Luminess Airess ® Independent Consultant Agreement

Welcome! You are on your way to becoming a Luminess Airess Independent Consultant. The following documents, taken collectively, outline the legal relationship between you and Luminess Airess (hereinafter “Luminess Airess” or the “Company”) (collectively the “Parties”):

Independent Consultant Application:

Your application must be completed and submitted on the Luminess Airess online direct sales website (the “Site”). Once approved and accepted by Luminess Airess, the application together with the Policies and Procedures, Compensation Plan, and Terms and Conditions, constitutes the entire legally binding agreement between the Parties.

Policies and Procedures:

The Policies and Procedures, including Appendices, govern the legal relationship between the Parties and outline the guidelines for operating as a Luminess Airess Independent Consultant. This includes without limitation acceptable business practices and standards of conduct for conducting business with the Company, other Independent Consultants, and Customers.

Compensation Plan:

The Compensation Plan specifies the requirements and benefits of the compensation structure for Independent Consultants, including how Commissions and Bonuses are calculated.

Terms and Conditions:

The Terms and Conditions govern use and access to Luminess Airess’ online direct sales Site, along with all products, services, tools, software, applications, functionality or features offered or made available on or through the Site, including without limitation use and access to Airess Order Admin System, Airess App, and LuminessAiress.com Personal Websites.

SECTION 1: LUMINESS AIRESS

Elevate your Life with Luminess Airess. Luminess Air is the world leader in airbrush cosmetics and now, you too can be a part of the fast-growing consumer and professional cosmetics industry with our innovative products designed to dramatically enhance everyday beauty. Luminess Airess is redefining and changing lives by partnering with cosmetics entrepreneurs to elevate the future of looking the best any woman can look and feel inside-out.

Luminess Airess, LLC (“Company” or “Luminess Airess”) is a proud provisional member of the Direct Selling Association (“DSA”). As such, Company and all of its Independent Consultants abide by the principles and practices set forth in the DSA’s Code of Ethics (Appendix C), which is expressly incorporated into these Policies and Procedures by reference for all purposes as if set forth in full. The Code of Ethics and process for filing a complaint with the DSA can be found at www.dsa.org/ethics/ or www.dsa.org/ethics/code/.

SECTION 2: PURPOSE OF POLICIES AND PROCEDURES

2.1 – Legal Relationship between Independent Consultants and Company

These Policies and Procedures, including Appendices A-C (collectively “Policies & Procedures”), define the legal rights and obligations between Luminess Airess and its Independent Consultants, including acceptable business practices and standards of conduct. These Policies and Procedures are expressly incorporated into and form an integral part of Luminess Airess’ Independent Consultant Agreements. As used herein, the term “Independent Consultant Agreement” refers to the legally binding agreement between Luminess Airess and each Independent Consultant and consists of the following: (i) a properly completed Independent Consultant Application that has been approved and accepted by Luminess Airess; (ii) these Policies and Procedures, as may be amended in Luminess Airess’ sole discretion; (iii) Luminess Airess’ Compensation Plan; and (iv) Luminess Airess’ Terms and Conditions governing use and access to Luminess Airess’ online direct sales website (“Site”), along with all products, services, tools, software, applications, functionality or features offered or made available on or through the Site, including without limitation use and access to Airess Order Admin System, Airess App, and Airess Personal Websites. In the event of any conflict between these Policies and Procedures, as may be amended, and any other document, these Policies and Procedures shall control. Capitalized terms used through these Policies and Procedures are defined in the Glossary (Appendix B).

2.2 – Changes to Policies and Procedures

Luminess Airess reserves the right to amend these Policies and Procedures at any time in its sole and absolute discretion. Any substantive amendments to the Policies and Procedures made by Luminess Airess will be provided to all Independent Consultants through e-mail, the Airess App, the Airess Order Admin System, and will be made available on the Luminess Airess Site. Amended Policies and Procedures will become effective thirty (30) days after notice is given. Unless otherwise indicated, amended policies will not be retroactive for conduct preceding the effective date of amendment. Every Independent Consultant is solely responsible for reading and understanding these Policies and Procedures and for ensuring his/her compliance with the most current version hereof. By electronically accepting the Independent Consultant Agreement, continuing as an Independent Consultant in the Program following the effective date of an amendment, and/or by accepting future Bonuses and Commissions, an Independent Consultant confirms acceptance of any changes or additions to the Policies and Procedures.

SECTION 3: INDEPENDENT CONSULTANTS

3.1 - Requirements to become an Independent Consultant:

An individual or Business Entity (see Section 6.3) become an Independent Consultant by complying with the following:

  1. If an individual:
    1. Must be 18 years of age or older;
    2. Must have a valid social security number or U.S. tax identification number;
    3. Must be authorized to work in, and have an address to which products, correspondence and other items may be sent, in the United States, District of Columbia., Puerto Rico, or Guam, or a U.S. military base as permitted by the base commander;
    4. Must not be in jail or prison or otherwise confined to a correctional institution;
    5. Must disclose any felony convictions;
  2. If a Business Entity:
    1. Must be incorporated or organized in the United States, the District of Columbia, Puerto Rico or Guam;
    2. Must have its principal place of business in the United States, the District of Columbia, Puerto Rico or Guam;
    3. Must have a valid Federal Tax Identification Number;
    4. Must identify all Beneficial Owners on the Business Entity Registration Form;
    5. If requested, must provide a true and correct copy of the Business Entity's organizational and charter documentation (e.g., certificate of incorporation, articles of organization, certificate of formation, operating agreement, trust agreement, etc.);
  3. Must provide a valid email address;
  4. Must provide a valid credit card;
  5. Must not be a current employee, officer, or director of Luminess Airess, LLC and/or its affiliates, or the spouse of any of the foregoing;
  6. Must submit a properly completed Independent Consultant Application;
  7. Must read and abide by the Independent Consultant Agreement;
  8. Must purchase a Business Portfolio (not required in North Dakota);
  9. If doing business under an assumed name, must submit a true and complete copy of certificate of assumed name, if requested; and
  10. Must be approved and accepted into the Program by Luminess Airess.

New Applicants must enroll through a Sponsor. If you do not know an Independent Consultant who you wish to have sponsor you, you may visit the Luminess Airess Site to locate an Independent Consultant near you.

Luminess Airess reserves the right to reject any new Applicant in its sole and absolute discretion. This includes without limitation rejection of Applicants with actual or potential conflicts of interest.

3.2 – Independent Contractor Status

Independent Consultants constitute self-employed, non-exclusive independent contractors of Luminess Airess. Independent Consultants shall not be treated as employees of Company or any of its affiliates for any reason, including without limitation for federal, state or local tax purposes or for retirement or unemployment benefits. Each Independent Consultant is solely responsible for paying all applicable taxes owed from any compensation earned. Luminess Airess will not withhold taxes of any kind from Bonuses and Commissions. The Independent Consultant Agreement between Luminess Airess and its Independent Consultants does not create an employer/employee relationship, partnership, or joint venture. Independent Consultants are not, and shall not represent themselves to be, employees, agents or representatives of Luminess Airess or purchasers of a franchise or business opportunity.

Independent Consultants establish and control their own goals, hours, and methods of sale, subject to the terms of the Independent Consultant Agreement and applicable law. Independent Consultants are solely responsible for paying all expenses incurred in developing their business and are not authorized to incur any debt or obligation on behalf of or in the name of Luminess Airess or to open any bank account on behalf of, for, or in the name of Luminess Airess. Independent Consultants have no authority (express or implied) to bind Luminess Airess to any obligation, contract or agreement. Independent Consultants are solely responsible for all decisions made with respect to their business and Independent Consultants assume all business risk in connection with their businesses. Luminess Airess makes no guarantees or representations that Independent Consultants will earn Commissions or Bonuses. Independent Consultants may not rely on Luminess Airess, or any of its affiliates, to provide legal, tax, financial, or other professional advice. Any information provided to Independent Consultants through training, e-mail support, or other context should be independently verified by legal, tax, financial or other professional representatives. Each Independent Consultant is solely responsible for determining the qualifications for conducting business in in his/her domiciliary state, states other than his/her domicile, as well as obtaining any necessary state or local licenses, permits or other required governmental approvals applicable to his/her business.

3.3 – Airess Order Admin System™ and LuminessAiress.com Personal Websites

Upon acceptance and activation of Independent Consultant’s account with Luminess Airess, each Independent Consultant will have access to the Airess Order Admin System™ and his/her own Airess Personal Website, along with any other products, services, tools, software, applications, functionality or features included in the base subscription or which the Independent Consultant elects to add on to the base subscription. Every Independent Consultant will be responsible for creating and maintaining their password protected account.

3.4 – Maintenance and Disclosure of Independent Consultant Information

Every Independent Consultant is responsible for ensuring his/her Independent Consultant Information is accurate and up to date. Independent Consultants must immediately notify Luminess Airess of any changes to their Independent Consultant Information. This information may be updated on the Luminess Airess Site. Because e-mail is a primary method of communication with Company, Independent Consultants must be sure to maintain their current e-mail addresses on file with the Company. By agreeing to these Policies and Procedures and participating in the Program, each Independent Consultant consents to receiving emails from Luminess Airess. Each Independent Consultant also agrees that Luminess Airess may share information with the Independent Consultant’s Upline, including name, telephone number, address, email address and select sales performance data for all of Independent Consultant’s Downline. Social Security Numbers and credit card information shall not be shared with an Independent Consultant’s Upline without separate express permission by the Independent Consultant. By providing his/her email address and telephone number to Company, each Independent Consultant agrees that such information may be disclosed to Company as well as Independent Consultant’s Upline.

3.5 – Maintaining Independent Consultant Status

After being accepted into the Program, an Independent Consultant (including a Business Entity Consultantship) maintains active status by: (i) complying with all of the terms and conditions of the Independent Consultant Agreement; (ii) paying the $35.00 monthly back-end service support fee; and (iii) renewing the Independent Consultant Agreement annually, conditioned upon Company’s acceptance and approval of such renewal. The mandatory $35.00 monthly back-end service support fee provides Independent Contractor with access to Luminess Airess’ Site, along with certain back-end distributor support, reporting services, tools, software, applications, functionality and features made available on or through the Site, including without limitation use and access to Airess Order Admin System, optional Airess App, and Airess Personal Websites.

SECTION 4: BUSINESS KITS AND PRODUCT PURCHASES

4.1 – Starter Kits and Programs

Applicants must purchase a Starter Kit to become an Independent Consultant (not required in North Dakota) so that each Independent Consultant becomes familiar with the Company’s products, services, training, marketing techniques, promotional aids, and other materials. Applicants enroll online by selecting a Starter Kit. Other optional programs to suit each Independent Consultant’s needs are also available, including without limitation supplemental Marketing Materials and additional Luminess Airess Products. An Independent Consultant may return a Starter Kit at any time within one (1) year after activation and receive a complete refund of the purchase price (excluding shipping costs) provided that such goods are in Resalable condition as set forth in Section 12.4 herein. (Note, this one (1) year limitation shall not apply to residents of Maryland, Massachusetts, Wyoming, and Puerto Rico.) Returning a Starter Kit will constitute a Voluntary Termination by Independent Consultant.

4.2 – Business Development Kit (BDK) – (formerly Auto-Ship)

The $20 BDK change will be eliminated and the $40 full product BDK will now be $35 and mandatory for all new consultants. Consultants signed on or before August 31, 2017, will have the option to maintain their $20 BDK or change to the full product BDK for $35. Those consultants currently on the $40 BDK will be moved to the $35 BDK effective September 1, 2017.

*The $35 BDK includes: 10 catalogs, 10 recruitment flyers, 10 of the $20 offer flyers, 4 shades of .25 oz. foundations, on-going maintenance of your personal website, training and dedicated customer service support.

4.3 – No Inventory Requirement

With the exception of the Starter Kit, Independent Consultants are not required to purchase or carry an inventory of Luminess Airess Products. Orders may be placed directly through Luminess Airess’ Site by Independent Consultants and Preferred Customers. Full credit is given to Independent Consultants for such orders. As such, it is possible to earn Commissions and Bonuses without carrying an inventory.

4.4 – Purchase Limitations / 70% Rule

Independent Consultants may make bulk purchases of Luminess Airess Products for resale to Customers so long as at least seventy percent (70%) of the Luminess Airess Products are resold to one (1) or more different Retail Customers within thirty (30) days of the last applicable order delivery date. Additionally, Luminess Airess may review all Independent Consultant orders of Luminess Airess Products in excess of $1,000 during any calendar month. Such orders are subject to the seventy percent (70%) sale requirement and must be sold to at least three (3) different Retail Customers. Independent Consultants are required to maintain receipts to confirm the resale of the Luminess Airess Products upon the terms herein.

Luminess Airess may decline to repurchase Luminess Airess Products from an Independent Consultant who fails to properly comply with documentation requirements. Additionally, in cases in which Independent Consultants have placed excessive orders, Luminess Airess may void performance Bonuses and other recognitions, and seek reimbursement of Commissions. Falsely representing sales data is grounds for termination of the applicable Independent Consultant Agreement.

SECTION 5: INDEPENDENT CONSULTANT PERKS

After an Independent Consultant’s Application is accepted by Company, an Independent Consultant will be entitled to receive the following benefits:

  1. Participate in the Luminess Airess Compensation Plan (including receiving applicable Bonuses and Commissions, if earned, and participating in available promotional opportunities);
  2. Purchase Luminess Airess Products at Independent Consultant Rates;
  3. Sell Luminess Airess Products upon the terms herein;
  4. Receive literature and communications from Company;
  5. Sponsor Applicants into the Program;
  6. Participate in Company sponsored training and support, and promotional, incentive and recognition programs, upon payment of applicable fees, if any.

SECTION 6: INDEPENDENT CONSULTANT RESTRICTIONS

6.1 – Single Accounts

Independent Consultants may register for only one (1) account under a single Sponsor. An individual or Business Entity may not be a party to more than one (1) Independent Consultant Agreement or possess an interest in another Independent Consultantship, whether directly or indirectly. It is a violation of this policy for an Independent Consultant’s credit card information to be associated with more than one (1) account. An Independent Consultant may not pay others to market or sell Luminess Airess Products.

6.2 – Spouses / Common Law Married Couples / Families

The term “Business Entity” includes Spouses and common law married couples may not register as separate Independent Consultants. They must register as one (1) Independent Consultantship under a single Sponsor and using a single social security number. Spouses and common law married couples may not sponsor one another directly or indirectly. Children over the age of eighteen (18) years that reside in their parents’ household but otherwise meet all of the eligibility criteria may have their own Independent Consultantships.

6.3 – Business Entity Consultantships

The term “Business Entity” includes a corporation, limited liability company, partnership, or trust. A Business Entity may act as an Independent Consultant. A Business Entity may apply as a new Independent Consultant or an Independent Consultant already enrolled in the Program may apply to transfer his/her Independent Consultantship to a Business Entity in compliance with Section 3.1. If seeking a transfer or assignment of an existing Independent Consultant Agreement from an individual, as part of the application process the individual must assign his/her Independent Consultant Agreement to the Business Entity Applicant.

An Independent Consultant may add his/her spouse to an existing Independent Consultantship by submitting a new Independent Consultant Application in the form of a partnership. Upon Company’s acceptance of the new Independent Consultant Application, the newly formed Independent Consultant Agreement will supersede the original Independent Consultant Agreement, which will cease to be in effect.

Independent Consultants may not utilize the foregoing procedures to change Sponsors or make an unapproved assignment of an Independent Consultantship.

6.4 – Liability/Responsibility of Independent Consultants and Beneficial Owners

Independent Consultants are responsible for the actions of their immediate household members, except for children over the age of eighteen (18) who have obtained their own Independent Consultantship. Each Independent Consultant is also responsible for the actions of the Independent Consultant’s employees, contractors and agents, and each Independent Consultantship that is a Business Entity is responsible for the actions of its owners, officers, directors, employees, contractors and agents. If any such household member or such owner, officer, director, employee, contractor or agent engages in any activity which, if performed by the Independent Consultant, would violate the Independent Consultant Agreement, including these Policies and Procedures, such activity will be deemed a breach by the Independent Consultant. In such event, Luminess Airess may terminate the Independent Consultantship and/or seek other appropriate remedies against the Independent Consultant. Although not required, Company may at its option provide notice of breach and opportunity to cure to the Independent Consultant prior to taking further action

All Beneficial Owners of a Business Entity Consultantship shall be jointly and severally liable for, and shall indemnify and hold harmless Luminess Airess from and against, any breach of the Independent Consultant Agreement by the Business Entity or any indebtedness or other obligation of the Business Entity owed to Luminess Airess. Beneficial Owners of the Business Entity are also responsible for the conduct of their employees, contractors or agents and will be held accountable for any violation of the Independent Consultant Agreement.

6.5 – Business and Property Insurance

Company shall not provide insurance on behalf of any Independent Consultant.

6.6 – No Exclusivity

There are no exclusive territories for selling or marketing Luminess Airess Products. Independent Consultants have no ownership or exclusivity over any particular geographic areas or markets and shall not make implied or express representations of exclusivity. Independent Consultants have a non-exclusive license to market and sell Luminess Airess Products within the fifty (50) United States, District of Columbia, Puerto Rico and Guam). Independent Consultants are prohibited from marketing or selling Luminess Airess Products outside the fifty (50) United States, District of Columbia, Puerto Rico, and Guam,).

6.7 – Annual Renewal of Independent Consultant Agreement Required

Each Independent Consultant Agreement is effective for a term of one (1) year following its activation date and must be renewed annually. Company will send a renewal notice at least thirty (30) days prior to the anniversary date of activation. To request renewal, an Independent Consultant must complete the renewal process. Failure to do so may result in termination of the Independent Consultant Agreement within thirty (30) days. There is no annual fee to renew for active status Independent Consultants. If an Independent Consultant Agreement is terminated for non-renewal, the Independent Consultant may re-apply in accordance with these Policies and Procedures.

6.8 - Income Taxes

Independent Consultants are solely responsible for paying all applicable taxes, including local, state, federal and other taxes, on any income generated from the sale of Luminess Airess Products and any payments or other monetary or non-monetary compensation under this Independent Consultant Agreement. As required by law, Company will provide an IRS Form 1099 MISC (non-employee compensation) earnings statement for each Independent Consultant who: (a) is a U.S. resident, (b) had global compensation of $600 or more in the previous calendar year paid to her or him in the U.S., or (c) made purchases from Company during the previous calendar year of $5,000 or more. Company will not withhold or make payments for social security, make unemployment insurance or disability insurance contributions, or obtain worker’s compensation insurance on an Independent Consultant’s behalf. If for any reason an Independent Consultant provides an invalid Social Security Number or Tax ID and does not provide a valid Social Security Number or Tax ID within sixty (60) days of request, Company reserves the right to terminate the Independent Consultantship.

Every Independent Consultant shall indemnify and hold Luminess Airess harmless from all applicable taxes on any income generated from the sale of Luminess Airess Products and any payments or other monetary or non-monetary compensation under the Independent Consultant Agreement.

6.9 – Timely Reporting of Errors

An Independent Consultant who believes that errors have been made regarding any monetary payment or obligation, Bonuses, Commissions, charges, or the placement of Independent Consultants in Downline must notify Company in writing within one hundred twenty (120) days of the occurrence of the purported error or incident. Failure to provide notice within such one hundred twenty (120) day period shall constitute waiver of all claims.

6.10 – Residency / Authorization to Work

Each Independent Consultant Agreement must be legal resident or have legal authorization to work or run a business in the country in which Company is permitting Independent Consultant to enroll. Each Independent Consultant Agreement is specific to the country in which a particular Independent Consultant enrolls (“Home Country”). Upon enrollment, Independent Consultants must provide Company with a valid address in the Home Country to which Luminess Airess Products, correspondence or other items may be shipped. Independent Consultants may make purchases, sell Luminess Airess Products and sponsor other Applicants within their Home Country. If it is discovered that an Applicant has provided false residency, identification, social security, or tax identification information, the Independent Consultant’s Independent Consultantship will be terminated immediately, the account will be closed, and the Independent Consultant will lose any Bonuses and Commissions not already paid out.

6.11 - Business on U.S. Military Bases

The base commander in charge determines permissible marketing and sale activities on U.S. military bases outside of the fifty (50) United States, the District of Columbia, Puerto Rico and Guam. If permitted by the base commander, Independent Consultants may only market and sell Luminess Airess Products and present the Program to potential Customers and Independent Consultants also living on the military base. Independent Consultants may not engage in activities offsite of military bases in locations that would otherwise not be an Authorized Country.

6.12 - Business across Borders

(i) Countries with Direct Selling Operations

Provided that Luminess Airess has established direct selling operations in a country (“Authorized Country”), Independent Consultants may sponsor Independent Consultants and sell to Retail Customers in an Authorized Country outside their Home Country through the Luminess Airess Site and Airess Order Admin System. Independent Consultants may not purchase Luminess Airess Products in their Home Country and physically transport them across the border to sell in another country. Luminess currently has direct selling operations in the United States (including the District of Columbia, Puerto Rico and Guam).

If an Independent Consultant wishes to physically cross a border outside of the Independent Consultant’s Home Country to do business on the ground in a country where Company has direct selling operations (an “Authorized Country”), the Independent Consultant must ensure that he/she has the proper authorization to work or run a business in such Authorized Country. The Independent Consultant must make sure to comply with all applicable laws of the Authorized Country, including but not limited to, all immigration, visa and registration requirements. Short term trips and visits for the purpose of meetings, negotiations and training may require business visitor status in such Authorized Country or even a visa in some cases. For further details and information, an Independent Consultant should consult an immigration attorney.

(ii) Countries without Direct Selling Operations

An “Unauthorized Country” is a country in which Company has not established direct selling operations. An Independent Consultant who wishes to cross a border to do business on the ground in an Unauthorized Country is limited to providing business cards and attending small gatherings (less than five (5) people) to discuss general aspects of Luminess Airess and Independent Consultant’s business in Authorized Countries. An Independent Consultant is prohibited from doing the following in an Unauthorized Country:

  1. Attempting to establish a Downline or to promote the Program;
  2. Using flyers, cold calling, mass emailing or mass soliciting of any kind to promote his/her business in an Unauthorized Country;
  3. Importing, selling or distributing and/or assisting the import, sale or distribution of the Luminess Airess Products;
  4. Placing advertisements or distributing promotional material regarding Luminess Airess (unless previously approved by Company);
  5. Conducting training meetings;
  6. Soliciting or negotiating any agreement to commit a citizen or resident of an Unauthorized Country under a specific Sponsor.
  7. Signing up citizens or residents of an Unauthorized Country by using forms from an Authorized Country (unless at the time of enrollment the citizen or resident of the Unauthorized Country has an address to which products, correspondence and other items can be sent, as well as legal authorization to work in the Authorized Country, which the Independent Consultant is responsible for ensuring);
  8. Accepting money or other consideration, or be involved in any financial transaction with any prospective Consultant, either directly or indirectly, for purposes relating to the Luminess Airess Products or the opportunity, including renting, leasing or purchasing facilities for the purpose of promoting or conducting Company related business; or
  9. Promoting, facilitating or conducting any type of activity which exceeds the limitations set forth in these Policies and Procedures or which Luminess Airess deems to be contradictory to its business or interest in international expansion.

6.13 – Potential Tax Consequences for U.S. Consultant Business Activities

Independent Consultants who conduct business activities in other Authorized Countries could be subject to certain tax consequences. Independent Consultants planning to conduct such business activities are encouraged to seek individual tax advice from their own advisors regarding potential tax implications.

SECTION 7: BUSINESS AND MARKETING PRACTICES

7.1 - Media and Media Inquiries

If a member of the press or media contacts an Independent Consultant about Luminess Airess or an Independent Consultantship, the Independent Consultant must refer the inquiry to Luminess Airess. Independent Consultants may not respond to media inquiries regarding Luminess Airess, the Luminess Airess Products, the Program or any other aspect of an Independent Consultantship. This policy is designed to ensure that accurate and consistent information is provided to the public. Failure to comply may result in immediate termination of an Independent Consultant Agreement.

7.2 - Adherence to Approved Marketing Plan

Independent Consultants are obligated to market and promote the Program in a truthful and accurate manner consistent with the Independent Consultant Agreement and Company Marketing Materials. Independent Consultants shall not offer the Program through, in conjunction with, or in combination with any other system, program or offering. Independent Consultants shall not promote, require or encourage any current or potential Customers or Consultants to: (i) participate in the Program in any manner that varies from the Program as set forth in the Independent Consultant Agreement and the Company Marketing Materials; or (ii) execute or adhere to any agreement or contract other than the Independent Consultant Application and these Policies and Procedures in order to become Independent Consultants and participate in the Program.

7.3 – Ethical Marketing – Both Online and Offline

Each Independent Consultant is responsible for safeguarding and promoting the good reputation of Luminess Airess and the Luminess Airess brand. Independent Consultants shall at all times conduct their Independent Consultantships in a manner that reflects favorably on Luminess Airess Products and the good name, goodwill and reputation of Luminess Airess. Independent Consultants shall ensure that their marketing efforts contribute to the public interest and avoid discourteous, deceptive, misleading, unethical, or immoral conduct or practices that are or might be detrimental to Luminess Airess, Luminess Airess Products, or the public, including, without limitation, disparagement of Luminess Airess or Luminess Airess Products. Independent Consultants shall: (i) not publish or use any misleading or deceptive advertising material regarding Luminess Airess Products or the Program; (ii) not make any statements, representations, guarantees or warranties regarding the Luminess Airess Products or the Program that are inconsistent with those set forth in the Independent Consultant Agreement and Company Marketing Materials (whether with regard to prices, quality, performance, standards, grades, contents, style or model, place of origin, availability or otherwise); (iii) distribute Luminess Airess Products only as shipped by Company, unopened, and with all documentation, packaging and other supplemental materials intact; and (iv) not alter or modify any Luminess Airess Product or packaging, or take any action that affects or could affect the appearance, quality, content or performance of any Luminess Airess Product, other than as authorized or directed by Company. Independent Consultants shall comply with all laws, rules, regulations and governmental requirements applicable to the operation of their Independent Consultantships and performance under this Independent Consultant Agreement, including the marketing, promotion and sale of the Luminess Airess Products.

7.4 - Product Claims

(i) Product Claims in General

Independent Consultants shall not make any claims or representations regarding the Luminess Airess Products other than those claims and representations found in the approved Luminess Airess Marketing Materials. All claims regarding cosmetic Luminess Airess Products must focus exclusively on appearance changes. If a Luminess Airess Product label contains “active ingredients” in the Drug Facts Box, then it contains OTCs (Over-The-Counter drugs) and any claims regarding changes to the structure or function of the body must be strictly limited to the claims found in approved Company Marketing Materials and product labeling.

(ii) No False or Exaggerated Claims

Independent Consultants shall not make any false, deceptive, or misleading Luminess Airess Product claims. To the extent that Independent Consultants make any claims regarding the Luminess Airess Products, or the ingredients in a Luminess Airess Product, such Luminess Airess Product claims must be consistent with official Luminess Airess Marketing Materials. Additionally, Independent Consultants may not make claims (including personal testimonials) about the therapeutic or curative properties of any Products offered by Luminess Airess or a Luminess Airess Product’s ingredients, except those contained in official Luminess Airess Marketing Materials. Not only do such claims violate these Policies and Procedures, they may potentially violate federal and state laws.

7.5 - “Before and After” Photos

Independent Consultants may use the approved “before and after” photos and product stories published by Luminess Airess in support of the Luminess Airess Products. Photos claiming results for conditions other than those indicated on the Luminess Airess Product labeling may not be used for any purpose. “Before and after” photos and Luminess Airess Product testimonials may be submitted to Company for suggested publication via the Airess Order Admin System. An Independent Consultant wishing to use his/her own personal “before and after” photos must comply with the following guidelines:

  1. The Independent Consultant must identify herself or himself as an Independent Consultant for Luminess Airess and the subject of the photo;
  2. The information shared must represent the Independent Consultant’s honest opinions, findings, beliefs and experiences from using the Luminess Airess Products;
  3. The information shared must clearly and conspicuously disclose the substantiation of representations conveyed (e.g., how often and how long the Luminess Airess Products were used or whether any other products or treatments contributed to the results);
  4. Makeup must be removed and hair pulled back from the face;
  5. Photos must be in focus, in a portrait landscape and with a well-lit, plain background;
  6. Photos must be supported by and consistent with Luminess Airess Product label claims;
  7. The “before and after” photos must be taken under the same conditions; and
  8. Touch-ups and photo editing are not permitted.

If an Independent Consultant wishes to use “before and after” photos or product testimonials of a Customer, friend or family member, in addition to the foregoing requirements, the Independent Consultant must obtain permission from the person who is the subject of the photos or testimonial. If posting a “before and after” photo or product testimonial on a social media site, Independent Consultant is responsible for ensuring that all the foregoing requirements are met. Such photos and testimonials may be shared on social media sites, unless the Independent Consultant who shares it has any reason to believe that the foregoing requirements have not been met. Any other photos or testimonials relating to the Luminess Airess Products are considered prohibited Product Claims.

7.6 – Income Claims Prohibited

In their recruiting and sponsoring efforts, Independent Consultants shall not make claims or representations of potential or guaranteed income or profits in connection with the Program. Not only can this be counterproductive, but the Federal Trade Commission and several states have laws and/or regulations that prohibit certain types of income claims and testimonials by persons engaged in direct selling/network marketing. While it may seem beneficial to tell other Independent Consultants and potential Consultants about their earnings or the earnings of others, such claims may have legal consequences and adversely impact the Company and the Independent Consultants making the claims, unless appropriate disclosure required by law is also made contemporaneously with the income claim. Because Independent Consultants generally do not have the information necessary to comply with such legal requirements, when discussing the Program, Independent Consultants may not make any projections, claims or estimates regarding potential or guaranteed income from the Program or disclose their own income from the Program. All amounts earned through the Program are based only on the sale of Luminess Airess Products and not on the mere act of sponsoring other Independent Consultants. It is important that Independent Consultants do not make representations that could lead a prospective Independent Consultant to believe that he/she can be successful as an Independent Consultant without commitment, effort, and sales skill. As indicated, not all purchases qualify towards earning Bonuses and Commissions.

7.7 – Restrictions on “Lifestyle” and Hypothetical Claims

“Lifestyle claims” and hypothetical income representations are generally considered income claims. A lifestyle claim typically includes pictures or statements involving, large homes, luxury cars, and exotic vacations, as well as implications that income from the Independent Consultantship allowed retirement or part-time work. Similarly, hypothetical income examples used to illustrate the operation of the Compensation Plan are considered to be analogous to income claims and are prohibited. Independent Consultants may make lifestyle claims or provide hypothetical income examples only if the following conditions are met:

  1. Accurate information must be provided and must not be misleading;
  2. The level of effort required to achieve the specified results must be fully detailed;
  3. Potential or guaranteed income claims may not be made;
  4. Actual earnings may not be disclosed;
  5. Examples of hypothetical income must be clearly indicated; and
  6. A Luminess Airess Income Disclosure Statement (“IDS”) must be provided in all instances. The Income Disclosure Statement is available at the Luminess Airess Site where the Compensation Plan is described at www.luminessairess.com.

If speaking about lifestyle claims during an in-person meeting, a copy of the Luminess Airess IDS should be distributed to attendees.

Any written statements, including without limitation personal social media posts and profiles, email signature blocks, or written personal stories that include lifestyle claims must include the following disclosure:

“This is my unique story; for info re: typical results, click here.”

Or alternatively:

“This is my unique story; for info re: typical results search ‘Luminess Airess IDS.’”

The above disclaimers must also be used if making an express or implied lifestyle claim tied to the Company, such as by referring to Luminess Airess, or by saying “my company,” “the company,” or when using any implicating hashtags. Importantly, if the lifestyle claim is geared toward recruiting, the following disclaimer must be added:

“This is my unique story. Actual earnings vary significantly; no income is guaranteed. For info re: typical results, search Luminess Airess IDS.” [or: click here.”]

7.8 - No Representations Regarding Governmental Endorsement

No regulatory agencies nor officials of any jurisdiction approve or endorse any specific direct selling or network marketing companies or programs. Independent Consultants may not represent that the Luminess Airess Products or the Program have been approved, endorsed, or otherwise sanctioned by any governmental or regulatory agency or official.

In addition, Independent Consultants may not make any claims or representations regarding the Luminess Airess Products that constitute off-label drug claims. Independent Consultants may represent that Luminess Airess Products meet all FDA and other safety guidelines and regulations.

7.9 – Responsibility for Statements

Independent Consultants are fully responsible for all verbal and written statements made regarding Luminess Airess Products and/or the Program that are not expressly contained in official Luminess Airess materials. This includes statements and representations made through all sources of communication media, whether person-to-person, in meetings, online, through social media, in print, or any other means of communication. INDEPENDENT CONSULTANT AGREES TO INDEMNIFY, HOLD HARMLESS AND DEFEND LUMINESS AIRESS, LLC AND ITS OWNERS, SHAREHOLDERS, MEMBERS, MANAGERS, DIRECTORS, OFFICERS, EMPLOYEES, PARENTS, SUBSIDIARIES, AFFILIATES, AGENTS, REPRESENTATIVES, AND ATTORNEYS (“LUMINESS INDEMNIFIED PARTIES”) AND HOLD THEM HARMLESS FROM ANY AND ALL LIABILITY, INCLUDING WITHOUT LIMITATION ANY JUDGMENTS, CIVIL PENALTIES, REFUNDS, ATTORNEY FEES, COURT COSTS, OR LOST BUSINESS INCURRED BY LUMINESS INDEMNIFIED PARTIES AS A RESULT OF ANY UNAUTHORIZED REPRESENTATIONS MADE OR ACTIONS TAKEN BY INDEPENDENT CONSULTANT. THIS PROVISION SHALL SURVIVE THE TERMINATION OF THE INDEPENDENT CONSULTANT AGREEMENT.

7.10 - No Repackaging or Re-labeling

Independent Consultants may not re-label or alter the labels on any Luminess Airess Products, Luminess Airess Marketing Materials or other information or materials related to the Program in any way, other than as authorized or directed by Company. Independent Consultants may only sell Luminess Airess Products in their original packaging and may not repackage, re-label, or alter Luminess Airess Products nor the labels on Luminess Airess Products sold. Independent Consultants may, however, affix their address labels to the Luminess Airess Product packaging, but must affix the labels in a way that does not impair the ability to return such Luminess Airess Products and may not cover any other text on the label.

Tampering with labels/packaging could be a violation of federal and state laws and may result in civil damages or criminal penalties. Civil liability may also result if a person using the Luminess Airess Products suffers any type of injury or property damage due to the repackaging or re-labeling of the Luminess Airess Products. Further, altering a Luminess Airess Product in ways other than as specified by Company voids all Luminess Airess Product warranties, if any, and Company is no longer liable for any damages that result from altered or improperly used Luminess Airess Products.

7.11 – Retail Sales Receipts and Right to Cancel Transactions

When making a sale of a Luminess Airess Product directly to a Customer, Independent Consultants must provide the Customer with two (2) copies of a sales receipt at the time of the sale and MUST verbally inform the Customer of applicable consumer protection rights afforded by federal and state law. Prior to providing the receipt to the Customer, Independent Consultants must ensure that the cancellation notice set forth on the reverse of the receipt is properly completed and contains the following information:

  1. The date of the transaction;
  2. The date (not earlier than the third (3rd) business day, i.e., Monday through Saturday, excluding government holidays, following the date of the transaction) by which the buyer may give notice of cancellation for purchases of $25 or more (Note: If the sale transaction takes place in Alaska, the date must be the fifth (5th) business day following the date of the transaction for purchases of $10 or more. If the transaction takes place in North Dakota and the customer is age sixty-five (65) or older and the purchase is $50 or more, the date must be the fifteenth (15th) business day following the date of the transaction. If the transaction takes place in Montana, the date must be the fifteenth (15th) day after enrollment for Montana Consultants);
  3. Name and address of the selling Independent Consultant; and
  4. The signature of the purchaser, regardless of whether a credit card was used in the transaction

Independent Consultants must retain copies of their retail sales receipts for a period of two (2) years and make them available for inspection at Company’s request. Company reserves the right to verify Independent Consultant’s resale of Luminess Airess Product inventory and inspect documentation of retail sales.

7.12 - Downline Reports

Company will make certain information and reports available to Independent Consultants, including Downline Reports, order history reports, and contact lists necessary to run and grow their own respective Independent Consultantships. The Downline Reports will contain names, telephone numbers, addresses, email addresses and select sales performance data for all Independent Consultants in an Independent Consultant’s Downline. This Confidential Information is made available in the strictest confidence and for the sole purpose of assisting each Independent Consultant in working with their respective Downlines. Downline Reports may not be used by Independent Consultants for any other purpose other than growing and developing their respective Independent Consultantships. Updated order history and activity will generally be available to Independent Consultants on Airess Order Admin System within three (3) Business Days.

By enrolling and participating in the Program, each Independent Consultant agrees to allow his/her performance information to be included in the Downline Reports provided to his/her respective Upline. All Downline Reports and the information contained therein are the Confidential Information of Luminess Airess. Unless otherwise expressly permitted, Independent Consultants must not:

  1. Disclose any information contained in any Downline Reports to any third party, whether directly or indirectly;
  2. Utilize information to compete with Company;
  3. Utilize information for any purpose other than facilitating communication and leadership within their respective Downlines or developing their own respective Independent Consultantships;
  4. Encourage or solicit, directly or indirectly, any Customers or Independent Consultants in a Downline Report to alter their business relationship with Company; and
  5. Disclose protected account information or Passwords to anyone.

This obligation to protect Confidential Information shall survive the termination or expiration of the Independent Consultant Agreement.

7.13 – Negative and Disparaging Remarks

While Luminess Airess welcomes constructive input from its Independent Consultants, negative comments and remarks about Luminess Airess, its Luminess Airess Products, its Program, or Compensation Plan, only serve to damage the business development and enthusiasm of other Independent Consultants. Therefore, Independent Consultants must not criticize or disparage Luminess Airess, other Independent Consultants, Luminess Airess Products, the Program, or the Company’s directors, officers or employees. This includes any criticism or disparaging remarks posted on the Internet or any other public forum, both during the period of the Independent Consultantship and after it is terminated. An Independent Consultant who disparages any of these parties is considered to be in material breach of his/her Independent Consultant Agreement and will be subject to disciplinary action.

Any concerns or complaints or concerns regarding Luminess Airess Products or other Independent Consultants should be directed to Luminess Airess by emailing the compliance department at compliance@luminessairess.com or calling (800) 844-6AIRESS . Disputes or disagreements between any Company and any Independent Consultant shall be resolved through the dispute resolution process set forth herein.

7.14 – Professional Conduct / Reporting Violations

Independent Consultants are expected to conduct themselves in a professional manner at all times and not to engage in any activity that could damage the Company’s good reputation or create an environment that inhibits other Independent Consultants from developing their own respective Independent Consultantships. Examples of improper conduct include without limitation sexual harassment, verbal abuse, racial, religious, gender or sexual orientation discrimination, activity promoting or inciting hatred or violence, and fraudulent, misleading or deceptive conduct. Independent Consultants who witness or observe a policy violation by another Independent Consultant or who believe that an employee or representative of Luminess Airess has engaged in conduct that violates professional standards of conduct are obligated to promptly report the violation to Luminess Airess via the Airess Order Admin System. Complainants are advised that they may not be notified of the status of any reported violation.

7.15 – Adherence to Laws and Ordinances

Independent Consultants shall comply with all applicable laws and regulations in the conduct of their Independent Consultantships. Independent Consultants are responsible for obtaining all required licenses to run their business and are responsible for any related fees.

7.16 – Security

(i) Protecting Information

Independent Consultants shall implement and maintain appropriate safeguards to protect the confidentiality of Customer Data and Confidential Information. Appropriate safeguards for electronic and paper records may include without limitation: (i) encrypting data before electronically transmitting it; (ii) storing records in a secure location; and (iii) password-protecting computer files and securely shredding paper files containing Confidential Information or Customer Data after use. Independent Consultants must keep Customer Data and other Confidential Information secure from all persons who do not have legitimate business needs for the information. To constitute legitimate business needs, the business needs must have been disclosed to the Customer and the Customer must have given his/her or his informed consent to them. If Independent Consultants dispose of any paper or electronic record containing Customer Data and other Confidential Information, Independent Consultants shall do so by taking all reasonable steps to permanently destroy the information including without limitation: (i) shredding; (ii) permanently erasing and deleting; or (iii) otherwise modifying the Customer Data and other Confidential Information to make it unreadable, non-reconstructible and indecipherable through any means. Upon request, Independent Consultants shall certify to Company that all forms of the requested Confidential Information and Customer Data have been destroyed and, if not, shall specifically identify any exceptions.

(ii) Reporting Security Breaches

Independent Consultants must comply with all applicable privacy and data security laws, including any security breach notification laws. An Independent Consultant having knowledge of or suspecting an actual or threatened Security Breach affecting Customer Data shall promptly send written notice to the applicable Customers, Luminess Airess and, if required by Company or applicable law, the applicable privacy commissioner or other regulatory body. Any such notification shall comply with all applicable laws and specify the following: (i) the extent to which Customer Data was or was suspected to be disclosed or compromised; (ii) the circumstances of the Security Breach; (iii) the date or period of time on which it occurred; (iv) a description of the information affected; (v) a description of the steps taken to reduce the risk of harm from the Security Breach; (vi) contact information for a person able to answer questions regarding the Security Breach; (vii) any other information required by the applicable law; and (viii) in the case of a notice to a privacy commissioner or other regulatory body, an assessment of the risk of harm to any affected persons and an estimate of the number of persons affected. Independent Consultants shall cooperate with Company, affected Customers, and any applicable privacy commissioner or other regulatory body and use their best efforts, at their own expense, to mitigate any potential damage caused by a breach of their obligations under the Independent Consultant Agreement or any law applicable to Customer Data.

7.17 - Confidential Information

Luminess provides extensive support to aid its Independent Consultants to assist in growing and developing their Independent Consultantships. This includes access to confidential and proprietary information and trade secrets belonging to Luminess Airess as further defined in Appendix B (“Confidential Information”). Luminess Airess seeks to protect this information as well as its goodwill. This information is provided to Independent Consultants solely to assist, motivate, and train their Downlines and may not be disclosed to any third party. The misuse of Confidential Information may subject an Independent Consultant to disciplinary action and/or termination of his/her Independent Consultant Agreement.

Therefore, to protect the Confidential Information, Company and Independent Consultant agree that both during the term of this Independent Consultant Agreement and indefinitely thereafter, Independent Consultant shall:

  1. Use the same degree of care to protect Confidential Information that he/she uses to protect his/her own sensitive and proprietary information.
  2. Use Confidential Information only for the purposes of performing his/her obligations or exercising rights under his/her respective Independent Consultant Agreement and not to compete with Company or to recruit or solicit other Independent Consultants from altering their relationship with Company.
  3. Limit access to Confidential Information to only those persons who have a legitimate need to know such information in the performance of Independent Consultant’s rights and obligations under his/her respective Independent Consultant Agreement and not to disclose Confidential Information to any other individual, partnership, association, corporation, or other entity.

Every person to whom access to Confidential Information is provided shall be bound by a confidentiality obligation at least equivalent to the confidentiality obligations of each Independent Consultant under his/her respective Independent Consultant Agreement. Each Independent Consultant shall be responsible for the acts and omissions of his/her respective employees, contractors and agents with respect to such confidentiality obligations. However, an Independent Consultant may disclose Confidential Information to the extent he/she is legally compelled to do so provided that, prior to any such compelled disclosure, the Independent Consultant notifies Company and fully cooperates with Company in protecting against or limiting the disclosure of Confidential Information. The rights granted to Company in this Section are cumulative to any other remedy available to Company at law or in equity and shall survive the termination or expiration of the Independent Consultant Agreement.

7.18 - Defend Trade Secrets Act

Pursuant to the 2016 Defend Trade Secrets Act, 18 U.S.C. § 1833(b), an Independent Consultant will not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret of Luminess that (a) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to the Independent Consultant’s attorney and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other Independent Consultant Policies and Procedures document that is filed under seal in a lawsuit or other proceeding. If an Independent Consultant files a lawsuit for retaliation for reporting a suspected violation of law, he/she may disclose the trade secret to her or his attorney and use the trade secret information in the court proceeding, but only if the Independent Consultant (I) files any document containing the trade secret under seal, and (II) does not disclose the trade secret, except pursuant to court order. Nothing herein or in the Independent Consultant Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create any liability for disclosures of trade secrets that are expressly allowed by such section. Further, subject to the foregoing, nothing in any agreement between Independent Consultant and Company shall prohibit or restrict the Independent Consultant from making any voluntary disclosure of information or documents related to potential violations of law to any governmental agency or legislative body, or any self-regulatory organization without advance notice to Company.

7.19 – Venue Limitations

(i) Commercial Outlets / Retail Stores Prohibited

Independent Consultants are prohibited from displaying, marketing or selling Luminess Airess products in any permanent retail or service business establishment open or available to the general public or otherwise available to “walk-in” Customers. This includes department stores, health food stores, beauty supply outlets, schools, supermarkets, pharmacies, mall booths, kiosks, discount establishments, swap meets, drugstores, flea markets, specialty gift shops or any other business or commercial establishment open or available to the general public.

Cash-and-carry sales from a retail establishment are strictly prohibited. Signs, banners, flyers and other advertising outside retail locations announcing or directing shoppers to a Luminess Airess display inside a retail environment are prohibited. In addition, Independent Consultants may not sell on the sidewalk of a retail establishment or in the parking lot of a retail establishment.

Customer orders cannot be delivered to customers at any retail location. Deliveries to customers must be made outside of and away from retail environments.

(ii) Personal Service Facilities

Luminess Airess Products may be sold or displayed in personal service facilities that are owned and operated by an Independent Consultant upon the conditions herein and subject to Company’s prior written approval. Personal service facilities include without limitation: (i) offices and other areas located in private clubs that are not accessible to or in view of the general public; (ii) the private offices of professionals who operate by appointment only (e.g., doctors, dentists, chiropractors, etc.); and (iii) beauty salons or spas that operate by appointment only. Sales of Luminess Airess Products in such facilities must comply with local laws and regulations. No signs, flyers, advertisements or Luminess Airess Products may be visible from outside of the personal service facility. Further, the owner of the personal service facility where the Luminess Airess Products are sold or displayed must be an Independent Consultant in good standing and sign a written acknowledgement confirming that his/her business complies with the foregoing requirements. Each Independent Consultant selling Luminess Airess Product in his/her personal service facility is personally responsible for the actions of his/her non-Consultant employees and independent contractors. Actions of a non-Consultant employee, agent or contractor may be deemed a breach of the Independent Consultant Agreement if such action performed by the Independent Consultant would violate the Independent Consultant Agreement. In such instances, Company may terminate the Independent Consultantship and/or seek other appropriate remedies against the Independent Consultant. Company may provide notice and opportunity to cure to the Independent Consultant but is not required to do so.

(iii) Trade Shows / Events

Luminess Airess Products and authorized signage may be displayed and sold at certain events that are limited in duration and conducive for promoting the Luminess Airess brand, such as trade shows, professional expositions, state fairs, health fairs, conventions and bridal shows. Independent Consultants are not permitted to participate in events that are permanent in nature or that are not conducive to Luminess Airess’ professional image, such as swap meets, garage sales, flea markets, and farmers’ markets. Independent Consultants are not required to get prior approval to attend an event. Independent Consultants must use their best judgment and are solely responsible for verifying and complying with all registration and event criteria, including whether the promoter will allow Luminess Airess Product marketing and display before making a deposit with the promoter. While at an event, Independent Consultants must personally comply with the Policies and Procedures and are responsible for the actions of any non-Consultant individuals who work the event to promote Luminess Airess.

Independent Consultant expressly acknowledges and agrees that Independent Consultant shall indemnify, defend and hold harmless Luminess Airess and its agents, stockholders, members, employees, directors, officers and attorneys from any claims by third parties related to Independent Consultant’s participation in events not sponsored by Company. Independent Consultant must comply with applicable laws and regulations and obtain any required permits or licensing in conjunction with an event (e.g., if playing music, proper license to play such songs). Luminess Airess does not offer liability insurance, will not provide the Company Tax Identification Number for any event, and will not consign Luminess Airess Products, marketing materials or other types of merchandise for display, use or sale at any event.

(iv) Person-to-Person Sales

Other than sales through the Luminess Airess Site or at events permitted herein, Luminess Airess Product sales must be made through personal one-on-one marketing to people with whom Independent Consultants have established a business or personal relationship. Door-to-door sales and solicitation are discouraged. An Independent Consultant conducting business in this manner must ensure compliance with applicable state and local laws (e.g., registration requirements and restrictions on timing of solicitations). Failure to comply with requirements in such jurisdictions could result in fines.

(v) Reselling

Independent Consultants cannot knowingly sell to anyone who is going to resell Luminess Airess Products in retail environments, online, through fairs and shows, or through any other reselling/retailing venue.

SECTION 8: SPONSORING AND TRAINING

8.1 - Sponsoring Other Consultants

Independent Consultants have the right to sponsor and enroll others to become Independent Consultants in any jurisdiction where Luminess Airess is authorized to do business. However, Independent Consultants do not earn Commissions and Bonuses in the Program from sponsoring other Independent Consultants. All amounts earned through the Program are based only on the sale of Luminess Airess Products and not on the mere act of sponsoring other Independent Consultants. Independent Consultants may not recruit or enroll an individual who is under eighteen (18) years of age, regardless of the age of majority in the prospective Consultant’s country, state or province of residence. Potential Consultants must read all of the terms and conditions of the Independent Consultant Agreement in full before they may complete and submit the Application. The Application must include the Sponsors’ full name and Identification Number. Sponsors of Georgia residents must additionally: (i) provide a Notice of Disclosures Required by Georgia Law to any potential Georgia Independent Consultant who seeks to purchase a Starter Kit with optional add-ons that exceed $500 at the time of enrollment; and (ii) upon request, provide certain disclosures regarding Luminess Airess prior to submitting the Independent Consultant Application.

8.2 - International Sponsorship

An Independent Consultant wishing to sponsor Independent Consultants in an Authorized Country that is not Independent Consultant’s Home Country, must ensure compliance with all applicable laws of that specific Authorized Country. This includes without limitation all immigration, visa and registration requirements, as well as compliance with Luminess Airess Policies and Procedures applicable to the Authorized Country. Company reserves the right to designate certain countries wherein all pre-marketing conduct is expressly prohibited. It is an Independent Consultant’s responsibility, prior to each instance of conducting pre-market opening activities in any Unauthorized Country, to verify with Company any allowable activity unless previously approved by Company. However, the foregoing does not authorize an Independent Consultant may not import, sell or distribute Luminess Airess Products from one Authorized Country to another Authorized Country.

8.3 – Sponsor Responsibilities

Sponsors must comply with the terms and conditions of their Independent Consultant Agreement when presenting the Luminess Airess Products and Program to others. Sponsors must provide the complete and current Policies and Procedures to the prospective Consultant prior to submission of a new Independent Consultant Application. Additionally, Prospective Consultants should complete and submit the Independent Consultant Application online through www.luminessairess.com. Sponsors must explain to prospective Consultants that the only required purchase to become an Independent Consultant is a Starter Kit (except North Dakota where the purchase of a Starter Kit is optional) and that the purchase of additional programs is optional. Sponsors are not required to maintain any inventory of Luminess Airess Products or Luminess Airess Business Supplies for new Consultants. Sponsors are also responsible for educating Downline Independent Consultants regarding the Policies and Procedures and should direct them to the Luminess Airess for additional assistance.

Experience has shown that Sponsors meet with limited success when they do not assist their sponsored Independent Consultants in their Downline to develop their new Independent Consultantships. Sponsors are therefore encouraged to help new Independent Consultants grow their Independent Consultantships by:

  1. Training and communicating with their Downlines to avoid illegal or inappropriate conduct, including improper Luminess Airess Product and income claims;
  2. Maintaining ongoing contact and communication, including written correspondence, personal meetings, telephone contact, voice mail, email and training sessions; and
  3. Motivating and training their sponsored Independent Consultants regarding Luminess Luminess Airess Products, effective sales techniques, the Compensation Plan and compliance with the Policies and Procedures.

8.4 - Applicant Rights and Responsibilities

New Independent Consultants are responsible for learning their rights and obligations under the Independent Consultant Agreement. This includes performing their own research to learn and understand the Program and to choose a Sponsor. Luminess Airess strongly encourages any prospective Independent Consultant to enroll in the Program under the Sponsor who introduced such Applicant to the Program. Ultimately, however, every Independent Consultant, may choose who his/her Sponsor will be. If an individual asks to be registered under another Sponsor prior to submitting an Independent Consultant Application, Company reserves the right to honor such request.

Notwithstanding the foregoing, if a Preferred Customer desires to become an Independent Consultant, he/she must either: (i) apply as an Independent Consultant under the Independent Consultant with whom he/she originally enrolled as a Preferred Customer; or (ii) close his/her account and wait a total of ninety (90) days before enrolling as an Independent Consultant with a different Sponsor. If two Independent Consultants both claim to be the Sponsor of an Applicant, Company shall deem the first Independent Consultant Application received by Company as the controlling Independent Consultant Application and shall utilize the Sponsor listed on such Application. Resolving disputes between Independent Consultants regarding claims of Sponsorship of another Independent Consultant is extremely difficult, particularly when a Downline organization is implicated. Company reserves the sole and exclusive right to determine the final disposition of such disputes. Therefore, INDEPENDENT CONSULTANTS WAIVE ANY AND ALL CLAIMS AGAINST LUMINESS AIRESS, LLC, ITS OWNERS, SHAREHOLDERS, MEMBERS, MANAGERS, DIRECTORS, OFFICERS, EMPLOYEES, PARENTS, SUBSIDIARIES, AFFILIATES, AGENTS AND REPRESENTATIVES THAT RELATE TO OR ARISE FROM LUMINESS AIRESS, LLC’S DECISION REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION THAT IS IMPLICATED IN A DISPUTE BETWEEN INDEPENDENT CONSULTANTS REGARDING CLAIMS OF SPONSORSHIP.

8.5 - Cross-Sponsoring / Line Switching

Cross sponsoring occurs when an Independent Consultant knowingly enrolls (or attempts to enroll) another Independent Consultant or a former Independent Consultant under his/her when that Independent Consultant is enrolled in a different Line of Sponsorship, or the former Independent Consultant was enrolled in a different Line of Sponsorship within the past six (6) months. This behavior is strictly prohibited. The use of any real or fictitious name, identification, or identification number in an effort to circumvent this policy is considered fraudulent behavior and will not be tolerated.

Each Independent Consultant may have only one Sponsor and no Independent Consultant shall sponsor or attempt to sponsor any person or Business Entity that has already submitted an Independent Consultant Application to Company or that has had an Independent Consultantship terminated within the preceding six (6) months (or any Business Entity that is controlled by such a person or Business Entity). This practice, known as “Line Switching,” is strictly prohibited, as is any attempt to circumvent the prohibition on Line Switching through the use of pseudonyms or assumed names, a spouse’s or relative’s name, trade names, DBAs or Business Entities. An Independent Consultant is not permitted to encourage, offer or assist any other Independent Consultant to change Sponsors or Uplines. Under no circumstance shall any Independent Consultant offer or provide any financial or other consideration or incentive to another Independent Consultant in exchange for such other Independent Consultant’s agreement to terminate his/her existing Independent Consultantship and re-apply under another Sponsor. Once an Independent Consultant is sponsored, Company requires that the relationship between the Independent Consultant and his/her Sponsor be maintained and protected.

If an Independent Consultant wishes to change Sponsors, the Independent Consultant may do so only if he/she (i) terminates his/her Independent Consultant Agreement and Independent Consultantship by written notice to Company as provided herein; (ii) does not participate in the Program in any capacity for six (6) consecutive months after the effective date of such termination; and (iii) re-applies to become a new Independent Consultant after such six (6) month period and is reaccepted by Company in accordance with the then current Policies and Procedures.

If an Independent Consultant has voluntarily terminated his/her Independent Consultantship and chooses to re-enroll as an Independent Consultant within six (6) months of such voluntary termination, such Independent Consultant’s Sponsor, upon re-enrollment, shall be his/her previous Sponsor (if such person is still an Independent Consultant for Company). The same rules apply for an Independent Consultant who is involuntarily terminated and is later approved by Company to re-enroll.

In cases wherein an Independent Consultant enrollment has occurred due to mistake, inadvertence or error, the new Independent Consultant must notify the Sales Support Department within two (2) Business Days of the enrollment to request a correction of the original enrollment Sponsor. If two (2) Independent Consultants both claim to be the Sponsor of an Applicant, Company shall regard the first Independent Consultant Application received by Company as the controlling Application and shall designate the Independent Consultant listed as the Sponsor on such Application as the Applicant’s Sponsor. Resolving disputes between Independent Consultants regarding claims of Sponsorship of another Independent Consultant is extremely difficult, particularly when a Downline organization is implicated. Luminess Airess, LLC reserves the sole and exclusive right to determine the final disposition of such disputes. Therefore, INDEPENDENT CONSULTANTS WAIVE ANY AND ALL CLAIMS AGAINST LUMINESS AIRESS, LLC AND ITS OWNERS, SHAREHOLDERS, MEMBERS, MANAGERS, DIRECTORS, OFFICERS, EMPLOYEES, PARENTS, SUBSIDIARIES, AFFILIATES, AGENTS AND REPRESENTATIVES THAT RELATE TO OR ARISE FROM LUMINESS AIRESS, LLC’S DECISION REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION THAT IS IMPLICATED IN A DISPUTE BETWEEN INDEPENDENT CONSULTANTS REGARDING CLAIMS OF SPONSORSHIP.

Independent Consultants discovering cases of cross sponsoring or line switching must immediately report this activity to Luminess Airess via the Airess Order Admin System. When cross sponsoring or line switching occurs, it is Company’s right to take disciplinary action against the offending Independent Consultant, as well as any Independent Consultants who encouraged or participated in the unauthorized conduct in any way. Company may also choose to restore or move all or part of the offending Independent Consultant's Downline back to his/her original Downline organization at its sole discretion. INDEPENDENT CONSULTANTS INVOLVED IN CROSS SPONSORING AND LINE SWITCHING WAIVE ANY AND ALL CLAIMS AND CAUSES OF ACTION AGAINST LUMINESS AIRESS, LLC AND ITS OWNERS, SHAREHOLDERS, MEMBERS, MANAGERS, DIRECTORS, OFFICERS, EMPLOYEES, PARENTS, SUBSIDIARIES, AFFILIATES, AGENTS AND REPRESENTATIVES THAT RELATE TO OR ARISE FROM THE DISPOSITION OF THE CROSS-SPONSORED INDEPENDENT CONSULTANT’S DOWNLINE ORGANIZATION.

SECTION 9: ORDERING AND SHIPPING

9.1 – Placing Orders

Purchases of all Luminess Airess Products, Luminess Airess Marketing Materials (including business cards), and Luminess Airess Business Supplies must be purchased from Luminess Airess or its approved third party suppliers. Orders may be placed via the Luminess Airess Site, the Airess Order Admin System, or by telephone. All orders are subject to acceptance by Luminess Airess and its applicable third party suppliers. Email confirmations for orders are typically generated within fifteen (15) minutes. If an email confirmation for an order is not generated, the Independent Consultant should contact the Company to inquire into a potential problem with the order.

9.2 – Independent Consultant Identification Number

All orders must be placed under each Independent Consultant’s own personal Identification Number and credit card. Using another Independent Consultant’s Identification Number or using another individual’s, Customer’s, or Independent Consultant’s credit card without the holder’s express written consent is strictly prohibited.

9.3 - Shipping Charges

Shipping charges will be applied on applicable orders and will be automatically included.

9.4 - Commission Period

Independent Consultants receive credit for every order placed during the Commission Period in which the order was placed. Payment must be processed by 11:59 p.m. EST on the last day of the month to receive credit for a particular month. Independent Consultants are responsible for monitoring their Sales Volume and reporting any inaccuracies within twenty-four (24) hours after the last day of the month. Company shall not be liable for incorrect, incomplete, lost or mailed orders.

SECTION 10: PAYMENT

10.1 – Account Maintenance / Insufficient Funds

Independent Consultant is solely responsible for ensuring that there are sufficient funds or credit available in Independent Consultant’s account to cover orders and remitting all payments due in a timely manner. Should an Independent Consultant’s account become delinquent, Independent Consultant will be responsible for (and shall indemnify and hold harmless Luminess Airess from and against) all costs and fees incurred by Company in collecting the amount due. Independent Consultant expressly acknowledges and agrees to allow Company to deduct any amounts due and any such costs and fees from Independent Consultant’s account and/or any Commissions, Bonuses or other amounts due to Independent Consultant.

10.2 – Forms of Payment

Company accepts payments by eCheck, debit and credit card, including Visa, Master Card, Discover Card, or American Express.

10.3 - Restrictions on Third Party Use of Credit Cards and Checking Account Access

An Independent Consultant is not permitted to allow other Independent Consultants or Customers to use the Independent Consultant’s credit card, debit card, or bank account(s) to enroll in or make purchases from Company.

10.4 - Sales Tax

In jurisdictions in which Company is subject to sales for sales tax purposes, and where possible, Company is the “final retailer” and effectively collects, files and remits the tax to the appropriate state and local taxing agency on behalf of each Independent Consultant. Company collects sales tax based upon the suggested retail price of the Luminess Airess Products which are generally regarded as items intended to be resold. Sales tax on Luminess Airess Products and services which are generally not intended to be resold (for example Starter Kits) are calculated based on their purchase price. However, if an Independent Consultant resells any such items for a higher price, it is the Independent Consultant’s responsibility to collect and remit sales tax to the appropriate state and local tax agency. The rate of tax is based on the place of the sales transaction, which is generally considered the applicable “Ship To” address. If an Independent Consultant sells Luminess Airess Products in another jurisdiction, it is Independent Consultant’s duty to collect and remit any additional applicable sales tax. If an Independent Consultant has submitted, and Company has accepted, a valid sales tax exemption/resale certificate, Company will cease charging sales tax on the Independent Consultant’s direct purchase of Luminess Airess Products and services going forward and it shall be the Independent Consultant’s responsibility to collect and remit sales tax to the appropriate state and local tax agency.

SECTION 11: SHIPPING

11.1 - General

Company will use reasonable efforts to fill and ship orders that it has accepted and processed. Company will use the carrier of its choosing and ship orders to the street address specified in the order. Risk of loss or damage shall pass to the ordering Independent Consultant upon the carrier’s confirmation of delivery to the specified address. Orders are shipped on Business Days only. Approximately two (2) Business Days should be anticipated for order processing and an additional five to seven (5-7) Business Days for delivery to addresses within the U.S. Orders can be shipped only to a street address within the fifty (50) United States, the District of Columbia, Puerto Rico, Guam, and in most cases Military APO/FPO/DPO or Military P.O. Box addresses. However, delivery to Military APO/FPO/DPO and Military P.O. Box addresses may require additional time to complete delivery. Company will not be liable for any damages arising from any failure to fill orders or any delay in delivery.

11.2 - Special Handling

Some Luminess Airess Products may require special handling under federal, state and local regulations. The method of shipment in such cases will be dictated by the applicable regulations. Because Company must comply with these regulations, the shipment of some Luminess Airess Products to certain locations may not be possible. Please contact Company for additional shipping information.

11.3 - Shipment to APO/FPO/DPO/PO Boxes

Most Luminess Airess Products may be shipped to Military APO/FPO/DPO or Military P.O. Box addresses, but some restrictions may apply. Orders being sent to Military P.O. Boxes or Military APO/FPO/DPO addresses must be shipped via United States Postal Service and cannot be shipped via overnight or second day service.

11.4 - Shipments to Alaska, Hawaii, Puerto Rico or Guam

Most Luminess Airess Products can be shipped to Alaska, Hawaii, Puerto Rico and Guam, but some restrictions apply and additional shipping charges may apply. Priority shipping methods (overnight or second day service) are not available for certain locations in Alaska or Hawaii.

11.5 - Order Tracking

A Luminess Airess tracking number will generally be provided via a shipment confirmation email within five (5) Business Days. An Independent Consultant (or his/her Customer for whom the order was placed) may contact the Company if such an email is not received for order-tracking information. Once an order has been shipped, the tracking information will be made available via the Airess App and Airess Order Admin System.

11.6 - Non-Deliverable Orders

Orders may sometimes be returned to Company if the carrier is unable to deliver it to the specified shipping address. This may occur because:

  1. The order was not accepted when it was delivered by the carrier;
  2. No one was available to accept delivery for an order requiring a signature; or
  3. Invalid or incorrect shipping information was provided.

If this occurs, Company will refund the order less the cost of shipping and handling, if applicable. “Refused” packages shall be subject to a twenty-five percent (25%) restocking fee. No credit will be given to the Independent Consultant or his/her Upline for the order. If the order has already been credited to the Independent Consultant’s Sales Volume, the credit (and any associated Commissions, Bonuses, or other remuneration) will be cancelled. If the order consisted of a Starter Kit enrollment order, the order cancellation will result in termination of the new Independent Consultant’s account.

11.7 - Cancelled Orders

With the exception of out-of-stock items, Independent Consultants acknowledge and understand that orders cannot be cancelled once they are sent to shipping. Instead, Independent Consultants must utilize the procedures for processing returns. Company will use reasonable efforts to refund orders placed in error.

11.8 - Missing Items

When an item is missing from an order, the Independent Consultant or Customer is requested to review his/her order details online and contact the Company within three (3) Business Days of delivery. If Company determines that the item was not shipped with the original order, it will use reasonable efforts to ship the missing item to the address specified by the Independent Consultant or Customer at no charge within three to five (3-5) Business Days. Out-of-stock items may require a longer period.

11.9 - Out-of-Stock Items

Company implements protocols intended to avoid inventory shortages. However, if an item is unavailable, Independent Consultants will have the option of cancelling the order or waiting for the backordered item to be restocked. Company makes every effort to ensure that an Independent Consultant receives the associated Sales Volume for an out-of-stock item when processing backorders. Independent Consultants opting to cancel an order will not receive the Sales Volume associated with the order but will be promptly refunded.

11.10 - Discontinued Items

Luminess Airess, in its sole discretion, may at any time discontinue the manufacture and/or sale of any Luminess Airess Products or make changes to prices, quality, performance, standards, grades, contents, place of origin or otherwise. Company shall have no liability to any Independent Consultant for such discontinuation or change. Company will no longer accept orders once an item is discontinued. Company will use reasonable efforts to notify Independent Consultants when items have been discontinued.

SECTION 12: RETURNS

12.1 – Procedure for Returns Generally

To return Luminess Airess Products, a Customer or Independent Consultant should call Luminess Airess or request a return online through the Luminess Airess Site or Airess Order Admin System. Only unopened and “resalable” items (see Section 12.5 below) for which a refund is available should be returned. Items returned for which no refund is available will be discarded. Excessive or improper return activity is grounds for Company to terminate an Independent Consultant Agreement.

12.2 - Defective or Damaged Products

There are two (2) options available to a Customer or Independent Consultant receiving Luminess Airess Products that were defective at the time that Company delivered them to the carrier. A Customer or Independent Consultant may request Company to either: (i) replace and ship replacements for the defective items at no additional charge (if available); or (ii) refund the amounts paid for the items by crediting 100% of the purchase price, sales tax, and shipping charges to the credit card used to make the purchase. Company retains the right, in its sole discretion, to arrange an inspection or product pick up for the defective Luminess Airess Product, at no charge to the purchaser. The determination of whether Luminess Airess Product was defective at the time of shipment shall be made by Company in its sole discretion.

12.3 – 30-Day Customer Satisfaction Guarantee

(i) Purchases made through Luminess Airess:

If for any reason a Retail Customer or Preferred Customer is not completely satisfied with any Luminess Airess Product, the unused portion of the Luminess Airess Product may be returned within thirty (30) days from the date of order for a 100% refund of the amount paid for the Luminess Airess Product (including sales tax but excluding shipping charges). Credit will be refunded to the credit card used to make the purchase. Unopened products will have a 25% restocking fee accessed. Make-up is non-returnable and non-refundable unless an error was made by Luminess Airess. If an error was made by Luminess Airess, we will ship out the replacement.

(ii) Resale between an Independent Consultant and a Customer:

For Luminess Airess Product resales directly between an Independent Consultant and a Customer, the Independent Consultant must honor the thirty (30) day Customer Satisfaction Guarantee. Two (2) copies of the retail sales receipt must be provided to the Customer for the resale to be covered under the Customer Satisfaction Guarantee. The cost to return ship the Luminess Airess Products shall be borne by the Customer or Independent Consultant. A separate order may be placed for replacement Luminess Airess Products at the option of the Independent Consultant or Customer.

(iii) Returns of Bulk Purchases:

The Customer Satisfaction Guarantee return policy does not apply to return of bulk orders made for non-compliant purposes. In cases where bulk orders are made for non-compliant purposes (as determined by Company in its sole discretion), bulk orders are final. Non-compliant purchases rendering a sale “final” include without limitation: excessive inventory purchases, purchases to obtain rank, and purchases for resale, whether directly or indirectly, over Internet auction sites or third-party bulletin boards including without limitation eBay, Amazon, or Craigslist. This bulk order return restriction is superseded by the “Right to Cancel” for in-home sales (Section 7.11) and 9.5 “Return of Unsold Inventory” at time of termination (Section 12.4).

(iv) Color Match Guarantee

12.4 - Return of Unsold Inventory by a Terminating Independent Consultant

An Independent Consultant terminating his/her Independent Consultantship may return unsold Luminess Airess Products, Starter Kits, and Company produced promotional materials, sales aids, tools and kits, in the possession of Independent Consultant that he/she personally purchased from Company for resale prior to the date of termination of the Independent Consultantship for up to one (1) year* from date of purchase for a refund if he/she does not wish to sell or use the items and the items are resalable (see Section 12.5 below). Upon Company’s receipt of the returned Luminess Airess Products and confirmation that they are in resalable condition, Company will refund ninety percent (90%) of the original net cost of the resalable items less appropriate set offs and legal claims, if any. The refund will be credited to the same credit card used for the original order or by such other method as determined by Company. If an Independent Consultant has received reimbursement from Company for a Starter Kit through any type of incentive program, he/she will not be eligible for a refund upon termination. *Independent Consultants residing in Maryland, Wyoming, Massachusetts and Puerto Rico may exceed the one (1) year repurchase period, so long as the above-mentioned criteria is met.

12.5 – “Resalable” Items

Luminess Airess Products are considered “resalable” only if they are currently marketable and meet all of the following criteria:

  1. The items are unopened and unused;
  2. The packaging and labeling are current and have not been altered or damaged;
  3. The items have a current shelf life;
  4. The items and their packaging are in such condition that it is commercially reasonable within the trade to sell the items at full price;
  5. The items, at the time of purchase, were not identified by Company as non-returnable, discontinued, expired, special promotion products or seasonal items not subject to Company’s repurchase obligation; and
  6. Starter Kits must meet all of the above requirements and must also have all components of the Starter Kit included in the return.
  7. All makeup products are non refundable and non returnable unless error was made by Luminess Airess.

12.6 - Items Purchased from Third Party Suppliers

Returns for Luminess Airess Marketing Materials, Luminess Airess Business Supplies and other items purchased from third party suppliers will not be processed and accepted by Company.

SECTION 13: ADVERTISING, OWNERSHIP AND USE OF INTELLECTUAL PROPERTY

13.1 – Intellectual Property Ownership

Luminess Air® is the registered trademark of Luminess Direct LLC and is licensed for use by Luminess Airess.

Luminess Airess is the sole and exclusive owner of all right, title and interest in Luminess Airess Trademarks, Luminess Airess Content, and all related intellectual property and proprietary rights. Luminess Airess’ Trademarks and Content are of great value to Company and reflect upon its quality, integrity and service in the industry. Allowing for the licensed use of the Luminess Airess Trademarks and Luminess Airess Content confers strength, professionalism and credibility to Luminess Airess’ Independent Consultants. As such, both Company and its Independent Consultants have a mutual interest in protecting the use of Luminess Airess Trademarks and Luminess Airess Content. Independent Consultants in good standing with the Company may only use the Luminess Airess Trademarks and Luminess Airess Content as permitted by the non-transferrable, non-exclusive license granted under the Independent Consultant Agreement. Any content or trademark visible to the public must be approved Luminess Airess Trademarks and/or Luminess Content provided by Company. See Appendix B for definitions of Luminess Airess Trademarks and Luminess Airess Content.

13.2 – Non-transferrable, Non-Exclusive License

Conditioned upon full compliance with the terms and conditions of the Independent Consultant Agreement, including these Policies and Procedures, Luminess Airess grants each respective Independent Consultant a non-transferable, non-exclusive right during the term of his/her Independent Consultant Agreement to use the Luminess Airess Trademarks and Content solely for the purpose of promoting the Luminess Airess Products and to indicate that the Independent Consultant’s Independent Consultantship is authorized by Luminess Airess. Independent Consultants are not permitted to change or modify Luminess Airess’ Trademarks are Content in any way. The conditional license is terminated upon Company’s termination of the Independent Consultant Agreement.

13.3 – Restrictions on License

Independent Consultants shall not: (i) combine any Luminess Airess Trademark or Luminess Airess Content with any other brand’s tagline, trademark, image, logo or other intellectual property; (ii) use any trademark or service mark confusingly similar to any Luminess Airess Trademark or Luminess Airess Content; (iii) modify any Luminess Airess Trademark or Luminess Airess Content; (iv) remove any Luminess Airess Trademark or Luminess Airess Content from Luminess Airess Products, Luminess Airess Marketing Materials, or Luminess Airess Business Supplies; (v) use or register any domain name that includes any Luminess Airess Trademark, Luminess Airess Content or any mark confusingly similar; (vi) use any Luminess Airess Trademark or Luminess Airess Content in connection with any products other than the genuine Luminess Airess Products; (vii) use any Luminess Airess Trademark or Luminess Airess Content in connection with any other services, businesses or opportunities other than the Independent Consultantship; (viii) register or attempt to register any Luminess Airess Trademark or confusingly similar trademarks in any class of products or services anywhere in the world; or (ix) use any trade name or business name in connection with their Independent Consultantships that includes any Luminess Airess Trademark or Luminess Airess Content.

13.4 – Independent Consultant Release

By entering into the Independent Presenter Agreement, Independent Consultant authorizes Company to use Independent Consultant’s name, photographs, testimonials, and/or likeness in Luminess Airess advertising or promotional materials with no payment or other form of compensation. Additionally, Independent Consultant expressly consents to and authorizes the use and reproduction of any and all photographs or videos taken by or supplied to Company, and further consents to the use and reproduction of any quotes, testimonials, stories, conversations on social networking media for any print or electronic publicity, marketing, or promotional purposes without payment or other form of compensation.

13.5 - Marketing Materials and Business Supplies

Luminess will make available to its Independent Consultants approved Luminess Airess Marketing Materials and Luminess Airess Business Supplies to be used in promoting their Independent Consultantships. These materials are available through the Airess Order Admin System. Independent Consultants may submit additional suggestions to Company for developing new marketing materials. However, Company is under no obligation to provide specially-requested Luminess Airess Marketing Materials or Luminess Airess Business Supplies.

(i) Trademark Merchandise:

Independent Consultants may purchase Company approved merchandise with Luminess Airess Trademarks and logos through the Airess Order Admin System. Independent Consultants are prohibited from adding Luminess Airess Trademarks to any items or merchandise or co-branding Independent Consultant team logos with Luminess Airess Trademarks.

(ii) Marketing Materials:

Independent Consultants are encouraged to use the Luminess Airess Marketing Materials provided by Company. Independent Consultants may not create their own flyers or invitations to advertise or promote the Luminess Airess Products or Program. This is necessary to protect the Luminess Airess brand, the potential intellectual property rights of third parties, and to ensure compliance with direct selling and product-related regulations.

(iii) Video Policy:

  1. Corporate Videos: Luminess Airess may make available corporate videos to advertise and promote the Luminess Airess Products and Program. Independent Consultants utilizing corporate videos may not modify the videos and must re-post them in their entirety. Independent Consultants are solely responsible for ensuring that they are using the most current version.
  2. Personal Videos: Provided no Luminess Airess Trademarks or Luminess Airess Content is utilized, Independent Consultants may post personal videos of their own photos or video clips to share their own story. No other videos may be posted on public forums such as YouTube, public Facebook pages, Twitter, Instagram and the like.
  3. Team Training Videos/Private Forums: Independent Consultants may create personal videos utilizing Luminess Airess Trademarks or Luminess Airess Content solely for the purposes of training active Independent Consultants. The intended audience cannot be consumers or the public at large. They may only be shared on private forums with appropriate privacy settings. Such videos must comply with the Policies and Procedures and contain the following disclaimers, as indicated below:

“This video is not endorsed or sponsored by Luminess Airess. The information and views provided are being made by a Luminess Airess Independent Consultant and are to be viewed only by active Luminess Airess Independent Consultants. This video may not be shared with the general public.”

Additionally, team training videos which refer to Luminess Airess and make implied or express income/lifestyle claims must include the following disclaimer:

“This is my unique story. Actual earnings may vary significantly, and no income is guaranteed. For info re: typical results, search Luminess Airess IDS.”

Videos discussing Luminess Airess Products must include this additional disclaimer:

“Typical results vary and depend on numerous factors, including age, gender, skin type and condition, other products used, health history, climate, lifestyle and diet. Luminess Airess makes no guarantee as to the results that you may experience. Do not use the information provided as a substitute for medical advice.”

The foregoing disclaimers must be provided in their entirety, either verbally or displayed in writing in the video for a reasonable period sufficient to enable the viewer to review the information. It is the Independent Consultant’s responsibility who posts the video to ensure that all of the material posted is compliant with the Policies and Procedures, as well as any Federal, State or local laws. If Independent Consultants use the trademarks, trade names, service marks, copyrights, or intellectual property of any third party in any personal video, it is solely their responsibility to ensure that they have received the proper license to use such intellectual property and to pay the appropriate license fee. Independent Consultant warrants that he/she either owns all the content in the video or is authorized to use any materials not belonging to him/her, including music that requires licensing. If any demands or legal claims are made against Luminess Airess or its officers or employees as a result of an Independent Consultant’s personal video, he/she promises to defend and indemnify Luminess Airess and to be responsible for and assume all financial liability for responding to those claims or demands. No other videos are approved for Independent Consultant use, and Independent Consultants may not create videos that combine personal material with the Luminess Airess Trademarks or Luminess Airess Content except as provided herein.

(iv) Video Streaming:

Independent Consultants may use Facebook Live and other streaming services to share information in real time about Luminess Airess with their team or prospective Customers and Consultants. Independent Consultants may share content including their own personal story and information on Luminess Airess Products or the Program. Independent Consultants hosting such live events must include the same disclaimers required for videos as outlined above. Provided the content is streaming live, it is not otherwise subject to the Video Policy above. This means Independent Consultants may host live streaming events on public forums. However, once the content is saved, it is considered a video and is subject to the Video Policy above. Luminess Airess reserves the right to restrict live video streaming at events sponsored by it, and Independent Consultants must obtain permission before live streaming those events.

(v) Audio and Video Recordings:

Training calls and business presentations may be recorded by participants. If initiated by Luminess Airess, participants will be informed at the beginning of the call whether the call is being recorded. For any call initiated by Independent Consultants, it is the Independent Consultant’s responsibility to ensure that all participants are informed at the start of the call that it is being recorded. Independent Consultants must also ensure that any of the material recorded is compliant with these Policies and Procedures, as well as any Federal, State or local laws.

(vi) Business Presentations:

Independent Consultants may use Business Presentation materials made available by Company through the Airess Order Admin System to promote the Luminess Airess Products and the Program. Corporate business presentations must be reposted in their entirety and may not be modified in any way. It is the Independent Consultants’ responsibility to ensure that they are using the most current version of Luminess Airess Business Presentation materials. Independent Consultants are prohibited from using other business presentation materials.

(vii) Training Tools:

Company encourages Independent Consultants to use the training tools made available by the Company through Airess Order Admin System to advertise or promote the Luminess Airess Products and the Program. Training tools not in compliance with these Policies and Procedures are prohibited.

(viii) Third Party Training:

Third party training sessions must comply with all of the terms and conditions of the Policies and Procedures. Each Independents Consultant is responsible for the content of any third party training session that they sponsor for their Downline teams. Luminess Airess reserves the right to attend any third party training events to ensure compliance with the requirements of the Policies and Procedures.

13.6 – Responsible Advertising

Independent Consultants should engage in marketing activities in responsible, legal and environmentally friendly manner targeted at Customers, potential Customers or potential Independent Consultants. This includes selecting appropriate forums for distribution of advertising and marketing materials, such as bulletin boards, message boards and digital message boards located in public places and private businesses. Independent Consultants should avoid inappropriate forms of advertising which are intrusive and contrary to the quality and integrity of the Luminess Airess brand. Inappropriate forums include without limitation flyers left on car windshields or stapled to telephone poles or any practice on a digital network that is outside the terms and conditions of such digital network or platform.

13.7 – Classifieds / Mass Media Advertising

Independent Consultants are prohibited from advertising Luminess Airess Products or the Program on television, radio, billboards, national print, online publications, through mass mailings or through channels otherwise deemed inappropriate by the Company. Subject to the Policies and Procedures, Independent Consultants may advertise in their local newspaper, community newsletters, and local business directories provided the advertisement does not exceed $500 value (per activity). Ads are encouraged to use such phrases as “join my team” followed by “contact me for more information.” Independent Consultants may not place "help wanted" ads in any newspaper or other directory, nor may any advertisement state or imply that the Independent Consultant is an agent or recruiter for the Company or seeking to employ or hire an individual for the Company. Any newspaper or other advertisement must clearly indicate that the opportunity being presented is that of an independent contractor as an Independent Consultant for Luminess Airess.

13.8 - Selling Via the Internet

Independent Consultants may sell the Luminess Airess Products through the Luminess Airess Site, the Airess Order Admin System, and Airess Personal Websites. Independent Consultants are expressly prohibited from selling Luminess Airess Products directly or indirectly through any other website, including but not limited to Internet auction sites such as eBay or Amazon, or third party bulletin board websites such as Craigslist.

13.9 - Search Engines, Keywords and Meta-Tags

Independent Consultants agree to cooperate with Luminess Airess in its efforts to boost the search rank of Luminess Airess owned sites on search engine results pages (SERPs) in all markets by not competing with the Company for branded keyword terms and phrases; including but not limited to “Luminess,” “Luminess Airess,” and more. Independent Consultants may not bid on or purchase (or encourage or solicit any third party to bid on or purchase) any Luminess Airess Trademark, Luminess Airess Content, or any term containing any Luminess Airess Trademark or Luminess Airess Content as a meta-tag, keyword, paid search term, sponsored advertisement or sponsored link in both global and local markets.

13.10 – Use of Social Networking and Social Media Generally

Company encourages Independent Consultants to join social networking sites and other online forums, discussion groups, and blogs to promote the Luminess Airess brand and to share the benefits of the Luminess Airess Products and Program. Appropriate social networks include without limitation Facebook, Instagram, Pinterest, LinkedIn, and Twitter. Although Independent Consultants may advertise and promote their Independent Consultantships and the Luminess Airess Products through the use of their social networking profiles, no actual sales of Luminess Airess Products may be processed on social networking profiles or groups.

Any profiles created in which Luminess Airess, the Products or the Program are discussed must clearly identify the Independent Consultant as a Luminess Airess Independent Consultant. When participating in such forums, Independent Consultants must avoid inappropriate or offensive comments, images, video, audio, or any otherwise profane, discriminatory or vulgar content. Company shall determine in its sole discretion whether content is offensive. Independent Consultants found to be in violation of this policy will be subject to disciplinary action.

Independent Consultants must comply with the rules of each particular website or network. Federal and state agencies have also established guidelines and rules for what may and may not be communicated. Independent Consultants who provide testimonials on social networking sites and otherwise on the Internet are solely responsible for their content and ensuring that it complies with all applicable laws and regulations.

13.11 - Income and Lifestyle Claims / Disclaimers

Independent Consultants shall not: (i) make any specific income claim that others may realize as an Independent Consultant; (ii) make any guarantee of success; or (iii) suggest that a specific amount of inventory must be purchased at the time of enrollment. Independent Consultants may describe, in general terms, the positive impact of Luminess Airess on their lifestyle or the positive results they have personally experienced from using the Luminess Airess Products so long as the requirements regarding Luminess Airess Product Claims and Income Claims are met. An Independent Consultant making an income or lifestyle claim in conjunction with an image or story posted on social media, must include the following disclaimer in the post:

“This is my unique story; for info re: typical results, click here.”

Or

“This is my unique story; for info re: typical results search ‘Luminess Airess IDS.’”

13.12 - No Deceptive or Fraudulent Posts

Independent Consultants may not make posts that are false, misleading or deceptive. This includes, but is not limited to, false or deceptive postings relating to the Luminess Airess Products, the Program, and/or Independent Consultant information and/or credentials.

13.13 - Spam Linking, Spamdexing and Other Mass-Replicated Methods

Independent Consultants may not use blog spam, spamdexing or any other mass-replicated methods to leave blog comments. Spam linking is defined as multiple consecutive submissions of the same or similar content into blogs, wikis, guest books, websites, or other publically accessible online discussion boards or forums. This includes blog spamming, blog comment spamming, and/or “spamdexing.” Any comments relating to Luminess Airess made on blogs, forums, guest books, or other similar venues must be unique, informative, and relevant.

13.14 - Consultants Are Solely Responsible for Postings

Independent Consultants are personally responsible for their online posts and other online activity related to or referring to Luminess Airess. This includes posts to sites that an Independent Consultant does not own or operate. If a post relates to Luminess Airess and can be traced back to an Independent Consultant, that Independent Consultant is responsible. Likewise, Independent Consultants are also responsible for any postings, including third party posts, which occur on any blog or social media site owned, operated or controlled by the Independent Consultant. Company reserves the right to require the removal of noncompliant or infringing posts from any Independent Consultant’s social media pages within twenty-four (24) hours of notice and demand and Company may terminate the Independent Consultantship of any Independent Consultant who violates this Section.

13.15 - Use of Third Party Intellectual Property:

Independent Consultants are prohibited from utilizing trademarks, trade names, service marks, copyrights, or intellectual property of any third party in any posting unless they have received the proper license to use such intellectual property and paid the appropriate license fee. All third party intellectual property must be properly referenced as the property of the third party, and Independent Consultants must adhere to any restrictions and conditions placed by the owner. Independent Consultants are solely responsible for ensuring compliance with this provision. An Independent Consultant may be personally liable for any violation of this policy should the owner of the intellectual property bring an action.

13.16 – No Harassing, Discriminatory, Defamatory, or Otherwise Offensive Posts

Independent Consultants are prohibited from making any posting, or link to any posting or other material, that:

  1. Is offensive, profane, hateful, threatening, harmful, defamatory, libelous, harassing or discriminatory (whether based on race, ethnicity, creed, religion, gender, sexual orientation, physical disability or otherwise);
  2. Personally attacks any individual, group, or entity;
  3. Contains sexually explicit, obscene or pornographic material;
  4. Encourages or solicits unlawful behavior;
  5. Violates any intellectual property rights of the Company or a third party; or
  6. Is inconsistent with these Policies and Procedures.

13.17 - Social Networking / Independent Websites After License Termination

Upon voluntary or involuntary termination of an Independent Consultant Agreement, an Independent Consultant must cease use of the Luminess Airess name, Luminess Airess Trademarks, Luminess Airess Content, all other intellectual property and all derivatives of such intellectual property in posts and on social media sites. If the Independent Consultant returns to any social media site on which he/she has previously identified as a Luminess Airess Independent Consultant, he/she must conspicuously disclose that he/she is no longer an Independent Consultant for Company.

13.18 – Respect / Professionalism

Independent Consultants should conduct themselves with respect and professionalism on social media sites. Independent Consultants should not engage in rumors or gossip about other individuals, companies or competitive products or services. Independent Consultants should carefully edit their posts for spelling, grammar and punctuation and should also ensure that their posts are truthful and accurate. Negative posts should be immediately reported to the Company via the Airess Order Admin System.

13.19 – Unsolicited Email and Faxes / Mass Emailing

Independent Consultants are not permitted to use or transmit mass or unsolicited faxes or emails or engage in “spamming” to promote Luminess Airess, the Luminess Airess Products, the Program, or the operation of their respective Independent Consultantships. Mailings or faxes are permissible in the following contexts: (i) to people with whom the Independent Consultant has an established business or personal relationship; and (ii) to people who are “opt in” subscribers and who have initiated a request to be included in bulk emailing, newsletter, or other standardized communications. Any email sent by or for an Independent Consultant advertising or promoting the Luminess Airess Products, the Program or the Independent Consultant’s Independent Consultantship must comply with requirements applicable to commercial emailers found in the Controlling the Assault of Non-Solicited Pornography and Marketing Act (“CAN-SPAM”) and the related FTC regulations, and any other applicable laws and regulations.

Without limitation of the preceding paragraph, any electronic messages sent by email, social networking sites or other means by an Independent Consultant advertising or promoting the Luminess Airess Products, the Program or the Independent Consultant’s Independent Consultantship must meet all of the following requirements:

  1. Have a functioning and non-deceptive return email address or fax number;
  2. Clearly identify the Independent Consultant as the sender of the email and as a Luminess Airess Independent Consultant;
  3. Contain a notice that advises the recipient that he/she may reply to the email or fax, via the functioning return email address or fax number, to request that future email or fax solicitations or correspondence not be sent to him or her (a functioning “opt-out” or “unsubscribe” notice);
  4. Include Independent Consultant’s physical mailing address;
  5. Clearly and conspicuously disclose that the message is an advertisement or solicitation; and
  6. Not make use of deceptive subject lines and/or false header information.

If sending such electronic messages, Independent Consultants must promptly honor all opt-out requests, whether received by email, fax, or regular mail.

13.20 - Domain Names and Email Addresses

Independent Consultants may not use or register any domain name or email address that consists of or contains any Luminess Airess Trademark (see Appendix B), Luminess Airess Content, or any mark confusingly similar, except that Independent Consultants may use a domain name or email address only if provided by Company. Company reserves the right to prohibit the use of domain names deemed inappropriate by Company in its sole discretion.

13.21 - Newsletters

Independent Consultants may issue newsletters solely to their Downline for purposes of providing information on meetings, events, motivation and recognition. Independent Consultants may only send newsletters to those within their Downline via the Airess Order Admin System. An Independent Consultant may use Luminess Trademarks or Luminess Content provided by Company in such newsletters. Newsletters issued by an Independent Consultant must:

  1. Clearly identify the Independent Consultant as the publisher and a Luminess Airess Independent Consultant;
  2. Include any appropriate disclaimers;
  3. Not reference earnings based on recruiting or sponsorship activities; and
  4. Not be used to sell, advertise or promote any product, service or program other than the Luminess Airess Products or the Program.

Newsletters may contain optional content available on the Airess Order Admin System provided that the Luminess Airess Content is reproduced exactly as it originally appeared, Company is credited with authorship, and all copyright, trademark and other proprietary notices are reproduced. All “opt-out” requests for newsletters, whether received electronically or otherwise, must be promptly honored. Each Independent Consultant represents and warrants that any material or content that appears in his/her newsletters (other than material or content provided by Company) does not and will not infringe or misappropriate any patent, copyright, trademark, trade secret, publicity, privacy or other rights of any third person and is not and will not be hateful, discriminatory or vulgar.

13.22 - Telephone Advertising

(i) Toll-Free Numbers

An Independent Consultant may use and advertise toll-free telephone numbers for his/her Independent Consultantship if listed in compliance with this Section. An Independent Consultant may not imply that his/her personal toll-free number is a Luminess Airess number or linked to a Luminess Airess office. Additionally, toll-free numbers may not be used in connection with infomercials or any other television programs. Independent Consultants may not use or register any toll-free number that consists of or contains any Luminess Airess Trademark, Luminess Airess Content, or any mark confusingly similar. An Independent Consultant may not answer (or have any phone answering service or device answer) the telephone by saying “Luminess,” “Luminess Airess,” or in any manner that would lead the caller to believe that he/she has reached Luminess Airess or a Luminess Airess office. An Independent Consultant may state that he/she is an Independent Consultant for Luminess Airess.

(ii) Telemarketing

Independent Consultants are not permitted to utilize telemarketing or to make “cold calls” to market Luminess Airess Products or the Program, nor may they use automatic telephone dialing systems or software relative to the operation of their Independent Consultantships. Independent Consultants agree that they shall not place or initiate any outbound telephone calls to any person that delivers any pre-recorded message (a “robocall”) regarding or relating to Luminess Airess Products or Program. Telephone calls placed to a prospective Customer or Consultant (a "prospect") are permissible under the following circumstances:

  1. The Independent Consultant has an established business relationship (or other relationship) with the prospect;
  2. The Independent Consultant receives the prospect’s personal inquiry regarding the Luminess Airess Products or the Program within the three (3) months immediately preceding the date of call;
  3. The Independent Consultant receives written and signed permission from the prospect authorizing the Independent Consultant to call and specifying the telephone number(s) that the Independent Consultant is authorized to call; or
  4. Independent Consultants may call family members, personal friends and acquaintances. An “acquaintance” is someone with whom the individual has had at least a first-hand relationship within the preceding three (3) months. The acquaintance exemption may not apply, however, if an Independent Consultant makes a habit of “card collecting” with everyone he/she meets and subsequently calls them, as the FTC may consider this a form of telemarketing. Therefore if an Independent Consultant engages in calling acquaintances, he/she must do so only on an occasional basis.

13.23 - Personal Videos, Photographs and Recordings of Corporate Events

If any personal photograph, video, audio tape or other recording of Luminess Airess corporate events is posted on the Internet (on any social media site or otherwise), Company reserves the right at its sole discretion to require such personal video, audio tape or other recording to be immediately removed within twenty-four (24) hours of notice and demand and not otherwise displayed. Independent Consultants may distribute, reproduce or post on the Internet videos, photographs or recordings that are made available by Company for use by Independent Consultants. It is the responsibility of Independent Consultants to ensure the material complies with these Policies and Procedures.

13.24 - Sweepstakes, Contests and Giveaways:

As an independent business owner, an Independent Consultant may choose to run a sweepstakes, contest or promotion. However, it is such promotions are regulated by law, and the regulations differ by state. Company strongly recommends that any Independent Consultant considering such a sweepstakes, contest or promotion speak with a lawyer and/or consult the IRS website to ensure adherence to the relevant local laws and IRS reporting requirements. Independent Consultants must expressly indicate that the sweepstakes, contest or promotion is not sponsored or approved by Luminess Airess.

13.25 - Reporting Online Policy Violations

Independent Consultants must work together to promote Luminess Airess in an appropriate manner to maintain brand integrity. An Independent Consultant suspecting a policy violation, should immediately report the incident along with as much information as possible, including detailed descriptions and screenshots, to Luminess Airess by emailing the compliance department at compliance@luminessairess.com or calling (800) 844-6AIRESS .

SECTION 14: COMPENSATION

14.1 - General

Company’s Compensation Plan is attached to these Policies and Procedures as Appendix A and is hereby fully incorporated herein by reference. The Compensation Plan outlines the sales and organizational requirements necessary for Independent Consultants to earn Commissions and Bonuses. The Compensation Plan is based upon each Independent Consultant’s actual collections for sales of qualifying Luminess Airess Products to Customers (“Commissionable Volume”). Independent Consultants fulfilling various Sales Volume thresholds of qualifying Luminess Airess Products are eligible to earn specified Commissions and Bonuses.

14.2 – Payment and Accrual of Commissions and Bonuses

Commissions and/or Bonuses earned by an Independent Consultant will be paid after reaching a minimum balance of $25.00, less any check issuing fee or payment processing fee. If the $25.00 threshold is not met in a given Commission Period, the Commissions and/or Bonuses will be accrued and paid to the Independent Consultant in a later Commission Period after the combined earnings are $25.00 or more. Company may utilize an independent third-party payment processor (“Payment Processor”) to pay Commissions and Bonuses earned by its Independent Consultants under the Compensation Plan. Company reserves the right, in its sole discretion, to make changes or modifications to any contract or arrangement with a Payment Processor at any time. Company will provide notice to its Independent Consultants of any such change. Independent Consultants may view and manage their account balances though Airess Order Admin System or by contacting Company directly. Before any payments will be disbursed, Independent Consultants must provide a signed IRS Form W9 matching the Social Security Number or U.S. tax identification number associated with the Independent Consultantship. INDEPENDENT CONSULTANTS WAIVE ANY AND ALL CLAIMS AGAINST LUMINESS AIRESS, LLC, ITS PAYMENT PROCESSOR(S), AND THEIR OFFICERS, DIRECTORS, OWNERS, MEMBERS, EMPLOYEES, AND AGENTS IN THE EVENT THAT LUMINESS AIRESS, LLC AND/OR ITS PAYMENT PROCESSOR MAKE AN ERROR THAT RESULTS IN AN UNDERPAYMENT OR OVERPAYMENT TO AN INDEPENDENT CONSULTANT, AND EACH INDEPENDENT CONSULTANT AUTHORIZES LUMINESS AIRESS, LLC, THROUGH THE PAYMENT PROCESSOR, TO DEBIT OR CREDIT INDEPENDENT CONSULTANT’S ACCOUNT AS NECESSARY TO CORRECT ERRORS.

  1. Direct Deposit:
    As of August 15th, all commission payments will be made via direct deposit into the Independent Consultant’s bank account.
    As of August 1, 2017, all new consultants will be required to complete their direct deposit information form (located in their back office) and upload a voided check, to be able to receive their monthly earnings check on the 15th of the following month.

14.3 - Commission Period

Each Commission Period under the Compensation Plan is equivalent to one (1) calendar month. Orders placed through the Luminess Airess Site, Airess Order Admin System, and Airess App that are received by 11:59 p.m. E.S.T. on the last day of a Commission Period will be included for that particular Commission Period’s Commission and Bonus calculation. Orders received after the cut-off will be included in the Commission and Bonus calculation for the subsequent Commission Period.

14.4 – Adjustments for Returns

Independent Consultants receive Bonuses and Commissions based upon the actual collections from Commissionable Volume of qualifying Luminess Airess Products sold to Customers. If Luminess Airess Product is returned to Company for a refund or if a credit card chargeback occurs, any Bonuses and Commissions attributable to the Product will be deducted from both payments to the Independent Consultant and to the Upline who received Bonuses and Commissions on the sale of the returned Luminess Airess Product or disputed charge, in the calendar month in which the refund is given, and continuing every Commission Period thereafter until the Bonuses and Commissions are recovered. In addition, the Bonuses and Commissions attributable to the refunded Luminess Airess Product may be deducted from any refunds or credits issued to the Independent Consultant who received the Bonuses and Commissions on the sales of the refunded Luminess Airess Product or disputed charge. In the event an Independent Consultant terminates his/her Independent Consultantship and the Commissions and Bonuses attributable to the returned Luminess Airess Product(s) or disputed charge(s) have not yet been fully recovered by Luminess Airess, the remainder of the outstanding balance may be set off against any earnings amounts owed to the terminated Independent Consultant. Luminess Airess reserves the right to review and terminate any account for frequent, excessive or improper return activity associated with non-defective merchandise.

14.5 - Closure of Inactive Accounts and Unclaimed Commissions, Bonuses and Credits

If an Independent Consultant’s account remains inactive for three (3) consecutive calendar months (i.e., no new deposits or transfers out) and the account has a positive balance, a monthly maintenance fee of $5.00 will be assessed for each month the account is not used, beginning the fourth month of inactivity. Luminess Airess will attempt to notify the Independent Consultant of the fees being imposed by sending notice to the Independent Consultant’s last known email address. Fees imposed on inactive accounts will be deducted from the current balance until the earlier of: (a) the balance on the account equals $0.00, or (b) twelve (12) months of inactivity, at which point the positive balance in an Independent Consultant’s account will be withdrawn and the unclaimed Commissions, Bonuses and other credits will be paid to the appropriate state pursuant to the applicable unclaimed property laws if the monies remain unclaimed for the statutory period under applicable state law. INDEPENDENT CONSULTANTS WAIVE ALL CLAIMS AGAINST LUMINESS AIRESS, LLC, THE PAYMENT PROCESSOR AND THEIR OFFICERS, DIRECTORS, MEMBERS, OWNERS, EMPLOYEES, AND AGENTS RELATING TO THE CLOSURE OF AN INDEPENDENT CONSULTANT’S ACCOUNT OR WITHDRAWAL OF FUNDS, EVEN IF THE LIKELIHOOD OF SUCH DAMAGES OR LOSSES ARE MADE KNOWN TO LUMINESS AIRESS,LLC AND/OR THE PAYMENT PROCESSOR PRIOR TO THE TIME OF THE CANCELLATION OR WITHDRAWAL.

14.6 – Voluntary Suspension

Should special circumstances arise such as pregnancy, adoption, personal illness, family illness, natural disaster, or military deployment which affect an Independent Consultant’s ability to meet minimum sales requirements for an extended period of time, the Independent Consultant may elect to voluntarily suspend his/her Independent Consultant Agreement subject to approval by Company. The Independent Consultant will be required to supply supporting documentation at Company’s request prior to the commencement of the suspension. If the voluntary suspension is granted, the Independent Consultant will be placed on hiatus for up to three (3) months. However, in the case of a military deployment, an Independent Consultant will be placed on hiatus for the longer of four (4) months or the length of the deployment. During this time, the Independent

The Independent Consultant will lose all benefits and privileges during the suspension and no activity can occur (i.e., no orders; no Commissions; no trips earned, etc.), but the Independent Consultant’s Downline and title will remain intact.

SECTION 15: CHANGES IN STRUCTURE OR OWNERSHIP

15.1 – Sale, Transfer, Assignment

Although an Independent Consultantship business is privately owned and independently operated, the sale, transfer, or assignment of an Independent Consultantship requires prior written authorization from Luminess Airess. Luminess Airess will not approve a request for the sale or transfer of an Independent Consultantship if the intention, whether express or implied, is to achieve Line Switching. To prevent a violation of the Line Switching policy, an Independent Consultant who wishes to sell or transfer his/her Independent Consultantship must: (i) have been an active Independent Consultant for at least six (6) months prior to the sale or transfer request; (ii) wait six (6) months before re-enrolling under a different Sponsor; and (iii) have a Downline that consists of annualized earnings of at least $2500.

In addition to the foregoing, in order to sell, transfer, or assign an Independent Consultantship business, the following criteria must be met:

  1. Protection of the existing line of sponsorship must be maintained, and the Independent Consultant wishing to sell or transfer must first give notice of his/her intention to sell or transfer the Independent Consultantship to the immediate Upline Independent Consultant in writing. If the Upline Independent Consultant and the seller finalize a mutually acceptable sale / transfer arrangement, the seller’s Downline will compress (Roll Up) into the Upline Independent Consultant’s existing Downline. If the immediate Upline Independent Consultant and the seller cannot finalize a mutually acceptable sale / transfer arrangement, the seller may then offer to sell/transfer the Independent Consultantship to other parties.
  2. The buyer or transferee must be (or must become) an Independent Consultant. If the buyer is a current Independent Consultant, he/she must terminate his/her existing Independent Consultantship simultaneously with the purchase, transfer, assignment, or acquisition of any interest in the new Independent Consultantship. The buying Independent Consultant’s existing Downline will then compress (Roll Up) to the buying Independent Consultant’s immediate Upline Independent Consultant.
  3. Before the sale, transfer, or assignment can be finalized and approved, any debt or obligations the selling Independent Consultant has with Company must be satisfied.
  4. The selling Independent Consultant must be in good standing and not in violation of any of the terms and conditions of the Independent Consultant Agreement.
  5. Payments will remain in the name of the selling or transferring Independent Consultant until the transfer is approved and processed.

Luminess Airess maintains sole and absolute discretion to approve or deny a sale, transfer, or assignment of an Independent Consultantship. An attempted sale, transfer or assignment without Company’s prior written approval is void. The purchaser of the existing Independent Consultantship business will assume the obligations and position of the selling Independent Consultantship.

15.2 - Divorce/Separation

An Independent Consultantship may be jointly owned and operated by spouses or a common law married couple, whether as individual proprietors or through a Business Entity. However, when a marriage ends in divorce or separation, the situation must be handled equitably in a way that does not adversely affect the interests of the Company or the income of other Independent Consultantships up or down the line of sponsorship. In the event of a divorce or separation, the parties must adopt one of the following methods of operation:

  1. One of the Independent Consultants agrees in writing to: (a) terminate the Independent Consultant Agreement as it applies to him/her; (b) relinquish his/her interest in the Independent Consultantship; and (c) authorize Company to deal directly with and pay all Commissions and Bonuses solely to the non-relinquishing spouse/partner (in which case the terminating Independent Consultant may re-enroll as an Independent Consultant under a new Sponsor without completing the six (6) month period; or
  2. Notwithstanding the divorce or separation, the spouses or common law married couple agree to continue to operate the Independent Consultantship jointly on a “business-as-usual” basis, in which case Company will continue to pay all Commissions and Bonuses and otherwise deal with the spouses and common law married couple in the same manner as it did prior to the divorce or separation. This approach is the default procedure if the parties do not agree on the format set forth in sub-section (a) above.

Under no circumstances will the Downline of any Independent Consultantship of divorcing or separating spouses or common law married couples be divided. Similarly, under no circumstances will Company split Commission or Bonus payments between divorcing or separating spouses or common law married couples. Company will recognize only one Downline and will issue only one commission check per Independent Consultantship per Commission Period. In the event that divorcing or separating spouses and/or common law married couple are unable to resolve a dispute over the disposition of commissions and ownership of the business, the Independent Consultant Agreement will be involuntarily terminated in Company’s sole and absolute discretion. Similarly, if Company determines in its sole discretion that a divorce or separation of Independent Consultants will adversely affect the Independent Consultantship, other Independent Consultants or Company, Luminess Airess may involuntarily terminate the Independent Consultant Agreement of such spousal partnership or Business Entity.

15.3 - Marriage

An individual, who is not currently an Independent Consultant that marries an Independent Consultant may join the spouse’s existing Independent Consultantship. In the case of a Business Entity Consultantship, the new spouse may apply to become a Beneficial Owner of the Business Entity Consultantship. If two (2) Independent Consultants marry, either spouse may elect to join the Independent Consultantship of his/her new spouse. However, an Independent Consultant electing to join his/her spouse’s Independent Consultantship must sell or abandon his/her existing Independent Consultantship. Spouses may only merge their two (2) Independent Consultantships into one if one of the Independent Consultants personally sponsored the other Independent Consultant.

15.4 - Business Entity / Beneficial Ownership Changes

Arrangements must be made when a Business Entity Consultantship undergoes a Change of Beneficial Ownership. “Change of Beneficial Ownership” means the sale, transfer or acquisition of any ownership interest in the Business Entity Consultantship by a new person or entity that did not possess an ownership interest in the Independent Consultantship at the time it was activated by Company. If Luminess Airess determines in its sole discretion that such a Change of Beneficial Ownership will adversely affect the Independent Consultantship, other Independent Consultants, or Company, Luminess Airess may terminate the Business Entity’s Independent Consultant Agreement.

15.5 – Death and Incapacity

(i) Death

In the event of death, an Independent Consultant’s Independent Consultantship may be transferred to the Independent Consultant’s heir, trustee or other beneficiary (“Transferee”) pursuant to a will, trust or other testamentary instrument and subject to the terms and conditions of applicable law, these Policies and Procedures, and Company’s approval. An Independent Consultantship will automatically be terminated should an Independent Consultant die without a will or other testamentary instrument specifically designating a Transferee. An approved Transferee shall be entitled to assume all of the rights and obligations under the applicable Independent Consultant Agreement, including the right to collect Commissions and Bonuses, subject to the terms and conditions of the Policies and Procedures and applicable law. To effectuate a transfer under this Section, a Transferee must:

  1. Provide a court order appointing the executor or trustee of the estate, letters testamentary, or other instruments appointing the executor or trustee;
  2. Provide written instructions from the executor/trustee specifically directing on the disposition of the Independent Consultant’s applicable interest in the Independent Consultantship;
  3. Submit a new Independent Consultant Application and meet all the eligibility requirements to become an Independent Consultant (if the Transferee is a trust, these requirements may be satisfied by the trustee on behalf of the beneficiaries who would not otherwise meet the eligibility and qualification requirements to become an Independent Consultant); and
  4. Comply with the terms and provisions of the Independent Consultant Agreement.

Transferees may request a voluntary suspension while pursuing a transfer under this Section. Notwithstanding the foregoing, if Luminess Airess determines, in its sole discretion, that the Independent Consultantship, other Independent Consultants in the applicable Upline, or Luminess Airess will be adversely affected by reason of such assumption, it may terminate the Independent Consultant Agreement.

(ii) Incapacity

In the event of incapacity, an Independent Consultant’s agent, attorney-in-fact, or legal representative (“Agent”) may act on behalf of such Independent Consultant under an applicable Independent Consultant Agreement, subject to the conditions and requirements of applicable law, these Policies and Procedures, and Company’s approval. Appropriate legal documentation must be submitted to Luminess Airess in connection with any action by an Agent under this Section. In order for an Agent to act on behalf of an incapacitated Independent Consultant, the Agent must:

  1. Provide the power of attorney or other legal instrument authorizing the Agent to act on behalf of the Independent Consultant in a form acceptable to Company; and
  2. Provide such other documents as Company may require in its sole discretion, including, without limitation, an affidavit from the Agent stating that the power of attorney or other legal instrument remains effective at the time it is presented to Luminess Airess and/or an indemnification agreement from the Agent.

Agents may request a voluntary suspension while pursuing an appointment under this Section. Notwithstanding the foregoing, and subject to any limitations of applicable law, an Agent may not act on behalf of an Independent Consultant if Luminess Airess determines, in its sole discretion, that the Independent Consultantship, other Independent Consultants in the applicable Upline, or the Company will be adversely affected by reason of such action.

15.6 – Retirement

Company does not provide retirement benefits to Independent Consultants and Independent Consultants are not permitted to transfer their Independent Consultantships at retirement except as otherwise permitted herein.

15.7 - All Other Transfers by Independent Consultants Prohibited

Except as expressly permitted herein and authorized by Company in writing, Independent Consultants are prohibited from assigning, selling, transferring, or otherwise disposing of, the Independent Consultant Agreement, their Independent Consultantships, or any rights or obligations under the Independent Consultant Agreement, whether voluntarily or involuntarily, by operation of law or otherwise. Any unauthorized assignment of the Independent Consultant Agreement, except as permitted herein and approved by Company, will be null and void.

SECTION 16: INDEPENDENT CONSULTANTSHIP TERMINATION AND SUSPENSION

16.1 - Voluntary Termination

An Independent Consultant may terminate his/her Independent Consultantship at any time regardless of the reason by notifying Luminess Airess of termination. An Independent Consultant may also voluntarily terminate an Independent Consultantship by electing not to renew, or by selling or transferring the Independent Consultantship. The return of a Starter Kit within one (1) year after activation will be considered a voluntary termination by the Independent Consultant. An Independent Consultant who terminates his/her Independent Consultant Agreement on a voluntary basis may seek to re-enroll in the Program in compliance with the terms of these Policies and Procedures and upon approval of the Company.

16.2 - Involuntary Termination

Luminess Airess reserves the right, in its sole discretion, to terminate an Independent Consultant Agreement and the Independent Consultantship of any Independent Consultant who: (i) violates the terms of the Independent Consultant Agreement, including without limitation the provisions of the Independent Consultant Application and these Policies and Procedures; (ii) fails to cooperate in providing requested information or who provides fraudulent information, including without limitation Social Security Number or Federal Tax Identification Number; and/or (iii) performs acts or omissions which Company reasonably deems to be harmful to the interests of other Independent Consultants, to Customers, or to the Company. An involuntary termination shall be effective once notice is sent to Independent Consultant at the last known email address. An Independent Consultant may seek reinstatement in the Program after an involuntary termination after the one (1) year anniversary of the termination date. Company reserves the right to reject any such request in its sole discretion. If Luminess Airess accepts the reinstatement request, the Independent Consultant must complete a new Independent Consultant Agreement and purchase a new Starter Kit. A reinstated Independent Consultant will have no access or rights to any Downline organization that may have existed under his/her prior Independent Consultantship.

16.3 - Effect of Termination

Upon expiration or termination of an Independent Consultant Agreement, the former Independent Consultant shall have no right, title, claim or interest to the Independent Consultantship or Downline that he/she operated, or to the opportunity to receive any Commissions or Bonuses from future sales generated by the Independent Consultantship or Downline. An Independent Consultant whose Independent Consultant Agreement is terminated will lose all rights to participate in or benefit from the Program, including the right to sell the Luminess Airess Products, act as a Sponsor, use any Luminess Airess Trademarks or other Luminess Airess Content for any purpose, and the right to receive future Commissions and Bonuses or other income resulting from sales and other activities of the Independent Consultant’s former Downline. In the event of termination, all licenses granted to the Independent Consultant hereunder, if any, shall automatically terminate, and the terminated Independent Consultant agrees to waive all rights, if any, he/she may have, including but not limited to, property rights, if any, to his/her former Downline and any Commissions, Bonuses, or other incentives from the future sales and activities of the Downline. Former Independent Consultants shall not hold themselves out as Independent Consultants and shall not have the right to sell the Luminess Airess Products, sponsor other Independent Consultants or otherwise participate in the Program. Independent Consultants whose Independent Consultantships are terminated shall receive Commissions and Bonuses for the last full Commission Periods in which they were active and qualified prior to termination (less any amounts owed to Company). Luminess Airess will not be liable to any Independent Consultant for damages of any kind solely as a result of terminating an Independent Consultantship or Independent Consultant, and termination of the Independent Consultant Agreement will be without prejudice to any other right or remedy of Luminess Airess under the Independent Consultant Agreement or applicable law.

16.4 - Re-Enrollment After Voluntary Termination

An Independent Consultant who has voluntarily terminated, either through resignation, non-renewal, or through sale or transfer of the Independent Consultantship may re-enroll as an Independent Consultant by purchasing a Starter Kit and the Independent Consultant will be provided a new Identification Number. An Independent Consultant re-enrolling within six (6) months of the deactivation date must remain under the same Sponsor. If an Independent Consultant wishes to re-enroll more than six (6) months after the deactivation date, he/she may enroll under any Independent Consultant. The Independent Consultant’s Downline organization will remain with the Upline Independent Consultant, which is where it was placed when the Independent Consultant voluntarily terminated.

16.5 - Cessation of Business

Luminess Airess expressly reserves the right to terminate all Independent Consultant Agreements upon thirty (30) days written notice (or upon such shorter notice as required by unforeseen circumstances) in the event it elects to: (i) cease business operations; (ii) dissolve as a business entity; or (iii) terminate distribution of its products via direct selling.

16.6 - Roll-Up of Downline Organization

When a vacancy occurs in a Downline organization due to the termination of an Independent Consultant, all Independent Consultants in the Downline below the terminated Independent Consultant will shift up one level.

16.7 - Downline Growth

If a consultant in your level 3 or 4 downline exceeds a majority share of your entire group, Corporate reserves the right to review the entire group and recommend changes to improve the overall performance of the group.

SECTION 17: GRIEVANCES, AND COMPLAINTS

17.1 – Disciplinary Sanctions

Violation of the Independent Consultant Agreement including without limitation these Policies and Procedures, violation of any common law duty, including without limitation any applicable duty of loyalty, any illegal, fraudulent, deceptive or unethical business conduct, or any act or omission by an Independent Consultant or Independent Consultant’s employees, agents or contractors that, in the sole and absolute discretion of the Company may damage its reputation or goodwill (such damaging act or omission need not be related to the Independent Consultant’s Independent Consultantship business), may result, at Company's sole discretion, in one or more of the following corrective measures:

  1. A coaching email or telephone call;
  2. A written warning or admonition;
  3. A requirement that Independent Consultant take immediate corrective measures;
  4. Imposition of a fine, which may be withheld from Bonuses, Commission payments, and returns;
  5. Loss of rights to one or more Bonus and/or Commission payments or eligibility for other incentive program rewards;
  6. Suspension of Independent Consultant Agreement for one (1) or more Commission Periods;
  7. The removal of some or all of Independent Consultant’s Downline Independent Consultants from the offending Independent Consultant’s Downline organization;
  8. Involuntary termination of the Independent Consultant Agreement;
  9. Permanent or temporary loss of or reduction in current and/or lifetime rank (which may be subsequently re-earned);
  10. Suspension and/or termination of the Independent Consultant’s Airess Personal Website and/or access to Airess Order Admin System; and/or
  11. Any other measure allowed within any portion of the Independent Consultant Agreement or which Company deems appropriate, in its sole and absolute discretion, to equitably resolve injuries caused wholly or in part by the policy violation or other contractual breach.

Should Company implement one or more of the above measures due to a violation of the Independent Consultant Agreement, including these Policies and Procedures, Company will provide notice to the Independent Consultant of the violation and required corrective measure(s). In the case of egregious, recurring, or multiple violations, Company may at its option provide notification of the violation and corrective measure(s) to Independent Consultant’s Sponsor and/or Upline. During Company’s investigation of potential or alleged misconduct, Company may withhold all or part of Independent Consultant’s Bonuses and Commissions. If an Independent Consultantship is cancelled for disciplinary reasons, such Independent Consultant will not be entitled to any Bonus or Commission payments withheld during the investigation period. These remedies are cumulative and Company reserves the right to pursue all available remedies at law including the institution of legal proceedings for monetary and/or equitable relief.

17.2 - Grievances and Complaints

If Independent Consultant has a grievance or complaint with another Independent Consultant regarding any practices or conduct in relationship to his/her Independent Consultantship, the Independent Consultant must first report the problem to his/her Sponsor, who is obligated to review the matter and make an earnest and meaningful attempt to resolve it with the other party's Sponsor and/or Upline. If the matter cannot be resolved, it may be reported in writing to Company. An Independent Consultant may bypass his/her Sponsor and report directly to the Company for complaints or allegations of harassment or other misconduct involving Company employees or representatives. Company will review any relevant facts and claims and will work to resolve the situation. In cases involving fear or threat of serious bodily harm, financial fraud, or other criminal activity, then the Independent Consultant should contact law enforcement authorities and file a police report.

SECTION 18: WARRANTIES; LIMITATION OF LIABILITY; INDEMNIFICATION

18.1 - Warranty; Disclaimer

Company warrants to Independent Consultants that the Luminess Airess Products as and when delivered by Company shall be free from material defects. Company’s sole obligation to Independent Consultants, and Independent Consultants’ sole and exclusive remedy, for breach of this warranty shall be to return any defective Luminess Airess Product and right to receive a replacement or refund as provided under these Policies and Procedures. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, LUMINESS AIRESS, LLC HEREBY DISCLAIMS ALL OTHER WARRANTIES WITH RESPECT TO THE LUMINESS AIRESS PRODUCTS, THE PROGRAM, LUMINESS AIRESS MARKETING MATERIALS, LUMINESS AIRESS BUSINESS SUPPLIES, AND ANY OTHER SUBJECT MATTER OF THE INDEPENDENT CONSULTANT AGREEMENT, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, NONINFRINGEMENT, ACCURACY OR COMPLETENESS OF CONTENT, RESULTS, LACK OF NEGLIGENCE OR LACK OF WORKMANLIKE EFFORT, AND CORRESPONDENCE TO DESCRIPTION.

18.2 - Limitation of Liability

NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY OR ANY FAILURE OF ESSENTIAL PURPOSE, IN NO CASE SHALL INDEPENDENT CONSULTANT OR LUMINESS AIRESS, LLC OR ITS OWNERS, SHAREHOLDERS, MEMBERS, MANAGERS, DIRECTORS, OFFICERS, EMPLOYEES, PARENTS, SUBSIDIARIES, AFFILIATES, AGENTS, OR REPRESENTATIVES BE LIABLE TO THE OTHER FOR ANY SPECIAL, INCIDENTAL, INDIRECT, PUNITIVE OR EXEMPLARY, OR CONSEQUENTIAL DAMAGES OF ANY KIND OR NATURE, HOWEVER CAUSED, ARISING OUT OF OR RELATED TO THE INDEPENDENT CONSULTANT AGREEMENT OR THE SUBJECT MATTER HEREOF (INCLUDING BUT NOT LIMITED TO THE LUMINESS AIRESS PRODUCTS, THE PROGRAM, LUMINESS AIRESS MARKETING MATERIALS OR LUMINESS AIRESS BUSINESS SUPPLIES), WHETHER SUCH LIABILITY IS ASSERTED ON THE BASIS OF CONTRACT, TORT OR OTHER THEORY OF LIABILITY (INCLUDING BUT NOT LIMITED TO NEGLIGENCE OR STRICT LIABILITY), OR OTHERWISE, EVEN IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

18.3 –Indemnification / Defend / Hold Harmless

Independent Consultant agrees for himself/herself/itself and his/her/its agents, representatives, executors, administrators, successors, assignees or heirs, to indemnify, defend and hold harmless Luminess Airess, LLC and its owners, shareholders, members, managers, directors, officers, employees, parents, subsidiaries, affiliates, agents, representatives, and attorneys (“Luminess Indemnified Parties”) from any losses or damages, including attorneys’ fees and court costs, they may suffer or incur as a result of: (i) Breach of the Independent Consultant Agreement, including these Policies and Procedures; (ii) The improper promotion or operation of Independent Consultant’s Independent Consultantship business and any related activities, including without limitation the presentation of Luminess Airess Products or the Program, the operation of a motor vehicle, and the lease of meeting or training facilities; (iii) Any incorrect data or information provided by Independent Consultant to Company; or (iv) Failure to provide any information or data necessary for Company to operate its business. Without limitation to the foregoing, each Independent Consultant shall specifically indemnify the Luminess Indemnified Parties against any losses or liabilities they may suffer or incur as a result of Independent Consultant being deemed an employee or agent or holding any status other than an independent contractor and such Independent Consultant’s tax liabilities.

SECTION 19: DISPUTE RESOLUTION

19.1 – Notice / Good Faith Negotiation

If any controversy, claim or dispute arises between Independent Consultant and Company, including without limitation those arising out of or relating to the Independent Consultant Agreement including these Policies and Procedures or a breach thereof, the sale, purchase or use of the Luminess Airess Products, Luminess Airess Content, or Luminess Site and the products, services, tools, software, applications, functionality or features offered or made available on or through the Site, or the commercial, economic or other relationship between Independent Consultant and Luminess Airess, LLC, whether such claim is based on rights, privileges or interests recognized by or based upon statute, contract, tort, common law or otherwise (“Dispute”), the parties agree to settle it through negotiation, mediation or arbitration as provided herein. The parties shall first attempt in good faith to resolve a Dispute promptly by negotiation. Any of the parties involved in the Dispute may initiate negotiation by providing notice (the “Dispute Notice”) to each involved party setting forth the subject of the Dispute and the relief sought by the party providing the Dispute Notice, and designating a representative who has full authority to negotiate and settle the Dispute. Each recipient of the Dispute Notice shall respond within ten (10) days with notice of the recipient’s position on and recommend solution to the Dispute and designating a representative with full authority to negotiate and Settle. The designated representatives of the parties shall confer within twenty (20) days at a mutually acceptable time and place or by phone, and thereafter as often as they deem reasonably necessary to attempt to resolve the Dispute.

19.2 - Mediation

At any time after twenty (20) Business Days from when the Dispute Notice is provided, but prior to the initiation of arbitration, and regardless of whether negotiations are continuing, any party may submit the Dispute to the American Arbitration Association (“AAA”) for non-binding mediation by providing notice of such request to all other concerned parties and providing such notice and a copy of all relevant Dispute Notices and notices responding thereto to the AAA. In such case, the parties shall cooperate with the AAA and with one another in selecting a mediator and in promptly scheduling the mediation proceedings, and shall participate in good faith in the mediation either in person at a mutually acceptable time and place or by telephone, in accordance with the then-prevailing AAA mediation procedures and this Section, which shall control. The mediation shall occur within sixty (60) days from the date on which the mediator is appointed. The mediator’s fees and costs, as well as the costs of holding and conducting the mediation, shall be divided equally between the parties. Each party shall pay its portion of the anticipated shared fees and costs at least ten (10) days in advance of the mediation. Each party shall pay its own attorney’s fees, costs, and individual expenses associated with conducting and attending the mediation. Mediation shall be held in the City of Houston, Texas and shall last no more than two (2) business days.

19.3 - Arbitration

If negotiation and mediation are unsuccessful, any Dispute shall be settled exclusively by mandatory final, binding arbitration. The parties waive all rights to trial by jury or to any court. The arbitration shall be filed with, and administered by AAA under the then-current Commercial Arbitration Rules and Mediation Procedures of the AAA. No party may commence Arbitration with respect to any Dispute unless that party has pursued negotiation and, if requested, mediation, as provided herein. However, no party shall be obligated to continue to participate in negation or mediation if the parties have not resolved the Dispute in writing within sixty (60) Business Days after the Dispute Notice was proved to any party. Unless otherwise agreed by the parties, any mediator who has provided mediation services for the Dispute shall be disqualified from serving as arbitrator on the case. The arbitrator shall not have power to alter, modify, amend, add or subtract from any provision of the Independent Consultant Agreement, or to rule upon or grant any extension, renewal or continuance of the Independent Consultant Agreement. The arbitrator shall not have the power to award special, incidental, indirect punitive or exemplary or consequential damage of any kind or nature, however caused. Notwithstanding the rules of AAA, the following shall apply to all arbitration actions:

  1. The Federal Rules of Evidence shall apply in all cases;
  2. The parties shall be entitled to all discovery rights permitted by the Federal Rules of Civil Procedure;
  3. The parties shall be entitled to bring motions under Rules 12 and/or 56 of the Federal Rules of Civil Procedure;
  4. The arbitration shall occur within 180 days from the date on which the arbitrator is appointed, and shall last no more than five(5) business days; and
  5. The parties shall be allotted equal time to present their respective cases, including cross- examinations.

There shall be one (1) arbitrator selected from the panel that the Alternate Dispute Resolution service provides. 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 arbitrate shall survive the cancellation or termination of the Independent Consultant Agreement.

NEGOTIATION, MEDIATION OR ARBITRATION OF ANY DISPUTE SHALL NOT INCLUDE CLASS, COLLECTIVE OR REPRESENTATIVE ACTIONS AND SHALL BE LIMITED TO INDIVIDUAL RELIEF ONLY. INDEPENDENT CONSULTANT EXPRESSLY ACKNOWLEDGES THAT ARBITRATION IS MANDATORY AND BINDING AS TO ALL DISPUTES. THE PARTIES ACKNOWLEDGE THAT EACH IS WAIVING THE RIGHT TO TRIAL BY JURY OR TO PARTICIPATE IN A CLASS, COLLECTIVE OR OTHER REPRESENTATIVE ACTION. THE ARBITRATION IS FINAL AND THE DECISION CANNOT BE APPEALED. TEXAS WILL BE THE EXCLUSIVE VENUE FOR ARBITRATION OF ALL DISPUTES.

19.4 – Confidentiality of Dispute Resolution Communications

All communications, whether oral, written or electronic, in any negotiation, mediation or arbitration shall be treated as confidential and those made in the course of negotiation or mediation, including any offer, promise or other statement, whether made by any of the parties, their agents, employees, experts, or attorneys, or by the mediator or any AAA employee, shall also be treated as a compromise and settlement negotiation for purposes of applicable rules of evidence and shall be inadmissible for any purpose, including impeachment, in any arbitration or other proceeding involving the parties, provided that evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in negotiation or mediation. The parties and the arbitrator shall maintain the confidentiality of the entire arbitration process and shall not disclose to any person not directly involved in the arbitration process:

  1. The substance of, or basis for, the controversy, dispute, or claim;
  2. The content of any testimony or other evidence presented at an arbitration hearing or obtained through discovery in arbitration;
  3. The terms or amount of any arbitration award; or
  4. The rulings of the arbitrator on the procedural and/or substantive issues involved in the case.

19.5 – Specific Performance and Equitable Relief

Notwithstanding the foregoing, nothing in these Policies and Procedures shall prevent either party from applying to and obtaining from any court having jurisdiction provisional relief concerning the Dispute, including without limitation a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction, or other relief available to safeguard and protect its intellectual property rights, to enforce its rights under the non-solicitation provision of the Independent Consultant Agreement, or to compel the other party to comply with this Section. The pendency of negotiation, mediation or arbitration shall not preclude a party from seeking provisional remedies in aid of the arbitration from a court of appropriate jurisdiction, and the parties agree not to defend against any application for provisional relief on the ground that mediation or arbitration is pending. Each party in any proceeding pursuant hereto shall be responsible for its own attorneys’ fees, legal expenses, and costs. If any portion of this Section is held to be unenforceable for any reason, the remainder shall remain in full force and effect. Any amendment to this provision, or to the Dispute Resolution provisions in the Independent Consultant Agreement shall not apply to a dispute arising prior to the effective date of such amendment or to a Consultant who declines to participate in the Program following the effective date of amendment.

19.6 – Third Party Beneficiaries / No Waiver of Defenses by Related Parties

Although the Independent Consultant Agreement is made and entered into between Independent Consultant and Company, Company’s affiliates, owners, members, managers, and employees (“Related Parties”) are intended to be third party beneficiaries of the Independent Consultant Agreement, including for purposes of the indemnity provisions and the agreement to negotiate, mediate and arbitrate. The parties acknowledge that nothing contained herein is intended to create any involvement by, responsibly of, or liability for, the Related Parties with respect to any dealings between Independent Consultant and Company, and the parties further acknowledge that nothing contained herein shall be argued by either of them to constitute any waiver by the Related Parties of any defense that Related Parties may otherwise having concerning whether they can properly be made a party to any dispute between the other parties.

SECTION 20: MISCELLANEOUS

20.1 - Severability

If any provision of the Independent Consultant Agreement is held to be invalid or unenforceable, in whole or in part, the remaining part of such provision and all other provisions of the Independent Consultant Agreement will continue in full force and effect to the maximum extent possible so as to effect the intent of the parties, or if incapable of such enforcement, only such limited portion of the provision that is held to be void or unenforceable shall be deleted from the Independent Consultant Agreement, and the remainder of the Independent Consultant Agreement and such provisions as applied to other persons, places and circumstances will remain in full force and effect.

20.2 - Waivers

Waiver by Company of a breach of or a default under any provision of the Independent Consultant Agreement will not be effective unless in writing and will not be construed as a waiver of any subsequent breach of or default under the same or any other provision of the Independent Consultant Agreement, nor will any delay or omission on the part of Company to exercise or avail itself of any right or remedy that it has or may have hereunder operate as a waiver of any right or remedy.

20.3 - Governing Law, Jurisdiction and Venue

Jurisdiction and venue of any matter not subject to arbitration shall reside in the U.S. District Court for the Southern District of Texas or any state court in Fort Bend County, in the State of Texas. The Federal Arbitration Act and relevant Texas law shall govern all matters relating to arbitration. The laws of the State of Texas shall govern all other matters relating to or arising from the Independent Consultant Agreement without regard to conflicts of law principles. If you reside in Louisiana, the laws of the State of Louisiana shall govern all matters relating to or arising from this Independent Consultant Agreement, and any arbitration may be filed in or removed to Louisiana without objection or opposition by Company. This Agreement is intended to govern the terms and conditions that apply to Luminess Airess, LLC’s Independent Consultants for whom the United States (or its territories) is their Home Country, regardless of any individual’s residence or sales territory. To the extent that any provision of this Independent Consultant Agreement is not enforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event the parties cannot reach mutually agreeable and enforceable replacement for such provision, then: a) such provision shall be stricken from this Independent Consultant Agreement; b) the balance of this Independent Consultant Agreement shall be interpreted as if such provision were excluded; and c) the balance of this Independent Consultant Agreement shall be enforceable in accord with its terms.

20.4 - Right to Use Third Parties

Notwithstanding anything to the contrary in the Independent Consultant Agreement, Company may use Independent Consultants or other contractors in connection with the performance of its obligations and the exercise of its rights under the Independent Consultant Agreement.

20.5 - Force Majeure

Company will not be liable to any Independent Consultant for failure or delay in performing its obligations hereunder if such failure or delay is due to circumstances beyond its reasonable control, including acts of any governmental body, war, insurrection, sabotage, embargo, fire, flood, strike or other labor disturbance, interruption of or delay in transportation, unavailability of or interruption or delay in telecommunications or third party services, or inability to obtain raw materials, supplies, equipment or power needed to perform hereunder.

20.6 - Interpretation

For purposes of interpreting the Independent Consultant Agreement: (i) headings are for reference purposes only and will not be deemed a part of the Independent Consultant Agreement; (ii) unless the context otherwise requires, the singular includes the plural and the plural includes the singular; (iii) unless otherwise specifically stated, the words “herein,” “hereof,” and “hereunder,” and other words of similar import refer to the Independent Consultant Agreement as a whole and not to any particular section or paragraph; and (iv) the words “include” and “including” shall not be construed as terms of limitation and shall therefore mean “including but not limited to” and “including without limitation.”

20.7 - Entire Agreement

The Independent Consultant Agreement, along with all documents incorporated by reference, in their current form and as amended by the Company in its sole discretion, constitute the entire agreement of the parties hereto with respect to its subject matter. The Independent Consultant Agreement supersedes all previous, contemporaneous, inconsistent agreements, negotiations, representations and promises between the parties, written or oral, regarding the subject matter hereunder. There are no oral or written collateral representations, agreements or understandings except as provided herein.

20.8 - Notices

Except as otherwise expressly set forth in the Independent Consultant Agreement, all notices required or permitted by the Independent Consultant Agreement shall be in writing and sent to the party to be notified.

Notices to Luminess Airess shall be sent to: Luminess Airess, LLC 12802 Capricorn Street Stafford, Texas 77477 ATTN: Legal Dept

With a copy to: Meyer, Knight & Williams, LLP 8100 Washington Ave., Ste. 1000 Houston, Texas 77007 ATTN: Aaron P. Lloyd Notices to an Independent Consultant shall be sent to the address on the applicable Independent Consultant Application or updated Independent Consultant Account Profile. All notices shall be delivered by personal delivery, nationally recognized overnight courier (with all fees pre-paid), facsimile or email of a PDF document (with confirmation of transmission), or certified or registered mail (in each case, return receipt requested, postage prepaid). A notice is effective for personal service upon delivery, for mailed notices, upon deposit of properly addressed, sufficiently stamped envelope into the United States mail, and for electronic notices, upon receipt of electronic confirmation of delivery.

APPENDIX A

LUMINESS AIRESS COMPENSATION PLAN

The Luminess Airess Compensation Plan follows. For the most up to date version, please visit the Luminess Airess website at http://luminessairess.com/assets/pdfDocument/EZ-Compensation-Plan-Highlights.pdf

Appendix B: Glossary

Airess Order Admin System

An online enterprise management system designed to support an Independent Consultant. Every Independent Consultant has access to basic account functions, including basic reporting and access to the Company approved training materials, Luminess Airess Marketing Materials, Luminess Airess Product information, and communications. Independent Consultants have the option of enrolling in additional subscriptions for enhanced functionality and business tools.

Airess Personal Website (APW)

Independent Consultants may elect to subscribe to additional programs/features wherein Luminess Airess will provide them with their own Airess Personal Website (APW) from which they can market the Luminess Airess Products and Program.

Applicant

A potential Independent Consultant who has submitted an Independent Consultant Application that is under consideration by Luminess Airess and has yet been neither accepted nor rejected by Luminess Airess.

Airess App

A mobile phone app available to Independent Consultants which can be used to place orders and to access and maintain an Independent Consultant’s account on the Airess Order Admin System.

Bonuses

In addition to earnings available through the Compensation Plan, Independent Consultants also have the opportunity to earn additional income from time to time through Bonuses. Bonuses may be earned by Independent Consultants based on eligibility and performance metrics of the Compensation Plan, at Luminess Airess’ sole discretion.

Business Days

Monday through Friday, excluding holidays observed by Luminess Airess.

Business Entity

A corporation, limited liability company, partnership or trust that has submitted a properly completed Independent Consultant Application that has been approved by Luminess Airess.

Commissions

Any payout to an Independent Consultant based on his or her eligible sales in the Compensation Plan.

Commissionable Volume (CV)

With respect to an Independent Consultant, CV is the commissionable value (generally, but not always, based on the Wholesale Price of Luminess Airess Products) assigned to each commissionable product for calculation of Commissions. These purchases may include those made by:

  1. Independent Consultant’s Preferred Customers;
  2. Independent Consultant’s Downline Independent Consultants; and
  3. Downline Independent Consultants’ Preferred Customers and Retail Customers.

Confidential Information

The confidential and/or proprietary information of Luminess Airess, which includes, but is not limited to, the Performance Reports (Downline Activity) and all information contained in such reports, all Customer Data, and Luminess Airess’ product development plans, pricing, problem reports and performance information, marketing and financial plans and data, and training materials.

Independent Consultant Rate

The price at which Luminess Airess offers the Luminess Airess Products for sale to Independent Consultants, which may be less than the prices offered to Retail Customers and Preferred Customers.

Customer

A person who purchases Luminess Airess Products for the purpose of personally using them rather than for resale to another person.

Customer Data

All data and information submitted by a Customer or potential Customer to an Independent Consultant in connection with a purchase of Luminess Airess Products or otherwise including, without limitation, such Customer’s name, address, phone number and financial account information, products ordered and order volume.

Customer Satisfaction Guarantee

The guarantee that Luminess Airess offers to Customers for all Luminess Airess Products. Under the Customer Satisfaction Guarantee, if for any reason a Customer is not completely satisfied with any Luminess Airess Product, Luminess Airess allows the Customer to return the unused portion within sixty (60) days of purchase for a full refund of the purchase price (less shipping and handling charges). Independent Consultants have certain responsibilities with respect to the Customer Satisfaction Guarantee.

Downline

With respect to any Independent Consultant, the organization consisting of the Independent Consultants directly or indirectly sponsored by or attributed to such Independent Consultant.

Independent Consultation Identification Number

A unique number assigned by Luminess Airess to each Independent Consultant that is used to identify the Independent Consultant in Luminess Airess’ records and computer system. An Independent Consultant’s Identification Number (ID) must be used by that Independent Consultant to identify himself/herself to Luminess Airess in all correspondence with Luminess Airess and may also be required for certain transactions. Independent Consultant may provide his/her ID to Customers, Preferred Customers and business prospects to assist Luminess Airess in connecting the Customers, Preferred Customers and business prospects to the Independent Consultant’s account.

Independent Consultant

Independent Consultants may be an individual, married couple or Business Entity that has:

  1. submitted an Independent Consultant Application that has been accepted by Luminess Airess;
  2. complies with the requirements of the Independent Consultant Agreement, including the obligations set forth in the Policies and Procedures; and
  3. renews its Independent Consultant Agreement annually in accordance with Policies and Procedures.

Independent Consultant Agreement

The legally binding agreement between Luminess Airess and each Independent Consultant consisting of:

  1. a properly completed and submitted Independent Consultant Application that has been accepted by Luminess Airess;
  2. the Policies and Procedures that are incorporated into and form an integral part of the Independent Consultant Agreement; and
  3. if applicable, a properly completed and signed Business Entity Registration Form.

Independent Consultant Application

The official application that must be properly completed and submitted to Luminess Airess by an Applicant to apply to become an Independent Consultant, together with the terms and conditions set forth therein. Each Independent Consultant Application is subject to acceptance or rejection by Luminess Airess in its sole discretion.

Independent Consultant Information

Each Independent Consultant’s name, address, phone number, e-mail address, Social Security Number or Federal Tax Identification Number, date of birth and other information required to be provided in or with an Independent Consultant Application.

Independent Consultantship

An Independent Consultant’s independent business for marketing and selling Luminess Airess Products, as authorized by the Independent Consultant Agreement.

Line Switching

Line Switching is re-enrolling under a different Sponsor in less than a six (6) month period after terminating an account or while still enrolled under a previous Sponsor. Line Switching is strictly prohibited in the Luminess Airess plan. If an Independent Consultant wishes to change Sponsor, Independent Consultant must terminate her or his Independent Consultantship and wait for six (6) months. After six (6) months, the Independent Consultant may re-enroll under a new Sponsor.

Luminess Airess Business Supplies

The business supplies, such as business cards, stationery, etc., that Independent Consultants may purchase from Luminess Airess or its approved suppliers.

Luminess Airess Compensation Plan

The Compensation Plan is attached as Appendix A and is incorporated into the Policies and Procedures.

Luminess Airess Content

Luminess Airess Content includes: (i) all Luminess Airess Trademarks; (ii) all text, images, graphics and other content and materials used or displayed on or in connection with any Luminess Airess Product (or any related packaging), Luminess Airess Marketing Materials, Luminess Airess Business Supplies or the Site; and (iii) the names, images and likenesses of the principals of Luminess Airess.

Luminess Airess Marketing Materials

The advertising, marketing and informational materials that Luminess Airess provides for the Luminess Airess Products and Program from time to time. Certain Luminess Airess Marketing Materials are included in the Starter Kit.

Luminess Airess Products

Luminess Airess skincare products and regimens that Independent Consultants are authorized to sell under the Agreement.

Password

A unique string of numbers and/or letter characters that provides Independent Consultants access to her or his respective accounts on the Site. The Password is required to obtain online performance history records, Performance Reports (Downline Activity), and other information critical to the management of an Independent Consultantship. Passwords are highly confidential and must not be shared with anyone.

Performance Report (Downline Activity)

A report generated by Luminess Airess that provides critical data relating to the identities of an Independent Consultant’s sales and team performance and enrollment (sponsoring) activity of each Independent Consultant’s sales team. All Performance Reports and the data contained therein are the Confidential Information of Luminess Airess.

Policies and Procedures

The policies, procedures, rules, guidelines and other terms and conditions set forth in the document of which this Compensation Plan and Glossary incorporated therein by reference and attached as Appendices A and B thereto are a part (as may be amended from time to time at the sole discretion of Luminess Airess), which, together with the terms and conditions set forth in an Independent Consultant Application accepted by Luminess Airess, constitute the legally binding agreement between Luminess Airess and each Independent Consultant.

Preferred Customer (PC)

A Customer who purchases Luminess Airess Products from the Company through an Independent Consultant and enrolls as a Preferred Customer as part of an auto-replenishment program.

Program

Luminess Airess’ direct sales program for the Luminess Airess Products as described in the Independent Consultant Agreement.

Receipt of Order

An Independent Consultant, Preferred Customer or Consumer accepting delivery of Luminess Airess Products shipped from Luminess Airess.

Retail Customer

A Customer who purchases Luminess Airess Products from or through an Independent Consultant at Suggested Retail Price. Retail Customer volume is attributed to the selling Independent Consultant’s SV and Retail Profit, but no CV is assigned to that Independent Consultant. SV associated with retail sales counts toward Commission qualification for Active Independent Consultants.

Return Authorization Form

The Luminess Airess return form located on the back of a Luminess Airess invoice. If a Customer or Independent Consultant wishes to return a product, this form must be filled out and included with the returned products.

Sales Volume (SV)

With respect to an Independent Consultant, SV consists of: the CV value of such Independent Consultant’s personal purchases (either for personal consumption or for resale to Customers); and the CV value of purchases made directly from Luminess Airess by such Independent Consultant’s Retail Customers. Independent Consultant may not receive Commission on his or her own SV.

Security Breach

A breach of security or an unauthorized disclosure, access, acquisition or use of Customer Data or any Confidential Information of Luminess Airess, including such access or acquisition as a result of theft, hacking or inadvertent error.

Site

The internet site located at the URL address http://www.luminessair.com.

Sponsor

An Independent Consultant who enrolls another Independent Consultant into the Program and is listed as the sponsor on the Independent Consultant Application.

Starter Kit

A portfolio that includes certain Luminess Airess Marketing Materials (which Luminess Airess may change at its sole discretion), an Independent Consultant Application, and a Policies and Procedures manual. Each Applicant is required to purchase a Starter Kit (either by itself or with optional upgrades) at the time he/she submits an Independent Consultant Application to Luminess Airess (except that purchase of a Starter Kit is optional for residents of North Dakota).

Termination

The non-renewal termination, or other voluntary or involuntary termination of an Independent Consultantship following which the former Independent Consultant shall have no right, title, claim or interest to the Independent Consultantship or Downline that she or he operated or to the opportunity to receive any Commissions or Bonuses from the sales generated by such Independent Consultantship or Downline.

Upline

With respect to a specific Independent Consultant, the Independent Consultants who directly or indirectly sponsored said Consultant.

Wholesale Price

As distinguished from the retail price of the Luminess Airess Products, the Wholesale Price is the price at which Luminess Airess Products may be purchased by Independent Consultants under the Program.

APPENDIX C
DSA CODE OF ETHICS

The DSA Code of Ethics follows. For the most up to date version, please visit the DSA website at http://www.dsa.org/ethics/