Common use of Cancellation and Re-application Clause in Contracts

Cancellation and Re-application. An Affiliate may only change his or her Sponsor by voluntarily terminating his or her Affiliate Agreement and remaining inactive (i.e., no promotion or sponsor of sales of Novae products or services, no sponsoring, no attendance at any Novae functions, no participation in any other form of Affiliate activity, no operation of any other Novae business, and no income from the Novae business) for six full calendar months after termination. Following the six-month period of inactivity, the former Affiliate may reapply under a new Sponsor. In that event, the former Affiliate's Marketing Organization will remain in the original line of sponsorship and the former Affiliate will start back as a new Affiliate with no downline.