August 2019 - Sunrider · SUNRIDER® BUSINESS GUIDE UNITED STATES AUGUST 2019 1 Sunrider ® Business Guide Introduction Welcome to Sunrider! Our mission is to nourish the world and

August 2019

Table of Contents

Page Number

Introduction 1

Sunrider Code of Ethics 3

Definitions 5

SECTION 1: THE SUNRIDER INFINITY COMPENSATION PLAN 8

1. Rank Titles and Rank Qualifications 8

1.1 Independent Business Owner (IBO) 8

1.2 Star 9

1.3 Star Prime 9

1.4 Star Elite 9

1.5 Ace 9

1.6 Ace Prime 10

1.7 Ace Elite 10

1.8 Ace Royal 10

1.9 Hero 11

1.10 Hero Elite 11

1.11 Hero Royal 11

1.12 Icon 12

1.13 Icon Elite 12

1.14 Icon Royal 12

2. Infinity Compensation Plan Bonus Payout 13

2.1 Retail Sales Bonus 14

2.2 Fast Start Bonus 15

2.3 Star Elite Advancement Bonus 15

2.4 Ace Royal Advancement Bonus 15

2.5 Unilevel Bonus 15

2.6 Development Bonus 16

Table of Contents

Page Number

2.7 Turbo Infinity Bonus 17

2.8 Check Match 18

2.9 Icon Bonus 20

2.10 Responsibilities of Leaders

2.11 The Sunrider International Sponsor Leadership Program 22

2.12 Payment of Commissions and Bonuses 22

2.13 Recognition 23

SECTION 2: RULES, POLICIES, AND PROCEDURES 24

1. Establishing , Developing, and Operating an Independent Business 24

1.1 Initial Qualifications 24

1.2 Independent Business Relationships 25

1.3 Financial Representation to Prospective Independent Business Owners 27

1.4 Limitations on Product Claims and Representations 27

1.5 No Purchase Requirements 28

1.6 Training New Independent Business Owners 28

1.7 Sponsorship Restrictions 28

1.8 Cross Organization Activity/Double Sponsoring 29

1.9 Cross-Sponsoring (Conducting Other Businesses) 31

1.10 Operating as a Corporation, Partnership, Trust, or Other Business Entity 32

1.11 Husband and Wife Partnership 34

1.12 Pricing, Ordering, Packaging, Labeling, and Selling 35

1.13 Retailing Restrictions 36

1.14 Advertising, Intellectual Property, and Proprietary Information 37

1.15 Sunrider on the Internet 40

1.16 Sunrider Anti-Spam Policy 44

2. Division of An Independent Business 45

2.1 Division Proposed as a Result of Divorce 46

2.2 Division Proposed as a Result of Partnerships, Corporations, and Other Business Entities 47

3. Sale of An Independent Business 49

4. Transfer Due to Death or Incapacity 51

4.1 Spousal Successor-in-Interest 52

4.2 Children Successors-in-Interest 52

4.3 Other Successors-in-Interest 52

4.4 Additional Information 53

5. Agreement Violations, Investigation, Enforcement, and Resolution Procedures 53

6. Suspension and Termination 54

6.1 Suspension 55

6.2 Voluntary Termination 55

6.3 Involuntary Termination and Sanctions 55

6.4 Rules Applying to All Terminations 56

7. Duration of Account And Renewal 58

8. Excuse of Nonperformance 58

9. Assignment and Delegation 58

10. Notice of Amendment 59

11. Limited Warranty 59

12. Disclaimer of Warranties and Limitation of Liability 60

13. Infringement 60

14. Indemnity 61

15. Integration 61

16. Waiver 61

17. Severability 62

18. Circumvention of Policies 62

19. Dispute Resolution and Arbitration 62

20. Restriction of Period of Limitation of Action 66

21. Miscellaneous 66

SECTION 3: GENERAL OPERATING PROCEDURES 68

1. Independent Business Owner Agreement 68

2. Sunrider Forms 68

3. Ordering Product 69

3.1 Back Orders 70

3.2 Temporarily Out of Stock 70

3.3 Record of Invoices 71

4. Payments 71

4.1 Cashier’s Check/Money Order/Personal Check/Bank Draft/TeleCheck 71

4.2 Returned Checks/Bank Drafts 72

4.3 Credit Cards/PayPal 72

4.4 Cash 72

5. Shipping 73

6. Return of Products 73

6.1 14-Day Return Policies 74

1. First Time Purchase Policy 74

2. Damaged/Defective Product Return Policy 75

6.2 60-Day Return Policy 75

6.3 Extra Product Returns 75

7. Sales Volume Transfer Policy 76

8. Account Changes 76

8.1 The Independent Business Owner Change of Notice Form 76

8.2 Change of Address or Name 76

9. Requesting Reports and Labels 78

9.1 Upline Mail Authorization 78

SUNRIDER® BUSINESS GUIDE UNITED STATES AUGUST 2019

1

Sunrider® Business Guide

Introduction

Welcome to Sunrider! Our mission is to nourish the world and inspire a life of balance,

authenticity, and well-being. We believe that investing in the holistic well-being of a person

allows everyone to live out their best life. Because of this, we’re committed to empowering

personal and professional prosperity while also supporting healthy living. We do this by

providing profitable opportunities that empower people to own their own business and

define their own success, as well as crafting all-natural products in Los Angeles that the

whole family can use.

As a new Independent Business Owner (IBO) who is interested in creating an income

through network marketing, you have partnered with a unique company. Our vision is to

foster a culture of opportunity so that people anywhere feel empowered to pave their own

path to success. So at Sunrider, you’re not required to purchase products in order to qualify

for our exciting bonuses. In fact, your success will be tied directly to the amount of work

and effort you put into your Sunrider business.

In order to achieve success with your Sunrider business, you should focus your activities on

the following 5 behaviors, which we like to call the “5 Golden Behaviors”:


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This Business Guide together with the Independent Business Owner Application and

Agreement are referred to collectively as the "Sunrider® Business Guide".

An applicant need not purchase any inventory to become an IBO. By completing the

Independent Business Owner Application and Agreement (IBO Agreement) on the Sunrider

website, an IBO is bound by every term and condition of the Sunrider® Business Guide. The

IBO Agreement is only valid for selling products within the US or its territories, and IBOs

must read and understand all of the following policies and procedures before beginning to

conduct business.

Sunrider’s policies, procedures, and agreements are subject to change for any reason at

Sunrider’s sole discretion, without notice, and IBOs are responsible for keeping track of the

latest Sunrider® Business Guide. Sunrider will email revisions to IBOs or post them on the

Sunrider website. Sunrider requests that IBOs maintain regular communication with

Sunrider in order to keep abreast of current policies and procedures. If IBOs become

inactive and then reactivate, it is the obligation of the IBOs to request and obtain any

updates or revisions to the Sunrider® Business Guide that may have been issued during the

time of inactivity.

An IBO’s ultimate growth and success are directly determined by individual efforts and the

sale of product to others. Success results from hard work, diligence, and leadership. The

level of success depends upon how effectively these qualities are exercised.

This Business Guide will help explain our rewarding business plan and will detail what you,

as a Sunrider IBO, need to do in order to qualify to earn bonuses and how those bonuses

are calculated. Sunrider’s Business Service Department will be happy to assist prospective

and current IBOs and provide responses to questions regarding Sunrider. The Business

Service Department can be reached by calling (310) 781-3808 or by email at

[email protected].


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SUNRIDER CODE OF ETHICS

Sunrider is committed to being a good corporate citizen, and as a Sunrider IBO, Sunrider

needs your help in order to for us to keep our commitments to honesty, integrity, and good

business practices. Therefore, IBOs must abide by the Sunrider Code of Ethics when

conducting their Independent Business.

The Code of Ethics states the following:

I will follow the highest standards of honesty and integrity in all that I do.

Sunrider® products are not meant to cure, treat, or mitigate any disease, and I will

not claim or imply that they do. Instead, I will only use statements regarding

products found in current company marketing material.

Sunrider® products are Simply the Best® and should be treated as such. The sale of

Sunrider® products should be based upon genuine consumer demand, and thus the

primary purpose of sales should not be to qualify for a particular rank or to increase

bonus payout.

I will present the Sunrider Business Plan accurately and honestly, clearly portraying

the level of significant effort required to achieve success. I shall not engage in any

deceptive, false, unethical, or unlawful consumer or recruiting practice, and I will

make no statements, promises, or testimonials that are likely to mislead consumers

or prospective IBOs.

The Sunrider Business Plan has been crafted to reward IBOs for their efforts, hard

work, and diligence. Any attempts to circumvent the spirit of this plan (including

but not limited to creating false Customer, Preferred Customer, or IBO accounts,

purchasing Sunrider® products on behalf of another account, and the like) will be

considered a violation of the Code of Ethics.


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Sunrider promotes positivity, and therefore I will not make negative or disparaging

remarks about people, products, Sunrider, or other companies that may undermine

the morale, motivation, or income of any IBO.

I will consistently put forth my best effort to promote the success of my Sunrider

business.

I will not engage in activities or other businesses which conflict with or may cause

damage, loss, or harm to Sunrider or to any IBO.

I will use Sunrider trademarks, logos, IBO lists, customer lists, literature, meetings,

gatherings, or any other Sunrider resource only to further the benefit of my

Sunrider business.

I will strive to ensure that my customers are satisfied with Sunrider® products and

with my service and will ensure that they are all aware of Sunrider’s return policy.

I will fulfill all requirements associated with being a sponsor and a responsible

leader as I build my Sunrider business.

I will abide by all rules, regulations, laws, and ordinances that are applicable to the

operation of my Sunrider business. In order to abide by the labeling rules of each

country, Sunrider product may only be sold in the country for which it is labelled.

I will respect the privacy of other IBOs.

Sunrider takes the Code of Ethics very seriously and will investigate reports of violations of

the Code. During its investigation, Sunrider may, in its sole discretion, temporarily suspend

bonuses. If Sunrider, in its sole discretion, determines that allegations of the Code of Ethics

violations are true, Sunrider, in its sole discretion, may subject the IBO to disciplinary

action, including but not limited to the loss of bonuses and the suspension or termination

of their Independent Business.


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DEFINITIONS

Independent Business Owner (IBO) is a person who has applied and whose application has

been accepted by Sunrider to resell products and participate in Sunrider’s compensation

plan.

Preferred Customer is a customer who has completed an application to be a Preferred

Customer and paid the applicable $19.95 enrollment fee. Preferred Customers who have

signed up for a $200 monthly Autoship will receive 10% off of the retail price and will

receive free shipping on orders of $100 or greater. Preferred Customers not on Autoship

will receive 5% off of the retail price. Preferred Customers do not hold positions in a

genealogy and do not participate in the compensation plan. Preferred Customers may

cancel their membership at any time and will be thereafter converted to a Retail Customer.

Retail Customer is a customer who purchases Sunrider® products at the retail price. Retail

Customers may sign up to purchase products online or purchase products directly from a

Sunrider IBO. Retail Customers do not hold positions in a genealogy.

A Leader is an IBO with a career title of Ace Royal or above.

Active describes an IBO who has at least 200 Personal Volume (PV) in the month of

qualification. An IBO must be active in order to receive bonuses.

Autoship is a monthly shipping program available to IBOs and Preferred Customers that

allows them to choose the products and packs they would like to receive on a recurring

monthly basis. Autoship is not required for any IBO qualification and can be changed or

cancelled at any time. Preferred Customers who select to autoship products over $200

retail value will be eligible to receive an additional 5% discount off retail price on product

purchases during their enrollment in autoship.

Qualifying Volume (QV) is the value of a commissionable product which is applied toward

IBO qualifications in the compensation plan. QV is a currency neutral point value that

applies internationally.


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Commissionable Volume (CV) is the assigned value of each purchased product on which

commissions are paid. It is currency specific to the country in which the order is placed.

Personal Volume (PV) is the total Qualifying Volume (QV) from an IBO’s personal purchases

and that IBO’s personally sponsored customers’ purchases. This does not include the

purchases of the IBO’s downline IBOs.

Downline Volume (DV) is the total Qualifying Volume (QV) of an IBO and his or her entire

downline organization. In other words, it is the total PV of an IBO and his/her downline

IBOs regardless of titles.

Leg begins with a first level IBO and includes all the IBOs beneath them. Therefore, an IBO

will have as many legs as they have first level IBOs.

International Leg is any first level personally sponsored IBO whose home country is

different than the sponsor’s home country, and includes all the IBOs beneath them.

Builder Leg is any first level personally sponsored IBO and his or her entire downline where

at least one IBO is active in that month and the combined total Downline Volume (DV) from

everyone in that leg is at least 1,000 DV.

Level is the position an IBO has in a downline relative to another upline or downline IBO.

Personally sponsored IBOs are the sponsoring IBO’s first level, and so on. Customers are

not considered when counting levels.

Paid-as Title is the title for which an IBO qualifies during the month, regardless of what his

or her Career Title is.

Career Title is the highest title an IBO has achieved since they joined Sunrider, unless they

have not met the qualifications to keep said title.

Generation starts with a Career Title Ace Royal or higher in an IBO’s downline and includes

all the IBOs below them, down to but not including the next IBO that has a Career Title of


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Ace Royal or higher. If an IBO with a Career Title of Ace Royal or higher is not paid-as an

Ace Royal or higher, they are still considered the start of a generation.

Personal Group consists of an IBO and his/her downline, down to but not including, the

next Ace Royal or higher (which is the start of his/her first generation).

Maximum Volume Rule (Max Vol Rule) is rule that affects the Star Elite rank and above,

and applies to DV. It states that only up to half of DV requirement of each particular rank

will be counted from any single leg or from the IBO’s own PV for qualification purposes

only. The purpose of this rule is prevent IBOs from inventory loading and from attempting

to “buy” a rank. Any attempt to circumvent the spirit of this rule (including but not limited

to creating false Customer, Preferred Customer, or IBO accounts, purchasing Sunrider®

products on behalf of another account, and the like) will be considered a violation of the

Code of Ethics and this Business Guide.

Net Retail Price represents the price of the product (local country currency) if it was

purchased at the full retail value, not including shipping, tax, etc. The Net Retail Price may

be different than the actual price paid at the time of purchase. If a product was ‘on sale’ or

discounted, then the Personal Sales Commission would be based on what was identified as

the “Net Retail Price” for that discounted rate.

NewGenQ, or “Newly Qualified First Generation,” is a qualification requirement for Icon

rank and above which requires that at least once every 12 months, the Icon or above must

help to promote someone in his or her personal group in his or her home country to Ace

Royal, who then qualifies at that rank (or above) for at least 3 consecutive months. This

rolling twelve month period will restart each time the Icon or above meets the above

requirements. Attempting to circumvent this requirement by any means (including but not

limited to creating false Customer, Preferred Customer, or IBO accounts, purchasing

Sunrider® products on behalf of another account, and the like) will be considered a

violation of the Code of Ethics and this Business Guide.


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Inventory Loading occurs when an IBO’s product purchases are made solely in an attempt

to advance in the marketing program, rather than made to satisfy actual consumer demand

in the marketplace for Sunrider® products. Inventory loading is a violation of the terms of

this Business Guide.

Sunrider® Business Guide refers collectively to this Business Guide plus the Independent

Business Owner Application and Agreement.

SUNRIDER BUSINESS GUIDE

SECTION 1: THE SUNRIDER INFINITY COMPENSATION PLAN

1. RANK TITLES AND RANK QUALIFICATIONS

As you promote to a new rank and Career Title within the Sunrider Infinity Compensation

Plan, you will be eligible to qualify for more bonuses. It’s that simple, and by focusing your

efforts on the “5 Golden Behaviors,” you will be rewarded while advancing rank.

The highest rank that you achieve will be your Career Title rank. This is the title that you

will be known as to your fellow IBOs. Career Titles of Ace Elite or lower will never drop.

Career Titles of Ace Royal or higher will be retained as long as you have qualified at that

title for at least 3 out of the last 12 months. If you have not qualified at that title for at least

3 out of the last 12 months, your Career Title will demote to the highest title at which you

qualified at least 3 times in the previous 12 month period, but will never demote lower

than Ace Elite. This is a 12 month rolling window.

Your Paid-as Title is simply the title at which you qualify for in a given month. Therefore,

depending on your effort and success, your Paid-as Title may fluctuate each month while

your Career Title remains the same until you promote to a rank above your current Career

Title.

The following is a list of titles and their respective qualifications:


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1.1 Independent Business Owner (IBO) is the starting rank for anyone who has

joined Sunrider to participate in the Sunrider Infinity Compensation Plan. To become an

IBO, an applicant must be 18 years or older, complete the IBO Application and Agreement,

and purchase a Starter Pack. An IBO may not have the same mailing address as a Retail

Customer, Preferred Customer, or another IBO.

IBOs are allowed to purchase products at the Sunrider IBO Price, which is 10% off of the

retail price. IBOs can qualify to earn the Retail Sales Bonus as well as the Fast Start Bonus

immediately after joining.

One year after joining Sunrider, an IBO must pay the annual renewal fee of $59 to continue

IBO membership, which will be automatically charged to the IBO’s credit card on file at the

IBO’s anniversary date. If an IBO no longer wishes to be a Sunrider IBO and participate in

the compensation plan, they may cancel at any time. If an IBO cancels their account within

60 days of paying the renewal fee only, the renewal fee will be reimbursed in full. If an IBO

does not pay the annual renewal fee, he/she will convert to a customer.

To qualify as an active IBO for purposes of the compensation plan, an IBO must have at

least 200 Personal Volume (PV) in the month of qualification. In order to keep an IBO

account open, IBOs must accumulate at least 200 PV each 12 month period and pay the

annual renewal fee or they will be converted to Preferred Customers. IBOs who have not

accumulated at least 200 PV in a 12 month period will be automatically terminated and

lose their downline, including Customers and Preferred Customers. IBOs who are

terminated or who self-terminate may sign up again as an IBO following the above steps.

1.2 Star rank is an IBO who has at least 200 PV and 500 DV in the month of

qualification. A Star qualifies for the Retail Sales Bonus, Fast Start Bonus, as well as the

Unilevel Bonus.

1.3 Star Prime rank is an IBO who has at least 300 PV and 1,000 DV in the month

of qualification. A Star Prime qualifies for the Retail Sales Bonus, Fast Start Bonus, as well

as the Unilevel Bonus.


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1.4 Star Elite rank is an IBO who has at least 400 PV and 1,800 DV in the month

of qualification. Beginning at this rank, the Maximum Volume Rule will apply to DV, which

states that only up to half of DV requirement (in this case 900 DV) will be counted from any

single leg or from the Star Elite’s own PV for qualification purposes only. A Star Elite

qualifies for the Retail Sales Bonus, Fast Start Bonus, Unilevel Bonus, as well as the Star

Elite Advancement Bonus.

1.5 Ace rank is an IBO who has at least 500 PV and 3,000 DV in the month of

qualification. The Maximum Volume Rule will apply to DV, which states that only up to half

of the DV requirement (in this case 1,500 DV) will be counted from any single leg or from

the Ace’s own PV for qualification purposes only. Beginning at this rank, there is an

additional qualification requirement of 1 Builder Leg. A Builder Leg is a leg with at least one

active IBO (200 PV) and at least 1,000 DV in that leg. An Ace qualifies for the Retail Sales

Bonus, Fast Start Bonus, Unilevel Bonus, as well as the Star Elite Advancement Bonus.

1.6 Ace Prime rank is an IBO who has at least 600 PV and 5,000 DV in the month

of qualification. The Maximum Volume Rule will apply to DV, which states that only up to

half of the DV requirement (in this case 2,500 DV) will be counted from any single leg or

from the Ace Prime’s own PV for qualification purposes only. There is an additional

qualification requirement of 2 Builder Legs. An Ace Prime qualifies for the Retail Sales

Bonus, Fast Start Bonus, Unilevel Bonus, the Star Elite Advancement Bonus, as well as the

Development Bonus.

1.7 Ace Elite rank is an IBO who has at least 700 PV and 7,000 DV in the month



from the Ace Elite’s own PV for qualification purposes only. There is an additional

qualification requirement of 3 Builder Legs. An Ace Elite qualifies for the Retail Sales Bonus,

Fast Start Bonus, Unilevel Bonus, the Star Elite Advancement Bonus, as well as the

Development Bonus.


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1.8 Ace Royal rank is an IBO who has at least 800 PV and 10,000 DV in the month



from the Ace Royal’s own PV for qualification purposes only. There is an additional

qualification requirement of 4 Builder Legs. An Ace Royal qualifies for the Retail Sales

Bonus, Fast Start Bonus, Unilevel Bonus, the Star Elite Advancement Bonus, the

Development Bonus, as well as the Ace Royal Advancement Bonus.

1.9 Hero rank is an IBO who has at least 800 PV and 18,000 DV in the month of



the Hero’s own PV for qualification purposes only. There is an additional qualification

requirement of 3 Builder Legs and 1 Ace Royal or above Leg (Builder Leg with at least one

IBO qualifying as an Ace Royal or above in it). A Hero qualifies for the Retail Sales Bonus,

Fast Start Bonus, Unilevel Bonus, the Star Elite Advancement Bonus, the Development

Bonus, the Ace Royal Advancement Bonus, the Turbo Infinity Bonus, as well as Check

Match.

1.10 Hero Elite rank is an IBO who has at least 800 PV and 36,000 DV in the month



from the Hero Elite’s own PV for qualification purposes only. There is an additional

qualification requirement of 2 Builder Legs and 2 Ace Royal or above Legs (Builder Leg with

at least one IBO qualifying as an Ace Royal or above in it). A Hero Elite qualifies for the

Retail Sales Bonus, Fast Start Bonus, Unilevel Bonus, the Star Elite Advancement Bonus, the

Development Bonus, the Ace Royal Advancement Bonus, the Turbo Infinity Bonus, as well

as Check Match.

1.11 Hero Royal rank is an IBO who has at least 800 PV and 90,000 DV in the

month of qualification. The Maximum Volume Rule will apply to DV, which states that only

up to half of the DV requirement (in this case 45,000 DV) will be counted from any single


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leg or from the Hero Royal’s own PV for qualification purposes only. There is an additional

qualification requirement of 1 Builder Leg and 3 Ace Royal or above Legs (Builder Leg with

at least one IBO qualifying as an Ace Royal or above in it). A Hero Royal qualifies for the

Retail Sales Bonus, Fast Start Bonus, Unilevel Bonus, the Star Elite Advancement Bonus, the

Development Bonus, the Ace Royal Advancement Bonus, the Turbo Infinity Bonus, as well

as Check Match.

1.12 Icon rank is an IBO who has at least 800 PV and 225,000 DV in the month of



the Icon’s own PV for qualification purposes only. There is an additional qualification

requirement of 3 Ace Royal or above Legs (Builder Leg with at least one IBO qualifying as

an Ace Royal or above in it) and 2 Hero or above Legs (Builder Leg with at least one IBO

qualifying as a Hero or above in it). At this leader rank, in order to qualify, at least once

every rolling twelve months, the Icon must help an IBO in his or her Personal Group in his

or her home country advance to the Ace Royal rank, qualify at that rank (or above) for at

least 3 consecutive months, and become the Icon’s new first generation. This rule is known

as the “NewGenQ” rule (New First Generation Qualified). An Icon qualifies for the Retail

Sales Bonus, Fast Start Bonus, Unilevel Bonus, the Star Elite Advancement Bonus, the

Development Bonus, the Ace Royal Advancement Bonus, the Turbo Infinity Bonus, Check

Match, as well as the Icon Bonus.

1.13 Icon Elite rank is an IBO who has at least 800 PV and 600,000 DV in the



leg or from the Icon Elite’s own PV for qualification purposes only. There is an additional

qualification requirement of 3 Ace Royal or above Legs (Builder Leg with at least one IBO

qualifying as an Ace Royal or above in it) and 2 Hero Elite or above Legs (Builder Leg with

at least one IBO qualifying as a Hero Elite or above in it). The NewGenQ rule applies to this

rank. An Icon Elite qualifies for the Retail Sales Bonus, Fast Start Bonus, Unilevel Bonus, the


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Star Elite Advancement Bonus, the Development Bonus, the Ace Royal Advancement

Bonus, the Turbo Infinity Bonus, Check Match, as well as the Icon Bonus.

1.14 Icon Royal rank is an IBO who has at least 800 PV and 1,650,000 DV in the



leg or from the Icon Royal’s own PV for qualification purposes only. There is an additional

qualification requirement of 3 Ace Royal or above Legs (Builder Leg with at least one IBO

qualifying as an Ace Royal or above in it) and 2 Hero Royal or above Legs (Builder Leg with

at least one IBO qualifying as a Hero Royal or above in it). The NewGenQ rule applies to this

rank. An Icon Royal qualifies for the Retail Sales Bonus, Fast Start Bonus, Unilevel Bonus,

the Star Elite Advancement Bonus, the Development Bonus, the Ace Royal Advancement

Bonus, the Turbo Infinity Bonus, Check Match, as well as the Icon Bonus.

2. INFINITY COMPENSATION PLAN BONUS PAYOUT

Only registered IBOs may participate in the Infinity Compensation Plan. Through Sunrider’s

compensation plan, IBOs may earn income through the sale of Sunrider® products. Bonuses

are designed to reward IBOs for their leadership, regular training, sales, and motivational

efforts.

Eligibility for bonuses will cease if:

1. An IBO makes any significant misrepresentation on the IBO Agreement or any

violation of the Sunrider® Business Guide, the Sunrider Code of Ethics, or the rules

governing the Business Plan programs; or

2. An IBO engages in or is responsible for cross-sponsoring or double sponsoring.

Sunrider reserves the right to address violations of these provisions on a case-by-case basis

to ensure that all recipients of bonuses manifest the true spirit of leadership for which


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these rewards are intended. Disciplinary action may include possible suspension from

compensation plan programs for up to six months or possible termination of the

Independent Business.

For sponsors to receive credit toward bonuses, new applications and all orders must be

entered on the Sunrider website by the last day of the calendar month.

2.1 Retail Sales Bonus

The Retail Sales Bonus is a combination of Personal Sales Commissions and Retail Profit.

Personal Sales Commissions and Retail Profit are paid on the net retail price excluding

taxes. IBOs will earn 5% Personal Sales Commissions on their total PV when their PV is

between 500-1,999 PV during the month of qualification. IBOs will earn 10% Personal Sales

Commissions on their total PV when their PV is between 2,000-4,999 PV in the month of

qualification. IBOs will earn 15% Personal Sales Commissions on their total PV when their

PV is 5,000 PV or greater in the month of qualification.

IBOs will also earn up to 10% Retail Profit on the sale of Sunrider® products depending on

whether the sale is to a Retail Customer or Preferred Customer.


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2.2 Fast Start Bonus

The Fast Start period begins when a person first enrolls as an IBO (the enrollment month)

and lasts for the enrollment month plus the 3 following months. During their Fast Start

period, IBOs with 250 PV or more of personal purchases in a month will receive $50 of

product credit for each new IBO they sponsor who personally purchases 250 PV or greater

in that month. During their Fast Start period, IBOs with 250 PV or greater in a month will

receive a free product (to be determined by the local Sunrider office in its sole discretion)

for each Preferred Customer that the IBO signs up with an Autoship order of $100 or

greater that same month.

Star Prime Advancement Bonus: an IBO who advances in rank for the first time to Star

Prime within his or her first month plus the month of enrollment will earn the Star Prime

Advancement Bonus of $50.

An IBO who sponsors a new IBO who advances in rank to Star Prime within his or her first

month plus the month of enrollment will earn a Matching Star Prime Advancement Bonus

of $50. The sponsoring IBO must also be qualified as a Star Prime or above during the

month of advancement in order to receive the matching bonus.

Star Elite Advancement Bonus: an IBO who advances in rank for the first time to Star Elite

within his or her first 3 months plus the month of enrollment will earn the Star Elite


An IBO who sponsors a new IBO who advances in rank to Star Elite within his or her first 3

months plus the month of enrollment will earn a Matching Star Elite Advancement Bonus

of $100. The sponsoring IBO must also be qualified as a Star Elite or above during the


Ace Advancement Bonus: an IBO who advances in rank for the first time to Ace within his

or her first 3 months plus the month of enrollment will earn the Ace Advancement Bonus

of $200.


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An IBO who sponsors a new IBO who advances in rank to Ace within his or her first 3 months

plus the month of enrollment will earn a Matching Ace Advancement Bonus of $200. The

sponsoring IBO must also be qualified as an Ace or above during the month of advancement

in order to receive the matching bonus.

Ace Prime Advancement Bonus: an IBO who advances in rank for the first time to Ace

Prime within his or her first 3 months plus the month of enrollment will earn the Ace Prime


An IBO who sponsors a new IBO who advances in rank to Ace Prime within his or her first 3

months plus the month of enrollment will earn a Matching Ace Prime Advancement Bonus

of $350. The sponsoring IBO must also be qualified as an Ace Prime or above during the


2.3 Ace Royal Advancement Bonus

When an IBO advances in rank to Ace Royal for the first time, that IBO will earn the Ace

Royal Advancement Bonus of $500.

The first upline of this IBO with the Career Title of Ace Royal or higher will receive a

Matching Ace Royal Advancement Bonus of $500 as long as that upline IBO also qualifies

as an Ace Royal or above during the month of advancement.

2.4 Unilevel Bonus

Active IBOs that are qualified as a Star or above in the month of qualification may receive

a percentage on the CV from the sales of their downline. The percentage they may receive

and the number of levels they will receive it on is based on their Paid-as Title during the

month of qualification.

The Unilevel Bonus will pay out according to the chart below and will pay out a maximum

of 5 levels deep. This bonus is capped at 23% of CV in the IBO’s home country in the month


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of qualification, and should the total bonus payout exceed the cap that month, this bonus

will be reduced proportionally that month.

2.5 Development Bonus

IBOs who qualify as Ace Prime or above during the month of qualification may earn the

Development Bonus in two different ways: Personal Group and First Generation. Bonus

payout is determined by downline Paid-as Title as well as the sponsoring IBO Paid-as Title

in the month of qualification. This bonus is capped at 2% of CV in the IBO’s home country

in the month of qualification, and should the total bonus payout exceed the cap that

month, this bonus will be reduced proportionally for that month.

Personal Group Development Bonus: IBOs who qualify for this bonus will earn a flat bonus

of $30, $60, OR $80 on EACH leg on IBOs within their personal group (Ace, Ace Prime,

and/or Ace Elite). The amount paid is based on the highest Paid-as Title IBO in each leg

within their personal group but will not exceed the bonus amount equal to the Pay-to IBO’s

own Paid-as Title. For example, if the sponsor IBO was Paid-as an Ace Prime and the highest

Paid-as Title within the IBO’s personal group in a specific leg was Ace Elite, the sponsor IBO

will receive the bonus amount for Ace Prime instead of Ace Elite for that leg.

1st Generation Leg Development Bonus: IBOs who qualify for this bonus will also earn a

flat bonus of $100 on EACH leg with a first generation Ace Royal or above in it, as long as

the IBOs qualify as Ace Royal or above in the month of qualification. IBOs who qualify as


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Ace Elite in the month of qualification will earn the $80 Ace Elite bonus payout on each leg

with a first generation Ace Royal or above in it. IBOs who qualify as Ace Prime in the month

of qualification will earn the $60 Ace Prime level bonus payout on each leg with a first

generation Ace Royal or above in it.

Paid-as Title of the Pay-on IBO

Monthly Fixed Bonus Paid to Ace Prime

and above

(2% Cap)

Ace $30

Ace Prime $60

Ace Elite $80

1st Generation ACE ROYAL and above

$100

2.6 Turbo Infinity Bonus

IBOs who qualify as a Hero or above in the month of qualification are eligible to receive this

bonus. The Turbo Infinity Bonus pays a percentage on all CV level 6 and below, going

infinitely deep. The percentage that an IBO may receive is based on their Paid-as Title

during the month of qualification. This bonus is capped at 3% of CV in the IBO’s home

country in the month of qualification, and should the total bonus payout exceed the cap

that month, this bonus will be reduced proportionally that month.

IBOs who qualify as Hero or above will receive a 0.5% Turbo Infinity Bonus payout on all

their CV from level 6 on down.


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2.7 Check Match

IBOs who are Paid-as Hero or above in the month of qualification are eligible to receive the

Check Match Bonus. Qualified IBOs will receive this bonus on their downline Career Title

Ace Royals and above (PayOn IBOs). This bonus is paid on a percentage of the downline’s

Fast Start Bonus, Unilevel Bonus, and Turbo Infinity Bonus payouts in the month of

qualification. The percentage of Check Match Bonus payout is based on the Paid-as Title of

the downline PayOn IBO in the month of qualification that the Check Match is being paid

on, but will not exceed the upline qualifying IBO’s Paid-as Title during the month of

qualification. The number of generations a qualifying IBO can earn Check Match on is based

on that qualifying IBO’s Paid-as Title during the month of qualification. There is a cap on

each Check Match a qualifying IBO may receive, which is based on the qualifying IBO’s Paid-

as Title during the month of qualification. This bonus is capped at 8% of CV in the IBO’s

home country in the month of qualification, and should the total bonus payout exceed the

cap that month, this bonus will be reduced proportionally for that month.

IBOs who qualify as a Hero will receive 18% on all their first generation Paid-as Heroes and

above, 15% on all first generation Paid-as Ace Royals, and 10% on any first generation

Career Title Ace Royals who do not qualify as an Ace Royal in the month of qualification.

There is a $1,000 per match cap on each downline check match.

IBOs who qualify as a Hero Elite will receive 20% on all their first and second generation

Paid-as Hero Elites and above, 18% on all first and second generation Paid-as Heroes, 15%

on all first and second generation Paid-as Ace Royals, and 10% on any first and second

generation Career Title Ace Royals who do not qualify as an Ace Royal in the month of

qualification. There is a $2,000 per match cap on each downline check match.

IBOs who qualify as a Hero Royal will receive 22% on all their first, second, and third

generation Paid-as Hero Royals and above, 20% on all first, second, and third generation

Paid-as Hero Elites, 18% on all first, second, and third generation Paid-as Heroes, 15% on

all first, second, and third generation Paid-as Ace Royals, and 10% on any first, second, and


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third generation Career Title Ace Royals who do not qualify as an Ace Royal in the month

of qualification. There is a $3,000 per match cap on each downline check match.

IBOs who qualify as an Icon will receive 25% on all their first through fourth generation

Paid-as Icons and above, 22% on all their first through fourth generation Paid-as Hero

Royals, 20% on all first through fourth generation Paid-as Hero Elites, 18% on all first

through fourth generation Paid-as Heroes, 15% on all first through fourth generation Paid-

as Ace Royals, and 10% on any first through fourth generation Career Title Ace Royals who

do not qualify as an Ace Royal in the month of qualification. There is a $4,000 per match

cap on each downline check match.

IBOs who qualify as an Icon Elite will receive 27% on all their first through fifth generation

Paid-as Icon Elites and above, 25% on all their first through fifth generation Paid-as Icons,

22% on all their first through fifth generation Paid-as Hero Royals, 20% on all first through

fifth generation Paid-as Hero Elites, 18% on all first through fifth generation Paid-as Heroes,

15% on all first through fifth generation Paid-as Ace Royals, and 10% on any first through

fifth generation Career Title Ace Royals who do not qualify as an Ace Royal in the month of

qualification. There is a $5,000 per match cap on each downline check match.

IBOs who qualify as an Icon Royal will receive 30% on all their first through sixth generation

Paid-as Icon Royals, 27% on all their first through sixth generation Paid-as Icon Elites, 25%

on all their first through sixth generation Paid-as Icons, 22% on all their first through sixth

generation Paid-as Hero Royals, 20% on all first through sixth generation Paid-as Hero

Elites, 18% on all first through sixth generation Paid-as Heroes, 15% on all first through sixth

generation Paid-as Ace Royals, and 10% on any first through sixth generation career title

Ace Royals who do not qualify as an Ace Royal in the month of qualification. There is a

$6,000 per match cap on each downline check match.


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2.8 Icon Bonus

IBOs who promote to the title of Icon or above for the first time will be eligible to receive

a one-time Icon Bonus. For each promotion, the bonus amount will be paid across multiple

consecutive months as long as the IBO is Paid-as the promoted title or higher. If an IBO is

not Paid-as the promoted title in one (or more) of the months that a payment would

normally be paid, that IBO will not receive that month’s pay out amount. Remaining

payments can still be earned but will be based on being Paid-as the promoted title or higher

in any of the remaining payment months.

When an IBO advances in rank to Icon for the first time, that IBO qualifies for the $10,000

Icon Bonus. This bonus is paid out at $2,000 a month over 5 consecutive months beginning

with the month of advancement as long as the IBO qualifies as an Icon or higher. If the IBO

does not qualify as an Icon or above in any of the following four months, the IBO will not

receive the bonus payout for each month he or she does not qualify.


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When an IBO advances in rank to Icon Elite for the first time, that IBO qualifies for the

$20,000 Icon Bonus. This bonus is paid out over 8 consecutive months at $2,500 a month

beginning with the month of advancement. If the IBO does not qualify as an Icon Elite or

above in any of the following 7 months, the IBO will not receive the bonus payout for each

month he or she does not qualify.

When an IBO advances in rank to Icon Royal for the first time, that IBO qualifies for the

$50,000 Icon Bonus. This bonus is paid out over 12 consecutive months at $4,666.67 a

month beginning with the month of advancement. If the IBO does not qualify as an Icon

Royal in any of the following 11 months, the IBO will not receive the bonus payout for each

month he or she does not qualify.

An IBO who advances from one Icon title to a higher Icon title during the first Icon Bonus’

payment period will be able to earn more than one Icon Bonus simultaneously.


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2.9 Responsibilities of Leaders

Ace Royals and above are Leaders who are most likely operating their Sunrider businesses

on a full time basis and earning a large income. Ace Royals and above are held to a higher

standard of integrity and responsibility because they are role models in the Sunrider

community and to their large organizations. Accordingly, Leaders and their spouses may

not participate directly or indirectly in another single-level direct selling, multi-level direct

selling, or other network marketing business, and must not engage in activities or other

businesses (regardless of the nature of the other business) which would conflict with or

may cause damage, loss, or harm to another IBO or to Sunrider. Sunrider customer and IBO

lists are for the sole purpose of operating a Sunrider Independent Business, and may not

be used to further any other business interest. Leaders must train their newly sponsored

downlines on how to grow their businesses and must conduct training meetings at least

once every three months (Leader must submit training schedule and proof of training

meetings upon request), and Leaders must maintain frequent contact with their downline

at least once per month (in person visits, meetings, emails, phone calls, etc.). It is a Leader’s

responsibility to insure that activities carried on by their downline conform to the rules of

the Business Guide and Code of Ethics; these frequent contacts and training sessions should

be used to help insure adherence to these rules. Leaders must provide recognition to their

downline to reward and acknowledge accomplishments. Failure to fulfill these Leader

responsibilities will result in penalties, including but not limited to loss of bonuses and

termination.

2.10 The Sunrider International Sponsor Leadership Program

IBOs who are Career Title Ace Royals and above in their home country may participate in

the Sunrider International Sponsor Leadership Program. They must have qualified at Ace

Royal or above for at least two consecutive months; thereafter, qualifying IBOs should

contact their country manager for approval and to inform them of their desire to begin

sponsoring internationally. Once approved, they must receive an orientation by Sunrider


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staff in the other country. Such orientation allows international sponsors to understand the

nuances of the compensation plan in the other country and the related rules of doing

business in the other country. After completing their orientation, Ace Royals and above

may begin sponsoring internationally and must train their international downlines in

accordance with Sunrider’s current guidelines and procedures in the foreign country.

Downline training will include the use of Sunrider-produced promotional materials and

conducting training and sales meetings. International Sponsors should hold regular

trainings as a Leader via phone, email, conference calls, webinars, or in-person as needed

and appropriate (please see 2.10 Responsibilities of Leaders above).

As a seamless global plan designed to reward leaders for developing stable organizations,

QV from a foreign country (which is not currency specific) will help the IBO’s qualification

requirements, while all sales in the foreign country will be based on CV (which is currency

specific). At the end of each qualification month, bonuses from the CV of the foreign

country will be converted into the IBO’s home currency based on the published currency

conversion rates. Please check with your local IBO Business Service Department at (310)

781-3808 for the applicable conversion rates. Please remember that newly promoted

international Ace Royals will not fulfill the NewGenQ requirement, which requires Icons

and above to promote someone in their personal group in their home country at least once

every 12 months to Ace Royal, who then qualifies at that rank (or above) for at least 3

consecutive months.

Should an international sponsor fail to qualify at Ace Royal or above, any DV from that

sponsor’s international legs will continue to count towards the international sponsoring

IBO’s DV for qualification purposes only; the international sponsor will earn only the Retail

Sales Bonus (based on PV) on international legs in the month the international sponsor

does not qualify at Ace Royal or above. All local caps will still apply to bonuses paid on or

derived from international sales.


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2.11 Payment of Commissions and Bonuses

Bonus checks are issued once a month and are typically mailed to IBOs on the 20th of the

following month.

IBOs should review each bonus recap statement immediately and report any discrepancies

within 20 days of receipt. IBOs can review bonus recap statements online at the Business

Center on the Sunrider website (business.sunrider.com).

If an IBO has not received a check within 15 days from the date the check should have been

issued, the IBO should contact the Business Service Department. The Business Service

Department will arrange to issue a replacement check if the original check is not located.

If an IBO fails to either report a lost check or request a re-issuance of a missing bonus check

between six and twelve months after the check issue date, Sunrider will assess a $25 charge

to issue a replacement check.

If an IBO fails to report a lost check, fails to request a new bonus check, or fails to cash a

bonus check after twelve months from the check issue date, Sunrider will cancel the check

and will not issue a replacement check.

2.12 Recognition

A Certificate of Achievement will be awarded to all Star Elite and above when they first

qualify at a new rank.

At Sunrider’s Annual Grand Convention, newly qualified first time Ace Royals and above

will receive special recognition on stage. All Heroes and above will receive special

recognition at Sunrider’s Annual Grand Convention for achieving and/or continuing to

qualify at the new rank during the qualification period.

Ace Royals and above are recognized in the SunWriter Magazine on the Sunrider website.

Recognition in the magazine is according to the rank achieved.


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SECTION 2: RULES, POLICIES, AND PROCEDURES

1. ESTABLISHING, DEVELOPING, AND OPERATING AN INDEPENDENT BUSINESS

1.1 Initial Qualifications

In order to become an authorized Independent Business Owner (IBO), an individual

applicant must be at least 18 years of age, fully complete and submit the IBO Application

and Agreement, and purchase a Starter Pack. The applicant must have a complete mailing

address in the United States or its territories and a valid tax identification number. IBOs

may not have the same mailing address as another IBO. The applicant must also possess,

maintain, and be familiar with the current Sunrider® Business Guide. Authorization to

distribute Sunrider® products and to participate in the compensation plan is effective on

the day Sunrider emails the applicant notice of acceptance of the IBO Application and

Agreement. IBOs are required to pay an annual $59 renewal fee beginning on their first

anniversary date, which will be automatically charged to the IBOs credit card on file at the

IBO’s anniversary date. If an IBO no longer wishes to be a Sunrider IBO and participate in

the compensation plan, they may cancel at any time. If an IBO cancels their account within

60 days of paying the renewal fee only, the renewal fee will be reimbursed in full.

An individual may not participate in more than one IBO account. A spouse of an IBO who

wishes to join will be included as part of the IBO’s account and may not open a separate

IBO account. An applicant may not own all or part of any other IBO account either

individually or jointly, nor participate as a partner, owner, shareholder, trustee, officer,

manager, director, association member, or beneficiary or have any other legal or beneficial

interest in another IBO account.

The key to building a successful Independent Business is the sale of Sunrider® products.

Sunrider requires that all IBOs understand the “personal network philosophy,” which refers


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to the requirement that IBOs build their Independent Business by personal contact with

prospective customers and IBOs. IBOs will have the opportunity to sponsor, train, and

motivate others to become IBOs. Sponsoring requires IBOs to introduce prospects to

Sunrider® products and literature, to train or make training available to prospective IBOs,

and to maintain an ongoing dialogue with prospective IBOs by answering questions and

responding to concerns. By signing the IBO Application and Agreement, IBOs represent that

they understand the personal network philosophy and intend to build a business based on

this philosophy.

1.2 Independent Business Relationship

IBOs are independent contractors with Sunrider. Under no circumstances (including for tax

purposes) shall IBOs be considered agents or employees of Sunrider.

IBOs shall not represent that they have an employment relationship with Sunrider or any

Sunrider affiliate. IBOs shall not make any purchases or enter into any transactions in

Sunrider’s name. As indicated in the compensation plan, IBOs may be assigned certain rank

designations, such as “Ace Royal” and “Hero Elite.” These designations do not establish an

employment or managerial relationship with Sunrider and only indicate the type of

commissions, bonuses, and sales incentives for which IBOs may be eligible. IBOs may not

publicly refer to themselves by such terminology or rank designations and may not use such

terminology or rank designation on their own stationery, business cards, or other printed

or electronic material. IBOs shall not refer to themselves as “agents” or “company

representatives” and shall only refer to themselves as Independent Business Owners or

IBOs.

IBOs set their own hours and determine their own methods of sale, as long as the methods

of sale comply fully with the Sunrider® Business Guide. IBOs shall be responsible for all costs

of conducting their business. IBOs accept sole responsibility for all self-employment and

income taxes due on commissions, bonuses, and incentives earned as IBOs.


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IBOs shall be responsible for complying with all laws, including tax laws, in the country in

which they reside and/or operate their Sunrider business. If local law requires IBOs to

obtain a business license or seller’s permit, they must check with the appropriate

authorities to ensure full compliance with applicable laws.

Sunrider must report to the Internal Revenue Service (IRS) all payments to individual IBOs

of $600 or more per calendar year. Sunrider will provide a copy of IRS form 1099 to each

IBO who has been paid $600 or more per year. Sunrider will deduct withholding taxes from

commissions, bonuses, and incentives paid to individual IBOs who are nonresident aliens.

A valid social security or taxpayer identification number must be provided to Sunrider for

tax reporting purposes. IBOs should consult with their tax advisor with respect to IRS tax

reporting requirements.

Sunrider charges sales/use tax based on the tax rate at the location where the goods are

delivered to the IBO. Sunrider collects sales tax based on the prevailing regulations in each

state.

Sunrider will accept valid resale certificates from IBOs for sales tax purposes. When IBOs

with valid resale certificates resell products, they will be responsible for the sales tax on

the resale. They may also be responsible for use tax for products that they consume.

In the event that IBOs without valid resale certificates resell products, they may be

responsible for the difference between the tax collected by Sunrider and the additional

sales tax due on the resale price. IBOs should consult with a tax advisor regarding sales and

use tax reporting requirements.

1.3 Financial Representations to Prospective Independent Business Owners

IBOs must tell prospective IBOs that success under the Sunrider Infinity Compensation Plan

requires the expenditure of significant time and effort. IBOs must explain that the retail

sale or marketing of products is an essential element of the Sunrider Compensation Plan


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and that IBOs will not be successful merely by recruiting others into the business without

regard to sales of products.

IBOs shall not make any guarantee of income of profits. IBOs must not misrepresent actual

or potential sales, earnings, or profits, or make any undocumented, deceptive, misleading,

or illegal earnings claims. IBOs should share Sunrider’s Income Disclosure Statement with

prospective IBOs.

IBOs should use only current marketing materials produced by Sunrider and must ensure

that each prospective IBO receives a copy of the most current version of the Sunrider®

Business Guide.

1.4 Limitations on Product Claims and Representations

IBOs shall only make any representations regarding Sunrider® products or programs that

are complete, accurate, and truthful. IBOs shall not distort or misrepresent the quality,

purpose of, or benefits that may be received by consuming Sunrider® products. Sunrider®

products are not intended for use in the diagnosis, cure, mitigation, prevention, or

treatment of any medical condition. IBOs shall not represent or make any statement to

the contrary.

IBOs, unless licensed to do so, shall not diagnose or treat illness or other physical, mental,

or emotional conditions.

IBOs shall not state that any governmental agency or authority has approved or endorsed

Sunrider’s products or programs unless Sunrider has made the statement.

1.5 No Purchase Requirements

IBOs may not require or harass others to:

1. Purchase a specific amount of product;


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2. Maintain a minimum inventory;

3. Purchase a non-Sunrider produced pack or kit;

4. Purchase tapes, literature, audio-visual aids, or other materials;

5. Participate in any ongoing activities that require the purchase of products or

programs; or

6. Purchase tickets for and/or attend or participate in rallies, seminars, or other

meetings.

1.6 Training New Independent Business Owners

Sponsoring IBOs must provide training or make training available to every new IBO that

they sponsor. While in-person training is encouraged, it may not always be practical.

Therefore, training via phone, email, webinars, or the like is acceptable.

1.7 Sponsorship Restrictions

IBOs are introduced to Sunrider their sponsor. Immediate sponsorship changes are

generally not allowed. IBOs who are not active for a 12 month period will automatically be

terminated and converted to customers. Former IBOs may sign up again as a new IBO and

may sign up under a new sponsor only if they have not been engaged in any Sunrider

business activity for 6 months if their Career Title was Ace Elite or below, or for 12 months

if their Career Title was Ace Royal or above.

However, occasionally and under certain circumstances, Sunrider may grant an IBO’s

request for a change of sponsor without requiring the IBO to be inactive for the applicable

term of months.

IBOs who feel that a sponsor change is necessary because their sponsor is in violation of

the Sunrider® Business Guide and/or company policies should contact Sunrider’s Business


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Service Department and submit all pertinent information in writing. Sunrider will review

the request, investigate the matter, and in its sole discretion determine whether or not to

grant the request for a sponsor change.

Should Sunrider grant the request for a sponsor change, Sunrider may implement the

sponsor change by changing the IBO’s sponsor to the next qualified upline IBO or by placing

the IBO directly under Sunrider until an appropriate new sponsor is selected. Sunrider will,

at its sole discretion, determine how the sponsor change will take place, determine who

will be the new sponsor, and determine whether to move solely the IBO making the request

for a sponsor change or move that IBO’s entire downline organization with them.

1.8 Cross Organization Activity/Double Sponsoring

Independent Business Owners shall not engage in cross organization activity/double

sponsoring. Double sponsoring occurs when an existing IBO signs up under a different

sponsor or when an IBO operates two Independent Businesses simultaneously. These

prohibitions against double sponsoring also apply internationally.

In order to minimize the possibility of double sponsoring, IBOs’ immediate family members,

including parents and siblings, should all be in the same line of descent. Sunrider reserves

the right to position IBOs’ immediate family members in the same sales organization.

The sponsor must insure that a violation of Sunrider’s strict double-sponsoring rules has

not occurred. Double sponsoring does not occur when IBOs seek to sponsor:

1. Former IBOs whose accounts were terminated by Sunrider for inactivity; or

2. Former IBOs whose accounts were voluntarily terminated more than six months

(for Career Title Ace Elite or below) or twelve months (for Career Title Ace Royal or

higher) prior to the new sponsorship.


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Former IBOs who had voluntarily terminated for more than the designated period (six

months for Career Title Ace Elite or below or twelve months for Career Title Ace Royal or

higher) may not recruit or cause their original downline members to voluntarily terminate

for the designated period and then sign up under the former IBO in their new sales

organization as this would be considered to be a violation of these cross organization

activity guidelines.

Recruiting an existing IBO by coercing them to terminate their account, and then having

them (or someone in their family or immediate household) sign up again under the

recruiting IBO will be considered a violation of these cross organization activity guidelines.

Buying and selling existing Independent Businesses or any other actions or transactions

designed to circumvent these cross organization guidelines are strictly prohibited.

A party harmed by an alleged act of cross organization activity/double sponsoring must

notify Sunrider within one year of the commencement of the alleged act. When a claim is

made, Sunrider will conduct an investigation. At the conclusion of the investigation,

Sunrider will determine, in its sole discretion, the appropriate disciplinary actions to

impose, if any, including but not limited to the following:

1. Issue warnings to the sponsored IBO and to their new upline;

2. Place the sponsored IBO on probation;

3. Enforce mandatory repayment of improperly earned commissions to the original

sponsor. The amount of the repayment may be up to one-half of the IBO’s total

commission payout for up to six months;

4. Relocate the sponsored IBO’s newly developed sales organization under the original

sponsor;

5. Suspend the Independent Business for such term as Sunrider deems appropriate;


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6. Terminate the Independent Business; and

7. Any other remedy that, in Sunrider’s sole discretion, serves the underlying purpose

of the policy against double sponsoring.

1.9 Cross-Sponsoring (Conducting Other Businesses)

IBOs shall not engage in cross-sponsoring. Cross-sponsoring occurs when an IBO directly or

indirectly solicits or influences current IBOs and/or their downlines to join, participate in,

sell, purchase, or promote the products or services of a competing business. Competing

businesses include, but are not limited to, single-level direct selling, multi-level direct

selling, network marketing, or franchise businesses.

IBOs who are regularly engaged in the operation of another business, such as a retail

establishment or a professional service, may provide products and/or services to clients

who are IBOs or their downlines only if the contact was initiated by those IBOs.

Cross-sponsoring causes economic harm to Sunrider and its IBOs when IBOs and/or their

downlines are influenced to participate in, join, sell, purchase, or promote a competing

company's products or services. This rule protects each IBO's business from competing

companies.

Conduct by IBOs in violation of these rules against cross-sponsoring constitutes

unwarranted and unreasonable interference with the actual and prospective contractual

relationships between Sunrider and its IBOs. Such conduct will subject IBOs to disciplinary

action in Sunrider's sole discretion, including the possible loss of bonuses and the

suspension or termination of their Independent Business.


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1.10 Operating as a Corporation, Partnership, Trust, or Other Business Entity

An Independent Business may be operated through a corporation, partnership, trust, or

limited liability company, subject to the following requirements:

1. The applicant must submit a completed IBO Agreement and Agreement for Doing

Business in a Form Other Than an Individual to Sunrider’s Business Service

Department;

2. All officers, directors, shareholders, partners, managers, members, trustees,

successor trustees, owners, or other individuals having a legal or beneficial interest

in the Independent Business must agree in writing to be bound by and operate the

Independent Business in full compliance with the Sunrider® Business Guide;

3. The signatures of all officers, partners, and trustees on the IBO Agreement must

be notarized;

4. A copy of the articles of incorporation, articles of organization, or the trust

instrument, together with all amendments, must accompany the IBO Agreement;

5. The corporation, partnership, trust, or limited liability company shall notify

Sunrider’s Business Service Department in writing within ten days of any change in

ownership or management or any amendments that vary the terms of the business

entity. Any change in ownership or management (ie changes in officers, directors,

shareholders, partners, managers, members, trustees, successor trustees, owners,

or other individuals having a legal or beneficial interest in the Independent

Business) shall be subject to the notice and approval provisions applicable to the

sale of an Independent Business set forth below, and the Independent Business

shall file a new IBO Application and Agreement for Doing Business in a Form Other

Than an Individual after receiving written approval to do so from Sunrider. All new

officers, directors, shareholders, partners, managers, members, trustees,


35

successor trustees, legal or beneficial owners, and other individuals having a

managerial or supervisory role in the entity shall sign the new IBO Agreement;

6. Regardless of the actual ownership structure of the individual Independent

Business , all correspondence or inquiries with respect to the Independent Business

should be made using the first applicant’s name and identification number; and

7. In order to operate an Independent Business as a trust or transfer an Independent

Business to a trust, all beneficiaries of the trust must be individuals, the trust

instrument must not permit the beneficiaries to assign any beneficial interest in the

trust, and the creator of the trust must be a qualified and authorized IBO at the time

the Independent Business is transferred to the trust.

To insure the integrity of the Sunrider Infinity Compensation Plan, Sunrider may, in its sole

discretion, require an Independent Business operating as a business entity to change or

modify its management or ownership structure to ensure compliance with the terms and

policies of the Sunrider® Business Guide.

The transfer of an Independent Business to a trust or other business entity without the

prior written authorization of Sunrider shall constitute an unauthorized assignment in

violation of the Sunrider® Business Guide, and shall be considered void by Sunrider.

Any violation of the Sunrider® Business Guide by the Independent Business or any of its

officers, directors, shareholders, partners, managers, members, trustees, successor

trustees, legal or beneficial owners, or their employees, agents, or other individuals

working for or on their behalf, will subject the IBOs to disciplinary action, at Sunrider’s sole

discretion, including but not limited to the possible loss of bonuses and the suspension

and/or termination of the Independent Business.


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1.11 Husband and Wife Partnerships

If a husband and wife desire to become IBOs, they must do so as a single Independent

Business. Husbands and wives (i) cannot be sponsored in different lines of descent; (ii)

cannot sponsor each other; and (iii) cannot maintain separate Independent Businesses. If

one spouse is already an IBO and the other spouse desires to become an IBO, the spouse

who wishes to become an IBO must join the other spouse’s existing Independent Business.

Spouses operate their Independent Business as a single entity, whether or not both

spouses’ names appear on the IBO Agreement. Each spouse is accountable for the actions

of the other with respect to compliance with the Sunrider® Business Guide. When both

husband and wife participate in the Independent Business, one spouse’s signature on the

IBO Agreement constitutes a representation that the other spouse has agreed to comply

fully with the terms and conditions of the Sunrider® Business Guide.

If two IBOs decide to marry, one spouse must surrender their Independent Business by sale

or relinquishment and become a partner in their spouse’s Independent Business within

one-hundred eighty days of the marriage. If the sale option is chosen, the sale must be

completed pursuant to the Sale of Independent Business guidelines below, or the

Independent Business will be deemed to be relinquished. If an Independent Business is

relinquished, the Independent Business’s downline will not roll up to the next qualified

upline IBO but will maintain its existing level in the downline. Sunrider reserves the right to

decide all disputes or unresolved issues in its sole discretion, including the determination,

if necessary, of which spouse’s Independent Business will be deemed relinquished.

1.12 Pricing, Ordering, Packaging, Labeling, and Selling

Independent Business Owners are required to sell Sunrider® products to third parties. Price

Cutting is not allowed. IBOs are authorized to set their own retail sales prices; however,

they must adhere to the following rules:


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1. Not sell products below the Sunrider Retail Price.

2. Not sell products at a discounted price below the Sunrider Retail Price to any

customer who is not a Preferred Customer or to IBOs who offer discounted sales to

customers who are not Preferred Customers. Failure to comply will result in a

warning letter from Sunrider and possible suspension or termination.

3. Insure all product orders are placed with Sunrider on designated forms in the

manner that is established by Sunrider. Sunrider may, at its sole discretion, reject

any order placed by an IBO.

4. Not re-package or re-label any Sunrider® product. This helps ensure that our

product labeling remains in compliance with all applicable laws and regulations

regarding packaging and labeling.

5. Not sell or ship Sunrider® product outside of the IBO’s home country.

6. Not sell Sunrider® products to someone in another upline or downline.

Each IBO shall make at least five sales to consumers each month. For purposes of this

provision, a sale means a sale of product to an individual or entity that is not an IBO. When

an IBO makes a sale to a customer that exceeds $25, applicable consumer protection law

entitles the customer to cancel the transaction at any time within three business days from

the date of purchase. IBOs must provide all customers two copies of the Sunrider Customer

Sales Receipt (or another sales receipt which contains all information contained within the

Sunrider Customer Sales Receipt), which contains the necessary language regarding the

purchaser’s cancellation rights. In addition to using a Customer Sales Receipt, IBOs must

also orally inform purchasers of their cancellation rights. IBOs must keep the fully filled out

third copy of the Sunrider Customer Sales Receipt in their records for at least 90 days and

present receipts to Sunrider if requested during an audit.


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In addition, each IBO is required to certify that at least 70% of the total amount of Sunrider®

products acquired during the previous sixty days has been sold to an end consumer (Retail

Customer or Preferred Customer).

Sunrider reserves the right to audit all IBOs to ensure that they are complying with this rule.

When audited, IBOs will be required to produce complete and accurate retail receipts and

sales records to show that product has been sold to end consumers in the IBO’s home

country. Failure to comply with a Sunrider audit or failure to produce complete, accurate,

and honest retail receipts and sales records may result in temporary or permanent

suspension of the IBO’s account.

1.13 Retailing Restrictions

Independent Business Owners must not sell or display, nor permit to be sold or displayed,

Sunrider® products or product literature in any retail store, except a store that is personally

owned and operated by the IBO. The personally owned and operated retail establishment

may sell Sunrider® products if the Sunrider® products are ordered and acquired directly

from Sunrider and are shipped by Sunrider directly to the retail establishment.

IBOs must not sell Sunrider® products or literature in mail order catalogs, at outdoor or flea

markets, on home shopping channels/networks, on Non-Sunrider approved websites, on

Internet stores, on Internet auction sites, through Internet classified ads, or anywhere else

on the Internet. IBOs may sell Sunrider® products or literature using approved Sunrider IBO

Pages pursuant to the Sunrider on the Internet guidelines below. The approved Sunrider

IBO Pages may list Retail Prices for products but must not list discounted prices of Sunrider®

products.

IBOs must comply with all applicable State and Federal laws and regulations regarding

telephone and fax solicitations. IBOs are not authorized to engage in telemarketing

activities. IBOs must not use any form of automatic calling devices, prerecorded or artificial


39

voice messages, or blast fax/bulk fax programs in connection with their Independent

Business.

IBOs are not authorized to sell or ship product to customers outside of the IBO’s home

country. And IBO’s account may be audited at any time by Sunrider to ensure compliance

with the rules of the Business Guide, including the limitation of selling within an IBO’s home

country. During an audit, an IBO will be required to provide complete and accurate retail

receipts and sales records to Sunrider to show compliance with these rules.

1.14 Advertising, Intellectual Property, and Proprietary Information

Sunrider’s intellectual property rights, including but not limited to, trademarks,

tradenames, copyrighted materials, logos, distinctive phrases or marks, and the given or

family names and images of Sunrider’s principals (collectively referred to as “Sunrider

Intellectual Property”), wherever they appear and in whatever form, are owned exclusively

by Sunrider or its principals. Use of Sunrider Intellectual Property must comply with the

Sunrider® Business Guide. IBOs may not directly or indirectly use or permit others to use

Sunrider Intellectual Property in any manner that infringes upon the rights of Sunrider. Any

express authorization from Sunrider to use any Sunrider Intellectual Property shall not

constitute a grant of license by Sunrider and does not give IBOs any rights to any Sunrider

Intellectual Property. IBOs shall not acquire any right to any goodwill or Sunrider

Intellectual Property by reason of their relationship with Sunrider or their sale of Sunrider®

products.

Sunrider Proprietary Information includes, but is not limited to, IBO lists (including

downline and upline lists), customer lists, manufacturing procedures, formulas, product

development, marketing techniques, prices and pricing strategies, bonus and incentive

programs, all operating, financial, and marketing materials, and Sunrider Intellectual

Property (collectively referred to as “Sunrider Proprietary Information”). Any Sunrider

Proprietary Information that IBOs have acquired in the course of operating an Independent


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Business is confidential and proprietary to Sunrider, is intended for the exclusive use of

Sunrider and its authorized IBOs, is for the sole purpose of furthering Sunrider’s business,

and may be used or disclosed only in strict accordance with the Sunrider® Business Guide.

Business cards that contain Sunrider Intellectual Property, including the Sunrider IBO logo,

must be reviewed and approved in advance by Sunrider.

IBOs may not create or use Non-Sunrider Produced marketing, promotional, or training

materials that have not been first approved by Sunrider. “Non-Sunrider Produced

Materials” are any promotional or training materials or items (including without limitation

written materials, emails, content in any audio, video, or electronic format, websites, blogs,

or other Internet content in any form) created by IBOs or others and not by Sunrider. If

IBOs wish to use their own Non-Sunrider Produced Materials, they must submit an online

compliance form (found at business.sunrider.com) and receive written authorization from

Sunrider.

When creating Non-Sunrider Produced Materials on the Internet, websites, and blogs, IBOs

must insure that the Non-Sunrider Produced Materials do not duplicate the look and feel

of any Sunrider Website, nor imitate any Sunrider Website in any manner that is misleading

or gives the impression that the IBO website is an official Sunrider Website. IBOs may use

the Sunrider IBO logo on their Non-Sunrider Produced Materials provided that the IBOs

have submitted the Non-Sunrider Produced Materials to Sunrider for review and have

received confirmation that these materials adhere to Sunrider’s current guidelines. IBOs

may not use any Sunrider logos, including modified Sunrider logos or any logos that are

similar to Sunrider logos, other than the Sunrider IBO logo in their Non-Sunrider Produced

Materials, except as stated below. IBOs must submit Non-Sunrider Produced Materials to

Sunrider for review before distributing or publishing these materials, whether or not these

materials contain Sunrider Intellectual Property, to ensure that these materials adhere to

Sunrider’s current guidelines.


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IBOs may not sell, directly or indirectly, Non-Sunrider Produced Materials that contain

Sunrider Intellectual Property. IBOs may sell Non-Sunrider Produced Materials not

containing Sunrider Intellectual Property to anyone except current or prospective IBOs or

Members.

When creating Non-Sunrider Produced Materials, IBOs must:

1. State that they are an “Independent Business Owner” and not state or imply that

they are an employee or agent of Sunrider;

2. Use Sunrider pre-approved formats for business cards, including the Sunrider logo,

which may not be altered or modified in any manner;

3. Not use the Sunrider corporate or manufacturing addresses;

4. Not duplicate, publish, distribute, reproduce, or transmit Sunrider Intellectual

Property in any form or by any means, in whole or in part, without the prior written

consent of Sunrider;

5. Not use Sunrider Intellectual Property as part of their business name, an Internet

domain name, blog address, online profile, avatar, email address, or other online

identity;

6. Not use Sunrider Intellectual Property without the appropriate trademark symbols;

7. Not engage in any advertising that is false, misleading, defamatory, libelous,

disparaging, offensive, threatening, harassing, abusive, obscene, or pornographic,

or that violates any applicable law or regulation, inhibits others from using or

viewing Sunrider Websites, or otherwise portrays Sunrider in a negative light; and

8. Not distort or misrepresent the quality or purpose of Sunrider® products. Sunrider®

products are not intended for use in the diagnosis, cure, mitigation, prevention, or


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treatment of any medical condition and IBOs shall not represent or make any

statement to the contrary.

IBOs should immediately inform Sunrider of any improper use of Sunrider Proprietary

Information. IBOs engaging in unauthorized advertising, marketing, statements, or

representations about Sunrider® products will be subject to disciplinary action at Sunrider’s

sole discretion, including but not limited to loss of bonuses, suspension, and/or termination

of the Independent Business.

For violations of these provisions, Sunrider shall be entitled to monetary relief, recoverable

attorney’s fees, injunctive or other equitable relief, and any and all other legal

remedies. Immediately upon expiration, termination, or cancellation of an Independent

Business, the affected IBO will remove, destroy, discontinue use of, and if requested by

Sunrider, return all Sunrider Proprietary Information to Sunrider.

The provisions of this section of the Sunrider® Business Guide shall survive the termination,

cancellation, or non-renewal of the Independent Business.

1.15 Sunrider on the Internet

The Sunrider corporate website is located at www.sunrider.com. IBOs and guests may click

on the appropriate links on the Sunrider corporate website to receive the latest

information on Sunrider’s various business enterprises, history, publications, awards &

honors, good works, news, products, worldwide offices, and IBO benefits.

The Sunrider Business Center, Sunrider Office, Sunrider University, and iStore (Shop

Online) are designed for IBOs to purchase products and manage and develop their

business. IBOs can enter the Business Center website to view downline activity, obtain

bonus recap statements, view the Sunrider® Business Guide, and change addresses or

telephone numbers. Sunrider also operates websites and blogs on other Internet domain

names, all collectively referred to as “Sunrider Websites.” For further information on

http://www.sunrider.com/


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Sunrider Internet policies and the many benefits of the Sunrider Websites, please contact

the Sunrider Business Service Department.

Sunrider offers IBOs the opportunity to build their own individual websites, called Sunrider

IBO Pages. These Sunrider IBO Pages are designed, hosted, and powered by Sunrider and

are an efficient, cost-effective way to introduce Sunrider to potential IBOs all over the

world. Sunrider authorizes IBOs with Sunrider IBO Pages to directly link to any Sunrider

Website. When purchasing products from the “Shop Online” link on a Sunrider IBO Page,

the amount of products purchased and the corresponding PV amount is automatically

calculated by Sunrider. IBOs must not “frame” a Sunrider IBO Page and must not redirect a

domain name to a Sunrider IBO Page.

Non-Sunrider approved websites include, but are not limited to, IBO’s websites not hosted

by Sunrider, blogs, social media sites, and online profiles. IBOs are authorized to utilize

Non-Sunrider approved websites to promote their Sunrider business and may provide links

from their Non-Sunrider approved websites to their Sunrider IBO Page and the Sunrider

Websites. Non-Sunrider approved websites may reproduce and reference content relating

to Sunrider history, product information, Sunrider news, Sunrider good works, Sunrider

awards, Sunrider photographs of products and facilities, and other company information

found in current Sunrider marketing materials or on non-password protected areas of

official Sunrider Websites, provided that all requirements below are met. Sunrider does not

permit IBOs to sell its products on Non-Sunrider approved websites (including third party

websites such as ebay, Amazon, and the like). All content on Non-Sunrider approved

websites must meet all requirements below.

All Non-Sunrider approved websites must:

1. Not use Sunrider Intellectual Property in any website content that is not clearly

displayed or viewable (including, but not limited to, hidden text, commented text,

or meta tags);


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2. Not have any password and/or user protected areas. All content and sections of a

Non-Sunrider approved website must be visible and accessible to anyone without

requiring user registration or authentication;

3. Insure that discussion forums and other third party comments are moderated and

negative or inappropriate content is deleted from the Non-Sunrider approved

website. IBOs must promptly comply with any requests by Sunrider to delete

negative or inappropriate content from the Non-Sunrider approved website;

4. Not use or link to any other Sunrider-produced multimedia, animations, sounds, or

videos. IBOs who create a Non-Sunrider approved website may use the exact

language, photographs, and graphics contained in Sunrider’s most current

marketing materials that are available to the general public and are not password

protected;

5. Not duplicate the look and feel of any Sunrider Website, nor imitate any Sunrider

Website in any manner that is misleading or gives the impression that the website

is official or otherwise sanctioned by Sunrider;

6. Not “frame” a Sunrider IBO Page or any Sunrider Website;

7. Not disclose complete product ingredient lists;

8. Clearly state that the site is that of an IBO;

9. Not use Sunrider Intellectual Property as part of their business name, an Internet

domain name, blog address, online profile, avatar, email address, or other online

identity;

10. Not use any Sunrider logos, including modified Sunrider logos or any logos that are

similar to Sunrider logos, other than the Sunrider IBO logo, in their Non-Sunrider

Produced Materials;


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11. Promptly comply with any requests by Sunrider regarding search engine positioning

so that Internet search engines list Sunrider’s Websites as the top search results

when an Internet user searches for “Sunrider” or any of Sunrider’s product names

or trademarks;

12. Be submitted to Sunrider for review by completing the online form at

http://business.Sunrider.com/CustService/webcompliance.asp. The IBO will be

notified of the results of the review and any required modifications. Failure to

submit and make requested modifications to Non-Sunrider approved websites

constitutes a violation of the Sunrider® Business Guide; and

13. Continue to comply with the terms of the Sunrider® Business Guide after receipt of

the results of the initial review by Sunrider. Modifications, changes, additions,

and/or updates to the content of approved Non-Sunrider approved websites must

be submitted to Sunrider for review and failure to do so constitutes a violation of

the Sunrider® Business Guide. IBOs may utilize pay for placement listings on online

search engines or directories, including use of Sunrider trademarks or product

names as long as their use does not conflict with the rules above or in this Sunrider®

Business Guide, for their Sunrider IBO Pages and Non-Sunrider approved sites. All

pay for placement listings must comply with the terms of the Sunrider® Business

Guide, must list the IBO’s domain name, and must not use “Sunrider.com” or other

Sunrider domain name. Prior to listing online, the content of all pay for placement

listings must be submitted to Sunrider for review by completing the online form at

http://business.Sunrider.com/CustService/webcompliance.asp. Sunrider actively

monitors Internet search engine results for its trademarks and product names. IBOs

shall not use any improper methods of search engine manipulation (e.g.,

spamdexing) to artificially boost the presence of their website in search engine

results.

http://business.sunrider.com/CustService/webcompliance.asp


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IBOs should report any potential violation of the terms of this section by completing the

online form at http://business.Sunrider.com/CustService/webcompliance.asp.

Sunrider takes no responsibility for the content or information posted on Non-Sunrider

approved websites. Sunrider disclaims any and all liability arising out of or related in any

way to IBO Non-Sunrider approved websites. IBOs will be held responsible for their Internet

marketing activities, including liability for harm caused by these activities.

Sunrider may monitor the Internet and may review previously submitted Non-Sunrider

approved websites to ensure continued compliance with the Sunrider® Business Guide.

Violations of the Internet policies, including but not limited to the policies regarding Non-

Sunrider approved websites, shall subject IBOs to disciplinary action in Sunrider’s sole

discretion, including the possible loss of Bonuses and Benefits and the suspension or

termination of their Independent Business.

1.16 Sunrider Anti-Spam Policy

Sunrider understands the importance of the Internet and allows IBOs to use the Internet

to enhance their business opportunities. However, Sunrider prohibits the transmission,

distribution, or delivery of any unsolicited bulk or commercial email that does not comply

with applicable State and Federal laws and regulations (Spam).

IBOs who send or cause to be sent emails must insure that the email includes their physical

mailing address, must clearly and conspicuously disclose that the email is an advertisement

or solicitation, and must provide a functioning “opt-out” notice that allows the recipient to

refuse future email correspondence. IBOs must honor all opt-out requests within 10

business days of receiving the request.

In addition, IBOs may not send or cause to be sent emails that:

1. Use or contain invalid or forged headers;


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2. Use or contain invalid or non-existent domain names;

3. Employ any techniques to otherwise misrepresent, hide, or obscure any

information in identifying the point of origin or the transmission path;

4. Use deceptive addressing;

5. Use a third party's Internet domain name, or that relay from or through a third

party's equipment without permission of the third party;

6. Contain false or misleading information in the subject line or otherwise contain false

or misleading content; or

7. Violate the Terms of Use posted on Sunrider’s website.

Sunrider reserves the right to determine in its sole discretion what constitutes actionable

Spam. Unauthorized transmission of unsolicited email, including the transmission of email

in violation of this policy, may subject IBOs to disciplinary action at Sunrider's sole

discretion, including possible suspension of Bonuses and Benefits and termination of the

Independent Business. Additionally, such transmissions may result in civil, criminal, or

administrative penalties against the sender and those assisting the sender.

IBOs should report violations of this Anti-Spam Policy immediately to the Sunrider Business

Service Department.

2. DIVISION OF AN INDEPENDENT BUSINESS

If two or more persons operate an Independent Business and wish to divide that

Independent Business, they must submit a proposal for division to Sunrider. Sunrider

reserves the right to approve or reject the division of an Independent Business. Division of

an Independent Business may be sought for several reasons, including but not limited to

divorce, corporate dissolution, or partnership dissolution.


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Any proposed division of an Independent Business must preserve and maintain the

downline organization and the viability and value of the Independent Business. If Sunrider

determines that the proposed division fails to accomplish these goals, Sunrider, at its sole

discretion, may:

1. Deny the request to divide the Independent Business;

2. Remove the parties as sponsors;

3. Require a sale of the Independent Business;

4. Move the sales organization;

5. Terminate the Independent Business; and/or

6. Require any other remedial action to protect the integrity of the downline

organization.

2.1 Division Proposed as a Result of Divorce

The former spouses may agree to continue to operate their Independent Business in the

form of a partnership, corporation, or other entity even though they are no longer married.

A formal written agreement must be entered into between the former spouses and filed

with Sunrider. The filed agreement must fully set forth the respective rights and obligations

of the former spouses and must receive Sunrider’s written approval. In addition, the former

spouses must submit the appropriate application, either an Application for Doing Business

under a Fictitious Name or an Independent Business Owner Application and Agreement for

Doing Business in a Form Other Than an Individual to the Sunrider Business Service

Department.

The former spouses may split their Independent Business into two separate Independent

Businesses, each of which will be sponsored by the original sponsor. Sunrider will assign a

new Independent Business Owner (IBO) number to each of the new Independent

Businesses to avoid confusion with the former Independent Business.


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One former spouse may relinquish all rights in the original Independent Business to the

other former spouse. Once all rights are relinquished and upon Sunrider’s written approval,

the withdrawing spouse may sign up as a new IBO and choose any sponsor for the new


If the above do not apply, Sunrider will decide at its sole discretion how to resolve the issue

of the division.

2.2 Division Proposed as a Result of Dissolution of Partnerships,

Corporations, and Other Business Entities

The parties may split their Independent Business into two or more separate Independent

Businesses, each of which will be sponsored by the original sponsor. If, following the split,

one of the parties does not retain any downline organization, that party is free to choose

any sponsor for their new Independent Business. Sunrider will assign a new IBO number to

each new Independent Business to avoid confusion with the former Independent Business.

Any of the parties may relinquish all rights in the original Independent Business. Once all

rights are relinquished and upon Sunrider’s written approval, the withdrawing party may

sign up as a new IBO and choose any sponsor for the new Independent Business, provided

that the withdrawal is not made with the intention of circumventing the twelve-month

inactivity rule. (See Duration of Account and Renewal below.)

If the above do not apply, Sunrider will decide at its sole discretion how to resolve the

issue of the division.

If the parties to an Independent Business have decided to request a division but are unable

to agree upon the terms of the proposed division, any party to the Independent Business

may submit the matter to Sunrider for a determination as to how the division should be

effected. After conducting an investigation, Sunrider will submit a proposal to the parties

for their consideration. The proposal shall become final and binding on the parties if no


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objection in writing is made to Sunrider within fifteen days of receipt of the proposal. If one

or more of the parties submits a timely written objection to Sunrider’s proposal and if no

agreement can be reached, Sunrider may at its sole discretion require sale or termination

of the Independent Business.

During the pendency of a proposed division of an Independent Business, the Independent

Business may be operated as follows:

1. As it was prior to the request for a division;

2. In a manner agreed upon by the parties, provided that the parties notify

Sunrider in writing if their agreement would require Sunrider to modify its

records; or

3. In a manner that Sunrider deems necessary in its sole discretion to preserve the

viability and value of the Independent Business.

During the pendency of a proposed division of an Independent Business, the following

rules apply:

1. If Sunrider determines that there is a danger of a loss of viability or value of the

Independent Business due to a conflict between the parties, Sunrider shall have

the right to appoint a temporary receiver of the Independent Business until a

plan for division of the Independent Business is finalized;

2. None of the parties to that Independent Business may become in any way

involved in another Independent Business;

3. No division will be effective until approved in writing by Sunrider; and

4. Once an Independent Business is divided, each new Independent Business must

qualify on its own for all recognition, commissions, bonuses, and incentive

programs.


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3. SALE OF AN INDEPENDENT BUSINESS

IBOs at the Career Title rank of Ace Royal and above who are in good standing with Sunrider

may sell their Independent Business, but not without Sunrider’s prior written approval of

the terms of the sale. Sunrider will consider each proposed sale on a case-by-case basis.

Approval of the sale by Sunrider is based on various criteria, including but not limited to a

review of the proposed purchaser’s qualifications and demonstrable ability to manage and

develop the Independent Business, possible consultation with the selling IBO’s sponsor and

upline, and possible interview of the proposed buyer(s).

Buying and selling existing Independent Businesses as a means of changing sponsors is a

violation of the Double Sponsoring provisions and will not be permitted. Proposed

transactions between existing IBOs will be closely scrutinized by Sunrider.

Sunrider expressly reserves the right to disapprove any proposed sale at its sole

discretion.

Proposed sales are subject to the following requirements:

1. The selling IBO must qualify with at least 800 PV and 10,000 DV for six

consecutive months prior to the proposed sale date;

2. The selling IBO must submit to Sunrider in writing the reasons for the proposed

sale, the terms of the proposed sale, the identity and a detailed description of

the proposed buyer, and a statement that the selling IBO has notified their

upline (up to 5 levels above their own rank and the immediate Ace Royal or

above) about the proposed sale;

3. All correspondence and documentation relating to the proposed sale must be

forwarded to Sunrider for review and verification;


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4. If the proposed buyer is already an IBO, they must be lower in rank than the

selling IBO and must also be in the same line of descent;

5. If an IBO at the rank of Hero or above wishes to sell their Independent Business

to another IBO, the buyer should be at the rank of Ace Royal or above (in the

same line of descent) for six consecutive months prior to the proposed sale

date; please note that the Sunrider may require a higher rank than Ace Royal

from the Buyer based upon the rank of the Seller;

6. If the proposed buyer is not already an IBO, the buyer must have proven sales

and leadership skills that are satisfactory to Sunrider, and the proposed buyer

must submit to Sunrider an IBO Agreement that retains the selling IBO’s sponsor

as the sponsor of the buyer’s Independent Business;

7. The buyer must agree to meet all the requirements found in the Business Guide,

including conducting downline training meetings; and

8. Prior to the sale, the proposed buyer must submit to Sunrider for its approval a

training schedule indicating the date, time, location, type of training, and

downline IBO attendees. This schedule must be submitted to the Business

Service Department.

Once Sunrider has granted preliminary approval for the proposed sale, the selling IBO must

submit the following notarized documents to Sunrider:

1. A contract between all parties;

2. An Independent Business Owner Change Notice Form; and

3. A letter of termination.

A selling IBO may not purchase another Independent Business or sponsor any other IBOs

for a period of twelve months from the date of the sale of the Independent Business. The


53

only exception to this rule is a simultaneous buy/sell agreement, which has been fully

reviewed and approved in writing by Sunrider.

No sale of an Independent Business is effective without final written approval from

Sunrider. An attempted sale without Sunrider’s written prior approval shall constitute an

unauthorized assignment in breach of the Sunrider® Business Guide, and shall be voidable

by Sunrider.

4. TRANSFER DUE TO DEATH OR INCAPACITY

Upon the death of an IBO, the Independent Business may inure to the benefit of the IBO’s

lawful successor-in-interest provided that Sunrider receives all relevant documents. The

documents required may vary depending upon the particular circumstances and may

include, but are not limited to, the death certificate, will, trust, proof of entitlement, and/or

a certified copy of a court order setting forth the identity and authority of the successor-

in-interest.

The possible transfer of the Independent Business of an incapacitated IBO will proceed

according to the same rules and procedures that apply to the death of an IBO. An IBO shall

be deemed “incapacitated” if Sunrider receives a certificate signed by two qualified medical

physicians or a certified copy of a court order which indicates that the IBO has been

determined to be incapable of conducting their affairs.

The potential successor-in-interest and all individuals of legal age with a legal or beneficial

interest shall sign a new IBO Agreement within 180 days following the death of the IBO and

agree to comply with and be bound by all terms and conditions of the Sunrider® Business

Guide.

Until the successor-in-interest is determined, Sunrider will continue to issue commissions

and bonuses, if any, in the name of the deceased IBO for up to six months.


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4.1 Spousal Successor-in-Interest

In order to inherit the Independent Business, the surviving spouse of the decedent must

have been actively participating in the Independent Business for at least twelve months

immediately preceding the decedent’s death. Active participation includes, but is not

limited to, attending Sunrider’s annual convention, workshops, applicable training and

events, applicable leadership events, and Sunrider-sponsored meetings in their geographic

area. Certain exceptions may be made in Sunrider’s sole discretion.

4.2 Children Successors-in-Interest

In order to inherit the operation of a deceased parent’s Independent Business, the

child(ren) of the decedent must be at least twenty years old, an active IBO, hold a Career

Title one level lower or higher than the decedent’s Career Title, and have qualified at that

title for at least the last six months prior to decendent’s death.

If the successor-in-interest children are not able to meet the above requirements, Sunrider

may make certain exceptions in its sole discretion.

4.3 Other Successors-in-Interest

If the decedent was at a Career Title of Ace Royal level or above and the successor-in-

interest is someone other than the surviving spouse or children, the transfer of the

Independent Business to a successor-in-interest shall be treated as a sale of the

Independent Business and shall require compliance with all rules relating to the sales of

Independent Businesses set forth in this Business Guide.

4.4 Additional Information

If the potential successor-in-interest does not meet the eligibility criteria set forth above or

if a dispute exists regarding the identity or authority of the lawful successor-in-interest,


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Sunrider will not be obligated to transfer ownership of the Independent Business. Sunrider

reserves the right, in its sole discretion, to determine which of multiple potential

successors-in-interest shall receive the Independent Business.

If Sunrider chooses, in its sole discretion, not to approve an ownership transfer, Sunrider

may allow the successor-in-interest or the legal representative to sell the Independent

Business. Sunrider must be given the first opportunity to purchase the Independent

Business at a reasonable price. Further, Sunrider reserves the right to relocate the

Independent Business to a proven Business Builder.

Operation of an Independent Business following the death of an IBO in contravention of

these rules shall constitute an unauthorized assignment of the Independent Business in

breach of the Sunrider® Business Guide and shall be voidable by Sunrider.

5. AGREEMENT VIOLATIONS, INVESTIGATION, ENFORCEMENT, AND RESOLUTION

PROCEDURES

When IBOs learn of an alleged violation of the Sunrider® Business Guide by another IBO,

IBOs should immediately inform Sunrider in writing of the purported offense. IBOs shall

report the matter to the Business Service Department by sending a letter stating the nature

of the violation, the names, addresses, and telephone numbers of all relevant individuals

and any dates, times, places, or other pertinent details. The reporting IBO must sign the

letter and must ensure that all information in the letter is truthful and accurate to the best

of their knowledge.

IBOs shall cooperate with and provide information and documentation to Sunrider when

requested. The failure to provide information or knowingly supplying inaccurate, false, or

misleading information constitutes grounds for disciplinary action at Sunrider’s sole

discretion, including but not limited to the suspension of bonuses and the possible

termination of the Independent Business.


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Upon learning of any violation of the Sunrider® Business Guide, Sunrider shall conduct an

investigation. Sunrider will send written notification of the alleged violation(s) to the IBO.

The written notification will include the time frame allotted for the IBO to submit their

position in writing along with any accompanying evidence for Sunrider’s review.

At the conclusion of the investigation, Sunrider will determine, in its sole discretion, the

appropriate disciplinary actions to impose, if any. Sunrider will notify the IBO of its decision,

which will become effective on the date the notification is sent.

IBOs who violate any rule in the Sunrider® Business Guide or make any material

misstatement or misrepresentation to Sunrider or any other person in the course of

conducting their Independent Business, may be subject to disciplinary action, in Sunrider’s

sole discretion, including but not limited to any or all of the following:

1. Monetary penalties and other sanctions;

2. Suspension of any bonuses and privileges for a time period that Sunrider deems

appropriate;

3. Termination; and

4. Sunrider’s exercise of any or all other remedies to which it is entitled under law

or in equity

6. SUSPENSION AND TERMINATION

Violation of the Sunrider Code of Ethics, the Sunrider® Business Guide, or any of the written

policies of Sunrider is grounds for suspension and/or termination.


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6.1 Suspension

Sunrider may, at its sole discretion, suspend an IBO pending the outcome of an

investigation of a possible violation of the Sunrider® Business Guide. Sunrider will withhold

any bonuses and payments during the suspension.

If Sunrider determines upon completion of its investigation that the IBO is not in violation

of the Sunrider® Business Guide, the suspension will be lifted and the IBO will be paid the

bonuses and payments that were withheld during the suspension.

If Sunrider determines upon completion of its investigation that the IBO is in violation of

the Sunrider® Business Guide, Sunrider may determine, at its sole discretion, that non-

payment of withheld bonuses and payments or termination is warranted. In the case of

termination, the IBO will not receive the bonuses and payments that were withheld during

the suspension.

6.2 Voluntary Termination

IBOs who desire to terminate their Independent Business may do so at any time upon

written notice to the Sunrider Business Service Department. Career Title Ace Royals and

above who voluntarily terminate their Independent Business agree to refrain from

participating, either directly or indirectly, in another Independent Business for a period of

twelve months from the date that Sunrider receives notice of the termination. All IBOs who

voluntarily terminate understand that further usage of Sunrider Proprietary Information,

including but not limited to customer lists, IBO lists, and the like is a violation of these

provisions, and that Sunrider shall be entitled to monetary relief, recoverable attorney’s

fees, injunctive or other equitable relief, and any and all other legal remedies.

6.3 Involuntary Termination and Sanctions

Sunrider may terminate an Independent Business for cause. For purposes of this provision,

“for cause” means any violation of the Sunrider Code of Ethics, the Sunrider® Business


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Guide, any of the written policies of Sunrider, or for allowing an Independent Business to

become inactive.

Instead of termination for cause, Sunrider may, in its sole discretion, suspend an

Independent Business or take any other disciplinary action that Sunrider deems

appropriate and necessary.

6.4 Rules Applying to All Terminations

Terminated IBOs lose all prior rights to rank and eligibility for bonuses. Terminated IBOs

are not entitled to any compensation for goodwill.

After an Independent Business terminates, Sunrider will hold bonuses for a period of up

to six months to resolve all accounting and upline qualification issues.

Subject to any limitations imposed under local laws and regulations, Sunrider agrees to

repurchase products and sales aids (Inventory) in currently marketable condition, in

accordance with all of the following provisions:

1. Inventory must have been purchased directly from Sunrider and must be

returned within twelve months of the original purchase date;

2. IBOs are responsible for all shipping expenses in returning the Inventory to

Sunrider;

3. The returned Inventory must be accompanied by a letter clearly marked “Return

of Unsold Inventory/Termination,” stating that the Independent Business has

been terminated and that the IBO will not initiate or otherwise participate,

either directly or indirectly, in another Independent Business for at least twelve

months from the date of termination or the date Sunrider receives the “Return

of Unsold Inventory/Termination” letter, whichever is later;


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4. Sunrider will pay 90% of the net cost for the Inventory returned, except that

Sunrider shall have the right to effect a set-off for amounts owed by the IBO to

Sunrider, including any legal or equitable adjustments arising from claims

Sunrider may have against the IBO. Net cost means the price actually paid to

Sunrider for the Inventory (excluding sales tax, shipping, and handling charges)

less any consideration/discounts (e.g. bonuses) the IBO received in connection

with the purchase of the Inventory. Sunrider may require proof of purchase

before repurchasing Inventory;

5. Inventory shall not be considered “currently marketable” if it is not returned in

its original, unopened packaging, is returned after the commercially reasonable,

resalable, useable, or shelf-life period has expired, or if Sunrider disclosed prior

to purchase that the Inventory comprised seasonal, discontinued, or special

promotion items not subject to repurchase;

6. Sunrider reserves the right to inspect all Inventory returned pursuant to this

policy to determine if all of the above conditions have been met;

7. With respect to returned Inventory, Sunrider reserves the right to deduct

bonuses from the terminated IBO and the upline of the terminated IBO that

were paid on the purchase of the Inventory; and

8. If an IBO has previously certified incorrectly or falsely that seventy percent of

the Inventory was sold, used, or consumed, the repurchase by Sunrider shall be

limited to that quantity of Inventory that the terminated IBO previously certified

to be correct and truthful.

There is no roll up or compression when an IBO is terminated for any reason. The

terminated IBO’s position will continue to be counted as a level for the terminated IBO’s

upline in perpetuity.


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7. DURATION OF ACCOUNT AND RENEWAL

Unless terminated by the account holder or Sunrider, all active IBO accounts are limited to

a term of twelve months and will be automatically renewed every twelve months

thereafter. Upon renewal, each account will be charged the applicable $59 renewal fee to

the credit card on file with Sunrider at that time or any account credit. If the annual renewal

fee is not paid in a timely manner, the IBO account will be terminated and the IBO will

become a Retail Customer.

Preferred Customer accounts will be renewed every twelve months upon the payment of

the annual $19.95 renewal fee. If the annual renewal fee is not paid in a timely manner,

the Preferred Customer account will be changed to a Retail Customer account.

8. EXCUSE OF NONPERFORMANCE

Sunrider shall not be responsible for delays and failures in performance due to

circumstances beyond Sunrider’s control, including without limitation, strikes (actual or

threatened), labor difficulties, riots, earthquakes, acts of God, civil disturbances or

disorder, wars, disasters, fires, deaths, curtailment of Sunrider’s usual sources of supplies

and raw materials, terrorists acts (actual or threatened), acts of foreign enemies,

curtailment of transportation services, decrees, orders, or other governmental actions, or

a similar intervening cause beyond the control of Sunrider making it illegal, impossible, or

commercially impracticable for Sunrider to perform its duties and obligations outlined in

the Sunrider® Business Guide.

9. ASSIGNMENT AND DELEGATION

IBOs acknowledge that the Sunrider® Business Guide constitutes a personal contract with

Sunrider. IBOs may not, by operation of law or otherwise, assign their rights or delegate

their performance without Sunrider’s prior written consent. Any attempted assignment or


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delegation without Sunrider’s consent shall be voidable by Sunrider. Sunrider shall decide

whether to consent to any attempted assignment or delegation in its sole discretion.

Sunrider may withhold its consent to assignment until the IBO executes a separate

agreement, including personal guarantees, as Sunrider may deem necessary to protect the

proprietary information, rights, and interests of Sunrider as well as the assignee and/or

other IBOs.

Sunrider may assign or delegate any of its rights and duties under the Sunrider® Business

Guide without the prior written consent of any IBOs. However, before doing so Sunrider

will attempt to obtain reasonable assurances from the assignee or delegatee that they will

satisfactorily perform Sunrider’s duties and obligations as set forth in the Sunrider®

Business Guide.

10. NOTICE OF AMENDMENT

Sunrider reserves the right to adopt, amend, modify, supplement, or rescind any or part of

the terms and conditions of the Sunrider® Business Guide as Sunrider, in its sole discretion,

deems necessary or appropriate, or as may be required by law. Sunrider shall notify all

active accounts of changes made to the Sunrider® Business Guide by announcements in

Sunrider publications, email, and/or postings on Sunrider’s websites. However, it is the

obligation of IBOs to request and obtain any updates or revisions to the Sunrider® Business

Guide. Changes to the Sunrider® Business Guide shall be deemed effective and binding on

IBOs at the time Sunrider mails, emails, or posts on Sunrider’s websites notice of the

changes.

11. LIMITED WARRANTY

Sunrider warrants to the original purchaser that Sunrider products will be free from defects

for a period of fourteen calendar days from the date purchased. This warranty does not

extend to any Sunrider® products that have been used contrary to Sunrider instructions,


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stored improperly, or subjected to neglect, misuse, accident, or modification by anyone

other than Sunrider. This warranty is effective only if a written claim notice is properly

submitted to and timely received by Sunrider. Sunrider may, at its sole discretion, exchange

any defective product or refund the purchase price in accordance with the Return of

Product provisions set forth herein. The remedy of exchange or refund provided for herein

shall be the sole and exclusive remedy in the event of a claimed breach of warranty.

12. DISCLAIMER OF WARRANTIES AND LIMITATION OF LIABILITY

The above warranty is the only warranty provided by Sunrider. There are no other

warranties, express or implied, including any implied warranty of merchantability or fitness

for a particular purpose applicable to Sunrider® products. The sole and exclusive remedy of

exchange or refund is given and accepted in lieu of any obligation, liability, right, claim, or

remedy in statute, contract, tort, or strict liability against Sunrider or its related companies,

or their respective officers, directors, stockholders, members, partners, agents, or

employees, whether or not arising from the negligence, actual or imputed, of Sunrider or

its related companies, or their respective officers, directors, stockholders, members,

partners, agents, or employees. In no event will Sunrider be liable for any incidental,

special, indirect, consequential, punitive, or exemplary damages arising from any defect in

any Sunrider® product, or the use, misuse, or inability to use any Sunrider® product.

13. INFRINGEMENT

Sunrider expressly disclaims any warranty, express or implied, of non-infringement of any

third party’s intellectual property rights, including without limitation patents, trademarks,

tradenames, and copyrights. If IBOs are sued by a third party claiming infringement of any

third party’s intellectual property rights, Sunrider shall be under no obligation to indemnify

or hold the IBOs harmless on account of the alleged infringement.


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14. INDEMNITY

Sunrider may be subject to claims by third parties resulting from IBOs’ failure to comply

with the terms and conditions of the Sunrider® Business Guide. IBOs therefore agree to

indemnify, defend, and hold Sunrider and its related companies, and their respective

officers, directors, stockholders, members, partners, agents, and employees (Indemnitees)

harmless from any claim, demand, liability, loss, damages, cost, or expense (including

without limitation actual attorneys’ fees and disbursements) arising out of or related to

IBOs’ breach of any term or condition of the Sunrider® Business Guide. Such obligation shall

not negate, abridge, or otherwise reduce any other right or obligation of indemnity that

would otherwise exist in favor of any of the Indemnitees against IBOs.

15. INTEGRATION

The Sunrider® Business Guide constitutes the entire understanding of the parties pertaining

to the subject matter thereof, including the IBO’s business relationship with Sunrider and

the terms and conditions related to the IBO’s right to sell Sunrider® products and receive

bonuses and benefits under Sunrider’s compensation plan. Should any inconsistencies arise

between the terms of the IBO Agreement and the Sunrider® Business Guide, all of the terms

and conditions of the Sunrider® Business Guide shall be controlling.

16. WAIVER

The failure of Sunrider to exercise any rights set forth in the Sunrider® Business Guide or to

insist upon strict compliance with any provision hereunder shall not constitute a waiver of

Sunrider’s right to demand full compliance with the Sunrider® Business Guide. An express

waiver by Sunrider or an IBO can only be accomplished formally, in writing, by an

authorized officer of Sunrider or the IBO, and shall be limited in application to the particular

circumstances of the waiver instrument.


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17. SEVERABILITY

In the event that any part, article, paragraph, sentence, or clause of the Sunrider® Business

Guide shall be held to be indefinite, invalid, or otherwise unenforceable, then that part,

article, paragraph, sentence, or clause shall be deemed automatically adjusted to the

minimum extent necessary to conform to the requirements for validity, and, as adjusted,

shall be deemed a provision of this Agreement as though originally included herein. If the

invalidated provision cannot be adjusted to conform to the requirements for validity, the

entire Sunrider® Business Guide shall not fail on account thereof and the balance of the

Sunrider® Business Guide shall continue in full force and effect.

18. CIRCUMVENTION OF POLICIES

The integrity of the Sunrider Infinity Compensation Plan is of vital importance to the

Company. If Sunrider determines in its sole discretion that an IBO’s action was taken in an

effort to circumvent compliance with any provisions of the Sunrider® Business Guide, the

action taken by the IBO shall be null and void. IBOs may not use false names, false

identification, false IBO accounts, buy additional product for the sole purpose of

maintaining a specific rank, warehouse products, or use any other form of manipulation

that violates the terms, conditions, spirit, and intent of the compensation plan. To ensure

compliance with the Sunrider® Business Guide, Sunrider may, in its sole discretion, impose

sanctions against offending IBOs, including without limitation the termination of the


19. DISPUTE RESOLUTION AND ARBITRATION

PLEASE READ THIS SECTION CAREFULLY. IT MAY SIGNIFICANTLY ALTER YOUR RIGHTS,

INCLUDING YOUR RIGHT TO FILE A LAWSUIT IN COURT. Sunrider and Independent

Business Owners (“IBOs”) agree that should any dispute, claim, or controversy arise out of

the Sunrider Business Guide, Code of Ethics, or Independent Business Owner Application

and Agreement, or in any way relate to the relationship between the IBO and Sunrider, its


65

officers, directors, agents, employees, other IBOs, or distribution or use and consumption

of Sunrider products, the dispute shall be submitted to binding arbitration rather than

being resolved in court. This provision applies to all disputes, claims or controversies

whether based in contract, tort, statute, regulation, ordinance, fraud, misrepresentation,

or any other legal or equitable theory. You understand that there is no judge or jury in

arbitration, and court review of an arbitration award is limited.

A. CLASS ACTION WAIVER

Neither Sunrider nor any IBO shall be entitled to join or consolidate disputes by or

against other individuals or entities, including as a member of a class, in

connection with a dispute. To the maximum extent permitted by applicable law,

neither Sunrider nor any IBO may arbitrate any dispute in a representative

capacity, including, without limitation, as a private attorney general. Further,

unless both Sunrider and IBO agree, the arbitrator may not consolidate more than

one person’s claim.

B. AAA Commercial Arbitration Rules and Mediation Procedures

Arbitration will be conducted in accordance with the American Arbitration

Association’s (AAA) Commercial Arbitration Rules and Mediation Procedures.

C. How To Initiate Arbitration

1. The party demanding arbitration (hereinafter referred to as “Claimant”)

shall serve upon the opposing party a written demand for arbitration. The

written demand shall contain a concise statement regarding the nature of

the dispute to be arbitrated, the remedy sought and the factual basis for

the requested relief, and a list of 5 (five) proposed arbitrators.

Any demand for arbitration shall occur within 2 years of the dispute, but in

no event after the date in which the initiation of legal proceedings would


66

otherwise have been barred under the applicable statute of limitations.

The failure to timely demand arbitration shall bar all claims.

D. Case Administration and Scheduling

Unless the parties can otherwise agree, the arbitrator shall have all authority to

dictate scheduling and case administration including discovery cut off dates,

hearing dates, the granting of continuances and other matters necessary to insure

a uniform and fair process for the preparation and presentation of evidence at the

hearing.

E. Discovery

The parties hereby adopt and incorporate by reference herein, Section 1283.05 of

the California Code of Civil Procedure, which permits all methods of discovery as if

this matter were pending before a California Superior Court,

F. Venue of Arbitration Proceedings

All arbitration proceedings shall take place in Los Angeles County, California. If

any court or arbitrator determines that the class action waiver set forth in this

section is void and unenforceable for any reason, then the dispute will not be

subject to arbitration and, other than small claims actions, must be brought in the

appropriate federal or state court in Los Angeles County, California. Claims

brought in state court may be removed to federal court if removal jurisdiction

exists. Both Sunrider and IBO consent to venue and personal jurisdiction in Los

Angeles County, California. Both Sunrider and IBO waive their right to a jury trial.

G. Arbitrator Fees and Costs

All costs including the fees of the arbitrator shall be paid equally by the parties

and not taxed as cost or otherwise included as part of any award.


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H. Decision of Arbitrator

Any decision or award by the arbitrator shall be final and binding on the parties.

Unless otherwise agreed, any decision or award shall set forth the factual and

legal basis for the award. The arbitrator shall be permitted to award only those

remedies in law or equity, which are requested by the parties and which the

arbitrator determines is supported by credible relevant evidence. The arbitrator’s

decision or award shall be final and binding.

I. Enforcement of Award

Any decision or award may be enforced as a final judgment by any court of

competent jurisdiction. If either party unsuccessfully challenges the validity of the

award, the unsuccessful party shall pay the opposing party’s costs and attorney

fees associated with the challenge.

J. Choice of Law

The Arbitration Agreement, along with the Sunrider Business Guide, will be

governed by the laws of the State of California, without giving effect to its conflicts

of law principles.

K. Severability

In the event that any portion of the Arbitration Agreement and/or Sunrider

Arbitration Rules, other than the Class Action Waiver, should be held indefinite,

invalid or otherwise unenforceable, the entire Arbitration Agreement and Sunrider

Arbitration Rules shall not fail on account thereof and the balance of the

Arbitration Agreement and Sunrider Arbitration Rules shall continue in full. If,

however, the Class Action Waiver is held to be unenforceable, then the entire

Arbitration Agreement shall become null and void.


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L. Ability to Change Terms and Conditions Inapplicable

While Sunrider may revise certain terms and condition in the IBO Agreement in its

discretion, as specified therein, neither Sunrider nor any IBO shall have the right to

alter this agreement to arbitrate or the rules specified herein.

20. RESTRICTION OF PERIOD OF LIMITATION OF ACTION

No legal action or proceeding, regardless of form, arising out of or relating to the Sunrider®

Business Guide, the Sunrider Code of Ethics, or any of Sunrider’s written policies, the use

or consumption of Sunrider® Products, or the relationship between IBOs and Sunrider or its

related companies, or their respective officers, directors, stockholders, members, partners,

agents, or employees, or other IBOs, may be brought by IBOs or Sunrider more than two

years after the cause of action has accrued but in no case beyond the applicable Statute of

Limitations for that action, whichever is shorter.

21. MISCELLANEOUS

The titles, subtitles, captions, and headings in the Sunrider® Business Guide are for

convenience of reference only, and shall not affect the meaning, interpretation, or

construction of any of the terms, provisions, covenants, or conditions of the Sunrider®

Business Guide.

The language in all parts of the Sunrider® Business Guide shall be in all cases construed

simply according to its fair meaning and not strictly for or against IBOs or Sunrider.

The original text of the Sunrider® Business Guide is in English and any interpretation of it

will be based on the original English text. In the event of a conflict between different

translations of the Sunrider® Business Guide or any documents or notices related thereto,

the original English version will prevail.


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If any provision of the Sunrider® Business Guide is capable of two constructions, one that

would render the provision void and the other that would render the provision valid, then

the provision shall have the meaning that renders it valid.

Nothing contained in the Sunrider® Business Guide shall be construed as requiring the

commission of any act contrary to law. When there is a conflict between a provision of the

Sunrider® Business Guide and a present or future statute, ordinance, or regulation, the

latter shall prevail, but the provision of the Sunrider® Business Guide thus affected shall be

curtailed and limited only to the extent necessary to bring it within the legal requirements.

If a court of competent jurisdiction deems any provision (other than for the payment of

money) unreasonable and the court requires a reasonable modification be made to the

provision, the Sunrider® Business Guide shall continue to be valid and the parties to the

proceedings shall be bound and obligated to perform under the contract as modified.


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SECTION 3: GENERAL OPERATING PROCEDURES

1. Independent Business Owner Agreement

The applicant for an Independent Business must provide a valid tax identification number,

which Sunrider will keep confidential. Generally, Independent Business Owners (IBOs)

cannot share the same address with other IBOs, Retail Customers, or Preferred Customers,

but Sunrider may approve special exceptions on an individual basis.

Applicants are given the opportunity to review the most current version of the Sunrider®

Business Guide and to read the IBO Agreement. If the applicant agrees to the terms and

conditions, they must complete and submit the IBO Agreement.

Sunrider generally emails acceptance letters immediately after Sunrider’s receipt of the IBO

Agreement.

2. Sunrider Forms

The following guidelines apply to all forms submitted to Sunrider.

1. IBOs, and their sponsor if appropriate, must review all forms before submitting

them to Sunrider to insure that they have been completed fully and accurately.

Sunrider will not process incomplete or inaccurate forms.

2. If filling out an application by hand, IBOs should write clearly and legibly in black or

blue ink. Illegible forms will not be processed.

3. For hard copy forms, IBOs should sign, initial, and date the front and back of all

forms where appropriate before submitting them to Sunrider.

4. IBOs should mail completed hard copy forms to:


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Sunrider International

1625 Abalone Avenue

Torrance, CA. 90501

5. IBOs should fax completed hard copy forms to Sunrider at (310) 222-9271 or (310)

222-9272. IBOs are responsible for confirming Sunrider’s receipt of all forms sent

by facsimile.

6. IBOs may also submit forms on the Internet at www.sunrider.com.

3. ORDERING PRODUCT

Prior to ordering products, IBOs should have the following information available:

Independent Business Owner ID number and name, ship to address, choice of shipping via

ground or air, telephone number, method of payment, and list of products.

Products may be ordered online, by telephone, facsimile, mail, or in person.

1. To place an online order, IBOs can proceed directly to https://buy.sunrider.com and

follow the online order instructions. The online store may also be reached through

the main Sunrider site at www.sunrider.com by clicking on “shop online.”

2. To place an order by telephone, please call Sunrider at (310) 222-6363.

3. To place an order by facsimile, send the completed order form to (310) 222-9271

or (310) 222-9272.

4. To place an order by mail, send the completed order form and the payment to

Sunrider International, 1625 Abalone Avenue, Torrance, CA 90501, Attn: Order

Department. Sunrider is not responsible for orders lost or delayed in the mail.

5. To place an order in person (will-call), come to the Sunrider Business Center during

regular business hours. Complete the order along with full payment on the Sunrider




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website (computers are available at the Sunrider Business Center). A $3.00 Service

Fee will be charged on each will-call order that does not contain a Starter Pack.

In order to qualify for CV and QV credit in a given month, orders must be placed with

Sunrider no later than the last day of the calendar month. Mail orders must be received by

Sunrider no later than the last business day of the month.

3.1 Back Orders

Back order status means the product will be shipped within seven working days. Sunrider

will immediately ship all of the ordered items that are currently in the warehouse.

Additional shipments containing back-ordered items will follow as they become available.

If an order contains items that are on back order, Sunrider will credit the IBO with the

appropriate CV and QV at the time the order is placed.

IBOs must contact Sunrider to request the cancellation of a back order. If a replacement

order is not made, the canceled back order may result in a missed qualification.

3.2 Temporarily Out of Stock

Temporarily out of stock means the item will not be in the warehouse for more than seven

working days. If Sunrider receives a mail or fax order for temporarily out of stock

merchandise, Sunrider will attempt to contact the purchaser within 48 hours by phone to

offer the option of buying other merchandise.

If an order includes items that are temporarily out of stock, the IBO will not receive CV or

QV credit for that portion of the order at the time of order. CV and QV will be credited at

the time the items ship.


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3.3 Record of Invoices

An invoice is included with each shipment. If the order is drop-shipped, the recipient will

receive one copy of the invoice without prices and the IBO will receive one copy of the

invoice with prices. IBOs should keep their invoices for tax and business purposes.

4. PAYMENTS

Payments should be made for the full amount of the order, including applicable sales tax

and shipping and handling charges. Sunrider does not accept C.O.D. orders.

Sunrider ships all orders immediately after receipt of payment. Sunrider may process

orders received without full payment at its sole discretion. If Sunrider processes the order,

Sunrider will, at its sole discretion, delete items not covered by the incomplete payment.

4.1 Cashier’s Check/Money Order/Personal Check/Bank

Draft/TeleCheck

Sunrider accepts cashier’s checks, money orders, personal checks, bank drafts, and

TeleCheck made payable to Sunrider International. There is a $1,000 limit on personal

checks per order. Sunrider will accept pre-printed personal checks only when the name on

the checking account matches the name on the Sunrider account.

TeleCheck allows Sunrider to use information from your check to make a one-time

electronic fund transfer from your account or to process the payment as a check

transaction. Funds may be withdrawn from your account as soon as the same day we

receive your payment, and you will not receive your check back from your financial

institution.


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4.2 Returned Checks/Bank Drafts

Sunrider will automatically deduct a $20 processing fee from the IBO’s account whenever

a check or bank draft is returned unpaid to Sunrider.

If a check or bank draft is returned unpaid to Sunrider, Sunrider will not accept payments

by check or bank draft from that purchaser for a period of six months.

Sunrider will only accept payment by cashier’s check, money order, or credit card to resolve

a returned check or bank draft.

Sunrider may, at its sole discretion, deduct any uncollected amounts from future rebates,

commissions, or bonuses.

Failure to promptly resolve a returned check or bank draft is grounds for termination and

may subject IBOs to legal action.

4.3 Credit Cards/PayPal

Sunrider accepts payments through PayPal, Discover Card, MasterCard, VISA, and American

Express. Only IBOs who are authorized signatories on the relevant accounts may place

orders using that account. Sunrider will not accept orders from IBOs who attempt to use

another person’s account.

Sunrider will verify all payments with an authorization company prior to processing. In the

event the authorization company refuses to authorize full payment, Sunrider will inform

the IBO of the unprocessed order.

4.4 Cash

Sunrider accepts cash payment only if orders are paid for in person. Do not mail cash.


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5. SHIPPING

Orders are primarily shipped by common carrier.

A complete street address with a current phone number is necessary to ensure prompt

delivery. Sunrider will assess a 10% processing fee for all undeliverable or refused

shipments. Sunrider will assess a fee for redirected orders depending on the amount

charged by the shipper to redirect the order.

Sunrider will make every effort to ensure prompt delivery but cannot be held responsible

for delayed shipments.

For shipping inquiries or lost orders, please contact the Business Service Department.

6. RETURN OF PRODUCTS

To process a return, the IBO, Retail Customer, or Preferred Customer’s name and address

should be printed clearly on the return carton. The return carton must include the following

items:

1. A completed product return form;

2. All products and containers in question;

3. A copy of the invoice or the invoice number; and

If the returned products were purchased by a consumer who is not an IBO, the return

carton must also include the following items:

1. A signed receipt with the name, address, and daytime telephone number of both

the purchaser and selling IBO; and

2. The purchaser’s signed statement indicating their reason(s) for returning the

product.


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If an IBO, Retail Customer, or Preferred Customer fails to comply with the requirements

stated herein, or if an IBO fails to honor a legitimate refund request by a first time

purchaser, Sunrider will deduct a 10% processing fee from the reimbursement to that IBO,

Retail Customer, or Preferred Customer.

Sunrider will reimburse postage on qualified returns as long as returns include a copy of

the postal receipt. Sunrider literature, marketing materials, and promotional items are not

refundable.

6.1 14-Day Return Policies

1. First Time Purchase Policy

The First Time Purchase 14-Day Return Policy is applicable only to first time

product purchases when the purchaser is not an IBO.

If the first time purchaser bought products directly from Sunrider, the purchaser

has 14 days from the date of receipt to return the products. If the first time

purchaser bought the products from an IBO, the purchaser must return the unused

portion of the products to the selling IBO within 14 days of purchase. Failure to

comply with the 14-day requirement will result in denial of the claim. The selling

IBO will take full responsibility for processing the return and refunding the purchase

price.

IBOs who issue a refund to a first time purchaser after the 14-day Return period and

then return the products to Sunrider after the 60-day original purchase period

described below will not be entitled to any refund, reimbursement, or replacement

from Sunrider.


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2. Damaged/Defective Product Return Policy

Damaged or defective products must be returned within 14 days of receipt. Failure

to comply with the 14-day requirement will result in denial of the claim. When

returning damaged or defective products to Sunrider, the customer, Preferred

Customer, or IBO making the return must include the Shipping Discrepancy or

Damage Claim Form, packing materials, copies of shipping documents, and a copy

of the invoice. The person making the return may request either replacement of the

same products or a product credit.

6.2 60-Day Return Policy

Customers, Preferred Customers, and IBOs must submit product returns for non-damaged

and unopened products within 60 days of original purchase from Sunrider for reasons other

than damaged or defective products. Sunrider is under no obligation to process a return or

provide a refund for any product returned after this 60-day period.

Sunrider will reimburse the Customers, Preferred Customers, and IBOs for the purchase

price of the products minus any applicable processing and research fees.

Any bonuses paid to IBOs based on the original purchase of returned products will be

deducted from the reimbursed amount. Sunrider has sole discretion to subject IBOs to

monetary, CV, and QV deductions on returned products. Upline IBOs may be subject to

monetary, CV, and QV deductions based on bonuses previously paid by Sunrider on the

returned purchases.

6.3 Extra Product Returns

In the event that Sunrider inadvertently ships products that were not included in a product

order, Customer, Preferred Customers, and IBOs who choose to keep the extra products

must provide full payment for the extra products to Sunrider. Those who choose not to


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keep the extra products should return them as soon as possible to Sunrider with a

completed Shipping Discrepancy or Damage Claim Form and a copy of the invoice.

7. SALES VOLUME TRANSFER POLICY

IBOs may not transfer money and/or sales volume (CV and QV) to other IBOs.

8. ACCOUNT CHANGES

IBOs agree to keep current all contact information (address, telephone number, email

address, etc.) on file with Sunrider. Any notices sent pursuant to any provision of the

Sunrider® Business Guide will be sent to the address on file with Sunrider. Any information

sent to the address on file is conclusively presumed to be adequate notice. All requests for

changes to a Sunrider account must be submitted to Sunrider in writing.

8.1 The Independent Business Owner Change Notice Form

The Independent Business Owner Change Notice Form may be used to make account

changes. The “Old Independent Business Owner Information” section of the form should

contain all the information concerning the IBO prior to any requested changes. The

“Revised Independent Business Owner Information” section of the form should contain

only the information that is being revised. The effective date should be included.

8.2 Change of Address or Name

IBOs who want to change the address on their Sunrider account may mail, fax, email, or

submit online to Sunrider their address change request with the old and new addresses,

their ID number, and their signature. If the address change request is submitted by mail or

fax, IBOs may use the Independent Business Owner Change Notice Form. If the address

change request is submitted by email, the email address on the request must match the

email address on file with Sunrider for that Business. When there is more than one person

on the Sunrider account, Sunrider will not process the address change request until a copy


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is mailed or faxed to Sunrider with the signatures of all parties on the account. IBOs cannot

have the same address as another IBO, Retail Customer, or Preferred Customer.

IBOs who want to request a name change are required to provide to Sunrider a photocopy

of their social security card showing their new name, an original W9 form and a letter

signed by all of the parties involved requesting the name change.

IBOs who want to add a co-applicant, including a spouse or immediate family member, to

a Sunrider account must submit an IBO Agreement for Co-Applicants form with the

signatures of both the IBO and person being added to the account.

IBOs who want to delete an applicant or co-applicant from a Sunrider account must provide

a notarized letter requesting the deletion signed by all of the parties involved.

Sunrider reserves the right, in its sole discretion, to approve or disapprove additions and

deletions to applicant and co-applicant names on an Independent Business. Sunrider may

request additional information, such as the reason for the change, in order to prevent

circumvention of the policies and procedures of the Sunrider® Business Guide.

Sunrider may consider the “Sale of an Independent Business” guidelines when deciding

whether to allow additions and deletions to the applicant name on an Independent

Business.

9. REQUESTING REPORTS AND LABELS

IBOs may access the Account Management and Activity Management page on Sunrider’s

Business Center to monitor downline activity. Also on the Account Management and

Activity Management page, IBOs can create downline mailing labels, sort their downline by

ID, or name, and obtain email addresses of their downline organization.

IBOs at the rank of Ace Royal and above may request that Sunrider generate certain reports

and/or mailing labels regarding their downline.


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9.1 Upline Mail Authorization Form

Heroes and above who wish to unblock their downline from their upline’s mailing label lists

should submit a written request. If there is a co-applicant on the Sunrider account, the co-

applicant must also sign the request.

Documents

August 2019 - Sunrider · SUNRIDER® BUSINESS GUIDE UNITED STATES AUGUST 2019 1 Sunrider ® Business Guide Introduction Welcome to Sunrider! Our mission is to nourish the world and