2. Government Regulations and Independent Contractor Taxes - Each Advisor is an Independent Contractor and shall comply with all state and local taxes and regulations governing the sale of Strategic Advisors Inc. products. Independent Contractors are responsible for following regulations of the local, state and federal governments in the countries they operate in. The following Applies:

A. Advisors will not be treated as an employees for federal or state tax purposes, nor for purposes of the Federal Unemployment Tax Act, the Federal Insurance Contributions Act, the Social Security Act, State Unemployment Acts, State Employment Security Acts, or State Workers Compensation Acts. I understand and agree to pay all applicable federal and state self-employment taxes, sales taxes, local taxes, and/or local license fees that may become due as a result of my activities under this Agreement.

B. Each Advisor is required to provide on their Advisor application form either their Social Security number or Federal tax ID number. As the Advisor is a self-employed contractor, the Company does not deduct any personal taxes from commission checks.

C. At the end of the calendar year, Strategic Advisors is obligated by law to provide the Independent Advisor and the Internal Revenue Service with a form 1099 reporting the Advisors annual income from the Company. This is required for any Advisor with earnings in excess of $600.00 for the calendar year.

3. Representations By Advisors - Advisors are independent contractors, fully responsible for their own business procedures and are not to be considered purchasers of a franchise or employees of Strategic Advisors Inc. The agreement between Strategic Advisors Inc. and its Advisors does not create an employer/employee relationship, agency, partnership or joint venture between the Company and the Advisors. Additionally:

A. Advisors must not represent themselves in any way, orally or in writing, as being an agent, employee, or spokesperson of the company. Advisors have no authority to bind the Company to any obligation. Each Advisor shall hold Strategic Advisors Inc. harmless for any claims, damages or liabilities arising out of the Advisors own business practice. The Company will take aggressive action to insure that Advisors that violate this policy will be terminated and reported to the proper authorities.

B. Advisors will not use Strategic Advisors Inc. logos or copyrighted material without express written permission from the Company.

C. Advisors are responsible for any expenses, which result from their business operations, including, but not limited to, advertising, taxes, fees, legal costs and telephone expenses. Strategic Advisors Inc. does not accept collect telephone calls.

D. The Advisor may not use the company name on any written forms or documents (e.g. stationery, bank accounts, business signs) without stating "Independent Advisor" and prior approval by the company.

4. Product or Income Claims - Strategic Advisors Inc. Advisors agree to make no false or fraudulent representations about the company, its products, services, the compensation plan, or earnings potential. This is an exceptionally sensitive subject because of the unique and proven status of the Company's products. The Advisor must not make any claims for Strategic Advisors Inc. products or services, which are not supported by facts contained in official company literature. This will be strictly enforced and suspension of this independent contractor contract will be immediate upon reported or observed infractions. If the violation is proved valid your contract will be terminated.

5. Internet Spam - Unsolicited commercial e-mail (UCE) or Spam is absolutely prohibited on the Internet if it relates to the Company in any manner. This is a very strict policy and may result in the termination of you and your entire downline. Spam can cause damage to Company and all it's independent contractors.

6. Sponsor Responsibilities - Any Advisor who sponsors other Advisors must fulfill the obligation of performing a bona fide supervisory and training function on behalf of those sponsored Leaders must have ongoing contact, communications, and management supervision with their sales organization. Examples of such supervision may include, but are not limited to the following: newsletters, written correspondence, personal meetings, telephone contact, training sessions, accompanying individuals to corporate events, or sharing genealogy information with those sponsored.

7. Advisor Requirements - The new Advisor will receive an Advisor kit once he/she has paid to register as an Advisor. This kit includes valuable sales material, product training material, marketing information and other valuable information. The registration fee also provides for management services to include computer setup and management services. Once the preceding steps are accomplished the new Advisor is authorized to resell products and to enroll new Independent Advisors in the program. Advisors are not required to purchase an Asset Protection Plan to be able to collect commissions. However, it is highly urged that they do so at the earliest opportunity to be able to be fully experienced in the process of establishing an Asset Protection Plan.

8. Cancellation by Advisors - The Company will buy back from an Independent Advisor (who resigns) all unused and currently marketable products and sales materials purchased from the Company within 30 days from the date of receipt of merchandise first ordered (no longer where requred by law). Repurchase will be 90% of the Independent Advisor's net cost, less appropriate setoffs and legal claims. Any returns on the services are prorated to the end of the month the request is made. The initial setup of the asset protection plan is not refundable.

9. Partnerships or Corporation Requirements - A partnership or corporation may hold an Independent Contractor contract upon completion of the Advisor application form, and providing on that form in the appropriate space, a Federal tax ID number. However, an individual may not participate in more than one (1) Advisor membership of any kind. An Advisor may change status under the same sponsor from individual to partnership or corporation or from partnership to corporation with proper and complete documentation.

The person signing the application on behalf of a partnership or corporation must have the authority of the partnership or corporation for entering into the transaction. In addition, by signing for a partnership or corporation, you certify that no person with an interest of debt or equity in the business has had an interest in an Advisor membership in Strategic Advisors Inc. within six (6) months of the date of signature.

10. Networking Cooperation - It is strongly recommended that Advisors belonging to different networks cooperate with each other for mutual success. There are many benefits, which can be accrued from such cooperation. Strategic Advisors Inc. does not restrict a Advisor from belonging to another networking company. However only personally sponsored Advisors in Strategic Advisors Inc. may be given information or solicited to other business opportunities.

11. Transfer of Sponsorship - Strategic Advisors Inc. prohibits the transferring from one sponsorship to another. The integrity of the entire network organization is based on the strength of the structure with the network. Allowing for transfers from one sponsor to another lead to strife and disaster. To change sponsorships:

A. The only way that a Advisor will be allowed to transfer sponsorship lines is by written resignation to the company, at which time the Advisor may rejoin the network in six (6) months under a new sponsor.

B. The transferring Advisor however will not be allowed to transfer their downline or qualified position with them when they do this sponsorship transfer.

12. Death of a Advisor - Upon the death of a Advisor his/her rights to commissions and marketing position, together with the Advisor membership duties and responsibilities, shall pass to the successors in interest upon written notice to the Company. The process is:

A. In order to protect the company from fraud, Strategic Advisors Inc. requires an original certificate of death and certified copy of the will, trust or other device before allowing the transfer of the Advisor membership from the deceased Advisor to the named transferee.

B. The successor Advisor is required to execute a new Strategic Advisors Inc. Advisor Independent Contractor application. There will be a charge of $250 for the transfer of ownership.