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Isagenix Independent Associate and Preferred Customer Policies & Procedures 2010

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Page 1: Isagenix Independent Associate and Preferred …media01.isagenix.com/abo/docs/pnp_hk_en.pdfIsagenix Independent Associate and Preferred ... the Compensation Plan, ... address listed

Isagenix Independent Associate and Preferred Customer

Policies & Procedures

2010

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SECTION 1: Introduction

1.1 Scope and Applicability

These Policies and Procedures govern the relationship between Isagenix International, LLC (“Isagenix”) or any of its affiliates, subsidiaries or related companies with any person or entity that engages in business as an Independent Associate or applies to become a Preferred Customer of Isagenix products. Unless the context clearly indicates otherwise, the terms “you” and “your” refer to each Independent Associate or Preferred Customer that executes an Independent Associate/Preferred Customer Application and Agreement that is accepted by Isagenix. Independent Associates and Preferred Customers may be referred collectively as “Position Holders” and are represented in the Isagenix marketing organization structure as holding an “Isagenix Position.” The terms “we”, “us”, “our” and the “Company” refer to Isagenix International. These Policies and Procedures, in their present form and as amended from time to time at Isagenix’ discretion, are incorporated into and form a part of the Isagenix Independent Associate and Agreement and of the Isagenix Preferred Customer Application and Agreement. All references to time frames are based on New York time unless otherwise stated. In the case of a dispute, these Policies and Procedures, as published and modified from time to time in English, shall be considered the standard for determining and resolving disputes and issues. 1.2 Amendments

Isagenix reserves the right to amend the terms and conditions of these Policies and Procedures, the Compensation Plan, and the Independent Associate and Preferred Customer Applications and Agreements at any time, as it deems necessary. You will be bound by any amendments upon notification of the amendments through any of Isagenix official channels of communication three days after the posting of such notice. Those channels of communication include, but are not limited to, posting of information to the Isagenix Web site, e-mail to the Independent Associate or Preferred Customer, announcements in any official Isagenix newsletter or other publication or mail to the Independent Associate or Preferred Customer at the address listed on the Independent Associate and Preferred Customer Applications and Agreements.

1.3 Invalid Terms

Should any portion of these Policies and Procedures, or the Independent Associate or Preferred Customer Applications and Agreements, or any other instruments referred to herein or issued by Isagenix be declared invalid by a court of competent jurisdiction, the balance of any such document and any of Isagenix’ rules, applications, or instruments shall remain in full force and effect.

1.4 Waiver

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

1.5 Company Use of Applicant Information

The Independent Associate or the Preferred Customer applicant hereby consents to allow Isagenix, its affiliates and any company owned in whole/part or any of Isagenix’ affiliates, to process and utilize the Applicant information as submitted in the signed Independent Associate or the Preferred Customer Application and Agreement (or as same may be amended from time to time) for business purposes related to the Isagenix business. The Independent Associate or Preferred Customer has the right of access to their personal Application information and to request updates and amendments. The Independent Associate or Preferred Customer hereby consents to Isagenix disclosing, now or in the future, such Application information to companies who Isagenix may, from time to time, deal with to deliver information to its Independent Associates or Preferred

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Customers to improve its marketing and promotional efforts.

1.6 Survival of Terms

The Independent Associate or Preferred Customer agrees that the provisions of this agreement pertaining to confidentiality, arbitration, use of the internet and the resale of products will survive the termination of their relationship with Isagenix.

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SECTION 2: Isagenix Position Holder Code of Ethics

As an Isagenix Position Holder:

2.1 I will be respectful of each and every person I meet while doing Isagenix business.

2.2 At all times I will conduct myself and my business in an ethical, moral, legal and financially sound manner (with honesty and fairness and an ethical and professional manner at all times.). I will not engage in activities that would bring disrepute to Isagenix or myself nor will I criticize Isagenix, its Management, other Isagenix Position Holders, the competition or their products.

2.3 I shall not, by my actions, bring Isagenix or the image of the Network Marketing industry into disrepute.

2.4 I will be truthful in my representation of Isagenix products by making no medical, diagnostic, therapeutic, curative or exaggerated financial claims and by clearly stating all terms of sale. I understand any claim of cure or treatment or any prescription is strictly forbidden.

2.5 I will continue to actively support the growth and encourage cooperation and support of ALL Position Holders including those outside of my own organization

2.6 I will provide support and encouragement to my customers to ensure that their experience with Isagenix is a successful and happy experience. I understand that it is important to consistently provide follow-up service and continue to actively support my Independent Associates and Preferred Customers.

2.7 I will fairly and correctly represent the Isagenix Team Compensation Plan and the income potential represented therein. I understand that I am prohibited from using my own income as an indication of other’s potential success, or using compensation checks or commission statements as marketing materials.

2.8 I will not willfully manipulate the Isagenix Team Compensation Plan at any time without exception.

2.9 Outside of the United States, I will not undercut or discount prices on any Isagenix products or sales aids.

2.10 I will ensure that I operate and market my business in an ethical manner that does not compromise the opportunity for other Position Holders or misrepresents the income opportunity.

2.11 I will not do or say anything that reasonably may be expected to the effect of disparaging Isagenix or diminishing or impairing their goodwill and reputation for the services they provide, including but not limited to making statement that may negatively influence their referral sources and others who are involved in or affected by their services.

2.12 I will abide by all of Isagenix’s Policies and Procedures now and as they may be changed in the future under any circumstances short of the written confirmation alluded to above.

2.13 I will continue to honor the confidentiality of Isagenix and other Position Holders for all information I received as a result of my relationship with Isagenix. This includes all information including but not limited to names, phone numbers, email addresses, mailing addresses, and any other contact information of individuals associated with Isagenix, compensation plan information, and all intellectual property the Position Holders is permitted to use as a result of their business relationship with Isagenix.

2.14 I will only enroll a Position Holder with the intent of that Position Holder actively participating in the Isagenix

Business Opportunity as a bona fide purchaser of Isagenix products. I will not enroll, nor participate in, condone, or provide advice with respect to the enrollment of, any Position Holder with the primary intent of using that enrollment to qualify for bonuses, incentives, promotions, rankings, or any other compensation opportunities. Isagenix, in its sole discretion, may withdraw or rescind any compensation or recognition earned as a result of what is deemed by Isagenix to be an improper enrollment and may, in its sole discretion, deactivate any improperly enrolled position.

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SECTION 3: Your Relationship with Isagenix

3.1 Becoming An Independent Associate

3.1.1 You become an Independent Associate when your Independent Associate Application and Agreement form has been received and accepted by Isagenix. Isagenix reserves the right to refuse any application, and will not be responsible for delays in processing any applications that are illegible or incomplete. If you receive and deposit a commission payment from us; that will also serve to affirm that you agree to be bound by our Policies and Procedures. As an Independent Associate you are required to give us your copy of tax return. You must certify that the salary tax return or profit tax return is issued by the Hong Kong Inland Revenue Department and submitted to the Company is correct. Isagenix will provide the relevant tax return forms to report your annual gross income from Isagenix. You have the obligation to maintain records that will enable you to properly and completely report all of your taxable income to the Hong Kong Inland Revenue Department. As an Independent Associate, you may enjoy certain tax advantages. Please consult with your tax adviser to determine if your Isagenix business offers any of those advantages to you.

3.1.2 As a convenience to the Independent Associate in placing initial and future wholesale business orders, the Independent Associate may choose to supply Isagenix with their signature and confidential bank account information exclusively for Isagenix’s files for the purpose of ordering initial product and/or optional monthly service for the Independent Associates’ business from the Company.

3.1.3 You may not use “Isagenix” or any derivative or confusingly similar variation of its trademarks or trade name on the web address for your Isagenix provided replicated website, your Back Office Display Name, Username, Company Name, or Recognition Name. Isagenix has determined a list of words that are prohibited from use in the aforementioned fields including but not limited to catalogue, online, wholesale, retail, order, and buy. If you feel you have been wrongfully denied use of your legal name you may appeal to the Isagenix Compliance Department.

3.1.4 Isagenix may need to contact you periodically and an email address is the most efficient method for Isagenix to reach you. Should you choose to provide Isagenix with an email address it must be valid and it is your duty to update your information in our records with your most recent email address. As a Position Holder you are not required to provide Isagenix with an email address but you will not receive notifications of items including but not limited to changes to your account or Autoship notifications.

3.1.5 As an Independent Associate, you must provide Isagenix accurate information about your citizenship. You may not enroll as an Independent Associate with falsified or misleading citizenship information nor participate in, condone, or assist another in providing Isagenix with falsified or misleading citizenship information.

3.2 Independent Contractor

3.2.1 You, as an Independent Associate or Preferred Customer, are an independent contractor. You are not an agent, employee, partner, or joint venturerer with Isagenix. You may not represent yourself as anything other than an Independent Associate. You have no authority to bind Isagenix to any obligation. You are responsible for paying your own salary taxes, profit taxes and any other taxes or financial obligations required by laws of Hong Kong. You must obey any all applicable Hong Kong laws, as well as Isagenix rules and regulations pertaining to your independent Isagenix distributorship or the acquisition, receipt, holding, selling, distributing or advertising of Isagenix products or opportunity.

3.2.2 As an Independent Associate or Preferred Customer you are not agreeing to the sale of a franchise or a distributorship, and that there are no exclusive territories granted to anyone, and that no franchise fees have been paid, nor are you acquiring any interest in a security.

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3.3 Indemnification

3.3.1 You agree to indemnify and hold Isagenix, its officers, agents, and directors harmless from any claim, damage, liability or loss arising out of your activities as a Position Holder.

3.3.2 You understand and agree that should you execute a personal business decisions to order products literature or other items from the company on behalf of any other person by authorizing the use of your Independent Associate payment information you will be bound by the terms of this agreement regardless of any decision or actions taken by the person you are ordering for. You agree to hold the company harmless from any dispute you or the company may have with this person due to you business decisions or actions.

3.3.3 As an Independent Associate or Preferred Customer, you are responsible for any verbal or written statements you make regarding Isagenix’s products and compensation plan that are not expressly contained in writing in the current Independent Associate Agreement or Preferred Customer Agreement, or advertising or promotional materials provided by us. You agree to indemnify Isagenix and hold it harmless from any and all liability including judgments, civil penalties, refunds, attorneys’ fees, court or arbitration costs or lost business we incur as a result of any unauthorized representations that you make.

3.4 Position Holder Eligibility and Restrictions

3.4.1 You must be of legal age and legally competent in the jurisdiction in which you reside in order to be an Independent Associate or Preferred Customer. For example, legal age in Hong Kong is eighteen (18) years old

3.4.2 Spouses are encouraged to be joint Position Holders in one position, but are allowed to each have their own independent Isagenix Associate or Preferred Customer Position. Spouses must join the same line of sponsorship as his or her spouse and be directly sponsored by them, regardless of whether either spouse is a Preferred Customer or Independent Associate. Change of the original sponsor is not permitted. The actions of one spouse will be attributed to both spouses and will result in disciplinary action against both spouses. Once enrolled a spouse may not be moved unless Isagenix discovers they are incorrectly sponsored.

3.4.3 You may have a financial interest in NO MORE THAN ONE (1) Isagenix position. This position may be converted into a business entity if, and only if, the new entity submits the documentation and meets all of the criteria set forth in Sections 3.4 and 3.9 of these Policies and Procedures. For a Hong Kong company, you must submit a certified copy of Certificate of Incorporation, update Annual Return and a Business Registration Certificate relating to the said company.

3.4.4 A Corporation, Partnership or Trust may become an Independent Associate. Legal entities must submit certified copies of their formation documents and attest to the management and ownership of the entity or, in the case of a trust, the name of the Trustee and the Beneficiaries. The entity must also submit a certificate of good standing from the jurisdiction in which it was formed if such a certificate is provided by that jurisdiction. All of these documents must be submitted within thirty (30) days of the acceptance of the entity’s Independent Associate Application and Agreement. The authorized officer, agent or trustee must sign the Independent Associate Application and Agreement form. The actions of corporate shareholders, officers, directors, agents or employees and the actions of partnership partners, agents or employees, which do not conform to Isagenix ’s policies shall be attributable to the entire corporate or partnership entity.

3.4.5 Unincorporated Businesses, Sole proprietor or partnerships with salary tax return with Hong Kong Inland Revenue Department where applicable, may become an Independent Associate. Proof of the issuance of the Business Registration Certificate and relevant salary or profit tax return (whichever is applicable) issued by Hong Kong Inland Revenue Department must be submitted to Isagenix.

3.4.6 Isagenix, while allowing the above identified business entities to be Independent Associates, will tie recognition to the primary applicant (signature on agreement) as the authorized representative of said entity.

3.4.7 Isagenix will consider you a wholesale customer until such time as you earn a commission under the Isagenix compensation plan. Once you earn a commission under the Isagenix compensation plan, you will be considered an Independent Associate.

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3.5 Preferred Customer Program

3.5.1 The Preferred Customer Program is for a person who wishes to purchase Isagenix products at wholesale prices, but does not want to participate in the income opportunity. You become a Preferred Customer when your Preferred Customer Application and Agreement is received and accepted by Isagenix. Preferred Customers will be subject to the account requirements of 3.1.2.

3.5.2 As a Preferred Customer you will occupy a position in the Isagenix marketing organization structure. As a Preferred Customer you are permitted to purchase Isagenix products for your personal or family use only up to a maximum of $5,000 annually. You are not permitted to resell products or make purchases to enable others to resell Isagenix products. As a Preferred Customer you may refer customers who wish to order products or enroll as an Independent Associate or Preferred Customer to call Isagenix Customer Service. However, you will not participate in the Isagenix compensation plan available only to Independent Isagenix Associates. As a Preferred Customer you are not required to provide Isagenix with your date of birth or tax return.

3.5.3 A Preferred Customer may, within the first twenty-four (24) months of original signup, elect to become an Associate

and have their Preferred Customer position converted into an Associate Position by completing and submitting an Independent Associate Application and Agreement. Preferred Customers converting to Associate status will have their placement position converted to that of Independent Associate and will become eligible to accumulate volume and earn future compensation based upon the Isagenix Compensation Plan. No bonus will be paid on volume generated before the conversion to Associate position.

3.5.4 The Independent Associate who is the enrolling sponsor of a Preferred Customer is eligible to earn Product Introduction Bonuses and/or Bonus Volume (BV) on purchases made by their personally enrolled Preferred Customers as defined in the Isagenix Compensation Plan. Active consultants may also earn Business Volume on purchases made by Preferred Customers or Associates referred through their personally enrolled Preferred Customers websites.

3.6 Annual Renewal

As a Position Holder, you must renew your membership in order to continue enjoying the benefits of Isagenix. If you do not renew, you will lose your benefits. Every year (on the acceptance date of your original application) an annual administrative renewal fee is due. As a convenience, during your eleventh (11th) month, Isagenix will automatically renew your Associate Position by charging your most recently used payment method. This will however not change your original anniversary date. The annual renewal fee (depending on the application fee you paid in the first year) is HK$385, HK$150 or HK$100 if you have already signed up the Autoship Program. If you are a Preferred Customer wishing to convert your status to that of Associate within 12 months of your original sign-up date, you will not be charged an additional fee at time of conversion but will be required to renew on the anniversary date of your original Preferred Customer agreement.

3.7 Change of Sponsorship/Placement Change

3.7.1 As an Independent Associate (or for only a specified limited period following enrollment as a member of our Preferred Customer Program), you are the Enrolling Sponsor of any Position Holder that you directly referred and sponsored into the Company. A Placement Sponsor is the sponsor that will be directly upline of the new Position Holder. You can be both the Enrolling Sponsor and Placement Sponsor. We will recognize the sponsorship positions as listed on the Independent Associate Application submitted by a new Independent Associate. If we receive more than one application, the one we accept first will be recognized as the enrolling sponsor.

3.7.2 If your Isagenix Position is voluntarily terminated you may rejoin Isagenix after a minimum of six (6) months from the date of termination. If you allow your Isagenix Position to lapse by way of failure to renew and you continue to order, you must still wait a minimum of six (6) months from the date of your last order before you may signup in a new position. If you allow your Isagenix Position to lapse by way of failure to renew and you continue to order, you may sign up in a new position with the same Enrolling Sponsor in the next open position in the same sponsoring leg.

3.7.2.1 If you wish to allow your Isagenix Position to voluntarily lapse with the intention of rejoining in a new line of sponsorship you must complete the applicable request letter found in your back office and submit such letter to Isagenix Compliance no less than five (5) days before your Isagenix Position lapsing.

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3.7.2.2 Once you have relinquished a position you have no rights to any of the position holders in your previous downline in accordance with Section 5.4.

3.7.3 In the event a Position Holder believes they have misplaced a newly enrolled Position Holder in their genealogy and/or enrolled the Position Holder with the wrong enrolling sponsor they may request a placement and/or sponsor change subject to the conditions and fee schedule of 3.7.3.1. Placement changes are defined as moving a newly enrolled Position Holder to the bottom outside left or bottom outside right positions. Vertical Placement changes are not allowed.

3.7.3.1 If a placement change is requested within 3 business days of a new Position Holder enrollment the placement change will be processed free of charge. If the placement change is requested within 4-5 business days of the new Position Holder enrollment the requesting Position Holder will be assessed a HK$200 fee. If the placement change is beyond 5 business days or commissions have closed the placement will only be granted upon approval from Isagenix management. A placement requiring management approval will cause the Position Holder to be assessed a HK$800 fee.

3.7.3.2 If the Position Holder has a downline the Placement Change will require management approval and will be assessed a HK$800 fee.

3.7.4 In the event the Position Holder believes they have placed a new Position Holder under the wrong sponsorship they may request a sponsor change, thus leaving the new Position Holder in the same position but with a new enrolling sponsor within their upline genealogy. All enrolling sponsor placement changes will be subject to the fee schedule of 3.7.3.1 and 3.7.3.2.

3.8 Re-Entry

3.8.1 If an Independent Associate is qualified as an Executive and has built their organization to where it is producing 250 cycles in a single week they may petition for a re-entry position. Re-entry is a privilege of an Independent Associate and should not be understood to be a right. The granting of re-entry positions is discretionary and subject to change if and when the Company may deem such change to be in the best interests of the organization as a whole.

3.8.2 Isagenix shall be recognized as the sponsor of any re-entry position. The original sponsor of the Independent Associate will not maintain sponsor status of the re-entry position. All benefits of the re-entry position will however accrue to the original sponsor as outlined in section 3.8.3.

3.8.3 The original enroller of the Independent Associate who has earned a re-entry position, is entitled to team bonus volume, and generation bonuses (fast start bonuses) of the re-entry position, subject to paid as rank in the Isagenix Compensation Plan requirements. The original enroller of the Independent Associate is not entitled to earn matching team bonuses, product introductory bonuses, or to use the re-entry position for qualification purposes.

3.9 Selling or Changing Your Isagenix Position

3.9.1 Isagenix reserves the right to approve or disapprove any change you propose to make to your business name or structure, the formation of partnerships, corporations, and trusts for tax, estate planning, and limited liability purposes. Before we can approve such a change, you must complete a new Independent Associate Application and Agreement and file it with us outlining the proposed change and the reasons for the proposed change.

3.9.2 If you are considering selling your Isagenix Position, there is a legal procedure you must follow to gain approval of the request. An Isagenix Position may be sold only after Isagenix has approved the request in writing. We will not allow an Isagenix Position to be sold if it has not been actively engaged in retail selling of Isagenix products or the Sponsoring of new Position Holders and has not been an active “paid-as” Executive for the previous six (6) consecutive months. We will only approve a proposed sale/transfer of the Isagenix Position if you have first given us at least thirty (30) days written notice of the proposed terms of the sale to a bona fide purchaser and allowed Isagenix to exercise a First Right of Refusal. You can request these forms through the Compliance Department at the Isagenix Home Office. No Preferred Customer Position may be sold or assigned.

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3.10 Professional Practitioners

3.10.1 A Professional Practitioner is an individual operating multiple physical locations for their profession. A valid Professional Practitioner includes but is not limited to chiropractors, massage therapists, doctor’s offices, and other ‘by appointment only’ operations as defined by Isagenix.

3.10.2 The Professional Practitioner will be allowed to have an interest in more than one (1) Isagenix Position. The Professional Practitioner will be enrolled with the original Master ID for their primary practicing location. All subsequent practicing locations will be given positions underneath the Master ID as a sub-group using the same identification information as the Master ID. The Professional Practitioner will receive a single form 1099 to the Master ID covering all sub-groups.

3.10.3 To qualify as a Professional Practitioner the Position Holder must provide proof of professional certification or professional licensing, proof of a Business Registration Certificate of Hong Kong, a letter from the I.R.S. with the EIN or TIN for each location, and the articles of incorporation.

3.10.4 The Subsequent transfer of a specific location will be handled on a case by case basis subject to review by Isagenix Compliance.

3.11 International Sponsorship

3.11.1 Isagenix offers International Sponsorship to our Associates. International Sponsorship allows the Associate to

enroll associates located outside their region and obtain BV and other benefits as they would if they enrolled them in their same region. If you participate in International Sponsorship you are agreeing to the Policies and Procedures of each respective country in which you enroll associates from; as well as the terms and conditions of the International Sponsorship Agreement. You can obtain International Sponsorship by purchasing the International Regional Associate Application Agreement which can be purchased through your Associate Back Office or by calling Customer Service or by receiving the International Sponsorship as part of a product pack, promotion, or reward.

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SECTION 4: Ordering, Purchasing and Reselling Products

4.1 Initial Purchase

You are not required to purchase any product in order to be an Independent Associate or Preferred Customer. Except where prohibited by law, you are required to pay an Administrative Fee at the time of submission of your Independent Associate or Preferred Customer Application and Agreement to Isagenix. This payment is an Associate Administrative fee and must be renewed annually. The annual fee is non-refundable, except where covered by state buy back laws described in Section F. As an Independent Associate or Preferred Customer, you will receive free access to the Isagenix supplied Web site.

4.2 Inventory Purchases

4.2.1 The Isagenix program is built on retail sales to the end consumer. Isagenix encourages its Independent Associates to only purchase inventory that they and associates of their family will personally consume, or which will be resold to others for their ultimate consumption or resale. Isagenix retains the right to limit the amount of purchases you may make, if, in our sole judgment, we believe those purchases are being made solely for qualification or recognition purposes instead of for consumption or resale. Preferred Customers are permitted to purchase products for their personal use only, and not for resale.

4.2.2 70% Resale Rule: To be eligible for bonuses, an Associate must meet Isagenix’s qualification requirements and comply with the 70% Resale Rule. Under this rule, you may not order additional product unless you have sold or used for personal or family use at least 70% of the product that you have previously purchased. The verification section on Isagenix’s order form is designed to support the 70% Resale Rule. However, you make the certification that you have used or resold at least 70% of your prior orders regardless of the method that you use for placing the order.

4.3 Payment 4.3.1 All orders must be accompanied by proper payment including all applicable shipping/handling fees and sales tax (if

applicable). We accept payment in the form a cashier’s check, money order, Visa, MasterCard, American Express, or Discover Card and electronic checking ACH or IsaWallet where available. We will not process orders that are not accompanied by full and proper payment. If paying by electronic check, please allow 3-5 business days for the check to process. Although appropriate Bonus Volume will be earned at the time the order is accepted, your order will only ship once the check clears our bank.

4.3.2 If the Position Holder fails to pay for products or services, the Company is authorized to withhold the appropriate amounts from the Position Holder’s commission and bonus checks, debit or credit card/electronic checking accounts, if any, which the Position Holder has authorized the Company to charge. If payment owed isn’t made, the Position Holder may lose their marketing organization and future commissions and bonuses, and may be placed on inactive status by the Company for an indeterminate period. The Company will not be responsible for the loss of any commissions and bonuses or other payments because of delays or errors in orders, charges, receiving agreements, or other acts outside of the control of the Company.

4.4 Cut-Off Date for Orders

In order for a standard or expedited order to be counted in the current day’s Business Volume (BV), it must be received by 12 a.m., New York Time, USA. Standard orders will then ship the following business day. Please check with Customer Service for cut off times for same-day shipments of expedited orders.

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4.5 Order Confirmation

As a courtesy an order confirmation e-mail will be sent (if you have an e-mail address on file with Isagenix.) This confirmation e-mail will also contain the date and time of the order and IP address from which the user was connected to the Internet. This information will be retained by Isagenix with the order and used as proof of your acceptance of the Isagenix Policies and Procedures. In the event there is a dispute with any financial institution concerning this payment, Isagenix will submit this information to the financial institution and you agree to accept this as proof that you authorized the use of your account for payment or to provide evidence of fraudulent use of your account. Isagenix is not responsible for non-receipt of the e-mail due to invalid e-mail address on file or for other failures of the Internet e-mail system.

4.6 Autoship

4.6.1 You can ensure that you receive a shipment of our products every 30 days by enrolling in Autoship. If your Autoship is for the amount of PV required in your region to remain active in each 30-day period, it assures that you remain “Active” and that you are eligible for ongoing Team Bonuses in conjunction with the other qualifications for receiving team bonuses. It also eliminates the inconvenience of placing monthly orders.

4.6.2 There is no limit to the number of items on an Autoship order. Autoship can combine any variation of products excluding Product Introduction Paks, which are only available for purchase as part of a new Associate’s or Preferred Customer’s application process.

4.6.3 Your Autoship order will typically be placed every thirty (30) days from the date you originally establish your order, or on the date of your choosing. If the processing date falls on a weekend or holiday, the Autoship will be processed on that date and shipped the following business day. If payment has not been received and processed by the due date, the Autoship order will not be sent, and your qualifications for active status and bonus pay may not be met.

4.6.4 You may pay for your Autoship by having a credit card on file, or by automatic check withdrawal where applicable. If paying by automatic check please allow 3-5 business days for the check to process. After the check clears our bank, your order will ship.

4.6.5 You may change an Autoship order. You can make your Autoship changes online directly in your replicated Web site office or changes to your Autoship may be changed via mail or fax by submitting a downloaded version of the application form found in the Library of your online Independent Associate/Preferred Customer Back Office.. Written orders that are faxed or mailed into the Home Office must be received a minimum of five (5) days before the normal processing date or it will not be implemented until the following month.

4.6.6 You may terminate your Autoship order at any time, but only by contacting our Customer Service Department, during normal business hours. If you do, however, this could cause you to be inactive and be ineligible to earn Team Bonuses on all volume that would normally accumulate in your sales teams. Autoship changes must be made within 24 hours of the normal processing date or it will not be effective until the following month.

4.6.7 Autoships may only be established or amended by the Independent Associate or Preferred Customer responsible for receipt and payment of these orders – without exception.

4.6.8 Sponsoring Position Holders may not set up these types of ongoing orders on behalf of their new Independent Associate or Preferred Customer.

4.6.9 Any Associate or Preferred Customer that fraudulently signs up a person unknowingly as an Independent Associate or Preferred Customer or who sets up a fraudulent Autoship order will have their Membership terminated. In addition, Isagenix may pursue fraudulent behavior, for any misrepresentation of the Isagenix Opportunity, using all legal means available.

4.7 Resale of Product

4.7.1 Only authorized Independent Associates of Isagenix may purchase Isagenix products for resale. Customers, including but not limited to Preferred Customers and Retail Direct Customers, are not permitted to resell products.

4.7.2 Isagenix products may not be sold through catalogues or other mass retail sales medium, infomercials or television, without the prior written approval of Isagenix.

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4.7.3 Internet product sales may be made only on Isagenix approved Associate or Preferred Customer Web sites. Isagenix products may not be sold or displayed on any online auctions, including but not limited to, eBay, UBid, eBay stores, Yahoo, Buy It Now stores, etc.

4.7.4 Isagenix products may not be displayed and sold in retail establishments where the primary source of income is the resale of products unless such locations are approved and duly appointed by Isagenix. Isagenix products may be sold in service-related and by-appointment businesses, where the primary source of income is from such services and not from product sales (such as salons, spas, doctors’ offices, and health clubs and weight clinics.)

4.7.5 Only Isagenix produced, or pre-approved literature, banners, or signage may be displayed on a shelf, counter, or wall.

4.7.6 Resale of Isagenix products in any jurisdiction where such re-sales are not recognized or permitted is strictly prohibited.

4.8 Retail Direct Customer

Some of your retail contacts would prefer to deal directly with the Company for ordering and shipment, but they prefer not to become an Independent Associate. You may refer non Position Holders to Isagenix for product purchases, by providing them with the proper ordering information and your Associate ID number. Those who you refer will become Retail Direct Customers and will be issued their own retail ID number. They will be sold our products at our suggested retail price. We will include the retail markup from the sale in your weekly Bonus payment, less any administration fees. You will receive a payment for the retail profit even if you do not qualify for any other compensation. The Business Volume (“BV”) from your Retail Direct Customer’s purchases will count as personal volume (“PV”).

4.9 Sales Tax (If applicable)

4.9.1 Where applicable, if you are a resident in a state or jurisdiction where Isagenix collects taxes, we will collect and remit sales taxes on your behalf. The sales tax is based upon the tax rate in the jurisdiction that the product is shipped to. Generally it accessed on the retail price paid by the end consumer. Isagenix allows Position Holders to declare whether an item is for personal consumption or sold at the suggested retail price. Where allowed by the taxing jurisdiction, you may submit a current Sales Tax Exemption Certificate (STEC). Once the STEC is submitted and approved by Isagenix, we will not charge or collect sales tax on your orders shipped to that location. You will be responsible for tracking and reporting all sales and sales taxes due. Isagenix will not reimburse sales tax on orders placed before we receive a STEC.

4.9.2 Under the terms of these agreements, Isagenix is required to collect the applicable tax at the time of sale. The jurisdiction is determined by the ship to address of the order. The tax collected will be based on one of four categories:

4.9.2.1 The tax will be on the wholesale cost for those orders placed by an Associate or Preferred Customer for their own personal or family consumption. This will include all Autoships orders unless you specify they are being purchased for retail sale.

4.9.2.2 The tax will be on the suggested retail price of any orders placed by an Associate for resale.

4.9.2.3 The tax will be on the actual sales price of any order placed by a retail customer using your site to order.

4.9.2.4 The price subject to sales tax will include the shipping charge if the state where the products are shipped requires sales tax be charged on this cost.

4.9.3 You hereby agree to indemnify and hold Isagenix harmless regarding any liability, including financial that we may incur as a result of your failure to properly declare that the products are for personal or retail use.

4.9.4 As a Position Holder, when you sell the products, you should collect the sales tax based on your selling price. The taxes you collect will be a reimbursement for the taxes pre-collected by Isagenix. You will not have any additional reporting to do.

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4.9.5 Your Isagenix order screen will contain a check box next to each line item. You are responsible for checking or un-checking the box based on whether the order is being purchased for resale or for personal use.

4.9.6 For those of you who are enrolled in the optional Autoship program, sales tax will be collected on the wholesale price unless you designate that it is being purchased for resale. If you prefer the Autoship order be for resale, please modify your Autoship order. During the modification process you will be presented with a check box next to the line item that designates sale category.

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SECTION 5: General Operational Policies

5.1 Out-of-Market Sales

You may not sell Isagenix products, sign up new Position Holders or promote the income opportunity in countries or territories that have not been officially opened by Isagenix. Nor may you export or sell directly or indirectly to others who may export Isagenix’s products, literature, sales aids or promotional material relating to Isagenix, its products or the Isagenix program from any Isagenix geographic market into any other country regardless of whether or not Isagenix may be doing business there. Any violation of this rule constitutes a material breach of this contract and is grounds for immediate termination of your Associate Position or Preferred Customer status. The reason for this rule is that all Isagenix products are labeled to comply with the laws of the specific individual country or market, and those who violate this provision could seriously jeopardize or compromise the ability of Isagenix to obtain governmental approval in countries where approval is pending or planned.

5.2 Confidential Information

5.2.1 In order to assist you in the conduct of your Isagenix business, we may supply you with reports and information. That information includes, but is not limited to, marketing plans and strategies, products, purchases, pricing and information concerning your down and upline sales organization. (All or any part of that information may be referred to in these Polices and Procedures as the “Lists.”) You acknowledge and agree that all such information is Isagenix’s property and must be held confidential. You agree that you will not directly or indirectly disclose any of the confidential information on the Lists to any third party or use any of the information to compete directly or indirectly with Isagenix. You also recognize that Isagenix’s marketplace is the network marketing industry, and that competition with Isagenix includes using the Lists in other network marketing companies regardless of the type of product they might sell.

5.2.2 Isagenix business relationship with its vendors, manufacturers and suppliers is confidential. You may not contact, directly or indirectly, or speak to or communicate with any representative of any of our suppliers or manufacturers except at an Isagenix sponsored event at which such a supplier/representative is present at our request. Violation of this regulation may result in termination and possible claims for damages if the vendor/manufacturer’s association with Isagenix is compromised by your contact or actions.

5.3 Cross Sponsoring/Other Business Opportunities

5.3.1 An Independent Associate or Preferred Customer shall not sell to other Isagenix Position Holders, non-Isagenix products or in any way promote to such Isagenix Position Holders the opportunities in marketing programs of other companies

5.3.2 You cannot sponsor or attempt to sponsor anyone from your personally enrolled or any other Isagenix sales group (downline or upline) into any other multi-level marketing (MLM) or network marketing organization. Nor may you introduce other business opportunities, goods, or services to any Isagenix Position Holder, including those you have personally enrolled. Violation of these policies is grounds for termination of the Independent Associate or Preferred Customer. It may also give rise to other claims for unauthorized use of our confidential information.

5.3.3 You may not use Isagenix’s customer network, or assist others, in using the executive reports or any other information provided by any Isagenix website to sell other products or services. Use of the executive reports for anything other than marketing operations we have pre-approved is limited to those Independent Associates and Preferred Customers that you have personally sponsored. Misuse of an executive report is grounds for, but is not limited to, termination of an Isagenix Position. The executive reports are the exclusive property of Isagenix. Isagenix may, at it sole discretion, reclaim and take possession of the executive reports. You also recognize and agree that misuse of the executive reports cannot be fully compensated through monetary damages and, therefore, you agree

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that we may seek and obtain a temporary restraining order, preliminary and permanent injunctive relief prohibiting you from misusing the executive reports. You also understand and agree that we may seek compensatory damages if you misuse the executive reports. You also agree that the obligations under this section will survive the termination of your Associate Position.

5.4 Cross-line Raiding

Cross-line raiding is strictly prohibited. “Cross-line raiding” is defined as the enrollment of an individual or entity that already has a current Independent Associate Agreement on file with Isagenix, or who has had such an agreement within the preceding six (6) calendar months with a different line of sponsorship. The use of trade names, assumed names, corporations, partnerships, trusts, social insurance numbers, tax ID numbers, social security numbers, or fictitious ID numbers to circumvent this policy is prohibited. Position Holders may not demean, disparage, discredit, or invalidate other Position Holders in an attempt to entice another Position Holders to become part of the first Position Holder’s down-line organization.

5.5 Phantom or ‘Ghost’ Associates

The practice of signing Phantom or ‘Ghost’ Associates is strictly prohibited. Any instances of this practice will result in immediate termination of the Business(s) involved. Phantom or ‘Ghost’ Associates are individuals or entities that are not aware of or have not given their express written agreement by knowingly signing an Isagenix Independent Associate Application and Agreement or Isagenix Preferred Customer Application for their enrollment into Isagenix as an Independent Associate or Preferred Customer. In the case where there is no evidence or means to verify that the information on an Isagenix Independent Associate Application and Agreement or Isagenix Preferred Customer Application is valid the application will be deemed to be a Phantom or ‘Ghost’ Associate.

5.6 Income Claims

5.6.1 Independent Associates or Preferred Customers may not make any revenue or income claims, projections or misrepresentations. “Check flashing,” false, deceptive or misleading claims regarding the opportunity or products are prohibited. We firmly believe that the Isagenix opportunity is great. Neither Isagenix nor any of the Independent Associates need to resort to artificial and unrealistic projections. Isagenix Independent Associate earning claims should not be construed as representative of a fixed, or standard earnings from any Isagenix business. The income levels achieved by Isagenix Independent Associates are not intended to imply that another Associate will achieve the same level of income. The income levels achieved will be dependent upon the individual Associate’s business skills, personal ambition, time, commitment, activity and demographic factors. Examples of income claims include the possibility of a certain number of cycles in a month, the ability to make “full time wages”, and showing any earning statements.

5.6.2 When making any approved income claim you must accompany the claim with the following disclaimer:

5.6.2.1 “Isagenix Independent Associate earning claims should not be construed as representative of a fixed, or standard earnings from any Isagenix business. The income levels achieved by Isagenix Independent Associates are not intended to imply that another Associate will achieve the same level of income. The income levels achieved will be dependent upon the individual Associate’s business skills, personal ambition, time, commitment, activity and demographic factors.’

5.7 Product Claims

5.7.1 You may not make any claims as to therapeutic or curative properties about the products. In particular, you may not make any claim that Isagenix products are useful or can help in the diagnosis, prevention, treatment or cure of any disease or condition. Such statements can be perceived as medical claims. Not only are those statements totally against Isagenix policy, but they may also violate food and drug and relevant laws and regulation of Hong Kong. We suggest that you and your customers always consult your physician or health-care professional before starting this or any other weight, wellness or fitness program.

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5.7.2 You will not represent that Isagenix, its products, or program have been approved or endorsed by any government departments of Hong Kong Special Administrative Region (“HKSAR”) including but not limited to Department of Jusstice, Department of Health, Hospital Authority or other relevant departments which do not approve or endorse marketing programs.

5.7.3 You may not make any claims as to the weight loss potential from using Isagenix products except as specifically set forth in official Isagenix literature or publications or as otherwise approved in advance and in writing by Isagenix. A weight loss claim includes but is not limited to the following examples: “lose 10 pounds in 10 days”, “lose 10 pounds of fat”, or “I lost 10 pounds in 10 days.”

5.7.4 When making any approved product claims you must accompany the claim with the following DSHEA disclaimer:

5.7.4.1 These statements have not been evaluated by Department of Health or relevant departments of HKSAR, Isagenix programs and products are not intended to diagnose, treat, cure, or prevent any disease. Always consult your physician or health care professional before starting this or any other health or fitness program. If you are under the age of 18, pregnant, lactating, are allergic, have any other medical condition, please consult a physician before use. Discontinue use if any allergic reaction occurs. Diabetics: Use only under direct medical supervision. KEEP PRODUCTS OUT OF REACH OF CHILDREN.

5.7.5 When making any approved weight loss claims you must accompany the claim with the following disclaimer:

5.7.5.1 Results may be greater than or less than those depicted on this Web site and can be influenced by factors including your metabolic rate, energy expenditure, and diet. The average weight loss in a recent study was seven pounds in the first nine days using the 9 Day Program. Always consult your physician or heal-care professional before starting this or any other health or fitness program. As with any health or fitness program, a sensible eating plan and regular exercise are required in order to achieve long-term weight-loss results.

5.8 Product Pricing Isagenix reserves the right to adjust the price of its products or services at any time.

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SECTION 6: Advertising and Use of Company Name

6.1 Use of Trademarks, Copyrighted Materials and Intellectual Property.

6.1.1 Isagenix may license the use of its trademarks, trade-names, copyrights, or other types of intellectual property to Position Holders, subject to the limitations herein and subject to the limitations in any licensing agreement. A licensing agreement may be obtained from the Isagenix Legal Department.

6.1.2 Independent Associates and Preferred Customers may not use any Isagenix owned intellectual property on merchandise including but not limited to clothing, buttons, stickers, and coffee mugs.

6.1.3 Position Holders may not use any of Isagenix’s current or after acquired trademarks or any confusingly similar variations of its marks, in a manner that may possibly cause confusion, mistake, or deception as to the source of the products or services advertised.

6.1.4 A Position Holder may not use Isagenix’s trademarks or any confusingly similar variation of its trademarks in a business name, e-mail address, internet domain name or sub-domain name, telephone number, or in any other address or title.

6.1.5 The Position Holder agrees to immediately re-assign to Isagenix any registration of the Company names, trade names, trademarks, or Internet domain names registered or reserved in violation of this policy. The provisions of this section survive the termination of the Agreement. Failure to do so will result in immediate termination of the Position Holder.

6.1.6 All sales tools must be pre-approved by Isagenix. Position Holder may not use Isagenix’s trademarks on non-approved Sales Tools.

6.1.7 Isagenix, in its sole discretion, will determine whether a variation of its trademark is confusingly similar.

6.1.8 Position Holders shall not use Isagenix’s trademarks or copyrights in countries where it is prohibited.

6.1.9 Isagenix’s literature and media are copyrighted by Isagenix and may not be duplicated without prior written consent.

6.2 Internet and Web Site Policy

6.2.1 Isagenix maintains an official corporate Website and provides Web sites to all active-status Independent Associates and Preferred Customers. All Independent Associates and Preferred Customers must use the Isagenix-provided Web sites only. Third-party Web sites will not be allowed. An Independent Associate may advertise on the Internet by placing a pre-approved “Banner image” on Web sites that link directly to their Isagenix-provided Web site. You may only use your Isagenix-provided Web site in connection with your Isagenix activities. All Independent Associates and Preferred Customers must implement and publish a privacy policy that protects any information gathered from being sold or used by anyone else.

6.2.2 Isagenix will allow Independent Associates to maintain domain names with the sole purpose of redirecting to their Independent Associate replicated website. Within such domain names the Independent Associate may not use Isagenix’s trademarks or tradenames, or any derivatives or confusingly similar variations of its marks, in a manner that is likely to cause confusion, mistake or deception as to the source or sponsorship of the website.

6.2.3 Independent Associates and Preferred Customers may not use Isagenix’s trademarks, or any derivatives or confusingly similar variations of its mark, in a manner that is likely to cause confusion, mistake or deception as to the source of the products or services advertised.

6.2.3.1 You may not submit or use Isagenix’s trademarks or any derivative or confusingly similar variation of its trademarks or trade name (e.g. iasgnix, icogenics, isogenix, isagenex, issagenix, isagenixdetox, isagenixblog, isogenixforum, etc.) to an Internet search engine or “pay per clicks” service.

6.2.3.2 You may not post “Isagenix” or any derivative or confusingly similar variation of its trademarks or trade name on any internet forum, discussion group, news group or online auctions.

6.2.3.3 You may not use “Isagenix” trademarks or trade name in registering any business name, e-mail address

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(e.g. myisagenix@aol. com, [email protected], [email protected]), Internet domain (e.g. myisagenix.com, mynameisagenix.com, getisagenixhere.com, etc.) or sub-domain name, Web site text, meta-tag list, telephone number, or in any other address or title in any in the U.S. or any country.

6.2.3.4 You agree to immediately re-assign to Isagenix any registration of Isagenix’s names, trade names, trademarks or Internet domain names registered or reserved in violation of this policy. The provisions of this section survive the termination of the Contract. Failure to promptly reassign any registration will result in suspension, termination and we may institute legal proceedings against you.

6.2.3.5 Isagenix determines, in its sole discretion that a name is a derivative or confusingly similar – you agree to immediately comply with Isagenix instructions for transferring the name..

6.2.4 Electronic Mail Advertisements: All advertisements sent via e-mail, telephone or facsimile must comply with all antispamming laws for the state or country where the intended recipient resides. The Independent Associate is under obligation to research and comply with all laws concerning unsolicited commercial e-mail. Under Hong Kong law, it is unlawful “to use any telephone, facsimile machine, computer, or other device to send an unsolicited advertisement. Electronic mail advertisement means any e-mail message, the principal purpose of which is to promote, directly or indirectly, the sale or other distribution of goods or services to the recipient.” (CAN-SPAM Act of 2003).

6.2.5 While participating in Lead Generation programs is permitted, no Independent Associate or Preferred Customer may create or distribute, any competing lead generation program similar or like IsaLeads. A competing lead generation program is one that offers to Position Holders services similar to the IsaLeads program. A lead generation program is a website that allows an Associate to gather information from a prospective customer or Position Holder in order to recruit that individual.

6.3 Marketing/Promoting Your Business (Telephone, Business Title, News Media and Print Advertisement)

6.3.1 Phone Etiquette: As an Independent Associate or Preferred Customer, you may not answer your phone or have a recoded message only using the name Isagenix. Your greeting or message may only state and must specifically state you are an “Isagenix Independent Associate.”

6.3.2 Phone Directory: Any Independent Associate may place a text listing of its name in the white or yellow pages of a telephone directory followed by “Isagenix Independent Associate.”

6.3.3 Business Title: If an Independent Associate selevts a business title, the title must clearly state that the Independent Associate is an “Isagenix Independent Associate.” An Independent Associate’s title may n ot imply that the Independent Associate is an employee or agent of the company. Each time Isagenix’s logo or name is used in writing and in relation to an Independent Associate the Independent Associate must identify itself as an “Isagenix Independent Associate” and include the small “™” signifying the mark is trademarked.

6.3.4 News Media: Isagenix Independent Associates and Preferred Customers are not permitted to contact the news media to

promote Isagenix and/or their independent Isagenix business. News Media include but are not limited to all forms of internet based journalistic communications such as blogs, forums, and bulletin boards. If contacted by the news media, Independent Associates and Preferred Customers are required to have the news media call Isagenix at 480-889-5747 or email [email protected]. Any interviews of Independent Associates or Preferred Customers by the news media must have prior approval and be coordinated through the Isagenix Home Office. Any violation of these news media policies may result in immediate termination of status.

6.3.5 Print Advertisement: Some Independent Associates use classified advertising I the newspapers to find prospects. The

following rules apply:

6.3.5.1 No advertisement may imply that a job or position is available. 6.3.5.2 No specific income or income claims can be promised. 6.3.5.3 Advertisements may not contain references to Isagenix or its products. 6.3.5.4 You may not use any of Isagenix’s trademarks or trade names.

6.3.6 Print Advertisement: Independent Associates must obtain prior written approval from the Compliance Department for all advertising.

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6.4 Repackaging Products Under no circumstances may an Independent Associate print their own product labels or repackage Isagenix products. Products are to be sold in their original packaging only. 6.5 Trade Shows With our written authorization, you, as an Independent Associate, may present our products and income opportunity at trade shows. We must receive a written request for participation in trade shows at least two week prior to the show. Only Isagenix products and/or opportunity may b offered in the trade show booth. Only Isagenix produced marketing materials may be displayed or distributed. You may not sell or promote our products or income opportunity at informal and formal gatherings for the barter or sale of goods including but not limited to flea markets, swap meets, garage sales, or street markets. 6.6 Unsolicited Activities The following activities are prohibited: Automatic calling devices or “boiler room” operations, unsolicited E-mail Broadcasts, Fax Broadcasts, or Electronic mail advertisement (e.g. spamming). 6.7 Release for use of Photo, Audio, or Video Image, and/or Testimonial Endorsement 6.7.1 As a Isagenix Associate or Preferred Customer, you grant to Isagenix, its successors, assignees, employees and agents,

the absolute and irrevocable right and permission, to reproduce, use, re-use, create derivative works, broadcast, rebroadcast, publish, or republish any such photos, audios, videos, or endorsements, in all or in part, individually or in conjunction with any other photograph, audio or video, or any other endorsement, in any current or future medium and for any purpose whatsoever, including (but not by way of limitation) marketing, advertising, promotion, and/or publicity; and to apply for copyright protection for such photograph, audio works and/or video works, in the original form or as republished, in the name of Isagenix , or in any other name as Isagenix may select. In addition, to the extent you own any right, title, or interest, including any copyrights, in any photograph, audio works, video works, audiovisual works, any endorsement, or any other original works of authorship in connection with Isagenix products, services, or business, you shall promptly assign any and all such rights, title, and interest to Isagenix, and you shall assist Isagenix to obtain copyright protection or other forms of protection for such assigned rights, title, and interest. Regardless of any other agreements or contracts you may have with any other entity, you agree that any use by Isagenix as set forth in this section shall be royalty free and not subject to any other claim. You agree to defend and indemnify Isagenix against any claims by any other party arising out of Isagenix use of the rights granted herein.

6.7.2 You confirm that the information you give as a testimonial endorsement, or as represented in a photograph, video or

audio is true and accurate to the best of your knowledge. You waive any right you may have to inspect, approve or revoke the finished or unfinished product(s), the advertising copy, printed, recorded, photographic or video matter that may be used in connection with it or any use that may be made of it.

6.7.3 You agree to release and discharge Isagenix, and its successors, assignees, employees, and agents, from any and all liability, claim and/or demands arising out of or in connection with the creation and the use of any photograph, video, audio or endorsement, including any claim for slander or defamation.

6.7.4 All testimonials and images associated with such testimonials are the property of Isagenix and the individual who gave the testimonial. If an Independent Associate wishes to use a testimonial in an approved website or marketing material they must receive prior written permission from Isagenix and the testimonial giver.

6.7.5 Testimonials include all testimonials distributed by Isagenix on any Isagenix website or Isagenix marketing materials.

6.8 Compliance Review

6.8.1 If an Independent Associate wishes to use a mode of advertising their Isagenix business outside of the approved marketing materials and replicated website the Independent Associate must receive written approval from the Isagenix Compliance Department prior to printing or posting such advertisement, copy or any other discussion or claims regarding Isagenix, the products or the income opportunity.

6.8.1.1 Modes of advertisement referred to in this section include but are not limited to: posting on MySpace, YouTube, eBay, or Craigslist, posting on Blogs and Forums, producing print and other multimedia

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marketing materials, and Team Building Websites.

6.8.2 The Independent Associate may only utilize such advertising medium when they receive written notification directly from the Isagenix Compliance Department.

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SECTION 7: Organizational Reports and Commission Statements

At Isagenix we have set up unique and intricate systems to track all of your business activities. In that way we can provide you with the best and most up-to-date analysis of how your business is doing. At the same time that means that we are always able to provide you with your earned commissions promptly and efficiently.

7.1 Adherence to the Isagenix Team Compensation Plan

7.1.1 Associates must adhere to the terms of the Isagenix Team Compensation Plan as set forth in official Isagenix literature. Associates shall not offer the Isagenix opportunity through or in combination with, any other opportunity or unapproved method of marketing. Associates shall not require or encourage other current or prospective Customers or Associates to participate in Isagenix in any manner that varies from the program as set forth in official Isagenix literature. Associates shall not require or encourage other current or prospective Customers or Associates to execute any agreement or contract other than official Isagenix agreements and contracts in order to become an Isagenix Associate or Preferred Customer. Similarly, Associates shall not require or encourage other current or prospective Customers or Associates to make any purchase from, or payment to, any individual or other entity to participate in the Isagenix Team Compensation Plan, other than those purchases or payments identified as recommended or required in official Isagenix literature. Manipulation of the Isagenix Team Compensation Plan in any form is strictly prohibited and is grounds for immediate termination. Service to determine regularly scheduled tour dates and times.

7.1.2 Commission payments and other bonuses, as well as all other monies paid by the Company to the Associate, are based on the calendar week, beginning at 12:00 AM New York, USA time Monday of each week. Orders must be received at the Company's order department by the last working day (non-holiday weekday) of the week so as to be credited to that week, unless placed through your Associate Back Office, which allows you to enter orders up to 11:59 PM, New York, USA time on Sunday.

7.1.3 Isagenix’ computer system tracks your volume and that of your entire down-line, world-wide, and once a week, on or before the Tuesday of the week following the period end, updates all invoices, commission and bonus payments, organizational reports and the latest information on Isagenix’ products and the company directly in your Associate Back Office. In the event that an Associate resigns or is terminated, Isagenix maintains the right to hold any forthcoming commission, bonus or other payments for up to sixty (60) days, or until any outstanding matters are resolved to Isagenix' satisfaction.

7.2 Organizational Reports

All Associates receive access to an Associate Back Office and have access to a level of reporting about their business through their Associate Back Office. In addition further detail is provided to qualified and approved 2-Star Golden Circle or above associates through the Associate Back Office on the Isagenix Web Site. Organizational Reports contain trade secret information, which is proprietary to Isagenix.

7.3 Commission Statements

Commission Statements generated for all active Associates receiving a commission and or bonus payment are placed into your Associate Back Office or e-mailed with the commission payment or confirmation addressed to the name of the registered Associate of the ID in question.

7.4 Commission Currency and Method of Payment

7.4.1 To ensure accurate and timely payment of commissions earned, Isagenix provides a number of different forms of

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receiving commission payments earned including electronic bank transfers, paper checks, and debit cards. The availability of each of these forms varies by market and is dependent on the forms available in your local market.

7.4.2 Commissions for sales volume and organizational activity in your local market are calculated and paid in your local currency unless otherwise stated by Isagenix.

7.4.3 Commissions for sales volume and organizational activity in markets other than your local market are calculated and paid in United States Dollars. For International Markets, commissions for sales volume and organizational activity will be converted and pain in local currency based on the fixed exchange rate.

7.5 Reporting and Resolving Problems and Errors

7.5.1 In the event an Associate has questions about or believes that any errors have been made regarding commissions, bonuses, Down-line Genealogy Reports, orders, or charges, the Associate must notify Isagenix within thirty (30) days of the date of the purported error or incident in question, ,Isagenix will not be responsible for any error, omission, or problem not reported within thirty (30) days.

7.5.2 If you have any questions regarding shipments, orders, commissions and bonuses, or the Isagenix Team Compensation Plan, please contact the Customer Service Department by notification through your ABO,l e-mail, telephone, or fax.

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SECTION 8: General Information

8.1 Referral Policy

Occasionally, potential customers will contact Isagenix directly. Every effort will be made to determine the source of the referral and to give proper credit to the referring Independent Associate. If the prospect has not already spoken to an Independent Associate, we will forward the information about the prospect to those that have chosen to participate in a Lead Generation Program. We will attempt to distribute all leads according to the terms of any Leads Distribution Program then in effect. This policy does not apply to any special lead or referral promotions that Isagenix may sponsor.

8.2 Position Holder Access to the Isagenix Office

You may access our offices during normal business hours. Those wishing to tour Isagenix Offices should contact Customer Service to determine regularly scheduled tour dates and times.

8.3 Employee Opinions or Representations

From time to time, Position Holders ask Isagenix employees for opinions regarding the meaning of policies, qualifications for commissions, placement or sponsorship changes, downline positioning, etc. Employees may not give their opinions or interpretations of the Isagenix Policies and Procedures. We are not liable for any such opinions or representations, and you are not authorized to rely on them. You can only rely on our current Policies and Procedures.

8.4 Isagenix Contact Information -USA Department Phone Fax Email

Home Office 480-889-5777, Fax 480-726-8751, E-Mail [email protected] General Questions 480-889-5777, Fax 480-726-8751, E-Mail [email protected] Commissions 480-889-5777, Fax 480-726-8751, E-Mail [email protected] Compliance 480-889-5777, Fax 480-726-8751, E-Mail [email protected] Customer Service-U.S., Canada 480-889-5777, Fax 480-726-8751, E-Mail [email protected] Customer Service – Spanish 480-889-5788, Fax 480-726-8751, E-Mail [email protected] Customer Service – Hong Kong 852-2779-0222, Fax 852-2779-2111, E-Mail [email protected] Customer Service – Taiwan 886-2-8758-2861, Fax 886-2-8758-2859, E-Mail [email protected] Customer Service – Puerto Rico 787-788-3889, Fax 787-788-6026, E-Mail [email protected] Customer Service – Australia/New Zealand 61-2-8705-8900, Fax 61-2-8705-8999, E-Mail [email protected] IsaNews 480-889-5747, Fax 480-889-5761, E-Mail [email protected] Marketing 480-889-5747, Fax 480-889-5761, E-Mail [email protected] Order Line – Toll Free 877-877-8111, Fax 480-726-8751, E-Mail [email protected] Product or Doctor Questions 480-889-5747, Fax 480-726-8751, E-Mail [email protected] PR/News Media Inquiries 480-889-5747, Fax 480-889-5761, E-Mail [email protected] Returns 480-889-5749, Fax 480-726-8751, E-Mail [email protected] Sponsor Moves 480-889-5777, Fax 480-726-8753, E-Mail [email protected]

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SECTION 9: Disciplinary Actions and Dispute Resolution

9.1 Disciplinary Actions

9.1.1 If you violate any of the Policies and Procedures OR engage in any illegal, fraudulent, deceptive, or unethical business conduct, we may, at our sole discretion, invoke any disciplinary actions that we deem appropriate. Among the potential disciplinary actions are:

9.1.1.1 Issuance of a written warning or admonition. Imposition of a fine, which may be imposed immediately or withheld from future bonus or commission checks.

9.1.1.2 Reassignment of all or part of your downline organization.

9.1.1.3 Adjustment of your Independent Associate or Preferred Customer status.

9.1.1.4 Suspension, which may result in termination or reinstatement with conditions and/or restrictions.

9.1.1.5 Termination of your Independent Associate or Preferred Customer position.

9.1.1.6 We will use our best efforts to first give you notice of the alleged violation, by notice to current email address on file, and allow you to present facts that show that there has been no violation. However, if we believe that the violation is of a serious nature, we reserve the right to make our determination and take action without prior notice.

9.1.1.7 If you attempt to circumvent the Policies and Procedures to accomplish something indirectly that has been directly prohibited, you will be disciplined as if the applicable policy had been directly violated.

9.2 Suspension or Termination

9.2.1 You are not required to make any purchase in order to become an Independent Associate or Preferred Customer, other than an annual administrative fee. You are not encouraged to maintain an inventory of any kind in order to become or succeed as an Independent Associates or to be a Preferred Customer. Either party may terminate this agreement at any time by giving written notice of termination to the other party.

9.2.2 We may suspend or terminate your Associate or Preferred Customer status as a corrective measure for any activity by you that, in our sole judgment, constitutes a violation of the Independent Associate or Preferred Customer Application and Agreement, or any violation of the Policies and Procedures. Whenever there is a complaint or evidence of a prohibited activity, generally, we will contact you to let you know that we suspect a violation of a Company Policy or Procedure. We will generally offer you an opportunity to present facts that would show that you have not violated the Policy or Procedure. We reserve the right to make the final determination as to whether the Policy or Procedure has been violated and our decision is final and may not be appealed.

9.2.3 If we determine that suspension is an appropriate remedy, it could include any or all of the following:

9.2.3.1 All bonuses, commissions, prizes or recognition could be withheld.

9.2.3.2 You could be restricted from participating in any Isagenix activity, promotion, event or contest even if the qualification period for such event was prior to the suspension.

9.2.3.3 You could be excluded from participating in any Isagenix meetings, training or corporate sponsored events even if the qualification period for such events was prior to the suspension.

9.2.4 If we determine that termination is the appropriate remedy, you must immediately quit representing yourself as an Isagenix Independent Associate.

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9.2.5 After termination, you will still be liable for any compensation or bonus deductions that you would have had to pay as the result of any Buy-Backs or returns that occur in your downline. If we have to file a lawsuit to collect those amounts, you agree to pay any collection and legal costs that we incur. We may also notify credit-reporting agencies of any delinquency.

9.2.6 If you are suspended or involuntarily terminated you will not be eligible for reinstatement or have the opportunity to hold any

Associate, retail or Preferred Customer position.

9.2.7 Any earnings or commissions withheld because of a Position Holder’s suspension or termination will not be retroactively paid to the Position Holder.

9.3 Grievances and Complaints

When an Independent Associates or Preferred Customer has a grievance or complaint with Isagenix or another Position Holder regarding any practice or conduct in relation to the Isagenix business, the complaining individual should first report the problem to his or her upline sponsor who should review the matter and try to resolve it with the other party’s upline sponsor. If the matter cannot be resolved, it must be reported in writing to the Chief Compliance Officer at Isagenix. The Chief Compliance Officer will review the facts and attempt to resolve it. If it is not resolved, it will be referred to the Dispute Resolution Board for final review and determination.

9.4 Dispute Resolution Board

9.4.1 The purpose of the Dispute Resolution Board (“DRB”) is to (1) review appeals of disciplinary sanction; and (2) review matters between Isagenix Position Holders. After the response or settlement instituted by Compliance has been denied or otherwise remains unresolved, the DRB reviews evidence, deliberates, and responds to current outstanding issues on a collective basis.

9.4.2 A Position Holder may summit a written request for telephonic or in-person hearing within seven (7) business days from the date of: (1) the written notice by Isagenix of disciplinary action; or (2) the written decision of Compliance regarding disputes between Position Holders. All communication with Isagenix and the Position Holder seeking resolution of a dispute must be in writing. It is within the DRB’s discretion whether a claim is accepted for review. If the DRB agrees to review the matter it shall schedule a hearing within thirty (30) days of receipt of the Position Holder’s written request. All evidence (e.g., documents, exhibits, etc.) that an Associate desires to have considered by the DRB must be submitted to Isagenix no later than seven (7) business days before the date of the hearing. The Position Holder shall bear all of the expenses related to his or her attendance and the attendance of any witnesses he or she desires to be present at the hearing. The decision of the DRB will be final and subject to no further review. During the pendency of the claim before the DRB, the Position Holder waives his or her right to pursue arbitration or any other remedy.

9.4.3 If the Position Holder wishes to have a hearing in their absence, following issuance of a sanction, the disciplined Position Holder may appeal the sanction to the DRB. The Position Holder’s appeal must be in writing and received by Isagenix within fifteen (15) days from the date of Isagenix’s notice of disciplinary action. If the appeal is not received by Isagenix within the fifteen (15) day period, the sanction will be final. The Position Holder must submit all supporting documentation with his or her appeal correspondence. If the Position Holder files a timely appeal of the disciplinary action, the DRB will review and reconsider the sanction, consider any other appropriate action, and notify the Position Holder in writing of its decision. During the pendency of the claim before the DRB, the Position Holder waives his or her right to pursue arbitration or any other remedy.

9.5 Arbitration and Governing Law

9.5.1 Any controversy or claim arising out of, or relating to, this Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. If an Independent Associate, Retail or Preferred Customer files a claim or counterclaim against Isagenix, he or she may only do so on an individual basis and not with any other individual or as part of a class or consolidated action. You waive all rights to trial by jury or to any court. All arbitration proceedings shall be held in the County of Maricopa, State of Arizona, unless the laws of the state in which you reside expressly require the application of its laws, in which the case the arbitration shall be held in the capital of that state. Louisiana resident Position Holders may

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choose to arbitrate in Louisiana using Louisiana law. All parties shall be entitled to all discovery rights pursuant to the Federal Rules of Civil Procedure. There shall be one arbitrator, an attorney at law, who shall have expertise in business law transactions with a strong preference being an attorney knowledgeable in the direct selling industry, selected form a panel which the American Arbitration Panel provides. Each party to the arbitration shall be responsible for its own costs and expenses of arbitration, including legal and filing fees. The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to a judgment in any court of competent jurisdiction. This agreement to arbitration shall survive any termination or expiration of the agreement. Nothing in these policies shall prevent Isagenix from applying to and obtaining from any court having jurisdiction a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction or other relief available to safeguard and protect Isagenix’s interest prior to, during or following the filing of any arbitration or other proceeding or pending the rendition of a decision or award in connection with arbitration or other proceeding.

9.5.1.1 This section shall not apply to violations of internet and intellectual property policies including but not limited to: selling Isagenix products on the internet, cybersquatting, registering Isagenix trademarks or confusingly similar domain names, and producing Isagenix merchandise. Isagenix reserves the right to pursue all legal remedies afforded by law in relation to these violations including full utilization of the judicial system.

9.5.2 If the laws of any jurisdiction impose any requirement that is different from or in addition to those set forth in these Policies and Procedures, then the Policies and Procedures shall be deemed amended in conformance with those laws as to that jurisdiction only.

9.5.3 Both parties agree that the existence of or any information coming out of arbitration or litigation is confidential and is only to be disclosed on a “need to know” basis. Both parties agree not to disclose the outcome of the proceeding or matters relating thereto without the prior written consent of the other party which consent shall not be unreasonably withheld. Violation of this provision will result in the immediate termination of the Associate.

9.6 Check Re-Issuance

If Isagenix must re-issue a check or credit to a check card after the first issuance the Position Holder will be assessed a HK$200 re-issuance fee.

9.7 Isagenix Website

Isagenix does not warrant that any websites operated, sponsored or hosted by Isagenix of any of its affiliates (collectively, the “Websites”) will be uninterrupted or free from error. The websites, their use, and the services that they perform are provided “as is”, I without warranty of any kind, either express or implied. Specifically, Isagenix disclaims any warranties, including, but not limited to (i) any warranties concerning the availability of any website or any content therein, or any warranties concerning access to any website; (ii) any warranties of non-infringement; or (iii) any warranties of merchantability or fitness for a particular purpose.

9.8 Ambiguities

In the event an ambiguity is found in this document, the ambiguity will not be interpreted against the drafter.

9.9 DISCLAIMER OF WARRANTIES

PPRODUCTS, DOCUMENTATION, AND MATERIAL: THE PRODUCTS AND ANY SALES, PROMOTIONAL, OR OTHER DOCUMENTATIONS OR MATERIALS IN ANY FORM FURNISHED IN CONNECTION WITH THE PRODUCTS ARE PROVIDED “AS IS.” ISAGENIX SPECIFICALLY DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED, IN CONNECTION WITH SUCH PRODUCTS, DOCUMENTATION, AND MATERIALS, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

9.10 EXCLUSION OF DAMAGES

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IN NO EVENT SHALL ANY ISAGENIX OFFICER, DIRECTOR, EMPLOYEE, AFFILIATES, SUCCESSORS, OR ASSIGNEES BE LIABLE TO ANY INDEPENDENT ASSOCIATE FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES, FOR ANY CLAIMS OR ACTIONS RESULTING FROM OR ARISING OUT OF THIS AGREEMENT, THE FUNCTIONALITY OR OPERATION OF ANY WEBSITES (OR SUCH WEBSITE’S FAILURE TO FUNCTION TO OPERATE), OR ANY ACTS OR OMISSIONS OF ANY ISAGENIX PARTY, WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, OR ANY OTHER CAUSE OF ACTION.

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SECTION 10: Company Refund Policy

10.1 For Retail Customers and Preferred Customers

10.1.1 Retail customers have 30 days from the invoice date of their order to initiate a return for a refund of:

10.1.1.1 Any item(s) in the order. This is a one-time, no questions asked allowance.

10.1.1.2 Any consumable item in the order that they are trying for the first time. This applies to any order that they place.

10.1.1.3 Shipping and handling costs are non-refundable.

10.1.2 When you, as an Associate, sell products at retail, you are the primary party responsible for customer satisfaction. The retail customer must come to you for either a replacement product or for a refund. You make the product exchange or refund, and then you obtain replacement product from Isagenix for the returned product.

10.1.3 You must notify the Returns Department. A Return Merchandise Authorization (RMA) Number will be issued.

10.1.4 In all cases Isagenix must be provided with: proper notice, proof of purchase and timely return of the product.

10.1.5 In the event of a dispute between you and your retail customer, Isagenix will determine the facts and attempt to resolve the issue. That resolution will be final and not appealable. If we elect to make a cash payment to the retail customer to resolve the dispute, we will charge the payment to your account.

10.1.6 If your retail customer wants to make a product return under the Retail Guarantee, follow this procedure:

10.1.7 Write up a regular retail sales slip for the product refund, enter the date and price the customer actually paid and write “refund” across the face of the order.

10.1.7.1 Refund the money to the customer and have the customer sign the refund sales slip.

10.1.7.2 Contact the Returns Department, via e-mail or fax, and obtain a Return Merchandise Authorization (RMA) Number.

10.1.7.3 Attach a copy of the refund sales slip to the original sales slip and send it to Isagenix with your next wholesale order. Be sure to put the RMA number on the shipping label.

10.1.8 If the procedure above has been followed, you can expect to receive the replacement product within thirty (30) days of receipt of the returned product.

10.1.9 If the product was sold to and shipped directly by Isagenix to your Customer, the Customer may contact us directly for return authorization and replacement/refund of the purchase. Customer should allow thirty days for processing of the refund.

10.1.10 We reserve the right to reject repetitive returns or replacements.

10.1.11 All sales of literature are final and are not refundable.

10.2 Refund and Replacement for Associates

10.2.1 When you, as an Associate, make an authorized product replacement or refund under the Retail Customer Guarantee, we will provide you with the replacement product as outlined above. You may then either provide the replacement product to your retail customer, or if a refund was made, you can sell the replacement product.

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10.2.2 Product that is determined to be defective will be promptly replaced without charge.

10.2.3 A Position Holder may return their initial purchase of one or more of the Optional Product Introductory Paks ordered

at the time of their initial signup under the above 30 Day Retail Customer Product Satisfaction Guarantee for a refund of full product cost. Shipping, handling, membership or administration costs are non-refundable. An Independent Associates wishing to leave the Isagenix Business are covered by our Buy-Back Policy for unused, unopened, resalable product. As a Preferred Customer, in the event that you have over purchased product you may return the unused/unopened product under the Buy-Back Policy. You are responsible for all shipping expensed incurred for the return, except in the case of a return of defective product.

10.2.4 If the Independent Associate makes a return of a second (2nd) order they will be refunded seventy percent (70%) of the full product cost.

10.3 Buy-Back Policy for Associates and Preferred Customers

10.3.1 The Isagenix Buy-Back policy is meant to protect individuals who want to leave the Isagenix opportunity and believe they mistakenly purchased more inventory than they could use or sell Preferred Customers who may have over purchased and no longer wish to use the product. These policies specifically do NOT apply to an Independent Associate who, for the purpose of qualifying for a bonus or some other benefit, has falsely certified that the inventory for which they are attempting to receive a refund has been previously sold.

10.3.2 If you desire to terminate your Independent Associate or Preferred Customer Position through the Buy-Back policy, you must notify Isagenix in writing. You must send Isagenix a letter listing all the products you intend to return, the amount of each product and the original order number under which you purchased the products. The letter must be signed by all persons listed on the Associate Agreement and must state your intentions to relinquish all present and future commission rights.

10.3.3 The request for a Buy-Back must be made within 12 months of the product’s original purchase date. Reimbursement will be made for the value of the original order less a 10% restocking charge, freight, rebates, bonuses and personal discounts. Isagenix will be liberal in its application of the Buy-Back policy on termination of an Independent Associate or Preferred Customer Position, but Isagenix reserves the right to not repurchase products or issue refunds on products certified as having been consumed or sold.

10.3.4 We reserve the right to not repurchase products or issue refunds on products certified as having been consumed or sold under the 70% Resale Rule. Falsely representing the amount of product sold or consumed in order to advance in the marketing plan will be grounds for termination.

10.3.5 Upon receiving a Buy-Back letter, Isagenix will contact the terminating Independent Associate or Preferred Customer with the specifics of the return process. All products returned for Buy-Back must be in their original packaging, unopened and in resalable condition. Products that have been discontinued, whose discontinuance has been announced, or that were sold as non-returnable, seasonal or promotional items are not eligible for a Buy-Back. Once Isagenix has verified that the product has been received in reusable and resalable condition and the Buy-Back process is completed, a refund will be issued and the Associate or Preferred Customer Position terminated. Associates should allow at least 30 days for any refund to be processed.

10.3.6 The re-purchase price of the last order placed will be not less than 90 percent of the original net cost you paid. Net cost does not include shipping and handling or administrative fees.

10.3.7 Items are deemed resalable or reusable if they are returned within one (1) year of the date of purchase, are unused and in their original packaging. Items that have been discontinued, or are within six (6) months of expiring, are not considered to be resalable. Items that do not have current labels are deemed not resalable. Any damages to the product, as the result of mispackaging or improper shipping for the return shipment shall be your sole responsibility.

10.3.8 All bonuses, compensation and recognition or advancement received as a result of the original purchases will be reversed and the amounts deducted from the refund and/or the upline’s compensation. You should notify your upline sponsor of your intention to terminate your Associate Position.

10.3.9 Should Isagenix have reason to believe that there have been activities harmful to Isagenix or its Position Holders, Isagenix reserves the right to stop or delay the Buy-Back process until such time as it has determined what, if any, actions have taken place. Should Isagenix determine to exercise this right, we will first inform you that an investigation is in process.

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10.3.10 Literature sales are final and are not refundable. In addition, all membership administration fees are non-refundable.

10.4 Loss of Commissions, PV and BV

If a Position Holder takes advantage of the return, refund, or buy back program Isagenix will recoup any commissions or other compensation paid when the product that generated that compensation is returned. Isagenix will as well deduct all BV and PV accumulated from the order of such products. In order to do so, we may deduct the outstanding amount prior to paying you any further commissions. If your bonus check is insufficient to allow us to recover the compensation through a deduction, you agree to repay Isagenix the amount due.

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Appendix A: Glossary Associate Back Office – Associates log in to their Back Office via the Replicated website to access Library, Tools, sign up,

genealogy trees, invoices, etc. The ABO is provided to all Associates for the purpose of running your Isagenix business.

Associate Replicated Website – One of two Isagenix approved websites, used to send potential customers to for their

purchases or new member sign ups.

Auto Renewal – The renewing of your Associate or Preferred Customer membership on an Annual basis, using the last form

of payment used. The Auto Renewal occurs on your Anniversary date, and only if you have placed an order in the last 90

days prior to your Anniversary date.

Autoship – A recurring shipment of product that is shipped out every 30 days.

Business Entity – Any type of business authorized under the laws of the jurisdiction in which it was organized to run as a business. This includes, but is not limited to, corporations, partnerships, trusts, and limited liability companies. Check Flashing – Making a statement or showing your commission check in which you claim actual earnings Cross line sponsoring – Sponsoring an Associate who already holds a position in one line of the genealogy tree in to another line of the genealogy tree. Independent Associate – A position held in the genealogy tree that allows the Associate to purchase wholesale and participate in the Compensation Plan. IsaLeads – One of two Isagenix approved websites, used for collecting Leads that are looking to purchase product or sign up. Online Auction – Online auctions may include, but are not limited to eBay, UBid, Buy It Now, eBay stores, eBay express, WeBidz. Placement Change -Any move made within a tree that changes the placement or sponsorship of an Independent Associates personally enrolled. Position Holder – A Position Holder is the spot in the Genealogy tree that the account is created in. Preferred Customer – A position held in the genealogy tree, that allows the Associate to purchase wholesale, but does not allow them to participate in the Compensation Plan. For a full description, please see Section 3.6. Primary Position – This is the first account that the Position Holder sets up in our Genealogy tree. Re-Entry Position – Upon reaching certain criteria, a Position Holder may be eligible for a Re-entry Position in the Genealogy tree. This Re-Entry Position is created and placed directly above the Primary Position, thus causing the Primary Position to be placed directly below the Re-Entry Position. Retail Customer – A non-Associate that purchases product at retail pricing. The Associate receives retail profit from these sells. Spam – A disruptive, commercial message posted on a computer network or sent as an e-mail. Sponsorship – Any new Preferred Customer or Independent Associate that you personally enrolled. Tradeshow – or trade fair is an exhibition organized so that companies in a specific industry can showcase and demonstrate their new products and services. Some trade fairs are open to the public, while others can only be attended by company representatives (members of the trade) and members of the press, therefore tradeshows are classified as either "Public" or "Trade Only". There are currently over 2500 trade shows held every year in U.S. alone.