policy company - forever living products · 1 introduction 1.01 (a) forever living products (flp)...

PolicyCompany

COMPANY POLICIESForever Living Products, FZE

Release: 15 May 2016

Table of Contents

01. Introduction ............................................................................................2

02. Definitions .............................................................................................2

03. Warranty, Guarantee, Product Return and Buy Backs ..........................6

04. Bonus Structure / Marketing Plan .........................................................8

05. Manager Status and Qualifications ..................................................... 11

06. Leadership Bonus (LB) ....................................................................... 12

07. Additional Incentives ............................................................................ 13

08. Manager and Beyond Awards ............................................................. 14

09. Gem Bonus ........................................................................................ 16

10. Earned Incentive Program (Forever2Drive) ......................................... 17

11. Chairman’s Bonus ................................................................................ 18

12. FLP Global Rally .................................................................................21

13. Ordering Procedures ..........................................................................23

14. Responsoring Policies .........................................................................23

15. International Sponsoring Policies ........................................................24

16. Prohibited Activities .............................................................................25

17. Company Policies ................................................................................28

18. Legal ..................................................................................................31

19. Restrictive Covenants .........................................................................33

20. Confidential Information and Nondisclosure Agreement .....................34

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1 Introduction1.01 (a)ForeverLivingProducts(FLP)isaninternationalfamilyofcompaniesthatproduce

andmarketexclusivehealthandbeautyproductsthroughouttheworldthroughitsuniqueconcept thatencouragesand supports theuseand retail salesof itsproducts through independent Forever Business Owners (FBO). FLP provideseachFBOwiththebestqualityproducts,supportstaffandmarketingplanintheindustry.Theaffiliatedcompaniesandtheirproductsprovideanopportunityforboth consumer and FBOs to improve thequality of their lives fromuseof FLPproducts, and equal access to success to anyone willing to properly work theprogram.Unlikemostbusinessopportunities,thereislittlefinancialrisktoFLP’sparticipants,sincenominimumcapitalinvestmentisrequiredandtheCompanyprovidesa liberalbuybackpolicy.

(b)FLPdoesnotrepresentthatanFBOwillachievefinancialsuccesswithoutworkingorbyrelyingsolelyontheeffortsofothers.CompensationinFLPisbaseduponthesaleofitsproducts.EachFBOisanindependentcontractorwhosesuccessorfailuredependson personaleffort.

(c)FLPhasalonghistoryofsuccess.ThefundamentalgoaloftheFLPmarketingplanistopromotethesaleanduseofhighqualityproductstoconsumers.TheprimarypurposeoftheFBOistobuildasalesorganizationtopromotethesaleanduseoftheseproductstoconsumers.

(d)TheFBOregardlessofhis/her level in theFLPMarketingPlan isencouraged tomake retail sales each month and keep records of such sales.

(e)A Successful FBO gains current knowledge of themarket by attending trainingmeetings,maintainingpersonal retail customers,andsponsoringotherFBOs tosell to retail customers.

(f)TheFBOwhohasquestionsorneedsclarificationshouldcontacttheRegionalSalesDirector/Area SalesManager, or call CustomerCare at +9714 2994800

1.02 (a)Company Policies have been implemented to provide restrictions, rules andregulationsforpropersalesandmarketingproceduresandtopreventimproper,abusiveorillegalacts.SuchCompanyPoliciesarerevised,modifiedandaddedto,fromtimetotime.

(b)EachFBOhasanobligationtobecomefamiliarwiththeCompanyPolicies.

(c) EachFBO,uponsigningtheForeverBusinessOwnerApplicationform,agreestoabidebyFLPCompanyPolicies.LanguagethereinspecificallyreferstotheFBO’scontractualcommitmenttofollowFLPCompanyPolicies.TheplacingofordersforproductwithFLPisareaffirmationofsuchcommitmenttoabidebytheCompanyPolicies.

2 Definitions Adjusted Wholesale Price:TheWholesalePricelesstheapplicablePersonalDiscount,

basedoncurrentsaleslevelachievement,atwhichtheproductsaresoldtoanFBOwho isWholesaleQualified.

Company Policies Revised 20160415 Effective 20160515 3

Accredited Sales:salesactivityasreflectedbytheCaseCreditsofordersplacedwiththe Company.

Active Sales Leader:ASalesLeaderwhohas4ormoreActiveCaseCredits inhis/herHomeCountryduringacalendarmonth,atleastoneofwhichisaPersonalCaseCredit.TheActivestatusofaSalesLeaderisestablishedeachMonth,andispartofthequalificationrequirement to receiveVolumeandLeadershipBonuses,GemBonus,Earned Incentive payments, EagleManager status, Rally expenses and Chairman’sBonus.

Bonus:acashpaymentorcredittowardfuturepersonalpurchasesfromtheCompanyto aWholesale Qualified FBO.

(a) Personal Bonus:apaymenttoaWholesaleQualifiedFBOof5-18%oftheSRPofhis/her online retail sales.

(b)Novus Customer Bonus:acashpaymenttoaWholesaleQualifiedFBOof5-18%of the SRP of the Purchases of his/her personally-sponsoredNovus Customers(or those Novus Customers’ downline Novus Customers) until that personally-sponsored Novus Customer becomes a Wholesale Qualified FBO.

(c) Volume Bonus (VB):acashpaymenttoaqualifyingSalesLeaderof3-13%oftheSRPofthePersonalAccreditedSalesofadownlineFBOwhoisnotunderanActivedownline Manager.

(d) Leadership Bonus (LB):acashpaymenttoaqualifyingManagerof2-6%oftheSRPofthePersonalAccreditedSalesofhis/herdownlineManagersandtheFBOsunder those downline Managers.

Business Entity Distributorship: aForeverBusiness whichhasbeenassigned toabusiness entity.

CC: CaseCredit

Case Credit:avalueassignedtoeachproducttocalculatesalesactivitytodetermineadvancements,bonuses,awardsandearned incentives for theFBOas set forth intheFLPMarketingPlan.OneCaseCreditisawardedforeachonehundredfiftyeightdollars&ninetysevencents ($158.97=AED585.00) wholesaleofsalesactivityasreflectedbyproductpurchasedfromtheCompany.AllCaseCreditsarecalculatedonaMonthbyMonthbasis.

(a) Active Case Credits: Personal Case Credits plus Novus Customer Case Credits.These determine a Sales Leader’s Active status each Month.

(b)Leadership Case Credits:CaseCreditsawardedtoanActiveLBQualifiedManagercalculatedat40%,20%,or10%ofthePersonalandNon-ManagerCaseCreditsofhis/her1st,2nd,or3rdgenerationActiveManagers, respectively.

(c) Novus Customer Case Credits: Case Credits as reflected by the Purchases of apersonally sponsored Novus Customer, or his/her downline Novus Customers,until he/she becomes Assistant Supervisor.

(d) Non-Manager Case Credits:CaseCreditsasreflectedbythePersonalAccreditedSales of a downline FBO who is not under a downline Manager.

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(e) Pass-Thru Case Credits:CaseCreditsasreflectedbythePersonalAccreditedSalesofadownlineNon-ManagerthatpassthroughanInactiveManager.ThesearenotcountedasNon-ManagerCaseCreditstowardthequalificationofanyincentives;however,theyarecountedaspartofaManager’sTotalCaseCredits.

(f)Personal Case Credits:CaseCreditsasreflectedbytheFBO’sPersonalAccreditedSales.

(g) Total Case Credits:thesumtotalofalltheFBO’svariouscasecredits.

(h)NEW Case Credits: The Case Credits generated by a Manager’s personally-sponsoredFBOlinesfor12processingmonthsafterbeingsponsored(includingthemonthinwhichthatFBOlinewassponsored),oruntilthatFBOlineachievesManager, whichever occurs first.

Domestic: pertainingtotheFBO’sHomeCountry.

Downline: all FBOssponsoredunderanFBO, regardlessofhowmanygenerationsdown.

Eagle Manager:AManagerwhohasachievedEagleManagerstatus.

Earned Incentive(Forever2Drive):anincentiveprogramthatpaysthequalifyingFBOan extra cash payment for 36 months.

Earned Trip:atravelawardfortwopersons,presentedtotheFBOwhoachievesanyof various marketing plan incentive programs.

Forever Business Owner (FBO):Onewho,havingpurchased2CaseCreditsworthofproductwithintwoconsecutivemonths,isWholesaleQualified(purchaseproductsatthewholesaleprice)toreceivea30%discountfromretail;andalsoqualifiesforapersonaldiscountfrom5%to18%ofretail,forpersonalpurchases,dependingonhis/herlevelwithintheForeverMarketingPlan.

Gem Manager:aManagerwhohasdevelopedatleast91stGenerationSponsoredRecognized Managers.

Home Country: the country inwhich the FBO resides for amajority of time. It isinthiscountrythattheFBOmustqualifytoreceiveActivityandLeadershipBonusQualification Waivers for all other FLP countries.

Incentive Shares: Thetotalcasecreditsgenerated,inaccordancewiththeChairman’sBonus rules that are used to determine the FBO’s shareof thebonus pool.

Inherited Manager:(see5.04)

Leadership Bonus (LB) Qualified:aRecognizedManagerwhohasqualifiedtoreceiveLeadership Bonus for the Month.

Month:acalendarmonth(i.e.,Jan1throughJan31).

Novus Customer: One whose Application has been accepted by the Company,entitlinghim/hertotheNovusCustomerPriceof15%discountfromretail,andwhohasnotyetpurchased,withinanytwoconsecutivemonths,2CaseCreditsworthofproduct.


Novus Customer Price:ThepriceatwhichtheproductsaresoldtoNovusCustomerswho are not Wholesale Qualified.

Novus Customer Profit:thedifferencebetweenNovusCustomerpriceandWholesaleprice,whichispaidtothefirstuplineWholesaleQualifiedFBOonthePurchasesofaNovusCustomerwhoisnotWholesaleQualified.

Operating Company: The administrative company under which one or multiplecountries use a single database to calculate sales level advancements, bonuspayments, and incentive qualifications.

Participating Country:AcountrythathasqualifiedtoparticipateintheChairman’sBonus Incentive by generating at least 3,000cc during any three months of thepreviouscalendaryear(3,000ccforanytwomonthsifre-qualifying),andproducesatleast one Chairman’s Bonus qualifier.

Personal Discount:adiscount,calculatedasapercentageofSRP,of5-18%,basedonthecurrentSalesLevel.ThisdiscountamountissubtractedfromtheWholesalePricetodeterminetheAdjustedWholesalePrice.

Personal Accredited Sales: the SRP or Case Credits of the FBO’s sales activity asreflected by purchases made in his/her name.

Qualifying Country:AnyParticipatingCountrythat isbeingusedastheCountryofQualification for the Chairman’s Bonus Incentive.

Recognized Manager:(see5.01)

Region: The region in which the FBO’s Home Country is located. Regions includeNorth America, Latin America, Africa, Europe and Asia.

Responsored FBO: an FBOwho has changed his/her Sponsor after 2 years of noactivity.

Retail Customer: One who purchases FLP products through authorized channelsandhasnotyetappliedtobeaNovusCustomerbysubmittinganApplicationtotheCompany.

Sales Leader: anFBOwhoisatthelevelofSupervisororabove.

Sales Level: any of various levels achieved by the cumulative Case Credits of theFBOandhis/herDownline.TheseincludeAssistantSupervisor,Supervisor,AssistantManager and Manager.

Sponsor:anFBOwhopersonallysignsupanotherFBO.

Sponsored Manager: (see5.03)

SRP: SuggestedRetailPrice

Suggested Retail Price (SRP): Theprice,notincludingtaxes,atwhichtheCompanyrecommendsthatproductsbesoldtoRetailCustomers.Itisuponthispricethatallbonuses and Personal Discounts are calculated.

Transferred Manager: (see5.04)

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Upline: theFBOsintheuplinegenealogyofanFBO.

Unrecognized Manager:(see5.02)

VB: VolumeBonus

Waiver: : awarded to the FBOwho completes certain requirements to qualify forbonusesinoneOperatingCompanythatisacceptedinlieuofthoserequirementsforthe following Month in all other Operating Companies.

(a) Activity Qualification Waiver: anFBOwhoisActivewith4ccPersonalandNovusCustomerinhis/herHomeOperatingCompanywillreceiveanActivityWaiverforthe followingMonth in all otherOperatingCompanies.

(b)Leadership Bonus Qualification Waiver: a RecognizedManager who is Active,or has received an Activity QualificationWaiver, and fulfills the Personal/Non-Manager cc Leadership Bonus requirement in any single Operating CompanyduringthecurrentMonthwillreceiveaLeadershipBonusWaiverforthefollowingMonth in all other Operating Companies

Webstore:theofficialonlineshoppingsitelocatedatwww.foreverliving.com

Wholesale Price (WP):theprice,notincludingtaxes,atwhichtheproductsaresoldto the FBO who is Wholesale Qualified. This price is discounted 30% from SRP.

Wholesale Qualified:therighttopurchaseproductattheWholesalePrice.AnFBOispermanentlywholesalequalifiedafterhe/shehasPersonalAccreditedSalesof2casecreditswithin any 2-consecutive-month period.

3 Warranty, Guarantee, Product Return and Buy Backs3.01 Thefollowingtimeperiodsshallapplyexceptwheremodifiedbylocallaw.

3.02 FLP warrants satisfaction and guarantees its products are free from defect andsubstantially conform to product specifications. For all FLP products exclusive ofliteratureandpromotionalproducts,thiswarrantyandguaranteeshallbeforaperiodending thirty (30) days fromdateof purchase.

Retail/Novus Customers:

3.03 (a)Retail/NovusCustomersareguaranteed100%productsatisfaction.Withinthirty(30)daysfromthedateofpurchase,aRetail/NovusCustomermay

1)Obtainanewreplacementforanydefectiveproduct;or

2)Cancelthepurchase,returntheproductandobtainafullrefundofthepurchaseprice,excludingshipping.

(b)Inallcases,propernotice,proofofpurchaseandtimelyreturnoftheproductisrequired tobegiven to thesourceofpurchase.FLP reserves the right to rejectrepetitive returns.

(c) WhenFLPproducts are acquiredbyRetail/NovusCustomers fromor through theCompany’sWebstore,andsubsequentlyreturnedforrefund,theProfitandBonuswhichwasdisbursedwillbechargedbacktotheFBO(s)whobenefitedfromthesale.


Refund and Buy Back Procedure for the FBO

3.04 Duringtherespectivestatedperiodsofwarrantyandguarantee,FLPwillprovideanewreplacementofthesamesuchproductinexchangeforadefectiveproductorforonethathasbeenreturnedtoanFBObyaRetailCustomerforlackofsatisfaction.Suchreplacementshallbesubjecttovalidationofpresentedproofoftimelypurchase.Suchpurchasemusthavebeenby theFBO returning theproduct. In addition, forreplacementsofproductstoanFBOforproductreturnsbyRetailCustomers,aproofofsaletotheRetailCustomerandwrittenproofofcancellationalongwithasignedreceiptforreturnoffundsaswellasthereturnofproductoremptycontainerswillberequired.Repetitivereturnsofproductbythesamepartiesmayberejected.

3.05 (a)FLPshallbuybackanyunsold,salableFLPproduct,exceptliterature,thathasbeenpurchasedwithintheprevioustwelve(12)monthsfromanyFBOwhoterminateshis/herForeverBusiness.SuchbuybackwillbeaccomplishedbytheterminatingFBOfirstgivingwrittennoticetoFLPofintenttoterminatetheForeverBusinessand forgo all rights and privileges relating thereto. The terminating FBOmustreturn all products for which a refund is being claimed, along with proof ofpurchase, toFLP.

(b)IftheproductreturnedbyaterminatingFBOwaspurchasedatNovusCustomerPrice, the Novus Customer Profit will be deducted from the FBO to whom itwaspaidand, iftheproductreturnedisgreaterthan1cc,allBonusesandCaseCreditsreceivedbytheterminatingFBO’suplinefortheproductsreturnedwillbedeductedfromtheupline.IftheCaseCreditswereusedforanylevelmove-upsoftheFBOorupline,thosemove-upsmaybere-calculatedafterdeductingtheCaseCreditstodetermineifthemove-upsshouldremain inforce.

(c)IfaterminatingFBOreturnsanyCombinationPak,anditismissingsomeproduct,therefundandthedeductionsfromtheuplinewillbecalculatedasiftheentireComboPakwasreturned,andthentheWholesaleorNovusCustomerPriceofthemissingcomponentswillbedeductedfromtherefundissued.

(d)Afterverificationofthefacts,theFBOwillreceivearefundcheckfromFLPintheamountequaltotheFBO’scostoftheproductsbeingreturned,lessthebonusespersonallyreceivedandthecostofhandling,freightandanyotherappropriatesetoffs.

(e)AfterrecoupinganycostsordamagesresultingfromtheterminatedFBO’sadverseconduct,ifany,FLPwillremovetheFBOfromtheFLPMarketingPlan,andhis/herentiredownlineorganizationwillmoveupdirectlyundertheterminatingFBO’sSponsor in thecurrentgenerationsequence.

3.07 The“BuyBackRule”isdesignedtoimposeupontheSponsorandtheCompanytheobligationtoensurethattheFBOisbuyingproductswisely.TheSponsorshouldmakeeveryefforttoproviderecommendedguidelinestotheFBOsothathe/shepurchasesonly as much product as is required to meet immediate sales needs. Productspreviouslycertifiedashavingbeensold,consumedorutilizedshallnotbesubjecttorepurchaseunderthe“BuyBackRule.”

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4 Bonus Structure / Marketing Plan4.01 TheForeverLivingMarketingPlanisexplainedasfollows:

(a) Novus Customer.TheNovusCustomerreceives:

• 15%discountonPersonalpurchases.

(b)Assistant Supervisor is achieved by generating a total of 2 Domestic PersonalandNon-Manager Case Credits in any singleOperating Companywithin any 2consecutiveMonthperiod.TheWholesaleQualifiedAssistantSupervisorreceives:

• 30%discountplus5%PersonalDiscountonPersonalAccreditedSales. • 15%NovusCustomerProfitonthePurchasesofpersonally-sponsoredNovus

Customersandtheirdownlines. • 5%PersonalBonusononlineRetailSales. • 5%NovusCustomerBonusonthePurchasesofpersonally-sponsoredNovus

Customersandtheirdownlines.

(c) Supervisor isachievedbygeneratinga totalof25DomesticPersonalandNon-ManagerCaseCreditsinanysingleOperatingCompanywithinany2consecutiveMonth period. The Wholesale Qualified Supervisor receives:

• 30%Discountplus8%PersonalDiscountonPersonalAccreditedSales. • 15%NovusCustomerProfitonthePurchasesofpersonally-sponsoredNovus

Customersandtheirdownlines. • 8%PersonalBonusononlineRetailSales. • 8%NovusCustomerBonusonthePurchasesofpersonally-sponsoredNovus

CustomersandtheirDownlines. • 3%VolumeBonusonthePersonalAccreditedSalesofpersonally-sponsored

AssistantSupervisorsandtheirDownlines.

(d) Assistant Manager is achieved by generating a total of 75 Domestic PersonalandNon-Manager Case Credits in any singleOperating Companywithin any 2consecutiveMonthperiod.TheWholesaleQualifiedAssistantManagerreceives:


Marketing Plan 18%

5%

5%8% 10%

13%8%3%5%

13%

Manager120 cc

Assistant Manager

75 cc

Supervisor25 cc

Assistant Supervisor

2 cc

Personal Bonus

Volume Bouns


CustomersandtheirDownlines. • 13%PersonalBonusononlineRetailSales. • 13%NovusCustomerBonusonthePurchasesofpersonally-sponsoredNovus


SupervisorsandtheirDownlines. • 8%VolumeBonusonthePersonalAccreditedSalesofpersonally-sponsored


(e) Manager is achievedbygeneratinga totalof 120DomesticPersonal andNon-ManagerCaseCreditsinanysingleOperatingCompanywithinany2consecutiveMonth period. The Recognized Wholesale Qualified Manager receives:


CustomersandtheirDownlines. • 18%PersonalBonusononlineRetailSales. • 18%NovusCustomerBonusonthePurchasesofpersonally-sponsoredNovus


AssistantManagersandtheirDownlines. • 10%VolumeBonusonthePersonalAccreditedSalesofpersonally-sponsored

SupervisorsandtheirDownlines. • 13%VolumeBonusonthePersonalAccreditedSalesofpersonally-sponsored


(f)Any one month or two consecutive months may be used to accumulate theCaseCreditsnecessary toachieve the levelsofAssistantSupervisor, Supervisor,AssistantManagerorManager.Allmove-upsshalloccuron theexactdate thatsufficient Case Credits are accumulated to reach the specified level.

(g)ExceptwheremultiplecountriesusethesameOperatingCompany,CaseCreditsgeneratedinonecountrycannotbecombinedwiththosegeneratedinanothercountry to achieve sales level advancements.

(h)The Domestic Personal Case Credits of a Novus Customer will also count asNovusCustomerCaseCreditsforallhisuplinesponsorsuptoandincludingthefirstuplinesponsorwhohasachievedthelevelofWholesaleQualifiedAssistantSupervisor or higher.

(i)ASponsorreceivesfullcasecreditsofanypersonally-sponsoredNovusCustomerand ensuing Downline group until that Novus Customer achieves theManagerlevel.Subsequently,iftheSponsorisLeadershipBonusQualified,he/shereceivesLeadership Case Credits equal to 40% of the Personal and Non-Manager CaseCredits of the first qualifiedManager down each sponsorship line, 20% of thePersonalandNon-ManagerCaseCreditsof thesecondqualifiedManagerdowneachsponsorshipline,and10%ofthePersonalandNon-ManagerCaseCreditsofthe third qualifiedManager down each sponsorship line.

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(j)AnFBOwillnotpassuptheSponsoronthewaytoachievinganySalesLevel.

(k)There is no re-qualifying for a Sales Level once it is earnedunless the ForeverBusiness is terminated or the FBO is Responsored.

4.02 Novus Customer 6-month Policy.

(a)ANovusCustomerwhohasbeensponsoredforsixfullcalendarMonthsandhasnot achieved the level of Assistant Supervisorwill be eligible to choose a newSponsor.

(b)ANovusCustomerwhochoosesanewSponsorwill loseanyformerdownlinesandaccumulatedmove-upCaseCredits,andwillcountasnewly-sponsoredforallapplicable incentives.

4.03 Activity Qualification.

(a)ToqualifyforallBonusesandIncentives,exceptPersonalDiscounts,PersonalandNovus Customer Bonuses, andNovus Customer Profit, a Sales Leadermust beActiveandmeetallotherrequirementsoftheMarketingPlanduringthecalendarmonth inwhich thebonuseswereaccrued.

(b)TobeconsideredActivefortheMonth,aSalesLeadermusthaveaTotalof4DomesticActiveCaseCreditsduringthatMonth,atleastoneofwhichisaPersonalCaseCredit.

(c)ASalesLeaderwhodoesnotachieveActivestatuswillnotbepaidaVolumeBonusthatmonth, and shall notbe consideredanActive Sales Leader.AnyunearnedVolumeBonuswillbepaidtothenextActiveSalesLeaderupline.Inturn,his/herbonuswillbepaidtothenextActiveSalesLeaderuplineandsoon.

(d)ASalesLeaderwhoforfeitsanyVolumeBonusmayre-qualifythefollowingmonth(with no retroactive application) as an Active Sales Leader.

4.04 Bonus and Profit Calculations and Payments.

(a)AllbonusesarecalculatedontheSuggestedRetailPrice(SRP)assetforthintheFBO’s monthly recap.

(b)Bonusesarecalculatedaccordingtopositionswithinthemarketingplanandarepaidatthecurrentlevelattained.Example:IfanAssistantSupervisorgenerates30TotalCaseCreditsduring2consecutiveMonths,he/shewillearn5%onanyPersonalAccreditedSaleswithinthefirst25CaseCreditsand8%onanyPersonalAccreditedSaleswithin the remaining5CaseCredits.

(c)ASalesLeaderdoesnotreceiveaVolumeBonusonanyFBOinhis/hersponsoredgroup who is at the same level in the marketing plan. However, he/she willreceivefullCaseCreditsfromsuchsourcesforSalesLeveladvancementandotherincentives.

(d)BonusesarepaidonthefifteenthofthemonthfollowingthatinwhichproductwaspurchasedfromtheCompany.Example:bonusesforJanuarypurchasesarepaid on February 15th.

(e)ProfitsgeneratedbyonlinepurchasesbyNovusCustomersandRetailCustomersaredepositedtotheFBO’sbankaccountorGlobalPayonthefirstbankingday


followingthe10th,20th,andlastdayofthemonth.IftheFBOhasnotregisteredfor Direct Deposit or Global Pay, these Profitswill be paid on the 15th of thefollowing month.

5 Manager Status and Qualifications5.01 Recognized Manager:

(a)AnFBOqualifiesasaRecognizedManagerandreceivesagoldManagerpinwhen

1) His/herentiregroupgenerates120PersonalandNon-ManagerCaseCreditswithinany2consecutiveMonthperiod,and

2) He/sheisanActiveSalesLeadereachMonthduringthesameperiod,and 3) TherearenootherFBOsinhis/herDownlinewhoqualifyasManagerduring

thesameperiod.

(b) IfanFBO’sDownlinealsoqualifiesasaManagerinanycountryduringthesameperiod, the FBO will be a Recognized Manager if

1) He/sheisanActiveSalesLeadereachMonthduringthesameperiod,and 2) He/shehasat least25DomesticPersonalandNon-ManagerCaseCredits in

thefinalMonthofqualificationfromFBOsinDownlinesotherthanthatoftheManager moving up in the same Month.

5.02 Unrecognized Manager:

(a)WhenanFBOandDownlinegenerate120PersonalandNon-ManagerCaseCreditswithinany2-consecutive-Monthperiod,andtheFBOdoesnotmeettheremainingrequirements for Recognized Manager, he/she becomes an UnrecognizedManager.

(b)AnUnrecognizedManagercanqualifyforthePersonalDiscount,NovusCustomerand Volume Bonuses, but cannot qualify for Leadership Bonus or any otherManager incentive.

(c)AnUnrecognizedManagercanqualifyasaRecognizedManagerbymeetingthefollowing requirements:

1) Generateatotalof120PersonalandNon-ManagerCaseCreditswithinany2consecutiveMonthperiod,and

2) BeanActiveSalesLeadereachMonthduringthesameperiod.

(d)FromthedatethatanUnrecognizedManagerhasgenerated120PersonalandNon-Managercasecredits,he/shebecomesaRecognizedManagerandwillbegintoaccrueLeadershipBonusesandLeadershipCaseCreditsonAccreditedSalesaslongashe/she isLeadershipBonusQualified.

(e)IfthequalificationoccurstheMonthimmediatelyafterbecominganUnrecognizedManager, theCaseCredits thatwerenot associatedwith aDownlineManagermove-upduringtheMonthofmoveuptoUnrecognizedMangercanbecountedfor the RecognizedManager qualification.

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5.03 Sponsored Manager:

(a) AManagerbecomesaSponsoredManagertohis/herimmediateuplineSponsorby

1) QualifyingasaRecognizedManager,or

2) Qualifyingas a SponsoredManager from InheritedorTransferredManagerstatus.

(b)ASponsoredManagercanbecountedforhis/heruplineManager’squalificationfortheGemBonus,GemManagerstatus,andforanyotherincentivethatrequiresSponsored Managers.

5.04 Inherited and Transferred Manager:

(a)WhenaManagerterminates,theentiredownlineorganizationwillbemovedupdirectlyundertheterminatedManager’spresentSponsorandwillremain in itscurrent generation sequence.

(b)If the terminated Manager is a Sponsored Recognized Manager, and has any1st Generation Recognized Managers in his/her organization, these Managerswill be classified as InheritedManagers in the newly appointed Sponsor’s 1stGeneration.

(c)InheritedManagerstatusdoesnotaffecttheVolumeBonusorLeadershipBonuspaidtoanyManagerorhis/herupline.TheactivityofanInheritedManagerdoesnotcountfortheuplineManager’squalificationfortheGemBonus,CaseCreditreduction for theEarned IncentiveProgram,orGemManager status.

(d)AManagerwho internationallySponsors intoacountryother than theoriginalcountryofsponsorshipshallbeaTransferredManager.TheactivityofaTransferredManagerdoesnotcountforhis/heruplineManager’squalificationfortheGemBonus,casereductionfortheEarnedIncentiveProgram,orGemManagerstatus.

(e)A Transferred or Inherited Manager can qualify as a Sponsored Manager bymeeting the following requirements:

1) Generateatotalof120PersonalandNon-ManagerCaseCreditswithinany2consecutiveMonthperiod.

2) BeanActiveSalesLeaderduringthesameperiod.

3) Ifrequalifyinginaforeigncountry,beanActiveSalesLeaderinhis/herHomeCountry,orgenerate4PersonalCaseCreditsinthecountrywherehe/sheisachievingSponsoredManagerstatus.

6 Leadership Bonus (LB)6.01 After an FBO becomes a RecognizedManager, he/she can qualify for Leadership

Bonuses by developing and supporting DownlineManagers, and by continuing tosponsor and train FBOs.

6.02 (a)ARecognizedManagerwho isActiveandhas12ccPersonal andNon-Manager(orhasActivityandLeadershipBonusWaivers)inanySingleOperatingCompany


during the current Month, qualifies for Leadership Bonuses generated in thatSingle Operating Company during thatMonth.

(b)ThePersonalandNon-Managerrequirementisreducedto8cciftheManagerhad2downlineManagers,eachinseparatesponsoredlines,whoeachhad25TotalCaseCreditsduringthepreviousMonth.Itisfurtherreducedto4ccPersonalandNovusCustomerifhe/shehad3downlineManagers,eachinseparatesponsoredlines,whoeachhad25TotalCaseCreditsduringthepreviousMonth.

6.03 ALeadershipBonus,basedonthetotalSRPofaManager’sPersonalandNon-ManagerAccreditedSalesofthequalifyingmonth,ispaidtohis/heruplineLeadershipBonusQualifiedManagersatthefollowingrates:

a) 6%ispaidtothefirstuplineLeadershipBonusQualifiedManager.

b) 3%ispaidtotheseconduplineLeadershipBonusQualifiedManager.

c) 2%ispaidtothethirduplineLeadershipBonusQualifiedManager.

6.04 (a) A RecognizedManager who is not Active for three consecutiveMonths loseseligibility to qualify for Leadership Bonus.

(b) ARecognizedManagerwhohaslosteligibilitytoqualifyforLeadershipBonuscanregaineligibilitybymeetingthefollowingrequirementsinanysingleOperatingCompany:

1) Generateatotalof12PersonalandNon-ManagerCaseCreditseachMonthforaperiodof3consecutiveMonths(evenifhe/shedoesnothaveanydownlineManagers).

2) BeActiveeachMonthforthesameperiod.

(c)Uponregainingeligibility,LeadershipBonuswillaccrueeachmonththeManagerisLeadershipBonusQualifiedthereafter,beginningwiththe4thMonth,whichwillbepaidonthe15thofthe5thmonth.

7 Additional Incentives 7.01 AllCompany incentiveprogramsare intendedtopromotesoundbusinessbuilding

principles. This includes the proper sponsoring and selling of product in usable,resalable quantities. Incentive points and prizes are not transferable, and will beawardedonlytotheFBOwhoqualifiesbybuildingthebusinessinaccordancewiththe letter and spirit of the FLPMarketingPlan andCompanyPolicies.

7.02 Recognitionpinswillbeawardedonlytotheperson(s)whosenamesappearontheForeverBusinessOwnerApplicationFormonfileattheHomeOffice.

7.03 (a)IntheeventanFBO’sspousedoesnotattendanEarnedTrip,theFBOmaybringaguestprovidedthattheguestis14yearsofageorolder.

(b)Earned Trips are limited to the following: Global Rally, Eagle Manager Retreat,Sapphire,DiamondSapphire,Diamond,Double-Diamond,andTriple-Diamondtrips

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8 Manager and Beyond Awards8.01 AManager can combine1stGenerationSponsoredRecognizedManagers fromall

countriesforthepurposeofbeingrecognizedasSeniorthroughDiamondCenturionManager.However,each1stGenerationManagercanonlybecountedonce.

8.02 All recognitionpins forManager levelandaboveareawardedonlyataCompany-approved recognition meeting.

8.03 Recognized Manager:whenanFBOqualifiesunder the requirementsas set for in5.01, he/she is recognized as RecognizedManager and receives a gold pin.

8.04 Eagle Manager Status:

(a)EagleManagerStatus isearnedandrenewedeachyear.AManagercanqualifybymeeting the following requirements during the qualification period ofMaythrough April, after qualifying as a Recognized Manager:

1) BeActiveeverymonth. 2) BeLeadershipBonusQualified (even ifhe/shehasnodownlineManagers).

Case Credits generated during themonths he/she is not Leadership BonusQualified will NOT count toward this incentive.

2) Generateatleast720TotalCaseCredits,includingatleast100NEWCaseCredits. 3) Personallysponsoranddevelopatleast2newSupervisorlines. 4) Supportlocalandregionalmeetings.

(b)Inadditiontotherequirements listedabove,SeniorManagersandabovemustalsodevelopandmaintainDownlineEagleManagers,asoutlinedinthefollowingschedule.EachDownlineEagleManagermustbeinaseparatesponsorshipline,withoutregardtohowmanygenerationsdown.ThisrequirementisbasedontheManagerpositionqualifiedforatthebeginningofthequalificationperiod.

1) SeniorManager:1DownlineEagleManager. 2) SoaringManager:3DownlineEagleManagers. 3) SapphireManager:6DownlineEagleManagers. 4) Diamond-Sapphire:10DownlineEagleManagers. 5) DiamondManager:15DownlineEagleManagers. 6) Double-DiamondManager:25DownlineEagleManagers. 7) Triple-DiamondManager:35DownlineEagleManagers. 8) Centurion-DiamondManager:45DownlineEagleManagers.

(c)All requirements must be achieved in a single Operating Company, with theexceptionoftheNEWCaseCreditrequirementandtheDownlineEagleManagerrequirement, as clarified below.

(d)Responsored FBOs are included in the new Supervisor and NEW Case Creditrequirements.

(e)AManagercancombineNEWCaseCreditsfromvariouscountriestocounttowardthe 100 NEW Case Credit requirement.


(f)AManager can combine downline EagleManagers from various countries for thepurposeofachievingEagleManagerstatus.IfaManagerhassponsoredthesameFBOintomultipleCountries,heorshecancountEagleManagersunderthatFBOinthevariousCountries,butnodownlineEagleManagercanbecountedmorethanonce.

(g)IfanFBOachievesManagerduringthequalificationperiod:

1) Any Novus Customers he/she sponsored during the final month of move-upwill count toward thenewSupervisor requirement for thatqualificationperiod’s Eagle Manager Program.

2) TheEagleManagerrequirementsareNOTprorated; rather,he/sheneedstoaccomplish the 720-Total/100-NEWCase Credits and the 2-new SupervisorsduringtheremainderofthequalificationperiodafterachievingManagerLevel.

(h) UponcompletionofallrequirementstoachieveEagleManagerStatus,theFBOwillbeawardedanEarnedTrip toattend theannualEagleManager’sRetreat.This will include:

1) Airfarefortwoandthreenight’slodging. 2) AninvitationtotheexclusiveEagleManager’sTraining. 3) AccesstoalleventsrelatingtotheEagleManager’sRetreat.

8.05.1Global Leadership Team

(a)MembershipintheGlobalLeadershipTeamisearnedandrenewedeachyearbygenerating7,500TotalCaseCreditsduringthecalendaryearafterqualifyingasaRecognized Manager.

(b)Managers achieving theGlobal LeadershipTeamwill be invited toanexclusiveglobal retreat, and will receive Recognition and Awards at the Global Rally.

(c)ManagersmustattendtheGlobalRallytoreceiveGlobalLeadershipTeamAwards.

8.05 Senior Manager: When a Manager has 2 1st Generation Sponsored RecognizedManagers,he/sheisrecognizedasSeniorManagerandisawardedagoldpinwithtwo garnets.

8.06 Soaring Manager: When aManager has 5 1st Generation Sponsored RecognizedManagers,he/sheisrecognizedasSoaringManagerandisawardedagoldpinwithfour garnets.

8.07 Gem Manager Awards

(a) Sapphire Manager: WhenaManagerhas91stGenerationSponsoredRecognizedManagers, he/she is recognized as Sapphire Manager, and is awarded:

1) Agoldpinwithfoursapphires.

2) A4-day,3-nightall-expense-paidtriptoaresortwithintheRegion.

(b)Diamond-Sapphire Manager:WhenaManagerhas171stGenerationSponsoredRecognizedManagers,he/sheisrecognizedasDiamond-SapphireManagerandisawarded:

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1) Agoldpinwithtwodiamondsandtwosapphires. 2) Aspeciallydesignedsculpture. 3) A5-day,4-nightall-expense-paidtriptoaluxuryresortwithintheRegion.

(c) Diamond Manager:WhenaManagerhas251stGenerationSponsoredRecognizedManagers, he/she is recognized as DiamondManager and is awarded:

1) Agoldpinwithonelargediamond. 2) Abeautifullydesigneddiamondring. 3) A waiver of case volume requirements for Earned Incentives and Volume

Bonus, provided a minimum of 25 1st Generation Sponsored RecognizedManagers are Active each month.

4) A7-day,6-nightall-expense-paidtriptoaluxuryresortoutsidetheRegion.

(d) Double Diamond Manager: When a Manager has 50 1st Generation SponsoredRecognizedManagers,he/sheisrecognizedasDoubleDiamondManagerandisawarded:

1) Aspeciallydesignedgoldpinwithtwolargediamonds.

2) A10-day,9-nightall-expense-paidtriptoSouthAfrica.

3) Anexclusivepenaccessorizedwithdiamonds.

(e) Triple Diamond Manager:When aManager has 75 1st Generation SponsoredRecognizedManagers, he/she is recognized as TripleDiamondManager and isawarded:

1) Aspecially-designedgoldpinwiththreelargediamonds.

2) A14-day,13-nightall-expense-paidtriparoundtheworld.

3) Anexclusive,personalizedwatch(selectedbyFLP).

4) Aspecially-designedsculpture(selectedbyFLP).

(f)Diamond Centurion Manager:WhenaManagerhas1001stGenerationSponsoredRecognizedManagers,he/sheisrecognizedasDiamondCenturionManagerandis awarded:

1) Aspecially-designedgoldpinwithfourlargediamonds.

9 Gem Bonus9.01 (a)ALeadershipBonusQualifiedGemManagerwho,intheCountryofQualification,has

therequirednumberofActive1stGenerationSponsoredManagersduringthecurrentMonth,ortherequirednumberofseparatesponsoreddownlineswithaManagerwhohas25ormoreTotalCaseCreditsduringthepreviousMonth,willreceiveaGemBonusbasedonthetotalSRPofhis/her1st,2nd,and3rdGenerationManagers’PersonalandNon-ManagerAccreditedDomesticSalesaccruedinthatcountryduringthatMonth,asperthefollowingschedule:

1) 9Active1stGenerationSponsoredManagers,or9separatesponsoreddownlines,eachwithaManagerwhohas25ormoreTotalCaseCredits=1%


2) 17Active1stGenerationSponsoredManagers,or17separatedsponsoreddownlines,eachwithaManagerwhohas25ormoreTotalCaseCredits=2%

3) 25Active1stGenerationSponsoredManagers,or25separatesponsoreddownlines,eachwithaManagerwhohas25ormoreTotalCaseCredits=3%

(b)A Manager may count a foreign 1st Generation Manager toward Gem BonusqualificationprovidedthattheforeignManagerhasqualifiedasaSponsoredManagerin thecountry inwhich theManager isqualifying forGemBonus.After the foreignManagerqualifies as a SponsoredManager, he/shewill be countedby theirUplinetowardtheGemBonusqualificationduringthosemonthsthattheforeignManagerhasan ActivityWaiver from his/her Home Country.

(c)GemBonus ispaidbyeachcountrybasedontheSRPoftheDomesticPersonalandNon-ManagerAccreditedSalesactivityofManagers in thatcountry.Toqualify foraGemBonusfromanycountry,aManagermusthavetherequirednumberofActive1stGenerationSponsoredManagers,or25ccManagerDownlines,inthatcountryforthemonth inwhichhe/she isqualifying forGemBonus.

10 Earned Incentive Program (Forever2Drive)10.01(a)AnActiveRecognizedManager iseligibletoparticipate intheEarnedIncentive

Program.

(b)ThreelevelsoftheEarnedIncentiveProgramareavailable:

1) Level1:TheCompanywillpayamaximumof$400permonthforamaximumof 36 consecutive Months.



(c)3consecutivemonthsarerequiredtoqualify,asoutlinedinthefollowingtable:

EarnedIncentiveQualification/MaintenanceRequirements

MonthLevel1

TotalCaseCredits

Level2 TotalCaseCredits

Level3TotalCaseCredits

1 50 75 1002 100 150 2003 150 225 300

(d)Duringtheperiodof36Monthsimmediatelyfollowingqualification,theManagerwill receive themaximumpaymentamount for the levelachievedeachMonththat theMonth 3 Case Credit requirement ismaintained.

(e)IftheManager’sTotalCaseCreditsdropbelowtheMonth3requirementduringanyMonth,thatMonth’sEarnedIncentivewillbecalculatedat$2.66timestheManager’s Total Case Credits for that Month.

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(f)IftheManager’sTotalCaseCreditsdropbelow50inanygivenmonth,theEarnedIncentiveforthatmonthwillnotbepaid.IfinthesubsequentmonthsthequalifyingManager’scasecreditsincreaseto50ormore,theEarnedIncentivewillbepaidinaccordancewiththepolicyassetforthabove.

(g)AManagerwhohas5personally-sponsoredActiveRecognizedManagersduringthe3rdqualificationMonth,oranyMonthduringthe36-Monthperiod,willhavetheMonth3requirementreducedto110,175,or240TotalCaseCreditsforlevels1,2or3,respectively.

(h)Forevery5additionalpersonally-sponsoredActiveRecognizedManagersduringthe third qualificationMonth, or anyMonth during the 36-Month period, theMonth3requirementwillbereducedbyanadditional40,50or60casecreditsforlevels1,2or3, respectively.

(i)CaseCreditswill count toward thequalificationandmaintenance requirementsonly during the months in which the Manager is Active.

(j)The Case Credits generated by an Active FBO before becoming a RecognizedManager will count toward the Earned Incentive qualification.

(k)AftercompletingthethirdqualifyingmonthforanEarnedIncentive,aManagermayqualifyforahigherIncentiveatanytimestartingwiththeverynextmonth.Forexample, ifaManagerqualifies for level1 in January,February,andMarchwith50,100,and150CC,andthengenerates225CCinApril,theLevel1paymentperiodwouldbereplacedwithanew36-MonthpaymentperiodforLevel2.

(l)Attheendofthe36-Monthperiod,aManagermayre-qualifyforanewEarnedIncentive using the same qualifications as outlined above. This requalificationcanbesatisfiedduringany3consecutiveMonthswithinthelast6Monthsoftheoriginal 36-Month period.

11 Chairman’s Bonus11.01 (a) Core Requirements For All Levels.AnFBO,afterbecomingaRecognizedManager,

mustfulfillALLofthefollowingrequirementseitherintheDomesticCountry,ortheQualifyingCountry.Theycannotbecombinedfromdifferentcountries.

1) BeActiveandLeadershipBonusqualified(evenifhe/shedoesnothaveanydownlineManagers).CaseCreditsgeneratedduringthemonthshe/sheisnotLeadership Bonus qualified will NOT count toward this incentive.

2) ThefollowingrequirementsmaybeachievedinanyParticipatingCountry:

a. BequalifiedfortheEarnedIncentiveProgram.

b. Purchaseproductsas requiredonlyafter75%ofpriorproduct inventoryhas been utilized.

c. BuildtheFLPbusinessaccordingtocorrectMLMprinciplesandCompanyPolicies.

d. AttendandsupportCompanysponsoredevents.


3) Finalacceptance intotheChairman’sBonus Incentive issubject toapprovalbytheExecutiveCommittee.TheExecutiveCommitteewilltakeintoaccountall theprovisions in theCompanyPolicy includingbutnot limitedtoall theclauses in section 16.02 of the Company Policy.

(b)Chairman’s Bonus Manager (CBM) Level 1. InadditiontotheCoreRequirements,thefollowingmustbeachievedintheQualifyingCountry,unlessotherwisenoted:

1) Accumulate700PersonalandNon-ManagerCaseCreditsduringtheincentiveperiod after becoming a Recognized Manager, the sum of which mustinclude150NEWCaseCredits.TheNEWCaseCreditsmaybegeneratedandcombinedinanycountry.Amaximumof150NEWCaseCreditsfromoutsidetheQualifyingCountrycanbecounted.However,forpurposesofcalculatingIncentiveShares,NEWCaseCreditsgeneratedoutsidetheQualifyingCountrywill not be counted.

2) Other thantheallowableNEWCaseCredits,allPersonalandNon-ManagerCase Credits must be generated in the Qualifying Country.

3) Developoneofthefollowinginanygeneration:

a. A downline Recognized Manager that accumulates 600 or more totalgroupcasecreditsinyourQualifyingCountryduringtheincentiveperiodafterbecomingaRecognizedManager.ThisManagermaybeanexistingManager or newly developed during the incentive period.

Or,

b. AdownlineCBMinanyParticipatingCountry.

4) The600ccManager’scasecreditswillnotbeincludedwhencalculatingtheIncentiveShares.

5) Onlycasecredits forthemonthsthe600ccManagerqualifiesasActivewillcount for this requirement.

6) AResponsoredFBOcountstowardallLevel1requirements.

7) IfanFBOachievesManagerduringthequalificationperiod,anynewNovusCustomer lines he/she sponsored during the final month of move-up willcounttowardtheNEWCaseCreditrequirementsforthatqualificationperiod’sChairman’s Bonus program.

(c) Chairman’s Bonus Manager (CBM) Level 2.InadditiontotheCoreRequirements,thefollowingmustbeachievedintheQualifyingCountry,unlessotherwisenoted:


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3) Develop3CBMsinanygeneration,eachinseparatedownlines,inanyParticipatingCountry.



(d) Chairman’s Bonus Manager (CBM) Level 3.InadditiontotheCoreRequirements,thefollowingmustbeachievedintheQualifyingCountry,unlessotherwisenoted:



3) Develop6CBMsinanygeneration,eachinseparatedownlines,inanyParticipatingCountry.



(e) Chairman’s Bonus Incentive Calculation.

1) Aglobalbonuspoolwillbedeterminedandthenallocatedasfollows:

a.OnehalfofthepoolwillbepaidtothosewhoqualifyinLevel1. b.OnethirdofthepoolwillbepaidtothosewhoqualifyinLevel2. c.OnesixthofthepoolwillbepaidtothosewhoqualifyinLevel3.

2) ThequalifyingCBMwillbeawardedoneIncentiveShareforeachofhis/herTotal Case Credits generated in the Qualifying Country (but not includingtheNEWCaseCreditsgeneratedoutsideoftheQualifyingCountry),plustheIncentiveSharesgeneratedby thefirstCBM ineachofhis/her sponsorshiplines in any Participating Country.

3) Eachpooldivisionwill bedividedby thegrand total IncentiveSharesofallCBMswhoqualifiedforthatpooldivisiontodeterminethemoneyfactorfor


thatdivision.ThismoneyfactorwillbemultipliedbytheIncentiveSharesofeach individual CBM to arrive at the payment amount of the Incentive.

(f)Chairman’s Bonus Global Rally Award.

1) Unless qualified for a 1.5k or higherGlobal RallyAward, eachCBMwill beawardedatriptotheFLPGlobalRallytoberecognizedandreceivehis/herbonus. This trip for two includes:

a) Airfare,lodging,mealsfor5daysand4nights.

b) Spending allowance equivalent to $250USD provided on a Global RallyCard.

12 FLP Global Rally12.01(a)AnFBOcanqualify fora trip for two to theFLPGlobalRally, includingairfare,

lodging,mealandactivityallowances,andspendingcash,,byaccumulating1,500ormoreTotalCaseCreditsfromJanuary1stthruDecember31stofeachyear.Inordertoreceivethebenefitsofthisincentive,thequalifyingFBOmustattendthetrainingandmotivationalmeetingsof thefirstGlobalRallyafter thequalifyingperiod.

(b)Inordertoachievethe1,500CaseCreditandhigherGlobalRallyawards,anFBOmay combine Case Credits from all the countries where he/she has a group.

(c)Non-ManagerCaseCreditsgeneratedduringanyMonththatanFBOisnotActive,andLeadershipcasecreditsgeneratedduringanyMonththataManager isnotLeadershipBonusQualified,willnotcountfortheGlobalRallyawards;however,any Active Case Credits generated by the FBOwill count regardless of Activitystatus.

(d)An FBO qualifies by generating Total Case Credits, and receives Global RallyAwards,asoutlinedbelow.EachqualifyingFBOwillreceiveeithermealsprovidedbytheCompanyoramealallowanceproportionatetohis/herqualification.TheFBOmust attend the Rally to receive the Awards.

(e)Chairman’sBonusManager(under1.5K):

1) Airfare,lodgingandmealsfor5daysand4nights. 2) Spendingallowanceequivalentto$250USDprovidedonaGlobalRallyCard.

(f)1,500TotalCaseCredits(1.5K):

1) Airfare,lodgingandmealsfor6daysand5nights. 2) Spendingallowanceequivalentto$500USDprovidedonaGlobalRallyCard. 3) ARallyActivityAllowance.

(g)2,500TotalCaseCredits(2.5K):

1) Airfare,lodgingandmealsfor8daysand7nights. 2) Spendingallowanceequivalentto$1,000USDprovidedonaGlobalRallyCard.

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3) ARallyActivityAllowance.

(h)5,000TotalCaseCredits(5K):

1) Airfare,lodgingandmealsfor9daysand8nights. 2) Spendingallowanceequivalentto$2,000USDprovidedonaGlobalRallyCard. 3) ARallyActivityAllowance. 4) UseoftheVIPcheckoutintheRallyshoppingarea.

(i)7,500TotalCaseCredits(7.5K):

1) Airfare,lodgingandmealsfor9daysand8nights. 2) Spendingallowanceequivalentto$3,000USDprovidedonaGlobalRallyCard. 3) ARallyActivityAllowance. 4) UseoftheVIPcheckoutintheRallyshoppingarea.

(j)10,000TotalCaseCredits(10K):

1) Airfare,lodgingandmealsfor9daysand8nights. 2) BusinessClassflightaccommodationsto/fromtheRally. 3) Spendingallowanceequivalentto$3,000USDprovidedonaGlobalRallyCard. 4) ARallyActivityAllowance. 5) UseoftheVIPcheckoutintheRallyshoppingarea.

(k)12,500TotalCaseCredits(12.5K):

1) Airfare,lodgingandmealsfor9daysand8nights. 2) BusinessClassflightaccommodationsto/fromtheRally. 3) SpendingAllowanceequivalentto3,000USDprovidedonaGlobalRallyCard,

plus $9,500 deposited into his/her bank by his/her local Country office. 4) ARallyActivityAllowance. 5) UseoftheVIPcheckoutintheRallyshoppingarea.

(l)15,000TotalCaseCredits(15K)

1) Airfare,lodgingandmealsfor9daysand8nights. 2) BusinessClassflightaccommodationsto/fromtheRally. 3) $20,000USDprovidedonaForever‘Black’VisaCard. 4) ARallyActivityAllowance. 5) UseoftheVIPcheckoutintheRallyshoppingarea.

(m)20,000TotalCaseCredits(20K)(FirstYear)

1) Airfare,lodgingandmealsfor9daysand8nights. 2) BusinessClassflightaccommodationsto/fromtheRally. 3) Anexclusive,customdesignedexperience;plus$20,000USDprovidedona

Forever ‘Black’ Visa Card. 4) ARallyActivityAllowance.


5) UseoftheVIPcheckoutintheRallyshoppingarea.

(n)20,000TotalCaseCredits(20K)(SubsequentYears)

1) Airfare,lodgingandmealsfor9daysand8nights. 2) BusinessClassflightaccommodationsto/fromtheRally. 3) $35,000USDprovidedonaForever‘Black’VisaCard. 4) ARallyActivityAllowance. 5) UseoftheVIPcheckoutintheRallyshoppingarea

13 Ordering Procedures13.01(a)ANovusCustomerordersdirectlyfromtheCompanyattheNovusCustomerPrice

untilbecomingWholesaleQualified.Afterthat,he/shepurchasesattheAdjustedWholesalePrice.

(b)All orderswith appropriate paymentmust be submitted to an authorized FLPproductcentersonthelastcalendardayoftheapplicableMonthtoqualifyforabonus generated for that Month.

(c)Allordersmustbepaid infullbeforeprocessing.Acceptableformsofpaymentinclude credit card (Visa, MasterCard or K-Net), Cash & FBO’s Check.

(d)AnydiscrepancyinconditionorquantitiesmustbereportedtoCustomerCarenolater than 10 days after the date the orderwas placed.

(e)AnFBOmaynotordermorethan25CaseCreditsinanycalendarMonthwithoutprior Home Office approval.

(f)TheminimumFBOorderisAED200(oritsequivalentlocalcurrency)inproduct,not including literature or taxes.

(g)Allordersaresubjectto,andalldeliveriesconditionedon,thefinalacceptancebytheHomeOfficeofFLP.ReceiptofbonusisevidenceofacceptancebytheHomeOffice.

(h)Whenorderingaproductthatwasthesubjectofapriororder,theFBOiscertifyingtotheCompanythat75%ofthepriororderofthatproducthasbeensold,usedorotherwiseutilized.

14 Responsoring Policies14.01(a)AnexistingFBOcanresponsorunderadifferentSponsorprovidedthat,duringthe

preceding24months,he/shehas:

1) BeenanFBO,and

2) NotpurchasedorreceivedanyFLPproducts,eitherfromtheCompanyorfromany other source, and

3) NotreceivedpaymentsofanykindfromanFBO,and

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4) NotsponsoredanyotherindividualsintotheFLPbusiness.

(b)The FBO being responsored must sign and have notarized an affidavit underpenaltyofperjurywithrespecttotheabovepolicybeforeresponsoringwillbeallowed.

(c)If there is a second-named person on the responsoring FBO Business, he/shewill not be included as part of the responsored FBO Business. Such second-namedperson is theneligible to responsorunder any FBO,having fulfilled therequirements listed in paragraphs (a) and (b) of this section.

Ifthesecond-namedpersonwishestoresponsorunderthefirst-namedpersonofanFBOBusinessthatisnotbeingresponsored,he/shemaydosowithouthavingto fulfill the requirements listed in paragraphs (a) and (b) of this section.

(d)AresponsoredFBObeginsagainasaNovusCustomerunderthenewSponsorandlosesanydownlineacquiredtothatpointinallcountriesintowhichhe/shewaspreviously sponsored.

(e)AresponsoredNovusCustomercountsasanewly-sponsoredNovusCustomerforall incentives and promotions.

15 International Sponsoring Policies15.01(a)ThispolicyaffectsallInternationalSponsoringafterMay22,2002.

(b)TheproceduresandpoliciesforInternationalSponsoringareasfollows:

1) The FBO must contact the Head Office of his/her Home Country, or thecountryintowhichhe/shewishestosponsor,andrequesttobeinternationallysponsored into the desired country.

2) TheFBO’soriginalIDnumberwillbeusedinallcountriesintowhichhe/sheisinternationally sponsored.

3) The FBO’s sponsorwill be the personwho appears as the sponsor on his/her very first application form accepted by FLP, except in the case of aResponsorship or a Novus Customer 6-month Sponsor change.

4) The FBO will automatically start at the current attained Sales Level in allcountries into which he/she is internationally sponsored.

5) Case Credits generated in one Operating Company cannot be combinedwiththosegenerated inanotherOperatingCompanytoachieveSalesLeveladvancementsortoqualifyforBonusorEarnedIncentivepayments.However,theymaybecombinedtoqualifyfortheGlobalRallyincentive,andtheNEWCASE CREDIT requirements of the Chairman’s Bonus and Eagle Managerprograms.

6) WhenanFBOachievesaSalesLevelinanycountry,itisreflectedinallothercountries the following month.

7) If an FBO who has not yet achievedManager in his/her Home Country is


moveduptoManagerlevelinaforeigncountry,he/shemustbeActiveduringthemoveup period andhave at least 25 Personal andNon-Manager CaseCreditseitherintheHomeCountryorinthecountryofmoveupduringthefinalMonth ofmove up in order to be a RecognizedManager.

8) WhenanFBOchangesresidencetoadifferentcountry,he/shemustnotifytheoldcountryofresidencesothattheaddresscanbechangedandanewHomeCountry assigned.

16 Prohibited Activities16.01TheExecutiveCommittee’sdecisiontoterminateaForeverBusinessortodisallow,

realignoradjustthePersonalDiscount,Bonuses,CaseCredits,compensationoranyincentiveawardsforanyFBO’sinvolvementinactivitiesoromissionsthatarenotinconformancewithCompanyPoliciesshallbefinal.IntentionalactsofomissionanddisregardfortheCompanyPoliciesbyanFBOshallbeseverelydealtwithwhichmayincludeterminationandlegalactionfordamages.

16.02Prohibitedactivitiescausinggrounds for terminationand liability foranydamagescausedbysuchactsinclude,butarenotlimitedto,thefollowingconduct:

(a) Fraudulent Sponsoring.AnFBOisprohibitedfromsponsoringindividualswithoutthe knowledge of and execution of a Forever Business Owner Application andAgreementbysuchindividuals;thefraudulentsponsoringofanindividualasanFBO; or the sponsoring or attempted sponsoring of non-existent individuals asFBOs or Customers (“phantoms”) to qualify for commissions or bonuses.

(b)Bonus Buying.AnFBOisprohibitedfromorderingmoreproductthanrequiredtomeetimmediatesalesneeds,andadditionalproductsmaybepurchasedonlyafter 75% of that product’s inventory has been sold, consumed or otherwiseutilized. An FBO is prohibited from purchasing products or encouraging otherFBOs to purchase products solely for the purpose of qualifying for bonuses,andfromusinganyothermechanismbywhichstrategicpurchasesaremadetomaximizecommissionsorbonuseswhenanFBOdoesnothaveabonafideuseforthe products purchased. In order to ensure no inventory loading is occurring:

1) EachFBOwhoordersproductthatwasthesubjectofapriorordershallalsobeconfirmingandcertifyingtotheCompanythat75%ofthepriororderofthatproducthasbeensoldorotherwiseutilized.EachFBOshouldkeepaccuraterecordsofmonthlysales,whichrecordscanbesubjecttoinspectionbytheCompanyuponreasonablenotice.Suchrecordswillincludereportsreflectinginventoryonhandattheendofthemonth.

2) The Company will be liberal in its application of the buy-back policy onterminationof a ForeverBusiness, but FLPwill not repurchaseproducts orissuerefundsonproductscertifiedashavingbeenconsumedorsold.Falselyrepresentingtheamountofproductsoldorconsumedinordertoadvanceinthe marketing plan shall be grounds for termination.

3) To discourage the FBO from encouraging other FBOs to circumvent the

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inventoryloadingprohibition,theCompanywillchargebacktoaterminatedFBO’suplineanybonusespaidonproductreturnedfromaterminatingFBO.

(c) Proxy Purchasing. AnFBOisprohibitedfrompurchasingproductinanyotherthanhis/her own name.

(d) Selling to Another FBO.Inadditiontoretailactivities,anFBOisprohibitedfromsellingproducttoanyFBOotherthanhis/herpersonally-sponsoredFBOs,butatnot lessthanwholesaleprice.AnyothersaletoanotherFBO,eitherdirectlyorindirectly,isaprohibitedtransactionforboththesellingandthebuyingFBO.TheequivalentCaseCreditofsuchaprohibitedsaleshallnotbeallowedforpurposesof meeting the Active requirement or qualification requirement for any otherbenefitswithintheMarketingProgram.Resultingadjustmentsshallbemadeforthis non-compliance.

(e)AnFBOisprohibitedfromengaginginactivitiesthatareprohibitedinallsectionsof 17.10, 19.02, and 20 as set forth herein.

(f)AnFBOisprohibitedfromappearingin,beingreferencedin,orallowingtheFBO’snameor likenesstobefeaturedorreferenced inanypromotional, recruitingorsolicitation materials for another direct sales company.

(g)AnFBOisprohibitedfromanyactionorfailuretoactwhichevidencesintentionaldisregard and gross negligence of Company Policies.

(h) Selling in Stores. 1) Except as hereinprovided in this Sectionbelow, an FBO is prohibited from

permittingCompanyproductstobesoldordisplayedinretailstores,militaryPXs, swapmeets, fleamarkets, or like exhibitions.However, exhibitions foraperiodoflessthanoneweekinatwelve-monthperiodatthesamevenueareconsideredtemporaryandarethereforepermittedafterreceivingwrittenapproval from the Home Office.

2) AnFBOwhohasaservice-orientedoffice,barbershop,beautyshoporhealthclubispermittedtodisplayandsellproductswithinthatoffice,shoporclub.However,exteriorsignsorwindowdisplaysbysuchFBOtoadvertisethesaleof Company products are prohibited.

3) AnFBOisprohibitedfromsellingormarketingForeverbrandproductexceptthatitbeinitsoriginalpackaging.However,productsmaybepromotedandserved in restaurants by the glass or portion.

(i) Using Unauthorized Literature.TheCompany’spriorwrittenapprovalisrequiredtouse,produceorsellanysalesaidormaterials,otherthanthoseprovidedbyFLP.

1)AnFBOisprohibitedfrompromotingorsellinganysalesaids,trainingmaterials,websites or Apps not provided by FLP, except to FBOs within his or her owndownline. Suchmaterials offered for sale to his or her own downlinemust beapproved by FLP, and be sold at a reasonable price.

(j)Selling Online.AnFBOisprohibitedfromtransactingthesaleofForeverproductusingany internetbased sales channelother than theCompanyprovided retailstorefront at foreverliving.com or Company approved 3rd party website.


(k)Selling to Others for Resale.AnFBO isprohibited fromsellingFLPproducts toanyone for the purpose of resale or entrusting others to sell FLP products.

(l)Sponsoring an FBO into Another Company.AnFBOisprohibitedfrom,directlyorindirectly,contacting,soliciting,persuading,enrolling,sponsoringoracceptinganyFBO,FLPcustomeroranyonewhohasbeenanFBOorCustomerwithinthelasttwelve(12)months,into,orencouraginganysuchpersoninanywaytopromoteopportunitiesinmarketingprogramsofanydirectsalescompanyotherthanFLP.

(m)AnFBOisprohibitedfromdisparagingotherFBOs,FLP’sproducts/services,theMarketingandCompensationPlan,orFLP’semployeestootherFBOsorthird-parties.Anyquestions,suggestionsorcommentsregardingtheseissuesshouldbedirected inwriting to FLP’s corporate officesonly.

(n) Making Product Claims. An FBO is prohibited from making claims as to thetherapeutic,safetyorcurativepropertiesoftheproducts.OnlysuchstatementsorclaimsthatareofficiallyapprovedbyFLPorareascontainedintheofficialFLPliteraturemaybemadeorused.AnFBOisprohibitedfrommakinganyclaimsthatFLP products are useful in the treatment, prevention, diagnosis or cure of anydisease. MedicalclaimsregardingFLPproductsarestrictlyprohibited. AnFBOshouldrecommendtoanycustomerwhoiscurrentlyunderaphysician’scareoranymedicaltreatment,thattheyseektheadviceofalicensedhealthcareproviderbefore altering his/her nutritional regimen.

(o) Making Earnings Claims. Unless FLP’s prior written approval is obtained,projectionsofincomeearningsandpotentiallymisleadingincomerepresentationsare strictly prohibited. Thefinancial successof an FBOdependsentirelyuponindividualeffort,dedication,andthetrainingandsupervisionprovidedtohis/herdownline and FLP business.

(p)Operating Business by Proxy. A Forever Business, and any resulting downline,createdoroperatedbyproxy,eitherintentionallyorinadvertently,isprohibited,and shall be adjusted for compliance with Company Policies by the ExecutiveCommittee.

(q) Exporting Product.AnFBOisauthorizedtopurchaseproductforthepurposeofsellingandusingsaidproductinthecountryinwhichitwaspurchased.AnFBOisprohibitedfrompurchasingproductforthepurposeofexportingsaidproductstoa countryoutside thecountry inwhich itwaspurchased,except forhis/herpersonal and family use in a countrywhere there is no authorized FLP office,without thewritten consentof theHomeOffice in Scottsdale,Arizona,USA.

(r) Advertising Price of Product.AnFBOisprohibitedfromanyformofadvertisingofourproductsatanypricebelowtheSuggestedRetailPrice.Thisincludesastatedprice or any other pricing formula that reduces the price paid for any Foreverproduct tobelowthatofSRP.

(s)AnFBOisprohibitedfromattemptinginanymannertoinduce,coerceorpersuadeanyotherFBOtoterminatehisorherposition,ceasedoingbusinessorreducehisorherbusinessbuildingactivitiesforanyreason.

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17 Company Policies17.01(a)TheFBOrelationshipwithFLPisoneofacontractualnature.Onlyadultindividuals,

18yearsofageorolder,maycontractwithFLPtobeanFBO.

1) An FBO is allowed, subject to specific conditions, to register a closely-heldbusiness entity to hold his/her Forever Business. A closely-held businessentityshallbedefinedasabusinessentityheldbytheoriginalprimaryFBO,orifrequiredbylaworapprovedbyFLP,two(2)shareholders,owners,membersor trusteeswillbeallowedwhomustbedirectly involved in theday-to-dayoperationofthebusiness(hereinafterreferredtoasthe“BusinessEntity”).InadditiontocompliancewithallofFLPstandardForeverBusinessrequirementsandFLPCompanyPolicies,theindividualFBO(s)willberequiredtoexecuteaForeverBusinessEntityAgreement,whichshallsupplement,beincorporatedandconsideredpartof,theForeverBusinessOwnerAgreement,outliningtheadditionaltermsandconditionsunderwhichtheFBOagreestooperateasaBusinessEntity.TheForeverBusinessEntityAgreementcanbeobtainedintheFormsandDownloadslinkavailableunderMyBusinessaftersigninginasanFBOatforeverliving.com.

2) The FBO is solely responsible for seeking individual professional adviceregardingtheestablishmentofabusinessentity,itstaxeffectsandanyothercontingentlegalissues.FLPexplicitlydisavowsanyresponsibilityandliabilitypertaining to an FBO’s decision to operate his/her Forever Business as aBusinessEntity.FLPdoesnotrepresentnorshallgiveanytax,accountingorlegaladviceregardingassigningone’sForeverBusiness toaBusinessEntity.

3) TheCompanyshallnotbeliableforanylossofprofit,indirect,direct,specialorconsequentialdamages,andforanyother losses incurredorsufferedbyanFBOasaresultoftransferringone’sdistributorshipfromhis/herindividualname to a business entity

(b)An FBO is considered an Independent Contractor, and is required to conducthis/her business within the terms of the Forever Business Agreement, and incompliancewiththeCompanyPoliciesthatareapplicableinthecountryinwhichhe/she is conducting business.

(c)AForeverBusinessconsistsofthepersonnamedontheForeverBusinessOwnerApplication form on file at the Home Office.

(d)AnFBOshallbeheldresponsibletoproperlymanagethehis/herForeverBusiness,specifically,butnotlimitedto,preventingfamilymembersfromusinginformationobtainedthroughsuchForeverBusiness tocircumventcomplianceofCompanypolicies required or evolving from the Forever Business of the FBO. An FBO’sfailure toproperlymanagehis/herForeverBusinessmay result in termination.

(e)In the event that thedownlines of an FBO sponsor into a foreign country andthe FBOhas not previously been sponsored into that country, the FBOwill beautomatically sponsored into that foreign country and agrees to the prevailingpolicies and local laws of that foreign country and agrees to be bound by thedispute resolution policies set forth herein.


17.02FLP agrees to sell the FBO product and pay volume bonuses as provided in theCompanyMarketingPlan,providedtheFBOisnotinviolationofsuchFBO’scontractwith FLP.

17.03AnFBOmaydevelophis/herownmarketingtechniques,solongastheyarenotinviolationofanyCompany,state,federalorjurisdictionalrules,regulationsorstatutes.

17.04AnytransferotherthanbyinheritanceofaForeverBusiness,withoutpriorCompanyapproval, isprohibitedandanysuchtransfershallbevoid.Forthepurposeofthisprovision,achangeofbeneficial interestofaTrustheldForeverBusinessshallbetreatedasatransfer,whichrequireswrittenapprovalbytheCompanytobevalid.

17.05Exceptashereinprovided,anFBOisprohibitedfrom,directlyorindirectly,changingSponsors. FLPwill only consider the first valid Application received by the HomeOffice. Subsequent applications shall bedisallowed.

17.06WhenanFBOchangesresidencetoadifferentcountry,he/shemustnotifytheoldcountryofresidencesothattheaddresscanbechangedandanewHomeCountryassigned.

17.07Errors or Questions. If an FBO has questions about or believes any errors havebeen made regarding the Personal Discount, bonuses, downline activity reports,charges,orchanges,theFBOmustnotifyFLPwithinsixty(60)daysofthedateofthepurportederroror incident inquestion. FLP isnotresponsibleforanyerrors,omissions or problems not reportedwithin sixty (60) days.

17.08 Voluntary Termination.

(a)AnFBOmayterminatehis/herForeverBusinessbysubmittingawrittenrequest,signed by all named individuals appearing on the current approved ForeverBusiness. Theeffective terminationdate is thedateonwhich theHomeOfficeacceptstheterminationrequest.TheterminatingFBOforfeits thecurrentsaleslevel andall downlines, including those in foreign countries, establishedat thetime.

(b)Once an FBO terminates, the spouse (if on the same FBO Business) is alsoconsidered terminated.

(c)Aftertwoyears,aterminatedFBOmayreapplysubjecttoHomeOfficeapproval.UponsuchapprovaltheFBOwillenterasaNovusCustomer,andwillnothavetheprevious downline organization restored.

17.09 Termination or Suspension for Cause.

(a)Terminationmeansaseveranceofalldomesticand internationalprivilegesandcontractualrightsavailabletoanFBO,includingtheprivilegetobuyanddistributetheproducts.TheTerminationwill result in the inability toqualify forBonuses,and severance of participation in all other benefit programs sponsored by theCompany.

(b)A terminated FBO shall, upon demand by FLP, be liable to repay, return orcompensateFLPforanybenefitprograms,prizes,inventories,orbonusesreceivedfromFLPfromandafterthedateoftheactivitiescausingsuchTermination.After

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recouping any costs or damages resulting from the terminated FBO’s conduct,forfeitedbonuses,causedbysuchTermination,shallbepaidtothenextqualifyingFBOuplinewho isnot inviolationofanyoftheCompanyPolicies.

(c)Aftertwoyears,aterminatedFBOmayreapplysubjecttoHomeOfficeapproval.UponsuchapprovaltheFBOwillenterasaNovusCustomer,andwillnothavetheprevious downline organization restored.

(d)Suspension is a temporary status that prohibits an FBO from placing orders,receiving profit and bonus payments, and sponsoring other FBOs.

(e)TheprofitsandbonusesofaSuspendedFBOshallbehelduntiltheFBOiseitherreinstatedorterminated.Ifreinstated,thewithheldpaymentsshallbepaidtotheFBO;otherwise they shallbedisbursed inaccordance to themarketingplan.

17.10 Internet Policies.

(a) Selling Products Online. Each FBOwill beoffered theopportunity topurchaseaCompany-approvedFBOwebsite,FLP360,formarketingproductsonlineusinga direct link to the Company’s Webstore at www.foreverliving.com . Onlineorders will be fulfilled directly by the Company on this website. This internetlinkisarrangedsothattheFLPpageswillremainwithintheFBO’swebsite.TheguestsvirtuallyneverleavetheFBO’swebsite.InordertomaintaintheintegrityofFLP’sbrandname,productlineandtheFBO/Customerrelationship,anFBOisprohibited fromsellinganyFLPbrandproductsonline throughan independentwebsite.E-Commercesalescanonlybemadedirectlybyorthroughalinktotheofficial Company Webstore at www.foreverliving.com.

(b)SponsoringanFBOonlineviaanelectronicsignatureapplicationoronlineformis prohibitedoutsideofthedirectapplicationorlinktotheofficialCompanywebsiteat www.foreverliving.com.

(c)Independent FBOwebsitesmarketing and promoting the products or businessopportunity,without online sales or sponsoring, are permitted so long as theycomply with or are modified to comply with Company Policies.

(d)AnFBOmaynotusethename“ForeverLivingProducts”oranyofitstrademarks,tradenames,productnames,domainname(URL)orcopyoruseanyCompanymaterialsfromanysourcethatmayresultinmisleadingorconfusingtheuserintothinkingtheFBO’swebsiteisthatoftheCompanyoranyofitsofficialaffiliates.FLPproductnamesarestrictlyproprietarytotheCompanyandcannotbeusedbyanyFBOasasponsoredlinkorforanyotherunauthorizeduse.AnindependentFBOwebsitemustclearlyindicatethatitrepresentsanindependentFBOwhoisnotanagentoftheCompanyoranyofitsworldwideaffiliates.

(e)TheFBOmustlinkanyindependentwebsite(s)totheCompany’sofficialwebsitecreated and maintained by the Company at www.foreverliving.com.

(f)All independent FBO websites must reflect and connect only to companies orproducts that carry the FLP label and be of good moral content.

(g) Electronic Advertising. IndependentFBOwebsites thathavebeenapprovedbytheCompany,orareaspartofanonlinebannerordisplayadsthatconformto


theCompany’sadvertisingguidelinesandhavebeenapprovedbyCompany,willbe allowed.Onlinebanners or display adsmust be submitted to theCompanyforapprovalpriortopostingonlineandmustlinkausertotheCompanywebsiteor an independent FBOwebsite that has been approved by the Company. AllelectronicadvertisingissubjecttoandcontrolledbytheCompanyPoliciesrelatingto advertising and promotional guidelines.

18 Legal18.01Dispute Resolution/Waiver of Jury Trial.

(a)IfacontroversyorclaimarisingoutoforrelatingtotheFBOrelationshiporFLPproductscannotberesolvedbynegotiations,theCompanyandFBOagreethatinordertopromotetothe fullestextentreasonablypossibleamutuallyamicableresolution of the dispute in a timely, efficient and cost-effective manner, he/shewillwaivehis/her respective rights toa trialby juryand settle thedisputeby submitting the dispute to the American Arbitration Association (AAA) forbindingarbitrationinMaricopaCounty,Arizona, inaccordancewiththewrittenproceduresadoptedbyFLPforresolutionofdisputes.MaricopaCounty,Arizonashall bedeemed the soleandexclusiveplace for jurisdictionandvenueof anydispute between the company and the FBO, and if appropriate, under FLP’sdispute resolutionprocedures, a courtof competent jurisdiction located in theStateofArizona,MaricopaCounty.TheForeverBusinessOwnerApplicationandAgreementshallbegovernedinallrespectsbythelawsoftheStateofArizona.

(b)Participating in the international sponsoring program is a privilege that giveseachFBOthechancetobenefitfromFLP’sinternationalnetworkofcompanies.The international sponsoring program is monitored from FLP’s home office inMaricopaCounty,Arizona.AnFBOparticipatingintheinternationalsponsoringprogramagreesandconsentstoanydisputesarisingoutoforrelatingtotheFBOrelationshiporFLPproducts,involvinganyoftheFLPaffiliatedcompanies,shallberesolvedthroughbindingarbitrationinMaricopaCounty,Arizona,pursuanttoForeverLiving.comandForeverLivingProductsInternational,LLC’scurrentdisputeresolutionpolicies as set forth above and statedon FLP’s Companywebsite atwww.foreverliving.com.

18.02Testamentary Transfers.

(a)ThetransferorassignmentofaForeverBusinessisprohibitedexceptintheeventof death or legal separation or divorce.

(b)AllForeverBusinessOwnerApplicationsthatcontaintwosignatures,regardlessof when signed, shall be treated as creating a Joint Tenancy with Right ofSurvivorship. If theFBOlives inacommunitypropertystate,thetreatmentwillbethatofCommunityPropertywithRightofSurvivorship.OntheconfirmationofdeathofanyoneofthetwosigningFBOs,theForeverBusinesswillautomaticallybetransferredtothesurvivorofthetwo.ThiswillbethecaseregardlessofwhatisstatedinaWillofthefirstFBOtobedeceased.Inaddition,thismeansthatwhentwopersonshavesignedontheForeverBusinessOwnerApplicationthesurvivor

32

ofthetwowillbethesoleFBOafterthedeathofthefirst.IfanFBOdoesnotwishthisresult, theymustcontacttheHomeOfficetoexpresshis/herneedsandtodetermineifsuchneedscanbeaccommodated.KeepinmindthatnochangeinaForeverBusinesscanbemadeduringyourlifetimeexceptinthecaseofalegalseparationordivorce.

(c)IftheFBOapplicationofalegallymarriedpersonhascheckedthemaritalstatusboxasbeingMarried,buttheapplicationonlycontainsthesignatureofoneofthemarriedparties,thecompanywilltreattheForeverBusinessasbeingaJointTenancy with Right of Survivorship.

(d)Forever BusinessOwner applications that have themarital status box checkedas being single and with only one signature will be treated by the companyaccordingly.

(e)Totransferasingleperson’sForeverBusinessondeath,suchFBOmusthaveaWillor useof aGrantor’s Trust.

(f)The Company recognizes Joint Tenancy with Right of Survivorship and use ofGrantorTrustsas legalmeansofholdingaForeverBusinessand intheeventofanFBO’sdeath,ameansoftransferringtheForeverBusinesstotheSurvivorornamedbeneficiaryrespectivelywithouthavingtogothroughprobateproceedingto get the property to the intendedheir.

(g)If the Forever Business is held in a Business Entity, the death of the primaryshareholder will not remove the Forever Business from the Business Entityso long as the ownership of the Business Entity remains in conformity withCompanypoliciesgoverningownershipofsuchBusinessEntity.ThetransferwillberecognizedbytheCompanywhenacourtorderorlegaldocumentsaddressingthe transfer are submitted to and approved by the Company.

(h)Within six (6) months following the date of FBO’s death, the surviving FBO,trusteeorestate representative shallprovidenotificationof suchdeath tohis/herDomesticHomeOfficeofFLP. Suchnotice isto includeacertifiedcopyofthe death certificate, a certified copy of theWill or Grantor’s Trust, or CourtOrder,authorizingthetransferof theForeverBusinesstoaqualifiedsuccessor.Aftersix(6)monthsfromthedateofdeath,FLPmayremovethedeceasedFBOfromtheForeverBusiness.Givingtimelynotificationandprovidingtherequireddocumentationforasuccessor’sinterest,willberequiredtopreventasuspensionand/orterminationoftheForeverBusiness.Ifbasedonvalidreasons,arequestforareasonableextensionoftimetoprovidetransferdocumentsmaybesubmittedtothedeceasedFBO’sFLPDomesticHomeOfficepriortotheendofthesix(6)month period. FLP reserves the right tomake payments to the joint survivor,beneficiary,trusteeorlegallyauthorizedpersonalrepresentativeoftheestateofadeceasedFBOpendingthetimelysubmissionofappropriatelegaldocumentation.

(i)TheinheritablerightstoaForeverBusinessarelimitedandrestrictedasfollows:

1) TheheirmustbeapersonwhocanqualifyasanFBO.

2) Becausetheheirmustbeanadultindividual,atrustorguardianshipmayhavetobeestablishedformultipleheirsorminorchildren.Intheeventatrustis


established,acopymustbeplacedonfilewithFLP.ItstermsmustclearlyallowthetrusteetoactasanFBO.Aguardianoratrusteeofatestamentarytrustmust be appointed by the court of proper jurisdiction and receive specificapprovaltobeFBOonbehalfoftheminors.

3) AtrusteeorguardianshallretaintheFBOstatussolongastheForeverBusinessOwneragreementisnotviolated,untilthebeneficiarieshaveattainedtheageofmajority, andanheir accepts the responsibilityofoperating theForeverBusinesswithprior approvalof the court.

4) A trustee, guardian, spouse or other representative-type FBO shall beresponsible for the actions of the beneficiary, ward, or his/her spouse forpurposes of following the policy terms of the Forever Business Owneragreement.AviolationofCompanypoliciesbyanyoftheabove individualsmay result in termination of the Forever Business.

5) TheinheritableForeverBusinesspositionwithintheCompanyMarketingPlanislimitedtorecognitionatnohigherthanthatofManager.However,bonusesshallbepaidatthesamelevelsandrequirementsasheldbythedeceased.AllSponsoredManagersbelongingtotheForeverBusinesswillbereclassifiedasInheritedManagers,whocansubsequentlyqualifyasaSponsoredManagersasoutlinedinSection5.04(e).ForeverBusinesspositionsbelowManagershallbeinheritedatthatlevel.

18.03Transfers Due to Divorce.

(a)Duringapendingdivorceornegotiationofapropertysettlement,FLPwillcontinuetodisbursepayments to theFBOaswasdoneprior to thependingaction.

(b)In the event of divorce or a legal separation, a legally enforceable propertysettlementagreementmaydecreetheForeverBusinessbegrantedtoonespouseortheother.TheForeverBusinesscannot,however,bepartitioned.OnlyoneadultindividualwillbeentitledtoretainthecurrentdownlineofthisForeverBusiness.TheotherspousemaychoosetoestablishtheirownForeverBusinessatthesameleveloftheMarketingPlanasestablishedwiththeex-spouse.Suchotherspousemustusetheoriginalsponsor.Theotherspouse’snewForeverBusinessshallbetreatedbythesponsorasInheriteduntilre-qualified.

19 Restrictive Covenants19.01Totheextentpermittedbylaw,FLP, itsdirectors,officers,shareholder,employees,

assignsandagents (collectively referred toas “Associates”) shallnotbe liable for,andtheFBOreleasesFLPanditsAssociatesfromandwaivesallclaims,foranylossofprofits,indirect,direct,specialorconsequentialdamages,andforanyotherlossesincurredorsufferedbytheFBOasaresultof:(a)FBO’sbreachoftheForeverBusinessOwnerAgreementofFLPCompanyPoliciesandProcedures; (b) thepromotionoroperationoftheFBO’sForeverBusinessandFBO’sactivitiesrelatedtoit;(c)FBO’sincorrectorwrongdataorinformationprovidedtoFLPoritsAssociates;or(d)theFBO’s failure to provide any information or data necessary for FLP to operate itsbusiness,includingwithoutlimitation,FBO’senrollmentandacceptanceintotheFLP

34

MarketingPlanandthepaymentofvolumebonuses.EACHFBOAGREESTHATTHEENTIRELIABILITYOFFLPANDITSASSOCIATESFORANYCLAIMWHATSOEVERRELATEDTOTHERELATIONSHIPOFAWARENESSINCLUDING,BUTNOTLIMITEDTO,ANYCAUSEOFACTIONSOUNDING INCONTRACT,TORT,OREQUITY,SHALLNOTEXCEED,ANDSHALLBELIMITEDTO,THEAMOUNTOFPRODUCTSFBOHASPURCHASEDFROMFLPTHATAREINRESALABLECONDITION.

19.02 Limited License to Use Company Marks.

(a)Thename“ForeverLivingProducts”andsymbolsofFLPandothernamesasmaybeadoptedbyFLPincludingFLPProductnamesareproprietarytradenamesandtrademarks of the Company.

(b)EachFBO ishereby licensedbyFLP touseFLP’s registered trademarks, servicemarks, and other marks (hereinafter collectively referred to as “Marks”), inconjunction with the performance of the FBO duties and obligations underthe Forever Business Owner Agreement and the corresponding policies andprocedures.AllMarksareandshallremaintheexclusivepropertyof“FLP”.TheMarksmayonlybeusedasauthorizedbytheForeverBusinessOwnerAgreementandtheFLP’scorrespondingpoliciesandprocedures.ThelicensegrantedhereinshallbeeffectiveonlyaslongastheFBOisingoodstandingandinfullcompliancewithFLP’spoliciesandprocedures.However,itisprohibitedforaFBOtoclaimanyownershipofFLP’sMarks(i.e.,registeringforadomainnameusingthename“FLP”,“ForeverLiving”,oranyotherFLPMarkinanyway,shapeorform)unlessithasbeenapprovedinwritingbyFLP.TheseMarksareofgreatvaluetoFLPandaresuppliedtoeachFBOforeachFBO’suseinanexpresslyauthorizedmanneronly.

(c)The FBO is not to advertise FLP products in any way other than through theadvertising or promotionalmaterialsmade available by FLP andmaterials pre-approvedbyanauthorizedofficerofFLP.EachFBOagreesnottouseanywritten,printed,recordedoranyothermaterialinadvertising,promotingordescribingtheproductorFLPmarketingprogram,orinanyothermanner,anymaterialwhichhasnotbeencopyrightedandsuppliedbyFLP,unlesssuchmaterialhasbeensubmittedtoFLPandapproved inwritingbyFLPbeforebeingdisseminated,publishedordisplayed.TheFBOherebyagreestomakenodisparagingrepresentationsaboutFLP,theproducts,theFLPcompensationplanorincomepotentials.

20 Confidential Information and Nondisclosure Agreement20.01(a)Downlinereportsandallotherreportsandgenealogical information,including,

butnotlimitedto,downlinesalesorganizationinformationandcommissionrecapstatements,areprivate,proprietaryandconfidentialtoFLP.

(b)Every FBOwho is providedwith such informationmust treat it as private andconfidentialandtakecaretomaintainitssecrecyandrefrainfrommakinganyusethereof foranypurposeother thanthemanagementofhis/herdownlinesalesorganization.

(c)An FBOmayhaveaccess toprivate andConfidential Informationwhichhe/sheacknowledges tobeproprietary,highly sensitiveandvaluable toFLP’sbusiness


and isbeingmade tohim/her solely andexclusively forpurposesof furtheringthesaleofFLPproductsandprospecting,trainingandsponsorshipofthirdpartieswhomaydesiretobecomeFBOsandto furtherbuildandpromotehis/herFLPbusiness.

(d)“Trade Secret” or “Confidential Information” shall also mean information,includingaformula,pattern,compilation,program,device,method,techniqueorprocess, that:

1) derives independent economic value, actual or potential, from not beinggenerally known tootherpersonswho canobtaineconomic value from itsdisclosure or use; and

2) is the subject of efforts that are reasonable under the circumstances tomaintain its secrecy.

(e)Whenever FLPmakes information available to the FBO, it shall be for the solepurpose of conducting FLP business.

(f)AnFBOisprohibitedfromusing,disclosing,duplicatingorotherwisemakinganyTrade Secret or Confidential Information available to anyone other than FBOs,without the prior written consent of FLP.

(g)An FBO is prohibited from, directly or indirectly, using, capitalizing upon orexploitinganyTradeSecretorConfidentialInformationforhis/herownbenefit,orforthebenefitofanyoneelse,otherthanforthepurposeofconductinghis/herFLP business.

(h)An FBO shallmaintain the confidentiality and security of the Trade Secret andConfidentialInformationinhis/herpossessionandtoprotectagainstdisclosure,misuse, misappropriation or any other action inconsistent with FLP’s rights.

(i) Further Restrictive Covenants. In consideration to FLP for the receipt of TradeSecretorConfidentialInformation,theFBOinherentlyagreesthatforthetermoftheForeverBusiness,theFBOshallnottakeorencourageanyaction,thepurposeoreffectofwhichwouldbetocircumvent,breach,interferewithordiminishthevalueorbenefitofFLP’scontractualrelationshipswithanyFBO.Withoutlimitingthe generality of the foregoing, for the term of the Forever Business, the FBOagreesnot todirectlyor indirectly, contact, solicit, persuade, enroll, sponsororacceptanyFBO,FLPcustomeroranyonewhohasbeenanFBOorCustomerforthelasttwelve(12)months,into,ortoencourageanysuchpersoninanywaytopromote,opportunitiesinmarketingprogramsofanydirectsalescompanyotherthan FLP.

(j)The agreements contained in the “Confidential Information” section of thesepoliciesshallremainforeverandinperpetuity.Theagreementscontainedinthe“FurtherRestrictiveCovenants”sectionofthesepoliciesshallremaininfullforceand effect during the termof the previously executed Forever BusinessOwnerAgreementbetweenFLPandtheFBO,andthereafteruntilthelaterofone(1)yearfromthelatestreceiptofanyConfidentialInformationortwelve(12)monthsaftertheexpirationand terminationof suchForeverBusinessOwnerAgreement.

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Marriage,31

MinimumOrder,23

Move-up,25

NovusProfit,5

NovusCustomerBonus,3

NovusCustomerPrice,5

Ordering:25ccLimit,13; 75%Re-OrderPolicy,30,33; inanothername,24;MinimumOrder,23; morethannecessary,23;Procedure,23

PersonalBonus,3,8

Pins,13-14

Promotingothercompanies,27

Proxy,operatingby,26-27

RecognizedManager,5,11

Refund,6-7

Responsoring,23

SapphireManager,14-15

Selling:inoriginalpackaging,30; instores,26;ontheInternet,30; tootherFBO’s,26;toothersforresale,30

SeniorManager,15

SoaringManager,15

SponsoredManager,12

Sponsoring:FLPFBO’sintoothercompanies,27; fraudulent,25;International,24; ontheInternet,30

Termination:forcause,29; voluntary,29

TradeMarks,33,34

Transfer,28,29,31-33

TransferredManager,12

TravelAwards,4

TripleDiamondManager,16

UnrecognizedManager,11

VolumeBonus,3

Websites:Company,30-31 FBO,30

WholesaleQualified,2,6

6-monthPolicy,10

75%Re-OrderPolicy,23,25

ActivityRequirement,6,10

AddressChange,25,29

Advertising,30;ontheInternet,30

Arbitration,31

BonusCalculation,10

BonusPayment,10

Chairman’s Bonus,1,3,5,18-21

Claims:earnings,27;medical,27;product,27

ConfidentialInformation,1,34,35

DiamondCenturionManager,14,16

DiamondManager,14,16

DiamondSapphireManager,15

DisputeResolution,28,31

FBO:requirementsof,6,10-16

FBOApplication,2,4-5,10,13,28,30-32

FBOSupport,2,12

Divorce,31,33

DoubleDiamondManager,16

Eagle Manager,4,14

Eagle Summit,13

EarnedIncentive,16-17

Exhibitions,26

Exportingproduct,27

GemBonus,1,16

GemManager,4,12,15-16

Global Rally,1,13,15,21

Guarantee,1,6-7

InheritableRights,32

InheritedManager,4,12,33

InternationalBonus,23,24

InternationalMove-up,23,24

InternationalSponsoring,23,24

InternetPolicies,30

JointTenancywithRightofSurvivorship,31

LeadershipBonus,1,3,4,6,9,12,16

Literature,6,23,24

Forever Living Products, GCCOffice & Product CentersFLP Middle East Head OfficeBlock B, B-23 & B-24, Road W B-21Dubai Airport Free Zone, P.O. BOX #54305, Dubai, UAETel: +971 4 2994800 | Fax: +971 4 2994887 / 4 2996654

DUBAITECOM - Floor 10, Office 10C-C, 10C 13, 10C-14, 10C-15 in I-Rise Tower, Al Thaniya 1st, Tecom, DubaiTel: +971 4 5134823

DEIRA - S.S Lootah Corporate Building, Salahudin Road Deira, P.O. BOX #54305, Dubai, UAE (Opposite Al Yasmeen Building near Abu Hail Metro Station)Tel: +971 4 2978114 | Fax: +971 4 2978113

ABU DHABIVilla 3/7 Al Murror Street, Near Al Fardan Exchange, same line with Abu Dhabi Cooperative Society, Abu Dhabi, UAETel: +971 56 808 3394

QATARVilla no.15, Beverly Hills, Al Waab Doha, QatarTel: +974 3129 3000 | Tel: +974 4478 6807

KUWAITMezzanine Floor, 130 Dawliah Commercial CenterP.O. Box #21262, Safat 13073, Kuwait CityTel: +965 2 2402015 | Fax: +965 2 2402016

JORDAN Rana Center, Ground Floor, Opp. Ibn Al Haytham HospitalAl Madina St., AmmanTel: +962 655 23338 | Tel: +962 655 23138

OMANVilla No. 240, Al Athaiba Street, Athaiba, Muscat, OmanTel: +968 24 618098

KINGDOM OF SAUDI ARABIA

RIYADHAl Qariah 1 Shopping Center1st Floor, Shop 207 Olaya, Riyadh, KSATel : +966 11 2151970 | Fax: +966 11 21 51971

AL KHOBAR Ground Floor, Shop #65, Al Khobar Mall,King Abdulazeez Street, along Dammam - Al Khobar High Way, Beside Tulip Inn & RedtagTel: +966 13 8878458 | Fax: +966 13 8878462

JEDDAHGround Floor, Al Hayah Commercial Center, Behind Radisson Blu Hotel-Al-Sharafiyah District, Madinah Road, P.O. BOX #41820, Jeddah-21531, KSATel: +966 12 6144700 | Fax: +966 12 6144600

AL AHSAStar Mall - Office #SF18, 2nd Floor, Prince Talal Bin Abdulaziz Street Crossing with King Khaled St. East and King Fahd Rd. West, Al Ahsa, KSATel: +966 13 5731817 | Tel: +966 13 5731819

Web: www.foreverliving.comEmail: [email protected]

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policy company - forever living products · 1 introduction 1.01 (a) forever living products (flp)...

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