Business

Reference
Guide

This Business Reference Guide is current as of September 2022.

 INTRODUCTION
Welcome to Amway 2
Amway, IBOs and the IBOAI 2

CONTENTS
Direct Selling Distribution Channel 2
IBO Responsibilities 2
Code of Ethics 3
Business-Building Tips 3
Use this guide to discover and Getting Started 3–4
learn more about how to earn Registering Other IBOs 4
income, understand the Rules Training Resources 4

of Conduct and find helpful A. THE PLAN

business information. Amway IBO Compensation Plan A-1
Annual Business Renewal A-21
Volume Credits and Transfers A-21
Building an International Business A-21

B. MANAGING YOUR BUSINESS

Product Information and Ordering B-1
AMWAYPROMISE™ B-1
Returns B-1
Warranty & Service Program B-1
Product Liability Protection B-2
Procedures for Handling Complaints B-2
Sales Tax B-2
Business Licenses B-2
Zoning Ordinances B-2
Bookkeeping Basics B-2
Income Tax B-3
Insurance B-3
Training and Business Support Materials B-4
Responsibility Statement B-4
Succession Planning B-4
Partner Stores B-4

C. RULES OF CONDUCT
Rules of Conduct C-1

BUSINESS CONDUCT & RULES

DEPARTMENT CONTACT INFO
Email [email protected]
Phone 616-787-6712
Fax 616-787-7896
 INTRODUCTION INTRODUCTION
Welcome to Amway Diamond level or above, elected by IBOs qualified at the also requires that all videos be approved by the Getting Started
Platinum level or above. You may contact them either Amway Business Support Materials Administration
Congratulations, Independent Business Owner! You Tip 1. Get to know the products.
through your upline or directly to the Association office at: Department before posting, regardless of whether
have started a great business supported by Amway – a
they contain music. Learning: Product sales are the key to earning money
family-owned company, built on the power of
and exploring Amway.com is a great way to learn
relationships. We want to make it as easy as possible Following the Rules helps protect your business and
about all the wonderful products Amway has to offer.
for you to build your business, which is why we’ve put IBOAI the businesses of all IBOs and these are just a few
Think about which products you and your customers
together this Business Reference Guide. Read over it to 220 Lyon Street NW, Suite 850 examples. Please review the entire Rules of Conduct in
would likely order again and again.
get started – and refer to it anytime you have a Grand Rapids, MI 49503 this Guide, as well as the Quality Assurance Standards
question about your business. [email protected] on Amway.com. Product experience is the best sales tool. When you
iboai.com become familiar with the high quality and unsurpassed
Amway, IBOs and the IBOAI *
These departments within Amway are always ready to
Phone: 616-776-7714 Fax: 616-776-7737 performance of Amway products, you’ll be able to talk
answer questions:
You’re in business for yourself but never by yourself. about them with confidence, making it easier to sell to
Amway and Independent Business Owners (IBOs) work Customer Service (CS) customers. Share your favorites with friends and family
together every step of the way to move the business Direct Selling Distribution Channel Business Conduct and Rules (BCR) and they will likely be interested in buying them, too.
forward. Amway and IBOs also work with the An easy way to get started is with the New IBO
Independent Business Owners Association International Direct selling businesses rely on person-to-person Business Support Materials (BSM) Product Pack. Experience an amazing collection of top
Inc.® (the IBOAI) to make positive changes that benefit contact; relationships are the heart of our business. ††
eBay® is a registered trademark of eBay Inc. selling customer products carefully selected to get
all IBOs. Every product has a unique story and every IBO is a †††
Amazon® is a registered trademark of Amazon Technologies, Inc. your selling business off to a great start!
product ambassador who tells that story.
Let’s take a look at the relationship between Amway, Code of Ethics Amway catalogs and other printed materials are helpful
IBOs and the IBOAI. The Direct Selling Model. Unlike businesses that rely resources for learning about products and Amway
on mass advertising and online selling, the IBO business IBOs are committed to conducting businesses brands. Once you have personally experienced the
Under the IBO Contract, Amway provides IBOs with the model is based on personal interactions and according to the following principles: products and learned about them, you'll be ready to
right to purchase products through Amway at IBO cost relationships. • IBOs will follow not only the letter of the Rules of introduce the products to others!
for resale, the right to sponsor others to become IBOs
Amway is a prominent and active member of regional Conduct, but also the spirit of the Rules.
(once the new IBO has become eligible by selling $300 Tip 2. Introduce products to others.
and national direct selling associations worldwide and • IBOs will conduct themselves in such a manner as to
in Verified Customer Sales), the right to qualify for
Amway executives hold approximately 50 leadership reflect only the highest standards of integrity, Selling: You earn income by selling Amway products.
bonuses under the Amway IBO Compensation Plan and
positions in these associations. In the U.S., Amway has honesty and responsibility because they recognize The most profitable sales are Verified Customer Sales
a variety of support for IBOs and their customers. IBOs
been a member of the Direct Selling Association (DSA™)† that their actions as IBOs have far-reaching effects, (VCS). A Verified Customer Sale is a sale to a customer
own and operate their own Independent Businesses
since 1962. Check out the DSA’s website, dsa.org, to not only on their businesses, but on those of other through an Amway channel, such as the Amway app,
(IBs) through which they sell Amway™ products and,
learn more. IBOs as well. Amway website, MyShop digital storefronts or a sale
once eligible, may sponsor others to do the same. As
from an IBO’s inventory that is recorded with the
independent contractors, IBOs are required to comply †
Direct Selling Association (DSA™) is a trademark of Direct Selling Association. Create a Receipt tool. The sale must capture the
with the IBO Contract including the Rules of Conduct,
customer’s name and unique mobile phone number,
but otherwise have the freedom to work how, when and IBO Responsibilities along with the product and retail price. The consistent
where they want. They define what success means to
IBOs know the power and privilege of business 10% markup on all products means you make retail
them, set their own goals and develop a plan for how to
ownership and along with these comes responsibility. It’s margin on every sale
get there. And they have the support of their upline, as
well as thousands of Amway employees, working hard your responsibility to follow the Rules of Conduct, Other places you can go for more information about
to help them achieve their goals. located in Section C of this Guide, which are part of your selling products include:
contract with Amway. For example, the Rules allow you • Your upline.
The IBOAI is a trade association that any IBO can join, to conduct online selling only through your Amway
but it’s more than that: it is the voice of all IBOs – a • Amway.com for the latest information about
MyShop Digital Storefront, not in retail stores or on
clear, open channel of communication between IBOs products.
retail sites like eBay®†† or Amazon®†††. The Rules also
and Amway North America. You and every other IBO are prohibit IBOs from causing Amway products to be • Sales resources available on Amway.com.
the heart of the Amway opportunity and when the exported or imported to or from any other country, • Education courses on how to sell products at
IBOAI was first established in 1959 as the American Way regardless of whether Amway is doing business in Amway.com/Education.
Association, the founding IBOs discovered the that country.
importance of making sure all IBOs had a voice in the
Amway business. They believed in several founding When it comes to social media, be sure to use privacy
principles, including the right to be in business for settings so that only your personal contacts see your
yourself and that the opportunity should be open to all business information, not the whole world. Want to make
people from all walks of life. The IBOAI listens to IBOs’ a video to promote your Amway business? According to
ideas, proposes improvements and advises Amway on the the Rules of Conduct and applicable copyright laws,
best ways to move the business forward. The IBOAI Board you must first obtain the rights to use the music. Amway
is composed of 15 voting members qualified at the

*
IBOAI is a registered trademark of Independent Business Owners Association International. *
Except for agricultural products

2 3
 INTRODUCTION
THE PLAN
Tip 3. Build for profitability. Tip 3. Get to know products your customer want
through the New IBO Product Stack.
Sponsoring: You have a lot of freedom when it comes to
building your business. Expand your business and share Learning and sharing products based on customer top
the Amway opportunity by sponsoring others. You’ll train needs will help you be more productive and have a
new IBOs, just as you were trained by the IBO who stronger start to your business. SECTION CONTENTS
sponsored you. In doing so, you may earn monthly
Performance Bonuses based on how much you sell and Training Resources Amway IBO Compensation Plan A-1
monthly and annual Leadership Bonuses based on the Know the business and the products. Annual Business Renewal A-21
sales of downline IBOs.
There’s a lot to learn when you first get started and Volume Credits and Transfers A-21
New IBOs are required to sell $300 in Verified Customer upline IBOs are a great resource for information on Building an International Business A-21
Sales before they are eligible to begin sponsoring others. building a business. Training resources developed by
To help reach this VCS requirement, every new IBO is Amway are also very helpful. The educational videos
strongly encouraged to register at least three new buying focus on topics like making money, selling and business
customers and complete the Amway Education Before essentials. You can find them on Amway.com/Education.
You Start series. You can find additional support from Amway-accredited
Approved Providers. Approved Providers are authorized
Registering Other IBOs by Amway to provide IBOs with optional support such as
conferences, literature, webinars, mentoring and more!
Tip 1. Ask your upline IBO for help.
For additional materials to help you grow your business,
The IBO who registered you likely has a proven system log in to Amway.com and visit the Resource Center.
for generating sales and showing the Amway
Independent Business Owner Compensation Plan to
people who might be interested in starting their own
Amway business. Use them as a resource when you
start presenting the Plan.
Tip 2. Get to know Amway.com.
Visit and explore Amway.com to learn more about the
different product categories and tools to manage your
business. Becoming familiar with product categories,
product brands and website navigation will save you
time and enable you to show prospects how easy the
Amway website is to use.

4
A
 THE PLAN | HOW YOU EARN INCOME THE PLAN | HOW YOU EARN INCOME
Amway IBO Compensation Plan Immediate Income Performance Bonus Schedule How Performance Bonuses Are Presented on Your
Bonus Statements
The Amway Independent Business Owner Compensation Your immediate income is the difference between the If your monthly Your Monthly
Plan enables you to earn income based on selling cost at which you purchase product from Amway or PV is: Performance Bonus is:
high-quality nutrition, beauty and home products. your sponsoring IBO and the price at which you sell the On Performance Bonus Statements, the Performance
products to your own customers. This income is realized 7,500 or more 25% of your BV Bonus is presented as two elements: “Personal Volume”
You can earn bonuses based on the overall sales volume and “Differential on Personally Sponsored [IBOs] … ”
immediately upon each sale to a customer. 6,000–7,499 23%
generated through the customers you serve and through Instead of subtracting your frontline’s total bonuses from
sales made by the business organization you develop by Performance Bonus 4,000–5,999 21% your gross bonus, the differential method shown on your
registering others as IBOs. New IBOs are required to sell bonus statement makes the subtraction between the PV
$300 in Verified Customer Sales before they are eligible Additional income can be earned through the monthly 2,500–3,999 18%
bracket percentages of you and your frontline. Both
to begin sponsoring others. Simply stated, the Amway Performance Bonus. The Performance Bonus is driven 1,500–2,499 15% methods arrive at the same result.
Independent Business Owner Compensation Plan by sales volume, which is tracked from two sets of
numbers – Point Value (PV) and Business Volume (BV) – 1,000–1,499 12% Here is how each element is calculated in the differential
rewards you for selling products and services and for
helping other IBOs you register do the same. that are published in connection with each available 600–999 9% method, followed by a simplified example.
product or service. 1. Personal Calculation: Your personal BV times your
In order to continue their IBO Contract, IBOs who have 300–599 6%
registered with Amway prior to January 1, 2022 and PV is a unit amount (you can think of it as the number PV bracket percent (based on your total PV, including
of points) assigned to each product. The total PV 100–299 3%
have one month in which they generate positive PV pass-up).
without generating any VCS must generate VCS that is associated with your monthly sales volume is tracked to
2. Differential Calculation: The group BV of each of
equal to at least 60% of their PV in one of the next five determine your Performance Bonus bracket. The higher
your frontline IBOs, times: your PV bracket percent
consecutive months. If the IBO fails to meet this your PV total, the higher the percentage (up to 25%)
minus that IBO’s PV bracket percent. (Differential is
requirement, Amway will terminate their IBO Contract used in calculating your bonus (see the Performance
calculated separately for each of your frontline IBOs.)
and they will receive a refund of the Amway Business Bonus Schedule below).
Services & Support fee and IBOAI Membership fee. BV is a dollar figure assigned to each product. The total
Amway will provide such IBO with the option to join BV associated with your monthly sales volume is How to Interpret a Performance Bonus Statement
Amway’s Preferred Customer program for as long as multiplied by the percent from your PV bracket to
eligibility to join the Preferred Customer program determine your gross Performance Bonus. Your sales
remains open, and subject to the Terms and Conditions volume, or your PV/BV as it is generally known, is
You
of the Preferred Customer program. generated by your own purchases, whether for personal
150 1300
use or resale and by the purchases made by your = 12%
In order to continue their IBO Contract, IBOs who have 450 3900 (Your PV Bracket)
registered customers.
registered with Amway on or after January 1, 2022 and
have one month following the month in which they All PV associated with a product, and all BV that generates
Frontline A Frontline B Frontline C
register in which they generate positive PV without a Performance Bonus, “passes-up” to the next eligible IBO
generating any VCS must generate VCS that is equal to in the LOS and is called “pass-up” or “Pass-up Volume”
at least 60% of their PV in one of the next five or, respectively, “pass-up PV” and “pass-up BV.” 150 450 = 6%
100 100 150 600
= 9%
= 3%
consecutive months. If the IBO fails to meet this 450 900 (A’s PV Bracket) 300 300 (B’s PV Bracket) 450 1800 (C’s PV Bracket)
To figure your gross Performance Bonus, you add the
requirement, Amway will terminate their IBO Contract
Pass-up Volume from your frontline IBOs (those you
and they will receive a refund of the Amway Business
personally registered) – both PV and BV – to your
Services & Support fee and IBOAI Membership fee. Such
personal PV and BV, then make your calculation 150 300 150 450 = 6%
IBO may continue as a Customer, but will not be eligible
according to the Performance Bonus Schedule. However, 450 600 450 1350
to join Amway’s Preferred Customer program.
any Performance Bonuses earned by your frontline IBOs,
The Amway Independent Business Owner Compensation using the same Schedule, must be subtracted from the
Plan rewards several levels of achievement. Each IBO is gross amount to arrive at your net Performance Bonus.
150 150 150 300 = 6%
an independent businessperson, whose individual In addition, you will at least be at the same percentage
450 450 450 900
success depends on his or her own selling efforts and bracket as your downline. Note: Experience has shown
the selling efforts of those he or she registers. Gross that IBOs who register others generally have higher
income from your independent business is based on a average volume than those who do not. Personal Group
combination of immediate income – retail markup on 150 150
= 3%
sales to customers – plus any bonuses earned on your 450 450
overall sales volume. PV 500 7500
22,500 IBOs receiving a Performance Bonus on downline volume must be in
BV 1500
compliance with the Rules of Conduct, including the Customer Volume
Your Group Volume = Requirement. Acceptance of such Performance Bonus ­constitutes your
Personal Volume + the Pass-up Volume affirmation of compliance with this requirement.
from each of your frontline IBOs.
Example reflects a BV to PV ratio of 3:1.

For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below
was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including: was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including:
customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team. customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team.

A-1 A-2
 THE PLAN | HOW YOU EARN INCOME THE PLAN | AWARDS AND QUALIFICATIONS
How to Interpret a Performance Bonus Statement To recognize and reward your achievements, Amway Silver Producer
offers an extensive award and bonus system. The
QUALIFY as a Silver Producer each time you achieve
North America Corporation awards pins and plaques for business-
Performance Bonus Statement any of the following:
building achievements and provides additional
For the Month of September 2022
Currency: USE United States Dollar - Amway recognition in written publications and elsewhere. Amway 1. Generate Group PV of at least 7,500 PV, or
continually updates the bonuses and awards to 2. Generate Group PV of at least 2,500 PV but less than
To: 1234567 You
PO BOX 33333 encourage growth and performance. Refer to current 7,500 PV and register or foster-register 1 North
CITY, ST 11111-0422 materials or contact your upline with questions. American group which qualifies at the 25%
Rules of Conduct require all IBOs who receive a Performance Bonus on downline volume to be in compliance with To be eligible for these awards and bonuses, you must be Performance Bonus level, or
the Rules of Conduct, including the Customer Volume Rule. Acceptance of any Performance Bonus on downline volume
constitutes your affirmation of compliance with these rules. In order to ensure compliance, your bonus may have in compliance at all times with the Amway Independent 3. Register or foster-register at least 2 North American
been paid directly to your upline Platinum for handling. Business Owner Compensation Plan and the IBO Rules of groups, each of which qualifies at the 25%
If you have questions regarding this, please consult with your upline Platinum.
Conduct. All achievement awards and bonuses are Performance Bonus level. Internationally registered
subject to review and approval by Amway prior to being groups may not be used for Silver Producer
IBO Name Cls PV BV % Bonus/ A/R Net qualification.
Number Diff. Bonus
granted. The following pages focus on each of the IBO
awards and their qualification requirements. The eligible ELIGIBLE to receive:
Personal Volume: 2 150.00 450.00➎ 12➒ 54.00 0.00 54.00 bonuses referred to on these pages are explained in more
detail in the “Monthly Bonuses” and “Annual Bonuses” • A 25% Performance Bonus.
DIFFERENTIAL ON PERSONALLY SPONSORED WITH VOLUME
sections that follow. • A Silver Producer pin.
15554 IBO, A 9 450.00 ➊ 1350.00➏ 6➓ 81.00 81.00 • Other recognition, such as acknowledgment in an
Fiscal Year/Performance Year IBO publication.
25551 IBO, B 9 100.00 ➋ 300.00➐ 9 27.00 27.00
20949 IBO, C 9 600.00 ➌ 1800.00➑ 3 54.00 54.00 September 1 – August 31
Gold Producer
Group Totals: 1300.00 ➍ 3900.00 216.00 0.00 216.00 Volume Equivalency (Founders Award) QUALIFY as a Gold Producer if you:
If you qualify at the 25% Performance Bonus level for 10 or Achieve Silver Producer qualification for any 3 months of
11 months of the fiscal year and generate at least 108,000 the fiscal year.
Total PV, you are then considered qualified for all 12
months by virtue of Volume Equivalency. This also qualifies In the case of your first-time Gold Producer qualification,
Key to the Calculations
as a 12 month group. you may use a rolling 12-month period to achieve any 3
qualified months.
Finding the Performance Bonus % Calculating Your Bonus Amounts Total PV includes all personal PV as well as PV from all
Performance downline IBOs. Internationally registered groups may not be used for
IBO Bonus Element Group PV Performance Bonus % PB% Personal BV Group BV Gold Producer qualification.
YOU Personal 1,300.00 ➍ 12%➒ .12 x 450.00➎ = 54.00 25% Sponsor ELIGIBLE to receive:
A Differential 450.00 ➊ 12% - 6% = 6%➓ .06 x 1,350.00➏ = 81.00 QUALIFY as a 25% Sponsor if you: Register one or more • A 25% Performance Bonus.
B Differential 100.00 ➋ 12% - 3% = 9% .09 x 300.00➐ = 27.00 North American groups that reach the 25% Bonus level.
• A Gold Producer pin.
C Differential 600.00 ➌ 12% - 9%= 3% .03 x 1,800.00➑ = 54.00 ELIGIBLE to receive: • Other recognition, such as acknowledgment in an IBO
• A 25% Performance Bonus. publication.
Your Total Gross Monthly Performance Bonus $216.00
Platinum
Becoming a Platinum is an important milestone. The
Platinum is viewed as the leader of his or her own group.
As a Platinum, you train, supply and motivate your group,
teaching them to assume the leadership responsibilities in
their own groups. In short, becoming a Platinum means
you’re entering a new phase of the business. You continue
doing the things that made you Platinum – registering
IBOs and retailing products – but now you’re also a
recognized leader with new, challenging and exciting
responsibilities.

For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below
was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including: was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including:
customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team. customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team.

A-3 A-4
 THE PLAN | AWARDS AND QUALIFICATIONS THE PLAN | AWARDS AND QUALIFICATIONS
QUALIFY as a Platinum if you: ELIGIBLE to receive: Total PV includes all Personal PV as well as PV of all Diamond
• A 25% Performance Bonus. downline IBOs.
Achieve Silver Producer qualification for 6 months of the QUALIFY as a Diamond if you:
fiscal year. • A Ruby pin and other recognition, such as ELIGIBLE to receive:
acknowledgment in an IBO publication (provided Register, internationally register or foster-register 6 or
In the case of your first-time Platinum qualification, you • A 25% Performance Bonus. more groups (3 must be North American), each of which
you are a qualified Platinum).
may use a rolling 12-month period to achieve 6 qualified • A Founders Sapphire pin. qualifies at the 25% Performance Bonus level for at least
• The monthly Ruby Bonus.
Silver producer months, 3 of which must be consecutive. • Participation in the annual discretionary rewards 6 months of the fiscal year.
Founders Ruby program including Growth Incentives Program and
To requalify as Platinum, you must achieve at least 6 ELIGIBLE to receive:
Core Plus.
qualified Silver producer months within the fiscal year. QUALIFY as a Founders Ruby if you: • A 25% Performance Bonus.
• Other recognition, such as acknowledgment in an
Internationally registered groups may not be used for Achieve Ruby qualification for all 12 months of the IBO publication. • A Diamond pin.
Silver Producer qualification. fiscal year. Emerald • The annual Emerald and Diamond Bonuses.*
ELIGIBLE to receive: • The annual Diamond Plus Bonus, provided you have 7
ELIGIBLE to receive: QUALIFY as an Emerald if you:
or more qualified North American groups.*
• A 25% Performance Bonus. • A 25% Performance Bonus. Achieve Platinum Qualification and register, • Participation in the Emerald Profit Sharing Bonus.*
• A Platinum pin. • A Founders Ruby pin. internationally register or foster-register 3 or more • Participation in the annual discretionary rewards
• Other recognition, such as acknowledgment in an • Participation in the annual discretionary rewards program groups, each of which qualify at the 25% Performance program including Growth Incentives Program and
IBO publication. including Growth Incentives Program and Core Plus. Bonus level for at least 6 months of the fiscal year. Core Plus.
• Participation in the annual discretionary rewards • The monthly Ruby Bonus. ELIGIBLE to receive: • Other recognition, such as acknowledgment in an
program including Growth Incentives Program and • Other recognition, such as acknowledgment in an
Core Plus. • A 25% Performance Bonus. IBO publication.
IBO publication.
• An invitation to New Platinum Conference, a two-day, • An Emerald pin.
Founders Diamond
expenses-paid business seminar with world-class Sapphire • The annual Emerald Bonus.*
training and the opportunity to connect with Amway • Participation in the Emerald Profit Sharing Bonus.* QUALIFY as a Founders Diamond if you:
QUALIFY as a Sapphire if you:
staff and executives. To receive an invitation, an IBO • Participation in the annual discretionary rewards Achieve Emerald Bonus qualification and register,
must also meet the qualification requirements for New Achieve one of the following for 6 months: program including Growth Incentives Program and internationally register or foster-register 6 or more
Platinum Conference. Core Plus. groups, each of which qualifies at the 25%
1. Generate Group PV of at least 2,500 PV, and register
or foster-register 2 North American groups, each of • Other recognition, such as acknowledgment in an Performance Bonus level for all 12 months of the fiscal
Founders Platinum
which qualifies at the 25% Performance Bonus level, or IBO publication. year; a group can also qualify by virtue of Volume
QUALIFY as a Founders Platinum if you: 2. Register or foster-register 3 or more North American Equivalency, or
Founders Emerald
Achieve Silver Producer qualification for all 12 months of groups, each of which qualifies at the 25% ELIGIBLE to receive:
the fiscal year. Performance Bonus level. QUALIFY as a Founders Emerald if you: • A 25% Performance Bonus.
You can also qualify by virtue of Volume Equivalency. Internationally registered groups may not be used for Achieve Emerald Qualification for all 12 months of the • The Founders Diamond pin.
Sapphire qualification. fiscal year. • The annual Emerald and Diamond Bonuses.*
Internationally registered groups may not be used for
Founders Platinum qualification. ELIGIBLE to receive: You can also qualify by virtue of Volume Equivalency. • The annual Diamond Plus Bonus, provided you have 7
• A 25% Performance Bonus. or more qualified groups.*
ELIGIBLE to receive: ELIGIBLE to receive:
• A Sapphire pin. • Participation in the Emerald Profit Sharing Bonus.*
• A 25% Performance Bonus. • A 25% Performance Bonus.
• Participation in the annual discretionary rewards program • Participation in the annual discretionary rewards
• A Founders Platinum pin. • A Founders Emerald pin. program including Growth Incentives Program and
including Growth Incentives Program and Core Plus.
• Participation in the annual discretionary rewards • The annual Emerald Bonus.* Core Plus.
• Other recognition, such as acknowledgment in an
program including Growth Incentives Program and • Participation in the Emerald Profit Sharing Bonus.* • Other recognition, such as acknowledgment in an
IBO publication.
Core Plus. • Participation in the annual discretionary rewards IBO publication.
• Other recognition, such as acknowledgment in an Founders Sapphire program including Growth Incentives Program and
IBO publication. Core Plus.
QUALIFY as a Founders Sapphire if you either:
• Other recognition, such as acknowledgment in an
Ruby 1. Achieve Sapphire qualification for all 12 months of the IBO publication.
QUALIFY as a Ruby if you: fiscal year, or
2. Achieve Sapphire qualification for 10 or 11 months
Generate Ruby PV volume of at least 15,000 PV in a
of the fiscal year and generate at least 252,000
single month.
Total PV.
*
Internationally registered groups may be used for awards of Emerald through Founders Diamond. They may not be used for
qualification of these bonuses. Participation is subject to meeting the requirements of each bonuses. See page A20 for bonus details.

For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below
was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including: was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including:
customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team. customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team.

A-5 A-6
 THE PLAN | AWARDS AND QUALIFICATIONS THE PLAN | AWARDS AND QUALIFICATIONS
Executive Diamond Double Diamond Triple Diamond ELIGIBLE to receive:
QUALIFY as an Executive Diamond if you: QUALIFY as a Double Diamond if you: QUALIFY as a Triple Diamond if you: • A 25% Performance Bonus.
Achieve Founders Diamond in any market and sponsor Achieve Founders Diamond in any market and sponsor Achieve Founders Diamond in any market and sponsor • A Founders Triple Diamond pin.
6 or more groups that qualify Founders Platinum and 8 or more groups that qualify Founders Platinum and 10 or more groups that qualify Founders Platinum and • A one-time cash award for first time qualification and
generate at least 10 Qualification Credits based on generate at least 25 Qualification Credits based on generate at least 43 Qualification Credits based on a two-time cash award for consecutive qualification.
Global Award Recognition table.** Global Award Recognition table.** Global Award Recognition table.* • Participation in the Emerald Profit Sharing Bonus.*
ELIGIBLE to receive: ELIGIBLE to receive: ELIGIBLE to receive: • The annual Emerald, Diamond and Diamond Plus
Bonuses.*
• A 25% Performance Bonus. • A 25% Performance Bonus. • A 25% Performance Bonus.
• Participation in the annual discretionary rewards
• An Executive Diamond pin. • A Double Diamond pin. • A Triple Diamond pin.
program including Growth Incentives Program and
• A one-time cash award for first time qualification and a • A one-time cash award for first time qualification and • A one-time cash award for first time qualification and Core Plus.
two-time cash award for consecutive qualification. a two-time cash award for consecutive qualification. a two-time cash award for consecutive qualification.
• Other recognition, such as acknowledgment in an
• Participation in the Emerald Profit Sharing Bonus.* • Participation in the Emerald Profit Sharing Bonus.* • Participation in the Emerald Profit Sharing Bonus.**
IBO publication.
• The annual Emerald, Diamond and Diamond Plus • The annual Emerald, Diamond and Diamond • The annual Emerald, Diamond and Diamond Plus
Bonuses.* Plus Bonuses.* Bonuses.* Crown
• Participation in the annual discretionary rewards • Participation in the annual discretionary rewards • Participation in the annual discretionary rewards
program including Growth Incentives Program and program including Growth Incentives Program and program including Growth Incentives Program and QUALIFY as a Crown if you:
Core Plus. Core Plus. Core Plus. Achieve Founders Diamond in any market and sponsor
• Other recognition, such as acknowledgment in an • Other recognition, such as acknowledgment in an • Other recognition, such as acknowledgment in an 12 or more groups that qualify Founders Platinum and
IBO publication. IBO publication. generate at least 64 Qualification Credits based on
IBO publication.
Global Award Recognition table.**
Founders Double Diamond Founders Triple Diamond ELIGIBLE to receive:
Founders Executive Diamond
QUALIFY as a Founders Double Diamond if you: QUALIFY as a Founders Triple Diamond if you: • A 25% Performance Bonus.
QUALIFY as a Founders Executive Diamond if you:
Achieve Founders Diamond in any market and sponsor Achieve Founders Diamond in any market and sponsor • A Crown pin.
Achieve Founders Diamond in any market and sponsor
8 or more groups that qualify Founders Platinum and 10 or more groups that qualify Founders Platinum and • A one-time cash award for first time qualification and a
6 or more groups that qualify Founders Platinum and
generate at least 34 Qualification Credits based on generate at least 52 Qualification Credits based on two-time cash award for consecutive qualification.
generate at least 16 Qualification Credits based on
Global Award Recognition table.** Global Award Recognition table.** • Participation in the Emerald Profit Sharing Bonus.*
Global Award Recognition table.**
ELIGIBLE to receive: • The annual Emerald, Diamond and Diamond Plus
ELIGIBLE to receive:
• A 25% Performance Bonus. Bonuses.*
• A 25% Performance Bonus.
• A Founders Double Diamond pin. • Participation in the annual discretionary rewards
• A Founders Executive Diamond pin. program including Growth Incentives Program and
• A one-time cash award for first time qualification and
• A one-time cash award for first time qualification and a Core Plus.
a two-time cash award for consecutive qualification.
two-time cash award for consecutive qualification. • Display of a formal portrait in the “Hall of Achievement”
• Participation in the Emerald Profit Sharing Bonus.*
• Participation in the Emerald Profit Sharing Bonus.* at Amway Headquarters.
• The annual Emerald, Diamond and Diamond Plus
• The annual Emerald, Diamond and Diamond Plus • Other recognition, such as acknowledgment in an
Bonuses.*
Bonuses.* IBO publication.
• Participation in the annual discretionary rewards
• Participation in the annual discretionary rewards
program including Growth Incentives Program and
program including Growth Incentives Program and
Core Plus.
Core Plus.
• Other recognition, such as acknowledgment in an
• Other recognition, such as acknowledgment in an
IBO publication.
IBO publication.

*
Internationally registered groups may be used for awards of Emerald through Founders Diamond. They may not be used for Refer to Global Award Recognition table on Page A-11.
*

qualification of these bonuses. Participation is subject to meeting the requirements of each bonuses. See page A20 for bonus details. **
Internationally registered groups may be used for awards of Emerald through Founders Diamond. They may not be used for
**
Refer to Global Award Recognition table on Page A-11. qualification of these bonuses. Participation is subject to meeting the requirements of each bonuses. See page A20 for bonus details.

For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below
was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including: was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including:
customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team. customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team.

A-7 A-8
 THE PLAN | AWARDS AND QUALIFICATIONS THE PLAN | GLOBAL AWARDS AND QUALIFICATIONS
Founders Crown Founders Crown Ambassador
QUALIFY as a Founders Crown if you: QUALIFY as a Founders Crown Ambassador if you: Global Award Qualification Criteria
Achieve Founders Diamond in any market and sponsor Achieve Founders Diamond in any market and sponsor Global Award Recognition recognizes IBOs using a combination of leadership development in width and depth. Width
12 or more groups that qualify Founders Platinum and 14 or more groups that qualify Founders Platinum and is measured in Founders Platinum (FP) groups, which does not include internationally sponsored groups or groups
generate at least 76 Qualification Credits based on generate at least 100 Qualification Credits based on without a Founders Platinum. Depth is measured in Qualification Credits (QCs) according to the Qualification Credits
Global Award Recognition table.** Global Award Recognition table.** schedule below. Multiple businesses, #1 and #2, must be at least Founders Platinum for a group to contribute up to one
ELIGIBLE to receive: ELIGIBLE to receive: Qualification Credit. In order for a Founders Platinum to contribute more than one Qualification Credit, the multiple
business must be an Emerald Bonus Recipient in the local market. Qualification Credits from Founders Platinums are
• A 25% Performance Bonus. • A 25% Performance Bonus.
limited to 3 per group. Qualification levels are determined through a combination of Founders Platinum groups and
• A Founders Crown pin. • A Founders Crown Ambassador pin. Qualification Credits according to the Global Award Recognition Qualification Table below.
• A one-time cash award for first time qualification and • A one-time cash award for first time qualification and
a two-time cash award for consecutive qualification. a two-time cash award for consecutive qualification.
• Participation in the Emerald Profit Sharing Bonus.* • Participation in the Emerald Profit Sharing Bonus.*
DOWNLINE QUALIFIER Qualification Credits
• The annual Emerald, Diamond and Diamond Plus • The annual Emerald, Diamond and Diamond Plus
Bonuses.* Bonuses.*
Founders Platinum (FP) 1.0
• Participation in the annual discretionary rewards • Participation in the annual discretionary rewards
program including Growth Incentives Program and program including Growth Incentives Program and Emerald Bonus Recipient (EBR)* 1.5
Core Plus. Core Plus.
Diamond Bonus Recipient (DBR)* 3.0
• Other recognition, such as acknowledgment in an • Other recognition, such as acknowledgment in an
IBO publication. IBO publication. In-Market Founders Diamond** 6.0

Crown Ambassador Global Award Recognition *

Must also achieve Founders Platinum.
**
Founders Diamonds with 6 Founders Platinum groups in-market.
QUALIFY as a Crown Ambassador if you: The Global Award Recognition program provides IBOs a
Achieve Founders Diamond in any market and sponsor single path to qualification for IBOs achieving Executive
14 or more groups that qualify Founders Platinum and Diamond and above. The program recognizes IBOs for
generate at least 88 Qualification Credits based on developing profitable and sustainable leaders both in
Global Award Recognition table.** width and in depth.

ELIGIBLE to receive:
• A 25% Performance Bonus. GROUP A
DBR FP FP FP FP EBR
• A Crown Ambassador pin.
• A one-time cash award for first time qualification and 3 1 1 1 1 1.5
a two-time cash award for consecutive qualification.
• Participation in the Emerald Profit Sharing Bonus.*
• The annual Emerald, Diamond and Diamond Plus FP FP FP FP FP FP FP FP
Bonuses.*
1 1 1 1 1
• Participation in the annual discretionary rewards
program including Growth Incentives Program and
Core Plus. 6 QUALIFICATION CREDITS 7.5 QUALIFICATION CREDITS
From GROUP A From Other Groups
• Display of a formal portrait in the “Hall of
(Group A generates 6 Founders Platinum Credits (6 Founders Platinum Credits and 1.5 EBR
Achievement” at Amway Headquarters. 3 from DBR and 3 from FP Downlines) and 3 from other FP groups)
• Other recognition, such as acknowledgment in an
IBO publication.
13.5 TOTAL QUALIFICATION CREDITS

Internationally registered groups may be used for awards of Emerald through Founders Diamond. They may not be used for
*

qualification of these bonuses. Participation is subject to meeting the requirements of each bonuses. See page A20 for bonus details.
**
Refer to Global Award Recognition table on Page A-11.

For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below
was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including: was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including:
customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team. customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team.

A-9 A-10
 THE PLAN | GLOBAL AWARDS AND QUALIFICATIONS THE PLAN | MONTHLY BONUSES

Global Award Recognition Qualification Table 2. Register 2 or more North American groups that
qualify at the 25% Performance Bonus level for the
Qualification Max QC per
Award Level FP Groups month.
Credits (QC) Group

Founders Crown Ambassador 14+ 100 Even if you don’t meet the qualifications for a given
month, any Leadership Bonus amounts based on your
Crown Ambassador 14+ 88 Up to 12 QC group’s BV (including your own) are added to the
Founders Council per Group
bonus amounts being rolled up your Line of
Founders Crown 12+ 76
Sponsorship.
Crown 12+ 64 Factors Used in the Calculations. There are three
factors or elements that Amway uses in arriving at the
Founders Triple Diamond 10+ 52 monthly Leadership Bonus for each eligible IBO:
A. The percentage. Currently 6%. The group BV of
Triple Diamond 10+ 43 Up to 9 QC IBOs involved is multiplied by 6% to determine
Leader of Leaders per Group bonus amounts used in the calculations.
Founders Double Diamond 8+ 34
B. BV/PV Ratio. The weighted average ratio in use as
Double Diamond 8+ 25 of September 1, 2022, is 3.36. The following
formula yields the maximum Leadership Bonus
Founders Executive Diamond 6+ 16 Up to 6 QC Adjustment (the Published LBA).
New Global Leader per Group
Executive Diamond 6+ 10
25% qualifying PV 7, 5 0 0
times the current weighted average ratio x 3.36

“official” qualifying BV = 25,200

Ruby Bonus Monthly Leadership Bonus
IBOs who generate at least 15,000 Personal Group/ In the course of building your business, you may register 25,200 x 6% =$1,512
Ruby PV in one month receive a Ruby Bonus equal to and train an IBO until that IBO reaches the Silver
2% of their net Personal Group/Ruby Volume for that Producer level or above. Amway believes this hard work, $1,512 is the actual Published Leadership Bonus
month. Ruby Volume includes Personal Volume plus ability and performance merit reward. So to help Adjustment in effect as of September 1, 2022.
Pass-up Volume from any downline 25% Sponsors, compensate you for the time and effort involved and to For simplicity in the following examples, we are using a “Published LBA” of
$1,350 – which is based on an average BV/PV ratio of 3:1 (one point of PV
Silver Producers and/or Gold Producers who have not provide additional incentive for you to continue equals $3 BV). The circles in the examples show the PV above the line, the
qualified at the 25% Performance Bonus level for the developing Silver Producers and above, the Amway BV below. Most of them reflect the average ratio, but not all do so – in order
to show a variety of calculations.
month; downline Platinum volume is not included. Independent Business Owner Compensation Plan
provides monthly Leadership Bonus payments.
C. Leadership Bonus Adjustment (LBA). The LBA is a
The Leadership Bonus is computed from the bottom up, credit/debit amount used in calculating how much
never from the top down. This means that your of the bonus rolled up to an IBO is applied to his or
Leadership Bonus is based on the performance of your her bonus and how much is rolled up to his or her
downline group(s); at the same time, your performance Sponsor. The Published LBA is the maximum
contributes to the Leadership Bonus for your Sponsor. adjustment used in the calculations. If the initial
Amway calculates and pays all Leadership Bonuses LBA within a group is less than the Published LBA, it
according to the following rules. continues to grow as bonus amounts are rolled up
the group until the Published LBA is reached. At
Rules for calculating the North American that point, the Published LBA becomes the
Leadership Bonus minimum bonus amount that must be rolled up to
Eligibility. You qualify for the Leadership Bonus if each successive IBO in a Line of Sponsorship.
you either: Leadership bonuses are computed from the bottom
1. Register one North American group that qualifies at up. Note that the LBA continues to increase until it
the 25% Performance Bonus level and you generate reaches the Published LBA level.
an additional Award Volume of at least 2,500 PV in
the same month, or

For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below
was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including: was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including:
customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team. customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team.

A-11 A-12
 THE PLAN | MONTHLY BONUSES THE PLAN | MONTHLY BONUSES

Rule 2b Example 1
2. Calculations for each subsequent upline IBO who
is eligible for the Leadership Bonus depends on $1,350 to your Sponsor Your bonus
the amount of their BV relative to the bonus 2500 amount is less than the amount rolled
$2,025 rolls up You received the Rule 1 Example A YOU
7500 up to you (7,500 BV x .06 = $450).Use
YOU to you Published LBA, so at amount rolled up to them: calculation below.
Note: Bonus calculations roll up through non-qualified IBOs.
least that amount a. If 6% of your BV equals or exceeds the bonus
will roll up to your
Sponsor.
amount rolled up from your downline or the
$1,440 rolls up $1,350 Initial LBA Full bonus amount rolls
YOU to you Published LBA (whichever is smaller), you keep 7500
Starter up(22,500 BV x .06 = $1,350)
LBA is now
the bonus amount rolled up to you and the 22500
$2,025 Doesn’t qualify Amount rolled up to you $1,350
2000 to participate, but $2,025 bonus amount based on your BV is rolled up to
6000 contributes $360 to the 0 $1,440 Bonus amount Add 6% of your BV +450
your Sponsor.
roll up 0 doesn’t stop here Total $1,800
(6,000 BV x .06 = $360) Subtract the LBA -1,350
$1,440 Doesn’t qualify to Rule 2a Example 1 Your Leadership Bonus $450
500 participate, but contributes
$1,665 Doesn’t qualify LBA is now $90 to the roll up
1750 to participate, but $1,665
1500 $1,368 to your Sponsor Your bonus amount
(1,500 x .06 = $90) 7600 equals or exceeds amount rolled up to you
5250 contributes $315 to the YOU (22,800 BV x .06 = $1,368). You keep the
roll up 22800
7500 $1,350 The full bonus amount rolled up to you.
(5,250 BV x .06 = $315) amount rolls up Rule 2b Example 2
22500 (22,500 BV x .06 = $1,350)
$900 to your Sponsor Your bonus
$1,350 The full bonus Initial LBA is Starter for this Group $1,350 Equals Published LBA 4000 amount is less thanthe amount rolled
7500 amount rolls up $1,350 
7500 Full bonus amount rolls up YOU
Starter 12000 up to you(12,000 BV x .06 = $720). Use
22500 (22,500 BV x .06 = $1,350) 6000 Hasn’t reached the 25% 22500 (22,500 BV x .06 = $1,350)
calculation below.
Performance Bonus level; not
18000 included in bonus calculations
Starter Rule 2a Example 2 $900 Initial LBA less than published LBA
7500 Full bonus amount rolls up
Starter
15000 (15,000 BV x .06 = $900)
$1,350 to your Sponsor Your bonus
7500 amount is less than the amount rolled up Amount rolled up to you $900
Rule 1 Example B YOU
The Calculations 22500 to you (22,500 BV x .06 = $1,350).* Add 6% of your BV +720
The first (lowest in diagram) IBO that reaches 7,500 PV in each Use calculation below. Total 1,620
1. The Leadership Bonus starts with the IBO
furthest downline in each group of a Line group of the LOS becomes the “Starter” for that group. Subtract the Initial LBA -900
$1,368 Bonus roll up exceeds published Your Leadership Bonus $720
of Sponsorship (LOS) who qualified at the 7600
Starter LBA Full bonus amount rolls up
25% Performance Bonus Level for the 22800 (22,800 BV x .06 = $1,368)
month. That IBO is called the “Starter.” YOU
Amount rolled up to you $1,368 Rule 2b Example 3
Of the Starter’s BV, 6% is rolled up to his
Add 6% of your BV or
or her immediate Sponsor. That Sponsor 7500 6000 the Published LBA +1,350
may keep all, some or none of the $1,350 to your Sponsor Your bonus amount
22500 18000 4000 does not equal or exceed amount rolled up to
Total $2,718
amount rolled up, depending on his or YOU you (12,000 BV x .06 = $720). You keep most
Subtract the LBA* -1,350 12000
her PV and BV. of the amount rolled up to you.
Your Leadership Bonus $1,368
7500 1500 0 5000
22500 4500 0 15000
*
Remember, the Published LBA is the maximum
amount subtracted in this type of calculation. $1,350 Initial LBA Full bonus amount
7500 rolls up(22,500 BV x .06 = $1,350)
Starter
Starter 7500 7500 1000 22500
22500 22500 3000
b. If 6% of your BV is less than the bonus amount
Starter No IBO in rolled up from your downline or the Published
Starter 6000 this Group LBA (whichever is smaller), the bonus amount
18000 qualified as
a Starter based on your BV or the Published LBA is added
to the bonus amount rolled up to you and the
LBA (or Published LBA, whichever is smaller) is
subtracted. You keep the difference from that
subtraction; the LBA (or Published LBA) amount
is rolled up to your Sponsor.

For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below
was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including: was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including:
customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team. customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team.

A-13 A-14
 THE PLAN | MONTHLY BONUSES THE PLAN | MONTHLY BONUSES

Rule 3a Example 1 How to Interpret a Leadership Bonus Statement

Note: If you are eligible for the Leadership
$1,350 to your Sponsor Your bonus
Bonus based on two or more downline groups equals or exceeds the average of the
and the LBA from at least one of those groups amounts rolled up to you. You keep North America
7500 the $2,700.00 rolled up to you.
equals or exceeds the Published LBA, the full Leadership Bonus Statement
22500 (22,500 BV x .06 = $1,350) For the Month of September 2022
published LBA must roll upline. (1,350 + 1,350 = 2,700; Currency: USD United States Dollar - Amway
YOU 2,700 ÷ 2 = $1,350)
To: 1234 IBO A
Rule 2b Example 4 878 Parkway Published Leadership Bonus Adjustment Amount: USD ➊ 1,350.00*
Anywhere, USA
For Multiple Groups
7500 7500
$1,350 Initial LBA $1,350 Initial LBA Point Business ------- Adjustments ------- Net
22500 22500
110 Number IBO Name Value Volume Leadership From Downline To upline Bonus
YOU Starter Starter
330
1234 IBO A 4150.00 12,450.00 ➋ 603.00 603.00
Full bonus amount rolls up Full bonus amount rolls up 1234b IBO B 900.00 2,700.00 ➍ 162.00 ➎ 1,350.00 ➏ 1,512.00
(22,500 BV x .06 = $1,350) (22,500 BV x .06 = $1,350) Total........: 162.00 1,350.00 603.00 ➌ 909.00
7500 $1,170 Initial 7500 $1,350 Initial
19500 LBA 22500 LBA
b. If 6% of your BV is less than the average bonus
Starter Starter amount rolled up from your downline groups,
the bonus amount based on your BV is added to $1,350 to A’s Sponsor Your Amount rolled up to A $1,512.00 ➋ The difference between 6%
Full bonus amount rolls up 4150 bonus amount is less than of A’s BV and amount rolled
the total amounts rolled up to you and the LBA IBO A Add 6% of A’s BV +747.00
(19,500 BV x .06 = $1,170) 12450 the amount rolled up to you. up to A’s Sponsor [1350 - 747
(the average roll up), is subtracted. You keep the (12,450.00 x .06 = $747.00)Use Total $2,259.00 = 603]. Used in the computer
Amount rolled up to you $2,520.00 difference from that subtraction; the LBA calculation at right. Subtract the LBA ➊ -1,350.00 program, but not needed
➌ A’s Leadership Bonus $909.00 in the manual calculations
Add 6% of your BV +19.80 amount is rolled up to your Sponsor. shown at left.
Total $2,539.80
$1,512 ➏ Total rolled up to A
Subtract the LBA* -1,350.00 900 (Exceeds Published LBA) ➎ Bonus amount(s) rolled up
Your Leadership Bonus $1,189.80 Rule 3b Example 1 IBO B from recipient’s second level
2700 B doesn’t qualify to participate,
but contributes 6% to the roll up. or lower are combined in the
$1,230 to your Sponsor Your (2,700.00 x .06 = $162.00) ➍ “Adjustments from Downline”
bonus amount is less than the column. Only volumes from
2500 frontline IBOs are shown on
3. If you are eligible for the Leadership Bonus based on 7500
average rolled up to you.
(7,500 BV x .06 = $450) the statement.
2 or more downline groups and the LBA from each $1,350 Initial LBA
IBO C 7500 Full bonus amount rolls up.
group is less than the Published LBA, your bonus YOU
Starter 22500 (22,500.00 x .06 = $1,350.00)➎
calculation depends on the amount of your BV
relative to the average of the bonus amounts rolled
up to you: 7500 $1,200 Initial 7500 $1,260 Initial
20000 LBA 21000 LBA
a. If 6% of your BV equals or exceeds the average
500
bonus amount rolled up from your downline Starter 1000 Starter
groups, you keep the bonus amounts rolled up to
Full bonus amount rolls up Full bonus amount rolls up
you and the bonus amount based on your BV is (20,000 BV x .06 = $1,200) (21,000 BV x .06 = $1,260)
rolled up to your Sponsor.
Amount rolled up to you $2,460.00
Add 6% of your BV +450.00
Total $2,910.00
Subtract the LBA
*
In this example, we are using a Published Leadership Bonus Adjustment of $1,350. ($1,200+$1,260)/2 -1,230.00
Your Leadership Bonus $1,680.00

Foster Leadership Bonus

The Foster Leadership Bonus is calculated similar
to the Monthly Leadership Bonus. Please contact
your Leader Growth Solutions Advisor for
further information.

For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below
was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including: was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including:
customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team. customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team.

A-15 A-16
 THE PLAN | MONTHLY BONUSES THE PLAN | MONTHLY BONUSES
Monthly Depth Bonus Rules for Calculating the North American Monthly The Calculations Example 1
Depth Bonus
In building your business, you may devote time and The Monthly Depth Bonus is calculated separately for
effort to help and encourage your North American Eligibility. You qualify for the Monthly Depth Bonus each of your qualified Groups.
frontline Silver Producers and above to register and when both of these conditions are met: YOU A, B and C each fulfills
develop downline Silver Producers of their own. To 1. The base amount of your Monthly Depth Bonus from the minimum guarantee
1. You register 3 or more North American groups (your
encourage and reward these efforts, the Amway a single Group is 1% of the BV of all qualified to your upline Monthly
frontline IBOs) that qualify at the 25% Performance
Independent Business Owner Compensation Plan downline IBOs, starting with your second level and Depth Bonus qualifier
Bonus level for the month and by generating the MDA.
provides Monthly Depth Bonus payments. extending down to the second level below the next
2. At least one of those IBOs registers one or more downline IBO who qualifies for the Monthly Depth C
(22,500 x .01 = $225)
A B
The Monthly Depth Bonus is computed from the top North American groups (your second level IBOs) Bonus. 7500 7500 7500
that qualify at the 25% Performance Bonus level 22500 22500 Your frontline IBOs
down, starting with your second level qualified IBOs 2. When that Group’s base amount equals or exceeds 22500
and extending downline until reaching the first level for the month.
the MDA, the MDA becomes the guaranteed
that owes a Monthly Depth Bonus to another IBO. The Note: International groups do not count toward minimum amount.
bonus is calculated separately for each of your eligibility. a. If 1% of the BV of the frontline Leader of the Group D
qualified groups. 7500 Your Monthly Depth
Factors Used in the Calculations. There are three equals or exceeds the MDA, you keep the entire
22500 Bonus is $900 – 1% of
When you qualify for a Monthly Depth Bonus, your factors Amway uses in arriving at the Monthly Depth base amount from that Group.
the BV of D, E, F and G.
upline Depth Bonus recipient is guaranteed a minimum Bonus for each eligible IBO, just as for the Leadership b. If 1% of the BV of the frontline Leader of the Group (22,500 x 4 x .01 = 900)
Depth Bonus amount from each of your qualified Bonus. is less than the MDA, the shortfall is taken from the
groups. This minimum guaranteed amount is either the Group’s base amount to fulfill the guaranteed
A. The percentage. Currently 1%. The group BV of E G
Monthly Depth Bonus Adjustment (MDA), or the “base minimum and you keep the balance. F
IBOs involved within each group is multiplied by 1% 7500 7500 7500 Your second level
amount” of your Monthly Depth Bonus from that group 3. When that Group’s base amount is less than the
to determine the base amount used in the bonus 22500 22500 22500
– whichever is less. (The base amount is the total MDA, the base amount from the Group becomes the
calculations.
Monthly Depth Bonus from a group prior to any guaranteed minimum amount.
adjustment; see calculations section for details.) B. The BV/PV ratio. Exactly the same ratio, based on
the same data, used for the Leadership Bonus. a. If 1% of the BV of the frontline Leader of the Group
C. Monthly Depth Bonus Adjustment (MDA). The equals or exceeds this guaranteed minimum, you
MDA is exactly one-sixth of the Published Leadership keep the entire base amount from that Group.
25% qualifying PV 7,500
times the current weighted average ratio x 3.36 Bonus Adjustment. (It is calculated the same way as b. If 1% of the BV of the frontline Leader of the Group
the LBA, but using 1% instead of 6%.) is less than this guaranteed minimum, the shortfall
“official” qualifying BV = 25,200 is taken from the Group’s base amount to fulfill the
guaranteed minimum and you keep the balance.
25,200 x 1% =$252
4. International Groups are not included for
$252 is the Monthly Depth Bonus Adjustment (MDA) qualification or calculation of Monthly Depth Bonus.
in effect starting September 1, 2022.
Monthly Depth Bonus Examples
*
In the examples, we are using a Monthly Depth Bonus Adjustment
of 225, which is based on an average ratio of 3:1 (1 point of PV For simplicity in following these examples, we are using
equals $3 of BV). The circles in the examples in the next section an MDA of $225 – which is based on an average BV/PV
show the PV above the line and the BV below the line. Most of them ratio of 3:1 (one point of PV equals $3 BV). The circles in
reflect the average ratio.
the examples show the PV above the line, the BV below.

Amway calculates and pays all Monthly Depth Bonuses

according to the following rules.

For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below
was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including: was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including:
customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team. customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team.

A-17 A-18
 THE PLAN | MONTHLY BONUSES THE PLAN | ANNUAL BONUSES

Example 2 Each year, Amway sets aside money to fund three Diamond Plus Bonus
annual bonuses: the Emerald, Diamond and Diamond
Qualified Diamonds and above who personally or
Plus Bonuses. Each fund receives an amount equal to
foster-register 7 or more North American groups, each
one-fourth of 1% (.0025) of the total North American
of which qualifies at the 25% Performance Bonus Level
Upline Depth Bonusqualifier BV. In addition, the Emerald and Diamond funds
YOU The base amount of your for at least 6 months of a given fiscal year, receive a
gets 1% of the BV from your include one-fourth of 1% (.0025) of qualified
Monthly Depth Bonus from B’s Diamond Plus Bonus at the end of each fiscal year.
frontline IBOs. Each frontline Your 3 frontline IBOs Group is $928.50 – the sum of
international volume. Following is a description of how
here fulfills the guaranteed qualify you for bonus amounts from IBOsD-J. each of the bonus funds is disbursed. In the event that disbursements based on the schedule
minimum amount by Monthly Depth Bonus would leave a surplus in the fund – or exceed the total
You keep entire amount
generating the MDA.
A B C because B fulfilled the Emerald Bonus available in the fund – then all payments would be
(22,500 x .01 = $225) 7500 7500 7500 guaranteed minimum amount. Qualified Emeralds and above who personally or increased or decreased on a pro rata basis until the
22500 22500 22500 total disbursement equaled the available funds.
foster-register 3 or more North American groups, each
of which qualifies at the 25% Performance Bonus Level
Emerald Profit Sharing Bonus
Your Monthly Depth
Your second level D for at least 6 months of a given fiscal year, receive
Bonus is 1% of the 350 1050 x .01 = $10.50 Emerald Bonus points and payment on North American Qualified Emeralds and above who personally or
qualified BV of all these 1050 volume as well as the traceable volume from foster-register 3 or more North American groups, each
levels.
internationally sponsored qualified groups. of which qualifies at the 25% Performance Bonus Level
E for at least 6 months of a given fiscal year, can, at
500 At the end of the fiscal year, Amway identifies all
1500 x .01 = $15 Amway’s discretion, receive Emerald Profit Sharing
1500 internationally sponsored volume, links it to the
points and payment on North American volume.*
appropriate international Sponsor and corresponding
market (one country removed) and pays an Emerald
F Bonus to both the International and Foster Lines of
100 300 x .01 = $3
300
Sponsorship. All Emerald Bonus recipients may benefit
from the expanded fund amounts.*

G Diamond Bonus
Next Depth Bonus 7500 22,500 x .01 = $225
Qualifier 22500 Qualified Diamonds and above who personally or
foster-register 6 or more North American groups, each
of which qualifies at the 25% Performance Bonus Level
G’s frontline for at least 6 months of a given fiscal year, receive
IBOs qualify G H I J Diamond Bonus points and payment on qualified North
for Monthly 7500 7500 7500 22,500 x 3 x .01 = $675 American volume as well as the traceable volume from
Depth Bonus 22500 22500 22500 internationally sponsored qualified groups.*
K doesn’t contribute to your
Monthly Depth Bonus K
because this is the level G’s second level 7500 G’s Monthly Depth Bonus is 22,500 x .01 = $225
that starts producing 22500
MonthlyDepth Bonus for G.

The fund is distributed to eligible participants in accordance with the formula shown in the table "Emerald Profit Sharing, Emerald and
*

Diamond Bonus Schedule" which can be found in the Money & Rewards Leader Income Guide. Visit www.amway.com/money-and-rewards.

For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below For the calendar year 2021, the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below
was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including: was $766 before expenses. See www.amway.com/income-disclosure for details. Earnings depend on many factors, including:
customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team. customer base, business experience, effort, dedication, and quality and performance of an IBO’s sales team.

A-19 A-20
 HELPFUL INFORMATION
MANAGING
Annual Business Renewal Building an International Business
You must maintain a current authorization in order You have the opportunity to register others into the
to preserve your rights as an IBO, including all rights business not just in the U.S., but also in any of the

YOUR BUSINESS
to IBOs and customers you have registered. Your 100 countries and territories worldwide where Amway
authorization expires on December 31 each year. To has established affiliate markets. When you become
remain an authorized IBO, you must submit a Renewal an International Sponsor for someone in another
Agreement every year prior to December 31, along country, they will be aligned with a Foster Sponsor
with the required Annual Business Fee. You can renew who is authorized in the market and who provides your
online or by phone. registrant with the product, education, training and SECTION CONTENTS
motivation they need. The global Sales & Marketing
First-year IBO renewal fees may be waived or Product Information and Ordering B-1
Plan rewards both the International Sponsor and the
prorated depending on the month in which they AMWAYPROMISE ™
B-1
Foster Sponsor for your registrant’s sales activity.
entered the business. IBOs who enter between
August 1 and December 31 of the current year will Should you wish to personally sponsor others in Returns B-1
not need to process a renewal until December of another market, or to sell products there, you are Warranty & Service Program B-1
the following year. required to establish an authorized distributorship
Product Liability Protection B-2
in that market. Establishing a business in another
Volume Credits and Transfers country as a non-citizen is often complicated and the Procedures for Handling Complaints B-2
PV/BV from product orders placed directly with business and Legal requirements vary from country Sales Tax B-2
Amway will be credited to the ordering IBO, unless to country. You are advised to contact the U.S.
Business Licenses B-2
otherwise indicated at the time of the order. If you Embassy or Consulate in the market, as well as the
place an order on behalf of another IBO, you must company’s local affiliate office. Where it is permitted, Zoning Ordinances B-2
designate that the volume for the order be credited to your international business(es) will be internationally Bookkeeping Basics B-2
that IBO. Additionally, you may supply another IBO sponsored by your existing Amway™ business in the
U.S. and foster sponsored by an authorized distributor Income Tax B-3
with products from your inventory, but the volume for
those products must be transferred from your monthly in the country. Your international business(es) will be Insurance B-3
totals and credited to the purchasing IBO and all regarded as separate independent businesses and Training and Business Support Materials B-4
PV/BV transfers must be made in the month that the may not be merged with any other businesses for
purposes of awards and qualifications. To learn more Responsibility Statement B-4
transaction occurs. This allows Amway to properly
calculate monthly volume and payment of all bonuses about the requirements for starting an international Succession Planning B-4
and awards. For detailed information about volume business, contact Customer Service at 800-253-6500.
Partner Stores B-4
credits and transfers, including the open dates for
making transfers each month, visit Amway.com.

A-21 A B
 MANAGING YOUR BUSINESS MANAGING YOUR BUSINESS
Product Information and Ordering Please note, only IBO purchases for personal, family or Product Liability Protection Business Licenses
household use may be returned under the Satisfaction
Amway.com is a great resource to help you manage Amway carries product liability insurance that protects Some state and local governments have laws and
Guarantee. Anything purchased for IBO inventory is
your business. Log in to discover many great tools both Amway and IBOs from damages that are caused ordinances that require business operators to register
returnable only under the Buy-Back Rule. The Buy-Back
and resources, shopping directories, detailed product by defective products. A product can be defective their business and sometimes pay an annual fee for the
Rule applies if the IBO decides to leave the business, or
information and much more. either in the way it is manufactured or in the way it privilege of doing business in that state or municipality.
an exception is made because the IBO may be changing
is designed. However, Amway’s insurance does not A couple of examples: the state of Nevada requires most
Product availability and pricing are subject to change fulfillment methods or experiencing significant financial
cover careless or negligent application, improper use businesses to obtain an annual State Business License
without notice, though we generally communicate hardship. Exception returns are reviewed on a case-
of a product or recommending that a product be used and in California, the cities of San Jose and Los Angeles
updates via Amway.com. If any information appears by-case basis pursuant to Amway’s exception returns
other than for its intended purpose. It is important to require a business license. You should confirm any state
incorrect, you have questions or you need assistance policy. Returns staff members reserve the right, in their
note, however, that the Independent Business Owners or local obligations you have and request a copy of any
placing an order, contact Customer Service. They’ll be sole discretion, to make the final determination on all
Benefit Association (IBOBA) plan (discussed further such law or ordinance. Many ordinances do not apply to
happy to help. exception return requests. Amway does not sell inventory
below) does not provide product liability coverage and the Amway Independent Business Owner Compensation
on consignment, so you should only order what you
AMWAYPROMISE™ should not be confused with Amway’s product liability Plan, but in such instances where they do, you must
reasonably intend to sell during the month. For more
coverage. comply with the law.
At Amway, we know that our success is dependent on information on customer returns and an IBO’s obligations
the success of our Independent Business Owners and regarding Satisfaction Guarantee service, see the Procedures for Handling Complaints Zoning Ordinances
the confidence people have in our products. Satisfaction Satisfaction Guarantee section above and Rule 4.9 of the
Rules of Conduct. For more information on IBO returns, 1. Ask the customer to explain how the damage Some local governments have zoning ordinances that
will always be our goal and protection – our promise. occurred. Be sure to obtain the name of the product
see Rules 4.10 and 4.11 of the Rules of Conduct. limit or prohibit the operation of a commercial business
As a Customer If your customer makes a purchase with and when the damage occurred, then write down from the home. While most such zoning ordinances do
Amway, they will get more than just quality products –
†
Specific limited guarantees apply to designated products. Atmosphere™, iCook™ and the name, address and phone number of the not apply to the Amway Independent Business Owner
eSpring™ products must be returned within 120 days. Partner Store items must be
they get a promise that we will protect that purchase. If returned to the Partner Store from which they were purchased. This satisfaction customer. Compensation Plan, you should confirm this with your
guarantee does not apply to IBO purchases for stock or inventory.
they are not satisfied with the product, they can 2. Do not say that Amway will pay for the damage. local government office. It is your responsibility to
replace, exchange or return it within its satisfaction Some items such as consumable food and beverage items are non-returnable unless
defective upon receipt. Simply state that Amway will contact them comply with all zoning and other municipal requirements
guarantee time frame. Sales aids are returnable only by IBOs in the first 90 days after registration. regarding the damage. for operating your business.
As a Business Owner We know that becoming an 3. Ask the customer to keep the product and the Bookkeeping Basics
Amway Independent Business Owner is no small thing. Warranty & Service Program damaged article.
Since the start, people have been our priority – and Protection at point of sale and as product filters and other As a business owner, it is important to conduct your
4. Call or write us with the information and we will deal affairs in a professional and businesslike manner, which
when you are an Amway Independent Business Owner, components are replaced. Certain products have their own directly with the customer. Call or write: includes keeping accurate books and records to track
we are committed to supporting you every step of the warranties, as noted on the product pages. In addition, if
way from humble beginnings to hard-earned success. any mechanical device should become defective within 180 your productivity. Accurately recording business income
Amway Product Liability Claims and expenses and keeping original source documents
Low-cost, Start-up Guarantee Zero purchase days of purchase, Amway will, at our option, repair, replace 7575 Fulton Street East
or issue a refund for such device. This warranty, which does that substantiate both, will not only come in handy during
requirements and a $76 (USD) sign-up fee for new Ada, MI 49355-0001 tax season, but will also help you meet your business
Amway business owners. not cover damage to a product resulting from accident or 616-787-6896
misuse, provides specific Legal rights. Other rights that objectives.
Email: [email protected]
100% Satisfaction Guarantee Ensures satisfaction vary from state to state may be available. Because our For help managing your books, you can:
with Amway products or business opportunity. If for any inventory is constantly being replenished with new stock, it Sales Tax • Purchase one of several affordable bookkeeping
reason you are not completely satisfied with our is possible that a similar product of equal or higher value programs for your computer.
products you may return them within 180 days of may be substituted at no additional cost. Selling products and services to your customers
• Talk to your sponsor – or with your upline Platinum –
purchase for an exchange or refund of the product requires the collection and remittance of various state
You may request a copy of the warranty prior to ordering. about their methods.
price and applicable tax.† and local sales taxes. Amway has made every effort to
Warranty claims for Partner Store purchases should be • Consult with a qualified tax advisor, preferably a CPA,
make that as easy as possible, which is why we entered
directed to the Partner Store. who has the training and experience to recommend an
Returns into collection agreements with all applicable state
effective bookkeeping strategy for you.
Customer Service Assistance for all product and business and local taxing authorities. Those agreements allow
Returns are easy! IBOs and registered customers who
opportunity related inquiries. Amway to collect the required sales taxes at the point Implementing effective bookkeeping methods will
place orders with – and receive product delivery directly
Email: [email protected] of sale and remit them to the proper taxing authorities allow you to devote more attention and energy toward
from – Amway may return items using the information
Phone: 800-253-6500 on your behalf. As a result, you won’t need to obtain building your business.
included with each order. You can find additional
a sales tax license for your business. Instead, you’ll
information at Amway.com by searching “return.” For The Right to Know We promise to be transparent and operate under the sales tax license assigned to Amway
any questions, call Customer Service at 800-253-6500. forthcoming in all communications related to our service in each state, county and municipality.
and protection offerings.
Amway Independent Business Owners are charged a For sales tax-related questions, please call Customer
For more information on returns, policies and procedures, Service at 800-253-6500, or visit www.amway.com/
processing fee of $5.95 for each invoice. However, any
go to Amway.com/amway-promise and click on the "View business-center/tax-information.
merchandise returned due to errors or damages upon
Details" link under the 100% Satisfaction Guarantee
delivery will not incur a processing fee.
section. For IBO obligations regarding customer returns
under the Satisfaction Guarantee, see Rule 4.9 of the
Rules of Conduct.

B-1 B-2
 MANAGING YOUR BUSINESS MANAGING YOUR BUSINESS
Income Tax primarily in their business. Both liability protections are Responsibility Statement Succession Planning
crucial for business owners. For more information about
Like any for-profit business owner, your income is When selling food supplement and health and fitness As an IBO builds his or her business, consideration
insurance coverage that has been purchased for your
subject to tax and must be reported on your personal products, there are many state and federal laws that should be given to succession planning, including how
business, contact Marsh at 800-548-9175.
income tax returns. Business income and expenses must be followed. an IBO may want to transfer his or her business
must be summarized separately on IRS Form 1040, for USI Affinity, for an additional fee, administers various pursuant to the IBO Contract. But succession planning
It’s very important to only use product claims found
which you will most likely use Schedule C. Additionally, insurance plans designed to serve each IBO’s personal is not limited to how a business may be transferred
in authorized literature. Improper claim usage from
you may be required to issue Form 1099-MISC to IBOs and family insurance needs. These include health, through contracts or estate planning devices. Additional
unauthorized literature could misrepresent food
downline from you. If the aggregate amount of your dental, vision, life, disability, accidental, auto, considerations include how you may want to add your
supplements as drugs or medications, leading to
purchases from Amway is $5,000 or more in a homeowners and even pet insurance. Other valuable children or others to your business during your lifetime
violations of food supplement regulations.
calendar year and/or if your Amway income is $600 or offers from USI Affinity include a free health care to maintain the continuity of your business. These are
more, Amway will be required by law to issue a Form savings discount card that entitles you to discounts from When it comes to nutrition and supplement products, let topics you may want to discuss with your tax consultant
1099-MISC to you. Your Amway income might also participating providers throughout the U.S. For more your customers select the product(s) best suited for his and attorney.
include reportable items like amenities, activities, gift information about personal and family insurance or her needs. Unless you are a medical doctor, you
Amway is here to guide you through this process. For more
cards, etc. options, log in to Amway.com and view Partner Stores or shouldn’t diagnose health complaints or recommend
information on succession planning, contact Business
call USI Affinity at 800-254-2327. remedies for health conditions.
Please note, Amway must have a valid taxpayer Conduct & Rules.
identification number on file for your business in order Training and Business Support Materials Customers should consult with a physician before
Partner Stores
to properly report bonus payments. Because you have starting a significant lifestyle-change program,
Education, training and motivation are critically especially an intensive weight-loss program or exercise Partner Stores bring the convenience of shopping
the opportunity to very quickly earn income through
important to building a successful independent program. If your customers experience pain or national retailers all in one secure place, through the
Performance Bonuses, you should confirm that Amway
business. To educate you in the business and assist with discomfort while following a lifestyle-change program, Amway website. Each participating individual Partner
has your proper Social Security Number, or other
your own training and motivation, as well as teaching they should discontinue the program and check with Store site provides its own shopping cart, processes
taxpayer identification number, especially if you did not
how to train and motivate others, Amway prepares various their physician. your order, ships it and handles any customer service
provide it at registration. Failure to provide Amway with
merchandising aids and support services. All materials inquiries.
this information may result in your bonus payments
produced and distributed by Amway are subject to its Do not use testimonials from customers who report
being subject to backup withholding as required by the Explore Partner Stores at Amway.com.
Satisfaction Guarantee Rule 4.9, Buy-Back Rule 4.10 and health improvements after using Nutrilite supplements.
Internal Revenue Code.
Other Returns Rule 4.11. In situations where customers achieve weight-loss or
Contact a qualified tax advisor, preferably a CPA, exercise results claimed from using Nutrilite products,
Some IBOs independently produce or procure and you may use testimonials only if you make sure you
for guidance.
distribute their own Business Support Materials (BSM), have documentary proof to support the claims at the
as defined in Rule 7 of the Rules of Conduct. These may time you make them.
Insurance
include business aids, books, magazines, flip charts
When you register as an IBO, you become a member of and other printed material, online literature, internet
the Independent Business Owners Benefits Association websites, advertising, audio, video, digital media,
(IBOBA), a nonprofit association that promotes the meetings and educational seminars. Some IBOs earn
interests of its members to use the power of group additional income from the sale of BSM apart from their
buying. Benefits and services, such as travel programs, earnings as IBOs.
include automobile rental, hotel discounts, insurance and
You may decide that these materials can help you build
non-insurance health care discounts as well as providing
your business, or not. It’s your decision. No one may
educational information and forums.
pressure you to buy these materials. Your own good
One of the benefits of the IBOBA membership is valuable judgment should guide you in deciding what is best
business and family insurance plans at favorable group for your independent business, considering among
rates, some of which is purchased with a portion of your other things the cost, benefit and time commitment
Amway business registration fee. associated with the purchase and use of these
Marsh USA Inc. services IBOs for their commercial materials. Amway does not earn any revenue from the
general liability and property insurance needs. General purchase of BSM from IBOs or third parties.
liability insurance protects IBOs against occurrences Rule 7 of the Rules of Conduct requires that IBOs who
of bodily injury, property damage, personal injury sell BSM have certain minimum return and refund
and advertising injury during the conduct of their policies. See Rule 7 for further details. All IBOs are free
independent business. Business property insurance to purchase or cease purchasing BSM at any time.
protects IBOs against losses resulting from physical
damage to business inventory, samples, sales literature,
equipment and other personal and real property used

B-3 B-4
 RULES OF CONDUCT
RULES OF CONDUCT
4. Responsibilities and Obligations C-4 6. Preservation of the Line of Sponsorship C-8
4.1. Duty of Good Faith C-4 6.1. Confidentiality of the LOS C-8–C-9
4.2. Cross-Group Buying or Selling C-4 6.2. Non-Competition and
4.3. Unsolicited Electronic Messages C-4 Non-Solicitation C-9–C-10
SECTION CONTENTS 2.9. Marks C-3 4.4. Advertising C-5 6.3. Other Business Activities C-10
2.10. Prospect C-3 4.5. Retail Establishments C-5 6.4. Approval of Certain IBO Contract Changes C-10
1. Introduction C-2 2.11. Region C-3 4.6. Statements About Products, Services and the 6.5. Individual Transfers C-10
1.1. Contractual Relationship C-2 2.12. Use C-3 Opportunity C-5 6.6. Group Transfers C-10
1.2. Choice of Law C-2 3. Becoming an IBO C-3 4.7. Repackaging C-5 6.7. Six-Month Inactivity C-11
1.3. Severability C-2 3.1. Registration Agreement C-3 4.8. Written Sales Receipt C-5 6.8. Sale of an IB C-11
2. Definitions C-2 3.2. Acceptance or Rejection of IBO Registration 4.9. Satisfaction Guarantee C-5 6.9. Mergers and Combinations of IBs C-11
2.1. Amway IBO Compensation Plan (or Plan) C-2 Agreement C-3 4.10. Buy-Back Rule C-5 6.10. Two IBs Rule C-12
2.2. Copyrighted Works C-2 3.3. Legal Entities as IBOs C-3 4.11. Other Returns C-5 6.11. Parent-Child Integration C-12
2.3. Customer C-2 3.4. Husband and Wife IBOs C-3 4.12. Seventy Percent Rule C-6 6.12. Divorce, Separation or Other Dissolution of a Non-
2.4. Independent Business (IB) C-2 3.5. Minors as Independent Business Owners C-3 4.13. Customer Volume C-6 Spousal Partnership or Legal Entity C-12–C-13
2.5. Independent Business Owner (IBO) C-2 3.6. Term C-3 4.14. Compliance with Applicable Laws, Regulations 6.13. Disposition of an IB C-13
2.6. IBOAI* Board C-2 3.7. Annual Renewal C-4 and Codes C-6 7. Business Support Materials C-13
2.7. Line of Sponsorship (LOS) C-2 3.8. Late Renewal C-4 4.15. IBO Relationship C-6 7.1. General Rules on BSM C-13– C-14
2.8. LOS Information C-2 3.9. IBO Contract Termination C-4 4.16. Franchises and Territories C-6 7.2. Sale, Promotion and Distribution of BSM with
3.10. Death and Inheritance C-4 4.17. Enticement to Change Position in the Line Authorization from an Approved Provider C-15
of Sponsorship C-6 8. Marks and Copyrighted Works C-15
4.18. Exporting and Importing C-6 8.1. Use of Marks and Copyrighted Works C-15
*
IBOAI is a registered trademark of Independent Business 4.19. Activity Outside the Region or Activity Outside 9. Complying with the IBO Contract
Owners Association International.
the Market Where the IBO Is Registered C-6 (Remedies for Breach) C-15
4.20. Sound Business Practices C-6 9.1. Amway’s Rights and Responsibilities C-15
4.21. Fund-raising C-7 9.2. IBO Rights and Responsibilities C-16
4.22. IBO Plan Manipulation C-7 9.3. Duty to Cooperate C-16
4.23. Personal/Business Information Update C-7 9.4. Non-Waiver C-16
4.24. Amway Contact C-7 10. Modification of the IBO Contract C-16
5. Presentation of the Plan, Sponsoring 11. Dispute Resolution Procedures C-16
and Support C-7 11.1. Amendment Only with IBOAI Consent C-17
5.1. Inviting C-7 11.2. Temporary or Preliminary Injunctive Relief C-17
5.2. Describing the Plan C-7 11.3. Confidentiality C-17
5.3. Required Disclosures C-7 11.4. Conciliation C-17–C-18
5.4. Prohibited Sponsoring Practices C-7 11.5. Arbitration C-18–C-19
5.5. Sponsor’s Responsibilities C-7–C-8
5.6. Platinum Responsibilities C-8
5.7. Prohibited Support Practices C-8

BUSINESS CONDUCT & RULES

DEPARTMENT CONTACT INFO
Email [email protected]
Phone 616-787-6712
Fax 616-787-7896

A
C B-4 C-1
 RULES OF CONDUCT RULES OF CONDUCT
1. Introduction 1.2. Choice of Law: Except to the extent that the 2.9. Marks: The trademarks, service marks, trade Agreement for Independent Business Owners (IBOs)
Federal Arbitration Act applies to Rule 11, the dress and trade names adopted or used by Amway and submit it to Amway, which may accept or reject it.
The Rules of Conduct (“Rules”) form an important part
formation, construction, interpretation and and/or otherwise the subject of pending or existing Existing IBOs as of September 2012 that are operating
of the contract between Amway and the IBO (the “IBO
enforceability of the IBO Contract and all claims trademark rights owned by or licensed to Amway, through a Legal entity under an existing Entity
Contract”). The Rules have been carefully developed in
arising from or relating to the IBO Contract shall be regardless of whether the trademarks, service marks, Agreement approved by Amway may continue to
consultation with the IBOAI Board and have been
governed by Michigan law, without giving effect to trade dress or trade names are the subject of operate under that agreement, but the IBO and entity
implemented following notice to IBOs and review of
any choice of law or conflicts of law rules or provisions trademark applications or registrations. must sign the currently applicable Entity Agreement
their comments.
(whether of the State of Michigan or any other upon request or in the event of a change in ownership
2.10. Prospect: A prospective IBO.
IBOs own and operate their own Independent jurisdiction) that would cause the application of the or control in the entity.
Businesses (“IBs”). Amway recognizes the value of the laws of any jurisdiction other than the State of 2.11. Region: The United States, Canada, Dominican
3.4. Husband and Wife IBOs: If both husband and
contributions that IBOs who have achieved business Michigan. The place where the IBO Contract is made Republic, Puerto Rico, U.S. Virgin Islands, Guam,
wife wish to become IBOs, they must register together
goals can make to the development of other IBOs is Michigan. Jamaica, the Pacific Islands of American Samoa,
as a single IB. Husbands and wives may not sponsor
whom they sponsor and support under the Rules. As Federated States of Micronesia, Marshall Islands,
1.3. Severability: If an arbitrator or court of each other. If one spouse is already an IBO, the other
IBOs develop into established leaders, they play an Northern Mariana Islands, Palau, Wake Island and all
competent jurisdiction determines any portion of the spouse, upon electing to become an IBO, must join his
increasingly important role in mentoring, teaching and authorized Atlantic and Caribbean islands operating
Rules of Conduct is unenforceable in any respect, then or her spouse’s IB. An IBO will be held accountable for
training other IBOs about the Amway business. Among under the Plan.
it shall enforce the rest of the Rules of Conduct to the the actions of a spouse, whether or not the spouse is
other things, the Rules are designed to ensure that all
fullest extent permitted by law without affecting the 2.12. Use: (a) with reference to Marks, directly or an IBO, so far as the Rules of Conduct are concerned.
IBOs have the support that they need to continue to
enforceability of all remaining Rules of Conduct. indirectly placing, affixing or displaying one or more
develop their IBs with Amway. 3.5. Minors as Independent Business Owners:
Marks on or in connection with goods or services, in a
2. Definitions Minors who are at least 16 years of age may become
Under the IBO Contract, IBOs receive substantial manner that tends to create the impression of an
IBOs only for the single purpose of merchandising
benefits, including: the right to purchase products 2.1. Amway IBO Compensation Plan (or Plan): The affiliation, connection or association between Amway
products and services offered through or by Amway.
through Amway at IBO cost for resale; the right to business arrangement through which IBOs receive and the IBO or Approved Provider; and (b) with
A minor who desires to become an IBO must be added
sponsor others to become IBOs and sell products offered certain income or other compensation as described in reference to Copyrighted Works, to reproduce,
as a co-owner to his or her parent's or guardian's IB.
at www.amway.com; the right to qualify for bonuses Section A of the Business Reference Guide. distribute and/or display copies of the Copyrighted
Minors cannot serve in the role as Business Manager in
under the Amway IBO Compensation Plan (“Plan”); use Works, in whole or in part, including by means of
2.2. Copyrighted Works: Works protectable by any IB.
of Amway’s intellectual property in accordance with the digital audio transmissions and to create any
Rules; and a variety of support for IBOs and their copyrights that are owned by, created by or licensed derivative works. 3.6. Term: The term of the IBO Contract shall expire at
Customers. As part of its commitment to support the to Amway. the end of each calendar year, with the exception of
opportunity made available to IBOs, Amway invests 3. Becoming an IBO initial registrations accepted by Amway between
2.3. Customer: A non-IBO who is an end user of
substantial resources in goodwill, in the Line of products and services offered through or by Amway. 3.1. Registration Agreement: To become an IBO, an September 1 and December 31, in which case such
Sponsorship (“LOS”) and in LOS Information to provide applicant must be 18 years of age, complete and sign initial term shall expire at the end of the subsequent
Amway and IBOs with a competitive advantage. All IBOs 2.4. Independent Business (IB): An Amway calendar year.
the IBO Registration Agreement in accordance with the
and Amway share a competitive business interest in independent business operated by an IBO(s) pursuant
procedures on the Amway website, and pay the
maintaining and protecting these assets and interests. The to the IBO Contract.
Business Services and Support fee specified in the IBO
Rules provide important safeguards for IBOs and Amway 2.5. Independent Business Owner (IBO): An Registration Agreement.
in this regard, as well as contractual rights and individual(s) or entity operating an IB pursuant to the
obligations. 3.2. Acceptance or Rejection of IBO Registration
IBO Contract.
Agreement: Amway reserves the right to accept or
1.1. Contractual Relationship: Amway Corp. 2.6. IBOAI Board: Refer to the Independent reject any IBO Registration Agreement. A registration
(“Amway”) has a contract with each IBO that includes Business Owners Association International, Inc. shall be considered accepted by Amway when it
all of the terms in the IBO Registration Agreement form Board of Directors. receives a completed and signed IBO Registration
executed by the IBO, the renewal form(s) executed or Agreement in accordance with Rule 3.1, its contents
authorized by the IBO, the Plan and the Rules in effect 2.7. Line of Sponsorship (LOS): The structural
are verified with Amway’s IBO records database and
at the time the IBO executed the IBO Registration arrangement of IBOs established by the contractual
the registration does not violate any Rule of Conduct.
Agreement and any Entity Agreement for Independent relationship that each IBO has with Amway.
Pending receipt of a completed, signed IBO
Business Owners (IBOs) (“Entity Agreement”) or 2.8. LOS Information: Includes all information that Registration Agreement, Amway may temporarily
modifications to the Plan or Rules that become discloses or relates to all or part of the Line of authorize an IBO to conduct business subject to the
effective during the term of the contract (the “IBO Sponsorship, including but not limited to IBO numbers Rules of Conduct for up to 90 days.
Contract”). The current version of the Plan and Rules and other IBO business identification data, IBO
can be found at www.amway.com. 3.3. Legal Entities as IBOs: IBs shall be formed
personal contact information, IBO business
initially by and in the name(s) of the individual
As part of the IBO Contract, IBOs have an obligation performance information and all information
applicant(s). After receiving an IBO number, an IBO
to comply with the Rules. generated or derived therefrom, in its past, present or
who wishes to operate his/her IB as a corporation,
future forms.
limited liability company (LLC), formal partnership,
limited partnership, limited liability partnership (LLP)
or trust must complete the appropriate Entity

*
IBOAI is a registered trademark of Independent Business
Owners Association International.

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 RULES OF CONDUCT RULES OF CONDUCT
3.7. Annual Renewal: In order to renew the IBO 3.10.3. In cases where an IBO disposes of an IB in 4.4. Advertising: IBOs may advertise only with the 4.9. Satisfaction Guarantee: When a Customer
Contract, an IBO must annually file a request to renew a will, Amway will recognize the terms of the express approval of Amway in writing. requests Satisfaction Guarantee service within the
the IBO Contract, along with the required annual transfer, provided the beneficiary is an IBO who is stated guarantee period for a product purchased
4.5. Retail Establishments: An IBO who works in or
business renewal fee, by December 31 of the year in compliance with the Rules. directly from an IBO, the IBO shall immediately offer
owns a retail establishment must operate his or her IB
preceding the year for which the IBO is renewing. Amway the individual his or her choice of: (a) a full refund; (b)
3.10.4. If there is no qualified IBO in a position to separate and apart from the retail establishment. No
reserves the right to reject any renewal request, or revoke an exchange for a like product; or (c) full credit toward
operate an IB due to probate or other court IBO shall permit products, services or literature offered
any IBO’s Renewal Agreement, if the IBO is not in the purchase of another product. If a product is
procedures, Amway will have the option of entering through or by Amway to be sold or displayed in retail
compliance with all provisions of the IBO Contract. shipped directly to the Customer by Amway, the
into a servicing agreement with another IBO, establishments, including, but not limited to, places like
An annual Renewal Agreement may be completed and Customer should follow the return instructions on the
preferably upline in the LOS, to manage the IB until schools, fairs, kiosks, vending machines, unauthorized
signed in one of the following ways: (a) an IBO may packing slip. In the case of IBO purchases, only those
the proceedings are complete. internet websites, military stores, salons or professional
complete, sign and submit an electronic version of the that the IBO makes for personal, family or household
offices.
Renewal Agreement and pay the required annual 3.11. Amway may use a third-party vendor to pay use may be returned under the Satisfaction
business fee in accordance with the procedures on the IBOs bonuses and/or other monies earned by IBOs 4.5.1. Event Sales: The sale of authorized Guarantee. Whenever an IBO requests Satisfaction
Amway website; (b) an IBO may renew and pay the under the Plan. IBOs must (a) register with any product categories by IBOs are permitted only at Guarantee service within the stated guarantee period,
required annual business fee by telephone at such vendor of Amway’s choosing and continue to temporary (no more than 10 days) events whose an IBO has the choice of a: (a) full refund; (b)
800‑253‑6500; (c) an IBO may sign an automatic be registered with any such vendor of Amway’s themes are consistent with the products being sold exchange for the same or like product; or (c) full credit
Renewal Agreement with Amway; unless they instruct choosing, which is subject to change, as long as and only with the express approval of Amway in toward the purchase of another product.
Amway otherwise, IBOs who have reached the level of they remain IBOs, including agreeing to the writing. To allow Amway sufficient time to grant
The current Satisfaction Guarantee can be found at
Silver Producer or above will be automatically renewed vendor’s currently applicable terms and approval, the IBO must submit a completed Event
www.amway.com/amwaypromise then click on 100%
in order to avoid an inadvertent interruption of conditions, if any, and (b) provide any such vendor Sales Application Form to Amway 30 days prior to
Satisfaction Guarantee.
their business. with all information it requires, which may include the event. A copy of the Event Sales Application
but is not limited to a primary email address and form may be obtained at www.amway.com. 4.10. Buy-Back Rule: IBOs leaving the Amway
3.8. Late Renewal: In the event that Amway accepts
tax identification number, to allow the vendor to business have a right to return Amway products.
an IBO’s Renewal Agreement that was not filed in 4.5.2. Display Booths: The display only (no sales)
make payments to IBOs on behalf of Amway. The A departing IBO may choose to sell inventory of
compliance with Rule 3.7, Amway is not required to of products and approved literature by IBOs is
current vendor’s registration and other currently marketable Amway products to an upline IBO
restore that IBO’s sponsoring relationship(s) with permitted only at temporary (no more than 10
requirements for making payments to IBOs can be at a mutually agreeable price. If a departing IBO is
downline IBOs. days) events and only with the express approval of
found at www.amway.com/paymentvendor. unable to secure the buy-back of inventory through an
Amway in writing. To allow Amway sufficient time
3.9. IBO Contract Termination: An IBO may upline IBO, Amway shall repurchase the departing
4. Responsibilities and Obligations to grant approval, the IBO must submit a
terminate his or her IBO Contract at any time prior to IBO’s unused, currently marketable Amway products
completed Display Booth Application Form to
expiration by written communication to the Amway 4.1. Duty of Good Faith: Under the terms of the IBO subject to the following: (a) Amway will make all
Amway 30 days prior to the event. A copy of the
Business Conduct and Rules Department. A person Contract, Amway and all IBOs agree to perform their appropriate Performance Bonus differential and
Display Booth Application form may be obtained
who terminates his or her IBO Contract may obligations in accordance with the duty of good faith Leadership Bonus charge-backs to those IBs who
at www.amway.com.
immediately become a Customer. and fair dealing. An IBO will be held accountable for originally received them; and (b) Amway will charge
the actions of a partner, family member or third party 4.6. Statements About Products, Services and the freight costs incurred by the IBO leaving the Amway
3.10. Death and Inheritance: An IB can be passed on
acting or purporting to act on behalf of the IBO or IB, Opportunity: An IBO shall make only truthful and business if the net reimbursement includes same and a
to a deceased IBO’s spouse, heirs or other beneficiary.
so far as the Rules of Conduct are concerned. An IBO accurate statements about the business opportunity, service charge equal to 10% of the IBO cost of the
3.10.1. In cases where the IB is owned jointly, such shall not aid and abet another IBO to violate the Rules products and services offered through or by Amway. products being returned to cover handling and
as a husband and wife or partnership and one of Conduct. IBOs shall not conduct any activity that IBOs shall not make any claims about products or processing charges.
spouse or partner dies, unless they have previously could jeopardize the reputation of Amway or IBOs. services offered through or by Amway other than
4.11. Other Returns: An IBO who is not leaving the
arranged otherwise, Amway will recognize the those claims found in Amway‑authorized literature and
4.2. Cross-Group Buying or Selling: No IBO shall Amway business may ask Amway to buy back Amway
surviving spouse or partner(s) as the owner(s) of at www.amway.com.
engage in cross-group buying or selling. Cross-group products where he or she may be experiencing
the IB. The survivor(s) must forward a certified
buying and selling occurs when an IBO sells products 4.7. Repackaging: Products offered through or by financial hardship or other exceptional circumstances
copy of the death certificate in order for Amway to
and services offered through or by Amway to another Amway are to be sold only in their original packages as explained by the IBO. Return requests are reviewed
change its records.
IBO he or she did not personally sponsor, except (a) as and in their original formulations. IBOs may not on a case-by-case basis. Amway reserves the right to
3.10.2. In cases where the IB is operated as an may be permitted under a servicing agreement repackage products or otherwise change or alter any repurchase only unused, currently marketable Amway
entity under Rule 3.3 and one of the owners of the pursuant to Rule 5.5.4 or (b) when an IBO purchases of the packaging, labels or materials of products products subject to Rule 4.9.
entity dies, the entity will continue to operate the from or through his or her upline Platinum products offered through or by Amway.
IB, provided the entity remains in compliance with and services offered through or by Amway. 4.8. Written Sales Receipt: An IBO who takes and/or
Rule 3.3 and the successor of the deceased owner
4.3. Unsolicited Electronic Messages: No IBO shall delivers an order in person for over $25 shall deliver to
is an IBO in full compliance with the Rules. The
send, transmit or otherwise communicate any the Customer at the time of sale a written and dated
entity shall notify Amway of the change in
unsolicited electronic messages relating to Amway, its order or receipt which shall: (a) describe the product(s)
ownership or control of the entity by submitting
business opportunity, products or services to persons sold; (b) state the price charged; (c) give the name,
the currently applicable Entity Agreement
with whom the IBO does not have a pre-existing address and telephone number of the selling IBO; and
reflecting the proposed changes and any
personal or business relationship. (This includes, but is (d) include Amway’s Satisfaction Guarantee.
proposed changes in the ownership or control of
the entity require the express approval of Amway not limited to, sending messages through newsgroups,
in writing. purchased mailing lists, “safe lists,” or other lists of
individuals or entities with whom or which the IBO
does not have a pre-existing relationship.)

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 RULES OF CONDUCT RULES OF CONDUCT
4.12. Seventy Percent Rule: In order for an IBO to 4.15. IBO Relationship: IBOs are independent 4.21. Fund-raising: No IBO shall use Amway products 5.3.1. Must give each Prospect a copy of a brochure
obtain the right to earn a Performance Bonus or contractors. IBOs shall not state or imply that they are or services in conjunction with any type of fund- authorized by Amway for use with Prospects that
receive recognition due on all the products the IBO employees, agents or Legal representatives of Amway, raising activity. Fund-raising includes the solicitation contains the average profits, earnings and sales
purchases, an average of 70% of the IBO’s personal its affiliates and/or other IBOs. IBOs shall not for the donation of funds or for the purchase of Amway figures, and percentages as published by Amway
Business Volume (BV) per month must come from represent or imply, either directly or indirectly, that products or services based on the representation that and orally inform the Prospect that the brochure
products sold at a commercially reasonable price; if registration creates an employment relationship all or some, of the gains, proceeds, donations, bonuses contains the average profits, earnings and sales
the IBO fails to meet this requirement, then such IBO between themselves and the IBOs whom they have or profits generated by such sale will benefit a figures and percentages as published by Amway.
may be paid that percentage of Performance Bonus sponsored or who have sponsored them. particular group, organization or cause.
5.3.2. Must use only Amway-authorized materials
measured by the amount of products that can be
4.16. Franchises and Territories: IBOs shall not 4.22. IBO Plan Manipulation: IBOs shall not or Business Support Materials authorized for use
shown to have been actually sold in a particular
represent to anyone that there are franchises or manipulate the Plan, point value (PV) or business with Prospects under Rule 7 (Business
month, rather than the amount of products purchased
exclusive territories available under the Plan. volume (BV) in any way that results in the payment of Support Materials).
and recognized accordingly. For purposes of this Rule,
bonuses or other awards and recognition that have
a reasonable amount of products used by IBOs in the 4.17. Enticement to Change Position in the Line of 5.4. Prohibited Sponsoring Practices: In seeking
not been earned in accordance with the terms of the
ordinary course of operating their Amway businesses Sponsorship: Under no circumstances shall an IBO, participation of a Prospect in the Plan, an IBO:
IBO Contract.
can contribute to the 70% average. directly or indirectly, solicit, assist, attempt to induce
5.4.1. Must not cite lifestyle examples (e.g., travel,
or encourage another IBO to request a change in 4.23. Personal/Business Information Update: All
4.13. Customer Volume: In order to obtain the right to automobile, homes of successful IBOs and
position in the Line of Sponsorship. IBOs are responsible for communicating any updates
earn a Performance Bonus on downline volume during contributions to charitable causes) unless such
or changes to their personal information (e.g., name,
a given month, an IBO must: (a) make not less than 4.18. Exporting and Importing: IBOs shall not export benefits were actually accrued as the result of
address, email address, telephone numbers, etc.) or
one sale to each of 10 different Customers; or (b) have or import products or services offered through or by building a successful IB.
business information (e.g., business name, address,
at least 50 PV of sales to any number of Customers. Amway, or sell to others they have reason to believe
email address, telephone numbers, addition/deletion 5.4.2. Must not say or imply that a successful IB
For purposes of obtaining the rights referred to in this will import or export such products or services, to or
of partner, change of business status, etc.) to Amway. can be built in the form of a wholesale buying club.
Rule, sales must be to Customers who either: (a) place from the United States or its possessions or territories
an order directly with Amway; or (b) place an order or any other country, regardless of whether or not 4.24. Amway Contact: When the Rules require an 5.4.3. Must not say or imply that there is no
with the IBO that the IBO reports to Amway through a Amway or its affiliates have established operations or IBO to contact Amway for notice, permission or requirement for the retail sale or marketing of
system established by Amway for tracking such sales. are doing business in that country. Nothing in this Rule approval, the IBO shall contact the Amway Business products by IBOs.
It is the obligation of the IBO to ensure compliance prohibits IBOs from personal use or resale within the Conduct and Rules Department by mail at 7575 Fulton
5.4.4. Must not promote potential tax benefits of
with the official deadlines and requirements Region in accordance with the IBO Contract. Street East, Ada, Michigan 49355, by fax at 616-787-
the Plan.
communicated by Amway, in order to qualify for 7896 or by email at [email protected]. For questions or
4.19. Activity Outside the Region or Activity
Performance Bonus and other awards, rewards, and concerns, please call 616-787-6712. 5.4.5. Must not encourage or require a Prospect to
Outside the Market Where the IBO Is Registered:
recognition. This Rule shall apply unless the IBO is purchase anything not included with the Business
IBOs who engage, directly or indirectly, in any activity
currently a qualified Platinum or above. 5. Presentation of the Plan, Sponsoring and Support Services and Support fee specified in the IBO
related to the Amway business in a jurisdiction outside
Registration Agreement and must not encourage
4.14. Compliance with Applicable Laws, of the Region must do so in a manner that complies 5.1. Inviting: When inviting a Prospect to hear a
the purchase of a product or service not identified
Regulations and Codes: IBOs shall comply with all with the letter and spirit of the applicable laws, presentation of the Plan, an IBO must make it clear
on the IBO Registration Agreement. The only
laws, regulations and codes that apply to the regulations, rules, policies and procedures of the that what is being described or offered is the Plan.
requirements that an IBO can impose upon a
operation of their IB wherever said business may be Amway affiliate in that jurisdiction, regardless of
5.2. Describing the Plan: When describing the Plan: Prospect whom he or she is willing to register is that
conducted. IBOs shall not directly or indirectly whether they are registered IBOs in that jurisdiction.
(a) an IBO’s statements must be truthful, accurate and the Prospect shall pay the Business Services and
encourage, or aid and abet any person to violate any Failure to do so shall be a breach of the IBO Contract.
not misleading; (b) the roles of a balanced business Support fee and sign a completed IBO Registration
laws, regulations, codes or term of the IBO Contract. (retail sales, personal use and sponsoring) must be Agreement and submit it to Amway.
4.20. Sound Business Practices: IBOs shall operate
No IBO may operate any illegal or unlawful business accurately described; and (c) all income
their IB in a financially responsible and solvent
enterprise, or engage or participate in any deceptive, 5.4.6. Must not register or sponsor new IBOs in a
manner. Amway reserves the right to offset bonus representations must be limited to income from the
illegal or unlawful trade practices. way that manipulates the new IBO’s position in
payments for amounts an IBO owes to Amway. If an Plan, based on actual experience or from Amway-
the LOS.
IBO or any member partner in his or her IB files a authorized materials and provide realistic
petition for bankruptcy or has bankruptcy income potential. 5.5. Sponsor’s Responsibilities: A sponsor must
proceedings commenced against him or her, or has comply with the following obligations:
5.3. Required Disclosures: In seeking participation of
any assets seized by court order or taken in execution 5.5.1. Rules Compliance: The sponsor must be an
a Prospect in the Plan, an IBO:
of an unsatisfied judgment debt, the IBO must IBO in full compliance with the Rules of Conduct.
immediately inform Amway.

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 RULES OF CONDUCT RULES OF CONDUCT
5.5.2. Access to the IBO Contract: The sponsor 6. Preservation of the Line of Sponsorship 6.1.4. An IBO shall promptly return any and all LOS 6.2.4. Non-Solicitation (former IBOs): Every IBO
must ensure that all IBOs whom he or she sponsors Information to Amway upon resignation, non- agrees that, during the 24-month period following
6.1. Confidentiality of the LOS: Amway protects the
have access to and the opportunity to read the renewal, or termination of his or her IB and shall the resignation, non-renewal or termination of that
LOS and LOS Information for the benefit of Amway
IBO Contract. immediately discontinue any further use thereof. IBO’s IB, he or she shall not, on his or her own
and of all IBOs. Amway keeps LOS Information
behalf or on behalf of any person or entity,
5.5.3. Training and Motivation: The sponsor must proprietary and confidential and treats it as a trade 6.1.5. Every IBO acknowledges that use or
directly or indirectly, encourage, solicit or
be able to train and motivate the IBOs whom he or secret. Amway is the exclusive owner of all LOS disclosure of LOS Information, other than as
otherwise attempt to recruit or persuade (i) any
she has sponsored with a minimum of assistance Information, which is derived, compiled, configured authorized by Amway, will cause significant and
IBO or (ii) any person who has been an IBO within
from his or her first upline Platinum or above. IBOs and maintained through the expenditure of irreparable harm to Amway, warranting an award
the past two calendar years, to own, manage,
may fulfill this obligation by use of Business considerable time, effort and resources by Amway and of injunctive relief, including a temporary
operate, consult for, serve in a Key Position in or
Support Materials approved under Rule 7. its IBOs. IBOs can use Amway’s goodwill and LOS restraining order and/or a preliminary injunction,
participate as an independent distributor in (a)
Information only for the purposes permitted under the specific performance and damages, including
5.5.4. Servicing Arrangements: If an IBO is unable any other direct sales program using a multilevel
IBO Contract. costs, attorneys’ fees and disgorgement of all
or unwilling to service IBOs whom he or she has or network marketing structure, or (b) any other
profits made as a result of such unauthorized use
sponsored with the proper training or motivation, 6.1.1. IBOs acknowledge and agree not to enterprise that markets, through independent
or disclosure.
he or she must make arrangements, in writing, challenge, that: (i) LOS Information is confidential distributors, products or services functionally
with his or her first upline qualified Platinum to and a valuable trade secret owned by Amway; (ii) 6.1.6. An IBO’s obligations under this Rule 6.1 shall interchangeable with those offered through or by
provide this service. Platinum level or above IBOs LOS Information is owned exclusively by Amway; survive and remain enforceable following the Amway.
who wish to make arrangements with another and (iii) IBOs do not own any rights in LOS voluntary or involuntary resignation, non-renewal
6.2.5. The time periods in Rules 6.2.3 and 6.2.4
Platinum level or above IBO to provide product Information. IBOs agree not to challenge or or termination of that IBO’s IB.
above shall be extended by any period of time
fulfillment services to IBOs downline to the next interfere with Amway’s authority to license or
6.2. Non-Competition and Non-Solicitation: during which the former IBO is in violation of the
qualified Platinum, must do so in writing. In either sublicense LOS Information. IBOs shall not assert
6.2.1. Non-Competition (current IBOs): Every applicable Rule.
case, he or she must be willing to compensate for or seek any rights or protection of any kind in LOS
these services and full PV/BV for products Information other than those limited rights or IBO agrees not to own, manage, operate, consult 6.2.6. The geographic scope of Rules 6.2.1, 6.2.2,
purchased must always be transferred to the protections that may be specifically granted by for, serve in a Key Position in or participate as an 6.2.3 and 6.2.4 is the Region.
serviced IBO so that bonuses are paid correctly. this Rule. independent distributor in (a) any other direct
sales program using a multilevel or network 6.2.7. All IBOs agree that these Rules are
5.5.5. Distribution of Performance Bonuses: Some 6.1.2. An IBO may use LOS Information only with reasonable in both time and geographic scope.
marketing structure or (b) any other enterprise
IBOs receive a Performance Bonus from Amway, a Amway’s prior written permission, which may be
that markets, through independent distributors, 6.2.8. For purposes of this Rule 6.2, “Key Position”
part of which may be payable to downline IBOs. expressed through general publication (to all IBOs)
products or services functionally interchangeable means an owner, employee, agent or independent
The IBO cannot retain any portion which may be or through a specific writing to one or more IBOs.
with those offered through or by Amway. contractor who contributes to the profitability of
payable to a downline IBO, even where the Any permission granted by Amway shall constitute
downline IBO owes a private debt to the upline a limited non-exclusive, non-transferable and 6.2.2. Non-Solicitation (current IBOs): Every IBO his or her new business or who is in a position to
IBO, unless there is a written agreement between revocable license by Amway for an IBO to use LOS agrees that he or she will not, on his or her own receive benefit or competitive advantage from his
the parties permitting such retention. Even with Information only as necessary to facilitate his or behalf or on behalf of any person or entity, direct- or her new business by virtue of his or her access
such a written agreement, the upline IBO may her IB as permitted under these Rules of Conduct. ly or indirectly, encourage, solicit, or otherwise to LOS Information.
retain only the net portion of the Performance Amway reserves the right to deny or revoke any attempt to recruit or persuade (i) any IBO or (ii) any 6.2.9. Nothing in this Rule 6.2 restricts the sale or
Bonus due that IBO and not any portion that may such license, upon reasonable notice to the IBO person who has been an IBO within the past two distribution of privately developed Business
be payable to other downline IBOs. stating the reason(s) for such denial or revocation, calendar years, to own, manage, operate, consult Support Materials in accordance with Rule 7 and
whenever, in the reasonable opinion of Amway, for, serve in a Key Position in or participate as an Rule 6.3.
5.6. Platinum Responsibilities: IBOs who qualify as a
such is necessary to protect the confidentiality or independent distributor in (a) any other direct
Platinum or above have the following additional 6.2.10. Nothing in this Rule 6.2 restricts
value of LOS Information. sales program using a multilevel or network
responsibilities: competition between IBOs (a) in the sale of
marketing structure, or (b) any other enterprise
6.1.3. All IBOs shall maintain LOS Information in products or services offered through or by Amway
5.6.1. Conduct or provide access to periodic sales that markets, through independent distributors,
strictest confidence and shall take all reasonable to Customers or (b) in the registration of new IBOs
meetings for the purpose of training and inspiring products or services functionally interchangeable
steps and appropriate measures to safeguard LOS or Customers.
IBOs downline to the next qualified Platinum and with those offered through or by Amway.
Information and maintain the confidentiality
maintain frequent contact with all of them.
thereof. An IBO shall not compile, organize, access, 6.2.3. Non-Competition (former IBOs): Every
5.6.2. Assure compliance with the Rules of create lists of, or otherwise use or disclose LOS IBO agrees that, during the six-month period
Conduct by IBOs downline to the next Information except as authorized by Amway. An following the resignation, non-renewal or
qualified Platinum. IBO also shall not disclose LOS Information to any termination of that IBO’s IB, he or she shall not
third party, or use LOS Information in connection own, manage, operate, consult for, serve in a Key
5.7. Prohibited Support Practices: Sponsors and
with any other businesses or to compete, directly Position in or participate as an independent
upline IBOs shall not encourage or require downline
or indirectly, with the Amway business. distributor in (a) any other direct sales program
IBOs, as a condition of receiving assistance in building
using a multilevel or network marketing structure,
their IB after registration, to (a) purchase any
or (b) any other enterprise that markets, through
specified amount of Amway or non-Amway products
independent distributors, products or services
or services, or (b) maintain a specified inventory of
functionally interchangeable with those offered
Amway or non-Amway products or services.
through or by Amway.

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 RULES OF CONDUCT RULES OF CONDUCT
6.2.11. Every IBO acknowledges that this Rule 6.2 6.4. Approval of Certain IBO Contract Changes: 6.7. Six-Month Inactivity: An IBO who wishes to 6.8.1. In order to preserve the Line of Sponsorship,
protects the reasonable competitive business The sale of an ownership interest in an IB, transferring transfer to a different sponsor but is unable to obtain the selling IBO must offer his or her IB in the order
interests of Amway and IBOs and that a violation an IB, merging IBs, separating or dividing an IB, or the necessary consents may not register under a new of priority stated below and the IBO(s) interested
of any subsection of this Rule 6.2 will cause assignment of any rights or obligations under an IBO sponsor until the IBO has terminated his or her IBO in purchasing the IB must meet all of the terms
significant and irreparable harm to IBOs and Contract require express approval of Amway in Contract or failed to renew and has been inactive for and conditions set forth in these Rules:
Amway, warranting an award of injunctive relief, writing. None of the foregoing may be used to a period of six months or longer. Following the lapse of
6.8.1.1. The first option to purchase belongs to
including a temporary restraining order and/or a manipulate the Line of Sponsorship. the inactive period, the former IBO may register as a
the selling IBO’s International Sponsor, who
preliminary injunction, specific performance and new IBO under a new sponsor.
6.5. Individual Transfers: An individual transfer retains the right to acquire the IB throughout
damages, including costs, attorneys’ fees and
involves the transfer of an IBO without any downline 6.7.1. During the period of inactivity, a person the negotiations to sell the IB by meeting the
disgorgement of all profits made as a result of
IBOs. Any IBO who wants to change his or her sponsor shall not conduct any of the activities of an IBO price and conditions of any bona fide offer
such violation.
must submit a written request to Amway accompanied under his or her name, or in the name of another received by and deemed acceptable to the
6.2.12. Except for obligations under Rule 6.2.1 and by (1) a written release signed by all the IBOs upline in person or IB. selling IBO;
Rule 6.2.2, an IBO’s obligations under this Rule 6.2 the Line of Sponsorship up to and including the first
6.7.2. The following shall not interrupt the running 6.8.1.2. The second option to purchase
shall survive and remain enforceable following the qualified Platinum, (2) a written acceptance from the
of the six-month inactivity period: (a) procuring belongs to the selling IBO’s local Foster
voluntary or involuntary resignation, non-renewal new IBO sponsor and new upline Platinum and (3) a
and/or submitting a written request for transfer; Sponsor so long as the first option has not
or termination of that IBO’s IB. statement indicating the business reason for the
(b) engaging in the Mediation process under Rule been exercised. In the event the selling IBO has
transfer request. Upon Amway’s express approval in
6.3. Other Business Activities: Except as provided in 11.4; (c) operating an Amway-affiliated business in no International Sponsor, the local Sponsor
writing of the request, the written acceptance from the
Rule 6.2, IBOs may engage in other business ventures, any other country in which an Amway affiliate retains the right to acquire the IB throughout
new sponsor and upline Platinum confirms that they
including other selling activities, involving products, conducts business; (d) directing an inquiry to the negotiations to sell the IB by meeting the
will incur all responsibilities of the transferring IBO.
services or business opportunities. However, IBOs may Amway as to the status of his or her IB; or (e) price and conditions of any bona fide offer
not take advantage of their knowledge of or 6.6. Group Transfers: A group transfer involves the purchasing Amway products or services as a received by and deemed acceptable by the
association with other IBOs whom they did not transfer of an IBO with one or more downline IBOs. Customer. selling IBO;
personally register, including their knowledge resulting
6.6.1. An IBO who wishes to transfer to a different 6.7.3. Two-Year Inactivity: An IBO who transfers to 6.8.1.3. The third option, exercisable so long
from or relating to Line of Sponsorship Information, in
sponsor with one or more downline IBOs may do so a new sponsor, or who registers under a different as the first or second options above have not
order to promote and expand such other business
only with the express approval of Amway in sponsor after 6 months of inactivity, may not been exercised, belongs to any one of the
ventures.
writing. In addition, an IBO must submit a written sponsor any IBO who was previously upline or selling IBO’s personally registered IBOs;
6.3.1. Every IBO agrees not to solicit, directly or request to Amway accompanied by (a) written downline to him or her, up to and down to the first
consent from all IBOs upline in the Line of qualified Platinum unless at least two years have 6.8.1.4. The fourth option, exercisable so long
indirectly, other IBOs whom he or she did not
Sponsorship up to and including the first elapsed since the expiration of the sponsored as the first, second or third options above have
personally sponsor in order to sell, offer to sell or
qualified Platinum and also the first qualified IBO’s contract. not been exercised, belongs to any qualified
promote other products, services, business
Emerald, (b) written consent of all IBOs whom the Platinum IBO or above, either up or down the
opportunities, investments, securities or loans not
6.7.4. Two-Year Inactivity (Joining an Existing IB): Line of Sponsorship from the selling IBO to the
offered through or by Amway. Every IBO agrees transferring IBO wishes to transfer with him or her,
Former IBOs may not be added to an existing IB next qualified Diamond;
not to sell, offer to sell or promote any other (c) written consent by the new sponsor and his or
for a period of 24 months following the expiration
business opportunities, products or services in her upline qualified Platinum to which the 6.8.1.5. The final option, exercisable so long as
of their IBO Contract.
connection with the Plan. Nothing in this Rule 6.3 requesting IBO wants to be transferred and (d) a the first, second, third or fourth options above
restricts the sale or distribution of Business statement indicating the business reason for the 6.8. Sale of an IB: An IBO who owns and operates an have not been exercised, belongs to any IBO in
Support Materials in accordance with Rule 7. transfer request. IB may sell his or her ownership interest in such IB only good standing.
to another IBO who is in compliance with the Rules of
6.3.2. Nothing in this Rule 6.3 restricts, for 6.6.2. No IBO currently qualified as a Silver 6.8.2. If Amway operates an IB and has entered
Conduct and who has the sufficient skills, experience,
example, an IBO regularly engaged in the Producer or above can be transferred with into a servicing agreement with an IBO to manage
judgment and resources to operate the IB, as
operation of a service station, auto dealership, downline IBOs under this Rule. the IB, Amway shall have the option of selling the
reasonably determined by Amway. Amway requires
retail establishment, salon or a professional IB to the servicing IBO.
6.6.3. An IBO formerly qualified as a Silver that specific terms of sale be included in any sales
service (e.g., law, medicine, dentistry or
Producer or above may be transferred with agreement. Such terms and a sample sales agreement 6.8.3. When an IB is sold, it will remain in its same
accounting) from serving customers who are IBOs
downline IBOs if more than 12 months have may be obtained from Amway. An IB may be sold only position in the Line of Sponsorship.
and who have sought them out. But an IBO shall
elapsed since the IBO was so qualified. with the express approval of Amway in writing.
not actively solicit the patronage of other IBOs 6.9. Mergers and Combinations of IBs: Mergers of
based on knowledge or information gained as a IBs resulting from failure to file a Renewal Agreement,
result of being an IBO. termination, resignation, death (with no designation of
succession by heirs), or some involuntary event or
cause beyond the control of any of the owners, are
permitted, only with the express approval of Amway
in writing.

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 RULES OF CONDUCT RULES OF CONDUCT
6.10. Two IBs Rule: An IBO may own or have an 6.12.1. During the pendency of a divorce, 6.12.5. Qualified Emeralds or above at the 6.13. Disposition of an IB: If an IBO resigns, fails to
ownership interest in only one IB except: (a) where two separation of marital property or dissolution time of divorce, separation of marital renew, terminates his or her IB, dies without
IBOs marry; (b) where an existing IB purchases another of a Legal entity, the IBOs must adopt one of property or dissolution may divide their IB, transferring the IB or is terminated by Amway, Amway
IB pursuant to Rule 6.8; or (c) where the IB is, or will be, the following methods of operation: (a) the thereby creating two separate IBs, one of shall decide the future of the IB in accordance with
passed on to a deceased person’s spouse, heirs or IBOs continue to operate the IB jointly on a which is sponsored by the other, in which these Rules.
other beneficiary in accordance with Rule 3.10. “business-as-usual” basis; (b) one or more case a “phantom IB” will be imposed over
IBOs relinquishes his or her right and interest their separate IBs. Under the “phantom IB” 7. Business Support Materials
6.11. Parent-Child Integration: As part of a plan to
in the IB; (c) the IBOs may agree on a third arrangement, regardless of how the parties Business Support Materials (BSM) as used in these
ensure the continuity of IBs owned by parents and
party to operate the IB, subject to express may split their IB, their separate IBs will be Rules means all products and services (including but
children (“Succession Plan”), parent and children IBOs
approval of Amway in writing; or (d) if the IBOs considered a single IB for purposes of not limited to business aids, books, magazines, flip
may integrate their respective IBs, provided that they
cannot agree on a third party, Amway shall determining bonuses to be paid to upline charts and other printed material, online literature,
submit a written request to Amway and meet the
appoint a third party to act as a receiver during IBOs. The parties will function as two internet websites, advertising, audio, video or digital
following:
the pendency of the divorce or dissolution if separate IBOs so far as themselves, their media, rallies, meetings and educational seminars and
a) the child(ren) must be personally registered by Amway determines that such an appointment respective IBs and their respective sponsored other types of materials and services) that are (i)
the parents; or the parents must be personally is necessary to prevent a negative impact on IBOs are concerned. The IB of one IBO is not designed to solicit and/or educate Prospects,
registered by the child(ren); the business. permitted to earn a Leadership Bonus or a Customers or prospective Customers of Amway™
Depth Bonus on the volume of the IB of the products or services, or to support, train, motivate
b) the parent’s IB and the child’s (children’s) IB 6.12.2. After a Final Decree or Judgment of
other IBO. Even though the original IB is and/or educate IBOs, or (ii) incorporate or use one or
must have operated as a separate IB for not less Divorce, a Final Separation Agreement or other
divided into two separate IBs, Amway may, if more of the Marks or Copyrighted Works of Amway, or
than two years by date of implementation; domestic contract that contains a Legally
the IBOs request, recognize both newly (iii) are otherwise offered with an explicit or implied
enforceable Property Settlement or Division of
c) the parent and the child(ren) shall be qualified created IBs as a single entity for purposes of sense of affiliation, connection or association with
Assets that addresses their IB, or after a final
at the level of Platinum or above as of the determining annual bonuses. Thus, the Amway. Unless otherwise specified in writing, IBOs
dissolution of a Legal entity, IBOs may: (a)
implementation date; “phantom IB” arrangement continues the acknowledge that nothing in this Rule, or in any other
agree to continue to operate their IB in the
previously existing IB for purposes of Rule, shall be construed or interpreted as a license or
d) in the event that the parent(s) or the child(ren) form of a partnership or other Legal entity
calculating and paying higher award level other permission to incorporate any LOS Information
is deceased or is not mentally or physically permitted under Rule 3.3; or (b) agree that one
bonuses to the IBOs of the original IB. If one into any BSM.
capable of running the IB before conditions b and IBO may relinquish all rights in the original IB
IBO registers another IBO of the original IB,
c above have occurred, the child(ren) or parent(s) to the other IBO(s), at which time the 7.1. General Rules on BSM
the downline sponsored IBO at maximum
inheriting the IB shall have the right to integrate withdrawing IBO is free to immediately register
Performance Bonus level may count as a 7.1.1. IBOs may sell BSM only in accordance with
the separate IBs in accordance with this Rule. under any sponsor.
qualifying “Group” for recognition purposes Rules 7.1 and 7.2. BSM created, used, promoted,
Once the above conditions have been met, the 6.12.3. IBOs below the level of qualified only. Amway will issue all annual bonus distributed, or offered for sale by or to IBOs must:
Legal & Ethics Committee of the IBOAI Board shall Platinum level may not divide their IB in the checks in the joint names of the IBOs of the (a) comply with all Quality Assurance Standards
review such request and provide Amway with a case of a divorce, separation of marital property original IB, leaving it to them to determine and any applicable Rules of Conduct relating to
recommendation. Amway may or may not approve or other dissolution. how the funds are to be divided. Whenever an their use, promotion and sale; (b) be submitted to
the request in light of such recommendation, the Emerald or above IB is divided, the IBOs of the Amway for review prior to use, promotion,
6.12.4. Upon approval by Amway following original IB may rely on their former pin level to
Succession Plan and the goals, objectives and submission of a signed written request, IBOs distribution or sale; (c) be authorized by Amway;
benefits of the Plan. The implementation of the meet the requisite pin-level qualification for and (d) if required for the category of BSM, bear
who are qualified at the Platinum level may an invitation to Amway-sponsored events for
integration or de-integration shall be on September divide their IB so that one of the IBOs is the the authorization number provided by Amway.
1 after at least one full fiscal year has passed since one fiscal year following the fiscal year in Except as explicitly provided in the Quality
sponsor of the other IBO. In such a case, all which the divorce, separation, or marital
Amway expressly approved the request in writing. Groups recognized by Amway as 25% Sponsor Assurance Standards, BSM may not be offered for
property or other dissolution occurred. Once an sale to Prospects. A copy of the currently
6.12. Divorce, Separation or Other Dissolution of a or above within the past one year (“qualified IB has been divided into two IBs, the new IBs
Groups”) will remain registered under the applicable Quality Assurance Standards is
Non-Spousal Partnership or Legal Entity: IBOs who will no longer be considered as a single
downline IBO. IBO(s) in the remaining Groups available from Amway upon request by IBOs
become involved in an action for divorce, separation of combined IB for purposes of future higher pin/
(“non-qualified Groups”) who wish to change eligible to sell or promote BSM.
marital property, or the dissolution of a non-spousal award recognition, but each separate IB must
partnership or Legal entity formed under Rule 3.3 must their positions in the Line of Sponsorship must thereafter qualify on its own. To effect a 7.1.2. Amway’s Satisfaction Guarantee and
continue to conduct themselves in compliance with the follow the requirements of the Individual or division of the IB and to permit the IBOs to Buy-Back Rules do not apply to materials not sold
Rules of Conduct. Group Transfer Rules at Rules 6.5 and 6.6, operate separate IBs, the IBOs must file a by Amway. BSM may only be sold subject to the
respectively. certified copy of the Final Decree or right of the purchaser to return such BSM for a
Judgment of Divorce, a Final Separation refund in accordance with the following:
Agreement or other domestic contract that
contains a Legally enforceable Property
Settlement or Division of Assets that
addresses their IB, or a final Dissolution
Agreement and any additional documents
requested by Amway.

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 RULES OF CONDUCT RULES OF CONDUCT
7.1.2.1. The terms of the refund policy, necessary to build a successful independent 7.2. Sale, Promotion and Distribution of BSM with 9. Complying with the IBO Contract
including terms regarding procedures for the business; and (d) advise the purchaser about Authorization from an Approved Provider (a (Remedies for Breach)
resolution of disputes and the responsible refund policies that apply to such BSM in supplier authorized by Amway to provide BSM
person for returns, must be clearly accordance with Rule 7.1.2. to IBOs or use BSM with Prospects, pursuant to Complying with the IBO Contract is essential for
communicated to the purchaser prior to any the ACCREDITATION PLUS Program) preserving a strong and viable business for IBOs and
7.1.4. No IBO may record an Amway presentation Amway. IBOs and Amway each have rights and
sale. In addition to any other person
without the prior specific written consent of 7.2.1. IBOs who wish to sell, promote or earn responsibilities in case of a breach of the IBO
designated to handle returns, the selling IBO
Amway. An IBO may make a single recording of the income from the sale of BSM from an Approved Contract.
and the Approved Provider shall be responsible
talks or presentations made by non-Amway Provider must have a written contract or other
for handling returns if the sale occurred under 9.1. Amway’s Rights and Responsibilities: When
employees at any Amway-sponsored meeting, binding authorization from that Approved Provider in
Rule 7.2 and the selling IBO together with the Amway detects a potential breach of the IBO
provided the recording is for their personal use and accordance with the Program, obligating the IBO
selling IBO’s upline Platinum IBO or above shall Contract, it will first investigate as appropriate. Before
is not reproduced for any purpose. to adhere to applicable Quality Assurance
be responsible for handling returns of all other taking enforcement action, Amway shall attempt to
Standards in connection with such activities.
sales. 7.1.5. Although the specific content of live contact the IBO in an effort to resolve the issue. If the
seminars, events, business meetings or other 7.2.2. IBOs who are authorized by an Approved communication does not resolve the issue, Amway
7.1.2.2. During the first 90 days following an
similar BSM must comply with the Quality Provider to sell, promote or distribute an may take any enforce­ment action authorized by the
IBO’s registration with Amway, the IBO may
Assurance Standards, such BSM do not require Approved Provider’s BSM in accordance with Rule IBO Contract including, but not limited to, one or any
return all BSM of any form purchased,
prior authorization from Amway unless or until the 7.2 require no further written authorization from combination of the following:
including meeting tickets, together with proof of
content is reduced to a fixed media (such as in Amway to conduct such activity.
purchase, for a 100% refund of the price paid 9.1.1. A written warning to an IBO and/or upline or
print, audio or video) for use with IBOs or
for such BSM. downline IBOs in the Line of Sponsorship.
Prospects. 8. Marks and Copyrighted Works
7.1.2.3. Except as provided in Rule 7.1.2.4, an 9.1.2. Retraining an IBO and/or upline or downline
7.1.6. An IBO who purchases, promotes, distributes Amway’s Marks and Copyrighted Works are important
IBO end user of BSM may return BSM IBOs in the Line of Sponsorship.
or offers BSM for sale shall use reasonable efforts to and valuable business assets of Amway. The Marks help
purchased, together with proof of purchase,
determine that the quantity and cost of BSM are identify the source and reputation of Amway products 9.1.3. Suspending some or all of the rights of an
within 180 days following purchase, for a
reasonably related to sales volume and profits of the and services worldwide and distinguish them from those IBO for a specified period of time, or until certain
refund on commercially reasonable terms.
purchaser’s IB. of competitors. Amway makes commercially reasonable conditions have been satisfied.
7.1.2.4. Except as provided in Rule 7.1.2.2, each efforts to protect the Marks from improper use,
7.1.7. IBOs who create, promote, distribute or sell including through the Rules of Conduct, accreditation 9.1.4. Withdrawing or denying an award, trip, pin
IBO who chooses to sell tickets to seminars,
BSM to other IBOs may not compensate or of Approved Providers and a corporate identity program recognition or other incentive.
events and other business meetings is
remunerate other IBOs in connection with such that requires the correct and consistent use of the
obligated to buy back tickets purchased for 9.1.5. Withholding any monthly or annual bonus
distribution, except in accordance with Rule 7.2. Marks, both in appearance and substance.
the purchaser’s personal use for a period of 30 or incentive payments.
days after the event, provided the dissatisfied 7.1.8. IBOs may organize seminars, events or 8.1. Use of Marks and Copyrighted Works: An IBO 9.1.6. Compensatory remedies, as applicable.
purchaser personally attended the event. Such business meetings for IBOs consistent with their may use Amway’s Marks and Copyrighted Works only
refund shall be for that portion of the cost of training obligations as sponsors or Platinums. 9.1.7. Transferring an IBO or a group of IBOs.
with Amway’s prior written permission, which may be
the event related to admission to the event,
7.1.9. IBOs creating, using, selling, promoting or expressed through general publication (to all IBOs) or
exclusive of the cost of travel, meals or hotel 9.1.8. Terminating an IBO Contract.
distributing BSM apart from Rule 7.2 must obtain through a specific writing to one or more IBOs. Without
accommodations.
appropriate written authorization from Amway in limitation, Amway may require conformity with If an IBO elects to challenge any action taken by
7.1.2.5. BSM offered in the form of website accordance with Rule 8 in order to use any Marks specifications, may require that materials that use Amway under this Rule, the IBO shall submit the issue
subscriptions and downloadable media are or otherwise use any copyrighted material or other Amway’s Marks and/or Copyrighted Works be sourced to the Dispute Resolution Procedures described in
subject to the following requirements, in intellectual property of Amway in connection with from Amway or an Amway-approved supplier and may Rule 11.
addition to Rule 7.1.2: (a) Purchasers such BSM. otherwise condition use of its Marks and Copyrighted
cancelling website subscriptions are entitled Works. Any permission granted by Amway shall
to a refund for unused, whole months of any 7.1.10. IBOs creating, using, selling, promoting or constitute a limited, non-exclusive, nontransferable and
prepaid subscription(s); and (b) Purchasers of distributing BSM must not infringe the copyrights revocable license to use such Marks and Copyrighted
downloadable media are entitled, if or intellectual property rights of Approved Works solely in connection with the Amway business in
dissatisfied, to obtain a replacement Providers, other IBOs or third parties. the Region. Subject to conditions and specifications
download of equal value within 30 days of the 7.1.11. IBOs qualified at the Platinum level or above published or specifically provided in writing from time to
purchase of the subject downloadable media. who are not affiliated with an Approved Provider time, the Marks and Copyrighted Works may be used
and who wish to sell, promote or distribute BSM only on:
7.1.3. IBOs promoting, selling, distributing or (a) exterior and interior office signs; (b) all forms of
offering BSM for sale must: (a) ensure that such must register with Amway by completing the
“Platinum BSM Registration Form” available from vehicle signs; (c) telephone listings; (d) promotional
BSM are not sold or offered for sale in conjunction literature; (e) stationery; (f) premiums; and (g) business
with the IBO’s registration with Amway; (b) provide the Business Support Materials Administration
Department. cards. Other proposed uses will be considered upon
purchasers of such BSM with any disclosures or request. Without limitation, Amway will not authorize an
other information that may be required by Amway IBO to use the Marks on imprinted checks.
from time to time; (c) clearly inform every IBO
purchasing BSM that purchasing BSM is optional,
is strictly voluntary, and may be helpful but is not

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 RULES OF CONDUCT RULES OF CONDUCT
9.2. IBO Rights and Responsibilities: If an IBO during the 30 days following such notice. The proposed competent jurisdiction including small claims court. In 11.4.1. Facilitative Mediation: In the event that a
believes that another IBO has breached the IBO changes shall become effective 15 days after the end of the all other cases the Parties will resolve the Dispute as Facilitative Mediation takes place, the IBOAI Board
Contract, the IBO first should contact the IBO in comment period, unless Amway makes further provided for under these Rules, up to and including provides experienced IBOs who are available to
question in an effort to resolve the issue. If an IBO modifications, after consultation with the IBOAI Board (and Binding Arbitration if necessary. serve as mediators (“IBOAI Mediator”).
believes that Amway has breached the IBO Contract, agreement in the case of Rule 11). Amway shall provide
11.1. Amendment Only with IBOAI Consent: This Rule 11.4.1.1. In cases where only IBOs and Amway
the IBO first shall contact Amway in an effort to resolve notice of any such further modifications on www.amway.
11 and its subparts shall be amended only by mutual are Parties to the Dispute and one or more
the issue. If discussion with either an IBO or Amway com 15 days prior to the effective date of such further
agreement between Amway and the IBOAI Board, and IBOs involved in the Dispute have not opted out
does not resolve the issue, the IBO may file a written modifications. These time periods may be shortened when it
such amendments shall not be retroactively applied to of the Mediation process pursuant to Rule 11.4,
complaint with Amway. The complaint should explain is necessary for a particular change to comply with a new
any dispute known to Amway or the IBOAI Board at the an IBOAI Mediator will serve and conduct a
the issue in as much detail as possible and include all law or other government mandate, to protect IBOs from
time of amendment. Facilitative Mediation with the Parties, unless
supporting documents. Amway will investigate as serious financial harm, or to protect the integrity of the Plan.
one or more IBOs involved in the Dispute
appropriate and take enforcement or corrective action Rule changes have prospective effect only. 11.2. Temporary or Preliminary Injunctive Relief:
objects to an IBOAI Mediator. In that case, the
under the IBO Contract, if necessary. If any issue Nothing in these Rules prevents the Parties from
10.3. Prior to the effective date of any proposed Rule Facilitative Mediation will take place with an
remains unresolved, it shall be submitted to the seeking temporary or preliminary injunctive or other
change, any IBO who is unwilling to accept a Rule independent neutral mediator acceptable to
Dispute Resolution Procedures described in Rule 11. relief from a court of competent jurisdiction,
change can, if he or she wishes, provide notice of his/ all Parties. Amway can provide a list of
notwithstanding the Parties’ obligation to participate in
9.2.1. An IBO who elects to challenge the validity her intent to resign from the Amway business on the possible mediators, but the Parties are not
the Mediation process or Binding Arbitration under Rule
of a Rule or other term of the IBO Contract shall effective date of the Rule change. Unless the proposed obligated to agree to any mediator on that list.
11.
first contact Amway in an effort to resolve the Rule change is withdrawn, the IBO’s resignation will
11.4.1.2. In cases where an Approved Provider
issue. If the IBO is not satisfied with Amway’s become effective and Amway will refund a pro rata 11.3. Confidentiality: The Parties, when involved in the
is a Party to the Dispute and one or more IBOs
response, the dispute shall be resolved in share of the IBO’s registration or renewal fee for that dispute resolution process in any manner, will not
involved in the Dispute have not opted out of
Arbitration under Rule 11.5. year. The resigning IBO may sell his or her IB in disclose to any other person not directly involved in the
the Mediation process pursuant to Rule 11.4,
accordance with Rule 6.8. In addition, the resigning dispute resolution process: (a) the substance of, or
9.3. Duty to Cooperate: All IBOs are required to the Facilitative Mediation will take place with
IBO can return any unused, marketable products basis for, the Dispute; (b) the content of any testimony
respond to inquiries and otherwise cooperate in a an independent neutral mediator acceptable
pursuant to Rule 4.10. or other information obtained through the dispute
timely fashion with any investigation conducted by to all Parties, unless all of the Parties involved
resolution process; or (c) the resolution (whether
Amway. Failure to respond to inquiries or to otherwise 11. Dispute Resolution Procedures in the Dispute stipulate to Facilitative
voluntary or not) of any matter that is subject to the
cooperate in a timely fashion is a breach of the IBO Mediation with an IBOAI Mediator. Amway can
Disputes arising out of or relating to an IB, the Plan or dispute resolution process. However, nothing in these
Contract and may result in Amway taking action provide a list of possible mediators, but the
all other terms of the IBO Contract, including, but not Rules shall preclude any one of the Parties from, in
against the IB. Parties are not obligated to agree to any
limited to, any state or federal statutory or common good faith, investigating a claim or defense, including
mediator on that list.
9.4. Non-Waiver: The failure of Amway or any IBO to law claims, as well as disputes involving Business interviewing witnesses and otherwise engaging in
enforce any breach of any provision of the IBO Support Materials (“Disputes”) shall be resolved in discovery. 11.4.1.3. In all instances where the Parties
Contract shall not constitute a waiver of any prior, accordance with this Rule. The dispute resolution cannot agree on a mediator within ten
11.4. Non-Binding Mediation: The Mediation process
concurrent or subsequent breach of the same or any procedures in this Rule apply to Disputes involving the business days of receiving the Request for
comprises two stages: Facilitative Mediation and a
other provision of the IBO Contract. following parties: (1) an IBO, a former IBO, or any such Mediation form, any Party upon notice to any
Hearing Panel, both of which are non-binding. The
IBO’s officers, directors, agents, or employees other Party involved in the Dispute may
10. Modification of the IBO Contract Mediation process is reciprocal and applies to all
(collectively referred to as “IBOs” for purposes of this request the American Arbitration Association
Parties. The Parties to a Dispute shall engage in the
Amway may modify the IBO Contract in accordance Rule 11); (2) Amway, Amway Canada Corporation, and (AAA) to select a mediator.
Mediation process set forth in this Rule 11.4 prior to
with the following procedures: any parent, subsidiary, affiliate, predecessor, or proceeding to Binding Arbitration pursuant to Rule 11.5; 11.4.1.4. Amway will pay the reasonable fees of
successor thereof, or any of their officers, directors, however, in Disputes where an IBO is a Party, the IBO the mediator for up to one full day, except that
10.1. Any changes to Rule 11 require mutual agreement agents, or employees (collectively referred to as
of the IBOAI Board and Amway. For all other Rules, may, at the IBO’s sole discretion, opt out of the if an Approved Provider is a Party, the
“Amway” for purposes of this Rule 11); and (3) an Mediation process at any time, before or during either Approved Provider is responsible for its pro
final decision-making authority on amendments to the Approved Provider, a former Approved Provider, or its
IBO Contract rests with Amway. Amway will, prior to the Facilitative Mediation or Hearing Panel stages, and rata share of the mediator’s fee.
officers, directors, agents, or employees (collectively may instead proceed directly to Binding Arbitration
final action, submit to the IBOAI Board for discussion, referred to as “Approved Providers” for purposes of this 11.4.1.5. The Facilitative Mediation shall take
evaluation and recommendation all changes in the IBO pursuant to
Rule 11). IBOs, Amway, and Approved Providers are place within 30 days of selection of a
Contract that materially affect IBOs. Rule 11.5.
collectively referred to for purposes of this Rule 11 as mediator. The Parties may agree to extend this
10.2. Amway will notify IBOs of the proposed changes the “Party” or “Parties”. Rule 11 is reciprocal and The Party first seeking resolution of a Dispute shall date by 30 days. And, the mediator may
subject to Rule 10.1 by making them available to review applies to all of the Parties. commence Facilitative Mediation, subject to an IBO’s extend the deadline an additional 30 days
by logging on to www.amway.com and solicit comments ability to opt out of the Mediation process as described upon the request of a Party (for a total of no
The only exception is when the claim made by an IBO above, by providing a Request for Mediation form to more than 90 days from the date of the
from IBOs concerning the proposed changes. Amway and or Amway is for a debt on account for product or
the IBOAI Board will consider any comments submitted the other affected Parties and, in any Dispute, the selection of a mediator).
services offered through or by Amway to or on behalf Amway Business Conduct and Rules Department. In
of the IBO, and the only Parties to that claim are 11.4.1.6. The Facilitative Mediation proceeding is
cases where the IBOAI will be involved in the Mediation
Amway and the IBO, and the total value of the claim is confidential and not open to the public; but any
process, a copy of the Request for Mediation will also
less than $10,000.00. In such cases the IBO or Amway participant may, if he or she chooses, be
be given to the IBOAI and the IBOAI Hearing Panel
may elect to pursue the claim in any court of accompanied by an attorney or another
Chairperson.
personal representative, such as an upline IBO
*
IBOAI is a registered trademark of Independent Business or a friend or family member, as long as the
Owners Association International.
representative agrees to the confidentiality
obligations set forth in Rule 11.3.
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11.4.1.7. All Parties who receive notice of the 11.4.2.2. The IBOAI Board Executive 11.5.1. The arbitration award shall be final and 11.5.5. Limitations: Unless prohibited by law,
Facilitative Mediation are required to Committee selects the Hearing Panel binding and judgment thereon may be entered by demand for arbitration by any Party shall be
participate, subject to an IBO’s ability to opt Chairperson, three additional Panel members, any court of competent jurisdiction. The Parties made within two years after the claim arose, but
out of the Mediation process pursuant to Rule and alternates who may serve on the Hearing acknowledge that this Binding Arbitration in no event after the date when the initiation of
11.4. The Parties are strongly encouraged to Panel. The Hearing Panel Chairperson will agreement is made pursuant to a transaction legal proceedings would have been barred by the
attend the Facilitative Mediation in person, but confirm that no Panel member presents a involving interstate commerce, and agree that the applicable statute of limitations. The two-year
are not required to do so. Should the Parties conflict of interest with respect to the matters Federal Arbitration Act shall apply in all cases and period or any shorter statutory limitations period
choose to attend in person, they are over which the Panel presides. Once selected, govern the interpretation and enforcement of the shall be tolled during the Mediation process
responsible for their own expenses. Failure by the Panel members are barred from Binding Arbitration agreement, arbitration rules described in Rule 11.4, provided that the Mediation
Amway or any disputing IBO to participate in discussing the Dispute with anyone before the and arbitration proceedings. process shall not revive any limitations period that
good faith is a breach of the IBO Contract, date of the hearing. Each Panel member and has expired before the time a Party invokes
11.5.2. Class Action Waiver: The Parties
and the Party found to be in breach shall the Parties involved receive a copy of the Rule 11.4.
mutually waive any right to assert any Dispute as
reimburse the other Parties for any expense entire Dispute file.
a class, collective or representative action, or to 11.5.6. Single Arbitrator: Unless all Parties to the
directly caused by the breach, as determined
11.4.2.3. The Parties shall exchange all participate in any Dispute asserted as such. arbitration agree otherwise, a single arbitrator
by the mediator.
documents on which they intend to rely shall be chosen, and Arbitrator candidates must
11.5.3. No Class Arbitration: The Parties agree
11.4.1.8. The mediator shall within 14 days during the hearing at least 10 days in have at least five years’ experience as a state or
that, if the Class Action Waiver at Rule 11.5.2 is
following the Facilitative Mediation provide the advance of the hearing. In addition, Parties federal judge or as a full-time ADR professional,
found to be void or unenforceable for any reason,
Parties with a written statement summarizing must submit to the Panel all documents on including substantial experience in commercial
any motion to have the Dispute certified as a
any agreement between the Parties resolving which they intend to rely in proving or arbitration.
class action, and any ensuing class action should
their Disputes and, for any Dispute not settled, defending their claim at least 10 days in
it be certified, must be heard and disposed of only 11.5.7. Arbitrability Issues to Be Decided By
declaring that the Parties are at an impasse. advance of the hearing. If a Party does not
by a court, and not by an arbitrator; class action Arbitrator: The Arbitrator, and not any federal,
The mediator may, at his/her discretion, submit such documents in a timely fashion,
claims cannot be submitted to arbitration under state, or local court or agency, shall have
recommend a resolution for any Dispute not the Hearing Panel Chairperson may refuse
these Rules under any circumstances. exclusive authority to resolve any dispute relating
settled in the Facilitative Mediation. Within 14 to allow their introduction.
to the interpretation, applicability, enforceability
days of receiving this summary, each Party 11.5.4. Commencement of Arbitration: The
11.4.2.4. The Chairperson of the Panel is or formation of this Agreement including, but not
shall state in writing whether or not it agrees complaining Party may file a demand for
empowered to control the conduct of the limited to any claim that all or any part of this
with any recommendation by the mediator, in arbitration with either the American Arbitration
hearing, and to have authorized persons Agreement is void or voidable.
whole or in part. Association (“AAA”) or JAMS. The arbitration will
administer an oath to any witness. The rules of
be commenced and conducted in accordance 11.5.8. Award: The arbitrator’s award shall be
11.4.2. Hearing Panel: If any part of the Dispute is evidence do not apply.
with the AAA or JAMS (whichever is chosen) fee limited to deciding the rights and responsibilities of
not resolved by Facilitative Mediation under Rule
11.4.2.5. When a voluntary resolution does not schedules and commercial arbitration rules and the Parties in the specific dispute being arbitrated.
11.4.1, any IBO who is a Party to the remaining
occur, the Hearing Panel, within 30 days this Rule 11.5. If there is any conflict between the The arbitrator’s award shall have no collateral
Dispute may request a Hearing Panel, subject to the
following completion of the hearing, will issue JAMS or AAA arbitration rules and this Rule 11.5, estoppel effect in any other proceeding. The
IBO’s ability to opt out of the Mediation process
to the Parties and Amway a written statement Rule 11.5 shall apply. The commercial arbitration arbitrator shall not provide a statement of reasons
pursuant to Rule 11.4. Any remaining Dispute
of facts and a non-binding recommendation rules and information about initiating an for his or her award unless requested to do so by
involving an Approved Provider, or any challenge to
for resolution, including, if appropriate, the arbitration may be obtained by (1) contacting AAA all Parties.
the impartiality of the Hearing Panel itself, shall go
imposition of certain sanctions. Within 14 days at 800-778-7879 or visiting www.adr.org/Rules, or
directly to Binding Arbitration without a Hearing 11.5.9. Consolidation: Similar claims involving
of receiving that recommendation each Party (2) contacting JAMS at 800-352-5267 or visiting
Panel. multiple Parties may be consolidated before a
shall inform the Panel and the other Parties in www.jamsadr.com/adr-rules-procedures.
single arbitrator if all Parties agree. The arbitrator
11.4.2.1. A Request for Hearing Panel Form writing whether that Party: (a) accepts the
11.5.4.1. If an IBO demands arbitration will decide any disputed consolidation issues.
must be filed with the Amway Business recommended resolution in its entirety; (b)
against Amway or an Approved Provider and
Conduct and Rules Department or the Hearing accepts some specific portions of the 11.5.10. Discovery: Notwithstanding any discovery
the IBO’s claim is less than $10,000, Amway
Panel Chairperson within 30 days after the recommended resolution and rejects the provisions in the JAMS or AAA commercial
or the Approved Provider, whichever is the
mediator’s written statement pursuant to Rule others; or (c) rejects the recommended arbitration rules incorporated in paragraph 11.5.4
applicable respondent, shall pay for all
11.4.1.8. Upon receipt of a request, the matter is resolution in its entirety. Any Party may above, no discovery shall occur in an arbitration
applicable fees of AAA or JAMS for initiating
scheduled for the next Hearing Panel session, demand arbitration of any unresolved Dispute under these Rules unless and until specifically
and administering the arbitration and the
which shall be not more than 60 days following under Rule 11.5. authorized by the arbitrator. The arbitrator shall
reasonable fees for the arbitrator for up to
the request. All Parties who receive notice of decide the amount, scope and timing of discovery
11.5. Binding Arbitration: The Parties shall submit any two days. If the IBO’s claim exceeds $10,000,
the hearing are required to participate, subject as appropriate in each case. In addition, before
Disputes that were not resolved through the Mediation applicable AAA or JAMS fees for initiating and
to an IBO’s ability to opt out of the Mediation requiring any discovery, the Parties involved in the
process described in Rule 11.4, to Binding Arbitration in administering the arbitration and reasonable
process pursuant to Rule 11.4, unless excused arbitration shall agree on an appropriate
accordance with this Rule 11.5. fees for the arbitrator shall be borne by the
by the Hearing Panel Chairperson or his/her confidentiality order consistent with the IBO
Parties equally.
designee. The Parties are strongly encouraged Contract. If they fail to agree, the arbitrator shall
to attend the hearing in person, but are not impose appropriate confidentiality requirements on
required to do so. Should the Parties choose to the Parties and witnesses.
attend in person, they are responsible for their
own expenses.

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