BENEFICIAL INTEREST: ONE MODERE ACCOUNT PER SOCIAL MARKETER

MODERE is committed to leading the industry with the highest standard of ethical business practices and a vision of opportunity for everyone.

The Company recognises that Social Marketers are self-employed contractors of Modere who seek a supplemental income. The Company rewards Social Marketers for promoting Modere to prospect Customers who subsequently order Modere product, and for building high-performing teams. While conducting such Modere activities, Modere expect Social Marketers to adhere to the conditions outlined in the Policies and Procedures and in guidelines issued by Modere.

Modere’s business model is Social Retail. The business model entails that the Modere brand, products and opportunity are promoted by Social Marketers via curiosity posts on social media.

To support their Modere activity we have noticed that Social Marketers devise alternative business models that conflict with Modere’s business model and with the Social Marketer Business Ethics. One of these alternatives appears to be to operate one or more Customer accounts and, possibly, promote Modere via such Customer accounts.

This article is provided as a reminder of the policy that Social Marketers may operate or have beneficial interest in only one Modere Social Marketer account to the exclusion of a Customer account or another Social Marketer account. Also, the spouse (or common law partner) of a Modere Social Marketer may not register as a Modere Customer. An exception to this policy will be considered on a case-by-case basis if two Social Marketers marry or in cases of a Social Marketer receiving an interest in another Social Marketer account through inheritance from an immediate family member. Requests for exceptions to this policy must be submitted in writing to the Modere Social Marketer Education & Compliance Department (compliance@modere.eu).

Modere understand beneficial interest in a Social Marketer account as the benefit a person derives or may derive from the Social Marketer account. The most obvious individuals who have a beneficial interest in a Social Marketer account are the Social Marketer, the Social Marketer’s (common-law) partner/spouse and/or children who partially or wholly depend on the Social Marketer for their subsistence. Beneficial interest may extend beyond the Social Marketer’s immediate family.

Policies and Procedures

SECTION 4: OPERATING A MODERE BUSINESS

4.3 ONE MODERE ACCOUNT PER SOCIAL MARKETER

Modere Social Marketers may own, operate, or have beneficial interest in only one Modere Social Marketer account to the exclusion of a Customer account or another Social Marketer account. Social Marketers shall not use business entities, trusts, or other devices to avoid this policy. Spouses (including common law partners) may jointly hold one Modere Social Marketer account as allowed by local law. An exception to this policy will be considered on a case-by-case basis if two Social Marketers marry or in cases of a Social Marketer receiving an interest in another Social Marketer account through inheritance from an immediate family member. Requests for exceptions to this policy must be submitted in writing to the Modere Social Marketer Education & Compliance Department (compliance@modere.eu). Additionally, in cases where exceptions are approved, all other conditions of Beneficial Interest rules apply to both Social Marketer accounts.

The spouse (or common law partner) of a Modere Social Marketer may not register as a Modere Customer.

4.3.1 CHILDREN LIVING AT HOME

A Social Marketer’s child who is over the age of majority (usually 18) and residing in the same household as the Social Marketer may own a Modere Social Marketer account independently from his or her parent. However, the Social Marketer account owned and operated by the child must be a bona fide Social Marketer account separate and apart from the parent’s Social Marketer account and no beneficial interest in the parent’s Social Marketer business may exist. A Social Marketer’s child need not be sponsored by his or her Social Marketer parent, nor be in the same line of sponsorship as his or her Social Marketer parent.

4.3.2 ACTIONS OF HOUSEHOLD MEMBERS OR AFFILIATED INDIVIDUALS.

If any Beneficial Interest holder of a Social Marketer’s account engages in any activity which, if performed by the Social Marketer, would violate any provision of the Agreement, such activity shall be deemed a violation by the Social Marketer and Modere may take disciplinary action against the Social Marketer pursuant to the Agreement. Similarly, if any individual associated in any way with a Social Marketer corporation, partnership, trust, or other entity (collectively “affiliated individual”) violates the Agreement, such action(s) shall be deemed a violation by the entity, and Modere may take disciplinary action against the entity.

SECTION 13: DEFINITIONS

Beneficial Interest: a physical or legal entity is deemed to have a Beneficial Interest in a Social Marketer account if they: (1) have any direct or indirect ownership in a Social Marketer account as an individual, partner, shareholder, member, manager, beneficiary, trustee, officer, director or principal of a Social Marketer account; (2) have any actual or de facto control over a Social Marketer account; (3) receive any income directly or indirectly from a Social Marketer account (other than the receipt of income pursuant to the Compensation Plan by an Upline Social Marketer); (4) receive familial financial support from a Social Marketer account; (5) receive spousal financial support derived from a Social Marketer account; (6) are a member of the Social Marketer’s immediate household; (7) are a spouse or co-habitant; or (8) have any other similar interest in a Social Marketer account.