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COMPLIANCE CODE FOR APL INDEPENDENT PARTNERS

Contents

SECTION 1: INTRODUCTION;

SECTION 2: VOCABULARY OF TERMS;

SECTION 3: ACQUISITION OF APL IP STATUS;

SECTION 4: RESPONSIBILITY AND LIABILITY OF APL IP;

SECTION 5: ADDITIONAL RESPONSIBILITIES OF APL IP;

SECTION 6: APL BUSINESS OPPORTUNITY PRESENTATION AND APL MARKETING PLAN;

SECTION 7: USE OF APL INTELLECTUAL PROPERTY ;

SECTION 8: DEATH OF THE APL IP AND SUCCESSION OF THE APL BUSINESS;

SECTION 9: VIOLATION OF THE REGULATIONS OF THE AGREEMENT: SANCTIONS, PROCEDURES;

SECTION 10: COMPLIANCE WITH REQUIREMENTS;

SECTION 11: DISCIPLINARY COMMETTEE.

SECTION 1: INTRODUCTION

APL company and APL's Independent Partners have contractual relationship.

1.1. Agreement. The APL business rules establish APL business conditions and define the rights, obligations and responsibilities of each independent partner of APL (hereinafter referred to as APL IP or IP). Together with other additional Policies of APL, they form an integral part of the APL IP Agreement and are incorporated into the document that the applicant signs and submits to the APL Company in order to obtain the status of an Independent Partner of APL by a direct reference.

1.2. All Independent Partners of APL shall conduct their business honestly and in good faith and in full compliance with the terms of the APL IP Agreement.

1.2.1. The terms and conditions of the APL Independent Partner Agreement. In compliance with the terms of the APL IP Agreement, APL's independent partners have the right to buy and resell APL products, as well as to sponsor other APL IP. According to the terms and conditions of the APL IP Agreement, Partners take their place in the Sponsorship Leg and are entitled to receive benefits coming from the development of the sponsorship leg, and have the opportunity to receive cash payments and other rewards in compliance with the APL Marketing Plan, as well as to receive recognition and qualifications, awards and rewards if all the conditions and requirements of the APL IP Agreement, as well as the APL Business Rules and the APL Policies, are met.

1.2.2 The terms and conditions of the Agreement. An APL IP has the right to sponsor other APL IP and buy the APL product for personal use, as well as take part in special offers.

1.3 Amendments. The APL Company reserves the right to occasionally change the Business rules, the APL Policies and other provisions of the APL IP Agreement in whole or in part. The amendment of the Business rules, the APL Policies or the APL Marketing plan shall be published on the official APL website or otherwise if it is allowed by the current legislation. All the amendments come into effect as soon as they are published or as soon as stated in the publication.

1.4 Severability. If any provision or provisions of the Business Rules is / are held to be illegal or otherwise unenforceable by decision of a court or other entitled authority, the remainder of the Rules and the APL Policies shall still apply.

1.5 Neither of the provisions of this document contravenes the rights of the APL IP that are provided by the law and stay inviolable and valid for all the IPs.

SECTION 2: VOCABULARY OF TERMS

Authorized supplier is any supplier nominated by the APL Company and who has the right to provide the APL IP with training materials (hereinafter referred to as APL TM) or use APL TM with a potential APL IP.

APL business is a business provided by APL IP ID and APL IP Agreement.

Business-group includes all the other APL IPs who are under the APL IP, but APL IPs who have a sponsor support from the IPs of lower level are not included. APL business opportunity includes products, marketing, support and principles of benefit payments that are provided by the APL Company in compliance with the APL IP Agreement. The leg includes all APL IPs who have sponsor support from a particular APL IP and all the other APL IPs who are under sponsored APL IPs of this particular APL IP. Benefit payments or benefits are cash payments that the APL Company gives the APL IP in compliance with the APL Marketing plan. Qualification means a certain level of achievements that gives the right to receive relevant awards, recognition, rewards and other types of positive reinforcement in compliance with APL Marketing plan. APL Company means APLGO LTD, 10342004V, Sofouli, 28, CHANTECLAIR BUILDING, 2nd floor. Flat/Office 213 Trypiotis, 1096, Nicosia, Cyprus or any controlling or affiliated company or its division, depending on the context. Husband&Wife mean official matrimony (marriage) of two individuals (or other definition provided by the current legislation), while “married” or “spouse” means one of the individuals of this official matrimony (marriage) (or other definition provided by the current legislation). It is an individual or a legal entity whose application form has been accepted by the APL Company. APL IP is an independent contracting party; APL IP is not an affiliate marketer, agent or broker. Particular IPs can have a qualification title in compliance with the qualification system used by the APL Company and in compliance with the terms and conditions of the APL Marketing plan and other official printed materials of the APL Company.

APL official printed materials or APL official materials are informational magazines, booklets, circulars (flyers) containing information about products, as well as labels, audio and videotapes, CDs and other types of multimedia materials created by the APL Company for the APL Company and that can be purchased within the APL Company. Official APL website means any website maintained and supported by the APL Company or which contents is owned by the APL Company or contains information about the APL Company, its business opportunities, products and/or services. These include aplgo.com, shop.aplgo.com, backoffice.aplgo.com, photo.aplgo.com. APL Marketing Plan (APL MP) is a benefit and APL IP recognition calculation scheme that provides the APL IP with payment of benefits and provides recognition in compliance with the APL official printed materials. An APL IP achieves particular level of recognition in compliance with the APL Marketing plan.

APL Policies are rules, terms, conditions and policies stated in the APL official printed materials including the APL Business Rules and other APL Policies that can be occasionally introduced by the APL Company and included in the APL IP Agreement by a reference. Potential APL IP means an individual that can potentially become an APL IP. APL Products mean all the goods and products that the APL Company gives to the APL IP for any legitimate use.

SECTION 3: ACQUISITION OF APL IP STATUS

3.3 Acquisition of APL IP status requirements. The individual who is ready to sign an APL IP Agreement must satisfy the following requirements (no rights of the APL Company can be abridged, acceptance of the APL IP Agreement from any party):

3.3.1 The individual shall be entitled to enter the contractual relationships, i.e. shall not be under 18 years old, shall be able to run the business both mentally and legally being in binding contractual relationships, as well as shall be able to conduct relevant and legal activities in compliance with the current legislation.

3.3.2 This individual shall not have an experience of agreement termination due to his/her violation of the terms and conditions of the APL IP Agreement or other agreement with any other APL division.

3.4 Acceptance or rejection of the APL IP Agreement. The APL Company reserves the right to accept or reject the APL IP Agreement.

3.5 Agreement acceptance and its entering into force. The contents of the APL IP Agreement have been verified with the APL Company database, unless a notification about otherwise is sent within three weeks. If the APL Company rejected the registration form, but the business has been created, the APL Company and the APL IP shall consider the Agreement duly registered and terminated on the day when the individual who has applied via registration form received a rejection from the APL Company. If the process of registration has been completed on the official APL website and the applicant has received the registration confirmation from the APL Company in compliance with the APL Business Rules and the APL Policies, the APL IP is now entitled to run business with the APL Company in compliance with the APL Business Rules and the APL Policies.

3.6 Sponsorship (sponsor support):

3.6.1 The APL business opportunity is an equal opportunity for any person regardless of their origin, gender, nationality, religious or political beliefs.

3.6.2 It is prohibited to demand that a potential APL IP who is eager to become a new official APL IP, or that any official APL IP who wants to receive sponsor support in order to develop their business with APL do the following:

a) that they shall buy a particular scope of products or services;

b) that they shall have a minimum scope of particular products;

c) that they shall buy any APL printed materials.

3.7 Termination of the Agreement. An APL IP is able to annul his or her APL IP Agreement by sending a relevant written form. The force of the Agreement shall be terminated immediately. The APL Company can terminate the Agreement in case of a serious violation of the Business Rules or the APL Business Rules only after a special procedure described in the APL Business Rules, and providing that all the efforts to gain understanding failed.

3.8. Agreement renewal. An APL IP has the right to renew contractual relationships with the APL Company. The APL Company has the right to reject agreement renewal in case of the serious violation of the APL Business rules only after a special procedure described in the APL Business Rules, and providing that all the efforts to gain understanding failed.

3.9. Conduct of APL business by an entity. An entity (OOO, a limited liability company) can become a party in an APL IP Agreement as long as relevant terms and conditions are fulfilled. The party can also be of any other legal entity form if it is confirmed by the APL Company. More information in the APL Company representative office. A representative who signs the APL IP Agreement on behalf of an entity must be an authorized official of this entity, as well as must comply with the requirements described in Article 3.3., and must be the majority shareholder of this entity. The same requirement applies to a representative who replaces the previously entitled representative as his or her legal successor. Beside other documents, the entity must be ready to provide the APL Company with proofs of its creditworthiness and its sufficient competence to conduct activities established by the APL IP Agreement, including proofs of compliance with law regarding its official registration, as well as documents containing information about contractual relationship between this entity, its founders and executives or any other relevant information requested by the APL Company.

3.10. Violation inducement. An APL IP shall not conspire with any other body or entity in order to violate the APL IP Agreement or induce any other APL IP to do so.

3.11 Representation and warranties. An APL IP must not provide the APL Company with false information or induce the APL Company to accept the APL IP Agreement on the grounds of false information, or violate any representation or warranty.

3.12 Activities outside the Region or the market within which the APL IP is registered. An APL IP who is involved, directly or indirectly, in any activity related to the APL business outside the Region, must conduct these activities in a manner that complies with the applicable laws, regulations, rules, policies and procedures of an APL division of the relevant jurisdiction, regardless of whether he/she is registered as an APL IP within that jurisdiction or not. In order to comply with this provision, an APL IP shall familiarize themselves with the laws, regulations, rules, policies and procedures of the APL division, whose activities are regulated by the relevant jurisdiction. If this requirement is not fulfilled, this shall be regarded as violation of the APL IP Agreement within all the jurisdictions where this APL IP has contractual relationship with the APL Company. In this case, the APL Company can apply actions and sanctions in compliance with the APL Business rules. An APL IP has the right to conduct activities on unopened markets.

SECTION 4: RESPONSIBILITY AND LIABILITY OF APL IP

An APL IP shall conduct themselves professionally, politely and respectfully in any case, as well as run their business responsibly, effectually in terms of financing (ref. Article 4.4). An APL IP shall not apply pressure or fraud in any situation while selling or marketing.

4.1 Contractual obligations. An APL IP shall comply with the terms and conditions of the APL Business Rules and the APL Policies.

4.1.1 Report of violation. An APL IP shall immediately provide the APL Company with any information related to real or potential violation or threat of violation of the APL IP Agreement including APL Business rules or APL Policies, or any other current provisions or laws by other APL IP.

4.1.2 Contribution to fact finding. Any APL IP shall contribute to any fact finding conducted by the APL Company in compliance with the procedure described in the APL Business Rules.

4.2. APL Products acquisition.

4.2.1. An APL IP obliged to buy APL products and services directly from the APL Company in order to get benefits and recognition in compliance with the APL Marketing plan.

4.3 Import and export of the products/retail outlet.

4.3.1. An APL IP shall not import or export APL Products, as well as shall not voluntarily sell them for import or export from the country where the APL company conducts business to any other country.

4.3.1.1 An APL IP is responsible individually for APL Product compliance with the current local laws and regulations of a particular market if a particular APL product is not registered within this market by the APL Company.

4.3.2. Advertisement. An APL IP has the right to advertise exceptionally under authority of a clearly stated written permission from APLGO LTD. While using any social networks, an APL IP shall conduct their business in compliance with the APL Business rules and the APL Policies.

4.3.3. An APL IP can not exploit any event organized by the APL Company in order to sell, advertise products or make a profit from selling or advertising of products produced by other companies. The same requirement applies to any events organized for APL IP or potential APL IP.

4.4 Precision and accuracy. An APL IP does not have the right to conduct activities, to make statements supporting or relating to the APL business and the APL business opportunity that are false, inaccurate or inappropriate within a particular situation or context. An APL IP can only quote or cite the statements about the APL Products given in the official printed materials or published on the APL websites and confirmed by a particular APL Company division. Consequently, an APL IP shall not:

4.4.1. make any exaggerated or unreasonable statements and / or make statements about the APL Products and services that differ from the information provided in the APL official printed materials, including but not limited: statements about the medicinal properties and effects of the APL Products on human health, as well as the APL products developed and manufactured by health officials and / or other third parties.

4.4.2. represent the APL products inappropriately or products and services offered by the APL Company in terms of price, quality, standard, type, content, design or model, origin or availability.

4.4.3. claim that the products manufactured and offered by the APL Company have certain characteristics regarding the scope, mode of use, availability of accessories or benefits that they do not actually have.

4.4.4. present the APL Company or its products by resorting to fraud, by providing false information, or by promoting products or services not owned by the APL Company, as if they belonged to the APL Company

4.5. Repackaging. An APL IP does not have the right to pack again and in a different way the products or change the label on the APL official printed materials.

4.6 An APL IP must inform the APL Company about any complaints and provide it with the relevant information about them.

4.7. An APL IP shall not give any suggestions, compromise, or impose responsibility on the APL Company for any complaint.

4.8. Compliance with the current legislation, regulations and codes. An APL IP shall comply with all laws, regulations and codes relating to the APL business, regardless of where their APL business can be conducted. An APL IP shall not carry out any activities that could damage their reputation, the reputation of other APL IP, and/or the reputation of the APL Company.

4.9. Fraudulent or illegal business activities. An APL IP should not take part in any fraudulent or illegal business activity.

4.10. Illegal enterprises or activities: an APL IP does not have the right to operate an enterprise engaged in illegal activities, to be involved or engaged in any illegal commercial activity.

4.11. Relationship between an APL IP and the APL Company. An APL IP shall not give reasons to believe by their statements or behavior that they are employees of the APL Company or have any other status different from the status of an independent contractual party operating under an agreement with the APL Company.

4.12. The right to operate in certain territories. According to the APL Marketing Plan, there is no exclusive right to operate in certain territories.

4.13. Sales of products or services manufactured by other companies. If an APL IP conducts business activities related to products and services manufactured by other companies than the APL Company, or related to businesses training materials authorized to be used by other companies, they must comply with the following requirements:

4.13.1. An APL IP who personally sells other goods or services (for example, tax, insurance, investment, etc.) that are not the APL Products, can not induce another APL IP. By “induce” we mean making (or attempting to make) another APL IP sell these goods or services regardless the reasons of this inducement, be it financial benefit or otherwise.

4.14. An APL IP, his / her spouse or other person specified in the APL IP Agreement as an applicant, are not allowed to use information known to him / her about other APL IP or cooperate with other APL IP in order to develop and expand their business that is not related to the APL business.

4.15. Interference in another APL IP’s business. None among APL IP has the right to interfere in the business of another APL IP. Interference in the business of another APL IP means:

4.15.1 Making or attempting to make another APL IP change his or her leg of sponsor support, transfer or refuse the APL business, support or refuse to support a particular potential APL IP.

4.15.2. Making or attempting to make another APL IP refuse to provide training sessions, motivate or support in other ways the APL IP of lower levels.

4.15.3. Making or attempting to make another APL IP violate APL IP Agreement, including the APL Business rules and the APL Policies.

4.15.4. Making or attempting to make another APL IP sell products produced by other companies regardless of the requirements.

4.16. Sale to end-users. The APL Company pays compensation (benefit payments) in accordance with the APL Marketing Plan based on the total of the turnover made by selling of the APL products to end-users.

4.17 Spam. "Spam" means sending out unexpected electronic messages (for example, faxes or SMS messages) to individuals or groups of people. An APL IP can not forward, report or otherwise transfer unexpected emails to anyone without the prior written consent of the recipient. This includes without limitations sending messages via social media, sending emails to certain groups of people by using lists of e-mail addresses or any other lists of individuals and entities.

4.18. Employment announcement. If an APL IP provides a response to an ad from a person seeking employment opportunity, then in the message he/she must indicate that he/she offers a business opportunity, rather than an employment opportunity clearly and in the first paragraph.

4.19. Tampering with the APL Marketing Plan. An APL IP must not tamper with the APL Marketing Plan or with the scope of purchase of products that is considered in the calculation of benefits in any way that can result in benefit payments or other rewards and recognitions that are not earned in compliance with the APL Marketing Plan and its terms and conditions outlined in the APL official printed materials. This provision also applies to unacceptable structuring of the business.

4.20. Updating personal data / business information. All APL IPs are responsible for providing the APL Company with any updates or changes in their personal data (for example, name, address, contact number, etc.) or business information (for example, joint / exit from the business of a co-applicant, changing the status of business, etc.).

4.21. Data secrecy. All the APL IPs are required to comply with the Rules of APL IP personal information use, as well as relevant provisions and regulations of the current data secrecy protection laws. The APL Company owns confidential business information and information owned by the APL Company, as well as trade secrets relating to products and businesses, as it is specified in the APL Business Rules ("Confidential Information"). An APL IP has reviewed and agrees that all Confidential Information must always remain the property of the APL Company and that due to the APL IP access to this Confidential Information as part of the implementation of the provisions of the Agreement, the APL IP can use such Confidential Information only for the purpose and in the way that is defined in the Agreement.

An APL IP, with the exception and in compliance with certain provisions of the Agreement, can not transfer or disclose Confidential Information to a third party, including other APL IPs, without the prior written consent from the APL Company. After the termination or refusal to renew the Agreement, an APL IP shall return all confidential information that he / she owns to the APL Company. An APL IP has reviewed and agrees that violation of this provision can cause irreparable harm to the APL Company that shall give the APL Company the right to implement bans or to take other similar measures aimed at preventing further violations of the terms of the Agreement or leak of Confidential Information. Some obligations regarding data secrecy in the context of this provision must be complied with even after the termination of the Agreement. Addition to the provisions of the APL Business Rules: the use of intellectual property of the APL Company, as well as confidential business information and information owned by the APL Company, in particular, among others, information about the sponsorship leg, business information about the production or development of new products, business plans, APL IP turnovers, incomes, as well as other financial information (that is, information that the APL Company has regarding in part or in whole to the features of the sponsorship system in the APL business, including, without limitation, information such as lists of APL IP, the structure of sponsorship legs, all information about APL IPs or the APL business that can be obtained from information about the sponsorship system in its current and future forms) is a commercially important, exclusive proprietary business secret of the APL Company, which is confidential and is considered to be a trade secret. According to the provisions of the APL IP Agreement, all the types of information described above mean "Confidential Information of the Company”.

4.22 Reputation risks. An APL IP shall not take part in any activities that could adversely affect the reputation of the APL Company, the APL business, the APL products and services of the Company and other APL IP.

4.23. Product sale by the APL IP. The APL Products can be demonstrated and recommended by the APL IP only.

4.24. APL Business opportunity presentation. Only official APL IP can present APL Business Opportunity to a Potential APL IP. Only official APL IP can give sponsorship to a new APL IP.

SECTION 5: ADDITIONAL RESPONSIBILITIES OF APL IP

5.1. General responsibilities of the sponsors. An APL IP who gives a sponsorship support, is obliged to do the following:

5.1.2. Provide a sponsored APL IP with training sessions and motivation in compliance with the APL Business rules and other APL regulations, or to collaborate with APL IP of the higher status to provide a sponsored APL IP with the above mentioned.

5.1.3. Support free relationship with the sponsored APL IP.

5.1.4. Make every effort to assure that the sponsored APL IP fully complies with the provisions of the APL IP Agreement, including terms and conditions of the APL Business Rules, the APL Policies and all the current legislation.

5.1.5. Make every effort encouraging the sponsored APL IP.

5.1.6. Explain to the sponsored APL IP his or her responsibilities and liabilities that are stated in the APL IP Agreement, the APL Business rules, the APL Policies, as well as to provide the sponsored APL IP with information about the APL business in compliance with the APL IP Agreement, the APL Business rules, the APL Policies and other official printed materials of the APL Company.

5.1.7. Comply unconditionally with the APL Business rules, the APL Policies and encourage the other partners from his or her business structure to do the same.

5.1.8. Provide the sponsored APL IP with training sessions within the business structure.

5.1.9. Praise the new APL IP for correct filling of the form of the APL IP Agreement.

5.1.10. If an APL IP is or has previously been qualified as an APL IP of a higher level, she/he must inform the APL Company in advance that he or she starts running business or providing services that can directly or indirectly compete or can be similar to that of the APL business regardless the reason of this activity, be it for personal benefit or benefit of a third party, by using confidential data regarding the APL Company, its consumers or APL IP.

SECTION 6: APL BUSINESS OPPORTUNITY PRESENTATION AND APL MARKETING PLAN

6.1. Invitation to the presentation. When an APL IP invites a potential APL IP to the presentation of the APL Marketing plan, he or she must not create false impression or misinform him or her in any other way about the APL business opportunities or the topic of the presentation. Considering this, an APL IP must not do the following directly or indirectly:

6.1.1. Create an impression that the APL Marketing plan provides an employment opportunity.

6.1.2. Create an impression that the potential APL IP is invited to a public event.

6.1.3. Call this meeting (presentation) “market research”

6.1.4. Call this meeting (presentation) “tax liability seminar”

6.1.5. Present APL business opportunities as collaboration with other body, entity or company that is not the APL Company.

6.1.6. Claim that the products are just one line of the whole scope of products or are part of brokerage services, part of a lot of goods or agency that is controlled by other body, entity or company that is not the APL Company.

6.1.7. Claim that the APL Business opportunity, APL IP or products and services of the APL Company are a part of some other business structure.

6.1.8. Forget to confirm unambiguously that the main purpose of this meeting (presentation) is the presentation of the APL Marketing plan and APL business opportunities.

6.1.9. Take part in any false presentation of the APL Business opportunities, relationship between APL IP and the APL Company, main points of the APL Business, or conceal any information necessary for appropriate valuation of the APL Business opportunities, APL products and services.

6.1.10. Present the APL Business opportunity as passive investments, franchising, insurance, renting, earning fixed income or any other type of investments.

6.2. First interaction with potential APL IP and consumers. When interacting with a potential APL IP or APL products consumer for the first time, the APL IP shall:

6.2.1. Give his or her full name.

6.2.2. Present oneself as an APL IP.

6.2.3. Describe to the potential APL IP the APL Company and the relationship between an APL IP and the APL Company in an orderly manner.

6.2.4. Underline for the potential APL IP that the main purpose of this meeting is presentation of the APL Business opportunities.

6.2.5. Answer honestly and openly all the questions asked by the potential APL IP about the APL Business opportunities, the APL products and services, about APL IP and the APL Company.

6.3. Regulations on the sponsorship. None among the APL IP shall conduct activities or make any appropriate or inappropriate claims regarding the APL business or the APL Business opportunities that are false or inaccurate within the existing circumstances and vast context. This includes without limitations:

6.3.1. APL IP shall share information only about average current income, earnings, sales performance or interest rates published by the APL Company.

6.3.2. APL IP shall use only APL official printed materials or APL training materials accepted by the APL company.

6.3.3. APL IP shall not claim that potential tax remissions are the main reason to become an APL IP.

6.3.4. APL IP shall not claim that the APL Business is an opportunity to “become rich and wealthy easily and quickly”, to succeed within minimum time period or without any efforts or time.

6.3.5. APL IP shall not make a false presentation of the relationship between the APL Company and its divisions.

6.4. Exclusive rights to operate on a certain territories. An APL IP does not have the right to claim that there are exclusive rights to operate on a certain territories.

SECTION 7: USE OF APL INTELLECTUAL PROPERTY

7.1. APL IP shall use only trademarks and other intellectual property or confidential information that is owned or certificated to be owned by the APL Company in compliance with the regulations, terms and procedures described in the APL IP Agreement, the APL Business rules and the APL Policies.

7.1.1. The APL Company is the grantee of license of certain trademarks, for example, logos, service trademarks and other intellectual and manufacturing property, including the name APL, APLGO and other type of trademarks, company names and service marks used regarding the APL products and services, including different types of labels.

7.1.2. APL IP can use the intellectual property that is owned or certificated to be owned by the APL Company after receiving prior written consent from the APL Company and this use must be in compliance with all the regulations of such use, unless this Agreement states otherwise.

7.2. Business cards. An APL IP who conducts his or her activities in full compliance with the APL Business rules and regulations of this APL IP Agreement, has the right to use the company name APL on their business cards (except for APL™ logo or other trademarks, company names or service trademarks owned or certified to be owned by the APL Company) providing that the name is used in one of the following ways (no deviations from this example permitted): (First name, Last Name) APL Independent Partner, (First name, Last Name) APL Independent entrepreneur, APL products and services distribution.

7.3. Promotional printed materials, stationery, gifts etc. An APL IP has no right to manufacture or get in any other way any types of goods with APL logo or trademarks, company names or service trademarks owned or licensed to be owned by the APL Company, except from the APL Company.

7.4. APL IP advertisement. An APL IP can use advertising media to present the APL Company and promote its products or business opportunities with prior consent from the APL Company. In order to do so, an APL IP must provide the APL Company with a written offer that includes a copy of the advertisement and other information regarding advertisement media minimum 30 days prior to the start of the advertising. The APL Company has the right to reject any offer of advertising at its sole discretion.

SECTION 8: DEATH OF THE APL IP AND SUCCESSION OF THE APL BUSINESS

The APL Company enters into contractual relationships with a particular APL IP because of his or her personal traits. Considering this, the agreement between an APL IP and the APL Company is made about delivery of service from a particular individual. In case of resignation from the business dealing made by the first applicant, the APL Business shall be transferred to the second applicant stated in the agreement. Exclusions can be made only if such transfer contravenes the inheritance legislation or the other procedure of inheritance is described in the will. If there is no second applicant, the APL Business can be inherited in compliance with the will or inheritance contract, or it can be inherited by the heir or the recipient if the APL Company made a decision of transferring the Agreement to the heir or the recipient. The APL Company recommends an APL IP consult with legal experts in order to ensure that their APL Business is transferred to the heirs or legal successor of their choice. The heirs or legal successors shall accept all the responsibilities and liabilities of the devisor, including benefits payment and/or other types of payments given in compliance with the APL Marketing plan. In case of the death of an APL IP without the will, the relevant inheritance legislation must be applied for procedure of business succession.

SECTION 9: VIOLATION OF THE REGULATIONS OF THE AGREEMENT: SANCTIONS, PROCEDURES.

9.1. Procedures.

9.1.1. Fact finding. If the APL Company suspects violation or chance of violation of the APL IP Agreement, or there is a threat of violation, the APL Company has the right to conduct a fact finding regarding activities of a particular APL IP. The APL Company can investigate in its own initiative or if it is requested by other APL IP by a written complaint in compliance with the Article 9.1.2 and the APL Business Rules to the APL Company.

9.1.2. APL IP complaints. If a particular APL IP suspects that other APL IP has violated the APL Business rules and the APL Policies and he or she knows details of actions that led to this violation, this particular APL IP shall inform the APL Company in written form about this violation providing all the known facts.

9.1.2.1. After receiving the complaint, the APL Company shall contact the APL IP under question and demand from him or her a comment about the situation. Notification about the complaint or a copy of the complaint will be also sent to the sponsor of higher level of this APL IP who is suspected to have committed infringement.

9.1.2.2. If the information provided in the complaint or the comment on it is found to be insufficient, the APL Company might ask the parties to provide more information.

9.1.2.3 On the ground of provided information, the APL Company shall decide whether the violation of the APL Business rules, the provisions of the APL Policies or the APL IP Agreement has been committed or not, and shall take corresponding measures.

9.1.3. An APL IP shall receive a notification by any legitimate way (via post, fax or e-mail using APL database regarding this APL IP).

9.1.4. The notification will include quotes from the APL Business rules or provisions of the APL IP Agreement that have been violated by an APL IP, as well as the date when appropriate measures are to take effect.

9.1.5. Liability waiver. An APL IP rejects his or her right to suit or complain against the APL Company regarding or resulting from any measures taken by the APL Company in compliance with the APL IP Agreement. An APL IP in respect of which appropriate measures have been taken as a result of his or her violation of the APL Business rules and the APL Policies, or the APL IP Agreement, shall not file a suit or complaints against the APL Company regarding these measures.

SECTION 10: FULFILLING REQUIREMENTS

If an APL IP violates the terms and conditions of the APL IP Agreement, the APL Company can take measures in order to eliminate the violation, compensate for harm and to prevent the same violations in future.

10.1. Failure to comply with the requirements.

10.1.1. The APL Company can terminate the Agreement in case of serious violation of the APL Business rules following procedures described in the APL Business rules and providing that all the efforts to gain understanding failed. After the termination of the Agreement the APL IP shall do the following including without limitations:

- return all the APL products and services that he or she has back to the APL Company by request from the APL Company and in her or his initiative;

- stop using all the trademarks, company names, logos and other intellectual property owned or certificated to be owned by the APL Company;

- stop calling yourself an APL IP;

- stop participating in any APL IP activities.

After the termination of the APL IP Agreement, the ex APL IP becomes able to use means of legal defense.

10.1.4. AGREEMENT SUSPENSION

The APL Company has the right to take measures to suspend all or some rights of a APL IP within the APL IP Agreement, including without limitations:

- suspension of sponsorship (sponsor support, meetings aimed to attract new APL IP, training sessions, home presentations etc);

- suspension of access to APL information;

- suspension of invitations to training sessions, trips and other events organized by the APL Company;

- temporary ban for APL products and services orders.

The APL Company shall notify this APL IP about its decision on the duration of the suspension. Suspension of an APL IP may last up to the moment when the APL Company is completely satisfied with this APL IP behavior.

10.1.5. TERMINATION OF BONUS PAYMENTS/RETURN OF THE PAYMENTS

An APL IP shall return benefit payments received form the APL Company, or the APL Company can withhold benefit payments that have not been paid yet, as a compensation for the violation. The APL Company reserves the right to withhold benefit payments and to give rewards or recognitions in its sole discretion.

10.1.6. QUALIFICATION SUSPENSION / LOSS

The APL Company has the right to suspend or annul any qualification, as well as to demand to return any symbols of qualification, including without limitation badges, certificates etc.

10.1.7. ADMISSION OF VIOLATION AND LIABILITY / ANNOUNCEMENT ABOUT VIOLATION TERMINATION

An APL IP shall admit the committed violation and shall provide a relevant written commitment that such a violation of the APL IP Agreement will never be committed again. The APL Company might provide such an APL IP with period of time that he or she can use to recover. The APL Company may also ask this APL IP to provide relevant written commitment stating that such a violation of the APL IP Agreement will never be committed again.

10.1.8. REJECTION OF REGISTRATION OF THE APL IP AGREEMENT

The APL Company reserves the right to sign or not to sign the Agreement with any APL IP.

10.1.9. LEGAL ARRANGEMENTS

The APL Company has the right to use any means of legal defense against an APL IP, to open a case of civil or criminal liability, to provide relevant authorities with necessary information, such as complaints and reports, or to use any other means of legal defense that are at the APL Company’s disposal or stipulated by the current legislation.

10.1.10. TAKING ADDITIONAL MEASURES

The APL Company reserves the right to decide in its own discretion what kind of sanctions or measures above mentioned shall be taken in this or that case, or what other legitimate actions should be applied in order to avoid the termination of the Agreement.

10.2. Repeated breach. The APL IP must rectify the violation as soon as he or she receives a notification about this violation from the APL Company.

10.3. Refusal. If the APL Company did not apply any actions after a potential violation, it does not mean that the APL Company will not use its right to prove this violation in the future. If an APL IP did not make any actions after the proved fact of the violation, it does not mean that the APL Company refuses its right to use any means of legal defense in compliance with the current legislation.

SECTION 11: DISCIPLINARY COMMETTEE

11. DISCIPLINARY COMMETTEE.

An inside committee provides an inside revision of a decision about termination or renewal of the Agreement, withdrawal of the sponsor status and the APL IP Agreement suspension.

11.1. Suspension. If the Disciplinary committee is revising a decision previously made by the APL Company, the decision made by the Company is in effect up to the moment when the Disciplinary committee arrives to a final decision. During the revision:

11.1.1. An APL IP in question looses the right to continue operating as an APL IP.

11.1.2 This APL IP looses the right to call herself or himself an APL IP.

11.1.3. All the benefit payments and other payments, as well as discounts, shall be suspended by the APL Company.

11.1.4. As soon as the Disciplinary committee makes the decision, the APL Company decides whether to transfer the monthly bonus payment that cumulated during the revision to this APL IP or not, as well as the one-off payment and other rewards that the APL Company gives to APL IP on its own initiative. The APL Company reserves the right to close any qualification in its sole discretion.

11.1.5. The APL Company shall not invite the APL IP to the business training sessions and other events organized by the Company even if the qualification that gives the right to the APL IP to be invited to such an event has been given before the suspension of the APL IP Agreement.

11.1.6. If the Disciplinary Committee delivers a judgment in favor of the APL IP, the APL Company shall restore all the rights and privileges of this APL IP, and provide with relevant recognition and all the rewards, bonuses and payments that have been suspended.

11.1.7. If the Disciplinary Committee does not deliver a judgment in favor of the APL IP, the APL Company shall dispose the suspended funds in its sole discretion.

11.1.8. The parties concerned have the right to provide additional proofs if the Committee demands so or on these parties’ initiative. The Disciplinary committee shall decide whether the proofs are relevant to the matter or not based on their importance.

11.2. Final decision by the Disciplinary committee.

11.2.1. All the parties concerned shall be properly informed about the final decision made by the Disciplinary committee.

11.2.2. The Disciplinary Committee has the right to support, reject or change the decision made by the APL Company.

11.2.3. If the Disciplinary committee decides to support the termination of the APL IP Agreement and annulment of the business, this decision shall be confirmed by the APL Company, and then the APL IP shall be informed about the following:

a) decision on the annulment of her or his business has been confirmed and is considered to be in effect since the date previously announced by the APL Company to the APL IP,

b) the decision on annulment of the business has been made by the Disciplinary Committee. In this case the APL IP business is considered to be annulled from the moment when the Disciplinary Committee made the decision, and the APL Company shall announce this information to the APL IP.

11.2.4. If the Disciplinary committee decides to take other measures concerning the APL IP under question (without termination of the business):

a) the APL Company shall inform this APL IP by a notice containing the information concerning the measures taken and the time limit for their performance by the APL IP, or containing the information concerning the exact date when the APL Company shall take the measures concerning the APL IP;

b) the APL Company shall take necessary measures to provide compliance with the decision made by the Disciplinary committee.

11.2.5. The decision made by the Disciplinary committee shall not impose any obligations on the APL Company and/or its divisions.

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