Disciplinary Sanctions

Violation of the Agreement, these Policies and Procedures, violation of any laws, regulations, international statutes or treaties, or any act or omission by an IBO that, in the sole discretion of the Company, may damage its reputation or goodwill (such damaging act or omission need not be related to the IBO’s MELiUS business), may result, at MELiUS' discretion, in one or more of the following corrective measures:

• Issuance of a written warning or admonition;

• Requiring the IBO to take immediate corrective measures;

• Imposition of a fine, which may be withheld from bonus and commission checks;

• Loss of rights to one or more bonus and commission checks;

• With holding from an IBO all or part of the IBO’s bonuses and commissions during the period that MELiUS is investigating any conduct allegedly contrary to the Agreement. If an IBO’s business is cancelled for disciplinary reasons, the IBO will not be entitled to recover any commissions withheld during the investigation period;

• Suspension of the individual’s IBO Agreement for one or more pay periods;

• Involuntary termination of the offender’s IBO Agreement;

• Any other measure expressly allowed within any provision of the Agreement or which MELiUS deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the IBO’s policy violation or contractual breach;

• Instituting legal proceedings for monetary and/or equitable relief. Each violation is reviewed on a case-by-case basis, and all disciplinary actions are at the sole discretion of MELiUS.


    Mediation

Prior to instituting arbitration, the parties shall meet in good faith and attempt to resolve any dispute arising from or relating to the Agreement through non-binding mediation. One individual who is mutually acceptable to the parties shall be appointed as mediator. The mediator’s fees and costs, as well as the costs of holding and conducting the mediation, shall be divided equally between the parties. Each party shall pay its portion of the anticipated shared fees and costs at least ten (10) days in advance of the mediation. Each party shall pay its own attorneys’ fees, costs, and individual expenses associated with conducting and attending the mediation. Mediation shall be held in Miami, Florida and shall last no more than two (2) business days.


    Arbitration

If mediation is unsuccessful, any controversy or claim arising out of or relating to the Agreement, or the breach thereof, shall be settled by confidential arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. IBOs waive all rights to trial by jury or to any court. All arbitration proceedings shall be held in Miami, Florida. All parties shall be entitled to all discovery rights pursuant to the Federal Rules of Civil Procedure. 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 selling industry, selected from the panel which 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.


NO CLASS ACTION, OR OTHER REPRESENTATIVE ACTION OR PRIVATE ATTORNEY GENERAL ACTION OR JOINDER OR CONSOLIDATION OF ANY CLAIM WITH A CLAIM OF ANOTHER PERSON OR CLASS OF CLAIMANTS SHALL BE ALLOWABLE.


Nothing in these Policies and Procedures shall prevent MELiUS 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 MELiUS' 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.


    Governing Law, Jurisdiction, and Venue

Jurisdiction and venue of any matter not subject to arbitration shall reside exclusively in Florida. The Federal Arbitration Act shall govern all matters relating to arbitration. The laws of Florida shall govern all other matters relating to or arising from the Agreement. Notwithstanding the foregoing, and the arbitration provision in this Agreement, residents of the State of Louisiana shall be entitled to bring an action against MELiUS in their home forum and pursuant to Louisiana law.