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Your Youlab Representative is:DiamantinaClarke
Consultant ID 110738



 
Policies & Procedures
 
 

Youlab
STATEMENT OF
POLICIES AND PROCEDURES
EFFECTIVE October 10, 2016
UNITED STATES
Contents
Section 1 – INTRODUCTION
1.1 - Policies and Consultant Rewards Program Incorporated into Consultant Agreement

1.2 - Changes to the Agreement
1.3 - Policies and Provisions Severable
1.4 - Waiver
Section 2 – BECOMING A CONSULTANT
2.1 - Requirements to Become an Consultant
2.2 - Shopping Spree and Product Purchases
2.3 - Consultant Benefits
2.4 - Term and Renewal of Your Youlab Business
SECTION 3 – OPERATING A YOULAB BUSINESS
3.1 - Consultant Created Marketing Methods and Tools
3.2 - Advertising
3.2.1 - Trademarks and Copyrights
3.2.2 - Youlab Consultant Logo
3.2.3 - Media and Media Inquiries
3.2.4 - Unsolicited Email
3.2.5 - Unsolicited Faxes
3.2.6 - Telephone Directory Listings
3.3 - Online Conduct
3.3.1 - Consultant Websites
3.3.2 - Youlab eStores
3.3.3 - External Website Content

3.3.4 - Youlab Consultant Disclosure
3.3.5 - External Websites Must Exclusively Promote Youlab
3.3.6 - No E-commerce or Stock-and-Sell Retailing
3.3.7 - External Website Termination
3.3.8 - Team Websites and Online Community Youlab
3.3.9 - Domain Names, Email Addresses and Online Aliases
3.3.10 - Youlab Hot-links
3.3.11 - Monetizing External Websites
3.3.12 - Online Classifieds
3.3.13 - eBay and Online Auctions
3.3.14 - Online Retailing
3.3.15 - Banner Advertising
3.3.16 - Spam Linking
3.3.17 - Digital Media Submission (YouTube, iTunes, Photo Bucket, etc.)
3.3.18 - Sponsored Links and Pay-Per-Click Ads
3.3.19 - Domain Names and Email Addresses
3.4 - Social Media
3.4.1 - Consultants Are Responsible for their Postings
3.4.2 - Identification as an Youlab Consultant
3.4.3 - Social Media as a Sales and Promotion Youlab
3.4.4 - Sales and Enrollments from Social Media Sites Are Prohibited
3.4.5 - Deceptive Postings
3.4.6 - Use of Third Party Intellectual Property
3.4.7 - Respecting Privacy
3.4.8 - Professionalism
3.4.9 - Prohibited Postings
3.4.10 - Responding to Negative Posts
3.4.11 - Social Media Sites with Website-like Features

3.4.12 - Promotion of Other Direct Selling Business Through Social Media

3.5 - Business Entities
3.6 - Changes to a Business Entity
3.7 - Change of Sponsor

3.7.1 - Misplacement
3.7.2 - Cancellation and Re-Application
3.7.3 - Waiver of Claims
3.8 - Unauthorized Claims and Actions
3.8.1 - Indemnification
3.8.2 - Product Claims
3.8.3 - Testimonials
3.8.4 - Consultant Rewards Program Claims
3.9 - Income Claims
3.10 - Repackaging and Re-labeling Prohibited
3.11 - Commercial Outlets
3.12 - Trade Shows, Expositions and Other Sales Youlab
3.13 - Conflict of Interest
3.13.2 - Confidential Information
3.13.3 - Targeting the Sales Force of Other Direct Sellers
3.14 - Consultant Participation in Other Network Marketing Programs

3.15 - Errors or Questions
3.16 - Governmental Approval or Endorsement
3.17 - Income Taxes
3.18 - Independent Contractor Status
3.19 - International Marketing
3.20 - Excess Inventory and Bonus Buying
3.21 - Adherence to Laws and Ordinances
3.22 - One Youlab Business Per Consultant and Per Household
3.23 - Actions of Household Members or Affiliated Parties

3.24 - Requests for Records
3.25 - Sale, Transfer or Assignment of Youlab Business
3.26 - Separation of an Youlab Business
3.27 - Sponsoring Online
3.28 - Succession
3.28.1 - Transfer Upon Death of an Consultant
3.28.2 - Transfer Upon Incapacitation of an Consultant
3.29 - Telemarketing Techniques
3.30 - Back Office Access
3.31 - Change of Address, Telephone, and E-Mail Addresses

3.32 - Continuing Development Obligations
3.32.1 - Ongoing Training
3.32.2 - Increased Training Responsibilities
3.32.3 - Ongoing Sales Responsibilities
3.33 - Negative Comments
3.34 - Providing Documentation to Applicants
3.35 - No Territory Restrictions
3.36 - Sales Receipts
Section 4 – PERSONAL & CONFIDENTIAL INFORMATION

4.1 - Handling Personal Information
4.2 - Give the Customer Notice
4.3 – Collect Only What You Need
4.4 – Give the Customer Control
4.5 – Stay Up-To-Date
4.6 – Your Back-Office
4.7 – Share Only If Necessary
4.8 – Be Careful
4.9 – Dispose Of Personal Information Responsibly

4.10 – Be Very Careful with Sensitive Personal Information

SECTION 5 – BONUSES AND COMMISSIONS
5.1 – Adjustment to Bonuses and Commissions
5.2 – Hard Copy Commission Checks

5.3 – Reports
SECTION 6 – PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASE

6.1 – Order Cancellation and Satisfaction Guarantee
6.2 – Return of Inventory and Sales Aids by Consultants Upon Cancellation
6.3 – Montana Residents
6.4 – Procedures for All Returns
Section 7 – DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS
7.1 – Disciplinary Measures
7.2 – Grievances and Complaints
7.3 – Mediation
7.4 – Arbitration
7.5 – Governing Law, Jurisdiction and Venue
7.6 – Louisiana Residents
7.7 – Damage Limitation
7.8 – Liquidated Damages
SECTION 8 – PAYMENT AND SHIPPING
8.1 – Restrictions on Third Party Use of Financial Account Access
8.2 – Sales Taxes
8.3 – Shipping Schedule
SECTION 9 – INACTIVITY AND CANCELLATION
9.1 – Effect of Cancellation
9.2 – Involuntary Cancellation
9.3 – Voluntary Cancellation
9.4 – Non-renewal

9.5 – Chargeback Policy

9.6 – Definitions

Section 1 – INTRODUCTION

1.1 - Policies and Consultant Rewards Program Incorporated into Consultant Agreement

These Policies and Procedures, in their present form an as amended at the sole discretion of Youlab., (hereafter “Youlab” or the “Company), are incorporated into, and form an integral part of the Consultant Agreement. Throughout these Policies, when the term “Agreement” is used, it collectively refers to the Youlab Consultant Agreement Terms & Conditions, these Policies and Procedures, the Youlab Consultant Rewards Program, and the Youlab Business Entity Addendum (applicable only to business entities that apply to become an Consultant). These documents are incorporated by reference into the Youlab Consultant Agreement (all in their current form and as amended by Youlab).

1.2 - Changes to the Agreement

Youlab reserves the right to amend the Agreement and its prices in its sole and absolute discretion. By executing the Consultant Agreement, an Consultant agrees to abide by all amendments or modifications that Youlab makes. Amendments shall be effective immediately after publication of notice and posting the amended provisions, but amended policies shall not apply retroactively to conduct that occurred prior to the effective date of the amendment. Notification of amendments shall be published by electronic mail (email) or posting in Consultants’ Back Offices. The continuation of an Consultant’s Youlab business or an Consultant’s acceptance of bonuses or commissions constitutes acceptance of all amendments.

1.3 - Policies and Provisions Severable

If any provisions of the Agreement, in its current form or as may be amended, is found to be invalid, or unenforceable for any reason, only the invalid portion(s) of the provision shall be severed and the remaining terms and provisions shall remain in full force and effect. The severed provision, or portion thereof, shall be reformed to reflect the purpose of the provision as closely as possible.

1.4 - Waiver

The Company never gives up its right to insist on compliance with the Agreement and with the applicable laws governing the conduct of a business. No failure of a party to exercise any right or power under the Agreement or to insist upon strict compliance by and Consultant with any obligation or provision of the agreement, and no custom or practice of the parties at variance with the terms of the Agreement, shall constitute a waiver of the party’s right to demand exact compliance with the Agreement. The existence of any claim or cause of action of a one party against the other shall not constitute a defense to a party’s right to enforce any term or provision of the Agreement.

Section 2 – BECOMING AN Consultant
2.1 - Requirements to Become an Consultant

To become an Youlab Consultant, each applicant must:
-Be at least 18 (eighteen) years of age;
-Reside in the United States or U.S. Territories or Country that Youlab has officially announced is open for business; -Purchase a Youlab Jump Start Package (optional in North Dakota);
-Submit a properly completed Consultant Agreement to Youlab either in hard copy or online format;
-Submit an IRS form W-9. If a valid W-9 is not received by the Company within 30 days from the date of the Applicant’s enrollment, the enrollment process will not be finalized and the applicant shall not be permitted to become an Consultant, sell the Company’s products, or participate in the Youlab Consultant Rewards Program.

2.2 - Shopping Spree and Product Purchases

No person is required to purchase Youlab products or services to become an Consultant. In order to familiarize new Consultants with Youlab products, services, sales techniques, sales aids, and other matters, the Company requires that they go on a Shopping Spree. Youlab will repurchase resalable kits from any Consultant who terminates his or her Consultant Agreement pursuant to the terms of Section 6.2.

2.3 - Consultant Benefits

Once an Consultant Agreement has been accepted by Youlab, the benefits of the Consultant Rewards Program and the Consultant Agreement are available to the new Consultant. These benefits include the right to:
-Sell Youlab products and services;
-Participate in the Youlab Consultant Rewards Program (receive bonuses and commissions, if eligible);

-Sponsor other individual as Consultants into the Youlab business and thereby, build a marketing organization and progress through the Youlab Consultant Rewards Program;
-Receive periodic Youlab literature and other Youlab communications;
-Participate in Youlab-sponsored support, service, training, motivational and recognition functions, upon payment of appropriate charges, if applicable; and

-Participate in promotional and incentive contests and programs sponsored by Youlab for its Consultants.

2.4 - Term and Renewal of Your Youlab Business

The term of the Consultant Agreement is one year from the date of its acceptance by Youlab. Consultants must renew their Consultant Agreement each year and pay the applicable renewal fee on or before the anniversary date of their Consultant Agreement. If the renewal fee is not paid within 30 days after the expiration of the current term of the Consultant Agreement, the Consultant Agreement will be canceled. The annual renewal fee will be automatically charged to your credit card on file with Youlab unless you opt-out of the automatic enrollment process. Annual renewal fees are optional in North Dakota.

SECTION 3 – OPERATING A Youlab BUSINESS

3.1 - Consultant Created Marketing Methods and Tools

Consultants must adhere to the terms of the Youlab Consultant Rewards Program as set forth in official Youlab literature. Consultants shall not offer the Youlab opportunity through, or in combination with, any other system, program, sales tools, or method of marketing other than that specifically set forth in official Youlab literature. Consultants shall not require or encourage other current or prospective Customers or Consultants to execute any agreement or contract other than official Youlab agreement and contracts to become a Youlab Consultant. Similarly, Consultants shall not require or encourage other current or prospective Customers or Consultants to make any purchase from or payment to, any individual or other entity to participate in the Youlab Consultant Rewards Program other than those purchases or payments identified as recommended or required in official Youlab literature.

3.2 - Advertising

All Consultants shall safeguard and promote the good reputation of Youlab and its products. The marketing and promotion of Youlab, the Youlab opportunity, the Consultant Rewards Program, and Youlab products must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices.

To promote both the products and services, and the tremendous opportunity Youlab offers, Consultants must use only the Sales Tools produced by Youlab. The Company has carefully designed its products, product labels, Consultant Rewards Program, and Sales Tools to ensure that they are promoted in fair, truthful manner that they are substantiated, and the material complies with the legal requirements of federal and state laws. Accordingly, Consultants must not produce their own sales Tools (for the website policy, see the Policies under Section 3.3).

3.2.1 - Trademarks and Copyrights

The name of “Youlab” and other names as may be adopted by Youlab are proprietary trade names, trademarks and service marks of the company. As such, these marks are of great value to Youlab and are licensed to Consultants for their use only in an expressly authorized manner. Youlab will not allow the use of its trade names, trademarks, designs, or symbols, or any derivatives of such marks, by any person, including Youlab Consultants, in any unauthorized manner without its prior, written permission.

The content of all Company sponsored events is copyrighted material. Consultants may not produce for sale or distribution any recorded Company events and speeches without written permission from Youlab, nor may Consultants reproduce for sale or for personal use of any recordings of the Company – produced audio or video tape presentations.

As an Consultant, you may use the “Youlab” name in the following manner;

Example: Consultant’s Name Youlab Consultant

Example:
Alicia Smith Youlab Consultant

Consultants may not use the “Youlab” name in any form in your team name, a tagline, an external website name, your personal website address or extension, in an e-mail address, as a personal name, or as a nickname. Additionally, only use the phrase Youlab Consultant in your phone greeting or on your answering machine to clearly separate your Independent Youlab business from Youlab.

3.2.2 - Youlab Consultant Logo

If you use a Youlab logo in any communication, you must use only the Consultant version of the Youlab logo available in your Back Office.

3.2.3 - Media and Media Inquiries

Consultants must not attempt to respond to media inquiries regarding Youlab, its products or services, or their independent Youlab business. All inquiries by any type of media must be immediately referred to Youlab’s Marketing Department at PR@youlabglobal.com. This policy is designed to assure that accurate and consistent information is provided to the public as well as proper public image.

3.2.4 - Unsolicited Email

Youlab does not permit Consultants to send unsolicited commercial emails unless such emails strictly comply with applicable laws and regulations including, without limitation, the federal CAN SPAM Act. Any email sent by an Consultant that promotes Youlab, the Youlab opportunity, or Youlab’s products and services must comply with the following:

- There must be a functioning return email address to the sender.
- There must be a notice in the email that advises the recipient that he or she may reply to the email, via the functioning return email address, to request that future email solicitations or correspondence not be sent to him or her ( a functioning “opt-out” notice).
- The email must include the Consultant’s physical mailing address.
- The email must clearly and conspicuously disclose that the message is an advertisement or solicitation.
- The use of deceptive subject lines and/or false header information is prohibited.
- All opt-out requests, whether received by email or regular mail, must be honored. If an Consultant receives an opt-out request from a recipient of an email, the Consultant must forward the opt-out request to the company.

Youlab may periodically send commercial emails on behalf of Consultants. By entering into the Consultant Agreement, Consultant agrees that the Company may send such emails and that the Consultant’s physical and email address will be included in such emails as outlined above. Consultants shall honor opt-out requests generated as a result of such emails sent by the Company.

3.2.5 - Unsolicited Faxes

Except as provided in this section, Consultants may not use or transmit unsolicited faxes in connection with their Youlab business. The term “unsolicited faxes” means the transmission via telephone facsimile or computer of any material or information advertising or promoting Youlab, its products, its Consultant Rewards Program or any other aspect of the

company which is transmitted to any person, except that these terms do not include a fax: (a) to any person with that person’s prior express invitation or permission; or (b) to any person with whom the Consultant has an established business or personal relationship. The term “established business or personal relationship” means a prior or existing relationship formed by a voluntary two way communication between an Consultant and a person, on the basis of; (a) an inquiry, application, purchase or transaction by the person regarding products offered by such Consultant; or (b) a personal or familiar relationship, which relationship has not been previously terminated by either party.

3.2.6 - Telephone Directory Listings

Consultants may list themselves as an “Youlab Consultant” in the white or yellow pages of the telephone directory, or with online directories, under their own name. No Consultant may place telephone or online directory display ads using Youlab’s name or logo. Consultants may not answer the telephone by saying “Youlab”, “Youlab Corporate”, or in any other manner that would lead the caller to believe that he or she has reached the Youlab corporate offices. If an Consultant wishes to post his/her name in a telephone or online directory, it must be listed in the following format:

Consultants Name Youlab Consultant

3.3 - Online Conduct

3.3.1 - Consultant Websites

Consultants may develop their own websites to promote Youlab’s products and their business (an “External Website”). However, any Consultant who wishes to use an External website must submit a beta site to the Company for review and receive the Company’s prior written approval before going live with their External Website. External Websites must adhere to the Company’s Policies and Procedures. However, no orders or enrollments may be placed through an External Website; order and enrollments may only be placed through your Company provided eStore. You may link an approved External Website to the order entry and enrollment screens of your Company provided eStore to facilitate sales and enrollments should you wish to do so. Any changes to an approved External Website must be submitted to Youlab, and the Consultant must receive Youlab’s written consent to make the change before going live with the change.

3.3.2 - Youlab eStores

Consultants receive a Youlab eStore subscription to facilitate online buying experience for your customers and enrollments for prospects. Consultants may not alter the branding, artwork, look, or feel of their eStore, and may not use their eStore to promote, market or sell non-Youlab products, services or business opportunities. Specifically, you may not alter the look (placement, sizing etc.) or functionality of the Youlab Logo, your name, artwork, logos, graphics, and original text. Youlab reserves the right to receive analytics and information regarding the usage of your website. You may change the default ID for your eStore and choose a uniquely identifiable website name, but this name must not:

- Be confused with other portions of the Youlab corporate website;
- Confuse a reasonable person into thinking they have landed on an Youlab corporate page;
- Be confused with an Youlab name or product names;
- Contain any discourteous, misleading, or off-color words or phrases that may damage Youlab’s image.

3.3.3 - External Website Content

Consultants are solely responsible and liable for their own External Website content, messaging, claims, and information must ensure that it appropriately represents and enhances the Youlab brand and adheres to Youlab’s Policies and Procedures. Additionally, External Websites must not contain disingenuous popup ads or promotions or malicious code. Decisions and corrective actions in this area are at the sole discretion of Youlab.

3.3.4 - Youlab Consultant Disclosure

To avoid confusion, the following three elements must be prominently displayed at the top of every page of your External Website:
- Your name with the term “Youlab Consultant” below your name
- A button that redirects people from your External Website to either the Youlab Corporate Website or your Youlab eStore.

Although Youlab brand themes and images are desirable for consistency, anyone landing on any page of an Consultant’s External Website must clearly understand that they are at an Consultant site, and not on Youlab Corporate Website or a Youlab eStore.

3.3.5 - External Websites Must Exclusively Promote Youlab

Your Youlab External Website must contain content and information that is exclusive to Youlab. You may not advertise other products or services other than the Youlab product line and the Youlab opportunity.

3.3.6 - No E-commerce or Stock-and-Sell Retailing

An Consultant’s External Website must only facilitate the entry into his/her Youlab eStore. Consultants may not facilitate an E-commerce environment that would facilitate a stock-and-sell retailing model. All orders must be placed through your official eStore. You may link your External Website to your Youlab eStore.

3.3.7 - External Website Termination

If the independent Youlab business of an Consultant who has received authorization to create and post an External Website is voluntarily or involuntarily cancelled / terminated for any reason, or if the Company revokes its authorization allowing the Consultant to maintain an External Website, the Consultant shall assign the URL to his/her External Website to the Company within three (3) days from the date of the cancellation and re-direct all traffic to the site as instructed by the Company.

The Company may withdraw its approval of any External Website at its discretion. Consultants waive any and all claims against Youlab, its owners, executives, and management for any claims or damages arising from the approval and/or revocation.

3.3.8 - Team Websites and Online Community Youlab

“Team Websites” and “Online Community Youlab” such as a private Facebook group, do not require the Company’s pre- approval. A “Team Website” or “Online Community Youlab” must be either password protected or invite only and available only to Consultants within a single line of sponsorship. Team Websites and Online Community Youlab must serve only for communication, training, recognition, connecting and motivating Consultants within that line of sponsorship. Team Websites and Online Community Forms may not be used for recruiting or sales purposes, and may not be shared with prospective Consultants. Team Websites and Online Community Youlab must comply with all of Youlab’s Policies and Procedures.

3.3.9 - Domain Names, Email Addresses and Online Aliases

You are not allowed to use or register including but not limited to, Youlab, Youlab or any of Youlab’s trademarks, product names, or any derivatives, for any internet domain name, email address, or online aliases. Additionally, you may not use or register domain names, email addresses, and/or online aliases that could cause confusion, or be misleading or deceptive, in that they cause individuals to believe or assume the communication is from, or is the property of Youlab.

If an Consultant violates this policy, the Consultant shall assign and transfer the domain name, email address, social media handle or name, online alias to the Company immediately upon the Company’s demand, and the Consultant shall be responsible for paying any and all fees / costs, including but not limited to attorney’s fees and costs and transfer costs, associated with the assignment and transfer. This remedy is in addition to, and not in place of, other remedies and/or disciplinary measures that the Company may take pursuant to these policies.

3.3.10 - Youlab Hot-links

When directing readers to your External Website it must be evident from a combination of the link, and the surrounding context, to a reasonable reader that the link will be resolving to the site of a Youlab Consultant. Attempts to mislead web traffic into believing they are going to a Youlab Corporate Website, when in fact they land at an External Consultant

Website will not be allowed. The determination as to what is misleading or what constitutes a reasonable reader will be at the sole discretion of Youlab.

3.3.11 - Monetizing External Websites
Consultants may not monetize their External Website through affiliate programs, adSense or similar programs. 3.3.12 - Online Classifieds

You may use online classifieds (including Craigslist) for informing the public about the Youlab business opportunity by using Youlab approved templates, images, and content. These templates will identify you as a Youlab Consultant. If a link or URL is provided, it must link to your eStore.

3.3.13 - eBay and Online Auctions

Youlab’s products and/or tools may not be listed on eBay or other online auctions, nor may Consultants enlist of knowingly allow a third party to sell Youlab products on eBay or other online auctions.

3.3.14 - Online Retailing

Consultants may not list or sell Youlab products on any online retail store or E-commerce site, nor may you enlist or knowingly allow a third party to sell Youlab products on any online retail store or E-commerce site.

3.3.15 - Banner Advertising

You may place banner advertisements on a company-approved third party website provided you use Youlab approved templates, images and/or banners. All banner advertisements must link only to your eStore. Consultants may not use blind ads (ads that do not disclose the identity of the Company) or web pages that make product or income claims that are ultimately associated with Youlab products or the Youlab Opportunity.

3.3.16 - Spam Linking

Spam linking is defined as multiple consecutive submissions of the same or similar content into blogs, wikis, guest books, websites or other publicly accessible online discussion boards is not allowed. This includes blog spamming, blog comment spamming and/or spamdexing. Any comments you make on blogs, Youlab Corporate pages, guest books etc., must be unique, informative and relevant.

3.3.17 - Digital Media Submission (YouTube, iTunes, Photo Bucket, etc.)

Consultants may upload, submit or publish Youlab related video, audio or photo content that they develop and create as long as it aligns with Youlab values, contributes to the Youlab community greater good and is in compliance with Youlab’s Policies and Procedures. All submissions must clearly identify you as a Youlab Consultant in the content itself and in the content description tag, must comply with all copyright/legal requirements, and must state that you are solely responsible for the content. Consultants may not upload, submit or publish any content (video, audio, presentations or any computer files) received from Youlab or captured at official Youlab events or in buildings owned or operated by Youlab without prior written permission.

3.3.18 - Sponsored Links and Pay-Per-Click Ads

Sponsored links or pay-per-click ads (PPC) are acceptable. The destination URL must be to either the sponsoring Consultant’s eStore or to the sponsoring Consultant’s External Website. The display URL must also be to either the sponsoring Consultant’s eStore or to your External Website, and must not portray any URL that could lead the user to believe they are being directed to a Youlab Corporate site, or be inappropriate or misleading in any way.

3.3.19 - Domain Names and Email Addresses

Except as set forth in the Consultant Website Agreement, Consultants may not use or attempt to register any of Youlab’s trade names, trademarks, service names, service marks, product names, the Company’s name, for any Internet domain name, email address, or name or address.

3.4 - Social Media

Social Media may be used by Consultants to share information about the Youlab products and opportunity. However, Consultants who elect to use Social Media must adhere to the Policies and Procedures in all respects.

Social Media sites may not be used to sell or offer to sell specific Youlab products or services. Profiles an Consultant generates in any social community where Youlab is discussed or mentioned must clearly identify the Consultant as a Youlab Consultant, and when an Consultant participates in those communities, Consultants must avoid inappropriate conversations, comments, images, video, audio, applications or any other adult, profane, discriminatory or vulgar content. The determination of what is inappropriate is at Youlab’s sole discretion, and offending Consultants will be subject to disciplinary action. Banner ads and images used on these sites must be current and must come from the Youlab approved library. If a link is provided, it must link to the posting Consultant’s eStore or the Consultant’s Company approved External Website. Consultants may not use blog spam, spamdexing or any other mass-replicated methods to leave blog comments. Comments Consultants create or leave must be useful, unique, relevant and specific to the blog’s article.

3.4.1 - Consultants Are Responsible for their Postings

Consultants are personally responsible for their postings and all other online activity that relates to Youlab. Therefore, even if an Consultant does not own or operate a blog or Social Media site, if an Consultant posts to any such site that relates to Youlab or which can be traced to Youlab, the Consultant is responsible for the posting. Consultants are also responsible for postings that appear on any blog or Social Media site that the Consultant owns, operates, or controls.

3.4.2 - Identification as a Youlab Consultant

You must disclose your full name on all Social Media postings, and conspicuously identify yourself as an Consultant of Youlab. Anonymous postings or use of an alias is prohibited.

3.4.3 - Social Media as a Sales and Promotion Youlab

Some Social Media sites promote commercial use while others prohibit it. It is each Consultant’s responsibility to learn and abide by the Social Media site’s terms of use and policies. If the social media site does not allow its site to be used for commercial activity, you must abide by the sites terms of use. Social Media sites are relationship-building sites.

3.4.4 - Sales and Enrollments from Social Media Sites Are Prohibited

Online sales and/or enrollments may only be generated from an Consultant’s Youlab eStore. Likewise, Consultants shall not use any Social Media site to explain the Youlab Consultant Rewards Program or any component of the Consultant Rewards Program.

3.4.5 - Deceptive Postings

Postings that are false, misleading, or deceptive are prohibited. This includes, but is not limited to, false or deceptive postings relating to the Youlab business opportunity, Youlab’s products and services, Youlab’s Consultant Rewards Program, and/or your biographical information and credentials.

3.4.6 - Use of Third Party Intellectual Property

If you use the trademarks, trade names, service marks, copyrights, or intellectual property of any third party in any posting, it is your responsibility to ensure that you have received the proper license to use such intellectual property and pay the appropriate license fee. All third-party, and you must adhere to any restrictions and conditions that the owner of the intellectual property places on the use of its property.

3.4.7 - Respecting Privacy

Always respect the privacy of others in your postings. Consultants must not engage in gossip or advance rumors about any individual, company, or competitive products or services. Consultants may not list the names of other individuals or entities on their posting unless they have the written permission of the individual or entity that is the subject of their posting.

3.4.8 - Professionalism

You must ensure that your postings are truthful and accurate. This requires that you fact-check all material you post online. You should also carefully check your postings for spelling, punctuation, and grammatical errors. Use of offensive language is prohibited.

3.4.9 - Prohibited Postings

Consultants may not make any postings, or link to any postings or other material that:
- Is sexually explicit, obscene, or pornographic;
- Is offensive, profane, hateful, threatening, harmful, defamatory, libelous, harassing, or discriminatory (whether based on race, ethnicity, creed, religion, gender, sexual orientation, physical disability, or otherwise);
- Is graphically violent, including any violent video game images;
- Is solicitous of any unlawful behavior;
- Engages in personal attacks on any individual, group, or entity;
- Is in violation of any intellectual property rights of the Company or any third party.

3.4.10 - Responding to Negative Posts

Do not converse with one who places negative posts against you, other Consultants, or Youlab. Report negative posts to the Company at Info@youlabglobal.com. Responding to such negative posts often simply fuels a discussion with someone carrying a grudge that does not hold themselves to the same high standards as Youlab, and therefore damages the reputation and goodwill of Youlab.

3.4.11 - Social Media Sites with Website-like Features

Because some social media sites are particularly robust, the distinction between a social media site and a website may not be clear-cut. Youlab therefore reserves the sole and exclusive right to classify certain social media sites as websites and require that Consultants using, or who wish to use, such sites adhere to the Company’s policies relating to independent websites.

3.4.12 - Promotion of Other Direct Selling Business Through Social Media

In addition to meeting all other requirements specified in these Policies, should an Consultant utilize any form of social media, including but not limited to Facebook, Twitter, LinkedIn, YouTube, or Pinterest, the Consultant agrees to each of the following:
- No product sales or enrollments may occur on any social media site. To generate sales, a social media site must link only to the Consultant’s Youlab eStore.

- Other than Pinterest and similar social media sites, any social media site that is directly or indirectly operated or controlled by an Consultant that is used to discuss or promote Youlab’s products, or the Youlab opportunity may not link to any website, social media site, or site of any other nature, other than the Consultant’s Youlab eStore.
- During the term of this agreement for a period of 12 calendar months thereafter, an Consultant may not use any social media site on which they discuss or promote, or have discussed or promoted, the Youlab business or Youlab’s products to directly or indirectly solicit Youlab Consultants for another direct selling or network marketing program (collectively, “direct selling”). In furtherance of this provision, an Consultant shall not take any action that may reasonably be foreseen to result in drawing an inquiry from other Consultants relating to the Consultant’s other direct selling business activities. The provision in this bullet point does not apply to an Consultant’s personally sponsored Consultants. Violation of this provision shall constitute a violation of the Non-solicitation Policy in Section 3.13.1.

- An Consultant may post or “pin” photographs of Youlab products on a social media site, but only photos that are provided by Youlab and downloaded from the Consultant’s Back Office may be used.

- If an Consultant creates a business profile page on any social media site that promotes or relates to Youlab, its products, or opportunity, the business profile must relate exclusively to the Consultant’s Youlab business and Youlab products. If the Consultant’s Youlab business is cancelled for any reason or if the Consultant becomes inactive, the Consultant must deactivate the business profile page.

3.5 - Business Entities

A corporation, limited liability company, partnership or trust (collectively referred to in this section a “Business Entity”) may apply to be a Youlab Consultant by submitting an Consultant Agreement along with a properly completed Business Entity Addendum and properly completed IRS for W-9. The Business Entity, as well as all shareholders, members, managers, partners, trustees, or other parties with any ownership interest in, or management responsibilities for, the Business Entity (collectively “Affiliated Parties”) are individually, jointly and severally liable for any indebtedness to Youlab, compliance with the Youlab Policies and Procedures, the Youlab Consultant Agreement, and other obligations to Youlab.

To prevent circumvention of Section 3.25 (regarding transfers and assignments of a Youlab business) and 4.5, (regarding Sponsorship Changes), if any Affiliated Party wants to terminate his or her relationship with the Business Entity or Youlab, the Affiliated Party must terminate his or her affiliation with the Business Entity, notify Youlab in writing that he or she has terminated his/her affiliation with the Business Entity, and must comply with the provisions of Section 3.25. In addition, the Affiliated Part foregoing their interest in the Business Entity may not participate in any other Youlab business for six consecutive calendar months in accordance with Section 3.7.2. If the Business Entity wishes bring on any new Affiliated Party, it must adhere to the requirements of Section 3.25.

The modifications permitted within the scope of this paragraph does not include a change of sponsorship. Changes of sponsorship addressed in Section 3.7, below. There is a $25.00 fee for each change requested, which must be included with the written request and the completed Consultant Agreement. Youlab may, at its discretion, require notarized documents before implementing any changes to an Youlab business. Please allow thirty (30) days after the receipt of the request by Youlab for processing.

3.6 - Changes to a Business Entity

Each Consultant must immediately notify Youlab of all changes to type of business entity they utilize in operating their businesses and the additional or removal of business Affiliated Parties.

3.7 - Change of Sponsor
Youlab prohibits changes in sponsorship except in the following circumstances:

3.7.1 - Misplacement

In cases in which the new Consultant is sponsored by someone other than the individual he or she was led to believe would be his or her sponsor, an Consultant may request that he or she be transferred to another organization with his or her entire marketing organization intact. Requests for transfer under this policy will be evaluated on a case-by-case basis and must be made within twenty four (24) hours from the date of enrollment. The Consultant requesting the change has the burden of proving that he or she was placed beneath the wrong sponsor. It is up to Youlab’s discretion whether the requested change will be implemented.

3.7.2 - Cancellation and Re-Application

An Consultant may legitimately change organizations by voluntarily canceling his or her Youlab business and remaining inactive (i.e., no purchased of Youlab products for resale, no sales of Youlab products, no sponsoring, no attendance at any Youlab functions, participation in any other form of Independent Activity, or operation of any other Youlab business, no income from the Youlab business) for six (6) full consecutive calendar months. Following the six-month period of inactivity, the former Consultant may reapply under a new sponsor, however, the former Consultant’s downline will remain in their original line of sponsorship. It is forbidden to cross promote to Consultants from your previous organization.

3.7.3 - Waiver of Claims

In cases wherein the appropriate sponsorship change procedures have not been followed, and a downline organization has been developed in the second business developed by an Consultant, Youlab reserves the sole and exclusive right to determine the final disposition of the downline organization. Resolving conflicts over the proper placement of a downline that has developed under an organization that has improperly switched sponsors is often extremely difficult. Therefore, ConsultantS WAIVE ANY AND ALL CLAIMS AGAINST Youlab, ITS OFFICERS, DIRECTORS, OWNERS, EMPLOYEES, AND AGENTS THAT RELATE TO OR ARISE FROM Youlab’S DECISION REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION THAT DEVELOPS BELWO AN Consultant THAT HAS IMPROPERLY CHANGED LINES OF SPONSORSHIP.

3.8 - Unauthorized Claims and Actions

3.8.1 - Indemnification

An Consultant is fully responsible for all of his or her verbal and written statements made regarding Youlab products, services, and the Consultant Rewards Program that are not expressly contained in official Youlab materials. This includes statements and representations made through all sources of communication media, whether person-to-person, in meetings, online, through Social Media, in print, or any other means of communication. Consultants agree to indemnify Youlab and Youlab’s directors, officers, employees, and agents, and hold them harmless from all liability including judgments, civil penalties, refunds, attorney fees, court costs, or lost business incurred by Youlab as a result of the Consultant’s unauthorized representations or actions. This provision shall survive the termination of the Consultant Agreement.

3.8.2 - Product Claims

Consultants must not make claims, including but not limited to testimonials, about Youlab’s products or services that are not contained in official Youlab literature or posted on Youlab’s official website. Under no circumstances shall any Consultant state or imply that any Youlab product is useful in the diagnosis, treatment, cure, or prevention of any disease, illness, injury, or other medical condition. Consultants may not make claims that Youlab products have therapeutic or curative properties except those contained in official Youlab literature.

3.8.3 - Testimonials

Consultants shall not make any testimonials relating to their experience with Youlab products unless sanctioned by official Youlab literature or posted on Youlab’s official website or disclaim that the results are what the Consultant experienced and results may very and are not verified by the Company.

3.8.4 - Consultant Rewards Program Claims

When presenting or discussing the Youlab Consultant Rewards Program, you must make it clear to prospects that financial success in Youlab requires commitment, effort, and sales skill. Conversely, you must never represent that one can be successful without diligently applying themselves. Examples of misrepresentation in this area include but not limited to:
- It’s a turnkey system;

- The system will do the work for you;
- Just get in and your downline will build through spillover; - Just join and I’ll build your downline 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 Consultant Rewards Program. It is important that you do not make these, or any other representations, that could lead a prospect to believe that they can be successful as an Consultant without commitment, effort, and sales skill.

3.9 - Income Claims

Because Youlab Consultants do not have the data necessary to comply with the legal requirements for making income claims, an Consultant, when presenting or discussing the Youlab opportunity or Consultant Rewards Program to a

prospective Consultant, may not make income projections, income claims, or disclose his or her Youlab business (including, but not limited to, showing of checks, copies of checks, bank statements, or tax records).

3.10 - Re-packaging and Re-labeling Prohibited

Youlab products may only be sold in their original packaging. Consultants may not repackage, re-label, or alter the labels on Youlab products. Tampering with labels/packaging could be a violation of federal and state laws, and may result in civil or criminal liability. Consultants may affix a personalized sticker with your personal/contact information to each product or product container, as long as you do so without removing existing labels or covering any text, graphics, or other material on the product label.

3.11 - Commercial Outlets

Fairness and Equal Opportunity is paramount at Youlab. Youlab forbids the sale of Youlab products in any retail outlets without prior written consent from Youlab. Retail outlets include, but are not limited to, retails stores, commercial locations, business offices, doctors’ offices, and or other retail locations that sell goods and services. Written consent is given at the sole discretion of Youlab. Written consent can be revoked at any time at the discretion of Youlab. Furthermore, if written consent is given, Youlab products must be sold at full retail value. Retail value is the price that a Customer or Consultant can purchase the product for with normal pricing not including bulk pricing or wholesale pricing. Offering Youlab products at a discount may result in the immediate termination of consent to sell in commercial outlets. Written consent can be obtained by emailing Compliance@youlabglobal.com.

3.12 - Trade Shows, Expositions and Other Sales Youlab products

Consultants may display and/or sell Youlab products at trade shows and profession expositions. If an Consultant is selling Youlab products he or she must sell the product at full retail value.

3.13 - Conflict of Interest

Youlab Consultants are free to participate in other non-competing multilevel or network marketing business ventures or marketing opportunities (collectively “network marketing”). Any program or business that sells products in the same generic categories as Youlab products (i.e., nutritional health products) is deemed to be competing with Youlab, regardless of difference in cost, quality or other distinguishing factors. However, during the term of this Agreement, Consultants may not directly or indirectly recruit other Youlab Consultants or Customers for any other competing or non-competing network marketing business.

Following the cancellation or transfer of an Consultant’s Consultant Agreement for any reason, and for a period of twelve calendar months thereafter, with the exception of an Consultant who personally sponsored by the former Consultant, a former Consultant may not Recruit any Youlab Consultant or Customer for any other competing or non-competing network marketing business. Consultants and the Company recognize 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 internet and telephone, an effort to narrowly limit the geographic scope of this non-solicitation provision would render it wholly ineffective. Therefore, Consultants and Youlab agree that this non-solicitation provision shall apply nationwide and to all international markets in which Consultants are located.

The term “Recruit” means the actual or attempted sponsorship, solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another Youlab Consultant or Customer to enroll or participate in another multilevel marketing, network marketing or direct sales opportunity.

3.13.2 - Confidential Information

Confidential information includes, but is not limited to, the identities of Youlab Customers and Consultants, contact information of Youlab Customers and Consultants, Consultants’ personal and/or group sales volumes, and Consultant rank and/or achievement levels. Confidential information is, or may be available to Consultants in their respective Back- Offices. Consultant access to such Confidential Information is password protected, and Confidential Information proprietary business trade secrets belonging to Youlab. Such Confidential Information is provided to Consultants in the strictest of confidence and is made available to Consultants for the sole purpose of assisting Consultants in working with

their respective sales organizations in the development of their Youlab business. Each Consultant and Youlab agrees that, for this agreement of confidentiality and nondisclosure, Youlab would not provide Confidential Information to the Consultant

To protect Confidential Information, Consultants shall not, on his or her own behalf, or on the behalf of any other person, partnership, association, corporation or other entity:
- Directly or indirectly disclose any Confidential Information to any third party;
- Directly or indirectly disclose the password or other access code to his or her Back Office to any third party;

- Use any Confidential Information to compete with Youlab, or for any other purpose other than to promote his or her Youlab business;
- Recruit or solicit any Consultant or Customer of Youlab listed on any report or in the Consultant’s Back Office, or in any manner attempt to influence or induce any Consultant or Customer of Youlab to alter their business relationship with Youlab; or

- Use or disclose to any person, partnership, associate, corporation, or other entity any Confidential Information.

3.13.3 - Targeting the Sales Force of Other Direct Sellers

Youlab does not condone Consultants specifically or consciously targeting the sales force of another direct sales company to sell Youlab products or to become an Consultant for Youlab, nor does Youlab condone Consultants’ 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 an Consultant engage in such activity, the Consultant bears the risk of being sued by the other direct sales company. If any lawsuit, arbitration or mediation is brought against an Consultant by a third party alleging that he or she engaged in inappropriate recruiting activity of its sales force or Customers, or in any way violated their contract with the third party, Youlab will not pay any of the Consultant’s defense costs or legal fees, nor will Youlab indemnify the Consultant’s for any judgment, award, or settlement. Should the third party bring or threaten legal action against Youlab based on the conduct of the Consultant, the Consultant agrees that it shall indemnify Youlab for all judgments, settlements, payments of any other nature, litigation costs, and attorney’s fees that Youlab incurs in relation into such legal action or threat of legal action.

3.14 - Consultant Participation in Other Network Marketing Programs

If an Consultant is engaged in other non-Youlab business or Network Marketing program, it is the responsibility of the Consultant to ensure that his or her Youlab business is operated entirely separate and apart from all other businesses and/ or Network Marketing programs. To this end, the Consultant must adhere to the following:
- Consultants must not sell, or attempt to sell, any competing non-Youlab programs, products or services that are sold through another Network Marketing Program to Youlab Customers or Consultants. Any products in the same generic categories as Youlab products (i.e., nutritional health products) is deemed to be competing regardless of difference in cost, quality or other distinguishing factors.

- Consultants shall not display Youlab promotional material, sales aids, products or services with or in the same location as any non- Youlab promotional material or sales aids, products or services.
- Consultants shall not offer the Youlab opportunity, products or services to prospective or existing Customers or Consultants in conjunction with any non- Youlab program, opportunity, product or service.

- Consultants may not offer any non- Youlab opportunity, products, services or opportunity at any Youlab related meeting, seminar, convention, webinar, teleconference, or other function.

3.15 - Errors or Questions

If an Consultant has questions about or believes any errors have been made regarding commissions, bonuses, genealogy lists, enrollments, or charges, the Consultant must notify Youlab in writing within 60 days of the date of the purported error or incident in question. Youlab will not be responsible for any errors, omissions or problems not reported to the Company within 60 days.

3.16 - Governmental Approval or Endorsement

Neither federal nor state regulatory agencies nor officials approve or endorse any direct selling or network marketing companies or programs. Therefore, Consultants shall not represent or imply that Youlab or its Consultant Rewards Program have been “approved,” “endorsed” or otherwise sanctioned by any governmental agency.

3.17 - Income Taxes

Each Consultant is responsible for paying local, state and federal taxes on any income generated as an Consultant. If an Consultant’s Youlab business is tax exempt, the Federal tax identification number must be provided to Youlab. Every year, Youlab will provide an IRS Form 1099 MISC (Non-employee Compensation) earnings statement to each U.S. resident who: 1) Had earnings of over $600 in the previous calendar year; or 2) Made purchases during the previous calendar year in excess of $5,000.

3.18 - Independent Contractor Status

Consultants are independent contractors. The agreement between Youlab and its Consultants does not create an employer/ employee relationship, agency, partnership, or joint venture between the Company and the Consultant. Consultants shall not be treated as an employee for his or her services or for Federal or State tax purposes. All Consultants are responsible for paying local, state, and federal taxes due from all compensation earned as an Consultant of the Company. An Consultant has no authority (expressed or implied), to bind the Company to any obligation. Each Consultant shall establish his or her own goals, hours, and methods of sale, so long as he or she complies with the terms of the Consultant Agreement, these Policies and Procedures, and applicable laws.

3.19 - International Marketing

Consultants are authorized to sell products and enroll Customers or Consultants only in the countries in which Youlab is authorized to conduct business, as announced on the Company’s official website or other official Company literature. Youlab products or sales aids may not be shipped into or sold in any foreign country that the Company has not announced is officially open for business. In addition, no Consultant may, in any unauthorized country:

- Conduct sales, enrollment or training meetings.
- Enroll or attempt to enroll potential customers or Consultants.
- Conduct any other activity for the purpose of selling Youlab products, establishing a marketing organization, or promoting the Youlab opportunity.

3.20 - Excess Inventory and Bonus Buying

Consultants must never purchase more than they can reasonably use. Consultants must not influence or attempt to influence any other Consultant or Customer to buy more products than they can reasonably use. In addition, bonus buying is strictly prohibited. Bonus buying includes but is not limited to, purchasing products through a straw man or other artifice, any mechanism or artifice include to assist in qualifying for rank advancement, incentives, prizes, commissions or bonuses that is not driven by bona fide product or service purchases by end user consumers.

Consultants may not purchase more than $1,000 personally per Consultant business center per month, or $1,500 per Household per month. A Household is defined as a spouse, and dependent children living at or doing business at the same address those who dwell under the same roof and compose a family; also: a social unit composed of those living together in the same dwelling.

Name, Billing Address, and Shipping Address must match on your first purchase with Youlab. Additionally, a single form of payment can not be used on more than one account. Consultants are prohibited from using different credit and/or debit cards under the same name and/or business name for other accounts.

3.21 - Adherence to Laws and Ordinances

Consultants shall comply with all federal, state, and local laws and regulations in the conduct of their businesses. Many cities and counties have laws regulating certain home-based businesses. In most cases these ordinances are not applicable to Consultants because of the nature of their business. However, Consultants must obey those laws that do apply to them. If a city or county official tells an Consultant that an ordinance applies to him or her, the Consultant shall be polite and cooperative and immediately send a copy of the ordinance to the Compliance Department of Youlab.

3.22 - One Youlab Business Per Consultant

An Consultant may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one Youlab business. No individual may have, operate or receive compensation from more than one Youlab business. Individuals of the same Household may not enter into or have interest in more than one Youlab Business. A “Household” is defined as a spouse, and / or dependent children living at or doing business at the same address.

In order to maintain the integrity of the Youlab Consultant Rewards Program, husbands and wives or common-law couples (collectively “spouses”) who wish to become Youlab Consultants must be either: A) Jointly sponsored as one Youlab business. Spouses, regardless of whether one or both are signatories to the Consultant Agreement, may not own or operate any other Youlab business, either individual or jointly, nor may they participate directly or indirectly (as a shareholder, partner, trustee, trust beneficiary, or have any other legal or equitable ownership) in the ownership or management of another Youlab business in any form. B) One spouse must sponsor the other spouse and be within the same sponsorship leg.

3.23 - Actions of Household Members or Affiliated Parties

If any member of an Consultant’s immediate household engages in any activity which, if performed by the Consultant, would violate any provision of the Agreement, such activity will be deemed a violation by the Consultant and Youlab may take disciplinary action pursuant to the Statement of Policies against the Consultant. Similarly, if any partner, shareholder, member, or other individual with any ownership or management capacity (collectively “Affiliated Individual”) in a corporation, partnership, LLC, trust or other entity (collectively “Business Entity”) violates the Agreement, such action(s) will be deemed a violation by the Business Entity and each Affiliated Individual, and Youlab may take disciplinary action jointly and severally against the Business Entity and/or each Affiliated individual.

3.24 - Requests for Records

Any request from an Consultant for copies of invoices, applications, downline activity reports, or other records will require a fee of $1.00 per page per copy with a minimum $10.00 charge. This fee covers the expense of mailing and time required to research files and make copies of the records.

3.25 - Sale, Transfer or Assignment of Youlab Business

Although a Youlab business is a privately owned and independently operated business, the sale, transfer or assignment of a Youlab business, and the sale, transfer, or assignment of an interest in a Business Entity that owns or operates a Youlab business, is subject to certain limitations. If an Consultant wishes to sell his or her Youlab business, or interest in a Business Entity that owns or operates a Youlab business, the following criteria must be met:

- The selling Consultant must advise Youlab of the intent to sell, upon receiving the notice to sell, Youlab has the right of first refusal to purchase the business on the same terms as agreed upon with a third-party buyer. Youlab shall have fifteen days from the date of receipt of the written offer from the seller to exercise its right of first refusal.
- The buyer or transferee must become a qualified Youlab Consultant. If the buyer is an active Youlab Consultant, he or she must first terminate his or her Youlab business and wait six calendar months before acquiring any interest in a different Youlab business;

- Before the sale, transfer or assignment can be finalized and approved by Youlab, any debt obligations the selling party has with Youlab must be satisfied.
- The selling party must be in good standing and not in violation of any of the terms of the Agreement in order to be eligible to sell, transfer or assign an Youlab business;

- The buyer may not be an independent distributor, owner or employee of another network marketing business that sells products that compete with those of Youlab.

Prior to selling an independent Youlab business or business entity interest, the selling Consultant must notify Youlab’s Compliance Department in writing and advise of his or her intent to sell his/her Youlab business or business entity interest. The selling Consultant must also receive written approval from the Compliance Department before proceeding with the sale. No changes in line of sponsorship can result from the sale or transfer of a Youlab business.

3.26 - Separation of an Youlab Business

Youlab Consultants sometimes operate their Youlab business as husband-wife partnerships, regular partnerships, LLC’s corporations, trusts, or other business entities. At such time as a marriage may end in divorce or a corporation, LLC, partnership, trust or other business entity may dissolve, arrangements must be made to assure that any separation or division of the business is accomplished so as not to adversely affect the interests and income of other businesses up or down the line of sponsorship.

During the divorce or entity dissolution process, the parties must adopt one of the following methods of operation:
- One of the parties may, with consent of the other(s), operate the Youlab business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners or trustees authorize Youlab to deal directly and solely with the other spouse or non-relinquishing shareholder, partner or trustee.
- The parties may continue to operate the Youlab business jointly on a “business-as-usual” basis, whereupon all compensation paid by Youlab will be paid according to the status quo as it existed prior to the divorce filing or dissolution proceedings. This is the default procedure if the parties do not agree on the format set forth above.

Under no circumstances will the Downline Organization of divorcing spouses or a dissolving business entity be divided. Similarly, under no circumstances will Youlab split commission and bonus payments between divorcing spouses or members of dissolving entities. Youlab will recognize only one Downline Organization and will issue only one commission payment per Youlab business per commission cycle. Commission payments shall always be issued to the same individual or entity. In the event that parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition of commissions and ownership of the business in a timely fashion as determined by the Company, the Consultant Agreement shall be involuntarily cancelled.

If a former spouse has completely relinquished all rights in the original Youlab business pursuant to a divorce, he or she is thereafter free to enroll under any sponsor of his or her choosing without waiting six calendar months. In the case of business entity dissolutions, the former partner, shareholder, member, or other entity affiliate who retains no interest in the business must wait six calendar months from the date of the final dissolution before re-enrolling as an Consultant. In either case, the former spouse or business affiliate shall have no rights to any Consultants in their former organization or to any former retail customers. They must develop the new business in the same manner as would any other new Consultant.

3.27 - Sponsoring Online

When sponsoring a new Consultant through the online enrollment process, the sponsor may assist the new applicant in filling out the enrollment materials. However, the applicant must personally review and agree to the online application and agreement, Youlab’s Policies and Procedures, and the Youlab Consultant Rewards Program. The sponsor may not fill out the online application and agreement on behalf of the applicant and agree to these materials on behalf of the applicant.

3.28 - Succession

Upon the death or incapacitation of an Consultant, his or her business may be passed to his or her heirs. Appropriate legal documentation must be submitted to the Company to ensure the transfer is proper. Accordingly, an Consultant should consult an attorney to assist him or her in the preparation of a will or other testamentary instrument. Whenever a Youlab business is transferred by a will or other testamentary process, the beneficiary acquires the right to collect all bonuses and commissions of the deceased Consultant’s marketing organization provided the following qualifications are met. The successor(s) must:

- Execute an Consultant Agreement;
- Comply with terms and provisions of the Agreement;
- Meet all of the qualifications for the deceased Consultant’s status;
- The devisee must provide Youlab with an “address of record” to which all bonus and commissions payments will be sent;
- If the business is bequeathed to joint devisees, they must form a business entity and acquire a Federal Taxpayer Identification Number. Youlab will issue all bonus and commission payments and one 1099 to the business entity.

3.28.1 - Transfer Upon Death of an Consultant

To effect a testamentary transfer of a Youlab business, the executor of the estate must provide the following to Youlab: - A copy of the death certificate;

- Certified letters testamentary or letter of administration appointing an executor; and
- Written instructions from the authorized executor to Youlab specifying to whom the business and income should be transferred.

3.28.2 - Transfer Upon Incapacitation of an Consultant

To effectuate a transfer of a Youlab business because of incapacity, the successor must provide the following to Youlab: - A copy of the appointment of the trustee;
- Written instructions from the trustee instructing how the proceeds from the business should be paid;
- A completed Consultant Agreement executed by the trustee.

3.29 - Telemarketing Techniques

The Federal Trade Commission and Federal Communications Commission each have laws that restrict telemarketing practices. Both federal agencies (as well as a number of states) have “do not call” regulations as part of their telemarketing laws. Although Youlab does not consider Consultants to be “telemarketers” in the traditional sense of the word, these government regulations broadly define the term “telemarketer” and “telemarketing” so that your inadvertent action of calling someone whose telephone number is listed on the federal “do not call” registry could cause you to violate the law. Moreover, these regulations must not be taken lightly, as they carry significant penalties.

Therefore, Consultants must not engage in telemarketing in the operation of their Youlab business. The term “telemarketing” means the placing of one or more telephone calls to an individual or entity to induce the purchase of a Youlab product or service, or to recruit them for the Youlab opportunity. “Cold calls” made to prospective customers or Consultants that promote either Youlab’s products or services or Youlab opportunity constitute telemarking and are prohibited. However, a telephone call(s) placed to a prospective customer or Consultant (a “prospect”) is permissible under the following situations:

- If the Consultant has an established business relationship with the prospect. An “established business relationship” is a relationship between an Consultant and a prospect based on the prospect’s purchase, rental, or lease of goods or service from the Consultant, or a financial transaction between the prospect and the Consultant, within the eighteen (18) months immediately preceding the date of a telephone call to induce the prospect’s purchase of a product or service.

- The prospect’s personal inquiry or application regarding a product or service offered by the Consultant, within the three (3) months immediately preceding the date of such a call.
- If the Consultant receives written and signed permission from the prospect authorizing the Consultant to call. The authorization must specify the telephone number(s) which the Consultant is authorized to call.

- You may call family members, personal friends, and acquaintances. An “acquaintance” is someone with whom you have at least a recent first-hand relationship within the preceding three months. Bear in mind, however, that if you engage in “card collecting’ with everyone you meet and subsequently calling them, the FTC may consider this a form of telemarketing that is not subject to this exemption. Thus, if you engage in calling “acquaintances,” you must make such calls on an occasional basis only and not make this a routine practice.

- Consultants shall not use automatic telephone dialing systems or software relative to the operation of their Youlab business.
- Consultants shall not place or initiate any outbound telephone call to any person that delivers any prerecorded message (a “robotcall”) regarding or relating to the Youlab products, services or opportunity.

3.30 - Back Office Access

Youlab makes online back offices available to its Consultants. Back Offices provide Consultants access to confidential and proprietary information that may be used solely and exclusively to promote the development of an Consultant’s Youlab business and to increase sales of Youlab products. However, access to a back office is a privilege, and not a right. Youlab reserves the right to deny Consultants’ access to the back office at its sole discretion.

3.31 - Change of Address, Telephone, and E-Mail Addresses

Consultant’s whose contact information changes must amend their contact information through their Consultant Back- Office, or calling Youlab Customer Relations.

3.32 - Continuing Development Obligations

3.32.1 - Ongoing Training

Any Consultant who sponsors another Consultant into Youlab must perform a bona fide assistance and training function to ensure that his or her Downline is properly operating his or her Youlab business. Consultants must have ongoing contact and communication with the Consultants in their Downline Organizations. Examples of such contact and communication may include, but are not limited to: newsletters, written correspondence, personal meetings, telephone contact, voicemail, electronic mail, and the accompaniment of downline Consultants to Youlab meetings, training sessions, and other functions. Upline Consultants are also responsible to motivate and train new Consultants in Youlab product knowledge, effective sales techniques, the Youlab Consultant Rewards Program, and compliance with Company Policies and Procedures. Communication with and the training of downline Consultants must not, however, violate sections 3.1 and/or 3.2 (regarding development of Consultant-produced sales aids and promotional materials).

Consultants should monitor the Consultants in their Downline Organizations to guard against downline Consultants making improper product or business claims, or engaging in any illegal or inappropriate conduct.

3.32.2 - Increased Training Responsibilities

As Consultants progress through the various levels of leadership, they will become more experienced in sales techniques, product knowledge, and understanding of the Youlab program. They will be called upon to share this knowledge with less experienced Consultants in their organization.

3.32.3 - Ongoing Sales Responsibilities

Regardless of their level of achievement, Consultants have an ongoing obligation to continue to personally promote sales through the generation of new customers and through servicing their existing customers.

3.33 - Negative Comments

Youlab wants to provide its Consultants with the best products, Consultant Rewards Program, and service in the industry. Accordingly, we value your constructive criticisms and comments. All such comments should be submitted in writing to Info@youlabglobal.com. Remember, to best serve you, we must hear from you! While Youlab welcomes constructive input, negative comments and remarks made in the field by Consultants about the Company, its products, or Consultant Rewards Program serve no purpose other than to sour the enthusiasm of other Youlab Consultants. For this reason, and to set the proper example for their downline, Consultants must not disparage, demean, or make negative remarks about Youlab, other Youlab Consultants, Youlab’s products, the Marketing and Consultant Rewards Program, or Youlab’s directors, offices, or employees. Complaints and concerns about Youlab and/or its products should be directed to the Customer Relations Department. Disputes or disagreements between any Consultant and Youlab shall be resolved through the dispute resolution process set forth in the Agreement, and the Company and Consultants agree specifically not to demean, discredit, disparage, or criticize one another on the internet or any other public forum.

3.34 - Providing Documentation to Applicants

Consultants must provide the most current version of the Policies and Procedures and the Consultant Rewards Program to individuals whom they are sponsoring to become Consultants before the applicant signs an Consultant Agreement, or ensure that they have online access to these materials.

3.35 - No Territory Restrictions
There are no exclusive territories granted to anyone. 3.36 - Sales Receipts

All Consultants must provide their retail customers with two copies of an official Youlab sales receipt at the time of the sale if not sold from the official Youlab website. These sales receipts set forth the Customer Satisfaction Guarantee as well as any consumer protection rights afforded by federal or state law. Consultants must maintain all retail sales receipts for a period of two years and furnish them to Youlab at the Company’s request. Records documenting the purchases of

Consultants’ Direct Customers will be maintained by Youlab. In addition, Consultants must orally inform the buyer of his or her cancellation rights.

Section 4 – PERSONAL & CONFIDENTIAL INFORMATION

4.1 - Handling Personal Information

As an Consultant, you will receive Personal Information from and about prospective Consultants, customers and other individuals. Keeping their Personal Information secure not only helps to ensure your compliance with the law, but it also helps you to maintain current customers’ and potential customers’ trust, which is an important factor in your success. Personal Information is information that identifies or permits you to contact an individual. It includes a customer’s, potential customers or other individuals name, address, email address, phone number, credit card information, purchase history, and other information associated with these details.

4.2 - Give the Customer Notice

Customers want to know why you are collecting their Personal Information and what you plan to do with it, so tell them what you are collecting, why and with whom you are going to share it. Tell them this before or at the time that you collect their Personal Information, and then be sure that you use and share Personal Information only in the ways you promised.

4.3 – Collect Only What You Need

Collect only the Personal Information that you really need. Review the forms that you use to Collect Personal Information, and revise them to remove fields for information you do not need. Less is more. For example, don’t collect a credit or debit card number unless your customer actually makes a purchase.

4.4 – Give the Customer Control

Give customers a choice about how you communicate with them. For instance, find out if a customer wants to receive promotions and other marketing messages from you and, if so, whether he or she would prefer to receive them by email, phone or another method of communication. Respect the customer’s wishes: if, for example, a customer tells you that he or she doesn’t want to receive emails, then find another way to communicate with him or her.

4.5 – Stay Up-To-Date

Keep customers Personal Information up-to-date. Remind them to let you know if their Personal Information changes. Keeping your contacts current helps you to stay in touch with them.

4.6 – Your Back-Office

Your BACK-OFFICE may have information relating to your downline Consultant’s confidential information. You must not show this information to anyone, nor may you share your BACK-OFFICE access with anyone.

4.7 – Share Only If Necessary

Don’t share a customers’ Personal Information unless you have a business reason to do so (and then share only what is necessary, and no other information, and make sure that the other person agrees to use the Personal Information only in the ways you have agreed).

4.8 – Be Careful

A customer’s information is a valuable asset. Don’t communicate it to the general public or to anyone who doesn’t have a legitimate need for it. Protect it from unauthorized access or disclosure.

4.9 – Dispose Of Personal Information Responsibly

When you no longer need a customer’s Personal Information, stop using it. Dispose of it in a way that makes it unreadable, such as by shredding paper documents.

4.10 – Be Very Careful with Sensitive Personal Information

If sensitive Personal Information such as credit or debit card numbers fall into the wrong hands, customers could become the victim of fraud or identity theft. Consider these steps to help reduce that risk:
- Pay attention to your surroundings and use good judgment whenever you need to discuss or transmit sensitive Personal Information;

- Do not share (or ask a customer to share) sensitive Personal Information, including payment information, in an unsecured way, such as by email;
- Keep sensitive Personal Information in a secure place, such as a locked drawer. Do not leave it lying around where someone could see or take it;

- Use similar safeguards if you keep Personal Information on your computer. For example, use passwords that are not easy to guess, install virus protections, and password protect documents that contain sensitive Personal Information;
- Avoid storing Personal Information on your laptop or another portable device that could be lost or stolen, unless the devise is encrypted;

- Unless you have a legitimate business need, do not keep sensitive Personal Information. Keeping it for longer than you need it creates unnecessary risk.

SECTION 5 – BONUSES AND COMMISSIONS

5.1 – Adjustment to Bonuses and Commissions

Consultants receive bonuses and commissions based on final sales of products and services to end consumers. When a product is returned to Youlab for a refund, is repurchased by the Company, or the buyer institutes a chargeback, either of the following occur at the Company’s discretion: (1) the bonuses and commissions attributable to the returned or repurchased product(s) will be deducted, in the month in which the refund is given, and continuing every pay period thereafter until the commissions is recovered, from the upline Consultants who received bonuses and commissions on the sales of the refunded products; or (2) the upline Consultant who earned commissions based on the sale of the returned products will have the corresponding Business Volume deducted from their Group Business Volume in the next month and all subsequent months until it is completely recovered; or (3) the company adjusts the amount of refund (refund amount less the bonuses and commissions ).



5.2 – Hard Copy Commission Checks

The Company pays commissions via direct payment onto the YoulabGlobalPay Hyperwallet account. From Hyperwallet the funds can be transferred to the provided Hyperwallet debit card or directly into your personal / business bank account.

5.3 – Reports

All information provided by Youlab in downline activity reports, including but not limited to personal and group sales volume (or any part thereof), and downline sponsoring activity is believed to be accurate and reliable. Nevertheless, due to various factors including but not limited to the inherent possibility of human, digital, and mechanical error; the accuracy, completeness, and timeliness of orders; denial of credit card and electronic check payments; returned products; credit card and electronic check charge-backs; the information is not guaranteed by Youlab or any persons creating or transmitting the information.

ALL SALES VOLUME INFORMATION IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESS OR IMPLIED, OR REPRESENTATIONS OF ANY KIND WHATSOEVER. IN PARTICULAR BUT WITHOUT

LIMITATION THERE SHALL BE NO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, OR NON-INFRINGEMENT.

TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, Youlab AND/OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION WILL IN NO EVENT BE LIABLE TO ANY Consultant OR ANYONE ELSE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT ARISE OUT OF THE USE OF OR ACCESS TO PERSONAL AND/OR GROUP SALES VOLUME INFORMATION (INCLUDING BUT NOT LIMITED TO LOST PROFITS, BONUSES, OR COMMISSIONS, LOSS OF OPPORTUNITY, AND DAMAGES THAT MAY RESULT FROM INACCURACY, INCOMPLETENESS, INCONVENIENCE, DELAY, OR LOSS OF THE USE OF THE INFORMATION), EVEN IF Youlab OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. TO THE FULLEST EXTENT PERMITTED BY LAW, Youlab OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE NO RESPONSIBILITY OR LIABILITY TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY OR OTHER THEORY WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO.

Access to and use of Youlab’s online and telephone reporting services and your reliance upon such information is at your own risk. All such information provided to you “as is”. If you are dissatisfied with the accuracy or quality of the information, your sole and exclusive remedy is to discontinue use of and access to Youlab’s online and telephone reporting services and your reliance upon the information.

SECTION 6 – PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASE

6.1 – Order Cancellation and Satisfaction Guarantee

Federal and state law requires that Consultants notify their retail customers that they have three business days (5 business days for Alaska residents. 15 days for residents of North Dakota who are age 65 or older. Saturday is a business day, Sundays and legal holidays are not business days) within which to cancel their purchase and receive a refund upon return of the products in substantially as good condition as when they were delivered. Consultants shall verbally inform their customer of this right, shall provide them with two copies of a retail receipt at the time of the sale, and shall point out this cancellation right stated on the receipt.

In addition, Youlab offers a money back guarantee on unopened and resalable products returned within 30 days from the invoice date, less shipping, handling, and restocking charges. Restocking charges of 15% apply. Products shipped directly to the customer by the Company must be returned to the Company and a refund will be issued to the individual by the Company. Products delivered to the customer by an Consultant must be returned to the selling Consultant, and it shall be the responsibility of the Consultant to issue the refund to his/her customer. This product satisfaction guarantee does not apply to products damaged by abuse or misuse, and shipping costs are not refundable same with restocking fees. Consultants shall disclose the terms of the guarantee to his/her customers at the time of sale and shall also point out this guarantee information on the sales receipt and product literature. If an Consultant returns more than $300.00 for a refund in any 12 consecutive month period, the request will constitute the Consultant’s voluntary cancellation of his/her Consultant Agreement, and the refund will be process as an inventory repurchase and the Consultant’s Youlab business will be cancelled.

Any product (including Jump Start Packages) purchased during any promotion including but not limited to; discounted products, increased PV on products and/or packages, etc., are a final sale product and are not eligible for any return, refund, and/or exchange. All sales are final.

6.2 – Return of Inventory and Sales Aids by Consultants Upon Cancellation

Upon cancellation of an Consultant’s Agreement, the Consultant may return Shopping Sprees, products and Sales Tools that he or she personally purchased from Youlab (purchases from other Consultants or third parties are not subject to refund) that are Resalable (see Definition of “Resalable” below) condition so long as the products and/or Sales Tools were purchased within 30 days prior to the date of cancellation. Upon receipt of a Resalable Shopping Spree and/or Resalable products and sales aids, the Consultant will be reimbursed 85% of the net cost of the original purchase price(s). Neither shipping and handling charges incurred by an Consultant when the Shopping Spree, products or sales aids were purchased, nor returning shipping fees, will be refunded. If the purchases were made through a credit card, the refund will be credited back to the same account. If an Consultant was paid a commission based on a product(s) that he or she purchased, and such product(s) is subsequently returned for a refund, the commission that was paid on that product purchase will be deducted from the amount of the refund. In addition, when a person purchases a Shopping Spree pack, the yearly membership fee is built into the cost of pack.  This fee will not be reimbursed upon cancellation or return of Shopping Spree pack.

Products and Sales Tools shall be deemed “resalable” if each of the following elements is satisfied: 1) they are unopened and unused; 2) packaging and labeling has not been altered or damaged; and 3) it is returned to Youlab within 30 days from the date of purchase. Any merchandise that is clearly identified at the time of sale as nonreturnable, discounted, or as a seasonal / discontinued item, shall not be resalable. Renewal fees are not refundable except as required by applicable state law.

6.2.1 - Pro Series

All Pro Series sales to the Consultant are final and not eligible for refund. Damaged product can be exchanged for a the same product.  Any product sold from the from the Consultant to a customer, Youlab has no responsibility and claims no liability for the sold product, all returns of that product must be dealt with the Consultant.  Pro Series is available only to brick and mortar businesses.  The business must submit an application to Youlab Corporate for approval.  Youlab may deny or revoke the Pro Series sales to any Consultant at any time for any reason..

6.3 – Montana Residents

A Montana resident may cancel his or her Consultant Agreement within 15 days from the date of enrollment, and may return his or her Shopping Spree for a full refund within such time period.

6.4 – Procedures for All Returns

The following procedures apply to all returns for refund, repurchase, or exchange:
- All merchandise must be returned by the Consultant or Customer who purchased it directly.
- All products to be returned must have a Return Authorization Number which is obtained by contacting the Customer Relations Department at Info@youlabglobal.com. or (657) 229-7900. This Return Authorization Number must be written on each carton returned.

The return is accompanied by:
- The original packing slip with the completed and signed Consumer Return Information;
- The unused and unopened product in its original container
- Proper shipping carton(s) and packing materials are to be used in packaging the product(s) being returned for replacement, and the best and most economical means of shipping is suggested. All returns must be shipped to Youlab, shipping must be pre-paid. Youlab does not accept shipping-collect packages. The risk of loss in shipping for returned product shall be on the Consultant. If returned product is not received by the Company’s Return Center, it is the responsibility of the Consultant to trace the shipment.

Defective products - Any defective product (product that does not work due to manufacturing or design defect) must be reported to Youlab Corporate Office within 72 hours of being received.  The product must then be sent back to Youlab Corporate based on the above Return procedures.  Upon receipt, Youlab will test the product and deem if the product is in fact defective.  If Youlab deems the product defective, a replacement product will be sent to Customer or Consultant.  If Youlab deems the product to be not defective, Youlab will send back the product to the Customer or Consultant..

No refund or replacement of product will be made if the conditions of these rules are not met. Section 7 – DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS
7.1 – Disciplinary Measures

Violation of the Agreement, these Policies and Procedures, violation of any common law duty, including but not limited to any applicable duty of loyalty, any illegal, fraudulent, deceptive or unethical business conduct, or any act or omission by an Consultant that, in the sole discretion of the Company may damage its reputation or goodwill (such damaging act or omission need not be related to the Consultant’s Youlab business, may result, at Youlab’s discretion, in one or more of the following corrective measures:

- Issuance of a written warning or admonition;
- Requiring the Consultant to take immediate corrective measures;
- Youlab may withhold from an Consultant all or part of the Consultant’s bonuses and commission during the period that Youlab is investigating any conduct allegedly in violation of the Agreement. If an Consultant’s business is cancelled for disciplinary reasons, the Consultant will not be entitled to recover any commissions withheld during the investigation period;
- Suspension of the individuals Consultant Agreement and independent business of one or more pay periods without pay:
- Involuntary termination of the offender’s Consultant Agreement;
- Suspension and / or termination of the offending Consultants Youlab website and / or website access;
- Any other measure expressly allowed within any provision of the Agreement or which Youlab deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the Consultant’s policy violation or contractual breach;

- In situations deemed appropriate by Youlab, the Company may institute legal proceedings for monetary and/or equitable relief.

7.2 – Grievances and Complaints

When an Consultant has a grievance or complaint with another Consultant regarding any practice or conduct in relationship to their respective Youlab businesses, the complaining Consultant should first report the problem to his or her Sponsor who should review the matter and try to resolve it with the other party’s upline leadership. If the matter involves interpretation or violation of Company policy, it must be reported in writing to the Consultant Services Department at the Company. The Consultant Services Department will review the facts and resolve it.

7.3 – Mediation

For claims seeking $10,000.00 or more that arise from or relate to the Agreement, prior to filing arbitration as set forth below, the parties shall meet in good faith and attempt to resolve such dispute through confidential non-binding mediation. One individual who is mutually acceptable to the parties shall be appointed as a mediator. If the Parties cannot agree on a mediator, the complaining party shall request a mediator be appointed by the American Arbitration Association (“AAA”). The mediation shall occur within 60 days from the date on which the mediator is appointed. The mediator’s fees and costs, as well as the costs of holding and conducting the mediation, shall be divided equally between the parties. Each party shall pay its portion of the anticipated shared fees and costs at least 10 days in advance of the mediation. Each party shall pay its own attorney’s fees, costs, and individual expenses associated with conducting and attending the mediation. Mediation shall be held in Las Vegas, Nevada and shall last no more than two business days.

The prevailing party shall be entitled to all costs and expenses including but not limited to attorney fees, travel, legal and filing fees, etc..

7.4 – Arbitration

Except as otherwise provided in the Agreement, any controversy or claim arising out of or relating to the Agreement, or the breach thereof, shall be settled through confidential arbitration. The Parties waive rights to trial by jury or to any court. This arbitration provision applies to claims that were not successfully resolved through the foregoing mediation process as well as claims for less than $10,000.00 not subject to the mediation requirement. The arbitration shall be filed with, and administered by, the American Arbitration Association in accordance with the AAA’s Commercial Arbitration Rules and Mediation Procedures, which are available on the AAA’s website at www.adr.org. Copies of the AAA’s Commercial Arbitration Rules and Mediation Procedures will also be emailed to Consultants upon request to Youlab’s Customer Relations Department. Notwithstanding the rules of the AAA, unless otherwise stipulated by the Parties, the following shall apply to all Arbitration actions:

- The Federal Rules of Evidence shall apply in all cases;
- The Parties shall be entitled to all discovery rights permitted by the Federal Rules of Civil Procedure;
- The Parties shall be entitled to bring motion under Rules 12 and/or 56 of the Federal Rules of Civil Procedure;
- The Federal Arbitration Act shall govern all matters relating to arbitration. The law of the State of Nevada shall govern all other matters relation to or arising from the Agreement, without regard to principles of conflicts of laws.
- The arbitration hearing shall commence no later than 365 days from the date on which the arbitrator is appointed, and shall last no more than five business days;
- The Parties shall be allotted equal time to present their respective cases;
- The arbitration shall be brought on an individual basis and not as part of a class or consolidated action.

All arbitration proceedings shall be held in Las Vegas, Nevada. There shall be one arbitration selected from the panel that the AAA provides. Each party to the arbitration shall be responsible for its own costs and expenses of arbitration, including legal and filing fees. The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to a judgment in any court to which the Parties have consented to jurisdiction as set forth in the Agreement. This agreement to arbitrate shall survive the cancellation nor termination of this Agreement.

The parties and the arbitrator shall maintain the confidentiality of the arbitration proceedings and shall not disclose to third parties”
- The substance of, or basis for, the controversy, dispute, or claim;
- The substance or content of any settlement offer or settlement discussions or offers associated with the dispute;

- The pleadings, or the content of any pleadings, or exhibits thereto; filed in any arbitration proceedings;
- The content of any testimony or the evidence presented at an arbitration hearing or obtained through discovery in arbitration;
- The terms or amount of any arbitration award;
- The rulings of the arbitrator on the procedural and/or substantive issues involved in the case.

Notwithstanding the foregoing, nothing in the Agreement shall prevent either party from applying to and obtaining from any court to which the Parties have consented to jurisdiction as set forth in the Agreement a temporary restraining order, preliminary or permanent injunction, or other equitable relief to safeguard and protect its intellectual properties rights, trade secrets, and/or confidential information, including but not limited to enforcement of its rights under the non- solicitation provision of the Agreement.

The prevailing party shall be entitled to all costs and expenses including but not limited to attorney fees, travel, legal and filing fees, etc..

7.5 – Governing Law, Jurisdiction and Venue

Jurisdiction and venue of any matter not subject to arbitration shall reside exclusively in Clark County, State of Nevada or the United States District Court for the District of Nevada, residing in Las Vegas, Nevada. The Federal Arbitration Act shall govern all matters relating to arbitration. The law of the State of Nevada shall govern all other matters relating to or arising from the Agreement.

7.6 – Louisiana Residents

Notwithstanding the foregoing, and the arbitration provision in Section 7.5 residents of the State of Louisiana shall be entitled to bring an action against Youlab in their home Youlab and pursuant to Louisiana law.

7.7 – Damage Limitation

In any action arising from or relating to the Agreement, the parties waive all claims for incidental and/or consequential damages, even if the other party has been apprised of the likelihood of such damage. The parties further waive all claims to exemplary and punitive damages. Notwithstanding the foregoing, this Damage Limitation shall not apply to claims alleging the breach of the non-solicitation or confidentiality provision contained in these Policies.

7.8 – Liquidated Damages

In any case which arises from or relates to the wrongful termination of Consultant’s Agreement and/or independent business, the parties agree that damages will be extremely difficult to ascertain. Therefore, the parties stipulate that if the involuntary termination of an Consultant’s Agreement and/or loss of their independent business held to be wrongful under any theory of law, Consultant’s sole remedy shall be liquidated damages calculated as follows:

- For Consultants at the “Paid As” rank Executive through Silver Ambassador liquidated damages shall be in the amount of his/her gross compensation that he/she earned pursuant to Youlab’s Consultant Rewards Program in the twelve (12) months immediately preceding the termination.
- For Consultants at the “Paid As” rank Gold Ambassador through Royal Ambassador liquidated damages shall be in the amount of his/her gross compensation that he/she earned pursuant to Youlab’s Consultant Rewards Program in the eighteen (18) months immediately preceding the termination.

- For Consultants at the “Paid As” rank Crown Ambassador through Global Ambassador liquidated damages shall be in the amount of his/her compensation that he/she earned pursuant to Youlab’s Consultant Rewards Program in the twenty- four (24) months immediately preceding the termination.

Gross compensation shall include commissions and businesses earned by the Consultant pursuant to Youlab’s Consultant Rewards Program as well as retail profits earned by Consultant for the sale of Youlab merchandise. However, retail profits must be substantiated by providing the Company with true and accurate copies of fully and properly completed retail receipts provided by Consultant to Customers at the time of sale.

The Parties agree that the foregoing liquidated damage schedule is fair and reasonable.

An Consultant’s “Paid As” rank is the rank or title at which they actually qualified to earn compensation under the Youlab Consultant Rewards Program during a pay-period to determine an Consultant’s “Paid As” rank is the pay-period during which the Consultant’s nosiness is placed on suspension or terminated, whichever occurs first. The “Paid As” rank differs from the “title Rank,” which is the highest title or rank that a Consultant has ever achieved under the Youlab Consultant Rewards Program.

SECTION 8 – PAYMENT AND SHIPPING
8.1 – Restrictions on Third Party Use of Financial Account Access

Consultants shall not permit other Consultants, prospective Consultants, Customers or prospective Customers to use his or her credit or debit card, or permit debits to their financial accounts, to enroll or to make purchases from the Company.

8.2 – Sales Taxes

Youlab is required to charge sales taxes on all purchases made by Consultants and Customers, and remit the taxes charged to the respective states. Accordingly, Youlab will collect and remit sales taxes on behalf of Consultants, based on the suggested retail price of the products, according to applicable tax rates in the state or province to which the shipment is destined. If an Consultant has submitted, and Youlab has accepted, a current Sales Tax Exemption Certificate and Sales Tax Registration License, sales taxes will not be added to the invoice and the responsibility of collecting and remitting sales taxes to the appropriate authorities shall be on the Consultant. Exemption from the payment sales tax is applicable only to orders that are shipped to a state for which the proper tax exemption papers have been filed and accepted. Applicable sales taxes will be charged on orders that are drop-shipped to another state. Any sales tax exemption accepted by Youlab is not retroactive.

8.3 – Shipping Schedule

Orders are normally shipped within one business day from the date on which they are placed with the Company. If you do not receive the order within 10 days from the date on which it was placed, contact the Company and report the non-receipt of your order. If an order is placed and shipped and a request for the shipping address to be changed, a fee of $12.50 will be assessed to the purchaser. Youlab assumes no responsibility or liability for product once it has been shipped.

SECTION 9 – INACTIVITY AND CANCELLATION

9.1 – Effect of Cancellation

So long as an Consultant remains active and complies with the terms of the Independent Agreement and these Policies and Procedures, Youlab shall pay commissions to such Consultant in accordance with the Consultant Rewards Program. An Consultant’s bonuses and commissions constitute the entire consideration for the Consultant’s efforts in generating sales and all activities related to generating sales (including building a downline organization). Following an Consultant’s non- renewal of his or her Consultant Agreement, cancellation for inactivity, or voluntary or involuntary cancellation of his or her Consultant Agreement (all of these methods are collectively referred to as “Cancellation”), the former Consultant shall have no right, title, claim or interest to the marketing organization which he or she operated, or any commission or bonus from the sales generated by the organization. An Consultant whose business is cancelled will lose all rights as an Consultant. This includes the right to sell Youlab products and services and the right to receive future commissions, bonuses, or other income resulting from the sales and other activities of the Consultant’s former downline sales organization. In the event of cancellation, Consultants agree to waive all rights they may have, including but not limited to property rights, to their former downline organization and to any bonuses, commissions or other remuneration derived from the sales and other activities of his or her former downline organization.

Following an Consultant’s cancellation of his or her Consultant Agreement, the former Consultant shall not hold himself or herself out as a Youlab Consultant and shall not have the right to sell Youlab products or services. An Consultant whose business is cancelled shall receive commissions and bonuses only for the last full pay period he or she was active prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation.)

9.2 – Involuntary Cancellation

An Consultant’s violation of any of the terms of the Agreement, including any amendments that may be made by Youlab in its sole discretion, may result in any of the sanctions listed in Section 7.1, including the involuntary cancellation of his or her Consultant Agreement. Cancellation shall be effective on the date on which written notice is mailed, emailed, faxed, or delivered by express courier, to the Consultant’s last known address, email address, or fax number, or to his/her attorney, or when the Consultant receives actual notice of cancellation, whichever is first.

Youlab reserves the right to terminate all Consultant Agreements upon thirty (30) days written notice in the event that it elects to: (1) cease business operation; (2) dissolve as a corporate entity; or (3) terminate distribution of its products via direct selling.

9.3 – Voluntary Cancellation

A participant in this network marketing plan has a right to cancel at any time, regardless of reason. If Cancellation is in writing, the Cancellation notice must be submitted in to the Company at its principal business address. The written notice must include the Consultant’s signature, printed name, address, and Consultant I.D. Number.

In addition to written cancellation, Consultants who have consented to Electronic Contacting will cancel their Consultant Agreement should they withdraw their consent to contact electronically.

An Consultant may also voluntarily cancel his or her Youlab business by returning $300.00 or more of merchandise in any 12 month rolling period and seeking a refund for such returns.

If an Consultant is also on the AutoDelivery program, the Consultant’s AutoDelivery order shall continue unless the Consultant also specifically requests that his or her AutoDelivery Agreement also be cancelled.

9.4 – Non-renewal

An Consultant may also voluntarily cancel his or her Independent Agreement by failing to annually renew his or her Consultant Agreement.

9.5 – Chargeback Policy

When Youlab receives a chargeback notice, the account in which the service was purchased is immediately blocked, and all associated services in the account are terminated. Clawbacks are applied to any commissions earned by any qualifying affiliates. Youlab always considers chargebacks to be the result of fraud; since fraudulent purchases go hand-in-hand with credit card fraud and immediate termination of all services related to the chargeback.

To undo a chargeback, you must contact your credit card provider and issue a chargeback reversal. Reversing the chargeback is the only way to restore a blocked account. The one and only way to restore a blocked account is to reverse the chargeback. 


9.6 – Definitions

Active Consultant – An Consultant who generates at least 70 PV during the month (28 day period).

Active Rank – The term “active rank” refers to the current rank of an Consultant, as determined by the Youlab Consultant Rewards Program, for any pay period. To be considered “active” relative to a particular rank, an Consultant must meet the criteria set forth in the Youlab Consultant Rewards Program for his or her respective rank. (See the definition of “Rank” below.)

Affiliated Party – A shareholder, member, partner, manager, trustee, or other parties with any ownership interest in, or management responsibilities for, a Business Entity.

Agreement – The contract between the Company and each Consultant includes the Consultant Agreement, the Youlab Policies and Procedures, the Youlab Consultant Rewards Program, and the Business Entity Addendum (where appropriate), all in their current form and as amended by Youlab in its sole discretion. These documents are collectively referred to as the “Agreement.”

Cancel – The termination of an Consultant’s business. Cancellation may be either voluntary, involuntary, through non- renewal or inactivity.

External Website – An Consultants Youlab-approved personal website that is hosted on non-Youlab servers and has no official affiliation with Youlab.

Immediate Household – Spouses, heads-of-household, and dependent family members residing in the same residence.

Official Youlab Material – Literature, audio or video recordings, websites, and other materials developed, printed, published and/or distributed by Youlab to Consultants.

Personal Production – Moving Youlab products or services to an end customer for actual use.

Rank – The “title” that an Consultant holds pursuant to the Youlab Consultant Rewards Program. “Title Rank” refers to the highest rank an Consultant has achieved in the Youlab Consultant Rewards Program at any time. “Paid As” rank refers to the rank at which an Consultant is qualified to earn commissions and bonuses during the current pay period.

Recruitment – For purposes of Youlab’s Conflict of Interest Policy (Section 3.13), the term “Recruitment” means the actual or attempted sponsorship, solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another Youlab Consultant or Customer to enroll or participate in another multilevel marketing, network marketing or direct sales opportunity.

eStore - A website provided by Youlab to Consultants which utilizes website templates developed by Youlab.

Resalable – Products and Sales aids shall be deemed “resalable” if each of the following elements is satisfied: 1) they are unopened and unused; 2) packaging and labeling has not been altered or damaged; 3) they are in a condition such that it is a commercially reasonable practice within the trade to sell the merchandise at full price; 4) expired. Any merchandise that is identified at the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be resalable.

Retail Customer – An individual who purchases Youlab products from an Consultant but who is not a participant in the Youlab Consultant Rewards Program.

Sales Tools – Marketing or promotional materials, sales aids, recruitment aids, business marketing or business buildings services, training material, and/or advertising materials, of any nature that directly or indirectly promote Youlab products and/or the Youlab business.

Social Media – Any type of online media that invites, expedites or permits conversation, comment, rating, and/or user generated content, as opposed to traditional media, which delivers content but does not allow readers/viewers/listeners to participate in the creation or development of content, to rate or the comment or response to content. Examples of Social Media include, but are not limited to, blogs, Facebook, Twitter, LinkedIn, Instagram, Pinterest, Youtube, Etc...

Sponsor – An Consultant who enrolls another Consultant in to the Company. The act of enrolling others and training them to become Consultants is called “sponsoring.”

Upline – This term refers to the Consultant or Consultants above a particular Consultant in a sponsorship line up to the Company. Conversely stated, it is the line of sponsors that links any particular Consultant to the Company.