Common use of Change of Sponsorship Clause in Contracts

Change of Sponsorship. VIVRI® prohibits changes in sponsorship. As a result, the transfer of a VIVRI® business from one sponsor to another is not allowed. A Leader can legitimately change organizations or sponsor by canceling his/her VIVRI® business and remaining inactive (i.e., without purchases of VIVRI® products for resale, sales of VIVRI® products, sponsorship, or assistance to any of the VIVRI® functions, the participation in any other form of Leader activity, or the operation of any other VIVRI® business, or the perception of income derived from the VIVRI® business) for six (6) full calendar months. After the six-month period of full inactivity, the former Leader may reapply for a new sponsor, however, the former leader's descending line will remain on their original line of sponsorship. In cases where adequate sponsorship change procedures have not been followed, and a descending organization has been created in the second business developed by a Leader, VIVRI® reserves the sole and exclusive right to determine the final disposition of the descending organization. The conflict resolution around the correct placement of a descending line that has been developed in an organization that has incorrectly changed sponsors is often very difficult. Therefore, LEADERS WAIVE ALL CLAIMS AGAINST VIVRI®, ITS OFFICERS, DIRECTORS, OWNERS, EMPLOYEES AND AGENTS THAT RELATE TO, OR RESULT FROM, THE VIVRI® DECISION IN RELATION TO THE PROVISION OF ANY DESCENDING LINE ORGANIZATION THAT IS DEVELOPED UNDER AN ORGANIZATION THAT HAS INCORRECTLY CHANGED ITS SPONSORSHIP LINES.