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PUBLIC OFFER

(Offer of the Retail Sales Agreement Containing All Essential Terms and Conditions)

Effective Date: 04.05.2020

Philip Morris Kazakhstan LLP hereby offers any adult individual consumer of tobacco interested in purchase of Goods to sign the public agreement as set forth below:

PUBLIC AGREEMENT

for retail purchase and sale of Goods through e-commerce website WWW.IQOS.COM

Preamble

This Public Retail Sales Agreement (hereinafter referred to as “the Agreement”) shall be an integral part of the public offer and regulate basic terms and general conditions of interaction between Philip Morris Kazakhstan LLP, hereinafter referred to as “the Seller», on the one hand, and any adult legally capable individual tobacco consumer interested in purchase of Goods, hereinafter referred to as «the Buyer», on the other hand, who has accepted the offer (public offer) of the Agreement on the Seller's terms and conditions with no changes as to retail purchase and sale of Goods on the e-commerce website WWW.IQOS.COM (hereinafter referred to as «the Website»).

  1. Definitions
    • Goods shall mean IQOS electric heating tobacco system (hereinafter referred to as “IQOS System” or “IQOS”), products containing heated tobacco, namely, HEETS heated tobacco sticks and any other goods offered by the Seller to the Buyer for price as per the Seller's Catalogue available for sale as of the date of this Agreement execution. The list of Goods and prices thereof as offered for sale by the Seller shall be determined by the Seller from time to time at the sole discretion and set forth in the Seller's Catalogue.
    • Catalogue shall mean the list of the Goods offered by the Seller for sale to the Buyer detailing the range of Goods available, specifying the respective prices and posted in the appropriate section of the Website.
    • Order shall mean duly issued request of the Buyer for acquisition and delivery of the Goods selected on the Website to the address specified by the Buyer.
    • Customer Care shall mean the Seller's call center responsible for Order acceptance and processing and organization of Goods delivery, telephone: 8-8000-80-12-21 (toll free).
    • User shall mean adult legally capable individual registered on the Website who is willing to make an Order.
    • Buyer shall mean a User who made an Order in accordance with the terms and conditions of this Agreement.
    • Seller shall mean Philip Morris Kazakhstan LLP, address: 90, Ilias Zhansugurov Str., Otegen Batyr Village, Ili District, Almaty Region, Republic of Kazakhstan, post code: B40A6M8 or 040700.
  1. Subject Matter of the Agreement
    • The Seller shall transfer ownership of the Goods to the Buyer to use such Goods for purposes other than business, and the Buyer shall pay for and accept Goods in accordance with the Catalogue of Goods effective as at the date of execution hereof and other terms and conditions of this Agreement including those established by orders and (or) other documents of the Seller.
    • Subject to characteristic features of the Goods, mode of acquisition thereof and (or) other purchase and sale conditions of such Goods established by the Seller, there may be provisions established either in addition to or modify or further specify the terms and conditions hereof as well as any other provisions contained in separate orders, rules or other documents of the Seller being an integral part of this Agreement, that the Buyer can review on the Website or address Customer Care.
  1. Agreement Signing and Amendment Procedure
    • This Agreement is a public agreement as defined in Article 387 of the Republic of Kazakhstan Civil Code, which means that Goods price and other terms and conditions hereof are set up by the Seller as at the Agreement execution date for all Buyers without any preference given to some Buyers as compared to others with respect to the Agreement.
    • Prior to entering into this Agreement, the Seller may, at its own discretion, change the terms and conditions of the Public Offer and the Agreement which is an integral part thereof. Upon signing by the Parties, the Agreement may be amended on the grounds and in accordance with the procedure prescribed by the effective laws and regulations of the Republic of Kazakhstan.
    • User registration on the Website shall be deemed confirmation of offer to enter into Agreement and public offer receipt. The offer shall be deemed accepted (acceptance shall be deemed effected by the Buyer) upon Order finalization. Acceptance by the Buyer shall mean that the Buyer have read, understood and agree to Goods purchase terms and conditions, as well as the Buyer's consent to enter into the sales and purchase agreement with the Seller with respect to the Goods under the terms and conditions herein.
  1. General Provisions for Goods Acquisitions
    • The Seller hereby warrants and represents that the Goods offered by the Seller are compliant with all requirements of the Republic of Kazakhstan laws and regulations.
    • The Parties acknowledge and agree that all information materials posted on the Website (video, photo, text, etc.) are provided for reference only and cannot fully reflect all information of the Goods properties and characteristics including color, size and form. The fullest up-to-date information about the Goods can be found on the labeling of the Goods chosen by the Buyer. Should the Buyer have any questions concerning properties and characteristics of the Goods, the Buyer may visit domestic trade facilities or request any information concerning the Goods of his/her interest including personal presentation from the Customer Care before purchase. The list of the Seller's domestic trade facilities with addresses is available in the relevant section of the Website.
    • The Seller offers the Goods of appropriate quality available at the time of sale on the Sellers's stock. The Parties accept the possibility that certain Goods included in the Goods Catalogue can be out of stock for a short while. In this case the Seller shall take reasonable efforts to ensure availability of such Goods at the earliest possible time or, where it is impossible to replenish the stock of the Goods, the Seller shall make the respective changes to the Goods Catalogue.
    • The Goods ownership and related risks shall pass from the Seller to the Buyer upon transfer of the Goods to the Buyer.
    • Certain types of the Goods are covered by the warranty. The warranty period and service life of the Goods covered are specified in the relevant documents furnished with the Goods (hereinafter referred to as “the Warranty Period”). Where no special documents that determine the Warranty Period are furnished with the Goods, this implies that such Goods are not covered by the warranty.
    • In order to provide information about the IQOS electric tobacco heating system, familiarize the Buyer with the principle of its functioning, provide the Buyer with the opportunity to form a personal opinion on the IQOS electric tobacco heating system and its features, as well as subsequently decide on the conformity of consumer properties of the IQOS electric tobacco heating system for the needs of the Buyer, the Seller shall provide the Buyer with the right to test the IQOS electric tobacco heating system on a return basis and under the conditions provided for by this Agreement and the IQOS Test Drive Terms establishing the procedure for temporarily familiarizing with the sample and returning it to the Seller. The IQOS Test Drive Terms shall be available on IQOS.COM website. The IQOS electric tobacco heating system shall be sold under the conditions described in this Agreement by the Seller subject to the Seller transferring the Sample to the Buyer for temporary familiarization. The Sample shall be given for familiarization upon the Buyer's registration of the relevant application posted on IQOS.COM website, if it is technically possible to give the Sample to the Buyer and if IQOS devices are available, as well as if the Buyer is registered in the database of adult users of the IQOS system, which is maintained on the basis of the established form of consent for personal data collection and processing.

The Sample shall be provided to the Buyer on a return basis. The Buyer shall return the Sample within the terms set by the Seller additionally. The Sample shall be returned by the Buyer in accordance with the instructions received from the Seller by telephone or other communication channels used by the Parties.

After returning the Sample, the Buyer may choose any IQOS electric tobacco heating system from the catalog available on the Seller’s website (if any). The Buyer shall pay the cost of the IQOS electric tobacco heating system that he/she has chosen subject to the terms provided for in this Agreement.

If at the time of returning the Sample that was handed over to the Buyer for familiarization, the Buyer does not select any IQOS electric tobacco heating system from the catalog on the Seller’s website or does not pay the cost of the IQOS electric tobacco heating system, then such actions of the Buyer shall be recognized as the Buyer's refusal to execute the Agreement.

In the event of loss or destruction of the Sample transferred by the Seller to the Buyer for familiarization and, as a result, the Buyer's inability to return the transferred Sample to the Seller, as well as if the Buyer did not return the Sample handed over for familiarization after thirty (30) calendar days from the date determined by the Seller for return, the Seller may take any actions permitted by the laws of the Republic of Kazakhstan as necessary to protect the rights of the Seller, including, but not limited to, appeal to the judicial authorities.

  1. Registration on the Website
    • Registration on the Website enables the User the make Orders.
    • Registration on the Website is carried out through the Registration Registration on the Website is a must to make Orders.
    • Persons under 18 years of age may not register on the Website and must leave this Website immediately.
    • The User is liable for the accuracy and reliability of data provided thereby for registration on the Website.
    • The User shall not disclose the password created thereby for registration on the Website to any third persons. Should the User have any suspicions as to the safety of his/her password or possible unauthorized use of his/her account by any third parties, the User should immediately change the password on the Website.
    • During registration and further use of the Website, the Seller may request a scanned copy of the Buyer's identity document to the Seller's email or otherwise as directed by the Seller. Should there be any reasons to doubt the authenticity of this document, the Seller may request a notarized scanned copy of the identity document.
  1. Order Procedure

6.1. The Buyer shall make Orders following the procedure below:

  • go to Buy section, choose the Goods from the Goods Catalogue and add the Goods so chosen to Cart;
  • check whether the Cart contents match the Goods chosen, add or remove Goods as appropriate and press Checkout button;
  • in Personal Data section check your last name, first name, telephone number for accuracy, specify the delivery address in the appropriate section by choosing your city from the drop-down list and indicating your post code, house number, apartment number (if applicable) and press Next to proceed to Payment;
  • in Payment section check the total cost of the Order including delivery, choose payment method from the offered list and confirm awareness of the Public Offer and the Public Agreement including Delivery Terms;
  • confirm awareness of and consent to the Agreement including Delivery Terms by marking the designated box and press Confirm button;
  • on the payment page at http://epay.kkb.kz enter payment card data and perform the operations required to make payment. Then the Buyer is returned to the Website IQOS.COM and the system notifies of the Order number provided that payment authorization is successful. Authorization confirmed, the Order will be automatically processed in accordance with the established conditions;
  • after successful payment, the Buyer will receive the electronic message to the email address specified thereby for registration on the Website with the Order confirmation and details.
  1. Cost of the Goods and Payment Procedure
    • Cost of the Goods is stated in KZT per unit in the Catalogue and payment documents. Cost of the Goods includes value added tax.
    • Cost of the Goods does not include delivery. Delivery shall be paid in accordance with the rates set forth on the Website and Delivery Terms effective at the Order checkout date.
    • Cost of the Goods may be changed by the Seller at its sole discretion with the respective changes introduced to the Catalogue. In this case the price of the Goods paid by the Buyer shall remain unchanged.
    • Payment for the Goods shall be made by 100% (one hundred percent) advance payment of the Order amount by the Buyer using his/her bank card.
    • Payment for the Order by bank card shall be performed through the payment page of Halyk Bank of Kazakhstan JSC. When Goods are paid online by bank card, Halyk Bank of Kazakhstan JSC protects and processes the Buyer's bank card data in accordance with the Payment Card Industry Data Security Standard (PCI DSS). The Buyer's bank card data are transmitted encrypted and not stored on the Website. The Seller has no access to the Buyer's bank card data and does not store such data. Halyk Bank of Kazakhstan JSC guarantees safe processing of online payments. For any Information concerning additional identification rules and methods please refer to the bank that issued the respective card.
    • To prevent fraud on the part of potential buyers aimed at purchase of goods for any purposes other than those covered by this Agreement, the Seller applies the following limit: the Buyer may make 5 or less payments on the Website using one and the same payment during 24 hours.
    • The Seller may use discounts and other special offers established by the rules or other documents of the Seller and available to the Buyer on the Website. By so doing the Seller may establish conditions for such discounts or other special offers.
  1. Goods Delivery
    • The Seller shall deliver the Goods purchased hereunder. Delivery methods, cost and estimated delivery time are specified in the Delivery Terms available in the appropriate section of the Website and at checkout.
    • The Buyer can get the Order status from the Customer Care via Telegram or online chat on the Website.
    • The territory of the Goods delivery shall be the Republic of Kazakhstan.
    • Upon delivery the Order shall be handed to the Buyer. The Buyer must present the original identity document.
    • At the Buyer's request, the Order can be handed over to a third person of at least eighteen years of age who is able to give the Order information (parcel number and recipient's name) (hereinafter the Buyer and such third person shall be referred to “the Recipient”). Order Recipient shall present the original identity document that proves the Recipient's identity. The Seller may refuse to process the Order or transfer the Goods any time, if such Order is intended for a person under the age of eighteen.
    • Risk of accidental loss or damage of the Goods shall pass to the Buyer upon transfer of the Goods and signing by the Recipient of the documents evidencing delivery of such Goods.
    • In case of non-delivery, the Seller shall compensate the Buyer for the cost of the respective Goods and delivery prepaid by the latter, in full, upon receipt of the Goods loss confirmation from the Seller.
    • The Seller's obligation to transfer the Goods to the Buyer shall be deemed fully discharged upon delivery of the Goods to the Recipient by courier.
    • When accepting the Goods from courier, the Recipient shall examine the Goods delivered and check the same for compliance with the declared quantity, assortment, completeness and package integrity. If the Recipient has no claims to the Goods delivered, he/she shall sign the accompanying delivery note or delivery register provided by courier. The Recipient's signature in the accompanying delivery note or delivery register shall evidence the fact that the Recipient has no claims to the Goods and the Seller has duly met the obligation to transfer the Goods in full. Should there be any claims to the Goods delivered (shortage, delivery of Goods other than those specified in the list of enclosed items, etc.), courier, as directed by the Recipient, shall draws up non-conformance report and the Goods shall not be transferred to the Buyer, unless the Recipient selects to accept such Goods with the respective note in the above non-conformance report and delivery register. This being the case, the Customer Care, upon receipt of the information from courier, shall contact the Buyer to determine further steps to be taken to deliver appropriate Goods or return money if the Buyer has refused to accept the Goods.
    • The Buyer shall be liable for accuracy and reliability of any information provided at the Order checkout. Otherwise the Seller shall not be liable for on-time delivery.
  1. Exchange or Return of Non-Conforming Goods
    • Should any defects of the Goods be detected during the warranty period, the Buyer shall file a claim with the Customer Care, unless otherwise additionally directed by the Seller as the Buyer could find out having addressed the Customer Care.
    • Upon occurrence of a warranty case, the Goods shall be exchanged or returned in accordance with the laws and regulations of the Republic of Kazakhstan.
    • The list of warranty and non-warranty cases for certain non-food products is set forth in Appendix No. 1 to this Agreement.
    • Should the Goods be exchanged based on this article hereof, the warranty period of the replacement Goods shall not start over again.
    • Should any non-conforming Goods be exchanged or returned, the Seller shall incur expenses to deliver such non-conforming Goods to the Seller's address.
    • The Goods shall be exchanged upon application of the Buyer submitted in the form of Appendix No. 2 to this Agreement.
  1. Exchange or Return of Conforming Goods
    • Should it become necessary for the Buyer to exchange or return any conforming Goods, the Buyer shall address the Customer Care to get information about the exchange or return procedure for such conforming Goods.
    • Conforming Goods may be returned or exchanged within fourteen calendar days in accordance with the laws and regulations of the Republic of Kazakhstan, provided that such Goods remain unused, has original appearance, consumer properties, labels and documents evidencing purchase of such Goods.
    • The Goods shall be deemed unused with both the appearance and consumer properties thereof preserved in the following cases:
  • no damages to the Goods packaging /surface;
  • availability of functional charger, holder, power adapter, USB cable;
  • no scratches or other damages on the Goods surfaces;
  • no tobacco particles or odor in the holder and the charger, integrity of the holder blade;
  • no tobacco particles or odor in the cleaner and completeness thereof – availability of the cleaning hook and brushes integrity;
  • availability of the sticker on the charger, protective film on the power adapter and fixing ring on USB cable;
  • intact serial number of the Goods;
  • availability of the plastic stand for the charger and the holder, user guide and warranty in three languages.

Missing film on the box of the Goods shall not be deemed as defect of appearance.

  • Should any conforming Goods be exchanged or returned, the Buyer shall incur expenses to deliver such conforming Goods to the Seller's address.
  • The Goods shall be exchanged upon application of the Buyer in the standard form.
  1. Personal Data
    • The Seller shall ensure confidentiality and processing of personal data of the Buyers and Users as personal data subjects in accordance with all applicable requirements of the Republic of Kazakhstan laws and regulations governing personal data protection including but not limited to the principles, requirements, and obligations of the personal data processor prescribed by the Republic of Kazakhstan Act No. 94-V on Personal Data and Protection Thereof dated May 21, 2013 (hereinafter referred to as “the Personal Data Act”).
  1. Final Provisions
  • Relationships between the Buyer and the Seller shall be governed by the effective laws and regulations of the Republic of Kazakhstan.
  • This Agreement can be amended by the Seller at its sole discretion without notice to the Buyer. New version of the Agreement shall come into force upon publication on the Website for information of the Buyer.

Appendix No.1 to the Public Agreement

for retail purchase and sale of Goods through e-commerce website WWW.IQOS.COM

List of warranty and non-warranty cases for IQOS electric tobacco heating system

1) Non-warranty cases:

Damages to the Holder

С001

damaged cap

С002

damaged blade

С004

damaged charging contacts of the holder

С020

the holder gets stuck or got stuck in the charger

С021

the holder is inserted in the charger with the wrong side

С022

damaged back\ middle part of the holder

С025

paint is peeling off the holder due to mechanical stress

С027

damaged buttons of the holder

С028

the holder is damaged due to overheating (external temperature effect)

C004

damaged charging contacts of the holder

Damages to the Charger

С007

damaged display

С010

damaged USB port

С025

paint is peeling off the charger

С026

damaged lid of the charger

С027

damaged buttons of the charger

С028

the charger is damaged due to overheating (external temperature effect)

C005

damaged lid clip and spring

C006

damaged lid open button

Damages to Accessories

С011

 damaged power adapter

С012

 damaged USB cable

С024

 damaged cleaner

С028

 Accessories are damaged due to overheating (external temperature effect)

Other

C999

Error code not stated in the fault tree analysis diagram, if damage is caused by operation other than in accordance with the user guide, seller and/or manufacturer's recommendations.

2) Warranty cases:

A004

tobacco stick session of less than 6 minutes

A006

LED light on the holder does not turn on

A008

LED light of the holder and the charger does not turn on

A010

LED light of the holder is solid red

A011

LED light of the holder is solid orange

A012

cleaning LED is solid red

A015

LED light of the holder is solid red

A033

cleaning LED and LED light of the holder are solid red

A034

the charger does not take charge

A035

LED light of the charger is green for 1 second

B000

tobacco stick bursts into flame during or at the end of the session

B004

IQOS session and tobacco stick use is less than 6 minutes

B006

holder battery indicator light on the charger is off

B008

LED lights of the holder and the charger do not turn on

B010

LED light of the holder is solid/flashing red

B011

holder battery indicator light on the charger is solid /flashing orange

B012

cleaning LED of the holder is solid red

B015

LED indicator of the holder is solid red

B018

LED indicator of the holder becomes orange and then red

B019

LED indicator of the holder is orange but operable

B023

aluminum element is poorly anodized

B028

the lid goes beyond the body

B029

the lid closing mechanism goes beyond the body

B031

holder battery indicator light on the charger is solid /flashing orange

B032

the charger charges the holder less than 20 times

B033

cleaning and battery indicators of the holder are solid red

B034

the charger does not take charge

B035

LED lights of the charger blink green for 1 second

B999

it is impossible to determine which element is damaged: the holder or the charger

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