RE-SPONSORING PROCEDURE

Responsoring

F.1.1 Any active distributor can re-sponsor other distributors who did not renew their distributorships after 1 year of inactivity. Distributors who requested termination or are terminated can also be re-sponsored after they have been inactive for 1 year. Any distributor being re-sponsored will remain at the 6% level according to the Company Policy, provided that his/her status is at, or higher than, the 6% level prior to the re-sponsor. A re-sponsored distributor cannot re-sponsor any downline(s) in their former organization.

F.1.2 Any distributor and his/her upline(s) who directly or indirectly spur other distributors not to renew their distributorships in order to facilitate the purpose of re-sponsoring will be penalized/disqualified as a Profit Sharing Manager and PAM or be suspended for one year or terminated by the Company. For this offence, a distributor, who has not qualified as a Profit Sharing Manager or PAM, will be penalized for one Profit Sharing or PA year when they qualify. Ignorance is no defense. We do not want upline(s) to claim they do not know that their downlines have committed this offence especially when the downlines are using their centers.

F.1.4 In the event that any distributor utilizes the name of his/her spouse or relative or any other persons to participate in another distribution line, then the whole distribution network of the illegitimate distributor will be allocated back to the original upline distributor who first sponsored the distributor into the sales system. All bonuses and benefits will be reclaimed and paid back to the original line. The distributor and his/her upline(s) will be suspended for one year or terminated by the Company or be penalized/disqualified as a Profit Sharing Manager and PAM. Ignorance is no defense. We do not want upline(s) to claim they do not know what is going on in their organization especially when the downlines are using their centers.

F.1.5 All downlines of an International Distributor can only be re-sponsored after the downlines of the International Distributor have been inactive for 3 years.

F.2 Definition Of Inactivity

F.2.1 No products purchased from any upline, downline, other distributors or the Company within one year.

F.2.2 Not sponsoring any individual to participate into DLC sales organization within one year.

F.2.3 Not attending any Company related meetings, including but not limited to, OPP, trainings, seminars, conferences, home meetings or home parties and other activities in connection with DLC within one year. Any photos, persons, documents, records or videotapes will be valid evidence to prove the distributor’s participation in the activities.

F.2.4 Note: Any distributor applying for re-sponsorship shall execute the Re-Sponsor Application Form. After confirmation by the Company, it becomes effective.


RESPONSORING PROCEDURE

Effective DECEMBER 1, 2010, an existing distributor who has not purchased any DLC Products for a minimum of ONE (1) year, from the Company or from any other distributor, and has not received any other payments from a DLC Distributor during that same time frame, will be considered for re-sponsoring. The distributorship will be required to sign an affidavit under penalty of perjury with respect to the above policy before re-sponsoring will be allowed.
Instructions for Re-Sponsorship Affidavit

  1. There will be no exceptions granted to the requirements.
  2. The re-sponsoring affidavit must be completed and signed by the distributor requesting the re-sponsorship.
  3. The re-sponsorship affidavit must be signed before a notary public in the jurisdiction where distributor is a resident.
  4. The re-sponsorship affidavit must be submitted to DLC along with a new distributor application for verification and approval by Head Office. Once approved, the new application form together with the notarized re-sponsorship affidavit will be accepted and stamped. Distributor data will then be updated with the new sponsor’s data.


RE-SPONSORSHIP AFFIDAVIT


I, ____________________________________________, identification # 630-____-____-____, hereby request that I be re-sponsored as a Diamond Lifestyle Corporation distributor by ______________________________, identification # 630-____-____-____ into Diamond Lifestyle Corporation (DLC). Further I do hereby swear and affirm under penalties of perjury the following:

  1. I am currently sponsored by ________________________________, Identification # 630-____-____-____.
  2. I have not purchased directly or indirectly, any DLC products from any source, domestically or internationally, during the previous twelve (12) months.
  3. I have not sold any DLC products during the previous twelve (12) months.
  4. I have not sponsored any other individuals into the DLC business during the previous twelve (12) months.
  5. I have not requested any changes in my distributorship within the past twelve (12) months.
  6. I have never, at any time, received money or other remuneration of any kind from anyone for refraining from activity as a DLC distributor.
  7. It is understood by me that I will not retain any downline or any prior position level higher than 6% obtained in the marketing plan and relinquish all rights, if any, I previously obtained and it will not be possible to reinstate that position. With this re-sponsoring, I will begin as a 6% level distributor (if I was a 6% level or higher before the re-sponsoring AND my new sponsor is at least 6% level) or as a new distributor in the DLC marketing program.


Dated this __________________________.

___________________________
Distributor Signature        


SUBSCRIBED AND SWORN to before me this ___________________ in _______________________.


NOTARY PUBLIC
Doc No. __________
Page No. _________
Book No. _________
Series of 2010.