MA Rule Number (2) Two

The Company HIERARCHY POLICY
The Company, LLC.
Membership Agreement Rule 2

SUBJECT: A) Anti-Stacking Policy – B) Hierarchy Policy for Married Couples

Sales Position Designations Covered by this Membership Agreement Rule

This Membership Agreement Rule (“Rule”) is issued pursuant to your Membership Agreement (“MA”) and applies to all Members of The Company, LLC. (“AAG”) including those who hold the Vice President sales position and higher-level sales position designations.

Purpose

The purpose of this Rule is to preserve the integrity of the hierarchy structure and assure that business is properly submitted by Members in accordance with applicable laws, rules and regulations, as well as AAG agreements, rules and guidelines.

Anti-Stacking Policy

“Stacking” occurs when business written by one Member is submitted through the code number of another Member rather than through the code number of the Member who actually wrote the business. Members may not stack business under any circumstances. A Member may only submit business that is written by that Member. It is a violation of state and federal regulations and AAG company policy to submit any business through an individual who was not actually present during the taking of the application.

Violation of Anti-Stacking Policy

If AAG becomes aware of an allegation of stacking business, an investigation will be conducted. If it is determined that Members stacked business, they will be subject to disciplinary action including, but not limited to, reassignment to other hierarchies, or termination for cause from AAG. Determination of whether a Member has violated the anti-stacking policy and its appropriate disciplinary action, if any, will be made by AAG in its sole discretion.

Hierarchy Policy for Married Couples

Married couples who are Members of The Company must be in the same hierarchy. Married couples may position themselves within AAG’s hierarchy structure in one of two ways:

    • Direct – A spouse may be positioned in a hierarchy direct to his or her spouse, provided the lowest ranking spouse remains below Vice President (Level 20). The higher-ranking spouse may attain any sales level designation he or she earns within AAG’s promotion guidelines and will be allowed to override his or her spouse’s business.
    • Side by Side If both spouses desire to become a Vice President (Level 20) or above, and qualify for such positions, both spouses must be positioned directly to the same upline Vice President (Level 20) with neither spouse direct to the other spouse. In other words, a married Member may not override his or her spouse if both spouses are a Vice President (Level 20) or above.

Marriage After Joining AAG

If two AAG Members marry each other after joining AAG, they must adhere to the requirements of Section V above. If the spouses cannot agree on the hierarchy adjustment to be made, AAG will assist in determining the appropriate arrangement. Changes to be made may consist of such adjustments as transferring one spouse from his/her hierarchy to the hierarchy of his/her spouse, changing one spouse’s level from a Vice President (Level 20) or above, to a Vice President (Level 20).

Divorce After Joining AAG

Married couples who divorce after joining AAG must remain in the same hierarchy arrangement as when they were married, unless a Member obtains the appropriate transfer paperwork, or complies with the six-month hierarchy transfer rule, or one of the divorced Members later marries a Member in another hierarchy. If a new marriage occurs, the newly married Members must re-arrange their hierarchy positions to comply with the choices in Section V above.

AAG Assistance

AAG may assist Members in making the necessary changes to comply with Section V above, or make other arrangements, in its sole discretion as it deems appropriate, in order to preserve the integrity of the hierarchy structure.