NOTE 9: TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES

For the year ended December 31, 2014, the Company has accrued donations of $0.5 million to the M5M Foundation, a non-profit organization that works to combat the epidemic of childhood malnutrition on a global scale. Several of the Company’s directors and officers and their family members serve on the board of the M5M Foundation, including:

Al Bala, the Company’s President;

Rob Sinnott, the Company’s CEO and Chief Science Officer;

Landen Fredrick, son of J. Stanley Fredrick, the Company’s Chairman of the Board and a major shareholder; and

Lorrie Fry, the daughter of Larry Jobe (a member of our Board).

During 2014, we paid employment compensation of approximately $170,000 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. Landen Fredrick also serves on the Board of the M5M Foundation.

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 2014 and 2013, the Company paid aggregate commissions and incentives to Mr. Robbins and his family of approximately $2.9 million and $2.6 million, respectively. The aggregate amount of commission and incentives paid to Mr. Robbins was approximately $2.6 million and $2.4 million in 2014 and 2013, respectively. The aggregate amount of commission and incentives paid to family members was approximately $0.3 million in each of 2014 and 2013, of which $0.2 million was paid each year to his son, Kevin Robbins, and $0.1 million was paid each year to his daughter, Marla Finley, and daughter-in-law, Demra Robbins, who both share an account. 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. The Company has also contracted with a software development firm owned by Ryan Robbins, the son of Mr. Ray Robbins. The value of services performed during 2014 were less than $0.1 million.

Johanna Bala, the wife of Al Bala, the Company's President, is an independent associate who earns commissions and incentives. The aggregate amount of commission and incentives paid to Johanna Bala was approximately $0.2 million and $0.1 million in 2014 and 2013, respectively.

Mr. Samuel Caster is the Company’s founder and former Chairman of the Board. Prior to January 2014, Mr. Caster’s beneficial ownership of the Company was approximately 18%, but in January 2014 fell below 5%.

Mr. Caster 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:

	2014		2013
Sold Products	$	0.3million	$	0.2million
Contributed Cash Donations	$	0.3million	$	0.9million

Beginning on December 1, 2011, the Company entered into a series of successive Consulting Agreements with WonderEnterprises, LLC (f/k/a Salinda Enterprises, LLC; hereinafter “Wonder”), where the Company paid Wonder for consulting services performed by Mr. Caster plus reimbursable expenses. Mr. Caster is the owner and an employee of Wonder. For each of the years ended December 31, 2014 and 2013, Mr. Caster received $0.1 million and $0.7 million, respectively, for consulting services under these Consulting Agreements. Pursuant to the termination of the final Consulting Agreement according to its terms on February 28, 2014, Mr. Caster is no longer serving as a consultant for the Company.