Jul 2, 2009

Global Expansion and Pre-Market Activity

We are thrilled with the enthusiasm and interest displayed by many of you and your prospective distributors across the globe as MonaVie seeks to provide each of you with additional international opportunities.

MonaVie invests significant time and resources to prepare for market openings, and we encourage you as leaders to foster enthusiasm for future opportunities in accordance with our pre-market guidelines. Violating MonaVie's pre-market policy places the company and the very opportunity we are trying to secure at risk.

Pre-Market Policies: Please Inform Your Organization

". . . Each MonaVie distributor must understand that attempts to circumvent this authorized method for pre-market enrollment of distributors will be subject to appropriate disciplinary action, including likely removal from the tree of those who have been placed there in an unauthorized way (i.e., fabricated addresses, National ID Numbers), thus requiring re-enrollment at the bottom of the tree. Our desire is to create fair and equitable enrollment opportunities for all distributors when new markets are announced and enrollment opportunities are authorized." (March 24, 2009 communication to all distributors.)

As a reminder and from our own Policies and Procedures, paragraph 4.13.4:

"You may not engage in any business activity in an unopened country unless we make a general announcement to all qualifying Distributors. Such general announcement will specify the limited business activities permissible in the unopened market, including the date when premarket activity may commence and the scope of the pre-market activity. Non-compliance with covenants of this subsection or the limitations set forth in the general announcements may result in termination of the Agreement."

Fostering Enthusiasm, Reducing Risk

As a company, we seek not to stymie the healthy side of authorized pre-market preparations, such as the early building of relationships and generating excitement about a future opportunity. But shipping unregistered/unapproved product or enrolling with a fictitious national ID numbers and/or nonresident mailing or shipping addresses is putting the company and the opportunity at risk.

Recently, this illegal behavior has become such an issue that, in an effort to protect the reputation and best interests of the company and its valued distributor base, we have had to fine, suspend, and even terminate such leaders who are working against our policies.

Please help us to properly represent our international growth plans and manage realistic expectations by communicating what has been authorized by our International Development organization regarding expected country openings for 2009 and 2010.

Authorized Pre-Market Activity

  1. Malaysia: no advertising; small meetings with limited attendance, but no open meetings; no sale or distribution of product
  2. Netherlands, UK and Poland: no advertising; pre-enrollment; small meetings with limited attendance, but no open meetings; no sale or distribution of product
  3. Korea: no advertising, no meetings, no sale or distribution of products
  4. Other countries: no activity whatsoever has been authorized

Resources Available for New Markets

Know that MonaVie Founder, Chairman, and CEO Dallin A. Larsen along with the executive management team determine where, when, and how we will open future markets. Please know that we must balance available resources in efforts to develop and grow markets we have already entered.

Thank you for all you do and will do to help us manage this issue. What a thrill it is to be a part of a company that is recognized across the globe for its business ethics, products, and generous business opportunities. Let's join together to preserve all that is good about MonaVie as we change lives for good across the globe.

In Summary

We request that you do the following:

  • Fully endorse and comply with MonaVie's pre-market policies and procedures and expect similar compliance among those you lead.
  • Invest time, resources, and interest in markets which are already open. There are huge opportunities in these markets and we need your help in establishing and developing field leadership.
  • Introduce MonaVie to those in opened/established markets who have ethnic roots or other connections in future markets and help them build excitement in anticipation of announced future market openings.
  • Remind those who are violating our pre-market policies and procedures that they are running the risk of losing their distributorship and that you cannot condone or support such activity.