Fuel Legacy International

Fuel Legacy International

STATEMENT OF POLICIES

and

PROCEDURES

1.1 - Policies and Compensation Plan Incorporated into Distributor Agreement

These Policies and Procedures, in their present form and as amended at the sole discretion of Fuel Legacy International, Inc. (hereafter “Fuel Legacy International” or the “Company”), are incorporated into, and form an integral part of, the Fuel Legacy International Distributor Agreement. Throughout these Policies, when the term “Agreement” is used, it collectively refers to the Fuel Legacy International Distributor Application and Agreement, these Policies and Procedures, the Fuel Legacy International Marketing and Compensation Plan, and the Fuel Legacy International Business Entity Application (if applicable). These documents are incorporated by reference into the Fuel Legacy International Distributor Agreement (all in their current form and as amended by Fuel Legacy International). It is the responsibility of each Distributor to read, understand, adhere to, and ensure that he or she is aware of and operating under the most current version of these Policies and Procedures. When sponsoring or enrolling a new Distributor, it is the responsibility of the sponsoring Distributor to ensure that the applicant is provided with, or has online access to, the most current version of these Policies and Procedures and the Fuel Legacy International Marketing and Compensation Plan prior to his or her execution of the Distributor Agreement.

1.2 - Purpose of Policies

Fuel Legacy International is a direct sales company that markets its products through Independent Distributors. It is important to understand that your success and the success of your fellow distributors depends the integrity of the men and women who market our products and services. To clearly define the relationship that exists between Distributors and Fuel Legacy International, and to explicitly set a standard for acceptable business conduct, Fuel Legacy International has established the Agreement.

Fuel Legacy International Distributors are required to comply with all of the Terms and Conditions set forth in the Agreement which Fuel Legacy International may amend at its sole discretion from time to time, as well as all federal, state, and local laws governing their Fuel Legacy International business and their conduct. Because you may be unfamiliar with many of these standards of practice, it is very important that you read and abide by the Agreement. Please review the information in this manual carefully. It explains and governs the relationship between you, as an independent contractor and the Company. If you have any questions regarding any policy or rule, do not hesitate to contact Fuel Legacy International

1.3 - Changes to the Agreement

Because federal, state, and local laws, as well as the business environment, periodically change, Fuel Legacy International reserves the right to amend the Agreement and its prices in its sole and absolute discretion. By signing the Distributor Agreement, a Distributor agrees to abide by all amendments or modifications that Fuel Legacy International elects to make. Amendments shall be effective upon notice to all distributors that the Agreement has been modified. Notification of amendments shall be published in official Fuel Legacy International materials. The Company shall provide or make available to all distributors a complete copy of the amended provisions by one or more of the following methods: (1) posting on the Company’s official web site; (2) electronic mail (e-mail); (3) inclusion in Company periodicals; (4) inclusion in product orders or bonus checks; or (5) special mailings. The continuation of a Distributor’s Fuel Legacy International business or a Distributor’s acceptance of bonuses or commissions constitutes acceptance of any and all amendments.

1.4 - Delays

Fuel Legacy International shall not be responsible for delays or failures in performance of its obligations when performance is made commercially impracticable due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, riot, war, fire, death, curtailment of a party’s source of supply, or government decrees or orders.

1.5 - Policies and Provisions Severable

If any provision of the Agreement, in its current form or as may be amended, is found to be invalid, or unenforceable for any reason, only the invalid portion(s) of the provision shall be severed and the remaining terms and provisions shall remain in full force and effect and shall be construed as if such invalid, or unenforceable provision never comprised a part of the Agreement.

1.6 - Waiver

The Company never gives up its right to insist on compliance with the Agreement and with the applicable laws governing the conduct of a business. No failure of Fuel Legacy International to exercise any right or power under the Agreement or to insist upon strict compliance by a Distributor with any obligation or provision of the Agreement, and no custom or practice of the parties at variance with the terms of the Agreement, shall constitute a waiver of Fuel Legacy International’s right to demand exact compliance with the Agreement. Waiver by Fuel Legacy International can be effectuated only in writing by an authorized officer of the Company. Fuel Legacy International’s waiver of any particular breach by a Distributor shall not affect or impair Fuel Legacy International’s rights with respect to any subsequent breach, nor shall it affect in any way the rights or obligations of any other Distributor. Nor shall any delay or omission by Fuel Legacy International to exercise any right arising from a breach affect or impair Fuel Legacy International’s rights as to that or any subsequent breach.

The existence of any claim or cause of action of a Distributor against Fuel Legacy International shall not constitute a defense to Fuel Legacy International’s enforcement of any term or provision of the Agreement.

SECTION 2 - BECOMING A DISTRIBUTOR

2.1 - Requirements to Become a Distributor

To become a Fuel Legacy International Distributor, each applicant must:

Be of the age of majority in his or her state of residence;
Reside in the United States or U.S. Territories or country that Fuel Legacy International has officially announced is open for business;
U.S. residents must have a valid Social Security or Federal Tax ID number. Other tax identification numbers may be required for distributors residing in other countries;
Purchase a Fuel Legacy International Starter Kit (not applicable in North Dakota);
Submit a properly completed Distributor Application and Agreement to Fuel Legacy International; and
U.S. residents must have internet access and a valid e-mail account.

2.2 - No Product Purchase Required

No person is required to purchase Fuel Legacy International products, services to become a Distributor. In order to familiarize new Distributors with Fuel Legacy International products, services, sales techniques, sales aids, and other matters, the Company requires that they purchase a Starter Kit (not applicable in North Dakota). Fuel Legacy International will repurchase resalable kits from any Distributor who terminates his or her Distributor Agreement pursuant to the terms of Section 7.3.

2.3 - Distributor Benefits

Once a Distributor Application and Agreement has been accepted by Fuel Legacy International, the benefits of the Marketing and Compensation Plan and the Distributor Agreement are available to the new Distributor. These benefits include the right to:

· Sell Fuel Legacy International products and services;

· Participate in the Fuel Legacy International Marketing and Compensation Plan (receive bonuses and commissions, if eligible);

· Sponsor other individuals as Customers or Distributors into the Fuel Legacy International business and thereby, build a marketing organization and progress through the Fuel Legacy International Marketing and Compensation Plan;

· Receive periodic Fuel Legacy International literature and other Fuel Legacy International communications;

· Participate in Fuel Legacy International-sponsored support, service, training, motivational and recognition functions, upon payment of appropriate charges, if applicable; and

· Participate in promotional and incentive contests and programs sponsored by Fuel Legacy International for its Distributors.

SECTION 3 - OPERATING A Fuel Legacy International BUSINESS

3.1 - Adherence to the Fuel Legacy International Marketing and Compensation Plan

Distributors must adhere to the terms of the Fuel Legacy International Marketing and Compensation Plan as set forth in official Fuel Legacy International literature. Distributors shall not offer the Fuel Legacy International opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically set forth in official Fuel Legacy International literature. Distributors shall not require or encourage other current or prospective Customers or Distributors to participate in Fuel Legacy International in any manner that varies from the program as set forth in official Fuel Legacy International literature. Distributors shall not require or encourage other current or prospective Customers or Distributors to execute any agreement or contract other than official Fuel Legacy International agreements and contracts in order to become a Fuel Legacy International Distributor. Similarly, Distributors shall not require or encourage other current or prospective Customers or Distributors to make any purchase from, or payment to, any individual or other entity to participate in the Fuel Legacy International Marketing and Compensation Plan other than those purchases or payments identified as recommended or required in official Fuel Legacy International literature.

3.2 - Advertising

3.2.1 - General

All Distributors shall safeguard and promote the good reputation of Fuel Legacy International and its products. The marketing and promotion of Fuel Legacy International, the Fuel Legacy International opportunity, the Marketing and Compensation Plan, and Fuel Legacy International products shall be consistent with the public interest, and must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices.

To promote both the products and services, and the tremendous opportunity Fuel Legacy International offers, Distributors must use the sales aids and support materials produced by Fuel Legacy International The rationale behind this requirement is simple. Fuel Legacy International has carefully designed its products, product labels, Marketing and Compensation Plan, and promotional materials to ensure that each aspect of Fuel Legacy International is fair, truthful, substantiated, and complies with the vast and complex legal requirements of federal and state laws. If Fuel Legacy International Distributors were allowed to develop their own sales aids and promotional materials (which includes Internet advertising), notwithstanding their integrity and good intentions, the likelihood that they would unintentionally violate any number of statutes or regulations affecting a Fuel Legacy International business is almost certain. These violations, although they may be relatively few, would jeopardize the Fuel Legacy International opportunity for all Distributors.

Accordingly, Distributors must not produce their own literature, advertisements, sales aids and promotional materials, or Internet web pages.

3.2.2 - Distributor Web Sites

If a Distributor desires to utilize an Internet web page to promote his or her business, he or she may only do so through the Company’s official web site, using official Fuel Legacy International templates. No distributor produced websites are permitted.

3.2.3 - Domain Names and Email Addresses

Distributors may not use or attempt to register any of Fuel Legacy International’s trade names, trademarks, service names, service marks, product names, the Company’s name, or any derivative thereof, for any Internet domain name or email address.

3.2.4 - Trademarks and Copyrights

Fuel Legacy International will not allow the use of its trade names, trademarks, designs, or symbols by any person, including Fuel Legacy International Distributors, without its prior, written permission. Distributors may not record Company events, speeches, conference calls, leadership calls, or any other event or function, whether such event is in person, on the internet, via telephone, or presented through any other live or recorded medium.

3.3 - Media and Media Inquiries

Distributors must not attempt to respond to media inquiries regarding Fuel Legacy International, its products or services, or their independent Fuel Legacy International business. All inquiries by any type of media must be immediately referred to Fuel Legacy International’s Corporate Communications Department. This policy is designed to assure that accurate and consistent information is provided to the public as well as a proper public image.

3.4 - Unsolicited Email

Fuel Legacy International does not permit Distributors to send unsolicited commercial emails unless such emails strictly comply with applicable laws and regulations including, without limitation, the federal CAN SPAM Act. Any email sent by a Distributor that promotes Fuel Legacy International, the Fuel Legacy International opportunity, or Fuel Legacy International products and services must comply with the following:

i. There must be a functioning return email address to the sender.

ii. There must be a notice in the email that advises the recipient that he or she may reply to the email, via the functioning return email address, to request that future email solicitations or correspondence not be sent to him or her (a functioning “opt-out” notice).

iii. The email must include the Distributor’s physical mailing address.

iv. The email must clearly and conspicuously disclose that the message is an advertisement or solicitation.

v. The use of deceptive subject lines and/or false header information is prohibited.

vi. All opt-out requests, whether received by email or regular mail, must be honored. If a Distributor receives an opt-out request from a recipient of an email, the Distributor must forward the opt-out request to the Company.

Fuel Legacy International may periodically send commercial emails on behalf of Distributors. By entering into the Distributor Agreement, Distributor agrees that the Company may send such emails and that the Distributor’s physical and email addresses will be included in such emails as outlined above. Distributors shall honor opt-out requests generated as a result of such emails sent by the Company.

3.5 - Unsolicited Faxes

Except as provided in this section, Distributors may not use or transmit unsolicited faxes or use an automatic telephone dialing system relative to the operation of their Fuel Legacy International businesses. The term “automatic telephone dialing system” means equipment which has the capacity to: (a) store or produce telephone numbers to be called, using a random or sequential number generator; and (b) to dial such numbers. The terms "unsolicited faxes" and “unsolicited e-mail” mean the transmission via telephone facsimile or electronic mail, respectively, of any material or information advertising or promoting Fuel Legacy International, its products, its compensation plan or any other aspect of the company which is transmitted to any person, except that these terms do not include a fax or e-mail: (a) to any person with that person's prior express invitation or permission; or (b) to any person with whom the Distributor has an established business or personal relationship. The term "established business or personal relationship" means a prior or existing relationship formed by a voluntary two way communication between a Distributor and a person, on the basis of: (a) an inquiry, application, purchase or transaction by the person regarding products offered by such Distributor; or (b) a personal or familial relationship, which relationship has not been previously terminated by either party.

3.6 - Bonus Buying Prohibited

Bonus buying is strictly and absolutely prohibited. “Bonus buying” includes: (a) the enrollment of individuals or entities without the knowledge of and/or execution of an Independent Distributor Application and Agreement by such individuals or entities; (b) the fraudulent enrollment of an individual or entity as a Distributor or Customer; (c) the enrollment or attempted enrollment of non-existent individuals or entities as Distributors or Customers (“phantoms”); (d) Purchasing Fuel Legacy International products or services on behalf of another Distributor or Customer, or under another Distributor’s or Customer’s I.D. number, to qualify for commissions or bonuses; or (e) any other method of directly or indirectly maintaining or increasing a Distributor’s rank, volume, or commission level by purchasing products for which the Distributor does not have a bona fide need for personal use or resale within 30 days from the date of the order.

3.7 - Business Entities

A corporation, partnership (collectively referred to in this section as a “Business Entity”) may apply to be a Fuel Legacy International Distributor by submitting its Certificate of Incorporation, Partnership Agreement or trust documents (these documents are collectively referred to as the “Entity Documents”) to Fuel Legacy International, along with a properly completed Business Entity Registration form. A Fuel Legacy International business may change its status under the same sponsor from an individual to a partnership, corporation or trust, or from one type of entity to another. There is a $25.00 fee for each change requested, which must be included with the written request and the completed Distributor Application and Agreement.

All corporations owning or operating a Fuel Legacy International business must be owned and operated by a sole shareholder or by a husband and wife couple, or if a partnership, by a husband and wife couple only. Business entities that do not meet these criteria are not eligible to become Fuel Legacy International Distributors.

3.8 - Changes to a Fuel Legacy International Business

3.8.1 - General

Each Distributor must immediately notify Fuel Legacy International of all changes to the information contained on his or her Distributor Application and Agreement. Distributors may modify their existing Distributor Agreement (i.e., change Social Security number to Federal I.D. number, or change the form of ownership from an individual proprietorship to a business entity owned by the Distributor) by submitting a written request, a properly executed Distributor Application and Agreement, and appropriate supporting documentation. Fuel Legacy International will only process changes to a Distributor’s business structure once per year.

3.8.2 - Addition of a Spouse as a Co-Applicant

When adding a spouse as a co-applicant (including as a partnership or a business entity) to an existing Fuel Legacy International business, the Company requires a written request as well as a properly completed Distributor Application and Agreement containing the applicant and co-applicant’s Social Security Numbers and signatures. If the original Distributor wants to terminate his or her relationship with the Company, he or she must transfer or assign his or her business in accordance with Section 3.28. If this process is not followed, the business shall be canceled upon the withdrawal of the original Distributor. All bonus and commission checks will be sent to the address of record of the original Distributor. Please note that the modifications permitted within the scope of this paragraph do not include a change of sponsorship. Changes of sponsorship are addressed in Section 3.9 and 3.10, below. There is a $25.00 fee for each change requested, which must be included with the written request and the completed Distributor Application and Agreement. Fuel Legacy International may, at its discretion, require notarized documents before implementing any changes to a Fuel Legacy International business. Please allow thirty (30) days after the receipt of the request by Fuel Legacy International for processing.

3.9 - Change of Sponsor

To protect the integrity of all marketing organizations and safeguard the hard work of all Distributors, Fuel Legacy International strongly discourages changes in sponsorship. Maintaining the integrity of sponsorship is critical for the success of every Distributor and marketing organization. Accordingly, the transfer of a Fuel Legacy International business from one sponsor to another is rarely permitted.

Requests for change of sponsorship must be submitted in writing to the Distributor Services Department, and must include the reason for the transfer. Transfers will only be considered in the following two (2) circumstances:

i. In cases involving fraudulent or unethical sponsoring, a Distributor may request that he or she be transferred to another organization. It is within the Company’s discretion whether the transferring Distributor’s downline will be transferred with him or her. All requests for transfer alleging fraudulent enrollment practices and requests for corresponding downline transfers shall be evaluated on a case by case basis and must be submitted to the company within 60 days from the date of enrollment.

ii. The Distributor seeking to transfer submits a properly completed and fully executed Sponsorship Transfer Form which includes the written approval of his or her immediate five upline Distributors. Photocopied or facsimile signatures are not acceptable. All Distributor signatures must be notarized.

Distributor who requests the transfer must submit a fee of $100.00 for administrative charges and data processing.

In cases wherein the appropriate sponsorship change procedures have not been followed, and a downline organization has been developed in the second business developed by a Distributor, Fuel Legacy International reserves the sole and exclusive right to determine the final disposition of the downline organization. Resolving conflicts over the proper placement of a downline that has developed under an organization that has improperly switched sponsors is often extremely difficult. Therefore, DISTRIBUTORS WAIVE ANY AND ALL CLAIMS AGAINST Fuel Legacy International THAT RELATE TO OR ARISE FROM Fuel Legacy International’s DECISION REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION THAT DEVELOPS BELOW AN ORGANIZATION THAT HAS IMPROPERLY CHANGED LINES OF SPONSORSHIP.

3.10 - Cancellation and Re-application

A Distributor may legitimately change organizations by voluntarily canceling his or her Fuel Legacy International business and remaining inactive (i.e., the Distributor may not directly or indirectly receive any commission from Fuel Legacy International, may make no purchases of Fuel Legacy International products for resale, no sales of Fuel Legacy International products, no sponsoring, no attendance at any Fuel Legacy International functions, participation in any other form of Distributor activity, or operation of any other Fuel Legacy International business) for six (6) full calendar months. Following the six month period of inactivity, the former Distributor may reapply under a new sponsor.

3.11 - Unauthorized Claims and Actions

3.11.1 - Indemnification

A Distributor is fully responsible for all of his or her verbal and written statements made regarding Fuel Legacy International products and the Marketing and Compensation Plan which are not expressly contained in official Fuel Legacy International materials. Distributors agree to indemnify Fuel Legacy International and Fuel Legacy International’s directors, officers, employees, and agents, and hold them harmless from any and all liability including judgments, civil penalties, refunds, attorney fees, court costs, or lost business incurred by Fuel Legacy International as a result of the Distributor’s unauthorized representations or actions. This provision shall survive the termination of the Distributor Agreement.

3.11.2 - Product Claims

No claims regarding Fuel Legacy International’s products or the compensation plan may be made by Distributors other than those set forth in Fuel Legacy International’s official promotional literature (including the Fuel Legacy International website).

3.11.3 - Income Claims

In their enthusiasm to enroll prospective Distributors, some Distributors are occasionally tempted to make income claims or earnings representations to demonstrate the inherent power of network marketing. This is counterproductive because new Distributors may become disappointed very quickly if their results are not as extensive or as rapid as the results others have achieved. At Fuel Legacy International, we firmly believe that the Fuel Legacy International income potential is great enough to be highly attractive, without reporting the earnings of others.

Moreover, the Federal Trade Commission and several states have laws or regulations that regulate or even prohibit certain types of income claims and testimonials made by persons engaged in network marketing. While Distributors may believe it beneficial to provide copies of checks, or to disclose the earnings of themselves or others, such approaches have legal consequences that can negatively impact Fuel Legacy International as well as the Distributor making the claim unless appropriate disclosures required by law are also made contemporaneously with the income claim or earnings representation. Because Fuel Legacy International Distributors do not have the data necessary to comply with the legal requirements for making income claims, a Distributor, when presenting or discussing the Fuel Legacy International opportunity or Marketing and Compensation Plan to a prospective Distributor, may not make income projections, income claims, or disclose his or her Fuel Legacy International income (including the showing of checks, copies of checks, bank statements, or tax records).

3.12 - Commercial Outlets

3.12.1 - Retail Locations

Fuel Legacy International strongly encourages the retailing and selling of products and services through person to person contact. However, Distributors may display or sell Fuel Legacy International products or literature in any retail or service establishment, provided they have full permission from landlord, tenant or owner.

3.12.2 - Online Auctions and Sales Forums

Fuel Legacy International products may not be sold via online sales forums or auction sites including but not limited to eBay. The only online sales facilities that Distributors may use to sell Fuel Legacy International products are official Fuel Legacy International replicated websites.

3.12.3 - Trade Shows, Expositions and Other Sales Forums

Distributors may display and/or sell Fuel Legacy International products at trade shows and professional expositions. Before submitting a deposit to the event promoter, Distributors must contact the Distributor Services department in writing for conditional approval, as Fuel Legacy International’s policy is to authorize only one Fuel Legacy International business per event. Final approval will be granted to the first Distributor who submits an official advertisement of the event, a copy of the contract signed by both the Distributor and the event official, and a receipt indicating that a deposit for the booth has been paid. Approval is given only for the event specified. Any requests to participate in future events must again be submitted to the Compliance Department. Fuel Legacy International further reserves the right to refuse authorization to participate at any function which it does not deem a suitable forum for the promotion of its products, services, or the Fuel Legacy International opportunity.

3.13 - Conflicts of Interest

3.13.1 – Non-solicitation

Fuel Legacy International Distributors are free to participate in other multilevel or network marketing business ventures or marketing opportunities (collectively “network marketing”). However, during the term of this Agreement, with the exception of their personally sponsored Distributors, Distributors may not recruit other Fuel Legacy International Distributors or Customers for any other network marketing business. Following the cancellation of this Agreement, and for a period of one year thereafter, with the exception of his or her personally sponsored downline Distributors, a former Distributor may not recruit any other Fuel Legacy International Distributor or Customer for another network marketing business. Because network marketing is conducted via networks of individuals located throughout the United States and internationally, and these individuals regularly communicate via the internet and telephones, placing a geographic limitation on the scope of this non-solicitation provision would render it wholly ineffective. Therefore, Distributors agree that this non-solicitation provision shall apply to all markets in which Fuel Legacy International conducts business. The term “recruit” means actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way, either directly or through a third party, another Fuel Legacy International Distributor or customer to enroll or participate in another multilevel marketing, network marketing or direct sales opportunity. This conduct constitutes recruiting even if the Distributor’s actions are in response to an inquiry made by another Distributor or Customer.

Distributors must not sell, or attempt to sell, any competing non-Fuel Legacy International products to Fuel Legacy International Customers or Distributors. Any product in the same generic category as Fuel Legacy International products are deemed to be competing, regardless of differences in cost, quality, ingredient content, or method of function.

Distributors may not display Fuel Legacy International promotional material with any other promotional material, products or services in a fashion that might in any way confuse or mislead a prospective customer or Distributor into believing there is a relationship between the Fuel Legacy International and non-Fuel Legacy International products or services. Distributors may not offer the Fuel Legacy International opportunity, products or services to prospective or existing Customers or Distributors in conjunction with any non-Fuel Legacy International program, opportunity, product or service. Distributors may not offer any non-Fuel Legacy International opportunity, products or services at any Fuel Legacy International-related meeting, seminar or convention, or immediately following such event.

3.13.2 - Downline Activity (Genealogy) Reports

Downline Activity Reports are available for Distributor access and viewing at Fuel Legacy International’s official web site. Distributor access to their Downline Activity Reports is password protected. All Downline Activity Reports and the information contained therein are confidential and constitute proprietary information and business trade secrets belonging to Fuel Legacy International. Downline Activity Reports are provided to Distributors in strictest confidence and are made available to Distributors for the sole purpose of assisting Distributors in working with their respective Downline Organizations in the development of their Fuel Legacy International business. Distributors should use their Downline Activity Reports to assist, motivate, and train their downline Distributors. The Distributor and Fuel Legacy International agree that, but for this agreement of confidentiality and nondisclosure, Fuel Legacy International would not provide Downline Activity Reports to the Distributor. A Distributor shall not, on his or her own behalf, or on behalf of any other person, partnership, association, corporation or other entity:

i. Directly or indirectly disclose any information contained in any Downline Activity Report to any third party;

ii. Directly or indirectly disclose the password or other access code to his or her Downline Activity Report;

iii. Use the information to compete with Fuel Legacy International or for any purpose other than promoting his or her Fuel Legacy International business;

iv. Recruit or solicit any Distributor or Customer of Fuel Legacy International listed on any report, or in any manner attempt to influence or induce any Distributor or Preferred Customer of Fuel Legacy International, to alter their business relationship with Fuel Legacy International; or

v. Use or disclose to any person, partnership, association, corporation, or other entity any information contained in any Downline Activity Report.

Upon demand by the Company, any current or former Distributor will return the original and all copies of Downline Activity Reports to the Company.

3.14 - Cross-Sponsoring

Actual or attempted cross sponsoring is strictly prohibited. “Cross sponsoring” is defined as the enrollment of an individual who or entity that already has a current Customer or Distributor Agreement on file with Fuel Legacy International, or who has had such an agreement within the preceding six calendar months, within a different line of sponsorship. The use of a spouse’s or relative’s name, trade names, DBAs, assumed names, corporations, partnerships, trusts, federal ID numbers, or fictitious ID numbers to circumvent this policy is prohibited. Distributors shall not demean, discredit or defame other Fuel Legacy International Distributors in an attempt to entice another Distributor to become part of the first Distributor’s marketing organization.

If Cross Sponsoring is discovered, it must be brought to the Company’s attention immediately. Fuel Legacy International may take disciplinary action against the Distributor that changed organizations and/or those Distributors who encouraged or participated in the Cross Sponsoring. Fuel Legacy International may also move all or part of the offending Distributor’s downline to his or her original downline organization if the Company deems it equitable and feasible to do so. However, Fuel Legacy International is under no obligation to move the Cross Sponsored Distributor’s downline organization, and the ultimate disposition of the organization remains within the sole discretion of Fuel Legacy International. Distributors waive all claims and causes of action against Fuel Legacy International arising from or relating to the disposition of the Cross Sponsored Distributor’s downline organization.

3.15 - Errors or Questions

If a Distributor has questions about or believes any errors have been made regarding commissions, bonuses, Downline Activity Reports, or charges, the Distributor must notify Fuel Legacy International in writing within 60 days of the date of the purported error or incident in question. Fuel Legacy International will not be responsible for any errors, omissions or problems not reported to the Company within 60 days.

3.16 - Governmental Approval or Endorsement

Neither federal or state regulatory agencies nor officials approve or endorse any direct selling or network marketing companies or programs. Therefore, Distributors shall not represent or imply that Fuel Legacy International or its Marketing and Compensation Plan have been "approved," "endorsed" or otherwise sanctioned by any government agency.

3.17 - Identification

All Distributors are required to provide their Social Security Number, or a Federal Employer Identification Number to Fuel Legacy International on the Distributor Application and Agreement. Upon enrollment, the Company will provide a unique Distributor Identification Number to the Distributor by which he or she will be identified. This number will be used to place orders, and track commissions and bonuses.

3.18 - Income Taxes

Each Distributor is responsible for paying all taxes on any income generated as an Independent Distributor. If a Fuel Legacy International business is tax exempt, the Federal tax identification number must be provided to Fuel Legacy International Every year, Fuel Legacy International will provide an IRS Form 1099 MISC (Non-employee Compensation) earnings statement to each U.S. resident who: 1) Had earnings of over $600 in the previous calendar year; or 2) Made purchases during the previous calendar year in excess of $5,000.

3.19 - Independent Contractor Status

Distributors are independent contractors, and are not purchasers of a franchise or a business opportunity. The agreement between Fuel Legacy International and its Distributors does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the Distributor. Distributors shall not be treated as an employee for his or her services or for Federal or State tax purposes. All Distributors are responsible for paying local, state, and federal taxes due from all compensation earned as a Distributor of the Company. The Distributor has no authority (expressed or implied), to bind the Company to any obligation. Each Distributor shall establish his or her own goals, hours, and methods of sale, so long as he or she complies with the terms of the Distributor Agreement, these Policies and Procedures, and applicable laws.

The name of Fuel Legacy International and other names as may be adopted by Fuel Legacy International are proprietary trade names, trademarks and service marks of Fuel Legacy International. As such, these marks are of great value to Fuel Legacy International and are supplied to Distributors for their use only in an expressly authorized manner. Use of Fuel Legacy International name on any item not produced by the Company is prohibited except as follows:

Distributor's Name

Independent Fuel Legacy International Distributor

All Distributors may list themselves as an “Independent Fuel Legacy International Distributor” in the white or yellow pages of the telephone directory under their own name. No Distributor may place telephone directory display ads using Fuel Legacy International's name or logo. Distributors may not answer the telephone by saying “Fuel Legacy International”, “Fuel Legacy International Incorporated”, or in any other manner that would lead the caller to believe that he or she has reached corporate offices of Fuel Legacy International.

3.20 - Insurance

You may wish to arrange insurance coverage for your business. Your homeowner’s insurance policy does not cover business-related injuries, or the theft of or damage to inventory or business equipment. Contact your insurance agent to make certain that your business property is protected. This can often be accomplished with a simple “Business Pursuit” endorsement attached to your present home owner’s policy.

3.21 - International Marketing

Because of critical legal and tax considerations, Fuel Legacy International must limit the resale of Fuel Legacy International products and the presentation of the Fuel Legacy International business to prospective customers and Distributors located within the United States and U.S. Territories, and other markets that the Company has officially announced are open for business. Moreover, allowing a few Distributors to conduct business in markets not yet opened by Fuel Legacy International would violate the concept of affording every Distributor the equal opportunity to expand internationally.

Accordingly, Distributors are authorized to sell Fuel Legacy International products and enroll Customers or Distributors only in the countries in which Fuel Legacy International is authorized to conduct business, as announced in official Company literature. Fuel Legacy International products or sales aids cannot be shipped into or sold in any foreign country. Distributors may sell, give, transfer, or distribute Fuel Legacy International products or sales aids only in their home country. In addition, no Distributor may, in any unauthorized country: (a) conduct sales, enrollment or training meetings; (b) enroll or attempt to enroll potential customers or Distributors; or (c) conduct any other activity for the purpose of selling Fuel Legacy International products, establishing a marketing organization, or promoting the Fuel Legacy International opportunity.

3.22 - Inventory Loading

Distributors must never purchase more products than they can reasonably use or sell to retail customers in a month, and must not influence or attempt to influence any other Distributor to buy more products than they can reasonably use or sell to retail customers in a month.

3.23 - Adherence to Laws and Ordinances

Distributors shall comply with all federal, state, and local laws and regulations in the conduct of their businesses. If a city or county official tells a Distributor that an ordinance applies to him or her, the Distributor shall be polite and cooperative, and immediately send a copy of the ordinance to the Compliance Department of Fuel Legacy International.

3.24 - Minors

A person who is recognized as a minor in his/her state of residence may not be a Fuel Legacy International Distributor. Distributors shall not enroll or recruit minors into the Fuel Legacy International program.

3.25 - RESERVED

3.26 - Actions of Household Members or Affiliated Individuals

If any member of a Distributor’s immediate household engages in any activity which, if performed by the Distributor, would violate any provision of the Agreement, such activity will be deemed a violation by the Distributor and Fuel Legacy International may take disciplinary action pursuant to the Statement of Policies against the Distributor. Similarly, if any individual associated in any way with a corporation, partnership, trust or other entity (collectively “affiliated individual”) violates the Agreement, such action(s) will be deemed a violation by the entity, and Fuel Legacy International may take disciplinary action against the entity.

3.27 - Requests for Records

Any request from a Distributor for copies of invoices, applications, downline activity reports, or other records will require a fee of $1.00 per page per copy. This fee covers the expense of mailing and time required to research files and make copies of the records.

3.28 - Sale, Transfer or Assignment of Fuel Legacy International Business

Although a Fuel Legacy International business is a privately owned, independently operated business, the sale, transfer or assignment of a Fuel Legacy International business is subject to certain limitations. If a Distributor wishes to sell his or her Fuel Legacy International business, the following criteria must be met:

i. Protection of the existing line of sponsorship must always be maintained so that the Fuel Legacy International business continues to be operated in that line of sponsorship.

ii. The buyer or transferee must become a qualified Fuel Legacy International Distributor. Existing Fuel Legacy International Distributors are not eligible to purchase a Fuel Legacy International business. If the prospective buyer is an active Fuel Legacy International Distributor, he or she must first terminate his or her Fuel Legacy International business and remain inactive for six consecutive calendar months before purchasing the Fuel Legacy International business.

iii. Before the sale, transfer or assignment can be finalized and approved by Fuel Legacy International, any debt obligations the selling Distributor has with Fuel Legacy International must be satisfied.

iv. The selling Distributor must be in good standing and not in violation of any of the terms of the Agreement in order to be eligible to sell, transfer or assign a Fuel Legacy International business.

v. A $250.00 transfer fee must be paid to Fuel Legacy International before the transfer will be processed.

Prior to selling a Fuel Legacy International business, the selling Distributor must notify Fuel Legacy International’s Compliance Department of his or her intent to sell the Fuel Legacy International business. No changes in line of sponsorship can result from the sale or transfer of a Fuel Legacy International business. Fuel Legacy International reserves the right to approve or deny any requested sale.

3.29 - Separation of a Fuel Legacy International Business

Fuel Legacy International Distributors sometimes operate their Fuel Legacy International businesses as husband-wife partnerships, regular partnerships, corporations, or trusts. At such time as a marriage may end in divorce or a corporation, partnership or trust (the latter three entities are collectively referred to herein as “entities”) may dissolve, arrangements must be made to assure that any separation or division of the business is accomplished so as not to adversely affect the interests and income of other businesses up or down the line of sponsorship. If the separating parties fail to provide for the best interests of other Distributors and the Company, Fuel Legacy International will involuntarily terminate the Distributor Agreement.

During the pendency of a divorce or entity dissolution, the parties must adopt one of the following methods of operation:

i. One of the parties may, with consent of the other(s), operate the Fuel Legacy International business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners or trustees authorize Fuel Legacy International to deal directly and solely with the other spouse or non-relinquishing shareholder, partner or trustee.

ii. The parties may continue to operate the Fuel Legacy International business jointly on a “business-as-usual” basis, whereupon all compensation paid by Fuel Legacy International will be paid according to the status quo as it existed prior to the divorce filing or dissolution proceedings. This is the default procedure if the parties do not agree on the format set forth above.

Under no circumstances will the Downline Organization of divorcing spouses or dissolving business entities be divided between the spouses. Fuel Legacy International will recognize only one Downline Organization and will issue only one commission check per Fuel Legacy International business per commission cycle. Commissions shall always be issued to the same individual or entity. In the event that parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition of commissions and ownership of the business, the Distributor Agreement shall be involuntarily canceled.

If a former spouse has completely relinquished all rights in their original Fuel Legacy International business, they are thereafter free to enroll under any sponsor of their choosing. In divorce cases, the spouse who does not receive the Fuel Legacy International business need not wait six calendar months before re-enrolling as a Fuel Legacy International Distributor. However, the former spouse shall have no rights to any Distributors in their former organization. He or she must develop the new business in the same manner as would any other new Distributor.

3.30 - Sponsoring

All active Distributors in good standing have the right to sponsor and enroll others into Fuel Legacy International. Each prospective Customer or Distributor has the ultimate right to choose his or her own Sponsor. If two Distributors claim to be the Sponsor of the same new Distributor or Customer, the Company shall regard the first application received by the Company as controlling.

3.31 - Succession

Upon the death or incapacitation of a Distributor, his or her business may be passed to his or her heirs. Appropriate legal documentation must be submitted to the Company to ensure the transfer is proper. Accordingly, a Distributor should consult an attorney to assist him or her in the preparation of a will or other testamentary instrument. Whenever a Fuel Legacy International business is transferred by a will or other testamentary process, the beneficiary acquires the right to collect all bonuses and commissions of the deceased Distributor’s marketing organization provided the following qualifications are met. The successor(s) must:

Execute a Distributor Agreement;
Comply with terms and provisions of the Agreement;
Meet all of the qualifications for the deceased Distributor’s status;
Bonus and commission checks of a Fuel Legacy International business transferred pursuant to this section will be paid in a single check jointly to the devisees. The devisees must provide Fuel Legacy International with an “address of record” to which all bonus and commission checks will be sent;
If the business is bequeathed to joint devisees, they must form a business entity and acquire a federal taxpayer Identification number. Fuel Legacy International will issue all bonus and commission checks and one 1099 to the business entity.

3.31.1 - Transfer Upon Death of a Distributor

To effect a testamentary transfer of a Fuel Legacy International business, the successor must provide the following to Fuel Legacy International: (1) an original death certificate; (2) a notarized copy of the will or other instrument establishing the successor’s right to the Fuel Legacy International business; and (3) a completed and executed Distributor Agreement.

3.31.2 - Transfer Upon Incapacitation of a Distributor

To effectuate a transfer of a Fuel Legacy International business because of incapacity, the successor must provide the following to Fuel Legacy International: (1) a notarized copy of an appointment as trustee; (2) a notarized copy of the trust document or other documentation establishing the trustee’s right to administer the Fuel Legacy International business; and (3) a completed Distributor Agreement executed by the trustee.

3.32 - Telemarketing Techniques

The Federal Trade Commission and the Federal Communications Commission each have laws that restrict telemarketing practices. Both federal agencies (as well as a number of states) have “do not call” regulations as part of their telemarketing laws. Although Fuel Legacy International does not consider Distributors to be “telemarketers” in the traditional sense of the word, these government regulations broadly define the term “telemarketer” and “telemarketing” so that your inadvertent action of calling someone whose telephone number is listed on the federal “do not call” registry could cause you to violate the law. Moreover, these regulations must not be taken lightly, as they carry significant penalties (up to $11,000.00 per violation).

Therefore, Distributors must not engage in telemarketing in the operation of their Fuel Legacy International businesses. The term “telemarketing” means the placing of one or more telephone calls to an individual or entity to induce the purchase of a Fuel Legacy International product or service, or to recruit them for the Fuel Legacy International opportunity. “Cold calls" made to prospective customers or Distributors that promote either Fuel Legacy International’s products or services or the Fuel Legacy International opportunity constitute telemarketing and are prohibited. However, a telephone call(s) placed to a prospective customer or Distributor (a "prospect") is permissible under the following situations:

i. If the Distributor has an established business relationship with the prospect. An “established business relationship” is a relationship between a Distributor and a prospect based on the prospect’s purchase, rental, or lease of goods or services from the Distributor, or a financial transaction between the prospect and the Distributor, within the eighteen (18) months immediately preceding the date of a telephone call to induce the prospect's purchase of a product or service.

ii. The prospect’s personal inquiry or application regarding a product or service offered by the Distributor, within the three (3) months immediately preceding the date of such a call.

iii. If the Distributor receives written and signed permission from the prospect authorizing the Distributor to call. The authorization must specify the telephone number(s) which the Distributor is authorized to call.

iv. You may call family members, personal friends, and acquaintances. An “acquaintance” is someone with whom you have at least a recent first-hand relationship within the preceding three months. Bear in mind, however, that if you make a habit of “card collecting” with everyone you meet and subsequently calling them, the FTC may consider this a form of telemarketing that is not subject to this exemption. Thus, if you engage in calling “acquaintances,” you must make such calls on an occasional basis only and not make this a routine practice.

v. Distributors shall not use automatic telephone dialing systems relative to the operation of their Fuel Legacy International businesses. The term “automatic telephone dialing system” means equipment which has the capacity to: (a) store or produce telephone numbers to be called, using a random or sequential number generator; and (b) to dial such numbers.

SECTION 4 - RESPONSIBILITIES OF DISTRIBUTORS

4.1 - Change of Address or Telephone

To ensure timely delivery of products, support materials, and commission checks, it is critically important that the Fuel Legacy International’s files are current. Street addresses are required for shipping since UPS cannot deliver to a post office box. Distributors planning to move should send their new address and telephone numbers to Fuel Legacy International’s Corporate Offices to the attention of the Distributor Services Department. To guarantee proper delivery, two weeks advance notice must be provided to Fuel Legacy International on all changes.

4.2 - Continuing Development Obligations

4.2.1 - Ongoing Training

Any Distributor who sponsors another Distributor into Fuel Legacy International must perform a bona fide assistance and training function to ensure that his or her downline is properly operating his or her Fuel Legacy International business. Distributors must have ongoing contact and communication with the Distributors in their Downline Organizations. Examples of such contact and communication may include, but are not limited to: newsletters, written correspondence, personal meetings, telephone contact, voice mail, electronic mail, and the accompaniment of downline Distributors to Fuel Legacy International meetings, training sessions, and other functions. Upline Distributors are also responsible to motivate and train new Distributors in Fuel Legacy International product knowledge, effective sales techniques, the Fuel Legacy International Marketing and Compensation Plan, and compliance with Company Policies and Procedures. Communication with and the training of downline distributors must not, however, violate Section 3.2 (regarding the development of distributor-produced sales aids and promotional materials).

Distributors must monitor the Distributors in their Downline organizations to ensure that downline Distributors do not make improper product or business claims, or engage in any illegal or inappropriate conduct. Upon request, every Distributor should be able to provide documented evidence to Fuel Legacy International of his or her ongoing fulfillment of the responsibilities of a Sponsor.

4.2.2 - Increased Training Responsibilities

As Distributors progress through the various levels of leadership, they will become more experienced in sales techniques, product knowledge, and understanding of the Fuel Legacy International program. They will be called upon to share this knowledge with lesser experienced Distributors within their organization.

4.2.3 - Ongoing Sales Responsibilities

Regardless of their level of achievement, Distributors have an ongoing obligation to continue to personally promote sales through the generation of new customers and through servicing their existing customers.

4.3 – Non-disparagement

Fuel Legacy International wants to provide its independent Distributors with the best products, compensation plan, and service in the industry. Accordingly, we value your constructive criticisms and comments. All such comments should be submitted in writing to the Communications Department. Remember, to best serve you, we must hear from you! While Fuel Legacy International welcomes constructive input, negative comments and remarks made in the field by Distributors about the Company, its products, or compensation plan serve no purpose other than to sour the enthusiasm of other Fuel Legacy International Distributors. For this reason, and to set the proper example for their downline, Distributors must not disparage, demean, or make negative remarks about Fuel Legacy International, other Fuel Legacy International Distributors, Fuel Legacy International’s products, the Marketing and Compensation plan, or Fuel Legacy International’s directors, officers, or employees.

4.4 - Providing Documentation to Applicants

Distributors must provide the most current version of the Policies and Procedures and the Compensation Plan to individuals whom they are sponsoring to become Distributors before the applicant signs a Distributor Agreement. Additional copies of Policies and Procedures can be downloaded from Fuel Legacy International’s website.

4.5 - Reporting Policy Violations

Distributors observing a Policy violation by another Distributor should submit a written report of the violation directly to the attention of the Fuel Legacy International Compliance Department. Details of the incidents such as dates, number of occurrences, persons involved, and any supporting documentation should be included in the report.

SECTION 5 - SALES REQUIREMENTS

5.1 - Product Sales

The Fuel Legacy International Marketing and Compensation Plan is based upon the sale of Fuel Legacy International products and services to end consumers. Distributors must fulfill personal and Downline Organization retail sales requirements (as well as meet other responsibilities set forth in the Agreement) to be eligible for bonuses, commissions and advancement to higher levels of achievement. The following sales requirements must be satisfied for Distributors to be eligible for commissions:

· Distributors must satisfy the Personal Sales Volume requirements to fulfill the requirements as specified in the Fuel Legacy International Marketing and Compensation Plan. “Personal Sales Volume” includes purchases made by the Distributor and purchases made by the Distributor’s personal customers who place orders from the Distributor’s replicated website or who the Distributor personally signs up as auto-ship customers. Personal Sales Volume does not include volume of your personally sponsored downline Distributors.

· At least 50% of a Distributor’s total monthly personal sales volume must be sold to retail customers, or a Distributor must generate at least three retail customer sales each month.

5.2 - No Territory Restrictions

There are no exclusive territories granted to anyone. No franchise fees are required.

5.3 - Sales Receipts

All Distributors must provide their retail customers with two copies of an official Fuel Legacy International sales receipt at the time of the sale. These receipts set forth the Customer Satisfaction Guarantee as well as any consumer protection rights afforded by federal or state law. Distributors must maintain all retail sales receipts for a period of two years and furnish them to Fuel Legacy International at the Company’s request. Records documenting the purchases of Distributors’ autoship customers and those customers who purchase from a Distributor’s Fuel Legacy International replicated website will be maintained by Fuel Legacy International.

Remember that customers must receive two copies of the sales receipt. In addition, Distributors must orally inform the buyer of his or her cancellation rights.

SECTION 6 - BONUSES AND COMMISSIONS

6.1 - Bonus and Commission Qualifications

A Distributor must be active and in compliance with the Agreement to qualify for bonuses and commissions. So long as a Distributor complies with the terms of the Agreement, Fuel Legacy International shall pay commissions to such Distributor in accordance with the Marketing and Compensation plan. The minimum amount for which Fuel Legacy International will issue a check is $25.00. If a Distributor’s bonuses and commissions do not equal or exceed $25.00 the Company will accrue the commissions and bonuses until they total $25.00. A check will be issued once $25.00 has been accrued. Notwithstanding the foregoing, all accrued bonuses and commissions will be paid in December of each year regardless of the amount accrued.

6.2 - Adjustments to Bonuses and Commissions

6.2.1 - Returns and Refunds

Distributors receive bonuses and commissions based on the actual sales of products to end consumers. When a product is returned to Fuel Legacy International for a refund or is repurchased by the Company, the bonuses and commissions attributable to the returned or repurchased product(s) will be deducted, in the month in which the refund is given, and continuing every pay period thereafter until the commission is recovered, from the Distributors who received bonuses and commissions on the sales of the refunded products.

6.2.2 - Commission Check Fee

A $3.00 processing fee will be deducted from each commission check issued to Distributors.

6.3 - Reports

All information provided by Fuel Legacy International in online or telephonic downline activity reports, including but not limited to personal and group sales volume (or any part thereof), and downline sponsoring activity is believed to be accurate and reliable. Nevertheless, due to various factors including the inherent possibility of human and mechanical error, the accuracy, completeness, and timeliness of orders; denial of credit card and electronic check payments, returned products, credit card and electronic check charge-backs, the information is not guaranteed by Fuel Legacy International or any persons creating or transmitting the information.

ALL SALES VOLUME INFORMATION IS PROVIDED "AS IS" WITHOUT WARRANTIES, EXPRESS OR IMPLIED, OR REPRESENTATIONS OF ANY KIND WHATSOEVER. IN PARTICULAR BUT WITHOUT LIMITATION THERE SHALL BE NO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, OR NON‑INFRINGEMENT.

TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, Fuel Legacy International AND/OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION WILL IN NO EVENT BE LIABLE TO ANY DISTRIBUTOR OR ANYONE ELSE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT ARISE OUT OF THE USE OF OR ACCESS TO SALES VOLUME INFORMATION (INCLUDING BUT NOT LIMITED TO LOST PROFITS, BONUSES, OR COMMISSIONS, LOSS OF OPPORTUNITY, AND DAMAGES THAT MAY RESULT FROM INACCURACY, INCOMPLETENESS, INCONVENIENCE, DELAY, OR LOSS OF THE USE OF THE INFORMATION), EVEN IF Fuel Legacy International OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. TO THE FULLEST EXTENT PERMITTED BY LAW, Fuel Legacy International OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE NO RESPONSIBILITY OR LIABILITY TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY OR OTHER THEORY WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO.

Access to and use of Fuel Legacy International’s online and telephone reporting services and your reliance upon such information is at your own risk. If you are dissatisfied with the accuracy or quality of the information, your sole and exclusive remedy is to discontinue use of and access to Fuel Legacy International’s online and telephone reporting services and your reliance upon the information.

SECTION 7 - PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASE

7.1 - Product Guarantee

Fuel Legacy International offers a 30 day money-back satisfaction guarantee on unopened products that are returned to the company within 30 days from the date of receipt. DO NOT RETURN OPENED BOTTLES AS THEY MAY LEAK IN TRANSIT AND ARE NOT REFUNDABLE. Since Fuel Legacy International products are sold in multi-packs, refunds are prorated based on unopened returned bottles. If a Distributor returns more than $400.00 in merchandise to Fuel Legacy International for a refund in any 12 month period pursuant to this product guarantee, it shall constitute the Distributor’s request to voluntarily cancel his or her business and the return shall be treated as an inventory return subject to Section 7.3. Shipping and handling and return shipping and handling charges are not subject to this refund policy.

7.2 - Three Day Right to Cancel

A retail customer who makes a purchase of $25.00 or more has three business days (Saturday is included as a business day) after the sale or execution of a contract to cancel the order and receive a full refund consistent with the cancellation notice on the order form (Alaska residents have five business days). When a Distributor makes a sale or takes an order from a retail customer who cancels or requests a refund within the three business day period, the Distributor must promptly refund the customer's money as long as the products are returned to the distributor in substantially as good condition as when received. Additionally, Distributors must verbally inform customers of their right to rescind a purchase or an order within three business days, and ensure that the date of the order or purchase is entered on the order form. All retail customers must be provided with two copies of an official Fuel Legacy International sales receipt at the time of the sale. The back of the receipt provides the customer with written notice of his or her rights to cancel the sales agreement.

7.3 - Return of Product Inventory and Sales Aids by Distributors

Within 30 days of placing an initial order to become a Fuel Legacy International Distributor and upon cancellation of a Distributor’s Agreement, the Distributor may return products and sales aids held in his or her inventory for a refund. A Distributor may only return products and sales aids that he or she personally purchased and which are in resalable condition. Upon receipt of the products and sales aids, the Distributor will be reimbursed 80% of the net cost of the original purchase price(s), less shipping charges. Since Fuel Legacy International products are sold in multi-packs, refunds are prorated based on unopened returned bottles. All refunds will be paid via company check and processed within 14 days of receipt of product delivery to Fuel Legacy International. If a Distributor was paid a commission based on a product(s) purchase, and such product(s) is subsequently returned for a refund, the commission that was paid to the Distributor will be deducted from the amount of the refund. Distributors are responsible for return shipping charges.

7.3.1 - Montana Residents

A Montana resident may cancel his or her Distributor Agreement within 15 days from the date of enrollment, and may return his or her starter kit for a full refund within such time period.

7.4 - Procedures for All Returns

The following procedures apply to all returns for refund, repurchase, or exchange:

i. All merchandise must be returned by the Distributor or customer who purchased it directly from Fuel Legacy International.

ii. All products to be returned must have the Order Number appearing on the packing slip written on each carton returned.

iii. The return is accompanied by:

o the Fuel Legacy International Return Form that is located on Fuel Legacy International’s corporate website:

Download Product Return Form

o the unopened portion of the product in its original container.

iv. Proper shipping carton(s) and packing materials are to be used in packaging the product(s) being returned for replacement, and the best and most economical means of shipping is suggested. All returns must be shipped to Fuel Legacy International shipping pre-paid. Fuel Legacy International does not accept shipping-collect packages. The risk of loss in shipping for returned product shall be on the Distributor. If returned product is not received by the Company’s Distribution Center, it is the responsibility of the Distributor to trace the shipment.

v. If a Distributor is returning merchandise to Fuel Legacy International that was returned to him or her by a personal retail customer, the product must be received by Fuel Legacy International within ten (10) days from the date on which the retail customer returned the merchandise to the Distributor, and must be accompanied by the sales receipt the Distributor gave to the customer at the time of the sale.

No refund or replacement of product will be made if the conditions of these rules are not met.

SECTION 8 - DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS

8.1 - Disciplinary Sanctions

A Distributor’s violation of the Agreement, these Policies and Procedures, violation of any common law duty, including but not limited to any applicable duty of loyalty, any illegal, fraudulent, deceptive or unethical business conduct, or any act or omission by a Distributor that, in the sole discretion of the Company may damage it’s reputation or goodwill, may result, at Fuel Legacy International's discretion, in one or more of the following measures being imposed on the Distributor:

i. Issuance of a written warning or admonition;

ii. Requiring the Distributor to take immediate corrective measures;

iii. Imposition of a fine, which may be withheld from bonus and commission checks;

iv. Loss of rights to one or more bonus and commission checks;

v. Fuel Legacy International may withhold from a Distributor all or part of the Distributor’s bonuses and commissions during the period that Fuel Legacy International is investigating any conduct allegedly violative of the Agreement. If a Distributor’s business is canceled for disciplinary reasons, the Distributor will not be entitled to recover any commissions withheld during the investigation period;

vi. Suspension of the individual’s Distributor Agreement for one or more pay periods;

vii. Involuntary termination of the offender’s Distributor Agreement;

viii. Any other measure expressly allowed within any provision of the Agreement or which Fuel Legacy International deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the Distributor’s policy violation or contractual breach;

ix. In situations deemed appropriate by Fuel Legacy International, the Company may institute legal proceedings for monetary and/or equitable relief.

8.2 - Grievances and Complaints<