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.
If the monthly settlement of the bonus results in
an amount of less than € 5.00 net, no payment is
made and the entitlement expires.

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. 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.hu.

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.hu).

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.hu 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.hu 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