UKRAINIAN BUSINESS SUPPORT MATERIAL (BSM) POLICY NUTRITION HOME BEAUTY YOUR BUSINESS YOUR BUSINESS BEAUTY HOME NUTRITION YOUR BUSINESS BEAUTY HOME

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1 NUTRITION HOME BEAUTY YOUR BUSINESS YOUR BUSINESS HOME BEAUTY NUTRITION YOUR BUSINESS HOME BEAUTY NUTRITION UKRAINIAN BUSINESS SUPPORT MATERIAL (BSM) POLICY

2 UKRAINIAN BUSINESS SUPPORT MATERIAL (BSM) POLICY This Policy is applied and interpreted in accordance with the contractual undertakings between ABOs/Members Plus and Amway Ukraine. It applies to all BSMs (including meeting and events) promoted or sold in Ukraine. This Policy is applicable in Ukraine as of September 1, This Policy makes an integral part of Amway Rules of Conduct. It is intended to supplement and not replace Rules of Conduct, other official Policies and contractual provisions between ABOs/Members Plus and Amway Ukraine related to this subject matter. Within its sphere of application this Policy supersedes regulations of the Amway Rules of Conduct that might be contradicting. Amway reserves the right to modify, amend or revise any of the terms of this Business Support Material Policy at any time, in accordance with rule 1.3 of the Amway Rules of Conduct. Business Support Materials ( BSMs ) as used in this Policy means all products and services (including but not limited to business aids, books, magazines, flip charts, and other printed material, online literature, internet websites, advertising, audio, video or digital media, rallies, meetings, and educational seminars, and other types of materials and services) that are (a) designed to solicit and/or educate Prospects, Customers, or prospective Customers of Amway products or services, or to support, train, motivate, and/or educate ABOs/Members Plus, or (b) incorporate or use one or more of the Marks or Copyrighted Works of Amway, or (c) are otherwise offered with an explicit or implied sense of affiliation, connection, or association with Amway. Nothing in this Policy shall be construed or interpreted as a license or other permission to incorporate any LOS information into any BSM. While Amway does not require anybody to purchase such BSMs, ABOs/Members Plus may decide that they can play a useful role in building a profitable Amway Business or achieving Member Plus goals. I. GENERAL PROVISIONS 1. Definition of Terms Approved Provider means any supplier authorized by Amway to provide BSMs to ABOs/Members Plus or to use BSMs with Prospects, pursuant to the ACCREDITA- TION PLUSTM Program ( Program ) and Quality Assurance Standards. Accreditation Plus Agreement and its addenda constitute an agreement between the Approved Provider and Amway governing the use, sale, promotion and distribution of BSMs. Quality Assurance Standards means the Quality Assurance Standards for BSMs content, which may be amended from time to time. They are available on Associated ABOs are ABOs authorized by Approved Providers to sell, promote or distribute BSMs. This authorization is based on a contract between the Approved Provider and the respective ABO. 2. Sale and Promotion of Business Support Materials incl. Meetings/Events BSMs must be used, sold, distributed and promoted in accordance with the agreement between Amway and Approved Providers, Amway Rules of Conduct and Policies and the Quality Assurance Standards. All sales and purchases of BSMs (including tickets to meetings/events) must be strictly voluntary. 3. Review and Authorization All BSMs must: (a) Comply with Quality Assurance Standards and any applicable Rules of Conduct relating to their use, promotion and sale; (b) Be submitted to Amway for review prior to use, promotion, distribution or sale; (c) Be authorized by Amway; and (d) If required for the category of BSM, bear the authorization number provided by Amway. Amway s review and authorization will be conditioned upon compliance with the Amway Rules of Conduct, Amway Business Policies and the Quality Assurance Standards. Approved Providers and associated ABOs are responsible for compliance with all applicable laws and regulations related to any BSM activities. 2

3 4. Approved Providers or associated ABOs may sell any BSMs (including tickets to meetings/ events) to the ABOs/Members Plus by: (a) Taking and processing orders. Tickets may not be sold for a higher cost than the price printed on a ticket; (b) Delivering the material/tickets to the ordering ABO/ Member Plus; (c) Providing the purchaser with a receipt, showing (i) the Approved Provider, (ii) a description of the product sold, (iii) quantity purchased, (iv) the price (incl. VAT) paid per BSM and (v) a reasonable delivery fee, f) date of purchase; (d) Clearly communicating refund provision terms prior to the sale; (e) Refunding returned BSMs (including tickets) accordingly, under commercially reasonable terms. (f) Buying back tickets purchased for the purchaser s personal use for a period of 30 days after the event, provided the dissatisfied purchaser personally attended the event. Such refund shall be for that portion of the cost of the event related to admission to the event, exclusive of the cost of travel, meals, or hotel accommodations. (g) Amway s Satisfaction Guarantee and Buy-Back Rules do not apply to materials not sold by Amway. BSM may only be sold subject to the right of the purchaser to return such BMS for a refund in accordance with this Policy. 5. Responsibilities of ABOs ABOs who are authorized to offer and/or sell BSMs by Approved Provider or who may conduct meetings in accordance with this Policy and the Rules of Conduct must; (a) Ensure full adherence of the BSMs offered to the Amway Rules of Conduct, this BSM Policy and the Quality Assurance Standards; (b) Ensure that BSMs are not sold or offered for sale in conjunction with the registration with Amway; (c) Provide purchasers of such BSMs with any disclosures or other information required by Amway; (d) Clearly inform every ABO purchasing BSMs that purchasing BSMs is optional; (e) Advise the purchaser about refund policies that apply to such BSMs in accordance with this Policy; (f) Not infringe the copyrights or intellectual property rights of Approved Providers, other ABOs, Amway or third-parties; (g) Not sell BSMs to any Prospect until after that Prospect has registered as an ABO/Member Plus and has received sufficient time and information to determine whether or not the purchase of BSMs will be appropriate and helpful to the ABO/Member Plus; (h) May not compensate or remunerate other ABOs/ Members Plus in connection with such distribution. 6. Cross Group Sale and Promotion of BSMs BSMs may only be promoted within the business group and/or the Line of Sponsorship; cross group promotion of BSMs may only occur with the written consent of an upline Diamond and/or the Approved Provider. In addition Platinum or higher qualified ABOs who wish to purchase BSMs of another Approved Provider have to request approval from Amway. 7. Reasonable Expenditures Each ABO/Member Plus must make decisions to purchase BSMs based on what the ABO/Member Plus perceives as necessary to build his individual Amway business. Nevertheless, the sale and promotion of BSMs to ABOs/Members Plus must always be reasonable. Any ABO who purchases, promotes, distributes, or offers BSM for sale shall use reasonable efforts to determine that the quantity and cost of BSMs are reasonable. (a) Promotion of BSMs incl. meetings/events to New ABOs/Members Plus: BSMs may not be sold or promoted to new ABOs/Members Plus in unreasonable amounts exceeding 600 UAH each of the first three months after joining the Amway business, with a maximum total expenditure of 1800 UAH during the first three months. (b) During the first 90 days after registration with Amway, the ABO/Member Plus may return all BSMs of any form purchased, together with proof of purchase, for a 100% refund of the purchase price paid for such BSMs. II. MEETINGS AND EVENTS 1. All video or similar visual materials (e.g. presentations in Power Point) to be used in the conduct of the meeting/event are subject to the Quality Assurance Standards. No ABO may record an Amway presentation without the prior specific written consent of Amway. 2. Meeting/Event Registration and Authorization In general, only Approved Providers may host and request authorization for meetings/events designed for the purpose of building the Amway Business. ABOs may organize seminars, events, or business meetings consistent with their training obligations as sponsors or Platinums as defined in Section 5 of the Rules of Conduct. Any meeting/event with more than 100 participants or any meeting/event with ticket price higher than 30 UAH need to be authorized by Amway Ukraine. The authorization of any meetings/events is solely at Amway s discretion. Prior to the authorization Amway may specify criteria limiting meeting/event size or may define other reasonable conditions. Amway Representatives may at any time attend any meetings to ensure compliance with this Policy and adherence to the Quality Assurance Standards. 3. Specific Responsibilities related to Meetings/Events ABOs as well as other speakers attending to meetings, events and webinars in Ukraine must do so in a manner 3

4 that complies with the letter and spirit of the applicable laws, regulations, rules, policies and procedures of Amway Ukraine, including the Quality Assurance Standards regardless of whether they are registered ABOs in that market. Children under the age of 18 years are not allowed to attend to any Amway related meeting/event. Meetings/events held for the purpose of building the Ukrainian Amway business may take place only in the territory of Ukraine unless prior written consent has been obtained from Amway. Tickets to unapproved meetings/ events must not be sold to ABOs registered in Ukraine. 4. Responsibilities of ABOs ABOs/Members Plus participating in the promotion, distribution or sale of tickets to meetings or events must ensure that these activities are in accordance with applicable laws and regulations and that all approvals and licenses that are required to conduct such activities are obtained prior to conducting any such activities. A receipt showing proof of purchase must be presented prior to be entitled to receive any refund. (b) Subscription programs (as e. g. Continuous Education Programs, CEPs) ABOs/Members Plus may choose to discontinue the participation in any of these programs at will by sending a written note to the Approved Provider and being entitled to a refund for unused, whole months of any prepaid subscription. (c) Downloadable Media replacement of the download of equal value is to be provided to dissatisfied purchasers within 30 days of purchase of the subject downloadable media. IV. FAILURE TO COMPLY Amway will investigate circumstances or complaints suggesting that a violation of this Policy has potentially occurred according to sections 11 and 12 of the Amway Rules of Conduct. 5. Specific Requirements for Webinars and other Online Meetings In case meetings and/or presentation are held by using internet technologies, like webinars, below specific requirements need to be considered: (a) All content used is to be in compliance with the Amway Rules of Conduct, the Amway Policies and the Quality Assurance Standards; (b) All material and content shown is to be applicable for the markets of the participants; (c) Participants may only be charged a reasonable fee for attending. III. PROMOTION, SALE AND DISTRIBUTION OF OTHER BSMS 1. Other BSMs are all BSM as defined in this Policy with the exception of meetings/events and tickets. They shall have a legend prominently displayed on it that (a) the content is reviewed and authorized followed by the unique authorization number provided by Amway; (b) the use and the purchase of any such material is voluntary, (c) that the use of any such material will not guarantee success and (d) that the materials has been published independently of Amway. BSMs that have been authorized for use in one country by Amway are not approved for use in another country unless specifically outlined in the authorization. 2. Specific Refund Requirements for Other BSMs Terms and conditions of refund policies for other BSMs must comply with all applicable laws and must contain the following minimum requirements: (a) Memorialized BSMs (CDs, DVDs, printed materials) must include a full refund for a period of 30 days after the ordering ABO/Member Plus received the material. Additional refund is to be provided for at least an additional 30 days on commercial reasonable terms. 4

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6 ВАШ БИЗНЕС КРАСОТА ДОМ ЗДОРОВЬЕ ООО «Эмвей Украина» является членом Украинской ассоциации прямых продаж с 2004 года. По вопросам защиты прав покупателей и дистрибьюторов компаний прямых продаж обращайтесь к Администратору кодекса УАПП по тел.: (044) Адрес: Главпочтамт, а / я 482, Киев, 01001, Украина Е-mail: code@udsa.org.ua ООО «Эмвей Украина» ВАШ БИЗНЕС ул. Казимира Малевича, 87, Киев, 03150, Украина КРАСОТА Телефон: (380-44) , факс: (380-44) ДОМ infoua@amway.com, ЗДОРОВЬЕ 06/2014-ur