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The distributor acts as an independent company. The distributor is not an employee, commercial representative or agent of Cloud Hotel ERP. The trade regulations, takeover or other business obligations do not apply to the distributor. Except for the contractual obligations, the orders of Cloud Hotel ERP do not affect the distributor. The distributor bears all risks connected to his business activity, including bearing all business costs, i.e. the payment of its employees according to the regulations. The distributor shall be obliged to operate his business as expected from a merchant, and ensure all measures, that may also include the opening of an own office.
As an individual company the distributor is responsible to observe the relevant provisions, including the tax and social security regulations (e.g. requesting a tax number or reporting its employees at the social security bodies, acquiring operation permission, in case it is necessary). The distributor declares, that he pays all taxes, allowances, duties according to the relevant regulations payable after the income, earnings received for the activity performed for Cloud Hotel ERP. Cloud Hotel ERP reserves the right to deduct the amount of taxes, allowances and duties payable by the distributor from commission payable for the distributor, in case a law or legal provision orders Cloud Hotel ERP to do so. Cloud Hotel ERP does not pay health insurance allowance after the distributor. The distributor does not possess authorization to make declaration or to undertake obligations representing Cloud Hotel ERP.
The distributor shall be obliged to ensure that no third parties have access to the password and registration data of the distributor.
During its activity the distributor may not harm third parties’ rights, may not bother third parties and may not violate effective laws. In case of sending electronic marketing materials, no unwanted electronic advertisements may be sent, marketing faxes, text messages or marketing phone calls can be made (even using automated call centers). No irregular or illegal activity may be performed, e.g. unauthorized or incorrect marketing activity. Especially, the distributor may not communicate false or deceiving data from the services and sale system of Cloud Hotel ERP.
Furthermore the distributor is not entitled to market and/or sell the products (services) of competitors. Furthermore the distributor is not entitled to sell the products and services of other companies to other distributors, being in contractual relationship with Cloud Hotel ERP or to the users of Cloud Hotel ERP. In case at the same time a distributor performs activity at several companies, that are not competitors of Cloud Hotel ERP, then the distributor shall be obliged to perform the concerned activity (besides his own lower line), so that they do not become interconnected, furthermore the business activity performed for Cloud Hotel ERP shall not mix with the business activity performed for the other companies. Besides, the distributor may not recruit other distributors, being in contractual relationship with Cloud Hotel ERP to sell the products and services of other companies. By concluding the Distribution Agreement the distributor may not perform ethical delict against another distributor or company or regarding other Distribution Agreements that were concluded with other companies and that are valid.
The distributor is obliged to keep the business secrets and structure of Cloud Hotel ERP confidential. The information regarding the income possibilities of the lower line especially qualify as confidential information. This obligation shall remain intact following the termination of the Distribution Agreement.
Cloud Hotel ERP provides marketing and sale-documentation controlled from all aspects for all countries that are located in the web office of the distributor. It is forbidden to use, produce and market own sales brochures, own product brochures or other individually created press and marketing materials, without the prior written approval of Cloud Hotel ERP. This approval may be withdrawn any time. The services of Cloud Hotel ERP through the Internet may only be marketed with the use of the marketing devices and marketing communication material provided. The distributor may not publish data regarding his earnings or the income earning opportunity at Cloud Hotel ERP. In case the distributor advertises the services of Cloud Hotel ERP on other Internet media, e.g. community websites (e.g. Facebook), online blogs or chat rooms, then he may only use the official marketing communication provided by Cloud Hotel ERP and may not publish data regarding his earnings or the income possibility at Cloud Hotel ERP. The distributors may not sell or otherwise propagate their own marketing and/or sales documentation to other Cloud Hotel ERP distributors, furthermore they may not publish those in any way.
Furthermore the distributors may introduce the services on fairs and expos following the prior written consent of Cloud Hotel ERP. Its preconditions is that the introduction has to be in accordance with the provisions of the Agreement concluded between Cloud Hotel ERP and its distributors. However there is a restriction, that the distributor may not offer the products to its competitors.
The services, products of Cloud Hotel ERP may not be offered on free auction, open market or garage sale, exchange expo, in a store, on Internet markets (e.g. eBay, Amazon) or sold on similar sales place.
During his business activity the distributor may not convey an impression that he is acting as an agent or representative of Cloud Hotel ERP and may not convey an impression, that he depends on Cloud Hotel ERP, and follows its orders. The distributor may not take money representing Cloud Hotel ERP, furthermore is not entitled to make any declaration or undertake any obligation. During his marketing activity, the distributor has to abstain from fraudulent commercial practice. The distributor is expressly obliged to introduce himself as the independent and individual commercial partner of Cloud Hotel ERP. The Internet sites, letter-papers, business cards, furthermore advertisements, marketing material and such shall indicate the distributor as individually liable, and these materials have to contain the ’individual business partner of Cloud Hotel ERP’ text. Furthermore the distributor is not allowed to take up a loan, pay costs, undertake obligations, open a bank account, conclude other contracts or make a declaration containing obligations using the name of Cloud Hotel ERP.
During its business activity the distributor may not mention negatively, detractingly or otherwise illegally the brand names of the competition, may not evaluate other companies negatively or detractingly, furthermore may not apply negative, despising or other illegal evaluation in order to recruit the distributors of other companies.
All presentation, marketing, educational and film material provided in the web office (including the photos as well) is under the intellectual property protection of Cloud Hotel ERP. These materials may not be either partly or totally multiplied, spread or published without the express written consent of Cloud Hotel ERP. Possessing the written approval, the distributor is obliged to publish the legal and marketing documentation related to the online marketing activity connected to Cloud Hotel ERP on its website created for the publication of the online marketing activity connected to Cloud Hotel ERP.
The use of the name, trade name, titles and business names (hereinafter referred to as: ’distinguishing marks’) is also only allowed with the prior written approval of Cloud Hotel ERP. The same is applicable to the registration of such domain names and e-mail addresses that contain a characteristic of Cloud Hotel ERP in any form. Cloud Hotel ERP may request, that those Internet domain names or e-mail addresses, that contain some kind of Cloud Hotel ERP characteristic, and the use of which were not approved by Cloud Hotel ERP in writing, should be deleted, furthermore in case of Internet domain these should be transferred to Cloud Hotel ERP. In case of transfer, Cloud Hotel ERP undertakes to compensate the costs of the transfer of the Internet domain.
Bonus manipulations are forbidden. It is forbidden among others to sponsor such distributor, who actually does not perform business activity connected to Cloud Hotel ERP (so-called strawman), furthermore either open or hidden multiplied registration. It is forbidden to use the name of spouses, relatives, business names, companies limited by shares, private companies, investment companies and third parties, in order to evade this provision.
1 month after the deletion, by paying the Entrance Fee, the distributor gets back its distributor status. However the deletion results in the loss of the old structure that is not recovered with the new distributor status. The distributor status may be recovered after 1 month only in case the distributor performed no activity for Cloud Hotel ERP during this period.
Any distributor who wishes to continue their distribution activity on another sponsor line can request the deletion of their distributor status at Cloud Hotel ERP in writing. In case the request is approved, after 1 month of inactivity and the purchase of the Entry Fee, they can continue their distribution work on another sponsor line.
The distributor cannot answer the questions of the press in connection with Cloud Hotel ERP, its services, the Compensation Plan of Cloud Hotel ERP or other services offered by Cloud Hotel ERP. The distributor is obliged to forward all questions from the press immediately to Cloud Hotel ERP.
The distributor may only market the services for Cloud Hotel ERP in those countries (states), or recruit further distributors, where Cloud Hotel ERP officially opened its market.
A distributor, who is a sponsor at the same time, as well, shall be obliged to support and train its lower line. For example the sponsor is obliged – including but not limited to – keep trainings to its lower line about sales techniques and services (including handing over all legally relevant contractual documentation), inform them about the compensation plan. The sponsor receives no compensation for this activity, since he receives commission based on the success of its lower line.