2015 Lone Star Script Care LLC ALL AGENTS ARE REQUIRED TO READ AND UNDERSTAND ALL OPERATING POLICIES AND PROCEDURES.

Transcription

1 2015 Lone Star Script Care LLC ALL AGENTS ARE REQUIRED TO READ AND UNDERSTAND ALL OPERATING POLICIES AND PROCEDURES.

2 WELCOME TO LONE STAR SCRIPT CARE LLC Lone Star Script Care LLC is a privately held corporation headquartered in Albany, New York, with operations dating back to We reach our target audience and prospective clients through a network of Independent Sales Agents. These Agents market the products and services offered by Lone Star Script Care LLC throughout the United States, including Hawaii and Alaska. We offer a variety of cost reduction tools primarily within the prescription sector of the healthcare industry. These solutions range from Prescription Assistance Programs, Discount Drug Cards and other membership based programs. OUR MISSION Lone Star Script Care was founded with one purpose: to help uninsured and under-insured Americans gain access to the prescription medications they cannot afford. Our company was created when we decided there had to be a better way to help consumers get the best possible prices for their prescribed medications. Millions of Americans continue to be uninsured or under-insured. The recent changes in health plans with the Affordable Care Act has done little to ease the pain with increased deductibles, higher co-pays and reduced formularies. Millions of Americans need help with lowering their prescription medication costs. EXECUTIVE MANAGEMENT Christopher D. Smith MBA, Ph.D Chief Executive Officer Reyna Y. Smith Chief Operating Officer 1 Lone Star Script Care LLC Policies And Procedures

3 CORPORATE INFORMATION Administrative Offices: Monday - Thursday 9:00 am - 5:00 pm (EST) Friday 9:00 am - 4:00 pm (EST) Member Services: Fax Number: Mailing Address: PO BOX 915, OSWEGO, NY Corporate Website: Support: support@lonestarscriptcare.com Federal Holidays OFFICE CLOSINGS Our offices are always closed on the days listed below: New Year s Day Birthday of Martin Luther King Jr Washington s Birthday Memorial Day Independence Day Labor Day Columbus Day Thanksgiving Day The Day After Thanksgiving Christmas Eve Christmas Day December 26 th New Year s Eve Weekends Our offices are closed on every weekend. 2 Lone Star Script Care LLC Policies And Procedures

4 AGENT ADMINISTRATION 3 Lone Star Script Care LLC Policies And Procedures

5 LONE STAR SCRIPT CARE AGENT NUMBERS The Agent s identification number assigned by us must be included on all Agent Applications to ensure proper credit. AGENTS MUST HAVE THEIR AGENT IDENTIFICATION NUMBER READY AND AVAILABLE WHEN CALLING OUR CUSTOMER SERVICE. Agents will receive 2 agent numbers from us. The first system generated agent number is given when an agent submits their electronic agent agreement to us online. A Group Rx # is provided for use with our discount drug cards. This number will be: AHLSXXXXX(AHLS + Your system generated ID) Your Group Rx # must be used for all discount drug cards that are distributed. NEW AGENT WELCOME KIT The Agent kit is shipped to the address that is provided to us when the Agent signs up online. Delivery cannot be made to P.O. Boxes. One kit is sent per Agent. This kit includes: 1) Welcome Letter 2) Sample Discount Rx Cards 3) Sample Fliers 4) CD with all relevant materials 5) Audio CD: Building Your Network Marketing Business (Jim Rohn) CHANGE OF PERSONAL INFORMATION - AGENTS Please contact Agent Services for any changes of address, phone number or address. Alternatively you can submit a change request to agentsupport@lsrxcare.com All changes take a minimum of 24 hours to be updated. 4 Lone Star Script Care LLC Policies And Procedures

6 AGENTS MUST HAVE THEIR AGENT IDENTIFICATION NUMBER READY AND AVAILABLE WHEN CALLING AGENT OR CUSTOMER SERVICE We recognize no exclusive territories. TERRITORIAL LIMITS CHANNELS OF COMMUNICATION It is the responsibility of the Agent to answer all questions asked by their downline Agents. In the event the question cannot be answered at this level, the question should be directed to the next upline Agent. From there, any unanswered questions should be directed to Agent Services. This system of communication is established to allow efficient corporate operations. Please follow this procedure. Please also ensure that your address is current and up to date. We will periodically distribute important corporate information via . It is important that you receive such updates. COMMISSIONS As an Agent your right to receive Commissions and our obligation to pay Commissions arise solely from the express language set forth in your Agent Agreement, and the Policies and Procedures Manual currently in effect. * All Commissions will accumulate until the balance exceeds $ Lone Star Script Care LLC Policies And Procedures

7 General Commission Rules All Products and Services Commissions are payable on the 1st and the 15th of every month based upon an Agents positive commission balance. All commissions are paid by direct deposit. An Agent s total commission balance for all products/services must be $25.00 before a direct deposit is made. Any chargebacks (payment reversals, NSF etc) will result in the Agent being charged back as well. Agents will continue to receive commissions as long as the member pays their monthly fee to us. Commissions are vested, except in cases where an agents contract is terminated for cause, in which case no further commissions will be payable. A 6 month advance is available for EFT business only for our 4 Tier Rx Card and Lone Star Benefits (must complete advance agreement and fax to ) Commissions are only paid on Active Members. This means members that are currently paying for our services. Lapses, cancellations, non-payers shall not be counted as active. Agents do NOT have to purcahse products through us to recieve commission. 6 Lone Star Script Care LLC Policies And Procedures

8 INTEREST ASSOCIATED WITH AGENT BUSINESS Except as otherwise provided, all rights and interests associated with an Agent Agreement belong solely to the individual that signs the Agent Agreement and provides his/her Social Security number in conjunction therewith. All 1099 income earnings will be reported in accordance with the above. If an Agent Agreement is in good standing, and the Agreement is in the name of an individual, upon death of the Agent, it will be passed on to the heir named in the will of the Agent. If the AGENT dies intestate (without a will) the Agreement (business) will be distributed according to the laws of the state of the Agent s residence. We are not bound by any agreement, promise or representation, oral or otherwise, made prior to the acceptance of an Agent Agreement. RECORDS & REPORTS As an Agent, you are responsible for keeping records of your business income and expenses. At year-end we report to you and the Internal Revenue Service 1099 Income on an actual basis. This means all of 7 Lone Star Script Care LLC Policies And Procedures

9 your gross income less any charge-backs will be reported in the year it was actually paid to you, which may or may not be the year it was earned. Voluntary Termination TERMINATION You may terminate your Agent Agreement at any time by stating your termination request in writing and mailing to our administrative offices: attempts to terminate by phone or will not be accepted. Voluntary Termination of an Agent Agreement voids that agreement in its entirety and when an Agent terminates their Agent Agreement, Agent knowingly forfeits ALL rights to any future Commissions, including but not limited to, advances, residuals, and bonuses. Involuntary Termination We reserve the right to terminate any agreement with an Agent with cause. Should we exercise our right to terminate our agreement with an Agent, all obligations to pay future Commissions including but not limited to, advances, residuals, and bonuses arising from the terminated Agent Agreement(s) cease immediately. Changing Sponsoring Upline Changing your sponsoring upline is not allowed. We believe it necessary to preserve the security of every Agent s business as well as the relationships Agents have worked to build with their sales organizations. Agents wishing to change sponsoring uplines must voluntarily cancel and then remain out for at least six (6) months from their termination date before re-joining under a different Agent. Additionally, any outstanding liability from their previous Agent account must be paid. Disputes over Recruiting We do not mediate any dispute arising over recruiting rights. Stacking Stacking occurs when an Agent assigns Members or Agents they have personally signed up under another Agent. Stacking is done for purposes that may include, but are not limited to, monetary gain and qualification for awards or contests. 8 Lone Star Script Care LLC Policies And Procedures

10 Further, stacking is a violation of our policies and procedures and is strongly discouraged. When discovered, any applications and/or Agents found to have been stacked are disqualified for any promotion, awards, contest or bonuses. Additionally, Agents, who in the company s sole judgment are found stacking are subject to termination of the Agent Agreement MARKETING MATERIALS Our materials, are under NO CIRCUMSTANCES, to be purchased and resold by any Agent. To Order Marketing Materials: Your Marketing Materials Order Form must be filled out completely. Your Agent number is required to access your account and it is very important that you include the shipping address. (NO P.O. BOXES PLEASE.) A phone number where you can be reached during working hours will help us to process your order more quickly if we have to verify something on your order. We do not keep your credit card information on file. Shipments Please allow 10 to 14 business days to receive your Marketing Materials order after it has been received by us. All orders are processed as they are received. SHIPMENTS CANNOT BE MADE TO P.O. BOXES. Orders to Hawaii Please be aware that orders shipped to the state of Hawaii will cost more money. This is due to ground shipping services not being available to this state. Reproduction of Marketing Materials Agents can promote their business in any legal or ethical manner as long as our name or logo is not used without prior written authorization. ALL LITERATURE AND SALES AIDS AND MARKETING MATERIALS ARE COPYRIGHTED AND CANNOT BE DUPLICATED IN ANY FORM WITHOUT EXPRESS WRITTEN CONSENT. AGENT SUPPORT SYSTEM Our Home Office is always here to help you as an Agent and if you have a customer that needs assistance simply direct them to our main toll free #: Ext Lone Star Script Care LLC Policies And Procedures

11 If you as the Agent need assistance regarding your business with us, please contact us at Ext Ethics AGENT SALES AND MARKETING COMPLIANCE Agents must comply with all federal, state and municipal laws relating to independent contractor businesses, and not engage in any unlawful or illegal trade practices or business activity. Agents are expected to conduct their business in a manner that reflects the highest standards of honesty, integrity, and responsibility toward customers, fellow Agents, Lone Star Script Care and its staff. Unethical Activity We do not permit Agents to participate in any activity that is unethical, and intercedes when unethical behavior is evident. At our sole discretion, we will determine whether certain activities are unethical, and if certain activities are determined to be unethical, we may, terminate the Agent s Agreement. Examples of unethical activity include, but are not limited to: Any use of our name or logo, without prior written authorization relating to advertisement for signing up Agents and signing up Members. Any use of our name or logo in any banking activity (i.e. credit card or bank accounts). Unauthorized use of a credit card. Misrepresenting our programs and services. Misuse of our name or misuse of the efforts of corporate personnel. Engaging in any deceptive or unlawful activity. Failure to submit advertisements or proprietary sales material bearing our name for approval prior to publication. Any use of our name or logo in print or electronic media advertising that has not received prior approval. Encouraging agents and/or members to terminate their relationship with us. Soliciting our employees, Agents or Members to other direct sales or network marketing organizations. Any activity that we, at our sole discretion, deem to be contrary to the spirit of the terms and conditions set forth in the Agent Agreement, our Policies and Procedures Manual then in effect. 10 Lone Star Script Care LLC Policies And Procedures

12 Zero Tolerance Policy We adhere to a zero tolerance policy towards behavior and actions that are deemed to be inappropriate to Lone Star Script Care LLC its employees and agents. We reserve the right to terminate a member at any time based upon our perceived value we provide to the said member. If we determine that there is no mutually beneficial relationship between ourselves and a particular member we will terminate that member s enrollment and no further fees will be due. Corporate Approval ADVERTISING We must approve in writing all advertising copy including, but not limited to, using our name or logo for any media including newspapers, posters, flyers, promotional items, etc. It is each Agent s individual responsibility to obtain approval from us for any advertisement to be used. NO AGENT SHOULD ACCEPT AD COPY FROM ANYONE AND ASSUME IT HAS BEEN APPROVED. FAILURE TO OBTAIN WRITTEN APPROVAL CAN RESULT IN TERMINATION. Requests for approval are submitted to us exactly as it is to appear in the publication. The approval process takes approximately five (5) business days. Once approved, we will notify the Agent by phone, fax or . Testimonials We provide ALL testimonials. Agents CANNOT provide testimonials to be distributed in any manner unless submitted to, and approved by us. Testimonials cannot include names or locations. Company Names and Logos Our employee names, corporate names and logos are proprietary and cannot be used in any manner, including reproduction of literature or in any advertisement without prior written approval from us. Any approved use of such corporate names or logos must indicate that the Agent is an Independent Agent. Advertisements to attract Agent or business opportunity advertising must be run blind, i.e. without reference to us unless approved by us in advance. We strictly prohibit the use of our corporate name, logo or any statements with respect to our business or operations in any activity by an Agent. VIOLATION OF THIS POLICY COULD RESULT IN THE TERMINATION OF THE AGENTS AGREEMENT. 11 Lone Star Script Care LLC Policies And Procedures

13 Internet Advertising The only approved Internet member advertising These web sites are approved in all states, in which we conduct business. Public or Electronic Advertising Media All radio, television and other electronic media must be approved by us in writing. Pop-up or banner advertising on the Internet is allowed only AFTER final advertising copy is approved by us Websites Official websites currently owned and operated by us include, but are not limited to: Agents may access Agent Support at the following URL: AGENTS MUST CHECK THEIR AGENT SUPPORT SITE EVERY DAY TO REVIEW ANY AND ALL UPDATES, INCLUDING, BUT NOT LIMITED TO, FUTURE AMENDMENTS TO THE AGENT POLICY AND PROCEDURE MANUAL. USE OF INTERNET WEBSITES PROVIDED THROUGH LONE STAR SCRIPT CARE LLC Agents are provided with the following replicated websites at no cost: 12 Lone Star Script Care LLC Policies And Procedures

14 1) 2) The above websites may be utilized by Agents for the purposes of recruiting new Agents and the submission of new member applications. Alternate Websites We recognize the significant role the Internet may play in building an Agent s business and need to ensure that this resource accurately promotes us, the Agent s relationship with the company. Agents who use alternate websites, URLs, redirecting URLs and/or Meta tags which promote their business over the Internet through the use of trademarks other companies, are solely liable for any infringement of such trademark. In addition, the Agent may be subject to termination. Website registration does not constitute approval of any trademark infringement. Also, if you are using images from our corporate website, please be aware that such images have not been authorized for third- party (your) use. In the event your use of such images causes damages or claims to us you agree to hold us harmless and indemnify it from any damages and liabilities resulting from your use of the images. We reserve the right to refuse approval of any outside site. Spamming Spamming is a violation of state and federal laws. Spam is the indiscriminate mass posting and distribution of unsolicited electronic messages over the Internet in an attempt to force the message on people who would not otherwise choose to receive it. Upon review and proof of sufficient evidence of an Agent using spam techniques, an Agent can be immediately terminated for violation of our anti-spamming policy. Can-Spam Advertising of our services or opportunity by sending messages to wireless devices without prior permission is prohibited. This prohibited activity covers messages sent to cell phones if the message uses an Internet address that includes an Internet domain name. Restrictions on Telephone Solicitation Federal and state laws restrict the use of telephone equipment for advertising our member benefits and business opportunity and prohibit certain unsolicited telephone calls and wireless text messaging regarding our member benefits and business opportunity. We will charge back to the offending Agent any costs or expenses paid or incurred by us as a result of any violation of this telephone solicitation policy. This chargeback policy is strictly enforced. 13 Lone Star Script Care LLC Policies And Procedures

15 Fax Blast, Texting and Auto-Dial Advertising is Prohibited It is a violation of federal law for any Agent to make an unsolicited call to any private residence or wireless telephone in the United States using an automatic dialing machine to deliver an artificial or pre-recorded voice or text advertising message or using a facsimile machine or computer to send advertising. This prohibited activity includes text messages and short message service (SMS) messages sent to a wireless phone number. The law gives the receiver of the unsolicited call the right to legally collect up to $1,500 for each call, text or facsimile received. Any Agent who advertises our business using any of these prohibited telephone solicitation methods is subject to immediate termination. Telephone Calls To Telephone Numbers on a Do Not Call List Federal and State DO NOT CALL laws restrict unsolicited telephone sales calls to persons who have registered their telephone number on a Federal or State DO NOT CALL list. It is a violation of law to call any person on a DO NOT CALL list for the purpose of soliciting the sale of a membership or recruiting an Agent. Violations of the Federal DO NOT CALL list can result in fines starting at $11,000. Any Agent that solicits any person for their business by making telephone calls to numbers on a DO NOT CALL list is subject to immediate termination of the Agents Agreement. Times For Permitted Calls Calls to persons NOT on a DO NOT CALL LIST or permitted calls to a person on a DO NOT CALL LIST must be made between 8:00 AM and 9:00 PM local time at the called person s location. Some states have more restrictive hours during which calls can be made. It is the responsibility of the Agent to determine the permitted hours of the state being called. Caller Id All telephone calls must be made with a caller identification service that allows the receiver of the call to display, at the time of the call, the telephone number and (where available) the name of the person calling. Required Record Keeping For telephone solicitations to persons NOT on a DO NOT CALL LIST or permitted calls to persons on a DO NOT CALL LIST, it is the responsibility of each Agent to keep the following records for 24 months from the date of the call: The name and address of each customer, the services purchased, the date of which such services are purchased, and the amount paid for the services. 14 Lone Star Script Care LLC Policies And Procedures

16 The name, address, and telephone number of each person directly involved in telephone sales. All written or recorded authorizations for ACH or credit/debit card transactions. Exception to DO NOT CALL Rule: The only exception to the DO NOT CALL LIST laws are telephone calls in which the sale is not completed and no payment authorization is obtained until you make a face-to-face sales presentation to the prospective Member or Agent. Most people do not know that this is an exception to the DO NOT CALL list law, and will most likely claim a violation for the call. Because of this, it is strongly advised for each Agent to record each telephone call. Doing this serves as evidence that an attempt was made to set an appointment for a face-to-face sales presentation, and that an attempt to sell over the telephone was not made. Incoming Calls Calls In Response To Advertising For Business Opportunity The DO NOT CALL laws prohibit an Agent from receiving a telephone call from a person, who is registered on a DO NOT CALL list, in response to an advertisement in any media including direct mail relating to recruiting, becoming an Agent, or the business opportunity. Direct mail includes fax transmissions and e- mail on the Internet. THIS LAW APPLIES UNLESS AN EXISTING BUSINESS RELATIONSHIP IS ALREADY ESTABLISHED. Leads Prospecting websites or print advertising collateral needs to contain the following opt-in language: (Press radio button or sign return card.) I AGREE: If I am on a National or State DO NOT CALL LIST, by submitting my contact information which includes my telephone number, you are authorized to contact me by telephone at that number regarding the Business Opportunity for the three (3) month period following date of this consent. Calls In Response To Advertising For Membership An Agent can receive a telephone call from a person in response to an advertisement in any media, except direct mail, for membership, provided all the disclosures are made during the phone call. Calls In Response To Direct Mail For Membership An Agent can receive a telephone call from a person in response to a direct mail advertisement for as long as the mailing clearly states the required disclosure(s). 15 Lone Star Script Care LLC Policies And Procedures

17 Advertising Rules & Regulations Our policy is very specific in these matters. FAILURE TO COMPLY WITH THESE POLICIES CAN RESULT IN TERMINATION OF THE AGENT AGREEMENT. We strictly prohibit the use of the following words (and/or derivatives thereof) and phrases in any type of advertisements*: Copay Copayments Coverage ( Program is an acceptable replacement) Covers ( Includes is an acceptable replacement) Enroller ( Agent is an acceptable replacement) Health Plan Premium ( Membership fee is an acceptable replacement) Prescription Drug Coverage Prescription Drug Plan Or any other word(s) or phrase(s) that could reasonably mislead a person into believing that our program(s) offered are associated with insurance. 16 Lone Star Script Care LLC Policies And Procedures

18 Member Administration 17 Lone Star Script Care LLC Policies And Procedures

19 CUSTOMER SERVICE As with any business, fair and consistent customer service is the key to continued growth and business development. Because of this, it s important that Agents are aware of, and adhere to our policies and procedures regarding customer satisfaction. In the interests of simplicity, any questions that your Member(s) have regarding any aspect of their Membership should be directed to our customer service team at As an Agent, we do not expect, require or recommend becoming too involved in their application status or continued enrollment. We do not pay you for servicing your book of business. Due to the nature of our programs, and the number of entities that are involved in the delivery of Prescription Assistance Programs we recommend you simply refer all and any questions regarding a Members enrollment directly to us. If you must request a status update regarding a Member, please submit these via to: status@lsrxcare.com Please be aware that providing status updates to an agent is not a priority from our Home Office. This takes away valuable time from processing your Member s enrollment(s) and ultimately impacts your Member in an adverse way. Any status update regarding your Members can be located in your Agent Back Office. STANDARD OPERATING TIMES FOR APPROVAL The standard time for approval into a Prescription Assistance Program is six (6) weeks. As an Agent, you must be patient while we work to get the Member approved. This time frame is based upon normal operating procedures and does not include any additional time due to lack of response from a Member or a Member s Healthcare Providers. You must inform your Member to continue purchasing their medications exactly the same way they were BEFORE the enrolled in our program. Members should not stop taking or purchasing their medications in reliance upon getting approved for assistance. INCREASED CALL VOLUME Our telephones are operated by live operators Monday to Friday, 9:00am to 5:00pm. During periods of increased call volume, Members may be asked to leave a voic because no one is available to assist 18 Lone Star Script Care LLC Policies And Procedures

20 them immediately. This is a perfectly normal business practice and we will return their call within 24 hours (excluding Holidays and Weekends) If calling after regular business hours, Member s will ALWAYS be prompted to leave a message. Historically, we receive increased call volume on Monday, Friday and the day after any Office closing. INCLEMENT WEATHER Our Home Office is located in Upstate New York. At times our offices are closed due to inclement weather. Unfortunately this is obviously beyond our control and we always seek to reopen as soon as it is safe to do so. During these periods of closures Members and Agents will have to leave a voic if they need to contact us. Alternatively, they may contact us via at support@lsrxcare.com AGENT PHONE CALLS TO LONE STAR SCRIPT CARE We expect all Agents that call in to our Home Office to have their Agent ID # available for identification purposes. Member information will not be released to an Agent that cannot provide their Agent ID #, last 4 of their Tax ID # and their Zip Code. This requirement is to ensure that a Members personal information is kept confidential. There are NO EXCEPTIONS to this rule. Our Case Manager s normally carry a significant workload. Please keep this in mind when you are calling them. Three way calls between the Case Manager, the Agent and the Member are not accepted. If you are dealing directly with a Case Manager and they do not answer your call please leave them a message or them. Your call is important to them, however they will normally be assisting other Members. Please be courteous and professional in all of your telephone calls to our Home Office. COMPLETION OF APPLICATION/AGREEMENT It is extremely important to complete Applications in their entirety. The applicant s entire physical address including apartment numbers, zip codes, phone numbers and the payment section must be submitted. Accuracy of the information is critical. We are not responsible for missing material or any other mailed items due to incorrect address information. We reserve the right to reject any incomplete applications. 19 Lone Star Script Care LLC Policies And Procedures

21 WHEN YOU SUBMIT AN APPLICATION BY FAX OR E-COMMERCE, PLEASE DO NOT SEND THE HARD COPY TO US OR TRY TO RESUBMIT THE APPLICATION BY FAX OR E-COMMERCE. THIS MAY CAUSE MULTIPLE DEBITS TO THE APPLICANT S FINANCIAL ACCOUNTS. On all faxed applications the sender assumes responsibility for the fax to be in readable condition. It is also the responsibility of the sender (Agent) to see that the fax is successfully transmitted and received by us. It is recommended to use the downloadable application forms in the Agent Back Office Support area. The ONLY phone numbers that receive faxed applications are Member Changes To Personal Information MEMBERSHIP CHANGES All Members should take personal responsibility for informing us of any changes to their demographic information. This includes, but is not limited to: Change of Address Change of Phone # Change of Healthcare Provider(s) Change of Medication(s) Change of Dosage(s) Members should call our Home Office on to make these changes. Changing Membership Plan Status Members may change the status of their membership by notifying us in writing. If a member calls to cancel, a cancellation form will be mailed to the member for signature and any remaining charges that are due and owing to us will be made evident in this letter. Agents are not able to cancel a member s enrollment in any of our programs. IMPORTANT: Members should not attempt to cancel by revoking charges to their account as they will be held responsible for fees we incur and our service fees. If a member needs to cancel they need to call our Home Office: Any non-payment of fees owed to us will be subject to collection activity through an appropriate debt collection agency registered in the member s home state. 20 Lone Star Script Care LLC Policies And Procedures

22 Once a member is cancelled, they will not be eligible for re-enrollment during the following 12 months. After this 12 month period, a member may re-enroll and pay all new fees and charges. Disputes over Prospects A prospect has the right to choose their Agent. Occasionally, one or more individuals may attempt to sign up the same prospect, resulting in a dispute. In some cases, Agents who believe they have successfully signed up a prospect may discover that the prospect is signed up under a different Agent. We processes all applications as received, in the order received, whether by mail, facsimile, or Internet. Once the application has been entered into the back office system, the Agent cannot be changed. If two or more applications are received for one prospect, the one received and processed first is recognized. Drafting PAYMENT METHODS All monthly Member fees, must be paid by either electronic bank draft or credit card. Such fees will be drafted/charged on the 4th or the 22nd of each month. * Make sure all proper drafting information accompanies each application. We accept ACH/Checking Account Drafts, VISA, MASTERCARD, DISCOVER and AMERICAN EXPRESS as methods of payment. We do not draft from savings accounts. We do not accept cash for any payments. We are not responsible for lost cash held by the Agent. Returned Drafts If a Member fee draft is returned by the bank for INSUFFICIENT FUNDS, a letter or is sent to the Member with instructions on how to remedy the account. If the bank draft is uncollectible a second time, the Member is Terminated. NO EXCEPTIONS. If the draft is returned STOP PAYMENT or AUTHORIZATION REVOKED, the Member is terminated immediately. NO EXCEPTIONS. If a draft is returned for any other reason (account closed, refer to maker, invalid account, etc.) the Member is put on an inactive status and a letter is sent with instructions on how to bring the account current. 21 Lone Star Script Care LLC Policies And Procedures

23 All returned drafts are subject to a $25.00 fee. This fee may be waived at the discretion of Lone Star Script Care s management team. Credit Card Declines If the Membership fee is declined, a letter or is sent to the Member requesting new credit card or bank draft information. If a monthly Membership is declined the Membership participant is put on an inactive status and a letter or is sent notifying the Member when the credit card is attempted again. If this second charge is declined, the Member is terminated. NO EXCEPTIONS. All credit card declines are subject to a $25.00 fee. This fee may be waived at the discretion of Lone Star Script Care s management team. Change of Payment Information If a Member wishes to change their payment information, they must send a fax or mail written notice of the change to us. The notice must include the Member s Identification number, and the new draft/charge information. PRESCRIPTION REFILLS In most cases, a Members prescriptions will be refilled automatically. On some occasions we may require further information before a prescription can be refilled. We will attempt to obtain this information directly from the Member and/or the Member s Healthcare Provider. If a Member has not received their prescription refill and is down to the last 15 day supply, they must call us immediately so we can refill their medication and ensure an uninterrupted supply of their medication(s). Members may place prescription refills by calling our toll free # Ext 1103 *This is an AUTOMATED line. It is not necessary to speak with a live representative to place a prescription refill. 22 Lone Star Script Care LLC Policies And Procedures

24 GENERAL PROVISIONS Amendments In order to maintain a viable marketing company, we specifically reserve the right to make any amendments or adjustments it deems necessary with respect to the rules, regulations, policies, procedures, compensation plan and/or pricing. Any changes will be incorporated as part of the policies and procedures manual and/or all agreements between us and our agents. Arbitration of Disputes Any issue, dispute, claim or controversy (collectively, the "Claim") between us or any officer, director, employee, manager, member, affiliate, legal counsel and/or advisor of us and the Agent, arising out of or relating to the Policies and Procedures Manual then in effect, the Agent Agreements or any of the other documents, shall be resolved by binding arbitration at the our headquarters in Albany, NY. The Claim shall be governed by the laws of the State of New York. Severability If any provision of this Policies and Procedures Manual is held to be unenforceable, the unenforceability of such provision shall not be held to invalidate any other provision in this Policies and Procedures Manual. 23 Lone Star Script Care LLC Policies And Procedures

25 Lone Star Script Care LLC, PO Box 915, Oswego, NY (T) (F) Lone Star Script Care LLC ALL AGENTS ARE REQUIRED TO READ AND UNDERSTAND ALL OPERATING POLICIES AND PROCEDURES.