3.1 Distributorship with DXN is for a lifetime and no yearly renewal of distributorship is necessary provided that the Distributor is required to have at least one (1) personal purchase transaction with PV in each calendar year. Personal purchase transaction refers to purchase of DXN Product(s) with PV, regardless of amount, made in the Distributor’s own name.
3.2 Failure to comply with the above requirement shall render the distributorship of the concerned to lapse on 31st December of that calendar year without need of further notice. Any reinstatement may be done between 1st January until 31st March on the following year of expiry in a single cash bill subject to the following: - (a) the minimum monthly PPV required for bonus has been achieved by the Distributor; and (b) the reinstatement is endorsed by the EDC and approved by the management of DXN
3.3 For new distributorship joining between 1st October and 31st December, the expiry date shall be extended until 31st December of the following year.
3.4 Distributor whose distributorship has lapsed may re-register as a new Distributor under the same or another Sponsor however; he will be considered and deemed as a new Distributor and therefore, not entitled to his former networks.
3.5 The reinstatement would be effective upon due approval from DXN's management. In other words, the reinstatement would not be backdated. Purchases, if any, made after lapse of distributorship would be accumulated and encoded according to marketing plan in the month of reinstatement.
3.6 A Distributor who fail to reinstate his distributorship within the above-said grace period may not be entitled to reinstate his former network upon their re-registration after the grace period.
3.7 A Distributor’s distributorship shall be terminated if he (or any one of the spouse/ partner/ party/ member of the company including proxy) is directly or indirectly involved in any of the disciplinary cases such as:
(a) sponsoring other Distributors in an improper / invalid manner;
(b) changing the selling price of a product without obtaining prior approval of DXN;
(c) involved in other direct sales companies or any company having direct competition with DXN;
(d) in breach of DXN Rules and Regulations, Code of Conduct, DXN Marketing Plan or any of its policies;
(e) conducting any activities that directly or indirectly will bring negative effects to DXN or affect DXN's goodwill;
(f) selling or distributing other country's Products in another country which DXN's market has been established ;
(g) delivering, distributing or selling DXN's Products of one country to another country (which DXN's market has been established) without written approval from DXN;
(h) making false claims relating to the Product(s) or the DXN Marketing Plan.
... The Conditional Life Distributorship Policy.