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PRC PAC

MEMBERSHIP PROGRAM

 

 

POLICIES AND PROCEDURES

Revised

March 5, 2019

[/vc_column_text][vc_column_text] Be it known that PRC PAC is a Political Action Committee registered with the United States Federal Elections Commission under the name PRC PAC and with the identifying number: C00676262

For the purposes of this Agreement, all references to ‘the Company,’ ‘Primary the Ruling Class,’ ‘the Primary the Ruling Class Political Action Committee,’ ‘PrimaryTheRulingClass.com,’ ‘the Primary the Ruling Class Committee,’ ‘the Primary the Ruling Class Movement,’ ‘the PAC,’ ‘Members.PrimaryTheRulingClass.com,’ ‘PRC,’ or ‘PRC PAC’ shall all refer to the afore mentioned entity, PRC PAC.

As a Political Action Committee, PRC PAC is not a business in the legal sense, however, in order to facilitate fundraising the organization will market various merchandise and encourage rapid growth of the grassroots movement that constitutes the ideology behind the PAC. Like many Political Action Committees, PRC PAC will choose to pay various consultants for their efforts, aid, and advice to the cause. Because the overwhelming majority of contributions to PRC PAC are donations of less than $200, the size of the movement is integral to the success of the PAC. Therefore, PRC PAC has implemented a fundraising plan similar in nature to a Direct Selling or Network Marketing program. Although PRC PAC strives to maintain the same level of ethics and compliance as is required in a Direct Selling or Network Marketing program, there should be no confusion that PRC PAC is a Political Action Committee and subject to the laws and regulations enforced by the Federal Elections Committee.

All business terms used in this agreement are for convenience and do not in and of themselves indicate or reflect the nature of PRC PAC.

If any operational practices of PRC PAC are found to be in violation of local, state, or federal law PRC PAC will immediately modify such practices.

For the purposes of this Agreement, and unless discussing the specific merits of the differing membership ranks, the general use of the terms ‘IAM’ and Independent Affiliate Member’ shall refer to all levels of membership including IPM, IAM, and IAM(L).

 

SECTION 1 – WAIVER

1.1 Waiver

The Company never gives up its right to insist on compliance with its Agreements and with the applicable laws governing the conduct of a business. No failure of PRC PAC to exercise any right or power under the Agreement or to insist upon strict compliance by an Independent Affiliate Member (IAM) with any obligation or provision of the Agreement, and no custom or practice of the parties at variance with the terms of the Agreement, shall constitute a waiver of PRC PAC’s right to demand exact compliance with the Agreement. An authorized officer of PRC PAC can affect waiver by PRC PAC only in writing. PRC PAC’s waiver of any particular breach by an IAM shall not affect or impair PRC PAC’s rights with respect to any subsequent breach, nor shall it affect in any way the rights or obligations of any other IAM. Nor shall any delay or omission by PRC PAC to exercise any right arising from a breach affect or impair PRC PAC’s rights as to that or any subsequent breach.

The existence of any claim or cause of action of an IAM against PRC PAC shall not constitute a defense to PRC PAC’s enforcement of any term or provision of the Agreement.

The titles and headings to these policies are for reference purposes only, and do not constitute policy, and shall not be construed as substantive terms of these Policies.

PRC PAC reserves the right to amend the terms and conditions of these Policies and Procedures and the Marketing and Compensation Plan at any time, as deemed necessary without prior notice and, IAM agrees to abide by said changes or submit their resignation within ten (10) days of publication. Any Amendments will be binding on all IAMs upon notification of such amendments through any of PRC PAC’s official channels of communication, to include but not limited to, IAM e-mail blasts and postings to the PRC PAC Websites.

SECTION 2 – BECOMING AN IAM 2.1 Code of Ethics

I will deal with others honestly and fairly at all times.

I will be truthful in my representation of PRC PAC membership goals, benefits, and products without making exaggerated claims; clearly stating all terms of the sale.

I will be respectful of every person I meet while doing my PRC PAC business.

I will correctly represent the PRC PAC income potential represented therein. I understand that any misrepresentation could result in termination of my IAM status.

At all times, I will conduct myself and my business in an ethical, moral, legal and financially sound manner.     I will not engage in activities that would bring disrespect to PRC PAC, my independent involvement or, to myself.

 2.2 Requirements to Become an IAM

To become a PRC PAC IAM, each applicant must meet all of the following criteria:

  1. a. Be of legal age in his or her state of residence.
  2. b. Be a United States citizen or legal Permanent Resident.
  3. c. Possess a valid Social Security Number or Federal Tax ID number.
  4. d. Submit a properly executed IAM Application and Agreement to PRC PAC. Online Applications are accepted as originals. However, a signed application must be mailed or faxed to PRC PAC within 30 days of joining. Applications not received by the PRC PAC home office within 30 days will result in commission checks being held from the sponsoring IAM until it is received.
  5. e. All new members are required to purchase an electronic IAM Membership Kit.

The company reserves the right to reject any application to become an IAM or to reject the renewal of an existing IAM. This rejection could be due to violations of these Policies and Procedures.

2.3 IAM Benefits

Once PRC PAC has approved an IAM Application and Agreement, all benefits of the PRC PAC Membership and ‘Paid Positions’ Compensation Plan and the IAM Agreement are available to the new IAM. These benefits include the right to:

  1. a. Access and contribute to the PRC Deep-dive Political Research Archives.
  2. b. Access and participate in the Patriot Place private social media network and forums.
  3. c. Participate in the PRC PAC ‘Paid Positions’ Compensation Plan (receive bonuses and commissions, if qualified).
  4. d. Sponsor and enroll other individuals as IAMs (Independent Affiliate Members) into the PRC PAC team matrix and, thereby, build a team and progress through the levels of the PRC PAC ‘Paid Positions’ Compensation Plan.
  5. e. Receive periodic PRC PAC literature and other PRC PAC communications.
  6. f. Participate in PRC PAC sponsored events that include: support, training, motivation, and recognition functions, upon payment of appropriate fees, if applicable.
  7. g. Participate in promotional and incentive-based contests and programs sponsored by PRC PAC.

2.4 Renewal of Your PRC PAC Membership

The term of the IAM Agreement is month-to-month and is maintained by IAM’s monthly auto-donation. If the monthly dues (auto-donation) are not paid by the end of a ten-day grace period, the IAM will lose all rights under the IAM Agreement and the PRC PAC ‘Paid Positions’ Compensation Plan.

SECTION 3 – OPERATING A PRC PAC BUSINESS

3.1 Adherence to the PRC PAC ‘Paid Positions’ Compensation Plan

IAMs must adhere to the terms of the PRC PAC ‘Paid Positions’ Compensation Plan as set forth in these Policies and Procedures.       IAMs shall not offer the PRC PAC opportunity through, or in combination with, any other system, program, or method of marketing other than specifically stated in these Policies and Procedures. IAMs shall not require or encourage other current or prospective Customers or IAMs to participate in PRC PAC in any manner that varies from the program as set forth in these Policies and Procedures. IAMs shall not require or encourage other current or prospective Customers or IAMs to execute any agreement or contract other than PRC PAC agreements and contracts in order to become a PRC PAC IAM. IAMs shall NOT require or encourage current or prospective Customers or IAMs to make any purchase from, or payment to, any individual or other entity to participate in the PRC PAC ‘Paid Positions’ Compensation Plan other than those purchases or payments identified as recommended or required in these Policies and Procedures.

3.2 Advertising

3.2.1 In General

In the conduct of his or her business, the IAM shall safeguard and promote the reputation of PRC PAC and its products and services. The marketing and promotion of PRC PAC, the PRC PAC opportunity, the PRC PAC ‘Paid Positions’ Compensation Plan, PRC PAC products and services shall be consistent with the public interest, and will avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices at all times.

To promote the products, membership, services and opportunities PRC PAC offers, IAMs must only use the sales aids and support materials produced and or approved by PRC PAC. PRC PAC has carefully designed its products, product labels, PRC PAC ‘Paid Positions’ Compensation Plan and promotional materials and checked them for Legal Compliance. This is done to ensure that each aspect of PRC PAC is fair, standard throughout, truthful, substantiated, and complies with the vast and complex legal requirements of Federal, State and Local laws.

For this reason, IAMs are strictly prohibited from developing their own sales aids, promotional materials and other literature without the express written consent of PRC PAC. IAMs agree to use all promotional materials and other literature for IAM training purpose only, not for public use.

3.2.2. Trademarks and Copyrights

The name of PRC PAC and other names as adopted by PRC PAC are proprietary trade names, trademarks and service marks of PRC PAC. These marks are supplied to IAMs for use only in an expressly authorized manner. Use of the PRC PAC name on any item not produced by the company is prohibited except printed as follows:

  1. a. [IAM’s Personal or Business Name], an Independent Affiliate Member of PRC PAC
  2. b. PRC PAC Independent Affiliate Member (as applicable by Rank)
  3. PRC PAC Independent Participating Member (as applicable by Rank)

IAMs may also list themselves as an “Independent Affiliate Member of PRC PAC” in the white or yellow pages of a telephone directory, or its electronic equivalent, under their name or their DBA (Doing Business As) name only. No IAM will place telephone directory display ads using PRC PAC’s name or logo. Said policy also applies to the Internet.

IAMs shall not answer the telephone: “PRC PAC,” “PRC PAC Incorporated” or in any manner leading the caller to believe he or she reached the corporate offices of PRC PAC.

IAMs shall not use PRC PAC’s trade name or any of its trademarks on their business or personal checking accounts. IAMs may imprint business checks as being an “Independent Affiliate Member of PRC PAC.”

IAMs are not permitted to “create” their own business card or letterhead graphics if PRC PAC trade name and or trademarks are used. Only approved PRC PAC graphics versions and wording are permitted. Letterhead must be ordered from PRC PAC’s licensed independent contractor; or it must be produced using PRC PAC’s graphics “slick” for business cards and stationary as supplied by PRC PAC, to include the words “Independent Affiliate Member” on stationery and business cards. IAMs may indicate their PRC PAC cell rank title under their name; however, must still indicate “Independent Affiliate Member.” PRC PAC’s marketing alliances may not be listed on any business cards or stationary. These policies also apply to any signage produced by IAMs.

IAMs may not produce for sale any recorded company events or speeches without specific prior written consent from PRC PAC. IAMs shall not reproduce for sale, distribution or for personal use any recording of company-produced audio or video taped presentations, and may only freely share such presentations as are posted by PRC PAC on the public (non-membership) pages of its websites.

3.2.3 Media and Media Inquiries

IAMs are prohibited from responding to media inquiries regarding PRC PAC, its products or services, membership, political strategy and tactics, or their participation in the PRC PAC ‘Paid Positions’ Compensation Plan. All inquiries by any media must immediately be referred to PRC PAC’s Compliance Department. PRC PAC employs a professional staff responsible for replying to these inquiries. This policy assures accurate and consistent information to the public.

3.2.4 Enrolling Materials

IAMs may place advertisements or promotional materials for the purpose of enrolling new IAMs and Customers. Said materials are limited to advertisements for selling products or services and enrolling, including          advertisements, voice messages, Fax-on-Demand, signage, printed correspondence, and electronic distribution. Before any such material can be used, it must be submitted for written approval to PRC PAC.

Enrolling material shall not contain misleading, unethical or exaggerated information and must specifically adhere to the guidelines set forth in Section 3.2.5. All materials are in constant review by PRC PAC’s Legal and Compliance Departments, as well as Federal and State regulatory agencies. Violation of any of PRC PAC’s guidelines will result in disciplinary action.

Advertisements must be placed in the appropriate sections of all media. Advertisements shall not be placed under any heading that indicates they are for employment. In addition to not using income claims, advertisements should be clear that commissions are paid on donations raised, not enrollments, and ads shall never indicate large earnings are easy. It must be clear that income is directly proportionate to effort.

3.2.5 Advertising Guidelines

The following guidelines will be followed by IAMs to protect the PRC PAC opportunity. These guidelines assist in preparing material and are in addition to guidelines expressed elsewhere in these Policies and Procedures. These guidelines pertain to all advertising, including “blind ads” (ads that do not specifically mention PRC PAC). Fraudulent inducement in ads will not be tolerated by PRC PAC and will be cause for immediate suspension and or termination.

IAMs shall refrain from directly or indirectly:

Representing the capability of IAMs in multilevel or network marketing businesses, including, but not limited to the PRC PAC ‘Paid Positions’ Compensation Plan, to make a profit, without simultaneously disclosing and presenting:

  • The Income Disclosure Statement; and,
  • That not all IAMs can make money in PRC PAC; and,
  • That no one can be guaranteed success as a PRC PAC IAM.

IAMs must not misrepresent the income levels, earnings, product and membership sales, profits or payments that a person may reasonably expect to earn, generate, or receive as a PRC PAC IAM.

IAMS shall not represent the opportunity to participate in the PRC PAC ‘Paid Positions’ program as employment or as a salaried position with guaranteed income. PRC PAC will enforce the following policies concerning advertising set forth as follows:

  • PRC PAC IAMs are independent contractors and all incomes are a result of personal effort. Any and all advertisements must be factual. The stating of any exaggerated claims or misleading information will jeopardize an IAM’s distributorship. If income of any kind is mentioned in an advertisement, it must represent actual income earned and it must include the word “commissions” so that it is not interpreted as any form of guaranteed income; verbiage such as “I earned (documented income) in commissions last month” may be used if documented, but terms implying consistent income such as “monthly” or “yearly” may not be included unless this consistency is documented; and if income is included, terms such as “possible” or “potential” may not be used as these terms infer a potential for salaried earnings.
  • Any advertising which promotes, represents or implies salaried positions, management positions, hourly wages, full or part-time, or guaranteed incomes is considered misleading and is prohibited. The PRC PAC opportunity is not a job and may not be presented as such. Terms such as “manager trainee,” “management positions available,” “travel provided,” “call for interview,” “positions available,” “now hiring,” and other misleading statements are not allowed as these imply employment. PRC PAC IAMs are independent contractors and advertising or communication otherwise is a violation of the PRC PAC IAM Agreement.

In addition, IAMs must not:

  • Misrepresent the capabilities of any PRC PAC membership, service, or product.
  • Misrepresent the nature, validity or status of any testing of a PRC PAC product or the meaning or status of any government approval or regulation.
  • Allow or condone, by action or by words, the use, production, marketing or distribution, by sale or otherwise, of IAM produced sales aids.
  • Falsely represent that an IAM is employed by PRC PAC in order to aid that IAM to obtain credit.
  • Run any advertising that may include income claims without displaying the Income Disclosure Statement at the same time.

The names of any of PRC PAC’s marketing alliances may not be used specifically in any ad.

  • Copying of any company-produced materials (brochures, tapes, and catalogs) without prior written approval from PRC PAC is prohibited.
  • Reproduction of previously published articles or books is prohibited.
  • Stating IAMs are financial partners with PRC PAC or any of PRC PAC’s marketing alliances is prohibited.
  • The following phrases cannot be used when describing the PRC PAC opportunity in ads or elsewhere:
  • “Investment”
  • “Retirement Plan” § “Business Model”
  • “Business Opportunity”
  • “Return on Investment” “ROI”
  • Products or Services not currently offered by PRC PAC cannot be promoted or marketed by any IAM without previous written permission from PRC PAC.
  • Advertising on radio or television by an IAM is prohibited without written authorization from the Company.
  • IAMs will not use the name “PRC PAC” in any advertisement without simultaneously and conspicuously also having, “[IAM Name/DBA], An Independent Affiliate Member of PRC PAC.”
  • Advertisements may not be placed in commercial or retail establishments.

Note: Many states have “Business Opportunity” laws that have specific and legal connotations, unrelated to what our IAMs talk about when referring to PRC PAC as a “business opportunity.” To avoid confusion, PRC PAC asks its IAMs not to refer to PRC PAC as a “Business Opportunity.” You may say it is a home-based business or a “great opportunity.”

3.2.6 Sample Ads and Phrases

The guidelines expressed in Section 3.2.5 were established to protect the opportunity for all IAMs. They are not meant to restrain the IAM from conducting his or her business in a fair, truthful and profitable manner. Because the majority of the above guidelines represent policies and procedures that prohibit certain actions, PRC PAC has developed some examples of phrases and advertisements that may be used by IAMs if desired. These suggestions are available on the PRC PAC websites and are constantly updated to ensure IAMs are in compliance with Federal, State and Local regulations. The only locations for “approved” advertising examples are here and on the PRC PAC websites.

This sample list includes complete classified ads that must be used in their entirety with the only exception being your contact information. The list includes phrases that have specified limited use. Any violation of the approved use of these sample ads or phrases will result in disciplinary action, up to and including termination.

Corporate Approved Ads

The following ads are some ads that may be used in any type of Ad Program or Marketing campaign. You must use “car program” or “car incentive” when speaking of the car allowance, not “free car”. You CANNOT insinuate that this is for a job in any way.

  • INTERNET/E-commerce self-employment opportunity.
  • WAITING FOR THE RIGHT PRODUCT? MONEY? OPPORTUNITY?
  • ARE YOU: Serious? Hungry? Teachable?
  • Internet Marketing.
  • LIFE IF TOO SHORT! If you are not making as much as you would like, call me.
  • Sales/Marketing Co. Expanding, Seeking top level people will train, commission only sales. Serious inquiries only.
  • Next Generation Online/Offline Marketing proven. Serious inquires only.
  • Realtors: You are only as good as your last sale. Tired of starting over? Want steady work and remuneration?
  • Second Income: Create a second income that can Exceed your first.
  • Insurance Agents: Not earning enough recurring income? Work in your field with greater rewards, Call now.
  • White Collar Blues? Ready for a Change?
  • Ambitious? Work for yourself for once. Network. We train, serious inquires only.
  • Taxes out of control? Own your own business and save. Serious inquiries only.
  • Network Marketers – See where the top guns are going. Call now.
  • Squeezed out of a job? Start your own business. Serious inquiries only.
  • Rich Dad Poor Dad readers. Get in the recommended arena. Call now.
  • LAYOFFS – They come and they go. Stop being a corporate yo-yo, work for yourself.
  • Looking for Options? Career-Education-Family-Vacation/Leisure-Financial. Find yours today.
  • WILL YOUR JOB Provide the lifestyle you really want? Discover a different way with your own business.

3.2.7 PRC PAC. Event System

The following event system has been set in place by the company regulatory advisors and management team and will be followed. This system is designed to bring the training to IAMs in their geographical area versus traveling long distances. This event system shall not be altered or changed by any IAM.

PRC PAC Sponsored Event – This event is sponsored by PRC PAC, not by the IAMs. This event addresses regulatory issues, advanced training, membership training, and self-improvement trainings. Regional Trainers are appointed by Corporate, based on, but not limited to success in corporate America, a history of success in organization building, participation in the PRC PAC sponsored leadership programs, meetings, events, conference training calls, leadership and speaking skills, compliance of Policies and Procedures and PRC PAC established event systems.

National Events – Up to two time annually. Location and cost will vary.

Regional Events – Will be announced periodically and will be membership-based trainings, new program announcements and a time for additional PRC PAC excitement and political education.

The guidelines for the Event System are mandatory. This is a Company established Event System. No events other than those listed, no events with charges that vary from those listed, may be conducted without prior written consent from PRC PAC. The speaker line-up and agenda must be approved by PRC PAC.

3.3 Changes to the PRC PAC Business

3.3.1 In General

Each IAM will immediately notify PRC PAC of any changes to the information contained on the IAM’s Application and Agreement. IAMs may modify their existing IAM Agreement, i.e., change Social Security Number to Federal ID Number, or change the form of ownership from an individual proprietorship to a business entity owned by the IAM, by submitting a written request, a properly executed IAM Application and Agreement, and appropriate supporting documentation. If the form of the business is changed from a sole proprietorship to a corporation, partnership or trust, the original IAM must submit a Corporation, Partnership, Trust or DBA Form, a copy of the Articles of

Incorporation or a copy of the FEIN number issued by the IRS, along with the notification advising the company of said change.

3.3.2 Addition of CoApplicants

When adding a co-applicant, either an individual or a business entity, to an existing PRC PAC business, the Company requires both a written request, as well as a completed IAM Application and Agreement, containing the applicant’s and co-applicant’s Social Security Numbers or Federal ID Numbers, if applicable, and signatures. To prevent the circumvention of the section herein regarding transfers and assignments of PRC PAC business, the original applicant must remain as a party to the original IAM Application and Agreement. The original IAM may not terminate his or her relationship with the Company unless the IAM Agreement, and the PRC PAC membership, is terminated in its entirety. If the original IAM chooses termination of his or her relationship with the Company, he or she must transfer or assign his or her business in accordance with these Policies & Procedures. All bonus and commission checks will be sent to the address of record of the original IAM.

3.3.3 Change of Sponsor & Placement

To protect the integrity of all marketing organizations and safeguard the hard work of all IAMs, PRC PAC strongly discourages changes in sponsorship. Maintaining the integrity of sponsorship is critical for the success of every IAM and marketing organization. The transfer of a PRC PAC business from one sponsor to another is rarely permitted. Requests for change of sponsorship must be submitted in writing to the Compliance Department and must include the reason for the transfer. Transfers will be considered only in the following two (2) Circumstances:

  1. a. In cases involving fraudulent inducement or unethical sponsoring, an IAM may request that he or she be transferred to another organization with his or her entire marketing organization intact. All requests for transfer alleging fraudulent enrollment practices shall be evaluated on a case-by-case basis, with PRC PAC having the final decision whether such infraction occurred.
  2. b. In cases where the enrolling IAM accidentally places the newly sponsored person in the incorrect position. These changes must be approved by the Compliance Department and MUST be requested within seven (7) days of the enrollment.

The IAM seeking to transfer must submit a properly completed and fully executed Sponsorship Transfer Form from the PRC PAC website or PRC PAC offices and email it to: bill@PrimaryTheRulingClass.com to the attention of the Compliance Department, and if so directed by Compliance, must include the written approval of seven direct upline Active IAMs along with the Sponsor’s signature (All signatures must be notarized). If the transferring IAM wants to move any of the IAMs in his or her marketing organization, each downline IAM also must complete a Sponsorship Transfer Form and return it to PRC PAC. Downline IAMs will not be moved with the transferring IAM unless all requirements are met. Transferring IAMs must allow thirty (30) days after the receipt of the Sponsorship Transfer Forms by PRC PAC for processing and verifying change requests. Final approval rests with PRC PAC.

3.3.4 Cancellation, Termination and ReApplication

An IAM may legitimately change organizations by voluntarily canceling or terminating his or her PRC PAC business, see Section 10.4 and remaining inactive for six (6) calendar months. Following the six-month period after cancellation or termination, the former IAM may re-apply under a new Sponsor and new organizational leg.

3.4 Unauthorized Claims by IAM

3.4.1 Indemnification

An IAM is fully responsible for all of his or her verbal and written statements made regarding PRC PAC products and services, and the PRC PAC ‘Paid Positions’ Compensation Plan which are not expressly contained in current, official PRC PAC materials. IAMs agree to indemnify PRC PAC and hold it harmless from any and all liability including judgments, civil penalties, refunds, attorney fees, court costs or lost business incurred by PRC PAC as a result of the IAMs unauthorized representations. PRC PAC Certified Trainers have the right to attend any PRC PAC related meeting at no charge as an ongoing responsibility of the Certified Trainer Program.

3.4.2 Product Claims

No membership claims may be made except those contained in current PRC PAC literature. No claims as to political influence, access, or insider knowledge may be made except those contained in current, official PRC PAC literature which are thoroughly sourced. Such claims are a violation of PRC PAC policies, and Federal, State, and local law.

3.4.3 Income Claims

In every meeting with a potential IAM regarding participation in the PRC PAC ‘Paid Positions’ Compensation Plan, an Income Disclosure Statement must be presented and reviewed by the potential IAM.    In their enthusiasm to enroll Prospective IAMs, some IAMs occasionally are tempted to make income claims or earnings representations to demonstrate the inherent power of the PRC ‘Paid Positions’ Compensation Plan. This is counterproductive, as new IAMs become disappointed very quickly if their results are not as extensive or as rapid as the results others have achieved. At PRC PAC, we firmly believe that the PRC PAC income potential and compensation plan is great enough to be highly attractive, without reporting the earnings of others. Moreover, the Federal Trade Commission and various states have laws or regulations governing or prohibiting various types of income and testimonials by persons engaged in similar types of organization-building incentive programs. Hypothetical income examples used to explain the operation of the PRC PAC ‘Paid Positions’ Compensation Plan, which are based on mathematical projections, may be made to prospective IAMs, provided the IAM who uses such hypothetical examples makes clear to the prospective IAM(s) such earnings are hypothetical (and the Income Disclosure Statement is concurrently presented). A disclaimer such as: “Any earnings or success you achieve will vary according to the geographical location, time and effort applied to your particular business, and is not guaranteed by PRC PAC, its management, staff or IAMs is acceptable.

3.5 Commercial Outlets

PRC PAC strongly encourages the solicitation of donations and memberships through person-to-person contact. In an effort to reinforce this method of marketing and to help provide a standard of fairness for its IAM base, IAMs may not display or sell PRC PAC products, services, memberships or literature in any retail establishment (the Internet is considered a retail outlet) without prior specific written consent from PRC PAC. However, it is permissible to promote and take orders for PRC PAC donations and memberships in professional services offices or similar non-retail establishments.

3.5.1 Trade Shows and Expositions

IAMs may display and or sell PRC PAC membership opportunities at trade shows and professional expositions; however, the professional image of PRC PAC must be considered. Please see the section regarding advertising for policies regarding advertising of, or at, said events.

3.6 Conflict of Interest

3.6.1 Unauthorized Recruiting and Sales

IAMs are expressly prohibited from unauthorized recruiting, which includes the following:

  • Actual or attempted recruitment or enrollment of PRC PAC Customers or IAMs for any multilevel marketing business ventures or political organizations, either directly or through a third party. This includes, but is not limited to, presenting or assisting in the presentation of multilevel marketing business ventures.
  • Producing any literature, tapes or promotional material of any nature for another multilevel marketing business or political organization which is used by the IAM or any third person to recruit PRC PAC Customers or IAMs for that organization.
  • Selling, offering to sell or promoting non-PRC PAC products or services to PRC PAC Customers or IAMs. Any product or service in the same generic category as a PRC PAC product, membership or service is deemed to be competing.
  • Offering any non-PRC PAC products, services, memberships or business plan (by themselves or in conjunction with any PRC PAC products) at any PRC PAC meeting, seminar, lunch, convention or other PRC PAC function.

3.6.2 Nonsolicitation of PRC PAC IAMs and Customers

For a period of one year after the cancellation (cancellation may be either voluntary, involuntary, through non-renewal, inactivity or termination) of an individual or entity’s IAM Agreement, the ex-IAM shall not directly or through a third party solicit any PRC PAC IAM or Customer for any other direct sales, network marketing, multilevel marketing, or grassroots political program or opportunity.                                                                                                                                 This provision shall survive the termination or cancellation of the IAMs Agreement. If the solicitation of the IAM or Customer is performed by a third party outside the IAM Agreement, PRC PAC will undertake any and all legal actions necessary to be compensated for the irreparable harm caused by the unauthorized solicitation.

3.6.3 Genealogies and Downline Activity Reports

All Genealogies and Downline Activity Reports are confidential and constitute proprietary information of PRC PAC. Genealogies and Downline Activity Reports are provided to active IAMs only in the strictest confidence. These reports are available to IAMs for the sole purpose of assisting IAMs and their respective downline organizations in the development of their PRC PAC teams. IAMs will use these reports to manage, motivate, and train their downline IAMs. During the term of an IAM Agreement and for a period of one year after the termination or expiration of the IAM Agreement, for any reason whatsoever, the IAM shall not, on his or her own behalf, or on behalf of any person, partnership, association, corporation or other entity:

  • Directly or indirectly disclose any information contained in any Genealogy or Downline Activity Report to any third party.
  • Use the information to compete with PRC PAC.
  • Recruit or solicit any IAM or Customer of PRC PAC listed on any report or in any manner attempt to influence or induce any IAM or Customer of PRC PAC to alter their business relationship with PRC PAC.
  • Use or disclose to any person, partnership, association, corporation or other entity any information contained in any Genealogy or Downline Activity Report. Conflict of Interest provisions shall survive the cancellation or termination of this Agreement. Upon demand by the Company, any current or former IAM will return the original and all copies of Genealogies or Downline Activity Reports to the Company, representing that any and all copies have been returned. Any violation of Section 3.6.3 will result in termination.

3.7 Corporations, Partnerships and Trusts

A corporation, partnership or business trust (collectively referred to in this section as an “Entity”) may apply to be a PRC PAC IAM (if permitted by current FEC regulations) by submitting its Certificate of Incorporation, Partnership Agreement or Trust documents (these documents are collectively referred to as the “Entity Documents”) to PRC PAC, to include a properly completed Corporation, Partnership, Trust or DBA Form, and an IAM Application and Agreement. A PRC PAC business may change its status under the same Sponsor from an individual to a Partnership, Corporation or Trust or from one type of Entity to another. The IAM(s) must provide the Entity Documents and submit a properly completed Corporation, Partnership, Trust or DBA Form to PRC PAC. The Corporation, Partnership, Trust or DBA form must be signed by all of the shareholders, partners or trustees. Members of the Entity are jointly and severally liable for any indebtedness or other obligation to PRC PAC. It is the responsibility of those persons involved in the Entity to conform to the laws of the State in which their entity is formed pertaining to the corporate, partnership or business trusts.

All commission and bonus checks will be made out to the legal name of the business entity. When required, an FEIN must accompany the entity filing and name change with PRC PAC.

3.8 Cross-Line Sponsoring

“Cross-line sponsoring” is defined as the enrollment of an individual or Entity that already has a current IAM Agreement on file with PRC PAC, or who had such an agreement within the preceding six calendar months, within a different line of sponsorship. Actual or attempted cross-group sponsoring is strictly prohibited. The use of a spouse or relative’s name, trade names, DBAs, assumed names, corporations, partnerships, trusts, Federal ID Numbers, or fictitious ID numbers to circumvent this policy is absolutely prohibited. IAMs may not demean, discredit or invalidate other PRC PAC IAMs in an attempt to entice another IAM to become part of the first IAMs marketing organization. This policy shall not prohibit the transfer of a PRC PAC business in accordance with the appropriate section within these Policies & Procedures.

3.9 Errors or Questions

In the event an IAM has questions about, or believes any errors have been made regarding commissions, bonuses, downline activity reports, auto-donations or charges, the IAMs must notify PRC PAC within thirty (30) days of the date of the purported error or incident in question. PRC PAC will not be responsible for any errors, omissions or problems after thirty (30) days.

3.10 Excess Inventory Purchases Prohibited

IAMs are not required to carry inventory of products or sales aids. PRC PAC ships product directly to the end consumer. PRC PAC does not permit more than one (1) membership that pays a fast start commission to be sold to a new IAM.

3.11 Governmental Approval or Endorsement

No Federal, State or Local regulatory agencies or officials approve or endorse any Political Action Committees, Political Unions, direct selling or network marketing companies or programs. IAMs shall not represent or imply PRC PAC or its PRC PAC ‘Paid Positions’ Compensation Plan have been “approved,” “endorsed” or otherwise sanctioned by any government agency.

3.12 Holding Applications or Orders

IAMs must not manipulate enrollments of new applicants and purchases of products. All IAM Applications and product orders must be sent to PRC PAC within 24 hours from the time they are executed.

3.13 Identification

All IAMs will provide their Social Security Number or Federal Taxpayer Identification number to PRC PAC on the IAM Application and Agreement. Upon enrollment, the company will provide a unique IAM Identification Number to the IAM for identification. This number is used to place orders and track commissions and bonuses. Commission checks will not be sent to any IAM with a missing or invalid Security Number or Federal Taxpayer Identification number.

3.14 Income Taxes

PRC PAC provides an IRS Form 1099 MISC. (Non-employee Compensation) earnings statement to each IAM who falls into one of the following categories:

  • Had earnings of over $600 in the previous calendar year.
  • Made purchases during the previous calendar year in excess of $5,000.

An IAM is responsible for paying Local, State, and Federal taxes on income generated as an IAM. If an IAM is tax exempt, the exempt Federal Tax Identification Number must be provided to PRC PAC.

3.15 Independent Contractor Status

IAMs are independent contractors and are not purchasers of a franchise or a business opportunity. The agreement between PRC PAC and its IAMs does not create an employer/employee relationship, agency, partnership or joint venture between the Company and the IAM. IAMs shall not be treated as employees for their services or for Federal, State or Local tax purposes. All IAMs are responsible for paying any applicable taxes due from all compensation earned as an IAM. An IAM has no authority (expressed or implied) to bind the company to any obligation. Each IAM is encouraged to establish his or her own goals, hours and methods of promotion, providing he or she complies with the terms of the IAM Agreement, Policies and Procedures and any applicable laws.

3.16 Insurance

Insurance (liability, business, or other) is not a requirement to be an IAM, however, it is strongly suggested that as an IAM’s business grows, that the IAM contact their insurance provider to determine whether their coverage is adequate.

3.16.1 Business Pursuit Coverage

IAMs may arrange for adequate insurance for their business. Homeowner’s insurance policies do not cover business-related injuries, the theft of or damage to product inventory or business equipment. Most times, coverage can often be accomplished with a simple “Business Pursuit” endorsement attached to your present homeowner’s policy. Again, please contact your insurance provider for more detailed information.

3.16.2 Product Liability Coverage

PRC PAC, in alliance with its vendors, maintains liability insurance to protect the Company and IAMs against product liability claims, but this does not cover deliberate misrepresentations by the IAMs.

3.17 International Marketing

Because of United States Federal Elections Commission regulations, including, only citizens of the United States or legal Permanent Residents are eligible for membership or may in any manner donate to PRC PAC. Because merchandise purchases are considered donations, this prohibition also applies to all transactions in the PRC Store. IAMs are authorized to promote PRC PAC products and services, and enroll Customers or IAMs only in the United States. PRC PAC products cannot be shipped into or sold in any foreign country for the purpose of resale, but may, subject to import laws of that country, be sold for personal use only. No IAM may sell, give, transfer, import, export or distribute PRC PAC products or sales aids in any unauthorized country.                                                      No IAM may, in any unauthorized country:

  • Conduct sales, enrollment or training meetings
  • Enroll or attempt to enroll potential Customers or IAMs
  • Conduct any other activity for the purpose of selling PRC PAC products, services or establishing a membership organization, or promoting the PRC PAC program.

3.18 Laws and Ordinances

3.18.1 Compliance with Federal, State, and Local Laws

IAMs shall comply with all Federal, State and Local laws in the conduct of their business. The violation or attempted violation of any such law or regulation, or fraudulent or deceptive conduct, shall be grounds for disciplinary action by PRC PAC.

Although there are thousands of governing laws and statutes on the books in the numerous jurisdictions in which PRC PAC IAMs operate, there is one critical and relatively new federal law which requires specific publication in these Policies and Procedures: The FTC Do Not Call

Registry. The penalties are significant ($10,000 for each occurrence) and the statute also covers fax numbers, if registered. To quote from the FTC’s website:

Q: Who is covered by the National Do Not Call Registry?

A: The National Do Not Call Registry applies to any plan, program or campaign to sell goods or services through interstate phone calls. This includes telemarketers who solicit consumers, often on behalf of third-party sellers. It also includes sellers who provide, offer to provide, or arrange to provide goods or services to consumers in exchange for payment.

Q: What about an established business relationship?

A: A telemarketer or seller may call a consumer with whom it has an established business relationship for up to 18 months after the consumer’s last purchase, delivery, or payment -even if the consumer’s number is on the National Do Not Call Registry. In addition, a company may call a consumer for up to three months after the consumer makes an inquiry or submits an application to the company. And if a consumer has given a company written permission, the company may call even if the consumer’s number is on the National Do Not Call Registry.

One caveat: If a consumer asks a company not to call, the company may not call, even if there is an established business relationship. Indeed, a company may not call a consumer -regardless of whether the consumer’s number is on the registry – if the consumer has asked to be put on the company’s own Do Not Call list.

Q: How will I access the National Do Not Call Registry?

A: Online at www.telemarketing.donotcall.gov

3.18.2 Home Based Business Statutes

Many cities and counties have laws regulating certain home-based businesses. IAMs must obey any applicable laws. If a city or county official notifies an IAM an ordinance applies to him or her, the IAM will be cooperative and immediately send a copy of the ordinance to the Compliance Department of PRC PAC.

3.19 Minors

A Minor is a person who is not of legal age (as recognized by the state or province in which they reside) to enter a legal and binding contract. Minors are, therefore, ineligible to participate as an IAM, regardless of an adult with legal guardianship granting permission.

3.20 One PRC PAC Business

An IAM may operate or have an ownership interest, legal or equitable, in only one PRC PAC business. No individual may have, operate or receive compensation from more than one PRC PAC business. The IAM Agreement is voided by PRC PAC if the IAM or the family unit to which the IAM belongs has previously signed an IAM Agreement, unless the prior agreement expired or was terminated at least 6 calendar months prior thereto, or the Agreement represents the exception in Section 3.21.1.

3.20.1 Married Couple Exception

The exceptions to the one business rule pertain to married couples and “life partners,” who may maintain a separate IAM status. This exception only applies when one of the parties is in the direct line of sponsorship of the other. Both parties must be sponsored by the same IAM that enrolled the first party A spouse (or life partner) may be directly placed under the other; however, one spouse (or life partner) cannot sponsor the other. Both parties must complete an IAM Agreement and both are then individually bound to the Policies and Procedures. See Section 3.24

3.20.2 If IAMs Marry

Two possibilities exist regarding a PRC PAC business when two IAMs marry. Because of the marriage, the six-month waiting period explained in Section 3.3.4 may be waived with upline approval. The possibilities include:

  • They may maintain their current distributorships. If one spouse is the Sponsor of the other, the Sponsor must be changed to the same IAM that sponsored the first. Both spouses must be sponsored by the same IAM that enrolled the first spouse so long as both are PRC PAC IAMs and neither belongs to any other network marketing or multilevel company.
  • One spouse may terminate or sell his or her PRC PAC business and become a co-applicant with the other. See Section 3.23 regarding the sale of a PRC PAC business.

3.20.3 Actions of Household Members or Affiliated Individuals

If any member of an IAM’s immediate household engages in any activity, which, if performed by the IAM, would violate any provision of the Agreement, such activity will be deemed a violation by the IAM. PRC PAC will take disciplinary action pursuant to the Policies and Procedures against the IAM. If any individual associated in any way with a Corporation, Partnership, Trust or other Entity (collectively “affiliated individual”) violates the Agreement, such action(s) will be deemed a violation by the Entity, and PRC PACwill take disciplinary action against said Entity.

3.21 Repackaging and Re-labeling Prohibited

IAMs will not re-package, re-label, refill or alter the labels on any PRC PAC products, information, materials or programs.      PRC PAC products will be sold in their original containers. Re-labeling or re-packaging violates Federal and State laws, resulting in severe criminal penalties or PRC PAC sanctions as described in Section 11.1. Civil liability arises when, as a consequence of the re-packaging or re-labeling of products, the persons using the products suffer any type of injury or their property is damaged.

3.22 Request for Records

Any request from an IAM for copies or other records requires a fee of $25. These fees cover the expenses of time required to research files, copies of said records and postage required for the records. Distribution by any service other than regular first-class mail will be an additional charge.

3.23 Sale, Transfer or Assignment of PRC PAC Business

Although a PRC PAC business is a privately owned, independently operated business, the sale, transfer or assignment of a PRC PAC business is subject to certain limitations. If an IAM wishes to sell, transfer or assign his or her PRC PAC business, the following criteria must be met:

  • Protection of the existing line of sponsorship must always be maintained so the PRC PAC business continues to be operated in that line of sponsorship.
  • The buyer or transferee must not be a current IAM. If the buyer is an active PRC PAC IAM, he or she must first terminate his or her PRC PAC business and remain inactive for six (6) full calendar months before becoming eligible for purchase, transfer, assignment or acquisition of any interest in the PRC PAC business.
  • Before the sale, transfer or assignment will be finalized and approved by PRC PAC, any debt obligations the selling IAM has with PRC PAC must be satisfied. PRC PAC reserves the right to have the purchase funds placed in a PRC PAC escrow account for 90 days before the funds will be released to the seller.
  • The selling IAM must be in good standing and not in violation of any of the terms of the IAM Agreement or Policies and Procedures, to be eligible to sell, transfer or assign a PRC PAC Business.
  • No sale, assignment or transfer of any IAM entity, or IAM rights, shall be effective without the prior written consent of PRC PAC. All sales, transfers or assignments are at the sole discretion of PRC PAC.
  • Prior to consent, PRC PAC requires all documents of sale or transfer be signed and notarized by all interested parties of the sale, transfer or assignment, and submitted to PRC PAC for review and consent.
  • PRC PAC maintains the Right of First Refusal to purchase the said IAM Business. In the event PRC PAC does purchase the IAM business, any and all revenue earned by the IAM business will go to the company.
  • If it is determined in the Company’s sole discretion the IAM’s business was sold, transferred or assigned in an effort to circumvent compliance with the Agreement, the Policies and Procedures or the PRC PAC ‘Paid Positions’ Compensation Plan, the sale, transfer or assignment shall be declared null and void. The IAM business shall revert to the original IAM, who shall be treated as if the sale, transfer, or assignment had never occurred. If necessary, and at the company’s sole discretion, appropriate action, including termination, will be taken against the original IAM to ensure compliance with the IAM Agreement and the Policies and Procedures. PRC PAC shall not be liable

nor responsible for any monies which may have been exchanged in the unauthorized sale of the IAM’s business.

  • PRC PAC will charge the selling IAM a fee of $100 as an administrative fee upon submission for any sale, transfer or assignment.

3.24 Separation or Termination of a PRC PAC Business

PRC PAC IAMs may also operate their PRC PAC business as a husband-wife partnership, regular Partnership, Corporation(s) or Trust(s). If a marriage ends in divorce, or a Corporation, Partnership or Trust (the latter three are collectively referred to herein as “Entities”) dissolves, arrangements shall be made assuring any separation or division of the business is accomplished to not adversely affect the interests and income of other IAMs up or down the line of sponsorship. If the separating parties fail to provide for the best interests of other IAMs and the Company, PRC PAC will involuntarily terminate the IAM Agreement. During a pending of divorce or Entity Dissolution, the parties shall adopt one of the following methods of operation:

  • One of the parties may, with consent of the other(s), operate the PRC PAC business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners or trustees, authorize PRC PAC to deal directly and solely with the other spouse or non-relinquishing shareholder, partner or trustee.
  • The parties may continue to operate the PRC PAC business jointly on a “business-as usual” basis, whereupon all compensation paid by PRC PAC will be paid in the Joint names of the IAMs or in the name of the Entity, to be divided as the parties may independently agree between themselves.

Under no circumstances will the downline organization of divorcing parties or that of a PRC PAC business formerly operated by two or more individuals as any form of Entity, be divided. Similarly, under no circumstances will PRC PAC split commission and bonus checks between divorcing parties or members of dissolving Entities. PRC PAC will recognize one downline organization and will issue one commission check per PRC PAC business, per commission cycle. Commission checks shall be issued to the same individual, joint names or to the entity. In the event parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition of commissions and ownership of the business, the IAM Agreement shall be involuntarily canceled.

If a former spouse or a former Entity owner has relinquished all rights in his or her original PRC PAC business, said parties are thereafter free to enroll under any sponsor of their choosing, providing the waiting period requirement set forth in these Policies & Procedures is met. Said spouse or partner shall have no rights to any IAMs in his or her former organization or to any former Retail Customer. He or she must develop the new business in the same manner as any new IAM.

3.25 Sponsoring

All IAMs in good standing have the right to sponsor and enroll others in PRC PAC. Each prospective customer or IAM has the ultimate right to choose his or her own sponsor. If two IAMs claim to be the sponsor of the same new IAM or customer, the company shall regard the first application received by the company as controlling. Industry practice suggests that the first IAM who actually works with a prospective Customer or IAM as having first claim to sponsorship. Basic tenets of common sense and consideration will govern with PRC PAC Compliance Department having the final authority.

3.26 Succession

Upon the death or incapacitation of an IAM, his or her business may be passed to his or her heirs. Appropriate legal documentation must be submitted to the Company to ensure the transfer meets legal requirements. An IAM should consult an attorney to assist him or her in the preparation of a will or testamentary instrument. If a PRC PAC business is transferred by a will or other testamentary process, the beneficiary acquires both existing liability and the right to collect all bonuses and commissions of the deceased IAM’s marketing organization, provided the below qualifications are met. If the heir so chooses, he or she may sell, transfer or assign the IAM business according to policies, see Section 3.2.3. If the heir(s) choose to conduct the PRC PAC business, they must:

  • Execute an IAM Agreement
  • Comply with terms and provisions of the Agreement
  • Meet all of the qualifications for the deceased IAM’s status
  • The Benefactor must provide PRC PAC with an “address of record” to which all bonuses and commission checks will be sent. Bonus and commission checks of a PRC PAC business transferred pursuant to this section will be paid in a single check to the Benefactor

3.26.1 Transfer upon Death of IAM

To affect a testamentary transfer of a PRC PAC business, the successor must provide the following to PRC PAC:

  • An original death certificate
  • A notarized copy of the will or other instrument establishing the successor’s right to the PRC PAC business
  • An executed IAM Agreement

3.26.2 Transfer upon Incapacitation of an IAM

To affect a transfer of a PRC PAC business because of incapacity, the successor must provide the following to PRC PAC:

  • A notarized copy of an appointment as trustee
  • A notarized copy of the trust document or other documentation establishing the trustee’s right to administer the PRC PAC business
  • An IAM Agreement executed by the trustee

SECTION 4 – RESPONSIBILITIES OF IAMs

4.1 Change of Address or Telephone Numbers

To ensure timely delivery of products, support materials and commission checks, PRC PAC files must be current. Street addresses are required for shipping as our shippers cannot deliver to a post office box. Any change of address or telephone number shall be corrected under the “Membership” section of the online Patriot Place Back Office.                                                   Updated information may also be mailed to PRC PAC’s Data Center. In order to guarantee proper delivery and data entry of the change, at least two-weeks notice must be provided to PRC PAC on all changes made by mail.

4.2 Ongoing Training

Any IAM or IAM(L)s (not IPMs) who sponsor another IAM or IPM into PRC PAC must perform a bona fide supervisory function to ensure that his or her downline is properly operating his or her PRC PAC business. IAMs must have ongoing contact, communication and coaching supervision with the IAMs in their downline organizations.      Examples include but are not limited to: newsletters, written correspondence, personal meetings, telephone contact, voice mail, electronic mail, and the accompaniment of downline IAMs to PRC PAC meetings, training sessions and other functions. Upline IAMs also are responsible to motivate and train new IAMs in PRC PAC product knowledge, effective sales techniques, the PRC PAC ‘Paid Positions’ Compensation Plan, and these Policies and Procedures.                             IAMs will monitor the IAMs in their downline organization to ensure downline IAMs do not make improper product or business claims, or engage in any illegal or inappropriate conduct. Upon request, every IAM will provide documented evidence to PRC PAC of his or her ongoing fulfillment of the responsibilities of a Sponsor. Failure to do so can result in termination.

4.3 Ongoing Sales Responsibilities

Regardless of their level of achievement, IAMs have an ongoing obligation to personally promote sales through the generation of new Customers and servicing their existing Customers.

4.4 Non-Disparagement

In setting the proper example for their downline, IAMs will not disparage PRC PAC, other PRC PAC IAMs, PRC PAC’s products, PRC PAC’s ‘Paid Positions’ Compensation Plan or the Company’s employees.

4.5 Reporting Policy Violations

IAMs observing a Policy violation by another IAM should bring the violation directly to the attention of the Compliance Department. Details of the incident that includes, but are not limited to: date, number of occurrences, persons involved, and any supporting documentation, need to be in writing and mailed or faxed to the PRC PAC Compliance Department.

4.6 Reviewing Policies and Procedures with Applicants

IAMs will review the most current version of the Policies and Procedures with individuals sponsored before applicant signs an IAM Agreement.

4.7 Unauthorized Communications

Any contact with PRC PAC’s Marketing Alliances, Vendors, Suppliers or Company associates outside the corporate workplace without PRC PAC’s prior written consent is strictly prohibited.         Questions regarding any of these businesses may be directed to the Compliance Department.

4.8 Release for use of Photo, Audio, Video Image, and/or Testimonial Endorsement

All PRC PAC IAMs hereby grant to PRC PAC, Inc., and its successors, assigns, employees and agents, the absolute and irrevocable right and permission, with respect to any photograph, audio and/or video picture taken of them, or in which they may be included with others, and with respect to any testimonial endorsement:

  • To use, reuse, broadcast, rebroadcast, publish, or republish such photo, audio, video, or endorsement, in all or in part, individually or in conjunction with any other photograph or video, or any other endorsement, in any current or future medium and for any purpose whatsoever, including (but not by way of limitation) marketing, advertising, promotion, and/or publicity; and,
  • In the case of visual representations, to copyright such photograph and/or video, in the original or as republished, in the name of PRC PAC, Inc., or in any other name. IAMs hereby confirm that the information given by them as a testimonial endorsement, or represented in a photograph, video or audio is true and accurate to the best of their knowledge. By submitting the testimonial, the IAM hereby waives any right that they may have to inspect or approve the finished or unfinished product or products, the advertising copy, printed, recorded, photographic or video matter which may be used in connection therewith, or the use to which it may be applied.
  • IAMs hereby release and discharge PRC PAC, Inc., and its and their successors, assigns, employees, and agents, from any and all liability, claim and/or demand arising out of or in connection with the creation and the use of the above-mentioned photograph, video, audio or endorsement, including any claim for defamation.

SECTION 5 – SALES REQUIREMENTS

5.1 Product Sales

The PRC PAC ‘Paid Positions’ Compensation Plan is based upon an IAM’s efforts to grow the Primary the Ruling Class movement via the solicitation of new members, retaining of existing members, constructive organization of internal cells and teams, as well as the resulting generation of non-tax-deductible political donations. IAMs must fulfill specified personal and downline requirements and meet responsibilities set forth in the Agreement, to be eligible for bonuses,

commissions and advancement to higher levels of achievement. The following sales requirements must be satisfied by IAMs to be eligible for commissions:

  • IAMs must satisfy their monthly auto-donation requirements as stated in the PRC PAC ‘Paid Positions’ Compensation Plan.
  • In regards to any consumable products offered through the PRC Store, a minimum of seventy percent (70%) of an IAM’s personal orders must be used or sold to his or her personal Retail Customers. IAMs may not purchase additional product until at least seventy percent (70%) of the previous order has been used or sold to end consumers.

5.2 No Territory Restrictions

There are no exclusive territories granted to anyone.

SECTION 6 – BONUSES AND COMMISSIONS

6.1 Bonus and Commission Qualifications

An IAM must be active and in compliance with the Agreement to qualify for bonuses and commissions.        PRC PAC shall pay commissions to said IAM in accordance with the PRC PAC ‘Paid Positions’ Compensation Plan. Unless specified differently, bonuses and commissions are paid monthly by the 10th day of the following month. Car Bonuses (if any) are paid monthly.

6.2 Adjustment to Bonuses and Commissions

IAMs receive bonuses and commissions based on the actual donations from personally sponsored new members and downline IAMs. If a donation is refunded, the bonuses and/or commissions attributable to the donation(s) will be deducted until recovered from the IAM(s) who received said bonus or commissions on the refunded donation(s). If necessary, the IAM(s) will be billed the amount of the adjustment until the account is cleared.

6.3 Unclaimed Commissions and Credits

Commission and bonus checks are void after 90 days from their date of issuance. Unallocated Earned Commissions that have remained in an IAM’s PRC Wallet for more than 90 days are considered to be re-donated back to the PAC. Customers or IAMs who have a credit account must use said credit within six (6) months from the date credit was issued.

SECTION 7 – ORDERING

7.1 Sales Goals

The foundation of a successful enterprise can be found on two platforms, developing and expanding donations by individuals who will become repeat donors and the development (enrollment, encouragement and continued coaching) of a downline team. It is strongly suggested that the time be divided equally as each portion of the foundation is necessary to support the other. Without repeat donations the organization will collapse.

7.1.1 PRC PAC Non-Affiliated Donors (NADs)

IAMs are encouraged to promote the sales of PRC Store merchandise to non-members. NADs simply go to any member’s PRC PAC website to place their orders, which they can charge to their credit card or they can mail in their orders directly to PRC PAC. PRC PAC will drop ship the ordered products directly to the customer. To ensure that IAMs receive the appropriate commission (if any), NADs may not place an order without being connected to an IAM. NADs can even have their own AutoShip profile.

7.1.2 Monthly Membership Subscription (Auto-donation)

Under this program, the IAM authorizes PRC PAC to have a specified dollar amount drafted automatically from their checking account or credit card account. This amount is based upon a pre-selected order, assuring the IAM has met his or her monthly volume requirements.

Disclosure of the Auto-donation program to prospective new IAMs is mandatory. A sponsoring IAM will not place anyone on Auto-donation or select memberships for them without total disclosure of the exact amount they will be billed monthly and what products, benefits, or services they will receive. The new IAM must agree to utilization of the Auto-donation program before the Auto-donation profile is setup. Violation of this policy will result in termination.

7.2 Purchasing PRC PAC Products

Each IAM will purchase his or her products directly from PRC PAC. If an IAM purchases products from another IAM, or any other source, the purchasing IAM will not receive the Personal Sales Volume associated with that purchase as it was previously credited to another IAM, nor will they be able to obtain a refund or exchange from PRC PAC.

7.3 General Order Policies

PRC PAC will attempt to contact the IAM either by telephone, e-mail or regular mail to obtain another payment regarding mail orders with invalid or incorrect payment. If these attempts are unsuccessful after five working days, the order will be returned unprocessed. No C.O.D. orders will be accepted. PRC PAC maintains no minimum order requirements.

7.4 Shipping and Back-Order Policy

PRC PAC will make every effort to ship products within five (5) business days from the date on which it processes an order, although it is our sincere goal of “Out the Door in 24!”, PRC PAC will expeditiously ship any part of any order currently in stock. If an ordered item is out of stock, said item will be placed on back-order and shipped as soon as PRC PAC receives additional inventory. IAMs will be charged and given Personal Sales Volume on back-ordered items unless notified that the product has been discontinued. PRC PAC will notify IAMs and NADs if items are back-ordered and are not expected to ship within 30 days from the date of the order. An estimated shipping date also will be provided. Back-ordered items may be substituted for other products upon an IAM’s or NAD’s written request.

7.5 Confirmation of Order

An IAM and/or recipient of an order must confirm that the product received matches the product listed on the shipping invoice and is free of damage. Failure to notify PRC PAC of any shipping discrepancy or damage within ten (10) days of receipt will void the right to request a correction.

SECTION 8 – PAYMENTS AND SHIPPING

8.1 Deposits

No money shall be paid to or accepted by an IAM for sale to a NAD except at the time of product delivery. IAMs will not accept money from NADs to be held for deposit in anticipation of future deliveries.

8.2 Insufficient Funds

It is the responsibility of each IAM to ensure there are sufficient funds or credit available in his or her account to cover the cost and fees attached to any order. PRC PAC is under no obligation to

contact IAMs regarding orders canceled due to insufficient funds or credit (section 7.3 notwithstanding). PRC PAC will not be responsible for any insufficient charges incurred by the IAMs financial institution as a result of their insufficient funds.

8.3 Returned Checks

All checks returned by an IAM’s bank for insufficient funds will not be re-submitted for payment. A $50.00 returned check fee will be charged to the account of the IAM. After receiving a returned check from an IAM, PRC PAC will require all future orders submitted by said IAM to be paid by credit card, money order or cashier’s check. Any outstanding balance owed to PRC PAC by an IAM for NSF checks and returned check fees will be withheld from subsequent bonus and commission checks.

8.4 Restrictions on Third-Party Use of Credit Cards and Checking Accounts

IAMs will not permit other IAMs or NADs to use their personal credit card or permit debits to their checking accounts, either to enroll or make purchases from the Company. In the event this occurs, PRC PAC will not be responsible for any charges incurred by the actual credit card holder.

8.5 Sales Taxes

Currently, FEC Regulations classify all PRC Store purchases and Membership fees and dues as non-tax-deductible political donations and are therefore not subject to sales tax. If the regulatory climate changes, PRC PAC may be required to charge sales taxes on all purchase made by IAMs and Customers. Under those circumstances, PRC PAC will collect and remit appropriate sales taxes on behalf of IAMs, based on the suggested retail price of the products. If an IAM has submitted a current Sales Tax Exemption Certificate and Sales Tax Registration License, sales taxes will not be added to the invoice. In that case the responsibility of collecting and remitting sales taxes to the appropriate authorities shall be then upon said IAM. Exemption from the payment of sales tax is applicable only to orders that are shipped to a state or province for which the proper tax exemption papers have been filed and accepted. Applicable sales taxes will be charged on orders that are drop-shipped to another state or province. Any sales tax exemption accepted by PRC PAC is not retroactive.

SECTION 9 – PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASES

9.1 Product Guarantee

PRC PAC guarantees its products against container rupture, workmanship or inadvertent product shortage. The broken or damaged item will be replaced at no cost to the IAM or Customer upon receiving the damaged product back at its shipping facility (or other designated address).

9.1.1 Returns by Retail Customers to IAMs

If for any reason a NAD is dissatisfied with any PRC PAC product or service, the NAD

may return said product within thirty (30) days for a replacement or exchange, less shipping charges. See Section 9.1.4 regarding procedures for IAM returns to PRC PAC from his or her NAD.

Failure of the IAM to facilitate or fulfill the above obligation will result in PRC PAC honoring this guarantee, refunding the appropriate money for a return and deducting the refunded amount plus a $30 processing fee from the IAM’s account.

9.1.2 Returns by IAMs (Products Returned by Personal NADs to the IAM)

If a NAD returns a product to the IAM from whom it was purchased, the IAM may return it to the company for an exchange or a replacement only. All products returned from personal NADs must be returned to the Company within 15 days from the date on which it was returned to the IAM, along with a copy of the sales receipt the IAM furnished the Customer for the original sale. To receive an exchange, an IAM shall furnish the unused portion of the product and written statement pertaining to the refund transaction with the Customer. Products must be exchanged within 90 days of the original IAM purchase. A $7.00 minimum processing fee is charged on all exchanges. The IAM is responsible for shipping cost on the returned product.

9.1.3 Returns by NADs directly to PRC PAC

PRC PAC offers NADs (not IAMs) a conditional thirty-day, guarantee. If for any reason a Customer is dissatisfied with any PRC PAC product or service, he or she may return that product to PRC PAC within 30 days, for a replacement or exchange, less shipping charges. Volume for any returns will be deducted during the volume week and month of the refund, with volume being deducted from the upline IAMs that profited from the original sale. There are no credits or exchanges on any service that has been completed. Service examples include but are not limited to: Trainings, Seminars, and any other Service oriented product. Credits or exchanges will not be given for the current month of services. Because all purchases, fees, and dues are considered non-tax-deductible donations by the IRS, no refunds will be issued under any circumstances except as when required by law.

9.1.4 Returns by IAMs (Personal Consumption Products Only)

If an IAM is dissatisfied with any PRC PAC product purchased for personal use, the Company will exchange products for 30 days from the shipment date. No refunds are given to IAMs. All returns must be postmarked within 15 days of receipt of an RMA number, see Section 9.1.5. Because all purchases, fees, and dues are considered non-tax-deductible donations by the IRS, no refunds will be issued under any circumstances except as when required by law.

 

9.1.5 Returns by IAMs upon Resignation

Any IAM who terminates their position must notify PRC PAC in writing. Because all purchases, fees, and dues are considered non-tax-deductible donations by the IRS, no refunds will be issued under any circumstances except as when required by law.

9.2 Procedures for Returns

The following procedures apply to all returns for refund, repurchase or exchange:

  • The IAM or Customer who purchased it directly from PRC PAC must return all merchandise, (except as allowed for in Article 9.1.1 above).
  • Products are not considered current or resalable if returned after the product’s commercially usable or shelf life has passed; if they are used; or if the company has clearly stated prior to the purchase that the products are seasonal, discontinued or special promotion products and are not subject to the repurchase obligation.
  • Opened videotapes, audiotapes, CDs or previously factory-sealed merchandise shall be considered not resalable and may not be returned for a refund. However, if a product proves to be defective, it may be replaced with the same product.
  • All products to be returned must have a Return Merchandise Authorization Number, see Section 9.1.5. This Return Authorization Number must be written on the outside of each box/carton returned. Packages received without an RMA number will be returned.
  • Packages sent to PRC PAC warehouse without following the RMA procedures will be refused and returned to shipper at their expense.
  • The return must be accompanied by:
  • A completed and signed applicable Product Return Form. § A copy of the original dated retail sales receipt or invoice.
  • The unused portion of the product in its original container if doing an exchange.
  • Proper shipping carton(s) and packing materials are to be used in packaging the product(s) being returned for replacement or refund. It is recommended to use UPS, Federal Express, Airborne, or other similar shipper which has shipment tracking capabilities. Insurance on the package is advisable as any loss or damage is the responsibility of the IAM until delivery to PRC PAC. All returns must be shipped to PRC PAC shipping prepaid. PRC PAC does not accept collect-shipped or damaged packages. If returned products are not received by the Company’s Distribution Center, it is the responsibility of the IAM to trace the shipment.
  • If an IAM is returning Merchandise to PRC PAC that was returned to him or her by a Retail customer, the Product must be received by PRC PAC within fifteen (15) days from the date on which the Retail Customer returned the merchandise to the IAM, and shall be accompanied by the sales receipt the IAM provided the Customer at the time of sale. No replacement of product will be made if the conditions of these requirements are not met.
  • Upon requesting an exchange, an itemized inventory of the items to be returned must be furnished via email. Attn: Exchanges – or via regular mail to PRC PAC corporate offices. Upon receipt of this inventory, the IAM will be furnished via facsimile or email (if possible – otherwise, US Mail) an estimated list of the dollar amount to be refunded on each acceptable item. This is strictly an estimate and will be contingent upon the resalable condition of the products.
  • After the IAM receives this estimate, they must ship the product, along with a copy of that estimate and the RMA information to PRC PAC. If there is no damage to the shipment or the items, a refund will be made no later than 60 days, although generally the majority of refunds are made within 30 days.
  • If the shipment or the contents arrived damaged, digital photos will be taken and posted to a web page. A postcard will be mailed to the shipping IAM explaining the damage and directing them to view the photos on the web page. The IAM will have 30 days in which to file a claim with the shipper for the damages and notify PRC PAC of their so doing. If the IAM fails to either (1) file a claim against the shipping company and (2) notify PRC PAC of that claim, after 30 days, PRC PAC will destroy the product and no refund will be made. Please note that this is not a PRC PAC “rule”: In all cases, whomever ships the product is the ONLY one who may file a claim for damages.

SECTION 10 – INACTIVITY AND CANCELLATION

10.1 Effect of Cancellation

PRC PAC shall pay commissions to such IAM in accordance with the PRC PAC ‘Paid Positions’ Compensation Plan to any IAM who complies with the terms of the IAM Agreement and these Policies and Procedures. An IAM’s bonuses and commissions constitute the entire consideration for the IAM’s efforts in generating sales and all activities related to generating sales. Following an IAM’s non-renewal of his or her IAM Agreement, or voluntary or involuntary cancellation of his or her IAM Agreement (all of these methods are collectively referred to as “cancellation”) or termination, the former IAM shall have no right, title, claim or interest to the marketing organization which he or she operated, or any commission or bonus from the sales generated by the organization. Following an IAM’s cancellation of his or her IAM Agreement, the former IAM shall not hold himself or herself out as a PRC PAC IAM and shall not have the right to sell PRC PAC products, memberships or services or attend PRC PAC related events. An IAM whose IAM Agreement is canceled shall receive commissions and bonuses only for the last full pay period he or she worked prior to cancellation, less any amounts withheld during an investigation preceding an involuntary cancellation or termination.

10.2 Inactive Status

It is the IAM’s responsibility to lead his or her marketing organization with the proper example in personal commissions from donations generated through his or her marketing organization. IAMs with less than $97 of Personal donations for any period will not receive a commission for the donations generated through their marketing organization for that pay period. If an IAM has not fulfilled his or her Personal Volume requirements for a period of three consecutive calendar months, his or her IAM Agreement shall be deemed inactive. This change of status will become effective on the day following the last day of the third month of inactivity. PRC PAC will not provide written confirmation of the change of status.

10.3 Involuntary Cancellation

IAMs in violation of any of the terms of the Agreement, including any amendments that may be made by PRC PAC, will result in any of the sanctions listed in Section 11.1, including the involuntary cancellation or termination of his or her IAM Agreement. Cancellation shall be effective on the date on which written notice is mailed with return receipt requested, to the IAM’s last known address.

10.4 Voluntary Cancellation

An IAM may voluntarily cancel his or her IAM Agreement at any time for any reason by giving written notice delivered to bill@PrimaryTheRulingClass.com.

10.4.1 Non-renewal

An IAM also may voluntarily cancel his or her IAM Agreement by failing to maintain Active status requirements.

SECTION 11 – DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS

11.1 Disciplinary Sanctions

Violation of the IAM Agreement, these Policies and Procedures, or any illegal, fraudulent, deceptive or unethical business conduct by an IAM will result, in one or more of the following corrective measures:

  • Issuance of a written warning or reprimand. Probation for a specific period of time may be one recourse, during which time, the IAM will refrain from any other infractions or face more severe disciplinary consequences including:
  • Imposition of a fine, which will be withheld from bonus and commission checks. Fines will vary according to the infraction and IAM’s rank and may include amounts to cover the cost of the infraction(s) or future restitution.
  • Loss of rights to one or more bonus and commission checks. This can be in the form of a suspension which prohibits further IAM activity until the case is resolved.
  • Adjustment of any marketing organization, including the movement of all or part of the marketing organization to another IAM.
  • Involuntary Termination of the offender’s IAM Agreement. § Requiring the IAM to take immediate corrective measures.
  • Any other measure expressly allowed within any provision of the Agreement.
  • Any other measure which PRC PAC deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the IAM’s policy violation or contractual breach.
  • Under the most serious of cases, PRC PAC may withhold from an IAM all or part of the IAM’s bonuses and commissions during the period that PRC PAC is investigating any conduct allegedly in violation of the Agreement. If an IAM’s business is canceled for disciplinary reasons, said IAM will not be entitled to recover any commissions withheld during the investigation period.
  • PRC PAC may institute legal proceedings for monetary and/or equitable relief or prosecute criminally at their sole discretion.

11.2 Grievances and Complaints

When an IAM has a grievance or complaint with another IAM regarding any practice or conduct in relationship to their respective PRC PAC businesses, the complaining IAM shall first report the problem to his or her immediate upline who will review the matter and attempt to resolve issues with the other party’s upline. If the issues cannot be resolved, it must be reported in writing to the Compliance Department. The Compliance Department will review the facts and attempt to resolve said issues. In the event said issue cannot be resolved, the grievance shall be referred to the Dispute Resolution             Board for                           final                      review   and   determination. You       may                         also                      contact PRC PAC via email with the subject Line: Attn: Ethics Dept.  IAM uplines have no authority to resolve any issues that circumvent, oppose or contradict the Agreement, the Policies and Procedures or PRC PAC’s Marketing and Compensation Plan.

11.3 Dispute Resolution Board

The purpose of the Dispute Resolution Board (“DRB”) is:

(1) To review appeals of disciplinary sanctions.

(2) To review matters between two or more PRC PAC IAMs.

(3) After response or settlement instituted by Compliance has been denied or otherwise remains unresolved, the Dispute Resolution Board (DRB) shall review evidence, deliberate and respond to current exceptional issues on a collective basis.

An IAM may submit a written request for a telephone or in-person hearing within seven (7) business days from the date of:

(1) The written notice by PRC PAC of disciplinary action.

(2) The written decision of Compliance regarding disputes between IAMs.

All communication with PRC PAC and the IAM seeking resolution of a dispute must be in writing. It is within the DRB’s discretion whether a claim is accepted for review. If the DRB agrees

to review the matter, it shall schedule a hearing within two (2) weeks of receipt of the IAM’s written request. All evidence, i.e. documents, exhibits, etc. that an IAM desires to have considered by the DRB must be submitted to PRC PAC no later than seven (7) days before the date of the hearing. The IAM shall bear all of the expenses related to his or her attendance and the attendance of any witnesses he or she desires to be present at the hearing. The decision of the Dispute Resolution Board will be final and subject to no further review. During pendency of the appeal before the DRB, the IAM waives his or her right to pursue arbitration or any other remedy.

11.3.1 Appeals of Involuntary Termination

Following an involuntary termination, the canceled IAM may appeal the termination to the Dispute Resolution Board (“DRB”). The IAM’s appeal must be in writing and received by the Company within twenty-five (25) days of the date of PRC PAC’s termination notice. The IAM must submit all supporting documentation with his or her appeal correspondence. The written appeal will be reviewed by the DRB. If the IAM files a timely Appeal of Termination, the DRB will review and reconsider the termination, consider any other appropriate action, and notify the IAM in writing of its decision. If PRC PAC does not receive the appeal within the 25-day period, the cancellation will be automatically and irrevocably deemed final.

11.4 Arbitration

Any controversy or claim arising out of or relating to the Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules. Judgment in the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. If an IAM files a claim or counterclaim against PRC PAC, he or she may do so only on an individual basis and not with any other IAM, or as part of a class or consolidated action.    IAMs waive all rights to trial by jury or to any court. All arbitration proceedings shall be held in Collin County, Texas.

There shall be one arbitrator, an attorney at law, who shall have expertise in business law transactions with a strong preference being an attorney knowledgeable in the direct sales industry, selected from the panel that the American Arbitration Panel provides. Each party to the arbitration shall be responsible for its own costs and expenses of arbitration, including legal and filing fees.

The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to a judgment in any court of competent jurisdiction. This agreement to arbitration shall survive any termination or expiration of the Agreement.

Nothing in these Policies and Procedures shall prevent PRC PAC from applying to and obtaining from any court having jurisdiction a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction, or other relief available to safeguard and protect PRC PAC’s interest prior to, during or following the filing of any arbitration or other proceeding or pending the rendition of a decision or award in connection with any arbitration or other proceeding.

11.5 Governing Law, Jurisdiction and Venue

Jurisdiction and venue of any matter not subject to arbitration shall reside in Collin County, Texas. The law of the State of Texas shall govern all disputes arising from the Agreement.

SECTION 12 – GLOSSARY OF TERMS

12.1 Definitions

ACTIVE IAM – An IAM who satisfies the minimum Personal Donation requirements, as set forth in the PRC PAC Marketing and Compensation Plan, to ensure that an IAM Agreement remains in force.

ACTIVE RANK – The term “active rank” refers to the current rank of an IAM, as determined by the PRC PAC Marketing and Compensation Plan, for any calendar month or volume period. To be considered “active” relative to a particular rank, an IAM must meet the criteria set forth in the PRC PAC ‘Paid Positions’ Compensation Plan for his or her respective rank. (See the definition of “Rank” below).

AGREEMENT – The contract between the Company and each IAM includes the IAM Application and Agreement, PRC PAC Terms and Conditions, the PRC PAC Policies and Procedures, the PRC PAC ‘Paid Positions’ Compensation Plan, and the Entity Application and Agreement (where appropriate). These documents collectively are referred to as the “Agreement.”

BONUS VOLUME (BV) – The commissionable value of products, memberships and services sold by the Company. Unless otherwise noted, all Bonus Volume is equal to 100% of the donation.

COMMISSIONABLE PRODUCTS / SERVICES – All PRC PAC products and services on which commissions and bonuses are paid. IAM Success Kits and sales aids are not commissionable products.

COMPANY – The term “Company” as it is used throughout the Agreement means PRC PAC.

CUSTOMER – When the term “Customer” (with an uppercase “C”) is used in these Policies and Procedures or other PRC PAC literature, it refers to a NAD (Non Affiliated Donor). For purposes of these Policies and Procedures, and the PRC PAC ‘Paid Positions’ Compensation Plan, Customers are not IAMs. If a customer subsequently decides to become an IAM, he or she must properly complete an IAM Agreement. When reference is made to Retail Customer, the term “Retail Customer” will be used.

DOWNLINE – See “Marketing Organization” below.

DOWNLINE ACTIVITY REPORT – A monthly report generated by PRC PAC that is issued with the IAM’s commission check and provides critical data relating to the identities of IAMs, sales information and enrollment activity of each IAM’s Marketing organization. This report contains trade-secret information, which is proprietary to PRC PAC.

DOWNLINE LEG – Each one of the individuals enrolled immediately underneath a particular IAM and their respective marketing organization represents one “leg” in the particular IAM’s marketing organization.

END CONSUMER – A person who purchases PRC PAC products for the purpose of personally consuming them, rather than for resale to someone else.

ENTITY AGREEMENT – A binding contract entered into by PRC PAC and any IAM who wishes to choose a corporate or partnership form of business. Upon acceptance by the Company, this contract, together with the Policies and Procedures, IAM Agreement and PRC PAC ‘Paid Positions’ Compensation Plan, spells out the complete rights of each party.

GROUP SALES VOLUME – The commissionable value of PRC PAC products generated by an IAM’s marketing organization. Group Sales Volume does include the Personal Sales Volume of the subject IAM and is used for rank qualification only.

IAM – Any person, who has submitted a complete PRC PAC IAM Agreement, has been accepted by PRC PAC and is authorized to merchandise PRC PAC products, sponsor others, and to receive compensation in accordance with the requirements of the Sales Compensation Plan. An IAM’s relationship to PRC PAC is governed by the IAM Agreement, which is a fully enforceable contract. An IAM is a fully Independent Contractor.

IAM TRAINING MANUAL – A selection of PRC PAC training materials and business support literature that each new IAM has the option to purchase. The Starter Manual is sold to IAMs at the Company’s cost.

IMMEDIATE HOUSEHOLD – Heads of household and dependent family members residing in the same house, including fiancés.

INDEPENDENT CONTRACTOR – Any IAM who merchandises the PRC PAC products in accordance with the Marketing and Compensation Plan and according to his or her own methods and abilities, and who is subject to the Company’s control only as to the PRC PAC Policies and Procedures, IAM Agreement and the Entity Agreement.

INVOLUNTARY CANCELLATION – The termination of an IAM’s Agreement and PRC PAC business that is initiated by PRC PAC.

LEVEL – The layers of downline IAMs in a particular IAM’s marketing organization. This term refers to the relationship of an IAM relative to a particular upline IAM, determined by the number of IAMs between them who are related by sponsorship. For Example: if A sponsors B, who sponsors C, who sponsors D, who sponsors E, then E is on A’s fourth level.

MARKETING ORGANIZATION – All levels of IAMs below a particular IAM.

OFFICIAL PRC PAC MATERIAL – Literature, audio or videotapes and other materials developed, printed, published or distributed by PRC PAC to IAMs.

OVERRIDE – Compensation paid by PRC PAC to Qualified IAMs based on the Bonus Volume of products merchandised by that IAM’s personal group as set forth in the Marketing and Compensation Plan.

PERSONAL PRODUCTION – Moving product to an end consumer for personal use.

POLICIES AND PROCEDURES – The policies governing how an IAM is to conduct his or her business with PRC PAC its Affiliates, IAMs and Customers as set forth in this document.

NON AFFILIATED DONOR (NAD) – A customer who has not completed a PRC PAC IAM Agreement, however purchases products directly from PRC PAC.

RANK – The “title” that an IAM has achieved pursuant to the PRC PAC Marketing and Compensation Plan.

RECRUIT – For purposes of PRC PAC’s Conflict of Interest Policy (Section 4.6), the term “recruit” means to solicit, attempt to enroll, encourage, or attempt to influence in any way, either directly or through a third party, another PRC PAC IAM or Direct Customer to enroll or participate in another entity with a similar type of compensation structure, including but not limited to: multilevel marketing, network marketing or direct sales opportunity. This conduct constitutes recruiting even if the IAM’s actions are in response to an inquiry made by another IAM or Direct Customer.

RESALABLE – Goods and sales aids shall be deemed “resalable” if each of the following elements is satisfied: 1) they are unopened and unused; 2) packaging and labeling has not been altered or damaged; 3) the product and packaging are in a condition such that it is a commercially reasonable practice within the trade to sell the merchandise at full IAM or Direct Customer price; 4) products are returned to PRC PAC within one year from the date of purchase; 5) the product expiration date has not elapsed; and 6) the product contains current PRC PAC labeling. Any merchandise that is clearly identified at the time of sale as non-returnable, discontinued or as a seasonal item shall not be resalable.

RETAIL CUSTOMER – An individual who purchases PRC PAC products directly from an IAM.

RETAIL SALES COMMISSION – The difference between the discounted price of products and the retail price an IAM receives for products when they are resold.

SALES AIDS – Any material used in the merchandising of products to enroll prospective IAMs which makes reference to PRC PAC, its affiliated companies, the products, the Marketing and Compensation Plan or the trade names or logo.

SEVENTY PERCENT RULE – The Company has a strict policy prohibiting IAMs from stockpiling products. The PRC PAC Marketing and Compensation Plan is based on sales to the ultimate

Retail Consumer. In order to qualify for Overrides and Bonuses, an IAM must certify that at least 70 percent of all products previously purchased have been used or sold. PRC PAC recognizes that IAMs may wish to purchase products in reasonable amounts for their own personal consumption, Retail Sales Customers and support of their personal organization. For purposes of this rule, a sale may include a purchase for personal or family use. However, PRC PAC strictly prohibits the purchase of products in unreasonable amounts solely for the purpose of qualification or advancement in the PRC PAC Sales Compensation Plan.

SPONSOR – An IAM who enrolls another IAM into the program. The sponsoring IAM then takes responsibility for the training and success of the new IAM.

SUGGESTED RETAIL PRICE (SRP) – The price at which PRC PAC suggests IAMs sell a particular product or service to Retail Customers. Notwithstanding the SRP, IAMs are always free to sell PRC PAC products or services at any price they choose.

UPLINE – This term refers to the IAM or IAMs above a particular IAM in a sponsorship line up to the Company. Conversely stated, it is the line of Sponsorship that links any particular IAM to the Company.

VOLUNTARY CANCELLATION – The termination of an IAM or Customer Agreement instituted by the IAM or Customer who elects to discontinue his or her affiliation with PRC PAC (other than as a direct or Retail Customer) for any reason other than a termination instituted by PRC PAC for breach of contract of violation of the Policies and Procedures.

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