Regulations for the Establishment and Administration of the Multi-level Marketing Enterprises and Participants Protection Institute Article 31

A successful mediation is accomplished when all parties concerned have reached an agreement. If the MLM enterprise is liable for compensation, or should pay a certain amount according to the investigation results, as made by the mediation committee, and fails to fulfill the payment obligation by the end of the contract, the EPPI shall order the said enterprise to pay within 30 days. The EPPI shall make an advance payment on behalf of the enterprise, if the payment is overdue.The amount of an advance payment made by the EPPI, as referred to in the preceding paragraph, shall be determined by the Mediators（Mediation Committee）, based on such factors as the circumstances of the case, the imputability of the MLM business and the extent of damage suffered by the distributor, and the income of the EPPI and the risk to the EPPI for advancing such a payment. However, the board of directors should approve the advance payment for major cases.After the EPPI makes an advance payment, the participant shall assign its rights of claim to the EPPI. The EPPI assumes the rights of claim of the participant starting from the date of the claims assignment, and then seeks recovery from the said enterprise.After deducting the amount of the advanced payment, litigation costs and attorney's fees, the remaining amount recovered by the EPPI, as referred to in the preceding paragraph, shall be delivered to the participant, who signed over the rights of claim.No application may be filed for mediation of the same dispute that has already settled.