TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES

12 Months Ended

Dec. 31, 2012

TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES [Abstract]

TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES

NOTE 9: TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES

During 2012, we paid employment compensation of approximately $154,000 in salary, bonus, auto allowance, and other compensation to Landen Fredrick, son of J. Stanley Fredrick, the Company's Chairman of the Board and a major shareholder. In addition, Landen Fredrick participated in the employee health care benefit plans available to all employees of the Company. Landen Fredrick has served as Vice President, North American Sales and Operations since January of 2011. Prior to that, Mr. Fredrick served as Vice President, North American Sales since February of 2010 and as Senior Director of Tools and Training since his hire in May of 2006.

Mr. Caster, the Company's founder, major stockholder, and former Chairman of the Board, founded MannaRelief in 1999 and served as its Chairman from 1999 through August 2007. MannaRelief employs William A. Mullens, Mr. Caster's brother-in-law, as its Executive Director.  Mr. Caster's wife, Linda Caster, serves as MannaRelief's Chairman of the Board. MannaRelief is a 501(c)(3) charitable organization that provides charitable services for children.  MannaRelief is not owned or operated by the Company.

Historically, the Company has made cash donations to MannaRelief, sold products to MannaRelief at cost plus shipping and handling charges, and shipped products purchased by MannaRelief to its chosen recipients. In addition, certain Company employees and consultants periodically volunteer to work or host various fund raising projects and events for MannaRelief at no cost to MannaRelief.

 The Company has made cash donations and sold products to MannaRelief as follows:

	2012		2011
Sold Products	$	0.3 million	$	0.4 million
Contributed Cash Donations	$	0.5 million	$	0.7 million
Products Donated in Lieu of Cash	$	0.1 million		—

On December 1, 2011, the Company entered into a new Consulting Agreement with Wonder Enterprises, LLC (f/k/a Salinda Enterprises, LLC; hereinafter "Wonder") for an initial term of six months with a renewal period of six months upon thirty days written notice by the Company. Pursuant to the terms of the Consulting Agreement, the Company has paid Wonder $600,000 for consulting services performed by Mr. Caster plus reimbursable expenses through December 31, 2012.

On March 6, 2013, , the Company entered into a new consulting agreement with Wonder, effective January 1, 2013, for an initial term of six months or until May 31, 2013 for the consulting services of Mr. Caster who is an employee of Wonder. Pursuant to the terms of the Consulting Agreement, the Company will pay Wonder $300,000 plus reimbursable expenses for consulting services performed by Mr. Caster. The Consulting Agreement may be renewed by the Company for an additional six month period upon 30 days' written notice to Wonder before the expiration of the current term.

Mr. Ray Robbins is a member of the Company's Board of Directors and a major shareholder. Mr. Robbins holds positions in the Company's associate global downline network marketing system. In addition, several of Mr. Robbins' family members are independent associates. The Company pays commissions and incentives to its independent associates and during 2012 and 2011, the Company paid aggregate commissions and incentives to Mr. Robbins and his family of approximately $3.0 million and $3.2 million, respectively. The aggregate amount of commission and incentives paid to Mr. Robbins was approximately $2.6 million and $2.8 million in 2012 and 2011, respectively. The aggregate amount of commission and incentives paid to family members was approximately $0.4 million in 2012 and 2011, respectively. The majority of $0.4 million paid to family members in each of 2012 and 2011, respectively, was paid to his son, Kevin Robbins in the amount of approximately $0.2 million in each year, as well as his daughter, Marla Finley, and daughter-in-law, Demra Robbins, who both share an account that totaled approximately $0.2 million in each year. All commissions and incentives were paid to Mr. Robbins and his family members in accordance with the Company's global associate career and compensation plan.