LIFE Policy and Procedures Reviewed By MLM Advocate Troy Dooly

8/3/2019 LIFE Policy and Procedures Reviewed By MLM Advocate Troy Dooly

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STATEMENT OF POLICIESand

PROCEDURES

Effective: November 1, 2011

Comment [TD1]: The Following is an

review of the Policies & Procedures of LI

Leadership & Personal Development Com

Troy Dooly has a 30 year history in the d

selling industry, specifically in the netwo

marketing community as a distributor, co

executive and company owner.

Today, he is a leading advo cate and amb

for the network marketing community, f

providing fair and balanced editorials an

statistical documentation for those vetti

network marketing community.

Comment [TD2]: Now as with all lega

Agreements you should have your attorn

these policies if you have any questions

you are signing.

Comment [TD3]: Grimes & Reese are

attorneys hired by LIFE to hel p them craf

following Policies & Procedures.

Although Grimes & Reese reviewed thes

have found some very unique sections w

balance to these Policies over other clien

Grimes & Reese which I have reviewed.


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TABLE OF CONTENTS

SECTION 1- INTRODUCTION ................................................................................................................................1

1.1- POLICIES AND COMPENSATION PLAN INCORPORATED INTO MEMBER AGREEMENT..................................11.2- CHANGES TO THE AGREEMENT .................................................................................................................11.3- POLICIES AND PROVISIONSSEVERABLE ....................................................................................................11.4- WAIVER ....................................................................................................................................................1

SECTION 2- BECOMING A MEMBER ..................................................................................................................2

2.1- REQUIREMENTS TO BECOME A MEMBER...................................................................................................22.2- BUSINESS STARTER KITS AND PRODUCT PURCHASES ...............................................................................22.3- MEMBERBENEFITS ...................................................................................................................................22.4- TERM AND RENEWAL OF YOUR LIFEBUSINESS .......................................................................................3

SECTION 3- OPERATING A LIFE BUSINESS .....................................................................................................3

3.1- MEMBER CREATED MARKETING METHODS AND TOOLS...........................................................................33.2- ADVERTISING............................................................................................................................................3

3.2.1- General .........................................................................................................................................33.2.2- Trademarks and Copyrights .........................................................................................................4

3.2.2.1- Injunctive and Equitable Relief ....................................................................................43.2.3- Media and Media Inquiries ..........................................................................................................43.2.4- Unsolicited Email.........................................................................................................................53.2.5- Unsolicited Faxes .........................................................................................................................53.2.6- Telephone Directory Listings.......................................................................................................6

3.3- ONLINE CONDUCT.....................................................................................................................................63.3.1- Member Web Sites .......................................................................................................................63.3.2- Group Websites ............................................................................................................................63.3.3- Domain Names, Email Addresses and Online Aliases.................................................................63.3.4- Online Classifieds ........................................................................................................................63.3.5- eBay / Online Auctions ................................................................................................................63.3.6- Online Retailing ...........................................................................................................................73.3.7- Banner Advertising ......................................................................................................................73.3.8- Spam Linking . ..............................................................................................................................73.3.9- Digital Media Submission (YouTube, iTunes, PhotoBucket etc.) ...............................................7

3.3.10- Sponsored Links / Pay-Per-Click (PPC) Ads .............................................................................73.3.11- Social Media ..............................................................................................................................7

3.3.11.1- Members Are Responsible for Postings......................................................................83.3.11.2- Identification as an Independent LIFE Member .........................................................83.3.11.3- Social Media as a Sales and Promotion Forum...........................................................83.3.11.4- Deceptive Postings .....................................................................................................83.3.11.5- Use of Third Party Intellectual Property .....................................................................83.3.11.6- Respecting Privacy .....................................................................................................93.3.11.7- Professionalism...........................................................................................................93.3.11.8- Prohibited Postings .....................................................................................................93.3.11.9- Responding to Negative Posts ....................................................................................93.3.11.10- Social Media Sites with Website-like Features.........................................................93.3.11.11- Cancellation of Your LIFE Business ........................................................................9

3.4- CHANGE OF ENROLLER ...........................................................................................................................103.4.1- Misplacement .............................................................................................................................103.4.2- Cancellation and Re-Application . ..............................................................................................10

3.5- WAIVER OFCLAIMS ................................................................................................................................103.6- UNAUTHORIZED CLAIMS AND ACTIONS..................................................................................................113.6.1- Indemnification ..........................................................................................................................113.6.2- Income Claims ...........................................................................................................................11

3.7- REPACKAGING AND RE-LABELINGPROHIBITED ......................................................................................11


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3.8- COMMERCIALOUTLETS ..........................................................................................................................11

3.9- TRADE

SHOWS

, EXPOSITIONS AND

OTHER

SALES

FORUMS

.....................................................................113.10- NON-SOLICITATION AND PARTICIPATION IN OTHER OPPORTUNITIES ...................................................123.10.1- Non-Solicitation .......................................................................................................................123.10.2- Member Participation in Other Network Marketing Programs ................................................123.10.3- Injunctive and Equitable Relief ................................................................................................13

3.11- TARGETINGOTHER DIRECT SELLERS....................................................................................................133.12- ERRORS OR QUESTIONS.........................................................................................................................133.13- GOVERNMENTAL APPROVAL OR ENDORSEMENT ..................................................................................133.14- HOLDING APPLICATIONS OR ORDERS....................................................................................................143.15- INCOME TAXES .....................................................................................................................................143.16- INDEPENDENT CONTRACTOR STATUS ...................................................................................................143.17- INSURANCE ...........................................................................................................................................143.18- INTERNATIONALMARKETING ...............................................................................................................143.19- EXCESS INVENTORY AND BONUS BUYING ............................................................................................143.20- ADHERENCE TO LAWS ANDORDINANCES .............................................................................................153.21- ONE LIFE BUSINESS PER MEMBER AND PER HOUSEHOLD ...................................................................153.22- ACTIONS OF HOUSEHOLD MEMBERS OR AFFILIATED PARTIES..............................................................15

3.23- REQUESTS FORRECORDS ......................................................................................................................163.24- ROLL-UP OF DOWNLINE ORGANIZATION...............................................................................................163.25- SALE, TRANSFER OR ASSIGNMENT OF LIFE BUSINESS .........................................................................163.26- SEPARATION OF A LIFE BUSINESS ........................................................................................................173.27- ENROLLMENT........................................................................................................................................183.28- SUCCESSION..........................................................................................................................................18

3.28.1- Transfer Upon Death of a Member ..........................................................................................183.28.2- Transfer Upon Incapacitation of a Member .............................................................................18

3.29- TELEMARKETINGTECHNIQUES .............................................................................................................193.30- BACK OFFICE ACCESS...........................................................................................................................20

SECTION 4- RESPONSIBILITIES OF MEMBERS.............................................................................................20

4.1- CHANGE OF ADDRESS, TELEPHONE, AND E-MAILADDRESSES ...............................................................204.2- CONTINUING DEVELOPMENT OBLIGATIONS............................................................................................20

4.2.1- Ongoing Training .......................................................................................................................204.2.2- Increased Training Responsibilities ...........................................................................................204.2.3- Ongoing Sales Responsibilities ..................................................................................................21

4.3- NONDISPARAGEMENT .............................................................................................................................214.4- PROVIDINGDOCUMENTATION TO APPLICANTS.......................................................................................21

SECTION 5- SALES REQUIREMENTS................................................................................................................21

5.1- PRODUCT SALES .....................................................................................................................................215.2- NO TERRITORYRESTRICTIONS................................................................................................................215.3- SALES RECEIPTS .....................................................................................................................................21

SECTION 6- BONUSES AND COMMISSIONS....................................................................................................22

6.1- BONUS AND COMMISSIONQUALIFICATIONS ...........................................................................................226.2- ADJUSTMENT TO BONUSES AND COMMISSIONS ......................................................................................22

6.2.1- Adjustments for Returned Products and Services ......................................................................226.2.2- Hard Copy Commission Checks ................................................................................................22

6.3- REPORTS .................................................................................................................................................22

SECTION 7- PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASE..........................23

7.1- RETURNS BY RETAIL CUSTOMERS OR MEMBERS ....................................................................................237.2- RETURN OF INVENTORY AND SALES AIDS BY MEMBERS UPON CANCELLATION ....................................24

7.2.1- Montana Residents .....................................................................................................................247.3- PROCEDURES FOR ALL RETURNS ............................................................................................................24


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SECTION 8- DISPUTE RESOLUTION BETWEEN MEMBERS.......................................................................25

8.1- GRIEVANCES, COMPLAINTS AND DISPUTES BETWEEN MEMBERS...........................................................258.2- INFORMAL RESOLUTION .........................................................................................................................25

8.2.1- Enroller/Upline Leader Resolution ............................................................................................258.2.2- Member Services Department Resolution..................................................................................25

8.3- NON-BINDING MEDIATION .....................................................................................................................268.3.1- Request for Non-Binding Mediation ..........................................................................................268.3.2- Selection of Mediator .................................................................................................................268.3.3- Consolidation .............................................................................................................................268.3.4- Mediation Proceedings...............................................................................................................26

8.4- BINDING ARBITRATION...........................................................................................................................268.4.1- Agreement to Arbitrate ..............................................................................................................268.4.2- Time for Demand and Companys Right to Intervene ...............................................................278.4.3- Appointment and Authority of Arbitrator ..................................................................................288.4.4- Arbitration Proceeding ...............................................................................................................288.4.5- Confidentiality ...........................................................................................................................298.4.6- Class Action Arbitration Prohibited ...........................................................................................298.4.7- Consolidation of Claims.............................................................................................................29

8.5- GOVERNING LAW, JURISDICTION AND VENUE ........................................................................................29

SECTION 9- DISPUTE RESOLUTION BETWEEN MEMBER AND COMPANY .........................................30

9.1- DISPUTES BETWEEN MEMBERS AND THE COMPANY...............................................................................309.2- DISCIPLINARYSANCTIONS......................................................................................................................309.3- NON-BINDING MEDIATION .....................................................................................................................31

9.3.1- Companys Request for Non-Binding Mediation.......................................................................319.3.2- Members Request for Non-Binding Mediation.........................................................................319.3.3- Injunctive or Equitable Relief ....................................................................................................319.3.4- Selection of Mediator .................................................................................................................319.3.5- Consolidation .............................................................................................................................319.3.6- Mediation Proceeding ................................................................................................................32

9.4- ELECTION OF FORUM FOR FURTHER DISPUTE RESOLUTION....................................................................329.5- LIMITATIONSPERIOD ..............................................................................................................................329.6- BINDING ARBITRATION...........................................................................................................................33

9.6.1- Agreement to Arbitrate ..............................................................................................................33

9.6.2- Appointment and Authority of Arbitrator ..................................................................................349.6.3- Arbitration Proceedings .............................................................................................................349.6.4- Confidentiality ...........................................................................................................................359.6.5- Class Action Arbitration Prohibited ...........................................................................................359.6.6- Consolidation of Claims.............................................................................................................35

9.7- GOVERNING LAW, JURISDICTION AND VENUE ........................................................................................369.7.1- Louisiana Residents ...................................................................................................................36

SECTION 10- SALES TAXES .................................................................................................................................36

10.1- SALESTAXES ........................................................................................................................................36

SECTION 11- INACTIVITY, RECLASSIFICATION, AND CANCELLATION ..............................................36

11.1- EFFECT OFCANCELLATION...................................................................................................................3611.2- INVOLUNTARYCANCELLATION ............................................................................................................3711.3- VOLUNTARY CANCELLATION ...............................................................................................................3711.4- NON-RENEWAL .....................................................................................................................................37

SECTION 12- DEFINITIONS..................................................................................................................................37


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SECTION 1- INTRODUCTION

1.1- Policies and Compensation Plan Incorporated into Member Agreement

These Policies and Procedures, in their present form and as amended at the sole discretion ofLiving Intentionally for Excellence, LLLP (hereafter LIFE or the Company), areincorporated into, and form an integral part of, the LIFE Member Agreement. Throughout thesePolicies, when the term Agreement is used, it collectively refers to the Independent MemberApplication and Agreement, these Policies and Procedures and the LIFE Compensation Plan.These documents are incorporated by reference into the LIFE Member Agreement (all in theircurrent form and as amended by LIFE).

1.2- Changes to the Agreement

LIFE reserves the right to make additions to and amend the Agreement and to change its

prices in its sole and absolute discretion. By executing the Agreement, a Member agrees to abideby all amendments or modifications that LIFE elects to make. Amendments and modificationsshall be effective thirty (30) days after publication of notice that the Agreement has beenamended or modified. Amendments and modifications shall not apply retroactively to conductthat occurred prior to the effective date of the amendment or modification. Notification ofamendments and modifications shall be published by one or more of the following methods: (1)posting on the Companys official web site; (2) electronic mail (e-mail); (3) posting in MembersBack Offices; (4) inclusion in Company periodicals; (5) inclusion in product orders or bonuschecks; or (6) special mailings. The continuation of a Members LIFE business or a Membersacceptance of bonuses or commissions constitutes acceptance of all amendments ormodifications.

1.3- Policies and Provisions Severable

If any provision of the Agreement, in its current form or as may be amended, is found to beinvalid or unenforceable for any reason, only the invalid portion(s) of the provision shall besevered and the remaining terms and provisions shall remain in full force and effect. Thesevered provision, or portion thereof, shall be reformed to reflect the purpose of the provision asclosely as possible.

1.4- Waiver

The Company never waives the right to insist on compliance with the Agreement and withthe applicable laws governing the conduct of a business. No failure of LIFE to exercise any rightor power under the Agreement or to insist upon strict compliance by a Member with anyobligation or provision of the Agreement, and no custom or practice of the parties at variancewith the terms of the Agreement, shall constitute a waiver of LIFEs right to demand exactcompliance with the Agreement.

Comment [TD4]: This section provid

for the LIFE members, that is not usual s

network marketing P&Ps.

In most cases the section (Changes to th

Agreement) is focused ONLY on the side

company, and changes become effective

immediately upon the change.

I believe the LIFE f ounders, being distrib

themselves, fully understand and empat

LIFEs independent distributors and hav

balanced policy.

Also notice the policy is very specific, thchanges take effect in the future a nd do

apply retroactively.


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SECTION 2- BECOMING A MEMBER

2.1- Requirements to Become a Member

To become a LIFE Member, each applicant must:

Be at least 18 years of age;

Reside in the United States, or U.S. Territories;

Provide LIFE with his/her valid Social Security number;

Purchase a LIFE Business Starter Kit (optional in North Dakota,Massachusetts, Wyoming and Louisiana for residents of those states);

Submit a properly completed Independent Member Application andAgreement to LIFE either in hard copy or online format.

2.2- Business Starter Kits and Product Purchases

With the exception of a Business Starter Kit, no person is required to purchase LIFEproducts, services or sales aids to become a Member. In order to familiarize new Members withLIFE products, services, sales techniques, sales aids, and other matters, the Company requiresthat they purchase a Business Starter Kit (optional in North Dakota, Massachusetts, Wyomingand Louisiana for residents of those states). LIFE will repurchase resalable kits from anyMember who terminates his or her Member Agreement pursuant to the terms of Section 7.2.

2.3- Member Benefits

Once an Independent Member Application and Agreement has been accepted by LIFE, thebenefits of the Compensation Plan and the Agreement are available to the new Member. Thesebenefits include the right to:

Sell LIFE products and services;

Participate in the LIFE Compensation Plan (receive bonuses and commissions, ifeligible);

Enroll other individuals as Customers or Members into the LIFE business andthereby, build a Downline Organization and progress through the LIFECompensation Plan;

Receive periodic LIFE literature and other LIFE communications;

Participate in LIFE-sponsored support, service, training, motivational andrecognition functions, upon payment of appropriate charges, if applicable; and


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Participate in promotional and incentive contests and programs sponsored by

LIFE for its Members.

2.4- Term and Renewal of Your LIFE Business

The term of the Agreement is one year from the date of its acceptance by LIFE. Membersmust renew their Agreement each year by paying an annual renewal fee. There are three optionsfor doing so:

Members may elect to utilize the Automatic Renewal Program (ARP). Underthe ARP, the renewal fee will be charged to the Members credit card on file withthe Company at a renewal rate of $15.

Members may choose to manually renew via the LIFE website when prompted atthe end of their Agreement term at a renewal rate of $19. This price will be

available for 60 days after the anniversary date of their Agreement.

A $39 last chance renewal is available for Members from 61 to 90 days aftertheir anniversary date. This is also accomplished via the LIFE website.

Any Member who fails to renew his or her Agreement within the guidelines outlined abovewill automatically have his or her Membership terminated without the ability to be reinstated.

SECTION 3- OPERATING A LIFE BUSINESS

3.1- Member Created Marketing Methods and Tools

Members must adhere to the terms of the Agreement as set forth in the Independent LIFEMember Application and Agreement, LIFE Policies and Procedures, and Compensation Plan.

Members shall not offer the LIFE opportunity through, or in combination with, any other system,program, sales tools, or method of marketing other than that specifically set forth in official LIFEliterature. Members shall not require or encourage other current or prospective Customers orMembers to execute any agreement or contract other than the Independent Member Applicationand Agreement in order to become a LIFE Member. Similarly, Members shall not require orencourage other current or prospective Customers or Members to make any purchase from, orpayment to, any individual or other entity to participate in the Agreement other than thosepurchases or payments identified as recommended or required in official LIFE literature.

3.2- Advertising

3.2.1- General

All Members shall safeguard and promote the good reputation of LIFE and its products.

The marketing and promotion of LIFE, the LIFE opportunity, the Compensation Plan, and LIFEproducts must avoid all discourteous, deceptive, misleading, unethical or immoral conduct orpractices.

Comment [TD5]: This is unique and

provides balance for the rank and file m

LIFE.

In most compensation structures if an in

member does not renew on their annive

their personals as well as their network

immediately or in the best cases 30-day

road.

This additional 90-days renewal protect

average member, who may be doing LIF

time.

Comment [TD6]: Primerica was one

companies to protect their i ndependent

with this type of policy, and it has work

them over the last 35 years.

This protects not just the field force but

company also when it comes to complia


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To promote both the products and services, and the opportunity LIFE offers, Members

must use the sales tools and support materials produced by LIFE or LIFE approved suppliers.The Company has carefully designed its products, product labels, Compensation Plan, andpromotional materials to ensure that they are promoted in a fair, truthful manner, that they aresubstantiated, and the material complies with the legal requirements of federal and state laws.Accordingly, Members must not produce their own literature, advertisements, sales tools andpromotional materials, or Internet web pages.

3.2.2- Trademarks and Copyrights

The name of LIFE and other names as may be adopted by LIFE are proprietary tradenames, trademarks and service marks of LIFE. As such, these trade names, trademarks andservice marks are of great value to LIFE and are supplied to Members for their use only in themanner expressly authorized in the Agreement. LIFE will not allow the use of its trade names,trademarks, designs, or symbols, or any derivatives of such marks, by any person, including

LIFE Members, in any unauthorized manner without its prior, written permission.

The content of all Company sponsored events is copyrighted material. Members may notproduce for sale or distribution any recorded Company events and speeches without writtenpermission from LIFE, nor may Members reproduce for sale or for personal use any recording ofCompany-produced audio or video tape presentations.

As a LIFE Member, you may use the LIFE name in the followingmanner:

Members NameLIFE Member

Example:

Alice SmithLIFE Member

Members may not use the name LIFE in any form in your group name, a tagline, anexternal website name, your personal website address or extension, in an e-mail address, as apersonal name, or as a nickname. Additionally, only use the phrase LIFE Member in your phonegreeting or on your answering machine to clearly separate your independent LIFE business fromLIFE. For example, you may not secure the domain name www.buyLIFE.com, nor may youcreate an email address such [email protected].

3.2.2.1- Injunctive and Equitable Relief

Members acknowledge that the violation of Section 3.2.2 relating to the use of LIFEtrademarks, trade names, service marks and copyrights will cause significant and irreparable

harm to the Company, warranting an award of immediate injunctive relief and/or other equitableremedies.

3.2.3- Media and Media Inquiries

Comment [TD7]: This is typical in AL

Agreements, even those where a limited

granted to a franchisee or independent
http://www.buylife.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]://www.buylife.com/


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Members must not respond to media inquiries regarding LIFE, its products or services, or

their independent LIFE business. All inquiries by any type of media must be immediatelyreferred to LIFEs Member Services Department at [email protected]. Thispolicy is designed to assure that accurate and consistent information is provided to the public aswell as a proper public image.

3.2.4- Unsolicited Email

LIFE does not permit Members to send unsolicited commercial emails unless such emailsstrictly comply with applicable laws and regulations including, without limitation, the federalCAN SPAM Act. Any email sent by a Member that promotes LIFE, the LIFE opportunity, orLIFE products and services must comply with the following:

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

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

The email must include the Members physical mailing address.

The email must clearly and conspicuously disclose that the message is anadvertisement or solicitation.

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

All opt-out requests, whether received by email or regular mail, must be honored.If a Member receives an opt-out request from a recipient of an email, the Member

must forward the opt-out request to the Company.

LIFE may periodically send commercial emails on behalf of Members. By entering intothe Agreement, Member agrees that the Company may send such emails and that the Membersphysical and email addresses will be included in such emails as outlined above. Members shallhonor opt-out requests generated as a result of such emails sent by the Company.

3.2.5- Unsolicited Faxes

Except as provided in this section, Members may not use or transmit unsolicited faxes inconnection with their LIFE business. The term unsolicited faxes means the transmission viatelephone facsimile or computer of any material or information advertising or promoting LIFE,its products, its Compensation Plan or any other aspect of the company which is transmitted toany person, except that these terms do not include a fax: (a) to any person with that person's priorexpress invitation or permission; or (b) to any person with whom the Member has an establishedbusiness or personal relationship. The term established business or personal relationshipmeans a prior or existing relationship formed by a voluntary two way communication between aMember and a person, on the basis of: (a) an inquiry, application, purchase or transaction by the

Comment [TD8]: Another standard pfound in ALL standard agreements wher

independent reps or franchisees are inv

As a matter of fact, we also see it in mos

employment agreements these days.
mailto:[email protected]:[email protected]


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person regarding products offered by such Member; or (b) a personal or familial relationship,

which relationship has not been previously terminated by either party.

3.2.6- Telephone Directory Listings

Members may not list themselves as a LIFE Member in the white or yellow pages ofthe telephone directory, or with online directories, under their own name. No Member may placetelephone or online directory display ads using LIFE's name or logo. Members may not answerthe telephone by saying LIFE, LIFE Incorporated, or in any other manner that would leadthe caller to believe that he or she has reached corporate offices of LIFE.

3.3- Online Conduct

3.3.1- Member Web Sites

Members are provided with access to replicated websites for an additional charge throughLIFEs training supplier agreement with Team, from which they can take orders and enroll newcustomers. Members may use only replicated websites provided by Team to promote their LIFEbusiness, and may not create their own websites to directly or indirectly promote LIFEsproducts, services, or the LIFE opportunity. LIFE may only be discussed on Social Media sitesto the extent permitted in Section 3.3.12

3.3.2- Group Websites

You may use a Group Website for the purposes of connecting, communicating, training,education and sharing best practices among group members. Because these sites may containsensitive and Company-specific information, these Group Websites must be password protectedand may only be shared with members of your downline. You must also supply LIFE withcredentials to access.

3.3.3- Domain Names, Email Addresses and Online Aliases

Members are not allowed to use or attempt to register LIFE or any of LIFEs tradenames, trademarks, service names, service marks, product names, the Companys name, or anyderivatives of the foregoing, for any Internet domain name, email address, online aliases, orsocial media name or address. Additionally, Members cannot use or register domain names,email addresses, and/or online aliases that could cause confusion, or be misleading or deceptive,in that they cause individuals to believe or assume the communication is from, or is the propertyof, LIFE.

3.3.4- Online Classifieds

You may not use online classifieds (including Craigslist) to list, sell or retail specificLIFE products or product bundles or for prospecting, recruiting, sponsoring and informing the

public about the LIFE opportunity.

3.3.5- eBay / Online Auctions

Comment [TD9]: This is another uniq

for LIFE. By allowing access to LIFE, t he

independent LIFE mem ber protects themfrom being attacked falsely by rumors o

recruiting or issuing disparaging comme

LIFE, to their group in private.

Now the member, can say LIFE has acce

can look for themselves.


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LIFEs products and services may not be listed on eBay or other online auctions, nor may

Members enlist or knowingly allow a third party to sell LIFE products on eBay or other onlineauctions.

3.3.6- Online Retailing

Members may not list or sell LIFE products on any online retail store or ecommerce site,nor may you enlist or knowingly allow a third party to sell LIFE products on any online retailstore or ecommerce site.

3.3.7- Banner Advertising

You may not place banner advertisements on any website.

3.3.8- Spam Linking

Spam linking is defined as multiple consecutive submissions of the same or similarcontent into blogs, wikis, guest books, websites or other publicly accessible online discussionboards or forums and is not allowed. This includes blog spamming, blog comment spammingand/or spamdexing. Any comments you make on blogs, forums, guest books etc. must be unique,informative and relevant.

3.3.9- Digital Media Submission (YouTube, iTunes, PhotoBucket etc.)

Members may upload, submit or publish LIFE-related video, audio or photo content thatthey develop and create so long as it aligns with LIFE values, contributes to the LIFE communitygreater good and is in compliance with LIFEs Policies and Procedures. All submissions mustclearly identify you as a LIFE Member in the content itself and in the content description tag,must comply with all copyright/legal requirements, and must state that you are solely responsiblefor this content. Members may not upload, submit or publish any content (video, audio,presentations or any computer files) received from LIFE or captured at official LIFE events or inbuildings owned or operated by LIFE without prior written permission.

3.3.10- Sponsored Links / Pay-Per-Click (PPC) Ads

Sponsored links or pay-per-click ads (PPC) are not acceptable.

3.3.11- Social Media

Social Media may be used by Members to share information about their involvement inthe LIFE opportunity and for prospecting. However, Members who elect to use Social Mediamust adhere to the Policies and Procedures in all respects.

Social Media sites may not be used to enroll new Members or customers, or to take

orders, sell or offer to sell specific LIFE products or services. Profiles a Member generates in anysocial community where LIFE is discussed or mentioned must clearly identify the Member as anindependent LIFE Member, and when a Member participates in those communities, the belowrules apply and Members must avoid inappropriate conversations, comments, images, video,

Comment [TD10]: These three polic

standard with all direct selling companie

use a network marketing compensation

MLM compensation structure.

It protects the brand, and doesnt dilute

of the products or services.

Comment [TD11]: This is a great pro

both LIFE and the independent member

very well balanced policy.

Many companies do not have such a pol

leads to compliance issues at both a f ed

state level.

In many cases the policy in some compa

restrictive, and in others way to l enient


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audio, applications or any other adult, profane, discriminatory or vulgar content. The

determination of what is inappropriate is at LIFEs sole discretion, and offending Members willbe subject to disciplinary action. If a link is provided, it must link to the posting MembersReplicated Website.

Members may not use blog spam, spamdexing or any other mass-replicated methods toleave blog comments. Comments Members create or leave must be useful, unique, relevant andspecific to the blogs article.

3.3.11.1- Members Are Responsible for Postings

Members are personally responsible for their postings and all other online activity thatrelates to LIFE. Therefore, even if a Member does not own or operate a blog or Social Mediasite, if a Member posts to any such site that relates to LIFE or which can be traced to LIFE, theMember is responsible for the posting. Members are also responsible for postings which occur

on any blog or Social Media site that the Member owns, operates, or controls.

3.3.11.2- Identification as an Independent LIFE Member

You must disclose your full name on all Social Media postings, and conspicuouslyidentify yourself as an independent Member for LIFE. Anonymous postings or use of an alias isprohibited.

3.3.11.3- Social Media as a Sales and Promotion Forum

Social Media sites are relationship-building sites. While building relationships is animportant part of the sales process, Social Media sites may not be used as a direct medium forgenerating sales or explaining the LIFE opportunity. Online sales may only be generated from aMembers LIFE replicated website or through the LIFE website. Likewise, Members shall notuse any Social Media site to explain the LIFE Compensation Plan or any component of theCompensation Plan.

3.3.11.4- Deceptive Postings

Postings that are false, misleading, or deceptive are prohibited. This includes, but is notlimited to, false or deceptive postings relating to the LIFE opportunity, LIFEs products andservices, and/or your biographical information and credentials.

3.3.11.5- Use of Third Party Intellectual Property

If you use the trademarks, trade names, service marks, copyrights, or intellectual propertyof any third party in any posting, it is your responsibility to ensure that you have received theproper license to use such intellectual property and pay the appropriate license fee. All third-party intellectual property must be properly referenced as the property of the third-party, and you

must adhere to any restrictions and conditions that the owner of the intellectual property placeson the use of its property.

Comment [TD12]: Social media aka

still in its infancy and will continue to ev

time.

Since both civil and criminal judges have

social media profiles into evidence, it is

on the companies side to protect both t

and longevity of the business opportuni

Comment [TD13]: If an independentmember is a strong internet marketer, it

recommended hiring someone full-time

their social media profiles and blogs, or

availability for people to post automatic

Comment [TD14]: Excellent policy fo

company and the independent LIFE mem

With the current federal opinions remov

Amendment protection of Free Speech f

commercial posts by anonymous poster

raise the legitimacy of everything writte

critics and fans of LIFE.

In the case of anonymous posting, the g

public cant know the full intent or agen

poster, it is wise to weight out informat

anonymous bloggers and posters (pro o

against information and sources one can

Comment [TD15]: This policy goes r

with the above policy on personal respo

If any member of life is engaging in an u

and unprofessional anonymous posting

are not just hurting LIFE and the LIFE me

they are also hurting the direct sales/ne

marketing community.

We are all af ter the same end game or p

development, financial freedom, and fu

life mission, whatever that may be. SO w

we want to engage i n unethical and dec

business practices period?


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9

3.3.11.6- Respecting Privacy

Always respect the privacy of others in your postings. Members must not engage ingossip or advance rumors about any individual, company, or competitive products or services.Members may not list the names of other individuals or entities on their postings unless theyhave the written permission of the individual or entity that is the subject of their posting.

3.3.11.7- Professionalism

You must ensure that your postings are truthful and accurate. This requires that you fact-check all material you post online. You should also carefully check your postings for spelling,punctuation, and grammatical errors. Use of offensive language is prohibited.

3.3.11.8- Prohibited Postings

Members may not make any postings, or link to any postings or other material that:

Is sexually explicit, obscene, or pornographic;

Is offensive, profane, hateful, threatening, harmful, defamatory, libelous,harassing, or discriminatory (whether based on race, ethnicity, creed,religion, gender, sexual orientation, physical disability, or otherwise);

Is graphically violent, including any violent video game images;

Is solicitous of any unlawful behavior;

Engages in personal attacks on any individual, group, or entity;

Is in violation of any intellectual property rights of the Company or any

third party.

3.3.11.9- Responding to Negative Posts

Do not converse with one who places a negative post against you, other independentMembers, or LIFE. Report negative posts to the Company at [email protected]. Responding to such negative posts often simply fuels a discussion with someonecarrying a grudge that does not hold themselves to the same high standards as LIFE, andtherefore damages the reputation and goodwill of LIFE.

3.3.11.10- Social Media Sites with Website-like Features

Because some social media sites are particularly robust, the distinction between a socialmedia site and a website may not be clear cut. LIFE therefore reserves the sole and exclusive

right to classify certain social media sites as websites and require that Members using, or whowish to use, such sites adhere to the Companys policies relating to independent websites.

3.3.11.11- Cancellation of Your LIFE Business

Comment [TD16]: This is another pois unique to LIFE. Very few companies fo

worry about the privacy of others where

independent fi eld force is concerned.

I think this is in direct reflection of t he L

founders, and knowing what they have

personally. I think this shows empathy t

independent members.

Comment [TD17]: This policy really

very important issues. First is complianc

protects the whole LIFE family by puttin

writing the standard expected.

Second, opens the door to community t

If a LIFE member finds an error on a site

openly contact that person and suggest

change.

Comment [TD18]: Although this is s

most Policies and Procedures I have rev

direct sales companies. I think the LIFE p

a little deeper.

If you are vetting LIFE or any of the LIFE/

founders you will come across sites, wh

quickly it is easy to see there i s a biased

against LIFE/TEAM and all the leaders pa

present.

In some cases there are some critical qu

asked, in most cases it is just negative p

comments by people who have never be

TEAM/LIFE.

Or by people who for whatever reason

make it through the struggles of the law

Amway; were not about to sell the Mon

products/grow a team, or just were not

for TEAM/LIFE or network marketing as

And in a couple of cases, t here are somerun by current Amway leaders, who fue

people against LIFE/TEAM and t he foun

because they left Amway. Although this

acceptable in the free enterprise system

make it right.

As a matter of fact, it reminds me of pol

do not like their backbiting half trues eit


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10

If your LIFE business is cancelled for any reason, you must discontinue using the LIFE

name, and all of LIFEs trademarks, trade names, service marks, and other intellectual property,and all derivatives of such marks and intellectual property, in any postings and all Social Mediasites that you utilize. If you post on any Social Media site on which you have previouslyidentified yourself as an independent LIFE Member, you must conspicuously disclose that youare no longer an independent LIFE Member.

3.4- Change of Enroller

LIFE prohibits organizational changes. Accordingly, the transfer of a LIFE business fromone Enroller to another is not permitted outside of the examples below. Requests for a changemust be submitted in writing to the Member Services Department, and must include the reasonfor the transfer. Transfers will only be considered in the following two circumstances:

3.4.1- Misplacement

In cases in which the new Member is enrolled by someone other than the individual he orshe was led to believe would be his or her Enroller, a Member may request that he or she betransferred to another organization with his or her entire Downline Organization intact. Requestsfor transfer under this policy will be evaluated on a case-by-case basis and must be made withinseven days from the date of enrollment. The Member requesting the change has the burden ofproving that he or she was placed incorrectly. It is up to LIFEs discretion whether the requestedchange will be implemented.

3.4.2- Cancellation and Re-Application

A Member may legitimately change organizations by voluntarily canceling his or herLIFE business and remaining inactive (i.e., no purchases of LIFE products for resale, no sales ofLIFE products, no enrolling, no attendance at any LIFE functions, participation in any other form

of Member activity, or operation of any other LIFE business, no income from the LIFE business)for six (6) full calendar months. Following the six-month period of inactivity, the formerMember may reapply under a new Enroller, however, the former Members DownlineOrganization will not be moved.

3.5- Waiver of Claims

In cases wherein the appropriate organizational change procedures have not been followed,and a Downline Organization has been developed in the second business developed by aMember, LIFE reserves the sole and exclusive right to determine the final disposition of theDownline Organization. Resolving conflicts over the proper placement of a DownlineOrganization that has developed under an organization that has improperly switchedorganizations is often extremely difficult. Therefore, MEMBERS WAIVE ANY AND ALLCLAIMS AGAINST LIFE, ITS OFFICERS, DIRECTORS, OWNERS, EMPLOYEES,

AND AGENTS THAT RELATE TO OR ARISE FROM LIFES DECISION

REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION THAT

DEVELOPS BELOW AN ORGANIZATION AS TO WHICH APPROPRIATE

ORGANIZATIONAL CHANGE PROCEDURES HAVE NOT BEEN FOLLOWED.Comment [TD19]: Very powerful wo

is not seen in all P&Ps. This shows the co

taking a solid sta nd on stacking, cross-re

and unethical building techniques. If an

independent LIFE mem ber violates this p

cant say they were not warned.


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11

3.6- Unauthorized Claims and Actions

3.6.1- Indemnification

A Member is fully responsible for all of his or her verbal and written statements maderegarding LIFE products, services, and the Compensation Plan that are not expressly containedin official LIFE materials. This includes statements and representations made through allsources of communication media, whether person-to-person, in meetings, online, through SocialMedia, in print, or any other means of communication. Members agree to indemnify LIFE andLIFEs directors, owners, officers, employees, and agents, and hold them harmless from allliability including judgments, civil penalties, refunds, attorney fees, court costs, or lost businessincurred by LIFE as a result of the Members unauthorized representations or actions. Thisprovision shall survive the termination of the Members Agreement.

3.6.2- Income Claims

Because LIFE Members do not have the data necessary to comply with the legalrequirements for making income claims, a Member, when presenting or discussing the LIFEopportunity or Compensation Plan to a prospective Member, may not make income projections,income claims, or disclose his or her LIFE income (including, but not limited to, the showing ofchecks, copies of checks, bank statements, or tax records).

3.7- Repackaging and Re-labeling Prohibited

LIFE products may only be sold in their original packaging. Members may not repackage,re-label, or alter the labels on LIFE products. Tampering with labels/packaging could be aviolation of federal and state laws, and may result in civil or criminal liability. Members mayaffix a personalized sticker with your personal/contact information to each product or productcontainer, as long as you do so without removing existing labels or covering any text, graphics,

or other material on the product label.

3.8- Commercial Outlets

Members may not sell LIFE products from a commercial outlet, nor may Members displayor sell LIFE products or literature in any retail or service establishment. Online auction and/orsales facilitation websites, including but not limited to ebay and Craigslist, constituteCommercial Outlets, and may not be used to sell LIFE products.

3.9- Trade Shows, Expositions and Other Sales Forums

Members may display and/or sell LIFE products at trade shows and professionalexpositions. Before submitting a deposit to the event promoter, Members must contact theMember Services Department in writing at [email protected] for conditionalapproval, as LIFEs policy is to authorize only one LIFE business per event. Final approval will

be granted to the first Member who submits an official advertisement of the event, a copy of thecontract signed by both the Member and the event official, and a receipt indicating that a depositfor the booth has been paid. Approval is given only for the event specified. Any requests toparticipate in future events must again be submitted to the Member Services Department. LIFE

Comment [TD20]: This is another gr

protection for the whole i ndependent m

at LIFE. By placing inside the policies the

of excellence, there will be no mistaking

expected.

Comment [TD21]: Another policy w

companies should have to protect the b

the independent field force.

I should also make it very clear, Income

illegal period, unless the company provi

current and valid IDS (Income Disclosure

Statement.)

Now, again if you are vetting LIFE, you m

across sites where critics want to slam L

policy, using sound bites out of context

the LIFE owners.

Sadly, this critics are ignorant to t he law

surrounding direct selling, specifically ne

marketing and would rather post comm

fake names, or anonymously than to ed

themselves in the law.

You can read more about Income Claims

Grimes & Reese Attorneys-at-Law
mailto:[email protected]://www.mlmlaw.com/library/guides/IncomeClaims.pdfhttp://www.mlmlaw.com/library/guides/IncomeClaims.pdfhttp://www.mlmlaw.com/library/guides/IncomeClaims.pdfmailto:[email protected]


16/43

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further reserves the right to refuse authorization to participate at any function which it does not

deem a suitable forum for the promotion of its products, services, or the LIFE opportunity.Approval will not be given for swap meets, garage sales, flea markets or farmers markets asthese events are not conducive to the professional image LIFE wishes to portray.

3.10- Non-Solicitation and Participation in Other Opportunities

3.10.1- Non-Solicitation

LIFE Members are free to participate in other multilevel or network marketing businessventures or marketing opportunities (collectively network marketing). However, during theterm of this Agreement, Members may not Recruit other LIFE Members, advisors, managers,employees, customers or vendors of LIFE, (a) to enter into any business relationship with anyother direct sales or network marketing company or individual unless the other networkingmarketing business has been specifically approved by LIFE in its sole discretion (MonaVie has

been approved) or (b) to terminate or alter his or her business relationship with LIFE.

Following the cancellation of a Members Agreement, and for a period of six calendarmonths thereafter, with the exception of a Member who is personally enrolled by the formerMember, a former Member may not Recruit any LIFE Member, advisor, manager, employee,customer or vendor of LIFE, (a) to enter into any business relationship with any other direct salesor network marketing company or individual or (b) to terminate or alter his or her businessrelationship with LIFE.

Members and the Company recognize that because network marketing is conductedthrough networks of independent contractors dispersed across the entire United States andinternationally, and business is commonly conducted via the internet and telephone, an effort tonarrowly limit the geographic scope of this non-solicitation provision would render it whollyineffective. Therefore, Members and LIFE agree that this non-solicitation provision shall apply

nationwide and to all international markets in which Members are located.

3.10.2- Member Participation in Other Network Marketing Programs

If a Member is engaged in other non-LIFE direct selling programs, it is the responsibilityof the Member to ensure that his or her LIFE business is operated entirely separate and apartfrom any other program. To this end, the following must be adhered to:

Members must not sell, or attempt to sell, any competing non-LIFEprograms, products or services to LIFE Customers or Members. Anyprogram, product or services in the same generic categories as LIFEproducts or services is deemed to be competing, regardless of differencesin cost, quality or other distinguishing factors.

Members shall not display LIFE promotional material, sales aids, productsor services with or in the same location as any non-LIFE promotionalmaterial or sales aids, products or services, unless specifically authorizedby LIFE.


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Members shall not offer the LIFE opportunity, products or services to

prospective or existing Customers or Members in conjunction with anynon-LIFE program, opportunity, product or service, unless specificallyauthorized by LIFE.

Members may not offer any non-LIFE opportunity, products or services atany LIFE-related meeting, seminar, convention, webinar, teleconference,or other function, unless specifically authorized by LIFE.

3.10.3- Injunctive and Equitable Relief

Member acknowledges that the violation of Sections 3.10.1 and 3.10.2 will causesignificant and irreparable harm to the Company, warranting an award of immediate injunctiverelief and/or other equitable remedies.

3.11- Targeting Other Direct Sellers

LIFE does not condone Members specifically or consciously targeting the sales force ofanother direct sales company to sell LIFE products or to become Members for LIFE, nor doesLIFE condone Members solicitation or enticement of members of the sales force of anotherdirect sales company to violate the terms of their contract with such other company. ShouldMembers engage in such activity, they bear the risk of being sued by the other direct salescompany. If any lawsuit, arbitration or mediation is brought against a Member alleging that heor she engaged in inappropriate recruiting activity of its sales force or customers, LIFE will notpay any of the Members defense costs or legal fees, nor will LIFE indemnify the Member forany judgment, award, or settlement.

3.12- Errors or Questions

If a Member has questions about or believes any errors have been made regardingcommissions, bonuses, genealogy lists, or charges, or any other errors, omissions or problems,the Member must notify LIFE in writing via email to [email protected] days of the date of the purported error, omission or problem in question. LIFE will notrespond to, or attempt to correct, any such errors, omissions or problems not reported to theCompany within 60 days.

3.13- Governmental Approval or Endorsement

Neither federal nor state regulatory agencies or officials approve or endorse any directselling or network marketing companies or programs. Therefore, Members shall not represent orimply that LIFE or its Compensation Plan have been approved, endorsed or otherwisesanctioned by any government agency.
mailto:[email protected]:[email protected]


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3.14- Holding Applications or Orders

Members must not manipulate enrollments of new applicants and purchases of products.All Independent Member Applications and Agreements, and product orders must be sent to LIFEwithin 7 days from the time they are signed by a Member or placed by a customer, respectively.

3.15- Income Taxes

Each Member is responsible for paying local, state, and federal taxes on any incomegenerated as a Member. If a Members LIFE business is tax exempt, the Federal taxidentification number must be provided to LIFE. Every year, LIFE will provide an IRS Form1099 MISC (Non-employee Compensation) earnings statement to each U.S. resident who: 1)Had earnings of over $600 in the previous calendar year; or 2) Made purchases during theprevious calendar year in excess of $5,000.

3.16- Independent Contractor Status

Members are independent contractors. The agreement between LIFE and its Members doesnot create an employer/employee relationship, agency, partnership, or joint venture between theCompany and the Member. A Member shall not be treated as an employee for Federal or Statetax purposes. All Members are responsible for paying local, state, and federal taxes due from allcompensation earned as a Member. The Member has no authority (expressed or implied) to bindthe Company to any obligation. Each Member shall establish his or her own goals, hours, andmethods of sale, so long as he or she complies with the terms of the Agreement (which includesthese Policies and Procedures) and applicable laws.

3.17- Insurance

You may wish to arrange insurance coverage for your business. Your homeownersinsurance policy does not cover business-related injuries, or the theft of or damage to inventoryor business equipment. Contact your insurance agent to make certain that your business propertyis protected. This can often be accomplished with a simple Business Pursuit endorsementattached to your present home owners policy.

3.18- International Marketing

Members are authorized to sell LIFE products and services, and enroll Customers orMembers only in the countries in which LIFE is authorized to conduct business, as announced inofficial Company literature. In addition, no Member may, in any unauthorized country: (a)conduct sales, enrollment or training meetings; (b) enroll or attempt to enroll potential customersor Members; or (c) conduct any other activity for the purpose of selling LIFE products,establishing a Downline Organization, or promoting the LIFE opportunity.

3.19- Excess Inventory and Bonus Buying

Members must never purchase more products than they can reasonably use or sell to retailcustomers in a month, and must not influence or attempt to influence any other Member to buymore products than they can reasonably use or sell to retail customers in a month. In addition,

Comment [TD22]: As you vet both tmarketing community and LIFE, you may

people stating as an independent cont

should be able to do what I want, and b

many companies as I want.

Well, on the surface this may seem l ogic

However, there is a big misunderstandinterm Independent Contractor.

Being classified as an independent cont

classification for tax purposes only. This

term used In the US Code which exempt

sellers and real estate agents f rom emp

Just because a person is running their ow

business doesnt mean they are exempt

policies set forth by a company to t hose

(independent distributors) represent th

company must protect its brand by regu

that brand is marketed by others. We se

franchises, manufactured reps, licenses,

even see it in different religious denomi

with independent churches who are ass

with them.

You can learn t he meaning behind Indep

Contractor by visiting:TheNetworkMarketingAdvocates.com
http://thenetworkmarketingadvocates.com/what-does-it-mean-to-be-an-indepdent-distributor-in-network-marketing/http://thenetworkmarketingadvocates.com/what-does-it-mean-to-be-an-indepdent-distributor-in-network-marketing/http://thenetworkmarketingadvocates.com/what-does-it-mean-to-be-an-indepdent-distributor-in-network-marketing/


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bonus buying is strictly prohibited. Bonus buying includes any mechanism or artifice to qualify

for rank advancement, incentives, prizes, commissions or bonuses that is not driven by bona fideproduct or service purchases by end user consumers. Bonus buying includes, but is not limitedto, purchasing products through a straw man or other artifice.

3.20- Adherence to Laws and Ordinances

Members shall comply with all federal, state, and local laws and regulations in the conductof their businesses. Many cities and counties have laws regulating certain home-basedbusinesses. In most cases these ordinances are not applicable to Members because of the natureof their business. However, Members must obey those laws that do apply to them. If a city orcounty official tells a Member that an ordinance applies to him or her, the Member shall be politeand cooperative, and immediately send a copy of the ordinance to the Member ServicesDepartment of LIFE.

3.21- One LIFE Business Per Member and Per Household

A Member may operate or have an ownership interest, legal or equitable, as a soleproprietorship, trustee, or beneficiary, in only one LIFE business. No individual may have,operate or receive compensation from more than one LIFE business unless approved by LIFE.Individuals of the same Household may not enter into or have an interest in more than one LIFEBusiness.

In order to maintain the integrity of the LIFE Compensation Plan, Spouses who wish tobecome LIFE Members must be jointly enrolled as one LIFE business. Spouses, regardless ofwhether one or both are signatories to the Independent Member Application and Agreement, maynot own or operate any other LIFE business, either individually or jointly, nor may theyparticipate directly or indirectly (as a trustee, trust beneficiary, or have any other legal orequitable ownership) in the ownership or management of another LIFE business in any form.

An exception to the one business per Member/household rule will be considered on a caseby case basis if a Member receives an interest in another business through inheritance. Requestsfor exceptions to this policy must be submitted in writing to the Member Services Department.

In cases where Members marry, one business must be selected and the second businessterminated.

3.22- Actions of Household Members or Affiliated Parties

If any member of a Members immediate family or any individual residing with a Memberengages in any activity which, if performed by the Member, would violate any provision of theAgreement, such activity will be deemed a violation by the Member and LIFE may takedisciplinary action against the Member pursuant to the Policies and Procedures.

Comment [TD23]: This is another ex

policy for the independent LIFE members

Lets say your child decides they want to

LIFE business while they are off at college

in the military, then come home. Instead

saying get rid of the business, the family

the situation to LIFE management.

Comment [TD24]: This is a typical po

in the majority of policies and procedur

selling companies which use a m ulti-levmarketing structure.


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3.23- Requests for Records

As a LIFE member, you are responsible for maintaining appropriate accounting records tosupport your LIFE business. Any approved record request will require a fee of $1.00 per pageper copy.

3.24- Roll-up of Downline Organization

When a vacancy occurs in a Downline Team due to the termination of a LIFE business, thefollowing occurs:

If the Terminated Member has one Downline Team then that organizationwill be moved up one level.

If the Terminated Member has more than one Downline Team then the

additional organizations must be reviewed.

If the additional Downline Teams do not have a Member with prior yearor current year rank of a Leader 3 then each organization from largest tosmallest of Downline Teams 2 and greater are transferred to the bottom ofthe 1st Downline Team.

For Downline Teams 2 and greater, if there is a Member with a prior yearor current year rank of a Leader 3 then those organizations do not move.The terminated Member position becomes a Ghost Member, with nocommission calculation, but all sales volume continues to roll upline. Forthose Downline Teams 2 and greater that dont have a Leader 3 then theyare transferred to the bottom of Downline Team #1.

3.25- Sale, Transfer or Assignment of LIFE Business

Although a LIFE business is a privately owned and independently operated business, thesale, transfer or assignment of a LIFE business is subject to certain limitations. If a Memberwishes to sell his or her LIFE business the following criteria must be met:

The selling Member must offer LIFE the right of first refusal to purchasethe business on the same terms as agreed upon with a third-party buyer.LIFE shall have fifteen days from the date of receipt of the written offerfrom the seller to exercise its right of first refusal.

Buyer must have a minimum current rank of Leader. The seller must offerMembers the opportunity to purchase the business in the following order:

1. Upline Starts with largest rank and works down to smallest rankwith a minimum of Leader.

2. Downline Starts with largest rank and works down to smallestrank with a minimum of a Leader.


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Before the sale, transfer or assignment can be finalized and approved byLIFE, any debt obligations the selling party has with LIFE must besatisfied.

The selling Member must be in good standing and not in violation of anyof the terms of the Agreement in order to be eligible to sell, transfer orassign a LIFE business.

Prior to selling an independent LIFE business, the selling Member must notify LIFEsMember Services Department in writing and advise of his or her intent to sell his/her LIFEbusiness. The selling Member must also receive written approval from the Member ServicesDepartment before proceeding with the sale. No changes in Upline or Downline Organizationscan result from the sale or transfer of a LIFE business.

3.26- Separation of a LIFE Business

LIFE Members sometimes operate their LIFE businesses as husband-wife partnerships. Atsuch time as a marriage may end in divorce, arrangements must be made to assure that anyseparation or division of the business is accomplished so as not to adversely affect the interestsand income of other Upline or Downline Organizations.

During the divorce or entity dissolution process, the parties must adopt one of the followingmethods of operation:

One of the parties may, with consent of the other(s), operate the LIFEbusiness pursuant to an assignment in writing whereby the relinquishingspouse or trustees authorize LIFE to deal directly and solely with the otherspouse or trustee.

The parties may continue to operate the LIFE business jointly on abusiness-as-usual basis, whereupon all compensation paid by LIFE willbe paid according to the status quo as it existed prior to the divorce filingor dissolution proceedings. This is the default procedure if the parties donot agree on the format set forth above.

Under no circumstances will the Downline Organization of divorcing Spouses or adissolving business entity be divided. Similarly, under no circumstances will LIFE splitcommission and bonus checks between divorcing Spouses or members of dissolving entities.LIFE will recognize only one Downline Organization and will issue only one commission checkper LIFE business per commission cycle. Commission checks shall always be issued to the sameindividual.

If a former Spouse has completely relinquished all rights in the original LIFE businesspursuant to a divorce, he or she is thereafter free to enroll under any sponsor of his or herchoosing without waiting six calendar months. The former Spouse shall have no rights to any


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Members in his or her former organization or to any former retail customer. He or she must

develop the new business in the same manner as would any other new Member.

3.27- Enrollment

When enrolling a new Member, the Enroller may assist the new applicant in filling out theenrollment materials. However, the applicant must personally review and agree to theIndependent Member Application and Agreement, LIFEs Policies and Procedures, and the LIFECompensation Plan, as provided in Paragraph 4 of the Terms and Conditions of the IndependentMember Application and Agreement. The Enroller may not fill out the Independent MemberApplication and Agreement on behalf of the applicant and agree to these materials on behalf ofthe applicant.

3.28- Succession

Upon the death or incapacitation of a Member, his or her business may be passed to his orher heirs. The business can only be bequeathed to an individual or trust. Appropriate legaldocumentation must be submitted to the Company to ensure the transfer is proper. Accordingly,a Member should consult an attorney to assist him or her in the preparation of a will or othertestamentary instrument. Whenever a LIFE business is transferred by a will or othertestamentary process, the beneficiary acquires the right to collect all bonuses and commissions ofthe deceased Members marketing organization provided the following qualifications are met.

The successor(s) must:

Execute a Member Agreement;

Comply with terms and provisions of the Agreement;

Meet all of the qualifications for the deceased Members status;

Provide LIFE with an address of record to which all bonus andcommission checks will be sent.

3.28.1- Transfer Upon Death of a Member

To effect a testamentary transfer of a LIFE business, the executor of the estate mustprovide the following to LIFE: (1) an original death certificate; (2) certified letters testamentaryor a letter of administration appointing an executor; and (3) written instructions from theauthorized executor to LIFE specifying to whom the business and income should be transferred.

3.28.2- Transfer Upon Incapacitation of a Member

To effectuate a transfer of a LIFE business because of incapacity, the successor must

provide the following to LIFE: (1) a notarized copy of an appointment as trustee; and (2) anotarized copy of the trust document or other documentation establishing the trustees right toadminister the LIFE business.


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3.29- Telemarketing Techniques

The Federal Trade Commission and the Federal Communications Commission each havelaws 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 LIFE does notconsider Members to be telemarketers in the traditional sense of the word, these governmentregulations broadly define the term telemarketer and telemarketing so that your inadvertentaction of calling someone whose telephone number is listed on the federal do not call registrycould cause you to violate the law. Moreover, these regulations must not be taken lightly as theycarry significant penalties.

Therefore, Members must not engage in telemarketing in the operation of their LIFEbusinesses. The term telemarketing means the placing of one or more telephone calls to anindividual or entity to induce the purchase of a LIFE product or service, or to recruit them for theLIFE opportunity. Cold calls made to prospective customers or Members that promote either

LIFEs products or services or the LIFE opportunity constitute telemarketing and are prohibited.However, a telephone call(s) placed to a prospective customer or Member (a prospect) ispermissible under the following situations:

If the Member has an established business relationship with the prospect. Anestablished business relationship is a relationship between a Member and aprospect based on the prospects purchase, rental, or lease of goods or servicesfrom the Member, or a financial transaction between the prospect and theMember, within the eighteen (18) months immediately preceding the date of atelephone call to induce the prospect's purchase of a product or service.

The prospects personal inquiry or application regarding a product or serviceoffered by the Member, within the three (3) months immediately preceding thedate of such a call.

If the Member receives written and signed permission from the prospectauthorizing the Member to call. The authorization must specify the telephonenumber(s) which the Member is authorized to call.

Members may call family members, personal friends, and acquaintances. Anacquaintance is someone with whom the Member has at least a recent first-handrelationship within the preceding three months. Bear in mind, however, that if theMember engages in card collecting with everyone he or she meets andsubsequently calls them, the FTC may consider this a form of telemarketing thatis not subject to this exemption. Thus, if a Member engages in callingacquaintances, the Member must make such calls on an occasional basis onlyand not make this a routine practice.

Members shall not use automatic telephone dialing systems or software relative tothe operation of their LIFE businesses.


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Members shall not place or initiate any outbound telephone call to any person that

delivers any pre-recorded message (a robocall) regarding or relating to the LIFEproducts, services or opportunity.

3.30- Back Office Access

LIFE makes online Back Offices available to its Members. Back Offices provide Membersaccess to confidential and proprietary information that may be used solely and exclusively topromote the development of a Members LIFE business and to increase sales of LIFE products.LIFE reserves the right to deny a Members access to the Back Office at its sole discretion.

SECTION 4- RESPONSIBILITIES OF MEMBERS

4.1- Change of Address, Telephone, and E-Mail Addresses

To ensure timely delivery of products, support materials, commission, and tax documents, itis important that LIFEs files are current. Street addresses are required for shipping since a postoffice box is not deemed a valid shipping address. A Member whose contact informationchanges, must amend his or her contact information through their Member Back Office.

4.2- Continuing Development Obligations

4.2.1- Ongoing Training

Any Member who enrolls another Member into LIFE must perform a bona fide assistanceand training function to ensure that his or her downline is properly operating his or her LIFEbusiness. Members must have ongoing contact and communication with the Members in theirDownline Organization. Examples of such contact and communication may include, but are notlimited to: newsletters, written correspondence, personal meetings, telephone contact, voice

mail, electronic mail, and the accompaniment of downline Members to LIFE meetings, trainingsessions, and other functions. Upline Members are also responsible to motivate and train newMembers in LIFE product knowledge, effective sales techniques, the LIFE Compensation Plan,and compliance with Company Policies and Procedures. Communication with and the trainingof downline Members must not, however, violate Sections 3.1 and/or 3.2 (regarding thedevelopment of Member-produced sales aids and promotional materials and advertising).

Members should monitor the Members in their Downline Organization to guard againstdownline Members making improper product or business claims, or engaging in any illegal orinappropriate conduct.

4.2.2- Increased Training Responsibilities

As Members progress through the various levels of leadership, they will become moreexperienced in sales techniques, product knowledge, and understanding of the LIFE program.They will be called upon to share this knowledge with lesser experienced Members within theirDownline Organization.


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4.2.3- Ongoing Sales Responsibilities

Regardless of their level of achievement, Members have an ongoing obligation tocontinue to personally promote sales through the generation of new customers and throughservicing their existing customers.

4.3- Nondisparagement

LIFE wants to provide its independent Members with the best products, Compensation Plan,and service in the industry. Accordingly, we value your constructive criticisms and comments.All such comments should be submitted in writing to the Member Services Department.Remember, to best serve you, we must hear from you! While LIFE welcomes constructive input,negative comments and remarks made in the field by Members about the Company, its products,or Compensation Plan serve no purpose other than to sour the enthusiasm of other LIFEMembers. For this reason, and to set the proper example for their downline, Members must not

disparage, demean, or make negative remarks about LIFE, other LIFE Members, LIFEsproducts, the Compensation Plan, or LIFEs owners, directors, officers, or employees.

4.4- Providing Documentation to Applicants

Members must provide the most current version of the Policies and Procedures and theCompensation Plan to individuals whom they are enrolling to become Members before theapplicant signs an Independent Member Application and Agreement, or ensure that they haveonline access to these materials.

SECTION 5- SALES REQUIREMENTS

5.1- Product Sales

The Compensation Plan is based on the sale of LIFE products and services to endconsumers. Members must fulfill personal and Downline Organization retail sales requirements(as well as meet other responsibilities set forth in the Agreement) to be eligible for bonuses,commissions and advancement to higher levels of achievement. For each monthly commissionperiod, a Member must have 50 points in customer subscription sales volume to be eligible forcommissions. A new Member is given a 6 month grace period to meet this sales requirement.

5.2- No Territory Restrictions

There are no exclusive territories granted to anyone.

5.3- Sales Receipts

All Members must provide their retail customers with two copies of an official LIFE salesreceipt at the time of the sale. These receipts set forth the 30-day money back guarantee as wellas any consumer protection rights afforded by federal or state law. Members must maintain allretail sales receipts for a period of two years and furnish them to LIFE at the Companys request.

Comment [TD25]: Very powerful po

protects both the company and the field

being classified a Ponzi or pyramid sche

The case law has already been establish

qualify as a legitimate direct selling com

network marketing, then customer sale

requirement for each sales rep, and not

building an internal network.

Comment [TD26]: A very standard p

in the majority of direct sales companie

what type of sales structure t hey use (Si

or Multi-Level.)

Notice the company is very clear, that

constructive criticism is not seen as

disparagement. It is only when an indep

member, takes the constructive criticis

turns in outward

LIFE Policy and Procedures Reviewed By MLM Advocate Troy Dooly

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Transcript of LIFE Policy and Procedures Reviewed By MLM Advocate Troy Dooly