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Policies & Procedures


January 2018


SECTION 1 - INTRODUCTION 1.1 – Policies and Hacked Snacks Compensation Plan are Incorporated into Hacked Snacks Advocate Agreement These Policies and Procedures, in their present form and as amended at the sole discretion of Hacked Snacks, LLC (hereafter “Hacked Snacks” or the “Company”), are incorporated into, and form an integral part of, the Hacked Snacks Advocate Agreement. As used throughout these Policies and the Agreement, the acronym “Advocate,” “you” or “your” shall refer to Hacked Snacks Advocates. Throughout these Policies, when the term “Agreement” is used, it collectively refers to the Hacked Snacks Advocate Agreement, the Hacked Snacks Policies & Procedures, the Hacked Snacks Compensation Plan (also referred to as the “Compensation Plan”), and the Hacked Snacks Terms and Conditions. These documents are incorporated by reference into the Independent Hacked Snacks Advocate Agreement (all in their current form and as amended by Hacked Snacks). It is the responsibility of each Advocate to read, understand, adhere to, and ensure that he or she is aware of and operating under the most current version of these Policies and Procedures, which can be found at the Company’s official website. 1.2 - Changes to the Agreement Hacked Snacks reserves the right to amend the Agreement and its prices in its sole and absolute discretion. By executing the Agreement, an Advocate agrees to abide by all amendments or modifications that Hacked Snacks makes. Amendments shall be effective 30 days after publication of notice and posting the amended provisions, but amended policies shall not apply retroactively to conduct that occurred prior to the effective date of the amendment. Notification of amendments shall be published by one or more of the following methods: (1) posting on the Company’s official website; (2) electronic mail (email); (3) inclusion in Company periodicals; or (4) special mailings. The continuation of an Advocate’s Hacked Snacks business or an Advocate’s acceptance of bonuses or commissions constitutes acceptance of all amendments. 1.3 - Policies and Provisions Severable If any provision of the Agreement, in its current form or as may be amended, is found to be invalid, or unenforceable for any reason, only the invalid portion(s) of the provision shall be severed and the remaining terms and provisions shall remain in full force and effect. The severed provision, or portion thereof, shall be reformed to reflect the purpose of the provision as closely as possible. 1.4 - Waiver The Company never gives up its right to insist on compliance with the Agreement and with the applicable laws governing the conduct of a business. No failure of Hacked Snacks to exercise any right or power under the Agreement or to insist upon strict compliance by an Advocate with any obligation or provision of the Agreement, and no custom or practice of the parties at variance with the terms of the Agreement, shall constitute a waiver of Hacked Snacks’ right to demand exact compliance with the Agreement. The existence of any claim or cause of action of an Advocate against Hacked Snacks shall not constitute a defense to Hacked Snacks’ enforcement of any term or provision of the Agreement. 2 SECTION 2 - BECOMING AN INDEPENDENT HACKED SNACKS ADVOCATE 2.1 - Requirements to Become an Advocate To become a Hacked Snacks Advocate, each applicant must: ● Be the age of majority in his/her state of residence; ● Reside in the United States or U.S. Territories or country that Hacked Snacks has officially announced is open for business in its direct selling business model; ● Provide Hacked Snacks with his/her valid Social Security or Federal Tax ID number; ● Purchase a Hacked Snacks Starter Kit (optional in North Dakota) or alternative provided option, such as Online Business Tools subscription only; and ● Submit a properly completed Advocate Agreement to Hacked Snacks in online format. Hacked Snacks may provide the Social Security Numbers or Federal Tax Identification Numbers of Advocates to government agencies as reasonably required by law. 2.2 - Product Purchases The Company requires Advocates purchase a Starter Kit as part of the enrollment process. Hacked Snacks will repurchase resalable kits from any Advocate who terminates his or her Advocate Agreement pursuant to the terms of Section 5.2. 2.3 - Advocate Benefits Once an Advocate Agreement has been accepted by Hacked Snacks, the benefits of the Compensation Plan and the Advocate Agreement are available to the new Advocate. These benefits include the right to: ● Sell Hacked Snacks products; ● Participate in the Hacked Snacks Compensation Plan (receive bonuses and commissions, if eligible); ● Sponsor other individuals as Advocates into the Hacked Snacks business and thereby, build a marketing organization and progress through the Hacked Snacks Compensation Plan; ● Receive periodic Hacked Snacks literature and other Hacked Snacks communications; ● Participate in Hacked Snacks-sponsored support, service, training, motivational and recognition functions, upon qualification and/or payment of appropriate charges, if applicable; and ● Participate in promotional and incentive contests and programs sponsored by Hacked Snacks for its Advocates. 2.4 - Term and Renewal of Your Hacked Snacks Business The term of the Advocate Agreement is one year from the date of its acceptance by Hacked Snacks. Each Advocate renews his/her Advocate Agreement each year by meeting the Personal Volume (PV) requirements by the last day of the month in which the anniversary date of such Advocate’s Agreement occurs. If the PV requirement is not met by the last day of the month in which the anniversary date of the Advocate Agreement occurs, (i) the Advocate Agreement of such Advocate will be Cancelled (see Section 8 below). 3 If an Advocate account is terminated, access to the back office and related subscription to that account will also be terminated, including personal websites. No refund or proration for remaining time on the subscription is provided. SECTION 3 - OPERATING A HACKED SNACKS BUSINESS 3.1 - Advocate-Created Recruiting Methods and Tools Advocates are encouraged to create their own original content to enhance and promote their own marketing efforts. Advocates, however, must adhere to the terms of the Hacked Snacks Compensation Plan as set forth in official Hacked Snacks literature. Advocates shall not offer the Hacked Snacks opportunity through, or in combination with, any other system, program, sales tools, or method of marketing other than that specifically set forth in official Hacked Snacks literature. Advocates shall not require or encourage other current or prospective Advocates to execute any agreement or contract other than official Hacked Snacks agreements and contracts in order to become a Hacked Snacks Advocate. Similarly, Advocates shall not require or encourage other current or prospective Advocates to make any purchase from, or payment to, any individual or other entity to participate in the Hacked Snacks Compensation Plan other than those purchases or payments identified as recommended or required in official Hacked Snacks literature. 3.2 - Advertising 3.2.1 - General All Advocates shall safeguard and promote the good reputation of Hacked Snacks and its products. The marketing and promotion of Hacked Snacks, the Hacked Snacks opportunity, the Hacked Snacks Compensation Plan, and Hacked Snacks products must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices. To promote both the products and the tremendous opportunity Hacked Snacks offers, Advocates must use only the recruiting methods, training methods, literature, advertising and promotional material, and websites (“Sales Tools”) produced or approved in writing by Hacked Snacks. The Company has carefully designed its products, product labels, Compensation Plan, and Sales Tools to ensure that they are promoted in fair, truthful manner, that they are substantiated, and the material complies with the legal requirements of federal and state laws. Accordingly, Advocates may only advertise or promote their Hacked Snacks businesses using approved Sales Tools. Hacked Snacks has created business tools, which are available through the Back office, to help Advocates market and sell Hacked Snacks products with consistent brand messaging and to provide a professional image. We encourage all Advocates to use the business tools that are provided. No approval is necessary to use these approved Sales Tools; however, Advocates may not reproduce Hacked Snacks-provided Sales Tools. If you wish to design your own online or offline Sales Tools of any kind (including, without limitation, coupons), your designs must be submitted to the Hacked Snacks compliance department (compliance@hackedsnacks.com) for consideration and potential inclusion in the Document Library. Unless you receive specific written approval from Hacked Snacks to use such Sales Tools, the request shall be deemed denied. 4 Advocates may not sell Sales Tools to other Hacked Snacks Advocates. Therefore, Advocates who receive authorization from Hacked Snacks to produce their own Sales Tools may not sell such Sales Tools to any other Hacked Snacks Advocate. Advocates may make approved Sales Tools available to other Advocates free of charge if they wish, but may not charge other Hacked Snacks Advocates for the Sales Tools. Hacked Snacks further reserves the right to rescind approval, at any time, for any Sales Tools, and Advocates waive all claims for damages or remuneration arising from or relating to such rescission. The Advocate who submitted the Sales Tool to the Company waives all claims to remuneration for such use and grants Hacked Snacks an irrevocable license to use the Sales Tools as the Company deems appropriate. 3.2.2 - Trademarks and Copyrights The name of “Hacked Snacks” and other names as may be adopted by Hacked Snacks are proprietary trade names, trademarks and service marks of Hacked Snacks. As such, these marks are of great value to Hacked Snacks and are licensed to Advocates for their use only in an expressly authorized manner. Hacked Snacks will not allow the use of its trade names, trademarks, designs, or symbols, or any derivatives of such marks, by any person, including Hacked Snacks Advocates, in any unauthorized manner without its prior, written permission. The content of all Company-sponsored events is copyrighted material. Advocates may not produce for sale or distribution any recorded Company events and speeches without written permission from Hacked Snacks, nor may Advocates reproduce for sale or for personal use any recording of Company-produced audio or video tape presentations. As an Advocate, you may use the “Hacked Snacks” name in the following manner Advocate’s Name Independent Hacked Snacks™ Advocate Example: Alice Smith Independent Hacked Snacks™ Advocate Advocates may not use the names “Hacked Snacks” in any form in your Team name, an External Website URL or extension, in a Personal Email Address, in any blog title or address, in any social media title or address (except as set forth in Section 3.3.11 below), or as a personal name or a nickname. For example, you may not secure the domain name www.buyHackedSnacks.com, nor may you create an email address such as HackedSnackssales@hotmail.com. If an Advocate has any External Website URL and/or blog site that includes the words “Hacked Snacks,” the Advocate must assign all rights, title, ownership and control over the URL to Hacked Snacks and must promptly cooperate with Hacked Snacks to execute all documents necessary to assign such rights to the URL to Hacked Snacks. Additionally, Advocates may only identify themselves using the phrase “Independent Hacked Snacks Advocate” in their phone greeting or on their voicemail 5 to clearly separate their independent Hacked Snacks business from Hacked Snacks, LLC. Similarly, in any email communication relating to Hacked Snacks, Advocates must clearly identify themselves as an “Independent Hacked Snacks Advocate.” - Hacked Snacks Advocate Logo If you use a Hacked Snacks logo in any communication, you must use the Independent Advocate version of the Hacked Snacks logo. The Advocate version of the Hacked Snacks logo is available for download in the back office. 3.2.3 - Media and Media Inquiries Advocates may advertise in local publications, but must make sure their ads are accurate, professional, and not misleading in any way. Advocates must always list their Hacked Snacks Advocate website address and use only official Hacked Snacks logos. If an Advocate lists her contact information, he/she must identify himself/herself as an Independent Hacked Snacks Advocate. Advocates may advertise sponsoring opportunity sessions or any other Hacked Snacks events. Advocates may not run advertisements or publicly disseminate coupons that feature specific products on sale, or blanket promotions or discounts, other than Hacked Snackssponsored product sales, promotions or discounts. Advocates must first obtain written permission from the Hacked Snacks Compliance Department (compliance@HackedSnacks.com) before approaching or responding to inquiries from any media outlet (e.g., T.V., radio and internet media sites). This requirement is designed to assure that accurate and consistent information is provided to the public as well as allowing the Company to maintain its desired public image. In the event the Company grants permission for the use of such media, the Company shall have final authority on the production process including, without limitation, full rights to all recordings. 3.2.4 - Unsolicited Email Hacked Snacks does not permit Advocates to send unsolicited commercial emails unless such emails strictly comply with applicable laws and regulations including, without limitation, the federal CAN-SPAM Act. Any unsolicited commercial email sent by an Advocate that promotes Hacked Snacks, the Hacked Snacks opportunity, or Hacked Snacks’ products must comply with the following: ● There must be a functioning return email address to the sender. ● There must be a notice in the email that advises the recipient that he or she may reply to the email, via the functioning return email address, to request that future email solicitations or correspondence not be sent to him or her (a functioning “opt-out” notice). ● The email must include the Advocate’s physical mailing address. ● The email must clearly and conspicuously disclose that the message is an advertisement or solicitation. ● The use of deceptive subject lines and/or false header information is prohibited. ● All opt-out requests, whether received by email or regular mail, must be honored. If an Advocate receives an opt-out request from a recipient of an email, the Advocate must forward the opt-out request to the Company. 6 Hacked Snacks may periodically send commercial emails on behalf of Advocates. By entering into the Advocate Agreement, Advocate agrees that the Company may send such emails and that the Advocate’s physical and email addresses will be included in such emails as outlined above. Advocates shall honor opt-out requests generated as a result of such emails sent by the Company. 3.2.5 - Unsolicited Faxes Except as provided in this section, Advocates may not use or transmit unsolicited faxes in connection with their Hacked Snacks business. The term "unsolicited faxes" means the transmission via telephone facsimile or computer of any material or information advertising or promoting Hacked Snacks, its products, its Compensation Plan or any other aspect of the company which is transmitted to any person, except that these terms do not include a fax: (a) to any person with that person's prior express invitation or permission; or (b) to any person with whom the Advocate has an established business or personal relationship. The term "established business or personal relationship" means a prior or existing relationship formed by a voluntary two-way communication between an Advocate and a person, on the basis of: (a) an inquiry, application, purchase, or transaction by the person regarding products offered by such Advocate; or (b) a personal or familial relationship, which relationship has not been previously terminated by either party. 3.2.6 - Telephone Directory Listings Advocates may list themselves as an “Independent Hacked Snacks Advocate” in the white or yellow pages of the telephone directory, or with online directories, under their own name. No Advocate may place telephone or online directory display ads using Hacked Snacks' name or logo. Advocates may not answer the telephone by saying “Hacked Snacks,” “Hacked Snacks Incorporated,” or in any other manner that would lead the caller to believe that he or she has reached corporate offices of Hacked Snacks. If an Advocate wishes to post his/her name in a telephone or online directory, it must be listed in the following format: Advocate's Name Independent Hacked Snacks™ Advocate 3.3 - Online Conduct 3.3.1 - Personal Websites and Online Business Tools Subscriptions Advocates are provided with a subscription to a variety of Online Business Tools, including a Personal Website by Hacked Snacks, from which they can take orders, enroll new Advocates, a back office to manage their Hacked Snacks business. Advocates receive a Personal Website subscription to facilitate online buying experience for their Customers and enrollments for prospects. Advocates are solely responsible and liable for the content they add to their Personal Website and must regularly review the content to ensure it is accurate, relevant, and does not violate the Terms of Use, Privacy Policy and these Policies and Procedures. By default, a Personal Website URL is: [Advocate Name].HackedSnacks.com. An Advocate may change this default ID (e.g., angelajones.HackedSnacks.com to angelaj.HackedSnacks.com) provided, however, that such Personal Website URL cannot: 7 ● Cause confusion with other portions of the Hacked Snacks corporate website; ● Confuse a reasonable person into thinking they have landed on a Hacked Snacks corporate page; ● Be confused with any Hacked Snacks owned or controlled name; ● Contain any discourteous, misleading, or off-color words or phrases that may damage Hacked Snacks’ reputation; ● Use the terms “Hacked Snacks” or any derivative of this name (e.g., angelasellsHacked Snacks.HackedSnacks.com); or ● Use any geographic identifier in the URL (e.g., “californiaadvocate” or “rockymountainsnacks”), including state abbreviations (e.g., “snacksofca”). Hacked Snacks reserves the right to reject an Advocate’s choice of Personal Website URL names. Any External Website that links to an Advocate’s Personal Website cannot advertise or otherwise promote snack products other than Hacked Snacks products. 3.3.2 - Team Websites Once an Advocate has reached the Bronze rank, you have the opportunity to name your Team and have that name reserved exclusively for you, for the purpose of event recognition and other group recognition, announcements, publicity, etc. To accept this privilege and protection, qualifying Advocates are required to request approval and register their Team name with the Compliance department at compliance@HackedSnacks.com. If you create a team Facebook page or website, we encourage you to keep those groups closed to only your Team and not visible to the public. 3.3.3 - Domain Names, Email Addresses and Online Aliases Except as specifically otherwise allowed herein, you are not allowed to use or register “Hacked Snacks” or any of Hacked Snacks’ trademarks, product names, slogans, tag-lines, or any derivatives of the foregoing, for any Internet domain name (URL or extension) or Personal Email Address. Additionally, you cannot use or register Internet domain names, Personal Email Addresses, and/or online aliases that, in the sole discretion of Hacked Snacks, could cause harm to Hacked Snacks’ reputation, cause confusion, be misleading, be deceptive, or cause individuals to believe or assume the communication is from, or is the property of or authorized by Hacked Snacks corporate. Examples of the improper use of “Hacked Snacks” include, but are not limited to, “msHackedSnacks,” “HackedSnacksbyAmy,” “JackHackedSnacks,” or Hacked Snacks showing up as the sender of an email. Notwithstanding anything to the contrary herein, certain External Website domain names (URLs or extensions) may include “Hacked Snacks” in them if a unique URL is automatically generated by default upon the authorized creation (as outlined in Section 3.3.11 herein) of say, a Facebook “Fan Page” (e.g., http://www.facebook.com/pages/jamie-smith-Independent-Hacked-SnacksAdvocate/987654321123456789?sk=wall) (“Default URL”). Additionally, Hacked Snacks will consider, on a case by case basis, allowing an Advocate to change a Default URL for aesthetic/cosmetic purposes – such that the example provided above could become: www.facebook.com/jsmithindependentHackedSnacksAdvocate, or www.facebook.com/jsmith-independent-Hacked-Snacks-Advocate. Advocates must first obtain approval from Hacked Snacks prior to renaming any Default URL. 8 3.3.4 - Online Bulletin Boards Hacked Snacks recommends that if you post, pin or re-pin any images of Hacked Snacks products, that you pull such original image from the cache of Hacked Snacks-approved templates and images from the back office. Hacked Snacks has spent much time and expense to capture professional images that capture the look and feel of the Hacked Snacks brand image for use by the Advocates as set forth herein. Hacked Snacks reserves the right to deem images or other material posted, pinned or re-pinned on an Advocate’s External Website (including Facebook, Instagram, and Pinterest) not in keeping with Hacked Snacks’ brand image and require that the offending material be removed immediately. 3.3.5 - Online Auctions and Online Retailing Hacked Snacks does not permit Advocates to sell products through marketplaces, such as Amazon, eBay, Etsy, and their own independent websites, etc. 3.3.6 - Banner Advertising Advocates may place banner advertisements on External Websites or third-party websites (as described herein below); provided, however, that they only use Hacked Snacks-approved templates and product images from the back office. Any Hacked Snacks-related banner advertisements on External Websites must link back directly to their Personal Hacked Snacks Websites. Similarly, for Social Media sites such as Pinterest, if an Advocate uses, pins, or re-pins any image that uses the name, image, look-and-feel, etc. of Hacked Snacks and or any Hacked Snacks product or accessory, the Advocate may only link such Advocate’s Personal Website to such image. Notwithstanding the foregoing, Advocates may not use “blind ads” (i.e., ads that do not disclose the identity of the Company) or web pages that make product or income claims that are ultimately associated with Hacked Snacks products or the Hacked Snacks Compensation plan, opportunity or business. 3.3.7 - Spam Linking Spam linking is defined as multiple consecutive submissions of the same or similar content into blogs, wikis, guest books, websites or other publicly accessible online discussion boards or forums and is not allowed. This includes blog spamming, blog comment spamming and/or spamdexing. Any comments you make on blogs, forums, guest books, etc., must be unique, informative and relevant to the issues being discussed therein. 3.3.8 - Digital Media Submissions (e.g., YouTube, iTunes, PhotoBucket, etc.) Advocates may upload, submit or publish Hacked Snacks-related video, audio or photo content to their External Websites that they develop and create so long as it aligns with Hacked Snacks values, contributes positively to the Hacked Snacks community greater good and reputation, as determined by Hacked Snacks in Hacked Snacks’ sole discretion, and does not include the term “Hacked Snacks” in any domain name URL, and is otherwise also in compliance with Hacked Snacks’ Policies and Procedures. All submissions must clearly identify the submitter as an Advocate in the content itself and in the content description tag, must comply with all copyright/legal requirements, and must state that the Advocate is solely responsible for this content. Advocates may not upload, submit or publish any content (video, audio, presentations or any computer files) received from Hacked Snacks or captured at official Hacked Snacks events 9 or in buildings owned or operated by Hacked Snacks without prior written permission, unless such material was obtained directly from the back office. 3.3.9 - Sponsored Links/Pay-Per-Click (PPC) Ads/Paid Search Sponsored links or pay-per-click ads (PPC) are acceptable as described herein. The destination and display URL must be the same. The destination of the PPC must be the External Website, not your Personal Website, and must not portray any URL that could lead the user to believe they are being directed to a Hacked Snacks owned or controlled website, or be inappropriate or misleading in any way. Advocates shall not utilize any of the Company’s trademarks, trade names, and service marks, including, but not limited to, “Hacked Snacks” or any derivation thereof, in search engine marketing (also known as “paid search”), including, but not limited to, Google AdWords and Yahoo! Advertising. 3.3.10 - Social Media and External Websites Advocates are encouraged to create unique content for their social media sites, external websites and posts. Original pictures of Advocates using or posing with Hacked Snacks products, for instance, are useful to promote the Hacked Snacks products to followers or visitors to your sites. External Websites or Social Media websites may be used to consummate the sale of specific Hacked Snacks products, promotions or services as long as they conform to the Online Selling Policy referenced earlier. Profiles an Advocate generates in any social community where Hacked Snacks is discussed or mentioned must clearly identify the Advocate as an “Independent Hacked Snacks Advocate,” and when Advocates participate in those communities, Advocates must avoid any violation of these Policies and Procedures, including, but not limited to, inappropriate conversations, comments, images, video, audio, applications or any other adult, profane, discriminatory or vulgar content. Determination of what is inappropriate is at Hacked Snacks’ sole discretion, and offending Advocates will be subject to disciplinary action. If a link to Hacked Snacks product or accessory MSRP is provided on your External Website, it must link to the posting Advocate’s Company-provided Personal Website. Advocates may not use blog spam, spamdexing or any other mass-replicated methods to leave blog comments. Comments Advocates create or leave online must be useful, unique, relevant and specific to the blog’s article. Banner advertisements used on an Advocate’s External Website must contain then-current Hacked Snacks images and MSRP from the back office. Additionally, Advocates must follow any specific directions given by Hacked Snacks with respect to the publication or other use of such Hacked Snacks product prices and/or images. Advocates may only use Hacked Snacks’ name as specifically authorized herein, including, but not limited to, the creation of the name/title of a Social Media website. For example, when creating a Hacked Snacks-related Social Media External Websites (e.g. a “Fan Page” on Facebook, a Pinterest, Twitter, Flickr or Tumblr account for Hacked Snacks related posts or “pins”), Advocates may only use the following structure when naming such Hacked Snacks-related Social Media External Websites: “[Insert name here] Independent Hacked Snacks Advocate.” 10 For other Hacked Snacks-related Social Media External Websites that the Advocate uses to promote or otherwise reference Hacked Snacks’ name or products, Advocates must inform Hacked Snacks, via e-mail (compliance@HackedSnacks.com), of such Social Media External Websites name/title and URL or Default URL with Hacked Snacks at the time of or prior to such Social Media page’s creation. As a general rule, Advocates may not use any geographic references in the page names/titles or URLs of their Hacked Snacks-related Social Media External Websites. For purposes of clarification and the avoidance of doubt, other than for a Default URL or an approved amendment to a Default URL (see Section 3.3.3), Advocates may not use the terms “Hacked Snacks” or any derivation thereof, in any External Website address or related URL (e.g., www.jillsellsHackedSnacks.com or www.blogspot.hackedsnacksofstlouis.com). Any Personal Email Address (as defined herein) used in connection with the promotion or sales of Hacked Snacks products, or in connection with an Advocate’s Hacked Snacks-related External Websites may not include the name “Hacked Snacks” in it, in any form (e.g., tonsofHacked Snacks@gmail.com or HackedSnacksofnewyork@yahoo.com). Any External Website which contains “Hacked Snacks” or any derivation thereof in the URL, must be transferred to Hacked Snacks or closed/terminated upon demand by Hacked Snacks. In no event may the Advocate sell such domain name to any third party without the prior express written consent of Hacked Snacks. Hacked Snacks reserves the right to deem images or other material posted, pinned or re-pinned on an Advocate’s External Website (including Facebook and Pinterest) not in keeping with Hacked Snacks’ brand image and request the offending material be removed immediately. - Personal Pages/Walls vs. Fan Pages So long as Advocates are abiding by the general guidelines set forth herein with respect to online behavior, including, without limitation, the creation, naming and use of Social Media dedicated websites, Advocates are not prohibited from including Hacked Snacks related posts on their personal Social Media websites (e.g., personal pages/walls on Facebook). However, Advocates must clearly state that they are Independent Hacked Snacks Advocates on their page(s). Advocates are encouraged to create a separate Hacked Snacks related “Fan Page”, or any equivalent Social Media page, to provide a dedicated and separate landing spot for Hacked Snacks related updates, showcase dates and times, approved Hacked Snacks product images, etc., which will, among other things, also allow potential customers to “like” or “follow” an Advocate’s Hacked Snacks related “Fan Page” without an Advocate having to “accept” them as “friends” on your personal Facebook page/wall. Advocates are prohibited from selling and advertising third-party products on all Hacked Snacks related websites and social media pages. Hacked Snacks Advocates are prohibited from posting on their social media pages, blogs or websites about other Network Marketing Activities. - Advocates Are Responsible for Postings Advocates are personally responsible for their online postings and all other online activity that relates to Hacked Snacks. Therefore, even if an Advocate does not own or operate a blog or Social Media site, if an Advocate posts to any such site that relates to Hacked Snacks or which can be traced to Hacked Snacks, the Advocate is responsible for the posting and must act in a way that builds, strengthens and enhances Hacked Snacks’ reputation, image and standing in 11 the community. Advocates are also responsible for postings which occur on any External Website that the Advocate owns, operates, or controls. Furthermore, please note that while Hacked Snacks encourages Advocates to engage in the online Social Media community in an effort to enhance and grow their independent distributorships, each Advocate is solely responsible to strictly adhere to each social media website’s terms of use, policies and procedures, privacy policies, etc. If an Advocate is not comfortable with fully accepting such obligations and potential consequences, they should refrain from using Social Media websites as a platform to grow their Hacked Snacks independent distributorship. - Identification as an Advocate Advocates must disclose their full names on all relevant Social Media profiles that relate to Hacked Snacks and its products or business, and each must conspicuously identify themselves as an “Independent Hacked Snacks Advocate.” Anonymous postings or use of an alias is prohibited. - Social Media as a Promotion Forum External Websites, specifically Social Media sites, are relationship-building sites. While building relationships is an important part of the sales process, Advocates shall not use any Social Media site to explain the Hacked Snacks Compensation Plan or any component thereof. - Deceptive Postings Online postings that are false, misleading, or deceptive are prohibited. This includes, but is not limited to, false or deceptive postings relating to the Hacked Snacks income opportunity, Hacked Snacks’ products, and/or Advocate biographical information and credentials. - Official Hacked Snacks Social Media Pages Hacked Snacks has official Company Social Media pages, such as Facebook. Advocates may not place linking information on Hacked Snacks’ company pages, nor may they post any pricing, promotions, marketing material, sales, advertisements, or announcements relating to their businesses on a Hacked Snacks’ company page. Furthermore, business-related matters and questions should not be posted on any Hacked Snacks’ company pages, but should instead be directed to the Hacked Snacks Field Services or Compliance departments. Hacked Snacks reserves the right to remove any messages posted on the official Company Facebook page as determined in its sole discretion. - Use of Third Party Intellectual Property If you use the trademarks, trade names, service marks, copyrights, or intellectual property of any third party in any online posting, it is your responsibility to ensure that you have received the proper license to use such intellectual property and pay the appropriate license fee. All third-party intellectual property must be properly referenced as the property of the third-party, and you must adhere to any restrictions and conditions that the owner of the intellectual property places on the use of its property. - Respecting Privacy Always respect the privacy of others in your postings. Advocates must not engage in gossip or advance rumors about any individual, company, or competitive products or services. Advocates 12 may not list the names of other individuals or entities on their postings unless they have the written permission of the individual or entity that is the subject of their posting. - Professionalism You must ensure that your postings are truthful and accurate. This requires that you fact-check all material you post online. You should also carefully check your postings for spelling, punctuation, and grammatical errors. Use of offensive language is prohibited. - Prohibited Postings Advocates may not make any postings, or link to any postings or other material that: ● Is sexually explicit, obscene, or pornographic; ● 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); ● Is graphically violent, including any violent video game images; ● Is solicitous of any unlawful behavior; ● Engages in personal attacks on any individual, team, or entity; OR ● Is in violation of any intellectual property rights of the Company or any third party. - Responding to Negative Online Posts Do not converse with one who places a negative post against you, other Advocates, or Hacked Snacks. Report negative posts to the Company at compliance@HackedSnacks.com. Responding to such negative posts often simply fuels a discussion with someone carrying a grudge who does not hold themselves to the same high standards as Hacked Snacks, and therefore damages the reputation and goodwill of Hacked Snacks. - Social Media Sites with External Website-like Features Because some Social Media sites are particularly robust, the distinction between a Social Media site and a website may not be clear-cut. Hacked Snacks therefore reserves the sole and exclusive right to classify certain Social Media websites as “External Websites” and require that Advocates using, or who wish to use, such Social Media websites adhere to the Company’s policies relating to External Websites. - Cancellation of Your Hacked Snacks Business If your Hacked Snacks business is Cancelled for any reason, you must discontinue using the Hacked Snacks name, and all of Hacked Snacks’ trademarks, trade names, service marks, and other intellectual property, and all derivatives of such marks and intellectual property, in any postings and all External Websites that you utilize. If you post on any Social Media site on which you have previously identified yourself as an Independent Hacked Snacks Advocate, you must conspicuously disclose that you are no longer an Independent Hacked Snacks Advocate. 3.4 - Business Entities A corporation, limited liability company, partnership or trust (collectively referred to in this section as a “Business Entity”) may apply to be a Hacked Snacks Advocate by submitting an Advocate Agreement along with a properly completed IRS Form W-9. The Business Entity, as well as all shareholders, members, managers, partners, trustees, or other parties with any ownership 13 interest in, or management responsibilities for, the Business Entity (collectively “Affiliated Parties”) are individually, jointly and severally liable for any indebtedness to Hacked Snacks, compliance with the Hacked Snacks Policies and Procedures, the Hacked Snacks Advocate Agreement, and other obligations to Hacked Snacks. The name of an Advocate Business Entity may not contain the words “Hacked Snacks” or any derivative of the words. To prevent the circumvention of Sections 3.21 (regarding transfers and assignments of a Hacked Snacks business) and 3.5, (regarding Enrolling Advocate Changes), if any Affiliated Party wants to terminate his or her relationship with the Business Entity or Hacked Snacks, the Affiliated Party must terminate his or her affiliation with the Business Entity, notify Hacked Snacks in writing that he or she has terminated his/her affiliation with the Business Entity, and must comply with the provisions of Section 3.21. In addition, the Affiliated Party foregoing their interest in the Business Entity may not participate in any other Hacked Snacks business for six consecutive calendar months in accordance with Section 3.5.2. If the Business Entity wishes to bring on any new Affiliated Party, it must adhere to the requirements of Section 3.21. There is a $25.00 fee for each change requested, which must be included with the written request and the completed Advocate Agreement. Hacked Snacks may, at its discretion, require notarized documents before implementing any changes to a Hacked Snacks business. Please allow thirty (30) days after the receipt of the request by Hacked Snacks for processing. The modifications permitted within the scope of this paragraph do not include a change of Enrolling Advocate. Changes of Enrolling Advocate are addressed in Section 3.5, below. 3.4.1 - Changes to a Business Entity Each Advocate must immediately notify Hacked Snacks of all changes to type of business entity they utilize in operating their businesses and the addition or removal of business Affiliated Parties. 3.5 - Change of Enrolling Advocate The transfer of a Hacked Snacks business from one Enrolling Advocate to another is rarely permitted. Requests for change of Enrolling Advocate must be submitted in writing to the Hacked Snacks Compliance Department and must include the reason for the transfer. Transfers will only be considered in the following circumstances: 3.5.1 - Misplacement In cases in which the new Advocate is sponsored by someone other than the individual he or she was led to believe would be his or her Enrolling Advocate, an Advocate may request that he or she be transferred to another Enrolling Advocate. Requests for transfer under this policy will be evaluated on a case-by-case basis and must be made within fourteen (14) days from the date of enrollment. The Advocate requesting the change has the burden of proving that he or she was placed beneath the wrong Enrolling Advocate. It is up to Hacked Snacks’ sole discretion whether the requested change will be implemented. Whether any additional Advocates in the Enrolling Advocate’s Team will also be moved shall be up to the sole discretion of the Company and will be evaluated on a case-by-case basis. ADVOCATES WAIVE ALL CLAIMS AGAINST HACKED SNACKS, ITS OFFICERS, DIRECTORS, OWNERS, EMPLOYEES, AND AGENTS REGARDING THE COMPANY’S DECISION WHETHER TO ALLOW AN ADVOCATE TO 14 CHANGE ENROLLING ADVOCATES, AND HACKED SNACKS’ DECISION WHETHER TO ALLOW AN ENROLLING ADVOCATE’S TEAM TO BE MOVED. 3.5.2 - Cancellation and Re-application An Advocate may legitimately change Teams by voluntarily Cancelling his or her Hacked Snacks business (which is accomplished by emailing the Hacked Snacks Compliance Department at compliance@HackedSnacks.com) and remaining inactive (i.e., no purchases of Hacked Snacks products for resale, no sales of Hacked Snacks products, no sponsoring, no attendance at any Hacked Snacks functions, no participation in any other form of Advocate activity, no operation of any other Hacked Snacks business, and no income from the Hacked Snacks business) for six (6) full calendar months. Following the six-month period of inactivity, the former Advocate may reapply under a new Enrolling Advocate. However, the former Advocate’s Team will remain in their original Team line and the former Advocate’s Rank will be reset. 3.5.3 - Waiver of Claims In cases where the appropriate Enrolling Advocate change procedures have not been followed, and an Enrolling Advocate develops a Team under a second Enrolling Advocate without following the proper Enrolling Advocate change procedures, Hacked Snacks reserves the sole and exclusive right to determine the final disposition of the Team. Resolving conflicts over the proper placement of a Team that has developed under an organization that has improperly switched Enrolling Advocates is often extremely difficult. Therefore, ADVOCATES WAIVE ANY AND ALL CLAIMS AGAINST HACKED SNACKS, ITS OFFICERS, DIRECTORS, OWNERS, EMPLOYEES, AND AGENTS THAT RELATE TO OR ARISE FROM HACKED SNACKS’ DECISION REGARDING THE DISPOSITION OF ANY TEAM THAT DEVELOPS BELOW AN ORGANIZATION THAT HAS IMPROPERLY CHANGED LINES OF ENROLLING ADVOCATE. 3.5.4 – No Enrolling Advocate With respect to any Advocate who has no Enrolling Advocate or whose Enrolling Advocate is the Company (i.e., an Advocate who is on a Level directly below the Company), such Advocate agrees that the Company, in its sole discretion, has the right at any time to transfer such Advocate and such Advocate’s Team to a position beneath an Enrolling Advocate selected by the Company. 3.6 - Unauthorized Claims and Actions 3.6.1 - Indemnification An Advocate is fully responsible for all of his or her verbal and written statements made regarding Hacked Snacks products, services, and the Compensation Plan that are not expressly contained in official Hacked Snacks 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. Advocates agree to indemnify Hacked Snacks and Hacked Snacks’ directors, officers, employees, and agents, and hold them harmless from all liability including judgments, civil penalties, refunds, attorney fees, court costs, or lost business incurred by Hacked Snacks as a result of the Advocate’s unauthorized representations or actions. This provision shall survive the termination of the Advocate Agreement. 15 3.6.2 - Income Claims Because Advocates do not have the data necessary to comply with the legal requirements for making income claims, an Advocate, when presenting or discussing the Hacked Snacks opportunity or Hacked Snacks Compensation Plan to a prospective Advocate, may not make income projections, income claims, or disclose his or her Hacked Snacks income (including, but not limited to, the showing of checks, copies of checks, bank statements, or tax records). 3.7 - Repackaging and Relabeling Prohibited Hacked Snacks products may only be sold in their original packaging. Advocates may not repackage, relabel, or alter the labels on Hacked Snacks products. Advocates may affix a personalized sticker with their personal/contact information to each product container, as long as they do so without removing existing labels or covering any text, graphics, or other material on the product label. 3.8 - Retail Outlets Advocates may sell Hacked Snack products in small boutique stores (not chain stores or franchise establishments) that are owned by the Advocate, as long as they do not sell competing products. Except as set forth below in this Section 3.8, an Advocate may not (i) sell or deliver Hacked Snacks products at a retail outlet or the surrounding premises or (ii) sell or provide Hacked Snacks products to someone who the Advocate has reason to believe will sell or deliver such Hacked Snacks products at a retail outlet or the surrounding premises. Advocates may hold organized sales events held at a retail outlet, provided that (i) such events are by invitation only, not open to the general public and not advertised in the retail outlet, (ii) such events are held at a predesignated time outside of regular business hours and (iii) the Advocate does not deliver any Hacked Snacks products to Customers at the retail outlet or the surrounding premises. 3.9 - Trade Shows and Other Sales Forums Advocates may display and/or sell Hacked Snacks products at a Tradeshow. A “Tradeshow” is an organized event of a relatively large number of vendors held at a specific location which does not last more than fourteen (14) days over any consecutive sixty (60) day period, at which various products and/or services are displayed, sold or otherwise marketed to attendees. Tradeshows are available to Advocates on a first-to-register basis. Multiple Advocates are not allowed at a single Tradeshow; provided, however, that, to the extent permitted by the Tradeshow administrator, one or more Advocates may, by mutual agreement, share a single booth at a Tradeshow (for example, rotating days or time blocks within a day). Advocates may display and/or take orders for Hacked Snacks products inside a Showroom. A “Showroom” is a room for holding organized sales events at limited, pre-designated times at which invitees to such parties or sales events (and not walk-in customers) may place orders for Hacked Snacks products. The following activities are prohibited at a Showroom or surrounding premises: delivering (e.g., cash-and-carry) Hacked Snacks product to a Customer; displaying Hacked Snacks product in a manner that is visible from outside the Showroom; and displaying signage that indicates that Hacked Snacks product is sold or otherwise promoted in the Showroom. Notwithstanding the foregoing, Advocates may not sell Hacked Snacks products at swap meets, garage sales, flea markets or similar events as these events are not conducive to the quality image Hacked Snacks wishes to portray. Additionally, Advocates may not sell or display non- 16 Hacked Snacks products alongside or in the same display space with Hacked Snacks products at a Tradeshow or Showroom. 3.10 - Conflicts of Interest 3.10.1 - Nonsolicitation Unless otherwise agreed to in writing with the Company, Hacked Snacks Advocates are free to participate, directly or indirectly, in non-Hacked Snacks network marketing, direct sales or multilevel business ventures or marketing opportunities (“Network Marketing Activities”). However, during the term of this Agreement, Advocates may not directly or indirectly Recruit other Hacked Snacks Advocates or Customers for any Network Marketing Activities. Hacked Snacks Advocates are prohibited from posting on their social media pages, blogs or websites about other Network Marketing Activities. Following the Cancellation of an Advocate’s Agreement, and for a period of 12 calendar months thereafter, regardless of the reason for Cancellation, a former Advocate may not Recruit any Hacked Snacks Advocate or Customer for any Network Marketing Activities. Notwithstanding this prohibition, it is permissible for an Advocate to Recruit other Advocates or Customers for Network Marketing Activities during this 12-month period if the Advocate being recruited is either (i) an immediate family member of the Recruiting Advocate; or (ii) an individual whom the Recruiting Advocate knew and with whom he or she had a relationship prior to their mutual involvement with the Company, and not someone with whom the Recruiting Advocate became acquainted by virtue of their mutual involvement as Advocates for the Company. In any dispute or action involving the invocation of this exception, the burden shall be on the Advocate asserting the exception to prove such prior relationship or that the Recruited Advocate otherwise falls within the scope of this exception. Advocates stipulate that because Network Marketing Activities are conducted worldwide, often through networks of independent contractors dispersed across the entire United States and internationally, and business is commonly conducted via the internet and telephone, an effort to narrowly limit the geographic scope of this non-solicitation provision would render it wholly ineffective. Therefore, Advocates agree that this non-solicitation provision shall apply in all countries in which Hacked Snacks conducts business. Advocates agree that the geographic scope applicable to this provision is reasonable and further waives any claim or defense that the nonsolicitation provision is void or voidable based on the breadth of its geographic scope. The term “Recruit” means the actual or attempted sponsorship, solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly (including but not limited to the use of a website), or through a third party, another Hacked Snacks Advocate or Customer to enroll or participate in a Network Marketing Activity. This conduct constitutes recruiting even if the Advocate’s actions are in response to an inquiry or contact made by another Advocate or Customer. Each Advocate stipulates that if he or she violates the terms of this nonsolicitation provision, Hacked Snacks will be irreparably harmed, and calculation of the full extent of Hacked Snacks’ damages will be difficult. Advocate therefore stipulates that for each violation of this nonsolicitation provision, Hacked Snacks shall be entitled to immediate temporary, preliminary, 17 and permanent injunctive relief and liquidated damages from such Advocate in the amount of $2,500.00 USD for each occurrence. Each individual or entity Recruited shall constitute a separate occurrence, and separate instances of Recruiting the same individual or entity shall also constitute separate occurrences. The provisions of this Section 3.10.1 shall survive termination of the Advocate Agreement. 3.10.2 - Advocate Participation in Other Network Marketing Programs If an Advocate is engaged in other non-Hacked Snacks business or Network Marketing Activities, it is the responsibility of the Advocate to ensure that his or her Hacked Snacks business is operated entirely separate and apart from all other businesses and/or Network Marketing Activities. To this end, in addition to the nonsolicitation restrictions contained in Section 3.10.1, the Advocate must adhere to the following: ● Advocates must not sell, or attempt to sell, any non-Hacked Snacks programs, products or services relating to any Network Marketing Activity to Hacked Snacks Customers or Advocates. ● Advocates shall not display Hacked Snacks promotional material, sales aids, products or services with or in the same location as, any non-Hacked Snacks promotional material or sales aids, products or services. ● Advocates shall not offer the Hacked Snacks opportunity, products or services to prospective or existing Customers or Advocates in conjunction with any non-Hacked Snacks program, opportunity, or product. ● Advocates may not offer any non-Hacked Snacks opportunity, products, services or opportunity at any Hacked Snacks-related meeting, seminar, convention, webinar, teleconference, or other function. 3.10.3 - Competing Products Notwithstanding anything to the contrary contained herein, during the term of the Agreement, an Advocate may not, directly or indirectly, sell, represent or promote (either as an owner, employee, independent contractor, consultant, recruiter or in any other manner) any competing snack food, which are not Hacked Snacks products, or lend Advocate’s name to any person, company or entity engaged in any such activity. Each Advocate agrees that any such act, or steps in furtherance of such acts, by any Advocate would cause harm to Hacked Snacks’ business and would be contrary to the intent of the Agreement. Hacked Snacks intends to restrict Advocates under this Section only to the extent necessary for the protection of Hacked Snacks’ legitimate business interests. Each Advocate agrees that the scope, duration, and geographic provisions are reasonable. In the event a court of competent jurisdiction determines that any provision of this Agreement is too restrictive, such provision(s) shall nevertheless be valid and enforceable to the fullest extent permitted by such court, and such provision(s) shall be reformed to the maximum scope, time, or geographic limitations determined appropriate by such court. 3.10.4 - Confidential Information Confidential information includes, but is not limited to, the identities of Hacked Snacks Customers and Advocates, contact information of Hacked Snacks customers and Advocates, Advocates’ personal and/or Team sales volumes, and Advocate rank and/or achievement levels. Confidential 18 Information includes information made available to Advocates in their respective back offices. Advocate access to such Confidential Information is password-protected, and Advocates hereby stipulate and agree that Confidential Information constitutes proprietary business trade secrets belonging to Hacked Snacks. Advocates have no claim, right, or title to any Confidential Information. Such Confidential Information is provided to Advocates in strictest confidence and is made available to Advocates for the sole purpose of assisting Advocates in working with their respective sales Teams in the development of their Hacked Snacks business. Advocates and Hacked Snacks agree that, but for this agreement of confidentiality and nondisclosure, Hacked Snacks would not provide Confidential Information to the Advocate. To protect Confidential Information, Advocates shall not, on his or her own behalf, or on behalf of any other person, partnership, association, corporation or other entity: ● Directly or indirectly disclose any Confidential Information to any third party; ● Directly or indirectly disclose the password or other access code to his or her back office to any third party; ● Use any Confidential Information to compete with Hacked Snacks or to Recruit any Advocate or Customer, or for any other purpose other than to promote his or her Hacked Snacks business; ● Recruit or solicit any Advocate or Customer of Hacked Snacks listed on any report or in the Advocate’s back office, or in any manner attempt to influence or induce any Advocate or Customer of Hacked Snacks to alter their business relationship with Hacked Snacks; or ● Use or disclose to any person, partnership, association, corporation, or other entity any Confidential Information. Each Advocate stipulates that if he or she violates the terms of this confidentiality provision, Hacked Snacks will be irreparably harmed. Advocate therefore stipulates that Hacked Snacks shall be entitled to immediate temporary, preliminary, and permanent injunctive relief to enforce the terms of this provision, prevent the use and/or disclosure of Confidential Information, and otherwise seek relief to protect its Confidential Information. The provisions of this Section 3.10.5 shall survive termination of the Advocate Agreement. 3.11 - Targeting Other Direct Sellers Hacked Snacks does not condone Advocates specifically or consciously targeting the sales force of another direct sales company to sell Hacked Snacks products or to become Advocates for Hacked Snacks, nor does Hacked Snacks condone Advocates’ solicitation or enticement of members of the sales force of another direct sales company to violate the terms of their contract with such other company. Should Advocates engage in such activity, they bear the risk of being sued by the other direct sales company. If any lawsuit, arbitration or mediation is brought against an Advocate alleging that he or she engaged in inappropriate recruiting activity of its sales force or customers, Hacked Snacks will not pay any of Advocate’s defense costs or legal fees, nor will Hacked Snacks indemnify the Advocate for any judgment, award, or settlement. 19 3.12 - Errors or Questions If an Advocate has questions about or believes any errors have been made regarding commissions, bonuses, genealogy lists, or charges, the Advocate must notify Hacked Snacks in writing within 60 days of the date of the purported error or incident in question. Hacked Snacks will not be responsible for any errors, omissions or problems not reported to the Company within 60 days. 3.13 - Governmental Approval or Endorsement Neither federal nor state regulatory agencies or officials approve or endorse any direct selling or network marketing companies or programs. Therefore, Advocates shall not represent or imply that Hacked Snacks or its Compensation Plan have been "approved," "endorsed" or otherwise sanctioned by any government agency. 3.14 - Income Taxes Each Advocate is responsible for paying local, state, and federal taxes on any income generated as an Advocate. If an Advocate’s Hacked Snacks business is tax exempt, the Federal tax identification number must be provided to Hacked Snacks. Every year, Hacked Snacks provides an IRS Form 1099 MISC (Non-employee Compensation) earnings statement to each U.S. resident who: 1) Had earnings of over $600 in the previous calendar year; or 2) Made purchases during the previous calendar year in excess of $5,000. 3.15 - Independent Contractor Status Advocates are independent contractors. The agreement between Hacked Snacks and its Advocates does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the Advocate. An Advocate shall not be treated as an employee for his or her services or for Federal or State tax purposes. All Advocates are responsible for paying local, state, and federal taxes due from all compensation earned as an Advocate of the Company. The Advocate has no authority (expressed or implied) to bind the Company to any obligation. Each Advocate shall establish his or her own goals, hours, and methods of sale, so long as he or she complies with the terms of the Advocate Agreement, this Statement of Policies & Procedures, and applicable laws. 3.16 - International Marketing Advocates are authorized to sell Hacked Snacks products and enroll Customers or Advocates only in the countries in which Hacked Snacks is authorized to conduct business, as set forth in the Resources tab in the back office, as updated from time to time (currently, the United States and Puerto Rico only). Hacked Snacks products or sales aids may not be shipped into or sold in any foreign country that the Company has not announced is officially open for business. Advocates may sell, give, transfer, or distribute Hacked Snacks products or sales aids only in their home country. In addition, no Advocate may, in any unauthorized country: (a) conduct sales, enrollment or training meetings; (b) enroll or attempt to enroll potential customers or Advocates; or (c) conduct any other activity for the purpose of selling Hacked Snacks products, establishing a marketing organization, or promoting the Hacked Snacks opportunity. 20 3.17 - Bonus Buying Bonus buying is not allowed. Bonus buying includes any mechanism or artifice to qualify for rank advancement, incentives, prizes, commissions or bonuses that is not driven by bona fide product purchases by the Advocate. Bonus buying includes, but is not limited to, purchasing products through a straw man or other artifice. Hacked Snacks has the right to audit an Advocate’s order history and/or inventory and request proof of a reasonable amount of their sales are generated from product sales to customers. 3.18 - Adherence to Laws and Ordinances Advocates shall comply with all federal, state, and local laws and regulations in the conduct of their businesses. Many cities and counties have laws regulating certain home-based businesses. In most cases these ordinances are not applicable to Advocates because of the nature of their business. However, Advocates must obey those laws that do apply to them. If a city or county official tells an Advocate that an ordinance applies to him or her, the Advocate shall be polite and cooperative, and immediately send a copy of the ordinance to the Hacked Snacks Compliance Department (compliance@HackedSnacks.com). 3.19 - One Hacked Snacks Business Per Advocate and Per Household An Advocate may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one Hacked Snacks business. No individual may have, operate or receive compensation, directly or indirectly, from more than one Hacked Snacks business. Individuals of the same Household may not enter into or have an interest in more than one Hacked Snacks Business. A “Household” is defined as spouses, and dependent children living at or doing business at the same address. In order to maintain the integrity of the Hacked Snacks Compensation Plan, husbands and wives or common-law couples (collectively “spouses”) who wish to become Hacked Snacks Advocates will constitute one Hacked Snacks business. Each individual or entity in a jointly-held business shall be jointly and severally bound by the terms and obligations of the Agreement. Spouses, regardless of whether one or both are signatories to the Advocate Agreement, may not own or operate any other Hacked Snacks business, either individually or jointly, nor may they participate directly or indirectly (as a shareholder, partner, trustee, trust beneficiary, or have any other legal or equitable ownership) in the ownership or management of another Hacked Snacks business in any form. An exception to the one business per Advocate/household rule will be considered on a case-bycase basis if two Advocates marry or in cases of an Advocate receiving an interest in another business through inheritance. Requests for exceptions to policy must be submitted in writing to the Compliance Department (compliance@HackedSnacks.com). 3.20 - Actions of Household Members or Affiliated Parties If any member of an Advocate’s immediate household engages in any activity which, if performed by the Advocate, would violate any provision of the Agreement, such activity will be deemed a violation by the Advocate and Hacked Snacks may take disciplinary action against the Advocate. Similarly, if any partner, shareholder, member, or other individual with any ownership or management capacity (collectively “Affiliated Individual”) in a corporation, partnership, LLC, trust 21 or other entity (collectively “Business Entity”) violates the Agreement, such action(s) will be deemed a violation by the Business Entity and each Affiliated Individual, and Hacked Snacks may take disciplinary action jointly and severally against the Business Entity and/or each Affiliated Individual. 3.21 - Sale, Transfer or Assignment of Hacked Snacks Business Although a Hacked Snacks business is a privately-owned and independently-operated business, the sale, transfer or assignment of a Hacked Snacks business, and the sale, transfer, or assignment of an interest in a Business Entity that owns or operates a Hacked Snacks business, is subject to certain limitations. If an Advocate wishes to sell his or her Hacked Snacks business (or any of its material assets), or interest in a Business Entity that owns or operates a Hacked Snacks business, the following criteria must be met: ● The selling Advocate must offer Hacked Snacks the right of first refusal to purchase the business on the same terms as agreed upon with a third-party buyer. Hacked Snacks shall have fifteen (15) days from the date of receipt of the written offer from the seller to exercise its right of first refusal. ● The buyer or transferee must become a qualified Hacked Snacks Advocate. If the buyer is an active Hacked Snacks Advocate, he or she must first terminate his or her Hacked Snacks business and wait six calendar months before acquiring any interest in a different Hacked Snacks business. ● Before the sale, transfer or assignment can be finalized and approved by Hacked Snacks, any debt obligations the selling party has with Hacked Snacks must be satisfied. ● The selling party must be in good standing and not in violation of any of the terms of the Agreement in order to be eligible to sell, transfer or assign a Hacked Snacks business. Prior to selling an independent Hacked Snacks business or Business Entity interest, the selling Advocate must notify Hacked Snacks’ Compliance Department in writing and advise of his or her intent to sell his/her Hacked Snacks business or Business Entity interest. The selling Advocate must also receive written approval from the Compliance Department before proceeding with the sale. Hacked Snacks reserves the sole and exclusive right to determine whether a business may be sold and whether the sale to a buyer would be appropriate. No changes in line of the Enrolling Advocate can result from the sale or transfer of a Hacked Snacks business. 3.22 - Separation of a Hacked Snacks Business Hacked Snacks Advocates sometimes operate their Hacked Snacks businesses as husband-wife partnerships, regular partnerships, LLCs, corporations, trusts, or other Business Entities. At such time as a marriage may end in divorce or a corporation, LLC, partnership, trust or other Business Entity may dissolve, arrangements must be made to assure that any separation or division of the business is accomplished so as not to adversely affect the interests and income of other businesses up or down the line of sponsorship. During the divorce or entity dissolution process, the parties must adopt one of the following methods of operation: ● One of the parties may, with consent of the other(s), operate the Hacked Snacks business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, 22 partners or trustees authorize Hacked Snacks to deal directly and solely with the other spouse or non-relinquishing shareholder, partner or trustee. ● The parties may continue to operate the Hacked Snacks business jointly on a “businessas-usual” basis, whereupon all compensation paid by Hacked Snacks will be paid according to the status quo as it existed prior to the divorce filing or dissolution proceedings. This is the default procedure if the parties do not agree on the format set forth above. Under no circumstances will the Team of divorcing spouses or a dissolving business entity be divided. Similarly, under no circumstances will Hacked Snacks split commission and bonus checks between divorcing spouses or members of dissolving entities. Hacked Snacks will recognize only one Team and will issue only one commission check per Hacked Snacks business per commission cycle. Commission checks shall always be issued to the same individual or entity. In the event that parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition of commissions and ownership of the business in a timely fashion as determined by the Company, the Advocate Agreement shall be involuntarily Cancelled. If a former spouse has completely relinquished all rights in the original Hacked Snacks business pursuant to a divorce, he or she is thereafter free to enroll under any Enrolling Advocate of his or her choosing without waiting six calendar months. In the case of business entity dissolutions, the former partner, shareholder, member, or other entity affiliate who retains no interest in the business must wait six calendar months from the date of the final dissolution before re-enrolling as an Advocate. In either case, the former spouse or business affiliate shall have no rights to any Advocates in their former Team or to any former Customer. They must develop the new business in the same manner as would any other new Advocate. 3.23 - Sponsoring Online When sponsoring a new Advocate through the online enrollment process, the Enrolling Advocate may assist the new applicant in filling out the enrollment materials. However, the applicant must personally review and agree to the Advocate Agreement, Hacked Snacks’ Policies and Procedures, and the Hacked Snacks Compensation Plan. The Enrolling Advocate may not fill out the online Advocate AGREEMENT on behalf of the applicant and agree to these materials on behalf of the applicant. THE SUBMISSION OF AN ONLINE APPLICATION, WHETHER BY THE NEW APPLICANT, THE ENROLLING ADVOCATE, OR ANYONE ACTING UNDER THE DIRECTION OF EITHER OF THEM, CONSTITUTES ACCEPTANCE OF AND BINDING AGREEMENT BY THE NEW APPLICANT TO ALL TERMS AND OBLIGATIONS OF THE AGREEMENT. 3.24 - Succession Upon the death or incapacitation of an Advocate, his or her business may be passed to his or her heirs. Appropriate legal documentation must be submitted to the Company to ensure the transfer is proper. Accordingly, an Advocate should consult an attorney to assist him or her in the preparation of a will or other testamentary instrument. Whenever a Hacked Snacks business is transferred by a will or other testamentary process, the beneficiary acquires the right to collect all bonuses and commissions of the deceased Advocate’s marketing organization provided the following qualifications are met. The successor(s) must: 23 ● Execute an Advocate Agreement; ● Comply with terms and provisions of the Agreement; ● Meet all of the qualifications for the deceased or incapacitated Advocate’s status; ● The devisee must provide Hacked Snacks with an “address of record” to which all bonus and commission checks will be sent; ● If the business is bequeathed to joint devisees, they must form a business entity and acquire a Federal Taxpayer Identification Number. Hacked Snacks will issue all bonus and commission checks and one 1099 to the business entity. 3.24.1 - Transfer Upon Death of an Advocate Hacked Snacks will cancel an account for inactivity upon the death of an Advocate unless an executor of the estate requests the transfer of the account to an heir. To transfer a Hacked Snacks business through testamentary process, the executor of the estate must provide the following to Hacked Snacks: (1) an original death certificate; (2) certified letters testamentary or a letter of administration appointing an executor; and (3) written instructions from the authorized executor to Hacked Snacks specifying to whom the business and income should be transferred. 3.24.2 - Transfer Upon Incapacitation of an Advocate To effectuate a transfer of a Hacked Snacks business because of incapacity, the successor must provide the following to Hacked Snacks: (1) a notarized copy of an appointment as trustee; (2) a notarized copy of the trust document or other documentation establishing the trustee’s right to administer the Hacked Snacks business; and (3) a completed Advocate Agreement executed by the trustee. 3.25 - Telemarketing Techniques The Federal Trade Commission and the Federal Communications Commission each have laws that restrict telemarketing practices. Both federal agencies (as well as a number of states) have “do not call” regulations as part of their telemarketing laws. Although Hacked Snacks does not consider Advocates to be “telemarketers” in the traditional sense of the word, these government regulations broadly define the term “telemarketer” and “telemarketing” so that your inadvertent action of calling someone whose telephone number is listed on the federal “do not call” registry could cause you to violate the law. Moreover, these regulations must not be taken lightly, as they carry significant penalties. Therefore, Advocates must not engage in telemarketing in the operation of their Hacked Snacks businesses. The term “telemarketing” means the placing of one or more telephone calls to an individual or entity to induce the purchase of a Hacked Snacks product, or to recruit them for the Hacked Snacks opportunity. “Cold calls" made to prospective customers or Advocates that promote either Hacked Snacks’ products or services or the Hacked Snacks opportunity constitute telemarketing and are prohibited. However, a telephone call(s) placed to a prospective customer or Advocate (a "prospect") is permissible under the following situations: ● If the Advocate has an established business relationship with the prospect. An “established business relationship” is a relationship between an Advocate and a prospect based on the prospect’s purchase, rental, or lease of goods or services from the Advocate, or a financial transaction between the prospect and the Advocate, within the eighteen (18) 24 months immediately preceding the date of a telephone call to induce the prospect's purchase of a product. ● The prospect’s personal inquiry or application regarding a product offered by the Advocate, within the three (3) months immediately preceding the date of such a call. ● If the Advocate receives written and signed permission from the prospect authorizing the Advocate to call. The authorization must specify the telephone number(s) which the Advocate is authorized to call. ● You may call family members, personal friends, and acquaintances. An “acquaintance” is someone with whom you have at least a recent first-hand relationship within the preceding three months. Bear in mind, however, that if you engage in “card collecting” with everyone you meet and subsequently calling them, the FTC may consider this a form of telemarketing that is not subject to this exemption. Thus, if you engage in calling “acquaintances,” you must make such calls on an occasional basis only and not make this a routine practice. ● Advocates shall not use automatic telephone dialing systems or software relative to the operation of their Hacked Snacks businesses. ● Advocates shall not place or initiate any outbound telephone call to any person that delivers any pre-recorded message (a "robocall") regarding or relating to the Hacked Snacks products, services or opportunity. 3.26 - Back office Access Hacked Snacks makes a back office available to each Advocate. Back offices provide Advocates access to confidential and proprietary information that may be used solely and exclusively to promote the development of an Advocate’s Hacked Snacks business and to increase sales of Hacked Snacks products. However, access to a Back office is a privilege, and not a right. Hacked Snacks reserves the right to deny an Advocate access to the Back office at its sole discretion. 3.27 - Change of Address, Telephone and Email Addresses Advocates whose contact information changes must amend their contact information through their Advocate Back office. 3.28 - Continuing Development Obligations Advocates should monitor the Advocates in their Team to guard against improper product or business claims and illegal or inappropriate conduct. As Advocates progress through the various levels of leadership, they will become more versed in sales techniques, product knowledge, and understanding of the Hacked Snacks business. They will be called upon to share this knowledge with less- experienced Advocates within their Team. Regardless of their level of achievement, Advocates have an ongoing obligation to continue to personally promote sales through the generation of new customers and through servicing their existing customers. 3.29 - Negative Comments Hacked Snacks wants to provide its Advocates with the best products, Compensation Plan, and service in the industry. Accordingly, we value your constructive criticisms and comments. All such comments should be submitted in writing to the Compliance Department. Remember, to best serve you, we must hear from you! While Hacked Snacks welcomes constructive input, negative comments and remarks made in the field by Advocates regarding the Company, its products, or 25 Compensation Plan serve no purpose other than to sour the enthusiasm of other Hacked Snacks Advocates and the public. For this reason, and to set the proper example for their Teams, Advocates must not disparage, demean, or make negative remarks, including online berating about Hacked Snacks, other Hacked Snacks Advocates, Hacked Snacks’ products, marketing materials, Compensation Plan, or Hacked Snacks’ directors, officers, or employees. Complaints and concerns about Hacked Snacks and/or its products should be directed to the Compliance Department. Disputes or disagreements between any Advocate and Hacked Snacks shall be resolved through the dispute resolution process set forth in the Agreement, and the Company and Advocates agree specifically not to demean, discredit, disparage, or criticize one another on the internet or any other public forum. This provision shall survive the termination of the Advocate’s Agreement. 3.30 - Providing Documentation to Applicants Advocates must provide the most current version of the Statement of Policies & Procedures and the Compensation Plan to individuals whom they are sponsoring to become Advocates before the applicant signs an Advocate Agreement or ensure that they have online access to these materials. 3.31 - No Territory Restrictions There are no exclusive territories granted to anyone. 3.32 - Sales Receipts All Advocates who sell merchandise from their inventory must provide their Customers with two copies of an official Hacked Snacks sales receipt at the time of the sale. These receipts set forth the customer satisfaction guarantee as well as any consumer protection rights afforded by federal or state law. Advocates must maintain all retail sales receipts for a period of two years and furnish them to Hacked Snacks at the Company’s request. Remember that Customers must receive two copies of the sales receipt. In addition, Advocates must orally inform the buyer of his or her cancellation rights. SECTION 4 - BONUSES AND COMMISSIONS 4.1 - Bonus and Commission Qualifications and Accrual An Advocate must be active and in compliance with the Agreement to qualify for bonuses and commissions. So long as an Advocate complies with the terms of the Agreement, Hacked Snacks shall pay commissions to such Advocate in accordance with the Compensation Plan. The minimum amount for which Hacked Snacks will issue a commission is $10.00. If an Advocate’s bonuses and commissions do not equal or exceed $10.00, the Company will accrue the commissions and bonuses until they total $10.00. Payment will be issued once $10.00 has been accrued. Notwithstanding the foregoing, all commissions owed an Advocate, regardless of the amount accrued, will be paid at the end of each fiscal year or upon the Cancellation of an Advocate’s business. 26 4.2 - Adjustment to Bonuses and Commissions 4.2.1 - Adjustments for Returned Products Advocates receive bonuses and commissions based on the actual sales of products to end consumers. When a product is returned to Hacked Snacks for a refund or is repurchased by the Company, either of the following may occur at the Company’s discretion: (1) the bonuses and commissions attributable to the returned or repurchased product(s) will be deducted, in the month in which the refund is given, and continuing every pay period thereafter until the commission is recovered, from the upline Advocates who received bonuses and commissions on the sales of the refunded products; or (2) the upline Advocates who earned commissions based on the sale of the returned products will have the corresponding points deducted from their Team Volume in the next month and all subsequent months until it is completely recovered. 4.2.2 - Hard Copy Commission Checks The Company pays commissions via direct deposit into Advocates’ bank accounts. Advocates may also request a hard-copy check in lieu of direct deposit, for a $2.00 per check fee. Fee will be deducted from commission paid. 4.3 - Reports All information provided by Hacked Snacks in Team activity reports, including but not limited to Personal Volume and Team Volume (or any part thereof), and Team sponsoring activity is believed to be accurate and reliable. Nevertheless, due to various factors (including, but not limited to, the inherent possibility of human, digital, and mechanical error; the accuracy, completeness, and timeliness of orders; denial of credit card and electronic check payments; returned products; or credit card and electronic check charge-backs), the information is not guaranteed by Hacked Snacks or any persons creating or transmitting the information. ALL PERSONAL AND TEAM VOLUME INFORMATION IS PROVIDED "AS IS" WITHOUT WARRANTIES, EXPRESS OR IMPLIED, OR REPRESENTATIONS OF ANY KIND WHATSOEVER. IN PARTICULAR BUT WITHOUT LIMITATION THERE SHALL BE NO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, OR NON-INFRINGEMENT. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, HACKED SNACKS AND/OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION WILL IN NO EVENT BE LIABLE TO ANY ADVOCATE OR ANYONE ELSE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT ARISE OUT OF THE USE OF OR ACCESS TO PERSONAL AND/OR TEAM SALES VOLUME INFORMATION (INCLUDING BUT NOT LIMITED TO LOST PROFITS, BONUSES, OR COMMISSIONS, LOSS OF OPPORTUNITY, AND DAMAGES THAT MAY RESULT FROM INACCURACY, INCOMPLETENESS, INCONVENIENCE, DELAY, OR LOSS OF THE USE OF THE INFORMATION), EVEN IF HACKED SNACKS OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. TO THE FULLEST EXTENT PERMITTED BY LAW, HACKED SNACKS OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE NO RESPONSIBILITY OR LIABILITY TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY OR OTHER THEORY 27 WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO. Access to and use of Hacked Snacks’ online and telephone reporting services and your reliance upon such information is at your own risk. All such information is provided to you "as is." If you are dissatisfied with the accuracy or quality of the information, your sole and exclusive remedy is to discontinue use of and access to Hacked Snacks’ online and telephone reporting services and your reliance upon the information. SECTION 5 - PRODUCT REFUNDS, RETURNS AND INVENTORY REPURCHASE 5.1 - Refund Policy Hacked Snacks offers a 100% product refund policy to all Customers and Advocates. Merchandise must be returned to Hacked Snacks in undamaged and unused condition, in its original packaging within 30 days from the date on which the product is delivered. Wholesale Direct orders placed by an Advocate that are returned (within the 14 days from the order delivery date), whole or in part, under the terms of this refund policy, will also incur a restocking fee of 15% of the price of the original order, which will be deducted from the refund owed. Shipping charges will not be refunded. If an Advocate returns merchandise totaling $250 PV or more for a refund in any 12 consecutive month period without prior written permission of Hacked Snacks, the request will constitute the Advocate’s voluntary Cancellation of his/her Advocate Agreement, and the refund will be processed as an inventory repurchase pursuant to Section 5.2. Merchandise received by Customers or Advocates in damaged condition will be replaced by Hacked Snacks. Hacked Snacks reserves the rights to replace damaged product immediately or upon return of the damaged product to the Company. In addition to the above refund policy, Advocates must verbally disclose to their Customers that they have three (3) business days (five (5) business days for Alaska residents) following the date of the transaction to cancel the sale, and point out to them the notice of right to cancel terms on their sales receipt or order form. Sundays and legal holidays are not “business days.” 5.2 - Return of Inventory and Sales Aids by Advocates Upon Cancellation Upon cancellation of an Advocate’s Agreement, the Advocate may return Starter Kits, products and sales aids that he or she personally purchased from Hacked Snacks (purchases from other Advocates or third parties are not subject to refund) that are in Resalable (see Definition of “Resalable” below) condition and which have not expired to the following address: Hacked Snacks Returns 6702 W. Buck Ridge Dr. Herriman, UT 84096 Upon receipt of a Resalable Starter Kit and/or Resalable products and sales aids, the Advocate will be reimbursed 90% of the net cost of the original purchase price(s). Neither shipping & handling charges incurred by an Advocate when the Starter Kit, products or sales aids were purchased, nor return shipping fees, will be refunded. If the purchases were made through a credit card, the refund will be credited back to the same account. If an Advocate was paid a commission 28 based on a product(s) that he or she purchased, and such product(s) is subsequently returned for a refund, the commission that was paid based on that product purchase will be deducted from the amount of the refund. Returned product that is not in resalable condition will not be returned to the Advocate. Products and Sales aids shall be deemed "resalable" if each of the following elements is satisfied: 1) they are unopened and unused; 2) packaging and labeling has not been altered or damaged; 3) they are in a condition such that it is a commercially reasonable practice within the trade to sell the merchandise at full price; and 4) it is returned to Hacked Snacks before the product expiration date. Personal Website fees are not refundable except as required by applicable state law. 5.2.1 - Montana Residents A Montana resident may cancel his or her Advocate Agreement within 15 days from the date of enrollment, and may return his or her Starter Kit for a full refund within such time period. 5.3 - Procedures for All Other Returns The following procedures apply to all returns for refund, repurchase, or exchange: ● Unless otherwise directed by the Company, merchandise must be returned to Hacked Snacks by the Advocate or Customer who purchased it directly from Hacked Snacks. The address for returns is set forth on the packing slip. ● The return is accompanied by: ○ The completed Hacked Snacks Return/Exchange Form (available at returns.HackedSnacks.com); ○ The product in its original packaging and in new, sellable condition. ● Proper shipping carton(s) and packing materials are to be used in packaging the product(s) being returned for replacement, and the best and most economical means of shipping is suggested. All returns must be shipped to the return address set forth on the packing slip of the Product. Hacked Snacks does not accept shipping-collect packages. The risk of loss in shipping for returned product shall be on the Advocate. If returned product is not received by the Company’s Returns Department, it is the responsibility of the Advocate to trace the shipment. ● Unless otherwise directed by the Company, if an Advocate is returning merchandise to Hacked Snacks that was returned to him or her by a personal Customer, the product must be received by Hacked Snacks within ten (10) days from the date on which the Customer returned the merchandise to the Advocate, and must be accompanied by the sales receipt the Advocate gave to the Customer at the time of the sale. No refund or replacement of product will be made if the conditions of these procedures are not followed. SECTION 6 - DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS 6.1 - Disciplinary Sanctions Violation of the Agreement, these Policies and Procedures, violation of any common law duty, including but not limited to any applicable duty of loyalty, any illegal, fraudulent, deceptive or unethical business conduct, or any act or omission by an Advocate that may damage its reputation 29 or goodwill (such damaging act or omission need not be related to the Advocate’s Hacked Snacks business), may result, at Hacked Snacks’ discretion, in one or more of the following corrective measures: ● Issuance of a written warning or admonition; ● Requiring the Advocate to take immediate corrective measures, including but not limited to personally refunding customers who may have been harmed by the Advocate’s conduct; ● Imposition of a fine, which may be withheld from bonus and commission checks; ● Loss of rights to one or more bonus and commission checks; ● Hacked Snacks may withhold from an Advocate all or part of the Advocate’s bonuses and commissions during the period that Hacked Snacks is investigating any conduct allegedly in violation of the Agreement. If an Advocate’s business is cancelled for disciplinary reasons, the Advocate will not be entitled to recover any commissions withheld during the investigation period; ● Suspension of the individual’s Advocate Agreement for one or more pay periods; ● Involuntary termination of the offender’s Advocate Agreement; ● Suspension and/or termination of the offending Advocate’s Hacked Snacks website or website access; ● Any other measure expressly allowed within any provision of the Agreement or which Hacked Snacks deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the Advocate’s policy violation or contractual breach; ● In situations deemed appropriate by Hacked Snacks, the Company may institute legal proceedings for monetary and/or equitable relief. In the event of a suspension of an Advocate’s Agreement by the Company, the Advocate shall have no right or claim to any bonus or commission payments withheld by the Company during the period of suspension. The Company shall be entitled to maintain the suspension period for as long as necessary to fully investigate the facts and events relating to the suspension and to consider the Company’s response. In the event that the Company determines after such investigation that, in its sole discretion, the grounds for suspension were wholly without merit and unsupported by any evidence, the Company may choose to pay the Advocate any bonus or commission payments withheld by the Company during the period of suspension. In every other circumstance, including but not limited to cancellation of the Advocate’s Agreement or reinstatement despite a finding that the suspension was warranted or supported by some evidence, the Advocate shall not receive or have any claim to bonus or commission payments withheld by the Company during the period of suspension. 6.2 – Advocate Advisory Committee If the Advocate believes that a decision to terminate, or decision that involves a loss of right, was reasonably believed to be improper, he or she may appeal the decision to an Advocate Advisory Committee (AAC). The AAC shall consist of five people: two higher ranking Advocates, and three corporate employees. All Advocates must agree to serve on the AAC, if selected, as part of the rank advancement responsibilities. 30 To initiate the process, the Advocate must submit a request for appeal in writing within 15 days of the decision in 6.1, above. The AAC will review the appeal request and decide whether to accept or deny the appeal request. If the appeal request is accepted, the advocate is allowed to present his or her case through a telephone conference at a scheduled time. The AAC will only consider evidence and issues that are presented in the appeal request. The AAC decision will be expressed either verbally at the time of the telephone conference or in writing within 15 days of the conference call. 6.3 - Grievances and Complaints When an Advocate has a grievance or complaint with another Advocate regarding any practice or conduct in relationship to their respective Hacked Snacks businesses, the complaining Advocate should first report the problem to his or her Enrolling Advocate who should review the matter and try to resolve it with the other party's Enrolling Advocate. If the matter involves interpretation or violation of Company policy, it must be reported in writing to the Compliance Department at the Company. The Compliance Department will review the facts and resolve it. 6.4 - Arbitration and Other Dispute Resolution Except as otherwise provided in the Agreement, any controversy or claim arising out of or relating to the Agreement, or the breach thereof, including claims at law or equity, contract-based, tortbased, and/or otherwise, shall be settled through confidential arbitration. The Parties waive rights to trial by jury or to any court except as expressly provided herein. The arbitration shall be filed with, and administered by, the American Arbitration Association in accordance with the AAA’s Commercial Arbitration Rules and Mediation Procedures, which are available on the AAA’s website at www.adr.org. Copies of the AAA’s Commercial Arbitration Rules and Mediation Procedures will also be emailed to Advocates upon request to Hacked Snacks’ Customer Service Department. Notwithstanding the rules of the AAA, unless otherwise stipulated by the Parties, the following shall apply to all Arbitration actions: ● The Federal Rules of Evidence and Federal Rules of Civil Procedure shall apply in all cases; ● The arbitration hearing shall commence no later than 365 days from the date on which the arbitrator is appointed, and shall last no more than five (5) business days; ● The Parties shall be allotted equal time to present their respective cases; ● The arbitration shall be brought on an individual basis by each Advocate and not as part of a class or consolidated action. If the Company initiates arbitration, it may join multiple Advocates or other parties in such proceeding. All arbitration proceedings shall be held solely and exclusively in Salt Lake City, Utah. There shall be one arbitrator selected from the panel that the AAA provides. If the Parties cannot agree on a mutually agreeable arbitrator within ten (10) business days of the date the panel list is provided to them, the Parties shall rank the panel arbitrators, beginning with 1 for most preferable, within five (5) business days thereafter and exchange rankings with the other Party. The arbitrator receiving the lowest collective rank shall be appointed as the arbitrator. In the event of a tie, the tying arbitrator selected by the Company shall be appointed. 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 31 court having jurisdiction to enter such judgment. This agreement to arbitrate shall survive the cancellation or termination of the Agreement. Unless otherwise stipulated by all parties thereto, the Parties and the arbitrator shall maintain the confidentiality of the arbitration proceedings and shall not disclose to third parties: ● The substance of, or basis for, the controversy, dispute, or claim; ● The substance or content of any settlement offer or settlement discussions or offers associated with the dispute; ● The pleadings, or the content of any pleadings, or exhibits thereto, filed in any arbitration proceeding; ● The content of any testimony or other evidence presented at an arbitration hearing or obtained through discovery in arbitration; ● The terms or amount of any arbitration award; ● The rulings of the arbitrator on the procedural and/or substantive issues involved in the case. Notwithstanding the foregoing, nothing in the Agreement shall prevent the Company from applying to and obtaining from any court having jurisdiction a writ of attachment, temporary restraining order, preliminary or permanent injunction, or other equitable relief available to safeguard and protect the Company’s interests and rights prior to, during, or following the filing of any arbitration proceeding. This arbitration provision and all obligations set forth herein shall not apply to claims asserted by the Company against any individual or entity, including Advocates, for violation of Section 3.10 (Conflicts of Interest), including but not limited to Sections 3.10.1 (Nonsolicitation) and 3.10.5 (Confidential Information). All such claims shall be brought and adjudicated in the federal or state courts residing in Salt Lake County, State of Utah, U.S.A., to the exclusion of all other venues and fora. The Parties consent to mandatory and exclusive jurisdiction and venue before such courts for all non-arbitrable claims between them. This Section 6.3 and the following Section 6.4 shall inure to the benefit of the Company and all of its parents, subsidiaries, affiliates, officers, directors, members, managers, agents, employees, attorneys, successors, and assigns, any of whom shall be entitled to invoke or seek enforcement of those Sections, and shall cover all claims asserted against any of them that arise out of or relate to the Agreement. 6.5 - Governing Law, Jurisdiction and Venue Mandatory and exclusive jurisdiction and venue of any claim, dispute, matter, controversy, or action involving the Company and Advocate that is not subject to arbitration shall be in the federal and state courts residing in Salt Lake County, State of Utah, U.S.A., to the exclusion of all other venues and fora. Advocates hereby waive any objection in such actions based on venue or forum non conveniens. The Federal Arbitration Act shall govern all matters relating to arbitration. The law of the State of Utah shall govern all other matters relating to or arising from the Agreement or the breach thereof, including claims at law or equity, contract-based, tort-based, and/or otherwise, 32 and including substantive claims or defenses asserted within any arbitration proceeding, without regard to principles of conflicts of laws. 6.5.1 - Louisiana Residents Notwithstanding the foregoing and the arbitration provision in Section 6.3, residents of the State of Louisiana shall be entitled to bring an action against Hacked Snacks in their home forum and pursuant to Louisiana law. SECTION 7 - PAYMENT, SALES TAXES, SHIPMENT AND RISK OF LOSS 7.1 - Restrictions on Third Party Use of Credit Cards and Checking Account Access Advocates shall not permit other Advocates or Customers to use his or her credit card, or permit debits to their checking accounts, to enroll or to make purchases from the Company. 7.2 - Sales Taxes Hacked Snacks charges sales tax on all purchases made by Advocates and Customers, and remits the taxes charged to the respective states. Accordingly, Hacked Snacks will collect and remit sales taxes on behalf of Advocates, based on the suggested retail price of the products, according to applicable tax rates in the jurisdiction into which the shipment is destined. 7.3 – Shipment, Title and Risk of Loss All shipments of Products shall be made by the carrier selected by Hacked Snacks. Title and risk of loss or damage to the Products shall pass to the Advocate or Customer, as applicable, upon delivery of the Products for shipment to the carrier at Hacked Snacks’ fulfillment facility, and any claim of loss or damage shall be made by the Advocate or Customer, as applicable, against such carrier. SECTION 8 - INACTIVITY AND CANCELLATION 8.1 - Effect of Cancellation So long as an Advocate remains active and complies with the terms of the Advocate Agreement and the Policies & Procedures, Hacked Snacks shall pay commissions to such Advocate in accordance with the Compensation Plan. An Advocate’s bonuses and commissions constitute the entire consideration for the Advocate's efforts in generating sales and all activities related to generating sales (including building a Team). Following an Advocate’s non-renewal of his or her Advocate Agreement, Cancellation for inactivity, or voluntary or involuntary Cancellation of his or her Advocate Agreement (all of these methods are collectively referred to as “Cancellation”), the former Advocate shall have no right, title, claim or interest to the marketing organization which he or she operated, or any commission, bonus or product credits from the sales generated by the Team. An Advocate whose business is cancelled will lose all rights as an Advocate. This includes the right to sell Hacked Snacks products and the right to receive future commissions, bonuses, or other income resulting from the sales and other activities of the Advocate’s former Team. In the event of cancellation, Advocates agree to waive all rights they may have, including but not limited to property rights, to their former Team and to any product credit, bonuses, commissions or other remuneration derived from the sales and other activities of his or her former Team. 33 Following an Advocate’s Cancellation of his or her Advocate Agreement, the former Advocate shall not represent himself or herself as a Hacked Snacks Advocate and shall not have the right to sell Hacked Snacks products or services. An Advocate whose business is cancelled shall receive commissions and bonuses only for the last full pay period he or she was active prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation). When an Advocate Agreement is Cancelled, unless pursuant to Section 8.2 below, the Advocate’s downline organization is immediately and permanently moved to the Advocate’s current Enrolling Advocate. 8.2 - Failure to Meet Personal Volume (PV) Quota An Advocate must personally generate at least $100 Personal Volume (PV) plus $100 Customer Sale Volume (CSV) per pay period to be eligible for override commissions. In order for an Advocate to maintain his or her Team, the Advocate must generate at least $200 PV in each 6-month rolling period (the “Rolling PV Requirement”). For examples of the application of the Rolling PV Requirement, please see the document titled “Personal Volume Requirements” in the Back office. If an Advocate fails to meet the Rolling PV Requirement in any 6-month rolling period, such Advocate’s downline organization will permanently roll-up to such Advocate’s Enrolling Advocate. 8.3 - Involuntary Cancellation An Advocate’s violation of any of the terms of the Agreement, including any amendments that may be made by Hacked Snacks in its sole discretion, may result in any of the sanctions listed in Section 6.1, including the involuntary Cancellation of his or her Advocate Agreement. Cancellation shall be effective on the date on which written notice is mailed, emailed, faxed, or delivered to an express courier, to the Advocate’s last known address, email address, or fax number, or to his/her attorney, or when the Advocate receives actual notice of Cancellation, whichever occurs first. Hacked Snacks reserves the right to terminate all Advocate Agreements upon thirty (30) days written notice in the event that it elects to: (1) cease business operations; (2) dissolve as a corporate entity; or (3) terminate distribution of its products via direct selling. If an Advocate Agreement is involuntarily Cancelled pursuant to this Section, the Advocate position will remain in its current position in the Company organizational network, and its downline organization will remain intact until the Company has recouped all costs and losses, including attorneys fees, associated with the Advocate Agreement Cancellation and the events that are connected with or led to the cancellation. This provision includes all costs, fees, and expenses associated with litigation that may result from or be connected with such Cancellation. Once the Company determines, in its sole discretion, that is has recouped all such costs and losses, the cancelled Advocate position shall be terminated from the Company’s organizational network, and the downline organization shall roll-up to the immediately upline Advocate. 34 8.4 - Voluntary Cancellation A participant in this direct selling plan has a right to Cancel at any time, regardless of reason. Cancellation must be either: ● submitted in writing to the Company at its principal business address, which writing must contain the Advocate’s signature, printed name, address, and Advocate ID Number; or ● submitted by email to compliance@HackedSnacks.com, which email must (a) be sent from the Advocate’s email address that is on file with Hacked Snacks and (b) contain the Advocate’s name, address and Advocate ID Number. In addition to written Cancellation, Advocates who have consented to Electronic Contracting will Cancel their Advocate Agreement should they withdraw their consent to contract electronically. 8.5 - Non-renewal An Advocate may also voluntarily Cancel his or her Advocate Agreement by failing to meet the Personal Volume requirements for renewal, as specifically provided in Section 8.2 of these Policies and Procedures. The Company may also elect not to renew an Advocate's Agreement upon its anniversary date. 8.6 - Return of All Confidential Information Upon the Cancellation of an Advocate Agreement, whether voluntary, involuntary, or otherwise, the Advocate must immediately return to the Company all Confidential Information in the possession, custody, or control of the Advocate, regardless of the form thereof, whether in paper, electronic records, email, phone, or physical address books, or any other storage media, and must certify to the Company in writing that this obligation has been fully and completely discharged. Failure to satisfy this obligation constitutes a violation of Section 3.10.4 of these Policies and Procedures. This section shall survive termination of the Agreement. SECTION 9 - DEFINITIONS Enrolling Advocate – With respect to any Advocate, the person or entity who is directly above (i.e., immediately upline to) such Advocate in the applicable Team. Affiliated Party – A shareholder, member, partner, manager, trustee, or other parties with any ownership interest in, or management responsibilities for, a Business Entity. Agreement – The contract between the Company and each Advocate that includes the Advocate Agreement, the Hacked Snacks Policies and Procedures, the Hacked Snacks Compensation Plan, and the Hacked Snacks Personal Website and back office Terms of Use, all in their current form and as amended by Hacked Snacks in its sole discretion. These documents are collectively referred to as the “Agreement.” Back office – The Hacked Snacks-sponsored website that Advocates use to manage their Hacked Snacks business activities. Cancel or Cancellation – The termination of an Advocate’s business. Cancellation may be voluntary, involuntary, through non-renewal or inactivity, or as otherwise provided herein. 35 Customer – An individual or entity who purchases Hacked Snacks products or services from an Advocate or Hacked Snacks, but who is not an Advocate. Customer Sales – Sales to a Customer. External Website – An online property personally owned or controlled by an Advocate other than the Advocate’s Personal Website which has been disclosed to Hacked Snacks in writing, including but not limited to, a company/personal website, blog, Facebook Fan Page, flickr page, application for mobile phones and similar devices, YouTube account page or any social networking site. Fan Page – Dedicated pages of Social Media websites designed for organizations and businesses, to broadcast information in an official, public manner to people who choose to connect with them. Similar to profiles (timelines), Fan Pages can be enhanced with applications that help the entity communicate and engage with their audiences, and capture new audiences virally through friend recommendations, News Feed stories, etc. Household – Spouses and dependent children living at or doing business at the same address. Level – The layers of downline Customers and Advocates in a particular Advocate’s Team. This term refers to the relationship of an Advocate relative to a particular upline Advocate, determined by the number of Advocates between them who are related by sponsorship. For example, if A sponsors B, who sponsors C, who sponsors D, who sponsors E, then E is on A’s fourth level. Official Hacked Snacks Material – Literature, audio, video, websites, and other materials developed, printed, published and/or distributed by Hacked Snacks to Advocates. Personal Email Address – A personal email address other than the email address provided by Hacked Snacks. Personal Volume – See the definition set forth in the Compensation Plan. Personal Website – A Hacked Snacks-sponsored website that Advocates use to sell and market Hacked Snacks products to Customers. Rank – The “title” that an Advocate holds pursuant to the Hacked Snacks Compensation Plan. Recruit – For purposes of Hacked Snacks’ Conflict of Interest Policy (Section 3.10), the term “Recruit” means the actual or attempted sponsorship, solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly (including but not limited to use of a website), or through a third party, another Hacked Snacks Advocate or Customer to enroll or participate in a Network Marketing Activity. This conduct constitutes recruiting even if the Advocate’s actions are in response to an inquiry or contact made by another Advocate or Customer. 36 Resalable – Products and Sales aids shall be deemed "resalable" if each of the following elements is satisfied: 1) they are unopened and unused; 2) packaging and labeling has not been altered or damaged; 3) they are in a condition such that it is a commercially reasonable practice within the trade to sell the merchandise at full price; 4) they are returned to Hacked Snacks before the product expiration date. Any merchandise that is identified at the time of sale as non-returnable shall not be deemed resalable. Social Media – Any type of online media that invites, expedites or permits conversation, comment, rating, and/or user generated content, as opposed to traditional media, which delivers content but does not allow readers/viewers/listeners to participate in the creation or development of content, or the comment or response to content. Examples of Social Media include, but are not limited to, blogs, Snapchat, Pinterest, Periscope, Facebook, Instagram, MySpace, Flickr, Tumblr, Twitter, LinkedIn, Del.icio.us, and YouTube. Subscription Fee - The fee paid by an Advocate to receive access to Online Business Tools. Team – A Team is an organization of Advocates that shares a common Enrolling Advocate, directly or indirectly. Team Volume – See the definition set forth in the Compensation Plan.