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August 2019
Table of Contents
Page Number
Introduction 1
Sunrider Code of Ethics 3
Definitions 5
SECTION 1: THE SUNRIDER INFINITY COMPENSATION PLAN 8
1. Rank Titles and Rank Qualifications 8
1.1 Independent Business Owner (IBO) 8
1.2 Star 9
1.3 Star Prime 9
1.4 Star Elite 9
1.5 Ace 9
1.6 Ace Prime 10
1.7 Ace Elite 10
1.8 Ace Royal 10
1.9 Hero 11
1.10 Hero Elite 11
1.11 Hero Royal 11
1.12 Icon 12
1.13 Icon Elite 12
1.14 Icon Royal 12
2. Infinity Compensation Plan Bonus Payout 13
2.1 Retail Sales Bonus 14
2.2 Fast Start Bonus 15
2.3 Star Elite Advancement Bonus 15
2.4 Ace Royal Advancement Bonus 15
2.5 Unilevel Bonus 15
2.6 Development Bonus 16
Table of Contents
Page Number
2.7 Turbo Infinity Bonus 17
2.8 Check Match 18
2.9 Icon Bonus 20
2.10 Responsibilities of Leaders
2.11 The Sunrider International Sponsor Leadership Program 22
2.12 Payment of Commissions and Bonuses 22
2.13 Recognition 23
SECTION 2: RULES, POLICIES, AND PROCEDURES 24
1. Establishing , Developing, and Operating an Independent Business 24
1.1 Initial Qualifications 24
1.2 Independent Business Relationships 25
1.3 Financial Representation to Prospective Independent Business Owners 27
1.4 Limitations on Product Claims and Representations 27
1.5 No Purchase Requirements 28
1.6 Training New Independent Business Owners 28
1.7 Sponsorship Restrictions 28
1.8 Cross Organization Activity/Double Sponsoring 29
1.9 Cross-Sponsoring (Conducting Other Businesses) 31
1.10 Operating as a Corporation, Partnership, Trust, or Other Business Entity 32
1.11 Husband and Wife Partnership 34
1.12 Pricing, Ordering, Packaging, Labeling, and Selling 35
1.13 Retailing Restrictions 36
1.14 Advertising, Intellectual Property, and Proprietary Information 37
1.15 Sunrider on the Internet 40
1.16 Sunrider Anti-Spam Policy 44
2. Division of An Independent Business 45
2.1 Division Proposed as a Result of Divorce 46
2.2 Division Proposed as a Result of Partnerships, Corporations, and Other Business Entities 47
3. Sale of An Independent Business 49
4. Transfer Due to Death or Incapacity 51
4.1 Spousal Successor-in-Interest 52
4.2 Children Successors-in-Interest 52
4.3 Other Successors-in-Interest 52
4.4 Additional Information 53
5. Agreement Violations, Investigation, Enforcement, and Resolution Procedures 53
6. Suspension and Termination 54
6.1 Suspension 55
6.2 Voluntary Termination 55
6.3 Involuntary Termination and Sanctions 55
6.4 Rules Applying to All Terminations 56
7. Duration of Account And Renewal 58
8. Excuse of Nonperformance 58
9. Assignment and Delegation 58
10. Notice of Amendment 59
11. Limited Warranty 59
12. Disclaimer of Warranties and Limitation of Liability 60
13. Infringement 60
14. Indemnity 61
15. Integration 61
16. Waiver 61
17. Severability 62
18. Circumvention of Policies 62
19. Dispute Resolution and Arbitration 62
20. Restriction of Period of Limitation of Action 66
21. Miscellaneous 66
SECTION 3: GENERAL OPERATING PROCEDURES 68
1. Independent Business Owner Agreement 68
2. Sunrider Forms 68
3. Ordering Product 69
3.1 Back Orders 70
3.2 Temporarily Out of Stock 70
3.3 Record of Invoices 71
4. Payments 71
4.1 Cashier’s Check/Money Order/Personal Check/Bank Draft/TeleCheck 71
4.2 Returned Checks/Bank Drafts 72
4.3 Credit Cards/PayPal 72
4.4 Cash 72
5. Shipping 73
6. Return of Products 73
6.1 14-Day Return Policies 74
1. First Time Purchase Policy 74
2. Damaged/Defective Product Return Policy 75
6.2 60-Day Return Policy 75
6.3 Extra Product Returns 75
7. Sales Volume Transfer Policy 76
8. Account Changes 76
8.1 The Independent Business Owner Change of Notice Form 76
8.2 Change of Address or Name 76
9. Requesting Reports and Labels 78
9.1 Upline Mail Authorization 78
SUNRIDER® BUSINESS GUIDE UNITED STATES AUGUST 2019
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Sunrider® Business Guide
Introduction
Welcome to Sunrider! Our mission is to nourish the world and inspire a life of balance,
authenticity, and well-being. We believe that investing in the holistic well-being of a person
allows everyone to live out their best life. Because of this, we’re committed to empowering
personal and professional prosperity while also supporting healthy living. We do this by
providing profitable opportunities that empower people to own their own business and
define their own success, as well as crafting all-natural products in Los Angeles that the
whole family can use.
As a new Independent Business Owner (IBO) who is interested in creating an income
through network marketing, you have partnered with a unique company. Our vision is to
foster a culture of opportunity so that people anywhere feel empowered to pave their own
path to success. So at Sunrider, you’re not required to purchase products in order to qualify
for our exciting bonuses. In fact, your success will be tied directly to the amount of work
and effort you put into your Sunrider business.
In order to achieve success with your Sunrider business, you should focus your activities on
the following 5 behaviors, which we like to call the “5 Golden Behaviors”:
SUNRIDER® BUSINESS GUIDE UNITED STATES AUGUST 2019
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This Business Guide together with the Independent Business Owner Application and
Agreement are referred to collectively as the "Sunrider® Business Guide".
An applicant need not purchase any inventory to become an IBO. By completing the
Independent Business Owner Application and Agreement (IBO Agreement) on the Sunrider
website, an IBO is bound by every term and condition of the Sunrider® Business Guide. The
IBO Agreement is only valid for selling products within the US or its territories, and IBOs
must read and understand all of the following policies and procedures before beginning to
conduct business.
Sunrider’s policies, procedures, and agreements are subject to change for any reason at
Sunrider’s sole discretion, without notice, and IBOs are responsible for keeping track of the
latest Sunrider® Business Guide. Sunrider will email revisions to IBOs or post them on the
Sunrider website. Sunrider requests that IBOs maintain regular communication with
Sunrider in order to keep abreast of current policies and procedures. If IBOs become
inactive and then reactivate, it is the obligation of the IBOs to request and obtain any
updates or revisions to the Sunrider® Business Guide that may have been issued during the
time of inactivity.
An IBO’s ultimate growth and success are directly determined by individual efforts and the
sale of product to others. Success results from hard work, diligence, and leadership. The
level of success depends upon how effectively these qualities are exercised.
This Business Guide will help explain our rewarding business plan and will detail what you,
as a Sunrider IBO, need to do in order to qualify to earn bonuses and how those bonuses
are calculated. Sunrider’s Business Service Department will be happy to assist prospective
and current IBOs and provide responses to questions regarding Sunrider. The Business
Service Department can be reached by calling (310) 781-3808 or by email at
info@sunrider.com.
SUNRIDER® BUSINESS GUIDE UNITED STATES AUGUST 2019
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SUNRIDER CODE OF ETHICS
Sunrider is committed to being a good corporate citizen, and as a Sunrider IBO, Sunrider
needs your help in order to for us to keep our commitments to honesty, integrity, and good
business practices. Therefore, IBOs must abide by the Sunrider Code of Ethics when
conducting their Independent Business.
The Code of Ethics states the following:
I will follow the highest standards of honesty and integrity in all that I do.
Sunrider® products are not meant to cure, treat, or mitigate any disease, and I will
not claim or imply that they do. Instead, I will only use statements regarding
products found in current company marketing material.
Sunrider® products are Simply the Best® and should be treated as such. The sale of
Sunrider® products should be based upon genuine consumer demand, and thus the
primary purpose of sales should not be to qualify for a particular rank or to increase
bonus payout.
I will present the Sunrider Business Plan accurately and honestly, clearly portraying
the level of significant effort required to achieve success. I shall not engage in any
deceptive, false, unethical, or unlawful consumer or recruiting practice, and I will
make no statements, promises, or testimonials that are likely to mislead consumers
or prospective IBOs.
The Sunrider Business Plan has been crafted to reward IBOs for their efforts, hard
work, and diligence. Any attempts to circumvent the spirit of this plan (including
but not limited to creating false Customer, Preferred Customer, or IBO accounts,
purchasing Sunrider® products on behalf of another account, and the like) will be
considered a violation of the Code of Ethics.
SUNRIDER® BUSINESS GUIDE UNITED STATES AUGUST 2019
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Sunrider promotes positivity, and therefore I will not make negative or disparaging
remarks about people, products, Sunrider, or other companies that may undermine
the morale, motivation, or income of any IBO.
I will consistently put forth my best effort to promote the success of my Sunrider
business.
I will not engage in activities or other businesses which conflict with or may cause
damage, loss, or harm to Sunrider or to any IBO.
I will use Sunrider trademarks, logos, IBO lists, customer lists, literature, meetings,
gatherings, or any other Sunrider resource only to further the benefit of my
Sunrider business.
I will strive to ensure that my customers are satisfied with Sunrider® products and
with my service and will ensure that they are all aware of Sunrider’s return policy.
I will fulfill all requirements associated with being a sponsor and a responsible
leader as I build my Sunrider business.
I will abide by all rules, regulations, laws, and ordinances that are applicable to the
operation of my Sunrider business. In order to abide by the labeling rules of each
country, Sunrider product may only be sold in the country for which it is labelled.
I will respect the privacy of other IBOs.
Sunrider takes the Code of Ethics very seriously and will investigate reports of violations of
the Code. During its investigation, Sunrider may, in its sole discretion, temporarily suspend
bonuses. If Sunrider, in its sole discretion, determines that allegations of the Code of Ethics
violations are true, Sunrider, in its sole discretion, may subject the IBO to disciplinary
action, including but not limited to the loss of bonuses and the suspension or termination
of their Independent Business.
SUNRIDER® BUSINESS GUIDE UNITED STATES AUGUST 2019
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DEFINITIONS
Independent Business Owner (IBO) is a person who has applied and whose application has
been accepted by Sunrider to resell products and participate in Sunrider’s compensation
plan.
Preferred Customer is a customer who has completed an application to be a Preferred
Customer and paid the applicable $19.95 enrollment fee. Preferred Customers who have
signed up for a $200 monthly Autoship will receive 10% off of the retail price and will
receive free shipping on orders of $100 or greater. Preferred Customers not on Autoship
will receive 5% off of the retail price. Preferred Customers do not hold positions in a
genealogy and do not participate in the compensation plan. Preferred Customers may
cancel their membership at any time and will be thereafter converted to a Retail Customer.
Retail Customer is a customer who purchases Sunrider® products at the retail price. Retail
Customers may sign up to purchase products online or purchase products directly from a
Sunrider IBO. Retail Customers do not hold positions in a genealogy.
A Leader is an IBO with a career title of Ace Royal or above.
Active describes an IBO who has at least 200 Personal Volume (PV) in the month of
qualification. An IBO must be active in order to receive bonuses.
Autoship is a monthly shipping program available to IBOs and Preferred Customers that
allows them to choose the products and packs they would like to receive on a recurring
monthly basis. Autoship is not required for any IBO qualification and can be changed or
cancelled at any time. Preferred Customers who select to autoship products over $200
retail value will be eligible to receive an additional 5% discount off retail price on product
purchases during their enrollment in autoship.
Qualifying Volume (QV) is the value of a commissionable product which is applied toward
IBO qualifications in the compensation plan. QV is a currency neutral point value that
applies internationally.
SUNRIDER® BUSINESS GUIDE UNITED STATES AUGUST 2019
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Commissionable Volume (CV) is the assigned value of each purchased product on which
commissions are paid. It is currency specific to the country in which the order is placed.
Personal Volume (PV) is the total Qualifying Volume (QV) from an IBO’s personal purchases
and that IBO’s personally sponsored customers’ purchases. This does not include the
purchases of the IBO’s downline IBOs.
Downline Volume (DV) is the total Qualifying Volume (QV) of an IBO and his or her entire
downline organization. In other words, it is the total PV of an IBO and his/her downline
IBOs regardless of titles.
Leg begins with a first level IBO and includes all the IBOs beneath them. Therefore, an IBO
will have as many legs as they have first level IBOs.
International Leg is any first level personally sponsored IBO whose home country is
different than the sponsor’s home country, and includes all the IBOs beneath them.
Builder Leg is any first level personally sponsored IBO and his or her entire downline where
at least one IBO is active in that month and the combined total Downline Volume (DV) from
everyone in that leg is at least 1,000 DV.
Level is the position an IBO has in a downline relative to another upline or downline IBO.
Personally sponsored IBOs are the sponsoring IBO’s first level, and so on. Customers are
not considered when counting levels.
Paid-as Title is the title for which an IBO qualifies during the month, regardless of what his
or her Career Title is.
Career Title is the highest title an IBO has achieved since they joined Sunrider, unless they
have not met the qualifications to keep said title.
Generation starts with a Career Title Ace Royal or higher in an IBO’s downline and includes
all the IBOs below them, down to but not including the next IBO that has a Career Title of
SUNRIDER® BUSINESS GUIDE UNITED STATES AUGUST 2019
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Ace Royal or higher. If an IBO with a Career Title of Ace Royal or higher is not paid-as an
Ace Royal or higher, they are still considered the start of a generation.
Personal Group consists of an IBO and his/her downline, down to but not including, the
next Ace Royal or higher (which is the start of his/her first generation).
Maximum Volume Rule (Max Vol Rule) is rule that affects the Star Elite rank and above,
and applies to DV. It states that only up to half of DV requirement of each particular rank
will be counted from any single leg or from the IBO’s own PV for qualification purposes
only. The purpose of this rule is prevent IBOs from inventory loading and from attempting
to “buy” a rank. Any attempt to circumvent the spirit of this rule (including but not limited
to creating false Customer, Preferred Customer, or IBO accounts, purchasing Sunrider®
products on behalf of another account, and the like) will be considered a violation of the
Code of Ethics and this Business Guide.
Net Retail Price represents the price of the product (local country currency) if it was
purchased at the full retail value, not including shipping, tax, etc. The Net Retail Price may
be different than the actual price paid at the time of purchase. If a product was ‘on sale’ or
discounted, then the Personal Sales Commission would be based on what was identified as
the “Net Retail Price” for that discounted rate.
NewGenQ, or “Newly Qualified First Generation,” is a qualification requirement for Icon
rank and above which requires that at least once every 12 months, the Icon or above must
help to promote someone in his or her personal group in his or her home country to Ace
Royal, who then qualifies at that rank (or above) for at least 3 consecutive months. This
rolling twelve month period will restart each time the Icon or above meets the above
requirements. Attempting to circumvent this requirement by any means (including but not
limited to creating false Customer, Preferred Customer, or IBO accounts, purchasing
Sunrider® products on behalf of another account, and the like) will be considered a
violation of the Code of Ethics and this Business Guide.
SUNRIDER® BUSINESS GUIDE UNITED STATES AUGUST 2019
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Inventory Loading occurs when an IBO’s product purchases are made solely in an attempt
to advance in the marketing program, rather than made to satisfy actual consumer demand
in the marketplace for Sunrider® products. Inventory loading is a violation of the terms of
this Business Guide.
Sunrider® Business Guide refers collectively to this Business Guide plus the Independent
Business Owner Application and Agreement.
SUNRIDER BUSINESS GUIDE
SECTION 1: THE SUNRIDER INFINITY COMPENSATION PLAN
1. RANK TITLES AND RANK QUALIFICATIONS
As you promote to a new rank and Career Title within the Sunrider Infinity Compensation
Plan, you will be eligible to qualify for more bonuses. It’s that simple, and by focusing your
efforts on the “5 Golden Behaviors,” you will be rewarded while advancing rank.
The highest rank that you achieve will be your Career Title rank. This is the title that you
will be known as to your fellow IBOs. Career Titles of Ace Elite or lower will never drop.
Career Titles of Ace Royal or higher will be retained as long as you have qualified at that
title for at least 3 out of the last 12 months. If you have not qualified at that title for at least
3 out of the last 12 months, your Career Title will demote to the highest title at which you
qualified at least 3 times in the previous 12 month period, but will never demote lower
than Ace Elite. This is a 12 month rolling window.
Your Paid-as Title is simply the title at which you qualify for in a given month. Therefore,
depending on your effort and success, your Paid-as Title may fluctuate each month while
your Career Title remains the same until you promote to a rank above your current Career
Title.
The following is a list of titles and their respective qualifications:
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1.1 Independent Business Owner (IBO) is the starting rank for anyone who has
joined Sunrider to participate in the Sunrider Infinity Compensation Plan. To become an
IBO, an applicant must be 18 years or older, complete the IBO Application and Agreement,
and purchase a Starter Pack. An IBO may not have the same mailing address as a Retail
Customer, Preferred Customer, or another IBO.
IBOs are allowed to purchase products at the Sunrider IBO Price, which is 10% off of the
retail price. IBOs can qualify to earn the Retail Sales Bonus as well as the Fast Start Bonus
immediately after joining.
One year after joining Sunrider, an IBO must pay the annual renewal fee of $59 to continue
IBO membership, which will be automatically charged to the IBO’s credit card on file at the
IBO’s anniversary date. If an IBO no longer wishes to be a Sunrider IBO and participate in
the compensation plan, they may cancel at any time. If an IBO cancels their account within
60 days of paying the renewal fee only, the renewal fee will be reimbursed in full. If an IBO
does not pay the annual renewal fee, he/she will convert to a customer.
To qualify as an active IBO for purposes of the compensation plan, an IBO must have at
least 200 Personal Volume (PV) in the month of qualification. In order to keep an IBO
account open, IBOs must accumulate at least 200 PV each 12 month period and pay the
annual renewal fee or they will be converted to Preferred Customers. IBOs who have not
accumulated at least 200 PV in a 12 month period will be automatically terminated and
lose their downline, including Customers and Preferred Customers. IBOs who are
terminated or who self-terminate may sign up again as an IBO following the above steps.
1.2 Star rank is an IBO who has at least 200 PV and 500 DV in the month of
qualification. A Star qualifies for the Retail Sales Bonus, Fast Start Bonus, as well as the
Unilevel Bonus.
1.3 Star Prime rank is an IBO who has at least 300 PV and 1,000 DV in the month
of qualification. A Star Prime qualifies for the Retail Sales Bonus, Fast Start Bonus, as well
as the Unilevel Bonus.
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1.4 Star Elite rank is an IBO who has at least 400 PV and 1,800 DV in the month
of qualification. Beginning at this rank, the Maximum Volume Rule will apply to DV, which
states that only up to half of DV requirement (in this case 900 DV) will be counted from any
single leg or from the Star Elite’s own PV for qualification purposes only. A Star Elite
qualifies for the Retail Sales Bonus, Fast Start Bonus, Unilevel Bonus, as well as the Star
Elite Advancement Bonus.
1.5 Ace rank is an IBO who has at least 500 PV and 3,000 DV in the month of
qualification. The Maximum Volume Rule will apply to DV, which states that only up to half
of the DV requirement (in this case 1,500 DV) will be counted from any single leg or from
the Ace’s own PV for qualification purposes only. Beginning at this rank, there is an
additional qualification requirement of 1 Builder Leg. A Builder Leg is a leg with at least one
active IBO (200 PV) and at least 1,000 DV in that leg. An Ace qualifies for the Retail Sales
Bonus, Fast Start Bonus, Unilevel Bonus, as well as the Star Elite Advancement Bonus.
1.6 Ace Prime rank is an IBO who has at least 600 PV and 5,000 DV in the month
of qualification. The Maximum Volume Rule will apply to DV, which states that only up to
half of the DV requirement (in this case 2,500 DV) will be counted from any single leg or
from the Ace Prime’s own PV for qualification purposes only. There is an additional
qualification requirement of 2 Builder Legs. An Ace Prime qualifies for the Retail Sales
Bonus, Fast Start Bonus, Unilevel Bonus, the Star Elite Advancement Bonus, as well as the
Development Bonus.
1.7 Ace Elite rank is an IBO who has at least 700 PV and 7,000 DV in the month
of qualification. The Maximum Volume Rule will apply to DV, which states that only up to
half of the DV requirement (in this case 3,500 DV) will be counted from any single leg or
from the Ace Elite’s own PV for qualification purposes only. There is an additional
qualification requirement of 3 Builder Legs. An Ace Elite qualifies for the Retail Sales Bonus,
Fast Start Bonus, Unilevel Bonus, the Star Elite Advancement Bonus, as well as the
Development Bonus.
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1.8 Ace Royal rank is an IBO who has at least 800 PV and 10,000 DV in the month
of qualification. The Maximum Volume Rule will apply to DV, which states that only up to
half of the DV requirement (in this case 5,000 DV) will be counted from any single leg or
from the Ace Royal’s own PV for qualification purposes only. There is an additional
qualification requirement of 4 Builder Legs. An Ace Royal qualifies for the Retail Sales
Bonus, Fast Start Bonus, Unilevel Bonus, the Star Elite Advancement Bonus, the
Development Bonus, as well as the Ace Royal Advancement Bonus.
1.9 Hero rank is an IBO who has at least 800 PV and 18,000 DV in the month of
qualification. The Maximum Volume Rule will apply to DV, which states that only up to half
of the DV requirement (in this case 9,000 DV) will be counted from any single leg or from
the Hero’s own PV for qualification purposes only. There is an additional qualification
requirement of 3 Builder Legs and 1 Ace Royal or above Leg (Builder Leg with at least one
IBO qualifying as an Ace Royal or above in it). A Hero qualifies for the Retail Sales Bonus,
Fast Start Bonus, Unilevel Bonus, the Star Elite Advancement Bonus, the Development
Bonus, the Ace Royal Advancement Bonus, the Turbo Infinity Bonus, as well as Check
Match.
1.10 Hero Elite rank is an IBO who has at least 800 PV and 36,000 DV in the month
of qualification. The Maximum Volume Rule will apply to DV, which states that only up to
half of the DV requirement (in this case 18,000 DV) will be counted from any single leg or
from the Hero Elite’s own PV for qualification purposes only. There is an additional
qualification requirement of 2 Builder Legs and 2 Ace Royal or above Legs (Builder Leg with
at least one IBO qualifying as an Ace Royal or above in it). A Hero Elite qualifies for the
Retail Sales Bonus, Fast Start Bonus, Unilevel Bonus, the Star Elite Advancement Bonus, the
Development Bonus, the Ace Royal Advancement Bonus, the Turbo Infinity Bonus, as well
as Check Match.
1.11 Hero Royal rank is an IBO who has at least 800 PV and 90,000 DV in the
month of qualification. The Maximum Volume Rule will apply to DV, which states that only
up to half of the DV requirement (in this case 45,000 DV) will be counted from any single
SUNRIDER® BUSINESS GUIDE UNITED STATES AUGUST 2019
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leg or from the Hero Royal’s own PV for qualification purposes only. There is an additional
qualification requirement of 1 Builder Leg and 3 Ace Royal or above Legs (Builder Leg with
at least one IBO qualifying as an Ace Royal or above in it). A Hero Royal qualifies for the
Retail Sales Bonus, Fast Start Bonus, Unilevel Bonus, the Star Elite Advancement Bonus, the
Development Bonus, the Ace Royal Advancement Bonus, the Turbo Infinity Bonus, as well
as Check Match.
1.12 Icon rank is an IBO who has at least 800 PV and 225,000 DV in the month of
qualification. The Maximum Volume Rule will apply to DV, which states that only up to half
of the DV requirement (in this case 112,500 DV) will be counted from any single leg or from
the Icon’s own PV for qualification purposes only. There is an additional qualification
requirement of 3 Ace Royal or above Legs (Builder Leg with at least one IBO qualifying as
an Ace Royal or above in it) and 2 Hero or above Legs (Builder Leg with at least one IBO
qualifying as a Hero or above in it). At this leader rank, in order to qualify, at least once
every rolling twelve months, the Icon must help an IBO in his or her Personal Group in his
or her home country advance to the Ace Royal rank, qualify at that rank (or above) for at
least 3 consecutive months, and become the Icon’s new first generation. This rule is known
as the “NewGenQ” rule (New First Generation Qualified). An Icon qualifies for the Retail
Sales Bonus, Fast Start Bonus, Unilevel Bonus, the Star Elite Advancement Bonus, the
Development Bonus, the Ace Royal Advancement Bonus, the Turbo Infinity Bonus, Check
Match, as well as the Icon Bonus.
1.13 Icon Elite rank is an IBO who has at least 800 PV and 600,000 DV in the
month of qualification. The Maximum Volume Rule will apply to DV, which states that only
up to half of the DV requirement (in this case 300,000 DV) will be counted from any single
leg or from the Icon Elite’s own PV for qualification purposes only. There is an additional
qualification requirement of 3 Ace Royal or above Legs (Builder Leg with at least one IBO
qualifying as an Ace Royal or above in it) and 2 Hero Elite or above Legs (Builder Leg with
at least one IBO qualifying as a Hero Elite or above in it). The NewGenQ rule applies to this
rank. An Icon Elite qualifies for the Retail Sales Bonus, Fast Start Bonus, Unilevel Bonus, the
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Star Elite Advancement Bonus, the Development Bonus, the Ace Royal Advancement
Bonus, the Turbo Infinity Bonus, Check Match, as well as the Icon Bonus.
1.14 Icon Royal rank is an IBO who has at least 800 PV and 1,650,000 DV in the
month of qualification. The Maximum Volume Rule will apply to DV, which states that only
up to half of the DV requirement (in this case 825,000 DV) will be counted from any single
leg or from the Icon Royal’s own PV for qualification purposes only. There is an additional
qualification requirement of 3 Ace Royal or above Legs (Builder Leg with at least one IBO
qualifying as an Ace Royal or above in it) and 2 Hero Royal or above Legs (Builder Leg with
at least one IBO qualifying as a Hero Royal or above in it). The NewGenQ rule applies to this
rank. An Icon Royal qualifies for the Retail Sales Bonus, Fast Start Bonus, Unilevel Bonus,
the Star Elite Advancement Bonus, the Development Bonus, the Ace Royal Advancement
Bonus, the Turbo Infinity Bonus, Check Match, as well as the Icon Bonus.
2. INFINITY COMPENSATION PLAN BONUS PAYOUT
Only registered IBOs may participate in the Infinity Compensation Plan. Through Sunrider’s
compensation plan, IBOs may earn income through the sale of Sunrider® products. Bonuses
are designed to reward IBOs for their leadership, regular training, sales, and motivational
efforts.
Eligibility for bonuses will cease if:
1. An IBO makes any significant misrepresentation on the IBO Agreement or any
violation of the Sunrider® Business Guide, the Sunrider Code of Ethics, or the rules
governing the Business Plan programs; or
2. An IBO engages in or is responsible for cross-sponsoring or double sponsoring.
Sunrider reserves the right to address violations of these provisions on a case-by-case basis
to ensure that all recipients of bonuses manifest the true spirit of leadership for which
SUNRIDER® BUSINESS GUIDE UNITED STATES AUGUST 2019
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these rewards are intended. Disciplinary action may include possible suspension from
compensation plan programs for up to six months or possible termination of the
Independent Business.
For sponsors to receive credit toward bonuses, new applications and all orders must be
entered on the Sunrider website by the last day of the calendar month.
2.1 Retail Sales Bonus
The Retail Sales Bonus is a combination of Personal Sales Commissions and Retail Profit.
Personal Sales Commissions and Retail Profit are paid on the net retail price excluding
taxes. IBOs will earn 5% Personal Sales Commissions on their total PV when their PV is
between 500-1,999 PV during the month of qualification. IBOs will earn 10% Personal Sales
Commissions on their total PV when their PV is between 2,000-4,999 PV in the month of
qualification. IBOs will earn 15% Personal Sales Commissions on their total PV when their
PV is 5,000 PV or greater in the month of qualification.
IBOs will also earn up to 10% Retail Profit on the sale of Sunrider® products depending on
whether the sale is to a Retail Customer or Preferred Customer.
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2.2 Fast Start Bonus
The Fast Start period begins when a person first enrolls as an IBO (the enrollment month)
and lasts for the enrollment month plus the 3 following months. During their Fast Start
period, IBOs with 250 PV or more of personal purchases in a month will receive $50 of
product credit for each new IBO they sponsor who personally purchases 250 PV or greater
in that month. During their Fast Start period, IBOs with 250 PV or greater in a month will
receive a free product (to be determined by the local Sunrider office in its sole discretion)
for each Preferred Customer that the IBO signs up with an Autoship order of $100 or
greater that same month.
Star Prime Advancement Bonus: an IBO who advances in rank for the first time to Star
Prime within his or her first month plus the month of enrollment will earn the Star Prime
Advancement Bonus of $50.
An IBO who sponsors a new IBO who advances in rank to Star Prime within his or her first
month plus the month of enrollment will earn a Matching Star Prime Advancement Bonus
of $50. The sponsoring IBO must also be qualified as a Star Prime or above during the
month of advancement in order to receive the matching bonus.
Star Elite Advancement Bonus: an IBO who advances in rank for the first time to Star Elite
within his or her first 3 months plus the month of enrollment will earn the Star Elite
Advancement Bonus of $100.
An IBO who sponsors a new IBO who advances in rank to Star Elite within his or her first 3
months plus the month of enrollment will earn a Matching Star Elite Advancement Bonus
of $100. The sponsoring IBO must also be qualified as a Star Elite or above during the
month of advancement in order to receive the matching bonus.
Ace Advancement Bonus: an IBO who advances in rank for the first time to Ace within his
or her first 3 months plus the month of enrollment will earn the Ace Advancement Bonus
of $200.
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An IBO who sponsors a new IBO who advances in rank to Ace within his or her first 3 months
plus the month of enrollment will earn a Matching Ace Advancement Bonus of $200. The
sponsoring IBO must also be qualified as an Ace or above during the month of advancement
in order to receive the matching bonus.
Ace Prime Advancement Bonus: an IBO who advances in rank for the first time to Ace
Prime within his or her first 3 months plus the month of enrollment will earn the Ace Prime
Advancement Bonus of $350.
An IBO who sponsors a new IBO who advances in rank to Ace Prime within his or her first 3
months plus the month of enrollment will earn a Matching Ace Prime Advancement Bonus
of $350. The sponsoring IBO must also be qualified as an Ace Prime or above during the
month of advancement in order to receive the matching bonus.
2.3 Ace Royal Advancement Bonus
When an IBO advances in rank to Ace Royal for the first time, that IBO will earn the Ace
Royal Advancement Bonus of $500.
The first upline of this IBO with the Career Title of Ace Royal or higher will receive a
Matching Ace Royal Advancement Bonus of $500 as long as that upline IBO also qualifies
as an Ace Royal or above during the month of advancement.
2.4 Unilevel Bonus
Active IBOs that are qualified as a Star or above in the month of qualification may receive
a percentage on the CV from the sales of their downline. The percentage they may receive
and the number of levels they will receive it on is based on their Paid-as Title during the
month of qualification.
The Unilevel Bonus will pay out according to the chart below and will pay out a maximum
of 5 levels deep. This bonus is capped at 23% of CV in the IBO’s home country in the month
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of qualification, and should the total bonus payout exceed the cap that month, this bonus
will be reduced proportionally that month.
2.5 Development Bonus
IBOs who qualify as Ace Prime or above during the month of qualification may earn the
Development Bonus in two different ways: Personal Group and First Generation. Bonus
payout is determined by downline Paid-as Title as well as the sponsoring IBO Paid-as Title
in the month of qualification. This bonus is capped at 2% of CV in the IBO’s home country
in the month of qualification, and should the total bonus payout exceed the cap that
month, this bonus will be reduced proportionally for that month.
Personal Group Development Bonus: IBOs who qualify for this bonus will earn a flat bonus
of $30, $60, OR $80 on EACH leg on IBOs within their personal group (Ace, Ace Prime,
and/or Ace Elite). The amount paid is based on the highest Paid-as Title IBO in each leg
within their personal group but will not exceed the bonus amount equal to the Pay-to IBO’s
own Paid-as Title. For example, if the sponsor IBO was Paid-as an Ace Prime and the highest
Paid-as Title within the IBO’s personal group in a specific leg was Ace Elite, the sponsor IBO
will receive the bonus amount for Ace Prime instead of Ace Elite for that leg.
1st Generation Leg Development Bonus: IBOs who qualify for this bonus will also earn a
flat bonus of $100 on EACH leg with a first generation Ace Royal or above in it, as long as
the IBOs qualify as Ace Royal or above in the month of qualification. IBOs who qualify as
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Ace Elite in the month of qualification will earn the $80 Ace Elite bonus payout on each leg
with a first generation Ace Royal or above in it. IBOs who qualify as Ace Prime in the month
of qualification will earn the $60 Ace Prime level bonus payout on each leg with a first
generation Ace Royal or above in it.
Paid-as Title of the Pay-on IBO
Monthly Fixed Bonus Paid to Ace Prime
and above
(2% Cap)
Ace $30
Ace Prime $60
Ace Elite $80
1st Generation ACE ROYAL and above
$100
2.6 Turbo Infinity Bonus
IBOs who qualify as a Hero or above in the month of qualification are eligible to receive this
bonus. The Turbo Infinity Bonus pays a percentage on all CV level 6 and below, going
infinitely deep. The percentage that an IBO may receive is based on their Paid-as Title
during the month of qualification. This bonus is capped at 3% of CV in the IBO’s home
country in the month of qualification, and should the total bonus payout exceed the cap
that month, this bonus will be reduced proportionally that month.
IBOs who qualify as Hero or above will receive a 0.5% Turbo Infinity Bonus payout on all
their CV from level 6 on down.
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2.7 Check Match
IBOs who are Paid-as Hero or above in the month of qualification are eligible to receive the
Check Match Bonus. Qualified IBOs will receive this bonus on their downline Career Title
Ace Royals and above (PayOn IBOs). This bonus is paid on a percentage of the downline’s
Fast Start Bonus, Unilevel Bonus, and Turbo Infinity Bonus payouts in the month of
qualification. The percentage of Check Match Bonus payout is based on the Paid-as Title of
the downline PayOn IBO in the month of qualification that the Check Match is being paid
on, but will not exceed the upline qualifying IBO’s Paid-as Title during the month of
qualification. The number of generations a qualifying IBO can earn Check Match on is based
on that qualifying IBO’s Paid-as Title during the month of qualification. There is a cap on
each Check Match a qualifying IBO may receive, which is based on the qualifying IBO’s Paid-
as Title during the month of qualification. This bonus is capped at 8% of CV in the IBO’s
home country in the month of qualification, and should the total bonus payout exceed the
cap that month, this bonus will be reduced proportionally for that month.
IBOs who qualify as a Hero will receive 18% on all their first generation Paid-as Heroes and
above, 15% on all first generation Paid-as Ace Royals, and 10% on any first generation
Career Title Ace Royals who do not qualify as an Ace Royal in the month of qualification.
There is a $1,000 per match cap on each downline check match.
IBOs who qualify as a Hero Elite will receive 20% on all their first and second generation
Paid-as Hero Elites and above, 18% on all first and second generation Paid-as Heroes, 15%
on all first and second generation Paid-as Ace Royals, and 10% on any first and second
generation Career Title Ace Royals who do not qualify as an Ace Royal in the month of
qualification. There is a $2,000 per match cap on each downline check match.
IBOs who qualify as a Hero Royal will receive 22% on all their first, second, and third
generation Paid-as Hero Royals and above, 20% on all first, second, and third generation
Paid-as Hero Elites, 18% on all first, second, and third generation Paid-as Heroes, 15% on
all first, second, and third generation Paid-as Ace Royals, and 10% on any first, second, and
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third generation Career Title Ace Royals who do not qualify as an Ace Royal in the month
of qualification. There is a $3,000 per match cap on each downline check match.
IBOs who qualify as an Icon will receive 25% on all their first through fourth generation
Paid-as Icons and above, 22% on all their first through fourth generation Paid-as Hero
Royals, 20% on all first through fourth generation Paid-as Hero Elites, 18% on all first
through fourth generation Paid-as Heroes, 15% on all first through fourth generation Paid-
as Ace Royals, and 10% on any first through fourth generation Career Title Ace Royals who
do not qualify as an Ace Royal in the month of qualification. There is a $4,000 per match
cap on each downline check match.
IBOs who qualify as an Icon Elite will receive 27% on all their first through fifth generation
Paid-as Icon Elites and above, 25% on all their first through fifth generation Paid-as Icons,
22% on all their first through fifth generation Paid-as Hero Royals, 20% on all first through
fifth generation Paid-as Hero Elites, 18% on all first through fifth generation Paid-as Heroes,
15% on all first through fifth generation Paid-as Ace Royals, and 10% on any first through
fifth generation Career Title Ace Royals who do not qualify as an Ace Royal in the month of
qualification. There is a $5,000 per match cap on each downline check match.
IBOs who qualify as an Icon Royal will receive 30% on all their first through sixth generation
Paid-as Icon Royals, 27% on all their first through sixth generation Paid-as Icon Elites, 25%
on all their first through sixth generation Paid-as Icons, 22% on all their first through sixth
generation Paid-as Hero Royals, 20% on all first through sixth generation Paid-as Hero
Elites, 18% on all first through sixth generation Paid-as Heroes, 15% on all first through sixth
generation Paid-as Ace Royals, and 10% on any first through sixth generation career title
Ace Royals who do not qualify as an Ace Royal in the month of qualification. There is a
$6,000 per match cap on each downline check match.
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2.8 Icon Bonus
IBOs who promote to the title of Icon or above for the first time will be eligible to receive
a one-time Icon Bonus. For each promotion, the bonus amount will be paid across multiple
consecutive months as long as the IBO is Paid-as the promoted title or higher. If an IBO is
not Paid-as the promoted title in one (or more) of the months that a payment would
normally be paid, that IBO will not receive that month’s pay out amount. Remaining
payments can still be earned but will be based on being Paid-as the promoted title or higher
in any of the remaining payment months.
When an IBO advances in rank to Icon for the first time, that IBO qualifies for the $10,000
Icon Bonus. This bonus is paid out at $2,000 a month over 5 consecutive months beginning
with the month of advancement as long as the IBO qualifies as an Icon or higher. If the IBO
does not qualify as an Icon or above in any of the following four months, the IBO will not
receive the bonus payout for each month he or she does not qualify.
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When an IBO advances in rank to Icon Elite for the first time, that IBO qualifies for the
$20,000 Icon Bonus. This bonus is paid out over 8 consecutive months at $2,500 a month
beginning with the month of advancement. If the IBO does not qualify as an Icon Elite or
above in any of the following 7 months, the IBO will not receive the bonus payout for each
month he or she does not qualify.
When an IBO advances in rank to Icon Royal for the first time, that IBO qualifies for the
$50,000 Icon Bonus. This bonus is paid out over 12 consecutive months at $4,666.67 a
month beginning with the month of advancement. If the IBO does not qualify as an Icon
Royal in any of the following 11 months, the IBO will not receive the bonus payout for each
month he or she does not qualify.
An IBO who advances from one Icon title to a higher Icon title during the first Icon Bonus’
payment period will be able to earn more than one Icon Bonus simultaneously.
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2.9 Responsibilities of Leaders
Ace Royals and above are Leaders who are most likely operating their Sunrider businesses
on a full time basis and earning a large income. Ace Royals and above are held to a higher
standard of integrity and responsibility because they are role models in the Sunrider
community and to their large organizations. Accordingly, Leaders and their spouses may
not participate directly or indirectly in another single-level direct selling, multi-level direct
selling, or other network marketing business, and must not engage in activities or other
businesses (regardless of the nature of the other business) which would conflict with or
may cause damage, loss, or harm to another IBO or to Sunrider. Sunrider customer and IBO
lists are for the sole purpose of operating a Sunrider Independent Business, and may not
be used to further any other business interest. Leaders must train their newly sponsored
downlines on how to grow their businesses and must conduct training meetings at least
once every three months (Leader must submit training schedule and proof of training
meetings upon request), and Leaders must maintain frequent contact with their downline
at least once per month (in person visits, meetings, emails, phone calls, etc.). It is a Leader’s
responsibility to insure that activities carried on by their downline conform to the rules of
the Business Guide and Code of Ethics; these frequent contacts and training sessions should
be used to help insure adherence to these rules. Leaders must provide recognition to their
downline to reward and acknowledge accomplishments. Failure to fulfill these Leader
responsibilities will result in penalties, including but not limited to loss of bonuses and
termination.
2.10 The Sunrider International Sponsor Leadership Program
IBOs who are Career Title Ace Royals and above in their home country may participate in
the Sunrider International Sponsor Leadership Program. They must have qualified at Ace
Royal or above for at least two consecutive months; thereafter, qualifying IBOs should
contact their country manager for approval and to inform them of their desire to begin
sponsoring internationally. Once approved, they must receive an orientation by Sunrider
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staff in the other country. Such orientation allows international sponsors to understand the
nuances of the compensation plan in the other country and the related rules of doing
business in the other country. After completing their orientation, Ace Royals and above
may begin sponsoring internationally and must train their international downlines in
accordance with Sunrider’s current guidelines and procedures in the foreign country.
Downline training will include the use of Sunrider-produced promotional materials and
conducting training and sales meetings. International Sponsors should hold regular
trainings as a Leader via phone, email, conference calls, webinars, or in-person as needed
and appropriate (please see 2.10 Responsibilities of Leaders above).
As a seamless global plan designed to reward leaders for developing stable organizations,
QV from a foreign country (which is not currency specific) will help the IBO’s qualification
requirements, while all sales in the foreign country will be based on CV (which is currency
specific). At the end of each qualification month, bonuses from the CV of the foreign
country will be converted into the IBO’s home currency based on the published currency
conversion rates. Please check with your local IBO Business Service Department at (310)
781-3808 for the applicable conversion rates. Please remember that newly promoted
international Ace Royals will not fulfill the NewGenQ requirement, which requires Icons
and above to promote someone in their personal group in their home country at least once
every 12 months to Ace Royal, who then qualifies at that rank (or above) for at least 3
consecutive months.
Should an international sponsor fail to qualify at Ace Royal or above, any DV from that
sponsor’s international legs will continue to count towards the international sponsoring
IBO’s DV for qualification purposes only; the international sponsor will earn only the Retail
Sales Bonus (based on PV) on international legs in the month the international sponsor
does not qualify at Ace Royal or above. All local caps will still apply to bonuses paid on or
derived from international sales.
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2.11 Payment of Commissions and Bonuses
Bonus checks are issued once a month and are typically mailed to IBOs on the 20th of the
following month.
IBOs should review each bonus recap statement immediately and report any discrepancies
within 20 days of receipt. IBOs can review bonus recap statements online at the Business
Center on the Sunrider website (business.sunrider.com).
If an IBO has not received a check within 15 days from the date the check should have been
issued, the IBO should contact the Business Service Department. The Business Service
Department will arrange to issue a replacement check if the original check is not located.
If an IBO fails to either report a lost check or request a re-issuance of a missing bonus check
between six and twelve months after the check issue date, Sunrider will assess a $25 charge
to issue a replacement check.
If an IBO fails to report a lost check, fails to request a new bonus check, or fails to cash a
bonus check after twelve months from the check issue date, Sunrider will cancel the check
and will not issue a replacement check.
2.12 Recognition
A Certificate of Achievement will be awarded to all Star Elite and above when they first
qualify at a new rank.
At Sunrider’s Annual Grand Convention, newly qualified first time Ace Royals and above
will receive special recognition on stage. All Heroes and above will receive special
recognition at Sunrider’s Annual Grand Convention for achieving and/or continuing to
qualify at the new rank during the qualification period.
Ace Royals and above are recognized in the SunWriter Magazine on the Sunrider website.
Recognition in the magazine is according to the rank achieved.
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SUNRIDER BUSINESS GUIDE
SECTION 2: RULES, POLICIES, AND PROCEDURES
1. ESTABLISHING, DEVELOPING, AND OPERATING AN INDEPENDENT BUSINESS
1.1 Initial Qualifications
In order to become an authorized Independent Business Owner (IBO), an individual
applicant must be at least 18 years of age, fully complete and submit the IBO Application
and Agreement, and purchase a Starter Pack. The applicant must have a complete mailing
address in the United States or its territories and a valid tax identification number. IBOs
may not have the same mailing address as another IBO. The applicant must also possess,
maintain, and be familiar with the current Sunrider® Business Guide. Authorization to
distribute Sunrider® products and to participate in the compensation plan is effective on
the day Sunrider emails the applicant notice of acceptance of the IBO Application and
Agreement. IBOs are required to pay an annual $59 renewal fee beginning on their first
anniversary date, which will be automatically charged to the IBOs credit card on file at the
IBO’s anniversary date. If an IBO no longer wishes to be a Sunrider IBO and participate in
the compensation plan, they may cancel at any time. If an IBO cancels their account within
60 days of paying the renewal fee only, the renewal fee will be reimbursed in full.
An individual may not participate in more than one IBO account. A spouse of an IBO who
wishes to join will be included as part of the IBO’s account and may not open a separate
IBO account. An applicant may not own all or part of any other IBO account either
individually or jointly, nor participate as a partner, owner, shareholder, trustee, officer,
manager, director, association member, or beneficiary or have any other legal or beneficial
interest in another IBO account.
The key to building a successful Independent Business is the sale of Sunrider® products.
Sunrider requires that all IBOs understand the “personal network philosophy,” which refers
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to the requirement that IBOs build their Independent Business by personal contact with
prospective customers and IBOs. IBOs will have the opportunity to sponsor, train, and
motivate others to become IBOs. Sponsoring requires IBOs to introduce prospects to
Sunrider® products and literature, to train or make training available to prospective IBOs,
and to maintain an ongoing dialogue with prospective IBOs by answering questions and
responding to concerns. By signing the IBO Application and Agreement, IBOs represent that
they understand the personal network philosophy and intend to build a business based on
this philosophy.
1.2 Independent Business Relationship
IBOs are independent contractors with Sunrider. Under no circumstances (including for tax
purposes) shall IBOs be considered agents or employees of Sunrider.
IBOs shall not represent that they have an employment relationship with Sunrider or any
Sunrider affiliate. IBOs shall not make any purchases or enter into any transactions in
Sunrider’s name. As indicated in the compensation plan, IBOs may be assigned certain rank
designations, such as “Ace Royal” and “Hero Elite.” These designations do not establish an
employment or managerial relationship with Sunrider and only indicate the type of
commissions, bonuses, and sales incentives for which IBOs may be eligible. IBOs may not
publicly refer to themselves by such terminology or rank designations and may not use such
terminology or rank designation on their own stationery, business cards, or other printed
or electronic material. IBOs shall not refer to themselves as “agents” or “company
representatives” and shall only refer to themselves as Independent Business Owners or
IBOs.
IBOs set their own hours and determine their own methods of sale, as long as the methods
of sale comply fully with the Sunrider® Business Guide. IBOs shall be responsible for all costs
of conducting their business. IBOs accept sole responsibility for all self-employment and
income taxes due on commissions, bonuses, and incentives earned as IBOs.
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IBOs shall be responsible for complying with all laws, including tax laws, in the country in
which they reside and/or operate their Sunrider business. If local law requires IBOs to
obtain a business license or seller’s permit, they must check with the appropriate
authorities to ensure full compliance with applicable laws.
Sunrider must report to the Internal Revenue Service (IRS) all payments to individual IBOs
of $600 or more per calendar year. Sunrider will provide a copy of IRS form 1099 to each
IBO who has been paid $600 or more per year. Sunrider will deduct withholding taxes from
commissions, bonuses, and incentives paid to individual IBOs who are nonresident aliens.
A valid social security or taxpayer identification number must be provided to Sunrider for
tax reporting purposes. IBOs should consult with their tax advisor with respect to IRS tax
reporting requirements.
Sunrider charges sales/use tax based on the tax rate at the location where the goods are
delivered to the IBO. Sunrider collects sales tax based on the prevailing regulations in each
state.
Sunrider will accept valid resale certificates from IBOs for sales tax purposes. When IBOs
with valid resale certificates resell products, they will be responsible for the sales tax on
the resale. They may also be responsible for use tax for products that they consume.
In the event that IBOs without valid resale certificates resell products, they may be
responsible for the difference between the tax collected by Sunrider and the additional
sales tax due on the resale price. IBOs should consult with a tax advisor regarding sales and
use tax reporting requirements.
1.3 Financial Representations to Prospective Independent Business Owners
IBOs must tell prospective IBOs that success under the Sunrider Infinity Compensation Plan
requires the expenditure of significant time and effort. IBOs must explain that the retail
sale or marketing of products is an essential element of the Sunrider Compensation Plan
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and that IBOs will not be successful merely by recruiting others into the business without
regard to sales of products.
IBOs shall not make any guarantee of income of profits. IBOs must not misrepresent actual
or potential sales, earnings, or profits, or make any undocumented, deceptive, misleading,
or illegal earnings claims. IBOs should share Sunrider’s Income Disclosure Statement with
prospective IBOs.
IBOs should use only current marketing materials produced by Sunrider and must ensure
that each prospective IBO receives a copy of the most current version of the Sunrider®
Business Guide.
1.4 Limitations on Product Claims and Representations
IBOs shall only make any representations regarding Sunrider® products or programs that
are complete, accurate, and truthful. IBOs shall not distort or misrepresent the quality,
purpose of, or benefits that may be received by consuming Sunrider® products. Sunrider®
products are not intended for use in the diagnosis, cure, mitigation, prevention, or
treatment of any medical condition. IBOs shall not represent or make any statement to
the contrary.
IBOs, unless licensed to do so, shall not diagnose or treat illness or other physical, mental,
or emotional conditions.
IBOs shall not state that any governmental agency or authority has approved or endorsed
Sunrider’s products or programs unless Sunrider has made the statement.
1.5 No Purchase Requirements
IBOs may not require or harass others to:
1. Purchase a specific amount of product;
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2. Maintain a minimum inventory;
3. Purchase a non-Sunrider produced pack or kit;
4. Purchase tapes, literature, audio-visual aids, or other materials;
5. Participate in any ongoing activities that require the purchase of products or
programs; or
6. Purchase tickets for and/or attend or participate in rallies, seminars, or other
meetings.
1.6 Training New Independent Business Owners
Sponsoring IBOs must provide training or make training available to every new IBO that
they sponsor. While in-person training is encouraged, it may not always be practical.
Therefore, training via phone, email, webinars, or the like is acceptable.
1.7 Sponsorship Restrictions
IBOs are introduced to Sunrider their sponsor. Immediate sponsorship changes are
generally not allowed. IBOs who are not active for a 12 month period will automatically be
terminated and converted to customers. Former IBOs may sign up again as a new IBO and
may sign up under a new sponsor only if they have not been engaged in any Sunrider
business activity for 6 months if their Career Title was Ace Elite or below, or for 12 months
if their Career Title was Ace Royal or above.
However, occasionally and under certain circumstances, Sunrider may grant an IBO’s
request for a change of sponsor without requiring the IBO to be inactive for the applicable
term of months.
IBOs who feel that a sponsor change is necessary because their sponsor is in violation of
the Sunrider® Business Guide and/or company policies should contact Sunrider’s Business
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Service Department and submit all pertinent information in writing. Sunrider will review
the request, investigate the matter, and in its sole discretion determine whether or not to
grant the request for a sponsor change.
Should Sunrider grant the request for a sponsor change, Sunrider may implement the
sponsor change by changing the IBO’s sponsor to the next qualified upline IBO or by placing
the IBO directly under Sunrider until an appropriate new sponsor is selected. Sunrider will,
at its sole discretion, determine how the sponsor change will take place, determine who
will be the new sponsor, and determine whether to move solely the IBO making the request
for a sponsor change or move that IBO’s entire downline organization with them.
1.8 Cross Organization Activity/Double Sponsoring
Independent Business Owners shall not engage in cross organization activity/double
sponsoring. Double sponsoring occurs when an existing IBO signs up under a different
sponsor or when an IBO operates two Independent Businesses simultaneously. These
prohibitions against double sponsoring also apply internationally.
In order to minimize the possibility of double sponsoring, IBOs’ immediate family members,
including parents and siblings, should all be in the same line of descent. Sunrider reserves
the right to position IBOs’ immediate family members in the same sales organization.
The sponsor must insure that a violation of Sunrider’s strict double-sponsoring rules has
not occurred. Double sponsoring does not occur when IBOs seek to sponsor:
1. Former IBOs whose accounts were terminated by Sunrider for inactivity; or
2. Former IBOs whose accounts were voluntarily terminated more than six months
(for Career Title Ace Elite or below) or twelve months (for Career Title Ace Royal or
higher) prior to the new sponsorship.
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Former IBOs who had voluntarily terminated for more than the designated period (six
months for Career Title Ace Elite or below or twelve months for Career Title Ace Royal or
higher) may not recruit or cause their original downline members to voluntarily terminate
for the designated period and then sign up under the former IBO in their new sales
organization as this would be considered to be a violation of these cross organization
activity guidelines.
Recruiting an existing IBO by coercing them to terminate their account, and then having
them (or someone in their family or immediate household) sign up again under the
recruiting IBO will be considered a violation of these cross organization activity guidelines.
Buying and selling existing Independent Businesses or any other actions or transactions
designed to circumvent these cross organization guidelines are strictly prohibited.
A party harmed by an alleged act of cross organization activity/double sponsoring must
notify Sunrider within one year of the commencement of the alleged act. When a claim is
made, Sunrider will conduct an investigation. At the conclusion of the investigation,
Sunrider will determine, in its sole discretion, the appropriate disciplinary actions to
impose, if any, including but not limited to the following:
1. Issue warnings to the sponsored IBO and to their new upline;
2. Place the sponsored IBO on probation;
3. Enforce mandatory repayment of improperly earned commissions to the original
sponsor. The amount of the repayment may be up to one-half of the IBO’s total
commission payout for up to six months;
4. Relocate the sponsored IBO’s newly developed sales organization under the original
sponsor;
5. Suspend the Independent Business for such term as Sunrider deems appropriate;
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6. Terminate the Independent Business; and
7. Any other remedy that, in Sunrider’s sole discretion, serves the underlying purpose
of the policy against double sponsoring.
1.9 Cross-Sponsoring (Conducting Other Businesses)
IBOs shall not engage in cross-sponsoring. Cross-sponsoring occurs when an IBO directly or
indirectly solicits or influences current IBOs and/or their downlines to join, participate in,
sell, purchase, or promote the products or services of a competing business. Competing
businesses include, but are not limited to, single-level direct selling, multi-level direct
selling, network marketing, or franchise businesses.
IBOs who are regularly engaged in the operation of another business, such as a retail
establishment or a professional service, may provide products and/or services to clients
who are IBOs or their downlines only if the contact was initiated by those IBOs.
Cross-sponsoring causes economic harm to Sunrider and its IBOs when IBOs and/or their
downlines are influenced to participate in, join, sell, purchase, or promote a competing
company's products or services. This rule protects each IBO's business from competing
companies.
Conduct by IBOs in violation of these rules against cross-sponsoring constitutes
unwarranted and unreasonable interference with the actual and prospective contractual
relationships between Sunrider and its IBOs. Such conduct will subject IBOs to disciplinary
action in Sunrider's sole discretion, including the possible loss of bonuses and the
suspension or termination of their Independent Business.
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1.10 Operating as a Corporation, Partnership, Trust, or Other Business Entity
An Independent Business may be operated through a corporation, partnership, trust, or
limited liability company, subject to the following requirements:
1. The applicant must submit a completed IBO Agreement and Agreement for Doing
Business in a Form Other Than an Individual to Sunrider’s Business Service
Department;
2. All officers, directors, shareholders, partners, managers, members, trustees,
successor trustees, owners, or other individuals having a legal or beneficial interest
in the Independent Business must agree in writing to be bound by and operate the
Independent Business in full compliance with the Sunrider® Business Guide;
3. The signatures of all officers, partners, and trustees on the IBO Agreement must
be notarized;
4. A copy of the articles of incorporation, articles of organization, or the trust
instrument, together with all amendments, must accompany the IBO Agreement;
5. The corporation, partnership, trust, or limited liability company shall notify
Sunrider’s Business Service Department in writing within ten days of any change in
ownership or management or any amendments that vary the terms of the business
entity. Any change in ownership or management (ie changes in officers, directors,
shareholders, partners, managers, members, trustees, successor trustees, owners,
or other individuals having a legal or beneficial interest in the Independent
Business) shall be subject to the notice and approval provisions applicable to the
sale of an Independent Business set forth below, and the Independent Business
shall file a new IBO Application and Agreement for Doing Business in a Form Other
Than an Individual after receiving written approval to do so from Sunrider. All new
officers, directors, shareholders, partners, managers, members, trustees,
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successor trustees, legal or beneficial owners, and other individuals having a
managerial or supervisory role in the entity shall sign the new IBO Agreement;
6. Regardless of the actual ownership structure of the individual Independent
Business , all correspondence or inquiries with respect to the Independent Business
should be made using the first applicant’s name and identification number; and
7. In order to operate an Independent Business as a trust or transfer an Independent
Business to a trust, all beneficiaries of the trust must be individuals, the trust
instrument must not permit the beneficiaries to assign any beneficial interest in the
trust, and the creator of the trust must be a qualified and authorized IBO at the time
the Independent Business is transferred to the trust.
To insure the integrity of the Sunrider Infinity Compensation Plan, Sunrider may, in its sole
discretion, require an Independent Business operating as a business entity to change or
modify its management or ownership structure to ensure compliance with the terms and
policies of the Sunrider® Business Guide.
The transfer of an Independent Business to a trust or other business entity without the
prior written authorization of Sunrider shall constitute an unauthorized assignment in
violation of the Sunrider® Business Guide, and shall be considered void by Sunrider.
Any violation of the Sunrider® Business Guide by the Independent Business or any of its
officers, directors, shareholders, partners, managers, members, trustees, successor
trustees, legal or beneficial owners, or their employees, agents, or other individuals
working for or on their behalf, will subject the IBOs to disciplinary action, at Sunrider’s sole
discretion, including but not limited to the possible loss of bonuses and the suspension
and/or termination of the Independent Business.
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1.11 Husband and Wife Partnerships
If a husband and wife desire to become IBOs, they must do so as a single Independent
Business. Husbands and wives (i) cannot be sponsored in different lines of descent; (ii)
cannot sponsor each other; and (iii) cannot maintain separate Independent Businesses. If
one spouse is already an IBO and the other spouse desires to become an IBO, the spouse
who wishes to become an IBO must join the other spouse’s existing Independent Business.
Spouses operate their Independent Business as a single entity, whether or not both
spouses’ names appear on the IBO Agreement. Each spouse is accountable for the actions
of the other with respect to compliance with the Sunrider® Business Guide. When both
husband and wife participate in the Independent Business, one spouse’s signature on the
IBO Agreement constitutes a representation that the other spouse has agreed to comply
fully with the terms and conditions of the Sunrider® Business Guide.
If two IBOs decide to marry, one spouse must surrender their Independent Business by sale
or relinquishment and become a partner in their spouse’s Independent Business within
one-hundred eighty days of the marriage. If the sale option is chosen, the sale must be
completed pursuant to the Sale of Independent Business guidelines below, or the
Independent Business will be deemed to be relinquished. If an Independent Business is
relinquished, the Independent Business’s downline will not roll up to the next qualified
upline IBO but will maintain its existing level in the downline. Sunrider reserves the right to
decide all disputes or unresolved issues in its sole discretion, including the determination,
if necessary, of which spouse’s Independent Business will be deemed relinquished.
1.12 Pricing, Ordering, Packaging, Labeling, and Selling
Independent Business Owners are required to sell Sunrider® products to third parties. Price
Cutting is not allowed. IBOs are authorized to set their own retail sales prices; however,
they must adhere to the following rules:
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1. Not sell products below the Sunrider Retail Price.
2. Not sell products at a discounted price below the Sunrider Retail Price to any
customer who is not a Preferred Customer or to IBOs who offer discounted sales to
customers who are not Preferred Customers. Failure to comply will result in a
warning letter from Sunrider and possible suspension or termination.
3. Insure all product orders are placed with Sunrider on designated forms in the
manner that is established by Sunrider. Sunrider may, at its sole discretion, reject
any order placed by an IBO.
4. Not re-package or re-label any Sunrider® product. This helps ensure that our
product labeling remains in compliance with all applicable laws and regulations
regarding packaging and labeling.
5. Not sell or ship Sunrider® product outside of the IBO’s home country.
6. Not sell Sunrider® products to someone in another upline or downline.
Each IBO shall make at least five sales to consumers each month. For purposes of this
provision, a sale means a sale of product to an individual or entity that is not an IBO. When
an IBO makes a sale to a customer that exceeds $25, applicable consumer protection law
entitles the customer to cancel the transaction at any time within three business days from
the date of purchase. IBOs must provide all customers two copies of the Sunrider Customer
Sales Receipt (or another sales receipt which contains all information contained within the
Sunrider Customer Sales Receipt), which contains the necessary language regarding the
purchaser’s cancellation rights. In addition to using a Customer Sales Receipt, IBOs must
also orally inform purchasers of their cancellation rights. IBOs must keep the fully filled out
third copy of the Sunrider Customer Sales Receipt in their records for at least 90 days and
present receipts to Sunrider if requested during an audit.
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In addition, each IBO is required to certify that at least 70% of the total amount of Sunrider®
products acquired during the previous sixty days has been sold to an end consumer (Retail
Customer or Preferred Customer).
Sunrider reserves the right to audit all IBOs to ensure that they are complying with this rule.
When audited, IBOs will be required to produce complete and accurate retail receipts and
sales records to show that product has been sold to end consumers in the IBO’s home
country. Failure to comply with a Sunrider audit or failure to produce complete, accurate,
and honest retail receipts and sales records may result in temporary or permanent
suspension of the IBO’s account.
1.13 Retailing Restrictions
Independent Business Owners must not sell or display, nor permit to be sold or displayed,
Sunrider® products or product literature in any retail store, except a store that is personally
owned and operated by the IBO. The personally owned and operated retail establishment
may sell Sunrider® products if the Sunrider® products are ordered and acquired directly
from Sunrider and are shipped by Sunrider directly to the retail establishment.
IBOs must not sell Sunrider® products or literature in mail order catalogs, at outdoor or flea
markets, on home shopping channels/networks, on Non-Sunrider approved websites, on
Internet stores, on Internet auction sites, through Internet classified ads, or anywhere else
on the Internet. IBOs may sell Sunrider® products or literature using approved Sunrider IBO
Pages pursuant to the Sunrider on the Internet guidelines below. The approved Sunrider
IBO Pages may list Retail Prices for products but must not list discounted prices of Sunrider®
products.
IBOs must comply with all applicable State and Federal laws and regulations regarding
telephone and fax solicitations. IBOs are not authorized to engage in telemarketing
activities. IBOs must not use any form of automatic calling devices, prerecorded or artificial
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voice messages, or blast fax/bulk fax programs in connection with their Independent
Business.
IBOs are not authorized to sell or ship product to customers outside of the IBO’s home
country. And IBO’s account may be audited at any time by Sunrider to ensure compliance
with the rules of the Business Guide, including the limitation of selling within an IBO’s home
country. During an audit, an IBO will be required to provide complete and accurate retail
receipts and sales records to Sunrider to show compliance with these rules.
1.14 Advertising, Intellectual Property, and Proprietary Information
Sunrider’s intellectual property rights, including but not limited to, trademarks,
tradenames, copyrighted materials, logos, distinctive phrases or marks, and the given or
family names and images of Sunrider’s principals (collectively referred to as “Sunrider
Intellectual Property”), wherever they appear and in whatever form, are owned exclusively
by Sunrider or its principals. Use of Sunrider Intellectual Property must comply with the
Sunrider® Business Guide. IBOs may not directly or indirectly use or permit others to use
Sunrider Intellectual Property in any manner that infringes upon the rights of Sunrider. Any
express authorization from Sunrider to use any Sunrider Intellectual Property shall not
constitute a grant of license by Sunrider and does not give IBOs any rights to any Sunrider
Intellectual Property. IBOs shall not acquire any right to any goodwill or Sunrider
Intellectual Property by reason of their relationship with Sunrider or their sale of Sunrider®
products.
Sunrider Proprietary Information includes, but is not limited to, IBO lists (including
downline and upline lists), customer lists, manufacturing procedures, formulas, product
development, marketing techniques, prices and pricing strategies, bonus and incentive
programs, all operating, financial, and marketing materials, and Sunrider Intellectual
Property (collectively referred to as “Sunrider Proprietary Information”). Any Sunrider
Proprietary Information that IBOs have acquired in the course of operating an Independent
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Business is confidential and proprietary to Sunrider, is intended for the exclusive use of
Sunrider and its authorized IBOs, is for the sole purpose of furthering Sunrider’s business,
and may be used or disclosed only in strict accordance with the Sunrider® Business Guide.
Business cards that contain Sunrider Intellectual Property, including the Sunrider IBO logo,
must be reviewed and approved in advance by Sunrider.
IBOs may not create or use Non-Sunrider Produced marketing, promotional, or training
materials that have not been first approved by Sunrider. “Non-Sunrider Produced
Materials” are any promotional or training materials or items (including without limitation
written materials, emails, content in any audio, video, or electronic format, websites, blogs,
or other Internet content in any form) created by IBOs or others and not by Sunrider. If
IBOs wish to use their own Non-Sunrider Produced Materials, they must submit an online
compliance form (found at business.sunrider.com) and receive written authorization from
Sunrider.
When creating Non-Sunrider Produced Materials on the Internet, websites, and blogs, IBOs
must insure that the Non-Sunrider Produced Materials do not duplicate the look and feel
of any Sunrider Website, nor imitate any Sunrider Website in any manner that is misleading
or gives the impression that the IBO website is an official Sunrider Website. IBOs may use
the Sunrider IBO logo on their Non-Sunrider Produced Materials provided that the IBOs
have submitted the Non-Sunrider Produced Materials to Sunrider for review and have
received confirmation that these materials adhere to Sunrider’s current guidelines. IBOs
may not use any Sunrider logos, including modified Sunrider logos or any logos that are
similar to Sunrider logos, other than the Sunrider IBO logo in their Non-Sunrider Produced
Materials, except as stated below. IBOs must submit Non-Sunrider Produced Materials to
Sunrider for review before distributing or publishing these materials, whether or not these
materials contain Sunrider Intellectual Property, to ensure that these materials adhere to
Sunrider’s current guidelines.
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IBOs may not sell, directly or indirectly, Non-Sunrider Produced Materials that contain
Sunrider Intellectual Property. IBOs may sell Non-Sunrider Produced Materials not
containing Sunrider Intellectual Property to anyone except current or prospective IBOs or
Members.
When creating Non-Sunrider Produced Materials, IBOs must:
1. State that they are an “Independent Business Owner” and not state or imply that
they are an employee or agent of Sunrider;
2. Use Sunrider pre-approved formats for business cards, including the Sunrider logo,
which may not be altered or modified in any manner;
3. Not use the Sunrider corporate or manufacturing addresses;
4. Not duplicate, publish, distribute, reproduce, or transmit Sunrider Intellectual
Property in any form or by any means, in whole or in part, without the prior written
consent of Sunrider;
5. Not use Sunrider Intellectual Property as part of their business name, an Internet
domain name, blog address, online profile, avatar, email address, or other online
identity;
6. Not use Sunrider Intellectual Property without the appropriate trademark symbols;
7. Not engage in any advertising that is false, misleading, defamatory, libelous,
disparaging, offensive, threatening, harassing, abusive, obscene, or pornographic,
or that violates any applicable law or regulation, inhibits others from using or
viewing Sunrider Websites, or otherwise portrays Sunrider in a negative light; and
8. Not distort or misrepresent the quality or purpose of Sunrider® products. Sunrider®
products are not intended for use in the diagnosis, cure, mitigation, prevention, or
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treatment of any medical condition and IBOs shall not represent or make any
statement to the contrary.
IBOs should immediately inform Sunrider of any improper use of Sunrider Proprietary
Information. IBOs engaging in unauthorized advertising, marketing, statements, or
representations about Sunrider® products will be subject to disciplinary action at Sunrider’s
sole discretion, including but not limited to loss of bonuses, suspension, and/or termination
of the Independent Business.
For violations of these provisions, Sunrider shall be entitled to monetary relief, recoverable
attorney’s fees, injunctive or other equitable relief, and any and all other legal
remedies. Immediately upon expiration, termination, or cancellation of an Independent
Business, the affected IBO will remove, destroy, discontinue use of, and if requested by
Sunrider, return all Sunrider Proprietary Information to Sunrider.
The provisions of this section of the Sunrider® Business Guide shall survive the termination,
cancellation, or non-renewal of the Independent Business.
1.15 Sunrider on the Internet
The Sunrider corporate website is located at www.sunrider.com. IBOs and guests may click
on the appropriate links on the Sunrider corporate website to receive the latest
information on Sunrider’s various business enterprises, history, publications, awards &
honors, good works, news, products, worldwide offices, and IBO benefits.
The Sunrider Business Center, Sunrider Office, Sunrider University, and iStore (Shop
Online) are designed for IBOs to purchase products and manage and develop their
business. IBOs can enter the Business Center website to view downline activity, obtain
bonus recap statements, view the Sunrider® Business Guide, and change addresses or
telephone numbers. Sunrider also operates websites and blogs on other Internet domain
names, all collectively referred to as “Sunrider Websites.” For further information on
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Sunrider Internet policies and the many benefits of the Sunrider Websites, please contact
the Sunrider Business Service Department.
Sunrider offers IBOs the opportunity to build their own individual websites, called Sunrider
IBO Pages. These Sunrider IBO Pages are designed, hosted, and powered by Sunrider and
are an efficient, cost-effective way to introduce Sunrider to potential IBOs all over the
world. Sunrider authorizes IBOs with Sunrider IBO Pages to directly link to any Sunrider
Website. When purchasing products from the “Shop Online” link on a Sunrider IBO Page,
the amount of products purchased and the corresponding PV amount is automatically
calculated by Sunrider. IBOs must not “frame” a Sunrider IBO Page and must not redirect a
domain name to a Sunrider IBO Page.
Non-Sunrider approved websites include, but are not limited to, IBO’s websites not hosted
by Sunrider, blogs, social media sites, and online profiles. IBOs are authorized to utilize
Non-Sunrider approved websites to promote their Sunrider business and may provide links
from their Non-Sunrider approved websites to their Sunrider IBO Page and the Sunrider
Websites. Non-Sunrider approved websites may reproduce and reference content relating
to Sunrider history, product information, Sunrider news, Sunrider good works, Sunrider
awards, Sunrider photographs of products and facilities, and other company information
found in current Sunrider marketing materials or on non-password protected areas of
official Sunrider Websites, provided that all requirements below are met. Sunrider does not
permit IBOs to sell its products on Non-Sunrider approved websites (including third party
websites such as ebay, Amazon, and the like). All content on Non-Sunrider approved
websites must meet all requirements below.
All Non-Sunrider approved websites must:
1. Not use Sunrider Intellectual Property in any website content that is not clearly
displayed or viewable (including, but not limited to, hidden text, commented text,
or meta tags);
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2. Not have any password and/or user protected areas. All content and sections of a
Non-Sunrider approved website must be visible and accessible to anyone without
requiring user registration or authentication;
3. Insure that discussion forums and other third party comments are moderated and
negative or inappropriate content is deleted from the Non-Sunrider approved
website. IBOs must promptly comply with any requests by Sunrider to delete
negative or inappropriate content from the Non-Sunrider approved website;
4. Not use or link to any other Sunrider-produced multimedia, animations, sounds, or
videos. IBOs who create a Non-Sunrider approved website may use the exact
language, photographs, and graphics contained in Sunrider’s most current
marketing materials that are available to the general public and are not password
protected;
5. Not duplicate the look and feel of any Sunrider Website, nor imitate any Sunrider
Website in any manner that is misleading or gives the impression that the website
is official or otherwise sanctioned by Sunrider;
6. Not “frame” a Sunrider IBO Page or any Sunrider Website;
7. Not disclose complete product ingredient lists;
8. Clearly state that the site is that of an IBO;
9. Not use Sunrider Intellectual Property as part of their business name, an Internet
domain name, blog address, online profile, avatar, email address, or other online
identity;
10. Not use any Sunrider logos, including modified Sunrider logos or any logos that are
similar to Sunrider logos, other than the Sunrider IBO logo, in their Non-Sunrider
Produced Materials;
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11. Promptly comply with any requests by Sunrider regarding search engine positioning
so that Internet search engines list Sunrider’s Websites as the top search results
when an Internet user searches for “Sunrider” or any of Sunrider’s product names
or trademarks;
12. Be submitted to Sunrider for review by completing the online form at
http://business.Sunrider.com/CustService/webcompliance.asp. The IBO will be
notified of the results of the review and any required modifications. Failure to
submit and make requested modifications to Non-Sunrider approved websites
constitutes a violation of the Sunrider® Business Guide; and
13. Continue to comply with the terms of the Sunrider® Business Guide after receipt of
the results of the initial review by Sunrider. Modifications, changes, additions,
and/or updates to the content of approved Non-Sunrider approved websites must
be submitted to Sunrider for review and failure to do so constitutes a violation of
the Sunrider® Business Guide. IBOs may utilize pay for placement listings on online
search engines or directories, including use of Sunrider trademarks or product
names as long as their use does not conflict with the rules above or in this Sunrider®
Business Guide, for their Sunrider IBO Pages and Non-Sunrider approved sites. All
pay for placement listings must comply with the terms of the Sunrider® Business
Guide, must list the IBO’s domain name, and must not use “Sunrider.com” or other
Sunrider domain name. Prior to listing online, the content of all pay for placement
listings must be submitted to Sunrider for review by completing the online form at
http://business.Sunrider.com/CustService/webcompliance.asp. Sunrider actively
monitors Internet search engine results for its trademarks and product names. IBOs
shall not use any improper methods of search engine manipulation (e.g.,
spamdexing) to artificially boost the presence of their website in search engine
results.
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IBOs should report any potential violation of the terms of this section by completing the
online form at http://business.Sunrider.com/CustService/webcompliance.asp.
Sunrider takes no responsibility for the content or information posted on Non-Sunrider
approved websites. Sunrider disclaims any and all liability arising out of or related in any
way to IBO Non-Sunrider approved websites. IBOs will be held responsible for their Internet
marketing activities, including liability for harm caused by these activities.
Sunrider may monitor the Internet and may review previously submitted Non-Sunrider
approved websites to ensure continued compliance with the Sunrider® Business Guide.
Violations of the Internet policies, including but not limited to the policies regarding Non-
Sunrider approved websites, shall subject IBOs to disciplinary action in Sunrider’s sole
discretion, including the possible loss of Bonuses and Benefits and the suspension or
termination of their Independent Business.
1.16 Sunrider Anti-Spam Policy
Sunrider understands the importance of the Internet and allows IBOs to use the Internet
to enhance their business opportunities. However, Sunrider prohibits the transmission,
distribution, or delivery of any unsolicited bulk or commercial email that does not comply
with applicable State and Federal laws and regulations (Spam).
IBOs who send or cause to be sent emails must insure that the email includes their physical
mailing address, must clearly and conspicuously disclose that the email is an advertisement
or solicitation, and must provide a functioning “opt-out” notice that allows the recipient to
refuse future email correspondence. IBOs must honor all opt-out requests within 10
business days of receiving the request.
In addition, IBOs may not send or cause to be sent emails that:
1. Use or contain invalid or forged headers;
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2. Use or contain invalid or non-existent domain names;
3. Employ any techniques to otherwise misrepresent, hide, or obscure any
information in identifying the point of origin or the transmission path;
4. Use deceptive addressing;
5. Use a third party's Internet domain name, or that relay from or through a third
party's equipment without permission of the third party;
6. Contain false or misleading information in the subject line or otherwise contain false
or misleading content; or
7. Violate the Terms of Use posted on Sunrider’s website.
Sunrider reserves the right to determine in its sole discretion what constitutes actionable
Spam. Unauthorized transmission of unsolicited email, including the transmission of email
in violation of this policy, may subject IBOs to disciplinary action at Sunrider's sole
discretion, including possible suspension of Bonuses and Benefits and termination of the
Independent Business. Additionally, such transmissions may result in civil, criminal, or
administrative penalties against the sender and those assisting the sender.
IBOs should report violations of this Anti-Spam Policy immediately to the Sunrider Business
Service Department.
2. DIVISION OF AN INDEPENDENT BUSINESS
If two or more persons operate an Independent Business and wish to divide that
Independent Business, they must submit a proposal for division to Sunrider. Sunrider
reserves the right to approve or reject the division of an Independent Business. Division of
an Independent Business may be sought for several reasons, including but not limited to
divorce, corporate dissolution, or partnership dissolution.
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Any proposed division of an Independent Business must preserve and maintain the
downline organization and the viability and value of the Independent Business. If Sunrider
determines that the proposed division fails to accomplish these goals, Sunrider, at its sole
discretion, may:
1. Deny the request to divide the Independent Business;
2. Remove the parties as sponsors;
3. Require a sale of the Independent Business;
4. Move the sales organization;
5. Terminate the Independent Business; and/or
6. Require any other remedial action to protect the integrity of the downline
organization.
2.1 Division Proposed as a Result of Divorce
The former spouses may agree to continue to operate their Independent Business in the
form of a partnership, corporation, or other entity even though they are no longer married.
A formal written agreement must be entered into between the former spouses and filed
with Sunrider. The filed agreement must fully set forth the respective rights and obligations
of the former spouses and must receive Sunrider’s written approval. In addition, the former
spouses must submit the appropriate application, either an Application for Doing Business
under a Fictitious Name or an Independent Business Owner Application and Agreement for
Doing Business in a Form Other Than an Individual to the Sunrider Business Service
Department.
The former spouses may split their Independent Business into two separate Independent
Businesses, each of which will be sponsored by the original sponsor. Sunrider will assign a
new Independent Business Owner (IBO) number to each of the new Independent
Businesses to avoid confusion with the former Independent Business.
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One former spouse may relinquish all rights in the original Independent Business to the
other former spouse. Once all rights are relinquished and upon Sunrider’s written approval,
the withdrawing spouse may sign up as a new IBO and choose any sponsor for the new
Independent Business.
If the above do not apply, Sunrider will decide at its sole discretion how to resolve the issue
of the division.
2.2 Division Proposed as a Result of Dissolution of Partnerships,
Corporations, and Other Business Entities
The parties may split their Independent Business into two or more separate Independent
Businesses, each of which will be sponsored by the original sponsor. If, following the split,
one of the parties does not retain any downline organization, that party is free to choose
any sponsor for their new Independent Business. Sunrider will assign a new IBO number to
each new Independent Business to avoid confusion with the former Independent Business.
Any of the parties may relinquish all rights in the original Independent Business. Once all
rights are relinquished and upon Sunrider’s written approval, the withdrawing party may
sign up as a new IBO and choose any sponsor for the new Independent Business, provided
that the withdrawal is not made with the intention of circumventing the twelve-month
inactivity rule. (See Duration of Account and Renewal below.)
If the above do not apply, Sunrider will decide at its sole discretion how to resolve the
issue of the division.
If the parties to an Independent Business have decided to request a division but are unable
to agree upon the terms of the proposed division, any party to the Independent Business
may submit the matter to Sunrider for a determination as to how the division should be
effected. After conducting an investigation, Sunrider will submit a proposal to the parties
for their consideration. The proposal shall become final and binding on the parties if no
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objection in writing is made to Sunrider within fifteen days of receipt of the proposal. If one
or more of the parties submits a timely written objection to Sunrider’s proposal and if no
agreement can be reached, Sunrider may at its sole discretion require sale or termination
of the Independent Business.
During the pendency of a proposed division of an Independent Business, the Independent
Business may be operated as follows:
1. As it was prior to the request for a division;
2. In a manner agreed upon by the parties, provided that the parties notify
Sunrider in writing if their agreement would require Sunrider to modify its
records; or
3. In a manner that Sunrider deems necessary in its sole discretion to preserve the
viability and value of the Independent Business.
During the pendency of a proposed division of an Independent Business, the following
rules apply:
1. If Sunrider determines that there is a danger of a loss of viability or value of the
Independent Business due to a conflict between the parties, Sunrider shall have
the right to appoint a temporary receiver of the Independent Business until a
plan for division of the Independent Business is finalized;
2. None of the parties to that Independent Business may become in any way
involved in another Independent Business;
3. No division will be effective until approved in writing by Sunrider; and
4. Once an Independent Business is divided, each new Independent Business must
qualify on its own for all recognition, commissions, bonuses, and incentive
programs.
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3. SALE OF AN INDEPENDENT BUSINESS
IBOs at the Career Title rank of Ace Royal and above who are in good standing with Sunrider
may sell their Independent Business, but not without Sunrider’s prior written approval of
the terms of the sale. Sunrider will consider each proposed sale on a case-by-case basis.
Approval of the sale by Sunrider is based on various criteria, including but not limited to a
review of the proposed purchaser’s qualifications and demonstrable ability to manage and
develop the Independent Business, possible consultation with the selling IBO’s sponsor and
upline, and possible interview of the proposed buyer(s).
Buying and selling existing Independent Businesses as a means of changing sponsors is a
violation of the Double Sponsoring provisions and will not be permitted. Proposed
transactions between existing IBOs will be closely scrutinized by Sunrider.
Sunrider expressly reserves the right to disapprove any proposed sale at its sole
discretion.
Proposed sales are subject to the following requirements:
1. The selling IBO must qualify with at least 800 PV and 10,000 DV for six
consecutive months prior to the proposed sale date;
2. The selling IBO must submit to Sunrider in writing the reasons for the proposed
sale, the terms of the proposed sale, the identity and a detailed description of
the proposed buyer, and a statement that the selling IBO has notified their
upline (up to 5 levels above their own rank and the immediate Ace Royal or
above) about the proposed sale;
3. All correspondence and documentation relating to the proposed sale must be
forwarded to Sunrider for review and verification;
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4. If the proposed buyer is already an IBO, they must be lower in rank than the
selling IBO and must also be in the same line of descent;
5. If an IBO at the rank of Hero or above wishes to sell their Independent Business
to another IBO, the buyer should be at the rank of Ace Royal or above (in the
same line of descent) for six consecutive months prior to the proposed sale
date; please note that the Sunrider may require a higher rank than Ace Royal
from the Buyer based upon the rank of the Seller;
6. If the proposed buyer is not already an IBO, the buyer must have proven sales
and leadership skills that are satisfactory to Sunrider, and the proposed buyer
must submit to Sunrider an IBO Agreement that retains the selling IBO’s sponsor
as the sponsor of the buyer’s Independent Business;
7. The buyer must agree to meet all the requirements found in the Business Guide,
including conducting downline training meetings; and
8. Prior to the sale, the proposed buyer must submit to Sunrider for its approval a
training schedule indicating the date, time, location, type of training, and
downline IBO attendees. This schedule must be submitted to the Business
Service Department.
Once Sunrider has granted preliminary approval for the proposed sale, the selling IBO must
submit the following notarized documents to Sunrider:
1. A contract between all parties;
2. An Independent Business Owner Change Notice Form; and
3. A letter of termination.
A selling IBO may not purchase another Independent Business or sponsor any other IBOs
for a period of twelve months from the date of the sale of the Independent Business. The
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only exception to this rule is a simultaneous buy/sell agreement, which has been fully
reviewed and approved in writing by Sunrider.
No sale of an Independent Business is effective without final written approval from
Sunrider. An attempted sale without Sunrider’s written prior approval shall constitute an
unauthorized assignment in breach of the Sunrider® Business Guide, and shall be voidable
by Sunrider.
4. TRANSFER DUE TO DEATH OR INCAPACITY
Upon the death of an IBO, the Independent Business may inure to the benefit of the IBO’s
lawful successor-in-interest provided that Sunrider receives all relevant documents. The
documents required may vary depending upon the particular circumstances and may
include, but are not limited to, the death certificate, will, trust, proof of entitlement, and/or
a certified copy of a court order setting forth the identity and authority of the successor-
in-interest.
The possible transfer of the Independent Business of an incapacitated IBO will proceed
according to the same rules and procedures that apply to the death of an IBO. An IBO shall
be deemed “incapacitated” if Sunrider receives a certificate signed by two qualified medical
physicians or a certified copy of a court order which indicates that the IBO has been
determined to be incapable of conducting their affairs.
The potential successor-in-interest and all individuals of legal age with a legal or beneficial
interest shall sign a new IBO Agreement within 180 days following the death of the IBO and
agree to comply with and be bound by all terms and conditions of the Sunrider® Business
Guide.
Until the successor-in-interest is determined, Sunrider will continue to issue commissions
and bonuses, if any, in the name of the deceased IBO for up to six months.
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4.1 Spousal Successor-in-Interest
In order to inherit the Independent Business, the surviving spouse of the decedent must
have been actively participating in the Independent Business for at least twelve months
immediately preceding the decedent’s death. Active participation includes, but is not
limited to, attending Sunrider’s annual convention, workshops, applicable training and
events, applicable leadership events, and Sunrider-sponsored meetings in their geographic
area. Certain exceptions may be made in Sunrider’s sole discretion.
4.2 Children Successors-in-Interest
In order to inherit the operation of a deceased parent’s Independent Business, the
child(ren) of the decedent must be at least twenty years old, an active IBO, hold a Career
Title one level lower or higher than the decedent’s Career Title, and have qualified at that
title for at least the last six months prior to decendent’s death.
If the successor-in-interest children are not able to meet the above requirements, Sunrider
may make certain exceptions in its sole discretion.
4.3 Other Successors-in-Interest
If the decedent was at a Career Title of Ace Royal level or above and the successor-in-
interest is someone other than the surviving spouse or children, the transfer of the
Independent Business to a successor-in-interest shall be treated as a sale of the
Independent Business and shall require compliance with all rules relating to the sales of
Independent Businesses set forth in this Business Guide.
4.4 Additional Information
If the potential successor-in-interest does not meet the eligibility criteria set forth above or
if a dispute exists regarding the identity or authority of the lawful successor-in-interest,
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Sunrider will not be obligated to transfer ownership of the Independent Business. Sunrider
reserves the right, in its sole discretion, to determine which of multiple potential
successors-in-interest shall receive the Independent Business.
If Sunrider chooses, in its sole discretion, not to approve an ownership transfer, Sunrider
may allow the successor-in-interest or the legal representative to sell the Independent
Business. Sunrider must be given the first opportunity to purchase the Independent
Business at a reasonable price. Further, Sunrider reserves the right to relocate the
Independent Business to a proven Business Builder.
Operation of an Independent Business following the death of an IBO in contravention of
these rules shall constitute an unauthorized assignment of the Independent Business in
breach of the Sunrider® Business Guide and shall be voidable by Sunrider.
5. AGREEMENT VIOLATIONS, INVESTIGATION, ENFORCEMENT, AND RESOLUTION
PROCEDURES
When IBOs learn of an alleged violation of the Sunrider® Business Guide by another IBO,
IBOs should immediately inform Sunrider in writing of the purported offense. IBOs shall
report the matter to the Business Service Department by sending a letter stating the nature
of the violation, the names, addresses, and telephone numbers of all relevant individuals
and any dates, times, places, or other pertinent details. The reporting IBO must sign the
letter and must ensure that all information in the letter is truthful and accurate to the best
of their knowledge.
IBOs shall cooperate with and provide information and documentation to Sunrider when
requested. The failure to provide information or knowingly supplying inaccurate, false, or
misleading information constitutes grounds for disciplinary action at Sunrider’s sole
discretion, including but not limited to the suspension of bonuses and the possible
termination of the Independent Business.
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Upon learning of any violation of the Sunrider® Business Guide, Sunrider shall conduct an
investigation. Sunrider will send written notification of the alleged violation(s) to the IBO.
The written notification will include the time frame allotted for the IBO to submit their
position in writing along with any accompanying evidence for Sunrider’s review.
At the conclusion of the investigation, Sunrider will determine, in its sole discretion, the
appropriate disciplinary actions to impose, if any. Sunrider will notify the IBO of its decision,
which will become effective on the date the notification is sent.
IBOs who violate any rule in the Sunrider® Business Guide or make any material
misstatement or misrepresentation to Sunrider or any other person in the course of
conducting their Independent Business, may be subject to disciplinary action, in Sunrider’s
sole discretion, including but not limited to any or all of the following:
1. Monetary penalties and other sanctions;
2. Suspension of any bonuses and privileges for a time period that Sunrider deems
appropriate;
3. Termination; and
4. Sunrider’s exercise of any or all other remedies to which it is entitled under law
or in equity
6. SUSPENSION AND TERMINATION
Violation of the Sunrider Code of Ethics, the Sunrider® Business Guide, or any of the written
policies of Sunrider is grounds for suspension and/or termination.
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6.1 Suspension
Sunrider may, at its sole discretion, suspend an IBO pending the outcome of an
investigation of a possible violation of the Sunrider® Business Guide. Sunrider will withhold
any bonuses and payments during the suspension.
If Sunrider determines upon completion of its investigation that the IBO is not in violation
of the Sunrider® Business Guide, the suspension will be lifted and the IBO will be paid the
bonuses and payments that were withheld during the suspension.
If Sunrider determines upon completion of its investigation that the IBO is in violation of
the Sunrider® Business Guide, Sunrider may determine, at its sole discretion, that non-
payment of withheld bonuses and payments or termination is warranted. In the case of
termination, the IBO will not receive the bonuses and payments that were withheld during
the suspension.
6.2 Voluntary Termination
IBOs who desire to terminate their Independent Business may do so at any time upon
written notice to the Sunrider Business Service Department. Career Title Ace Royals and
above who voluntarily terminate their Independent Business agree to refrain from
participating, either directly or indirectly, in another Independent Business for a period of
twelve months from the date that Sunrider receives notice of the termination. All IBOs who
voluntarily terminate understand that further usage of Sunrider Proprietary Information,
including but not limited to customer lists, IBO lists, and the like is a violation of these
provisions, and that Sunrider shall be entitled to monetary relief, recoverable attorney’s
fees, injunctive or other equitable relief, and any and all other legal remedies.
6.3 Involuntary Termination and Sanctions
Sunrider may terminate an Independent Business for cause. For purposes of this provision,
“for cause” means any violation of the Sunrider Code of Ethics, the Sunrider® Business
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Guide, any of the written policies of Sunrider, or for allowing an Independent Business to
become inactive.
Instead of termination for cause, Sunrider may, in its sole discretion, suspend an
Independent Business or take any other disciplinary action that Sunrider deems
appropriate and necessary.
6.4 Rules Applying to All Terminations
Terminated IBOs lose all prior rights to rank and eligibility for bonuses. Terminated IBOs
are not entitled to any compensation for goodwill.
After an Independent Business terminates, Sunrider will hold bonuses for a period of up
to six months to resolve all accounting and upline qualification issues.
Subject to any limitations imposed under local laws and regulations, Sunrider agrees to
repurchase products and sales aids (Inventory) in currently marketable condition, in
accordance with all of the following provisions:
1. Inventory must have been purchased directly from Sunrider and must be
returned within twelve months of the original purchase date;
2. IBOs are responsible for all shipping expenses in returning the Inventory to
Sunrider;
3. The returned Inventory must be accompanied by a letter clearly marked “Return
of Unsold Inventory/Termination,” stating that the Independent Business has
been terminated and that the IBO will not initiate or otherwise participate,
either directly or indirectly, in another Independent Business for at least twelve
months from the date of termination or the date Sunrider receives the “Return
of Unsold Inventory/Termination” letter, whichever is later;
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4. Sunrider will pay 90% of the net cost for the Inventory returned, except that
Sunrider shall have the right to effect a set-off for amounts owed by the IBO to
Sunrider, including any legal or equitable adjustments arising from claims
Sunrider may have against the IBO. Net cost means the price actually paid to
Sunrider for the Inventory (excluding sales tax, shipping, and handling charges)
less any consideration/discounts (e.g. bonuses) the IBO received in connection
with the purchase of the Inventory. Sunrider may require proof of purchase
before repurchasing Inventory;
5. Inventory shall not be considered “currently marketable” if it is not returned in
its original, unopened packaging, is returned after the commercially reasonable,
resalable, useable, or shelf-life period has expired, or if Sunrider disclosed prior
to purchase that the Inventory comprised seasonal, discontinued, or special
promotion items not subject to repurchase;
6. Sunrider reserves the right to inspect all Inventory returned pursuant to this
policy to determine if all of the above conditions have been met;
7. With respect to returned Inventory, Sunrider reserves the right to deduct
bonuses from the terminated IBO and the upline of the terminated IBO that
were paid on the purchase of the Inventory; and
8. If an IBO has previously certified incorrectly or falsely that seventy percent of
the Inventory was sold, used, or consumed, the repurchase by Sunrider shall be
limited to that quantity of Inventory that the terminated IBO previously certified
to be correct and truthful.
There is no roll up or compression when an IBO is terminated for any reason. The
terminated IBO’s position will continue to be counted as a level for the terminated IBO’s
upline in perpetuity.
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7. DURATION OF ACCOUNT AND RENEWAL
Unless terminated by the account holder or Sunrider, all active IBO accounts are limited to
a term of twelve months and will be automatically renewed every twelve months
thereafter. Upon renewal, each account will be charged the applicable $59 renewal fee to
the credit card on file with Sunrider at that time or any account credit. If the annual renewal
fee is not paid in a timely manner, the IBO account will be terminated and the IBO will
become a Retail Customer.
Preferred Customer accounts will be renewed every twelve months upon the payment of
the annual $19.95 renewal fee. If the annual renewal fee is not paid in a timely manner,
the Preferred Customer account will be changed to a Retail Customer account.
8. EXCUSE OF NONPERFORMANCE
Sunrider shall not be responsible for delays and failures in performance due to
circumstances beyond Sunrider’s control, including without limitation, strikes (actual or
threatened), labor difficulties, riots, earthquakes, acts of God, civil disturbances or
disorder, wars, disasters, fires, deaths, curtailment of Sunrider’s usual sources of supplies
and raw materials, terrorists acts (actual or threatened), acts of foreign enemies,
curtailment of transportation services, decrees, orders, or other governmental actions, or
a similar intervening cause beyond the control of Sunrider making it illegal, impossible, or
commercially impracticable for Sunrider to perform its duties and obligations outlined in
the Sunrider® Business Guide.
9. ASSIGNMENT AND DELEGATION
IBOs acknowledge that the Sunrider® Business Guide constitutes a personal contract with
Sunrider. IBOs may not, by operation of law or otherwise, assign their rights or delegate
their performance without Sunrider’s prior written consent. Any attempted assignment or
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61
delegation without Sunrider’s consent shall be voidable by Sunrider. Sunrider shall decide
whether to consent to any attempted assignment or delegation in its sole discretion.
Sunrider may withhold its consent to assignment until the IBO executes a separate
agreement, including personal guarantees, as Sunrider may deem necessary to protect the
proprietary information, rights, and interests of Sunrider as well as the assignee and/or
other IBOs.
Sunrider may assign or delegate any of its rights and duties under the Sunrider® Business
Guide without the prior written consent of any IBOs. However, before doing so Sunrider
will attempt to obtain reasonable assurances from the assignee or delegatee that they will
satisfactorily perform Sunrider’s duties and obligations as set forth in the Sunrider®
Business Guide.
10. NOTICE OF AMENDMENT
Sunrider reserves the right to adopt, amend, modify, supplement, or rescind any or part of
the terms and conditions of the Sunrider® Business Guide as Sunrider, in its sole discretion,
deems necessary or appropriate, or as may be required by law. Sunrider shall notify all
active accounts of changes made to the Sunrider® Business Guide by announcements in
Sunrider publications, email, and/or postings on Sunrider’s websites. However, it is the
obligation of IBOs to request and obtain any updates or revisions to the Sunrider® Business
Guide. Changes to the Sunrider® Business Guide shall be deemed effective and binding on
IBOs at the time Sunrider mails, emails, or posts on Sunrider’s websites notice of the
changes.
11. LIMITED WARRANTY
Sunrider warrants to the original purchaser that Sunrider products will be free from defects
for a period of fourteen calendar days from the date purchased. This warranty does not
extend to any Sunrider® products that have been used contrary to Sunrider instructions,
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62
stored improperly, or subjected to neglect, misuse, accident, or modification by anyone
other than Sunrider. This warranty is effective only if a written claim notice is properly
submitted to and timely received by Sunrider. Sunrider may, at its sole discretion, exchange
any defective product or refund the purchase price in accordance with the Return of
Product provisions set forth herein. The remedy of exchange or refund provided for herein
shall be the sole and exclusive remedy in the event of a claimed breach of warranty.
12. DISCLAIMER OF WARRANTIES AND LIMITATION OF LIABILITY
The above warranty is the only warranty provided by Sunrider. There are no other
warranties, express or implied, including any implied warranty of merchantability or fitness
for a particular purpose applicable to Sunrider® products. The sole and exclusive remedy of
exchange or refund is given and accepted in lieu of any obligation, liability, right, claim, or
remedy in statute, contract, tort, or strict liability against Sunrider or its related companies,
or their respective officers, directors, stockholders, members, partners, agents, or
employees, whether or not arising from the negligence, actual or imputed, of Sunrider or
its related companies, or their respective officers, directors, stockholders, members,
partners, agents, or employees. In no event will Sunrider be liable for any incidental,
special, indirect, consequential, punitive, or exemplary damages arising from any defect in
any Sunrider® product, or the use, misuse, or inability to use any Sunrider® product.
13. INFRINGEMENT
Sunrider expressly disclaims any warranty, express or implied, of non-infringement of any
third party’s intellectual property rights, including without limitation patents, trademarks,
tradenames, and copyrights. If IBOs are sued by a third party claiming infringement of any
third party’s intellectual property rights, Sunrider shall be under no obligation to indemnify
or hold the IBOs harmless on account of the alleged infringement.
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14. INDEMNITY
Sunrider may be subject to claims by third parties resulting from IBOs’ failure to comply
with the terms and conditions of the Sunrider® Business Guide. IBOs therefore agree to
indemnify, defend, and hold Sunrider and its related companies, and their respective
officers, directors, stockholders, members, partners, agents, and employees (Indemnitees)
harmless from any claim, demand, liability, loss, damages, cost, or expense (including
without limitation actual attorneys’ fees and disbursements) arising out of or related to
IBOs’ breach of any term or condition of the Sunrider® Business Guide. Such obligation shall
not negate, abridge, or otherwise reduce any other right or obligation of indemnity that
would otherwise exist in favor of any of the Indemnitees against IBOs.
15. INTEGRATION
The Sunrider® Business Guide constitutes the entire understanding of the parties pertaining
to the subject matter thereof, including the IBO’s business relationship with Sunrider and
the terms and conditions related to the IBO’s right to sell Sunrider® products and receive
bonuses and benefits under Sunrider’s compensation plan. Should any inconsistencies arise
between the terms of the IBO Agreement and the Sunrider® Business Guide, all of the terms
and conditions of the Sunrider® Business Guide shall be controlling.
16. WAIVER
The failure of Sunrider to exercise any rights set forth in the Sunrider® Business Guide or to
insist upon strict compliance with any provision hereunder shall not constitute a waiver of
Sunrider’s right to demand full compliance with the Sunrider® Business Guide. An express
waiver by Sunrider or an IBO can only be accomplished formally, in writing, by an
authorized officer of Sunrider or the IBO, and shall be limited in application to the particular
circumstances of the waiver instrument.
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17. SEVERABILITY
In the event that any part, article, paragraph, sentence, or clause of the Sunrider® Business
Guide shall be held to be indefinite, invalid, or otherwise unenforceable, then that part,
article, paragraph, sentence, or clause shall be deemed automatically adjusted to the
minimum extent necessary to conform to the requirements for validity, and, as adjusted,
shall be deemed a provision of this Agreement as though originally included herein. If the
invalidated provision cannot be adjusted to conform to the requirements for validity, the
entire Sunrider® Business Guide shall not fail on account thereof and the balance of the
Sunrider® Business Guide shall continue in full force and effect.
18. CIRCUMVENTION OF POLICIES
The integrity of the Sunrider Infinity Compensation Plan is of vital importance to the
Company. If Sunrider determines in its sole discretion that an IBO’s action was taken in an
effort to circumvent compliance with any provisions of the Sunrider® Business Guide, the
action taken by the IBO shall be null and void. IBOs may not use false names, false
identification, false IBO accounts, buy additional product for the sole purpose of
maintaining a specific rank, warehouse products, or use any other form of manipulation
that violates the terms, conditions, spirit, and intent of the compensation plan. To ensure
compliance with the Sunrider® Business Guide, Sunrider may, in its sole discretion, impose
sanctions against offending IBOs, including without limitation the termination of the
Independent Business.
19. DISPUTE RESOLUTION AND ARBITRATION
PLEASE READ THIS SECTION CAREFULLY. IT MAY SIGNIFICANTLY ALTER YOUR RIGHTS,
INCLUDING YOUR RIGHT TO FILE A LAWSUIT IN COURT. Sunrider and Independent
Business Owners (“IBOs”) agree that should any dispute, claim, or controversy arise out of
the Sunrider Business Guide, Code of Ethics, or Independent Business Owner Application
and Agreement, or in any way relate to the relationship between the IBO and Sunrider, its
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officers, directors, agents, employees, other IBOs, or distribution or use and consumption
of Sunrider products, the dispute shall be submitted to binding arbitration rather than
being resolved in court. This provision applies to all disputes, claims or controversies
whether based in contract, tort, statute, regulation, ordinance, fraud, misrepresentation,
or any other legal or equitable theory. You understand that there is no judge or jury in
arbitration, and court review of an arbitration award is limited.
A. CLASS ACTION WAIVER
Neither Sunrider nor any IBO shall be entitled to join or consolidate disputes by or
against other individuals or entities, including as a member of a class, in
connection with a dispute. To the maximum extent permitted by applicable law,
neither Sunrider nor any IBO may arbitrate any dispute in a representative
capacity, including, without limitation, as a private attorney general. Further,
unless both Sunrider and IBO agree, the arbitrator may not consolidate more than
one person’s claim.
B. AAA Commercial Arbitration Rules and Mediation Procedures
Arbitration will be conducted in accordance with the American Arbitration
Association’s (AAA) Commercial Arbitration Rules and Mediation Procedures.
C. How To Initiate Arbitration
1. The party demanding arbitration (hereinafter referred to as “Claimant”)
shall serve upon the opposing party a written demand for arbitration. The
written demand shall contain a concise statement regarding the nature of
the dispute to be arbitrated, the remedy sought and the factual basis for
the requested relief, and a list of 5 (five) proposed arbitrators.
Any demand for arbitration shall occur within 2 years of the dispute, but in
no event after the date in which the initiation of legal proceedings would
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otherwise have been barred under the applicable statute of limitations.
The failure to timely demand arbitration shall bar all claims.
D. Case Administration and Scheduling
Unless the parties can otherwise agree, the arbitrator shall have all authority to
dictate scheduling and case administration including discovery cut off dates,
hearing dates, the granting of continuances and other matters necessary to insure
a uniform and fair process for the preparation and presentation of evidence at the
hearing.
E. Discovery
The parties hereby adopt and incorporate by reference herein, Section 1283.05 of
the California Code of Civil Procedure, which permits all methods of discovery as if
this matter were pending before a California Superior Court,
F. Venue of Arbitration Proceedings
All arbitration proceedings shall take place in Los Angeles County, California. If
any court or arbitrator determines that the class action waiver set forth in this
section is void and unenforceable for any reason, then the dispute will not be
subject to arbitration and, other than small claims actions, must be brought in the
appropriate federal or state court in Los Angeles County, California. Claims
brought in state court may be removed to federal court if removal jurisdiction
exists. Both Sunrider and IBO consent to venue and personal jurisdiction in Los
Angeles County, California. Both Sunrider and IBO waive their right to a jury trial.
G. Arbitrator Fees and Costs
All costs including the fees of the arbitrator shall be paid equally by the parties
and not taxed as cost or otherwise included as part of any award.
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H. Decision of Arbitrator
Any decision or award by the arbitrator shall be final and binding on the parties.
Unless otherwise agreed, any decision or award shall set forth the factual and
legal basis for the award. The arbitrator shall be permitted to award only those
remedies in law or equity, which are requested by the parties and which the
arbitrator determines is supported by credible relevant evidence. The arbitrator’s
decision or award shall be final and binding.
I. Enforcement of Award
Any decision or award may be enforced as a final judgment by any court of
competent jurisdiction. If either party unsuccessfully challenges the validity of the
award, the unsuccessful party shall pay the opposing party’s costs and attorney
fees associated with the challenge.
J. Choice of Law
The Arbitration Agreement, along with the Sunrider Business Guide, will be
governed by the laws of the State of California, without giving effect to its conflicts
of law principles.
K. Severability
In the event that any portion of the Arbitration Agreement and/or Sunrider
Arbitration Rules, other than the Class Action Waiver, should be held indefinite,
invalid or otherwise unenforceable, the entire Arbitration Agreement and Sunrider
Arbitration Rules shall not fail on account thereof and the balance of the
Arbitration Agreement and Sunrider Arbitration Rules shall continue in full. If,
however, the Class Action Waiver is held to be unenforceable, then the entire
Arbitration Agreement shall become null and void.
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L. Ability to Change Terms and Conditions Inapplicable
While Sunrider may revise certain terms and condition in the IBO Agreement in its
discretion, as specified therein, neither Sunrider nor any IBO shall have the right to
alter this agreement to arbitrate or the rules specified herein.
20. RESTRICTION OF PERIOD OF LIMITATION OF ACTION
No legal action or proceeding, regardless of form, arising out of or relating to the Sunrider®
Business Guide, the Sunrider Code of Ethics, or any of Sunrider’s written policies, the use
or consumption of Sunrider® Products, or the relationship between IBOs and Sunrider or its
related companies, or their respective officers, directors, stockholders, members, partners,
agents, or employees, or other IBOs, may be brought by IBOs or Sunrider more than two
years after the cause of action has accrued but in no case beyond the applicable Statute of
Limitations for that action, whichever is shorter.
21. MISCELLANEOUS
The titles, subtitles, captions, and headings in the Sunrider® Business Guide are for
convenience of reference only, and shall not affect the meaning, interpretation, or
construction of any of the terms, provisions, covenants, or conditions of the Sunrider®
Business Guide.
The language in all parts of the Sunrider® Business Guide shall be in all cases construed
simply according to its fair meaning and not strictly for or against IBOs or Sunrider.
The original text of the Sunrider® Business Guide is in English and any interpretation of it
will be based on the original English text. In the event of a conflict between different
translations of the Sunrider® Business Guide or any documents or notices related thereto,
the original English version will prevail.
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If any provision of the Sunrider® Business Guide is capable of two constructions, one that
would render the provision void and the other that would render the provision valid, then
the provision shall have the meaning that renders it valid.
Nothing contained in the Sunrider® Business Guide shall be construed as requiring the
commission of any act contrary to law. When there is a conflict between a provision of the
Sunrider® Business Guide and a present or future statute, ordinance, or regulation, the
latter shall prevail, but the provision of the Sunrider® Business Guide thus affected shall be
curtailed and limited only to the extent necessary to bring it within the legal requirements.
If a court of competent jurisdiction deems any provision (other than for the payment of
money) unreasonable and the court requires a reasonable modification be made to the
provision, the Sunrider® Business Guide shall continue to be valid and the parties to the
proceedings shall be bound and obligated to perform under the contract as modified.
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SUNRIDER BUSINESS GUIDE
SECTION 3: GENERAL OPERATING PROCEDURES
1. Independent Business Owner Agreement
The applicant for an Independent Business must provide a valid tax identification number,
which Sunrider will keep confidential. Generally, Independent Business Owners (IBOs)
cannot share the same address with other IBOs, Retail Customers, or Preferred Customers,
but Sunrider may approve special exceptions on an individual basis.
Applicants are given the opportunity to review the most current version of the Sunrider®
Business Guide and to read the IBO Agreement. If the applicant agrees to the terms and
conditions, they must complete and submit the IBO Agreement.
Sunrider generally emails acceptance letters immediately after Sunrider’s receipt of the IBO
Agreement.
2. Sunrider Forms
The following guidelines apply to all forms submitted to Sunrider.
1. IBOs, and their sponsor if appropriate, must review all forms before submitting
them to Sunrider to insure that they have been completed fully and accurately.
Sunrider will not process incomplete or inaccurate forms.
2. If filling out an application by hand, IBOs should write clearly and legibly in black or
blue ink. Illegible forms will not be processed.
3. For hard copy forms, IBOs should sign, initial, and date the front and back of all
forms where appropriate before submitting them to Sunrider.
4. IBOs should mail completed hard copy forms to:
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Sunrider International
1625 Abalone Avenue
Torrance, CA. 90501
5. IBOs should fax completed hard copy forms to Sunrider at (310) 222-9271 or (310)
222-9272. IBOs are responsible for confirming Sunrider’s receipt of all forms sent
by facsimile.
6. IBOs may also submit forms on the Internet at www.sunrider.com.
3. ORDERING PRODUCT
Prior to ordering products, IBOs should have the following information available:
Independent Business Owner ID number and name, ship to address, choice of shipping via
ground or air, telephone number, method of payment, and list of products.
Products may be ordered online, by telephone, facsimile, mail, or in person.
1. To place an online order, IBOs can proceed directly to https://buy.sunrider.com and
follow the online order instructions. The online store may also be reached through
the main Sunrider site at www.sunrider.com by clicking on “shop online.”
2. To place an order by telephone, please call Sunrider at (310) 222-6363.
3. To place an order by facsimile, send the completed order form to (310) 222-9271
or (310) 222-9272.
4. To place an order by mail, send the completed order form and the payment to
Sunrider International, 1625 Abalone Avenue, Torrance, CA 90501, Attn: Order
Department. Sunrider is not responsible for orders lost or delayed in the mail.
5. To place an order in person (will-call), come to the Sunrider Business Center during
regular business hours. Complete the order along with full payment on the Sunrider
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website (computers are available at the Sunrider Business Center). A $3.00 Service
Fee will be charged on each will-call order that does not contain a Starter Pack.
In order to qualify for CV and QV credit in a given month, orders must be placed with
Sunrider no later than the last day of the calendar month. Mail orders must be received by
Sunrider no later than the last business day of the month.
3.1 Back Orders
Back order status means the product will be shipped within seven working days. Sunrider
will immediately ship all of the ordered items that are currently in the warehouse.
Additional shipments containing back-ordered items will follow as they become available.
If an order contains items that are on back order, Sunrider will credit the IBO with the
appropriate CV and QV at the time the order is placed.
IBOs must contact Sunrider to request the cancellation of a back order. If a replacement
order is not made, the canceled back order may result in a missed qualification.
3.2 Temporarily Out of Stock
Temporarily out of stock means the item will not be in the warehouse for more than seven
working days. If Sunrider receives a mail or fax order for temporarily out of stock
merchandise, Sunrider will attempt to contact the purchaser within 48 hours by phone to
offer the option of buying other merchandise.
If an order includes items that are temporarily out of stock, the IBO will not receive CV or
QV credit for that portion of the order at the time of order. CV and QV will be credited at
the time the items ship.
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3.3 Record of Invoices
An invoice is included with each shipment. If the order is drop-shipped, the recipient will
receive one copy of the invoice without prices and the IBO will receive one copy of the
invoice with prices. IBOs should keep their invoices for tax and business purposes.
4. PAYMENTS
Payments should be made for the full amount of the order, including applicable sales tax
and shipping and handling charges. Sunrider does not accept C.O.D. orders.
Sunrider ships all orders immediately after receipt of payment. Sunrider may process
orders received without full payment at its sole discretion. If Sunrider processes the order,
Sunrider will, at its sole discretion, delete items not covered by the incomplete payment.
4.1 Cashier’s Check/Money Order/Personal Check/Bank
Draft/TeleCheck
Sunrider accepts cashier’s checks, money orders, personal checks, bank drafts, and
TeleCheck made payable to Sunrider International. There is a $1,000 limit on personal
checks per order. Sunrider will accept pre-printed personal checks only when the name on
the checking account matches the name on the Sunrider account.
TeleCheck allows Sunrider to use information from your check to make a one-time
electronic fund transfer from your account or to process the payment as a check
transaction. Funds may be withdrawn from your account as soon as the same day we
receive your payment, and you will not receive your check back from your financial
institution.
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4.2 Returned Checks/Bank Drafts
Sunrider will automatically deduct a $20 processing fee from the IBO’s account whenever
a check or bank draft is returned unpaid to Sunrider.
If a check or bank draft is returned unpaid to Sunrider, Sunrider will not accept payments
by check or bank draft from that purchaser for a period of six months.
Sunrider will only accept payment by cashier’s check, money order, or credit card to resolve
a returned check or bank draft.
Sunrider may, at its sole discretion, deduct any uncollected amounts from future rebates,
commissions, or bonuses.
Failure to promptly resolve a returned check or bank draft is grounds for termination and
may subject IBOs to legal action.
4.3 Credit Cards/PayPal
Sunrider accepts payments through PayPal, Discover Card, MasterCard, VISA, and American
Express. Only IBOs who are authorized signatories on the relevant accounts may place
orders using that account. Sunrider will not accept orders from IBOs who attempt to use
another person’s account.
Sunrider will verify all payments with an authorization company prior to processing. In the
event the authorization company refuses to authorize full payment, Sunrider will inform
the IBO of the unprocessed order.
4.4 Cash
Sunrider accepts cash payment only if orders are paid for in person. Do not mail cash.
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5. SHIPPING
Orders are primarily shipped by common carrier.
A complete street address with a current phone number is necessary to ensure prompt
delivery. Sunrider will assess a 10% processing fee for all undeliverable or refused
shipments. Sunrider will assess a fee for redirected orders depending on the amount
charged by the shipper to redirect the order.
Sunrider will make every effort to ensure prompt delivery but cannot be held responsible
for delayed shipments.
For shipping inquiries or lost orders, please contact the Business Service Department.
6. RETURN OF PRODUCTS
To process a return, the IBO, Retail Customer, or Preferred Customer’s name and address
should be printed clearly on the return carton. The return carton must include the following
items:
1. A completed product return form;
2. All products and containers in question;
3. A copy of the invoice or the invoice number; and
If the returned products were purchased by a consumer who is not an IBO, the return
carton must also include the following items:
1. A signed receipt with the name, address, and daytime telephone number of both
the purchaser and selling IBO; and
2. The purchaser’s signed statement indicating their reason(s) for returning the
product.
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If an IBO, Retail Customer, or Preferred Customer fails to comply with the requirements
stated herein, or if an IBO fails to honor a legitimate refund request by a first time
purchaser, Sunrider will deduct a 10% processing fee from the reimbursement to that IBO,
Retail Customer, or Preferred Customer.
Sunrider will reimburse postage on qualified returns as long as returns include a copy of
the postal receipt. Sunrider literature, marketing materials, and promotional items are not
refundable.
6.1 14-Day Return Policies
1. First Time Purchase Policy
The First Time Purchase 14-Day Return Policy is applicable only to first time
product purchases when the purchaser is not an IBO.
If the first time purchaser bought products directly from Sunrider, the purchaser
has 14 days from the date of receipt to return the products. If the first time
purchaser bought the products from an IBO, the purchaser must return the unused
portion of the products to the selling IBO within 14 days of purchase. Failure to
comply with the 14-day requirement will result in denial of the claim. The selling
IBO will take full responsibility for processing the return and refunding the purchase
price.
IBOs who issue a refund to a first time purchaser after the 14-day Return period and
then return the products to Sunrider after the 60-day original purchase period
described below will not be entitled to any refund, reimbursement, or replacement
from Sunrider.
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2. Damaged/Defective Product Return Policy
Damaged or defective products must be returned within 14 days of receipt. Failure
to comply with the 14-day requirement will result in denial of the claim. When
returning damaged or defective products to Sunrider, the customer, Preferred
Customer, or IBO making the return must include the Shipping Discrepancy or
Damage Claim Form, packing materials, copies of shipping documents, and a copy
of the invoice. The person making the return may request either replacement of the
same products or a product credit.
6.2 60-Day Return Policy
Customers, Preferred Customers, and IBOs must submit product returns for non-damaged
and unopened products within 60 days of original purchase from Sunrider for reasons other
than damaged or defective products. Sunrider is under no obligation to process a return or
provide a refund for any product returned after this 60-day period.
Sunrider will reimburse the Customers, Preferred Customers, and IBOs for the purchase
price of the products minus any applicable processing and research fees.
Any bonuses paid to IBOs based on the original purchase of returned products will be
deducted from the reimbursed amount. Sunrider has sole discretion to subject IBOs to
monetary, CV, and QV deductions on returned products. Upline IBOs may be subject to
monetary, CV, and QV deductions based on bonuses previously paid by Sunrider on the
returned purchases.
6.3 Extra Product Returns
In the event that Sunrider inadvertently ships products that were not included in a product
order, Customer, Preferred Customers, and IBOs who choose to keep the extra products
must provide full payment for the extra products to Sunrider. Those who choose not to
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keep the extra products should return them as soon as possible to Sunrider with a
completed Shipping Discrepancy or Damage Claim Form and a copy of the invoice.
7. SALES VOLUME TRANSFER POLICY
IBOs may not transfer money and/or sales volume (CV and QV) to other IBOs.
8. ACCOUNT CHANGES
IBOs agree to keep current all contact information (address, telephone number, email
address, etc.) on file with Sunrider. Any notices sent pursuant to any provision of the
Sunrider® Business Guide will be sent to the address on file with Sunrider. Any information
sent to the address on file is conclusively presumed to be adequate notice. All requests for
changes to a Sunrider account must be submitted to Sunrider in writing.
8.1 The Independent Business Owner Change Notice Form
The Independent Business Owner Change Notice Form may be used to make account
changes. The “Old Independent Business Owner Information” section of the form should
contain all the information concerning the IBO prior to any requested changes. The
“Revised Independent Business Owner Information” section of the form should contain
only the information that is being revised. The effective date should be included.
8.2 Change of Address or Name
IBOs who want to change the address on their Sunrider account may mail, fax, email, or
submit online to Sunrider their address change request with the old and new addresses,
their ID number, and their signature. If the address change request is submitted by mail or
fax, IBOs may use the Independent Business Owner Change Notice Form. If the address
change request is submitted by email, the email address on the request must match the
email address on file with Sunrider for that Business. When there is more than one person
on the Sunrider account, Sunrider will not process the address change request until a copy
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is mailed or faxed to Sunrider with the signatures of all parties on the account. IBOs cannot
have the same address as another IBO, Retail Customer, or Preferred Customer.
IBOs who want to request a name change are required to provide to Sunrider a photocopy
of their social security card showing their new name, an original W9 form and a letter
signed by all of the parties involved requesting the name change.
IBOs who want to add a co-applicant, including a spouse or immediate family member, to
a Sunrider account must submit an IBO Agreement for Co-Applicants form with the
signatures of both the IBO and person being added to the account.
IBOs who want to delete an applicant or co-applicant from a Sunrider account must provide
a notarized letter requesting the deletion signed by all of the parties involved.
Sunrider reserves the right, in its sole discretion, to approve or disapprove additions and
deletions to applicant and co-applicant names on an Independent Business. Sunrider may
request additional information, such as the reason for the change, in order to prevent
circumvention of the policies and procedures of the Sunrider® Business Guide.
Sunrider may consider the “Sale of an Independent Business” guidelines when deciding
whether to allow additions and deletions to the applicant name on an Independent
Business.
9. REQUESTING REPORTS AND LABELS
IBOs may access the Account Management and Activity Management page on Sunrider’s
Business Center to monitor downline activity. Also on the Account Management and
Activity Management page, IBOs can create downline mailing labels, sort their downline by
ID, or name, and obtain email addresses of their downline organization.
IBOs at the rank of Ace Royal and above may request that Sunrider generate certain reports
and/or mailing labels regarding their downline.
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9.1 Upline Mail Authorization Form
Heroes and above who wish to unblock their downline from their upline’s mailing label lists
should submit a written request. If there is a co-applicant on the Sunrider account, the co-
applicant must also sign the request.
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