Section 11 – Breach of Contract: Procedures

Complying with the IBO Contract is essential for preserving a viable business for IBOs. IBOs and Amway each have rights and responsibilities in case of a breach of the IBO Contract. The presentation of the Amway Sales and Marketing Plan is integral to the way in which the Amway Business is exhibited to the public. Any misrepresentation of the business or other serious breach of these Rules may damage Amway’s public image or may involve Amway IBO in illegal conduct. This section permits Amway to place an IBO who has misrepresented the business or who has committed other serious breaches of these Rules, on probation and to compel them and their personal group to attend training on the correct and ethical presentation of the Amway Business Opportunity.

11.1 Procedures.

11.1.1 Investigation: When Amway believes that a breach of the Rules of Conduct or the Amway Business Policies has occurred, will occur, or is threatened to occur, Amway may investigate the activity of the IBO at issue. Amway may undertake this investigation on its own initiative or when requested by another IBO who has submitted a written complaint to Amway as provided in Rule 11.1.2.

11.1.2 Complaints by IBO: An IBO who believes that another IBO has breached the Amway Business Policies and/or the Rules of Conduct, or who has personal knowledge of the activities leading to such alleged breach, shall notify Amway in writing of the alleged breach and all facts connected with it. A copy of this notification may be provided either by the IBO or Amway to the IBO’s Upline Platinum. Amway will do initial investigates of the complaint to determine if there is substance to the complaint and if further investigations are required. If further investigations are required, Amway will notify the appropriate IBO of the complaint and request an immediate response. If the complaint and response do not contain sufficient facts upon which to make a decision, additional information may be requested from any party by Amway. When Amway believes that it has sufficient information regarding the facts and circumstances relevant to the complaint, Amway will decide whether there has been a violation of the Amway Business Policies or other breach of the Rules of Conduct and will take appropriate action in accordance with Section 12.

11.1.3 Notification of Action. Amway will forward a decision letter to the violating IBO. The decision letter will list the specific complaint(s), outline the corrective action to be taken and, if appropriate, set a time limit for the IBO to comply. Any notice shall:

a) Be mailed, e-mailed or faxed or sent by registered mail or other confirmable method allowable by law to the address or fax that Amway has on record for the IBO. Claim of failure of an IBO to receive a notice shall not delay the action by Amway;

b) If applicable, state the Section(s) of the Rules of Conduct or other provisions of the IBO Contract violated or breached by the IBO;

c) If applicable, state the date of which any such action shall become effective; and

d) If applicable, advise the IBO of his/her opportunity to seek Review of Amway’s decision through dispute resolution in accordance with Section 14 of these Rules. An IBO will have 28 days to lodge a review under Section 14.

11.2 Dispute Resolution: If an IBO does not agree with the actions taken by Amway, then the IBO may request the decision be reviewed in line with the dispute resolution mechanisms outlined in Section 14.

11.3 Waiver of Claims: An IBO waives any and all claims against Amway arising out of or in respect to any action that Amway takes under the IB and/or this Rule. An IBO who is terminated, de-sponsored or has other action taken as a result of a violation of the Rules of Conduct or the Amway Business Policies shall have no claim against Amway arising out of or with respect to the termination or de- sponsorship.