Royale Code of Conduct Part 3

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.

Cross sponsoring shall be penalized in the following

FIRST OFFENSE: One (1) month suspension of all privilege with forfeiture of all sales bonuses and other remunerations either monetary or in kind which accrued at the time of the commission of the offense.

SECOND OFFENSE; Termination/cancellation of all privileges, sales bonuses and other remunerations either monetary or in kind. However, independent distributors sanctioned with the termination/cancellation of privileges shall have the right to re- apply to be an independent distributor after two (2) years from the time the account has been terminated/ cancelled.

CODE NO. 8

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:

a) Using a fictitious name, or dummy for registration or sponsoring purposes:

b) By altering the quality, fineness or weight of the product or any product of the company;

c) Issuing a cheek to a Fellow distributor or to the company or incurring obligation to both, without or with insufficient funds to cover the amount of the check or evading the performance thereof or any obligation after demand.

PENALTY

FIRST OFFENSE: Termination/cancellation of all privileges, sales bonuses and other rcmunerations either monetary or in kind. However, independent distributors sanctioned with the termination/cancellation of privileges shall have the right to re- apply to be an independent distributor after two (2) years from the time the account has been terminated/ cancelled.

CODE NO. 9

All intellectual property rights for products and services of the Company shall remain the exclusive property of ROYALE. 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 ROYALE‘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 ROYALE.


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