BunuNGYoun

METITEUCABUSTNESS

Supplement al inf o rmation

to help youbuild and understand

1, o ur Melaleuc a bu sine s s.

Thankyou foryou interest in our Customer Referral Program.

Each and every month Melaleuca mails thousands of cheques to MarketingExecutives who share their love for our products with others and benefitfrom our unique Customer Referral Program. The amount written onthe cheques we send varies. Many receive cheques for small amounts ofmoney who have referred one or two customers, but some cheques are

for substantial amounts of money and dramatically enhance the financialwellness of the recipients. Our program continues to enhance lives, and ourdesire is that your work will help you find the reward you seek.

AII the information you need to build a Melaleuca business is here andit's easy to follow. All you have to bring is your time, your effoft, yourcommitment, and your willingness to learn. Congranrladons on yourdecision to begin your Melaleuca business.

Th e Mel.ale ur a Te am, Malays i a

MELALEUCAS MISSION STNTEMENT

Enhancing the lives of those we touch by helping people reachtheir goals.t'

,rOF: CONTENTS

IJ OFCoNTENTS

Geai[g Started -..........7

ihd seven,Critical Business-Building Activities. ...............................8

TABIE OF CONTENTS

Perhapsyouwantto earn

ot eem enough

" I fell in love with the Classic ToothPolish andTough &tnder, andIfound I couldnt live withoutTheVitality Pack. I loved the products

so much, I began to tell people aboutthem. My ftrst cheque was just $zus,

then $8us, then $z4us, and then I paidfor myproduct orderwith my cheque

from Melaleuca. I spent three years

using my Melaleuca business to payfor my products. However, as I told

more friends, my cheques grew and Irealized this was really a great business.

Melaleuca has given me the abilityto be there for my children and help

them pay for college."

Barbam Rae, Executive Dirednr lII,Oregon,US

"I have been with Melaleuca for 14

I enrolled as acusro-"rrorffiproducts. I decided everyone needed

to hear about these products, so Istarted telling everybody about them.

I tried to enroll four people or moreevery month. Melaleuca has afforded

me such a wonderfirl financia-l

oppornrnity-over the past 14 years

Melaleuca has sent me over $zoo,ooous.

$roous a month does not sound like alot, but that's $r,zoott a year that is not

coming out of the budget"

Debbie Denning Director Iy,Georgid"US

Hovr \(/ourD YoU LIKETO PNNTTCIPATE?

enough to pay for your Melaleuca prlducts, m6l<N the car or house pajlrnent,

to get out of debt.Whatever your godl,Melaleucahas the answer.

Howmuch moneywouldyou like to make with aMelaleucabusiness? Howmuchdesire do you have to get out ofdebt, pay offyour mortgage, or help send your childrento college? Do you have an enduring entrepreneurial spirit, or are you someone whowould just like to eam a litde money on the side?

Categioryr

Prefened Customer

' I prefer naturally based products and want to make my home safer for my family andchildren

.I wantto improve my health andwellness

' I may refer a customer from time to time, but my primary interest is just being a

HOW WOULD YOU IIKI TO PART]CIPATE? BUILDING YOUR MEI.A,LEUCA BUSINESS

Categoryz

Part-Tirne Refemal BonusDirector 5$16o permonth or more

"For zo years, this has been a realfamily business. You can maintain a

true residual income, and if you worka litde harder, it will grow. Many inour organization have eamed $5opusor $r,ooout a month for years. We haveeamed a six-{igure income for 19 out ofthe past zo years. It's absolutely changedour lives. \7e were able to get totally outof debt in three and a half years. We werethe fust to invite Frad< to come overand watch us bum our mortgage. WeVe

been able to change our whole ffnancialsiruation and lifesryle, and it'sbeen wonderfirl."

Ron and Camilb Era*m,Executiv e Diredor s lll, Idaho, IJ S

"I enrolled in November 1985 at the age

of 66, a year after most people retire.Melaleuca was only two months old atthe time and had only eight produca,all based on Melaleuca OiLThe firstappeal was the safety ofthe products.I was a nurse in a hospital and I sawso many children come in because ofunsafe products. I had to let everyoneknow, especially parents with smallchildren, that they needed safe productsin their homes. It took me eight yearsofconsistent work to reach E:recutiveDftector status, but I knew it would beworth it. I have a much better refrementthan if I had stayed in nursing, I'm ableto do so much more because I donthave ffnancial worries. And I keepleaming new things and thoroughlyenjoy working with the company. It,samazing to think that I have eamed234 consecutive bonus cheques &omMelaleuca!"

ElimbethLindberg,

Exeaft iu e Dirutor, Washington, U S

' I am comforrablewith myfamily's level ofincome, butl would like to make s$r6o ormore per month to cover wel]ness-based products or other items

' I can see how I could earn some extra money by shatng Melaleuca products with a fewfriends andfamilymembers and maytryto make some ongoing referrals

Director f[-D( S$8oo or more per month

' I care about purchasing healthy products and Id like the chance to eam s$goo-S$8,ooo month

' I would like to help my family, fiiends, and colleagues experience great products whileincreasing my income enough to save for my children's college, remodel my home, orenjoy a few more leisure activities

I have afewdebts,like mymortgage and carpayrnent, arrd Iil like to paythem downmorequickly

I am willing to devote z-3 nights (5-ro hours) a week to building a Melaleuca business

Category3

Sigfri{icant Refemal BorursSenior Director-senior Director D( 5$6,4oo ormore permonth

. Im very interested in bUlding a business and I have a goal of eaming 5$64oo ormorepermonth

. I have several loans and credit cards and I would like to get out ofdebt

. I can block out 3-4 nighs a week (ro--zo hours) for my Melaleuca business

E:recutive Director andAbove S$r6poo ormore permonth

'I would like tobe ffnanciallyindependent-I'm rookingfor abusiness that cansupport me and my family at a level of S$ r(ooo or more p"r month

. I am prepared to spend zo+ hours perweekworking myMelaleucabusiness

. I want to get totally out of debt, including rny mofigage

BUILDING YOI.JR MELALEUCA BUSINESS HOW WOULD YOU LIKI TO PARTICIPATE?

MEI,ALEUCA:

/ k a financially sound companywith a long

track record ofsuccess

/ Produces unique products that people like

tobuymonth aftermonth

/ Hasloyalcuaomenwithahighmonthto-

month reoder rate Qpproximately 9/")

/ Provides wellness products that are proven

to be more economicalthan namebrands.

/ Offers an oppornrnitywhere anyone can

build a successfiilbrsiness

/ Is concemed about its customers, their

homes, and the environment, and thus

produces products and services that

promote wellness for every aspect of life

VITHMEIJII,EUCA:

/ There is no risk and no majorinvestrnent

otherthan time and commitrnent

/ You dont have to quit your regular job or

investyour savings

/ You can work ftom home and create your

own schedule

/ There is unlimited income potential

/ There are no repeat sales presentations and

no pressuring customers to purchase

/ Products are shipped directlyto customers,

so there is no needforyou to worry about

inventory billing, delivery or complicated

paperwork

/ You have thejoy ofhelping others improve

their health and ffnances

/ Achieving a balance betweenwork and

family is a real possibility

The consumerigoutsideoilhe *rt&

partnership

. \.__-rrr,l'tonDiFffi-H RETERRALS

e1, p;n"";"g *th Ma"r**ln" *i"*", o*"n,t

* _ _ ln:1sl':Tsi 11 :":":"-"1*rs- - - -rttHIGHER OUATIIY IOYALTY BEWAROS AND REVEiIUI

PRODUCTS PRIFERRED PBICING SHARING

Each enlrtytakes a

portion ()f therevenues

Melaleuca Is Not Multi-Level MarftetingVhen you think of multi-level marketing, you may think of overbearing salespeople

trying to manipulate others into buying lots of inventory You may imagine a get-

rich-quic-k scheme with promises of great wealth through very litde work. You might

envision business schemes that lack a compelhng product, but hype up the promise ofbig incomes.

There are several reasons why Melaleuca is not like multilevel marketing. At

Melaleuca, there are no inventories to buy, no financial risks, and no hype. Customers

only buy what they need each month. Some customers becorne Marketing Executives

and earn a commission ftom the monthly purchases of the customers they refer.

However, the majority of customers buy each month without any interest in receiving

comnissions-they simply want healthier lives, healthier homes, and exceptional

products at great prices.

\TrurMnxEsMEm,mucA DmTERENT?

Melaleuca manufactures quality products, sells them at reasonoble pnces,

6nd gtues customers the opportunity to share in the reuenues.

YouVe seen them bgfore-businesses that promise gteat wealth and prosperity with a

minirnal amour{#effort. what m"k"s Mel"l"rr." diff"rnt? Melaleuca marrufacnrres

qualiry products, sells them at reasonable prices, and gives customers the oppomrnity

to share in the revenue. By ehminating the costs of distribution, advertising, and

delivery to stores, Melaleuca saves the customer money, creates customer loyalty, and

provides an oppomrniry for customers to build a sensible business that comes with

residual income.

Consu.rner Direct Mar{retingfConsumer Direct Marketing redirects funds that would typically be used for

advertising, muhiple shipping costs, various middlemen, and several distribution

channels into spending for higher quality ingredients, product innovations, and

revenue sharing with customers. The result is a method of delivering quality, low-cost

products to families around the world-and then sharing the income with those

families.

TRABITIONAL BUSINE$S MOIIELMTLALEUCA$ PARTNERSHIP-

GONSUMER DIRECT MARKffING'

nqE5I IDIFE DDNS\L16|

WT]AT MAIGS MELAIEUCA DIFFERENT? BUILDING YOUR MELALEUCA BUSINESS

CETnNG Srnn:innOnce you'ue enrolled, determine your category andleuel of commitment.Whafs the next step?

NO1VISTHETIMEDont wait to start working on your business. Right now you,ree4periencing the excitement of a new oppoffuniry Capitalize onthat energy

DONTDOITAIJONEIn Melaleuca, successfirl business builders team up with theirenrollers and with otherbusiness builders. your enroller canshow you how to conduct a presentation, handle resistance, buildyour contact list, and morei

COMMIT YOTIR TIME AND ENERGYTake a moment now to review your calendar. To tmly succeed,you must work your Melaleuca business on a consistent basiseverywee\ setting aside specific hours ofthe day Ifyou haveanother job, work your Melaleuca business when you get home.I(rithout your time and commitrnent of energy, Melaleuca willjust become another missed opporiunity

YOI]R GETTING -STARIED CHEC I(I,ISTOnce you've enrolled with Melaleuca, your enroller will arrangefor a follow-up session. Complete the tasks on the checklistbelow before this meering, so you will be prepared and readyto move forward as quickly as possible. Each ofthese steps ise4plained in more deujl later in this booklet.

Your 48-Ilour Follow-Up session is scheduled for:Date

--

Tirne

Before your follow-up session, be sure you have done thefollowing homework:

! Read Your Melaleraa Customer Membershrpbooklet. Becomefamfiarwith it forfuture reference.

n Subscribe to MyMelaleuca andVatch the DiscoveringMelaleuca DVD, read the magazines. Vatch the videq thenplay theDeliuermg'JTellnes DVD as you tum the pages in theDeliuenngwellnes book Review the MelaleumCounfuy Catalog

and Leadushipln Action magazines.

n Identi$'products to order. As you review the catalog,identify those products you would like to order.

I Write downyour questions. \7rite down any questions youhave to discuss witl your enroller.

n Reviewyour categorygoal. Review the descriptions ofthe three categories in the beginning ofthis booklet andin the D eliu ering wellness book. Rededicate yourself to yourpersonal goals.

! Consider your "whyl' Your success is determined by yourdesire, and your desire is based on what you want fromMelaleuca-and how much you want it.Think about theone thing *rat's really motivaring you to succeed, and write it

-1' "town (see page r r). Then dont let anything else get in yourway

! Determine your business hours. \7rite down the days andtimes you will devote to your Melaleuca business. How manyhours are you willing to invest each week?

n Start your contact list. \X/rite down roo names-withoutprejudging how interested they may be-to get your contactlist started. Choose the ffrst 8-ro names to call during your48-hour session.

Irnportant: You may be v ery enthuiastic about gelting started with yownew business,but please follnw thtse irnportant sttpsbefore yotty +}-itsrourEoIlow-IJp sesion.This training will help youleam how to build yourbusirussthenfutway.

OTIIER IMPORIA\IT ACTMTIESE Select Your First Order. Ifyou havent shoppped for your

6rst order, write down the products youd like to tqz your

enroller will help you shop during your 48-Hour Follow-Upmeeting. If he or she is unavailable, you can call Melaleucaand place it yourselfwhen you are ready

E Order a Career orValue Pack and neginConvertingYour Home to Melaleuca Products.Ordering a Career Pack is an important decision as you startyourbusiness. It gives you e4posure to Melaleuca products ata substantial dis count of 4o''/n5oo/o offregular prices, it providesyou with the most efficient way to experience the majority ofMelaleuca products right away, it qualifres you for pacesetter

Bonuses and it takes only a few enrollnents to pay for itseH

n Review the Product Information CD. In your BusinessKit is a CD-ROM containing detailed information aboutMelaleuca products.Take some time to become familiarwithMelaleuca's products, likeThe Vitaliry Pacl€ or Replenef.This CD will be a usefirl ongoiirg resource. you can also findother helpfirl information at MyMelaleuca.com. you cansubscribe for free for your ffrst godays.

! Review suill rngYour MelabwaBusiness. Vrite down roonames-without prejudging how interested they may be-toget your contact list started (see page rz). Choose the ftrst8-ro names to call during your 48-hour session.

n Refer 8 Preferred Custohers. Starr referring contactsfrom your contact list. once you reach 8 personally enrolledcustomers) your Director's Kit will be shipped to you

BTIILDING YOUR MELALEUCA BUSINESS GETNNG STARTED

THE SEvex CnTnCALB us INES s-B urrDrr.{c AcnvrTrE s

ABOIIITHESEVENCRITIQII.ACITVIfiESIThe principles used in running a business

are pretqt much the same regardless ofthe type ofbusiness.

First, you must determine thecritical activities that drive the business,

and then you must do thern consistentlyOver the past several years we have beenteaching the Seven Critical Activities thatdrive a Melaleuca business. As I travel thecounuy and meet with our MarketingExecutives, I am surprised by how manyof those who want to be successfrrl cannottell me the key activities they are engagedin. This is a business. Ve, as businessoperators, need to know, understand,

and implement those activities that driveour zuccess. \X/e must be hard at it, doingthose things every day

Those who are wairing for somegimmick or secret system to propel theminto motion will never experience thereality ofsuccess. Nothing replaces hardwork! Nothing! Of course, we couldall work hard doing the wrong thing.That's why it is essential that we each

understand what those Seven CriticalActivities are. leam them. Teach them toyour people. Implement them daily

There is no secret to how theSenior and Execudve Directors gotwhere they are. They understand thoseseven activities and theywork atthemconsistentlyThere is a magic way to builda large, successfirl Melaleuca business! It'scalled hard work! Doing the right things!Everydayl

')^/ ,t./,.1./z^rFrankL.VanderSlootCEO ofMelaleuca,Inc.

ACITVIIY ONE: KEEP BIIILDING YOIIR CONTACT LISTA contact list i3 sihp$ a hst of names of people whom you intend to contact-peopleyou know, people you dont know, friends, family, acquaintances, colleagues, babysitters,

teachers, neighbors, and communiry leaders. But at Melaleuca, a contact list is muchmore. It is the Lifeblood of your business.

Your contact list gets you started on monthly appointments and weeklypresentations. later, as you continue to modify, expand, and develop your contact list,it will keep your business alive and growing. Every day you should spend some timecalLing contacts, following up with current contacts and adding new contacts to yourlist. Performing these activities helps build your organization and keep it strong year

after year.

ACilVIIY TWO: SET APPOINTMENTSThe importance of setting appoinunents cannot be understated. Withoutappointments, you are out ofbusiness. They are the key to a zuccesfirl growing business.Your approach canbe set up into four distinct parts.

r. CreateUr$encyYou want your call to last only r-z minutes maximum. Any longer and you may getdrawn into making the presentation on the phone. This is a mistake as Melaleuca is

best presented in person, where the potential customer'can see the Deliueringlffellness

book and anyproducts you maywant to showhim/her.

u. Sincerely CornplirnentThe second part of setting appointments is to compliment the person. It tells her whyyouVe chosen to talk to her. It helps her feel good about herselfand leaves her moreopen to what you have to say \Zhen someone notices something special about you,

doesrlt it make you more receptive to them?

3.ApproachAt this point you can insert whatever approach worls best for you and the person withwhom youte speaking. There are many approaches you can use-here are just a few

. The family approach

. The product approach

. The straighdorward business approach

+ConfirrrrThe last part of the conversation is to confirm the appointment. Give the person twoor more options. "I'm free for lunch tomorroq or we could get togetherThursdayor Friday moming for coffee. \X/hich works best for you?" Once you have theappoinrment, thank the person, tell him or her youte looking forward to it, andconfirm the date and time once again. Make sure you mark it down inyour calendar.

THE 7 CRINCAI BUSINESS-BUILDING ACTNMES BUILDING YOUR MELALEUCA BUSINESS

ACTTVITIr THREE: MAKE PRESENIAIIONSMelaleuca leaders use the Deliuedngvellnesspresentation every time they do apresentation. There are several reasons for this:. Others can copyyour actions. All ofyour enrollees who want to build a

business can do the same DelfuerutgVellness presentafion.

' rt's proven successfi.rl. Melaleuca's top business builders put this presentationtogether based on years ofexperience.

. Melaleuca makes it easy to use. Depending on your audience size;choose fromthe small booldet, table-top flip chan, large {lip chart, Ce or the DVD.

. It's visual. People can leam faster and can beter recall with visual cues.

. It's simple. Anyone can understand the presentation using this format.

ACTMTY FOIIR: HOLD 48-HOUR FOLLO\Ir-UP MDETTNGSThere are two basic tlpes of Follow-Up sessions:r. Customer Follow-Upz. Business-Builder 48-Hour Follow-Up

Thecustomer Follow-up is for those new customers who have selected a category rlevel of interest. It introduces them to the Melaleuca products, explains the sholpingprocess, and helps ensure that they will remain happy .,rrto-"r, fo, y""., ,o ..o". -

The 48-Ho'r Follow-up is a meeting scheduled to be within 4g hours of enrollmentto help category z and 3 MarketingExecutivesbegin buildingtheirbusinesses.In thisfollow-up session, the enrollerintroduces the newbusinessbuildertoMelaleucabyansweringquestions, explainingthe shoppingprocess, teachingaboutthe products, andoften helping the newenrollee to staft shopprng.

ACTTVITIT FM: CELEBRAIE SUCCESSThe mission of Melaleuca is to help people reach their goals. To inspire and motivatepeople, you must celebrate their accomplishments.

Melaleuca thrives on celebradon! From the smallest of achievements to thelargest ones, from enrolJing one customer to achieving Corporate Director, the oxygenthatteeps the fire buming is the celebration, the reward, and the recognitior. t".dlr.nged to feel good about what they're doing. vhen that happens, modvation increases,excitement grows, and abilities expand. In addition, celebration encourages repetitionand helps establish good business-building hablts.

ACTIIIIIY SItr(: AI\VAyS BD INVOLVED WrTII FIIST TRACKA Melaleuca FastTrack is a results-driven program designed to help your organizationgrow A series of meetings lasting between four and six weeks, the iast rrct h"lpsparricipants set goals, create action plans, implement those plans, repoft results,and celebrate success. Team leaders provide motivatior,, ,,rppon, *d orining andfacilitators organize the schedule and recognition awards.

Five essential activities rnake up the co'e of erreryFast Trackerzent:r. Assess the business and set goals

ACTIVITIT SE\IIEN: LEAD ByEXAMPLEA strong Melaleuca business leader leadsby example because she knows that heractions are usually duplicated by thosein her organization. k she professiona!product-centered and positive? If sqothers will duplicate her actions. Is she&sorganized, demanding, and late tomeetings? lf sq others will observe andduplicate these actions as well

Your first two months as a

Melaleuca Marketing Executive are

cridcal You get only one chance tocreate your story-make it as great as

you can! Iater, when youte referringnew customers and tryring to encouragethem to build quickly, they'll want toknow how you &d it you'llbe tellingyour'getting started" story over and overagain, so it's important to set your sightson reaching Director in your ffrst month,and Director II in your second month.

2. Create an action plan3. Implement the plan4. Report and celebrate success

5. Train and develop leaders

BUILDING YOUR MELALEUCA BUSINESS THE 7 CzuTICAI BUSINESS-BUILDING ACTIVMES

Wonps oF ApvrcE Anour rHESETrox CTUCAIAcUVITIES

Kmp BunorNc youn CoNracr I,$T"Your contact list is your commitment to gro\4th. I heard onecustomer call it her confidence list, which makes sense. Themore names you have on your list, the more confidence you'llhave that you can succeed. Ifthe ffrst three people on your Listsay no, and you have roo names on your list, that means you stillhave 97 oppomnities for success."

kcl< Jongkind, Executiu e Director W, British Columbia, LJ S

Srr AppoTNTMENTS"The purpose ofany approach, whether it is in person orover the phone, is to get an appointment to make aDelivering'wellness presentation-and that's all! Melaleuca cannot beexplained in five minutes or on the run. It,s important to createcuriosiry and yet learn how to steer the conversation in onedirection only-to confirm the appointment.,,Mark Atha, Cotyorate Dircctor:, Arizona, IJ S

MaxE PnrslxranoNs"The Delwenngwelbxess presentation was designed byMarketing Executives with many years of experience. There isno need to reinvent the wheel. Do a complete Delivuingwellnesspresentation every time and you will duplicate success in yourorganization."Ed Bestlsl, Cotporate Director yI, Eloida, IJS

Horn 4B-HouR Fouovr-UpSrssroNs"One ofthe best activities guaranteed to bring results is the48-Hour Follow-Up session. It is proven to create qualiryenrollments and sustained growth. Businesses that consistentlyhold 48-Hour Follow-Up sessions have higher averagecommissions, higher average growh rates, lower attrition,more Career and Value pack purchases, and more duplicationthrough advancement."

McKay Christ ens en, Prc sident, Melaleuc a lnc.

CnBSRATE Succnss"Great leaders make people feel bigger than they are. Followersthen begin to thid<, acr, and produce bigger results than theyever thought possible. It's all about building confidence. Ifyou want people to produce, you need to reward producdon.Recognition and celebradng success separate the caring leaderfiom the uncaring leader.They determine ifyour team is goingto get excited and follow you, or watch you walk away alone.,'Bruce N ewby, Corporate Director, Texas, rJ S

Arweys BE INVotvED \nrHFesrTnacr"There is no doubt that FastTrack has been the key part ofourgrowth.The great thing about FastTrack is that it is the mostempowering critical activiry In FastTrac! you can utilize allseven critical activities. It's the way to train new leaders comingup. It's creating'rurbo-energy' in our organization, spreadingout to various cities, and boosting our growth.',Chayleen and MarkTaliri, Executiue Directors yIII, Haw aii, IJ S

I,ren BY ExAMpLE"Converting your home to Melaleuca products with a Careeror Value Pack is the fastest and most effective way to fullyexperience the best ofour product line. \Zhen our Career pack

arrived, we took the products out ofthe box and started usingall of them right away"

Laraine Agren, Executive Director IX, Califomia, IJS

.€l.i.,is:, "+

WORDS OF AD\,'ICE ABOUT THE Z CzuTICAI ACTIVTIIES BIIILDING YOUR MELALEUCA BUSINESS

DEnNE YouR "\f/HY'Perhaps one of the most important ff-rst steps is to write down why you want your Melaleuca business to succeed. your ,why''

can helpyou to continue building and working even when you may be discouraged, tired, or unsure ofyourself Reviewlng the reasons foryour commitrnent to a Melaleuca business can be very powerftrl in helping you achieve the long-term energy anJ drive your ne"d toreach your goals. Fill out the following worlsheet and refer to it oft"n as you progress.

" trtIy' why' w as to build *risbusiness nlcouldaf@taItwe my corpomte job anlbe there for my dnuglrter. Imadt arcslutiontonanumiss anoth* perfurynarre uschool play. She needcd. me

athome.Thisdesiftmade

all the differmce. r b ecame

an h<e.utiue Dhedor in 1 4manths.Nwlamhome.Ifslv needs me,Ihnve the

feAbilitytabe there:

NdnqMcHtqlaExecutive Diredarly'I,MasswhusettEIJS

You just solidifted your'whyJ'The more it impacts your motivations,the more it will help motivate you to reach your goals.

DEFINE YOT]R "\vlilI' WTORI(SHEET

income qoal is an adAitional er month.

T _rygid like fo use the income for the {ollowinq:

l;n fAe followiIl I t aA lhis addilional ineo-e, itwould benefit -v life

is is reallv im rtantto me becaute:

I want to enroll B Preferced Customerg anA beco-ea Director

I wa'.ft fo enroll a tofal o{ Z0 Pre{erreA Customers andcreate a Personal Director b (Aafe)

II BUILDINGYOURMELAIEUCABUSINESS DEFINEYOURwI{Y

r--

AHEAD SrnnroNBUnDING Youn CoN]'IACT LTsr

Your contact list is the first step toward a successful Melaleucabusiness

You should add to it regulnrly and always heep it with you!

THINKOFPEOPLEWHO...

Are successful, but discontented.

love theirjob, but want more outoflife.

Wony about downsizing or layoffs.

Make good money, but have no time toenjoy it.

Own a business that also owns them.

Want a career change, but are finding itdifficult due ro educarional restrainls.

Are entrepreneurial, always looking forgood business ideas.

Are health-conscious or environmentallvawale.

Have small children or grandchildrenin the home.

Shop frequently at a health food store.

Take vitamins and are interested lnimproving their health.

Are worried about a health problem.

WIHAI IS A CONTACT LIST?A contact list is simply a list of names of people whom you intend to contact-peopleyou know, people you dont know, friends, family, acquaintances, colleagu.es, babysitters,

teachers, neighbors, and communiry leaders. But at Melaleuca, a contact list is muchmore. It is the lifeblood ofyourbusiness.

Your contact list gets you started on monthly appointments and weeklypresentations. later, as you continue to modify, expand, and develop your contact list,it will keep your business a]ive and growing. Every day you should spend some timecalLing contacts, following up with current contacts and adding new contacts to yourlist. Performing these activities helps build your organization and keep it stong year

after year.

"Be passionate about your conuct list Create it, add names to it on a daily basis, andkeep itwith you always. A complete, current, and active contact list is central to thezuccess of your business.'

EmnkL.varnde'f,loot

ACTMTY 1: BUILDING YOUR CONTACT LIST BUILDING YOUR MELALEUCA BUSINESS

HO\Y/TOBEGINThirrk ofpeople in yourimmediate "circle ofbfluence."These are

yourfamily members

and friends-peoplewho are close to you and

will EstEn to what yousay about Melaleuca.

Then continue toexpand andmoveoutward, reaching morepeople as you go.

IlroseYouKnowDo not make judgments

about who will orworltbe interested. Everyone

is a potential customer. Even those who dont want to enroll may be able to give youreGrrals that you can add to your List. Highlight the people who you think would bemost likely to use Melaleuca products or appreciate what Melaleuca can offer them.

Brrsiness Associates and ColleagluesThink of people you know, but perhaps haverrt contacted in a while. Remember peoprewho used to talk with you more ofien. list people you know at work, people yourspouse or paftner knows, or people you used to work with at other jobs.

An Entreprenurial Spirit1X/ho do you know who has been in or is stjll working a networking business, parq,-plan, or other home-based business? \7ho have you ulked wrth that is always iookrngfor the latest, greatest business oppornrnity? \X/ho has told you how much she wodJlike to quit ajob and start her own business?

PersonalGroupsGo through your personal lists. To whom do you send christmas cards? Do you haveaccess to an alumni list, old high schoolyearbooks, or membership lists from clubs towhich you belong? How about your prA group, professional associations, commuriryorganizations like the lions club, Elks, or ski club? Dont forget your child's school.Many teachers would like a way to eam some extra money!

Let Your Fingiers Do the WalkingiUse your personal address book to look up other potential customers Like youraccourtant, doctor, lawyer, banker, chiropracto! dentist, optician, hairdresser, or anyoneelse you may have visited or continue to visit on a regularLasis. look in your .hecktookregister for names of people you may have paid, including the carpet cleaner, florist,grocer/checker, housekeeper, insurance agent, m"ter reader, p"ychiatrist, real estateagent, travel agent, TV repairman, UpS delivery person, and waiter/waitress.

THINK OF PEOPLEWHO.,.

Have a need or desire to improvetheir lives.

\7ou1d benefft from the Melaleucaoppomrniry

lil/ant to get out ofdebt or pay offcreditcards-

Are worried about a college orretirement fund.

\[ant exffa income so a spouse doesnthave to work.

Are currently working two jobs and are

dred.

BUILDING YouR MELAIEUCA BUSINESS ACTMry 1: BUIIDING youR coNrACT UST

YOI'R' INIIIAI, COI{TACT LISIuse the following spaces to write down-names to add to your initial contact list. Tten look up their phone numbers and keep themhandytohelpyoumakeappoinunentsforfuturepresentations.Additionalpagescanbefoundin rheSorencritiaalActivitiesfuHet

Narne PhoneDate

Contacted NotesDate to

FollowUp

-!r#r

I.

2,

3.

+.

5.

6.

8.

9.

IO.

II.

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r3.

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17.

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20.

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23.

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25.

26.

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32.

YOUR INITIAL CONIACT UST BUILDING YOI,,|R MEI.AIJUCA BUSINESS

CONrACT SUGGESfiON LIST ANI} CAIEGORIESThere are more people in your Circle of Influence than you might think.Use the following list as a way to jog your memory for more possible contacts.

Friends &Neigflrborsr. Familyz. Friends

l. lunch with4 Neighbors

5. landlord

Farnily6. Car Pool

7. Playswith Xids8. Friend's Parents

9. Relatives

ro. Spouse's Best Friendrr. Cousins

rz. Babysitter13. In-laws

Schoofleaching14. Teacher

15. Principal16. Guidance Counselor

ry.KaratefBallet18. Coach

19. MusicTeacherzo. Scoutmaster

zr. DanceTeacher

zz.Llbraian23. PianoTuner

Vorftz4 Colleagues

25. Boss

z6.Sectetary27. Payroll list28. Pension Plan

29. Personal Manager

3o. Copier Man3r. Union members

32. NewEmployee

33. Operator

34. Bookkeeper

churrh&Volunteef,35. Preacher

36. Sunday SchoolTeacher

37. Youth Director

38. Church Members

Vor*ers39.Truck Driver

4o. Funeral Director

4r. Cab Driver

42. Bus Driver

43. BaLer

44 Car Sales

45. \X/aitress

46. \Waiter

47.Chef48. Cashier

49. Dishwasher

5o. Copier Salesman

5r. Cosmetic Sales

5 z. Appliance Repairman

53. Auctioneer

54. Stewardess

55.TravelAgent56. Antique Dealer

57. Sign Painter

58.locksmith59. Railroad Conductor6o. Game\Tarden

Professional6r. Engineer62. Realtor63.Iawyer64. Professor

65. Architect66. Veterinarian67.Witer58. Publisher69. Social \Worker

7o. Pilot

7r. Printer

72. Suweyor

Slnrts/Clubs73. Kiwanis

74 Lions Club75. Rotary

76. Bowlwith77. Huntwith78.Tennis withzq. Skiwith8o. Golf Pro

8r. Play Bridge82. Pool

83. Jogs84 Clirnbs Mountains85. Flang Glides

Senrices86. Caterer

87. DeliveryMan

88. Barber

89. Beautician

9o. UPSgr. Maihnangz.TVRepair

93. Fumiture Repair

*.s 94. CableTV" 95. Auto Mechanic

96. Body Repair

97. Photographer

98. SatelliteTV

99. Vacuum Cleaner

roo. Phone Installerror. Pest Controlroz. Computer Repair

ro3. Computer Sales

ro4. Cellular Phone

Errands/Iovynro5. Parking Attendant106. Gas Stationro7. Dry Cleaner

ro8. Flower Shop

ro9. Notary Public

Moneyrro. Bankerrrr. Tellerrrz. Credit Unionrr3. Accountant

l,IedicaVffealthrr4. Nurserr5. Dentist116. Doctorrr7. Chiropractorrr8. Pharmacist

rr9. Therapistr2o. Health Spa

rzr. Opticianrzz. Ambulance Driverrz3. Orthodontist

Ilorne7tlpkeepv4.Punterrz5. Rooferrz6. InsulatorrzT.Landscaperr 28. Vallpaper Installerrz9. RepairManr3o. Inspector13r. Carpet layer

r3z. Electricianr33. Contractorr34 Carpenterr35. lawn Maintenance136. Upholstererr37. Cabinet Makerr38. Plumber

Favorite llaurrter39. Coffee Shop

r4o. Arcade

ShoppingS/Storesr4r. Groceryr4z. Conv.enience

r43. Deaarrmentr44. Hardwarer45. Auto Supply146. Electronicsr47.Tnesr48. Office Supplies

r49. Movie Rental

r5o. Health Food Shop

Cornrnunityr5r. Policeman

r5z. Highway Patrol

15 3. Chamber of Commercer54. Firemanr55. Volunteer

Situations156. Iost Jobr57. Has Beenlaid Offr58. Ilates Job

PersonalityTylrcsr 59. Valking Enryclopedia16o. Most likable16r. Bookworm

Personal S€rnric€s16z. lamaze Class

163.Tanning Salon

Otlrcr164Miliury165. Hotel166. Machine Shop

167. AnimalTrainer168. DollMaker169. Seamstress

BI.IILDING YOUR MEI-ALEUCA BUSINESS CONIACT LIST SUGGESTION UST AND CATEGORIES

AHEAD SrnnroNSETnNG AppoTNTMENTS

The irnportance of setting aypoir*netit cannotbe und.erstated.without appointments,

you are out of business.They are thekey to a successful, growingbusiness.

SETSPECIFICTIMES

It's crucial to have specific times forwhen you will set appointments. If youwait until you "have time" to make calls,a week cal tum into a month or twqand then the opporrunity has passed. Set

time aside every week. Try for example,Sunday nights andTuesday momings.CalendaE plan, stick to your plan, and beconsistent.

ASKYOTIRSELF...

.will Melaleuca products enhance thehealth ofothers?

. Do I believe in the concept ofConsumer Direct Marketing*?

. Is this an oppornrnity with no ftnancialrisk?

. If they try, can a-tryone really makemoney?

If the answer is 'yes," why wouldnt youwant to tell everyone, including familyand friends?

FOITR PARIS I1O TIIE APPROACH

Your approach canbe set up into four distinct paftsr. Create Urgencyz. Sincerely Compliment

3. Approach

4 Confirm

CneateUrgencyYou want your call to last only r-z minutes maximum. Any longer and you may getdrawn into making the presentation on the phone. This is a mistake as Melaleuca isbest presented in person" where the potential customer can see the Deliueringwellnessbook and any products you may want to show him/her.

FaiJing to keep your call brief leads you into the trap of trying to immediatelyerplain Melaleuca.That's like trying to describe a song without music.It's paramountto create a sense ofurgency, make the appointrnent, and end the conversation. How doyou create urgency? By simply letting them know you dont have much time, but youwould love to e4plain Melaleuca in person.

Sincerely CornplirnentThe second part of setting appointments is to compliment the person. It tells her whyyouVe chosen to talk to her. It helps her feel good about herselfand leaves her moreopen to whatyou have to say \X/hen someone notices something special aboutyou,doesnt it make you more receptive to them?

Complimenting is also an excellent lead-in for any conversation-if it's sincere.People will detect any sort offorced comment. Thirk back to identify what is qpecialabout that person. If the contact is a referral from someone else, mention what thatperson said about the contact

SETT]NG APPOINTMINTS BUILDING YOI,,R MELALEUCA BUSINESS 16

For example:

Grocery clerlc I noticed how efficient you are at your job the other day and I mlookingfor people like that.

rrairdresser: You know, you're always so willing to listen and help people, I just knowyou'll be the type ofperson to succeed.

Friend: I know you really care about what kids are exposed to these days, and I thoughtyou would want to help other families use safer products. : ,rReferral rx/hen I asked Bob who he knew with an enrrepreneurial spirit-a peopleperson who strives for something befier in life-he mentioned you.

Neighbor: You know, I see how hard you work every day and I knowyou really careabout providing the best things foryourfamily ret me tellyou about something thatcould help.

ApproachAt this point you can insen whatever approach works best for you and the person withwhom you're speaking. There are many approache, yor, .* ur"-here are just a few:

.The family approach

.The product approach

. The straightforward business approach

use rhe ones tlat work best for you Remanber, the objective is to get the appointrnent, andnothingmore.

ConlirrnThe last part ofthe conversation is to confirm the appoinunent. Give the person two ormore options. "I m ftee for hrnch tomonow or we could get together Thursday or Fridaymorning for coffee. \X/hich works best for you?"

^ Once you have the appointment, than_k the person, tell him or her you,re lookingforward to it, and conftrm the date and time once again. Make sure you mark it down"in your calendar. You've just succeeded in getring an appointment! pat yourselfon thebac( pick up the phone, and do it again.

TIID"FORM'METHODOFREIdIING

Many Melaleuca business leaders

recommend the FORM method ofrelating to new contacts. An acronyrn forFamily Occupatio4 Recreation, and Money,this method helps categorize the need levelofyour new contact. Ifyoute really listening,youVe most likely picked up on an area ofneed with yournew contact. \7ould he liketo get out of debt?That's a Money contact. Ishe really dying to have that new car or boat?

That's a Recreation contact Does he wish hecould afford a college education for his child?That's a Family contact Think about yourcontact before you call Does she want moretime with her family? Does she work toomany hours at the office? Is she stmggling topay bills? Does she have a family member withhealth problems? Is her car about to quit everytime she drives it? Use this infomation inhelping you set the appointment.

t.ni"i9

SETTINGBUILDING YOUR MELALEUCA BUSINESS

S7rurDoYouNEEnro DoroCnrTorRrryOuroF DEer?

rf you're loohing for a *oy tot ri* extra money or reduce expenses,Melaleuca has the answer. ulith a straryhlforward, proven approach, Melaleuca giues

you the oppot4unity to get out of debt and enloy lfe to its fullest.

In a world of economic uncertainty, Melaleuca's work-ftom-home opporn:nity helps many families use their spare time to help othersenjoy the beneffts ofhealth promoting products while earning the extra -or"y rh"y.""d.

sometimes it helps to see the figures to determine what is needed to get'out of dek and set up a comfortable retirement.Numbers in black and white can help clari$, the realiry ofyour situarion and help you to set more specific goals for the future. ?ke alook at the example below

Assumingyouare4oyearsoldand canearnf,Aretarnonyourmone)1 youwillneeds$rg,2ooperyearors$r,6oopermonthtopay offyour debt in 7 years' To save s$r.6 million for retirement, you will need s$z8,8oo per year or s$z,4oo per month (assuming anon-tax-deGrred investment) for z|years.In total, you will need S$4,ooo pe.;.;;-

-

rf)toursituationissinilartotheslnpleatwe,uihatareyourplansforbtingiqginanadditionals$4ooopermonth?

t'The above idormadon consists of example5 ryfu.1t

"rr;rrrate the amount of income one-would requ'e to clear his/her debts. A11 ffgures referred to arein Singapore cunenry convened fion Noirh Ameri.* ag".-r "rn! "" l-.rt-g" rr"'.ir.Z3i.e.;;* a.ilar ro one ( r) U.s. do1a.

r

WI]AI DO YOU NEED TO DO TO GET TOTALLY OUT OF DEBT4 BUILDING YOUR MELALEUCA BUSINESS

\TrurARE Tr{E \7nys ro EanxCoUPENSAiloN vrrTl{ Mnr-trEucn?

Eollowing are seueral ways in wh1y.ft.you c6n edrn monthly commissions

and bonuses as a Melaleuca Marketing Executiue ;,

Product Introducrion Commission: The first month you personally help newcustomers purchase Melaleuca products, you eam a commission of z o% or zf/o of thetotal Product Points they purchase up to r5o product poirrts.

Personal Enrolled Customer Commission: Beginning with your personalcustomers'second month purchases, you can earn f/o, t4o/o, or zo%o o{the product pointsthey purchase monthly

organization commission: Yo n ear'' a f/o commission on the product pointspurchased mondrly by customers enrolled by others in your organization.

value Pack and career Pack commissions: rwhen customers you enroll or assist inenrolling purchase a value Pack or career pac\ you eam a s$5o or s$75 commission.

one:rime Advancemerrt Bonus/pacesetter Bonus: As you advance your business toa new status' you qualify to eam one-time advancement bonuses for each new status you

lchieve. Ifyou rapidly advance through the Director rarrks, you quarifi to double eacir ofthese advancement bonuses and earn up to S$r9,5oo onjust the pacesetter Bonus.

Pacesetter Mentoring Bonus: Each time one ofyour personal Marketing Executivesadvances to Director through senior Direcor in pacesetter timeftame, yor-"* , orr"-time bonus. one time bonuses begin at s$ roo for Director and increase with each statusup to s$3,6oo at senior Director. To qualift you must have an active status equal to orhigher than the status of the advancing personal Director.

Quarterly Director Bonus: This bonus will be given at the end of each calendarquaner (March, June, september and December). All active Senior Directors and abovecan share in a pool equal to r% ofproduct points plus all dollars not used in the monthlyleadership pooJs.

Leadership Pools: As your business grows, you can participate in montlly companyrevenue sharing based on the increase ofnew customers in your organization.

Financial Freedom Bonus: Active Senior Directors can eam 5$600 per month andExecutive Directors can eam S$r,5oo per month.

* see the cornpenntion section in thisbooliet for fn+her details.The abwe information is conect

attlutimeof pnnting.

"Anyone can build this business to anyheight they desire. I know several peoplewho are making $5oour-$l,ooous everymonth. And that is residual! \Xrhat amarvelous feeling to help someone elsechange their life and ftnancial situation.',

D eb omh Walter s, Exe cutiv e D ire ctor lII,NorthCarolina,rJS

BUILDING YOUR MELALEUCA BUSINESS WHAT ARE THE WAYS TO EARN COMPENSANON WTTH MEIATEUCAC

HovrMucrrCNNYoUEEnNI?

Once you've enrolled, determined your category andlevel of commitment,

and reviewed yourbeglnning chechlist,you may wondey:Vhat's the next step?

EARNINGSINONEYEAR

MarketingExecutives in zoo5 and

zoo6who ac-hieved the status of Senior

Directorand above on the Pacesetter

schedule eamed signiff cant income

fiom their Melaleuca businesses.

Low 5$28,532

High s$+sl,z8z

Averagie S$95,r35

There is no limit to how much you can eam in your Melaleuca business. It! all up toyou-your effofts, your time commitment, your ability to leam and duplicate provenmethods, and your dedication to success.

The faster you build your business and the more people who join yourorganization, the more success you will enjoy Melaleuca offers a unique bonus to those

businessmen and women who move quickly soon afterthey enroll You may eam intwoways:

r. The Pacesetter Bonus rewards new enrollees and their enrollers for moving rapidly toDirector level

z. The Pacesetter leadership Bonus allows advancing Directors the oppornrnity todouble their one-time leadership bonuses through the Director levels, includingadvancement to Senior Director. The table below shows an example of the potentialincome available when you follow the Pacesetter Program.

*Tlumonthinwhithtntaldallars paidmay vary and.fupmls onlherequiremmtthal atstomers oy statusbe

heldfor 3 or 4consecutitemontL*.

t Earnings mayvarybasedontlu anouttt of wdwtuuttspurchased andtlu efforts of Marhding0xuutiues.Assumes auerage of 48I4odvt?ointsof yurclnsesby custnmmintlv otganization.

Eor a comgW representntion$whntMatketingExautiues eamwithtlrciyMelalaatbusirnx,vetheCompnstianPlanandtlvtnrmeSlntistksinthisbtoldd"Ihis informahonafuinsthe CompnwtinnPlnnand/or illus*atestlu etmingpotentinlof aMarhetingLxecutiue and doesnotwptesentwhnt arryMa*ztingExrcutive will eavn nll figryes yefmed ts are in Singapore amenry.

HOW MUCH CAN YOU EARN4, BUILDING YOUR MELALEUCA BUSINESS

SAMPLE FIRST TIY/O MONIHSFOR CAIEGORY zS AND 35Following is a realistic example of how much you can eam in your first two monthswith Melaleuca if you achieve the status of Director and Director II.

Earrr 5$6oo+ Your First Month-Achieve Director

Product IntroductronBonus (zf/"f zo%of totalproduct points) ....................................... S$zzo

Pacesetter Director Bonus ............... ,.*.1"._.._...-........... S$zoo

4Value PackAssist Bonuses (g5o each) ..................... .................................. Sgzoo

Earn S$rzoo+ Your Second Month-Achieve Director IIProduct Introduction Bonus (zo% oftotal product points) ................................................. S$zoo

Pacesetter Director II Bonus ........... ................................ S$+oo

4 ofyour personally enrolled customers buy Value packs (g5o each) ................... Sgzoo

4 Value Pack Assist Bonuses ($5o each) ................. ..... S$zoo

Organization Commission (fiom rst month enrollees) ........................................................ S$zBo

"rffhatever your goal, it's here for youif you're willing to put forh the effort.You can reach your goals. t$tre know*wedid it'Brure andKrstinNewbyCotporate DiredwqTexas, US

nentlts may va;ryfwmbusinesstnbuiness. Eor an acanate rcyeseriation of whatMnkdmgExeattfues eam withtheirMelaleumbusiness, see tlrc cotnpmntionplan orthelnnme stnistis inthisboohbt. Allfigures are in Smgapare dnilars.

BUILDING YOURMELALEUCA BUSINESS HOWMUCH CANYOU EARN4

EXAMPI,E

Ifyou enroll on August r5, Augustwould be your month of enrollment. you

have two calendar months-septemberand October, in this case-to achieveDirector status. You would then need toadvance one Director status level eachmonth to continue on Pacesetter timeframe.

THE PncESETTER PRoGRAIIPACESETIER DIRECTOR BOI\USThe Pacesetter Program is part of Melaleuca's Compensation plan. New enrolleescan earn up to S$zoo and their enrollers earn S$roo when the new enrollee buys a

career Pack or value Pack and becomes a Director. This bonus rewards new enrolleesand their enrollers for moving rapidly to the Director level. New enrollees and theirenrollers can each earn a S$roo bonus if

r' -ir'

Ilre new enr.ollee (who earts S$roo)r. becomes a Preferred Customer, andz. buys a Value or Career Pack, and3. becomes a Director within the first two

calendar months following the month ofenrollment.

PACESETTER LEADERSHIP BOhIUSFOR DIRXCTORS & SENIOR DIRECTORSAdvancing Directors through Directors IX, and Advancing Senior Directors throughSenior Directors IX, can double their One{ime leadership Bonuses each timethey advance depending on whether they meet the Pacesetter timeline. Rapidlyadvancing Drectors will earn Pacesetter Leadership Bonuses instead of the One-Time leadershipbonus.

the enroller (who earns S$roo)r. has an active status ofDirector or

above, andz. has, since joining Melaleuca,

purchased a Value or Career Pack.

One-TimeLeadership

Bonus -PacesefterLeadership

Bonus

Minimum#of Personallv

Enrolled'Customefs

Averaseleaders"hip

Points -

Required

oualifrfroriTimi.fEnrollment

PersoaalDirectorsRequired

Months ro

S$roo S$.zoo 8 r o zMonthsUrecorUDirector III S$3oo

qlfectorlV

Dkectorv S$joo S$rp;

DirectorVll S S$z,ooo

SeniorDrcctor S$3,6oo S$z,zoo IOmontls since achievhs

Senior flirector "5

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seni-tirectorr,il sz.ofpg6--=o%;fpEc----. ';;- * -- -i3 - - 8 MonthsSeniorDirectorlX sZofruC--- loEiFiEE..- * '

ro MonthsExecutive Director ro% of PXG 20 15 10 rzMonthJ'::

Note: PEG, (Pe$onal Enrollee Group) volume is the total organizational product point volume of a Marketing Execudve's personal Enrollees in anygiven month. For advarrcing Directors to quaLify for Pacesetter Leadership bonuses, they must hold their new status for three consecutive months.

THE PACESETTER PROGRAM BI,IILDING YOUR MELALEUCA BUSINESS

THE METnTEUCACotvrPENSATrox Prnx

Melaleuca's Compensation Plan is designed to reward independent MarketingExecutives who develop customers for Melaleuca products. The income you eam fromyour Melaleuca business is determined by three factors: the numbbr.&customers youhave, the amount each customer purchases each month, and your effectiveness inbuildlng a marketing organization that includes other Marketing Executives who helpyou expand your customer base as they build their own marketing organizations.

The key to understanding the Melaleuca Compensation plan is to remember that allcommissions and bonuses eamed are based on the sale of products to end consumers."End consumers" are customers who purchase products to use in their homes. you donot eam commissions and bonuses for recruiting or signing up customers-but youwill be paid commissions whenever those customers buy products. And that can meanmonthly residual income for years to come.

The information on the next few pages explains the Compensation plan, and is notrepresentative of what any Marketing Executive will earn. Any representation orguarantee of specific eamings would be misleading. Success with any business takeshard wor\ diligence, perseverance, and leadership. Success with Melaleuca willdepend on how effectively a Marketing Executive exercises those qualities.

Frark I,. VanderSloot, CEO

'Ut-/,J-/2^r

Frankl. VanderSloot

"Melaleuca's Consumer DirectMarketing* program provides theoppomrnity for people to succeed

through their own efforts. Tens ofthousands of famfies are now competingdirecdy with major manufacturersof nutrition, pharmaceutical, bath &body, and home care products-andwinning! \7hen customers purchase

Melaleuca products each month, profitsftom those sales go directly to famiJiesthroughout the world rather than to largecorporations."

23 BUILDING YOUR MELALEUCA BUSINESS THE MEIIILEUCA COMPENSATION PI"A,N

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25 BI'IILDING YOUR MEI-{LEUCA BUSINESS THE MIATEUCA COMPENSAIION PLAN

C olt prxSATI oN S utvttr,tARyProdrrct Introdrrction Cornmission. As the Enroller,you earn up to zf,A commission on the first r5o productpoints purchased by your personal cusromers when theyshop in their first month (select pack and back up ordersexcluded). If you are the immediate Marketing Executivein the customer's suppon line, you earn z7o/o. If you arenot, you eatn zoo/o and the immediate Marketing Executiveearns f/".

Circle of Influence Bonrrs. Marketing Exe.rtirr"rlit*who qualify for Circle of Influence (COI) in a month byenrolling 4 new customers will receive an additional COIbonus of S$r5o. If the Marketing Executive,s AverageRetention Index (Anf) is above B5%, the bonus will be paidin the qualfing month. If the Marketing Executive's ARI isbelow 85%, the bonus will be paid after the cusromers haveremained active for 3 months.

Personal Enrolled Crrstomer Comrnission. Asan active Director, your commission paid on your personalcustomers' Product Point purchases increases to t4% (with8 to 19 personal customers). I7hen your active personalcustomers increase to 20, you eatn zoo/o on all product pointsgenerated by those customers each month.

Or$anization Cornrnissions. Each month that youquali$r as an active Marketing Executive, you will receive acommission of 7/" onthe first r5o product points purchasedby each customer in your Marketing Organization. you eamthe Organization Commission from customer purchasesafter the customer's month of enrollment. To quali$r forcommissions in the customer's second and third months, thecustomer must shop and place a minimum product pointorder.

Career/Valrre Pack Cornmission. MarketingExecutives earn S$5o on the Value packs and S$25 onthe Career Packs purchased by their new customers inthe customer's first two months following the month ofenrollment. Customers may purchase up to two packs, butthe commission is only paid on the first pack purchased.A Marketing Executive may earn the Career/Value pack

Commission if they are designated as the,Assist" onthe Independent Marketing Agreement form of a newMarketing Executive who is not their personal customer.

One-Tirne Advancernent Bonuses. When youadvance to Director and each Director Status throughDirector IX for the first time, you earn a one-time bonusbeginning with S$roo at Director, and increasing to 5$r,6ooat Director IX. \X/hen you advance to Senior Director forthe first time you receive a one time bonus of 5$3,6oo.

rJ7hen you advance to Senior Director II through IX for thefirst time you receive 5o/o of your Personal Enrollee Groupvolume as a one time bonus. \7hen you advance to ExecutiveDirector through Executive Director IX you receive ro% ofyour Personal Enrollee Group volume as a one time bonus.

Pacesetter Bonuses. \7hen a new enrollee advancesto Director in Pacesetter timeframe, the enrollee and theirenroller can each earn a one-time pacesetter bonus if:

The new enrollee (who earns S$zoo) The enroller (who earns S$roo)r. becomesaPreferredCustomerand r.hasanacdvestatusofDirector

Or above, andz. purchases a Value or Career Pack, and z. has, since joinhg Melaleuca,

purchased a Value or Career

Pack.

3. becomes a Director within the {irsttwo calendar months following themonth of enrollment.

Then as you advance through the Director ranks inpacesetter tirneframe you earn one-time bonuses equal totwo times the one-time advancement bonus at each starus.

PacesetterMentorirrgi Bonrrs. Each time one of yourpersonal Marketing Executives advances to Director throughSenior Director in Pacesefter timeframe, you earn a one-timebonus. One time bonuses begin at $roo for Director andincrease with each stafus up to 5$3,6oo at Senior Director.To quali$', you must have an acdve status equal to or higherthan the status ofthe advancing personal Director.

Director Developrnent Incentive. In any monthin which a Director or above develops an new personalDirector, the leadership Point requirements for starus will bewaived for that monrh and the following two months as longas the personal Director remains active!

Active Senior Directors. Active Senior Director canearn 5$6oo per month and Executive Directors can eafirS$r,5oo per month.

Directors and above are guaranteed all personal Commissions evenif they produce no Leadership points in any given month. Directorsare guaralteed to earn a minifnum commission of s$z5o per month.In any three month period, ifa Director earns at least one leadershippoint, he/she will be eligible to earn organization and leadershipcommissions as shown above.

AoomoNarlNcunrrnms

COMPENSAIION SUMMARY BUILDING YOUR MELAI-EUCA BUSINESS

AnornoNAr lEeonnsnrp IxcENTTvES AND BoNusnsDrrnrmoxs

Product Point A value assigned to each Melaleuca Droduc orservice upon which commissions and bonuses are calculated.

Organization Volume The total product points ftom productsand sewices purchased in a Marketing Executive's org*iotionin a calendarmonth.

PEG Volume Personal Enrollee Group (pEG) Volume isthe total organization product point Vdlume of a MarketinoExecutive'slersonal Enrollees in *y gi*" *.irt .

Leadership Points leadership points measure the levelof support a Marketing Executive provides to his or herorganization. Melaleuca's Compensation plan requires eachDirector II and above to regularly produce leadership points.Up to six_leadership Points are available for enrolling a newPreferred Customer. These six leadership points are iistributed

,.,$frllo*t'

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Pres€nter

Careerlgalue Pacft

3 leadership Points

z leadership Points

r leadership poinr

rarnedby the enrollerwho is the Mad<eting Executive who provided the name ofthenew Pteferred Cmtomer

Eamed by the Markering Executive who gave rhe majoriry of the presentadon that resukedin the enrollment of the Prefemed Customer

Awarded to the presenter ifrhe new pteferred customer purchases a Career or value packduring the month of enrollment.

Roen ro Etccumrr DrnncronTh,enuxc

This is one of the most informative and effective events forSenior Directors working their *ry,o E*".uJu" Dir;cio^r-^status. Ifhen Marketing Executives become Senior Directors,they are invited to Melaleucas offices for a training event, witlthe opportuniry to tour Melaleuca,s facility and -E"t *itii tt

"Management Team members

Quenrnnrv DrREcroR BoNUsCorporate, Executive, and Senior Directors mav parricioatein a Quanerly Director Bonus designed to ,e*"rd leadJrc fordeveloping personal Directors and helping others do the same.

The bonus works as follows:To participate, you must develop one (r) new personal Directorand have two (z) personal enrollees advance to a status aboveDirector in the quarteE OR develop two (z) new personalDirectors and have one ( r) personal enrollees adriance to astatus abo-ve Director in tle quaner, OR develop three (3) newpersonal Directors in the quarter.

At the end of each calendar quarter (March, June, September,and December), all active Senior Directors and abo# canshare in a pool equal to r% ofcompany product points duringthe quarter.

You will participate in the pool according to the increase inyour organizational Directors ftom one quarterto the next.leaders who are in their ftrst z4 months with Melaleuca canearn up to zo% of in-country pEG volume in the pool?arricipation in the pool will be prorated (roo%, 66%, or 33%)based on your active status during each month in the quaner.Directors who roll up into your organization during thequarter will not count in your orginizarional Dfue;r count.

ONn-Trur AnvervcnivrENT &PecrsrrrER BoNUSES

r) One{ime Advancernent Bonus: As MarketingExecurivesadvance in status, tley can eam One{ime AdvancJmentBonuses. This bonus will be paid out after rhe MarketinsExecudve has rnaintained the status for three consecutiiemonths.

z) Pacesetter Bonuses: Marketing Executives who havepurchased a Career or Value Pack can double their One;IimeAdvancement Bo-nus by advancing rapidlythrough rhe Directorranks. If the Marketing Executive ad.rrrn es to

".ih $atus within

the speci dtimeallotted (seebelow), theywill qualifvfortlePacesetter Bonus in place of the One{imeAdvancement Bonus.

Pacesetter Bonus

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Director II 3 Months

Director III 4 Monrhs

Director IV 5 Months

Directorlr 6 Months

Director VI z Months

Director\tI I Months

Dilector\,lil s Monrhs

DkectorlX roh{onths

Senior Director r r Months

SDIi r Monrh

SDIII z Months

SDIV 3 Months

SDV 4MonthsSDVI _sMonths

SD\1I 6Months

SD\AII B Months

SDIX ro Months

BUILDING YOUR MELALEUCA BUSINESS ADDMONAL LEADERSHIP INCENTNTS AND BONUSES

IrenrnsnrpPoors

Active Directors III through Directors IX participate in a monthly Leadership Pool equal to lolo of total companyProduct Points; Senior Directors participate in a Leadership Pool equal to l7o oftotal company product poirts;and Executive Directofs and:Corporate Directors participate in a Leadership Pool equal to 2olo of totai companyProduct Points.

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ADDMONAI LEADERSHIP INCENTNT,S AND BONUSES BUILDING YOUR MEI*ALEUCA BUSINESS

Tnnnr Iuponruvr penrs OrANENnorr.l,rcvrEnrollfirents are divided into three (3) parts.by using Ieadership Points that affect bonusesfor leaders. leadership points are assigned as

follows:

lead/Xnroller 3 pointsPresentation 2pointsCarcerf r point (awarded to theValuePack Presenterifthenew

enrollee purchases Career

or Value Pack duringtheir month ofenrollment)fpoints availableforeach enrollrnent

Preferred Customer Membership Agreementforms require enrollers to speci$whichMarketing.Executive helped with each partofthe enrollment. To quali$' for points forthe current mont\ the preferred Customerpaperwork must be received before montHsend. Please note that these I€adership points

will determine stana, advancements andcommissionq therefore, enrollers shouldassign these points carefully and honesdy Thepoints are allocated according to the followingdeffnitions:

IJAD/ENROLLERThe Marketingnxecutive who zupplied thename ofthe enrollee.

PRESXNIANONThe Marketing Executive who gave themajority ofthe ptesentation that resulted inthe enrollment of the Preferred Customer.one additional leadership point will begiven to the presenter for each presentationthat results in the purchase ofa CareerPack or Value Pack by the new enrollee inthe month of enrollment lnrollees mustmaintain their Preferred Customer starusall three months for the leadership points

to count for the three-month average. Forexample, a current leadet who has earnedleadership Points would calculate as follows:

February r5March t+Ap.rl 16

+5+3=15

Luenrnsrrrp PorNTs

Rrqtnnno FonlilosRsDirectors or above who have achieved

zo,ooo or more organization Product Pointsare tequired to produce an average of roleadership Points per.ft-iotth. For every

5,ooo ad&tional organizarion Product ?oints,Ditectors or above must produce one moreleadership Point. For example, a Directoror above with z5,ooo organizational ProductPoints must produce rr leadership Points;similarly, a Director or above with 3o,ooomust produce rz leadership points, etc. Thoseproducing fewer leadership Points will receivea percentage ofthe total commission available.

LnenrnsmPPootIuronuerroN & DrrarrsActive Directots III * Corporate Directors canpanicipate in exchrsive leadership pools. Theleadership pools are designed to reward thoseleaders that provide an ongoing contribudonto their organization by creating growth andhelping others reach rtreit goals. A requirementto participate in any leadership pool is to havedeveloped one (r) or more new personallyenrolled Directors in the prior three months.

Active Directors III - IX can panicipate in theDirector's leadership Pool up to a mon*rlyamount equal to the status caps in place fortheir status organizarion commission or upto 9o% ofwhat they would make as a SeniorDirector in the Senior Director leadershipPool, whichever is less. Directors III * IX rnusthave a minimum of6ve average LeadershipPoints to participate in the poo1. If the three-month roll-ing average of leade$hip points isless tharr 15, participants may earn up to themaximum of Sggoo in the Leadership pool.

Senior Directors - Senior Directors D( mayeam up to S$Toooor f/"ofthebpEGvolume,whichever is gteater (not to exceed S$r5,ooo)ftom the Senior Director leadership pool

SeniorDirectors mayearn upto the maximumof 9o% ofwhat theywould make as anExecutive Director in the Executive Directorpools. New Senior Directors will, in the thirdconsecutive month as a new Senior Director,receive double their normal status factor forthat month. In that month they may earnup to S$r4ooo or /. of their PXG volume,whichever is greater (not to exceed S$r5,ooo).

Xach month the top Executive Director poolpoint eamers, the top Senior Direcor pool

point eamers, and the top Director pool pointeamers will share in a ponion ofthe respectiveleadership Pools. In order to panicipate, topMarketirrgExecurives must have a leadershipPoint average ofat least 4o Leadership points.

Top pool point eamers in the Directorpoolsmay not have been an active Senior Directorpreviously Top pool point eamers in dreSenior Director pools may not have been anactive Executive Dirator previously

Executive and Corporate Directors mayeam 14% oftheir PEG volume or S$3o,ooo,whichever is less fiom the Execurive Direcrorpools.

Director III Minirnrrrn CornrrrissionGuarantee" Active Directors III and aboveare gtmrmteed to earn monthly commissionsofS$25o.

Residual Irrcorne for PersonalCornrnlssions is Guaranteed! Leaderseam personal commissions (residual incomefot work they &d) regardless ofleadershipPoint production. Ad&tionally, as Directorsmeet all other requirements to be a Dkector,they will be paid on Presentation commissions.The Presentation commis sionis a f/ocommission that is paid on the product pointsproduced by customers in your organizationforwhom you did the presentadon and eamedthe Presentation leadenhip points.

Additional First G€neratlon position.An additionalffrst generation position will begiven to leaders who advance to Director \lI forthe first time!

Execqtive I)lrector Credits" To advancebeyond Corporate Director Status, a CorporateDirector must maintain the minimumqualiEcations for Corporate Dhecror which are:at least ro personally enrolled Directors, ffve(5) ofwhich need to be Executive Directors,achieve minimum Organization & pXG

Volume eqrul to the status they are trying toachieve, and achieve the personally EnrolledXxecutive or Colporate Director credits.Executive or Corporate Director credits arecalculated each month based on the activestatus ofyour personally enrolled Executive orCorporate Directors as follows:

Starus credit I stanx CreditExecutive Direcor r. r I Exerurive Direcror \,I r.eErerudve Direcror IJ r.z I Executive DirefforVII r.7Execurive Dirctor III r.l I Exeutive Dirctor\lII r.gExrcutive Direcor [V r.4 | Exerutive Direcror D( r.9Executive Direffor V r.5

| Corpomte Direftom z.o

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BI,IILDING YOUR MELALEUCA BUSINESS ADDInONAI TEADERSHIP BONUS INTORIVIATION

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2008 Annual Income Statistics

Customer Referrals Status29%o of allMelaleuca customers have refer:recl at least one customer but fewer than eight customers. As those customerspwchase products directly from Melaleuca, those who referred them receive a small commission. These households arenot necessarily interested in the financial opportunity. Their relationship with Meialeuca is primarily because they loveMelaleuca products. Their "status" is determined by how many customers they have referred. A Marketing Executive hasat least one customer. A Marketing Executive II has referred at least two customers and a Marketing Executive III hasreferred at least four customers at some time in their life. While these individuals may not be considered serious businessbuilders, their customers (Iike the vast majority of Melaleuca customers) come from word-of-mouth referrals. Therefore, theoverall contribution of these individuals is significant.

Time to Achi.o. Stato"l

CustomorsThe majority (more than 600Z) of tho.uwho buy Melaleuca products each month arestrictly customers. They are not interested inpursuing the Melaleuca financial opportunity.They just love Melaleuca products. Only a fewof them will ever decide to build a Melaleucabusiness.

I'll:r, lxecutive

!it:. 3ree, iih:iLr. Xr':e, nl{

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1{}.*%

$2, 142

+\ t,> / ')

$tr$,94{;

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32$ tolo,

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Developmental StatusOnIy 1 out of 9 customers (11%) witt decide to start their own Melaleuca business and eventually achieve Director statusor above. Directors have made a substantial effort (probably spent at Ieast 50 hours) in developing at least eight Melaleucacustomers. Those estimated 50 hours could have been spent in a single week or could have been spent over several years.But at some point in their lives, Directors have invested enough time to develop (and maintain) at least eight Melaleucacustomers.

ActiveExecutive

Status

Percent ofBusiness

Annual Income MinimumPetsonal

Average

PersonalMinimum

TotalActive

Customers

Average

TotalActive

Customers

Time to Achieve Stato"l

tluilders withThis Stams High Low Avnage

Customets CustomqsShortest

TimeLongestTime

Average

Time

Dr.rctor i/iI 'd3,7"/" $J4,eri g1 *5 $J,> / 3 t$ i4 1$ 65 I M*, 120 Mo"

ANNUAI INCOME STATISTICS BUILDING YOUR MELALEUCA BUSINESS

ol 1.6 Singapore doltar per one (l) U.S. doilar)."

Executive exercises those qualrties.

1 lnclums all active lvlarteting ExecLJtives joining Metaleuca wi$in the past t0 years.z Includes statistics for Senior Directorthrouqh Senior Director X.r lncludes statistics for Executive Drcct0r firough Executive Direct0r lX.q

Includes statistics for positjons 0t Corp0rate Director and higher

Initial Leadership StatusLeaders at these statuses have made a more serious effort at buitding a Melaleuca business. Those who have reached theseleadership statuses have not only invested enough time to develop seireral customers, but they have atrtt

"ip"a some of

those customers start a business and become Marketing Executives. Those Marketing Execuiives have, in turn, referredadfiJional customers who purchase Melaleuca products each month. Commissions are paid based on the development ofcustomers and the development of leaders who help others reach their goals.

Active

Execudve

Status

Percent ofBushess

Suilders

withThisStatus

Annual fncome MinimumPersonal

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Personal

MinimumTotalActive

Custoners

Average

TotalActive

Customqs

Time to Achieve Statusl

High Low Average ShortestTime

LongestTime

AvmgeTime

Dir.III

nir,l\: I V

Dir. VI / l:U

Oir VIll / IX

6.28/o

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&38,933

$43,509

$65,fi72

$98,330

$2,951

&7,528

$t?,852

#1.9,2t5

$r0,859

$18,131

$2S,t7o

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294

406

618

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Advanced L eadership StatusThose Marketing Executives who reach Senior or Executive Director status have shown substantial interest anddedication in building a Melaleuca business. While they may not work their business full-time, it is essential that theyinvest some time each month nurturing, training, and irelping those in their marketing organization. Melaleuca advocatesthat Marketing Executives keep their futl-time job and work ihui" M"lule,r"a business in tleir spare time. However, someExecutive Directors at the higher income levels do work their business close to full-time. Melaleuca

"t"ongly rdrro.utu"

that Marketing Executives do not quit their futl-time job until their Melaleuca income far surpasses the income theyreceive from their full-time employer. Rather, they should add their Melaleuca income to their regular income, therebymaking a substantial difference in their family finances.

ActiveExecudve

Status

Percent ofBusiness

Builderswith This

Status

Annual Income MinimumPersonal

ArcngePersonal

MininumTotalActive

Customers

Average

TotalActive

Customets

Time to Achieve Statusl

High Low Average ShortctTime

LongstTime

Average

Time

Senior Dir,2f -, 1trxecunve lrrn-

- ^.4LOIPOrate ulr '

2,8%

1.5$/a

tr*ss thanB.lo/o

fi263,766

$887,136

$1,264,s?2

$31,266

$58,87?

$838,565

$83,38?

$222,81t

$1,814"0r4

28

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89

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7,832

97t2,643

L2,915

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120 Mo,

120 l{o,

120 Mo.

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24 Mo.

39 Mo,

r3I BUILDING YOUR MELALEUCA BUSINESS ANNUAI INCOMI ST,{TISTICS

Crrstorner MernbershipAg!'eernentTo ensure quick and accurate processingof your Customer MembershipAgreement form, please follow thesesimple guidelines:. Fill in neatly using uppercase letters andstaywithin the boxes.

. Use a permanent inl ballpointpen.

. Verify correctness ofspelling andaddresses.

Please remember to:

r. Complete all five secrions.

z. Attach appropriate Interbank GIROdocumentation, if applicable.

3. Mark one ofthe Backup Orderselections in Section 3.

4. Fillin your name, home phone numberand the products tobe included ontheSelect Pack form on the revenie side ofthe Customer Membership Agreementif using the Select Pack Backup Order.

5. Faxboth sides ofthe CustomerMembership Agreement if you plan tofax your forms.

6. Submit a new Customer MembershipAgreementform when making a

change, such as a differentpreferedmethod ofpayment or a differentBackup Order selection, and be sure toprintthe name, home phone number,and birthdate ofthe person listed onthe Melaleuca account.

7. Make sure allforms are signedpersonally by those persons listedonboth the Customer MembershipAgreement and the IndependentMarketing Executive Agreement.

Following these simple guidelines willhelp ensure timely processing ofyournew customer's account information.

Flovr To CovPtETE MrrerEUCAENnoTtMENTFonus

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Ho\r To CoMPLITE METAIEUCA ENRoLTMENT FoRMs BUILDING YOUR MEI-ALEUCA BUSINESS

IrrdependentMarftetingExecutiveAgfeemerrtTo ensure tirnely processing ofyourIndependent Marketing ExecutiveAgreement form, please follow these

simple guideLines:

Fill in neady using uppercase letters

and stay within the boxes.

IJse a permanent inkballpointpen.Veri$r correctness ofspelling and

addresses.

Please rememberto:r. Complete allftve sections.

z. Nominate your preferred level ofparticipation and order your BusinessKit. tfyou already have a BusinessKit please indicate the Business Kitnumber.

3. Sign up to receive our weekly email'InTouch. Marketing Executives whosubscribe to InTouch receive updates

on business and product offers.

4. Convertyourhome to Melaleuca bypurchasing a Career Pack orValuePack Nicole Miller Value Pack

contains everything you need to tryout, introduce or demonstrate NicoleMiller products to potential customers.These Packs offerfremendous valueand are an essentialbusiness-buildingtool. The purchase ofthese packs

also ensures that you are eligible forPacesetter Bonuses.

5. If someone other than the enrollerassisted with the presentation, includehis or her detai.ls in this section.

6. Make sure you understand, agree toand sign the IndependentMarketingExecutive Agreement.

What ar,e the berrcfits of enrolling nery custorners?Consistent enrollments make your organization grow You also receivea Product Inrroduction Bonus on youi.orao-".r1fur, calendar monthorders up to r5o Product Points. For enrollers to quali$, for the product

Introducrion Commission, the customer must shop in the first month.Ifthe customer receives any variety ofBackup Order or Select pack inthe frst month of enrollnent, no Productlntroduction Commissionwillbe paid.

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BUILDING YOUR MELALEUCA BUSINESS HOV'TO COMPLETE MEIAIEUCA ENROIIMXNT IORMS

Hovr To CotvtprETE MEr,qmucAExnonMENTFonvs

CustornerMernbershipAg[eernentTo ensure quick and accurate processingof your Customer MembershipAgreement form, please follow thesesimple guidelines:. Fill in neady using uppercase letters andstaywithin the boxes.

. Use a permanent ink ballpoint pen.

. Verify correctness ofspelJing andaddresses.

Please rememberto:r. Complete allftve secrions.z. Attach appropriate Interbank GIRO

documentation, if applicable.

3. Mark one of the Backup Orderselections in Section 3.

4. Fill in your name, home phone numberand the products to be included on theSelect Pack form on the reverse side ofthe Customer Membership Agreementifusing rhe Selecr Pack Backup Order.

5. Faxboth sides of the CustomerMembership Agreement ifyou plan tofaxyourforms.

6. Submit a new Customer MembershipAgreement form when making a

change, such as a different preferedmethod of payment or a differeftBackup Order selection, andbe sure toprintthe name, home phone number,and birthdate ofthe person listed onthe Melaleuca account.

7. Make sure allforms are signedpersonally by those persons listedon both the CustomerMembershipAgreement and the IndependentMarketing Executive Agreement.

Following these simple guidelines willhelp ensure timely processing of yournew customer's account informadon.

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HO\X/TO COMPETX MEIATEUCA XNROIIMENT FORMS BUILDING YOUR MELALEUCA

IndependentMarftetingExecutiveAg[.eernentTo ensure timely processing of yourIndependent Marketing ExecutiveAgreement form, please follow thesesimple guidelines:. Fill in neatlyusing uppercase lefters

and staywithin the boxes.. Use a permanentinkballpoinrpen.. Verify correcrness of spelling and

addresses.

Please remember to :

r. Complete allffve sections.z. Nominateyourpreferred level of

participation and orderyour BusinessKit. ffyou already have a Business

Kit please indicate rhe Business Kitnumber.

3. Sign up to receive our weekly email'InTouch. Marketing Executives whosubscribe to InTouch receive updateson business and product offers.

4 Convertyourhome to Melaleuca bypurchasing a Career Pack orValuePack. Nicole MillerValue pack

contains everyfhing you need to tryout, introduce or demonstrate NicoleMiller products to potential customersThese Packs offertremendous valueand are an essential business-buildingtool The purchase ofthese packsalso ensures that you are eligible forPacesetter Bonuses.

5. If someone other than the enrollerassisted with the presentadon, includehis or her details in this section.

6. Make sure you understand, agree toand sign the IndependentMarketingExecutive Agreement.

What ae the bendits of eniollingn€wcrrstornef,s?Consistent enrolrnents make your organization grow you also receivea Product Introduction Bonus on yo* .r.rrroro"rslfirst calendar monthorders up to r5o Product Points. For enrollers to quali$, for the produciIntroducrion Commissiorr, the customer must shop in the first month.Ifthe customer receives any variety ofBackup Order or Select pack inthe first month of enrollrnent, no product Introducrion Commissionwillbe paid,

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I] ,, BUILDING YoURMELALEUCA BUSINESS

k--HOWTO COMPLXTE MEIAIEUCA INROI,IMENT FORMS

"If you re not on InTouch, you're outof touch. It's an absolutely criticaltool. We use it every week to identiS'the new business builders who haveenrolled so we can make contactimmediately and make sure they havea mentor to help them get off to a faststart. Instant communication is thename of the game

- if you re waitingfor your business report, youire fouror five weeks behind on the newenrollments you could have been intouch with right away''

Mark Atha, Corporate Director,Arizona, US

"The InTouch report is the mosteffective tool to get a weekly look atthe progress of your business. It makesit much easier to single out the newbusiness builders-those are thepeople you want to be working with."

AIan Pariser, Corporate Director \Florida, US

INTOUCHBYEMAII

Dkectors

S$r5.oo per month

Senior DirectorsS$zo.oo per month

Executive DirectorsS$z5.oo per month

KrEp IxToucHIttlouch is ahey tool tohelp you monitor yourbusiness.

Tap into the Pgggsetter and Pacesetter Mentoring bonuses, advance yourselfand yourleaders more'quickly and do it all more effectively by subscribing to the Inlouch repordThe key to the Pacesetter bonuses is knowing who has enrolled as a category z or 3 inyour organization (those who have indicated they wish to develop a referral business).By mentoring the z's and 3's, you can concentrate your efforts where they will pay offThat's whythe InTouch report is so critical to your success.

Ilre Most Valsable Ifeport Yodll c€tThe InTouch report is not as comprehensive as the monthly Business Reporr. Butit gives you the information you need to get your business giowing now instead ofnext month.

WhatltlellsYouThe InTouch report is available to Directors and above. Every Wednesday morning, tleMelaleucacomputeremafu you information onthe latestcustomergains and losses inyour organization. It gives you details on new enrollees, sorted by parriciparion goal orcategory with name, address, and phone number, as well as the enroller and enrollmentdate, executive status, Value Pack or Career Pack purchases, generation level, and wlro isenrolled as a category z or 3. There is also a list ofcancelled customers ftom the previouswee\ along with information such as their active status, number ofpersonal enrollees,and reasonforcancellation. Anotherpage lists the reacrivations inyourorganization.

IlowtoUseItRead it and lead! This report will heh you create satisfied customers and successfirlbusiness builders in your organization - at the times when they most need your help.\Telcome new Preferred Customers inyourorganization. Share product stories andreinforce their decision to enrol

Find those who enrol in category z or 3 and start the mentoring process imme&atelyIf you are the ffrst supporr ljne Dfuector II, it will be marked with three asterisks. Thisindicates that you hold a crucial position in helping them succeed. likewise, ifyoutethe 6rst support line senior Director it will be marked with two asterisls, and ifyoutetheffrst supportline Executive Directoritwillbe markedwith one asterisk As the newenrollee's leader, you can check to see ifthey have purchased a Value or Career pack,

team up to make presentations and help them reach Director andbeyond.

For cancellations, call and e4press your regrets that theyte leaving. see ifthere's a way totum the situation xrcund - ns\i/ or firrther down the road. cancellations noted with an'N indicate a non-payment cancel and a problem with the customer's preferred status.

C,€tInToudrIt's yourbusiness. InTouch can help you make the most of it. subscribe today, and makethe most ofyour organization!

KIEP IN TOUCH BLIILDING YOUR MEI/A,LEUCA BUSINESS

TIre B.E.S.T. Series SubscriptionThe B.E.S.T Series (Business Enhancemenr SeriesTraining) provides '-proven training and powerful inspiration from some ofMelaleuca,s mostsuccessfirl leaders. The stories recorded here come straight from the heartYou'll hear touching stories, smarr tips, and advice you can put to use rightaway to help you grow your business. Vith your r z-monthsubscription tothe B.E.S.T Series, you will receive a CD each month for one year. For yourconvenience, this subscription is automatically renewed each year.

7 Critical Business-Building ActivitiesThe 7 critical Business-Building Activities Book which is given to all MarketingExecutives on achieving the status ofDirector gives in-depth training ofthe tried andproven 7 critical Activities that leaders have followed to build succerrfi-rl M"1r1",.r."businesses- You'll hear from some of our top leaders as they present some outstandingtraining on these activities and more. This is a must for every business-builder. ordeithe7 critical Busirress-Building Activities Book with your next product purchase.

LENmIFRoMTHE BEsT

L-35 BUILDING YOUR MELALEUCA BUSINESS LEARN FROM THE BEST

THE METnTEUCA Busrr{ESS C,qRDAtffactive, personalized business cardsidendfy you as a competent business

professional. They make it easy forcustomers, prospecrs and businessassociates to contact you so you stay ontop of your business. Erperrly-printedon standard card stock and the atrractive'Melaleuca:The uTellness Companf"',logo, these cards are valuable business-building tools you shouldnt be without

To protect the integrity andcredlbility of the Melaleuca brand andyou as a MarketingExecutive, thisbusiness card (shown here) is the onlyauthorized design permitted for use byMelaleuca. It is not permissible to createyour own Melaleuca business card oruse the Melaleuca tradename or logos,as stated in Melaleuca's Statement ofPolicies.

Complete the order form on thenext page and fax to rSoo Boo 8o8oor mail to Melaleuca Southeast Asia(Singapore) Pte ltd, ro Eunos Rd 8,

#r4-o3, Singapore Post Cenffe,Singapore 4o86oo.

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.$Fl4l$.-d'@r.: carddesig! is theronlyautho{Gedb*iness crdpmitted by Melaleue sourheast Asiais not petqissibli to create rcur om Melaleuobuiness wd or rr"ih. M"L1*" o"d. n"-. or logo,

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TUE MEr,trpUCA BusTNESS CannOnoEnFoRM

PLEASE PRINT ALL DETAILS CLEARLY AND NEAILY IN CAPITAL LETTERS

Melaleuca ID Number:

Name:

Status: (please include level where applicable) (Note: if status is Ieft blank, the words 'Independent Marketing Executive, will be printed)

BlockJNo., Floor Unit #:

Street Name:

Building/Estate Name: Postal Code:

Country:

Telephone: ( ) Fax: ( )

Mobile: Email:

Special requirements:

SHIPPING DETAILS

( ) If shinning details are identical to the details on your business card above, please tick here.

Name:

Block/No., Floor Unit#:

Street Name:

Building/Estate Name: Postal Code:

Country:

QUANTITY

Pleasetick( )zooO$za.oo

simply copy and fax to I 800 800 1800 or mail to Melaleuca Southeast Asia (singapore) pte Ltd, l0 Eunos Road g,#14-03, Singapore Post Centre, Singapore 40g600

BI']ILDING YOUR MELALEUCA BUSINESS THE MEI.A\TEUCA BUSINESS CARD ORDER FORM

..:..:

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RpcocNrrloN ANID AppnECrAnoN

You work hard to achieve your goals and each new status

- we believe it's important to recognize your effortsand achievements. Each new status you achieve will berecognized by a Certi{icate ofAchievement and each newstafus above Director will also be recognized with a gold pirr,,tThere is also special recognition you mry

"r.r, .,

"rry ri-" i.,

your Melaleuca career: Circle ofln{luence, Expanded Circleof Influence, and t-o f zo Chtb.

As well as pins and certificates to celebrate achievements, weannounce advancements it or:ir Leadership in Actionmagazine.Advancements ofDirector and above are announced withyour photograph, so dont forget to provide us with a photoso that we may share your success with other MelaleucaMarketing Executives.

MONTHLYRXCOGNITIONEnrolling customers is the lifeblood of vour Melaleucabusiness,.and that's why Melaleuca has

"n ongoing program

to reward those dedicated Marketing Executives who enrollfour or more Preferred Customers in any calendar month.Because Melaleuca's products are exceptional products atreasonable prices, and are used by most people on a dailybasis, it's natural to share them with friends and familvBy introducing those in your "Circle ofInfluen."', ,o,h.Preferred Customer Program, they can shop directly fromthe company at our discounted preferred Customer prices. Inaddition, you earn commissions, awards and much d"r"*"drecognition in a company-wide publication.

zo/toClabTo Qualiff Develop zo personally enrolled preferredCustomers.Rewards: Receive a unique zof zo Club lapel pin andrecognition of your achievement will be published in theLeadership in Action magazrne.

FINANCHL FREEDOM AWARDSMelaleuca celebrates and encourages Marketing Executivesto achieve their financial goals. In recognition ofthoseMarketing Executives who have worked hard to reachFinancial Freedom, Melaleuca has established three differentFinancial Freedom awards. Marketing Execufives arerequired to submit an application form, which is availableeither by contacting the Business DevelopmentTeam at +656737 ooSd'

First Step to Financial FreedornAwardGiven to Marketing Executives who use theirMelaleuca earnings to pay off their credit carddebt and lines of credit completely, and committo no longer caryring any kind of ongoing balance

Financial Freedorn Award

FillT.*T:;'::,'fr::ffi''Ti:,"" ffiFhave used their Melaleuca earmngsto pay off everphing except the first mortgage on theirresidence.

often as you wish.Rewards:In addition to the S$r5o COI Bonus, receive a uniquelydesigned Circle oflnfluence lapel pin indicating the numberof times you have achieved this award. plus, youi name willbe published in Leadership in Action magazine.

Circle of IrrfluenceTo Quali$': Enroll four newPreferred Customers in any onecalendar month. you can qualify as

Ercpanded Circle of tr:fluenceIo QualifyEnroll eight new preferred

Customers in any one calendar month.

J@*, + s g r 5o I",# lTTl'.1#_rff"*il,*:. s@p\/ use their Melaleuca earnings ro pay off =::rFall oftheir debt, including the moftgage on their residence.This award comes with a'mortgage burning party'hostedby members of Melaleuca's Senior Management te"m at theresidence of the recipients.

OTHERELITEAWARDSA number ofother achievements are recognized byMelaleuca for monthly promotions, Fast Track compedtions,and special convention awards. For example the prestigiousHalf- Cenrury/Century Awards are presented to ihor.-Marketing Executives who have at least 5o and roo acfivepersonally enrolled customers respectively.

Rewards:Receive an Expanded Circle oflnfluence lapel pin with alarger inner circle indicating th. numb.r oitimes you haveachieved this award. plus, your name will be featured inLeadership in Action magazine.

RECOGNITION AND APPRICLATION BTIILDING YOUR MELALEUCA BUSINESS

F

I

II

STnTEMENT Or PoucrES Ar.rnDETTNITIoNS OrTEnvs

STATEMENT OF POLICIES

Capitalized terms used in the Statement of policies have themeanings set forth in the Definitions of Terms.

Incorporation of Policies into lndependent MarketingExecutive Agreement (IMEA).These policies are incorporated into the MelaleucaIndependent Marketing Executive Application and Agreement.Please read and understand the Statement of Policies. As anIndependent Marketing Executive, you must comply with allthe terms and conditions set forth in the Statement of policies,the Independent Marketing Executive Agreement and theMelaleuca Compensation PIan, as well as honor all applicablelaws and regulations in the Republic of Singapore and inthe countries in which you are permitted to operate yourMelaleuca business.

Purpose of the Statement of Policies is to:(a) define the relationship between Melaleuca and you as aMarketing Executive; (b) set standards of acceptable businessbehavior; (c) assist you in building and protecting yourbusiness.

l. BecomingaCustomerTo become a Customer, a person must (a) have an Enrollerwho has submitted an Independent Marketing ExecutiveAgreement; (b) sign and submit a Customer MembershipAgreement, marking either the "Direct Customer" or"Preferred Customer" box; and (c) pay a membership feefor the cost of enrollment, product information, and otherIiterature that Customers receive throughout the year.Preferred Customers receive a number of additional benefitsand may purchase products directly fiom Melaleuca at30o/o to40% below the suggested retail price. In return for this addeddiscount, Preferred Customers agree to purchase Melaleucaproducts totaling at least 35 Product Points each month.Customers are not authorized to market or resell Melaleucaproducts unless they have also signed and submitted anIndependent Marketing Executive Agreement.

2. Becoming a Marketing ExecutiveTo become a Marketing Executive, a person must: be at least18 years of age and not a minor in the country of residence;be a legal Singapore resident, Permanent Resident and/or a legally competent individual; or a corporation in goodstanding incorporated under the laws of the Republic ofSingapore which have as their sole shareholder(s), director(s)and officer(s) either one unmarried individual or a marriedcouple; or a tax exempt entity which are registered andapproved as a tax exempt institution under the Income Tax Actof the Republic of Singapore, to enter into this contract in the

jurisdiction of the Republic of Singapore; read the MelaleucaStatement of Policies and Definition of Terms; and understandthe Melaleuca Compensation Plan and you must:

*(Q have an Enroller who has submitted an Independent. Marketing Executive Agreement;(b) sign and submit an Independent Marketing Executive

Agreement; and(c) purchase a Business Kit.

Once those steps are completed the applicant is authorized tomarket and resell Melaleuca products and to enroll Customersand Marketing Executives. However, an applicant does notbecome a Marketing Executive, until: (i) Melaleuca receivesthe applicant's Independent Marketing Executive Agreement;(ii) the applicant has a Customer or Marketing Executivein his/her Marketing Organization; and (iii) the applicantreceives his/her first commission. Marketing Executives maybe Preferred Customers, in which case they may purchaseproducts directly from Melaleuca at the Preferred Customerprice.

Melaleuca may in its absolute discretion reject any applicationin which case the applicant shall not be authorized to marketand resell Melaleuca products or to enroll Customers andMarketing Executives and shall not become a MarketingExecutive.

3. Individuals, Corporations and Tirx Exempt EntitiesMelaleuca will only consider for acceptance as MarketingExecutives individuals or entities that fall into one of thefollowing categories: (a) Individuals who are of the legal age.(b) Legally married husband and wife couples of which atleast one is oflegal age. (c) Corporations in good standingincorporated under the laws of the Republic of Singaporewhich have as their sole shareholder(s), director(s) andofiicer(s) either one unmarried individual or a married couple.(d) Tax exempt entities which are registered and approvedas tax exempt institutions under the Income Tax Act of theRepublic of Singapore.

4. Customer NumbersWhen Melaleuca receives and accepts your Enrollmentand Agreement to become a Customer and/or MarketingExecutive, Melaleuca will provide you with a CustomerIdentification Number, which you must quote when placingorders or tracking your commissions and bonuses.

5. Proper Completion of DocumentsAll agreements must be completely and properly filled outand signed; together with a photocopy of the SingaporeNational Registration Identity Card, or Singapore PermanentResident Identity Card or any legal documents to verifi'

BUILDING YOUR MELALEUCA BUSINESS STAfEMENT OF POLICIES AND DEFINANONS OF TERMS

{lE

residential status. NO copies or alterations will be accepted.If any agreement is altered in any way the agreement willnot be deemed accepted by Melaleuca except in its originalunaltered form, regardless of passage of time or payment ofcommissions by Melaleuca. Melaleuca will not be responsiblefor loss of commissions or bonuses or for delays in Customeror Marketing Executive registrations or orders due to: (a)errors by Customers or Marketing Executives in preparing orsending agreements, orders or other documents; (b) delaysor errors caused by the mail or fax transmission; (c) non-receipt of documents by Melaleuca; (d) illegible or incompleteinformation on agreements, orders or other documents; or (e)the inabiliry of Customers or Marketing Executives to reachMelaleuca by telephone or fax. Melaleuca will process and l'.'{credit orders and enrollments in the calendar month in whichthey are received by Melaleuca.

5. OrderingMelaleuca encourages Customers to order early in the month.All orders are credited to the calendar month in which theyare received by Melaleuca. For purposes of product orders,the calendar month ends on the last day of the month andbegins on the first day of the month. Orders may be placed bytelephone, mail, fax or the Internet. All orders must be paidby Visa, MasterCard, Nets, or InterBank GIRO. When payingwith a credit card, the card number and expiration date mustbe included.

Orders for products will usually be processed by Melaleucawithin forty-eight (48) hours of receipt. Shipment will be bycommon carrier and delivery should be expected within three(3) to five (5) working days. Orders placed during the lastweek of the month may be delayed due to the large volume oforders received at the end of the month.

7. Customer Satisfaction GuaranteeIf for any reason any Customer is not completely satisfied withany product purchased by such Customer from Melaleuca,Mela"leuca will replace it without charge or place a credit onthe Customer's Melaleuca account for the amount of thepurchase price of the product or, upon in-person requestfrom the Customer together with a copy of the invoice fromMelaleuca, refund the purchase price (less shipping andhandling charges), upon its return within 60 days of purchase.Unless the Customer requests otherwise, Melaleuca willcredit the Customer's Melaleuca account for the purchaseprice ofthe returned product. This credit can be redeemedfor Melaleuca merchandise at any time. If a Customer hasunredeemed credit on account with Melaleuca which is morethan six months old, Melaleuca will make an effort to locatethe Customer and advise him/her in writing of the credit thatis on account and will continue to make such attempts on amonthly basis. Melaleuca will charge the Customer's accounta S$14 service fee for each month's notification process.

8. Returns and Product Point AdjustmentsCareer/Value Pack Returns: Individual products that arepurchased as part of a Career, Value, or other "special" pack,which is priced below the Preferred Customer price, can bereturned for an exchange but not for a refund unless the entirepack is returned. Career and Value Pack commissions will be

deducted from the Marketing Executive's cheque in thethe Career or Value Pack is returned by the Customer.

Marketing Executives receive commissions based on actualsales of product to End Consumers. When product isto Melaleuca, the commissions attributable to that productbe deducted from the commission cheques of the Customer'sSupport Team in the month that the return occurs. Ifthereturn occurs within 6 months of the purchase date, thencommissions will be deducted from the commission chequesof the Support Team of the Marketing Organization thatexisted at the time of the purchase. Otherwise, commissionswill be deducted fiom the commission cheques of the SupportTeam of the current Marketing Organization.

Melaleuca reserves the right to terminate the IndependentMarketing Executive Agreement or cancel the CustomerMembership Agreement of any Marketing Executive orCustomer who abuses the Melaleuca Satisfaction Guaranteeand Return Policy by excessively returning products.

9. Business Kit RefundWhen a Marketing Executive applicant enrolls and purchasesa Business Kit, the Business Kit number will be registeredat Melaleuca in the applicant's name. If a MarketingExecutive applicant cancels his/her Independent MarketingExecutive Agreement and returns his/her purchased BusinessKit to Melaleuca within sixty (60) days from the date ofdistribution of the Business Kit, Melaleuca will give suchMarketing Executive applicant a full refund for the cost ofthe Business Kit. A refund will only be sent to the MarketingExecutive applicant in whose name the Business Kit numberis registered. This Policy will apply whether the MarketingExecutive applicant purchases the Business Kit directly fromMelaleuca or fiom his/her Enroller. A Marketing Executivewho purchases Business Kits for resale to Marketing Executiveapplicants may return unsold kits to Melaleuca for a refundonly if the Marketing Executive cancels his/her IndependentMarketing Executive Agreement and returns the Business Kitswithin sixty (60) days from the date of distribution of theBusiness Kit. Marketing Executives who purchase BusinessKits for resale may resell such kits for up to one (1) year fromtheir date of purchase fiom Melaleuca. Melaleuca encouragesMarketing Executives to keep such Business Kits updateduntil they are sold. A Business Kit may only be sold once.Melaleuca updates and revises Business Kits from time to time-Marketing Executives are encouraged to keep their BusinessKits current by purchasing update packets or new BusinessKits as they become available. Outdated or o1d Business Kitsmay not be exchanged for current Business Kits.

10. Election to Cancel AgreementsA Marketing Executive may cancel his/her IndependentMarketing Executive Agreement, and a Customer may cancelhis/her Customer Membership Agreement, for any reason atany time by giving written notice to Melaleuca bearing his/heroriginal signature, printed name, address, Customer Numberand reason for canceling (to assist Melaleuca in improvingits customer service). If an individual or entity is a PreferredCustomer and a Marketing Executive, the letter should specifiwhich agreement(s) should be cancelled. Written cancellations

FREOUENIIY ASKID OUESTTONS BUILDING YOUR MELALEUCA BUSINESS

received by Melaleuca on or before the 25th of the month willbe effective the month received. Written cancellations receivedby Melaleuca after the 25th of the month will be effective thefollowing month. Cancellation notices must be mailed to:

Melaleuca Southeast Asia (Singapore) pte Ltd10 Eunos Road 8, #14-03Singapore Post Centre, Singapore 408600

ll. Cancellation Refund PolicyMelaleuca will repurchase from Marketing Executives whohave cancelled their Independent Marketing ExecutiveAgreements all unencumbered products which are in resalablecondition which were purchased by the Marketing Erecutivefrom Melaleuca within the previous 12 months, at a price ofnot less than ninety percent (90%) of the original net costto the Marketing Executive. All products or materials mustbe returned to Melaleuca shipping prepaid by the MarketingExecutive in order to receive the above refund. Melaleuca willcharge back all commissions, bonuses and rebates paid byMelaleuca relating to purchases of those products.

12. Updates of Personal InformationIt is in the interest of both Customers and MarketingExecutives to notif' and update Melaleuca of any changes topersonal information.

13. Errors or QuestionsMarketing Executives should noti$' Melaleuca immediately ofany errors or questions about commissions, bonuses, MonthlyBusiness Reports, orders or charges. Melaleuca will correct anyerrors reported to it within sixty (60) days, but Melaleuca willnot be responsible for any errors, omissions or problems notreported within sixty (60) days.

14. foint Ownership of a BusinessIndependent Melaleuca Businesses may only be owned byan individual, lawfully married husbands and wives, orby corporations or tax exempt entities that comply withMelaleuca guidelines. If a husband and wife who jointlyown an Independent Melaleuca Business divorce, only oneindividual may retain ownership of the business. It is theobligation of the divorced couple to advise Melaleuca of theindividual who shall retain the ownership of the business.These instructions must be in writing, signed by both partiesand include a certified copy of the court approved divorcedecree or property settlement. Melaleuca is not bound by anysuch request or court decree and retains the right to approveor disapprove ofsuch transfer request at its sole discretion. Ifthe transfer is approved, the person to whom the IndependentMelaleuca Business is being transferred must sign andsubmit to Melaleuca a new Independent Marketing ExecutiveAgreement.

15. One Business per Person or Married CoupleA Marketing Executive may not own, operate or have afinancial interest in more than one Independent MelaleucaBusiness without Melaleuca's express written approval. Withregard to married couples, both persons will be treated asa single Marketing Executive for purposes of Melaleuca,spolicies. Therefore, for example, if one person owns an

Independent Melaleuca Business the other person maynot own, operate or have a financial interest in a separateIndependent Melaleuca Business. However, if two people whoown separate Independent Melaleuca Businesses marry, theymay each retain ownership of their businesses, respectively.

16. Conduct of Household MernbersIf any member of the Marketing Executive's ImmediateHousehold engages in any activity which, if performed bythe Marketing Executive, would violate any Melaleuca policyor any provision of the Independent Marketing ExecutiveAgreement, such activity will be deemed a violation by the

u.]$rketing Executive.

17. InheritanceofBusinessAn Independent Melaleuca Business may be inherited by asingle person, a married husband and wife or a trust whichcomplies with Melaleuca's guidelines, pursuant to a validwill or other appropriate document, or in accordance withthe intestacy laws of the country, state or province in whichthe Marketing Executive resides. A person who inherits anIndependent Melaleuca Business must furnish-Melaleuca withproper documentation that he/she is the beneficiary and isauthorized to represent the estate. He/she must also executea Customer Membership Agreement and an IndependentMarketing Executive Agreement, fulfill all of the functions ofa Marketing Executive and abide by the terms of Melaleuca'sStatement of Policies.

18. Sale orTransfer of BusinessBefore a Marketing Executive can sell or transfer his/herIndependent Melaleuca Business (except for transfers byinheritance pursuant to Policy 17) (the "transfer") all ofthefollowing requirements must be met:

(a) The transfer must be approved in writing by Melaleuca as

being in the best interest of all parties involved, includingthe transferor, the transferee, Melaleuca and the membersof the Marketing Organization of the transferor.

(b) The transfer must not constitute the purchase of statusor position by the transferee. The Marketing Executive'sactual status must equal the potential status whichthe Marketing Executive could attain based on his/herOrganization Product Points at the time of the transferand for a reasonable period prior to the transfer, andthe transferor Marketing Executive must have been theactual Enroller of all Personal Enrollees and must havebeen actively involved in working with his/her personaldirectors. Marketing Executives may not contract or agreewith or allow another person to work their IndependentMelaleuca Business to bring it up to its potential statusor offer to sel1 their business to another person on thecondition that such person bring the business up to itspotential status.

(c) Completed original signed and notarized OrganizationSale Request and Organization Purchase Request formsmust be submitted to and accepted by Melaleuca.

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BULDING YOUR MELALEUCA BUSINESS FREOUENTLY ASKID OUESTIONS

(d) The transferee of the business must have completedand submitted to Melaleuca an Independent MarketingExecutive Agreement.

(e) The transferee of the business has undergone, or will agreeto undergo, such training and orientation as Melaleucamay require commensurate with the size of the businessbeing purchased.

(f) The transferor Marketing Executive and the IndependentMelaleuca Business must have been in compliance with allof Melaleuca's policies and the terms of the IndependentMarketing Executive Agreement for the entire twelve ., .ri

month period preceding the transfer including the -onih -

in which the transfer occurs.

(g) Independent Melaleuca businesses that have or have had a

total group volume of 5,000 Product Points or more maynot be transferred to any other party as any such transferwould constitute the purchase of status or position.

(h) The satisfaction of any term or condition that Melaleucamay in its absolute discretion, impose or require inrelation to the transfer.

19. Thansfer from Original OrganizationMarketing Executives and Customers may transfer from oneMelaleuca organization to another only upon fulfillment of allof the following requirements:

The Marketing Executive or Customer seeking theorganization change has submitted an OrganizationChange form with the original signatures of the sevenMarketing Executives in the immediate seven generationsabove the Marketing Executive or Customer seekingthe change. Faxes or photocopies ofthe executedOrganization Change form will not be accepted;

A Marketing Executive seeking the organization changehas no more than 10 Customers in his/her existingMarketing Organization and will have no more than 10

Customers in the Marketing Organization into which he/she is seeking to be moved;

The Marketing Executive or Customer seeking theorganization change has paid to Melaleuca the applicablefee charged by Melaleuca for organization changes;

Melaleuca has approved the change in writing, whichapproval Melaleuca may withhold in its sole discretion.

20. Non-Solicitation and Conflicts of InterestMarketing Executives are independent contractors andmay be active in other business ventures while they areMarketing Executives for Melaleuca. However, to quali$'for compensation under Melaleuca's Compensation plan,

Marketing Executives have the ongoing responsibility toservice, supervise, motivate, train and assist the MarketingExecutives in their Marketing Organizations. They also havethe responsibility to promote Melaleuca products and theMelaleuca income opportunity. Melaleuca and its Marketing

Executives have made a great investment in the establishmetof organizations consisting of Customers and MarketingExecutives. This constitutes one of Melaleuca's most valuableassets.

Melaleuca reserves the right to cease paying compensation toany Marketing Executive who recruits any Melaleucaor Marketing Executive to participate in another businessventure. In order to protect the efforts of all MarketingExecutives in building and maintaining their individualMarketing Organizations and Customer bases, and in orderto protect Melaleuca's interest in the overall Customer base,Marketing Executives and all members of their ImmediateHousehold are required to abide by the following policies:

(a) Non-Solicitation of Melaleuca Customers and MarketingExecutives:

(i) During the period that their Independent MarketingExecutive Agreements are in force MarketingExecutives and all members of their ImmediateHousehold are prohibited from directlS indirectlyor through a third party recruiting any MelaleucaCustomers or Marketing Executives to participate inany other business venture.

(ii) For a period of twelve months after cancellation ortermination for any reason of a Marketing Executive'sIndependent Marketing Executive Agreement, theMarketing Executive and all members of his or herImmediate Household are prohibited from directly,indirectly or through a third party recruitingto participate in any other business venture anyMelaleuca Customers or Marketing Executives: (1)who were in the Marketing Executive's MarketingOrganization or Support Team at any time during theterm of his or her association with Melaleuca; (2) withwhom the Marketing Executive had contact duringthe term of his or her association with Melaleuca;(3) whose contact information (name, address,phone number or email address, etc.) the MarketingExecutive or members of his or her ImmediateHousehold has obtained at any time during the termof his or her association with Melaleuca; or (4) whosecontact information (name, address, phone numberor emaii address, etc.) the Marketing Executive ormembers of his or her Immediate Household obtainedat any time from another person who obtained theinformation because of any other persont associationwith Melaleuca. The prohibitions under clauses(a) (i) and (ii) above include but are not limitedto, presenting or assisting in the presentation ofother business ventures to any Melaleuca Customeror Marketing Executive or implicitly or explicitlyencouraging any Melaleuca Customer or MarketingExecutive to join any other business ventures. Itis a violation of this policy to recruit a MelaleucaCustomer or Marketing Executive to participatein another business venture even if the MarketingExecutive does not know that the prospect is also aMelaleuca Customer or Marketing Executive. It is the

(a)

(b)

(c)

(d)

STAfEMI,NT OI POLICIES BUILDING YOUR MELALEUCA BUSINESS

Marketing Executive's responsibility to first determinewhether the prospect is a Melaleuca Customer orMarketing Executive before recruiting the prospectto participate in another business venture. (pleaserefer specifically to the definition of..recruit', in theDefinitions of Terms at the end of these policies.)

(b) During the period that their Independent MarketingExecutive Agreements are in force, and for a period oftwelve months after the cancellation or terminationthereof for any reason, Marketing Executives and allmembers of their Immediate Household are furtherprohibited from the following: (i) producing anyliterature, tapes or promotional material of any nature(including but not limited to websites and emails) whichis used by the Marketing Executive or any third personto recruit Melaleuca Customers or Marketing Executivesto participate in another business venture; (ii) Selling,offering to sell, or promoting any competing productsor services to Melaleuca Customers; (iii) Offering anynon-Melaleuca products, services or business venturesin conjunction with the offering of Melaleuca products,services or income opportunity or at any Melaleucameeting, seminar, launch, convention, or other Melaleucafunction.

(c) (i) Violation of any provision of this policy 20 constitutesa Marketing Executive's voluntary resignation andcancellation of his/her Independent MarketingExecutive Agreement, effective as of the date ofthe violation, and the forfeiture by the MarketingExecutive of all commissions or bonuses payable forand after the calendar month in which the violationoccurred.

(ii) If Melaleuca pays any bonuses or commissions to theMarketing Executive after the date of the violation, allbonuses and commissions for and after the calendarmonth in which the violation occurred shall berefunded to Melaleuca.

(iii)Melaleuca may seek and obtain from the violatingMarketing Executive both injunctive relief anddamages for violations of this policy 20. Melaleuca,may, at its option, elect to enforce this poliry bylawsuit in a court of competent jurisdiction inSingapore rather than by arbitration.

(iv)In addition to being entitled to a refund of bonusesand commissions and to damages as described above,in the event a person or entity violates this policy20, Melaleuca and any Marketing Executive thatexperiences an adverse financial impact as a result ofsuch person's or entityt violation of this policy 20shall be entitled to an accounting and repayment of allprofits, compensation, commissions, remunerationsor other benefits which the person or entity directlyor indirectly receives and/or may receive as a result of,growing out of, or in connection with any violationof this Policy. Such remedy shall be in addition to andnot in limitation of any damages, or injunctive relief

or other rights or remedies to which Melaleuca is ormay be entitled at law or in equity.

(d) Violations of this Policy 20 are especially detrimentalto the growth and sales of other Marketing Executives,Independent Melaleuca Businesses and to Melaleuca'sbusiness. Consequently, Marketing Executives who haveknowledge that any Marketing Executive has violatedthis Poliry must immediately report that informationto Melaleuca's Policy Administration Department.The failure of a Marketing Executive to report suchinformation to Melaleuca will also constitute a violation

.. _".5 of this Policy. The names of those reporting violations of'' this Poliry 20 will be held in confidence.

21. Proprietary Information and Trade SecretsBy executing the Independent Marketing ExecutiveAgreement, the Marketing Executive acknowledges that allinformation which is contained in the Marketing Executive'sMonthly Business Report, including names, addresses andtelephone numbers of Marketing Executives and Customers,is Melaleuca's proprietary trade secret information. TheMarketing Executive agrees not to disclose such informationto any third party (except to existing or prospective MelaleucaMarketing Executives or Customers for the purpose ofpromoting Melaleuca products and business opportunity)or to utilize such information for the purpose of promotingany other business opportunity at any time, whether duringthe term of his/her association with Melaleuca or thereafter.The Marketing Executive acknowledges that such proprietaryinformation is of such character as to render it unique andthat disclosure or use thereof in violation of this provision willresult in irreparable damage to Melaleuca and to IndependentMelaleuca Businesses. Melaleuca and its Marketing Executiveswill be entitled to injunctive relief to prevent violation ofthis policy. Iflitigation or arbitration is required to obtaininjunctive relief or to recover damages, the prevailing partyshall be entitled to an award oflegal fees and expenses.

22. TheEnroller(a) A Marketing Executive who is the Enroller of a new

Customer or Marketing Executive may not list anotherMarketing Executive who did not participate in thecontact or the presentation as the Enroller of such newCustomer or Marketing Executive. Regardless of where aCustomer or Marketing Executive is placed in a MarketingOrganization, the actual Enroller of such Customer orMarketing Executive must be listed as the Enroller on theCustomer Membership Agreement.

(b) The Enroller and any other Marketing Executives involvedin the recruiting and enrollment process may use onlyMelaleuca's products and its compensation plan andtheir personal commitment to help the new MarketingExecutive build his or her business as an inducement toenroll. Marketing Executives may not enter into specialdeals with an Enrollee, including, but not limited to,promises of the payment of money or roll ups.

BUILDING YOUR MELALEUCA BUSINESS STATEMENT OF POIICIES

23. SupervisoryandLeadership FunctionsMarketing Executives' compensation is based on salesof product to the End Consumer. To quali4' for thiscompensation Marketing Executives have the ongoingresponsibfity to promote the Melaleuca business opportunity,to support Melaleuca's policies, programs and personnel,and to service, supervise, motivate and train the MarketingExecutives in their Marketing Organization to sell andmarket Melaleuca products and promote the Melaleucabusiness opportunity. Any effort by a Marketing Executive toconvince or entice any Customer or Marketing Executive todiscontinue or diminish purchasing Melaleuca products, tomove from one Melaleuca Marketing Organization to another,*to discontinue or diminish efforts to promote the Melaleuca,-business opportunity, or to promote or pursue another directselling opportunity, or to disparage Melaleuca or it's products,marketing plan, management team or other personnel is aviolation of the Marketing Executive's leadership responsibilityand a violation of this poliry.

24. Excess Inventory Purchases ProhibitedThe Melaleuca marketing programme is built upon sales tothe End Consumer. Products representing aI\east7}o/o of aMarketing Executive's monthly Organization Product Pointsmust be sold to End Consumers each month. Any device orscheme whereby a Marketing Executive directly or througha third party purchases excess product solely for purposes ofqualifting for bonuses or commissions constitutes fiaud onthe part of the Marketing Executive.

25. Selling in StoresMelaleuca is in strong support of home-based businessesand personal product presentations. To maintain a standardof fairness, Marketing Executives may not display or sellMelaleuca products in drug stores, health food stores orgrocery stores. Any display of Melaleuca products to thepublic must be tastefirl and professional and is subject to theabsolute discretion of Melaleuca. A Marketing Executive maynot display or sell Nicole Miller products in any qpe of retailsetting.

26. Media InquiriesIt is Melaleuca's policy to have a single spokesperson handleall inquiries from the media and all media relations. Therefore,Marketing Executives may not, for any reason, discuss theirIndependent Melaleuca Business with the media, nor act asspokespersons for Melaleuca nor talk to the media regardingMelaleuca, its Compensation Plan, its products or services. Itis a violation of this poliry to provide any information to themedia, regardless of whether the information is positive ornegative, accurate or inaccurate. All inquiries from the media(whether radio, television, internet or print) must be referredto Melaleuca.

27. Cheques and Monthly Business ReportsCommission and bonus cheques are generally submitted to thebank on or about the 15th day of each month for commissionsand bonuses earned during the previous month. Normalbanking timeframes will apply before the commission willactually be available in the account. Holiday and weekendsmay cause a delay in the payments being credited to theaccount.

Each Marketing Executive qualifiing for a commission orbonus will receive a Monthly Business Report, showing thestatus of each Customer and Marketing Executive in his/her Marketing Organization. The Monthly Business Reportwill show the calculation of the Marketing Executive'scommission and bonus in detail. Marketing Executivesshould use their Monthly Business Report as a tool tomanage, supervise and train the members of their MarketingOrganizations. The information contained in Businessis Melaleuca's proprietary trade secret information, andMarketing Executives are prohibited from disseminating theinformation contained therein. See Poliry 21 for furtherregarding Marketing Executives' obligations with respect tosuch proprietary trade secret information. Each MarketingExecutive is charged a data processing fee for generating andmaintaining computerized Monthly Business Reports.

Commissions and bonuses which failed to be creditedinto the Marketing Executive's designated local bank accountthrough Interbank GIRO will be charged a processing feeof S$25 and will be credited to the Marketing Executive'saccount, which credit may be used towards future purchasesmade by the Marketing Executive. If a Marketing Executive'saccount is inactive and it is necessary to notiE/ the MarketingExecutive of the credit on account, a service charge of S$15will be deducted from the account for each notice sent.

28. Purchases for Other PersonsA Marketing Executive may not order or pay for products forCustomers without such Customer's express authorizationand agreement to reimburse the Marketing Executive forproduct.

29. Restrictions on International MarketingMarketing Executives enrolled in Singapore are authorizedto sell Melaleuca products and to enroll Customers andMarketing Executives in the Republic of Singapore. In allcountries in which Melaleuca or its affiliates are authorizedto conduct business Marketing Executives may only enrollCustomers and Marketing Executives pursuant to Melaleuca'sInternational Sponsorship Program. Marketing Executivesand Customers may not ship or sell Melaleuca productsany international border for the purpose of resale. MarketingExecutives and Customers may not sell, give, transfer, import,export or distribute Melaleuca products or sales aids outsideof the Republic of Singapore, nor provide products to anyindividual who the Marketing Executive or Customer knowsor has reason to believe is exporting products to a countryoutside of the Republic of Singapore.

30. Tiademark, Service Mark and Trade Name RestrictionsCustomers and Marketing Executives may not use, reproduceor disseminate the Melaleuca trade name or logo or anyMelaleuca trademark or service mark except in the use anddissemination of literature published and made availableby Melaleuca and except on stationary and business cardsproduced and authorized by Melaleuca. This includes, butis not limited to, the formatives "Mela" and "Mel," the term"Melaleuca," the leaf and drop logo, and all marks or slogansdesignating products or services offered by Melaleuca.

STATEMINT OT POLICIES BI.IILDING YOUR MELALEUCA BUSINESS

Rules regardingAdvertising, Internet Usage and Sale ofMaterials

(a) Marketing Executives may not:

(i) create, publish, copy, reproduce, sell, use, display ordistribute any literature, audio or video recording,Internet web site, telephone ad message, Internetbulletin board message, mass or bulk email message(including auto-response messages), infomercialor other print, audio, visual or electronic mediawhich represents Melaleuca, its products, services,Compensation Plan or business opportunity otherthan as specifically permitted pursuant to this policyand Melaleuca's Guidelines on Internet Usage or thatwhich is produced by Melaleuca and authorized byMelaleuca for Marketing Executives to publish, coppreproduce, sell, use, display or distribute; (ii) copyor reproduce any materials produced by Melaleucaexcept as specifically permitted pursuant to thispolicy; (iii) record, reproduce, or copy any speech,event, corporate function, training or presentation byany Melaleuca spokesperson, representative, speaker,officer, director or other marketing executives; (iv) usethe Melaleuca name or logo or the name or logo ofany of Melaleuca's products or services in any notice,display, advertisement or promotion, including, butnot limited to, newspaper, magazlne,radio, televisionor Internet or email advertisements, or telephone,Internet or other directories (except a MarketingExecutive may have a directory listing in the followingformat: "Melaleuca Independent Marketing Executive-

[name of Marketing Executive]"); (v) display,advertise or promote Melaleuca's products, servicesor business opportunity at any types of trade fairs,trade shows, fund raising events, expositions, garagesales, flea markets, or any similar event, includingthe use of booths, without the express prior writtenapproval of Melaleuca; (vi) directly or indirectlyoffering Melaleuca's products, services or businesses inconjunction with aryr promotions, products or servicesof another company as a whole or part of a package,and vice versa; (vii) directly or indirectly promotingor offering Melaleuca's products to the public beyondPreferred Customer discounts and any prevailingpromotions and/or marketing packages; (viii)charge for Melaleuca-related meetings performed orarranged by a Marketing Executive except to the extentnecessary to cover the actual out-of-pocket expensesincurred.

Marketing Executives may use websites and emailmessages only in accordance with Melaleuca's Guidelineson Internet Usage as the same are published onMelaleuca's website, and which may be revised andmodified from time to tirne at Melaleuca's sole discretion.Melaleuca will take reasonable measures to publish noticeof any changes to the guidelines on its website, however, itis the Marketing Executives' responsibility to review theseguidelines periodically to be informed of and comply withany changes.

(c) Marketing Executives may only use websites produced byMelaleuca's approved website vendors.

(d) Melaleuca will have the right, in its absolute discretion,to require that any Melaleuca related website be takendown and that any Melaleuca related email message bediscontinued. A Marketing Executive's failure to complywith any provision of this policy may result in forfeitureof commissions and bonuses, fines, and/or in terminationof the Marketing Executive's Independent MarketingExecutive Agreement.

..,{2. Income Claims' Marketing Executives are prohibited from making false,

misleading or inaccurate claims about their or other persons'compensation received under the Melaleuca CompensationPlan. Ii when presenting the Melaleuca business opportunity,a Marketing Executive makes any claim regarding his/hercompensation from Melaleuca, or the potential compensationpayable under Melaleuca's Compensation Plan, the MarketingExecutive must also show the person(s) receiving thepresentation Melaleuca's current Marketing Executives AnnualIncome Statistics sheet.

33. Product Claims and WarrantiesMarketing Executives may not make or suggest any productclaims, weight loss or health benefit claims, or productwarranties other than those published in Official MelaleucaMaterial. Marketing Fxecutives shall not publish or distributeinformation relating to uses of Melaleuca products otherthan those which are set forth in Official Melaleuca Material.Marketing Executives may not utilize Official MelaleucaMaterial, which is approved for use in one country to makeproduct claims or promote Melaleuca products in anothercountry.

34. Ethical Sales PracticesMarketing Executives shall: Conduct themselves in aprofessional, courteous and considerate manner; RepresentMelaleuca products in a sincere and honest manner and willhonor Melaleucars Customer Satisfaction Guarantee; Representthe Melaleuca Compensation Plan only as prescribed byOfficial Melaleuca Material; Become familiar with andutilize sales techniques, Melaleuca's Compensation plan andStatement of Policies, and other materials as prescribed byMelaleuca; Fresent the Melaleuca business opportunity in amanner which is consistent with Official Melaleuca Material;and Provide training, motivation and support to MarketingExecutives in their organization.

Marketing Executives shall not: Engage in any deceptive,unlawfirl, or unethical business or recruiting practice; Engagein any high pressure selling or recruiting practices; Enrollminors or persons who are not capable of making an informeddecision with respect to entering into a Customer MembershipAgreement or Independent Marketing Executive Agreement;Order Melaleuca products for other Customers or MarketingExecutives without the express permission of such persons; orSeek in any way to violate or circumvent Melaleuca's policies.

45 BUILDING YOUR MELALEUCA BUSINESS STAIEMENT OF POLICIES

F-F1ti:

l,

35, PolicyDisclosureRequirementPrior to enrolling a prospective Marketing Executive,Marketing Executives shall provide to and review with theprospective Marketing Executive a current copy of Melaleuca'sStatement of Policies and Definitions of Terms.

36. Voluntary Resignation Due to InactivityIt is the Marketing Executive's responsibility to lead his/her Marketing Organization with the proper example inproduction of Personal Product Points. Without this properexample and leadership, the Marketing Executive will losehis/her right to receive commissions and bonuses from his/her Marketing Organization. Therefore, Marketing Executiveswho produceless ihan the minimum personal product pointi,'+required to maintain their current Active Status during amonth, as set forth in the Compensation Plan, will not receivethe commission or bonus attributable to such status for thesales generated through their Marketing Organization for thatmonth. Failure to meet Personal Product Point requirementsfor two consecutive months constitutes the MarketingExecutive's voluntary resignation. A Marketing Executive whohas voluntarily resigned will lose all his/her Personal Enrolleesand his/her Marketing Organization. The resignation shallbecome effective on the day following the last day of thesecond month of inactivity.

37. ReactivationandRe-enrollmentRequirements(a) When a Marketing Executive who has been deemed to

have voluntarily resigned due to inactivity under policy 36becomes reactivated, he/she will reenter his/her previousMarketing Organization in the first available positionbelow his/her original Marketing Executive other than theposition left vacant by such Marketing Executive.

(b) Former(i) Customers and Marketing Executives with the

Executive Status of Marketing Executive III or below:(1) may re-enroll as new Customers and MarketingExecutives with their original Enroller and theiroriginal Marketing Executive at any time, but eachsuch re-enrollment will constitute a new enrollmentfor the Enroller only if the newly reenrolled Customerhas been cancelled or was inactive for 12 consecutivemonths or longer prior to reenrolling; (2) who havenot been enrolled with Melaleuca for at least theprevious six consecutive months may re-enroll as newCustomers and Marketing Executives with the Enrollerand Marketing Executive of their choice.

(ii) Marketing Executives with the Executive Statusof Director and above: ( l) may re-enroll as newCustomers and Marketing Executives with theiroriginal Enroller and their original MarketingExecutive at any time, but each such re-enrollmentwill constitute a new enrollment for the Enroller onlyif the newly reenrolled Customer has been cancelledor inactive for 12 consecutive months or longer priorto reenrolling; (2) who have not been enrolled withMelaleuca for at least the previous two years mayre-enroll as new Customers and Marketing Executiveswith the Enroller and Marketing Executive of theirchoice.

(c) If a former Customer or Marketing Executive desires tore-enroll in a new Marketing Organization in which anyMarketing Executive in the new Support Team was alsoin his/her previous Support Team, such former Customcor Marketing Executive may re-enroll no sooner thantwelve months following the date that such Support TeauMarketing Executive became inactive in his/her previousMarketing Organization. Any individual involved inthe violation of this policy will be subject to corectivemeasures pursuant to Policy 42, including fines and/or cancellation of his or her Independent MarketingExecutive Agreement.

(d) Former Customers or Marketing Executives who re-enroltpursuant to this Policy 37 will not be eligible to roll uppursuant to Poliry 39.

38, Titles Not ForfeitedA Marketing Executive can lose his/her Marketing Executive IMarketing Executive III, Director, Senior Director, ExecutiveDirector or Corporate Director status and therefore the rightto participate in the corresponding commission and bonusif he/she no longer qualifies for the commission or bonuspertaining to such status. However, as long as a MarketingExecutive remains active, he/she will not forfeit the title of thehighest status he/she has achieved, i.e., once a Director, alwaysa Director, once an Executive Director, always an ExecutiveDirector.

39. Roll Up Policy(a) When a vacancy occurs in a Marketing Organization due

to the inactivity, voluntary resignation or involuntarytermination of a Marketing Executive (a "CancelledMarketing Executive"), each Marketing Executive in thefirst generation below the Cancelled Marketing Executive(a "First Generation Marketing Executive") will have theopportunity to quali$' to roll up into the position of theCancelled Marketing Executive. In order to qualift forsuch roll up, the following requirements must be met:

(i) If the Cancelled Marketing Executive's OrganizationProduct Points were less than 2500 in the CancelledMarketing Executive's first month of inactivity, theFirst Generation Marketing Executive with the highestActive Status in the Cancelled Marketing Executive'ssecond month of inactivity will roll up to the positionof the Cancelled Marketing Executive in the monthfollowing the Cancelled Marketing Executive's secondmonth of inactivity. In the event of a tie, the followingcriteria will be applied, in the order listed, to theFirst Generation Marketing Executives involved inthe tie until the tie is broken: (l) who has the largestnumber of personally enrolled Directors; (2) who hasthe largest number of personally enrolled preferred

Customers; (3) whose Marketing Organization hasthe largest number of Preferred Customers; (4) whoseMarketing Organization has the highest averageProduct Point order per Customer; and (5) who hasthe highest Personal Product Points.

STATEMENT OT POLICIES BUILDING YOUR MELALEUCA BUSINESS

(ii) If the Cancelled Marketing Executive's OrganizationProduct Points were equal to or greater than 2500 inthe Cancelled Marketing Executive's first month ofinactivity, the First Generation Marketing Executivewho has or first attains the status which correspondsto the Cancelled Marketing Executive's OrganizationProduct Points in the first month of inactivity willroll up to the position of the Cancelled MarketingExecutive the month following the month the FirstGeneration Marketing Executive has or attainssuch status, but in no event sooner than the monthfollowing the Cancelled Marketing Executive's secondmonth of inactivity. If two or more First Generation .",",iMarketing Executives quali$' for the roll up in thesame month, the tie will be broken by application ofthe criteria set forth in subparagraph (i) above.

The Enroller of a Cancelled Marketing Executive willinherit the Cancelled Marketing Executive's PersonalEnrollees as follows:

For each Personal Enrollee that is a Customer (withno Marketing Organization) or that had the ActiveStatus of a Marketing Executive and had less than2500 Organization Product Points in the CancelledMarketing Executive's first month of inactivity theEnroller will automatically inherit the PersonalEnrollee in the Cancelled Marketing Executive's thirdmonth of inactivity. (ii) For each Personal Enrolleethat had the Active Status of a Marketing ExecutiveII or above and had less than 2500 OrganizationProduct Points in the Cancelled Marketing Executive'sfirst month of inactivity, the Enroller will inheritsuch Personal Enrollee in the month following themonth the Personal Enrollee has advanced onestatus above the active status the Personal Enrolleehad in the Cancelled Marketing Executive's firstmonth of inactivity. (iii) For each Personal Enrolleethat had Organization Product Points of 2500 ormore in the Cancelled Marketing Executive's firstmonth of inactivity, the Enroller will inherit suchPersonal Enrollee in the month following the monththe Personal Enrollee has advanced one status levelabove the Volume Status that the Personal Enrolleehad in the Cancelled Marketing Executive's firstmonth of inactivity. (iv) If the personal Enrollee hadOrganization Product Points of 50,000 or more or anExecutive Status of Executive Director or higher inthe Cancelled Marketing Executive's first month ofinactivity, the Enroller cannot inherit such personalEnrollee. (v) No Enroller can inherit a personalEnrollee whose Executive Status is higher than his/her own, unless neither has an Executive Status higherthan Director IL

(c) If the Cancelled Marketing Executive had the ActiveStatus of Senior Director or above in his/her last monthof activity and (i) was terminated by Melaleuca for apolicy violation or; (ii) voluntarily resigned or wentinactive while under investigation for a policy violation,the Enroller of such Cancelled Marketing Executive will

continue to receive credit for having a Personal Enrolleewith the same status (Senior, Executive or CorporateDirector) to count towards the Enroller's status fortwelve consecutive months from the month following thetermination or resignation of the Cancelled MarketingExecutive. For each month after the initial twelve months,the Enroller of such Cancelled Marketing Executivewill receive credit for having a Personal Enrollee withthe status (Senior, Executive or Corporate Director)attributable pursuant to the Compensation Plan to theGroup Volume of the Marketing Organization of theCancelled Marketing Executive. However, such creditcannot apply at the same time with respect to twoPersonal Enrollees. Therefore, the credit will expire in thefirst month in which both of the following have occurred:(x) a Personal Enrollee of the Cancelled MarketingExecutive rolls up into the position previously held by theCancelled Marketing Executive, and (y) the Enroller of theCancelled Marketing Executive inherits or has inheritedsuch Personal Enrollee of the Cancelled MarketingExecutive.

To qualift for any roll up or inheritance, the MarketingExecutive who will be receiving the roll up or who willbe inheriting Personal Enrollees must have been incompliance with Melaleuca's policies for the preceding 12

months.

40. Obligations of Independent ContractorsAs an independent contractor, it is a Marketing Executive'sresponsibility to:

(a) Abide by the laws of the Republic of Singapore andregulations pertaining to the acquisition, receipt, holding,selling, distributing or advertising of Melaleuca productsand services and the promotion of the Melaleuca businessopportunity;

(b) At the Marketing Executive's own expense, make, executeor file all such reports and obtain such licenses as arerequired by law or public authority with respect to his/her Independent Melaleuca Business and/or the receipt,holding, selling, distributing or promoting of Melaleuca

Products;

(c) Be solely responsible for declaration and payment of allpersonal income tax, Goods and Services Tax (GST), sales

taxes and fees as may accrue because of the MarketingExecutive's activities in conjunction with his/herIndependent Melaleuca Business;

(d) Supply all of his/her own equipment and roolsfor operating his/her business, such as telephone,transportation, professional services, office equipment,and office supplies; and

(e) Provide his/her own place ofbusiness and determine his/her own work hours.

(d)

BUILDING YOUR MELALEUCA BUSINESS STATEMI,NT OF POL]C]F,S

&ttlFt:{l

i

:.,7

41. Marketing Executives Are Not CorporateRepresentatives

Marketing Executives are not corporate representatives ofMelaleuca and are not authorized to incur any debt, expenseor obligation on behalf of or for Melaleuca nor bind Melaleucato any agreement or contract. Under no circumstancesshall a Marketing Executive express directly or indirectly inany manner that might indicate or suggest influence overcorporate decision, authority or representation.

42. CorrectiveMeasuresA11 of the policies in this Statement of policies, the provisionsof the Independent Marketing Executive Agreement, and anyother agreements entered into by and between Mela.leuca anid.iMarketing Executives are material terms to the agreementbetween Melaleuca and Marketing Executives. A MarketingExecutive's violation of any of the terms and conditions ofany of these agreements or the Statement of policies or anyillegal, fraudulent, deceptive or unethical business conduct bya Marketing Executive may result, at Melaleuca,s discretion, inone or more of the following corrective measures:(a) issuance of a written warning or admonition;

(b) withholding of commission and/or bonus cheques, whichmay be imposed immediately or in the future;

(c) reassignment of all or part of his/her MarketingOrganization;

(d) suspension of his/her Independent Marketing ExecutiveAgreement for one or more months;

(e) cancellation of his or her Independent MarketingExecutive Agreement; or

(f) any other measure expressly stated within any of thepolicies set forth in the Statement of policies or anyprovision of the Marketing Executive Agreement.Marketing Executives agree to cooperate with Melaleucain any investigation including, if requested, by providingall information, documents, and/or a written statement,signed under oath, stating that the Marketing Executivehas not violated and will not violate Melaleuca,s policies.Refusal to do so within a reasonable time periodwill constitute the Marketing Executive,s voluntaryresignation. Melaleuca has the right to withhold froma Marketing Executive all bonuses and commissionsduring the period that Melaleuca is investigating thealleged violative conduct of the Marketing Executive. If aMarketing Executive's Independent Marketing ExecutiveAgreement is cancelled due to a violation preceding theinvestigation, the Marketing Executive wilt not be entitledto any commissions or bonuses withheld by Melaleucaduring the investigation period.

43. Forfeiture of Rights to Bonuses and CommissionsSo long as a Marketing Executive is complying with all policiesand the terms of the Independent Marketing ExecutiveAgreement, Melaleuca is obligated to pay commissions andbonuses to such Marketing Executive in accordance with theCompensation Plan. A Marketing Executive's commissions

and bonuses constitute the entire consideration for all ofthe Marketing Executive's efforts in generating sales, andthe Marketing Executive's right to receive commissionsand bonuses from Melaleuca constitutes the entire valueattributable to the Marketing Executive's MarketingOrganization. Following a Marketing Executive,s resignation"cancellation for inactivity, or voluntary or involuntarycancellation of his/her Independent Marketing ExecutiveAgreement, such former Marketing Executive shall have noright, title, claim or interest to the Marketing Organization.The former Marketing Executive sha1l have no claim forcompensation for the Marketing Organization or for bonusesor commissions stemming from sales generated within or bythe Marketing Organization or for financial freedom bonusamounts held in escrow by Melaleuca. Following voluntary orinvoluntary cancellation of his/her Independent MarketingExecutive Agreement, the former Marketing Executive shallnot hold himself/herself out as a Melaleuca MarketingExecutive and shall not have the right to sell Melaleucaproducts or services.

44. Amendments to Compensation Plan, Statement ofPolicies, and/or Independent Markeiing ExecutiveAgreement

Upon notification to Marketing Executives, Melaleuca may, atits sole discretion, amend the Compensation plan, Statementof Policies, Definitions of Terms and/or the terms of theIndependent Marketing Executive Agreement and any otheragreements entered into by and between Melaleuca and theMarketing Executives. By signing the Independent MarketingExecutive Agreement, Marketing Executives agree to abide byany such amendments. The continuation of an IndependentMelaleuca Business or a Marketing Executive's acceptanceof commissions and/or bonuses from Melaleuca constituteshis/her acceptance of any such amendments. MarketingExecutives will be bound by the most current versions of theCompensation Plan, the Statement of Policies, the Definitionsof Terms, the Independent Marketing Executive Agreementand any other agreements entered into by and betweenMelaleuca and the Marketing Executives.

MEI/,LEUCA DEFINITIONS OF TERMSThe following terms will have the meanings set forth hereinwhen used rn Melaleuca's Statement of policies, CompensationPIan and/or Independent Marketing Executive Agreement andother Official Melaleuca Material.

Active Customer: Any Customer who purchases at least 35Product Points each month.

Active Marketing Executive: A Marketing Executive whopersonally produces the number of product points eachmonth that are required to qualift at his/her Active Status levelpursuant to the Compensation Plan.

Active Status: The development position or leadership statusof a Marketing Executive as of the most recent month end, orbusiness reporting period.

Annual Income Statistics: A summary of income statisticspublished by Melaleuca setting forth information regardingaverage, high and low income received by MarketingExecutives on an annual basis.

STATEMENT OF POLICIES BUILDING YOURMELAIEUCA BUSINESS

Assist: A Marketing Executive who helps another MarketingExecutive to present the Melaleuca programme may bedesignated as the'Assist" on the Independent MarketingExecutive Agreement form. The Marketing Executivedesignated as the "Assist" receives the Value pack and CareerPack commission on the first Value pack or Career pack

ordered by the new Customer or Marketing Executive.

Average Retention Index (ARI): An average of the percentagesof customers remaining in an organization from the past 5enrollment months.

Backup Order: A preselected package of Melaleuca productswhich is automatically shipped to Preferred Customers if theyfail to order the minimum monthly product points agreedupon in their Customer Membership Agreement. Thosewho select the Preferred Customer option in the CustomerMembership Agreement preauthorize Melaleuca to send aBackup Order and to make an automatic withdrawal fromtheir Interbank GIRO account, or a charge to their credit cardto pay for each Backup Order.

Business Kit (Membership Kit): The Melaleuca productand business opportunity information portfolio purchasedby a new Marketing Executive pursuant to the terms of theIndependent Marketing Executive Agreement which includesproduct and marketing information and other OfficialMelaleuca Material.

Compensation Plan: The plan offered by Melaleuca whichsets forth the compensation provided to Marketing Executivesfor the continuing building, promoting, training, motivation,servicing and development of their Independent MelaleucaBusinesses.

Customer: A person who has an Enroller, has completed,executed and delivered to Melaleuca a Customer MembershipAgreement and has paid to Melaleuca the appropriatemembership fee. Customers are either Direct Customers orPreferred Customers.

Customer Mernbership Agreement: The agreement whichmust be completed, signed, received and accepted byMelaleuca before a person may become a Customer.

Customer Number: A unique number assigned by Melaleucato each Customer to facilitate internal record keeping byMelaleuca with respect to the Customer.

CommerciallyResalable Condition: Goods shall be deemed"resalable" under the following guidelines: l) unopened andunused; 2) packaging and labeling has not been altered ordamages; 3) product packaging are in an acceptable conditionthat permits Melaleuca to sell the merchandise at the DirectCustomer price or Preferred Customer price; 4) for productswith no expiry date, it must be returned to Melaleuca within60 days from the date ofthe original order; 5) for productswith an expiry date, it must not elapse within the next sixmonths; 6) for Business Kit, it must contain the current upto date revision; 7) for product, it must contain the currentMelaleuca packaging and labeling; and 8) not valid forpromotional products.

Direct Customer: A Customer who is authorized to purchaseproduct from Melaleuca at Direct Customer prices pursuant toa Customer Membership Agreement.

End Consumer: A person who purchases Melaleuca productsfor the purpose of consuming them rather than for resale tosomeone else.

Nets: Method of payrnent available only in-store. This methodof payment is not a preferred method of payment.

Enroll: To enlist, sponsor or sign up an individual or entityinto a programme or organization.

Enrollee: A Customer or Marketing Executive.

Enroller: The Marketing Executive who is listed on theCustomer Membership Agreement as the enroller. The Enroller

*Iqlrst be the person who introduced the new Customer to-Melaleuca and helped him/her become a Customer or whoplayed an active role in the presentation of Melaleuca productsor business opportunity to the new Customer.

Executive Status: The highest leadership position everachieved with Melaleuca.

Immediate Household: Married couples and persons residingin the same home, and with respect to Marketing Executivesand Customers which are entities (e.g. corporations, taxexempt entities, etc.) rather than individuals, ImmediateHousehold means the shareholders, owners, directors, officers,responsible parties, etc. of such entities and persons marriedto or residing in the same home with persons who areshareholders, owners, directors, ofEcers, responsible parties,etc. of such entities.

Inactive Customer: A Customer becomes inactive if he/shefails to purchase a minimum of 35 Product points for twoconsecutive months.

Inactive Marketing Executiver A Marketing Executivebecomes inactive if he/she fails to personally produce thenumber of Product Points that are required to qualiSz at his/her Active Status level pursuant to the Compensation plan fortwo consecutive months.

Independent Marketing Executive Agreement: The agreementwhich must be completed, signed, received and accepted byMelaleuca as one of the prerequisites to becoming a MarketingExecutive.

Independent Melaleuca Business: The business organizationconsisting of a Marketing Executive and those persons andentities that purchase Melaleuca products or generate sales ofMelaleuca products liom which the Marketing Executive isentitled to receive commissions.

InterBank GIRO: A payment method by which a Customerauthorizes Melaleuca to deduct payment for orders directlyfrom his/her designated local bank account.

International Marketing Executive Agreement: Theagreement between a Marketing Executive and Melaleuca,which if approved, will authorize the Marketing Executive toact as an International Marketing Executive in an internationalmarket in which Melaleuca is or will be authorized to dobusiness.

Marketing Executive: A person who has an Enroller,has completed, executed and delivered to Melaleuca anIndependent Marketing Executive Agreement, has purchased

BUILDING YOURMELALEUCA BUSINESS STAIEMENT OF POIIC]ES

a Business Kit, has at least one Customer and has received his/her first commission cheque.

Marketing Organization: The Customers and MarketingExecutives that comprise the group of individuals or entitiesfrom which the Marketing Executive is entitled to receivecommissions based upon the collective sales volume of thegroup and the status of certain Marketing Executives withinthe group pursuant to the Plan of Compensation.

Melaleuca: Melaleuca Southeast Asia (Singapore) pte Ltd

Melaleuca International Sponsorship Program: Theprogramme offered by Melaleuca whereby MarketingExecutives of one country who have signed an InteriationjittIndependent Marketing Executive Agreement may sponsor theenrollment of Customers and Marketing Executives in foreigncountries where Melaleuca is authorized to do business.

Monthly Business Reports: Reports produced by Melaleucaon a monthly basis and provided to Marketing Executiveswhich contain information relating to the activity of theMarketing Executive's Marketing Organization. The MonthlyBusiness Reports contain trade secret information that ispropdetary to Melaleuca.

Official Melaleuca Material: Material in any form whichis authorized, published, and disseminated by Melaleuca.This includes, but is not limited to, printed material, audioand video tapes, satellite broadcasts, fax and electroniccommunications and Internet communications.

Organization Product Points: The total Product pointsattributable to Melaleuca products which a MarketingExecutive's Marketing Organization purchased or producedin a calendar month, including the Marketing Executive'sPersonal Product Points.

Organization PCs: The total net Preferred Customers in aMarketing Executive's organization in a given month.

PEGVolume: Personal Enrollee Group (pEG) Volume isthe total organization Product Point volume of a MarketingExecutive's Personal Enrollees in any given month.

Personal Product Points: The total monthly product pointspersonally produced by a Marketing Executive.

Personal Customerl A person who purchases product directlyfrom Melaleuca using a Marketing Executivet accountnumber.

Personal Enrollee: An Enroller's Enrollee to whom theEnroller has personally introduced Melaleuca and/or hasplayed an active roll in the presentation of Melaleuca productsor business opportunity.

Personal Director: A Personal Enrollee with the active statusof Director or above.

Personal Sales: Sales which a Marketing Executive makes to aPersonal Customer.

Preferred Customer: A Customer who is authorized topurchase products from Melaleuca at Preferred Customerprices and who has committed to purchase each monthproducts totaling at least 35 Product Points.

Product Points: A value assigned to each Melaleuca productservice upon which commissions and bonuses are calculated-

Product Point Production: To produce Product Points aMarketing Executive must create sales to end consumersother than customers in the Marketing Executive's MarketingOrganization. These sales must be products the consumeractually desires or needs as opposed to enticing consumersto purchase products in order for the Marketing Executive toqualifi' for a commission.

Recruit: 1 ) To attempt to enroll, enlist, or solicit an individualor entity to join a business, progrzrmme or organization; or 2)to attempt to promote, influence or encourage an individualor entity to join a business, programme or organization;or 3) to present, or participate or assist in the presentationof, a business, programme, organization or its products.To constitute recruiting, such efforts or attempts may beperformed either directly through personal contact orindirectly through a third party.

Statement of Policies: The policies published by Melaleuca,as amended from time to time, which set forth, amongother things, the requirements for operating an IndependentMelaleuca Business.

Support Team: The Marketing Executives above an individualin a Marketing Organization who have the potential tocommissions based upon the purchases of such individual.

Volume Status: AII advancements in status of Director II orabove require a minimum volume of Organization productPoints. The status corresponding to each required volume inthe compensation plan is the Volume Status.

Words importing the masculine shall include the feminineand vice versa, and words importing persons shall includecompanies and corporations.

If any one or more of the provisions contained in theCustomer Membership Agreement, Independent MarketingExecutive Agreement and Statement of Policies and Definof Terms shall be found by any court of competent jurito be invalid, illegal or unenforceable in any respect under anyapplicable laq the validiry legality and enforceability of theremaining provisions contained in the Customer MembershipAgreement, Independent Marketing Executive Agreement andStatement of Policies and Definitions of Terms shall not inway be affected or impaired and the Customer MembershipAgreement, Independent Marketing Executive Agreement andStatement of Policies and Definitions of Terms shall continueto be in force.

No waiver, or any failure or delay on the part of Melaleucato exercise any right power or privilege under the CustomerMembership Agreement, Independent Marketing ExecutiveAgreement and Statement of Policies and Definitions of Termsshall operate as a waiver of any subsequent breach or defaultof the same or similar nature nor shal1 any single or partialexercise of any such right, power or privilege preclude anyother or further exercise thereof or the exercise of any otherright, power or privilege.

STATEMENT OF POLICIES BUILDING YOUR MELALEUCA BUSINESS

MEr-,qrEUCA GUInEUNESoN ITquRNETUs,tcE

l. Lead-Generating Web Ads, Websites, and EmailsMarketing Executives may maintain web advertisementsand websites for the purpose of generating leads of potentialcustomers, and Marketing Executives may send one or moreemails in response to persons who request informationthrough their lead generating websites, provided that suchwebsites and responsive emails are in compliance withMelaleuca's guidelines. Spam or unsolicited emails are notpermitted. The general standard for such websites and emailmessages is that they should be conservative and appropriateto the promotion of quality products and a professionallyoperated business. The following provisions are designed toprovide guidance and to ensure that standard is maintained.

a) Lead-generating ads, and websites, and emails must:

i) contain the Marketing Executive's first and lastlegal name and direct email address to contact theMarketing Executive.

ii) be professional looking, product oriented and useprofessional business language, avoiding "hype."

b) Lead-generating ads, websites, and emails may:

i) solicit the reader's interest in high-quality, safe andeffective nutritional, personal care, cosmetic andhousehold cleaning products from a catalogue.

ii) solicit the reader's interest in a home-based businessopportuniry

iii) contain a "member's login" section to access the SiteOwner's Tlaining and Information website/pages.(1) This link/login section MAY NOT refer to any

Melaleuca term, phrase or title, and may not becalled "Melaleuca Login."(a) This link may be called "Members Login,"

etc., and must follow all other guidelines forlead- generating websites.

iv) contain a link to the current of6cial version ofthe DeliveringWellness presentatron in the formatprovided by Melaleuca to be used only for trainingpurposes or for facilitatin glive Delivering Wellnesspresentations.(1) This link must be username/password enabled(2) This link must not refer to any Melaleuca term,

phrase or title and may not be called.DeliveringWellness presentation'.

(3) This link may be called'presentation,'.BusinessPresentation' etc and must follow atl otherguidelines for lead-generating websites.

c) Lead-generating ads, websites and emails may not:

i) identifr Melaleuca's product or income opportunityin any manner, or be identifiable by the general

. public as being Melaleuca related.

ii) contain the word'Melaleuca' or the 'Leaf and Drop'Iogo.

iii) contain any of Melaleuca's trademarked words

:,.,."1, or phrases or product names.

iv) contain any of Melaleuca's copy'righted materials orsummaries of copyrighted materials.

v) describe Melaleuca's products, services, revenuesharing programme or business opportunity.

vi) contain any statements or claims about income.

vii) contain any statements about Melaleucat retentionor reorder rate, or any other factors unique toMelaleuca.

viii) contain any description about Melaleuca's awards,track record, management, affiliations or history.

ix) contain any promises or representations aboutplacement within a marketing organization, thata "down line" or organization will be built for thenew enrollee, or that this is a business in which littleeffort is required.

x) contain any enrollment or registration forms(whether online or in printable format).

xi) request payment of money in any form.

xii) request credit card or bank accoun information.

xiii) be identifiable through any search engine by usingthe search word'melaleuca'or any derivation thereof(including'mela') or any other of Melaleuca'strademarked words or phrases or the names of anyMelaleuca products or services.

xiv) promote or offer any other products, services, orbusiness opportunities.

xv) offer for a fee any web page hosting services orother web-related services, Internet usage trainingor services, or any other training or materials of anykind.

xvi) contain any banners, pop ups or jump sites.

xvii) refer the reader to any pre-recorded phone messageor other tlpe of communication that contravenesany of these rules.

xviii) contravene any state or federal law, applicableInternet service provider rules or regulations,or any other Melaleuca policy.

d) Any enrollment involving a potential customer that isidentified from a lead-generating ad or website or emailmust include a one-on-one, face-to-face or vocal (ie,telephonic or Internet-based call) presentation betweenthe Enroller and the Enrollee prior to the enrollment.

5T CUIDELINES ON INTERNET BUILDING YoUR MELALEUCA BUsINEss

e) Emails may be used to determine the quality of the lead,

but such emails may only be sent in response to directrequests for more information and must comply with all

of the foregoing guidelines.

f) All email messages to potential customers must complywith all state and federal law and with applicable Internetservice provider rules and must contain an "opt out"button prominendy displayed on the first screen page ofthe message.

2. Training and Information WebsitesA Marketing Executive may maintain a website for thepurpose of providing business-related information and 's'-tr

training on business building activities to his/her Melaleuca

Marketing Organization. The general standard for such

websites is that they should be appropriate to a professionally

operated business. The following provisions are designed toprovide guidance and ensure that standard is maintained.

(a) Training and information websites must be 100o/o

password protected (meaning that no portion of the site

can be accessed by any means other than a password)

and available for viewing only by Melaleuca MarketingExecutives and Customers.

i) Password protocol may be determined by the

Website owner, as to whether there is a'blanket,generic'password for all invited guests; or unique,

individually managed usernames and passwords.

ii) If a link to the DeliveringWelhess presentationis included in the 'home' page of a training and

information website, the D elivering Wellness

presentation must have a separate username andpassword than the rest of the site.

(b) Training and information websites may:

i) contain Melaleuca trademarked words or phrases orproduct names.

ii) contain truthful and accurate Melaleuca product and

business stories from the owner of the site and otherMarketing Executives

provide information about Melaleuca corporate ormarketing organization meeting dates and locations.

contain business- and product-oriented bulletinboards, provided the content is closely monitoredby the site owner to ensure that it complies withMelaleuca's policies.

provide information and training about business-

building strategies (including the'Seven CriticalBusiness Building Activities,' how to optimise the use

of the Internet, etc.).

vi) recognise the achievements and advancements ofMarketing Executives within the website ownet'sorganization.

vii) contain one or more jump sites to Melaleuca's

official website.

viii) contain a current official version of the DeliteringWellness presentation in the format provided

by Melaleuca to be used only for trainingpurposes or for facilitatin glive Delivering Wellness

presentations.

Tiaining and information websites may not:

i) be used for the purpose of soliciting new customers

ii) provide information about Melaleuca's products orrevenue sharing programme (other than personal

product and business messages).

iii) contain any statements or claims about income.

iv) contain anypromises or representations aboutplacement within a marketing organization, thata'down line'or organization will be built for a

Marketing Executive, or that this is a business

in which little effort is required.

contain any enrollment or registration forms, excqtr

that the website may contain a jump site

to Melaleuca's Customer Membership Agreement

and Independent Marketing Executive Agreement

forms contained on Melaleuca's official website.

promote or offer any other products, services

or business opportunities.

offer any materials or services for a fee, includingbut not limited to any web page hosting services orother web-related services, Internet usage trainingservices, lead generation services or training services

or materials.

vii) contain any banners, pop-ups or jump sites to any

third party websites.

ix) offer for sale any Melaleuca logo gear; however,

they may offer for sale the logo gear of a particularmarketing organization provided it is sold at actual

cost.

3. Sale of Products or Business Opportunity on the InternefMarketing Executives and Customers may not offer

products or the income opportunity for sale via the Internet(including through eBay or any other method).

4. Pre-recorded Audio or Video Messages

Marketing Executives may not create, publish, produce,

use or maintain, either directly or indirectly, any audio

or video recording which has the purpose or effect ofcreating interest in, introducing or presenting Melaleuca,

its products or income opportunity, regardless ofwhetherMelaleuca is actually mentioned in the recording. However,

prerecorded training messages that are available only toMarketing Executives, are protected by pass code and comply

in all respects with Melaleuca's policies and guidelines are

permissible.

5.ViolationsA Marketing Executive's violation of Melaleuca's Internetusage guidelines and policies may result in the forfeitureof commissions and bonuses, fines, or termination of the

Marketing Executive's Independent Marketing Executive

Agreement.

(c)

vi)

vii)

iii)

iv)

v)

BUILDING YOUR MEI.A,LEUCA BUSINESS GIITDELINES ON INTERNET

FnEeUENTIY As r<En QUE srroNrsT.VALUE/ CAREER PACKSWhen may I purchase a Value Pack or Career pack?

You may purchase two Value Packs or two Career packs andtwo Nicole Miller Value Packs in any combination during yourfirst two full calendar months following the month of yourenrollment.

2. MEIj,LEUCA GUARANTEEOne of my customers needs a refund. How do they getreimbursed from Melaleuca?Provide us, in writing, the following information regardingthe refund along with the returned product: customers IDnumber, customer's name, address and phone number, item(s)returned, a copy of the invoice, and indicate whether you wantcredit on account, refund or product replacement.

If I order a product and find it doesrt't work to mysatisfaction, what do I need to do?

Return the product to our return address listed on the packagewithin 60 days, along with your name, ID number, a copy ofthe invoice, and instructions as to how you would like thereturn handled. You can replace the product, receive credit onaccount, or get a refund.

If I return product for credit on account, how do I access thiscredit?

Just ask the Wellness Representative taking your orderifyou have credit on account. You can use your entire credittowards the purchase of any Melaleuca product; however,purchases paid for with your credit will not count towardsyour Product Point requirement.

3. ENROLLING PREFERRED CUSTOMERSWhat are the benefits of enrolling new customers?Consistent enrollments make your organization grow.You also receive a Product Introduction Bonus on yourenrollees'first calendar month orders up to 150 ProductPoints. For enrollers to quali$' for the Product IntroductionCommission, the enrollee must place an order in the firstmonth. If the enrollee receives any variety of Backup Orderor Select Pack in the first month of enrollment, no ProductIntroduction Commission witl be paid.

How do I enrol a new customer?Fill out the Customer Membership Agreement completely,including correct use of numbers, shipping and mailingaddresses, and phone numbers. Include account informationand the required signatures. Call the enrollment line - I 800800 8080 , then mail the completed paperwork to Melaleuca orbring the paperwork to the corporate ofEces.

Is it possible for someone else to be set up on my credit cardas a Preferred Customer?No. Each customer or Marketing Executive must have anaccount of which he or she is the owner and is authorised to

withdraw funds. Using your own Interbank GIRO account orcredit card to enrol someone may be cause for termination.

If I do not have a Interbank GIRO account or credit card, canI enrol as a Preferred Customer?No. Either a Interbank GIRO account or credit card is,neb€ssary.

I want my new enrollees to receive the Preferred Customerdiscount. Can they order products if their paperwork has notyet been received by Melaleuca?They can place an order with a credit card or by direct debitbefore their paperwork is received. We give all customers thePreferred Customer price on their first order. After that, weneed to receive the paperwork for the Preferred Customerdiscount to continue.

4. BUILDING YOUR ORGANIZATIONHow do I place new enrollees in my organization?You are allowed to "manage" five customers or MarketingExecutives on your first generation. We do not tell you how tostructure your organization; we recommend discussingall business-building strategies with your enroller and supportteam.

Who is my Marketing Executive?The first person in your support team. Your MarketingExecutive and your enroller are your primary resourcesin building your business.

Whom do I put down as'enroller'on the CustomerMembership Agreement?The enroller is the customer or Marketing Executive whointroduces someone to Melaleuca and helps them become a

customer or Marketing Executive.

May I have an interest in more than one Melaleuca business?No. You may only have ownership or ownership affiliation inone Independent Melaleuca Business.

5. CHANGES INYOUR BUSINESSHow do I change the Preferred Customer information on myagreement form?With a simple call to our Business Development on+65 6737 0020. Some items do require the submission ofa new Customer Membership Agreement form. A BusinessDevelopment Specialist can give you greater detail at the timeofyour call.

Can I'move'a new personal enrollee?Yes. An enroller can move a personal enrollee to a differentposition within the month of enrollment by submittingan amended Customer Membership Agreement form. Anenroller also can move a personal enrollee within his/herbusiness organization up to two months following the monthof enrollment by submitting to Business Development a

E-

53 FRIQUENTTYASKID OUESTIONS BUILDING YOT'R MELAIEUCA BUSINESS

New Enrollee Change Form with the enroller's signature.

Every business or customer below the customer or MarketingExecutive being moved will follow the enrollee. The requested

move is limited to 20 businesses/customers. The applicablechange fee will be charged for each Customer or MarketingExecutive moved in the organization.

May I move someone within my organization?Melaleuca discourages organization changes. Melaleuca willreview organization change requests with written consent

of all seven support team members above the customer arl i']b

or Marketing Executive that would like to be moved. AnOrganization Change Form with original signatures is

required. Both the person being moved and the enroller need

to sign the form. There is a fee of S$70 for the original move

and S$20 for any related moves. An Organization Change

Form must be completed for each person being moved. The

requested move is limited to l0 businesses/ customers. To have

changes done for S$20, all related forms must arrive together.

We suggest you work closely with a Business Development

Specialist when undertaking this tlpe of request for change.

What happens to the structure of my organization if someone

goes inactive?A customer is "inactive" if she did not purchase a minimumof 35 Product Points. If a customer goes inactive for twoconsecutive months, she automatically loses her position in the

organization. Refer to the Statement of Policies, #39,'Roll UpPolicy' for furlher clarifi cation.

A Marketing Executive in my organization has not personallyproduced the required Product Points for the past twomonths. Is there any way to keep him from losing hismarketing organization?Two months without producing their Product Point minimummeans automatic loss of their marketing organization,

What will happen to a customer who was inactive for twoconsecutive months and places an order for 35 Product Points

in the third month?Because he purchased in the third month, he will reactivate

back into the original organization in the first available

position under his original Marketing Executive.

How can I change my payment information?Fill out, sign and return to Melaleuca, a new CustomerMembership Agreement.

Someone in my organization discontinued his PreferredCustomer status. Can he still purchase products?He can still purchase directly from the company as a DirectCustomer and have his products delivered to him. DirectCustomers pay the regular price instead of the 30olo to 40o/o offthe regular price for a Preferred Customer. Direct Customerswill not maintain an organizational spot in your marketingorganization unless they produce the minimum Product Pointrequirement.

Is my Melaleuca business inheritable?Yes, you can will your business (see Policy #17). These

transfers must be approved by Melaleuca, Inc.

6. MONTHLY BUSINESS REPORTS

Who receives a Monthly Business Report?

A11 Marketing Executives who have at least one active

customer and have earned a commission and bonus cheque

will receive a Monthly Business Report that details the activitywithin their organization. This is an extremely valuable

document for building and reviewing business activity.

When do I receive my Monthly Business Report?

Monthly Business Reports are mailed on the 17th of each

month (if the 16th falls on a weekend or holiday, the Business

Reports are mailed the following business day). If you have notreceived your Business Report by the 26th of the month, call

Business Development on +65 6737 0020'

For what time period are commission and bonuses paid?

Commissions and bonuses are calculated on product sales

volume from the first through the last day of the calendarmonth.

Will I receive a Monthly Business Report every month?

If you do not earn a commission in a given month, you willnot receive a report.

What are Value Pack and Career Pack bonuses?

These bonuses are earned from the sale ofValue Packs and

Career Packs andNicole Miller Skin CareYalue Packs to new

Marketing Executives. These bonuses are paid to the enroller(or the assist, if one is listed on the Independent MarketingExecutive Agreement form).

BUILDING YOUR MELALEUCA BUSINESS FREOUENTLY ASKED QUESTIONS