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In addition to clarifying who is held responsible for unauthorized online sales, what else is being done to discourage this activity? Part 2

Last week we discussed the fact that both the seller and those who provide product to that seller are violating the LifeVantage Policies and Procedures. This week we will highlight the “teeth” that have been added to penalties imposed for such violations. This detail is presented in

Sections 8.5.13(a) – Liquidated Damages and 8.5.13(b) Injunctive Relief

8.5.13(a) – Liquidated Damages.

In the event of any breach of the provisions set forth in paragraphs 8.5.12 or 8.5.13, the Independent Distributor will be liable for liquidated damages in the amount of ten (10) times the full retail price of any goods sold in violation of this Agreement. In so agreeing, the parties acknowledge and understand that the harm flowing to LifeVantage from any such breach may be irreparable or extremely difficult to quantify.

8.5.13(b) – Injunctive Relief.

In addition to (and not in lieu of) any other remedy available to it under this Agreement, LifeVantage shall have the right to seek immediate, ex parte injunctive relief against the Independent Distributor to remedy any violation of paragraphs 8.5.12 and 8.5.13 of this Agreement.

In addition to these legal remedies, the party who bears the attorney’s fees and other costs and expenses incurred during litigation seeking resolution to these matters has been modified as per

Section 14.3.3.

14.3.3 – Each party shall bear its own attorneys’ fees and any other costs and expenses incurred in the resolution of any dispute without regard to the outcome. Notwithstanding the foregoing, or anything else to the contrary in this Agreement, in any legal action commenced to address the unauthorized diversion of products (as set forth in Paragraphs 8.15.12 and 8.15.13 of this Agreement), the prevailing party shall be entitled to recover the attorneys’ fees, costs and expenses it incurs in investigating and prosecuting or defending such action.

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