Consultant GUIDEBOOK. celebrate encourage reward

Transcription

1 Consultant GUIDEBOOK celebrate encourage reward

2 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 ( ). Congratulations on joining the Thirty- One Gifts Family!

3 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 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 Incentives and Rewards Your Downline April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page i

4 May I take a leave of absence from my Thirty- One business? Personal Leave Military Leave What is the 2016 Career Path? Promoting to Director Development Obligations Permanent Roll- Ups Pass- By How does sponsoring new Consultants work? Income Claims New Recruit Applications Recruiting From Other Direct Selling Companies Soliciting Thirty- One Customers and Consultants Changing Sponsors How will I receive payments from Thirty- One? General Payment Schedule Form of Payment Bank Fees Errors or Questions Offsets Do I have to pay taxes on the income I receive from Thirty- One? What are the policies for offering Thirty- One products for sale? Truthfulness and Integrity Consultant Support Legal Compliance Sales Receipts and Customer Cancellation Rights Licenses No Exclusive Territory Personalized Products Product Availability Selling for Other Direct Selling Companies (Senior Executive Director and Above) April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page ii

5 Selling Other Brands or Products Discounting Thirty- One Products Buying Extra Products and Improper Enrollment of Consultants Recruitment Fees Prohibitied Ordering Order Deadlines and Site Downtime Customer Payments and Protecting Customer Information Shipping and Handling Address Changes for Orders Return Policy Governmental Approval or Endorsement Where can I sell products and recruit new Consultants? Retail Locations Mail Order Houses and Distribution Centers Trade Shows and Expositions Insurance Telemarketing Clearance and Outlet Sales How does Thirty- One support charities and fundraisers? Thirty- One Gives Thirty- One Gives Corporate Logo Thirty- One Gives Independent Consultant Logo Fundraisers Sales Tax to Exempt Organizations What are the high level guidelines for marketing? Identify Yourself as an Independent Thirty- One Consultant Protecting the Thirty- One Name, Logo, Trademark, Designs, Images & Symbols Marketing Materials Talking to the Media Home Office Leads How can I market and support my Thirty- One business? Domain Names, Addresses and Online Aliases/User Names Advertisements/Paid Media Print Advertising 38 April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page iii

6 Sponsored Links/Pay- Per- Click Ads Search Engines/Metatags/Keywords Banner Advertising Replicated Websites External Websites Online Sales Unsolicited Spamming / Mass ing Unsolicited Faxes Spam Linking Links What is social media? Our Goal for Social Media Facebook Additional Facebook Guidelines Thirty- One s Public Facebook Page Thirty- One s Public Conference Facebook Page Your Personal Facebook Profile Public Figure Page/Business Person Facebook Groups Closed Groups Thirty- One s Home Office Groups Confidentiality Reminder for Social Media! Creating and Posting Events on Facebook Facebook Advertising Twitter Twitter Advertising Pinterest Thirty- One s Public Pinterest Account ( 52 Personal Pinterest Account Thirty- One s Public Instagram Account Your Personal Instagram Accounts Thirty- One s Public Google+ Page.53 Your Personal Google+ Page Thirty- One s YouTube Channel April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page iv

7 Your Personal Video Accounts (YouTube, Vimeo, etc.) Cindy s Public Periscope Account Your Personal Periscope Account Blogs Is there anything else I should know about being a Consultant? Celebrate, Encourage and Reward Consultant Product Ideas, Marketing Materials and Training Tools Amendments Contractual Remedies Available to Thirty- One Concerns and Complaints Reporting Policy Violations Acts by Members of Your Household or Business Entity Transferring Your Thirty- One Business Consultant Release Confidential Information Reports Indemnification Class Action Waiver Mediation, Arbitration and Legal Proceedings Mediation Arbitration Legal Proceedings Governing Law, Jurisdiction and Venue Severability Waiver Limitation of Damages Thank You GLOSSARY April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page v

8 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 April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 1

9 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. April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 2

10 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 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 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. April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 3

11 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 Address It s very important that we have your current address, telephone number and 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 Attn: CAGS April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 4

12 Fax it to us c/o Thirty- One Gifts LLC at (614) 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 Qualified Inactive Resigned 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. A Consultant who has submitted at least $1,000 in Personal Volume. 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). 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. April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 5

13 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 ( ) 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? April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 6

14 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 (CAGSCanada@thirtyonegifts.ca) or fax ( ). 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 ) 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. April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 7

15 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. April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 8

16 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. April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 9

17 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 April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 10

18 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. April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 11

19 Career Path Promotion Requirements Consultant Submit at least $200 in Personal Volume (PV) every rolling three months Qualify with $1,000 in PV Senior Consultant 2-4 Personally Enrolled, Qualified and Active Consultants (PEQA) Submit $200 PV every rolling three months Director 4+PEQA Consultants (Roll- ups do not count) Submit $1,000 PV every month A min. of $4,000 Team Volume (PV + Generation 0 Sales) Promotion occurs the month following DIQ month* if requirements are met No Title Compression** Sales Compression still applies*** Do not need 4 new PEQAs to re- promote Reward Expectations Paid At Maintenance Requirements 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 25% Commission on PV 3% Personal Sales Bonus 3% Generation 0 Override 2% Generation 1 Override $1,000 one- time Director Promotion Bonus**** $1,000 Developing Director Bonus***** Book Sell Sponsor Same as Consultant Engage New Consultants to Book, Sell & Sponsor Same as Consultant Train your Generation 0, including hosting team meetings Communicate with your team Recognize your team Develop your team Make welcome calls to new GO Consultants Send a monthly newsletter/recognition letter to GO Attend, host or co- host company events 2-4+ Qualified, Sponsored and Active Consultants (QSC) Submit $200 PV every rolling three months Must be Paid- at a Director once every three consecutive months 4+ Qualified, Sponsored and Active Consultants (QSC) Submit $1,000 PV every month A min. of $4,000 Team Volume (PV + Generation 0 Sales) *DIQ (Director in Qualification) Month The first month a Consultant meets all Director Promotion Qualifications. As long as all requirements are met in the 2 nd consecutive month, title will change on the 10 th of the 3 rd consecutive month, and pay will be retroactive to the amount earned in the 2 nd month. Director Re- promotes must through DIQ. April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 12

20 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 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)****** 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 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 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 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 April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 13

21 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 April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 14

22 **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 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 2 nd month, title will change on the 10 th of the 3 rd month, and pay will be retroactive to the amount earned in the 2 nd 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. April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 15

23 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). April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 16

24 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 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 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: 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. April 2016 Thirty- One Gifts Canada Inc Canada Consultant Guidebook Page 17