ELKEN DISTRIBUTOR’S RULES & REGULATIONS

 

The following Elken Distributors’ Rules & Regulations are implemented with the purpose of safeguarding the rights and regulating the obligations of its Distributors rather than restraining their independent business activities. In order to mould yourself to be a responsible and ethical Elken Distributor, you must understand and abide by the Rules & Regulations, which have the objective of building a healthy business networking environment for your long term and profitable business at Elken, promoting unity and positive harmony among fellow Distributors, and between Distributors and the Company. Your strength and success as an Elken Distributor is a collective effort, founded upon the enduring partnership of commitment and trust that exists between the Company and our Distributors.


It is the responsibility of each Distributor to (i) read, understand, adhere to and ensure that he/she is aware of and operating under the most current version of the Rules & Regulations; (ii) update their contact details and correspondence/e-mail addresses as the Company will send communications to the Distributor’s last known address and contact details as captured in its database. Each Distributor agrees that the relationship between a Distributor and the Company is entirely contractual. Accordingly, the Company will not recognise any claim by a Distributor that the relationship is or has been quasi-contractual, has arisen by implication from any continuing practice or course of action, has been verbally authorised by any employee of the Company in contradiction of the Rules & Regulations or policy, or is otherwise implied in fact or in law.


The Elken Distributors’ Rules & Regulations in their present form and as amended by the Company from time to time are incorporated into and form an integral part of the Distributor Application Form and constitute part of the agreement between the Company and the Distributor (“Agreement”).

  1. Eligibility to Become a Distributor

    1. Any individual who is of legal age residing in Malaysia, Singapore and Brunei can apply to be an Elken Distributor by completing the Distributor Application Form manually or via e-registration. Any application in the name of a company or a third party will not be accepted.

    2.  

    3. The Company reserves the right to reject any application without assigning any reason whatsoever.

    4.  

    5. A Distributor of the Company is an independent contractor and shall not represent himself to others as a franchisee, partner, agent or authorized representative of the Company and accordingly shall not have the right to negotiate or conclude any contract on behalf of the Company or hold himself/herself as having such a right unless Company’s prior written consent.

    6.  

    7. All applications must be sponsored by an existing authorised Distributor.

    8.  

    9. The distributorship of an unmarried Distributor shall be limited to himself/herself only and he/she shall not have any other partner.

    10.  

    11. A legally married couple is only allowed to apply for one distributorship.

 

  1. Bonus Payment

 

    1. All monthly computed Bonuses payable under Elken’s Marketing Plan are based on the sales of Company’s products and not through recruitment or rank advancement and on SV month.

    2.  

    3. Monthly Bonus Cheques, excluding those for Year-End Bonus, will be issued on or before the 28th of the following month. In the event of unforeseen circumstances, there may be a few days of delay due to external factors beyond the Company’s control.

    4.  

    5. Upon receiving their monthly Bonus Statements, Distributors should check to ensure the figures are accurate. Any queries should be made within 14 days from the issuing date of the statements, failing which the Bonus Statement is deemed correct.

    6.  

    7. The Company shall be entitled to adjust all bonuses paid or to be paid as a result of returned/refund of products and the bonuses shall be adjusted accordingly in Distributor’s monthly statement.

 

  1. Rectification Procedure For Violation of the Rules & Regulations

 

    1. Violation of the Rules & Regulations is a serious issue and constitutes a breach of the Agreement by the Distributor. It is likely to cause a negative impact not only on the involved Distributor’s business, but also of other Distributors’ businesses. At the same time, it may cast a dishonourable image and negative impression on the Company, its Distributors, business partners, officers, shareholders, Board of Directors and agents to the media, relevant authorities and general public.

    2.  

    3. The Company provides guidance and advice in rectifying any violation and when the severity of the situation warrants, it shall take appropriate action against the Distributors involved. In the event of violation, the following procedure shall be observed:

    4.  

      1. Upon any violation of the Rules & Regulations, a written complaint has to be lodged immediately with the Company. The complainant may have to fill in the Customer Service Complaint/Request Form, giving details and evidence pertaining to the nature of the alleged violation. The complainant must also inform his/her upline about the complaint lodged against the Distributor concerned.

      2.  

      3. Upon receiving the complaint, the Company shall notify the Distributor concerned, demanding a swift response and give him/her the opportunity to explain himself/herself regarding the alleged violation.

      4.  

      5. In the event the Company finds that the information provided by both the complainant and/or the Distributor concerned is inadequate, the Company reserves the right to request for more details from them. The Company may at any point in time withhold commissions under the marketing plan and whatever product campaigns and incentives, or withdraw facilities and privileges of the Distributor pending the final outcome of the investigation.

      6.  

      7. Upon securing all details pertaining to the alleged violation as claimed by the complainant, the Company shall talk to the Distributor concerned, ensuring that the violation is not repeated. If necessary, the complaint lodged shall also be submitted for further discussion by the Company in consultation with the Management and top leaders.

      8.  

      9. Upon accessing the facts and consequential damage caused by the violator’s breach of the R&R, the Company acting on the principle of impartiality, may suspend or terminate the distributorship of the Distributor concerned, by giving written notice via registered mail to the last known address of the Distributor as captured in the Company’s database. The postmark shall be taken as the proof of receipt.

      10.  

      11. In the event of suspension, a brief description of the complaint lodged against the suspended Distributor shall be stated, in addition to spelling out the necessary steps in rectifying his/her behaviour as well as the deadline for their compliance.

      12.  

      13. Failure on the suspended Distributor’s part in rectifying his/her behaviour within the stipulated deadline shall eventually lead to the termination of his/her distributorship.

      14.  

      15. The Company reserves the right to take necessary actions against the terminated Distributor and demand any compensation for damages and legal costs incurred, if any.

      16.  

      17. The Company reserves the right to amend or change any part of the above procedure when necessary without giving prior notice.

 

 

  1. Representations Made By Distributors

 

    1. A Distributor shall not enroll or attempt to enroll an individual to be an Elken distributor without his/her knowledge or enroll or attempt to enroll a non-existent individual (phantom) as Elken Distributor or fraudulently execute a Distributor Application Form on his/her behalf.

    2.  

    3. The integrity of Elken’s Marketing Plan and the confidence of other Distributor shall be upheld at all times as such Distributors shall present the Company’s products and Elken’s Marketing Plan truthfully and accurately.

    4.  

    5. It must be made clear that the Company’s programs are based on sales of the Company’s products not for recruitment or rank advancement in Elken’s Marketing Plan. It shall be stated that sales commission are generated through diligent and committed efforts and Distributors are not allowed to make exaggerated income claim.

    6.  

    7. Distributors shall not claim, represent and imply directly or indirectly on any of the Company’s products other than those found in current Company literature and/or labels. If the reputation of the Company is damaged for this reason, Distributors concerned will be held responsible for all costs or damages arising from such action. Furthermore, they shall not bind or commit the Company to any settlement related to such costs or damages.

    8.  

    9. All statements regarding product description and use must conform in every way to the written policies of the Company.

    10.  

    11. Distributors shall not impose minimum purchase or compel prospective distributors to purchase more products than they can reasonably sell, use or maintain a specific amount of products before joining the Company.

    12.  

    13. Distributors shall only use credit card with their own name embossed on the credit card for any purchases and shall ensure to the credit card information are accurate and there are sufficient funds for such transaction.

    14.  

    15. Distributors shall be responsible to make tax payment in relation to his/her earnings in accordance with the relevant local tax legislations/regulations.

    16.  

    17. Distributors shall not disseminate or spread any misleading, inaccurate and untruthful information or make any disparaging comparisons/statement, whether directly or by implication about the Company and/or its related, associated and affiliated companies through any communication platform. Any comparisons/statements made by Distributors shall be used in context based on relevant and substantiated facts and not unfairly facts that distort the truth.

 

  1. Labeling and Packaging

 

    1. Distributors shall not alter, relabel, repackage, rebundle, unbundle, sell in loose form, or otherwise change any of the Company’s products or sell any product under any name or label other than that authorised by the Company.

    2.  

    3. All products of the Company shall be marketed and sold in its original form and packaging.

    4.  

    5. Distributors shall not display or sell the Company’s products in any public or private places unless prior written approval from the Company has been obtained.

 

  1. Pricing

 

    1. Distributors shall not under-price or over-price any product of the Company for the purposes of gaining higher profits or promoting sales.

    2.  

    3. This action may warrant termination and/or legal action against the violators by the Company.

    4.  

    5. The integrity of Elken’s Marketing Plan and the confidence of other Distributors shall be upheld at all times.

    6.  

    7. Under-pricing or over-pricing in the above context means:

    8.  

      1. All products of the Company shall be sold at its Retail Price as prescribed or approved by the Company. No Distributor is allowed to raise or lower the price of any product.

      2.  

      3. No Distributor is allowed to carry out their own promotion unless with prior written approval from the Company.

      4.  

      5. Products obtained during promotions or with purchase offers shall be sold at its retail price.

      6.  

      7. A Distributor is not allowed to instigate, encourage, indulge or teach downlines to obtain bonus rebate/refund of commission in order to be more competitive in pricing.

 

      1. A Distributor is not allowed to resell the Company’s products to their downlines, sidelines and other groups without the submission of sales report to the Company.

 

      1. Distributor is not allowed to purchase/sell to the staff of the Company and vice versa.

 

  1. Advertising, Use of Name and Literature

 

    1. Distributors shall not advertise the Company’s products and/or its Marketing Plan without the prior written consent of the Company except by use of the exact language used in the Company’s printed materials.

    2.  

    3. Apart from printed materials that the Company may supply and/or sell to Distributors, a Distributor should not use the name of the Company, the Company’s logos, trademarks and/or other representation of the Company without its prior written approval of the Company. Upon expiration, suspension/termination of a distributorship, the affected Distributor:

    4.  

      1. Shall discontinue the use of all the Company’s logos, trademarks, and/or any other representations; and

      2. Shall not use any name, sign, label, stationery, products name, copyrights, designs and/or any printed material related to any of the Company’s products.

       

    5. Distributors shall obtain prior written approval from the Company prior to selling, participating and displaying Company’s products at trade shows/conventions or any other e-commerce platforms.

    6.  

    7. Distributors may not register or use any of the Company’s names, trademarks, logos, and product names in any website, URL (Uniform Resources Locator) address, domain name, electronic media advertising or other forms of advertisement.

 

  1. Cross-Sponsoring

 

    1. No Cross-Sponsoring of distributorship shall be allowed. Cross-Sponsoring in this context means:

      1. Signing up an existing Distributor from another group or sideline which is not within his/her direct line of sponsorship, whether or not within the Elken Group or otherwise.

      2. Signing up the spouse when the husband is already a Distributor or vice versa.

      3. Signing up under another sponsor to operate his/her distributorship when his/her distributorship is still valid.

      4. Allowing other person or relatives to use his/her distributorship to do business.

    2.  

    3. In the event of Cross-Sponsoring, the following actions shall be taken:

    4.  

      1. The distributorship of the Distributor, who signs up a Distributor of another group shall be terminated. All Distributors involved shall be transferred back to their original sponsor.

      2. If the spouse “A” of a Distributor “B” is found to have signed under another group. “A’s” distributorship will be terminated and all of “A’s” downline Distributors shall be transferred to “B”.

      3. If Distributor “A” is found to have used another person’s or a relative “B’s” distributorship under another group to carry out business, then “B’s” distributorship will be terminated and all of “B’s” downline Distributors shall be transferred to “A”.

       

    5. In addition, the Company reserves the right to:

    6.  

      1. withhold commission/bonus payment and/or suspend any benefits of the violating Distributor.

      2. terminate the violating Distributor at the Company’s discretion.

 

  1. Resignation, Self-Suspension, Termination, Death or Incapacity

 

    1. Distributors who have a minimum of 1SV (PS) in any SV month within their distributorship period will maintain their distributorship for the subsequent 12 months from the SV month that they made the last purchase. Thereafter, their distributorship will be terminated automatically at the end of the 12th SV month.

    2.  

    3. A Distributor whose distributorship has expired can only reapply to be a Distributor again after 14 days from the expiry date. E.g. If the distributorship expires in SV8 2013 (16th September 2013), a new application can only be submitted from 1st October 2013 onwards.

    4.  

    5. Any Distributor may choose to resign their distributorship with written notice to the Company and shall have his/her downlines transferred to his/her upline/sponsor.

    6.  

    7. A Distributor may reapply to be a new Distributor upon the expiry of his/her distributorship (i.e. 12 months from last purchase) or 6 months after Company receives his/her resignation letter, whichever is earlier.

    8.  

    9. A Distributor may choose to suspend his/her distributorship with written notice to the Company. In doing so, the Distributor must wait until the distributorship expires (12 months from last purchase) before reapplying to be a Distributor again.

    10.  

    11. The resigned, suspended or terminated Distributor is not permitted, either directly or indirectly, to enter into the premises of the Company, barring of digital facility, purchase products, hold and attend meetings and incentive trips, to participate in the building, sponsoring or development of any of the Company’s distributors and prospects. He/She shall cease to identify himself/herself as the Company’s Distributor and shall covenant not to influence existing Distributors, employees or those of the Company’s related, associated and affiliated companies in such a manner that may cause operational disruptions, reputational damages and financial losses to the Company and/or its related, associated and affiliated companies.

    12.  

    13. Any Distributor who has resigned or whose distributorship has been suspended or terminated shall no longer be entitled to the status of his/her distributorship and all of Elken’s Marketing Plan, benefits and entitlements. Standing orders for future purchases will be terminated and the Company may refund the unutilised funds (if any) after deduction of administrative charges. His/Her downline organisation shall be transferred to his/her direct sponsor. The resigned, suspended or terminated Distributor shall have no further claims whatsoever against the Company. A Distributor who has resigned or been suspended or terminated can reapply for a new distributorship after his/her resignation, suspension or termination subject to the Company’s approval and Clause 9(d).

    14.  

    15. Any person reapplying to become a Distributor of the Company shall not lay claim to any of his/her bonuses/ incentives, ranks or positions, which he/she enjoyed or held prior to his/her suspension/termination or resignation.

    16.  

    17. The Company shall terminate the violator’s Agreement and his/her distributorship in the event of any violation or failure to comply with any applicable laws and regulations, including but not limited to those rules governing the direct sales marketing activities.

    18.  

    19. Upon the demise or incapacity or health problems of a Distributor, his/her distributorship shall be transferred to the distributor’s beneficiary subject to the Company’s Beneficiary Policy and relevant laws of the country concerned. For joint distributorship (e.g. with spouse), upon the death of a legally married spouse, all the rights, titles, interests and benefits under their joint distributorship shall be vested in the surviving party.

    20.  

    21. The Company reserves the right to claim damages from the resigned, suspended or terminated Distributor if he/she is in breach of the Rules & Regulations or have participated in any other actions that may cause losses in terms of financial or otherwise to the Company.

    22.  

    23. Refusal of delivery or a request for return of products previously purchased for a refund shall be deemed as self-suspension.

    24.  

    25. Elken reserves the right to terminate this Agreement upon 30 days notice if Elken elects to:

      1. cease business operations;

 

      1. dissolve as a business entity; or

 

      1. terminate distribution of its products and/or services via direct selling channels. Distributor may terminate this Agreement at any time, and for any reason, upon written notice to Elken and its principal business address.

 

  1. Principle of Sponsorship

 

    1. It is against the Company’s policy for any Distributor to change sponsor through any means. Any application submitted with the intent to change sponsors will be rejected.

    2.  

    3. It is against the Company’s policy for a Distributor to be sponsored under two or more distributorships. Such conduct will result in their distributorship being terminated.

    4.  

    5. Application for the change of sponsor or any change in placement or change of the entire personal group is not permitted.

 

  1. Marriage

 

    1. If 2 Distributors are married to each other and both of them are neither a Diamond Council Member (DCM) nor a Diamond Manager (DM), then one of the distributorships will be terminated automatically.

    2.  

    3. If one of 2 Distributors who are married to each other is either a DCM or a DM, then the other distributorship has to be terminated and replaced by a joint distributorship of the couple. However, the original downline structure of the terminated Distributor shall remain unchanged, i.e. the downline of the terminated Distributor shall be moved upwards to the upline of the terminated Distributor.

    4.  

    5. If both Distributors are DCMs and at the same time DMs, then their individual distributorship may be retained with their original status. However, the couple may apply to terminate either one of the distributorships and become a single distributorship, in which case the original downline structure of the terminated Distributor shall also remain unchanged, i.e. the downline of the terminated Distributor shall be removed upwards to the upline of the terminated Distributor.

    6.  

    7. A husband with more than one legal wife can elect only one wife for joint distributorship. Such other wives of his wishing to be Distributors must be sponsored under the direct joint distributorship.

    8.  

    9. The Distributor referred to in Clause (11a), (11b), (11c) and (11d) is required to submit to the Company a copy of his/her marriage certificate and for (11d only) a written notification of his polygamy status. Failing to provide the documents will be considered a violation of the Rules & Regulations of the Company.

    10.  

    11. The Company may, at its sole discretion, terminate the distributorship of a Distributor if the Company is of the opinion (in which case the opinion shall be final) that the Distributor and/or his/her spouse (whether or not the spouse is a registered partner) has violated the Rules & Regulations of the Company.

    12.  

    13. A Distributor may own or have an ownership interest in only one distributorship except as provided below:

    14.  

      1. Where 2 Distributors are married to each other, in which case Clause (11c) shall prevail.

      2. Where an existing Distributor purchases another distributorship.

      3. Where a Distributor (being a transferor), in order to facilitate the transfer of a distributorship in the event of his/ her death, requests the name of another transferee to be included into his/her distributorship. The transferee must be his/her next of kin, namely his/her spouse, parent, child, or immediate brother or sister, and the transfer has to be supported by relevant supporting documents to evince the same. The name of the transferor must continue to remain in the distributorship until his/her death and supporting estate-planning documentation must be provided to the Company before change is effected. Such transfer shall be subject to such terms and conditions as may be imposed by the Company and the prior written approval of the Company and whose approval may at any time be withdrawn without any notice to that Distributor.

    15. A Distributor is required to report the above issue to the Company, failing which he/she shall be deemed to have violated the Rules & Regulations of the Company.

 

  1. Divorce

 

    1. Whenever a distributorship is separated as a result of divorce, the separation must be accomplished in such a way that it does not adversely affect the interests of other distributorships in the same line of sponsorship.

    2.  

    3. During the period in which divorce proceedings are pending, none of the parties are allowed to operate or participate in any other direct sales business.

    4.  

    5. The divorcing couple shall reach an agreement between them and the Company will continue to pay bonus in the same manner before the separation or divorce until it receives written noticed signed by both parties or final court decree, and either of them can submit the “Application for Termination of Distributorship”.

    6.  

    7. The withdrawing party upon the completion of his or her termination may reapply to become a Distributor under a new sponsorship. In the event of further disputes arising from a divorce but beyond the control of the Rules & Regulations of the Company, the relevant laws of the country concerned shall prevail.

 

  1. Sale of Distributorship


The sale of distributorship is subject always to prior written approval of the Company’s Head Office and upon fulfilling the following conditions:

 

    1. Only a distributorship in good standing with the Company and having the rank of DM (DCM) and above and not in violation of the Rules & Regulations may be sold. The Distributor must write in to the Company’s Head Office for prior written approval before any sale of distributorship can be made. Approval is based on the review of the proposed purchaser’s qualification, intention to manage the distributorship and will be subject to the consent and approval of the Company.

    2.  

    3. The sale of the distributorship follows the below preferential order:

    4.  

      1. First priority

      2. - The Distributor’s immediate sponsor

      3. Second priority

      4. - Any upline Distributor

      5. Third priority

      6. - One of the Manager downlines sponsored by the Distributor

      7. Fourth priority

      - One of the Distributors in the Company with the rank of Manager and above

       

    5. Upon obtaining prior written approval of the sale by the Company, a sale and purchase agreement must be signed between the buyer and seller. A copy of the duly stamped sale and purchase agreement must be extended to the Company for safekeeping.

    6.  

    7. Any Distributor who has sold his/her distributorship can only apply to join as the Company’s Distributor after one year from the date of the sale. Accordingly, he/she will start from the very beginning with no link to previous downlines.

    8.  

    9. All bonuses accrued to the previous distributorship will be paid to the new owners. The awards and recognition previously awarded to the distributorship will be transferred to the new owner, if the new owner is presently a Distributor of the Company. However, the new owner has to attain the required qualification before he/she is entitled to acquire any due awards and recognition of the transferred distributorship.

    10.  

    11. Selling and buying an existing distributorship as a means of changing distributorship is generally discouraged. The Company will closely scrutinise such transactions for violation of other important policies.

    12.  

    13. The Company reserves the right to disapprove any sale of distributorship without having to give any reason. Any effort to circumvent compliance of this section will render the transfer to be declared null and void.

 

  1. Prohibited Acts


A Distributor shall not:

    1. Incur any liability or debt in the name or on behalf of the Company;

    2.  

    3. Make or modify or alter or discharge any contracts in the name of the Company;

    4.  

    5. Negotiate or misled others that they have such right, enter into contracts and/or agreements for and on behalf of the Company;

    6.  

    7. Sponsor or solicit or attempt to sponsor or solicit another Company’s Distributor, employee, supplier, manufacturer, consultant, vendor or anyone into any other trade, business or profession whether directly or indirectly in competition with or in conflict with the Company’s interest and/or to alter or terminate their employment or business relationship with Company;

    8.  

    9. Solicit the participation of any Company’s Distributor, employee, supplier, consultant, manufacturer and vendor to purchase or sell any products other than the Company’s or to present other opportunities or to solicit their participation in any other trade, business or profession in competition with the Company. Notwithstanding the aforesaid, this provision does not apply to businesses/trades conducted by the Company’s associated, related and affiliated companies within the Elken Group;

    10.  

    11. Be engaged in or be interested, whether directly or indirectly or whether as principal, agent, servant or licensee in the sale of any products or goods other than those of the Company in any trade, business or profession in competition with the Company. Notwithstanding the aforesaid, this provision does not apply to businesses/trades conducted by Company’s associated, related and affiliated companies within the Elken Group;

    12.  

    13. Influence existing Distributors, employees or agents of the Company and/or those of its related, associated and affiliated companies to likely cause operational disruptions, reputational damages and financial losses to the Company and/or its related, associated and affiliated companies;

    14.  

    15. Be involved in any unauthorized media release or publication of Elken’s corporate related information (including giving personal interviews) to newspapers/magazines/other, whether through any form of mass communication without prior written approval from the Company.

    16.  

    17. Violate any terms stipulated in the Elkens’ Distributor’s Rules and Regulations, Code of Ethics, policies, procedures, directives, any applicable laws and regulations, including but not limited to those rules governing the direct sales marketing activities.

 

  1. Waiver

 

    1. Failure to enforce or to require the performance at any time of anyone of the provisions of these Rules & Regulations shall not be construed to be a waiver of such provision, and shall not affect either the validity of these Rules & Regulations or any part hereof or the right of any party thereafter to enforce each and every provision in accordance with the provisions of these Rules & Regulations.

    2.  

    3. Any waiver by the Company can and shall only be effected in writing by the authorised personnel of the Company.

 

  1. Changes and/or Amendments


Distributors shall comply with the Terms of Agreement, Elkens’ Distributor’s Rules and Regulations, Code of Ethics, policies, procedures, directives and any amendment made by the Company from time to time. The Company reserves the right to add, amend/change or substitute its Marketing Plan, Rules and Regulations, Code of Ethics, policies, procedures and directives at any time without prior notice. Amendments will be communicated by the Company by publication at the Company’s website and shall be effective and binding on of the publication date. In the event any conflict exists between the previous documents policies and any such amendments, the amendments shall prevail.

 

  1. General Provisions

 

    1. Confidentiality: Distributor shall neither disclose to third party or use confidential information including but not limited to genealogy, manufacturer information, commission and sales reports Product specifications or formula and other business and financial information of the Company received whether in electronic or written form for any other purpose except as permitted by the Company nor directly or indirectly contact or communicate with the Company’s supplier, vendor, and manufacturer except with Company’s prior written consent.

    2.  

    3. Indemnity: Distributors shall indemnify and hold harmless the Company, its shareholders, officers, directors, employees and related/associated/affiliated companies from and against any party’s claim, demand, liability, loss, expense (including court and attorneys’ fees), suit, proceeding howsoever caused whether for contractual breach, defamation, libel or slander, any loss or damage and goodwill arising, directly or indirectly arising out of or in any way related to or connected (allergy or otherwise) with a Distributor’s: (a) activities as Distributors; (b) breach of Terms of Agreement or Rules and Regulations; and/or (c) failure to comply with any applicable laws/regulations.

    4.  

    5. Limitation of Liability: To the extent permitted by law, the Company shall not be liable for, and each Distributors hereby releases the Company from, and waives all claims for any loss of profits, direct, indirect, special or consequential damages or any other loss incurred or suffered by Distributors as a result of: (a) breach of Agreement, Elken’s Distributors’ Rules and Regulations, Code of Ethics, policies, procedures, directives, terms and conditions of the Business Manual by the Distributors; (b) Distributor’s business operations; (c) any inadvertent, incorrect or wrong data or information provided by Distributors; (d) violation of any copyright in connection with materials provided by Distributor; or (e) failure by Distributor to provide any information or data necessary to the Company for business operations including but not limited to marketing and promoting of Company’s Products and/or the joining and acceptance of any individual as the Company’s Distributors or the payment of commission and bonuses.

    6.  

    7. Limitation of Damages: To the extent permitted by law, the Company, its affiliates, officers, directors, shareholders, employees and other representative shall not be liable for, and each Distributor hereby releases the foregoing from, and waives all claims for loss of profits, direct, indirect, incidental, special or consequential or exemplary damages which may arise out of any claim whatsoever relating to the Company’s performance or non-performance, act of omission with respect to the business relationship or other matters between the Distributor and the Company whether in contract, tort or strict liability. Furthermore, it is agreed that any damages to the Distributor shall not exceed and is hereby expressly limited to the amount of unsold Company’s Products owned by Distributors and any commission and/or bonuses owed to Distributors.

    8.  

    9. Force Majeure: The Company shall not be responsible for delays or failure in performance caused by circumstances beyond the Company’s control including but not limited to Act of God, strikes, labour difficulties, fire, war, government decrees or orders, or curtailment of a party’s usual source of supply.

    10.  

    11. Entire Agreement: The Terms of Agreement, Elken’s Distributors’ Rules and Regulations and Elken Business Manual together constitute the entire Agreement between Distributor and the Company.

    12.  

    13. Notices: Each notice, demand or other communication of any kind whatsoever given/served by the Company to the Distributor shall be in writing and delivered by registered mail or by personal service to the Distributor’s last known address or email address on file. Any notice, demand or other communication to the Company shall be sent or delivered to the Company’s address. Any Party may change its address for notice by giving written notice to the other in the manner provided in this section. Any such notice, demand or communication shall deemed to be have been given or served on the date of registered mail or date of personal service or email transmission date. Should any part of the Agreement is unenforceable (including any provision of exclusion of liabilities) the enforceability of any other part of therein shall remain in full force and effect.

    14.  

    15. Should any part of this Agreement be unenforceable (including any provision of exclusion of liabilities) the enforceability of any other part therein shall remain in full force and effect.

 

 

SOCIAL MEDIA & INTERNET POLICY

 

In today’s age of information technology, people can easily access and verify information uploaded on the internet (including but not limited to Facebook, blogs, WhatsApp, eBay, Lelong.com, Mudah.com, forums, chats).

 

As Elken’s Independent Distributors, you are Elken’s brand ambassador to the public. As such, whatever you say and do will reflect on Elken. With respect to customers’ or prospects’ views and perception of Elken, whether it is a good company equipped with high standards of integrity and upholds a commendable support system, these are commonly shaped by their experience with you. A good reputation plays an integral part of your business success as a good name will indefinitely gain trust and confidence.

 

Elken is committed to adopt social media to increase brand/product awareness, loyalty and support to its customers and prospective distributors to drive their business. This policy is developed to help you maintain the integrity of your Social Media and Internet Conduct.

 

  1. Representing Elken

 

Good Practices:

 

    1. Identify and present yourselves accurately and clearly as “Elken Independent Distributors” and use your own photos in all social media and internet platforms.

    2.  

    3. When you share information through Elken’s channels, you shall ensure it is stated clearly that the information is derived from Elken.com or Elken’s Facebook.

    4.  

    5. For the use of social media and internet relating to Elken’s business, you shall ensure compliance with Elken Distributors’ Rules and Regulations, policies and any applicable local laws, regulations and codes.

 

You Shall Not:

 

    1. Imply that you represent the Elken Group in any way or claim that you are Elken’s employee, agent or otherwise.

    2.  

    3. Replicate Elken’s official websites, Facebook page, product logo, brand or use Elken’s intellectual property, including but not limited to trade and service marks, slogans or logos without Elken’s prior written approval.

    4.  

    5. Purchase, use or register any domain name, URL or email that contains “Elken”, Elken’s product name, slogan, trademark on internet and social media platform.

  1. Business And Product Claims

 

Good Practices:

 

 

    1. You are encouraged to share your personal success stories and disclose or identify yourselves as “Elken Independent Distributors” and disseminate any official content and/or information from Elken.

 

    1. Make accurate representation of your income based on documented information in compliance with applicable laws and Direct Selling regulations.

 

    1. Obtain Elken’s prior written approval before setting up any online social platform, including but not limited to blogs, sites, Facebook account to share their your personal experience and/or network’s experience. Such information published and/or its content shall comply with Elken’s Rules and Regulations and this policy.

 

    1. Represent true and accurate government and regulatory endorsements on all Elken’s products.

 

    1. Obtain Elken’s prior written consent to scan/rip/record/copy and post Elken’s sales or advertisement tools, including but not limited to Elken’s printed materials, videos and audio contents onto social media or internet.

 

You Shall Not:

 

    1. Use keywords, meta tags or otherwise that represent illegal or unsubstantiated medical/product claims.

 

    1. Disseminate any political and sensitive content on social media platform or internet.

 

    1. Post any pictures/photos of yourself or any other members’ income/cheques or cash online to create an impression that Elken is a guaranteed success.

 

  1. Media Relations/Advertisements

 

Good Practices:

 

 

    1. Obtain Elken’s prior written approval before participating any media interviews, respond to any media inquiries and promote product or opportunity through any news report or trade industry publication.

 

    1. Obtain Elken’s prior written approval before advertising any online advertisements pertaining to Elken’s products, campaigns and promotions.

 

 

  1. Elken Activities

 

Good Practices:

 

    1. Obtain Elken’s prior written approval before recording, post any video or audio content, including but not limited to Elken’s personnel, activities, training programs, meetings, sales presentations or any other Elken’s organized events.

 

  1. Product Pricing

 

Good Practices:

 

    1. Sell products at retail price (RP) to customers. Only Distributors can enjoy Elken’s products at the Distributor Price (DP) and those offered as Elken’s official promotional packages.

 

You Shall Not:

 

    1. Design, advertise or offer any self-made trial packs, discounts, free gifts, lucky draws or promotional packages without Elken’s prior written approval.

    2.  

    3. Resell products via online, including but not limited to internet, social media sites, public channels, forum and blogs, as it contravenes direct selling legislations and regulations.

    4.  

    5. Promote Elken’s products together with products from other company or use other company’s intellectual property rights.

     

    Any contravention of this policy may result in either suspension or termination of your distributorship.

 

 

 

 

 

 

 

 

 

CODE OF ETHICS

 

All Distributors are required to observe the Elken Distributors’ Code of Ethics at all times, which is set forth as follows:.

 

Distributor’s Pledge:

 

  1. I will follow the highest standard of honesty and integrity in conducting the Elken Business.

 

  1. I will be abide by, Elken Distributors’ Rules and Regulations, Code of Ethics, Company’s policies, procedures, and directives all the times.

 

  1. I will not resort to any fraudulent act in promoting the Company’s business at the expense of the Company, fellow distributors and direct selling industry.

 

  1. I will present the Marketing Plan accurately and honestly, clearly portraying the level of efforts required to achieve success.

 

  1. I will not make negative or disparaging remarks about the Company, its employees, officers, directors or denigrate other company’s products, marketing plan or any other features of another company. I will be respectful to the Company, its staff, fellow Members and to the direct selling industry as a whole.

 

  1. I will not retail the Company’s products at below or above the prescribed prices authorized by the Company.

 

  1. I will not use the Company’s trade name(s), information, literature, advertising materials and Company’s resources for any other business interests or purpose not authorized by the Company.

 

  1. I will continuously strive to ensure that my customers and fellow Distributors are satisfied with the Company’s products and my service.