Company Retail/70 Percent Policy. The Company sales and marketing program is based upon retail sales to the ultimate consumer. Every aspect of the program is designed to assist our associates in the marketing of fine products to the general consuming public. As a dual consumer safeguard, of the utmost importance to the Company is the policy that associates should purchase products in commercially reasonable quantities, and under no circumstances may associates cause others to purchase products in amounts that are not reasonably expected to be sold to the consuming public or in unreasonable amounts for personal or family use. In furtherance of these policies, the Company has adopted specific rules on retail sales and retailing referenced as the Company retail/70 percent rules. In the interest of protecting the consumer and the opportunity of its associates, the Company enforces this rule through a verification program.

• Retail Rule.
  Although the primary function of the Company is to sell products to the general consuming public, the Company realizes that its associates may wish to purchase product for personal or family use in reasonable amounts. For this reason, the Company defines a retail sale to include sales to nonparticipants, as well as purchases for personal or family use in reasonable amounts, which are not made solely for purposes of qualification or advancement. This is a standard followed by leading direct selling companies. Notwithstanding this policy, the Company, in order to specifically further retail selling, has adopted a requirement that an associate will not be eligible for bonuses or overrides unless he or she has made at least 2 sales per month to nonparticipant retail customers.
• 70 Percent Rule.
  As with other leading direct selling companies, the Company has adopted a 70 percent rule. Under this rule, Company associates may not order additional product unless they have sold or used for personal or family use at least 70 percent of previously purchased inventory-type product. This verification form is also intended to support the 70 percent rule policy.

Retail Sales/70 Percent Rule Audit Verification Program. In its effort to support and enforce the retail sales/70 percent rule, the Company on a quarterly basis will conduct random audit verification follow-ups. Representatives of the Company will contact associates to further verify compliance with the retail sale/70 percent rule. Associates should maintain records and be prepared to assist Company representatives in their task.

• The name of the Company and other names as may be adopted by the Company are proprietary trade names and trademarks of the Company. As such, these marks are of great value to the Company and are supplied to associate for associate's use only in an expressly authorized manner. Associate agrees not to advertise the Company products in any way other than the advertising or promotional materials made available to associate by the Company. Associate agrees not to use any written, printed, recorded or any other material in advertising, promoting or describing the products or the Company marketing program, or in any other manner, any material which has not been copyrighted and supplied by the Company, unless such material has been submitted to the Company and approved in writing by the Company before being disseminated, published or displayed.
• The associate, as an independent contractor, is fully responsible for all of his\her verbal and written statements made regarding the product or marketing program which are not expressly contained in writing in the current associate agreement, and advertising or promotional materials supplied directly by the Company. Associate agrees to indemnify the Company and hold it harmless from any and all liability including judgments, civil penalties, refund, attorney fees, court costs or lost business incurred by the Company as a result of associate's unauthorized representations.
• The Company will not permit the use of its copyrights, designs, logos, trade names, trademarks, etc. without its prior written permission.
• All Company materials, whether printed, on film, produced by sound recording, or on the internet, are copyrighted and may not be reproduced in whole or in part by associates or any other person except as authorized by the Company. Permission to reproduce any materials will be considered only in extreme circumstances. Therefore, an associate should not anticipate that approval will be granted.
• A Company associate may not produce, use or distribute any information relative to the contents, characteristics or properties of Company product which has not been provided directly by the Company. This prohibition includes but is not limited to print, audio or video media.
• A Company associate may not produce, sell or distribute literature, films or sound recordings which are deceptively similar in nature to those produced, published and provided by the Company for its associates. Nor may an associate purchase, sell or distribute noncompany materials which imply or suggest that said materials originate from the Company.
• Any display ads or institutional or trademark advertising copy, other than covered in the foregoing rules, must be submitted to the Company and approved in writing by the Company prior to publication.
• All advertising copy, direct mailing, radio, TV, newspaper and display copy must be approved in writing before being disseminated, published or displayed with the exception of blind ads where no reference is made to the Company name or product name.

Internet and Website Policy.
No associate may independently design a website that uses the names, logos, product descriptions of the Company, nor may an associate use "blind" ads on the internet making product or income claims which are ultimately associated with Company products or the Company's compensation plan. Any person using Company names, logos, trademarks, etc. on the internet or any other advertising medium, except as permitted by Company Rules and Regulations, shall be subject to immediate discipline, including termination of associate status.

• There must be a functioning return email address to the sender.
• There must be a notice in the email that advises the recipient that he or she may reply to the email, via the functioning return email address, to request that future email solicitations or correspondence not be sent to him or her (a functioning "opt-out" notice).
• The email must clearly and conspicuously disclose that the message is an advertisement or solicitation.
• The use of deceptive subject lines and/or false header information is prohibited.
• All opt-out requests, whether received by email or regular mail, must be honored. If an associate receives an opt-out request from a recipient of an email, the associate must forward the opt-out request to the Company.

• Store or produce telephone numbers to be called, using a random or sequential number generator; and
• To dial such numbers.

• To any person with that person's prior express invitation or permission; or
• To any person with whom the associate has an established business or personal relationship. The term "established business or personal relationship" means a prior or existing relationship formed by a voluntary two-way communication between an associate and a person, on the basis of:
  
  (1) An inquiry, application, purchase or transaction by the person regarding products offered by such associate; or
  (2) A personal or familial relationship, which relationship has not been previously terminated by either party.

• Written notarized agreement signed by both parties indicating who will retain the associate position.
• A court order delineating who receives custody over the associate position.
• Both parties may choose to retain their joint associate position and operate it as a partnership.

• Contact the Company within thirty (30) days of the disability and advise the Company of the associate's status and the plans for future management or cancellation of the associate position.
• Provide notarized or court confirmed copy of appointment as legal representative or conservator.
• Provide notarized or court confirmed copy of document establishing right to administer the Company business.
• Should the legal representative or conservator plan to continue the business of the associate position, then he/she shall fill out a new associate application/agreement and receive the required training consistent with the disabled associate's level at the time of disability.
• These requirements shall be satisfied within a deadline of six months.

• An associate position may change status under the same sponsor from individual to partnership or corporation or from partnership to corporation with proper and complete documentation.
• To form a new associate position as a partnership or corporation or to change status to one of these forms of business, you must request a partnership/corporation form from the corporate home office. This form must be submitted detailing all partners, stockholders, officers or directors in the partnership or corporation. The partner or officer who submits the form must be authorized to enter into binding contracts on behalf of the partnership or corporation. In addition, by submitting the partnership/corporation form, you certify that no person with an interest in the business has had an interest in an associate position within three (3) months of the submission of the form (unless it is the continuation of an existing associate position that is changing its form of doing business).

• An individual can have only one associate position in the Company. He/she may not own any other associate position, either individually or jointly, nor may he/she participate as a partner, owner, stockholder, trustee, director, or association member in more than one associate position in any form.
• An individual shall provide the Company with a Social Security Number or a Taxpayer Identification Number (TIN) on an IRS W-9 form. No individual operating under a fictitious name and no partnership, corporation or other business entity may become a Company associate without submitting an "Entity Information" form following enrollment of proprietorship, corporation, Limited Liability Corporation (LLC), trust or partnership.
  
  (1) Proprietorship: A copy of fictitious name filing must be submitted, plus a W-9 form.
  (2) Corporation: Copies of articles of incorporation are required, including the page with state seals and notarization. These articles will show who the principals are and prove validation of Federal ID Number/Business Number/E.I.N, plus a W-9 form.
  (3) LLC: IRS acceptance only. The name on the IRS acceptance is required to state the LLC in order to use it as an LLC, plus a W-9 form.
  (4) Trust: An affidavit of trust with the notarized copy of the power of attorney is necessary. If Federal ID Number is to be used and is not noted in the affidavit, an IRS acceptance will be required, plus a W-9 form.
  (5) Partnership: To register as a partner, complete the partnership portion of the Entity Information form, along with all signatures that apply, plus a W-9 form.

• Issuance of a written warning or admonition.
• Imposition of a fine, which may be imposed immediately or withheld from future commission checks.
• Reassignment of all or part of an associate's organization.
• Suspension, which may result in termination or reinstatement with conditions or restrictions.
• Termination of the associate.

• When a decision is made to terminate an associate position, the Company will inform the associate in writing that the associate position is terminated immediately, effective as of the date of the written notification. The termination notice will be sent by certified mail to the associate's address on file with the Company.
• The associate will have 15 days from the date of mailing of the certified letter in which to appeal the termination in writing, and provide written response to the finding of violations of Company agreement, policies and/or rules. The associate's appeal and/or response correspondence must be received by the Company within 20 days of the Company's termination letter. If the appeal is not received within the 20 day period, the termination will be automatically deemed final.
• If an associate files a timely appeal of termination, the Company will review and reconsider the termination, consider any other appropriate action, and notify the associate of its decision. The decision of the Company will be final and subject to no further review. In the event the termination is not rescinded, the termination will be effective as of the date of the Company's original termination notice.

• As a general rule, it is good practice to regard the first associate to meaningfully work with a prospective associate as having first claim to sponsorship, but this is not necessarily controlling. Basic tenets of common sense and consideration should govern.
• As a convenience to its associates, the Company may provide various methods of registering or informing the Company of newly sponsored associates, including online internet registration, telephone registration and facsimile registration. Until such time as the Company receives an application, either as hard copy or by facsimile, containing all appropriate information, as well as the signature of the proposed new associate, the Company will only consider the internet, telephone or facsimile registration in the category of "intended" recognition of sponsor. Thus, although the Company is attempting to create some convenience for its sponsoring associates, it is the responsibility of the sponsoring associate to cause delivery to the Company of a completed and signed associate agreement if the sponsor is to expect formal recognition as the official sponsoring associate.
• There is no "magic" involved in the Company or in any business. Those who sponsor widely but who do not help new associates develop their business meet with limited success. Therefore, a responsibility of sponsorship is to work with new associates, helping them learn the business and encouraging them during the critical early months.
• Sponsors are not required to carry inventory of products or sales aids for new associates. When tangible product is involved, associates who do so, however, find building a major sales organization much easier because of the decreased response time in meeting a new associate's needs.
• When soliciting a prospective associate to join the Company's network program, the associate must clearly explain the following:
  (1) Products: type, performance and quality of each product.
  (2) Compensation plan
  (3) Policies and Procedures.
  (4) Associate's rights and duties.
  (5) Other important items that will affect the judgment of the prospective associate.

• Transfers will generally be approved in three (3) circumstances only:
  (1) In the case of unethical sponsoring by the original sponsor. In such cases, the Company will be the final authority.
  (2) With the written approval of the immediate five (5) upline sponsors.
  (3) Resigning from the Company entirely and waiting three (3) months to reapply under the new sponsor.
• In cases of unethical sponsoring, the individual may be transferred with any downlines intact; in all other events, the individual alone is transferred without any downline associates being removed from the original line of sponsorship.

• Supervisory responsibility requirements as outlined herein.
• 70% rule on resale of wholesale product ordered, and
• Retail sales rule requiring sales to at least 2 nonparticipant retail customers per month.
• The requirement that his/her downline has retailed product which has been purchased at wholesale.

• No advertisement may imply that a "job" or "position" is available.
• No specific income can be promised.
• Advertisements must contain no misleading facts or distortions of the Company opportunity or product line.

• You may call family members, personal friends, and acquaintances. An "acquaintance" is someone with whom you have at least a recent first-hand relationship within the preceding three (3) months. Bear in mind, however, that if you make a habit of "card collecting" with everyone you meet and subsequently calling them, the FTC may consider this a form of telemarketing that is not subject to this exemption. Thus, if you engage in calling "acquaintances," you must make such calls on an occasional basis only and not make this a routine practice.
• The prospect's personal inquiry or application regarding a product offered by the associate, within the three (3) months immediately preceding the date of such a meeting.
• If the associate has an established business relationship with the prospect. An "established business relationship" is a relationship between an associate and a prospect based on the prospect's purchase, rental or lease of goods or services from the associate, or a financial transaction between the prospect and the associate within the eighteen (18) months immediately preceding the date of a telephone call to induce the prospect's purchase of a product or service.
• If the associate receives written and signed permission from the prospect authorizing the associate to call. The authorization must specify the telephone number(s) which the associate is authorized to call.
• In addition, associates shall not use automatic telephone dialing systems relative to the operation of their Company businesses. The term "automatic telephone dialing system" means equipment which has the capacity to (a) store or produce telephone numbers to be called, using a random or sequential number generator, and (b) to dial such numbers.

• Violation and/or lack of compliance with terms of the associate agreement, policies and procedures, rules and regulations, marketing program manual or guidelines or any other directive from the Company as to method and manner of operation of the independent associate business;
• Engaging in any conduct not authorized by the Company in the Company market program;
• Any fraud, negligence or willful misconduct in the operation of the independent associate business;
• Misrepresentation or unauthorized representation regarding the Company's product, marketing opportunity or potential or the Company's marketing program;
• Failure to adhere to any federal, state or local law, regulation, ordinance and/or any order or rule issue by any court of appropriate jurisdiction;
• Engaging in any action which exceeds the scope of authority to the associate as granted by the Company;
• Engaging in any activity over which Company has no effective control as to the actions of the associate.
• Engaging in the general business operations of associate's business.