Article 1. Purpose

This regulation aims to establish a sound and correct distribution culture and promote mutual prosperity between the Company and its members by ensuring both Atomy Co., Ltd and its members (hereinafter referred to as the “Members”) comply with the regulations in the sale of Atomy Co., Ltd goods (hereinafter referred to as the “Goods”) sold by Atomy Co., Ltd (hereinafter referred to as the “Company”).

Article 2. Scope of Application

The management of Atomy Co., Ltd members shall be governed by the provisions of this regulation, unless otherwise provided for in a separate regulation.

Article 3. Application of Relevant Laws

This regulation is based on the “Act on Door-to-Door Sales, Etc.”

Article 4. Subject of Application

This regulation applies to all members registered with the Company.

Article 5. Member Qualifications

Any Korean national may register as a Member without any restriction on qualification due to age, academic background, career, occupation, gender, religion, or physical disabilities. However, the registration of persons falling under the subparagraphs of Article 14 of the Act on Door-to-Door Sales, Etc., shall be restricted.

Article 6. Limitation on Registration

Those falling under any of the following shall be restricted from registration:

1. 1.Public officials at the central government or a local government, education officials, private school faculty members, or university/college students;
2. 2.Corporations or companies;
3. 3.Atomy Co., Ltd shareholders, executives or employees;
4. 4. “Person who fall under the Presidential Decree and fall under a reason for disqualification”
   under Article 15 (2) 4 of the Act on Door-to-Door Sales, Etc., and Article 21 of the Enforcement Decree of the same Act;
5. 5.Persons under 20 years of age at the time of registration;
6. 6.Persons recognized as incompetent under the law;
7. 7.Persons serving in the military at the time of registration or imprisoned in national correction facilities; or
8. 8.Foreigners (excluding those with legally obtained permission to stay in Korea whose periods of stay have not expired).

• Notwithstanding the above restrictions on registration, the Company may terminate the membership of a Member who registered in violation of the restrictions on registration specified above, and shall not be obliged to remedy any other disadvantage against the Member caused by the laws or restrictions imposed by the relevant agency prior to registration.

Article 7. Registration of New Members

1. 1.All members must be registered under their real names, and the Company shall recognize only the qualifications of the registered members themselves. Claims of rights against others shall not be accepted if made by members who joined under other persons’ names.
2. 2.New members may sign up for membership by completing self-authentication (mobile phone authentication or i-Pin authentication) and applying for membership registration with the sponsorship of already registered members. Foreigners must submit the following documents to the Company:
   1. ①A foreign resident registration card, an alien registration card, etc. (only those recognized as identification cards under the relevant laws), and a copy of their passport, pursuant to Article 6, subparagraph 8; and
   2. ②A copy of their national and citizen identification card for the country or countries of which they are a citizen.
3. 3.In cases where a member fails to meet the requirements for self-authentication at the time of membership registration, he or she may supplement his or her application by submitting the required materials in person or by mail.
4. 4.A married couple signing up for membership may only have a single member number.
   1. ①Couple members (a legally married couple) may register as a pair consisting of a main member and a sub-member. The registration and withdrawal procedures are the same as those applicable to regular members. (However, if the main member withdraws from membership, the sub-member is automatically withdrawn.)
   2. ②Allowances are paid only to the main member, and all tax obligations, including income reports, are borne by the main member. However, if a subsidiary business entity is registered, it shall be recognized as a joint business entity.
   3. ③A main member or a sub-member may be changed by submitting written consent to the Company for the change of the main member or the sub-member, by mutual agreement.
   4. ④A legally married couple shall have a single member number in principle even if they do not register as couple members.
   5. ⑤The Company shall recognize the spouse of a member as a Mastership Holder only if he or she is registered as a couple member (by granting qualification to join the Royal/Leaders Club and Mastership Holder Recognition Ceremonies, etc.).
   6. ⑥In cases where two members become a legally married couple, each shall be separately recognized as a member only if he or she is an Auto Sales Master or higher. Otherwise, in principle, the couple shall act under a single member number.
      If a legally married couple receive two separate member numbers, one for each member, the qualifications recognized for each member shall be based on his or her own position (qualification to join the Royal/Leaders Club, and participation in official events organized by the company).
5. 5.Divorce of a legally married couple
   1. ①In principle, when a legal couple gets divorced, membership shall be granted to the main member.
      However, in case membership is granted to a registered sub-member, a mutual agreement must be prepared, and the company must be notified.

Article 8. Approval of Member Qualifications

The membership shall take effect when the applicant is granted a unique membership number (ID) by the Company, and the approval of membership shall be under the sole authority of the Company.

Article 9. Definition of Member Qualifications

A Member registered with the Company shall be legally responsible for all activities he or she has performed as an independent Member who conducts sales activities on his or her own with respect to the business policies, marketing plans, and product purchases publicly presented by the Company.

Article 10. Member Information Management

At the time of registration, the Member shall clearly state his/her personal details, recommendations and sponsorship in accordance with the document procedures set by the Company, and responsibility for any defects in the submitted documents shall be borne by the submitting party. Furthermore, the Member shall notify the Company immediately of any changes made to his or her personal information (address, phone number, etc.) and other necessary information, and all responsibility (mail return, etc.) for non-notification shall be borne by the Member.

Article 11. Obligation to Acquire and Deliver Accurate Information

The Company shall provide all of the Company’s regulations and product information at the time of membership registration, and the Member shall familiarize himself or herself with all regulations and information at the same time as registration and deliver only the information officially presented by the Company, without any distortion or exaggeration of the content.

Article 12. Obligation of Due Diligence in Sales Activities

All Members shall engage in sales activities in accordance with company regulations once they have accurate information and confidence with regard to the Goods, after using the Goods themselves, and shall faithfully comply with the relevant laws and company regulations. All Members must provide their contact information to lower-level Members that they have recommended and sponsored and to the consumers (Members) who have purchased the Goods.

Article 13. Obligation to Provide Training Support and Complete Training

Since Members are paid allowances through faithful training support provided to lower-level members, they shall continue to perform their training and management duties for lower-level members and provide training according to their levels, and the Company may impose sanctions on those who have not completed training.

Article 14. Tax Obligations

If revenues are generated through the sale of Goods, etc., of the Company, all Members shall faithfully fulfill all tax obligations in accordance with the tax laws of the Republic of Korea.

Article 15. Obligation of Compliance with Relevant Laws and Regulations

All Members shall, upon registration, be deemed to have consented to the ‘Member Management Regulations,’ as well as the Company’s various other regulations. Therefore, Members shall comply with the relevant laws, as well as all regulations and training and management established by the Company, when conducting sales activities.

Article 16. Membership Validity Period

The validity period of membership shall be from the following month of the last purchase to the last day of the following 12 months.
However, in cases where a new member fails to record a purchase for six months after his or her signup, the validity period of the new member shall expire at the endof the sixth month.

Article 17. Suspension of Allowances for Cancellation of Purchase

In cases where a person cancels the purchase of a recommended product (hereinafter referred to as a “Return”), the purchase contract shall expire retroactively, in which case the reason for the payment of the allowance expires, and the previously paid allowance constitutes an unlawful gain and must be recovered and deducted.

Article 18. Exchange and Return Exchange

1. 1.“Exchange” refers to a system under the three-month warranty system in which a Member of the Company may request the exchange of a purchased product for the same product due to defects in the product within three months after the purchase.
2. 2.“Return exchange” refers to a system under the three-month warranty system in which a Member of the Company may request an exchange of a purchased product for a different product due to defects in the product within three months after the purchase.

Article 19. Change of Membership Title

In principle, a membership title may not be changed, except in the following cases:

1. 1.Inheritance due to death;
2. 2.In case of inheritance, the procedure of inheritance under the relevant laws shall apply.

Article 20. Membership Registration Without Consent

A Member may not register (recommend/sponsor) a specific person as a low-level Member without his or her consent or register a specific person as a Member using an ID card and a copy of his or her bankbook received for other purposes, such as insurance.

Article 20-1 Prohibition of Registration Under Other Persons’ Names or Inducement of Registration Under Other Persons’ Names

1. 1.A person may not work as a multi-level marketing salesperson without registering as a Member.
2. 2.A Member shall not directly or indirectly propose, coax, or otherwise encourage other members to change their lines.
3. 3.In cases where more than one year has elapsed since the date of registration under another person’s name, a Mastership Holder shall be suspended (suspension of allowance) for allowances for not less than three months and not more than one year. Even a Mastership Holder may be returned to the original position after a committee review depending on the complaint.
4. 4.In principle, a non-Mastership Holder shall be disciplined and returned to his or her original position. However, specific measures shall be determined by the committee for each case. In cases where a Member is returned to his or her original position, the Member may be returned to the original low-level sponsor position only upon the request of a lower-level Member whom the disciplined Member personally introduced to the Company. However, the matter shall be decided through a committee review.
5. 5.In cases where two years have elapsed since the date of registration under another person’s name after withdrawal, an objection cannot be raised. However, in cases where the existing Member (himself or herself) had his or her membership terminated due to making no purchase, the above period shall be two years from the date of termination.
6. 6.When promoted to a Mastership higher than a seller, the Company shall go through a verification process for compliance with the regulations, and in case of a violation, the Member shall be punished in accordance with the Member Management Regulations.

Article 21. Registration of Restricted Persons

A Member may not register a person who is not eligible to be a Member, such as a teacher (including a lecturer), a public official, a minor, a student, etc. In cases where he or she falls under Article 6 of this regulation, he or she shall withdraw in writing immediately or without delay.

Article 22. Forced Membership Registration or Sales Contract

A Member may not force the conclusion of a contract for the sale of Goods or exert force on the other party for the purpose of obstructing the cancellation of a purchase or the termination of a contract.

Article 23. Dissemination of False Information or Exaggerated Facts

1. 1.A Member may not report fraudulent information or exaggerated facts, use deceptive means to induce the other party to agree to a transaction, provide false information about the price and quality of the Goods, or commit acts that may mislead the other party into believing that the price and quality are significantly superior or more advantageous than they actually are, and may not express his or her arbitrary interpretation or opinion rather than the company’s official statement.
2. 2.A Member may not engage in any act of slandering, comparing with or disparaging other companies’ businesses (marketing plans, operation methods, products, etc.).

Article 24. Imposition of Burdens and Duties

A Member may not engage in an act that imposes any burden or duty exceeding “the level prescribed by Presidential Decree” on registered Members and those who wish to register, in any form including subscription fees, sales aids, and training expenses.

Article 25. Acts Regarding Cancellation of Purchase

A Member may not perform any of the following acts:

1. 1.Damaging part of a product or changing the address, phone number, etc. (loss of contact), for the purpose of obstructing the cancellation of a purchase or the termination of a contract, or causing a delay in the use of certain Goods for the purpose of discouraging the other party from returning the Goods;
   Returning or exchanging Goods without the purchaser’s consent;
2. 2.Registering as a Member on another line under his or her own name or another person’s name by deliberately returning Goods, returning Goods and withdrawing from membership at the same time, or inducing others to sign up as such; or
3. 3.Deliberately inducing returns from other Members and systematically returning them in groups for purposes such as moving to another company.

Article 26. Excessive Purchase or Forced Purchase

1. 1.A Member may not force the sale of Goods to the other party by, for example, supplying Goods unilaterally and demanding payment even though the other party did not offer to purchase them and, in particular, may not sell Goods to a lower-level Member.
2. 2.A Member may not purchase Goods excessively, place a burden on a lower-level Member, or force any purchase for the purpose of securing promotion or allowances for him/herself or a Mastership Holder.
3. 3.A Member may not force a consumer to purchase a product via telephone, fax, computer communication, etc., despite his or her statement that he or she has no intention of purchasing the product.

Article 27. Sales Activities Using Social Status

A Member may not force others to register as his or her low-level member using his or her social status, or register members by spreading false information that a celebrity, an entertainer, or other person had registered as a Member even though the person is not a member.

Article 28. Forced Communal Living, Separation from Families, and Other Abnormal Business Conduct

A Member may not force a Member or a person who intends to become a Member to leave his or her home for a long period or receive training or live in a communal living arrangement for business purposes against his or her will, or encourage or assist with similar acts.

Article 29. Act of Impersonating Company Employees and Exclusive Rights

1. 1.None of the Members are engaged in employment or partnership with the company and under no circumstances may they falsely impersonate the Company’s representative or its executive or employee.
2. 2.A Member may not falsely present the Company’s products as third-party products or pretend to have exclusive sales rights and regional monopoly.
3. 3.A Member may not allow an unregistered person to act as a registered Member.

Article 30. Exaggerated Advertisement and Neglect of Duty of Information Delivery

A Member may not convey wrong or exaggerated information about the Company’s Goods and allowance payment standards. Nor shall he or she sever contact after the sale of the Goods or deliver only the Goods without follow-up management.

Article 31. Promise of Easy Money and Solicitation of Sales

While explaining the company’s allowance payment criteria, a Member may not encourage customers with the promise of easy money or solicit their investment by stating that Members can make money quickly just by joining, or solicit purchases by persons who are unable to conduct businesses (students, minors, the elderly, incompetent persons, etc.).

Article 32. Use of Members’ Personal Information

A Member may not use information concerning consumers and related Members except as otherwise provided for in the relevant regulations of the Company’s membership activities, such as the delivery of goods/payment, etc.

Article 33. Mass Media Advertising and Sales Activities Using Mass Media Advertising

1. 1.Prohibition of the Production of Company Advertisements or Printed Materials through Mass Media
   1. ①No Company-related matter or product may be advertised in the mass media without the consent of the Company.
   2. ②No printed material featuring the Company (trademark, logo) may be created, distributed, or sold without the consent of the Company.
   3. ③A Member may not attach the Atomy Co., Ltd name or logo to the exterior of his business building or vehicle without prior approval from Atomy Co., Ltd (including banners and posters), or register telephone numbers using the Atomy Co., Ltd product name and logo.
   4. ④No lecture or training in the Atomy Co., Ltd system may be filmed or recorded (video or photograph), disclosed, posted or used for private purposes without consent (including other acts not agreed to or approved by head office, such as dissemination via internet bulletin boards, blogs, social networking sites, leaflets, etc.).
   5. ⑤Use of information provided through the official website online after processing or modification is not allowed.
2. 2.Prohibition of Display of Products or Sale of Products on Display
   1. ①A Member may not display or sell Atomy Co., Ltd products at shops, event halls, street stalls, offices, in vehicles or at other business facilities or supply the products to such facilities or recommend or suggest the installation of facilities.
   2. ②All Atomy Co., Ltd Members shall purchase the products directly from the Company and shall not supply the products to anyone who intends to purchase them for resale purposes.
3. 3.Prohibition of Product Alteration or Repackaging
   1. ①A Member may not add, alter, or delete any content of the products provided by the Company or sell the products by opening or damaging the product packaging.
   2. ②A Member may not add content to, alter, or delete the items or labels specified in the products and packaging, or sell the products after opening or damaging the packaging of said products. Products supplied by Atomy Co., Ltd may not be delivered in a way inconsistent with Atomy Co., Ltd’s marketing plans or sales methods.
4. 4.Prohibition of Website-Related Activities
   1. ①The Company’s trade name and logo, which may lead to the page being mistaken for the Company’s official website, may not be used without the Company’s consent. The company’s shopping mall may not be copied.
   2. ②The Company’s business may not be exaggerated with unconfirmed or insufficient information.
   3. ③No advertising emails using the Company’s name or trademark may be sent without the consent of the relevant parties.
   4. ④Membership recruitment activities using the internet or mobile services random targeting are not allowed.
   5. ⑤Member information of Members, sponsors and partners may not be disclosed (all personal information such as IDs, passwords, contact information, etc.).
   6. ⑥It is prohibited to sell products using the internet or mobile services without the prior consent or approval from head office. (Reseller)

Article 34. Abuse of Position and Neglect of Duty to Provide Training Support

A Member may not use his or her position to make a burdensome request to a lower-level Member or make a public statement or verbal abuse that significantly affects the qualifications of a lower-level Member, or neglect to stop wrongful business practices or receive allowances without training and sponsoring lower-level Members with due diligence.

Article 35. Criticism of Company and Members

A Member may not deliberately slander the Company or other Members in a public or private place or act in a way that results in defaming the Company or other Members, even if the Member only delivered the facts as they are.

Article 36. Transfer of Member Rights

In no event shall a member transfer or hand over his or her membership qualifications through unofficial channels, or transfer or hand over the rights and status of the sales organization and Members to others.

Article 37. Monetary Transaction and Failure to Deliver Goods

1. 1.A Member may not use the organization of the Company to engage in, or arrange, money transactions without the exchange of Goods, or de facto money transactions under the guise of the exchange of Goods.
2. 2.A Member shall deliver the Goods or ensure that the Goods are delivered properly after the sale (contract) and explain the product information (intended use, etc.) including a description of the product.

Article 38. Scandal Between Company and Member or between Members

A Member may not perform any of the following acts:

1. 1.Obstruction of business with excessive personal demands in violation of the Company’s business regulations
2. 2.Causing chaos (senseless acts), verbal abuse, or violence in any business spaces (the Company, centers, events halls) (including such acts committed via phone, text message, documents, email, social network, etc.);
3. 3.“verbal abuse” refers to intimidating or threatening the other party by insulting or upsetting said party with offensive language, terms, speech, or intonation;
4. 4.Causing controversy among Members for any reason, such as fraudulent use of money or credit cards;

Article 39. Forming Groups within Organization

Members may not form a separate group within the sales organization for purposes other than the sale of the goods (other businesses, socialization, and others) and openly refer to the group using a different name, put the purpose of the group over the sale of Goods, or exercise the personal influence of a Mastership Holder by organizing specific Members or Members in specific regions;

Article 40. Baseless Slander Against Other Members

A Member may not falsely submit collective petitions demanding disciplinary action against another Member without concrete evidence or propose the cancellation of a disciplinary action on the grounds of the resolution of a misunderstanding or conflict after filing a complaint;

Article 41. Unethical Business Conduct

A Member may not perform any of the following acts:

1. 1.Leaving one’s family due to infidelity or family discord and other unethical conduct between male and female Members.
   Even though it constitutes a personal matter, if the act is deemed to have a significant impact by disrupting the sales culture and order among Members, undermining the Company’s reputation, or setting a poor example for other Members as a Mastership Holder, the Company may terminate the Member’s membership or take other measures; or
2. 2.Submitting false documents in relation to membership registration and sales.

Article 42. Measures Against Cash Appropriation

A Member may not replace sales made in cash by another Member with sales made with the card of the Member or another person to appropriate the cash. This may result in suspension or termination of membership depending on the seriousness of the matter.

Article 43. Operation of Ethics Committee

In order to prevent the establishment of an incorrect business culture and damage to the good faith of other members, the company may take disciplinary actions after a review by the Ethics Committee in case of violation of the Act on Door-to-Door Sales, Etc., or these Regulations, and those subject to disciplinary actions shall comply with the decision.

1. 1.The Ethics Committee shall consist of five or more members who are employees, Members, etc., of the Company.
2. 2.A disciplinary procedure shall proceed in accordance with the following steps.
   1. ①In case of a violation, register the violation along with the relevant materials
   2. ②Request the Member in violation to provide an answer and supporting materials
   3. ③Check the facts and investigate the matter
   4. ④Notify the Member in violation of the sanctions decided upon by email or text message
   5. ⑤In cases where a corrective action is urgently required for the Member’s violation, or the violation is expected to cause a serious crisis, qualification restrictions may be imposed during the review period before making a final decision on that Member.
   6. ⑥Once the disciplinary action has been decided, the Company shall notify the person subject to the disciplinary action or notify (by email or text message) the relevant center and implement the sanctions. In cases where no objection is filed within seven days from the notification, the Member shall be deemed not to object to the action.
3. 3.A Member has an obligation to faithfully cooperate in Ethics Committee reviews, and any failure to comply with the investigation or interference with the review process may be subject to sanctions.
4. 4.A Member shall be responsible for any violation of the Atomy Co., Ltd Global Code of Ethics and shall comply with the decisions resulting from a review (however, the effective laws of the respective countries may be considered).

Article 44. Types of Sanctions

1. 1.Termination of membership: Loss of membership
2. 2.Suspended allowance: Allowances do not occur for a certain period of time
3. 3.Suspended membership: Membership status is suspended for a certain period of time
4. 4.Suspended allowance payment: Allowances are not to be paid for a certain period of time (paid in a lump sum when the suspension ends)
5. 5.Warning: In case of a minor and unintended violation of Atomy Co., Ltd member prohibitions, Ethics Regulation, or the Management Regulation
6. 6.Caution In case of a Member showing a lack of understanding of the regulations and a need for training (in cases where the sanctions are accompanied by training requirements, the Member must complete the training provided by head office)

Article 45. Warning and Caution

A Member may be subject to aggravated punishment if he or she receives two or more warnings in total for violation of the membership regulations.

Article 46. Suspension of Member Qualifications

1. 1.A Member’s membership is suspended in the following cases.
   1. ①A violation of the Act on Door-to-Door Sales, Etc., or the company’s regulations
2. 2.In cases where the Company becomes aware of a Member’s violation, it shall instruct the Member to comply with the regulations and, if the Member fails to remedy the violation, the Company may suspend his or her membership after prior notification (by email or text message).
3. 3.Members subject to the membership suspension include the relevant Member and Members in higher positions up to the top positions, and the suspension period shall be between a month up to a maximum of six months.
4. 4.A Member whose membership has been suspended shall be subject to the following restrictions as a Member during the period of suspension, and the detailed items of punishment and the level of punishment shall be determined through an Ethics Committee review:
   1. ①Loss of qualification to purchase and sell Goods;
   2. ②Loss of qualification to recommend and sponsor new Members;
   3. ③Prohibition from participating in the Atomy Co., Ltd System;
   4. ④Prohibition from entering the center; and
   5. ⑤In case of a center, reduced seating arrangements for the Success Academy and One-Day Seminars;
5. 5. In case of suspending membership, the Company may also impose disciplinary actions on the upper-level Members (applicable to all positions, not confined to the immediate superior positions) of the relevant Member based on a comprehensive consideration of whether they were aware of the violation beforehand, their obligations to provide adequate training support, and their responsibilities as Mastership Holders, depending on the seriousness of the matter.
6. 6.In cases where a Member subject to an aggravated punishment fails to comply with the sanctions or violates the regulations again, he or she shall be subject to aggravated punishment (even in cases where the Member received a previous disciplinary action, he or she may be punished with an aggravated or higher-level sanction).

Article 47. Withdrawal

A Member may withdraw from membership on his or her own volition via a notification (written, online, etc.).

Article 48. Termination of Membership (Exclusion)

1. 1.A Member’s membership is terminated in the following cases:
   1. ①Submitting false documents in connection with membership registration
   2. ②Causing a serious operating loss to the company;
      “serious operating loss” refers to financial loss by the Company due to a loss of company reputation, intentional mass return, or a lawsuit caused by a failure to comply with the Company regulations.
   3. ③Recommending (introduction, inducement/registering, etc.), promoting or selling products or businesses of other multi-level marketing companies or similar multi-level marketing companies (including door-to-door sales/sponsored door-to-door sales similar to multi-level marketing) to the Company’s Members
2. 2.The Company may terminate the membership of a Member who caused a serious controversy without first suspending his or her membership and a termination of membership terminates all legal relationship between the Member and the Company, and the Member may no longer exercise any of his or her rights as a Member.
3. 3.In case of terminating the membership of a Member, the Company may also impose disciplinary actions on the upper-level Members (applicable to all positions, not confined to the immediate superior positions) of the relevant Member based on a comprehensive consideration of whether they were aware of the violation beforehand, their obligations to provide adequate training support, and their responsibilities as Mastership Holders, depending on the seriousness of the matter.

Article 49. Re-registration of Members

1. 1.If a Member is automatically withdrawn from membership because he or she has not renewed his or her membership, the Member may register as a member on the day following the date of withdrawal. In case of a voluntary withdrawal, he or she may apply for registration only if he or she has not performed any activities for 12 months (365 days) from the date of withdrawal (hereinafter referred to as the “Inactive Period”).
   1. ①However, Sales Masters may only be re-registered after one year of inactivity from the date of automatic withdrawal, and Diamond Sales Masters and above may be re-registered after a two-year inactive period from the date of automatic withdrawal.
   2. ②Registration or withdrawal without consent is not accepted.
   3. ③A commission recipient’s withdrawal from sales without consent is not accepted.
2. 2.If a withdrawn Member fails to comply with the inactive period, the Member is returned to the previous member number and/or his or her Inactive Period shall be extended. In case of a Member who has had his or her membership terminated by a disciplinary action, the Company may permanently refuse to register him or her as a member.
3. 3.“Inactive Period” refers to a period after withdrawal during which all activities related to the following businesses are not performed:
   • Conducting sales activities in violation of Article 20-1;
   • All activities involving training, promotion, sales and support (or sponsorship) activities related to Atomy Co., Ltd businesses; or
   • Purchase of products other than for self-consumption purposes.
4. 4.With respect to a violation of the 12-month Inactive Period, existing sponsors may not file a complaint after two years have elapsed from the date of the violation.

Article 50. Public Notice

In order to foster a proper business culture, the Company may publicly announce in writing or through the company’s official website a list of the Members subject to a warning, membership suspension, or membership termination on account of a violation of these regulations.

Article 51. Non-Specified Matters

Matters not specified in these regulations shall be determined in accordance with the relevant laws, other companies’ regulations, and generally accepted commercial practices.

Article 1. Enforcement and Application

These regulations shall enter into force on the date of notification by the Company.

Article 2. Application of Regulations

Except as amended by these regulations and the Act on Door-to-Door Sales, Etc., matters arising before the enforcement of these regulations shall be governed by the provisions before the amendment.

Date Amended: December 20, 2017
Date Printed: December 26, 2017

1. 1.All Members must purchase Atomy Co., Ltd products directly from the Company.
2. 2.A Member may not possess excessive stock when making a new purchase, or over-purchase Goods beyond the amount required for self-consumption or sale to other consumers. In case of over-purchase, the Member shall be restricted from cancelling the purchase (return) under the Act on Door-to-Door Sales, Etc.
3. 3.Members of Atomy Co., Ltd must accurately understand their sales capabilities or level of consumption and purchase Goods accordingly.

1. Exchange of Goods

In cases where a consumer or a Member points out defects in the content or container of the purchased goods and requests an exchange, the Goods may be exchanged for the same Goods if the request is justified in relation to the warranty terms of the Goods.

2. Unsatisfactory Goods

In cases where a consumer or a Member expresses an intention to return the purchased Goods and requests a refund, the refund may be provided if the request is deemed justified in relation to the warranty terms of the Goods. However, in such cases, the consumer or Member shall return the Goods in accordance with the Act on Door-to-Door Sales, Etc., and express their intention to cancel the purchase in writing, and the Company shall return the balance of the payment for the Goods after deducting the previously paid general commission.

3. Overstock

Refunds are allowed for the return of unused Goods that can be resold. However, the Company may restrict the cancellation of purchases and future purchases of Goods to a Member who overstocked. If a Member does not return the Goods under his or her responsibility even though he or she has received a legitimate return request from a consumer who purchased the Goods, the purchaser may send a direct return request to Atomy Co., Ltd and Atomy Co., Ltd shall refund the amount to the purchaser. Atomy Co., Ltd shall exercise its reimbursement right against the Member who sold the Goods after providing a refund to the consumer (purchaser).

4. Returns Procedure

A non-consumer Member may cancel his or her purchase in writing within three months from the date of concluding the contract, except in cases where the Member falsely notifies the Company of his or her inventory or damages the Goods to the extent that it is difficult to resell them. A Member may return Goods to head office only after preparing a return application form and submitting it to Atomy Co., Ltd along with the purchase order and the transaction details, and acquiring approval for the return.

As a member of Atomy Co., Ltd, I agree to always act with a sense of responsibility and comply with the “Members’ Obligations” specified in the Member Handbook and the following provisions.

1. Maintenance of honor and dignity

As a Member of Atomy Co., Ltd, I will always act sincerely and truthfully, with pride and an exemplary attitude, and a sense of responsibility and community.

2. Compliance with Ethics Regulations and Enforcement Regulations

In conducting Atomy Co., Ltd business, I will familiarize myself with the terms of these Ethics Regulations, the Enforcement Regulations, and other regulations, rules, and guidelines, and engage in business based on them.

3. Obligation of familiarization with marketing plans and accurate notification

Realizing that Atomy Co., Ltd business requires earnest effort, I will familiarize myself with Atomy Co., Ltd’s marketing plans and gain knowledge about the Goods, and will not spread wrong ideas in the course of sales activities and will do my best with regard to continuous education and training. I will accept any disciplinary action from the Company for a violation under the above paragraph.

4. Customer Satisfaction Guarantee

By thoroughly understanding the customer satisfaction level with regard to the Goods sold and taking the required measures, I will make sure that consumers are informed of the quality of the Atomy Co., Ltd Goods without distortion, false information, or exaggeration. I will promptly and accurately handle customer complaints and return requests in accordance with the procedures specified in Atomy Co., Ltd official booklets so that no harm comes to customers.

5. Compliance with relevant national laws and bylaws

In conducting Atomy Co., Ltd business, I will comply with the Act on Door-to-Door Sales, Etc., and other national laws and the regulations established by the Company.

6. Punishment of Members in violation

In case of any violation of the company’s regulations such as these Ethics Regulations and the Enforcement Regulations, said case will be subject to sanctions decided by the Ethics Committee, such as restrictions on damage compensation or purchase of products, suspension of membership activities, suspension of general commission, and termination of membership.

Atomy is rewriting the history of network marketing.We resolve to take the lead in establishing a sound global Atomy culture with a belief in prioritizing honesty and integrity, principle-oriented attitude.

• First, I will not do any money transactions with locals (Atomy Members and those who wish to become Atomy Members).
• Second, I will not set up a local internet site, and I will not engage in any activities such as recruiting members, inducing sales, or unauthorized use of the Company.
• Third, I will not use exaggerated advertisements for promotion.
• Fourth, I will not change the marketing plan to conduct business.
• Fifth, I will not display and sell the Goods in stores, street shops, home shopping channels, beauty shops, etc.
• Sixth, I will not directly or indirectly induce or encourage locals (Atomy Members and those planning to become Atomy Members) to change their lines.
• Seventh, I will not engage in unethical business activities, including unethical conduct between male and female Members, such as undermining the Company’s reputation.
• Eighth, I will not make, distribute, sell, or use non-approved sales aids.
• Ninth, I will not impersonate an employee of the Company, or commit any acts that may mislead locals (Atomy Members and those planning to become Atomy Members) into mistaking me for one.
• Tenth, I will not hold a seminar that has not been approved by the Company.

I will take responsibility for any violation of the above Code of Ethics and accept any punishment for such violation.

This information on multi-level marketing sales is provided in accordance with Article 18 (1) of the Enforcement Rules of the Act on Door-to-Door Sales, Etc., as prescribed by the Fair Trade Commission.

1. 1.Multi-Level marketing sales refers to selling goods through a sales organization in which a salesperson who sells multi-level marketing goods sells those goods and recruits other persons as lower-level salespersons through a process comprised of at least three steps, instead of a general distribution channel such as manufacturer → wholesaler → retailer → consumer.
2. 2.Multi-Level marketing sales involves a gradual expansion of salesperson membership, and there may be cases where direct personal sales and sales to acquaintances cause harm to consumers.
3. 3.Pyramid selling, which has been a cause of serious social controversies, has been problematic in many respects: pyramid selling organizations have set the prices of the goods disproportionately high for their quality, unfairly demanded payments from those who wish to become salespersons, and forced salespersons to purchase goods or recruit lower-level salespersons, thus becoming a form of gambling in which the main source of revenue for salespersons was the recruitment of lower-level salespersons.
4. 4.The government implemented the Act on Door-to-Door Sales, Etc., to prevent multi-level marketing sales from becoming a form of gambling and causing harm to consumers, and to punish violations of the Act with corresponding punishments.

If someone invites you to become a multi-level marketing salesperson, or asks you to join a multi-level marketing sales organization as a multi-level marketing salesperson, please check the following first.

1. 1.Before joining as a salesperson, please make sure that the company you are trying to join is registered with the Korea Fair Trade Commission or the Mayor/Governor under the Act on Door-to-door Sales, etc. If you have any doubts, please contact the Korea Fair Trade Commission or the relevant city/province (if applicable), business organizations, or consumer organizations before finalizing your registration.
2. 2.If you plan to be a multi-level marketing salesperson, please carefully examine the company’s products to see if they are suitable for your role as a salesperson. Multi-Level marketing sales organizations do not operate stores or advertise their products. For this reason, the quality and prices of their goods should be competitive.
3. 3.If you want to become a multi-level marketing salesperson, please consider the standard of payment of general commission, and the average and distribution of sponsorship allowances paid to multi-level marketing salespersons, and the expected income opportunity.
4. 4.A multi-level marketing salesperson may withdraw from a multi-level marketing sales organization at any time by expressing his or her intention to withdraw, in which case the multi-level marketing business entity may not impose any conditions on the withdrawal.

1. 1. Multi-level marketing business entities are required to purchase consumer damage insurance policies. In case of purchasing goods or services (hereinafter referred to as “Goods and Services”) from a multi-level marketing business entity, please make sure to check if the entity is covered by consumer damage insurance and obtain a copy of the policy. If the multi-level marketing business entity does not refund the price of the Goods and Services even though you cancelled the purchase or terminated the contract (hereinafter referred to as a “Cancellation of Purchase”), or the entity does not provide the Goods and Services, you may seek reimbursement of all or part of the payment for the Goods and Services from the insurance company as provided for in the insurance terms and conditions.
2. 2.Within three months after the date of purchase, you may cancel your purchase and obtain a refund for the payments for the Goods and Services from the multi-level marketing business entity. The refunded amount is as follows.
   • The full amount paid if the purchase is cancelled within a month from the date of delivery
   • An agreed amount paid if the purchase is cancelled after a month and within two months from the date of delivery. The agreed amount must be at least the amount paid for the Goods and Services after a 5 percent deduction.
   • An agreed amount paid if the purchase is cancelled after two months and within three months from the date of delivery. The agreed amount must be at least the amount paid for the Goods and Services after a 7 percent deduction.
3. 3.You can obtain a refund of the amount paid for the Goods within three business days if you cancel the purchase and request a refund. If the multi-level marketing business entity does not provide the refund within three business days, you can receive a refund along with the overdue interest.
4. 4. In addition, in cases where a multi-level marketing salesperson sells goods to a consumer, and the consumer cancels the purchase within 14 days from the date of executing the contract (in any of the following cases, the date specified in each of the relevant subparagraphs), the price of the goods must be refunded.
   1. A.In cases where the Goods and Services were delivered after the execution of the contract, the date of delivery of the Goods and Services,
   2. B.If the salesperson is not able to cancel the purchase because a written contract was not provided, a written contract without the entity’s address was provided, or the entity changes its address, the day when the address of the multi-level marketing business entity was known or could have been known
   3. C.In cases where the contract does not contain provisions on the cancellation of purchases, the date when the salesperson became aware of, or could have become aware of, the fact that he or she can cancel the purchase,
   4. D.In cases where a multi-marketing business entity obstructs the cancellation of a purchase, the date on which the obstruction ended

The following companies are pyramid scheme organizations. If you know of any multi-level marketing sales organization that falls under any of the following, please immediately report to the City/Provincial Office, Korea Fair Trade Commission, police department, business organizations, consumer organizations, etc.

1. 1.The multi-level marketing business registration certificate or registration number is missing or unclear.
2. 2.The organization does not disclose data on the terms regarding the calculation and payment of general commission.
3. 3.The organization does not issue or issues poorly made multi-level marketing salesperson registration cards, multi-level marketing salesperson handbooks, etc.
4. 4.The organization sells high-priced products that cost more than KRW 1.6 million (including VAT).
5. 5.The organization’s return and refund regulations are unclear or not honored.
6. 6.The ratio of general commission is too high (exceeds 35% of the supply price of the goods to the salesperson).
7. 7.The organization induces persons to register as members through violence, coercion, and other semi-forcible means or threats.
8. 8.The organization demands more than KRW 10,000 as a registration fee or demands more than KRW 50,000 for registration as a salesperson.
9. 9.The organization imposes a duty on salespersons to purchase sales aids worth KRW 30,000 or more.
10. 10.Unlike the terms of general commission payment notified at the time of registration, a salesperson can maintain his or her status and receive general commission only by meeting a separately prescribed sales quota.
11. 11.A salesperson can generate revenue solely by recruiting others.
12. 12.The organization deliberately and frequently changes its address, phone number, etc.
13. 13.The organization sells the goods at significantly higher prices than similar products, or only deals in money.
14. 14.The organization forces salespersons or persons who wish to become a salesperson to complete training and live with others against his or her will.
15. 15.The organization coaxes persons under the false pretense of employment/job arrangement, briefing sessions, and training sessions without clarifying the purpose of recruiting salespersons.