17.

08 (f) Buy Back Rule for FBOs/Preferred Customers opting Voluntary Termination
(i) The Company shall buy back any unsold, saleable FLP product, except literature, that has been
purchased by an individual in his/her ID within the previous twelve (12) months from the one who
terminates his/her Forever Business. Such buy back will be accomplished by the terminating individual,
first giving written notice to the Company of intent to terminate the Forever Business and forgo all rights
and privileges relating thereto. The terminating individual must complete a Buy-Back form and submit
the same to the Company and return all products for which a refund is being claimed, along with proof
of purchase, to the source of purchase. All FLP Products are tagged to the invoice it was purchased under.
In this regard all returning products must track back to their original invoice of purchase. The Company
shall ensure that the policy with regards to unsold saleable product upon termination of the Forever
Business shall be adhered to by the Designated Distributor from whom products have been purchased
by the FBO/Preferred Customer.
(ii) If the product returned by a terminating individual was purchased at Preferred Customer Price (PCP),
the Preferred Customer Profit will be deducted from the Sponsor to whom it was paid. If the product
returned is greater than 1CC, all Bonuses and Case Credits received by the terminating FBO’s upline for
the products returned, will be deducted from the uplines. If the Case Credits were used for any level
move-ups of the FBO or uplines, those move-ups may be re-calculated after deducting the Case Credits
to determine if the move-ups should remain in force.
(iii) If a terminating FBO returns any Combination Pak, and it is missing some product, the refund and the
deductions from the uplines will be calculated as if the entire Combo Pak was returned, and then the
Wholesale or Preferred Customer Price of the missing components will be deducted from the refund
issued.
(iv)After verification of the facts, the FBO will receive a refund from the Company or the Designated
Distributor in the amount equal to the FBO’s cost of the products being returned, less the bonuses
personally received and the cost of handling, freight and any other appropriate setoffs. In case of a
Preferred Customer returning a product, while calculating the refund, any Preferred Customer Profit
earned on the purchases of personally sponsored downlines will also be deducted.
(v) After recouping any costs or damages resulting from the terminated individual’s adverse conduct, if
any, the Company will remove the individual from the Forever Living Marketing Plan, and his/her entire
downline organization will move up directly under the terminating individual’s Sponsor in the current
generation sequence.
(g) The “Buy Back Rule” is designed to impose upon the Sponsor and the Company the obligation to ensure
that FBOs/Preferred Customers are buying products wisely. Individuals may not buy more products than
he/she can use for his/her business and personal needs. The Sponsor should make every effort to provide
recommended guidelines to the downlines so that he/she purchases only as much product as is required
to meet immediate sales needs and that additional products be purchased only after 75% of that product
inventory has been sold, consumed or otherwise utilized. Products previously certified as having been
sold, consumed or utilized shall not be subject to repurchase under the “Buy Back Rule”.

Also take a note of the ‘Cooling-off Period’ defined in the company policy.
Cooling-off Period’– As per clause 3(1)(b) of the Direct Selling Rules, "cooling-off period" means a period of time
given to a Preferred Customer/FBO to cancel the agreement he/she has entered into for participating in the
direct selling business without resulting in any breach of contract or levy of penalty. A period of 30 days from
the date of joining will be considered as ‘Cooling –Off period’ for a Preferred Customer/FBO. During this ‘Cooling-
Off period’ he/she may repudiate his/her Agreement with the Company.

During this Cooling Off period, Preferred Customer/FBO may return any resalable, useable product, that is in
good condition and obtain full refund for the same in accordance with Buy-Back Policy of the Company by
opting for Voluntary Termination as mentioned under clause 17.08 of the Company Policy.”