CONSULTANT AGREEMENT
This Agreement ("Agreement") is entered into between Pure Romance, Inc., an Ohio corporation, with a business office at
161 Commerce Boulevard, Loveland, Hamilton County, Ohio 45140 ("Company") and the prospective Contractor filling out this online form.
1.The Company has designed and developed a program (the "program") for the sale of lingerie and other personal
entertainment goods through home parties, which has become well known and established a reputation for quality.
As a part of this program, the Company provides training, services, materials, and goods, including certain goods
and materials bearing the Company's PURE ROMANCE trademark or its PURE ROMANCE service mark and
certain copyrighted materials for use in the businesses of individuals interested in owning a business that promotes
and sells goods provided by the Company.
2.The Contractor desires to own and operate a business that will sell goods provided by the Company.
Agreement Provisions
In view of the foregoing background and of the following obligations, the Contractor and the Company agree:
1.Relationship. The Contractor is a self-employed individual and independent contractor, and not an employee of
the Company, in the business of selling merchandise provided by the Company. The Contractor is not a corporation,
limited liability company, or other form of entity. The Contractor is the sole owner of her business. The Company
is a supplier of training and a Consultant of merchandise for the Contractor's retail sales business. There is no
partnership, joint venture, or franchise business conducted by the Company and the Contractor, except as expressly
and specifically provided by this Agreement. This Agreement is not intended to create and does not create any
agency relationship. The Contractor and the Company do not have any authority to act for the other or to undertake,
incur, and will not undertake or incur, any obligations or debts binding upon the other. The Contractor
acknowledges that she has investigated, to her full satisfaction, all aspects of the program, the business and the
merchandise to be sold and is not in any way relying on any representations or warranties of the Company in
entering into this Agreement. Specifically, the Company has made no representations, directly or indirectly, about
retail outlets, account locations, the ability to earn a gross or net profit in excess of any payments made for
merchandise, the existence of any market for the goods, that the Company has knowledge about the Contractors
relevant market, that the Company will supply to the Contractor names of locator companies or provide assistance
with or supply names of or collect a fee on behalf of or for a locator company or that any buy-back arrangement
exists.
2.Laws and Taxes. The Contractor will observe all laws and regulations and will meet all standards set by any
federal, state, local, or other governmental authority or entity regulating or pertaining to the business of the
Contractor. As an independent contractor, Contractor is liable for all Social Security, Medicare, and other selfemployment
taxes, all income taxes, and all sales income tax, and other returns required by any local, state, or
federal tax authority for the Contractor's business. When required or advisable due to override awards, sponsor
swards, product awards, prizes or gifts, the Company may issue appropriate tax forms, including federal Form
1099's to the Contractor, reporting these to tax authorities as income to the Contractor.
3.Promotion and Sales. The Contractor will use her best efforts to learn the Company's merchandise and to
promote and sell the Company's merchandise solely through home parties. The Contractor will display and promote
the Company's merchandise tastefully and honestly. The Contractor will maintain the highest standards of integrity,
honesty, professionalism, and responsibility in promoting and selling the Company's merchandise. The Company
will make available to the Contractor training programs to educate the Contractor regarding the Company's products
and recommended sales techniques and will provide promotional materials, forms, and sales aids to the Contractor.
The Company will provide to the contractor all of its lines of merchandise, but the Company will not have any
liability and the Contractor hereby waives any claim against the Company for lack of availability of any particular
product due to uneven demand, inability to obtain a product from its manufacturer or Consultant, or any other
condition beyond the control of the Company. The Contractor will only display, promote, and sell merchandise
distributed by the Company at home parties at which PURE ROMANCE merchandise is displayed, promoted, or
sold. The Contractor will not sell, market, promote or display the merchandise of any other companies through her
PURE ROMANCE business. Contractor will not sell, market, or promote merchandise sold by the Company on any
web site not specifically authorized by the Company, including without limitation, E-Bay or any similar site.
Contractor agrees to the liquidated damages provision set forth in paragraph 13 if Contractor sells, markets,
advertises for sale, or promotes the merchandise sold by the Company on any web site not approved by the
Company, including but not limited to E-Bay or any similar site. The Contractor will display, promote, and sell the
Company's merchandise in accordance with all policies and procedures set forth in the Company's products, on a
nonexclusive basis throughout the United States.
4.Liability and Indemnification. The Contractor will defend, hold harmless, and indemnity the Company from
any claim or liability for any misrepresentation, act or omission by the Contractor or any negligence, misconduct or
intentional act of the Contractor in promoting or selling the Company's goods.
5.Trademarks and Advertising. The Company owns certain trademark and trade name rights to its PURE
ROMANCE trademarks and its PURE ROMANCE service marks (collectively the "Marks") and to its PURE
ROMANCE trade name. The Contractor will use the Marks, in connection with all home parties and sales of PURE
ROMANCE merchandise, but only in accordance with the standards and procedures set forth in the Company's
Handbook. The Contractor will not use any other trademarks or trade names in connection with the Contractor's
PURE ROMANCE business. The Contractor will not use Marks in connection with any other business of the
Contractor. After one year from the date that the Company has signed this Agreement, provided the Contract has
remained active according to the policies and procedures in the Company's Handbook, then the Contractor shall be
given the limited and nonexclusive permission to use the format "PURE ROMANCE by
[insert first, given, or nickname]" in local telephone directory and yellow page
listings. Except for this limited permission for use in local telephone directories, the Contractor will use the Marks
in advertising only after the Company has approved the advertising in writing. The Contractor will promptly notify
the Company in writing of any third-party use of the Marks or trade name, of any equivalent or variation of them, or
of any similar mark or name. The limited permissions granted in this ¶5 shall terminate immediately upon the
termination of the Consultant-retail dealer relationship provided for by this Agreement.
6.Confidential Materials and Copyrights. The Company Handbook is the property of the Company, contains
some material that is trade secrets or confidential information of the Company, and is protected by copyright laws,
trade secret laws, unfair trade practices law, and other laws. The Company may also publish other materials from
time to time, including materials describing incentive programs and contests, that contain trade secrets or other
confidential or proprietary information. The Company will provide a Handbook and the Company's other printed
materials to the Contractor for the Contractor's use only during the relationship governed by, and the permissions
granted by, this Agreement. The Contractor will not disclose or reveal the contents of the Handbook and other
printed materials that are designated "Confidential" (the Handbook and other designated materials being referred to
collectively as "Confidential Information") to anyone, will not discuss the contents of Confidential Information with
anyone other than the Company, other Contractors, or the Contractor's lawyer (and will only disclose and discuss
Confidential Information with a lawyer engaged to provide legal advice with regard to her business or because of a
conflict or disagreement with the Company). The Contractor will not copy any Confidential Information. The
Contractor will return all of the Confidential Information to the Company promptly upon the termination, for any
reason, of the relationship provided for by this Agreement. The Contractor will promptly notify the Company in
writing of any third-party use of the Confidential Information, including making or using copies of any Confidential
Information, using extracts from any Confidential Information, or otherwise infringing any of the Owner's
Copyrights.
7.Sales and payment. The Contractor will conduct all sales to customers and payment to the Company in
accordance with the policies and procedures in the then current Handbook.
8.Incentives. The Company will provide certain sales and recruiting performance incentives to the Contractor in the
form of programs and contest opportunities for discounts from the purchase price for the Company's merchandise,
override awards, sponsor awards, product awards, and prizes, all in accordance with the policies and procedures set
forth in the Company's Handbook, newsletter, incentive program announcements, and contest announcements. The
Contractor will not be entitled to payment for any discounts, override awards, sponsor awards, or prizes earned or
accrued after the termination of the Consultant-retail dealer relationship provided for by this Agreement.
9.Privacy and Right of Publicity. The Contractor will not disclose the name or communications or contact
information (including, but not limited to, addresses, telephone numbers, and e-mail addresses) of PURE
ROMANCE customers to anyone except the Company. The Company may disclose the Contractor's name and her
PURE ROMANCE business telephone number to potential customers and potential new contractors. The Company
may use the Contractor's name and photograph and quotes from the Contractor about PURE ROMANCE
merchandise and the Company's PURE ROMANCE business in the Company's newsletter, in promotional materials,
and in similar materials.
10.Policies and Procedures. The Contractor will act in accordance with all policies and procedures set forth in the
Company's Handbook, whether or not they are referred to in this Agreement, as the Company may revise its
Handbook from time to time. The Company may make reasonable changes to its policies and procedures at the
Company's discretion.
11.Duration, Termination, and Surviving Provisions. This Agreement will be effective on the date signed by the
Company below. Either party may terminate the relationship and the permissions granted in this Agreement upon
fifteen days written notice, provided that paragraphs 2, 3, 5, 6, 9, 12, and 13 of this Agreement will survive the
termination of the relationship and the permissions. Notwithstanding the foregoing, either party may terminate this
Agreement immediately upon written notice for any material breach of the Agreement. This Agreement will be
terminated, immediately and automatically, without notice, if the Contractor fails to purchase the minimum amounts
of merchandise set forth in the then current Handbook.
12.Competition restriction. The Contractor will not, during the relationship provided by this Agreement and for a
period of one year from the termination of the relationship, within any County in which the Contractor has at any
time displayed, promoted, or sold PURE ROMANCE merchandise (1) engage in a business similar to the
Company's business, including owning, operating, organizing, managing, directly, supervising, consulting with, or
otherwise working for or being employed by such a business; (2) solicit any Contractor of the Company to become a
sales representative, dealer, Consultant, or contractor for the Contractor for a business similar to the Company's
business; or (3) solicit any customers of the PURE ROMANCE network of contractors or any person who is or was
a customer of the Contractor during the Contractor's relationship with the Company to purchase merchandise similar
to the Company's merchandise from the Contractor. If the Contractor breaches this provision, then in addition to
any legal or equitable actions available to the Company, the one-year noncompetition period will be tolled for the
duration of the breach so that the Company obtains the benefit of this provision for a noncompetition period of one
year. After the termination of the relationship, the Company will attempt to service the PURE ROMANCE
customers of the Contractor with another Contractor.
13.Legal actions and Liquidated Damages. If the Company files a legal action to enforce any of the Contractor's
obligations or the Company's rights set forth in this Agreement, then the Contractor will pay the Company's
reasonable attorneys' fees, court costs, and legal expenses. Because monetary damages are difficult to determine for
the breach of the obligations in paragraphs 3, 5, 6, 9, or 12, the Contractor consents to any preliminary and
permanent injunctive relief, including temporary restraining orders, that may be necessary to enforce these
obligations. Furthermore, Contractor agrees that if Contractor violates the provisions of paragraphs 3 relative to the
sale, marketing, advertising for sale, or promoting of products on any web site not authorized by the Company,
including E-Bay, then Contractor shall pay a liquidated amount of $5,000 per violation. Company shall continue to
have all equitable rights and remedies that may be available to it for a violation of the foregoing prohibitions.
14.Assignment. This Agreement is personal to the Contractor and the Contractor may not assign or otherwise
transfer any right, interest, or obligation of the Contractor under this Agreement, in whole or in part, in any manner.
The Company will have the right to assign or transfer all rights in its PURE ROMANCE trademarks, service
marks, and trade name and to assign or transfer any interest of the company in the Copyrights and Confidential
Materials. The Company will have the right to assign or transfer any or all rights, interests, and obligations of the
Company arising from this Agreement. This Agreement is binding upon, and will inure to the benefit of, the
Company and the Contractor, their legal representatives, and their successors in interest.
15.Amendment, Waiver, and Applicable Law. This Agreement constitutes the entire understanding of the
Company and the Contractor concerning the subject matter of this Agreement and supersedes any prior oral or
written and any contemporaneous oral agreements, understandings, promises, or representations. This Agreement
may be amended only by an agreement in writing signed by the Company and the Contractor. No waiver of any
obligation or provision in this Agreement will constitute a waiver of any other obligation or provision and no waiver
of a breach of any obligation or provision will constitute a waiver of another breach of the same obligation or
provision. This Agreement, including its interpretation and jurisdiction for enforcement, will be governed by the
laws of the United States of America and the State of Ohio, and both Company and Contractor agree to jurisdiction
and venue in Hamilton County, Ohio. If any provision or part of a provision of this Agreement is held
unenforceable, the remaining provision will remain enforceable and any court of competent jurisdiction may reform
this Agreement to accomplish the intent of the parties.
16. RESTRICTION ON COMPETITION, DISCLOSURE OF PROPRIETARY INFORMATION, AND
BUSINESS RELATIONSHIPS.
I, , UNDERSTAND THAT THIS AGREEMENT AFFECTS MY RIGHT TO
DISCLOSE OR USE THE COMPANYS PROPRIETARY INFORMATION DURING OR SUBSEQUENT
TO MY EMPLOYMENT.
I ACKNOWLEDGE THAT I AM NOT GENERALLY RESTRAINED BY THE COVENANTS
CONTAINED IN SECTIONS 2, 3, 5, 6, 9, 12 AND 14 ABOVE FROM ENGAGING IN DEVELOPMENT,
SALES AND MARKETING ACTIVITIES IN THE SALE OF PRODUCTS SOLD BY THE COMPANY
AND SPECIFICALLY, WITHOUT LIMITATION THE SALE OF LOTIONS, SOAPS, LINGERIE, AND
RELATED PRODUCTS. THE COMPANY AND I HEREBY ACKNOWLEDGE AND AGREE THAT THE
COVENANTS CONTAINED IN THIS AGREEMENT ARE FAIR, REASONABLE AND NECESSARY AS
CONSIDERATION FOR THE COMPANYS EXTENSION OF THE VALUABLE TRADEMARK
RIGHTS, BUSINESS METHODS, COMPENSATION AND BENEFITS AND IN ORDER TO PROTECT
THE COMPANYS TRADE SECRETS AND OTHER CONFIDENTIAL INFORMATION. IT IS THE
DESIRE AND INTENT OF THE PARTIES THAT THE PROVISIONS OF THIS AGREEMENT SHALL
BE ENFORCED TO THE FULLEST EXTENT PERMISSIBLE UNDER THE LAWS OF THE STATE OF
OHIO, OR ANY OTHER STATE WHERE COMPANY DOES BUSINESS.
I HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS.
Code of Conduct
Pure Romance has grown into a leading force as a result of an unwavering commitment to building a respected
image within the industry and among customers. This has been obtained through the actions of the Corporate
Office as well as every Consultant representing the company. All Pure Romance Consultants are expected to follow
the Pure Romance Code of Conduct:
- Consultants dress in professional business attire for all Corporately-sponsored events, unless casual attire is
specified. Dress is tasteful and appropriate even when casual in nature.
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- Consultants use appropriate language at all times and avoids slang, derogatory and/or profane terms.
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- Consultants respect others personal space and avoids inappropriate body contact.
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- Pure Romance Consultants accept that each person is entitled to their own opinion and views. Consultants do
not speak negatively about another Consultant or make that individual feel uncomfortable when their approach
differs from their own.
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- When consuming alcohol at any Corporately-sponsored event or trips, Consultants are fully responsible for their
actions and must know their limits.
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- Consultants maintain and share a positive attitude.
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- Consultants treat other Pure Romance Consultants and members of the Corporate Office staff with the utmost
respect and professionalism.
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- Concerns regarding policies or procedures shall not be addressed to members of the Corporate Office publicly
during events, meetings or other public forums.
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- Consultants follow Pure Romances general Marketing policies and procedures.
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- Consultants provide honest information regarding price, delivery, usage suggestions, quality and order
processing.
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- Consultants are fair and ethical in dealing with all business transactions and situations. Consultants handle
monies responsibly and fulfill orders in a timely fashion in accordance with the policies set forth in the Consultant
Guide and on the Consultant Agreement.
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- Consultants respect each customers privacy and provide confidential order processing.
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- A Consultant never encourages a Hostess, customer or recruit to stop doing business with another Pure
Romance Consultant.
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- Consultants refrain from deceptive or unethical recruiting practices.
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- Consultants do not approach, directly or indirectly, other Pure Romance Consultants with thoughts of transferring
to another Party Plan or Direct Sales company. Such steps will result in immediate cessation of benefits at the
discretion of the Corporate Office.
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