F.L.O.W Industry LLC RETURN POLICY: In order forDistributors, Preferred Customers, and RetailCustomers to receive a refund, all products must bereturned within 30 days of purchase in resaleable,unopened,responsible for shipping costs. There will be a 10%restocking fee applied to all customer returns.Please forward all returns to F.L.O.W Industry :Returns 364 East Main Street Suite 135 Middletown, Delaware 19709“new” condition.
F.L.O.W Policies and Procedure
Read carefully and strictly follow the rules.
POLICIES AND PROCEDURESv1.01.0 INTRODUCTION1.1 Mutual Commitment StatementF.L.O.W Industry, LLC (“hereafter as “F.L.O.W Industry” and the “Company”) recognizes that inorder to develop a longterm and mutually rewarding relationship with its F.L.O.W BeautyAdvisors (“FBA” and “FBAs”) and Customers, F.L.O.W Industry and the FBAs mustacknowledge and respect the true nature of the relationship and support the Customers.A. In the spirit of mutual respect and understanding, F.L.O.W Industry is committed to:I. Provide prompt, professional and courteous service and communications to all of itsFBAs and Customers;II. Provide the highest level of quality products, at fair and reasonable prices;III. Exchange or refund the purchase price of any product, service or membership asprovided in our Return Policy:IV. Deliver orders promptly and accurately;V. Pay commissions accurately and on a timely basis;VI. Expedite orders or checks if an error or unreasonable delay occurs;VII. Roll out new products and programs with FBA input and planning;VIII. Implement changes in the Compensation Plan or Policies and Procedures that affect theFBA with input from the FBAs;IX. Support, protect and defend the integrity of the F.L.O.W Industry Business Opportunity;X. Offer FBAs an opportunity to grow with F.L.O.W Industry with such growth guided by theprinciples of Servant Leadership.B. In return, F.L.O.W Industry expects that its FBAs will:I. Conduct themselves in a professional, honest, and considerate manner;II. Present F.L.O.W Industry Corporate and product information in an accurate andprofessional manner;III. Present the Compensation Plan and Return Policy in a complete and accurate manner;IV. Not make exaggerated income claims;V. Make reasonable effort(s) to support and train FBAs and Customers in their downline;VI. Not engage in crossline recruiting, unhealthy competition or unethical businesspractices;VII. Provide positive guidance and training to FBAs and Customers in their downline whileexercising caution to avoid interference with other downlines. As such, a FBA is discouragedfrom providing crossline training to a FBA or Customer in a different organization without firstobtaining consent of the FBA’s or Customer’s upline leader;X. Support, protect, and defend the integrity of the F.L.O.W Industry Business Opportunity;XI. Accurately complete and submit the FBA Agreement and any requested supportingdocumentation in a timely manner.1.2 F.L.O.W Industry Policies and Compensation Plan Incorporated into the F.L.O.WBeauty Advisors AgreementA. Throughout these Policies, when the term “Agreement” is used, it collectively refers tothe F.L.O.W Industry Agreement, these Policies and Procedures, and the F.L.O.W IndustryCompensation Plan.B. It is the responsibility of the Sponsoring FBA to provide the most current version of thesePolicies and Procedures (available on the F.L.O.W Industry website) and the F.L.O.W IndustryCompensation Plan to each applicant prior to his, her and/or its execution of a FBA Agreement.1.3 Purpose of PoliciesA. F.L.O.W Industry is a direct sales company that markets products and services througha network of business owners. To clearly define the relationship that exists between FBAs andF.L.O.W Industry, and to explicitly set a standard for acceptable business conduct, F.L.O.WIndustry has established these Policies and Procedures.B. F.L.O.W Industry FBAs are required to comply with: (i) all of the Terms and Conditionsset forth in the FBA Agreement, which F.L.O.W Industry may amend from time to time in its solediscretion; (ii) all Federal, State, Provincial, Territorial, and/or local laws governing his, herand/or its F.L.O.W Industry business; and (iii) these Policies and Procedures.C. F.L.O.W Industry FBAs must review the information in these Policies and Procedurescarefully. Should a FBA have any questions regarding a policy or rule, the FBA is encouraged toseek an answer from their Sponsor or any other upline FBA. If further clarification is needed theFBA may contact F.L.O.W Industry Customer Service.1.4 Changes, Amendments, and ModificationsA. Because Federal, State, and local laws, as well as the business environment,periodically change, F.L.O.W Industry reserves the right to amend the Agreement and the pricesin its F.L.O.W Industry Product Price List in its sole and absolute discretion. Notification ofamendments shall appear in Official F.L.O.W Industry Materials. This provision does NOTapply to the arbitration clause found in Section 13, which can only be modified via mutualconsent.B. Any such amendment, change, or modification shall be effective immediately uponnotice by one of the following methods:I. Posting on the official F.L.O.W Industry website;II. Electronic mail (email); orIII. In writing through the F.L.O.W Industry newsletters or other F.L.O.W Industry communicationchannels.1.5 DelaysF.L.O.W Industry shall not be responsible for delays or failures in performance of its obligationswhen such failure is due to circumstances beyond its reasonable control. This includes, withoutlimitation, strikes, labor difficulties, transportation difficulties, riot, war, fire, and/or weather,curtailment of a source of supply, or government decrees or orders.1.6 Effective DateThese Policies and Procedures shall become effective as of October 1st, 2015, and, at suchtime, shall automatically supersede any prior Policies and Procedures (the “old Policies andProcedures”), and, on that date, the old Policies and Procedures shall cease to have any forceor effect.2.0 BASIC PRINCIPLES2.1 Becoming a F.L.O.W Industry FBAA. To become a FBA, an applicant must comply with the following requirements:I. Be of the age of majority (not a minor) in his or her state of residence;II. Reside or have a valid address in the United States, a U.S. territory, or Canada;III. Have a valid taxpayer identification number (i.e. Social Security Number, Federal Tax IDNumber, ITIN, etc.);IV. Submit a properly completed and signed FBA Agreement to F.L.O.W Industry;V. Not be a F.L.O.W Industry employee, the Spouse of a F.L.O.W Industry employee orrelated to an employee of F.L.O.W Industry and living in the same household as such F.L.O.WIndustry employee.2.2 New FBA RegistrationA. A potential new FBA may selfenroll on the Sponsor’s website. In such event, instead ofa physically signed FBA Agreement, F.L.O.W Industry will accept the Webenrollment and FBAAgreement by accepting the “electronic signature” stating the new FBA has accepted the Termsand Conditions of such FBA Agreement. Please note that such electronic signature constitutesa legally binding agreement between the FBA and F.L.O.W Industry.B. F.L.O.W Industry reserves the right to require signed paperwork for any account,regardless of origin.C. If requested the signed FBA Agreement must be received by F.L.O.W Industry within14days of enrollment.D. Signed documents, including, but not limited to, FBA personal agreements, are legallybinding contracts which must not be altered, tampered with or changed in any manner after theyhave been signed. False or misleading information, forged signatures or alterations to anydocument, including business registration forms, made after a document has been signed maylead to sanctions, up to and including involuntary termination of the FBA’s distributorship.2.3 Rights GrantedA. F.L.O.W Industry hereby grants to the FBA a nonexclusive right, based upon the Termsand Conditions contained in the FBA Agreement and these Policies and Procedures, to:I. Purchase F.L.O.W Industry products and services;II. Promote and sell F.L.O.W Industry products and services; andIII. Sponsor new FBAs and Customers in the United States and in countries where F.L.O.WIndustry may become established after the effective date of these Policies and Procedures.2.4 Identification NumbersA. Each FBA is required to provide his or her Social Security Number, or Federal TaxIdentification Number, if located in the United States or any of its territories, to F.L.O.W Industryon the FBA Agreement. F.L.O.W Industry reserves the right to withhold commission paymentsfrom any FBA who fails to provide such information or who provides false information.B. Upon enrollment, F.L.O.W Industry will provide a F.L.O.W Industry Identification Numberto the FBA. This number will be used to place orders, structure organizations, and trackcommissions and bonuses.2.5 Renewals and Expiration of the FBA Agreement.
If the FBA allows his or her FBA Agreement to expire due to nonpayment, the FBA willlose any and all rights to his, her or its downline organization unless the FBA reactivateswithin 60 days following the expiration of the Agreement.B. If the former FBA reactivates within the 60day time limit, the FBA will resume the rankand position held immediately prior to the expiration of the FBA Agreement. However, suchFBA’s paid as level will not be restored unless he, she and/or an entity qualifies at that payoutlevel in the new month. The FBA is not eligible to receive commissions for the time period thatthe FBA’s distributorship was expired.C. Any FBA who was terminated or whose Agreement has expired and lapsed after the60day grace period is not eligible to reapply for a F.L.O.W Industry business for 12 monthsfollowing the expiration of the FBA Agreement.D. The downline of the expired FBA will roll up to the immediate, active upline Sponsor.2.6 Business EntitiesA. A corporation, partnership, LLC, or trust (collectively referred to as a “Business Entity”)may apply to be a F.L.O.W Industry FBA. This FBA business and position will remain temporaryuntil the proper documents are submitted. The Business Entity must submit one of the followingdocuments: Certificate of Incorporation, Articles of Organization, Partnership Agreement orappropriate Trust documents. F.L.O.W Industry must receive these documents within 14 daysfrom the date the FBA Agreement was signed.B. A F.L.O.W Industry FBA may change their status under the same Sponsor from anindividual to a partnership, LLC, corporation, trust or from one type of business entity to another.2.7 Independent Business Relationship; Indemnification for ActionsA. The F.L.O.W Industry FBA is an independent contractor, and not a purchaser of afranchise or business opportunity. Therefore, each FBA’s success depends on his or herindependent efforts.B. The Agreement between F.L.O.W Industry and its FBAs does not create anemployer/employee relationship, agency, partnership, or joint venture between F.L.O.W Industryand the FBA.C. A F.L.O.W Industry FBA shall not be treated as an employee of F.L.O.W Industry for anypurposes, including, without limitation, for Federal, State, or Provincial tax purposes. All FBAsare responsible for paying local, State, Provincial, and Federal taxes due from all compensationearned as a FBA of F.L.O.W Industry. Any other compensation received by FBAs from F.L.O.WIndustry will be governed by applicable U.S. or Canadian tax laws (or the tax laws of any otherapplicable jurisdiction). The FBA has no express or implied authority to bind F.L.O.W Industry toany obligation or to make any commitments by or on behalf of F.L.O.W Industry. Each FBA,whether acting as management of a Business Entity or represented as an individual, shallestablish his or her own goals, hours, and methods of operation and sale, so long as he or shecomplies with the Terms of the FBA Agreement, these Policies and Procedures and applicableState, Federal and Provincial laws.D. The F.L.O.W Industry FBA is fully responsible for all of his or her verbal and writtencommunications made regarding F.L.O.W Industry products, services, and the CompensationPlan that are not expressly contained within official F.L.O.W Industry materials. FBAs shallindemnify and hold harmless F.L.O.W Industry, its directors, officers, employees, productsuppliers and agents from any and against all liability including judgments, civil penalties,refunds, attorney fees and court costs incurred by F.L.O.W Industry as a result of the FBA’sunauthorized representations or actions. This Provision shall survive the termination of theF.L.O.W Industry FBA Agreement.2.8 InsuranceA. Business Pursuits Coverage. F.L.O.W Industry encourages FBAs to arrange insurancecoverage for their business. A homeowner’s insurance policy does not cover business relatedinjuries, or the theft of, or damage to, inventory or business equipment. F.L.O.W Industry FBAsneed to contact their insurance agent to make certain their business property is protected. Inmost instances, this may be accomplished with a “Business Pursuit” endorsement to an existinghomeowner’s policy.2.9 Errors or QuestionsA. If a FBA has questions about, or believes any errors have been made regardingcommissions, bonuses, business reports, orders, or charges, the FBA must notify F.L.O.WIndustry in writing within 30 days of the date of the error or incident in question. Any such errors,omissions or problems not reported within 30 days shall be deemed waived by the FBA.3. F.L.O.W INDUSTRY’S FBA RESPONSIBILITIES3.1 Correct AddressesA. It is the responsibility of the FBA or Customer to make sure F.L.O.W Industry has thecorrect shipping address before any orders are shipped.B. A FBA or Customer will need to allow up to 30 days for processing after the notice ofaddress change has been received by F.L.O.W Industry.C. A FBA or Customer may be assessed a $20 fee for returned shipments due to anincorrect shipping address.3.2 Training and LeadershipA. Any F.L.O.W Industry FBA who Sponsors another FBA into F.L.O.W Industry mustperform an authentic assistance and training function to ensure his or her downline is properlyoperating his or her F.L.O.W Industry business. Sponsoring FBAs should have ongoing contactand communication with the FBAs in their downline organizations. Examples of communicationmay include, but are not limited to, newsletters, written correspondence, telephone, contact,team calls, voicemail, email, personal meetings, accompaniment of downline FBAs to F.L.O.WIndustry meetings, training sessions and any other related functions.B. A Sponsoring F.L.O.W Industry FBA should monitor the FBAs in his or her downlineorganizations to ensure that downline FBAs do not make improper product or business claims,or engage in any illegal or inappropriate conduct. Upon request, such FBA should be able toprovide documented evidence to F.L.O.W Industry of his or her ongoing fulfillment of theresponsibilities of a Sponsor.C. Upline FBAs are encouraged to motivate and train new FBAs about F.L.O.W Industry’sproducts and services, effective sales techniques, the F.L.O.W Industry Compensation Plan andcompliance with company Policies and Procedures.D. Marketing product is a required activity in F.L.O.W Industry and must be emphasized inall recruiting presentations.F. We emphasize and encourage all FBAs to sell F.L.O.W Industry’s products and servicesto Customers.G. Use of Sales Aids. To promote both the products and the opportunity F.L.O.W Industryoffers, FBAs must use the sales aids and support materials produced by F.L.O.W Industry. IfF.L.O.W Industry FBAs develop their own sales aids and promotional materials, which includeInternet advertising, notwithstanding FBAs’ good intentions, they may unintentionally violate anynumber of statutes or regulations affecting the F.L.O.W Industry business. These violations,although they may be relatively few in numbers, could jeopardize the F.L.O.W Industryopportunity for all FBAs. Accordingly, FBAs must submit all written sales aids, promotionalmaterials, advertisements, websites and other literature to the Company for Company’sapproval prior to use. Unless the FBA receives specific written approval to use the material, therequest shall be deemed denied. All FBAs shall safeguard and promote the good reputation ofF.L.O.W Industry and its products. The marketing and promotion of F.L.O.W Industry, theF.L.O.W Industry opportunity, the Compensation Plan, and F.L.O.W Industry products andservices shall be consistent with the public interest, and must avoid all discourteous, deceptive,misleading, unethical or immoral conduct or practices.3.3 Constructive Criticism; EthicsA. F.L.O.W Industry desires to provide its independent FBAs with the best products andservices and Compensation Plan in the industry. Accordingly, F.L.O.W Industry valuesconstructive criticism and encourages the submission of written comments addressed toF.L.O.W Industry Compliance Department.B. Negative and disparaging comments about F.L.O.W Industry, its products orCompensation Plan, by FBAs made to F.L.O.W Industry, in the Field or at F.L.O.W Industrymeetings or events, or disruptive behavior at F.L.O.W Industry meetings or events, serve nopurpose other than to dampen the enthusiasm of other F.L.O.W Industry FBAs. F.L.O.WIndustry FBAs must not belittle F.L.O.W Industry, other F.L.O.W Industry FBAs, F.L.O.WIndustry products or services, the Compensation Plan, or F.L.O.W Industry directors, officers, oremployees, product suppliers or agents. Such conduct represents a material breach of thesePolicies and Procedures and may be subject to sanctions as deemed appropriate by F.L.O.WIndustry.C. F.L.O.W Industry endorses the following code of ethics:I. A F.L.O.W Industry FBA must show fairness, tolerance, and respect to all peopleassociated with F.L.O.W Industry, regardless of race, gender, social class or religion, therebyfostering a “positive atmosphere” of teamwork, good morale and community spirit.II. A FBA shall strive to resolve business issues, including situations with upline anddownline FBAs, by emphasizing tact, sensitivity, good will and taking care not to createadditional problems.III. F.L.O.W Industry FBAs must be honest, responsible, professional and conductthemselves with integrity.IV. F.L.O.W Industry FBAs shall not make disparaging statements about F.L.O.W Industry,other FBAs, F.L.O.W Industry employees, product suppliers or agents, products, services, salesand marketing campaigns, or the Compensation Plan, or make statements that unreasonablyoffend, mislead or coerce others.D. F.L.O.W Industry may take appropriate action against a FBA if it determines, in its solediscretion, that a FBA’s conduct is detrimental, disruptive, or injurious to F.L.O.W Industry or toother FBAs.3.4 Reporting Policy ViolationA. A FBA who observes a policy violation by another FBA should submit a written andsigned letter (email will not be accepted) of the violation directly to the F.L.O.W IndustryCorporate office. The letter shall set forth the details of the incident as follows:I. The nature of the violation;II. Specific facts to support the allegations;III. Dates;IV. Number of occurrences;V. Persons involved; andVI. Supporting documentationB. Once the matter has been presented to F.L.O.W Industry, it will be researchedthoroughly by the Compliance Department and appropriate action will be taken if required.C. This section refers to the general reporting of Policy violations as observed by otherFBAs for the mutual effort to support, protect, and defend the integrity of the F.L.O.W Industrybusiness and opportunity. If a FBA has a grievance or complaint against another FBA whichdirectly relates to his or her F.L.O.W Industry business, the Procedures set forth in thesePolicies must be followed.3.5 SponsorshipA. The Sponsor is the person who introduces a FBA or Customer to F.L.O.W Industry,helps them complete their enrollment, and supports and trains those in their downline.B. F.L.O.W Industry recognizes the Sponsor as the name(s) shown on the first:I. Physically signed F.L.O.W Industry FBA Agreement on file; orII. Electronically signed FBA Agreement from a website or a F.L.O.W Industry FBAswebsite.C. A FBA Agreement that contains notations such as “by phone” or the signatures of otherindividuals (i.e. Sponsors, Spouses, relatives, or friends) is not valid and will not be accepted byF.L.O.W Industry.D. F.L.O.W Industry recognizes that each new prospect has the right to ultimately choosehis or her own Sponsor, but F.L.O.W Industry will not allow FBAs to engage in unethicalsponsoring activities.E. All active FBAs in good standing have the right to Sponsor and enroll others intoF.L.O.W Industry. While engaged in sponsoring activities, it is not uncommon to encountersituations when more than one FBA will approach the same prospect. It is the acceptedcourtesy that the new prospect will be sponsored by the first FBA who presented acomprehensive introduction to F.L.O.W Industry products or business opportunity.F. A Protected Prospect is a guest of any F.L.O.W Industry FBA or Customer who attendeda F.L.O.W Industry event or conference call. For 60 days following the event, a ProtectedProspect cannot be solicited or sponsored by any other F.L.O.W Industry FBA who attended thesame event. A F.L.O.W Industry event can be defined as the following:I. Any F.L.O.W Industry training session;II. Conference call;III. Flyin meeting; orIV. Presentation, including but not limited to a F.L.O.W Industry at home presentation,whether sponsored by F.L.O.W Industry, a FBA, a Customer, or an agent or agency designatedby F.L.O.W Industry.3.6 Cross Sponsoring ProhibitionA. “Cross sponsoring” is defined as the enrollment into a different line of sponsorship of anindividual, or Business Entity, that already has a signed FBA Agreement. Actual or attemptedcross sponsoring is not allowed. If cross sponsoring is verified by F.L.O.W Industry, sanctionsup to and including termination of a FBA’s distributorship may be imposed.B. The use of a Spouse’s or relative’s name, trade names, assumed names, DBA names,corporation, partnership, trust, Federal ID numbers, or fictitious ID numbers to evade orcircumvent this Policy is not permitted.C. This Policy does not prohibit the transfer of a F.L.O.W Industry business in accordancewith F.L.O.W Industry Sale or Transfer Policy set forth in these Policies.3.7 Adherence to the F.L.O.W Industry Compensation PlanA. A FBA must adhere to the Terms of the F.L.O.W Industry Compensation Plan as setforth in these Policies and Procedures as well as in official F.L.O.W Industry literature. Deviationfrom the Compensation Plan is prohibited.B. A FBA shall not offer the F.L.O.W Industry opportunity through, or in combination with,any other system, program, or method of marketing other than that specifically set forth inofficial F.L.O.W Industry literature.C. A FBA shall not require or encourage a current or prospective Customer or FBA toparticipate in F.L.O.W Industry in any manner that varies from the Compensation Plan as setforth in official F.L.O.W Industry literature.D. A FBA shall not require or encourage a current or prospective Customer or FBA to makea purchase from or payment to any individual or other entity as a condition to participating in theF.L.O.W Industry Compensation Plan, other than such purchases or payments required tonaturally build their business.3.8 Adherence to Laws and OrdinancesA. Many cities and counties have laws regulating certain homebased businesses. In mostcases, these ordinances do not apply to FBAs because of the nature of the business.However, FBAs must check their local laws and obey the laws that do apply to them.B. A F.L.O.W Industry FBA shall comply with all Federal, State, Provincial and local lawsand regulations in their conduct of his or her F.L.O.W Industry business.3.9 Compliance with Applicable Income Tax LawsA. F.L.O.W Industry will automatically provide a complete 1099 Miscellaneous Income Taxform (nonemployee compensation) to each US FBA whose earnings for the year is at least $600or who has purchased more than $5,000 of F.L.O.W Industry products for resale, or whoreceived trips, prizes or awards valued at $600 or more. If earnings and purchases are less thanstated above, IRS forms will be sent only at the request of the FBA, and a minimum charge of$20 may be assessed by F.L.O.W Industry. Canadian T4’s will be sent to FBAs who earn morethan $500 or who received trips, prizes, or awards valued at $500 or more. F.L.O.W IndustryFBAs are responsible for the payment of taxes on these trips, prizes, or awards provided tothem by F.L.O.W Industry.B. A FBA accepts sole responsibility for and agrees to pay all Federal, State, Provincial andlocal taxes on any income generated as an independent FBA, and further agrees to indemnifyF.L.O.W Industry from any failure to pay such tax amounts when due.C. If a FBA’s business is tax exempt, the Federal Tax Identification number must beprovided to F.L.O.W Industry in writing.
F.L.O.W Industry encourages all FBAs to consult with a tax advisor for additionalinformation for their business.3.10 One F.L.O.W Industry Business per FBAA. A FBA may operate or have an ownership interest, legal or equitable, as a soleproprietorship, partner, shareholder, trustee, or beneficiary, in only one (1) F.L.O.W Industrybusiness. No individual may have, operate or receive compensation from more than oneF.L.O.W Industry businesses. Individuals of the same family unit may each enter into or have aninterest in their own separate F.L.O.W Industry businesses, only if each subsequent familyposition is placed frontline to the first family member enrolled. A “family unit” is defined asSpouses and dependent children living at or doing business at the same address.3.11 Actions of Household Members or Affiliated PartiesIf any member of a FBA’s immediate household engages in any activity which, if performed bythe FBA, would violate any provision of the Agreement, such activity will be deemed a violationby the FBA and F.L.O.W Industry may take disciplinary action pursuant to these Policies andProcedures against the FBA. Similarly, if any individual associated in any way with acorporation, partnership, LLC, trust or other entity (collectively “Business Entity”) violates theAgreement, such action(s) will be deemed a violation by the Business Entity, and F.L.O.WIndustry may take disciplinary action against the Business Entity. Likewise, if a FBA enrolls inF.L.O.W Industry as a Business Entity, each Affiliated Party of the Business Entity shall bepersonally and individually bound to, and must comply with, the Terms and Conditions of theAgreement.3.12 Solicitation for Other Companies or ProductsA. A F.L.O.W Industry FBA may participate in other direct sales, multilevel, networkmarketing or relationship marketing business ventures or marketing opportunities. However,during the Term of this Agreement and for one (1) year thereafter, a F.L.O.W Industry FBA maynot recruit any F.L.O.W Industry FBA or Customer for any other direct sales or networkmarketing business, unless that FBA or Customer was personally sponsored by such FBA.B. The term “recruit” means actual or attempted solicitation, enrollment, encouragement, oreffort to influence in any other way (either directly or through a third party), another FBA orCustomer to enroll or participate in any direct sales or network marketing opportunity. Thisconduct represents recruiting even if the FBA’s actions are in response to an inquiry made byanother FBA or Customer.C. During the term of this Agreement and for a period of six (6) months thereafter, anyF.L.O.W Industry FBA must not sell, or entice others to sell, any competing products or services,including training materials, to F.L.O.W Industry Customers or FBAs. Any product or service inthe same category as a F.L.O.W Industry product or service is deemed to be competing (i.e.,any competing product or service regardless of differences in cost or quality. This provisiondoes not apply where professional services are the primary source of revenue and the productsales are secondary (e.g., doctor’s offices, clinics, health clubs, spas and beauty salons).D. However, a FBA may sell noncompeting products or services to F.L.O.W IndustryCustomers and FBAs that they personally sponsored.E. A FBA may not display or bundle F.L.O.W Industry products or services, in salesliterature, on a website or in sales meetings, with any other products or services to avoidconfusing or misleading a prospective Customer or FBA into believing there is a relationshipbetween the F.L.O.W Industry and nonF.L.O.W Industry products and services.F. A F.L.O.W Industry FBA may not offer any nonF.L.O.W Industry opportunity, productsor services at any F.L.O.W Industry related meeting, seminar or convention, or immediatelyfollowing a F.L.O.W Industry event.G. A violation of any of the provisions in this section shall constitute unreasonable andunwarranted contractual interference between F.L.O.W Industry and its FBAs and would inflictirreparable harm on F.L.O.W Industry. In such event, F.L.O.W Industry may, at its solediscretion, impose any sanction it deems necessary and appropriate against such FBA or suchFBA’s distributorships including termination, or seek immediate injunctive relief without thenecessity of posting a bond.3.13 Presentation of the F.L.O.W Industry OpportunityA. In presenting the F.L.O.W Industry opportunity to potential Customers and FBAs, a FBAis required to comply with the following provisions:I. A FBA shall not misquote or omit any significant material fact about the CompensationPlan.II. A FBA shall make it clear that the Compensation Plan is based upon sales of F.L.O.WIndustry products and services and upon the sponsoring of other FBAs.III. A FBA shall make it clear that success can be achieved only through substantialindependent efforts.IV. A F.L.O.W Industry FBA shall not make unauthorized income projections, claims, orguarantees while presenting or discussing the F.L.O.W Industry opportunity or CompensationPlan to prospective FBAs or Customers.V. A FBA may not make any claims regarding products or services of any products offeredby F.L.O.W Industry, except those contained in official F.L.O.W Industry literature.VI. A FBA may not use official F.L.O.W Industry material to promote the F.L.O.W Industrybusiness opportunity in any country where F.L.O.W Industry has not established a “presence.”VII. In an effort to conduct best business practices, F.L.O.W Industry has developed theIncome Disclosure Statement (“IDS”). The F.L.O.W Industry IDS is designed to convey truthful,timely, and comprehensive information regarding the income that F.L.O.W Industry FBAs earn.In order to accomplish this objective, a copy of the IDS must be presented to all prospectiveFBAs.A copy of the IDS must be presented to a prospective FBA anytime the Compensation Plan ispresented or discussed, or any type of income claim or earnings representation is made.The terms “income claim” and/or “earnings representation” (collectively “income claim”) include:(1) statements of average earnings, (2) statements of nonaverage earnings, (3) statements ofearnings ranges, (4) income testimonials, (5) lifestyle claims, and (6) hypothetical claims.Examples of “statements of nonaverage earnings” include, “Our number one FBA earned overa million dollars last year” or “Our average ranking FBA makes five thousand per month.” Anexample of a “statement of earnings ranges” is “The monthly income for our higher rankingFBAs is ten thousand dollars on the low end to thirty thousand dollars a month on the high end.”3.14 Sales Requirements Are Governed by the Compensation PlanA. F.L.O.W Industry FBAs may purchase F.L.O.W Industry products and then resell themat any price they choose unless otherwise specified by F.L.O.W Industry or by any/its productsuppliers on a per product basis. F.L.O.W Industry will provide suggested selling prices. Thereare no exclusive territories granted to anyone. No franchise fees are applicable to a F.L.O.WIndustry business.B. The F.L.O.W Industry program is built on sales to the ultimate consumer. F.L.O.WIndustry encourages its FBAs to only purchase inventory that they and their family willpersonally consume, will be used as a sales tool, or will be resold to others for their ultimateconsumption. FBAs must never attempt to influence any other FBA to buy more products thanthey can reasonably use or sell to retail Customers in a month.C. Each F.L.O.W Industry FBA commits to personally use, sell, or use in business buildingat least 70% of every order placed with the Company prior to placing another order, and mustbe able to certify to such if demanded by the Company or by any regulatory agency.Purchasing product solely for the purpose of collecting bonuses or achieving rank isprohibited. F.L.O.W Industry retains the right to limit the amount of purchases you may make if,in our sole judgment, we believe those purchases are being made solely for qualificationpurposes instead of for consumption or resale.4.0 ORDERING4.1 General Order PoliciesA. “Bonus Buying” is strictly and absolutely prohibited. Bonus Buying includes:(a) theenrollment of individuals or entities without the knowledge of and/or execution of an Agreementby such individuals or Business Entities; (b) the fraudulent enrollment of an individual or entityas a FBA or Customer; (c) the enrollment or attempted enrollment of nonexistent individuals orBusiness Entities as FBAs or Customers (“phantoms”); (d) purchasing F.L.O.W Industryproducts or services on behalf of another FBA or Customer, or under another FBA’s orCustomer’s ID number, to qualify for commissions or bonuses; (e) purchasing excessiveamounts of products or services that cannot reasonably be used or resold in a month; and/or (f)any other mechanism or artifice to qualify for rank advancement, incentives, prizes,commissions, or bonuses that is not driven by bona fide product or service purchases by enduser consumers.A FBA shall not use another FBA’s or Customer’s credit card or debit checking account to enrollin F.L.O.W Industry or purchase products or services without the account holder’s writtenpermission. Such documentation must be kept by the FBA indefinitely in case F.L.O.W Industryneeds to reference this.B. Regarding an order with an invalid or incorrect payment, F.L.O.W Industry will attempt tocontact the FBA by phone, mail or email in order to obtain another form of payment. If theseattempts are unsuccessful after 10 business days, the order will be canceled.C. If a FBA wants to move an order to another FBA’s position, he or she must have priorauthorization, of all parties involved. F.L.O.W Industry will charge the FBA a $20 fee forprocessing.D. Prices are subject to change without notice.E. A FBA or Customer who is a recipient of a damaged or incorrect order must notifyF.L.O.W Industry within 30 calendar days from receipt of the order and follow the Procedures asset forth in these Policies.4.2 Insufficient FundsA. All checks returned for insufficient funds will be resubmitted for payment. A $35 fee willbe charged to the account of the FBA or Customer for all returned checks and insufficient funds.B. Any outstanding balance owed to F.L.O.W Industry by a FBA or Customer of the FBAfrom NSF (nonsufficient funds) checks, returned check fees or insufficient fund fees (ACH) willbe withheld by F.L.O.W Industry from a FBA’s future bonus and commission checks.