Instructions and Explanation of the System

General

These Instructions and Explanations of the System are intended to be used for the proper and effective implementation of Platinum’s sales and marketing system as well as to preserve its integrity.

Platinum Identification Number (Platinum ID)
Independent, self-employed Platinum Europe distributors (referred to below as “Platinum distributors or distributors) who register by phone or on the Internet (www.platinumeurope.biz/Name or www.platinumeurope.biz/eu/Name) are automatically given a Platinum identification number (Platinum ID). Independent distributors who register by mail or fax are automatically given a Platinum ID if the distributor application has been received and has been accepted and processed. From this point on the Platinum ID is used for all correspondence and enquiries relating to the Platinum distributor.

Legal Entities
Legal entities may become distributors if a distributor application and the articles of association are submitted, signed by the director or manager. Platinum considers up to two individuals as representatives of a legal entity.
Platinum will accept the dissolution of a legal entity if an agreement exists that is signed by all the representatives of a legal entity or if this information is provided by a public or legal body.

Guidelines for Individuals Without a Sponsor
If a customer presents a distributor application to Platinum and provides no information about who recommended the company to them or who they would like to have as their sponsor, they shall receive a customer number directly from the company (“orphan account”), be enrolled as a distributor and may place orders.
Platinum shall contact the customer and try to find out who recommended the company to them. If it turns out that a Platinum distributor recommended the company to the customer, this person shall be assigned to them as a sponsor.
If it turns out that no Platinum distributor has expressed a recommendation, Platinum shall select the person to be their sponsor within four weeks, based on who is geographically closest to them and who holds a ranking of Platinum team leader or a higher-qualified distributor. The former may accept this choice or designate a trusted distributor from their Platinum downline as a sponsor within four weeks.

A Sponsor’s Obligations
As a Platinum sponsor you are entitled to sponsor other individuals as Platinum distributors. Sponsors are responsible for:

• Initial training. It is important to make your Platinum distributor familiar with the products, the bonus plan and the guidelines for Platinum distributors. The most effective distributors will contact all their Platinum distributors regularly to make sure their sales training is efficient.
• The creation of accurate sponsorship and business documents.
• Compliance with the company’s guidelines. Sponsors must keep up-to-date with new guidelines and discuss them with their distributors to make sure they understand them.

Sponsoring a Prospect
If several Platinum distributors contact the same person, the independent Platinum distributor who the future distributor has selected first is considered the sponsor. The company reserves the right to settle any disputes and reach a final decision.

Change of Sponsor
Platinum is fundamentally opposed to any change of sponsor. A change of sponsor is allowed only in the following two cases:

• If sponsoring by the original sponsor has been carried out by unethical means. In such cases the company shall make the final decision.
• With the consent of the next six upline sponsors and Platinum’s executive board a sponsor may reassign a distributor to any other Platinum distributor.

Each change of sponsor must be approved by Platinum. To carry out a transfer, the signed application, along with the required approvals and a processing fee of €50 plus VAT must be submitted to Platinum.

Sale of an Organisation
A distributor who owns a Platinum organisation may sell their consultancy or even part of their consultancy under the conditions listed below. To retain the upline the organisation to be sold must remain at its original place in the organisation. Accordingly, the distributor must proceed with the sale as follows:
The first buy option is allocated to the sponsor who reserves the right during the entire sales negotiations to acquire the seller’s organisation, if they accept the price and the conditions of a fair offer by the seller.
The second buy option is allocated to the first upline sponsor (directly above the seller’s sponsor), who reserves the right during the entire sales negotiations to acquire the seller’s organisation, if they accept the price and the conditions of a fair offer by the seller. The third buy option is allocated to an outside party who

• Has enough experience in business activities so that they demonstrate a precise understanding of Platinum’s business;
• Understands Platinum’s corporate policies and shows a willingness to comply with them;
• Has sufficient resources to continue running the seller’s business and to guarantee the necessary training and support.

The sale of a distributor position is only finalised and ownership only transferred once it has been reviewed and approved by Platinum. The processing fee of €150 shall be paid as soon as the transaction has been completed.
Platinum will only agree to a fair sale. Any sale whose aim is merely to transfer a rank is prohibited.

Breach of Corporate Policies and Guidelines
Any distributor who is aware of a breach of the corporate policies or the distributor agreement by another distributor should point out this breach to the distributor in question and explain the reasons for this regulation. Most breaches are due to a lack of information. If the distributor continues to break the rules, however, Platinum should be notified.
If the company takes any disciplinary action, this is considered final.

Confidentiality vis-à-vis Manufacturers and Suppliers
Platinum’s business relationships with its suppliers and manufacturers are part of the company’s good will and are confidential. The Platinum distributor may not contact a representative of a Platinum supplier or manufacturer either directly or indirectly except at an event sponsored by Platinum, which this representative attends at Platinum’s invitation. A violation of this rule may result in termination of the distributor’s position and possible claims for damages, if the business relationship with the supplier or manufacturer is impaired or if Platinum otherwise incurs damages.

Guaranteed Personal Advice
Platinum distributors may do business with occasional customers but the products may not be placed on display, freely accessible to be taken from shelves or in a shop window. When selling Platinum products a personal consultation has to take place.

Purchase and Sale of Products

Warehouse Storage
If the distributor wishes to place products in storage, they may not stockpile more goods than they can normally sell or turn over within 30–60 days.

Dealing with the “Money Back Guarantee”
The distributor is responsible for dealing properly with the “money back guarantee” granted to their customers. They must comply with the following procedure in the process:
The distributor must reimburse the purchase price immediately.
They must endeavour to find out by asking the right questions regarding why the customer is not satisfied with the product. For example: “How much of it did you use? When did you use the product? Did you use the product regularly?" etc.
If the customer’s responses suggest that they have not used the product properly, the distributor must try to enlighten them on how to use it correctly.
The distributor shall return opened packs to Platinum in order to exchange them.

How to Deal with Product Returns and Exchanges
When dealing with any kind of product return or exchange, the distributor shall comply with the following steps:

• The distributor must determine with reference to the rules for return whether a return or exchange is possible.
• The distributor must request a return authorisation number (RA number) from customer service within 90 days of purchase of the product in question. Any product that is sent to Platinum without a prior goods return authorisation shall be returned to the sender.
• The RA number and the original order number shall be written and clearly visible on the outside of the package. The completed form for the return of the goods must be enclosed.

If this involves an incorrect delivery by the company or the delivery of a defective product, following confirmation by the company, the distributor may return the goods to Platinum.
The distributor shall ship the returns as registered or freight forward so that in case of loss a tracking request may be issued.
Platinum is liable in the case of returns only for incorrect delivery or delivery of a defective product for the loss or damage of the returned goods.

Dealing with Product Orders

Product Information
The distributor is advised to obtain accurate information from the Platinum catalogue, other product information sources and the pricelist about Platinum’s product range.

Order Processing
Orders are processed on the day on which Platinum receives them and the BV (commissionable volume) of a product applies for the month in which the order is received. (See the section on commission and bonus payments).

Online Ordering
To order online, please note the valid instructions in this case.

Order by Post or Fax
The distributor shall use the Platinum order form and pricelist to calculate their order. The order form must be completed in full. In the event that the distributor has not granted power of attorney to Platinum to debit their account or their credit card, the distributor’s credit card number and expiry date or bank details must be provided. The distributor must then sign in the space provided if they wish to pay by direct debit or bank collection.

Order by Phone
Orders may be placed by phone on weekdays during the published opening hours.
If doing so, the distributor should have their order, their ID number and bank details on hand. In addition, if on the phone, they should also provide the delivery address, item numbers and the number of requested products.

Back-up Order
A Back-Up Order is a monthly recurring order set-up by a Distributor which releases on the 21st of every month if a Distributor chooses not to purchase product orders totaling at least 50 BV by 6:59 AM Central European Time on the 21st of the month. An active Back-Up Order of 50 BV or more automatically qualifies a Distributor to be a Preferred Distributor.

Back-up Order Payment
It is the purchaser’s responsibility to ensure regular monthly payment for the Back-up Order delivery. Platinum is not responsible if the purchaser does not receive a product, a qualification or a payment because Platinum has not received the money for the Back-up Order due to insufficient or invalid information.
Back-up orders are valid for at least one month. After this time, the order may be changed, as long as the change is made 10 days before the next Back-up Order delivery date. The changes are then included in the next Back-up Order delivery.

Payment Methods
There are several options to pay for an order: by cash, by credit card (Visa or MasterCard), by bank transfer in advance or by direct debit/bank collection.
Bank transfers, in addition to the amount payable for the ordered items, must also include the cost of postage and packing. The distributor’s name, address and phone number should also be provided to deal with any queries along with the order number, which the distributor has received from customer service.
If payment is by direct debit/bank collection, the distributor must issue an appropriate power of attorney to Platinum. This authorises Platinum to debit the amounts for any orders by the distributor from their bank account. A signed order form permits Platinum to deduct money from the designated account only for this one order.
If paying by credit card the amount is submitted for confirmation by the distributor’s credit card company before the order is processed. If the credit card company does not confirm the payment, Platinum shall contact the credit cardholder. If the payment cannot be processed promptly, the order is cancelled.
Orders cannot be executed on account or paid by cash on delivery.

Delivery
Orders are delivered to a physical address. For an extra charge express delivery can be arranged. To facilitate delivery the precise address and phone number are required.
Shipping is normally carried out within 24 hours of receipt of an order, except for weekends and public holidays.

Back Orders
Platinum ships any products that are in stock. If a product cannot be supplied at the present time, it is treated as a not yet completed order or back order and the product is delivered to the distributor postage paid as soon as Platinum receives it. The personal qualification volume (PQV) of back orders is attributed to the distributor’s original order.

Checking Deliveries
On receipt of the delivery the distributor must check the cartons thoroughly. Smaller packages are often located at the bottom of the carton so they are not always found immediately. The packaging material should only be discarded once the distributor has made sure that the delivery and invoice match. If a product that is listed on the invoice is not found, Platinum must be notified of this within 10 days of delivery.
If the distributor is notified of an unsuccessful attempt to deliver, they must contact the post office or parcel delivery service to arrange a new delivery date. If the distributor is unable to have the package delivered again or otherwise ensure its receipt, the package is returned to Platinum.

Payment Errors
If the sum transferred to Platinum for an order does not match the payable amount, this is automatically regulated as follows:
In the event of underpayment Platinum shall notify the distributor. In this case the missing amount must be paid before the goods are delivered. In the event of overpayment the extra amount will be credited to the distributor.

Delivery Loss or Damage
In the event of external damage to a package the delivery service must be notified of this immediately, so that they can acknowledge the damage on the spot. Subsequent claims for shipping damages will not be accepted by delivery services and the post office.
If it turns out that the goods are damaged only when the package is opened, Platinum’s customer service should be notified in order to agree on further steps.

Promotion and Advertising

Advertising Guidelines
To advertise products and the business plan, only documents provided or approved by Platinum may be used. Any use of unauthorised advertising or marketing materials may result in termination of the distributor agreement.

Medical Statements
Platinum distributors are not permitted to issue any medical or treatment-related statements in connection with Platinum products. If a distributor speaks about their own experience, it is important that they do not claim that the products in question have had a medicinal effect. If a customer has a medical problem, do nothing more than advise them to consult a doctor.

Relabelling or Repackaging of a Product
It is not permitted to relabel or repackage any of the company’s products.

Brand Names
The name Platinum Health Europe and the names of all Platinum products are registered trademarks, whose owner or licensee is Platinum Health Products, Inc. Only Platinum is entitled to manufacture and market products and literature under these brand names. The use of the Platinum name for products that have not been manufactured by Platinum is prohibited.
The company name, the brand names or the name of the proprietor, of senior executives, members of the board, employees or other professionals who work in close association with Platinum, may not be used in any form for advertising purposes without the company’s written consent.

Copyright Protected Materials
The copyright to all Platinum literature and materials is held by Platinum. These materials may not be duplicated or reprinted without written permission. Official business cards, letterhead and stationery bearing the Platinum name and logo may be ordered from Platinum. Any business cards, letterhead and literature the distributor uses must include the words “Independent distributor” wherever they may be used in association with Platinum.

Electronic Media
Platinum distributors may not use the name Platinum Health Products® or the names of Platinum products without Platinum’s express written approval either on the radio or television or at any other public events for the purpose of advertising Platinum or Platinum products. Distributors may not produce any electronic or other recordings of Platinum events or speeches for sales purposes without prior written permission. Platinum’s audio and video materials may not be duplicated for sales purposes or for personal use.

Print Ads
As independent entrepreneurs Platinum distributors may advertise their business in print advertisements, provided that they comply with the law. No approval by the company is required for this, if the company’s name or product names are not used and no medical statements are made about the company’s products.

Trade Fairs
Distributors are entitled to advertise their business at trade fairs. However, Platinum products must always be presented in a professional manner and the company must approve the use of its name and brand names on posters and banners, etc. Approval must be obtained at least two weeks before the fair.

Misleading Customers
A distributor may not describe themselves or answer the phone in such a way that might give the impression that they are an official representative of Platinum. The use of email addresses, websites or other electronic media may not create this impression either.

Statements About Income From Working as a Distributor
An independent distributor may not make any false or misleading statements about the income potential from working as a Platinum distributor. Any statement in relation to income or sales figures must be based on documented facts and verifiable average figures.

Third-party Materials and Products
Only Platinum products and materials, which the company has approved, may be sold or displayed at official Platinum events, at seminars or private presentations.

Media Enquiries
Given the increasing public interest in Platinum Europe, it is to be expected that the media will also contact Platinum distributors. In this case, contact should be made immediately with Platinum’s marketing department. No distributor is entitled to make any statement or comment to the media about the company, its employees, other independent distributors, Platinum’s sales and marketing system and/or its methods or products and as such go beyond the content approved by Platinum or issued in the company’s press releases. This ruling is intended to ensure a positive and consistent image. Any advertising in the media apart from the abovementioned print ads is not permitted without the company’s prior written permission.

Liability
Any breach of the company’s corporate policies and guidelines by a distributor may be grounds for terminating the distributor’s position. The distributor is liable for damages that occur through the misuse of brand names and materials which are owned by Platinum.

Internet

Domain Names, URLs, Email Addresses and Search Engines
Independent distributors are not permitted to include the company name and the company’s brands and product names, the proprietor’s name, the names of senior executives, members of the board and professionals who work closely with Platinum, including similar names that may lead to confusion, wholly or partly in domain names, URLs or email addresses. The distributor must ensure that key terms in search engines match the applicable contractual provisions and instructions (see Misleading Customers above).

Platinum Website for Distributors
To build a strong business, an excellent website may be helpful. Any flourishing business should have presence on the web.
We at Platinum are proud of the fact that we offer our independent distributors a modern website free of charge. This is only one of many ways in which we demonstrate our commitment to supporting distributors in developing their Platinum business.
Platinum websites for distributors include approved information about Platinum as a company, its products and Platinum’s business. All the images and information that relate to Platinum and its products and can be found on Platinum websites for distributors are copyright protected and Platinum reserves the rights to these images and information.
Platinum websites for distributors belong to Platinum and are available for the distributor's use. The liability for these websites lies with Platinum.

Personal Websites
Platinum distributors may have their own personal website to present themselves and promote their business. Platinum distributors are not permitted on these websites to use product names, the names of executives of the network and the company, the names of medical disorders and other terms, the mention of which is contradictory to the Mandatory Guidelines, Instructions and Explanations of the System, for entry in search engines or as a meta-name.
All images and information in relation to Platinum and its products are copyright protected and Platinum reserves the rights to these images and information.
Distributors may use the official product descriptions, media reports, images and scientific studies on the publicly accessible area of the Platinum website for personal or other independent websites but not the Wellness Insider, not even as excerpts. The texts extracted from the official Platinum website and published in any personal or independent website may under no circumstances be rewritten, misleadingly abridged or otherwise changed.
It must be emphasised here that Platinum accepts no liability for personal or independent websites, not even for texts officially published by Platinum. The responsibility lies solely with the owner of the personal or independent website.
Distributors may not use product descriptions, media reports, images, scientific studies and other content on the Platinum website area accessible only to Platinum distributors for personal or other independent websites.
The personal website of a Platinum distributor or other independent websites may not contain any medical statements about Platinum or other nutrition supplement products or describe any personal medical experiences after using Platinum products.
A Platinum distributor may not misrepresent the potential income or the amount of time and effort required to develop a Platinum business from home.
The company reserves the right to request from the distributor or their Internet service provider that content of any website which is associated in any way with Platinum, its products or Platinum’s consultancy activity be removed within five days, if the company establishes that this content is detrimental to its name, its brand names (trademarks), its copyright, its business plan or sales and marketing system.

Linking a Personal Website to a Distributor's Platinum Website
Only independent Platinum distributors may link a personal website to the official Platinum website or a Platinum website for distributors.
Platinum distributors may link a personal website to their Platinum website for independent distributors, as long as their personal website is compatible with Platinum policies, contractual provisions and instructions.

Spam Emails, Internet Bulletin Boards, Newsgroups and Chat Rooms
Distributors are strictly forbidden from sending out spam emails to promote Platinum products and/or their business activity with Platinum. This also applies to messages that allude to the company or its products without mentioning them specifically.
Spam or harassing emails include:

• Emails to unknown recipients, who have no relationship with the company, without their prior consent;
• Emails without a sender and without the recipient’s prior consent;
• Emails to specific newsgroups or bulletin boards, which deal with health or business information.

It is permissible to leave electronic messages on Internet bulletin boards and in newsgroups, as long as they do not violate Platinum policies, contractual rules and instructions.
Distributors who participate in chat rooms do so at their own risk and are responsible for any statements they make there. They should be aware of the policies in relation to medical statements and statements about the products and potential income during their chat room sessions.
Violations of the abovementioned guidelines may result in cancellation of the agreement.

Definition of Terms

Active Distributor
A distributor is considered active if they have purchased at least one Platinum product within 12 months. The primary task of Platinum distributors is to sell or arrange to sell Platinum products and services. In addition, they can do organisational work, utilise the bonus plan and sponsor new distributors in all those countries in which Platinum is represented.

Bonuses and Commissions
Payment for the results of the distributor’s organisational work (teamwork) in accordance with the company’s bonus plan is based on the distributor’s rank and the qualification requirements met in the respective billing month.

Business Volume (BV)
The point value assigned to each product that counts toward a distributor’s Personal Volume Qualification and used to calculate commissions. Sales aids have no BV, unless indicated as so in official Platinum publications.

Company This term is used in the Platinum distributor agreement, the Mandatory Guidelines, Instructions and Explanations of the System, as well as in the literature for Platinum Health Europe B. V.

Corporate Policies
The corporate policies of Platinum Europe are summarised in the documents Mandatory Guidelines and Instructions and Explanations of the System.

Distributor Price
The Distributor price is the price that Distributors pay for Platinum products and sales aids. The Distributor price is normally equivalent to the recommended retail price minus a 30% discount.

Downline
The distributor’s entire team is designated as the downline. These are all customers and distributors who have come to Platinum directly through them and their customers and distributors, etc.

First Line
The term first line refers to a distributor’s first line, i.e. a distributor on their first downline level.

Group Commission Volume (GCV)
The entire BV of the products that a distributor has purchased within a month, plus the BV of products that their personal, preferred and Back-up Order customers have purchased.

Level
Levels are referred to as the elements of a distributor’s downline grading, in which other distributors of this downline are positioned, for example, at “first level,” “second level,” and so on. A more detailed explanation is included in section IV Bonus Plan.

Loyalty Customer
Customer’s discount increases 5% every month of consecutive ordering up to a maximum of 20%. If Customer does not order in a month, the discount decreases 5% to a minimum of 0%. Example: Customer orders in January (0% off) and February (5% off) and March (10% off) and April (15% off), but then does not order in May … an order in June will be at 10% off (5% lower than April since there was no order in May).

Organisation/Downline
All distributors who are directly sponsored by a distributor as well as all their distributors and so on. For example, A sponsors B, who in turn sponsors C, who sponsors D, who in turn sponsors E - in this case B, C, D and E are in A’s organisation.

Payline
All the distributors in the downline organisation of a distributor for which the latter can receive bonuses.

Personal Group
A distributor’s personal group consists of all the customers to whom they sell products personally.

Personal Qualification Volume (PQV)
The entire volume of qualifying products, which a distributor has purchased within a month.

Premium Distributor
An individual or business entity that purchases a Starter Kit and follows the Platinum Policies & Procedures is a Platinum Distributor. When a Distributor activates a Back-Up Order of 50 BV or more, this Distributor becomes a Premium Distributor and receives an additional product discount (up to 10% more savings) in exchange for the Back-Up Order commitment.

Product Distributor
A distributor who has purchased a starter kit.

Profit from the Resale of Products (Resale Markup)
The difference between the distributor price and price the distributor charges for products they sell directly to a customer.

Ranking
The rank you can reach in accordance with the Platinum bonus plan.

Resale price
The recommended resale price is the price proposed for a Platinum product.

Sponsor
The sponsor is usually the person who contacts the new prospect first and has actively supported them in becoming a Platinum distributor. A new distributor is entered at the sponsor’s first level and becomes part of the sponsor’s organisation.

Starter Kit
Information, promotional and order documents for the newly independent Platinum distributor.

Upline
The sponsor of an independent distributor, the sponsor of the sponsor and so on. The upline shall jointly support the distributors’ business development.