DISTRIBUTOR RULES OF PM-INTERNATIONAL Headquarters Asia Pacific Pte Ltd

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).
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. If the Distributor
is accepted, 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 terminated at any time
by either Party upon providing 30 days written
notice in advance. Either Party shall be entitled
to terminate the Distributorship with immediate
effect in case the other Party (i) commits a breach
of its obligations under this Distributorship
without rectifying such breach within 10 days
after becoming aware thereof; or (ii) goes into
liquidation, comes under receivership, is wound up
or undergoes similar proceedings. 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, this shall
constitute 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.
3. ENTITLEMENT TO BONUS
3.1. The Distributor will receive a bonus for FitLine
products bought either by end consumers referred
by Distributor to PM through the Customer Direct
Program, or by a distributor who is introduced,
trained and supported by Distributor as a sponsor.
The bonus will also be paid for further orders by
these end consumers and distributors as well as
any other orders of FitLine products by distributors
directly or indirectly sponsored by the Distributor.
The right to a bonus arises once the products have
been paid for. Requirements for, and the amounts
of the bonus are determined in 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.
GST shall be payable on the bonus if applicable
and 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.
Otherwise GST is considered included in the
bonus. The bonus statement will be available in
the Partner Area, however, if a Distributor wishes
to receive it by mail, an administrative fee of 10
SGD 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 described
in the PM Marketing Plan 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 which are competing with
FitLine products within the APAC region.
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 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. If the consumer chooses credit or
a refund, the credit or refund must be made to
the consumer within 60 days from the consumer
requests for cancel date of return of the products.
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
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. The Distributor may not make any changes
to FitLine products or their packaging and may
not allow third parties to make such changes. It
is allowed to stick an address label with address
information of the Distributor on a label as long as
no advertising statement or product information is
hidden by it.

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. 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 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 an amicable solution cannot be reached
in this way, you should take part in an out-of-court
arbitration procedure according to local law.