PH Simple Steps to Success

Statement of Policies Capitalized terms used in the Statement of Policies have the meanings set forth in the Definition of Terms. 1. Becoming a Member To become a Member, a person must (a) sign and submit a Customer Membership Agreement as a Member, (b) place an order for at least ₱2,900, and (c) pay an annual membership fee. Members receive a number of additional benefits and may purchase products directly from Melaleuca at 30% to 50% below the non-Member price. In return for this added discount, Members agree to purchase Melaleuca products totaling at least ₱2,900 each month. Customers are not authorized to market or resell Melaleuca products. 2. Becoming a Marketing Executive To apply to become a Marketing Executive, a person must first (a) have an Enroller who has submitted an Independent Marketing Executive Agreement; and (b) sign and submit an Independent Marketing Executive Agreement. Once those steps are completed, the applicant is authorized to introduce Melaleuca products and business opportunity and to enroll Customers and prospective Marketing Executives. However, an applicant does not become a Marketing Executive until: (i) Melaleuca receives and accepts the applicant’s Independent Marketing Executive Agreement; (ii) the applicant has a Personal Enrollee who is an Active Customer; and (iii) the applicant receives his/her first commission. Marketing Executives may purchase products directly from Melaleuca as a Regular Customer (Non-Member). If a Marketing Executive at any point no longer has any Customers in his/her Marketing Organization, that Marketing Executive ceases to be a Marketing Executive and must requalify to become a Marketing Executive under the conditions mentioned above. Marketing Executives may be but are not required to be Members or Customers.

3. Individuals and Corporations Melaleuca will only consider for acceptance as Marketing Executives individuals or entities that fall into one of the following categories: (a) Individuals who are of legal age. (b) Married couples of which at least one is of legal age. (c) Corporations in good standing in the state, province, or country of their incorporation which have as their sole shareholder(s), director(s) and officer(s) either one unmarried individual or a married couple, which are established in accordance with Melaleuca guidelines. 4. Customer Numbers Customers and Marketing Executives may not use or submit to Melaleuca any government issued identification number other than the actual number assigned to the Customer or Marketing Executive by the proper government authority. 5. Proper Completion of Documents All agreements must be completely and properly filled out and signed. No copies or alterations will be accepted. Melaleuca may require original signed versions of all agreements or request the re-execution of agreements upon reasonable notice. Agreements will only be accepted by Melaleuca in their original unaltered form, regardless of passage of time or payment of commissions by Melaleuca. Melaleuca will not be responsible for loss of commissions or bonuses or for delays in Customer or Marketing Executive registrations or orders due to: (a) errors by Customers or Marketing Executives in preparing or sending agreements, orders or other documents; (b) delays or errors caused by the mail or electronic transmission; (c) nonreceipt of documents by Melaleuca; (d) illegible or incomplete information on agreements, orders or other documents; or (e) the inability of Customers or Marketing Executives to reach Melaleuca by telephone during busy calling periods. Melaleuca will process and credit orders and enrollments in the calendar month in which they are received by Melaleuca. In addition, Philippines residents will need to supply a photocopy of the National Registration Identify Card, or Permanent Resident Identity Card or any legal documents verified by Melaleuca to confirm residential status.

6. Ordering All orders are credited to the calendar month in which they are received by Melaleuca. Orders may be placed by telephone, mail, the internet and in person at Melaleuca stores. All telephone and internet orders must be paid by Visa, MasterCard, or DebitCard. Orders by mail may be paid by Visa, MasterCard, DebitCard. When paying with a credit or debit card, the card number and expiration date must be included. Orders for products will usually be processed by Melaleuca within 48 hours of receipt. Shipment will be by common carrier and delivery should be expected within 5-10 days. Orders placed during the last week of the month may be delayed due to the large volume of orders received at the end of the month. 7. Customer Satisfaction Guarantee If for any reason any Customer is not completely satisfied with any product purchased by such Customer from Melaleuca, the Customer may return the unused portion of the product together with a copy of the purchase receipt to Melaleuca within 90 days of the date of purchase and Melaleuca will (1) credit the Customer’s account for the total purchase price of the product (less shipping and handling charges), or (2) upon the Customer’s written request, replace the product without charge, or (3) upon the Customer’s written request, refund the total purchase price of the product (less shipping and handling charges). Refunds, when requested, will be issued to the original method of payment used to purchase the product unless that method of payment is unavailable in which case a refund check will be issued to the Customer. Unless the Customer requests otherwise, Melaleuca will credit the Customer’s Melaleuca account for the purchase price of the returned product (less shipping and handling charges). Credit on account is available for Melaleuca product purchases. Melaleuca reserves the right to terminate the Independent Marketing Executive Agreement or cancel the Customer Membership Agreement of any Marketing Executive or Customer who abuses the Melaleuca Satisfaction

8. Returns and Product Point Adjustments on Value Pack Returns Individual products that are purchased as part of a Value Packs or other “special” packs which are priced below the Member price, can be returned for an exchange but not for a refund unless the entire pack is returned. Marketing Executives receive commissions based on actual sales by Melaleuca of product to End Consumers. When product is returned to Melaleuca, the commissions attributable to that product will be deducted from the commissions of the Customer’s Support Team in the month the return occurs. If the return occurs within 6 months of the purchase date, then commissions will be deducted from the commissions of the: (a) Customer’s Support Team in the month the return occurs; and (b) Support Team of the Marketing Organization that existed at the time of the purchase. Otherwise, commissions will be deducted from the commissions of the Support Team of the current Marketing Organization. Melaleuca reserves the right to terminate the Independent Marketing Executive Agreement or cancel the Customer Membership Agreement of any Marketing Executive or Customer who abuses the Melaleuca Satisfaction Guarantee and return policy by excessively returning products. 9. Marketing Executives Are Not Corporate Representatives Marketing Executives are not corporate representatives of Melaleuca and are not authorized to incur any debt, expense or obligation on behalf of or for Melaleuca, nor bind Melaleuca to any agreement or contract. 10. Election to Cancel Agreements A Marketing Executive may suspend/ cancel his/her Independent Marketing Executive Agreement, and a Customer may suspend/cancel his/her Customer Membership Agreement, for any reason at any time by sending a completed Melaleuca Suspend My Member Benefits Form to Melaleuca bearing his/her original signature, printed name, address, Customer Number and reason for cancelling (to assist Melaleuca in improving its customer service). A Melaleuca suspension form will help insure the accurate information necessary to process the cancellation is submitted. If an individual or entity is a Customer and a Marketing Executive, the notice should specify which agreement(s) should be suspended.

Suspensions received by Melaleuca on or before the 25th of the month will be effective the month received. Written suspensions received by Melaleuca after the 25th of the month will be effective the following month. Suspension notices must be mailed to: Melaleuca of the Philippines, Inc. 4th Floor KDC Plaza 2212 Don Chino Roces Ave. Pio del Pilar, Makati City 1230, Metro Manila Philippines You may print and submit the aforementioned form as a valid document of membership suspension. 11. Cancellation Refund Policy There is no investment in product necessary to be a Marketing Executive. There is no requirement to purchase any product or service. No purchase is required to qualify for a bonus or commission. However, to the degree that any Customer is also a Marketing Executive and that Customer desires to return any product to Melaleuca for any reason, Melaleuca will repurchase all unencumbered products which are in resalable condition which were purchased by the Marketing Executive from Melaleuca within the previous 12 months, at one-hundred percent (100%) of the original cost to the Marketing Executive. All products or materials must be returned to Melaleuca with shipping prepaid by the Marketing Executive or Customer in order to receive the above refund. Melaleuca may charge back all commissions, bonuses and rebates paid by Melaleuca relating to any Customers returning product. 12. Resale of Products Melaleuca products are sold only by Melaleuca directly to End Consumers. In order to ensure the safety, freshness,

proceeding regarding this Policy 12 shall be entitled to an award of attorneys’ fees and costs. 13. Errors or Questions Marketing Executives should notify Melaleuca immediately of any errors or questions about commissions, bonuses, Monthly Business Reports, orders or charges. Melaleuca will correct any errors reported to it within 60 days, but Melaleuca will not be responsible for any errors, omissions or problems not reported within 60 days. 14. Joint Ownership of a Business An Independent Melaleuca Business may only be owned by an individual, a married couple, or by corporations that comply with Melaleuca guidelines. If a married couple who jointly own an Independent Melaleuca Business divorce, they may apply to have the Independent Melaleuca Business transferred to one of them as the sole owner. The divorced couple must submit to Melaleuca a written request specifying to which person the Independent Melaleuca Business will be transferred. The request must be notarized and must either contain the signature of both parties or contain the signature of at least one party and include a certified copy of the decision of the court approving the legal separation or the annulment or nullity of the marriage and the property settlement that designates to which party the Independent Melaleuca Business should be transferred. Melaleuca shall not be obligated to transfer any Independent Melaleuca Business to any person who Melaleuca deems in its sole discretion is not qualified to operate and own such business. If the transfer is approved, the person to whom the Independent Melaleuca Business is being transferred must sign and submit to Melaleuca a new Independent Marketing Executive Agreement. 15. One Business per Person or Couple A Marketing Executive may not own, operate or have a financial interest in more than one Independent Melaleuca Business without Melaleuca’s express written approval. With regard to Marketing Executives who are married couples and non-married cohabiting couples, or who jointly own an approved business as a corporate entity pursuant to Policy 3, both persons will be treated as a single Marketing Executive for purposes of Melaleuca’s policies. Therefore, for example, if one

efficacy and quality of Melaleuca products, Marketing Executives

and Customers are strictly prohibited from directly or indirectly offering Melaleuca products for resale to anyone at any time. In particular, Marketing Executives and Customers may not offer Melaleuca products or materials for sale via the internet (including, but not limited to, Facebook, Lazada, Carousell, Shopee, etc.). This obligation continues indefinitely even after a Customer Membership Agreement or Independent Marketing Executive Agreement is no longer in force for any reason. The parties agree that all claims or disputes regarding this Policy 12 shall not be submitted to binding arbitration, and may be the subject of legal action, which may include an award of damages and/or injunctive relief. To the extent permitted by law, the prevailing party in any

Guarantee and return policy by excessively returning products.

34 WELCOME TO MELALEUCA

SIMPLE STEPS TO SUCCESS 35

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