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 IB is terminated, desponsored or not renewed, the IB is considered abandoned, and the signatory to the IBO Contract shall have no further rights in the IB. The IB will vest in Amway without any obligation or liability to compensate the IBO. Amway may assign, dispose or dissolve the IB 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 IB 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 IB: 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:

a) The sale shall be offered in the order of priority imposed by Rule 6.11 above.

b) The terms of the sale will be set forth in a written contract executed between Amway and the purchaser.

c) 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.

d) 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.

13.1.2 Dissolution of IB: If Amway elects to dissolve the IB, the first qualified Sponsor/IBO of the former IBO in the Line of Sponsorship may undertake the obligations of the former IBO and assume the role of Sponsor for all IBOs who had been personally or Internationally Sponsored by the former IBO.

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 Independent Business and may exercise complete discretion as to methods and/or timing of disposition.