POLICIES AND PROCEDURES FOR REPRESENTATIVES

Transcription

1 POLICIES AND PROCEDURES FOR REPRESENTATIVES TABLE OF CONTENTS ARIIX PRINCIPLES OF ETHICS... 1 SECTION 1 - CORPORATE VISION STATEMENT... 2 SECTION 2 - BILL OF RIGHTS... 2 ARIIX REPRESENTATIVES ARE ENTITLED TO THE FOLLOWING:... 2 SECTION 3 - INTRODUCTION PURPOSE OF THE REPRESENTATIVE AGREEMENT AND THE POLICIES AND PROCEDURES POLICIES AND PROCEDURES INCORPORATED INTO THE REPRESENTATIVE AGREEMENT CHANGES TO THE AGREEMENT PROVISIONS SEVERABLE DELAYS WAIVER RELIANCE ON PROFESSIONAL ADVISORS... 3 SECTION 4 - BECOMING A REPRESENTATIVE REQUIREMENTS TO BECOME A REPRESENTATIVE BUSINESS ORIENTATION SYSTEMS IDENTIFICATION NUMBER REPRESENTATIVE BENEFITS TERM AND RENEWAL OF AN ARIIX BUSINESS... 4 SECTION 5 - PAYMENT AND SHIPPING CREDIT AND DEBIT CARDS RESTRICTIONS ON THIRD PARTY USE OF CREDIT AND DEBIT CARDS SALES TAXES SHIPPING AND RISK OF LOSS... 5 SECTION 6 - PRODUCT GUARANTEES, RETURNS, AND INVENTORY REPURCHASE PRODUCT EXCHANGE GUARANTEE THIRTY DAY RETURN POLICY RETURNS BY RETAIL CUSTOMERS RETURNS BY PREFERRED CUSTOMERS RETURNS BY REPRESENTATIVES ALL OTHER RETURNS PROCEDURES FOR ALL RETURNS... 7 i

2 SECTION 7 - OPERATING AN ARIIX BUSINESS ADVERTISING Individually Created Marketing Materials Individually Created Training Materials Trademarks and Copyrights Media and Media Inquiries Unsolicited Unsolicited Faxes Telemarketing Telephone Directory Listings Television and Radio Advertising Advertised Prices Use of Name and Likeness ONLINE CONDUCT Individual Websites ARIIX Replicated Websites Registered External Website Content ARIIX Independent Representative Disclosure Registered External Websites Must Exclusively Promote ARIIX Registered External Website Termination Team Websites Domain Names, Addresses, and Online Aliases ARIIX Hotlinks Online Classifieds ebay and Taobao / Online Auctions Online Retailing Banner Advertising Spam Linking Digital Media Submission (YouTube, Facebook, Instagram, etc.) Sponsored Links / Pay-Per-Click Ads Social Media Sponsoring Online Online xoffice Access CONFLICTS OF INTEREST Non-solicitation Representative Participation in Other Network Marketing Programs Confidential Information Prior Agreements DECEPTIVE PRACTICES ADHERENCE TO LAWS AND ORDINANCES ii

3 7.6 - UNAUTHORIZED CLAIMS Indemnification Product Claims Income Claims Average Earnings Report GOVERNMENTAL APPROVAL OR ENDORSEMENT INTERNATIONAL MARKETING BULK PURCHASING REPACKAGING AND RE-LABELING PROHIBITED EXCESS INVENTORY AND BONUS BUYING DOWNLINE PURCHASING HOLDING APPLICATIONS OR ORDERS TARGETING OTHER DIRECT SELLERS CHANGE OF SPONSOR Conflicting Enrollments Misplacement Cancellation and Re-application Crossline Moving/Crossline Raiding WAIVER OF CLAIMS COMMERCIAL OUTLETS TRADE SHOWS, EXPOSITIONS, AND OTHER SALES FORUMS BUSINESS ENTITIES Changes to a Business Entity CHANGE OF ADDRESS, TELEPHONE, AND ADDRESS INCOME TAXES INDEPENDENT CONTRACTOR STATUS ONE ARIIX BUSINESS PER REPRESENTATIVE/MULTIPLE DISTRIBUTORSHIPS PER HOUSEHOLD ACTIONS OF HOUSEHOLD MEMBERS OR AFFILIATED PARTIES SALE, TRANSFER, OR ASSIGNMENT OF ARIIX BUSINESS SEPARATION OF AN ARIIX BUSINESS MERGING ARIIX BUSINESSES SUCCESSION Transfer Upon Death of a Representative Transfer Upon Incapacitation of a Representative SECTION 8 - RESPONSIBILITIES OF REPRESENTATIVES CONTINUING DEVELOPMENT OBLIGATIONS Ongoing Training Responsibilities Increased Training Responsibilities Ongoing Sales Responsibilities NON-DISPARAGEMENT/DEFAMATION iii

4 8.3 - PROVIDING DOCUMENTATION TO APPLICANTS SECTION 9 - SALES REQUIREMENTS PRODUCT SALES NO TERRITORY RESTRICTIONS SALES RECEIPTS FOR NON-ONLINE ORDERS SECTION 10 - BONUSES AND COMMISSIONS BONUS AND COMMISSION QUALIFICATIONS AND ACCRUAL ADJUSTMENT TO BONUSES AND COMMISSIONS Adjustments for Returned Products and Services Commission Payments Right of Offset UNCLAIMED BONUSES, COMMISSIONS, CREDITS, AND OTHER REMUNERATION REPORTS ERRORS OR QUESTIONS SECTION 11 - PRIVILEGES OF REPRESENTATIVES PARTNERS COUNCIL FOUNDERS CLUB SECTION 12 - DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS DISCIPLINARY SANCTIONS GRIEVANCES AND COMPLAINTS FOUNDERS CLUB REVIEW MEDIATION LITIGATION GOVERNING LAW, JURISDICTION, AND VENUE Louisiana Residents SECTION 13 - INACTIVITY AND CANCELLATION VOLUNTARY CANCELLATION CANCELLATION DUE TO NON-RENEWAL CANCELLATION DUE TO INACTIVITY INVOLUNTARY CANCELLATION EFFECT OF CANCELLATION EXCEPTIONS TO ACTIVITY REQUIREMENTS Military Deployment DEFINITIONS iv

5 ARIIX Principles of Ethics We care about you, and we care about your business. In fact, the major reason why ARIIX was created was to improve how Representatives within the direct sales industry are treated. So that you know the rights and privileges available to you as a Representative of ARIIX, we are putting them in writing. We base your rights and privileges on the following four principles of ethics. The first principle is Fairness. In order to enjoy a life-long relationship with you, we understand that we must treat each of our Representatives equally, regardless of any non-business related demographic, ethnic, or even organization size within ARIIX. The second principle is Respect. Fairness swings on the hinges of respect. If one lacks respect for another, the likelihood of fair and noble treatment is unlikely. We believe that fairness and respect go hand-in-hand and we're built on that belief. The third principle is Protection. These Policies and Procedures, as well as the Representative Agreement, exist to protect everyone who is involved with ARIIX, including Retail Customers, Preferred Customers, Members, Representatives, and the Company itself. Many issues (business, regulatory, legal) can hurt our businesses, including improper income claims or product claims, Crossline Raiding, and improper proselytizing to another direct selling opportunity. These Policies and Procedures, therefore, provide clear guidance about what activities are acceptable for the benefit of each individual while balancing the greater good of all. The fourth principle is Ownership. A distributorship is your business. It is your asset. This means you and your estate are entitled to the commissions it generates. We believe that your ownership must be free from the fear of arbitrary termination. Don t take our word for it. We challenge you to compare the rights, privileges, and protections that you receive from ARIIX with ANY policies and procedures within the direct sales industry. You will find that ARIIX embodies these Principles of Ethics better than any other direct selling organization. Our hope is that this document may be a catalyst for improving the rights of distributors everywhere. Your privileges are outlined below. 1

6 SECTION 1 - CORPORATE VISION STATEMENT ARIIX Corporate Vision Statement: Unleashing the Human Potential for Good. SECTION 2 - BILL OF RIGHTS ARIIX Representatives are entitled to the following: 1. You have the right to a Partners Council. 2. You have a right to share in profits. 3. You have the right to true ownership and protection. 4. You have the right to review changes to the Compensation Plan. 5. You have the right to submit ideas to management for consideration because ARIIX believes that you re the experts. 6. You have the right to ARIIX s loyalty. 7. You have the right to explanation and reasonable notice. 8. You have the right to share in the fun and incentives. 9. You have the right to help ARIIX think up what s next. 10. You have the right to fair and consistent treatment. 11. You have the right to maintain your original agreement. SECTION 3 - INTRODUCTION Purpose of the Representative Agreement and the Policies and Procedures The purposes of the Representative Agreement and the Policies and Procedures include the following: To assist Representatives in building and protecting their businesses; To protect ARIIX and its Representatives from legal and regulatory risks; To establish standards of acceptable behavior; To set forth the rights, privileges, and obligations of ARIIX and its Representatives; and To define the relationship between ARIIX and its Representatives Policies and Procedures Incorporated into the Representative Agreement These Policies and Procedures (in their present form and as amended at the discretion of ARIIX (hereafter ARIIX or the Company )) are incorporated into, and form an integral part of, the ARIIX Representative Agreement. It is the responsibility of each Representative to read, understand, adhere to, and ensure that he or she is aware of and operating under the most current version of these Policies and Procedures. Throughout these Policies, when the term Agreement is used, it collectively refers to the ARIIX Representative Application and Agreement, these Policies and Procedures, and the ARIIX Business Entity Application (if applicable). These documents are incorporated by reference into the ARIIX Representative Agreement (all in their current forms and as amended by ARIIX) Changes to the Agreement ARIIX will make changes to the Agreement and these Policies & Procedures as necessary. The Company will provide its 2

7 Representatives with the maximum possible notice of the changes for Representatives. Nevertheless, each Representative who has entered into a previous version of the Agreement, including previous versions of the Policies & Procedures, may choose whether or not to accept the new Agreement or to remain bound by the Agreement that he or she previously accepted. Thus, Representatives may have different versions of this Agreement. In rare cases, ARIIX may have no choice but to mandate that specific changes be accepted by Representatives. These instances are limited to the following: 1. Maintaining the viability of ARIIX as an organization; 2. As required to comply with changes mandated by governments, regulators, or law; 3. As required by affiliated industry trade groups. By executing the Agreement, Representatives agree to abide by any modifications to the Agreement necessitated by the circumstances listed above. Amendments to the Agreement will be effective 30 days after publication of notice that the Agreement has been modified. Notification of amendments will be published by one or more of the following methods: (1) posting on the Company s official website; (2) ; (3) posting in the online xoffice; (4) inclusion in the Company s periodicals; (5) inclusion in product orders; or (6) other special mailings Provisions Severable If any provision of the Agreement in its current or amended form is found to be invalid or unenforceable for any reason, the invalid portion(s) of the provision will be severed, and the valid portions will remain in full force and effect Delays ARIIX will not be responsible for delays and failures in performing its obligations due to circumstances beyond its reasonable control, such as strikes, labor difficulties, riots, war, fire, death, curtailment or interruption of a source of supply, government decrees or orders, etc Waiver The Company never forfeits its right to insist on compliance with the Agreement and with the applicable laws governing the conduct of a business. Failure by ARIIX to exercise any right or power under the Agreement or to insist upon strict compliance by a Representative with any provision of the Agreement will not result in a waiver of ARIIX s right to demand exact compliance with the Agreement. In the event that a policy is waived, such waivers must be conveyed, in writing, by the Compliance Committee or an officer of the company. The waiver will apply only to the particular case for which it is given Reliance on Professional Advisors ARIIX Representatives should seek advice from their professional advisors about legal, financial, tax, entity structure, and other professional matters and should not rely on any such opinions given by ARIIX. SECTION 4 - BECOMING A REPRESENTATIVE Requirements to Become a Representative To become an ARIIX Representative, each applicant must: Be a Member of ARIIX (having agreed to the ARIIX Member Agreement); Reside in a geographic area that ARIIX has officially announced is open for business; 3

8 Have a Customer or Representative in his or her downline organization; Provide accurate and current contact, shipping, and banking information; Agree to the ARIIX Representative Agreement to ARIIX; and Submit a correct unique resident ID or taxpayer identification number (if the applicant is a resident of the United States, including a resident alien). For individuals, the correct taxpayer identification number is either a Social Security Number or, for resident aliens who do not have and are not eligible to receive a Social Security Number, an Individual Taxpayer Identification Number. For an applicant that is a partnership, corporation, or other Business Entity organized in the United States, an Employer Identification Number is required. ARIIX reserves the right to accept or reject any Representative Application and Agreement for any reason. To retain his or her status as a Representative of ARIIX, each Representative must maintain current and accurate contact information, including mailing address, address, and telephone number, as well as current payment information Business Orientation Systems No person is required to purchase ARIIX products or services to become a Representative. But in order to familiarize new Representatives with ARIIX products, services, sales techniques, sales aids, and other matters, the Company requires that new Representatives purchase a Business Orientation System, except where prohibited by law. ARIIX will repurchase kits in Resalable condition from any Representative who terminates his or her Representative Agreement Identification Number To protect and maintain the confidentiality of government-issued identification numbers, ARIIX will assign an identification or ID number to each Representative. Representatives must use their ID numbers every time they call a Customer Service Agent Representative Benefits Once ARIIX has accepted an Application and Agreement, the benefits of ARIIX s Compensation Plan become available to Representatives. These benefits include (but are not necessarily limited to) the right to do the following: Re-sell ARIIX products and services; Purchase ARIIX products and services at Representative pricing; Participate in the ARIIX Compensation Plan (receive bonuses and commissions, if eligible); Sponsor other individuals as Customers, Members, and Representatives into the ARIIX business and thereby, build a Marketing Organization and progress through the ARIIX Compensation Plan; Receive periodic ARIIX literature and other ARIIX communications specific to compensation; Participate in ARIIX-sponsored support, service, training, motivational, and recognition functions, upon payment of appropriate charges, if applicable; and Participate in promotional and incentive contests and programs sponsored by ARIIX for its Representatives Term and Renewal of an ARIIX Business The term of this Agreement is one year from the enrollment date. Representatives must renew their Representative Agreements each year by paying an annual renewal fee (found in the ARIIX Activ8 Compensation Plan Manual) on or before the anniversary date of their Representative Agreements. In extreme circumstances in which the actions of a Representative threaten the viability of the company, ARIIX may, at the end of the term of this Agreement, elect not to renew a Member or Representative Agreement. Such non-renewal may be appealed to the Founders Club. If the renewal fee is not paid within 30 days after the expiration of the current term of the Representative Agreement, it will be prima 4

9 facie evidence that the Representative no longer wants to be an ARIIX Representative, and the Representative will be selfcanceled. In the event that the Representative does not wish to end his or her relationship with ARIIX, ARIIX may allow (at ARIIX s discretion) a 30-day grace period during which the Representative s account will be suspended. During this time, the Representative will not earn any product credits. Additionally, the Representative will not be eligible for any commissions following the past anniversary date. Any credits (including, but not limited to, product credits or savings bonus credits) owed to a Representative will be forfeited as a result of self-cancelation. Representatives will also have no access to xoffice tools. Nevertheless, the Representative s income position will remain in place during this 30-day grace period, providing the Representative the opportunity to request reinstatement of all future Representative benefits going forward. ARIIX will automatically charge the renewal fee to the Representative s credit card or bank account on file with ARIIX on the anniversary date of the Representative s Agreement. The annual renewal fee will renew the Representative s Agreement, maintain the Representative s line of sponsorship, and will continue the Representative s entitlement to participate in the ARIIX Activ8 Compensation Plan. Representatives without a credit card or bank account must renew by phone or in writing. In the event the renewal fee cannot be collected by ARIIX for any reason, it is the Representative s responsibility to ensure that payment has been made and received. SECTION 5 - PAYMENT AND SHIPPING Credit and Debit Cards Depending on the country of business, ARIIX accepts most common payment forms including credit cards. In the event that a charge is declined, an order will be voided. Any loss of commissions due to voided or declined orders are born by the Representative Restrictions on Third Party Use of Credit and Debit Cards Customers, Members, or Representatives may use another individual s credit or debit card to enroll or to make purchases from the Company PROVIDED that they have, provable permission of the card or account holder Sales Taxes ARIIX is required to charge applicable sales (not income) taxes (i.e. VAT, Duty, Sales) on all purchases made by Customers, Members, and Representatives, and to remit the taxes charged to the respective jurisdictions. Accordingly, ARIIX will collect and remit taxes on behalf of Representatives. If a Representative has submitted, and ARIIX has accepted, a current Sales Tax Exemption Certificate and Sales Tax Registration License, sales taxes will not be added to the invoice, and the responsibility of collecting and remitting sales taxes to the appropriate authorities will be on the Representative. Exemption from the payment of sales tax is applicable only to orders that are shipped to the location for which the proper tax exemption papers have been filed and accepted. Applicable sales taxes will be charged on orders that are dropshipped to a location in which exemption papers have not been filed and/or accepted. The law does not allow any sales tax exemption accepted by ARIIX to be retroactive. Representatives agree to allow ARIIX to modify tax collection amounts and requirements as required and/or modified by any government regulations related to taxation Shipping and Risk of Loss ARIIX may deliver products by common carrier. Representatives agree to pay for freight, handling, and other shipping charges to cover the cost of shipping products to Representatives. Delivery of the products is complete when ARIIX delivers the products to the common carrier. Title to the products and risk of their loss or damage in shipment pass to the Representatives at that time. 5

10 SECTION 6 - PRODUCT GUARANTEES, RETURNS, AND INVENTORY REPURCHASE Product Exchange Guarantee ARIIX warrants the quality of its products and shall exchange any defective product subject to the terms and conditions of ARIIX s Return Policy Thirty Day Return Policy Returns by Retail Customers To provide excellent customer service, ARIIX obligates its Representatives to honor the Company s 100 percent, unconditional, 30-day, money-back guarantee to all Retail Customers. If for any reason a Retail Customer is dissatisfied with any ARIIX product (used or unused), he or she may return the product to the Representative from whom the product was purchased within 30 days from the date of purchase for replacement, exchange, or full refund of the purchase price. If the Retail Customer requests a refund, the Representative who sold the product to the Retail Customer must immediately refund the Retail Customer s purchase price. Retail Customers must return any refunded merchandise to the Representative who sold it to them. Because the Company cannot know the selling price, terms, and/or conditions under which the transaction occurred between the Representative and his or her Customer, ARIIX will not accept returned merchandise directly from Retail Customers. For products returned to ARIIX by Representatives, a Product Return Form must be completed, accompanied with the original sales receipt and merchandise. ARIIX will then replace the returned merchandise with a similar product and will ship it to the Representative. All Retail Customers must be provided with two copies of an official ARIIX Retail Sales Receipt at the time of the sale. The back of the receipt provides the Customer with written notice of his or her rights to cancel the sales agreement Returns by Preferred Customers ARIIX offers Preferred Customers (and possibly Retail Customers who order directly from ARIIX on an initial order only) a 100 percent, 30-day, money-back guarantee on their initial product order. If a Preferred Customer is dissatisfied for any reason with any ARIIX product, he or she may return that product (regardless of Resalable condition) to the Company within 30 days for replacement, exchange, or full refund of the purchase price. If a Preferred Customer returns merchandise equal to or exceeding $ USD, the Company will deem the return a voluntary cancellation Returns by Representatives If a Representative decides to cancel his or her distributorship during the first 30-day period immediately following his or her enrollment, ARIIX will refund 100% of the price of the Business Orientation System and all products purchased as part of the Representative s initial order. The cancelling Representative must return the products and the entire Business Orientation System to ARIIX (note that this 100% refund does not apply once a Representative places his or her second product order). After the first order, refunds for returned products, Business Orientation Systems, and sales aids are made according to the section of this Agreement covering All Other Returns. If a Representative returns his or her initial order for a refund, the return constitutes a voluntary cancellation of his or her Agreement All Other Returns After the initial order, a Representative may return products, Business Orientation Systems, and sales aids that he or she personally purchased from ARIIX (purchases from other Representatives or third parties are not refundable) that are in Resalable* condition and that have been purchased within one year before the date of return. Upon receipt of Resalable products, Business Orientation Systems, or sales aids, the Company will refund up to 90% of the net cost of the original 6

11 purchase price (less any shipping and handling fees), unless otherwise required by law. ARIIX will credit the refund to the card or account used for the original purchase. If a Representative received a commission based on a product that he or she purchased and such product is subsequently returned for a refund, the commission that was paid from that product purchase will be deducted from the amount of the refund. Additionally, if the return was from an order that qualified the Representative for commission eligibility, all commissions/bonuses, Titles, and positions earned as a result of the returned purchase will be deducted from the total refund. If a Representative returns more than $ of product for a refund rather than an exchange in any six-month period, the request will constitute the Representative s voluntary cancellation of his or her Representative Agreement, and the refund will be processed as an inventory repurchase according to this section. Product exchanges in Resalable condition will NOT constitute voluntary cancellation. *Resalable Condition: Products and sales aids will be deemed "resalable" if each of the following elements is satisfied: (1) they are unopened and unused; (2) packaging and labeling has not been altered or damaged; (3) products are in new condition at the time they are received by ARIIX; (4) products are returned to ARIIX within one year from the date of purchase; and (5) a newer upgrade (i.e. version, reformulation, discontinuation) has not been released to the general public. Any merchandise that is clearly identified at the time of sale as nonreturnable, discontinued, or as a seasonal item, is not resalable. Replicated Website fees are not refundable except as required by applicable state law Procedures for All Returns To assist Representatives with returns, ARIIX has established the following procedures, which apply to all returns for refund, repurchase, or exchange: All merchandise must be returned to ARIIX by the Customer, Member, or Representative who purchased it directly from ARIIX. The return must be accompanied by: o The original packing slip with the completed and signed Product Return Form; and o The unused portion of the product in its original container. Proper shipping carton(s) and packing materials should be used in packaging the product(s) being returned for replacement. Customers, Members, and Representatives should use the best and most economical means of returning the package. All returns must be shipped to ARIIX with the shipping pre-paid. ARIIX does not accept shipping-collect packages (C.O.D.). The risk of loss in shipping for returned product is solely on the Customer, Member, or Representative. If any returned product is not received by the Company s distribution center, it is the responsibility of the Representative to trace the shipment. If the returning items are not received to ARIIX within 30 days from the initial return request, the return will be void. Returns must be received by ARIIX within ten days from the date on which the Retail Customer returned the merchandise to the Representative with the corresponding sales receipt. SECTION 7 - OPERATING AN ARIIX BUSINESS Advertising ARIIX and its Representatives must safeguard and promote the great reputation of ARIIX and its products. The marketing and promotion of ARIIX, ARIIX products, the ARIIX opportunity, and the Compensation Plan must avoid all discourteous, deceptive, misleading, unethical, or immoral conduct or practices. To promote ARIIX s products, services, and the tremendous opportunity ARIIX offers, Representatives must use the sales tools and support materials produced or approved by ARIIX. 7

12 ARIIX promises that it will always put forth its best effort to develop and produce the most effective sales aids and business tools available. ARIIX, nevertheless, must always be sensitive to the legal and regulatory requirements of its business. Because of these requirements, it can often be extremely difficult to develop sales aids or business tools that are fully compliant. It is, therefore, essential that Representatives adhere to the terms of the ARIIX Compensation Plan as set forth in official ARIIX literature. Representatives may not offer the ARIIX opportunity through, or in combination with, any other system, program, sales tools, or method of marketing other than those specifically set forth in official ARIIX literature. Representatives must not require or encourage other current or prospective Customers, Members, and Representatives to execute any agreement or contract other than official ARIIX Representative Agreement in order to become an ARIIX Representative. Similarly, Representatives must not require or encourage prospects, Members, and/or Representatives to make any purchase from, or payment to, any individual for training, literature, or other materials related to building, developing, or promoting direct sales and/or ARIIX or the Compensation Plan other than as outlined in the official ARIIX literature. Because the laws and regulations that govern product marketing are constantly changing, ARIIX cannot foresee how the Company and its Representatives will be affected. ARIIX, therefore, reserves the right to amend this Agreement to ensure compliance with any updated laws and regulations that affect the marketing of its products Individually Created Marketing Materials Only Representatives who have achieved the Title of Officer and above may produce individual marketing materials to market and promote ARIIX, ARIIX products, the ARIIX opportunity, the Compensation Plan, or their own ARIIX businesses. All other Representatives may use only marketing materials produced or currently approved by ARIIX. Marketing materials include, but are not limited to, brochures, flyers, pamphlets, posters, postcards, letters, classified advertisements, etc. that promote ARIIX s products and programs, as well as messages, voic recordings, and Internet websites used to publicize ARIIX, its products, its services, or its Compensation Plan. Any Representative who has achieved the Title of Officer or higher and who desires to create his or her own marketing materials must first be certified through compliance training (the cost of which is to be paid by the Representative) regarding legally permissible marketing materials and methods, and the allowable use of ARIIX s name, likeness, image, etc. Once a Representative s Officer Title has been certified, he or she may then submit a copy of the proposed materials to ARIIX for review and approval before he or she may use the materials to promote ARIIX, its products, its opportunity, or his or her business. Upon receipt of the proposed marketing material, ARIIX will review the information to determine the appropriateness of the material s form and content. ARIIX s review of the proposed promotional material may be subject to a review fee. ARIIX will promptly notify the Representative regarding the Company s decision to approve or disapprove the material for use in promoting ARIIX, its products, its opportunity, or his or her ARIIX business activities. Officer and higher-titled Representatives may only use the materials that ARIIX has expressly approved in writing. It is the Representative s responsibility to ensure that previously approved marketing material remains current and up-to-date. ARIIX reserves the right to rescind approval of any marketing materials, and Representatives waive all claims for damages or remuneration arising from a rescission. In order to maintain fairness, Representatives may not sell marketing materials to other ARIIX Representatives, unless ARIIX grants an express written exception. Absent such an exception, Representatives may make approved marketing materials available to other Representatives free of charge if they wish Individually Created Training Materials ARIIX strives to keep the training of its Representatives consistent across the entire field of Representatives in order to unify its Representatives and in order to remain compliant with the laws and regulations that govern the direct selling industry. Further, ARIIX is in the business to sell health and wellness products, not the individual training products of its Representatives. Representatives, therefore, may not sell training materials or sales aids to other ARIIX Representatives, 8

13 unless ARIIX grants an express written exception. Absent such an exception, Representatives may make approved marketing materials available to Representatives free of charge if they wish Trademarks and Copyrights The name "ARIIX" and other names that may be adopted by ARIIX related to the company or its products are proprietary trade names, trademarks, and service marks of ARIIX. As such, these marks are of great value to ARIIX and are supplied to Representatives for their use only in an expressly authorized manner. ARIIX must be certain that the reputation of its brand names will be revered. ARIIX, therefore, cannot allow any person or entity, including ARIIX Representatives, to use ARIIX s trade names, trademarks, logos, designs, or symbols, or any derivatives of such marks in any unauthorized manner without ARIIX s express written permission. Regardless of prior written permission, ARIIX reserves the right to rescind permission to use ARIIX s trademarks, service marks, and copyrights at any time. The content of all Company-sponsored events is copyrighted material. Representatives may not produce for sale or distribution any recorded Company events and speeches without written permission from ARIIX, nor may Representatives reproduce for sale or for personal use any recording of Company-produced audio or video tape presentations. Independent Representatives may use the ARIIX name in the following manner: Representative s Name Independent ARIIX Representative Example: Alice Smith Independent ARIIX Representative Representatives may not use the name "ARIIX" in any form in their team name, a tagline, an external website name, a personal website address or extension, an address, as a personal name, or as a nickname unless expressly approved by the Company in writing. Any close misspellings of ARIIX (including, but not limited to, ARIXX, ARIX, ARRIX) may also be deemed a protected trade name of ARIIX at the discretion of ARIIX. Representatives must not hold themselves out as anything other than Independent ARIIX Representatives and must not misrepresent themselves as employees or agents of the Company Independent ARIIX Representative Logo All ARIIX Representatives must use the Independent Representative version of the ARIIX logo and all of the brand logos offered by ARIIX. Representatives can find graphic files of the approved logos in xoffice. Using any other ARIIX modification to the logo requires written approval Media and Media Inquiries Representatives must not attempt to respond to media inquiries regarding ARIIX, its products or services, or their independent ARIIX businesses. ARIIX wants to assist Representatives in their responses. All inquiries by any type of media must be immediately referred to ARIIX s home office. This policy is designed to assure that accurate and consistent information is provided to the public, as well providing ARIIX and its Representatives with a proper public image. 9

14 Unsolicited ARIIX does not permit Representatives to send unsolicited commercial s unless such s strictly comply with applicable laws and regulations including, without limitation, the federal CAN SPAM Act. Any sent by a Representative that promotes ARIIX, the ARIIX opportunity, or ARIIX products and services must comply with the following: There must be a functioning return address to the sender. There must be a notice in the that advises the recipient that he or she may reply to the , via the functioning return address, to request that future solicitations or correspondence not be sent to him or her (a functioning opt-out notice). The must include the Representative s physical mailing address. The must clearly and conspicuously disclose that the message is an advertisement or solicitation. The use of deceptive subject lines and/or false header information is prohibited. All opt-out requests, whether received by or regular mail, must be honored. If a Representative receives an opt-out request from a recipient of an , the Representative must forward the opt-out request to the Company. ARIIX may periodically send commercial s on behalf of Representatives. Representatives agree that the Company may send such s and that individuals mailing and addresses will be included in such commercial mailings. Representatives must honor opt-out requests generated as a result of mailings sent by ARIIX Unsolicited Faxes Representatives may not use or transmit unsolicited faxes in connection with their ARIIX business Telemarketing The Federal Trade Commission and the Federal Communications Commission each have laws that restrict telemarketing practices. Both federal agencies (as well as a number of states) have do not call regulations as part of their telemarketing laws. Although ARIIX does not consider Representatives to be telemarketers in the traditional sense of the word, these government regulations broadly define the term telemarketer and telemarketing so that the inadvertent act of calling or texting someone whose telephone number is listed on the federal do-not-call registry could violate telemarketing laws. Telephone calls and text messages placed to a prospective Customer, Member, or Representative are permissible under the following situations: The Representative has an established business relationship with the prospect. (An established business relationship is a relationship between a Representative and a prospect based on the prospect s purchase, rental, or lease of goods or services from the Representative, or a financial transaction between the prospect and the Representative within the 18 months immediately preceding the date of a telephone call to induce the prospect's purchase of a product or service.) The prospect made a personal inquiry or application regarding a product or service offered by the Representative within the three months immediately preceding the date of such a call. The Representative receives written and signed permission from the prospect authorizing the Representative to call. (The authorization must specify the telephone number(s) that the Representative is authorized to call.) The person being called is the Representative s family member, personal friend, or acquaintance. (An acquaintance is someone with whom the Representative had at least a recent, first-hand relationship with 10

15 in the preceding three months. Bear in mind, however, that if Representatives engage in card collecting with everyone they meet and subsequently call them, the FTC may consider this a form of telemarketing that is not subject to this exemption. Thus, if Representatives engage in calling acquaintances, they must make such calls only on an occasional basis, not making this a routine practice.) Outside of the type of individuals listed above, Representatives must not engage in telemarketing during the operation of their ARIIX businesses. The term telemarketing means the placing of one or more telephone calls or text messages to an individual or entity to induce the purchase of an ARIIX product or service, or to recruit them for the ARIIX opportunity. Cold calls or texts made to prospects that promote either ARIIX s products or the ARIIX opportunity constitute telemarketing and are prohibited. These include: Calls and texts placed using automatic telephone dialing systems or software relative to the operation of a Representative s ARIIX business, and Outbound telephone calls and texts to any person that deliver any pre-recorded message (a "robocall") regarding or relating to the ARIIX products, services, or opportunity Telephone Directory Listings Representatives may list themselves as Independent ARIIX Representative in the white or yellow pages of a telephone directory, or in online telephone directories, under their own name. No Representative may place telephone or online directory display ads using ARIIX's name or logo. Representatives may not answer the telephone in any manner that might suggest to the caller that he or she has reached the ARIIX corporate offices Television and Radio Advertising Representatives may only advertise on television and radio with ARIIX s express written approval Advertised Prices To maintain fairness, Representatives may only create marketing material (online or printed) that offers ARIIX products at the retail price published in the Company s official pricelist. If Representatives would like to offer ARIIX products at a price lower than retail (but greater than or equal to than the price for which they purchased the products), they may do so only when selling individually to their customers, and provided that the price is not lower than the auto-delivery price. Representatives would not be allowed to advertise the lower price in their marketing materials. To provide Representatives with the occasional special offer and to take advantage of seasonal trends, ARIIX may publish and allow limited-time special pricing that Representatives may publish in their marketing materials. These discounted prices may only be advertised during the duration of the ARIIX special. When the special ends, Representatives must revert to advertising the retail price in their marketing materials Use of Name and Likeness Occasionally, Representatives photographs, names, voices, or likenesses may be used in marketing, training, orientation, or other company materials. Representatives expressly give permission for their photographs or likenesses to be used by ARIIX for all reasonable business pursuits, including, but not limited to, marketing, training, orientation, and Representative development materials. In the event that the Representative s Agreement is cancelled, ARIIX will have the right to continue to use the Representative s name and likeness to promote ARIIX products and other business opportunities on any materials or inventories in ARIIX s possession at the time of cancellation until all materials and/or inventories have been exhausted. 11

16 7.2 - Online Conduct The world of online media is so dynamic that it is not possible to cover all new technologies, innovations, outlets, or exposure possibilities that currently exist and will exist in the future. ARIIX, therefore, simply states that any online activities related to ARIIX by its Independent Representatives must be conducted in a manner that protects the Company and its good reputation. The subsections below identify some of the more common social media outlets and activities. But this list is in no way exhaustive for current or future media. ARIIX, at its sole discretion, reserves the right to modify these Policies and Procedures to address new and emerging media Individual Websites If a Representative desires to utilize an Internet web page to promote his or her business, he or she may do so through the Company s official website, using an official ARIIX Replicated Website template. Representatives who have attained the Title of Officer or higher may develop their own Registered External Websites. Representatives who wish to develop their own non-replicated Website must submit a properly completed External Website Registration Application and Agreement along with the proper website registration fee and receive the Company s express written approval before going live with the website. Once a website is approved by ARIIX in writing, it is a Registered External Website. Any changes to the website must be submitted to ARIIX, and the Representative must receive ARIIX s written authorization to make the change before going live with the updated website. An owner of Registered External Websites must ensure that the website s content complies with ARIIX s Policies and Procedures. It is the Representative s obligation to ensure his or her online marketing activities are truthful and do not mislead Customers, or prospective Members or Representatives in any way. Websites and web promotion tactics that mislead, regardless of intent, will result in disciplinary action. Misleading tactics include, but are not limited to, spam linking (or blog spam), unethical search engine optimization ( SEO ) tactics, unapproved banner ads, unauthorized press releases, and misleading click-through ads (i.e. having the display URL of a Pay-Per-Click ( PPC ) campaign appear to be directed to an official ARIIX Corporate Site when it in fact goes elsewhere). ARIIX will be the sole determiner of whether or not specific activities are deceptive. Any costs attributable to conforming to ARIIX standards will be the responsibility of the Representative ARIIX Replicated Websites In their xoffice tools, Representatives will receive ARIIX Replicated Website subscriptions to facilitate online buying experiences for Customers and online enrollments for prospects. Representatives are solely responsible and liable for the content they add to their Replicated Websites and they must regularly review the content to ensure it is accurate, relevant, legal, and compliant. Representatives may personalize their Replicated Websites, and may use their Replicated Website to promote, market, and sell ARIIX Products. But non-ariix products, services, or business opportunities must not be included. Representatives must not alter the look (placement, sizing, etc.) or functionality of the following: 1. The ARIIX Independent Representative Logo; 2. Representative Name; 3. ARIIX Corporate Website Redirect Button; 4. Artwork, logos, or graphics; and 5. Original text. Because Replicated Websites reside on the ARIIX.com domain (and other domains owned by the Company), ARIIX reserves the right to receive analytics and information regarding the usage of Replicated Websites. 12

17 Representatives must change this default ID and choose a uniquely identifiable website name. However, this name must not: 1. Be confusingly similar to portions of the ARIIX corporate website or any branded websites of ARIIX; 2. Confuse a reasonable person into thinking they have landed on an ARIIX corporate page; 3. Be confusingly similar to any ARIIX Team name; and 4. Contain any discourteous, misleading, or off-color words or phrases that might damage ARIIX s reputation Registered External Website Content Representatives are solely responsible and liable for their own Registered External Website content and they must ensure that it appropriately represents the ARIIX brand and adheres to ARIIX s Policies and Procedures. Additionally, Registered External Websites must not contain disingenuous popup-ads, promotions, or malicious code. Evaluations and corrective actions regarding Registered External Websites are at ARIIX s sole discretion ARIIX Independent Representative Disclosure To avoid confusion, the following three elements must be prominently displayed at the top of every page of a Registered External Website: 1. The ARIIX Independent Representative Logo; 2. The Representative s Name and Title; and 3. The ARIIX Corporate Website Redirect Button. Although ARIIX brand themes and images are desirable for consistency, anyone landing on any page of a Representative s Registered External Website must clearly understand that they are on an Independent Representative site, and not on an ARIIX corporate page Registered External Websites Must Exclusively Promote ARIIX Registered External Websites must contain content and information that is exclusive to ARIIX. To avoid any confusion, Representatives may not advertise products or services other than the ARIIX product line and the ARIIX opportunity Registered External Website Termination In the event of the voluntary or involuntary cancellation of this Agreement, Representatives must remove their Registered External Websites from public view within three days of cancellation and redirect (forward) all traffic from that domain to A Registered External Website may be transferred to another ARIIX Representative, subject to ARIIX approval, on a case-by-case basis Team Websites Representatives may use team websites for the purposes of connecting, communicating, training, educating, and sharing best practices among team members. Because these sites may contain sensitive and Company-specific information, these websites must be password protected and may be shared only with team members Domain Names, Addresses, and Online Aliases A Representative may use one URL with the name ARIIX as long as the Company is not using that particular URL, and it must be approved by the Company in writing before use. The URL must be surrendered to the Company upon request regardless of prior permission. Representatives hereby convey all of their rights, if any, in such URLs to the Company, and Representatives agree to execute any documents necessary for a conveyance, transfer, or assignment of such URLs to the 13