Account
 
Policies & Procedures
 
 

STATEMENT

OF

POLICIES & PROCEDURES


 

 

STATEMENT OF POLICIES AND PROCEDURES

1. 4DG, LLC, hereinafter "Company," is direct selling Company marketing skin care and other beauty, health and consumer products to the consumer through Independent Representatives. The policies and procedures herein are applicable to all Independent Representatives (hereinafter "IRs") of the Company.

2. An IR is one who has completed a Company application and agreement and has been accepted by the Company as an IR. The Company reserves the right to accept or reject anyone as an IR.

3. All IRs must be the age of majority in the state in which they distribute Company products and services.

4. Unless waived in writing by the Company upon application, the Company will consider each married couple a single IR. Husbands and wives may not sponsor each other directly or indirectly, nor have different sponsors. If one spouse is already an IR, the nonparticipating spouse may elect to become an IR, but must join the same IR position as his or her spouse. The Company reserves the right to reject any applications for new IRs or applications for renewal. Should a husband/wife IR divorce, they should notify the Company as to how the IR position is to be managed thereafter. Otherwise, the Company will recognize the final judicial or adjudicatory disposition of the IR position.

5. IRs are independent marketing representatives of the Company and are not to be considered purchasers of a franchise or a distributorship. The agreement between the Company and its IRs does not create an employer\employee relationship, agency, partnership, or joint venture between the Company and the IRs. Each IR shall hold harmless the Company from any claims, damages or liabilities arising out of IR's business practices. Company IRs have no authority to bind the Company to any obligation. Each IR is encouraged to set up his\her own hours and to determine his\her own methods of sale, so long as he\she complies with the policies and procedures of the Company.

6. Transaction Submission Integrity. It is essential to the success of the Company, its IRs and customers that submissions of transactions to the Company maintain integrity of communication. It is to be expected that all transactions submissions to the Company,

including, but not limited to, IR applications, IR communication, IR financial transactions and consumer transactions, be submitted by the individual or entity involved in the transaction. Third party submission of any and all transactions submissions is prohibited. An IR may not communicate any transactions submissions on behalf of another IR, IR applicant or customer. An IR may not use his or her credit card or bank account on behalf of another individual or IR. This rule is applicable to any and all forms of transactions submissions, including, but not limited to, online, telephone, fax, email, etc.

7. Ethical Conduct. IRs will, at all times, conduct their business in a professional and ethical manner that is supportive to both the Company and other IRs. An IR shall engage in no conduct which negatively impacts, disrupts or impairs the reputation or business of the Company, its products/services or other IRs, including, but not limited to: disparagement of the Company, its officers or employees, its products/services or other IRs; manipulation of the compensation plan or unauthorized manipulation of the placement program or genealogy structures; undermines or is at odds with the training systems utilized by and authorized by the Company; conduct which is abusive, disrespectful, bullying or intimidating of other IRs, customers, employees, or affiliates of the Company; conduct that undermines the relationship between the Company and IRs or relationships between IRs; conduct which disrespects the privacy of other IRs; conduct which is false, fraudulent, dishonest or deceptive in any way; or any other conduct which the Company deems disreputable or, in any way, negatively impacts the Company or other IRs.

8. The company's program is built upon retail sales to the ultimate consumer. The company also recognizes that IRs may wish to purchase product or service in reasonable amounts for their own personal or family use. For this reason, a retail sale for bonus purposes shall include sales to non-participants, as well as sales to IRs for personal or family use which are not made for purposes of qualification or advancement. It is company policy, however, to strictly prohibit the purchase of product or large quantities of inventory in unreasonable amounts solely for the purpose of qualifying for bonuses or advancement in the marketing program. IRs may not inventory load nor encourage others in the program to load up on inventory. IRs must fulfill published personal and downline retail sales requirements, including requisite retail sales to nonparticipants, as well as supervisory responsibilities, to qualify for bonuses, overrides or advancements.

9. Any IR, who sponsors other IRs, must fulfill the obligation of performing a bona fide supervisory, distributing and selling function in the sale or delivery of product to the ultimate consumer and in the training of those sponsored. IRs must have ongoing contact, communication and management supervision with his or her sales organization. Examples of such supervision may include, but are not limited to: newsletters, written correspondence, personal meetings, telephone contact, voice mail, electronic mail, training sessions, and accompanying individuals to Company training, sharing genealogy information with those sponsored. IRs should be able to provide evidence to the Company semiannually of ongoing fulfillment of sponsor responsibilities. If an IR is an Enroller in the marketing program entitled to Enroller bonuses, then the Enroller is obligated to the same responsibilities of

supervisory, communication and training activities with respect to IRs he or she has enrolled, irrespective of whether the Enroller is also the Sponsor of those IRs.

10. Company Retail/70 Percent Policy. The Company sales and marketing program is based upon retail sales to the ultimate consumer. Every aspect of the program is designed to assist our IRs in the marketing of fine products and services to the general consuming public. As a dual consumer safeguard, of the utmost importance to the Company is the policy that IRs should purchase products and services in commercially reasonable quantities, and under no circumstances may IRs cause others to purchase products or services in amounts that are not reasonably expected to be sold to the consuming public or in unreasonable amounts for personal or family use. In furtherance of these policies, the Company has adopted specific rules on retail sales and retailing referenced as the Company retail/70 percent rules. In the interest of protecting the consumer and the opportunity of its IRs, the Company enforces this rule through a verification program.

Company Retail/70 Percent Rule.

a) Retail Rule.

Although the primary function of the Company is to sell products and services to the general consuming public, the Company realizes that its IRs may wish to purchase product for personal or family use in reasonable amounts. For this reason, the Company defines a retail sale to include sales to nonparticipants, as well as purchases for personal or family use in reasonable amounts, which are not made solely for purposes of qualification or advancement. This is a standard followed by leading direct selling companies. Notwithstanding this policy, the Company, in order to specifically further retail selling, has adopted a requirement that an IR will not be eligible for bonuses or overrides unless he or she has made six (6) requisite sales per month to nonparticipant retail customers.

In order to qualify for Team and Leadership Bonuses, you must be an "Active Consultant" – meaning that you have at least $100 in Personal Bonus Value (PBV) for the applicable month or be Pre-Qualified from the previous month. In addition you must maintain at least 6 non Consultant retail customers each month. For Dee Group recognizes that gathering personal Members to meet your Active qualification may take a reasonable amount of time. Therefore the Company provides a 6 month "ramp up" period to achieve your consistent Member book-of-business.

b) 70 Percent Rule.

As with other leading direct selling companies, the Company has adopted a 70 percent rule. Under this rule, Company IRs may not order additional product unless they have sold or used for personal or family use at least 70 percent of previously purchased inventory-type product. This verification form is also

intended to support the 70 percent rule policy.

Retail Sales/70 Percent Rule Audit Verification Program.

In its effort to support and enforce the retail sales/70 percent rule, the Company on a quarterly basis will conduct random audit verification follow-ups. The Company’s Compliance Department will contact IRs to further verify compliance with the retail sale/70 percent rule. IRs should maintain records and be prepared to assist the Company Compliance Department in its task.

11. Sales Volume Qualification by Order Taking. As with other leading direct selling companies, the Company has adopted minimum personal and group sales volume requirements. With respect to tangible products, which may be offered for purchase for resale, minimum sales volume requirements may also be fulfilled by taking orders from retail customers which will be fulfilled or drop-shipped by the Company directly to the retail customer.

12. All IRs are responsible for paying local, state and federal taxes due on earnings from commissions or any other earnings generated as a seller of Company products and services. The Company will collect sales tax on behalf of the IR, then report and distribute applicable sales taxes to the taxing entity for the state in which the sale is made. IRs may apply for a waiver of this practice by submitting a copy of their sales and use tax number (and a statement that they are wholesale purchasers purchasing for resale) acquired through their local taxing authorities.

13. Company IRs shall not advertise Company products and services and/or marketing plans except as specifically approved by the Company. Company IRs agree to make no false or fraudulent representations about the Company, the products, the Company compensation plan, or income potentials.

14. No purchase or investment is necessary to become a Company IR other than the purchase of, or payment fee for, a sales kit which is sold "at Company cost." (Purchase is optional in North Dakota). This "at cost" sales kit fee covers basic and ongoing sales and marketing materials and support in both written and electronic and online media formats, including product and service updates.

As an extension to the initial "at cost" sales kit, a modest monthly fee may be charged for expanded "at cost" ongoing sales and marketing materials support, including back office accounting review, training updates, replicated website and communication tools to support the sales and marketing process.

15. Trademark, Copyright, Trade Names, Advertising. a) The name of the Company and other names as may be adopted by the Company are proprietary trade names and trademarks of the Company. As such, these marks are of great value to the Company and are supplied to IR for IR's use only in an expressly authorized manner. IR agrees not to advertise the Company products or services in

any way other than the advertising or promotional materials made available to IR by the Company. IR agrees not to use any written, printed, recorded or any other material in advertising, promoting or describing the products or services or the Company marketing program, or in any other manner, any material which has not been copyrighted and supplied by the Company, unless such material has been submitted to the Company and approved in writing by the Company before being disseminated, published or displayed.

b) The IR, as an independent contractor, is fully responsible for all of his\her verbal and written statements made regarding the product or service and marketing program which are not expressly contained in writing in the current IR agreement, and advertising or promotional materials supplied directly by the Company. IR agrees to indemnify the Company and hold it harmless from any and all liability including judgments, civil penalties, refund, attorney fees, court costs or lost business incurred by the Company as a result of IR's unauthorized representations.

c) The Company will not permit the use of its copyrights, designs, logos, trade names, trademarks, etc. without its prior written permission.

d) All Company marketing materials or published intellectual property, whether printed, on video, film, produced by sound recording, or on the internet, are copyrighted and may not be reproduced in whole or in part by IRs or any other person except as authorized by the Company. Permission to reproduce any materials will be considered only in extreme circumstances. Therefore, an IR should not anticipate that approval will be granted.

e) A Company IR may not produce, use or distribute any information relative to the contents, characteristics or properties of Company product or service which has not been provided directly by the Company. This prohibition includes but is not limited to print, audio or video media.

f) A Company IR may not produce, sell or distribute literature, films or sound recordings which are deceptively similar in nature to those produced, published and provided by the Company for its IRs. Nor may an IR purchase, sell or distribute non-company materials which imply or suggest that said materials originate from the Company.

g) Any display ads or institutional or trademark advertising copy, other than covered in the foregoing rules, must be submitted to the Company and approved in writing by the Company prior to publication.

h) All advertising copy, direct mailing, radio, TV, newspaper and display copy must be approved in writing before being disseminated, published or displayed with the exception of blind ads where no reference is made to the Company name or product name.

i) No claims as to therapeutic or curative properties about the products may be made except those officially approved in writing by the Company or as contained in the official Company literature. In particular, no IR may make any claim that the Company products are useful in the treatment or cure of any disease. Such statements can be perceived as medical claims. Not only is this totally against Company policy, but it is also against the laws governed by the United States Food and Drug Administration.

16. Recording Policy. a) Attendance at Company Events; use authorized in Company media. Company events may be recorded by Company. Images, video and audio of people attending or participating in a Company related event may be used in Company published media in business support materials, and for promotions. By registering and attending a Company related event, you agree to allow Company to use your image, video, audio and personal information in these recordings.

b) Private Video and Recording of Events Prohibited. Audio, video and cellular recording of Company related events is strictly prohibited as they are governed by an all-rights-reserved copyright policy. In accordance with this policy, Company prohibits any and all personal recordings of any Company related event. This includes all Company related conferences, leadership or team meetings, training sessions, etc.

Audio, video, and cellular recordings of Company related events are not permitted; all audio and video recording devices are prohibited on the premises except by the expressed written permission of Company. Any attempt by unauthorized personnel to record these events may result in the confiscation of and forfeiture of the recording device. No recording devices will be allowed into Company related events, and all bags, briefcases, and backpacks are subject to be searched.

17. Internet and Website Policy.

The Company maintains an official corporate website. IRs are allowed to advertise on the internet through an approved Company program which allows IRs to choose from among Company home page designs that can be personalized with the IR's message and the IR's contact information. These websites link directly to the Company website giving the IR a professional and Company-approved presence on the internet. Only these approved websites may be used by IRs. No IR may independently design a website that uses the names, logos, product or service descriptions of the Company, nor may an IR use "blind" ads on the internet making product or income claims which are ultimately associated with Company products, services or the Company's compensation plan. Any person using Company names, logos, trademarks, etc. on the internet or any other advertising medium, except as permitted by Company Rules and Regulations, shall be subject to immediate discipline, including termination of IR status.

18. Prohibition of Sales on Unauthorized Internet Sites. Except with written authorization from the Company, an IR may not sell nor promote Company products on unauthorized internet sites, including, but not limited to auction sites such as eBay, nor internet shopping sites such as Amazon or Craig’s List, nor internet malls.

19. Unsolicited Email. The Company does not permit IRs to send unsolicited commercial email to others unless such emails strictly comply with applicable laws and regulations including, without limitation, the federal CAN SPAM Act.

Any email sent by an IR that promotes the Company, the Company opportunity or Company products and services must comply with the following:

a) There must be a functioning return email address to the sender.

b) There must be a notice in the email that advises the recipient that he or she may reply to the email, via the functioning return email address, to request that future email solicitations or correspondence not be sent to him or her (a functioning "opt-out" notice).

c) The email must clearly and conspicuously disclose that the message is an advertisement or solicitation.

d) The use of deceptive subject lines and/or false header information is prohibited.

e) All opt-out requests, whether received by email or regular mail, must be honored. If an IR receives an opt-out request from a recipient of an email, the IR must forward the opt-out request to the Company.

20. Unsolicited Faxes and Spam. Except as provided in this section, IRs may not use or transmit unsolicited faxes, mass email distribution, unsolicited email, or "spamming" or use an automatic telephone dialing system relative to the operation of their Company businesses. Unsolicited broadcast distribution of email or other distribution that may be defined as "bulk mail" or "SPAM" is strictly prohibited. IRs may send "general mailings" only to other IRs in their downline organizations and their direct up-line sponsors. Any other bulk use of email is prohibited.

The term "automatic telephone dialing system" means equipment, which has the capacity to:

a) Store or produce telephone numbers to be called, using a random or sequential number generator; and

b) To dial such numbers.

The terms "unsolicited faxes" and "unsolicited email" mean the transmission via telephone facsimile or electronic mail, respectively, of any material or information advertising or

promoting the Company, its products, its compensation plan or any other aspect of the Company which is transmitted to any person, except that these terms do not include a fax or email:

a) To any person with that person’s prior express invitation or permission; or

b) To any person with whom the IR has an established business or personal relationship. The term "established business or personal relationship" means a prior or existing relationship formed by a voluntary two-way communication between an IR and a person, on the basis of:

(1) An inquiry, application, purchase or transaction by the person regarding products offered by such IR; or

(2) A personal or familial relationship, which relationship has not been previously terminated by either party.

21. Retail Establishments. Company products or services may only be displayed and sold in retail establishments where the nature of the business is to make appointments with customers (such as salons, doctors' offices, and health clubs where appointments are made for personal training or classes are scheduled) the sale of such products or services within such retail facilities must be conducted by an IR and must be preceded by a discussion where the IR introduces the prospect to the products or services and opportunity just as they would if they had met outside of the retail facility. Company produced literature, banners, or signage only may be displayed on a shelf, counter, or wall and must be displayed by itself. Products or services may not be sold from a shelf or taken from a display for purchase by a customer. Company products or services may not be sold in any retail establishment, even by appointment, if competitive products or services are sold in the establishment. From time to time, the Company may announce policies and rules that expand or contract restrictions on sales in retail establishments.

22. Trade Shows. With written authorization from the Company, Company products or services and opportunity may be displayed at trade shows by IRs. Request for participation in trade shows must be received in writing by the Company at least two weeks prior to the show. Written authorization from the Company must be received before participating in the trade show. Unless written authorization is secured from the Company, Company products or services and opportunity are the only products or services and/or opportunity that may be offered in the trade show booth. Only Company produced marketing materials may be displayed or distributed. No IR may sell or promote the Company's products or services or business opportunity at flea markets, swap meets, or garage sales.

23. International Sales. No IR may export or sell directly or indirectly to others who export the Company's products, literature, sales aids or promotional material relating to the Company, its products or services or the Company's program from the United States or its possessions or territories to any other country. IRs who choose to sponsor internationally may do so only in countries in which the Company has registered to operate its business and must comply fully with the Rules of Operation of a Company IR position in that country. Any violation of this rule constitutes a material breach of this contract and is grounds for immediate termination of the IR.

24. The Company reserves the right to approve or disapprove IR's change of business names, formation of partnerships, corporations, and trusts for tax, estate planning, and limited liability purposes. If the Company approves such a change by IR, the organization's name and the names of the principals of the organization must appear on the IR application/agreement along with a social security number or federal identification number. It is prohibited to make changes to attempt to circumvent or violate Company rules on raiding, solicitation, targeting, cross-sponsoring or interference.

25. The IR agreement may be canceled at any time and for any reason by an IR notifying the Company in writing of the election to cancel.

26. If an IR elects not to renew his\her IR agreement, all rights to bonuses, marketing position and wholesale purchases cease. The terminated IR's sales organization shall be subject to placement in accordance with the then current published compensation plan presentation.

27. If the IR has purchased products for inventory purposes or mandatory sales aids while the IR agreement was in effect, all products in a resalable condition then in possession of the IR, which have been purchased within 12 months of cancellation, shall be repurchased. The repurchase shall be at a price of not less than ninety percent (90%) of the original net cost to the participant returning such goods, taking into account any sales made by or through such participant prior to notification to the Company of the election to cancel. Buyback is 12 months in Massachusetts, Maryland, Montana, Georgia, Louisiana, Wyoming, Texas, Oklahoma, Idaho, Utah, Washington and Puerto Rico. In addition, the Company will honor statutory mandated buyback requirements of every jurisdiction. A Montana resident may cancel his or her Agreement within 15 days from the date of enrollment, and may return his or her starter kit for a full refund within such time period.

28. The Company shall be entitled to repayment of any commission previously paid on a sale of product/service if the product/service purchase is cancelled or reversed or a refund paid for a terminated purchase. The Company shall recover the commission by adjustment on the next month's IR check payment. In the event that no commission is available for adjustment in the following month, the IR who has received the commission shall repay the commission paid on the "reversed sale" within 30 days of the Company’s notice to repay.

29. The Company shall be entitled to change product or service prices at any time and without notice, and to make changes in the statement of policy and procedures.

30. Each IR shall comply with all state and local taxes and regulations governing the sale of Company products or services.

31. Notwithstanding the Company's longer retail customer guarantee policy, all retail sales must comply with the FTC Three-Day Cooling Off Rule which requires statutory language and notice of cancellation on the retail sales receipt. The three-day right of cancellation must be orally explained to the customer and the customer must receive two copies of the notice of cancellation form.

32. Prohibition on Raiding and Cross-Solicitation of Products or Other MLM and/or Business Opportunities. The Company takes seriously its responsibility to protect the livelihood of its sales force and to the hard work invested to build a sales organization. Raiding and solicitation actions in which IRs seek to raid and solicit other IRs in the sales organization to non-company products and services and to other MLM/business opportunities, severely undermines the marketing program of the Company, interferes with the relationship between the Company and its sales force and destroys the livelihood of other IRs who have worked hard to build their own business, the business of their sales force and benefits they have earned by helping to build a sales organization. Therefore, IRs shall not directly or indirectly sell to, nor solicit from, other Company IRs non-company products or services, or in any way promote to other Company IRs business opportunities in marketing programs of other MLM or business opportunity companies at any time. A Company IR shall not engage in any recruiting or promotion activity that targets Company IRs for opportunities or products of other direct selling companies or business opportunities, either directly or indirectly, by themselves or in conjunction with others, nor shall an IR participate, directly or indirectly, in interference, raiding or solicitation activity of Company IR for other direct selling companies or business opportunities. Unless approved in writing by the Company, this prohibition includes sales or solicitation of non-company products or services at meetings organized for Company sales, promotion, training recruitment, demonstration, etc. This prohibition on targeting, interference, soliciting and raiding shall be in effect during the term of the IR agreement and for a period of one year after the termination of the IR agreement. For the term of this agreement and for one year after termination hereof, an IR shall not, directly or indirectly, recruit any of Company's IRs to join other direct sales or network marketing companies nor solicit, directly or indirectly, Company's IRs to purchase services or products, or in any other way interfere with the contractual relationships between Company and its IRs.

33. On a periodic basis, the Company will supply data processing information and reports to the IR, which will provide information concerning the IR’s downline sales organization, product purchases and product mix. The IR agrees that such information is proprietary and confidential to the Company and is transmitted to the IR in confidence. The IR agrees that he or she will not disclose such information to any third party directly or indirectly, nor use the information to compete with the Company directly or indirectly during or after the term of the agreement. The IR and the Company agree that, but for this agreement of confidentiality and nondisclosure, the Company would not provide the above confidential information to the IR. An IR seeking to sell his/her IR position must acknowledge and agree to this provision prior to the finalization of the sale of their IR position.

34. Vendor Confidentiality. The Company's business relationship with its vendors, manufacturers and suppliers is confidential. An IR shall not contact, directly or indirectly, or speak to or communicate with any representative of any supplier or manufacturer of the Company except at a Company sponsored event at which the representative is present at the request of the Company. Violation of this regulation may result in termination and possible claims for damages if the vendor/manufacturer's association is compromised by the IR contact.

35. An IR shall take appropriate steps to safeguard the protection of all private information provided by a consumer, a prospective consumer and/or other IRs.

36. Change in Status.

Marriage/Statutory Domestic Partnership: Two Company IRs who marry or enter into a statutory domestic partnership, after having established their own individual IR positions, may continue to operate their existing IR positions, as long as they do not originate from the same line. If they originate from the same line, then the couple has the choice of either selling or resigning from one of their IR positions, at their discretion.

Divorce/Dissolution: Should a couple become divorced or enter into a dissolution, they agree to notify the Company as to who will assume responsibility for the IR position in one of the following manners:

a) Written notarized agreement signed by both parties indicating who will retain the IR position.

b) A court order delineating who receives custody over the IR position.

c) Both parties may choose to retain their joint IR position and operate it as a partnership.

The divorced/dissolved IR may apply for a new IR position without having to wait 12 months.

Death: Upon the death of an IR, the rights and responsibilities of the IR position may be passed on to the rightfully legally documented heir as long as that person has filled out a new IR application/agreement and completed the required training.

Disability: Should an IR become disabled to the extent that he/she can no longer fulfill the required duties of the Company IR, such disabled IR’s legal representative or conservator shall:

a) Contact the Company within thirty (30) days of the disability and advise the Company of the IR’s status and the plans for future management or cancellation of  

the IR position.

b) Provide notarized or court confirmed copy of appointment as legal representative or conservator.

c) Provide notarized or court confirmed copy of document establishing right to administer the Company business.

d) Should the legal representative or conservator plan to continue the business of the IR position, then he/she shall fill out a new IR application/agreement and receive the required training consistent with the disabled IR’s level at the time of disability.

e) These requirements shall be satisfied within a deadline of six months.

37. Sale or Transfer. An IR may not sell, assign or otherwise transfer his or her IR position, marketing position or other IR rights without written application and approval by the Company. This paragraph is also applicable to transfer of any interest in an entity that owns an IR position, including but not limited to corporation, partnership, trust or other non-individual entity. The potential buyer must be at the equivalent or higher rank as the selling IR or have been a Company IR for at least a one-year period prior to the sale. The IR position must be offered in writing first to the IR's sponsor. If the sponsor declines the offer, the IR may offer the IR position for sale to other qualified Company IRs, but only on the same terms and conditions as offered to the sponsor. An IR who sells his or her IR position shall not be eligible to requalify as an IR for a period of at least six months after the sale. The Company reserves the right to review the sale agreement and to verify waiver from the upline sponsor in the event the upline sponsor declines to purchase the IR position.

An IR may not add a co-applicant to their IR position and thereafter, remove their name from the IR position, in an effort to circumvent the Company’s sale, assign, delegate or merger procedure. The primary IR must wait twelve (12) months after adding a co-applicant to the IR position before they are allowed to remove their name from the IR position. It is prohibited to use a sale or transfer to attempt to circumvent Company policy on raiding, soliciting, cross-sponsoring or interference.

For the term of three (3) years after sale or transfer, an IR agrees that he/she shall not, directly or indirectly, disrupt, damage, impair or interfere with the business of Company, whether by way of interfering with, or raiding its employees or IRs, disrupting its relationship with customers, agents, representatives, suppliers, vendors or manufacturers or otherwise. "Disrupting" or "interfering" shall include, but not be limited to, direct or indirect solicitation or recruitment for other direct selling business opportunities or products or services of other direct selling companies. An IR seeking to sell or transfer his/her IR position must acknowledge and agree to this provision prior to the finalization of the sale or transfer of their IR position.

38. This statement of policies and procedures is incorporated into the IR agreement and constitutes the entire agreement of the parties regarding their business relationship.

39. The Company expressly reserves the right to alter or amend prices, Rules and Regulations, Policies and Procedures, product availability and compensation plan. Upon notification, in writing, such amendments are automatically incorporated as part of the agreement between the Company and the IR. Company communication of changes may include, but shall not be limited to mail, email, fax, posting on the Company website, publication in company newsletters or magazines, etc.

40. Non-Individual Ownership. A partnership or corporation may be an IR. However, no individual may participate in more than one (1) IR position in any form without express written permission from the Company. Only in the most extreme and extraordinary circumstances will this be considered.

a) An IR position may change status under the same sponsor from individual to partnership or corporation or from partnership to corporation with proper and complete documentation.

b) To form a new IR position as a partnership or corporation or to change status to one of these forms of business, you must request a partnership/corporation form from the corporate home office. This form must be submitted detailing all partners, stockholders, officers or directors in the partnership or corporation. The partner or officer who submits the form must be authorized to enter into binding contracts on behalf of the partnership or corporation. In addition, by submitting the partnership/corporation form, you certify that no person with an interest in the business has had an interest in an IR position within three (3) months of the submission of the form (unless it is the continuation of an existing IR position that is changing its form of doing business).

41. Individual and Entity Ownership Information. a) An individual can have only one IR position in the Company. He/she may not own any other IR position, either individually or jointly, nor may he/she participate as a partner, owner, stockholder, trustee, director, or association member in more than one IR position in any form.

b) An individual shall provide the Company with a Social Security Number or a Taxpayer Identification Number (TIN) on an IDS W-9 form. No individual operating under a fictitious name and no partnership, corporation or other business entity may become a Company IR without submitting an "Entity Information" form following enrollment of proprietorship, corporation, Limited Liability Corporation (LLC), trust or partnership.

(1) Proprietorship: A copy of fictitious name filing must be submitted, plus a W-9 form.

(2) Corporation: Copies of articles of incorporation are required, including the page with state seals and notarization. These articles will show who the principals are and prove validation of Federal IR Number/Business

Number/E.I.N, plus a W-9 form.

(3) LLC: IDS acceptance only. The name on the IDS acceptance is required to state the LLC in order to use it as an LLC, plus a W-9 form.

(4) Trust: An affidavit of trust with the notarized copy of the power of attorney is necessary. If Federal IR Number is to be used and is not noted in the affidavit, an IDS acceptance will be required, plus a W-9 form.

(5) Partnership: To register as a partner, complete the partnership portion of the Entity Information form, along with all signatures that apply, plus a W-9 form.

42. Entity Guarantee for Owners: Although Company has offered IRs the opportunity to conduct their IR position as corporate, LLC, trust or partnership entities, it is agreed that since the IR position entity is under the control of its owners or principals, the actions of individual owners or beneficiaries as they may affect Company and the IR position are also critical to Company’s business. Therefore, it is agreed that actions of the ownership entity shareholders, officers, directors, trustees, beneficiaries, agents, employees or other related or interested parties and the actions of such parties, which are in contravention to Company’s policies shall be attributable to the corporate, LLC, trust or partnership entity.

In the event that any of the ownership entity shareholders, officers, directors, trustees, beneficiaries, agents, employees or other related parties shall terminate ownership interests in the IR position, any breaching actions by such parties that continue to have a beneficial financial interest, directly or indirectly, in the IR position shall be attributable to the IR position.

43. Members of Same Household; Responsibility. Members of IR’s household may operate together as one Company IR position, but may not become separate Company IRs. Household is defined as husband, wife, and dependents. Note: Children of legal age to contract and at least 18 years of age are not considered a part of their parents’ household.

Company recognizes that members of the same household may belong to competing direct selling opportunities. Although the actions of the parties are normally in good faith, in some circumstances, there is an abuse of relationships in which the non-company household member is engaged in recruitment, solicitation or raiding of the Company sales organization. Since the household member that has an ownership interest in the Company IR position is in the best position to be responsible to prevent raiding or cross-sponsoring activity by their co-household member, the cross-recruiting activity of the non-company household member shall be attributed to the Company IR position, subjecting the IR position to discipline or termination.

44. It is agreed that Company is authorized to use IR’s name, photograph, personal story and/or likeness in advertising or promotional materials and IR waives all claims for remuneration for such use.

45. Disciplinary Actions. An IR's violation of any policies and procedures, the agreement, terms and conditions or any illegal, fraudulent, deceptive, or unethical business conduct may result, at the Company's discretion, in one or more of the following disciplinary actions:

a) Issuance of a written warning or admonition.

b) Imposition of a fine, which may be imposed immediately or withheld from future commission checks.

c) Reassignment of all or part of an IR's organization.

d) Suspension, which may result in termination or reinstatement with conditions or restrictions.

e) Termination of the IR.

46. The Company reserves the right to terminate any IR at any time for cause when it is determined that the IR has violated the provisions of the IR agreement, including the provisions of these policies and procedures as they may be amended or the provisions of applicable laws and standards of fair dealing. Such involuntary termination shall be made by the Company at its discretion. Upon an involuntary termination, the Company shall notify the IR by mail at the latest address listed with the Company for the IR. In the event of a termination, the terminated IR agrees to immediately cease representing him/herself as an IR.

47. Termination.

a) When a decision is made to terminate an IR, the Company will inform the IR in writing that the IR is terminated immediately, effective as of the date of the written notification. The termination notice will be sent by certified mail to the IR's address on file with the Company.

b) The IR will have 15 days from the date of mailing of the certified letter in which to appeal the termination in writing, and provide written response to the finding of violations of Company agreement, policies and/or rules. The IR's appeal and/or response correspondence must be received by the Company within 20 days of the Company's termination letter. If the appeal is not received within the 20-day period, the termination will be automatically deemed final.

c) If an IR files a timely appeal of termination, the Company will review and reconsider the termination, consider any other appropriate action, and notify the IR of its decision. The decision of the Company will be final and subject to no further review. In the event the termination is not rescinded, the termination will be effective as of the date of the Company's original termination notice.

48. All IRs have the right to sponsor others. In addition, every person has the ultimate right to choose his/her own sponsor. If two IRs should claim to be the sponsors of the same new IR, the Company shall regard the first application received by the corporate home office as controlling.

a) As a general rule, it is good practice to regard the first IR to meaningfully work with a prospective IR as having first claim to sponsorship, but this is not necessarily controlling. Basic tenets of common sense and consideration should govern.

b) As a convenience to its IRs, the Company may provide various methods of registering or informing the Company of newly sponsored IRs, including online internet registration, telephone registration and facsimile registration. Until such time as the Company receives an application, either as hard copy or by facsimile, containing all appropriate information, as well as the signature of the proposed new IR, the Company will only consider the internet, telephone or facsimile registration in the category of "intended" recognition of sponsor. Thus, although the Company is attempting to create some convenience for its sponsoring IRs, it is the responsibility of the sponsoring IR to cause delivery to the Company of a completed and signed IR agreement if the sponsor is to expect formal recognition as the official sponsoring IR.

c) There is no "magic" involved in the Company or in any business. Those who sponsor widely but who do not help new IRs develop their business meet with limited success. Therefore, a responsibility of sponsorship is to work with new IRs, helping them learn the business and encouraging them during the critical early months.

d) Sponsors are not required to carry inventory of products or sales aids for new IRs. When tangible product is involved, IRs who do so, however, find building a major sales organization much easier because of the decreased response time in meeting a new IR's needs.

e) When soliciting a prospective IR to join the Company’s network program, the IR must clearly explain the following:

(1) Products: type, performance and quality of each product.

(2) Compensation plan.

(3) Policies and Procedures.

(4) IRs rights and duties.

(5) Other important items that will affect the judgment of the prospective IR.

49. Transfer of Sponsorship. Transfer is rarely permitted and is actively discouraged. Maintaining the integrity of sponsorship is absolutely mandatory for the success of the overall organization. a) Transfers will generally be approved in three (3) circumstances only: (1) In the case of unethical sponsoring by the original sponsor. In such cases, the Company will be the final authority.

(2) With the written approval of the immediate five (5) upline sponsors.

(3) Resigning from the Company entirely and waiting six (6) months to reapply under the new sponsor.

b) In cases of unethical sponsoring, the individual may be transferred with any downlines intact; in all other events, the individual alone is transferred without any downline IRs being removed from the original line of sponsorship.

50. To be eligible for monthly override commissions and bonuses, the IR must comply with:

a) Supervisory responsibility requirements as outlined herein.

b) 70% rule on resale of wholesale product ordered, and

c) Retail sales rule requiring sales to at least six (6) non-participant retail customers per month.

d) The requirement that his/her downline has retailed product which has been purchased at wholesale.

51. The Company encourages each IR to keep accurate sales records. The program is based upon retail sales to the ultimate consumers; therefore, all forms of stockpiling or pyramiding are prohibited. Products and services are offered to IRs only for personal consumption and for resale to consumers.

52. See specific addenda to IR agreement for specific states as to statutory purchasing limitations, buyback rules and other restrictions, disclosures and additional IR rights and responsibilities. In any state with a business opportunity statute, required expenditures during the first six months shall not exceed the statutory amount that initiates applicability of the state business opportunity statute.

53. Income Claims. No income claims, income projections nor income representations may be made to prospective IRs. Obviously, any false, deceptive or misleading claims regarding the opportunity or product\service are prohibited. In their enthusiasm, IRs are occasionally tempted to represent hypothetical income figures based upon the inherent power of network marketing as actual income projections. This is counter-productive, since new IRs may be quickly disappointed if their results are not as extensive or as rapid as a hypothetical model would suggest. The Company believes firmly that the income potential is great enough to be highly attractive in reality without resorting to artificial and unrealistic projections.

54. Representation of Status. In all cases, any reference the IR makes to him/herself must clearly set forth the IR's independent status. For example, if the IR has a business telephone, the telephone may not be listed under the Company's name or in any other manner which does not disclose the independent contractor status of the IR.

55. Tax Reporting Applicable to Non-U.S. Citizen/Residents. If the IR is a non-U.S. citizen/resident, then he/she hereby confirms that he/she is not a citizen or resident of the United States, and is obliged to inform the Company of this status. The IR agrees that, if the IR engages in any activities related to the Company while physically present in the United States, the IR will (1) inform the Company about such activities, (2) submit a completed IDS Form 8233* to the Company if requested by the Company, completed as directed by the Company, for the year in which such activities occur and for each year thereafter, and (3) inform the Company of the aggregate dollar amount of the sales of the IR or the IR’s down line that, as reasonably determined by the IR, are attributable to activities that the IR performed while physically present in the United States (including an explanation of how the IR calculated the amount). The IR understands that, if the IR engages in any such

activities in any year, the Company may be required to (1) withhold a portion of each payment to the IR in that year and each subsequent year and (2) report a portion of each payment to the IR to the IDS on IDS Form 1042 and report the same to the IR on IDS Form 1042-S.

*IDS Form 8233 is applicable for distributors in certain countries that are parties to a U.S. tax treaty.

56. Enforcement of Judgment, Garnishments, Support Orders, Federal Tax Liens, etc. against Company Independent Representatives. The Company will honor enforceable court orders, garnishments, support orders, etc. that have been properly registered in the jurisdiction where the Company is headquartered or registered to do business as an out of state corporation. The Company will also honor any enforceable Federal Tax Lien.

57. Subpoenas Duces Tecum (Demands for Records). Assuming proper jurisdiction, the Company will comply with all subpoenas duces tecum demanding financial compensation records of an IR in his/her capacity as an independent contractor with the Company.

58. Requests for Records. The Company will comply fully with all requests for records accompanied by a properly prepared and signed authorization by the person whose records are being sought. The Company will comply fully with all requests for records by government agencies with the authority to request such records and accompanied by the requisite legal documentation.

59. Newspaper and Online Advertisements. Some IRs use classified advertising in the newspapers or online, such as Craig’s List, to find prospects. The following rules apply:

• No advertisement may imply that a "job" or "position" is available.

• No specific income can be promised.

• Advertisements must contain no misleading facts or distortions of the Company opportunity or product line.

60. Business Cards and Stationery. Any printed materials, including business cards and stationery, must be approved by the Company in advance. Criteria for approving these materials will include a judgment regarding the quality of the materials as well as properly setting forth the independent status of the IR.

61. Telemarketing Techniques. The Federal Trade Commission and the Federal Communications Commission each have laws that restrict telemarketing practices. Both federal agencies (as well as a number of states) have "do not call" regulations as part of their telemarketing laws. Although the Company does not consider IRs to be "telemarketers" in the traditional sense of the word, these government regulations broadly define the term "telemarketer" and "telemarketing" so that your inadvertent action of calling someone whose telephone number is listed on the federal "do not call" registry could cause you to violate the

law. Moreover, these regulations must not be taken lightly, as they carry significant penalties.

Therefore, IRs must not engage in telemarketing in the operation of their Company businesses. The term "telemarketing" means the placing of one or more telephone calls to an individual or entity to induce the purchase of a Company product or service, or to recruit them for the Company opportunity. "Cold calls" made to prospective customers or IRs that promote either Company products or services or the Company opportunity constitute telemarketing and are prohibited. However, a telephone call(s) placed to a prospective customer or IR (a "prospect") is permissible under the following situations:

a) You may call family members, personal friends, and acquaintances. An "acquaintance" is someone with whom you have at least a recent first-hand relationship within the preceding three (3) months. Bear in mind, however, that if you make a habit of "card collecting" with everyone you meet and subsequently calling them, the FTC may consider this a form of telemarketing that is not subject to this exemption. Thus, if you engage in calling "acquaintances," you must make such calls on an occasional basis only and not make this a routine practice.

b) The prospect’s personal inquiry or application regarding a product or service offered by the IR, within the three (3) months immediately preceding the date of such a meeting.

c) If the IR has an established business relationship with the prospect. An "established business relationship" is a relationship between an IR and a prospect based on the prospect’s purchase, rental or lease of goods or services from the IR, or a financial transaction between the prospect and the IR within the eighteen (18) months immediately preceding the date of a telephone call to induce the prospect’s purchase of a product or service.

d) If the IR receives written and signed permission from the prospect authorizing the IR to call. The authorization must specify the telephone number(s) which the IR is authorized to call.

e) In addition, IRs shall not use automatic telephone dialing systems relative to the operation of their Company businesses. The term "automatic telephone dialing system" means equipment which has the capacity to (a) store or produce telephone numbers to be called, using a random or sequential number generator, and (b) to dial such numbers.

62. Press Inquiries. Any inquiries by the media are to be referred immediately to the Company. This policy is to assure accuracy and consistent public image.

63. Social Networking. If done correctly and in compliance with Company policies, social networking may be useful in driving traffic to the official Company website and to Company authorized personal replicated websites of IRs. The following rules and guidelines, regarding social networking, are applicable:

a) The Company encourages IRs to join online forums, discussion groups, blogs, and other forms of Internet communication for the purpose of communicating the benefits of Company products and opportunity. Internet social networking is similar to telephoning, emailing, and other technology-assisted communication: it is not a violation so long as it complies with the general policies and procedures governing claims and contacting. Social networks include such sites as Facebook, LinkedIn, Twitter and so on. Additionally, there are social networks of like-minded persons. You may find social networks by doing a Google search using varying topics.

b) You must comply with the rules associated with websites and networks. For instance, some sites prohibit the marketing of financial opportunity or the selling of products. On such sites, you may instead choose to share your testimonial of benefits from the technology of the Company; or you may want to talk about how your life is improving. When others in the network hear your testimonial, they will naturally inquire … and that is the opportunity to send them to your authorized Company website.

c) Upon notifying the Company Compliance Department via email for review, you may publish YouTube, Twitter and other communications. You must supply for content review a link to the material you have posted. In the event your material is found to be non-complying, you will be required to remove it within 24 hours.

d) If you are on Facebook or other social networking sites, join our "Fans" or comparable pages. Here are some guidelines for you to follow as you use Facebook, or other social networking sites, to grow your business online.

1. Positive Steps to Help Your Business:

• Post as much as you like to your wall.

• Comment as much as you like on your photos and links.

• Post as many links on your page.

2. Activities to Avoid:

• Do not send more than the allowed friend invites per day or your account may be deactivated.

• Do not post anything to someone’s wall about the Company if they have asked you to stop.

• Do not send emails with links to anyone you do not know unless they have asked for the link.

• Do not post more than the allowed times per day to anyone else’s walls, as deactivation may occur.

An IR must treat Facebook or any other online forum just like real life but in the virtual space. Your property is your page while other people’s pages are their property; and this "ownership" must be respected as if it were the real property of your neighbor. This simple approach will keep you out of trouble with social networking sites and help us maintain the integrity of the Company.

64.Internet Search Engine Optimization.

a)IRsmay use, reference, or incorporate the Company names and trademarks inapproved Internet advertising.

b)When participating in chat rooms and other social media, CompanyIRsmay useapproved Company language (as represented in the brochures, promotional and training materials of the Company and on the Company website) for the purpose ofdiscussing the Company products and opportunity.

c)IRsmay use the language of approved Company literature for Internet advertising.Company trademarks, trade names, or product names, or any variations thereof, maynot be used in search engines.

d)IRsmay communicate the benefits of Company products on the Internet and on search engines in appropriate categories.

e)IRsmay not use language that is sexually explicit, threatening, pornographic, violentor otherwise prohibited.

f)In no way should any independent website or link give the impression of being theofficial website of the Company, rather than that of a CompanyIR. All Internetadvertising must clearly report that the ad is placed by an"IR" of the Company.

g)IRsmay use words from approved Company advertising as "key words" for thepurpose of having communications found by search engines.

h)With the exception of theIR’sauthorized hosted Company website, the use of theCompany name within a URL address/domain name, directory, file name, e-mail address,official title for a social media account,or any derivative thereof, is notpermitted(by way of example, but not limited to the varying derivatives of the nameof theCompany that use the Company name in the URL or domain name.CompanyIRsmay not use any domain name or email address that includes anyreference, whether abbreviated or not, to the Company name,products or services,except in connection with the CompanyIR’sauthorized replicated Companywebsite.

i)CompanyIRsmay not publish, post, or distribute any material on their websites orin conversation or postings on the Internet, including blogs and social networking inconnection with the Company that is defamatory, libelous, disparaging, threatening,offensive, harassing, abusive, obscene, pornographic, in violation of applicable law orthat inhibits others from enjoying the Company’s main website or the CompanyIRs’websites.

j)Determination of whether a link is objectionable is solely at the discretion of theCompany.

k)IRsmay not use tactics such as "cloaking" or other deceptive means on theIRs’ webpages(For example: Cloaking in Google terms means designing a website so that search enginessee one thing and visitors see another.)

l)As a practical matter, CompanyIRsshould make sure that any advertising through digital media, such as the Internet and email, is fully compliant with Companypolicies and procedures, Internet Compliance Department and existing laws and regulations.

m)CompanyIRsmay not sell or advertise products over the Internet through

independently designed shopping carts or websites that use the names, logos,product or income testimonials, compensation plan or product description(s) of theCompany.IRsmay send "general mailings" only toIRsin their downlineorganizations and their direct upline enrolls. Any other bulk use of email isprohibited by the Company and will result in immediate discipline which may resultin termination ofIRrights and benefits and the loss ofIRrights, including salesorganizations and compensation. Various kinds of prohibited emails–either bulk orindividual –include, but are not limited to the following:

(1)Totally Unsolicited or Blind Mass Email.Many"lists"that can bepurchased for distribution over the Internet have been illicitly compiled and result in completely unsolicited information being sent to uninterested parties. Since the expense is so low to distribute to these lists, they are even more prevalent than bulk-mailings through traditional channels. Any use ofa list not specifically approved by the Company or compiled from alegitimate genealogical listing of the emailer’s downline organization issubject to immediate discipline.

(2)Hidden Approval Mass Email.Sites that garner approval by having hidden,discreet or non-prominent "buttons" that are selected by default rather than choice are illegal. For instance, if it is necessary to de-select approval to keepfrom being added to a list (rather than requesting to be added), the resultinglist is illegal. Many supposedly "approved lists" have in fact been gatheredillicitly through this means.

(3)Third Party Approval for Mass Email.Companies that gather approval frominquiries, then sell the lists to third parties where the person giving approvalis not informed that a third party will contact them, compile illegal lists. These companies frequently distribute to many third parties who "bury" theuser with many emails.

(4)Legal and Ethical Email Communication.Email is by its nature personaland mutual: An appropriate Company email is a communication in which both parties are interested. Rather than requiring denial to terminate ("If you want your name removed from this list …"), it requires consent to initiate.Any email communication which violates this premise is potentially illegal and subjects the author to disciplinary review.

(5)Specifically Illegal Practices: False Reply-To Address.Any attempt todisguise the identity of the emailer will be taken as evidence for the intent offraud and subject the sender to immediate discipline.

(6)Linking.No links may be made froman IRwebsite, except as provided orauthorized by the Company. Authorized links include:

•Links madetoa CompanyIRwebsite for the purpose of Companycommunication, so long as such communication does not violate the

terms and conditions of this agreement and such agreements as a Company IR has with the Company.

• Links from blogs and social networking sites joined for the purpose of networking, marketing, sponsoring, and selling the Company products. The trademarks, names, and identities of the Company are for the exclusive use and licensing of the Company. The purpose of the Company licensing of IR sites is to supervise and control the content by which Company products and opportunity are marketed. Any effort to circumvent this authorization and supervision will be regarded as a violation of the rules and regulations and subject to immediate discipline, and social network and/or participating in the conversations of blogs must conform to these standards.

n) Lawful use of the Internet. The Company supports all laws and regulations regarding use of the Internet, the Worldwide Web, and all other communication technologies. Any person associated with the Company program found in violation of said rules and regulations, including, but not limited to spamming (unsolicited bulk contact using the Internet), etc., is subject to immediate discipline.

o) Internet Banner Advertising, etc. Banner advertising is bound by the same policies and procedures affecting other forms of advertising and must conform to general policies and procedures.

65. Federal and state regulatory agencies rarely approve or endorse direct selling programs. Therefore, IRs may not represent that the Company's program has been approved or endorsed by any governmental agency.

66. Indemnification and Hold Harmless. The IR hereby indemnifies and releases Company, its officers, directors, agents and assigns and holds harmless from and against the full amount of any and all claims, causes of action, judicial and administrative proceedings suits, charges, liabilities, losses, damages, costs and expenses, including without limitation court costs and reasonable fees and expenses of attorneys and consultants, which are or may be made, filed or assessed against Company at any time arising out of IR's business operations and representations made by IR in the operation of his/her business, arising from the following:

a) Violation and/or lack of compliance with terms of the IR agreement, policies and procedures, rules and regulations, marketing program manual or guidelines or any other directive from the Company as to method and manner of operation of the IR business;

b) Engaging in any conduct not authorized by the Company in the Company market program;

c) Any fraud, negligence or willful misconduct in the operation of the IR business;

d) Misrepresentation or unauthorized representation regarding the Company's product or service, marketing opportunity or potential or the Company's marketing program;

e) Failure to adhere to any federal, state or local law, regulation, ordinance and/or any order or rule issue by any court of appropriate jurisdiction;

f) Engaging in any action which exceeds the scope of authority to the IR as granted by the Company;

g) Engaging in any activity over which Company has no effective control as to the actions of the IR.

h) Engaging in the general business operations of IR’s business.

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

68. Governing Law. These rules are reasonably related to the laws of the state of Texas and shall be governed in all respects thereby. The parties agree that jurisdiction and venue shall lie with the place of acceptance of the IR application, the state of Texas.

69. Partial Validity. Should any portion of these Rules and Regulations, of the IR's application and agreement, or of any other instruments referred to herein or issued by the Company be declared invalid by a court of competent jurisdiction, the balance of such rules, applications, or instruments shall remain in full force and effect.


Home Office:

4DG
1700 Post Oak Blvd
Houston TX 77056
United States

Email: info@4dg.life
Phone: 713-513-7129