Page 15 - SG_English HandBook

Qualifications to Become an
Independent Distributor / Direct Selling Organization

1.4 Inheritance of Distributorship
• The distributorship rights belonging to the Independent Distributor can only be inherited/transferred if the Independent
Distributor is an Area General Manager. If the Independent Distributor is not an Area General Manager, his or her distributor-
ship right shall be terminated upon death. If the Independent Distributor is an Area General Manager, his or her legal heir or the
executor (hereinafter collectively referred to as “Successor”) shall notify the Company in writing within six (6) months from the
death of the Independent Distributor and provide the death certificate or Grant of Probate or Grant of Letters of Administration
and/or any other relevant documents for the succession application. Upon the Company’s review and approval of the relevant
information and the Successor’s qualification, all legal rights belonging to the deceased Independent Distributor shall be
assigned to the Successor.
• In the event there are several successors, one of them shall be appointed within six (6) months after the death of the Indepen-
dent Distributor, and provide the basic information of the appointed person, written consent of the other successors or legal
heirs or other verified appointed parties and the aforesaid documents to the Company for review. Upon the Company’s review
and approval, all legal rights belonging to the Independent Distributor will be transferred to the appointed person.
• In the event the Successors fail to designate an appointed person or submit the necessary documents within six (6) months from
the death of the Independent Distributor, the Company reserves the rights to reject the succession application and all distribu-
torship rights shall then be terminated forthwith.
• The Successor shall not be a distributor of other companies save for Nefful International. If the Successor is, at the material time
an Independent Distributor of Nefful International, upon the Company’s review and approval of the succession application, the
Successor shall be deemed to have surrendered his or her prior distributorship rights. If the Successor is not an Independent
Distributor of Nefful International, the Successor shall apply to be an Independent Distributor in accordance with Section 1.1.

1.5 Transfer of Distributorship
• The Independent Distributor must be an Area Manager or above to make an application to the Company for the transfer of
distributorship rights. Before the Company’s review and approval of the application, the transferee will not be considered to
have received the distributorship rights; upon the Company’s review or approval of the application, all legal rights and
obligations of the transferor shall automatically be terminated.
• In the event the Company is of the view that the transfer is fraudulent or illegal or breaches this Business Handbook and any
applicable laws, the Company reserves the right to reject the transfer application.
• If the Independent Distributor is subject to a court enforcement order, executive orders from competent authorities or
injunctions, upon the notification to the Company and during the application for transfer of the distributorship rights, the
Company will not approve such application if it affects the right of a third party.

1.6 Rescission of Agreement /Termination of Agreement

1) An Independent Distributor may, within fourteen (14) days from the date of the agreement, rescind or terminate the agreement
by submitting the Termination Notice to the Company.
2) The Company may accept the Independent Distributor’s application for the products to be returned, and repay the
Independent Distributor in accordance with this clause and subject to the deductions stated herein, within sixty (60) days after
the agreement is effectively rescinded or terminated. The Company may collect the returned products or the Independent
Distributor may personally return the products to the Company, whereby the Company shall refund the full purchase price of
the products to the Independent Distributor and all commissions or benefits in kind paid out to the Independent Distributor in
relation to the returned products. If the returned products are to be collected by the Company, the Company is also entitled to
deduct any travelling or handling expenses incurred.
3) The Independent Distributor may rescind or terminate the agreement by submitting the Termination Notice to the Company,
notwithstanding that the aforesaid sixty (60) days termination period from the date of agreement has lapsed. Within sixty (60)
days of the termination of the agreement, upon the application to the Company to return the products and except for the
products that have been in the possession of the Independent Distributor for more than six (6) months from the date of invoice,
the Company shall purchase the returned products from the Independent Distributor at 90% of the amount paid for the
products, subject to any deductions by the Company for the commissions or benefits in kind paid out to the Independent
Distributor and in the event the returned products are to be collected by the Company, the Company is also entitled to deduct
all travelling and handling expenses incurred.

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