Chief Legal Officer & Senior Vice President, Business Development

(and frequent assistant to Jemima)

JONATHAN GELFAND

COMPLIANCE TOP 7 TIPS

OCTOBER 2015

How you behave is a direct reflection of who you are as a Team Beachbody® Coach—make the brand proud!

You are a Beachbody® Ambassador!

Our Compliance Team is here to help!

The P&P sets the rules for how to succeed and remain compliant.

HOW I LEARNED TO LOVE THE P&P

Many of the policies included are set by the requirements of the direct selling industry, the FTC, State Attorneys General, and many state and federal laws.

Violations of the P&P can lead to the suspension or even the termination of your business— not to mention potential legal action from state and federal regulators.

HOW I LEARNED TO LOVE THE P&P

INCOME CLAIMS

(P&P SECTION 3.6.3)

Being a Team Beachbody Coach is a great opportunity—it’s not a “get rich quick” scheme!

Just like how we promote the ability to succeed with a Beachbody fitness program, it takes hard work and discipline.

The FTC now attends distributor opportunity meetings to check on this. This is a critical compliance area.

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Beachbody does not guarantee any level of success or income from the Team Beachbody Coach Opportunity. Each Coach’s income depends on his or her own efforts, diligence, and skill. See our statement of Independent Coach Earnings located in the Coach Online Office for the most recent information on our Coaches’ actual incomes.

INCOME CLAIMS

(P&P SECTION 3.6.3)

The recent shutdown of a large network marketing company just last month by the FTC shows how key this is.

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Paid CASH for this baby—thanks Beachbody!

Paid for our new vacation home—thanks Beachbody!Beachbody does not guarantee any level of success or income from the Team Beachbody Coach Opportunity.

YESNO

PRODUCT CLAIMS/CLAIMS

OF CURE (P&P SECTION 3.6.2)

Only share your personal results or the Success Stories provided by Beachbody.Always make sure that you can support and prove what you are saying.

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NONO

PRODUCT CLAIMS/CLAIMS

OF CURE (P&P SECTION 3.6.2)

When you are discussing or featuring our products and results, you must always include our provided disclaimers and notices, such as the FDA disclaimer for nutritional products:

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These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.

If you aren’t sure, just ask the Compliance Team before you share it.

BONUS POOLS& INCENTIVES

(P&P SECTION 5.2.1)

Team Beachbody Coaches may offer incentives to their Team, however cash incentives in any amount are not permitted, or any other incentive, gift, or promotion focused on the recruitment or enrollment with a certain Coach.Team Beachbody Coaches may offer their Team a chance to participate in a business challenge where a bonus pool is offered. The value of the pool may not exceed $5K, and all money paid into the pool must be paid out, with no amount retained by the sponsoring or hosting Coach.

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BONUS POOLS& INCENTIVES

(P&P SECTION 5.2.1)

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YESAnyone who purchases a Challenge Pack in the month of November will receive a $25 gift card to Lululemon.

NO Anyone who joins my Team this month will get a trip to Hawaii!

BONUS POOLS& INCENTIVES

(P&P SECTION 5.2.1)

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YESAny of my personally sponsored Coaches who are a paid Diamond rank as of December 31st will receive a personal development book of their choice.

NOIf you keep your rank at Diamond so I can earn my Star Diamond Bonus, I’ll reward you with a diamond necklace from Tiffany & Co.

SOCIAL MEDIA

(P&P SECTION 3.2.8)

When promoting Beachbody or the business opportunity through any form of social media you must identify yourself as an Independent Beachbody Coach.

Please be respectful and kind in any communication you make.

Remember that what you place online, including on social media, usually lives forever!

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SOCIAL MEDIA

(P&P SECTION 3.2.8)

If you have a concern with another Coach’s conduct, we encourage you to reach out directly to respectfully discuss your concern—blasting the Coach in a public Facebook post is NOT the way to handle it!

If you still cannot resolve the concern, or the issue is with another network marketing company, please let Compliance take care of it.

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BONUS BUYING

(P&P SECTION 3.3) Beachbody regularly reviews payment transactions.

Coaches engaging in bonus buying may be immediately suspended and in addition, may be subject to potential fines.

5You can only pay for your own products through your own account. Using your credit card or otherwise making purchases for any other Coaches or customers is called “bonus buying” and is strictly prohibited.

BONUS BUYING

INTELLECTUAL PROPERTY,

TRADEMARKS, COPYRIGHTS,

ETC. (P&P SECTION 3.2.3)

The Coach Online Office is full of information, logos, and other images that you are permitted to use as you promote your Team Beachbody business.

Submit designs for advertisements, apparel, websites, and other promotional material to Compliance. This is especially important when you are using trainer names or images (and remember, you cannot sell any apparel or promotional items that include any Beachbody brands or trainer images or names).

You may not register any URL, Facebook page, group, or social media handle with any Beachbody brand, trainer name, or other protected term.

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BE A BEACHBODY

AMBASSADOR “AKA” OUR

COACH CODE OF ETHICS

(P&P SECTION 1.7)

Your actions both online and in person represent Beachbody, both our brands and our company.

Being a professional, positive, and respectful representative of this organization is important to do, day in and day out.

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BE A BEACHBODY

AMBASSADOR “AKA” OUR

COACH CODE OF ETHICS

(P&P SECTION 1.7)

Look for opportunities to problem solve together rather than accuse someone else of wrongdoing.

Your passion to help others improve and lead a healthy, more fulfilling life can be rewarding on so many levels.

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BE A BEACHBODY

AMBASSADOR “AKA” OUR

COACH CODE OF ETHICS

(P&P SECTION 1.7)

WE NEED YOUR HELP!You are the eyes and ears in the field and we all need to work together to protect the compliance and integrity of Team Beachbody.

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ON THE COMPLIANCE

TEAM

COMPLIANCE IS HERE FOR YOU!Email: compliance@teambeachbody.comPhone: (310) 295-5760Fax: (310) 496-2728

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