DISTRIBUTOR RULES OF PM-INTERNATIONAL AG (PM), AS OF SEPTEMBER 2024

1. LEGAL POSITION OF THE
DISTRIBUTOR

1.1. A Distributor is a self-employed salesperson,
who intends to earn income through the distribution
of FitLine products.

1.2. A Distributors’ distributary activities include
selling FitLine products in their own name directly
to end consumers, referring end consumers to
PM (Customer Direct Program) and referring new
Distributors to PM as a sponsor.

1.3. Distributors have no operational obligations
and can freely decide when, where, how and how
much they work. Distributors must bear all costs
relating to their business themselves. Each Distributor
is an independent contractor, and as such responsible
for the fulfillment of all legal obligations
resulting from the business (registering a company,
income tax, sales tax, social insurance, competition
law).

1.4. Distributors run their business part-time; anyone
realizing this is no longer the case must notify
PM thereof.

2. BEGINNING AND ENDING A
DISTRIBUTORSHIP

2.1. A Distributorship begins with a completed
application by the Distributor; it becomes a valid
agreement as soon as the application has been
accepted by PM. It is not necessary to order FitLine
Products to become a Distributor. PM will inform
a Distributor of the acceptance of their application
without delay.

2.2. Within 30 days of receiving notice of the
acceptance of the application, a Distributor can
withdraw their application by means of a written
declaration to PM without stating any reasons.
After the withdrawal of the application, all FitLine
products purchased as a Distributor may be returned
and PM will reimburse the full amount paid
for them.

2.3. A Distributorship is concluded for an indefinite
time; it can be ordinarily terminated at any time
according to the legal notice period. The right to
an extraordinary termination for cause remains
unaffected. If a Distributor is in breach of its obligations
under articles 3.3, 4.1, 4.2, 5.2 or 7.4 of the
Distributor Rules, PM generally considers this a
cause for termination.

2.4. The Distributor shall regularly review and update
the data provided in the application, especially
name, address, bank account information, email
and telephone.

2.5. In the case of death of the Distributor, the Distributorship
can be transferred to a spouse, child,
or parent if the transfer is requested in writing with
the agreement of all heirs, the transferee accepts
the PM Distributor Rules in the actual version and
PM agrees in writing. PM’s agreement may only be
refused for an important reason.

3. ENTITLEMENT TO BONUS

3.1. For the referral of end consumers through the
Customer Direct Program as well as for introducing,
training and supporting new distributors referred
as a Sponsor, the Distributor will receive a bonus
which will depend on the FitLine products bought
by the new end consumer or distributor. The
bonus will also be paid for further orders by these
end consumers and distributors as well as any
other orders of FitLine products in the Distributor’s
sponsor line. The right to a bonus arises once the
products have been paid for. Requirements for, and
the amounts of the bonus can be taken from the
PM Marketing Plan in the form valid at the time of
referral; PM may decide to make amendments to
the Marketing Plan which apply to all Distributors.

3.2. PM pays out the bonus on a monthly basis.
Payment is only made with sales tax if a Distributor
has previously informed PM in writing of a right to
declare sales tax and provided their tax number
and the responsible tax office. The statement
will be available in the Partner Area, however, if a
Distributor wishes to receive it by mail or check,
an administrative fee of 10,00 € will be charged.
Payment of the bonus will be made by the 20th of
the following month at the latest.
3.3. Any manipulation of bonus criteria is prohibited.
This includes the sponsoring of Distributors who
do not actually sell FitLine products (straw men), as
well as open or disguised multiple registrations to
the extent prohibited. It is also prohibited to use the
name of the spouse, relatives, corporation, partnership,
trust or any other names of third parties to
circumvent this provision. It is also prohibited to encourage
third parties to sell or purchase products in
order to achieve a better position in the Marketing
Plan or to manipulate the group bonus.

4. SALES ACTIVITY OF A DISTRIBUTOR
ELSEWHERE

4.1. 4.1. A Distributor may not undertake activities
for a competitor of PM without PM’s prior written
agreement. A competitor of PM is any company
which offers goods or services through personal
direct marketing or via a network marketing system
as well as, independent of the means of distribution,
all companies with products partially or fully competing
with FitLine products.

4.2. A Distributor shall keep every permitted distribution
activity for another company completely
separate from the activity for PM and with FitLine
products. It is not permitted to refer to your activity
with PM or your status as a PM Distributor, nor
to offer goods and services of the other company
together with FitLine products, or to cause or
try to cause other Distributors of PM in any way
whatsoever to purchase goods or services from the
other company or to become active for the other
company in addition to or instead of their activity for
PM or to reduce or stop their activity for PM.

5. PURCHASE AND DISTRIBUTION OF
FITLINE PRODUCTS

5.1. The Distributor shall exclusively order and
receive FitLine products directly from PM.

5.2. The Distributor shall only sell FitLine products
to end consumers through personal direct sales.
It is not allowed to sell FitLine products through
retail stores, trading markets, fairs, online auctions,
mass media and other similar sales activities. If the
Distributor wants to sell FitLine products in another
country, the Distributor is responsible for checking
whether the FitLine product can be marketed in that
country and whether it complies with the laws and
regulations of that country, notably any consumer
or import regulations, health regulations and labelling
requirements. PM declines any responsibility in
this respect.

5.3. The Distributor has to take back FitLine
products sold to consumers within 30 days after
delivery in case of dissatisfaction. The consumer
does not have to provide any special reasons,
not being satisfied with the products is sufficient
(PM satisfaction guarantee). The consumer may
choose between exchange, credit or a refund of the
purchase price paid once the products have been
returned.

5.4. The Distributor is free to order any quantity
of products from PM. There is no obligation to
purchase any FitLine products, nor a minimum
purchase requirement. The Distributor can return
FitLine products to PM in accordance with PM’s
return policy, which can be found in the Partner
Area after login on www.pm-international.com.

5.5. All orders made by the Distributor are processed
according to the PM prices shown in the PM
Online Shop at the time of order. Sales tax, costs
of packaging and shipping are generally added,
as far as they apply. Payment must be secured or
completed before delivery.

6. FURTHER OBLIGATIONS OF THE
DISTRIBUTOR / PENALTY

6.1. The Distributor has to act as an independent
and responsible entrepreneur and avoid any
appearance of acting as an employee of PM, or of
being entitled to make any statements in the name
of PM.

6.2. As far as PM is a member of national and
international associations for direct marketing,
the Distributor must comply with the standards of
conduct specified by these associations for their
members and their representatives.

6.3. Everything the Distributor says about PM and
FitLine products must be in accordance with PM’s
stipulations, especially those in the product catalog,
on the product labels, official websites and in
other product information. Under no circumstances
may the Distributor attribute therapeutic or healing
properties to FitLine products or use health claims
contrary to applicable legal provisions.

6.4. You agree not to make any changes to Fitline
products or their packaging and/or allow third
parties to make such changes. It is allowed to stick
an address label with address information of the
Distributor, as long as such label does not hide any
product information, legal notices, or intellectual
property of PM.

6.5. The Distributor will only use the product
information, sales materials and sales aids published
by PM when advertising for PM and for the
FitLine products and, insofar as advertising and
sales take place over the Internet, will only use the
Internet shop made available to the Distributor by
PM. Distributors are granted limited rights to use
PM‘s trademarks, trade names, logos, marketing
materials and sales aids solely for the purpose of
promoting and selling FitLine products. Any unauthorized
use, modification, or misrepresentation of
PM‘s intellectual property is strictly prohibited. For
more information, please refer to PM’s “Guidelines
of Use for Trademarks, Logos, Brands and Names”
which you can find in the Partner Area after login
(www.pm-international.com).

6.6. A Distributor will incur a contractual penalty to
PM for every violation of obligations under Sections
4.1, 4.2, 5.1, 5.2, 6.3, 6.4 and 6.5 of the Distributor
Rules, the amount of which will be stipulated by
PM in each individual case taking into account the
significance of the violation and the income of the
Distributor. Further claims, especially for injunction,
damages, blocking or suspension will not be affected
by claiming a contractual penalty.
Every Distributor has to comply with binding legal
regulations during any general advertising measures
and in attracting new Distributors. This applies
in particular to the rules on unfair competition and
unlawful trading practices. Any form of ‘spamming’
and the systematic poaching of distribution
partners from other companies is forbidden. Any
information provided on sales and potential earnings
when working as a Distributor of PM has to
be correct and based on facts. Any violation will be
strictly followed up by PM, up to termination of the
distributorship.

6.7. PM will monitor and randomly check the
compliance of its distributors with contractual and
legal obligations, especially in the context of online
advertising measures, including social media marketing
by external service providers.
6.8. PM reserves the right to suspend a Distributors
access to the Partner Area without prior
notice if the Distributor violated contractual rules or
applicable law. The suspension will remain until the
violation has been removed upon corresponding
notification by PM.

7. LINE PROTECTION

7.1. It is a principle of PM to respect and protect the
sponsor line. During the term of the Distributorship
and 12 months thereafter, no persons or companies
already registered in a sponsor line with PM may be
enticed to change to another sponsor line. It is also
prohibited to use the name of the spouse, relatives,
corporation, partnership, trust or any other names
of third parties to circumvent this provision.

7.2. A Distributor who has terminated their business
partnership or withdrew from it according
to article 2.2. can only be re-registered as a
Distributor if they submit a new application and (a)
are sponsored by their former sponsor, or (b) if at
least 12 months have passed since termination. A
Distributor who has been deleted from records due
to inactivity (12 months without personal volume)
can be freely re-registered with a new application,
i.e. not just under the former Sponsor but in any line
under any Sponsor.

7.3. The registration of relatives and spouses is
subject to specific rules that can be found in the
Partner Area under www.pm-international.com in the
“FAQ Registration of Relatives”.

7.4. Line protection also applies to customers
in the Customer Direct Program. Any registered
customer may only register anew and under a new
sponsor if 6 months have passed after their last
order of FitLine products.

8. PARTICIPATION IN MEDIATION
PROCEEDINGS
As a Distributor, you are obliged to resolve any
disagreements arising from a contractual relationship
concluded online in an amicable manner. If the
problem is not resolved to the customer‘s satisfaction,
they should contact the relevant direct sales
association. This association will try to mediate
between you and your customer.
If an amicable solution cannot be reached in
this way, you agree to participate in an outof-
court arbitration procedure at the Federal
Universal Arbitration Board at the Center for
Arbitration e.V., Straßburger Straße 8, 77694 Kehl
(www.verbraucher-schlichter.de).
Furthermore, the procedure is governed by the procedural
and cost regulations of this body (https://
www.verbraucher-schlichter.de/schlichtungsverfahren/
verfahrensordnung/verfahrensregelung).

9. FINAL PROVISIONS

9.1. The contractual relationship between the parties
is governed by the laws of The Federal Republic
of Germany, without regard to any mandatory
provisions of the laws of the country in which the
Distributor resides.

9.2. The court of jurisdiction for any disputes
is Speyer, if a Distributor is neither resident in
the Federal Republic of Germany nor is usually
residing there upon conclusion of this Agreement
or when court proceedings have started; the right
of one contractual party to bring legal proceedings
against the other party in their jurisdiction remains
untouched.

9.3. A contractually agreed-upon requirement for
written form is also met by telefax or e-mail, except
for a notification of termination for cause which has
to be made by registered letter.

9.4. In addition to these Distributor Rules, the
following rules of PM, which can be found in the
Partner Area at www.pm-international.com also
apply and are expressly recognized as part of the
Distributorship agreement by the Distributor:
• Marketing Plan
• Guidelines of Use for the Internet and Social
Media Policy
• Right of Withdrawal
• Guidelines of Use for Trademarks, Logos, Brands
and Names
• Data Privacy Policy
• Code of Business Conduct and Ethics

Date: September 2024