MasterMind To Personal Power. Statement of Policies and Procedures

TABLE OF CONTENTS

SECTION 1 - INTRODUCTION

1.1 - POLICIES AND COMPENSATION PLAN INCORPORATED INTO FACILITATOR AGREEMENT
1.2 - PURPOSE OF POLICIES
1.3 - CHANGES TO THE AGREEMENT
1.4 - DELAYS
1.5 - POLICIES AND PROVISIONS SEVERABLE
1.6 – WAIVER

SECTION 2 - BECOMING A FACILITATOR
2.1 - REQUIREMENTS TO BECOME A FACILITATOR
2.2 - FACILITATOR BENEFITS
2.3 - TERM AND RENEWAL OF YOUR MMTPP BUSINESS

SECTION 3 - OPERATING A MMTPP BUSINESS
3.1 - ADHERENCE TO THE MMTPP MARKETING AND COMPENSATION PLAN
3.2 - ADVERTISING
3.2.1 - GENERAL
3.2.2 - FACILITATOR WEB SITES
3.2.3 - ONLINE AUCTIONS AND OTHER ONLINE FORUMS
3.2.4 - DOMAIN NAMES
3.2.5 - TRADEMARKS AND COPYRIGHTS
3.2.6 - MEDIA AND MEDIA INQUIRIES
3.2.7 - UNSOLICITED EMAIL
3.2.8 - UNSOLICITED FAXES
3.2.9 - BUSINESS CARDS, TELEPHONE BOOK LISTINGS
3.3 - BONUS BUYING PROHIBITED
3.4 - BUSINESS ENTITIES
3.4.1 - CHANGES TO A BUSINESS ENTITY
3.5 - CHANGE OF SPONSOR
3.5.1 - MISPLACEMENT
3.5.2 - CANCELLATION AND RE-APPLICATION
3.5.3 - WAIVER OF CLAIMS FOR UNAUTHORIZED ORGANIZATION CHANGES
3.6 - UNAUTHORIZED CLAIMS AND ACTION
3.6.1 - INDEMNIFICATION
3.6.2 - PRODUCT CLAIMS
3.6.3 - INCOME CLAIMS
3.6.4 - INCOME DISCLOSURE STATEMENT (“IDS”)
3.7 - COMMERCIAL OUTLETS
3.8 - TRADE SHOWS, EXPOSITIONS AND OTHER SALES FORUMS
3.9 - CONFLICTS OF INTEREST
3.9.1 - NON SOLICITATION
3.9.2 - SALE OF COMPETING GOODS OR SERVICES
3.9.3 - FACILITATOR PARTICIPATION IN OTHER DIRECT SELLING PROGRAMS
3.9.4 - DOWNLINE ACTIVITY (GENEALOGY) REPORTS
3.10 - TARGETING OTHER DIRECT SELLERS
3.11 - CROSS-SPONSORING
3.12 - ERRORS OR QUESTIONS
3.13 - GOVERNMENTAL APPROVAL OR ENDORSEMENT
3.14 - HOLDING APPLICATIONS OR ORDERS
3.15 - IDENTIFICATION
3.16 - INCOME TAXES
3.16.1 - NON-U.S. CITIZENS FACILITATORS
3.17 - INDEPENDENT CONTRACTOR STATUS
3.18 - INSURANCE
3.19 - INTERNATIONAL MARKETING
3.20 - INVENTORY LOADING
3.21 - ADHERENCE TO LAWS AND ORDINANCES
3.22 - MINORS
3.23 - ONE MMTPP BUSINESS PER FACILITATOR AND PER HOUSEHOLD
3.23.1 - SPOUSES WITH SEPARATE BUSINESSES PRE-DATING August 1, 2010
3.23.2 - ADULT CHILDREN IN THE HOUSEHOLD
3.24 - ACTIONS OF HOUSEHOLD MEMBERS OR AFFILIATED INDIVIDUALS
3.25 - REQUESTS FOR RECORDS
3.26 - SALE, TRANSFER OR ASSIGNMENT OF MMTPP BUSINESS
3.27 - SEPARATION OF A MMTPP BUSINESS
3.28 - SPONSORING
3.29 - SUCCESSION
3.29.1 - TRANSFER UPON DEATH OF A FACILITATOR
3.29.2 - TRANSFER UPON INCAPACITATION OF A FACILITATOR
3.30 - TELEMARKETING TECHNIQUES

SECTION 4 - RESPONSIBILITIES OF FACILITATORS
4.1 - CHANGE OF ADDRESS, TELEPHONE, AND E-MAIL ADDRESSES
4.2 - CONTINUING DEVELOPMENT OBLIGATIONS
4.2.1 - ONGOING TRAINING
4.2.2 - INCREASED TRAINING RESPONSIBILITIES
4.2.3 - ONGOING SALES RESPONSIBILITIES
4.3 - NONDISPARAGEMENT
4.4 - PROVIDING DOCUMENTATION TO APPLICANTS
4.5 - REPORTING POLICY VIOLATION

SECTION 5 - SALES REQUIREMENTS
5.1 - PRODUCT SALES
5.2 - NO TERRITORY RESTRICTIONS
5.3 - SALES RECEIPTS

SECTION 6 - BONUSES AND COMMISSIONS
6.1 - BONUS AND COMMISSION QUALIFICATIONS
6.2 - ADJUSTMENT TO BONUSES AND COMMISSIONS
6.2.1 - ADJUSTMENTS FOR RETURNED PRODUCTS 6.3 – REPORTS

SECTION 7 - PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASE
7.1 - PRODUCT GUARANTEE
7.2 - RETURNS BY RETAIL CUSTOMERS
7.3 - RIGHT OF RESCISSION
7.4 - RETURN OF INVENTORY AND SALES AIDS BY FACILITATORS UPON CANCELLATION
7.4.1 - MONTANA RESIDENTS
7.5 - PROCEDURES FOR ALL RETURNS

SECTION 8 - DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS
8.1 - DISCIPLINARY SANCTIONS
8.2 - GRIEVANCES AND COMPLAINTS
8.3 - MEDIATION
8.4 - ARBITRATION
8.5 - GOVERNING LAW, JURISDICTION AND VENUE

SECTION 9 - PAYMENT AND SHIPPING
9.1 - RETURNED CHECKS
9.2 - SALES TAXES

SECTION 10 - INACTIVITY, RECLASSIFICATION, AND CANCELLATION
10.1 - EFFECT OF CANCELLATION
10.2 - CANCELLATION DUE TO INACTIVITY
10.2.1 - RECLASSIFICATION FOLLOWING CANCELLATION DUE TO INACTIVITY
10.4 - VOLUNTARY CANCELLATION
10.5 - NON-RENEWAL

SECTION 11 – DEFINITIONS

SECTION 1 - INTRODUCTION

1.1 - Policies and Compensation Plan Incorporated into Facilitator Agreement
These Policies and Procedures, in their present form and as amended at the sole discretion of MasterMind To Personal Power, Inc. (hereafter “MMTPP” or the “Company”), are incorporated into, and form an integral part of, the MMTPP Facilitator Agreement. Throughout these Policies, when the term “Agreement” is used, it collectively refers to the MMTPP Facilitator Application and Agreement, these Policies and Procedures, the MMTPP Marketing and Compensation Plan, and the MMTPP Business Entity Application (if applicable). These documents are incorporated by reference into the MMTPP Facilitator Agreement (all in their current form and as amended by MMTPP). It is the responsibility of each Facilitator to read, understand, adhere to, and ensure that he or she is aware of and operating under the most current version of these Policies and Procedures. When sponsoring or enrolling a new Facilitator, it is the responsibility of the sponsoring Facilitator to ensure that the applicant is provided with, or has online access to, the most current version of these Policies and Procedures and the MMTPP Marketing and Compensation Plan prior to his or her execution of the Facilitator Agreement.

1.2 - Purpose of Policies
MMTPP is a direct sales company that markets its products and services through Independent Facilitators. It is important to understand that your success and the success of your fellow Facilitators depends on the integrity of the men and women who market our products and services. To clearly define the relationship that exists between Facilitators and MMTPP, and to explicitly set a standard for acceptable business conduct, MMTPP has established the Agreement. MMTPP Facilitators are required to comply with all of the Terms and Conditions set forth in the Agreement, as well as all federal, state, and local laws governing their MMTPP business and their conduct. Because you may be unfamiliar with many of these standards of practice, it is very important that you read and abide by the Agreement. Please review the information in this manual carefully. It explains and governs the relationship between you, as an independent contractor and the Company. If you have any questions regarding any policy or rule, do not hesitate to seek an answer from MMTPP.

1.3 - Changes to the Agreement
Because federal, state, and local laws, as well as the business environment, periodically change, MMTPP reserves the right to amend the Agreement and its prices in its sole and absolute discretion. By signing the Facilitator Agreement, a Facilitator agrees to abide by all amendments or modifications that MMTPP elects to make. Amendments shall be effective 30 days after publication of notice that the Agreement has been modified. Notification of amendments shall be published by one or more of the following methods: (1) posting on the Company’s official web site; (2) electronic mail (e-mail); (3) inclusion in Company periodicals; (4) inclusion in checks; or (5) special mailings. The continuation of a Facilitator’s MMTPP business or a Facilitator’s acceptance of bonuses or commissions constitutes acceptance of any and all amendments.

1.4 - Delays
MMTPP shall not be responsible for delays or failures in performance of its obligations when performance is made commercially impracticable due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, riot, war, fire, death, curtailment of a party’s source of supply, or government decrees or orders.

1.5 - Policies and Provisions Severable
If any provision of the Agreement, in its current form or as may be amended, is found to be invalid, or unenforceable for any reason, only the invalid portion(s) of the provision shall be severed and the remaining terms and provisions shall remain in full force and effect. The severed provision, or portion thereof, shall be reformed to reflect the purpose of the provision as closely as possible.

1.6 - Waiver
The Company never gives up its right to insist on compliance with the Agreement and with the applicable laws governing the conduct of a business. No failure of MMTPP to exercise any right or power under the Agreement or to insist upon strict compliance by a Facilitator with any obligation or provision of the Agreement, and no custom or practice of the parties at variance with the terms of the Agreement, shall constitute a waiver of MMTPP’s right to demand exact compliance with the Agreement. Waiver by MMTPP can be effectuated only in writing by an authorized officer of the Company. MMTPP’s waiver of any particular breach by a Facilitator shall not affect or impair MMTPP’s rights with respect to any subsequent breach, nor shall it affect in any way the rights or obligations of any other Facilitator. Nor shall any delay or omission by MMTPP to exercise any right arising from a breach affect or impair MMTPP’s rights as to that or any subsequent breach. The existence of any claim or cause of action of a Facilitator against MMTPP shall not constitute a defense to MMTPP’s enforcement of any term or provision of the Agreement.

SECTION 2 - BECOMING A FACILITATOR

2.1 - Requirements to Become a Facilitator
To become a MMTPP Facilitator, each applicant must:
• Be of the age of majority in his or her state of residence or country of residence;
• Reside in the United States or U.S. Territories or country that MMTPP has officially announced is open for business;
• Have a valid Social Security or Federal Tax ID number or valid ID for country of residence;
• Submit a properly completed Facilitator Application and Agreement to MMTPP either in hard copy or online format;
• Facilitators enrolling as a business entity must complete and submit a business entity Application and Agreement.

2.2 - Facilitator Benefits
Once a Facilitator Application and Agreement has been accepted by MMTPP, the benefits of the Marketing and Compensation Plan and the Facilitator Agreement are available to the new Facilitator. These benefits include the right to:
• Participate in the MMTPP Marketing and Compensation Plan (receive commissions, if eligible);
• Sponsor other individuals as Facilitators into the MMTPP business and thereby, build a marketing organization and progress through the MMTPP Marketing and Compensation Plan;
• Receive periodic MMTPP literature and other MMTPP communications;
• Participate in MMTPP-sponsored support, service, training, motivational and recognition functions, upon payment of appropriate charges, if applicable; and;
• Participate in promotional and incentive contests and programs sponsored by MMTPP for its Facilitators.

2.3 - Term and Renewal of Your MMTPP Business
The term of the Facilitator Agreement is one year from the date of its acceptance by MMTPP (subject to reclassification for inactivity after six months pursuant to Section 10.2.) Facilitators must renew their Facilitator Agreement each year by paying an annual renewal fee of $25.00 on or before the anniversary date of their Facilitator Agreement. If the renewal fee is not paid within 30 days after the expiration of the current term of the Facilitator Agreement, the Facilitator Agreement will be canceled. Facilitators may elect to utilize the Automatic Renewal Program (“ARP”). Under the ARP, the renewal fee will be charged to the Facilitator’s credit card on file with the Company.

SECTION 3 - OPERATING A MMTPP BUSINESS

3.1 - Adherence to the MMTPP Marketing and Compensation Plan
Facilitators must adhere to the terms of the MMTPP Marketing and Compensation Plan as set forth in official MMTPP literature. Facilitators shall not offer the MMTPP opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically set forth in official MMTPP literature. Facilitators shall not require or encourage other current or prospective Customers or Facilitators to participate in MMTPP in any manner that varies from the program as set forth in official MMTPP literature. Facilitators shall not require or encourage other current or prospective Customers or Facilitators to execute any agreement or contract other than official MMTPP agreements and contracts in order to become a MMTPP Facilitator. Similarly, Facilitators shall not require or encourage other current or prospective Customers or Facilitators to make any purchase from, or payment to, any individual or other entity to participate in the MMTPP Marketing and Compensation Plan other than those purchases or payments identified as recommended or required in official MMTPP literature.

3.2 - Advertising
3.2.1 - General
All Facilitators shall safeguard and promote the good reputation of MMTPP and its products. The marketing and promotion of MMTPP, the MMTPP opportunity, the Marketing and Compensation Plan, and MMTPP products shall be consistent with the public interest, and must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices. To promote both the products and services, and the tremendous opportunity MMTPP offers, Facilitators must use the sales tools and support materials produced by MMTPP. MMTPP has carefully designed its products, product labels, Marketing and Compensation Plan, and promotional materials to ensure that each aspect of MMTPP is fair, truthful, substantiated, and complies with the vast and complex legal requirements of federal and state laws. If MMTPP Facilitators develop their own sales tools and promotional materials, or to promote MMTPP’s products or the MMTPP opportunity on blog sites, social networks, or other forums, notwithstanding their integrity and good intentions, there is a considerable likelihood that they would unintentionally violate any number of statutes or regulations affecting a MMTPP business. These violations, although they may be relatively few in number, would jeopardize the MMTPP opportunity for all Facilitators. Accordingly, Facilitators must not produce their own literature, advertisements, sales tools and promotional materials, or Internet web pages.

3.2.2 - Facilitator Web Sites
If a Facilitator desires to utilize an Internet web page to promote his or her business, he or she must use an official MMTPP replicated website. No websites other than MMTPP provided replicated websites are permitted. Team Sites used for information and training are exempt.

3.2.3 - Online Auctions and other Online Forums
Facilitators may not sell MMTPP’s products through online auction, barter, or brokerage sites, including but not limited to Craig’s List and ebay.

3.2.4 - Domain Names
Facilitators may not use or attempt to register any of MMTPP’s trade names, trademarks, service names, service marks, product names, the Company’s name, or any derivative thereof, for any Internet domain name, URL or email address.

3.2.5 - Trademarks and Copyrights
MMTPP will not allow the use of its trade names, trademarks, designs, or symbols by any person, including MMTPP Facilitators, without its prior, written permission. Facilitators may not produce for sale or distribution any recorded Company events and speeches without written permission from MMTPP management nor may Facilitators reproduce for sale or for personal use any recording of Company produced audio or video tape presentations.

3.2.6 - Media and Media Inquiries
Facilitators must not attempt to respond to media inquiries regarding MMTPP, its products or services, or their independent MMTPP business. All inquiries by any type of media must be immediately referred to MMTPP’s Compliance Department. This policy is designed to assure that accurate and consistent information is provided to the public as well as a proper public image.

3.2.7 - Unsolicited Email
MMTPP does not permit Facilitators to send unsolicited commercial emails unless such emails strictly comply with applicable laws and regulations including, without limitation, the federal CAN SPAM Act. Any email sent by a Facilitator that promotes MMTPP, the MMTPP opportunity, or MMTPP products and services must comply with the following:
i. There must be a functioning return email address to the sender.
ii. There must be a notice in the email that advises the recipient that he or she may reply to the email, via the (functioning “opt-out” notice).
iii. The email must include the Facilitator’s physical mailing address.
iv. The email must clearly and conspicuously disclose that the message is an advertisement or solicitation.
v. The use of deceptive subject lines and/or false header information is prohibited.
vi. All opt-out requests, whether received by email or regular mail, must be honored. MMTPP may periodically send commercial emails on behalf of Facilitators. By entering into the Facilitator Agreement, Facilitator agrees that the Company may send such emails and that the Facilitator’s physical and email addresses will be included in such emails as outlined above. Facilitators shall honor opt-out requests generated as a result of such emails sent by the Company.

3.2.8 - Unsolicited Faxes
Except as provided in this section, Facilitators may not use or transmit unsolicited faxes or use an automatic telephone dialing system relative to the operation of their MMTPP businesses. The term “automatic telephone dialing system” means equipment which has the capacity to: (a) store or produce telephone numbers to be called, using a random or sequential number generator; and (b) to dial such numbers. The terms “unsolicited faxes” means the transmission via telephone facsimile of any material or information advertising or promoting MMTPP, its products, its compensation plan or any other aspect of the company which is transmitted to any person, except that these terms do not include a fax or e-mail: (a) to any person with that person’s prior express invitation or permission; or (b) to any person with whom the Facilitator has an established business or personal relationship. The term “established business or personal relationship” means a prior or existing relationship formed by a voluntary two way communication between a Facilitator and a person, on the basis of: (a) an inquiry, application, purchase or transaction by the person regarding products offered by such Facilitator; or (b) a personal or familial relationship, which relationship has not been previously terminated by either party.

3.2.9 - Business Cards, Telephone Book Listings
The name of MMTPP and other names as may be adopted by MMTPP are proprietary trade names, trademarks and service marks of MMTPP. As such, these marks are of great value to MMTPP and are supplied to Facilitators for their use only in an expressly authorized manner. Use of MMTPP name on any item not produced by the Company is prohibited except as follows: Facilitator’s Name Independent MMTPP Facilitator. All Facilitators may list themselves as an “Independent MMTPP Facilitator” in the white or yellow pages of the telephone directory under their own name. No Facilitator may place telephone directory display ads using MMTPP’s name or logo. Facilitators may not answer the telephone by saying “MMTPP”, “MMTPP Incorporated”, or in any other manner that would lead the caller to believe that he or she has reached corporate offices of MMTPP.

3.3 - Bonus Buying Prohibited
Bonus buying is strictly and absolutely prohibited. “Bonus buying” includes: (a) the enrollment of individuals or entities without the knowledge of and/or execution of an Independent Facilitator Application and Agreement by such individuals or entities; (b) the fraudulent enrollment of an individual or entity as a Facilitator or Customer; (c) the enrollment or attempted enrollment of non-existent individuals or entities as Facilitators or Customers (“phantoms”); (d) Purchasing MMTPP products or services on behalf of another Facilitator or Customer, or under another Facilitator’s or Customer’s I.D. number, to qualify for commissions or bonuses; (e) purchasing excessive amounts of goods or services that cannot reasonably be used or resold in a month; and/or (f) any other mechanism or artifice to qualify for rank advancement, incentives, prizes, commissions or bonuses that is not driven by bona fide product or service purchases by end user consumers.

3.4 - Business Entities
A corporation, partnership or trust (collectively referred to in this section as a “Business Entity”) may apply to be a MMTPP Facilitator by submitting a properly completed Business Entity Application and Agreement. Business Entity Applications must be submitted in hard copy and must bear the original signature of all partners, members, shareholders, or other individuals with any ownership interest in the MMTPP business; business entities may not enroll entirely online. A MMTPP business may change its status under the same sponsor from an individual to a partnership, corporation or trust, or from one type of entity to another. There is a $25.00 fee for each change requested, which must be included with the written request and the completed Facilitator Application and Agreement. The Business Entity Registration form must be signed by all of the shareholders, partners or trustees. Members of the entity are jointly and severally liable for any indebtedness or other obligation to MMTPP. To prevent the circumvention of Section 3.26 (regarding transfers and assignments of MMTPP business), if an additional partner, shareholder, member, or other business entity affiliate is added to a business entity, the original applicant must remain as a party to the original Facilitator Application and Agreement. If the original Facilitator wants to terminate his or her relationship with the Company, he or she must transfer or assign his or her business in accordance with Section 3.26. If this process is not followed, the business shall be canceled upon the withdrawal of the original Facilitator. All bonus and commission checks will be sent to the address of record of the original Facilitator. Please note that the modifications permitted within the scope of this paragraph do not include a change of sponsorship. Changes of sponsorship are addressed in Section 3.5 below. There is a $25.00 fee for each change requested, which must be included with the written request and the completed Facilitator Application and Agreement. MMTPP may, at its discretion, require notarized documents before implementing any changes to a MMTPP business. Please allow thirty (30) days after the receipt of the request by MMTPP for processing.

3.4.1 - Changes to a Business Entity
Each Facilitator must immediately notify MMTPP of all changes to type of business entity they utilize in operating their businesses and the addition or removal of business Facilitators. Changes shall be processed only once per year. All changes must be submitted by November 30 to become effective on January 1 of the following year.

3.5 - Change of Sponsor
To protect the integrity of all marketing organizations and safeguard the hard work of all Facilitators, MMTPP strongly discourages changes in sponsorship. Maintaining the integrity of sponsorship is critical for the success of every Facilitator and marketing organization. Accordingly, the transfer of a MMTPP business from one sponsor to another is rarely permitted. Requests for change of sponsorship must be submitted in writing to the Facilitator Services Department, and must include the reason for the transfer. Transfers will only be considered in the following three circumstances:

3.5.1 - Misplacement
In cases in which the new Facilitator is sponsored by someone other than the individual he or she was led to believe would be his or her Sponsor, a Facilitator may request that he or she be transferred to another organization with his or her entire marketing organization intact. Requests for transfer under this policy will be evaluated on a case-by-case basis and must be made by 5:00 pm, Pacific Time, on or before the third business day following the date of the application. The request must be submitted to MMTPP on the 72-Hour Correction Request Form, available at www.MMTPP.com/forms. The Facilitator requesting the change has the burden of proving that he or she was placed beneath the wrong sponsor. It is up to MMTPP’s discretion whether the requested change will be implemented.

3.5.2 - Cancellation and Re-Application
A Facilitator may legitimately change organizations by voluntarily canceling his or her MMTPP business and remaining inactive (i.e., no purchases of MMTPP products for resale, no sales of MMTPP products, no sponsoring, no attendance at any MMTPP functions, participation in any other form of Facilitator activity, or operation of any other MMTPP business) for six (6) full calendar months. Following the six month period of inactivity, the former Facilitator may reapply under a new sponsor, however, the former Facilitator’s downline will remain in their original line of sponsorship.

3.5.3 - Waiver of Claims for Unauthorized Organization Changes In cases wherein the appropriate sponsorship change procedures have not been followed, and a downline organization has been developed in the second business developed by a Facilitator, MMTPP reserves the sole and exclusive right to determine the final disposition of the downline organization. Resolving conflicts over the proper placement of a downline that has developed under an organization that has improperly switched sponsors is often extremely difficult. Therefore, FACILITATORS WAIVE ANY AND ALL CLAIMS AGAINST MMTPP, ITS OFFICERS, DIRECTORS, OWNERS, AGENTS AND EMPLOYEES THAT RELATE TO OR ARISE FROM MMTPP’s DECISION REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION THAT DEVELOPS BELOW AN ORGANIZATION THAT HAS IMPROPERLY CHANGED LINES OF SPONSORSHIP.

3.6 - Unauthorized Claims and Action

3.6.1 - Indemnification
A Facilitator is fully responsible for all of his or her verbal and written statements made regarding MMTPP products, services, and the Marketing and Compensation Plan which are not expressly contained in official MMTPP materials. Facilitators agree to indemnify MMTPP and MMTPP’s directors, officers, employees, and agents, and hold them harmless from any and all liability including judgments, civil penalties, refunds, attorney fees, court costs, or lost business incurred by MMTPP as a result of the Facilitator’s unauthorized representations or actions. This provision shall survive the termination of the Facilitator Agreement.

3.6.2 - Product Claims
No claims (which include personal testimonials) as to therapeutic, curative or beneficial properties of any products offered by MMTPP may be made except those contained in official MMTPP literature. In particular, no Facilitator may make any claim that MMTPP products or services are useful in the cure, treatment, diagnosis, mitigation or prevention of any diseases. Such statements can be perceived as medical or drug claims. Not only do such claims violate MMTPP policies, but they potentially violate federal and state laws and regulations, including the federal Food, Drug, and Cosmetic Act and Federal Trade Commission Act.

3.6.3 - Income Claims
In their enthusiasm to enroll prospective Facilitators, some Facilitators are occasionally tempted to make income claims or earnings representations to demonstrate the inherent power of network marketing. This is counterproductive because new Facilitators may become disappointed very quickly if their results are not as extensive or as rapid as the results others have achieved. At MMTPP, we firmly believe that the MMTPP income potential is great enough to be highly attractive, without reporting the earnings of others. Moreover, the Federal Trade Commission and several states have laws or regulations that regulate or even prohibit certain types of income claims and testimonials made by persons engaged in network marketing. While Facilitators may believe it beneficial to provide copies of checks, or to disclose the earnings of themselves or others, such approaches have legal consequences that can negatively impact MMTPP as well as the Facilitator making the claim unless appropriate disclosures required by law are also made contemporaneously with the income claim or earnings representation. Because MMTPP Facilitators do not have the data necessary to comply with the legal requirements for making income claims, a Facilitator, when presenting or discussing the MMTPP opportunity or Marketing and Compensation Plan to a prospective Facilitator, may not make income projections, income claims, or disclose his or her MMTPP income (including the showing of checks, copies of checks, bank statements, or tax records).

3.7 - Commercial Outlets
Facilitators may not sell MMTPP products or services from a commercial outlet, nor may Facilitators display or sell MMTPP products in any retail or service establishments where competitive products are displayed or sold.

3.8 - Trade Shows, Expositions and Other Sales Forums
Facilitators may display and/or sell MMTPP products at trade shows and professional expositions. Before submitting a deposit to the event promoter, Facilitators must contact the Facilitator Services department in writing for conditional approval, as MMTPP’s policy is to authorize only one MMTPP business per event. Final approval will be granted to the first Facilitator who submits an official advertisement of the event, a copy of the contract signed by both the Facilitator and the event official, and a receipt indicating that a deposit for the booth has been paid. Approval is given only for the event specified. Any requests to participate in future events must again be submitted to the Facilitator Services Department. MMTPP 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 MMTPP opportunity. Approval will not be given for swap meets, garage sales, flea markets or farmer’s markets as these events are not conducive to the professional image MMTPP wishes to portray.

3.9 - Conflicts of Interest

3.9.1 - Nonsolicitation
MMTPP Facilitators are free to participate in other multilevel or network marketing business ventures or marketing opportunities (collectively “network marketing”). However, during the term of this Agreement, Facilitators may not directly or indirectly recruit other MMTPP Facilitators or Customers for any other network marketing business. Following the cancellation of a Facilitator’s Independent Facilitator Agreement, and for a period of six calendar months thereafter, with the exception of those Facilitators who are personally sponsored by the former Facilitator, a former Facilitator may not Recruit any MMTPP Facilitator or Customer for another network marketing business. Facilitators and the Company recognize that because network marketing is conducted through networks of independent contractors dispersed across the entire United States and internationally, and business is commonly conducted via the internet and telephone, an effort to narrowly limit the geographic scope of this non-solicitation provision would render it wholly ineffective. Therefore, Facilitators and MMTPP agree that this nonsolicitation provision shall apply to all markets in which MMTPP conducts business. The term “Recruit” means the actual or attempted sponsorship, solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another Facilitator or Customer to enroll or participate in another multilevel marketing, network marketing or direct sales opportunity.

3.9.2 - Sale of Competing Goods or Services
Facilitators must not sell, or attempt to sell, any competing non-MMTPP programs, products or services to MMTPP Customers or Facilitators. Any program, product or services in the same generic categories as MMTPP products or services is deemed to be competing, regardless of differences in cost, quality or other distinguishing factors.

3.9.3 - Facilitator Participation in Other Direct Selling Programs
If a Facilitator is engaged in other non-MMTPP direct selling programs, it is the responsibility of the Facilitator to ensure that his or her MMTPP business is operated entirely separate and apart from any other program. To this end, the following must be adhered to:
• Facilitators shall not display MMTPP promotional material, sales aids, products or services with or in the same location
• Facilitators shall not offer the MMTPP opportunity, products or services to prospective or existing Customers or Facilitators in conjunction with any non-MMTPP program, opportunity, product or service.
• Facilitators may not offer any non-MMTPP opportunity, products, services or opportunity at any MMTPP-related meeting, hours before or after the MMTPP meeting,
• MMTPP Facilitators cannot serve as a supplier, vendor or consultant for goods and services to MMTPP International.
• MMTPP Facilitators understand that MMTPP Corporate decisions will be made by majority and no one owner or manager can make Corporate decisions on their own.

3.9.4 - Downline Activity (Genealogy) Reports
MMTPP may, in its discretion, provide Facilitators with a downline genealogy report in conjunction with a Facilitator’s replicated website. Access to a genealogy report is a privilege, and not a right. MMTPP reserves the right to deny Facilitators’ access to a genealogy report at its sole discretion. All Downline Activity Reports and the information contained therein are confidential and constitute proprietary information and business trade secrets belonging to MMTPP. Downline Activity Reports are provided to Facilitators in strictest confidence and are made available to Facilitators for the sole purpose of assisting Facilitators in working with their respective Downline Organizations in the development of their MMTPP business. Facilitators should use their Downline Activity Reports to assist, motivate, and train their downline Facilitators. The Facilitator and MMTPP agree that, but for this agreement of confidentiality and nondisclosure, MMTPP would not provide Downline Activity Reports to the Facilitator. Therefore, if a Downline Activity Report is provided to a Facilitator, the Facilitator shall not, on his or her own behalf, or on behalf of any other person, partnership, association, corporation or other entity:
• Directly or indirectly disclose any information contained in any Downline Activity Report to any third party;
• Directly or indirectly disclose the password or other access code to his or her Downline Activity Report;
• Use the information to compete with MMTPP or for any purpose other than promoting his or her MMTPP business;
• Recruit or solicit any Facilitator or Customer of MMTPP listed on any report, or in any manner attempt to influence or
• Use or disclose to any person, partnership, association, corporation, or other entity any information contained in any
• Upon demand by the Company, any current or former Facilitator will return the original and all copies of the Downline Activity report.

3.10 - Targeting Other Direct Sellers
MMTPP does not condone Facilitators specifically or consciously targeting the sales force of another direct sales company to sell MMTPP products or to become Facilitators for MMTPP, nor does MMTPP condone Facilitators solicitation or enticement of members of the sales force of another direct sales company to violate the terms of their contract with such other company. Should Facilitators engage in such activity, they bear the risk of being sued by the other direct sales company. If any lawsuit, arbitration or mediation is brought against a Facilitator alleging that he or she engaged in inappropriate recruiting activity of its sales force or customers, MMTPP will not pay any of Facilitator’s defense costs or legal fees, nor will MMTPP indemnify the Facilitator for any judgment, award, or settlement.

3.11 - Cross-Sponsoring
Actual or attempted cross sponsoring is strictly prohibited. “Cross sponsoring” is defined as the enrollment of an individual who or entity that already has a current Customer or Facilitator Agreement on file with MMTPP, or who has had such an agreement within the preceding six calendar months, within a different line of sponsorship. The use of a spouse’s or relative’s name, trade names, DBAs, assumed names, corporations, partnerships, trusts, federal ID numbers, fictitious ID numbers, any straw-man or other artifice to circumvent this policy is prohibited. Facilitators shall not demean, discredit or defame other MMTPP Facilitators in an attempt to entice another Facilitator to become part of the first Facilitator’s marketing organization. This policy shall not prohibit the transfer of a MMTPP business in accordance with Section 3.5. If Cross Sponsoring is discovered, it must be brought to the Company’s attention immediately. MMTPP may take disciplinary action against the Facilitator that changed organizations and/or those Facilitators who encouraged or participated in the Cross Sponsoring. MMTPP may also move all or part of the offending Facilitator’s downline to his or her original downline organization if the Company deems it equitable and feasible to do so. However, MMTPP is under no obligation to move the Cross Sponsored Facilitator’s downline organization, and the ultimate disposition of the organization remains within the sole discretion of MMTPP. Facilitators waive all claims and causes of action against MMTPP, its officers, directors, owners, agents, and employees arising from or relating to the disposition of the Cross Sponsored Facilitator’s downline organization.

3.12 - Errors or Questions
If a Facilitator has questions about or believes any errors have been made regarding commissions, bonuses, Downline Activity Reports, or charges, the Facilitator must notify MMTPP in writing within 60 days of the date of the purported error or incident in question. MMTPP will not be responsible for any errors, omissions or problems not reported to the Company within 60 days.

3.13 - Governmental Approval or Endorsement
Neither federal nor state regulatory agencies or officials approve or endorse any direct selling or network marketing companies or programs. Therefore, Facilitators shall not represent or imply that MMTPP or its Marketing and Compensation Plan have been “approved,” “endorsed” or otherwise sanctioned by any government agency.

3.14 - Holding Applications or Orders
Facilitators must not manipulate enrollments of new applicants and purchases of products. All Facilitator Applications and Agreements, and product orders must be sent to MMTPP within 72 hours from the time they are signed by a Facilitator or placed by a customer, respectively.

3.15 - Identification
All Facilitators are required to provide their Social Security Number, or a Federal Employer Identification Number to MMTPP on the Facilitator Application and Agreement. Upon enrollment, the Company will provide a unique Facilitator Identification Number to the Facilitator by which he or she will be identified. This number will be used to place orders, sponsor new Facilitators and track commissions and bonuses.

3.16 - Income Taxes
Each Facilitator is responsible for paying local, state, and federal taxes on any income generated as an Independent Facilitator. If a MMTPP business is tax exempt, the Federal tax identification number must be provided to MMTPP. Every year, MMTPP will provide an IRS Form 1099 MISC (Nonemployee 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 the previous calendar year in excess of $5,000. MMTPP reserves the right to make appropriate withholdings from any Facilitator’s income if they provide an inaccurate social security number or Federal Tax Identification number.

3.16.1 - Non-U.S. Citizens Facilitators
If a Facilitator is not a United States citizen, the Facilitator must submit a form W8-BIN. Otherwise MMTPP will withhold the minimum amount allowed under the Internal Revenue Code or IRS Regulation.

3.17 - Independent Contractor Status
Facilitators are independent contractors, and are not purchasers of a franchise or a business opportunity. The agreement between MMTPP and its Facilitators does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the Facilitator. Facilitators shall not be treated as an employee for his or her services or for Federal or State tax purposes. All Facilitators are responsible for paying local, state, and federal taxes due from all compensation earned as a Facilitator of the Company. The Facilitator has no authority (expressed or implied), to bind the Company to any obligation. Each Facilitator shall establish his or her own goals, hours, and methods of sale, so long as he or she complies with the terms of the Facilitator Agreement, these Policies and Procedures, and applicable laws.

3.18 - Insurance
You may wish to arrange insurance coverage for your business. Your homeowner’s insurance policy does not cover business-related injuries, or the theft of or damage to inventory or business equipment. Contact your insurance agent to make certain that your business property is protected. This can often be accomplished with a simple “Business Pursuit” endorsement attached to your present home owner’s policy.

3.19 - International Marketing
MMTPP has published or will publish a policy manual for each country in which it conducts or will conduct business. Facilitators operating outside of the United States must comply with the policies of each country in which they operate. Copies of the international policy manuals are or will be available at www.MMTPP.com/forms.

3.20 - Inventory Loading
Non-applicable at this time.

3.21 - Adherence to Laws and Ordinances
Facilitators shall comply with all federal, state, and local laws and regulations in the conduct of their businesses. Many cities and counties have laws regulating certain home-based businesses. In most cases these ordinances are not applicable to Facilitators because of the nature of their business. However, Facilitators must obey those laws that do apply to them. If a city or county official tells a Facilitator that an ordinance applies to him or her, the Facilitator shall be polite and cooperative, and immediately send a copy of the ordinance to the Compliance Department of MMTPP. In most cases there are exceptions to the ordinance that may apply to MMTPP Facilitators.

3.22 - Minors
A person who is recognized as a minor in his/her state of residence may not be a MMTPP Facilitator. Facilitators shall not enroll or recruit minors into the MMTPP program.

3.23 - One MMTPP Business per Facilitator and per Household
A Facilitator may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one MMTPP business. No individual may have, operate or receive compensation from more than one MMTPP business. Individuals of the same family unit may not enter into or have an interest in more than one MMTPP Business. A “family unit” is defined as spouses and dependent children living at or doing business at the same address. In order to maintain the integrity of the MMTPP Marketing and Compensation Plan, husbands and wives or common-law couples (collectively “spouses”) who wish to become MMTPP Facilitators must be jointly sponsored as one MMTPP business. Spouses, regardless of whether one or both are signatories to the Facilitator Application and Agreement, may not own or operate any other MMTPP business, either individually or jointly, nor may they participate directly or indirectly (as a shareholder, partner, trustee, trust beneficiary, or any other legal or equitable ownership) in the ownership or management of another MMTPP business in any form. An exception to the one business per Facilitator rule will be considered on a case by case basis if two Facilitators marry or in cases of a Facilitator receiving an interest in another business through inheritance. Requests for exceptions to policy must be submitted in writing to the Compliance Department.

3.23.1 - Spouses With Separate Businesses Pre-Dating August 1, 2010
Spouses that each owned a MMTPP business prior to August 1, 2010 may retain their separate businesses. Notwithstanding this exemption, spouses may have a shared or joint interest in only one MMTPP business.

3.23.2 - Adult Children in the Household
The children of a Facilitator who have reached the age of 18 and who reside in the household of a Facilitator may have their own business. However, such child must be the bona fide owner and operator of the business, and all orders and fees must be paid through a credit card that is in the name of the child.

3.24 - Actions of Household Members or Affiliated Individuals
If any member of a Facilitator’s immediate household engages in any activity which, if performed by the Facilitator, would violate any provision of the Agreement, such activity will be deemed a violation by the Facilitator and MMTPP may take disciplinary action pursuant to the Statement of Policies against the Facilitator. Similarly, if any individual Facilitator in any way with a corporation, partnership, trust or other business entity (collectively “affiliated individual”) violates the Agreement, such action(s) will be deemed a violation by the business entity, and MMTPP may take disciplinary action against the entity. Likewise, if a Facilitator enrolls in MMTPP as a business entity, each shareholder, officer, member, partner, or other individual or entity with an ownership interest or management responsibility in the independent business shall be personally and individually bound to, and must comply with, the terms and conditions of the Agreement, and MMTPP may take disciplinary action jointly and severally against each such individual with an ownership interest.

3.25 - Requests for Records
Any request from a Facilitator for copies of invoices, applications, downline activity reports, or other records will require a fee of $1.00 per page per copy. This fee covers the expense of mailing and time required to research files and make copies of the records.

3.26 - Sale, Transfer, Assignment or Alteration of Ownership Interest of MMTPP Business
Although a MMTPP business is a privately owned, independently operated business, the sale, transfer, assignment, or alteration of ownership interest (e.g. adding a partner) of a MMTPP business is subject to certain limitations. If a Facilitator wishes to sell his or her MMTPP business, the following criteria must be met:
• Protection of the existing line of sponsorship must always be maintained so that the MMTPP business continues to exist
• The buyer or transferee must become a qualified MMTPP Facilitator. If the buyer is an active MMTPP Facilitator, he or she
• Before the sale, transfer or assignment can be finalized and approved by MMTPP, any debt obligations the selling Facilitator has with MMTPP must be satisfied.
• The selling Facilitator must be in good standing and not in violation of any of the terms of the Agreement.
• A MMTPP business can be sold as long as the following criteria are met:
• While MMTPP will not withhold approval of sale or transfer unreasonably, MMTPP reserves the right to prevent such sale if Prior to selling a MMTPP business, the selling Facilitator must notify MMTPP’s Facilitator Services Department of his or her intent to sell the MMTPP business. No changes in line of sponsorship can result from the sale or transfer of a MMTPP business.

3.27 - Separation of a MMTPP Business
MMTPP Facilitators sometimes operate their MMTPP businesses as husband-wife partnerships, regular partnerships, corporations, or trusts. At such time as a marriage may end in divorce or a corporation, partnership or trust (the latter three entities are collectively referred to herein as “entities”) may dissolve, arrangements must be made to assure that any separation or division of the business is accomplished so as not to adversely affect the interests and income of other businesses up or down the line of sponsorship. If the separating parties fail to provide for the best interests of other Facilitators and the Company in a timely fashion, MMTPP will involuntarily terminate the Facilitator Agreement. During the divorce or entity dissolution process, the parties must adopt one of the following methods of operation:

3.27.1 - One of the parties may, with consent of the other(s), operate the MMTPP business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners or trustees authorize MMTPP to deal directly and solely with the other spouse or non-relinquishing shareholder, partner or trustee.

3.27.2 - The parties may continue to operate the MMTPP business jointly on a “business-as-usual” basis, whereupon all compensation paid by MMTPP will be paid according to the status quo as it existed prior to the divorce filing or dissolution proceedings. This is the default procedure if the parties do not agree on the format set forth above. Under no circumstances will the Downline Organization of divorcing spouses or a dissolving business entity be divided. Similarly, under no circumstances will MMTPP split commission and bonus checks between divorcing spouses or members of dissolving entities. MMTPP will recognize only one Downline Organization and will issue only one commission check per MMTPP business per commission cycle. Commission checks shall always be issued to the same individual or entity. In the event that parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition of commissions and ownership of the business in a timely fashion as determined by the Company, the Facilitator Agreement shall be involuntarily canceled. If a former spouse has completely relinquished all rights in the original MMTPP business pursuant to a divorce, he or she is thereafter free to enroll under any sponsor of his or her choosing without waiting six calendar months. In the case of business entity dissolutions, the former partner, shareholder, member, or other entity affiliate who retains no interest in the business must wait six calendar months from the date of the final dissolution before re-enrolling as a Facilitator. In either case however, the former spouse or business affiliate shall have no rights to any Facilitators in their former organization or to any former retail customer. They must develop the new business in the same manner as would any other new Facilitator.

3.28 - Sponsoring
All active Facilitators in good standing have the right to sponsor and enroll others into MMTPP. Each prospective Customer or Facilitator has the ultimate right to choose his or her own Sponsor. If two Facilitators claim to be the Sponsor of the same new Facilitator or Customer, the Company shall regard the first application received by the Company as controlling.

3.29 - Succession
Upon the death or incapacitation of a Facilitator, his or her business may be passed to his or her heirs. Appropriate legal documentation must be submitted to the Company to ensure the transfer is proper. Accordingly, a Facilitator should consult an attorney to assist him or her in the preparation of a will or other testamentary instrument. Whenever a MMTPP business is transferred by a will or other testamentary process, the beneficiary acquires the right to collect all bonuses and commissions of the deceased Facilitator’s marketing organization provided the following qualifications are met. The successor(s) must:
• Execute a Facilitator Agreement;
• Comply with terms and provisions of the Agreement; and
• Meet all of the qualifications for the deceased Facilitator’s status.
• Bonus and commission checks of a MMTPP business transferred pursuant to this section will be paid in a single check. Commission checks will be sent;
• If the business is bequeathed to joint devisees, they must form a business entity and acquire a federal taxpayer identification number. MMTPP will issue all bonus and commission checks and one 1099 to the business entity.

3.29.1 - Transfer Upon Death of a Facilitator
To effect a testamentary transfer of a MMTPP business, the executor of the estate must provide the following to MMTPP: (1) an original death certificate; (2) certified letters testamentary or a letter of administration appointing an executor; (3) instructions from the authorized executor to MMTPP specifying to whom the business and income should be transferred; and (4) a completed Facilitator Agreement executed by the beneficiary.

3.29.2 - Transfer Upon Incapacitation of an Facilitator
To effectuate a transfer of a MMTPP business because of incapacity, the successor must provide the following to MMTPP: (1) a notarized copy of an appointment as trustee; (2) a notarized copy of the trust document or other documentation establishing the trustee’s right to administer the MMTPP business; and (3) a completed Facilitator Agreement executed by the trustee.

3.30 - Telemarketing Techniques
The Federal Trade Commission and the Federal Communications Commission each have laws that restrict telemarketing practices. Both federal agencies (as well as a number of states) have “do not call” regulations as part of their telemarketing laws. Although MMTPP does not consider Facilitators to be “telemarketers” in the traditional sense of the word, these government regulations broadly define the term “telemarketer” and “telemarketing” so that your inadvertent action of calling someone whose telephone number is listed on the federal “do not call” registry could cause you to violate the law. Moreover, these regulations must not be taken lightly, as they carry significant penalties (up to $11,000.00 per violation). Therefore, Facilitators must not engage in telemarketing in the operation of their MMTPP businesses. The term “telemarketing” means the placing of one or more telephone calls to an individual or entity to induce the purchase of a MMTPP product or service, or to recruit them for the MMTPP opportunity. “Cold calls” made to prospective customers or Facilitators that promote either MMTPP’s products or services or the MMTPP opportunity constitute telemarketing and are prohibited. However, a telephone call(s) placed to a prospective customer or Facilitator (a “prospect”) is permissible under the following situations:
• If the Facilitator has an established business relationship with the prospect. An “established business relationship” is a relationship between a Facilitator and a prospect based on the prospect’s purchase, rental, or lease of goods or (18) months immediately preceding the date of a telephone call to induce the prospect’s purchase of a product or
• The prospect’s personal inquiry or application regarding a product or service offered by the Facilitator, within the three
• If the Facilitator receives written and signed permission from the prospect authorizing the Facilitator to call. The authorization must specify the telephone number(s) which the Facilitator is authorized to call.
• In addition, Facilitators shall not use automatic telephone dialing systems relative to the operation of their MMTPP businesses. The term “automatic telephone dialing system” means equipment which has the capacity to: (a) store or produce telephone numbers to be called, using a random or sequential number generator; and (b) to dial such numbers.

SECTION 4 - RESPONSIBILITIES OF DISTRIBUTORS

4.1 - Change of Address, Telephone, and Email Addresses
To ensure timely delivery of products, support materials, and commission checks, it is critically important that the MMTPP’s files are current. Street addresses are required for shipping since UPS cannot deliver to a post office box. Facilitators planning to change their e-mail address or move must send their new address and telephone numbers to MMTPP’s Corporate Offices to the attention of the Facilitator Services Department. To guarantee proper delivery, two weeks advance notice must be provided to MMTPP on all changes.

4.2 - Continuing Development Obligations

4.2.1 - Ongoing Training
Regardless of their level of achievement, Facilitators have an ongoing obligation to continue to personally promote sales by generating new customers and servicing their existing customers.

4.2.2 - Increased Training Responsibilities
As Facilitators progress through the various levels of leadership, they will become more experienced in sales techniques, product knowledge, and understanding of the MMTPP program. They will be called upon to share this knowledge with lesser experienced Facilitators within their organization.

4.2.3 - Ongoing Sales Responsibilities
Regardless of their level of achievement, Facilitators have an ongoing obligation to continue to personally promote sales through the generation of new Facilitators and through servicing their existing Facilitators and networks.

4.3 - Nondisparagement
MMTPP wants to provide its independent Facilitators 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 Facilitator Services Department. Remember, to best serve you, we must hear from you! While MMTPP welcomes constructive input, negative comments and remarks made in the field by Facilitators about the Company, its products, or compensation plan serve no purpose other than to sour the enthusiasm of other MMTPP Facilitators. For this reason, and to set the proper example for their downline, Facilitators must not disparage, demean, or make negative remarks about MMTPP, other MMTPP Facilitators, MMTPP’s products, the Marketing and Compensation plan, or MMTPP’s directors, officers, or employees.

4.4 - Providing Documentation to Applicants
Facilitators must provide the most current version of the Policies and Procedures and the Compensation Plan to individuals whom they are sponsoring to become Facilitators before the applicant signs a Facilitator Agreement. Additional copies of Policies and Procedures can be downloaded from MMTPP’s website.

4.5 - Reporting Policy Violations
Facilitators observing a Policy violation by another Facilitator should submit a written report of the violation directly to the attention of the MMTPP Compliance Department. Details of the incidents such as dates, number of occurrences, persons involved, and any supporting documentation should be included in the report.

SECTION 5 - SALES REQUIREMENTS

5.1 - Product Sales
There are no sales requirements for MMTPP Facilitators. The Facilitators role is to establish a MasterMind group of 6 to 10 members(Facilitators) who are each paying monthly dues of $130 USD

5.2 - No Territory Restrictions
There are no exclusive territories granted to anyone. No franchise fees are required.

SECTION 6 - BONUSES AND COMMISSIONS

6.1 - Bonus and Commission Qualifications
A Facilitator must be active and in compliance with the Agreement to qualify for bonuses and commissions. So long as a Facilitator complies with the terms of the Agreement, MMTPP shall pay commissions to such Facilitator in accordance with the Marketing and Compensation plan. The minimum amount for which MMTPP will issue a check is $10.00. If a Facilitator’s bonuses and commissions do not equal or exceed $10.00, the Company will accrue the commissions and bonuses until they total $10.00. A check will be issued once $10.00 has been accrued.

6.2 - Adjustment to Bonuses and Commissions
None identified at this time.

6.3 - Reports
All information provided by MMTPP in online or telephonic downline activity reports, including but not limited to Personal Commissionable Volume (or any part thereof), and downline sponsoring activity is believed to be accurate and reliable. Nevertheless, due to various factors including but not limited to the inherent possibility of human and mechanical error; the accuracy, completeness, and timeliness of orders; denial of credit card and electronic check payments; returned products; credit card and electronic check charge-backs; the information is not guaranteed by MMTPP or any persons creating or transmitting the information. ALL PERSONAL AND GROUP SALES VOLUME INFORMATION IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESS OR IMPLIED, OR REPRESENTATIONS OF ANY KIND WHATSOEVER. IN PARTICULAR BUT WITHOUT LIMITATION THERE SHALL BE NO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, OR NON INFRINGEMENT. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, MMTPP AND/OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION WILL IN NO EVENT BE LIABLE TO ANY FACILITATOR OR ANYONE ELSE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT ARISE OUT OF THE USE OF OR ACCESS TO PERSONAL AND GROUP SALES VOLUME INFORMATION (INCLUDING BUT NOT LIMITED TO LOST PROFITS, BONUSES, OR COMMISSIONS, LOSS OF OPPORTUNITY, AND DAMAGES THAT MAY RESULT FROM INACCURACY, INCOMPLETENESS, INCONVENIENCE, DELAY, OR LOSS OF THE USE OF THE INFORMATION), EVEN IF MMTPP OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. TO THE FULLEST EXTENT PERMITTED BY LAW, MMTPP OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE NO RESPONSIBILITY OR LIABILITY TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY OR OTHER THEORY WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO. Access to and use of MMTPP’s online and telephone reporting services and your reliance upon such information is at your own risk. All such information is provided to you “as is”. If you are dissatisfied with the accuracy or quality of the information, your sole and exclusive remedy is to discontinue use of and access to MMTPP’s online and telephone reporting services and your reliance upon the information.

SECTION 7 - PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASE

7.1 - Product Guarantee
Non-applicable at this time.

7.2 - Returns by Retail Customers
Non-applicable at this time.

7.3 - Right of Rescission
A newly enrolled Facilitator has three business days (72 hours, excluding Sundays and legal holidays) after the execution of the Facilitator application to cancel the application and receive a full refund consistent with the cancellation notice on the Facilitator application (5 business days for Alaska residents).

7.4 - Return of Inventory and Sales Aids by Facilitators Upon Cancellation
Non-applicable at this time.

7.5 - Procedures for All Returns
Non-Applicable at this time.

SECTION 8 - DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS

8.1 - Disciplinary Sanctions
Violation of the Agreement, these Policies and Procedures, violation of any common law duty, including but not limited to any applicable duty of loyalty, any illegal, fraudulent, deceptive or unethical business conduct, or any act or omission by a Facilitator that, in the sole discretion of the Company may damage its reputation or goodwill (such damaging act or omission need not be related to the Facilitator’s MMTPP business), may result, at MMTPP’s discretion, in one or more of the following corrective measures:
• Issuance of a written warning or admonition;
• Requiring the Facilitator to take immediate corrective measures;
• Imposition of a fine, which may be withheld from bonus and commission checks;
• Loss of rights to one or more bonus and commission checks;
• MMTPP may withhold from a Facilitator all or part of the Facilitator’s bonuses and commissions
during the period that MMTPP is investigating any conduct allegedly in violation of the Agreement.
If a Facilitator’s business is canceled for any of the reasons listed herein, the following remedies are available to MMTPP:
• Suspension of the individual’s Facilitator Agreement for one or more pay periods;
• Involuntary termination of the offender’s Facilitator Agreement;
• Suspension and/or termination of the offending Facilitator’s MMTPP website or website access;
• Any other measure expressly allowed within any provision of the Agreement or which MMTPP deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the Facilitator’s policy violation or contractual breach;
• In situations deemed appropriate by MMTPP, the Company may institute legal proceedings for monetary and/or equitable relief. In exercising the discretion granted to MMTPP pursuant to this section to protect its reputation or goodwill, to the extent a Facilitator is engaged in conduct or activities which are, in MMTPP’s sole judgment, detrimental to MMTPP or its business, MMTPP reserves the right to require that such Facilitator undertake or refrain from undertaking such actions as MMTPP may require to safeguard the Company’s reputation and/or goodwill. Activities that could, on occasion, be deemed detrimental may include activities of the Facilitator unrelated to his or her MMTPP business, including activities undertaken with other network marketing and similar companies. Although Facilitators are not required to forgo association with such companies, Facilitators must agree to abide by the requirements requested by MMTPP to mitigate or avoid harm to the Company and its business. Any requirements imposed under this paragraph will be established on a case by case basis and at MMTPP’s sole discretion. The Facilitator will be given 30 calendar days to comply with MMTPP’s request(s). Should the Facilitator fail to comply with such requests, that Facilitator’s account may be suspended or terminated.

8.2 - Grievances and Complaints
When a Facilitator has a grievance or complaint with another Facilitator regarding any practice or conduct in relationship to their respective MMTPP businesses, the complaining Facilitator should first report the problem to his or her Sponsor who should review the matter and try to resolve it with the other party’s upline sponsor. If the matter involves interpretation or violation of Company policy, it must be reported in writing to the Facilitator Services Department at the Company. The Facilitator Services Department will review the facts and attempt to resolve it.

8.3 - Mediation
Prior to instituting an arbitration, the parties shall meet in good faith and attempt to resolve any dispute arising from or relating to the Agreement through non-binding mediation. One individual who is mutually acceptable to the parties shall be appointed as mediator. The mediator’s fees and costs, as well as the costs of holding and conducting the mediation, shall be divided equally between the parties. Each party shall pay its portion of the anticipated shared fees and costs at least 10 days in advance of the mediation. Each party shall pay its own attorneys fees, costs, and individual expenses associated with conducting and attending the mediation. Unless otherwise agreed by the parties, mediation shall be held in Long Beach, CA, and shall last no more than two business days.

8.4 - Arbitration
If mediation is unsuccessful, any controversy or claim arising out of or relating to the Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Facilitators waive all rights to trial by jury or to any court. All arbitration proceedings shall be held in Long Beach, CA. All parties shall be entitled to all discovery rights pursuant to the Federal Rules of Civil Procedure. There shall be one arbitrator, an attorney at law, who shall have expertise in business law transactions with a strong preference being an attorney knowledgeable in the direct selling industry, selected from the panel which the American Arbitration Panel provides. Each party to the arbitration shall be responsible for its own costs and expenses of arbitration, including legal and filing fees. The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to a judgment in any court of competent jurisdiction. This agreement to arbitration shall survive any termination or expiration of the Agreement. Notwithstanding the foregoing, nothing in these Policies and Procedures shall prevent MMTPP from applying to and obtaining from any court having jurisdiction a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction or other relief available to safeguard and protect MMTPP’s interest prior to, during or following the filing of any arbitration or other proceeding or pending the rendition of a decision or award in connection with any arbitration or other proceeding.

8.5 - Governing Law, Jurisdiction and Venue
Jurisdiction and venue of any matter not subject to arbitration shall reside exclusively in Los Angeles County, State of California. The Federal Arbitration Act shall govern all matters relating to arbitration. The law of the State of California shall govern all other matters relating to or arising from the Agreement. Notwithstanding the foregoing, and the arbitration provision in Section 8.4 residents of the State of Louisiana shall be entitled to bring an action against MMTPP in their home forum and pursuant to Louisiana law.

SECTION 9 - PAYMENT AND SHIPPING

9.1 - Returned Checks
All checks returned by a Facilitator’s bank for insufficient funds will be re-submitted for payment. A $25.00 returned check fee will be charged to the account of the Facilitator. After receiving a returned check from a Facilitator, all future orders must be paid by Credit Card, money order or cashier’s check. Any outstanding balance owed to MMTPP by a Facilitator for NSF checks and returned check fees will be withheld from subsequent bonus and commission checks.

9.2 - Restriction on Third Party Use of Credit Cards and Checking Account Access.
Facilitators shall not permit other Facilitators or customers to use his or her credit card, or permit debits to their checking accounts, to enroll or to make purchases from the company, without written permission submitted to the company. In the event of Credit Card Abuse or credit card charge backs, the Facilitator Agreement may be immediately cancelled.

9.3 - Sales Taxes
Non-applicable at this time.

SECTION 10 - INACTIVITY AND CANCELLATION

10.1 - Effect of Cancellation
So long as a Facilitator remains active and complies with the terms of the Facilitator Agreement and these Policies and Procedures, MMTPP shall pay commissions to such Facilitator in accordance with the Marketing and Compensation Plan. A Facilitator’s bonuses and commissions constitute the entire consideration for the Facilitator’s efforts in generating sales and all activities related to generating sales (including building a downline organization). Following a Facilitator’s nonrenewal of his or her Facilitator Agreement, cancellation for inactivity, or voluntary or involuntary cancellation of his or her Facilitator Agreement (all of these methods are collectively referred to as “cancellation”), the former Facilitator shall have no right, title, claim or interest to the marketing organization which he or she operated, or any commission or bonus from the sales generated by the organization. A Facilitator whose business is cancelled will lose all rights as a Facilitator. This includes the right to sell products and services and the right to receive future commissions, bonuses, or other income resulting from the sales and other activities of the Facilitator’s former downline sales organization. In the event of cancellation, Facilitators agree to waive all rights they may have, including but not limited to property rights, to their former downline organization and to any bonuses, commissions or other remuneration derived from the sales and other activities of his or her former downline organization. Following a Facilitator’s cancellation of his or her Facilitator Agreement, the former Facilitator shall not hold himself or herself out as a MMTPP Facilitator and shall not have the right to sell MMTPP products or services. A Facilitator whose Facilitator Agreement is canceled shall receive commissions and bonuses only for the last full pay period he or she was active prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation).

10.2 - Cancellation Due to Inactivity
Non-applicable at this time.

10.3 - Involuntary Cancellation
A Facilitator’s violation of any of the terms of the Agreement, including any amendments that may be made by MMTPP in its sole discretion, may result in any of the sanctions listed in Section 8.1, including the cancellation of his or her Facilitator Agreement. Cancellation shall be effective on the date on which written notice is mailed, faxed, or delivered to an express courier, to the Facilitator’s last known address (or fax number), or to his/her attorney, or when the Facilitator receives actual notice of cancellation, whichever occurs first.

10.4 - Voluntary Cancellation
A participant in this network marketing plan has a right to cancel at any time, regardless of reason. Cancellation must be submitted in writing to the Company at its principal business address. The written notice must include the Facilitator’s signature, printed name, address, and Facilitator I.D. Number.

10.5 - Non-renewal
A Facilitator may also voluntarily cancel his or her Facilitator Agreement by failing to renew the Agreement on its anniversary date. The Company may also elect not to renew a Facilitator’s Agreement upon its anniversary date.

SECTION 11 - DEFINITIONS

Active Facilitator — A Facilitator who satisfies the minimum Personal Commissionable Volume requirements, as set forth in the MMTPP Plan, to ensure that he or she is eligible to receive bonuses and commissions. To remain an Active Facilitator, the Facilitator must have an active MasterMind group meeting weekly during the last six months.

Agreement — The contract between the Company and each Facilitator includes the Facilitator Application and Agreement, the MMTPP Policies and Procedures, the MMTPP Marketing and Compensation Plan, and the Business Entity Application and Agreement (where appropriate), all in their current form and as amended by MMTPP in its sole discretion. These documents are collectively referred to as the “Agreement.”

Cancel — The termination of a Facilitator’s business. Cancellation may be either voluntary, involuntary, through non-renewal or inactivity.

Downline Activity Report — A report generated by MMTPP, and available on/in a Facilitator’s replicated website, that provides critical data relating to the identities of Facilitators, sales information, and enrollment activity of each Facilitator’s Marketing Organization. This report contains confidential and trade secret information which is proprietary to MMTPP.

Level — The layers of downline Customers and Facilitators in a particular Facilitator’s Marketing Organization. This term refers to the relationship of a Facilitator relative to a particular upline Facilitator, determined by the number of Facilitators between them who are related by sponsorship. For example, if A, sponsors B, who sponsors C, who sponsors D, who sponsors E, then E is on A’s fourth level.

Official MMTPP Material — Literature, audio or video tapes, and other materials developed, printed, published and distributed by MMTPP or its authorized re-sellers to Facilitators.

Personal Production — Moving MMTPP products or services to an end consumer for personal use.

Personal Commissionable Volume. Non-applicable at this time.

Rank — The “title” that a Facilitator has achieved pursuant to the MMTPP Marketing and Compensation Plan.

Recruit — For purposes of MMTPP’s Conflict of Interest Policy (Section 3.10), the term “Recruit” means the actual or attempted sponsorship, solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another MMTPP Facilitator or Customer to enroll or participate in another multilevel marketing, network marketing or direct sales opportunity.

Resalable — Products and Sales aids shall be deemed “resalable” if each of the following elements is satisfied: 1) they are unopened and unused; 2) packaging and labeling has not been altered or damaged; 3) they are in a condition such that it is a commercially reasonable practice within the trade to sell the merchandise at full price; 4) it is returned to MMTPP within one year from the date of purchase. Any merchandise that is clearly identified at the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be resalable.

Retail Customer — An individual who purchases MMTPP products from a Facilitator but who is not a participant in the MMTPP Plan.

Retail Customer — An individual or entity that purchases MMTPP products or services, but who is not a Facilitator, or an immediate household family member of a Facilitator.

Retail Sales — Sales to a Retail Customer. If a sale is made to a customer who subsequently submits a MMTPP Facilitator Agreement within 30 days from the date of the sale, or if an immediate household family member of the Customer submits a MMTPP Facilitator Agreement within 30 days of the sale, such sale shall not constitute a Retail Sale. A Facilitator’s personal purchases from MMTPP do not constitute Retail Sales.

Sponsor — A Facilitator who enrolls a Customer, contact or social media connection into the Company, and is listed as the Sponsor on the Facilitator Application and Agreement. The act of enrolling others and training them to become Facilitators is called “sponsoring.”

Starter Kit — A selection of MMTPP training materials and business support literature.

Upline — This term refers to the Facilitator or Facilitators above a particular Facilitator in a sponsorship line up to the Company. Conversely stated, it is the line of sponsors that links any particular Facilitator to the Company.