Qur4 Ltd Network

POLICIES
&
PROCEDURES
Effective from 2019-03-06
Qur4 Ltd.

TABLE OF CONTENTS

INTRODUCTION

1.1 Policies and Compensation Plan Incorporated into Affiliate Agreement
1.2 Purpose of Policies
1.3 Changes to the Agreement
1.4 Delays
1.5 Policies and Provisions Severable
1.6 Waiver

BECOMING AN AFFILIATE
2.1 Requirements to Become an Affiliate

  1. No Product Purchase Required
    2.3 Affiliate Benefits
    2.4 Term and Renewal of an Qur4

III. OPERATING AN Qur4 affiliate
3.1 Adherence to the Qur4 Compensation Plan
3.2 Advertising
3.2.1 General
3.2.2.1 Advertising and Selling Price of Products on the Internet
3.3 Bonus Buying Prohibited
3.4 Business Entities
3.5 Change of Sponsor or Placement
3.6 Unauthorized Claims and Actions
3.6.1 Indemnification
3.7 Retail Establishments
3.8 Trade Shows, Expositions and Other Sales Forums
3.9 Conflicts of Interest
3.9.1 Non-solicitation and Noncompetition
3.10 Targeting Other Direct Sellers
3.11 Line Switching, Cross-Sponsoring and Enticement
3.12 Errors or Questions
3.13 Governmental Approval or Endorsement
3.14 Holding Applications or Orders
3.15 Identification
3.16 Income Taxes
3.17 Independent Contractor Status
3.18 Insurance
3.19 International Marketing

  1. 3.20 Inventory and The 70 Percent Rule

3.21 Adherence to Laws and Ordinances
3.22 One Qur4 Per Affiliate and Per Household
3.23 Actions of Household Members or Affiliated Individuals
3.24 Requests for Records
3.25 Sale, Transfer or Assignment of an Qur4
3.26 Effects of Divorce or Entity Dissolution on the Qur4
3.27 Sponsoring
3.28 Succession (Death or Incapacity of an Associate)

RESPONSIBILITIES OF AFFILIATES

4.1 Change of Address, Telephone, and E-Mail Addresses
4.2 Continuing Development Obligations
4.2.1 Ongoing Training
4.3 Non-disparagement
4.4 Providing Documentation to Applicants

SALES REQUIREMENTS

5.1 Product Sales
5.2 No Territory Restrictions
5.3 Will Call
5.4 Sales Receipts

BONUSES AND COMMISSIONS 17

6.1 Bonus and Commission Qualifications 17
6.2 Adjustment to Bonuses and Commissions 17
6.3 Reports 18

VII. PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASE 18

Returns Guarantee 18 7.1.1 Initial Order Returns 18

7.1.2.1 Requirements 18
7.1.2.2 Autoship Returns 19

7.2 Inventory Repurchase Upon Cancellation 19
7.3 Procedures for All Returns 19

DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS 20

8.1 Disciplinary Sanctions 20
8.2 Grievances and Complaints 20
8.3 Dispute Resolution Board 20
8.4 Mediation 21
8.5 Arbitration 21
8.6 Governing Law, Jurisdiction and Venue 21
7.

POLICIES AND PROCEDURES Qur4

PAYMENT AND SHIPPING 21

9.1 Returned Checks 21
9.2 Restrictions on Third Party Use of Credit Cards and Checking Account Access 21
9.3 Sales Taxes 22

RECLASSIFICATION & CANCELLATION 22

10.1 reject of Cancellation 22
10.2 Re classification Due to Cancellation 22
10.3 Involuntary Cancellation 22
10.4 Voluntary Cancellation 23
10.5 Non-renewal 23
10.6 Credit Card Chargebacks 23

XI. DEFINITIONS 23

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

INTRODUCTION

POLICIES AND COMPENSATION PLAN INCORPORATED INTO AFFILIATE AGREEMENT

These Policies and Procedures, in their present form and as amended at the sole discretion of Qur4 Ltd (hereafter “Qur4” or the “Company”), are incorporated into, and form an integral part of, the Qur4 Affiliate Agreement. Throughout these Policies, when the term “Agreement” is used, it collectively refers to the Qur4 Affiliate Application and Agreement, these Policies
and Procedures, the Qur4 Compensation Plan, and the Qur4 Entity Application (if applicable).

These documents are incorporated by reference into the Qur4 Affiliate Agreement (all in their current form and as amended by Qur4). It is the responsibility of each Affiliate to read, understand, adhere to, and ensure that he or she is aware of and operating under the most current version of these Policies and Procedures. When sponsoring or enrolling a new Associate, it is the responsibility of the sponsoring Affiliate to ensure that the applicant is provided with, or has online access to, the most current version of these Policies and Procedures and the Qur4 Compensation Plan prior to his or her execution of the Affiliate Agreement.

PURPOSE OF POLICIES

Qur4 is a direct sales company that markets its Products through independent Affiliates. It is important to understand that the success of all Affiliates depends on the integrity of the men and women who market our Products. To clearly de ne the relationship that exists between Affiliates and Qur4, and to explicitly set a standard for acceptable business conduct, Qur4 has established the Agreement.

Qur4 Affiliates are required to comply with all of the Terms and Conditions set forth in the Agreement, as well as all federal, state, and local laws governing their Qur4 and their conduct. Because Affiliates may be unfamiliar with many of these standards of practice, it is very important that they read and abide by the Agreement.
Please review the information in this manual carefully. It explains and governs the relationship between the Associate, as an independent contractor and the Company. If there are questions regarding any policy or rule, do not hesitate to seek an answer from Qur4.

CHANGES TO THE AGREEMENT

Because federal, state, and local laws, as well as the business environment, periodically change, Qur4 reserves the right to amend the Agreement and its prices in its sole and absolute discretion. By signing the Affiliate Agreement, an Affiliate agrees to abide by all amendments or modifications that Qur4 elects to make.
Amendments shall be effective 30 days after publication of notice that the Agreement has been modified. Notification of amendments shall be published by one or more of the following methods: (1) posting on the Company’s official website; or (2) electronic mail (e-mail). The continuation of an Associate’s Qur4 or an Associate’s acceptance of bonuses or commissions constitutes acceptance of any and all amendments.

DELAYS

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

Qur4 shall not be responsible for delays or failures in performance of its obligations when performance is made commercially impracticable due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labour difficulties, riot, war, re, death, curtailment of a party’s source of supply, or government decrees or orders.

POLICIES AND PROVISIONS SEVERABLE

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

WAIVER

The Company never gives up its right to insist on compliance with the Agreement and with the applicable laws governing the conduct of a business. No failure of Qur4 to exercise any right or power under the Agreement or to insist upon strict compliance by an Affiliate with any obligation or provision of the Agreement, and no custom or practice of the parties at variance with the terms of the Agreement, shall constitute a waiver of Qur4 right to demand exact compliance with the Agreement. Waiver by Qur4 can be effectuated only in writing by an authorized officer of the Company. Qur4 waiver of any breach by an Affiliate shall not affect or impair Qur4 rights with respect to any subsequent breach, nor shall it affect in any way the rights or obligations of any other Associate. Nor shall any delay or omission by Qur4 to exercise any right arising from a breach affect or impair Qur4 rights as to that or any subsequent breach.

The existence of any claim or cause of action of an Affiliate against Qur4 shall not constitute a defence to Qur4 enforcement of any term or provision of the Agreement.

2 BECOMING AN AFFILIATE

REQUIREMENTS TO BECOME AN AFFILIATE

To become an Qur4 Associate, each applicant must:
Be of the age of majority in his or her state of residence;
The European union´s Territories or country that Qur4 has officially announced is open for business;
Have a valid Social Security or business Tax ID number;
Purchase an Qur4 Starter Kit and within 12 month from start purchase 100 pv
Submit a properly completed Affiliate Application and Agreement to Qur4 either in hard copy or online format
The Company must accept the Agreement.

NO PRODUCT PURCHASE REQUIRED

Except for the purchase of a Starter Kit that is sold to the Affiliates. No person is required to purchase Qur4 Products to become an Associate.

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

In order to familiarize new Affiliates with Qur4 Products, sales techniques, sales aids,
and other matters, the Company does require that they purchase a Starter Kit. Qur4 will repurchase resalable kits from any Affiliate who terminates his or her Affiliate Agreement pursuant to the terms of Section 7.3.

AFFILIATEBENEFITS

Once an Affiliate Application and Agreement has been accepted by Qur4 compliances team, the benefits of the Compensation Plan and the Affiliate Agreement are available to the new “Associate.” These benefits include the right to:

Sell Qur4 Products;
Participate in the Qur4 Compensation Plan (receive bonuses and commissions, if eligible);
Sponsor other individuals as Preferred Customers or Affiliates into the Qur4 and thereby, build a marketing organization and progress through the Qur4 Compensation Plan;
Receive periodic Qur4 literature and other Qur4 communications;
Participate in Qur4 support, service, training, motivational and recognition functions, upon payment of appropriate charges, if applicable.
Participate in promotional and incentive contests and programs sponsored by Qur4 for its Affiliates.

TERM AND RENEWAL OF AN Qur4

The term of the Affiliate Agreement is one year from the date of its acceptance by Qur4 (subject to cancellation pursuant to Section10 below).

Affiliates must renew their Affiliate Agreement each year by paying an annual renewal fee of €49,or equivalent local currency plus applicable taxes on or before the anniversary date of their Affiliate Agreement.

If the renewal fee is not paid within 30 days after the expiration of the current term of the Affiliate Agreement, the Affiliate Agreement may be cancelled without further notice and the account may be converted to a Preferred Customer account. The renewal fee will be charged to the Associate’s credit card on file with the Company.

3 OPERATING AN Qur4

3.1 ADHERENCE TO THE Qur4 COMPENSATION PLAN

Affiliates must adhere to the terms of the Qur4 Compensation Plan as set forth in official Qur4 literature. Affiliates shall not offer the Qur4 opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically set forth in official Qur4 literature.

Affiliates shall not require or encourage other current or prospective Preferred Customers or Affiliates to participate in Qur4 in any manner that varies from the program as set forth in official Qur4 literature.

Affiliates shall not require or encourage other current or prospective Preferred Customers or Affiliates to execute any agreement or contract other than official Qur4 agreements and contracts, in order to become an Qur4 affiliates. Similarly, affiliates shall not require or encourage other current or prospective Preferred Customers or Affiliates to make any purchase from, or payment to, any individual or other entity to participate in the Qur4 Compensation Plan other than those purchases or payments identified as recommended or required in official Qur4 literature.

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

3.2 ADVERTISING

3.2.1 General

All Affiliates shall safeguard and promote the good reputation of Qur4 and its Products. The marketing and promotion of Qur4, the Qur4 opportunity, the Compensation Plan, and Qur4 Products shall be consistent with the public interest, and must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices.

To promote both the Products and the opportunity Qur4 offers, Affiliates should use the sales tools and support materials produced by Qur4 or as approved by Qur4. Qur4 has carefully designed its Products, Product labels, Compensation Plan, and promotional materials to ensure that each aspect of Qur4 is fair, truthful, substantiated, and complies with the vast and complex legal requirements of federal and state laws.

Accordingly, Affiliates must submit all written sales tools, promotional materials, advertisements, and other literature to the Company for approval. Affiliate may not use such tools unless written approval is received. An Affiliate may only use a celebrity endorsement, including those celebrities who have endorsed the Product on a corporate level, with written approval from the Company and the specific, prior, written approval of the endorsing celebrity for each use of the celebrity’s name or likeness.

Qur4 Affiliates who have achieved the rank of Mentor or higher are permitted to create and sell, or to sponsor those who create and sell, sales aids or other promotional items to other Qur4 Affiliates. Such sales aids must have been previously approved by the Company and must not make any impermissible claims.

Only Affiliates who have achieved the rank of Mentor or higher and are in good standing with the Company are allowed to sell or to sponsor those who sell such aids. The Company reserves the right to approve or deny the right to sell such aids in its sole discretion.

All sales tools that receive approval will be given a unique approval number and logo that must be displayed as part of the tool. The tool must indicate that it is from an Qur4 independent affiliate and may not imply that it is a tool produced by the Company.

Any sales tools that involve online web services or online web pages must receive prior approval from the Company, and must comply with the policies governing Internet advertising in section 3.2.2. Other electronic media or tools, such as mobile phone apps, may be sold upon written approval from the Company.

Qur4 reserves the right to charge a royalty fee for the use of its trademarks, logos, and other intellectual property. Qur4 further reserves the right to rescind approval for any sales tools, promotional materials, advertisements, or other literature, and Affiliates waive all claims for damages or remuneration arising from or relating to such rescission, including claims that the Company has created a similar tool for all Affiliates.

Qur4 Affiliates are not permitted to sell or promote any sales tools at Qur4 sponsored events. Qur4 Affiliates are not permitted to sell sales tools that require a regular subscription fee or any other recurring payment.

Items that are not sales tools but are promotional items that use Qur4 trademarks and logos, such as hats or T-shirts, may be produced in limited quantities but must first receive permission from the Company. Affiliates may recoup the cost of such items but may not make a pro t on them.

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

All submissions to the Company for review must be accompanied by a fee of $250 that accompanies each submission for tools to be sold for pro t. This fee is necessary for the Company to provide training and personnel to monitor compliance with these Policies and Procedures.

Internet Advertising

Subject to the provisions of Section 3.2.2(G) herein, Affiliates may use only a Company Licensed Website to promote Product or the business opportunity over the Internet. Promoting Product or the business opportunity through an unlicensed Internet website is strictly prohibited. Affiliates that wish to operate a Company Licensed Website must meet the following criteria:

An Affiliate must enter into a website licensing agreement with the Company.
All licensed websites are subject to a one-time initial fee of €250 and yearly maintenance fees of €250, on the anniversary date of the website’s license approval. The fees are described in the Internet licensing agreement, which is available upon request. These fees are necessary for the Company to provide training and personnel to monitor Affiliate Internet websites for compliance with these Policies and Procedures.
Licensed websites must be Company-specific and may not advertise, promote, or link to any other product or opportunity. However, all such sites, and any changes thereto, must first be reviewed and approved by the Company. If approved, the Affiliate must enter into a licensing agreement with the Company and the site must display a Company-generated “licensed” designation. Changes made to the site after obtaining the initial license require written authorization from a representative of the Company’s Affiliate Education & Conduct Department.
Affiliates may not use any key words or meta tags to advertise any licensed website on the Internet if the search words or meta tags explicitly or implicitly present illegal or unsubstantiated health or income claims.
Affiliates must obtain written approval from the Company before initiating any sponsored links on Internet search engines to direct Internet tra c to a Company Licensed Website.
The Company may revoke the license for any previously approved website at any time and for any reason, including changes to federal and local laws and regulations.
Affiliates may promote the business opportunity and Products on social networking sites such as “Facebook” and “Twitter;” video sites such as “YouTube” and “Google Video;” and blogging sites such as “Blogger” (collectively “Social Media Sites”), without complying with Sections A through F, provided the following conditions are met:
All text, audio and video postings do not contain Product or income claims. For Product information, Affiliates may refer viewers to their Qur4 replicated website, the Company website, or a Company Licensed Website;
Videos posted to Social Media Sites show the text “Qur4 Independent Associate” for the entirety of the video; and
The Company may monitor the Social Media Sites for compliance with the Contract and Affiliate agrees to immediately remove or modify the Social Media Sites upon the Company’s request to comply with the Contract.

4.

3.2.2.1 Advertising and Selling Price of Products on the Internet

Each Affiliate knowledges and agrees that the advertising and selling of all Products on the Internet may only be done on a Company Licensed Website and the advertising and selling price of all Products on such website (i) if sold to an applicant, must not be lower than the wholesale price of the Products plus reasonable shipping and the amount the Company charges for taxes, handling and the applicant must also be charged the Affiliate Starter Kit

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

fee; and (ii) if sold to a non-applicant (e.g. Customer, etc.), must not be lower than the Company’s suggested retail price plus reasonable shipping and the amount the Company charges for, taxes and handling of the Product. In connection with this Section, the Affiliate also agrees that all advertising regarding the price of Products will be truthful and will not contain misleading statements (e.g. “lowest price available” which infers that an Affiliate is able to sell the Products at a price lower than other Affiliates, etc.). Affiliate knowledges and agrees that he or she shall not advertise or sell any Product on the Internet which was purchased from another Associate. Any violation of this Section by an Affiliate shall constitute a breach of the Contract and will be subject to the breach of Contract procedures set forth herein.

Sales on Online Auction Sites Prohibited

Affiliates may not advertise, promote the sale of, sell or attempt to sell Qur4 Products on any online auction or classified ad site including, without limitation, eBay, Craig’s List or Amazon. Violation of this policy may result in any of the disciplinary sanctions set forth herein including the involuntary cancellation of the Affiliate Agreement.

Cancellation of an Associate’s Qur4

If an Associate’s Qur4 is cancelled for any reason, the former Affiliate must discontinue using the Qur4 name,
and all of Qur4 trademarks, trade names, service marks, and other intellectual property, and all derivatives of such marks and intellectual property, in any postings and all Social Media sites that the former Affiliate utilized.

Trademarks and Copyrights

Qur4 will not allow the use of its trade names, trademarks, designs, or symbols by any person, including Qur4 Affiliates, without its prior, written permission. Affiliates may not produce for sale or distribution any recorded Company events and speeches without written permission from Qur4 nor may Affiliates reproduce for sale or for personal use any recording of Company-produced audio or video tape presentations.

Media and Media Inquiries

Affiliates must not attempt to respond to media inquiries regarding Qur4, its Products, or their independent Qur4. All inquiries by any type of media must be immediately referred to Qur4 Marketing Department at media@Qur4.com. This policy is designed to assure that accurate and consistent information is provided to the public as well as a proper public image.

Unsolicited Email

Qur4 does not permit Affiliates to send unsolicited commercial emails unless such emails strictly comply with applicable laws and regulations including, without limitation, the federal CAN SPAM Act. Any email sent by an Affiliate that promotes Qur4, the Qur4 opportunity, or Qur4 Products must comply with the following:

There must be a functioning return email address to the sender.
There must be a notice in the email that advises the recipient that he or she may reply to the email, via the functioning return email address, to request that future email solicitations or correspondence not be sent to him or her (a functioning “opt-out” notice).
The email must include the Associate’s physical mailing address.
The email must clearly and conspicuously disclose that the message is an advertisement or solicitation.
The use of deceptive subject lines and/or false header information is prohibited.

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

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

Qur4 may periodically send commercial emails on behalf of Affiliates. By entering into the Affiliate Agreement, Affiliate agrees that the Company may send such emails and that the Associate’s physical and email addresses will be included in such emails as outlined above. Affiliates shall honor opt-out requests generated as a result of such emails sent by the Company.

Unsolicited Faxes

Except as provided in this section, Affiliates may not use or transmit unsolicited faxes relative to the operation of their Qur4 es. The term “unsolicited faxes” means the transmission via telephone facsimile of any material or information advertising or promoting Qur4, its Products, its compensation plan or any other aspect of the company which is transmitted to any person, except that these terms do not include a fax or e-mail: (a) to any person with that person’s prior express invitation or permission; or (b) to any person with whom the Affiliate has an established business or personal relationship. The term “established business or personal relationship” means a prior or existing relationship formed by a voluntary two way communication between an Affiliates and a person, on the basis of: (a) an inquiry, application, purchase or transaction by the person regarding Products offered by such Associate; or (b) a personal or familial relationship, which relationship has not been previously terminated by either party.

Other Sales Media

Upon approval from Qur4 Compliance department, Qur4 Product(s) may be sold and/or promoted through catalogs, and other mass sales mediums, such as magazines, infomercials, television, radio, and other related sales media. Affiliates may also advertise with a vehicle wrap, using images approved by Qur4. To begin the approval process, please contact compliance@Qur4.com.

3.3 BONUS BUYING PROHIBITED

Bonus Buying is strictly and absolutely prohibited. “Bonus Buying” includes: (a) the enrolment of individuals or entities without the knowledge of and/or execution of an Independent Affiliate Application and Agreement by such individuals or entities; (b) the fraudulent enrolment of an individual or entity as an Affiliate or Preferred Customer;
(c) the enrolment or attempted enrolment of non-existent individuals or entities as Affiliates or Preferred Customers (“phantoms”); (d) Purchasing Qur4 Products on behalf of another Affiliate or Preferred Customer, or under another Associate’s or Preferred Customer’s I.D. number, to qualify for commissions or bonuses; (e) purchasing excessive amounts of goods that cannot reasonably be used or resold in a month; and/or (f) any other mechanism or artifice to qualify for rank advancement, incentives, prizes, commissions or bonuses that is not driven by bona de Product purchases by end user consumers.

3.4 BUSINESS ENTITIES

A corporation, partnership or trust (collectively referred to in this section as a “Business Entity”) may apply to be an Qur4 Affiliate by submitting its Certificate of Incorporation, Partnership Agreement or trust documents (these documents are collectively referred to as the “Entity Documents”) to Qur4, along with a properly completed Business Entity Registration form. An Qur4, may change its status under the same sponsor from an individual to a partnership, corporation or trust, or from one type of entity to another. There is a €25.00 fee for each change requested, which must be included with the written request and the completed Affiliate Application

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

and Agreement. The Business Entity Registration form must be signed by all of the shareholders, partners or trustees. Members of the entity are jointly and severally liable for any indebtedness or other obligation to Qur4,.

To prevent the circumvention of Section 3.26 (regarding transfers and assignments of Qur4), if an additional partner, shareholder, member, or other business entity affiliate is added to a business entity, the original applicant must remain as a party to the original Affiliate Application and Agreement. If the original Affiliate wants to terminate his or her relationship with the Company, he or she must transfer or assign his or her business in accordance with Section 3.26. If this process is not followed, the business shall be cancelled upon the withdrawal of the original Associate. All bonus and commission payments will be issued to the original Associate. Please note that the modifications permitted within the scope of this paragraph do not include a change of sponsorship. Changes of sponsorship are addressed in Section 3.5, below. There is a $25.00 fee for each

8 | Qur4 OPERATING AN Qur4

change requested, which must be included with the written request and the completed Affiliate Application and Agreement. Qur4 may, at its discretion, require notarized documents before implementing any changes to an Qur4. Please allow thirty (30) days after the receipt of the request by Qur4 for processing.

3.4.1 Changes to a Business Entity

Each Affiliate must immediately notify Qur4 of all changes to type of business entity they utilize in operating their businesses and the addition or removal of business Affiliates. All changes must be submitted by November 30th to become effective for the calendar year in which the change was made.

3.5 CHANGE OF SPONSOR OR PLACEMENT

To protect the integrity of all marketing organizations and safeguard the hard work of all Affiliates, Qur4 strongly discourages changes in sponsorship or placement. Maintaining the integrity of sponsorship is critical for the success of every Affiliate and marketing organization. Accordingly, the transfer of an Qur4 from one sponsor to another or change in placement is rarely permitted. Requests for change of sponsorship or placement must be submitted in writing to the Compliance Department, and must include the reason for the transfer. Transfers will only be considered in the circumstances outlined in sections 3.5.1 through 3.5.4.

3.5.1 Miss-Sponsorship

In cases in which the new Affiliate is sponsored by someone other than the individual he or she was led to believe would be his or her Sponsor, an Affiliate may request that he or she be transferred to another organization with his or her entire marketing organization intact.

Requests for transfer under this policy will be evaluated on a case-by-case basis and must be made within seven
(7) business days from the date of enrolment. The Affiliate requesting the change has the burden of proving that he or she was placed beneath the wrong sponsor.

It is up to Qur4 discretion whether the requested change will be implemented.

3.5.2 Misplacement

In those instances in which a new Affiliate is placed in a location in the binary structure that is different than what either the new Affiliate or his or her Sponsor intended (e.g., the new Affiliate was intended to be placed on the Left but was misplaced on the Right), the Affiliate may request that he or she be placed in the correct location.

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

Such a request for transfer pursuant to this policy must be made within seven (7) business days from the date of enrolment. The Affiliate requesting the change has the burden of proving that he or she was placed in the incorrect location. Qur4 will approve or not approve the change at its discretion.

Up-line Approval

The Affiliate seeking to transfer submits a properly completed and fully executed Sponsorship Transfer Form which includes the signed approval of all parties whose income will be a affected by the transfer.

Photocopied or facsimile signatures are not acceptable. The Affiliate who requests the transfer must submit a fee of €150,for administrative charges and data processing.

If the transferring Affiliate also wants to move any of the Affiliates in his or her marketing organization, each downline Affiliate must also obtain a properly completed Sponsorship Transfer Form and return it to Qur4 with the $150.00 change fee (i.e., the transferring Affiliate and each Affiliate in his or her marketing organization multiplied by $150.00 is the cost to move an Qur4,.) Downline Affiliates will not be moved with the transferring Affiliate unless all of the requirements of this paragraph are met. Transferring Affiliates must allow thirty (30) days after the receipt of the Sponsorship Transfer Forms by Qur4, for processing and verifying change requests.

In cases wherein the appropriate sponsorship change procedures have not been followed, and a downline organization has been developed in the second business by an Associate, Qur4 reserves the sole and exclusive right to determine the nal disposition of the downline organization. Resolving con icts over the proper placement of a downline that has developed under an organization that has improperly switched sponsors is often extremely di cult. Therefore, AFFILIATES WAIVE ANY AND ALL CLAIMS AGAINST Qur4 THAT RELATE TO OR ARISE FROM Qur4 DECISION REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION THAT DEVELOPS BELOW AN ORGANIZATION THAT HAS IMPROPERLY CHANGED LINES OF SPONSORSHIP.

Cancellation and Re-application

An Affiliate may legitimately change organizations by voluntarily cancelling his or her Qur4 Affiliate Agreement and remaining inactive for six (6) full calendar months. During the six month period of inactivity, the former Affiliate may not participate in any form of Affiliate activity including, but not limited to, purchasing Qur4 Products for resale, selling Qur4 Products, sponsoring other Qur4 Affiliates, attending any Qur4 functions, attending any Qur4-related functions sponsored by Qur4 Affiliates, operating or assisting in the operation of an Qur4 Associate’s Qur4 , performing any activity

POLICIES AND PROCEDURES Qur4 | 9

or function that is normally performed by an Qur4 Affiliate or such Associate’s employees, or any other activity that in the sole discretion of the Company constitutes a meaningful promotion of the Qur4 . Following the six month period of inactivity, the former Affiliate may reapply under a new sponsor; however, Qur4 may, at its discretion accept or deny the application. The former Associate’s downline will remain in their original line of sponsorship. Any attempt to cross recruit may result in disciplinary action.

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

3.6 UNAUTHORIZED CLAIMS AND ACTIONS

3.6.1 Indemni cation

An Affiliate is fully responsible for all of his or her verbal and written statements made regarding Qur4 Products and the Compensation Plan which are not expressly contained in offcial Qur4 materials. Affiliates agree to indemnify Qur4 and Qur4 directors, o cers, employees, and agents, and hold them harmless from any and all liability and/or loss (whether direct or indirect, consequential or economic loss) including judgments, civil and/or criminal penalties, damages, refunds, legal advice fees, court costs, or lost business incurred by or imposed on Qur4 as a result of the Associate’s unauthorized representations or actions. This provision shall survive the termination of the Affiliate Agreement.

3.6.2 Product Claims

No claims (which include personal testimonials) as to therapeutic, curative or bene cial properties of any Products offered by Qur4 may be made except those contained in o cial Qur4 literature. In particular, no Affiliate may make any claim that Qur4 Products are useful in the cure, treatment, diagnosis, mitigation or prevention of any diseases. Such statements can be perceived as medical or drug claims. Not only do such claims violate Qur4 policies, but they potentially violate federal and state laws and regulations, including the federal Food, Drug, and Cosmetic Act and Federal Trade Commission Act.

3.6.3 Income Claims

In their enthusiasm to enrol prospective Affiliates, some Affiliates are occasionally tempted to make income claims or earnings representations to demonstrate the inherent power of network marketing. This is counterproductive because new Affiliates may become disappointed if their results are not as extensive or as rapid as the results others have achieved. The Qur4 income potential is great enough to be highly attractive without reporting the earnings of others.

Moreover, the Federal Trade Commission and several states have laws or regulations that regulate or even prohibit certain types of income claims and testimonials made by persons engaged in network marketing. While Affiliates may believe
it bene cial to provide copies of checks, or to disclose the earnings of themselves or others, such approaches have legal consequences that can negatively impact Qur4 as well as the Affiliate making the claim unless appropriate disclosures required by law are also made contemporaneously with the income claim or earnings representation. Because Qur4 Affiliates do not have the data necessary to comply with the legal requirements for making income claims, an Associate, when presenting or discussing the Qur4 opportunity or Compensation Plan to a prospective Associate, may not make income projections, income claims, or disclose his or her Qur4 income (including the showing of checks, copies of checks, bank statements, or tax records).

3.7 RETAIL ESTABLISHMENTS

Affiliates may not sell or promote Qur4 Products or the business opportunity through a Retail Establishment. Affiliates are also prohibited from selling Products to any person who the Affiliate knows, or who has reason to suspect, will ultimately sell the Products through Retail Establishments.

3.7.1 Service-related Establishments

Affiliates may sell the Products through approved Service-related Establishments. An approved Service-related Establishment is an establishment that requires a membership and/or an appointment, and the services performed

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

are health and wellness related. Examples of approved Service-related Establishments include, but are not limited to, chiropractor, offices, salons, acupuncture clinics, and gyms. Products can only be sold through a Service-related Establishment if the owner of the establishment is an Associate. Additionally, Service-related establishments are limited to small chains or franchises with no more than five stores or physical locations.

Advertising in such an approved Service-related Establishment is limited to Products and offcial Qur4 materials, which may be displayed only in the private membership and/or appointment area of the establishment. No sales tools or signage may be visible from the outside of the establishment. Advertising of Qur4 or the Qur4 opportunity is not permitted in any other type of commercial establishment.

Before selling any Product through a service establishment, the Affiliate must provide the name and physical location(s) of the establishments to Compliance via email at compliance@Qur4.com. Qur4 has sole discretion in determining whether an establishment is a Service-related Establishment and a proper place for the sale of Products.

TRADE SHOWS, EXPOSITIONS AND OTHER SALES FORUMS

Affiliates may display and/or sell Qur4 Products at trade shows and professional expositions. Before submitting a deposit to the event promoter, Affiliates must contact the Affiliate Education and Conduct Department in writing for conditional approval, as Qur4 policy is to authorize only one Qur4 per event.

Final approval will be granted to the first Affiliate who submits an official advertisement of the event, a copy of the contract signed by both the Affiliate and the event official, and a receipt indicating that a deposit for the booth has been paid. Approval is given only for the event specified. Any requests to participate in future events must again be submitted to the Affiliate Support Department. Qur4 further reserves the right to refuse authorization to participate at any function which it does not deem a suitable forum for the promotion of its Products or the Qur4 opportunity. Approval will not be given for swap meets, garage sales, ea markets or farmer’s markets as these events are not conducive to the professional image Qur4 wishes to portray.

CONFLICTS OF INTEREST

Non solicitation and Noncompetition

Qur4 Affiliates are free to participate in other multilevel or network marketing business ventures or marketing opportunities (collectively “Network Marketing”). However, Affiliates may not directly or indirectly Recruit other Qur4 Affiliates for any other Network Marketing business. This includes general solicitations on social networking sites where “friends” include persons not personally sponsored by the Affiliate and who are already Qur4 Affiliates.

An Affiliate who participates in another Network Marketing business agrees to operate his or her Qur4 Affiliate ship entirely separate and apart from the other Network Marketing business. Accordingly, Affiliates who choose to participate in other Network Marketing businesses agree that they shall not:

display any non-Qur4 Product(s) and/or sales aids with, or in the same location as Qur4 Product(s) and/or sales aids, including web pages;
offer any non-Qur4 program, opportunity, Product, or service in conjunction with the Qur4 opportunity or Product(s) to prospective or existing Customers or Affiliates; or
offer any non-Qur4 opportunity, Products, or services at any Qur4-related meeting, seminar or convention, or within two hours and 90 kilometres radius of the Qur4 event. If the Qur4 meeting is held telephonically or on the internet, any non-Qur4 meeting must be at least two hours before or

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

after the Qur4 meeting, and on a different conference telephone number or internet web address from the Qur4 meeting.

3.9.2 Non solicitation after termination

Following the cancellation of an Associate’s independent Affiliate Agreement, and for a period of one (1) year thereafter, with the exception of an Affiliate who was personally sponsored by the former Associate, the former Affiliate may not Recruit any Qur4 Affiliate for another network marketing business.

If an Affiliate did not personally sponsor another Affiliate on his or her first level, he or she is prohibited, for one
(1) year following the date of cancellation of the Contract, from Recruiting that Affiliate to sell or purchase Products or services other than those offered by Qur4. Affiliates and the Company recognize that because network marketing is conducted through networks of independent contractors dispersed across the entire United States and internationally, and business is commonly conducted via the internet and telephone, an effort to narrowly limit the geographic scope of this non-solicitation provision would render it wholly ineffective. Therefore, Affiliates and Qur4 agree that this non-solicitation provision shall apply to all markets in which Qur4 conducts business. This shall survive termination of the Agreement.

Definition of “Recruit”

For purposes of these Policies and Procedures, the term “Recruit” means the actual or attempted sponsorship, solicitation, enrolment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another Qur4 Affiliate to enrol or participate in another multilevel marketing, network marketing or direct sales opportunity.

The conduct described in the preceding sentence constitutes recruiting even if the Associate’s actions are in response to an inquiry made by another Affiliate or Preferred Customer.

Confidential Information

Notwithstanding any other provision of the Agreement, the Affiliate shall never use Qur4 trade secrets and other Confidential Information, as further described herein, to solicit, recruit whether directly or indirectly, other Qur4 Affiliates or Customers to any other Network Marketing business.

“Confidential Information” is information disclosed to Affiliates pursuant to the Contract including, but not limited to, information regarding (1) downline organizations or up-line Affiliates, including Affiliate names and contact information, customer information, and (2) customer lists, business reports, commission or sales reports, business plans, projections, trade secrets, intellectual property, analyses, and related information and other financial and business information that would be reasonably understood to be confidential and/or give competitive advantage.

Affiliate access to such Confidential Information is confidential, and constitutes proprietary information and business trade secrets belonging to Qur4. Such Confidential Information is provided to Affiliates in strictest confidence and is made available to Affiliates for the sole purpose of assisting them in working with their respective Marketing Organizations in the development of their Qur4.

Affiliates may not use any Confidential Information for any purpose other than for developing their independent Qur4 business. Where an Affiliate participates in other direct selling or multilevel marketing ventures, the Affiliate may not be eligible, at the discretion of Qur4, to have access to certain Confidential Information. Affiliates may use the Confidential Information to assist, motivate, and train their downline Affiliates, and for no other

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

purpose. In so doing, an Affiliate may not disclose any of Qur4 Confidential Information to any third party, including, without limitation, his or her downline Affiliates. The Affiliate and Qur4 agree that, but for this agreement of confidentiality and nondisclosure, Qur4 would not provide Confidential Information to the Associate.

To protect the Confidential Information, an Affiliate shall not, on his or her own behalf, or on behalf of any other person, partnership, association, corporation or other entity:

Directly or indirectly disclose any Confidential Information to any third party;
Directly or indirectly disclose the password or other access code to his or her back-office;
Use any Confidential Information to compete with Qur4 or for any purpose other than promoting his or her Qur4 business; or
Recruit or solicit any Affiliate or customer of Qur4 listed on any report or in the Associate’s back-o ce, or in any

manner attempt to influence or induce any Affiliate or Preferred Customer of Qur4, to alter their business relationship with Qur4.

The obligation of an Affiliate to not disclose any Confidential Information shall survive cancellation or termination of the Agreement, and shall remain effective and binding irrespective of whether an Associate’s Agreement has been terminated, or whether the Affiliate is or is not otherwise affiliated with the Company, and is subject to legal enforcement by injunction and award of costs and fees necessarily incurred.

3.9.5 Information Gathered in the Promotion of the Qur4

Affiliates agree that information gathered by an Affiliate about other Affiliates by virtue of their association with Qur4, or in connection with their promotion of Qur4 Product or sales materials, is considered proprietary information that belongs to Qur4 and Affiliates are bound to the non-disclosure provisions at Section
3.9.4 of these policies and procedures in relation to this information.

TARGETING OTHER DIRECT SELLERS

Qur4 does not condone Affiliates specifically or consciously targeting the sales force of any other direct sales company to sell Qur4 Products or to become Affiliates for Qur4. Nor does Qur4 condone the solicitation or enticement, by an Associate, of any of the members of the sales force of another direct sales company to violate the terms of their contract with such other company. Should an Affiliate engage in such activity, the Affiliate bears the risk of being sued by the other direct sales company. If any lawsuit, arbitration or mediation is brought by another company against an Affiliate alleging that he or she engaged in inappropriate recruiting activity of its sales force or customers, Qur4 will not pay any of such an Associate’s defence costs or legal fees, nor will Qur4 indemnify the Affiliate for any judgment, award, or settlement.

Affiliates agree to indemnify Qur4 and Qur4 directors, officers, employees, and agents, and hold them harmless from any and all liability and/or loss (whether direct or indirect, consequential or economic loss) including judgments, civil and/or criminal penalties, damages, refunds, legal advice fees, court costs, or lost business incurred by or imposed on Qur4 as a result of any breach of the terms of this Section 3.10 by that Associate.

LINE SWITCHING, CROSS-SPONSORING AND ENTICEMENT

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

Affiliates agree that maintaining the integrity of the line of sponsorship in an Affiliate ship organization is fundamental to network marketing. Accordingly, the Affiliate agrees to not engage in Line Switching, Cross Sponsoring, and/or Enticement.

“Line Switching” means applying for and becoming an Affiliate

when already an Associate,
when holding a beneficial interest in another Affiliate ship; and/or
when less than six (6) months have passed since having been an Affiliate or having held a bene cial interest in another Affiliate ship.

“Cross-Sponsoring” means the enrolment of another Affiliate(including an Affiliate whose Agreement was terminated within the preceding six (6) months or has sponsored or purchased Product in the preceding six (6) months) to a different line of sponsorship.

12 | Qur4 OPERATING AN Qur4

“Enticement” means soliciting, encouraging, offering benefits, or in any way aiding another Affiliate to Line Switch and/or Cross-Sponsor.

Affiliates shall not use a spouse’s or relative’s name, trade names, assumed or citations names, legal entities, false government issued identification numbers, or citations ID numbers to circumvent this policy.

Because Line Switching, Cross Sponsoring, and Enticement can be detrimental to everyone involved, any Affiliate who believes or has reason to believe that another Affiliate is in violation of this policy has an affirmative obligation to notify Qur4 of such violation as soon as reasonably possible.

Should any Affiliate breach these covenants, Qur4 may take any or all of the following actions:

termination of the Affiliate Agreement of the Associate(s) in breach;
terminate the Affiliate Agreement(s) of the Associate(s) enrolled as a result of Line Switching. Qur4 is under no obligation to do any move(s) and the ultimate disposition of the organization remains within the sole discretion of Qur4.

Affiliates in violation of this policy waive all claims against Qur4 that arise from or relate to the disposition of such Affiliate ships.

ERRORS OR QUESTIONS

If an Affiliate has questions about or believes any errors have been made regarding commissions, bonuses, Downline Activity Reports, or charges, the Affiliate must notify Qur4 in writing within 60 days of the date of the purported error or incident in question. Qur4 will not be responsible for any errors, omissions or problems not reported to the Company within 60 days.

GOVERNMENTAL APPROVAL OR ENDORSEMENT

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

Neither federal nor state regulatory agencies or officials approve or endorse any direct selling or network marketing companies or programs. Therefore, Affiliates shall not represent or imply that Qur4 or its Compensation Plan have been “approved,” “endorsed” or otherwise sanctioned by any government agency.

HOLDING APPLICATIONS OR ORDERS

Affiliates must not manipulate enrolments of new applicants and purchases of Products. All Affiliate Applications and Agreements, and Product orders must be sent to Qur4 within 72 hours from the time they are signed by an Affiliate or placed by a customer, respectively.

IDENTIFICATION

All Affiliates are required to provide their proper identification or Security Number, or a Federal Employer Identification Number to Qur4 on the Affiliate Application and Agreement, Upon enrolment,

the Company will provide a unique Affiliate Identification Number to the Affiliate by which he or she will be identified. This number will be used to place orders, and track commissions and bonuses.

INCOME TAXES

Each Affiliates responsible for paying local, state and federal taxes on any income generated as an Independent Associate. If an Qur4 is tax exempt, the Federal tax identification number must be provided to Qur4.

Every year, Qur4 will provide an tax Form (Non-employee Compensation) earnings statement to each. resident who: 1) Had earnings of over €600,in the previous calendar year; or 2) Made purchases during the previous calendar year in excess of €5,000,-

INDEPENDENT CONTRACTOR STATUS

Affiliates are independent contractors, and are not purchasers of a franchise or a business opportunity. The agreement between Qur4 and its Affiliates does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the Associate.

Affiliates shall not be treated as an employee for his or her services or for Federal or State tax purposes. All Affiliates are responsible for paying local, state, and federal taxes due from all compensation earned as an Affiliate of the Company.

The Affiliate has no authority (expressed or implied), to bind the Company to any obligation. Each Affiliate shall establish his or her own goals, hours, and methods of sale, so long as he or she complies with the terms of the Affiliate Agreement, these Policies and Procedures, and applicable laws.

The name of Qur4 and other names as may be adopted by Qur4 are proprietary trade names, trademarks and service marks of Qur4. As such, these marks are of great value to Qur4 and are supplied to Affiliates for their use only in an expressly authorized manner. Use of Qur4 name on any item, including, but not limited to, email addresses, URL and business names, not produced by the Company is prohibited unless otherwise approved by Qur4.

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

INSURANCE

Affiliates may wish to arrange insurance coverage for their business. Homeowner’s insurance policies typically do not cover business-related injuries or the theft of or damage to inventory or business equipment. Contact an insurance agent to make certain that business property is protected. This can often be accomplished with a simple “Business Pursuit” endorsement attached to a homeowner’s policy.

INTERNATIONAL MARKETING

Affiliates are authorized to sell Qur4 Products and enrol Preferred Customers or Affiliates in any country that the Company has officially sanctioned to be open and available to all Affiliates for conducting business.

Qur4 may specify certain countries subject to a “Pre Pre-Launch and pre-launch Period” in which Distributors may also conduct the Distributor Business. The Company may formally announce a Pre Pre-Launch and Prelaunch Period at least thirty (30) days prior to the official opening.

An Affiliate has no authority to and shall not conduct the Qur4 nor introduce or establish the Company’s business or Product in any country that has not been officially sanctioned to be open and available to all Affiliates for conducting business or any country that is not the subject of a Pre-Launch Period announcement from the Company. This includes, but is not limited to: any attempts to secure approval for Products or business practices; register or reserve the Company names, trademarks, trade names, or Internet domain names; or establish any kind of business or governmental contact on behalf of the Company. An Affiliate may not ship Product or sales aids into any unauthorized country.

INVENTORY AND THE 70 PERCENT RULE

The Company imposes no specific minimum inventory requirement on Affiliates. An Affiliate must use his or her own judgment to determine the amount of inventory needed to sustain the Associate’s projected retail sales and personal use. Affiliates are prohibited from ordering and must not attempt to influence any other Affiliate to buy more than a reasonable amount of inventory. By placing an order, an Affiliate certifies that he or she has sold or consumed at least 70 percent of the Associate’s total inventory from previous orders.

ADHERENCE TO LAWS AND ORDINANCES

Affiliates shall comply with all federal, state, and local laws and regulations in the conduct of their businesses. Many cities and counties have laws regulating certain home-based businesses. In most cases these ordinances are not applicable to Affiliates because of the nature of their business. However, Affiliates must obey those laws that do apply to them. If a city or county official tells an Affiliate that an ordinance applies to him or her, the Affiliate shall be polite and cooperative, and immediately send a copy of the ordinance to Qur4 Compliance at compliance@ Qur4.

ONE Qur4 PER AFFILIATEAND PER HOUSEHOLD

An Affiliate may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one Qur4. No individual may have, operate or receive compensation from more than one Qur4.

Qur4 deems all persons residing in the Associate’s household a Beneficial Interest in their Affiliate ship. However, if adequate proof can be provided that another adult who is not a spouse is operating an Affiliate ship separately, Qur4 may waive this rule until circumstances change.

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

If an Affiliate marries another Associate, no e ect will be given to the provisions of this section and the two may maintain separate and independent Affiliate ships.

If an Affiliate is receiving the rights to another’s Affiliate ship upon death, Qur4 may waive this policy, subject to the succession rules herein.

ACTIONS OF HOUSEHOLD MEMBERS OR AFFILIATED INDIVIDUALS

If any member of an Associate’s immediate household engages in any activity which, if performed by the Associate, would violate any provision of the Agreement, such activity will be deemed a violation by the Affiliate and Qur4 may take disciplinary action pursuant to the Statement of Policies against the Associate. Similarly, if any individual associated in any way with a corporation, partnership, trust or other entity (collectively “affiliated individual”) violates the Agreement, such action(s) will be deemed a violation by the entity, and Qur4 may take disciplinary action against the entity.

REQUESTS FOR RECORDS

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

SALE, TRANSFER OR ASSIGNMENT OF AN Qur4

Although an Qur4 is a privately owned, independently operated business, the sale, transfer or assignment of an Qur4 is subject to certain limitations. If an Affiliate wishes to sell his or her Qur4, the following criteria must be met:

Protection of the existing line of sponsorship must always be maintained so that the Qur4 continues to be operated in that line of sponsorship.
The buyer or transferee must be eligible to become a qualified Qur4 Associate. If the buyer is an active Qur4 Associate, he or she must first terminate his or her Qur4 and wait six calendar months before acquiring any interest in a different Qur4.
Before the sale, transfer or assignment can be finalized and approved by Qur4, any debt obligations the selling Affiliate has with Qur4must be satisfied.
The selling Affiliate must be in good standing and not in violation of any of the terms of the Agreement in order to be eligible to sell, transfer or assign an Qur4.
The business that is being sold must have achieved the Paid-As Rank of Coach (or higher) for a period of two consecutive weeks prior to the date of the submission of the Sale/Transfer of Qur4 form.

Prior to selling an Qur4, the selling Affiliate must notify Qur4 Affiliate Support Department of his or her intent to sell the Qur4 by submitting a Sale/Transfer of Qur4 form together with the transfer fee of
€150,No changes in line of sponsorship can result from the sale or transfer of an Qur4.

EFFECTS OF DIVORCE OR ENTITY DISSOLUTION ON THE Qur4

Qur4 Affiliates sometimes operate their Qur4 es as husband-wife partnerships, regular partnerships, corporations, or trusts. At such time as a marriage may end in divorce or a corporation, partnership or trust (the latter three entities are collectively referred to herein as “entities”) may dissolve, arrangements must be made to assure that any divorce or entity dissolution is accomplished so as not to adversely a ect the interests and income of other businesses up or down the line

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

of sponsorship. If the separating parties fail to provide for the best interests of other Affiliates and the Company in a timely fashion, Qur4 will involuntarily terminate the Affiliate Agreement.

During the divorce or entity dissolution process, the parties must adopt one of the following methods of operation: One of the parties may, with consent of the other(s), operate the Qur4 pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners or trustees authorize Qur4 to deal directly and solely with the other spouse or non-relinquishing shareholder, partner or trustee.

The parties may continue to operate the Qur4 jointly on a “business-as-usual” basis, whereupon all compensation paid by Qur4 will be paid according to the status quo as it existed prior to the divorce ling or dissolution proceedings. This is the default procedure if the parties do not agree on the format set forth above.

Under no circumstances will the Downline Organization of divorcing spouses or a dissolving business entity be divided. Similarly, under no circumstances will Qur4 split commission and bonus checks between divorcing spouses or members of dissolving entities. Qur4 will recognize only one Downline Organization and will issue only one commission check per Qur4 per commission cycle. Commission checks shall always be issued to the same individual or entity. In the event

that parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition of commissions and ownership of the business in a timely fashion as determined by the Company, the Affiliate Agreement shall be involuntarily cancelled.

If a former spouse has completely relinquished all rights in the original Qur4 pursuant to a divorce, he or she is thereafter free to enrol under any sponsor of his or her choosing without waiting six calendar months. In the case of business entity dissolutions, the former partner, shareholder, member, or other entity affiliate who retains no interest in the business must wait six calendar months from the date of the final dissolution, before re-enrolling as an Associate.

During this six month waiting period, such individual must remain inactive as described in Section 3.5.4 above. In either case however, the former spouse or business affiliate shall have no rights to any Affiliates in their former organization or to any former retail customer. They must develop the new business in the same manner as would any other new Associate.

SPONSORING

All active Affiliates in good standing have the right to sponsor and enrol others into Qur4. Each prospective Preferred Customer or Affiliate has the ultimate right to choose his or her own Sponsor. If two Affiliates claim to be the Sponsor of

POLICIES AND PROCEDURES Qur4 | 15

the same new Affiliate or Preferred Customer, the Company shall regard the first application received by the Company as controlling the account of the new Associate.

SUCCESSION (DEATH OR INCAPACITY OF AN ASSOCIATE)

An Affiliate may provide in his or her will that his or her independent Qur4 will pass to his or her heirs.
The Company will honor such bequests provided it is provided with certified copies of the death certi cate and appropriate legal documentation establishing the right of the deceased Associate’s heirs to the business. Successors in interest must submit an amended Qur4 Affiliate Agreement to the Company. Otherwise, the Affiliate

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

Agreement will be terminated. If the legal successor to the Affiliate ship is already an existing Associate, the Contract will be assigned to the existing Affiliate and the Company will allow the multiple Beneficial Interest through inheritance.

If an Affiliate is incapable of operating his or her independent Qur4 due to incapacity, the agent, guardian, or trustee of the incapacitated Affiliate may operate the incapacitated Associate’s business on behalf of the incapacitated Affiliate upon the submission of appropriate legal documents to the Company. The authorized agent, guardian or trustee, must submit documents to the Company establishing his or her authority to act on behalf of the incapacitated Affiliate and proof of such Associate’s incapacity.

TELEMARKETING TECHNIQUES

The Federal Trade Commission and the Federal Communications Commission each have laws that restrict telemarketing practices. Both federal agencies (as well as a number of states) have “do not call” regulations as part of their telemarketing laws. Although Qur4 does not consider Affiliates to be “telemarketers” in the traditional sense of the word, these government regulations broadly de ne the term “telemarketer” and “telemarketing” so that an inadvertent action of calling someone whose telephone number is listed on the federal “do not call” registry could cause the Affiliate to violate the law. Moreover, these regulations must not be taken lightly, as they carry significant penalties (up to €10,000,per violation).

Therefore, Affiliates must not engage in telemarketing in the operation of their Qur4 business.

The term “telemarketing” means: the placing of one or more telephone calls to an individual or entity to induce the purchase of an Qur4 product, or to recruit them for the Qur4 opportunity. “Cold calls” made to prospective customers or Affiliates that promote either Qur4 products or the Qur4 opportunity constitute telemarketing and are prohibited. However, a telephone call(s) placed to a prospective customer or Affiliate (a “prospect”) is permissible under the following situations:

If the Affiliate has an established business relationship with the prospect. An “established business relationship” is a relationship between an Affiliates and a prospect based on the prospect’s purchase, rental, or lease of goods or services from the Associate, or a financial transaction between the prospect and the Associate, within the eighteen (18) months immediately preceding the date of a telephone call to induce the prospect’s purchase of a product or service.
The prospect’s personal inquiry or application regarding a product or service offered by the Associate, within the three (3) months immediately preceding the date of such a call.
If the Affiliate receives written and signed permission from the prospect authorizing the Affiliate to call. The authorization must specify the telephone number(s) which the Affiliate is authorized to call.
The Affiliate may call family members, personal friends, and acquaintances. An “acquaintance” is someone with whom the Affiliate has at least a recent rst-hand relationship within the preceding three months. However, if the Affiliate engages in “card collecting”, the FTC may consider this a form of telemarketing that is not subject to this exemption. If an Affiliate engages in calling “acquaintances,” they must make such calls on an occasional basis only and not make this a routine practice.

In addition, Affiliates shall not use automatic telephone dialling systems relative to the operation of their Qur4 business. The term “automatic telephone dialling system” means equipment which has the capacity to:

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

a) store or produce telephone numbers to be called, using a random or sequential number generator; and
b) to dial such numbers.

4 RESPONSIBILITIES OF AFFILIATES
4.1 CHANGE OF ADDRESS, TELEPHONE, AND E-MAIL ADDRESSES

To ensure timely delivery of Products, support materials, and commission checks, it is critically important that the Qur4 les are current. Street addresses are required for shipping. Affiliates planning to change their e-mail address or move must send their new address and telephone numbers to Qur4 Corporate O ces to the attention of the Affiliate Support Department. To guarantee proper delivery, two weeks advance notice must be provided to Qur4 on all changes.

16 | Qur4 RESPONSIBILITIES OF AFFILIATES

CONTINUING DEVELOPMENT OBLIGATIONS

Ongoing Training

Any Affiliate who sponsors another Affiliate into Qur4 must perform a bona de assistance and training function to ensure that his or her downline is properly operating his or her Qur4. Affiliates must have ongoing contact and communication with the Affiliates in their Downline Organizations. Examples of such contact and communication may include, but are not limited to: newsletters, written correspondence, personal meetings, telephone contact, voice mail, electronic mail, and the accompaniment of downline Affiliates to Qur4 meetings, training sessions, and other functions.

Up-line Affiliates are also responsible to motivate and train new Affiliates in Qur4 Product knowledge, effective sales techniques, the Qur4 Compensation Plan, and compliance with Company Policies and Procedures. Communication with and the training of downline Affiliates must not, however, violate Section 3.2 (regarding the development of Affiliates-produced sales aids and promotional materials).

Affiliates should monitor the Affiliates in their Downline Organizations to guard against downline Affiliates making improper Product or business claims, or engaging in any illegal or inappropriate conduct.

Increased Training Responsibilities

As Affiliates progress through the various levels of leadership, they will become more experienced in sales techniques, Product knowledge, and understanding of the Qur4 program. They will be called upon and expected to share this knowledge with lesser experienced Affiliates within their organization.

Ongoing Sales Responsibilities

Regardless of their level of achievement, Affiliates have an ongoing obligation to continue to personally promote sales through the generation of new customers and through servicing their existing customers.

4.3 NON-DISPARAGEMENT

Qur4 wants to provide its independent Affiliates with the best Products, compensation plan, and service in the industry. Accordingly, Qur4 values constructive criticisms and comments. All such comments should be submitted in writing to the Affiliate Support Department. While Qur4 welcomes constructive input, negative comments and remarks made in the field by Affiliates about the Company, its Products, or Compensation Plan serve

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

no purpose other than to sour the enthusiasm of other Qur4 Affiliates. For this reason, and to set the proper example for their downline, Affiliates must not disparage, demean, or make negative remarks about Qur4, other Qur4 Affiliates, Qur4 Products, the Compensation Plan, or Qur4 directors, officers, or employees.

PROVIDING DOCUMENTATION TO APPLICANTS

Affiliates must provide the most current version of the Policies and Procedures and the Compensation Plan to individuals whom they are sponsoring to become Affiliates before the applicant signs an Affiliate Agreement. Additional copies of Policies and Procedures can be downloaded from Qur4 website.

Reporting Policy Violations

Affiliates observing a Policy violation by another Affiliate should report the violation directly to the attention of the Qur4 Compliance Department by sending an email to compliance@Qur4.com. Details of the incidents such as dates, number of occurrences, persons involved, and any supporting documentation should be included in the report.

SALES REQUIREMENTS
PRODUCT SALES

The Qur4 Compensation Plan is based on the sale of Qur4 Products and take fully advantage of online ecommerce store to end consumers. Affiliates must fulfil personal and Downline Organization retail sales requirements (as well as meet other responsibilities set forth in the Agreement) to be eligible for bonuses, commissions and advancement to higher levels of achievement. Affiliates must satisfy the Personal Sales Volume and Group Sales Volume requirements to fulfil the requirements associated with their rank as specified in the Qur4 Compensation Plan. “Personal Sales Volume” includes purchases made by the Affiliate and purchases made by the Associate’s personal customers. “Group Sales Volume” shall include the total Sales Volume of all Affiliates in his or her marketing organization but shall not include the Associate’s Personal Sales Volume.

NO TERRITORY RESTRICTIONS

There are no exclusive territories granted to anyone. No franchise fees are required.

WILL CALL

Where will call service is available, an Affiliate may pick up the order at the will call location. The Company may ship, at the Associate’s expense, Product that has been marked for will call pick-up if the Product has not been picked up by the Affiliate within ninety (90) calendar days of the scheduled auto ship date, or the end of the calendar month, whichever is latest. If the Product is shipped to the Affiliate from the will call location, the Company may use any payment method on file to collect the shipping fees. Alternatively, the Company may, in its sole discretion, declare the order abandoned and cause the Affiliate to forfeit the order. If the order is abandoned, the Affiliate releases the Company from any further obligation or liability.

SALES RECEIPTS

All Affiliates must provide their retail customers with two copies of an official Qur4 sales receipt at the time of the sale. These receipts set forth the Customer Satisfaction Guarantee as well as any consumer protection rights the order by the current state law. Affiliates must maintain all retail sales receipts for a period of two years

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

and furnish them to Qur4 at the Company’s request. Records documenting the purchases of Affiliates’ Preferred Customers will be maintained by Qur4.

Remember that customers must receive two copies of the sales receipt. In addition, Affiliates must verbally inform the buyer of his or her cancellation rights.

BONUSES AND COMMISSIONS 6.1 BONUS AND COMMISSION QUALIFICATIONS

An Affiliate must be active and in compliance with the Agreement to qualify for bonuses and commissions. So long as an Affiliate complies with the terms of the Agreement, Qur4 shall pay commissions to such Affiliate in accordance with the Compensation Plan. The minimum amount for which Qur4 will issue payment is €15, If an Associate’s bonuses and commissions do not equal or exceed €15.00, Qur4 will accrue the commissions and bonuses until they total €15.00. Payment will be issued once €15, has been accrued.

ADJUSTMENT TO BONUSES AND COMMISSIONS

Affiliates receive bonuses and commissions based on the actual sales of Products to end consumers. When a Product is returned to Qur4 for a refund or is repurchased by the Company, either of the following may occur at the Company’s discretion:

the bonuses and commissions attributable to the returned or repurchased Product(s) will be deducted, in the month in which the refund is given, and continuing every pay period thereafter until the commission is recovered, from the Affiliates who received bonuses and commissions on the sales of the refunded Products; or
the Affiliates who earned commissions based on the sale of the returned Products will have the corresponding points deducted from their Group Volume in the next month and all subsequent months until it is completely recovered.

REPORTS

All information provided by Qur4 in online or telephonic downline activity reports, including but not limited to personal and group sales volume (or any part thereof), and downline sponsoring activity is believed to be accurate and reliable. Nevertheless, due to various factors including but not limited to the inherent possibility of human and mechanical error; the accuracy, completeness, and timeliness of orders; denial of credit card and electronic check payments; returned Products; credit card and electronic check charge-backs; the information is not guaranteed by Qur4 or any persons creating or transmitting the information.

ALL PERSONAL AND GROUP SALES VOLUME INFORMATION IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESS OR IMPLIED, OR REPRESENTATIONS OF ANY KIND WHATSOEVER. IN PARTICULAR BUT WITHOUT LIMITATION THERE SHALL BE NO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, OR NON-INFRINGEMENT.

TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, Qur4 AND/OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION WILL IN NO EVENT BE LIABLE TO ANY AFFILIATEOR ANYONE ELSE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT ARISE OUT OF THE USE OF OR ACCESS TO PERSONAL AND GROUP SALES VOLUME INFORMATION (INCLUDING BUT NOT LIMITED TO LOST PROFITS, BONUSES, OR COMMISSIONS, LOSS OF OPPORTUNITY, AND DAMAGES THAT MAY RESULT FROM INACCURACY, INCOMPLETENESS, INCONVENIENCE, DELAY, OR LOSS OF THE USE OF THE INFORMATION), EVEN IF Qur4 OR OTHER PERSONS CREATING OR TRANSMITTING THE

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

INFORMATION SHALL HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. TO THE FULLEST EXTENT PERMITTED BY LAW, Qur4Qur4 OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION

18 | Qur4 PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASE

SHALL HAVE NO RESPONSIBILITY OR LIABILITY TO THE AFFILIATEOR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY OR OTHER THEORY WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO.

Access to and use of Qur4 online and telephone reporting services and reliance upon such information is at the Associate’s own risk. All such information is provided to Affiliates “as is”. If an Affiliate is dissatisfied with the accuracy or quality of the information, the sole and exclusive remedy is to discontinue use of and access to Qur4 online and telephone reporting.

PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASE

RETURNS GUARANTEE

Initial Order Returns

Qur4 offers, a 100% 30-day money-back guarantee to all Preferred Customers, Retail Customers, and Affiliates on their initial enrolment order.

If, for any reason an Affiliate or a customer is dissatisfied with their initial Product order, the Affiliate or customer may return the unused Product within 30 days, for a replacement if something with the is wrong with the product, exchange or a full refund of the purchase price (less shipping costs). In case of more the one case: when more than two cases are purchased, all Products in addition to the one used cases must be in Resalable condition to receive a refund.

If an Affiliate wishes to return their enrolment order exceeding €240,the return will be deemed an inventory repurchase and the Company shall repurchase the inventory pursuant to the terms of Section 7.2, and the Associate’s Agreement shall be cancelled. All Associate, Preferred Customer and Retail Customer, enrolment orders purchased directly from Qur4 must be returned to Qur4 at the Associate’s/ customer’s expense.

All Products refunded are subject to bonus withholdings and qualification recalculations based on the original purchase date. Withholdings and refunds are based on enrolment package units, not individual units. Used or opened Product is only available for return/refund within 30 days of purchase date.

General Returns

Requirements

All returns that are not initial order purchases are subject to the follow conditions:

Returns must have been personally purchased by the Affiliate from Qur4. (Purchases from other Affiliates or third parties are not subject to refund.)

Returns must be in resalable condition (see Definition of “Resalable” in Section 7.2).

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

Returns in resalable condition and returned within 30-days of purchase will receive a 100% refund (less shipping costs.)
Returns in resalable condition and returned after 30-days, but within 90-days of purchase will receive a 90% refund (less shipping costs.)
Product and marketing materials returned after 90-days will not be refunded, except as an inventory repurchase as specified in Section 7.2.
All returned Product exceeding $240 in any 12-month period, will be deemed an inventory repurchase and the Company shall repurchase the inventory pursuant to the terms of Section 7.2, and the Associate’s Agreement shall be cancelled.

7.1.2.2 Auto-ship Returns

In order to cancel an auto-ship order, Affiliates must contact Affiliate Support at least 3-business days before the autoship order is to go through. All other policies listed in Section 7.1.2 apply to returns for autoship orders.

7.1.3 Retail Purchase from an Associate’s Inventory

If, for any reason, a retail customer is dissatisfied with their initial order of Qur4 Products, the retail customer may return the unused/used portion of the Product to the Affiliate from whom it was purchased, within 30 days of the original purchase date, for a full refund of the purchase price (less shipping costs). All Affiliates agree to honor this refund policy for their retail customers. After the initial order, retail customers may return Product for a full refund within 30-days of the order (less shipping) as long as Product is in resalable condition (see Definition of “Resalable” in Section 7.2).

In the event an Affiliate issues such a refund to a retail customer, the Affiliate may return the refunded Products to Qur4 within 30-days of the original, retail order date for a full Product replacement provided the Affiliate

includes a copy of the retail receipt with the empty packaging. All retail orders and returns are subject to confirmation by the Company. The Product must be received by Qur4 within ten (10) days from the date on which the retail customer returned the merchandise to the Associate. Affiliates are responsible for shipping charges for all replacement Products sent from Qur4.

The following provision sets forth the minimum refund permitted by law to a retail customer:

A retail customer who makes a purchase of €25.00 or more has three business days after the sale or execution of a contract to cancel the order and receive a full refund consistent with the cancellation notice on the order form.

When an Affiliate makes a sale or takes an order from a retail customer who cancels or requests a refund within the three business day period, the Affiliate must promptly refund the customer’s money as long as the Products are returned to the Affiliate in substantially as good condition as when received. Additionally, Affiliates must verbally inform customers of their right to rescind a purchase or an order within three business days, and ensure that the date of the order or purchase is entered on the order form. All retail customers must be provided with two copies of an official Qur4 sales receipt at the time of the sale. The back of the receipt provides the customer with written notice of his or her rights to cancel the sales agreement.

7.2 INVENTORY REPURCHASE UPON CANCELLATION

Upon cancellation of an Associate’s Agreement, the Affiliate may return Starter Kits, Products and sales aids for a 90% refund. In order to receive a refund from Qur4 pursuant to this policy, the following requirements must be met:

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

The items being returned must have been personally purchased by the Affiliate from Qur4 (purchases from other Affiliates or third parties are not subject to refund);

The items must be in Resalable condition (see Definition of “Resalable” below); and
The items must have been purchased from Qur4 within half a year prior to the date of cancellation.

If the purchases were made by credit card, the refund will be credited back to the same account. If an Affiliate was paid a bonus or commission based on a Product(s) that he or she purchased, and such Product(s) is subsequently returned for a refund, the bonus and/or commission that was paid to the Affiliate based on that Product purchase will be deducted from the amount of the refund.

Products and Sales aids shall be deemed “Resalable” if each of the following elements is satisfied:

they are unopened and unused;
packaging and labelling has not been altered or damaged;
they are in a condition such that, in accordance with commercially reasonable practice within the trade, the merchandise may be resold at full price; and
they are returned to Qur4 within one year from the date of purchase. Any merchandise that is clearly identified at the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be Resalable.

PROCEDURES FOR ALL RETURNS

The following procedures apply to all returns for refund, repurchase, or exchange:

All merchandise must be returned by the Affiliate or customer who purchased it directly from Qur4.

Affiliates must call Affiliate Support to initiate a Return Material Authorization (RMA). Affiliate Support will provide an RMA number which must be written legibly on the box(es) of each returned Product. Affiliates must return Products to Qur4 with the RMA number prominently displayed. Only returned Product with an RMA number will be refunded.
The Company accepts returns of full cases only. Individual bottles may not be returned for refund, repurchase, or exchange.
Proper shipping carton(s) and packing materials are to be used in packaging the Product(s) being returned for replacement, and the best and most economical means of shipping is suggested. All returns must be shipped to Qur4 shipping pre-paid. Qur4 does not accept shipping-collect packages. The risk of loss in shipping for returned Product shall be on the Associate. If returned Product is not received by the Company’s Distribution Centre, it is the responsibility of the Affiliate to trace the shipment.

If an Affiliate is returning merchandise to Qur4 that was returned to him or her by a personal retail customer, the Product must be received by Qur4 within ten (10) days from the date on which the retail customer returned the merchandise to the Associate, and must be accompanied by the sales receipt the Affiliate gave to the customer at the time of the sale.

All commissionable and qualifying volume will be deducted from the Affiliate account in connection to the return. All volume generating returns may result in Affiliates having future commissions withheld.
All payments are refunded to original form of payment to the original payee.

No refund, exchange, or replacement of Product will be made if the conditions of these rules are not met.

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS

DISCIPLINARY SANCTIONS

Violation of the Agreement, these Policies and Procedures, violation of any common law duty, including but not limited to any applicable duty of loyalty, any illegal, fraudulent, deceptive or unethical business conduct, or any act or omission by an Affiliate that, in the sole discretion of the Company may damage its reputation or goodwill (such damaging act or omission need not be related to the Associate’s Qur4 ), may result, at Qur4 discretion, in one or more of the following corrective measures:

Issuance of a written warning or admonition;
Requiring the Affiliate to take immediate corrective measures;
Imposition of a ne, which may be withheld from bonus and commission checks;
Loss of rights to one or more bonus and commission checks;
Qur4 may withhold from an Affiliate all or part of the Associate’s bonuses and commissions during the period that Qur4 is investigating any conduct that allegedly violates the Agreement.
If an Associate’s business is cancelled for disciplinary reasons, the Affiliate will not be entitled to recover any commissions withheld during the investigation period; Suspension of the individual’s Affiliate Agreement for one or more pay periods; Involuntary termination of the offender’s Affiliate Agreement; Suspension and/or termination of the offending Associate’s Qur4 website or website access; Any other measure expressly allowed within any provision of the Agreement or which Qur4 deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the Associate’s policy violation or contractual breach; In situations deemed appropriate by Qur4, the Company may institute legal proceedings for monetary and/or equitable relief.

GRIEVANCES AND COMPLAINTS

When an Affiliate has a grievance or complaint with another Affiliate regarding any practice or conduct in relationship to their respective Qur4 business, the complaining Affiliate should first report the problem to his or her Sponsor who should review the matter and try to resolve it with the other party’s up-line sponsor. If the matter involves interpretation or violation of Company policy, it must be reported in writing to the Affiliate Education & Conduct Department at the Company. The Affiliate Education & Conduct Department will review the facts and attempt to resolve it. If it is not resolved, it will be referred to the Dispute Resolution Board for final review and determination.

DISPUTE RESOLUTION BOARD

The purpose of the Dispute Resolution Board is to: (1) review appeals of disciplinary sanctions; and (2) review matters between Qur4Associate. After the response or settlement instituted by Affiliate Education & Conduct has been denied or otherwise remains unresolved, the Dispute Resolution Board reviews evidence, deliberates, and responds to current outstanding issues on a collective basis.

An Affiliate may submit a written request for a telephonic or in-person hearing within seven (7) business days from the date of the written notice by Qur4 of disciplinary action; or (2) the written decision of the Affiliate Education & Conduct Department regarding disputes between Affiliates. All communication with Qur4 and the Affiliate seeking resolution of a dispute must be in writing. It is within the DRB’s discretion whether a claim is accepted for review. If the DRB agrees to review the matter, it shall schedule a hearing within 30 days of receipt of the Associate’s written request. All evidence (e.g., documents, exhibits, etc.) that an Affiliate desires to have considered by the DRB must be submitted to Qur4no later than seven business days before the date of the hearing. The Affiliate shall bear all of the expenses related to his or her attendance and the attendance of any witnesses he or

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

she desires to be present at the hearing. The decision of the Dispute Resolution Board will be nal and subject to no further review. During the pendency of the claim before the DRB, the Affiliate waives his or her right to pursue arbitration or any other remedy.

Following issuance of a sanction, the disciplined Affiliate may appeal the sanction to the Dispute Resolution Board (“DRB”). Associate’s appeal must be in writing and received by the Company within 15 days from the date of Qur4 cancellation notice. If the appeal is not received by Qur4 within the 15-day period, the sanction will be final.

The Affiliate must submit all supporting documentation with his or her appeal correspondence. If the Affiliate les a timely appeal of cancellation, the Dispute Resolution Board will review and reconsider the cancellation, consider any other appropriate action, and notify the Affiliate in writing of its decision.

MEDIATION

Prior to instituting an arbitration, the parties shall meet in good faith and attempt to resolve any dispute arising from or relating to the Agreement through non-binding mediation. One individual who is mutually acceptable to the parties shall be appointed as mediator.

The mediator’s fees and costs, as well as the costs of holding and conducting the mediation, shall be divided equally between the parties. Each party shall pay its portion of the anticipated shared fees and costs at least 10 days in advance of the mediation.

Each party shall pay its own attorney’s fees, costs, and individual expenses associated with conducting and attending the mediation. Mediation shall be held in Flensburg Germany, and shall last no more than two business days.

ARBITRATION

If mediation is unsuccessful, any controversy or claim arising out of or relating to the Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.

Affiliates waive all rights to trial by jury or to any court. All arbitration proceedings shall be held in Flensburg Germany. All parties shall be entitled to all discovery rights pursuant to the Federal Rules of Civil Procedure. There shall be one arbitrator, an attorney at law, who shall have expertise in business law transactions with a strong preference being an attorney knowledgeable in the direct selling industry, selected from the panel which the Europian Arbitration Panel provides.

Each party to the arbitration shall be responsible for its own costs and expenses of arbitration, including legal and ling fees. The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to a judgment in any court of competent jurisdiction.

This agreement to arbitration shall survive any termination or expiration of the Agreement.

Notwithstanding the foregoing, nothing in these Policies and Procedures shall prevent Qur4 from applying to and obtaining from any court having jurisdiction a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction or other relief available to safeguard and protect Qur4 interest prior to, during or

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

following the ling of any arbitration or other proceeding or pending the rendition of a decision or award in connection with any arbitration or other proceeding.

8.6 GOVERNING LAW, JURISDICTION AND VENUE

Jurisdiction and venue of any matter not subject to arbitration shall reside exclusively in Flensburg Germany The Arbitration Act shall govern all matters relating to arbitration. The law of Germany govern all other matters relating to or arising from the Agreement. Notwithstanding the foregoing, and the mediation and arbitration provisions in Sections 8.4 and 8.5,

PAYMENT AND SHIPPING 9.1 RETURNED CHECKS

All checks returned by an Associate’s bank for insufficient funds will be re-submitted for payment. A €25.00 returned check fee will be charged to the account of the Associate. After receiving a returned check from a customer or an Associate, all future orders must be paid by Credit Card, money order or cashier’s check. Any outstanding balance owed to Qur4 by an Affiliate for insufficient funds checks and returned check fees will be withheld from subsequent bonus and commission checks.

RESTRICTIONS ON THIRD PARTY USE OF CREDIT CARDS AND CHECKING ACCOUNT ACCESS

Affiliates shall not permit other Affiliates or Preferred Customers to use his or her credit card, or permit debits to their checking accounts, to enrol or to make purchases from the Company.

SALES TAXES

In designing the Qur4 opportunity, one of our guiding philosophies has been to free Affiliates from as many administrative, operational, and logistical tasks as possible. In doing so, Affiliates are free to concentrate on those activities that directly affect their incomes, namely Product sales and enrolment activities. To these ends, Qur4 relieves Affiliates of the burdens of collecting and remitting sales taxes, ling sales tax reports, and keeping records relative to sales taxes.

By virtue of its business operations, Qur4 is required to charge local sales taxes on all purchases made by Affiliates and Preferred Customers, and remit the taxes charged to the respective states. Accordingly, Qur4 will collect and remit sales taxes on behalf of Affiliates, based on the suggested retail price of the Products, according to applicable tax rates in the state or province to which the shipment is destined.

If an Affiliate has submitted, and Qur4 has accepted, a current Sales Tax Exemption Certificate and Sales Tax Registration License, sales taxes will not be added to the invoice and the responsibility of collecting and remitting sales taxes to the appropriate authorities shall be on the Associate. Exemption from the payment of sales tax is applicable only to orders which are shipped to a state for which the proper tax exemption papers have been led and accepted. Applicable sales taxes will be charged on orders that are drop-shipped to another state. Any sales tax exemption accepted.

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

Qur4 INACTIVITY, RECLASSIFICATION & CANCELLATION

RECLASSIFICATION & CANCELLATION

EFFECT OF CANCELLATION

So long as an Affiliate remains active and complies with the terms of the Affiliate Agreement and these Policies and Procedures, Qur4 shall pay commissions to such Affiliate in accordance with the Compensation Plan. An Associate’s bonuses and commissions constitute the entire consideration for the Associate’s e orts in generating sales and all activities related to generating sales (including building a downline organization). Following an Associate’s non-renewal of his or her Affiliate Agreement, or voluntary or involuntary cancellation of his or her Affiliate Agreement (all of these methods are collectively referred to as “cancellation”), the former Affiliate shall have no right, title, claim or interest to the marketing organization which he or she operated, or any commission or bonus from the sales generated by the organization.

An Affiliate whose business is cancelled will lose all rights as an Associate. This includes the right to sell Qur4 Products and services and the right to receive future commissions, bonuses, or other income resulting from the sales and other activities of the Associate’s former downline sales organization. In the event of cancellation, Affiliates agree to waive all rights they may have, including but not limited to property rights, to their former downline organization and to any bonuses, commissions or other remuneration derived from the sales and other activities of his or her former downline organization.

Following an Associate’s cancellation of his or her Affiliate Agreement, the former Affiliate shall not hold himself or herself out as an Qur4 Affiliate and shall not have the right to sell Qur4 Products or services. An Affiliate whose Affiliate Agreement is cancelled shall receive commissions and bonuses only for the last full pay period he or she was active prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation).

When a vacancy occurs due to the voluntary or involuntary termination of an Qur4 Associate, each personally sponsored Affiliate who was sponsored by the terminated Associate, on the date of the cancellation, will now be sponsored by the terminated Associate’s sponsor. For example, if A sponsors B, and B sponsors C1, C2, and C3, if B terminates her business, C1, C2, and C3 will “roll-up” to A and become part of A’s personally sponsored group.

RECLASSIFICATION FOLLOWING CANCELLATION

If an Associate’s Affiliate Agreement is cancelled for failure to pay the annual renewal fee, and the Affiliate was enrolled in the Company’s Auto-ship program (i.e. Preferred Customer), the Preferred Customer Agreement shall remain in force and the former Affiliate shall be reclassified as a Preferred Customer. If the former Affiliate was not a Preferred Customer, he or she will be entitled to continue purchasing Products directly from the company at the Preferred Customer price. There is no charge for a former Affiliate to re-register as an Affiliate if he or she does so within six months of the date of cancellation provided that the renewal fee is paid, but the Affiliate will lose all of the former downline.

INVOLUNTARY CANCELLATION

An Associate’s violation of any of the terms of the Agreement, including any amendments that may be made by Qur4 in its sole discretion, may result in any of the sanctions listed in Section 8.1, including the involuntary cancellation of his or her Affiliate Agreement. Cancellation shall be effective on the date on which written notice is mailed, faxed, or delivered to an express courier, to the Associate’s last known address (or fax number), or to his/her attorney, or when the Affiliate receives actual notice of cancellation, whichever occurs first.

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

Qur4 reserves the right to terminate all Affiliate Agreements upon thirty (30) days written notice in the event that it elects to: (1) cease business operations; (2) dissolve as a corporate entity; or (3) terminate distribution of its Products via direct selling.

VOLUNTARY CANCELLATION

A participant in this network marketing plan has a right to cancel at any time, regardless of reason. Cancellation must be submitted in writing to the Company at its principal business address. The written notice must include the Associate’s signature, printed name, address, and Affiliate I.D. Number. If an Affiliate is also on the Company’s Auto-ship program (a Preferred Customer), the Associate’s Preferred Customer Agreement shall continue in force unless the Affiliate also specifically requests that his or her Preferred Customer Agreement also be cancelled.

NON-RENEWAL

An Affiliate may also voluntarily cancel his or her Affiliate Agreement by failing to renew the Agreement on its anniversary date. The Company may also elect not to renew an Associate’s Agreement upon its anniversary date.

CREDIT CARD CHARGEBACKS

If an Affiliate contacts his or her credit card company and attempts to charge back any Product purchase from the Company, such action shall be deemed a voluntary cancellation of the Affiliate Agreement by the Associate. If the Affiliate also has an Auto-ship Agreement with Qur4, the charge back shall also be deemed the voluntary cancellation of the Associate’s Auto-ship Agreement. Similarly, if a Preferred Customer contacts his or her credit card company and attempts to charge back a purchase made by credit card, such action will be deemed the voluntary cancellation of the Preferred Customer Agreement.

11 DEFINITIONS

Active Customer:
A Customer who purchases Qur4 Products and whose account has been paid for the ensuing year. Active Affiliate, An Affiliate who has generated at least 100 PSV in Product sales during one month of the preceding six months.

Active Rank:
The term “active rank” refers to the current rank of an Associate, as determined by the Qur4 Compensation Plan, for any month. To be considered “active” relative to a particular rank, an Affiliate must meet the criteria set forth in the Qur4 Marketing and Compensation Plan for his or her respective rank. (See the definition of “Rank” below.)

Agreement:
The contract between the Company and each Affiliate includes the Affiliate Application and Agreement, the Qur4 Policies and Procedures, the Qur4 Compensation Plan, and the Business Entity Form (where appropriate), all in their current form and as amended by Qur4 in its sole discretion. These documents are collectively referred to as the “Agreement.”

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

Auto ship Policy:
As a service and convenience to Affiliates, Qur4 offers an auto ship program in which Affiliates may select the option of having a reoccurring order automatically processed each month. The Affiliate can call Affiliate Support or go through their back office to enter their credit card information, choose a date with which the auto ship will be processed and what to include in the order. This auto ship service can be turned o at any time again through Affiliate Support or the back office.

Beneficial Interest:
A person is deemed to have a Beneficial Interest in an Qur4 if he/she/it has: (1) any direct or indirect ownership in the Qur4 as an individual, partner, shareholder, member, manager, beneficiary, trustee, or principal of the business; (2) has any actual or de facto control over the Qur4 ; (3) receives any income directly or indirectly from the Qur4 (other than the receipt of income pursuant to the Compensation Plan by an upline Associate); (4) receives familial support from the Qur4 ; (5) receives spousal support derived from the Qur4 ; (6) is a member of the Associate’s immediate household; (7) is a spouse or co-habitant; or (8) has any other similar interest in the Qur4.

Cancel:
The termination of an Associate’s business. Cancellation may be either voluntary or involuntary.

Downline Activity (Genealogy) Report:
A monthly report generated by Qur4 that provides critical data relating to the identities of Affiliates, sales information, and enrolment activity of each Associate’s Marketing Organization. This report contains confidential and trade secret information which is proprietary to Qur4.

Downline Leg:
Each one of the individuals enrolled immediately underneath the Affiliate and their respective marketing organization represents one “leg” in a marketing organization.

Group Sales Volume:
The commissionable value of Qur4 Products sold by an Associate’s Marketing Organization. Group Sales Volume does not include the Personal Sales Volume of the subject Associate. (Starter Kits and sales aids have no Sales Volume.)

Immediate Household:
Heads of household and dependent family members residing in the same house.
Inactivity — An Affiliate who has not generated at least 100 PSV in Product sales during one month of the preceding six consecutive months.

Level,
The layers of downline Preferred Customers and Affiliates in a particular Associate’s Marketing Organization. This term refers to the relationship of an Affiliate relative to a particular up-line Associate, determined by the number of Affiliates between them who are related by sponsorship. For example, if A sponsors B, who sponsors C, who sponsors D, who sponsors E, then E is on A’s fourth level.

Marketing Organization:
The Preferred Customers and Affiliates sponsored below a particular Associate.
Official Qur4 Material — Literature, audio or video tapes, and other materials developed, printed, published and distributed by

POLICIES AND PROCEDURES Qur4

Qur4 Ltd Network

Personal Production:
Moving Qur4 Products to an end consumer for personal use.

Personal Sales Volume (PSV)
The commissionable value of Products sold in a calendar month: (1) by the Company to an Qur4 to Affiliates.

24 | Qur4 DEFINITIONS

Associate; and (2) by the Company to the Associate’s customers and personally enrolled Preferred Customers.

Product:
Any good or service offered by the Company and sold through independent Affiliates.

Rank:
The “title” that an Affiliate has achieved pursuant to the Qur4 Compensation Plan.

Recruit:
For purposes of Qur4 Conflict of Interest Policy (Section 3.9), the term “Recruit” means the actual or attempted sponsorship, solicitation, enrolment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another Qur4 Affiliate or Preferred Customer to enrol or participate in another multilevel marketing, network marketing or direct sales opportunity. Except in California, the foregoing conduct constitutes recruiting even if the Associate’s actions are in response to an inquiry made by another Affiliate or Preferred Customer.

Resalable:
Products and Sales aids shall be deemed “resalable” if each of the following elements is satisfied: 1) they are unopened and unused; 2) packaging and labelling has not been altered or damaged; 3) they are in a condition such that, in accordance with commercially reasonable practice within the trade, the merchandise may be resold at full price; 4) it is returned to Qur4 within one year from the date of purchase; 5) the Product contains current Qur4 labelling. Any merchandise that is clearly identified at the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be resalable.

Retail Customer:
An individual or entity that purchases Qur4 Products, but who is not an Associate, Preferred Customer, or an immediate household family member of an Associate.
Retail Establishment – Any enterprise with a physical location that is engaged in the sale of goods or services and that is not a Service-related Establishment. Examples include but are not limited to mass market and specialty stores. For purposes of this definition, a Retail Establishment does not include the Internet when an Affiliate complies with the relevant sections of these Policies and Procedures regarding authorized Internet sales and advertising.

Retail Sales:
Sales to a Retail Customer. If a sale is made to a customer who subsequently submits an Qur4 Affiliate Agreement within 30 days from the date of the sale, or if an immediate household family member of the Retail Customer submits an Qur4 Affiliate Agreement within 30 days of the sale, such sale shall not constitute a Retail Sale. An Associate’s personal purchases from Qur4 do not constitute Retail Sales.

Roll-Up:
The method by which a vacancy in a Marketing Organization left by an Affiliate whose Affiliate Agreement has been cancelled is filled.

POLICIES AND PROCEDURES CROWD4

Qur4 Ltd Network

Service-related Establishment:

An establishment that requires a membership and/or an appointment, and the services performed are health and wellness related. Examples of approved Service-related Establishments include, but are not limited to, chiropractor offices, salons, acupuncture clinics, and gyms.

Sponsor:
An Affiliate who enrols a Preferred Customer or another Affiliate into the Company, and is listed as the Sponsor
on the Affiliate Application and Agreement. The act of enrolling others and training them to become Affiliates is
called “sponsoring.”

Starter Kit:
A selection of Qur4 training materials and business support literature that each new Independent Affiliate is required to purchase. The Starter Kit is sold to Affiliates at the Company’s cost.

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