Code of Conduct and Ethical Standard

Pursuant to the company’s core values of Credibility, Honesty, Equality, Resiliency, Sincerity and Humility, (CHERISH)
All independent distributors are strictly enjoined to observe the following:


CODE NO. 1

Independent Distributors shall at all times, remain loyal to the company. They shall follow and observe faithfully all its policies. They shall refrain from committing acts prohibited by the company. They shall not join, represent, associate with, sponsor, or recruit for competing companies, business groups, partnerships or individuals, either locally or abroad. They shall not introduce, present, promote, offer, or sell, in any form or manner the products, services, businesses, marketing programs and plans of a competing company.

PENALTIES

FIRST OFFENSE: One (1) month deactivation of all Independent Distributor Tracking Center.
SECOND OFFENSE: Perpetual deactivation of all Independent Distributor Tracking Center.


CODE NO. 2

All Independent Distributors are strictly enjoined to be honest in their conduct and dealings. They shall not make any written or oral remarks which are derogatory or defamatory, nor make any statement in any form that discredits the company, its centers or any of its service branches. They shall respect and not malign the credibility of the company’s officers and employees.

PENALTIES

FIRST OFFENSE: One (1) month deactivation of all Independent Distributor Tracking Center.
SECOND OFFENSE: Perpetual deactivation of all Independent Distributor Tracking Center.


CODE NO. 3

All independent distributors are strictly enjoined to conduct business in a professional manner. As a professional, he/she shall not utter false statements in the course of his/her work; he/she shall not commit misrepresentation, exaggeration or disinformation; neither shall he/she make vain promises, introduce spurious products or services, circumvent the marketing plans or programs of the company nor commit any act that contravenes the tenor and the purposes thereof.

PENALTIES FOR CODE 1 TO 3

FIRST OFFENSE: One (1) month deactivation of all Independent Distributor Tracking Center.
SECOND OFFENSE: Perpetual deactivation of all Independent Distributor Tracking Center.


CODE NO. 4

All Independent Distributors are strictly enjoined to deal honestly with their fellow independent distributors. They shall refrain from committing the following acts:

a. Imitating or counterfeiting any handwriting, or signature;
b. Causing it to appear that a distributor has participated in any act or activity when he did not in fact so participate;
c. Inserting untruthful statements in a narration of facts such as those in the affidavit, deed and other documents similar thereto;
d. Altering true dates;
e. Making any alteration or intercalation in a genuine document which alters or changes its meaning;
f. Issuing in an authenticated form a document purporting to be a copy of an original document when no such original actually exists.

PENALTY

FIRST OFFENSE: Perpetual deactivation of all Independent Distributor Tracking Center.


CODE NO. 5

All Independent Distributors are strictly enjoined to observe humility and respect towards fellow independent distributors, officers and employees of the company. Rudeness, disrespect and discourtesy have no place in the organization.

PENALTIES

FIRST OFFENSE: One (1) month deactivation of all Independent Distributor Tracking Center.
SECOND OFFENSE: Perpetual deactivation of all Independent Distributor Tracking Center.


CODE NO. 6

All Independent Distributors are strictly enjoined to observe A sense of equality and fairness toward THEIR fellow independent distributors by observing the 6-month cooling-off period rule wherein an independent distributor has 6 months from presentation of the marketing plan or program of the company and signing of any document towards distributorship by the prospective distributor, within which another distributor is prohibited from interfering with, intervening with or committing any act which will alienate said prospective distributor from the first independent distributor.

Distributors are reminded to observe the said 6-month cooling off period rule where a prospect may sign a Distributor Application Form (DAF), and provided that the sponsoring Independent Distributor validates the same with the Staff-in-charge, either in the Head Office or any Royale Branch nationwide/ Royale affiliate companies worldwide. The date stamped on the DAF shall serve as the basis for determining the 6-month period.

PENALTIES

FIRST OFFENSE: The independent distributor who interfered with, intervened with or alienated the prospective distributor within the 6-month period to the prejudice of the first distributor shall suffer the penalty of one (1) month deactivation of all Independent Distributor Tracking Center or IDTC with forfeiture in favor of the company of all the benefits, privileges, commissions and other remunerations either monetary or in kind, which accrued at the time of the commission of the violation. On the other hand, the IDTC of the prospective independent distributor who later became an independent distributor shall be placed in the sales group of the first distributor;

SECOND OFFENSE: Perpetual deactivation of all the IDTC.


CODE NO. 7

Cross Lining/ Cross Sponsoring:

Cross-Sponsoring also known as pirating or poaching is defined as the registration of an Independent Distributor who already has a current Independent Distributor Agreement on file or on record, or who has had such an agreement covered by the six (6) month rule (please refer to Code No. 6), to a different line of sponsorship.

Actual or attempted Cross Lining/Cross Sponsoring is strictly prohibited. Cross Lining shall also be deemed to include any act that tends to circumvent the company policies but produces the same effect. Violation of this prohibition may result in the termination of both the newly placed Distributor as well as the Distributor who sponsored or attempted to sponsor said new Independent Distributor.

For purposes of establishing Cross Lining/ Cross Sponsoring, Spouses shall automatically belong to the same sponsor group or line. Cross Lining through the use of dummies whether real or fictitious persons is also prohibited.

Cross sponsoring shall be penalized in the following manner:

FIRST OFFENSE: One (1) month deactivation of all Independent Distributor Tracking Center.
SECOND OFFENSE: Perpetual deactivation of all the IDTC.


CODE NO. 8

All Independent Distributors shall not commit any fraudulent act or false pretenses to the prejudice directly or indirectly of the company or fellow distributor. These acts are the following:

a) Using a fictitious name, or dummy for registration or sponsoring purposes;
b) By altering the quality, fineness or weight of the product or any product of the company;
c) Issuing a check to a fellow distributor or to the company or incurring obligation to both, without or with insufficient funds to cover the amount of the check or evading the performance thereof or any obligation after demand.

PENALTY

FIRST OFFENSE: Perpetual deactivation of all Independent Distributor Tracking Center.


CODE NO. 9

All intellectual property rights for products and services of the Company shall remain the exclusive property of ROYALE. Intellectual property shall include copyrights, trademarks, service marks, trade names and other intellectual property rights. Unauthorized use of the company’s intellectual property is absolutely prohibited. Any use of ROYALE’s trademarks and logos must be cleared in advance with and have the written consent of the Management. Independent Distributor who violated this shall be liable to the Company for any damages arising out of the unauthorized use of the Company’s trade names, trademarks, copyrights, and other intellectual property rights, in any form except as specifically authorized by these Policies and Procedures or as otherwise approved in writing by ROYALE.

However, any independent distributor need not to secure an approval from ROYALE as long as the following disclaimer is always included in the publication material which states:

“DISCLAIMER: This literature/ marketing tool is not an official publication of ROYALE or any of its affiliate company. This literature/ marketing tool is personally designed by (please indicate name of independent distributor). For ROYALE’s official publication, please visit the website www.royalebusinessclub.com.”

PENALTY

FIRST OFFENSE: Written Reprimand
SECOND OFFENSE: One (1) month deactivation of all Independent Distributor Tracking Center.
THIRD OFFENSE: One (1) month deactivation of all Independent Distributor Tracking Center.


CODE NO. 10

All Independent Distributors shall be provided a retail price of company products. Royale Independent Distributors may sell Royale products at whatever price they and their customers agreed upon but not below the Retail Price (SRP). This includes but not limited to “free” products or any other special pricing or incentive that would fall below the Retail Price. No distributor shall offer for sale Royale products together with the products of any other company.

PENALTY

FIRST OFFENSE: Written Reprimand
SECOND OFFENSE: One (1) month deactivation of all Independent Distributor Tracking Center.
THIRD OFFENSE: Perpetual deactivation of all IDTC.


CODE NO. 11

Independent distributors are not allowed to import/ export products to a country with an existing affiliate importer/exporter and/or an exclusive distributor. Any act of importing/ exporting Royale products to a country with an existing affiliate importer/ exporter and/or an exclusive distributor is considered a violation of the Code of Ethics and shall be punished accordingly. However, Independent Distributors may still import/ export Royale products to countries without an existing affiliated importer/ exporter and/or an exclusive distributor provided that the information you will be using is your own company name/ identity as the shipper/ consignee and/or recipient.

PENALTIES:

FIRST OFFENSE: Three (3) month deactivation of all Independent Tracking Center.
SECOND OFFENSE: Perpetual deactivation of all IDTC.