Independent Associate and Preferred Customer Policies & Procedures Taiwan page 1

Transcription

1 page 1 Policies & Procedures Taiwan TW-EN

2 Contents SECTION 1 : Introduction Scope and Applicability Amendments Invalid Terms Waiver Company Use of Applicant Information Survival of Terms...2 SECTION 2 : Isagenix Position Holder Code of Ethics 3 SECTION 3 : Your Relationship with Isagenix Becoming An Independent Associate Independent Contractor Indemnification Position Holder Eligibility and Restrictions Preferred Customer Program Annual Renewal Change of Sponsorship/Placement Change Re-Entry Selling or Changing Your Isagenix Position Professional Practitioners International Sponsorship Terminating Your Isagenix Position, Re- Enrolling... 9 SECTION 4 : Ordering, Purchasing and Reselling Products Initial Purchase Inventory Purchases Payment Cut-Off Date for Orders Order Confirmation Autoship Resale of Product Retail Direct Customer Sales Tax...13 SECTION 5 : General Operational Policies Out-of-Market Sales Confidential Information Cross Sponsoring/Other Business Opportunities Cross-line Raiding Phantom or Ghost Associates Income Claims Product Claims Product Pricing SECTION 6 : Advertising and Use of Company Name Use of Trademarks, Copyrighted Materials and Intellectual Property Internet and Web Site Policy...18 SECTION 6 : Advertising and Use of Company Name Marketing/Promoting Your Business (Telephone, Business Title, News Media and Print Advertisement) Repackaging Products Trade Shows Unsolicited Activities Release for use of Photo, Audio, or Video Image, and/or Testimonial Endorsement Compliance Review SECTION 7 : Organizational Reports and Commission Statements Adherence to the Isagenix Team Compensation Plan Organizational Reports Commission Statements Commission Currency and Method of Payment Reporting and Resolving Problems and Errors 23 SECTION 8 : General Information Referral Policy Position Holder Access to the Isagenix Office Employee Opinions or Representations Isagenix Contact Information - Phone Fax SECTION 9 : Disciplinary Actions and Dispute Resolution Disciplinary Actions Suspension or Termination Grievances and Complaints Dispute Resolution Board Arbitration and Governing Law Check Re-Issuance Isagenix Website Ambiguities DISCLAIMER OF WARRANTIES EXCLUSION OF DAMAGES...28 SECTION 10 : Company Refund Policy For Retail Customers Replacement for Associates and Preferred Customers Buy-Back Policy for Associates and Preferred Customers (Rescission or Termination / Refund) Loss of Commissions, PV and BV...32 Appendix A : Glossary 33 Taiwan Supplement 34 Attachment to Taiwan Supplement: Applicable Laws of Multi-Level Marketing 37

3 page 1 page 2 SECTION 1 : Introduction 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 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, 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 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.

4 page 3 page 4 SECTION 2 : Isagenix Position Holder Code of Ethics SECTION 3 : Your Relationship with Isagenix 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 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 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 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 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 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, 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 I will not enter into, participate in, tolerate any scheme or provide any opinions or advice aiming to obtain bonuses, rewards, promotion, ranking or any other chances to gain benefit or profit through using the Isagenix position. I will only participate in the opportunities provided by Isagenix with my passion as well as buy the products of Isagentix with my sincerity. Isagenix is entitled to withdraw or drawback any bonuses or recognitions at any time if Isagenix finds any misinterpretation on the registration. Also, Isagenix is entitled to suspend or drawback any qualification for application because of the misinterpretation. 3.1 Becoming An Independent Associate 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 Social Security or Federal Tax ID number where applicable. You must certify under the penalty of law that the Tax ID number and valid personal identification submitted to the Company is correct. Isagenix will provide the required 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 appropriate tax authorities. 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 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 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 Isagenix may need to contact you periodically and an address is the most efficient method for Isagenix to reach you. Should you choose to provide Isagenix with an address it must be valid and it is your duty to update your information in our records with your most recent address. As a Position Holder you are not required to provide Isagenix with an address but you will not receive notifications of items including but not limited to changes to your account or Autoship notifications 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 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 self-employment taxes, federal income taxes and any other taxes or financial obligations required by law. You must obey any federal, state, and local 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 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.

5 page 5 page 6 SECTION 3 : Your Relationship with Isagenix SECTION 3 : Your Relationship with Isagenix 3.3 Indemnification 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 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 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 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 the United States is eighteen (18) years old. Legal age may vary per country/province/state 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 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 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 Unincorporated Businesses (Proprietorships) with unique IRS issued taxpayer identification numbers (not the social security number of the proprietor,) where applicable, may become an Independent Associate. Proof of the issuance of the taxpayer identification number must be submitted to Isagenix 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 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. 3.5 Preferred Customer Program The Preferred Customer Program is for a person who wishes to purchase Isagenix products,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 As a Preferred Customer you will occupy a position in the Isagenix marketing organization structure. As a Preferred Customer, you should typically purchase Isagenix products only for personal or family use and not purchase more than you could reasonably consume in one month. Preferred Customers are not eligible to participate in the Compensation Plan and may not resell products or make purchases to help others resell products, except for purposes of achieving the minimum sales requirement for becoming an associate complete and submit an Independent Associate Application and Agreement. A Preferred Customer may choose to participate in the Compensation Plan at any time, and be eligible to purchase Isagenix products at wholesale prices as a consumer, by becoming an Associate as provided in Section 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 To be eligible to convert your Preferred Customer position to an Associate position, a Preferred Customer must achieve a minimum sales volume requirement of at least 300 BV over the previous 60 day period and complete and submit 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 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. Isagenix will only automatically renew your account if you have made a purchase on that account within the 90 days prior to your renewal date. If you are a Preferred Customer wishing to convert your status to that of Associate after achieving a minimum sales volume requirement of at least 300 BV during the previous 60 day period, and within 12 months of becoming a Preferred Customer, 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.

6 page 7 page 8 SECTION 3 : Your Relationship with Isagenix SECTION 3 : Your Relationship with Isagenix 3.7 Change of Sponsorship/Placement Change 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 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. (see Section 3.12 for requirements for re-enrollment) Re-enroll with Isagenix in another position provided he or she has been inactive (no product orders, no enrollments, no position renewals, and no business activity with respect to the existing position) for at least six months before the date of reenrollment 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 Once you have relinquished a position you have no rights to any of the position holders in your previous downline in accordance with Section If you change your mind relinquishing your position, you can still reactivate your account by loging in your back office (ABO) and place an order. Please note that when you decide to place an order, your original account will not be released, and because the new open position generated which will postponed the deadline of your rejoining 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 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 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 $25 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 $100 fee If the Position Holder has a downline the Placement Change will require management approval and will be assessed a $100 fee 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 and Re-Entry 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 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 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. 3.9 Selling or Changing Your Isagenix Position 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 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 paidas 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 Professional Practitioners 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 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 subgroups To qualify as a Professional Practitioner the Position Holder must provide proof of professional certification or professional licensing, proof of a business license for each location, a letter from the I.R.S. with the EIN or TIN for each location, and the articles of incorporation The Subsequent transfer of a specific location will be handled on a case by case basis subject to review by Isagenix Compliance.

7 page 9 page 10 SECTION 3 : Your Relationship with Isagenix SECTION 3 : Your Relationship with Isagenix 3.11 International Sponsorship Isagenix offers International Sponsorship to its 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 Terminating Your Isagenix Position, Re-Enrolling As an independent contractor, you may maintain or terminate your position as you deem fit; however, Isagenix does not permit a Position Holder to re-enroll in or take an ownership interest in another position with Isagenix after terminating his or her position in Isagenix unless the Position Holder meets certain conditions designed to protect the integrity of the downline organization. The conditions on reenrolling depend on whether the Position Holder making the request to re-enroll is: (1) a Preferred Customer or a wholesale customer as defined in Section 3.4 & 3.5 (2) an Associate that has not yet: (a) earned the equivalent of at least 10 cycles in any commission week; or (b) achieved a rank of at least One Star; or (c) an Associate that has earned the equivalent of at least 10 cycles in any commission week or achieved a rank of at least One Star Preferred Customers and Wholesale Customers. A Position Holder that has enrolled with Isagenix as a Preferred Customer or as a wholesale customers as defined in Section 3.4. may re-enroll with Isagenix in another position provided he or she has been inactive (no product orders, no enrollments, no position renewals, and no business activity with respect to the existing position) for at least six months before the date of re-enrollment Associates Ranked Below One Star. A Position Holder that has earned a commission with Isagenix but has not earned the equivalent of at least 10 cycles in any commission week or achieved a rank of at least One Star may re-enroll with Isagenix in another position provided he or she has voluntarily terminated his or her position or has not renewed his or her position and has been inactive, as defined in Section , for at least 12 months following voluntary termination of his or her position or allowing his or her position to go into non-renewed status Associates Ranked One Star or Higher. A Position Holder that has earned the equivalent of at least 10 cycles in any commission week or has achieved rank of at least One Star may re-enroll with Isagenix in another position provided he or she has voluntarily terminated his or her position or has not renewed his or her position and has been inactive, as defined in Section , for at least 18 months following voluntary termination of his or her position or allowing his or her position to go into non-renewed status To voluntarily terminate your position, you must notify the Isagenix Compliance Department in writing. The required period of inactivity will begin on the date we receive the notice in writing If you voluntarily terminate your position, during the applicable period of inactivity described above, you will not be eligible to order product or earn commissions in the Isagenix Compensation Plan Whether or not you meet the conditions to re-enroll in another position with Isagenix, you may not recruit any Position Holders in your previous downline organization to another organization, even if you personally enrolled that Position Holder. Contacting Position Holders in your current or previous organizations with the intent to persuade any of those Position Holders to join another organization is considered a violation of the cross-line raiding provision of Section If your request for re-enrollment is approved, you must move to the bottom of the new organization you are joining unless Isagenix approves another placement that it believes is in the best interest of the organization Because we permit spouses to hold separate positions so long as they are in the same line of sponsorship (see Section 3.4.2), a Position Holder whose spouse holds a separate position may not terminate his or her position and re-enroll in another position as contemplated by Section unless his or her spouse also meets the conditions set forth in Section The status of the Position Holder for purposes of determining the conditions to be satisfied in Section will be based on the status of the Position Holder with the higher ranking at the time of the request A Position Holder may not establish a business entity or gain an ownership interest in a business entity that holds a position with Isagenix to circumvent the intent of this policy Isagenix strongly discourages termination of a position for the sole purpose of enrolling in another organization within Isagenix, and reserves the right to deny any request for reenrollment if it determines that, in its reasonable discretion, the voluntary termination and request to re-enroll in another position would adversely affect the integrity of the Isagenix Compensation Plan, including, among other reasons, that the request to re-enroll was due, directly or indirectly, to coaching or otherwise encouraging one or more Position Holders to join another organization.

8 page 11 page 12 SECTION 4 : Ordering, Purchasing and Reselling Products SECTION 4 : Ordering, Purchasing and Reselling Products 4.1 Initial Purchase You are required to purchase products to the amount of BV stipulated by Isagenix in the Enrolment Application and Agreement to be an Independent Associate and pay the Administrative Fee save and except when the same is waived by Isagenix. You are not required to purchase any products in order to be a Preferred Customer. Unless prohibited by law, you are required to pay an Administrative Fee at the time of enrolment. The Administrative Fee must be renewed annually and 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 websites provided by Isagenix. 4.2 Inventory Purchases 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 % 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 All orders must be accompanied by proper payment including all applicable shipping/handling fees and sales tax. 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 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. 4.5 Order Confirmation As a courtesy an order confirmation will be sent (if you have an address on file with Isagenix.) This confirmation 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 due to invalid address on file or for other failures of the Internet system. 4.6 Autoship 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 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 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 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 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 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. (NOTE: You may lose active status and benefits you receive as an associate when you terminate your Autoship order) Autoships may only be established or amended by the Independent Associate or Preferred Customer responsible for receipt and payment of these orders without exception Sponsoring Position Holders may not set up these types of ongoing orders on behalf of their new Independent Associate or Preferred Customer 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.

9 page 13 page 14 SECTION 4 : Ordering, Purchasing and Reselling Products SECTION 4 : Ordering, Purchasing and Reselling Products 4.7 Resale of Product 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 Isagenix products may not be sold through catalogues or other mass retail sales medium, infomercials or television, without the prior written approval of Isagenix 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 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.) Only Isagenix produced, or pre-approved literature, banners, or signage may be displayed on a shelf, counter, or wall 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 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 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: 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 The tax will be on the suggested retail price of any orders placed by an Associate for resale The tax will be on the actual sales price of any order placed by a retail customer using your site to order 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 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 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 Your Isagenix order screen will contain a check box next to each line item. You are responsible for checking or unchecking the box based on whether the order is being purchased for resale or for personal use 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.