Common use of Unethical Sponsoring Clause in Contracts

Unethical Sponsoring. A. Unethical sponsoring activities include, but are not limited to, enticing, bidding or engaging in unhealthy competition in trying to acquire a prospect or new Wellness Advisor from another Wellness Advisor or influencing another Wellness Advisor to transfer to a different sponsor. B. Allegations of unethical sponsoring must be reported in writing to the Company Compliance Department within the first thirty (30) days of enrollment. If the reports are substantiated, the Company may transfer the Wellness Advisor or the Wellness Advisor’s downline to another sponsor, Placement or organization without approval from the current up-line Sponsor or Placement Wellness Advisors. The Company remains the final authority in such cases. C. The Company prohibits the act of “Stacking.” Stacking is the unauthorized manipulation of the Magneceutical Health Compensation Plan and/or the marketing plan in order to trigger commissions or cause a promotion off a downline Wellness Advisor in an unearned manner. One example of stacking occurs when a Sponsor places participants under an inactive downline without his or her knowledge in order to trigger unearned qualification for commissioning. Stacking is unethical and unacceptable behavior, and as such, it is a punishable offense with measures up to and including the termination of the Wellness Advisor positions of all individuals and/or entities found to be directly involved. D. Should Wellness Advisors engage in solicitation and/or enticement of members of another direct sales company to sell or distribute Magneceutical Health products and services to, they bear the risk of being sued by the other direct sales company. If any lawsuit, arbitration, or mediation is brought against a Wellness Advisor alleging that they engaged in inappropriate recruiting activity of another company’s sales force or Customers, Magneceutical Health will not pay any of the Wellness Advisor’s defense costs or legal fees, nor will Magneceutical Health indemnify the Wellness Advisor for any judgment, award, or settlement.

Unethical Sponsoring. A. Unethical sponsoring activities include, but are not limited to, enticing, bidding or engaging in unhealthy competition in trying to acquire a prospect or new Wellness Advisor from another Wellness Advisor or influencing another Wellness Advisor to transfer to a different sponsor. B. Allegations of unethical sponsoring must be reported in writing to the Company Compliance Department within the first thirty (30) days of enrollment. If the reports are substantiated, the Company may transfer the Wellness Advisor or the Wellness Advisor’s downline to another sponsor, Placement or organization without approval from the current up-line Sponsor or Placement Wellness Advisors. The Company remains the final authority in such cases. C. The Company prohibits the act of “Stacking.” Stacking is the unauthorized manipulation of the Magneceutical Health Compensation Plan and/or the marketing plan in order to trigger commissions or cause a promotion off a downline Wellness Advisor in an unearned manner. One example of stacking occurs when a Sponsor places participants under an inactive downline without his or her knowledge in order to trigger unearned qualification for commissioning. Stacking is unethical and unacceptable behavior, and as such, it is a punishable offense with measures up to and including the termination of the Wellness Advisor positions of all individuals and/or entities found to be directly involved. . D. Should Wellness Advisors engage in solicitation and/or enticement of members of another direct sales company to sell or distribute Magneceutical Health products and services to, they bear the risk of being sued by the other direct sales company. If any lawsuit, arbitration, or mediation is brought against a Wellness Advisor alleging that they engaged in inappropriate recruiting activity of another company’s sales force or Customers, Magneceutical Health will not pay any of the Wellness Advisor’s defense costs or legal fees, nor will Magneceutical Health indemnify the Wellness Advisor for any judgment, award, or settlement.