DETA-ELIS EUROPA GMBH

This Corporate Policy is aimed at consolidation and protection of business reputation of DETA-ELIS EUROPA GmbH (hereinafter referred to as the Company) according to moral, ethical, legal norms and common rules of business relations.

Corporate Policy provisions – these are standards of behavior that shall be followed by each partner. These standards are accepted for determination of functions, obligations and rights of partners relatively to each other, as well as relations between partners and the Company.

Corporate Policy is aimed at creation and implementation of ethical and legal professional practices that will contribute to strong increase of sales and construction of partnership network, at that, avoiding irrelevant, unjust or illegal actions from partners’ side.

Goal of Corporate Policy is to create the system of relationship that allows observation of rights of the Company and each partner, at the same time not restricting partner’s freedom in their actions.

1. GENERAL PROVISIONS

1.1. DETA-ELIS EUROPA GmbH is registered according to the existing law of the Federal Republic of Germany (Justus - Liebig - Str. 2, 36093, Künzell, Germany).

The only (100%) establisher of DETA-ELIS EUROPA GmbH is the Limited Liability Company DETA-ELIS HOLDING.

Limited Liability Company DETA-ELIS HOLDING is an exclusive distributor of DETA-ELIS EUROPA GmbH.

This Corporate Policy is effective for all partners of DETA-ELIS EUROPA GmbH.

1.2. The Company realizes its activity through distribution at the market of electronic devices for health improvement and beauty products related to it (hereinafter referred to as the products). Detailed description of the products is provided in documents attached to the Products, as well as on the official web-site of the Company http://partners.deholding.org/.

The Company reserves the right to extend products range and render additional services within products realization, services on training related to technology used in these products, as well as services for successful development of business.

1.3. The Company distributes its products at the market with the help of independent consulting partners (hereinafter referred to as the partners) as per direct sales system known as multi-level marketing (or MLM-industry). Partners of all levels receive their reward for performing retail sales and development of partnership network. Payment system in the Company is based on honesty, decency, providing fair and equal possibilities for all the partners, who wish creating successful and profitable business.

1.4. Partners shall follow the rules and provisions of this Corporate Policy that are an integral part of their collaboration with the Company.

1.5. The Company reserves the right to make any changes in the provisions of Corporate Policy at any time, if considers it necessary, on condition of preliminary notification located on official site of the Company. Partners shall perform all changes made in the provisions of Corporate Policy and take them as an integral part of their collaboration with the Company.

2. DEFINITIONS AND TERMS

PARTNER – individual person or legal entity that is registered in the data base system of multi-level marketing of LLC DETA-ELIS HOLDING, and which has registration code (partner’s login), as well as password to enter personal account on official web-site of the Company.

NETWORK OF PARTNERS – a group of partners, which is created as the result of recommendation of some new partners, i.e. when one of the partners recommends one or several new partners for cooperation with the Company, who in their turn recommend the next ones.

COMPENSATING PLAN – a set of rules, which describes the necessary conditions for reaching certain levels of qualifications by partners, as well as the method of counting the reward that corresponds to these levels of qualification.

PRODUCTS – products, which are distributed at the market under the trade mark of LLC DETA-ELIS HOLDING and have corresponding value in grades for calculating the reward of partners according to the Compensating plan.

REWARD – sum of money paid to the partner based on the level of qualification, which he achieved, according to the Compensating plan.

BACK-OFFICE – online-account located on web-site of LLC DETA-ELIS HOLDING and provided to the partner for a certain fee.

SPONSOR – partner, who recommended a new partner and registered him through his personal back-office to the data base of the Company.

SPONSOR’S LINE – imaginary line, which contains the sponsor position of each partner, sponsor and their partner’s position and etc. I.e. spillover – line, where sponsor is located.

LEADER and VIP LEADER – partner, who obtained high level of qualification according to the conditions of the Compensating plan.

FLASH КIТ – flash storage element that contains important business information.

CORPORATE UNIT – standard unit equal to 0.025 euro, on the basis of which market values of the products of the Company are determined.

STEP – reward charged to the partner for products realization in the structure of his network according to the Compensating plan.

TRADE MARK – an object of intellectual right on verbal, graphical, combined or other signs: DETA-ELIS, DETA-ELIS HOLDING, DEH, Deholding, DETA-ELIS HOLDING, DeVita, System 8 and DEL'OR, right holder of which is LLC DETA-ELIS HOLDING.

CORPORATE POLICY – this list of rules that determines and regulates the relations between the Company and its partners.

3. STATUS OF PARTNER

3.1. A Partner of the Company can become any individual (full-aged) person, individual (private) entrepreneur, as well as legal entities. Legal entity shall appoint its representative in written form, who will take the responsibility at cooperating with the Company, and clearly defines the limits of his authority. The Company reserves the right to reject the registration of a new partner-applicant.

3.2. A Partner-applicant shall fill-in all necessary fields of registration in back-office (or in printed application on cooperation) with authentic passport data and contact information. The Company reserves the right to cancel the status of partners, who provided misleading information.

3.3. Registration of new partner in data base of the Company is free. Then it is necessary to activate the record by partner, which is done through the following 2 (two) steps:

а) purchase of Flash Kit that costs 1500 corporate units (37,5 euro) during 14 (fourteen) calendar days since the date of registration;

b) order of any Company’s product (for personal use or sales) for the sum no less than 10 000 corporate units (250 euro) during 14 (fourteen) calendar days since the date of Flash Kit purchasing.

In case the above steps are not fulfilled, there will be no activation of partner’s status and his registration code will be invalid (becomes inactive).

Moreover, the activation of a new partner can be realized as follows:

а) order of any Company’s product (for personal use or sales) for the sum no less than 10 000 corporate units (250 euro) during 14 (fourteen) calendar days since the date of registration;

b) purchase of Flash Kit that costs 1500 corporate units (37,5 euro) during 8 (eight) weeks since the date of the first order.

This process is aimed, first of all, at those, who first want to get complete information and get additional personal experience of products use, and then activate cooperation with the Company.

In case the above steps are not fulfilled, there will be no activation of partner’s status and his registration code will be invalid (becomes inactive).

3.4. Purchase of Flash Kit is done only once. The Company distributes through Internet network new data, corporate presentations and information that are available for all partners, thus upgrading also the data on Flash Kit.

The cost of upgrading of above information is done on annual basis by purchase price of Flash Kit and is obligatory condition for prolongation of cooperation with the Company.

For those partners, who reached the level of Master, Bronze Master, Silver Master, Golden Master, the Company provides (in soft version) additional training material on development of network business.

3.5. Information on reward that is charged to the partner according to the Compensating plan and possibility of its receiving is provided in back-office only after the purchase of Flash Kit.

Information on reward that is charged to the partner according to the quantity of products sold by him and possibility of its receiving is provided to the partner in back-office right after his registration.

3.6. The partner, who fulfilled all conditions described in item 3.3. of this Corporate Policy, remains active for 1 (one) calendar year since the date of first order made (for personal use or sales) in the Company. Prolongation of cooperation with the Company for the next year is done as follows:

а) order of any Company’s product (for personal use or sales) for the sum no less than 10 000 corporate units (250 euro);

b) payment of cost of data upgrading on Flash Kit (1500 corporate units that are equal to 37.5 euro).

The partner shall perform these actions for a certain period of time, the beginning of which is defined by 11 (eleven) month after expiration of previous order-activation, and end – 13 (thirteen) month after expiration of previous order-activation. All orders made by the partner before that period of time are not accounted for renewal of cooperation with the Company.

In case said requirements are not observed the registration code of the partner becomes inactive. Prolongation of cooperation with the Company is done every year.

3.7. In case of code non-activation or non-renewal the former partner has the right to be restored in the Company (either by recommendation of previous sponsor, or by recommendation of new sponsor) after 6 (six) months since the date of previous registration or non-renewal of partner’s status.

3.8. The Company provides the partner with the possibility to transfer his status and registration code to legal entity, in which he participates, his spouse or persons that are immediate relatives.

The necessary condition for completion of such transfer is:

а) a written notification confirmed by the partner (participant of legal entity), addressed to the Company;

b) approval from the Company’s part.

If the partner transfers his status for the purpose of actions that in future will lead to violation of Corporate Policy, then the status transfer will not be accepted by the Company. Partner’s status transfer is allowable only for once.

3.9. Selling of partner’s status to third parties is prohibited. Partner´s network of the Company is created on the basis of cooperation applications, which are sent to the Company by partners-applicants. Structural base of network and back-office are the property of the Company.

3.10. In case of partner’s death his status can be transferred to other individual person or legal entity according to testament made before (which must be legally in effect) on condition that new participant is not a former partner, who was rejected from the Company due to violation of provisions of this Corporate Policy.

If there is no testament legal heir (first in line to inherit) shall within 3 (three) months since the date of partner’s death supply an application on partner’s status transfer in written together with other documents:

а) heir’s application;

b) certificate of death.

Heir must be legally capable person (full-aged), capable of registration as the partner.

If within the above period of time there is no interest expressed to the status of departed partner transfer, partner’s status will expire and his registration code will become inactive.

After status transfer is complete, possible pending financial questions related to departed partner are laid upon the legal heir. The Company reserves the right to require all necessary documents from legal heirs that confirm their relationship to departed partner.

3.11. In case, when the partner wishes to terminate or cancel his cooperation with the Company, he can perform this action at any time, without prior notification, and require for de-activation of his registration code. In this case the partner will have to send to the Company a notification on termination of his cooperation with personal signature. Since the moment of partner’s registration code deactivation it is considered that his spouse accepts this fact without objections. Termination of cooperation between the partner and the Company comes into effect and has all legal consequences from the date of confirmation and proper registration from the Company’s part. As a result, all benefits that the partner used (payment of reward, bonuses) are terminated.

Former partner has the right to apply to the Company on repeated registration (by recommendation of former or new sponsor) only after 6 (six) months since the moment of termination of their partner’s status. The Company reserves the right to approve or disapprove the application of the former partner.

3.12. The Company reserves the right, at its own discretion, to terminate any cooperation with the partner after reasoned and documentary evidence of partner’s incorrect behavior or behavior that led to violation of Corporate Policy rules from partner’s part. When the Company receives a complaint concerning abusive practice of Corporate Policy that regulates the relations between partners, the Company will conduct an investigation to confirm the obtained information. If violations presented in complaint are documentarily confirmed, the Company will send a written notice to the partner to his official contact address. In this notice the Company will demand from the partner to stop his incorrect behavior and prevent such actions in future.

The Company reserves the right, depending upon the case, to apply punitive damages against the partner, as well as interfere into his activities with the aim to correct and prevent all possible imbalance in functioning of partners network of the Company or in the Company itself caused by incorrect behavior of the partner.

If the partner continues his incorrect behavior despite of notification, the Company has the right immediately to cancel the cooperation with this partner.

Cancel of cooperation from the Company’s part means loss of all benefits and rights of the partner that refer to payment of reward and other bonuses specified by the Company. Registration code of the partner is canceled and cannot be restored.

After termination of cooperation the former partner is not allowed to disclose confidential and commercial information related to strategic development of business and products improvement of the Company to third parties.

The Company has no right to terminate the cooperation with the partner if it has no reasonable evidences that completely confirm the violation of Corporate Policy from the partner’s part.

4. RELATIONS BETWEEN THE PARTNER AND THE COMPANY

4.1. Relations between the partner and the Company are determined as partnership of equal parties. The partner is an independent professional, but not a representative, commercial agent or employee of the Company. As such, he (independent partner) bears full responsibility on all financial obligations arising from his activity, including payment of all taxes, insurance fees and all financial bills that he has to pay for legal functioning and development of his commercial activity. The partner bears the responsibility for all expenses and charges that occur during his commercial activity.

Each partner has the right to develop his activity freely, at his own discretion, and spend as much time on his activity as he considers necessary. In any case all actions of the partner shall comply with the rules of Corporate Policy and existing law of that country, where he performs his activities.

At the same time of cooperation with the Company the partner has the right to perform any kind of activity by his choice, on condition that it will not violate item 4.3. of this Corporate Policy and this collaboration will not be related to the companies that use multi-level marketing (MLM) system as the way to promote their products.

4.2. In case of confirmation and registration of new partner to data base, the Company agrees to sell its products to the partner and pays the partner reward according to terms of the Compensating plan. The partner, in return, confirms and accepts the fact that the system, by which the Company promotes its products – these are direct sales, is known as the system of multi-level marketing.

Products selling in retail shops, as well as distribution of Company’s products in distribution centers at market price is prohibited.

Products realization with the help of on-line store (Internet store) is allowable only after written concern of the Company. The partner shall request for written concern of the Company prior to begin products realization through on-line store (Internet store).

Sales with the help of platforms of e-commerce such as е-Bay, Amazon.com and other similar platforms are prohibited. The only approved on-line store is official on-line store of the Company.

Exhibition (show) of products and printed materials of the Company is possible only after getting written consent of the Company by the partner and only after the partner undergoes necessary training concerning such events.

4.3. In case interested party cooperates with the other company with multi-level marketing system and wishes to become a partner of the Company, this party should know that collaboration with the Company shall be completely separated from cooperation with the other company that uses multi-level marketing system as the way for its products promotion. Also potential partner shall not use those new contacts, which he will probably get on the base of the existing network of the Company for the development of the activities in the other company.

Partners, despite their level of qualification, are not allowed to collaborate with the manufacturers, whose production and sphere of action compete with the products and the sphere of action of the Company. In case of violation of the terms of this item, the Company reserves the right to unilaterally terminate the relations with the partner.

Partners, despite their level of qualification, are not allowed to collaborate with other manufacturers and sell their production without a written agreement from the Company. A partner, who fails to keep up with the rules of this item, will have to go through a discussion with the Company in the course of which there will be pointed the revealed violation of Corporate Policy. If the partner does not eliminate the violation during 2 (two) calendar days, the Company will consider the given fact as deliberate violation of rules of Corporate Policy; the Company reserves the right to apply punitive damages against the partner, which can vary from 3 (three) months of temporary blocking of partner’s code to complete termination of collaboration between the partner and the Company, depending upon the degree of violation.

When the partner reaches the level of Bronze Master and higher, the Company does not accept the possible beginning of partner’s collaboration with the other company that uses multi-level marketing system as the way for its products promotion not depending upon the subject of its activity. Such collaboration is a serious violation of rules of Corporate Policy.

The Company reserves the right to send a warning to the partner and demand from him to choose between two or more his activities, which refer to multi-level marketing system, and/or continue collaboration only with the Company.

When partner reaches the level of Golden Master and higher, the Company does not accept a partner’s collaboration with the other company that uses multi-level marketing system as the way for its products promotion not depending upon the subject of its activity. It becomes the fact of violation of Corporate Policy. Such collaboration is a serious violation of rules of Corporate Policy and can result in serious punitive damages from the Company’s part, which can vary from 3 (three) months of temporary blocking of partner’s code to complete termination of collaboration between the partner and the Company, depending upon the degree of violation.

In case the spouse of the partner, who reached the level of Golden Master and higher, cooperates with the other company that uses multi-level marketing system as the way for its products promotion, then such partner is not allowed to take part in Company’s meetings.

Each partner, who reached the level of Golden Master and higher in the Company, shall inform the Company if his spouse cooperates with the other company that uses multi-level marketing system as the way for its products promotion.

4.4. With the aim of optimal functioning and maximum efficiency of communication with VIP-leaders, the Company has created Board of Top-12 leaders of the Company and Board of Top-10 regional leaders of the Company.

Board of Top-12 leaders of the Company consists of 12 (twelve) highest leaders of the Company all over the world, while Board of Top-10 regional leaders of the Company consists of 10 (ten) highest leaders of the Company in certain country or region.

Selection of participants for Board of Top-12 leaders of the Company is done as per following procedure:

а) Participants shall have the title of VIP-MASTER;

b) Out of all VIP-MASTERS 12 (twelve) persons are selected, who during 1 (one) calendar year have gained the maximum number of corporate grades received due to their personal recommendations. For counting only corporate grades are considered created by VIP-MASTERS themselves as sponsors, but not classification of titles of VIP-MASTERS.

c) When new Board of Top-12 leaders of the Company is formed, it will function in this composition for 1 (one) calendar year. For this year all partners will be classified for forming the next Board of Top-12 leaders of the Company.

Board of Top-12 leaders of the Company is called:

1) 1 (once) per month, via Internet connection together with managers and representatives of the Company with the purpose of discussing and settling current issues;

2) every 6 (six) months via the meeting of Company´s managers and representatives with the development purpose of corporate strategy.

Selection of participants for Board of Top-10 regional leaders is determined by their title and Steps realized by them according to the Compensating plan. Meetings are held once per 3 (three) months after invitation of the Company with the aim to provide team spirit, integration of different opinions, presentation of proposals that could help in the development of the Company and following ethics among the partners. During these meetings the Company shall also inform the leaders about its future plans, new products, promotions and everything that could support their activity and their network structures in the Company.

Each participant of Board of Top-12 leaders and Board of Top-10 regional leaders is absolutely free to express his opinion, comments and proposals concerning the Company on condition that his position will be expressed in decent and polite way, in context of common sense and with emphasis on promotion of collective, but not personal interests. If the participant of top-board performs illegal actions during meetings not for once, the Company has the right to exclude this participant from top-board.

What concerns making decisions on issues discussed at each meeting of top-boards and taking into consideration the fact that top-boards, as a rule, are of recommended character, all final decisions on issues discussed on each meeting of top-boards are left at the discretion of the Company and her corresponding administrative employees. The Company can delegate authority to top-boards to make decision on certain issues, but it is not obligatory and permanent for the Company. Final decisions related to functioning of the Company, prices for products, personnel and policy are completely made by the top-managers of the Company.

4.5. Regularly the Company announces awards, promo sales, arranges seminars and trainings on successful development of multi-level business and increases of sales. Each partner at the level of Platinum Master and higher, after proper request from the Company’s part, can be engaged in participation as the speaker at the above activities (seminars, training), not requiring any remuneration for this from the Company. Team work and collective interests are the main values of the Company, in the center of which there is a man, who has a mission to help all his partners and clients in the best possible way.

4.6. The partner is considered as an independent partner of the Company and has the right to use the logo of the Company on his business cards and in personal correspondence only with preliminary written consent of the Company.    

The partner shall not present himself as the representative, agent or employee of the Company, as well as use full commercial designations of the Company (DETA-ELIS HOLDING, DETA-ELIS EUROPA GmbH, DETA ELIS HELLAS, DeL’OR, DeVita) in correspondence or in advertisements.

4.7. Partner has the possibility, if he wants, to create personal and independent web-site, the purpose of which will be advertisement and promotion of the Company’s products, as well as attraction and registration of new partners. Prior to locating his site in Internet network the partner has to notify the Company in written about his intention to create a site, and then receive a written approval of the Company. E-mail (URL or domain name) on partner’s web-site cannot contain names or component words of the Company’s name (e. g., deta-elis, detaelis, deta, elis, DETA-ELIS HOLDING, Del’or, DeVita, DETA-ELIS EUROPA GmbH, DETA ELIS HELLAS and etc.) without written approval of the Company. Obligatory and necessary condition is the indication of full information about the partner on home page of web-site and a notice that the site is personal and not official web-site of the Company.

Information, texts, graphics, images, sounds, videos, links, and software as well as information posted on Company’s website, social network accounts, and private (official) YouTube Channel are the property of the Company and shall not be copied, distributed, displayed, reproduced or transmitted by its partners in any form or by any means, including, but not limited to, mechanical, electronic, photocopying, recording or otherwise, without giving a direct link to the source. Copyright ©. All rights reserved.

If Company’s copyright is infringed by the partner, the Company is entitled to send the partner a warning letter telling it to remedy any violations detected and refrain from doing it again in the future. If the partner fails to remedy the violations detected within the time limit stipulated in the warning letter, the Company may contact the web hosting company which provides the partner with website deployment services (Hosting Provider) and/or the company where the domain name of partner’s website has been registered and demand to block information that is subject matter of Company’s copyright.

It is recommended to avoid all kinds of things that can mislead any guest of this web-site concerning property rights for the site and create false impression that web-site belongs to the Company. Web-site of independent partner, who refers to the Company, shall have a single subject the Company itself and its products and not refer to products or services of other companies, not depending upon their field of activities. If the partner created electronic store (Internet store) on his web-site, then retail price of products shall not be less than purchase price, by which the partner purchased the products. If the partner violates the conditions of this item, the Company has the right to apply punitive damages to such partner in the form of temporary blocking of partners code or complete termination of cooperation between the partner and the Company (depending upon the degree of violation).

Conditions of this item remain similar in case of creating accounts in socials networks by partners, functioning and activity of which is related to the cooperation with the Company.

Advertisement in search systems, such as Google Adwords, can take place only on condition, when it is clearly written that advertisement is placed by independent partner.

4.8. The partner has the possibility to advertise his activity related to the Company distributing printed and advertising materials of own production, on condition that the contents of these materials comply with official policy of the Company and is approved by the Company for its distribution.

4.9. All information, which is provided to the partner by the Company through data base of back-office, including names, addresses, contact information and everything that refers to the network of partners and network structures of the Company, is confidential informative supply and property of the Company. Each partner shall use the above data for development and strengthening of his activity in the Company, and not promote the distribution and use of this data for his other activity or in favor of third parties.

Namely, it is strictly prohibited to use this data for the development of other activity, which functions on the basis of multi-level marketing sales system.

4.10. Any individual person or legal entity that addressed to the Company with request to cooperation voluntarily informs and provides the Company with his personal data. Due to this the partner agrees that the Company has the possibility to process his data with the purpose of creating and developing business, calculation of his rewards and other bonuses that are charged to him from the Company’s part.

The partner agrees that the Company has the possibility to access back-office to monitor personal information about the partner and his sponsor line with the purpose of best interaction, contact and support of his business development.

4.11. The Company can delay sending of products ordered or payment of reward, if it is related to unforeseen circumstances, such as riots, embargo, labor disputes, acts of terrorism, earthquakes and natural disasters, floods, fires, damage to the electrical and telecommunication networks, etc. If any of the above force-major circumstances occur, the Company bears no responsibility for the delay of shipment of products or payment of rewards.

4.12. To the extent permitted by law the Company and its employees bear no responsibility, and partners do not consider the Company responsible and waive any claim for damages reimbursement to the Company and related persons due to loss of profit or any other loss, which partners may suffer due to:

а) violation of rules of Corporate Policy from the partner’s side;

b) erroneous and false statements addressed to clients from partners part on functioning and proper use of the Company’s products that leads to complains and legal consequences from clients part;

c) erroneous recommendations that refer to client’s health (or even illegal and inadequate recommendations of partners, who probably defined themselves as “doctors” not having any legal ground) that in the result will have unfavorable effect on clients and lead to claims and legal consequences from clients part to the partners.

If it is confirmed that one or several partners of the Company performed the above actions described in this section and as a result the Company will be involved in juridical procedures that will lead to juridical decision that requires the Company to perform payments, pay a penalty, compensation, pay juridical expenses and other types of payments, then each certain case shall be reimbursed to the Company by the partner or partners according to all corresponding damages and expenses of any kind that occurred due to violation of Corporate Policy by this partner/partners.

5. RETAIL SALES AND ETHICS OF COMPANY’S SALES

5.1. The Company provides 100% guarantee to all its products available for clients and partners of the Company. Return of products is done according to the existing law of the country, where the product was purchased.

Product return shall be done in the same condition as it was received, with untouched packing and its identification marks-characteristics. When product is returned it shall be accompanied with all documents included to the packing, bills of retail sale or packing lists. If client or partner try to return the product that was damaged in the result of improper use (for example, product that has evident mechanical damages or accumulation of moisture), the Company has the right to reject the product and will recommend technical repair at the expense of the client or the partner. If the product is returned, the Company cancels corresponding grades and other rewards with all engaged partners that were charged to them during transfer of this product. The Company reserves the right to reject the repeating returns of the products from the same persons.

5.2. For 30 (thirty) days since product purchase the client has the possibility to return properly argued faulty product of the Company or replace it by the new one. In this case potential expenses on product delivery from the client to the Company shall be borne by the Company.

5.3. Electronic health-improving devices of the Company have 2-years guarantee. If for 2 (two) years since the date of purchase there is a fault in functioning of this product, not in the result of improper use by the client/customer, then the Company shall take the responsibility to repair and return the product to the client or the partner free of charge for the latter. If repair of this product is impossible, then the Company will provide a new product to the client or the partner.

5.4. The Company provides the possibility of repairing the damaged products in the result of improper operation by the customer, on condition that the product is subject to repair. The repair is done by qualified specialists of service centers of the Company for reasonable charge and within after sales service that is offered to the clients and the partners by the Company.

5.5. Return of product covered by the guarantee by the client or the partner means the return of all rewards (bonuses) to the Company that were charged to the partners network of the Company in the result of promotion of this product. If it is impossible to do directly, i.e. return all rewards (bonuses) because probably they were converted into cash by some partners, in this case the Company reserves the right to require amounts from these partners or charge in future partner’s rewards (bonuses) equal (to this sum).

5.6. Each partner of the Company shall be completely informed about the Company’s mission that directly refers to restoration of health in the society, as well as respect innovative technology that is present in each product of the Company. In this context it is important that each partner during the whole process of informing and selling Company’s products to public follows the principles of honesty, justice and responsibility at the highest level.

5.7. Every time when a partner contacts a potential client, he shall immediately inform the client about his status, activity of the Company, kind of products and reason why he contacts the client. Those partners, who introduce themselves providing the client with wrong status with the aim to influence his opinion and final decision of potential client, will be seriously reprimanded or suffer punitive measures from the Company’s part. Direct task of the partner is detail presentation of the Company and its products, and not direct or indirect effect on potential client for performing any purchase.

5.8. The partner shall perform his activity with dignity and never use methods of unethical, misleading and dishonest sales. It is strictly forbidden to distribute information about those properties/characteristics of the products that are not indicated in the documents of the Company. All products shall be described clearly and honestly, all questions of potential clients shall be answered clearly and in understandable way. The partner shall help each client to select the most appropriate product and not try to sell him the product that he probably does not need. The partner shall clearly inform the clients about the price of the product and way of payment.

5.9. The partner shall keep from excessive statements about product efficiency and not provide the clients with information he is not sure, or he is not aware of, or he has no authority to provide. If any of the partners provide information that does not comply with information contained in the documents of the Company, as well as exaggerates and provides false statements and this is known by the Company, the Company has the right to direct strict reprimand to the partner.

5.10. Company’s products shall be used only according to instructions proposed by the Company. If any of the partners offers to the client the way of product use that is not recommended by the instructions of the Company, and in future the client will try to reimburse through legal proceedings due to non-satisfaction by the product, the Company shall not support the partner, who will bear complete personal responsibility for his actions.

5.11. The partner shall respect private life of his clients, as well as their possible wish to terminate contact with the partners of the Company at any moment. Moreover the partners of the Company cannot operate their clients in financial or any other way.

5.12. Company’s products are aimed only for sales and not in any way for rent/lease of any kind. The partners are strictly forbidden to order products of the Company for the purpose of their renting/leasing to potentially interested persons for any period. Such practice is considered unfair competition relatively the other partners and is the violation of rules of Corporate Policy. The Company has the right to bring the partner to responsibility, who violated the conditions of this item.

6. RULES OF BEHAVIOR AND OTHER REGULATORY PRINCIPLES

6.1. Principal intent of the Company is learning corporate culture by its partners, which characterizes and determines the relations between the Company and its partners, as well as relations between the partners not depending upon the fact whether they relate to one sales structure or different. All partners are expected in all cases to be polite in speech and behavior relatively the employees of the Company, their representatives and all other partners. Their behavior shall be honest, sincere and integral that gives additional prestige of the Company, other partners and system of multi-level marketing in general. Each partner shall understand that he is part of wider range of people, who have a common goal and purpose, that is why he must necessarily show positive behavior in the air of cooperation and team work relatively all other partners.

6.2. The partner shall take care of the Company’s reputation, stick to high ethical principles that follow the air of competition among the partners.

6.3. The partners are prohibited to propagate methods of getting income that do not comply with the rules of Corporate Policy of the Company.

6.4. The partner shall prevent violation of Corporate Policy, timely informing the Company about any illegal activity performed by the other partners.

6.5. Partners of the Company shall not discredit their partners, products and services of the Company, Compensating plan, leaders and personnel of the Company in the eyes of third parties or even other partners. Any proposals, comments, issues concerning the above and all the rest, related to normal functioning of the Company, shall be directed in written to the Company. Correspondence between partners and the Company is confidential, and the Company is not obliged to publish it or disclose to third parties.

6.6. All partners are recommended to abstain against attracting partners-applicants, who are already at the stage of discussion, informing or beginning of cooperation with the Company due to efforts of the other partner.

6.7. If during corporate activities and seminars the partners become (or try to become) sponsors of persons, who are guests at this activity by invitation of the other partner, it is considered that they practiced (or practice) the so-called policy of “illegal approach and capturing of guest”. This practice is a serious violation of Corporate Policy and in case of any written complaint to this incident, the Company will carefully investigate each situation and take corresponding measures on each certain case.

6.8. Partners should respect each other as they are all the participants of collective commercial activity. Support of sponsor network is the main component of productive work of multi-level marketing system of the Company and the most necessary item for strong development of sales structures of the Company. If partner proved to capture the other active partner, who belonged to the other structure, and included him to his personal structure, in this case the Company will transfer “captured” partner and all his network (that he created) back to his initial positions. Moreover the Company will apply sanctions against the partner, who performed capturing of the other active partner, that consist in temporary (up to three months) blocking of his code. If partner, who performed capturing, repeats this action again, the Company will stop cooperation with him and his login will be cancelled without restoration right.

Each partner, who receives a proposal from other partner to join the other structure, shall immediately inform the Company about it.

6.9. Relations between partners is the basis of business profitability in your region.

For the purpose of creating reliable and successful business in city, region, country the partners unite their efforts not depending upon the organization they belong to. They together plan business, perform common activities, exchange speakers and support each other in all aspects of activity. Such interaction is the necessary condition for creating and success of business. Speaker is business-training manager, partner or representative or VIP-leader of the Company, who speaks at online and offline activities arranged by the Company and her representatives.

Partners, who perform their activities in different regions, shall help each other in business development, not depending upon the organization they belong to.

6.10. In case of disputes or conflict situations with the clients the partners shall settle them in the most decent and positive way and according to the existing law, first of all taking care of the interests of the clients.

6.11. The partners shall settle disputes in such a way, so that not to involve other partners.

6.12. Partners shall stop rumoring, which could negatively affect business reputation of this or that partner, and maintain positive atmosphere in partner’s medium.

6.13. Back-office of each partner is a personal and confidential element of his cooperation with the Company. Each partner is a single authorized person to enter his personal back-office and for performing all operations, which he considers reasonable. Any entrance performed by the partner to back-office of the other partner without permission of the latter is a serious violation of Corporate Policy and completely infringes the right of personal data protection, which covers all partners. If written complaint was directed and such violation was stated, the Company will apply strict sanctions against partner-breaker depending upon the degree of the violation.

6.14. No partner or leader is allowed interfering to the activity or influencing it by expressing opinion, making comments, giving recommendations to partners that do not belong to his sales structure without the approval of responsible leader of this structure. If leader of some structure is addressed by the partner of the other structure on any question concerning his activity, this leader shall direct him for consulting to his leader.

6.15. The Company provides to the partners independent commercial business-possibility, as equal for everybody, available for any person not depending upon his ethnic origin, sex, nationality, religion or political views of the applicant.

During presentation, proposal on cooperation with the Company the partners bear the responsibility for complete, clear and maximum precise presentation of the Compensating plan, at that not using misleading tactics of recruiting that can attract potential partner bypassing all ethical norms. In the course of presentation potential partners shall be informed, firstly, that it is simply a proposal for cooperation, and not the proposal of employment and, secondly, in this cooperation there is no exclusiveness or representative office in the city, region or country.

6.16. All partners, who become sponsors of new partners, shall pass the whole air of corporate culture to partners-applicants and pay their attention to observation of rules of Corporate Policy. Each sponsor together with his leader of structure is responsible for informing new partner on proper use of products and possibilities of receiving reward according to the Compensating plan. In such a way partner shall support, encourage, direct to proper way and stimulate his new partner on creating his own independent business. Leaders shall teach their partners of principles of joint work in network and prevent any illegal activity especially that refers to non-ethical practices of attracting new candidates, which can affect the reputation of the Company, products and services of the Company.

All leaders shall regularly hold meetings and seminars aimed at informing and teaching their sales network, as well as take part in all activities arranged by the Company, and be communication carrier of all programs, activities and advertisements of the Company.

6.17. Partner has no right to sign the second agreement with the other sponsor, if the first agreement is not expired yet and 6-month period of inactivity has not yet finished.

6.18. Partner has no right to sign the second agreement in the name of his spouse or any other person with the aim to continue partnership activity under the other partner (sponsor). In such case the Company performs an investigation and returns the organization to the first sponsor with the following re-calculation of all rewards received in the interest of the first partner (sponsor).

6.19. Partner has no right to attract other partners for signing the second agreement under the new sponsor, except situation, when the first agreement expired and corresponding period of inactivity was observed.

For information on signing date and expiration date of the first agreement it is necessary to contact Clients service department of the Company.

6.20. Partner (sponsor) has no right to demand from accepted independent partner payment for training or provision of training means, if he does not explain to the partner that his participation in special training programs and trainings depends upon his wish only. Partner (sponsor) is obliged to teach him the necessary basis for cooperation with the Company.

6.21. If the partner violates the rules of Corporate Policy, the Company reserves the right to freeze the bills of the partner, who violated the rules of Corporate Policy, for any period.

6.22. The Company reserves the right to restore the bills of the partner, who violated the rules of Corporate Policy, at the discretion of the top-management of the Company at any term convenient to them.

7. PROGRAM OF REWARD,

CORPORATE LADDER AND OTHER BENEFITS OF THE COMPANY

7.1 Purpose of reward program is an optimally stimulating personal development and economical independence of partners of the Company. Main principles that are the basis of the program of rewards are justice, simplicity, collective work, speed and efficiency. Sales structure of each partner is based on development of both lines (binary system) – right and left line, while reward program includes the following four main stages of charging reward that cover all spectrum of each partner’s activity:

1) Retail Sales Profit – profit received by the partner from product selling to end user. Recommended retail price of product is calculated by adding 20% to the value of purchase price from the Company.

2) First Line Bonus – reward charged to the partner for personally invited partners-applicants and partners included into the network of the Company according to the provisions of Corporate Policy.

First Line Bonus is paid to the partner at the same day, when the product was sold to each partner (in back-office) of the Company.

3) Star Bonus – this reward is paid to the sponsor, who properly and efficiently taught new partner binary development and helped him to get star title*. Star bonus - 1500 units of the Company (37.5 euro), at the same day, when requirement on reaching is fulfilled.

* New partner, who within one week since the day of registration personally invites two partners (one to “left”, and the other to “right” line), and they activate their registration.

4) Network Bonus – reward for the development of network that is charged at summing one thousand (1000) of grades in the sales structure of each partner, together from both sides, with grades ratio 500/500, or 700/300, or 300/700.

Obligatory condition for this reward payment is personal recommendation of one partner from left and one partner from right line. Reward for development of network, i.e. adding one thousand (1000) of grades turns into 1 step - 3000 units of the Company (75 euro) and is paid at the same day, when requirement on reaching is fulfilled.

7.2. Rewards to partners are paid according to the Compensating plan, up to 15th day of the next month following the month of reaching. Reward payment is done by money sum transfer to bank account of the partner. Bank account of the partner shall belong to individual person, individual (private) entrepreneur, legal entity and be documentarily confirmed.

7.3. Corporate ladder defines and highlights evolution of partners based on levels of qualification they reached in combination with corresponding corporate grades, which are required, in definite percentage quota between two parts. Corporate ladder after star title consists as follows:

Master	1 step	1 corporate grade
Bronze Master	15 steps	2 corporate grades
Silver Master	45 steps	4 corporate grades
Golden Master	100 steps	8 corporate grades
Platinum Master	250 steps	16 corporate grades
VIP Saphire Master	500 steps	24 corporate grades
VIP Ruby Master	1000 steps	48 corporate grades
VIP Emerald Master	2500 steps	96 corporate grades
VIP Diamond Master	5000 steps	192 corporate grades
VIP Black Diamond Master	10000 steps	384 corporate grades

Required percent ratio of corporate grades between two lines shall be 50/50 or 75/25 or 25/75.  Pre-condition for reaching each title at corporate ladder is the fulfillment of all three requirements at the same time, namely necessary steps, required corporate grades, as well as required percent ratio of corporate grades between two lines of the structure. In case if the partner fulfills steps required only for getting title without fulfillment of other two requirements, then his payments are temporaryly blocked and he has one month to fulfill the other conditions. If within this month the partner succeeds in fulfilling all requirements, then his payments are released and steps that the partner performed during this time are calculated for getting the next title. Otherwise, if the partner fails to fulfill all requirements during this one month, though his payments will be released after one month, but steps that he performed during this period of time will not be calculated for getting the next title of corporate ladder.

7.4. Each partner with title of Master and higher, who does not renew his code or his cooperation with the Company was terminated due to any of reasons described in section three of Corporate Policy, will not be considered at calculation of corporate grades of his sponsor. At that, all active partners, whom he recommended personally to the Company, will be considered as personal recommendations of his sponsor, and as the result, those, who are Masters and higher will be considered at calculation of corporate grades of sponsor of this partner.

7.5.  For successful leaders the Company determines two different intensive trips with the purpose to motivate, teach and entertain them, as well as consolidate corporate feelings. Below there is a description of these trips purposes:

Α) PLATINUM TRAVEL SEMINAR

Any partner, who got the title of Platinum Master for the first time, wins his participation in the next PLATINUM TRAVEL SEMINAR. It is 4-days trip to Moscow. During this trip partners will visit the Head office of the Company, as well as take part in specialized seminars held especially for them by VIP leaders of the Company. The Company bears all expenses.

B) VIP TRAVEL CONFERENCE

Every year the Company arranges a 7-days VIP TRAVEL conference, which is held each time in new place. This intensive trip is taken by:

• 1) VIP partners, who were the participants of Board of Top-12 leaders of the Company last commercial year;
• 2) Partners, who were first included to the lists of VIP Masters of corporate ladder last commercial year;
• 3) VIP partners, who got new VIP title of corporate ladder of the Company last commercial year.

Each successful participant of VIP TRAVEL CONFERENCE has the possibility to provide to one partner from sales structure, by his own choice, additional place in this trip on condition that this selected partner is at least Bronze Master in corporate ladder of the Company.

Participants of VIP TRAVEL CONFERENCE among other things have the possibility to visit specialized seminars related to their activity. Seminars are held by experienced speakers under the guidance of the Company.

During the above activitites the Company summarizes the cooperation with Board of Top-12 leaders of the Company and announces new composition of Board of Top-12 leaders of the Company for the next calendar year.