Distributor Standards and Statement of Policies and Procedures

Introduction

Distributor Standards and Statement of Policies and Procedures – a general term for all basic and key rules to be followed while running a business, which are established by Siberian Wellness and include:

  • Code of Ethics;
  • Rules of Cooperation with the Company.

All Company Distributors are obliged to follow Distributor Standards and Statement of Policies and Procedures of the Company. The Company reserves the right to establish and bring into force other rules, standards and inform Distributors about them via official sources of the Company. This information is also duplicated on the Company's website.

Terms and definitions

  • Points – a fixed numerical value given individually to each Company product.
  • Company – a holder of exclusive rights to the “Сибирское здоровье” and “Siberian Wellness” trademarks.
  • Distributor – an individual who buys products with “Сибирское здоровье”, “Siberian Wellness” trademarks and receives bonuses for his/her purchases; recommends these products to other people and receives bonuses for their purchases; informs other people about assortment, recommended use and effects of products; recommends other people to become Distiributors.
  • Сибирское здоровье” Brand, Brand – a set of “Сибирское здоровье”, “Siberian Wellness” trademarks, visual style, rules and methods of business activity, access to which is provided by the Company in order to increase sales of products with “Сибирское здоровье”, “Siberian Wellness” trademarks.
  • BT 300, BT 500, BT 1000, BT 2500, BT 5000, BT 10 000, BUSINESS PROFI – terms that indicate the status of a Distributor achieved during his/her business career.
    BUSINESS LEADER, SAPPHIRE BUSINESS LEADER, RUBY BUSINESS LEADER and higher – terms that indicate the status of a Distributor possessing large organizations, as well as his/her status in business career.
  • Mentors’ line – a multilevel organization, consisting of Mentors, registered one after another.
  • Brand Literature and Brand Training Materials – official printed materials, audio-, video-, multimedia products designed by the Company in order to increase sales of products with “Сибирское здоровье”, “Siberian Wellness” trademarks.
  • Personal purchase – a purchase, registered in the Company's database to an individual number of a Distributor.
  • Personal volume – personal purchases of the Company products made by a Distributor, and registered to his/her individual number.
  • SIBERIAN WELLNESS Store, SW Store – a specialized center intended as a place to sell products with “Сибирское здоровье”, “Siberian Wellness” trademarks, as well as training literature and other printed products of the brand; to serve Clients and Distributors; to hold presentations, master classes, meetings or other events fostering Distributors’ business support or promotion of the products with “Сибирское здоровье”, “Siberian Wellness” trademarks; to provide information about products and promotions to retail Clients or business information to Distributors.
  • Mentor – a Distributor who invited an Applicant (Distributor) to cooperate with the Company, who is registered with the Company as a Mentor and who provides information support to the enrolled individuals, as well as trains, enlightens and mentors them.
  • Compensation plan – Regulation on remuneration and bonuses of Distributors, which establishes the grounds, rates and procedure for remuneration payment to Distributors who engage in business activity, as well as types, rates, procedure for crediting and providing incentive bonuses to Distributors.
  • Sales organization, Organization – a set of Distributors attracted directly or indirectly by a Distributor to purchase products with “Сибирское здоровье”, “Siberian Wellness” trademarks. The Organization of one Distributor may be a part of the Organization of another Distributor.
  • Distributor's first line – Distributors whose individual numbers are registered directly under the individual number of this Distributor.
  • Company's website – Company's website on the Internet with the domain name – https://siberianhealth.com. It contains official information about products with “Сибирское здоровье”, “Siberian Wellness” trademarks, business, events and Brand Events.
  • Goods, Products, Product – biologically active food supplements, as well as food, cosmetic, perfumery products and other groups of goods products with “Сибирское здоровье”, “Siberian Wellness” trademarks.
  • Terms of Confidentiality – rules established by the Company in regard to the collection, storage, use, distribution, recording and transfer of the personal information, contained in the database and accounting system of the Company, including Company liabilities to protect the personal data and observe the rights of those persons, who provided this data to the Company.

Code of Ethics

1. Distributors represent the Company. Distributor's image, his/her professionalism, speech, appearance, ethics shall comply with the high requirements of the Company.
2. A Distributor shall be familiar with Distributor Standards and Statement of Policies and Procedures and follow them always and everywhere, in word and in deed.
3. A Distributor is perfectly familiar with the products, uses it, and is able to persuasively recommend them to others through personal example.
4. A Distributor presents products and business of the Company in strict accordance with the description given in the official documents of the Company. No Distributor shall give false or misleading information about the effectiveness of products and potential incomes.
5. A Distributor shall not pressure Clients, Distributors, respecting their right to make decisions on their own behalf about the value of provided information and cooperation with the Company.
6. A Distributor conducts his/her business to gain profit in such a way that those people with whom he/she cooperates can also make a profit.
7. A Distributor carefully and good-naturedly treats all Distributors, regardless of their status and regardless of whether they are members of his/her Organization or not.
8. A Distributor strictly follows the rule of organization stability maintenance – does not carry out double registration within organization.
9. As a Mentor, a Distributor guarantees to provide training and support to his/her Organization and undertakes in all manners to cultivate business culture and better understanding of the Code of Ethics, as an important law of successful business development with the Company, among Distributors of his/her line.
10. A Distributor recognizes that his/her violation of the Code of Ethics and Rules of Cooperation may lead to termination of registration with the Company.

Rules of Cooperation with the Company

1. Registration with the Company

1.1. Any legally capable person who reached the age of majority (hereafter – Applicant) may become a Distributor.
1.2. Registration with the Company – a voluntary act, that can be carried out by an Applicant only on his/her own upon applying for Distributor status.
1.2.1. After an Applicant gets registered in the Company's database, he/she gets an individual registration number, which can be used by a Distributor to access the Personal Account on the Company's Website, and on which he/she gets points for personal purchases of the products and purchases made by other persons under his/her recommendation.
1.3. Status.
1.3.1. An Applicant chooses the status of a Distributor and applies for a respective status.
1.3.2. A Distributor's status is maintained only if a Distributor fulfills a Personal Volume of 100 points at least once in four consecutive months.
1.4. Distributor's warranties.
1.4.1. Any Applicant registering with the Company undertakes the certain obligations, confirms and warrants that during registration with the Company and within the period of its validity he/she:
‒ has the right to register with the Company in accordance with all Company conditions and the laws applicable within the country of Applicant's residence;
‒ does not conduct activity which is inconsistent with the Distributor Standards and Statement of Policies and Procedures;
‒ does not inflict any material damage on the Company;
‒ was not previously terminated due to violation of the Distributor Standards and Statement of Policies and Procedures;
‒ specified the reliable personal data in the Registration form.
1.5. Registration of Applicant in Company's database.
1.5.1. The Company registers an Applicant based on a referral from the existing Mentor, and provided that an Applicant has filled out the section about the Mentor in the Registration form or has indicated the Mentor in the online application form.
1.5.2. If an Applicant gets registered directly, without a referral, he/she can choose a Mentor from the Mentors database or be registered without specifying a Mentor.
1.5.3. Registration Form must be completed accurately. If an Applicant failed to accurately complete the form and, as a result, he or she is assigned to other Mentor's organization or within a different period, the reassessment of his/her commission is not made. An Applicant shall inform the Company about the mistakes and submit a request for the Registration Form correction in accordance with Clause 1.7.
1.5.4. At the time of registration, an Applicant shall not have another valid registration number with the Company, otherwise, the last registration is considered invalid, and the Distributor is subject to the sanctions prescribed by Clause 5.
1.5.5. The Company recommends an Applicant during registration to indicate as a Mentor the name of the person who has first invited him/her to join the Company and told about the Company's opportunities. However, taking into account the significance of the Mentor's role in the direct sales business, before the registration is completed the right of final choice is reserved by an Applicant.
1.5.6. In cases when the Applicant's spouse is already registered with the Company, a Mentor shall be chosen according to Clause 2.
1.5.7. The owner and employees of a private enterprise can be registered only within the Organization of the Business Leader, who gave reference to open this private enterprise. If clause 1.5.7 is violated, the Company has the right to transfer a Distributor with his/her team to the Business Leader’s Organization, who had gave reference to open this private enterprise.
1.6. Denial of Registration.
1.6.1. The Company reserves the right to refuse to register or re-register an Applicant.
1.6.2. Online registration is possible only if an Applicant has a personal mobile number issued in accordance with the laws of the country where the registration is being completed.
1.6.3. If an Applicant does not have a personal mobile number, he/she can submit the online registration form available on the Company's official website in other countries.
1.7. Registration Form correction.
1.7.1. If a Distributor made a mistake during registration by specifying a wrong Mentor, the former may request for Registration Form correction within 30 (thirty) days from the date of registration with the Company, attaching the written consent of the current Mentor. The Company will introduce amendments on the basis of the provided documents.
1.7.2. If a mistake, made during the registration, is detected on the expiry of 30 (thirty) days from the date of Distributor registration, it shall be corrected according to Clause 3.1.
1.7.3. The request for Registration Form correction and the Mentor's consent can be handed over to the Company personally, sent by postal service or via e-mail to the address: registrator@sibvaleo.com.

2. Procedure for spouses’ registration and activity

2.1. Procedure for spouses’ registration and activity
2.1.1. Lawfully married spouses can get registered either under one registration number or under separate registration numbers. In this case, the Mentor in this couple is the spouse who first received the registration number.
2.1.2. A spouse, who has received the registration number, is responsible for any activity conducted by the spouse, who does not have a separate registration number, that is inconsistent with the Distributor Standards and Statement of Policies and Procedures.
2.1.3. The spouses are not allowed to have different Mentors or conduct activity in different organizations.
2.1.4. If two Distributors, each of whom runs a business with the Company in different organizations, marry, then they have the right either to keep existing registration number and Organization or to continue their activity within the same Organization, but in this case, the previous Organization remains in the previous Mentors' Line.
2.1.5. In case of divorce, only that spouse who owns the Registration number shall be deemed a Company's Distributor and, accordingly, only he/she is entitled to get remuneration and bonuses, business tools and rewards. Any agreements between the divorcing spouses regarding earnings from business with the Company shall be settled by the spouses and confirmed by the Company in written form. Any other agreements between divorcing spouses concerning the separation of bonuses, remunerations, earnings from business with the Company, rewards or business tools are considered invalid in the absence of the Company's written consent.
2.1.6. If a person divorces a Company's Distributor, the second spouse has the right to get registered and receive a new registration number under the same Mentor or with another Organization at any time after divorcement.
2.1.7. If a lawfully married couple is registered under the same Registration number, then they are paid bonuses and remunerations in a single size, business status is assigned to both spouses simultaneously, whereas the honorable distinctions are issued to both, and business tools and awards are also given out to both spouses. A Distributor, qualified as the Business Leader, submits to the Company a recommendation for assigning the status to the Distributor’s spouse of his/her Organization, thereby confirming his/her activity.
2.1.8. If spouses are registered under separate registration numbers, the results of each spouse's activity are counted separately.

3. Change of cooperation terms and termination of cooperation with the Company

3.1. Applying for Change of Mentor.
3.1.1. A Distributor, who has expressed a desire to change his/her Mentor, shall submit a written application to the Company with the following documents attached:
– written consents of all up-line Mentors of his/her Organization up to Business Leader inclusive,
– written consent of a Ruby Business Leader,
– written consent of a new Mentor.
3.1.2. If a Distributor changes his/her Mentor, the entire Organization created by this Distributor, remains within the previous Organization of the first Mentor.
3.1.3. The decision concerning the change of a Mentor is made by the Company on a case-by-case basis.
3.1.4. If the Company considers the presented reasons insufficient, the Company is entitled to deny a Distributor's request to change a Mentor in a unilateral manner.
3.2. Organization without Mentor.
In particular cases when Distributors and their Organizations were remained left without a Mentor, the Company is entitled to assign them to other Mentors upon consent of both parties and under special conditions.
3.3. Termination of cooperation with the Company.
Grounds for termination of cooperation with the Company:
3.3.1. Cancellation of registration.
Registration is automatically canceled if a Distributor does not purchase the Products for four consecutive months since the registration month. After registration is canceled, a Distributor is allowed to re-register at any time with a desired Organization and Mentor.
3.3.1.1. If a Distributor made purchases at least once during the first four months, including the registration month, further registration is canceled automatically if he/she doesn’t make purchases using his/her individual number for 6 consecutive months.
3.3.2. Termination of registration initiated by a Distributor.
3.3.2.1. A Distributor is entitled to terminate the registration at any time by submitting a request to the Company.
3.3.2.2. The Company reviews the application within 10 working days; upon expiration of this period, the registration of the Distributor is terminated. If such a request is withdrawn before the indicated period, it is considered invalid and the Agreement remains effective.
3.3.3. Termination of registration initiated by the Company.
3.3.3.1. The Company has the right, on its own initiative, to terminate the Distributor's registration without providing justification.
3.3.3.2. In such cases the Company notifies a Distributor, his/her Mentor and Organization's Leader about the termination of Distributor's registration by e-mail.
3.3.3.3. If the registration is terminated on the initiative of the Company, a Distributor under any name is not allowed to demand any payments and compensations from the Company.
3.4. Termination of cooperation with the Company.
3.4.1. Upon termination of cooperation with the Company for whatever reason, a Distributorshall:
– stop presenting himself/herself as a Company Distributor;
– stop any activity as a Distributor prescribed by the Compensation Plan and the Distributor Standards and Statement of Policies and Procedures;
– stop using any trademarks, trade names, brand names, emblems, logos and other intellectual property items of the Company.
3.4.1.1. After the cooperation with the Company is terminated for whatever reason, all bonuses accumulated by a Distributor on his/her registration number are annulled.
3.4.2. A Distributor who has terminated cooperation with the Company has the right to buy the Products.
3.4.3. If cooperation with the Company is terminated, the Distributor's Organization is transferred to an upline Mentor.
3.4.3.1. If the cooperation with the Company is terminated by a Distributor qualified as Business Team 10 000 and higher, his/her Organization is transferred to an up-line Mentor. The fact of the Organization transfer towards a Mentor is taken into account for the calculation of his/her remuneration, but not for the assignment of qualification status, as well as Platinum and Diamond bonuses.
3.4.4. After the cooperation with the Company is terminated, the Company blocks the Distributor's access to his/her Personal Account on the Company's Website.
3.5. Resumption of cooperation with the Company.
3.5.1. A Distributor, who has terminated cooperation with the Company in accordance with Clause 3.3.1, is entitled to re-register with the Company and get a new registration number at any time, in any status.
3.5.2. A Distributor who has terminated cooperation with the Company in accordance with Clauses 3.3.2 (on his/her own initiative) or 3.3.3 (on the initiative of the Company) is entitled to register with the Company in any status and in any Organization after 6 months from the month of the termination of cooperation under the previous Registration number.
3.5.2.1. The spouse of a Distributor who has terminated cooperation with the Company in accordance with Clauses 3.3.2 (on his/her own initiative) or 3.3.3 (on the initiative of the Company) is entitled to register with the Company in any status and in any Organization after 6 months from the month of the termination of cooperation under the previous Registration number.
3.5.3. The Company reserves the right to deny the re-registration of a Distributor, who had terminated cooperation with the Company in accordance with Clauses 3.3.2, 3.3.3, or to increase the period within which the registration is not allowed.
3.5.4. If a Distributor resumes his/her cooperation with the Company, he/she doesn't get back earlier created Organization.
3.5.5. If a Distributor resumes his/her cooperation with the Company, the bonuses are accumulated on his/her registration number from scratch.

4. Family registration number and inheritance of rights

4.1. Family Registration number.
4.1.1. A Distributor is entitled to include his/her spouse or one close relative (parents, children, siblings) into his/her registration number.
4.1.2. A Distributor is obliged to submit the following documents with the information about his/her spouse or relative to the Company:
1) a statement of the spouse's/relative's intention to cooperate with the Company;
2) a copy of the passport;
3) a copy of a marriage certificate (for spouses);
4) a copy of the document confirming the relationship.
4.1.3. The Company is obliged to consider the Distributor's statement, who wants to get the Family Registration number, within 5 (five) working days and inform the Distributor about the results of consideration in written form. The Company is entitled to satisfy the Distributor's statement or refuse to register the Family Registration number if it considers the given reasons to be insufficient.
4.2. Requirements for a spouse/relative added to the Family Registration number.
4.2.1. A spouse/relative shall have the required knowledge about the Siberian Wellness brand, key business technologies of the Company, the Compensation Plan, Incentive Programs and Distributor Standards and Statement of Policies and Procedures.
4.2.2. A spouse/relative undertakes to accept the responsibility for the management, motivation and training of the Distributor's Organization.
4.2.3. A spouse/relative undertakes to maintain and increase the sales volume of the Distributor's Organization.
4.2.4. A spouse/relative shall indicate in the statement that he/she accepts all the conditions specified in Clauses 4.2.1–4.2.3.
4.3. Commissions and bonuses accumulated on the Family Registration number are credited to the Distributor who was firstly registered with the Company.
All bonuses, commissions are paid once and one amount for both members.
4.4. Honorable distinctions awarded to a Distributor, as well as the ranks achieved by the Distributor before the Family Registration number was registered, are not conferred on the spouse/relative.
Later on, upon reaching subsequent statuses in a business career, all the titles and statuses are conferred on both members of the Family Registration number. A qualification award is given out one for two, while qualification pins are given out to both members.
4.5. In the event of a dispute between relatives or divorce of spouses, only the spouse/relative who had registered with the Company is deemed by the Company as a Distributor and, accordingly, only he/she is eligible to get bonuses, commissions, business tools and awards. Any agreements between spouses/relatives regarding earnings from business with the Company shall be settled by the members of the Family Registration number themselves and confirmed by the Company in written form. Any other agreements concerning the separation of bonuses, commissions, earnings from business with the Company, awards or business tools are not allowed without the Company's written consent.
4.6. At any time, the spouse/relative added to the Family Registration number can be excluded on his/her own initiative, on the Company's initiative or on the initiative of a Distributor registered with the Company.
4.7. A Distributor who has registered the Family Registration number shall not be entitled to assign his/her rights to the spouse/relative.
4.8. The registration under Family Registration number can be terminated only by a Distributor who originally registered the registration number in the Company.
4.9. Inheritance of rights.
4.9.1. In the event of the death of a Distributor, his/her property rights, associated with his/her activity as a Distributor, shall be transferred under the procedure of inheritance.
4.9.2. The period for the property rights transfer to heirs – two months from the date of a Distributor's death. For this purpose, Distributor’s heirs shall submit the following documents to the Company:
1) an heir’s statement of intent to cooperate with the Company, certified by the Mentor and first up-line Mentor in the status of Business Leader or higher;
2) a copy of the heir’s passport;
3) a copy of the Distributor’s decease certificate;
4) a copy of the document confirming the relationship of the heir and the Distributor.
4.9.3. If a heir refuses to inherit the Distributor's property rights or fails to accept the inheritance of the deceased Distributor within 2 (two) months, the Distributor's registration is terminated. An Organization created by the deceased Distributor is transferred to his/her immediate Mentor.
4.9.4. A successor, who is not a Distributor's Distributor, shall get registered with the Company. In this case, the successor receives the rights to the Organization. Distributor's registration number under which the rights are inherited, is terminated.
4.9.5. A successor gains the right to receive new qualifications awards and honorable distinctions after one calendar year from the date of the Distributor's rights transfer.
This time limit is introduced in order to enable a successor to fully develop competencies associated with his/her status, as well as confirm that he/she has exercised his/her personal influence on the growth and development of the Organization, rather than has exploited preceding Distributor's achievements.
4.9.6. The Company doesn't recognize the first status and doesn't award honorable distinctions achieved by a successor in a business career within 12 (twelve) calendar months since the month of the Distributor's rights receipt.
4.9.7. The exception to the rule specified in Clause 4.9.6 is the second and subsequent statuses in a business career achieved by a successor (including within the period of 12 (twelve) calendar months since the month of Distributor's rights receipt).
4.9.8. In the event of inheritance of rights, a higher Mentor in the rank of Business Leader has the right to optimize the transferred Organization in order to develop it and maintain its stability. Optimization can be made solely within the inherited Organization.
4.10. In the event of a Distributor's death, his/her property rights, associated with his/her activity as a Distributor, cannot be inherited.

5. Double registration

5.1. Double registration – when a Distributor undergoes repeated registration while having another valid registration number at hand with indication of a new Mentor, as well as when a Distributor gets registered violating Clause 3.5.2 hereof.
5.2. In addition, double registration means a registration of the spouse of a Distributor with another Organization and another Mentor.
5.3. Double registration is prohibited in the Company.
5.4. Notices concerning double registration fact can be submitted to the Company in written form within 12 (twelve) months since the date of double registration. The Company does not examine applications submitted after the indicated period is expired.
5.5. If the fact of double registration is confirmed:
– the repeated registration is terminated on the Company's initiative;
– an Organization of the person who allowed the double registration is transferred by the Company to his/her previous Mentor;
– the registration number of a spouse and an Organization created by him/her are transferred to the Organization of the earlier registered spouse;
– the direct Mentor, in whose Organization the double registration took place, will be subject to penalties in the amount of double payment credited for the sales volume of a repeatedly registered Distributor and his/her group. The penalty amount is calculated based on the Mentor's commission for the entire last period.
5.6. A Distributor is allowed to have only one Registration number in the Company's database. Upon detection of direct or indirect control over more than one Registration number, as well as falsification and registration using a false name, the Company is entitled to cancel such registration, as well as transfer the created group under the first Registration number in case of double registration.
Registration is considered fictitious if a registered Distributor does not confirm the fact of self-service upon the request of employees from Head Office / Contact Center and does not get in touch by the contacts specified during registration (does not respond to e-mail, call or SMS) at least once within 2 months.
In the case of activities under fictitious numbers (registration of fictitious numbers, transferring points on them in order to participate in bonus and motivational programs of the Company) The Company reserves the right to impose fines or other sanctions, including termination. The Sponsor, in whose team these violations occurred, is excluded from all ratings, Promo, motivational and bonus programs of the Company: Incentive Programs, The Reward Trip Program, Siberian Wellness Car, Leader Promo and bonus programs. Bonuses paid in the form of fines are deducted from subsequent payments on account.
5.7. The Company informs a Violator, his/her Mentor and an Organization’s Leader about its decision in written form.

6. Policy of zero activity in unopened markets

6.1. The Company adheres to the policy of zero activity in the unopened markets.
Unopened market is a country, where the Company has not started its official activity yet. The beginning of the Company's activity is the beginning of sales through a Company's distributor or a private enterprise or through the official E-shop. Any activity in the country is not allowed unless the Company has announced its opening (through the printing materials or on the Company's Website) i.e. the Rules of zero activity are applicable there.
6.2. Rules of a zero activity policy in unopened markets:
6.2.1. If a market is not officially opened, it is forbidden to sell and promote the Company's products there, as well as, to attract other people to cooperate with the Company, including the creation of websites associated with the Company within the Internet space of this country.
6.2.2. It is prohibited to import, sell, and use in otherwise way any Brand Literature and Brand Training Materials unless it is produced at the request of the Company.
6.2.3. It is prohibited to import any Brand Literature and Brand Training materials into an unopened country, regardless of the reason for import. The import of the Products without approval documents, registration, labeling can entail the administrative and criminal prosecution of a Violator and the Company, fines and confiscation of the Products and materials. Such actions negatively affect the image of the Siberian Wellness brand and its Products, as well as diminish the Company's chance to launch official activity in this country.
6.2.4. It is prohibited to advertise products and/or business of the Company in order to attract potential Distributors of an unopened market both on the territory of this market and in the market where the Company runs official business.
6.2.5. It is prohibited to present oneself as a Company's employee. It is prohibited to present oneself as an exclusive representative of the Company in any unopened country.
6.2.6. It is prohibited to carry out "pre-registration" of Candidates in an unopened country. If a Candidate fills in any documents, it does not impose on him/her any obligations.
6.2.7. It is prohibited to invite people, hold meetings (including tete-a-tete ones), conventions associated with the Company business in any unopened country before the date of official activity beginning in this country is announced by the Company.
6.2.8. It is prohibited to create websites on the Internet, including online stores, associated with the Company and intended for an unopened market.
6.2.9. While visiting an unopened country it is prohibited to generate residents' interest in the Company's business and attract them to join in.
6.3. If the Company gets verified information about prohibited activity conducted in an unopened market, the Company is entitled to apply administrative measures against a Violator, including reprimands and retraining; to suspend the payment of commissions and bonuses; to impose a fine; to exclude him/her from the list of claimants for honorable distinctions and Recognition Ceremony; to cancel his/her registration on the Company's initiative in a unilateral manner.
6.4. Mentors are obliged to acquaint all their members of Organization with the rules of zero activity policy in unopened markets.
6.5. All registration numbers assigned by the Company in the territory of an unopened market are invalid.

7. Terms and conditions of cooperation with the Company

7.1. A Distributor is entitled to purchase the Company's products for personal use in any SW Store and recommend them to other people. A Distributor is entitled to get purchase orders occasionally, in order to help his/her relatives, friends and acquaintances place a group order for the Company's products.
7.2. If a Distributor systematically cooperates with the Company as well as if his/her activity is oriented on systematic income generation, he/she is obliged to get registered as an individual entrepreneur.
7.2.1. A Distributor who has reached the status of Business Team 5000 is obliged to get registered as an individual entrepreneur.
7.2.2. A Distributor shall notify the Company of his/her registration as an individual entrepreneur and provide copies of confirming documents to the Company within 3 working days from the date of registration as an individual entrepreneur.
7.3. A Distributor, registered as an individual entrepreneur, builds customer groups, invites other people to cooperate with the Company and helps them create an Organization.
7.4. A Distributor, who has the status of an entrepreneur, can sell the Products, provided that such a sale does not contradict the legislation of the country where it is carried out and the products are purchased not for personal, family use, but for business purposes.
7.5. A Distributor becomes an independent partner of the Company from the moment he/she is registered with the Company. A Distributor is not an employee, agent, principal, commission agent, legal representative of the Company and he/she is not in the employ of the Company.
7.6. A Distributor independently organizes his/her activity, being governed by the Distributor Standards and Statement of Policies and Procedures and the legislation of the country and the region where he/she resides and conducts his/her activity.
7.7. A Distributor bears full responsibility for compliance with legislation (laws and regulations) of the country of his/her residence, as well as of the countries where he/she conducts activity, including the timeliness and completeness of taxes paid, the lawfulness of conducted business activity.
7.8. A Distributor is solely liable for the risk of losses and expenses required to carry out his/her activity.
7.9. The Company, its branches, representative offices, departments, employees are not liable for the activity/inactivity of a Distributor.
7.10. A Distributor and his/her representatives are not entitled to file claims and lawsuits, associated with his/her independent activity, against the Company, its branches, representative offices and employees.
7.11. A Distributor is entitled to use services and information provided by the Company and required to perform his/her activity.
7.12. A Distributor is entitled to carry out his/her activity to the extent, which he/she determined for himself/herself, being governed by the Compensation Plan and the Distributor Standards and Statement of Policies and Procedures.
7.13. A Distributor shall understand that attendance of meetings, training sessions or other events is not a guarantee of success in business with the Company. A Distributor personally decides how much time and funds he/she is willing to spend on events attendance.
7.14. A Distributor is not allowed to use the events, organized by the Company, for the promotion or making a profit from the sales or advertisement of goods and services other than goods and services of the Company.
7.15. The Company provides Distributor with information and advisory support in the manner prescribed by the cooperation system.
7.16. Distributor are obliged to inform the Company on changes of their personal data (ex: name, address, phone numbers, passport information etc.) or changes of the information related to their activity with the Company, within one calendar day from the date of such changes by sending e-mail message to call-centre@sibvaleo.com with the following e-mail title: "Change of Distributor's data (full name), registration number, region". In the event of an e-mail address change, a Distributor shall update the information for the newsletter in his/her BackOffice profile and inform the Company about it.
7.17. If a Distributor has questions, complaints, or he/she finds any errors in credited and paid bonuses, commissions, Distributor' ranking within the Organization, a Distributor shall inform the Company in written form within 60 (sixty) days from the date of the implied error or the incident in question; about double registration fact – within the 12 (twelve) months.
7.18. If a Distributor has claims (complaints) against other Distributor, he/she should first inform his/her Mentor about this. The Mentor shall try to solve the problem together with the Leader of his/her Organization. If the dispute is failed to be resolved by the Mentor and the Organization's Leader, it is required to inform the Company about it in writing and attach a written explanation given by the Mentor and the Organization's Leader to the complaint. The Company will examine the complaint and make a decision.
7.19. A Distributor agrees not to distribute negative information during and after the termination of cooperation with the Company. "Negative information" means any publicly available negative statement that contains false information about the Company, including public and online announcements, statements that bring into question the Company's reputation and degrade its employees and other Distributors.

8. Providing information on products and possible ways of cooperation with the Company

8.1. A Distributor shall not present oneself as an employee, worker, commission agent, agent, representative of the Company. A Distributor provides information about the Products and business of the Company as an independent partner who is registered with the Company and independently conducts his/her activity.
8.2. A Distributor shall present customers all possible ways of cooperation with the Company. A Distributor shall not make any statements, claims, offers to other people about the Company's products or business, which are not complete, accurate and truthful.
This obligation includes the following rules:
8.2.1. A Distributor shall inform the people whom he/she enrolls that the business model of the Company is multilevel marketing.
8.2.2. A Distributor is obliged to give only true information about the potential income from cooperation with the Company. A Distributor shall not assert that income from the cooperation with the Company is assured or predetermined. A Distributor is obliged to explain to people whom he/she enrolls that they can achieve success only upon devoting considerable effort.
8.2.3. A Distributor can tell about the results of a successful business with the Company only based on real examples.
8.2.4. A Distributor is allowed to present data on sales volume of the Company's Products, turnover, potential income, which is given on the Company's Website or in the Brand Literature and Brand Training Materials.
8.2.5. A Distributor shall not provide false information about the expenses associated with a business development with the Company or about efforts and time spent to achieve the success.
8.2.6. A Distributor shall understand and inform others that the Company's business rests on purchases of the Products, growth of market share and volume of the Products sales, enrollment of new people to cooperate with the Company, their training and support.
8.2.7. If a Distributor responds to an advertisement of any person looking for a job, he/she shall from the very beginning clearly inform that his/her proposal gives the opportunity to perform an independent activity, in particular entrepreneurial one, rather than an opportunity of employment.
8.2.8. At the presentation, a Distributor shall inform a person, whom he/she invites for cooperation, that this presentation is dedicated to the possible ways of cooperation with the Company.
8.2.9. A Distributor shall not, directly or indirectly, assert that business with the Company and its products are part of any other business different from the Company's one.
8.2.10. A Distributor shall not convince people, who are intended to start cooperation with the Company, of the necessity to purchase any other products or services of the Company apart from the Registration Kit.
8.2.11. A Distributor is obliged to provide complete and reliable information about the quality, prices, recommended use and composition of the Products, as well as the availability of the Products at points of sales. In this case, a Distributor shall be guided by the information provided in the Brand Literature and Brand Training Materials intended for the country where the Distributor conducts his/her activity.
8.2.12. A Distributor shall not make statements, claims about the medicinal, healing and other properties of the Company products other than those given in the literature, documents, materials, developed and distributed by the Company and intended for the country where the Distributor conducts his/her activity.
8.3. A Distributor is solely and fully liable to third parties, public control and administration authorities for his/her personal statements, claims about the medicinal, healing and other properties of the Products not provided in the Brand Literature, Brand Training Materials and on the Products labeling.
8.4. A Distributor is solely and fully liable to third parties, public control and administration authorities for his/her personal statements, claims about potential income from cooperation with the Company that are not provided on the Company's website, Compensation Plan, as well as Brand Literature and Brand Training Materials.
8.5. A Distributor shall not promote products of other companies under the “Сибирское здоровье”, SIBERIAN WELLNESS brand.
8.6. A Distributor is not allowed to change the Company's products, its individual packaging, including the labeling, product tags, as well as to sell it under different names or under the name of other company.
8.7. A Distributor is not allowed to misrepresent independently produced literature or training materials or distorted Brand Literature and Brand Training Materials as Brand Literature and Brand Training Materials.
8.8. A Distributor shall not send or forward emails about the Company, its business and Products to persons with whom he/she doesn't have established personal or business contacts.
8.9. A Distributor shall fully and reliably inform all persons, whom he/she invites to cooperate with the Company, about all issues related to the Products, ongoing promotions, credited bonuses, Compensation Plan, Distributor Standards and Statement of Policies and Procedures, Products prices, recommended use of the Products, reasons for termination of cooperation with the Company, warranties, refund and repurchase of the Products sold, brand training programs, etc.

9. Distributor's remuneration

9.1. Distributor’s remuneration is determined according to the Compensation Plan of the Company.
9.2. The Company does not credit bonuses to a Distributor and does not make payments only for registration of a person with the Company invited by a Distributor, unless such a person purchases the Products, recommends it to other people and invites them to cooperate with the Company.
9.3. A Distributor, registered as an individual entrepreneur, receives commissions for his/her activity, depending on his/her Personal Purchase Volume and Purchase Volume made by members of his/her Organization, according to the Compensation Plan rules.
9.4. A Distributor can find his/her payment breakdown in the Personal Account on the Company's Website.
9.5. Commissions are credited on a Distributor's bank account.
9.6. Commissions can be paid to a Distributor by various legal entities affiliated to the Company, depending on the country where the Distributor makes Personal purchases of the Products and his/her Organization makes purchases.
9.7. Within a calendar month a Distributor, registered as an individual entrepreneur, is entitled to use the monetary funds, accumulated on the Bonus account, when buying the products. To use bonus amounts when purchasing products at the SW Stores, it is required to provide an identity document (passport, driver's license or any other ID card).
9.8. A Distributor, who is not an individual entrepreneur and does not have a permanent income from recommendations of the Company's products to other persons, accumulates monetary funds on Bonus account and can use them when purchasing products. To use bonus amounts when purchasing products at the SW Stores, it is required to provide an identity document (passport, driver's license or any other ID card).
9.9. The Company undertakes to fulfill its obligations under the approved Compensation Plan.
9.10. The Company is entitled to amend and introduce changes to the Compensation Plan and qualification conditions and inform Distributors about these changes and amendments.

10. Integrity and stability of Organization

10.1. Maintenance of integrity and stability of an Organization created by a Distributor is a priority for all subjects of the business with the Company.
10.2. The Company and each of its Distributors cannot guarantee the absence of Distributors turnover due to market variability.
10.3. A Distributor shall not take actions aimed at the destruction of organizations and interfere with the activity of other organizations, including:
– force or offer Distributors from other organizations to join his/her Organization;
– force or offer other Distributors to terminate cooperation with the Company;
– to attract to cooperation with the Company an Applicant who was previously invited by other Distributor;
– to make commercial and business offers to Distributors from other organizations associated with activity with the Company or other companies;
10.4. If a Distributor violates prohibitions stipulated in Clause 10.3, the Company is entitled to apply sanctions, specified in Clauses 5 and 20, against the violator.

11. Cooperation with other companies

11.1. Company's Distributors are entitled to cooperate with the Company, combining this type of activity with other ones. Company's Distributors qualified as Business Team 5000 or higher are entitled to cooperate with the Company, combining this type of activity with other ones, excepting the cooperation with the companies that use direct selling and multi-level marketing models.
11.2. A Distributor is prohibited to use the Organization, Mentors' line and SW Stores for promoting products and services of third-party companies.
11.3. If a Distributor violates prohibitions stipulated in Clauses 11.1 and 11.2, the Company is entitled to apply sanctions, specified in Clauses 20, against the violator.

12. Additional responsibilities of Distributors who also act as Mentors

12.1. Explain to Applicants, who are invited for cooperation, terms and conditions of the Distributor Standards and Statement of Policies and Procedures, Compensation Plan, the rules of filling out the registration form.
12.2. Make every effort to ensure that the Distributors, who are members of his/her Organization, observe legal requirements, terms and conditions of the Distributor Standards and Statement of Policies and Procedures.
12.3. Train Distributors of his/her Organization, in accordance with the recommended technologies of the Company.
12.4. Make every effort to motivate Distributors of his/her Organization, to attend regional and corporate, business and training events arranged by the Company and to participate in the Incentive Programs.
12.5. Develop his/her Organization on a continuing basis, keep in touch with Distributors of this Organization and provide them extensive support.
12.6. Provide Distributors of his/her Organization with timely information regarding various meetings, events, training sessions, new products and etc.
12.7. Personally participate in the Incentive Programs, business meetings and training events of the Company, in accordance with the annual calendar of Events and program, approved by the Company.
12.8. A Distributor is prohibited to demand to pay any amounts as a fee for the training course, a fee for the training, seminar, socio-cultural activities and (or) other similar events from the individuals, being their Mentor, as well as from individuals invited by a Distributor for cooperation with the Company.

13. Additional rights of Company's Distributors qualified as Business Team 5000 and higher

13.1. Distributors qualified as Business Team 5000 and higher are additionally granted by the Company with the following rights:
13.1.1. the right to participate in special Incentive Programs run by the Company;
13.1.2. the right to get special training;
13.1.3. the right to membership in Clubs;
13.1.4. the right to conduct international business as soon as he/she is qualified as Ruby Business Leader.
13.2. Additional rights and obligations of Distributors qualified as Business Leader and higher.
13.2.1. Distributors qualified as Business Leader and higher are given an additional right to develop business on the territories of other countries and regions, officially opened by the Company. Requests for conducting activity on the territory of other country are considered by the Company on individual basis.
13.2.2. Once the Organization's sales volume on the territory of other country reaches 1,900 points, a Distributor qualified as Business Leader or higher shall assume obligations to develop this Organization and increase its sales volume. Detailed terms and conditions of conducting activity can be found in the Mutual Cooperation Agreement.
13.2.3. To run business in other country, Distributors qualified as Business Leader or higher shall:
• complete special training from the Company, devoted to the peculiarities of the legislation and conditions of conducting activity on the territory of the country,
• conclude a Mutual Cooperation Agreement with the Company which regulates activity on the territory of other country.
13.2.4. If within three months after the conclusion of a Mutual Cooperation Agreement with the Company, Business Leader does not fulfill its obligations to develop the Organization which has reached a sales volume of 1,900 points or more in other country, the Company has the right to terminate the Agreement unilaterally. In this case, the above-mentioned Organization, as well as the rights and obligations for its development, may be transferred by the Company to an up-line Business Leader or another Business Leader, who conducts the activity in this country, without the Distributor's consent.
13.2.5. A Mentor qualified as Sapphire Business Leader and higher has the right, at his/her own discretion, to optimize the Organization of a down-line Distributor, if this Distributor is terminated for violation of the Distributor Standards and Statement of Policies and Procedures.

14. Terms of confidentiality

14.1. Distributors are obliged to follow confidentiality and non-disclosure rules in regard to the Company's information, which is considered as a commercial secret and service information, as well as in regard to the personal data of other persons, who cooperate with the Company, namely:
• copyright materials;
• confidential and private business information of the Company;
• information about Mentors, which discloses or is related to all the components of the Mentorship organization within business with the Company, including all lists of Distributor branches and all information about them;
• production and modification of the Company's products;
• business plans of the Company;
• volumes of personal and group purchases of Distributors and their organizations, their income and other financial information;
• personal data of Distributors, contact information of Distributors.
14.2. Confidential information can be available to Distributors on their Personal pages on the Company's Website. To protect confidential information, Distributors shall not:
• disclose any confidential information to any third party;
• disclose a password or other access code from Personal account to any third party;
• use or disclose any confidential information to any person, partnership, association, corporation or other legal entity.
14.3. Upon termination of cooperation with the Company, a Distributor, who possesses documents containing confidential information of the Company, is obliged to return them to the Company.
14.4. The terms of confidentiality shall remain in full force during the entire period of Distributor's registration with the Company, as well as after its cancellation or termination.
14.5. Collection, storage, processing, use and other actions with the Distributors' personal data are carried out by the Company in accordance with legislative requirements.
14.6. The disclosure of the Company's confidential information, excluding the cases when it is permitted by the Company, leads to significant and irreparable damage to the Company. Therefore the Company reserves the right to file a lawsuit against a person who is responsible for disclosure, to claim recovery of damages incurred, and also to take other measures in accordance with applicable legislation.

15. Rules of Products sale

15.1. The Company uses the multilevel marketing method to promote its Products and increase sales volume. This means that the Products can be bought first-hand at SIBERIAN WELLNESS stores or via the official E-shop based on a referral from a Distributor or a Mentor.
15.2. A Distributor can sell Products, provided that such a sale does not contradict the legislation of the country where such a sale is carried out, and provided that the products are purchased not for personal or family use, but only for business purposes.
15.2.1. A Distributor is entitled to sell the Products only on the territory of the country where these Products are certified by the Company. A Distributor can get the information about Products certification applicable on the territory of any country at the SW Stores of the country where he/she purchased the Products.
15.2.2. If a Distributor violates the requirement stipulated in Clause 15.2.1, he/she bears the responsibility in accordance with the legislation of the country where uncertified Products were sold. A Distributor who violates the requirements stipulated in Clause 15.2.1 may be sanctioned by the Company according to Clause 20 of the Distributor Standards and Statement of Policies and Procedures. In particular, the violator may be restricted to sell Products at the SW Stores and E-shop.
15.3. Subject to agreement with the Company, a Distributor qualified as Business Leader or higher has the right to open an SW Store in accordance with the standards established by the Company.
15.4. A Distributor, who carries out retail trade of the Products as a private individual or through the SW Store opened by him/her, is obliged to sell the Products at prices set by the Company for the country, where the Products are sold.
15.5. A Distributor is eligible to sell the Products only to the final buyer (consumer) subject to the legislation requirements.
15.6. Distributors are prohibited to open their own online stores or sell Products through other existing online stores.
15.7. A Distributor is not allowed to sell or offer for the sale or display Products in catalogs for order via email, telemarketing, radio, television and other media, as well as multicast via fax, Internet, email newsletter, news messages or another remote method.
15.8. A Distributor is not allowed individually or through intermediaries to display Products for sale in institutes and areas of retail trade, such as retail stores, pharmacies, beauty and hairdressing salons, fairs, expositions, stalls, sales outlets, markets, auctions, or such-kind places and outlets, and others, which have no Company's permission for its Products sale.
15.9. A Distributor has the right to purchase Products through the official E-shop for personal use only.

16. Product quality guarantee. Product refund

16.1. The Company guarantees the production of proper quality products and their compliance with legal standards and requirements. Sold Products are safe for human health and life, provided that all instructions for their use are observed.
16.2. The documents confirming the Products' proper quality can be found at the SW Stores and provided by Distributors, who sell products as a private individual.
16.3. If the Products purchased from the Company for any reason turns out to be of poor quality, they can be returned to the Company. A Distributor can get in return analogous product of a proper quality or the amount paid for it, exclusive of bonuses and paid commissions.
16.4. If a Distributor has sold the defected Products, he/she is obliged to refund the cost of this product to the buyer.
16.5. Product quality claims are accepted by the Company within the Product's expiration period.
16.6. Product of proper quality can be returned to the Company if the sale receipt or cash register receipt is provided, the individual packaging of the Product is not damaged, the Product was not completely or partially used, and if such a return does not contradict the legislation requirements.

17. Use of the Company's intellectual property

17.1. The Company’s name and other intellectual property items and means of individualization (its brand name, logo, trademarks, patents, etc.) are owned exclusively by the Company.
17.2. All corporate printed materials, training materials, audio- and video materials, multimedia products, photos, musical and literary works of the Company are legally protected and cannot be reproduced without the prior written consent of the Company.
17.3. Presentations, schools, lectures, seminars, trainings and other events organized by the Company are the Company's intellectual property. Their recording on the photo- or video camera or recorder is allowed only subject to the written consent of the Company.
17.4. Presentations, schools, lectures, seminars, trainings and other events organized by Distributors, can be recorded by photo- or video camera or recorder only subject to the written consent of a Distributor, who holds the event.
17.5. Secret photography of presentations, schools, lectures, seminars, trainings and other events, organized by the Company or Distributors is prohibited.
17.6. Distributors are not allowed to produce any goods and items marked with the Company's name or logo, as well as its trade names, trademarks and legal name.
17.7. Distributors are not allowed to use the Company's intellectual property items during his/her activity in cooperation with the Company or any other business (including to put the Company's name, logo, emblems, trade marks on vehicles, facades of buildings, outdoor advertising facilities, into phone directory or on stationery products) without the prior written consent of the Company.
17.8. The right to use the Company's trademarks for the purpose of carrying out the activity can be granted to a private enterprise in the manner and on the conditions stipulated in the Opening Procedure and Operating Rules for Private Enterprises.
17.9. The use of the Company's intellectual property items without its consent is deemed a violation of the Distributor Standards and Statement of Policies and Procedures, and a Violator can be subject to sanctions stipulated herein, as well as subject to the responsibility as provided for in the legislation.

18. Advertising and promotion

18.1. Advertising materials designed and distributed by the Company can be used (without the rights of reproduction and replication) by Distributors without the prior consent of the Company.
18.2. Subject to approval by the Company, a Distributor has the right to organize and participate in promotional events to promote their business.
18.3. The Company has a website on the Internet: https://siberianhealth.com. The official Company's website provides information about the Company, its Products, offers for the Distributors, as well as business information for individuals who cooperate with the Company. Distributors have Personal accounts on the Company's Website, which can be accessed with a login and password.
18.4. Distributors are not entitled to give any interviews for print and digital media, television channels (mass media) on behalf of the Company or to place any advertisements in the mass media and on the Internet without the prior written consent of the Company.
18.5. A Distributor is not allowed to produce, replicate advertising, informational, reference materials and/or documents on paper, audio-, video- or electronic media associated with the Company, its Products, business without the prior written confirmation of its form and content by the Company.
18.6. Distributors can participate in exposition and trade fair activity, presenting the Company products, holding consultations concerning their use and selling the Company products on the temporary (for no more than 3 calendar days) expositions and trade fairs, if it does not contradict the legislation of the country where the exposition or fair takes place.
18.7. A Distributor is entitled to use the promo stand, designed by the Company, for demonstration of the Products and promotional activity in accordance with the legislation. The sale of products with the use of promo stands is prohibited.
18.8. Unsolicited emails.
The Company does not allow Distributors to send unsolicited commercial emails, if these letters do not comply with the applicable legislation and regulations and if they can be qualified as SPAM.
18.9. Rules of online activity.
18.9.1. Distributors' Websites.
Subject to compliance with the requirements listed below, Distributors can create and use their own websites to promote the Company's business and Products. Distributors' Websites shall be used only for advertising purpose, but not for the sale of the Products. A Distributor shall submit the beta version of the website to the Company for review and obtain written permission from the Company before the website is launched. A Distributor shall submit to the Company any amendments he/she wants to introduce to the approved website and obtain the Company's permission before they will be added to the website. Distributors are allowed to create their own websites if a website and its content comply with the Distributor Standards and Statement of Policies and Procedures. This serves as a Distributor's guarantee that his/her actions are legal and do not misinform Clients or potential Distributors. Distributors waive any claims against the Company and undertake to follow these Rules. To obtain permission for a website launch or for the introduction of changes to an already existing resource, it is required to submit information to the following address: moderation-team@sibvaleo.com.
18.9.2. Requirements for Distributor's website design.
The website shall visually differ from the official website of the Company in design and structure. Each page of a Distributor's website shall contain the following information on the first page:
1. Inscription "Siberian Wellness Distributor's personal website" (the font at least 20 point size).
2. Distributor's name and rank (the font at least 18 point size).
3. Distributor's photo (image size at least 200 x 200 pixels).
4. Distributor's contact details (the font at least 12 point size).
5. Navigation button on the official website of the Company with the inscription "The official website of the Company" and a referral link.
18.9.2.1. Only up-to-date corporate style elements and logos of the Company shall be used for website design. The current brand book is available on the private part of the Company's Website in the "Business Tools" section.
18.9.3. Public website content.
A Distributor is responsible for the content of his/her website and guarantees that its content is compliant with the official information of the Company.
18.9.4. Distributor's website shall promote only Products and business of the Company.
A Distributor's website shall contain content and information that is presented and promoted by the Company. A Distributor is not allowed to advertise products, services and opportunities other than the Company's ones.
18.9.4.1. To promote the Products, it is recommended to post referral links to the official Company's E-shop, for those countries where E-shop is available. In this case, the purchase will be credited to the personal number of a Distributor who posted the referral link.
18.9.4.2. Within the countries where official E-shop is not available, the Products can be promoted via online stores solely by private enterprises, which operate subject to agreement with the Company.
The owner of such an online store is obliged to:
– request the presence of Distributor's registration number and transfer points to the specified number;
– observe the single-price policy for the Company's products;
– offer only the products of the Company;
– comply with the laws of the country where this online store operates.
18.9.4.3. Information on the official online store operating in the country can be found on the Company's Website.
18.9.5. Domain names, email addresses and online nicknames.
Distributors are not allowed to use Company’s trademarks, Company’s name and names of Company’s products for the registration of domain names, email addresses or online nicknames.
18.9.6. Online auctions and marketplaces.
The Company's products and services shall not be posted on online auctions and marketplaces on the Internet, including, but not limited to: market.yandex.ru, torg.mail.ru, amazon.com, ebay.com, avito. ru, youla.ru, prom.ua, deal.by, satu.kz, prom.md, negociol.com, ticiz.com, olx.com, etc.
18.9.6.1. Paid advertisement of Distributors' public websites in auction-based advertising systems and in advertising systems of social media (Yandex.Direct, Google AdWords, MyTarget, Begun, advertising network of VKontakte, Facebook, Instagram and other types of paid advertising) is allowed only subject to compliance with the requirements of the Distributor Standards and Statement of Policies and Procedures for the creation, design, content filling and maintenance of Distributors' public websites (including Clauses 15.4, 15.6, 17.1, 17.8, 18.9.1, 18.9.2, 18.9.2.1, 18.9.3, 18.9.4, 18.9.4.1, 18.9.4.2, 18.9.4.3, 18.9.5, but not limited to them).
18.9.6.2. When placing paid advertisement of Distributors' public websites in auction-based advertising systems and in advertising systems of social media (Yandex.Direct, Google AdWords, MyTarget, Begun, advertising network of VKontakte, Facebook, Instagram and other types of paid advertising) it is not allowed to place referral links of Distributors as a target links. The advertisement shall direct a user to the public website of the Distributor.
18.9.6.3. When placing paid advertisement of Distributors' public websites in auction-based advertising systems and in advertising systems of social media (Yandex.Direct, Google AdWords, MyTarget, Begun, advertising network of VKontakte, Facebook, Instagram and other types of paid advertising), it is not allowed to use the Company's name – Siberian Wellness, "Сибирское здоровье" collocation in any translations and transliterations, trade names of products and product lines of Siberian Wellness in the text of the advertisement and as keywords in the advertisement.
18.9.6.4. When placing paid advertisement of Distributors' public websites in auction-based advertising systems and in advertising systems of social media (Yandex.Direct, Google AdWords, MyTarget, Begun, advertising network of VKontakte, Facebook, Instagram and other types of paid advertising) with the use of banners, it is prohibited to use the Company's intellectual property items (its brand name, logo, trade names, trademarks, patents, etc.) as the main accent.
18.9.7. Use of the third party’s intellectual property.
A Distributor bears responsibility for the use of trademarks, service marks, copyright and intellectual property of a third party when posting a message on social networks.
18.9.8. Prohibited postings.
Distributors are not allowed to post or link to any postings and materials that:
– Is sexually explicit, obscene, or pornographic;
– Is offensive, profane, threatening, harmful, defamatory, libelous or discriminatory (whether based on nationality, race, ethnicity, religion, gender, sexual orientation, physical disability, or otherwise);
– Is graphically violent (including any violent video game images);
– Is solicitous of any unlawful behavior;
– Is in violation of any intellectual property rights of the Company or any third party.
18.9.9. Shutting down of Public website and its assignment.
In case of termination of registration with the Company, a Distributor shall take one of the following actions in regard to his/her website:
– shut down his/her Public website;
– transfer his/her Public website to other Distributor subject to the consent of the Company within three days and send information about shutdown or new owner to the following e-mail address: call-centre@sibvaleo.com;
– if a Distributor preserves his/her domain name, within 3 days after the registration is terminated he/she shall delete the content of his/her Public website, including all the information about the Company, its products and a reference to the fact that the website belongs to the Company’s Distributor.
18.9.10. The Company reserves the right to address hosting providers and other third parties in order to request to block the Internet resource if it violates the above-mentioned rules, subject to prior notification about the detected violations that shall be sent to the contact details given on such a website. The Company may cancel its decision to block the resource if within one calendar week after the notification the website is changed and it meets the above-mentioned conditions.
18.10. Creation and design of social media groups.
18.10.1. The group or page description shall reflect its affiliation to Siberian Wellness, “Сибирское здоровье” brand. In addition, it shall also contain the Distributor's last name, first name and patronymic name (if any), city and registration number. It is allowed to use referral links to the E-shop, Website and online registration.
The name of a group/page or personal profile shall not contain "Siberian Wellness" word collocation, (as well as its transliteration or translation in any other language). It is allowed to use any other names and word collocations emphasizing a theme of beauty, healthy lifestyle, network business or Siberia. The name and description of the group/page or personal profile shall not contain any appeals to join the Company which are not consistent with the reality, for example: "employment in Siberian Wellness".
18.10.2. Groups design shall contain corporate style elements. You can download options for the main photo/cover on the Company's private website in the "Business Tools" section.
18.10.3. Remember, Siberian Wellness products are not intended to diagnose, treat, cure, or prevent any disease. Advertising of biologically active supplements and food supplements shall not:
a) create an impression that they are medicines and (or) have medicinal properties;
b) contain references to specific cases of people's recovery or health improvement as a result of such supplements intake;
c) contain an expression of gratitude to physical persons for the use of such supplements;
d) encourage the rejection of a healthy diet;
e) create an impression that such supplements have advantages by giving reference to the studies required for state registration of such supplements, as well as use any other findings in the form of direct recommendation to take such supplements.
18.10.4. It is forbidden to combine information about Siberian Wellness products with information about other companies' products.
18.10.5. It is forbidden to sell Company products through the group on social media. You can only recommend the products and post referral links there. Such comments as "You can purchase this product from me" constitute a violation.
18.10.6. Paid advertising of Distributors' groups on social networks and paid promotion of personal profiles on social networks are allowed only subject to compliance with the requirements of the Distributor Standards and Statement of Policies and Procedures for the design of the advertised group or profile (Clause 18.10).
18.10.6.1. When placing paid advertisement of Distributors' groups on social networks and paid promotion of personal profiles on social networks, it is prohibited to place a referral link as a target one for advertising. The advertisement shall direct a user to the advertised Distributor's group or the promoted personal profile of the Distributor.
18.10.6.2. When placing paid advertisement of Distributors' groups on social networks and paid promotion of personal profiles on social networks, it is prohibited to use the name of the Company – Siberian Wellness, "Сибирское здоровье" word collocation in any translations and transliterations, trade names of products and product lines of Siberian Wellness in the text of the advertisement and as keywords in the advertisement.
18.10.6.3. When placing paid advertisement of Distributors' groups on social networks and paid promotion of personal profiles on social networks with the use of banners, it is prohibited to use the Company's intellectual property items (its brand name, logo, trade names, trademarks, patents, etc.) as the main accent.
18.10.7. It is not allowed to organize and conduct group purchases on third-party Internet platforms, including public websites, forums, messengers and social networks.
18.10.8. If Clause 18 is violated, the Company is entitled to apply the sanctions, described in Clause 20, against violators and block them.

19. Rules of conduct at SW Store

Maintenance of a business-friendly atmosphere and corporate culture at any SW Store is an important requirement for the successful activity of the Distributors and the Company itself.
19.1. On the territory of SW Store it is prohibited to:
19.1.1. Sell and advertise products and services of other companies.
19.1.2. Sell and advertise Goods, Products, Brand Literature and Brand Training Materials that are not presented by the Company in the assortment of a given country.
19.1.3. Intentionally wait for potential Distributors entering SW Store in order to recruit them.
If Distributors stay in a retail space for a long period of time without any reason, he/she will be considered as a person who waylays Distributors. It is recommended to hold meetings, training and master classes for Distributors in special places on the territory of SW Store, such as a conference room or a meeting room.
19.1.4. Introduce changes to the Mentor's recommended intake program or business building program when contacting Distributors of other Distributors.
19.1.5. Distribute any rumors that may negatively affect the reputation or the atmosphere among the members of other Distributor's Organization.
19.1.6. Take any actions which result in the Applicant's decision to enroll in the organization of a Mentor who did not invite him/her to the Company's business.
19.1.7. Inappropriately treat SW Store employees and other Distributors of the Company (including insults, rudeness, temper, coarse language).
19.1.8. Request SW Store employees to take actions beyond their official duties.
19.1.9. Violate public order (talk loudly, be drunk on the territory of SW Store, use physical force to settle disputes with visitors or employees of SW Store, misconduct, etc.).
19.1.10. Eat, drink alcohol, take narcotic and toxic substances within the territory of SW Store.
19.1.11. Reserve and book Products, Brand Literature and Brand Training Materials and other related Products of the Company.
19.1.12. Disturb employees of SW Store when they provide service to Customers, and Distributors.
19.1.13. Violate the working hours of SW Store.
19.1.14. Any medical practice carried out in public places requires state licensing. Therefore, it is prohibited to hold any medical consultations on the territory of SW Store, as well as carrying out diagnostics and therapeutic procedures on the territory of SW Store. Such actions are contrary to the principles and rules of the Company.
19.1.15. Arrange fee-paying events (workshops, master classes and others).
19.2. SW stores are a territory with equal opportunities for all Distributors. Observation of the Rules of conduct is compulsive for all the Company Distributors.
19.3. If Clause 19 is violated, the Company is entitled to apply the sanctions, described in Clause 20 hereof, against violators.

20. Sanctions

20.1. Upon getting information on violation of the Distributor Standards and Statement of Policies and Procedures, the Company carries out an inspection and requests explanations from a violator and his/her Mentor.
20.2. If a Distributor does not respond to the Company's request within the specified time or cannot disprove the claim, the decision is made on the basis of the available information.
20.3. According to the inspection results the Company decides to apply sanction against a violator and informs the violator, his/her Mentor and the Leader of his/her Organization about the decision. If the Company does not take any action after receiving information about the violation, it does not presuppose the refusal to apply sanctions upon such violation in the future.
20.4. If it is detected that some actions entailed material or moral damage to customers and/or the Company, the Company has the right to withdraw the authorization, given to the private enterprise, to sell the Products as well as to unilaterally terminate the cooperation with a Distributor.
20.5. Types of sanctions.
20.5.1. Warning. After the first violation committed by a Distributor, the Company at its sole discretion can make an official warning to a violator about possible sanctions in the case of further violations.
20.5.2. Moratorium. Suspension of current payments to a Distributor and access restriction to the Personal Account on the Company's website for up to three months. At the discretion of the Company, the moratorium period can be extended in order to get complete information about the violation.
20.5.3. Fine. A Distributor is subject to a penalty in the amount of one to three monthly payments, which is deducted from the amounts credited to the Distributor by the Company as a payment.
20.5.4. Lowering of a Distributor's Rank, deprivation of his/her qualification, excluding him/her from ratings and motivational Programs.
20.5.5. Distributor's referral link blocking. This measure is applied against violators of the Distributor Standards and Statement of Policies and Procedures when he/she conducts advertising and information activity on the Internet by placing paid advertisements in auction-based systems and in advertising systems of social media (Yandex.Direct, Google AdWords, MyTarget, Begun, advertising network of VKontakte, Facebook, Instagram and other types of paid advertising), including paid advertising of Distributors' groups on social networks and paid promotion of personal profiles on social networks (Clauses 18.10.6-18.10.6.3), as well as paid advertising of Distributors’ public websites (Clauses 18.9.6.1-18.9.6.4). Users who follow blocked referral link are redirected to the official Company's website without signs of affiliation to the violator's registration number.
20.5.6. Termination. Termination of Distributor's registration with the Company on the Company's initiative.

21. Change of the Distributor Standards and Statement of Policies and Procedures and other Company's documents

21.1. The Company is entitled to make amendments and introduce changes to the Compensation plan, qualification conditions, Distributor Standards and Statement of Policies and Procedures and other Rules and regulations, placing the information about such amendments, changes or added/changed text of the Standards, Rules and regulations on the Company’s Website.
21.2. The Company reserves the right to change the prices and points value of Products, set discounts on Products, hold promotions, change the assortment of Products and payment terms. The Company notifies private enterprises, and Distributors about these changes and ongoing promotions by posting information on its Website. This information can be also found at SW Stores. The Company does not reimburse the losses incurred due to the introduction of these changes, as well as due to the lack of Products at warehouses.
21.3. The Company notifies private enterprises and Distributors of the changes and promotions specified in Clause 21.2 by sending them newsletters to the email addresses specified during registration.
21.4. All changes specified in Clause 21.2, enter into force on the date specified in the Company's informational message.
21.5. If a Distributor has changed his/her email address, he/she has to notify the Company of it. Otherwise, informational messages sent by the Company to the initial email address will be considered sent to the right address, and the recipient will be deemed as being notified about all the changes.
Distributors and the Company are aware that the Distributor Standards and Statement of Policies and Procedures are aimed at building of long-term relationships, that is the building of a long-term and stable business with the Company. Compliance with the Distributor Standards and Statement of Policies and Procedures means the realization of all the opportunities provided by the Company, good income and financial well-being of all Distributors of the Company.

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