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Distributor Handbook Business Reference Guide


Corporate Contact Information Corporate Contact Information:

SeneCare hours for SeneGence USA and Canada: Monday through Friday, 8:00 a.m. to 5:00 p.m. Pacific Standard Time (PST)

SeneGence International 19651 Alter Foothill Ranch, CA 92610 USA Tel: (949) 521-6161 Fax: (949) 521-6166 Info@SeneGence.com

SeneGence International Canada 8561 Commerce Court Burnaby, BC V5A 4N6 Tel: (949) 521-6161 Fax: (949) 521-6166 Canadainfo@SeneGence.com

SeneGence International Australia 1/1 Strathaird Rd. Bundall, QLD 4217 Phone: 1800LipSense Australiainfo@SeneGence.com

Your SeneGence Distributor ID #: Sponsor Information: ______________________________ Sponsor Name: _________________________________

ID #: _______________________________

Telephone #: ___________________________________

Cell #: ______________________________

Email address: _________________________________

Crown Princess Information: Crown Princess Name: ________________________________

ID #: _______________________________

Telephone #: _________________________________________

Cell #: ______________________________

Email address: _______________________________________

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TABLE OF CONTENTS

SECTION I: SeneGence International Mission Statement Evolution of SeneGence SeneGence Commitment SeneGence Distributorships The Nonprofit Make Sense Foundation

SECTION II: Getting Your Distributorship Started 10 Easy Start-Up Steps Optional Support Programs : New Distributor FAST START PROGRAM SeneDefinitions

6 6 6 6 7 7

9 9 9 11 12

SECTION III: Distributor Support & Training Media 17 SeneGence CDs and DVDs SeneGence Publications SeneGence Websites and Online Publications SeneGence Training Events and Meetings Distributor Contests and Recognition Programs ManaGence Program Distributor Insurance and Benefits Program 

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17 18 19 21 23 32 32


SECTION IV: Product Discounts, Ordering, Shipping, & Inventory 34 Distributor Product Discount Schedule Distributor Product Order Options Shipping Options Inventory: How Much Do I Need?

SECTION V: SeneGence Business Necessities The SeneGence Distributor Compensation Plan  Weekly Summary Sheet Frequently Asked Questions Regarding the SeneGence  Compensation Plan  SeneBlends  Distributor Contact List Hostess Appreciation Program Glamour Demo Hostess Pak 

SECTION VI: FORMS & PRINTED MATERIALS Terms of Application and Agreement  Make Sense Foundation Donation Form

34 34 37 37

39 39 44 47 47 48 49 50 50

52 52 59

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SECTION I: SeneGence International SeneGence is a multi-faceted, international corporation with its main purpose to make a positive contribution to women everywhere.

Mission Statement “To empower women around the world with a career that really works selling products that really work.” SeneGence is dedicated to the success of our Distributors by supporting you with the highest standards of ethics, products and technologies available, as well as promoting and carrying out the concept of SeneSynergy. SeneSynergy: To abundantly empower others to promote growth and success and, in doing so, re-energizing one’s own growth and success.

Evolution of SeneGence SeneGence is a privately owned, network marketing company that is in the business of developing and selling personal care products through an independent sales network. In April of 1999, SeneGence opened for business with only six lip colors, a gloss and a remover. LipSense Liquid Lip Color was its premier product. SeneGence now offers a complete long-lasting color cosmetic line, anti-aging skin care, body care, hair care and boutique items. The company will continue to utilize its unique ingredients and technologies for further development of new and exciting products that really work for our Distributors to sell. Expansion into the international market began with the opening of Canada in November, 2001, and Australia in February, 2003. Through the efforts of Founder, CEO and Chairwoman, Joni Rogers-Kante, and the organization of Independent Distributors, SeneGence has become a recognized brand name and international leader of long lasting anti-aging color cosmetics and skin care in the cosmetics and beauty industry.

SeneGence Commitment SeneGence is committed to making a positive difference in the lives of all who are associated with the company and its success. Technology SeneGence is committed to the ongoing development of products that really work utilizing our exclusive patented color technology, our proprietary anti-aging complexes, and other unique skin care formulations that help make skin more beautiful. We are revolutionizing women’s cosmetics. Integrity SeneGence is committed to conducting business at the highest standard of integrity and ethics, striving to always do the right thing to support our Distributors, employees, vendors, suppliers, partners and communities.

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Environment SeneGence is committed to finding and implementing ways in which to develop and distribute products, facilitate Distributor training and growth and to run our operations in a manner that leaves behind the smallest possible carbon footprint as possible. Opportunity SeneGence is committed to providing employees of SeneGence offices, as well as the diverse Distributors of SeneGence International, an equal and lucrative opportunity to enhance their quality of life. Growth SeneGence is committed to providing a positive personal and professional growth opportunity to those who work as employees in the offices of SeneGence International and for those who function as SeneGence Independent Distributors in the field. Fun SeneGence is committed to promoting positive experiences and relationships. Let’s all have fun sharing with others fantastic products that really work and enjoy life together!

SeneGence Distributorships If you became a SeneGence Distributor by completing the Online Distributor Application and Agreement you were instructed to read the SeneGence Distributor Policies and Procedures. In doing so, and by completing the SeneGence Application and Agreement and agreeing to the Terms and Conditions listed therein, you agreed to adhere to the SeneGence Distributor Policies and Procedures. This Distributor Handbook will review some of those policies and procedures. To acquire a hard copy of the SeneGence Distributor Policies and Procedures please go to the SeneGence Distributor Back Office>Business>Policies and Procedures. If you signed up as a SeneGence Distributor in any other way, you received a copy of the SeneGence Policies and Procedures in the mail. If for some reason you did not receive a copy in the mail, or would like to again, please contact the SeneCare Department at (949) 521-6161 and ask for a copy. It is important that all SeneGence Distributors follow the good business practices outlined in the Policies and Procedures to thrive and prosper in the marketplace. For your convenience, a copy of the SeneGence International Terms of Application and Agreement has been included in the back of this handbook. Please use it as a reference source.

The Nonprofit Make Sense Foundation The Make Sense Foundation was created by Joni Rogers-Kante as a part of the overall plan to make a meaningful contribution to the communities in which SeneGence Distributors thrive and grow their businesses. The purpose and goal of the nonprofit Make Sense Foundation is to generate funds that can be donated to help women and children in need across this nation. SeneGence International supports the administrative costs of The Make Sense Foundation with funds which are generated from several sources: A portion of our SeneDerm MakeSense Foundation and select LipSense shades sales are donated to The Make Sense Foundation; board members help orchestrate strategic local and national fundraising programs between certain charities with the aid of our SeneGence Distributors and our product line; items useful

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as business tools are designed and sold to SeneGence Distributors (with all or a portion of the profit going to the Foundation) and are available on the Online Supply Order Form under Make Sense Foundation; fundraisers are held throughout the year; contributions from Distributor commission checks and SeneGence employees are accepted monthly; and individual donations are accepted. You may learn more about The Make Sense Foundation by logging on to MakeSenseFoundation. org. Also, included in Section VI of this Handbook is a Make Sense Foundation Donation Form. Please complete the form for a one-time donation to The Make Sense Foundation or to make an ongoing monthly donation of any amount that will be subtracted from your Distributor commission check (to be effective when you begin to receive a commission check). Thank you for your support of The Make Sense Foundation. I look forward with excitement to new and more substantial means in which we together may continue to help support deserving women and children in need. 

– Joni Rogers-Kante, Chairwoman, MSF

Make Sense Foundation Products SeneGence’s line of products contains cosmetic items that contribute a portion from every sale directly to the Make Sense Foundation. On a permanent basis, the sale of every MakeSense Foundation make up shade and SenseCosmetics brush collection include contributions. Additionally, there are limited edition LipSense shades that raise money for the Foundation from its sales. You can find a note designating these shades in the online order form in your Back Office. Buying and selling these products not only helps you look good, but feel good too. Make Sense Foundation Publications The Make Sense Foundation Publications can be found on the SeneGence Distributor Online Supply Order Form. As these publications are designed with the help of the Distributor sales force, new Volumes or images within the publications are usually changed from one year to the next. The proceeds from these publications are donated to The Make Sense Foundation.

Other Fundraisers: • For every new Distributor that joins SeneGence, $5.00 from their sign-up fee is donated directly to the Foundation. • A monetary contribution is given for every SeneSential Training package purchased (amount dependent on specific package) • Seasonal fundraisers are offered where every Distributor is invited to participate, including at Seminar and over the holidays

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SECTION II: Getting Your Distributorship Started 10 Easy Start-Up Steps The first steps in your SeneGence business are designed to familiarize you with how to begin your SeneGence business and guide you through the initial set-up, booking, training and ordering process. Step 1 - Select Start-Up Options • Complete the SeneGence Distributor Application and Agreement. • Select start-up option Application Fee/New Distributor Kit (NDK) • With just a $55 investment you are in business and making a $5 donation to the Make Sense Foundation. The NDK includes the Million Dollar Lips book, Distributor Handbook, New Distributor Training USB Flash Drive, valuable manuals and training DVDs and CDs to help you begin your SeneGence business. Select one Distributor Kit option: Option I – LIPS Kit $95 (up to $290 value) The LIPS Kit is perfect for 1-on-1 demonstrations and includes the top selling LipSense colors, Glossy Gloss samples, SeneDerm Skincare samples, demonstration applicators, Beauty Books, Customer Receipts, the SeneGence Story DVD and more. Option II – Glamour Demo Kit (GDK) $295 (up to $1,145 value) GDK is designed especially for group Glamour Demonstrations, includes up to $1,145 (retail value) of SenseCosmetics products and supplies to use for samples and testers. Everything in the LIPS Kit and much, much more! Special Fast Start Plus 50% order Discount: As a new Distributor, you will receive a 50% discount from suggested retail price on every order of 300PV or more (see suggested order in your back office) you place during your first 90 days in business.

Optional Support Programs : Select SeneSential Training Package – SeneGence offers Distributor SeneSential training packages that include free weekly trainings, coaching calls, CDs, DVDs, printed training publications, and quarterly and annual company sponsored training events. The training packages are available to all Distributors at discounted prices ranging from no investment for weekly training to a more sophisticated and regimented training program designed for the woman who desires to build a serious and sustainable direct sales business. SeneSential Training Packages are applicable for a period of one year after purchase date and may be updated. SeneSential Ruby, Sapphire, Emerald,Pearl, and Diamond Training Packages are available to review online in the Distributor Back Office under Training.

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Product Replacement Program – Choose whether or not to enroll in the SeneGence Product Replacement Program. Under the Distributor Product Replacement Program, SeneGence will replace product that is lost or destroyed, except the first $250.00 (retail value) and up to a maximum of $5,000.00 (retail value), per annual period. This program does not cover product lost while in transit or shipment, product purchased prior to initial enrollment in the Program, or product purchased more than one year prior to the covered event / loss. Participants in the program agree to the annual renewal of, and charge for the $150.00 fee. See details online in your Distributor Back Office>Business>Product Replacement Program. Step 2 – Learn: Listen to the SeneGence Success CD found in your NDK, Review all the materials included in your NDK, along with the Distributor Handbook, Beauty Book, and DVDs. The Distributor Demo Guide and Glamour Demo DVD are included in the GDK. All Reference Guides can also be found online in the SeneGence Distributor Back Office. Please ensure SeneGence has your correct email address as we communicate training and company announcements to you through weekly email. Step 3 – Set Goals: Review the 30, 60 and 90 Day “Fast Start Program” and set your goals. By achieving specific PV (sales) goals during your first 90 days, you’ll have the opportunity to receive over $1,200 in free products to be used personally, displayed at your demos or sold for extra profits. Step 4 – Explore your “Back Office” at Senegence.com: The area of the SeneGence website exclusively for Distributors is commonly referred to as the “Back Office”. You will want to familiarize yourself with all the resources available to you here. Primarily, this is where you will place orders and track your sales and sponsoring progress. But you will also find a multitude of training support materials, business forms, marketing collateral, product information and so much more. Content is updated regularly. Access it from senegence.com and click on Distributor Log In. You will need your Distributor ID and password to enter. Step 5 – Determine Inventory and Delivery Options: Your demonstration sales will be much greater with on-the-spot delivery. We recommend keeping a variety of inventory items in stock at all times for immediate delivery. Ask your Sponsor and Upline Field Leader for recommendations on what to order for your Demos. Suggested inventory lists can also be found online in the SeneGence Distributor Back Office > Order > Initial Sample Orders. If on-the-spot delivery of inventory is not an option you may opt to use Demo Drop Ship or CDO. See Section IV of this Handbook for more information about these options. Step 6 – Order Business Cards & Tools: Order professional business tools and business supplies necessary to operate your SeneGence business. For printed material selection information, go to the SeneGence Distributor Back Office > Order > Logo Printed Materials. To order additional demonstration tools go to the Supplies section listed on the online Product Order form found in the SeneGence Distributor Back Office > Order Supplies and Samples section. You can also design and print your own business cards with branded templates. Go to Recources > Marketing Materials > Printing Templates. Step 7 – Get Online: We highly recommend every Distributor set-up to be in business 24/7. Activate your personalized e-commerce tool and create a professional business presence with a SeneSite website. For more information see Section III; SeneGence Websites and Online Publications or go online to the SeneGence Distributor Back Office > SeneSite> SeneSite Application. Also consider setting up a free Facebook Business page for your new business. For more social media informtion see the New Distributor Training Manual Volume 4. Step 8 – Book Launch Demo: Your Upline Sponsor will be happy to book your launch demonstration at your convenience. You should do this within your first two weeks as a new SeneGence Distributor. It is the best way to learn. Your Upline Sponsor will be happy to conduct the demo while you assist your friends with their LipSense applications. She will also help

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you book additional demos and sponsor your first downline member(s). The New Distributor receives the PV from the Demo, and the profit is split between the New Distributor and Upline Sponsor who is training at the Launch Demo. Step 9 – Make the Call/Get online: Join the Happy Hour Conference Call held every Tuesday evening at 6:00 pm (PST), the Virtual Business Training every other Thursday at 6:00pm, and the Glamour Clinic every other Thursday at 6:00pm for training, sharing, sales, marketing and beauty tips. Topics are always different so don’t miss out! The phone number and password are listed in the weekly eblast, Sentiments. Step 10 – Show Up for Class: Attend SeneU held at the corporate office the first Saturday of almost every month of the year for an exciting and informative new Distributor Training. This is an opportunity to receive advanced training regarding our unique products. You’ll also learn the business building basics that will get you started right. Go online to view upcoming dates and to reserve a seat by logging in to your SeneGence Distributor Back Office >Events>SeneU. You can also complete SeneU online by going to www.seneuonline.com. Have Fun! Set your goals for success and have fun sharing amazing products that really work! Make an appointment with your Sponsor, Upline Field Leader or SeneGence staff member to plan your successful career.

New Distributor FAST START PROGRAM SeneGence has designed for new Distributors the FAST START PROGRAM. Upon reaching various levels of sales volume, FAST START will add extra profits in your pockets and provide a full line of SeneDerm Anti-Aging SkinCare products for display or sale. Simply achieve the required PV in each of the 30 day challenge periods (meeting specific challenge period guidelines), and you will receive a total of $1,200 in SenseCosmetics and SeneDerm Skin Care products and rewards for FREE – all yours for consistent performance! Special Fast Start, Plus A Quick Step: Fast Start: First 30 Days* Place orders of a cumulative 1000PV (or more) for saleable products within your first 30 days* and receive: Over $350 (suggested retail value) products for FREE! First 60 Days* (or sooner) Place product orders of at least a cumulative 2000PV within your first 60 days* and receive … Over $400 (suggested retail value) products for FREE to add to your GDK. First 90 Days* (or sooner) Place product orders of at least a cumulative 3000PV within your first 90 days* and receive … Over $450 (suggested retail value) products for FREE! + Plus Receive a 50% discount on all orders of 300PV ($600 USD Retail) or more placed during your first 90 days in business.

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A Quick Step Earn 50 $eneBucks for each new Qualified* Distributor you Sponsor during your first 90 days in business. * Qualified New Distributor = must place a cumulative 300 PV order within 30 days of their sign up date. The sponsoring Distributor must also place a 300 PV order during the same 30 days.

Fast Start Program Details: In the event you miss the 30 Day challenge, you can still qualify for the 60 Day and 90 Day challenges. If you were to miss both 30 Day and 60 Day challenges, you could still qualify for the 90 Day challenge. The challenge awards listed will be sent to you with the qualifying order upon the completion of each challenge timeline. Product lists for each challenge can be found online in the SeneGence Distributor Back Office> Business>Fast Start Program. Note: Substitutions may occur. (*Your first 30, 60 and 90 days begin with your application date)

SeneDefinitions SeneGence is a unique company with a unique product line and culture. We’ve invented a few “SeneWords” to help describe and identify products, programs, tools, aids, and systems that have been designed specifically for SeneGence. Some more commonly known words have a very specific meaning within our culture. Here is a listing of a few of the words and terms and their meanings: Back Office – Refers to the Distributor area of SeneGence.com Beauty Book – A product brochure designed for marketing, sales and consumer education of the SeneGence product line. Career Distributor – A Distributor who works exclusively as a full-time (40 hours per week) SeneGence Distributor. Part time Distributor – A part-time (10 hours or less per week) Distributor who maintains a smaller customer base. CDO – Customer Direct Order – 24-7 e-commerce program offered to all Distributors at no up front cost. Product is shipped from SeneGence Corporate; retail profit commissions are paid directly to the Distributor. CV – Abbreviation for Commission Value; CV is equal to PV (Point Value) generated by a Distributor’s downline. CV is used to calculate the amount of a Distributor’s Downline and Group Sales Volume Bonus Commissions. CV is the same regardless of which country product is sold. CV is not accrued for (GSV) orders of non-commissionable items such as testers, supplies, starter kits, promotional or free product. CV is used to calculate monthly commission earnings on sale of product made by a Distributor’s Downline. Dashboard – Realtime business information including your current PV, Downline qualifications and much more. Click through your Back Office to access. Demo – Refers to a SeneGence home or office product demonstration.

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DeLIPscious – The name of a cookbook that includes LipSense recipes published by The Make Sense Foundation. Distributor – Refers to an independent contractor who sells SeneGence products and is thus called an Independent Distributor. Dominion – The Downline of a Crown Princess for which the Crown Princess is responsible to manage and train. Dominion sales volumes and growth activities are measured monthly for Crown Princess recognition purposes. Dominion Inner Circle Courts – Upline Crown Princess’ Court used to identify top Distributors within the Dominion. Dominion Courts are based on 50% Inner Circle calculation Seminar Inner Circle Courts. Downline – A term used to describe and measure the Distributor members in, and the structure of a Downline organization. DV – Abbreviation for Downline volume. DV points are entered for personally sponsoring new Distributors into your Downline. Fast Start, + Plus A Quick Step – A new Distributor program that enables a new Distributor to earn free product, 50% discount & SeneBucks. Field Leader – A ManaGence Distributor who is also a Countess or above. Glamour Clinic – Online training held twice a month covering many facets of SenseCosmetics application, beauty tips and tricks, and more. GDK – Abbreviation for Glamour Demo Kit. GSV – Abbreviation for Group Sales Volume. GSV is the accumulated orders of a Downline within a given period of time stated in terms of suggested retail value in US dollars. GSV is used to calculate performance and achievement in GSV is generally equal to CV x 2. Happy Hour – A weekly Distributor training conference call. Inner Circle Court – An annual Distributor sales, sponsoring, and Downline productivity recognition, achievement and award program Leaders – Refers to the Annual Leaders’ Conference. Leaders’ Year – October 1 through the following September 30. Level – Refers to a line position within a Downline. Level One, Level Two, et seq. Lines – Generally refers to a Downline and levels of a Downline. First Line, Second Line, et seq. LIPS Kit – One of two new Distributor sales aid kits which contains the top-selling LipSense shades. LIPS Trip – An annual trip earned by Field Leader Royals and above for sponsoring efforts within the Leaders’ Year.

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LipSense – The premier product of SeneGence. A remarkable, patented, long-lasting color for lips. Logo Charm Holder – A broach designed for SeneGence Distributors to hold charms indicative of their recognition and achievements. Maiden (s) and Above – Refers to the initial level of achievement into the Royal Court. Make Sense Foundation – (Not for profit foundation) the cause marketing, sister, nonprofit corporation of SeneGence International. ManaGence – Distributor Field Leader Management Program. Month – Measured from 12:00:00 am Pacific Time of the first day through 11:59:59 pm Pacific Time of the last day of a calendar month. Newsletter Recognition – Top Distributor’s sales and sponsoring achievements are acknowledged, recognized and printed in the company monthly newsletter. NDK – Abbreviation for New Distributor Kit. On Track Field Leader – A ManaGence Distributor who is a Maiden or above, but not yet a Countess. Petite Picasso – Holiday cards drawn by children made for and sold by The Make Sense Foundation. PIT Stop – Abbreviation for Princess In Training. Management training event for Distributors. Held twice a year in January & July. PV – Abbreviation for Point Value. Each SeneGence product assigned a suggested retail value is also assigned a PV. PV is the same regardless of which country product is sold. Point Value is used to determine a Distributor’s qualification for Downline commission and group sales bonuses. PV is not accrued for orders of non-commissionable items such as testers, supplies, starter kits, promotional or free product. PV is also used to calculate CV (commission value) on commissioned products sold by a Distributor’s Downline. QV – Abbreviation for Qualifying Value: The combined qualifying Point Value used for the purpose of qualification for, and maintenance of, the SeneCar Program. Realm – Refers to a Royal and above and their Downline Distributors within a Dominion. Road to Royalty – Refers to Royals and above who are making their way up through the ranking achievement levels. Rolling Three-Month Period - The three calendar months immediately preceding the current month (not necessarily a calendar quarter). Royal and Above – Refers to Royals and all higher ranking Royalty. Royal Court – Refers to the entire membership of All Royalty, from Royal through Empress. RMA – Abbreviation for Return Merchandise Authorization.

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Seminar – An annual conference held for Distributor and Field Leader Distributors where training, education, recognition, awards, and fun occurs. Seminar Year – The SeneGence Distributor Recognition Year beginning April 1 and ending March 31 of the following year. SeneBlends – n. Refers to a Glamour Training Program or the SeneBlends Beauty Guide book. adj. Describes the blendability of SenseCosmetics; v. the blendable characteristics of SenseCosmetics SeneBucks – A credit measurement (generally at retail value) awarded to Distributors who qualify for an array of incentives; to be used for product purchases (not redeemable for cash). SeneCar – A car lease reimbursement program offered to qualifying Distributors based upon first-line and 2nd line growth and productivity. Choose any car in SeneGence blue. SeneCare – A collective group of SeneGence employees within the customer service department. SeneCash – The SeneCash Program allows Distributors to use monthly commission earnings and bimonthly CDO (Customer Direct Order) sales income earnings to be used as a ‘pass through’ for the purposes of ordering SeneGence products and supplies and to use as expense ‘monies’ for various other business expenditures in a more efficient manner. SeneCash is redeemable for cash, at the option of the Distributor. SeneDefinitions – Definitions of unique SeneGence words. SeneDerm – The name of SeneGence SkinCare product lines. SeneGence – A word composed of several: Senescence (the process of aging) + Intelligence (the capacity to acquire and apply knowledge) Synergy (The working together of two things to produce an effect greater than the sum of their individual effects) = SeneGence (the intelligence of long-lasting color and anti-aging skin care) SeneGift – SeneGence products offered to SeneGence Distributors at a reduced price for a one time gift for Demo Hostesses. SenePlans – A body of trainings, meeting agendas and instructions written by SeneGence made available for Distributor access and archived in the SeneGence Distributor Back Office. SenePlans includes Distributor activities, business tips, marketing plans, business and sales aids. SeneSales – n. A Distributor who achieves the SeneSales qualification. adj. A quarterly sales Distributor achievement program. Quarterly achievement will accomplish membership into the Annual Seminar Inner Circle Personal Sales Court. SeneScenes – n. SeneGence monthly newsletter and annual magazine. v. A SeneGence ‘happening’. SeneSynergy (Ms.) – n. A SeneGence Distributor who was nominated and voted into the Annual Ms. SeneSynergy Court by her peers. v. To give selflessly unto others, and in doing so, empower yourself. Sentiments – n. A weekly E-blast sent to all Distributors that includes company, product and event updates and announcements.

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SeneGence Success CD – A new Distributor “get started and how to” CD. SeneService – n. A monthly E-blast sent to online SeneGence Distributors and Customers. v. SeneGence Customer service. SeneSite – n. Custom Distributor website for online e-commerce and business tools. SeneSponsor – n. A Distributor who achieves the SeneSponsor qualification. adj. A quarterly sponsoring Distributor achievement program. Quarterly achievement will accomplish membership into the Annual Seminar Inner Circle Sponsors Court. SeneStar – n. The name of the Seminar Year Distributor achievement award based upon a balance of personal sales and GSV within the Seminar Year. SeneStars are awarded with an annual trip to a location in the USA. v. A Top Ranking SeneGence Distributor. SeneSupport – Distributor achievement program based upon monthly sponsoring. SeneTip (s) – n. A weekly tip included in Sentiments referring to product knowledge, beauty tips, trends and more. SeneU – n. Distributor training event held the first Saturday of most months at the corporate headquarters in Foothill Ranch, California. SeneWords – Exclusive SeneGence terms used for titles of events, publications, products and more. SenseCosmetics – The category name of the creamy and liquid, long-lasting, anti-aging color cosmetics of SeneGence. SGII – Abbreviation for SeneGence International Incorporated. Skype – The name of a 3rd party video and audio service on the web that SeneGence periodically uses for meetings and events. Sponsor – n. Refers to the Upline or person who recruited another into Distributorship. v. The act of recruiting an individual. State/Provence Founder – The person identified within a state or provence who first began to market SeneGence products and build a Downline of Distributors. State/Provence Leader – Individuals identified and named as leading Downline Distributors in growth and sales within any state or provence over the course of a Leaders’ Year. Upline – Distributors who are linked to you that sponsored into the company prior to you. Upline Sponsor – Refers to the individual who personally sponsored a Distributor. Virtual Business Training (VBT) – Online training held twice a month covering many facets of business practices.

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SECTION III: Distributor Support & Training Media SeneGence CDs and DVDs SeneGence makes available to Distributors recordings regarding various business topics and trainings used for convenient listening and learning. These tools are written in a way Distributors may use them to help sponsor new Distributors into their Downline and to gain and retain new customers. They are informative and educational marketing and training tools all in one.

SeneGence Product Knowledge Audio Library You’ll receive in-depth product information as told by Joni Rogers-Kante. A must-listento training for every Distributor. Available for listening and download in your Back Office > Resources > Training > Product Knowledge. SeneGence Success CD Listen to Founder, Joni Rogers-Kante as she guides you through this four-part CD. You’ll hear an Introduction to SeneGence, how to get your business started, training for Sponsoring and an overview of the Distributor Compensation Plan. SeneGence Career Opportunity & Distributor Compensation DVD This DVD gives an exciting overview of SeneGence, the product lines, the business opportunity and Distributor Compensation Plan. It not only provides information beneficial for the new Distributor, but also should be viewed by potential new Distributors and customers. Send this DVD to as many prospects as possible. The purchasing and mailing of this lightweight sponsoring tool is easy and inexpensive to help you in your sponsoring, booking and selling efforts. The SeneGence Story DVD A five part DVD with a wealth of information for new Distributors, potential Distributors and customers. Use part One (The History of SeneGence) to open your demos. Customers will be fascinated to hear the history of SeneGence and the steps taken to develop our amazing product line … including actual scenes taken while in Vanuatu. It also explains what SenseCosmetics and SeneDerm Anti-Aging SkinCare SeneCeuticals are and how they work, along with information on SeneBlends - creating customized looks and glamour application techniques. Part Five, SeneBlends, can be used at your own customer appreciation glamour clinics as an interactive step-by-step application training guide visual. SeneGence Glamour Demo DVD This valuable training tool guides a Distributor through an actual Glamour demonstration and provides fundamental information on the Demo set-up, product demonstration and application, booking, coaching, selling, and closing techniques. There is also product demonstration streaming videos built into the Products section of www.SeneGence.com.

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SeneGence Company History DVD An inpsiring look at how SeneGence got started. Hear from Joni Rogers-Kante as well as Distributors on how SeneGence has changed lives. This DVD provides a great first impression to new Distributors and gives them an idea of what SeneGence is about.

SeneGence Publications SeneGence writes and distributes many types of publications to keep Distributors informed, to aid in marketing their SeneGence businesses and products, to motivate and inspire and to train. Most forms of the publications are archived in the SeneGence Distributor Back Office for easy reference and may be copied for your convenience. SeneGence Beauty Book The SeneGence Beauty Book was designed to be a customer product catalog. Distributors can introduce the product line to potential customers, and lead them through a Glamour Demonstration. It includes information about the company, skincare and color cosmetics descriptions, product pricing, a profile and customer service tracking tool, and Distributor information. Beauty Book Distributor Guide This guide leads you through the Beauty Book page by page and gives you talking points to guide you through a Demo. Distributor Glamour Demo Guide This guide includes everything you need to know about holding a successful demo, from set-up to finish. SeneBlends Beauty Guide This professional, full color guide to glamour will help you and your Customers achieve beautiful looks. You will learn useful tips from color matching, to identifying your skin type in an easy-touse format. Perfect for displaying and using at Glamour Demos and Downline trainings. SeneGence Distributor Handbook (manual you are currently reading) The Distributor Handbook is a business reference guide included in the NDK. It outlines the culture of SeneGence and describes Distributor programs, publications, media, customer and Distributor systems, awards, events and business tools. SeneGence New Distributor Training Manual, Volumes 1-4 This library of guides is a treasury of information covering topics such as Wowing, Booking, Demoing, Directing, Sponsoring, Customer Service, Up-selling and marketing with Social Media – every area necessary to build a sustainable, growing business. SeneGence Event Guides Distributors can build a direct selling library of information by collecting training guides from major SeneGence Events including SeneU, PIT Stop, Leaders and Seminar.

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SeneGence Policies and Procedures Guide The Policies and Procedures Guide answers Distributor questions as they apply to following fair and good business practices in the marketplace. It covers topics including legal issues and provides guidelines for SeneGence Independent Distributors. SeneGence Product Knowledge Guide Complete with ingredients, use this resource to learn about the entire SeneDerm and SenseCosmetics product line. This guide explains our product technologies in detail, the science behind each product, how they work, uses, tips and techniques. Acclaim Magazine A company annual magazine. Each magazine is unique and provides important information regarding the company, the products, and marketing programs for use as a great promotional and sponsoring business tool. SeneScenes, the Newsletter Monthly SeneGence newsletter which includes product update information, company information, training tips, recognition, and event listings. Log on to the SeneGence Back Office>Resources>Publications & Emails>SeneScenes Monthly Newsletter to view previous editions. Marketing and Product Fliers, Brochures and Tri-Folds Available to all active Distributors are various printed marketing materials that are essential to your business, selling products, and sponsoring downlines. Most of these items are available to you at no charge for downloading and copying and can be found in your Distributor Back Office>Resources>Marketing Materials. Public Relations and Advertising Guidelines SeneGence has available press releases and public relations materials to enhance your individual marketing efforts. This allows Distributors to advertise only if the ad contains company approved artwork and images, and the copy has been approved by the Marketing Department. For information regarding advertising and public relations programs, please contact the Marketing Department of SeneGence at multimedia@senegence.com.

SeneGence Websites and Online Publications SeneGence offers Distributors an easy way to navigate web presence at www.senegence.com and SeneSites, a 24 hour e-commerce tool so that you are in business 24/7. Written and published as training and marketing tools, the information about the company and products is virtually limitless.

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SeneGence.com Distributor Back Office & Resources The SeneGence website is a valuable conduit of information for the Distributor, your customers, and prospective recruits. Our website provides in-depth information regarding the products and opportunities offered by SeneGence: • • •

The Company The Products The Career

The “Back Office” is an area of the website available exclusively to Distributors. Within the pages, Distributors will be able to find product information, marketing materials, forms, manuals and reports, and watch recorded training webinars- all to help manage a successful SeneGence career. SeneGence has posted a variety of training topics and previous trainings. Log on to the SeneGence Distributor’s Back Office>Resources>Training>Webinars to watch what’s new! You will also be privy to the latest company and product information, marketing resources, dowloadable artwork, and information on company events and trainings. You will also be able to track your downline, your progress in any company contests, and receive up-to-date information regarding ordering activity and sponsoring efforts that have occurred within your Downline organization. To access the Distributor Back Office, you must login (Distributor Identification number) and input your password chosen by you, which needs to be between 6 and 9 characters. SeneSite Program This program allows Distributors to have a strong online presence with a personally customized web page, which becomes the home page and portal to the company website www.SeneGence. com. The following are the many benefits of the SeneSite program: • Convenience of “one-click” shopping for your customers • Exposure to the latest products and company information to your customers • Referral and leads programs that are directed to SeneSite Distributors, by zip code, on a rotating basis • SeneSite subscribers receive access to additional tools in their Distributor area including SeneMail allows for creatively formatted e-mails and functions necessary to manage your SeneSite Please note that Distributors may not display or make reference to any company trademarked name or product online, unless it is on a company approved SeneSite. Failure to comply with this policy can result in the termination of an individual’s Distributorship. If you have an existing website, you may place a link into the SeneSite belonging to you. To enroll in the SeneSite program, you may go online to www.SeneGence.com. Log in to the SeneGence Distributor Back Office>SeneSite and click on the SeneSite application link. SeneService E-Blast Customer Support Program Customer Service made easy – we offer a monthly email correspondence sent from SeneGence on your behalf, to your customers. Each e-blast consists of product offerings, company specials, booking and sponsoring offers, and interesting tips and information on skin care and glamour. Individuals who order products from you through the Customer Direct Order, SeneSite, Demo Drop Ship, or whose names and e-mail addresses are entered manually by you will receive the SeneService E-Blast once each month keeping your customers in contact with you! You may enter your customers into the program by going to the SeneGence Distributor Back Office> Business> Customers > SeneService Emails.

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Sentiments E-Blast The weekly Monday E-blast is sent to all active Distributors and includes vital company announcements, event and training information, monthly product and promotional launches, non-profit Make Sense Foundation news, and certain Distributor recognition.

SeneGence Training Events and Meetings SeneGence sponsors many Distributor training and sponsoring events throughout the year. Most Distributor trainings are conducted the same day and time every week, each month, and time of year so that it is easy for a Distributor to book the SeneGence ongoing training program into their calendar from one year to the next. Please look for specific dates of the following company sponsored events and schedule them into your annual calendar. Dates, locations and specifics can be found by logging onto the SeneGence Distributor Back Office>Events> ‘Name Of Event’. • • • •

Annual Seminar – April Annual Leaders Conference – October PIT Stop – January & July SeneU – 1st Saturday of Month

Happy Hour Webinars Every Tuesday at 6:00 pm (PST) join us for a live “Happy Hour” web meeting. Spend some time with one of our field leader Distributors or an Executive Management team members discussing important and informative topics to help build your business. Encourage your downline to participate. Make this one of your scheduled weekly training events. Information can be found online: SeneGence Back Office>Events>Event Calendar or listed in the weekly Sentiments E-blast. Virtual Business Training (VBT) Webinars VBT is held the 2nd and 4th Thursday at 6:00p.m. (PST) of each month as an online training covering the many business practices Direct Sellers need to learn to ensure success. Specific SeneGence programs are discussed that have been designed to facilitate a fun experience and continuous progress in building a successful SeneGence business. Glamour Clinic Webinars Glamour Clinics are hosted by the annual SeneGence Lead Makeup Artist and include glamour application and product knowledge held the first and third Thursday of each month at 6:00p.m. (PST). Log on from home to join virtually and watch the training live on your computer. Training information can be found online: SeneGence Back Office>Events>Event Calendar or listed in the weekly SeneSentiments E-blast.

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Area Training Events The company, along with some of our Field Leaders, provides regional area trainings and events to our independent sales force. Please check the newsletter and the events calendar in your SeneGence Distributor Back Office>Events>Event Calendar for up-to-date information regarding these trainings and specific event contact information. SeneU Held the first Saturday of most months, SeneU is designed for those who want to get their business started on the right foot. Come learn from SeneGence Corporate staff about all the basics you need to know for success. SeneU is open to all Distributors. You must register to attend. To view available dates and to register for the next SeneU training log on to the SeneGence Distributor Back Office>Events>SeneU.

P.I.T. Stop: Princess in Training All Maidens and above are qualified to attend this advanced training that specializes in managing a successful SeneGence business while training and supporting a downline. This semi-annual program which is held every January and July is the first management level training to attend as you plan to grow and develop your business. Here, you will be trained by Joni Rogers-Kante and SeneGence Crown Princesses and other successful SeneGence Field Leader Distributors, as well as expert guest speakers. Log on to the SeneGence Distributor Back Office>Events>PIT Stop for details and to learn location and dates for another informative and educational session and to register for the event. Crown Princess Retreat Crown Princess Retreat is an invitation only event that consists of only a handful of the most influential SeneGence Distributors who gather together with Joni at her home to strategize and discuss their future goals and team management.

SeneGence Annual Seminar Seminar is held each April. We gather to celebrate collective and individual Distributor successes of the year. Seminar is the largest, most extravagant corporate event of the year and is filled with an array of Distributor training classes conducted by top Leaders in the Direct Selling business and top SeneGence Field Leaders. Over the course of the several-day event, you have the opportunity to take part in the launching of new products, sales and marketing tools and Distributor Support Programs. Seminar is an exciting and motivational experience with valuable information provided on building and managing your business, open to all Distributors. Make Sense Foundation Fundraiser and Awards Banquet Also held during Seminar is the Annual Awards Banquet, sponsored by our non-profit organization, the Make Sense Foundation. The Awards Banquet recognizes the many hardworking Distributors who excel in their sales and sponsoring efforts over the course of the year leading up to this thrilling event. All registered attendees of Seminar are invited to purchase tickets for this fundraising event, with proceeds benefiting women and children in crisis. This night of entertainment and awards honors the successes of Distributors on many levels, including an elite group who have qualified

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for the Inner Circle Awards Courts – the highest level of achievement in SeneGence. This is an event you do not want to miss filled with laughter, tears and always a few unexpected surprises. There is always some type of fundraiser activity held throughout the evening. Your participation supports the Make Sense Foundation as well as the valued accomplishments of your fellow Distributors. Seminar Field Leader Crown Princess Dominion Receptions At Seminar, every Distributor receives an invitation to a reception, held by their upline Crown Princess. This event gives Crown Princesses an opportunity to honor the year’s achievements of their Downline. Dominion Inner Circle Court Members are honored by their Crown princess for their achievements in Sponsoring, Personal sales, and Group Sales Volumes. Usually held the first evening of Seminar, this event is the Crown Princess’s opportunity to spend personal quality time with their Downline, most of whom travel to Seminar from all over the country. Meeting their Crown Princess is an important aspect for a new Distributor attending Seminar for the first time, as well as offering a more private setting in which to mingle with others in their Downline, meet new friends, share ideas and create successful business strategies together. You will be notified by your upline Crown princess of time and location. Field Leader Crown Princess Downline Goal-Setting Meetings Downline goal-setting meetings are held by the Field Leader Crown Princesses and Crown Princess Emeritis immediately following the closing ceremonies of Seminar. The purpose of this meeting is for your Crown Princess to review Seminar highlights, answer questions, set goals and strategize the following six months. This crucial time period serves all levels of Distributors and helps leaders create training schedules in an organized manner so as not to duplicate or overlap efforts. An additional benefit is that Distributors’ individual needs are met in identifying which Field Leader is closest and most available to help. You will be notified by your upline Crown princess of time and location. Log on to the Distributor Back Office>Events>Seminar for details and to learn location and dates for this one-of-a-kind amazing event and to register to attend. Annual Leaders Conference Leaders’ Conference is held in October in select locations around the United States. This is for SeneGence Distributors who have achieved the level of Royal and above within the Royal Court. This conference is an advanced management training staffed with some of the most successful Direct Sellers within the industry and a rare opportunity to learn from the very best. The location and key note speaker of the current year’s event will be announced each year at Seminar. There is always some type of fundraiser activity held for the Make Sense Foundation during the event. Log on to the SeneGence Distributor Back Office>Events>Leaders Conference to learn where and when this dynamic training will be held this year and to register to attend.

Distributor Contests and Recognition Programs SeneGence Distributor Contests and Recognition Programs are all designed to help Distributors grow a successful SeneGence business. The achievement of the contests and recognition levels will increase sales income and commission income for every Distributor who strives to meet the exciting challenges. Contests and Recognition programs help to make the journey to success more fun and allow for friendly competition amongst what becomes a team of friendly peers. As well, at the base of every contest and level, Distributors have the ability to achieve goals, be it a car or an exotic trip, based upon the Distributors’ individual efforts.

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SeneSharing

This is a one time recognition program designed for new Distributors only. If within a Distributors’ first thirty days they place a 300 PV or more order and sponsor a new Distributor who also places a 300 PV or more order within their first thirty days as a Distributor, the sponsoring Distributor will receive a gold with blue orchid lapel Lip Pin. SeneSharing Distributors are recognized at all SeneGence Events. SeneBucks

SeneBucks is an on going program offered to Distributors as a bonus when you sponsor a new Downline Distributor who places 300PV or more cumulative orders within the first 30 days after sign up –and you, their sponsor, place 300PV or more cumulative orders in the same time period. The sponsor will then receive 25 SeneBucks that can be used for purchase of $25.00 in retail value of SeneGence re-saleable /commissioned products. SeneBucks are valid through the end of the quarter following the one in which they were earned. Your SeneBucks amount will be visible on your online product order until they are redeemed (by no later than the end of the quarter following the one in which they were earned). SeneBucks are not redeemable for cash. Monthly and Annual Ms. SeneSynergy

Ms. SeneSynergy is a Distributor who abundantly empowers others to promote success and growth, and in doing so, re-energizes their own. Every month, SeneGence Distributors nominate a peer who exemplifies these outstanding, generous traits. During Seminar each Ms. SeneSynergy is honored on stage and given a sash, plaque and sterling silver lip lapel pin. From the twelve monthly Ms. SeneSynergy, one is voted upon who had gone above and beyond the call of generosity. She receives recognition at Seminar, in the semi-annual edition of SeneScenes Magazine, and a sterling silver lip lapel pin with a solitaire topaz stone and a unique persona trophy. Logo Charm Holder

SeneGence has designed an exciting Distributor recognition program by using the SeneGence Logo Charm Holder, the main facets of which reflect the company mission statement. As a Distributor moves up the ranks, attends trainings, earns awards, and is recognized for various

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contest achievements, charms will be added to their Charm Holder that reflect their journey and accomplishments. Used universally, any SeneGence Distributor may ‘read’ the accomplishments of another by viewing the charms hanging on the Logo Charm Holder. SeneSales

The SeneSales program tracks quarterly sales of every Distributor with four possible levels of sales achievement (Ruby, Sapphire, Emerald and Diamond) and rewards PV production each quarter within the Seminar Year. To earn Newsletter recognition and charms for personal sales, achieve the following PV qualifications in any one Seminar year quarter: Ruby SeneSales Sapphire SeneSales Emerald SeneSales Diamond SeneSales

6,000 - 8999PV (Receive Ruby Charm) 9,000 - 11,999PV (Receive Sapphire Charm) 12,000PV or higher (Receive Emerald Charm) 12,000PV or higher all 4 quarters of a Seminar Year

SeneSponsoring

SeneSponsoring is the sister program to SeneSales that tracks first-level Downline sponsoring efforts. Distributors will be recognized by achieving the following quarterly sponsoring goals: Ruby SeneSponsor: Sapphire SeneSponsor: Emerald SeneSponsor: Diamond SeneSponsor: quarter

5 New Distributors in a quarter with a cumulative 6-12 New Distributors in a quarter with a cumulative 13 New Distributors in a quarter with a cumulative 13 New Distributors all 4 quarters with a cumulative

300PV each 300PV each 300PV each 300PV each

Combine SeneSales with the SeneSponsoring program and Distributors will be on track to achieve the SeneStar Trip and the LIPS Trip. Annual Diamond SeneSales & Diamond SeneSponsoring Annual Diamond SeneSales & Diamond SeneSponsoring Each year at Seminar Distributors earning Emerald SeneSales (12,000PV+) all 4 quarters of Seminar Year are awarded Diamond level SeneSales and recognition at Seminar. The ‘diamond like’ charm is displayed on the Distributor’s logo charm holder to acknowledge performance of excellence. As well, the Distributors earning Emerald SeneSponsoring (13 new Distributors in a quarter with cumulative 25,000DV) all 4 quarters of Seminar Year are awarded Diamond level SeneSponsoring and will receive a ‘Diamond like’ Persona charm to be displayed on their Logo Charm Holder and Seminar recognition.

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SeneSupport One Distributor with the greatest number of personally sponsored 1st line Distributors (qualified with 300PV) each month will receive $100 $eneBucks from SeneGence. The monthly recipients of the SeneSupport Award will be listed in the SeneScenes newsletter and will receive their $eneBucks credited to their Distributor account the week following the 1st of the next month. Monthly and Quarterly Sales and Sponsoring Contests From time to time SeneGence sponsors monthly or quarterly Distributor, Hostess or Customer Contests offering fun and exciting opportunities to win a variety of special prizes. Each contest is different – and sometimes more popular contests are repeated. Contests are designed to motivate and increase sales and sponsoring activity and Distributor income. Watch for the next SeneContests and go for the goal! SeneCar

Both New and Seasoned SeneGence Distributors may earn their very own ‘trophy on wheels’ and drive away a brand new car of their choice in the factory blue color. To become eligible for the SeneCar Program, you must meet certain requirements in both Personal Sales and Downline Sales. The requirements are as follows: Personal Sales Eligibility Requirement: - Place monthly cumulative orders of 750 PV or more for the three consecutive months in which you are qualifying. Downline Sales Eligibility Requirements: - Tier One Eligibility – Accumulate a combined total personal PV and/or First Line QV from orders on your first level downline, equal to 22,500 for the same three consecutive months. - Tier Two Eligibility – Qualify for Tier One, and then concurrently accumulate a total of 22,500 QV on your second level downline for the same three consecutive months. Go to the SeneGence Distributor Programs>SeneCar to learn more.

Back

Office>Distributor

Resources>Recognition

Field Leader, State/Province Founder & State/Province Leader Programs SeneGence annually evaluates the leadership skills and productivity of Field Leaders in each state. The Annual Leaders’ Conference recognizes and honors those who emerge over the course of the year showing dedication to the growth of SeneGence in their region. These individuals take a vital role within the overall development of the company as their personal business and organization continues to grow.

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These motivated, high-achieving individuals are called upon to help orchestrate important company and Distributor programs in the year to come. Like State/Province Founders, State/ Province Leaders are called upon to help organize company trainings and programs throughout the year. State Leaders are reviewed each year and receive recognition during Leaders Conference. Once a State/Province Founder is named, they will always remain the State/ Province Founder. The following qualifications are required to be considered as a candidate for the title of State/Province Founder or State/Province Leader: The Distributor must be a member of the Royal Court as a Royal in Waiting or Above, a Field Leader or On Track Field Leader without compliance issues, and Distributor must attend P.I.T. Stop (Princess In Training). Royal Court The Royal Court was designed to identify Distributor Downline growth. Titles of the Royal Court reflect the depth and productivity of your growing sales force. On The Road to Royalty – You are just beginning to grow…. Maiden/Squire – Distributor must place a 300PV order and have 3 personally sponsored Distributors with 300PV or more in same month. Royal in Waiting – Distributor must place a 300PV order and have 5 personally sponsored Distributors with 300PV or more in same month. The Royal Court –You and your downline members are a ‘Realm’ within your upline Crown Princess’ ‘Dominion’. Royal – A Distributor has the same accomplishment as a Royal in waiting for two consecutive months. Any five first line Distributors may qualify for each month. Lady/Lord - Meet qualifications for Royal + have five (5) 2nd level distributors with 300PV in same 2 consecutive months. Any five first line Distributors and any five second line Distributors may qualify for each month. Countess/Count - Meet qualifications for Lady/Lord + have five (5) 3rd level distributors with 300PV in same 2 consecutive months. Any five first lines, any five second line, and any five third line Distributors may qualify for each month. Duchess/Duke - Meet qualifications for Countess/Count + have (5) 4th level distributors with 300PV in same 2 consecutive months. Any five first lines, any five second line, any five third line, and any five fourth line Distributors may qualify for each month. Princess/Prince - Meet qualifications for Duchess/Duke + have (5) 5th level distributors with 300PV in same 2 consecutive months. Any five first lines, any five second line, any five third line, any five fourth line, and any five fifth line Distributors may qualify for each month. Dominion Crown Princess/Prince - Simultaneously meet all qualifications for Princess/Prince and achieve a Group Sales of $1,000,000.00 (USD) or 500,000PV. Ruby Crown Princess/Prince - Simultaneously meet all qualifications for Crown Princess/Prince + achieve a Group Sales Volume of $2,000,000.00 or 1,000,000 PV. Sapphire Crown Princess/Prince - Simultaneously meet all qualifications for Ruby Crown Princess/Prince + achieve a Group Sales Volume of $3,000,000.00 (USD) or 1,500,000 PV. Emerald Crown Princess/Prince - Simultaneously meet all qualifications for Sapphire Crown Princess/Prince + achieve a Group Sales Volume of $4,000,000.00 (USD) or 2,000,000 PV.

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Queendom Queen/King - Simultaneously meet all qualifications for Crown Princess/Prince + achieve a Group Sales of $5,000,000.00 (USD) or 2,500,000PV. Ruby Queen/King - Simultaneously meet all qualifications for Queen/King + achieve a Group Sales Volume of $6,000,000 (USD) or 3,000,000 PV. Sapphire Queen/King - Simultaneously meet all qualifications for Ruby Queen/King + achieve a Group Sales Volume of $7,000,000 (USD) or 3,500,000 PV. Emerald Queen/King - Simultaneously meet all qualifications for Sapphire Queen/King + achieve a Group Sales Volume of $8,000,000 (USD) or 4,000,000 PV. Amethyst Queen/King - Simultaneously meet all qualifications for Emerald Queen/King + achieve a Group Sales Volume of $9,000,000 (USD) or 4,500,000 PV. Empire Empress/Emperor - Empress/Emperor – Simultaneously meet all qualifications for Crown Princess + achieve Group Sales of $10,000,000.00 (USD) or 5,000,000PV Each Distributor who obtains the status of Maiden and above by the end of the Seminar Year on March 31, will maintain the title earned for following year. If during the following year Distributor obtains a higher level, the Distributor will be recognized for the higher levels as they achieve them. The title earned at the end of the following Seminar Year will then be the title that carries over for the next year. If a Distributor does not reach the same level as the previous year, the lower level title will be the title for the next Seminar Year until a higher title is reached. Distributors who reach level Crown Princess will maintain the title of Crown Princess. Crown Princesses are charged with the care, training, and development of all members of their ‘Dominion”. As well, they are charged with the continued development of their up and coming Royal Leaders and their ‘Realms’. Royals and Above are eligible to attend Leaders Conference. As a Distributor achieves the Royal titles, they receive the SeneGence Gold logo charms that are faceted to reflect the Mission Statement of SeneGence. Titles and corresponding Gold clad Charms:

Royal – gold clad Eye Charm Lady/Lord – gold clad Lips Charm Countess/Count – gold clad Persona Charm Duchess/Duke – gold clad World Charm Princess/Prince – exchange Logo Charm Holder for a gold clad SeneGence Logo Charm Holder

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Crown Princess/Prince ($1,000,000.00 - $1,999,999.00 GSV within a Seminar Year) - Awarded a gold clad SeneGence Logo Charm Holder with a Dark Blue Sapphire filled silhouette within the logo Ruby Crown Princess/Prince ($2,000,000.00 - $2,999,999.00 GSV within a Seminar Year) - Awarded a gold clad SeneGence Logo Charm Holder with Ruby filled silhouette within the logo Sapphire Crown Princess/Prince ($3,000,000.00 - $3,999,999.00 GSV within a Seminar Year) - Awarded a gold clad SeneGence Logo Charm Holder with a Light Blue Sapphire filled silhouette within the logo Emerald Crown Princess/Prince ($4,000,000.00 - $4,999,999.00 GSV within a Seminar Year) - Awarded a gold clad SeneGence Logo Charm Holder with an Emerald filled silhouette within the logo Queen/King ($5,000,000.00 - $5,999,999.00 GSV within a Seminar Year) - Awarded a gold clad SeneGence Logo Charm Holder with a Diamond filled silhouette within the logo Ruby Queen/King ($6,000,000 - $6,999,999 GSV within a Seminar Year) - Awarded a gold plated SeneGence Logo Charm Holder with a Ruby filled silhouette and the S and G filled with rubies. Sapphire Queen/King ($7,000,000 - $7,999,999 GSV within a Seminar Year) - Awarded a gold plated SeneGence Logo Charm Holder with a Sapphire filled silhouette and the S and G filled with sapphires. Emerald Queen/King ($8,000,000 - $8,999,999 GSV within a Seminar Year) - Awarded a gold plated SeneGence Logo Charm Holder with an Emerald filled silhouette and the S and G filled with Emerald. Amethyst Queen/King ($9,000,000 - $9,999,999 GSV within a Seminar Year) - Awarded a gold plated SeneGence Logo Charm Holder with an Amethyst filled silhouette and the S and G filled with Amethyst. Empress/Emperor ($10,000,000 GSV within a Seminar Year) - Awarded a gold plated SeneGence Logo Charm Holder with a Diamond filled silhouette and the S and G filled with diamonds.

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Annual Seminar Inner Circle Courts

Each Year at Seminar during The Make Sense Fundraiser and Awards Banquet (generally a formal affair) we pay homage to leaders in the field who train the sales force in the business of direct sales, selling techniques, customer service, product education, business management and sponsoring. Their leadership is reflected in the numbers. Distributors earn commissions on these volumes and recognition for these three Courts is based on the results within the country the Distributor resides. The three courts consist of the Personal Sales Court, the Sponsors Court and the Group Sales Volume Court. All qualifying members are acknowledged during the annual Make Sense Foundation Fundraiser and Awards Banquet at Seminar. As a qualified member of the Inner Circle Courts, when you register to attend Seminar, you are also invited to attend additional events reserved only for elite leaders, including an Inner Circle Court Dinner Party. This is a funpacked evening, held at a new, undisclosed location every year, with unique presentations and entertainment. Inner Circle Personal Sales Court Members of the Personal Sales Court have accumulated a minimum of $40,000 USD in Personal Sales Volume or 20,000PV within the Seminar Year. Personal Sales Court members receive a sash, a commemorative plaque and a gorgeous gold clad lapel lip pin set with a solitaire ruby.The Distributor with the highest personal sales over the course of the Seminar Year, in addition to the above recognition, also receives a gold clad ruby bracelet and a trophy. Inner Circle Personal Sponsors Court These Distributors are directly responsible for helping to grow the SeneGence Sales Force. This honored group of Distributors includes Field Leaders and On-track Field Leaders. Inner Circle Personal Sponsors Court achievers must sponsor at least 20 firstline Distributors who each have a cumulative 300PV during the Seminar Year. Each court member receives a sash and plaque to memorialize their achievements, plus a gold clad lip lapel pin with a solitary sapphire that signifies their sponsoring efforts. In addition, the Distributor with the greatest number of personally sponsored qualified new downline members during the Seminar Year also receives a gold clad Sapphire bracelet and a trophy. Inner Circle Group Sales Volume Court A qualifying Distributor achieves entrance into the Group Sales Volume Court (GSV) by accumulating a Downline sales volume (on Lines 1 through 5) of $200,000 USD retail sales (100,000PV) or higher during the Seminar Year. Recognition for this Court begins with a minimum of $200,000 USD cumulative downline retail sales and continues up through the many court ranks to the million dollar level. From that point, group volume recognition is based on million dollar sales increments until the highest level, ten million dollars, is achieved. Group Sales Volume achievers are recognized at Seminar during the Make Sense Foundation Awards Banquet and each receives a sash, commemorative plaque and gold clad lip lapel pin with a solitary diamond and Diamond Bar pins that denote the level of achievement are also awarded one time for the value of the achievement reached. In addition, the Distributor with the highest Group Sales Volume also receives a gold clad diamond bracelet and a trophy.

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Each of the #1’s from the three Inner Circle Courts is given the opportunity to Hostess downline training during the Seminar Year with the C.E.O. and Founder of SeneGence, Joni RogersKante, as her guest speaker. Dominion Inner Circle Courts At Seminar, every Distributor receives an invitation to a reception, held by their upline Crown Princess. This event gives Crown Princesses an opportunity to honor the year’s achievements of their Downline. Dominion Inner Circle Court Members are honored by their Crown Princess for their achievements in Sponsoring, Personal sales, and Group Sales Volumes. Dominion Court levels are achieved by reaching no less than one half of the Seminar Inner Circle Court levels of achievement. The Dominion Inner Circle Court levels are: Dominion Personal Sales Court - $20,000 (USD) or 10,000PV Dominion Sponsor Court – 10 qualified new first line sponsored within the Seminar Year with accumulated 300PV each. Dominion Group Sales Volume Court - $100,000 (USD) GSV or 50,000PV Seminar SeneStar Trip Every Distributor may qualify as a SeneStar and earn the annual SeneStar Trip to exotic destinations. SeneGence has an exciting Distributor incentive to reward all SeneGence Distributors who balance both personal sales and sponsoring and training a downline that, in turn, does the same. The Annual Seminar SeneStar Trip usually commences the month of April, following Seminar. The program includes a reimbursement program for air fare. Seminar Year Personal Sales Volume (PSV)

Seminar Year Group Sales Volume (GSV)

Percentage of SeneStar Trip Cost Covered by SeneGence

$25,000

$1,000,000

100%

$50,000

$800,000

100%

$75,000

$600,000

100%

$100,000

$400,000

100%

$125,000

$200,000

100%

$150,000

$50,000

100%

$100,000

$40,000

75%

$75,000

$25,000

50%

$50,000

$15,000

25%

Here is how to qualify: (Refer to matrix) As long as you have met all of the requirements within the Seminar year, all SeneSales Field Leaders and On-Track Field Leaders who have achieved at least one level of total Personal Sales Volumes with no less than the corresponding Group Sales Volume (on Lines 1-5) will win the SeneStar Trip. If you reach at least $75,000 PSV & at least $25,000 GSV you may join us on the trip at 50% of the cost of the trip. Qualifying Distributors must reach the levels listed during the Seminar Year (April 1 – March 31). Log on to your SeneGence Distributor Back Office>Events> SeneStar Trip to see the official rules and learn more about this year’s location.

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Leaders L.I.P.S. Trip The L.I.P.S Trip (The League of Independent Personal Sponsors) is an exotic trip designed for the Royalty Field Leaders. L.I.P.S. rewards Leaders for the personal sponsoring efforts and the growth of their first line within the ‘Leaders’ Year’. “You are as strong as your first line” and to make it even more exciting – plan on taking a very exciting trip to a foreign country for your achievement! Here is how: Earn 50,000DV (Distributor Point Value) from Oct. 1st to Sept. 30th from your first and second down lines within the contest period: • Earn 300DV per new Distributor in your first line • Earn additional PV from new recruits’ sales and sponsoring during the contest period. (One PV=One DV, up to 1500PV per new Distributor per quarter) There are many ways to qualify: 1. Earn 50,000 First-level DV for your FREE trip 2. Earn 60,000 First-Level DV for one free trip plus you qualify to bring a guest for a reduced fee 3. Earn 100,000DV with a minimum of 50,000 coming from your 1st level and the balance from your 2nd level to qualify for 2 FREE tickets Log on to your SeneGence Distributor Back Office>Events>LIPS Trip to see the official rules and learn more about this year’s location for another exciting LIPS Trip adventure!

ManaGence Program The ManaGence™ Program is a leadership program designed for the top level of SeneGence® Independent Distributors. Participants in the ManaGence Program receive certain rights and benefits exclusive to field leadership. “Field Leader” is the term for a Distributor who is a Countess/Count or above and is a ManaGence Distributor. However, Distributors who have not yet reached the level of Countess/Count may participate in the ManaGence Program; they are called “On-Track Field Leaders.” On-Track Field Leaders receive some of the same rights and benefits as Field Leaders, including access to exclusive information. A Distributor who is in good standing with SeneGence can become a Field Leader or an On-Track Field Leader by request or invitation and upon acceptance by SeneGence of a ManaGence Agreement. In order to qualify as a ManaGence Field Leader, a Distributor must (1) be a Countess/Count or above; (2) have attended or committed to attend a P.I.T. Stop training event; and (3) sign the ManaGence Agreement. Log on to the SeneGence Back Office>Resources>Recognition Programs>ManaGence to learn more.

Distributor Insurance and Benefits Program PRO Insurance Managers, Inc., a leading national broker since 1951, is SeneGence’s endorsed resource for Health, Direct Seller Liability, Identity Theft, Life, Dental and Vision and many other benefits programs for Distributors. Thousands enjoy only the highest quality plans and assistance from PRO’s professional, licensed staff. PRO works with multiple “A Excellent” or higher rated insurance companies. This rating is vital, as it indicates the financial strength and stability of these carriers and “A” is the highest rating obtainable. The Direct Selling Association (DSA) exclusively endorses PRO Insurance to all member companies and their sellers for both Health Insurance and the Direct Seller Liability coverage. General Liability protects your home based business in the event of a claim or lawsuit prompted by possible claims including slip & fall, property damage, bodily injury, lawsuits and more nationwide. Most don’t realize that your homeowner’s insurance plans specifically exclude their business activities conducted at home or away. $1,000,000 of coverage, $300,000 of property damage coverage and with a $0 deductible for protecting your direct selling activities anywhere nationwide.

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PRO has access to most insurance companies and plans. In a majority of cases the Health Insurance coverage they recommend is not only broader, but it is also competitively priced (typically around ½ the cost of employer sponsored plans). PRO doesn’t offer HMO’s, rather they prefer to work with PPO’s (preferred provider organizations) since they are vastly broader in doctor and hospital choices and much less restrictive. These programs also don’t utilize a primary care doctor - you can go to any doctor in the network for maximum benefit. They will even pay benefits (at a reduced rate) when you see a doctor outside of the program. Customize a plan of coverage for yourself and/or family today. It’s easy to get a FREE immediate online, no obligation quote for the SeneGence endorsed plans! Just click the link below for immediate rates, full information and more on all of the programs offered. Once it gives you results, you’ll find complete plan information, provider directories and you can even apply online. PRO can help you through the process if you’d like with a quick call to their toll free lines. Thousands have experienced the first-class service received when dealing with PRO Insurance. In addition to the Health and General Liability plans offered, PRO also offers programs for Short Term Health, Level Premium Term Life, International Travel Medical, a Benefits Savings Card providing Dental, Vision, Prescription, Chiropractic, Alternatives and Hearing discounted benefits all on one card and more. Click on www.pro4.us/senegence.asp to see what all the excitement is about and why SeneGence and the DSA have endorsed these programs to their field forces.

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SECTION IV: Product Discounts, Ordering, Shipping, & Inventory “It doesn’t matter how you begin…what matters is how you end up”

Distributor Product Discount Schedule Understanding your discount schedule and deciding upon the amount of inventory you wish to be able to stock for immediate fulfillment is an important aspect of managing your cash flow and working at the maximum profit level. The following discount schedule is based upon the Suggested Retail Price and reflects the price discounts a Distributor receives when purchasing products from the company. Order discount is based on cumulative PV during the calendar month. Retail $0.00 – $199.50 $200.00 – $599.50 $600.00 – $1,499.50 $1,500.00+

PV (Wholesale) 0 – 99.50 100.00 – 299.50 300.00 – 749.50 750.00 or more

Discount 20% Discount 30% Discount 40% Discount 50% Discount

**In Canada, the conversion is made to the Canadian dollar. ***In Australia, the conversion is made to the Australian dollar. Orders for cumulative monthly PV under 100 receive a 20% discount. Orders for cumulative monthly PV between 100PV through 299.5PV receive a 30% discount. Orders for cumulative monthly PV between 300PV through 749.5PV receive a 40% discount. Orders for cumulative monthly PV of 750PV and each subsequent order during that calendar month, will receive a 50% discount, regardless of size. The discount percentage for the order plus the order quantity needed to reach the next discount level will appear near the bottom of your basket page as you complete the order.

Distributor Product Order Options To accommodate various business start up options and budgets there are several ways to process product orders. The best way to begin a business is with plenty of inventory to deliver on the spot. However, not every Distributor is in a position to begin their business that way. If you’ve got the muster…we’ve got the means. You may choose to build your SeneGence business by: Standard Distributor Product Order – Processing an order to be delivered to you for delivery to your customers (you pay discounted wholesale). There are several ways in which to process a Standard Distributor Product and Supply Order in the USA, Canada, and Australia:

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• By Submitting Order via Online Form • By Fax • By Phone • By Mail All orders must be paid in full when the order is placed. Orders are generally processed for shipping within 2 business days. You may expect delivery between five to seven working days upon shipment of the order. For purposes of commission calculations, all orders are entered and applied for the month in which they are received and paid. Online Orders It is recommended to place your orders online. The online ordering system is the simplest, most efficient method of ordering. To place orders online log onto the Distributor Back Office>Order>Product for the Product Order Form. To access the Distributor Back Office, you will need a login ID and password. You will receive a Distributor ID # and Password when you are accepted as a Distributor. You may change your password. Do not include dashes in the password. To set your permanent password, go to your Distributor profile. AutoShip Orders Signup for AutoShip and receive automatic shipments of your favorite products at the frequency you choose. Place three consecutive $100 + shipments in a row and receive a free gift. AutoShip is also available to customers. Available in US only. Fax Orders For US and Canadian Distributors, to place an order by fax, please fax to 949-521-6166. Australian Distributors may fax orders by faxing the AU SeneCare Department at 08.6350.1156. Please do not fax an order then mail the payment separately. This will cause processing delays. Phone Orders For US and Canadian Distributors, to order by phone please call 949-521-6161 and ask for SeneCare to place an order. Australia may place phone orders by dialing the AU receptionist at 1800LipSense. Please have your order prepared, your Distributor ID #, and your method of payment available prior to calling SeneCare. Mail Orders To place an order in the US and Canada by mail, please mail to: SeneGence International Order Department 19651 Alter Foothill Ranch, CA 92610 Australian mail should be sent to SeneGence International 1/1 Strathaird Rd Bundall, QLD 4217 Mailed or faxed orders for products, testers, and supplies must be placed on a current SeneGence Product or Supply Order Form and be accompanied by an Order Cover Sheet.

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It is vitally important that your full name and Distributor ID Number are clearly legible at the top of each individual form in the event that the forms that are part of one order get separated. You need to carry over the order amounts on each form and calculate the tax, shipping, and handling on the Order Cover Sheet only. If payment is being made by credit card or electronic check, please make sure that the complete information is filled out on the Order Cover Sheet every time a credit card order or electronic check is used. If payment is being made by check or money order, please make sure that the payment accompanies the order. Demo Drop Ship Order (DDS0) – Processing an order to be delivered at the home or office of a Demo Hostess (to be used in the event you do not have inventory at a demo - you pay discounted wholesale). This program enables every Distributor to sell the entire SeneGence product line at a demo even if they do not have inventory on hand. DDSO is a ‘drop ship’ order system where upon completion of the Glamour Demo you order products and have them sent directly to your Hostess for her to distribute to her demo guests. For more information and to place a Demo Drop Ship order, go online to Business> Customers > Demo Drop Ship Program. Available in US only. Customer Direct Order (CDO) – Process an order for an individual customer and have SeneGence ship directly to the customer (Customer pays retail and you receive retail sales income credit from SeneGence). CDO allows your customers to order and receive product directly from the company, at the same time providing payment to the selling Distributor of retail profit (minus a small service charge) and to their upline for commissions and bonuses on the sale. For more information go online to Business>Customers> Customer Direct Order. You will find that the combination of ordering options above gives you flexibility in your business and the opportunity to quickly and efficiently supply the entire line of SenseCosmetics and SeneDerm Anti-Aging SkinCare to your customers. Available in US only. Substitutions, Additions, and Deletions from Order Once an order has been submitted into the system, there can be no additions or deletions made to that order after payment has been accepted. That includes phone orders already submitted and fax orders that have been entered and completed by a SeneCare employee. If you choose to add more items to an order after it has been submitted you must make and complete another separate order. For inventory tracking purposes, items can not be substituted. Order Processing Orders on in stock product will be processed and ready for shipment within 72 hours of being placed. To check whether a product is in stock, please refer to your online order form in your Distributor Back Office. Please contact SeneCare at (949)521-6161 x 5 regarding projected status on out of stock items. Our projected in stock date on out of stock items is an estimate, not a guarantee. Orders for out of stock products will be shipped as soon as available, but not more than 30 days following the date of the initial order. Should it not be possible to process and ship your order in full within this time period, Distributor will be so advised and may either substitute other in stock product or cancel the unfulfilled portion of the order for a refund. However, any commissions or bonuses that have been paid on the basis of an order which is thereafter cancelled, many be deducted from subsequently earned commissions or bonuses.

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Shipping Options A variety of shipping options are offered on the hard copy Product and Supply Order Forms and through the Online Product Order Form. SeneGence takes pride in processing all orders and shipping orders in an efficient and timely manner. It is our goal to pack and ship every order received into the order system each day prior to 12:00pm the same day. However, we reserve the right to take up to 72 hours to pack orders, especially during high volume days the end of each month. There is no shipping during National/Country specific holidays and weekends. Hold for Pick Up The ‘Hold for Pick Up’ Option is available in the USA and in AU at the Australian warehouse. Pick up orders must be submitted and paid for in full 72 hours plus one business day in advance of pick up. Regular Shipping Although we ship products in a timely manner, we can not control the shipping methods or practices, or control the timeliness in which the shipping companies deliver your orders. Allow 72 hours for processing and 5-7 business days for delivery. (This option not available in AK, GM, HI, MP, PR and VI). Shipping total will depend on your order subtotal after discount. 2-3 Day Shipping Allow 72 hours for processing and 2-3 business days for delivery. Additional $15 charge will be added to base shipping charge for this service. Rush Shipping All Rush Orders are shipped overnight the day they are processed. lease allow 72 hours for processing and one business day for delivery. SeneGence’s goal is to process orders within 12 hours, and then ship the day processing is complete (if received after 12:00pm the order will not be processed until the next day). SeneGence does not guarantee that rush shipping will be shipped the same business day the order is received. If you need to have shipping rushed, make sure you check the Rush Shipping box. Additional $45.00 charge will be added to base shipping charge for this service.

Inventory: How Much Do I Need? Each Distributor must determine the product order/delivery option that best suits their needs and their abilities. The best option is always to carry inventory for immediate, on-the-spotdelivery to capture increased impulse sales. Generally speaking, Distributors select inventory levels based upon the number of Demos they would like to hold each week. The goal is to have accumulated plenty of inventory so that you may send purchased products home with each demo guest. That means a supply of all shades, formulas, and items. Using a portion of your Demo profits is the best way to build inventory, and it can take some time … regardless of how much you begin with initially. The sooner you build a good size inventory for immediate delivery, the sooner you will see your profits increase due to impulse buying. Refer to the Inventory Flow Sheet in the SeneGence Distributor Training Guide to help determined the desired amount of inventory that best suits your needs.

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Initial Product and Supply Order For your convenience SeneGence has created ‘suggested’ start up inventory sample Product Order Forms. Please review the examples of product and supply orders offered at different discount rates and varying inventory amounts, to service different numbers of customers. Go to the SeneGence Distributor Back Office>Order>Initial Sample Orders. There you will see sample orders for 300PV, 1000PV, 2000PV and 3000PV. Retail Exchanges (RMA’s) In the event that a customer is dissatisfied with any product, the Distributor and the customer must complete a Product Replacement Form. The Distributor may reimburse the customer the price of the product (minus 10%) or may trade the product for another item in the line. The Distributor may return the Product Replacement Form with the assigned Retail Merchandise Authorization (RMA) number along with the named product and a copy of the Customer Receipt or a completed Customer Exchange Form to the company. SeneGence will then send a replacement of the same product to the Distributor. Products or shades of a different type may not be used to replace an item(s). To get copies of the forms go to SeneGence Distributor Back Office>Business>Forms or complete the process electronically by going to SeneGence Distributor Back Office>Business>Product Returns/RMA.

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SECTION V: SeneGence Business Necessities The SeneGence Distributor Compensation Plan SeneGence Distributor Compensation Plan was written by the first Distributor, Joni RogersKante, for Distributors with one question in mind: “If I were to help a company brand a product line and grow a sales force – what would the remuneration features and benefits look like as an absolute necessity in return for my service?” The First 8 Necessities 1. Represent products that really work (built on truth)! 2. No limitations for sales income from sales or commission income earned from Downline growth and productivity (earn based upon my own efforts). 3. Build a sales force as wide as desired with the largest earnings on the first line (build on rock). 4. Receive remuneration for every dollar sold in Downline sales organization (teach all how to multiply and increase sales and growth year after year). 5. No Breakouts or break-a-ways for income calculation at any level of achievement (teach others to be just as successful, if not more, than self and not be penalized). 6. Compression (earn commissions on all those trained in Downline even if their Uplines fall out). 7. Unlimited growth opportunities (if so desired, as company expands so too does downline and commissions). 8. Travel opportunities as a way of life (travel the world and see different cultures as a basic function of doing a good job on a daily basis). The SeneGence Distributor Compensation Plan Dual Opportunity There are two parts to a SeneGence Distributors Compensation Plan – Sales Earnings and Commission Earnings. SeneGence is a Direct Sales company with a Multi-Level Marketing (MLM) Distributor Compensation Plan. Direct Sales means that Independent Distributors may purchase products from the company at a wholesale price and sell to end users at a retail price, the difference between the two is the Distributors sales income profit. The MLM part of SeneGence Distributor Compensation Plan refers to the Downline Commissions and Bonuses a Distributor may earn for building, growing, and training a sales force they’ve sponsored to sell the company’s products. Three Avenues of Income There are three ways SeneGence Distributors may earn income each month: 1. Retail Profits – The difference between wholesale cost (minus overhead) and retail sale. 2. Down Line Commissions – Commission earnings for minimum productivity of Downline organization (100PV or less per month). 3. Group Sales Volume Bonus (GSVB) – Commission earnings on all accumulated PV on level 1 and qualifying level 2 through level 5 for all commissioned product sold greater than 101PV.

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Retail Profits A Distributor may purchase SeneGence product directly from the company at a discounted price from Suggested Retail. The discount ranges from a 20% discount up to a 50% discount, depending upon the size of the order and the amount of products previously ordered within a calendar month. That means a SeneGence Distributor may double their investment or earn up to -100% profits (minus overhead) on the Retail Sales of SeneGence Products. Downline and GSV Commissions: The Simple Version Downline and Group Sales Volume Bonus (GSVB) Commissions are paid each month on orders for commissionable product, placed by SeneGence Distributors within your downline Distributors in levels 1 through 5, provided you meet the qualifications to receive commissions and bonuses for each level in that month. To earn Downline and GSV Bonus Commissions from one level to the next the minimum requirements increase slightly. Downline Commission are calculated separately from GSV Bonus Commissions as Downline Commissions measure the structural organization (the frame work) you are building by using a minimum calculation for even the smallest of orders while GSV Bonus Commissions measure the total sales volume (productivity) of your entire organization (Levels 1-5). SeneGence calculates Downline and GSV Bonus Commission checks at the close of each calendar month. Commission earnings are then credited to your SeneCash account and (at your discretion), sent to you in the form of a check. Invoices reflecting the detail and corresponding checks are mailed to Distributors on or about the 15th of the following month. Go to the SeneGence Distributor Back Office>Business>Compensation & Commissions for a copy of the SeneGence Distributor Compensation Plan and a more detailed explanation. Downline Commission A SeneGence Distributor may begin to earn Downline Commissions when they sponsor their very first new SeneGence Distributor into their first line. Commissions are calculated for all orders within the calendar month for any value of 100PV or less. Down Line Commission 1st Line - 10% 2nd Line - 20% 3rd Line - 30% 4th Line - 5% 5th Line - 5%

To receive Downline Commissions for a percentage of the first 100PV or less from orders of Distributors in lines 1 through 3 within the same calendar month for which the calculations are made: • You must have placed no less than a 100PV order. To receive Downline Commissions for a percentage of the first 100PV or less from orders of Distributors in line 4 the same calendar month for which the calculations are made: • You must have placed at least a 200PV order. • There must be five (5) Distributors on the 1st level who each ordered at least 100PV. • Lines 1 through 3 must have a total Group PV of at least 10,000.00.

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To receive Downline Commissions for a percentage of the first 100PV or less from orders of Distributors in line 5 the same calendar month for which the calculations are made: • You placed an order of at least 300PV. • At least five (5) Distributors on your 1st level each placed an ordered of at least 200PV. • Lines 1 through 3 must have a total Group PV of at least 15,000.00. Group Sales Volume Bonus The Group Sales Volume Bonus Commission is paid on the total CV of all product orders placed by your Downline Distributors (in Lines 1-5) in the same qualifying month minus the first 100CV. (Commissions were already paid on this amount in the Downline Commission). Group Sales Volume Bonus Commissions have NO LIMIT! Group Sales Volume 1st Level - 10% 2nd Level - 6% 3rd Level - 4% 4th Level - 3% 5th Level - 2%

Here is how you receive Group Sales Volume Bonuses based on each line within your Organization: 1st Line - The payout is 10% of any 1st line Distributor’s CV over 100 as long as you personally placed at least 100PV in the same qualifying month. Lines 2-5 -Lines 2-5 -To earn Group Sales Volume Bonuses on 2nd, 3rd, 4th, and 5th lines, Group Sales Volume Bonus qualifications are: 1. You personally place at least 300PV within the same qualifying month. 2. Have five Distributors on your 1st line that have been personally sponsored by you and that have each placed at least 300PV within the same qualifying month. 3. Each level of Distributors (lines 2-5) must have at least five Distributors that placed at least a 300PV order to qualify for commission payout of that level. 4. Each level (2-5) must fulfill qualifications for that line and the levels above it to receive the commission for the line.

Group Sales Volume Bonus Commission Program Qualifications Level

# of Distributors

Personal PV

1st 2nd

1 or more 5 or more (& 5 on the 1st line) 5 or more 5 or more 5 or more

3rd 4th 5th

Bonus

300 300

Distributor PV Each 300 300

300 300 300

300 300 300

4% 3% 2%

10% 6%

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Compression Group Sales Volume Bonus calculation includes Compression. That means if a SeneGence Distributor on any given line 1 through infinity (until there is a five level down pay out) does not place an order in the given month, the Distributor’s CV of their downline Distributors below them will move up one level for purposes of calculating the percentage pay out for that particular level of the Group Sales Volume Bonus (provided other qualifications have been met). This is because each level of qualification for GSVB must be fulfilled by at least five distributors who were personally sponsored by the Distributor on the line immediately above them. No Breakage Another great feature of the SeneGence Compensation Plan is that if you sponsor a Distributor who performs at a higher level than you there is no down side – you simply earn more money! There is no breakage, which means should someone in your organization build a larger, more productive organization aside from the remaining portion of the organization you’ve built you both win as they are not promoted out (and you demoted down). Instead, you both become more successful. The organizations we build are permanent for the purposes of commission pay out calculations and can not be moved. Sponsor as many top notch high producers as you choose and smile, smile, smile. SeneCash

Streamline your SeneGence business tasks by working smart to compound the return on your retail profits and commissions. Work smart by saving time and money by using your SeneCash account to purchase products for resale and business supplies. SeneCash is a free service to all SeneGence Distributors and is located in your SeneGence Back Office. It is a consolidated account system which combines all bi-monthly Customer Direct Order (CDO) retail sales profits and monthly Downline and Group Sales Volume (GSV) Bonus Commissions, into one simple, clear, and easy-to-access account at your fingertips. There is no fee for reserving or using the funds within the system. The purpose of the program is to help you direct funds towards the growth of your business and to eliminate the check processing fees so you have more funds in which to build your inventory. The SeneCash program provides a safe and realistic business process that makes it easy for you to ensure you are investing in your future by investing in your business instead of wasting funds on frivolous or impulse purchases elsewhere that don’t serve your business goals and plans. Choose to leave all of your Downline and Bonus Commissions and sales income checks from CDO orders in your SeneCash account…or none…It is up to you to determine how concise and direct you are in building your business by using your funds appropriately to do so. Here’s How SeneCash Works Twice per month (on the 7th and the 22nd) all CDO retail sales profits you have earned will be credited to your SeneCash account. As well, each month (on the 15th) all monthly Downline and GSV Bonus Commissions earned will also be credited to your SeneCash account. In your

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back office is a real time ledger of the current balance of your SeneCash account, displaying the monies which are available to you to purchase products and supplies, or to be directly distributed to you by check; whichever you so desire. The Distributor default setting for SeneCash is set to reserve 100% of earnings in your SeneCash account for your use. You may however choose to retain your earnings at any of the following levels: • • • • • •

0% 10% 25% 50% 75% 100%

The retained amount may be chosen, and changed, by you in your Distributor Back Office found at Business>SeneCash at any time. The portion (of newly accrued earnings) which you choose not to be retained and which have not been spent, will be distributed to you automatically by check, on or about the 15th of each month. Changing Retained Percentages You may change the percentage of earnings you have decided to retain at any time. (However note that changes made after the 10th of any month will not take effect until the next month’s distribution.) Changes to the percentage of SeneCash to be held apply only to new earnings. At any time you may use all or part of your available SeneCash for any payment that appears on your regular order form (product, supplies and annual renewal). Collecting Previously Retained Earnings If you would like a distribution of previously retained earnings you may ask for those at any time. Should you wish to request the additional disbursement of any amount remaining in your SeneCash account, at any time – and independent of the setting you have chosen for the percentage of earnings reservation – you need merely request such monies and SeneGence will issue a check to you. A Distribution Request page is in the back office for this purpose. Distribution requests received prior to 11:59 PM on Sunday will be issued the following Friday. Earnings and Commission Information In addition to the current balance of your SeneCash account, your CDO and Commission Statements is available for you to view on-line, in your SeneGence Back Office. These reports remain viewable for 18 months, and may be printed by you at any time. Distribution of Checks Once per month (on or about the 15th) SeneGence will send you a check for whatever portion of your new earnings which you have chosen to have distributed (CDO posted after the 25th of the prior month + monthly Downline and GSV Bonus Commissions earned for the prior month). There will be the standard $5.00 check fee for all check disbursements.

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Number of new contacts (WOW-ing)

Number of Demos booked for next week

Number of Demos held

Number of new Distributors sponsored

Number of potential Distributors interviewed

Week's Activity Recap

New Total

Year-To-Date Total

$_________________ Supplies and Testers

$_________________ PV for week

Orders Submitted to Company This Week

WEEKLY SALES TOTAL (LESS TAX) (Total of Shows/Kiosk/Demos/Reorders/Misc. Sales)

Income

# of Bookings

CDO SeneSite Sales Sales Tax

Estimated Weekly Gross

YEAR-TO-DATE SALES TOTAL (LESS TAX)

New Distributors Sponsored at Demo/Event

Week Ending Date

Deposit total collected in product account. Allow 50% of sales for product replacement less other business expenses.

Estimated Weekly Gross Profit

Weekly Sales Total Less Tax

New Glamour Demo

Sponsor's Name

# of Calls/Guests # of Expenses (include Hostess) Orders

Phone Number

This Week's Total

Glamour Demo SeneBlend Demo Event

I.D.#

WOWing #hours________ #names_______________ Bookings #______________________________________ Sales: New Business $_____________________ Reorders $_____________________ Sponsoring #_____________________

Weekly Goals

Day & Time Hours Spent

Distributor Name

Please send a copy of this summary to your sponsor and retain a copy for your files. Use additional sheets if necessary.

Weekly Summary Sheet

$

$

$

120610

Free Hostess Gift Cost

Weekly Summary Sheet


SeneGence Distributor Compensation Grids The following grids are examples of potential earnings a Distributor might earn in Downline and Group Sales Volume Bonus Commissions assuming the stated volumes are produced (and any additional qualifications have been met). This is not a quantity or representation of actual earnings and all Distributor’s results vary – depending upon how they build and perform their own independent Distributorship. These examples are provided to help you understand how the SeneGence Compensation Plan works, in differing scenarios.

Grid #1 - 5 with 5 on five levels with 50PV and 100 personal PV Total PV For Individual PV For Level Downline Downline PV GSVB Ordering Commission 1 2 3 4 5 Totals

5 25 125 625 3125 3905

50 50 50 50 50

50 50 50 50 50

0 0 0 0 0

Total PV 250 1,250 6,250 31,250 156,250 195,250

Downline Commission $25 $250 $1,875 $0 $0 $2,150

Group Sales Volume Bonus $0 $0 $0 $0 $0 $0

Total $ $25 $250 $1,875 $0 $0 $2,150

Grid #2 - 5 with 5 on five levels with 100PV and 100 personal PV Total PV For Individual PV For Level Downline Downline PV GSVB Ordering Commission 1 2 3 4 5 Totals

5 25 125 625 3125 3905

100 100 100 100 100

100 100 100 100 100

0 0 0 0 0

Downline Total PV Commission 500 2,500 12,500 62,500 312,500 390,500

$50 $500 $3,750 $0 $0 $4,300

Group Sales Volume Bonus $0 $0 $0 $0 $0 $0

Total $ $50 $500 $3,750 $0 $0 $4,300

Grid #3 - 5 with 5 on five levels with 100PV and 200 personal PV Total PV For Individual PV For Level Downline Downline PV GSVB Ordering Commission 1 2 3 4 5 Totals

5 25 125 625 3125 3905

100 100 100 100 100

100 100 100 100 100

0 0 0 0 0

Total PV 500 2,500 12,500 62,500 312,500 390,500

Downline Commission $50 $500 $3,750 $3,125 $0 $7,425

Group Sales Volume Bonus $0 $0 $0 $0 $0 $0

Total $ $50 $500 $3,750 $3,125 $0 $7,425

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Grid #4 - 5 with 5 on five levels with 100PV and 300 personal PV Total PV For Individual PV For Level Downline Downline PV GSVB Ordering Commission 1 2 3 4 5 Totals

5 25 125 625 3125 3905

100 100 100 100 100

100 100 100 100 100

Downline Total PV Commission

0 0 0 0 0

500 2,500 12,500 62,500 312,500 390,500

$50 $500 $3,750 $3,125 $3,125 $10,550

Group Sales Total $ Volume Bonus $0 $50 $0 $500 $0 $3,750 $0 $3,125 $0 $3,125 $0 $10,550

Grid #5 - 5 with 5 on five levels with 300PV and 300 personal PV Total PV For Individual PV For Level Downline Downline PV GSVB Ordering Commission

Total PV

1 2 3 4 5 Totals

1,500 7,500 37,500 187,500 937,500 1,171,500

5 25 125 625 3125 3905

300 300 300 300 300

100 100 100 100 100

200 200 200 200 200

Downline Commission $50 $500 $3,750 $3,125 $3,125 $10,550

Group Sales Total $ Volume Bonus $100 $150 $300 $800 $1,000 $4,750 $3,750 $6,875 $12,500 $15,625 $17,650 $28,200

Grid #6 - 5 with 5 on five levels with 750PV and 300 personal PV Total PV For Individual PV For Level Downline Downline PV GSVB Ordering Commission 1 2 3 4 5 Totals

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5 25 125 625 3125 3905

750 750 750 750 750

100 100 100 100 100

650 650 650 650 650

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Total PV 3,750 18,750 93,750 468,750 2,343,750 2,928,7500

Downline Commission $50 $500 $3,750 $3,125 $3,125 $10,550

Group Sales Total $ Volume Bonus $325 $375 $975 $1,475 $3,250 $7,000 $12,188 $15,313 $40,625 $43,750 $57,363 $67,913


Frequently Asked Questions Regarding the SeneGence Compensation Plan If you are new to Direct Sales the Distributor Compensation Plans can seem a bit confusing. Listed below are questions and answers that will give you a better understanding of the SeneGence Distributor Compensation Plan. 1. If Downline Commissions are only paid on the first 100CV of a Distributors’ order, is that the only part of the order that is commissionable? Answer: No. The balance of the order (CV) is commissionable in the Group Sales Volume Bonus. 2. If a Distributor places more than one order in a given month that is in excess of 100CV, does the Downline Commission get paid again? Answer: No. Downline Commissions are paid on the first 100CV in a given month, after that, the balance of the order(s) goes into Group Sales Volume Bonus. 3. To receive the 10% Group Sales Volume Bonus on my first level, do I need to have five 1st level Distributors that have each placed 300PV in a given month? Answer: No. The payout is 10% on your first level as long as you have achieved 100PV in the month the order(s) are placed. 4. To receive the 6% bonus on my second level do I need five 1st level Distributors with PV of 300 each, and five 2nd level Distributors with PV of 300 each? Answer: Yes. Remember that these five first level Distributors that qualify you for the Group Sales Volume Bonus beginning at level 2, must be personally sponsored by you, and you must also have 300PV. 5. If a certain level does not fulfill its qualification for Group Sales Volume Bonus, can you skip that level and go down to the next level that does? Answer: No. Each level prior, along with the level commissionable, must fulfill the requirements. 6. Is a month a 30-day period or a calendar month? Answer: Calendar month. 7. If I have a first level Distributor that does not place an order in a given month, but some of her downline does, would I still receive downline commissions on those Distributors? Answer: Yes, through level 5.

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8. If I have a first level Distributor that does not place an order in a given month, for purposes of Downline Commissions, does the next level get moved up? (Compression) Answer: No. Downline positions are permanent and do not compress for purposes of qualifying or calculating payout for Downline Commissions (however, see GSVB below). You still receive Commissions for all levels you qualify for on the rest of your downline. Downlines stay in place at all levels. 9. Where in the compensation structure does levels moving up (compression) occur? Answer: Compression occurs in the Group Sales Volume Bonus commission structure for the purpose of calculating the payout amounts. If you have a Distributor on a given level that does not place an order in a given month, that downline will move up a level for percentages paid on the various levels that month. However, calculations made for qualification for GSVB do not include compression. 10. Does a (compressed) Distributor in my second line, who has placed an order and moves up to my first line (due to the recruiter not placing an order that month), count toward my five first line Distributors that I need to qualify for the Group Sales Volume Bonus on levels 2 through 5? Answer: No. You will receive the higher bonus percentage on the order once you are qualified to receive them. The qualifications to be paid on your second through fifth line begin with five first line Distributors that you have personally sponsored, that have 300 PV. Each level of qualification for Group Sales Volume Bonus must be fulfilled with at least five personally sponsored Distributors from an upline Distributor. 11. So I will receive the higher bonus percentage resulting from compression, but it will not begin the qualification process for the payout for Group Sales Volume Bonuses unless at least five on my first level were personally sponsored by me and so on down for each one of the levels. Answer: That is correct.

SeneBlends SeneBlends not only describes our versatile blendable SenseCosmetics product line, it is also a multi-faceted Distributor training program designed to teach Distributors about glamour, shading, application, and blending. SeneBlends includes the application silhouettes and Customer Profile found in your Back Office. There are features of the SeneBlend Program that offer SeneGence Distributors and their guests the opportunity to attend local Glamour Clinics held by area SeneGence Field Leader Royalty. There are dozens of SeneBlend Silhouettes featuring an array of gorgeous glamour looks made available to Distributors. Each SeneBlend includes instructions on how to achieve the corresponding look. To access the SeneBlend Silhouettes go to the SeneGence Distributor Back Office>Resources>Marketing Materials>SeneBlends. Assemble your very own SeneBlends portfolio of fabulous, versatile looks from which your Customers may select. You will learn and earn as your customers practice application techniques by following the SeneBlend step-by-step instructions.

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Additionally, use the SeneBlends Beauty Guide as inspiration and a glamour training tool.

Distributor Contact List Where will I find the people to help build my business? Initially, most people say “I don’t know enough people.” But after thinking for a few minutes, you will identify lots of people who are willing to join your team or Host a Glamour Demo. The chart below can be used to help you identify potential new Distributors and/or new customers. Relatives

Host Recruit Both

Social Contacts

Host Recruit Both

Friends

Host Recruit Both

People from Church

Host Recruit Both

Neighbors

Host Recruit Both

Friends from School

Host Recruit Both

Co-Workers

Host Recruit Both

Contact thru kids

Host Recruit Both

Spouses Co-workers

Host Recruit Both

Health Club & Spas

Host Recruit Both

Brides & Newlyweds

Host Recruit Both

People looking for $

Host Recruit Both

Hair & Nail Salons

Host Recruit Both

Others

Host Recruit Both

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Hostess Appreciation Program Many, many women will be happy to host a demo in exchange for the opportunity to earn free products and discounts. SeneGence has designed a simple Hostess Appreciation Program that will help you motivate your future hostesses to have a fun and profitable demo. Glamour Demos are the answer to building a foundation for your business that is sustainable, duplicable and profitable. A Glamour Demo is a group demo held in a home or office type environment where there is a Hostess with guests in attendance. We have developed a lucrative and competitive Hostess Appreciation Program that will give your Hostess many rewards: A Hostess can qualify to receive a “Thank You” SeneGift of the Distributor’s choice for Hosting a Glamour Demo with $300 minimum sales. Hostesses also receive a discount on her Personal Product Order based on the Demo Retail Sales (including outside orders) and future New Bookings from her Demo (see chart below). Total Demo Sales Less Hostess Personal Order

Discount Off Hostess Personal Order

New Bookings Discount Off Hostess Personal Order

Total Discount Off Hostess Personal Order (Sales & Bookings)

$1 - $300 $301 - $600 $601 and higher

10% 20% 30%

5% each 5% each 5% each

10% + ____ =       % 20% + ____ =       % 30% + ____ =       % Max discount   50 %

New Bookings* Discount – All New Demos Booked must be held within 30 days of the original Demo for the Hostess to receive credit. Each new Demo booked (up to 4) will equal an additional 5% off of the Hostess Personal Order. *Here are some groups of people to consider when helping your Hostess write her guest list: Relatives, friends, school, co-workers, church, social contacts, spouse’s co-workers, clubs, your children’s friend’s parents, sports teams, etc.

SeneGence Glamour Demo Guest List Name

Phone

Attending: Y/N

Ordered

Booked

Glamour Demo Hostess Pak The Glamour Demo Hostess Pak (GDHP) is designed to coach your Hostesses to have a successful Glamour Demo.

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It is important to do one-on-one Hostess Coaching whenever possible: At her home, at lunch, coffee break, after work, etc. Meeting with your Hostess and going through the GDHP in person will help to cement the Demo date. A Demo is less likely to reschedule or cancel when you establish this relationship, as does booking the Demo in close (within 2 weeks when possible). Here are some important steps in Hostess Coaching: 1. Review the contents of the Pak. Be sure that you have studied and understand the Hostess Appreciation Program on the Hostess Planner page in the Pak. 2. Use the Hostess Planner page in the Pak to establish her “gift goal” for free products and product discounts. 3. Help start her Guest List using the Planner, with a goal to invite 30 people; Tell her 15 will say ‘Yes’ and approximately 7 will attend. 4. Coach her on how to invite, using the best word choices to get good attendance… “Can I count on you to come?” 5. Show her how to get outside and absentee orders from those who can’t attend, and to invite them to host their own Glamour Demo. Only give a hostess 5 days after the Demo (and before the close of the month) to collect any extra orders for Demo host credit. 6. Have her mail Reminder Postcards, Evites, etc. These should be a reminder only, not the actual invitation. The real invitation is the Hostesses voice inviting them to attend … it does make a difference. 7. Have her also select a “back-up Hostess” in case of an emergency. It should be a neighbor, who could fill-in at the last minute if needed. 8. Follow-up with two enthusiastic calls to your hostess. • First call: within 48 hours of booking the Demo to verify the date & time of the demo. Have her select the time to begin the “demonstration”… 30 minutes before will be the “Social Half hour”. That allows you to start the demo on-time. It’s now in ink, and you need 5 days notice if there’s a change in the date. Also, see how the inviting is going. Encourage her to over invite, and send the reminder postcards, etc. • Second call: 2 days before the Demo to see how everything is going. Remind her to call back the “Yes” & “Maybe” responses to remind her guests about the demo. And to tell her guests to bring a friend. BE ENTHUSIASTIC! Your excitement will motivate her. 9. Always invite every Hostess to join us as a Distributor. Use the Beauty Book to help tell the SeneGence opportunity story, and the Opportunity Brochure in the Pak. To make copies of the content materials of the Glamour Demo Hostess Pak, log in to your Back Office: Order >Supplies & Merchandise > Glamour Demo Hostess Pak. Partner for Profits In today’s busy world we often meet women who are on the run from morning to evening with work, kids, and social responsibilities. These women have many contacts. Our busy customers who know how to apply and love our products are the perfect prospects for “Partner for Profits”. Think of them as an ‘on-the-go-demo hostess’ with a streamlined demo agenda. Give her a Hostess Pak. Include many more customer receipts, additional Beauty Books, and several tester shades of LipSense along with glossy gloss sample sizes and lip applicators. ‘Partner for Profits’ with her. Coach her through getting excited about taking outside sales orders and let her earn products as outlined in the Hostess Appreciation Program. She will be happy to share LipSense and the other wonderful products in our line with her friends, peers, and coworkers… even if she can’t book and host a home or office demo. You’ll gain countless new customers and bookings as a result. Most of all, you’ll have a happy customer who sees how easy it is to share LipSense with others. Customer, Hostess or Distributor? Let her make the choice! They may also qualify to receive a SeneGift.

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SECTION VI: FORMS & PRINTED MATERIALS Terms of Application and Agreement SENEGENCE INTERNATIONAL, SGII, Inc. TERMS OF APPLICATION AND AGREEMENT Distributor and SeneGence International (SGII, Inc.), (hereinafter SeneGence) hereby agree to the following terms and conditions: 1. Legal Age. Distributor is of legal age to enter into this Application and Agreement (the “Agreement”) in the state in which Distributor resides. 2. Acceptance. This Agreement shall be effective upon acceptance by SeneGence at its place of business at Foothill Ranch, California, and shall be binding upon the parties and their heirs, successors and assigns. Distributor may buy products at wholesale from SeneGence. SeneGence reserves the right, in its sole discretion, to decline to accept any Agreement. Upon Company’s acceptance of this Agreement (which may be shown by initial shipment of product to Distributor), Distributor shall have the right to sell products and services to end use consumers and to participate in its Compensation Plan. Distributor is not required to make any product purchase. Distributor proclaims openly that neither he or she or his or her immediate partner or spouse has been party or participant to a SeneGence distributorship individually, in a partnership, in a trust, or as a shareholder, principal, officer, or director or a corporate distributorship in the past six months. Distributors in the same household or business shall have the same sponsor. Change of original sponsor is not permitted. 3. Term. Subject to the provisions of section 19, this Agreement shall have a term beginning on the date of acceptance by SeneGence and ending one year from the date thereof (the “Anniversary Date”) unless renewed by the Distributor prior to the Anniversary Date. If renewed, Distributor acknowledges that the Terms of Application and Agreement then in effect will be applicable to any such annual renewal period. An annual charge will be assessed and, if not paid directly by the Distributor, will be charged at the time of Distributor’s first order following each anniversary date, to cover the cost of newsletters, updates, promotions, and other miscellaneous costs. SeneGence, in its sole and unfettered discretion, with or without reason, shall have the right to refuse to renew this Agreement at any anniversary date. If the Agreement is not renewed, the Distributor understands that all right to the Distributor’s distributorship, overrides, bonuses and commissions and the ability to purchase products from SeneGence at wholesale prices shall terminate. The right to renew this Agreement is subject to the terms and provisions of the Terms of Application and Agreement, Distributor Policies & Procedures Guide and Compensation Plan in effect at the time of renewal, and as may be amended by SeneGence from time to time. 4. Independent Contractor Status. Distributor understands that Distributor is an independent contractor and not an employee, agent, or franchise, joint venture, partner or owner of SeneGence. Distributor shall be solely responsible for determining his/her hours and shall conduct the Distributor business without direction or control by SeneGence. Distributor shall not be treated as an employee, agent, franchisee, joint venture, partner or owner of SeneGence for federal or state tax purposes including with regard to the Internal Revenue Code, Social Security Act, Federal Unemployment Act, Federal Insurance Contributions Act (FICA), or with regard to workmen’s compensation, any state unemployment act, or any other federal, state or local statute, ordinance, rule or regulation. Distributor is responsible for all liability, health, disability and workmen’s compensation insurance. Distributor is not authorized to bind SeneGence to any agreement nor to incur any obligation on behalf of SeneGence.

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5. Suggested Retail Prices. SeneGence provides a reasonable suggested retail price for each of its products. The calculation of sales tax is based upon this suggested retail price. Distributor is not bound to offer or sell SeneGence products at the company’s suggested retail price and may establish such reasonable price as the Distributor shall determine. Distributor is prohibited from undertaking predatory pricing of SeneGence products. SeneGence will deem predatory pricing to have occurred if the offer or sale price of SeneGence products by Distributor is at less than Distributor’s wholesale cost plus freight and other out-of-pocket expenses relating to the wholesale purchase from SeneGence, and such expenses as are applicable to Distributor’s selling methods or venue (i.e. – trade show costs); plus a factor of 20% of the wholesale price, Distributor’s out-of-pocket costs, and other selling expenses. Additionally, and alternatively, an offer for sale or sale of SeneGence products at less than 85% of the suggested retail price will be presumed to be predatory pricing until demonstrated and documented by the Distributor to the contrary. 6. Responsibility for Taxes. Distributor is solely responsible for the payment of all applicable federal, state, and local income, unemployment, social security and other taxes and premiums and license requirements and fees attributable to the Distributor’s sales activities and earnings associated therewith. 7. Sales and Use Taxes. To ensure compliance with the sales and use tax law requirements of each state, unless otherwise mandated by state law, SeneGence shall collect and remit all applicable sales and use taxes on products based upon the suggested retail price of the product. The applicable rate of tax due shall be based on the address to which the product and/ or material is shipped. Distributor may file with SeneGence a copy of his/her sales tax license in their state of residence and thereby will not be required to submit sales taxes with wholesale product orders. 8. Compensation. Distributor will be compensated by SeneGence pursuant to the SeneGence Compensation Plan, which is incorporated herein by reference. Distributor understands that any compensation Distributor receives from SeneGence is related solely to the sale of products and services, and that there is no compensation for sponsoring. Distributor understands that Distributor is not guaranteed any income, profits or success and certifies that no such representations have been made to Distributor either by SeneGence or any Distributor. Distributor agrees that he/she will make no unreasonable, untrue, misleading, or unrepresentative earnings representations or income guarantees of any kind; nor will Distributor display any actual or photocopied commission checks in promotional materials, business opportunity advertising, or any other format or forum when presenting the Sales Compensation Plan to prospective Distributors. 9. Distribution. SeneGence reserves the right to limit the states, countries and territories where SeneGence products may be resold by Distributor and the means by which SeneGence products are offered and sold. Until further official notice from SeneGence, Distributor shall not sponsor, solicit or train other Distributors nor offer or sell SeneGence products outside the boundaries of the United States of America. No Distributor may sell product outside the Country or territory in which he/she is a registered Distributor. A Distributor may only be a registered SeneGence Distributor in one Country and/or territory at any given time. Further as and if SeneGence officially opens up new countries or territories for the sale of its products and sponsoring of prospective new distributors, existing Distributors are prohibited from soliciting, recruiting, training, signing or sponsoring new distributors until SeneGence has officially opened said country or territory and notified all Distributors of same. 10. Representations. Distributor shall make no statements, claims, representations, warranties, or disclosures with respect to SeneGence’s products or services, including but not limited to claims that company products cure or mitigate diseases or alter body functions, in promoting SeneGence, in sponsoring or training Distributors, or in selling SeneGence’s products and services, other than what is expressly permitted by the Distributor Policies and Procedures Guide and in other literature produced by SeneGence and approved for distribution. Any sales or

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recruiting materials produced by or for any Distributor must bear a special designation required by SeneGence, indicating prior review and approval by SeneGence. Distributor understands that no attorney general or other authority ever reviews, endorses or approves any product, compensation program or company, and will make no such claim. 11. Refunds. Distributor agrees to abide by SeneGence’s retail customer refund policy, as set forth in the Distributor Policies & Procedures Guide. Distributor acknowledges that he or she is eligible to receive a refund for commissioned products purchased by Distributor, returned in resalable condition, less a ten percent (10%) handling fee; if Distributor chooses to terminate the Agreement and return the products pursuant to the provisions of the Distributor Policies & Procedures Guide. Distributor agrees that the reasonable commercial terms for the re-purchase of marketable inventory upon Distributor’s termination shall be commissioned product purchased within twelve (12) months prior to termination, at not less than 90% of the Distributor’s original net cost, less appropriate setoffs and legal claims, if any. Upon termination Distributor may apply for refund following the procedures outlined by SeneGence in the Distributor Manual for such product purchased within 12 months prior thereto, less restocking fee. (GA-no time limitation; MA-no time limitation on wholesale product purchases made for commission qualification). Distributor shall bear the costs relating to the return of product. Any Distributors who received commission on the initial sale of such returned product must repay commissions originally paid such products returned to SeneGence. 12. Proprietary Rights/Use of Company Materials. Distributor acknowledges that solely SeneGence owns SeneGence’s trademarks, service marks, trade names, logos, artwork, and copyrighted materials, and that use of such marks and materials by Distributor must be in compliance with SeneGence’s written policies, as such may be amended by SeneGence from time-to-time. Distributor may not advertise on the Internet for other Distributors or for the offer and sale of SeneGence products except via an official approved website (SeneSite) and/or in compliance with the restrictions set forth in the Distributor Policies and Procedures Guide. Distributor agrees to use only written, recorded or other promotional or advertising materials, which have been issued by or approved in advance and in writing by SeneGence. Distributor further agrees that SeneGence has the exclusive proprietary interest in its Distributor lists, customer information developed by or for SeneGence (such as credit data, product purchase information and customer profile data), distributor lists, manufacturing procedures, formulas, source codes, product development and in all operating, financial and marketing materials; and that all such information is confidential. Distributor shall not use or disclose such information to any third party except in strict accordance with this Agreement and the Distributor Policies & Procedures Guide. Such confidential information is disclosed to Distributor on a “need to know” basis solely for use in Distributor’s business with SeneGence. Distributor agrees to use his or her best efforts to keep such information confidential. Distributor shall not use such information to sell products or services other than SeneGence’s products and services or in connection with any other business during the term of and after termination of this Agreement. Upon termination of this Agreement, Distributor immediately shall cease all use of SeneGence’s trademarks, service marks, logos, artwork and proprietary and confidential information and, if requested by SeneGence, return all such materials in Distributor’s possession to SeneGence. 13. Non-Solicitation. As an inducement for SeneGence to enter into this Agreement and in consideration of the mutual covenants contained herein, Distributor agrees that during the term of this Agreement and for a period of six (6) months thereafter, Distributor shall not, directly or indirectly on his or her own behalf or on the behalf of any other person or entity, solicit, induce or hire or attempt to solicit, induce or hire any Distributor, (except personally sponsored), employee, member, customer, supplier or vendor of SeneGence, to enter into any business relationship with any individual or company which is engaged in direct or network marketing sales or which sells products or services which compete with the products and/or services of SeneGence. Distributor acknowledges that SeneGence has a beneficial contract relationship with each of its Distributors and thus shall not, either during the term of this agreement nor at any time thereafter, attempt to induce any other Distributor to terminate or alter his or her business or independent contractor relationship with SeneGence.

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14. 70% Rule. By placing any product order, Distributor certifies that he/she has sold over 70% of all previous orders to his/her non-Distributor consumers. Distributor agrees to place primary emphasis upon selling of the Company products to ultimate consumers. Retail sales records shall be maintained and subject to review and verification upon Company request. Distributor residents in the States of Maine, North Dakota, Michigan, Indiana, Iowa, and West Virginia are limited to $495.00 in purchases as a Distributor from the Company during the first six (6) months of Distributor status. Permissible Distributor purchases shall be automatically modified to comply with the exemption requirements set forth in any State’s laws regulating business opportunities. 15. Training. In the event Distributor sponsors other Distributors, Distributor agrees to perform a bonafide supervisory, distributive and selling function in connection with the sale of SeneGence’s goods and services to the ultimate consumer. Distributor agrees to provide SeneGence, upon its request, evidence of the ongoing fulfillment of monthly supervisory responsibilities as evidenced by participation in one or more of the following: Personal contact, telephone communication, written communication, and attendance at Distributor meetings. 16. Sale of Other Products. Distributor is prohibited from selling or promoting any competing products or services or marketing programs to any of SeneGence’s Distributors or end consumers, except those distributors personally sponsored by Distributor. 17. Compliance. Distributor shall abide by all applicable federal, state and local laws or regulations, and the terms of this Agreement, the Compensation Plan and the terms of the Distributor Policies & Procedures Guide, as they may be amended from time to time by SeneGence. Distributors shall at all times act fairly and ethically in their dealings with actual and prospective SeneGence customers and Distributors, and shall undertake no acts or omissions designed to injure the reputation or business of SeneGence or any SeneGence Distributor. 18. Non Transferability or Assignability. Distributor understands and agrees that Distributor’s position can be inherited or bequeathed, but cannot be transferred or assigned, in whole or in part, during the Distributor’s lifetime without the express prior written approval of SeneGence, which approval may be withheld with or without reason or explanation, in the sole discretion of SeneGence. 19. Termination. (a) Distributor acknowledges that he or she is free to terminate this Agreement at any time and for any reason, upon written notice pursuant to paragraph 24 (below). (b) SeneGence may terminate this Agreement at any time upon thirty (30) days written notice for any reason, or for no reason. Six (6) months of continuous in-activity as a Distributor by virtue of non-ordering of the minimum monthly qualifying product order (as defined in the Distributor Policies and Procedure Guide) shall result in automatic termination of Distributor status. Immediately upon termination of this Agreement Distributor shall (a) lose all rights to purchase products from SeneGence at Distributor cost; (b) cease from representing himself or herself as a Distributor of SeneGence; (c) forfeit all rights to his/her participation and position in the Compensation Plan, including all future commissions and earnings resulting there from, which shall immediately terminate; (d) be prevented from soliciting, recruiting or sponsoring prospective SeneGence Distributors; and (e) take all other actions reasonably required by SeneGence relating to protection of SeneGence’s confidential information and intellectual property, including discontinuing the use of SeneGence’s trademarks and service marks, and ceasing all prohibited contact with SeneGence’s customers and Distributors. 20. Amendment. In order to maintain a viable Marketing Program and to comply with changes to federal, state and local laws or economic conditions, Distributor understands that SeneGence may amend this Agreement, the Distributor Policies & Procedures Guide, prices for product, company literature and/or the Compensation Plan at any time. Such modifications and all changes thereto, shall become a binding part of this agreement upon publication in the official

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SeneGence International Newsletter and/or Web site. In the event of any conflict between the terms of this Agreement, the Distributor Policies & Procedures Guide or any other document and such amendment, the amendment shall control. 21. Disputes. This Agreement is governed under the laws of the State of California. The parties agree that any claim, dispute or other difference between them shall be exclusively resolved pursuant to binding arbitration pursuant to the Commercial Arbitration Rules of the American Arbitration Association with arbitration to occur at Newport Beach Irvine, California (except to the extent that Court action is necessary to enforce SeneGence’s rights to injunctive relief under Section 27). Louisiana Distributors arbitrate at New Orleans, Louisiana. 22. Indemnification/Offset. Distributor agrees to indemnify and hold harmless SeneGence, its subsidiaries, affiliates, and their shareholders, officers, agents, employees and directors from and against any claim, demand, liability, loss, cost or expense, including, but not limited to, court costs or attorneys’ fees, asserted against or suffered or incurred by any of them by reason of, directly or indirectly, arising out of or in any way relating to or connected with, allegedly or otherwise, the Distributor’s: (a) activities as a Distributor; (b) breach of the terms of this Agreement; or (c) violation or a failure to comply with any applicable federal, state or local law or regulation. SeneGence shall have the right to offset any amounts owed by Distributor to SeneGence (including, without limitation, the repayment of commissions as a result of product returns) against the amount of any commissions or bonuses owed to the Distributor. 23. Liquidated Damages / Limitation of Damages. Distributor agrees that the liability of SeneGence, and its officers, directors and shareholders to Distributor for any claim whatsoever related to the relationship of SeneGence and Distributor, including any cause of action in contract, tort, or strict liability, shall not exceed, and be limited to, the amount of unsold product inventory owned by the Distributor, if any, and commissions at the time of the controversy or termination, if any, owed to the Distributor. In no event shall SeneGence be liable to Distributor for any incidental, special, exemplary, or consequential damages, or for any claim of future loss of earnings, profits of commissions, past the date the termination of Distributorship. 24. Notice. Any communication, notice, or demand of any kind whatsoever (except and in addition to as set forth in Section 20, above) which either party may be required or may desire to give to or to serve upon the other shall be in writing and delivered by 1. Electronic communication, ie facsimile or email, (if confirmed in writing and sent by one of the following methods as well) 2. Registered or certified mail, postage prepaid, return receipt requested, 3. Regular mail, postage prepaid (if accompanied by a declaration of proof of service by mail under penalty of perjury), or by 4. Personal service. Any party may change its address by written notice given to the other in the manner provided in this Section. Any such communication, notice or demand shall be deemed to have been duly given or served on the date personally served, if by personal service, on the date of confirmed dispatch if by electronic communication, or on the date shown on the return receipt or other evidence of delivery, if mailed by registered or certified mail, or five days after mailing if sent by regular mail. 25. Cumulative Remedies/Waiver. All rights, powers, and remedies given to SeneGence are cumulative, not exclusive and in addition to any and all other remedies provided by law. No failure or delay of SeneGence to exercise any power or right under this Agreement or to insist upon strict compliance by SeneGence with any obligation or provision, and in no custom or practice of the parties at variance with this Agreement shall constitute a waiver of SeneGence’s right to demand exact compliance therewith. Waiver by SeneGence can be effective only in writing by an authorized officer of SeneGence. The waiver by SeneGence of any particular default by Distributor shall not affect or impair SeneGence’s rights with respect to any subsequent default, nor shall it affect in any way the rights or obligations of any Distributor. 26. Release. To the extent permitted by law, SeneGence shall not be liable for and Distributor releases SeneGence from, and waives all claims for any loss of profits, indirect, direct, special or consequential damages or any other loss incurred or suffered by Distributor as a result of

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(a) the breach by SeneGence of the terms of this Agreement (b) the operation of Distributor’s business; (c) any incorrect or wrong data or information provided by SeneGence; or (d) the failure to provide any information or data necessary for Distributor to operate its business, including without limitation, the enrollment and acceptance of Distributor or the payment of commissions and bonuses. 27. Injunctive Relief. Distributor agrees that the remedy at law or in arbitration for any breach of any provision of this Agreement shall be inadequate and that, in addition to any other remedies it may have, SeneGence shall be entitled, without necessity of proving actual damages, to temporary and permanent injunctive relief to prevent the breach of any provisions of this Agreement. 28. Severability. If under any applicable and binding law or rule of any applicable jurisdiction, any provision of the Agreement or any specification, standard or operating procedure which SeneGence has prescribed is held to be invalid or unenforceable, SeneGence shall have the right to modify the invalid or unenforceable provision, specification, standard or operating procedure or any portion thereof to the extent required to be valid and enforceable. Distributor shall be bound by any such modification, which shall be effective only in the jurisdiction in which is required. 29. Survival. The covenants and obligations of Distributor to protect the trade Secrets, confidential information and intellectual property of the SeneGence, including, without limitation, those obligations and covenants contained in Sections 12, 13 and 19, shall survive termination of this Agreement. Further, Distributor’s obligations to indemnify SeneGence, and all related parties, as set forth in Section 22 above, shall survive the termination of this Agreement. 30. Reports and Fees. SeneGence will deduct a fee, plus postage, from commission checks for monthly down line genealogy reports requested by Distributor. Genealogy reports can be requested at any time during the month for the same rate. A $5.00 handling fee will also be deducted from each commission check or bonus check issued to a Distributor. Refer to the Distributor Policies and Procedures Guide. 31. Entire Agreement. This Agreement, the Distributor Policies & Procedures Guide, and the Compensation Plan (all of which are incorporated herein by reference), constitute the entire Agreement between Distributor & SeneGence, and no other promises, representations, guarantees, or agreements of any kind shall be valid unless in writing and signed by the Distributor and an authorized Officer of SeneGence. Independent Contractor Status Distributors of SeneGence are classified as independent Contractors for income tax purposes. As an Independent Contractor, you are not an employee of SeneGence International and we recommend that you take the following actions: • Open a separate checking account for your business. Deposit all monies received from your business into this account and pay all business expenses from it. • Set aside a portion of your earnings for taxes. As an Independent Contractor, you will not have withholdings deducted from your commissions. You may owe social security and income taxes that must be paid in April each year. • You may wish to seek tax assistance in preparing your income tax return. You will include your business operations as a separate schedule attached to your income tax return. • You may need to acquire a business license in the city in which you reside. If you have a resale certificate and wish to not pay the sales tax at the time of purchase, please fax a copy of the original to SeneCare at least twenty-four working hours prior to placing your opening order.

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You have the freedom to choose what hours you work as well as how and where you will sell the products and sponsor new Distributors. You will purchase products from SeneGence at a discounted price from the suggested retail price and sell them to your customers. The difference in price is your profit. Please refer to the discount schedule located on the Product Order Form. While SeneGence does not determine the price that you charge your customers, we do have general pricing guidelines that are outlined in the Distributor Policies and Procedures Manual. SeneGence does suggest that our Distributors adhere to the suggested retail prices for each product in our line. As an Independent Contractor you may be entitled to certain business tax deductions. Some of these deductions may include: • • • • • •

Car, Maintenance, and Gas Expenses Certain Business Supplies Expenses Travel Expenses Certain ‘Gift’ and Inventory Expenses Marketing and Sales Expenses Training and Education Expenses

Please seek counsel from a local tax expert to learn more about appropriate deductions and proper record keeping. Important Notice Regarding Self-Employment Tax For your convenience, included below is an Important Notice Regarding Self-Employment Tax: Please be aware of tax regulations regarding FORM 1099 and Independent Contractor status. As a SeneGence Independent Distributor, your income (which includes prizes, awards, and commissions) will be reported to the IRS via FORM 1099. It is important that you keep proper records for your SeneGence Business because it is your responsibility, as an Independent Contractor, to file appropriate taxes. 1. The IRS requires that corporations file a FORM 1099-MISC, Miscellaneous Income, for each person to whom it pays at least $600.00 in Nonemployee Compensation in a calendar year. This amount includes commissions earned and the fair market value of any prizes and awards received. This amount will be reported in Box 7, Nonemployee Compensation of FORM 1099-MISC. In addition in Box 9, the corporation is to report sales of at least $5,000.00 or more for a distributor of goods for resale to consumers. 2. Generally, amounts reported in Box 7 are subject to self-employment tax and recipients should report this amount on Schedule C, C-EZ, or F (Form 1040) and complete Schedule SE (Form 1040) Self-Employment Tax. 3. You will receive FORM 1099-MISC by January 31 instead of Form W-2 because you are considered an Independent Distributor and there was no income tax or social security and Medicare taxes withheld. 4. If your net income from self-employment is $400.00 or more, you must file a return and compute your SE (Self-Employment) tax on Schedule SE (Form 1040). 5. For more information, see Pub. 533, Self-Employment Tax. You can get general instructions from the IRS website at www.irs.gov or by calling 1-800-TAX-FORM (1-800-829-3676)

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Make Sense Foundation Donation Form

You can assist in the nurturing of a woman and her children, as well as develop a deep commitment towards social values such as kindness, generosity, personal responsibility and respect for others. We all believe these qualities are essential to leading humane and productive lives. Your donations offer the chance to make, ethical, social, and intellectual differences in our world. We invite you to open your heart to the possibilities. It only Makes Sense.

Yes, I want to join with The Make Sense Foundation and support this most worthy effort by helping to make a difference in the lives of women and children in crisis. (please select payment option and complete payment information below). I would like to make a one-time donation of $_________. (please complete payment information below). I would like to pledge $ ____________ per month. (Please complete the Distributor information and authorization below). I am currently donating a monthly amount from my SeneGence Commission Check, but would like to increase the amount by $_________ per month TOTALING $ _________ per month. (Please fill out your personal Distributor information below, to authorize your continuing contribution.) No Thank You. I am unable to make a pledge or donation at this time.

Please check one of the following payment options below for a one time donation.

Check (Please make check payable to: The Make Sense Foundation)

Mailing Address: The Make Sense Foundation c/o SeneGence International

Visa

19651 Alter Foothill Ranch, CA 92610

Cash (please accept my donation of $ ____________________)

Master Card

Name on Card______________________________________________________________________________________________ Card # ___ ___ ___ ___ / ___ ___ ___ ___ / ___ ___ ___ ___ / ___ ___ ___ ___

CVV code_________

Exp. Date ___ ___ / ___ ___ / ___ ___ Signature ____________________________________________________________________ Date ___ ___ / ___ ___ / ___ ___

Please fill out your personal Distributor information below, to authorize your continuing contribution. Name: ________________________________________________________________________ Dist. I.D.# ___________________ Address: ________________________________________________________ City, State, Zip____________________________ Phone: ___ ___ ___ – ___ ___ ___ – ___ ___ ___ ___

Email__________________________________________

I authorize and direct SeneGence International to deduct and forward to the MSF, the above pledged amount from my monthly commission earnings. I understand that these monthly deductions and contributions will continue until and unless I otherwise direct SeneGence International.

Signature ____________________________________________________________________ Date ___ ___ / ___ ___ / ___ ___ The Make Sense Foundation is a 501-(c)3 non-profit corporation and all contributions are tax deductible.

US040314

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SeneGence International 19651 Alter Foothill Ranch, CA 92610 SeneGence.com

SeneGence Distributor Handbook  

Signed up as a distributor? You may need this... SeneGence Distributor Handbook 60 pages www.lipsensei.com join my team http://bit.ly/Senege...

SeneGence Distributor Handbook  

Signed up as a distributor? You may need this... SeneGence Distributor Handbook 60 pages www.lipsensei.com join my team http://bit.ly/Senege...

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