PM-International AG (PM) Distributor Policy
1. The legal position of the Distributor
1.1 A Distributor is a self-employed person who earns entrepreneurial income from the distribution of PM Products.
1.2 Distributors' distribution activities include the sale of PM products on their own behalf directly to end users and to end users who purchase
PM products directly from PM (Customer Direct Program) and refer to PM Distributor as a Sponsor.
1.3 Forglamazos are not obliged to be active and are free to determine the place, type, time and extent of their activities, at their own risk
and without instructions. The Forglamazos are responsible for all costs associated with their business activities. Each is responsible as an
entrepreneur for meeting all legal obligations arising from the business (company registration, income tax, sales tax, social security, competition
law).
1.4 Forglamazos are conducting business o n a part-time basis; anyone who notices that this is not the case should notify the PM of this fact.
2. Start and end of Distributor status
2.1 Distributor status requires a complete, legibly completed application from the Distributor; it becomes a legal agreement once the application
is accepted by the PM. The Distributor is not legally required to receive the acceptance, but the PM will promptly notify the Distributor of the
acceptance of the application.
2.2 Within 30 days of receipt of the information on the acceptance of the application, the Distributor may withdraw its contract with PM without
giving any reason by means of a written statement. After the withdrawal, all PM products purchased by the Distributor may be returned and PM
will refund the full amount.
2.3 Distributor status is for an indefinite period and can normally be terminated at any time, subject to the legal notice period. The right to
extraordinary notice is not affected for important reasons. If the Distributor breaches its obligations under clauses 4.1, 4.2 and 5.2 of the Distributor
Rules, the PM will consider this to be good cause for termination.
2.4 In the event of death, the Distributor status may be transferred to a child or parent if the transfer is requested in writing with the consent of all heirs, the heir agrees to the
relevant version of the PM Distributor Rules and the PM agrees.
3. Distributor's rights to the bonus
3.1 The Distributor is entitled to a bonus for referring end users participating in the "Customer Direct Program" and for introducing, training
and supporting new Distributors as a Sponsor. The requirements and amounts for the bonus are set forth in the then-current PM Marketing
Plan; PM reserves the right to apply the then-current Marketing Plan in the same manner to all Distributors.
3.2 The PM will pay the bonuses on a monthly basis. The sales tax will only be paid if the Distributor has previously explicitly informed the PM of the
right to prior notification of the sales tax, including written information of its tax number and the tax office responsible. The bonus shall be paid no later
than the 20th day of the following month. If the monthly statement is less than €5 net, no payment will be made and the right to one will be lost.
4. Distributor's distribution activity elsewhere
4.1 Distributor is not allowed to carry out activities for PM's competitors without PM's prior written declaration. A competitor of PM is any
company that offers products or services through personal direct marketing or through a network marketing system, and any company, regardless
of the means of distribution, whose products are wholly or partly in competition with PM products.
4.2 The Distributor shall keep all other permitted distribution activities separate from the PM and the PM Products. It is not allowed to draw
attention to PM's activities or status as a Distributor, or to offer the other company's products and services together with PM's products, or in any
way to induce other Distributors of PM to purchase goods or services from the other company or to become active members of the other
company in addition to or instead of PM.
5. Buying and selling PM products
5.1 Distributor orders and receives PM Products exclusively and directly from PM. Purchases of PM Products from other Distributors are not
permitted.
5.2 The Distributor sells PM Products to end users only through personal direct distribution. Sales through retail outlets, markets, fairs,
internet auctions and similar sales events are not permitted.
5.3 The Distributor is obliged to take back PM products sold to end-users within 30 days of delivery; the buyer does not need to give a specific reason,
it is sufficient if he simply does not like the products (PM satisfaction guarantee). After taking back the goods, the Distributor allows the buyer to
choose between exchange, credit or credit of the purchase price paid.
5.4 The Distributor is free to decide whether and how much to buy from the PM. There is no minimum purchase obligation.
5.5 All orders of the Distributor will be processed according to the PM price list valid at the time of ordering. Prices are generally understood to
be exclusive of sales tax, shipping and handling charges, if applicable. Payment must be verified prior to shipment of products. This can be done
by direct debit from a bank account, payment by credit card, cash on delivery.
6. Additional obligations of the Distributor / Contractual penalties
6.1 The Distributor shall always act as an independent and responsible contractor and shall avoid any appearance of being an
employee of the PM or having the authority to make statements on behalf of the PM.
6.2 Because PM is a member of national and international direct marketing associations, Distributors must strictly adhere to the standards of
conduct applicable to members of these associations and to Distributor representatives; PM will promptly inform Distributors of the appropriate
standards of conduct to be observed.
6.3 Everything that the Distributor says about PM and PM products must comply with PM's specifications, especially in the product catalogue,
product labels and other product information. Under no circumstances shall Distributor attribute therapeutic or curative properties to PM
Products.
6.4 Distributor shall not make any changes to the PM Products or their packaging, nor shall any third party be permitted to make such changes.
A label bearing the Distributor's address is permitted, provided that it does not conceal any advertising or product information.
6.5 Distributor must use only product information, sales materials and sales aids issued by PM to
For the purpose of advertising PM and distributing PM Products, and where the advertising and distribution i s d o n e via the Internet, only the online
store provided to PM Distributors may be used for this purpose. Distributor s h a l l not refer to PM or PM Products or use PM's trademarks or other
proprietary patents in its own promotional materials or on its own web interfaces.
6.6 For each breach of the obligations in clauses 4.1, 4.2, 5.1, 5.2, 6.3, 6.4 and 6.5 of the Distributor Rules, the Distributor shall pay a cont ractua l
penalty, the amount of which shall be determined by the PM in each individual case, taking into account the importance of the legal value and the
income of the Distributor, with a minimum contractual penalty of €500 (or equivalent currency in use in the country of the Team Partner)
and a maximum of €10,000. Claims for contractual penalties are without prejudice to further claims, in particular for warrants and
damages.
6.7 All Distributors must acknowledge and comply with binding legislation and generally accepted codes of conduct for direct marketing, both
in general advertising activities and when acquiring new Distributors. This leads in particular to an explicit prohibition of any form of "spam"
and of systematic bounty hunting of other companies' distribution partners. Violations of this will be strictly pursued by PM, up to and
including termination of the partnership. PM also lays down general rules of conduct which must be strictly observed at all times. This is
available at www.pm-international.com.
7. Protection of lines
7.1 The PM-International principle is to preserve and protect the sponsor line. A Distributor who has terminated his/her Distributor membership may
o n l y re-register as a Distributor if he/she submits a new application and is (a) sponsored by both himself/herself and his/her former sponsor or (b)
at least 12 months have elapsed since the termination. A Distributor who has been removed as an inactive Business Partner is free to reregister
(without 12 months of personal volume) with a new application, i.e. not only under the former sponsor but under any other
sponsor.
7.2 The same line protection also applies to customers participating in the Customer Direct Program (see section 7.1).
7.3 Spouses can each have a Distributor number. Ensure that one of the spouses is registered only in the front line of the other spouse. Also,
children of business age (within the parents' organization) can only be registered in their parents' or one parent's organization. Siblings,
parents, grandparents and grandchildren can also be registered in the front line.
8. Connections / Changes
8.1 The contractual relationship between the parties is governed by the law of the Federal Republic of Germany.
8.2 In disputes, the court of Speyer (Germany) shall be the competent court if the Distributor is neither domiciled nor normally resident i n Germany
at the time of the conclusion of the contract or the institution of legal proceedings; the right of one party to the contract to bring a claim against
another party under its jurisdiction shall remain unaffected.
8.3 A written requirement specified in the contract may also be made by fax or e-mail.
8.4 The PM shall notify the Distributor in writing of any change to the Distributor Rules. The amendments shall be deemed to be accepted if
the Distributor does not contest them in writing within three weeks of the notification of the amendment. The PM shall explicitly state this in the
notification.
8.5 I agree that the PM is conducting a credit rating on me. I agree that personal data that may affect our business relationship will be collected,
stored, processed and used by PM through PM's automated and other processes.
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