TERMS OF PERSMADU SAEADA SDN BHD MEMBERSHIP

The following are the requirements of expertise that an independent distributor (“Distributor”) needs to observe and comply with in the process of selling Choco Lécious products (“Product”). This product includes all products manufactured, or officially authorised by Persmadu Saeada Sdn Bhd (the “Company”) for the purpose of carrying out direct selling business in Malaysia.

1. Distributor Membership Requirements & Status
1.1. The applicant must be a registered individual or business entity to apply as a Distributor.
1.2. Individual applicants must be at least 18 years old and above.
1.3. New Distributors must be sponsored by an authorized Distributor by filling out the Distributor Application Form on the company website system with complete information.
1.4. Distributors are independent and may not represent themselves as employees or representatives of the Company, when conducting their direct sales business.

2. Distributor Membership Period
2.1. A Distributor’s membership is valid for life starting from the date of registration.

3. Distributor Purchase Receipt (Invoice)
3.1. All Company Product transactions must be conducted in Ringgit Malaysia (RM) currency and settled through online banking (FPX).
3.2. Distributors will receive a copy of the invoice issued by the Company with each purchase. The Distributor must check and ensure that all Products are in good condition before signing the invoice collection.
3.3. If no invoice error complaint is received from the Distributor within ten (10) days after the invoice is issued, then the Distributor is not entitled to request any exchange after that period.

4. Bonus Value (“BV”)
4.1. Distributors will receive BV for every purchase of company products stated with BV. The company will consider this BV when determining bonuses and incentives for each eligible Distributor.

5. Product Pricing
5.1. Product prices are determined by the Company. Distributors are prohibited from lowering or raising the price of the Product.

6. Product Exchange
6.1. Products that are within the warranty period, undamaged, with original packaging and unopened covers and in resalable condition, can be returned within ten (10) days only from the date of purchase. Product Exchanges can only be made with the same Product or another product with a same BV amount if BV has been calculated for bonus.
6.2. The Company reserves the right to charge shipping and handling costs determined by the Company.
6.3. Products damaged due to the Distributor’s negligence or improper storage cannot be exchanged.
6.4. Products past their expiration date cannot be returned or exchanged.

7. Late or Unclaimed Products
7.1. Distributors must collect the Products that have been purchased within six (6) months from the date of purchase.
7.2. If the Products not collected within six (6) months from the date of purchase, the Distributor is deemed to have agreed to waive the right to the purchased Product.
7.3. The Company will not make any refunds for Products not taken within six (6) months.

8. Buyback Policy
8.1. Only Distributors who request to cancel their membership are eligible for the buyback policy. For returned goods, the invoice date cannot be more than six (6) months after the purchase date. Returned goods, including any promotional items, must be undamaged, in their original packing, resellable, and have a minimum six-month validity term.
8.2. The distributor must include the invoice for the product to be returned and state the reason for membership termination in writing submitted to company.
8.3. Once approved, the amount to be returned is equivalent to the distributor price after deducting the bonus paid by the Company in accordance with the business plan as well as a handling charge of ten percent (10%). Rebates, travel costs and other promotions (if any) will also be deducted at the Company’s discretion.
8.4. All sales aids cannot be returned or refunded.
8.5. The net amount of the refund for the repurchase of the Product will be issued within thirty (30) days after the return of the product is received by the Company.

9. Duplicate Identity
9.1. Distributors cannot register as Distributors more than once.
9.2. If there are two (2) Distributors claiming to be sponsors of a new Distributor, the Company will consider the earlier application based on the invoice date.

10. Spousal Sponsorship
10.1. Married couples cannot apply to be Distributors jointly, but they can apply to be independent distributors separately provided they are in the same group. (Example: husband sponsoring wife or wife sponsoring husband. Otherwise, the Company reserves the right to transfer the group of couples who join later to the original group).
10.2. If two (2) Distributors get married or divorced after registering as Distributors, their sponsorship framework will remain the same.

11. Heirship
11.1. If a Distributor dies and his membership as a Distributor is still valid, his distributorship rights can be inherited by legal heirs.

12. Transfer of Ownership Distributor Membership
12.1. Distributor Membership can only be transferred to a spouse, child, parent or sibling.
12.2. The person receiving the transfer of title must not be an existing / valid Distributor.
12.3. A distributor who wishes to change the ownership of his membership must give a reasonable reason, inform the relationship between the person transferring ownership and the person receiving ownership and must be accompanied by supporting documents.
12.4. The Company reserves the right to approve or reject any application for change of ownership.

13. Cancellation of Membership
13.1. New distributors may cancel their membership within ten (10) days from the date of application. If the Distributor does not do so, the Distributor is deemed to agree and be willing to comply with the conditions listed in the Distributor Handbook.
13.2. Authorized distributors who wish to cancel their membership may apply in writing to the Company.
13.3. Distributors are prohibited from publishing news about the cancellation of their membership in any printed material publicly before the cancellation application is approved. If not, the Company reserves the right to take legal action to claim losses as a result of such broadcasting or printing.

14. Application to Reapply as Distributor
14.1. A former Distributor who wishes to reapply as a Distributor under a new sponsor, may only do so:
14.1.1. After three (3) months from the date of termination of membership; or
14.2. Distributors who cease to be members of their own choice can only reapply as Distributors after three (3) months from the valid termination date.

15. Termination of Distributor Membership
15.1. The Company reserves the right to terminate Distributor membership for any of the reasons below without giving any compensation:
15.1.1. Distributors provide false information;
15.1.2. Distributors are found to have committed acts that damage the good name, rights or benefits of the Company or damage the good name, rights or benefits of other distributors or affect the general unity and harmony;
15.2. When a Distributor’s membership has been terminated by the Company, the Distributor shall not be entitled to enjoy any benefits under the Company’s marketing plan and shall not receive any income.
15.3. The Distributor Group Framework that has been terminated by the Company will not change.
15.4. If the Distributor’s membership is terminated by the Company or himself for violating the Distributor’s terms, his partner will also be fired, unless otherwise notified. Their group structure will not change.

16. Company Rights
16.1. The Company reserves the right to approve or reject applications from anyone as a Distributor.
16.2. The Company reserves the right to change policies and procedures for the benefit of the Distributor and the success of the Company. All Distributors are responsible for complying with any changes from time to time.
16.3. All decisions, interpretations, views or approval of a matter listed in the Company’s Distributor Handbook, are the Company’s absolute rights and cannot be challenged.
16.4. If there is a disagreement about the qualifications, rights and benefits of the Distributor, the Company reserves the right to appoint an arbitrator to resolve the matter. The decision of the committee is final.
16.5. The Company’s rights are not limited to the above list only.

17. Compliance with Laws and Regulations and Company Instructions
17.1. Distributors are responsible for understanding and complying with national laws including the Direct Selling and Anti-Pyramid Schemes Act 1993.
17.2. Distributors are responsible for obeying and implementing instructions given by executive officers, managers and representatives authorized by the Company.
17.3. By applying for Persmadu Saeada membership, the Distributor hereby undertakes and guarantees indemnity (Undertaking & Indemnity) to the Company for compliance with all terms of membership, laws and regulations of the country when conducting the Company’s direct sales business. The Company is exempted from any civil or criminal action for the Distributor’s misconduct. The Distributor also agrees to compensate the Company for any losses suffered by the Company as a result of the Distributor’s misconduct while conducting the Company’s direct sales business.

18. Taxation
18.1. Distributors must keep complete and accurate records of their total annual income and are responsible for reporting that income to the Department of Internal Revenue. Distributors are also required to pay the relevant taxes themselves, according to the taxation laws in force.

19. Responsibilities of a Distributor
19.1. Honesty
19.1.1. Distributors must introduce the Company’s marketing plan and promote the Product with a sincere and honest attitude.
19.1.2. Distributors must always be disciplined, honest and responsible. Distributors must not defame the Company or other distributors, as well as make any personal attacks through actions or speech.
19.1.3. Distributors may not use the Company’s trademark, logo or any intellectual property without first obtaining written approval from the Company.
19.2. Diligence
19.2.1. Distributors should be diligent in marketing and promoting the Product.
19.2.2. Distributors should always build relationships, provide training, guidance and motivation to colleagues under them.
19.2.3. Distributors should inform their subordinates about the Company’s new products, updates and news.

20. Distributor Independent Nature
20.1. Distributors need to understand and be clear that they are independent distributors running their own business. Distributors are not allowed to claim that they are employees of the Company, representatives of the Company or have the right to represent the Company in any assignment or responsibility.

21. Advertisements and Promotions
21.1. Distributors are allowed to display the Products at sales stores, business expos, exhibitions or similar places.
21.2. Distributors are prohibited from repackaging, changing stickers/labels or selling Company Products under other brands.
21.3. The Distributor may not give false descriptions of the quality, effect or supply of the Product. Instead, the Distributor must provide the description according to the Product sticker or the Company’s official description material. If there is an information error that results in the Company’s reputation being compromised, the Distributor must pay commensurate damages.
21.4. Distributors are prohibited from displaying any personal data, including but not limited to salary information, bonus statements, sales information, or other personal data issued by the Company, on any online platform or social media.
21.5. Without written permission from the Company, Distributors are prohibited from conducting charity work, raffles or offering free travel opportunities or other means as Product promotional activities.
21.6. Distributors are prohibited from coercing or using any means to force anyone to purchase a certain amount of Products.
21.7. Distributors are prohibited from posting or disseminating any news that may damage the good name of the Company.

22. Distributor Rights
22.1. Distributors enjoy the following rights provided they do not violate any of the Terms & Conditions of Membership:
22.1.1. The right to sponsor anyone who meets the prescribed conditions;
22.1.2. The right to enjoy benefits and bonuses under the Company’s marketing plan;
22.1.3. The right to participate in courses and activities conducted by the Company by fulfilling the conditions set in the courses and activities; and
22.1.4. Right to sell Products.

23. Others
23.1. Bonus calculation according to the Company’s marketing plan will be made according to the BV set for each Product.
23.2. The Company will not be responsible for any or all disputes, debts, court cases and other matters caused by the Distributor’s own behavior.
23.3. Distributors who violate any rules in the Distributor Handbook, may be fined by the Company.
23.4. All words used to mean men also include the meaning of women and vice versa, words that mean one also include the meaning of many and vice versa.

24. Personal Data Protection and Privacy Policy
24.1. The personal data and privacy of the Distributor and/or any customer is important to the Company. Any use of personal data by the company is subject to compliance with the Personal Data Protection Act 2010, applicable Regulations and Orders.
24.2. The Distributor has read, accepted and agreed to the terms under the Personal Data Protection Notice and/or Privacy Policy.

For any additional information, may contact:
Persmadu Saeada Sdn Bhd (1494010U)
No. 2A, Jln Putra Murni 3/2A, Putra Heights,
47650 Subang Jaya,
Selangor.

Tel: 03-51919788
Email: hello@persmadu.com.my