The following are the Policies & Procedures for members of the efusjon energy club (the "Program") and are incorporated by reference into the Distributor's Agreement which Distributors (as defined below) enter into with the Company (the "Distributor's Agreement").

These Policies & Procedures are established to clarify and define the rights and responsibilities of efusjon, Inc., a Nevada corporation (the "Company"), and its independent contractors (each, a "Distributor", and collectively, the "Distributors"). They are provided as guidelines for both the Distributor and the Company to interact in the most effective manner. Since these materials can change from time to time, it is the responsibility of the Distributor to keep current regarding such changes by checking for updates on www.efusjon.com, and when Sponsoring a new Distributor, to make the latest updated materials available to the potential Distributor so that he/she may review the most current documents and information.

Advancement

All advancement to a higher position is given upon reaching qualification.

Advertisement; No Changes to Company Materials

In order to maintain the integrity and accuracy of the Company image, stringent requirements and guidelines governing advertising and promotion by Distributor must be followed. Distributors are prohibited from using any type of advertising using the Company's intellectual property (e.g., the Company's name, trademarks, logos or products) without the Company's prior written approval. Any prospective ads or scripts must also be submitted to the Company for prior written approval. Further, the Distributor must obtain the Company's prior written approval in order to use any advertising on the Internet using the Company's intellectual property (e.g., the Company's name, trademarks, logos or products). Misuse of the Company's intellectual property (e.g., the Company's name, trademarks, logos or products) and its affiliated products and/or services diminishes the goodwill of the Company and affects all Distributors. All requests for approval of advertising, marketing and/or other materials using Company intellectual property must be submitted to the Compliance Department at: Efusjon, Inc., Compliance Department, P O Box 1740. Bend, OR. 97709.

Distributor has no authority to change, omit, add to, waive, discharge or alter in any way any provisions of publications or agreements issued by the Company. Distributor may not publish, distribute telemarket or circulate advertisements on behalf of the Company or Distributor in connection with the Company's products. Any and all advertisements must either be official Company promotion materials, or have been approved in advance in writing by the Company.

Notwithstanding anything to the contrary contained herein, the Distributor may use the Company name or logo in directory listings and on business cards or letterhead without Company consent or approval so long as there also appears prominently thereon the words "Independent Distributor", provided that the Company reserves the right to require the Distributor to cease using the Company name or logo in the Company's sole and absolute discretion.

Advisory Board of Distributors

In its sole and absolute discretion, the Company may create an Advisory Board of Distributors who have achieved significant positions and show that they want to achieve much more at the time of appointment. The purpose of the Advisory Board of Distributors is to advise the corporate officers and Board of Directors on different issues that pertain to their fellow Distributors. The Advisory Board of Distributors, if created by the Company, will have such number of seats as the Company may determine from time to time in the Company's sole and absolute discretion. The Company selects the members of the Advisory Board of Distributors in the Company's sole and absolute discretion. Each member of the Advisory Board of Distributors serves at the pleasure of the Company and may be removed and replaced in the Company's sole and absolute discretion. In the event that the Agreement between the Company and a Distributor who sits on the Advisory Board of Distributors is terminated, such Distributor shall immediately cease to be a member of the Advisory Board of Distributors.

Age and Identification Requirement

To be eligible to be a Distributor: (a) if Distributor is an individual, then such Distributor must be at least eighteen (18) years of age and have attained the legal age of majority pursuant to the applicable laws in the state or country in which such Distributor resides; (b) if such Distributor is a legal entity, each equity owner of such Distributor is at least eighteen (18) years of age and has attained the legal age of majority pursuant to the applicable laws in the state or country in which such equity owner resides; and (c) Distributor must have valid Social Security Number or Federal Employer Identification Number.

Agreement

The agreement between each Distributor and the Company collectively consists of: (a) the Distributor's Independent Contractor Application & Agreement (the "Distributor's Application"); (b) the Distributor's Agreement; (c) these Policies & Procedures, as may be amended and/or restated by the Company in its sole and absolute discretion from time to time; and (d) the Company's Compensation Plan and bonus programs, as posted on www.efusjon.com and as may be amended and/or restated by the Company in its sole and absolute discretion from time to time (the "Compensation and Bonus Plans", and together with clauses (a) through (c) and such other agreements as the Company may enter into with Distributor from time to time, collectively, the "Agreement").

Amendments

Since federal, state and local laws may periodically change as well as business practices, in order to maintain a current and viable business, the Company specifically reserves the right to amend, revise, institute, alter, cancel, modify and/or otherwise make changes to the Agreement and any and all other materials distributed by the Company without Distributor's consent. The Company and Distributor acknowledge and agree that such revisions shall become effective immediately upon the Company posting such revised versions on www.efusjon.com or immediately upon the Company's delivery of notice of such change to Distributor, and Distributor hereby agrees to be bound by any such changes. For greater clarity, and without limiting the foregoing, these Policies & Procedures and the Compensation and Bonus Plans in effect from time to time shall be effective and binding between the Distributor and the Company immediately upon the Company posting such revised versions on www.efusjon.com. Each Distributor is solely responsible for checking www.efusjon.com to stay abreast of the latest versions of these Policies & Procedures and the Compensation and Bonus Plans and the other provisions of the Agreement. The Company has no duty to notify Distributor of any changes to the Agreement or any other materials that it distributes other than posting the current versions of such documents and information on www.efusjon.com.

Associate

An Associate is a Member whose account has generated monthly sales volume of at least One Hundred Twenty Dollars ($120.00 USD) or more through personal purchase and/or retail sales in a calendar month and received a position in the Company's Matrix Compensation Plan. An Associate must attain a minimum product sales volume each month for One Hundred Twenty Dollars ($120.00 USD) to stay active. If an Associate fails to generate a minimum product sales volume of One Hundred Twenty Dollars ($120.00 USD) for two (2) consecutive months, then the Associate will be demoted to rank of Member and lose his/her/its position in the Company's Compensation Plan. Associates are not Matrix commission eligible if they do not generate a minimum product sales volume of One Hundred Twenty Dollars ($120.00 USD) for any given month. Example: If Associate does not generate One Hundred Twenty Dollars ($120.00 USD) in product sales volume for month B, Associate will not be paid downline commissions for month B and will be demoted to Member rank. If Associate does not reach One Hundred Twenty Dollars ($120.00) in product sales volume for month B or C, then Associate will not be paid downline commissions for month B or C, will be demoted to Member rank, and will lose his/her/its position in the Company's Matrix Compensation Plan. If Associate is demoted to Member rank, Member can re-qualify to move back to Associate status. Example: Member can generate One Hundred Twenty Dollars ($120.00 USD) in product sales volume, become an Associate and will be placed under original Sponsor in nearest available position (the previous position in the Company's Matrix Compensation Plan will not be available). Associate will be paid the applicable percentage set forth in the Company Compensation Plan of the total sales volume for retail orders through the Associate's Replicated Web-Page. Associates will also receive commissions on Member orders. Associate will receive the applicable percentage set forth in the Compensation Plan of total sales volume generated by every personally enrolled Member each month. Associates will not get paid for their Members' retail customers. Monthly downline commissions will be paid on the tenth (10th) calendar day of each month (or the next business day thereafter if such day is not a business day) for the previous month's downline volume.

Authorized Promotional Materials

Only those materials which have been made available directly by the Company are allowed for promotional purposes. The Company will produce and offer the materials reasonably necessary, in the Company's sole and absolute discretion, to assist Distributor in building his/her/its business. No personalization or modification of any of these Company materials is allowed in any form. Distributors may not develop, publish, sell or distribute any promotional materials they create. This prohibition applies also to sales aids and brochures promoting a specific downline or organization. The Company welcomes Distributor input to promotional ideas for future Company publication.

Auto-ship

An auto ship feature has been established for your convenience but is not required. Reoccurring auto ship orders must be scheduled between the first (1st) and twenty-fifth (25th) of each month. Manual orders may be placed on any g iven day of any given month. All manual orders placed on the last day of any given month must be placed before 12AM ET, (9PM PT) to qualify for that month. Any changes to auto ships must be submitted forty-eight (48) hours prior to your auto ship date.

Bonus Payments

The Company pays Distributor compensation for the sale of product only after the Company has received good funds (in U.S. Dollars) for the total amount due to the Company.

The Company may offset against any compensation due to Distributor for any debts due from Distributor to the Company. These debts can arise from cancellations or refunds in his/her/its downline organization. These may include, without limitation, underpayment, postage due, shipping and handling charges, returned check, credit card or debit card charge-backs, NSF charges and debits accrued from refunds or returned products on which upline compensation has been paid.

Change of Address

Distributor requiring a change in his/her record (address, telephone number, etc.) must make correction in his/her Personal Back Office, excluding Name, DOB, SS# or EIN.

Claims - Income

Distributor may not make any claims as to income potential either written or oral except those prepared by the Company for illustration purposes only in official Company promotional media. Income projections, including those based solely on mathematical projections without regard to probable sales success, MAY NOT be made to prospects except those shown in official Company promotional media.

The Company believes that the income possibilities are substantial enough without having to exaggerate or misrepresent the potential. The Company will not tolerate false income projections made to either a customer or prospective Distributor. It is unlawful to make false or misleading representations as to income and/or potential income.

• It is unlawful to show your own or someone else's checks or payment records as a means of recruiting.
• Distributor is not guaranteed a specific income, and any income which Distributor receives pursuant to the Agreement is derived solely from the sale of Company products to the end consumer, building a sales organization and training that organization to sell, Sponsor and train.

Claims - Products

Distributor will not make any claims of any kind (which can include personal testimonies) pertaining to the Company's products except those given in official Company promotional materials. Distributors are expressly forbidden to imply that additional products or services will be added or that enhancements to the Compensation and Bonus Plans are forthcoming.

Distributor must not state or imply that the Company approves or endorses any privately-produced motivational literature or training materials used within his/her/its own organization.

Distributor may not make any claims of any kind pertaining to benefits of the Company's products except those given in official Company promotional media. Distributor may not represent or imply, directly or indirectly, that the Company's products have health, nutritional and/or weight-loss benefits except to the limited extent as may be expressly set forth in official Company promotional media. When presenting the Program to others, Distributor shall present the Program in its entirety, without omission, distortion or misrepresentation.

Distributor may not represent or imply, directly or indirectly, that the Program or the Company's products have been approved or endorsed by any governmental agency, including, without limitation, the Food and Drug Administration. Federal and State regulatory agencies do not approve or endorse any marketing company, product or programs.

Commission Issues

Any commission error generated by the Company's computerized systems (e.g., "I did not receive my check") must be communicated and addressed in writing to Company Customer Service no later than sixty (60) calendar days after the date of product purchase or such claims are irrevocably and permanently waived by Distributor. It is the responsibility of the Distributor to supply all essential supporting documentation.

Any questions or disputes about compensation (i.e., bonus/commission) calculations or checks (e.g., "I did not receive the amount I believe I am owed") must be raised with the Company Customer Service Department within one (1) calendar month after the payment date or such claims are irrevocably and permanently waived by Distributor. All disputes must be submitted to the Company's Customer Service Department in writing. It is the responsibility of the Distributor to supply all essential supporting documentation.

In the event the Agreement is terminated for any reason (whether by the Company or the Distributor), the Company will pay Distributor for all amounts that Distributor has earned through the date of termination of the Agreement less offsets against amounts that Distributor owes to the Company, which amounts shall be due and payable to Distributor as and when they would normally become due and payable if the Agreement were not terminated.

Commitment

In order to properly promote Company products, services and the Compensation and Bonus Plans, as well as to achieve the maximum potential for success, Distributor agrees to:

• Become well acquainted with all Company products, materials, including, without limitation, the Distributor's Agreement, Compensation and Bonus Plans and Policies & Procedures.
• Attend training provided by the Company or upline Associates.
• Sell products at retail.
• Know and comply with all applicable federal, state and local laws and requirements.
• Make no claims or guarantees concerning products or the amount of money to be made other than those contained in official Company promotional media.
• Take responsibility for the training and education of those Distributors in their immediate sales organizations, whether personally Sponsored or not.
• Dress appropriately (as well as explain to your guests) when attending business presentations to further enhance the Company's and your professional public image.
• Ensure that all paperwork submitted to the Company is complete and accurate in accordance with the processing instructions and that paperwork is accompanied by full and complete payment.

Communication Channels

As a Sponsor, it is the responsibility of each Associate to answer all questions within their capacity asked by their downline. In the event the question cannot be answered, the questions should be directed to the next upline Associate.

Contact the Company only after the chain of Sponsorship has been followed. This system has been established to allow for efficient networking operations.

Company

The Company markets its products and services through independent contractors, called Distributors. Each Distributor helps the Company by purchasing and then selling products to their personal customers. Associates also Sponsor other Distributors.

Compliance

A Distributor will not be eligible for any compensation, nor will he/she/it be allowed to Sponsor another Distributor until a signed Distributor Agreement has been received (electronic signature via the Company's website, if offered, is acceptable) and approved by the Company and such Distributor abides by the provisions of the Agreement.

The Program is built upon sales of products to the end consumer. The Company recognizes that its Distributors may wish to also purchase products, in addition to monthly Auto-ship, for personal and family use and gives commission for such purchases. However, the Company expressly prohibits purchases of products solely for qualification in the Company's Compensation and Bonus Plans.

Confidential Information

The Company may, in its sole and absolute discretion, provide Distributors with information developed, compiled, maintained and/or otherwise acquired by the Company (including, without limitation, information concerning the Associate's downline organization) ("Confidential Information"). Such Confidential Information constitutes commercially advantageous, unique and proprietary trade secrets of the Company, which it keeps as proprietary and confidential. During the term of the Agreement between Distributor and the Company, the Company grants to Distributor a personal, non-exclusive, non-transferable and revocable right to use such Confidential Information to facilitate Distributor's business as contemplated under the Agreement. Distributor acknowledges the substantial value of the Confidential Information to the Company and agrees to maintain all Confidential Information in strictest confidence and to use it only as authorized by the Company and as provided in the Agreement. Distributor will not disclose such information to any third party directly or indirectly, nor use the information to compete with the Company directly or indirectly. Distributor will only use the Confidential Information for the operation of the Distributor's business pursuant to the Agreement. Upon the termination of the Agreement, Distributor shall promptly return any and all Confidential Information (and any and all copies thereof) to the Company. Further, Distributor shall permanently destroy any electronic copies of any such Confidential Information and, upon the Company's request, will certify to the Company that such destruction is complete. The foregoing will survive the termination of the Agreement. The Company would not provide the above Confidential Information to the Distributor but for Distributor's agreement to this provision.

Copyright

US Copyright law protects the Company's materials. All rights are reserved, including the right to alter, revise and reprint these materials in whole or in part.

Reproduction in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system is not permitted now or in the future without the Company's prior written consent.

Because of the copyright (and the technical information required to market the Company opportunity), no one shall have the right to reproduce for personal use or for sale any marketing materials, literature, logos, recorded Company events, speeches, flyers, websites, forms, videos, brochures or other aids relevant to the Company without the Company's prior written consent.

Credit Card Charge-Backs

The Company may, in its sole and absolute discretion, immediately terminate Distributors responsible for credit card charge-backs. All commissions will be reversed from Distributor and entire upline as a result of credit card charge-backs.

Disclaimer

INCOME EXAMPLES, AS EXPRESSED, ARE STRICTLY MEANT TO ILLUSTRATE HOW COMMISSIONS ARE EARNED IN THE COMPENSATION AND BONUS PLANS. EXAMPLES ARE NOT MEANT AS INCOME PROJECTIONS, NOR ARE THEY INDICATIVE OF A DISTRIBUTOR'S EXISTING OR FUTURE INCOME. INCOME EXAMPLES CONSTITUTE FORWARD LOOKING STATEMENTS. ALL SUCH FORWARD LOOKING STATEMENTS ARE FOR EXAMPLE PURPOSES ONLY AND INVOLVE RISKS AND UNCERTAINTIES. THERE CAN BE NO ASSURANCE THAT THE FORWARD-LOOKING STATEMENTS WILL PROVE TO BE ACCURATE. IN LIGHT OF THE SIGNIFICANT UNCERTAINTIES INHERENT IN THE FORWARD LOOKING STATEMENTS INCLUDED IN INCOME EXAMPLES FROM TIME TO TIME, THE INCLUSION OF SUCH INFORMATION SHOULD NOT BE REGARDED AS A REPRESENTATION OR WARRANTY BY THE COMPANY OR ANY OTHER PERSON OR ENTITY THAT THE INCOME EXAMPLES WILL BE ACHIEVED IN ANY SPECIFIED TIME FRAME, IF AT ALL.

Discontinued Items

Discontinued items and items that are back-ordered will be listed at www.efusjon.com or Personal Back Office.

Distributor Definition

Distributor is one who has completed and submitted a Distributor Application and Distributor Agreement that has been accepted and approved by Company in its sole and absolute discretion. The Distributor, once the Distributor Application and Distributor Agreement has been accepted and approved by the Company, may purchase product from the Company at the wholesale cost. The Distributor's business of purchasing and reselling Company product, and training his/her/its downline organization to sell Company product and train additional downline members, is referred to herein from time to time as a "Distributorship."

The Company reserves the right to accept or reject anyone as a Distributor. If the Company rejects a Distributor's Application, notification of such rejection will be given within thirty (30) days from the date the Distributor Application and Distribution Agreement were received at the Company corporate office.

Distributor may have only one direct Sponsor and should choose that Sponsor wisely, one who will help them in the business.

A legal entity formed in the U.S. may be a Distributor.

Distributor may also be an "Associate" or "Executive".

Distributor may Sponsor his/her spouse to operate as an independent business.

Married couples may become a Distributor either as joint applicants with the same business interest or as individual applicants with separate business interests. If spouses elect to be separate, they must be personally Sponsored by each other or the same person and placed in the same group or sales organization. If a husband and wife, acting as joint applicant Distributors divorce, they must notify the Company in writing, signed by both parties, indicating how the Distributor position is to be owned thereafter. In the absence of a written agreement signed by both parties, the Company or a court of competent jurisdiction shall decide the ownership of the Distributor position.

Distributor / Independent Contractor

Distributor is, upon acceptance, an independent contractor conducting business for his/her/its own account and not as an agent, joint venturer, partner, employee or franchisee of the Company.

As such, Distributor must provide his/her/its actual Social Security Number or Federal Tax Identification Number for tax reporting purposes. The Distributor further understands that he/she/it will not be treated as an employee in regard to any laws covering employees. These include, but are not limited to,

• Federal Insurance Contributions Act (FICA)
• Social Security Act
• Federal Unemployment Tax Act
• Income Tax withholding at the source
• Federal or state taxes
• Local license fees that may become due as a result of activities under this agreement

Distributor is responsible for obtaining any and all licenses required by applicable law at Distributor's sole expense.

The Company does not discriminate in its acceptance of Distributors because of race, creed, sex, color or national origin.

Distributorship

Only an Associate who is in good standing in the Program may Sponsor someone wanting to become a Distributor. An Associate must be relatively easy to contact by the Company and his/her Distributors.

The Company does not require a Distributor to Sponsor anyone to participate as a Member in the Program. Commissions or bonus earned are not based on Sponsoring or recruiting but are paid only on the sale of product.

Distributor determines his/her own methods of promoting sales, provided they are in compliance with the Agreement, including, without limitation, these Policies & Procedures.

Distributor determines his/her/its own hours of operation, supplies and pays for items needed to operate her/his/its own business.

In the event that more than one person Sponsors a prospective Distributor an evaluation will be necessary to determine who has the Sponsoring right. The date on the Distributor Application form will be the first criteria for evaluation. The Company will determine in good faith who the Sponsor will be and the Company's determination shall be final and binding on all parties involved.

Downline Volume Commissions

Downline volume commissions are paid on the tenth (10th) calendar day of each month (or the next business day thereafter if such date is not a business day) for the previous calendar month's total downline volume. If the Distributor elects to receive his/her/its commission by printed check, it will be issued and mailed out on the tenth (10th) calendar day of each month (or the next business day thereafter if such date is not a business day) via the U.S. Postal Service. If the Distributor elects to receive his/her/its commission through direct deposit, such commissions will be deposited into the Distributor's accounts between the ninth (9th) and eleventh (11th) calendar day of each month (or the next business day thereafter if such days are not business days). You must have three (3) active Associates at month's end to be commission qualified.

End of Month

The end of the month for enrollment, compensation or anything else pertaining to the Program will be the last calendar day of any given month at 12:00am EST and 9:00pm PST.

Ethics

The Company conducts business in an ethical and credible manner and expects its Distributors to act in the same fashion when dealing with their customers, each other, Distributors in other Network Marketing companies or the Company. Distributor may promote his/her/its business in any legal and ethical manner otherwise in compliance with the Agreement. The Company reserves the right to intercede to correct unethical activity on the part of any Distributor regardless of rank and to take such remedial action as the Company determines in its sole and absolute discretion, including, without limitation, termination of the Agreement.

Expenses

Each Distributor shall be solely responsible for any and all fees, costs and expenses that such Distributor incurs in connection with his/her/its purchase and sale of products and/or other services that he/she/it performs pursuant to the Agreement, and the Company shall have no obligation whatsoever to reimburse Distributor for any such fees, costs or expenses.

Governing Laws

The Agreement (including, without limitation, these Policies & Procedures) constitutes a contract under the laws of the State of Oregon and shall be governed and construed in accordance with the laws of said State and without regard to the conflicts of laws principles thereof. Any action or proceeding brought under the Agreement shall be brought exclusively in the state or federal courts sitting in Bend, Oregon, or Portland, Oregon, the parties hereto hereby waiving any claim or defense that either such forum in not convenient or proper.

Grievance

If Distributor has a grievance or complaint with another Distributor or any practice or conduct in relationship to the Distributor's business, he/she/it should first report the grievance to their highest upline Distributor. That Distributor should review and try to resolve the matter with the other party's highest upline Distributor. If the matter is not resolved, then the matter must be reported in writing to the Company. The Company's corporate staff will review the facts and try to resolve the grievance. If it is not resolved, the matter will be referred to the Company's Board of Directors for final review and determination which shall be binding on all parties involved.

ID number (ID#)

Distributor's Social Security Number or Federal Employer Identification Number must be listed on Distributor's Application. The Company will use commercially reasonable efforts to keep all Social Security Numbers, Federal Employer Identification Numbers and personal information confidential and will give each Distributor a Company Identification Number to be used on all order forms and correspondence to the Company.

Inactive

An Associate who has not accrued the minimum monthly orders per the Compensation Plan.

Income

Distributor is entitled to income solely pursuant to the Compensation and Bonus Plans. Distributors derive income only on the retail sale of products by either themselves or those in their downline organization. Distributors are not entitled to compensation merely by referring or Sponsoring other Distributors to join the Program.

Income Tax

• Distributors are independent contractors for federal and state income tax purposes and do not have income taxes withheld from commissions.
• Distributors are responsible for reporting and paying income taxes to local, state and federal authorities.
• Company will provide an IRS Form 1099 to the IRS and Distributor annually in accordance with federal laws. A copy of such form may be obtained from the Company.
• Distributors should consult with their attorneys and/or tax advisors with respect to the transactions contemplated by the Agreement and the operation of Distributor's business.

Inheritance

Upon the death or incapacity of a Distributor, the Distributor's position and all rights will pass to the legal successor. The Company requires photocopies of the Death Certificate (or a doctor's statement) and a probated Will, court order or other appropriate legal documentation before the transfer will be effective. The successor inheriting the position must then sign a Distributor Application and Distributor Agreement in his/her/its name and abide by the Agreement (including, without limitation, these Policies & Procedures). Please be advised that a Distributor's failure to purchase at least $120.00 of Company products for one month will result in the Distributor losing his/her/its right to receive compensation under the Compensation and Bonus Plans, but Distributor's compensation under the Compensation and Bonus Plans will be reinstated on a prospective basis so long as two months do not pass without Distributor purchasing at least $120.00 of Company products. If Distributor fails to purchase at least $120.00 of Company products for two months or more, Distributor will lose his/her/its position in the Company Compensation Plan and will no longer be entitled to any compensation under the Compensation and Bonus Plans. Based on the foregoing, the Company strongly advises that each Distributor have a Will or trust in place so that Distributor's heir and/or beneficiary can promptly replace the Distributor in the Company Compensation Plan and avoid the loss of compensation and/or position in the Company Compensation Plan. If the Distributor dies without a Will or trust, the Distributor's estate and his/her/its rights under the Agreement may be subject to probate which may take longer than two months and have the above-mentioned negative impacts on Distributor's compensation and position in the Company Compensation Plan.

Insufficient Funds

If any check, credit card or any other type of payment used to purchase products or other items from the Company is returned for insufficient funds, the person issuing the check shall be subject to an additional fee in the amount of Twenty-Five Dollars ($25.00) and such amount will be deducted from the following bonus/commission check. If a second check is returned for insufficient funds, the Distributor will forfeit certain rights and privileges including eligibility for commissions until such time as matter has been cleared.

Insurance - Personal

A homeowners policy, or your automobile insurance policy, typically do not cover losses with respect to your business (such as to theft or damage to products or equipment either in your home office or when attending to business outside the home). The same often holds true concerning business related injuries. The Company highly recommends that each Distributor immediately seek the advice of their insurance companies or agents to determine what types and levels of coverage are appropriate for such Distributor.

International

INERNATIONAL RESIDENTS The following specific policies and procedures are incorporated into the basic Policies and Procedures specifically for International Residents who are customers or independent distributors of efusjon. (An International Resident is defined for purposes of this document as any individual who is residing outside of the United States.)
(a.) International Residents acceptance of this Addendum. This addendum is incorporated into and forms an integral part of the efusjon Distributor Agreement for all International Residents, and as such it is the responsibility of each International Resident to be aware of and comply with applicable portions of this Addendum.
(b.) US Laws and Regulations. All contracts, agreements and sales of efusjon products are provided to International residents under US Laws and Regulations, with acceptance of contracts and sales of goods occurring at efusjon Company Headquarters in Bend, Oregon unless a specific efusjon office is established in the International Residents country. (Upon establishment of an office in a country other than the US, efusjon will ensure compliance with all local laws and regulations as required.) Canadian Residents: Specific rules related to the import and use of efusjon products on a Not For Resale basis shall also apply as determined by efusjon and its shipping partners.
(c.) Currency used for Pricing and Commissions. Whenever prices, commissions, or fees of any type are stated in efusjon literature, forms or on any website, the currency stated is always in US DOLLARS unless specifically stated otherwise with the official currency abbreviation following the value. (For example official currency abbreviations include: CDN for Canadian Dollar, SGD for Singapore Dollar or HKD for Hong Kong Dollar)
(d.) Applications. Applications will only be accepted if the country is officially open for business by efusjon. Distributors MUST use true and accurate information related to identity and residence on applications. In lieu of a US Social Security Number or Tax ID number, a valid ID will be required for identification with the address which is stated on the application (Tax Id number, Passport number, or Drivers License Number). In addition, a completed and current US IRS W-8BEN form is required to be on file with efusjon to receive commission payments.
(e.) Distributor Benefits. Distributor Benefits may be slightly altered dependent upon local requirements. Promotional and Incentive contests and programs may provide a dollar value for the prize or program rather than the actual prize itself. In addition, the dollar value for such a prize may be capped at a specific level for International Residents.
(f.) Not For Resale Programs. Where Not For Resale programs are implemented by efusjon for that specific country, NO further selling of purchased products is allowed. Efusjon may also limit the quantities purchased to a reasonable amount for personal use by the customer/distributor and their family. All customers and distributors MUST be referred to efusjon for direct purchase or application to become a distributor, and shipment and supply will come directly from efusjon. Where such customer referral sales are made, distributors will receive the appropriate credit for all programs as if they had made the retail sale directly.
(g.) Additional Country Specific Rules and Policies. In addition to standard US policies, efusjon on may provide additional information for your specific country as to prohibitions and other guidelines related to product claims, advertising and discussions related to other competitive company products. Please contact efusjon for specifics for your country or visit efusjon website for that specific country.
(h.) Income Taxes. International Residents are responsible for reporting their income and paying their own income taxes in the country where they claim residence. It is required to maintain a current US IRS W-8 BEN on file with efusjon to receive commissions. With such a W-8BEN form on file, commissions will be paid without US tax withholding.
(i.) Bonus and Commission Qualifications. Efusjon may elect to increase the minimum amount of commissions to issue payment for international residents. Payment may be in the form of US Dollar check, debit card, or electronic payment. Please consult your specific countries business operations plan for details.
(j.) Other Deductions. The check processing fee (if charged by efusjon) will be applicable for other forms of payment be it check, debit card or electronic payment. There may be additional deductions from other independent processing companies or banks to receive funds in local currency or withdraw funds from ATM machines.
(k.) Product returns from International Residents. Return policies may be different for each individual country efusjon supplies and will be advertised for that specific country when the country is opened. In no case, are the US returns and refund policies applicable unless specifically authorized by efusjon for your country of residence. All prepaid local duties, taxes and shipping will be deducted from any return when an International Resident is making the return of the product for a cash refund directly from the company. All returns require authorization from efusjon and instructions will be given as the disposition of the return product on an individual basis. Canadian residents please allow two to four weeks for the refund process to be completed from date of product return.
(l.) Payment Policy for International Residents. Acceptable payment for each country may be different based on the business plan for that country. However, in general Credit Cards will be accepted for purchases where possible, based on efusjon merchant bank approvals. All purchases on Credit Card processed in the US shall be in US Currency. Where credit cards are not used, alternate methods of payment will be explained for the specific country opening

Internet

• Distributors may use the Company web site.
• Distributors are prohibited from using SPAM as a marketing tool.
• Distributors wishing to establish a domain name, web site, replicated site name, social networking presence (including, but not limited to, such sites as Facebook, My Space, etc.) or any other form of Internet identification which includes in whole or in part any the Company name or trademark or products or events or anything to do with the Company in any way, is strictly prohibited without the prior written consent of the Company.
• Distributors will abide by the Privacy Policy posted on www.efusjon.com, as amended from time to time in the Company's sole and absolute discretion.

Inventory

The Company has no specific inventory requirements for its Distributors.

Legal Entities as Distributors

A legal entity formed in the United States (e.g, a corporation, partnership, limited liability company, limited partnership, etc.) may become a Distributor. However, one equity owner of such entity who is an individual must be designated as the responsible party for the entity's actions and must sign the Distributor Application on behalf of the entity. Commission and bonus checks will be made payable to the entity. In order for a legal entity to be a Distributor, the responsible party for such entity must download, complete and submit to the Company the entity application form entitled "Operating Under a Business" from the Personal Back Office.

Media

To maintain accuracy and the correct Company image, all requests for interviews intended for the media in any form and in any way concerning the Program and/or the Company, its officers, directors, owners or products, shall be forwarded directly to the Company for determination as to whether or not such interview should be granted. Only an officer of the Company may speak on behalf of the Company. Any such determination by the Company shall be final and any action by a Distributor to the contrary may result in the Company's termination of the Agreement with such Distributor.

Member

The enrollment charge for a person or entity to become a Member is Thirty Dollars ($30.00 USD) (this is a one-time cost unless a Member terminates the Agreement and thereafter seeks to rejoin, in which case, the then-current enrollment charge would again be due and payable). A Member may purchase products at wholesale and sell at retail. A Member MAY NOT sponsor other Members or Associates. Members will get a Replicated Web-Page and a Company Identification number. Members will be paid the applicable percentage set forth in the Company Compensation Plan of total sales volume of orders placed through their Replicated Web-Page from retail customers. The current retail price set by the Company through all Replicated Web-Pages is Thirty-Five Dollars ($35.00) per product unit. A Member may always upgrade to an Associate. Once a Member generates an aggregate product sales volume during a single month of One Hundred Twenty Dollars ($120.00) through personal purchase and/or retail sales, the Member will become an Associate. Once a Member becomes an Associate, such Associate will then be placed in the nearest available position to the Associate that originally sponsored them as a Member. The new Associate will thereafter be required to comply with the Associate guidelines stated in the Agreement (including, without limitation, those set forth in these Policies & Procedures and in the Compensation and Bonus Plans). Members may set up Auto-ship from the first (1st) through the twenty-fifth (25th) calendar day of each month.

Method of Payment

Visa, Master Card, American Express or Discover may be used to pay for Distributor's orders. All funds should be in U.S. Dollars. The Company does not ship COD.

Distributor is aware of the quality of products offered by the Company and the other costs and contractual obligations that occur when he/she purchases products from the Company. Distributor understands that he/she maintains a greater responsibility when ordering on a credit card account as an informed Distributor than when ordering as an average customer. Distributor waives the right of cancellation or refund on any order placed on Visa Card, Master Card, American Express, or Discover Card account(s) except cancellations and/or refunds processed through the Company. Any order returns, refunds or exchanges shall be done through the Company and not via chargebacks through Visa, Master Card, American Express or Discover Card. Distributor and entire Upline will be held responsible and commissions and bonuses will be deducted for all credit card charge-backs.

Names / Print Outs

The identities of Company Distributors are considered trade secrets and therefore considered Confidential Information and Distributor shall not sell, release or otherwise disclose such information to anyone at any time for any reason without the Company's prior written consent.

Networking

Cooperation among Distributors within the same downline (networking) leads to the total success of all concerned. This also holds true for Distributors in different lines of Sponsorship. Networking with other Distributors can result in many benefits such as:

• The costs and responsibility of training sessions, meetings and advertising being divided by Distributors.
• Larger and more productive meetings can be arranged, resulting in additional enthusiasm, excitement and success.
• The creation of reciprocity among Distributors.
• An increase in number of personal contacts that could be helpful in social and/or business situations.

Non-Waiver

The Company reserves the right to waive any provision of the Agreement (including, without limitation, any provision in these Policies & Procedures). However, failure of Company to exercise any rights in any provision of this Agreement shall not constitute a waiver of the Company's right to demand compliance therewith. Waiver of any requirement may only occur by express written waiver executed by an executive officer of the Company. Any waiver shall not constitute or operate as a waiver of any prior or subsequent breach of said provision or any other provision, term or condition.

Notification of Changes

Distributor shall have the responsibility to promptly inform the Company in the event of a change in its name or address. Such notifications shall be in writing addressed to the Company clearly showing its previous and current details.

Office Hours; Company Contact Information

The Company office is open between 8:30am and 4:00pm PST, Monday through Friday, and during scheduled meetings. The office is closed Saturday and Sunday and for all United States legal holidays. During other hours, the Company can be reached through Customer Service by phone at 541-306-4450, fax at 541-306-3843, via its email address at customerservice@efusjon.com, or you can login to your Back Office and contact us by clicking on the Customer Service Center link.

Orders

All orders must be paid as stated in the policy set forth herein entitled "Method of Payment." All forms of payment are to be made payable to the Company in U.S. Dollars. Funds must clear the Company's bank before any shipment will be made. Missing or incomplete order information may result in Distributor's order not being processed and returned to Distributor.

Personal Back Office

As part of the enrollment package, each Distributor is provided with access to a Personal Back Office, which is a personal website that provides the Distributor with information, data, forms, training videos and other materials necessary to operate the Distributor's business, including, without limitation, the ability to track the Distributor's sales revenues, order Company products and manage Distributor's downline organization. The Distributor may not allow anyone to access the Personal Back Office other than the Distributor. The Distributor is solely responsible for protecting his/her/its password to the Personal Back Office and the Company is not liable for damages to the Distributor (including, without limitation, lost revenues, liability for Company product orders, etc.) as a result of unauthorized uses of Distributor's Personal Back Office. Upon the termination of the Agreement for any reason, the Distributor's Personal Back Office will be closed and the Distributor shall no longer have access to the Personal Back Office. The Personal Back Office is the sole and exclusive property of the Company and the Distributor merely has the right to use the Personal Back Office during the term of the Agreement.

Preplacement

Preplacement will not be available. Each Distributor who becomes an Associate will be placed closest to their Sponsor in the nearest available position.

Privacy Policy

See the Privacy Policy posted at www.efusjon.com

Processing Fee

There is a Three Dollar ($3.00) processing fee each time a commission or bonus is processed. This fee will be automatically deducted from each commission or bonus paid.

Purchasing Requirement

• No person or entity is required to purchase the Company's products or sales aids in order to become a Distributor.
• Any and all purchases are made at the sole and absolute discretion of the Distributor with the exception of an enrollment fee that is at Company cost. This sum is not a service or franchise fee, but rather is strictly to offset actual costs incurred by the Company.
• Distributor should make clear in each business presentation that absolutely no inventory purchase is required to market Company products. It should be stressed that Distributor can build his/her/its business only by selling Company products on commission-only basis.
• The one and only objective of the Compensation and Bonus Plans is to promote the use of Company products to satisfied customers. The sale of wholesale products is not the goal ? but rather, usage of products by the consumer is our goal.
• This program is about acquiring customers for efusjon.

Reissuance of Commission Checks

If a commission check is returned to the Company due to a name or address incorrectly entered by the Distributor and is reissued, or if a reissuance is requested due to a name change, lost or damaged check, the Distributor will be subject to a Thirty-Five Dollar ($35.00) fee which will be deducted from the amount of the check before reissuance.

Repackaging of Products

Company products cannot be repackaged, relabeled or tampered with in any way.

Replicated Web-Page

As part of Distributor's enrollment package, the Company creates a Replicated Web-Page for each Distributor, which is a webpage that is substantially similar to www.efusjon.com but that is customized in certain respects to identify to the specific Distributor. The purpose of the Replicated Web-Page is to provide a portal through which the Distributor and his/her/its customers may order Company product at retail pricing. The Company determines the Distributor's compensation based upon the sales generated through the Distributor's Replicated Wed-Page and through the Distributor's downline organization. Upon the termination of the Agreement for any reason, the Distributor's Replicated Web-Page will be deleted and the Distributor shall no longer be entitled to a Replicated Web-Page. The Replicated Web-Page is the sole and exclusive property of the Company and the Distributor merely has the right to use and enjoy the benefits of the Replicated Web-Page during the term of the Agreement.

Reshipments

If after three (3) attempts at delivery Distributor's or Retail Customer's parcel is returned to the Company, Distributor or Retail Customer will be responsible for reshipping charges.

Retail Establishments

Distributors may not sell or display products or literature in any retail outlet without the Company's prior written approval. This does not prohibit an owner of a retail store from being a Distributor so long as such owner does not sell Company product in his/her/its retail store without the Company's prior written consent.

Distributor can promote products at fairs and trade shows with the condition that the products are not shown or displayed with any other products that are sold via Direct Sales, Network Marketing or Multi-Level Marketing.

Retail Price/Retail Sales

The Program is built on retail sales to the ultimate consumer. The Company recognizes that Distributors may wish to purchase products in reasonable amounts for their own personal use. The Company retail pricing may be subject to change at any time.

For this reason, the Company will recognize as a retail sale purchase by non-participants and/or purchases by Distributors for personal or family use in reasonable volume which are not made for purposes of qualification or advancement. It is Company policy to strictly prohibit the purchase of products in unreasonable amounts solely for the purpose of qualifying for commissions, bonuses or advancement in the Compensation and Bonus Plans.

The Company publishes a suggested retail price ("SRP") for each of its products. Distributors are not required to sell the Company's products at SRP when they purchase from the Company to resell to a customer. They may set their own pricing.

The Company Retail Order Forms are required for all sales to consumers. These sales carry the Company Retail Sales Warranty and Consumer Protection Statements required by law. Distributors must keep a copy of all sales receipts for a three (3) year period. The Company may request retail receipts from the Distributor from time to time in the Company's sole and absolute discretion.

Return of Product - Terminated Distributor

Upon the termination of the Agreement with respect to a Distributor (whether such termination is by the Company or the Distributor), all current sales aids in resalable condition purchased by the Distributor within one (1) month prior to the termination of the Agreement may be returned (shipping and handling prepaid by Distributor) to the Company. The longer time periods and other terms of the buy-back laws of GA, ID, LA, MA, MD, MT, OK, PR, TX, and WY will be honored. The Company will repurchase such products at ninety (90%) of original price, less any bonus or commissions paid to Distributor on such products. The Company may also charge back to the Distributor's Upline any commissions or bonuses received or paid on the product that is returned by the Distributor. Also, Montana Distributors who cancel within fifteen (15) days after the date they began participation in the Program, such Distributors are entitled to a one hundred percent (100%) refund of any consideration given to participate.

Return Policy

The Company has a one hundred percent (100%) satisfaction guarantee. If you are not completely satisfied, you may return the Company's products within thirty (30) calendar days after purchase for a one hundred percent (100%) refund of the product purchase price. Shipping and handling cost cannot be refunded.

Prior to returning any Company products, Distributor must obtain a Return Authorization from the Company. To acquire this authorization you must call Customer Service at 541-306-4450 or via email at customerservice@efusjon.com or login to your back office and click on Customer Service Center to send us an email. A Return Authorization Number will then be assigned to the Distributor and products must be shipped to the Company Corporate Office, freight prepaid, by the Distributor with the Return Authorization Number affixed to the outside of the package. All returns must be in their original, resalable condition or else the return will not be processed.

Customer Service hours of operation are 8:00 a.m. - 6:00 p.m. PST, Monday through Friday, and 9:00 a.m. - 3:00 p.m. PST on Saturday.

Sales & Use Taxes

Many states, county and local governments, based on suggested retail prices, levy Sales & Use Taxes. All products and sales aids are subject to a sales tax payable at the time of purchase. These taxes are collected on the retail price by the Company and paid to the appropriate agencies.

Sales Aids and Literature as Inventory

Although not mandatory, a Distributor should carry a sufficient inventory of supplies, such as brochures, order forms and sales aids to meet the needs of their organization.

Seventy (70%) Percent Rule

The Program is built upon retail sales of products to the consumer. It is Company policy to strictly prohibit the purchase of products solely for the purpose of qualifying for commissions or bonuses. Distributors shall personally sell, consume, or use in business building at least seventy percent (70%) of the products from every order placed with the Company prior to placing another order. Distributors shall provide the Company with proof and validation of such uses to the Company's satisfaction if required by the Company or by any regulatory agency. Violation of the Seventy Percent (70%) Rule could cause forfeiture of any commission or bonuses for those otherwise qualified or suspension or termination of the Agreement.

Severability

The provisions of the Agreement are severable, and in the event that any provision is declared invalid, the Agreement shall be interpreted as if such invalid provision were not contained herein.

Shipping

All orders must be sent to a physical street address. PO Box numbers, general delivery or COD orders will not be accepted. United States Priority Service is the usual form of shipment. The ordering Distributor or retail customer absorbs all shipping and handling costs. Products are not shipped until funds have cleared.

Sponsoring

The Company does not require Distributors to Sponsor. Any Associate who Sponsors a Distributor 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. Associate must have ongoing contact, communication and management of such 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, voicemail, email, training sessions, accompanying individuals to Company training and sharing genealogy information with those Sponsored. Associate should be able to provide evidence to the Company quarterly of ongoing fulfillment of Sponsor responsibilities.

Sponsoring forms an enforceable business relationship between two (2) Associates. The Company will use commercially reasonable efforts to help protect these relationships and cross-Sponsoring (i.e., trying to take another Sponsor's Members) in any form is a violation of these Policies & Procedures. Distributor understands that Company does not permit changing of Sponsors. Network Marketing is a business of creating relationships. Once a Distributor is Sponsored, the Company believes in maximum protection of that relationship.

Support Materials

All support materials and Company information will be available for print or download from www.efusjon.com. Tools, such as landing pages for use on social networking sites, may also be available at a minimal charge.

Telephone

Distributors may not answer their phone in any manner that would indicate to callers a reason to believe that they have reached the Company's corporate offices. In their initial greeting, a Distributor may not use the name of the Company or any of the Company's trademarks.

Telephone Directory

The approved telephone listing for all telephone publications is:

efusjon, Inc.
"Independent Contractor"
Name, Address, Phone number

Termination

The Agreement shall continue in effect between the parties hereto until either party terminates the Agreement, which termination shall be effective immediately upon delivery of notice to the other party (provided that Distributor shall concurrently deliver to his/her/its Sponsor a copy of any termination notice that he/she/it delivers to the Company). The Company shall pay Distributor for all amounts that Distributor has earned through the date of termination of the Agreement less offsets against amounts that Distributor owes to the Company, which amounts shall be due and payable to Distributor as and when they would normally become due and payable if the Agreement were not terminated. In the event that the Agreement is terminated, Distributor's sales organization may be immediately transferred to his/her/its first active upline distributor effective on the day immediately following the termination date or, in the Company's sole and absolute discretion, the Company may hold the position as a Company-owned administrative position. If the Company terminates the Agreement with respect to a Distributor, such Distributor will be eligible to reapply to the Program one (1) month after the date of termination. Any such terminated Distributor who re-enters the Program may not Sponsor any of his/her/its prior downline organization. Any such terminated Distributor who re-enters the Compensation Plan will be placed under the original Sponsor in the closest available position. The Company reserves the right to accept or reject for any reason in its sole and absolute discretion the Distributor Application of any former Distributor who seeks to reapply to become a Distributor.

Territories

The Company may, at its sole and absolute discretion, offer exclusive territorial rights to certain Distributors. Distributors may represent that exclusive territories are available under the Company marketing program in the Company's sole and absolute discretion.

Testimonial Release

In consideration of its possible use of your appearance, statements and/or materials supplied by you in written, spoken or visual form, the Company will have the right:

• To edit, broadcast and/or to print said material and the right to license others to use these rights.
• To use your name, likeness, voice, biographical information and the material supplied by you for proposed advertising, publicity and sales promotion.

The Company's use of your appearance, statements and/or material as described above will not violate the rights of any person or organization and will not incur any liability for payment to any person or entity. Said statements will be honest and truthful.

Training

An Associate who recruits other Distributors as part of their sales organization is required to ensure that the new Distributor is properly trained.

Transfer of a Distributorship

The Company discourages the sale of Distributorships and the transfer of partial interests in Distributorships.

If a Distributor wishes to sell, transfer, assign, encumber or otherwise dispose of all or any portion of his/her/its Distributorship, the Distributor must first obtain the Company's prior written approval to such sale, assignment, encumbrance or disposition, which the Company may grant, withhold, condition or delay as the Company may determine in its sole and absolute discretion. Prior to granting its approval, the Company must receive a fully completed and signed Distributor Application and Distributor Agreement (or a Distributor Business Transfer Form) from the proposed new owner. The proposed new owner must be able to fully function in a manner that enables them to conduct the Company business in accordance with the Agreement. If the Company does not approve the proposed new owner, the Distributor may not transfer the Distributor's organization to such proposed new owner and any such transfer will be null and void and will not be recognized by the Company). Upon the consummation of any sale, transfer, assignment, encumbrance or other disposition that is approved by the Company as described above, the transferring Distributor shall not be entitled to any further compensation with respect to his/her/its sales, downline organization or position in the Company Compensation Plan other than compensation that became due and payable prior to the effective date of the transfer, and all compensation arising out of such downline organization and position in the Company Compensation Plan from and after the effective date of the transfer shall be paid to the approved new owner. A Distributor who sold, transferred, assigned, encumbered or otherwise disposed of his/her/its Distributorship in compliance with these Policies & Procedures may not reapply to become a Distributor under another Sponsor until six (6) months have passed after such sale, transfer, assignment, encumbrance or disposition occurs, and the Company reserves the right to accept or reject such former Distributor's Application and Distributor Agreement in the Company's sole and absolute discretion..

In addition to the foregoing, a transfer of a Distributorship may result from the death or divorce of a Distributor, from a court order or from such other reasons as may arise from time to time. In these cases, certified documentation in the form of a court documents, Death Certificate or divorce decree, etc. must be provided before the Company will consent to the transfer. Delays in the probate process upon the death of a Member can result in the loss of compensation and/or position in the Company Compensation Plan (See the policy entitled "Inheritance").

The Company may require notarized documents before implementing any change in ownership of a Distributorship. Changes in ownership of a Distributorship, if approved, normally take about thirty (30) days for processing after the receipt of the request.

Unethical Activity

The Company will not tolerate activity that it considers unethical or unprofessional and reserves the right to intercede when it deems such behavior is evident and to take such remedial action as the Company determines in its sole and absolute discretion, including, without limitation, termination of the perpetrating Distributor's Agreement with the Company.

The Company reserves the right to use its sole judgment in deciding whether certain Distributor's activities are inappropriate. Examples of inappropriate activities include, without limitation:

• Promoting or selling other companies' products at any Company functions or use of the Company's forms, printed materials, promotional media or the Company's name, trademark, logos, prestige or drawing power in conjunction with or in support of any other activities.
• Using the Company genealogy reports for other than the Distributor's performance of services pursuant to this Agreement.
• Sponsoring or attempting to Sponsor or approaching another Distributor into another Direct Sales, Multi-Level Marketing and/or Network Marketing Company except for her/his personally Sponsored Distributors.
• Participating in any action that causes another Distributor to be Sponsored/recruited through someone else into another company.
• Making claims in violation of the Agreement (including, without limitation, these Policies & Procedures).
• aking false income projections.
• Writing bad checks and credit card charge-backs to the Company and/or other Distributors.
• Any conduct that discredits the Company, its products, its Distributors or violates the law.
• SPAM.
• Inappropriate use of the Internet.
• Violation of any other provision of the Agreement (including, without limitation, these Policies & Procedures).

Distributors are free to participate in other multilevel or network marketing business ventures. However, the Company has strong relationships with its Distributors, customers and business partners, and is using various marketing efforts to develop valuable relationships and goodwill with these Distributors, customers and business partners and others, all of which has been and is being accomplished through the expenditure of extensive time, effort and resources and which it wishes to maintain. In light of the foregoing, Distributor agrees that during the term of the Agreement, Distributors may not recruit other Company Distributors or customers for any other network marketing business. In addition, in light of the foregoing, for a period of six months after the cancellation of the Agreement for any reason, a former Distributor may not recruit any Company Distributor or customer for another network marketing business if that Distributor or customer was in the former Distributor's downline, or the former Distributor met, developed a relationship with, or gained knowledge of the Distributor or customer by virtue of their mutual participation in the Company.

Secondly, in light of the foregoing, Distributors are prohibited from recruiting other current Company Distributors into their downline that are not already positioned in their current downline.

The term "recruit" means actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way, either directly or through a third party, another Company Distributor or customer to enroll or participate in another matrix position multilevel marketing, network marketing or direct sales opportunity. This conduct constitutes recruiting even if the Distributor's actions are in response to an inquiry made by another Distributor or customer.

Use of Company Name, Logo

The Distributor may use the Company name or logo in directory listings and on business cards or letterhead, provided there also prominently appear thereon the words "Independent Distributor." No other use of the Company name or logo is permitted without prior written consent of the Company. The Company reserves the right to require the Distributor to cease using the Company name or logo in the Company's sole and absolute discretion.

The Company's name may NOT be used with the name of ANY OTHER COMPANY OR BUSINESS in any advertisement, business card, letterhead, etc.

Violations of Agreement

Distributor understands that any violation of these Policies & Procedures jeopardizes the integrity and standing of all Distributors.

Violations or infractions of any part of the Agreement (including, without limitation, these Policies and Procedures or the Compensation and Bonus Plans) should be reported in writing immediately to the Company indicating all the pertinent facts (date, time, place, names of all persons involved, etc.). After receiving a signed complaint, the Company will assign a person or persons to investigate the matter and take appropriate action, including termination of the Distributor's Agreement, if necessary.

The Company will not tolerate activity that is unethical. Even though the line between aggressive marketing efforts and unethical behavior can be vague, the Company reserves the right to intercede when unethical behavior is evident, to determine whether an unethical practice has been committed and to determine the appropriate remedial action to be taken.

Conclusion

The Company trusts that with these Policies & Procedures, the Distributor will act in the best interest of all. That the Distributor will conduct his/her/its business in a manner that reflects the highest standards of honesty, integrity and responsibility toward the Company, customers, other Distributors, the Network Marketing industry and the public, observing the spirit as well as the letter of the law and the Agreement.