U.S.A business guide. Policies and Procedures for administering your business

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U.S.A. 2018 business guide Policies and Procedures for administering your business

CONTACTING RENA WARE/ USING THIS GUIDE... 3 YOUR REGISTRATION WITH RENA WARE... 4 STANDARDS OF DOING BUSINESS... 5 DIRECT SELLING LAWS... 6 LEGAL AND SPECIAL STATE REQUIREMENTS... 6 COMPANY COMMUNICATIONS... 8 SALES AND CREDIT POLICIES... 8 HOW TO PLACE AN ORDER... 10 DELIVERY OF MERCHANDISE... 12 PRODUCT WARRANTIES... 12 WEB ACCESS... 12 COMPANY APPROVED SALES AND TRAINING TOOLS... 15 USE OF THE RENA WARE LOGO AND TRADEMARKS... 15 RENADRIVE... 16 INTERNET AND SOCIAL MEDIA POLICY... 16 RENAWARDS PROGRAM... 22 TRAVEL AWARD POLICY... 26 ENROLLING A NEW RECRUIT... 27 INACTIVITY AND TERMINATION OF AGREEMENT... 27 REJOINING RENA WARE... 27 LEADER SECTION... 27 HOW YOU RECEIVE YOUR EARNINGS... 31 EARNINGS PLAN... 32 EARNINGS PLAN SUMMARY... 41 FREQUENTLY ASKED QUESTIONS... 42 GLOSSARY... 43 2

Rena Ware Corporate Website: Service Centers U.S.A. Web Access U.S.A. Administrative Office Rena Ware Home Office 3

Rena Ware ID Code Self-Evaluation on Direct Selling Best Practices: Starter Kit Starter Kit Return Policy: Promotion and Business Supplies: Annual Renewal: Submissions Release: 4

Code of Ethics and Standards of Doing Business In the preparation of contracts: 5

Direct Selling Association The DSA Code of Ethics: Contingent or Referral Sales 6

7

Office Code: a) Cash Sale: b) Credit Cards: c) Financed Orders: 8

d) Add-on Sales: e) Deposit: f) Bad Debt Charge-Back: 9

In the preparation of contracts and purchase orders: Submitting a Financed Order: 10

Rewrites: Consultant Personal Order: Hostess Party Processing Guidelines Submitting Orders 11

12

Business Center: Online Office: 13

Rena Ware Training: 14

Prohibited Uses 15

Approved Materials and Usage Guidelines RenaDrive Benefits: General Internet Policy and Guidelines 16

17

18

Guidelines on Editing Your Personal Story 19

20

21

Submission for Posting: Promotion Certificates and Pins 22

Platinum Executive Leader Stars Certificate Awards Trophy Awards 23

Million Club Rings Ring Program Transition Notes 24

Medal of Honor Categories Medal of Honor Additional Rules 25

National Trips Tour Élite Zylstra The value of the trip will be reported as taxable income to the winners. 26

The value of the prizes will be reported as taxable income to the winners. 27

Leader Responsibilities: Self-Evaluation on Direct Selling Best Practices (RW32) How to administer the Self-Evaluation Reinstating Consultants 28

Submitting Orders Earned Literature Credit Program: 29

30

10% extra points may be applied to orders credit approved by Friday of the 1st week of the Bonus Period when the Points Plus Program is in effect. The extra 10% will not affect the CV of approved orders. 31

Abbreviations and Special Terms: 32

1. Commissions Personal Recruiting Bonus 3. Group Development Bonus (GDB) Group Development Bonus (GDB) Schedule 33

4. Leader Bonuses Leader Level Bonus Basic Schedule Leader Level Bonus Premium Schedule Average of current and prior period GPV requirements 5. Business Development Fund 34

6. Elite Leadership Bonuses 7. Infinity Pool Paid for Performance 35

Start as a Consultant Benefits: Qualifications to become a Consultant: Benefits: Qualifications to become a Team Builder: Qualifications to be "Paid As" a Team Builder: 36

Earn 3%-5% Leader Bonus on CV of "Approved" sales of all second Generation Qualified Groups. 37

38

Maintaining Qualified Group Status: 39

Maintaining Your Achieved Title: Team Builder through Executive Leader: Maintaining Your Achieved Title: Silver through Platinum Executive Leader: 40

Bonus Period criteria to earn Promotion Consultant Team Builder Leader Senior Leader Executive Leader Silver Executive Leader* Gold Executive Leader* PPV (average) 50 (1) 50 50 50 GPV (average) 2,000 (1) 2,000 2,000 2,000 2,000 2,000 2,000 1st Generation Qualified Groups 1 2 3 4 6 9 TOV 20,000 40,000 80,000 (1) Minimum in each of 2 consecutive Bonus Periods for promotion from Consultant to any higher level (no averaging). Platinum Executive Leader* *Elite Leadership levels must meet the requirements for 2 consecutive Bonus Periods and have been "Paid As" the previous level title in the prior Bonus Period (In the prior 2 Bonus Periods for Platinum Executive Leader). NOTE: Failing to be "Paid As" your title for 6 consecutive Bonus Periods (13 for Elite Leadership levels) will result in the loss of that title. You will be listed as your highest Paid As level achieved in the prior 6 Bonus Periods (13 for Elite Leadership levels). Earnings (when "Paid As" your title) 20% Commission on the CV of personal "Approved" sales. Personal Recruiting Bonus on the CV of "Approved" sales of your personal Recruits. Group Development Bonus on the CV of "Approved" sales of your Personal Group. Leader Bonus on the CV of "Approved" sales of 1st Generation Qualified Groups. Leader Bonus on the CV of "Approved" sales of 2nd Generation Qualified Groups. Leader Bonus on the CV of "Approved" sales of 3rd Generation Qualified Groups. Business Development Fund on approved CV of 1st generation Qualified Groups. Silver Elite Leadership Bonus on the CV of total Organization "Approved" sales down to the next Silver Executive Leader or above. Gold Elite Leadership Bonus on the CV of total Organization "Approved" sales down to the next Gold Executive Leader or above. Platinum Elite Leadership Bonus on the CV of total Organization "Approved" sales down to the next Platinum Executive Leader. Infinity Pool of 0.5% of country sales. One share per blocked "Paid As" Platinum Executive Leader. Group Development Bonus (GDB) Schedule* 20% 20% 20% 20% 20% 20% 20% 20% 3% up to 15% up to 15% up to 15% up to 15% up to 15% up to 15% up to 15% 5-7% 5-7% 5-7% 5-7% 5-7% 5-7% 3-5% 3-5% 3-5% 3-5% 3-5% 2-3% 2-3% 2-3% 2-3% 2% 2% 2% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% varies 41

1. What happens if I fail to meet my Qualified Group Status for a given Bonus Period? 2. What happens if someone in my group promotes to Team Builder? 3. What happens if someone promotes from my group and fails to be "Paid As" a Team Builder in a given Bonus Period? 4. Am I still paid on my second Generation if my first Generation fails to qualify in a given Bonus Period? 5. How can I keep my Active status? 6. Does the two-period averaging of GPV for Qualified Group Status purposes affect the calculation of the Group Development Bonus? 42

43

44

30. ORGANIZATION: All of the people that you personally recruit, plus all of the people that your Recruits personally recruit, and so on, through unlimited levels. 31. "PAID AS": Your earnings are based not only on your Achieved Title, but also on meeting certain requirements each Bonus Period to be "Paid As" that title. For example, you may hold the achieved title of Leader, but to receive the full benefits of having achieved that title, you must also meet the qualifications as stipulated in the Earnings Plan to be "Paid-As" a Leader. If you do not meet the qualifications in a given Bonus Period, you will be "Paid As" the highest level for which you do qualify. You may, however, retain your Achieved Title of Leader even if you do not meet the qualifications in a given Bonus Period to be "Paid As" that title. 32. PERSONAL POINT VOLUME (PPV): The total PV of all products personally sold by you for a given period. 33. SPONSOR : When you recruit someone, you are that person's Recruiter, and by default, also that person's Sponsor. As the Recruiter /Sponsor, you are eligible to earn Bonuses on sales made by your Recruit, including the Recruiting Bonus. You will remain the person's Recruiter/Sponsor for as long as you remain active with the Company (unless your Recruit terminates). If you should become inactive, or you or the Company terminates your agreement with Rena Ware, your organization including the people you recruited and anyone else you are the Sponsor of, will Roll-Up to the next qualified person who will also become their new Sponsor. The new Sponsor will then become eligible to earn Bonuses on sales made by those people. Please note that the Recruiting Bonus is only paid to the original Recruiter and is not transferable. 34. BONUS PERIOD: The Biweekly period in which all Bonuses and promotion qualifications are calculated. 35. BIWEEKLY: Occurring once every two weeks. 36. RECRUIT: Someone who signs and submits an acceptable Independent Consultant Agreement (RW1) to Rena Ware for the purpose of becoming an Independent Representative of the Company. 45

37. RECRUITER: The person who introduces another to Rena Ware. The Recruiter may qualify for Bonuses on sales made by the new Recruit. 38. REINSTATED : If you become Inactive, your Organization will permanently Roll-Up to the next qualified person in your upline. If you later want to rejoin Rena Ware, you can apply to be reinstated, however, you will need to start over and build a new Organization as your previous Organization cannot be regained. 39. OPPORTUNITY MEETING : A meeting or gathering for the purpose of introducing and explaining the Rena Ware business opportunity to prospective recruits. 40. ROLL-UP: If do not maintain your Active status with the Company, or you or the Company terminates your agreement with Rena Ware, your entire Organization will permanently Roll-Up to the next qualified person in your upline. 41. ACHIEVED TITLE: Your Achieved Title is based upon reaching levels of performance as defined in the Earnings Plan. Although you may hold the title of the highest level you achieve, you will be "Paid As" the level for which you qualify each Bonus Period. 42. COMMISSION VALUE (CV): The amount on which Commissions and earned Bonuses will be paid. All products have a Commission Value, which may be different from the retail price and Point Value. 43. POINT VALUE (PV): The amount of points associated with the sale of a product that is used to determine your PPV and your GPV. Points are used for qualification for promotions and to determine Bonuses. 44. "SHIPPED" SALE: A sale is considered to be a "Shipped" sale when it meets the criteria for you to be paid Bonuses on that sale. Criteria may vary by country. Refer to the definition provided under How You Receive your Earnings in this manual. 45. PAID ON VOLUME (POV ): Paid On Volume is the total Point Value of all sales on which a person is paid any Commissions or Bonuses. It does not include the Commission value related to Infinity Pool payments. 46. TOTAL ORGANIZATIONAL VOLUME (TOV): The total PV of all products sold by you or anyone below you in your organization through unlimited levels. 46

CELEBRATE the RENA WARE DIFFERENCE Now that you have joined Rena Ware and are ready to start developing your own business, it is important for you to understand and apply the tools and programs outlined in this Business Guide. They will help you to maximize the power of the Earnings Plan and guide you in the most effective way to manage your business. RW950 U.S. 1950.U1.0318 Home Office U.S.A. (425) 881.6171 2018 R.W.I.