MW Mart is marketing its consumer products under Direct Selling System. Each individual associates himself with the company and purchases the goods directly from company. The customer pays the price and is given certain discount. In the system, an opportunity is given to interested persons to make the purchases as per the plan of the company by helping others as the benefits of all are interrelated. Consumer takes decision to buy product(s) not due to big advertisement but due to the quality of the product(s) and/or by the opinion and satisfaction of other consumers who are using the product(s). After using the products and feeling satisfied with quality and concept, user share his views with others and thus the group expands day by day. Company does not require any advertisement, any marketing agent, any area distributor or retailer for selling the products. Company saves lot of amount and distributes it to Loyal Customers as per the plan. This way, all Loyal Customers will become 'Brand Ambassadors' for MW Mart

A perusal of the above would show that the whole marketing system is based not on any positive advertisement, but on creating an acceptability and awareness amongst the society, by actual use of the products by some members of the society and deriving satisfaction out of the same. For example, if “A” purchases a product from MW Mart and feels satisfied with quality and usefulness of the same, he is expected to tell this to others, so that others would also follow his example and purchase the product. However, it may be noted that “A” is not under any obligation to do so. The sales pattern adopted by MW Mart is such that it encourages people to propose further in their group and each one’s related group expands.

In context to this, the persons may be interested in sharing their view about the product with others, MW Mart has devised method by which it is identified that some people have purchased the goods due to sharing of the views about the goods by “A” then “A” gets incentive/discount. Thus, in this way, group for making the purchases is formed on its own.

A person who desires to avail the incentive on purchase as per defined methodology framed by the company, has to get himself registered as a Loyal Customer with the MW Mart and follow other procedures laid down as under: -

APPLICATION

To become Loyal Customer:-

The person interested to become Loyal Customer is required to apply online by the application form available on the company's website. The necessary details of the applicant, sponsor are to be filled in the Form. In addition, the original scan copy of the applicant's photo, identity card, address proof and bank account details have to be uploaded.

The terms and conditions given with the application are to be read and accepted. After that an OTP comes in the mobile number given in the application. After the OTP is entered, the application is received by the company.

List of the documents to be uploaded along with application form for becoming a Loyal Customer are as under:-

i. A colorful photo passport size

ii. That he is clearly understood that there is no guaranteed or fixed incentive in this system. Incentive is not linked with the number of Loyal Customer in the group, rather it is linked only with the purchase volume in the group which may vary from month to month.

iii. That the relation between the Company and the Loyal Customer shall be governed by the rules and procedure, incentive Plan, Marketing Plan etc. available on website or provided by the company in any manner. The Loyal Customer further confirms that he/she has readout and understood the rules and procedure, incentive Plan, Marketing Plan etc. carefully and agrees to be bound by them.

iv. That Proposing to any individual for becoming the Loyal Customer and consent to join the group by such individual is exclusive and sole decision of the applicant. Company doesn’t have any role whatsoever in such decision of the applicant.

v. Loyal Customer is an independent party and nothing contained in these terms & conditions, the rules and procedure etc. shall be construed to

1. Give any party the power to direct and control the day-to-day activities of other.

2. Constitute the parties as partners, joint ventures, co-owners or otherwise, or

3. Allow Loyal Customers to create or assume any obligation on behalf of Company for any purpose whatsoever.

vi. That Loyal Customer is not an employee of Company and shall not be entitled to any employee’s benefits. Loyal Customer shall be responsible for paying all taxes whether direct or indirect including but not limited to Income Tax, GST and/ or any other taxes. All Legal, Statutory, financial and any other obligations associated with this association shall be the sole responsibility of Loyal Customer

vii. That Loyal Customer is not an Agent, not an authorized representative of the Company or not its service providers. Loyal Customer is not authorized to receive/accept any amount and /or make payment for and on behalf of the Company and any payment received by him/her from any party shall not be deemed to be received by the Company.

viii. If any relative as defined under the provisions of Income Tax Act, 1961 or defined under the provisions of Companies Act, 2013 of existing Loyal Customer desires to become Loyal Customer then he/she shall disclose the relationship with existing Loyal Customer to the company. It is company’s sole discretion to accept or reject the application of such relative.

c. Proposer, Sponsor & Group of Loyal Customers

i. Proposer: Loyal Customer who promotes any individual to become Loyal Customer in his/her group is termed as a Proposer.

ii. Sponsor: Loyal Customer, under whom new individual is joining, is termed as a sponsor.

iii. Group of Loyal Customers: All Loyal Customers under the particular Loyal Customer who being promoted by him/her and/or promoted by his group’s other Loyal Customer shall be termed as Particular Loyal Customer's Group.

PURCHASES

a. All products of the company comply with declarations required to be made under the Legal Metrology Act 2009 (1 of 2010)

b. MW Mart makes all arrangements for making the purchases directly from company by Loyal Customer as per /their choice.

c. Loyal Customer has the option to return the products purchased by him/her within 30 days from the date of purchases. If any defect is found in any of the MW Mart products purchased, then the same can be returned / exchanged within 30 days from the date of purchase. Such return shall be governed by the return policy published on the website of the company. The returned products must be supported with the bill of purchase and such product should not be damaged. The purchaser should ensure that the product is in good condition and intact.

INCENTIVE ON PURCHASES

a. Incentive is calculated on Business Volume of a product. Business Volume maybe equivalent to selling price or different as may be declared by the company from time to time. It can be seen on company’s website

b. Main Group and other Group (Groups of Loyal Customers under a Particular Proposer / Sponsor)

Note:

• Loyal Customer becomes eligible for Royalty Bonus only if his/her minimum purchase of MW Mart product is not less than 1000 Business Volume on accrual basis in the relevant month.

• Royalty is calculated on difference basis by deducting Royalty of sponsored group/groups from total Royalty.

• Royalty is calculated on monthly basis.

C. Force Majeure

The Company shall not be liable for any failure to perform its obligations where such failure has resulted due to Acts of Nature (including fire, flood, earthquake, storm, hurricane or other natural disaster), war, invasion, act of foreign enemies, hostilities (whether war is declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, nationalization, acquisition of the company’s asset by the government to any other government/semi government agency, civil/financial emergency by the government, any other government sanction, blockage, embargo, labour dispute, strike, pandemic, epidemic, lockout, lockdown, closure of business due to any reason beyond control, interruption or failure of electricity, Raw Material Supply Constraint, or any type of direction by Government (Central and / or State), Local Authority or any other government department.

D. Miscellaneous

i. Cumulative Rights

Each of the rights of the Parties under this arrangement are independent, cumulative and without prejudice to all other rights available to them, and the exercise or non-exercise of any such rights shall not prejudice or constitute a waiver of any other right of a Party, whether under this arrangement or otherwise.

ii. Assignment

Subject to the provisions of this arrangement, this arrangement is personal to the Company and the Loyal Customer shall not be capable of assignment.

iii. Waiver

No delay or omission to exercise any right, power or remedy accruing to any Party, upon any breach or default of any Party hereto under this Agreement, shall impair any such right, power or remedy of any Party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach or default thereafter occurring; nor shall any waiver of any other breach or default theretofore or thereafter occurring. No waiver of any breach of any provision of this arrangement shall constitute a waiver of any prior, concurrent, or subsequent breach of the same or any other provisions hereof, and no waiver shall be effective unless made in writing and shall be effective only to the extent specifically set forth in such writing and signed by an authorized representative of the waiving Party.

iv. Severability

Each obligation under this arrangement shall be treated as a separate obligation and shall be severally enforceable as such in the event of any obligation or obligations being or becoming unenforceable in whole or in part. To the extent that any provision or provisions of this arrangement are considered illegal or becomes or is declared by a court of competent jurisdiction to be, invalid, illegal, or unenforceable, they shall be deemed to be deleted from this arrangement and any such deletion shall not affect the enforceability of the remainder of this arrangement clauses not so deleted, provided the fundamental terms of this arrangement clauses are not altered.

E. Solemnly affirm and declare as follows:

i. That I have read and understood the terms and conditions for appointment of Loyal Customer of the Company.

ii. I have also gone through the Company's official website, printed materials, brochures and convinced about the business and I have applied to appoint me as a Brand Ambassador on my own volition.

iii. I declare that I have not been given any assurance or promise or inducement by the Company or its Directors with regard to any fixed incentive, prize or benefit on account of the products purchased by me.

iv. I have clearly understood that eligibility of purchase incentives exclusively depends on my performance in Business volume as per the plan. I further agree that company reserves the right to change the Business Plan and incentive thereon at any point of time without any prior notice.

v. I hereby declare that all the informations furnished by me are true and correct. Company shall be at liberty to take any action against me including but not limited to immediate termination in case it is discovered at any stage that any wrong/false/misleading information to the Company or other Loyal Customers.

vi. I undertake not to misguide or induce dishonestly anybody to become Loyal Customer of the Company.

vii. I hereby agree and adhere to the terms and conditions as stipulated along with the application form and as mentioned above to agree to purchase the product as Consumer.