Consultant Guidebook Canada

t n a t l u s n o CGUIDEBOOK celebrate | encourage | reward

CONSULTANT GUIDEBOOK

Thirty-‐One Gifts Canada Inc. (“Thirty-‐One” or “Thirty-‐One Gifts”) is a different way to live your life. With the opportunity to work from home and be a business owner, you can chart your own unique course. A Thirty-‐One business is yours to dream, build and develop! We have created this Consultant Guidebook to help you understand how to establish and run a Thirty-‐ One business. It will guide you through how to work with us, customers and other Thirty-‐One Consultants. This Consultant Guidebook provides the foundation that shapes the success of our hard-‐ working, courageous and always fun-‐loving Consultants. As you read through this Consultant Guidebook, you’ll see that it covers the policies, procedures and administrative aspects involved in running a successful Thirty-‐One business. Your Independent Sales Consultant Application and Agreement (which we refer to as your “Consultant Agreement”) with us includes all of the policies and procedures contained in this Consultant Guidebook and they are an essential part of your legal agreement with us. When we say “we,” “us” and “our,” or “Thirty-‐One”, we are referring exclusively to Thirty-‐One Gifts Canada Inc., and when we say “you” and “yours,” we are referring to our Consultants. We’ve tried to keep the Consultant Guidebook as brief and simple as possible, but sometimes we need to use technical or legal language. We have included a Glossary at the end of the Consultant Guidebook to define some of the business terms. Please read this Consultant Guidebook carefully and refer back to it when you have questions. You are responsible for reading, understanding and following your Consultant Agreement, which includes all of the policies, procedures and other information in this Consultant Guidebook. If there is something you don’t understand, please ask your Sponsor or contact our Career and Guideline Support (“CAGS”) Department at CAGScanada@thirtyonegifts.ca or 855-‐Gifts31 (855-‐443-‐ 8731). Congratulations on joining the Thirty-‐One Gifts Family!

TABLE OF CONTENTS

What is Thirty-‐One? ......................................................................................................................................................... 1 What does it mean to be a Thirty-‐One Consultant? ....................................................................................................... 1 Independent Contractor Status ................................................................................................................................. 1 Living Thirty-‐One’s Values .......................................................................................................................................... 2 DSA Code of Ethics ..................................................................................................................................................... 3 Criticism and Professionalism .................................................................................................................................... 3 Are there any requirements to be a Thirty-‐One Consultant? ......................................................................................... 3 Eligibility ..................................................................................................................................................................... 3 Identification Numbers .............................................................................................................................................. 3 Doing Business in Other Countries ............................................................................................................................ 4 Changing Your Address, Telephone Number or Email Address ................................................................................. 4 One Consultant Per Household; Businesses as Consultants ...................................................................................... 4 How do I become a Thirty-‐One Consultant? ................................................................................................................... 4 Are there different status levels for Consultants? .......................................................................................................... 5 Consultant Status Levels ............................................................................................................................................ 5 What happens if I become Inactive? ............................................................................................................................... 6 Inactive for 0-‐6 Months ............................................................................................................................................. 6 Inactive for 6-‐12 Months ........................................................................................................................................... 6 Inactive for 12+ Months ............................................................................................................................................. 6 How can I stop being a Thirty-‐One Consultant? ............................................................................................................. 7 Resignation ................................................................................................................................................................ 7 Termination by Thirty-‐One ........................................................................................................................................ 7 Effect of Resignation or Termination ......................................................................................................................... 8 Returning Your Enrollment Kit and Business Supplies ............................................................................................... 8 Account Suspension ................................................................................................................................................... 9 Death ......................................................................................................................................................................... 9 If my Consultant Agreement is terminated, may I rejoin Thirty-‐One? ........................................................................... 9 How to Rejoin .......................................................................................................................................................... 10 Incentives and Rewards ........................................................................................................................................... 10 Your Downline ......................................................................................................................................................... 10

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May I take a leave of absence from my Thirty-‐One business? ..................................................................................... 10 Personal Leave ......................................................................................................................................................... 10 Military Leave .......................................................................................................................................................... 11 What is the 2016 Career Path? ...................................................................................................................................... 11 Promoting to Director .............................................................................................................................................. 15 Development Obligations ........................................................................................................................................ 15 Permanent Roll-‐Ups ................................................................................................................................................. 16 Pass-‐By ..................................................................................................................................................................... 16 How does sponsoring new Consultants work? ............................................................................................................. 17 Income Claims .......................................................................................................................................................... 17 New Recruit Applications ......................................................................................................................................... 18 Recruiting From Other Direct Selling Companies .................................................................................................... 18 Soliciting Thirty-‐One Customers and Consultants ................................................................................................... 19 Changing Sponsors ................................................................................................................................................... 19 How will I receive payments from Thirty-‐One? ............................................................................................................. 19 General .................................................................................................................................................................... 19 Payment Schedule ................................................................................................................................................... 19 Form of Payment ..................................................................................................................................................... 20

Bank Fees ................................................................................................................................................................. 20 Errors or Questions .................................................................................................................................................. 20 Offsets ...................................................................................................................................................................... 20 Do I have to pay taxes on the income I receive from Thirty-‐One? ............................................................................... 20 What are the policies for offering Thirty-‐One products for sale? ................................................................................. 22 Truthfulness and Integrity ....................................................................................................................................... 22 Consultant Support .................................................................................................................................................. 22 Legal Compliance ..................................................................................................................................................... 22 Sales Receipts and Customer Cancellation Rights ................................................................................................... 23 Licenses .................................................................................................................................................................... 23 No Exclusive Territory .............................................................................................................................................. 24 Personalized Products ............................................................................................................................................. 24 Product Availability .................................................................................................................................................. 24 Selling for Other Direct Selling Companies (Senior Executive Director and Above) ................................................ 25

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Selling Other Brands or Products ............................................................................................................................. 25 Discounting Thirty-‐One Products ............................................................................................................................. 25 Buying Extra Products and Improper Enrollment of Consultants ............................................................................ 26 Recruitment Fees Prohibitied .................................................................................................................................. 27 Ordering ................................................................................................................................................................... 27 Order Deadlines and Site Downtime ....................................................................................................................... 28 Customer Payments and Protecting Customer Information ................................................................................... 28 Shipping and Handling ............................................................................................................................................. 29 Address Changes for Orders .................................................................................................................................... 30 Return Policy ............................................................................................................................................................ 30 Governmental Approval or Endorsement ................................................................................................................ 30 Where can I sell products and recruit new Consultants? .............................................................................................. 30 Retail Locations ........................................................................................................................................................ 31 Mail Order Houses and Distribution Centers ........................................................................................................... 31 Trade Shows and Expositions .................................................................................................................................. 31 Insurance ................................................................................................................................................................. 32 Telemarketing .......................................................................................................................................................... 32 Clearance and Outlet Sales ...................................................................................................................................... 32

How does Thirty-‐One support charities and fundraisers? ................................................................................... 32 Thirty-‐One Gives ....................................................................................................................................................... 33 Thirty-‐One Gives – Corporate Logo .......................................................................................................................... 33 Thirty-‐One Gives – Independent Consultant Logo ................................................................................................... 33 Fundraisers ............................................................................................................................................................... 34 Sales Tax to Exempt Organizations ................................................................................................................ 34

What are the high level guidelines for marketing? ............................................................................................... 34 Identify Yourself as an Independent Thirty-‐One Consultant ................................................................................... 34 Protecting the Thirty-‐One Name, Logo, Trademark, Designs, Images & Symbols ................................................... 35 Marketing Materials ................................................................................................................................................ 35 Talking to the Media ................................................................................................................................................ 36 Home Office Leads ................................................................................................................................................... 36

How can I market and support my Thirty-‐One business? .................................................................................... 37 Domain Names, Email Addresses and Online Aliases/User Names ......................................................................... 37 Advertisements/Paid Media .................................................................................................................................... 37 Print Advertising…………………………………………………………………………………………………………………………………………………38 © February 2016 Thirty-‐One Gifts Canada Inc.

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Sponsored Links/Pay-‐Per-‐Click Ads .......................................................................................................................... 38 Search Engines/Metatags/Keywords ....................................................................................................................... 38 Banner Advertising .................................................................................................................................................. 39 Replicated Websites ................................................................................................................................................ 39 External Websites .................................................................................................................................................... 40 Online Sales ............................................................................................................................................................. 40 Unsolicited Email Spamming / Mass Emailing ......................................................................................................... 41 Unsolicited Faxes ..................................................................................................................................................... 42 Spam Linking ............................................................................................................................................................ 42 Links ......................................................................................................................................................................... 42

What is social media? ................................................................................................................................................. 42 Our Goal for Social Media ........................................................................................................................................ 43

Facebook ................................................................................................................................................................ 44 Additional Facebook Guidelines .............................................................................................................................. 44 Thirty-‐One’s Public Facebook Page .......................................................................................................................... 45 Thirty-‐One’s Public Conference Facebook Page ...................................................................................................... 46 Your Personal Facebook Profile ............................................................................................................................... 46 Public Figure Page/Business Person .... ................................................................................................................... 47 Facebook Groups ..................................................................................................................................................... 48 Closed Groups .......................................................................................................................................................... 48 Thirty-‐One’s Home Office Groups ............................................................................................................................ 48 Confidentiality Reminder for Social Media! ............................................................................................................. 49 Creating and Posting Events on Facebook ............................................................................................................... 49 Facebook Advertising ............................................................................................................................................... 49 Twitter ..................................................................................................................................................................... 51 Twitter Advertising .................................................................................................................................................. 51 Pinterest .................................................................................................................................................................. 52 Thirty-‐One’s Public Pinterest Account (www.pinterest.com/thirtyonegifts) ........................................................... 52 Personal Pinterest Account ...................................................................................................................................... 52 Thirty-‐One’s Public Instagram Account ................................................................................................................... 53 Your Personal Instagram Accounts .......................................................................................................................... 53 Thirty-‐One’s Public Google+ Page……………………………………………………………………………………………………………………….53 Your Personal Google+ Page .................................................................................................................................... 54 Thirty-‐One’s YouTube Channel ................................................................................................................................ 54 © February 2016 Thirty-‐One Gifts Canada Inc.

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Your Personal Video Accounts (YouTube, Vimeo, etc.) ........................................................................................... 55 Cindy’s Public Periscope Account ............................................................................................................................ 55 Your Personal Periscope Account ............................................................................................................................ 55 Blogs ........................................................................................................................................................................ 56 Is there anything else I should know about being a Consultant? ................................................................................. 56 Celebrate, Encourage and Reward .......................................................................................................................... 56 Consultant Product Ideas, Marketing Materials and Training Tools ........................................................................ 56 Amendments ........................................................................................................................................................... 57 Contractual Remedies Available to Thirty-‐One ........................................................................................................ 57 Concerns and Complaints ........................................................................................................................................ 58 Reporting Policy Violations ...................................................................................................................................... 58 Acts by Members of Your Household or Business Entity ......................................................................................... 58 Transferring Your Thirty-‐One Business .................................................................................................................... 58

Consultant Release ................................................................................................................................................... 58 Confidential Information ......................................................................................................................................... 59 Reports .................................................................................................................................................................... 59 Indemnification ........................................................................................................................................................ 60 Class Action Waiver ................................................................................................................................................. 60

Mediation, Arbitration and Legal Proceedings ........................................................................................................ 61 Mediation ................................................................................................................................................................ 61 Arbitration ............................................................................................................................................................... 62 Legal Proceedings .................................................................................................................................................... 63

Governing Law, Jurisdiction and Venue ................................................................................................................... 63 Severability .............................................................................................................................................................. 63 Waiver ...................................................................................................................................................................... 63 Limitation of Damages ............................................................................................................................................. 64 Thank You ................................................................................................................................................................ 64 GLOSSARY ....................................................................................................................................................................... 65

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What is Thirty-‐One? We are a party plan direct selling company offering a business opportunity. Through our independent sales representatives (which we call “Consultants”), we offer a wide variety of “giftable” products, including signature purses, jewelry, totes, and other storage solutions that help organize your life. Each season, we develop new products built on the idea that our products must be functional, fashionable and, of course, make great gifts! We also offer customers the unique opportunity to “personalize” many of our products by adding icons, words, initials and phrases through embroidery, printing and laser etching. The name Thirty-‐One comes from the verses of Proverbs 31. The Proverbs 31 woman is dearly loved and respected by her family, yet she is an individual in her own right. She manages her home and property with kindness and integrity. Her savvy business skills are partly brought about by her desire to serve others, to do good deeds, and to prosper. So, what is Thirty-‐One? Thirty-‐One is more than just a company. We are people who believe in celebrating, encouraging and rewarding others for who they are. Through God’s strength we’ve built a family of individuals who feel women deserve to treat themselves and those around them to something special. Our commitment is to provide women with a fulfilling, enjoyable and rewarding experience one person at a time.

What does it mean to be a Thirty-‐One Consultant?

Independent Contractor Status As a Thirty-‐One Consultant you are in business for yourself, but not by yourself. Your status is that of an “independent contractor.” The Independent Sales Consultant Application and Agreement, together with this Guidebook, and the Thirty-‐One Gifts Canada Career Path, constitute the Agreement between you and Thirty-‐One. This Agreement is a contract by which you agree to offer our products for sale to others, and get paid a commission for your sales efforts when those products are sold. You establish your own goals, hours and methods of sale, as long as you comply with our policies and procedures and any applicable laws. As an independent contractor, you’re not (and may not represent yourself as) an employee, agent, partner, legal representative or franchisee of Thirty-‐One. This means that you’re not entitled to receive a salary or any benefits we offer to our employees. It also means that you don’t have the power or authority to enter into contracts or to incur any debt, obligation or liability on our behalf. You are responsible for your own business decisions and expenses, including the payment of any self-‐ employment, Workers’ Compensation, employment insurance and other fees required by federal, provincial or municipal laws. For further certainty, the specifics of your legal relationship with Thirty-‐One are as follows: • Control -‐ Subject to the terms of the Consultant Agreement and other applicable laws, you will have complete control and discretion over the operation of your independent business, including how much or how little time you devote to your business, and you are entitled to © January 2016 Thirty-‐One Gifts Canada Inc.

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establish your own business goals, business hours, and business methods, policies and procedures. •

Ownership of Tools – You’re responsible for the ownership and acquisition of any business tools, equipment, assets, and expenses, and all business goods, services and intangibles that you, in your discretion, believe are necessary for the operation of your independent business, including the location and appointment of your business office, business cards, letterhead, computer equipment, motor vehicle(s), and other tools and equipment (e.g., phone, office supplies etc.) which you alone deem necessary for operation of your business, all of which you will establish and/or acquire at your own expense. You will also maintain insurance, such as liability, fire and theft insurance, during the term of this Consultant Agreement for the benefit of your business, in amounts you deem appropriate, and at your own expense.

•

Chance of Profit/Risk of Loss – You agree with us that all expenses you incur in the operation of your business will be incurred on your own account, and be your responsibility. You also agree with us that the terms of your compensation is entirely set out in the Thirty-‐One Career Path, and accordingly, the chance of profit and the risk of loss inherent in the Career Path, and inherent in the operation of your independent business, rests entirely with you, with no “expense reimbursement” or “minimum compensation” being offered or guaranteed by Thirty-‐ One whatsoever.

•

No Power to Bind -‐ While you are entitled to inform others that you are a Consultant engaged by Thirty-‐One in an independent status, you may not represent yourself to be an employee of Thirty-‐One, and you will clarify with others, where necessary, your status as an independent contractor of Thirty-‐One. You don’t have authority (expressed or implied), to bind Thirty-‐One to any obligation, and you will not be construed as purchasers of a franchise or a business opportunity.

•

No Creation of Employment, Agency, Partnership, Franchise or Joint Venture Relationship -‐ The legal relationship between you and Thirty-‐One is not intended to create, and does not create, an employer/employee relationship, agency, partnership, franchise or joint venture relationship between you and Thirty-‐One.

•

Treatment as Independent Contractor for Tax and Other Purposes – You will not be treated as an employee of Thirty-‐One for Canadian provincial or federal tax purposes (including, but not limited to: federal income tax withholding or reporting requirements, federal unemployment insurance and CPP deductions, the GST/HST, and other like taxes, and provincial employment standards rules and workers’ compensation legislation purposes).

Living Thirty-‐One’s Values Our values are to be Purposeful, Thankful, Respectful, Accountable, Curious, Courageous, Gracious, Authentic, Trustworthy, Hardworking, Fun-‐Loving and Flexible as required to do the right thing, to give back, and to put other people first. We believe in being engaged with integrity in our work, in our communities, in our families, and in our mission. Success depends on the integrity of the Consultants who market our products. We expect our Consultants to practice our values by: •

Following the highest standards of ethics, honesty, integrity and professionalism when dealing with customers, hostesses, fellow Consultants and Thirty-‐One employees.

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•

Supporting individuals by not gossiping or making disparaging comments about others.

•

Never discriminating against anyone because of age, race, creed or other legally protected status.

•

Following all of our policies and procedures and acting in good faith.

DSA Code of Ethics As a proud member of the Direct Sellers Association of Canada (“DSA”), we support the DSA’s “Code of Ethics.” You can view the DSA Code of Ethics at http://dsa.ca/consumer-‐protection/code-‐of-‐ethics/. It’s important to us that you conduct your Thirty-‐One business in accordance with the DSA Code of Ethics.

Criticism and Professionalism We strive to provide our Consultants with a simple, effective and fun path to success. We need to know how you think we’re doing. We always value your feedback and ask that your criticism always be constructive and professional. You agree to conduct your Thirty-‐One business with integrity and to refrain from making negative, disparaging, false or misleading comments about Thirty-‐One (including the Career Path and our owners, employees, products and vendors), other Consultants, or any other direct selling company (including that company’s consultants, compensation and products). You also agree not to do anything that is likely to harm us (including our reputation and goodwill) or any other Consultant.

Are there any requirements to be a Thirty-‐One Consultant?

Eligibility To be a Thirty-‐One Consultant, you have to: •

Be of the age of majority in the province in which you reside

•

Be resident in Canada for Canadian Income Tax Purposes

•

Possess a valid Social Insurance Number

•

Be sponsored by a current Consultant

• Maintain your own personal email account Our employees are not eligible to be Consultants.

Identification Numbers

To be a Consultant, you must give us a valid personal taxpayer identification number (i.e., your Canadian Social Insurance Number) for tax reporting purposes. When we accept your Consultant Agreement, we will assign you a Consultant ID. The taxpayer identification number you provide must belong to you. If you give us a fake number or a number that belongs to someone else (including your personal business or spouse), we may terminate your Consultant Agreement and you risk losing your Thirty-‐One business. © January 2016 Thirty-‐One Gifts Canada Inc.

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Doing Business in Other Countries Thirty-‐One Gifts Canada currently operates in Canada. To maintain your status as a Canadian Consultant, you have to remain a permanent resident in Canada. This means that you’ll become Inactive if you relocate outside Canada. Different laws and rules apply outside Canada, so your Consultant Agreement doesn’t transfer to other countries. This means that we can’t allow you to sponsor or sell our products to citizens of other countries, including the United States.

Changing Your Address, Telephone Number or Email Address It’s very important that we have your current address, telephone number and email address so we can send you product orders, support materials, and communications on time to the right place. You can update your profile quickly and easily through your Virtual Office. If you move, please give us at least two weeks’ advance notice to ensure proper delivery of your orders.

One Consultant Per Household; Businesses as Consultants

We only recognize one Consultant name for each Consultant Agreement. You may use a support person to help you with the administrative tasks of running your Thirty-‐One business. However, the person who has regular contact with customers must be the person who has signed the Consultant Agreement. Your support person can’t attend company functions in your place or in the capacity of a Consultant. We only allow guests to attend certain company-‐sponsored meetings and we may have requirements for guests, like pre-‐registration, payment of an attendance fee, etc. Currently, only individuals can sign-‐up to be Consultants and we won’t accept Consultant Agreements from corporations, partnerships, limited liability companies or other business entities. To maintain the integrity of our Career Path, a Consultant can only operate, have an ownership interest in, and receive income from, one Thirty-‐One business. Also, we only allow one individual per household to be a Consultant. A “household” includes spouses and dependent children living at or doing business at the same address. A Consultant and members of her household can only have (or have an interest in) one Thirty-‐One business.

How do I become a Thirty-‐One Consultant? You can apply to become a Consultant by signing and submitting a Thirty-‐One Consultant Agreement and purchasing an Enrollment Kit. Submitting your Consultant Agreement is simple, just: •

Submit it online through your Sponsor’s website (which will include electronic acceptance of the Consultant Agreement, the Consultant Guidebook and our Career Path)

•

Mail it to us at Thirty-‐One Gifts Canada Inc. c/o Thirty-‐One Gifts LLC 3425 Morse Crossing Columbus, Ohio 43219 Attn: CAGS

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• •

Fax it to us c/o Thirty-‐One Gifts LLC at (614) 337-‐1459 Depending on which province you live in, you may need to obtain an identification card from Thirty-‐One Gifts or you may need to get a license from the province before you can start selling as a Consultant. For more information regarding obtaining an identification card or a license from the province, visit ThirtyOneToday.ca (Access Resources > Policies and Forms > Alberta ID Card) (Access Resources > Policies and Forms > Canadian Province Licenses).

As soon as our Home Office approves your signed Consultant Agreement, we will mail your Enrollment Kit and you’ll be ready to start your Thirty-‐One business!

Are there different status levels for Consultants? Yes, we have different status levels of Consultants. Your status level depends on your sales activity, which we call your “Personal Volume.” Generally, “Personal Volume” means the dollar value of the products that you are involved in selling to retail customers, less sales taxes, shipping & handling charges, and returned orders. It’s important to understand that you don’t receive commissions on discounted purchases (e.g., Hostess Credit, Hostess half-‐price items, Hostess Exclusive items, add-‐on kits, and business supplies), sales tax and shipping & handling fees, and these amounts don’t count toward your Personal Volume totals. As you move through our Career Path, you can also achieve different ranks, which we call “Paid At Titles.” Your Paid At Title depends on your Personal Volume and the sales volume of the Consultants in your Downline. Please read “What is the Career Path?” for more information.

Consultant Status Levels ∗

Our status levels are: Status

Description

Active

A Consultant who submits at least $200 in Personal Volume during each rolling three-‐month period (based on the current month and the prior two months). All Consultants are considered to be Active during the first four months following enrollment.

Qualified

A Consultant who has submitted at least $1,000 in Personal Volume.

Inactive

A Consultant who doesn’t submit at least $200 in Personal Volume during each rolling three-‐month period (based on the current month and the prior two months).

Resigned

A Consultant who resigns and terminates her Consultant Agreement. (Will show inactive in the Virtual Office.)

∗

Please see Statement of Typical Participant Earnings on the last page of this Consultant Guidebook.

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Status

Terminated

Description

A Consultant whose Consultant Agreement has been terminated by Thirty-‐One because she remained Inactive for 12+ months or because of any other reason. (Will show inactive in the Virtual Office.)

What happens if I become Inactive? We realize that sometimes you’ll be unable to submit $200 in Personal Volume during a consecutive three-‐month period. If this happens, it’s possible for you to become Active again. When you become Inactive, we “deactivate” you and any Downline will roll-‐up to your Upline. This means that we deactivate your Replicated Website, your account on ThirtyOneToday.ca, your access to any Thirty-‐One Gifts mobile application specific to Consultants and your Consultant ID. But don’t worry – it’s very easy to reactivate; however, please note that you will not receive your Downline back. ∗

Inactive for 0-‐6 Months If you are Inactive for six months or less, it’s easy to become Active again – just submit an order for at least $200 in Personal Volume. You will keep your original Sponsor and Consultant ID; however, please note that you will not receive your Downline back. To regain your Active status, please contact Consultant Support at 855-‐Gifts31 (855-‐443-‐8731) or ordersupportcanada@thirtyonegifts.ca to let us know that you’re ready to submit an order for at least $200 in Personal Volume. We’ll reactivate you within 48 hours. If you don’t submit your order within 48 hours from the time we reactivate you, then we’ll deactivate you again. You’ll regain your Active status for the month during which you submit your $200+ order.

Inactive for 6-‐12 Months If you’re Inactive for 6-‐12 months, there are two ways to become Active again: •

Follow the process described in “Inactive for 0-‐6 Months” above. You will keep your original Sponsor and Consultant ID; however, please note that you will not receive your Downline back. OR

•

You can submit a new Consultant Agreement and purchase a new Enrollment Kit. You can sign up under a new Sponsor and you’ll be assigned a new Consultant ID.

Inactive for 12+ Months We’ll automatically terminate your Consultant Agreement if you’re Inactive for more than 12 months. To understand what happens when your Consultant Agreement is terminated, please read “Effect of Resignation or Termination” below. If you want to become a Consultant after being Inactive for 12+ months, please read “If my Consultant Agreement is terminated, may I rejoin Thirty-‐One?” © January 2016 Thirty-‐One Gifts Canada Inc.

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How can I stop being a Thirty-‐One Consultant? There are many different ways your Thirty-‐One business can come to an end. Either one of us can end our relationship at any time for any reason. When we use the term “Downline” in this section, it means the Consultants you sponsor and the Consultants sponsored beneath them.

Resignation You have the choice of resigning and terminating your Consultant Agreement at any time and for any reason by giving us notice. You can find the “Self Termination” form on ThirtyOneToday.ca (Access Resources > Policies & Forms > Self Termination Form). You can also contact CAGScanada@thirtyonegifts.ca to request a “Resignation” form, and then return the completed form to us by email (CAGSCanada@thirtyonegifts.ca) or fax (614-‐337-‐1459). When you resign, you’re responsible for notifying your Sponsor and any Downline Consultants. If you choose to resign, you will not be able to rejoin Thirty-‐One for six months. Please see “If my Consultant Agreement is terminated, may I rejoin Thirty-‐One?” for more details.

Termination by Thirty-‐One We’ll automatically terminate your Consultant Agreement if you’re Inactive for more than 12 months. We can terminate your Consultant Agreement at any time for any reason by giving you notice (in writing or email) of our decision. Some of the circumstances that may lead us to terminate your Consultant Agreement include: •

You don’t follow (or you act in a way that is inconsistent with) your Consultant Agreement or any of our policies and procedures.

•

You violate a law.

•

You don’t submit payments to us in a timely manner.

•

You discredit us, our reputation or our products.

•

You misrepresent our products or the Thirty-‐One opportunity.

You become insolvent or file for bankruptcy. We also reserve the right to terminate all Consultant Agreements upon 30 days’ written notice if we elect to: •

•

Stop operating our business.

•

Dissolve as a corporate entity.

•

Decide to stop distributing our products through direct selling.

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Effect of Resignation or Termination The termination of your Consultant Agreement (whether by you or us) will become effective after we’ve issued commission payments in the month following the month in which your Consultant Agreement was terminated. Upon termination of your Consultant Agreement: • You’ll no longer have the right to offer or arrange sales of our products and you must stop representing yourself as a Thirty-‐One Consultant. • We will terminate your right to use or access your Replicated Website, your account on ThirtyOneToday.ca, your access to any mobile application we provide for Consultants, and your Consultant ID. • We’ll pay commissions and bonuses you earned for the last full pay period you were Active prior to your termination. • You waive all of your rights to your Downline, including property rights and your right to receive future commissions, bonuses or other income resulting from sales by your Downline. • Your Downline will “Roll-‐Up” to the first level of your Sponsor. • You’ll lose any gift certificates, rewards, incentives, and credits you have earned for products and business supplies.

• You’ll promptly pay any amounts you owe us.

Returning Your Enrollment Kit and Business Supplies We offer business supplies and promotional materials, as well as products (purchased separately from the Enrollment Kit) at a discount for your convenience. You may return any Enrollment Kits and business supplies that you personally bought from us during the previous year at any time. We will refund you 90% of the net cost of the original purchase price so long as the returned item is “resalable,” which means: •

It is returned unopened and unused.

•

Its packaging and labeling haven’t been changed.

•

It hasn’t been personalized.

•

It is in “resalable condition,” which means it is in a condition that is “good enough” for us to resell at full price.

• It was not identified as nonreturnable, discontinued or seasonal when you bought it. The shipping and handling fees you paid to have your Enrollment Kit and business supplies shipped to you or to return those items to us are not eligible for a refund. If we paid you a commission on any of the items you return to us, we will deduct the amount of the commission from your refund. © January 2016 Thirty-‐One Gifts Canada Inc.

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You may cancel any services contracts or arrangements you have purchased, including personal website and e-‐newsletter services for a refund for any reason, provided you give us written notice (the “Cancellation Notice”) specifying the specific service(s) you want to cancel (the “Cancelled Service(s)”). Refunds will be provided for the Cancelled Service(s) pursuant to the policies below. In no circumstances will we refund you for amounts paid in respect of Cancelled Service(s) in any month PRIOR TO the calendar month in which the Cancellation Notice is delivered to us. •

Where the Cancellation Notice is provided to us prior to the 15th day of the calendar month, we will reimburse you for 100% of the amount paid for the applicable Cancelled Service(s) for that particular month, and you will not be required to make further payments for the Cancelled Service(s).

•

Where Cancellation Notice is provided to us on or after the 15th day of the calendar month, but prior to the start of a new calendar month, we will reimburse you for 50% of the amount paid for the applicable Cancelled Service(s) for that particular month, and you will not be required to make further payments for the Cancelled Service(s). The reduced refund amount reflects your use of the Cancelled Service(s) during the first half of the applicable month.

Account Suspension We may suspend your account if you owe us money or if we suspect you have violated one of our policies or procedures. If we suspend your account, you may not be allowed to place orders, receive compensation or incentives, register for company sponsored events or obtain other Consultant benefits until your account is current or the violation is resolved. We may deactivate your right to use or access your Replicated Website, your account on ThirtyOneToday.ca, your access to any mobile application we provide for Consultants and your Consultant ID.

Death In the unfortunate event of your death, we’ll pay your estate any commissions or other amounts you accrued before your death. Your Consultant Agreement will automatically terminate on the date of your death, and your Downline will Roll-‐Up to your Sponsor’s first level. Your Thirty-‐One business can’t be transferred to your estate or heirs.

If my Consultant Agreement is terminated, may I rejoin Thirty-‐One? There are three ways your Consultant Agreement can be terminated: 1. You decide to resign 2. You are Inactive for 12+ months and we automatically terminate your Consultant Agreement 3. We terminate your Consultant Agreement because you violated our policies and procedures If your Consultant Agreement is terminated for one of these three reasons, you may be able to rejoin Thirty-‐One. We reserve the right, at our sole discretion, to deny your request to rejoin Thirty-‐One.

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How to Rejoin To rejoin Thirty-‐One, you need to: •

Meet all of the qualifications to be a new Consultant

•

Submit a new Consultant Agreement

• Purchase a new Enrollment Kit When you rejoin Thirty-‐One, you can sign up under your original Sponsor or a new Sponsor. If you wish to rejoin with a new Consultant ID and Sponsor, it’s important to note that you must wait at least six months before you can apply to rejoin Thirty-‐One. If you were terminated because you were inactive for 12+ months, you are required to re-‐enroll either under your previous Sponsor or you can choose a new one.

Incentives and Rewards When you rejoin with a new Consultant ID, you’ll be eligible to earn any incentives we are offering to new Consultants. However, if you reactivate through your original Sponsor and retain your current Consultant ID, you won’t be eligible for new Consultant reward programs (like StartSwell Rewards) and you won’t count as a new recruit for purposes of contests and trip incentives.

Your Downline When your original Consultant Agreement is terminated or if you become Inactive, you waive all of your rights to your Downline, which “Rolls-‐Up” to the first level of your Sponsor. You will not get your Downline back when you rejoin or reactivate with Thirty-‐One.

May I take a leave of absence from my Thirty-‐One business? We know there are times when you may need to take time off from your Thirty-‐One business for personal reasons. We offer Consultants the opportunity to take leaves of absence under certain circumstances without impacting their status. All leave requests are subject to our approval at our sole discretion.

Personal Leave In certain circumstances, we may agree to allow, as a matter of contract, you to suspend your contractual obligations to us, on the grounds of personal leave issues, provided the total time during which the contractual obligations remain suspended does not exceed three consecutive months, or four months in total, in any one 12-‐month period. If we agree to such a suspension of obligations, we will allow Consultants and Senior Consultants to maintain Active status during the terms of the suspension (the “leave”), but we will not allow movement to any further status levels. For Directors (and above), you will continue to receive overrides on your Downline and the $1,000 in Personal Volume required to remain Qualified doesn’t need to be maintained during your leave. However, you MUST maintain all of © January 2016 Thirty-‐One Gifts Canada Inc.

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the other Maintenance requirements to keep your status (e.g., Team Volume, Organization Volume, and 4 QSCs). To request suspension of your contractual obligations, please complete the “Personal Leave Request” form available on ThirtyOneToday.ca (Access Resources > Policies & Forms > Personal Leave Request) and return it to CAGScanada@thirtyonegifts.ca at least 30 days in advance. Your leave request is subject to our approval at our sole discretion.

Military Leave We recognize there are instances where you or your spouse may be an active member of the Canadian military. In the event you and/or your spouse are deployed outside of Canada or outside of a province that Thirty-‐One Gifts Canada does business, you have choices. You may continue your Thirty-‐One business with some special restrictions and a Plan of Accountability in place or you may request for your account to be “on hold” during the deployment. If you would like to request that we place your account “on hold” during your deployment, please complete the “Military Leave Request Form” available on ThirtyOneToday.ca (access Resources > Policies & Forms > Military Leave) and return it to CAGS@thirtyonegifts.ca at least 30 days’ in advance. If we approve your request, your Downline will Roll-‐Up to the first level of your Sponsor and you won’t receive commissions or overrides for the length of your deployment. The “pass-‐by” rules will continue to apply during your military leave. Upon your return to Canada, you will be returned to Active status if you submit an order of at least $200 in Personal Volume. When you regain your Active status, your Downline will be transferred back to you.

What is the 2016 Career Path?∗ The table below summarizes our 2016 Career Path, including our “Paid At Titles,” maintenance requirements to attain each Paid At Title, and our expectations for individuals who attain each Paid At Title. For more information regarding the Career Path visit ThirtyOneToday.ca (Access Resources > About Thirty-‐One Gifts > Career Opportunity). *Please see Statement of Typical Participant Earnings on the last page of this Consultant Guidebook.

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Career Path

Consultant

Promotion Requirements •

• Senior Consultant

•

Director

Submit at least $200 in Personal Volume (PV) every rolling three months Qualify with $1,000 in PV 2-‐4 Personally Enrolled, Qualified and Active Consultants (PEQA) Submit $200 PV every rolling three months

Reward

•

25% Commission on PV Opportunity to participate in Consultant incentives 25% Commission on PV 2% Override on your Active Sponsored Consultants Opportunity to participate in Consultant Incentives

Expectations

• • •

Book Sell Sponsor

• •

Same as Consultant Engage New Consultants to Book, Sell & Sponsor

“Paid At” Maintenance Requirements

•

2-‐4+ Qualified, Sponsored and Active Consultants (QSC) Submit $200 PV every rolling three months

4+PEQA 25% Same as Consultant Must be • • • Consultants (Roll-‐ Commission Train your Generation “Paid-‐at” a • ups do not count) on PV 0, including hosting Director once Submit $1,000 PV 3% Personal team meetings every three • • every month Sales Bonus Communicate with your consecutive • A min. of $4,000 3% team months • • Team Volume (PV Generation 0 Recognize your team 4+ Qualified, • • + Generation 0 Override Develop your team Sponsored • Sales) 2% Make welcome calls to and Active • • Promotion occurs Generation 1 new GO Consultants Consultants • the month Override Send a monthly (QSC) • following DIQ $1,000 one-‐ Submit newsletter/recognition • • month* if time Director letter to GO $1,000 PV requirements are Promotion Attend, host or co-‐host every month • met Bonus**** company events A min. of • No Title $1,000 $4,000 Team • • Compression** Developing Volume (PV + Sales Director Generation 0 • Compression still Bonus***** Sales) applies*** Do not need 4 • new PEQAs to re-‐ promote *DIQ (Director in Qualification) Month – The first month a Consultant meets all Director Promotion Qualifications. As long as all nd th rd requirements are met in the 2 consecutive month, title will change on the 10 of the 3 consecutive month, and pay will be retroactive nd to the amount earned in the 2 month. Director Re-‐promotes must through DIQ. •

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Senior Director

•

• •

• • •

•

4+ PEQA Consultants (Roll-‐ ups do not count) 2 “Paid-‐At” Generation O Directors $1,000 PV every month A min. of $4,000 Team Volume and a min. of $12,000 in PV + GO + G1 sales No Title Compression** Sales Compression still applies*** Re-‐promotes and permanent roll ups count Do not need 4 new PEQAs to re-‐ promote

•

4+ PEQA Consultants (Roll-‐ ups do not count) 4 “Paid-‐At” Generation O Directors $1,000 PV every month A min. of $4,000 Team Volume and a min. of $20,000 in PV + GO + G1 + G2 sales No Title Compression** Sales Compression still applies*** Re-‐promotes and permanent roll ups count Do not need 4 new PEQAs to re-‐ promote

•

• • • • •

•

25% Commission on PV 5% Personal Sales Bonus 5% Generation 0 Override 3% Generation 1 Override 2% Generation 2 Override $1,000 Developing Director Bonus***** $1,000 one-‐time Building Bonus (2016 only)******

• •

25% Commission on PV 7% Personal Sales Bonus 7% Generation 0 Override 3% Generation 1 Override 2% Generation 2 Override Up to $3,000 Developing Director Bonus***** $3,000 one-‐time Building Bonus (2016 only)******

• •

•

Same as Director Make recognition calls to new Directors in GO Host or co-‐host company events

•

• •

Must be “Paid-‐ at” a Sr. Director once every 12 consecutive months 4+ Qualified, Sponsored and Active Consultants (QSC) $1,000 PV every month A min. of $4,000 Team Volume and a min. of $12,000 in PV + G0 + G1 Sales

Executive Director

•

• •

• • •

•

• • • • •

•

• •

Same as Senior Director Make recognition calls to new Senior Directors in GO Attend events sponsored by the Thirty-‐One Home office (Conference) Participate in Leadership Webinars Host, co-‐host or support company events

•

• •

Must be “Paid-‐ at” an Executive Director once every 12 consecutive months 4+ Qualified, Sponsored and Active Consultants (QSC) $1,000 PV every month A min. of $4,000 Team Volume and a min. of $20,000 in PV + G0 + G1 + G2 Sales

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Senior Executive Director

4+ PEQA Consultants (Roll-‐ ups do not count) 8 “Paid-‐At” Generation O Directors $1,000 PV every month A min. of $4,000 Team Volume and a min. of $36,000 in PV + GO +G1 + G2 sales No Title Compression** Sales Compression still applies*** Re-‐promotes and permanent roll ups count Do not need 4 new PEQAs to re-‐ promote

•

• •

• • •

•

25% Commission on PV 9% Personal Sales Bonus 9% Generation 0 Override 3% Generation 1 Override 2% Generation 2 Override Up to $10,000 Developing Director Bonus***** $5,000 one-‐time Building Bonus (2016 only)******

•

• • • • •

•

Same as Executive Director Make recognition calls to new Executive Directors in GO

• •

Must be “Paid-‐ at” a Senior Executive Director once every 12 consecutive months 4+ Qualified, Sponsored and Active Consultants (QSC) $1,000 PV every month A min. of $4,000 Team Volume and a min. of $36,000 in PV + G0 + G1 + G2 Sales

•

• •

National Executive Director

•

• •

•

4+ PEQA Consultants (Roll-‐ups do not count) 16 “Paid-‐At” Generation O Directors $1,000 PV every month A min. of $4,000 Team Volume and a min. of $200,000 in PV + GO + G1 + G2 sales No Title Compression** Sales Compression still applies*** Re-‐promotes and permanent roll ups count Do not need 4 new PEQAs to re-‐promote

•

• •

•

25% Commission on PV 9% Personal Sales Bonus 9% Generation 0 Override 4% Generation 1 Override 2% Generation 2 Override Up to $10,000 Developing Director Bonus***** $7,500 one-‐ time Building Bonus (2016 only)******

• •

Same as Senior Executive Director Make recognition calls to new Senior Executive Directors in GO

•

Must be “Paid-‐at” a National Executive Director once every 12 consecutive months 4+ Qualified, Sponsored and Active Consultants (QSC) $1,000 PV every month A min. of $4,000 Team Volume and a min. of $200,000 in PV + G0 + G1 + G2 Sales

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**Title Compression is when a Leader does not meet her “Paid-‐At” title for a particular month and her structure rolls up to her upline Leader for that particular month only. *** Sales Compression is when a Leader does not meet her “Paid-‐At” title for a particular month and her sales volume rolls up to her upline Leader for that particular month only. **** A one-‐time Director Promotion Bonus is earned when all Director qualifications are met for the first three consecutive months following the DIQ month. (Re-‐promotes are not eligible for this Director Promotion Bonus) ***** Developing Director bonuses are paid when you promote new Directors and above and meet the “Paid-‐At” requirements of your current title during the first three months for the upper-‐level Director. Refer to the complete Career Path on the ThirtyOneToday.ca Director’s page for all qualifications. ****** Building Bonus is a bonus paid when you meet the upcoming 2017 Leader maintenance requirements for three consecutive months starting anytime in 2016. The Building Bonus eligibility is based on your existing leadership title as of December 2015 month-‐end and earning period begins with January 2016 month-‐end. If you promote to a higher level in 2016, you are eligible to earn another one-‐time bonus at that level. Compression sales will count, but compression structure will not count toward the Building Bonus. PEQA = Personally Enrolled, Qualified and Active Consultant QSC = Qualified Sponsored and Active Consultant PV = Personal Volume Team Volume = PV + GO sales Organization Volume = OV All PV +GO + G1 + G2 sales Generation 0 = GO All Consultants under a Director, down to and including the next Director Generation 1 = G1 All Consultants and Directors who are under a GO Director, down to and including the next Director Generation 2 = G2 All Consultants and Directors who are under a G1 Director, down to and including the next Director Paid-‐At Title -‐ This is the title you maintained during the prior month. You must continue to maintain your “Paid-‐At” requirements in order to be paid at your title.

Promoting to Director You’ll become a “Director in Qualification” (“DIQ”) during the first month in which you satisfy all requirements to promote to the Paid At Title of Director. As long as all requirements are met in the 2nd month, title will change on the 10th of the 3rd month, and pay will be retroactive to the amount earned in the 2nd month. You’ll be required to agree to a Leadership Agreement, which discusses the requirements and expectations for Directors. If you don’t want to promote to Director, please complete the “Director Promotion Waiver” available on ThirtyOneToday.ca (Access Resources > Policies & Forms > Director Promotion Waiver) and return it to CAGScanada@thirtyonegifts.ca during or before the month you DIQ. Also, if you decline your promotion, this doesn’t stop applicable “pass-‐by” rules.

Development Obligations When you Sponsor new Consultants, it’s important that you support and train them. You’re expected to: •

Have regular contact and communication with your recruits.

•

Motivate and train your recruits in Thirty-‐One product knowledge, effective sales techniques, and our Career Path.

•

Monitor your recruits to ensure that they are following all of our policies and procedures and not engaging in any illegal or unethical conduct in connection with their Thirty-‐One businesses.

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Permanent Roll-‐Ups When a vacancy occurs in a personal group, each Consultant in the first level immediately below the inactive or terminated Consultant will be moved to the first level of the inactive or terminated Consultant’s Sponsor. For example, Ann sponsors Bonnie, and Bonnie sponsors Cathy, Chloe, and Charlotte. If Bonnie terminates her business, then Cathy, Chloe, and Charlotte will permanently “Roll-‐ Up” to Ann’s first level.

Pass-‐By A “pass-‐by” occurs when a Consultant promotes past the level of her Sponsor. • Pass-‐by to Director: If a Consultant promotes to Director before her Sponsor, then the Sponsor will have three months to promote to Director (or above). If the Sponsor fails to promote by the end of the three-‐month period, then the Consultant she sponsored will be reassigned to the next qualified Upline Director (or above). Here is an example of how this works. Connie, a Consultant, becomes a DIQ in January and promotes to Director in February. Connie’s Sponsor, Michelle, is still a Consultant. Michelle must become a DIQ during April and promote to Director by the end of May (March, April, May). If Michelle doesn’t promote to Director in May (the status change would be reflected after the commission run in June), then Connie will permanently roll up to Michelle’s Director. • Pass-‐by to Senior Director: If a Director promotes to Senior Director (or above) before her Sponsor (who is a Director), then her Sponsor will have 12 months to promote to Senior Director (or above). If the Sponsor fails to promote to Senior Director (or above) by the end of the 12-‐ month period, then the recruit will be reassigned to the next qualified Upline Senior Director (or above). •

Pass-‐by to Executive Director: If a Senior Director promotes to Executive Director (or above) before her Sponsor (who is a Senior Director), then her Sponsor will have 12 months to promote to Executive Director (or above). If the Sponsor fails to promote to Executive Director (or above) by the end of the 12-‐month period, then the recruit will be reassigned to the next qualified Upline Executive Director (or above).

•

Pass-‐by for Executive Director and above: Once a Consultant has attained the title of Executive Director (or above), pass-‐bys no longer apply and she is entitled to keep her recruits regardless of her Paid at Title (as long as she continues to meet her Paid at Title requirements).

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How does sponsoring new Consultants work? Sponsoring new recruits is one of the best things you can do to grow your Thirty-‐One business.

Income Claims We’re committed to doing the right thing and following good business practices, as well as all laws regulating our industry. We’ve developed the Thirty-‐One Statement of Typical Participant Earnings (“SOTPE”), to provide truthful, fair, reasonable, timely, and comprehensive information about our Consultants’ income. We update the SOTPE annually. You can print or download the current SOTPE without charge from ThirtyOneToday.ca (Access Resources > Policies & Forms > Statement of Typical Participant’s Earnings) or under the “Become a Consultant” tab of our corporate website www.thirtyonegifts.ca. When you present or discuss the Thirty-‐One opportunity or Career Path to a potential recruit, you can’t make income projections, income claims, or disclose your Thirty-‐One income (including the showing of cheques, copies of cheques, bank statements, or tax records) unless you provide the potential recruit with a current copy of the SOTPE in a timely manner during your conversation. The SOTPE must be presented to a potential recruit anytime you present or discuss our Career Path or make any claims or representations about your Thirty-‐One income, including: •

statements of actual earnings

•

statements of projected earnings

•

statements of earnings ranges

•

income testimonials

•

lifestyle claims

•

hypothetical claims

•

You must provide a current copy of the SOTPE to potential recruits at any non-‐public meeting (e.g., a home meeting, one-‐on-‐one, regardless of venue) where our Career Path is discussed or any type of income claim is made.

Lifestyle claims typically include statements (or pictures) involving large homes, luxury cars, exotic vacations, or other items suggesting or implying wealth. They also consist of references to the achievement of your dreams, having everything you always wanted, and are phrased in terms of “opportunity” or “possibility” or “chance.” Lifestyle claims include things like “My Thirty-‐One income exceeded my salary after six months in the business,” or “My Thirty-‐One business has allowed me to quit my office job and stay at home with my kids.” Here are some more detailed rules you need to follow when discussing our Career Path and making income claims:

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•

In any meeting that is open to the public where our Career Path is discussed or any type of income claim is made, you must provide every potential recruit with a copy of the current SOTPE and you should display a large version in the front of the room in reasonably close proximity to the presenter.

•

In any meeting in which any type of video display is utilized (e.g., monitor, television, projector, etc.) a slide of the current SOTPE must be displayed continuously throughout the duration of any discussion of our Career Path or any income claim.

•

If you create your own sales materials which include income claims or information about our Career Path, you must incorporate the current SOTPE into the materials before submitting them to CAGScanada@thirtyonegifts.ca for review and approval.

Since complying with the law is extremely important to us, when you know or suspect that another Consultant is making representations, which do not comply with the requirements in this section, you will contact us as soon as possible to inform us of the relevant facts of the situation so that we can attempt to resolve the situation.

New Recruit Applications The “How do I become a Thirty-‐One Consultant?” section of this Consultant Guidebook has information about how to submit applications for new Consultants. We will review, approve, and record new enrollments within two business days of the date on which we receive a complete, accurate, and signed/acknowledged Consultant Agreement and valid payment for the Enrollment Kit. Depending on which province you live in, you may need to obtain an identification card from Thirty-‐One Gifts or you may need to get a license from the province before you can start selling as a Consultant. For more information regarding obtaining an identification card or a license from the province, visit ThirtyOneToday.ca (Access Resources > Policies and Forms > Alberta ID Card) (Access Resources > Policies and Forms > Canadian Province Licenses). We won’t honour requests to “hold” applications. If an application is rejected, the entire application must be resubmitted. We will send the Sponsor an email confirmation once we have accepted the new Consultant’s application. If the Sponsor doesn’t receive this confirmation within two business days of submission, she should contact us to ask about the status of the application. It’s the Sponsor’s responsibility to make sure we have accepted her new recruits prior to the close of any applicable bonus or incentive period. We’re not responsible for delayed acceptance of applications because of late deliveries, misrouted or lost applications, or applications with invalid or incomplete information.

Recruiting From Other Direct Selling Companies Our Consultants are not allowed to intentionally contact the consultants/distributors of other direct selling companies to recruit them for Thirty-‐One. However, if someone affiliated with another direct selling company contacts you about becoming a Consultant, then you may respond to her inquiry as you would any other potential recruit.

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Soliciting Thirty-‐One Customers and Consultants You agree that during the term of your Consultant Agreement and for six (6) months after it ends, you will not (and will not attempt to) directly or indirectly (on behalf of yourself or any other person or entity): •

solicit or induce any Consultant to terminate or alter her business relationship with us, or

•

recruit, sponsor, solicit, enroll, encourage or influence (in any way) other Consultants you personally sponsored or Thirty-‐One customers, with whom you dealt with directly during the prior twelve (12) months while acting as a Thirty-‐One Consultant, to enroll or participate in another multilevel marketing, network marketing or direct selling opportunity which sells products which are the same as, or substantially similar to, or in competition with, the products sold by Thirty-‐One Gifts at the time of the termination of the Consultant Agreement.

You understand and agree that:

•

Any effort to limit the geographic scope of this non-‐solicitation provision would render it wholly ineffective because direct selling is conducted through networks of independent contractors dispersed across Canada, and business is commonly conducted via the internet and telephone.

•

This non-‐solicitation provision will apply nationwide.

•

This non-‐solicitation provision will survive the termination of your Consultant Agreement.

Changing Sponsors We think it’s important to respect and protect the hard work our Consultants devoted to building their teams. Although there are some narrow exceptions to this rule, we don’t allow Consultants to change Sponsors.

How will I receive payments from Thirty-‐One?

General As a Consultant, you’ll be eligible to receive commissions, bonuses and overrides on your sales of Thirty-‐ One products and your sales generating activities, including building a Downline organization. You must be Active and in compliance with all of our policies and procedures in order to be eligible to receive commissions, bonuses and overrides. Our Career Path contains information about the compensation our Consultants may receive. Please read it carefully. If you have any questions, please ask your Sponsor or contact us at CAGScanada@thirtyonegifts.ca.

Payment Schedule We pay commissions twice a month: •

Payments on orders submitted from the 1st through the 15th of the month will be paid on the 25th of the month. (This payment is sometimes called your “Rebate.”)

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•

Payments on orders submitted from the 16th through the last day of the month will be paid on the 10th of the following month. This payment will also include any overrides you are eligible to receive.

If the payment dates listed above fall on a holiday or a weekend, we will make the payment on the prior business day.

Form of Payment We will issue payments to the name of the Consultant listed on your Consultant Agreement. You will receive your payments through direct deposit to your bank account. Payments of less than $20 are not eligible for direct deposit. If your payment for a single month totals less than $20, we’ll credit the payment amount to your account. Once your account equals at least $20, we’ll issue a direct deposit payment. You must submit any changes to your bank account or direct deposit information to us at least 10 days prior to a commission payment date in order for the change to be effective for that commission payment. If your direct deposit is rejected, you will receive payment from Thirty-‐One Gifts via cheque and will be charged a $4 fee for each commission cheque you receive.

Bank Fees If you provide us with incorrect information about your bank account (e.g., the wrong account number for direct deposits), we may incur fees from your bank to stop or recover your payment. If this happens, we may pass these fees on to you by offsetting the amounts from your Thirty-‐One account.

Errors or Questions If you believe we have made any errors regarding your payments, charges, or Downline, you must give us written notice within 30 days of the date of the purported error. We’re not responsible for any errors, omissions or problems you don’t report to us within 30 days.

Offsets We have the right to offset any amounts you owe us (including the repayment of commissions resulting from product returns) against the commissions or other amounts we owe you.

Do I have to pay taxes on the income I receive from Thirty-‐One? Yes, you’re required to report your commissions and other earnings from your Thirty-‐One business as income in your tax filings each year. Your other earnings include your overrides, free products, hostess and other business credits, trips, etc. For tax purposes, you are “self-‐employed” and it’s important that you keep complete and accurate records of your business income and expenses. There are some tax benefits for self-‐employed individuals that may allow you to deduct certain business expenses. We strongly recommend that you talk with your own tax advisor to learn how the tax laws apply to your Thirty-‐One business.

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As a Consultant, you’re a self-‐employed, independent contractor of Thirty-‐One. You’re not an employee of Thirty-‐One and we won’t issue you a T4, or a Form 2200 – Declaration of Conditions of Employment. The Canada Revenue Agency (“CRA”) requires us to send a T4A form to every Canadian Consultant who earns $500 or more during the previous calendar year. By February 28th of each year, we will issue you a T4A form for the previous calendar year, if applicable. Your T4A form will include all of your earnings from your Thirty-‐One business, including your commissions and the other earnings described above. You’ll have to report the income from your Thirty-‐One business on Form 2125 – Statement of Business or Professional Activities, as well as any provincial or territorial equivalent form. Because you are self-‐ employed, you may be able to deduct certain business expenses like the use of your vehicle or home office. You can discuss this with your tax advisor and/or contact the CRA for more information at www.cra-‐arc.gc.ca or 1-‐800-‐959-‐8281. For greater certainty in this regard: • Income Taxes -‐ You’re responsible for the payment and/or withholding of all relevant federal, provincial and/or local income taxes, self-‐employment taxes and any and all other taxes required in respect of your business and your purchases, under federal, provincial, or other applicable taxing laws. You acknowledge that as an independent contractor, you will be not be treated as an employee for purposes of, but not limited to, federal and provincial income tax source withholding requirements, provincial employment standards rules, provincial workers’ compensation deductions, EI and CPP deductions, and that we are not responsible for any withholdings, and will not withhold or deduct taxes of any kind from your bonuses or commissions. You’re responsible for paying local, provincial, and federal taxes due from all compensation earned as a Thirty-‐One Consultant, and for all other federal or provincial tax compliance obligations imposed on your business. Some exceptions may exist, and we reserve the right to issue any return slips and withhold any amounts required by law. • Sales Taxes -‐ You will not be treated as an employee for purposes of the GST/HST, QST, PST and other like sales taxes (including any future harmonized sales taxes). If we are required to charge any such taxes in respect of our supply of goods or services to Consultants or to our direct retail customers, we will collect and remit these taxes in respect of our sales as appropriate. However, we are not responsible for collecting or remitting any sales taxes on your behalf. You’re responsible for collecting and remitting all applicable local, provincial, and federal sales taxes, and for all other federal or provincial tax compliance obligations imposed on your business, although, as set out below, we may at our discretion enter into sales tax collection agreements with the federal and provincial taxing authorities. • Collection Agreements/Arrangements – Notwithstanding the foregoing, we reserve the right to enter into sales tax collection agreements with the federal and provincial taxing authorities which could relieve you of the burdens of charging, collecting or remitting sales taxes (including GST/HST, QST and applicable PST). Where applicable, we will notify you of the implementation of such agreements, and will charge and collect sales taxes accordingly. Where we choose to enter into a sales tax collection agreement, you agree that we may jointly elect on your behalf to have the applicable procedures, including section 178 of the Excise Tax Act, apply where approval has been granted by the applicable tax authority. Where we have © January 2016 Thirty-‐One Gifts Canada Inc.

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been approved to operate under any such agreements, you agree to follow the appropriate procedures.

What are the policies for offering Thirty-‐One products for sale? We are a party plan direct selling company. The success of your Thirty-‐One business depends on your relationships with customers and fellow Consultants. We encourage you to be creative in your sales strategies, but your first approach should always be home parties. Our sales policies are intended to promote personal, long-‐term relationships with customers instead of one-‐time or short-‐term sales.

Truthfulness and Integrity Whenever you are offering for sale our products, it’s very important that you act with integrity. You need to truthfully represent Thirty-‐One, yourself, and our products. Any misleading, deceptive or unfair sales practice is not allowed and could result in the termination of your Consultant Agreement. Your explanation and demonstration of our products must be truthful and complete, especially when you discuss our prices, return policy, payment terms, and delivery. It’s important that you build personal relationships with customers based on mutual respect and trust. You should only contact Customers during reasonable hours of the day/evening and a “hard sell” is not appropriate. If you’re asked to stop a sales presentation or contacting a customer, please honour her request immediately. Also, if you decide to offer door prizes, remember that all guests must have equal opportunity to win the door prize and you can’t require a purchase to be eligible for a door prize.

Consultant Support

We’re here for you! We’re proud to offer you a Consultant Support team to help you with the questions you will undoubtedly have as you operate your Thirty-‐One business. The Consultant Support team’s current hours of operation are posted on ThirtyOneToday.ca (under “Support” in the upper right hand corner and then click “please select your topic”. You can reach Consultant Support at: Email: ordersupportcanada@thirtyonegifts.ca Phone: 855-‐Gifts31 (855-‐443-‐8731) Fax: (614) 337-‐1154

Legal Compliance

Consultants are expected to purchase and sell Thirty-‐One products according to the terms, conditions and policies stated in the Consultant Agreement (including the Consultant Guidebook). Consultants are also expected to comply with local provincial and federal laws and regulations applicable to all aspects of your Thirty-‐One business including but not limited to Canada’s Anti-‐Spam Legislation (CASL) and applicable licensing requirements.

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Sales Receipts and Customer Cancellation Rights

We provide “triplicate,” order forms to be used for parties and other “in-‐person” sales. The order form also serves as the Customer’s official receipt. All Consultants making “in-‐person” sales to Customers (including any sales subject to provincial direct selling requirements) will ensure that the Customer is provided with a copy of the current Thirty-‐One order form, properly completed, and signed by both the Consultant and the Customer. The order form sets out, among other things, our Ninety-‐Day Limited Warranty and the Buyer’s Right to Cancel afforded to customers under provincial law. You’re required by law to tell customers about their right to cancel orders within ten business days and to make sure that all information fields in the order form are completed including: •

the date of the order;

•

name and address of the Consultant arranging the sale; and

• the signature of the Consultant and the Customer, and the location where the form was signed. If a customer cancels an order within the applicable cancellation period, you must promptly refund her money (as long as any products she received are returned to you in substantially the same condition). This includes an order for personalized products. If a customer cancels an order that you’ve already submitted to us, please contact Consultant Support at 855-‐Gifts31 (855-‐443-‐8731) or ordersupportcanada@thirtyonegifts.ca. You will need to keep your copy of each sales receipt for seven (7) years and provide a copy to us if we ask for it. If a Customer purchases products online through your Replicated Website (www.mythirtyone.ca), they will be required to positively accept the sales contract during the order process, and will then be provided with an electronic receipt with printable evidence of the sales contract, and otherwise providing disclosure as required by provincial law. Consultants will be provided with a copy of each electronic receipt for their own records, and shall retain it for at least seven (7) years, and we will maintain a copy for our records. It’s very important that you protect Customers’ personal and credit card information. Please see “Customer Payments and Protecting Customer Information” for more details.

Licenses Some local governments might have rules or ordinances that limit how you can conduct your Thirty-‐One business. We recommend that you contact your local government office to find out if you’re required to get any licenses to run your Thirty-‐One business. If you live in a subdivision, condominium or apartment complex, then you should check with your homeowners association or landlord to find out if there are any rules about operating a home-‐based business. It is your responsibility to obtain any licenses you need to operate your Thirty-‐One business.

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No Exclusive Territory

You’re an independent contractor not a franchisee. We don’t grant our Consultants exclusive territories, so you may offer to sell our products and sponsor new Consultants throughout any province we authorize you to sell and recruit within.

Personalized Products Our personalization services are a very important part of the Thirty-‐One experience. We believe our personalization services set our products and our brand apart. Although we never want to disappoint you or Customers, there are legal and policy limits to the personalization requests that we will fulfill. We have posted Personalization Guidelines on ThirtyOneToday.ca (Access Resources > Business Tools > Personalization) to assist you in: •

Helping our Customers understand what personalization requests we cannot fulfill

•

Avoiding damage to the Thirty-‐One brand

•

Avoiding the infringement of the trademarks of others

• Reducing potential legal liability for both Thirty-‐One and Customers Most fabric patterns have variations in print, so be sure Customers choose a colour of thread that will show up on ALL colours in a pattern, no matter where the words or initials are placed. This is particularly important when you show a customer what a print and thread colour may look like together on the new personalization app. The app is only intended to give an example of personalization on that product and not designed to be an exact replica of the product that will be delivered to the Customer. It’s important that you review and understand the Personalization Guidelines before you begin selling Thirty-‐One products. Personalized items cannot be returned to us unless there are manufacturer defects. Once the order is submitted, personalized orders cannot be changed. You’re responsible for double-‐checking personalization requests prior to submitting orders. It’s important to understand that customers have a legal right to cancel their orders for personalized products within ten days. Please see “Sales Receipts and Customer Cancellation Rights” above for more information about this. If you or a customer has an item personalized by someone other than Thirty-‐One, this will void our product warranty and the item can’t be returned or exchanged.

Product Availability We do our best to keep all of our products in stock for quick shipment, but sometimes the demand for a popular item will exceed our supply. When this happens, we’ll put the item on our “Stop Sell,” “Backordered,” “Discontinued,” “Split Ship,” “Low Inventory Alert” or “While Supplies Last” lists, which are posted in the Business Update on ThirtyOneToday.ca. By checking these lists prior to each party, you can make sure you don’t sell products that are no longer available and you’ll be able to set customer expectations about when they will receive their orders.

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If an item is on backorder, the order for that item can be cancelled. If an item is no longer available, we’ll cancel the order. In either case, we’ll credit you or the customer (depending on the original payment method) for the cost of the cancelled item. We’ll also deduct any commission or credits for incentive programs you received for the cancelled item.

Selling for Other Direct Selling Companies (Senior Executive Director and Above) As a Thirty-‐One Consultant, you are an independent contractor and the owner of your personal business. Being an effective Thirty-‐One Leader requires an additional commitment of your time; therefore, upon your promotion to Senior Executive Director or above, you agree that Thirty-‐One will be the only direct selling company you will represent. Our expectation at the Senior Executive Director level and above is that you will continue to spend time working and growing your personal business as well as commit to leading and mentoring your team. As a Senior Executive Director or above, you should consistently Celebrate, Encourage and Reward every opportunity to help HER grow and find HER fulfillment, satisfaction and, perhaps most important, economic freedom. Please review our Career Path for a complete list of all Consultant levels.

Selling Other Brands or Products We don’t prohibit you from participating in other businesses, including other direct selling businesses (excluding Senior Executive Directors and above). However, you have to run your Thirty-‐One business separately from your other business. This means that you can only sell Thirty-‐One products at Thirty-‐ One parties and events, and you can’t promote, demonstrate, sell or display any other businesses’ products or promotional materials at these events or in your communications with Thirty-‐One Customers (e.g., email signatures or websites that contain the Thirty-‐One name and another business name aren’t permitted). As a Consultant, you will have access to information about Thirty-‐One Customers and other Consultants (e.g., names, contact information, etc.). This is confidential information that belongs to us, and you can only use it to support your Thirty-‐One business. We don’t allow you to use this information or share it with anyone else for any other purpose. You may not contact Thirty-‐One customers or Consultants to offer them products or services other than official Thirty-‐One products. For example, you may not contact Thirty-‐One customers or other Consultants to offer/sell them: •

Any training materials/tools or marketing materials/ideas you’ve created

•

Any other products or services, including t-‐shirts, jewelry, crafts or other items created by you or someone else (regardless of whether items include the Thirty-‐One name/logo).

Discounting Thirty-‐One Products We are pleased to offer you a discount on our products, and we hope you’ll use it to buy products for yourself or to give as gifts. We have to protect the value of our brand and provide a level playing field for all of our Consultants. Therefore, you can’t “undercut” the retail prices of our products by widely sharing your discount. Sharing an ongoing discount at your parties, through your Replicated Website (www.mythirtyone.ca) like “order online today and I’ll rebate you 10%” or any other sales channel (like Facebook) is not allowed. This behaviour is unfair to us and your fellow Consultants. © January 2016 Thirty-‐One Gifts Canada Inc.

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We do allow you to offer limited, short-‐term incentives to Customers only if: •

The offer is to a small group of Customers (NOT all Customers or anyone who can see your website or public Facebook page or profile).

•

The offer lasts for seven days or less.

• You offer incentives no more than once per month. Examples of these limited incentives include offering a discount to someone who books a party or offering free shipping on orders over a certain amount. If you decide to offer a limited incentive, you will incur its cost.

Buying Extra Products and Improper Enrollment of Consultants It’s important that you always act with honesty and integrity in conducting your Thirty-‐One business. You won’t be successful if you buy products or engage in any other scheme just to qualify for Consultant status or Paid At Title advancement, incentives, commissions, overrides, bonuses, sales contests, promotions, or Personal Volume requirements. Please purchase only the amount of products you reasonably expect to use or sell to Customers during a single month. You can keep samples to use at parties and a small quantity of products on hand for customers who may need something at the last minute. You must never engage in the following activities: Buying Extra Products •

Buy products or engage in any other scheme just to enroll and/or qualify for Consultant status or Paid-‐At-‐Title advancement, incentives, commissions, overrides, bonuses, sales contests, promotions, or Personal Volume requirements.

•

Submit one of your parties or Customer orders under a Downline Consultant to advance you or her.

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Represent to potential recruits and/or customers that there is any obligation for a Consultant to buy products or business supplies beyond the Enrollment Kit.

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Represent to potential recruits and/or customers that commissions, overrides or other earnings can be obtained solely from purchasing inventory rather than arranging for sales of products to customers.

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Keep excessive inventory. You may not “inventory load” or encourage other Consultants to do so.

Improper Enrollment of Consultants •

Enroll individuals (real or fictitious) as Consultants without their knowledge and permission.

•

Enroll an individual who resides at the same household as a current Consultant.

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Enroll an Active Consultant within a different line of sponsorship. We don’t allow recruitment of Consultants from one sponsorship line to another.

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Purchase an Enrollment Kit for a new Consultant.

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Swap an Enrollment Kit in return for products and services.

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•

Represent to potential recruits that commissions, overrides or other earnings can be obtained solely by enrolling new recruits, rather than arranging for sales of products to Customers.

If you engage in any of these unethical behaviours, then you may be subject to contractual penalties including possible termination of your Consultant Agreement.

Recruitment Fees Prohibited To ensure our compliance with the Competition Act, we strictly prohibit our Consultants from giving “consideration for the right to receive compensation by reason of the recruitment into the plan of another participant in the plan who gives consideration for the same right.” While Consultants have the right to sponsor other Consultants, we don’t pay any bonuses, commissions or other remuneration, or allow Consultants to make similar payments, for mere sponsoring/enrolling. You understand that there is only one revenue generating event for a Consultant, namely the sale of Thirty-‐One products to retail Customers, and acknowledge that all commissions and other remuneration (including overrides, bonuses, incentives and awards) shall be paid solely as a consequence of a Consultant’s supply of the services of arranging for same and any voluntary training, motivation and marketing efforts related to same shall be construed as incidental thereto. Your remuneration will be paid solely as a consequence of a supply of the service of arranging for the sale of Thirty-‐One products to retail Customers. No remuneration (including overrides, bonuses, incentives and awards) shall be paid to anyone for the mere sponsorship or enrollment of any other Consultant. You are strictly prohibited from making or representing that compensation is payable for anything other than arranging for the sale of goods to retail Customers.

Ordering As a Consultant, you will generally place three types of orders: •

Party Orders: Orders of $200 or more in Personal Volume.

•

Retail Orders: Orders of less than $200 in Personal Volume.

•

Business Supply Orders: We offer a variety of business supplies (including products) at a discount to assist you in running your Thirty-‐One business.

You’re responsible for: •

Complying with all of our policies and procedures for ordering, which are located on ThirtyOneToday.ca (Improve My Skills > Selling > Submitting Orders).

•

Submitting all orders through your Virtual Office on ThirtyOneToday.ca (Manage My Business > Parties or Orders > Open Orders).

•

Including full and proper payment when orders are submitted.

Placing regular, timely orders following the established order-‐submission and payment schedules. Once you submit an order through your Virtual Office, it cannot be changed! •

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Order Deadlines and Site Downtime All Party Orders and Retail Orders must be successfully submitted before midnight of your local time zone on the last calendar day of the month in order to be included in your Personal Volume for that month and to be counted for sales contests, incentives, etc. We reserve the right to require different order deadlines for special order types. We strongly recommend that you submit party orders promptly after the party is closed. Don’t wait until the end of the month to submit orders! You understand and agree that our website may be shut down from time to time for maintenance or for reasons beyond our reasonable control. We won’t be liable to you for any damages you may incur because of any website shutdown, Internet transmission delays, processing time on our servers, or inability to access our website or your Virtual Office for any reason.

Customer Payments and Protecting Customer Information We will process credit card payments from customers. However, you’re responsible for collecting Customers’ payments. If a Customer’s credit card is declined, you can remove that Customer’s items from the Party Order or you can collect another form of payment from the customer before submitting the Party Order. We’re not responsible for declined credit cards. Here are some rules you need to know about customers’ credit card payments: •

The billing address for the credit card must match the customer’s address on the order form. If it doesn’t match, the credit card company may not accept the charge.

•

You should process credit cards carefully; making sure the proper amount is charged only once, and avoiding multiple authorizations.

•

You should process orders as close as possible to the time you will close and submit your party, because the credit card company may not honour “old” authorizations.

•

The order form is the only place where a customer’s credit card number should be written or kept. Once you have submitted the order through your Virtual Office, you need to black out all but the last four digits of the credit card number on the order form.

It’s also very important that you take all reasonable steps to protect Customers’ credit card information (which is considered sensitive personally identifiable information) and other “Personally Identifiable Information.” So, what is this? “Personally Identifiable Information” is information that can identify an individual. It is broadly defined, and includes things like an individual’s name, postal address (even just the postal code alone), email address, phone number, IP address, social media user name or identifier, products they have ordered, and similar types of information. There is also “sensitive” PII for which you should take additional measures to protect. Sensitive PII would include an individual’s:

•

Social Insurance or government identification number

•

Driver’s license number or government-‐issued identification card number

•

Bank account number, or credit or debit card number, or chequing account number.

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You should not disclose a Customer’s Personally Identifiable Information to anyone else – including spouses, hostesses, or other Consultants. You’re responsible for: •

Implementing and following your own privacy policy as discussed further in the Consultant Application and Agreement.

•

Taking steps to protect Personal Information, especially PII, from unauthorized access and ensuring it’s not shared with anyone.

•

Covering all but the last four digits of credit card numbers on order forms with a black marker (on both front and back sides of the order form) after submitting orders through your Virtual Office on mythirtyone.ca (It is not necessary to record credit card numbers on order forms if using the mobile app for orders and payments)

•

Destroying order forms and any other document that have Personally Identifiable Information after it is no longer legally required to be maintained (typically seven years).

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Safely and promptly discarding all Personally Identifiable Information that you have once it is no longer needed.

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Making sure the computer you use to access your Virtual Office on mythirtyone.ca or any secured Thirty-‐One website is password-‐protected and is using an internet security tool that includes antivirus, antispyware and firewall technology that is updated regularly.

•

Keeping your Virtual Office secure -‐ Your Virtual Office contains sensitive information about you and your Customers, it is important to protect it with a strong password and don’t share it with anyone

•

Having a secure connection to your Virtual Office on mythirtyone.ca and any secured Thirty-‐One website. This means you should make sure that your home Wi-‐Fi connection is secure and you should not connect to your Virtual Office from any “public” Wi-‐Fi connections like restaurants and Internet cafes.

•

Not accessing your Virtual Office on mythirtyone.ca or any secured Thirty-‐One website through any type of mechanical, scripted, automated or robotic means.

•

Not accessing your Virtual Office through any public kiosk, public use computer or other untrusted computer system.

Shipping and Handling We may charge shipping and handling fees on all orders, including Party Orders, Retail Orders, Business Supply Orders, and orders for Enrollment Kits, StartSwell kits and add-‐on kits (except free add-‐on kits). The current shipping and handling fees are explained for each order type on ThirtyOneToday.ca (Improve My Skills > Selling > Submitting Orders).

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Address Changes for Orders Once an order is submitted to us, it can’t be changed. If an address change is required, you may contact Consultant Support at 855-‐Gifts31 (855-‐443-‐8731) or ordersupportcanada@thirtyonegifts.ca. We can’t guarantee that we will be able to change the address prior to shipment. If we have to change an address during shipment or if an order is returned to us because of an address error, you will be charged additional shipping and handling fees.

Return Policy We want Customers to be perfectly satisfied with their purchases. If a product doesn’t meet a customer’s expectations for any reason, please create a return on your Virtual Office within 90 days of receipt of the order. •

Cancellations: It’s important to understand that Customers have a legal right to cancel their orders for personalized products within ten business days. Please see “Sales Receipts and Customer Cancellation Rights” above for more information about this.

•

Return or Exchange: Personalized items may only be returned due to a manufacturer defect or at our sole discretion. If the item is returned within 90 days of receipt of the product, we’ll pay for shipping to review the return.

•

Refund on Return: We encourage Customers to exchange for the same item being returned. However, if they request a refund, then we’ll deduct the amount of any commissions or overrides you received for those products from any amounts you are to be paid. This deduction will occur for the month in which we process the return (and will continue every month after until the entire amount of the commission or override is recovered). We’ll also deduct any points or credits you earned for incentive programs.

We also offer gift certificates for purchase. Our gift certificates can’t be exchanged for cash, and we’re not responsible for lost or stolen gift certificates. If an item purchased with a gift certificate is returned, the refund will be placed back on the gift certificate.

Governmental Approval or Endorsement There are no government agencies that approve or endorse any direct selling or network marketing companies. You can’t represent or imply that Thirty-‐One or our Career Path have been “approved,” “endorsed” or otherwise sanctioned by any government agency.

Where can I sell products and recruit new Consultants? We want you to party! We are a party plan business and believe that home parties provide the best opportunity to sell products and tell others about the Thirty-‐One opportunity. Home parties are a great way for you and the hostess to connect with guests and form personal relationships that will become the foundation of your Thirty-‐One business. Parties should be simple, effective and fun! The rules around online activities are discussed in the “How can I market and support my Thirty-‐One business?” section of this Consultant Guidebook. © January 2016 Thirty-‐One Gifts Canada Inc.

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Retail Locations We want you to sell products through parties, so we don’t allow Consultants to sell products at any “retail locations” like a retail store or a permanent kiosk in a mall, flea market, boutique or other store. You’re free to conduct parties at restaurants and other on the go locations, such as salons, coffee shops and ball parks. You can leave fliers in retail and non-‐retail locations (like spas, doctors’ or dentists’ offices) with their permission, so long as the purpose is to attract guests for parties – NOT to sell products. Any type of “cash and carry” sale is prohibited unless it is at a Trade Show type of event.

Mail Order Houses and Distribution Centers We don’t allow our Consultants to advertise, promote, sell or recruit through mail order houses or distribution centers. A company that creates letters to send out to customers encouraging them to buy something via the mail is an example of a mail-‐order house.

Trade Shows and Expositions Trade shows, expositions, fairs and similar events provide you with an opportunity to market your Thirty-‐One business. Your goal at these events should be to book parties and find recruits. Your product sales at these events may benefit you in the short-‐term, but your Thirty-‐One business will become stronger through party bookings and new recruits. Please consider how the time you will devote to preparing for this type of event will impact the time you have available to conduct parties. Here are some rules you need to know about trade shows, expositions and similar events: •

You need to register for the event as an independent Thirty-‐One Consultant. The contract will be between you and the organization holding the event. We are not responsible for your participation or results.

•

You can’t sell products at the event for more than the current retail price.

•

You have to staff your booth or exhibit at all times, and you can’t share it with another business.

•

The first Consultant to register for the event has the right to conduct the event. Before you register for the event, you should check with the event promoter to see if another Consultant is registered and/or if more than one Consultant may be represented.

•

Your marketing materials for the event need to comply with our policies or be approved by CAGS in advance.

•

You are responsible for all permits, fees, licenses and insurance that may be required to participate in the event.

We may be able to provide you with a limited number of catalogues for the event. You can download a “Fair/Tradeshow Catalogue Request Form” from ThirtyOneToday.ca (Access Resources > Policies & Forms > Tradeshow Request Form).

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Insurance If you sell products or host a party at a facility, you may be asked to provide proof of general liability insurance. We recommend that you talk with your insurance agent about whether you need coverage for a small and/or home-‐based business. If you use your vehicle for your Thirty-‐One business, we recommend you also discuss auto insurance with your insurance agent.

Telemarketing Consultants are not authorized to make unsolicited telephone calls on Thirty-‐One’s behalf. If during the course of your own business activities, you decides to make unsolicited business telephone calls to persons with whom you have an Existing Business Relationship, you do so on your own account and agree to comply with all applicable rules and laws relating to same, including: (1) Canadian federal and provincial privacy laws; (2) registration with the National Do Not Call List program under the Telecommunications Act rules; (3) maintaining a Do Not Call List so that your business contacts may request not to be called; and (4) disclosing the following information at the beginning of any call: purpose of the call, a toll-‐free telephone number for questions or comments about the call, the nature of the product or business interest being promoted, the identity of the person or organization on whose behalf the call is made, if any, the price of any product being promoted and any material restrictions, terms or conditions applicable to its delivery. For purposes of this section, an Existing Business Relationship exists only in the following instances: (1) the person has purchased a product or service from you within the previous 18 months, (2) the person has contacted you to make an inquiry or application within the previous 6 months, or (3) there is a written contract currently in effect between the person and you or that has expired within the previous 18 months. If you breach this section, we may terminate your Consultant Agreement without notice.

Clearance and Outlet Sales We reserve the right to offer special clearance and outlet sale opportunities from time to time. These sales may be non-‐commissionable, in which case they will not count toward your monthly qualifications or maintenance for personal rank or commissions. All clearance and outlet sales are final and products are purchased “as is.”

How does Thirty-‐One support charities and fundraisers?

Through our charitable program, Thirty-‐One Gives, we are proud supporters of several nonprofit organizations that align with our mission, and we offer our support to those organizations in a number of ways, including product donations, Consultant Giving, Home Office community partnerships and the Thirty-‐One Gives Fund.

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Thirty-‐One Gives Thirty-‐One Gives is dedicated to serving and supporting three key pieces of our heart – girls, women and families. Our mission is to celebrate others for who they are, giving them the support and self-‐esteem needed to lead a purposeful, thriving life. The Thirty-‐One Gives Canada Fund is primarily made up of donations from the Gives Round Up! Program, proceeds from Thirty-‐One Gives collection sales (ex: U R U Collection, exclusive product offerings, Gives Care Ribbons) and individual contributions. Money raised in Canada will be donated to non-‐profit organizations in Canada that serve and support girls, women and families. Visit ThirtyOneToday.ca to learn more about Thirty-‐One Gives (Access Resources > Thirty-‐One Gives).

Thirty-‐One Gives – Corporate Logo

Please keep in mind that you can’t use our Thirty-‐One Gives name or logo without our prior written permission. This includes the use of the Thirty-‐One Gives logo (even if you state that you’re an Independent Consultant). You can contact CAGScanada@thirtyonegifts.ca for permission to use the Thirty-‐One Gives logo. You can also purchase business supplies related to Thirty-‐One Gives for your events, parties and to celebrate your team, hostesses, and customers. For more information about Thirty-‐One Gives Canada, please visit ThirtyOneToday.ca under Access Resources > Thirty-‐One Gives or visit the Thirty-‐One Gives public website at www.thirtyonegives.org.

Thirty-‐One Gives – Independent Consultant Logo

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All Consultants are invited to be a part of the Give in their own communities for the causes close to their hearts. An Independent Consultant version of the Thirty-‐One Gives logo has been created for you to use when you’re hosting fundraisers or sponsoring charitable events in your community. You can find the logo for your level on ThirtyOneToday.ca under Access Resources > Media > Logos.

Fundraisers We don’t provide a discount on bulk product for fundraising purposes. However, we encourage you to find ways to give back to different organizations in your community. If you would like to participate in a fundraiser, you can donate to the organization in many ways. Here are a few suggestions: •

Donate a portion of your commissions

•

Donate Hostess Benefits

•

Sell a Customer Special up to but not exceeding the cost of the regular retail price, then donate the difference*

• Talk with other Consultants and hear their success stories *You’re never allowed to sell our products for more than the current retail price, even if it’s for a good cause. If a product is on special, you may sell the product at its regular retail price and donate the difference between the special and retail price to charity.

Sales to Tax Exempt Organizations

If you’re selling products to a tax-‐exempt organization, please contact Consultant Support at 855-‐Gifts31 (855-‐443-‐8731) or ordersupportcanada@thirtyonegifts.ca.

What are the high level guidelines for marketing? We’ve worked hard to build the value of the Thirty-‐One name for the benefit of your business and ours. It’s very important that you help us protect our image, reputation and brand by following our policies and procedures for marketing and advertising – both print and online.

Identify Yourself as an Independent Thirty-‐One Consultant To avoid any implication that your independent Thirty-‐One business is Thirty-‐One Gifts Canada Inc., you must always: Use your own name and clearly identify yourself as an Independent Thirty-‐One Consultant. This applies to all of your communications (verbal and written), marketing (print and online), telephone listings and greetings, business cards, etc. For example, list your Title with Thirty-‐One after your name (e.g., “Susan Smith, Independent Thirty-‐One Gifts Consultant”). © January 2016 Thirty-‐One Gifts Canada Inc.

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For all Consultant-‐produced marketing (includes all print and recordings) that has been approved by CAGS, include the following disclosure: This marketing material was created by [NAME], an Independent Sales Consultant for Thirty-‐One Gifts Canada Inc., who is solely responsible for its content. Thirty-‐One Gifts Canada Inc. does not endorse and is not responsible for the content of this marketing material. For your bank accounts, credit applications or other business forms, you also can’t use the Thirty-‐One name or trademark. Chequing accounts can simply be designated as “Business Accounts.” If you need to list a business on your chequing account, credit application or other form, use your name and “Thirty-‐ One Gifts Independent Consultant.” This is intended to avoid any implication that your independent Thirty-‐One business is our Home Office.

Protecting the Thirty-‐One Name, Logo, Trademark, Designs, Images & Symbols Because we need to protect the value of the Thirty-‐One name, we won’t allow any unauthorized use of our name, logo and trademark or designs, copyrights, images or symbols. You can’t sell any crafts, jewelry, clothing, business supplies or similar items that include our name, logos, trademarks, designs, images or symbols. Also, you may not alter or change our name, logo, trademarks, designs, images or symbols. For example, you can’t change the background colour or script of the Thirty-‐One logo. To make it easier for you to market your business, we provide elements from the current Catalogue, complete with creative images, photos and suggested fonts and colours. These images may be used on event materials and other pieces to promote your Thirty-‐One business. You can change the size of these images; however, the size ratio, colouring and shading may not be altered. To get started, please visit the “Marketing Materials” section on thirtyonetoday.ca. (Access Resources > How to Market). Consultants often use words, images, phrases, taglines, and/or ideas developed or coined within the Thirty-‐One community for use by all Consultants. Examples of these items include product and fabric names, catalogue images, and phrases like “Celebrate & Connect” and “Celebrate, Encourage, Reward.” • You can’t claim ownership of or the exclusive right to use these items. • You understand and agree that you won’t try to register any these items as a trademark, copyright or domain name and, if you do so anyway, you agree to assign the trademark application or registration, or copyright or domain name registration to us. • You understand that by entering into this Agreement with Thirty-‐One that you are assigning away to us any rights you may have to words, images, phrases, taglines, and/or ideas developed or coined within the Thirty-‐One community, and that we may register any of these items at our sole discretion.

Marketing Materials We produce a variety of sales aids, business tools, and support materials to help you promote your Thirty-‐One business. We carefully design these materials to ensure that they’re fair, accurate and comply with all applicable legal requirements. Although we respect your passion for Thirty-‐One, we strongly recommend that you use the materials we’ve created rather than your own materials. © January 2016 Thirty-‐One Gifts Canada Inc.

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You don’t need approval to use any of the marketing materials supplied on Thirtyonetoday.ca, or to share Thirty-‐One produced graphics on social media. These approved materials can be found on ThirtyOneToday.ca under the Social Media Library, Announcements, What’s Hot, Incentives, etc. If you create your own marketing and advertising materials, you must submit them to CAGScanada@thirtyonegifts.ca for approval. You can’t use your materials unless we give you prior written permission. We’re not responsible for any costs you incur to create your own materials (including losses you may incur if we deny or rescind permission for you to use your materials) nor do we assume any liability for its contents.

Talking to the Media It’s very important that the media receive accurate and consistent information about Thirty-‐One, so our Home Office is the primary contact for the media. If you’re contacted by a member of the media for information about our company, please refer them to CAGS. You may not respond to media inquiries about our company or our products. There are also some important rules to follow if you’re contacted by the media about your Thirty-‐One business. You may not talk to the media about your Thirty-‐One business without our prior written permission. Here are some rules we will follow when considering whether to approve your request to talk to the media:

•

You must submit your request to CAGS at least five business days prior to interview.

•

You must have been a Consultant for at least one year or your Paid at Title must be Senior Consultant or above.

•

You must have conducted at least five parties within the last three consecutive months.

Home Office Leads We invest a lot of time, energy and money in building our reputation and public awareness of the Thirty-‐ One brand. We do this to attract new customers and potential new Consultants, which benefits our business and yours. We receive many requests (which we call “Home Office Leads”) from potential customers and recruits for more information about Thirty-‐One, our products and the opportunity to become Consultants. We have a program to refer Home Office Leads to our existing Consultants. We believe the best way to build your Thirty-‐One business is to conduct parties and use your own “social network.” You shouldn’t expect to receive Home Office Leads and they’re not a way to sufficiently build your business. For detailed information about our program and its eligibility requirements, please refer to “Home Office Lead” summary located on ThirtyOneToday.ca (Access Resources > Business Tools > Home Office Leads). Because there are so many guidelines for the proper acquisition and security of personal data, you should not create your own forms or methods of data capture in order to acquire leads. Thirty-‐One Gifts Canada Inc. is not responsible for the contents and/or security of any data acquired by Consultants in this manner. All data on potential recruits and customers should instead be entered and stored through your Virtual Office. © January 2016 Thirty-‐One Gifts Canada Inc.

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As a Consultant, please do not access the Lead Pool to find another Consultant or to test the system.

How can I market and support my Thirty-‐One business? Domain Names, Email Addresses and Online Aliases/User Names You are not allowed to use or register 31, Thirty-‐One Gifts or any of Thirty-‐One Gifts trademarks, product names, or any derivatives, including the number 31, for any Internet domain name (including blogs and team websites), e-‐mail address, or online aliases/user names (including social media sites – such as Facebook, Twitter, Pinterest, etc.)*. Additionally, you cannot use or register domain names, e-‐ mail addresses, and/or online aliases/user names that could cause confusion, or be misleading or deceptive, in that they cause individuals to believe or assume the communication is from, or is the property of Thirty-‐One Gifts LLC. Examples of the improper use include but are not limited to: • Thirtyonegiftsgal@gmail.ca or Thirty-‐One Gifts showing up as the sender of an e-‐mail • www.31giftsisgreat.ca or www.31flashsale.ca • www.facebook.ca/thirtyonegiftsfan • http://thirty-‐oneinalberta.blogspot.ca or http://31giftsbySaly.blogspot.ca *The only exception to this section is Consultants who enrolled prior to July 2012 and have remained active are permitted to keep their original 31 domain names, email addresses and online aliases/user name.

Advertisements/Paid Media There are four types of advertisements/paid media that are permitted for your Thirty-‐One business. Each one of these advertising methods is done at your own cost:

• • • •

Print advertising Sponsored links or pay-‐per-‐click ads Facebook Advertising (please refer to the Social Media section for details) Promoted Tweets (please refer to the Social Media section for details)

We strongly believe in a culture that focuses on relationships and community. Our advertisement policies and procedures help us ensure that the core of our business, the party plan model, is healthy, by positioning advertising as a support and supplement to your core business activities. All advertisements must be accurate, professional, not misleading and comply with our policies and procedures, including those for using the Thirty-‐One name, logo and trademark. For Fundraiser advertisements, you must identify the organization to which any proceeds are being donated.

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Print Advertising You may want to place print advertisements for your Thirty-‐One business and you may do so in either newspapers or magazines. We are a little more stringent in our print advertising because of the life cycle in which print advertisement can be saved and viewed. Please abide by the following guidelines: •

Do not place print advertisements unless we give you prior written permission.

•

Please send your request (including the ad copy, graphics and artwork) to CAGScanada@thirtyonegifts.ca at least five business days prior to the submission deadline.

•

Once the advertisement runs, please scan and send the final advertisement to CAGScanada@thirtyonegifts.ca (subject line: FINAL ADVERTISEMENT).

Sponsored Links/Pay-‐Per-‐Click Ads Sponsored links or pay-‐per-‐click ads are acceptable. The destination URL must be to your Replicated Website (www.mythirtyone.ca). The display URL must also be to your Replicated Website, and must not portray any URL that could lead the user to assume they are being led to a Thirty-‐One corporate website, or be inappropriate or misleading in any way. If you choose to promote your business through paid advertising online you must adhere to the following: •

•

In the header/subject line of your ad, the first two words need to be “Shop Name” (ex. Shop Jenny). If both words are not included, it may result in the Consultant’s site being temporarily disabled until we have a verbal phone call with the Consultant. In addition, we ask that you add a parameter “?source=ad” to the URL associated with your ad. If the ad is for an event, the parameter should include “&source=ad”. See examples below: o o

Home page example: www.mythirtyone.ca/jenny/?source=ad Event page example: https://www.mythirtyone.ca/shop/eventhome.aspx?eventId=E5161355&from=MYEVEN TS&source=ad

Search Engines/Metatags/Keywords We have a no-‐tolerance policy regarding the use of our trademarks or names in metatags and/or hidden text. Specifically, the use of our trademarks or names in metatag keywords is trademark infringement, and the use of trademarks or names in page text, metatags, and/or hidden text for purposes of gaining higher rankings from search engines is unfair competition. You may not, without our express written consent, do any of the following: • link to any web page on any of our Online Channels for the purpose of appearing to be affiliated with or endorsed by us or to gain higher rankings in search engines; • use any metatags or any other "hidden text" utilizing our name or trademarks; or © January 2016 Thirty-‐One Gifts Canada Inc.

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frame, inline link or utilize other techniques to associate or juxtapose any of our trademarks, logos, or other information with advertisements and/or other information not originating from our Online Channels. We retain the right at our sole discretion to deny access to any one to our Online Channels at any time and for any or no reason, including, but not limited to, for violation. You are also advised that we will aggressively enforce our intellectual property rights to the fullest extent of the law, including the seeking of civil remedies and criminal prosecution. •

Banner Advertising You may place banner advertisements on a website provided you use our approved logos. All banner advertisements must link to your Replicated Website (www.mythirtyone.ca). You may not use blind ads or web pages that make product or income claims that are ultimately associated with us, our products or the Thirty-‐One opportunity. You may advertise your business through web banner ads provided the ads have been reviewed and approved by CAGS.

Replicated Website To help you start your Thirty-‐One business, you’ll have the option to purchase a monthly subscription for a replicated website that resides on the thirtyonegifts.ca domain (e.g. www.mythirtyone.ca/[Consultant ID] and the monthly customer email service. A monthly subscription fee will be charged to the credit card you have on file with us for the Replicated Website and Monthly Customer Email. The replicated website contains a Virtual Office and other business building and management tools to help you develop and operate your Thirty-‐One Gifts Canada business. The monthly customer email service are customer emails that Thirty-‐One Gifts sends on your behalf to your customers to promote your business. You may cancel or make changes to this monthly subscription at any time through your Virtual Office on the Subscription tab. •

•

Here are some rules you should know about your Replicated Website: •

You may not alter its look (placement, sizing, etc.), functionality or branding.

•

You may not use it to promote, market or sell non-‐Thirty-‐One Gifts products, events or income opportunities.

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•

You can personalize the “About Me” page and welcome message. You’re solely responsible and liable for the content you add to your Replicated Website.

•

We can receive analytics and information about the usage of your Replicated Website.

External Website You may create an external website to promote your Thirty-‐One Gifts business. It is your responsibility to keep information on your external website updated and current. You may not represent another business in conjunction with your Thirty-‐One Gifts business on your website. Note: You cannot have any type of ordering/selling and/or recruiting platform except a link to your Thirty-‐One Replicated Website. You may use your external website for the purpose of communicating with your team. Your team website needs to be closed and password protected (so it can’t be viewed by the public) and you will need to revoke the access of any Consultants that leaves your team. You can’t use the Thirty-‐One Gifts name or the number 31 (or any variations of them), for your external/team website, replicated website or any other website! For example, website names like these are NOT allowed:

• • • • •

http://thirtyoneisfun.blogspot.ca http://31giftsbySaly.blogspot.ca http://thirty-‐oneinontario.blogspot.ca www.thirtyoneconsultantsrock.ca www.mythirtyone.ca/31totes

Online Sales You can’t list or sell current Thirty-‐One products through any website other than your Replicated Website (www.mythirtyone.ca). Selling current Thirty-‐One products on online auction sites including but not limited to kijiji, Ebay, Etsy, Craig’s List, and Amazon is strictly prohibited. Online selling of current product on auction sites is grounds for immediate disciplinary action, and could result in termination of your Consultant Agreement. All of your activities related to sales of our products and recruiting of Consultants must be directed through your Replicated Website (www.mythirtyone.ca). If you are found to be in violation, we have the right to terminate your Consultant Agreement immediately. We do allow you to promote the Thirty-‐One Gifts opportunity and products through your social media channels and groups so long as you are directing people back to your Replicated Website. If you are referring to any type of income, you must include the current Statement of Typical Participant’s Earnings (SOTPE) in your post. Please read through the “Social Media” section for more information. If you still have questions, please call CAGS at 614-‐414-‐4531.

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Unsolicited Email Spamming / Mass Emailing You’re not allowed to transmit mass, unsolicited emails to promote us, our products or the Thirty-‐One opportunity to people who you don’t know, or who haven’t given you express consent to contact them. You are permitted to communicate with individuals who are “opt in” subscribers (people who have initiated a request to be included in bulk e-‐mailing, newsletter or other standardized communications from you and you have proof of the request). All Consultants are required to comply with applicable laws and regulations when sending e-‐mails. Any email you send that promotes us, our products, or the Thirty-‐One opportunity must: •

Be sent through your Virtual Office (do not send Thirty-‐One business emails from your personal email address). • Have a functioning return email address to the sender (this address must be valid for a minimum of 60 days after the message has been sent). • Contain a notice that advises the recipient that they may reply to the email, via the functioning return email address, to request that future email solicitations or correspondence not be sent to them (a functioning “opt-‐out” notice). Please note that all emails sent through your Virtual Office and all marketing emails automatically append this opt-‐out link for you. • Include the name of the person sending the message, your physical mailing address and email address. • Clearly and conspicuously disclose that the message is an advertisement or solicitation. • Not contain deceptive subject lines and/or false header information. • You must honour all opt-‐out requests, whether received by email or regular mail no later than 10 days after receiving the request! • If you strictly send email through your Virtual Office, then you have less to manage. Thirty-‐One appends an opt-‐out link option on every email sent through its Virtual Office. Thirty-‐One will not send any email to someone who has opted out. You can see a Customer’s email status by looking up their information in your Virtual Office. • If you send a Thirty-‐One related email from your personal email address and you receive an opt-‐ out request from the recipient, you need to forward the opt-‐out request to us. Before sending any email through your personal email address, it is extremely important that you double check the Customer’s email status. • For emails related to the Thirty-‐One Gifts “opportunity”, Consultants must also include a reference to the Statement of Typical Participant’s Earnings. For example: For more information about what you can expect to earn as a Thirty-‐One Consultant, please read our Statement of Typical Participant’s Earnings posted on the “Become a Consultant” page at thirtyonegifts.ca. Once someone has opted-‐out of receiving Thirty-‐One related emails, you may no longer send them emails (even from your personal email address) to invite them to Thirty-‐One parties or to sell them Thirty-‐One products. However, you may send her emails about orders she placed or in response to her inquiry (including responding to her request to participate in or host a Thirty-‐One party).

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To help you grow your business, Thirty-‐One may periodically send promotional emails on your behalf. By entering into the Consultant Agreement, you agree that we may send these emails to customers. For Consultants who pay for the Replicated Website and email (Monthly Customer Email), marketing has given you the opportunity to update a message to Customers. This message must be in compliance with our policy and procedures and business practices. You are solely responsible and liable for the content you add to this email message. If, as a result of the promotional emails that we send on behalf of Consultants, you receive a specific opt-‐out request, you must forward the opt-‐out request to us. You must honour opt-‐out requests generated as a result of emails we send once we provide the opt-‐out names and email addresses to you through your Virtual office on mythirtyone.ca.

Unsolicited Faxes You may not use or transmit unsolicited faxes in connection with your Thirty-‐One business. The term “unsolicited faxes” means the facsimile transmission of any material advertising or promoting our products or the Thirty-‐One opportunity. Although there are some narrow exceptions to this rule, the legal regulations are strict and carry significant penalties.

Spam Linking Spam linking is defined as multiple consecutive submissions of the same or similar content into blogs, wikis, guest books, social media sites, websites or other publically accessible online discussion boards or forums and is not allowed. This includes blog spamming, blog comment spanning, and/or “spamdexing.” Any comments you make about you and your Thirty-‐One business on blogs, forums, guest books, etc., must be unique, informative, and relevant.

Links

When directing readers to your Replicated Website (www.mythirtyone.ca), it must be obvious from the link and the surrounding context that the link is to the site of a Consultant. We do not allow any attempts to mislead web traffic into believing they are going to a Thirty-‐One corporate website, when in fact they land at a Consultant site (replicated). The determination as to what is misleading will be at our sole discretion. The use of “hotlinks” is strictly prohibited.

What is social media? Social media is a wonderful way to build community and strengthen relationships when used appropriately. Social media includes Internet forums, blogs, wikis, social networks (Facebook, Pinterest, Instagram, Twitter, YouTube, Vine, Periscope, etc.), podcasts and any other form of user-‐generated content shared on the Internet. Thirty-‐One is currently active on the following social media channels: Facebook, Pinterest, Instagram, Twitter, Google+, and YouTube. These policies and procedures apply to our current channels and to all new and emerging sites in the social media space. Please read through this “Social Media” section for more information. If you still have questions, please call CAGS at 614-‐ 414-‐4531. © January 2016 Thirty-‐One Gifts Canada Inc.

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Our Goal for Social Media Our goal for social media is to provide our Customers and Consultants with a simple, easy, and fun space to interact with each other. In doing so, we strive to maintain three major pillars for successful relationship building in our party plan business: Protect our brand and yours o We want to ensure that the Thirty-‐One brand, as well as your Thirty-‐One business is protected, by helping you avoid interactions that may be perceived as negative • Build upon the core of our PARTY plan business o We strongly believe in a culture that focuses on relationships and community. Our social media policies and procedures help us ensure that the core of our business, the party plan model, is healthy, by positioning social media as a support and supplement to your core business activities. • Create and maintain a fair and level playing field for Consultants o We want to ensure that social media interactions can be replicated and are fair for all Consultants. The following policies, procedures and guidelines have been created to ensure that we can maintain our strong pillars for successful community and relationship building in the social media space. We know there will be new social media platforms and new features emerging all the time and we will review these to determine if and how they fit into our policies on social media. Before you begin to engage on social media, remember, post with care! Items you post online may be indexed by search engines, so they can and will remain public and be associated with you even if the original post is deleted. •

Never participate in social media when the topic being discussed may be considered a sensitive situation. For example, complaining about backordered product is a customer service topic and is not appropriate content for Consultants to post on any official Thirty-‐One social media channel. If you aren’t sure if a topic is considered a sensitive situation, it’s best not to post anything at all. Instead, direct questions or concerns to your Upline, log onto ThirtyOneToday.ca, or call Consultant Support (614-‐414-‐ GIFT). Here are some of the primary social media types we will discuss in more detail below: •

• • • • •

Facebook o www.facebook.com/ThirtyOneGiftsCanada o www.facebook.com/ThirtyOneConference Twitter o Twitter.com/thirtyone Pinterest o www.pinterest.com/thirtyonegifts Instagram o www.instagram.com/thirtyone Google + o Plus.google.com/thirtyone YouTube/Vimeo o Youtube.com/user/thirtyonegifts

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• •

Periscope Blogs

Facebook Currently there a number of ways to use Facebook to support your Thirty-‐One business. Here are some of the primary ways: •

•

Thirty-‐One’s Public Facebook Page (www.facebook.com/ThirtyOneGiftsCanada) is a forum for both Customers and Consultants to interact and share the love for Thirty-‐One. This page is a place for connection and idea sharing and is not a forum for Consultants to sell or recruit. In order to like, comment or share content from the Thirty-‐One public Facebook page, it is necessary for you to have a personal Facebook profile. Thirty-‐One’s Public Conference Facebook Page (www.facebook.com/thirtyoneconference) is a place for Consultants to connect with one another and for the Home Office to share excitement and news about Conference. It is monitored from the opening of registration through the month following Conference. The primary difference between this page and the main Thirty-‐One page is that content posted here is directed to you or to your potential recruits. Please know that this is still a public forum. In order to like, comment or share content from the Thirty-‐One public Conference Facebook page, it is necessary for you to have a personal Facebook profile. Your Personal Facebook Profile is for non-‐commercial use, meaning that you may not use it to directly sell products, recruit or post your mythirtyone.ca site. This profile should be all about you. A personal Facebook profile is required in order to create and manage a public figure (business person) page on Facebook. Current Facebook policies dictate that each Facebook user can only have one personal Facebook profile. Public Figure Page/Business Person Pages look similar to personal profiles, but offer unique tools for your business. You must have a personal profile in order to create and manage a business page. Unlike personal profiles, the information that you post to your business page is visible to anyone who “likes” the page. A public figure (business person) page is necessary for all forms of Facebook advertising objectives with the exception of “Clicks to Website.” Facebook Groups are meant for more intimate and targeted conversations. In order to participate in Facebook Groups, you must have a personal Facebook profile. You cannot interact in a Facebook group using a Public Figure (business person) page. o Closed Groups are meant for more intimate and targeted conversations (with teams, Uplines, Hostesses, Customers and peers). Using a closed group allows you to share specific and more detailed information about a particular topic that is only suited for that particular audience. o Thirty-‐One’s Home Office Groups are meant to be a place for connections, conversations and idea sharing. They are meant to be a resource that provides instant access to your peers and their extensive knowledge base.

Additional Facebook Guidelines Here are some additional guidelines and information to follow when using Facebook (personally and for your Thirty-‐One business):

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•

We expect you to abide by Facebook's terms and conditions when it comes to your Personal Facebook Profile, which can be found here: https://facebook.com/policies. Specifically, Facebook’s community standards dictate what is and is not acceptable for your Personal Facebook Profile: https://www.facebook.com/communitystandards. Do not use Facebook to support your Thirty-‐One business until you review Facebook’s terms and conditions (https://facebook.com/policies) in order to: protect our brand and your Thirty-‐One business, ensure a fair and level playing field for all Consultants, and build upon the core of our party business. In January 2015, Facebook tightened its regulations on commercial use of its platform. This means that when users post anything other than original content (photos, videos, etc.) to personal profiles, closed groups or business person (public figure) pages, they are putting themselves and their Facebook accounts at risk for suspension or termination (“Facebook Jail”). To learn more about what you can do to prevent suspension or termination of your Personal Facebook account, visit Facebook’s Security & Warnings Section here: https://www.facebook.com/help/disabled/warning.

Thirty-‐One’s Public Facebook Page The purpose of the Thirty-‐One Facebook page (www.facebook.com/thirtyonegiftscanada) is to provide a place for Customers and Consultants to connect, interact and share the love for Thirty-‐One and Thirty-‐ One products. Content (posts, photos, videos, etc.) posted on the Thirty-‐One page is created and posted with both Consultants and Customers in mind and is meant for sharing and interaction. So that our content remains shareable, please do not tag yourselves or others in the posts unless the post specifically asks you to do so. You may share Thirty-‐One’s Facebook content in the following ways: • • • • • •

Post to your timeline Post to a friend's timeline Send a private message to a friend Share on a page you manage, like a Public Figure/Business Person Page Share in your closed Facebook group Download and send via email, text, etc.

Because the majority of the audience on the Thirty-‐One Facebook page is Customers, this page is not the place for selling, recruiting or exchanging Consultant-‐specific information. This type of behaviour can damage the reputation of Thirty-‐One and of Thirty-‐One Independent Consultants. All Consultant Support issues should be handled by reaching out to your Upline, or by contacting our team at 855-‐Gifts31 (855-‐443-‐8731) or emailing ordersupportcanada@thirtyonegifts.ca. If you see inquiries about Thirty-‐One parties, products or the opportunity posted on the page, your response has to direct that individual to a Thirty-‐One Gifts website or phone number and cannot include your mythirtyone.ca website or contact information. •

DO NOT send unsolicited private messages or friend requests to individuals posting on the Thirty-‐One (or any) Facebook page as this is a direct violation of Facebook's policies.

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•

If you see a fellow Consultant on the page who is in violation of the above guidelines, do not attempt to handle it yourself by engaging her in a public conversation. Allow the social media team to hide the offending post(s) and escalate if necessary.

Thirty-‐One’s Public Conference Facebook Page The Thirty-‐One Conference Facebook page (www.facebook.com/ThirtyOneConference) was created for Consultants to connect with one another and for the Home Office to share excitement and news about Conference and is monitored from the opening of registration through the month following Conference. The primary difference between this page and the main Thirty-‐One page (www.facebook.com/thirtyone) is that content posted here is directed to you or to your potential recruits. Please know that this is still a public forum. This page is not a place for selling, recruiting or exchanging business information. All Consultant Support issues should be handled by reaching out to your Upline, or by contacting our team at 855-‐Gifts31 (855-‐ 443-‐8731) or ordersupportcanada@thirtyonegifts.ca or referencing information posted to ThirtyOneToday.ca. If you see inquiries about Thirty-‐One parties, products or the opportunity posted on the page, your response has to direct that individual to a Thirty-‐One Gifts website or phone number and cannot include your mythirtyone.ca website or contact information. •

DO NOT send unsolicited private messages or friend requests to individuals posting on the Thirty-‐One (or any) Facebook page as this also violates Facebook's policies.

Your Personal Facebook Profile Thirty-‐One should not dominate the content of your Facebook page. Your personal profile should reflect YOU and your Thirty-‐One connection. If you choose to talk about Thirty-‐One, do so in a genuine conversational and meaningful way that describes your experience and isn't focused on booking, selling and recruiting. It is important to understand the distinction between having a conversation and selling on Facebook, especially since Facebook’s profiles are for non-‐commercial use. Rather than posting a product or sentence with a link to your mythirtyone.ca website, make sure that you share content that invites questions and starts conversations. For example, snap and upload a photo of one of your products in-‐ use or share a photo by posting it on your Facebook timeline. In the post, make sure you say why you are sharing that particular image (make a comment, ask a question, etc.). Then, if one of your friends inquires about the product, a party or the opportunity, you may answer that comment by providing additional details about your business, including your mythirtyone.ca replicated website. Here are some examples and suggestions on how to include Thirty-‐One in your personal Facebook posts, if you choose, without violating Facebook's policies and procedures:

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• • •

•

Cover Photo -‐ Include a photo of your team, photos from events (Leadership Trips, Sales Field Events, Product Premieres, Retreats, Conference, etc.), home office provided photos/graphics. Profile Photo -‐Your profile photo should be a photo of YOU, because often that may be someone's first impression of you and Thirty-‐One is all about establishing relationships. About Section -‐ Include in your "Work and Education" section that you are an Independent Thirty-‐One Consultant, Sr. Consultant, etc. You may list your website and contact information here. Timeline/Status updates o Your why, your photos from Thirty-‐One events, photos of your products in action, photos of Thirty-‐One friends, shared content from the Thirty-‐One Facebook page that is meaningful to YOU or to your friends. o If you post a photo or comment and someone ask how to join or purchase a product, you may add your replicated website link when you respond.

Public Figure Page/Business Person Page Facebook pages are great for when your network begins to grow significantly beyond your personal friends, family and acquaintances. For more information, or to create a Public Figure/Business Person Facebook page, visit Facebook’s pages section: www.facebook.com/pages. Cindy’s Public Figure Page is an example of how to share both professional and personal updates. To keep up-‐to-‐date, “like” her page at facebook.com/CindyMMonroe. Here are some examples and suggestions on how to incorporate Thirty-‐One in your Public Figure Page/Business Person Page: • Cover Photo -‐ Include a Photo of your team, photos from events (Leadership Trips, Sales Field Events, Product Premieres, Retreats, Conference, etc.), home office provided photos/graphics. • Call-‐to-‐action button -‐ This button is available only on public figure/business person pages. You may add this to your page, provided that it links directly to your mythirtyone.ca site. • Profile Photo -‐ Your profile photo should be a professional headshot, if possible, and one that reflects you as a businesswoman. Remember, this may be someone's first impression of you. • About Section (appears on the main page) for example: o Add a short description that will appear on the page: § Independent Executive Director with Thirty-‐One Gifts Canada § www.mythirtyone.ca/ConnieSultant • About Section (expanded when you click through) o Mission = why o Description = About you o General Information = Fun facts, favourite quotes, favourite products, team name, team motto, team website, etc. • Basic Info o Awards & achievements • Contact Info o Your business information (phone, email, replicated website, etc.) • Website o social networks o mythirtyone.ca site © January 2016 Thirty-‐One Gifts Canada Inc.

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Blog Timeline/Status Updates o To maximize engagement, you should post and share a variety of content. This can be content that you create (posts, photos, videos, recipes, etc.) or posts you share directly from the Thirty-‐One Facebook page. o Please note that not every post has to be related to Thirty-‐One. You can share recipes, organization ideas, kid's activities, favourite books, websites, leadership tips, jokes, motivational quotes, photos, and fun in accordance with our brand standards. o It is important to be consistent with your posts. We recommend posting no more than once/day or no less than 3/week in order to maximize your engagement with your followers. o

•

Facebook Groups Facebook groups are meant for more intimate and targeted conversations (with teams, Uplines, Hostesses, Customers and peers). Groups allow you to share specific and more detailed information about a particular topic that is only suited for that particular audience.

Closed Groups If you want to communicate with your team and/or Upline, please do so in a closed Facebook group. Because the groups are private and by invitation-‐only, they are the place to discuss information that would be private or business specific. •

Please do not add people to your group unless they have specifically requested to join.

You may also use Facebook groups to update and inform Hostesses and Customers about your Thirty-‐ One business. Please be sure to note that the group is not sponsored by Thirty-‐One Gifts and to provide a link to your official mythirtyone.ca site for members to learn more about the opportunity or about ordering. • • •

If you use Facebook Groups, please keep them closed to control who is seeing your messages and so you understand and know your audience. When participating in conversations in closed groups, remember you are a reflection of your Thirty-‐One business and our Thirty-‐One brand. You may sell retired Thirty-‐One products in closed Facebook groups, but remember, you may be damaging the reputation of Thirty-‐One and your Thirty-‐One business by offering steep discounts and conditioning customers to wait for sales in order to purchase.

Thirty-‐One’s Home Office Groups These groups are meant to be a: • •

place for connections, conversations and idea sharing. resource that provides instant access to your peers and their extensive knowledge base.

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Home Office has visibility to these groups, but please contact ordersupportcanada@thirtyonegifts.ca 855-‐Gifts31 (855-‐443-‐8731) with any major concerns or issues so that they can be documented by our Consultant Support team and escalated to the proper department. •

Each group has specific guidelines as to its purpose and what content is appropriate. Please reference those guidelines for your specific group.

Confidentiality Reminder for Social Media! Any information you may receive prior to disclosure to other Consultants should not be shared on any social media platform. This includes, but is not limited to, sneak peeks, amenities, special promotions or information shared on Director Calls, Webinars, Leadership Trips, Conferences and special events. Violators may be subject to disciplinary action.

Creating and Posting Events on Facebook

When using Facebook events as an invitation to a Home or Catalogue party hosted by someone else (not you as the Consultant), you may create the event on behalf of the Hostess and add her as the event owner, so that all she has to do is invite her Facebook friends. If the Hostess chooses to create her own event, she may choose to add you, as the Consultant, to the event to make it easier for you to monitor the anticipated attendance and to answer any questions or concerns related to Thirty-‐One or to the party experience. If you, as the Consultant, are hosting your own event, such as an open house, vendor show or fundraiser, you may create this event on your personal Facebook page and invite friends. You may also choose to promote these events separately in your closed Facebook groups for customers and/or Hostesses or on your public figure page. If you are participating in an event that has already been created on Facebook you may extend that invitation to those in your social network. Please remember that Facebook does not allow selling on personal profile pages. To remain compliant with Facebook terms and conditions, it is important to be mindful of how you speak about these types of events. You may update your Facebook status to reflect your participation, which may prompt a friend or family member to ask for more information or for access to your closed group. Here is an approved example: “I'm so excited that I have been asked to join the charity's annual fundraiser on 1-‐4 June! Please send me a message if you'd like more details.” For more details on how to create and set up a Facebook event, visit https://www.facebook.com/help/events.

Facebook Advertising

Facebook advertisements are paid messages that are written in your voice and have an advertising objective. Ads appear in specific places on Facebook, called placements, and can appear in desktop News Feed, mobile News Feed and the right column of Facebook. The objectives that will make the most sense for you and your Thirty-‐One business are: Clicks to © January 2016 Thirty-‐One Gifts Canada Inc.

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Website (to your mythirtyone.ca replicated website), Page Post Engagement (your public figure/business person page), Page Likes (your public figure/business person page), Local Awareness (your public figure/business person page), Event Responses (your public figure/business person page) and Video Views (your public figure/business person page). Based on the objective that you choose, Facebook will suggest an ad format that will help you best achieve that objective. Regardless of which option you choose, you must set your ad to target only those within your home country. Facebook gives you the option to further refine your target area, which we recommend in order to maximize both your reach (impact) and your budget. The budget and duration for your ad is at your discretion. To ensure you are choosing the right type of ad and setting up the copy and graphics correctly, it is important to read and understand Facebook’s Ad Guide, which can be found here: https://www.facebook.com/business Here is a brief overview of each objective: Clicks to Website: Allows you to send people directly to your mythirtyone.ca replicated website from Facebook. These ads can be targeted to any audience you choose, provided they are within your home country. Note: This is the only form of Facebook advertising that does not require you to have a Public Figure/business person page. If you choose this method, make sure that you choose “Turn Off News Feed Ads” when choosing the text and link you want to use. When you choose this option, your ad will appear on the right hand column only and will not be featured in the Desktop or Mobile News feed. If you do have a public figure/business person page, you may choose to link to it when setting up your ad. Page Post Engagement (Photo/Video/Text): Allows you to reach more people and give more people the opportunity to engage with your post. Engagement can include likes on your post, comments, shares and video views. These ads can be targeted to any audience you choose, provided they are within your home country. Note: This objective is the same as “Boosting” a post. You may boost posts directly from your public figure (business person) page by clicking the “Boost” button on the individual post. Once you click “Boost,” Facebook will provide additional options for you to identify your audience, target your message and set your budget. Page Likes: Allow you to promote your page and increase its audience. Local Awareness: These ads help reach people who live near you and provide you the opportunity to target your message to a designated radius around a designated address. Event Responses: These ads allow you to promote a particular event (vendor fair, fundraiser, open house) to a specific audience in order to get more responses. Video Views: This is similar to page post engagement and allows you to choose a video that you have previously uploaded on your public figure/business person page or upload a new video to feature and promote. Thirty-‐One will not provide any technical support when it comes to setting up your Facebook advertising campaigns. It is your responsibility to familiarize yourself with the terms and conditions as © January 2016 Thirty-‐One Gifts Canada Inc.

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well as the set-‐up and maintenance of your Facebook ad(s). Note: Thirty-‐One is also not responsible for the content of your Facebook ad.

Twitter The purpose of the Thirty-‐One Twitter account (@thirtyone) is to provide a place for both Customers and Consultants to connect, interact and share the love for Thirty-‐One and Thirty-‐One products. Before you begin using Twitter for yourself or for your Thirty-‐One business, we suggest becoming familiar with Twitter's guidelines and best practices here: http://support.twitter.com/groups/50-‐welcome-‐to-‐twitter. Your Twitter profile and tweets should represent you and shouldn't be used exclusively for selling Thirty-‐ One products or recruiting new team members. Here are some examples on how to incorporate Thirty-‐One in your Twitter account (if you choose): • • •

Header -‐ Include a photo of your team, photos from events (Leadership Trips, Sales Field Events, Product Premieres, Retreats, Conference, etc.), home office provided photos/graphics Photo -‐ This photo is your identity on Twitter and appears with your Tweets. The photo should be a photo of YOU, because often that may be someone's first impression of you. Bio -‐ Use this space to introduce yourself in 160 characters or less in a brand appropriate way.

Twitter Advertising Promoted Tweets are paid Tweets that are written in your voice and have an advertising objective which will help you reach a wider group of users or to spark engagement with your existing followers. Promoted Tweets are clearly labeled as Promoted when you pay for their placement on Twitter. In every other respect, Promoted Tweets act just like regular Tweets and can be retweeted, replied to, favourite and more. The objectives that will make the most sense for you and your Thirty-‐One business are: Tweet engagements (drives retweets, favourites and replies), Website clicks (to your mythirtyone.ca replicated website) or conversions and Followers (to grow your community). Based on the objective that you choose, Twitter will provide additional details to show you what your audience will see, where they will see it and how the campaign will be charged. Regardless of which option you choose, you must set your ad to target only those within your home country. Twitter gives you the option to further refine your target area, which we recommend in order to maximize both your reach (impact) and your budget. The budget and duration for your promoted tweet is at your discretion. To ensure you are choosing the right type of promoted tweet and setting it up correctly, it is important to read and understand Twitter’s advertising policies, which can be found here: https://support.twitter.com/groups/58-‐advertising#topic_242 Here is a brief overview of each objective: Tweet engagements: Helps you reach more people and drive conversation by encouraging people to © January 2016 Thirty-‐One Gifts Canada Inc.

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retweet, favourite or reply to your promoted tweet. These tweets should contain images to further engage your audience and to encourage action. Users that you target will see your ads in their timelines and in search results. Website clicks or conversions: Sends people to your mythirtyone.ca replicated website to purchase, sign up, etc. Clicks on the image and button will go directly to your mythirytone.ca replicated website. Users will see your ads in their timelines and in search results. Note: If you are using Twitter to help generate leads, this is the objective that you must choose as it directs traffic to your mythiryone.ca replicated website. Followers: Choosing this objective will help you grow your community on Twitter. If you choose this objective, make sure to tell users why they should follow you. Targeted users will see ads in their timelines and “Who to follow” suggestions. Thirty-‐One will not provide any technical support when it comes to setting up your Twitter advertising campaigns. It is your responsibility to familiarize yourself with the terms and conditions as well as the set-‐up and maintenance of your promoted tweet(s). Note: Thirty-‐One is not responsible for the content of your promoted Tweet.

Pinterest Pinterest (www.pinterest.com/thirtyonegifts) is a tool for collecting and organizing the things you love. Before you begin using Pinterest for yourself or for your business, please review the "Basics" section to get started: http://about.pinterest.com/basics. Please do not use Pinterest to support your business until you review these guidelines in order to: • • •

Protect your Thirty-‐One business and our brand Build upon the core of our PARTY plan business Maintain a fair and level playing field for you and all of our Consultants

Thirty-‐One’s Public Pinterest Account (www.pinterest.com/thirtyonegifts) The purpose of the Thirty-‐One Pinterest account is to provide ideas and to share inspiration. We post both original and repined content that helps to tell and illustrate our brand story. • •

You are permitted to repin content to your own boards. You are permitted to like/comment on the pins posted to the Thirty-‐One account, but do not post your mythirtyone.ca site on any pin posted under the Thirty-‐One’s public Pinterest account.

Personal Pinterest Accounts Your Pinterest profile should be a reflection of YOU and not an exclusive vehicle for selling or advertising your Thirty-‐One business. You should pin a variety of content that includes Thirty-‐One as well as your other interests and passions. •

Use your First and Last name when using Pinterest. Do not have Thirty-‐One, 31, etc. included in your first or last name.

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• • • • •

Your picture should be a photo of YOU, because often that may be someone’s first impression. Your username cannot include Thirty-‐One at all, in any format. About you -‐ If you are using Pinterest to showcase Thirty-‐One products, you must identify yourself as a Thirty-‐One Independent Consultant. Website -‐ You can list your mythirtyone.ca site here. As a general rule -‐ Do not link your Pinterest activity to your Twitter or Facebook profile and timelines. Any pins or repins will fill your feed on these other sites.

Thirty-‐One’s Public Instagram Account The official Thirty-‐One Instagram account is www.instagram.com/thirtyone. Before you begin to use Instagram, we suggest that you review Instagram's Terms and Conditions here: http://instagram.com/about/legal/terms/. We encourage you to comment and interact with the content that the Home Office posts, but do not use our content as a forum for selling or recruiting.

Your Personal Instagram Accounts Do not include Thirty-‐One, 31, etc. in your Instagram username as your account should be a reflection of you and not exclusively Thirty-‐One. If you choose to post content, post a variety of content and make it as original as possible. Similar to Facebook, do not use Instagram to sell or recruit. You can use it to showcase your favourite products, as they are a part of your everyday life. Profile photo -‐ This photo is your identity on Instagram and appears with your posts. The photo should be a photo of YOU, because often that may be someone's first impression. Bio -‐ Tell a little about yourself and identify yourself as a Thirty-‐One Independent Consultant if you will be mentioning Thirty-‐One or Thirty-‐One products in your Instagram posts. Website -‐ You can list your mythirtyone.ca site here.

Thirty-‐One’s Public Google+ Page The purpose of Thirty-‐One’s Google+ page (http://plus.google.com/thirtyone) is to provide a place for both Customers and Consultants to connect, interact and share the love for Thirty-‐One and Thirty-‐One products. We expect you to abide by the Google+ terms and conditions when it comes to your Google+ account. To review the Google+ Policies: https://www.google.com/intl/en-‐US/+/policy/content.html. •

• •

The page is not a place for selling, recruiting or exchanging Consultant-‐specific information. The majority of the people on the Thirty-‐One Google+ page are Customers and these types of interactions can damage their perception of Thirty-‐One and Thirty-‐One Independent Consultants. All Consultant Support issues should be handled by reaching out to your Upline or by contacting our team at 855-‐Gifts31 (855-‐443-‐8731) or ordersupportcanada@thirtyonegifts.ca If you see inquiries about Thirty-‐One parties, products or the opportunity posted on the page, your response has to direct that individual to a Thirty-‐One Gifts website or phone number and not include your mythirtyone.ca website or contact information.

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• Content posted on the Thirty-‐One Google+ page is posted with Consultants and Customers in mind and is meant for sharing and interaction. If you would like to share this content, share the posts that are most meaningful to you in the following ways: o o o o

Share in one of your circles Share with the public Share with extended circles Refrain from tagging yourselves or others in the posts unless the post specifically asks you to do so.

Your Personal Google+ Page Your Google+ profile should be a reflection of YOU and not a vehicle for selling or advertising your Thirty-‐One business. You can talk about Thirty-‐One and your Thirty-‐One journey, but avoid overt selling and recruiting.

Thirty-‐One’s YouTube Channel The purpose of the Thirty-‐One YouTube channel (https://www.youtube.com/user/thirtyonegifts) is to provide a place for both Customers and Consultants to experience Thirty-‐One and share the love for Thirty-‐One products. We expect you to abide by YouTube’s terms and conditions when it comes to interacting on Thirty-‐One’s YouTube account. To review YouTube's Policies: http://www.youtube.com/yt/policyandsafety/policy.html. We highly suggest that you don't participate on YouTube until you review YouTube’s Community Guidelines at http://www.youtube.com/t/community_guidelines. If a recording is posted publicly on Thirty-‐One YouTube, then you may “share” directly from the Thirty-‐One YouTube account. • It is not a place for exchanging Consultant-‐specific information. o The majority of the fans on Thirty-‐One YouTube channel are Customers and these types of interactions can damage their perception of Thirty-‐One and Thirty-‐One Independent Consultants. • If you see inquiries about Thirty-‐One parties, products or the opportunity posted on a video, your response has to direct that individual to a Thirty-‐One Gifts website or phone number and not include your mythirtyone.ca website or contact information. • DO NOT send unsolicited messages to individuals posting on the Thirty-‐One YouTube channel • Content posted on the Thirty-‐One YouTube channel is posted with Consultants and Customers in mind and is meant for sharing. If you would like to share this content, share the videos that are most meaningful to you in the following ways: •

o o

Share to one of your social media sites such as Facebook Share in an email

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Your Personal Video Accounts (YouTube, Vimeo, etc.) You may use personal video accounts to support your Thirty-‐One business. There are a few guidelines that we ask you to abide by: The recording is consistent with our values and will not harm the reputation of our company, products or Consultants. • Video or audio recordings of Thirty-‐One events, including training sessions, speeches and Conference, are subject to copyright and owned by Thirty-‐One Gifts LLC. You may not record or distribute recordings of Thirty-‐One events without our prior written permission. • The recording is accurate, not misleading and complies with our policies and procedures, including those for using the Thirty-‐One name, logo and trademark. • You clearly identify yourself as an independent Consultant (in the content itself and in the profile section of the channel you are using). o Complete the about section: § Identify yourself as an Independent Thirty-‐One Consultant in the about section of your profile. § Use the provided fields in this area to link to your other social media channels and to your mythirtyone.ca replicated website. • You may also use video to support your business in other ways, which include: Hostess coaching, recruiting, training, product tips, solutions and support, etc. o If you are referring to any type of income, you must include the current Statement of Typical Participants Earnings (SOTPE) in your video. We reserve the right to approve or request immediate removal of your recordings about your Thirty-‐One business. •

Cindy’s Public Periscope Account The purpose of Cindy Monroe’s Periscope account (@cindymmonroe) is to provide an enjoyable viewer experience by sharing inspirational content, business tips, and to showcase the products and culture of Thirty-‐One. We expect you to abide by Periscope’s terms and conditions when it comes to interacting on Cindy’s Periscope account. To review Periscope’s community guidelines visit: https://www.periscope.tv/content

Your Personal Periscope Account

You may use Periscope to support your Thirty-‐One business. Similar to Facebook, do not use Periscope to sell or recruit. You can use it to showcase your favorite products, as they are a part of your everyday life. Prior to using Periscope, we recommend reviewing Periscope’s terms of service: https://www.periscope.tv/tos Profile photo – This photo is your identity on Periscope. The photo should be a photo of YOU, because often that may be someone’s first impression. Bio – Tell a little about yourself as a Thirty-‐One Independent Consultant if you will be mentioning Thirty-‐ One or Thirty-‐One products in your video.

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Here are some of the guidelines that we ask that you abide by: • The recording is consistent with our values and will not harm the reputation of our company, product or Consultants. • Video or audio recordings of Thirty-‐One events, including training sessions, speeches and Conference, are subject to copyright and owned by Thirty-‐One Gifts LLC. You may not record or distribute recordings of Thirty-‐One events without our prior written permission. • The recording is accurate, not misleading and complies with our policies and procedures, including those for using the Thirty-‐One name, logo and trademark. We reserve the right to request immediate removal of your recordings about your Thirty-‐One business.

Blogs

If you’re writing a blog that mentions Thirty-‐One, please identify yourself as an independent Thirty-‐One Consultant and clearly state that the views expressed on the blog or website are yours alone and don’t represent the views of Thirty-‐One Gifts LLC. You may not share our confidential information in any blog. For more information about what information is “confidential,” please read the “Confidential Information” section under “Is there anything else I should know about being a Consultant?” If you post about Thirty-‐One features, products, parties or experiences, you may include information that directs traffic to your Replicated Website (www.mythirtyone.ca).

Is there anything else I should know about being a Consultant? Yes. There are some other important things you should know about being a Consultant. We’ve outlined them below. Fair warning -‐ there is a lot of technical and legal language in this section!

Celebrate, Encourage and Reward We believe in celebrating, encouraging and rewarding others for who they are. When you or someone in your Downline has an important life event (like a birth, marriage, serious illness or death), please contact CAGS at CAGScanada@thirtyonegifts.ca so we can support you!

Consultant Product Ideas, Marketing Materials and Training Tools We love our Consultants’ passion and enthusiasm for Thirty-‐One. We are often impressed by our Consultants’ ideas for new products, as well as the training tools and marketing materials they create. Our Consultants often send these product ideas, training tools and marketing materials to us. We sometimes want to use these product ideas or share these training tools and marketing materials with other Consultants. This is why it’s important for you to understand that any unsolicited suggestions or information you send us will be treated as non-‐proprietary and non-‐confidential and will become our property for use without compensation in our sole and unlimited discretion. You understand and agree that: •

When you share your materials and ideas with us (including new product ideas, product improvements, manufacturing improvements, training tools and techniques, and marketing

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materials), you are assigning to us any and all personal and intellectual property rights you may have to those materials and ideas (including any designs, works of art, appearances, inventions, methods, processes and improvements). •

We may register or patent any of these items at our sole discretion.

•

You will perform any acts that we believe are necessary for us to seek registration of a copyright, patent or trademark for any of the assigned rights and to vest the title you have conveyed to us.

Amendments We reserve the right to amend the: •

Consultant Agreement

•

Career Path

•

Consultant Guidebook

•

policies and procedures posted on ThirtyOneToday.ca

• price and selection of our products, including which products can be personalized You understand and agree that we can make these amendments at our sole discretion, at any time and without prior notice to you. We will communicate amendments to you through our official company publications, postings on our websites, special mailings, voice messages or email. Any amendments we make will become effective and binding on all of our Consultants 30 days after they are communicated. Amended policies will not apply retroactively to conduct that occurred prior to the effective date of the amendment. Your continued operation of your Thirty-‐One business or your acceptance of any commissions, overrides, bonuses or other benefits after the effective date of any amendment represents your acceptance of that amendment (and any previous amendments). If an amendment conflicts with any original documents, then the amendment will control.

Contractual Remedies Available to Thirty-‐One We expect all of our Consultants to live our values. It’s important for you to follow the highest standards of ethics, honesty, integrity and professionalism when dealing with customers, hostesses, fellow Consultants and Thirty-‐One employees. We may, at our sole discretion, take any of the following contractual actions if you violate any of our policies and procedures or engage in any illegal, fraudulent, deceptive or unethical behaviour: •

Issue a written warning

•

Require you to correct the behaviour

•

Place your account on hold and suspend your authority to operate your Thirty-‐One business

•

Seek a liquidated damages amount from you, which we may decide to withhold from your commissions

•

Reassign one or more Consultants in your Downline to another Sponsor

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•

Terminate your Consultant Agreement (Please read “Effect of Resignation or Termination.”)

•

Reduce your current and/or lifetime Consultant status (temporarily or permanently)

•

Take legal action against you

•

Take any other action that we believe is appropriate and practical to fairly resolve any harm caused by your behaviour

Please be advised that we will report all cases of criminal behaviour to the proper authorities.

Concerns and Complaints If you have a concern or complaint about another Consultant regarding any practice or conduct related to Thirty-‐One, please try to resolve the situation and report it to the other Consultant’s Sponsor. If the situation can’t be resolved, please report it to CAGS at CAGScanada@thirtyonegifts.ca.

Reporting Policy Violations If you learn that another Consultant has violated any of our policies or procedures, please report the violation to CAGS at CAGScanada@thirtyonegifts.ca. If possible, we’ll keep your report and/or identity confidential.

Acts by Members of Your Household or Business Entity You will be held responsible for violations of our policies or procedures committed by any: •

member of your immediate household

•

business entity (i.e., a corporation, partnership, etc.) with which you are associated.

If this happens, we may take action against you, including possible termination of your Consultant Agreement.

Transferring Your Thirty-‐One Business

You may not sell, give away, assign or otherwise transfer your Thirty-‐One business or any of your rights and obligations under the Consultant Agreement.

Consultant Release

From time to time in your role as a Consultant, you may participate in Thirty-‐One events or provide us with a testimonial about your experience as a Consultant. In connection with these events and testimonials, we may record testimonials, quotes, pictures, photographs, video recordings, audio recordings, and the like (“Recorded Materials”) containing your name, image, likeness, and/or voice. By entering into the Consultant Agreement and in consideration of your participation in such events, you agree that: •

We may produce and distribute the Recorded Materials, or parts of them, in our business in any manner, including for training and education purposes, and in promotional materials.

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•

You’re assigning to us any and all copyright interests and rights of publicity you may have to the Recorded Materials, without any obligation for us to compensate you, whether or not you continue to be a Consultant.

•

You’re waiving any right to inspect or approve any Recorded Materials or other materials that include any Recorded Materials.

•

You’re agreeing that we may edit or modify the Recorded Materials or combine the Recorded Materials with other images, voices, performances, or material, as long as such editing, modification, or combination, is not defamatory, disparaging or misleading.

•

You’re agreeing not to take any legal action against us for, and you release us from, all claims and liabilities in connection with the use of your name, image, likeness, or voice, claims for invasion of privacy, violation of right of publicity, defamation, personal injury, property damage, loss of services, or any other cause of action relating to use of the Recorded Materials.

•

You’re agreeing that you don’t have any right, title or interest in any Recorded Materials or derivative work, which uses your name, testimonial, quote, image, likeness or voice.

Confidential Information As a Consultant, you will learn or have access to “Confidential Information,” which includes: •

Lists of Customers and their contact information

•

Upcoming product releases

•

Information about our sales figures, financial information, number of products sold, etc.

•

Lists of Consultants in your Upline and Downline, their contact information, personal and group sales volume, status, and Paid At Titles

• Information about our products that has not been made available to the general public This Confidential Information belongs to Thirty-‐One and constitutes a “trade secret” for legal purposes. We may make the Confidential Information available to you only for the purpose of supporting you, your Downline and to help develop your Thirty-‐One business. You may use Confidential Information only in connection with your Thirty-‐One business and for no other purpose. You must protect the Confidential Information and not share or make it available to any other person or business entity other than your Downline until instructed by Home Office. You understand and agree that any wrongful disclosure of the Confidential Information will cause us immediate and irreparable harm and that we may pursue any and all legal remedies available against you if you violate your obligations regarding our Confidential Information. This provision will survive the termination of your Consultant Agreement. Information that we learn about you once you become a Consultant, including but not limited to your personal information, sales volume or other financial information related to your Thirty-‐One business or Paid-‐At Title, also belongs to us. We may share this information with our affiliates and/or unrelated third parties.

Reports We strive to provide you with accurate and reliable reports (e.g., Personal Volume, commissions, overrides, Downline activity reports and Downline sponsoring activity) about your Thirty-‐One business, © January 2016 Thirty-‐One Gifts Canada Inc.

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but sometimes there are errors. These errors can be caused in a number of ways, including human error, computer errors, the timeliness of order processing, denial of credit card payments, returned products, etc. Therefore, we simply can’t guarantee the accuracy of the reports we provide to you. ALL INFORMATION (INCLUDING PERSONAL AND GROUP SALES VOLUME) IS PROVIDED TO YOU “AS IS” WITHOUT WARRANTIES, EXPRESS OR IMPLIED, OR REPRESENTATIONS OF ANY KIND WHATSOEVER, IN PARTICULAR BUT WITHOUT LIMITATION THERE ARE NO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, OR NON-‐INFRINGEMENT. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, THIRTY-‐ONE AND/OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION WILL IN NO EVENT BE LIABLE TO ANY CONSULTANT OR ANYONE ELSE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT ARISE OUT OF THE USE OF OR ACCESS TO PERSONAL AND/OR GROUP 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 THIRTY-‐ONE OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. TO THE FULLEST EXTENT PERMITTED BY LAW, THIRTY-‐ONE 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.

Indemnification Indemnification is one party’s agreement to pay for the losses another party suffers. It’s similar to an insurance policy. For example, if your home is damaged by an accidental fire, the insurance company will indemnify you (i.e., it will pay for the losses you suffered because of the fire). This same concept applies to our contract with you. As a Consultant, you will indemnify and hold harmless Thirty-‐One (and our members, managers, directors, officers, employees, agents and assigns) from and against any damages, losses, claims, liabilities and expenses (including attorneys’ fees) related to your: •

activities as a Consultant (including any statements and misrepresentations you make in person, online or otherwise)

•

breach of any of our policies or procedures (whether or not contained in the Consultant Agreement or Consultant Guidebook)

• violation of, or failure to comply with, any law or regulation. Your obligation to indemnify us will continue to survive even after your Consultant Agreement ends or is terminated.

Class Action Waiver No party shall assert any claim as a class, collective, or representative action if the amount of the party’s individual claim exceeds $1,000. This paragraph shall be enforceable where the applicable law permits reasonable class action waivers and shall have no effect where the applicable law prohibits class action

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waivers as a matter of law. In any case this class action waiver provision, as well as any other provision, is severable in the event any court finds it unenforceable or inapplicable in a particular case. The parties agree that class action claims are not arbitrable under any circumstances; but in the event a court of competent jurisdiction declines to certify a class, all individual plaintiffs shall resolve any and all remaining claims by way of individual arbitration.

Mediation, Arbitration and Legal Proceedings We hope to enjoy a smooth business relationship with you, but there may be times when we don’t see eye to eye. This section describes the process that we will use to resolve any serious disputes that may arise between us. These concepts are complicated, so we thought these definitions might help you understand the process: •

Mediation is a voluntary process in which two or more parties involved in a dispute work with an impartial party, the mediator, to generate their own solutions in settling their conflict. Mediation is about finding a solution that works for both parties, which is different from a court case or arbitration where one party wins and the other party loses.

•

Arbitration is a process to resolve a dispute outside the courts in which the parties to the dispute refer the case to an “arbitrator” and agree to be bound by the arbitrator’s decision. It’s a settlement technique in which the arbitrator reviews the case and imposes a decision that is legally binding for both sides.

Mediation If there is a serious dispute between us relating to the Consultant Agreement, we agree to meet in good faith and attempt to resolve the dispute though mediation instead of a lawsuit. Either party may request mediation by sending a Notice of Desire to Mediate. One individual who is acceptable to you and us will be appointed as mediator. If the parties cannot agree on a mediator within seven (7) days of the receipt of the Notice of Desire to Mediate, the mediator will be appointed by the Canadian Arbitration Association. The mediation will occur within 60 days from the date on which the mediator is appointed. The mediator’s fees and costs, as well as the costs of holding and conducting the mediation, will be divided equally between the parties. Each party will pay its portion of the anticipated shared fees and costs at least 10 days in advance of the mediation. Each party will pay its own attorneys’ fees, costs, and individual expenses associated with conducting and attending the mediation. The mediation will be held in Toronto, Ontario and the language of the mediation will be English. If the mediation is unsuccessful, both of us agree that any controversy or claim arising out of or relating to the Consultant Agreement will be settled by arbitration instead of a lawsuit.

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Arbitration The arbitration will be filed with, and administered by, the Canadian Arbitration Association (“CAA”) under its respective rules and procedures. The Arbitration Rules and Expedited Arbitration Rules of the CAA are available on the CAA’s website at canadianarbitrationassociation.ca. Notwithstanding the rules of the CAA the following will apply to any arbitration: •

The Ontario Evidence Act will apply in all cases.

•

The parties will be entitled to all discovery rights permitted by the Ontario Rules of Civil Procedure.

•

The parties will be entitled to bring motions under Rule 19 and/or Rule 20 of the Ontario Rules of Civil Procedure.

•

The arbitration will occur within 180 days from the date on which the arbitrator is appointed, and will last no more than five business days.

•

The parties will be allotted equal time to present their respective cases, including cross-‐ examinations.

All arbitration proceedings will be held in Toronto, Ontario. There will be one arbitrator selected from the panel that the Alternate Dispute Resolution service provides. Each party will be responsible for its own costs and expenses of arbitration, including legal and filing fees. The decision of the arbitrator will be final and binding on the parties and may, if necessary, be reduced to a judgment in any court of competent jurisdiction. The language of the arbitration shall be English. This agreement to arbitrate will survive the cancellation or termination of the Consultant Agreement. The parties and the arbitrator will maintain the confidentiality of the entire arbitration process and will not disclose to any person not directly involved in the arbitration process the: •

substance of, or basis for, the controversy, dispute, or claim

•

content of any testimony or other evidence presented at an arbitration hearing or obtained through discovery in arbitration

•

terms or amount of any arbitration award

•

rulings of the arbitrator on the procedural and/or substantive issues involved in the case

We both agree that any arbitration will only be conducted on an individual basis and that if it is determined, despite the clear and unambiguous intent of the parties as stated in this Consultant Guidebook, to permit arbitration other than on an individual basis, the arbitration will immediately be terminated and neither party will be under any obligation to continue in the arbitration. In the case of such termination, or if the arbitration clause is deemed inapplicable or invalid, or otherwise is deemed to allow for litigation of disputes in court, we both waive, to the fullest extent allowed by law, any right to pursue, claim, or participate as a plaintiff or a class member in any claim on a class, collective, or © January 2016 Thirty-‐One Gifts Canada Inc.

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consolidated basis or in a representative capacity.

Legal Proceedings Notwithstanding the foregoing, nothing in the Consultant Guidebook will prevent either party from applying to and obtaining from any court having jurisdiction a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction or other relief available to safeguard and protect its intellectual property rights, and/or to enforce its rights under the non-‐solicitation provision of the Consultant Guidebook.

Either party may, if necessary, commence legal proceedings in a court of competent jurisdiction in order to enforce a final decision of an arbiter. In any legal proceeding relating to your Consultant Agreement, both of us agree to waive any rights we may have to a trial by jury.

Governing Law, Jurisdiction and Venue Jurisdiction and venue of any matter not subject to arbitration will reside exclusively in Toronto, Ontario, Canada. The Ontario Arbitration Act, or any arbitration statute that may supersede it will govern all matters relating to arbitration, including any proceedings undertaken in respect thereof. The law of the Province of Ontario, and any federal laws that may be applicable, will govern all other matters relating to or arising from the Consultant Agreement.

Severability If any part of: • the Consultant Agreement •

the Career Path

•

the Consultant Guidebook or

•

any other document, policy or procedure referred to in the Consultant Guidebook

is declared invalid by a court of competent jurisdiction, then (1) that part will be reformed and enforced to reflect its original purpose as closely as possible and (2) the rest of the document will remain in full force and effect.

Waiver We maintain our right to insist on compliance with our policies and procedures and with applicable laws governing business conduct. If we permit an exception to the rules, that doesn’t mean we’ll permit the same or any other exception to the rules in the future. This language deals with the concept of “waiver” and you understand and agree that we aren’t waiving any of our rights under any circumstances. © January 2016 Thirty-‐One Gifts Canada Inc.

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Limitation of Damages To the maximum extent permitted by law, Thirty-‐One (and our members, managers, directors, officers, employees, agents and assigns) will not be liable for, and you hereby release us from, and waive any claim for lost profits, incidental, special, consequential or punitive damages which may arise out of any claim whatsoever relating to the operation of our business or our business relationship with you. You also agree that, if you make a claim against us, our liability will be limited to the amount of any commissions and overrides we’ve paid you during the preceding year, as well as the amount of any accrued and unpaid commissions and overrides.

Thank You Thank you for reading our Consultant Guidebook. We’re confident it will help you get off to a good start in conducting an ethical and successful Thirty-‐One business. Remember – you’re responsible for reading, understanding and following all of the policies, procedures and other information in this Consultant Guidebook. If there is something you don’t understand, please ask your Sponsor or you can always contact CAGS at CAGSCanada@thirtyonegifts.ca or 855-‐Gifts31 (855-‐443-‐8731). We are pleased you decided to join Thirty-‐One and look forward to celebrating many successes together!

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GLOSSARY Arbitration refers to a process to resolve a dispute outside the courts in which the parties to the dispute refer the case to an “arbitrator” and agree to be bound by the arbitrator’s decision. It is a settlement technique in which the arbitrator reviews the case and imposes a decision that is legally binding for both sides. Business Supply Order means a Consultant’s order of business supplies (including products) offered by Thirty-‐One at a discount to assist the Consultant’s operation of her Thirty-‐One business. CAGS refers to Thirty-‐One’s Career and Guideline Support Department. Our representatives are available to assist you with any questions regarding our Consultant Guidebook and/or Career Path questions. Consultants can reach CAGS by sending an email to CAGSCanada@thirtyonegifts.ca or calling us care of 855-‐Gifts31 (855-‐443-‐8731). Career Path refers to Thirty-‐One’s basic compensation and Paid At Title advancement plan. Please see the “What is the Career Path?” section of this Consultant Guidebook for more information. Consultant Agreement means the Independent Sales Consultant Application and Agreement between a Consultant and Thirty-‐One. It is the legal agreement between a Consultant and Thirty-‐One and includes all of the policies and procedures contained in this Consultant Guidebook. Consultant means Independent Sales Consultant of Thirty-‐One. Consultants are independent contractors, not employees, of Thirty-‐One. Please see “Independent Contractor Status” in the “What does it mean to be a Thirty-‐One Consultant?” for more information.

Consultant ID means the identification number Thirty-‐One assigns to a Consultant when she becomes a Consultant. Consultant Support is the team of dedicated staff Thirty-‐One has to support Consultants in the operation of their Thirty-‐One businesses. You can contact Consultant Support by sending an email to ordersupportcanada@thirtyonegifts.ca, calling 855-‐Gifts31 (855-‐443-‐8731) or faxing to (614) 337-‐1154. Consultant Support’s hours of operation are posted on ThirtyOneToday.ca. DIQ or Director in Qualification refers to a Consultant’s standing during the first month in which the Consultant satisfies all requirements to promote to the Paid At Title of Director. Downline refers to the Consultants sponsored by an individual Consultant and the Consultants sponsored beneath them. Indemnification refers to one party’s agreement to pay for the losses another party suffers. It’s similar to an insurance policy. For example, if your home is damaged by an accidental fire, the insurance company will indemnify you (i.e., it will pay for the losses you suffered because of the fire). This same concept applies to our contract with you. Mediation refers to a voluntary process in which two or more parties involved in a dispute work with an impartial party, the mediator, to generate their own solutions in settling their conflict. Mediation is about finding a solution that works for both parties, which is different from a court case or arbitration where one party wins and the other party loses. Overrides means the commissions a Consultant earns on sales arranged by the Consultants in her Downline.

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Glossary Continued Paid At Title means the rank a Consultant achieves as she moves through Thirty-‐One’s Career Path. A Consultant’s Paid At Title depends on her Personal Volume and the sales volume of the Consultants in her Downline. Please read “What is the Career Path?” for more information. Party Order means orders of $200 or more in Personal Volume. Pass-‐by refers to a situation when a Consultant promotes past the level of her Sponsor. Please read “Pass-‐By” under the “What is the Career Path?” section of this Consultant Guidebook for more information. PEQA means Personally Enrolled, Qualified and Active Consultants. Personal Volume means the dollar value of the products we sell to retail Customers, and that you have arranged, less sales tax and shipping & handling charges. Consultants don’t receive commissions on discounted purchases (e.g., Hostess Credit, Hostess half-‐price items, Hostess Exclusive items, add-‐on kits, and business supplies), sales tax and shipping & handling fees, and these amounts don’t count toward Personal Volume totals. Personal Information (PI or PII) means information about an identifiable individual. It includes any information that can be connected with an identifiable individual. Replicated Website means the website we provide to you www.mythirtyone.ca/[your Consultant ID]. Retail Order means orders of less than $200 in Personal Volume. Roll-‐Up (Permanent) means that when a vacancy occurs in a personal group, each © January 2016 Thirty-‐One Gifts Canada Inc.

Consultant in the first level immediately below the terminated Consultant on the date of the cancellation will be moved to the first level of the terminated Consultant’s Sponsor. For example, Ann sponsors Bonnie, and Bonnie sponsors Cathy, Chloe, and Charlotte. If Bonnie terminates her business, then Cathy, Chloe, and Charlotte will “Roll-‐Up” to Ann’s first level. Sponsor refers to the person who enrolls s an individual as a Thirty-‐One Consultant (or the person a Consultant is transferred to through a roll-‐up or otherwise). Status refers to a Consultant’s standing with Thirty-‐One. There are different status levels: Active, Qualified, Inactive, Resigned and Terminated. Please read the section of this Consultant Guidebook called “Are there different status levels for Consultants?” for more information. SOTPE or Statement of Typical Participant Earnings refers to the document we have created to provide truthful, fair, reasonable, timely, and comprehensive information about Consultants’ income. When Consultants present or discuss the Thirty-‐One opportunity or Career Path to potential recruits, they can’t make income projections, income claims or disclose their Thirty-‐One income (including the showing of cheques, copies of cheques, bank statements, or tax records) unless they provide the potential recruits with a current copy of the SOTPE. Please read “Income Claims” under the “How does sponsoring new Consultants work?” section of this Consultant Guidebook for more information. Thirty-‐One means Thirty-‐One Gifts Canada Inc., a British Columbia corporation. Thirty-‐Once Gives -‐ We are proud supporters of several nonprofit organizations that align with our mission, and we offer our support in a

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Glossary Continued number of ways, including product donations, Consultant Giving, Home Office community partnership and the Thirty-‐One Gives Fund. ThirtyOneToday.ca refers to the website Thirty-‐ One maintains for its Consultants. Upline means to a Consultant’s Sponsor and the Consultants sponsored above her. Virtual Office refers to the software where you enter your orders, view your sales reports and all other pertinent information to support your business.

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THIRTY-‐ONE GIFTS CANADA INC. STATEMENT OF TYPICAL PARTICIPANT’S EARNINGS – 2014 The primary source of income of a Typical Participant in the Compensation Plan (the “Plan”) of Thirty-One Gifts Canada Inc. (“Thirty-One”) is from compensation on personal and downline sales of products and/or services. Personal earnings will vary. A Typical Participant in the Plan is defined as an Independent Consultant who actively engages in the activities necessary to realize the benefits of the Plan (i.e. active in at least five of twelve months). A Typical Participant in the Plan earns between Cdn $201 and $1,989 annually. Please note that these earnings have been derived from the past earnings experiences of Thirty-One. This Statement of Typical Participant’s Earnings will be updated annually.

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