3.22 Sale, Transfer, or Assignment of ACTIVZ Business
Although an ACTIVZ business is a privately owned and independently operated business, the sale, transfer of an ACTIVZ business, and the sale, transfer or assignment of an interest in a Business Entity that owns or operates an ACTIVZ business, is subject to certain limitations. If a Distributor wishes to sell his or her ACTIVZ business, or interest in a Business Entity that owns or operates an ACTIVZ business, the following criterea must be met:
- The selling Distributor must offer ACTIVZ the right of first refusal to purchase the business on the same terms as agreed upon with a third-party buyer. ACTIVZ shall have fifteen days from the date of receipt of the written offer from the seller to exercise its right of first refusal.
- The buyer or transferee must become a qualified ACTIVZ Distributor. If the buyer is an activz ACTIVZ Distributor, he or she must first terminate his or her ACTIVZ business and wait six calendar months before acquiring any interest in a different ACTIVZ business;
- Before the sale, transfer or assignment can be finalized and approved by ACTIVZ, any debt obligations the selling party has with ACTIVZ must be satisfied.
- The selling party must be in good standing and not in violation of any of the terms of the agreement in order to be eligible to sell, transfer or assign an ACTIVZ business.
Prior to selling an independent ACTIVZ bsuiness or Business Entity interest, the selling Distributor must notify ACTIVZ Compliance Department in writing and advise of his or her intent to sell his/her ACTIVZ business or Business Entity interest. The selling Distributor must also receive written approval from the Compliance Department before proceeding with the sale. No changes in line of sponsorship can result from the sale or transfer of an ACTIVZ business. In the event that a Distributor transfers, assigns, or sells his or her ACTIVZ business without the express written approval of the Compliance Department, such transfer, assignment, or sale shall be voidable in the sole and absolute discretion of ACTIVZ.
ACTIVZ and the Compliance Department reserve the right to approve or reject any request at its descretion.