MA Rule Number (3) Three

The Company HIERARCHY TRANSFER POLICY
The Company, LLC.
Membership Agreement Rule No. 3

SUBJECT: Hierarchy Transfer Rules

Sales Position Designations Covered by this Membership Agreement Rule

This Membership Agreement Rule (“Rule”) is issued pursuant to the Membership Agreement (“MA”) and applies to all Members of The Company, LLC. (“AAG”) including those who hold the Vice President (Level 20) and higher-level sales position designations.

Purpose

This Rule clarifies, expounds on and further defines the commission payment policies that are addressed in the MA and that have become effective in previous publications to the field.

Transfers

Under normal circumstances, AAG does not allow transfers from one hierarchy to another. Vice President (Level 20) or above, are encouraged to resolve situations among the individuals involved rather than upset the hierarchical structure that is already in place. However, from time to time, there may be situations in which a transfer appears to be the preferred solution. In these cases, the following guidelines will apply:

Member Only Transfers

  1. If the individual requesting the transfer is a Training Associate (Level 5), a Senior Associate (Level 10), or a Provisional Vice President (Level 15), the immediate upline releasing Vice President (Level 20) must authorize the release of the Member from his/her hierarchy by signing the Form. The immediate upline accepting Vice President (Level 20) must sign the Form acknowledging acceptance of the Member into his/her hierarchy with the understanding that any outstanding Debit Balances of the transferring Member will be transferred into the hierarchy. Signatures of the releasing and accepting VPs (Level 20) are also required.
  2. If there is dissent among the individuals involved in the requested transfer regarding whether the transfer should occur, the dispute will be resolved by the appropriate CEO-VP (Level 35).
  3. The downline hierarchy of the transferring Member will not be transferred.

Member & Downline Hierarchy Transfers

  1. If the individual requesting the transfer is a Training Associate (Level 5), a Senior Associate (Level 10), or a Provisional Vice President (Level 15), all uplines up to and including the immediate upline releasing Vice President (Level 20) must authorize the release of the associate from his/her hierarchy by signing a Form. The immediate upline accepting Vice President (Level 20) must sign the Form acknowledging acceptance of the Member into his or her hierarchy with the understanding that any outstanding debit balances of the transferring Member(s) will be transferred into the hierarchy. Completed Form should be sent to the AAG Coding Department.
  2. If there is dissent among the individuals involved in the requested transfer regarding whether the transfer should occur, the dispute will be resolved by the appropriate CEO-VP (Level 35).
  3. The entire downline hierarchy of the transferring agent will be transferred.

Senior Level Transfers

In order to protect the integrity of the hierarchy, The Company, LLC will not process Vice President (Level 20) or above transfers. If a Senior Vice President (Level 25) feels strongly that the hierarchy would benefit from the transfer of a Vice President (Level 20) or above, they may present the case in writing to AAG Agency Relations. AAG Agency Relations will then present the case to the AAG Agency Committee for review.

Six Month / Nine Month Transfers

An alternative to the release and acceptance method of transfer may be used if the individual requesting the transfer has been inactive for a certain period of time prior to the requested transfer:

  1. If the individual requesting the transfer is a Training Associate (Level 5), a Senior Associate (Level 10), or a Provisional Vice President (Level 15), he or she must not have produced any personal business of any kind, received any overrides, recruited any associates, attended any AAG or any AAG Affiliated Company meetings or functions, or been promoted during the six month period preceding the request to transfer to another hierarchy. The individual must also not have submitted any paperwork for company appointments or licensing and/or approvals with any AAG Affiliated Companies or State Agencies. If the individual requesting the transfer is a Vice President (Level 20) or higher, he or she must not have produced any personal business of any kind, received any overrides, recruited any Members, attended any AAG or any AAG Affiliated Company meetings or functions, or been promoted during a nine month period preceding the request to transfer to another hierarchy. The individual must also not have submitted any paperwork for company appointments or licensing and/or approvals with any AAG Affiliated Companies or State Agencies.
  2. The inactivity period begins on the date which the Inactivity Declaration Form is received by the AAG Coding Department. This form is required for all Members who intend to transfer from his/her current upline based on the guidelines of the Inactivity Transfer (Six-Month Transfer).
  3. Only the Members requesting the transfer will be transferred. The Member’s down-line from the previous hierarchy will not be allowed to transfer to the new hierarchy or to another Member in the new hierarchy for a period of six (6) months. In the event AAG determines that the transfer violates the spirit of the six-month transfer rule, AAG reserves the right to prevent or rescind the transfer. Such violation of the six-month transfer rule may include, but is not limited to, submitting business through another hierarchy or through another member or a family member.
  4. If the individual requesting the transfer has a Debit Balance, it will be transferred to the new hierarchy. The accepting up-line’s signature indicates agreement to accept the Debit Balance. AAG will review the requested transfer, and, if the request qualifies, will process the coding changes.

Rights AAG

AAG expressly reserves the right to have final approval of any transfers and maintains the right to prevent or rescind the transfers. In addition, if AAG determines that a transfer is necessary, in its sole discretion, AAG reserves the right to transfer any Member at any time.