YOUNG LIVING EUROPE B.V.€¦ · YOUNG LIVING EUROPE B.V. Policies and Procedures . United Kingdom....

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1 st March 2019 YOUNG LIVING EUROPE B.V. Policies and Procedures United Kingdom

Transcript of YOUNG LIVING EUROPE B.V.€¦ · YOUNG LIVING EUROPE B.V. Policies and Procedures . United Kingdom....

1st March 2019

YOUNG LIVING EUROPE B.V.

Policies and Procedures

United Kingdom

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TABLE OF CONTENTS: _______________________________________________________________________________________________ Section 1: Introduction 1.1 Welcome 1.2 Purpose 1.3 Policies Incorporated in the Distributor Agreement 1.4 Code of Ethics 1.5 Amendments/Acceptance Section 2: Becoming a Distributor 2.1 Requirements to Become a Young Living Distributor 2.2 Start Living Kit 2.3 Distributor Application 2.4 Web Applications 2.5 Telephone Enrolment Section 3: Operating Your Sales Organisation 3.1 Distributor Status 3.2 Account Types 3.3 Beneficial Interest in More than One Account and Duplicate Accounts 3.4 Actions of Household Distributors or Affiliated Parties 3.5 Actions of Upline Distributors 3.6 Corporations, Partnerships, Limited Liability Companies, Trusts, or other Business Entities 3.7 Sale, Transfer, or Assignment

3.7.1 Succession 3.8 Separation of a Young Living Distributor Business 3.9 Roll-Up of Marketing Organisation 3.10 Taxes 3.11 Guidelines and Deceptive Practices

3.11.1 Unauthorised Recruiting 3.11.2 Non-Solicitation 3.11.3 Non-Compete 3.11.4 Targeting Other Direct Sellers 3.11.5 Cross-Line Recruiting 3.11.6 Bonus Buying and Stacking

3.12 International 3.12.1 NFR (Not-For-Resale) 3.12.2 Anti-Bribery

3.13 Repackaging and Relabelling 3.14 Confidentiality Agreement 3.15 Reporting Policy Violations 3.16 Authorisation to Transfer and Disclose Personal Information 3.17 Authorisation to Take and Use your Photo or Video 3.18 Rank Recognition Section 4: Sponsor’s Responsibilities 4.1 Sponsoring 4.2 Sponsoring Online 4.3 On-going Supervision, Training, and Sales 4.4 Non-Disparagement 4.5 Privacy Section 5: Advertising 5.1 Use of Company Materials

5.2 Distributor-Developed Advertising Materials and Products 5.3 Advertising Claims and Representations 5.3.1 Product Claims

5.3.2 Income Claims 5.3.3 Compensation Plan Claims 5.3.4 Indemnification for Unlawful Advertising

Statements 5.4 Testimonial and Meetings 5.4.1 Testimonials 5.4.2 Meetings 5.5 Trademarks and Copyrights 5.6 Domain Names and E-mail Addresses 5.7 Internet Policy 5.8 Internet Classified Ad Sites, Auction Sites, Shopping Sites, or Order Fulfilment Stores Restricted 5.9 YLEO Personal Websites - MyYL 5.10 Commercial Outlets 5.11 No Price or Territory Restrictions 5.12 Trade Shows and Expositions 5.13 Media Enquiries Section 6: Sales Requirements 6.1 Product Sales and Sales Receipts 6.2 Non-Distributor Customers and Distributors 6.3 Customers and Sales Requirements 6.4 Excessive Purchases of Inventory Prohibited Section 7: Commissions and Bonuses 7.1 Commissions and Bonus Cheques 7.2 Recap Statements 7.3 Adjustments 7.4 Deductions/Maintenance Fees 7.5 Errors or Questions 7.6 Commissions, Bonuses and Credit on Account Section 8: Ordering 8.1 Ordering Methods

8.1.1 Phone 8.1.2 Fax 8.1.3 Mail 8.1.4 Young Living Website 8.1.5 E-mail

8.2 Essential Rewards programme 8.3 General Ordering Policies

8.3.1 Back Orders 8.3.2 Month-End Order Processing Cut-off 8.3.3 Back-Dating Orders

Section 9: Shipping 9.1 Shipping Methods and Charges 9.2 Shipping Discrepancies Section 10: Payment 10.1 Methods of Payment 10.2 Insufficient Funds 10.3 Commission and Bonus Release Form

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Section 11: Product Returns 11.1 Buy Back Guarantee (b2b)

11.1.1 Right of Withdrawal/Termination 11.2 Return Policy (Consumer)

11.2.1 Rights and duties of YL Distributors 11.1.2 Legal rights of Distributors and Customer(s) of Distributors 11.1.3 Product Kits 11.1.5 Return of Promotional Product(s)

11.3 Procedures for Returns 11.4 Return Address Section 12: Distributor Account Management 12.1 Changes to a Distributor Account

12.1.1 Sponsor Changes 12.1.2 Waiver of Claims 12.1.3 Sponsor Placement Programme

12.2 Downline Genealogy Reports & Confidentiality 12.3 Confidentiality Section 13: Dispute Resolution and Contractual Sanctions 13.1 Disputes between Distributors 13.2 Disputes between Young Living and Distributors

13.2.1 Choice of Law 13.3 Contractual Sanctions

13.3.1 Warnings and Sanctions 13.3.2 Termination

13.4 Appeals of Contractual Sanction Section 14: Inactivity, Reactivation, and Cancellation 14.1 Inactivity 14.2 Reactivation 14.3 Involuntary Cancellation or Termination 14.4 Voluntary Cancellation 14.5 Effects of Cancellation Section 15: Contact information 15.1 Contact Information Section 16: Notices & Miscellaneous 16.1 General 16.2 Methods 16.3 Receipt 16.4 Information 16.5 Delays 16.6 Partial Validity 16.7 Waiver 16.8 Titles Not Substantive

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UK Young Living EUROPE B.V.

(the “Company”, “we”, “our”, “YL” or “us”). Independent Distributor Policies and Procedures

UK-English

SECTION 1 INTRODUCTION 1.1 Welcome

Welcome to Young Living EUROPE B.V. ! We are pleased that you have chosen to join our Company. Young Living is dedicated to providing you with the best products and business opportunity that you can find anywhere. We all agree that the home-based business sector is the wave of the business future. The time that you invest in becoming familiar with our Company, including the Policies and Procedures, will make a significant difference in your business experience. In these Policies and Procedures, Young Living EUROPE B.V. is referred to as “Young Living”, “YL”, “us”, “we” or the “Company”; and the individual entering the Agreement (as defined below) is referred to as “you”, “the Applicant” or the “Distributor”. If you are a Distributor, your personal Distributor account along with the Downline that you build is referred to as your Sales Organisation. The term “Sponsor” refers to a Distributor’s immediate Upline Distributor. A Distributor account is referred to as being “active” if the Distributor enrolled as a new Distributor and purchased 50 PV in products within the previous 12 months and is “inactive” if he/she has not. The term “Enroller” is the Young Living Distributor who enrols a new Distributor into Young Living. An individual can be enrolled only once in 12 months. If any Distributor does not place a minimum order of 50 PV for 12 consecutive months, that Distributor is considered inactive. See Section 12.1.1 for further details. Contact Information: Young Living EUROPE B.V. . Peizerweg 97, 9727AJ Groningen, Netherlands

Website: www.youngliving.com 1.2 Purpose

The purpose of these Policies and Procedures is:

a. To set standards of acceptable business behaviour

b. To define the relationship between you, Young Living (YL), your Customers and other Distributors

c. To assist you in building and protecting your Young Living business

d. These Policies and Procedures are binding on you through the Young Living Distributor Agreement which comprises the Distributor Application Form, Terms and Conditions,

Compensation Plan and these Policies and Procedures.

1.3 Policies Incorporated in the Distributor Agreement

Throughout these Policies and Procedures, whenever the term “Agreement” is used, it refers collectively to the Young Living Distributor Application with Terms and Conditions (found on either our Website or on the hard copy “Young Living Distributor Application”), the Policies and Procedures, Privacy Policy https://www.youngliving.com/en_GB/company/privacy-policy and the Compensation Plan. These documents are incorporated by reference into the YL Distributor Agreement (in their current form and as amended by Young Living). It is the responsibility of each Distributor to read, understand, adhere to, and ensure that you are operating under the most current version of the Policies and Procedures. 1.4 Code of Ethics Young Living has established the following Code of Ethics to govern the Independent Distributor’s business. You are required to become familiar with and agree to abide by this code as a condition of extending your Independent Distributor relationship. Violations of the Code of Ethics or the Policies and Procedures may result in termination of your Distributor Agreement and your opportunity to participate in the Young Living business. Be sure that you understand and abide by the principles and policies of each of these code commitments. Code of Ethics

a. You will follow the highest standards of honesty and integrity in the development and operation of my Young Living business.

b. You will give prompt and efficient service to anyone to whom you have introduced Young Living’s products to.

c. You will make no claims for, or representations about any Young Living products, other than those claims or representations found in current Company literature or on labels, as allowed by law in my country.

d. You will not make negative or disparaging remarks about Young Living, Young Living founders, any Young Living competitor, or their people and products.

e. You will not engage in activities that may cause losses to Young Living or to any other Young Living Independent Distributor.

f. You will not use the Young Living trademark, trade name, logo, information, Distributor lists, literature, meetings, gatherings, or Young Living resources to further other business interests.

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g. You will perform all duties of a Sponsor and a leader as you build your Young Living business, including providing the necessary training and support.

h. You will respect the privacy of both my Upline and downline Distributor’s and Customers.

i. You will present the Young Living Compensation Plan accurately and honestly, clearly portraying the level of effort required to achieve success without exaggerating the financial possibilities.

j. You will not make any false statements about the available business opportunity when recruiting potential Distributor, nor shall you make any unrepresentative or exaggerated earnings claims.

k. You will abide by all rules, regulations, laws, and ordinances that are applicable to the operation of my Young Living business as a Distributor.

l. You will, in operating your Young Living business as a Distributor, comply with the "Consumer Code of Practice" and the "Code of Business Conduct" of the Direct Selling Association (DSA).

m. You will not recruit Young Living Distributors to other business opportunities.

1.5 Amendments/Acceptance

The Company may from time to time amend the terms and conditions of the Distributor Agreement, Policies and Procedures, Compensation Plan, and Product Price List as well as the Product List. The changes will become effective fifteen (15) days after first published by Young Living, unless they relate to your financial obligations, in which case the changes will only become effective sixty (60) days after written notice is given by Young Living. Such amendments or modifications shall be made known through official Young Living publications distributed to all active Distributors or posted to the web (e.g., e-News), unless they relate to your financial obligations, in which case they shall be notified to you in writing. If a Distributor is not willing to accept these changes, Young Living must be notified in writing prior to the change being effective. Any continued business, ordering, acceptance of a commission or bonus pay-out or any other benefit by a Distributor pursuant to this Agreement constitutes acceptance of this Agreement in whole with any and all amendments. SECTION 2 BECOMING A DISTRIBUTOR 2.1 Requirements to Become a Young Living Distributor To become a Young Living Distributor, each applicant must:

a. Be at least eighteen (18) years of age; b. An individual as young as 16 years old (a

“Minor”) may become a Distributor upon the following conditions: The Minor’s parent or

guardian must sign the Distributor Agreement and agree to take full responsibility for the Minor Distributor’s account along with the Minor. The Minor will be required to operate the account using a unique form of payment for purchases on the Distributor account (separate from the parent or guardian). The Minor must also re-sign the Distributor Agreement when the Minor turns 18 years old. Failure to re-sign within three months of his/her 18th birthday may result in a hold being placed on the Minor’s account.

c. Have a Residency in the UK and a valid National Insurance Number.

d. Read the Young Living Policies and Procedures, the Compensation Plan and other documents listed in 1.3;

e. Complete, Sign and submit a Distributor Agreement within 30 days of your enrolment. See 2.3 and 2.4 for how to enrol.

2.2 Start Living Kit The applicant will be recommended to purchase a Young Living Starter Kit, in order to be a more effective Distributor. The Starter Kits contains materials designed to familiarise new Distributors with Young Living’s products, services, sales techniques, sales aids, and other training materials. The kit includes samples of various products and promotional tools. Your only financial obligation under this Agreement is to pay for the maintenance fees set out in Section 7.4 should you earn a commission. 2.3 Distributor Application Applicants (not signing up over the website) must submit the “Distributor Agreement” (in short Distributor Application Form) to Young Living to become a Distributor. This Application Form may be submitted through mail or fax and received within 30 days of your enrolment for you to receive Distributor benefits. If the Distributor Application Form is not received within 30 days, your Distributor account will be placed on hold until the agreement is received. According to English law no orders may be placed until both parties have contractually agreed to the Distributor Agreement in writing, and Young Living EUROPE B.V. has received a fully completed and signed copy of the Distributor Agreement. We reserve the right to reject a Distributor Application at our own discretion. 2.4 Web Applications If you register via the website (www.youngliving.com) you will not need to submit a paper application. While your Sponsor may assist you in completing the online enrolment as a Distributor, you must personally review and agree to the online Distributor Agreement, Terms and Conditions, these Policies and Procedures, and the Compensation Plan.

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2.5 Telephone Enrolment You may enrol as a Distributor over the phone. However, you must submit a completed Distributor Agreement that is received at the Young Living EUROPE B.V. within 30 days of your telephone registration, as outlined in Section 2.3. If you are a Retail customer, you may enrol over the telephone. SECTION 3 OPERATING YOUR SALES ORGANISATION 3.1 Distributor Status As a Young Living Distributor, you are an independent sales contractor and are not a purchaser of a franchise or business opportunity. The Agreement between you and Young Living does not create an employer/employee relationship, agency, partnership, or joint venture. You have no authority (expressed or implied) to bind the Company to any obligation. You are encouraged to establish your own goals, hours, and methods of sale as long as you comply with applicable laws and the terms and conditions of the Distributor Agreement. Your activities as a Distributor shall include:

(i) placing orders for Young Living products and benefiting from wholesale pricing;

(ii) promoting and selling Young Living products to the general public;

(iii) sponsoring other Distributors; and (iv) receiving compensation for your sales and

sponsoring/training activities;

subject to and in accordance with the terms of the documentation referred to in Section 1.3 and these Policies and Procedures. You understand that the financial benefits associated with your participation in the Young Living organisation depend on your personal sales and the sales of your downline organisation. No rewards are payable for simply sponsoring or introducing others to the Young Living organisation. 3.2 Account Types Retail Customer (in short "Customer"): A Customer who chooses not to participate in the Young Living business opportunity, but rather desires only to purchase the products directly from the Company for personal consumption. Customers purchase products at the published Customer/retail price. Retail Customers’ purchases apply toward the Sponsor’s Organisation Group Volume (OGV). Thus, orders placed by any of your retail Customers will be included in the total sales volume for your entire organisation. Customers do not participate in the Young Living business or network marketing plan. Customers may not participate in the Essential Rewards programme. A Retail Customer may become a Distributor at any time by completing and submitting the “Distributor Application, Agreement and Enrolment Form”. Distributor:

A Distributor (you) may purchase products from Young Living at the published wholesale price and have the potential of earning commissions and bonuses based on qualification and achievement rank in the Young Living Compensation Plan. (See the published Compensation Plan details for specific information.) When enrolling in Young Living, you must read and agree to abide by and submit a completed “Distributor Application”. (See Section 2.) Member: Encompasses both account types, Retail Customer and Distributor. 3.3 Beneficial Interest in More than One Account and Duplicate Accounts You can have a financial interest, legal or equitable, in only one account, unless expressly permitted in this section. If Young Living finds that you have an unpermitted interest in multiple accounts, it will terminate your duplicate account(s), leaving only the account created first. You are specifically prohibited from creating duplicate accounts in an attempt to change lines of sponsorship, manipulate the Compensation Plan, or circumvent the Agreement in any way.

You may have a beneficial interest in more than one Distributor account if you receive an interest in another account as an inheritance (either through a direct inheritance or as beneficiaries of a trust) from another Distributor. In this case you must notify Young Living of the inheritance in writing (as specified in Sections 3.7 and 3.7.1) and seek approval from Young Living in writing for having a beneficial interest in multiple accounts. Young Living reserves the right, in its sole and absolute discretion and for any reason and at any time, to (1) deny you the option of owning an interest in your original account and an inherited account or to (2) deny you the right to earn the Generation and Diamond Leadership Bonuses on the inherited account (e.g., if Young Living determines you have not demonstrated the ability to operate two sales organisation by failing to engage in leadership activities such as contacting and training your downline, participation in meetings, increasing enrolments, and/or increasing PGV and OGV within the payment levels of your downline in the recent past). If Young Living denies you the right to have a beneficial interested in a second account that you received through inheritance, it may allow you a four-month grace period to sell your interest in one of your accounts. After that grace period the inherited account will be placed on hold or terminated. Young Living strongly encourages and prefers that Members work together with their spouse/partner (if applicable) in building a single sales organisation. However, due to divorce, separation, mutual agreement, etc., there may be an exception to this general rule. Beginning July 2, 2018, you and your spouse/partner may have separate accounts as long as the second account is sponsored as the first or second level to the other

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spouse’s account. Young Living will periodically audit these two accounts and may terminate the latter-created account if it is found, in Young Living’s sole discretion, that the latter-created account is used to manipulate the Compensation Plan, or the spouses are not complying with the 70% rule as outlined in Section 6.1. A joint sales organization will be treated as a joint tenancy with rights of survivorship.

If you are a minor who is at least 16 years of age or older, you must submit a hardcopy Distributor Agreement signed by you and by your parent or legal guardian. Your parent or legal guardian will be required to supervise your activities. If your parent or legal guardian is a Distributor, then

a. Your Distributorship is considered a second account separate from your parent or legal guardian’s account;

b. Your parent or legal guardian must be your Sponsor; and

c. Your parent or legal guardian cannot have a beneficial interest in your Distributor account.

3.4 Actions of Household Distributors or Affiliated Parties If any Distributor of your immediate household engages in any activity which, if performed by you, would violate any provision of the Agreement, such activity will be deemed a violation by you and Young Living may apply contractual sanction against you pursuant to these Policies and Procedures. Similarly, if any individual associated in any way with a corporation, partnership, LLC, trust or other entity (collectively “entity”) violates the Agreement, such action(s) will be deemed a violation by the entity, and Young Living may apply contractual sanction against the entity. Likewise, if a Distributor enrols in Young Living as an entity, each affiliated party of the entity will be personally and individually bound to, and must comply with, the terms and conditions of the Agreement. 3.5 Actions of Upline Distributors If any Upline Distributor encourages, aids, or supports a downline Distributor in any activity which, if performed by the Upline Distributor, would violate any provision of the Agreement (e.g., creating duplicate accounts or cross recruiting), such activity will be deemed to be a violation by the Upline Distributor and Young Living may apply contractual sanction against that Upline Distributor in pursuant to these Policies and Procedures. If such violations continue, Young Living reserves the right to terminate the Upline Distributor’s account. 3.6 Corporations, Partnerships, Limited Liability Companies, Trusts, or other Business Entities A partnership, limited liability company, or trust may at Young Living’s sole discretion become a Young Living Distributor by submitting to Young Living a partnership agreement, any and all up-to-date records filed at Companies Registry, or trust agreement along with a

properly completed Distributor Application Form. The Distributor Application Form must be signed by all of the shareholders, officers, directors, partners, or trustees. Such individuals are jointly and severally liable for any indebtedness or other obligation of the business entity to Young Living. The business entity must demonstrate that no part or participant within the entity has participation in another Sales Organisation because no individual may participate in more than one Young Living Distributorship in any form. A Distributor may change from individual ownership to a business entity by submitting the appropriate documentation mentioned above which may be accepted or declined at Young Living’s sole discretion. No individual may sell or otherwise transfer his interest in the relevant business entity without Young Living’s prior written approval. The approval of any sale or transfer shall not relieve that individual or business entity from the performance of any obligation arising under or in relation to its Distributor Agreement (except as otherwise agreed in writing). Young Living reserves the right to approve or disapprove any Distributor’s change of business names, formation of partnerships, companies, and trusts for tax, estate planning, and limited liability purposes. In addition, by submitting a Business Entity Registration Form, the Distributor is certifying that no person with an interest in the new business entity has had an interest in another Young Living Distributor ship within six (6) months of the submission of the certificate (unless it is the continuation of an existing Distributorship that is changing its form of doing business). 3.7 Sale, Transfer, or Assignment You may sell, transfer, or assign (collectively “Transfer”) your entire downline organisation by submitting a request to Young Living along with a $50 (; exchange rate from USD as per 1.Feb. 2018, subject to change) processing fee. For your request to be granted, the following criteria must be met:

a. Any sale/transfer of any organisation with OGV

50,000 or higher must be approved by Young Living in writing before submitting the form sale/transfer form to YL.

b. You and the receiving party must notify Young Living in writing (please use the prepared form) of your intent to transfer the Sales Organisation. This request must be signed by the seller/transferee and the receiver of the organisation. Both signatures on the sale/transfer document must be verified by a notary public.

c. Young Living must approve of the buyer prior to a sale/transfer.

d. The buyer or transferee must be (or must become) a qualified Young Living Distributor.

e. No changes in line of sponsorship can result from the sale or transfer.

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f. Before any transfer or sale will be approved, any debt obligations you may have with Young Living must be satisfied and paid in full.

g. If the receiving party has an existing downline, he/she must first Transfer that Sales Organisation or have a Transfer in place and approved by Young Living before accepting the new Sales Organisation.

h. Before any Transfer will be approved, you and the receiving party must each be in compliance with all the terms of the Agreement. The individual, to whom the Sales Organisation is sold and/or transferred, will be expected to meet leadership qualification in order for this request to be approved.

i. After the transaction, the transferring party must not retain any copies, digital or otherwise, of personal data belonging to the transferred sales organisation.

Young Living reserves the right to approve or disapprove your request to Transfer your Sales Organisation for any reason. You may not Transfer your Sales Organisation to any person or entity without Young Living’s written approval.

Young Living does not waive any violations of the Agreement, even though a violation may have occurred under a prior owner of your Sales Organisation. As a new owner of a pre-existing Sales Organisation, you may be responsible for violations of the Agreement made by the prior owner in connection with your Sales Organisation. Any action that may be taken on a Sales Organisation with the previous owner under Section 13 may carry over to you.

3.7.1 Succession Upon death or incapacitation, your rights to commissions, bonuses, and downline organisation, together with all Distributor responsibilities, will pass to your successor(s), if they qualify as a YL Distributor. The successor(s) must present Young Living with proof of death or incapacitation, along with appropriate legal documentation and a properly completed Distributor Application and Agreement. If the transfer is approved, the beneficiary will be eligible to collect all future commissions and bonuses of your Sales Organisation provided that he/she meets all of the qualifications necessary under the Compensation Plan. Distributor accounts acquired under succession will not receive the same recognition benefits of original Distributor account owners who built the original organisation; however, the beneficiary may earn recognition benefits as they fulfil the Distributor responsibilities and continue to grow the Distributor organisation. If the beneficiary already has an existing Distributorship, he/she will be subject to the terms in Section 3.7 Young Living reserves the right to approve or reserve a succession transfer 3.8 Separation of a Young Living Distributor Business Young Living Distributors sometimes operate their Young Living businesses as husband/wife partnerships, regular

partnerships, companies, or trusts. At such time as a marriage may end in divorce or a company, partnership, or trust (the latter three entities are collectively referred to herein as ‘entities’) may dissolve, arrangements must be made to assure that any separation or division of the business interest is accomplished so as not to adversely affect the interests and income of other business’ up or downline sponsorship. Unless a course of conduct suitable to all the parties (including Young Living) is agreed, Young Living may terminate the Distributor Agreement following the termination of the marriage or the dissolution of the business entity in question, pursuant to Young Living Policies and Procedures. During the proceedings of a divorce or entity dissolution, the parties must adopt one of the following methods of operation:

a. One of the parties may, with consent of the other(s), operate the business pursuant to a notarised assignment in writing whereby the relinquishing party(ies) authorise(s) Young Living to deal directly and solely with the other party(ies).

b. The parties may continue to operate the Young Living business jointly on a “business-as-usual” basis, whereupon all compensation paid by Young Living will be paid in the joint names of the Distributors or in the name of the entity to be divided as the parties may independently agree among themselves.

c. The parties may operate the business pursuant to a court order involving parties.

d. If one of these requirements is not met, Young Living will maintain the status quo as to how commissions are paid.

Young Living will not divide your Sales Organisation with a divorcing spouse or with affiliate parties of a dissolving business. Similarly, Young Living will not split your commission or bonus checks between you and a divorcing spouse or affiliate parties of a dissolving entity. Young Living will recognise only one sales organisation and will issue only one commission cheque per Young Living business per commission cycle. Commission cheques shall always be issued to the same individual or entity, unless agreed by all parties that the commissions will be due and paid to another party or by order of a court having jurisdiction over Young Living. If you have completely relinquished all of your rights as a former spouse or a former affiliate party to a Sales Organisation, you are free to enrol as a new Distributor under any Sponsor of your choosing. However, in such case you will have no rights to any Distributors or Customers from your former Sales Organisation. In that instance, you must develop the new business in the same manner as would any other new Distributor. 3.9 Roll-Up of Marketing Organisation When a vacancy occurs in a marketing organisation due to the cancellation or termination of a Young Living business, each Distributor in the first level immediately below the terminated Distributor on the date of the cancellation will be moved to the first level (“front line”) of the terminated Distributor’s Sponsor. For example, if A

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sponsors B, and B sponsors C1, C2, and C3, if B terminates her business then C1, C2, and C3 will “roll-up” to A and become part of A’s first level. Young Living also reserves the right, in its sole discretion, to sell the Sales Organisation that has been cancelled or terminated for inappropriate behaviour. 3.10 Taxes The Distributor is personally liable for any taxes or duties required by law, including but not limited to income tax, national insurance contributions and the proper collection and payment of VAT on sales and commissions. The Distributor will keep all such proper records as are necessary to ensure the proper assessment and payment of any such taxes and/or duties. 3.11 Guidelines and Deceptive Practices

3.11.1 Unauthorised Recruiting

During your Distributorship with Young Living and after your Distributorship has terminated, you may engage in other noncompeting business ventures; however, you may not take advantage of your knowledge of, or association with, other Young Living Distributors, including your knowledge resulting from or relating to your Upline and downline in order to promote and expand such other business ventures. Such conduct constitutes an unwarranted and unreasonable interference with the business of other Distributors and Young Living.

3.11.2 Non-Solicitation To qualify for compensation under Young Living’s Compensation Plan, you have the ongoing responsibility to help, educate, train, motivate, and assist the members in your sales organisation. You also have the responsibility to promote Young Living products and the Young Living income opportunity. Young Living and its Distributors have made a great investment in the establishment of organisations consisting of Retail Customers and Distributors, of which you will benefit. This constitutes one of Young Living’s most valuable assets. Young Living reserves the right to cease paying compensation to any Distributor, including you, who recruits any Young Living retail customers, or Distributors to participate in a Competing Business Venture (defined below). To protect the efforts of all Distributors in building and maintaining their sales organisations and Customer bases, and in order to protect Young Living’s interest and investment in the overall customer base, Distributors and all members of their immediate household are required to abide by the following policies:

a. Non-Solicitation of Young Living Retail Customers and/or Distributors:

(i) During the period that this Agreement is in force, you and all members of your immediate household are prohibited from directly, indirectly, or through a third party, recruiting any Young Living retail customers and/or Distributors to participate in

a Competing Business Venture, regardless of who initiates the contact.

(ii) For a period of twelve months after cancellation or termination for any reason of this Agreement, you and all members of your immediate household are prohibited from directly, indirectly, or through a third party, recruiting, regardless of who initiates the contact, any Young Living retail customers and/or Distributors to participate in a Competing Business Venture:

(1) who were in your sales organisation or upline at any time during the term of his or her association with Young Living;

(2) with whom you had contact during the term of your association with Young Living;

(3) whose contact information (name, address, phone number or email address, etc.) you or members of your immediate household obtained at any time during the term of your association with Young Living; or

(4) whose contact information (name, address, phone number or email address, etc.) you or members of your immediate household obtained at any time from another person who obtained the information because of any other person’s association with Young Living.

As used herein, the term “Competing Business Venture” means any business venture offering a similar business opportunity or similar or alternative products or services to those offered by Young Living. The prohibitions under clauses (a)(i) and (a)(ii) above include but are not limited to presenting or assisting in the presentation of Competing Business Ventures to any Young Living retail customers and/or Distributors and implicitly or explicitly encouraging any Young Living retail customers and/or Distributors to join any Competing Business Ventures that would detract from their relationship with Young Living (as determined by Young Living in its sole discretion). It is a violation of this policy to recruit any Young Living retail customers and/or Distributors to participate in a Competing Business Venture even if you do not know that the prospect is also a Young Living retail customers and/or Distributors. It is your responsibility to first determine whether the prospect is a Young Living retail customers and/or Distributors before recruiting the prospect to participate in a Competing Business Venture. As used herein the term “recruit” or “recruiting” means: 1) to enrol, enlist, or solicit an individual or entity to join a business, program or organisation, or attempt to do so; 2) to promote, influence or encourage an individual or entity to join a business, programme or organisation, or attempt to do so; or 3) to present, or participate or assist in the presentation of, a business, programme, organisation or its products to an individual or entity. Such recruitment constitutes a violation of this provision whether or not the individual or entity ultimately leaves their relationship with Young Living. To constitute recruiting, such efforts or attempts may be performed either directly through personal contact (including, but not limited to electronic and social media means) or indirectly through a third party.

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The term “immediate household,” as used herein, refers to married couples and other persons residing in the same home. With respect to Young Living Retail Customers and/or Distributors which are entities (e.g., corporations, tax exempt entities, trusts, etc.) rather than individuals, “immediate household” means the shareholders, owners, directors, officers, members, trustees, responsible parties, etc. of such entities and persons married to or residing in the same home with the persons who are the shareholders, owners, directors, officers, members, trustees, responsible parties, etc. of such entities. b. During the period that this Agreement is in force, and for a period of twelve months after the cancellation or termination thereof for any reason, you and all members of your immediate household are further prohibited from the following: (i) Producing any literature, tapes or promotional material of any nature (including but not limited to websites and emails) which is used by you or any third person to recruit Young Living Retail Customers and/or Distributors to participate in a Competing Business Venture; (ii) Offering any non-Young Living products, services or Competing Business Ventures in conjunction with the offering of Young Living products, services or income opportunity or at any Young Living meeting, seminar, launch, convention, or other Young Living function. c. Violation of any provision of this Section 3.11.2 constitutes your voluntary resignation and cancellation of this Agreement, effective as of the date of the violation, and: (i) The forfeiture by you of all commissions or bonuses payable for and after the calendar month in which the violation occurred. (ii) If Young Living pays any bonuses or commissions to you after the date of the violation, all bonuses and commissions for and after the calendar month in which the violation occurred shall be refunded to Young Living. (iii) Young Living may seek and obtain both injunctive relief and damages for violations of this Section 3.11.2. Young Living, may, at its option, elect to enforce this Policy by lawsuit in a court of competent jurisdiction in the Netherlands rather than by arbitration. (iv) In addition to being entitled to a refund of bonuses and commissions and to damages as described above, in the event a person or entity violates this Section 3.11.2, Young Living and any Distributor that experiences an adverse financial impact as a result of such person’s or entity’s violation of this Section 3.11.2 shall be entitled to an accounting and repayment of all profits, compensation, commissions, remunerations or other benefits which the person or entity directly or indirectly receives and/or may receive as a result of, growing out of, or in connection with any violation of this Section. Such remedy shall be in addition to and not in limitation of any damages, or injunctive relief or other rights or remedies to which Young Living is or may be entitled at law or in equity. (v) You recognise that the restrictions herein are reasonable and necessary to protect the legitimate

business interests of Young Living and other Distributors, and that such restrictions will not prevent you from working or otherwise earning a living. d. Violations of this Section 3.11.2 are especially detrimental to the growth and sales of other Distributor’s Independent Young Living businesses and to Young Living’s business. Consequently, Distributors who have knowledge that any member has violated this Policy must immediately report that information to Young Living’s Policy Administration Department. The failure of a Distributor to report such information to Young Living will also constitute a violation of this policy. The names of those reporting violations of this Section 3.11.2 will be held in confidence.

3.11.3 Non-Compete If, during the term of the Agreement, you engage in a non-Young Living direct selling program, you will ensure that you operate your Young Living Sales Organisation separately and apart from your non-Young Living program. To that end: a. You may not display Young Living promotional materials, sales aids, products, or services (“Promotional Materials”) with or in the same location as any non-Young Living Promotional Materials, or in any manner or format that enables a viewer to contemporaneously view Young Living Promotional Material and non-Young Living Promotional Material. For example, you may not present Young Living Promotional Material and non-Young Living Promotional Material on or in the same website, blog, tweet, post, text, brochure, or other printed marketing material, signage, or electronic or other communication. b. You may not offer Young Living programmes, opportunities, products, or services to prospective or existing Young Living customers or Distributors in conjunction with any non-Young Living programmes, opportunities, products, or services. c. You may not offer any non-Young Living programmes, opportunities, products, or services at any Young Living-related meeting, seminar, convention, webinar, teleconference, or other event. Notwithstanding the foregoing, during the term of the Agreement and for a period of six (6) months after the cancellation, expiration, or termination by either party for any reason of the Agreement, you agree not to directly or indirectly serve in any capacity as a member, distributor, representative, consultant, employee, agent, officer, director, shareholder, partner, seller, or owner of or with another multilevel marketing, network marketing or direct sales company, network, business, or opportunity that promotes, sells, markets, or distributes Essential Oil as a wellness, health, beauty, nutritional, or life-style product or that engages in any business competitive to Young Living in any city, county, state, region, country, or other recognised geographic area where Young Living does business. The term “Essential Oil” will mean an extract, distillation, or derivative, in any amount, of any herb or plant grown, harvested,

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processed, promoted, identified as a future Young Living product, marketed, or sold by Young Living during the term of the Agreement. Reaching the rank of Diamond and above is very prestigious and requires a significant time commitment to Young Living. Additionally, Distributors who have achieved the rank of Diamond and above are privy to additional Young Living confidential and trade secret information. To achieve this rank and participate in the Diamond Leadership Bonuses, it is important to be an example in all facets of the Young Living business and be dedicated to Young Living. Accordingly, notwithstanding the foregoing, during the term of the Agreement and for a period of six (6) months after the cancellation, expiration, or termination by either party for any reason of the Agreement, once you have achieved the rank of Diamond or above, you will not directly or indirectly serve in any capacity as a Distributor, representative, consultant, employee, agent, officer, director, shareholder, partner, seller, distributor, or owner of or with any other multi-level marketing, party planning, or other direct sales company, regardless of the type of products or services offered by that new entity. This restriction applies to any geographic market which you (or your sales organisation) serviced or within which you (or your sales organisation) physically worked during the term of this Agreement. Any Distributor who has achieved the rank of Diamond and is violating this policy as of July 2nd, 2018 will be given a grace period until December 1, 2018 to comply with this policy. Diamond ranking Distributors may, however, purchase products from other multi-level marketing, party planning, or other direct sales company companies solely for their personal use. You agree that Young Living has a protectable interest in its good will, customer-base, distributor network, Confidential Information and trade secret information. You further acknowledge that any breach of your obligations under Sections 3.11.1, 3.11.1.2 and 3.11.1.3 of the Agreement would cause immediate and irreparable harm to Young Living for which monetary damages and other legal remedies could not adequately compensate. You further acknowledge that the restrictions set forth in Sections 3.11.1, 3.11.1.2 and 3.11.1.3 of the Agreement are reasonable and necessary to protect, maintain and preserve the legitimate business interest of Young Living and other Distributors and restrict your conduct only to the extent necessary to protect, maintain, and preserve such business interests. You further warrant that you understand the legal and other consequences of entering into the covenants and agreements contained in Sections 3.11.1, 3.11.1.2 and 3.11.1.3 of the Agreement and that the enforcement of these provisions will cause no undue hardship to you. You agree that the restrictions herein will not prevent you from working or otherwise earning a living. If any restriction contained in Sections 3.11.1, 3.11.1.2 and 3.11.1.3 of the Agreement is deemed to be unenforceable by a court of competent jurisdiction, you agree that such court may modify and enforce such

restrictions to the extent it believes to be reasonable under the circumstances existing at that time.

3.11.4 Targeting Other Direct Sellers Young Living does not condone Distributors specifically or consciously targeting the sales force of another direct sales company to sell Young Living products or to become Distributors for Young Living. Nor does Young Living condone the solicitation or enticement of Distributors of the sales force of another direct sales company to violate the terms of their contract with such other company. Should a Distributor engage in such activity, the Distributor bears the risk of being sued by the other direct sales company. If any lawsuit, arbitration or mediation is brought against you alleging that you have engaged in inappropriate recruiting activity of its sales force or Customers, Young Living will not pay any of your defence costs or legal fees, nor will Young Living indemnify you for any judgment, award, or settlement.

3.11.5 Cross-Line Recruiting Actual or attempted cross-line recruiting or sponsoring is strictly prohibited and will not be tolerated. “Cross-line recruiting” is defined as

a. the enrolment, indirect or otherwise, of an individual or entity that already has a current Distributorship with Young Living, or who has had an Agreement within the preceding six (6) calendar months, within a different line of sponsorship,

b. training current Young Living Distributors from different lines of sponsorship how to change sponsors in a non-permitted way in order to facilitate their move to your organisation; or

c. aiding, encouraging, or facilitating the actions outlined in a. or b. of this definition. The use of a spouse’s or relative’s name, trade names, DBAs (Doing Business As), assumed names, corporations, trusts, ID numbers, or fictitious ID numbers to circumvent this policy is prohibited. You shall not demean, discredit, or defame another Young Living Distributor especially in an attempt to entice another Distributor to become part of your marketing organisation. Young Living reserves the right to terminate your Sales Organisation for failure to comply with this policy.

3.11.6 Bonus Buying and Stacking Bonus buying and stacking are material breaches of these Policies and Procedures and are strictly and absolutely prohibited and may result in the termination of your Distributorship. Bonus buying means, to purchase inventory that is not needed for consumption or sale, but is purchased with the intention to reach a bonus or increase the rank. “Bonus Buying” also includes

a. the enrolment of individuals or entities without their knowledge of and/or execution of a “Distributor Application, Agreement and

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Enrolment Form” by such individuals or entities;

b. the fraudulent enrolment of an individual or entity as a Distributor or Customer;

c. the enrolment or attempted enrolment of non-existent individuals or entities as Distributors or Customers (phantoms); or

d. the use of a credit card by or on behalf of a Distributor, prospective Distributor Customer when the Distributor or Customer is not the account holder of such credit card;

e. bank transfer without being the owner of that bank account, or using one’s own bank details on someone else’s YL account;

f. the use of a debit card by or on behalf of a Distributor, prospective Distributor or Customer when the Distributor or Customer is not the account holder of such debit card; or

g. other activities which the Company believes to be illegal or unfit.

The term “Stacking” includes: h. the failure to transmit to Young Living, or the

holding of a Distributor Application and Agreement in excess of two (2) business days after its execution;

i. the placement or manipulation of Distributor Applications and Agreements for the purpose of maximising compensation pursuant to Young Living’s Compensation Plan;

j. providing financial assistance to Distributors, buying products, or drop shipping through another’s account for the purpose of increasing the pay-out of your Sales Organisation.

3.12 International As Young Living develops an increasingly international presence, careful attention must be given to country-specific legal and tax considerations if your developed downline is in other countries. Compliance with foreign laws regarding intellectual property, data protection, customs, taxation, literature content, and other direct selling guidelines is critical to successful international expansion. There are no territorial restrictions upon the sale of products by the Distributor pursuant to the Agreement in the United Kingdom but the Distributor may only solicit or otherwise actively encourage or pursue sales of the Company’s products overseas (that being anywhere other than the United Kingdom (including Northern Ireland and the Channel Islands), provided that it does so in one of the countries listed in the Young Living’s official Literature or on the Website and obtains the correct paperwork and Distributor Agreement from the Company for that country. Because unauthorised pre-market opening activity may jeopardise the Company’s ability to enter a new market and result in loss of opportunity for many other Distributors. Because of the severe possible consequences, those how engage in unauthorised premarket opening activity will be subject to disciplinary measures, possible leading to termination. those who engage in unauthorised pre-market opening activity will be subject to disciplinary measures, possibly leading to termination. You are not

authorised to register product, trade names, or IP addresses in any country for or in behalf of Young Living. You are not authorised to register product, trade names, trademarks, patents, web domains, or IP addresses in any country for or on behalf of Young Living. Anyone in violation of this clause 3.14 agrees to indemnify the Company for any such activity that damages the Company including, but not limited to, loss of profit, loss of goodwill, any damages, and reasonable attorney’s fees. If a Distributor desires to sponsor internationally in a country officially recognised as open, certain requirements must be met. A Distributor must: a. Read and understand the Policies and Procedures in place for the country into which they are sponsoring; b. Agree to follow set Policies and Procedures for every country in which you wish to operate; c. Must be a Distributor abiding by all Policies and Procedures wherever sponsoring; d. Agree to follow all company Policies and Procedures for this country; e. Agree to follow any and all applicable laws of such country; f. Agree to any tax withholdings and/or tax payments that may be required for that country; g. Agree to a foreign currency exchange fee that will be set from time to time by the Company, and h. Agree to sign up any prospective Distributor using the Young Living approved Distributor Agreement of that individual’s home country. Distributors will not import or sell products into any country where Young Living is not formally open for business or where the Young Living products are not legally importable or saleable in that jurisdiction. Distributors will follow all laws in any country into which they sponsor, including, but not limited to, all direct selling laws, all solicitation laws, all advertising laws, all claims laws, all tax laws, and any other laws that apply to operating a Distributorship in that country. Distributors may sponsor and/or enrol Distributors globally; however, Distributors may only market and sell products in countries that are legally registered with the government for business activity. Only products that have been registered for sell in that same country may be promoted and sold. Distributors may not import products into any country that is not legally importable or saleable. You agree to follow all laws in any country into which you sponsor Distributors, including, but not limited to, all direct selling laws, all solicitation laws, all advertising laws, all claims laws, all tax laws, and any other laws that apply to operating a Sales Organisation in a foreign country.

3.12.1 NFR (Not-For-Resale) In some countries, Distributors and Customers may purchase Young Living products on a not-for-resale basis as Customers, in which case the Distributors will not market or advertise directly or indirectly the Young Living Product. This product, if so allowed, can only be used by the purchaser and not resold.

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If you are not a resident of the United States, then you agree that all services you perform in connection with your Young Living business are performed outside the United States. If you perform services within the United States in connection with your Young Living business, you agree to and will contact Young Living at [email protected] within 30 days of performing such services to report the time you spent in the United States on business activities in connection with your Young Living business.

3.12.2 Anti-Bribery You and your agents, employees, or consultants must not pay or give, or offer or promise to pay or give, any money or anything of value to any government official or employee, political party, or candidate for political office (collectively referred to as "Government Recipient")—or to any person, while knowing or having reason to know that all or a portion of such money or thing of value will be paid or given to, or offered or promised to, directly or indirectly, any Government Recipient—for purposes of obtaining an unfair advantage or influencing any act or decision of a Government Recipient or inducing a Government Recipient to use his, her, or its influence with the government or instrumentality thereof to affect or influence any act or decision of such government or instrumentality; and you will cause your employees, officers, agents, and sub-consultants to do likewise. 3.13 Repackaging and Relabelling You may not re-label, alter the labels of, repackage, or refill any Young Living product. Young Living’s products must be sold in their original containers only. Young Living strongly recommends that you do not use Young Living products as ingredients in or components of any product for resale. If a Distributor uses Young Living products as an ingredient of any product for resale, the Distributor is strictly prohibited from using Young Living trademarks or logos in conjunction with selling such product, and it is the sole responsibility of the Distributor to ensure compliance with local laws regarding registration, notification and/or labelling. Relabelling or repackaging could result in severe criminal penalties. Violation of this section may subject a Distributor to contractual sanctions as outlined in Section 13.3. Additionally, you agree to indemnify Young Living against any harm resulting from use of Young Living products as an ingredient and the repackaging or relabelling of any of its products. 3.14 Confidentiality Agreement During the term of this Agreement, Young Living may supply Information that is of a confidential or proprietary nature, this includes, but is not limited to, genealogical and organisation reports, Customer lists, Customer information developed by Young Living or developed for and on behalf of Young Living by Distributors (including,

but not limited to, Customer and Distributor profiles, personally identifiable information and product purchase information), member lists, manufacturer and supplier information, business reports, commission or sales reports, marketing strategies and plans, product formulae, product information, promotional information and other financial and business information (“Confidential Information”). All Confidential Information (whether in written, oral, or electronic form), is transmitted to Distributors in strictest confidence on a need-to-know basis for use solely in that Distributor’s Young Living business. In certain instances (for examples, with respect to promotional information supplied to high ranking Distributors in advance of the applicable promotions) you may not share such information within your Sales Organisation until the promotion is disclosed to all members by Young Living. You shall keep such information confidential, adopt reasonable security practices to safeguard the confidentiality of the information and must not disclose any such information to a third party directly or indirectly. You and your Sales Organisation agree to indemnify Young Living against damages incurred from any and all such unauthorised disclosures caused by you. You must not use or disclose the information to compete with Young Living or for any purposes other than for promoting Young Living’s programme and its products and services. You may use and disclose the Confidential Information only in strict accordance with the conditions and restrictions that Young Living may require from time to time at its sole discretion (for example, high ranking Distributors may not disclose promotional information made available early to them to anyone else including within their downline, until Young Living makes such promotional materials generally available to all Young Living members. Upon cancellation, expiration, or termination by either party, for any reasons of the Agreement, you must discontinue the use of such Confidential Information and destroy or promptly return to Young Living any Confidential Information in your possession. Without limiting your obligations as set forth in this Section 3.14, Young Living my further require a signed nondisclosure agreement before releasing any business information to you and may require you to certify that you have returned or destroyed all Confidential Information upon termination of your Distributorship. In the event of the cancellation, expiration, or termination by either party for any reason of the Agreement, the obligations contained in this section 3.14 survive and are subject to legal enforcement injunction, damages and all other available remedies. You further agree that in the event Young Living prevails in any legal action to enforce its rights under this Section 3.14, Young shall be entitled to all costs and reasonable attorney’s fees incurred in enforcing its rights under this section 3.14. 3.15 Reporting Policy Violations

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You should report any violations of these Policies and Procedures by any Distributor to the Young Living Distributor Compliance Department by emailing [email protected] or calling Member Services EUROPE B.V.at 0800 9179438 (free from a UK landline). 3.16 Authorisation to Transfer and Disclose Personal Information In order to provide support for your sales organisation, you authorise Young Living to disclose personal and/or confidential information provided to Young Living in connection with your sales organisation or that you have developed as a result of your activities as a Distributor. You authorise Young Living to transfer and disclose this information to its parent and affiliate companies, to your upline to ensure proper upline support to you and your sales organisation, and to applicable government agencies or regulatory bodies if required by law. You also authorise Young Living to disclose your personal contact information to members of your downline. You further authorise Young Living to use your personal information for Distributor recognition and marketing materials. 3.17 Authorisation to Take and Use your Photo or Video By becoming a Distributor of Young Living, you consent to having your image captured in photographs or videos at various Young Living-sponsored events by Young Living staff and to have those images used by Young Living as they see fit in advertising and marketing materials. You will not be compensated for this usage. If you have a religious or moral objection to having your picture taken or appearing in a video, it is your responsibility to notify a member of Young Living’s staff at the event where photographs and videos are being taken. The provisions of this section will permanently survive the term of the Agreement. You give your consent to Young Living:

a. storing copies of the photograph for the Specific Purposes or

b. to it transferring the photograph and my contact details to a destination outside the European Economic Area (EEA) or storing them at a destination outside the EEA such as the U.S.A. You will not be compensated for this usage.

3.18 Rank Recognition The Young Living Compensation Plan pays compensation based on different ranks and the criteria set forth in that plan. Each month you may qualify for payment according to the rank in which you qualify. Distributors are recognised by Young Living in various ways and at various times as they achieve certain ranks. In order to be recognised at and enjoy the perks of a new, higher rank that is Silver or above, you must qualify for that rank (or above) for three consecutive months. You will be

recognised as being at that new, higher rank beginning in the fourth month. In order to maintain recognition at a rank of Silver or above, after initially qualifying for that rank, you must re-qualify for that rank (or above) again within six months of the last month in which you qualified for that rank. If you fail to re-qualify for a rank for six consecutive months, then you will be recognised at the highest rank you qualified for during that six months period rank on the seventh month and be required to re-qualify for three consecutive months before you can be recognised at the higher rank again. In August 1, 2018, all Distributors will be recognised at the highest rank they have achieved as of July 2018 and will be deemed to have initially qualified for that rank, meaning they will not be required to achieve that rank for three consecutive months to be recognised at that rank. To continue to be recognised at that rank, however, they must maintain that rank, as outlined in this section. SECTION 4 SPONSOR’S RESPONSIBILITIES 4.1 Sponsoring All Distributor have the right to sponsor others in Young Living. Each prospective Distributor has the ultimate right to choose his or her own Sponsor. If two Distributors claim to be the Sponsor of the same new Distributor or Customer, the new Distributor has the right to choose between the two within the first 30 days. After that time, Young Living will regard the first application received by Young Living as binding. When sponsoring a new Distributor, you must provide the most current version of these Policies and Procedures and the Compensation Plan before he/she signs a Distributor Agreement or ensure that such individual has online access to these materials. 4.2 Sponsoring Online When sponsoring a new Distributor through the online enrolment process, you may assist the new applicant in filling out the enrolment materials. However, the applicant must personally review and agree to the online Distributor Agreement, these Policies and Procedures, and the Compensation Plan. You may not fill out the online application and Agreement. 4.3 On-going Supervision, Training, and Sales As a Sponsor, you are expected to educate, train, monitor and communicate with your Sales Organisation. This may be done through letters, newsletters, meetings, telephone contacts, voice mail, electronic mail, in-person trainings, webinars and by accompanying enrolees to Young Living’s training meetings. If you feel you are not getting the necessary level of support from your sponsor, you are encouraged to consult with your next upline leader or call Member Services at 0800 9179438 (free from a UK landline). As a sponsor, you also agree to make your contact information (telephone number/email address) available to his/her downline for training and support purposes.

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You should monitor the members in your downline to ensure that they do not make improper product or business claims or engage in any illegal or inappropriate conduct that violates the Agreement. It is important to remember that each Distributor is independent and responsible for his or her distributor account and cannot expect the Sponsor or upline Distributor to build a Sales Organisation for him/her. As a Sponsor, you also agree to make your contact information (telephone number/email address) available to your downline for training and support purposes. As you progress through the various levels of leadership, you will become more experienced in sales techniques, product knowledge, and understanding of the Young Living programme. In that event, you may be called upon to share this knowledge with lesser experienced Distributors within your downline. 4.4 Non-Disparagement In setting the proper example for your downline, you must not disparage, slander, or defame other Young Living Distributors, Young Living’s products, the Compensation Plan, or the Company’s employees. Such disparagement constitutes a material breach of these Policies and Procedures and may result in termination of your Distributorship. 4.5 Privacy You, as Data Controller of personal information of other Young Living members, must take appropriate steps to safeguard and protect all personal information provided to you by Distributors and customers in the operation of your Sales Organisation in accordance with the Young Living Privacy Statement available at www.Youngliving.com. You must respect the privacy of your Sales Organisation and accept any e-mail or other similar “opt outs” passed on to you from your Sales Organisation and remove the details from contact lists or data collections. Personal data (including but not limited to addresses, e-mail etc.) obtained through Young Living sources (e.g. Virtual Office, Genealogy reports, etc.) may only be used for purposes as described in section 4.3 regarding your responsibility as a Sponsor, unless you have the explicit consent from a member to contact the member in non-Young Living related matters. SECTION 5 ADVERTISING You must not make false or fraudulent claims about Young Living’s products, the Compensation Plan, or its income potential. 5.1 Use of Company Materials To prevent inadvertent errors or illegal claims, you should strive to use the current Young Living marketing materials, literature and official claims and text specific to the country where used, for advertising and describing

Young Living’s products or programmes. The materials must be used in context so as not to be misleading. 5.2 Distributor-Developed Advertising Materials and Products Young Living encourages its Distributors to promote its products through use of Young Living produced literature. This material is copyrighted and should not be reproduced without written permission. Advertising through television and/or radio is strictly forbidden. Advertising through faxes, mailings, emails, newsletter or the internet must be done in accordance with all applicable laws. Distributors are responsible for knowing and complying with all such laws. If you choose to produce or use advertising materials that were no developed by Young Living, you must clearly identify that the material is from an “Independent Distributor” or “Independent Distributor” and not Young Living. Any use of advertising materials not product by Young Living must be compliant with all applicable laws and these Policies and Procedures, particularly Section 5.3. Such material must be produced in a professional and tasteful manner. Material must not be used that reflects poorly upon Young Living. Violation may subject a Distributor to contractual sanctions as outlined in Section 13.3. You hereby assign with full title guarantee all intellectual property rights including copyright throughout the world subsisting in such materials in each case for the whole term including any renewals, reversions, revivals and extensions and together with all related rights and powers arising or accrued, including the right to bring, make, oppose, defend, appeal and obtain relief (and to retain any damages recovered) in respect of any infringement, or any other cause of action arising from ownership, of any of these assigned rights, whether occurring before, on, or after the date of the Distributor Agreement. You, being the sole author of such materials, waives absolutely all moral rights arising under the Copyright, Designs and Patents Act 1988 and, so far as is legally possible, any broadly equivalent rights he may have in any territory of the world. Violations may subject a Distributor to the sanctions allowed under these Policies and Procedures or the Distributor Agreement. Any use of advertising materials not produced by Young Living must be compliant with all applicable laws and these Policies and Procedures. Such material must be produced in a professional and tasteful manner. Material must not be used that reflects poorly upon Young Living. Violations may subject a Distributor to contractual sanctions as outlined in Section 13.3. 5.3 Advertising Claims and Representation

5.3.1 Product Claims You must not make (either orally or in writing) any claims which are not expressly stated in Young Living’s

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literature. In particular, you may not make any claim that Young Living’s products are useful in the diagnosis, cure, mitigation, treatment, or prevention of any disease or condition. Do not make any statements or claims that are false or misleading concerning Young Living’s products. You must comply with all laws regarding any statements made. Anyone improperly diagnosing or prescribing Young Living’s products for any condition may jeopardise the future of Young Living and all of its Distributors and therefore will be subject to termination of their Distributorship if they are found to have diagnosed any conditions and prescribed Young Living products without being a licensed medical professional authorised to do so.

5.3.2 Income Claims No false or misleading income projections may be made to prospective Distributors. In their enthusiasm, Distributors are occasionally tempted to represent hypothetical income figures based upon the inherent power of network marketing as actual income projections. This is counterproductive since new Distributors may be quickly disappointed if their results are not as extensive or as rapid as a hypothetical model would suggest. The income potential of a Young Living Distributor is great enough to be highly attractive in reality without resorting to artificial and unrealistic projections. No unrepresentative or exaggerated earnings claims shall be made. Any earnings claims must relate to actual earnings from the opportunity by an identifiable person and be capable of verification. Income claims should not imply that earnings are quickly or easily achieved. Moreover, several countries have laws or regulations that regulate or even prohibit certain types of income claims and testimonials made by persons engaged in network marketing. While Distributors may believe it beneficial to provide copies of cheques or to disclose the earnings of themselves or others, such approaches have legal consequences that can negatively impact Young Living, as well as the Distributor making the claim, unless appropriate disclosures required by law are also made contemporaneously with the income claim or earnings representation. Because Young Living Distributor do not have the data necessary to comply with the legal requirements for making income claims, a Distributor, when presenting or discussing the Young Living opportunity or Compensation Plan to a prospective Distributor should not make income projections, income claims, or disclose his or her Young Living income (including the showing of cheques, copies of cheques, bank statements, or tax records). Young Living Distributors must comply with all local laws. Young Living’s primary mission is not about creating luxury and riches, but helping people achieve wellness, purpose, and an abundant life. As such, you should not claim (expressly or impliedly, with words or images) that operating the Young Living business will lead to a

luxurious lifestyle (large homes, luxury cars, exotic vacations, or the like) or to riches.

5.3.3 Compensation Plan Claims When presenting or discussing the Compensation Plan, you must make it clear to prospective Distributors that financial success with Young Living requires commitment, effort and sales skill. Conversely, you must never represent that individuals can be successful without diligently applying themselves over an extended period. Examples of misrepresentation in this area include:

• Anyone can success with little or no effort • Failure to succeed is just a lack of effort • The system will do the work for you • Just get in and your downline will build through

spill over • Just join and I will build your downline for you • The company does all the work for you • You don’t have to sell anything • All you have to do is buy your products every

month The above are just examples of improper representations about the Compensation Plan. It is important that you do not make these or any other representations that could lead a prospective Distributor to believe that he or she can be successful as a Young Living Distributor without commitment of time and work effort.

5.3.4 Indemnification for Unlawful Advertising Statements You are fully responsible for all verbal and written statements you make regarding Young Living’s products, services, and the Compensation Plan which are not expressly contained in official Young Living materials. You agree to indemnify Young Living and Young Living’s directors, officers, employees, and agents, and hold them harmless from any and all liability, costs and losses, including judgments, civil penalties, refunds, attorney fees, court costs, or lost business incurred by Young Living as a result of the Distributor’s unauthorised representations or actions. 5.4 Testimonials and Meetings

5.4.1 Testimonials a. You must take every precaution to ensure that any

testimonials you use are legal and comply with sections 3.45-3.52 of the UK Code of Non Broadcast Advertising, Sales Promotion and Direct Marketing (the “CAP Code”) as amended from time to time.

b. Testimonials must be factual. c. Testimonials must not imply that earnings can be

easily achieved. d. Testimonials must not claim to treat, cure, prevent,

or mitigate any disease and/or medical condition. This includes expressed and implied claims. Avoid all references to any disease. Once Young Living (or an Independent Distributor) uses a testimonial relating an experience of treating a disease with the products, those products then become subject to

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regulation as “drugs” and/or “medicines” which require government approval and licenses before they can be lawfully marketed.

e. Any testimonial must comply with all applicable laws.

5.4.2 Meetings

At meetings, people may give testimonials about how the Company’s supplements and/or essential oils have helped them, this is strictly prohibited. If a person makes a “disease claim” at a Company- sponsored meeting, the claim may be imputed to the Company, thereby subjecting the Company and the person to adverse legal action. If you are the meeting leader:

a. You should not arrange for a disease-cure testimonial.

b. You should not personally give a disease-cure testimonial.

c. If there is an impromptu disease-cure testimonial from someone, redirect the discussion by saying, "Our essential oils or Nutritional products are not intended to diagnose, treat, cure, or prevent any disease."

Third-party scientific literature that is compliant with local law must be cleared for use by Young Living with prior written approval before being distributed at a meeting and in such event must be placed separately and apart from Young Living’s promotional material. 5.5 Trademarks and Copyrights The name Young Living, Young Living Essential Oils, YL, YLEO and all other names that may be adopted by Young Living, or its subsidiary or affiliate companies or used by those entities as trade names, product brand names, trademarks, logos, slogans, hashtags, web addresses or URL’s are herein referred to as “Young Living Trademarks” and are owned by Young Living. During the term of your Young Living Distributorship, and only during that term, you are authorised to

a. Copy and use the photographs made readily accessible on Young Livings Flickr® page (or future-used free websites or services), the text of product and service descriptions provided by Young Living and the videos posted to Young Living’s online video sites (e.g. Young Living’s Vimeo® and YouTube® pages) and

b. Use, except as prohibited herein, Young Living’s Trademarks (excluding Young Living’s company logos) solely in connection with the development of online and printed materials for use in building and managing you Young Living Sales Organisation. You may not, whoever, use these copyrighter materials or the Young living Trademarks in connection with any activity outside of the scope of your Distributorship without Young Living’s written authorisation, nor may you sell materials containing these properties (e.g. marketing

materials (including physical or electronic), essential oil accessories, swag, software or mobile apps, branded merchandise, books, brochures, movies, or other products that you sell to others (including other Young Living Members)), directly or indirectly. Upon termination of cancellation of your Distributorship, this license will automaticall6y terminate and you must immediately cease all use of Young Living Trademarks, text, photographs and video.

You are prohibited from applying for, owning, or registering any Young Living Trademark, in whole or in part, or any confusingly similar mark as a trademark in any jurisdiction in the world. In the event you do so or have done so, you hereby agree to assign, at no cost, the trademark registration or application to Young Living within ten days of Young Living’s written request. You are prohibited from using any Young Living Trademark (or confusingly similar terms) in connection with any online paid marketing program or effort, including, but not limited to pay-per-click online advertising, Google AdWords, paid social ads, video content, content syndication and display marketing. 5.6 Domain Names and E-mail Addresses Distributors may not use or attempt to register any of Young Living Trademarks, or any derivative thereof for any Internet domain name in whole or in part, either in the United Kingdom or abroad. Nor may Distributors incorporate or attempt to incorporate any of Young Living Trademarks, or any derivative thereof into any electronic mail address. In accordance with this policy, all existing Distributor-owned domain names that violate this provision will be expected to be brought into conformance within three months of notification of a violation by Young Living. In limited circumstances, an infringing domain name or e-mail address registration may be allowed to exist upon the signing of an annual trademark license agreement with Young Living Essential oils (US Headquarter), which will also carry a license fee. Such licensed agreements may be offered, withdrawn, or modified by Young Living at its own discretion at any time. Distributors with nonconforming domain name registrations who do not make such an agreement with Young Living will be expected to transfer those registrations to Young Living within the three-month time period noted above. 5.7 Internet Policy Many Distributors will use the Internet to further their businesses using websites, blogs, social media, etc. (collectively "Distributor Sites"). Distributor Sites used to promote Young Living, Young Living products, or Young Living events must display a current Young Living Independent Distributor logo in a prominent location. Distributor Sites must further include:

a. the Distributor’s name and ID number; and

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b. the following legal wording which cannot be amended in any way:

1. “It is illegal for a promoter or a participant in a trading scheme to persuade anyone to make a payment by promising benefits from getting others to join a scheme. 2. Do not be misled by claims that high earnings are easily achieved.” Distributor Sites may include product descriptions, photographs, video, and other media, made available to Distributors by Young Living (e.g. through the official YL website, the Virtual Office, or the YL Flickr® account). The Distributor Sites may not:

a. use any Young Living logo besides the Young Living Distributor logo;

b. use a similar website layout, which “looks and feels” like the Young Living website;

c. make any improper product, income, compensation plan, health or nutritional claims, as outlined in section 5.3;

d. promote the products or business of any other company; or

e. contain false or misleading information; or f. collect, store, process or transmit confidential

Distributor and/or Customer information. Distributors are responsible for ensuring that all users of their Distributor Sites comply with these requirements. Distributor Sites may, at Young Living’s sole discretion, be monitored by Young Living for breaches of the Distributor Agreement. Failure to monitor Distributor Sites for any period of time does not waive Young Living’s rights to enforce the provisions of this section. When using social media, Distributors shall abide by the Distributor Agreement and may not use as their username, account name, or other identifier (collectively “Username”) any of Young Living’s trade names or company names or any other name that may be confused with Young Living or suggest Young Living’s sponsorship thereof. Usernames may only include the name “Young Living,” if the Username is not displayed in the URL of Social Media. In any other case and as long as the username also includes “Independent Distributor” or a similar identifier that effectively distinguishes it from a Young Living corporate account.

When advertising a YL Distributor website or web shop on the internet, it must be clear that this advertisement is from a YL Distributor and not YL Corporate. The URL must not falsely show the YL corporate URL. 5.8 Internet Classified Ad Sites, Auction Sites, Shopping Sites, or Order Fulfilment Stores Restricted Young Living is direct selling company. Presentations, business meetings and personal contacts of Independent Distributors are the primary permissible venues where Young Living products and the Young Living opportunity are intended to the presented. The integrity of the Young Living brand name, product line, health and safety issues,

and the Independent Distributor relationship is key to Young Living. Offering our products on auction sites weakens the personal relationship between the Independent Distributor and the Customer, as well as the brand and experience which Young Living wants to create for its Customers and products. Therefore, as a general rule, Distributors may not sell or display Young Living products on any Internet classified ad site (e.g., Craigslist, etc.), marketplace (e.g. Facebook® marketplace, Walmart® marketplace, etc.), auction site, shopping site, or order fulfilment store (e.g., eBay®, Amazon®, OrderDog™.com, Overstock®.com, etc.). Further, Distributors may not

a. enlist or knowingly allow a third party to sell Young Living products on any Internet classified ad site, auction site, shopping site, or order fulfilment store or

b. sell products to a third party that the Distributor has reason to believe will sell such products on any Internet classified ad site, auction site, shopping site, or order fulfilment store.

Distributors may continue to sell Young Living products on their individual URL’s and independent distributors’ retail sites provided they register their URL with Young Living and prominently display the independent distributor logo and their Distributor number on the URL. Young Living reserves the right to strictly prohibit, monitor, charge a fee, and take all enforcement efforts necessary, including, but not limited to, termination of an online seller’s Distributor account if the Distributor is in violation of any laws, regulations, and these policies and procedures. Young Living shall be entitled to all and reasonable attorney’s fees and related costs incurred in enforcing its rights in any action in which it is found that you violated the terms of this provision. 5.9 YLEO Personal Websites - MyYL Young Living offers a personalised website in select countries to assist in your marketing efforts. You should contact Member Services EUROPE B.V.at 0800 917 9438 (free from a UK landline) for more details or log in to your Young Living Virtual Office (YoungLiving.org) for more information. You should be advised that by using a Young Living website, your contact information will become available to the public so that they may contact you with questions. Young Living will not be held responsible for any unintended or adverse consequences of this service. 5.10 Commercial Outlets You may display Young Living’s products in commercial outlets that, in Young Living’s sole discretion, are not large enough to be considered regional or national chains. 5.11 No Price or Territory Restrictions It is recommended to sell Young Living’s products to Customers at the suggested Customer prices (retail

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prices) set by Young Living in the Young Living Product Price List. You may sell Young Living’s products at any price you choose, although it is strongly recommended to uphold the pricing structure set by Young Living. There are no exclusive territories granted to anyone. No franchise fees are required. Distributors purchase products at Distributor prices (wholesale prices). Young Living reserves that right to offer its products and services through any sales channel, including through its professional account program and through other companies (e.g., a direct sales company in China). 5.12 Trade Shows and Expositions You may display and/or sell Young Living’s products at trade shows and expositions. All literature displayed at the event must be official Young Living literature relating to that country and you must clearly identify yourself as an Independent Distributor. 5.13 Media Inquiries You may not attempt to respond to media inquiries regarding Young Living, its products or services, or your independent Young Living business. All inquiries by any type of media must be immediately referred to the Young Living EUROPE B.V. Marketing Department. This will ensure that accurate and consistent information reaches the general public. SECTION 6 SALES REQUIREMENTS 6.1 Product Sales and Sales Receipts The Young Living Compensation Plan is based upon the sale of Young Living’s products and services to end consumers. You must fulfil specified personal and downline organisation sales requirements (as well as meet other responsibilities set forth in these Policies and Procedures) in order to be eligible for bonuses, commissions, and advancement to higher levels of achievement. The following sales requirement must be satisfied in order for you to be eligible for commissions: Business Purchase/Sales: a. A minimum of 70% of your orders must be sold to

Customers or other end users. You may not purchase additional product until at least 70% of the previous order has been sold to end consumers. The sales volume of your personally enrolled Customers will be included with the sales determining compliance with the 70% requirement.

b. You are required to furnish your Customers with two copies of a Retail Sales Receipt, which specifies the date of sale, the amount of sale, the items purchased, and the Young Living satisfaction guarantee, as well as any consumer protection rights required by the law in the country of residence. In accordance with such laws, you must inform your customers of their cancellation rights. Additionally, if you sell product inventory to other Distributors,

you must provide the purchaser with a Sales Receipt. You should maintain copies of all Sales Receipts for the duration of this Agreement and furnish them to Young Living at the Company’s request. Young Living will maintain records documenting the purchases of Distributor’s Customers and direct purchase Customers.

Personal Sales/Use: c. Young Living Distributors agree not to stock

excessive inventory and to abide by the 70% rule, which is that 70% of the Distributor’s inventory has been sold or consumed prior to ordering more. By ordering more product(s), the Distributor certifies that 70% of all prior orders has been consumed or sold. The Distributor agrees not to purchase inventory for the sole purpose of qualifying for compensation and/or payments. Personal sales should also be handled as mentioned under “b.”

6.2 Non-Distributor Customers and Distributors You may personally sell Young Living’s products to any Customer (Distributor or non-Distributor) at any price you choose. A non-Distributor Customer is someone who is purchasing product directly from you and does not have a Young Living Distributorship. 6.3 Customers and Sales Requirements Customer orders satisfy Customer sales requirements to help qualify for commissions. 6.4 Excessive Purchases of Inventory Prohibited Distributors will not encourage their Downline or any other Distributor to make unnecessary product purchases that could result in a large stagnant inventory. This is called “front-end loading” or “inventory loading” and refers to the purchase of products that are stored, destroyed, or otherwise disposed of without being consumed, not merely purchased and warehoused. Distributor and leaders must consume their products or sell their products to people who will consume them. If any Distributor is found to be buying to meet qualifications within the Compensation Plan with no provable business building, Young Living reserves the right to put the Distributor account on hold until it can fully investigate the qualification buying. SECTION 7 COMMISSIONS AND BONUSES 7.1 Commissions and Bonus Cheques You must be active (at least one 50PV product order in the last 12 months) and in compliance with this Agreement to qualify for compensation. As long as you comply with the terms of the Agreement, Young Living shall pay you commissions and bonuses in accordance with the Compensation Plan. Commissions and bonuses are paid at a minimum, monthly. Commission payments (including bonuses and fees as mentioned below) are issued in US Dollars ($) and are being converted at pay-out into the respective currency with the exchanged rate

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set by Young Living. All other commissions and bonuses (Unilevel, Generations, etc.) are paid on approximately the 18th of each month for the prior month’s sales and services. Commission amounts under $25 (GBP 18.25) will not be issued as a cheque or bank transfer, but retained as a credit on account for future product purchases. Distributors may contact the Customer Care Department to obtain the current rate of exchange. Leaders will be required to actively meet leadership requirements defined by Young Living to qualify for their commission bonuses. For more information, see the Compensation Plan. 7.2 Recap Statements Detailed reports are available online in the Virtual Office of the corporate website at YoungLiving.com. If you do not have Internet access, you may request that the report be faxed or mailed to you for a small fee. 7.3 Adjustments Distributors agree that adjustments will be made to your commission cheque for any processing fees, unpaid balances, or debts owed for other services. When a product is returned to Young Living for a refund or is repurchased by the Company, the bonuses and commissions attributable to the returned or repurchased product(s) will be deducted from any future commission cheques, including that of the Upline. Any other debt may be offset against commission cheques. In case where no commission pay-out is being earned and money is owed at the end of a month due to possible commission retraction (e.g. products returns from someone in the Distributor’s organisation or similar), the owed amount will automatically be deducted during the 1st to the 5th of the following month from the payment method saved on the system. 7.4 Deductions/Maintenance Fees A monthly maintenance fee is assessed each month and is used to cover your accounting, processing and account maintenance. The fee may be tax deductible, so consult your personal tax advisor for details. The fee schedule is as follows (currency depending on respective country): Monthly Commissions Fee USD $ $10-49 $1.00* $50-99 $2.00* $100-499 $3.00* $500-999 $4.00* $1,000 + $5.00* Monthly Commissions Fee GBP £ £6.40-31.36 £0.73 £32.00-63.36 £1.46 £64.00-319.36 £2.19 £320.00-369.36 £2.92 £640.00 + £3.65

The monthly Maintenance Fee from commissions will not exceed $5 (GBP £3.65) per month or $60 (GBP £43.8) per year. The Maintenance Fee is to cover costs associated with accounts maintenance, to search for credit holders, maintain the accounts, send out requests and search material, regular updates, newsletters, etc. For any queries regarding the Company’s exchange rate, please contact our Customer Care Department. 7.5 Errors or Questions Review your Commission and Bonus Recap statements and report any errors or discrepancies to Young Living within forty-five (45) days from the date of payment. Errors or discrepancies which are not brought to Young Living’s attention within forty-five (45) days will be deemed waived by the Distributor. 7.6 Commissions, Bonuses and Credit on Account Credits or cash commissions onto the Distributor’s Young Living account (shown as a credit on the Distributor’s account) may be used against future purchases from Young Living. SECTION 8 ORDERING 8.1 Ordering Methods All Distributors may place orders by telephone, fax, mail, YL website, e-mail or through the Essential Rewards Programme.

8.1.1 Phone When ordering by phone, be prepared to present all information requested on the Young Living Product Order Form, including Distributor number and personal identification number (PIN). Live operators are available Monday/Tuesday/Thursday/Friday from 9:00 a.m. to 5:00 p.m. and Wednesday 9:00 a.m. to 4:00 p.m. GMT. Payments can be made by Visa, MasterCard, PayPal, cheques or bank transfers.

8.1.2 Fax When ordering by fax, print information legibly on the order form. Payments can be made by Visa, MasterCard, PayPal, cheques or bank transfers. Orders may be faxed to 01480 862849 in the UK.

8.1.3 Mail When ordering by mail, send completed order form when provided for certain events with payment to: Young Living EUROPE B.V. Attn: Order Entry Young Living EUROPE B.V. Peizerweg 97, 9727AJ Groningen, Netherlands Payments may be made by Visa, MasterCard, PayPal, cheques or bank transfers.

8.1.4 Young Living Website

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The corporate website makes ordering and accessing information online quick and easy. Available 24 hours a day, 7 days a week (save for period of down time or updating), the Website allows you to place online orders. You will need your Distributor number and password (which must be kept confidential) to establish a login and security code (4-digit PIN) at www.youngliving.com. You must keep your PIN secure and only order on your account.

8.1.5 E-mail When ordering by e-mail, please use e-mail address saved on the YL account and state your YL account number and PIN for identification. 8.2 Essential Rewards programme The Young Living Essential Rewards Program enables you to have Young Living products automatically shipped to you each month. Through this optional program, you can earn free products, qualify for Distributors-only specials, and qualify for compensation under the Compensation Plan. You may learn more and sign up for the Essential Rewards Program in the Virtual Office (YoungLiving.com) or by contacting Customer Care Department: Toll free from a landline within UK: 0800 9179 438 Not toll free: 0044 (0) 20 3935 9000 Monday – Friday 9:00 – 17:00 (GMT), Wednesday 9:00 – 16:00 (GMT). Closed on public holidays. English: [email protected] German: [email protected] Swedish: [email protected] Spanish: [email protected] Polish: [email protected] Finnish: [email protected] Czech/Slovak: [email protected] Russian: [email protected] Lithuanian: [email protected] Croatian: [email protected] Flemish: [email protected] Hungarian: [email protected] Romanian: [email protected] Belgian: [email protected] Serbian: [email protected] French: [email protected] Latvian: [email protected] Italian: [email protected] Ukranian: [email protected] Toll free from a landline within: UK: 0800 9179438 Austria: 0800 296 205 Croatia: 0800 222 788 Czech Republic: 800144066 Finland: 0800 913 239 France: 0800 917 791 Germany: 08000 825 049 Italy: 800 790 481 Lithuania: 08800 30914

Poland: 00800 4421254 Russia: 8800 1006419 Slovakia: 0800005216 Spain: 900 812976 Sweden: 0207 93400 Not toll free: 0044 (0) 20 3935 9000 Fax: 0044 (0) 2038573431 Belgium: 0032 33039943 Netherlands: 0031 207975809 Romania: 0040 217940852 Croatia: 00385 17757170 Hungary: 0036 1999 3448 8.3 General Ordering Policies On mail-orders with invalid or incorrect payment information, Young Living will attempt to contact you by phone, mail or e-mail to obtain another payment. For orders to be counted in a given month, they must be received and accepted on or before the last day of the month. Changes made to pending orders that have not yet shipped will keep the original date the order was entered. This may affect commission qualification. Distributors themselves are responsible to check payments on orders placed via the Virtual office. Should a payment fail, please contact customer care department, as it may affect commission qualification. If an item ordered is out of stock or discontinued and the payment has been taken for this item, Young Living will attempt to contact you by e-mail, so you may select an alternative item. If we are unable to contact you or do not receive a response from you within one to two (1-2) business days, Young Living will remove the item and process the order. Payment plans are not allowed when purchasing product. The balance may be paid with different credit cards but must be paid in full before the order will be shipped.

8.3.1 Back Orders Because back orders often cause qualification problems and because some of our products are dependent on uncertain international supplies beyond our control, Young Living does not usually offer back orders. Only under unusual circumstances will Young Living offer a back order. If a back order does occur, no additional shipping charges will be incurred in shipping the back-dated product.

8.3.2 Month-End Order Processing Cut-off The month-end order processing cut-off for web orders is the last calendar day of the month at 6:59 a.m. GMT. For mailed orders (via post) the post stamp on the envelope counts as the order date. Faxed orders must be received by the last day of the month. All e-mailed-in orders will be credited to the month in which they are received. Even

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when the end of the month falls on a weekend, holiday, or a day that the Young Living office is closed, the deadline will not normally be extended. The website is available 7 days a week, 24 hours a day (excluding hours for system maintenance), making it possible to place all orders by the end of the month.

8.3.3 Back-Dating Orders Orders will be processed in the month they are received. No orders will be credited for a prior sales month. On rare occasion and on Young Living’s discretion, back orders will be arranged. There will be no additional transport charge. SECTION 9 SHIPPING 9.1 Shipping Methods and Charges Orders are generally shipped within two (2) business days (excluding weekends and holidays). A packing list is included in each shipment. The invoice can be printed via the Virtual office, in the order history. It contains the order number, Distributor number and name, product code, product name, price, and the amount and method of payment. Distributors should keep these invoices for personal accounting records. Packages may be tracked through the parcel carrier. 9.2 Shipping Discrepancies When an order is received, the products should be checked against the Invoice to make certain there is no discrepancy or damage. Please notify Young Living via mail, telephone or fax of any shipping discrepancies or damage within five (5) business days of receipt of shipment. Failure of notification within those five (5) days will forfeit your right to request a correction. For product faults or quality issues please refer to section 11 of the procedures. To correct any problems, you may have encountered with your shipments, please contact Young Living EUROPE B.V. – Member Services. Your Member Service representative will discuss the steps to rectify the situation and issue a Return Merchandise Authorisation (RMA) number if necessary. You may contact us by telephone, e-mail or by fax. SECTION 10 PAYMENTS 10.1 Methods of Payment Young Living accepts the following payment methods:

a. Visa or MasterCard. Using someone else’s credit/debit card without their written permission is illegal and may be grounds for termination of this Distributor Agreement as well as possible legal action.

b. PayPal – PayPal is a third-party provider and Young Living is not responsible for any possible difficulties regarding PayPal or PayPal payments. This option can only be set up by the Distributor through the Virtual Office.

10.2 Insufficient Funds It is your responsibility to ensure that there are sufficient funds available in your account to cover regular orders and Essential Rewards orders. Any uncollected amount may be deducted from commissions or a possible credit on your Young Living account. 10.3 Commission and Bonus Release Form You may choose to retain your commissions and bonuses (all or in part) in the form of a credit on your Young Living account. This credit can be used against future product purchases. Please contact Customer Care in writing if you choose this option, by stating your name, YL ID number, the amount and which commission or bonus you wish to retain as a credit. SECTION 11 PRODUCT RETURNS 11.1 Buy Back Guarantee (b2b) Product(s) can be returned at any time on request during the duration of the contract between Young Living and the Distributor, provided the product was purchased within one (1) year of the date of the returns request, upon the terms set out in section 11.1.1.b and c. Returns will cause promotions, credits, commissions, and bonuses to be adjusted or reversed, both for the person making the return and for any Upline Distributors who received compensation on such purchases.

11.1.1 Right of Withdrawal/Termination

a. 14 days after acceptance of Contract The Distributor Agreement (Contract) may be withdrawn by either party within fourteen (14) days after acceptance of the Contract. Young Living will buy back any unsold products (see definition below) returned by the Distributor within twenty-one (21) days of termination upon terms which are no less favourable than the statutory rights.

b. Withdrawal after 14 days after acceptance of Contract

Young Living will buy back products (see definition below) purchased by the Distributor no less favourable than the statutory rights and with the exclusion mentioned below:

(i) within ninety (90) days of the date of termination for the full purchase price, and

(ii) more than ninety (90) days up to one (1) year of date of termination for 90% of the purchase price.

c. Exclusion (deductions) regarding the buyback

price:

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(i) Any commissions, bonuses or other benefits (in cash or in kind) received by the Distributor in respect of those products,

(ii) any amounts due from the Distributor to Young Living on any account, including

(iii) a reasonable handling fee, provided that:

(iv) such product has not been purchased or acquired by the Distributor in breach of the contract;

(v) the Distributor returns such product to Young Living in an unused, commercially resalable condition not more than 14 days after the date of termination.

Definition of bought back products: Training and promotion materials, business manuals and kits, products, but excluding seasonal, discontinued or special promotion products, as well as products purchased with Essential Rewards points credits. 11.2 Return Policy (Consumer) Any Distributor or Customer who purchased products as a consumer directly from Young Living (e.g. by a phone call, via an email, by mail order, fax or via the website):

- has a right to withdraw their order at any time up to 14 days after the day on which the Distributor takes delivery of the goods.

- will get a refund by the same means (payment method) the goods were purchased with, including the cost of standard delivery

When sending a notice of withdrawal, please include the following:

- Distributor’s name and address, including the YL ID number and PIN

- Description of the goods - Date of order - Reference Number of order or invoice

Important: Notice of withdrawal must be given within 14 days of receipt of goods, either via post (takes effect when posted), e-mail (takes effect when sent) or fax (takes effect when faxed). Cancellations via phone cannot be accepted. It is important to return the products in good condition within 14 days of cancellation. The return postage (from Distributor to Young Living) will not be refunded and are at the Distributor’s expense. Additional guarantees: The guarantees set out here (a - d) are without prejudice to your statutory rights.

a. Return of faulty or damaged Products (excluding electrical appliances)

Within ninety (90) days after shipment (accidental damage or misuse is excluded) and in addition to any right to cancel the order as set out above, you are entitled to either

- a repair, or

- a replacement Product, or - a credit on the Distributor’s Young Living

account of the purchase price and applicable Value Added Tax, or

- a full refund of the purchase price and applicable Value Added Tax.

Please contact Member Service EUROPE B.V.in case you received a faulty product under [email protected], Phone: Toll free from a landline within UK: 0800 9179 438 Not toll free: 0044 (0) 20 3935 9000, Fax: 0044 (0) 2038573431. It is important to describe the fault with as much detail as possible.

b. Return of faulty or damaged electrical appliances

Within twelve (12) months (accidental damage or misuse is excluded) and in addition to any right to cancel the order as set out above, you are entitled to either

- a repair or - a replacement, starting from the day of

delivery.

Please contact Member Service EUROPE B.V.in case you received a faulty product Young Living EUROPE B.V. under , [email protected], Phone: Toll free from a landline within UK: 0800 9179 438 Not toll free: 0044 (0) 20 3935 9000, Fax: 0044 (0) 2038573431. It is important to describe the fault with as much detail as possible. Should the product be found in working condition without a fault, you will be contacted by Customer Care and either

- the working product will be returned back to you, and you will be charged for all shipping charges, or

- you may purchase a new product for the normal sales price, depending on your discussion with Customer Care. You will be charged for all shipping charges.

c. Return of unopened/Sealed Products (all

products)

Within thirty (30) days after delivery and in addition to any right to cancel the order as set out above:

- for a full refund of the product price in the same method of payment of the purchase price and applicable Value Added Tax (less shipping charges).

Within ninety (90) days after delivery (excluding the first thirty (30) days) and in addition to any right to cancel the order as set out above:

- for products with which the Distributor is dissatisfied for a credit of the purchase price and applicable Value Added Tax (less shipping charges), including a 10% handling fee.

If a returned product is not received by the Company’s distribution centre, it is the responsibility of the

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Distributor to trace the shipment. Young Living is not liable for items lost or damaged in transit. The cost for returning product(s) shall be borne by the Distributor.

d. Return of opened Product (all products)

Within thirty (30) days after delivery for products with which the Distributor is dissatisfied

- for a credit on the Distributor’s Young Living account of the purchase price and applicable Value Added Tax (less shipping charges).

Within ninety (90) days after delivery (excluding the first thirty (30) days) for products with which the Distributor is dissatisfied

- for a credit of the purchase price and applicable Value Added Tax (less shipping charges), including a 10% handling fee.

- The credit applied for opened product will be based on the percentage of the product returned. For example, if you return 50% of a product, then a credit of 50% (less shipping charges and a 10% handling fee) will be applied to your Young Living account.

These return guidelines do not affect a Distributor’s rights to return products upon termination of the Distributor Agreement as set out in this section and clause 38 of the Distributor Agreement.

11.2.1 Rights and duties of YL Distributors YL Distributors must honour the rights of their Customers (consumers) as set out in this Returns Policy, and therefore give their Customers (consumers) at least the statutory rights granted to Customers (consumers) as set out in their country of residence.

YL Distributors must:

a. inform YL of any notice of cancellation or YL Guarantee claim that the Distributor receives from a Customer (consumer), and

b. give every co-operation to YL to ensure that the Customer’s (consumer’s) rights are honoured.

The rights of YL Distributors to cancel any order that the Distributor has placed with YL are governed by the Policies & Procedures which are part of each Distributors contract with YL. Distributors are responsible for returning any returned product(s) they receive to the Company within fourteen (14) days of receiving the return. Excessive returns may be deemed an abuse of Young Living’s return policy and may result in suspension of your return privileges and/or Distributorship. Receipt/invoice/proof of purchase from the Distributor to the Customer with date, amount and item description including quantity is required to receive a refund for faulty items.

11.2.2 Legal rights of Distributors and Customer(s) of Distributors

Your legal rights include the right to receive goods which correspond with the description (and any sample) by reference to which they were sold, which are of satisfactory quality, which are reasonably fit for the purposes for which such goods are usually bought and for any particular purpose for which you have informed us that you wanted them. The cancellation rights and the YL Guarantee which are set out above are in addition to those legal rights. We make every effort to ensure that YL products are of the highest quality. If, however, the goods are damaged upon delivery or you consider them to be defective or below the quality reasonably to be expected, please contact your Distributor – or YL direct – without delay.

11.2.3 Product Kits All Young Living product kits and product collections must be sold as a whole unit. Distributors are prohibited from selling individual items from product kits and product collections separately and promoting such activity within the Distributor’s business organisation. Any product kit returned to Young Living must be complete; otherwise the kit will not be eligible for an exchange or refund. No individual items from a kit will be eligible for a refund.

11.2.4 Return of Promotional Product(s) For any complimentary item(s) received by the purchaser via a qualifying purchase or through the buy-one-get-one-free (BOGOF) promotion, returns will be handled as follows:

a. If a qualifying purchase is returned in whole or in part, therefore negating the qualification to receive the complimentary item, the promoted product(s) must also be returned, or the Distributor will be charged for the free product(s).

b. If one of the BOGOF products is returned, Young Living will not credit the Distributor, as Young Living will assume the returned item(s) is the promoted product(s). If both products of the BOGOF are returned, Young Living will credit the Distributor for the product purchased.

11.3 Procedures for Returns The following procedures apply to all returns for refund, repurchase, or exchange. A separate Returns Procedure applies for terminated Distributor Agreements (see Clause 38 “Termination” in the Terms and Conditions of the Distributor Agreement).

a. The Customer or Distributor who purchased a product directly from Young Living must return all products. In the event that a Customer or

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Distributor sends back a product it will be checked and tested.

b. All product(s) must be returned in its original container (e.g. glass bottles). If a returned product is not received by the Company’s distribution centre, it is the responsibility of the Distributor to trace the shipment. Young Living is not liable for items lost or damaged in transit. We therefore recommend that you return items using special or recorded delivery system and retain your proof of postage.

c. The return must have a Return Merchandise Authorisation number (RMA) which must be obtained by calling Customer Care YL EUROPE B.V.. The RMA number must be written on the outside of each package otherwise the shipment will be returned to the Distributor and/or Customer, and the Distributor and/or Customer will be liable for such cost.

d. Shipping cost of returned goods, provided YL is at fault, will be refunded at a maximum of 20 GBP as a credit to the YL account.

e. Volume for exchanges will be counted in the month the exchange transaction was made.

f. No refund or exchange will be made for subsequent returns of the same product, except when the product is damaged or defective.

g. Credits/refunds will be issued when Young Living has received the goods.

h. Distributors are responsible for ensuring that products are returned in good condition.

i. The Distributor who purchased products directly from Young Living must return all products. Distributors must obtain a Return Merchandise Authorisation Number (RMA) from Customer Care before sending any items back and must be displayed on the outside of the package. Young Living will not accept any returns from Distributors without an RMA displayed or a filled in “Product Return, Shipping Discrepancy, Damage Claim Form” enclosed.

11.4 Return Address Building 11, Chiswick Park 566 Chiswick High Road London W4 5YS Please add the RMA number SECTION 12 DISTRIBUTOR ACCOUNT MANAGEMENT 12.1 Changes to a Distributor Account You must immediately notify Young Living of all changes to the information contained on the Distributor Application and Agreement. You may update your existing information by submitting a written request indicating the changes by contacting Customer Care, or by making such changes in the Virtual Office of corporate website. The modifications permitted within the scope of

this paragraph do not include a change of Sponsor or tax information.

12.1.1 Sponsor Changes To protect the integrity of all Marketing Organisations and to safeguard the hard work of all Distributors, Young Living strongly discourages changes in sponsorship. Young Living recognises, however, that there may exist extenuating circumstances that necessitate a change in sponsorship. Therefore, a request for sponsorship change will be considered only under the following circumstances: Transfers or changes will be considered only under the following circumstances:

a. Only one (1) free Sponsor/Enroller change request can be made within the first thirty (30) calendar days of enrolment with the approval of the Distributor OR current Enroller. Sponsor/Enroller change requests may be made directly over the phone if within the first five (5) calendar days of registration. After 5 calendar days, but within 30 days, the request must be submitted in writing via mail, email, fax, or other method or form required by Young Living. Requests after the initial five (5) days must be submitted via email or other method prescribed by Young Living to [email protected]. The email and or form must come directly from the new Distributor or the new Distributor’s Enroller and must be sent from the email address on file with Young Living. Requests cannot be submitted by another Distributor, even in the form of a forwarded e-mail. Sponsor changes must be made prior to the end of each calendar month to be recognised in that month. If the Sponsor change is submitted after the last calendar day of the month but within the 30 days of enrolment, the Sponsor change will not be recognized until the following month. Young Living shall not be responsible for a delay in Sponsor change due to the timeliness of the submission of a Sponsor change request as outlined herein and within the thirty (30) days. If within the thirty (30) days both the Enroller and the downline Distributor submit a request for a Sponsor/Enroller change, the downline Distributor’s request will always take precedence. The Distributor or Enroller can contact Member Services EUROPE B.V. to submit the Sponsor change request during the thirty (30)-day period. Only newly enrolled Distributors and reactivating Distributors are authorised to request any sponsor change for their individual accounts within thirty (30) days of the enrolment or reactivation. Such changes

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cannot be made at the request of upline or family members.

b. Under exceptional extenuating conditions, a Distributor may request a Sponsor change after the thirty (30) days of enrolment by completing a Three Active Upline Approved Sponsor Change Request Form and submitting a non-refundable $35 (GBP £25.55) processing fee to Young Living EUROPE B.V. . “Three Active Upline” is defined as the three (3) Distributors in the Distributor’s Upline that have generated 100 PV actively for six (6) consecutive months. The non-refundable $35 (GBP £25.55) processing fee must be paid either by check or credit/debit card and will not be refunded upon a denial of a Sponsor change request. Young Living will not consider a Sponsor change until it receives all documentation with the required signatures. If one of the Upline Distributors does not respond within a period of sixty (60) days, the Distributor may request to be moved under the Sponsor of his/her choice. The Distributor must demonstrate that he/she has made a good faith effort to contact all three Upline Sponsors. The good faith effort will require the Distributor to provide sufficient evidence to prove they have tried for a period of sixty (60) days to contact the Upline Distributor via email, etc., and the Upline Distributor has ignored or has been nonresponsive to the request. The evidence must be submitted to the Member Services EUROPE B.V. at [email protected]. If the Distributor cannot provide evidence of a good faith effort, Young Living may deny the request at its sole discretion. If a Sponsor change is successful through the Three Active Upline the Distributor’s original organisation downline will roll up to the next Upline and remain in the original genealogy. If there is a dispute concerning a signature of one or more of the Three Active Upline approval, the Conduct and Education team will investigate the approvals, and Young Living may reject the Sponsor change request and restore the Distributor to the original Sponsor. No Enroller changes will be allowed after thirty (30) days of the initial Distributor enrolment. Young Living reserves the right to approve and/or deny all Sponsor change requests in its sole discretion.

c. If a Distributor is unable to get approval from his/her three active upline, the Distributor may choose to go six months without placing an order to effect a change to a new sponsor. At the end of six months the Distributor may request a sponsor change by emailing [email protected] and paying a

$35 fee (GBP £25.55). The new Sponsor cannot become the Enroller. When a Distributor moves from the original downline to a new downline, the Enroller status/bonus becomes null and void.

d. A Distributor may request a Sponsor change if the Distributor’s Sponsor has not provided support to the Distributor for over a period of two (2) years and the Distributor has filed a grievance with Young Living EUROPE B.V. that includes the following: 1. The Sponsor/Upline Distributor does not contact the Distributor over the period of two (2) years; 2. the Sponsor/Upline Distributor does not respond to requests for help; 3. the Sponsor/Upline Distributor does not offer support, mentoring, business building information, etc. The Distributor must submit the grievance to [email protected]. Young Living will conduct a full investigation into the grievance; and if the grievance appears substantiated, Young Living may allow the Sponsor change. The Distributor requesting the change must pay the non-refundable $35 (GBP £25.55) processing fee.

e. If the Distributor has not placed an order or generated at least 50 cumulative PV for twelve (12) consecutive months, the Distributor account will be dropped for inactivity around the middle of the following month after twelve (12) months of inactivity. The existing downline will roll up to the next Upline and remain in the original genealogy. Upon reactivation of an account terminated for inactivity, the Distributor may sign up under a new Sponsor and Enroller.

Requests cannot be submitted by another Distributor. Young Living will not approve Sponsor change requests that it deems to be intended to manipulate payment under the Compensation Plan and reserves the right to make Sponsor changes for any reason at any time and at its sole discretion. If a member enrolled in Young Living or ordered products in the previous month and his or her sponsor or enroller changes during the first five business days of the month, that change may affect the previous month’s rank, qualification, and pay-out.

12.1.2 Waiver of Claims If you have changed Sponsor but did not follow the appropriate procedures, as outlined in Section 12.1.1 and you have developed a downline organisation under a new Sponsor, Young Living reserves the sole and exclusive right to determine the final placement of your new downline organisation. You waive and all claims against Young Living, its officers, directors, owners, employees and agents that

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relate to or arise from Young Living’s decision regarding the disposition of any Sales Organisation that develops below an organisation that has improperly changed lines of sponsorship.

12.1.3 Sponsor Placement Programme When a new Distributor enrols without a designated sponsor or enroller they are deemed and orphan. The Young Living Placement Programme generally assigns orphans a sponsor and an enroller who resides in or near the same area code or geographical area of the orphan and/or who speak the same language as the orphan. Eligible sponsors and enroller generally include Executive, Silver and Gold ranking Distributors who actively support their downline, have growing sales results, have grown their sales organisation in the month in which a new orphan becomes available, are active in participating in Young Living events and programmes (e.g. Essentia Rewards) and who actively work to support the mission of Young Living. The Young Living Placement Programme is directed by Young Living’s executive management team (in Salt Lake City, Utah, USA) which reserves the right to assign any orphan as it sees fit in its sole discretion. The recipient should be enrolled in the ER Programme and conscientiously engaged in the Young Living business. The new Distributor has 30 days to change from the assigned new Sponsor to another sponsor of his or her choice, as outlined in Section 12.1.1. 12.2 Downline Genealogy Reports & Confidentiality The Company’s genealogies (being the information owned and held by the Company relating to its Distributors and Customers, including without limitation its relationship with each of its Distributors, the sponsorship of each Distributor, the Distributor’s Upline and downlines, and historical purchasing information for each Distributor) is confidential information which is highly sensitive and valuable to the Company’s business and the Company’s legitimate business interests require that such information is kept confidential at all times and in perpetuity. In the event that the Company shall disclose details of any of its genealogies to the Distributor the term of this Agreement:

a. the Distributor shall at all times and without limit in time treat such details as confidential information in the nature of a trade secret and shall not disclose such details to any other person (including any company or person in competition with the Company) and shall take all reasonable steps to protect and maintain the security of the information, and shall use the details solely for the benefit of the business of the Company and for the stated purpose for which they were provided; and

b. the Distributor shall return copies of any such information to the Company forthwith upon

the termination of this Agreement for whatever reason.

Downline Genealogy Reports are optional and may be ordered at any time. Distributors with a Young Living-sponsored personal website may receive two free E-Mailed downline reports per month, upon request with all additional E-Mail reports costing $5 (GBP 3.65) each. Distributors who wish to have the Report faxed or mailed will pay $5 (GBP 3.65) for the first 10 pages and 10 cents (GBP 0.07) for each additional page. Young Living reserves the right to modify the charges described in this Section 12.2. Downline Genealogy Reports are optional and may be ordered at any time. Distributors with a Young Living-sponsored personal website may receive two free E-Mailed downline reports per month, upon request with all additional E-Mail reports costing $5 (GBP 3.65) each. Distributors who do not have a personal website will pay $5 (GBP 3.65) for each E-Mail report requested. Distributors who wish to have the report faxed or mailed will pay $5 (GBP 3.65) for the first 10 pages and 10 cents (GBP 0.07) per page after 10. Young Living reserves the right to modify the charges described in this Section 12.2. Downline Genealogy Reports contain trade secret information, which is proprietary to Young Living. Young Living may request the return of these reports at any time and will require their return upon Distributor termination. SECTION 13 DISPUTE RESOLUTIONS AND CONTRACTUAL SANCTIONS 13.1 Disputes between Distributors If you have a grievance or complaint with another Distributor regarding any practice or conduct in relationship to your respective Young Living business, you should first discuss the problem with the other Distributor. If this does not resolve the problem, report the problem to your Upline leader who is a Silver or above to resolve the issue at a local level. If the matter cannot be resolved, it must be reported in writing via fax, e-mail or mail to Young Living EUROPE B.V. . The complaint should identify specific instances of alleged improper conduct and, to the extent possible, identify the relevant dates on which the event(s) complained of took place, the location(s) where they occurred, and all persons who have first-hand knowledge of the improper conduct. Upon receipt of a written complaint, the Young Living EUROPE B.V. team will investigate the matter, review the applicable policies, and render a decision on how the dispute shall be resolved. The Young Living EUROPE B.V. team may also issue disciplinary sanctions consistent with the provisions of Section 13.3. 13.2 Disputes between Young Living and Distributors The Distributor hereby agrees and acknowledges that common law remedies may not be adequate or appropriate to remedy or compensate for a breach of any

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of its obligations under this Agreement and that consequently the parties expressly contemplate and acknowledge that in the event of a breach of such obligations the Company shall be entitled if it so requires in any particular case to seek injunctive relief (including specific performance and injunction) in addition to any other available remedy, including damages.

13.2.1 Choice of Law This Agreement is governed by and shall be construed in accordance with Dutch law and the parties hereby irrevocably submit to the exclusive jurisdiction of the Dutch Courts in respect of any dispute arising here from or any other contractual relationship between the parties hereto. 13.3 Contractual Sanctions If the Company determines that the Distributor is in breach of any of the terms or conditions of the Distributor Agreement, the Company, may elect to terminate the Distributor Agreement or may impose sanctions for a breach of the Agreement including but not limited to:

13.3.1 Warnings and Sanctions

a. written warning clarifying the meaning and application of a specific policy or procedure and advising that a continued breach will result in further sanctions;

b. probation, which may include requiring a Distributor to take remedial action and will include follow-up monitoring by the Company to ensure compliance with the Distributor Agreement;

c. withdrawal or denial of an award, or other official publication, or restricting participation in the Company sponsored events for a specified period of time or until certain conditions are satisfied by the Distributor;

d. suspension of certain privileges of Distributorship including, but not limited to placing an order, participating in the Company programmes, progressing in the Compensation Plan, or participating as a Sponsor, including participating as an international Sponsor for a specified period of time or until certain conditions are satisfied by the Distributor;

e. withholding part of all of bonuses for a period of time or until certain conditions are satisfied; and/or

f. imposing fines or other penalties permitted by law.

g. Suspension and/or termination of access to the Virtual Office.

h. Termination of the Agreement and your status as a Distributor.

i. Reassign all or part of the Distributor’s organisation.

j. Any other measure expressly allowed within any provision of the Agreement or which Young Living deems practicable to implement and

appropriate to equitably resolve injuries caused partially or exclusively by a Distributor’s policy violation of contractual breach.

During any period that Young Living is investigating any conduct that violates the Agreement, Young Living may withhold all or part of your bonuses and commissions. If your Sales Organisation is involuntarily terminated, you will not be entitled to recover any commissions or bonuses withheld during the investigation period. In situations deemed appropriate by Young Living, the company may institute legal proceedings for monetary and/or equitable relief.

13.3.2 Termination Upon termination of this Agreement the Distributor will:

a. lose all right to purchase products from Young Living at Distributor cost;

b. cease from representing himself/herself as a Distributor of Young Living;

c. lose all rights to his/her Distributor ship and his/her participation in the Compensation Plan, including all future commissions and earnings; and

d. take all other actions reasonably required by Young Living including the discontinuance of the use of Young Livings’ trademarks and service marks.

13.4 Appeals of Contractual Sanctions Following issuance of a sanction or contractual sanction (other than a suspension pending an investigation), you may appeal the sanction to Young Living EUROPE B.V. . The appeal must be in writing and received by the Company within fifteen (15) days from the date of the contractual sanction. If the appeal is not received within the fifteen-day period, the sanction will be final. Submit all supporting documentation with appeal correspondence. The Executive Committee will review and reconsider the sanction, consider other appropriate action, and notify the Distributor in writing of its decision. SECTION 14 INACTIVITY, REACTIVATION, AND CANCELLATION 14.1 Inactivity If you do not meet the personal volume (PV) requirement (50PV) in any particular month, you will be deemed inactive for that month and will not receive commissions or bonuses for the sales generated through the downline organisation. If you remain inactive for a period of twelve (12) consecutive months, you will be effectively terminated as a Young Living Distributor and removed from the Sales Organisation and your Distributor Agreement terminated. Any existing Sales Organisation or downline will in effect “roll-up” to your first active Upline Distributor. To maintain contact with dropped Distributors, your name will be added to a list of inactive Distributors that may be accessed by your first Upline Silver Leader or above. Young Living holds data that

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contains personal data as defined in section 1(1) of the Data Protection Act 1998. This data will include data personal to you, which Young Living will have been obtained in the performance of this Agreement and your activities as a Distributor. You agree that the processing of such personal data by Young Living will be necessary for Young Living to operate the Young Living Agreement. The data collected is used by various entities within Young Living’s corporate group involved in the operation of the distribution network. It may therefore be transferred outside the EEA for the purposes of processing by Young Living. It may also be transferred to other Distributors pursuant to the provisions of this Agreement. Please see our Privacy Policy for further information. 14.2 Reactivation Distributors dropped for inactivity may reactivate their Distributorship by contacting Customer Care Department and requesting reactivation. Reactivating Distributors (Account holder) must thereafter satisfy the PV requirements, and they will be reactivated under their prior Sponsor/Enroller unless otherwise requested. Should the prior Sponsor be inactive, the Distributor will be reactivated under the first active Upline Distributor. Reactivating Distributors have no claim to downline that was lost when they were dropped for inactivity and are treated as a new Distributor. 14.3 Involuntary Cancellation or Termination If your account is involuntarily cancelled or terminated, you will immediately lose all rights to your downline and to any commissions or bonuses generated thereby, including those commissions or bonuses generated during the periods of activity investigated. In this case, you will receive compensation for the last full calendar month in which you were in full compliance with these Policies and Procedures prior to investigation and/or termination of your Sales Organisation. Young Living may, in its sole discretion, terminate, upon notice, the Distributorship of any Distributor who

a. breaches any provision of the Distributor Agreement, the Distributorship Application, or these Policies and Procedures;

b. engages in any conduct that may bring disrepute in any way to Young Living (or any of its officers, agents, or employees), the nutritional supplement and personal care products industry or the direct sales industry; or

c. violates government laws, regulations, ordinances, or any Young Living guideline. Young Living may also, upon notice, terminate the Distributorship of any Distributor who, through his or her capacity as a Distributor, files any legal action proceeding or induces or facilitates any government agency to file any action against Young Living, which Young Living considers, within its sole discretion, to be without legal foundation or basis in fact.

Young Living may also terminate a Sales Organisation at any time and for any reason upon a 30-day written notice. If your Sales Organisation is terminated, you will be notified by mail, the email on record, or other delivery method calculated to reach you at the address on file. Cancellation is effective on the date on which written notice is issued. Upon receipt of this notice, you must immediately cease representing yourself as a Young Living Distributor and immediately return and delete all intellectual property of Young Living, including Reports and other lists of downlines and contact information. If your Sales Organisation is terminated, you may reapply to become a Distributor 12 calendar months from the date of termination. To reapply, you must submit a letter to the Young Living Distributor Conduct and Education Department EUROPE B.V. (to [email protected]) setting forth the reasons why you believe you should be allowed to operate a Sales Organisation. It is within Young Living’s sole discretion whether to permit your request. 14.4 Voluntary Cancellation You may terminate your Distributor Agreement at any time and for any reason. Written notice must be provided to the Company and must include your signature, printed name, Distributor number, address, PIN, and telephone number. If you voluntarily terminate your Distributor Agreement, you may become a Customer or Distributor within 6 months of cancellation in the same position as your original account and under your original sponsor. Additionally, you may reapply to become a Distributor under a new sponsor after six (6) months from your cancellation date. 14.5 Effects of Cancellation Upon cancellation or termination, you release all rights to your Distributor benefits, including the downline and all future commissions and bonuses resulting from the downline sales production. Upon termination, Young Living may at its sole discretion retain your sales organisation, sell it, roll it up to the next active upline Distributor, or dissolve and remove it from the sponsor's downline. SECTION 15 CONTACT INFORMATION 15.1 Contact Information Young Living EUROPE B.V. Peizerweg 97, 9727AJ Groningen, Netherlands Telephone - Toll free from a landline within UK: 0800 9179 438 Not toll free: 0044 (0) 20 3935 9000 Fax: 0044 (0) 2038573431 E-Mail for orders/Customer service: [email protected] Monday – Friday 9:00 – 17:00 (GMT), Wednesday 9:00 – 16:00 (GMT).

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Closed on public holidays. English: [email protected] German: [email protected] Swedish: [email protected] Spanish: [email protected] Polish: [email protected] Finnish: [email protected] Czech/Slovak: [email protected] Russian: [email protected] Lithuanian: [email protected] Croatian: [email protected] Dutch: [email protected] Hungarian: [email protected] Romanian: serviciuclienţ[email protected] Flemish: [email protected] Serbian: [email protected] French: [email protected] Latvian: [email protected] Italian: [email protected] Ukranian: [email protected] Toll free from a landline within: UK: 0800 9179438 Austria: 0800 296 205 Croatia: 0800 222 788 Czech Republic: 800144066 Finland: 0800 913 239 France: 0800 917 791 Germany: 08000 825 049 Italy: 800 790 481 Lithuania: 08800 30914 Poland: 00800 4421254 Russia: 8800 1006419 Slovakia: 0800005216 Spain: 900 812976 Sweden: 0207 93400 Not toll free: 0044 (0) 20 3935 9000 Belgium: +32 33039943 Netherlands: + 31 207975809 Romania: +40 217940852 Croatia: +385 17757170 Hungary: +36 1999 3448 Fax: 0044 (0) 2038573431 Please refer to the YL website https://www.youngliving.com/en_GB/company/contactus for possible updates. SECTION 16 NOTICES & MISCELLANIOUS 16.1 General A notice given to a party under or in connection with this Agreement shall be in writing and sent to the party at the address or to the fax number registered with the Company or as otherwise notified in writing to the other party. 16.2 Methods

The following table sets out methods by which a notice may be sent and, if sent by that method, the corresponding deemed delivery date and time:

Delivery method Deemed delivery date and time

Delivery by hand.

On signature of a delivery receipt or at the time the notice is left at the address.

Pre-paid first class post or other next working day delivery service providing proof of postage.

9.00 am on the second Business Day after posting or at the time recorded by the delivery service whichever is the earlier.

Pre-paid airmail or other service providing proof of postage.

9.00 am on the fifth Business Day after posting or at the time recorded by the delivery service whichever is the earlier.

Fax At the time of transmission

16.3 Receipt For the purpose of clause 16.2 and calculating deemed receipt:

a. all references to time are to local time in the place of deemed receipt; and

b. if deemed receipt would occur in the place of deemed receipt on a Saturday or Sunday or a public holiday when banks are not open for business, deemed receipt is deemed to take place at 9.00 am on the day when business next starts in the place of receipt.

16.4 Information

This clause does not apply to the service of any proceedings or other documents in any legal action or, where applicable, any arbitration or other method of dispute resolution.

16.5 Delays

Young Living shall not be responsible for delays and failures in performing its obligations due to circumstances beyond its reasonable control. This includes, without limitation, acts of God, natural disasters, strikes, labour difficulties, riots, terrorist attack, wars, fire, explosion, flood, death, adverse weather conditions, curtailment or interruption of a source of supply, government decrees or orders, etc. 16.6 Partial Validity

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If any provision of the Distributor Agreement, in its current form or as it may be amended, is found to be invalid, illegal or unenforceable for any reason, only the invalid portion(s) of the provision shall to the extent required be deemed to be deleted be severed. The remaining clauses shall remain valid, enforceable in full force and effect and shall be construed as if such invalid or unenforceable provision never comprised a part of the Agreement. The continuation of a Distributor’s Young Living business or a Distributor’s acceptance of bonuses or commissions constitutes acceptance of any and all amendments. If any invalid, unenforceable or illegal provision of this Agreement would be valid, enforceable and legal if some part of it were deleted, the provision shall apply with the minimum modification necessary to make it legal, valid and enforceable. In the event of any conflict or inconsistency between:

a. these Terms and Conditions; b. the Policies and Procedures; or c. the Compensation Plan,

the Terms and Conditions shall prevail; in the event of any conflict or inconsistency between the Policies and Procedures and the Compensation Plan, the Policies and Procedures shall prevail. 16.7 Waiver

No failure or delay by a party to exercise any right or remedy provided under this Agreement or by law shall constitute a waiver of that or any other right or remedy, nor shall it preclude or restrict the further exercise of that or any other right or remedy. No single or partial exercise of such right or remedy shall preclude or restrict the further exercise of that or any other right or remedy. Young Living never forfeits its right to require compliance with this Agreement or with applicable laws and regulations governing business conduct. Only in rare circumstances will a policy be waived, and the Compliance Officer or another officer of the Company will convey such waivers in writing. The waiver will apply only to that specific case. While Young Living attempts to enforce the Agreement uniformly, failure to enforce any provision of this Agreement does not waive Young Living’s right to enforce any provisions with that same Distributor or any other Distributor. 16.8 Titles Not Substantive

The titles and headings to these Policies and Procedures are for reference only and therefore do not constitute and shall not be construed as substantive terms of the Distributor Agreement.