THIS DOCUMENT IS TO BE USED ONLY FOR THE PURPOSES OF EXPLAINING THE SEACRET DIRECT JAPAN OPPORTUNITY. YOU MUST LEAVE AN ORIGINAL JAPANESE COPY OF THE WITH ANY PERSON WITH WHOM YOU DISCUSS THE SEACRET OPPORTUNITY. SEACRET Direct Japan LLC (Further referred to as SEACRET Direct Japan LLC, SEACRET Direct, SEACRET Japan, SEACRET or Our Company ) falls under the category of Multilevel Marketing under the Specified Commercial Transaction Law. When registering an with SEACRET Direct Japan LLC, please thoroughly read and understand the following document and all that it entails. When introducing the business that is SEACRET, please explain this document thoroughly and leave it with the prospect regardless of their final decision to join or not. The number on the front of the document is a unique control number, there are no duplicates. Campaigns and promotions will take precedence over this document s contents. SEACRET s are registered salespersons under agreement with SEACRET Direct. They are able to do business with SEACRET by directly stocking products from SEACRET and selling them to customers. They are further able to receive bonuses and commissions based on the ranks and achievements as outlined by the compensation plan set by SEACRET through their organization and sales network. s must conduct themselves according to the laws under the Specified Commercial Transaction Law, Pharmaceutical Affairs Law, and other related legal restrictions. 1. NAME/ADDRESS/PHONE NUMBER/EMAIL SEACRET Direct Japan LLC Representative of Japan Office: Izhak Ben Shabat Seika Bldg. 7F 2-7-6 Kayaba-cho Nihonbashi Chuo-ku Tokyo 103-0025 Telephone: 03-6206-2501 Fax: 03-6206-2725 Customer Service Toll-free Number: 0800-888-0311 E-mail: jp-cc@seacretdirect.com 2. NAME OF THE PRODUCTS AND TYPES OF PRODUCTS Names of products: For individual product names, prices, characteristics and ingredients, please see the product list, Catalog and SEACRET Direct Website. Types of products: Cosmetics, Skincare, Hair Care and others (SEACRET goods: s aren t obligated to buy collaterals when they start the Seacret business.) 3. TERMS AND CONDITIONS FOR AGENT REGISTRATION/RULES OF REGISTRATION I. Registration as an individual i. An individual shall be older than 20 years of age (excluding students). ii. An individual shall possess Japanese nationality. An individual having foreign nationality shall have the documents which prove the qualifications of the individual such as a certificate of alien registration, a residence card, and a special permanent resident certificate and shall have the status of residence which makes it possible to engage in referral sales activities within Japan. iii. An individual shall not duplicate his or her registration. An may not have more than one registration (including a case where a company incorporated abroad outside Japan has an registration or an is acting as the representative of a company registration). In addition, in a case where a husband and a wife are registered, the registration shall be in either or both names but each shall not be registered individually. A SEACRET Customer or VIP/Elite Customer cannot register him/herself as an. It is considered to be duplication. In that case, he/she needs to submit a form to transfer to. iv. Individuals must be of sound mind and body in order to enter into this agreement. Persons judged incompetent or quasiincompetent, or persons receiving assistance are not eligible to become SEACRET s. v. The registrant shall not be a person who used to be an of SEACRET and was terminated for cause. In addition, the case of close relatives and related parties of previously terminated s shall be in accordance with the judgment of SEACRET. vi. Individuals who are government employees, etc. who are prohibited from dual employment in accordance with the laws and ordinances may not register as s with SEACRET. vii. s must register with their full, legal name (names other than legal name such as a trade name or a popular name shall not be accepted). viii. No less than 6 months shall have elapsed after the completion of the voluntary cancellation and the cooling-off. under a new enroller, 6 months must have passed before re-enrolling. ix. The main account address shall be within Japan. x. The Agreement must be observed and the instructions of SEACRET must be followed. xi. The individual shall not have a close relationship with anti-social forces such as crime syndicates or their organizations. In addition, they shall not be collaborators of a business such as a representative or an employee, etc. (Moreover, in a case where having said relationship becomes clear, the registration shall be cancelled without notification.) xii. The information contained in the written application for the registration shall be truthful. xiii. SEACRET Direct Japan may, at its sole discretion, determine that an individual may not become a SEACRET or continue as a SEACRET. xiv. Prospective s must possess the ability to register a bank account under their legal name. II. Registration as a corporate business i. The company shall be a business company (stock corporation, unlimited partnership, limited partnership, and limited liability company) established in Japan. Or it shall be a foreign business corporation registered in Japan. In addition, it shall submit a public certificate which confirms that it is a correctly established company. ii. The person having the power of representation of the corporate body shall satisfy all the conditions of Section 1: Individual Registration. iii. In a case where those having the power of representation of the corporate body are two or more persons, all of them shall confirm that they have consented to the registration in writing. iv. A person having the power of representation of a company shall not be registered individually (including a registration of one of married couple).
v. A representative of a company shall be an individual (in a case where a representative is two or more persons, all of them shall be treated as one individual). vi. Prospective s must possess ability to register a bank account held as a corporate entity. 4. AGENT S OBLIGATIONS The following obligations must be satisfied in order to become an and be eligible to participate in the SEACRET compensation plan. (All prices are the amount before-tax). must pay the registration fee of 5,000 (tax not included) once at the time of registration*1. Renewal of the membership will be every year after the registration and a renewal fee will be automatically charged to the credit card on file ( 5,000, tax not included). The purchase price of the products of SEACRET and the shipping cost. *1 The Launch Kit is included in the registration fee (catalog, compensation plan brochure, sponsor pack, sample products, and other materials). 5. PRODUCT PAYMENT METHODS AND PRODUCT DELIVERY TIMEFRAME SEACRET products will be ordered through an and self-consumed or sold to customers. The method of ordering shall be by fax, telephone, or email. Ordered products shall be delivered by an express home delivery service generally in 3 to 4 days (not including non-business days). In addition, a shipping and handling fee (tax not included) will be charged. If the delivery company is not able to deliver the package after the initial attempt, the company will leave the customer a message and will store the package at the delivery facility for one week after the notification. If the customer does not contact the carrier to arrange delivery within one week, the package will be returned to SEACRET. Payment for ordered products and the shipping and handling fee will be made in advance by remittance to the designated bank account or by credit card (VISA, MasterCard, and JCB). SEACRET will not accept Cash on Delivery (COD) orders. Bank Account: Mitsuisumitomo Bank Kanda Branch (Norm) 3091321 SEACRET Direct Japan LLC 6. COOLING-OFF I. Stipulation of Cooling-off The may cancel the registration and product purchase made during the registration for any reason up to 20 days from the enrollment date or the delivery date of the first order, whichever date is later. This is referred to as the cooling off provision. If an wishes to take advantage of the Cooling Off Period, they must complete a document and must include: enrollment date or the delivery date of the product (Starter Set) purchase requested during enrollment - whichever date is later, ID, name, registration address, registration telephone number, cooling off wording and the reason for the cancellation (cooling off becomes effective from the time sent). Our company shall bear the product return expense during the Cooling Off Period. Please send product COD to the logistics center. i. In the case that the customer misunderstood their rights under the Cooling Off Period or the Cooling Off Period was misrepresented by the sponsor in order to prevent exercise of the Cooling Off Period, or that cooling off was not exercised due to an act such as threatening behavior, the Cooling Off Period may be exercised for 20 additional days calculated from the date when the document indicating the cooling off is received followed by a verbal explanation of this content ii. The Cooling Off Period does not apply to an which is a company. II. When Cooling-Off is applied: i. All rights and benefits of an are forfeit. ii. The entire amount of the product price will be quickly refunded when the registration fee has already been paid minus any commissions paid. iii. SEACRET will not invoice any penalty and other damages or pick-up costs to an invoiced for cancellation according to cooling off. 7. CANCELLATION AND EXPIRATION OF AN AGENT CONTRACT s are able to terminate their account with SEACRET at any time. If the meets the criteria for Returns Coinciding with Early Account Termination, the will be able to return their products. s wishing to terminate their account must fill out and send the Account Termination Request Form to the company. Postage will not be paid by the company. An s registration will expire if no action is taken to renew their registration one year after their last registration date. 8. RETURNING PRODUCTS AFTER THE COOLING-OFF PERIOD I. Product Quality Mail back the products COD after communicating with SEACRET. SEACRET will bear the entire amount of the postage. Upon arrival of the products, SEACRET will replace the product at no additional cost. SEACRET will also refund the entire order if desired. Please call Customer Care beforehand for any questions. II. The case of an returning inventory product or intermediate term cancellation and product return i. This shall only occur in a situation where the conditions below are satisfied. The him/herself purchased the product and the return of the product is the intention of the individual in question. (Documentation evidencing the purchase by the individual is necessary.) The product to be returned must have been purchased (received date) within 90 days previous to the product return request and the product shall be unused, unopened, and in resalable condition. This shall not apply to a company which is associated with intermediate-term cancellation. ii. The refund will be 90% of the product purchase price (including tax). Moreover, original postage, handling charges, and delivery charges, which were born by the, will not be refunded. iii. Any bonuses earned by the account due to the presence of a qualifying order, which was returned, will be deducted from the return amount payment. If the amount of commissions earned is greater than the return order amount, then the shall owe the company the remaining amount. The calculation of commissions paid upline on the returned product will be deducted from the commission of the following week. iv. An shall automatically lose the qualification when the makes a return of 30,000 or more (excluding consumption tax). v. The refund amount for a returned product price shall be made after the conclusion of processing of the returned product. the company will perform inspection and investigation of the returned order prior to making payment. This will include any adjustments in case of commissions owed.
9. IMPORTANT LEGAL REQUIREMENTS A SEACRET who does not comply with laws relating to the Act of Specified Commercial Transactions (specific trade law) may be subject to punishment under the relevant laws and regulations such as criminal law, pharmaceutical affairs law, and consumer contract law. When recruiting or selling, you must explain to the other party that the business of SEACRET is defined as Multilevel Marketing under the Act on Specified Commercial Transactions and fully explain the matters below I. Delivery of Documents (Article 37 of the Act on Specified Commercial Transactions) i. When soliciting, irrespective of whether the other party intends to become a SEACRET or not, you must provide the latest Gaiyoshomen (Summary Document) which has the sponsor section filled in, and the content must be explained to the other party. ii. Following conclusion of the contract, be sure to provide guidance to make sure the other party fully understands the Keiyakushomen (Contract Document) which is to be sent as soon as possible. The document along with confirming the contract content has the critical starting date of cooling off (contract cancellation). Provide explanation regarding the contract as necessary. II. Name, etc., and the explicit solicitation purpose (Act of Specified Commercial Transactions, paragraph 2 of Provision 33) Clearly explain to the other party prior to performing solicitation, your name (company name in the case of a company and the name of the individual acting to solicit), our company name, that you are an of SEACRET, and the specific obligations of the business that is the purpose of solicitation. III. Matters pertaining to prohibition of misrepresentation (Specified Commercial Transactions Act Provision 34), and other compliance matters. i. The matters below must be explained and confirmed when soliciting The kind and quality of product Specific obligations Contract cancellation (including cooling off) Specific benefit (bonus and commission) Other, critical matters that influence the decision of the party to the transaction. ii. It is considered a crime under the Act of Specified Commercial Transactions to not share critical facts when recruiting or selling or to share information that which is not true with regard to the above items or in order to prevent cancellation of contract. iii. It is considered a crime under the Act on Specified Commercial Transactions to confuse through explanation in the case of soliciting or to act in an intimidating manner to the other party. iv. It is considered a crime under the Act of Specified Commercial Transaction to recruit or sell without stating the purpose of the meeting beforehand, to stop a prospect in a place other than a business office, agency office, and business office, and using a place such as an office, home, or seminar hall that is not freely accessible to the public to which the person is drawn by a method requesting to visit a specific place for some other purpose such as another appointment. v. It is prohibited to solicit minors, students, and persons judged incompetent and public workers. vi. It is prohibited to repeatedly conduct solicitation without allowing a time interval to pass to persons who have said they do not need SEACRET product(s) or refuse solicitation to a business network. vii. Advertising such as via email without obtaining approval of the party is prohibited. viii. Intellectual property rights such as trademark, company name, and logos may not be used without the permission of our company. ix. Please conduct solicitation in accordance with the latest terms complying with the related laws and regulations of the Act on Specified Commercial Transactions. 10. SPECIFIED PROFIT (COMPENSATION PLAN) The may be eligible to earn bonuses and commissions according to the SEACRET Compensation Plan. This right shall be granted only to the receiving and this right may not be transferred. When talking about compensation income, you must clearly state that it is not necessarily a general average amount, and that the amount earned is solely according to the result of the individual s activities. I. Conditions to be Eligible to Earn The necessary conditions to be eligible to receive bonus and commissions are: i. The is active *1. ii. At least one active *1, personally sponsored on the right side and one active*1, personally sponsored on the left side. iii. The must meet each qualification of each bonus type. *1: s must have 50 BV, 4 personally enrolled VIP / Elite customers with a minimum \6,000 purchases (not including shipping and tax) or 200 TPV within the past four weeks. II. The SEACRET volume period is one week and runs from 00:00 US Pacific Standard Time Monday through 23:59 on Sunday. This is 17 hours behind Japan Standard Time. III. Payment of Commissions (Evey bonus payout includes tax.) i. Payment is made on Friday two weeks following the conclusion of the weekly period (closing on Sunday.) Commission is directly deposited into each s bank account registered at the time of registration. ii. Commissions payment will be made when the earned amount minus any fees is 2,000 or more. iii. An administrative charge of 250 will be deducted from each remuneration payment. IV. Point Generation (Volume) Business Volume (BV) is established for the various SEACRET products and the actual commissions calculations are totaled for product purchased by the and his/her team. V. SEACRET Compensation Plan The SEACRET Compensation Plan is a binary plan. An is registered either to the right or left below the position of his or her sponsor. The position to the right or left will be established at the time of registration. There is no priority associated with the right or left. The sponsor holds these 2 downline positions and further develops and builds the team. Moreover, the sponsor may specify and register the position of the downline. A position, once registered, remains even if there is an cooling off or cancellation and may not be registered by a new i. Fast Start Bonus/Double Fast Start Bonus Sponsors may earn a predetermined bonus when the new purchases a Starter set during registration. If a sponsor is already Superstar or higher (paid rank) when enrolling a new agent, he/she is eligible to receive the Double Fast
Starter Set Active/Star Superstar or higher Special 15,000 30,000 Premium 5,000 10,000 Starter Set Content (Product Name/Quantity) Special Foot Cream 1 Hand Cream 1 Premium Face Cleansing Milk 1 1 Peeling Milk 1 Intensive Moisturizer Face Cream 1 Balancing Facial Serum 1 Essential Nutrition Eye Gel 1 Mineral Soap 1 Body Butter 1 1 Mineral and Oil Scrub 1 1 Nail Care Collection 1 Mud Soap 1 1 Mineral-Rich Facial Gel/ Peeling Type 1 1 Mineral-Rich Magnetic Mud Mask (M4) 2 1 Mineral-Rich Mud Mask 1 1 Mineral-Rich Toner 1 Advanced Solutions Moisturizer 1 Advanced Solutions Eye Cream 1 Advanced SolutionsFace Serum 1 Advanced Solutions Eye Serum 1 Mud Shampoo 1 1 Mud Conditioner 1 1 BB Cream 1 R-Day Masque 3 2 Sample Set (Facial Serum. Day Mask, Moisturizer, Eye Serum) 1Set (3 each) 1Set (3 each) Set Price (excluding tax) 175,000 65,000 BV 1,000 300 Start Bonus. If the sponsor doesn t reach the appropriate rank for even a moment, he/she isn t eligible for it. ii. Team commission In a given week, the Total Group Volume (TGV) evaluated for a given business center is a summary of the current week s new Group Volume (GV) on the left and right legs and the Carry Forward Group Volume on the left and right legs from the prior week. Team Commission is earned when an accumulates in increments of 1,500 TGV where 500 GV is in the Lesser-Volume leg and 1,000 GV in the Greater-Volume leg. a. This is a 1/3 2/3 balanced plan where the BV on the Lesser-Volume Leg must be offset by twice that BV on the Greater-Volume Leg. b. Greater-Volume Leg matching is always in increments of 1,000 GV and the Lesser-Volume Leg matching in increments of 500 GV Team Commission is a percentage of the Lesser-Volume Leg s GV. The percentage paid is based on the s Paid Rank. Paid rank of Star through Executive will earn 10% and Paid Rank of Bronze and up will earn 15%. iii. Leadership Check Match Paid Rank Bronze and Above s are eligible to receive the Leadership Check Match Bonus. The bonus is a percentage of the Team Commission earnings of personally sponsored downline s that have a paid rank of Bronze or
Generation 1 2 3 4 Bronze 20% Royale 20% Silver 20% 10% Gold 20% 10% Platinum 20% 10% 10% Ruby 20% 10% 10% Diamond 20% 10% 10% 10% Blue Diamond 20% 10% 10% 10% Red Diamond 20% 10% 10% 10% Crown 20% 10% 10% 10% Crown Royale 20% 10% 10% 10% above within your enroller tree. The bonus is paid on up to four (4) generations of personally sponsored s. iv. Rank Advancement Bonuses A Rank Advancement Bonus will be received when the rank of Star is achieved. This bonus will be paid each time a new high rank is achieved. Payment is divided for those above Blue Diamond, and subsequent payments are paid only if the achieved rank is maintained or surpassed. v. Lifestyle Bonus The Lifestyle Bonus will pay every four weeks to those who achieve and maintain the paid rank of Royale or higher. The qualification of each rank must be maintained during the four (4) week period in order to receive the bonus. If s fall out of qualification at a certain point of the period, the Lifestyle Bonus won t pay. To be re-qualified for the bonus, they must maintain the rank for four consecutive pay period again. Rank Rank Advancement Bonus Life style Bonus Star *1 1,500 Superstar* 2 20,000 10,000 Executive Watch Bronze 30,000 Royal 50,000* 3 50,000 Silver 100,000 50,000 Gold 150,000 50,000 Platinum 300,000 50,000 Ruby 400,000 50,000 Diamond 700,000 50,000 Blue Diamond 4,000,000* 4 50,000 Red Diamond 10,000,000* 4 50,000 Crown 25,000,000* 4 50,000 Crown Royal 100,000,000* 4 50,000 *1 Star s need at least one Active on both right and left groups. *2 20,000 will be paid when achieving Super Star rank within 4 weeks of registration and 10,000 will be paid if achieved after 4 weeks. *3 This will be 50,000 plus 10,000 during 2015. *4 Installment payments The rank advancement bonus is paid in installments for Blue Diamond and above. You must maintain or surpass the rank in order to earn subsequent weekly installments. You have up to 3 years to collect all of the installments per rank advancement.
The number of installment payments and amounts are listed below. Installments will be paid weekly if you maintain or surpass your rank. Blue Diamond 6 installments ( 1,000,000 first time + 5 payments of 600,000 each) Red Diamond 15 installments ( 1,500,040 + 14 payments of 607,140 each) Crown 26 installments ( 2,000,000 +25 payments of 920,000 each) Crown 52 installments ( 5,000, 260 + 51 payments of 1,862,740 each) 11. RANK ACHIEVEMENT REQUIREMENTS s must satisfy the conditions to be eligible to earn per section 1 and achieve the conditions in the table below to achieve or maintain rank. Rank Group Volume Achievement Group Volume Achievement Left Right Star Superstar* 1 One active personally sponsored Personally sponsored with 300 TPV One active personally sponsored Personally sponsored with 300 TPV Executive 1,000BV 1,000BV Bronze 2,000BV 2,000BV Royal 5,000BV + Star 5,000BV + Star Silver 8,000BV + Super Star 8,000BV + Super Star Gold 14,000BV + Bronze 14,000BV + Bronze Platinum 20,000BV + Bronze 20,000BV + Bronze Ruby 40,000BV + Silver 40,000BV + Silver Diamond 80,000BV + Gold 80,000BV + Gold Blue Diamond 200,000BV + Platinum 200,000BV + Platinum Red Diamond 400,000BV + Ruby 400,000BV + Ruby Crown 800,000BV + Diamond 800,000BV + Diamond Crown Royal 2,000,000BV 2,000,000BV +Blue Diamond +Blue Diamond Anyone above Executive must have achieved Superstar rank. For Superstar, s must be eligible and have at least one personally enrolled in there right and left group that have achieved 300 TPV within four weeks. Special Coding: A program that will apply for 12 weeks to any new that registered with a Starter Set. Applied Bonuses: 1. Team Commission 15% 2. Leadership Check Match Program 1st Generation 20% 3. WOW Bonus 25% 4. Customer Bonus 25% *1 Eligible Superstar means an who has achieved 300 TPV once. This eligibility has been maintained until the becomes Superstar. 12. RULES FOR PERFORMANCE ATTAINED BV will be calculated on product acquisition and new agent registration during qualifying periods. The BV that are your achievements will travel up the tree. BV transfer from Customer orders: the volume after deducting 200BV from TPV (including BV from Customer orders) will count towards the lesser group and will be used to calculate rank advancement. If both groups have the same volume, it will be automatically added to the inside group. If your account is not active (35 BV, 200 TPV or 4 active VIP/Elite Customers), all accrued volume will flush. Volume will resume accruing once you have made your account active using one of the three methods above. Campaigns, promotions and policy updates will take precedence over any aforementioned policies. 13. CUSTOMER PROGRAM AGENT SPECIFIED BENEFITS i. WOW Bonus (First order bonus) This bonus only applies to the first product purchase of a VIP or Elite Customer that you introduce. a. Active to Executive : 20% of the first order subtotal (product total not including tax or shipping). b. s higher than Bronze: 25% of the first order subtotal (product total not including tax or shipping). BV from Customer orders will count towards the lesser volume leg on your Binary Tree, and will be used to calculate rank advancement, however, it will not be reflected towards your team commissions. The full BV amount will be applied to your upline s group volume. ii. Customer Bonus This bonus will be applied to all purchases after the first purchase that a VIP or Elite Customer that you introduce. a. Star to Executive : 20% of the order s BV amount
b. s higher than Bronze: 25% of the order s BV amount The referred total Customer BV will be applied to your weaker leg for rank advancement, but the CV (Commissionable Volume) will not be reflected. iii. Enroll 4 and Pay No More! This bonus will be applied when there are 4 or more VIP rank or higher customers you introduced with purchases greater than 6,000 (not including tax or shipping). This will be calculated monthly. 25% of the total of these 4 or more Customers order subtotals can be used as credit for your next month s SRS order. This credit can t be used for paying tax or shipping fee. iv. PC Pool Sharing Bonus The PC Pool is made up of 2% of all the participating countries Customer Sales for a month. When you introduce 10 VIP or Elite Customers with purchases of 6,000 or more in a month, you qualify for a share of the PC Pool. You can earn an additional share for every additional 5 Customers who meet the above qualifications. Effective on August 24, 2015