OUR COMPENSATION PLAN UPDATED: February 1st 2015

Welcome to Eqology «Our business is to change lives» Relationship marketing In today’s market, the best way to reach out to the customer is either face to face or through different social media channels. That is what relationship marketing is all about! We enjoy working with people we like and trust. Rather than spending money on expensive campaigns on TV, in newspapers and on the radio, Eqology rewards our Business Partners who talk with their friends and acquaintances about our products. This is a win-win situation for all parties. We are proud to be able to compensate you in a lucrative way. Our compensation plan is based on some simple steps that will allow you to make money on your own and others’ efforts in the future.

Easy to get started: Just 3 simple steps When you have bought your EQ Business Kit it is important to get started quickly:

1

Your first customers YOU

CUSTOMER

2

CUSTOMER

CUSTOMER

Your first EQ Team YOU

r ve no Tur

Tur no ve r

YOU

BUSINESS PARTNER

Support

3

2

Customers

Turnover

Business Partners

BUSINESS PARTNER

BUSINESS PARTNER

Help your Business Partners with steps 1 and 2

Eqology’s start-up alternatives Option 1 EUR 599 EQ Arctic Professional Business Kit

Option 2 EUR 599 EQ Professional Business Kit

Option 3 EUR 349 EQ Arctic Business Kit

Option 4 EUR 349 EQ Business Kit

EUR 49

EUR 199

EUR 249

EQ Registration Kit

EQ Starter Kit

EQ Test Kit*

1 Pure Artic Oil, 3 EQ Magazine, 3 First Look, 3 Customer Presentation, 1 note book, 1 Go Pro – Eric Worre, 1 Business Partner contract, 1 welcome folder

2 Pure Artic Oil, 2 EQ Omega-6/omega-3 Ratio Test, 3 EQ Magazine, 3 First Look, 3 Customer Presentation, 1 note book, 1 Go Pro – Eric Worre, 1 Business Partner contract, 1 welcome folder

4 EQ Omega-6/Omega-3 Ratio Test *Additional kit, does not qualify for the rank EQ Business Partner.

3

Your first goals

Start by earning 10 % Coaching Commission and become eligible for Leadership Bonuses. FSQ BONUS* All new FSQ get EUR 117,5 extra. Paid in the Weekly Bonus Period. *Campaign valid through March 31st 2016.

Fast Start Qualified  eet the following requirements during your first M 30 days to become Fast Start Qualified:

counted towards your FSQ qualification. If you register your first EQ Business Partner after your first 30 days, this purchase will not be counted towards your FSQ.

1. Have an active auto order. The first month your EQ Business Kit counts as your active auto order.

YOU 400 PQV

2. Generate 400 Personal Qualifying Volume (PQV). PQV can be generated by personal product purchases and customer sales. 3. Personally sponsor at least three new active Business Partners with 300 PQV or more, and place them in three separate legs. 4.

Generate a total of 1.600 Qualifying Volume (QV) from the combination of your PQV and your personally sponsored Business Partners’ PQV. Max 800 QV can be generated from your PQV and max 800 QV can be generated from each personally sponsored EQ Business Partner’s PQV.

The FSQ program starts when you have registered your first Business Partner, or got one placed in your down line. If you register a BP within 30 days of buying your Business Kit, the PQV generated from this purchase will be

definitions 4

QV = BV =

Qualifying Volume This determines your rank. Bonus Volume This determines your commission.

1.600 QV

BUSINESS PARTNER

BUSINESS PARTNER

BUSINESS PARTNER

EQ BUSINESS KITS

PRICE/QV

EQ Professional Business Kit

599 - 1.200 QV*

EQ Arctic PBK

599 - 1.200 QV*

EQ Arctic Business Kit

349 - 600 QV*

EQ Business Kit

349 - 600 QV*

EQ Test Kit

249 - 300 QV*

EQ Starter Kit

199 - 300 QV*

EQ Registration Kit

49 - 50 QV*

*Campaign valid through March 31th 2016: 50% extra QV

Active Business Partner Qualify for an income through Eqology’s compensation plan by staying "active" each calendar month. You stay active by maintaining minimum 300 PQV + PP > 0 for ranks 2-5 and 600 PQV + PP > 0 for ranks 6-12

Get your product FOR FREE!

Buy EQ Pure Arctic Oil, EQ Multichi Energy, EQ Everyday, EQ Everyday Plus, EQ Anti Age Collagen or EQ Shake, get three customers to do the same, and you will get your product for free* the following month.

YOU

EQ Pure Arctic Oil FOR FREE* NEXT MONTH

*You only pay for shipping and handling to receive your free EQ product. You and your customers can use all order types and all variations of EQ Pure Arctic Oil, EQ Multichi Energy, EQ Everyday, EQ Everyday Plus, EQ Anti Age Collagen or EQ Shake (ordinary product, refill, 2-pack, subscriptions and all flavours) to qualify for 3 For Free. All orders must be paid within the same calendar month. Your free product will give 1 PQV. Learn more at eqology.com.

Get EQ Ratio Tests FOR FREE!

Use our unique EQ Gives Back -system. EQ Gives Back gives you the opportunity to always get more EQ Pure Arctic Oil Test Kits, and not have to worry about running out of them.

YOU

3x EQ Ratio Test FOR FREE*

When you have registered your 3 first customers, and they have paid their first delivery of EQ Pure Arctic Oil 12 mth subscription at EUR 77,40 (first month), you will get 3 EQ Omega-6/Omega-3 Ratio Tests for FREE*. Through EQ Gives Back you can have a steady stream of new customers testing their Omega-6/ Omega-3 Ratio without you having to pay for the tests. *You only pay shipping and handling for your 3 free EQ Omega-6/Omega-3 Ratio Tests.

5

Immediate ways to earn

1. Customer Acquisition Bonus (CAB) For each new auto order of EQ Pure Arctic Oil with EQ Ratio Test, EQ Anti Age Collagen, EQ Multichi Energy or EQ Shake sold to a new customer, you will earn a Customer Acquisition Bonus (CAB). The CAB is paid with the weekly commissions. You can earn higher levels of CAB by advancing in rank. No other commissions are paid for the first customer order. CAB is paid only for EQ Pure Arctic Oil with EQ Ratio Test, EQ Multichi Energy (incl. 2-pack), EQ Shake (incl. 2-pack) or EQ Anti Age Collagen.

CAB by rank

Business Partner

Team Leader

Director

Vice President

12

18

21,6

24

EQ Shake

12

18

21,6

24

EQ Shake 2-pack

18

26,5

31,5

35

EQ Multichi Energy

8

12

14,5

16

EQ Multichi Energy 2-pack

24

23

27,5

30,5

11,5

17,5

20,5

23

EQ Pure Arctic Oil with EQ Ratio Test

EQ Anti Age Collagen

6

For example: If you have the title Director, you earn EUR 21,6 for each new customer you personally sponsor that buys the EQ Pure Arctic Oil with EQ Ratio Test.

2. EQ Arctic Challenge Campaign valid through March 31st 2016

If you, as an EQ Business Partner, get 20, 50, 100 or 250 customers on EQ Pure Arctic Oil, you will get our EQ Arctic Challenge Bonus.

20

50

100

250

PAO CUSTOMERS*

PAO CUSTOMERS*

PAO CUSTOMERS*

PAO CUSTOMERS*

EUR 235

EUR 2.353

EUR 5.882

EUR 11.765

Paid over 4 mths.

Paid over 12 mths.

Paid over 24 mths.

Paid over 24 mths.

The customers at your level of qualification must be active each month for you to receive your EQ Arctic Challenge bonus. The bonus is paid during the Monthly Bonus Period. *

3. Personal Customer Commission (PCC) •

The more customers you get,the more you earn!

•

When your customers’ purchases exceed 100 Bonus Volume (BV) in a calendar month, you earn 10 % – 25 % commission on the total exceeding monthly BV. PCC is paid in the Monthly Bonus Period.

•

Customer auto orders, subsequent to their first order, count towards total BV.

•

PCC is paid on all EQ Products.

How to Generate Bonus Volume (BV) PRODUCT

BV

EQ Pure Arctic Oil

30 BV

EQ Multichi Energy 4 mnd. abo.

30 BV

EQ Anti Age Collagen 3 mnd. abo.

42 BV

EQ Everyday 3 mnd. abo.

33,6 BV

Bonus Volume (BV) Earnings BONUS VOLUME (BV)

EARNING POTENTIAL

101 - 500

10 %

501-1.000

15 %

1.001-2.500

20 %

2.501 +

25 %

For example: If you accumulate 1.500 BV in one month, then 1.500 BV - 100 minimum BV = 1.400 BV, and 1.400 BV x 20 % = 280 BV. • No Customer Commissions are paid on the first 100 BV of customer orders. • 90 % of all volume up to 100 BV is credited to Team Commissions.

BV goes • When the 10 % level is reached, 80 % of your towards BV is credited to the Team Commission. your PCC • When the 15 % level is reached, 70 % of your

EQ Everyday Plus 3 mnd. abo.

60 BV

EQ Shake

36 BV



EQ Shake 2-pack

60 BV

• When the 20 % level is reached, 60 % of your BV is credited to the Team Commission.

BV is credited to the Team Commission.

• When the 25 % level is reached, 50 % of your BV is credited to the Team Commission.

7

4. Mentor Bonus Earn up to EUR 124 each time you sell one of the EQ Business Kits to an EQ Business Partner in your organization. This bonus follows the Personal Sponsor Tree and is paid in the Weekly Bonus Period. 2ND GENERATION MENTOR BONUS: When you have a President or Gold President beneath you, Eqology will pay you a 2nd generation President and Gold President Mentor bonus.

TITLE

Business Partner Director

Vice Gold Platinum Diamond President President President President President

2 nd 2 nd Gold President President

EQ Reg. Kit

2,4

3,6

6,6

9,6

12,6

12,6

12,6

1,2

1,2

EQ Starter Kit

11,8

17,6

32,3

47

61,7

61,7

61,7

5,9

5,9

EQ Test Kit

11,8

17,6

32,3

47

61,7

61,7

61,7

5,9

5,9

EQ Arctic BK

23,5

35,3

64,7

94,1

123,5

123,5

123,5

11,8

11,8

EQ BK

23,5

35,3

64,7

94,1

123,5

123,5

123,5

11,8

11,8

EQ Arctic PBK

47

70,6

129,4

188,2

247

247

247

23,5

23,5

EQ Prof. BK

47

70,6

129,4

188,2

247

247

247

23,5

23,5

Example:

1. If you are a President and you sponsor a new EQ Business Partner with an EQ Arctic Professional Business Kit, you will get EUR 188,2 in Mentor Bonus.

8

2. If you are a Gold President and a Director

in your personal sponsortree recruits an EQ Business Partner with an EQ Arctic Professional Business Kit, you will get EUR 176,4 in Mentor bonus.

3.

If you are a Platinum President and a President in your personal sponsortree recruits an EQ Business Partner with an EQ Arctic Professional Business Kit, you will get EUR 58,8 in Mentor bonus.

5. Director 60 Bonus

6. Coaching Commission

Get additional rewards as you lead your team to success. When you complete the activities below during your first 60 days, you will receive EUR 235 cash bonus).

If you are Fast Start Qualified and/or an active EQ Business Partner or higher you can earn Coaching Commission.

1.

Have an active auto order.

2.

Become Director during the first 60 days.

3.

Have 3 personally sponsored separate legs.

4.

Attain 4000 GQV during a 30-day period within the first 60 days.

Begin earning 5 % Coaching Commissions on personally sponsored Business Partners. If you are Fast Start Qualified, you can earn 10 % Coaching Commissions for life. See details under Leadership Income.

7. Lifestyle Bonus Triple Diamond Ambassador

EUR 1.400

Double Diamond Ambassador

EUR 1.400

Diamond Ambassador

EUR 1.100

Diamond President

EUR 1.100

Platinum President

EUR 1.100

Gold President

EUR 1.100

President

EUR 600

Vice President

EUR 300

«

Eqology pays up to EUR 1.400 each month you stay active as a Vice President or higher.

9

Leadership Income Coaching Commissions Earn up to 10 % Coaching Commission on Team Commissions, Leadership Bonuses, Customer Acquisition Bonuses (CAB), and Mentor Bonuses made by each of your personally sponsored Business Partners. Your Coaching Commission cannot exceed your monthly earnings before Coaching Commission.

=10%

YOU

BP

BP

BP

BP

BP

BP

Earn up to 10% on your

Business Partners’ earnings

Differential Bonuses Depending on your rank, earn a differential bonus each time one of your downline EQ Business Partners enrolls a new customer or sells one of our EQ Business Kits to a new EQ Business Partner. These bonuses follow the Personal Sponsorship Tree and are paid in the Weekly Bonus Period.

CAB Differential Bonuses Example: 2 2,5 4 7,5

Mentor Differential Bonus Example:

Active Vice President

23,5

Active 2nd Gold President

Active Director

58,8

Active 1st Gold President

Active Team Leader

23,5

Active 2nd President

58,8

Active 1st President

58,8

Active 1st Vice President

23,5

Active 1st Director

Active Business Partner

EQ PURE ARCTIC OIL

>

EUR 16

47

Active 1st Business Partner

10 EQ ARCTIC PBK

>

EUR 294

Rank Advancement Bonus for TL,D,VP, P, GP Campaign valid through March 31st 2016

Rank Advancement Bonus

TEAM LEADER

DIRECTOR

VICE PRESIDENT

PRESIDENT

GOLD PRESIDENT

EUR 117,5

EUR 235

EUR 706

EUR 2.353

EUR 4.705

Paid over 2 mths..

Paid over 4 mths.

Paid over 6 mths.

Paid over 6 mths.

Paid over 6 mths.

1 300 GQV with three qualifying legs

4 000 GQV with three qualifying legs

12 000 GQV with three qualifying legs

36 000 GQV with three qualifying legs

90 000 GQV with three qualifying legs

PLATINUM PRESIDENT

DIAMOND PRESIDENT

DIAMOND AMBASSADOR

DOUBLE DIAMOND AMBASSADOR

TRIPLE DIAMOND AMBASSADOR

EUR 7.150

EUR 14.300

EUR 35.700

EUR 53.500

EUR 71.400

Paid over 6 mths.

Paid over 6 mths.

180 000 GQV with three qualifying legs

Paid over 12 mths. Paid over 12 mths. Paid over 12 mths.

One personally sponsored PP leg

Two personally sponsored PP legs

Three personally sponsored PP legs

Four personally sponsored PP legs

You must maintain an active title to qualify for Rank Advancement Bonus payments.

Leadership Bonus Eqology’s Leadership Bonus rewards the leaders who are dedicated to their work by building their own team. From when you qualify for the Gold President position you can earn between 1 - 4 % of your total turnover down to the next Business Partner with the same or higher rank as you. This bonus is paid monthly.

PLATINUM PRESIDENT

DIAMOND PRESIDENT

DIAMOND AMBASSADOR

DOUBLE DIAMOND AMBASSADOR

Leadership Bonus

Leadership Bonus

Leadership Bonus

Leadership Bonus

1 % of Organization

1 % of Organization

1 % of Organization

1 % of Organization

Infinity

11

Residual Income Focus on simply building your business in teams of three who sponsor three and get paid up to ten Team Leader generations deep on your team’s sales!

Team Commissions Team commissions are based on the Bonus Volume generated from product sales made by your team. Your focus as an Business Partner is to create a strong customer base and to build a team of other Business Partners who also create a strong customer base. Team commissions start at the Business Partner position. As your team builds, your Team Commission earnings will increase.

GENERATIONS

•

Commissions are "compressed" to allow you to earn commission on sales originating deeper within your Team Leader or higher legs. Only active Team Leaders or higher count as a generation in the Team Commissions calculation. Business Partners’ Bonus Volumes are therefore added to the next qualified generation.

•

Any Customer or Business Partner volume that is not generated from an Active Team Leader or higher will "compress" and be counted in the volume of the generation.

• This bonus follows the Placement Tree and is paid in the Monthly Bonus Period.

BP

TL

DIR

VP

P

GP

PP

DP

DA

DDA

DDDA

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

2

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

3

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

7

5%

5%

5%

5%

5%

5%

8

2%

2%

2%

2%

2%

2%

2%

2%

2%

2%

2%

2%

2%

2%

2%

1

12

• The higher the rank you achieve, the more ge- nerations you can earn commissions from.

4 5 6

9 10

Rank Overview How much you earn and what commissions and bonuses you qualify for are determined by the level of qualifications you meet during a given bonus period. This is called the "Paid As" Rank.

You begin at the rank of Business Partner. When you have reached a higher rank, you will remain recognized at that rank until you advance to a higher rank. This is called "Highest Achieved" Rank.

RANK

PERSONAL VOLUME REQUIREMENTS

BP

TL

DIR

VP

P

GP

PP

DP

DA

DDA

DDDA

300 PQV + PP>0

300 PQV + PP>0

300 PQV + PP>0

300 PQV + PP>0

300 PQV + PP>0

600 PQV + PP>0

600 PQV + PP>0

600 PQV + PP>0

600 PQV + PP>0

600 PQV + PP>0

600 PQV + PP>0

1.300

4.000

12.000

36.000

90.000

180.000

(60 % RULE)

(60 % RULE)

(60 % RULE)

(60 % RULE)

(60 % RULE)

(60 % RULE)

3

3

3

3

3

3

3

3

3

3

1

2

3

4

GQV

Active separate legs Title claims in separate legs

3

3

3

3

3

3

Active BP

Active BP

Active BP

Active TL

Active Dir.

Active Dir.

Number of Separate ”Paid As” PPs in Personally Sponsored Legs in Placement Tree

60 % rule The 60% rule allows you to use up to 60 % of your total volume from one of your legs in order to qualify for new titles.

TITLE

GQV

60 %

Team Leader

1.300

780

Director

4.000

2.400

Vice President

12.000

7.200

President

36.000

21.600

Gold President

90.000

54.000

180.000

108.000

Platinum President

13

Team Structures

Glossary of Terms

Sponsor Tree When a new EQ Business Partner is sponsored, they go into the Sponsor Tree as a Level 1 for the EQ Business Partner who sponsored them. Business Kit Bonuses, Mentor Bonus, Coaching Commissions and Builder Bonuses are based on the Sponsor Tree.

Active: EQ Business Partners are defined as active as long as they meet the requirements to do so. To remain active, you must maintain a minimum of 300 PQV + PP>0 for ranks 2-5 and 600 PQV + PP>0 for ranks 6-12. The required volume can come from auto, direct and additional orders and/or the volume from orders placed by personally sponsored customers.

YOU

Auto order: A preselected product order that is scheduled to be created, paid, and shipped at a specific time each month. Auto orders allow products to be purchased at a discounted price.

BP

BP

BP

BP

BP

BP

BP

Personally Sponsored Placement Tree When a new EQ Business Partner is sponsored, they are placed in their sponsor’s "Waiting Room" for a period of 60 days. During that time, the sponsor has the option to place the new Business Partner into an open position in an existing leg in their Placement Tree. Allowing the EQ Business Partner to place a new EQ Business Partner in an open position in the Placement Tree provides an opportunity to increase the sales volume in an existing leg and enables the new EQ Business Partner to gain additional support from a sales organization that is already in place. Rank advancement and Team Commissions are based on the Placement Tree.

YOU

TL

TL

TL

TL

TL

TL

GQV leg 2: 2.500 TL

TL

TL

GQV leg 3: 2.500

14 TL

TL

GQV leg 1: 17.500

TL

Personally Sponsored Team Leaders

Compression: Only active Team Leaders or higher count as a generation in the Team Commissions calculation. Business Partners’ Bonus Volume is therefore added to the next qualified generation. Customer: A Customer is associated with an EQ Business Partner. A customer can sign up new customers through our 3 For Free-program, but will not receive commission. Downline: This refers to the Business Partner(s) below a Business Partner in the "Genealogy" tree. Fast Start Qualified: Become Fast Start Qualified within 30 days and be eligible for 10 % Coaching Commission for life. Buy your EQ Business Kit and have an active auto order and minimum 400 PQV. Personally sponsor a minimum of three new Business Partners with an active auto order, and place them in three separate legs. Generate a total of 1.600 GQV from the combination of your PQV and your personally sponsored Business Partners’ PQV. Genealogy Tree: This is the Company’s overall structure that indicates how and where Business Partners are placed. The company uses both a Sponsor Tree and a Placement Tree structure.

TL

TL

Business Partner: Everyone who buys a Buiness Kit and work for Eqology is an EQ Business Partner. Business Partner is also the name of the first attainable title.

Leg: A leg is a portion of an EQ Business Partners organization, starting at one of their first‑level EQ Business Partner and encompassing their entire organization. If an EQ Business Partner has ten first-level EQ Business Partners, they have ten legs in the Sponsor Tree. If a personally sponsored Business Partner is placed below an existing leg in the Placement Tree, that newly

sponsored Business Partner becomes part of the Placement Tree leg but remains a separate leg for the sponsor in the Sponsor Tree. Placement Tree: Personally sponsored EQ Business Partners may be placed in the downline of your placement tree in order to increase the volume in a leg. Rank advancements are based on the total volume generated in each leg of the Placement Tree. Personal Sponsor: A Business Partner who personally sponsors a new EQ Business Partnere into the Eqology business. Sponsor is also the term referring to an EQ Business Partner who personally sponsors a customer. Placement Sponsor: An EQ Business Partner who is directly above another Business Partner in the Placement Tree. The Placement Sponsor may not always be the EQ Business Partner who personally sponsored them. Rank: The level of achievement in the compensation plan that determines how much commission is paid and the specific commission bonuses the EQ Business Partner is eligible to earn. Rank is determined by personal and group sales volume, as well as the personal and group volume of the Business Partners in your group. Sponsor Tree: Your personally sponsored EQ Business Partners will always be on Level 1 of your Sponsor Tree. The EQ Business Partners whom they sponsor will always be on Level 2 of your Sponsor Tree. Team Leader: Should you qualify as EQ Team Leader after the first 30 days, the requirement is 1.300 GQV. Team Leader Generations: All active EQ Business Partners up to and including the next qualified EQ Team Leader or higher in your placement tree downline are a Team Leader Generation. Team Commissions are paid based on Team Leader Generations. Upline: This refers to the EQ Business Partner(s) above a new or existing Business Partner in the Genealogy. Volume: The value assigned to a product that is used to determine an EQ Business Partners rank qualifications in the compensation plan (Qualifying Volume (QV)), or to determine the amount of commissions being paid on a product purchase (Bonus Volume (BV)). QV and BV may not be the same value. Other forms of volume include:

Bonus Volume (BV): Is a value assigned to a product that determines the amount of commission paid when the product is sold by an EQ Business Partner. Group Qualifying Volume (GQV): Is the total qualifying volume of a specific group of Business Partners. Includes Business Partners’ PQV (Max 1.600 PQV from personal purchases counted towards GQV). Personal Qualifying Volume (PQV): Qualifying volume that is generated through an EQ Business Partners’ personal product purchases. Also in cludes volume from product purchases made directly from the Company by an EQ Business Partners’ customer. Qualifying Volume (QV): Is a value assigned to a product to determine the amount of qualifying volume on a product purchase. Waiting Room: When a Business Partner personally sponsors another Business Partner, the new Business Partner goes into the Waiting Room for a period of 60 days. During that time, the sponsoring Business Partner will have an opportunity to move the new Business Partner one time under an existing leg in the Placement Tree. The new Business Partner will remain a separate leg in the Sponsor Tree and personally sponsored by his original sponsor; however, the Business Partner under whom he is placed in the Placement Tree will be his Placement upline. The new Business Partner will become part of the total leg volume in the leg in which he was placed. If the new EQ Business Partner is not moved within the allotted time, he will remain a new leg in the Placement Tree for the sponsoring EQ Business Partner. "60% GQV in a Leg" Rule: Beginning at EQ Team Leader, when determining the Group Qualifying Volume qualification requirement, no more than 60 % of the required volume may come from a single Placement Tree leg. For example: The GQV qualification for an EQ Director is 4.000. No more than 2.400 (60%) of the total GQV can come from any single Placement Tree leg.’ Eqology reserves the right to implement changes to the compensation plan as needed for the benefit of the Business Partners and the Company. Every effort will be made to give 30 days advance notice of changes. There are no guarantees regarding income, and the success or failure of each Business Partner, like in any other business, depends upon each Business Partners’ skills and personal effort. All amounts are in EUR.

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notes

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Kirkeveien 59 B Pb. 23, 1322 Høvik Norge biz.eqology.com