SUPPLIER PAYMENT GUIDE

Expectations and requirements to facilitate accurate and timely payments to suppliers

Table of Contents 1) Procure-To-Pay Cycle 2) Payment Process Overview 3) Payment Terms 4) Invoice Submittal Information 5) Invoice Requirements 6) Accounts Payable and Global Procurement Contact Information 7) Debit Memo and DMDO Chargebacks 8) Payment Definitions 9) Common Invoicing Issues

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1) PROCURE TO PAY CYCLE

The Procure-to-Pay (P2P) cycle encompasses all processes from the identification of suppliers through payment of invoices. Our goal is to optimize Procure-to-Pay processes to increase efficiency, reduce risk, and lower supply chain costs. This Supplier Payment Guide was created by Amways Enterprise Processing Center (EPC) to outline specific payment process requirements and expectations for suppliers in an effort to minimize delays caused by invoice discrepancies. This document is designed to assist suppliers of both direct materials and indirect materials and services understand Amways payment requirements. Certain portions of this document may not apply to indirect suppliers. Those sections should be apparent. Should you have questions about the applicability of a specific requirement, please contact the EPC using the contact information provided in Section 6 below. Understanding and following the requirements in this guide will help ensure accurate and timely payments. EPC is focused on continually improving the payment process in an effort to consistently pay suppliers within agreed upon payment terms and to increase productivity in both organizations. Only in partnership with our suppliers we will accomplish these goals. For more information on Amways Requirements and expectations, please visit the Amway Supplier Portal at http://www.supplier.amway.com or call us at 1-616-787-4913. Page 2 of 8 Amway Payment Guide Revision 04-04-2011

All suppliers should be registered in our Address Book. All documentation to be included in the Address Book along with this guide is posted in the Supplier Portal. Any change to the Address Book information must be communicated to the Address Book team accordingly. (address.book@amway.com)

2) PAYMENT PROCESS OVERVIEW

The payment process begins with the receipt of an invoice, sent by the Supplier to ap.invoices@amway.com (Amway does not accept paper invoices) following receipt; the EPC Accounts Payable Department indexes the invoice into the Viewstar imaging system. A comparison of the invoice information is made with the Purchase Order information found in the ERP System (JD Edwards). In order to proceed, the invoice must accurately reflect the line, description, price and quantity. Additionally, in the case of merchandise, the supplied item must pass any applicable quality inspections. If a discrepancy is found on the invoice, a Problem Notice is created and sent to the appropriate Amway department for resolution. Invoices with no issues will be submitted for payment according to payment terms.

3) PAYMENT TERMS
Amways standard payment term is 2% 10, net 30. The standard non-discount term is net 30 days. Exceptions will be made on a case by case basis. Should Amway grant an exception, suppliers granted Payment terms less than Net 30 must accept payment via Automated Clearing House (ACH) or an equivalent electronic payment method? This will help insure accurate and timely payments. Amway issues paper checks only twice a month. Amways payment timetable starts on Invoice Date and ends when payment is due according to agreed upon payment terms. Amway is not responsible for the Drop Cycle of the suppliers bank.

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Invoice Date: The date the invoice is created and sent by the supplier. The invoice date should not be sent until the ordered item has been shipped or the service has been provided. Due Date: The date the invoice is due to be paid; calculated using the invoice date and the purchase order payment term. Payment Date: The date the payment is issued.

4) INVOICE SUBMITTAL INFORMATION

Paper invoices must be converted into an electronic file and emailed to ap.invoices@amway.com. The invoices must be submitted once, do not submit another copy until an AP representative ask for it.

5) INVOICE REQUIREMENTS
Compliance with the invoice requirements below will assist the EPC in providing consistent, timely payments to suppliers. Please review these instructions with all personnel involved with invoicing and update your billing system as needed. General Amway Invoice Policies: Failure to provide accurate invoices, as specified below, may delay payment. All Suppliers must be registered in the Amway Address Book prior to submitting an invoice (see the last paragraph in Section 1 above). All US suppliers must have an IRS W9 form on file before payment can be made. A W9 form may be found on the Supplier Portal: http://www.supplier.amway.com. All Foreign suppliers must have a Supplier Banking Details form on file and a Withholding Tax form attached to the invoice when submitted. These Documents may be found on the http://www.supplier.amway.com The purchase order is the official legal agreement. Upon receipt of a PO, the supplier should review the PO for accuracy. If the PO is inaccurate, (IE: payment terms, price), please notify procurement.us@amway.com to resolve the issue. Page 4 of 8 Amway Payment Guide Revision 04-04-2011

Always ask for a Purchase Order. If your Amway contact does not provide a PO, the Amway Contact must be indicated on the Invoice in order for the invoice to be expediently approved and paid. Purchase Orders numbers must be included on the invoice, Amway POs are a combination of a 6 digit number and a suffix of 2 letters ( i.e 563333OI ), the PO types are OP, OU, OC, MQ, MV,OI, OS. The payment due date is calculated using the invoice date and the purchase order or Address Book payment term. Amway will issue payment on the due date. All invoices must be submitted to this email address. ap.invoices@amway.com
If the invoice contains VAT, GST or C-Tax, an additional set of original documents are required. These documents must be posted for the attention of Clyde Boyd at the following address: Alticor Inc Tax Department Fulton Street East Ada, MI 49355 USA

Each invoice must contain the following information: Supplier REMIT TO name and address including country Supplier Contact Name, Telephone Number, and Email Address Supplier invoice number o The invoice may be returned to the supplier if the invoice # is not provided. Invoice date assigned by supplier. Amway contact for NON PO invoices. Purchase Order Number and Order Type o Only ONE Purchase Order per Invoice should be billed o The invoice will be returned to the supplier if the PO Number and Order type is not provided. If the Purchase Order Number was not provided, please include aa Amway contact name. Unit price as indicated on the purchase order Net amount and Currency. Billing unit of measure (UM) according to Purchase Order Line item according to Purchase Order Invoice Payment Term o If no payment terms are provided, the payment will default to 30 days from the invoice date. Bill of Lading or Packing Slip Number o This should be the same number that is referenced on the shipping documents. The Receiving area will input this number when the shipment is received and the Accounts Payable group will use it to match to the correct receipt. Shipping Date Page 5 of 8 Amway Payment Guide Revision 04-04-2011

Quantity shipped Description o Product Name, service description or Trade Name o Part Number / SKU o SKU Description Net amount (unit price X quantity shipped) Country of Origin o The country where the product was manufactured or produced - reference 19CFR (Code of Federal Regulations) Freight term(when applicable) Tax (if applicable) Allowances (if applicable) Total Amount Due

The following information is not required, but is helpful in accurately matching receipts to an invoice. Freight Carrier PRO Number Trailer Number AP will NOT pay from STATEMENTS, QUOTES NOR PROFORMA INVOICES.

6) ACCOUNTS PAYABLE AND GLOBAL PROCUREMENT CONTACT INFORMATION

The latest Supplier Payment Guide and Procure to Pay Contacts may be found in the Supplier Portal. Type of Request Email Phone For Payment status Ap.inquiry.us@amway.com 1-616-787-4913 or AP Issues AP Urgent or Critical Request For Purchase Order issues Catalina.aguilar@amway.com Procurement.us@amway.com 1-616-787-6600 Extension 6765

7) DEBIT MEMO AND DEFECTIVE MATERIAL DISPOSITION ORDER (DMDO) CHARGEBACKS

The back of the purchase order contains information on product inspection and audit. A copy of the chargeback will be included with the payment where the deduction is taken. If a defect is Page 6 of 8 Amway Payment Guide Revision 04-04-2011

found to be the responsibility of the supplier, the rejection may also be subject to a processing fee. Reimbursement of the funds will be expected for any outstanding debit balances that remain on the account. If goods are rejected upon receipt and returned to the supplier for rework at a non-ABG location, the supplier will credit ABG for the returned goods and issue an invoice for the quantity shipped back to ABG.

8) PAYMENT DEFINITIONS
Amway uses the following mechanisms and processes to improve payment consistency. For more information on the programs described below, please contact your Amway Purchasing Contact. Automated Clearing House (ACH): A payment process which allows Accounts Payable to electronically send payments to a US suppliers bank account. ACH increases the efficiency of the payment process, while decreasing the time for a supplier to receive payment. Please contact address.book@amway.com representative to begin the process. EDI Invoice (810 transactions): An electronic invoice received via EDI. EDI invoices significantly reduce the time to pay an invoice in Accounts Payable and are the preferred method of invoice submittal. Evaluated Receipt Settlement (ERS): A business process that eliminates the supplier invoice. Payment is based on the purchase order price and the actual receipt quantity. Accounts Payable will invite select suppliers to participate in the ERS program based on the overall invoice volume, the supplier relationship, and the type of product being ordered. Wire Transfer: Wire transfers are Amways standard method of payment for International suppliers. All Suppliers located outside of the US will be paid via wire transfer. Suppliers are required to provide banking instructions by filling out the Wire Transfer Form, located on the Supplier Portal, under Accounts Payable, Business Requirements. Information accuracy is critical to ensure payment to the correct bank.

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9) COMMON INVOICING ISSUES

Invoice quantity does not match the received quantity. When an invoice is received, the Accounts Payable department compares the quantity from the invoice with the quantity of the item received. Failure to invoice the correct quantity will cause a problem notice and a delay in payment. The invoice price must match the purchase order price in order for Accounts Payable to accurately match the invoice. Failure to provide an accurate price will cause a problem notice and a delay in payment. The purchase order number and the 2-digit purchase order type (e.g.: OP, OU, MQ, OI, etc), as found on the Purchase Order, are required for payment. Failure to provide this information on the invoice will delay payment and may force Amway to return the invoice to the supplier. NON Purchase Orders invoices must include an Amway Contact. Failure to provide an Amway contact on the invoice may force Amway to return the invoice to the supplier. The purchase order line number is used to help accurately match the PO and the invoice. When submitting an invoice, each line number must match the PO line number exactly. Failure to provide the line number will delay payment. All invoices must contain a valid invoice number and invoice date. The payment due date will be calculated using the invoice date. The invoice unit of measure must match the purchase order unit of measure. Invoicing in a unit of measure that differs from the PO may result in a problem notice and a delay in payment. The US Internal Revenue Service (IRS) requires Amway to keep a current W9 form on file for all suppliers. Suppliers without a W9 form on file must complete a form before payment can be made. A copy of the W9 form is available in the Accounts Payable section of the ABG Supplier Portal: http://www.supplier.amway.com Additional authorized charges, such as freight or tax should be identified on the invoice. Charges not on the Purchase Order may require additional approval and may result in a problem notice.

Invoice price does not match the purchase order price.

The invoice is missing the purchase order number and/or the purchase order type. The invoice does not have Amway Contact Information The invoice is missing the purchase order line number or the line number is inaccurate. The invoice number and/or invoice date is missing. The unit of measure on the invoice does not match the unit of measure on the purchase order. A W9 form is not on file at ABG.

There are additional line items on the invoice that were not on the Purchase Order.

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