[COMPANY] POLICIES AND PROCEDURES

DECEMBER 2010
POLICIES AND PROCEDURES TABLE OF CONTENTS
[30 pages]
SECTION 1- WAIVER
Waiver 1.1

SECTION 2- BECOMING A MEMBER

Code of Ethics 2.1
Requirements to Become a Member 2.2
Becoming a Non-profit Member 2.2.1
Member Benefits 2.3
Renewal of Your Company Business 2.4

SECTION 3-OPERATING A COMPANY BUSINESS

Adherence to the Company Marketing and Compensation Plan 3.1
Advertising 3.2
In General 3.2.1
Trademarks and Copyrights 3.2.2
Media and Media Inquires 3.2.3
Enrolling Materials 3.2.4
Advertising Guidelines 3.2.5
Sample Ads and Phrases 3.2.6
Company Event System 3.2.7
Internet SPAM Standards 3.2.8
Changes to the Company Business 3.3
In General 3.3.1
Addition of Co-Applicants 3.3.2
Change of Sponsor and Placement 3.3.3
Cancellation, Termination and Re- Application 3.3.4
Unauthorized Claims by Member 3.4
Product Claims 3.4.1
Income Claims 3.4.2
Indemnification 3.4.3
Commercial Outlets 3.5
Trade Shows and Exposition 3.5.1
Conflict of Interest 3.6
Unauthorized Recruiting and Sales 3.6.1
Non-Solicitation of Company Members and Customers 3.6.2
Genealogies and Downline Activity Reports 3.6.3
Corporations, Partnerships and Trusts 3.7
Cross-Line Sponsoring 3.8
Errors or Questions 3.9
Excess Inventory Purchases Prohibited 3.10
Governmental Approval or Endorsement 3.11
Holding Applications or Orders 3.12
Identification 3.13
Income Taxes 3.14
Independent Contractor Status 3.1 5
Insurance 3.16
Business Pursuit Coverage 3.16.1
Product Liability Coverage 3.16.2
International Marketing 3.1 7
Laws and Ordinances 3.18
Compliance with Federal, State and Local Laws 3.1 8.1
Home-based Business Statutes 3.18.2
Minors 3.19
One Company Business 3.20
Married Couple Exception 3.20.1
If Members Marry 3.20.2
Actions of Household Members or Affiliated Individuals 3.20.3
Re-Packaging and Re-labeling Prohibited 3.21
Requests for Records 3.22
Sale, Transfer or Assignment of Company Business 3.23
Separation or Termination of a Company Business 3.24
Sponsoring 3.25
Succession 3.26
Transfer Upon Death of a Member 3.26.1
Transfer Upon Incapacitation of a Member 3.26.2

SECTION 4-RESPONSIBILITIES OF MEMBERS

Change of Address or Telephone Numbers 4.1
Ongoing Training 4.2
Ongoing Sales Responsibilities 4.3
Non-Disparagement 4.4
Reporting Policy Violations 4.5
Reviewing Policies and Procedures with Applicants 4.6
Unauthorized Communications 4.7
Release for Use of Photo, Audio, Video Image and/or Testimonial Endorsement 4.8

SECTION 5-SALES REQUIREMENTS

Product Sales 5.1
No Price or Territory Restrictions 5.2

SECTION 6- BONUSES AND COMMISSIONS

Bonus and Commission Qualifications 6.1
Adjustment to Bonuses and Commissions 6.2
Unclaimed Commissions and Credits 6.2.1
Car Bonus 6.3
Lifestyle Bonus 6.3.1

SECTION 7-ORDERING
Sales Goals 7.1
Preferred Customers (PCs) 7.1.1
Monthly AutoShip Program (AS) 7.1.2
Purchasing Company Products 7.2
General Order Policies 7.3
Shipping and Back-Order Policy 7.4
Confirmation of Order 7.5

SECTION 8- PAYMENTS AND SHIPPING

Deposits 8.1
Insufficient Funds 8.2
Returned Checks 8.3
Restrictions on Third Party Use of Credit Cards and Checking Accounts 8.4
Purchasing in the Downline 8.4.1
Chargebacks 8.4.2
Sales Tax 8.5

SECTION 9- PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASES

Product Guarantee 9.1
Returns by Retail Customers to Members 9.1.1
Returns by Members (Products Returned by Personal Retail Customers to the Member) 9.1.2
Returns by Customers Directly to Company 9.1.3
Returns by Members (Personal Consumption Products Only) 9.1.4
Returns by Members Upon Resignation 9.1.5
Procedures for Returns 9.2
Sales Aids 9.2.1
Business Volume and Returns 9.3

SECTION 10- INACTIVITY AND CANCELLATION

Effect of Cancellation 10.1
Inactive Status 10.2
Involuntary Cancellation 10.3
Voluntary Cancellation 10.4
Non-Renewal 10.4.1

SECTION 11- DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS

Disciplinary Sanctions 11.1
Review 11.1.1
Grievances and Complaints 11.2
Dispute Resolution Board 11.3
Appeals of Involuntary Termination 11.3.1
Arbitration 11 .4
Governing Law, Jurisdiction and Venue 11.5

SECTION 12- GLOSSARY OF TERMS

Definitions 12.1