Purpose for the “Product Buy-Back” rule.

When a distributor plays games, he/she normally orders products by the cases. He/she also returns the products by the cases when he/she wants to terminate his/ her distributorship when things do not work out or just wants his/her money back. Normally, this distributor does not have a solid organization.

Experience have taught us that distributors who overload products are normally encouraged to do so by their upline(s) because the upline(s) want to qualify for some benefit(s). In all cases, even if the upline(s) did not encourage this activity, they know about it. It is the responsibility of all distributors who have downlines to do MLM properly, to work within the laws of local government and to guide their downlines. We do not want people to play games in this Company. Please get the message or the Upline(s) will be held accountable.

The “Product Buy Back Rules” (Product Return) is designed for the following reasons:

Each sponsor is obliged to ensure sponsored downline distributor purchases and orders products prudently. We do not want inventory loading or game playing.

All distributors shall order products in a quantity based on his/her actual need. As recommended, distributors are encouraged to purchase additional products only after 70% of the initial inventory has been sold or otherwise disposed. This is our 30/70% rule.

In the event that the downline distributor insists to purchase products in quantities exceeding normal volumes, the sponsor shall try his/her best efforts to persuade the distributor to cease the activities. Failing this, the sponsor must inform DLC, and all upline managers and distributors in this line, in writing within thirty (30) days of such activities. This will release him/her of all responsibilities. All uplines in turn must take similar action to release them of responsibility.

Failing to do the above, every sponsor must offer to buy back from any of his/her distributor who wishes to discontinue their business any unused and currently marketable products. Plea of ignorance is no defense and will not be entertained.

The responsibility to buy-back the products passes up the line of sponsorship from distributor to distributor up to all managers in this line. If the sponsor fails or refuses to buy-back the products, this responsibility goes up to his sponsor until someone in the line assumes responsibility. In the event no one assumes this responsibility, DLC will buy them back according to the Buy-Back Policy.

Uplines who are members of the Profit Sharing Bonus or President Award will lose their Profit Sharing bonus for one qualified year and all, or a portion, of their PAP at the discretion of the Executive Committee. There is no reason why a Profit Sharing Manager or a President’s Awardee, who encourage game playing or are not aware of game playing by members of their organization, to remain a Profit Sharing Manager or a President’s Awardee or go unpunished. Uplines who are not yet members of the Profit Sharing Bonus or President’s Award cannot qualify for these awards in the future. We hope all distributors know and can feel that DLC does not really want distributors who play games to remain in the Company.

The whole organization of the departing distributor will go to the distributor who assumes the responsibility for buying back the saleable inventory from the departing distributor.

This “BUY BACK” rule will strictly be enforced.