YOUNG LIVING (EUROPE) LIMITED. Policies and Procedures United Kingdom

Transcription

1 YOUNG LIVING (EUROPE LIMITED Policies and Procedures United Kingdom Published 8th March 2018

2 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 Data Processing Section 3: General Policies 3.1 Distributor Status 3.2 Types of Customers 3.3 Same Household Distributorship and Duplicate Accounts Actions of Household Members or Affiliated Parties Actions of Upline Members 3.4 Corporations, Partnerships, Limited Liability Companies, Trusts, or other Business Entities 3.5 Sale, Transfer, or Assignment Succession 3.6 Separation of a Young Living Distributor Business 3.7 Roll-Up of Marketing Organisation 3.8 Taxes 3.9 Distributor Claims and Representation Indemnification Product Claims Income Claims Liability 3.10 Guidelines and Deceptive Practices Unauthorised Recruiting Recruiting Contacts Beneath First-Level Absolutely Prohibited Non-Compete Confidentiality Agreement Cross-Line Recruiting Bonus Buying and Stacking Repackaging and Relabeling Reporting Policy Violations 3.11 Downline Genealogy Reports & Confidentiality Targeting Other Direct Sellers 3.12 Commercial Outlets 3.13 Trade Shows and Expositions 3.14 International 3.15 NFR 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 Reporting Policy Violations Section 5: Advertising 5.1 Use of Company Materials 5.2 Trademarks and Copyrights 5.3 Media Inquiries 5.4 Distributor-Developed Advertising Materials 5.5 Domain Names and Addresses 5.6 Telephone Solicitation 5.7 Testimonials and Meetings Testimonials Meetings 5.8 YLEO Personal Websites 5.9 Photographs of Distributors 5.10 Internet Policy 5.11 Auction Websites Section 6: Sales Requirements 6.1 Product Sales 6.2 Non-member Customers and Members 6.3 Customers and Sales Requirements 6.4 Excessive Purchases of Inventory Prohibited 6.5 No Price or Territory Restrictions 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 and Bonuses 7.7 Unclaimed Compensation Cheques Section 8: Product Returns 8.1 Return Policy Return Guidelines Rights and duties of YL Members and Customer(s of Distributors Legal rights of Distributors and Customer(s of Distributors Product Kits Return of Promotional Product(s 8.2 Procedures for Returns Section 9: Ordering 9.1 Ordering Methods Phone Fax Mail Young Living Website 9.2 Essential Rewards Autoship programme Essential Rewards Autoship Product Credits Credit Redemption Essential Rewards - Autoship Changes Essential Rewards - Autoship Cancellation Page 2 of 26

3 9.3 General Ordering Policies Back Orders Month-End Order Processing Cut-off Back-Dating Orders Section 10: Shipping 10.1 Shipping Methods and Charges 10.2 Shipping Discrepancies Section 11: Payment 11.1 Methods of Payment 11.2 Insufficient Funds 11.3 Commission and Bonus Release Form Section 12: Distributor Account Management 12.1 Changes to a Distributor Account Sponsor Changes Sponsor/Enroller Changes for Newly Registered Distributors 12.2 Confidentiality Section 13: Dispute Resolution and Disciplinary Action 13.1 Disputes between Distributors 13.2 Disputes between Young Living and Distributors Choice of Law 13.3 Disciplinary Actions Warnings and Sanctions Termination 13.4 Appeals of Disciplinary Action 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 Page 3 of 26

4 UK Young Living (Europe Ltd (the Company, we, our, YL or us. Independent Distributor Policies and Procedures UK-English SECTION 1 INTRODUCTION 1.1 Welcome Welcome to Young Living Essential Oils! 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. It will also be helpful to keep in touch with your upline support team on a regular basis to stay informed of the latest information regarding Young Living s products, business, support programmes, meetings, and events. Be proactive and seek the needed support from your upline sponsor or other upline leader. If you are unable to obtain the support you need, please call Customer Care +44 ( or Freephone (free from a UK landline for assistance. In these Policies and Procedures, you, the Distributor entering the Agreement (as defined below, are referred to as you or the Distributor. Your personal Distributor account along with the downline that you build is referred to as your distributorship or sales organisation. The term Enroller refers to the Distributor, if any, responsible for enrolling a Distributor. The term Sponsor refers to a distributor s immediate upline member. A Distributor account is referred to as being active if the distributor has enrolled as a new distributor or purchased a product within the previous 12 month and is inactive if they have not. Contact Information: Young Living (Europe Ltd. Building 11, Chiswick Park, 566 Chiswick High Road, London W4 5YS, United Kingdom Website: Purpose The purpose of the Independent Distributor Policies and Procedures is: a. To set standards of acceptable business behaviour b. To define the relationship between you and Young Living (YL c. To assist you in building and protecting your 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 (found on either our Website or on the hard copy Young Living Distributor Application, the Enrolment Form and Terms and Conditions, the Policies and Procedures, 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 he/she is 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. I will follow the highest standards of honesty and integrity in the development and operation of my Young Living business. b. I will give prompt and efficient service to anyone to whom I have introduced Young Living s products to. c. I 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. I will not make negative or disparaging remarks about anyone who may be in competition with Young Living, or with their people, products, or organisations. e. I will not engage in activities that may cause losses to Young Living or to any other Young Living Independent Distributor. f. I 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. Page 4 of 26

5 g. I will perform all duties of a sponsor and a leader as I build my Young Living business. h. I will respect the privacy of both my upline and downline Distributors and customers. i. I 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. I will not make any false statements about the available business opportunity when recruiting potential Distributors, nor shall I make any unrepresentative or exaggerated earnings claims. k. I will abide by all rules, regulations, laws, and ordinances that are applicable to the operation of my Young Living business as a Distributor. l. I will, in operating my 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. I will not recruit Young Living members 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. Have a Permanent Residency in the UK and a valid National Insurance Number. c. Read the Young Living Policies and Procedures, the Compensation Plan and other documents listed in 1.3; d. If you prefer not to sign up via our website (see 2.5, it is strongly recommended to do so, complete, sign, and submit a Distributor Application, Agreement and Enrolment Form (in short Application Form to Young Living. The Company reserves the right to reject any application from a new Distributor. According to English law no orders may be fulfilled, and no other Distributors sponsored until the Distributor Application, Agreement and Enrolment Form is received (via post, electronically via mail or fax or by completion of the online sign up process on the Young Living website. 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 Application, Agreement and Enrolment Form (in short Distributor Application Form to Young Living to become a Distributor. This Application Form may be submitted through mail or fax. 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 Ltd 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 ( you will not need to submit a paper application. If you are a UK resident, you must register via the UK website. 2.5 Data Processing The Company will process the Distributor s details for the purposes of orders, general administration, marketing, business creation and development, statistical and management purposes such as calculation of commissions payable, for statistical and research purposes which will include analysis and tracking of transactions and the creation of marketing profiles to enable the Company to serve the Distributor better. To do this, the Distributor agrees that the Company may pass the Distributor s details to group companies, agents and third parties who perform functions on its behalf. Page 5 of 26

6 The Distributor is aware that the Company s headquarters is based outside the EEA, in the USA and agrees that the Distributor s data will be disclosed and located outside the EEA in the USA and understands that countries outside the EEA may not offer the same level of protection for such data as the UK. In the future if the Company sells its business, assets, the Distributor agrees that the Company may disclose, sell, assign, licence any information (including personally identifiable information to third parties as a result of or in preparation for the sale, merger, consolidation, change in control, transfer of substantial assets, reorganisation or liquidation of the Company. The Distributor can request details of these group companies, agents and third parties by contacting the Company at the address above and can obtain from the Company a copy of the information which it holds about the Distributor which is subject to the Data Protection Act 1998 (for which a small charge may be made. The Company confirms that it will comply with the Data Protection Act SECTION 3 GENERAL POLICIES 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: a. placing orders for Young Living products and benefiting from wholesale pricing; b. promoting and selling Young Living products to the general public; c. sponsoring other Distributors; and d. receiving compensation for your sales and sponsoring 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. The Distributor may delegate the performance of his or her services under this Agreement to such third party or parties as may, at the request of the Distributor, be approved by the Company in writing as properly trained and competent for that purpose, provided that (i such third party undertakes to the Company to adhere to the terms of the Agreement and (ii no such delegation shall relieve the Distributor from any obligations or liabilities under the Agreement, the 3.2 Types of Customers Distributor shall be fully responsible for the acts and omissions of its delegates to the same extent as the Distributor is responsible for its own acts and omissions pursuant to this Agreement, and the Distributor shall at all times indemnify and hold the Company indemnified in relation to the acts and omissions of its delegates accordingly. The Distributor has the right to determine his/her own hours of business and, subject to due compliance with the Agreement, his/her methods of operation. Member: The generic term used to identify a Young Living Distributor or customer. Retail 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 - Autoship 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, Agreement and Enrolment form. (See Section Same Household Distributorship and Duplicate Accounts You can have a financial interest in only one account. If Young Living finds that you have an 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. Members of the Distributor s immediate family (which includes spouse, parents and children may together Page 6 of 26

7 operate as one Distributor but may not become separate Distributors unless the Company is aware of their relationship and has given its express prior written approval. Where a Distributorship is held jointly by two persons as a married couple, those persons will be jointly and severally liable for the performance of any obligation under this Agreement. If two Distributors marry, they may choose between several options: a. combine their Distributor organisations (only if one is the other's sponsor, b. sell one of them, c. terminate one of them, d. or maintain separate Young Living Distributorships. Contact Customer Care for help working through the process and gathering any information that may be necessary to comply with this provision. If they chose to maintain separate accounts and one account later goes inactive, it cannot be reactivated if the spouse s account is still active. The joint distributorship will be treated as a joint tenancy with rights of survivorship. Children of a Distributor, who are eligible to contract, may become a separate Independent Distributor, as long as they are the principal participant in that distributorship, meaning the child must be the sole beneficiary of any commission earnings, credits or bonus features offered by YL Actions of Household Members or Affiliated Parties If any member 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 take disciplinary action 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 take disciplinary action 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 Actions of Upline Members If any upline member encourages, aids, or supports a downline Distributor in any activity which, if performed by the upline member, 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 member and Young Living may take disciplinary action against that upline member in pursuant to these Policies and Procedures. If such violations continue, Young Living reserves the right to terminate the upline member s Distributor account. 3.4 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 Business Entity Registration Form. The Business Entity Registration 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. 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 distributorship 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. 3.5 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 $25* processing fee. For your request to be granted, the following criteria must be met: a. You and the receiving party must notify Young Living in writing of your intent to Transfer the sales organisation. This request must be signed, will not be accepted, but fax or PDF copies, with the transferee s signature, will. b. Young Living must approve of the buyer prior to a sale/transfer. c. The buyer or transferee must be (or must become a qualified Young Living Distributor. d. No changes in line of sponsorship can result from the sale or transfer. Page 7 of 26

8 e. Before any transfer or sale will be approved, any debt obligations you may have with Young Living must be satisfied and paid in full. f. 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. Alternatively, the receiving party may choose to cancel his/her existing sales organisation and allow that downline to roll-up to his/her sponsor as provided in Section 3.7. g. Before any Transfer will be approved, you and the receiving party must each be in compliance with all the terms of the Agreement. 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. *The processing fee is converted into pounds Sterling in accordance with the exchange rate used by the Company at the time of conversion. Distributors may contact the Customer Care Department to obtain the current rate of exchange 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. The beneficiary acquires the right to collect all commissions and bonuses of your sales organisation provided that he and/or she meet all of the qualifications necessary for the Compensation Plan and this transfer is completed. If the beneficiary already has an existing distributorship, he/she will be given 90 days to sell or transfer one of the organisations, following the procedure set forth in section 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. Under no circumstances will the downline organisation of divorcing spouses or a dissolving business entity be divided. Similarly, under no circumstances will Young Living split commission and bonus cheques between divorcing spouses or Distributors of dissolving entities. Young Living will recognise only one downline 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 a former spouse or a former entity affiliate has completely relinquished all rights in his/her original Young Living business, he/she is thereafter free to enrol under any sponsor of his/her choosing. However, in such case the former spouse or partner shall have no rights to any Distributors in their former organisation or to any former customers. They must develop the new business in the same manner as would any other new Distributor. 3.7 Roll-Up of Marketing Organisation When a vacancy occurs in a marketing organisation due to the 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 sponsors B, and B sponsors C1, C2, and C3, if B terminates her business then C1, C2, and C3 will rollup to A and become part of A s first level. Page 8 of 26

9 Young Living also reserves the right, in its sole discretion, to sell the sales organisation that has been cancelled or terminated for inappropriate behaviour. 3.8 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. 3.9 Distributor Claims and Representation Indemnification 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 Product Claims You must not make (either orally or in writing any claims which are not expressly stated in Young Living s literature. In particular, you may not make any claim that Young Living s products are useful in the prevention, treatment, or cure 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 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 Distributors 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 Liability The Distributor may not create or incur any liability and/ or obligation of any kind in the name of Young Living or the Company and the Company shall not be liable for any debts or liabilities whatsoever or howsoever incurred by the Distributor, whether or not such liabilities are incurred during the term of this Agreement Guidelines and Deceptive Practices Unauthorised Recruiting You are free to participate in other non-competing business ventures. However, during the term of this Agreement, you may not recruit other Young Living Distributors or customers into any other venture. The term recruit means actual or attempted solicitation, enrolment, encouragement, or effort to influence in any other way, either directly or indirectly or through a third party, another Young Living Distributor to participate in another multilevel marketing, network marketing or direct sales company, network, business or opportunity. This conduct constitutes recruiting even if the Distributor s actions are in response to an inquiry made by another Distributor or Customer Recruiting Distributors may engage in other non-competing business ventures which are defined in clause below. However, Distributors may not promote or sell to existing Distributors or prospective Distributors any products, services or business opportunities not directly Page 9 of 26

10 associated with the Company whether at the Company s presentations, training events or otherwise. Distributors may not take advantage of their knowledge of, other Distributors, customers or Confidential Information (defined in clause , including their knowledge resulting from or relating to their individual lines of sponsorship or genealogy or their position as a Distributor 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 Contacts Beneath First-Level Absolutely Prohibited During the term of the Agreement, and for a period of six months after the expiration every Distributor agrees not to solicit, directly or indirectly, other Distributors whom he/she did not personally sponsor in order to sell, offer to sell, or promote other products, services, or business opportunities, investments, securities, or loans not offered or marketed by Young Living, or take any action that would cause the termination or curtailment of the business relationship between Young Living and such a Young Living distributor. Distributors recognise that because network marketing is conducted through networks of independent contractors dispersed across the entire United States and internationally, and business is commonly conducted via the internet and telephone, an effort to narrowly limit the geographic scope of this nonsolicitation provision would render it wholly ineffective. Therefore, Distributors agree that this non-solicitation provision will apply nationwide and to all international markets in which Young Living Distributors are located Non-Compete During the term of the Agreement, and for a period of six months after the expiration or termination by either party for any reason of the Agreement, every Distributor agrees not to sell, offer to sell, or promote any other business opportunities, products, or services that are considered to be in direct competition with Young Living, or directly or indirectly serve in any capacity as a distributor, representative, consultant, employee, agent, officer, director, shareholder, partner, member or owner of or with another multilevel marketing, network marketing or direct sales company, network, business or opportunity in direct competition with Young Living. Direct competition is hereby defined as any company whose primary product line consists of, or relates to, essential oils (meaning an extract, distillation or derivative, in any amount, of any herb or plant grown, harvested or processed, essential oil blends, or products containing essential oils and/or wolfberry fruit, puree or extract ("Direct Competition", regardless of city, county, state, region, country or other recognised geographic area where Young Living does business. Violation of this policy may, at the Company s discretion, result in the termination of the Distributor Agreement. 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. You may not offer Young Living programs, opportunities, products or services to prospective or existing Young Living customers or distributors in conjunction with any non-young Living programmes, opportunities, product or services. You may not offer any non-young Living programmes, opportunities, products or services at any Young Livingrelated meeting, seminar, convention, webinar, teleconference or other event. You agree that Young Living has a protectable interest in its good will, Confidential Information and trade secret information. You further acknowledge that any breach of your obligations under Sections , , and 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 , , and of the Agreement are reasonable and restrict your conduct only to the extent necessary to protect, maintain, and preserve Young Living s business interests. You further warrant that you understand the legal and other consequences of entering into the covenants and agreements contained in Sections , , and of the Agreement and that the enforcement of these provisions will cause no undue hardship to you. If any restriction contained in Sections , , and of the Agreement are 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 Confidentiality Agreement During the term of this Agreement, Young Living may supply Confidential Information to Distributors, 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, and product purchase information, Distributor lists, manufacturer and supplier information, business reports, Young Living s business, operations and processes, intentions or market opportunities, product information, know-how, designs, trade secrets, Page 10 of 26

11 software, commission or sales reports, marketing strategies and plans, and other financial and business information which would be reasonably understood to be confidential ( 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 Distributors Young Living business. Distributors must keep such Confidential Information confidential, and must not disclose any Confidential Information to any third party directly or indirectly. Distributors must not use the Confidential Information to compete with Young Living or for any purpose other than for promoting Young Living s programme and its products and services. Young Living may require Distributors to sign a Non-Disclosure Agreement before releasing any genealogical or organisational information or other Confidential Information. Upon expiration, nonrenewal, or termination of this Agreement, Distributors must immediately discontinue the use of such Confidential Information and destroy or promptly return to Young Living any Confidential Information in their possession. This confidentiality obligation in clause is irrevocable, survives the termination of the Distributor Agreement, and is subject to legal enforcement including by injunction and award of all costs and fees as necessary Cross-Line Recruiting Actual or attempted cross-line recruiting or sponsoring is strictly prohibited. Cross-line recruiting is defined as the sponsoring or attempted sponsoring of an individual or entity that already has a current Distributor Agreement on file with Young Living within a different line of sponsorship or with a different sponsor. The use of a spouse 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 Bonus Buying and Stacking Bonus Buying includes a. the enrolment of individuals or entities without the knowledge of and/or execution of a Distributor Application, Agreement and 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 or customer when the Distributor or customer is not the account holder of such credit card without prior written approval; e. bank transfer without being the owner of that 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 new Distributors for the purpose of maximising compensation pursuant to Young Living s Compensation Plan; or k. buying products or drop shipping through another s account to increase the pay-out of your distributorship. Bonus buying and stacking are material breaches of these Policies and Procedures and the Distributor Agreement and are strictly and absolutely prohibited Repackaging and Relabeling 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. Such relabeling or repackaging is likely to violate local laws in your country of operation, which could result in severe penalties. You may not use Young Living s products as ingredients in or components of any product for resale Reporting Policy Violations You should report any violations of these Policies and Procedures by any distributor to the Young Living Distributor Compliance Department by ing YLComplianceEurope@youngliving.com or calling the Customer Care Department at (free from a UK landline 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 during the term of this Agreement: Page 11 of 26

12 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. Members with a Young Livingsponsored personal website may receive two free E- Mailed downline reports per month, upon request with all additional reports costing $5* each. Members who wish to have the Report faxed or mailed will pay $5 for the first 10 pages and 10 cents for each additional page. Young Living reserves the right to modify the charges described in this Section Downline Genealogy Reports are optional and may be ordered at any time. Members with a Young Living-sponsored personal website may receive two free ed downline reports per month, upon request with all additional reports costing $5* each. Members who do not have a personal website will pay $5* for each report requested. Members who wish to have the report faxed or mailed will pay $5* for the first 10 pages and 10 cents* per page after 10. Young Living reserves the right to modify the charges described in this Section 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. * The USD fee is converted into pounds Sterling in accordance with the exchange rate used by the Company at the time of conversion. Distributors may contact the Customer Care Department to obtain the current rate of exchange 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 members 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 Commercial Outlets You may display Young Living s products in commercial outlets where professional services are the primary source of revenue and product sales are secondary, such as approved service-oriented establishments, including, but not limited to, health spas and/or beauty shops 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 International As Young Living develops an increasingly international presence, careful attention must be given to countryspecific legal and tax considerations if your developed downline is in other countries. Compliance with foreign laws regarding intellectual property, 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 premarket opening activity may jeopardise the Company s ability to enter a new market and result in loss of opportunity for many other Distributors, 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. 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; Page 12 of 26