NOTE 9: TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES

During 2013, we paid employment compensation of approximately $155,000 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, Global Operations since May of 2013. Prior to that, Mr. Fredrick served as Vice President, North American Sales and Operations since January of 2011, 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 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:

	2013			2012
Sold Products	$	0.2	million	$	0.3	million
Contributed Cash Donations	$	0.9	million	$	0.5	million
Products Donated in Lieu of Cash	$	0.0	million	$	0.1	million

On December 1, 2011, the Company entered into a Consulting Agreement with WonderEnterprises, 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 paid Wonder $600,000 for consulting services performed by Mr. Caster plus reimbursable expenses through December 31, 2012, when the Consulting Agreement expired by its terms. Mr. Caster is the owner and an employee of Wonder.

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. Pursuant to the terms of the Consulting Agreement, the Company paid Wonder $300,000 plus reimbursable expenses for consulting services performed by Mr. Caster. The Consulting Agreement expired by its terms on May 31, 2013.

On June 3, 2013, the Company entered into a new consulting agreement with Wonder, effective June 1, 2013, for an initial term of six months or until November 30, 2013 for the consulting services of Mr. Caster. Pursuant to the terms of the Consulting Agreement, the Company paid Wonder $300,000 plus reimbursable expenses for consulting services performed by Mr. Caster. The Consulting Agreement expired by its terms on November 30, 2013.

On December 4, 2013, the Company entered into a new consulting agreement with Wonder, effective December 1, 2013, for an initial term of three months or until February 28, 2014 for the consulting services of Mr. Caster. Pursuant to the terms of the Consulting Agreement, the Company paid Wonder $150,000 plus reimbursable expenses for consulting services performed by Mr. Caster. The Consulting Agreement was not renewed and terminated according to its terms on February 28, 2014. Mr. Caster is no longer serving as a consultant for the Company.

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 2013 and 2012, the Company paid aggregate commissions and incentives to Mr. Robbins and his family of approximately $2.6 million and $3.0 million, respectively. The aggregate amount of commission and incentives paid to Mr. Robbins was approximately $2.4 million and $2.6 million in 2013 and 2012, respectively. The aggregate amount of commission and incentives paid to family members was approximately $0.3 million and $0.4 million in 2013 and 2012, respectively. The majority of $0.3 million and $0.4 milion paid to family members in 2013 and 2012, 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 $0.1 million and $0.2 million in 2013 and 2012, respectively. All commissions and incentives paid to Mr. Robbins and his family members are in accordance with the Company’s global associate career and compensation plan.