Terms and Conditions

BOMB PARTY™

POLICIES AND PROCEDURES

SECTION 1 – BOMB PARTY INTRODUCTION

1.1 – Policies and Compensation Plan Incorporated into Party Rep Agreement

These Policies and Procedures, in their present form and as amended at the sole discretion of Ring Bomb Party LLC (hereafter “Bomb Party” or the “Company”), are incorporated into, and form an integral part of the Bomb Party Independent Party Rep Agreement. Throughout these Policies, when the term “Agreement” is used, it collectively refers to the completed and submitted Bomb Party Independent Party Rep Application and Agreement, these Policies and Procedures and the Bomb Party Compensation Plan. These documents are incorporated by reference into the Bomb Party Independent Party Rep Agreement (all in their current form and as amended by Bomb Party).

1.2 – Purpose of Policies

Bomb Party is a company that markets its products through Independent Party Reps (hereafter “Party Rep”). It is important to understand that your success and the success of your fellow Party Reps depends on the integrity of the individuals who market our products. To clearly define the relationship that exists between Party Reps and Bomb Party, and to explicitly set a standard for acceptable business conduct, Bomb Party has established this Agreement. Party Reps are required to comply with all of the Terms and Conditions set forth in the Agreement which Bomb Party may amend at its sole discretion, as well as all federal, state and local laws governing their Bomb Party business and their conduct. Because you may be unfamiliar with many of these standards of practice, it is very important that you read and abide by this Agreement. Please review the information in these Policies and Procedures carefully. It explains and governs the relationship between you, as an independent contractor and the Company. If you have any questions regarding any policy or rule, do not hesitate to seek an

answer from your Sponsor or from Bomb Party Corporate.

1.3 – Amendments to the Agreement

Because federal, state, and local laws, as well as the business environment, periodically change, Bomb Party reserves the right to amend the Agreement in its sole and absolute discretion. By becoming a Party Rep, a Party Rep agrees to abide by all amendments that Bomb Party elects to make. Amendments shall be effective 30 days after publication of notice and posting the amended provision(s). Amendments shall not apply retroactively to conduct that occurred prior to the effective date of the amendment. The Company shall provide or make available to all Party Reps a complete copy of the amended provisions by posting in the Party Rep back office or by e-mail sent to all Party Reps. The continuation of a Party Rep’s Bomb Party business or a Party Rep’s acceptance of bonuses or commissions constitutes acceptance of any and all amendments.

1.4 – Delays

Bomb Party shall not be responsible for delays in performance of its obligations when performance is made commercially impracticable due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, riot, war, fire, death, curtailment of a party’s source of supply, or government decrees or orders.

1.5 - Policies and Provisions Severable

If any provision of the Agreement, in its current form or as may be amended, is found to be invalid or unenforceable for any reason, only the invalid portion(s) of the provision shall be severed and the remaining terms and provisions shall remain in full force and effect. The severed provision, or portion thereof, shall be reformed to reflect the purpose of the provision as closely as possible.

1.6 – Waiver

The Company never gives up its right to insist on compliance with the Agreement and with the applicable laws governing the conduct of a business. No failure of Bomb Party or a Party Rep to exercise any right or power under the Agreement or to insist upon strict compliance by the other party 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 the party’s right to demand exact compliance with the Agreement. Waiver by either party can be effectuated only in a signed writing. Bomb Party’s waiver of any particular breach by a Party Rep, or Bomb Party’s waiver of any particular provision of the Party Rep Agreement or these Policies and Procedures, shall not affect or impair Bomb Party’s rights with respect to any subsequent breach, nor shall it affect in any way the rights or obligations of any other Party Rep. Nor shall any delay or omission by Bomb Party to exercise any right arising from a breach affect or impair Bomb Party’s rights as to that or any subsequent breach.

The existence of any claim or cause of action of one party against the other party shall not constitute a defense to a party’s right to enforce any term or provision of the Agreement.

1.7 – Code of Ethics

Bomb Party has made a commitment to provide an outstanding direct sales experience backed by impeccable service to all Bomb Party Independent Party Reps (“Party Reps”). In turn, we expect Party Reps to reflect that image in their relationships with Customers and fellow Party Reps.

As a Party Rep you are expected to operate your business according to the highest standards of integrity, ethics, and fairness in your role as a Party Rep. Failure to comply with the following Code of Ethics can result in the imposition of disciplinary sanctions, including withholding of commissions and the suspension or termination of the Party Rep Agreement, as described in Section 10.1 below. The Code of Ethics, therefore, states:

As a Party Rep:

• I will conduct my business in an honest and ethical manner at all times.

• I will make no representations about the benefits of being a Party Rep other than those allowed by this agreement.

• I will provide support and encouragement to my customers to ensure that their experience with Bomb Party is a successful one.

• I will motivate and actively work with Party Reps of my downline organization to help them build their Bomb Party businesses. I understand that this support is

critical to each Party Rep’s success with Bomb Party.

• I will not make any type of income claim or testimonial not allowed by this agreement including disclosing my personal income or the income potential in general and will stress to Party Rep prospects the level of effort and commitment required to succeed in the business.

• I will not abuse the goodwill of my association with Bomb Party to further or promote other business interests (particularly those which may be competitive to Bomb Party) without the prior written consent of Bomb Party.

• I will not make disparaging remarks about other products, services, Party Reps, or companies; likewise, I will not willfully denigrate the activities or personalities of fellow Party Reps.

• When utilizing social media to promote my Bomb Party business, I will do so in a positive and professional manner and will not bully or harass other Party Reps or customers and will not make negative posts or comments about Bomb Party, Bomb Party products, other Party Reps, customers, or any other direct selling company or the products of any other direct selling company.

• I will abide by all of the Policies and Procedures of Bomb Party as included herein, or as may be amended from time to time. I will not make any payment(s) or promise to pay any prospective or existing Party Rep in return for such Party Rep’s enrollment, continued enrollment, team building or recruiting activities with Bomb Party.

• I will strive to sell and promote Bomb Party products in a professional and ethical manner to end user retail customers and will consistently display a professional image at all times while promoting the sale of Bomb Party products, both online and offline. To that end, I agree to adhere to the following when engaged in the sale or promotion of Bomb Party products:

o I will not use inappropriate or vulgar language in any sales or reveal session.

o I agree that my appearance during sales and reveal sessions shall be neat and professional and that I will not wear any clothing that could be

construed as offensive or distasteful.

o I will not bully others and will not use any language or make any statements that are defamatory, abusive, harassing, threatening, bigoted, hateful, vulgar, obscene, or that otherwise may harm or be expected to harm any other person on the basis of their race, gender, sexual orientation, or religion.

o I will not make any statement that encourages or advocates illegal activity.

SECTION 2 - BECOMING A PARTY REP

2.1 – Requirements to Become a Party Rep

To become a Party Rep, each applicant must:

1. Be 18 years of age or older;

2. Be authorized to work in and reside in the United States, a U. S. Territory, or any country that Bomb Party has officially announced is open for business;

3. Not be in jail or prison or otherwise confined to a correctional institution;

4. Not be a current employee, officer or director of Bomb Party, or the spouse or immediate family member of any of the foregoing;

5. Complete and submit an Independent Party Rep Application that is accepted by Bomb Party;

6. Purchase a Party Rep Starter Kit; and

7. Have a valid e-mail address and valid credit card.

The Company reserves the right to reject any applications for a new Party Rep.

2.2 – Independent Contractor Status

Party Reps are independent contractors. The agreement between Bomb Party and its Party Reps does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the Party Rep. A Party Rep shall not be treated as an employee for his or her services or for Federal or State tax purposes. All Party Reps are responsible for paying local, state, and federal taxes due from all compensation earned as a Party Rep. The Party Rep has no authority (expressed or

implied) to bind the Company to any obligation.

Each Party Rep shall establish his or her own goals and hours, so long as he or she complies with the terms of the Party Rep Agreement, these Policies and Procedures, and applicable laws.

2.3 – Party Rep Benefits

Once Bomb Party has accepted and approved a Party Rep Application and Agreement, the Party Rep is able to participate in and take advantage of the benefits of the program and Compensation Plan. These benefits include the right to:

1. Purchase Bomb Party products at the Party Rep prices.

2. Sell Bomb Party products at home parties, online (virtual) parties, and through the Party Rep’s website and profit from these sales.

3. Participate in the Bomb Party Compensation Plan (receiving bonuses and commissions, if eligible).

4. Sponsor other individuals as Party Reps into the Bomb Party business and thereby, build a Team and advance through the various ranks under the Bomb Party Compensation Plan.

5. Participate in Bomb Party sponsored support, service, training, motivational and recognition functions, upon payment of appropriate charges, if applicable.

6. Participate in promotional incentive contests and programs sponsored by Bomb Party for its Party Reps.

2.4 – Term and Renewal of Your Independent Bomb Party Business

The term of the Agreement is one year from the date of enrollment. Unless the Agreement has been terminated as provided at Sections 10.1 and 11.1, the Agreement shall automatically renew for annual one-year terms on each anniversary of the enrollment date. A Party Rep may cancel the Agreement at any time and for any reason. If a Party Rep does not cancel, the Agreement will be automatically renewed. The Company may elect not to renew the Agreement on any anniversary but must give at least 30 days’ prior written notice of its election to not renew the Agreement.

2.5 – Tax ID Verification / Substitute W-9

With respect to the Social Security Number, Employer Identification Number, or

Taxpayer Identification Number that you provide to Bomb Party, you certify, under penalty of perjury, as follows:

• The number provided is my correct taxpayer identification number (or I am waiting for a number to be issued to me);

• I am not subject to backup withholding because: (i) I am exempt from backup withholding, or (ii) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (iii) the IRS has notified me that I am no longer subject to backup withholding; and

• I am a U.S. citizen or other U.S. person (a U.S. resident alien, a partnership, corporation, company, or association created or organized in the United States or under the laws of the United States, an estate (other than a foreign estate), or a domestic trust (as defined in 26 CFR 301.7701-7)).

SECTION 3 - BUSINESS PRACTICES

3.1 – Conflicts of Interest

The parties agree that any violation of these Conflicts of Interest policies shall cause Bomb Party irreparable harm for which there is no adequate remedy at law, and that such harm will outweigh any injury to a Party Rep should injunctive relief be granted to the Company. Bomb Party shall therefore be entitled to immediate and permanent equitable relief to prevent further violations of the policy.

3.1.1 – Non-solicitation

Party Reps are free to participate in other direct selling ventures or marketing opportunities (including party plan, network marketing and multilevel marketing). However, during the term of this Agreement, Party Reps may not directly or indirectly recruit other Party Reps for any other direct selling business.

Following the cancellation of a Party Rep’s Party Rep Agreement, and for a period of six calendar months thereafter, a former Party Rep may not recruit any Party Rep for another network marketing business. Note that the foregoing limitation does not apply to Party Reps who were personally sponsored by the former Party Rep.

Party Reps and the Company recognize that because network marketing is conducted through networks of independent contractors dispersed across the entire United States and internationally, and business is commonly conducted via the internet and telephone, an effort to narrowly limit the geographic scope of this non-solicitation provision would render it wholly ineffective. Therefore, Party Reps and Bomb Party agree that this non-solicitation provision shall apply nationwide and to all international markets in which Party Reps are located and doing business. This provision shall survive the termination or expiration of the Agreement.

As used in this Section 3.1.1, the term “recruit” means the actual or attempted sponsorship, solicitation, enrollment, encouragement, or effort to influence in any way, either directly or indirectly, or through a third party, another Party Rep to enroll or participate in another direct selling ventures or marketing opportunities (including party plan, network marketing and multilevel marketing).

3.1.2 – Sale of Competing Goods

Party Reps must not sell, or attempt to sell, any competing non-Bomb Party products at any Bomb Party-related event such as a home party or virtual party. Any product in the same categories as Bomb Party products is deemed to be competing (e.g., any ring bombs, bath bombs, ring bath bombs, ring candles, or products containing rings or jewelry inside to reveal).

3.1.3 – Party Rep Participation in Other Direct Selling Programs

If a Party Rep is engaged in other non-Bomb Party direct selling programs, it is the responsibility of the Party Rep to ensure that his or her Bomb Party business is operated entirely separate and apart from any other program in which the Party Rep participates. To this end, the following must be adhered to:

1. Party Reps may not sell or attempt to sell any competing non-Bomb Party products to other Party Reps. Any product in the same generic categories as Bomb Party products (e.g., any ring bombs, bath bombs, ring bath bombs, ring candles, or products containing rings or jewelry inside to reveal) is deemed to be competing, regardless of differences in cost, quality, or other distinguishing factors.

2. The Party Rep may not offer the Bomb Party opportunity or products to non- Bomb Party prospective or existing customers in conjunction with any non-Bomb Party program, opportunity, product, or service.

3. The Party Rep shall not display Bomb Party promotional materials, sales aids, or products with or in the same location as any non-Bomb Party promotional materials, sales aids, products, or services. For example, a Party Rep may not display or promote non-Bomb Party products at any virtual or in-person party or event at which Bomb Party products are promoted, displayed, or sold.

4. The Party Rep may not offer any other direct selling program (non-Bomb Party) opportunity, products, or services at any Bomb Party-related meeting, seminar, convention, virtual party, in-person party, social media (e.g., Facebook) page, email or email list, or Bomb Party replicated website.

3.1.4 – Confidential Information

“Confidential Information” includes, but is not limited to, the identities, contact information, and/or sales information relating to Party Reps and/or customers: (a) that is contained in or derived from any Party Reps’ respective Party Rep Back-Office; (b) that is derived from any reports issued by Bomb Party to Party Reps to assist them in operating and managing their Bomb Party business; and/or (c) to which a Party Rep would not have access or would not have acquired but for his/her affiliation with Bomb Party. Confidential Information constitutes proprietary business trade secrets belonging exclusively to Bomb Party and is provided to Party Reps in strict confidence. Confidential Information shall not be directly or indirectly disclosed to any third party nor used for any purpose other than Party Rep’s use in building and managing his/her Independent Bomb Party business.

To protect Confidential Information, a Party Rep shall not, on his or her own behalf, or on behalf of any other person, partnership, association, corporation, or other entity:

1. Directly or indirectly disclose any Confidential Information to any third party;

2. Directly or indirectly disclose the password or other access code to his or her Back-Office to any third party;

3. Use any Confidential Information to compete with Bomb Party or for any

purpose other than promoting his or her Bomb Party business; or

4. Recruit or solicit any Party Rep listed on any report or in the Party Rep’s Back-Office, or in any manner attempt to influence or induce any Party Rep, to alter their business relationship with Bomb Party.

3.2 – Sponsoring

All active Party Reps in good standing have the right to sponsor and enroll other Party Reps into Bomb Party. When recruiting and sponsoring a new Party Rep, a Party Rep may not offer financial or other incentives to a prospective Party Rep to entice the prospect to enroll under him or her. For example, a Party Rep may not offer to pay for the prospect’s starter kit, pay the prospect’s enrollment or renewal fees, or offer free products or other things of value to the prospect.

3.3 - Change of Party Rep Sponsor

A Party Rep may have only one Sponsor. To protect the integrity of the business and safeguard the hard work of all Party Reps, Bomb Party strongly discourages changes in sponsorship. Maintaining the integrity of sponsorship is critical to the success of every organization. Accordingly, the transfer of a Party Rep’s business from one Party Rep to another is rarely permitted.

Notwithstanding the foregoing, a Party Rep may submit a properly and fully completed Request for Change of Sponsor form to the Company together with any applicable fee as specified on the form. The form may be obtained by requesting it from Customer Support. The completed form is returned to the Company for review and preliminary approval of the need for a sponsor change. Following preliminary approval by the Company, the form must also be approved and signed by upline reps as specified on the form. If a Change of Sponsor is approved by both the Company and the upline, it will be implemented at the first of the month after approval.

Note that the use of a third party, a “straw-man”, or a trade name, DBA, assumed name, business entity, or a fictitious name, Tax ID number or other ID number to circumvent or attempt to circumvent this policy is prohibited.

3.4 – Cancellation and Re-application

A Party Rep may legitimately change organizations by voluntarily canceling his or her

Bomb Party business and remaining inactive (i.e., no purchases of Bomb Party products for resale, no sales of Bomb Party products, no sponsoring, no attendance at any Bomb Party functions, participation in any other form of Party Rep activity, or operation of any other Bomb Party business) for six (6) full calendar months. Following the six-month period of inactivity, the former Party Rep may reapply under a new Sponsor, however, the Party Rep’s former downline marketing organization will remain in the original line of sponsorship. In order to minimize disruption of compensation, Party Rep cancellations will be recognized and implemented at the first of the month after they are received.

3.5 – Waiver of Claims

In cases in which the appropriate sponsorship change procedures have not been followed, and a downline organization has been developed in the second business developed by a Party Rep, Bomb Party reserves the sole and exclusive right to determine the final disposition of the downline organization. Resolving conflicts over the proper placement of a downline that has developed under an organization that has improperly switched sponsors is often extremely difficult. Therefore, PARTY REPS WAIVE ANY AND ALL CLAIMS AGAINST BOMB PARTY, ITS OFFICERS, DIRECTORS, OWNERS, EMPLOYEES, AND AGENTS THAT RELATE TO OR ARISE FROM BOMB PARTY’S DECISION REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION THAT DEVELOPS BELOW A PARTY REP THAT HAS IMPROPERLY CHANGED LINES OF SPONSORSHIP.

3.6 – Cross-Sponsoring

Actual or attempted cross sponsoring is strictly prohibited. “Cross sponsoring” is defined as the enrollment of an individual or entity that already has a current Party Rep Agreement with Bomb Party, or who has had such an Agreement within the preceding six (6) calendar months, under a different line of sponsorship. The use of a another person’s name, a “straw-man”, or a trade name, DBA, assumed name, business entity, or a fictitious name, Tax ID number, or other ID number to attempt to circumvent or

attempt to circumvent this policy is also prohibited. Party Reps shall not demean, discredit, or defame other Party Reps in an attempt to entice another Party Rep to become part of the first Party Rep’s Team. If Cross Sponsoring is discovered, it must be brought to the Company’s attention immediately. Bomb Party may take disciplinary action against the Party Rep that changed organizations and/or those Party Reps who encouraged or participated in the Cross Sponsoring. Party Reps waive all claims and causes of action against Bomb Party arising from or relating to the disposition of the Cross Sponsored Party Rep’s Team.

3.7 – Customer Poaching

Every customer has the right to choose which Party Rep that he or she wishes to work with and be a customer of. After a customer has begun purchasing Bomb Party products from a Party Rep, all other Party Reps agree that they shall not entice or solicit in any way, or attempt to entice or solicit, in any way, such a customer to begin purchasing from another Party Rep. Therefore, if a customer has a pre-existing relationship with a Party Rep, each Party Rep agrees that he or she shall not affirmatively reach out to or contact that customer in an effort to encourage the customer to make future purchases from him or her.

3.8 – Unauthorized Claims and Actions

3.8.1- Indemnification

A Party Rep is fully responsible for all of his or her verbal and written statements made regarding Bomb Party products and the Compensation Plan, which are not expressly contained in official Bomb Party materials. This includes statements and representations made through all sources of communication media, whether person-to-person, in meetings, online, through social media, in print, or any other means of communication. Party Reps agree to indemnify Bomb Party and Bomb Party’s directors, officers, employees, and agents, and hold them harmless from any and all liability including judgments, civil penalties, refunds, attorney fees, court costs, or lost business incurred by Bomb Party as a result of the Party Rep’s unauthorized representations or actions. This provision shall survive the termination of the Party Rep Agreement.

3.8.2 - Product Claims

No claims, including personal testimonials, as to therapeutic, curative, or beneficial properties of any products offered by Bomb Party may be made except those contained in official Bomb Party literature. In addition, Party Reps must make clear to their customers that Bomb Party bombs are not intended to be used when bathing as traditional bath bombs are.

3.8.3 – Compensation Plan Claims

When presenting or discussing the Bomb Party compensation plan, Party Reps must make it clear to prospects that financial success in Bomb Party requires commitment, effort, and sales skill. Conversely, Party Reps must never represent that one can be successful without diligently applying themselves. Examples of misrepresentations in this area include, but are not limited to:

1. It’s a turnkey system.

2. The system will do the work for you.

3. Just get in and your downline will build through spillover.

4. Just join and I’ll build your downline for you.

5. The Company does all the work for you.

6. You don’t have to sell anything.

7. All you have to do is buy your products every month.

The above are just examples of improper representations about the compensation plan and the Company’s program. It is important that Party Reps do not make these, or any other representations, that could lead a prospect to believe that they can be successful as a Party Rep without commitment, effort, and sales skill.

3.8.4 – Income Claims and Income Disclosure Statement

Except as provided in this Section 3.8.4, Party Reps may not make income claims (including, without limitation, income projections, income testimonials, and lifestyle claims) or disclose their Bomb Party income or the income of any other Party Rep when presenting or discussing the Bomb Party opportunity or Compensation Plan to a prospective Party Rep. A lifestyle claim is a statement or depiction (including photos and images) that infers or states that the Party Rep is able to enjoy a luxurious or successful lifestyle due to the income they earn from their Bomb Party business.

1. Permitted Income Claims – Income Disclosure Statement Required. A Party Rep may

make limited income claims consisting of personal income testimonials and personal lifestyle claims to prospective Party Reps if the following requirements are strictly adhered to:

a. The Party Rep must provide the prospect with a link to the current and up-to-date official Bomb Party Income Disclosure Statement (IDS) at the time that the income claim is made. Where possible, the Party Rep should provide a printed copy of the IDS to her prospects. The current IDS can be accessed and printed from https://www.bombparty.com/pws/homeoffice/tabs/income-disclosure

b. The income claim may be made only in person-to-person presentations and may not be made on social media or published to any website or any printed material.

c. The income claim(s) must be absolutely factual and may only concern the Party Rep’s personal income experience with Bomb Party. As such, no hypothetical income representations or projections may be made, and a Party Rep may not make any income claim (including lifestyle income claims) that is based on the income of any other Party Rep.

d. When making an income testimonial, the Party Rep must also disclose the expenses that he or she has incurred as a Party Rep.

2. Examples of Permitted Income Claims. Below are examples of Permitted Income Claims, PROVIDED the Party Rep making the income claim a) provides a current copy of the IDS to the prospect; b) limits the claim to her personal income experiences; and c) the claim is factually correct and not fabricated, exaggerated, false, or otherwise misleading.

a. In 2019, my earnings from Bomb Party were $XXX and my expenses were $XXXX.

b. After being a Party Rep for three years, I am now earning about $XXX a month and my expenses average about $XXX a month.

c. I was able to quit my job and spend more time with my family because of my income from Bomb Party.

d. Because of my earnings from my Bomb Party business, we were able to send our kids to a private school.

e. Because of my earnings from my Bomb Party business, our family was able to spend the holidays at Disney World.

3. Prohibited Income Claims. Party Reps are prohibited from making the following types of income claims:

a. ANY type of income claim that is not in compliance with the requirements set forth in sub-section 1 above.

b. Any income claim that is based on the income of any other Party Rep.

c. Income projections or hypotheticals, unless the income projection or hypothetical was provided by Bomb Party for use by Party Reps.

d. Lifestyle claims that include images of luxury material possessions (e.g., homes, cars, jewelry, boats, recreational vehicles, etc.).

e. Any income claim that is aspirational in nature and includes terms such as “financial freedom”, “full-time income”, “early retirement”, or “life-changing income”.

4. Income Disclosure Statement. In addition to using the Income Disclosure Statement when making Permitted Income Claims, a Party Rep must provide a prospect with the link (or a printed copy) to the IDS whenever the Party Rep is promoting the Bomb Party opportunity to a prospective Party Rep, regardless of whether permitted income claims are made. Current copies of the IDS may be viewed and/or downloaded and printed at https://www.bombparty.com/pws/homeoffice/tabs/income-disclosure.

3.9 – Errors or Questions

If a Party Rep has questions about or believes any errors have been made regarding commissions, bonuses, Party Rep Activity Reports, or charges, the Party Rep must notify Bomb Party in writing within 30 days of the date of the purported error or incident in question. Bomb Party will not be responsible for any errors, omissions or problems not reported to the Company within 30 days.

3.10 – Governmental Approval or Endorsement

Neither federal nor state regulatory agencies or officials approve or endorse any direct selling or network marketing companies or programs. Therefore, Party Reps shall not represent or imply that Bomb Party or its Compensation Plan have been “approved,” “endorsed” or otherwise sanctioned by any government agency.

3.11 - Holding Applications or Orders

Party Rep must not manipulate enrollments of new Party Rep applicants and purchases of Bomb Party products.

3.12 - Income Taxes

Each Party Rep is responsible for paying local, state, and federal taxes on any income

generated as an Independent Party Rep. If a Bomb Party business is tax exempt, the Federal Tax Identification Number must be provided to Bomb Party. Every year, Bomb Party will provide an IRS Form 1099 MISC (Non-employee Compensation) earnings statement to each U. S. resident who: 1) Had earnings of over $600 in the previous calendar year; or 2) Made purchases during the previous calendar year in excess of $5,000. Note that the value of non-monetary recognition gifts, prizes, and giveaways are taxable as income to Party Reps and therefore will be reported on the IRS Form 1099 that is provided to each Party Rep meeting the thresholds described above.

3.13 - Inventory Loading

Party Reps should never purchase more products than they can reasonably use or sell to retail customers in a month, and must not influence or attempt to influence any other Party Rep to buy more products than they can reasonably use or sell to retail customers in a month. Party Reps are prohibited from ordering additional products from Bomb Party unless a minimum of 80% of the products that the Party Rep previously purchased during the current rolling three month period has been sold to retail customers as verified through the Bomb Party point of sale system.

3.14 – Bonus Buying

Bonus buying is strictly prohibited. Bonus buying is the purchase of merchandise for any reason other than bona fide resale or use, or any mechanism or artifice to qualify for rank advancement or maintenance, incentives, prizes, commissions or bonuses that are not driven by bona fide product purchases by end user consumers for actual use.

3.15 – Sales Receipts

If a Party Rep makes a sale of a Bomb Party product at any venue other than the Party Rep’s replicated website or his/her Facebook page, the Party Rep must provide his/her customer with two copies of an official Bomb Party sales receipt at the time of the sale. Party Reps must maintain true and correct copies of all retail sales receipts for a period of two years and furnish them to Bomb Party at the Company’s request. Retail customers who purchase from a Party Rep’s Replicated Website will automatically receive an email receipt at the time the order is placed.

If a Party Rep makes a sale of a Bomb Party product at a venue where only provision of

an unofficial receipt is feasible (such as at a trade show), the Party Rep must enter the sale through the online company system and provide an electronic copy of an official Bomb Party sales receipt to the customer as soon as possible after the sale – but not later than 72 hours after the sale.

3.16 - Adherence to Laws and Ordinances

Party Reps shall comply with all federal, state, and local laws and regulations in the conduct of their businesses. Many cities and counties have laws regulating certain home-based businesses. In most cases these ordinances are not applicable to Party Reps because of the nature of their business. However, Party Reps must obey those laws that do apply to them. If a city or county official tells a Party Rep that an ordinance applies to him or her, the Party Rep shall be polite and cooperative, and immediately send a copy of the ordinance to the Customer Support Department at Bomb Party.

3.17 – Minors

A person who is recognized as a minor in his or her state of residence may not be a Party Rep. Party Reps shall not enroll or recruit minors into the Bomb Party program. Notwithstanding the foregoing, a minor child or children of a Party Rep may assist his or her parent or guardian who is a Party Rep in the Party Rep’s operation of his/her Bomb Party business.

3.18 – International Marketing

Party Reps are authorized to sell Bomb Party products and enroll Party Reps only in the countries in which Bomb Party is authorized to conduct business, as announced at the Company’s website or in each Party Rep’s Back Office. In addition, no Party Rep may, in any unauthorized country: (a) conduct enrollment or training meetings; (b) enroll or attempt to enroll potential Party Reps; or (c) conduct any other activity for the purpose of establishing a Team or promoting the Bomb Party opportunity.

3.19 - One Bomb Party Business per Party Rep per Household

A Party Rep may hold only one account under a single Sponsor. A person or entity may not be a party to more than one Party Rep Agreement or hold, directly or indirectly, any interest in any other Party Rep business, including any Party Rep business operated by a Business Entity. Party Reps whose credit card information appears on Party Rep

accounts other than their own will be in violation of this policy.

A Party Rep may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one Bomb Party business. Individuals of the same household may not enter into or have an interest in more than one Bomb Party business. A “household” is defined as spouses and dependent children living at or doing business at the same house address.

In order to maintain the integrity of the Bomb Party Compensation Plan, husbands

and wives, common-law couples, and couples who live together (referred to as “spouses” in this policy) who wish to become Party Reps must be jointly sponsored as one Bomb Party business.

Spouses, regardless of whether one or both are signatories to the Party Rep Application and Agreement, may not own or operate any other Bomb Party business, either individually or jointly, nor may they participate directly or indirectly (as a shareholder, partner, trustee, trust beneficiary, or any other legal or equitable ownership) in the ownership or management of another Bomb Party business in any form.

3.20 – Actions of Household Members or Affiliated Parties

If any member of a Party Rep’s immediate household engages in any activity which, if performed by the Party Rep, would violate any provision of the Agreement, such activity will be deemed a violation by the Party Rep and Bomb Party may take disciplinary action pursuant to these Policies and Procedures against the Party Rep. Similarly, if any partner, shareholder, member, or other individual ownership or management capacity (collectively “Affiliated Individual) in a corporation, partnership, LLC, trust or other entity (collectively “Business Entity”) violates the Agreement, such action(s) will be deemed a violation by the Business Entity and each Affiliated Individual, and Bomb Party may take disciplinary action jointly and severally against the Business Entity and/or each Affiliated Individual.

3.21 – Business Transfers

Party Reps in good standing who wish to sell or transfer their business must receive Bomb Party’s prior written approval before the business may be transferred. A business that is on disciplinary probation, suspension, or under disciplinary investigation is not in

good standing and may not be transferred unless and until the disciplinary matter is resolved. Requests to transfer a business must be submitted in writing to the Compliance Department at support@bombparty.com. The request to transfer will be denied if the business is not in good standing or if there is another reasonable reason for denying the request. Prior to transferring a business to a third party, the Party Rep must offer Bomb Party the right of first refusal to purchase the business on the same terms as negotiated with a third party. The Company shall have ten days to exercise its right of first refusal.

3.22 – Transfer Upon a Party Rep’s Death

Upon the death of a Party Rep, the Party Rep’s Bomb Party business and may be passed to his/her heirs. Prior to such transfer, the beneficiary of the business must provide Bomb Party with certified letters testamentary or letters of administration and written instructions of the executor of the estate, or an order of the court, that provides direction on the proper disposition of the business. The beneficiary must also execute and submit to the Company a Bomb Party Independent Party Rep Agreement within 30 days from the date on which the business is transferred by the estate to the beneficiary or the business will be cancelled. Because Bomb Party cannot divide commissions among multiple beneficiaries or transferees, the beneficiaries or transferees must form a business entity (corporation, LLC, partnership, etc.) and submit a Bomb Party Independent Party Agreement in the name of the business entity. Upon the completion of these requirements, Bomb Party will transfer the business and issue commissions to the individual beneficiary or business entity.

3.23 – Divorce of a Party Rep

Bomb Party is not able to divide commissions among multiple parties, nor is it able to divide a downline organization. Consequently, in divorce cases, any settlement or divorce decree must award the business in its entirety to one party. Bomb Party will recognize as the owner of the business the former spouse to whom the business is awarded pursuant to a legally binding settlement agreement or decree of the court. The former spouse who receives the Bomb Party business must also execute and submit a Bomb Party Independent Party Rep Agreement within 30 days from the date on which

the divorce becomes final or the business will be cancelled.

3.24 – Dissolution of a Business Entity

If a business entity that operates a Bomb Party business dissolves, the owners of the business entity must instruct the Company on the identity of the proper party who is to receive the business. The Bomb Party business must be awarded to a single individual or entity that was previously recognized by the Company as an owner of the business entity; the Company cannot divide the business among multiple parties or issue separate commission payments. The recipient of the Bomb Party business must also execute and submit a Bomb Party Independent Party Rep Agreement to the Company within 30 days from the date of the dissolution of the business entity or the Agreement will be cancelled. If the business entity wishes to sell or transfer its Bomb Party business to an individual or entity who was not previously recognized by the Company as an owner of the business entity, it must do so pursuant to Section 3.21 above.

3.25 – Handling Personal Information

If a Party Rep receives Personal Information from or about a Party Rep, a prospective Party Rep, a customer, or a prospective customer, it is the Party Rep’s responsibility to maintain the security of the Personal Information. The Party Rep should shred or irreversibly delete the Personal Information of others once the Party Rep no longer needs it. Personal Information is information that identifies or permits a person or entity to contact an individual. It includes the name, address, email address, telephone number, credit card information, social security or tax identification number, and other information associated with these details, of another person including customers, potential customers, Party Reps, and prospective Party Reps.

3.26 – Restrictions on Third Party Use of Payment Cards and Bank Account Access

Party Reps shall not permit other Party Reps, prospective Party Reps, customers, or prospective Customers to use his or her credit or debit card, or permit debits to their financial accounts, to enroll or to make purchases from the Company. Nor shall any Party Rep use his or her credit card, debit card, or permit debits to his or her bank account to pay for the enrollment of another Party Rep or to make purchases of Bomb Party products or services on behalf of another Party Rep or Customer.

3.27 – Technology Subscription

The technology subscription fee is a critical part of your Party Rep subscription. The technology subscription fees support your Backoffice, your replicated website, and your social media party integration with your website. These fees are not connected to Facebook or the Forums. If the technology subscription fees are not paid, you will not have access to your Backoffice or replicated website. If you want to gain access to your Backoffice and replicated website, you will be required to back pay for any previous non-active month(s). If a Party Rep does not pay his/her technology subscription fees for a period of two (2) consecutive months, the Party Rep’s Party Rep Agreement and his/her independent Bomb Party business shall be terminated.

SECTION 4 - MARKETING & ADVERTISING

4.1 - Adherence to the Bomb Party Marketing Plan

Party Reps shall not offer the Bomb Party opportunity through any other system, program, or method of marketing other than that specifically set forth by Bomb Party. Party Reps shall not require or encourage other current or prospective Party Reps to participate in Bomb Party in any manner that varies from the program as set forth by Bomb Party. Party Reps shall not require or encourage other current or prospective Party Reps to execute any agreement, document, or contract other than official Bomb Party agreements, documents, and contracts in order to become a Party Rep. A Party Rep shall not offer financial or other incentives (including paying for a prospect’s starter kit or enrollment fees or giving gifts or other things of value) in an effort to entice a prospective Party Rep to enroll as a Party Rep under him/her.

4.2 – Advertising

The marketing and promotion of Bomb Party, the Bomb Party opportunity, the Compensation Plan, and Bomb Party products shall be consistent with the public interest, and must avoid all deceptive, misleading, unethical or immoral conduct or practices.

Accordingly, Party Reps may only advertise or promote their Bomb Party business using approved Sales Tools acquired through Bomb Party. No approval is necessary to

use these approve