Common use of Change of Sponsor Clause in Contracts

Change of Sponsor. To protect the integrity of all Marketing Organizations and safeguard the hard work of all Distributors, LivElite International strongly discourages changes in sponsorship. Maintaining the integrity of sponsorship is critical for the success of every Distributor and Marketing Organization. Accordingly, the transfer of a LivElite International business from one sponsor to another is rarely permitted. Requests for change of sponsorship must be submitted in writing to the Distributor Services Department, and must include the reason for the transfer. Transfers will only be considered in the following two circumstances: a) In cases in which the new Distributor is sponsored by someone other than the individual he or she was led to believe would be his or her Sponsor, a Distributor may request that he or she be transferred to another organization with his or her entire Marketing Organization intact. All requests for transfer alleging fraudulent enrollment practices shall be evaluated on a case by case basis. Requests for transfer under this policy will be evaluated on a case-by- case basis and must be made within 60 days from the date of enrollment. The Distributor requesting the change has the burden of proving that he or she was placed beneath the wrong sponsor. b) The Distributor seeking to transfer submits a properly completed and fully executed Sponsorship Transfer Form which includes the written approval of his or her immediate four (4) upline Distributors. Photocopied or facsimile signatures are not acceptable. All Distributor signatures must be notarized. The Distributor who requests the transfer must submit a fee of $50.00 for administrative charges and data processing. If the transferring Distributor also wants to move any of the Distributors in his or her Marketing Organization, each downline Distributor must also obtain a properly completed Sponsorship Transfer Form and return it to LivElite International with the $50.00 change fee (i.e., the transferring Distributor and each Distributor in his or her Marketing Organization multiplied by $50.00 is the cost to move a LivElite International business.) Downline Distributors will not be moved with the transferring Distributor unless all of the requirements of this paragraph are met. Transferring Distributors must allow thirty (30) days after the receipt of the Sponsorship Transfer Forms by LivElite International for processing and verifying change requests. In cases wherein the appropriate sponsorship change procedures have not been followed, and a Marketing Organization has been developed in the second business developed by a Distributor, LivElite International reserves the sole and exclusive right to determine the final disposition of the Marketing 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, DISTRIBUTORS WAIVE ANY AND ALL CLAIMS AGAINST A Distributor may legitimately change organizations by voluntarily cancelling his or her LivElite International business and remaining inactive (i.e., no purchases of LivElite International products for resale, no sales of LivElite International products, no sponsoring, no attendance at any LivElite International functions, participation in any other form of Distributor activity, or operation of any other LivElite International business) for six (6) full calendar months. Following the six month period of inactivity, the former Distributor may reapply under a new sponsor. LivElite International will consider waiving the six month waiting period under exceptional circumstances. Such requests for waiver must be submitted to LivElite International in writing.

Change of Sponsor. To protect the integrity of all Marketing Organizations and safeguard the hard work of all Distributors, LivElite International Syntek Global strongly discourages changes in sponsorship. Maintaining the integrity of sponsorship is critical for the success of every Distributor and Marketing Organization. Accordingly, the transfer of a LivElite International Syntek Global business from one sponsor to another is rarely permitted. Requests for change of sponsorship must be submitted in writing to the Distributor Services Department, and must include the reason for the transfer. Transfers will only be considered in the following two circumstances: a) In cases in which the new Distributor is sponsored by someone other than the individual he or she was led to believe would be his or her Sponsor, a Distributor may request that he or she be transferred to another organization with his or her entire Marketing Organization intact. All requests for transfer alleging fraudulent enrollment practices shall be evaluated on a case by case basis. Requests for transfer under this policy will be evaluated on a case-by- by-case basis and must be made within 60 days from the date of enrollment. The Distributor requesting the change has the burden of proving that he or she was placed beneath the wrong sponsor. b) The Distributor seeking to transfer submits a properly completed and fully executed Sponsorship Transfer Form which includes the written approval of his or her immediate four (4) upline Distributors. Photocopied or facsimile signatures are not acceptable. All Distributor signatures must be notarized. The Distributor who requests the transfer must submit a fee of $50.00 for administrative charges and data processing. If the transferring Distributor also wants to move any of the Distributors in his or her Marketing Organization, each downline Distributor must also obtain a properly completed Sponsorship Transfer Form and return it to LivElite International Syntek Global with the $50.00 change fee (i.e., the transferring Distributor and each Distributor in his or her Marketing Organization multiplied by $50.00 is the cost to move a LivElite International Syntek Global business.) Downline Distributors will not be moved with the transferring Distributor unless all of the requirements of this paragraph are met. Transferring Distributors must allow thirty (30) days after the receipt of the Sponsorship Transfer Forms by LivElite International Syntek Global for processing and verifying change requests. In cases wherein the appropriate sponsorship change procedures have not been followed, and a Marketing Organization has been developed in the second business developed by a Distributor, LivElite International Syntek Global reserves the sole and exclusive right to determine the final disposition of the Marketing 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, DISTRIBUTORS WAIVE ANY AND ALL CLAIMS AGAINST SYNTEK GLOBAL THAT RELATE TO OR ARISE FROM SYNTEK GLOBAL’S DECISION REGARDING THE DISPOSITION OF ANY MARKETING ORGANIZATION THAT DEVELOPS BELOW AN ORGANIZATION THAT HAS IMPROPERLY CHANGED LINES OF SPONSORSHIP. A Distributor may legitimately change organizations by voluntarily cancelling his or her LivElite International Syntek Global business and remaining inactive (i.e., no purchases of LivElite International Syntek Global products for resale, no sales of LivElite International Syntek Global products, no sponsoring, no attendance at any LivElite International Syntek Global functions, participation in any other form of Distributor activity, or operation of any other LivElite International Syntek Global business) for six (6) full calendar months. Following the six month period of inactivity, the former Distributor may reapply under a new sponsor. LivElite International Syntek Global will consider waiving the six month waiting period under exceptional circumstances. Such requests for waiver must be submitted to LivElite International Syntek Global in writing.

Change of Sponsor. To protect the integrity of all Marketing Organizations marketing organizations and safeguard the hard work of all DistributorsCoaches, LivElite International Beachbody strongly discourages changes in sponsorship. Maintaining the integrity of sponsorship is critical for the success of every Distributor Coach and Marketing Organizationmarketing organization. Accordingly, the transfer of a LivElite International Beachbody business from one sponsor to another is rarely permitted. COACH POLICIES and PROCEDURES/COACH COMPENSATION PLAN Requests for change of sponsorship must be submitted in writing to the Distributor Services Coach Relations Department, and must include the reason for the transfer. Transfers will only be considered in the following two three (3) circumstances: (a) In cases in which the new Distributor is sponsored by someone other than the individual he involving fraudulent inducement or she was led to believe would be his or her Sponsorunethical sponsoring, a Distributor Coach may request that he or she be transferred to another organization with his or her entire Marketing Organization marketing organization intact. All requests for transfer alleging fraudulent enrollment practices shall be evaluated on a case by case basis. Requests for transfer under this policy will be evaluated on a case-by- by-case basis and in Beachbody’s sole discretion. Such request must be made within 60 days from the date of enrollment. The Distributor requesting on which the change has the burden of proving that he or she Coach was placed beneath the wrong sponsorenrolled. (b) The Distributor seeking Beachbody reserves the right, in its sole discretion, to move a Coach from one organization or personal sponsor to another if it deems it necessary to maintain the intent of the Coaches involved and/or the integrity of the genealogy, including, without limitation, depending on hardship that may be incurred by the downline Coach. Coaches should be aware, however, that Beachbody will rarely authorize an organization or personal sponsor change request. Depending upon the conditions of such a transfer submits a properly completed and fully executed Sponsorship Transfer Form which includes request, Beachbody may require that the written approval of his or her immediate four (4) upline Distributors. Photocopied or facsimile signatures are not acceptable. All Distributor signatures must be notarized. The Distributor Coach who requests the transfer must submit a fee of $50.00 for administrative charges and data processing. If the transferring Distributor Coach also wants to move any of the Distributors Coaches in his or her Marketing Organizationmarketing organization, each downline Distributor Coach must also obtain a properly completed Sponsorship Transfer Form and return it to LivElite International with Beachbody with, if deemed necessary by Beachbody, the $50.00 change fee (i.e., the transferring Distributor Coach and each Distributor Coach in his or her Marketing Organization marketing organization multiplied by $50.00 is the cost to move a LivElite International Beachbody business). (c) Downline Distributors A Coach may change sponsors within the first three business days after submitting his or her Coach Application and Agreement. To effectuate a sponsor change within such time, the Coach must complete an Independent Coach Cancellation Form and submit it together with a new Coach Application and Agreement which lists the new sponsor. The documentation must be received by Beachbody no later than 5:00 P.M. EST on the third business day following the Company’s receipt of his or her original Coach Application and Agreement. If a Coach changes sponsors pursuant to this policy, the six- month waiting period under Section 3.5.4 shall not apply. There will be no fee associated with the switch, but if the Coach has a downline in his or her original business, the downline Coaches will remain in their original positions and will not be moved with change lines of sponsorship unless they too follow the transferring Distributor unless all of the requirements of procedures set forth in this paragraph are met. Transferring Distributors must allow thirty (30) days after the receipt of the Sponsorship Transfer Forms by LivElite International for processing and verifying change requestssection. In cases wherein the appropriate sponsorship change procedures have not been followed, and or if Beachbody exercises its discretion to allow a Marketing Organization has been developed in the second business developed by a DistributorCoach to change organizations, LivElite International Beachbody reserves the sole and exclusive right to determine the final disposition of the Marketing Organizationdownline organization. Resolving conflicts over the proper placement of a downline that has developed under an organization that has improperly switched sponsors sponsors, or determining the proper placement of an individual or organization due to hardship, is often extremely difficult. Therefore, DISTRIBUTORS ANY AND ALL COACHES WAIVE ANY AND ALL CLAIMS AGAINST BEACHBODY THAT RELATE TO OR ARISE FROM BEACHBODY’S DECISION REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION, INCLUDING THAT: (1) DEVELOPS BELOW AN ORGANIZATION THAT HAS IMPROPERLY CHANGED LINES OF SPONSORSHIP; (2) IS TRANSFERRED BASED ON BEACHBODY’S DETERMINATION THAT A Distributor may legitimately change organizations by voluntarily cancelling his or her LivElite International business and remaining inactive HARDSHIP-BASED TRANSFER WAS APPROPRIATE; OR (i.e., no purchases of LivElite International products for resale, no sales of LivElite International products, no sponsoring, no attendance at any LivElite International functions, participation in any other form of Distributor activity, or operation of any other LivElite International business3) for six (6) full calendar months. Following the six month period of inactivity, the former Distributor may reapply under a new sponsor. LivElite International will consider waiving the six month waiting period under exceptional circumstances. Such requests for waiver must be submitted to LivElite International in writingWAS TRANSFERRED BY BEACHBODY AS NECESSARY FOR ANY TECHNICAL CORRECTIONS OR BUSINESS ADJUSTMENTS.