Section 13 – Disposition of Terminated or Non-Renewed IBO ship
This section outlines the options available to Amway to maintain stability in a line of sponsorship where independent businesses revert to the company as a consequence of contract sanctions.
- 13.1 Abandonment: When an IBOship is terminated, desponsored or not renewed, the IBOship is considered abandoned, and the signatory to the IBO Contract shall have no further rights in the IBOship. The IB will vest in Amway without any obligation or liability to compensate the IBO. Amway may assign, dispose or dissolve the IBOship at its sole and absolute discretion. In exercising its prerogative hereunder, Amway may elect to employ one of the following methods or any other method permissible by law, and may unilaterally modify and amend the IBOship of any affected IBO to change their Sponsor and the Line of Sponsorship as may be necessary to implement such decision:
- 13.1.1 Sale/Assignment of IBOship: If Amway elects to sell/assign the right to operate an Amway business in the former IBO’s position in the Line of Sponsorship, the following will be observed:
- The sale shall be offered in the order of priority imposed by Rule 6.11 above.
- The terms of the sale will be set forth in a written contract executed between Amway and the purchaser.
- The purchasing party shall operate the Amway business in the position in the Line of Sponsorship held by the previous IBO and it will become their Number 2 Business.
- Following the reimbursement to Amway of all costs, both legal and administrative, in relation to the discipline and ultimate disposition of the IB, all remaining funds resulting from the sale may, at Amway’s discretion, be added to a Bonus/Rebate fund to be distributed by Amway among qualified Platinum IBOs.
- 13.2 No Limitation on Amway: Despite the above, Amway is in no way limited to any of the above methods of disposition of an Amway business and may exercise complete discretion as to methods and/or timing of disposition.