POLICIES AND PROCEDURES

1.0 INTRODUCTION

1.1 Mutual Commitment Statement

BubbleBird, Inc. (hereinafter referred to as either “BubbleBird” or simply the “Company”) is a values-based company that prides itself on the quality and character of its independent business owners (known as “Consultants”). The following guidelines help ensure a uniform standard of excellence throughout the BubbleBird sales organization, and ensures that every Consultant knows and understands the kind of ethical behavior expected of them when conducting business, accruing retail customers (“Customers”), and building a downline of Consultants through the sale of BubbleBird products.

A. In the spirit of mutual respect and understanding, BubbleBird is committed to the following:

I. Providing prompt, professional and courteous service and communications to all of its Customers and Consultants;

II. Providing the utmost and high-level quality products, at fair and reasonable prices;

III. Exchanging or refunding the purchase price of any product(s) or service(s) as provided herein:

IV. Timely delivering orders in an accurate fashion;

V. Paying the correct commissions in a prompt fashion;

VI. Expediting orders or checks if an error or unreasonable delay occurs;

VII. Rolling out new products and programs with Consultant input and planning;

VIII. Implementing changes in the Compensation Plan or Policies and Procedures with Consultant input;

IX. Supporting, protecting and defending the integrity of the BubbleBird sales opportunity; and

X. Offering Consultants an opportunity to grow with and alongside the Company.

B. In return, the Company expects its Consultants to commit to:

I. Conducting themselves in a professional, honest, and considerate manner;
II. Presenting BubbleBird Corporate and product information in an accurate and professional manner;

III. Presenting the Compensation Plan and return policy in a complete and accurate manner;

IV. Refraining from the use or utterance(s) of any exaggerated income claims (as further defined herein);

V. Making reasonable effort(s) to support Customers and train downline Consultants;

VI. Refraining from crossline recruiting, unhealthy competition or unethical business practices;

VII. Providing positive assistance to Customers and guidance/training to downline Consultants – all while exercising caution to avoid interference with another Consultant downline. As such, a Consultant should not provide crossline support to another Customer or training to another Consultant in a different organization without first obtaining consent of the Customer’s/Consultant’s upline leader. No cross line recruiting is permitted.

VIII. Supporting, protecting and defending the integrity of the BubbleBird sales
opportunity; and

IX. Accurately completing and submitting the Consultant Application & Agreement, along with any requested supporting documentation, in a timely manner.

1.2 BubbleBird Policies and Compensation Plan Incorporated into the
Consultant Agreement

Throughout these Policies, when the term “Agreement” is used, it collectively refers to the BubbleBird Consultant Application & Agreement, these Policies and Procedures, and the BubbleBird Compensation Plan. It is the responsibility of the Sponsoring Consultant to provide the most current version of these Policies and Procedures (available on the BubbleBird website at bubblebird.com) and the BubbleBird Compensation Plan to each applicant prior to his, her and/or its execution of the Consultant Agreement.

1.3 Purpose of Policies

A. BubbleBird is a direct sales company that markets bath and body products through a network of business owners. To clearly define the relationship that exists between you and the Company, as well as to explicitly set a standard for acceptable business conduct, BubbleBird sets forth these Policies and Procedures.
B. BubbleBird Consultants are required to comply with all of the following: (i) all of the Terms and Conditions set forth in the Consultant Application & Agreement, which the Company may amend from time to time in its sole discretion; (ii) all federal, state, and/or local laws governing his, her and/or its BubbleBird business; and (iii) these Policies and Procedures.

C. BubbleBird Consultants must review the information in these Policies and Procedures carefully. Should you have any questions regarding a policy or rule, you should first seek an answer from your upline Sponsor. If further clarification is needed, contact the Company Customer Service Department ([email protected]) for assistance.

1.4 Changes, Amendments, and Modifications

A. Because federal, state and local laws, as well as the business environment, periodically change, BubbleBird reserves the right to amend the Agreement and the prices in the Company Product Price List in its sole and absolute discretion. Notification of amendments shall appear in Official Company Materials. This provision does NOT apply to the arbitration clause found in Section 12, which can only be modified via mutual consent.

B. Any such amendment, change, or modification shall be effective immediately upon notice by any one of the following methods:

I. Posting on the official Corporate website (bubblebird.com);

II. Electronic mail (e-mail); or

III. In writing through Company newsletters or any other Corporate communication channels.

1.5 Delays

BubbleBird shall not be responsible for delays or failures in performance of its obligations when such failure is due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, transportation difficulties, riot, war, fire, and/or weather, curtailment of a source of supply, or government decrees or orders.

1.6 Effective Date

These Policies and Procedures shall become effective as of March 27, 2020 (“Effective Date”) and, at such time, shall automatically supersede any prior Policies and Procedures. On the Effective Date, the old Policies and Procedures cease to have any force or effect.

2.0 BASIC PRINCIPLES

2.1 Becoming a BubbleBird Consultant

A. To become a Consultant, you must comply with the following requirements:

I. Be of the age of majority (not a minor) in your state of residence;

II. Reside or have a valid address in the United States, or U.S. territory;

III. Have a valid taxpayer identification number (i.e. Social Security Number, Federal Tax ID Number, ITIN, etc.);

IV. Submit a properly completed and signed Consultant Application & Agreement to the Company;

V. Not be a BubbleBird employee, the spouse of a BubbleBird employee or related to an employee of BubbleBird and living in the same household as such employee; and

VI. Pay the enrollment fee and purchase a starter kit.

2.2 New Consultant Registration

A. A prospective Consultant may self-enroll on his, her or its (an entity) Sponsor’s website. In such event, instead of a physically signed Consultant Agreement, BubbleBird will accept the web-enrollment of said prospect by way of his, her or its (an entity) “electronic signature.” An electronic signature signifies that the new Consultant has accepted the Terms and Conditions of the Consultant Application & Agreement. Please note that such electronic signature constitutes a legally binding agreement between you and the Company.

B. BubbleBird reserves the right to require signed paperwork for any account, regardless of origin.

C. If requested by the Company, you must submit an executed hard copy of the Consultant Application & Agreement within five (5) business days of enrollment.

D. Signed documents, including, but not limited to, Consultant personal agreements, are legally binding contracts which must not be altered, tampered with or changed in any manner after they have been signed. False or misleading information, forged signatures or alterations to any document, including business registration forms, made after a document has been signed may lead to sanctions, up to and including involuntary termination of the Consultant’s position and business.

2.3 Rights Granted

A. BubbleBird hereby grants to you as a Consultant a non-exclusive right, based upon the Terms and Conditions contained in the Consultant Agreement and these Policies and Procedures, to:

I. Purchase, promote and sell Company products and services; and

II. Sponsor and sell to other Customers and Consultants in the United States and in countries where BubbleBird may become established after the Effective Date of these Policies and Procedures.

2.4 Identification Numbers

Each Consultant is required to provide his or her Social Security Number, or Federal Tax Identification Number to BubbleBird on the Consultant Application & Agreement. The Company reserves the right to withhold commission payments from any Consultant who fails to provide such information or who provides false information. Upon enrollment, the Company will provide a BubbleBird Identification Number to you. This number will be used to place orders, structure organizations, and track commissions and bonuses.

2.5 Renewal, Involuntary Cancellation, and/or Expiration of the Consultant Agreement

A. If you allow your Consultant Agreement to expire due to non-payment of the annual renewal fee ($50), you will lose any and all rights to your downline organization unless re-activation occurs within thirty (30) days following the expiration of the Agreement.

B. If the inactive Consultant re-activates within the thirty-day time limit, he, she or it (an entity) will resume the rank and position held immediately prior to the expiration of the Agreement. However, the Consultant’s paid as level will not be restored unless he, she and/or it (an entity) qualifies at that payout level in the new month. The Consultant is not eligible to receive commissions for the time period during which his, her or its business was expired.

C. Any Consultant who was terminated or whose Agreement has expired and lapsed the thirty-day grace period is not eligible to re-apply for a BubbleBird business for six (6) months following the expiration of the Consultant Agreement. The Company reserves the right to decline any Consultants who request re-activation.

D. The downline of the expired Consultant will roll up to the immediate, active upline Sponsor.

2.6 Business Entities

A. A corporation, partnership, LLC, or trust (collectively referred to as a “Business Entity”) may apply to be a BubbleBird Consultant. This Consultant business and position will remain temporary until the proper documents are submitted. The Business Entity must submit one of the following documents: Certificate of Incorporation, Articles of Organization, Partnership Agreement or appropriate Trust documents. BubbleBird must receive these documents within five (5) business days from the date of the Consultant Agreement’s execution.

A. A BubbleBird Consultant may change their status under the same Sponsor from an individual to a partnership, LLC, corporation, trust or from one type of business entity to another.

2.7 Independent Business Relationship; Indemnification for Actions

A. A BubbleBird Consultant is an independent contractor, and not a purchaser of a franchise or business opportunity. Therefore, each Consultant’s success depends on his or her independent efforts.

B. The Agreement between BubbleBird and a Consultant does not create an employer/employee relationship, agency, partnership, or joint venture between you and the Company.

C. A Consultant shall not be treated as an employee of BubbleBird for any purposes, including, without limitation, for federal or state tax purposes. All Consultants are responsible for paying local, state and federal taxes due from all compensation earned as a Consultant of BubbleBird. Any other compensation received by Consultants from BubbleBird will be governed by applicable U.S. tax laws (or the tax laws of any other applicable jurisdiction). The Consultant has no express or implied authority to bind the Company to any obligation or to make any commitments by or on behalf of BubbleBird. Each Consultant, whether acting as management of a Business Entity or represented as an individual, shall establish his or her own goals, hours, and methods of operation and sale, so long as he, she or it complies with the Terms of the Consultant Agreement, these Policies and Procedures and applicable state and federal laws.

D. A Consultant is fully responsible for all of his, her or its verbal and written communications made regarding BubbleBird products, services, and the Compensation Plan that are not expressly contained within official Company materials. Consultants shall indemnify and hold harmless the Company, its directors, officers, employees, product suppliers and agents from any and against all liability including judgments, civil penalties, refunds, attorney fees and court costs incurred by the Company as a result of the Consultant’s unauthorized representations or actions. This provision shall survive the termination of the BubbleBird Consultant Agreement.

2.8 Errors or Questions

If a Consultant has questions about, or believes any errors have been made regarding commissions, bonuses, business reports, orders, or charges, the Consultant must notify the Company in writing within thirty (30) days of the date of the error or incident in question. Any such errors, omissions or problems not reported within 30 days shall be deemed expressly waived.

3.0 RESPONSIBILITIES OF A BUBBLEBIRD CONSULTANT

3.1 Correct Addresses

A. It is the responsibility of a Consultant/Customer to make sure BubbleBird has the correct shipping address before any orders are shipped.

B. A Consultant/Customer will need to allow up to thirty (30) days for processing after the notice of address change has been received by the Company.

C. A Consultant/Customer may be assessed a $20 fee for returned shipments due to an incorrect shipping address.

3.2 Training and Leadership

A. Any Consultant who Sponsors another Consultant into BubbleBird must perform an authentic assistance and training function to ensure those in their downline are properly operating their BubbleBird business. Sponsoring Consultants should have ongoing contact and communication with the Consultants in their downline organizations. Examples of communication may include, but are not limited to, newsletters, written correspondence, telephone, contact, team calls, voicemail, e-mail, personal meetings, accompaniment of downline Consultants to Company meetings, training sessions and any other related functions.

B. A Sponsoring Consultant should monitor the Consultants in their downline organizations to ensure that downline Consultants do not make improper product or business claims, or engage in any illegal or inappropriate conduct.

C. Upline Consultants are encouraged to motivate and train new Consultants about Company’s products and services, effective sales techniques, the Company Compensation Plan, and compliance with these Policies and Procedures.

D. Promoting product is a required activity in BubbleBird and must be emphasized in all recruiting presentations. In fact, the Company emphasizes that all Consultants sell BubbleBird’s products and services to Customers through their replicated website in order to receive a commission payment.

E. Use of Sales Aids. To promote both the products and the opportunity BubbleBird offers, Consultants must use the sales aids and support materials produced by the Company. If Consultants develop their own sales aids and promotional materials, which include Internet advertising, notwithstanding any good intentions, they may unintentionally violate any number of statutes or regulations affecting the BubbleBird business. These violations, although they may be relatively few in numbers, could jeopardize the BubbleBird sales opportunity for all Consultants. Accordingly, Consultants must submit all written sales aids, promotional materials, advertisements, websites and other literature to the Company for Company’s approval prior to use within five business days or more. Unless the Consultant receives specific written approval to use the material, the request shall be deemed denied. All Consultants shall safeguard and promote the good reputation of BubbleBird and its products. The marketing and promotion of the Company, the Company’s sales opportunity, the Compensation Plan, and BubbleBird products and services shall be consistent with the public interest, and must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices.

3.3 Constructive Criticism; Ethics

A. BubbleBird desires to provide its independent Consultants with the best products and Compensation Plan in the industry. Accordingly, the Company values constructive criticism and encourages the submission of written comments addressed to [email protected]

B. A Consultant’s negative or disparaging comments about BubbleBird, its products or Compensation Plan, and made to BubbleBird, other Consultants in the field or at Company meetings or events, serve no purpose other than to dampen the enthusiasm of other BubbleBird Consultants. Consultants must not belittle BubbleBird, other Consultants, Company products or services, the Compensation Plan, or Corporate directors, officers, or employees, product suppliers or agents. Such conduct represents a material breach of these Policies and Procedures and may be subject to sanctions as deemed appropriate by the Company.

C. BubbleBird is committed to providing Consultants with an environment free from harassment, intimidation, and abuse from other Consultants, employees, vendors, and any other individual. At BubbleBird, harassment of any kind will not be tolerated and is strictly prohibited, such as: derogatory or threatening comments, inappropriate sexual behavior including but not limited to unwelcome sexual advances or requests for sexual favors, displaying visual images of a sexual nature, physical or verbal harassment, or violent behavior. Consultants are encouraged to report any type of harassment incidents immediately. BubbleBird will not tolerate acts or threats of violence and will investigate all reports. You have a responsibility to act when you are aware of a threat or risk to any of our Consultants, employees, vendors, and any other individuals.

D. BubbleBird endorses the following code of ethics:

I. A BubbleBird Consultant must show fairness, tolerance, and respect to all people associated with BubbleBird, regardless of race, gender, social class or religion, thereby fostering a “positive atmosphere” of teamwork, good morale and community spirit.

II. A Consultant shall strive to resolve business issues, including situations with upline and downline Consultants, by emphasizing tact, sensitivity, good will and taking care not to create additional problems.

III. BubbleBird Consultants must be honest, responsible, professional, and conduct themselves with integrity.

IV. BubbleBird Consultants shall not make disparaging statements about the Company, other Consultants, Company employees, product suppliers or agents, products, services, sales and marketing campaigns, or the Compensation Plan, or make statements that unreasonably offend, mislead, or coerce others.

E. BubbleBird may take appropriate action against a Consultant if it determines, in its sole discretion, that a Consultant’s conduct is detrimental, disruptive, or injurious to the Company or to other BubbleBird Consultants.

3.4 Reporting Policy Violation

A. A Consultant who observes a policy violation by another Consultant should submit an email from the email address we have on file. The letter shall set forth the details of the incident as follows:

I. The nature of the violation;

II. Specific facts to support the allegations;

III. Dates;

IV. Number of occurrences;

V. Persons involved; and

VI. Supporting documentation

B. Once the matter has been presented to BubbleBird, it will be researched thoroughly by the Compliance Department and appropriate action will be taken if required.

C. This section refers to the general reporting of policy violations as observed by other Consultants for the mutual effort to support, protect, and defend the integrity of the BubbleBird business and sales opportunity. If a Consultant has a grievance or complaint against another Consultant which directly relates to his or her BubbleBird business, the procedures set forth in these Policies must be followed.

3.5 Sponsorship

A. The Sponsor is the person who introduces a Customer or Consultant to BubbleBird, helps them complete their enrollment, and supports (and in the case of a downline Consultant trains) them.

B. BubbleBird recognizes the Sponsor as the name(s) shown on the first:

I. Physically signed BubbleBird Consultant Agreement on file; or

II. Electronically signed Consultant Agreement from a website or a BubbleBird Consultant’s website.

C. A Consultant Agreement that contains notations such as “by phone” or the signatures of other individuals (i.e. Sponsors, spouses, relatives, or friends) is not valid and will not be accepted by BubbleBird.

D. The Company recognizes that each new prospect has the right to ultimately choose his, her or its own Sponsor, but BubbleBird will not allow Consultants to engage in unethical sponsoring activities.

E. All active Consultants in good standing have the right to Sponsor and enroll others into BubbleBird. While engaged in sponsoring activities, it is not uncommon to encounter situations when more than one Consultant will approach the same prospect. It is the accepted courtesy that the new prospect will be sponsored by the first Consultant who presented a comprehensive introduction to BubbleBird products or the BubbleBird sales opportunity.

F. Consultants cannot sponsor more than one person within the same household. Address and email must be unique to each Consultant.

G. A Protected Prospect is a guest of any BubbleBird Customer or Consultant who attended a BubbleBird event or conference call. For sixty (60) days following the event, a Protected Prospect cannot be solicited or sponsored by any other BubbleBird Consultant who attended the same event. A Company event can be defined as the following:

I. Any BubbleBird training session;

II. Conference call;

III. Fly-in meeting; or
IV. Presentation, including but not limited to a BubbleBird at home presentation, whether sponsored by the Company, a Consultant, a Customer, or an agent or agency designated by the Company.

3.6 Cross Sponsoring Prohibition

A. “Cross sponsoring” is defined as the enrollment into a different line of sponsorship of an individual, or Business Entity, that already has a signed Consultant Agreement. Actual or attempted cross sponsoring is not allowed. If cross sponsoring is verified by BubbleBird, sanctions up to and including termination of a Consultant’s business may be imposed.

B. The use of a Spouse’s or relative’s name, trade names, assumed names, DBA names, corporation, partnership, trust, Federal ID numbers, or fictitious ID numbers to evade or circumvent this Policy is not permitted.

C. This policy does not prohibit the transfer of a BubbleBird business in accordance with BubbleBird Sale or Transfer Policy set forth in these Policies.

3.7 Adherence to the BubbleBird Compensation Plan, Laws and Ordinances

A. A Consultant must adhere to the Terms of the BubbleBird Compensation Plan as set forth in these Policies and Procedures as well as in official Company literature. Deviation from the Compensation Plan is prohibited.

B. A Consultant shall not offer the BubbleBird sales opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically set forth in official Company literature.

C. A Consultant shall not require or encourage a current or prospective Customer or Consultant to participate in BubbleBird in any manner that varies from the Compensation Plan as set forth in official Company literature.

D. A Consultant shall not require or encourage a current or prospective Customer or Consultant to make a purchase from or payment to any individual or other entity as a condition to participating in the BubbleBird Compensation Plan, other than such purchases or payments required to naturally build their business.

E. Many cities and counties have laws regulating certain home-based businesses. In most cases, these ordinances do not apply to Consultants because of the nature of the business. However, Consultants must check their local laws and obey the laws that do apply to them.

F. A BubbleBird Consultant shall comply with all federal, state and local laws and regulations in their conduct of his, her or its BubbleBird business.

3.8 Compliance with Applicable Income Tax Laws

A. BubbleBird will automatically provide a complete 1099 Miscellaneous Income Tax form (nonemployee compensation) to each US Consultant whose earnings for the year is at least $600 or who received trips, prizes or awards valued at $600 or more. If earnings and purchases are less than stated above, IRS forms will be sent only at the request of the Consultant, and a minimum charge of $20 may be assessed by the Company.

B. A Consultant accepts sole responsibility for and agrees to pay all federal, state and local taxes on any income generated as a Consultant, and further agrees to indemnify BubbleBird from any failure to pay such tax amounts when due.

C. If a Consultant’s business is tax exempt, the Federal Tax Identification number must be provided to the Company in writing.

D. BubbleBird encourages all Consultants to consult with a tax advisor for additional information for their business.

3.9 One BubbleBird Business Per Consultant

A Consultant may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one (1) BubbleBird business. No individual may have, operate or receive compensation from more than one BubbleBird business. Individuals of the same family may each enter into or have an interest in their own separate BubbleBird businesses, only if each subsequent family position is placed frontline to the first family member enrolled and does not have the same address or email as the first family member enrolled.

3.10 Actions of Household Members or Affiliated Parties

If any member of a Consultant’s immediate household engages in any activity which, if performed by the Consultant, would violate any provision of the Agreement, such activity will be deemed a violation by the Consultant and the Company may take disciplinary action pursuant to these Policies and Procedures against the Consultant. Similarly, if any individual associated in any way with a corporation, partnership, LLC, trust or other entity (collectively “Business Entity”) violates the Agreement, such action(s) will be deemed a violation by the Business Entity, and the Company may take disciplinary action against the Business Entity. Likewise, if a Consultant enrolls in BubbleBird as a Business Entity, each Affiliated Party of the Business Entity shall be personally and individually bound to, and must comply with, the Terms and Conditions of the Agreement.

3.11 Solicitation for Other Companies or Products

A. A BubbleBird Consultant may participate in other direct sales, multilevel, network marketing or relationship marketing business ventures or marketing opportunities (collectively, “Network Marketing”). However, during the Term of this Agreement and for one (1) year thereafter, a BubbleBird Consultant may not recruit any BubbleBird Customers/Consultants for any other direct sales or network marketing business, unless said Customers/Consultants were personally sponsored by such Consultant.

B. The term “recruit” means actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way (either directly or through a third party), another Customer/Consultant to enroll or participate in any direct sales or network marketing opportunity. This conduct represents recruiting even if the Consultant’s actions are in response to an inquiry made by another Customer/Consultant.

C. However, you may sell non-competing products or services to BubbleBird Customers/Consultants. Specifically, a non-competing company is defined as a Network Marketing company that does NOT sell bath and body products such as soaps, lotions, bath fizzes, salt soaks, facial products and hair products.
I. Due to the visibility of our higher-ranking Consultants, BubbleBird Consultants at the rank of Platinum Leader or above agree not to actively participate in selling, recruiting, and/or consulting for any Network Marketing or party plan company, regardless if the company sells competing products or not. This provision shall apply during the term of the agreement and for six (6) months thereafter.
D. A Consultant may not display or bundle BubbleBird products or services, in sales literature, on a website or in sales meetings, with any other products or services to avoid confusing or misleading a prospective Customer or Consultant into believing there is a relationship between the BubbleBird and non-BubbleBird products and services.

E. A BubbleBird Consultant may not offer any non-BubbleBird sales opportunity, products or services at any Company-related meeting, seminar or convention, or immediately following a Company event.

F. A violation of any of the provisions in this section shall constitute unreasonable and unwarranted contractual interference between the Company and you and would inflict irreparable harm on BubbleBird. In such event BubbleBird may, at its sole discretion, impose any sanction it deems necessary and appropriate against such Consultant’s business or such Consultant’s position including termination, or seek immediate injunctive relief without the necessity of posting a bond.

3.12 Presentation of the BubbleBird Opportunity

A. In presenting the BubbleBird sales opportunity to potential Customers and Consultants, you are required to comply with the following provisions:

I. You shall not misquote or omit any significant material fact about the Compensation Plan.

II. You shall make it clear that the Compensation Plan is based upon sales of BubbleBird products and services and upon the sales of downline Consultants.

III. You shall make it clear that success can be achieved only through substantial independent efforts.

IV. You shall not make unauthorized income projections, claims, or guarantees while presenting or discussing the BubbleBird sales opportunity or Compensation Plan to prospective Customers or Consultants.

V. You may not make any claims regarding products or services of any products offered by BubbleBird, except those contained in official Company literature.

VI. You may not use official Company material to promote the BubbleBird sales opportunity in any country where the Company has not established a “presence.”

VII. You may not represent that one can be successful in the BubbleBird opportunity without diligently applying themselves. Examples of misrepresentations include, but are not expressly limited to, the following:

• You don’t have to sell anything.
• An upline Consultant will do the work for you.
• Your upline will build your organization for you.
• The Company does all the work for you.
• All you need to do is purchase products every month to stay active.

VIII. In an effort to conduct best business practices, BubbleBird has developed the Income Disclaimer Statement (“IDS”). BubbleBird IDS is designed to convey truthful, timely, and comprehensive information regarding the income that BubbleBird Consultants can earn. In order to accomplish this objective, a copy of the IDS must be presented to all prospective Consultants.

A copy of the IDS must be presented to a prospective Consultant any time the Compensation Plan is presented or discussed, or any type of income claim or earnings representation is made.

The terms “income claim” and/or “earnings representation” (collectively “income claim”) includes but is not limited to the following: (1) statements of average earnings, (2) statements of non-average earnings, (3) statements of earnings ranges, (4) income testimonials, (5) lifestyle claims, and (6) hypothetical claims. Examples of “statements of non-average earnings” include, “Our number one Consultant earned over a million dollars last year” or “Our average-ranking Consultant makes five thousand per month.” An example of a “statement of earnings ranges” is “The monthly income for our higher-ranking Consultants is ten thousand dollars on the low end to thirty thousand dollars a month on the high end.”

3.13 Sales Requirements are Governed by the Compensation Plan

A. BubbleBird Consultants may purchase BubbleBird products and then re-sell them at any price they choose unless otherwise specified. There are no exclusive territories granted to anyone. No franchise fees are applicable to a BubbleBird business.

B. The BubbleBird program is built on sales to the ultimate consumer. BubbleBird encourages its Consultants to only purchase inventory that they and their family will personally consume and/or will be used as a sales tool. Consultants must never attempt to influence any other Consultant to buy more products than they can reasonably use or demo in a month.

C. Purchasing product solely for the purpose of collecting bonuses or achieving rank is prohibited. BubbleBird retains the right to limit the amount of purchases you may make if, in our sole judgment, we believe those purchases are being made solely for qualification purposes instead of for consumption or sales tools.

3.14 Harassment

BubbleBird is committed to providing Consultants with an environment free from harassment, intimidation, and abuse from other Consultants, employees, vendors, and any other individuals. At BubbleBird, harassment of any kind will not be tolerated and is strictly prohibited, such as: derogatory or threatening comments, inappropriate sexual behavior including but not limited to unwelcome sexual advances or requests for sexual favors, displaying visual images of a sexual nature, physical or verbal harassment, or violent behavior. Consultants are encouraged to report any type of harassment incidents immediately. The Company will not tolerate acts or threats of violence and will investigate all reports. Consultants have a responsibility to act when aware of a threat or risk to any of our sales force.

4.0 ORDERING

4.1 General Order Policies

A. “Bonus Buying” is strictly and absolutely prohibited. Bonus Buying includes but is not limited to: (i) the enrollment of individuals or entities without the knowledge of and/or execution of an Agreement by such individuals or Business Entities; (ii) the fraudulent enrollment of an individual or entity as Customer/Consultant; (iii) the enrollment or attempted enrollment of non-existent individuals or Business Entities as Customers/Consultants (“phantoms”); (iv) purchasing BubbleBird products or services on behalf of another Customer/Consultant, or under another Customer’s or Consultant’s ID number, to qualify for commissions or bonuses; (v) purchasing excessive amounts of products or services that cannot reasonably be used or is not permitted to be resold; and/or (vi) any other mechanism or artifice to qualify for rank advancement, incentives, prizes, commissions, or bonuses that is not driven by bona fide product or service purchases by end user consumers.

A Consultant shall not use another Customer’s or Consultant’s credit card or debit checking account to enroll in BubbleBird or purchase products or services without the account holder’s written permission. Such documentation must be kept by the Consultant indefinitely in case the Company needs to reference this.

B. Regarding an order with an invalid or incorrect payment, BubbleBird will attempt to contact the Consultant by phone, mail or e-mail in order to obtain another form of payment. If these attempts are unsuccessful after ten (10) business days, the order will be canceled.

C. If a Consultant wants to move an order to another Consultant’s position, he, she or it (an entity) must have prior authorization, of all parties involved. BubbleBird will charge the Consultant a $20 fee for processing. If the request for the order to be moved is after commissions have been run, the Company will not be able to move the order.

D. Prices are subject to change without notice.

E. A Customer/Consultant who is a recipient of a damaged or incorrect order must notify BubbleBird within thirty (30) calendar days from receipt of the order and follow the procedures as set forth in these Policies.

A.2 Insufficient Funds

A. Any outstanding balance owed to BubbleBird by a Customer or Consultant of the Sponsoring Consultant from NSF (non-sufficient funds) checks, returned check fees or insufficient fund fees (ACH) will be withheld by BubbleBird from Sponsoring Consultant’s future bonus and commission checks.

B. All transactions involving insufficient funds through ACH or credit card, which are not resolved in a timely manner by the Consultant, constitute grounds for disciplinary sanctions.

C. If a credit card order or automatic debit is declined the first time, the Customer or Consultant will be contacted for an alternate form of payment. If payment is declined a second time, the Customer or Consultant may be deemed ineligible to purchase BubbleBird products or services.

4.3 Sales Tax Obligation

A. BubbleBird will collect and remit sales tax on Consultant orders unless a Consultant furnishes the Company with the appropriate Resale Tax Certificate form. When orders are placed with the Company, sales tax is prepaid based upon the suggested retail price. The Company will remit the sales tax to the appropriate state and local jurisdictions. The Consultant may recover the sales tax when he, she or it makes a sale.

B. BubbleBird encourages each Consultant to consult with a tax advisor for additional information for his or her business.

5.0 PAYMENT OF COMMISSIONS AND BONUSES

5.1 Bonus and Commission Qualifications, Computations, and Discrepancies

A. A Consultant must be active (as defined in the Compensation Plan) and in compliance with BubbleBird Policies and Procedures to qualify for bonuses and commissions. So long as a Consultant complies with the Terms of the Agreement, the Company shall pay commissions to such Consultant in accordance with the Compensation Plan.

B. BubbleBird will not issue a payment to a Consultant without the receipt of a completed and signed BubbleBird Consultant Agreement or Electronic Authorization.

C. BubbleBird reserves the right to postpone bonus and commission payments until such time the cumulative amount exceeds $25.

D. A BubbleBird Consultant must review his, her or its monthly statement and bonus/commission reports promptly and report any discrepancies within thirty (30) days of receipt. After the 30-day “grace period,” no additional requests will be considered for commission recalculations.

E. For additional information on payment of commissions, please review the Compensation Plan.

5.2 Adjustments to Bonuses and Commissions for Returned Products

A. A Consultant receives bonuses and commissions based on the actual sales of products and services to end consumers and to Consultants through product and service purchases. When a product or service is returned to BubbleBird for a refund from the end consumer or by a Consultant, the bonuses and commissions attributable to the returned product or service will be deducted from the Consultants who received bonuses or commissions on such sales. Deductions will occur in the month in which the refund is given and continue every pay period thereafter until the bonus/and or commission is recovered. Refunds will not be processed from the 27th day of the month through the last day of the month.

B. In the event that a Consultant terminates his, her or its business/position, and the amounts of the bonuses or commissions attributable to the returned products or services have not yet been fully recovered BubbleBird, the remainder of the outstanding balance may be offset against any other amounts that may be owed by the Company to the terminated Consultant.

6.0 SATISFACTION GUARANTEED, RETURN OF SALES AIDS, AND STARTER KIT REFUND

BubbleBird offers a one hundred percent (100%) thirty (30) day money back guarantee for all Customers. If a Customer purchased a product and is not satisfied with the product or service, the Customer may request a refund from their Consultant. The shipping fee is not refundable.

If you as a Consultant are not 100% satisfied with our products, you may return the items for a refund so long as: (i) neither you nor the Company has terminated the Agreement; (ii) the products were purchased within twelve (12) months; and (iii) the products remain in resalable condition (“Resalable Condition” as defined in these Policies’ Glossary of Terms). The refund shall be ninety percent (90%) of the purchase price. Shipping and handling charges incurred will not be refunded.

Upon cancellation of the Agreement, the Consultant may return all generic sales aids purchased within one (1) year from the date of cancellation for a refund if he, she or it (an entity) is unable to use the merchandise. A Consultant may only return sales aids he, she or it (an entity) personally purchased from the Company under his, her or its (an entity) Consultant Identification Number, and which are in Resalable Condition. Any custom orders of printed sales aids (i.e., business cards, brochures, etc.) whereon the Consultant’s contact information is imbedded or hard printed, or has been added by the Consultant, are not able to be returned in resalable condition thus are nonrefundable. Upon BubbleBird’s receipt of the products and sales aids, the Consultant will be reimbursed ninety percent (90%) of the net cost of the original purchase price(s), less shipping and handling charges. If the purchases were made through a credit card, the refund will be credited back to the same credit card account. The Company shall deduct from the reimbursement paid to the Consultant any commissions, bonuses, rebates or other incentives received by the Consultant which were associated with the merchandise that is returned.

A Consultant may request a refund on his, her or its enrollment fee if such request is made within seven (7) business days from the date of enrollment.

6.1 Return Process

A. All returns, whether by either a Customer or Consultant, must be made as follows:

I. To initiate a return, you must send email to our returns email [email protected];

II. Ship items to the address provided by BubbleBird Customer Support when you are given your return authorization;

III. Provide a copy of the invoice with the returned products or service. Such invoice must reference the return authorization and include the reason for the return.

B. All returns must be shipped to BubbleBird pre-paid, as the Company does not accept shipping collect packages. BubbleBird recommends shipping returned product by USPS or FedEx with tracking and insurance as risk of loss or damage in shipping of the returned product shall be borne solely by the Customer or Consultant. If returned product is not received at the BubbleBird Distribution Center, it is the responsibility of the Customer or Consultant to trace the shipment and no credit will be applied.

C. The return of $250 or more of products accompanied by a request for a refund within one (1) calendar year by a Consultant may constitute grounds for involuntary termination.

7.0 PRIVACY POLICY

7.1 Introduction

This Privacy Policy is to ensure that all Customers and Consultants understand and adhere to the basic principles of confidentiality.

7.2 Expectation of Privacy

A. BubbleBird recognizes and respects the importance its Customers and Consultants place on the privacy of their financial and personal information. Therefore, the Company will make reasonable efforts to safeguard the privacy of, and maintain the confidentiality of its Customers’ and Consultants’ financial and account information and nonpublic personal information.

B. By entering into the Consultant Agreement, you authorize BubbleBird Inc. to disclose your name and contact information to upline Consultants solely for activities related to the furtherance of the BubbleBird business. A Consultant hereby agrees to maintain the confidentiality and security of such information and to use it solely for the purpose of supporting and servicing his, her or its downline organization and conducting the BubbleBird business.

7.3 Employee Access to Information

BubbleBird limits the number of employees who have access to Customer’s and Consultant’s nonpublic personal information.

7.4 Restrictions on the Disclosure of Account Information

BubbleBird will not share non-public personal information or financial information about current or former Customers or Consultants with third parties, except as permitted or required by laws and regulations, court orders, or to serve the Customers’ or Consultants’ interests or to enforce its rights or obligations under these Policies and Procedures, or Consultant’s Agreement or with written permission from the accountholder on file.

8.0 PROPRIETARY INFORMATION AND TRADE SECRETS

8.1 Business Reports, Lists, and Proprietary Information

By completing and signing the BubbleBird Consultant Agreement, you acknowledge that Business Reports, lists of Customer and Consultant names and contact information and any other information, which contain financial, scientific or other information both written or otherwise circulated by BubbleBird pertaining to the business of BubbleBird (collectively, “Reports”), are confidential and proprietary information and trade secrets belonging to BubbleBird, Inc.

8.2 Obligation of Confidentiality

During the Term of the BubbleBird Consultant Agreement and for a period of five (5) years after the termination or expiration of the Agreement between you and the Company, you shall not:

A. Use the information in the Reports to compete with the Company or for any purpose other than promoting your BubbleBird business;

B. Use or disclose to any person or entity any confidential information contained in the Reports, including the replication of the genealogy in another Network Marketing company.

8.3 Breach and Remedies

The Consultant acknowledges that such proprietary information is of such character as to render it unique and that disclosure or use thereof in violation of this provision will result in irreparable damage to BubbleBird and to independent BubbleBird businesses. The Company and its Consultants will be entitled to injunctive relief or to recover damages against any Consultant who violates this provision in any action to enforce its rights under this section. The prevailing party shall be entitled to an award of attorney’s fees, court costs and expenses.

8.4 Return of Materials

Upon demand by BubbleBird, any current or former Consultant will return the original and all copies of all “Reports” to the Company together with any Company confidential information in such person’s possession.

9.0 ADVERTISING, PROMOTIONAL MATERIAL, USE OF COMPANY NAMES
AND TRADEMARKS

9.1 Labeling, Packaging, and Displaying Products

A. A BubbleBird Consultant may not re-label, re-package, refill, or alter labels of any BubbleBird product, or service, information, materials or program(s) in any way. BubbleBird products and services must only be sold in their original containers from BubbleBird. Such re-labeling or re-packaging violates federal and state laws, which may result in criminal or civil penalties or liability.

B. A Consultant may display the BubbleBird trade name at any appropriate display booth (such as trade shows) by adhering to the following guidelines:

I. It is the responsibility of the Consultant to check with the event to make sure there are no other BubbleBird representatives at the event.

II. Only one Consultant may display at an event.

III. Any display graphics, tents, table clothes, flags or other event displays must follow the Company’s style guide and branding. Approved event booth supplies may be purchased from the Company.

C. BubbleBird reserves the right to refuse authorization to participate at any function that it does not deem a suitable forum for the promotion of its products and services, or the BubbleBird sales opportunity. BubbleBird Consultants do not need approval to have a booth at a tradeshow or expo or business location.

9.2 Use of Company Names and Protected Materials

A. A BubbleBird Consultant must safeguard and promote the good reputation of BubbleBird and the products and services it markets. The marketing and promotion of the Company, the Company sales opportunity, the Compensation Plan, and BubbleBird products and services will be consistent with the public interest, and must avoid all discourteous, deceptive, misleading, unethical or immoral conduct and practices.

B. All promotional materials supplied or created by BubbleBird must be used in their original form and cannot be changed, amended or altered except with prior written approval from the Compliance Department.

C. The name of BubbleBird, each of its product and service names and other names that have been adopted by BubbleBird in connection with its business are proprietary trade names, trademarks and service marks of BubbleBird, Inc. As such, these marks are of great value to the Company and are supplied to Consultants for their use only in an expressly authorized manner.

D. A BubbleBird Consultant’s use of the name “BubbleBird” is restricted to protect the Company’s proprietary rights, ensuring that the BubbleBird protected names will not be lost or compromised by unauthorized use. Use of the BubbleBird name on any item not produced by the Company is prohibited except as follows:

I. [Consultant name] BubbleBird Consultant, [Rank is Optional].

As an example, this would appear as follows:

II. Sally Johnson, BubbleBird Consultant, [Rank]

E. Further procedures relating to the use of the BubbleBird name are as follows:

I. All stationary (i.e. letterhead, envelopes, and business cards) bearing the BubbleBird name or logo intended for use by the Consultant must be approved in writing by the Compliance Department.

II. BubbleBird Consultants may not use the name “BubbleBird Inc.” or “BubbleBird,” or “BubbleBird Corporate” in answering the telephone, creating a voice message or using an answering service, such as to give the impression to the caller that they have reached the corporate office. They may state, “BubbleBird Consultant.” Similarly, a Consultant should not use “Home Office,” “Corporation,” or any other term or phrase that implies Corporate headquarters in a third-party website.

F. Certain photos and graphic images used by the Company in its advertising, packaging, and websites are the result of paid contracts with outside vendors that do not extend to Consultants. If a Consultant wants to use these photos or graphic images, they must negotiate individual contracts with the vendors for a fee.BubbleBird will provide approved photos and graphics in the back office.

G. A BubbleBird Consultant shall not appear on or make use of television or radioto promote or discuss BubbleBird or its programs, products or services without prior written permission from the Compliance Department. Similarly, a Consultant may not produce for sale or distribution any Company event or speech, nor may a Consultant reproduce BubbleBird audio or video clips for sale or for personal use without prior written permission from the BubbleBird Compliance Department.

H. BubbleBird reserves the right to rescind its prior approval of any sales aid or promotional material to comply with changing laws and regulations and may request the removal from the marketplace of such materials without financial obligation to the affected Consultant.

I. A Consultant shall not promote non-BubbleBird products or services in conjunction with BubbleBird products or services on the same websites or same advertisement without prior approval from the Compliance Department.

9.3 Faxes and E-mail Limitations

A. Except as provided in this section, a Consultant may not use or transmit unsolicited faxes, email, mass email distribution, or “spamming” that advertises or promotes the operation of his or BubbleBird business. The exceptions are:

I. Faxes or e-mailing any person who has given prior permission or invitation;

II. Faxing or e-mailing any person with whom the Consultant has established a prior business or personal relationship.

B. In all states where prohibited by law, a Consultant may not transmit, or cause to be transmitted through a third party, (by telephone, facsimile, computer or other device), an unsolicited advertisement to any equipment, which has the capacity to transcribe text or images from an electronic signal received over a regular telephone line, cable line, ISDN, T1 or any other signal carrying device, except as set forth in this section.

C. All faxes, e-mail or computer broadcasted documents subject to this provision shall include each of the following:

I. A clear impression based on the context of the message that the fax or e-mail message is an advertisement;

II. A clear return path or routing information;

III. The use of legal and proper domain name;

IV. A clear and obvious notice of the opportunity to decline to receive further commercial facsimile or e-mail messages from the sender;

V. Unsubscribe or opt-out instructions should be the very first text in the body of the message box in the same size text as the majority of the message;

VI. The true and correct name of the sender, valid senders’ fax or e-mail address, and a valid sender physical address;

VII. The date and time of the transmission;

VIII. Upon notification by recipient of his or her request not to receive further faxed or e-mailed documents, a BubbleBird Consultant shall not transmit any further documents to that recipient.

D. All e-mail or computer broadcasted documents subject to this provision shall not include any of the following:

I. Use of any third-party domain name without permission;

II. Sexually explicit materials.

9.4 Internet and Third-Party Website Restrictions

A. A Consultant may not use or attempt to register any of BubbleBird’s trade names, trademarks, service names, service marks, product names, URLs, advertising phrases, the Company’s name or any derivative thereof, for any purpose including, but not limited to, Internet domain names (URL), third party websites, e-mail addresses, web pages, or blogs.

B. A Consultant may not sell BubbleBird products, services or offer the sales opportunity using “online auctions,” such as eBay®, or “online marketplaces” like Etsy and Amazon. Consultants may not enlist or knowingly allow a third party to sell BubbleBird products on online auctions or online marketplaces.

C. All Consultants may have one (1) approved third-party website. A third-party website is a BubbleBird-approved personal website that is hosted on non-BubbleBird servers and has no affiliation with the Company. Any Consultant who wishes to develop their own third-party website must submit a properly completed third-party website Application and Agreement along with the proper website registration fee and receive BubbleBird’s prior written approval before going live with said site. Third-party websites may be used to promote your business and BubbleBird’s products so long as the website adheres to BubbleBird’s advertising policies. Moreover, no orders may be placed through third-party websites, and no enrollments may occur through a third-party website. If you wish to use any third-party website, you must do the following:

a. Identify yourself as a BubbleBird Consultant;
b. Use only the approved images and wording authorized by BubbleBird;
c. Adhere to the branding, trademark, and image usage policies described in this document.
d. Adhere to any other provision regarding the use of a third-party website described in this document;
e. Agree to give the Compliance Department at Corporate access to the third-party website and, if the website is password protected, Compliance must receive passwords or credentials allowing unlimited access.
f. Agree to modify your website to comply with current or future BubbleBird policies.

D. All marketing materials used on a Consultant’s third-party website must be provided by BubbleBird or approved in writing by the Company.

E. To avoid confusion, the following three elements must also be prominently displayed at the top of every page of your third-party website:

1. The BubbleBird Consultant Logo
2. Your Name and Title
3. BubbleBird Corporate Website Redirect Button

F. A Consultant may not use third-party sites that contain materials copied from corporate sources (such as BubbleBird brochures, CDs, videos, tapes, events, presentations, and corporate websites). This Policy ensures brand consistency, allows Customers and Consultants to stay up to date with changing products, services and information, facilitates enrollment under the correct Sponsor, and assists in compliance with government regulations.

G. If the independent BubbleBird business of a Consultant who has received authorization to create and post an third-party website is voluntarily or involuntarily canceled for any reason, or if BubbleBird revokes its authorization allowing the Consultant to maintain a third-party website, the Consultant shall assign the URL to his/her third-party website to the Company within three (3) days from the date of the cancellation and/or re-direct all traffic to the site as directed by the Company. BubbleBird reserves the right to revoke any Consultant’s right to use a third-party website at any time if BubbleBird believes that such revocation is in the best interest of the Company, its Consultants, and Customers. Decisions and corrective actions in this area are at the Company’s sole discretion.

H. PROFILES A CONSULTANT GENERATES IN ANY SOCIAL COMMUNITY WHERE BUBBLEBIRD IS DISCUSSED OR MENTIONED MUST CLEARLY IDENTIFY THE CONSULTANT AS A BUBBLEBIRD CONSULTANT, and when a Consultant participates in those communities, Consultants must avoid inappropriate conversations, comments, images, video, audio, applications or any other adult, profane, discriminatory or vulgar content. The determination of what is inappropriate is at BubbleBird’s sole discretion, and offending Consultants will be subject to disciplinary action. Banner ads and images used on these sites must be current and must come from the Company approved library. If a link is provided, it must link to the posting Consultant’s replicated website or an approved third-party website.

I. Anonymous postings or use of an alias on any Social Media (for more information on Social Media, please see Section 9.5 below) site is prohibited, and offending Consultants will be subject to disciplinary action.

J. Consultants may not use blog spam, spamdexing or any other mass-replicated methods to leave blog comments. Comments Consultants create or leave must be useful, unique, relevant and specific to the blog’s article.

K. Consultants must disclose their full name on all Social Media postings, and conspicuously identify themselves as a Consultant for BubbleBird. Anonymous postings or use of an alias is prohibited. Consultants may only use the name BubbleBird in social media names when combined with their own name. As an example, an acceptable Social Media handle would be as follows: BubbleBird [Consultant’s Name].

L. Postings that are false, misleading, or deceptive are prohibited. This includes, but is not limited to, false or deceptive postings relating to the BubbleBird income opportunity, BubbleBird’s products and services, and/or your biographical information and credentials.

M. Consultants are personally responsible for their postings and all other online activity that relates to BubbleBird. Therefore, even if a Consultant does not own or operate a blog or Social Media site, if a Consultant posts to any such site that relates to BubbleBird or which can be traced to the Company, the Consultant is responsible for the posting. Consultants are also responsible for postings which occur on any blog or Social Media site that the Consultant owns, operates, or controls.

N. As a BubbleBird Consultant, it is important to not converse with any person who places a negative post against you, other Consultants, or BubbleBird. Report negative posts to the Company Compliance Department. Responding to such negative posts often simply fuels a discussion with someone carrying a grudge that does not hold themselves to the same high standards as the Company, thus damaging the reputation and goodwill of the Company.

O. The distinction between a Social Media site and a website may not be clear-cut, because some Social Media sites are particularly robust, BubbleBird therefore reserves the sole and exclusive right to classify certain Social Media sites as third-party websites and require that Consultants using, or who wish to use, such sites adhere to the BubbleBird’s policies relating to third-party websites.

P. If your BubbleBird business is cancelled for any reason, you must discontinue using the BubbleBird name, and all of the Company’s trademarks, trade names, service marks, and other intellectual property, and all derivatives of such marks and intellectual property, in any postings and all Social Media sites that you utilize. If you post on any Social Media site on which you have previously identified yourself as an independent BubbleBird Consultant, you must conspicuously disclose that you are no longer such.

Q. Failure to comply with these Policies for conducting business online may result in the Consultant losing their right to advertise and market BubbleBird products, services and BubbleBird’s sales opportunity online in addition to any other disciplinary action available under the Policies and Procedures.

9.5 Digital and Social Media

A. Consultants may upload, submit, and/or publish BubbleBird-related video, audio, or photo content that they develop and create so long as such video, audio, or photo content aligns with the Company’s values, contribute to the BubbleBird community’s greater good, and be in compliance with these Policies and Procedures. Consultants may not upload, submit, or publish any content (video, audio, presentations or any computer files) received from the Company or captured at official Company events or in buildings owned or operated by the Company without prior written permission.

B. Consultants must adhere to all of Company Policies and Procedures in their use of Social Media, including but not limited to the external website polices set forth in these Policies and Procedures. In addition, the following policies specifically apply to Consultant’s Social Media use.

I. Consultants must disclose their real name on all Social Media postings, and conspicuously identify themselves as a BubbleBird Consultant. Anonymous posting or use of an alias is prohibited.

II. Postings that are false, misleading, or deceptive are prohibited. This includes, but is not limited to, false or deceptive postings relating to the BubbleBird sales opportunity, the products and services, and/or your biographical information and credentials.

III. If the trademarks, trade names, service marks, copyrights, or intellectual property of any third party are used in any posting, it is the responsibility of the Consultant to ensure that they 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 Consultants must adhere to any restrictions and conditions that the owner of the intellectual property places on the use of its property.

IV. Consultants must ensure that their postings are truthful and accurate. This requires that Consultants fact-check all material they post online. Use of offensive language is prohibited.

C. In addition to meeting all other requirements specified in these Policies & Procedures, should a Consultant utilize any form of social media, including but not limited to Facebook, Instagram, Twitter, LinkedIn, YouTube, Snapchat or Pinterest, the Consultant agrees to each of the following:

• Consultants may post or “pin” photographs of the Company products on a social media site, but may not overlay the BubbleBird logo in their photos. Only photos that are provided by the Company and downloaded from the Consultant’s Back Office may be used with the company logo.

D. If the Consultant’s business is cancelled for any reason or if the Consultant becomes inactive, the Consultant must deactivate their BubbleBird social media profile and/or pages that promote the Company’s products.

9.6 Advertising and Promotional Materials

A. Consultants are permitted to create their own content that is non-BubbleBird and are solely responsible and liable for their own content, messaging, claims, and information and must ensure that it appropriately adheres to these Policies and Procedures. Additionally, external websites must not contain disingenuous popup ads or malicious code. Decisions and corrective actions in this area are at the Company’s sole discretion.

B. You may not advertise any BubbleBird products or services at a price LESS than the highest company published, established retail price of ONE offering of the BubbleBird product or service plus shipping, handling and applicable taxes. No special enticement advertising is allowed. This includes, but is not limited to, free shipping, or other such offers that grant advantages beyond those available through the Company.

C. Advertising and all forms of communications must adhere to principles of honesty and propriety.

D. All advertising, including, but not limited to, print, Internet, computer bulletin boards, television, radio, etc., are subject to prior written approval by the Compliance Department at least five (5) business days or more before use.

E. All requests for approvals with respect to advertising must be directed in writing to the Compliance Department.

F. BubbleBird approval is not required to place blind ads that do not mention BubbleBird, its employees, any of its products, services, designs, symbols, programs, and trademarked, copyrighted, or otherwise protected materials.

G. BubbleBird reserves the right to rescind its prior approval of submitted advertising or promotional materials in order to comply with changing laws and regulations, and may require the removal of such advertisements from the marketplace without obligation to the affected Consultant.

9.7 Testimonial Permission

By signing the BubbleBird Consultant Agreement, you give BubbleBird permission to use your testimonial or image and likeness in corporate sales materials, including but not limited to print media, electronic media, audio and video. In consideration of being allowed to participate in the BubbleBird sales opportunity, you waive any right to be compensated for the use of your testimonial or image and likeness even though BubbleBird may be paid for items or sales materials containing such image and likeness. In some cases, a Consultant’s testimonial may appear in another Consultant’s advertising materials. If a Consultant does not wish to participate in BubbleBird sales and marketing materials, he or she should provide a written notice to the Compliance Department to ensure that his or her testimonial or image and likeness will not be used in any corporate materials, corporate recognition pieces, advertising or recordings of annual events.

9.8 Telemarketing Limitations

A. A BubbleBird Consultant must not engage in telemarketing in relation to the operation of a BubbleBird business. The term “telemarketing” means the placing of one or more telephone calls to an individual or entity to induce the purchase of BubbleBird products or services, or to recruit them for the BubbleBird sales opportunity.

B. The Federal Trade Commission (“FTC”) and the Federal Communications Commission (“FCC”) 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.

C. While a Consultant may not consider himself or herself a “telemarketer” in the traditional sense, these regulations broadly define the term “telemarketer” and “telemarketing” so that the unintentional action of calling someone whose telephone number is listed on the Federal “Do Not Call” registry could cause the Consultant to violate the law. These regulations must not be taken lightly, as they carry significant penalties (up to $11,000 per violation).

D. “Cold calls” or “state-to-state calls” made to prospective Customers or Consultants that promote either BubbleBird products, services or the BubbleBird sales opportunity is considered telemarketing and is prohibited.

E. Exceptions to Telemarketing Regulations

A BubbleBird Consultant may place telephone calls to prospective Customers or Consultants under the following limited situations:

I. If the Consultant has an established business relationship with the prospect;

II. In response to the prospect’s personal inquiry or application regarding a product or service offered by BubbleBird Consultant, within three (3) months immediately before the date of such a call;

III. If the Consultant receives written and signed permission from the prospect authorizing the Consultant to call;

IV. If the call is to family members, personal friends, and acquaintances. However, if a Consultant makes a habit of collecting business cards from everyone he/she meets and subsequently calls them, the FTC may consider this a form of telemarketing that is not subject to this exemption;

V. BubbleBird Consultants engaged in calling “acquaintances,” must make such calls on an occasional basis only and not as a routine practice.

F. A Consultant shall not use automatic telephone dialing systems in the operation of his or her BubbleBird businesses.

G. Failure to abide by BubbleBird policies or regulations as set forth by the FTC and FCC regarding telemarketing may lead to sanctions against the Consultant’s business, up to and including termination of the position.

H. By signing the Consultant Agreement, or by accepting commission checks, other payments or awards from BubbleBird, you give the Company permission for the Company and/or other Consultants to contact you as permitted under the Federal Do Not Call regulations.

I. In the event a Consultant violates this section, BubbleBird reserves the right to institute legal proceedings to obtain monetary or equitable relief.

10.0 CHANGES TO A CONSULTANT’S BUBBLEBIRD BUSINESS

10.1 Modification of the Consultant Agreement

A BubbleBird Consultant may modify his, her or its existing Consultant Agreement (i.e., change a social security number to a Federal ID number, add a spouse or partner to the account, or change the form of ownership from an individual to a Business Entity owned by the Consultant) by submitting a written request, accompanied by a new Consultant Agreement and the Business Registration Form, if applicable, completed with fresh signatures (not a “crossed out” or “white-out” version of the first Agreement), and any appropriate supporting documentation.

10.2 Change Sponsor or Placement for Active Consultants

A. Maintaining the integrity of the organizational structure is mandatory for the success of BubbleBird and our independent Consultants. As such, under exceptional circumstances at the discretion of the Company, a request to change placement may only be made within the first 30 days of initial enrollment as a Consultant. Furthermore, such changes may only occur within the same organization.

B. New Consultants or their original Sponsor may request a change of Sponsor or Placement within the first 30 days of enrollment for the purpose of structuring an organization. The new Consultant Agreement must be received within 30 days of enrollment for commission calculations to be effective with the requested change.

C. To change or correct the Sponsor, a Consultant must comply with following procedures:

I. Submit a Sponsor Placement Transfer Form;

II. Submit a BubbleBird Consultant Agreement showing the correct Sponsor and Placement, or any appropriate supporting documentation;

III. The Consultant Agreement must be a new, completed document bearing “fresh” signatures, not a “crossed-out” or “white-out” version of the first Agreement.

D. Upon approval, the Consultant’s downline, if any, will transfer with the Consultant.

E. If one transfer has already been made a $20 fee will be assessed for the second and for each transfer thereafter.

F. After the first 30 days from initial enrollment, the Company will honor the Sponsor/Placement as shown:

I. On the most recently signed Consultant Agreement on file; or

II. Self-enrolled on the website (i.e., electronically signed web Agreement).

G. BubbleBird retains the right to approve or deny any requests to change Sponsor or Placement, and to correct any errors related thereto at any time and in whatever manner it deems necessary.

10.3 Change Sponsor or Placement for Inactive Consultants

A. At the discretion of the Company, Consultants who have neither personally purchased nor sold products within a twelve (12) month period, and who have not tendered a letter of resignation, are eligible to re-enroll in BubbleBird under the Sponsor/Placement of their choice.

B. Upon written notice to BubbleBird that a former Consultant wishes to re-enroll, the Company will “compress” (close) the original account. A new BubbleBird ID number will then be issued to the former Consultant.

C. Such Consultant does not retain former rank, downline, or rights to commission checks from his, her or its former organizations.

D. The Company reserves the right to correct Sponsor or Placement errors at any time and in whatever manner it deems necessary.

10.4 Change Organizations

A. If a BubbleBird Consultant wishes to transfer organizations, he, she or it must submit a letter of resignation to the Compliance Department and remain inactive with or in BubbleBird for six (6) months from the receipt of the letter before being eligible to re-enroll under a different Sponsor/Placement.

B. BubbleBird retains the right to approve or deny any request to re-enroll after a Consultant’s resignation.

C. If re-enrollment is approved, the former Consultant will be issued a new BubbleBird ID number and will be required to submit a new Consultant Agreement. The Consultant will not be entitled to keep any former rank, downline, or rights to commission checks from any prior organization.

10.5 Unethical Sponsoring

A. Unethical sponsoring activities include, but are not limited to, enticing, bidding or engaging in unhealthy competition in trying to acquire a prospect or new Consultant from another Consultant or influencing another Consultant to transfer to a different Sponsor.

B. Allegations of unethical sponsoring must be reported in writing to the BubbleBird Compliance Department within the first 90 days of enrollment. If the reports are substantiated, BubbleBird may transfer the Consultant or the Consultant’s downline to another sponsor, Placement or organization without approval from the current up-line Sponsor or Placement Consultants. BubbleBird remains the final authority in such cases.

C. BubbleBird prohibits the act of “Stacking.” Stacking is the unauthorized manipulation of the BubbleBird compensation system and/or the marketing plan in order to trigger commissions or cause a promotion off a downline Consultant in an unearned manner. One example of stacking occurs when a Sponsor places participants under an inactive downline without his or her knowledge in order to trigger unearned qualification for commissioning. Stacking is unethical and unacceptable behavior, and as such, it is a punishable offense with measures up to and including the termination of the positions and businesses of all individuals and/or entities found to be directly involved.

C. Should Consultants engage in solicitation and/or enticement of members of another direct sales company to sell or distribute BubbleBird products and services to, they bear the risk of being sued by the other direct sales company. If any lawsuit, arbitration, or mediation is brought against a Consultant alleging that they engaged in inappropriate recruiting activity of another company’s sales force or Customers, BubbleBird will not pay any of Consultant’s defense costs or legal fees, nor will BubbleBird indemnify the Consultant for any judgment award, or settlement.

10.6 Sell, Assign or Delegate Ownership

A. In order to preserve the integrity of the hierarchical structure, it is necessary for BubbleBird to place restrictions on the transfer, assignment, or sale of a position.

B. A BubbleBird Consultant may not sell or assign his, her or its rights or delegate his, her or its business as a Consultant without prior written approval by BubbleBird, which approval will not be unreasonably withheld. Any attempted sale, assignment, or delegation without such approval may be voided at the discretion of the Company.

C. Should the sale be approved by BubbleBird, the Buyer assumes the position of the Seller at the current qualified title, but at the current “paid as” rank, at the time of the sale and acquires the Seller’s Downline.

D. To request corporate authorization for a sale or transfer of a BubbleBird position, the following items must be submitted to the Company Compliance Department:

I. A Sale/Transfer of position Form properly completed, with the requisite signatures;

II. A copy of the Sales Agreement signed and dated by both Buyer and Seller;

III. A BubbleBird Consultant Agreement completed and signed by the Buyer;

IV. Payment of the $100 administration fee; and/or

V. Any additional supporting documentation requested by BubbleBird.

E. Any debt obligations that either Seller or Buyer may have with BubbleBird must be satisfied prior to the approval of the sale or transfer by the Company.

F. A Consultant who sells his, her or its position is not eligible to re-enroll as a BubbleBird Consultant in any organization for six (6) full calendar months following the date of the sale except as otherwise expressly set forth in these Policies and Procedures.

10.7 Separating a BubbleBird Business

A. Pending a divorce or dissolution of a partnership or other business entity, the parties must adopt one of the following methods of operation:

I. One of the parties may, with the written consent of the other(s), operate the BubbleBird business whereby the relinquishing spouse, shareholders, partners, members or trustees authorize BubbleBird to deal directly and solely with the other Spouse, non-relinquishing shareholder, partner, member or trustee;

II. The parties may continue to operate the BubbleBird business jointly on a “business as usual” basis, whereupon all compensation paid by BubbleBird will be paid in the name designated as the Consultant or in the name of the entity to be divided, as the parties may independently agree between them. If no name is stipulated, BubbleBird will pay compensation to the name on record and in such event, the Consultant named on the account shall indemnify BubbleBird from any claims from the other business owner(s) or the other spouse with respect to such payment.

B. BubbleBird recognizes only one Downline organization and will issue only one commission check per BubbleBird business per commission cycle. Under no circumstances will the Downline of an organization be divided, nor will BubbleBird split commission and/or bonus checks.

C. If a relinquishing spouse, partner or owner of the business has completely relinquished (“Relinquishing Party”), in writing, all rights to the original BubbleBird business, he, she or it may immediately thereafter re-enroll under the Sponsor and Placement of his, her or its choice. In such cases, however, the Relinquishing Party shall have no rights to, and shall not solicit, any Consultant or active Customer in the former organization, and must develop a new business in the same manner as any other new BubbleBird Consultant. A Consultant in the Relinquishing Party’s former Downline who wishes to transfer to the Relinquishing Party’s new organization or to any other organization, must comply with the requirements in Section 12.5.

10.8 Succession

A. Upon the death or incapacity of a Consultant, the Consultant’s business may be passed on to his or her legal successors in interest (successor). Whenever a BubbleBird business is transferred by will or other testamentary process, the successor acquires the right to collect all bonuses and commissions of the deceased Consultant’s sales organization. The successor must:

I. Complete and sign a new BubbleBird Consultant Agreement;

II. Comply with the Terms and provisions of the Consultant Agreement; and

III. Meet all of the qualifications for the last rank achieved by the former Consultant.

B. The successor must provide the Company with an “address of record” to which all bonus and commission Payments will be sent. Payments will be based on the current performance of the position, not the highest rank or volume achieved.

C. If the business is bequeathed to joint devisees (successors), they must form a business entity and acquire a Federal taxpayer identification number. BubbleBird will issue all bonus and commission payments and one 1099 Miscellaneous Income Tax form to the managing business entity only.

D. Appropriate legal documentation must be submitted to the Company Compliance Department to ensure the transfer is done properly. To affect a testamentary transfer of a BubbleBird business, the successor must provide the following to the Compliance Department:

I. A certified copy of the death certificate; and

II. A notarized copy of the will or other appropriate legal documentation establishing the successor’s right to the BubbleBird business.

E. To complete a transfer of the BubbleBird business because of incapacity, the successor must provide the following to the Compliance Department:

I. A notarized copy of an appointment as trustee;

II. A notarized copy of the trust document or other appropriate legal documentation establishing the trustee’s right to administer the BubbleBird business; and

III. A completed Consultant Agreement executed by the trustee.

F. If the successor is already an existing Consultant, BubbleBird will allow such Consultant to keep his, her or its own position plus the inherited position active for up to six (6) months. By the end of the 6-month period, the Consultant must have compressed (if applicable), sold or otherwise transferred either the existing position or the inherited position.

G. If the successor wishes to terminate the Consultant position, he, she or it (an entity) must submit a notarized statement stating the desire to terminate the position, along with a certified copy of the death certificate, appointment as trustee, and/or any other appropriate legal documentation.

H. Upon written request, BubbleBird may grant a one (1) month bereavement waiver and pay out at the last “paid as” rank.

10.9 Resignation/Voluntary Termination

A. A Consultant may immediately terminate his or her position and business by submitting a written notice or email to the Company Compliance Department. The written notice must include the following:

I. The Consultant’s intent to resign and the date of resignation;

II. BubbleBird Identification Number;

III. Reason for resigning; and

IV. Signature.

B. A BubbleBird Consultant may not use resignation as a way to immediately change Sponsor and Placement. Instead, the Consultant who has voluntarily resigned is not eligible to reapply for a position or have any financial interest in a or any BubbleBird business for six (6) months from the receipt of the written notice of resignation.

10.10 Involuntary Termination

A. BubbleBird reserves the right to terminate a Consultant’s business and position for, but not limited to, the following reasons:

I. Violation of any Terms or Conditions of the Consultant Agreement;

II. Violation of any provision in these Policies and Procedures;

III. Violation of any provision in the Compensation Plan;

IV. Violation of any applicable law, ordinance, or regulation regarding the BubbleBird business;

V. Engaging in unethical business practices or violating standards of fair dealing; or

VI. Returning over $250 worth of products for a refund within a twelve (12) month period.

B. BubbleBird will notify the Consultant in writing at his or her last known mailing or email address of its intent to terminate the Consultant’s position and business, providing the reasons for termination therein.

C. If a decision is made by BubbleBird to terminate the Consultant’s position and business, BubbleBird will inform the Consultant in writing that the position is terminated effective as of the date of the written notification. The decision of BubbleBird is considered final and not subject to further review.

D. The former Consultant shall thereafter be prohibited from using the names, marks or signs, labels, stationery, advertising, or business material referring to or relating to any BubbleBird products or services. BubbleBird will notify the active Upline Sponsor within ten (10) days after termination. The organization of the terminated Consultant will “roll up” to the active Upline Sponsor on record.

E. The BubbleBird Consultant who is involuntarily terminated by the Company may not reapply for a position, either under his, her or its present name or any other name or entity, without the express written consent of an officer of BubbleBird, Inc. following a review by the Company Compliance Department. In any event, such Consultant may not re-apply for a position for twelve (12) months from the date of termination.

10.11 Effect of Cancellation

A. Following a Consultant’s cancellation for inactivity or voluntary or involuntary termination (collectively, a “cancellation”) such Consultant:

I. Shall have no right, title, claim or interest to any commission or bonus from the sales generated by the Consultant’s former organization or any other payments in association with the Consultant’s former independent position;

II. Effectively waives any and all claims to property rights or any interest in or to the Consultant’s former Downline organization;

III. Shall receive commissions and bonuses only for the last full pay period in which he, she or it was active prior to cancellation, less any amounts withheld during an investigation preceding an involuntary cancellation, and less any other amounts owed to BubbleBird.

11.0 DISCIPLINARY SANCTIONS

11.1 Imposition of Disciplinary Action – Purpose

It is the spirit of BubbleBird that integrity and fairness should pervade among its sales force, thereby providing everyone with an equal opportunity to build a successful business. Therefore, the Company reserves the right to impose disciplinary sanctions at any time, when it has determined that a Consultant has violated the Agreement or any of these Policies and Procedures or the Compensation Plan as they may be amended from time to time by the Company.

11.2 Consequences and Remedies of Breach

A. Disciplinary actions may include one or more of the following:

I. Monitoring a Consultant’s conduct over a specified period of time to assure compliance;

II. Issuance of a written warning or requiring the Consultant to take immediate corrective action;

III. Imposition of a fine (which may be imposed immediately or withheld from future commission payments) or the withholding of commission payments (“Commission Hold”) until the matter causing the Commission Hold is resolved or until BubbleBird receives adequate additional assurances from the Consultant to ensure future compliance;

IV. Suspension from participation in Company or Consultant events, rewards, or recognition;

V. Suspension of the BubbleBird Consultant Agreement and position for one or more pay periods;

VI. Involuntary termination of the Consultant’s Agreement and position;

VII. Any other measure which BubbleBird deems feasible and appropriate to justly resolve injuries caused by the Consultant’s policy violation(s) or contractual breach(es); OR

VIII. Legal proceedings for monetary or equitable relief.

12.0 DISPUTE RESOLUTION

12.1 Grievances

A. If a Consultant has a grievance or complaint against another Consultant regarding any practice or conduct relating to their respective BubbleBird businesses, he, she or it is encouraged to resolve the issue directly with the other party. If an agreement cannot be reached, it must be reported directly to the Compliance Department as outlined below in this Section.

B. The Compliance Department will be the final authority on settling such grievance or complaint and its written decision shall be final and binding on the Consultants involved.

C. BubbleBird will confine its involvement to disputes regarding BubbleBird business matters only. The Company will not decide issues that involve personality conflicts or unprofessional conduct by or between Consultants outside the context of a BubbleBird business. These issues go beyond the scope of the Company and may not be used to justify a Sponsor or Placement change or a transfer to another BubbleBird organization.

D. BubbleBird does not consider, enforce, or mediate third party agreements between Consultants, nor does it provide names, funding, or advice for obtaining outside legal counsel.

E. Process for Grievances:

I. The BubbleBird Consultant should submit a written letter or email directly to the Compliance Department. The letter shall set forth the details of the incident as follows:

a. The nature of the violation and specific facts to support the allegations;
b. Dates;
c. Number of occurrences;
d. Persons involved; and
e. Supporting documentation.

II. Upon receipt of the written complaint, BubbleBird will conduct an investigation according to the following procedures:

a. The Compliance Department will send an acknowledgment of receipt to the complaining Consultant;
b. The Compliance Department will thoroughly investigate the complaint, consider all the submitted information it deems relevant, including information from collateral sources. Due to the unique nature of each situation, determinations of the appropriate remedy will be on a case by case basis, and the length of time to reach a resolution will vary.
d. During the course of the investigation, the Compliance Department will only provide periodic updates simply stating that the investigation is ongoing. No other information will be released during this time. Consultant calls, letters, and requests for “progress reports” during the course of the investigation will not be answered or returned.

E. BubbleBird will make a final decision and timely notify the BubbleBird Consultant(s) involved.

12.2 Arbitration

A. Any controversy or claim arising out of or relating to the BubbleBird Consultant Agreement, these Policies and Procedures, or the breach thereof, the Consultant’s business or any dispute between the Company and the Consultant, shall be settled by binding and confidential arbitration administered by the American Arbitration Association under its commercial arbitration rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Any such arbitration shall be held in Woodridge, Illinois. There shall be one arbitrator, who shall have expertise in business law transactions and who shall be knowledgeable in the direct selling industry, selected from a panel provided by the American Arbitration Association.

B. The prevailing party in any such arbitration shall be entitled to receive from the losing party, all costs and expenses of arbitration, including reasonable attorney’s fees and filing fees. The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to judgment in any court of competent jurisdiction.

C. This agreement to arbitration shall survive any termination or expiration of the Consultant Agreement.

D. Nothing in these Policies and Procedures shall prevent BubbleBird from applying for or obtaining from any court having jurisdiction a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction, or other relief available to safeguard and protect Company interests or its Confidential Information prior to, during or following the filing of an arbitration or other proceeding, or pending the rendition of a decision or award in connection with any arbitration or other proceeding.

E. NO CLASS ACTION, OR OTHER REPRESENTATIVE ACTION OR PRIVATE ATTORNEY GENERAL ACTION OR JOINDER OR CONSOLIDATION OF ANY CLAIM WITH A CLAIM OF ANOTHER PERSON OR CLASS OF CLAIMANTS SHALL BE ALLOWABLE.

F. These Policies and Procedures and any arbitration involving a Consultant and BubbleBird shall be governed by and construed in accordance with the laws of the state of Illinois, without reference to its principles of conflict of laws.

12.3 Damages

A. In any case which arises from or relates to the wrongful termination of the Consultant Agreement and/or a Consultant’s BubbleBird business, the Company and the Consultant agree that damages will be extremely difficult to ascertain. Therefore, the Company and Consultant stipulate that if the involuntary termination of the Consultant Agreement and/or loss of the Consultant’s BubbleBird business is proven and held to be wrongful under any theory of law, the Consultant’s sole remedy shall be liquidated damages calculated as follows:
I. For Consultant’s at the “Paid As” rank of Silver Consultant or above (with the exception of paragraph II below), liquidated damages shall be in the amount of his/her gross compensation that he/she earned pursuant to the BubbleBird Compensation Plan in the twelve (12) months immediately preceding the termination.
II. For Consultant’s at the “Paid As” rank of Diamond Leader or above liquidated damages shall be in the amount of his/her gross compensation that he/she earned pursuant to the BubbleBird Compensation Plan in the twenty-four (24) months immediately preceding the termination.
B. In any action arising from or relating to the Agreement, the BubbleBird business, or the relationship between the Company and the Consultant, both parties waive all claims for incidental and/or consequential damages, even if the other party has been apprised of the likelihood of such damage. The Company and Consultant further waive all claims to exemplary and punitive damages.
12.4 Severability

If any provision of these Policies and Procedures is found to be invalid, or unenforceable for any reason, only the invalid provision shall be severed. The remaining terms and provisions hereof shall remain in full force and shall be construed as if such invalid or unenforceable provision never had comprised a part of these Policies and Procedures.

12.5 Waiver

Only an officer of BubbleBird can, in writing, affect a waiver of the Company Policies and Procedures. The waiver of any particular breach by a Consultant shall not affect BubbleBird’s rights with respect to any subsequent breach, nor shall it affect the rights or obligations of any other Consultant. The existence of any claim or cause of action of Consultant against BubbleBird shall not constitute a defense to the Company’s enforcement of any term or provision of these Policies and Procedures.

12.6 Successors and Claims

The agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.

13.0 GOVERNING LAW

These Policies and Procedures shall be governed by and construed in accordance with the laws of the State of Illinois and the exclusive jurisdiction of the courts in Illinois.

14.0 BUBBLEBIRD GLOSSARY OF TERMS

ACTIVE CONSULTANT: A Consultant who satisfies the minimum volume requirements, as set forth in the Compensation Plan, to ensure that they are eligible to receive bonuses and commissions.

AGREEMENT: The contract between the Company and each Consultant, which includes the following: the Consultant Application & Agreement, the BubbleBird Policies and Procedures, and the Company Compensation Plan, all in their current form and as amended by BubbleBird, Inc. in its sole discretion. These documents are collectively referred to as the “Agreement.”

CANCEL: The termination of a Consultant’s business. Cancellation may be either voluntary, involuntary, or through non-renewal.

COMPENSATION PLAN: The guidelines and referenced literature for describing how Consultants can generate commissions and bonuses.

CUSTOMER: A retail customer who purchases BubbleBird products and neither engages in building a business nor sells any product.

CONSULTANT: An individual who purchases product, generates retail sales and business building commissions.

LINE OF SPONSORSHIP (LOS): A report generated by BubbleBird that provides critical data relating to the identities of Consultants, sales information, and enrollment activity of each Consultant’s organization. This report contains confidential and trade secret information which is proprietary to BubbleBird.

ORGANIZATION: The Customers and Consultants placed below a particular Consultant.

OFFICIAL COMPANY MATERIAL: Literature, audio or video tapes, and other materials developed, printed, published, and distributed by BubbleBird to Consultants.

PLACEMENT: Your position inside your Sponsor’s organization.

RECRUIT: For purposes of BubbleBird’s Conflict of Interest Policy, the term “Recruit” means the actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another BubbleBird Customer or Consultant to enroll or participate in another multilevel marketing, network marketing, or direct sales opportunity.

RESALABLE CONDITION: Products shall be deemed in resalable condition if each of the following elements is met: (i) the products are unopened and unused; (ii) the products’ original packaging and labeling has not been altered or damaged; (iii) the products are in a condition such that it is a commercially reasonable practice within the trade to sell the merchandise at full price; and (iv) the products contain current BubbleBird labeling. Any merchandise that is clearly identified at the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be resalable.

SPONSOR: A Consultant who brings a retail customer (“Customer”) or Consultant into the Company, and is listed as the Sponsor on the Consultant Agreement. The act of enrolling others and training them to become Consultant is called “sponsoring.”

UPLINE: This term refers to the Consultant(s) above a particular Consultant in a sponsorship line up to the Company. It is the line of sponsors that links any particular Consultant to the Company.