Policies & Procedures

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SECTION 1: CODE OF ETHICS

TRU International Inc. (hereafter “TRU” or the “Company”) has made a commitment to provide the finest direct sales experience backed by impeccable service to its, TRU Customers/Members, Partners. In turn, the Company expects Partners to reflect that image in their relationships with Customers/Members and fellow Partners.

As a Partner, you are expected to operate your business in the highest standards of integrity and fair practice in your role as a Partner. Failure to comply with the Code of Ethics can result in your termination as a Partner.

The Code of Ethics, therefore, states:

As an Independent Partner:

1. I will conduct my business in an honest and ethical manner at all times.

2. I will make no representations about the income benefits of being a Partner with TRU or the benefits of the TRU products, other than those contained in officially-approved company literature, sales aids, videos, social media pages, and information on company calls, at company events, on company websites and leadership trips.

3. I will provide support and encouragement to my Customers/Members and other Partners to ensure that their experience with TRU is conducted in a pleasant, no hype, no pressure environment.

4. I will motivate and actively work with Partners in my business organization to help them build their TRU business. I understand that this support is critical to each Partner’s success and will strive my best to provide this for them.

5. I will refrain from making income claims, exaggerating my personal income or the income potential in general and will stress to Partner candidates the level of effort and commitment required.

6. I will not abuse the goodwill of my association with TRU to further or promote other business interests (particularly those which may be competitive to TRU), without the prior written consent of TRU. TRU encourages entrepreneurialism, however, it is not permitted to attempt to “cross recruit” for any reason, any other Customers/Members, or Partners, that has not personally enrolled in TRU. Partner(s) understands that such practices are detrimental to other Partners and can be subject to suspension or termination of their Partner Agreement.

7. I will not make disparaging remarks about other products, services, TRU Customers/Members and Partners, Vendors or companies; likewise, I will not willfully denigrate the activities or personalities of fellow TRU Partners.

8. I will abide by all the Policies and Procedures of TRU as included herein, or as may be amended from time to time.

9. I will not make any payment(s) or promise to pay any prospective or existing Partner(s) in return for such Partner(s) enrollment, continued enrollment, or team building or recruiting activities with TRU.

SECTION 2: INTRODUCTION

2.1 - Policies and Compensation Plan Incorporated into Partner Agreement

These Policies and Procedures, in their present form and as amended at the sole discretion of TRU, are incorporated into, and form an integral part of the Partner Agreement. Throughout these Policies and Procedures, when the term “Agreement” is used, it collectively refers to the Partner Application and Agreement Form, these Policies and Procedures and the TRU Earnings Program. These documents are incorporated by reference into the Partner Agreement (all in their current form and as may be amended by TRU).

2.2 - Purpose of Policies

TRU is a direct sales company that markets products and services through Independent Partners. Independent Partners have the ability, to receive commissions and bonuses by selling TRU products (see TRU Earnings Program). It is important to understand that your success and the success of your Partners depends on the integrity of those who market our services. To clearly define the relationship that exists between Partners and TRU, and to explicitly set a standard for acceptable business conduct, TRU has established the Agreement. TRU Partner(s) are required to comply with the provisions set forth in the Agreement, which TRU may amend at its sole discretion from time to time, as well as with all federal, state and local laws governing their TRU business and their conduct. Because you may be unfamiliar with many of these standards of practice, it is very important that you read and abide by the Agreement. Please review the information in this document carefully. It explains and governs the relationship between you, as an independent contractor, and the Company. If you have any questions regarding any policy or rule, do not hesitate to seek an answer from the TRU corporate office.

2.3 - Changes to the Agreement

Because laws and the business environment periodically change, TRU reserves the right to amend the Agreement, the products offered, the TRU Earnings Program, and the prices at the Company’s sole and absolute discretion. By signing the Partner Agreement, a Partner agrees to abide by all amendments or modifications that TRU elects to make.

Amendments shall be effective 30 days after publication of notice of amendments in official TRU materials. The Company shall provide or make available to all Partners a complete copy of the amended provisions by one or more of the following methods:

(a) posting on the Company’s official website;

(b) electronic mail (email);

(c) inclusion in Company periodicals;

(d) inclusion with commissions or bonus checks; or

(e) special mailings. The continuation of a Partner’s TRU business or a Partner’s acceptance of bonuses or commissions constitutes acceptance of all amendments.

2.4 - Delays

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

2.5 - Policies and Provisions Severable

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

2.6 - Waiver

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

SECTION 3 - BECOMING A PARTNER

3.1 - Requirements to Become a TRU Member or Partner

To become a Member or Partner (Distributor), each applicant must:

3.1.1 - Be at least 18 years of age; or have written permission and signature agreement on the Partner application agreement of their parent or legal guardian;

3.1.2 - Reside in the 50 United States, Canada, or other jurisdictions officially opened by the Company;

3.1.3 - Have a valid Social Security, Social Insurance or Tax ID number;

3.1.4 - Submit an accepted Partner Application and Agreement, and or register online and accept these policies and Procedures; and The Company reserves the right to reject any applications for a new Partner or applications for renewal. No product purchase is required to become a new TRU Member or Partner. However, Partners will be required to purchase an at-cost annual Partner membership.

3.2 - Partner Benefits

Once the Partner Application and Agreement have been accepted by TRU, the following benefits are available to the new Partner (Partner):

1. Members purchase at discounts of 20-35% off retail, Partners purchase at TRU wholesale, market and sell TRU products and services for profit. Access to Partner only benefits and services;

2. Participate in the TRU Rewards Plan (receive points, bonuses and commissions, if eligible);

3. Sponsor other individuals as Partners and Members into the TRU business and thereby, build a marketing organization and progress through TRU Earnings Program and earn bonuses and awards;

4. Receive periodic TRU literature and other TRU communications, promotions and special offers;

5. Participate in TRU-sponsored events, support, service, training, motivational and recognition functions, conference calls and webinars upon payment of appropriate charges, if applicable; and

6. Participate in promotional incentives and programs sponsored by TRU for its Partners.

SECTION 4 - OPERATING A TRU BUSINESS

4.1 - Adherence to the TRU Earnings Program

Partner(s) must adhere to the terms of the TRU Earnings Program as set forth in official TRU literature. Partner(s) shall not offer the TRU opportunity through, or in combination with, any other system, program or method of marketing other than that specifically set forth in official TRU literature. Partner(s) shall not require or encourage other current or prospective Customers/Members or Partners to participate in TRU in any manner that varies from the program as set forth in official TRU literature. Partner(s) shall not require or encourage other current or prospective Customers/Members or Partners to execute any agreement or contract other than official TRU agreements and contracts in order to become a Partner. Similarly, Partner(s) shall not require or encourage other current or prospective Customers/Members or Partners to make any purchase from, or payment to, any individual or other entity to participate in the TRU Earnings Program, other than those purchases or payments identified as recommended or required in official TRU literature.

4.2 - Bonus Buying Prohibited

Bonus buying is strictly and absolutely prohibited. “Bonus buying” includes:

a. the enrollment of individuals without their knowledge and agreement and/or without execution of a Partner Application;

b. the fraudulent enrollment of a Member or a Partner;

c. the enrollment or attempted enrollment of non-existent individuals as Partner;

d. the use of a credit card by or on behalf of a Customer/Member or Partner when the Customer/Member or Partner is not the account holder of such credit card;

e. purchasing TRU products on behalf of another Customer/Member, or Partner, or under another Customer/Member’s or Partner’s ID number, without their knowledge and consent, strictly to qualify them for commissions, points, incentives, rank advancements, recognition, titles, contests, event qualifications, promos, free products, trips or bonuses.

4.3 - Business Entities

A Business, LLC or Corporation may hold a Partner business upon completion of the Partner Application form, and providing on that form in the appropriate space, a Federal tax ID number. However, an individual may not participate in or have any beneficial interest in more than one (1) Partner business of any kind. The person signing the application on behalf of a business entity must have the authority of said entity to enter into the transaction. In addition, by signing for as a business entity, you certify that no person with an interest of debt or equity in the business has had an interest in a Partner business with TRU within six (6) months of the date of signature.

4.4 - Changes to a TRU Business

4.4.1 - General

Each Partner must immediately notify TRU of all changes to the information contained in his or her Partner Application and Agreement. Partner may modify their existing Partner Agreement Form by submitting a written request and appropriate supporting documentation.

4.4.2 - Change of Sponsor

To protect the integrity of all marketing organizations and safeguard the hard work of all Partners, TRU does not allow changes in sponsorship for active Partners. Maintaining the integrity of sponsorship is critical for the success of every Partner and marketing organization. Accordingly, the transfer of a TRU business from one sponsor to another is not permitted.

Exception: A request for a change in sponsor, due to TRU error, will be accepted within 30 days of the submission of the new Partner application.

4.4.3 - Cancellation and Re-application

A Partner may legitimately change organizations by:

Voluntarily canceling his or her Partner Agreement and remaining inactive (i.e., no purchases of TRU products; no sales of TRU products; no sponsoring; no attendance at any TRU functions, no participation in any other form of Partner activity, and no operation of any other TRU business) for 6 full calendar months.

Following the six (6) month waiting period of inactivity, the former Partner may reapply under a new sponsor. However, the former Partner will permanently lose any, and all right to their former Partner business organization. “Business” shall mean the organization of Independent Partner that enroll and are placed under any Independent Partner.

4.5 - Unauthorized Claims and Actions

4.5.1 - Indemnification

A Partner is fully responsible for his or her, verbal and written statements made regarding TRU products, services, and the TRU Earnings Program that are not expressly contained in official TRU materials. Partners agree to indemnify TRU and TRU’s directors, officers, employees and agents and hold them harmless, from all, liability, including judgments, civil penalties, refunds, attorney fees, court costs or lost business incurred by TRU as a result of the Partner’s unauthorized representations or actions. This provision shall survive the termination of the Partner Agreement.

4.5.2 - Income Claims and Marketing

In their enthusiasm to enroll prospective Partners, some Partners are occasionally tempted to make income claims or earnings representations. This is counterproductive because new Partners may become disappointed very quickly if their results are not as extensive or as rapid as the results others have achieved.

Moreover, the Federal Trade Commission and the States have laws or regulations that regulate or even prohibit certain types of income claims and testimonials made by persons. While Partners may believe, it is beneficial to provide copies of checks, or to disclose their earnings or others, such approaches have legal consequences that can negatively impact TRU as well as the Partner making the claim unless appropriate disclosures required by law are also made contemporaneously with the income claim or earnings representation. Because Partners do not have the data necessary to comply with the legal requirements for making income claims, a Partner may NOT make income projections, income claims or disclose his or her TRU income (including the showing of checks, copies of checks, bank statements or tax records).

When promoting the products and the trumendous opportunity TRU offers, Partners must use only the sales tools and support materials produced by TRU. The Company has carefully designed its products, product labels, TRU Earnings Program and promotional materials to ensure that they are promoted in a fair, truthful manner; that they are substantiated and the material complies with the legal requirements of federal and state laws. Accordingly, Partners must not produce their own literature, advertisements, sales tools, promotional materials, Internet Web pages, blogs, and/or social media pages.

4.5.3 - Claims of Illegal Use

When promoting TRU products, Partner(s) shall not make any verbal or written statement regarding the use—or potential use—of TRU products for any illegal purpose. This includes, but is not limited to, statements regarding knowledge of the illegal use of TRU products by the Partner(s) or any third party, the compatibility of TRU products with any other product known to be used for illegal purposes, or the potential compatibility of TRU products with any other product known or unknown that would facilitate any practice prohibited by law. Partner(s) agree to indemnify TRU and TRU’s directors, officers, employees and agents and hold them harmless from any, and all, liability, including judgments, civil penalties, refunds, attorney fees, court costs or lost business incurred by TRU as a result of, any such statements made by the Partner(s).

4.6 - Conduct at TRU Corporate Events

4.6.1 - No Selling or Recruiting at TRU Events

Recruiting at official TRU corporate events is not permitted. These activities take away from the primary focus of the event, and can negatively reflect on the professional image of TRU as a company. You may, however, offer a business card and/or catalog and product information.

4.6.2 - No Selling or Recruiting for Other Companies at TRU Events

TRU Partner(s) shall not sell any products or recruit for any business during TRU events. This restriction most specifically applies to sales and recruitment efforts for any other direct sales or marketing program, regardless of the product category, including those that do not compete with TRU’s product line.

4.7 - Conflicts of Interest

4.7.1 - Competition Policy

TRU Partner(s) are free to participate in other direct sales businesses, business ventures or marketing opportunities (collectively “network marketing”), but discourage those which have products in the same generic category as TRU products and pose a direct conflict and cause confusion within organizations. Partner(s) may not display TRU products with any other products or services in a fashion that might in any way confuse or mislead a prospective TRU Customer/Member or Partner into believing there is a relationship between the TRU and non-TRU products or services.

4.7.2 - Non-solicitation

During the term of this Agreement, Partner(s) may not recruit any TRU Customers/Members or Partners, other than, those whom they personally sponsored, for any other business opportunity. Following the cancellation of this Agreement for any reason, and for a period of one year thereafter, a former Partner may not recruit any TRU Customers/Members or Partners for another business opportunity, with exception of, a Partner who is personally sponsored by the former Partner. The Partner and Company recognize that many business opportunities is conducted through a network of independent contractors dispersed across the entire United States, and business is commonly conducted via the Internet and telephone, an effort to narrowly limit the geographic scope of this non-solicitation provision would render it wholly ineffective. Therefore, the Partner and Company agree that this non-solicitation provision shall apply to all markets in which TRU conducts business.

The term “recruit” means actual or attempted solicitation, enrollment, encouragement or effort to influence in any other way, either directly or through a third party, another Customer/Member or Partner to enroll or participate in another direct sales businesses, business ventures or marketing opportunities.

4.7.3 - Business Activity (Genealogy) Reports

Business Activity Reports made available for Partner access and viewing through TRU’s official website are considered confidential. Partner access to their Business Activity Reports is password protected. All Business Activity Reports and the information contained therein are confidential and constitute proprietary information and business trade secrets belonging to TRU. Business Activity Reports are provided to Partners in the strictest of confidence and are made available to Partners for the sole purpose of assisting Partners in working with their respective business organizations in the development of their TRU business. Partners should use their Business Activity Reports to assist, motivate and train their Business Partners. The Partner(s) and TRU agree that, but for this agreement of confidentiality and nondisclosure, TRU would not provide Business Activity Reports to any Partner but the owner of the Partner agreement. A Partner(s) shall not, on his or her own behalf, or on behalf of any other person, Partner, association, corporation or other entity:

1. Directly or indirectly disclose any information contained in any Business Activity Report to any third party;

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

3. Use the information to compete with TRU or for any purpose other than promoting his or her TRU business;

4. Recruit or solicit any Customer/Member or Partner of TRU listed on any report or in any manner attempt to influence or induce any Customer/Member or Partner of TRU to alter their business relationship with TRU;

5. Use or disclose to any person, Partner, association, corporation or other entity any information contained in any Business Activity Report.

6. Upon demand by the Company, any current or former Partner will return the original and all copies of Business Activity Reports to the Company upon demand and without delay comply.

4.8 - Cross-Sponsoring

Actual or attempted cross-sponsoring is strictly prohibited. “Cross-sponsoring” is defined as the enrollment of an individual or entity that is already a current Customer/Member or Partner of TRU, or who has had such an agreement within the preceding 6 calendar months, within a different line of sponsorship. The use of a spouse or relative’s name, a straw man, trade names, assumed names or fictitious ID numbers to circumvent this policy is prohibited. Partner(s) shall not demean, discredit or defame other TRU Partner(s) in an attempt to entice another Partner(s) to become part of the first Partner’s marketing organization. If a prohibited organization transfer occurs, TRU shall take disciplinary action against the Partner who engaged, acquiesced and/or knowingly participated in the improper cross- sponsoring. However, it shall be entirely within TRU’s discretion where in the genealogical structure, the cross- sponsored organization in question shall be placed or otherwise distributed.

Because equities often exist in favor of both business organizations, PARTNER(s) WAIVE, ANY AND ALL, CLAIMS AND CAUSES OF ACTION AGAINST THE COMPANY FOR ITS DECISION REGARDING THE FINAL DISPOSITION OR PLACEMENT OF THE CROSS-SPONSORED ORGANIZATION.

4.9 - Errors or Questions

If a Partner has questions about or believes any errors have been made regarding commissions, bonuses, Business Activity Reports, or charges, the Partner(s) must notify the Partner Support Department at support (at) partnerwithtru.com, in writing, within 15 days of the date of the purported error or incident in question. TRU will not be responsible for any errors, omissions or problems not reported to the Company within 15 days.

4.10 - Sales Aids Optional

Partner(s) are not required to purchase or carry sales aids. Partner(s) who do so must make his or her own decision with regard to these matters. Absolutely no use of the TRU name may be used on marketing materials, including any social media such as Facebook or InstaGram. To ensure that Partner(s) are not encumbered with Company Sales Aids, such Sales Aids may be returned to TRU upon the Partner’s cancellation pursuant to the terms of Section 8.2.

4.11 - Governmental Approval or Endorsement

No federal or state regulatory agencies or officials approve or endorse any direct selling program. Therefore, Partner(s) shall not represent or imply that TRU or its TRU Earnings Program have been “approved,” “endorsed” or otherwise sanctioned by any government agency.

4.12 - Holding Applications or Enrollments

Partner(s) must not manipulate enrollments of new Partner or customer orders. All Partner Applications and Agreements must be sent within 72 hours from the time they are signed by a Partner. Partner(s), can however place them in holding tank within the system.

4.13 - Identification

All Partner are required to provide their Social Security Number or Federal Tax Identification Number to TRU on the Partner Application and Agreement.

Upon enrollment, the Company will provide a unique Partner Identification Number to the Partner by which he or she will be identified. This number will be used to place orders and track commissions and bonuses.

4.14 - Income Taxes

Each Partner is responsible for paying local, state and federal taxes on any income generated as a Partner. Every year, TRU will provide IRS Form 1099 (non-employee compensation) earnings statement to each U.S. resident who (a) had earnings of over $600 in the previous calendar year or (b) made purchases during the previous calendar year, in excess, of $5,000 wholesale.

4.15 - Independent Contractor Status

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

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

Partner’s Name
Independent Partner

All Partners may list themselves as an “Independent Partner” in the residential telephone directory (“white pages”) under their own name. Partner(s) may not place telephone directory display ads in the classified directory (“Yellow Pages”) using TRU’s name or logo.

Partner(s) may not answer the telephone by saying “TRU” or in any other manner that would lead the caller to believe that he or she has reached the corporate offices of the Company. Advertising is not limited to print media; it also includes internet advertising and other forms of advertising. It is prohibited for a Partner(s) to use an internet or email address that utilizes the trade name TRU, or includes TRU in a portion of the address. It is also prohibited for a Partner(s) to use any website materials on a website that references or relates to TRU that is not authorized in writing by TRU. It is also prohibited for a Partner(s) to place links to unauthorized websites or web pages onto a website or webpage that has been authorized by TRU.

4.16 - Insurance

4.16.1 - Business Pursuits Coverage

You may wish to arrange insurance coverage for your business. Your homeowner’s insurance policy may not cover business related injuries or the theft of or damage to your business. Contact your insurance agent to make sure that your business property is protected.

4.17 - International Marketing

Because of critical legal and tax considerations, TRU must limit the marketing and enrollment of TRU services and the presentation of the TRU business to prospective Customers/Members and Partners located within the 50 United States of America, all of Canada and any other jurisdiction officially opened by TRU. Partner(s) are only authorized to do business in the countries in which TRU has announced are open for business in official Company literature.

4.18 - Laws and Ordinances

Partner(s) shall comply with all federal, state and local laws and regulations in the conduct of their businesses. Many cities and counties have laws regulating certain home-based businesses. In most cases these ordinances are not applicable to Partner(s) because of the nature of their business. However, Partner(s) must obey those laws that do apply to them. If a city or county official tells a Partner that an ordinance applies to him or her, the Partner shall comply with the law.

4.19 - Minors

Partner(s) shall not enroll or recruit individuals under the age of 18 into the TRU program.

4.20 - Actions of Household Members or Affiliated Individuals.

If any member of a Partner’s household, family, or other affiliated individual engages in any activity that, if performed by the Partner, would violate any provision of the Agreement, such activity will be deemed a violation by the Partner and TRU may take disciplinary action pursuant to the Statement of Policies against the Partner.

4.21 - One TRU Business Per Partner and Household Restrictions

A Partner may operate or have an ownership interest in only one TRU business. No individual may have, operate or receive compensation from more than one TRU business. Individuals of the same family unit, may enter or have an interest in, more than one TRU Business provided a one family member acts as the direct owner of one Member or Partner Agreement. A “family unit” is defined as spouses, domestic partner and dependent children living at or doing business at the same address. An exception to the one-business-per-Partner rule will be considered on a case-by-case basis if two existing Partner marry. Requests for exceptions to this policy must be submitted in writing to the Compliance Department.

4.22 - Seventy Percent (70%) Rule

TRU will strictly adhere to the policy that prior to honoring an order for product by a Partner, the Partner must certify that he/she has sold at retail at least 70% of all prior inventory purchased. A Partner will be allowed to purchase a reasonable amount of product for personal use.

The Company will monitor compliance with this rule, and any fraudulent information supplied or fraudulent certifications provided by the Partner will be grounds for termination. For this reason, it is important that the Partner keep accurate sales records.

It is Company policy to strictly prohibit the purchase of products in unreasonable amounts, solely for the purpose, of qualifying for commissions or advancement within the TRU Earnings Program. All such forms of front-end loading or stockpiling are strictly prohibited.

4.23 - Requests for Records

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

4.24 - Sale, Transfer or Assignment of TRU Business

4.24.1 – Although a TRU business is a privately owned, independently operated business, the sale, transfer or assignment of a TRU business, and the sale, transfer or assignment of an interest in a Business Entity that owns or operates a TRU business, is subject to certain limitations. If a Partner wishes to sell his or her TRU business, or interest in a Business Entity that owns or operates a TRU business, the following criteria must be met:

1. The selling Partner allows TRU the right to a due diligence period of 15 days to approve said sale or transfer. It is TRU’s intention to allow a legitimate sale or transfer, however, if due diligence proves a legal obstacle of sale or transfer, TRU will have the first right to purchase the business on the same terms as agreed upon with a third-party buyer or agreed upon terms from seller. TRU shall have fifteen (30) days from the date of receipt of the written offer from the seller to exercise its right of refusal.

2. The buyer or transferee must become a qualified Partner. If the buyer is an active Partner, he or she must first terminate his or her TRU business and however the six (6) calendar month waiting period may be waived before acquiring any interest in the new TRU business;

3. Before the sale, transfer or assignment can be finalized and approved by TRU, any debt obligations the selling party has with TRU must be satisfied.

4. The selling party must be in good standing, active and not in violation of any of the terms of the Agreement and must hold a legitimate offer to buy to be eligible to sell, transfer or assign a Partner business.

Prior to selling a Business Entity interest, the selling party must notify TRU’s Compliance Department in writing and advise of his or her intent to sell TRU’s business or Business Entity interest. The selling party must also receive written approval from the Compliance Department before proceeding with the sale.

4.25 - Separation of a Partner Business

In the event of a dissolution of marriage of a Partner, and a spouse, arrangements must be made to assure that any division of the business assets is accomplished so as not to adversely affect the interests and income of others in the business organization. If the separating parties fail to provide for the best interests of other Partner and the Company, TRU may be forced to involuntarily terminate the Partner Agreement.

4.25.1 - During the pendency of a divorce or dissolution, the Company shall treat the business according to status quo as existed prior to the filing of the divorce or dissolution.

Under no circumstances will the Business Organization of divorcing spouses be divided. Similarly, under no circumstances will TRU split commission and bonus checks between divorcing spouses. TRU will recognize only one Business Organization and will issue only one commission payment per TRU business per commission cycle. Commissions shall always be issued to the individual whose name appears on the Partner Agreement.

4.26 - Sponsoring

All active Partner(s) in good standing have the right to sponsor and enroll others into TRU. Each prospective Partner(s) has the ultimate right to choose his or her own sponsor. If two Partners claim to be the sponsor of the same new Partner, the Company shall regard the first application received by the Company as controlling.

4.27 - Stacking

“Stacking” is strictly prohibited. The term “stacking” includes: (a) violating the one-business-per-person rule and/or (b) enrolling fictitious individuals or entities into the TRU Earnings Program, in an attempt, to manipulate the program.

4.28 - Telemarketing

The Federal Trade Commission and the Federal Communications Commission each have laws that restrict telemarketing practices. You must comply to these laws.

Both federal agencies, as well as a number of states, have “do not call” regulations as part of their telemarketing laws. While you may not consider yourself a “telemarketer” in the traditional sense of the word, these regulations broadly define the term “telemarketer” and “telemarketing” so that your inadvertent action of calling someone whose telephone number is listed on the federal “do not call” registry could cause you to violate the law. Moreover, these regulations must not be taken lightly, as they carry significant penalties (up to $11,000.00 per violation).

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

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

2. The prospect’s personal inquiry or application regarding a product or service offered by the Partner within the 3 months immediately preceding the date of such a call.

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

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

5. In addition, Partner shall not use automatic telephone dialing systems relative to the operation of their TRU businesses. The term “automatic telephone dialing system” means equipment which has the capacity to (a) store or produce telephone numbers to be called using a random or sequential number generator and (b) to dial such numbers.

4.29 – Maintaining TRU Partnership

To purchase at exclusive Partner pricing and access TRU Partner benefits, a TRU Partner must pay their annual Partner renewal fee of $49.00 for Partner or $99.00 Premier Partner.  A TRU Partner must pay on or before their annual renewal (Anniversary) date to maintain their Partner status and continue to earn commissions and purchase at exclusive Partner price. If Partner does not purchase their renewal, TRU will downgrade their Partnership to a Member status, 30 days after their renewal date has passed.

4.30 - TRU Partner Convenience Order (Automatic Ordering)

This a great way to ensure your monthly order is processed on time, many Partners set up a convenience order or automatic ordering. TRU encourages convenience orders to be set up to run before the 27th of the month.

Since months end on different dates and could end on a non-business banking day, any convenience orders set up to run after the 27th, may process into the next month. If this happens the order will be credited for the month it is processed and TRU cannot be held liable for any loss of commissions and bonuses due to a non-order for the pay period.

SECTION 5 - RESPONSIBILITIES OF PARTNER

5.1 - Change of Address or Telephone

To ensure timely delivery of products, support materials and commissions, it is critically important that TRU’s files are current. Partner(s) planning to move should email TRU corporate office, at support (at) partnerwithtru.com, or change the information from their back office and change their new address and telephone numbers. To guarantee proper delivery, two-weeks advanced notice to TRU is recommended on all changes.

5.2 - Continuing Development Obligations

5.2.1 - Ongoing Training

Any Partner who sponsors another Partner into TRU must perform a bona fide assistance and training function to ensure that his or her Business is properly operating his or her TRU business. Partner(s) must have ongoing contact and communication with the Partner(s) in their Business Organizations. Examples of such contact and communication may include, but are not limited to, newsletters, written correspondence, personal meetings, telephone contact, voice mail, electronic mail and the accompaniment of Partner(s) to TRU meetings, training sessions, and other functions. Business Partner(s) are also responsible to motivate and train new Partner(s) in TRU product knowledge, effective sales techniques, the TRU Earnings Program Program and compliance with Company Policies and Procedures. Communication with and the training of Business Partner(s) must not, however, violate Section 4.5.2 (regarding the development of Partner-produced sales aids and promotional materials). Partner(s) cannot charge for training.

Upon request, every Partner should be able to provide documented evidence to TRU of his or her ongoing fulfillment of the responsibilities of a sponsor.

5.2.2 - Increased Training Responsibilities

As Partner progress through the various levels of leadership, they will become more experienced in sales techniques, product knowledge and understanding of the TRU program. They will be called upon to share this knowledge with lesser-experienced Partner(s) within their organization.

5.2.3 - Ongoing Sales Responsibilities

Regardless of their level of achievement, Partner(s) have an ongoing obligation to continue to personally promote sales through the generation of new Customers/Members or Partners and through servicing their existing Customers/Members or Partners.

5.3 - Non-disparagement

TRU wants to provide its Partner(s) with the best products, compensation plan and service in the industry. Accordingly, we value your constructive criticisms and comments. All such comments should be submitted in writing to the TRU corporate offices. While TRU welcomes constructive input, negative comments and remarks made in the field by Partner(s) about the Company, its products or TRU Earnings Program serve no purpose other than to sour the enthusiasm of other TRU Partners. For this reason, and to set the proper example for their organization, Partner(s) must not disparage, demean or make negative remarks about TRU, other TRU Members or Partners, TRU’s services, the TRU Earnings Program Program or TRU’s directors, officers or employees.

5.4 - Providing Documentation to Applicants

Partner(s) must provide the most current version of the Policies and Procedures and the TRU Earnings Program Programs to individuals whom they are sponsoring to become Partner before the applicant signs a Partner Agreement. Additional copies of Policies and Procedures can be found on the TRU Back Office website, or in your business center under the forms section.

5.5 - Reporting Policy Violations

Partner’s observing a policy violation by another Partner should submit a written report of the violation directly to the attention of the TRU Compliance Department by emailing support (at) partnerwithtru.com details of the incident(s), such as dates, number of occurrences, persons involved and any supporting documentation, should be included in the report.

SECTION 6 - SALES REQUIREMENTS

6.1 - Product Sales

The TRU Earnings Program is based upon the sale of TRU products to end user consumers. Partner(s) must fulfill personal and business organization sales requirements (as well as meet other responsibilities set forth in the Agreement) to be eligible for bonuses, commissions and advancement to higher levels of achievement.

6.2 - Sales of TRU products

Sales through on-line classifieds or auction sites, such as eBay or CraigsList, are prohibited, without the expressed written consent of TRU.

6.3 - Territory Restrictions

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

SECTION 7 - BONUSES AND COMMISSIONS

7.1 - Bonus and Commission Qualifications

A Partner must be active and in compliance with the Agreement and these policies to qualify for bonuses and commissions. So long as a Partner complies with the terms of the Agreement and these policies, TRU shall pay commissions to such Partner in accordance with the TRU Earnings Program. The minimum amount for which TRU will issue a commission payment to a Member is $10.00. The minimum for a Partner and open a TRU WALLET is $25.00. If a Partner’s bonuses and commissions do not equal or exceed $25.00, the Company will accrue the commissions and bonuses until they total $25.00. Commissions will be issued once $25.00 has been accrued via TRU wallet. Partners understand and agree that any commissions or bonuses paid via direct deposit, there is a ($3.00) service fee that will be deducted from each and every deposit processed.

7.2 - Commission Payments and Promotions

7.2.1 - Payments, Calculations, and Bonuses

Commissions will be sent out in accordance with the TRU Earnings Program. Commissions will be calculated according to the level for which a Partner actually satisfied all of the requirements according to the program rather than the highest rank or title achieved. Commission reports will be provided to Partner on-line, via web access.

7.2.2 - Promotions

Promotions are determined based on business organization and sales activity for each applicable period.

7.3 - Adjustment to Bonuses and Commissions

7.3.1 - Adjustments for Returned Products

Partners receive bonuses and commissions based on the actual Sales Volumes on products and services sold via retail, purchased from other Partners in your organization, and bulk orders. When a product is sent back or service canceled and refund is authorized by the Company, the bonuses and commissions attributable to the refunded goods or services, will be deducted in the month in which the refund is given, and continuing every pay period thereafter until the commission is recovered from the Partner who received bonuses and commissions on the sales of the refunded products or service(s).

7.4 - Unclaimed Commissions and Credits

7.4.1 - Partner(s) must deposit or cash commission and bonus checks within six months from their date of issuance. A check that remains uncashed after six months will be void. There shall be a $25.00 charge for reissuing a check. These charges shall be deducted from the balance owed to the Partner.

7.5 - Reports

All information provided by TRU in online or telephonic Business Activity Reports, including but not limited to personal and group sales volume (or any part thereof), and Business sponsoring activity is believed to be accurate and reliable. Nevertheless, due to various factors, including the inherent possibility of human and mechanical error; the accuracy, completeness and timeliness of orders; denial of credit card and electronic check payments; returned products; and credit card and electronic check charge-backs, the information is not guaranteed by TRU or any persons creating or transmitting the information. All personal and group sales volume information is provided “as is” without warranties, expressed or implied, or representations of any kind whatsoever. In particular but without limitation, there shall be no warranties of merchantability, fitness for a particular use or non-infringement.

To the fullest extent permissible under applicable law, TRU and/or other persons creating or transmitting the information will in no event be liable to any Partner(s) 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 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 TRU or other persons creating or transmitting the information shall have been advised of the possibility of such damages. To the fullest extent permitted by law, TRU 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.

It is TRU’s mission to always provide the most accurate reporting to its Partner(s). Access to and use of TRU’s online reporting services and your reliance upon such information is at your own risk. All such information is provided to you “as is.” If you are dissatisfied with the accuracy or quality of the information, your sole and exclusive remedy is to discontinue use of and access to TRU’s online reporting services and your reliance upon the information.

SECTION 8 - RETURNS AND SALES AIDS REPURCHASE

8.1 - Retail Sales and Customer Returns

Retail sales to the customer are the foundation of the TRU business. The entire commission structure is based upon volume of wholesale and retail sales referred by the individual Partner as well as their entire organization.

TRU offers all customers a 100 percent money back guarantee on product purchases. If, for any reason, a customer is dissatisfied with any TRU product, the customer may return unused and resalable product for a replacement or full refund within 15 days of purchase. Shipping costs are not refundable. Refunds will be issued within thirty (30) days of receipt of returned goods.

NOTE: If a Partner returns more than $500.00 in products in any twelve (12) consecutive month period, it shall constitute the Partner’s request to cancel his or her Partner Agreement, and the return shall be treated as an inventory return pursuant to Section 8.2.

8.2 - Inventory and Sales Aids Repurchase

Members and Partner may cancel the Agreement within three (3) days of execution and receive a full refund of all Partner fees and any voluntary inventory or sales aids purchases.

After the three (3) day rescission period, a Member or Partner may still cancel the Agreement and the Partner may return any inventory for a refund. Partner may only return inventory that he or she personally purchased from TRU (purchases from other Partner or third parties are not subject to refund). Any returned inventory must be in unused, resalable condition. Products are only available for a refund if the item(s) were purchased by the Partner up to 120 days to the date of cancellation. Upon Company’s receipt of resalable inventory, the Partner will be reimbursed 90 percent (90%) of the net cost of the original purchase price(s). Shipping charges are not refundable. If the purchases were made through a credit card, the refund will be credited back to the same account.

NOTE: Inventory that has been certified as sold by the Partner pursuant to the 70% Rule is NOT subject to any refund.

For purposes of reimbursing Partner who have canceled the Agreement, the purchase of one (1) TRU product shall be considered for personal use and shall be subject to the requirements outlined above in Section 8.1. Purchases in excess of one (1) TRU product shall be considered inventory.

A Montana resident may cancel his or her Partner Agreement within fifteen (15) days from the date of enrollment, and may return his or her inventory for a full refund within such time period.

All inventory to be returned for refund under these provisions must be approved in advance of shipment to TRU by submitting a ticket at support.partnerwithtru.com.

SECTION 9 - DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS

9.1 - Disciplinary Sanctions

Violation of the Agreement, these Policies and Procedures or any illegal, fraudulent, deceptive or unethical business conduct by a Partner may result, at TRU’s discretion, in one or more of the following corrective measures:

1. Issuance of a written warning with a reply explanation within 10 days from Partner for further diligence.

2. Requiring the Partner to take immediate corrective measures and proof that issue is corrected or being corrected.

3. Imposition of a fine, remuneration which may be withheld from bonus and commission checks, trips, incentives;

4. Loss of rights to one or more bonus, incentives, trips, rank advancements or promotions and commission checks;

5. The withholding from a Partner of all or part of the Partner’s bonuses and commissions during the period that TRU is investigating any conduct allegedly in violation of the Agreement. If a Partner’s business is canceled for disciplinary reasons, the Partner will not be entitled to recover any commissions, bonuses, incentives, or points earned, trips awarded, bonus pool commissions, lifestyle or cash bonuses withheld during the investigation period.

6. Suspension of the Partner Agreement for one or more pay periods until investigation completed.

7. Involuntary termination of the offender’s Partner Agreement, commissions and all bonuses;

8. Any other measure expressly allowed within any provision of the Agreement or that TRU deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the Partner’s policy and or procedures violation or contractual breach; or

9. In situations deemed appropriate by TRU, the Company may institute legal proceedings for monetary and/or equitable relief of any, and all parties adversely effected from breach or violation.

9.2 - Grievances and Complaints

When a Partner has a grievance or complaint with another Partner regarding any practice or conduct in relationship to their respective TRU businesses, the complaining Partner should first report the problem to his or her sponsor, who should review the matter and try to resolve it with the other party’s Business sponsor. If the matter cannot be resolved, it must be reported in writing to the Company. The Company will review the facts and determine if a policy violation has occurred and take appropriate action.

9.3 - Arbitration

Any controversy or claim arising out of or relating to the Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association or other recognized arbitration service, under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Partner waive all rights to trial by jury or to any court. All arbitration proceedings shall be held in the County of Jackson, Missouri, unless the laws of the state in which a Partner resides expressly require the application of its laws, in which case the arbitration shall be held in the capital of that state. All parties shall be entitled to all discovery rights pursuant to the Federal Rules of Civil Procedure. There shall be one arbitrator, an attorney at law, who shall have expertise in business law transactions, with a strong preference being an attorney knowledgeable in the direct selling industry, selected from the panel that the American Arbitration Panel provides. The prevailing party shall be entitled to receive from the losing party, OR each party to the arbitration shall be responsible for its own, costs and expenses of arbitration, including legal and filing fees. The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to a judgment in any court of competent jurisdiction. This agreement to arbitration shall survive any termination or expiration of the Agreement.

Nothing in these Policies and Procedures shall prevent TRU 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 TRU’s interest prior to, during or following the filing of any arbitration or other proceeding or pending the rendition of a decision or award in connection with any arbitration or other proceeding.

9.4 - Governing Law, Jurisdiction and Venue

Jurisdiction and venue of any matter not subject to arbitration shall reside in Jackson County, State of Missouri. The Federal Arbitration Act shall govern all matters relating to arbitration. The law of the State of Missouri shall govern all other matters relating to or arising from the Agreement.

SECTION 10 - INACTIVITY AND CANCELLATION

10.1 - Effect of Cancellation

So long as a Partner remains active and complies with the terms of the Partner Agreement and these Policies and Procedures, TRU shall pay commissions to such Partner in accordance with the TRU Earnings Program. A Partner’s bonuses, commissions, trips, incentives constitute the entire consideration for the Partner’s efforts in generating sales and all activities related to generating sales (including building a Business Organization). Following a Partner’s termination for inactivity, or voluntary or involuntary termination of his or her Partner Agreement (these methods are collectively referred to as “termination”), the former Partner shall have no right, title, claim or interest to the marketing organization that he or she operated, or any commission or bonus from the sales generated by the organization. A Partner whose business is terminated will lose all rights as a Partner. This includes the right to sell TRU products and services and the right to receive future commissions, bonuses or other income resulting from the sales and other activities of the Partner’s former Business sales organization. In the event of termination, Partner agree to waive all rights they may have, including but not limited to property rights, to their former Business organization and to any bonuses, commissions or other remuneration derived from the sales and other activities of his or her former Business organization.

Following a Partner’s termination of his or her Partner Agreement, the former Partner shall not hold himself or herself out as a Partner. A Partner whose Partner Agreement is terminated shall receive commissions and bonuses only for the last full pay period he or she was active prior to cancellation (less any amounts withheld during an investigation preceding an involuntary termination).

10.2 - Involuntary Termination

A Partner’s violation of any of the terms of the Agreement, including any amendments that may be made by TRU in its sole discretion, may result in any of the sanctions listed above, including the involuntary termination of his or her Partner Agreement. Cancellation shall be effective on the date on which written notice is mailed, faxed or delivered to an express courier to the Partner’s last known address (or fax number), or to his or her attorney, or when the Partner receives actual notice of termination, whichever occurs first.

10.3 - Voluntary Termination

A Partner has a right to cancel, at any time, regardless of reason. Termination must be submitted in writing to the Company at its principal business address. The written notice must include the Partner’s signature, printed name, address and Partner ID number. Partner who have resigned may re-apply to become a Partner with TRU after 6 months. A Partner’s position is subject to termination due to inactivity (i.e., merchant enrollments, no commissions, no sponsoring; and no attendance at any TRU functions, participation in any other form of Partner activity, or operation of any other TRU business) after being inactive for 6 full calendar months.

10.4 - Non-Renewal

A Partner may also voluntarily cancel his or her Partner Agreement by failing to maintain the Agreement annually. If the Partner fails to make the annual renewal fee by their anniversary date, the Partner’s will have 90 days to reactivate their business center and keep the business organization intact. However, after 60 days of inactivity all accumulated volumes are purged.

10.5 - Complete Agreement

These Policies and Procedures, and all, modifications made by the Company, along with the Terms and Conditions and the TRU Earnings Program make up the entire agreement between Partner and Company.

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