livethesource
Policies and Procedures

Introduction

livethesource , "the Company", "LTS") is a network marketing company which honors the rules and standards outlined in this document. This document and all of the items contained therein are an integral part of the agreement between LTS and the individual entrepreneur. This document was created to protect the rights of all entrepreneurs and to provide a framework within which each entrepreneur may work on an ethical, secure and effective basis. This document should be read in its entirety.

The policies and procedures set forth below shall be deemed severable, and the invalidity or unenforceability of any provision shall not affect the validity or unenforceability of any other provisions hereof. If any provision of these policies and procedures, or the application thereof to any person or any circumstance, is invalid or unenforceable, (i) a suitable and equitable provision shall be submitted therefore in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (ii) the remainder of these Policies and Procedures and the application of such provision to other persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction. The most recent and applicable Policies and Procedures will be posted on LTS's website at: www.livethesource.com The Policies and Procedures posted on LTS's website will be enforced from the date of posting. Therefore, Entrepreneurs should refer regularly to the website for the most recent version of these Policies and Procedures. By completing LTS's Entrepreneur Agreement, the individual Entrepreneur agrees to uphold, to adhere to, and to follow LTS's Policies and Procedures, and understands and agrees that the violation of any of the Policies stated herein may, within the sole discretion of LTS, be sufficient grounds for termination of the Entrepreneur's contract and relationship with LTS.

Please read the following document carefully, and apply only after you understand fully and agree to the matters in this document.

1. Purpose of the Policies and Procedures
LTS has developed these guidelines with the intention of assisting in the success of LTS and its Entrepreneurs by:

- Providing equal opportunity for rewards through the Compensation Plan.

- Defining the contractual relationships between LTS and its entrepreneurs.

- Helping to bring LTS's programs into compliance with regulatory requirements, and by providing specifics about the programs to appropriate agencies as required.

- Providing to its independent entrepreneurs a guide that informs them of the things that they must do and the things that they must avoid to fulfill their contractual obligations.

- Establishing a basis for problem solving between entrepreneurs and the Company.
LTS encourages all Entrepreneurs to understand and to follow all of the rules within these guidelines as we work together to conduct our livethesource business in a legal and harmonious manner.

2. Code of Ethics
All LTS Entrepreneurs agree, as part and condition of their Entrepreneur Agreement, to conduct their business according to the high standards of LTS's Code of Ethics, which specifically focuses on important areas of principle and activity. With the awareness and agreement that violation of the following standards is sufficient grounds for termination of the Entrepreneur's Agreement with LTS, the Entrepreneur hereby agrees to:

- Conduct his/her business dealings in an honest, ethical manner at all times.

- Strive constantly to do things that will lead to a positive result for other LTS entrepreneurs, customers, LTS, and for the entrepreneur.

- Strive to make service the key principle of the LTS business, helping customers and other entrepreneurs alike.

- Follow LTS's Policies and Procedures to the best of his/her ability, giving effort to follow the spirit and the letter of these guidelines.

- Demonstrate the highest standards of professionalism in the entrepreneur's business, building a good reputation for the entrepreneur and for LTS.

- Honor all proprietary interests from other companies, not breach any covenants or agreements, and not violate any state or federal guidelines or laws.

- Truthfully identify to the prospective customer the following: himself/herself as an Entrepreneur, LTS, and the products and the purposes of any solicitation. Contact with the prospective customer will be made in a reasonable manner and during reasonable hours so as to avoid intrusiveness. The entrepreneur will discontinue a sales presentation immediately upon the request of a customer.

- Offer products for sale in an accurate and truthful manner as to price, grade, quantity, make, value, performance, quality, currency, and availability.

- Refrain from exaggerating personal income or income potential in general, and stress to potential LTS entrepreneurs the level of personal effort and sales volumes required to succeed in the business.

- Not require or encourage an Entrepreneur to purchase inventory in an amount that exceeds unreasonably that which can be expected to be resold and/or consumed within a reasonable period of time.

- Provide support and education to customers to ensure their complete satisfaction with Company products and services, recognizing that follow-up service, support, and education are vitally important to the success of the LTS business.

- Make no representations about LTS's products, services, technologies, or Compensation Plan other than the information contained in officially-approved corporate websites, literature, and publications.

- Not abuse the goodwill of the Entrepreneur's association with LTS, nor permit the use of the Entrepreneur's name or reputation to further or to promote other business interests that are competitive to LTS without the prior written consent of LTS.

- Make no disparaging remarks about other companies' products or services, or about those of LTS. Similarly, make no willful denigration of the activities or personalities of Company executives or management, fellow LTS entrepreneurs, or entrepreneurs of other companies.

3. Entrepreneur Authorization

3.1 Initial Application.
To become a LTS Entrepreneur, each applicant must complete, sign, and submit to LTS a current Application and Agreement Form ("Application") (located on LTS's website). Failure to complete any of the Application's information will be sufficient grounds for its rejection. Applicants are also bound, through the completion of the Application, to these Policies and Procedures. LTS reserves the right to terminate any Application within its sole discretion at any time, without comment or explanation.

3.2 Co-Applicants.
An applicant submitting an Application as a sole proprietorship or with a DBA name will be classed as the principal person, and their SSN will be used for tax and other purposes relating to the Entrepreneurship. If a co-Applicant is to be named to the Entrepreneurship, that individual's name and details must also be included on the original Application. Once approved, Applicant and co-Applicant have equal access to the Entrepreneurship. Each may transfer roles as Applicant or co-Applicant by providing written notification to LTS, with such notification to be signed and dated by each party.

3.3 Entrepreneurship Term and Renewal.
Entrepreneur authorization is for one (1) year from the date of acceptance as an Entrepreneur by Company. Entrepreneur renewal is required annually. It is the sole responsibility of the Entrepreneur to renew his/her entrepreneur status in a timely manner, irrespective of any reminders supplied by LTS. Entrepreneurs who fail to renew by the renewal date will automatically have their entrepreneurship position terminated, and will forfeit all sponsorship rights, positions earned, and LTS correspondence. Re-applying entrepreneurs must meet all of the requirements of a new Applicant before authorization renewal will be approved.

3.4 Entrepreneur Identification.
For internal administration and identification purposes, and also to comply with strict governmental regulations, an individual Social Security Number (SSN) will be required from each Applicant or co-Applicant, even where a federal Tax Identification Number (EIN) has been provided. On approval of Application, a unique Identification (ID) number will be assigned by LTS; this ID number will be required in all transactions or communications between the Entrepreneur and LTS.

3.5 Applicant Age Requirement.
An Applicant must be at least eighteen (18) years of age to be accepted as a LTS Entrepreneur.

3.6 Corporate and other Non-Individual Applicants.
An Application may be accepted from a legal entity such as a corporation, partnership, Trust, or Limited Liability Company (LLC). The submitted Form will require details of all entity participants, and must be signed by a legal representative who is authorized to bind the entity, and must be accompanied by:

- the entity's federal EIN;

- a copy of the entity's articles of organization (if an LLC), or a copy of the articles of incorporation (if a corporation), or a copy of the Trust Agreement (if a Trust);

- a signed and appropriately-attested authorization or resolution from the entity authorizing the signatory to act on behalf of the entity in this matter.

3.7 Change of Status.
A Entrepreneur may change status from an individual to one of the above-referenced entities (or vice versa) by written advice to LTS and by provision of the appropriate Forms and other required documentation. If changing from an individual to an entity, all entity participants will need to have been listed as participants in the original Application. If changing from an entity to an individual, a new Application listing the Applicant (and the co-Applicant, if applicable) should be submitted; in such a change, the co-Applicant would need to have been included as a participant on the original Application. If an entity (corporation, partnership, Trust, or LLC) wishes to dissolve or otherwise cease operating, to resign as an Entrepreneur, or if one or more of the entity's members wish to leave and to create a new Entrepreneurship, the following procedures must be followed:

a. Dissolution or Resignation – If an entity wishes to dissolve, to cease its operations, or to resign as an Entrepreneur, the entity must provide to LTS a written advice to this effect, with such advice containing the signature of each member of the entity (shareholders and officer of a corporation, members of a partnership, members of a Trust, or members or managers of a LLC), and stating the date on which such change is to become effective. The change will be made effective by LTS on the first day of the succeeding commission month. Upon satisfaction of these requirements, members of the entity may choose to create new Entrepreneurships with a sponsor of their own choice, or may purchase an Entrepreneurship through LTS's Sale and Transfer process (see 3.25). In such an event, LTS may waive the normal 12-month waiting period. If LTS does not receive the above-specified properly-certified documents and advices, it shall consider the Entrepreneur to continue to be the entity listed in the current Application, and none of the respective entity's members will be approved for creation of a new Entrepreneurship.

b. Withdrawal of one or more members from an entity that is an Entrepreneur – If one or more members of an entity that is a LTS Entrepreneur wish to withdraw or to resign from the entity, the entity must provide to LTS a written advice to this effect, with such advice containing the notarized signature of each member of the entity (shareholders and officer of a corporation, members of a partnership, members of a Trust, or members or managers of a LLC), and stating the date on which such change is to become effective. The change will be made effective by LTS on the first day of the succeeding commission month. Upon satisfaction of these requirements, the withdrawing members of the entity may choose to create new Entrepreneurships with a sponsor of their own choice, or may purchase an Entrepreneurship through LTS's Sale and Transfer process (see 3.25). In such an event, LTS may waive the normal 12-month waiting period. If LTS does not receive the above-specified properly-certified documents and advices, it shall consider the Entrepreneur to continue to be the entity listed in the current Application, and none of the respective entity's withdrawing members will be approved for creation of a new Entrepreneurship. If the withdrawing members choose to be in another Entrepreneurship, they may not hold any ownership or other financial interest in the original Entrepreneurship that is an entity.

3.8 Change of Entrepreneur Information.
Requests by Entrepreneurs for changes of address, name, or ID number must be submitted to LTS in writing, and must be signed by the Entrepreneur requesting the change.

3.9 No Multiple Entrepreneurships.
No individual may have beneficial interest in more than one Entrepreneurship (or entity that is an Entrepreneurship) at any one time without LTS's written approval. LTS does not allow beneficial ownership in simultaneous interests.

3.10 Spouses.
An Entrepreneur may not directly or indirectly sponsor his/her spouse (see 3.12). The spouse of an Entrepreneur may not:

- act as a retail customer to his/her own spouse;

- establish an Entrepreneurship under his/her spouse or another sponsor. However, a spouse may be listed as a co-Applicant on the standard LTS Application. A spouse may also be added to an existing Entrepreneurship by application in writing to LTS, with the writing dated and signed by both spouses, giving the new spouse's name and SSN, and indicating which spouse is to the Applicant and which is to be the co-Applicant.

3.11 Family members.
Entrepreneurs may sponsor other family members who are at least 18 years of age.

3.12 Marriage of Entrepreneurs.
In the event that two LTS Entrepreneurs marry, they may choose either:

- to unite on a single Entrepreneurship, or

- to retain both existing Entrepreneurships. This constitutes one of two exceptional circumstances under which spouses may own separate LTS Entrepreneurships.

3.13 Divorce/Separation of Entrepreneurs.
In the event of final divorce or court-entered legal separation for spouses listed on a single Entrepreneurship, the individuals may choose either:

- to retain both parties on the existing Entrepreneurship, or

- to withdraw one party from the existing Entrepreneurship. In this event, the following procedure shall apply:

- provide to LTS a written letter of resignation containing:

- notarized signatures of both parties;

- an explanation of the way in which the parties agree to handle the future of the Entrepreneurship;

- the date of the final divorce decree or the date the separation was entered as a court order.

- provide to LTS a certified copy of the respective court order for divorce or separation. Upon satisfaction of these requirements, the resigning spouse may choose to create a new Entrepreneurship with a sponsor of his/her own choice, or may purchase an Entrepreneurship through LTS's Sale and Transfer process ( see 3.25). In such an event, LTS may waive the normal 12-month waiting period. If LTS does not receive the above-specified properly-certified documents and advices, it shall consider the Entrepreneur to continue to be the person(s) listed in the current Application, and no individual from the existing Entrepreneurship will be approved for the creation of a new Entrepreneurship.

3.14 Re-Marriage of Divorced Entrepreneurs.
In the event of re-marriage or re-cohabitation of individuals who have experienced divorce or court-entered legal separation and who have chosen to maintain separate Entrepreneurships, the individuals may choose either:

- to unite on a single Entrepreneurship, or

- to retain both existing Entrepreneurships. This constitutes one of two exceptional circumstances under which spouses may own separate LTS Entrepreneurships.

3.15 Voluntary Resignation/Termination of an Entrepreneurship.
An Entrepreneur may resign (that is, terminate Entrepreneur authorization) at any time by providing to LTS written notice to this effect. An Entrepreneur who has resigned is eligible to re-apply for an Entrepreneurship a minimum of 12 months after the date of his/her last recorded LTS product purchase. During that 12-month period, the former Entrepreneur is not permitted to participate in any way in the building or development of a LTS Entrepreneur group or downline.

3.16 Company Termination of an Entrepreneurship.
LTS may terminate an Entrepreneur's authorization at any time for cause. This includes, but is not limited to, violation of these Policies and Procedures or LTS's Code of Ethics, a breach of any of the Entrepreneur Application and Agreement, or any misstatement or misrepresentation made by the Entrepreneur in the Agreement or any other form, as determined in LTS's sole discretion. (see 5.25)

3.17 Sale or Transfer of an Entrepreneurship.
A LTS Entrepreneur may sell, assign, or otherwise transfer his/her rights or position only after receiving LTS's express written approval. LTS reserves the right to approve the transaction, but will not unreasonably withhold permission. An Entrepreneur who sells his/her Entrepreneurship will not be eligible to re-qualify as an Entrepreneur for a period of at least twelve (12) months from the date on which LTS approves the sale in writing, unless such eligibility period is waived in writing by LTS's President and CEO. All Entrepreneurship transfers must include a written, dated, signed and notarized agreement between transferor and transferee. The person or entity acquiring the transferor's position will be required to submit a new Application to LTS for approval. Upon acceptance of the Application, the position will be assigned a new ID, but will maintain the same position, with placement, as it had prior to the approved transfer. Entrepreneurs must comply with the restrictions described in paragraph 3.10, above, as well as all other applicable Policies and Procedures in reference to the sale or transfer of Entrepreneurships.

3.18 Death of an Entrepreneur.
Upon the death of an Entrepreneur, the Entrepreneurship and all pertaining rights will pass to the Entrepreneur's legal successor(s) when LTS receives appropriate legal documentation, including:

- a certified copy of the Death Certificate;

- either: a certified copy of a court order distributing the Entrepreneurship to the deceased's beneficiary/beneficiaries, or a trust certification certifying as to the rightful succession of the decedent's interest in the Entrepreneurship. If one or more of the legal successors or beneficiaries is already a LTS Entrepreneur and is not the deceased's immediate sponsor, that successor or beneficiary must sell, assign, or transfer one of the Entrepreneurships as set out in 3.25. If one or more of the legal successors or beneficiaries is already a LTS Entrepreneur and is the deceased's immediate sponsor, the deceased's Entrepreneurship must either merge or become part of the successor's or beneficiary's Entrepreneur position as if a sale or transfer has occurred, or the deceased's Entrepreneurship may be sold by the successor/beneficiary under the Sale or Transfer provisions (see 3.25). In the event of a sale under these conditions, the requirement to offer the Entrepreneurship to the Entrepreneur's upline sponsors is waived.

3.19 Zones of Operation.
All LTS Entrepreneur activities must be conducted exclusively within those countries or zones of operation designated by LTS. Currently, those zones are the United States and its territories, including Puerto Rico, Guam, and the U.S. Virgin Islands. If a Entrepreneur re-locates outside LTS's then-current designated zones of operation but maintains a street address within LTS's designated zones, the Entrepreneur may continue marketing and sponsoring activities, but only within LTS's zones of operation.

3.20 Territories of Operation.
LTS has no exclusive territory assignments, and the LTS Entrepreneur may conduct LTS business anywhere within the countries or areas designated as zones of operation by LTS.

3.21 Information Requests.
LTS provides numerous services to its Entrepreneurs without charge. However, Entrepreneurs occasionally make requests requiring special time and effort to fulfill. Requests in this category include typically copies of receipts, related paperwork, or in-depth commission information that must be calculated or extracted. These and other special requests are available to the Entrepreneur for a cost of US$20 per hour, with a minimum charge of US$20 per request. Entrepreneurs may be asked for a signed confirmation of special work requests before such work requests are commenced. If a special service is requested due to an error caused by LTS, charges for work under this request may be waived.

3.22 Power of Attorney.
All documentation being signed on behalf of another party must be submitted with an original notarized Power of Attorney, giving authority to the signing person, by the person on whose behalf the document is being executed.

3.23 Company's Documentation Rights not Waived.
LTS's failure to request or to obtain initially back-up documentation does not waive LTS's rights to require or to obtain such information and/or documentation at a later time.

3.24 Inventory Purchases.
No inventory purchase is required to become a LTS Entrepreneur, although LTS strongly urges the purchase of an Entrepreneur's Kit. This Kit is the ultimate source of information about LTS, its Policies and Procedures, its Products, and its Compensation Plan Any initial purchase of products or services is made entirely at the Entrepreneur's discretion, and this fact should be stated clearly to any potential Entrepreneur

3.25 Entrepreneurship Sale and Transfer Process.
Before an Entrepreneurship may be offered to any other party, it must first be offered in turn to the three consecutive upline levels, beginning with the Entrepreneur's sponsor. These offers must be in writing, with copies to LTS. If purchased by an upline, the Entrepreneurship will be terminated and the Entrepreneurship's downline will be rolled up to the purchasing sponsor. If all three upline sponsors decline the written offer, the same offer may be extended to an outside party who is not currently nor has been a LTS Entrepreneur, or who has not held an interest in a LTS Entrepreneurship for twelve (12) consecutive months. If the terms and conditions of the offer change, the revised proposal must first be offered to the three upline sponsors in the same order as specified above.

3.26 Entrepreneurship Voluntary Termination Procedures.
To terminate an Entrepreneurship voluntarily, the Entrepreneur may either:

- submit a signed letter of resignation to LTS from all parties listed on the Application, with a copy to the Entrepreneur's sponsor.

- If returning unsold LTS products, request a refund from LTS according to the procedures set out in 8.11. No involvement by the former Entrepreneur with LTS products, services, or the Compensation Plan is permitted after resignation without re-application to, and acceptance by, LTS.

3.27 Re-Application of a Former Entrepreneur.
Any involvement in the marketing of LTS products and/or services or the Compensation Plan, or participation in any LTS event, meeting, or training after an Entrepreneur has resigned and before the expiration of the twelve-month hiatus period, shall be cause for denying reentry into the Organization. To re-apply as a Entrepreneur, a former Entrepreneur must:

- submit a new Application, with a chosen sponsor, no less than twelve (12) months after resignation or termination date from LTS;

- purchase an Entrepreneur's Kit;

- begin at entry level to build a new downline organization.

3.28 Company Disciplinary Action.
Any violation by a LTS Entrepreneur of these Policies and Procedures or the Agreement may result, based on such factors such as the seriousness of the violation, the Entrepreneur's past conduct, and LTS's own internal investigation, in either suspension or immediate termination of an Entrepreneur. The decision to suspend or to terminate an Entrepreneur shall be in LTS's sole discretion, and any failure by LTS to terminate or suspend a Entrepreneur or to enforce any breach of the Policies and Procedures shall not be deemed a continuous waiver in the event of any future breach or waiver of the Policies and Procedures. If LTS determines that a violation of the Policies and Procedures warrants an initial suspension, LTS will issue a written, mailed notice to the Entrepreneur's last known address, advising of any complaint and/or violation of these Policies and Procedures. The Entrepreneur may respond in writing, but no other communication of any other kind (including telephone calls or e-mail) shall be permitted. If LTS determines to suspend a Entrepreneur, the following procedures shall apply:

- LTS will send, by certified mail or overnight delivery, a letter of intent to suspend the Entrepreneurship.

- the Entrepreneur will have ten business days from the date of the suspension letter to respond in writing and to present any facts or other information to LTS. All facts and information must be in writing. A failure to respond shall be deemed by LTS to mean that the Entrepreneur agrees with the grounds for suspension and the Entrepreneurship will be terminated.

- upon review of any response and additional investigation, as deemed appropriate by LTS, the Entrepreneur will be notified in writing of LTS's decision either to reinstate or to terminate the Entrepreneurship.

- if LTS determines to terminate the Entrepreneurship, the date of termination shall be the date of notification of the Entrepreneur's suspension. Notification of termination shall also be sent to the Entrepreneur's sponsor and any immediate upline Director.

- all decisions of LTS are final. During the suspension period, the Entrepreneur will be excluded from all interactions with LTS, including any of the following:

- The ability to place orders or to sponsor new Entrepreneurs and retail customers.

- Access to records of bonuses and commissions.

- Use of the LTS website and Entrepreneur web portal.

- Participation in any LTS event, meeting, training, or contest, even if the qualification period for such activities was prior to the effective date of suspension. If a commission check comes due during the suspension period, the check will be held until a decision is made by LTS. If the Entrepreneurship is reinstated, the commission check will be sent with the notice of reinstatement. If the Entrepreneurship is terminated, a commission check with commissions due will be sent for the last commission period prior to the date of termination, which shall be the date of notification of suspension. If LTS determines that, based on such factors as the seriousness of the violation of the Policies and Procedures, the Entrepreneur's past conduct, and LTS's own internal investigation, an immediate termination of the Entrepreneurship is warranted, the Entrepreneur will receive written notice advising of the immediate termination, together with a statement setting forth the violation of these Policies and Procedures. Copies of the notice of termination will be sent to the Entrepreneur's sponsor and any immediate upline Diamond in that organization. The decision of LTS to terminate the Entrepreneurship shall be final and cannot be appealed. Upon termination, the former Entrepreneur will lose all Entrepreneur rights, will be removed from the sponsor's downline, will forfeit any right to future commissions, will lose all right to any incentives or awards, and will have the Entrepreneur's downline organization transferred to his/her upline sponsor in the next commission period. (see 5.25)

4. Responsibilities and Practices

4.1 Entrepreneurs' Responsibilities as Independent Contractors.
All LTS Entrepreneurs, as independent contractors, are responsible for any expenses incurred by them which result from building of maintaining a downline including, but not limited to, responsibility for any required licenses, fees, insurance, liabilities, taxes (including sales, income, social security, Medicare, and unemployment taxes – see below), and operating expenses. The LTS Entrepreneur is not a purchaser of a franchise or an Entrepreneurship. The Entrepreneur may not represent himself/herself as an employee, agent, franchisee, or partner of LTS, and may make no verbal or printed representations or implications that the independent Entrepreneurship business is a joint venture with LTS. The Entrepreneurship is solely the Entrepreneur's business practice, and the Entrepreneur has no authority to bind LTS to any obligations or liabilities relating to the Entrepreneurship business or otherwise. LTS will not be responsible for any claims, damages, or liabilities arising out of the operation of any Entrepreneur's business (except any arising from Product Liability), and the Entrepreneur hereby agrees to indemnify and to hold LTS harmless from any tax-related penalties and charges relating to charges incurred because of incorrect or incomplete information provided to LTS by the Entrepreneur.

4.2 Taxes.
The Entrepreneur, as the owner of an independent business, is responsible for all federal, state, and local taxes, which apply to the Entrepreneurship. LTS will not advise on tax compliance; the Entrepreneur should consult the appropriate taxing authorities, a competent tax advisor, or accountant.

a. Sales Tax. LTS products may be subject to sales tax in various state and local jurisdictions. LTS has registered with the applicable jurisdictions to collect and to remit sales tax on behalf of the Entrepreneurship. Therefore, sales tax will be charged on each order placed with LTS unless the Entrepreneur files a resale tax exemption (see below). Sales tax is based on the ultimate retail price of the products, plus shipping and handling charges (where appropriate). Tax rates are determined according to the jurisdiction to which the products are shipped. If an Entrepreneur sells any product purchased from LTS to a third party, Entrepreneur may be liable for collection and remission of sales tax on any amount above the price paid for the product when purchased from LTS.

b. Resale Tax Exemption. In some states, Entrepreneurs may be eligible to claim a resale tax exemption and, by doing so, to retain responsibility for the collection, reporting, and payment of all such taxes. To claim the resale tax exemption, a Entrepreneur should obtain a copy of the state's Resale Certificate and should submit this form plus a copy of the Entrepreneur's current Sales Tax Permit to LTS. The certificate and permit must be in the same name as the Entrepreneurship. LTS requires up to two business days to process this tax exemption and cannot refund any sales tax collected before the exemption is granted or advised. (Please note that sales to Entrepreneurs in some states require collection by LTS of sales tax even though an exemption certificate was issued to the Entrepreneur in those states.)

c. Income Tax. U.S. Federal and State tax laws impose certain reporting requirements with which LTS fully complies. For the proper administration of these reporting requirements, each Entrepreneur must present proper taxpayer identification numbers. It is the Entrepreneur's responsibility to ensure that the correct name, legal address, and taxpayer identification number are correctly reflected in LTS's records. Failure to ensure that this information is correct could result in the imposition of penalties, fines, or back-up withholding by government authorities or termination of the Entrepreneurship. At the end of each calendar year, LTS will provide to the Entrepreneur and the IRS a copy of Form 1099-MISC (or other appropriate tax form), as required by law, for all income earned over the stated minimum. Reported compensation will include, but is not limited to, total commissions paid by LTS plus the fair market value of any merchandise or Incentive Trip Awards to the Entrepreneurship from LTS. If the stated minimum in effect is $600, and the Entrepreneur earns $700, the $700 will be reported on Form 1099-Misc.

d. Self-Employment Tax. The Entrepreneur is responsible for any self-employment (such as Social Security and Medicare) taxes due on earnings. The Entrepreneur should consult the IRS, a competent tax advisor, or an accountant.

e. Unemployment Tax. Since the Entrepreneur is an independent contractor, LTS makes no contribution to any federal or state unemployment funds on behalf of the Entrepreneur. Because there are no contributions, the Entrepreneur is ineligible to claim unemployment compensation as a result of being or having been a LTS Entrepreneur.

f. Local Business Taxes and Permits. Various states and municipalities may require tax permits or fees from persons conducting business within their jurisdictions. It is the Entrepreneur's responsibility to be familiar with, and to comply fully with, such legal requirements.

4.3 Entrepreneurship Hours.
LTS does not dictate the Entrepreneurship's hours of operation, selling or marketing methods or plans, time required, funds expended, or any other aspect of the Entrepreneurship's business practice. Entrepreneurs may not represent that there are any such requirements.

4.4 Representation to Potential Entrepreneurs.
Each Entrepreneur must clearly state in all presentations to prospective Entrepreneurs the following:

1. No product purchase is required of anyone at any time to participate as a LTS Entrepreneur.

2. There is no compensation within the LTS program solely for sponsoring an Entrepreneur.

4.5 Product Liability Insurance
livethesource maintains product liability insurance on all of its products. livethesource Entrepreneurs should refer any questions regarding product liability or potential claims to the Company for comment. While livethesource stands behind its products and their safety, and maintains insurance to protect itself and its Entrepreneurs in the unlikely event of a problem with any product, livethesource feels that it is prudent and recommended that all Entrepreneurs carry appropriate business liability insurance for their personal business practices. No Protection for Improper Use – An example of liability for improper use is a violation of the health claims restrictions or usage recommendations. livethesource covers only those uses and purposes specifically set forth on the container or in livethesource literature. An Entrepreneur who attempts to change or modify the label or packaging, who misrepresents the products or who makes claims other than those set forth in livethesource 's literature is depriving him/herself of the protection afforded by livethesource 's liability insurance.

4.6 Product Descriptions.
In discussions with customers, potential customers, other Entrepreneurs, or potential Entrepreneurs, Entrepreneurs must describe LTS products and programs truthfully. LTS is responsible only for material printed in LTS-approved literature or other media. Entrepreneurs are solely responsible for any and all media that the Entrepreneurship may produce.

4.7 Policies and Procedures.
When giving a potential Entrepreneur an Application, the Entrepreneur must also provide a copy of the Policies and Procedures.

4.8 Sales Receipts.
Entrepreneurs must provide to all customers an official Sales Receipt, which must include the date of sale, the Entrepreneur's (or, Entrepreneurship's) name, address, and telephone number, a complete list of the products sold, the price and extension of each product item, and the terms of Cancellation (where applicable).

4.9 Entrepreneur Compliance.
LTS will monitor the Entrepreneur's compliance with its established and published Policies and Procedures. Such compliance may include, but is not limited to, review of Entrepreneur's advertising materials, electronic media, training materials, etc. Comments from LTS regarding compliance should not be construed as approval, disapproval, or sanctioning by LTS, but should be considered only as LTS's demand and/or warning to the Entrepreneur to comply with the Agreements and/or Policies and Procedures between the Entrepreneur and LTS. Each Entrepreneurship must be self-policing as to its own strict compliance with the established Policies and Procedures, and must assure its own compliance with these Agreements and Policies and Procedures by being intimately familiar with such Agreements and Policies and Procedures. Failure by the Entrepreneurship to comply fully with the Policies and Procedures may be cause for termination. In order to facilitate prompt communication between LTS and the Entrepreneurship, it is important that the Entrepreneurship must provide to LTS all of the Entrepreneurship's current contact information including, but not limited to, address, telephone number(s), facsimile number(s), website address and email address.

4.10 Company Compliance Monitoring.
LTS's Compliance Department will make determinations, in accordance with the Entrepreneurship's Agreement and LTS's Policies and Procedures, as to whether there has been a violation by the Entrepreneur of the Agreement or the Policies and Procedures. The Compliance Department will respond to all questions posed by Entrepreneurs as quickly as possible. Entrepreneurs must comply with all demands of LTS's Compliance Department within a reasonable time, and must provide the Compliance Department with all requested information as promptly as possible.

4.11 Personal and Professional Behavior.
LTS requires its Entrepreneurs to engage at all times in proper behavior both personally and professionally. Proper conduct and integrity is of the utmost importance to LTS and to its Entrepreneur network. Each Entrepreneur's personal behavior and business practices must at all times be consistent with LTS's integrity and high ethical standards, and must not harm or reflect unfavorably upon LTS or its Entrepreneurs. LTS shall have the right, in its sole discretion and based on such factors as the seriousness of any violation of the Policies and Procedures, past conduct, and LTS's own internal investigation, to immediately suspend and/or immediately terminate, pursuant to these Policies and Procedures, any Entrepreneur, regardless of rank, who engages in improper behavior or business practices. Examples of such inappropriate behavior or business practices would be arrest or indictment for any crime, harassing or pressuring any other Entrepreneur or member of the public, or engaging in any behavior that would reflect negatively on LTS or its Entrepreneurs.

4.12 Changes, Amendments, and Invalidity.
LTS reserves the exclusive right to add, delete, terminate, or modify the terms of wholesale pricing, Policies and Procedures, the Compensation Plan, product literature, products, or electronic or voice messages at any time. LTS will provide written notice of such actions through letters, ENews, Fax-On-Demand, or posting on LTS's website. All additions, deletions, and modifications will automatically become a part of the Agreement by and between LTS and its Entrepreneurs and will become effective on the date the notice is given. If, due to changes in the law or for any other reasons, LTS makes changes to any portion of these Policies and Procedures, the Application and Agreement Form, or the Compensation Plan, or should any other documents or forms of LTS become legally invalid, then the balance of the documents and forms shall remain in full force and effect.

4.13 Notification of Change.
It is the Entrepreneurship's responsibility to notify LTS by letter, fax, or telephone if there is any change regarding Entrepreneurship information. Information such as address, contact and payment information may also be updated through LTS's website at www.livethesource.com.

5. Prohibited Practices
The LTS program is built upon sales of LTS products and services to the ultimate consumer, and is to be conducted in a manner prescribed by LTS. As an Entrepreneur of LTS products and services, you are expected to comply with these Policies and Procedures and any amendments to them, and also to comply with the Compensation Plan Failure to comply with any portion of these can be grounds for immediate suspension or termination.

5.1 Company Marks and Logos.
Entrepreneurs may not obtain, use, or distribute materials of any kind which describe or use LTS's names, products, programs, trademarks, copyrights, or otherwise-protected materials without LTS's prior written approval.

5.2 Material Facts.
Entrepreneurs must neither misstate nor omit any material fact about the LTS program and products.

5.3 Income Representation.
When discussing the Compensation Plan and income potential for LTS Entrepreneurs, Entrepreneurs must:

- not disclose their own income;

- explain that Entrepreneur's individual earnings depend solely upon their level of effort and personal commitment;

- NOT give random, hypothetical examples of what is mathematically possible, nor suggest that it is easy to attain high income levels;

- NOT make false or misleading statements about the income of the Entrepreneur or that of any other Entrepreneur, exaggerate income potential, or guarantee the success of any prospect.

5.4 Product Claims.
When talking about LTS products, Entrepreneurs should follow the guidelines set down in current LTS-authorized promotional materials. No third-party testimonials, verbal, email or written, are permitted.

5.5 Re-packaging; Re-labeling.
Entrepreneurs must not re-label, alter, or re-package any LTS product.

5.6 Future Events.
Entrepreneurs are expressly forbidden from stating or implying that additional products or services will be added to the products and services currently offered, that enhancements to the Compensation Plan are forthcoming, or that specific areas are about to be added to current areas of operation unless or until the event has been announced by LTS. Making such statements or issuing such implied information is grounds for immediate termination.

5.7 Claims and Representations.
LTS does not, nor does it permit anyone to, make claims that its products treat, prevent, cure, or mitigate any medical condition or disease. The only claims that an Entrepreneur may make regarding LTS products, services, or the Compensation Plan are those stated in current Company-produced materials. No Entrepreneur may use third-party testimonials (i.e., other peoples' testimonials) unless such testimonials are included in current official LTS materials. No Entrepreneur may suggest or imply that additions or enhancements of products or services, or modifications to the Compensation Plan or zones of operation are forthcoming. Each Entrepreneur must instruct all users of Company products to read labels and to follow directions.

5.8 No Exclusive Territories.
There are no exclusive territories available for any LTS Entrepreneur to sell products or to sponsor other Entrepreneurs. No Entrepreneur may profess or imply that such exclusive territories exist or are available under any circumstances.

5.9 Inducements to Prospects.
Each Entrepreneur is responsible for building her/his organization with support in the form of training and supervisory assistance from his/her sponsor. Sponsors or Entrepreneurs may not promise to provide prospects or actually place new Entrepreneurs under a prospect, may not imply special favors or special treatment in any form, and may not claim a 'special relationship' with LTS or its management as an inducement to sponsorship.

5.10 Retail Outlets.
Individual service and personal attention, key components of direct selling success, are best delivered on a person-to-person basis. Therefore, LTS does not allow the display or sale of LTS products or promotional materials in any retail outlets other than personal service establishments (see below). Retail outlets include pharmacies, health food stores, and all stores where any type of products are sold, flea markets or swap meets, permanent shopping mall booths, restaurants, bars, nightclubs, or any similar establishments. An Entrepreneur may display and sell products in a non-permanent shopping mall booth only if that booth is used for this purpose no more than eight days per calendar month. Sales by Entrepreneurs who own retail establishments are not violations of this policy. LTS Entrepreneur information may be displayed within retail business sites, and LTS products may be displayed within private and restricted-access offices, businesses, or private associations. Such establishments are those locations where the general public does not have ready access, unless through appointment or membership, and/or where the primary function is the rendering of professional services.

5.11 Personal Service and Appointment-Only Business.
LTS products or promotional materials may be displayed and sold in establishments such as doctor's offices, spas, or salons provided it is done at a workstation or an area where services are normally performed. No LTS products or promotional materials may be displayed when an Entrepreneur is not present, nor may any be displayed or sold in general areas, which are accessible to passersby or walk-in traffic.

5.12 Fairs and Trade Shows.
LTS products may be displayed and sold at short-term fairs and trade shows provided that they are offered in an exclusive area and not together with products from other companies. Only currently-authorized promotional materials may be used in association with the promotion and sale of the products.

5.13 Public Meeting Signage.
At open or public meetings, only approved LTS signs may be used. Such sign materials are obtainable from LTS.

5.14 Non-Company Selling or Recruiting.
Entrepreneurs may not engage in selling or recruiting activities with non-LTS products or recruiting activities with Entrepreneurs whom they have not personally sponsored, unless they have the sponsor's permission. There are no such restrictions on personally-sponsored Entrepreneurs.

5.15 Prohibition on Cross-Sponsoring and Recruiting - Ownership of Downline Information.
The Entrepreneur has the exclusive right to collect commissions on its downline organization. However, the names, addresses, and other personal information of an Entrepreneur's downline Entrepreneurs is, and remains at all times, the sole and separate property of LTS with the exception of those persons personally sponsored by the Entrepreneur. An Entrepreneur may not use, or cause anyone to use, this information to recruit, solicit or otherwise induce any other Entrepreneur to, in any manner, join, participate, or enter into an agreement of any kind with any other network marketing company or direct sales company during the term of the Entrepreneur's engagement with LTS.

5.16 Barter Organizations Prohibited.
No Entrepreneur may promote LTS products or the Entrepreneur's LTS business through any type of barter organization.

5.17 Confidentiality and Nondisclosure.
On a periodic basis, LTS will supply data processing information and reports to Entrepreneurs concerning their downline organization. This is proprietary information and shall not be, either directly or indirectly, disclosed to a third party or used to compete with LTS. The Entrepreneur and LTS agree that, but for this agreement of confidentiality and nondisclosure, LTS would not provide this information. Should the Entrepreneur violate this understanding and agreement, LTS shall have the right to take any reasonable steps to prevent disclosure of this information and to recover reasonable damages for loss or expense involved in such breach and recovery proceedings.

5.18 Unlawful Practices.
No Entrepreneur may participate in any unlawful practice. Violation of this policy shall be sufficient grounds for immediate termination of the Entrepreneurship by LTS.

5.19 Regulatory Agencies.
LTS will make every effort to assure good relations with all regulatory bodies. However, no governmental body, whether an office of State Attorney General, Secretary of State, the Better Business Bureau, a state or federal trade commission, a consumer protection agency, or similar entity, approves or endorses any product or marketing program. No Entrepreneur may claim or imply approval, sanction, or endorsement by such bodies.

5.20 Violations by Entrepreneur – Procedure.
Violations of any law, regulation, ordinance, or statute that jeopardizes LTS's position with any regulatory authority will be dealt with immediately LTS is notified of such violation. When LTS verifies the existence of a violation, the following procedure may apply:

a. LTS will send to the offending Entrepreneur an official notice of intent to correct the violation or to cancel the Entrepreneurship.

b. The offending Entrepreneur will have ten (10) business days in which to present his/her case to LTS for review and adjudication.

c. LTS will then make a final decision as to the status of the Entrepreneur's relationship with LTS.

5.21 Entrepreneur Access to Company Website.
Entrepreneurs may use "replicating" website information and material which has been pre-approved by LTS. Such authorized information will be published generally to all Entrepreneurs. Entrepreneur websites must be registered with LTS's Compliance Department. Entrepreneurs are not authorized to use LTS's marks or information on advertising material that has not been reviewed by LTS. Entrepreneurs should submit all proposed advertising materials to LTS's Compliance Department in order to have such materials reviewed for possible infractions of the Entrepreneur Agreement and/or Policies and Procedures. Entrepreneurs are not authorized to use LTS's registered trademarks in the Entrepreneurship's business name, website, or email without the express written permission of LTS. Any unauthorized usage of LTS's marks or proprietary information may be cause for termination of the Entrepreneurship by LTS pursuant to the rules set out in the Agreement and the Policies and Procedures.

5.22 Sale of Non-Company Products.
While conducting LTS business, an Entrepreneur may not display, sell, or promote, either directly or indirectly, any products, services, or opportunities of any other companies. Additionally, only LTS products and/or authorized promotional materials may be sold or displayed at any LTS meeting, including but not limited to jewelry or items of apparel not directly produced and sold by LTS. Entrepreneurs may not sell or promote any competing products or services to LTS Entrepreneurs. This includes any product or service in the same generic category as LTS products. Entrepreneurs may not offer LTS products or promote the LTS Compensation Plan in conjunction with any other non-LTS product, plan, or incentive. Entrepreneurs may not offer any non-LTS products or opportunity in conjunction with the offering of LTS products or opportunities.

5.23 Combination of Information.
A Entrepreneur may not combine LTS product information provided by LTS with information provided by outside resources concerning LTS products or LTS product ingredients in any advertising, website, and/or presentation materials. Such prohibition is specifically intended to prevent medical claims, product claims, etc., for which information is not presented, prepared, or endorsed by LTS.

5.24 Company Right to Terminate Entrepreneurship and to Withhold Commissions.
LTS reserves the exclusive right to terminate and/or withhold payment of commissions to any Entrepreneur who violates any provision of the Entrepreneur Agreement, the Policies and Procedures (which includes the Code of Ethics), or any amendments thereto. Such termination cancels any and all rights under the Entrepreneur Agreement and compensation plans, and will be effective upon the verification by LTS of said violations and notification to the offending Entrepreneur. Upon cancellation, LTS shall be entitled to seek legal remedy for any damages to which it is entitled by law.

5.25 Entrepreneur Requirements on Termination.
Upon voluntary or involuntary termination, an Entrepreneur must immediately cease to represent himself/herself as an Entrepreneur of LTS. The downline of a terminated Entrepreneur inures to the Entrepreneur's sponsor/placement. An Entrepreneur who has been terminated by the Company is not eligible to reapply to be an Entrepreneur

6.Sponsoring and Placement and Compensation Plan Description
The following are rules related to enrolling others as Entrepreneurs and the maintenance of sponsorship lines.

6.1 Sponsoring Rights.
All currently-authorized Entrepreneurs may sponsor other Entrepreneurs in the LTS program. Occasionally, one or more persons may contact the same prospect, and a question may arise as to who has sponsoring rights for that prospect. LTS will not mediate such disputes and will recognize as the sponsor the individual whose name appears in the original Entrepreneur Application and Agreement first received and accepted by LTS.

6.2 Multiple Sponsoring Prohibited.
Sponsoring is the core of network marketing success. In order to support this vital function, an Entrepreneur may have only one sponsor. Transferring from one sponsor to another is prohibited. An Entrepreneur may not, in any form or capacity, participate or benefit in any way from more than one Entrepreneurship; if this should occur, those Entrepreneurships may be subject to termination.

6.3 Sponsoring Responsibilities.
All new LTS Entrepreneurs have the right to receive free training and support from their sponsors. The kind of training and support a new Entrepreneur receives will, in large part, determine their Entrepreneur's achievements. A successful sponsor should:

- Build relationships and demonstrate leadership through regular contact, guidance, and encouragement.

- Understand the goals and Entrepreneur's commitment and provide appropriate support.

- Not put pressure on any Entrepreneur to do anything they do not want to do or are not comfortable doing.

- Demonstrate proper personal and professional behavior to the downline and to retail customers and do nothing that shall reflect unfavorably on LTS, the downline, or the business.

- Train the team in the official LTS materials and the optimal approach to product and business presentations and assist them in hosting meetings.

- Accompany Entrepreneurs to LTS presentations and gatherings and encourage both new Entrepreneurs and their guests to wear appropriate business attire when attending presentations in order to further enhance LTS's professional public image.

- Help the Entrepreneur to understand and comply with the LTS Policies and Procedures, Compensation
Plan, and Retail Customer Money Back Guarantee.

- Demonstrate how to interact successfully with prospects and customers and provide direction to help resolve any questions or disputes promptly and amicably.

- Introduce new Entrepreneurs to their upline.

6.4 Sponsor Change.
An Entrepreneur may change sponsors by resigning from the LTS program, remaining outside the program for twelve (12) months, and then re-applying under a new sponsor. Using this method of resignation, the Entrepreneur would lose sponsorship over all previously-sponsored downline Entrepreneurs. In the case of resignation, the sponsored placements of the resigning Entrepreneur move up to the resigning Entrepreneur's sponsor position and the placement in the organization moves up to the resigning Entrepreneur's placement position.

6.5 livethesource Compensation Plan.
Sign Up to Become a livethesource Independent Entrepreneur for $30.00 plus S&H. This allows you to order product at wholesale and begin to earn retail profits and Compensation Plan commissions according to your achieved status. There are five basic methods to earn compensation in the livethesourceCompensation Plan:

1. Retail Profit
*Purchase products from livethesource at wholesale (20% discount); sell products to customers.
* Entrepreneur Autoship(Source Plan) receives a 25% discount.
* Entrepreneur's Customer places an order directly with livethesource . Entrepreneur receives 20% of the retail cost of the product, exclusive of S&H charges and taxes.
* Preferred Customer Autoship Program (see Autoship section below)

2. Uni-Level Commissions (see 6.11)

3. Generation Pay (see 6.12)

4. Ambassador Bonus Pools (see 6.13)
Earning Methods 2-4 are commissions paid to qualified Entrepreneurs who meet Personal Volume (PV) and Group Volume (GV) requirements. Commission is paid on the Bonus Volume (BV) of livethesource products purchased in your organization. Depth and amount of commission is based upon qualifying standards set forth in the livethesource Compensation Plan.

6.6 Autoship.
There are two types of Autoship categories for enrolling in the livethesource Autoship Program. New and existing Entrepreneur Autoship Plan (Source Plan) – When an Entrepreneur sets up an Autoship either at time of enrollment or at a later date, the Entrepreneur selects monthly Autoship order items and the day of the month the order is to be shipped and selects the payment method to be placed on file for charging. The order will be fulfilled on the day selected, beginning the following month. Autoship is not mandatory, however, an Entrepreneur needs to maintain a PV of 108 monthly to receive commissions. + Preferred Customer Program – A Preferred Customer is a customer who has signed up for customer autoship. They can sign up (online) to become a Preferred Customer and receive a 10% discount on their product order. The customer selects an order, a delivery date and receives their 10% discount on that order. Pricing Structure Entrepreneurs – livethesource Independent Entrepreneurs will pay wholesale prices for their products, and will pay shipping, handling and applicable sales tax. Preferred Customers – Preferred Customers will pay Suggested Retail less 10%. 20% of the Preferred Customer price of the product , exclusive of S&H fee and tax, is paid to the enrolling Entrepreneur as profit from the sale. Prospective Entrepreneurs and Preferred Customers may enroll on the livethesource website under the Enroll button. If the new Entrepreneur or Preferred Customer goes to the specific URL of an existing Entrepreneur, they will be linked automatically to that Entrepreneur. If they arrive at the Website without an existing Entrepreneur's URL address, they will be asked (after selecting Enroll) to enter the name or ID# of the Entrepreneur who invited them there. If they cannot supply this information, they will not be allowed into the system and will be advised to call Customer Care for further help in placing their order. livethesource will make all attempts to find correct sponsorship information. If it is found that the retail customer inquired by chance or through a web search, the customer will be allowed to purchase product and will then be assigned to (and contact information forwarded to) a selected Entrepreneur in good standing with the Company and who meets criteria determined by livethesource . Direct Customer Purchases – Retail customers will pay full Suggested Retail Price, applicable S&H fees and taxes. Retail customers will either purchase product from a livethesource Entrepreneur directly or order online on the Customer order form or phone in their order to the livethesource Entrepreneur Support number 800-520-9944.

6.7 Sponsor Placement Feature.
You may take a first line personally sponsored Entrepreneur and move them, their organization and the organization volume, anywhere within your organization you feel it's most needed. The newly sponsored Entrepreneur must be moved with the calendar month they join or they remain on your first level. Simply go to MY Organization/Change Personally Sponsored Placement and fill in the appropriate ID numbers. Another livethesource™ feature of People Helping People.

6.8 Personal Volume (PV).
Personal Volume is derived from a variety of methods, as follow: + Your Personal purchase volume as an Entrepreneur + Your Personal Autoship order volume + Your Preferred Customer volume + Your Customer volume

6.9 Commission Payment.
Uni-Level and Generation Pay Commissions - Commissions are paid to Entrepreneurs during the month following the month in which sales are made in an Entrepreneur's downline organization. Organizational commission will be sent on or before the 15th of the month in which payments are to be made. Source Ambassador Bonus Pool - Bonus commissions will be paid as Uni-Level/Generation Pay Commissions during the month following that in which sales are made in a qualifying Entrepreneur's downline organization. Retail Profit Commissions - Retail commissions on Direct Customers and Preferred Customers will be processed monthly.

6.10 Deadlines.
Uni-Level Commissions and Generation Commissions - To be considered for payment of these commissions, orders must be received no later than 11:59 pm West Coast Time on the last calendar day of the month. Phone orders can be placed twenty four hours a day, 7 days a week. Fax and Online orders may be placed up until 11:59 pm West Coast Time on the last calendar day of the month. A new application with an order must be received by above deadlines to be considered for the current month (NO EXCEPTIONS). Retail Profit Commissions - Retail Profit Commissions follow the Uni-Level/Generation Commission deadlines.

6.11 Uni-Level Commissions.
Uni-Level commissions are paid on a monthly basis and Dynamic Compression is applied. There are 4 levels of Uni-Level Commissions:

Entrepreneur:
+ An Entrepreneur who has a monthly 108 PV.
+ An Entrepreneur has 100 GV in any given month
+ An Entrepreneur is paid on two (2) levels of volume (Exhibit A)

Executive:
+ An Entrepreneur who has a monthly 108 PV
+ An Executive has 400 GV in any given month.
+ An Executive is paid on three (3) levels of volume.(Exhibit A)

Bronze:
An Entrepreneur who has:
+ A monthly 108 PV
+ 1,200 GV in any given month
+ Three (3) Qualified Executive legs
+ Bronze is paid on four (4) levels of volume (Exhibit A)

Silver:
An Entrepreneur who has:
+ A monthly 108 PV
+ Three (3) Qualified Bronze legs
+ 5,000 GV in any given month
+ A Silver is paid on four (4) levels of uni-level volume (Exhibit A)

Gold:
An Entrepreneur who has:
+ A monthly 108 PV
+ Three (3) Qualified Silver legs
+ 20,000 GV in any given month
+ A Gold is paid on four (4) levels of uni-level volume. (Exhibit A)

Platinum:
An Entrepreneur who has:
+ A monthly 108 PV
+ Three (3) qualified Gold legs
+ 60,000 GV in any given month
+ A Platinum is paid on four (4) levels of uni-level volume (Exhibit A)

Diamond:
An Entrepreneur who has:
+ A monthly 108 PV
+ Three (3) qualified Platinum legs
+ 180,000 GV in any given month
+ A Diamond is paid on four (4) levels of uni-level volume (Exhibit A)

Ambassador :
An Entrepreneur who has:
+ A monthly 108 PV
+ Three (3) qualified Diamond legs
+ One of the Diamonds needs to be personally sponsored
+ 540,000 GV in any given month
+ A Diamond is paid on four (4) levels of uni-level volume (Exhibit A)

Exhibit A
The uni-level commission paid per qualified level to qualifying Entrepreneurs is as follows:

6.12 Generation Pay
Generation Pay allows you to earn commission from one rank to the next. For example, Silver Entrepreneurs earn Generation Pau on all Entrepreneurs between them and their next Silver. This applies to every leg you have. The percentages are recalculated with each additional leg you have. As you add width to your group by enrolling more Entrepreneurs you will earn more commissions down through as many levels as possible. The rewards are limitless.(See Exhibit B)

Exhibit B

6.13 Ambassador Bonus Pools.
1% of the U.S. Commissionable volume will be placed in the Ambassador Bonus Pool every month. The Pool is formulated and paid out on a pro-rata basis to leaders who meet the Diamond Bonus Pool qualifications as set forth below. The formula is as follows: The Ambassador Bonus Pool is calculated by taking 1% percent of the company commissionable volume BV and dividing it by the total number of Ambassador shares. An Ambassador earns one share for qualifying as an Ambassador and one additional share for every Ambassador leg in their organization. An Ambassador leg is any leg that has a qualified Ambassador in it during the current month.

6.14 Retail Profits/Commissions.
A livethesource Entrepreneur is able to earn retail profits/commissions in three distinct ways: An Entrepreneur may purchase product at wholesale (20% discount) or (25% Autoship Discount (Source Plan) and sell to the Entrepreneur's customers at suggested retail price, thereby generating profit. An Entrepreneur may also direct a customer to order from the livethesource Retail order line or go to the Entrepreneur's website and order online. livethesource will pay the Entrepreneur 20% of the retail product cost. An Entrepreneur may sign up a customer on the Preferred Customer Autoship Program. There is free enrollment and the customer will receive a 10% discount off of full suggested retail. livethesource will pay the Entrepreneur the retail profit (less 10% discount). The volume generated from these sales is considered Business Volume (BV)

6.15 Dynamic Compression (Commission Rollup).
livethesource uses Dynamic Compression to create a lucrative and fair Compensation Plan for all Entrepreneurs. It is designed so that there is no breakage in the compensation plan and that all percentages in the Uni-Level Commission structure are paid out. In the instance where an Entrepreneur, upline from a sale, does not qualify for Payout under the Compensation Plan, the amount would then be paid to a qualified upline Entrepreneur. Entrepreneurs in good standing are eligible to receive commissions under the Compensation Plan. To be in good standing, an Entrepreneur must have a positive credit rating with livethesource and must have no outstanding debts or obligations to the Company. Suspended and/or terminated Entrepreneurships or Entrepreneurs with or without outstanding Non-Sufficient Funds (NSF) status are not in good standing. livethesource will pay Entrepreneur commissions on orders received in the Corporate Office by the published deadlines and which have been fully paid with an acceptable payment. If an Entrepreneur believes that there is an error in the calculation of commissions or program qualification, such questions must be brought to the attention of Entrepreneur Services via phone or email. If such problems are not brought to the attention of Entrepreneur Services within 60 days from the date of the commission check, the Entrepreneur waives all recourse with respect to the alleged error. livethesource retains the right to offset any monies owed in arrears by the Entrepreneur against monies earned as a result of any Commissions. The company further reserves the right to withhold payment of any commissions or fees to Entrepreneur where the Entrepreneur has violated the Entrepreneur Agreement and/or livethesource 's published Policies and Procedures.


6.16 Glossary of Terms.

livethesource will reference many terms or words that are unique to our industry. Please take the time to familiarize yourself with the following terms for a clearer understanding and better communication!

7. Compensation and Fee Requirements

7.1 Eligibility.
To be eligible for any compensation, an Entrepreneur must have achieved the monthly requirements in effect as detailed in LTS's then-current Compensation Plan. All commissions and bonuses will be paid in US Dollars.

7.2 Inactive Entrepreneurs.
An Entrepreneur with the rank/title of Executive, or above, who does not order a minimum of 108 PV in a calendar month will be considered inactive for that month and, therefore, ineligible for any commissions. If there is a requirement for a specific rank/title Entrepreneur to order a minimum Group Volume in a calendar month and the Entrepreneur does not achieve this, the Entrepreneur will be paid at the lower rank/title based on volume requirements. If an Entrepreneur remains inactive for six (6) consecutive months and has no downline, that Entrepreneur is no longer eligible for commissions and will become a Preferred Customer for the person who sponsored them. The Entrepreneur's Personally-Sponsored Entrepreneurs (if any) will permanently roll up to the next qualified and active Entrepreneur. In the 6th month, LTS will send to the Entrepreneur and their sponsor an automatically-generated notification via email/letter.

7.3 Annual Renewal Fee.
LTS assesses a yearly Account Renewal Fee of US$25 per Entrepreneur. This fee will be billed to the Entrepreneur's account on the anniversary of the Entrepreneur's acceptance by LTS, and is non-refundable.

7.4 Outstanding Collections.
Timely payment of all monies owed is required for an Entrepreneur to remain in good standing. LTS reserves the right to deduct any outstanding debt or arrears owed by any Entrepreneur to LTS from commissions earned. LTS further reserves the right to withhold payment of any commissions or fees to an Entrepreneur where the Entrepreneur has violated the Entrepreneur Agreement and/or these Policies and Procedures. If an Entrepreneur does not have sufficient commissions to cover an overdue debt and ignores his/her financial responsibilities, LTS will take any corrective action available including, but not limited to, withholding of monies earned and suspension of ordering privileges.

7.5 Commission Issues.
Any questions concerning commission calculations or checks must be raised with LTS's Entrepreneur Support within two (2) calendar months from the date on the commission check for that period. For example, a question about June checks paid in July must be raised by the end of September.

7.6 Minimum Check Amount and Check Processing Fee.
LTS will accrue commission payments to Entrepreneurs until they total $10.00; this means that commission payments which do not exceed $10.00 – either for a single month, or as a result of an accumulation of commissions earned but not paid from prior months – will not be paid. An administrative processing fee of $5.00US will be assessed on each monthly commission payment. As a payment example, applying the administrative fee to the $10.00 minimum commissionable amount would result in a check being issued for $5.00.

8. Ordering Procedures

8.1 Ordering.
Use only Company-approved order forms. Current forms and price listings are always available as sales aids through LTS, or on LTS's website (www.livethesource.com). Personalized order forms are not accepted.

8.2 Shipping Options and Carriers.
Shipping Options and Carriers Orders are shipped via Federal Express Ground – shipment typically delivered within five business days from order date. Orders within the contiguous 48 states will be shipped via selected carriers of LTS's. LTS currently ships via Federal Express. LTS will attempt to ship orders on the day of receipt. All orders shipped DO NOT require a signature for delivery. By agreeing to the policies and procedures all retail customers and/or Entrepreneurs acknowledge and accept the terms and conditions of no signature required.

8.3 Submitting Orders.
There are six ways to submit orders to LTS:

a. Entrepreneur Back Office via website: www.livethesource.com

b. Email: customerservice@livethesource.com

c. Telephone: 1-800-520-9944 9am to 6pm Monday through Friday

d. Fax.: 1-888-830-1496

e. U.S. Mail: livethesource 110 East Broward Blvd. Suite 1700 Ft. Lauderdale, Florida 33301

f. Federal Express, UPS, or overnight deliveries: livethesource Order Department 450 E. Las Olas Blvd, #830 Ft. Lauderdale, Florida 33301

8.4 Single Form of Payment.
One form of payment, in the exact amount and in a form acceptable to LTS, must accompany each order. Entrepreneurs may place orders only under their own Entrepreneur ID, and may not combine orders. A retail customer's product order may not be placed or paid for by an Entrepreneur.

8.5 Order Processing.

1. Orders will not be processed if not completed properly or not accompanied by valid payment.

2. Orders received with underpayments will not be processed.

3. Orders will be shipped and credited to the commission period in effect when payment is received and processed. This includes:

- Replacement funds for non-payment transactions.

- Credit card approval.

4. Only one shipping address per order is permitted. Unless otherwise specified, LTS will ship orders to the ordering Entrepreneur's address.

5. Each new Entrepreneur and retail customer must have a different address from that of their upline sponsors, except if a new Entrepreneur is a member of the sponsor's household.

6. If a transaction request cannot be processed, LTS will take appropriate measures to attempt to notify the Entrepreneur OR Customer by telephone, mail, fax, or email.

8.6 Telephone Orders.
Telephone orders must be accompanied by a guaranteed form of payment (e.g., credit or debit card). After taking the order, LTS order entry personnel will confirm the order details for approval. Once the call is completed, the order is transferred for shipping and may not be changed.

8.7 Payment Methods.
LTS prefers that all Entrepreneur transactions be conducted using electronic means. However, the following forms of payment are acceptable, providing that they are conducted without undue delays or interruptions to receipt of funds. In such instances, LTS may insist that only an electronic method of payment is used. COD orders are not acceptable under any circumstances. Checks. All forms of check transactions are on a 'good funds' basis (i.e., when a check is presented to LTS, it must be immediately paid.) The following guidelines apply to personal checks:

a. Use for mail-in orders of Entrepreneur's personal purchases only.

b. Use only Entrepreneur's own check imprinted with Entrepreneur's name and street address.

c. The name printed on the check must match the name on Entrepreneurship's LTS records.

d. The check's signature must match Entrepreneur's name as printed on the check.

e. Two non-payment transactions will result in suspension or cancellation of check-writing privileges.

f. The amount of any non-payment transaction, plus applicable check-processing fees, may be deducted from commissions. Check Returns. A US $25 check-processing fee (subject to change by LTS) will be charged for all checks returned to LTS for non-sufficient funds, stop payments, and closed accounts. Two returned transactions will result in the suspension or cancellation of check-writing privileges. Credit Cards • LTS accepts only valid and current American Express, Visa®, Discover and MasterCard® debit and credit cards,

b. The person ordering must be the owner or authorized signatory (recognized by the bank) of the credit or debit card.

c. LTS must have a current billing address on file for each credit card account used for payment. The billing address must be within those zones of operation designated by LTS.

d. Payment will be verified with the Credit Card company prior to processing of orders and Monthly Autoship orders. In the event that authorization is declined, LTS's Order Department may attempt to contact the Entrepreneur and may attempt re-authorization. If authorization is not received, the order will be considered to be 'unprocessed', and will not be included in commission computation and processing.

8.8 Backorders.
LTS makes every effort to have products/sales aids in stock. If these are not available or are temporarily out of stock, you will receive a 'backorder notice' with your shipment. Backorders are filled first when new inventory arrives. Purchase volume on backorders is credited to the month in which payment for the original order is processed.

8.9 Refunds and Inventory Returns.
LTS will accept inventory returns only in the case of an Entrepreneur's voluntary termination, and only when those inventory items have been purchased directly from LTS (as determined by the Entrepreneur's purchase history). The items to be returned must be in original condition and within the recommended expiration date. The Inventory returns procedure:

a. Prior to returning inventory, obtain a Return Merchandise Authorization Number (RMA) from Customer Service.

b. Ship the returned items, products or sales aids, freight prepaid to the LTS Home Office. Any returned items not received in new, unused condition will not be eligible for refund and will be returned to the Entrepreneur.

c. LTS will refund the cost of the items and applicable sales taxes and shipping/handling charges on the original purchase(s) in conformity to the following schedule: Purchase Period Refund Percentage 0 - 30 days 100%

d. Within 30 days of receipt of returned items and subject to the acceptability of the returned items, a check will be sent to the former Entrepreneur for the amount of refund due, less:

- Any commissions already paid on the returned items;

- The value of any promotional prizes won because of the original purchase.

8.10 Incorrect or Defective Items.
LTS will accept the return of incorrect or defective items only through the following procedure: Requests for an RMA must be in writing. Email customercare@livethesource.com or fax to 888.830.1496. LTS will accept returns of defective products from customers of Entrepreneurs at any time for replacement. b. LTS will issue a call order with the shipper to pick up defective items and will promptly replace them.

8.11 Returned Products - Account Adjustments.
Any Entrepreneur returning 'resalable' inventory will be refunded up to 100% of the net cost of the returned product, provided that the product is acceptable and that it is returned within the specified period. However, any compensation, bonuses, or commissions paid to you or upline Entrepreneurs on the returned product purchase volume will be debited from any upline beneficiaries' account. If you earned commission for the month in which the order was placed, the commission will be deducted from your refund.

8.12 Refund Procedure.
The following is the normal procedure expected in a product refund:

1. A request for refund must be made to the LTS Customer Service Department, together with verification of the original order(s) and receipt(s) or proof(s) of purchase.

2. The Entrepreneur should contact LTS's Customer Service Department to obtain a Returned Merchandise Authorization (RMA), which is assigned to the Entrepreneur's refund request. An RMA must be issued within 30 days following receipt of product and product must be shipped back within 30 days of order receipt.

3. The Entrepreneur must ship the product pre-paid to LTS in a protective container or carton, together with a brief explanation of the contents and a record of the RMA number supplied by Customer Service Department. The return address and RMA should be printed clearly on the outside of the package. Merchandise must be picked up for return within 7 days (verifiable) of receipt of RMA. Any and all shipping or courier costs for the return of product to LTS will be borne solely by the Entrepreneur. Any damage or loss that occurs to returned product during shipping is also the responsibility of the Entrepreneur. If the package is received damaged at LTS, LTS's Distribution Center will reject the shipment. Therefore, it is recommended that a reliable, traceable courier should be used for return shipping. When the above procedure is complete and the return process and returned product have been verified, a refund for up to 100% of the net product cost will be issued and sent to the Entrepreneur. It should be noted that local or state repurchase laws and requirements may cause variance to the above procedure.

8.13 Shipping Damage.
LTS products and sales aids leave LTS's Distribution Facility ready for use and resale. If a damaged shipment is received, a claim should be filed directly with the carrier, and take the following precautionary steps:

- Indicate on the delivery receipt the number of damaged boxes.

- Save the damaged boxes for inspection by the shipping agent.

- Contact LTS Entrepreneur Support for further instructions.

- If you discover damage not visible from the outside after you open the boxes, keep the shipment in the original package and report it immediately to the carrier's local office and request that a representative be sent to examine it. LTS will complete the claims process once it has been contacted by the carrier.

8.14 Receipt of Extra Product.
In the event of receipt of product surplus to the order, the Entrepreneur should contact LTS. LTS will offer the following alternatives:

- issue a call tag for carrier pick-up;

- allow the Entrepreneur to retain the product for additional payment. LTS will issue all necessary adjusting documentation.

8.15 Refund on Compensated Product.
If LTS provides a refund on product for which an Entrepreneur has received compensation, the Entrepreneur may be required, at LTS's sole discretion, to return any applicable compensation received.

8.16 Warranties.
LTS extends no product warranties, either express or implied, beyond those specifically set out in Company publications. LTS disclaims and excludes all warranties regarding possible infringement of any United States or foreign patent, trademark, trade name, copyright, or the like right, by the Entrepreneur's operations, and the Entrepreneur shall not have claim therewith. The Entrepreneur must notify LTS immediately as soon as he/she learns of any claim or suit relating to any of the matters discussed in this paragraph.

8.17 Cancellation Guarantee.
An Entrepreneur's cancellation of an Autoship order will only be accepted if made more than 48 hours prior to a scheduled Autoship shipment. Alternatively, an Entrepreneur wishing to cancel an Autoship order by returning the most recent Autoship delivery within 30 days of receipt with a signed cancellation notice using the procedures in 8.12 above. his guarantee applies only to the most recent order received by the Entrepreneur within 30 days. To receive this refund, customers or Entrepreneurs must contact the LTS Customer Service Department within thirty (30) days of purchasing their most recent Autoship order to request a Returned Merchandise Authorization (RMA) number, following the procedures outlined in 8.12, above. From this point, the merchandise must be returned to LTS within 7 days by a traceable carrier. Product must be in resalable condition, and must be accompanied by an RMA number and the signed cancellation notice.

8.18 Return Policy Expiry.
LTS will not accept product refund requests made after 30 days of Entrepreneur's receipt of any order. When an Entrepreneur has been in possession of an Autoship for more than 30 days without notification to terminate the Autoship, LTS has the right to assume that the account status is active, and will maintain the account as a regular Autoship account. Requests to refund retroactively multiple Autoship orders for multiple previous months will not be honored by LTS. Refusal by an Entrepreneur to accept shipment is not a method of account cancellation or change of account status.

8.19 The 70% Rule.
The LTS program is built upon retail sales of products and services to the ultimate consumer. Inventory loading is strongly prohibited. This prohibition includes the purchase of products and services for the sole purpose of qualifying for commissions or advancement within the Compensation Plan. Thus, when re-ordering inventory from LTS, an Entrepreneur is required to have sold at least 70% of all previous orders. The Entrepreneur is required to keep receipts of all retail sales activity. If requested by LTS, the Entrepreneur must furnish those receipts in order to verify that at least 70% of previous orders have been sold at any time during the Entrepreneur's operations.

8.20 Retail Direct Program.
Retail customers may purchase products directly from LTS through the LTS website or call Customer Care. The customer will be assigned a LTS Entrepreneur. Entrepreneurs should assist the retail customer in completing their next order and should ensure that they include their name, email address, telephone number, and street address, plus a shipping address (if different from their street address), as well as the Entrepreneur's name and Entrepreneur ID number on the order form. The Entrepreneur may not use his/her own address as the shipping address for a retail customer order without prior approval of LTS. When processing a Customer Product Order or a Preferred Customer Autoship Monthly Order accompanied by payment in full, LTS will send the products directly to the customer and will credit the retail profits to the Entrepreneur. If requested by the customer, LTS will honor the Retail Customer Money Back Guarantee, refunding the customer directly and deducting the related retail profits and commission from the Entrepreneurs commissions. For commission purposes, Preferred Customers and Customers will remain linked to the Entrepreneur who initiates their first order or who was selected by LTS as their Entrepreneur, and may not be transferred within a downline organization without Company approval.

8.21 Shipping/Handling Charges.
The shipping and handling charges listed on the order form are subject to change. They must be included with order payment and may be subject to sales tax in some states. Orders shipped to Alaska, Hawaii, Puerto Rico, Guam, and the Virgin Islands are subject to additional shipping charges.

8.22 Product Exchanges.
There are no product exchanges. All product orders are final (except as permitted and described within the Return Policies). Therefore, the Entrepreneur should take special care when ordering.

8.23 Lost Shipments.
An Entrepreneur should report any suspected lost shipments, either partial or complete, to LTS within 7 days after the expected date of arrival. LTS will first check with the carrier regarding the status of the delivery before sending replacements.

9. Advertising, Copyrights, Trademarks & Protected Materials

9.1 Advertising.
An Entrepreneur may place ads in the business opportunity section of the classified ads and not in the employment section, and may not use the LTS name, trademarks, or logos on any classified advertisements, unless pre-approved in writing or supplied by LTS. Only Entrepreneurs at the Silver level may engage in other forms of advertising, and then only using – without change – LTS-approved materials.

9.2 Uniformity of Presentations and Materials.
LTS has carefully developed and produced scripts, slides, and printed, audio, and visual materials to ensure a consistent, accurate, and professional presentation of LTS, the Products, and the Compensation Plan. An Entrepreneur may use only these Company-produced materials to present his/her LTS business. An Entrepreneur must conduct all Business Opportunity Meetings and Company-produced trainings without altering or compromising the content, integrity, and/or intent of these programs. A Entrepreneur may not produce any similar materials without receiving prior approval from LTS.

9.3 Copyrighted Materials.
livethesource is the sole owner of all rights in the content of all Company-published or Company-produced materials and Company-sponsored training sessions, meetings, and presentations. To use, record, copy, or reproduce any portion of these materials is not permitted.

9.4 Names, Product Names, Trademarks, and Logos.
An Entrepreneur may not include the LTS name or any of its trademarks, trade names, product names, or logos in connection with or as part of the name of an Entrepreneurship, nor in any printed or promotional materials. An Entrepreneur's only authorized use of the LTS name is to provide identification as an Entrepreneur of LTS. This use and introduction must be done in such a way as to establish immediate recognition of the Entrepreneur's status as an Independent Entrepreneur of LTS. With the exception of business cards and stationery, an Entrepreneur may not make, manufacture, or obtain from any source (other than LTS) promotional items or literature of any kind upon which LTS's name, logo, product names, trademark, or copyright is imprinted. This restriction includes all promotional gift items of any kind or other items that an Entrepreneur may want to give to customers or prospects.

9.5 Telephone/Directory/Program Listings.
Directory listings can be a valuable method of attracting new customers. The following guidelines must be observed in any use of these media:

a. White or Yellow Pages telephone listings may contain only the following Entrepreneur information: livethesource Independent Entrepreneur; Name and Telephone Number; Address (optional); livethesource Web Portal address.

b. Toll-free directories often drop the words "Independent Entrepreneur" from their listings to conserve space. Therefore, an Entrepreneur may list only the Entrepreneur's name and number in toll-free directories, with no reference to livethesource .

c. When using the livethesource name in any directory or program listing, the Entrepreneur must also include the phrase "Independent Entrepreneur." The listing should not appear to be an official Company listing, nor should it result in any responses to inquiries for any Company office to be directed to the Entrepreneur. Should any such calls be received by an Entrepreneur, the calls must immediately be referred to the LTS Home Office.

d. An Entrepreneur may be listed in the Yellow Pages telephone directory under such categories as Nutrition or Wellness.

e. An Entrepreneur may not contract for a display-type ad in any directory or program.

f. When listing in a directory of local Chambers of Commerce, networking organizations, and community groups, LTS has an approved directory description of LTS and its products. The currently-approved description is listed on the LTS website in the Entrepreneur Service Menu under "On-Line Library." Exact wording must be used with no revisions. In the event that an Entrepreneurship is terminated for any reason, it is the responsibility of the Entrepreneur to cancel immediately any directory listing that refers to that Entrepreneur as a LTS Independent Entrepreneur.

9.6 Trademark Identifier.
The livethesource name has been trademarked. When using the name in advertising, the first instances of the use of the name "livethesource " and must be accompanied by the letter "(R)" to indicate the trademarked status. When modifying advertising copy, care should be taken to retain this identification with each first occurrence of the names.

9.7 Business Name.
The "livethesource " name is a trademark owned by LTS and no form of it may be used in any Entrepreneur's business name. Examples of unacceptable names are: "My livethesource " or "Al's livethesource ", etc. In the same way, the Entrepreneur must be clearly identified as an Independent Entrepreneur whenever using the name livethesource on any business account such as checking or credit accounts. An example of incorrect wording is "livethesource , Mary J. Smith, Entrepreneur." An approved format is "Mary J. Smith, Independent Entrepreneur of livethesource ."

9.8 Business Cards.
Business cards are available through a Company-designated printer who has the exclusive authorization to reproduce the livethesource logo. They may be ordered online directly from the corporate-recommended vendor, name and address of which is available on line or by calling Customer Service.

9.9 Confidentiality of Company Information.
All information assembled by LTS with reference to downlines, genealogy, and placement of Entrepreneurs is the property of LTS, and is confidential and proprietary. An Entrepreneur has and maintains no rights or ownership in this information and/or data. If available to an Entrepreneur, the Entrepreneur must treat this information as confidential and proprietary to LTS at all times, and as only to be used in Company business. Improper or unauthorized use of this information may be sufficient cause for termination and/or any other legal remedy available to LTS.

9.10 Pre-Recorded Telephone Solicitations.
Neither LTS name nor any copyrighted materials may be used with automatic calling devices or 'boiler room' operations to solicit either Entrepreneurs or retail customers.

9.11 The Internet and the Entrepreneur's Personal Website.
All guidelines set out in these Policies and Procedures also govern websites.

1. The Entrepreneur's personal website:

- must have its own URL address. (An Entrepreneur may not market his/her Entrepreneurship and/or LTS products through any web page other than the Entrepreneur's own website - for example: virtual malls or auction sites such as E-Bay.)

– may not give the impression that it is an 'official' website of LTS.

- may not include personal photos that identify an Entrepreneur's affiliation with LTS.

2. An Entrepreneur may not use the livethesource name, trade names, trademark, logo, product names, copyrighted materials or make unauthorized claims or make references of any type to the name of any corporate executives, officers, employees, service providers, endorsement personalities, or the name of any group or individual who is associated with LTS in any of the following ways:

- as part of the Entrepreneur's URL address or domain name.

- as a search engine term, word, or other link to the Entrepreneur's website.

- as part of the text which is intentionally drafted to create a search term on any page of the Entrepreneur's website as part of any ad (see 9.13). - in any newsgroup posting or bulletin board.

3. The Entrepreneur must be scrupulous in following all Internet etiquette:

- respect other users' privacy.

- take all reasonable steps to ensure Internet security.

- use only 'bcc' or blind address entries when sending broadcast e-mails to the Entrepreneur's organization to prevent any unauthorized use of a name list (the Entrepreneur should check with the Internet provider to learn how to use blind addresses on lists).

- do not use mass e-mailings or 'spam' to promote the business.

4. The Entrepreneur may accept and process orders for products and services only from persons residing within Company-designated zones of operation.


9.12 Print, Radio, Television/Cable, and Internet Advertising.
No radio or television/cable advertising is permitted in any format whatsoever. Blind ads are permitted in print and on the Internet (see 9.13). "livethesource disclaims any and all liability arising out of or related in any way to Entrepreneurs independent website. Independent Entrepreneurs will be held responsible for any statements or other content that is posted on Independent Entrepreneurs websites or email, including liability for harm caused by such statements or material. Metatags, imbedded text or graphics or other techniques that utilize the trademarks, company names, product names or intellectual property of any non-LTS products in order to divert traffic to an Entrepreneur website are prohibited. Likewise, Entrepreneurs shall not use such metatags, imbedded text or graphics that contain names of illnesses or diseases, names of drugs, or improper medical or income claims to drive traffic to their respective websites. Within 48 hours of an Entrepreneur termination or cancellation of his/her LTS business for any reason, the former Entrepreneur shall remove his/her independent website from the internet. With the exception of livethesource personalized home pages, the use of livethesource within a URL address/domain name or email address or any derivative thereof, is not permitted (by way of example, but not limitation: livethesource beverage, sourcedrink, sourcehealth are impermissible URL's and email addresses.) livethesource independent Entrepreneurs may not use any domain name or email address that includes any reference, whether abbreviated or not, to the livethesource name, product or services except in connection with the personalized livethesource Replica Website Program. When using any name of a livethesource registered trademark of the livethesource company, the following designation must be made: "________________" is a registered trademark belonging to the livethesource company. It is the responsibility of each Entrepreneur to ensure that their independent websites adhere to all applicable privacy laws and regulations. Independent websites must clearly and conspicuously post an accurate and legally compliant privacy policy on the website and must strictly adhere to that policy. livethesource 's approval of an independent Entrepreneur website is not an endorsement of the validity of the company's privacy policy. Entrepreneurs bear the sole and exclusive liability associated with their actions for violation of any laws or regulations relating to privacy requirements. Entrepreneurs owning or operating independent websites agree to indemnify and hold livethesource harmless for any damage, liability, fine, sanction, judgment, settlement, award or other financial injury incurred that results from or related to the Entrepreneurs independent website."

9.13 Blind Ads.
Blind ads are permitted in print and on the Internet with the following requirements:

- Do not use the livethesource name, trade names, product names, trademarks, logo, or copyrighted materials. (For Internet ads, see 9.11 and see 9.12, above)

- Do not make unauthorized claims or mention any medical conditions, diseases, or income representations.

- Do not reference the name of any corporate executives, officers, employees, service providers, endorsement personalities, product research council members, or the name of any group or individual who is associated with LTS.

- Printed flyers, tear sheets or spam emails are not authorized promotional material and are not permitted.
Blind print ads must include the Entrepreneur's name. For example, a print ad could end with the statement, "for details, call Mary Smith at 1-714-555-1212," but not with the statement, "for details call Mary Smith, Independent Entrepreneur of livethesource at 1-714-555-1212." If the livethesource name is mentioned, the ad is no longer blind. The only exception allowed is the inclusion of an Entrepreneur's livethesource website address.

9.14 Classified Advertisements.
Approved classified advertisements are available on the LTS website on the Entrepreneur Service Administrative Forms. If any of these advertisements are used, the exact wording must be used without any revisions.

9.15 Media Inquiries and Appearances.
If an Entrepreneur is contacted by the media - radio, television/cable, or print press - the contact must be referred to the LTS Home Office. To ensure a consistent public image, only authorized officials of LTS may speak to the media on behalf of LTS. As an independent contractor for livethesource , I authorize livethesource to use my name, picture and likeness and personal product and income testimonials in advertising and promotional materials and waive all claims for remuneration for such use. An Entrepreneur should not solicit media coverage or publicity or agree to media appearances to promote their LTS business or activities. If an Entrepreneur is contacted for such an appearance, he/she must obtain prior written approval from an authorized officer of LTS before agreeing to appear.

10. Conflict Resolution

All Entrepreneurs are responsible for seeing that the Policies and Procedures are followed. Problems should be handled at the lowest possible level.


10.1 Violations of Section 9 of the Policies and Procedures.
All violations of Section 9 of the Policies and Procedures (above) must be referred in writing directly to LTS.

10.2 Other Violations.
Entrepreneurs who identify violations of other sections of the Policies and Procedures should draw them directly to the attention of the violator. This should solve most problems, as most are caused by a lack of understanding.

10.3 Escalation.
If the above communication does not solve the problem, violators should be reported to their upline Diamond, together with written details such as dates, witnesses, etc.

10.4 Company Involvement.
If the problem is still not resolved, or if there are two disputing parties with different upline Diamonds, the problem should be referred to LTS in writing. Entrepreneurs have a duty to bring such disagreements to the attention of LTS before making any dispute public through the filing of any action seeking judicial and/or arbitration intervention. Upon notification, LTS may confer with anyone at any time concerning any alleged violation of the Agreements or the Policies and Procedures as may be necessary to conduct an investigation. Upon request by LTS to an Entrepreneur, all documents related directly to an alleged violation shall be delivered to LTS for examination. Upon completion of an investigation, LTS may notify the involved Entrepreneurs of a hearing on the issues relating to the alleged violation(s). Any information ascertained during an investigation or hearing shall be treated as confidential, except in cases where the accused member has been determined to have violated federal, state, or local statutes. If the involved Entrepreneurs are unable to resolve the dispute, the involved Entrepreneurs and LTS shall be submitted to binding arbitration, using the rules of the American Arbitration Association. Jurisdiction and venue shall be Broward County, Florida, in the judicial district where LTS is located. Each party having a concern shall first give notice of intent to submit to arbitration prior to filing for arbitration.

10.5 Penalties for Violators.
Entrepreneurs violating any of the Policies and Procedures (including the Code of Ethics) may be required to cancel advertising, to destroy unauthorized literature, to remove offending signs, to disconnect telephones with no referral, and any other remedy considered appropriate by LTS in its sole discretion. Entrepreneur authorization may be cancelled. Violators will be liable to LTS or any damages and costs, including attorneys' fees, resulting from violations.

10.6 Arbitration.
The Entrepreneur and LTS agree to submit any claim or controversy of whatever nature arising out of or relating to any relationship between the Entrepreneur and LTS to final and binding arbitration administered by LTS under its Comprehensive Arbitration Rules and Procedures. Judgment upon the award may be entered in any court having jurisdiction. The arbitrator shall be a retired or former judge of a United States District Court or the Superior Court of the State of Florida and shall be selected as follows: The parties shall attempt to agree on any qualified member of the LTS panel. If the parties are unable to agree on an arbitrator within thirty (30) days after service of the demand for arbitration, either party may request the LTS Arbitration Administrator to furnish a list of three qualified members from its panel; each side shall strike one name from the list, and the remaining person shall act as the arbitrator. Depositions may be taken and discovery may be obtained in any arbitration under this Agreement in accordance with Florida's Code of Civil Procedures or any amendment thereto. The dispute will be determined by the laws of the State of Florida. The arbitrator will have the authority to award any relief that would be available in a court of law. Each party will bear its own costs and fees in the arbitration, but LTS will pay the costs for the arbitrator. If the arbitrator finds that any claim filed by an Entrepreneur is either frivolous or maliciously filed, the arbitrator can shift fees.

11. Amending the Policies and Procedures


11.1 Company's Rights to Publish and Amend.
LTS reserves the right to amend these Policies and Procedures at any time, and will publish these Policies and Procedures so that the Entrepreneur may make examination. Entrepreneur is responsible to adhere to these Policies and Procedures and amendments upon their publication, in any form, by LTS. If an Entrepreneur disagrees with the Policies and Procedures, LTS recommends that that Entrepreneur should resign.

11.2 Amendments.
Amendments to the Policies and Procedures will be in effect and binding upon all LTS Entrepreneurs upon publication by LTS in any form generally available to all Entrepreneurs. Amendments will be available on LTS's website.

11.3 Force Majeure.
Neither LTS nor any of its Entrepreneurs shall be responsible for delays or failures in performance hereunder where performance is made commercially impracticable due to circumstances beyond the parties' reasonable control including, without limitation, strikes, labor difficulties, riot, war, fire, delay or curtailment of the parties' usual source of supply, or government decrees or orders.

11.4 Entire Understanding.
These Policies and Procedures, the LTS Entrepreneur Application and Agreement, and the instruments and documents referred to herein constitute the entire understanding of the parties with respect to the subject matter. The Entrepreneur Application and Agreement may be amended only by an instrument in writing signed by an authorized officer of livethesource . The Policies and Procedures will be subject to amendment at the will of LTS and will be published for availability to each Entrepreneur. Should any inconsistency arise, the terms and conditions of the Policies and Procedures and the Entrepreneur Agreement shall be controlling.

11.5 Company Waiver.
No failure of livethesource to exercise any power given to it under these Policies and Procedures or Entrepreneur Agreement, or to insist upon strict compliance by any Entrepreneur with any obligation or provision hereunder, and no custom or practice of the parties at variance with the terms hereunder, shall constitute a waiver of LTS's right to demand exact compliance with these Policies and Procedures and the Entrepreneur Agreement. Only an authorized officer of livethesource can effect a waiver by livethesource , and then only in writing.

12. Incentives and Awards Policies

From time to time, LTS may award incentive programs to selected or qualifying Entrepreneurs – possibly in the form of 'getaway trips'. These awards are based upon high Entrepreneur performance. LTS will only give an award to the individual(s) whose name(s) appear on the original Application Form. Because a major purpose of an award is to recognize performance and to allow a performing Entrepreneur to associate with other top Company performers, no award will be transferable. Trip substitutions will not be made. No payment or credit will be given to any Entrepreneur who does not accept an award for any reason. Trip qualifiers may not defer attendance toward future trips. Entrepreneurs' children may be allowed on trips, at the Entrepreneur's expense, with Company pre-approval.

Although LTS may pay the cost of each award or 'getaway trip', the Entrepreneur, as an independent contractor, agrees to indemnify and to hold harmless LTS from any claims related to injuries sustained by the Entrepreneur and/or the Entrepreneur's guests during any such award. The Entrepreneur may not make claim upon, or rely upon, insurance by LTS to cover the costs and expenses of any injuries to the Entrepreneur and/or the Entrepreneur/s guests. LTS is required by tax law to include the fair market value of any incentive awards, trips, etc., as earnings on the Entrepreneur's annual tax report (such as Form 1099 and/or other applicable forms). The Entrepreneur will be liable for applicable taxes on these earnings, and agrees to hold LTS harmless from any claims of tax liability relating to any incentive program or award. If it is discovered that an Entrepreneur has made any misrepresentation or has violated any of these Policies and Procedures in becoming eligible for any award or incentive, LTS reserves the right to charge back to the Entrepreneur any or all of the costs incurred by LTS relating to such award or incentive.

livethesource^®
110 East Broward Blvd. Suite 1700
Ft. Lauderdale, Florida 33301