These Policies & Procedures are specifically incorporated by reference into the Distributor Agreement and have the same effect and force.  The Application & Agreement, including the Terms and Conditions set forth on the front and the back thereof, along with these Policies & Procedures, from the Agreement between Affinitylifestyles.com, Inc. (hereinafter "the Company") and the Distributor (an independent contractor, hereinafter known as "Distributor") shall be effective only upon acceptance by the Company and its Distributor Services Office.  These Policies & Procedures have been adopted in order to define the duties, responsibilities, and rights of Distributors among themselves and with the Company.  The purpose is to develop relationships which are conducive to good business practices while maintaining the right of each Distributor to structure of the Compensation Plan causes your actions to directly and indirectly affect the business of other Distributors as well as your own.

AGREEMENT: 

Distributor AGREES:

1) Distributor is of legal age in the state in which he/she resides.

2) Distributor will represent the Company with his/her best efforts to create and maintain an independent marketing company to sell the Company’s products.  Distributor will make every reasonable attempt to sell to retail customers understanding that retail sales is a requirement to receive bonus compensation. The Company program is based on sales at retail to the end consumer and not the stockpiling of products.  At the time of each order, the Distributor must certify that they have sold at least 70% of their previous order.  Each Distributor shall maintain and, upon request by the Company, furnish a statement listing his/her individual retail customers.

3) Any Distributor who sponsors other Distributors, must fulfill the obligation of performing a bona fide supervisory, distributing and selling function as the sale or delivery of product to the ultimate consumer and in the training of those sponsored. Distributors must have ongoing contact, communication, and management supervision with his or her sales organization.  Examples of such supervision may include, but are not limited to: newsletters, written correspondence, personal meetings, telephone contact, voice mail, electronic mail, training sessions, accompanying individuals to Company training, sharing genealogy information with those sponsored.  Distributors should be able to provide evidence to the Company semi-annually of ongoing fulfillment of sponsor responsibilities.

4) Applicant is, upon acceptance, an Independent Contractor, called Distributor, conducting business for her/his own account and not an agent, employee, or franchisee for the Company. As such, The Distributor must provide his/her Social Security or Federal Tax ID Number for tax reporting purposes. Canadian resident Distributors must provide a unique Canadian ID number for our accounting purposes.  The Distributor further understands that she/he will not be treated as an employee in regard to any laws covering employees, including but not limited to the Federal Insurance Contributions Act (FICA), the Social Security Act, the Federal Unemployment Tax Act, Income Tax withholding at the source, or for any federal or state taxes and local license fees that may become due as a result of activities under this agreement, and as an Independent Contractor shall be responsible for obtaining any licenses required by law. An annual income report will be delivered to Canadian Distributors for their own documentation purposes.

5)  Distributors are independent marketing Distributors of the Company and are not to be considered purchasers of a franchise. The agreement between the Company and its Distributors does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the Distributors. Each Distributor shall hold harmless the Company from any claims, damages or liabilities arising out of Distributor's business practices. Distributors have no authority to bind the Company to any obligation. Each Distributor is encouraged to set up his/her own hours and to determine his/her own methods of sale, so long as he/she complies with the policies and procedures of the Company.

6)  In the conduct of its business, the Distributor shall safeguard and promote the reputation of the Company's products and the Company and shall refrain from all conduct which might be harmful to such reputation of the Company or to the marketing of such products or inconsistent with the public interest, and shall avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices.

7) Distributor shall be responsible for all federal and state income taxes, social security, unemployment and other taxes on his/her earnings. The Company will file a Form 1099 or equivalent on each Distributor at the close of the calendar year for the amount of commissions and bonuses earned under this agreement. An annual income report will be delivered to Canada Distributors for their own documentation purposes.

8)  Distributor agrees that the Company will not be liable whatsoever for city, county, state, provincial, district and federal taxes or other fees pertaining to efforts and earnings of the Distributor.

9)  Distributor is free to sell products and services of other companies. Distributor SHALL NOT promote or sell other products at Company functions or use the Company forms or printed materials or its name, prestige, or drawing power in conjunction with or in support of any other activities. Such action is cause for termination.

10) Distributor shall not sponsor another Company Distributor into another Direct Sales, Multi-Level Marketing and/or Network Marketing company except for her/his personally sponsored Distributors. In addition, no Distributor shall participate in any action that causes another Distributor to be sponsored/recruited through someone else into another company. Distributor agrees that an expense of time and money is made when a sponsoring occurs which forms an enforceable business relationship between two Distributors. The Company has the responsibility to help protect these relationships and cross-sponsoring constitutes grounds for termination.

11) Distributor shall have the right to exercise independent judgment as to the persons from whom to solicit orders for products and whom to sponsor into their network downline organization. The Company shall have the right at its discretion to prescribe procedural requirements that will not interfere with the Distributor's freedom of judgment or action, but which will ensure that orders or applications submitted to the Company will conform to the Company methods of conducting its business.

12) Distributor will forward all orders for products and Distributor Applications, together with all authorized money collections (never cash), to the address indicated on the Company order forms and Distributor Applications.

13) Distributor will not repackage any Company product in any way.

14) Distributor shall make every reasonable effort before beginning to sell the Company products and sponsoring others to become familiar with the products and their descriptions. Distributor agrees to use only the Company business and promotional material provided by the Company and will conduct all business operations in strict compliance with all applicable laws and other requirements of any federal, state, county, municipal, or other governmental agency.

15) Distributor is not guaranteed a specific income. Financial success as a Distributor can come only from sale of Company products to the end consumer, building her/his own sales organization and training that organization to sell, sponsor, and train.

16) Distributor understands that financial reward is based on ability, personal effort, and initiative. In discussing the Company Compensation Plan, Distributor will make no claims as to income potential either written or oral except those prepared by the Company for illustration purposes only.

17) Distributor shall not make any claims with regard to specific income potential, including, citing as an example, any actual income made by any existing Distributor.  No false or misleading income projections may be made to prospective Distributors. In their enthusiasm, Distributors are occasionally tempted to represent hypothetical income figures based upon the inherent power of network marketing as actual income projections. This is counter productive, since new Distributors may be quickly disappointed if their results are not as extensive or as rapid as a hypothetical model would suggest. The Company believes firmly that the income potential is great enough to be highly attractive in reality without resorting to artificial and unrealistic projections.

18) Distributor will not make any claims of any kind pertaining to benefits of the Company's products and services except those given in official Company promotional materials/media.

19) Distributor shall not represent or imply, directly or indirectly, that the Company program has been approved or endorsed by any governmental agency. Federal and State regulatory agencies do not ever approve or endorse any marketing company, product or programs.

20) Distributor will indemnify and hold the Company harmless from any and all claims, expenses, costs, causes of action, and damages resulting from or growing out of statements or actions by the Distributor which are in violation of this agreement.

21) The Distributor agreement may be canceled at any time and for any reason by a Distributor notifying the Company in writing of the election to cancel. Such cancellation shall constitute voluntary termination of the Distributor's right to represent the company and its products or to sponsor other Distributors.

22) If a Distributor elects not to renew his/her Distributor agreement, all rights to bonuses, marketing position and wholesale purchases cease. The voluntarily terminated Distributor's sales organization shall be transferred to his/her sponsor.

23) If a voluntarily terminated Distributor has purchased products for inventory purposes or sales aids while the Distributor agreement was in effect, all unencumbered products in re-sellable condition then in possession of the Distributor, which have been purchased within thirty days (30) days of cancellation, shall be repurchased. The repurchase shall be at a price of not less than the percentage of the original net cost to the participant returning such goods.  Net cost shall be value of the products less commissions, bonuses, or other payments made to the Distributor or another Distributor for this wholesale volume as it was calculated into the compensation plan.

Any bonuses or commissions already paid to the voluntarily terminated Distributor together with the value of any promotional prizes awarded to the Distributor, will be deducted from the refund amount which shall be paid within sixty (60) days.

Prior to returning products, order forms or sales aid/literature items, a Distributor must obtain a Return Authorization number from the Company by telephoning the Distributor Services Office.   Items must be shipped to the Company's Home Office, freight prepaid by the Distributor. All returns must be in re-sellable condition and the Return Authorization number must be clearly noted on the box and in a letter enclosed in the shipping package.

24) The voluntarily terminated Distributor will be eligible to reapply and may choose a new sponsor after six (6) months. A voluntarily terminated Distributor that reenters the program may not sponsor any of her/his original downline organization.

25) The Distributor understands that the Company generally does not permit changing of sponsors.

Multi-Level Marketing (MLM) is a business of creating relationships. Once a Distributor is sponsored, the Company believes in maximum protection of that relationship. The only potential exception will be in the case of a Distributor using unethical means to sponsor someone. Otherwise sponsor changing can only be affected by voluntary termination and waiting six (6) months to rejoin under a new sponsor.

26) When presenting the Company program to others, the Distributor shall present the program in it's entirety, without omission, distortion or misrepresentation.

27) The Company will pay the Distributor commissions and bonuses on moneys received and accepted by the Company for sale of products to the ultimate consumer (not sales aids) made by the Distributor and her/his sales organization under the terms of the Company Compensation Plan. Bonuses and increases are based upon production requirements and not upon recruiting other Distributors.

28) The Company will retain full authority to accept or reject any Application or any order for services or products submitted by the Distributor. Such refusal is solely within the discretion of the Company. No right of action against the Company will arise because of any such acceptance or refusal.

29) The Company reserves the right, in its sole discretion to amend, revise, institute, alter, or modify changes including but not limited to prices, literature, policies, this agreement, and the Compensation Plan. Any such revisions become effective by letters, or by publication in official Company literature, addressed and posted through the U. S. mail to the Distributor at her/his last known address. The Distributor agrees to be bound by these changes and the changes shall become part of this agreement ten days after mailing.

30) The Company shall not be responsible for acts beyond its control, including, but not limited to: fire, flood, earthquake, storms, power outages, labor difficulty, equipment failure, supplier problems, or other difficulties that might prevent performance according to this agreement.

31) The Company assumes no liability for personal injury arising from the use or mishandling of any of the Company products.

32)The Company does not require the Distributor to sponsor or recruit anyone.

33) The Company’s program is built upon retail sales to the ultimate consumer.

The Company also recognizes that Distributors may wish to purchase product in reasonable amounts for their own personal or family use. For this reason, a retail sale for bonus purposes shall include sales to non-participants as well as sales to Distributors for personal or family use which are not made for purposes of qualification or advancement. It is Company policy, however, to strictly prohibit the purchase of product or large quantities of inventory in unreasonable amounts solely for the purpose of qualifying for bonuses or advancement in the marketing program. Distributors may not inventory load nor encourage others in the program to load up on inventory. Distributors must fulfill published personal and downline retail sales requirements, including requesting retail sales to non-participant customers as well as supervisory responsibilities, to qualify for bonuses, overrides or other compensation.

34) Distributors should not make promises about providing prospects or actually placing new Distributors under a prospect as an inducement to sponsorship. Ultimately each Distributor is responsible for building his/her own organization. To promise or imply that one Distributor will build an organization for another as an inducement to sponsorship through advertising support or any means other than training and supervisory assistance is not permitted.

A)  The Company reserves the right to terminate this agreement immediately upon receipt of information sufficient to the Company that the Distributor has violated any term or condition of this agreement or has otherwise acted illegally or unethically. Distributor loses all right to bonuses and compensation from the date of termination and thereafter.

35) Distributors shall not make any claim regarding the training or the Compensation Plan which has not been expressed in official Company literature. Company is responsible only for material printed in company approved literature.

Distributors are expressly forbidden to imply that additional products or services will be added to the Company's products/services or that enhancements to the Compensation Plan are forthcoming or that specific geographical areas are about to be added to our area of operation.

36) The term of this agreement, with respect to each Distributor, is one year from the date of acceptance by Company of that Distributor's Application & Agreement.

RENEWAL OF AGREEMENT:

Each Distributor should apply to renew this agreement by responding to the notification sent by the Company no later than 10 days after the actual anniversary of the agreement. Annual renewal fees, if any, are nominal and payable with each renewal. This fee covers the necessary ongoing sales, marketing and product materials updates, and record-keeping provided by the Company for Distributor services.

DISTRIBUTOR RELATIONSHIPS:

Each person wanting to become a Distributor must be sponsored into the program by a Distributor in good standing. Married or cohabiting couples and their dependent children must share a single Distributor position and no one may be sponsored by more than one person. Individuals may not have an interest in more than one Distributor position and they must operate under only one ID (Social Security) number.

Should a husband/wife Distributor divorce, they must notify the company in writing, signed and notarized by both parties, indicating how the Distributor position is to be managed thereafter.

Otherwise, the Company shall consider the person who was originally listed as the applicant to be the surviving Distributor.

CORPORATIONS, PROPRIETORSHIPS, PARTNERSHIPS & TRUSTS:

Corporations, Proprietorships, Partnerships and Trusts ("Business Entities") may become Distributors. However, one individual must be designated as the responsible party for the Company's actions and must sign the Distributor application. Commission and Bonus checks will be made payable to the Business Entity.

When a Business Entity applies to be a Distributor, the Distributor agreement may be submitted in the name of the Business Entity, but must include the name and signature of at least one corporate officer, general partner, or trustee authorized to execute contracts for the Business Entity. In addition, a Corporation/Proprietorship/Partnership/Trust form must be submitted providing the names and social security numbers of all partners or trustees and beneficiaries. These persons may not be individual Distributors, nor shareholders, principals, partners, trustees or beneficiaries of another Business Entity which is a Distributor within the Company. This does not apply to active Distributors who wish to change their status from individual Distributor or Partnership to a Corporate Distributorship under their existing sponsor. The request must be received by the Company by the 15th of the month and approved in order to be effective on the first of the following month.

A person or entity may not apply as a Distributor using a fictitious or assumed name, except as a business entity. Should it be found or learned that such an Application was accepted by the Company, the Distributor Application will be considered null and void.

CORPORATE AND PARTNERSHIP GUARANTEE FOR OWNERS:

Although the Company has offered Distributors the opportunity to conduct their Distributor business as corporate, proprietorship, partnership, or trust entities, it is agreed that since the Business Entity is under the control of its owners or principals, the actions of individual owners as they may affect the Company and the Distributor position are also critical to the Company's business. Therefore, it is agreed that actions of shareholders, officers, directors, partners, principals, trustee beneficiaries, agents or employees, which are in contravention to the Company's policies shall be attributable to the corporate or partnership entity,

RETAIL SALES:

The Company Retail Order Forms are required for all sales to consumers. These sales carry the Company Retail Sales Warranty and Consumer Protection Statements required by law.

A Distributor will, as a fiduciary, be responsible for immediate and proper forwarding of all money the Distributor receives on behalf of the Company. A Distributor will retain all sales receipts for review by the Company.

SPONSORING:

The Company neither requires a Distributor to sponsor nor recruit anyone to participate as a Distributor in the Company program. Commissions or bonuses earned are not based on sponsoring or recruiting.

A Distributor may have only one sponsor. Company prohibits transferring from one sponsor to another. In addition, once a person has been placed the placement may not be changed under any circumstances.

It is strictly prohibited for a Distributor to recruit a Distributor from another Company downline into their own downline. Any such attempts shall result in termination as a Distributor.

A Distributor may not have simultaneous beneficial interest in more than one Distributor agreement. In the event a prospective Distributor is sponsored by more than one person, an evaluation will be necessary to determine who has the sponsoring right. The date on the application form will be the first criteria for evaluation. The Company's corporate office will use its best judgment to determine who the sponsor will be.

Distributors must refrain from recruiting a prospect for their own purposes when that prospect is in the company of another Distributor or who has been brought (or sent) to a meeting or event with the intent of recruiting that prospect as a Distributor, regardless of whether or not there has been previous knowledge or acquaintance of the prospect by another Distributor (people rarely attend meetings or events without an invitation). Distributors have a right to absolute confidence that when they bring or send prospects to an activity, the prospects will be safe from being "cross­-recruited" by other Distributors during the duration of that recruiting activity. A Distributor has a right to expect that other Distributors, whether in the same downline organization or not, will fully support their recruiting efforts. It is, however, the responsibility of the recruiting Distributor to educate their prospects about how Network Marketing and Sponsoring works so that the prospect can act responsibly and appropriately in a recruiting situation. Violation of this paragraph may lead to the termination of the offending Distributor.

CROSS-SPONSORING:

A Distributor may sponsor into any other network marketing organization only those Distributors he/she has personally sponsored into the Company and shall not offer the opportunities or products and services of any other network marketing company to of the Company's Distributors, other than those she/he personally sponsored.

MEETINGS:

All business presentations and training sessions shall be conducted in strict conformity with corporately produced scripts, slides and printed material. These materials may not be altered or deviated from in any way. They have been developed and refined to insure that prospects have accurate information upon which to base their decision and to assist new Distributors in learning proven techniques for achieving success within prescribed guidelines. For this reason, any alteration of scripts, slides, printed materials or videos, or any deviation in the prescribed presentation thereof which compromises the integrity and/or intent of the Company program may result in disciplinary action including termination of the offending Distributor(s).

TRANSFERRING OR SELLING BUSINESS:

A Distributor may assign or transfer his/her business to another person, by sale or bequest upon written consent of the Company. Approval will not be unreasonably withheld so long as there is not adverse impact on the marketing program or other Distributors. The person to which the business is being assigned or transferred must accept legal responsibility for all terms and conditions of the Distributor Application and all attachments, in writing. Upon the death or incapacity of the Distributor, his or her rights to bonuses and marketing position, together with Distributor responsibilities, shall pass to his or her successors in interest upon written application and approval by the Company. The successor Distributor must fulfill all responsibilities of the Distributor.

ID NUMBER:

A Distributor's Social Security or Federal ID number shall become their Company personal identification number. The Company will use its best efforts to keep all identification numbers confidential.

ORDERS:

All orders must be paid for by credit card or check by phone. Credit Card orders will ship immediately upon confirmation of the credit card transaction.  Personal checks must clear the home office bank before any shipment is made. A period of ten (10) business days is allowed before any corresponding transaction will be processed to ensure that all funds are collected. All forms of payment are to be made payable to the Company.

All orders are accepted through our Automated IVR Ordering System.  Distributor Enrollment Worksheets and Product Order Worksheets are designed to assist you in obtaining all necessary information to complete your order.   Any missing information will result in your order being delayed, or not being processed.

SALES AIDS & LITERATURE:

Although not mandatory, a Distributor should carry a sufficient inventory of supplies, such as brochures, order forms, and sales aids to meet the needs of their organization. These items are noncommissioned and do not carry a discount. Items may be ordered by using the official Company Sales Aid Order Form.

SHIPPING:

All sales aids and products must be sent to a street address. Neither PO Box numbers, general delivery, nor C.O.D. orders will be accepted. EXCEPTION: A few rural areas receive only PO Box and General Delivery and this must be indicated. - Shipments are usually made via United Parcel Ground Service (UPS). All shipping costs are absorbed by the ordering Distributor. For Canadian Orders, P.O. Box address are acceptable.

LOST SHIPMENTS:

If you do not receive your order within a reasonable number of working days from the date the order was placed, we recommend you promptly call the Home Office. When you call, please have the following information available:

Your Distributor ID Number
Your Order Number
Your Name
Your telephone number

BACK ORDERS:

If the Company is temporarily out of stock on an item you order, you will receive all other items on your order along with a "Partial Shipment Form". The form lists items you ordered that were not shipped. Your order will be filled based on the priority of actual date the order was received. Since Bonuses are paid for the pay period when the order is received, a Bonus will not be paid when the back ordered product is shipped if the back order contains a commissionable product.

DAMAGED SHIPMENTS:

The Company does not ship damaged product.  If the product you receive is damaged:

A) Accept delivery and WRITE ON DELIVERY RECEIPT THE NUMBER of damaged boxes.
B) Keep damaged products for future inspection by shipping agent.
C) Make an appointment with the shipping company to have the damaged products inspected.
D) File a claim with the shipping company, not the Company, as the responsibility for delivery becomes the shipping company's when they leave the Company's warehouse. For damage discovered after deliverer has left, follow the same procedures as described above, except step A.

RETAIL CUSTOMER WARRANTY:

The Company guarantees their products as to the quality of manufacture. In addition, the Company offers the customer a full money back warranty through their Distributors. Each Distributor is expected to honor the customer warranty in a prompt and courteous manner.

Within a 30 day period, the retail customer may return their products for any reason to the Distributor from whom the product was purchased along with their sales receipt. The Distributor should immediately refund the full purchase price directly to their retail customer.

Within 30 days of reimbursement to the retail customer, the Distributor must submit to the Company a written explanation of the return, the unused portion of the product (or empty product packaging) along with a copy of the Retail Receipt. The Distributor will receive a replacement product or refund, at the sole discretion of the Company.

Notwithstanding the Company's longer retail customer guarantee policy, all retail sales must comply with the FTC Three-Day Cooling Off Rule which requires statutory language and notice of cancellation on the retail sales receipt. The three-day right of cancellation must be orally explained to the customer and the customer must receive two copies of a notice of cancellation form.

EXPENSES:

Any and all expenses arising from their business operations are the sole responsibility of the Distributor, including, but not limited to legal costs, telephone expenses, advertising, etc. A Distributor is an Independent Contractor and may not represent by implication or otherwise that she/he is an officer, employee, agent or owner of the Company, and as such cannot bind or contract the Company in any manner.

TERRITORIES / FRANCHISES:

Distributor shall not represent that any exclusive territories or franchises are available under the Company marketing program or that The Distributor has the authority to grant exclusive rights for the Company products to anyone. There are no exclusive territories.

The Distributor Agreement (including the guarantees, compensation plan rules and regulations and policies & procedures) is not binding for any products sold or Distributors sponsored outside the United States, United States territories and Canada.

COPYRIGHT:

All Company materials are protected by U.S. Copyright Statutes. All rights are reserved, including the right to alter, revise, and reprint these materials in whole or in part. Reproduction in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system is not permitted now or in the future without the prior written consent of the owner of this copyright.

Because of this copyright and the technical information required to market the Company opportunity, no one shall have the right to reproduce for personal use or for sale, any marketing materials, literature, logos, recorded Company events, speeches, flyers, videos, brochures or other aids relevant to the Company without prior written consent of the Company. Producing or using unauthorized materials will be grounds for immediate termination (NO EXCEPTIONS).

TRADEMARKS, TRADENAMES AND ADVERTISING:

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 Distributor for Distributor's use only in an expressly authorized manner. Distributor agrees not to advertise the Company product in any way other than the advertising or promotional materials made available to Distributor by the Company. Distributor agrees not to use any written, printed, recorded or any other material in advertising, promoting or describing the product 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 Distributor, as an independent contractor, is fully responsible for all of his/her verbal and written statements made regarding the product and marketing program which are not expressly contained in writing in the current Distributor agreement, and advertising or promotional materials supplied directly by the Company. Distributor 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 Distributor'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, on videotape, or produced by sound recording, are copyrighted and may not be reproduced in whole or in part by Distributors or any other person except as authorized by the Company. Permission to reproduce any materials will be considered only in extreme circumstances. Therefore, a Distributor should not anticipate that approval will be granted.

A Company Distributor 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 Distributor may not sell or distribute literature, films, videotapes or sound recordings which are deceptively similar in nature to those produced, published and provided by the Company for its Distributors. Nor may a Distributor purchase, sell or distribute non-company materials that 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, Internet, 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.

No claims as to therapeutic or curative properties about the products may be made except those officially approved in writing by the Company or as contained in the official Company literature.

In particular, no Distributor may make any claim that the Company products are useful in the treatment or cure of any disease, Such statements can be perceived as medical claims. Not only is this totally against Company policy, but it is also against the laws governed by the United States Food and Drug Administration.

The Company reserves the right to approve or disapprove Distributor's change of business names, formation of partnerships, corporations, and trusts for tax, estate planning, and limited liability purposes. If the Company approves such a change by Distributor, the organization' s name and the names of the principals of the organization must appear on the Distributor application agreement along with a social security number or federal identification number.

No Distributor may use the Company's name or any derivation thereof within a business name or in any electronic media network such as E-mail or on the Internet. Failure to comply with this paragraph may lead to termination of the Distributor.

REPRESENTATION OF STATUS:

In all cases, any reference the Distributor makes to him/herself must clearly set forth the Distributor's independent status. For example, if the Distributor has a business telephone, the telephone may not be listed under the Company's name or in any other manner, which does not disclose the independent contractor status of the Distributor.

BUSINESS CARDS AND STATIONERY:

Any printed materials, including business cards and stationery, must be approved by the Company in advance. Criteria for approving these materials will include a judgment regarding the quality of the materials as well as properly setting forth the independent status of the Distributor,

TELEPHONE SOLICITATION:

The use of the Company's name or copyrighted materials may not be made with automatic calling devices or "boiler room" operations either to solicit Distributors or retail customers. The use of these methods in ways that are legal and are the equivalent of the "blind ads" alluded to above cannot be regulated by the Company.

NO UCE (UNSOLICITED COMMERCIAL EMAIL) OR SPAM:

It is the strict policy of the Company, that NO Distributor shall use Unsolicited Commercial Email (UCE), also known as SPAM to promote or build the Distributor’s business. If it is determined that a Distributor is using UCE, he or she may be terminated immediately.

MEDIA CONTACTS:

To maintain accuracy and the correct Company image, all requests for interviews intended for the media in any form and in any way concerning the Company shall be forwarded to the Company for determination as to whether or not such interview should be granted. Any such determination by the Company shall be final and any action by the Distributor contrary to such decision shall result in the termination of this agreement, without prior written approval by the company, Distributors may not solicit coverage or publicity from the media regarding their Company business. Nor may they appear on radio or television to promote their activities. Any violations of this paragraph may lead to termination,

RETAIL ESTABLISHMENTS:

The Company Distributors may not sell or display in any retail outlet or export from the United States without written Company approval. This does not prohibit any retail owner from being a Distributor and is meant to protect the Distributor and the Customer.

Distributor can promote products at fairs and trade shows with the condition that the products are not shown or displayed with any other products that are sold via Direct Sales, Party Plan, Network Marketing or Multi-Level Marketing.

CONFIDENTIALITY AND NONDISCLOSURE:

On a periodic basis, the Company will supply data processing information and reports to the Distributor which will provide information to the Distributor concerning the Distributor's downline sales organization, product purchases and product mix. Distributor agrees that such information is proprietary and confidential to the Company and is transmitted to the Distributor in confidence. The Distributor agrees that he or she will not disclose such information to any third party directly or indirectly, nor use the information to compete with the Company directly or indirectly. The Distributor and the Company agree that, but for this agreement of confidentiality and nondisclosure, the Company would not provide the above confidential information to the Distributor.

Any violation of these confidentiality requirements may lead to the loss of buying privileges, possible suspension and termination from participation in the Compensation Plan, termination of Distributor status, and the imposition of any and all other remedies to which the Company may be entitled.

BONUS PAYMENTS:

A Distributor is paid commission and/or bonus by the Company for sale of products only after the Company has received moneys for the total amount due the Company. Pay periods are based on sales volume produced and paid for in full. To remain a Distributor and to continue receiving benefits, the Distributor must remain in good standing with the Company.

A computer fee is assessed to cover costs of the downline printout and will be deducted from the commission check.

The Company may offset against any bonuses due the Distributor for any debt or debts due from the Distributor to the Company arising from cancellations or refunds in his downline, organization or otherwise. The Company may deduct from monthly earnings (commissions or bonuses) any moneys which may be owed by the Distributor to the Company, specifically including, without limitation, underpayment, postage due, shipping charges, returned check (NSF) charges of $25.00, and debits accrued from refunds or returned products on which upline or any other bonuses have been paid.

The Company shall be entitled to change product prices at any time and without notice, and to make changes in the statement of policy and procedures.

BONUS COMPUTATION PERIOD:

The Fast-Start Bonus on pay period is on a 48 weeks per year basis. All Distributor purchases, which have been paid in full with collected funds, must be completed on the Automated System no later 11:59 p.m. on the last day of the bonus period to be included in that weeks commission computations.

Commissions will be paid to the Distributor based on accepted orders and on cleared funds on the following schedule:

Each Calendar month has 4 weekly bonus periods, resulting in a total of 48 bonus periods in a calendar year.   Bonus periods run for the same DATES within each month and are not related to the days of the week these DATES may fall on.  BONUS WEEK DATES are as follows:

1 BONUS PERIOD EACH MONTH: 1^st - 7th
1 BONUS PERIOD EACH MONTH: 8^th - 14th
1 BONUS PERIOD EACH MONTH: 15^th - 21st
1 BONUS PERIOD EACH MONTH: 22^nd - last day of the Calendar Month

Matrix compensation will be paid once a month on the 15^th day of the month following the month that the commission was earned.

NOTE: The Company will not generate a commission/compensation check for less than $20.00.   If you have earned an amount less than $20.00, it will be carried forward to the following pay period until commissions or compensation totaling at least $20.00 have been accumulated.

COMMISSION / BONUS CHECK DISPUTES:

Any questions or disputes about bonus, commission calculations or checks pertaining to the Compensation Plan must be raised in writing and submitted to the Distributor Services Office within two calendar months after the payment date.  Date of receipt will be the date of postmark. All disputes must be submitted in writing.

ADVANCEMENT:

All advancement to a higher position (according to the Compensation Plan) is given at the time of qualification but will not be registered in the Company computer system until calculation of commission checks for that pay period. Any overpayment that may have occurred from purchases made between the end of the pay period and the time checks are calculated will be refunded in the checks calculated for the next pay period.

To be eligible for monthly override commissions and bonuses, the Distributor must comply with:

A) Supervisory responsibility requirements as outlined herein.
B) 70% rule on resale of wholesale product ordered, and
C) Retail sales rule requiring 2  sales to 2  non-participant retail customers per month.
D) The requirement  that his/her downline has retailed product which has been purchased at Wholesale.

The Company encourages each Distributor to keep accurate sales records. The program is based Upon retail sales to the ultimate consumers; therefore, all forms of stockpiling or pyramiding are actively discouraged, Products are offered to Distributors only for personal consumption and for resale to consumers.

SALES & USE TAXES:

Sales & Use taxes are levied by many state, county and local governments, based on suggested retail prices of all products and sales aids (including Business Kits) and subject to a sales tax.  These taxes are collected by the Company where permitted and paid to the appropriate agencies.

LAWS:

The Company recognizing that some laws and/or rules may change from time to time and/or differ from state to state, honors the prevailing law or rule in any state.  The changing of a policy and/or procedure does not automatically alter any other policy or procedure that remains in force. The Company does not discriminate in its acceptance of Distributors because of race, creed, sex, color, or national origin,

VIOLATIONS OF AGREEMENT:

Violations or infractions of any part of the Distributor Agreement, these Policies & Procedures or the Compensation Plan, should be reported immediately to the Company indicating all the pertinent facts (date, time, place, names of all persons involved, etc.) A notification must be signed. Anonymous complaints will not be either investigated or retained in Company files. After receiving a signed complaint, the Company will assign a person or persons to investigate the matter and take appropriate action, including termination of the Distributor, if necessary.

The Company will not permit activity that is unethical, Even though the line, between aggressive marketing efforts and unethical behavior can be vague, the Company will intercede when unethical behavior is evident and reserves the right in its sole discretion to determine whether an unethical practice has been committed and the appropriate action to be taken.

The Company reserves the right to terminate any Distributor at any time for cause, when it is determined that the Distributor has violated the provisions of the Distributor agreement including the provisions of these, policies and procedures as they may be amended or the provisions of applicable laws and standards of fair dealing. Such involuntary termination shall be made by the Company at its discretion. Upon an involuntary termination, the Company shall notify the Distributor by mail at the latest address listed with the Company for the Distributor. In the event of a termination, the terminated Distributor agrees to immediately cease representing him/herself as a Distributor of the Company.

TERMINATION:

A) When a decision is made to terminate a Distributorship, the Company will inform the Distributor in writing that the Distributorship is terminated immediately, effective as of the date of the written notification. The termination notice will be sent by certified mail to the Distributor's address on file with the Company.

B) The Distributor will have 15 days from the date of mailing of the certified letter in which to appeal the termination in writing. The Distributor's appeal 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.

C) If a Distributor files a timely appeal of termination, the Company will review and reconsider the termination, consider any other appropriate action, and notify the Distributor 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.

NOTICES:

Written notices between the Company and its Distributors are effective as follows: All notices to the Company are effective when received by the Company at its offices. All notices from the Company are considered effective when deposited in the U.S. mail to the Distributor's last known address. Notices to Distributors as a group may also be contained in other Company mailings, such as newsletters, etc.

The Company trusts that with these guidelines, Distributors and the Company will act in the best interest of all and conduct their businesses in a manner that reflects the highest standards of honesty, integrity and responsibility toward customers, other Distributors, the industry and the public, observing the spirit as well as the letter of the law and this agreement.

The parties agree to be bound by the terms of the Distributor agreement. Signatures on the face of the Distributor Agreement signify acceptance of this agreement by Distributor and shall be effective upon acceptance by the Company at its principal office.

WAIVER:

The Company never gives up its right to insist on compliance with these rules or with the applicable laws governing the conduct of a business. This is true in all cases, both specifically expressed and implied, unless an officer of the Company who is authorized to bind the Company in contracts or agreements specifies in writing that the Company waives any of these provisions. In addition, any time the Company gives permission for a breach of the rules, that permission does not extend to future breaches. This provision deals with the concept of "waiver," and the parties agree that the Company does not waive any of its rights under any circumstances short of the written confirmation alluded to above.

GOVERNING LAW:

These rules are reasonably related to the laws of the state of Nevada and shall be governed in all respects thereby. The parties agree that jurisdiction and venue shall lie with the place of acceptance of the Distributor application, the state of Utah.

PARTIAL VALIDITY:

Should any portion of these Rules and Regulations, or of the Distributor's application and agreement, or of any other instruments referred to herein or issued by the Company be declared invalid by a court of competent jurisdiction, the balance of such rules, applications, or instruments shall remain in full force and effect.

DISTRIBUTOR AGREES TO ALL OF THE ABOVE.