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WATER-REVOLUTION, LLC FULL AND COMPLETE POLICIES AND PROCEDURES

Section 1 - Introduction

1.1 Policies Incorporated into the Independent Distributor's (ID) Agreement.

These Policies and Procedures, in their present form and as amended from time to time at Water-Revolution, LLC's discretion, are incorporated into the Water-Revolution, LLC ID Agreement. It is the responsibility of each ID to read, understand, adhere to, and ensure that he/she is aware of and operating under the most current version of these Policies and Procedures. The most current version of the Policies and Procedures will be posted on the company website for continuing review by each ID.

1.2 Purpose of Policies

In order to clearly define the relationship that exists between IDs and Water-Revolution, LLC, and to explicitly set a standard for acceptable business conduct, Water-Revolution, LLC has established the ID Application and Agreement, these Policies and Procedures, and the Water-Revolution, LLC Global Pay Plan (hereinafter referred to as the "ID Agreement"). More precisely, the ID Agreement sets forth the respective rights and responsibilities of Water-Revolution, LLC and the ID in the sale of products to IDs and their customers, and the activities relating to the enrollment and training of downline IDs. Additionally, to assist IDs in building their businesses, to protect those independent businesses, and to safeguard the opportunities that Water-Revolution, LLC offers to everyone, the ID Agreement establishes certain limits to ensure that IDs do not inadvertently step outside the bounds of permissible and proper conduct. Water-Revolution, LLC IDs are required to comply with all of the terms and conditions set forth in the ID Agreement, which Water-Revolution, LLC may amend from time to time, as well as all laws and regulations governing IDs' Distributorships and ID conduct. Water-Revolution, LLC honors all federal, state, provincial, territorial, and local laws and regulations governing good business practices and requires Water-Revolution, LLC IDs to do the same. Because you may be unfamiliar with many of these standards of practice, it is very important that you read and understand these Policies and Procedures. Please review the information in this manual carefully. It explains and governs the relationship between you as an Independent ID and the Company.

1.3 Changes to the ID Application and Agreement, Policies and Procedures, or Water-Revolution Independent Distributor Compensation Plan

Because federal, state, provincial, territorial, and local laws, as well as the business environment, periodically change, Water-Revolution, LLC reserves the right to amend the terms and conditions of the ID Agreement and its prices from time to time at its sole discretion.

By enrollment through the Online System or any acceptance of commissions, an ID agrees to abide and be legally bound by all amendments or modifications that Water-Revolution, LLC elects to make. Notification of amendments shall be published in official Water-Revolution, LLC materials and posted on the company website.

Amendments shall be effective upon posting of the changes on the company website, which is available to all active IDs. The continuation of an ID's Water-Revolution, LLC Distributor business or an ID's acceptance of bonuses or commissions constitutes acceptance of any and all amendments.

1.4 Delays

Water-Revolution, LLC shall not be responsible for delays and failures in performing its obligations when the Company cannot complete its obligations due to circumstances beyond the Company's reasonable control. This includes, without limitation, strikes, labor difficulties, riot, war, fire, death, curtailment of a party's source of product supply, late parts or product delivery, or government decrees or orders.

1.5 Policies and Provisions Severable

If any provision of the ID Agreement as it currently exists or as may be amended is found to be invalid, illegal, or unenforceable for any reason, only the invalid provision will be severed from the ID Agreement; the remaining terms and provisions shall remain in full force and effect and shall be construed as if such invalid, illegal or unenforceable provision never comprised a part of the ID Agreement.

1.6 Waiver

Water-Revolution, LLC never forfeits its right to insist on ID compliance with the ID Agreement or with the applicable laws and regulations governing business conduct. Water-Revolution, LLC's failure to exercise any right or power under the ID Agreement or to insist upon strict ID compliance with any obligation or provision thereof, shall not constitute a waiver of Water-Revolution, LLC's right to demand exact compliance with the ID Agreement. A waiver by Water-Revolution, LLC can be affected only in writing by an authorized officer of Water-Revolution, LLC. Water-Revolution, LLC's waiver of any particular default by an ID shall not affect or impair Water-Revolution, LLC's rights with respect to any subsequent default, nor shall it affect in any way the rights or obligations of any other ID. Nor shall any delay or omission by Water-Revolution, LLC to exercise any right arising from default affect or impair Water-Revolution, LLC's rights as to that or any subsequent default.

Section 2 - Distributor Manifesto

Our Network Marketing industry is built upon a volunteer force of Independent Distributors who build their businesses with their own assets and risks and the companies that shall endure and grow will do so, based on those Distributors continuing to choose to become and remain involved. We as a team, both Company and Distributors, commit to a framework that will create a stronger relationship under the following processes:

2.1 A Distributors Board of Representatives shall be created in January 2015 and thereafter at the beginning of every calendar year for the purpose of insuring that the IDs as a whole have proper representation in helping to guide the Company in matters which affect their livelihood. This Board shall consist of the top 4 highest earning, full-time Executive level IDs during the previous calendar year and 1 Company representative for a total of 5 members. Those IDs not wishing to assume the post shall have the right to appoint a permanent representative in their behalf from their downline organization. This appointee must be approved by the current board and be an active ID within the Water-Revolution, LLC system.

2.2 All decisions made by the company which materially affect the ID force as to product and compensation or the timely delivery thereof shall be formally discussed with the Distributors Board of Representatives prior to their implementation with every effort given to reach an equitable and profitable outcome for all.

2.3 IDs retain sole and complete ownership interests in their Distributors business and as such may sell or bequeath their Distributors business to anyone they choose and for any amount that the parties agree to. The business must first achieve a rank of Manager and earn a minimum of 15 Pay Points. The company must approve the sale in writing, this approval not to be unreasonably withheld. Full disclosure/request for approval of such sales will be made to the Water-Revolution, LLC Compliance Officer 15 days prior to the proposed transaction.

2.4 No ID shall be terminated with the Company or their commission payments withheld for any reason without a discussion with the Distributor Board of Representatives and input from the Compliance Team (a joint task force involving the Water-Revolution, LLC Compliance Officer and selected ID Board Members), subject to substantiated violations of policies contained in this Policies and Procedures. The Distributor Board of Representatives must within reason enforce in full and exercise appropriate punishments thereof according to the Policies and Procedures.

2.5 No Corporate Trainer, Field Trainer or company spokesperson outside of company owners ever shall be appointed over the field without discussion with the Distributor Board of Representatives.

Section 3 - Becoming an Independent Distributor (ID)

3.1 Requirements to Become an Independent Distributor and Dealer (ID).

To become a Water-Revolution, LLC ID, each applicant must:

a) Be of the age of majority in his/her state, province, or territory of residence;

b) Reside in the United States, a territory thereof, or any other geographic area that Water-Revolution, LLC has approved for business;

c) Have a valid U.S. Social Security, Federal Tax ID Number, Canadian Social Insurance Number or a valid Tax ID number/designation as issued by the government of any other country where Water-Revolution is officially conducting business;

d) Purchase a Water-Revolution, LLC ID Website Package and thoroughly review its contents;

e)Review and agree to be bound by the Water-Revolution, LLC Policies and Procedures; and

f) Submit a properly completed online enrollment form through the official website of their sponsor. The company reserves the right to reject any applications for new IDs or applications for reinstatement.

3.2 ID Online Website Package

No person is required to purchase Water-Revolution, LLC equipment or products to become an ID. To familiarize new IDs with Water-Revolution, LLC equipment, products, services, sales techniques, sales aids, and other matters, the company requires that new IDs purchase an official Website Package also referred to a WebStore. Because this unique Marketing and Training Platform comes together with 12 months worth of hosting services and company support services, the fee for the purchase of this platform will not be refunded for any reason.

The ID Website Package cost is not a service or franchise fee, but rather is solely to offset costs incurred by the company for website programming, annual hosting, ongoing updates, company-provided ID Support, informational materials and business tools which are provided for an ID to market Water-Revolution, LLC products and build a Water-Revolution, LLC business.

3.2.1 Email Correspondence

Water-Revolution, LLC operates as an Internet company; its primary means of communication with each ID is via email. Each ID is responsible to monitor his/her own online business. An ID who opts out of receiving Water-Revolution, LLC's email must be accountable for this action and hold Water-Revolution, LLC harmless for any loss due to the lack of communication.

3.2.2 Welcome Kit

Water-Revolution, LLC will mail to each ID a Water-Revolution Welcome Kit via USPS to the IDs postal shipping address on file. Water-Revolution is not responsible for any lost or misdirected mail. If needed, replacement Welcome Kits can be sent to an ID at a cost of $19.95, plus shipping.

3.3 Identification and Business Center (BC) Usernames

Water-Revolution, LLC requires IDs to provide their Social Security or Federal Taxpayer Identification Number upon enrollment through the Online System. Water-Revolution, LLC uses this number to identify IDs for tax purposes only.

A unique Business Center username is chosen by the enrollee and issued by the online website system at enrollment. These names are used to place orders and to track commissions and bonuses.

3.4 New ID Registration by the Online System

A Sponsor or the new ID applicant must use the Water-Revolution, LLC Online System to enroll and receive a BC username and to receive authorization for a new Distributor's business. The enrollee must provide the Online System with all the necessary ID Application and Agreement information. An ID will receive an official Water-Revolution Website Package immediately upon payment acceptance and approval. Water-Revolution, LLC will ship any new optional equipment or product ordered to the new ID. The new ID will have all the rights and privileges of a Water-Revolution ID for a period of 12 months upon which the ID may renew his/her Distributor business for the next 12 months and so on.

3.5 Minors

A person who is recognized as a minor in his/her place of residence may not be a Water-Revolution, LLC ID.  There may be possible exceptions to this rule, subject to local law and involving written authorization from the minor's legal guardian.

3.6 ID Benefits

Once Water-Revolution, LLC accepts an ID's Application and Agreement, the benefits of the Water-Revolution Global Pay Plan and the ID Agreement are available to the new ID. These benefits include the right to:

a) Purchase Water-Revolution, LLC products and services at wholesale (where applicable and available);

b) Retail (sell) Water-Revolution, LLC products or services and profit from these sales, both in person from existing inventory and remotely through the online website system;

c) Participate in the Water-Revolution, LLC Global Pay Plan (receive bonuses and commissions, if eligible);

d) Sponsor other individuals as IDs into the Water-Revolution, LLC business and thereby build a Downline Organization and progress through the Water-Revolution, LLC Pay Plan achievement levels;

e) Receive Water-Revolution, LLC updates and other Water-Revolution, LLC communications;

f) Participate in Water-Revolution, LLC sponsored support, service, training, motivational, and recognition functions upon payment of appropriate charges, if applicable; and

g) Participate in promotional and incentive contests and programs sponsored by Water-Revolution, LLC for its IDs.

3.7 Renewal of IDs Distributors business

Water-Revolution, LLC charges IDs an annual Distributorship renewal fee of $49. Water-Revolution, LLC will send renewal notices to the ID's email address on file 30 days prior to site expiration with instructions on how to make payment by credit card. IDs without a credit card must renew by mail with a Money Order only. Payment must be received by Water-Revolution, LLC prior to the renewal date to prevent loss of downline sales organization and accrued Business Volume (BV). The payment of the annual renewal fee will:

a) Automatically renew your Water-Revolution Online Website Package;

b) Renew your ID Agreement and maintain your line of sponsorship and any downline sales organization; and

c) Continue your entitlement to participate in Water-Revolution, LLC's Global Pay Plan; purchase Water-Revolution, LLC products; enjoy Water-Revolution, LLC service support programs; participate in company promotions, contests, and recognition, and attend Company events with appropriate fee.

3.7.1 Failure to Renew

Failure by an ID to pay the annual renewal fee due in a timely fashion will render the ID's official website inactive and BV will cease to accumulate for this business center. Sometime after this, the distributorship will be terminated and any BV accrued previously will be permanently lost. Once accrued BV is lost, it cannot be regained.

Section 4 - Operating a Water-Revolution, LLC Distributor's Independent Business

4.1 Adherence to the Water-Revolution, LLC Global Pay Plan

IDs must adhere to the terms of the Water-Revolution, LLC Pay Global Plan as set forth in the official Water-Revolution, LLC company website and other materials. IDs shall not offer the Water-Revolution, LLC opportunity through any method of marketing that uses any non-company approved materials, including electronic media, internet based media, printed media or otherwise.

4.2 Advertising

4.2.1 In General

IDs shall safeguard and promote the integrity and reputation of Water-Revolution, LLC, its equipment, products and officers and employees in conducting their businesses. ID marketing and promotion of Water-Revolution, LLC, the Water-Revolution, LLC opportunity, the Water-Revolution Global Pay Plan, and Water-Revolution, LLC's products shall be consistent with the public interest and must avoid all discourteous, deceptive, misleading, illegal, unethical or immoral conduct or practices.

Only Executive Level IDs may produce individual sales, marketing, and support materials to promote their Water-Revolution, LLC businesses providing they receive written approval from the company. All other IDs may only use sales aids and support materials produced or approved by Water-Revolution, LLC. Sales, marketing, and support materials include, but are not limited to, the official website system and its contents, training and recruiting information, brochures, flyers, pamphlets, posters, postcards, letters, classified advertisements, etc. promoting Water-Revolution, LLC's products and programs, as well as e-mail messages, voice mail message recordings, social media postings, and Internet home pages and websites/ platforms used to publicize Water-Revolution, LLC, its products, services, or Water-Revolution Global Pay Plan or any other form of advertising electronic or otherwise.

Any Executive Level ID who desires to create his/her own promotional and marketing materials must submit a copy of the proposed materials to Water-Revolution, LLC for review and written approval before he/she may use the information to promote his/her business or the Water-Revolution, LLC opportunity. Upon receipt of the proposed promotional material, Water-Revolution, LLC will review the information to determine the appropriateness of the material's form and content. Water-Revolution, LLC will, within 14 days, promptly notify the ID in writing regarding the Company's decision to approve or disapprove the material for use in promoting and supporting his/her Water-Revolution, LLC business activities.

4.2.2 Television and Radio

IDs may advertise on television and radio subject to Water-Revolution, LLC's express approval, as in paragraph 4.2.1 above.

4.2.3 SPAM and Unauthorized Marketing Practices

No ID shall utilize SPAM or "Unsolicited Fax Blast” marketing, nor may an ID violate any State or Federal "Do Not Call” registry. Any such activity will result in termination and may result in additional civil or criminal charges against the ID.

4.2.4 Media Inquiries

All IDs must immediately refer any and all media inquiries regarding Water-Revolution, LLC, Inc., its officers, shareholders, and employees to Water-Revolution, LLC. This policy is designed to assure accurate and consistent information to the public, as well as a proper public image.

4.2.5 Trademarks and Copyrights

a) The Water-Revolution, LLC's name, logo and any Water-Revolution, LLC materials and company website content and the Online Website Package are proprietary trade names, trademarks, and service marks of Water-Revolution, LLC. As such, these marks are of great value to Water-Revolution, LLC and are supplied to IDs for their use only in an expressly authorized manner. Use of the Water-Revolution, LLC name on any item not produced by the company is prohibited except where it also contains the following required statement displayed in a prominent fashion underneath the Water-Revolution name:

ID's Name

Water-Revolution, LLC

Independent Distributor (or "Independent” ID rank)

All IDs may list themselves as an "Independent Water-Revolution, LLC Distributor” in the white or yellow pages of the telephone directory under their own name. No ID may place telephone directory display ads using Water-Revolution, LLC's name or logo. IDs may not answer the telephone by saying "Water-Revolution, LLC", "Water-Revolution" or in any other manner that would lead the caller to believe that he/she has reached the corporate offices of Water-Revolution, LLC.

b) IDs may not record any Water-Revolution, LLC function or event, or produce for sale any recorded company functions or events. IDs may not reproduce or copy any presentation, speech, conference call, or online webinar by any Water-Revolution, LLC spokesperson, representative, speaker, officer, or other ID.

IDs may not reproduce for either sale or personal use any recording of company-produced audio or video presentations.

c) IDs may not publish or cause to be published in any printed or electronic media, the name, photograph or other image or likeness, copyrighted publications or other writings, or proprietary property of individuals who are associated with Water-Revolution, LLC as spokespersons, officers, shareholders, or IDs without first obtaining written authorization from the individual and Water-Revolution, LLC.

4.2.6 Free Offers

No product may be advertised in any fashion for an amount below the current company suggested retail price. "Free Offers” to generate leads are allowed and are an exception to this provision.

4.3 ID Claims and Representations

4.3.1 Product Claims

No claims as to therapeutic or curative properties of any equipment or products offered by Water-Revolution, LLC may be made except those contained in official Water-Revolution, LLC literature. In particular, no ID may make any claim that Water-Revolution, LLC products are useful in the cure, treatment, diagnosis, mitigation, or prevention of any diseases. Such statements can be perceived as medical or drug claims. Not only are such claims in violation of the ID Agreement, but they also violate the laws and regulations of the United States and other jurisdictions.

4.3.2 Income Claims

IDs may not make illegal income projections or income claims when presenting or discussing the Water-Revolution, LLC opportunity or Water-Revolution Global Pay Plan to a prospective ID or customer.

Hypothetical income examples that are used to explain the operation of the Water-Revolution Global Pay Plan, and which are based solely upon mathematical projections, may be made to prospective IDs, so long as the ID who uses such hypothetical examples makes clear to the prospective ID(s) that such earnings are hypothetical and are not typical.

4.4 Commercial Outlets

IDs may display Water-Revolution, LLC products in commercial outlets where the ID personally mans the outlet. Water-Revolution, LLC products may not be displayed together with any competitor's products.

4.4.1 Website or Webpage Displays

Water-Revolution Equipment or Products may only be displayed online via the company's and the ID's official Water-Revolution websites. No other Internet web pages may be used to display the Water-Revolution Products or Equipment unless pre-approved in writing by Water-Revolution, LLC.

4.5 Unauthorized Recruiting of Water-Revolution, LLC IDs Prohibited (Anti-Raiding Clause)

Water-Revolution, LLC IDs may participate in other direct selling, network marketing or multilevel marketing ventures (collectively, "network marketing"), and IDs may engage in selling activities related to non-Water-Revolution, LLC products and services, if they desire to do so.

Although an ID may elect to participate in another network marketing opportunity, he/she is prohibited from unauthorized presentation or recruiting activities, which include the following:

a) Recruiting, presenting or attempting to enroll any non-personally enrolled Water-Revolution, LLC ID for other multilevel marketing business ventures, either directly or through a third party.

This includes, but is not limited to, presenting or assisting in the presentation of other multilevel marketing business ventures to any non-personally enrolled Water-Revolution, LLC ID;

b) Offering any competing non-Water-Revolution, LLC products or opportunities in conjunction with the offering of Water-Revolution, LLC products or business plan or at any Water-Revolution, LLC meeting, seminar, convention, trip or other Water-Revolution, LLC function. Violations of this policy are especially detrimental to the growth and sales of other IDs' Water-Revolution, LLC Businesses and to Water-Revolution, LLC's business and will not be tolerated.

4.5.1 Post Cancellation Solicitation Prohibited

A former ID shall not directly or through a third party solicit any non-personally enrolled Water-Revolution, LLC ID to enroll in any direct sales, network marketing, or multilevel marketing program or opportunity for a period of six (6) months after the cancellation or termination of an individual or entity ID Agreement. This provision shall survive the expiration of the ID's obligations to Water-Revolution, LLC, pursuant to the ID Agreement.

4.5.2 Downline Genealogy Reports

All Downline Genealogy Reports (Downline Reports) are confidential and constitute proprietary business trade secrets belonging to Water-Revolution, LLC. Downline Reports are made available to IDs in strictest confidence for the sole purpose of assisting IDs in developing their Water-Revolution, LLC businesses through their respective downline organizations. IDs should use their Downline Reports to manage, motivate, and train their downline IDs. The ID and Water-Revolution, LLC agree that, but for this agreement of confidentiality and nondisclosure, Water-Revolution, LLC would not provide Downline Reports to the ID. During any term of the ID Agreement and for a period of six (6) months after the termination or expiration of the ID Agreement between ID and Water-Revolution, LLC, for any reason whatsoever, ID shall not, on his/her own behalf or on behalf of any other person, partnership, association, corporation, or other entity:

a) Directly or indirectly disclose any information contained in any Downline Report to any third party;

b) Use the information to compete with Water-Revolution, LLC or for any purpose other than promoting Water-Revolution, LLC;

c) Recruit or solicit any non-personally enrolled ID of Water-Revolution, LLC listed on any report, or in any manner attempt to influence or induce any ID of Water-Revolution, LLC to alter their business relationship with Water-Revolution, LLC; or

d) Use or disclose to any person, partnership, association, corporation, or other entity any information contained in any Downline Report. This provision shall survive the termination or expiration of this Agreement. This particular policy will be strictly enforced in order to protect the rights of IDs, both individually and collectively.

4.6 Corporations and Trusts

A corporation or trust (collectively referred to in this section as an "Entity") may apply to be a Water-Revolution, LLC ID by submitting its Certificate of Corporation or trust documents (these documents are collectively referred to as the "Entity Documents") to Water-Revolution, LLC, along with a properly completed Corporation Registration Form (Form #CR01).

A Distributor's business may change its status under the same sponsor from an individual to a corporation, or trust, or from one type of entity to another. To do so, the ID(s) must provide the Entity Documents and submit a properly completed Corporation or trust Registration Form to Water-Revolution, LLC. The Corporation or trust Registration Form must be signed by all of the shareholders, partners, trustees, or other individuals having an ownership interest in the business. Members of the Entity are jointly and severally liable for any indebtedness or other obligation to Water-Revolution, LLC. It is the responsibility of those persons involved in the Entity to conform to the laws of the state in which their Entity is formed. Water-Revolution, LLC reserves the right to approve or disapprove any ID Application and Agreement submitted by an Entity, as well as any ID Application and Agreement submitted by any current ID(s) for the formation of an Entity for tax, estate planning, and limited liability purposes.

4.7 Deceptive Practices

All Water-Revolution, LLC IDs shall truthfully and fairly describe Water-Revolution, LLC products, the Water-Revolution, LLC opportunity, Water-Revolution Global Pay Plan, and Policies and Procedures in all discussions with potential IDs. This obligation of fair and complete disclosure shall include, without limitation, the following:

a) An ID may not engage in "bait and switch" advertising. Bait and switch advertising consists of any misleading or deceptive offer or practice by which a prospective customer or prospective ID is lead to reasonably believe that the ID is offering a product, service, or opportunity (e.g., employment) which the ID in truth does not intend to or cannot offer;

b) An ID shall neither falsify nor omit any significant material fact about the Water-Revolution, LLC Global Pay Plan;

c) An ID shall make clear that the Water-Revolution, LLC Global Pay Plan is based on sales of Water-Revolution, LLC products, and that Water-Revolution, LLC IDs will not be successful merely by sponsoring other IDs without regard to sales, and that no compensation is available from mere sponsorship of other IDs;

d) An ID shall not state that profits are guaranteed for any Water-Revolution, LLC ID. IDs should explain that Water-Revolution, LLC IDs can expect to be successful only through substantial individual and team efforts;

e) An ID shall not state that any regulatory, consumer, or business agency has approved or endorsed Water-Revolution, LLC's Revolutionary Pay Plan or products. These agencies do not permit the use of their names in any manner in connection with the advertising or sale of merchandise or services;

f) Neither federal, state, provincial or territorial regulatory agencies nor officials approve or endorse any direct selling or network marketing companies or programs. Therefore, IDs shall not represent or imply that Water-Revolution, LLC or its Revolutionary Pay Plan have been "approved," "endorsed" or otherwise sanctioned by any government agency;

g) No individual or entity may have an ownership interest or income earning interest of any kind in more than one (1) Distributor business position. No individual or entity may create or use second positions to attempt to "block” or circumvent their sponsor from earning any commissions or bonuses; and

h) Husbands and wives may have separate Distributor businesses but must have the same Sponsor or Enroller and be placed in the same organization line (same Team Side to sponsor).

4.8 Independent Contractor Status

IDs are independent contractors and are not purchasers of a franchise or business opportunity. The agreement between Water-Revolution, LLC and its IDs does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the ID. Each ID is responsible for determining his/her own hours and activities without control or direction by Water-Revolution. All IDs are responsible for paying their own Sales Taxes.  All IDs are responsible for paying their own income and employment taxes. IDs will not be treated as an employee for purposes of the Federal Unemployment Tax Act, the Federal Insurance Contributions Act, the Social Security Act, state unemployment acts, state employment security acts, state worker compensation Acts, or the Canadian Social Insurance Act, and applicable federal, provincial, and/or territorial unemployment insurance acts, worker compensation acts, income tax acts, or any other federal, state, provincial, or territorial tax or obligation required of employers.

Each ID is encouraged to establish his/her own goals, hours, and methods of sale, so long as he/she complies with applicable laws and the terms and conditions of the ID Agreement.

4.9 Insurance

4.9.1 Business Pursuits Coverage

You may wish to arrange for adequate insurance coverage for your business. Your homeowner's insurance policy may not cover business-related injuries or the theft of or damage to product inventory or business equipment. Contact your insurance agent to make certain that your business property is protected. This can often be accomplished with a simple "Business Pursuit" endorsement attached to your present homeowner's policy.

4.9.2 Product Liability Coverage

Water-Revolution, LLC maintains insurance to protect the Company and IDs against product liability claims. Water-Revolution, LLC's product liability policy does not extend coverage to claims that arise as a result of an ID's misconduct in marketing the products (see also Sections 4.3.1 and 4.3.2).

4.10 International

Because of critical legal and tax considerations, including compliance with foreign laws regarding product approval or registration; regulations regarding ingredients, labeling, and packaging; cautionary statements; protection of intellectual property; compliance with customs, tax, and direct selling laws; equipment or product and income representations; and literature content and language requirements, Water-Revolution, LLC must limit the resale of Water-Revolution, LLC products and services and the presentation of the Water-Revolution, LLC business to prospective customers and IDs located within the United States, its respective territories, and other approved jurisdictions. Moreover, allowing IDs to conduct business in markets not yet opened by Water-Revolution, LLC would violate the concept of affording every ID an equal opportunity to expand internationally. Accordingly, IDs are only authorized to sell Water-Revolution, LLC products and services and enroll Customers or IDs in those countries in which Water-Revolution, LLC has authorized Independent IDs to conduct business, as announced from time to time in official company literature. Water-Revolution, LLC products cannot be shipped into or sold in any unauthorized foreign country for the purpose of resale.

4.11 Lead Assignment Policy

Occasionally, prospects contact Water-Revolution, LLC seeking information pertaining to the Water-Revolution, LLC opportunity. If a prospect is familiar with an ID in his/her area or is currently being serviced by a Water-Revolution, LLC ID, the Corporate Office will recommend the prospect continue contacting that ID for product or as a sponsor. However, if the prospect is not familiar with an ID, Water-Revolution, LLC considers his/her as "unsolicited." The distribution system is intended to be fair and is structured to reward active IDs. However, Water-Revolution, LLC may utilize its sole discretion in making such assignments. Water-Revolution, LLC will consider an ID for leads based on these qualifications:

a) Leadership status as well as Personal Volume (PV) within the past sixty (60) days;

b) Sponsorship activity within the past sixty (60) days;

c) Proximity to the prospect. When several IDs qualify equally under the above requirements, leads will be rotated and/or divided among them, based upon the criteria stated herein and at the Company's sole discretion;

d) Water-Revolution, LLC will give strong consideration to those IDs exhibiting field leadership as evidenced in conducting business meetings and training workshops.

4.12 Adherence to Laws and Ordinances

4.12.1 Local Ordinances

Many cities have laws regulating certain home-based businesses. In most cases these ordinances are not applicable to IDs because of the nature of their business. However, IDs must obey those laws that do apply to them. If a city or county official tells an ID that an ordinance applies to him/her, the ID shall be polite and cooperative and immediately send a copy of the ordinance to the Compliance Department of Water-Revolution, LLC. In most cases there are exceptions to the ordinance that apply to Water-Revolution, LLC IDs.

4.12.2 Compliance with Federal, State, Local, and Territorial Laws and Regulations

IDs shall comply with all federal, state, local, provincial, and territorial laws and regulations in the conduct of their businesses. The violation or attempted violation of any such law or regulation shall be grounds for disciplinary action by Water-Revolution, LLC and its Distributors Board of Representatives as in paragraph 2.4 above.

4.13 Repackaging and Re-labeling Prohibited

IDs may not re-label or alter the labels on any Water-Revolution, LLC products, information, materials, or programs in any way. IDs may not repackage or refill any Water-Revolution, LLC products. Water-Revolution, LLC products must be sold in their original packaging/containers only. Such re-labeling or repackaging would violate governing laws, which could result in severe criminal penalties. Civil liability may also result when the persons using the products suffer any type of injury or their property is damaged as a consequence of the repackaging or re-labeling of products.

4.14 Sale, Transfer, or Assignment of an IDs Distributors or Dealers Business.

No ID shall (by operation of law or otherwise) sell, transfer, or assign (collectively, "transfer") any of his/her rights in a Water-Revolution, LLC ID, or delegate his/her performance as a Water-Revolution, LLC ID, without the prior written consent of Water-Revolution, LLC. Any unauthorized transfer will not be recognized by Water-Revolution, LLC. Water-Revolution, LLC reserves the right to review all terms of sale and insist upon additional terms and conditions prior to the approval of any proposed sale. If it is determined, in Water-Revolution, LLC's and the Distributors Board's discretion, that a ID's Distributor business was transferred in an effort to circumvent compliance with any terms and conditions of the ID Agreement, the transfer shall be void and the Distributor's business shall revert to the transferring ID, who shall be treated as if the transfer had never occurred from the reversion day forward. Water-Revolution, LLC shall not be liable to the original ID for bonuses and commissions (if any) paid by Water-Revolution, LLC in good faith to the transferee ID. Where necessary, Water-Revolution, LLC may take appropriate action to ensure compliance with the ID Agreement. Such action may include, without limitation, involuntary cancellation. In the event that an ID wishes to transfer his/her Distributor business, Water-Revolution, LLC has the right to approve the transfer once the business attains the rank of Manager and earns a minimum of 15 Pay Points and shows full qualification and activity for a period of at least six months prior to the suggested transfer application date. Such approval shall not be unreasonably withheld. Water-Revolution, LLC will take the following factors into consideration:

a) The buyer must become a qualified Water-Revolution, LLC ID, by completing a Transfer of Business Form (Form #TB01) and agreeing to comply with the Water-Revolution, LLC Policies and Procedures;

b) Before any transfer will be approved by Water-Revolution, LLC, any debt obligations the selling ID has with Water-Revolution, LLC must be satisfied;

c) The transferring ID must be in good standing and not in violation of any of the terms of the ID Agreement or these Policies and Procedures, to transfer his/her Distributor business;

d) The transferring ID's history must show that full qualification requirements have been met in the previous six months;

e) Prior to transferring a Water-Revolution, LLC Distributors business, the transferring ID must notify the Water-Revolution, LLC Distributor Support Department of his/her intent to transfer the Distributor business; and

f) The buyer must complete an ID Application and Agreement and possess reasonable ability to satisfactorily perform the obligations of a Water-Revolution, LLC ID. The purchaser must agree to assume the obligations and position of the selling ID.

4.15 Separation of an ID's Distributor Business

Water-Revolution, LLC IDs sometimes operate their Water-Revolution, LLC businesses as husband and wife partnerships, regular partnerships, corporations, or trusts. At such time as a marriage may end in divorce, a partnership, or a corporation, or trust (the latter two Entities are collectively referred to herein as "Entities") may dissolve, arrangements must be made to assure that any separation or division of the business is accomplished so as not to adversely affect the interests and income of other IDs either up or down the line of sponsorship. During the anticipation of a divorce, a partnership dissolution or Entity dissolution, the parties must adopt one of the following methods of operation:

a) One of the parties may, with consent of the other(s), operate the Water-Revolution, LLC business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners, or trustees authorize Water-Revolution, LLC to deal directly and exclusively with the other spouse or non-relinquishing shareholder, partner, or trustee; or

b) The parties may continue to operate the Water-Revolution, LLC business jointly on a "business-as-usual" basis, whereupon all compensation paid by Water-Revolution, LLC will continue to be paid as set forth in the ID Application and Agreement on file with Water-Revolution, LLC. Under no circumstances will the Downline Organization of divorcing spouses, or that of an ID's Distributor business formerly operated by two or more individuals as any form of Entity, be divided. Similarly, under no circumstances will Water-Revolution, LLC split commission and bonus payments between divorcing spouses or members of dissolving Entities. Water-Revolution, LLC will recognize only one Downline Organization and will issue only one commission payment per Distributor business per commission cycle. Commission payments shall always be issued to the same individual or entity.

If a former spouse or a former Entity owner has completely relinquished all rights in their original Water-Revolution, LLC business, they are free thereafter to enroll under any sponsor of their choosing after meeting the required six (6) month waiting period. Such former spouse or partner shall have no rights to and must not try to recruit or entice any IDs in their former organization. They must develop the new business in exactly the same fashion as would any other new ID.

4.16 Succession

Upon the death or incapacitation of an ID, his/her rights to commissions, bonuses, and Downline Organization, together with all ID responsibilities, shall pass to his/her successors in interest upon the receipt of a written application by Water-Revolution, LLC, compliance with these Policies and Procedures, and approval by Water-Revolution, LLC. Appropriate legal preparation must be completed to ensure that the transfer meets Water-Revolution, LLC's requirements and applicable laws. Accordingly, an ID should consult an attorney to assist his or her in the preparation of a will or trust. Whenever a Water-Revolution, LLC ID's Distributor business is transferred by a will, other testamentary process, or trust, the successor acquires the right to collect all bonuses and commissions of the deceased ID's Downline Organization, provided the minimum qualifications are met. The successor(s) must:

a) Execute an ID Agreement;

b) Comply with these Policies and Procedures; and

c) Meet all of the qualifications for the deceased ID's rank under the Water-Revolution Global Pay Plan. The successor(s) are obligated to conduct the business in accordance with all of Water-Revolution, LLC's marketing Policies and Procedures.

In order to affect the testamentary transfer of an ID's Distributor business, the successor must provide the following to Water-Revolution, LLC: (1) an original death certificate; (2) a notarized copy of Letters Testamentary, the will, or other documentation establishing the successor's right to the ID's Distributor business; and (3) a completed and executed ID Agreement.

In order to affect the transfer of an ID's Distributor business because of incapacity, the successor must provide the following to Water-Revolution, LLC:

(1) a notarized copy of an appointment as trustee; (2) a notarized copy of the trust document or other documentation establishing the trustee's right to the IDs Distributors business; and (3) a completed and executed ID Agreement. Bonus and commission payments of an ID's Distributor business transferred pursuant to this section will be paid in a single check jointly to the devisees or transferees. The devisees or transferees must provide Water-Revolution, LLC with an "address of record" to which all bonus and commission payments will be sent.

4.17 Income Taxes

Every year Water-Revolution, LLC will provide an IRS Form 1099 MISC (Non-employee Compensation) earnings statement to each U.S. resident who had earnings of more than $600 in the previous calendar year, or who made purchases during the previous calendar year in excess of $5,000. If earnings and purchases are less than $600 and $5,000, respectively, IDs may submit a request for a 1099, and Water-Revolution, LLC will prepare and forward one. Each ID is responsible for paying federal, local, state, provincial, and territorial taxes on any income generated as an independent ID. If an ID's Distributor business is tax exempt, the Federal Tax Identification Number must be provided to Water-Revolution, LLC.

4.18 Territories

There are no exclusive territories for marketing Water-Revolution, LLC products or services, nor shall any ID imply or state that he/she has an exclusive territory to market Water-Revolution, LLC products or services.

4.19 Trade Shows and Expositions

IDs may, upon company written approval, display and/or sell Water-Revolution, LLC products at trade shows and expositions. All literature displayed at the event must be official Water-Revolution, LLC or company approved literature and must clearly identify the individual(s) as an Independent Distributor or "Independent” rank.

4.20 Transfer of Sponsorship

4.20.1 Conflicting Enrollments

Every prospective ID has the ultimate right to choose his/her own Sponsor. As a general rule, the first ID who does meaningful work with a prospective ID is considered to have first claim to sponsorship. However, every prospective ID has an absolute right to select their Sponsor using any criteria they themselves deem appropriate. Basic tenets of common sense and consideration should govern any dispute that may arise. In the event that a prospective ID, or any ID on behalf of a prospective ID, creates more than one ID identity with Water-Revolution, LLC, listing a different Sponsor on each, the Company will only consider valid the first Online ID Application and Agreement that it receives, accepts, and processes. If there is any question concerning the sponsorship of an ID, the final decision will be made by Water-Revolution, LLC and the Distributors Board of Representatives.

4.20.2 Cross-line Raiding

Cross-line raiding is strictly prohibited. "Cross-line raiding" is defined as the enrollment of an individual or Entity that already has an Online ID Agreement on file with Water-Revolution, LLC, or who has had such an agreement within the preceding six (6) calendar months within a different line of sponsorship. The use of trade names, DBAs, assumed names, corporations, partnerships, trusts, social insurance numbers, tax ID numbers, social security numbers, or fictitious ID numbers or transfers to circumvent this policy is prohibited. IDs may not demean, discredit, or invalidate other Water-Revolution, LLC IDs in an attempt to entice another ID to become part of the first ID's Downline Organization. If Water-Revolution, LLC determines that an ID has engaged in cross-line raiding, it may take any actions it deems appropriate to rectify the problems and inequities caused thereby. Any attempt to persuade a Water-Revolution, LLC ID to engage in cross-line raiding, terminate his/her Distributor business, or otherwise violate this policy in order to become part of the persuading ID's Downline Organization will result in disciplinary action, to include possible involuntary cancellation of the persuading ID's Distributor business. This policy shall not prohibit the transfer of an ID's Distributor business in accordance with Section 4.14.

4.20.3 Permissible Methods of Transferring Lines of Sponsorship

To protect the integrity of all Downline Organizations and safeguard the hard work of all IDs, Water-Revolution, LLC prohibits changes in sponsorship except in the following cases:

a) Where an ID has fraudulently induced a new ID to enroll in Water-Revolution, LLC or has otherwise unethically sponsored a new ID. Water-Revolution, LLC and the Distributors Board of Representatives will review allegations of fraudulent inducement and unethical sponsoring and make a final determination whether the ID will be permitted to transfer to another line of sponsorship. In cases involving fraudulent inducement or unethical sponsoring, Water-Revolution, LLC reserves the right to permit the ID to transfer with his/her entire Downline Organization intact to another line of sponsorship.

b) An ID may voluntarily cancel his/her ID Distributor business in writing and reapply after six (6) full calendar months for a new ID Distributor business under another line of sponsorship. The date on which Water-Revolution, LLC receives the ID's written cancellation notice establishes the start date for accumulating the six-full-calendar-month period. Upon receipt by Water-Revolution, LLC of an ID's cancellation notice, the ID forfeits all rights to the IDs and Web-based Retail Customers under his/her previous line of sponsorship, as well as any bonuses or commissions accruing from their sales volume. The canceling ID's downline IDs and Web-based Retail Customers will remain in the Downline Organization of the Sponsor of the terminating ID.

c) In cases where the Sponsor ID has demonstrated irreconcilable conflict with the Company, its officers, employees or other upline, downline or crossline IDs.

4.20.4 Non-Competition and Trade Secret Protection

a) IDs may not sell or offer for sale any products that may be construed to be in competition with Water-Revolution equipment, products or technology.

b) IDs must take appropriate measures to ensure that proprietary equipment, parts, products, formulas, technology, intellectual property, manufacturing methods and supplier information used by Water-Revolution are protected against competitive theft and competitive re-engineering.  ID's will not share any Trade Secret information learned with any third parties.

Section 5 - Responsibilities of IDs and Sponsors

5.1 Ongoing Supervision, Training and Sales

Any ID who sponsors another ID into Water-Revolution, LLC must perform a bona fide supervisory function to ensure that his/her downline is properly operating his/her Water-Revolution, LLC business. IDs must have ongoing contact, communication, and management supervision with the IDs in their downline organizations. Examples of such contact and supervision may include, but are not limited to, newsletters, written correspondence, personal meetings, telephone contact, voice mail, electronic mail, and the accompaniment of downline IDs to Water-Revolution, LLC meetings, training sessions, and other functions. Upline IDs are also responsible to motivate and train new IDs in Water-Revolution, LLC product knowledge, effective sales techniques, the Water-Revolution, LLC Global Pay Plan, and these Policies and Procedures. As an ID progresses through the various levels of leadership, his/her responsibilities to train and motivate downline IDs will increase.

IDs must monitor the IDs in their Downline Organizations to ensure that downline IDs do not make improper product or business claims or engage in any illegal or inappropriate conduct. Upon request, every ID should provide documented evidence to Water-Revolution, LLC of his/her ongoing fulfillment of sponsorship responsibilities. IDs also have continuing obligation to personally promote sales through new and existing customers.

5.2 Maligning

In setting the proper example for their downline, IDs must not malign other Water-Revolution, LLC IDs, Water-Revolution, LLC's Products, Water-Revolution, LLC's Suppliers or agents, the Water-Revolution Revolutionary Pay Plan, the Water-Revolution, LLC Owners, Officers or the Company's employees.

5.3 Reporting Policy Violations

IDs observing a policy violation by another ID should bring the violation directly to the attention of the Water-Revolution, LLC upline Distributor Board of Representatives member. Details of the incidents such as dates, number of occurrences, persons involved, and any supporting documentation should be included in the report.

Section 6 - Sales Requirements

6.1 Equipment and Product Sales

The Water-Revolution, LLC Pay Plan is based upon the sale of Water-Revolution, LLC equipment, products and services to end consumers. Retail sales to non-distributor consumers is the company’s highest priority and an ongoing responsibility of every distributor. IDs must fulfill specified personal and Downline Organization retail sales requirements (as well as meet other responsibilities set forth in these Policies and Procedures) in order to be eligible for bonuses, commissions, and advancement to higher levels of achievement. The following sales requirements must be satisfied in order for IDs to be eligible for commissions:

a) A minimum of seventy percent (70%) of an ID's orders must be sold to Retail or Direct Retail Customers or to end users. The sales volume of a Web-based Retail Customers shall be included with the sales volume of the ID's retail sales for the purposes of determining compliance with the 70% requirement. IDs may not purchase additional product until at least seventy percent (70%) of the previous order has been sold to end consumers;

b) IDs must develop or service at least three (3) customers every rolling three (3) calendar months. These customers can be either Retail Customers or Web-based Retail Customers, or any combination of the two; and

c) IDs are required to furnish their Retail Customers with a receipt (Form# RR01) which specifies the date of sale, the amount of sale, the items purchased, and the Water-Revolution, LLC satisfaction guarantee. IDs must maintain all retail sales receipts for a period of eighteen (18) months and furnish them to Water-Revolution, LLC at the Company's request. Records detailing the purchases of ID's Web-based Retail customers will be maintained by Water-Revolution, LLC.

6.2 Retail Customer Sales and Advertising Pricing Limitations

IDs may sell Water-Revolution, LLC Products at any price they choose but they must not advertise by any method whatsoever retail pricing that is less than the company's current, posted suggested retail pricing. This applies to print advertising, radio advertising, television advertising, Internet-based advertising, electronic mail or by any other method whatsoever.

Under no circumstances may a Water-Revolution, LLC ID sell any Water-Revolution products or equipment on any online auction or discount site. An ID's failure to comply with this rule may result in the immediate voluntary cancellation of his/her ID Agreement.

6.2.1 IDs may not advertise total price reducing discounts involving "Free Shipping” or other similar incentives in an attempt to circumvent paragraph 6.2 above.

However, due to varying state and provincial laws, sales tax should be charged and paid to the Government by IDs as may be required by their local laws and ordinances if such Sales Tax is not already collected when purchased from Water-Revolution, LLC.

All IDs must provide their Retail Customers with an official Water-Revolution, LLC sales receipt (Form #RR01). These receipts outline the Customer Refund Warranty for Water-Revolution, LLC products, as well as any consumer protection rights.

6.2.2

AlkaWand™ portable demonstration tool may be used as a lead generation tool with "Free Offers” but may not be advertised for sale for less than the current suggested retail price.

6.3 Excessive Purchases of Inventory Prohibited

Water-Revolution, LLC strictly prohibits the purchase of products in unreasonable amounts solely for the purpose of qualifying for commissions, bonuses, or advancement in the Water-Revolution Global Pay Plan. IDs may not purchase more than they can reasonably resell or consume in a calendar month, nor encourage others to do so. IDs are not required to carry inventory of products or sales aids other than the purchase of the Online Marketing Website and Platform and mandatory media kit for $69 plus shipping and handling. IDs who do so may find making retail sales and building a Downline Organization somewhat easier because of the decreased response time in filling customer orders or in meeting a new ID's needs. Each ID must make his/her own decision with regard to these matters.

6.4 Deposits

No monies should be paid to or accepted by an ID for a sale except at the time of product delivery. IDs should not accept monies from Retail Customers to be held for deposit in anticipation of future deliveries.

Section 7 - Bonuses and Commissions

7.1 Bonus and Commission Cycles

Water-Revolution, LLC pays commissions daily, monthly and quarterly, and typically makes them available for electronic payment 14 days after the commissions are earned. An ID must review his/her commissions and report any errors or discrepancies to Water-Revolution, LLC within thirty (30) days from the date of the commission. Errors or discrepancies which are not brought to Water-Revolution, LLC's attention within the thirty-day period will be deemed waived by the ID.

7.2 Adjustment of Bonuses and Commissions

IDs receive bonuses and commissions based on the actual sales of products to end consumers. When a product is returned to Water-Revolution, LLC for a refund, the Sales Volume attributable to the returned or repurchased product(s) will be deducted from the Personal Sales Volume (PSV) of the returning ID and Business Volume (BV) of the returning ID and all upline IDs. This reduction will occur promptly following the date that the product was returned or repurchased.

7.3 Unclaimed Commissions and Credits

IDs must collect commission and bonus payments within six (6) months of their available date. Payments that remain uncollected after six months may be voided.

Section 8 - Product Guarantees, Returns, and Inventory Repurchase

8.1 Product Exchange Guarantee

Water-Revolution, LLC warrants the quality of its products and shall exchange any defective product. Anyone returning a damaged or defective product must contact Water-Revolution Distributor Support at (336) 525-1015 or via the Contact Support tool in your eOffice to complete a Tech Ticket.

8.1.1 Equipment Installation

Water-Revolution, LLC is not responsible for the actions or expense of any professional hired or any amateur used to install the Water-Revolution equipment.

8.2 Return Policies

8.2.1 Retail Customers

Water-Revolution, LLC obligates its IDs to honor the Company's 100%, unconditional, 30-day, money-back guarantee to all Retail Customers. If for any reason a Retail Customer is dissatisfied with any Water-Revolution, LLC product, he/she may return the product to the ID from whom the product was purchased within thirty (30) days from the date of purchase for a replacement, exchange, or full refund of the purchase price. If the Retail Customer requests a refund, the ID who sold the product to the Retail Customer must immediately refund the Retail Customer's purchase price. (Retail Customers must return merchandise to the ID who sold it to them; Water-Revolution, LLC will not accept returned merchandise directly from Retail Customers. The ID, in turn, should contact Water-Revolution Distributor Support, as detailed in paragraph 8.3. Water-Revolution, LLC will then replace the returned merchandise with like product and ship it to the ID via UPS ground service. Faster delivery methods may be available, but will be at the ID's expense).

8.2.2 Web-based Retail Customers

Water-Revolution, LLC offers Web-based Retail Customers a 100% 7-day, money-back guarantee on their initial retail product order. If for any reason a Web-based Retail Customer is dissatisfied with any Water-Revolution, LLC equipment or product purchase, he/she may return that product to the Company within seven (7) days for replacement, exchange, or full refund of the purchase price. For all other returns, the Company shall repurchase the inventory pursuant to the terms of Section 8.3. In addition, the Company will adjust the appropriate ID's Personal (PSV) and Business Volume (BV) pursuant to Section 7.2.

8.2.3 Independent Distributors (IDs)

Water-Revolution, LLC agrees to repurchase from a resigning or terminating ID all unencumbered products and sales aids purchased by the Distributor from the Company within the previous year, which are unused and in commercially resalable condition and its original packaging, for not less than 80 percent of the actual amount paid by the ID for the products and sales aids which are being returned. Water-Revolution, LLC will honor all terms of state buy-back laws in Georgia, Louisiana, Maryland, Massachusetts, Montana, Puerto Rico, Oklahoma, Texas and Wyoming. Additionally, Montana IDs who cancel within 15 days are entitled to a 100% refund of any consideration given to participate.

Products or Equipment other than the very first purchase from a Distributor's eCom website are considered certified as sold under the "70% Rule” are no longer subject to buy-back.

Returns with a value exceeding $100 by an ID will result in a voluntary cancellation of his/her ID Agreement.

8.3 Procedure for All Returns, Replacements and Repurchases

In order to receive a refund, exchange, or replacement, an ID or Web-based Retail Customer must:

a) Call the Water-Revolution, LLC Distributor Support Department at: Tel: (336) 525-1015 to obtain a Return Authorization Number (RMA #). The RMA # must be clearly written on each carton returned. Products that are returned without the RMA # will be refused by the Distribution Center and returned to the sender.

b) Return the product with the original packing slip to the Water-Revolution, LLC warehouse from which it was distributed.

c) Proper shipping carton(s) and packing materials are to be used in packaging the product(s) being returned for replacement, and the best and most economical means of shipping is suggested. Return orders must be tracked and traceable and this responsibility falls with the returning individual. All returns must be shipped to Water-Revolution, LLC shipping pre-paid as Water-Revolution, LLC is not responsible for shipping charges. Water-Revolution, LLC does not accept shipping-collect packages.

d) Proper care must be taken that any equipment returned for warranty work must be drained of any residual water prior to shipment, and it is packaged appropriately for safe transport.

e) The risk of loss in shipping returned product shall be borne by the ID making the return. If returned product is not received by the Company's Distribution Center, it is the responsibility of the ID making the return to trace the shipment.

f) If an ID returns merchandise to Water-Revolution, LLC that was returned to his/her by a Retail Customer, Water-Revolution, LLC must receive the product within ten (10) days from the date on which the Retail Customer returned the merchandise to the ID. The return must be clearly marked with an RMA # and accompanied by:

1) A completed and signed Customer Product Return (Form #RPR01);

2) A copy of the original dated Retail Sales Receipt (Form #RR01); and

3) The unused portion of the product in its original container.

g) Only the Web-based Retail Customer or ID who originally ordered merchandise directly from Water-Revolution, LLC may return the merchandise to the Company.

h) IDs are encouraged to use a traceable means of transport, as Water-Revolution, LLC is not responsible for items lost in transit.

Section 9 - Dispute Resolution and Disciplinary Proceedings

9.1 Disputes between Independent Distributors (IDs)

9.1.1 Grievances and Complaints

When an ID has a grievance or complaint with another ID regarding any practice or conduct in relationship to their respective Water-Revolution, LLC businesses, the complaining ID should first discuss the problem with the other ID. If this does not resolve the problem, the complaining ID should report the problem to his/her upline Distributor Board of Representatives member to resolve the issue at the sales organization level. If the matter cannot be resolved, it must be reported in writing to the Water-Revolution, LLC Distributor Support Department. The Distributor Support Department and perhaps the Distributors Board of Representatives will review the complaint and make a final decision.

The complaint should identify specific instances of alleged improper conduct and, to the greatest extent possible, identify the relevant dates on which the event(s) complained of took place, the location(s) where they occurred, and all persons who have first-hand knowledge of the improper conduct.

9.1.2 Compliance Team Review

Upon receipt of a written complaint, the Water-Revolution, LLC Distributor Support Department and the Distributor Board of Representatives (hereinafter referred to as the Compliance Team) will investigate the matter, review the applicable policies, and render a decision on how the dispute shall be resolved. The Compliance Team may also issue disciplinary sanctions consistent with the provisions of Section 9.3.

9.2 Disputes between Water-Revolution, LLC and its Independent Distributors (IDs)

9.2.1 Arbitration

All disputes and claims relating to Water-Revolution, LLC, its Water-Revolution Global Pay Plan, its equipment, products, the rights and obligations of its IDs and Water-Revolution, LLC, or any other claim or cause of action relating to product purchase(s) or performance, either of an ID or of Water-Revolution, LLC under the ID Agreement, shall be settled totally and finally by arbitration in Blanch, North Carolina. There shall be one arbitrator, an attorney at law with expertise in transactional law (there being a strong preference for an attorney knowledgeable in the direct selling industry), selected from the panel which the American Arbitration Panel provides and the Distributors Board of Representatives or its representative(s). 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 upon the parties and may, if need be, be reduced to a judgment in any court of competent jurisdiction. This agreement to arbitrate shall survive any cancellation or expiration of the ID Agreement. Nothing in these Policies and Procedures shall prevent Water-Revolution, LLC from applying to and obtaining from any court having jurisdiction a writ of attachment, temporary injunction, preliminary injunction, permanent injunction, or other available relief to safeguard and protect Water-Revolution, LLC's interests.

The existence of any ID claim or cause of action against Water-Revolution, LLC does not preclude Water-Revolution, LLC from enforcing the ID's covenants and agreements contained in the ID Agreement. Louisiana residents may arbitrate in New Orleans.

9.2.2 Jurisdiction, Venue, and Choice of Law

Jurisdiction and venue of any matter not subject to arbitration shall reside in Caswell County, North Carolina or in the United States District Court, in and for the District of North Carolina. By signing the ID Application Agreement, all IDs consent to jurisdiction within these two forums. The law of the State of North Carolina shall govern disputes involving the ID Agreement. Louisiana residents may choose Louisiana law and jurisdiction.

9.3 Disciplinary Actions

All of the Policies in the ID Agreement are material terms to the agreement between Water-Revolution, LLC and each ID. Violation of any of the terms and conditions of the ID Agreement, or any illegal, fraudulent, deceptive, or unethical business conduct by an ID may result, at Water-Revolution, LLC's or the Compliance Team's discretion, in one or more of the following corrective measures:

a) Issuance of a written warning or admonition;

b) Denial of advancement or recognition awards;

c) Imposition of a fine, which may be imposed immediately or withheld from bonus and commission payments;

d) Loss of rights to one or more bonus and commission payments;

e) Suspension of the individual's ID Agreement for one or more months or other time frames;

f) Cancellation of the individual's ID Agreement;

g) Collection and destruction of improper advertising materials;

h) Discontinuance of any non-company approved ID advertising campaign;

i) Any other measure expressly stated within the ID Agreement; or

j) Any other measure which Water-Revolution, LLC deems appropriate to equitably resolve injuries to other IDs or to Water-Revolution, LLC caused partially or exclusively by the ID's policy violation or contractual breach.

Section 10 - Ordering

10.1 Ordering Methods

All IDs and Web-based Retail customers must order through the online system through an existing Water-Revolution, LLC ID official website Platform. When using the online system, be prepared to present information including your "ship-to" and "billing" addresses and phone number, email address and payment method information. The Online system will review your order, allowing you to make changes. If you fail to make corrections prior to the conclusion of your online order, the order cannot be changed or added to at a later time. Payment methods are by Credit Card or mail in money order payment for initial ID activation and initial product order.

10.2 Water-Revolution, LLC Autoship Program

IDs in good standing may participate in the Water-Revolution, LLC Autoship Program. To enroll in this program, follow instructions provided on the Online system, identifying the commissionable products you wish Water-Revolution, LLC to automatically send to you on the same date of each calendar month. The account on file from which you authorize payment will be automatically charged the amount of the order plus related shipping fees and sales tax, if applicable. IDs must ensure that they have adequate funds in their account. Only commissionable products may be purchased under the Autoship Program.

10.3 Purchasing Water-Revolution, LLC Products

Each ID must purchase his/her products directly from Water-Revolution, LLC in order to receive the sales volume credits associated with that purchase.

10.4 Back Order Policy

As a general rule, Water-Revolution, LLC will not back-order out-of-stock items. However, Water-Revolution, LLC may back-order Autoship items, if necessary.

10.5 Shipping Discrepancies

Failure to notify Water-Revolution, LLC of any shipping discrepancy or damage within thirty (30) days of shipment will cancel an ID's right to request a correction. Contact Distributor Support at (336) 525-1015 or via the Contact Support tool for assistance in resolving any shipping issues.

Section 11 - Payment and Shipping

11.1 Methods of Payment

Water-Revolution, LLC will accept, provided that all eligibility requirements are satisfied, the following forms of payment for orders: Cashier's checks, money orders and Visa and Mastercard credit cards.

11.2 Insufficient Funds and Declined Credit Cards

All Electronic checks returned by an ID's bank for insufficient funds will be resubmitted for payment. A $50.00 returned check fee will be added to the amount being processed. Any outstanding balance owed to Water-Revolution, LLC by an ID for insufficient funds, any returned-check fees, or declined credit-card charges will be withheld from subsequent bonus and commission payments. It is each ID's responsibility to ensure that his/her credit limit or account balance is sufficient to pay for his/her Water-Revolution, LLC purchases. It is not Water-Revolution, LLC's responsibility to contact IDs in regard to orders canceled due to insufficient funds or declined credit.

Section 12 - ID Account Information Updates

12.1 Change of Address or Telephone Number

In order to ensure timely delivery of products, support materials, and commission payments, it is critically important that Water-Revolution, LLC's files be current. Street addresses are required for shipping, since couriers cannot deliver to a post office box. IDs planning to move must update their personal information section located within their Water-Revolution, LLC Online Website e-Office area. In order that Water-Revolution, LLC can guarantee proper delivery, three days advance notice must be provided to Water-Revolution, LLC on all changes.

12.2 Changes to the ID's Distributor Business

Each ID must immediately update their own personal account information section of their own e-office, password-protected area of their Water-Revolution, LLC Online Website of all changes to the information contained on the ID's Application and Agreement. IDs may modify their existing ID account information as far as address change, telephone number contact change or email address change. The Social Security number or Federal I.D. number, account name change or a change in the form of ownership from an individual proprietorship to a business entity (owned by the ID) can only be changed by submitting a written request, which must include a new properly executed ID Application and Agreement, and appropriate supporting documentation.

12.3 Downline Genealogy Reports and Commission Statements

12.3.1 Downline Genealogy Reports

Downline Genealogy Reports (Downline Reports) are available within the e-office area of the ID's official website system. Downline Reports contain trade secret information which is proprietary to Water-Revolution, LLC. Refer to section 4.5.2 for restrictions on using these reports.

12.3.2 Commission Statements

Commission Statements are available for all active IDs earning a commission or bonus payment and are available to view within the ID's e-Office of their official website system.

12.4 Errors or Questions

In the event an ID has questions about or believes that any errors have been made regarding commissions, bonuses, Downline Genealogy Reports, orders, or charges, the ID must notify Water-Revolution, LLC within thirty (30) days of the date of the purported error or incident in question.

Water-Revolution, LLC will not be responsible for any error, omission, or problem not reported within thirty days.

Genealogy placement errors must be reported within 24 hours and may be adjusted only if no other enrollments or BV have attached to the Business Center. Water-Revolution, LLC has the right to refuse to make any genealogy change requested.

12.5 Resolving Problems

IDs should refer their questions regarding orders, shipments, commissions and bonuses, sales and Water-Revolution Pay Plan issues by telephone or mail to Water-Revolution, LLC's Distributor Support Department.

Mailing Address:

Water-Revolution, LLC

ATTN: Distributor Support Department

2246 NC Highway 62 N

Blanch, NC 27212

(336) 525-1015

Section 13 - Inactivity and Cancellation Policies

13.1 Inactivity

IDs who do not meet the Personal Sales Volume (PSV) requirements specified in the Water-Revolution, LLC Global Pay Plan for any rolling 30-day period or other commission period will not receive a commission for the sales generated through their Downline Organization for the next calendar month or until qualifications are met. Any commission earned until qualification is met will be permanently forfeited.  Commission credits that were issued in error, where proper Qualification was not achieved, will be withdrawn.

13.2 Involuntary Cancellation

An ID's violation of any of the terms of the ID Agreement, including any amendments which may be made by Water-Revolution, LLC in its sole discretion from time to time, constitutes a material breach of the ID Agreement and may result in the Water-Revolution, LLC Compliance Team's option, in any of the Disciplinary Actions listed in Section 9.3, including cancellation of his/her ID Distributor business. Involuntary Cancellation of an ID's Distributor business will result in the ID's loss of all rights to his/her Downline Organization and any bonuses and commissions generated thereby. An ID whose Agreement is involuntarily canceled shall receive commissions and bonuses only for the last full calendar month prior to termination. When an ID's Distributor business is involuntarily canceled, the ID will be notified by certified mail at the address on file with the Company. Cancellation is effective on the date on which written notice is mailed via certified mail, return receipt requested, to the IDs last known address or when the ID receives actual notice of cancellation, whichever occurs first. In the event of such Involuntary Cancellation, the ID must immediately cease representing himself/herself as a Water-Revolution, LLC ID. The ID may appeal the termination to the Water-Revolution, LLC Compliance Team. The ID's appeal must be in writing and must be received by the company within fifteen (15) calendar days of the date of Water-Revolution, LLC's cancellation letter.

If Water-Revolution, LLC does not receive the appeal within the fifteen-day period, the cancellation will be final. The ID must submit all supporting documentation with his/her appeal correspondence. The written appeal will be reviewed by the Water-Revolution, LLC Compliance Team. If the ID files a timely appeal of termination, the Water-Revolution, LLC Compliance Team will review and reconsider the termination, consider any other appropriate action, and notify the ID in writing of its decision. This decision of the Water-Revolution, LLC Compliance Team will be final. An ID whose ID Agreement is involuntarily canceled may reapply to become an ID six (6) calendar months from the date of cancellation. Any such ID wishing to reapply must submit a letter to the Water-Revolution, LLC Compliance Team setting forth the reasons why he/she believes Water-Revolution, LLC should allow him or her to operate an ID Distributor business. It is within Water-Revolution, LLC's sole discretion whether to permit such an individual to again operate a Water-Revolution, LLC business.

13.3 Voluntary Cancellation

13.3.1 Written Cancellation

An ID may cancel his/her Agreement with Water-Revolution, LLC at any time and for any reason by providing written notice to Water-Revolution, LLC indicating his/her intent to discontinue his/her ID Distributor business. The written notice must include the ID's signature, printed name, address, and other appropriate identification.

13.3.2 Voluntary Cancellation for ID Returns

An ID who returns merchandise in excess of $100.00 for refunds (other than validated retail customer returns within the 30-day Retail Customer return rule) may voluntarily cancel his/her ID Distributor business.

13.4 Effects of Cancellation

Following an ID's voluntary or involuntary cancellation, such former ID shall have no right, title, claim, or interest to the Downline Organization which he/she operated or any bonus and/or commission from the sales generated by the organization. Following a ID's voluntary or involuntary cancellation, the former ID shall not hold himself or herself out as a Water-Revolution, LLC ID, shall not have the right to sell Water-Revolution, LLC products or services, must remove any Water-Revolution, LLC sign from public view, and must discontinue using any other materials bearing any Water-Revolution, LLC logo, trademark, or service marks. An ID who has voluntarily canceled will receive commissions and bonuses only for the last full calendar week prior to his/her cancellation. An ID whose Agreement is involuntarily canceled will receive commissions and bonuses only for the last full calendar week prior to cancellation.

Section 14 - Definitions

Definition of Terms

Active Independent Distributor (Active ID) - An ID who satisfies the minimum Personal Sales Volume requirements as set forth in the Water-Revolution, LLC Global

Business Center (BC) – An ID's replicated Water-Revolution, LLC official website, identified by a unique user name.

Business Volume (BV) – The commissionable value assigned to a particular Water-Revolution, LLC Product.

Cancellation - Termination of an individual's ID Agreement with Water-Revolution, LLC. Cancellation may be either voluntary or involuntary.

Commissionable Equipment and Products - All Water-Revolution, LLC products on which commissions and bonuses are paid.

Company - The term Company as it is used throughout these Policies and Procedures, and in all Water-Revolution, LLC literature, means Water-Revolution, LLC.

Downline Organization - The individuals enrolled under each of the two Team sides of your Business Center and their respective Downline Sales Organizations are your Downline Sales Organization.

Downline Report - A report generated by the Water-Revolution, LLC website system that provides critical data relating to the identities of IDs and sales information of each ID's Downline Organization (genealogy). This report contains proprietary trade secret information. (See Section 4.5.2).

End Consumer or Customer - A person who purchases Water-Revolution, LLC products for the purpose of personally using them.

First Sale/First Purchase – The term First Sale or First Purchase refers to the initial products purchased through an ID's Water-Revolution website. Subsequent products or equipment ordered by am Independent Distributor are considered certified as sold under the "70% Rule” and as such are no longer subject to buy-back.

Independent Distributors (ID) - An individual who has executed an ID Application and Agreement which has been accepted by Water-Revolution, LLC or has enrolled online. IDs are required to meet certain qualifications and are responsible for the training, motivation, support, and development of the IDs in their respective Downline Sales Organizations. IDs are entitled to purchase Water-Revolution, LLC products directly from the Company and sell Water-Revolution, LLC Products to Retail Customers, Web-based Retail customers and enroll new IDs, and take part in all Company ID programs.

ID Agreement - The term ID Agreement, as used in the Policies and Procedures, refers to the Independent Distributor Application and Agreement, Water-Revolution, LLC's Policies and Procedures, and the Water-Revolution Global Pay Plan.

Involuntary Cancellation - The termination of an ID's Agreement, which is initiated by Water-Revolution, LLC.

Personal Sales Volume (PSV) – The total Business Volume (BV) attributed to an ID's personal  website sales.

Voluntary Cancellation - The termination of an ID Agreement instituted by the ID who elects to discontinue his/her affiliation with Water-Revolution, LLC for any reason, or for ID returns under the scope of paragraph 13.3.2.

© Copyright 2013-2016 by Water-Revolution, LLC

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