Each Rep is responsible for keeping their Rep Information up to date and accurate and must immediately update any changes in their back office. It is particularly important that a Rep provides KOBO with their current email address, since email is one of the primary ways that KOBO and a Rep’s upline will communicate with the Rep. By agreeing to the Policies and Procedures, the Rep consents to the KOBO Privacy Policy and to receiving emails from KOBO as well as from their upline. Each Rep may modify their Rep Information (e.g., update an address, phone number or email address). Rep agrees that KOBO may share with Rep’s upline their name, telephone number, address, email address and select sales performance data for all Reps in their downline. No Social Security Number nor credit card number shall be shared with a Reps upline without separate express permission by Rep to allow such personal information sharing. By providing their email address and telephone number, Rep agrees to disclose their email address and telephone number to KOBO as well as to their upline. Rep further acknowledges that information provided to KOBO by Rep will be shared with and processed by KOBO corporate offices.

Expectation of Privacy

KOBO recognizes and respects the importance its Customers & Reps place on the privacy of their financial and personal information. KOBO will make reasonable efforts to safeguard the privacy of and maintain the confidentiality of its Customers’/Reps’ financial and account information and non-public personal information.

Employee Access to Information

KOBO limits the number of employees who have access to Customer’s/Reps nonpublic personal information.

Restrictions on the Disclosure of Account Information

KOBO will not share non-public personal information or financial information about current or former Customers & Reps with third parties, except as permitted or required by laws and regulations, court orders, or to serve the Customers’/Reps’ interests or to enforce its rights or obligations under these Policies and Procedures, the Reps Agreement, or with express written permission from the accountholder on file.

Security and Security Breaches

All Reps must adopt, implement, and maintain appropriate administrative, technical, and physical safeguards to protect against anticipated threats or hazards to the security of confidential information, including Customer & Rep Data. These safeguards must be appropriate to the sensitivity of the information.

Appropriate safeguards for electronic and paper records may include but are not limited to:

(i)  encrypting data before electronically transmitting it.

(ii)  storing records in a secure location; and

(iii)   password-protecting computer files and securely shredding paper files containing confidential information.

Reps must keep confidential information secure from all persons who do not have legitimate business needs to see or use such information. Reps must ensure they obtain and maintain consent from prospective Customers & Reps and existing Customers & Reps before sharing such data with the KOBO.

Reps must comply with all applicable privacy and data security laws, including any security breach notification laws. Without limitation of the preceding sentence, in the event of an actual or suspected Security Breach affecting KOBO ’s data, the applicable Reps shall first promptly notify the KOBO Compliance Department in writing after becoming aware of such Security Breach, and if instructed by the Compliance Department, notify applicable Customers & Reps. Any such notification to Customers & Reps shall be made in compliance with applicable law and shall specify the following:

(i)  the extent to which Customer/Reps Data was or was suspected to be disclosed or compromised.

(ii)  the circumstances of the Security Breach;

(iii)  the date or period of time on which it occurred;

(iv)  a description of the information affected;

(v)  a description of the steps taken to reduce the risk of harm from the Security Breach;

(vi)  contact information for a person able to answer questions regarding the Security Breach;

(vii)  any other information required by the applicable law; and

(viii)  in the case of a notice to a privacy commissioner or other regulatory body, an assessment of the risk of harm to any affected persons and an estimate of the number of persons affected.

Reps shall promptly comply with all applicable information Security Breach disclosure laws. Reps, at their expense, shall cooperate with KOBO , any applicable privacy commissioner or other regulatory body and the applicable Customers & Reps and use their best efforts to mitigate any potential damage caused by a breach of their obligations under the Reps Agreement or any law applicable to confidential data, including by sending notice to the affected individuals, applicable agencies and consumer reporting agencies, if such notification is required the KOBO in its sole and absolute discretion.

Privacy and Confidentiality

All Reps are required to abide by the KOBO ’s Privacy Policy with regard to Reps and Customer information.

The Data Management Rule

The Data Management Rule (the “Rule”) is intended to protect the LOS for the benefit of all Reps, as well as the KOBO. LOS information is information compiled by the KOBO that discloses or relates to all or part of the specific arrangement of sponsorship within the KOBO business, including, without limitation, Reps lists, sponsorship trees, and all Reps information generated therefrom, in its present and future forms. The KOBO LOS, constitutes a commercially advantageous, unique, and proprietary trade secret (“Proprietary Information”), which it keeps proprietary and confidential and treats as a trade secret. KOBO is the exclusive owner of all Proprietary Information, which is derived, compiled, configured, and maintained through the expenditure of considerable time, effort, and resources by the KOBO and its Reps. Through this Rule, Reps are granted a personal, non-exclusive, non-transferable, and revocable right by the KOBO to use Proprietary Information only as necessary to facilitate their business as contemplated under these Policies. The KOBO reserves the right to deny or revoke this right, upon

reasonable notice to the Reps stating the reason(s) for such denial or revocation, whenever, in the reasonable opinion of the KOBO, such is necessary to protect the confidentiality or value of Proprietary Information.

All Reps shall maintain Proprietary Information in strictest confidence and shall take all reasonable steps and appropriate measures to safeguard Proprietary Information and maintain the confidentiality thereof.

Effective August 7, 2023. Last Revised August 7, 2023.