POLICIES AND PROCEDURES - GNLD.com

QUICK REFERENCE ..................................2

DISTRIBUTOR CODE OF CONDUCT ..............3

A. DISTRIBUTORSHIPS................................4The Independent Distributor AgreementOne Agreement Per HouseholdAge RestrictionSponsoring DistributorsActive DistributorsInactive DistributorsTerritoryInternational SponsoringMaintenance of Director RecognitionSponsor ResponsibilitiesRecognition Pins

B. LINES OF SPONSORSHIP ........................7TransfersSale/Purchase of a DistributorshipInheritance of DistributorshipsPartnerships, Corporations and TrustDivorce

C. ADVERTISING ....................................11Independent BusinessUse of GNLD’s Trade Name andTrademarksTelephone DirectoryStore Sales and DisplaysGNLD Training and Service CentresGNLD Distributor Websites

D. PRODUCTS ........................................16The GNLD GuaranteeExchange of Product/Inv. ImbalanceRepurchase PolicyLoansProducts and their Intended UsesRepackaging GNLD ProductsLiterature ChangesExclusive GNLD Sales

E. RESOLVING POLICY VIOLATIONS ............18Censure or Cancellation

F. THE BASICS OF ORDERING ..................19Who Can OrderHow To Pay For OrdersSuggested Member Price OrderingDistributor Cost OrderingOrdering Business Literature

G. HOW TO PLACE AN ORDER

WITH GNLD....................................20Ordering on the Internet Ordering by Telephone or FaxOrdering by Mail

H. SHIPPING POLICIES ............................23GNLD Canada’s Shipping DestinationsShipping Cases and SinglesShipping/Delivery TimeFreight/Handling ChargesDrop-ShipmentsTracking Late OrdersCommon Carrier DeliveriesShort or Damaged Shipments

I. ACCOUNTING POLICIES ......................25End of Month (EOM) ProceduresTelephone, FAX or Internet, at EOM

J. TAX INFORMATION ............................26Keeping Accurate Business RecordsPST, GST and HST

K. PAYMENT OF COMMISSIONS ................27

L. ASSOCIATION RENEWAL ......................28Distributor Web ToolsLifestyle Magazine

M.CONTACTING DISTRIBUTOR SERVICES ....29Staying In Touch With Your SponsorOne-Call Service: Your Direct Link toGNLDChanging Your Address or Master File Info

N. PRODUCT RETURNS ............................30Damaged or Missing ItemsCustomer Guarantee

O. LEADERSHIP ......................................31

P. MEETING ROOM CONDUCT..................31

GNLD INTERNATIONAL

Policies & Procedures 1

POLICIES AND PROCEDURESTABLE OF CONTENTS

MAILING ADDRESS (FOR CORRESPONDENCE):GNLD International3-400 Britannia Rd. E.Mississauga, ON L4Z 1X9

SHIPPING ADDRESS (FOR PARCELS AND RETURNS):GNLD International3-400 Britannia Rd. E.Mississauga, ON L4Z 1X9

DISTRIBUTOR SERVICES/ORDER ENTRY:Open Monday through Thursday,

9:00 a.m. – 5:00 p.m., Eastern Standard TimeFriday

9:00 a.m. – 4:00 p.m., Eastern Standard Time

ORDER ONLINE AT: www.gnld.com24 hrs/7 days a week.Requires a Distributor ID# and PIN#.Order until midnight on last day of sales month.

DIRECT TELEPHONE TO

GNLD CORPORATE OFFICE: (905) 890-7120 or (800) 361-5591

GNLD CORPORATE FAX: (905) 890-9737

GNLD WEB SITES: www.gnld.comwww.gr2control.comwww.carotenoidcomplex.com

GNLD INTERNATIONAL

2 Policies & Procedures

QUICK REFERENCE FOR DOING

BUSINESS WITH GNLD

The GNLD Policies and Procedures andCode of Conduct illustrate importantprinciples necessary in the development andmaintenance of a GNLD distributorship.Together, they define the rights, duties andresponsibilities of all GNLD Distributors.They protect the benefits available to allGNLD Distributors under the MarketingPlan as well as define the goals, values andadvantages of operating a GNLD businesswhile respecting the rights and opportunitiesof both our Distributors and the consumers

they serve. All Distributors agree to abideby these Policies and Procedures as well as theCode of Conduct, and any modifications madefrom time to time after they have signedthe Independent Distributor Agreement.

GNLD reserves the right to modify allor part of its Policies and Procedures, Codeof Conduct or Marketing Plan. Any changewill be made only after careful considerationand review of its impact upon GNLDdistributorships.

POLICIES AND PROCEDURES

GNLD INTERNATIONAL


DISTRIBUTOR CODE OF CONDUCTThe GNLD Distributor Code of Conduct is based on our foundation

values that guide everything we do and every decision we make. Thesevalues of absolute integrity, putting people first, producing products that work,providing equal opportunity for all and having a clear long-range vision area heritage that must be preserved, supported and upheld by every GNLDDistributor. All Distributors who join GNLD are required to abide by thisCode of Conduct and to uphold the Policies and Procedures as stated inthis document.

1. I will conduct myself in a friendly and professional manner at alltimes and with complete courtesy, dignity and truthfulness in dealingwith customers, fellow Distributors and company personnel.

2. I will observe standard meeting etiquette at all GNLD functions andalways remember that I am responsible for upholding and projecting theGNLD image.

3. I will abide by the letter and spirit of the GNLD Policies andProcedures and the rules and regulations of any country where I conductmy business. I will do what is legally correct and ethically right.

4. I will honestly and accurately represent the GNLD opportunity,Marketing Plan and products and make no exaggerated claims aboutGNLD products or income potential.

5. I will enthusiastically and proudly carry out the responsibilities of a GNLD Distributor as well as that of a Sponsor when I progress to those levels.

6. I will always abide by and uphold the GNLD corporate philosophyand values and strive to truly make a positive difference in people’s lives.

1. THE INDEPENDENT DISTRIBUTOR AGREEMENT

The Independent Distributor Agreementis an honorable, legal and serious expressionof the intent between the new Distributor, theSponsor, the Sponsor’s Sponsor and GNLD.

When the Independent DistributorAgreement is signed, all parties are requiredto display good faith, fair dealing and ethicalconduct in the pursuit of their business goals.GNLD Distributors agree to abide by theGNLD Policies and Procedures and the GNLDCode of Conduct as they are declared andas they may be amended from time to time.

GNLD Distributors further agree:

a) To make, execute and file any and allreports required by law or public authoritywith respect to the conduct of their GNLDdistributorship business.

b) To comply with all laws, rules andregulations applicable to the conduct oftheir GNLD distributorship business.

c) To represent GNLD nutritionalproducts as superior food supplements,acknowledging that they are not intendedfor the cure, treatment or improvement ofany disease, illness or physical ailment.

d) To characterize and represent GNLDproducts in conformity with GNLD corporateclaims and representations. Claims basedupon non-GNLD references and researchare the sole responsibility of the GNLDDistributor.

e) To use GNLD trade names, trademarks,service marks and copyrighted materials instrict conformity to GNLD requirements.

f ) To refrain from reproducing, printing,manufacturing, repackaging or causingothers to do the same in regard to GNLDproducts, literature, photographs, videosand other GNLD sales aids, except asauthorized by GNLD.

g) That GNLD Distributors areindependent contractors and are notemployees or agents of GNLD.

h) That GNLD Distributor recognitionand achievement titles are not corporatetitles or positions.

i) That GNLD Distributors conducttheir distributorships for their own accountsand that all costs of conducting a GNLDdistributorship is the sole responsibility ofeach individual Distributor.

j) That GNLD Distributors cannot obligatethe company for any costs or expenses, norcan a GNLD Distributor incur liability onbehalf of the company in any way.

2. ONE AGREEMENT PER HOUSEHOLD

All (a) spouses, (b) cohabitating domesticpartners, and (c) children living together asa household or family unit will be regardedas a single distributorship. Only oneIndependent Distributor Agreement willbe accepted from such a household/familygroup.

Spouses, regardless of place of domicile,and cohabitating domestic partners maynot sponsor each other, and are considereda single distributorship regardless ofwhether they both sign the IndependentDistributor Agreement. In any case wheretwo Distributors, each of whom has aseparate distributorship, marry each other,or commence co-habitation in a domesticpartner relationship with each other, one ofthese Distributors must surrender his/herdistributorship and be added to the samedistributorship as his/her spouse orcohabitating domestic partner.

When a child reaches the minimum agerequirement and continues living withhis/her household or family unit, he/shemay qualify to be considered forindependent GNLD InternationalDistributor status after submitting aFinancial Independence Statement, whichmust be approved by GNLD International.

*DEFINITIONS:Cohabitating: Living together in thesame home environment.

Domestic Partners: Two adults,regardless of gender, who have chosen toshare one another’s lives in an intimate and

A. DISTRIBUTORSHIPS

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committed relationship of mutual caring.

3. AGE RESTRICTION

The minimum age requirement for anindependent Distributor is eighteen (18)years of age or the age of majority in thecountry of his residency, whichever is older.

4. SPONSORING DISTRIBUTORS

When a person signs an IndependentDistributor Agreement, a legal relationshipbetween the new Distributor and theSponsor, the Sponsor’s Sponsor, GNLD andany party normally receiving compensationthrough the GNLD Marketing Plan, isestablished for the life of the IndependentDistributor Agreement or extensions thereof.

Occasionally, two GNLD Distributorsmay contact the same person in order tosponsor him/her as a GNLD Distributor.A contractual relationship will exist betweenthe new Distributor and the existingDistributor who first obtains the prospectiveDistributor’s signature on the IndependentDistributor Agreement, in accordance withthe Code of Conduct and companyprocedures for Meeting Room Conduct.

5. ACTIVE DISTRIBUTORS

Because of the cost of maintaining recordsfor accounting, mailing lists, printing andmailing publications, promotional pieces,etc., it is necessary to establish a criteria formaintaining “active status” as a GNLDDistributor. To maintain active Distributorstatus, the annual subscription fee must be paid.

MINIMUM MONTHLY ACTIVITY:To remain eligible for volume pooling creditfor any given Sales Month, a Distributormust generate at least 100 Personal PVduring the same Sales Month.

6. INACTIVE DISTRIBUTORS

A distributorship must pay its annualsubscription fee to remain active in its lineof sponsorship.

GNLD distributors may occasionally meetinactive former distributors and wish toreintroduce them to GNLD. A distributormay sponsor another distributor who haslost contact with their sponsor and has beeninactive* for a period of 18 months. GNLDwill confirm the period of inactivity with theoriginal sponsor and the upline Director ifthe original sponsor is not a Director. If theinactive distributor had a sales team in hisoriginal sponsorship line, that sales team

moves to his former sponsor.

For a Director to become inactive, theDirector must resign their distributorship bywritten notification to the upline sponsorand GNLD that the distributor intends tocease trading as a distributor. The 18-monthinactivity will be measured from the datethey lose their Director title according toGNLD’s current Marketing Plan.

*During the period of inactivity the distributorshipmust not sponsor, record personal volume, or purchaseproduct from a Distributor at Member or Distributor cost.

7. TERRITORY

A GNLD Distributor’s global sales anddistributorship opportunities are territoriallyunrestricted within the country in which theGNLD company with which the Distributorhas signed up, and is established andoperating. A GNLD Distributor canorganize and establish a GNLD Distributornetwork and, in general, build a GNLDbusiness in any existing GNLD market.

GNLD Distributors are authorized totransfer their distributorship to any GNLDcompany which has been established in anyforeign country away from their country ofresidence, provided that they becomeDistributors of the company through theregular process available to all personsjoining that particular GNLD company’smarketing network.

GNLD does not grant exclusiveDistributor territories or franchises.

8. INTERNATIONAL SPONSORING

International sponsoring can help yourinternational friends build distributorshipsof their own, and subject to qualifications,contribute to your earnings. Contact yourSponsor, upline Director, or DistributorServices Representative for complete policiesand procedures regarding developing aninternational GNLD business. GNLDDistributors are not authorized to sell productor sponsor Distributors in any country inwhich GNLD has not been established.

9. MAINTENANCE OF DIRECTOR

RECOGNITION LEVEL

GNLD’s Director benefits are privilegesearned by special recognition as a result ofdemonstrated performance of sponsorshipresponsibilities, demonstrated leadershipqualities and exemplary loyalty to GNLD.For this reason, GNLD reserves the right

GNLD INTERNATIONAL


to withhold some or all of these benefitsor to reduce or terminate the status of anyDirector for dereliction of sponsorshipresponsibilities, violations of the GNLDPolicies and Procedures and Code of Conduct,misuse of privileges of sales leadership or forconduct disloyal to GNLD or its Distributors.

10. SPONSOR RESPONSIBILITIES

a) Sponsors must honour and conform tothe GNLD Policies and Procedures andthe GNLD Code of Conduct and anymodifications made thereto from time to time.

b) Sponsors shall provide GNLDDistributor training and education to themembers of their sponsored sales organization.

c) Sponsors shall encourage the members oftheir sponsored sales organization to promotetheir GNLD distributorship businesses andto fulfill their respective responsibilities totheir downline GNLD Distributors.

d) Sponsors shall display, encourage andinspire honesty in the promotion of theGNLD business, loyalty to the GNLDopportunity and products, andcommitment to the pursuit of excellence inthe distribution of GNLD products.

e) Sponsors shall monitor the activities oftheir sponsored downline Distributors toensure compliance with the GNLD Policiesand Procedures and the Code of Conduct.

f ) Sponsors and all Distributors, shall carefully protect the personalinformation of customers and their SalesTeam members and shall abstain fromusing said information for purposesunrelated to the GNLD business.

11. RECOGNITION PINS

The GNLD Distributor pin that youreceive when you register as a Distributorwith the company is yours to keep.

GNLD INTERNATIONAL


1. TRANSFERS

It is GNLD’s policy not to transfer aDistributor from one line of sponsorshipto another line of sponsorship. The integrityof a line of sponsorship is of utmostimportance to GNLD’s Marketing Plan.With this assurance that sales teams willremain intact, Distributors can confidentlybuild their businesses.

The active solicitation or encouragementof Distributors to transfer from other salesteams is completely contrary to the Codeof Conduct, is disruptive of morale, andundermines the growth and stability ofsales teams. Such active encouragementmay result in censure, cancellation, orother appropriate disciplinary proceduresat the discretion of GNLD.

2. SALE/PURCHASE OF A DISTRIBUTORSHIP

If for compelling personal reasons aGNLD Distributor wishes to sell his/herdistributorship, the following policies arecontrolling:

Since GNLD initially approvesdistributorships and since the integrity ofsales teams is of utmost importance, GNLDreserves the right to approve or disapprovethe sale of a distributorship. An agreementof sale regarding the subject distributorshipmust be prepared and submitted to GNLDfor approval of the sale at least thirty (30)days prior to consummation of the subjectsale. Any distributorship privileges mayonly be transferred with GNLD’s consent.Protection of existing sponsorship linesmust always be maintained. Thus, whensold, a distributorship must continue to beoperated in the existing line of sponsorship.The buyer takes the vacated position of theselling Distributor.

Acquisition of the distributorship does notin and of itself entitle the purchaser to thetitle, rights or privileges previously earned bythe acquired sales team. The purchaser mustqualify for such title, rights and privileges.

The following procedures must befollowed to accomplish a sale. All optionsmust be in writing.

a) Prior to selling a distributorship, theseller must notify GNLD of the intent tosell. This intent should be in writing.

b) It must be stated in writing whetherthe seller wishes to remain a non-sponsoringDistributor or is withdrawing from theGNLD business.

c) First option to purchase must go to theSponsor. This should be accomplished bymaking a written bona fide offer to sell to theSponsor. Bona fide is defined as in or withgood faith, honestly, openly and sincerely,without deceit or fraud. The offer must bedefinite and certain as to terms. It must becommunicated in writing to the Sponsor. TheSponsor must communicate in writing backto the seller within thirty (30) days if theSponsor is accepting or refusing the offer.

d) Second option to purchase of thesame bona fide offer must go to the directlysponsored Distributors (first level) of the seller.

e) Third option to purchase must go to anon-GNLD Distributor. If the offer is acceptedand approved by GNLD, the buyer mustfirst be sponsored as a GNLD Distributor.

f ) Only after the above options to purchasehave been exhausted may a Distributor fromanother line of sponsorship be approachedwith the same bona fide option to purchase.Should a sale result, the buyer takes thevacated position of the seller leaving his/herteam behind.

g) If the bona fide offer is altered in anyway, the procedure above must be repeatedwith the first right of refusal going to theSponsor, etc.

h) In regard to a sale, an IndependentDistributor Agreement creates legal rightsand obligations between the Distributor,Sponsor, the Sponsor’s Sponsor and anyparty who normally receives compensationthrough the GNLD Marketing Plan.

i) A sale is not complete until receivedand recorded by GNLD. No monies shouldbe exchanged unless placed in an escrowservice to be released after final writtenapproval by GNLD of the sale is receivedby all parties concerned.

B. LINES OF SPONSORSHIP

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j) Effective date of sale must be the firstday of the month. Once the agreement isreached, it must be signed by the seller(s)and buyer(s) and the signature must bewitnessed. The sales agreement should thenbe sent to GNLD in three (3) copies. Ifapproved, GNLD will endorse the saleagreements and return one copy each to theseller and to the buyer. The third copy willbe retained in GNLD’s permanent files. Theparties to the sale should not pay the purchaseprice or make any transfers of propertyand/or Distributors until after GNLD hasapproved the sale in writing. Where the buyeris not the seller’s Sponsor, but is one of theSeller’s directly sponsored Distributors, thesales agreement must be accompanied by asigned statement by the Distributor’sSponsor waiving his first option to buy thedistributorship. If the buyer is a third party(item d) not presently a GNLD Distributor,the sales agreement must be accompaniedby: 1) a Sponsor waiving his first option tobuy; 2) a statement signed by the sellingDistributor that he gave written notice toall his directly sponsored Distributors of hisintention to sell and that none of themexercised their second option to buy; and 3) a signed Independent DistributorAgreement, duly endorsed by the sellingDistributor’s Sponsor.

Acquisition of a sales team or distributorshipthrough purchase, pass up, termination,retirement, or other fortuitous method mayonly be used as “one leg” qualification forany Director level for the period of oneyear following acquisition unless GNLDdetermines otherwise.

3. INHERITANCE OF DISTRIBUTORSHIPS

A GNLD distributorship may be passedon to the heirs of the Distributor as part ofhis/her estate in much the same manner asany other business. GNLD will honour any transfer to an heir which complies with applicable law and meets the basicrequirements established by GNLD.

A. Beneficiaries Must Be DistributorsThe monetary value of a GNLD

distributorship is based upon the profitpotential in regard to the sale of GNLDproducts by that distributorship. GNLDsells its products only to GNLD Distributors.It is therefore obvious that any GNLDdistributorship which has been transferredto an heir must be operated by a GNLD

Distributor in order for that distributorshipto purchase products from GNLD orreceive commissions, bonuses and rebatesfrom GNLD.

In the case of sole proprietorships whereboth husband and wife jointly own thebusiness, the death of one party causes thedistributorship to be automatically transferredto the surviving party. GNLD will adjustits records to reflect a proper transfer uponnotice of the death of a Distributoraccompanied by a certified copy of therespective Death Certificate.

In cases of sole proprietorships where thedeceased Distributor is not survived by aspouse who is also a Distributor operatingthe subject distributorship, the distributorshipshall be transferred according to the termsof the Will of the deceased or in accordwith the laws of province successionapplicable in the province of residence of the deceased Distributor.

A surviving spouse or heir must take stepsto take over the inherited distributorship andoperate it according to the GNLD MarketingPlan within sixty (60) days of the death ofthe deceased Distributor. If such action isnot taken, GNLD may appoint an “interimmanager” of the subject distributorshippending resolution of the inheritance process.

In certain cases, GNLD may suspend orterminate the distributorship of the deceasedDistributor if the distributorship does notcontinue its service and distribution activitieswithin a reasonable period of time followingthe demise of the Distributor.

In the event that a distributorship isinherited by a minor or a party who is, atthe sole discretion of GNLD, physically ormentally unable to operate such a business,the distributorship may only be operatedthrough a guardian or trustee until one ormore of the minor heirs have attained theage of majority and have assumed theresponsibility of operating the distributorship,or until the incompetent heir is capable tooperate the distributorship.

B. Registration of BeneficiariesIt is required that designated beneficiaries

be registered with GNLD.

C. Dual DistributorshipsIn order to protect and maintain the

integrity of sponsorship lines within the

GNLD INTERNATIONAL


GNLD marketing system, a beneficiarywho inherits a GNLD distributorship andis a GNLD Distributor operating anindependent, previously existing GNLDdistributorship, must elect to operate eitherthe inherited distributorship or his/herpreviously existing distributorship.

The distributorship which the inheritingbeneficiary chooses not to operate may beabandoned or sold in accordance with theGNLD Policies and Procedures regulatingthe sale of distributorships.

Downline distributorships, which areinherited by beneficiaries who areimmediate upline Sponsors of the inheriteddistributorship, may be merged into theupline distributorship.

When a downline Distributor inherits adistributorship which is in the immediateupline Sponsor position to that inheritingbeneficiary, the downline distributorship maybe merged into the upline distributorship,or it may be sold in accordance with thePolicies and Procedures.

D. Continued QualificationIt should be understood that in order for

an inherited distributorship to earn incomeor recognition from its GNLD business, thatdistributorship must continue to meet allqualifications and requirements as establishedunder the GNLD marketing system.

E. Recognition LevelsFor a minimum period of 12 months after

acquiring such distributorship, all recognitiontitles relating to any Director status shallnot automatically flow to the new owner ofany distributorship who has not personallyachieved this recognition level.

F. Commissions, Bonuses and RebatesTransferred or inherited distributorships

shall retain the right to earn commissions,bonuses and rebates related to the volume ofbusiness flowing from downline distributorshipswhich have been sponsored by the subjectdistributorship as long as that distributorshipmaintains its qualifications as establishedby the GNLD Marketing Plan.

4. PARTNERSHIPS,CORPORATIONS AND TRUST

All GNLD Distributors are independentbusiness persons engaged in the promotionof their GNLD distribution businesses.These endeavors depend upon the personaldedication, attention and commitment of

individuals who will help others to discoverthe benefits of an association with GNLD.

GNLD shall only accept DistributorApplications in the names of individuals.Applications submitted in the name ofcorporations, trusts and other legal entitieswill be rejected.

GNLD Distributors may request thattheir GNLD earnings be paid to a generalpartnership, a corporation, a trust, or anyother validly formed legal entity which theDistributor may select. Regardless of thebusiness form selected, each GNLDDistributor must be a person who has beenapproved for Distributor status, and who ispersonally responsible for the conduct ofhis/her distributorship.

A. PartnersAlthough most GNLD Distributorsoperate as sole proprietors, IndependentGNLD distributorships may be operated asgeneral partnerships conducted by two (2),or more, adults who are not married toeach other. Cohabitating domestic partnersshall be considered to be members of thesame GNLD distributorship regardless ofwhether both have signed the DistributorApplication/Agreement. (SeeDistributorships #2).

All GNLD Distributor compensation willbe awarded collectively to the partnersnamed on the Distributor Application/Agreement. Travel and meeting awardsprovided by GNLD International,will be limited to two (2) persons perpartnership. Each partner shall beresponsible for the Distributor actions ofeach of the other partners. The GNLDPolicies & Procedures are applicable to eachof the partners in the same manner theyapply to every other GNLD Distributor.”

B. RecognitionGNLD has been built through the years

on the basis of individual recognitionbecause the GNLD business is a peoplebusiness. As a result of this basic concept,the policy in regard to corporations andpartnerships will be as follows:

As an independent GNLD Distributor,you are free to form or use a corporationor fictitious name for your personal orbusiness purposes. GNLD will not acceptnew Independent Distributor Agreements

GNLD INTERNATIONAL


that show a corporation or fictitious nameas the new Distributor. Individual nameswill be used whenever recognition is given.Individual names will be used on chequesunless requested otherwise.

If, for a good reason, you wish to have yourcorporate or general partnership entity appearon cheques, please so advise yourDistributor Sales Support Associate. Insuch cases, your corporate or partnershipname will appear on your cheques, butindividual recognition will continue to beused. As a matter of policy, we will not beable to publicly recognize limitedpartnerships or corporations or any othertype of entity where private or undisclosedinvestors are involved.

C. Dissolution of General PartnershipsGNLD will recognize a partnership

dissolution upon receipt of one of thefollowing:

1 ) A signed agreement by the parties, or

2) A court order by a court havingjurisdiction over the parties.

Upon dissolution of the partnership, thewithdrawing partner relinquishes all rightsto status, title and sales team of thedistributorship and may:

1) Sign a new Independent DistributorAgreement, at no additional cost, with thesame sponsor of the partnership andcontinue as a GNLD Distributor, or

2) Remain inactive by purchasing noGNLD products other than at retail for therequired period (See Distributorships #6)and become a free agent and validly sign anew Independent Distributor Agreementwith any other Distributor. The appropriatemembership fee must accompany the newIndependent Distributor Agreement.

5. DIVORCE: WHAT HAPPENS TO THE

DISTRIBUTORSHIP?The basic policy that there can be only

one distributorship per family must still befollowed even though a divorce is pendingand the husband and wife are living apart. Therestriction against separate distributorshipsapplies until a final decree of divorce orseparate maintenance has been entered by acourt and a copy of the decree has beenfiled with GNLD.

While the divorce is pending, there are several

ways to continue running the business:

1. If one party agrees to withdraw as aDistributor, he/she may do so by executingan assignment of all his/her interest in thedistributorship to the spouse. A form for thispurpose is available from GNLD. This mustbe filed with GNLD before Distributor recordswill be changed. When the divorce decree isfinal, the withdrawing Distributor may:

a) Sign a new Independent DistributorAgreement, at no additional cost, with thesame sponsor of the joint distributorshipand continue as a GNLD Distributor, or

b) Remain inactive by purchasing noGNLD products other than at retail for therequired period (See Distributorships #6) andbecome a free agent and validly sign a newIndependent Distributor Agreement withany other Distributor. The appropriatemembership fee must accompany the newIndependent Distributor Agreement.

2. If both parties are agreeable, they maycontinue to operate the business together.

3. If the parties cannot operate under 1or 2, above, they must nevertheless ensurethat their personal differences do notadversely affect their sponsored Distributorsin the operation of their respective businesses.Thus, if they cannot agree as to the operationof their distributorship, they should makearrangements with their Sponsor or uplineDirector to carry on their business for themuntil the divorce has been completed,whereupon the party to whom the businessis awarded can resume operation. If theparties to the divorce fail to meet theirsponsorship obligations, their Distributorswill be taken from them and temporarilyassigned up the line of sponsorship to thenext qualified sponsor who is capable ofproviding sponsorship services. As long astheir sponsored Distributors are beingserviced by the parties to the divorce, allbonuses will continue to be paid in thejoint names of husband and wife.

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Often Distributors consider advertising asa means to increase the visibility of theirGNLD business. Advertising includes thefollowing among others:

� Telephone listings (both white andyellow pages)

� Business cards� Business signage� Leaflets, Newsletters, Flyers, Charts

and Posters� Web sites on the Internet� Promotional items: T-shirts, Pens, etc.� Audio and Video tapes� Newspaper advertisements� Radio and Television advertisements

The use of the GNLD name andtrademarks will normally be important toyour advertisement promoting the GNLDproducts that you distribute and the excitingbusiness opportunity that you have to offer.

We are proud of the GNLD name andtrademarks and the reputation for qualityand integrity that they represent around theworld. These trade names, trademarks andlogos are important and valuable businessassets that must be protected.

Proper use of these trade names andtrademarks by Distributors building theirbusinesses in accordance with GNLD’sPolicies and Procedures and Code ofConduct will only enhance their image.However, unauthorized or improper use ofthese marks can damage their importanceand value to the company and to all whotake pride in what they represent.

For this reason the following rules regardingadvertising and the use of GNLD tradenames and trademarks have been developed:

1. INDEPENDENT BUSINESS

While you are engaged in the business ofdistributing GNLD products, you are anindependent entity; you are not an employeeor agent. As an independent entity, you buyGNLD products from the company or yourSponsor at wholesale and sell these productsdirectly to the public and your directlysponsored Distributors.

As an independent Distributor, you shouldcarefully select your business name; it is avery important and lasting decision. Yourbusiness name should not imply that youare an employee or agent of GNLD, butshould state that you are an independentDistributor. For over four decades GNLDhas enjoyed the tremendous goodwillsurrounding its name. The name “GNLD”is known to all as the leader in the healthand nutrition industry. Our Distributorsshould use the GNLD name in theirbusiness names, but should also explaintheir independent Distributor status. Forexample:

Permissible:� John B. Smith, Authorized Distributor

for GNLD Products� John B. Smith, Independent GNLD

Distributor� Mary Smith, Authorized GNLD

Distributor� GNLD Training & Service Center, John

Smith, Distributor (If specificallyauthorized by the GNLD company)

Not Permissible:� Golden Neo-Life Diamite International� GNLD of Mississauga� GNLD Area Office� GNLD Distributing Company� GNLD — Distributors� GNLD Training & Service Center

(Unless authorized in writing by GNLD)� Acme Corporation, GNLD Distributors

2. USE OF GNLD’S TRADE NAME

AND TRADEMARKS

For over 45 years, GNLD has built a reputation for quality and integrity. Theconsistent use of the trademark “GNLD,”according to these principles, is one of themost highly valued assets of GNLD. Ourthousands of Distributors benefittremendously from the respect andgoodwill that surround the name “GNLD.”This respect and goodwill can only bemaintained if all Distributors use theGNLD name consistent with the bestprinciples of quality and accuracy. Any misuse of the GNLD name diminishesthe goodwill of the name “GNLD” and hurts

C. ADVERTISING

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all Distributors. Any Distributors wishingto associate themselves with GNLD byusing or producing the following mustobtain prior written approval:

a) The name “GNLD”

b) Trademarks, trade name, service marksand copyrighted works of GNLD;

c) Voices, pictures and likenesses of GNLDCorporation employees, representatives andendorsement personalities;

d) Product descriptions and claims forGNLD products;

e) The procurement or production ofpromotional merchandise and prizes, anykind of promotional literature, stationerywhich carries the GNLD name, logo,trademarks or trade name;

f ) Any mass media advertising that usesthe name of GNLD products;

g) All GNLD copyrighted material to bereproduced in its entirety or partially.

When Distributors use the GNLD tradename or trademarks in conjunction withdisplays at fairs, home shows and conventions,the displays should uphold the quality ofthe GNLD trade name. Any public display,exhibition or sale of GNLD productsshould be approved by the company, basedon the written submission of details,sketches and plans.

As an independent Distributor, you arefree to hold any meeting, and sell anyproducts or services, but the GNLD tradename may not be used to promote the sale orpromotion of non-GNLD services orproducts. At all meetings, Distributors whouse the goodwill of the GNLD trade namemay not use the sales meeting for thepurpose of promoting or selling non-GNLD products. It would be unfair to thecompany, and its Distributors andcustomers for the GNLD trade name to beused to publicize or promote othercompanies or products.

3. TELEPHONE DIRECTORY

Our over 45 years of success in the directsales, health and nutrition industry haveshown that correctly and accurately writtentelephone advertisements are a key featurein finding new customers and recruitingnew Distributors. In light of the above

trade name policies and the teachings ofexperience, the following are telephonedirectory advertisement policies:

A. White PagesBy listing in the white pages alphabetically

by the Distributor’s name followed by“GNLD Distributor,” friends, relatives andbusiness associates will be constantlyreminded that you are a GNLDDistributor. Experience has shown that thebest white pages alphabetical listing is asfollows: “Jones, Mary, GNLD Distributor.”

In addition to the alphabetical listing bythe Distributor’s name, Distributors areencouraged to list under the trade name“GNLD Distributor.” This listing will beplaced in the “G” section of the white pages,and all Distributors can list below the tradename listing. The telephone company mustbe advised by the first Distributor to listthat the GNLD Distributor listing is an“alphabetical boldface heading” under whichany GNLD Distributor may list his/heraddress and telephone number. There willbe an additional charge for this listing, andeach Distributor who is listed in the whitepages under “GNLD Distributors” shouldshare equally in the charge. Arrangementscan be made with the telephone bills ofparticipating Distributors.

B. Yellow PagesYellow page listings have proven to be

more advantageous than white page listings.

All GNLD Distributors are encouragedto list their business telephone in the yellowpages under their name provided it is listedin the same manner as the “alphabeticallisting” previously explained above in thewhite pages section. This yellow page listingshould be inserted under any or all of thefollowing categories:

1. Vitamins

2. Cosmetics

3. Health foods

4. Cleaning products

GNLD INTERNATIONAL


It is suggested that Distributors also list under the trade name listing “GNLDDistributors.” This listing should be placedunder any or all of the following categories:

1. Vitamins

2. Cosmetics

3. Health foods

4. Cleaning products

As noted in the white pages explanation,there will be an additional charge, andDistributors who list in the yellow pagesshould share this charge.

The artwork for a trade name listing will beprovided by GNLD upon request and onlyauthorized artwork may be used in theseyellow page trade name listings. Distributorsshould contact their Distributor ServicesRepresentative for authorized artwork.

Distributors with current yellow pagelistings must notify the telephone companyof the above changes.

Listings which do not meet these policiesmust be deleted from telephone directories inthe next published directory for each location.

4. STORE SALES AND DISPLAYS

The sale or display of GNLD products, orsigns advertising these products, is prohibitedin any retail store or outlet serving the generalpublic.

An exception to this rule will be grantedto those establishments which are:

a) Places of business engaged in servicesby appointment, such as beauty salons, etc.In no event, however, may signs or displaysadvertising the sale of GNLD products bedisplayed in such a manner that they arevisible from the street and designed to enticepeople from the street for the purpose ofretail sales.

b) Private membership clubs, such as healthspas, etc. This rule shall not prevent a storeowner from being a GNLD Distributor, buta store owner must adhere to all the samePolicies and Procedures that guide all GNLDDistributors.

5. GNLD TRAINING AND SERVICE CENTRES

GNLD training and service centres maybe considered if your business has becometoo big to handle from your home. To opena GNLD Training and Service Centre, anapplication in writing must be made toGNLD on application forms supplied bythe company.

6. GNLD DISTRIBUTOR WEB SITES

Personal contact and relationshipbuilding are absolutely essential to thenetwork marketing focus of the GNLDInternational marketing plan.

The Internet has become an importantand viable method of supporting theGNLD International distribution system.GNLD International authorizes andencourages Distributors to develop andoperate their own Web Sites as tools toexpand and to manage their independentdistributorships.

The following policies are designed toensure that GNLD Distributors enjoy thebenefits of the information technologypresented by the Internet, and that theyrespect the rights of each other and of theCompany.

Utilization1. GNLD Distributors shall conduct

their distributorship businesses inaccordance with the GNLD InternationalPolicies & Procedures, and shall conformtheir use of the Internet and Web Sites tothis Policy.

2. GNLD International reserves the rightto review, approve and/or reject all newDistributor Applications, and shall notdelegate that right to any Distributor. AllGNLD Distributor Applications must beproperly signed and processed according tothe GNLD International Policies &Procedures and internal companyprocedures.

3. GNLD Distributors shall comply withlocal, provincial and federal laws andregulations in the operation of theirdistributorships through all electronicmeans, including the Internet, the WorldWide Web and the various e-mail systemscurrently available for business exploitation.

4. GNLD Distributors shall refrain from“Spamming.” “Spamming” is defined as thesending of multiple copies of the same

GNLD INTERNATIONAL


message in an attempt to electronicallycommunicate with persons who have notexpressed a desire to receive unsolicited e-mail.

5. Distributors conducting business inmore than one country via their Web Sitesshall comply with applicable laws andregulations, including consumer privacyregulations, of the countries in which theDistributor conducts his/her business.

Identification6. GNLD Distributor Web Site Domain

Names (URL) shall not include GNLDInternational’s company name, servicemarks, trademarks, product names or anyaddress component which may beconfusingly similar to those names andmarks. Company names, service marks,trademarks and product names are reservedto GNLD International for the benefit ofall GNLD Distributors.

7. GNLD Distributor Web Sites andhome pages shall clearly and prominentlyindicate on the first screen image displayedto the site visitor that the Web Site or URLbelongs to an “INDEPENDENT GNLDINTERNATIONAL DISTRIBUTOR”who will be identified by name.

Content & Format8. It is recommended that GNLD

Distributor Web Sites link to the GNLDInternational official Home page or to anyWeb Site established by GNLDInternational .

9. GNLD Distributor Web Sites maydisplay product and business testimonialsand endorsements provided that writtenpermission for Internet publication hasbeen granted by the person being quoted.Testimonial representations must beverifiable, and in all respects compliantwith the GNLD International Policies &Procedures. Unauthorized product claimsshall not be displayed.

10. GNLD Distributors may developaudio and video recordings for publicationon their Web Sites provided that writtenpermission for Internet publication hasbeen granted by all participants and therecordings are in all respects compliantwith the GNLD International Policies &Procedures, and all applicable regulationsand laws of the jurisdiction in which the

Distributor is located.

11. GNLD Distributor Web Sites maypresent the GNLD Internationalopportunity and GNLD Marketing Plan.The opportunity shall be presented as anetworking business which enjoys successthrough the sale of superior products byindependent Distributor sales teams. Thereshall be no representation or implicationthat there is any opportunity strictly fromrecruiting of others into the GNLDbusiness.

12. GNLD Distributor Web Sites maylink to other Web Sites (“destination sites”)for the purpose of promoting GNLDproducts and business. Links to destinationsites must be authorized in writing by theowner of the destination site. Destinationsites must be in compliance with this Policyand may be reviewed by GNLDInternational.

13. GNLD Distributor Web Sites shallnot display, nor refer to, nor link to, nor beconnected to any religious or politicalorganization, competing businessopportunity, or promoter of “non-GNLD”products. GNLD Distributor Web Sitesshall in no way detract from or denigrateGNLD International’s trade names,trademarks, products, or reputation.

14. GNLD Distributor Web Sites shallnot display, promote, market, advertise, orsell non-GNLD products or services.

15. GNLD Distributors may publishadvertisements on their own GNLDbusiness Web Sites, and may advertise onother Web Sites provided that theadvertisements and Web Sites do notdisplay, nor refer to, nor link to, nor discussor promote any religious or politicalorganization, or “non-GNLD” businessopportunity, or products.

16. GNLD Distributor Web Sites may beregistered on and linked from Internetsearch engines.

17. GNLD Distributor Web Sites shalldisplay an appropriate “Privacy Statement.”Such a statement will be provided byGNLD International upon request. ThePrivacy Statement will inform consumerswhether or not personal information isbeing collected, and how such informationmay be used. Consumers shall be provided

GNLD INTERNATIONAL


an opportunity to prohibit disseminationof their private information. GNLDDistributors must protect personalinformation according to the expresseddesires of consumers.

18. GNLD Distributor Web Sites shall beroutinely updated to reflect current GNLDproduct developments and marketingmaterials. Web Site modifications andcorrections must be accomplished withinsixty days of notice from GNLDInternational.

Intellectual Property19. GNLD International trademarks,

copyrighted materials, illustrations andphotographs may be displayed on a GNLDDistributor Web Site provided that theWeb Site conforms to these Policies &Procedures in all respects.

20. GNLD Distributor Web Sites maydisplay current GNLD-produced video andaudio materials that are sold by thecompany. Recordings of GNLDInternational broadcasts, conference calls,or similar communications by the companymay not be published without prior writtenconsent of GNLD International.

21. GNLD Distributor Web Sites maydisplay current GNLD-produced literatureand images that are adapted from currentGNLD International materials, providedthat the materials may not be edited orhave text added or omitted.

Product Sales through the Internet22. GNLD Distributors may expand,

support and enhance their sales of GNLDproducts through on-line sales. Theproduct sales portion of a GNLDDistributor Web Site must be Passwordprotected to ensure that only invitedindividuals will access that portion.

23. Password pages may only displayinformation needed for access and briefintroductory messages to confirm that aviewer has reached the correct site.Password pages may not display DistributorID numbers or passwords that would allowcasual visitors to access the product salesportion of the site.

24. GNLD Distributors may give accesspasswords to prospective customers for trialaccess only in personal contactcircumstances

Regulatory25. GNLD Distributors shall not offer

payment of fees in any form (includingbonuses, referral fees or rebates) for therecruitment or solicitation of Distributorsor for the entry of Distributors into theGNLD business.

26. GNLD Distributor Web Sites shallnot require any purchase by applicants.Unaltered GNLD International“Distributor kits” may be promoted as areasonable business beginning.

27. GNLD Distributor Web Sites shallcontain only information which is truthfuland not misleading.

28. GNLD Distributor Web Sites shallnot publish unauthorized health claims.GNLD dietary supplements shall not berepresented to diagnose, mitigate, treat,cure, relieve or prevent any disease, ailmentor physical condition. GNLD dietarysupplements shall be promoted solely fornutritional and dietary purposes, and notfor medical purposes. GNLD dietarysupplements are foods, not drugs.

29. GNLD Distributor Web Sitesdisplaying statements of nutritionalsupport should prominently display in boldtype for each such statement, the following:“This statement has not been evaluated bythe Food and Drug Administration. Thisproduct is not intended to diagnose, treat,cure or prevent any disease.”

30. GNLD Distributor Web Sites whichpublish recommendations of product usemust display only those recommendationswhich are consistent with instructionsindicated on the labels of GNLD products.

Review31. GNLD International reserves the

right to review GNLD Distributor Internetbusiness practices and Web Sites, and totake action necessary to support this Policy.

GNLD INTERNATIONAL


1. THE GNLD GUARANTEE

GNLD products are simply the bestproducts available anywhere. GNLD isdedicated to producing the best products onthe market today. Each is developed to thehighest quality standards. GNLD combinesthe latest product science and technologywith the highest quality ingredients toproduce products that are superior in everyway. GNLD offers a 100% money-backconsumer guarantee, no questions asked. Ifyou find any product to be defective or belowthe standards expected, return it to GNLDfor exchange or full refund. As a Distributoryou should offer your customers a choice ofreplacement without charge, full credit towardthe purchase of another GNLD product, ora refund of the full purchase price.

If you receive a product back from thecustomer, just return the unused portion toGNLD, with your name, address, ID number,a copy of the retail sales receipt and anexplanation as to why it was returned. We willship you a replacement of the same product.

The GNLD Guarantee is a seriousexpression of product confidence existingbetween the customer, Distributor andcompany. As in any mutual agreementinvolving financial considerations, eachparty accepts certain responsibilities and isexpected to live up to them in good faith. Theguarantee does not apply to damage causedby accident, misuse, abuse or alteration. Theproduct must have been used from the originalcontainer and according to label directions.

2. EXCHANGE OF PRODUCT/INVENTORY

IMBALANCE

It is not the policy of GNLD to sell largequantities of product directly to newDistributors before they have demonstratedan ability to sell it successfully. Exchanges areunnecessary if this policy is followed. Withina 90-day period after signing a DistributorAgreement, the Sponsor should, if requested,buy back or exchange any product thathis/her Distributor cannot sell, if the productis in a saleable condition.

Because commissions and bonuses havebeen paid on the product, it is company

policy that such requests be forwarded tothe appropriate Sponsor or upline Director.Product sent to an upline Director or Sponsorfor exchange must be sent freight prepaidby the person requesting the transaction. Inaddition, to offset expenses incurred by theSponsor, it is fair and right that a handlingcharge equal to 10% of the BV value of thereturned or exchanged product be chargedto the Distributor requesting the exchange.

Here are the procedures for Sponsors tofollow:

a) Determine that the product is saleable.

b) Determine that the product has notexceeded the one-year guarantee date.

c) The Sponsor should make the exchangefrom product on hand.

3. REPURCHASE POLICY

When GNLD created the RepurchasePolicy, it was with the intent that it be usedonly as a means of repurchasing productfrom a Distributor who wishes to terminatehis/her business relationship with thecompany. This policy should never be usedas a “no-risk” enticement for bringing anew Distributor into the GNLD business.

In the event that an active GNLDDistributor wishes to terminate his/herbusiness relationship with the company,the following guidelines apply:

� The terminating Distributor may returnall unopened product which they havepurchased from their upline Sponsor ordirectly from the company to GNLD forrepurchase. Only products that are receivedback within one (1) year from date ofpurchase in marketable condition will beconsidered repurchasable by GNLD. Thisproduct will be repurchased at 90% of theprice originally paid by the terminatingDistributor, less all bonuses, commissions,rebates, awards and overrides received onthat inventory by the terminatingDistributor. Verifiable proof of purchaseor product date codes on labels will beused to determine if products qualify forrepurchase.

� In addition, all bonuses, commissions,

D. PRODUCTS

GNLD INTERNATIONAL


rebates, awards and overrides paid toupline Distributors as a result of theoriginal sale will be recovered from theupline Distributors whenever a productrepurchase takes place within their salesorganization.

� Finally, all qualifications awarded as aresult of the original purchase will berevoked.

4. LOANS

Distributors should make all productpurchases from the company or their Sponsorsonly. Product may only be borrowed or loanedin the vertical sponsorship line. Repaymentmust be made in products. Product may notbe loaned or borrowed outside the verticalsponsorship line. To sell product wholesale orreceive cash from a Distributor not personallysponsored violates these Policies andProcedures and is not permissible. The onlyexception to the above would be as specifiedin a written agreement between theconcerned parties.

5. PRODUCTS AND THEIR INTENDED USES

Each GNLD product is formulated anddesigned to provide superior performanceand benefit when used in the recommendedmanner. In order to build Distributorknowledge and support successful productsales, such uses are described in officialcompany printed materials including productlabels, the Distributor Business Guide,brochures, flyers and periodical publications.

Though many GNLD products may provebeneficial in applications other than those onthe label or in printed materials, no GNLDproduct should be used in a manner otherthan expressly described on the currentproduct label or in current official companyprinted material for that product in thatcountry.

Because GNLD products are designed andformulated to support a healthy lifestylethey provide important benefits to the user.However, no GNLD product is intended tocure or treat any disease or condition, exceptthose intended uses contained on the currentproduct label or in current official companyprinted materials for that specific product.

By acquiring knowledge associated withGNLD products you may become lookedupon as an authority figure. It is importantto remember, however, that no GNLDDistributor who is not a licensed health

care practitioner is authorized to diagnoseillness or prescribe treatment.

6. REPACKAGING GNLD PRODUCTS

Under no conditions may a GNLDDistributor repackage GNLD products.The labeling laws of the federal agenciesexpressly forbid this. The GNLD guaranteeand product liability insurance are voidedif repackaging occurs; as an IndependentDistributor, you are then left unprotected.

7. LITERATURE CHANGES

As a word of caution, literature containingany kind of pricing information should beordered with discretion.

Due to the rapidly changing nature of thepersonal care, home care and nutritionindustries, GNLD literature is often updatedto reflect the “state-of-the-science,” as wellas current legislative requirements. However,there is no provision for the exchange ofliterature and existing literature may be usedup. We recommend that you cease distributingany literature or audiovisual sales aid that ismore than three years old and is no longercurrently published by GNLD. Watch yourGNLD News for notification of changes inliterature and introductions of new salestools.

8. EXCLUSIVE GNLD SALES

The intention of this policy is to protectthe integrity of the sales team of GNLDDistributors from other GNLD Distributorssoliciting them to sell non-GNLD products.

You must be a registered Distributor withGNLD to be authorized to sell or distributeGNLD products.

It is recommended that GNLD Distributorssell and promote only GNLD goods andopportunities. More success can be generatedthrough concentrating one’s effort, resources,education, etc. on GNLD product linesrather than diversifying. Other productsmay be sold to customers or to your directDistributors only. You are strictly prohibitedfrom soliciting GNLD Distributors who arenot directly sponsored by you to purchase orsell other products or marketing opportunities.Violation of this policy could result intermination of your distributorship.

GNLD INTERNATIONAL


GNLD INTERNATIONAL


When it comes to a Distributor’s attentionthat there has been a violation of the Policiesand Procedures or Code of Conduct byanother Distributor, an informal discussionshould take place in an attempt to correctthe problem as easily and quickly as possible.The Distributor should be shown theapplicable section in the Policies andProcedures and/or Code of Conduct, andthe reason for the rule should be explained,including why violation of the rule acts tothe disadvantage of all Distributors. It shouldbe requested that the Distributor complystrictly with all rules as outlined in thePolicies and Procedures and the Code ofConduct. If this discussion fails to lead to thecorrection of the violation, the complainingDistributor should then report the violationto their own upline Director. The uplineDirector should then attempt to contact theupline Director of the violating Distributorto discuss the alleged violation. The uplineDirector of the violating Distributor shouldthen counsel with the violating Distributorand attempt to secure his/her cooperation incorrecting the situation. If the upline Directorscannot reach compliance with the Policiesand Procedures, the upline Director of thecomplaining Distributor should send awarning letter by certified mail to theviolating Distributor, with a copy to his/herupline Director, advising the violatingDistributor of the specific complaint(s) madeagainst him/her, and giving the Distributora reasonable, but definite, time limit withinwhich to comply with the rule(s).

CENSURE OR CANCELLATION

GNLD’s Policies and Procedures havebeen carefully written to protect customers,Distributors, Sponsors and the company.GNLD Distributors have agreed to abideby such written Policies and Procedures andhave the responsibility of maintaining thehonesty and integrity of the Marketing Plan.Violation of published Policies and Proceduresand Code of Conduct may lead to censureor cancellation.

Censure is disciplinary action imposedon a Distributor who violates Policies andProcedures when it is hoped that said

Distributor will take appropriate correctiveaction. Censure is an alternative tocancellation. Censure may, at the discretionof the company, also include any of thefollowing: withholding bonuses andrecognition, writing corrective letters tosponsored Distributors, withholding allcontest benefits, prizes, and may requireattendance at training meetings presented bycompany personnel or a Director. Censurewill be for a period to be determined byGNLD. If the violation of the policies is notcorrected during the censure period, GNLDwill cancel the Distributor’s membership.

Cancellation is the permanent revocationof a Distributor’s right to sell GNLD, tosponsor Distributors and to receive otherbenefits of being a GNLD Distributor.

Censure or Cancellation With FormalComplaint

If there is no satisfactory compliance withinthe time limit specified, the upline Directorshould send all information, copies of letters,etc. to GNLD, along with a request forcancellation or corrective action. GNLDwill conduct its own investigation anddecide on censure or cancellation. Ifcancellation or censure is deemed necessary,GNLD will notify the violating Distributorby registered letter, return receipt requested.

Censure or Cancellation Without FormalComplaint

GNLD may initiate censure or cancellationinvestigations and proceedings even withoutformal complaint. GNLD will not censure orcancel a Distributor without first completelyinvestigating the matter and allowing theDistributor a reasonable chance to respond,explain or justify.

Appeal of Censure or Cancellation ofDistributorship:

The Censured or Cancelled distributorshall have the right to appeal a Censure orCancellation decision. All appeals must befiled in writing within 15 days of GNLD’sdecision to Censure or Cancel adistributorship.

E. RESOLVING POLICY VIOLATIONS

1. WHO CAN ORDER?As a Member registered with GNLD

International, you may place orders withyour upline sponsor. Your sponsor willmaintain all order records andcommunication.

As a Distributor registered with GNLDInternational, you may continue to orderproducts through your upline sponsor oryou may choose to place orders for productand literature directly with GNLD. Simplycontact the Corporate office where anaccount has been established in ourcomputer files for you. This accountaccumulates Point Volume (PV) and BonusVolume (BV) for orders you place directlywith GNLD throughout each Sales Month.Your account also reflects the total amountdue and payments related to each order.

2. HOW TO PAY FOR ORDERS

Orders are processed within 24 hoursupon receipt of one of the followingpayment options:

� Credit Card — We accept Visa orMastercard

� Certified Money Order or authorizedcheque

� Traveler’s cheque (made payable toGNLD International)

� Cash — It is not recommended thatcash be mailed.

� Debit — Pick up orders at the HomeOffice only.

Tip: Credit card purchases are the quickestand most convenient way to pay for orders,and assures the most efficient and timelydelivery of your orders! Also, certain airlinecompanies offer Visa and Mastercardaccounts that provide mileage credit whenyou make purchases using the card.

Tip: You can use an unlimited number ofcredit cards (Visa or Mastercard) to pay foryour order(s). Simply tell the person takingyour order how much to charge to eachcredit card.

3. SUGGESTED MEMBER PRICE ORDERING

Member Price (SMP) is the suggestedprice to be charged for GNLD products toany Member Distributor purchasing fromtheir sponsor. The SMP is listed on theGNLD price list under the Singles columnand represents a discount of approximately15% from GNLD’s Suggested Retail Price.

4. DISTRIBUTOR COST ORDERING

Distributor Cost (DC) is the wholesale costof GNLD products which can be purchasedby registered Distributors directly fromGNLD. The DC cost is available whenpurchasing single items, which represents a25% discount off the Suggested Retail Price.To maximize your profit you may purchaseby case and receive an additional 6-8%discount off the Suggested Retail Price.

5. ORDERING BUSINESS LITERATURE

All literature should be purchased withdiscretion. GNLD is committed to offeringhigh quality business literature andinformative audio and video business tools.The marketing team at GNLD alwaysstrives to reflect new research and marketinginformation in all of our sales tools.Although every attempt is made to keepchanges to a minimum, there will beoccasions when price lists, catalogues andother business tools will need to be revised.Plan your literature needs carefully as therewill be no exchanges made.

GNLD INTERNATIONAL


F. THE BASICS OF ORDERING

ORDERING ON THE INTERNET

When it comes to ordering convenience,you can’t beat our Web site! Because theWeb is open 24/7, you can place yourorders anytime, any day — and you’realways first in line. Simply go towww.gnld.com, click on “DistributorOnly.” Key in your Distributor ID# andPIN. Click “Orders,” then “Order Entry.”

Here are the things you need to knowwhen placing online orders:

� Enter your email address to receive adirect order confirmation. Choosedelivery or pick up, and select “Next” to start your ordering process.

� If you know the products and/orbusiness-building tools you want, simplyenter the item numbers. The productdescription, volume amounts and priceswill immediately appear once you selectclick. Be sure to select a quantity, thenclick “Add to cart.”

� If you don’t know the item number,select “Look up” for a full list of productcategories. Select a category and choosethe items you’d like to order.

� After you’ve added all of your productand business-building tools to yourshopping cart, click “$Checkout.” Thesystem will calculate any freight and/orsales taxes, and then take you to theCheck out page.

� Select print to obtain a hard copy ofyour order for your records, and click“Submit” to place your GNLD order.

� At any time during the ordering process,you can cancel your order or select“Help” for assistance.

GNLD.com is an approved VeriSignsecure site. All information is confidentialand exclusive to Distributor Sales Supportand your GNLD business.

ORDERING BY TELEPHONE

GNLD has a local number as well as an800 number for placing orders. Thenumbers are (905) 890-7120 or (800) 361-5591. GNLD does not accept collect calls.

Here are the things you need to knowwhen placing a telephone order:

� If you are ordering for the first time,please let your Distributor ServicesAssociate know. We are happy to assistyou and want to make ordering withGNLD simple and fun.

� Have the Identification Number andname of the Distributor requesting theorder ready. This is the Distributor whowill receive full PV/BV credit for the order.

� Have the correct name, address andtelephone number of the person towhom the order is being shipped ready.This must include the ID number ifshipping to another Distributor. GNLDcannot ship to a Post Office box.

� Have the entire order written out andtotaled on a Distributor Order Form(#8210) ahead of time. The DistributorServices Associate will read the order backto verify items, quantities and PV. Ifthere are any discrepancies, inform theDistributor Services Associateimmediately. Once the order has beenshipped, GNLD CANNOT cancel theorder, since all commissions andrecognition have been based on thatvolume.

� You may simply use your primary creditcard listed in GNLD’s ordering systemor have a new credit card number andexpiration date available.

� Upon completion of your order, you willreceive a shipping invoice number whichshould be written on your DistributorOrder Form for future reference, if needed.

� Do not mail a copy of your order if it hasbeen telephoned to us. This will causeus to process the order twice, creatinga duplicate shipment and a duplicatecharge on your credit card. During the

GNLD INTERNATIONAL


G. HOW TO PLACE AN ORDER

WITH GNLD

GNLD INTERNATIONAL


processing of an order, it is not possibleto identify a duplicate order that mayhave been entered previously. GNLDcannot cancel the duplicate order, sinceall commissions and recognition havebeen based on that volume.

ORDERING BY FAXWhile the Internet ordering system is the

simplest way to place an order, GNLD alsohas a FAX line for accepting applications andorders 24 hours a day. The number to submitdocuments by FAX is (905) 890-9737.

Here are the things you need to knowwhen placing orders by FAX:

� Only payment by credit card will beaccepted by GNLD’s FAX system.

� Before you send your orders, complete aFAX cover sheet with Distributor’s name,phone number, ID number, number oftotal pages being sent, and the totaldollar and PV amounts of the ordersbeing sent. It is important to include aphone number so you can be notified ofany transmission problems.

� GNLD’s FAX system will only accept onetransmittal at a time. If the line is busy,wait a few minutes and try yourtransmission again.

� Always keep your transmission receiptsfor your own records — this is yourconfirmation that your orders werereceived at GNLD. Be sure to check yourtransmission record for correct phonenumber and the correct number of pages.

Do not mail in a copy or an original of your order if it has been FAXed to us.This will cause us to process the order twice,creating a duplicate charge on your creditcard. We have no way of identifying anorder that has already been processed by FAX.If this should occur, GNLD cannot cancelthe duplicate order since all commissionsand recognition are based on that volume.

You can confirm that your order wasplaced by calling GNLD’s DistributorServices at (800) 361-5591 or (905) 890-7120.

Tip: If you are concerned about your FAX

being received and processed, you cansimply access the “order inquiry” optionavailable through www.gnld.com, or callDistributor Services.

ORDERING BY MAIL

Distributors who may not have access toa credit card may consider mailing inapplications and orders. Because thismethod may not be as convenient orreliable as direct telephone ordering,GNLD has developed a “hold status”system for mail-in orders. By allowing alldistributors to simply call our toll-freeorder line, they can place their order with aGNLD Associate and receive exact totals ofPV/BV and order amount. The order isthen placed on hold status in the computersystem and the Distributor is given aninvoice number which should be writtenon the money order or cheque being sentto the office.

To simplify your mail-in order, use thefollowing steps to place a “hold status” order:

� Complete the Distributor Order Form(#8210), and include your name,address, ID Number, and the addresswhere the order is to be shipped.

� Call GNLD’s toll free order processingnumber at (800) 361-5591 or (905) 890-7120, and place your order.Verify the PV/BV and total amount duewith the Associate. You will then receiveyour invoice number and your order willbe placed “on hold” until GNLDreceives your payment.

� Send in your payment with a list of theinvoice number(s) for which payment isbeing made.

� You do not need to mail in your order,Simply mail your payment to: GNLDInternational, 3-400 Britannia Rd. E.Mississauga, ON L4Z 1X9.

� Upon receipt of your payment, GNLDwill immediately process your order onhold and you will be credited the PV/BVaccordingly.

Tip: Orders will be credited to yourdistributor account for the month inwhich payment is received.

To send in your order or application withpayment:

� Complete the Distributor Order Form(#8210), and include your name,address, ID Number, and the addresswhere the order is to be shipped.

� When paying by credit card, include thecredit card number and expiration date.If you are using multiple cards, indicate

GNLD INTERNATIONAL


the amount to be charged to each card.� Mail your order form or application and

payment to: GNLD International, 3-400 Britannia Rd. E. Mississauga, ONL4Z 1X9.

Tip: See accounting policies for specialend-of-month procedures.

ORDERING A DROP SHIPMENT TO YOUR

MEMBER OR RETAIL CUSTOMER USING THEIR

CREDIT CARD FOR MEMBER RETAIL PRICE

PAYMENTS:You can place an order on behalf of your

Member Distributor charging the Memberprice to their credit card. The differencefrom your single or case Distributor Cost andMember price charged to the credit card willcreate an overpayment which will bereimbursed back to you as part of yourmonthly bonus cheque.

H. SHIPPING POLICIES

GOLDEN NEO-LIFE DIAMITE INTERNATIONAL


1. WHERE DOES GNLD CANADA SHIP?GNLD Canada ships within Canada,

including the Northwest Territories.

GNLD also supports additionalindependent locations throughout NorthAmerica. GNLD Canada ships within thecountry of Canada. GNLD Jamaica shipswithin the country of Jamaica. GNLDTrinidad ships within the country of Trinidadand Tobago. GNLD Barbados ships withinthe country of Barbados. GNLD Mexicoships within the country of Mexico.

2. CAN I ORDER CASES OR SINGLES?GNLD will ship case lots or singles to you,your Distributors, or your customers. GNLDdoes NOT combine singles of one item withother similar items to make a case. Forexample, you cannot mix single flavors ofNourishake® to make a case of six.

3. SHIPPING/DELIVERY TIME

Our warehouse is located in Mississauga.All orders are shipped via common carrier.

4. FREIGHT/HANDLING CHARGES

For orders shipped in Canada, GNLDcharges freight according to the total PV ofyour order. To calculate freight in marketsoutside Canada, refer to the country’sConfidential Price List or local businessmanual.

Atlantic provinces are charged an extra$10 on orders over 1,000 PV. NorthwestTerritories, Nunavut and Yukon may incurextra shipping charges.

5. DROP-SHIPMENTS

You can place an order, no matter howbig or small, to be sent directly from GNLDto your Distributor or customer. This isextremely helpful in that you don’t need to

keep a large inventory on hand. Freight/handling charges will still apply accordingto the amount of PV. You cannot combineorders to reduce freight charges and thendrop-ship to various addresses.

6. TRACKING LATE ORDERS:GNLD takes pride in shipping all orders

promptly. Order early in the day and in mostcases your order will be shipped that sameday. Significantly higher ordering activityoccurs during the last two days of themonth, and even then, most orders areshipped no later than the next day. If youhave not received your order on or before thesixth (6) working day, go to www.gnld.comor contact Distributor Sales Support forimmediate tracking. Distributor SalesSupport will assist you in locating andexpediting the order.

7. COMMON CARRIER DELIVERIES

Here are some general guidelines:

� The carrier will make two additionalattempts to deliver your order if theyare unable to reach you the first time,and will leave a note to advise you thatthey have a package for you.

� After three attempts have been made, the carrier will return your merchandiseto GNLD.

� When a package is returned to GNLD,and a request is made by the Distributorfor reshipment, a freight charge will beassessed on the second shipment. Thismay also apply when a Distributor doesnot inform us of a change of address andthe order is undeliverable.

� The carrier will, on some occasions,leave a package with a neighbour if youare not home, although more often theywill follow the procedure outlined above.We suggest you leave a note instructingthe carrier where to leave your package ifyou will not be home to sign for it.

� All orders that are filled and processed atGNLD are checked with great care.Should you discover a discrepancy,please re-check your order carefullybefore calling the office. Should youfind an error, please give Distributor

GNLD INTERNATIONAL

FREIGHT & HANDLING CHARGES

Amount of Order: Freight Charges:0 - 199PV 3% of DC

(+ $4.00 handling charge)

200 - 999PV 3% of DC

1,000 PV and up Shipped Freight Free

GNLD INTERNATIONAL


Services the order number and orderdate to facilitate prompt order tracking.

� As you receive any package delivered bythe carrier, please check for damage to theouter packaging before signing for it.Any damages, such as the package beingcrushed, resealed or open, should be notedby the delivery person on the deliveryrecord, especially if there are any missingpackages.

� GNLD cannot make deliveries to PostOffice boxes.

8. SHORT OR DAMAGED SHIPMENTS

Always be sure to carefully count thenumber of pieces of freight delivered bytransport carriers. Never sign a bill of ladingunless you are absolutely certain that all ofthe pieces of freight on that bill of ladinghave actually been delivered. When signinga delivery receipt, a Distributor relieves thetransport carrier of all further responsibility.GNLD cannot be responsible for shortageson an order when a Distributor hasimproperly signed for it.

When transport carriers sign for a shipmentat GNLD, they sign for a given number ofpieces of freight and they acknowledge thisfact. GNLD’s control over the shipment endsat that time and is assumed by the carrier.

Great care is exercised by GNLD inpackaging, handling and shipping product.Still, unavoidable accidents or carelesshandling by others will sometimes occur.Be assured that the product was in goodcondition when it left our warehouse.

Shipments that show damage on arrivalshould be handled as follows:

Common Carrier

� A distributor should always accept theshipment, but should list damaged items.Have the delivery agent note the damage onthe delivery record. Notify the DistributorServices Department and the carrierimmediately of the extent of the damage.

� The Distributor should immediatelyrequest an inspection by the carrier, whowill assign a Lost or DamageInvestigation (LDI) number.

� Be sure all damaged items, plus theshipping containers, are held for pickupby the carrier. Go ahead and useundamaged merchandise for regular sales.

GNLD INTERNATIONAL


1. END OF MONTH (EOM) PROCEDURES; RECEIVING CREDIT FOR YOUR ORDER,APPLICATION OR PV/BV TRANSFER:

To ensure that all orders are credited tothe right month so that all Distributorsreceive the recognition and achievementlevels they are working toward, GNLD hasestablished certain guidelines:

All orders, payments, PV/BV transfers,and applications physically received at theHome Office by Monday throughThursday 5:00 p.m. and Friday 4:00 p.m.on the last business day of the month willbe processed for the current sales month.“End-of-Month” usually occurs on the lastday of the calendar month, However, ifthat day is a weekend or holiday, “End-Of-Month” will be on the next business day(business days are considered Mondaythrough Friday). GNLD publishes the“End-Of-Month” schedule in the GNLDNews. Distributor Services also maintainsGNLD’s annual “End-Of-Month”schedule, contact Distributor Services ifyou need additional information.

If you want an order to be credited forthe following sales month, you must state,“For (month name) Sales Month,” in boldprint across the front of the order withseparate payment for each month’s orders.Note: GNLD’s order processing computer isunable to accept any orders for a future salesmonth until the first day following the closeof the previous sales month.

USING OVERNIGHT CARRIER DELIVERY SERVICE:It is extremely important that we receive

all new Distributor Agreements, orders,payments and PV/BV transfers by “End-of-Month.” If time is short, werecommend you Overnight Express yourdocuments the day prior to “End-Of-Month.” Only those orders sent by anauthorized agency who provides guaranteednext-day delivery will insure that yourorder arrives in our Corporate Office onthe final end-of-month processing day.GNLD takes no responsibility if theovernight carrier does not deliver thepackage on time in order to be processedwith the current month’s business.

2. TELEPHONE, FAX, OR INTERNET

AT END OF MONTH:On the last day of the sales month,

Distributor Services Associates are standingby — from 9:00 a.m. to 5:00 p.m. Mondayto Thursday and 9:00 a.m. - 4:00 p.m.Friday. You also have the option of faxingorders on the last day of the sales month aswell as GNLD’s order online 24 hours a dayat www.gnld.com. All end of month ordersneed to be processed before 12am(midnight) for end of month credit.

DECLINED CREDIT CARD ORDERS

AT END OF MONTH:If the credit card being used is declined,

GNLD considers it to be a “non-order”ornon-application, it will be returned back tothe ordering/sponsoring Distributor by the10th of the following sales month forresolution. (To avoid having your orderheld, verify the credit card’s available balanceprior to placing your order. The cardholdercan do this simply by calling the toll-freenumber on their credit card.)

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I. ACCOUNTING POLICIES

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1. KEEPING ACCURATE BUSINESS RECORDS

As an independent GNLD Distributor,you are in charge of your own business. Itis essential to establish good bookkeepinghabits and keep good records as soon asyou begin your GNLD business. By thetime you become a Director and areearning higher income, you will haveestablished good record-keeping habits andwill not run into difficulties when yourannual taxes must be calculated.

Revenue Canada places responsibility on thetaxpayer to provide proper supportingdocumentation for all expenses claimed.Proper documentation includes a receiptfrom the party to whom the payment hasbeen made and a statement of what thepayment is for.

In order to claim an item as a businessexpense, you must be able to show that theexpense was reasonable, necessary, appropriateand directly connected to your business.Consult your tax accountant for specificrequirements as they relate to you.

2. PROVINCIAL SALES TAX (PST), GOODS AND

SERVICES TAX (GST), AND HARMONIZED SALES

TAX (HST)As a service to Distributors, GNLD

collects and submits sales tax (PST) in theprovince of Ontario, GST Nationwide andHST in the Atlantic provinces and makespayments to Revenue Canada. In this case,tax is collected on the Suggested RetailPrice.

As an individual Distributor, you havethe option of filing with Revenue Canadafor your own business and resale number. Ifa Distributor has a resale tax number, thisnumber must be on file at GNLD prior toplacing an order. Each order placed mustindicate this number in the appropriatespaces.

J. TAX INFORMATION

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GNLD will be responsible for payingcommissions to Distributors who orderdirectly from GNLD. Distributors willreceive the following documents in theirmonthly commission package mailed byGNLD:

� Bonus Volume statement� Commission cheque� Account sheet summary� Invoices and credit/charge memos� Special mailings

NOTE: In order to take advantage ofvolume pooling, a Distributor must place atleast 100 personal Point Volume of productorders in a given sales month. In order tobe paid a bonus directly by the Company, aGNLD Distributor must be current on theirassociation renewal. If we do not receiverenewal instructions by the end of the monthin which you have earned a Bonus, theappropriate renewal fees will beautomatically posted to your GNLDaccount, guaranteeing that you will receiveany Bonus payments you are entitled to forthat month.

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K. PAYMENT OF COMMISSIONS

GNLD INTERNATIONAL


Your active GNLD Distributorship givesyou more freedom and more choices thanany other opportunity. GNLD helps you toachieve financial freedom, earn FREE tripsto exciting places, enjoy quality time withyour family, and much more. As an activeGNLD Distributor, you can receive bonuscheques, plus you get exclusive Internetaccess to free business tools, onlineordering and delivery tracking, salesorganization production reports and ourextraordinary recruiting tool, LifestyleMagazine..

An active GNLD Distributorship givesyou privileged access to our “DistributorOnly” section of www.gnld.com whichprovides you with an abundance of valuablebusiness-building resources. To keep yourcountless rewards active, be sure to updateyour Association Renewal annually.

In “Distributor Only,” you can print allthe FREE literature you want, includingpowerful fliers, research-packed Brochettes,must-read You Decide productcomparisons and compelling News YouCan Use articles! Download previous issuesof the GNLD News, ready to print andhand to your prospects and team! Stayinformed about life-changing events, who’s presenting crucial information, withspecific dates, times and locations! Also onthe Web, you can check out daily salesactivity, monitor team progress, and muchmore!

Lifestyle Magazine is published four timesa year. Your one-year subscription isincluded in the annual association renewal.The Lifestyle Magazine delivers hard-hitting, leading-edge product and sciencenews, and spotlights Distributors like youwho are reaching their dreams!

Don’t let your GNLD benefits lapse. YourGNLD Distributorship is your mostpowerful resource to making your businessa giant success. There’s never been an easierway to obtain the information you need toshare the power of GNLD. Keep yourdistributorship active and be sure to updateyour annual association renewal so you can

reap from the treasure-trove of outstandingbusiness-building resources.

Association renewals can be made byphone. fax or mail (for telephone renewalswe must be able to charge a credit card.

L. ASSOCIATION RENEWAL

GNLD INTERNATIONAL


1. STAY IN TOUCH WITH YOUR SPONSOR

When you are actively building a business,you will encounter challenges from time totime. When that happens, remember thatyour upline Director sponsor is there to helpyou quickly and efficiently resolve the issue.Your upline Director sponsor is the very bestperson to help you with questions regardingproduct, Marketing Plan, and training.

2. ONE-CALL SERVICE:YOUR DIRECT LINK TO GNLD

Along with your upline Director, GNLDprovides a direct link to a Distributor ServicesAssociate through our toll-free personalizedservice. The team of Associates at GNLD iscommitted to provide one-call service,which simply means that your call willquickly be connected to the next availableAssociate. When you need quick service,GNLD’s one call system is the fastest way toget connected to a Distributor ServicesAssociate.

YOU HAVE A BUSINESS OF YOUR OWN, BUT YOU ARE NEVER ALONE

To provide an even more personalized levelof service, each Distributor at every levelwithin GNLD’s entire operation cancontact a GNLD Associate to receive theone-on-one support they need. As aDistributor you can locate your GNLDAssociate simply by calling DistributorServices (800) 361-5591 or (905) 890-7120. Your GNLD Associate will be happyto welcome and service you as yourbusiness grows.

3. CHANGING YOUR ADDRESS

OR MASTER FILE INFORMATION

It is important that Distributors notify theGNLD Home Office immediately of anyaddress change. In order to ensure that youreceive all of our important mailings andLifestyle magazine, submit a change ofaddress thirty (30) days before your actualmove. If you do not inform GNLD of a changeof address and as a result a shipment is sentand returned back to GNLD, an additionalfreight charge will be assessed beforereshipment.

Additional master file information whichmay require immediate notice to GNLD isa change in name, telephone number orFAX number. Also please inform GNLD ofany Distributor status change such asmarriage, divorce or death (Also refer toPolicy section, Lines of Sponsorship, page 7).

GNLD INTERNATIONAL

M. CONTACTING DISTRIBUTOR

SERVICES

1. DAMAGED OR MISSING ITEMS

For Distributors who place orders directlywith GNLD, it is their responsibility to takecare of any shipping errors or damage on anydrop shipment orders that you place for yoursuccessline Distributors and customers, as wellas orders sent directly to you. You need toreport these problems to your DistributorServices Associate as soon as possible. Giveyour Associate the Invoice Number, locatedin the upper right-hand corner of the packingslip that came with the shipment. YourAssociate will advise you what to do with thedamaged item and make arrangements forany item missing from your order. Please alsorefer to SHIPPING POLICIES, Short andDamaged Shipments Section, page 23.

2. CUSTOMER GUARANTEE

All GNLD Nutritional, Personal Care andHome Care products carry a 100%satisfaction guarantee, while the GNLDWater Enhancement Systems have extendedwarranties on materials and labor. In theevent that any GNLD product a customerhas purchased is not satisfactory to them, theymay return the unused portion to the GNLDDistributor from whom they purchased it.The Distributor should then find out whythey are dissatisfied. (Was the taste not whatthey expected? Was it not filling their needs?)Offer a choice of replacement without charge;full credit toward the purchase of anotherGNLD product; or a refund of the fullpurchase price. This guarantee does not applyto products which have been intentionallydamaged or misused.

When making customer refunds, simplytake back the unused portions and call yourDistributor Services Associate. GNLD willreplace the products to you. Send the returnedproduct to GNLD’s shipping address viaCanada Post (see Quick Referenceinformation). Include your name andDistributor Number on a sheet of paper andenclose a note explaining why the personwas dissatisfied. Allow a minimum of twoweeks from the day you send the return toreceive replacement. Freight will bereimbursed to you on your account.

If a customer contacts GNLD directly,they will be referred back to the GNLDDistributor from whom they purchased theitem. If the customer has proof of purchaseand is unsuccessful in their attempt to receivea product guarantee directly from the sellingGNLD Distributor, GNLD reserves the rightto honor the guarantee on behalf of theDistributor and make deductions from theselling Distributors account in accordancewith this guarantee policy.

If the selling Distributor does not want thesame product replaced, we can replace it withsomething of equal PV value, or credit theiraccount. We will credit their account withthe Distributor Cost for the product, andthe full amount of the original productPV/BV will be deducted from their totals forthe current month. Keep this in mind whenyou are figuring your monthly totals. Makea note of the PV/BV amount and adjustyour records accordingly. For additionalinformation, please refer to GNLD’sGuarantee/Exchange and RepurchasePolicy on page 14 of the Policy Guide.

N. PRODUCT RETURNS

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GNLD INTERNATIONAL


As a Distributor you have the opportunityto play an important role in shaping thegrowth of your team by participating inGNLD’s Global Business Building System(GBBS) of training events. Attendingmeetings supports growth for you and yourteam by providing new skills, information,and ideas that help build a successfulGNLD business. Set an example for yourteam by attending all meetings and alwaysbring guests with you. You will set the tonefor your prospects and your team membersby being positive and enthusiastic abouteverything presented at any meeting.

Many of GNLD’s meetings are open toprospective Distributors who are typicallyinvited as guests of active Distributors. It isimproper for a GNLD Distributor to sponsor,recruit or attempt to recruit the guest orprospect of another GNLD Distributor.Violation of this policy is grounds forcensorship or cancellation of GNLDdistributorship status.

Guests and invitees of a GNLD Distributorattending a GNLD or Distributor-sponsored function are “protected prospects”

as to all GNLD Distributors meeting thatguest or invitee at the function.

“Protected prospect” status does notapply to persons who may be recruited incircumstances not related to GNLD orDistributor-sponsored functions by a GNLDDistributor who did not meet the prospectat such GNLD or Distributor-sponsoredfunction.

An invited prospect attending or broughtto a corporate-sponsored event is protectedfor ninety (90) days following thatcorporate event.

“Protected prospects” may only besponsored into a GNLD distributorship bya GNLD Distributor attending the GNLDor Distributor-sponsored function if thesponsor invited the “protected prospect” tothe function.

“Protected prospects” must sign in on theattendee roster of the GNLD orDistributor-sponsored event, indicating thename of the GNLD Distributor who invitedthem to that meeting.

P. MEETING ROOM CONDUCT

A distributorship is viewed by GNLD as anindependent business and the fundamentalunit upon which the GNLD MarketingPlan is based. Bonuses are paid to Directorsbased on the growth of their successline’sbusiness. Each Director sponsors and trainsothers to become Directors. This continuingprocess of self-duplication is at the heart of GNLD’s dynamic potential for businessgrowth and financial reward. By sharingGNLD’s products and career opportunitywith others, Distributors secure their ownfinancial futures by helping others discovera better, healthier way of life.

As a Distributor, you have the opportunityto demonstrate real leadership for your team.They will look to you for answers to theirquestions and guidance in developing theirbusinesses. Review the sections of yourDistributor Business Guide thoroughly;know where to find answers to policy,Marketing Plan and product questions.

As a Distributor you are eligible to orderdirectly from GNLD. You in turn areresponsible to pay bonuses earned by yourDistributors who do not order directly fromGNLD and choose to order from you. Youshould pay bonuses immediately uponreceiving your bonus cheque from GNLD.

O. LEADERSHIP

Documents

POLICIES AND PROCEDURES - GNLD.com