Policies and Procedures

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Policies and Procedures

  1. 1. Policies and Procedures 081709 US ENG P&P.indd 1 10/19/09 3:44 PM
  2. 2. 4LIFE RESEARCH ™ STATEMENT OF POLICIES & PROCEDURES EFFECTIVE July 1, 2009 TABLE OF CONTENTS 3. OPERATING A 4LIFE 3.20. Errors or Questions 3.21. Excess Inventory Purchases BUSINESS (page 7) 3.1. Adherence to the 4Life Marketing and Prohibited 1. INTRODUCTION (page 3) Compensation Plan 3.22. Right of Publicity 1.1. Policies Incorporated into Distributor 3.2. Advertising 3.23. Governmental Approval or Application and Agreement 3.3. Participation in 4Life’s Corporate Endorsement 1.2. Purpose of Policies Marketing Efforts 3.24. Income Taxes 1.3. Changes to the Distributor 3.4. Telemarketing Techniques 3.25. Independent Distributor Status Agreement, Policies and 3.5. Trademarks and Copyrights 3.26. International Marketing Procedures, or Marketing and 3.6. Media and Media Inquiries 3.27. Adherence to Laws and Ordinances Compensation Plan 3.7. Business Entities 3.28. Compliance with Laws and Ethical 1.4. Delays 3.8. Changes to the 4Life Business Standards 1.5. Policies and Provisions Severable 3.9. Addition of Co-Applicants 3.29. One 4Life Business Per Distributor 1.6. Titles Not Substantive 3.10. Change of Sponsor 3.30. Actions of Household Members or 1.7. Waiver 3.11. Cancellation and Re-application Affiliated Individuals 3.12. Indemnification for Unauthorized 3.31. Re-packaging and Re-labeling 2. BECOMING A DISTRIBUTOR Prohibited (page 5) Claims and Actions 3.13. Product Claims 3.32. Requests for Additional Records 2.1. Requirements to Become a Distributor 3.14. Income Claims 3.33. Roll-up of Marketing Organization 2.2. Inventory and Distributor Kit 3.15. Commercial Outlets 3.34. Sale, Transfer or Assignment of 4Life 2.3. New Distributor Registration by 3.16. Trade Shows, Expositions and Other Business Telephone, Facsimile or Internet Sales Forums 3.35. Separation of a 4Life Business 2.4. Distributor Benefits 3.17. Conflicts of Interest / 3.36. Sponsoring 2.5. Material and Subscription Fee Nonsolicitation 3.37. Transfer Upon Death of a Distributor 3.18. Downline Activity Reports 3.38. Transfer Upon Incapacitation of a 3.19. Cross-Sponsoring Distributor 1 081709 US ENG P&P.indd 2 10/19/09 3:44 PM
  3. 3. 4. RESPONSIBILITIES OF 7. PRODUCT GUARANTEES, 9.5. Payment and Shipping Deposits DISTRIBUTORS (page 20) RETURNS AND INVENTORY 9.6. Insufficient Funds 4.1. Change of Address or Telephone REPURCHASE (page 24) 9.7. Returned Checks 4.2. Continuing Development Obligations 7.1. Product Guarantee 9.8. Restrictions on Third Party Use of and Ongoing Training 7.2. Returns by Distributors (Products Credit Cards 4.3. Increased Training Responsibilities Returned by and Checking Account Access 4.4. Ongoing Sales Responsibilities Personal Retail Customers) 9.9. Sales Taxes 4.5. Non-disparagement 7.3. Return of Inventory and Sales Aids by 4.6. Providing Documentation to Distributors 10. INACTIVITY AND Applicants 7.4. Procedures for All Returns CANCELLATION - 4.7. Reporting Policy Violations TERMINATION (page 30) 8. DISPUTE RESOLUTION 10.1. Effect of Cancellation and 5. SALES REQUIREMENTS AND DISCIPLINARY Termination (page 22) PROCEEDINGS (page 26) 10.2. Cancellation Due to Inactivity 5.1. Product Sales 8.1. Disciplinary Sanctions 10.3. Involuntary Cancellation 5.2. No Price or Territory Restrictions 8.2. Grievances and Complaints (Termination) 5.3. Sales Receipts 8.3. Appeals of Sanctions 10.4. Voluntary Cancellation 8.4. Arbitration 10.5. Non-continuation 6. BONUSES AND 8.5. Governing Law, Jurisdiction and COMMISSIONS (page 23) Venue DEFINITIONS (page 32) 6.1. Bonus and Commission Qualifications 6.2. Adjustment to Bonuses and 9. ORDERING (page 28) Commissions for Returned Products 9.1. Purchasing 4Life Products and Services 9.2. General Order Policies 6.3. Unclaimed Commissions and Credits 9.3. Shipping and Backorder Policy 9.4. Confirmation of Order 2 081709 US ENG P&P.indd 3 10/19/09 3:44 PM
  4. 4. 1. INTRODUCTION 1.1. POLICIES INCORPORATED sponsoring distributor to provide the most 1.3. CHANGES TO THE INTO DISTRIBUTOR current version of these Policies to the DISTRIBUTOR APPLICATION AND applicant prior to his or her execution of AGREEMENT, POLICIES AGREEMENT the Distributor Agreement. AND PROCEDURES, These Policies and Procedures (“Policies”), OR MARKETING AND in their present form and as amended at the 1.2. PURPOSE OF POLICIES COMPENSATION PLAN sole discretion of 4Life Research USA, LLC 4Life distributors are required to comply Because federal, state, and local laws, (hereafter “4Life” or the “Company”), are with all of the Terms and Conditions set as well as the business environment, incorporated into, and form an integral forth in the Agreement which 4Life may periodically change, 4Life reserves the part of, the 4Life Distributor Application amend at its sole discretion from time to right to amend the Agreement and the and Agreement (hereafter “Distributor time, as well as all federal and state laws prices in its 4Life Product Price List in its Agreement”). Throughout these Policies, governing their 4Life business and their sole and absolute discretion. By signing when the term “Agreement” is used, it conduct. Because you may be unfamiliar the Distributor Agreement, a distributor collectively refers to the 4Life Distributor with many of these standards of practice, agrees to abide by all amendments or Agreement, these Policies, and the 4Life it is very important that you read and modifications that 4Life elects to make. Marketing and Compensation Plan. These abide by the Agreement. Please review Notification of amendments shall appear documents are incorporated by reference the information in these Policies carefully. in Official 4Life Materials. Amendments into the Distributor Agreement (all in They explain and govern the relationship shall be effective upon publication in their current form and as amended by between you, as an independent Official 4Life Materials, including but 4Life). It is the responsibility of each distributor, and the Company. not limited to, posting on 4Life.com, distributor to read, understand, adhere to, e-mail distribution, publication in 4Life’s and ensure that he or she is aware of and newsletter, product inserts, or any other operating under the most current version commercially reasonable method. The of these Policies. When sponsoring a new continuation of a distributor’s 4Life distributor, it is the responsibility of the business or a distributor’s acceptance of bonuses or commissions constitutes acceptance of any and all amendments. 3 081709 US ENG P&P.indd 4 10/19/09 3:44 PM
  5. 5. 1.4. DELAYS 1.6. TITLES NOT 4Life shall not be responsible for delays and SUBSTANTIVE failures in performance of its obligations The titles and headings in the Agreement when performance is made commercially are for reference purposes only, and do not impracticable due to circumstances beyond constitute, and shall not be construed as, its reasonable control. This includes, substantive terms of the Agreement. without limitation, strikes, labor difficulties, riot, war, fire, flood, death, curtailment of 1.7. WAIVER a party’s source of supply, or government The Company never gives up its right to decrees or orders. insist on compliance with the Agreement and with the applicable laws governing 1.5. POLICIES AND the conduct of a business. No failure PROVISIONS SEVERABLE of 4Life to exercise any right or power If any provision of the Agreement, in its under the Agreement or to insist upon current form or as may be amended, is strict compliance by a distributor with any it affect in any way the rights or obligations found to be invalid, or unenforceable for obligation or provision of the Agreement, of any other distributor. Nor shall any any reason, only the invalid portion(s) and no custom or practice of the parties at delay or omission by 4Life to exercise any of the provision shall be severed and variance with the terms of the Agreement, right arising from a breach affect or impair the remaining terms and provisions shall constitute a waiver of 4Life’s right 4Life’s rights as to that or any subsequent shall remain in full force and effect and to demand exact compliance with the breach. shall be construed as if such invalid, or Agreement. Waiver by 4Life can be The existence of any claim or cause of unenforceable provision never comprised a effectuated only in writing by an authorized action of a distributor against 4Life part of the Agreement. officer of the Company. 4Life’s waiver of shall not constitute a defense to 4Life’s any particular breach by a distributor shall enforcement of any term or provision of not affect or impair 4Life’s rights with the Agreement. respect to any subsequent breach, nor shall 4 081709 US ENG P&P.indd 5 10/19/09 3:44 PM
  6. 6. 2. BECOMING A DISTRIBUTOR 2.1. REQUIREMENTS TO 2.2. INVENTORY AND Agreement information over the telephone. BECOME A DISTRIBUTOR DISTRIBUTOR KIT An online, fax or original hard-copy of the To become a 4Life distributor, each No person is required to purchase Distributor Agreement must be received by applicant must: 4Life products or services to become a the Company within thirty (30) days from distributor. However, to familiarize new the date of the telephone enrollment. If no • Be of the age of majority in his or her application is received, the new enrollee’s distributors with 4Life products, services, state of residence; Distributor Agreement will be cancelled. sales techniques, sales aids, and other • Reside in the United States or other For purposes of the Agreement, signatures matters, the purchase of a Distributor Kit countries which have been officially on applications submitted through these is required. 4Life will repurchase Resalable opened by 4Life; electronic methods shall be deemed original kits from any distributor who terminates his • Have a valid Social Security Number or signatures. Faxed applications must include or her Distributor Agreement pursuant to Federal Tax Identification Number; both the front and back of the Distributor the terms in the “Return of Inventory and • Submit a properly completed and signed Agreement. Volume generated through Sales Aids by Distributors” section of these Distributor Agreement to 4Life (the distributors enrolled over the telephone Policies. Company reserves the right to reject any will not count toward qualification, or for applications for new distributorships and contest purposes, if subsequently canceled Purchase a Distributor Kit. 2.3. NEW DISTRIBUTOR REGISTRATION BY for failure to submit an online, fax, or • A person who is recognized as a minor in original hard-copy Distributor Agreement his or her state of residence may not be TELEPHONE, FACSIMILE OR INTERNET as stated above. a 4Life distributor. Distributors shall not enroll or recruit minors into the 4Life A Sponsor or the new distributor may call the 4Life Corporate Offices during regular 2.4. DISTRIBUTOR BENEFITS program. Once a Distributor Agreement has been business hours to receive a temporary Distributor Identification Number. (See accepted by 4Life, the benefits of the the front of the Distributor Agreement for Marketing and Compensation Plan and telephone numbers.) The caller must be the Distributor Agreement are available able to provide all necessary Distributor to the new distributor. These benefits 5 081709 US ENG P&P.indd 6 10/19/09 3:44 PM
  7. 7. include the right to: 2.5. MATERIAL AND • Purchase 4Life products and services at SUBSCRIPTION FEE the wholesale price; The term of the Distributor Agreement is • Retail 4Life products or resell services, one (1) year from the date of its acceptance which are described in the 4Life product by 4Life. Distributors must renew their catalog, and profit from these sales; Distributor Agreement each year by • Participate in the 4Life Marketing and paying a material and subscription fee as Compensation Plan (receive bonuses and determined by the Company on or before commissions, if eligible); the anniversary date of their Distributor • Sponsor other individuals as retail Agreement. If the material and subscription customers or distributors into the 4Life fee is not paid within thirty (30) days after business and thereby build a Marketing the expiration of the current term of the Organization and progress through the Distributor Agreement, the Distributor 4Life Marketing and Compensation Plan; Agreement may be canceled; however, in • Receive periodic 4Life literature and the absence of extenuating circumstances, other 4Life communications; all agreements are renewed under the • Participate in 4Life-sponsored support Automatic Material and Subscription Fee service training, Program (“AMSFP”). Under the AMSFP, motivational and recognition functions, the material and subscription fee will be upon payment of deducted from the distributor’s bonus appropriate charges, if applicable; and check for the anniversary month of the • Participate in promotional and incentive Distributor Agreement. If the bonus check contests and programs sponsored by does not have sufficient funds to cover the 4Life for its distributors. material and subscription fee, a debit shall remain against the distributor’s account until such funds are available. 6 081709 US ENG P&P.indd 7 10/19/09 3:44 PM
  8. 8. 3. OPERATING A 4LIFE BUSINESS 3.1. ADHERENCE TO THE individual or other entity to participate in Internet advertising), notwithstanding 4LIFE MARKETING AND the 4Life Marketing and Compensation distributors’ good intentions, they may COMPENSATION PLAN Plan other than those purchases or unintentionally violate any number of Distributors must adhere to the terms of payments identified as recommended or statutes or regulations affecting a 4Life the 4Life Marketing and Compensation required in Official 4Life Materials. business. These violations, although they Plan as set forth in Official 4Life Materials. may be relatively few in number, could Distributors shall not offer the 4Life 3.2. ADVERTISING jeopardize the 4Life opportunity for all opportunity through, or in combination All distributors shall safeguard and promote distributors. Accordingly, distributors must with, any other system, program, or the good reputation of 4Life and its submit all written sales aids, promotional method of marketing other than that products. The marketing and promotion of materials, advertisements, websites and specifically stated in Official 4Life 4Life, the 4Life opportunity, the Marketing other literature to the Company for Materials. Distributors shall not require and Compensation Plan, and 4Life Company’s approval prior to use. Unless or encourage other current or prospective products and services shall be consistent the distributor receives specific written customers or distributors to participate with the public interest, and must avoid approval to use the material, the request in 4Life in any manner that varies from all discourteous, deceptive, misleading, shall be deemed denied. the program as set forth in Official 4Life unethical or immoral conduct or practices. Materials. Distributors shall not require 4Life specifically prohibits the use of mass 3.3. PARTICIPATION IN 4LIFE’S or encourage other current or prospective unsolicited telephone autodialing, faxing, CORPORATE MARKETING customers or distributors to execute any e-mail (“spam”), and “boiler-room” EFFORTS agreement or contract other than official telemarketing operations. 4Life encourages distributor participation 4Life agreements and contracts in order to To promote both the products and the in the Company’s marketing efforts and become a 4Life distributor. opportunity 4Life offers, distributors distributors may submit their marketing Similarly, distributors shall not require or must use the sales aids and support ideas to the Company. Likewise, encourage other current or prospective materials produced by 4Life. If 4Life distributors are encouraged to participate customers or distributors to make any distributors develop their own sales aids in all Company-sponsored telephone calls purchase from, or payment to, any and promotional materials (which includes to interact and share ideas with Company 7 081709 US ENG P&P.indd 8 10/19/09 3:44 PM
  9. 9. leadership as well as other distributors. All trade names, trademarks and service other manner that would lead the caller submissions to the Company, including marks of 4Life. As such, these marks are to believe that he or she has reached those coming by way of verbal participation of great value to 4Life and are supplied Corporate Offices of 4Life. Distributors in Company-sponsored telephone calls, to distributors for their use only in an may not produce for sale, or any other become the property of 4Life. expressly authorized manner. Use of the purpose, any recorded Company events All Company-sponsored telephone calls are 4Life name or any form thereof, including and speeches without written permission copyrighted material owned by 4Life and their use as or within Internet domain from 4Life; nor may distributors reproduce are intended for distributors’ individual names, on any item not produced by the for sale or for personal use any recording use. Any rebroadcast, reproduction or Company is prohibited except as follows: of Company-produced audio or video tape distribution of this copyrighted material presentations. without the express written consent of Distributor’s Name In accordance with a distributor’s strict 4Life is prohibited. Independent 4Life Research™ Distributor adherence to the foregoing instruction on the use of 4Life’s trademarks, 4Life 3.4. TELEMARKETING If a distributor uses the name 4Life grants to each distributor so adhering, a TECHNIQUES and/or any of 4Life’s products in his nonexclusive license to use said marks. Said The use of any automated telephone or her advertising, the distributor must license may be revoked at any time at the solicitation equipment or “boiler-room” identify the mark as the property of 4Life discretion of 4Life. telemarketing operations in connection Research USA, LLC. All distributors may with the marketing or promotion of list themselves as an “Independent 4Life 3.6. MEDIA AND MEDIA 4Life, its products or the opportunity, is Research Distributor” in the white or INQUIRIES prohibited. yellow pages of the telephone directory Distributors must not attempt to respond under their own name. No distributor to media inquiries regarding 4Life, its 3.5. TRADEMARKS AND may place telephone directory display ads products or services, or their independent COPYRIGHTS using 4Life’s name or logo. Distributors 4Life business. All inquiries by any type The name of 4Life and other names as may not answer the telephone by saying of media must be immediately referred to may be adopted by 4Life are proprietary “4Life”, “4Life Research”, or in any 4Life’s Corporate Offices. 8 081709 US ENG P&P.indd 9 10/19/09 3:44 PM
  10. 10. 3. OPERATING A 4LIFE BUSINESS 3.7. BUSINESS ENTITIES 3.8. CHANGES TO THE 4LIFE Federal Tax Identification Numbers and A corporation, partnership or trust BUSINESS signatures. To prevent the circumvention (collectively referred to in this section as Distributors must immediately notify of the “Sale, Transfer or Assignment of a “Business Entity”) may apply to be a 4Life of all changes to the information 4Life Business” section (regarding transfers 4Life distributor by submitting a 4Life contained on his or her Distributor and assignments of 4Life business), the Business Entity Information Form along Agreement. Distributors may modify original applicant must remain as a party with its Certificate of Incorporation, their existing Distributor Agreement (i.e., to the original Distributor Agreement. If Articles of Organization, Partnership change Social Security Number to Federal the original distributor wants to terminate Agreement or trust documents (these Tax Identification Number, or change his or her relationship with the Company, documents are collectively referred to the form of ownership from an individual he or she must transfer or assign his or as the “Entity Documents”) to 4Life. A proprietorship to a Business Entity owned her business in accordance with the “Sale, 4Life business may change its status under by the distributor) by submitting a written Transfer or Assignment of 4Life Business” the same Sponsor from an individual to a request, a properly executed Distributor section of these Policies. If this process is partnership, corporation or trust, or from Agreement, and appropriate supporting not followed, the business shall be cancelled one type of entity to another. To do so, documentation. Each business will receive a upon the withdrawal of the original the distributor(s) must provide the Entity separate IRS Form 1099. distributor. All bonus and commission Documents to 4Life. The Distributor checks will be sent to the address of Application must be signed by all of the 3.9. ADDITION OF record of the original distributor. Please shareholders, partners or trustees. Members CO-APPLICANTS note that the modifications permitted of the entity are jointly and severally liable When adding a co-applicant (either an within the scope of this paragraph do not for any indebtedness or other obligation to individual or a business entity) to an include a change of sponsorship. Changes 4Life. existing 4Life business, the Company of sponsorship are addressed in “Change requires a written request as well as a of Sponsor” section of these Policies and properly completed Distributor Agreement Procedures. containing the applicant’s and co- There is a $25.00 fee for each change applicant’s Social Security Numbers or requested, which must be included with 9 081709 US ENG P&P.indd 10 10/19/09 3:44 PM
  11. 11. the written request and the completed or unethical sponsoring, a distributor receipt of the Sponsorship Transfer Distributor Agreement. 4Life may, at its may request that he or she be transferred Forms by 4Life for processing and discretion, require notarized documents to another organization with his or verifying change requests. A transferring before implementing any changes to a her entire Marketing Organization distributor’s downline shall remain in 4Life business. Please allow thirty (30) days intact. All requests for transfer alleging the original genealogy and shall not be after the receipt of the request by 4Life for fraudulent enrollment practices shall be moved with the transferring distributor; processing. evaluated on a case by case basis, and however, 4Life reserves the right to must be submitted to the Company make Downline genealogy changes at 3.10. CHANGE OF SPONSOR in writing within sixty (60) days from its discretion for reasonable business The transfer of a 4Life business from the enrollment date. The request must purposes. one Sponsor to another is rarely include a detailed description of why the permitted. Requests for change of distributor believes his or her enrollment 3.11. CANCELLATION AND sponsorship must be submitted in was fraudulently induced. RE-APPLICATION writing to 4Life’s Corporate Offices, and • The distributor seeking to transfer A distributor may legitimately change must include the reason for the transfer. submits a properly completed and fully organizations by voluntarily canceling his or Transfers will only be considered in the executed Sponsorship Transfer Form her 4Life business and remaining inactive following three (3) circumstances: which includes the written approval (i.e., no purchases of 4Life products for of all parties whose income will be resale, no sales of 4Life products, no • Within ten (10) days of the enrollment immediately affected by the transfer. sponsoring, no attendance at any 4Life date, the distributor seeking to Photocopied or facsimile signatures are functions, participation in any other form transfer submits a properly completed not acceptable. All distributor signatures of distributor activity, or operation of Sponsorship and Enroller Transfer must be notarized. The distributor who any other 4Life business) for six (6) full Form which includes the signature of requests the transfer must submit a fee calendar months. Following the six-month the distributor seeking to transfer, the of $50.00 for administrative charges and period of inactivity, the former distributor signature of the original Sponsor, and the data processing. Transferring distributors may reapply under a new Sponsor. signature of the original Enroller. must allow thirty (30) days after the • In cases involving fraudulent inducement 10 081709 US ENG P&P.indd 11 10/19/09 3:44 PM
  12. 12. 3. OPERATING A 4LIFE BUSINESS diagnosis, mitigation or prevention of any income claim or earnings representation. 3.12. INDEMNIFICATION FOR diseases. Such statements can be perceived Because 4Life distributors may not have UNAUTHORIZED CLAIMS as medical or drug claims. the data necessary to comply with the AND ACTIONS legal requirements for making income A distributor is fully responsible for all of 3.14. INCOME CLAIMS claims, a distributor, when presenting his or her verbal and/or written statements In their enthusiasm to enroll prospective or discussing the 4Life opportunity or made regarding 4Life products, services, distributors, some distributors are Marketing and Compensation Plan to a and the Marketing and Compensation occasionally tempted to make income prospective distributor, may not make Plan which are not expressly contained claims or earnings representations to income projections, income claims or in Official 4Life Materials. Distributors demonstrate the inherent power of network disclose his or her 4Life income (including agree to indemnify 4Life and hold it marketing. This is counterproductive the showing of checks, copies of checks or harmless from any and all liability including because new distributors may become bank statements). judgments, civil penalties, refunds, attorney disappointed very quickly if their results are fees, court costs or lost business incurred not as extensive or as rapid as the results 3.15. COMMERCIAL OUTLETS by 4Life as a result of the distributor’s others have achieved. At 4Life, we firmly 4Life strongly encourages the retailing and unauthorized representations or actions. believe that the 4Life income potential selling of its products and services through This provision shall survive the cancellation is great enough to be highly attractive, person to person contact. However, the of a distributor’s Distributor Agreement. without reporting the earnings of others. Company recognizes that some distributors While distributors may believe it beneficial may find that selling products from small 3.13. PRODUCT CLAIMS to provide copies of checks, or to disclose retail outlets may be beneficial. Therefore, No claims as to any products offered by the earnings of themselves or others, such distributors may sell 4Life products in 4Life may be made except those contained approaches have legal consequences that small, individually owned retail outlets. in Official 4Life Materials. In particular, no can negatively impact 4Life as well as 4Life products may not be sold in distributor may make any claim that 4Life the distributor making the claim unless department stores, chain or franchised products are useful in the cure, treatment, appropriate disclosures required by law are retail outlets, mass merchandising outlets, also made contemporaneously with the or any retail location with two thousand 11 081709 US ENG P&P.indd 12 10/19/09 3:44 PM
  13. 13. (2,000) square feet or more of retail may not recruit other 4Life distributors indirectly responds to an inquiry by a 4Life space. Distributors must obtain written or customers for any other multilevel distributor, this also constitutes recruiting. authorization from 4Life prior to selling or network marketing business. During Distributors may not display 4Life any 4Life products in a retail outlet, and the term of this Agreement and, for a products or services with any other non- 4Life retains the discretion to restrict its period of six (6) months following the 4Life products or services. If operating products from being sold in any retail cancellation thereof, a distributor or from a physical retail location, 4Life location which it does not deem acceptable. former distributor may not recruit any products or services must be displayed 4Life distributor or customer for another separately from non-4Life products or 3.16. TRADE SHOWS, multilevel marketing business. Because services. Distributors may not offer the EXPOSITIONS AND network marketing is often conducted 4Life opportunity, products or services OTHER SALES FORUMS over the telephone and via the Internet to prospective or existing customers or Distributors may display and/or sell 4Life through networks of individuals spanning distributors in conjunction with any non- products at trade shows and professional the U.S. and internationally, any narrow 4Life program, opportunity, product or expositions. Distributors may not display geographic limitation on the scope of this service. Distributors may not offer any and/or sell 4Life products at swap meets, non-solicitation policy would render it non-4Life opportunity, products or services garage sales, flea markets, farmer’s markets ineffective. Therefore, this policy shall apply at any 4Life-related meeting, seminar or or Internet auction sites without the prior to all countries where 4Life is officially convention. written consent of the Company. open for business. The term “recruit” means actual or attempted solicitation, 3.18. DOWNLINE ACTIVITY 3.17. CONFLICTS OF INTEREST enrollment, encouragement or effort to REPORTS / NONSOLICITATION influence in any way, either directly or All Downline Activity Reports and 4Life distributors are free to participate through a third party, a 4Life distributor the information contained therein are in other multilevel or network marketing or customer to enroll or participate in confidential and constitute proprietary business ventures or marketing another multilevel marketing, network business trade secrets information opportunities. However, during the marketing or direct sales opportunity. If the belonging to 4Life. Downline Activity term of this Agreement, distributors distributor or former distributor directly or Reports are provided to distributors 12 081709 US ENG P&P.indd 13 10/19/09 3:44 PM
  14. 14. 3. OPERATING A 4LIFE BUSINESS in strictest confidence and are made or in any manner attempt to influence preceding six (6) calendar months, available to distributors for the sole or induce any distributor or customer of within a different line of sponsorship. purpose of assisting distributors in 4Life, to alter their business relationship The use of a spouse’s or relative’s name, working with their respective Marketing with 4Life; trade names, DBAs, assumed names, Organizations in the development • Use or disclose to any person, corporations, partnerships, trusts, Federal of their 4Life business. Distributors partnership, association, corporation or Tax Identification Numbers or fictitious should use their Downline Activity other entity any information contained in identification numbers to circumvent this Reports to manage, motivate and any Downline Activity Report; policy is prohibited. This policy shall not train their Downline distributors. The • Upon demand by the Company, any prohibit the transfer of a 4Life business distributor and 4Life agree that, but current or former distributor will return in accordance with the “Sale, Transfer or for this agreement of confidentiality the original and all copies of Downline Assignment of 4Life Business” section of and nondisclosure, 4Life would not Activity Reports to the Company. The these Policies and Procedures. provide Downline Activity Reports to provisions of this policy shall survive the distributor. Accordingly, distributors the termination or cancellation of a 3.20. ERRORS OR QUESTIONS shall not, on his or her own behalf, distributor’s Distributor Agreement with If a distributor has questions about or on behalf of any other person, 4Life. or believes any errors have been made partnership, association, corporation or regarding commissions, bonuses, Downline other entity: 3.19. CROSS-SPONSORING Activity Reports or charges, the distributor • Directly or indirectly disclose any Actual or attempted cross-group must notify 4Life within sixty (60) days of information contained in any Downline sponsoring is strictly prohibited. “Cross- the date of the purported error or incident Activity Report to any third party; group sponsoring” is defined as the in question. 4Life will not be responsible • Use the information to compete with enrollment, indirect or otherwise, of an for any errors, omissions or problems not 4Life or for any purpose other than individual or entity that already has a reported within sixty (60) days. promoting his or her 4Life business; current customer number or Distributor recruit or solicit any distributor or Agreement on file with 4Life, or who customer of 4Life listed on any report, has had such an agreement within the 13 081709 US ENG P&P.indd 14 10/19/09 3:44 PM
  15. 15. 3.21. EXCESS INVENTORY 3.22. RIGHT OF PUBLICITY Internal Revenue Service. Each distributor PURCHASES PROHIBITED Distributors authorize 4Life to use their is responsible for paying local, state and Distributors are not required to carry name, photograph, federal taxes on any income generated inventory of products or sales aids. personal story and/or likeness in the as an independent distributor. If a 4Life Distributors who do so may find making Company’s advertising and/or promotional business is tax exempt, the Federal Tax retail sales and building a Marketing materials and waive all claims for Identification Number must be provided Organization somewhat easier because of remuneration for such use. to 4Life. the decreased response time in fulfilling customer orders or in meeting a new 3.23. GOVERNMENTAL 3.25. INDEPENDENT distributor’s needs. Each distributor must APPROVAL OR DISTRIBUTOR STATUS make his or her own decision with regard ENDORSEMENT Distributors are independent distributors, to these matters. To ensure that distributors Federal and state regulatory agencies and are not purchasers of a franchise or are not encumbered with excess inventory and/or officials do not approve or a business opportunity. The agreement that they are unable to sell, such inventory endorse any direct selling or network between 4Life and its distributors does not may be returned to 4Life upon the marketing companies or programs. create an employer/employee relationship, distributor’s cancellation or termination Therefore, distributors shall not represent agency, partnership, or joint venture pursuant to the “Return of Inventory and or imply that 4Life or its Marketing and between the Company and the distributor. Sales Aids by Distributors” section of these Compensation Plan have been “approved,” A distributor shall not be treated as Policies. “endorsed” or otherwise sanctioned by any an employee for his or her services or 4Life prohibits the purchase of products government agency. for Federal or State tax purposes. All in unreasonable amounts solely for the distributors are responsible for paying purpose of qualifying for commissions, 3.24. INCOME TAXES local, state, and federal taxes due from all bonuses or advancement in the Marketing Every year, 4Life will provide an IRS compensation earned as a distributor of the and Compensation Plan. Distributors may Form 1099 MISC (Non-employee Company. The distributor has no authority not purchase more inventory than they can Compensation) earnings statement to (express or implied), to bind the Company reasonably resell or consume in a month, each U.S. resident as required by the to any obligation. Each distributor shall nor may they encourage others to do so. 14 081709 US ENG P&P.indd 15 10/19/09 3:44 PM
  16. 16. 3. OPERATING A 4LIFE BUSINESS establish his or her own goals, hours and Official Company Materials. No distributor Department of 4Life. In many cases there methods of sale, so long as he or she may sell, give, transfer, import, export or are exceptions to the ordinance that apply complies with the terms of the Distributor distribute 4Life products or sales aids in to 4Life distributors. Agreement, these Policies, and applicable any unauthorized country. In addition, laws. no distributor may, in any unauthorized 3.28. COMPLIANCE WITH country: (A) conduct sales, enrollment or LAWS AND ETHICAL 3.26. INTERNATIONAL training meetings; (B) enroll or attempt to STANDARDS MARKETING enroll potential customers of distributors; Distributors shall comply with all federal, Because of critical legal and tax or (C) conduct any other activity for state and local laws and regulations in the considerations, 4Life must limit the the purpose of selling 4Life products, conduct of their businesses. In connection resale of 4Life products and services, and establishing a Marketing Organization, or with the operation of a distributor’s 4Life the presentation of the 4Life business promoting the 4Life opportunity. business, the violation of any law, or any opportunity to prospective customers and conduct that is unethical or, in 4Life’s distributors located within the United 3.27. ADHERENCE TO LAWS sole discretion, may tend to damage its States and U.S. Territories and other AND ORDINANCES reputation or goodwill, shall be grounds for authorized countries. Moreover, allowing Many cities and counties have laws disciplinary action. a few distributors to conduct business in regulating certain home-based businesses. markets not yet opened by 4Life would In most cases these ordinances are not 3.29. ONE 4LIFE BUSINESS PER violate the concept of affording every applicable to distributors because of DISTRIBUTOR distributor the equal opportunity to expand the nature of their business. However, A distributor may operate or have an internationally. distributors must obey those laws that do ownership interest, legal or equitable, as a Accordingly, distributors are authorized apply to them. If a city or county official sole proprietorship, partner, shareholder, to sell 4Life products and services, and tells a distributor that an ordinance applies trustee, or beneficiary, in only one 4Life enroll customers or distributors only in to him or her, the distributor shall be polite business. No individual may have, operate the countries in which 4Life is authorized and cooperative, and immediately send a or receive compensation from more than to conduct business, as announced in copy of the ordinance to the Compliance one 4Life business. Individuals of the same 15 081709 US ENG P&P.indd 16 10/19/09 3:44 PM
  17. 17. family unit may each enter into or have be deemed a violation by the entity, and This fee covers the expense of mailing and an interest in their own separate 4Life 4Life may take disciplinary action against time required to research files and make businesses, only if each subsequent family the entity. copies of the records. position is placed frontline to the first family member enrolled. A “family unit” is 3.31. REPACKAGING AND RE- 3.33. ROLL-UP OF MARKETING defined as spouses and dependent children LABELING PROHIBITED ORGANIZATION living at or doing business at the same Distributors may not repackage, re- Upon cancellation of a distributor, all address. label, refill or alter the labels on any individuals on the first level of the canceling 4Life products, information, materials or distributor shall move into the vacated 3.30. ACTIONS OF programs in any way. 4Life products must position. HOUSEHOLD MEMBERS be sold in their original containers only. OR AFFILIATED Such re-labeling or repackaging would 3.34. SALE, TRANSFER OR INDIVIDUALS likely violate federal and state laws, which ASSIGNMENT OF 4LIFE If any member of a distributor’s immediate could result in severe criminal penalties. BUSINESS household engages in any activity You should also be aware that civil liability Although a 4Life business is a privately which, if performed by the distributor can arise when, as a consequence of the owned, independently operated business, named on the application, would violate repackaging or re-labeling of products, the the sale, transfer or assignment of a any provision of the Agreement, such persons using the products suffer any type 4Life business is subject to certain activity will be deemed a violation by the of injury or their property is damaged. limitations. Unless otherwise agreed to distributor and 4Life may take disciplinary in writing, if a distributor wishes to sell action pursuant to these Policies against 3.32. REQUESTS FOR his or her 4Life business, the following the named distributor. Similarly, if any ADDITIONAL RECORDS criteria must be met: individual associated in any way with a Any request from a distributor for • The distributor shall offer the Company corporation, partnership, trust or other additional or replacement copies of the right of first refusal to purchase the entity (collectively “affiliated individual”) invoices, applications or other records will business on the same terms as it would violates the Agreement, such action(s) will require a fee of $1.00 per page per copy. be offered to any third party. If the 16 081709 US ENG P&P.indd 17 10/19/09 3:44 PM
  18. 18. 3. OPERATING A 4LIFE BUSINESS Company purchases the business, it is up 4Life business; their entire Marketing Organization to the Company’s discretion whether to • Prior to offering a 4Life business for sale, pursuant to the “Roll-Up of Marketing retain the business or allow a roll-up to the selling distributor must notify 4Life’s Organization” section of these Policies. occur; Corporate Offices of his or her intent to During the pendency of a divorce or • Protection of the existing line of sell the 4Life business. entity dissolution, the parties must sponsorship must always be maintained adopt one of the following methods of so that the 4Life business continues to be 3.35. SEPARATION OF A 4LIFE operation: operated in that line of sponsorship; BUSINESS • One of the parties may, with written • A buyer or transferee must become Distributors sometimes operate their consent of the other(s), operate the a qualified 4Life distributor. If the 4Life businesses as husband-wife 4Life business pursuant to an assignment buyer is an active 4Life distributor, he partnerships, regular partnerships, in writing whereby the relinquishing or she must first terminate his or her corporations or trusts. At such time spouse, shareholders, partners or trustees 4Life business and remain inactive for as a marriage may end in divorce, or authorize 4Life to deal directly and six (6) full calendar months before a corporation, partnership or trust solely with the other spouse or non- becoming eligible for a purchase, transfer, (the latter three entities are collectively relinquishing shareholder, partner or assignment or acquisition of any interest referred to herein as “entities”) may trustee; or in the 4Life business; dissolve, arrangements must be made to • The parties may continue to operate the • Before the sale, transfer or assignment assure that any separation or division of 4Life business jointly, whereupon all can be finalized and approved by the business is accomplished so as not to compensation paid by 4Life will be paid 4Life, any debt obligations the selling adversely affect the interests and income in the joint names of the distributors or distributor has with 4Life must be of other businesses up or down the line in the name of the entity to be divided satisfied; of sponsorship. If the separating parties as the parties may independently agree • The selling distributor must be in good fail to provide for the best interests of between themselves. If the parties elect standing and not in violation of any of other distributors and the Company, neither of the foregoing, 4Life will the terms of the Agreement in order to 4Life will involuntarily terminate the continue to pay commissions to the same be eligible to sell, transfer or assign a Distributor Agreement and roll-up 17 081709 US ENG P&P.indd 18 10/19/09 3:44 PM
  19. 19. individual(s) to whom commissions were she is thereafter free to enroll under any distributor or customer, the Company shall paid prior to the filing of the divorce Sponsor of their choosing, and need not regard the first application received by the or dissolution proceeding. Under wait six (6) months before reapplying. If Company as controlling. no circumstances will the Marketing a former entity affiliate has completely Organization of divorcing spouses or relinquished all rights in his or her 3.37. TRANSFER UPON DEATH a dissolving business entity be divided. original 4Life business, he or she must OF A DISTRIBUTOR Similarly, under no circumstances will remain inactive for six (6) full calendar Upon the death of a distributor, his 4Life split commission and bonus checks months before becoming eligible for or her business may be passed to between divorcing spouses or members a purchase, transfer, assignment or his or her heirs. Appropriate legal of dissolving entities. 4Life will recognize acquisition of any interest in the 4Life documentation must be submitted to only one Marketing Organization and business or before re-applying. In the Company to ensure the transfer will issue only one commission check divorce and entity dissolution cases, is proper. Accordingly, a distributor per 4Life business per commission the relinquishing party(s) shall have no should consult an attorney to assist cycle. Commission checks shall always rights to any distributors in their former him or her in the preparation of a will be issued to the same individual or organization or to any former retail or other testamentary instrument. entity. In the event that parties to customer. They must develop the new Whenever a 4Life business is transferred a divorce or dissolution proceeding business in the same manner as would by a will or other testamentary process, are unable to resolve a dispute over any other new distributor. the beneficiary acquires the right to the disposition of commissions and collect all bonuses and commissions of ownership of the business within six (6) 3.36. SPONSORING the deceased distributor’s Marketing months following the divorce filing or All Active Distributors in good standing Organization provided the following institution of dissolution proceedings, have the right to sponsor and enroll others qualifications are met. The successor(s) the Distributor Agreement shall be into 4Life. Each prospective customer or must: involuntarily canceled. If a former spouse distributor has the ultimate right to choose • Execute a Distributor Agreement; has completely relinquished all rights in his or her own Sponsor. If two distributors • Provide an original death certificate and his or her original 4Life business, he or claim to be the Sponsor of the same new a notarized copy of the will or other 18 081709 US ENG P&P.indd 19 10/19/09 3:44 PM
  20. 20. 3. OPERATING A 4LIFE BUSINESS instrument establishing the successor’s right to administer the 4Life business; right to the 4Life business; and (3) a completed Distributor • Comply with terms and provisions of the Agreement executed by the trustee. The Agreement; trustee must then: • Meet all of the qualifications for the • Execute a Distributor Agreement; deceased distributor’s status; • Comply with terms and provisions of the • Form a business entity and acquire a Agreement; Federal Tax Identification Number, if the • Meet all of the qualifications for the business is bequeathed to or inherited incapacitated distributor’s status. by joint heirs. 4Life will issue all bonus and commission checks and one IRS Form 1099 to the business entity. The heirs must provide 4Life with an address of record to which all bonus and commission checks will be sent. 3.38. TRANSFER UPON INCAPACITATION OF A DISTRIBUTOR To effect a transfer of a 4Life business because of a distributor’s incapacity, the successor must provide the following to 4Life: (1) a notarized copy of an appointment as trustee; (2) a notarized copy of the trust document or other documentation establishing the trustee’s 19 081709 US ENG P&P.indd 20 10/19/09 3:44 PM
  21. 21. 4. RESPONSIBILITIES OF DISTRIBUTORS 4.1. CHANGE OF ADDRESS OR supervision with the distributors in their 4.4. ONGOING SALES TELEPHONE Marketing Organizations. Examples of RESPONSIBILITIES To ensure timely delivery of products, such contact and supervision may include, Regardless of their level of achievement, support materials and commission checks, but are not limited to: newsletters, written distributors have an ongoing obligation it is critically important that 4Life’s files correspondence, personal meetings, to continue to personally promote sales are current. Street addresses are required telephone contact, voice mail, electronic through the generation of new customers for shipping since UPS cannot deliver to mail, and the accompaniment of Downline and through servicing their existing a post office box. Distributors planning to distributors to 4Life meetings, training customers. move should send their new address and sessions, and other functions. Upline telephone number to 4Life’s Corporate distributors are also responsible to motivate 4.5. NONDISPARAGEMENT Offices to the attention of the Distributors and train new distributors in 4Life product 4Life wants to provide its independent Services Department. To guarantee proper knowledge, effective sales techniques, the distributors with superior products, delivery, two (2) weeks advance notice 4Life Marketing and Compensation Plan, compensation plan and service in the must be provided to 4Life on all changes. and compliance with Company Policies. industry. Accordingly, we value your constructive criticisms and comments. 4.2. CONTINUING 4.3. INCREASED TRAINING All such comments should be submitted DEVELOPMENT RESPONSIBILITIES in writing to 4Life’s Distributor Services OBLIGATIONS AND As distributors progress through the Department. While 4Life welcomes ONGOING TRAINING various levels of leadership, they will constructive input, negative comments and Any distributor who is the Sponsor or become more experienced in sales remarks made by distributors about the Enroller of another distributor must techniques, product knowledge, and Company, its products or compensation perform a bona fide supervisory function understanding of the 4Life program. They plan serve no purpose other than to sour to ensure that his or her Downline will be called upon to share this knowledge the enthusiasm of other 4Life distributors. is properly operating his or her 4Life with lesser experienced distributors within For this reason, and to set the proper business. Distributors must have ongoing their Marketing Organization. example for their Downline Organization, contact, communication and management distributors must not disparage, demean 20 081709 US ENG P&P.indd 21 10/19/09 3:44 PM
  22. 22. 4. RESPONSIBILITIES OF DISTRIBUTORS or make negative remarks about 4Life, the incident such as dates, number of other 4Life distributors, 4Life’s products, occurrences, persons involved, and any the Marketing and Compensation Plan, or supporting documentation should be 4Life’s directors, officers or employees. included in the report. 4.6. PROVIDING DOCUMENTATION TO APPLICANTS Distributors must provide the most current version of the Policies and the Marketing and Compensation Plan to individuals whom they are sponsoring to become distributors before the applicant signs a Distributor Agreement. Additional copies of the Policies can be acquired from 4Life. 4.7. REPORTING POLICY VIOLATIONS Distributors observing a violation of the Policies by another distributor should submit a written report of the violation directly to the attention of the 4Life Compliance Department. Details of 21 081709 US ENG P&P.indd 22 10/19/09 3:44 PM
  23. 23. 5. SALES REQUIREMENTS 5.1. PRODUCT SALES price (“wholesale price” being defined as The 4Life Marketing and Compensation the amount of a single container of product Plan is based upon the sale of 4Life designated in the 4Life Product Price List products and services to end consumers. as published and modified from time to Distributors must fulfill personal and time) will be terminated, without any cure Marketing Organization retail sales period. requirements (as well as meet other responsibilities set forth in the Agreement) 5.3. SALES RECEIPTS to be eligible for bonuses, commissions If a distributor sells any 4Life product from and advancement to higher levels of his or her inventory, he or she must give achievement. At least seventy percent (70%) the customer a copy of a 4Life retail sales of a distributor’s total monthly Personal receipt at the time of the sale. Distributors Life Point Volume must be sold to personal must maintain all retail sales receipts for a retail customers. period of two (2) years and furnish them to 4Life at the Company’s request. Records 5.2. NO PRICE OR TERRITORY documenting the purchases of Distributors’ RESTRICTIONS Preferred Customers will be maintained by Distributors are not required to sell 4Life 4Life. products at the suggested retail prices set by 4Life on the 4Life Product Price List. Distributors may sell 4Life products at any price they choose. There are no exclusive territories granted to anyone. No franchise fees are required. Any distributor who advertises and/or offers to sell 4Life brand products at a price less than the wholesale 22 081709 US ENG P&P.indd 23 10/19/09 3:44 PM
  24. 24. 6. BONUSES AND COMMISSIONS 6.1. BONUS AND COMMISSION 6.2. ADJUSTMENT TO 6.3. UNCLAIMED QUALIFICATIONS BONUSES AND COMMISSIONS AND A distributor must be active and in COMMISSIONS FOR CREDITS compliance with the Agreement to qualify RETURNED PRODUCTS Distributors must deposit or cash for bonuses and commissions. So long as a AND SERVICES commission and bonus checks within six distributor complies with the terms of the Distributors receive bonuses and (6) months from their date of issuance. A Agreement, 4Life shall pay commissions commissions based on the actual sales check that remains uncashed after six (6) to such distributor in accordance with the of products to end consumers. When a months will be void. After a check has been Marketing and Compensation Plan. The product is returned to 4Life for a refund voided, 4Life will credit the distributor’s minimum amount for which 4Life will issue or is repurchased by the Company, the account. There shall be a $15.00 charge for a check is determined by the Company. If a bonuses and commissions attributable to such a transaction; plus a $10.00 monthly distributor’s bonuses and commissions do the returned or repurchased product(s) will maintenance fee. Any other issued credit not equal or exceed the minimum amount, be deducted, in the month in which the (other than a voided check) that remains the Company will accrue the commissions refund is given or will be withheld from unused after six (6) months will incur a and bonuses until they reach the minimum any bonus, commission or other amount $10.00 monthly maintenance fee. amount. A check will be issued once this owed by the Company. Deductions will amount has been accrued. continue every pay period thereafter until the commission is recovered from the distributors who received bonuses and commissions on the sales of the refunded goods. 23 081709 US ENG P&P.indd 24 10/19/09 3:44 PM
  25. 25. 7. PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASE 7.1. PRODUCT GUARANTEE Distributors” section of these Policies, and distributor may only return products and 4Life offers a one hundred percent the distributor’s Distributor Agreement sales aids he or she personally purchased (100%) 30-day money back satisfaction shall be canceled. from the Company under his or her guarantee (less shipping charges) to all Distributor Identification Number, and retail customers. If a customer purchased 7.2. RETURNS BY which are in Resalable condition. Upon a product from a 4Life distributor, the DISTRIBUTORS receipt of the products and sales aids, customer must return the product to that (PRODUCTS RETURNED the distributor will be reimbursed ninety distributor for a refund, replacement or BY PERSONAL RETAIL percent (90%) of the net cost of the original exchange. If a customer purchased the CUSTOMERS) purchase price(s), less shipping charges. If product directly from the Company, the If a personal retail customer returns a the purchases were made through a credit product should be returned directly to the product to the distributor from whom it card, the refund will be credited back to Company. was purchased, the distributor may return the same account. The Company shall If a distributor is unsatisfied with any 4Life it to the Company for an exchange or deduct from the reimbursement paid to product purchased for personal use, the replacement (the distributor returning the distributor any commissions, bonuses, distributor may return the product within the product is responsible for all shipping rebates or other incentives received by the thirty (30) days from the date of purchase charges). distributor which were associated with the for a one hundred percent (100%) refund, merchandise that is returned. a replacement or exchange (less shipping 7.3. RETURN OF INVENTORY charges). This guarantee is limited to $300 AND SALES AIDS BY in any 12-month period. If a distributor DISTRIBUTORS wishes to return merchandise exceeding Upon cancellation of a distributor’s $300 in any 12-month period, the return Distributor Agreement, the distributor may will be deemed an inventory repurchase return inventory and sales aids purchased and the Company shall repurchase the within one (1) year from the date of inventory pursuant to the terms in the cancellation for a refund if he or she is “Return of Inventory and Sales Aids by unable to sell or use the merchandise. A 24 081709 US ENG P&P.indd 25 10/19/09 3:44 PM
  26. 26. 7. PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASE 7.4. PROCEDURES FOR ALL shipping-collect packages. The risk of RETURNS loss in shipping for returned product The following procedures apply to shall be on the distributor. It is the sole all returns for refund, repurchase or responsibility of the distributor to trace, exchange: insure or otherwise confirm that the Company has received the shipment. If • All merchandise must be returned by the a distributor is returning merchandise to distributor or customer who purchased it 4Life that was returned to him or her by directly from 4Life. a personal retail customer, the product • All products to be returned must have must be received by 4Life within ten (10) a Return Authorization Number which days from the date on which the retail will be obtained by calling the Distributor customer returned the merchandise to Services Department. This Return the distributor, and must be accompanied Authorization Number must be written by the sales receipt the distributor gave to on each carton returned. The return must the customer at the time of the sale. No be accompanied by: refund or replacement of product will be • A copy of the original dated retail sales made if the conditions of these rules are receipt (if product was returned to the not met. distributor by a retail customer); and • The unused portion of the product in its original container. Proper shipping carton(s) and packing materials are to be used in packaging the product(s) being returned for replacement. All returns must be shipped to 4Life shipping pre-paid. 4Life does not accept 25 081709 US ENG P&P.indd 26 10/19/09 3:44 PM
  27. 27. 8. DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS 8.1. DISCIPLINARY • Suspension of the individual’s Distributor 8.3. APPEALS OF SANCTIONS SANCTIONS Agreement for one or more pay periods; Following the issuance of a sanction Violation of the Agreement, these • Involuntary cancellation of the offender’s (other than a suspension pending an Policies, or any illegal, fraudulent, Distributor Agreement; investigation), the disciplined distributor deceptive or unethical business conduct • Any other measure expressly allowed may appeal the sanction to the Company. by a distributor may result, at 4Life’s within any provision of the Agreement The distributor’s appeal must be in writing discretion, in one or more of the or which 4Life deems practicable to and received by 4Life’s Compliance following corrective measures: implement and appropriate to equitably Department within fifteen (15) days from resolve injuries caused partially or the date of 4Life’s sanction notice. If the • Issuance of a written warning or exclusively by the distributor’s Policy appeal is not received by 4Life within the admonition; violation or contractual breach; and/or fifteen (15) day period, the sanction will • Requiring the distributor to take • In situations deemed appropriate by be final. The distributor must submit all immediate corrective measures; 4Life, the Company may institute legal supporting documentation with his or her • Loss of privileges, including but not proceedings for monetary and/or appeal correspondence and specify in full limited to loss of voicemail privileges; equitable relief. detail the reasons why he or she believes • Loss of rights to one or more bonus and the Company’s initial determination was commission checks; 8.2. GRIEVANCES AND erroneous. If the distributor files a timely • 4Life may withhold from a distributor COMPLAINTS appeal of the sanction, the Company will all or part of the distributor’s bonuses When a distributor has a grievance or review and reconsider the cancellation, and commissions during the period complaint with another distributor consider any other appropriate action that 4Life is investigating any conduct regarding any practice or conduct in and notify the distributor in writing of its allegedly violative of the Agreement. relationship to their respective 4Life decision. If a distributor’s business is canceled businesses, the complaining distributor for disciplinary reasons, the distributor should report, in writing, to the will not be entitled to recover any Compliance Department at the Company. commissions withheld during the investigation period; 26 081709 US ENG P&P.indd 27 10/19/09 3:44 PM
  28. 28. 8. DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS 8.4. ARBITRATION Each party to the arbitration shall be 8.5. GOVERNING LAW, Any legal cause of action arising out of or responsible for its own costs and expenses JURISDICTION AND relating to the Agreement, or the breach of arbitration, including legal and filing VENUE thereof, shall be settled by arbitration fees. The decision of the arbitrator shall be Jurisdiction and venue of any matter not administered by the American Arbitration final and binding on the parties and may, subject to arbitration shall reside in Salt Association under its Commercial if necessary, be reduced to a judgment in Lake County or Utah County, State of Arbitration Rules, and judgment on the any court of competent jurisdiction. This Utah, unless the laws of the state in which award rendered by the arbitrator may be agreement to arbitration shall survive a distributor resides expressly require the entered in any court having jurisdiction any termination or expiration of the application of its laws, in which case that thereof. Distributors waive all rights to Agreement. state’s law shall govern all issues relating trial by jury or to any court. All arbitration Nothing in the Agreement shall prevent to jurisdiction and venue. The Federal proceedings shall be held in Salt Lake 4Life from applying to and obtaining Arbitration Act shall govern all matters County, Utah, unless the laws of the state from any court having jurisdiction a writ relating to arbitration. The laws of the in which a distributor resides expressly of attachment, a temporary injunction, State of Utah shall govern all other matters require the application of its laws, in which preliminary injunction, permanent relating to or arising from the Agreement case the arbitration shall be held in the injunction or other relief available to unless the laws of the state in which a capital city of that state. safeguard and protect 4Life’s interest prior distributor resides expressly require the All parties shall be entitled to all discovery to, during or following the filing of any application of its laws. rights pursuant to the Federal Rules arbitration or other proceeding or pending of Civil Procedure. There shall be one the rendition of a decision or award in arbitrator, an attorney at law, who shall connection with any arbitration or other have expertise in business law transactions proceeding. with a strong preference being an attorney knowledgeable in the direct selling industry, selected from the panel that the American Arbitration Panel provides. 27 081709 US ENG P&P.indd 28 10/19/09 3:44 PM
  29. 29. 9. ORDERING 9.1. PURCHASING 4LIFE 9.3. SHIPPING AND bonuses withheld in a subsequent month in PRODUCTS BACKORDER POLICY which the refund is issued. Each distributor should purchase his 4Life will normally ship products within or her products directly from 4Life. If one (1) day from the date on which it 9.4. CONFIRMATION OF a distributor purchases products from receives an order. 4Life will expeditiously ORDER another distributor or any other source, ship any part of an order currently in A distributor and/or recipient of an order the purchasing distributor will not receive stock. If, however, an ordered item is out- must confirm that the product received the Personal Life Point Volume associated of-stock, it will be placed on backorder matches the product listed on the shipping with that purchase. Purchases made from and sent when 4Life receives additional invoice, and is free of damage. Failure to authorized LP Centers are excepted from inventory. Distributors will be charged notify 4Life of any shipping discrepancy or this policy. and given Personal Life Point Volume damage within thirty (30) days of shipment on backordered items unless notified on will cancel a distributor’s right to request a 9.2. GENERAL ORDER POLICIES the invoice that the product has been correction. On mail orders with invalid or incorrect discontinued. 4Life will notify distributors payment, 4Life will attempt to contact the and customers if items are backordered 9.5. PAYMENT AND SHIPPING distributor by phone, and/or mail to try to and are not expected to ship within thirty DEPOSITS obtain another payment. If these attempts (30) days from the date of the order. No monies should be paid to or accepted are unsuccessful after five (5) working days, An estimated shipping date will also be by a distributor for a sale to a personal retail the order will be returned unprocessed. provided. Backordered items may be customer except at the time of product No C.O.D. orders will be accepted. 4Life canceled upon a distributor’s request. delivery. Distributors should not accept maintains no minimum order requirements. Distributors may request a refund, credit monies from retail customers to be held for Orders for products and sales aids may be on account, or replacement merchandise deposit in anticipation of future deliveries. combined. for canceled backorders. If a refund is requested, the distributor’s Personal Life 9.6. INSUFFICIENT FUNDS Point Volume will be decreased by the It is the responsibility of each distributor amount of the refund in the month and to ensure that there are sufficient funds 28 081709 US ENG P&P.indd 29 10/19/09 3:44 PM

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