Read before signing!

The Paparazzi Accessories Independent Consultant Agreement is made of 3 documents:

1. Enrollment Terms & Conditions;
2. Policies and Procedures; and
3. Marketing and Compensation Plan.

The Enrollment Terms and Conditions are presented to you when you are signing up under your sponsor, online or in person. This is a snap from my replicated site on Paparazzi Accessories.

All three documents that are in force currently are included in this blog post in text that has been reformatted to improve readability and rendering through screen readers for persons who have sight impairment. The text has not been modified other than formatting and minimal 'notes' made by Bling Auntie. All spelling errors, grammatical errors, and outlining errors remain unchanged from the publications provided by Paparazzi Accessories.

---

---

---

Enrollment Terms & Conditions
Paparazzi Accessories

1. I understand that as an Independent Consultant for Paparazzi (“Paparazzi”): 

a. I have the right to offer for sale Paparazzi products and services in accordance with these Terms and Conditions. 

b. I have the right to enroll persons in Paparazzi. 

c. If qualified, I have the right to earn commissions pursuant to the Paparazzi Compensation Plan. 

2. I agree to present the Paparazzi Marketing and Compensation Plan and Paparazzi products and services as set forth in official Paparazzi literature. 

3. I agree that, as a Paparazzi Consultant, I am an independent contractor and not an employee, partner, legal representative, or franchisee of Paparazzi. I agree that I will be solely responsible for paying all expenses which I incur in my business, including, but not limited to, travel, food, lodging, secretarial, office, long distance telephone and other expenses. I UNDERSTAND THAT I SHALL NOT BE TREATED AS AN EMPLOYEE OF PAPARAZZI FOR FEDERAL OR STATE TAX PURPOSES. Paparazzi is not responsible for withholding and shall not withhold or deduct from my bonuses and commissions, if any, FICA or taxes of any kind unless required by law. 

4. I have carefully read and agree to comply with the Paparazzi Policies and Procedures, the Paparazzi Marketing and Compensation Plan, which are incorporated into and made a part of these Terms and Conditions (these three documents shall be collectively referred to as the “Agreement”). I understand that I must be in good standing and not in violation of the Agreement to be eligible for bonuses or commissions from Paparazzi. I understand that the Paparazzi Policies and Procedures and/or the Paparazzi Marketing and Compensation Plan may be amended at the sole discretion of Paparazzi, and I agree to abide by all such amendments.

Notification of amendments shall be posted on Paparazzi’s website. Amendments shall become effective 30 days after publication. The continuation of my Paparazzi business or my acceptance of bonuses or commissions shall constitute my acceptance of any and all amendments.

5. The term of this Agreement is one year. If I fail to annually renew my Paparazzi business through the purchase of inventory, or if it is canceled or terminated for any reason, I understand that I will permanently lose all rights as a Consultant. I shall not be eligible to sell Paparazzi products and services, nor shall I be eligible to receive commissions, bonuses, or other income resulting from the activities of my former downline sales organization. In the event of cancellation, termination, or nonrenewal, I waive all rights I have, including, but not limited to, property rights to my former downline organization and to any bonuses, commissions or other remuneration derived through the sales and other activities of my former downline organization. 

Paparazzi reserves the right to terminate all Consultant Agreements upon 30 days notice if the Company elects to:

(1) cease business operations;

(2) dissolve as a business entity; or

(3) terminate distribution of its products and/or services via direct selling channels.

Consultant may cancel this Agreement at any time and for any reason upon written notice to Paparazzi at its principal business address. 

6. I may not assign any rights under the Agreement without the prior written consent of Paparazzi. Any attempt to transfer or assign the Agreement without the express written consent of Paparazzi renders the Agreement voidable at the option of Paparazzi and may result in termination of my business. 

7. I understand that if I fail to comply with the terms of the Agreement, Paparazzi may, at its discretion, impose upon me disciplinary sanctions as set forth in the Policies and Procedures. If I am in breach, default or violation of the Agreement at termination, I shall not be entitled to receive any further bonuses or commissions, whether or not the sales for such bonuses or commissions have been completed. 

8. Paparazzi, its parent or affiliated companies, directors, officers, shareholders, employees, assigns, and agents (collectively referred to as “affiliates”), shall not be liable for, and I release Paparazzi and its affiliates from all claims for consequential and exemplary damages for any claim or cause of action relating to the Agreement. I further agree to release Paparazzi and its affiliates from all liability arising from, or relating to, the promotion or operation of my Paparazzi business and any activities related to it (e.g., the presentation of Paparazzi products or Compensation and Marketing Plan, the operation of a motor vehicle, the lease of meeting or training facilities, etc.) and agree to indemnify Paparazzi for any liability, damages, fines, penalties, or other awards arising from any unauthorized conduct that I undertake in operating my business. 

9. The Agreement, in its current form and as amended by Paparazzi at its discretion, constitutes the entire contract between Paparazzi and myself. Any promises, representations, offers, or other communications not expressly set forth in the Agreement are of no force or effect. 

10. Any waiver by Paparazzi of any breach of the Agreement must be in writing and signed by an authorized officer of Paparazzi. Waiver by Paparazzi of any breach of the Agreement by me shall not operate or be construed as a waiver of any subsequent breach. 

11. If any provision of the Agreement is held to be invalid or unenforceable, such provision shall be severed, and the severed provision shall be reformed only to the extent necessary to make it enforceable. The balance of the Agreement will remain in full force and effect.

12. This Agreement will be governed by and construed in accordance with the laws of the State of Utah, without regard to principles of conflicts of laws. In the event of a dispute between a Consultant and Paparazzi arising from, or relating to, the Agreement or the rights and obligations of either party, the parties shall attempt in good faith to resolve the dispute through nonbinding mediation as more fully described in the Policies and Procedures. Paparazzi shall not be obligated to engage in mediation or arbitration as a prerequisite to disciplinary action against a Consultant. If the parties are unsuccessful in resolving their dispute through mediation, the dispute shall be settled totally and finally by arbitration as more fully described in the Policies and Procedures. Notwithstanding the foregoing, Paparazzi shall be entitled to bring an action before the State or Federal Courts in Salt Lake County, State of Utah, seeking a restraining order, temporary or permanent injunction, or other equitable relief to protect its intellectual property rights, including, but not limited to, actions to protect its customer and/or Consultant lists as well as other trade secrets, trademarks, trade names, patents, and copyrights. 

13. The parties consent to jurisdiction and venue before any federal or state court in Salt Lake County, State of Utah, for purposes of enforcing an award by an arbitrator, an action by Paparazzi for equitable relief, or any other matter not subject to arbitration. 

14. Louisiana Residents: Notwithstanding the foregoing, Louisiana residents may bring an action against the Company with jurisdiction and venue as provided by Louisiana law. 

15. Montana Residents: A Montana resident may cancel his or her Consultant Agreement within 15 days from the date of enrollment and may return his or her Enrollment for a full refund within such time period. 

16. If a Consultant wishes to bring an action against Paparazzi for any act or omission relating to or arising from the Agreement, such action must be brought within one year from the date of the alleged conduct giving rise to the cause of action, or the shortest time permissible under state law. Failure to bring such action within such time shall bar all claims against Paparazzi for such act or omission. Consultant waives all claims that any other statute of limitations applies. 

17. I authorize Paparazzi to use my name, photograph, personal story and/or likeness in advertising or promotional materials and waive all claims for remuneration for such use. 

18. A faxed copy of the Agreement, as well as a digitally scanned copy, or digitally displayed and agreed to, shall be treated as an original in all respects. 

NOTICE OF RIGHT TO CANCEL

You may CANCEL this transaction, without any penalty or obligation, within THREE BUSINESS DAYS from the above date (5 business days for Alaska residents). If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within TEN BUSINESS DAYS following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled. If you cancel, you must make available to the seller, at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk. If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your Notice of Cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract. To cancel this transaction, mail or deliver a signed and dated copy of this Cancellation Notice or any other written notice, or send a telegram to Paparazzi 36 North 1000 West, Hurricane, UT 84737 NOT LATER THAN MIDNIGHT of the third business day following the date of your application.

---

Policies and Procedures

Effective September 1, 2015

SECTION 1 – The Paparazzi Mission Statement

To bring strength, independence, and empowerment to individuals and their families by building confidence and financial freedom through affordable fashion. While $5 jewelry may not change the world, we believe those who wear it will.

SECTION 2 – Introduction

2.1 Independent Consultant Agreement

The Independent Consultant Agreement (Agreement) comprises of the following items, any formal agreement to such Independent Consultant Agreement or any action representing Paparazzi as an Independent Consultant (Consultant or Paparazzi Consultant or Independent Consultant) through the purchase of product at wholesale price, participation of the Compensation Plan, or the retail of any Paparazzi product constitutes an agreement to abide by the following articles:

a. The Independent Consultant Agreement (note: This should read “Enrollment Terms and Conditions”)

b. The Policies and Procedures (this document)

c. The Paparazzi Compensation Plan

When referring to the Consultant Agreement or Agreement, it is referring to all of the documents and components as described above. All Independent Consultants of Paparazzi carry the responsibility to read all components of the Agreement, and to be compliant with all aspects of said Agreement. When sponsoring or enrolling a new Independent Consultant into Paparazzi, it likewise is their responsibility to become familiar with said Agreement and components thereof before signing the Independent Consultant Agreement or enrolling through an online form. It is the responsibility of all sponsoring Consultants to inform their new enrollments of the existence of these agreements, and that by enrolling as an Independent Consultant they are bound by such Agreements.

In this document or any component of the Agreement, when referring to Paparazzi as a corporate structure, and any entities incorporated therein, they will be referred to by either “Company” or “Paparazzi.”

Consultant will determine the method, details and means of performing the services under the Agreement. Consultant shall take general direction from Paparazzi and abide by the policies and procedures set forth herein.

Consultant enters into this Agreement as, and shall continue to be, an independent contractor. Under no circumstances shall the Consultant look to Paparazzi as an employer, nor as a partner, agent, or principal. Consultant shall have no authority as agent or otherwise to act in the name of or on behalf of the Company or to bind the Company to any contract, agreement or other arrangement whatsoever. Consultant shall not be entitled to any benefits accorded to the Company’s employees including pension plan contributions, workers’ compensation, unemployment insurance, medical or disability insurance, vacation or sick pay.

2.2 Purpose of the Policies and Procedures

The purpose of this Agreement and these Policies and Procedures is to define the relationship between an Independent Consultant, other Independent Consultants, and/or the Company, and to clearly articulate the expected behavior and acceptable business conduct of all parties involved. By agreeing to the Independent Consultant Agreement and its components, the Independent Consultant is required to comply with it and its components, as well as with all federal, state, and local laws governing the Independent Consultant’s business activities.

If there are any questions in relation to the Independent Consultant Agreement, all Independent Consultants have their Sponsor and the Paparazzi Support staff available to them for assistance.

2.3 Changes to the Agreement

Paparazzi reserves the right to amend the Agreement and any or all of its components, as well as its prices and commissionable volume levels, at its sole and absolute discretion. By executing or agreeing to the Consultant Agreement or any of its components, a Consultant agrees to abide by all amendments or modifications that Paparazzi elects to make. Amendments shall be effective upon notice (or a reasonable attempt to notify) to all Consultants that the Agreement or any of its components have been modified. Notification of amendments shall be published in any official capacity by Paparazzi. Paparazzi shall provide or make available to all Consultants a complete copy of the amended provisions by one or more of the following methods:

(1) posting on the Company’s official website;

(2) electronic mail (e-mail);

(3) inclusion in any Company publications;

(4) posting in the Consultant’s virtual Back Office or

(5) any special mailings.

The continuation of a Consultant’s Paparazzi business, activity, purchases, or sale of Paparazzi product, as well as any acceptance of bonuses or commissions constitutes acceptance and agreement of any and all amendments to the Agreement, any of its components, and the updated documents in their entirety.

If any amendments or modifications to this Agreement are not acceptable to the Consultant, they have 30 (thirty) days from the Agreement’s original publication date to notify the Company and request the termination of their Consultant Agreement.

2.4 Business Delays Beyond Paparazzi’s Control

Paparazzi is not responsible for any or all delays or failures in the performance of its obligations when such performance is made commercially impractical due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, riot, war, fire, natural disasters, death, curtailment of a party’s sources of supply, or government decrees or orders.

This also applies to third party vendors of Paparazzi and limitations within their services, including but not limited to delivery of packages or product, or any other feature, function, or service that is not expressly within the Company’s control.

2.5 Invalid or Unenforceable Policies

If any part of the Agreement is held to be invalid or unenforceable, only that invalid or unenforceable portion may be removed and the remainder of the Agreement shall remain intact and in force.

2.6 Compliance Enforcement

The Company never gives up its right to insist on the Independent Consultant’s compliance with the Agreement and with the applicable laws governing the conduct of a business. No failure of Paparazzi to exercise any right or power under the Agreement or to insist upon strict compliance by a Consultant with any obligation or provision of the Agreement, and no custom or practice of the parties at variance with the terms of the Agreement, shall constitute a waiver of Paparazzi’s right to demand exact compliance with the Agreement or any components thereof. Waiver by Paparazzi can be effectuated only in writing by an authorized officer of the Company. Paparazzi’s waiver of any particular breach by a Consultant shall not affect or impair Paparazzi’s rights with respect to any subsequent breach, nor shall it affect in any way the rights or obligations of any other Consultant. Nor shall any delay or omission by Paparazzi to exercise any right arising from a breach affect or impair Paparazzi’s rights as to that or any subsequent breach. The existence of any claim or cause of action of a Consultant against Paparazzi shall not constitute a defense to Paparazzi’s enforcement of any term or provision of the Agreement.

Any action or enforcement taken by Paparazzi in relation to a compliance issue will be addressed solely between Paparazzi and the parties involved. There is no requirement of notification to any other parties as to the outcome of such an investigation.

SECTION 3 – Becoming a Consultant

3.1 Requirements to Become a Consultant

To become a Paparazzi Consultant each applicant must:

a. Be of the age of majority in your state of residence, or 18 years of age;

b. Reside in the United States;

c. Have a valid Social Security Number (SSN) or Federal Tax ID Number (EIN);

d. Read and agree to abide by the Company’s Consultant Agreement and all components therein;

e. Purchase one of the Starter Kit options.

f. Complete and submit (physically or electronically) an Independent Consultant Application and Agreement to Paparazzi.

New Consultants may enroll online through the company’s official website or an Independent Consultant’s personal replicated website. An application with any secured or protected information, such as a Social Security Number or Employer Identification Number and credit card information, represents the personal application and agreement for such actions from the principle of such secured information. An existing Paparazzi Consultant must not fill out, sign, or accept the agreement on behalf of another Paparazzi Consultant.

Paparazzi reserves the right to reject or deny any new Consultant Agreement or Application, and/or to reject any Agreement after its execution for any violation of policy as documented by this Agreement.

3.2 One Consultant Business Per Household / Vested Interest

To uphold the nature of the Paparazzi Compensation Plan, only one Consultant Business may be open per household. This includes only having one executed Consultant Agreement per family, married couple, or live-in resident of the domicile. A corporation or business is also considered a single unit, household, or domicile for the purpose of this Agreement.

This restriction also includes the limitation that no Consultant can have a vested interest in more than one Consultant’s business or Paparazzi account, including but not limited to: order placing, account management, or any interest or action in a position with the Paparazzi genealogy which may define, enhance, or create an increase in commissions as a result.

3.3 Consultant Enrollment Fee

To enroll, a Paparazzi Consultant must purchase one of three Starter Kit options:

a. Preview Pack ($99)

b. Small Home Party Starter Kit ($299)

c. Large Home Party Starter Kit ($499)

The Starter Kit purchase price also includes the cost associated with the data creation of their account within the Consultant management software package, supports the costs associated with account management and service, provides the licensing of the Paparazzi name as an Independent Consultant, and creates a financial vestment in association with the adherence to the Agreement. Once the enrollment process has been completed, Paparazzi Consultants are free to use the Paparazzi brand (See Section 5) in the distribution of their Paparazzi inventory, and to purchase the Paparazzi product at a discounted wholesale price (See Section 3.4).

3.4 Consultant Benefits

After an Independent Consultant Application and Agreement has successfully been completed and accepted by Paparazzi, all the benefits from the Paparazzi program, including the product offering, marketing materials, and Compensation Plan are available to the Consultant. These benefits include:

a. The ability to purchase Paparazzi Accessories and products at wholesale price;

b. The ability to retail Paparazzi Accessories with the intention of earning a retail profit from the sale thereof;

c. The ability to hold house parties, larger parties, or promote larger shows under the Paparazzi name as an Independent Consultant;

d. The ability to participate in the Paparazzi Compensation Plan (receive bonuses and commissions, if eligible);

e. The ability to sponsor other Independent Consultants;

f. The ability to receive Paparazzi training and communication;

g. The ability to participate in Paparazzi sponsored events, services, trainings, motivational functions, and recognition programs;

h. The ability to participate in any promotional or incentive contests and programs sponsored by Paparazzi for its Consultants.

3.5 Business Entities

Certain types of corporations or businesses can apply to be a Paparazzi Independent Consultant through the Independent Consultant Agreement. Business entities are allowed to retail the product through any medium available to them (internet, retail store, etc.) as long as the retail or sales price to the end consumer is never lower (advertised or otherwise) than the suggested retail price per unit ($5 USD). Any exceptions to the suggested retail price offering must be approved in writing by an authorized officer of Paparazzi, and will only be considered for show events. This is in an effort to protect the business of all Independent Consultants.

During the registration process, all policies still apply that are applicable from the Agreement. All persons, including Consultants, principles, and employees, of the corporation or business entity are held to the “Vested Interest” clause in Section 3.2.

3.6 Identification

During the application process, the Independent Consultant must provide a Social Security Number or a Federal Identification Number to Paparazzi. Once the application is submitted and accepted, Paparazzi will assign a unique Consultant identification number. This will be used as the primary identifier of the Consultant account within Paparazzi Support, online applications, the tracking of orders, packages, and commissions processing and payments. These IDs and other identifying numbers should not be shared with others.

3.7 Maintaining Consultant Status

After the initial application process, maintaining an Independent Consultant status and placement within the Paparazzi commission tree structure is contingent upon the following things:

a. Adhering to and maintaining all published policies, agreements, and components thereof (be in good standing);

b. Order or accumulate at least 200 PV of inventory within the previous twelve (12) consecutive calendar months;

c. Be up-to-date on any invoices, owing balances, or retractions.

If at any point any of the items documented above are not maintained, the account will be terminated, and the position will be removed from the commission tree structure. At this point, the Consultant will lose all claim, rights, and privileges associated with the former position or account. If at any point a terminated Consultant wishes to re-engage as a Consultant of Paparazzi in good standing, the individual may reapply and, pending approval, may be reenrolled into the organization. Reapplying Consultants will not be placed in previous locations within the commission tree or gain any of their former privileges associated with their former position.

3.8 Qualifications for Inclusion in Consultant Search

In order for a Consultant to be included in the Consultant Search function on the corporate website, that Consultant must have been active the prior month. To be considered active is to have accumulated or purchased at least 50 PV of inventory within that month. Eligible Consultants are chosen at random in the search results and will not be listed in any particular order even if they meet the qualifications.

SECTION 4 – Consultant Relationship with Paparazzi

4.1 Independent Contractor Status

When a Consultant joins Paparazzi, they are an Independent Consultant, or independent contractor. They do not purchase a franchise or business opportunity, and the agreement between the Independent Consultant and Paparazzi does not create an employer/employee relationship, partnership, or joint venture. As a result, the Independent Consultant is solely responsible for paying all local, state, and federal taxes owed from any compensation earned, in the form of retail profits retained at the sale of all product or the bonus/commission plan offered by Paparazzi.

Paparazzi will not withhold any FICA or taxes of any kind from any commission or bonuses paid out. Independent Consultants are in complete control of the means by which they operate their Paparazzi business. They will establish their own goals, hours, parties, shows, and methods of sale – within compliance with this Agreement and applicable laws. They are solely responsible for paying all expenses incurred in the development of their business and are not authorized to incur any debt or obligation on behalf of or in the name of Paparazzi or other Consultants or to open any financial account on behalf of, for, or in the name of Paparazzi. The success of their Paparazzi business is the sole responsibility of the Independent Consultant.

4.2 Income Taxes

As an independent contractor, Independent Consultants will receive an IRS Form 1099 (NonEmployee Compensation) earnings statement if they are a U.S. resident that has earnings of over $600 paid from Paparazzi in the previous calendar year.

The Independent Consultant is solely responsible for paying local, state, and federal taxes on any income generated as an Independent Consultant. A copy of all IRS Form 1099s that are generated as a result of the criteria above will be remitted and sent to the United States Internal Revenue Service for the applicable tax year. If at any point the Federal Tax Information (name, SSN, EIN, etc.) provided by the Independent Consultant is wrong or contains an error, Paparazzi may hold all future earnings until the error is rectified within Paparazzi’s records and the correction is remitted to the IRS; in these circumstances, pending the severity of error, the Consultant may be subject to be liable for any fines incurred by excessive errors submitted to the IRS.

4.3 Reporting Errors

If at any time an Independent Consultant feels that there is an error made by Paparazzi in regards to data display, volume accumulation, commission calculation, order delivery, tree placement of Consultants, or any other error – the Consultant has 30 days to notify Paparazzi, in writing, or when the purported error or incident occurred. Failure to do so will waive Paparazzi’s liability to correct, rectify, or make any adjustments for the issue in question.

4.4 Limitations of Liability

By signing or agreeing to the Independent Consultant Agreement or any component thereof, the Consultant agrees to release, discharge, and hold harmless Paparazzi, and anyone directly affiliated with Paparazzi (employees, officers, etc.) from any loss or damages, including costs and fees, incurred or suffered by you as a result of:

a. The Independent Contractor’s breach of the Agreement (including these policies);

b. The improper promotion or operation of the Paparazzi opportunity, business, or related activities;

c. Any incorrect data or information provided by a Consultant to Paparazzi;

d. Any incorrect data or display information displayed by the Virtual Back Office;

e. The Consultant’s failure to provide any information to Paparazzi that may be necessary for Paparazzi to operate its business; or

f. The Consultant’s failure to execute their personal business strategy.

4.5 Request for Records

A Consultant’s request for physical copies of invoices, applications, downline reports or other records will require a review and approval by the Compliance Department and will be subject to a $1.00 charge per page, as well as any applicable shipping charges.

4.6 Roll-Up of Downline Organization

When a vacancy occurs in a downline organization due to the voluntary termination of a Paparazzi business, all Consultants or positions shift up one level in order to fill that vacancy within the organization or commission tree. This process and the removal of the terminated position is at the sole discretion and approval of the company, and may take up to three months to review.

Roll-up of downline organization may not be approved in circumstances where there is any manipulation in the roll-up or termination process, or there is a significant rank advancement or commission increase that will occur as a result of such roll-up. In circumstances where roll-up of the downline organization is not approved, the vacant position will still be terminated, and will remain empty until the company deems necessary.

When an account is terminated involuntarily by the Company, for any reason, and the original position had generated a total commission earning in excess of $50, the position will not be removed from the organization and the proceeding downline will not be “rolled-up.” This is due to the potential consequences as detailed above in such moves. The position will remain there, but be deemed inactive. As a result of compression in the Paparazzi Compensation Plan, it is anticipated that this activity will not negatively affect commission payout through the Unilevel program, however it will keep organizational leg structure intact, and minimize potential manipulation within the organization.

4.7 Sale, Transfer, or Assignment of a Paparazzi Business or Position

Although your Paparazzi business is privately owned and independently operated, the sale, transfer, or assignment of it is subject to certain limitations and corporate approval. If you wish to sell your Paparazzi business or position within the organization structure, you must receive written authorization from the Company, and the Company has first right to purchase the position.

In order to sell, transfer, or assign a Paparazzi business, the following criteria must be met:

a. The line of sponsorship must always be maintained, and the business must continue on;

b. The organization must be protected, and an agreement must be signed from the departing Consultant that it will be protected for the next 24 months after the transaction – resulting in no contact, recruiting, or cross recruiting;

c. The departing Consultant agrees not to enroll as a Paparazzi Consultant for a period of no less than twelve months, or as a Consultant or distributor for any network marketing or direct sales company for a period of no less than six months;

d. The purchasing agent must not currently be or have been a Consultant for the previous twelve months.

e. He or she must be new to Paparazzi;

f. The purchasing agent must enroll through the transaction as a new Consultant, signing the Agreement, and a new account created;

g. No history is transferable, only the position and location in tree;

h. Before the sale is finalized, it must be brought to Paparazzi’s attention for approval;

i. All participants must have been in good standing for the previous twelve months;

j. A $250 Transfer Fee must be paid prior to the approved transfer being processed.

Paparazzi reserves the right to deny the transfer or sale of any organization at its sole discretion, request additional information, or documentation. Upon approval or denial, Paparazzi will give further directions or timeline associated with the decision.

4.8 Separation of a Business

In circumstances where joint owners or partners of a single position or Paparazzi business no longer wish to continue the business relationship due to separation or divorce, there must be a way to equitably continue the business as a single entity, in its current location, while minimizing any impact to any other business owners which may be formally or informally associated with the business in question.

If such an action is not possible, then Paparazzi will involuntarily terminate the Consultant Agreement, and the position, account, or business entity will be terminated. During any business separation or divorce proceedings, the following options are available in which Paparazzi will support:

a. One party, with consent of the other, continues to operate the business pursuant to the

Agreement. All claimants on the position will deal directly with the party selected, and Paparazzi will deal and respond only to the selected account operator;

b. The parties may continue to operate the account as joint owners and partners.

In the event that the parties cannot come to a resolve for the dispute, Paparazzi will terminate the Consultant Agreement and execute its right to either terminate the position or take control of the account.

4.9 Transfer Upon Death of a Consultant

To affect a transfer upon the death of a Consultant, the claimant will need to provide the following:

a. Copy of the death certificate;

b. Notarized letter or legal instrument establishing the rightful successor; and

c. Completion of a new Consultant Agreement.

4.10 Indemnification

A Consultant is fully responsible for all of his/her verbal and written actions or statements made regarding Paparazzi products and the Paparazzi Marketing and Compensation Opportunity that are not expressly contained with official Paparazzi materials. Consultants agree to indemnify Paparazzi and Paparazzi’s directors, officers, agents, and employees and hold them harmless from any liability including judgments, civil penalties, refunds, attorney fees, court costs, or lost business incurred by Paparazzi as a result of the Consultant’s unauthorized representations or actions. This provision shall survive the termination of the Agreement.

4.11 Claims

Consultants may not make any claims in relation to the product or income generated by Paparazzi.

4.12 Consultant Support and Responsibilities to Retail Customers

The Paparazzi Support team provides services for enrolled or enrolling Paparazzi Independent Consultants. Paparazzi Support also offers services to Retail Customers of Paparazzi Consultants who make online purchases through the official Paparazzi website.

Consultants are responsible for providing support and services for their customers who purchase directly from them.

4.13 Paparazzi Right to Data

Paparazzi reserves the right to store acquired data from the Consultant. They also maintain the right to own, share, or display such data (excluding secure data) within reasonable means to increase the business of the Consultant, or the offering of Paparazzi. This right includes sharing contact information, general location information, success information, or any other reasonable data through appropriate mediums, such as the Paparazzi website, replicated sites, web based communication, letters, telephone, or other accepted mediums of communication.

Paparazzi commits to protect the integrity of such data to the full extent it is reasonably capable of doing, and to avoid selling or distributing any sensitive information with organizations or persons that are in-line with the mission and goals of Paparazzi, or that is in the reasonable welfare of their Consultants.

4.14 Disparaging Remarks

Consultants may not use disparaging remarks in relation to Paparazzi corporate staff, employees, directors, officers, or any other representative of Paparazzi, including but not limited to other Independent Consultants. Consultants are to conduct their business with positivity and in a manner that uplifts everyone. Comments made by Consultants that may be negative in nature and relate to others potentially damage their own business, the businesses of others, and thePaparazzi brand. Consultants should be courteous, polite, and always seek an amicable resolution to any disagreement or dispute.

Owners of social media sites, forums, blogs, or community pages are responsible to ensure that all messaging and content by contributors to those pages remain positive, uplifting, and supportive of the Paparazzi business, operators, Consultants, and programs. All comments made on any such sites are the sole responsibility of the owner to monitor, and any violation or disparaging comments made on such forums, will also be the responsibility of the site owner or manager as if they were made by them directly.

4.15 Paparazzi Code of Conduct

Paparazzi Consultants are expected to present themselves in a manner that is representative of the clean and uplifting culture of Paparazzi. This includes, but is not limited to, language, dress, appearance, and conduct. Paparazzi reserves the right to exclude any Consultant from any event for violation of this code.

SECTION 5 – Operating a Paparazzi Business

5.1 Adherence to the Paparazzi Marketing and Compensation Plan

Consultants must adhere to all published Paparazzi Marketing and Compensation Plan literature. Paparazzi Consultants may not offer Paparazzi products or opportunity in conjunction with any other system, program, or method of marketing other than that which is set forth in the published Paparazzi Marketing literature. Consultants may not enforce, require, or encourage Customers or Consultants to execute any agreement other than the official Independent Consultant Agreement.

5.2 General Advertising

Paparazzi Consultants shall safeguard and promote the good reputation of Paparazzi and its products. The marketing of Paparazzi products, opportunity, compensation plan, and marketing shall be consistent with the public interest, and must avoid all discourteous, deceptive, misleading, slanderous, unethical or immoral conduct or practices. Any personalized promotional material or advertising attempt must be approved by Paparazzi and its legal department to ensure that there are no claims or violations to the Paparazzi trademark, namesake, or other legal issues. Consultants are not permitted at any time to make any income claims in relation to the Paparazzi opportunity.

All labels, trademarks, logos, names or titles, must include the title “Independent Consultant” prominent enough to easily identify that the Consultant represents their own business and not Paparazzi as a whole or as a corporation.

5.3 Use of Paparazzi Name

Consultants may not use the Paparazzi name or any of its registered trademarks, names, services, or products in any personalized or personally owned businesses, webpage addresses, e-mail address domains, or internet domain registration.

Consultants, or anyone, may not use Paparazzi trademarks, designs, or symbols, without its express prior written permission. Consultants may not record Paparazzi sponsored Company events, speeches, conference calls, or any other event or function through any medium without the prior written consent from Paparazzi.

Consultants may only use the Paparazzi name in casual communication (i.e. social mediacommunication, online forums, blogs, email addresses, etc.) under the following considerations:

(1) it is with the intention of building their Paparazzi business,

(2) when there are no plural terms used in the title of use of the Paparazzi name, so as to not represent a group of individuals, and

(3) there is a specific individual identifier clearly indicating not only the use of it by an Independent Consultant, but which independent Consultant is using the term (such as Consultant Identification Number or name).

5.4 Paparazzi Brand

At no time may a Consultant re-label or remove the label of any Paparazzi product for retail sale. Such relabeling or repackaging would violate this Agreement and governing laws, which could result in severe criminal penalties. Civil liabilities may also result when the persons using the products suffer any type of injury or their property is damaged as a consequence of the repackaging or relabeling of products.

Any media inquiries in relation to Paparazzi must be responded to by Paparazzi’s Communications Department and corporate headquarters, and Consultants should not attempt to respond to any inquiries without express written permission to do so.

5.5 Use of the Paparazzi Logo

At no time can any Consultant create or distribute any item or literature that contains the Paparazzi logo and brand that was not created by Paparazzi directly and distributed for that intended purpose.

Independent Consultants are free to use the “Paparazzi Independent Consultant” logo, which is available to all Consultants online; as long as they do not alter or distort the logo in any way.

Consultants may make any tools, or accessories necessary for them to build their business using the Paparazzi Independent Consultant logo, for personal use or consumption. No Consultant may create and then sell, distribute, or promote, any items with the Independent Consultant logo to other Consultants, members of their teams, or anyone else.

5.6 Team Use of Consultant Logo and Team Services

The only exception to using and reselling an item with the Paparazzi Independent Consultant logo that will be considered will be for the purpose of team use, and only under the following considerations:

1. The Consultant creating, designing, and reselling the item has proven themselves capable both financially and characteristically through building a successful organization, and has reached the rank of A-Lister for a minimum of two consecutive months;

2. The qualified Consultant has also formally agreed to all terms within the Consultant Licensing Agreement (which can be requested once qualifications are met);

3. All items with the Paparazzi logo use the Paparazzi Independent Consultant logo, and also include an additional team logo prominently displayed on the item;

4. All items are submitted and approved by Paparazzi, before they are produced, created, generated, and sold to the general public;

5. All items are to be tasteful, and of quality.

Paparazzi reserves the right to deny any design on the grounds of brand protection. Consultants may not charge other Consultants or team members for any type of products, services, or training (material or immaterial) unless they have proved their ability to succeed with Paparazzi by reaching the rank of A-Lister for a minimum of two consecutive months, and have the express written approval of Paparazzi to do so through the approved Licensing Agreement.

In the event where there is a personal or team brand, or any other brand related to the business of a Consultant, at no time may that brand be seen to circumvent, replace, overshadow, or supersede the Paparazzi brand, in any forum, which may include but not be limited to online activity, shows or expositions, or any other related activity which is reasonably intended to build the Paparazzi brand.

5.7 International Sales

Consultants are only allowed to sell the Paparazzi products and opportunity within the United States, and those countries that Paparazzi has announced they are officially launched in

(currently only the United States, including Puerto Rico and Guam).

5.8 Consultant Release

By agreeing to the Agreement or any of its components, the Independent Consultant authorizes Paparazzi to use their name, testimonials, likeness, or experiences in Paparazzi advertising or promotional material with no remuneration. Further, any reproduction of any photos, images, testimonials, stories, conversations, or documentation that is created by Paparazzi or provided to the company is also authorized for reproduction in any form without remuneration.

5.9 Unsolicited Communication

Independent Consultants may not initiate any unsolicited communication (faxes, e-mails, phone, etc.) to anyone whom they are not personally aware of (or to people they do not know).

5.10 Online Activity

Independent Consultants may not use any online forum (eBay, classifieds, Craigslist, or any other online retail tool) to bundle, distribute, or sell Paparazzi products.

Independent Consultants are not allowed to use a mass e-mailer or generate “SPAM” for their Paparazzi Business.

Social media or networking is permitted for the intention of developing a warm market, or networking with current associates, but is not permitted for the direct sale or distribution of Paparazzi product. Consultants are not allowed to recruit through any Paparazzi Corporate social media page, or through any social media page that does not directly belong to that Consultant. This also includes directly contacting someone through instant messages or e-mails that were found through a social media site not directly owned by that Consultant.

Violation of this policy can result in termination, as potential Consultants who are interested in doing Paparazzi can quickly become disinterested through heavy online recruiting activities. Any and all online activity of Consultants with the intention of promoting Paparazzi must be appropriately designated as an “Independent Consultant.” In accordance to Section 5.13, Paparazzi products must not be displayed or sold alongside any other product(s). This policy extends to all online forums including but not limited to websites, shopping carts, and social media platforms.

5.11 Retailing or Reselling

After the initial product or inventory is purchased, no product can be resold or retailed for less than the suggested retail price (no product under $5 USD). This includes, but is not limited to, offering or advertising free items through buy X, get X promotions or giving free gifts with a purchase. This same policy applies whether the free promotional item being offered is a Paparazzi product or a product not carried in Paparazzi’s inventory. Offering or advertising these types of promotions lowers the retail price of each piece sold below the required $5 USD minimum. Doing so compromises the entire Paparazzi program for all Consultants. Any promotion of a Consultant’s independent business or the Paparazzi opportunity through any channel of communication (public or private) is considered advertising.

Additionally, giving away free items that are not sold by Paparazzi can lead customers to the assumption that those items are part of Paparazzi’s product offering. As outlined in Section 5.13, offering non-Paparazzi products alongside Paparazzi products compromises its good name and can lead to the Paparazzi name and brand being associated with inferior products. Any exceptions to this policy must be authorized by an official Paparazzi officer in writing prior to the sale or event.

5.12 Recruiting or Enrolling Promotions

At no point may a Consultant advertise or promote an enrolling or recruiting promotion in which the price or value of the enrollment process is discounted. This includes, but is not limited to, offering discounted Starter Kits, reimbursements, cash offers for enrollment, extra personal inventory, or anything else that is seen to increase the value or decrease the value of the enrollment process. This activity is often seen as an attempt to create an unfair advantage to other Consultants.

5.13 Parties, Fairs, Expositions, and Other Temporary Sales Forums

Parties, fairs, expositions, and other temporary sales forums represent good opportunities to both sell product and expose a population of people to the Paparazzi lifestyle, culture, product, and business opportunity. Paparazzi does not have any control over the business practices or the behaviors of the event organizers, hostess home environments, or managers at the event; and Paparazzi has no intention of mediating within these environments. Therefore, Paparazzi requests that all Consultants who wish to participate in these activities adhere to the following, and acknowledge the same through this Agreement:

a. All transactions are on a cash-and-carry basis, or through an independently established merchant account provider. Paparazzi will not process credit card charges, or accept funds on behalf of an Independent Consultant unless at a Paparazzi sponsored event and such is permitted. Paparazzi does not issue or accept any liability for the decline of charges, chargebacks, lost cash, or any other transaction difficulties that may take place at such events. All transactions for retail product are the sole responsibility of the Independent Consultant.

b. Paparazzi does not offer or accept any liability insurance for any home party, meeting, booth, bazaar, seminar, show, or any other event or sales location initiated by the Independent Consultant. Such events are the Independent Consultant’s meetings, and therefore all liabilities and ownership are the Consultant’s responsibility.

c. Only one Paparazzi booth is allowed per show or event. It is the Consultant’s responsibility to check with the show managers or promoters to ensure that there are no Paparazzi Consultants contracted before space is contracted.

d. Paparazzi show booths must exclusively offer Paparazzi Accessories. Paparazzi Accessories may not be mixed with any other products or offerings within a show booth.

e. The Consultant must make it known to the show managers and promoters that he or she is a Paparazzi Consultant and that he or she can be the only Paparazzi Consultant present at the event. This must be done in writing. Failure to obtain written acknowledgement from the show manager or promoter that they understand this policy minimizes the Consultant’s ability to mediate any potential issues that may arise.

f. If there are any disputes in relation to this policy, and there is more than one Consultant selling Paparazzi products at a show, the challenging Consultant must take it up with the show promoter or manager with whom they contracted the space in an effort to resolve the issue. Paparazzi will not mediate such disputes.

g. The Consultant may never offer a sale, deal, or promotion at a show that lowers the retail or sale value below the suggested retail value of $5 per unit.

h. No competing jewelry or similar products may be offered alongside or in the same booth as Paparazzi products in order to maintain its good name, and to minimize comparison with inferior products.

i. The Independent Consultant, or an agent thereof, must attend all hostess parties, home parties, show booths, or events that they are sponsoring or supporting (gaining retailing product at). The booth or party may never be left unattended at any time, or with someone who is not a Paparazzi Consultant.

It should be noted that only the show director has the ability to resolve any issues on the premises. As any concerns or issues are directed towards Paparazzi, it can only be in relation to a claim of policy violation, and the Consultant who has followed the policy as outlined above, and has their documentation dated and in writing will overrule. No circumstance, in which neither disputing party in relation to a policy violation has followed the above policy, will be considered by Paparazzi. A failure to comply with the policy as outlined above, equates to failure to dispute or challenge another’s right within the policy.

5.14 Change of Sponsor or Placement

To protect the integrity of all marketing organizations and the hard work of all Consultants within the organization, Paparazzi will seldom allow changes to the sponsorship or placement of another Consultant or organization. Maintaining the integrity of the sponsorship and placement trees is critical for the success of every Consultant and marketing organization. Accordingly, the transfer of a Paparazzi business from one position to another is rarely permitted. Requests for a change of Sponsor or Placement within an organization must be submitted in writing to the Paparazzi Support Department in writing via email (support@paparazziaccessories.com) and must include the reason for the request. Transfers will only be considered in the following circumstances:

a. Cases involving fraudulent or unethical sponsoring. All requests of this nature must be made with 60 days of the alleged activity;

b. Consultants may terminate their positions voluntarily, wait the required 12 (twelve) months, and then re-enroll within the desired organization; or

c. The request is made and received within 72 hours of the initial enrollment or placement.

It will be left to the sole discretion of Paparazzi whether any downline or team members may be moved in the process of such requests. At no time will a request be approved if it directly affects the ranking or significantly affects the monetary rewards from an organization (as a result of the move itself). There is a $25 non-refundable fee to investigate any requested changes. If at any time an Independent Consultant is deemed inactive for a period of three consecutive months, that Independent Consultant forfeits all rights to have their approval required for any requested changes within their organization, at the discretion of the Company.

5.15 Non-Solicitation

Consultants may NOT participate in other direct selling opportunities (party planning, network marketing, and/or multilevel marketing) whose primary product line/offering competes with Paparazzi Accessories. This includes but is not limited to: Necklaces, earrings, bracelets, rings, lanyards, headbands, and/or hair clips. If a Consultant has a question about a particular company and whether or not there is a conflict, it is the Consultant’s obligation to contact the Paparazzi Compliance Department via email at compliance@paparazziaccessories.com for clarification. Failure to adhere to this policy and the continued participation in another competing company may result in disciplinary action. This may include suspension or termination of the Consultant’s account.

In addition, during the term of this Agreement, and for 12 months after the termination of a Paparazzi account, a Consultant may not solicit, recruit, or attempt to recruit other Paparazzi Consultants to any other network marketing business. Consultants must not sell, or attempt to sell, any competing non-Paparazzi products at any event where Paparazzi products are being sold. This includes but is not limited to jewelry, hair accessories, or other network marketing products.

Consultants may not display Paparazzi promotional material, signage, or literature in a way or fashion that may confuse or mislead a prospective customer or Consultant into believing there is a relationship between Paparazzi and non-Paparazzi products or services. Consultants may not offer the Paparazzi opportunity side by side, or in conjunction with, any non-Paparazzi opportunity, product, or service.

5.16 Downline Activity Reports (Genealogy)

Downline activity reports are available to Consultants to access and view their Paparazzi sales organization. These reports are available in the Consultant’s Virtual Back Office. These reports are property of Paparazzi, and therefore the information contained therein is confidential. The use of these reports outside the intended use of supporting and building a Paparazzi organization is in direct violation of this agreement and may bring legal action upon the violating Consultant. A Consultant shall not, on his/her own behalf, or on the behalf of any other person, partnership, association, corporation or other entity:

a. Directly or indirectly disclose any information contained in any

b. downline activity report to any third party;

c. Directly or indirectly disclose the password or access code to his/her downline activity report, or to the reports of any other Consultant;

d. Use the information to compete with Paparazzi or for any purpose other than promoting his/her Paparazzi business;

e. Recruit or solicit any Consultants or customers of Paparazzi listed on any report, or in any manner attempt to influence or induce any Consultant of Paparazzi to alter their business relationship with Paparazzi; or

f. Use or disclose to any person, partnership, association, corporation, or other entity any information contained in any downline activity reports – including sponsorship or placement relationships.

Upon demand by Paparazzi, any current or former Consultant will return the original and all copies of any downline activity reports to the Company.

5.17 Cross Sponsoring

Actual or attempted cross sponsoring is strictly prohibited. “Cross Sponsoring” is defined as the enrollment (or attempted enrollment) of an individual or entity which is already or has a current Independent Consultant Agreement on file with Paparazzi that has not expired or been terminated for the duration of 12 consecutive months. The use of a spouse’s or relative’s name, trade names, DBAs, assumed names, corporations, partnerships, trusts, federal ID numbers, fictitious ID numbers, or any other artifice to circumvent this policy is prohibited. Consultants must not demean, discredit, or defame other Consultants in an attempt to entice another Consultant to become a part of a new organization with Paparazzi or within another company.

If cross sponsoring is discovered, it must be brought to the Company’s attention immediately. Paparazzi will then conduct a compliance investigation, in which Paparazzi reserves the right to permanently terminate any agreements involved, rectify the organization as they deem appropriate, and potentially initiate legal action.

5.18 Cross-Company Recruiting

Any and all attempts, successful or unsuccessful, by any Consultant to cross recruit current Paparazzi Consultants to any other multilevel, network marketing, or party planning companies and organizations, constitutes a violation of this agreement.

This violation will result in immediate suspension of the Consultant’s account followed by an investigation into the matter and, if warranted or deemed necessary by the Compliance Department, the termination of the Consultant’s account.

5.19 Inventory Loading

Consultants must never purchase more products than they can reasonably use or sell to Retail Customers in a month, and therefore must not influence other Consultants to purchase more product than they can reasonably sell within a month. Not only will excess product not be returnable, it may be seen as Bonus Buying and a violation of Section 5.20.

5.20 Bonus Buying

Bonus Buying is strictly and absolutely prohibited. “Bonus Buying” involves any method of directly or indirectly maintaining or increasing a Consultant’s rank, volume, or commission level by purchasing products for which the Consultant does not have a bona fide need for personal use or bona fide reason or intent to resell within the next 30 days from the date of the order; or, placing orders personally with the intention of hitting or maintaining a rank, volume, or commission level. This also includes using multiple positions within the organization to achieve the goal of “buying” the bonus or achievement. If it is determined by the Compliance Department that a Consultant is Bonus Buying, that Consultant may be subject to suspension, termination, loss of commissions, loss of rank, or temporary or permanent suspension of the return policy. Product determined to be used or purchased in an abusive manner (i.e. Bonus Buying) will not be allowed to be returned.

5.21 Fraudulent Behavior

Consultants and the hostesses they work with are obligated to work in an ethical, fair, and honest manner. If a Consultant’s behavior or interactions are dishonest or fraudulent in any way, they will be immediately suspended, investigated, and potentially terminated. It is also expected that Consultant uphold all agreements, contracts, or obligations entered into with any other party, through the course of building their Paparazzi business.

5.22 Owning Another Direct Sales Company

Neither Consultants, nor their spouses/significant others, may be an owner/founder/partner or operate/manage another multilevel, network marketing, or party planning company organization.

SECTION 6 – RESPONSIBILITES OF CONSULTANTS

6.1 Change of Address, Telephone, or Contact Information

To avoid any disruption in business practices, the Consultant is responsible to notify Paparazzi of any changes to the contact information provided on the Consultant’s account. Most changes can be made online, but can also be done via phone through the Paparazzi Support Department.A Post Office Box (P.O. Box) is acceptable for a billing address, but not acceptable for a shipping address, as inventory packages will NOT be shipped using the USPS and will NOT be delivered to a USPS P.O. Box unless a delivery confirmation waiver is received. Paparazzi is not held liable for missing shipments, commission payments, or any action or delayed response as a result of inaccurate or outdated contact information on the Consultant’s account. This includes name, billing address, shipping address, telephone numbers, texting numbers, email address, and any other means of communication possible.

6.2 Changes to the Agreement

It is the Consultant’s responsibility to update or initiate any updates if there are any changes to the Agreement, including government ID numbers, applicant names, or business entities. These changes can be initiated through Paparazzi Support, and require that a newly executed and completed Agreement be submitted. There may be an additional $25 fee to change principles, business entities, or taxable government IDs on file.

6.3 Continuing Leadership

Any Consultant who sponsors another Consultant into Paparazzi must perform a bona fide assistance and training function to ensure that his/her organization is properly operating their Paparazzi business and that they are in full compliance with local and federal laws, and this Agreement. It is expected that Consultants will monitor the activities of their organizations and support full compliance with the Company’s polices contained within this Agreement. In any circumstances, where it is discovered by a Consultant that a member of their team may be in violation to this Agreement, they are to do all within their power to bring them back into compliance with this Agreement; if that is not possible or completed, they are to notify the Paparazzi Compliance Department immediately.

Consultants are expected to support, train, and mentor other Consultants in the organization to help them build success. It is expected that sponsoring Consultants be available to be contacted, attend meetings, and support their organizations. Failure to do so will result in a lack of personal success within the Company.

6.4 Providing Documentation

When enrolling a new Consultant, the sponsoring Consultant must be able to provide or ensure that they have access to, and have reviewed, the latest version of the Policies and Procedures, the Compensation Plan, and the Consultant Agreement before the new Consultant signs the Independent Consultant Agreement, or completes the process online.

6.5 Reporting Obligation

All Consultants have an obligation to report any policy violation that they may witness or be aware of to the Paparazzi Compliance Department. Failure to do so may result in compliance actions taken against them.

6.6 Laws and Ordinances

All Consultants must be aware of, and adhere to any local or federal laws and ordinances that may affect or be a part of their Paparazzi business or sales activities.

6.7 Federal Regulations

Certain federal regulations govern the direct sale of inventory, which includes Paparazzi Accessories. In order to comply with those regulations, Consultants must ensure the following information is provided on all sales receipts at each transaction:

a. Date of transaction;

b. Product issued (units purchased);

c. Name and address of selling Consultant; and

d. Signature of purchaser, indicating receipt of product.

They must also be aware of the Consultant’s return policy of the product. Consultants are required to issue sales receipts for the retail purchase of Paparazzi product, as well as to keep a copy for themselves for no less than two years from the transaction documented.

6.8 Adherence to Hostess Rewards Program

The success of any party planning organization rests with the success of the Hostess. “Hostess” refers to someone who has agreed to hold a party for their friends and associates, and have invited a Paparazzi Consultant to offer product at their home or via an online party. Incentivizing a Hostess to hold a party at their home or online is key to the success of any organization.

Therefore, Paparazzi has outlined the following as the minimum amount of compensation offered to Hostesses for hosting the party:

a. All Consultants are obligated to offer a 10% credit to the Hostess for the retail sales generated at their hosted party – preferably to be selected out of the inventory at the party. Hostesses of online parties will choose from current online inventory before the party is closed. The credit amount is determined from Retail Sales (not profit), and is exchanged for Retail Price ($5 USD).

To support and offset the cost for the Consultant to adhere to this minimum offering for their Hostess, Paparazzi supplements a Consultant’s personal inventory purchases with additional units that may be used to fill this obligation. Paparazzi strongly encourages Independent Consultants to increase and enhance their Hostess Rewards program for their own Hostesses – understanding that the more excited the Hostess is, the more excited the customers are, and the more sales are generated.

6.9 Reception of Product

When an order is received, it is the Consultant’s responsibility to do an immediate inventory of the product delivered to determine if there are any damaged or missing pieces from the invoiced order. Failure to notify Paparazzi within three business days of confirmed delivery of the shipment will cancel your right to request a return.

Any pieces that may be received that can be reasonably corrected using the Complete Jewelry Tool Kit included in each Starter Kit will not be considered returnable.

6.10 Lost or Stolen Orders

In the event that an order is shipped by Paparazzi and not received by the designated recipient, Paparazzi will initiate a claim through the associated courier. The courier’s investigation process can take up to ten (10) business days. If the courier determines that the package was delivered to the address provided and no signature was obtained, a replacement order may be sent at Paparazzi’s discretion. There is no guarantee of a replacement order being sent under these circumstances.

If excessive or fraudulent claims of missing deliveries are submitted by a Consultant, corrective action, including suspension and possible termination will be initiated.

6.11 Holding or Manipulation of Enrollments or Orders

A Consultant must never hold or manipulate the timing of an Independent Consultant’s enrollment or order. Doing so will result in the conclusion that such actions are in conjunction with Bonus Buying (see Section 5.19), and will be subject to a compliance review. Doing so also postpones the activity of the new Independent Consultant, and can damper an opportunity for them to succeed.

6.12 Actions of Household Members

If a member of a Consultant’s immediate household engages in activities that violate the Agreement (including these Policies), the Consultant will be considered to be in violation of the Agreement. This section also applies to any member of a business entity that is a business representative of Paparazzi as a Consultant.

6.13 Business Insurance

Paparazzi does not provide or offer any form of business or liability insurance for a Consultant’s business. Consultants are free to purchase such insurance for their business. Homeowners or automobile coverage usually does not provide coverage for any type of business related injury, theft, or damage.

SECTION 7 – Bonuses and Commissions

7.1 Bonuses and Commissions

A Consultant must be active (accumulate and/or purchase a minimum of 50 PV within a commission period) in good standing, and in compliance with the Agreement to qualify for bonuses and commissions. So long as the Consultant complies with the terms of the Agreement, Paparazzi shall pay commissions to qualified Consultants in accordance with the Compensation Plan and their qualifications. If at any time during a month a Consultant account is suspended for compliance or policy issues, their commission check for that month will be held until the Compliance Department determines a resolution to the issue.

If it is found that there was no violation, the check will be issued at that time. If the account is terminated as a result of proven violations, the commission will not be paid.

The minimum amount for which Paparazzi will issue a check or direct deposit is $20.00 (after a $2.50 processing fee for printed checks). If a Consultant’s earnings for the month total less than the aforementioned amount, those funds will be placed on their Paparazzi account to be added to the next commission payout cycle. Once the minimum amount has accumulated, the standard payout process will be triggered.

In the event that a check must be reissued due to misinformation out of the control of Paparazzi, an additional $2.50 will be charged and taken from the check amount.

7.2 Commission Times

Commissions are only paid in the form of checks or direct deposit, and are paid as a whole payment in relation to the activity within the last previously closed commission period. Commission periods (and qualification periods) begin the first day of every calendar month at 12:00 AM EST, and conclude the evening of the last day of every calendar month at 11:59 PM EST.

After a commission period is closed, a monthly audit and commission calculation begins. Final commission calculations will be posted (via the Virtual Back Office) around the 10th of the month, and the checks mailed and deposits made no later than the 20th day of the following month for which the commissions are being processed. Commission checks are only mailed to the mailing address on file, and are issued only in the primary name on file (personal or business).

7.3 Compensation Plan Adjustment

Paparazzi reserves the right to make any adjustments necessary to the Compensation Plan at its sole discretion with 30 days prior notice in writing. Such notice would be made via e-mail, and through any notifications in the Virtual Back Office.

7.4 Bonus Adjustments from Returns

In the event that a commission has been issued on the sale of product that is eventually returned or on inventory that is accepted back by Paparazzi, any bonuses or commissions that were calculated and paid on the initial sale of the inventory or products will be deducted from the month in which the refund or return took place. This may continue for subsequent months until the paid commissions are recovered from all Consultants up the tree which may have earned commissions from the initial sales of the refunded inventory.

7.5 Bonus and Volume Reports

All information provided by Paparazzi over the phone, online, or through any type of downline activity reports, including but not limited to personal and group sales volume (or any part thereof), and downline sponsoring activity is believed to be accurate and reliable. Nevertheless, due tovarious factors including the inherent possibility of human and mechanical error, the accuracy, completeness, and timeliness of orders, denial of credit cards and payments, returned product or inventory, credit cards and payment method chargebacks, the information is not guaranteed by Paparazzi or any person creating or transmitting the information. All sales volume information is provided “as is” without warranties, expressed or implied, or representations of any kind whatsoever. In particular, but without limitation, there shall be no warranties of merchantability, fitness for a particular use, or non-infringement.

To the fullest extent permissible under applicable law, Paparazzi and/or other persons creating or transmitting the information will in no event be liable to any Consultant or anyone else for any direct, indirect, consequential, incidental, special or punitive damages that arise out of the use of or access to sales volume information (including but not limited to lost profits, bonuses, or commissions, loss of opportunity, and damages that may result from inaccuracy, incompleteness, inconvenience, delay, or loss of the use of the information), even if Paparazzi or other persons creating or transmitting the information shall have been advised of the possibility of such damages. To the fullest extent permitted by law, Paparazzi or other persons creating or transmitting the information shall have no responsibility or liability or other theory with respect to any subject matter of this agreement OR terms and conditions related thereto.

Access to and use of the Paparazzi online and telephone reporting services and the Consultant’s reliance upon such information is at the Consultant’s own risk. If the Consultant is dissatisfied with the accuracy or quality of the information, their sole and exclusive remedy is to discontinue use of and access to Paparazzi’s online and telephone reporting services and their reliance upon the information.

7.6 Compensation Plan Calculations

All calculations within the Paparazzi Compensation Plan (qualification and bonus calculations) are based off of the Personal or Product Volume (PV) accumulated within such account or organization. This includes all ranks, commissions, bonuses, rebates, promotions, or any other form of rewards offered by Paparazzi within or outside of the Paparazzi Compensation Plan.

Paparazzi Compensation Plan is audited monthly in an attempt to ensure accuracy. Any errors that are discovered are to be reported to Paparazzi Support within 30 days of the publication of the commission run. Paparazzi has no responsibility in relation to any issues that are not reported within that 30 day period. Paparazzi does all due diligence to ensure accuracy in all calculations and payouts.

SECTION 8 – Payment & Sales Tax

8.1 Insufficient Funds

It is the Consultant’s responsibility to ensure that there are sufficient funds through the approved transaction type or credit card. If the funds or credit is not available, the system may not accept the Consultant’s order, or the orders of their organization. If the order payment is not resolved by the end of the commission period, the order will be canceled, and any lost commissions, qualifications, or business as a result of the lost order is the sole responsibility and liability of the Consultant.

8.2 Entered Orders

Any online orders that have been entered but not paid for will be voided after two (2) calendar days.

8.3 Sales Tax

In states where the Paparazzi products are subject to sales tax, the Consultant is charged for the sales tax at the full Retail Sales amount at the time of the wholesale purchase of inventory.

This is intended to ensure that each state tax agency is made whole on any potential sales from the transactions of that wholesale product. Paparazzi collects these taxes at the time of wholesale inventory purchase and remits it to the state on behalf of the retail sale that the Consultant may now have. The sales tax is charged at the local level of the location where the order is shipped.

Paparazzi also collects retail sales tax (based on shipping location) from customers that order online from the Paparazzi website.

This also allows the Paparazzi Consultant the option of charging their local taxes on their Customer transactions and recuperate that cost, or absorbing it into their business structure; while at the same time not bringing any uncovered sales tax liability on Paparazzi or the Consultant.

Paparazzi is required to remit sales tax this way.

8.4 Automated Payment Processing for Events

In the circumstance where Paparazzi offers a payment package for any event or experience ticket, the Consultant agrees to the terms proposed through the payment process. Tickets for Paparazzi events, shows, or trainings are subject to their individual terms and conditions. All Consultants must pay the full amount of the ticket after they have registered for the event, regardless of whether they attend or not. All automatic recurring payments, as designated and agreed to by the Consultant upon registration, must be completed and the ticket must be paid in full.

SECTION 9 – Warranties, Guarantees, Returns, and Repurchases

9.1 Manufacturer Defects

Paparazzi only warrants against manufacturer defects. Consultants are required to inventory their product within three days upon receipt and immediately report any defective products (in accordance with Section 6.9). There are times when small pieces of jewelry may be loose (i.e. jump rings) and only need a small adjustment; these are not manufacturer defects. Consultants are expected to report any issues to Paparazzi Support, and describe the issue to identify what might be done to resolve it. If indeed, it is determined that there is a manufacturer defect, the Paparazzi Support Representative will approve an RMA (Return Merchandise Authorization) Number for the defective pieces ONLY.

The Consultant will then be required to complete and submit a Return Request Form and send it, along with the defective merchandise to Paparazzi. Upon receipt, a credit for the amount of the original purchase price will be placed on the Consultant’s account. This credit can be accessed via the Back Office and can be applied to a future order with Paparazzi. Return shipping costs will be included in the amount of the credit if the return shipping method indicated on the Return Request Form was used. Personal Volume (PV) associated with the returned items will be retracted in the month that the return was received by Paparazzi.

9.2 No Warranty of Used Product

Paparazzi does not guarantee or warranty its product after it is removed from the packaging and/or used. Paparazzi Accessories are fashionable, trendy, and inexpensive. There is no intention or claim at the time of retail purchase of any life of the product, guarantee, or warranty.

Consultants are encouraged to have their own satisfaction offerings within their own business, but to never offer any type of product life guarantee by Paparazzi. Used or opened product will not be returnable to Paparazzi, whether by a Retail Customer or an Independent Consultant, unless the product falls under the manufacturer defects mentioned in Section 9.1.

9.3 Purchase Policy

Any Consultant who has an active account may purchase Paparazzi product as inventory to resell. Purchased Paparazzi product is the inventory of the Consultant, and is their responsibility to sell or move. Consultants should not purchase more than they reasonably believe they can resell. Upon purchase and opening of the product, the Consultant accepts the responsibility to sell that product, and remove any liability of Paparazzi to make any retail sales on their behalf. Product purchased for inventory carries no warranties (see Section 9.2) and in most circumstances may not be returned (see Section 9.4) and the purchasing Consultant accepts those liabilities.

9.4 Return Policy

As a result of the nature of the Paparazzi business, excess inventory from a show or a house party is not returnable. In relation to the nature of Paparazzi, fashion trends, and rotating inventory, once the product is purchased and is delivered, that item is not returnable unless it falls under the guidelines of “Manufacturer Defects” (see Section 9.1), and is identified within three days of receipt. Once a product package is no longer offered, returned inventory is no longer available to be restocked and therefore resold. Any excess products from a show or party that the Consultant may have ordered, are encouraged to be used at the next party or show or as Hostess gifts. As a result of the fast change of fashion, the potential handling of the product, and the inability to track single pieces, or to resell returned items that have already rotated out of the online catalogue, most jewelry that has been received may not be considered resalable, and therefore should not be requested to be returned.

Any and all volume from the returned product will be retracted from the sales organization if within a current commission period, or any commissions issued would be retracted back from the upline per Section 7.4.

9.5 Return of Enrollment

Consultants have thirty (30) days from the time of their enrollment to rescind the Independent Consultant Agreement. As long as Paparazzi is notified within the first 30 days from the time of the initial enrollment, Paparazzi will refund the full amount of the Starter Kit purchased provided certain conditions are met. For a full refund, all items in the kit must be unopened, unused, and un-displayed. If some items have been opened, a full refund may be given for any items in the kit that are unopened, unused, and undisplayed. All refunds are subject to a review of merchandise once it is received by Paparazzi. A Returned Merchandise Authorization (RMA) number is required for all returns. RMA numbers can be obtained by calling Paparazzi Support.

Returning items must be received no later than 15 days from the date on which the Consultant notifies Paparazzi of their intent to terminate their Independent Consultant Agreement, or 45 days from initial enrollment date (whichever comes first).

9.6 Inventory Buy Back

In the event that a Consultant wishes to terminate their account, and request that any remaining inventory be purchased back by Paparazzi, only unused, not previously displayed, unopened, never previously worn, and only those with the original Paparazzi tags would be considered for inventory buy back. Items that don’t carry PV are not eligible for buy back. In such an event, the inventory buy back, as a result of the changing world of fashion, will be at a discounted rate of $2 per acceptable unit piece (with a retracted 2 PV for each unit). Acceptable pieces will be determined at the sole discretion of Paparazzi and only after review and inspection upon the return. An RMA number issued and approved by Paparazzi Support is required prior to any inventory buy back returns taking place – or the inventory buy back will not be honored. The full accumulation of the returned product volume will be retracted from the organization as in Section 7.4, and the most recent commissions which may have been earned by the terminating Consultant may be retracted or removed from the returning funds as a result of the retracting volume which may have qualified them within the Paparazzi Compensation Plan for previous awarded bonuses.

9.7 Refused Deliveries

In any circumstance where a Paparazzi inventory order is refused at the door and returned to Paparazzi, the ordering Consultant will be liable for a $15.00 refusal fee (issued by the delivering service) as well as a 10% restocking fee to restock the unopened inventory. If an order is cancelled after it has left the warehouse, a $15 recall fee will be charged to the Consultant.

9.8 Business Autoship or Fashion Fix

When a Consultant subscribes to receive the monthly business autoshipment (hereafter referred to as the Fashion Fix), the Consultant acknowledges that it is an optional service, and is in no form required by this document, literature, or training. The Fashion Fix is designed to help the Consultants in the following ways:

a. Contributing to the minimum monthly level of Personal Volume (50) required to be considered active and eligible for commissions;

b. Maintain new inventory on hand through regular inventory shipments.

Due to the nature of fashion as well as Paparazzi’s inventory process, when the Fashion Fix option is selected by the Consultant, the Consultant acknowledges the following:

a. There is no guarantee, option, or perception that any single piece, accessory, or item will be part of the Fashion Fix;

b. That each package is selected with the intent to increase inventory of the Consultant by the amount specified above, not to increase any particular item or accessory;

c. That due to the nature and purpose of the program, Fashion Fix packages are nonrefundable, non-returnable, or non-disputable, for any reason, including but not limited to:

selection of items received, color of items receive, ration of any particular accessory, or satisfaction of the items received. Only items that fall under the guidelines of a manufacturer defect and falls under the guidelines of Section 9.1 will be considered for potential return.

9.8.1 Method of Payment for Fashion Fix

The Fashion Fix must be paid for by credit card. The credit card on file for the Fashion Fix will be processed on the 20th of the month. If the card is declined for any reason, the Consultant will receive an email notifying them of the decline. The Consultant will then have until 11:59 PM ET on the second business day following the decline to correct any issues there may be with their order. On the third business day, all cards that were declined will be processed a second time. If the funds transfer successfully, the order will be processed within three business days and sent to the Consultant. In the event that the second attempt to charge the card designated for the order declines, the Fashion Fix order for that month will be cancelled. It is the responsibility of the Consultant to contact Paparazzi Support to change their credit card information on their order. In addition, the Consultant will need to make the same changes to the card on their Fashion Fix profile. Changing the card on the monthly order will not make a change to the profile.

One credit card decline on your Fashion Fix profile will not affect your enrollment in the program. However, any Consultant having two consecutive months with a declined card will lose their enrollment in the program and their subscription will be cancelled. If a Consultant wishes to reenroll following cancellation, they may do so through their Back Office or by contacting our Support Team at (855) 697-2727 or via email: support@paparazziaccessories.com. Re-enrolling in the program is subject to availability.

9.8.2 Fashion Fix Waiting List

Enrollment in the Fashion Fix is limited by availability. A Consultant can request to be placed on the waiting list for Fashion Fix enrollment anytime by contacting Paparazzi Support. As spots in the Fashion Fix become available, Consultants will be subscribed to the Fashion Fix in the order in which they were added to the waiting list. When a Consultant is subscribed to the Fashion Fix from the waiting list, they will be notified via email and their credit card will be charged when the next Fashion Fix processes (see Section 9.8.1).

9.9 Sold Out Items

If an item that has been purchased sells out before an order is fulfilled, the Consultant will be notified via email. This email, along with the order’s packing slip, will list each item from the Consultant’s order that has sold out.

A credit for these items (and applicable sales tax) will be placed on the Consultant’s account. This credit can be accessed through the Consultant’s Back Office and can be applied towards a future order. A replacement will not be offered.

9.10 Cancelling or Rerouting of a Delivery

If a Consultant requests an order be rerouted or cancelled, a non-refundable $15 rerouting fee will be assessed.

SECTION 10 – Dispute Resolution and Disciplinary Proceedings

10.1 Disciplinary Sanctions

A Consultant’s violation of the Agreement, any of its components, these Policies and Procedures, or the violation of any common law duty, including but not limited to any applicable duty of loyalty, any illegal, fraudulent, deceptive or unethical business conduct, or any act or omission by a Consultant that, in the sole discretion of the Company may damage its reputation or goodwill, may result, at Paparazzi’s discretion, in one or more of the following measures being imposed on the Consultant:

a. Issuance of a written warning;

b. Requirement that the Consultant take immediate corrective measures;

c. Imposition of a fine, which may be withheld from bonus and commission checks;

d. Loss of rights to one or more bonus and commission checks;

e. Paparazzi may withhold from a Consultant all or part of the Consultant’s bonuses and commissions during any period of investigation involving an alleged violation of the Agreement. If the Consultants business is terminated for disciplinary reasons they will lose all rights and will not be entitled to recover any held commissions;

f. Suspension of the individual’s Agreement for one or more pay periods;

g. Involuntary termination of the offender’s Agreement;

h. Any other measure expressly allowed within any provision of the agreement;

i. In situations deemed appropriate by Paparazzi, the Company may institute legal proceedings for monetary and/or equitable relief.

In the event that a written warning is issued, with specific request of compliance or action, such agreed to terms between Paparazzi and the disciplined Consultants are considered an appended agreement to their Consultant Agreement, and a violation of such terms may warrant, at Paparazzi’s full discretion, any or all of the actions detailed above.

All disciplinary actions are considered confidential and should not be discussed with uninvolved parties. Resolutions and outcomes are not required to be made public knowledge.

10.2 Grievances and Complaints

When a Consultant has a grievance or complaint with another Consultant regarding any practice or conduct in relationship to their respective Paparazzi business, the complaining Consultant should first report the problem to his/her Sponsor who should review the matter and try to resolve it with the other party’s upline Sponsor. If the matter cannot be resolved, it must be reported in writing to Paparazzi Support. Paparazzi Support will review the facts and resolve the issue at the sole discretion of the Compliance Department.

10.3 Arbitration and Jurisdiction

Any dispute or claim arising from or relating to the Agreement (including these Policies and Procedures), or any other claim or grievance against Paparazzi in any form whatsoever, including but not limited to, economic losses, personal injury, property damage, will be subject to mediation at Paparazzi’s corporate address using a neutral mediator of Paparazzi’s choosing. In the event that Paparazzi and the Independent Consultant are unable to resolve their dispute through mediation, Paparazzi and the Independent Consultant will be subject to final and binding arbitration to be held in Salt Lake City, Utah.

The arbitration will take place before a panel of three arbitrators to be selected as follows: the Independent Consultant shall select one arbitrator, Paparazzi shall select one arbitrator, and the selected arbitrators will select the third arbitrator. The third arbitrator shall be an attorney. The party initiating the arbitration will identify its arbitrator in its written demand for arbitration to the other party. The other party shall identify its arbitrator within five (5) days of receipt of the notification of intent to arbitrate, and the third arbitrator must be selected within five (5) days of the appointment of the second arbitrator. Paparazzi shall pay the fees of its selected arbitrator, the Independent Consultant shall pay the fees of his/her selected arbitrator, and Paparazzi and the Independent Consultant shall pay equal shares of the third arbitrator’s fees. The dispute will be subject to rules of arbitration agreed upon by the majority vote of the arbitrators and will be communicated to the party within ten (10) days after the arbitration panel has been completed. The prevailing party in any arbitration proceeding shall be entitled to receive from the losing party all costs and expenses of arbitration, including legal and filing fees. The decision of the arbitrators shall be final and binding on the parties and may, if necessary, be reduced to a judgment in any court of competent jurisdiction.

The decision of the arbitrators shall be final, and there shall be no right to appeal such decisions in any court or judicial system. This agreement to arbitrate shall survive any termination or expiration of the Agreement. Nothing in these Policies and Procedures shall prevent Paparazzi from applying to and obtaining from any court having jurisdiction a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction or other relief available to safeguard and protect Paparazzi’s interest prior to, during, or following the filing of any arbitration or other proceeding or pending the rendition of a decision or award in connection with any arbitration or other proceeding. Additionally, any dispute a Consultant has with Paparazzi for any act or omission relating to or arising from this Agreement, must be brought within one year from the date of the alleged misconduct and by accepting this Agreement, said Consultant waive all claims that any other statute of limitation applies.

Further, by accepting this agreement, the Consultant agrees and covenants not to file suit against Paparazzi, any of its affiliates, subsidiaries, officers, directors, or employees for any claim or grievance the Consultant may have arising from the status as an Independent Consultant of Paparazzi.

Jurisdiction and venue of any matter not subject to arbitration shall reside in Washington County, in the state of Utah unless the laws of the state in which the Consultant resides expressly require the application of its laws, in which case that state’s law shall govern all issues related to jurisdiction and venue. The Federal Arbitration Act shall govern all matters relating to arbitration.

The laws of the State of Utah shall govern all other matters relating to or arising from the Agreement unless the laws of the state in which a Consultant resides expressly require the application of its laws.

10.4 Product Liability Claims

Paparazzi maintains insurance to protect the Company against product liability claims. Paparazzi’s insurance policy contains a “Vendors Endorsement” which extends the coverage to Independent Consultants so long as they are marketing Paparazzi products in accordance with applicable laws and regulations and the Agreement. Paparazzi’s product liability policy does not extend coverage to claims that arise as a result of a Consultant’s misconduct in marketing, reselling, or representing the product or company.

SECTION 11 – Inactivity and Cancellation

11.1 Voluntary or Involuntary Cancellation

As long as the Consultant remains current (see activity requirements outlined in Section 3.7), and complies with the terms of the Agreement and these Policies and Procedures, Paparazzi will continue to pay the Consultant all earned bonuses and commissions in accordance with the Compensation Plan.

Bonuses and commissions constitute the entire reward for the Consultant’s efforts in generating sales and all activities related – including building and support of a downline organization. If a Consultant fails to meet the minimum inventory purchases or sales requirement for a period of twelve consecutive months (with less than 200 PV), or if the Agreement is voluntarily or involuntarily terminated, the Consultant shall be deemed to have waived all their rights, title, claim, privileges, or interest to the downline organization that they operated, and to any bonuses or commissions for the sales generated from that organization. Additionally, the Consultant will lose the right to represent Paparazzi, the right to sell Paparazzi products and the right to receive any further compensation, bonuses, commissions, or other income resulting from Paparazzi activities.

11.2 Cancellation Due to Inactivity

In order to keep a Consultant’s Agreement and account active, the Consultant must have accumulated at least 200 PV within a rolling 12 consecutive month window. If at any time the Consultant has a period of 12 consecutive months wherein the 200 PV minimum is not reached,

the Agreement will be canceled; the account and position terminated, and the measures in Section 11.1 will take effect. Paparazzi will not provide or issue any written confirmation of the cancellation.

It is the consultant’s responsibility to maintain and monitor these PV requirements. Paparazzi is not required to provide notification prior to or upon cancellation due to inactivity.

11.3 Voluntary Cancellation

The Consultant has the right to cancel their Consultant Agreement at any time, regardless of reason. Cancellation must be submitted in writing to Paparazzi Support. Any cancellation notice must include name, address, Paparazzi Consultant ID, and a signature of the primary account representative. At the conclusion of the Agreement, all Sections that specifically denote a life beyond the Agreement are still enforceable.

11.4 Involuntary Cancellation

Any violation of the terms of the Agreement, including any amendment that may be made by Paparazzi at its sole discretion, may result in any of the sanctions listed in Section 10.1, including involuntary termination or cancellation of the Agreement at the sole discretion of Paparazzi.

Paparazzi reserves the right to cancel any or all Consultant Agreements upon thirty (30) days written notice in the event that it elects to. In any circumstance where there is an Involuntary Cancellation of an Agreement on a position which previously had generated a minimum of $50 from the Compensation Plan; that account will be terminated, but will not be removed from the Paparazzi organization tree – maintaining the current structure of the organization, and protecting the integrity of the original organization (see Section 4.6 for further detail).

11.5 – Enrollment Restriction

Any Consultant that has their Consultant Agreement terminated, whether voluntarily or involuntarily, will not be eligible to re-enroll as a Consultant with Paparazzi for a period of 12 months. This 12-month restriction applies to the Consultant as well as those in their household.

---

Marketing and Compensation Plan

Personal Volume (PV)

The Paparazzi Compensation Plan uses points instead of dollars when determining commissions earned. Personal Volume (PV) is assigned to all commissionable products at the rate of 2 PV for every $5 (retail price). Each standard accessory has a point value of 2 PV, while each Zi Collection necklace carries 10 PV.

Retail Profit

As a Paparazzi Independent Consultant, you are able to purchase inventory for your shows or parties at wholesale pricing, and sell that same inventory at the suggested full retail price. This gives you an immediate 35% – 45% commission.

You will also receive Retail Profit on all inventory purchased by your personally sponsored customers through your replicated website. All Retail Profit earned will be calculated and processed once a month and paid through the regularly scheduled commission runs.

Show Rebate

For those Independent Consultants who do larger shows, Paparazzi rewards you! When a Consultant purchases 1000 PV or more on a single order, a Show Rebate of 10% is processed and included in that month’s commission check. The Show Rebate is paid in lieu of Hostess Rewards being added to the order.

Business Building Bonus (BBB)

Every time you personally sponsor or enroll a new Independent Consultant into Paparazzi you will earn 15% of their initial Starter Kit purchase (PV) as long as you are active.

Unilevel Bonus

Earn up to three levels of commissions on your team of Consultants as you progress through the Paparazzi Ranks and Compensation Plan. Earn between 5% and 10% of your organization’s activities, just for supporting and training them in finding their own success. Your first level includes all of your personally-sponsored Consultants.

When your personally-sponsored Consultants sponsor new Consultants of their own, it creates your second level. You can have an unlimited number of levels within your organization by continuing this pattern. (See Rank and Bonus Chart)

Generation Bonus

As you begin to develop stronger leadership within your team and qualify as an Executive Director or higher, you can earn an additional bonus on up to three Generations of your organization.

A generation begins at every Executive Director or higher and includes all Consultants down to and including the next Executive Director or higher below. (See Rank and Bonus Chart)

Legacy Bonus

As an A-Lister or higher, you can earn an additional 1% to 2% on the volume generated in up to three Legacies within your organization. A Legacy is created when you become an A-Lister and it includes all Consultants down to and including the next A-Lister or higher below you. (See Rank and Bonus Chart)

Infinity Bonus

As a Luxe Jetsetter, you can earn an additional .5% on the volume generated from your ENTIRE team down to and including the next Luxe Jetsetter or higher. When you reach the rank of Impressionista, this payout increases to 1%. Access a second Infinity Bonus of .5% on the volume generated between the first Luxe Jetsetter (or higher) and the next when you become an Iconic Impressionista.

Cash Bonus

When a Consultant arrives at the top ranks for the first time by maintaining the required qualifications for two consecutive months, a Cash Bonus is paid:

Luxe Jetsetter – $25,000

Impressionista – $50,000

Iconic Impressionista – $100,000

About Author