ןדיבא ,רהס – ןיד יכרוע דרשמ
ןונבל םייח 'חר.ד.תלת ,ביבא תמר-:'לט.ביבא
ד"וע ,רהס שוש
Shosh Sahar, Adv.
ד"וע ,ןדיבא קחצי
Izak Avidan, Adv.
תרשגמו ד"וע ,ואדנל לכימ
Michal Landau, Adv. & Mediator
To:Unaico Holding LTDMr. Frank RickettsSingaporeSubject : Legal Opinion
The following is our opinion from the standpoint of Israeli law regarding yourquestions relating to the activities of Unaico and Sitetalk. This opinion is based onour conversations and correspondence with Unaico, the information currentlyavailable on the Unaico website, and the following documents:1.
Unaico Policies & Procedures2.
Unaico Terms and Conditions3.
Sitetalk Mall Terms and Conditions5.
Unaico Compensation Plan1.
Is Unaico's compensation programme contradictory to the law in Israel? Is itconsidered a snowball scheme which is forbidden by law?
From a study of the above documents and the provisions of the relevant Israeli law, itappears that:a. Unaico's business transactions do not fit the description of a snowball scheme(Commercial Torts Law, 1999, Chapter One: Unfair competition) becauseUnaico sells, through the Sitetalk store, specific and real products to specificand real customers. In addition, there is no obligation imposed on themembers to enlist additional members. Unaico generally pays a commission orbonus to the members based on actual sales volume and not based on thenumber of members recruited.b. The compensation plan is thoroughly described in Unaico's documents so thatmembers are aware of the details of the plan. Members are free to enter intosuch contractual arrangements if they choose to do so.
(Contracts Law, 1973,Chapter One: Signing Contracts).