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SuccessionPlanning

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Amway cannot provide legal advice on this matter. However, in consultation with your lawyer there are some options you may wish to consider.These include:1 / Add a name to your business2 / Integration3 / Appoint a manager4 / Gift or sell your business5 / Create a legal entity

Succession Planning is about ensuring your business continues after your passing or retirement from Amway. This helps to see that all your hard work in the Amway business does not go to waste and you can pass on your inheritable asset.

Please note this document is applicable to Independent Businesses (‘IBs’) in Australia and New Zealand only.

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For Independent Business Owners (‘IBOs’) that are currently at Platinum qualification or higher, an IBO can apply to have up to two additional names added to their business for succession purposes. Anyone added to the business must be 18 years or older and meet the requirements of being an IBO. You are strongly encouraged to provide training in preparation for them taking over your business.

To add a name to your business, complete an ‘Add Partner’/’Notification of Successors’ form found on the Amway Australia website and submit to Amway at aust_bu@amway.com.

Please see page 8 ‘Two IBOs on an IB’ for what happens next.

add a name to your business

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An IBO currently qualified at Platinum or higher may integrate their business with their child’s business which is also qualified at Platinum or higher. The child must be personally sponsored by their parent (or vice versa) and both businesses must have been active for at least 2 years before applying to integrate.

To apply, send your request in writing to aust_bu@amway.com. Any applications must be received by Amway at least 12 months prior to the integration taking effect. Integration will always take effect on 1st September.

More details can be found in rule 6.18 of the Rules of Conduct for Amway Business Owners.

Please see page 9 for what happens next.

integration2 /

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If an IBO will be away from their business (e.g. travelling overseas, medical reasons which prevent operating the business) for more than 3 consecutive months, the IBO can arrange with another IBO to operate their IB on their behalf for compensation. We strongly recommend the manager appointed to your business be your Platinum IBO or higher.

A request for a Management Agreement must be in writing and submitted to Amway for approval. Application forms can obtained by contacting Amway at ANZ-Legal&Rules@amway.com.

Appointing a Manager is usually a short or medium term solution. Please see page 9 for what happens next.

appoint a manager

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A. Sell your Business:An IBO may sell their IB to another IBO subject to Amway’s approval. There are conditions that need to be met and these can be found in rule 6.11 of the Rules of Conduct for Amway Business Owners. Your request must be submitted in writing to Amway ANZ-Legal&Rules@amway.com.

B. Gift your Business:Alternatively, if you wish to include your IB in your will, ensure your lawyer drafts your will with your intentions clear. This is subject to the laws of succession.

Please note if you wish to give your business to a minor, you should organise for a Management Agreement to be in place until they reach 18 years of age. If there is no Management Agreement in place for the nominated minor, then your business may be sold, transferred or permanently resigned upon your passing according to the Rules of Conduct for Amway Business Owners.

Below are two options you may wish to take subject to Amway’s approval.

sell or gift your business4 /

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You may wish to hold your IB as a corporate entity such as a Limited Liability Company. Ensure you obtain advice from your lawyer or accountant. Contact Amway to receive an application form. Complete and submit the form to hold your Amway Business as a Corporate Entity to aust_bu@amway.com.

If you hold your IB as a Limited Liability Company, then your business survives upon your passing.

See rule 3.5 – 3.10 Rules of Conduct for Amway Business Owners for more information.

create a legal entity

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Upon your passing, your Executor or next of kin will need to provide a Death Certificate or Notification to Amway at ANZ-Legal&Rules@amway.com. If this is not provided, your IB will eventually be considered abandoned in accordance with rule 13.1 of the Rules of Conduct for Amway Business Owners, subject to the laws on succession. This may mean your IB may be resigned at Amway’s discretion.

Your Executor will also need to provide your will or certified extract of the document to Amway. If the document identifies a specific beneficiary to inherit your business, your name will be removed from the IB and the new beneficiary details are added after they agree to abide by the Rules of Conduct and meet the conditions of being an IBO. If a specific beneficiary is not identified, your IB may be passed on in accordance with the laws of succession.

Upon your passing, a Death Certificate or Notification is to be provided to Amway at ANZ-Legal&Rules@amway.com. Your name is then removed from the IB and the business is left to the remaining owner. This is subject to the laws of succession. Please see rule 10.2 of the Rules of Conduct for Amway Business Owners for more information.

Note that a replacement name can be added following the same process as the standard add partner application listed above.

Where you are the sole owner of your IB:

Two IBOs on an IB:

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1 / Review these five options 2 / Consult your lawyer about preparing the necessary legal documents3 / Complete the Non-Binding Notification of Successors of an Amway

Independent Business on Death or Disability form and return it to Amway.

nextsteps?

NOTE** A will, or any other equivalent document such as a court order, will take precedence over any succession planning requests that are already in place with Amway.

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NON-BINDING NOTIFICATION OF SUCCESSORS OF AN AMWAY INDEPENDENT BUSINESS ON DEATH OR INCAPACITY

WARNING: THIS NOTIFICATION OF SUCCESSORS OF AN AMWAY BUSINESS ON DEATH OR INCAPACITY OF AN AMWAY INDEPENDENT BUSINESS OWNER DOES NOT CREATE A LEGALLY BINDING TRANSFER OF YOUR AMWAY BUSINESS(ES). THIS IS A NON-BINDING NOTIFICATION TO AMWAY OF PERSONS YOU HAVE NAMED TO SUCCEED OR MANAGE YOUR BUSINESS(ES) UPON YOUR DEATH OR DISABILITY. YOU MUST CONTACT A LAWYER TO HELP PREPARE THE NECESSARY LEGAL DOCUMENTS TO TRANSFER OWNERSHIP OF YOUR AMWAY BUSINESS(ES) UPON YOUR DEATH OR MANAGE YOUR AMWAY BUSINESS(ES) IN THE EVENT OF YOUR INCAPACITY. THESE INSTRUCTIONS WILL BE SUBJECT TO AMWAY’S APPROVAL ACCORDING TO AMWAY’S RULES OF CONDUCT, THE IBO CONTRACT AND THE LAWS OF SUCCESSION.

I have designated by separate document the persons named below, in the same priority order in which they appear listed on this Form, as manager(s) of my Amway Business(es) upon my incapacity, or as successor(s) to my Amway Business(es) upon my death, in accordance with the laws of succes-sion. I understand and agree that Amway is not legally obligated by way of this notification to accept the individuals designated below as successors to and/or managers of my Amway Business(es). I further accept that the persons designated below will have no legal rights by way of this notification to succeed to my Amway Business(es) upon my death or to manage my Amway Business(es) upon my incapacity.

IBO’s Name and Number Successor(s) Manager(s)1.

2.

3.

4.

5.

Name (Print) Signature Date (dd/mm/yy)

Please keep a copy of this Form for your records and send the original to Amway (attn Business Rules, Amway, PO Box 8047, Baulkham Hills NSW 2153, Australia).

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Notes:

amway.com.au / amway.co.nz