ALL ABOUT RUSSIA

TABLE OF CONTENTS

I. PREPARATION OF YOUR STAY .................................. - 3 -

II. „RUSSIA ABC“(FACTS CONCERNING RUSSIA) ......... - 10 -

III. THE MOST IMPORTANT TERMS IN RUSSIAN .............. - 16 -

IV. PRELAUNCH-PHASE (16.04. – 25.05.2011) ........... - 23 -

V. LR IN RUSSIA FROM THE 01ST OF JUNE 2011......... - 30 -

 ALL ABOUT RUSSIA

I. PREPARATION OF YOUR STAY

1. VISA
The visa application can either be done personally, via a travel agency or via a courier
service provider (This service is offered by a number of courier service providers, just
search one close to you via Google).

1.1 Following documents need to be submitted:

a. Original-passport (no passport copies) or child’s identity cards. The passport

has to be valid for at least 6 months beyond the end of the journey (for German
citizens only 3 months). The passport needs to have at least 2 free pages to
make the entry of the visa possible.
b. Visa application filled out in block letters or with a typewriter and personally
signed. All questions in the visa application need to be answered correctly and
completely.
c. Passport photograph stuck to the visa application, format 3,5 x 4,5 cm. Photos
in profile, with a hat as well as photos that show the applicant with sunglasses
etc. won’t be accepted.
d. Travel health insurance certificate of an insurance company, which as been
approved in Russia as well as an insurance card form filled out in block letters or
with a typewriter. Data/ information in the insurance card form should match the
data/ information in the visa application.
e. Invitation / Travel confirmation.

Incomplete documents and visa applications that are not filled out completely
won’t be accepted

Tips:
For children travelling along that are registered in the passport of the parents – a
respective annotation in the visa application and also in the invitation of the parent in
whose visa the child will be registered.
Attention: The photograph of the child that is registered in the passport of the parent
should be stuck to this passport.

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1.2 TYPES OF VISAS:

For the visa application for business trips a formal invitation issued by the Russian
foreign ministry, its respective regional representation or the authorities of the
Russian interior ministry is necessary.

According to the agreement between the EU and the Russian Federation on the
facilitation of issuance of visas as from 01.06.2007 business visas for nationals of EU
countries (except Ireland and the UK) is also based upon a written request from the
host legal person, the host Company or the host organization, or an office or their
agencies, or state or local authorities of the Russian Federation or organizing
committees of trade and industrial exhibitions, conferences and symposia that take
place in Russia granted. Such a request must be submitted in original form or in a
well-read copy and containing information according to Article 4, paragraph 2 of the
Agreement by the applicant.

Apply for other categories of citizens of EU countries, the visa on the easier routes
can be presented as well as documents mentioned in Articles 4 and 5 of the
Agreement.

The following kinds of visas exist for business trips (among them also visas
for cultural and scientific activities:

For one entry (max. duration of stay 90 days);

For two entries (max. duration of stay overall 90 days);
For several entries (Validity of up to 5 years with a planned stay of max. 90 days per
period of 180 days).

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1.3 VISA FEES

The payment occurs at the cash register of the general consulate via
EC/VISA/MasterCard (see payment conditions). It is kindly requested not to pay via
bank transfer.

a. Visa fees and application processing time for citizens of the European Union
(except the UK, Ireland and Denmark)

b. For the processing of the visa applications a fee of 35 EUR is charged.

c. The contracting parties charge a handling fee of 70 EUR, if the visa application
and the necessary documents are only handed in 3 days or less before the planned
departure. Exceptions are the cases mentioned in article 6 paragraph 3 letter b, e
and f as well as article 7 paragraph 3.

d. The following categories of persons are freed from the application processing fee:

Close relatives – marriage partner, children (also adopted children),

parents (also guardians), grandparents and grandchildren – of citizens
of the European Union that are legally resident on the territory of the
Russian Federation.

Members of official delegations that take part in meetings, negotiations
or exchange programs as well as events of governmental organisations
located within the territory of the Russian Federation resp. a member
state with an official invitation addressed to a member state, the
European Union resp. the Russian Federation;

Members of national and regional governments and parliaments, of
constitutional courts and supreme courts, as far as they are not freed of
the visa fees by this agreement anyway;

Pupils, students, postgraduates and teaching staff travelling along that
would like to enter the country for studying and education purposes;

Disabled persons and where necessary their accompanying person;

Persons, who have to travel because of humanitarian reasons e.g.
urgent medical help as well as their accompanying persons and
persons that travel to the funeral of a close relative or want to visit a
seriously ill close relative, if they provide respective proof;

Participants of international juvenile sport events and their
accompanying persons;

Participants of scientific, cultural and artistic activities including
university and exchange programs;

Participants of official exchange programs of partner cities.

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1.4 APPLICATION PROCESSING TIME:

a. The diplomatic missions and consular representations of the member states and
the Russian Federation decide within 10 calendar days after receiving the
application and the necessary documents on the Visa application

b. The time limit for the decision on an application can in special cases be extended
to up to 30 calendar days, especially if a further examination is necessary.

c. The time limit fort he decision on an application can in urgent cases be reduced to
3 working days or less.

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2. FLIGHT
Book your flight in advance as soon as possible.

We recommend Domodedovo (russ.: Домодедово) as your destination airport in

Moscow. The airport lies 45 km south of the city center and is well connected to the
public transportation network in Moscow.
If possible you should choose an arrival time in the late evening or at night, because
the transfer from the airport to the inner city can be extremely time consuming, due to
severe traffic density.

Connection to Moscow

• The fastest connection is the Aeroexpress-train, which drives in a 30/60-

minute-rhythm without intermediate station to the Pawelez station (russ.:
Павелецкая) and three times a day also to the Kursk station (russ.: Курская)
as well as to the station Kalantschowskaja (russ.: Каланчевская). The travel
time is around 40 minutes, a single ticket costs 300 Rubel. It is possible to
purchase an Onlineticket with a 10% discount as well as a „Metro+“-Ticket,
which is also valid for a ride on the Metro. At the Pawelez station (russ.:
Павелецкая) you can also check in for flights of S7 and Transaero (only
journeys within Russia or states of the former Soviet Republic).
• The normal regional train however only costs 84 Rubel, the journey takes
approx. 80 minutes, though.
• Busses and Sharetaxis drive from the Metrostation Domodedowskaja (russ.:
Домодедовcкая) to the airport.
• It is recommended to take taxis only at the official taxi ranks. The price is a
matter of negotiation and should be set in advance. Some taxi drivers demand
a payment in US-Dollar. We recommend the taxi company “Taxi Blues”.
(Telephone: +7(495) 925-5115)
• Rental cars can already be booked from Germany from the airport
Domodedovo on. All known providers that are familiar to you from Germany
are represented there.

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 ALL ABOUT RUSSIA

3. UNTERKUNFT
We recommend the hotels stated below for your stay in Moscow.

All hotels can be booked via HRS (Hotel Reservation Service) from your home
country. On www.hrs.com you can also find details concerning the price and facilities
of the respective.

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 ALL ABOUT RUSSIA

Ibis Moscow Paveletskaya*** (No 14)

Shchipok Str 22 Bld. 1, 115054 Moscow

Akademicheskaya*** (No 58)

Donskaya Ul., 1, 117049 Moscow

Heliopark Empire*** (No81)

Brestskaya 1st Str. 60/1, b1, 125047 Moscow

Katerina City**** (No 65)

Shluzovaya naberezhnaya. 6/4, 115114 Moscow

LikeHome Serviced Apartments**** (No 69)

Novy Arbat, 115184 Moscow

Moscow Radisson Slavyanskaya Hotel and Business Centre**** (No80)

Proletarskij Pr-Kt 2, 115522 Moscow

Holiday Inn**** (No 51)

Ul. Sushchevskij Val 74, 129272 Moscow

Hilton Leningradski**** (No72)

Ul. Kalanchevskaya 21, 107078 Moscow

Golden Ring***** (No1)

5 Smolenskaya street, 119121 Moscow

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 ALL ABOUT RUSSIA

II. „RUSSIA ABC“(FACTS CONCERNING RUSSIA)

F as Foreign country travel health insurance

National health insurance does not offer insurance coverage in Russia. You should
therefore absolutely arrange a foreign country health insurance in advance of your
journey. These are offered by automobile associations, travel businesses and private
insurance companies for reasonable price. Advisable is to effect a yearly insurance
policy, which costs between €10 and €15 depending on the person and offers
insurance coverage throughout the year, also including short trips.
But attention: Don’t let yourself be obtruded with a foreign trip package. This
insurance form contains in addition to the health insurance often also foreign country
indemnity-, accident- and luggage insurance. Your indemnity insurance as well as your
accident insurance usually covers the whole of Europe, it is often even valid
worldwide. Ihre Haftpflichtversicherung gilt für ganz Europa, häufig auch weltweit (just
look into your insurance conditions).

P as Population
The Russian Federation has a population of around 142,2 Million of which 75% live in
the European part of Russia, although 75% of the land area are located on the Asian
continent.
More than 100 ethnic groups live in Russia, the majority is however of Russian origin
(around 81%). The remaining 19% of the population belong to minorities with often
only a couple of thousand people. The biggest minority group are the Tatars (around
4%) with rising tendency, followed by the Ukrainians (around 3%).

D as Direct Marketing in Russia

Russia is under the Top 10 countries worldwide regarding the turnover in Direct
Marketing. Both the Health and the Beauty segment belong to the growing markets in
Russia. The two cosmetic companies with the currently highest turnover are
companies in Direct Marketing.

E as Email
Email-addresses are (just like in Germany) written in Latin letters.

F as Flight
Detailed information concerning this topic are available under „Preparation of your
stay“.

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 ALL ABOUT RUSSIA

S as Size
Russia is with a size of 17.075.400 km² the largest state of the world. The area covers
around 1/8 of the world’s surface. The north-south expansion amounts to over 2.000
km and the east-west-expansion 9.000 km.
The largest country of the world does not only lie on two continents, but is also in
terms of surface area almost as big as two continents (Asia and Europe). The
expansion of the country offers enough space for the biggest river (Wolga), the oldest
and deepest lake of the world (Baikallake), the biggest freshwater deposit (Ladoga-
and Baikallake), and the worldwide longest railway track (Moscow-Wladiwostok) and
nearly all climate- and time zones.

V as Vaccination
There are no vaccinations officially required. It is recommended to check the following
common protective vaccinations:
Tetanus, Diphtheria, Polio as well as Hepatitis A.
Just like in any other forested areas tick bites can occur during the summer months.
Your doctor can inform you about preventive treatments.

I as Internet
Internet is in Russia area-covering available even in the province, but still not as
generally as in Central Europe. Outside of the mega cities, the majority of the
Russians is still using modems and time rates to enter the web. DSL or flat rates are
no standard there. This does not apply for Moscow or St. Petersburg, where such
accesses are just as self-evident as in our part of the world. Internet cafés are only
known in the big cities and only in Moscow and St. Petersburg as widespread as in
western city centers. The standard is here the use of an English-Cyrillic hybrid
keyboard, with which one can easily write in both languages. Also already available in
Russia are UMTS-sticks for mobile surfing or also only the resp. SIM-cards for the own
stick or the smart-phone. An UMTS-access is outside of the big cities rather seldom
and the speed via GPRS or EDGE is rather low.

C as Credit card
In the large Russian cities like Moscow and St. Petersburg many banks provide cash
on the most common credit cards (American Express, Diners Club, Eurocard and
Visa). Meanwhile there are partly also cash machines available for you. In international
hotels and restaurants you can usually pay with your credit card without any problems.
Euros checks are in general not accepted as a payment method in Russia.

Travel checks can only be cashed in at specific banks and hotels in bigger cities (A
relatively high Exchange fee is charged).

In order to avoid possible problems, you should take sufficient cash with you, US-
Dollars and Euros can be changed almost everywhere in exchange offices with a valid
passport into Rubel (Coins are not accepted in exchange offices).

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 ALL ABOUT RUSSIA

C as climate
Russia stretches over all climate zones except the tropics. The greater part of the
country is located in the temperate region. The southern part of the Far East has
monsoon climate. The average annual temperature is except of the black sea coast
below the freezing point. In East Siberia it can even fall below -35 to -50 °C. The
weather in winter is cold and dry. The summer temperatures are very diverse. Moscow
is located within the temperate climate zone with continental climate. The average
annual temperature is 5,4 degrees Celsius, the yearly precipitation is around 705
Millimetres. Most precipitation occurs in July (90 Millimetres), the least in March (30
Millimetres). In winter the temperature is mostly between -4 and -10 degrees Celsius,
but sometimes also temperatures below -20 degrees are measured. But often also
thaw occurs. The winds are moderate, the air is dry. Stronger frosts are therefore
relatively easy to cope with. In summer the average temperature lies between 17 and
19 degree.

R as Rental car
You can already book a rental car from Germany starting from the airport Moscow.
The big German companies are all represented. Payment via credit card in advance at
the completion of the reservation (our Recommendation: Use public transportation
and taxis)

M as Moscow
Moscow (russ. Москва) is the capital of the Russian Federation and with around 10,6
Million citizens in the city and 14,6 Million in the agglomeration the biggest city and
agglomeration Europe’s. It is the political, economical and cultural center of the country
with universities and colleges as well as numerous churches, theatres, museums,
galleries and the 540 meter high Ostankino-Tower. Moscow is the residence of the
Russian-Orthodox church. The patriarch resides in the Danilow-monastery, the biggest
Russian-Orthodox church is the Christ-Saviour-Cathedral in Moscow. Within the city
region of Moscow there are over 600 churches. Since the 16th century Moscow is
called the third Rome. Moscow received the distinction “Hero city” after the end of the
Second World War. The Kremlin and the Red Square in the center of Moscow are on
the World Cultural Heritage UNESCO-list. With eight main-line stations, three
international airports and three inland ports the city is the most important traffic and
transportation hub as well as the largest industrial city Russia’s.

E as Emergency numbers in Russia

Fire brigade 01
Police 02
Ambulance 03

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 ALL ABOUT RUSSIA

I as Income per head

After the deep drop during the 1990’s, Russia has returned to the growth track since
1999. The country was able to reach between 19999 and 2007 average annual growth
rates of almost 7% of the GDP. The constantly high growth rates have lead to a
quadruplication of the per-head-income since 2003 to meanwhile 15.000 US-Dollars.

R as Religion
The most common religion in Russia is the Christianity – especially the Russian
orthodox believe – as well as the Islam. There are also representatives of other
confessions as Judaism, Buddhism as well as traditional religious orientations among
some ethnic groups. At least one third of the population describes itself as atheists or
without a confession.

L as Language
The Russian language (in Russian: русский язык), is the slavish language with the
most speakers and is considered a global language. Knowledge of the English
language is quite common in the major cities as Moscow or St. Petersburg, in smaller
cities or in the country it is rather seldom. In the middle Asian republics you should
generally expect, that that the English language is spoken rather seldom. In Russia
people write in Cyrillic letters. If you don’t have any knowledge of the Russian
language, it is recommended to at least learn/ or take along the Cyrillic alphabet.
Otherwise already driving with the Metro could very well turn out to be an adventure.

T as Telephone
At a public telephone, called Taxofon (russ.: Таксофон), you pay with chips or
telephone cards that are sold at kiosks, post offices and Metro-stations. But beware,
sometimes only specific telephone cards are accepted. Some telephone booths in
hotels or airports also accept credit cards. The old telephone booths only provide the
possibility for local calls. It is also possible to make an international call from a
telephone office. International calls are cheaper between 10pm and 8am and on the
weekends. Not only the major cities but also most of the regions in Russia have a well
functioning mobile phone according to European GSM-standard. In case you would
like to use your mobile phone in Russia, you should inform yourself about the
international roaming fees at your mobile phone operator. The price depends on the
conditions, which the specific provider has agreed with its Russian partners, and can
vary between the different regions. It might also be advisable to ask your personal
mobile phone provider, if the phone can be used in a foreign country and if it is
necessary to unlock it.
Tip: Get a Russian prepaid card fort he duration of your stay. They are available at
many kiosks, in super markets, banks or in shops of the mobile phone providers. You
then need to make sure that no SIM-Lock is activated.
Since April 2001 it is forbidden to use your phone while driving a car without a hands
free equipment in Russia.
The country code for Russia is: 007 resp. +7

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A as Accommodation
Detailed information concerning this topic are available under „Preparation of your
stay“.

V as Visa
Detailed information concerning this topic are available under „Preparation of your
stay“.

C as currency
The Russian currency is the Russian Rubel (Рубль; Kürzel RUB) at 100 Kopeken
(Копейка). One Euro currently equates to around 42,75 Rubel. The exchange rate is
subjected to daily ups and downs.
After strong inflation during the 1990’s a currency reform was carried out in 1998, in
whose course 1.000 old Rubel (RUR) were replaced by 1 new Rubel (RUB), since
then the Rubel was in comparison with the US-Dollar and the Euro for the most part
rather stable. In the course of the international financial crisis the Rubel lost since the
second half year 2008 around 20 percent of its value in comparison to the Euro.

W as Water
For safety reasons you should drink tap water only after boiling it. Pharmacies also sell
Micropure®-tablettes with which you can disinfect tab water.

T as Time
The time zones in Russia are between UTC+2 and UTC+11, divided into nine time
zones. The change to summer time in the Russian time zones takes place at the same
time as in Europe; at the last Sunday in March at 2am the clock is set one hour
forward, at the last Sunday in October at 3am one hour back again.
For Moscow the following applies
Standard difference UTC: +3:00 hours
Difference MEZ: +2:00 hours
In the Russian railway traffic generally the Moscow time applies.

Differenz MEZ: +2:00 Stunden

Im russischen Eisenbahnverkehr gilt für das ganze Land generell die Moskauer Zeit.

P as Plug adapter
The voltage in Russia is 220 Volt. The Russian electric sockets look quite similar to the
Middle European ones. The Middle European flat connectors should fit in them without
any problems. In case you only have such flat connectors on your devices, you don’t
have to worry about adapters. There could be problems with safety connectors
because they are sometimes too big. Usually the customary travel connector sets can
help here because several of the included adapters fit into the Russian sockets
(sometimes called Southern Europe or long distance journey).

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 ALL ABOUT RUSSIA

Our recommended travel guide for Moscow:

Author: Johenning, Heike Maria

ISBN: 978-3-8317-1882-5
Number of pages: 348
Edition: 2nd, completely revised and updated edition
Year: 2010
Price: 14,90 €

Facilities: full colour, 16 detailed maps and diagrams, folding map

as a map to take out, detailed index, grip marks, Russian language
help, durable PUR binding
Size (H x W x D): 18x12

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III.THE MOST IMPORTANT TERMS IN RUSSIAN

English Russian (written)

Russian (spoken)

Привет!
Hello! Privet!

Good morning/ Добрый день!

afternoon! Dobriy den!

Пока!
Bye! Poka!

До свидания!
Good bye! Do svidaniya!

да
Yes da

нет
No net

Спасибо!
Thank you! Spasibo!

Пожалуйста!
Your welcome! Poyaluysta!

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на здоровье!
Cheers! na sdorovje!

Извините,...
Sorry Isvinite,...

Help На помощь!
Na pomoschj!

Toilette Туалет
Tualet

My name is ... Меня зовут ...

Menya sovut ...

I’d like to have ... Я хотел бы ...

Ya hotel bi ...

How much is ...? Сколько стоит ...?

Skolko stoit ...?

The bill please! счет, пожалуйста!

stshet, poyaluysta!

I don’t speak Russian. Я не говорю по-русски.

Ya ne govoryu po-russki.

Entrance Вход
Vhod

Exit Выход
Vihod
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One один
odin

Two два
dva

Three три
tri

Four четыре
tshetire

Five пять
pyat

Six шесть
shest

Seven семь
sem

Eight восемь
vosem

Nine девять
devyat

Ten десять
desyat

Monday понедельник (ПО)

ponedelnik (PO)

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Tuesday вторник (ВТ)

vtornik (VT)

Wednesday среда (СР)

sreda (SR)

Thursday четверг (ЧТ)

tshetverg (TshT)

Friday пятница (ПТ)

pyatnitsa (PT)

Saturday суббота (СБ)

subbota (SB)

Sunday воскресенье (ВС)

voskresenje (VS)

LR программа
Fast starter program "Быстрый старт"
LR programma "Bistrij
start"

PV Баллы
Balli

BV Бонусная основа (БО)

Bonusnaja osnowa (BO)

Total turnover Общий оборот

Obschij oborot

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Group turnover Групповой оборот

Gruppowoj oborot

Personal turnover Личный оборот

Litshnij oborot

Side volume Остаточный оборот

Ostatotshnij oborot

Bonus capable line Бонусная линия

Bonusnaja linija

Special bonus Специальный бонус

Osobij bonus

Разница бонусных
Difference bonus процентов
Rasniza bonusnih
prozentov

Margin Торговая наценка

Torgowaja nazenka

Leader bonus Лидерский бонус

Liderskij bonus

Junior Manager Младший менеджер

Mladschij menedsher

Manager Менеджер
Menedsher

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Junior Teamleader Младший лидер группы

Mladschij lider gruppi

Teamleader Лидер группы

Lider gruppi

Orgaleader Лидер организации

Lider organisazii

Бронзовый лидер
Bronze-Orgaleader организации
Bronsowij lider
organisazii

Серебряный лидер
Silber-Orgaleader организации
Serebrjanij lider
organisazii

Золотой лидер
Gold-Orgaleader организации
Zolotoj lider organisazii

Платиновый лидер
Platin-Orgaleader организации
Platinowij lider
organisazii

Vice President Вице-президент

Vize-president

President Президент
President

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Президент звездного
Star president уровня
President zwösdnovo
urownja

Annual bonus Годовой бонус

Godowoj bonus

Top-Depth bonus Топ–глубинный бонус

Top-glubinnij bonus

Depth bonus Глубинный бонус

Glubinnij bonus

President bonus Бонус Президента

Bonus presidenta

Silver bonus Серебряный бонус

Serebrjanij bonus

Toп - Серебряный
Top-Silverbonus бонус
Top-serebrjanij bonus

Platin bonus Платиновый бонус

Platinowij bonus

Toп – Платиновый
Top-Platin bonus бонус
Top-platinowij bonus

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IV. PRELAUNCH-PHASE (16.04. – 25.05.2011)

What does Prelaunch-Phase mean?

During the Prelaunch-Phase LR partners from the existing markets can already pre-
register prospects / future partners in Russia. LR provides a Prelaunch-Platform for
this purpose on www.lr-goes-russia.com. Every LR partner can here reserve his
own subdomain (e.g.www.mueller.lr-goes-russia.com) and by this means pre-
register contacts in Russia himself.

When exactly does the Prelaunch-Phase start?

The Prelaunch-Phase begins on the 16th of April at 01:00 o’clock p.m.

How does the registration of the subdomains work? What do I have to do?

As an existing LR partner you can register on www.lr-goes-russia.com by stating

your surname, first name, partner number, country and email address and choose
the subdomain of your choice.

Also as a Russian prospect you have the possibility to reserve your own subdomain,
if you´ve been preregistered by an existing partner previously. You can find a
description of how that will work in the user’s manual, which we will provide before
the start of the Prelaunch in the LR worldwide area.

How long does it take until I get my subdomain?

The activation of your subdomain can take 2-3 working days, due to the fact that we
will undertake an internal data matching, in order to ensure that all new Russian
partners can be allocated correctly after the Prelaunch.

How do I use my Subdomain properly?

Use your subdomain only to register prospects and not for promotion.

We strongly advise you against publishing your personal data (mobile phone
number, email-address aso) at social networks like facebook or Xing to make your
subdomain known.

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Do my contacts incur any liabilities by registering on the Prelaunch-Website?

No, by simply registering your Russian contacts do not incur any liabilities.

What do my contacts have to consider, when they want to register on my

subdomain?

Only prospects from Russia, who have a valid email address, are able to register.
Every email address can only be used once within the Prelaunch-Software. It is
therefore not possible to register twice with the same email address.
All mandatory fields need to be filled out in Cyrillic writing, because otherwise the
shipment of the Starterkits cannot be carried out.

Can I see my pre-registered partners within my Orgaleaderprogram?

No, the pre-registered partners are only saved within the Prelaunch-Software. You
therefore won’t be able to see them in your Orgaleaderprogram.

What kind of advantage or benefit do pre-registered partners have?

All Pre-registered can buy their starterkit for a special price of 1.399 RUB,
furthermore we will offer a fixed rate delivery fee of 300 RUB to all new entries
during the Prelaunch-Phase. This rate applies only for the delivery of the starterkit,
additional orders to follow the logic of the regular shipping costs.

Until when can I enter partners on my Prelaunch-Website?

It is possible to pre-register prospective partners until the 25th of May2011.

What happens to the data afterwards?

The data will initially only be cached (temporarily saved) in the LR ERP-system. If the
starterkit will be ordered within the Activation-Phase from the 1st of June until the 30th
of June 2011, the data will be saved in our system permanently. Otherwise the data
will be deleted at the 1st of July 2011.

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What happens after the migration of the partner data on the 1st of June 2011
and how can the pre-registered contacts now become a LR partner?

On the 1st of June.2011 all pre-registered contacts will receive a welcome letter via
email with a partner application form as a pdf-file. The partner application form is
already filled with all necessary information (name, partner number, sponsor number,
sponsor name etc.) If applicable you’ll only have to enter your bank information
yourself. The sent application is the so called “customer application”. The further
classification depends on the fact whether the partner decides for business
registration and if so, for which.

Your pre-registered contacts only have to tick, which starterkit they would like to buy
and sign the partner application form.

In order to make faster processes during the partner entry possible, the partner
application is highly standardised. You’ll only have to choose between Starbox and
Aloe Vera Box.

LR offers an attractive fixed rate delivery fee of 300 RUB for pre-registered contacts
to all cities in Russia. Hence the total costs are very easy to calculate.

How can I submit my partner application to LR Russia?

There are two possibilities:

1. Via the LR Callcenter in Moscow

- You send the filled out partner application form via fax (the signed application
must be sent to LR Russia subsequently via post in every case) or post to LR.
- You pay the entrance via bank transfer to the stated bank connection.
- On the partner application you can find a reference number, which you
necessarily have to state on the bank transfer.
- Directly after receiving the payment the shipment will be carried out
- Together with the starterkit you also receive a welcome letter with your partner
data
- Please consider that follow up orders are only possible after the receipt of the
payment
- Please also consider that orders via the callcenter, which are not paid within 3
days (Inpayment on LR bank account), will be deleted from the system

2. In the Distribution Center (DSC)

- You’ll bring the filled out partner application with you to the DSC
- In June 2011 there will be a separate counter only for new partners. You should
nevertheless plan with some waiting time

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- Hand in the partner application with your first order and pay cash or via credit
card
- Welcome letter with partner number and online access data will be handed over
directly
- You can also directly place your follow-up order, because your partnership will
be activated immediately after the payment of the starter kit

Does the sponsor have to sign the partner application form?

No, he doesn’t.

How does LR protect prospects from the prelaunch phase?

As a prospect preregistered during the prelaunch phase you can only order your
starterkit with the partner application we sent to you per email. This applies to the
activation phase from the 1st of June till the 30 th of June.

To what extent does LR maintain my Prelaunch-Website?

The software is structured very easily and is mainly intended to support partners at
expanding and registering their list of contacts. An individualization of the website is
nor possible, only your name/ company name will be shown on it.

It further offers you the possibility to easily provide your pre-registered partenrs with
information.

LR will provide you with a detailed user’s manual and also offers an Email-Support in
English or German under support-russia@lrworld.com.

Where is the first DSC located?

The DSC in Moscow is located in the same building as the Russian headquarter.
The exact address is:

LR-Health and Beauty Systems GmbH

Tulsky Plaza
Ulitsa Bolshaya Tulskaya 11
Moscow 115191

ООО <<ЛР РУС>>

Россия, 115191, г. Москва,
Улица Большая Тульская, 11
ТОЦ Тульская Плаза

Name of the metro station next zu the office: Tulskaja (Тульская); Number 9

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What are the exact Telephone numbers?

+7 (495) 6605006 (Phone)

+7 (495) 6605009 (Fax)
8-800 –700 01 01 (Hotline, free of charge for callers from the region)

From when on is it possible to reach the Headquarter via phone?

The phone will be staffed from the 18th of April 2011.

Is it possible to visit the Distribution Center in Moscow during the Prelaunch-

Phase?

The showroom in the DSC will already open its doors on the 25th of April 2011. The
opportunity therefore exists to present the “LR-World“in a professional way to
prospective partners already during the Prelaunch-Phase.

Is it then already possible to buy products there?

No, the product sale only starts on the 1st of June 2011 together with the start of the
official launch in Russia.

Are there Information-Meetings organised by LR and how can I register me

resp. my contacts for them?

Yes, there will be Infomeetings, company presentations and product trainings during
the Launch-Phase on a regular basis. The dates/ places will be published on the
Russian LR Homepage.

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Will there be an official Opening - Meeting?

Yes, on the 29th of May 2011 an official “Russia Kick-off Meeting” will take place in
Moscow. Beginning of the meeting is 12:00AM.

Where and from when on is it possible to buy tickets for the big “Kick-off
Meeting”?

The ticket sale will start on the 25th of April 2011. In the existing markets tickets will
be sold for 5EUR per piece. In the Distribution-Center in Moscow (pre-registered)
partners can buy tickets for a price of 200 RUB per piece. Every (pre-registered)
partner is only allowed to buy maximal 2 tickets. When buying tickets in the DSC
please bring in the confirmation email of your preregistration.
The process of how to get tickets outside of Russia will be provided in time.

What are the opening hours of the Distribution-Center and of the callcenter?

Call – Center: Monday to Friday 10:00AM – 6:00PM (Moscow time)

DSC: Monday to Friday 10:00AM – 6:00PM (Moscow time)
Saturday 11:00AM – 2:00PM (Moscow time)

Please note concerning waiting times:

Due to the not predictable number of prospective new partners during the Prelaunch
and thereof resulting partner applications resp. the number of new partners during
the first months, which is difficult to plan, it is definitely possible and not unlikely that
longer waiting times in the call center and also in the DSC of the new subsidiary in
Russia will occur. The processing of partner applications can therefore also be
delayed in the starting phase.

Is it also possible to pre-register / sponsor contacts from the surrounding

countries like e.g. Kazakhstan or Belarus?

During the Prelaunch a registration of contacts outside of Russia is not possible. The
delivery to those countries is still in the planning phase. We will inform you in a timely
manner about eventual changes.

Handling of partners from CIS Countries from 01.06.2011

All potential partners from CIS can sign an agreement with LR RUS Llc.
Goods can be picked up from the DSC in Moscow. The parcels can also be mailed to
'do vostrebovaniye' the last postal point on the Russian border with the CIS
countries.

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The first countries to be delivered across the border directly to the partner will be
Kazakhstan and Belarus, we will inform you about the date in time.

All partners from CIS countries will receive bonus, but as usual in Russia minus the
witholding tax (30%)

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V. LR IN RUSSIA FROM THE 01ST OF JUNE 2011

What products will LR introduce on the 1st of June 2011?

LR will enter the Russian market with the following products:

Decorative Cosmetics (no deco suitcase),

Complete Fragrance assortment,
Aloe Vera Care,
Nano Gold,
Platinum, Colostrum,
Pro Balance
and the Aloe Vera Drinking Gels.

Supplements not be available on 01.06.2011 but to follow briefly.

How can I be sponsored in Russia after the Prelaunch-Phase?

After the Prelaunch-Phase has ended, so from the 1st of June 2011onwards, it is
possible to sponsor in Russia similar to what you are used to from other countries. All
necessary documents (partner application forms etc.) will be offered for sale and as a
download. Please note, that there will be different partner applications according to
the different types of partners in Russia. It is still possible to activate your partnership
in the DSC or via the call center. For the activation via the call center per Fax
please note, that we need your phone number and the best time to reach you, to
inform you about your reference number to transfer the invoice amount.

How does the entry from the 1st of June onwards work?

New partners from the 1st of June onwards (that haven’t pre-registered during the
Prelaunch) can enter the LR business at a price of 1.899 RUB, for what the receive
one of the following:

1. Aloe Vera Box with Aloe Vera DVD as well as a considerable print package
and a sponsor package.
2. Starbox as well as a considerable print package and a sponsor package.

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How will prospective partners be allocated, who come to a DSC without any
previous partner contact?

These prospects will be allocated to the geographically nearest leader.

How can I submit my partner application to LR Russia?

There are two possibilities:

1. Via the LR Callcenter in Moscow

- You send the filled out partner application form via fax (the signed application
must be sent to LR Russia subsequently via post in every case) or post to LR.
- LR calls you to check the order and to let you know your reference number for
the bank transfer.
- You pay the entrance via bank transfer to the stated bank connection.
- Directly after receiving the payment the shipment will be carried out.
- Together with the starterkit you also receive a welcome letter with your partner
data.
- Please consider that follow up orders are only possible after the receipt of the
payment.
- Please also consider that orders via the callcenter, which are not paid within 3
days (Inpayment on LR bank account), will be deleted from the system.

2. In the Distribution Center

- You’ll bring the filled out partner application with you to the DSC
- In June 2011 there will be a separate counter only for new partners. You should
nevertheless plan with some waiting time.
- Hand in the partner application with your first order and pay cash or via credit
card.
- Welcome letter with partner number and online access data will be handed over
directly.
- You can also directly place your follow-up order, because your partnership will
be activated immediately after the payment of the starter kit.

Does the sponsor have to sign the partner application form?

No, he doesn’t.

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Will there be a LR – Card in Russia?

At the beginning there will be no LR Card in Russia.

How can I buy products in Russia?

As a Russian partner you have two possibilities to order products.

You can either order via call center, where you have to choose between delivery and
pick-up in the DSC or you come to the DSC directly.

As a Non-Russian partner you can neither buy products nor sales support material.
The possibility of a double partnership does not exist.

In case you need sales support material in Russia, please purchase them via one of
your lines.

What payment methods do exist?

In Russia prepayment is usual, in our case that means cash or payment via credit
card in the DSC or bank transfer when an order is placed via callcenter

Please note, that it’s not possible to pay an order which is placed via callcenter with
credit card.

Please also consider that orders, which are not paid within 3 days (Inpayment on LR
bank account), will be deleted from the system

What are the shipping costs?

In Russia there will be no minimum order value. Shipping costs will be calculated
depending on the weight of the order and the distance from Moscow.
We work with the Russian Post (EMS) as service provider. The shipping costs are to
be hand over to the partners.

Examples:

For a shipment in the city region of Moscow shipping costs for an order are 300RUB

A shipment to Yekaterinburg which weighs 2,5kg the partner has to pay 600RUB

A parcel weighing 7,5kg that should be sent to Novosibirsk costs 1100RUB

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What are the delivery times in Russia?

The large geographical expansion in Russia may result in delivery times up to two
weeks. Please take this into consideration, when you place an order.

Examples:

Moscow: up to three days

Yekaterinburg: six to eight days

Irkutsk: ten to twelve days

Is there a possibility to place group orders?

To save on shipping costs, it is possible to order in groups, the products/ goods will
be sent to one address. Due to that fact, a special group order form was developed
that contains a separate order form for each partner.

The whole shipping costs for a group order have to be paid from one partner (first
one on the list)
PV and GV are to be attributed to each partner of course.

Group orders can be placed via call center or DSC. Please note that one partner has
to pay the full amount of the order.

How does the return process work?

Time for complaints is 14 days.

According to the Russian Consumer Protection Act, dietary supplements and skin
care products will not be returned.

There are three possible reasons for returns:

1) Partner wants to end his partnership within the opposition period and return the
already received products. If the return is made within the prescribed objection
period, the amount paid in advance is paid back (excluding shipping costs).

2) Partner detects a quality defect. As evidence of this deficiency, at least one photo
will be posted, in doubt the product itself must be sent back to the DSC. A new
product will be sent out (free of shipping costs).

3) Partner has received the wrong product in the DSC. In this case there will be a
direct exchange on site in the DSC.

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Which partner types do exist in Russia?

In Russia there are three different partner types:

1) Partners without entrepreneurial registration

2) Partners with Entrepreneurial Registration, but without VAT eligibility (Individual

Entrepreneurs)

3) Partners with Entrepreneurial Registration and with VAT eligibility (Entrepreneurs

or Limited Liability Company)

An activation to the 40% margin will not take place in Russia. Who becomes a
partner, will get it automatically.

How and to whom will bonus be paid out?

Bonus is only paid out via bank transfer, payout per cheque is not possible due to
legal provisions. Bonus payout is only possible for partner with business registration.

Partner without entrepreneurial registration get their personal bonus as a

voucher which is accounted with the next order. Therefore at maximum 5.000RUB
may be used per month, but not more than 80% of the actual invoice amount of an
order.

Group bonus is not paid out but accrued for 12 months.

In case a partner proves a registration the group bonus of the last 12 months is paid
out in January of the following year as a “Special Annual Bonus”

Is there a minimum payout amount for bonus?

Yes, bonus will be paid out from 500RUB (12,50EUR) on

How is the process of bonus payout in Russia?

After the bonus calculation every partner gets the so called “Act of Acceptance”. In
that document both sides (partner and LR) confirm that there is cooperation. The “Act
of Acceptance” has to be signed and then sent back to LR Russia for the bonus
payout. The document can be sent back via fax, but the original document has to be
sent to LR Russia via post.

If the partner won’t sign the document, bonus payout can not take place. This
process has to be repeated monthly.

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Until which time an order can be booked into the current bonus month?

In the DSC you can place or pick you’re order till the last day of the month.

Via callcenter orders which are placed until 3 workdays before the last day of the
month are to be booked into the current month. Requirement is that the bank transfer
takes place directly. Reason is, that bank transfers could last three days in Russia
and only those orders count which are already paid.
Please regard, that this fact will affect the bonus payout and qualifications as well.

How does the process of the registration as a sole trader (individual

entrepreneur work?

The following documents need to be filed out and be brought to the local tax
authorities (personally or via post service):

1) Application for state registration signed by the applicant. If registration is carried

out via a representative, the signature of the applicant shall be certified by a
notary public.

2) Copy of Russian passport (for the Russian Federation citizens), a copy of an

identifying document (for foreigners and stateless persons).

3) Copy of a birth certificate – if a copy of an identifying document does not contain

information concerning the date and place of birth of the person.

4) A copy of document confirming the right of a natural person to reside temporarily

or permanently in the Russian Federation (required for foreigners and stateless
persons).

5) Original or copy of document confirming a residential address – if a copy of the

identifying document does not contain information about that address.

6) Banking documents in respect to the payment of a state duty (at the moment its
amount is 800RUB according to the Russian Federation Tax Code

The registration of sole trader shall be completed within five workdays from the day
of filing of documents with the registration authority.

The registration authority carries out registration of a sole taxpayer with local tax
authorities simultaneously with the state registration.

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What about the Marketing plan for Russia?

The marketing plan will be implemented from Day 1 in Russia. Only the car concept
and the quick start bonus have been adjusted to country specific circumstances.

Please note that the qualifications for the car concept are to be made in Russia
completely. Reason is that the instalments, LR pays for you, are different from
country to country.

Will open seminaries take place in the Moscow headquarter?

Especially in the beginning regular meetings will be held by LR. Details to dates and
localities will be announced on the Russian homepage at the appropriate time.
First come, first serve!

Are there other legal specifics that need to be observed?

The re-sale of food supplements is not allowed in Russia (Russian Consumer

Protection Law). Supplements can only be sold to the subscription price, advertising
another price would be like a resale. This resale is generally not allowed in Russia.

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