In exhange for keeping quiet about the Quixtar business opportunity, TEAM wanted the following from Quixtar:

A meeting with Quixtar had been scheduled for August 9th to
discuss open issues with the Team. Before the meeting occurred, there
was an emergency IBOAI meeting called to address IBO concerns about the
condition of the business and the business transformation. After the
IBOAI meeting, roughly a third of the board members felt so strongly
about what had been learned that we couldn’t go forward and continue,
in good faith, to represent the business. We had been assured numerous
times that if we had a problem going forward, we should approach
Quixtar/Alticor’s lead counsel to discuss terms of departure.

When we approached Quixtar/Alticor, Mike McCormick acted as the
spokesperson for the group. The group felt confident that Mike, because
of his long relationship with Alticor and Quixtar legal, would be the
most able to communicate our concerns in a win-win fashion. Mike served
as legal counsel for Randy Haugen and Don Wilson, and others, who were
defendants in the Procter & Gamble and other litigations. He worked
side-by-side with Quixtar/Alticor legal in these proceedings.

After we made it clear we were there to discuss an amicable
separation, and after Quixtar/Alticor had immediately rejected our
request to allow all Quixtar IBOs a choice of whether they wanted to
move forward with the new direction or not, McCormick presented to them
the nine point proposal listed below:

Conceptual Proposal

1.  Peaceful exit

2.  Joint positive communication – no disparagement

3.  IBOs currently within the Team system will have until December 31, 2007 to resign from Quixtar and sit out from any other MLM for a period of 60 days.  After December 31, 2007, Team system IBOs will revert to Quixtar rules in effect at that time.

4.  Bonuses will be prorated to the resignation date, including any year end bonuses.

5.  Any LOA that is currently not affiliated with the Team system will not be approached or communicated with by any Team representative.  Quixtar can prepare a statement that Team personnel/leadership will state if approached by any IBO not covered by this agreement.

6.  Team will continue to operate their current training system.

7.  No legal action of any kind against Team or affiliated IBOs will be instituted by Alticor or any of its subsidiaries, employees or representatives.  Also, Alticor/Quixtar will not use any of its connections with any federal, state or local governmental agencies to cause harm to Team.

8.  No communication or otherwise forecasting to current Quixtar IBOs that Team’s methods are unlawful or legally questionable.

9.  Neither side to communicate with any press entity regarding the separation beyond an agreed upon written statement.

After having the proposal for over an hour and a half, Quixtar’s attorneys returned to the room.  With no discussion or open dialogue whatsoever, they presented termination papers.

At this point we were forced to request that the courts compel Quixtar/Alticor to give IBOs the choice that should have been offered voluntarily.