Terms of Product Sales

Terms of Product Sales dated 21.12.2023

These Terms of Product Sales shall determine the terms and conditions under which registered users of the Website may order or purchase the Products through the Internet shop. Please note that none of the provisions of these Terms and Conditions and none of the elements of the Website content may be considered as a public offer by PMA or the Seller. Information about product characteristics, prices, and other information have been posted on the Website for informational purposes only and in order to enable you to develop an offer to the Seller for entering into a sales and purchase agreement.

1. Terms and Definitions

When used in these Terms of Product Sales, unless otherwise required by the context, the following terms shall have the following meanings:

1.1. Website shall mean this website www.iqos.com / www.iqos.am;

1.2. Terms of Website Use shall mean the terms of use for the Website dated April 30, 2020.

1.3. Products are tobacco-containing products, tobacco-heating electronic systems, and other goods presented on the Website;

1.4. PMA LLC, or PMA shall mean “Philip Morris Armenia” Limited Liability Company, located at: 2 Vazgen Sargsyan street, “Kamar” business center, 8^th floor, 0010, tax payer’s identification number: 00454054, which is the importer of Products;

1.5. Seller, or we (in all cases) shall mean “Carat Trade “ Limited Liability Company, located at the address: 17/2 Mikoyan street, Yerevan0079, Republic of Armenia, tax payer’s identification number: 02874778, email: Info@carattrade.am, telephone number: 00-374-60-434343;

1.6. Internet shop is a part of the Website (where you can access section «To Shop»), through which registered users can order or purchase Products from the Seller;

1.7. Terms of Product Sales shall mean these Terms of Product Sales. These Terms of Product Sales constitute an integral part of the Terms of Website Use.

2. Product Ordering Procedure

2.1. You may order Products provided that you have registered on the Website, have read and accepted the Website Terms of Use and these Terms of Product Sales, and also meet the requirements set forth in the Terms of Use, namely: (1) you are at least 18 years of age, (2) you are a consumer of tobacco and/or tobacco-containing products, and (3) you reside in the territory of Republic of Armenia.

2.2. You shall send orders for Product sales to the Seller by clicking the "Order" active link in the "Your Basket" section on Internet shop page and selecting the method of payment and delivery by completing the appropriate form or by calling 00-374-44-004767. By sending your order via Internet shop, you thereby express your intention to consider yourself to be obliged to make a purchase according to your order, if it is accepted by the Seller.

Please note that the cost of the Products specified in the Internet shop includes taxes that may be applied when selling Products.

2.3. Your order shall be considered to be an offer to the Seller for entering into a purchase and sale agreement for the Products indicated in your order, under the conditions specified by you at the time of registering the order and the conditions contained on the Website and in these Terms of Product Sales. The Seller may, at its own discretion, refuse to sell the Products to you according to your order (deny your offer). To verify the validity of the order, your verbal confirmation of your age, and also on other matters is needed. The Seller or his authorized person can contact you by phone or by other means of communication to verify the validity of your order.

Non-acceptance of an order maybe a result of one of the following:

· Ordered Product is unavailable on stock;

· Incorrect indication of the Product price or error in the Product description,

· Our inability to deliver to your specified delivery address;

· You do not meet the eligibility criteria set out in these Terms of Product Sales, including us suspecting that you are not over the age of 18.

2.4. In case of revealing any mistakes in your order, please contact us for correction or order cancellation.

2.5. The Seller shall confirm acceptance of your order (accepts your offer) by sending you an e-mail or sms to the address/phone number you've specified when registering on the Website, this message will contain your order number. The sale and purchase electronic agreement shall be considered to be concluded at the time the order confirmation is sent to you.

2.6. After you receive your order confirmation, you can send a request to the Seller, if necessary, about the receipt of the agreement in an uneditable form. At your request, you will receive an email containing all the essential terms and conditions of the agreement between you and the Seller.

3. Sale and Purchase Electronic Agreement

3.1. When the Seller accepts your order, a sale and purchase electronic agreement (hereinafter also referred to as "Agreement") is concluded between you and the Seller. The main terms and conditions of this Agreement shall be determined by these Terms of Product Sales, the information provided on the Website selected by you when ordering the Products, as well as the current legislation of Republic of Armenia.

3.2. You shall pay for the Product after the Agreement is concluded. The payment for the Product shall be implemented either online (in case such technical possibility exists) or in point of sales. We will transfer the Product, after you have fully paid the Product price specified in the Agreement and the Seller or his/her representative, who performs delivery, has confirmed your age. For age and person identification, we will request you to provide to the Seller or his/her representative an identification document. The title in Product shall pass to you, after the Product is transferred to you by the Seller. In the case the sales and purchase agreement is terminated, you are obliged to return the Products to the Seller.

3.3. You shall be entitled to cancel the order accepted by the Seller, that is to terminate the Agreement, until the Product is delivered to you, without paying penal sanctions. You must notify the Seller thereof by e-mail or by phone.

3.4. The Seller reserves the right to terminate the Agreement upon written notification (including by e-mail) to you on unilaterally basis. If the Seller terminates the Agreement or the Agreement is terminated pursuant to other grounds provided in these Terms of Product Sales, you shall not be eligible for reimbursement of your direct costs. If you paid for the order and the Seller terminates the Agreement, the Seller shall be obliged to return the funds to you in full pursuant to paragraph 3.6. below.

3.5. The sale and purchase agreement shall be considered to be terminated from the moment of occurrence or finding by the Seller or its delivery agent, of any of the following circumstances:

• you refuse to receive the Products according to your order;

• you refuse to pay for the Products under the sale and purchase agreement;

• you cannot confirm that your personal data correspond to those indicated on the Website at the time of registration;

• you cannot confirm you are 18 years old to the Seller or its delivery agent.

3.6. In case of termination of the sales and purchase agreement before the transfer of the Products to you, the Seller or his/her delivery agent will not deliver the Products to you. In case you paid for the Products, the Seller will return the money paid to you within thirty (30) days from the moment of your notification of termination of the sales and purchase agreement.

3.7. You shall be entitled to terminate the Agreement (except for the HEETS purchase agreement) subject to the Seller's notification within fourteen (14) days from the date of receipt of the document certifying the fact of payment for the Product (sales receipt). The Seller must return the paid funds within thirty (30)days from the moment you've notified on termination. You can return the Products personally returning the Products to one of the shops listed in paragraph 5.2 below. We advise you to call our Customer Support Service (00-374-44-004767) for more guidance.

4. Payment Methods

4.1. You can pay for your orders in the following ways:

• Cash payment;

• Bank card payment, in case such technical possibility exists.

While making payment through a bank card, please do not use suspicious payment systems and/or websites. For such matters, please consult the bank that has issued your debit or credit card.

5. Delivery

5.1. Courier delivery

Applicable in the city Yerevan only.

For orders starting from 4500 AMD and more – a delivery option is available. Delivery service works on weekdays from 11 a.m to 7p.m. If capacity available, delivery will be organized on the same day, if not, during next working day. Delivery of the Products shall be made to the address specified in your order. If delivery to specified address is not possible, we may contact you to inform on matter, cancel or alter the order. We require a person aged 18 and above to provide identification document for person and age verification. You agree to inspect the Products for any obvious faults, defects before you accept the delivery.

We will certainly contact you to confirm the order, provide you information about order status, as well as for other purposes. You also have the opportunity to contact us on your own.

5.2. To pick up in a shop:

During the order creation, you can see the list of our shops, where the Product is available for pick up. While processing with the order, you should specify from what shop you would like to purchase the Product. After order confirmation, the Product may be reserved in specified shop up to 7 days, and automatically cancelled on 8^th day, if not purchased.

Shops:

Yerevan:

• IQOS Q store Dalma Mall - 3 Tsitsernakaberd Hwy, Yerevan

Hours of Operation: 10 a.m. - 10 p.m.

• IQOS Q store Yerevan Mall - 34 Arshakunyats Ave, Yerevan

Hours of Operation: 10 a.m – 10 p.m

• IQOS Q store Megamal - Gai 16 Gai Ave, Yerevan

Hours of Operation: 10 a.m – 10 p.m

• IQOS Q partner Sas Foodcourt - 11/1 Arshakunyats Ave, Yerevan

Hours of Operation: 10 a.m – 10 p.m

• IQOS Q partner Parma – 3 Northern avenue, Yerevan

Hours of Operation: 10 a.m – 10 p.m

• IQOS Q partner Yerevan City – 5 Mashtots avenue, Yerevan

Hours of Operation: 10 a.m – 10 p.m

• IQOS Q partner Yerevan City – 60/2 Komitas avenue, Yerevan

Hours of Operation: 10 a.m – 10 p.m

The list is for informational purposes and may vary.

6. Returning IQOS

You can return the IQOS device to shop within fourteen (14) days from the moment of physical handover of the Product. Please call to our Customer Support Center (00-374-44-004767) for shop location guidance. Funds shall be reimbursed only subject to availability of a document certifying the fact of payment for IQOS device (sales receipt) and in the same way as IQOS device has been paid for (cash or non-cash payment). Tobacco-containing products shall not be subject to return.

We are entitled to deny returning your IQOS device with a new one if:

• it has passed more than fourteen (14) days from the moment of the products' sales receipt;

• when checking the quality of the product, violations of the terms of warranty service (liquids ingress, etc.) were revealed;

• there is no document confirming the fact of the product purchase, no sales receipt, or any products set item from the product set is absent;

• any of the product components has been in use and is not in a ready-for-sale condition.

7. Warranty

The Seller provides a warranty for the following IQOS tobacco heating system components/devices:

• IQOS Pocket Charger

• IQOS Holder

• IQOS Power Supply Unit

• lil SOLID 2.0

• lil SOLID Es

• VEEV ONE device

• IQOS ILUMA Pocket Charger

• IQOS ILUMA Holder

The warranty period is twelve (12) months from the date of purchase. The date of purchase shall be confirmed by the original document certifying the fact of payment (sales receipt) and/or the warranty certificate indicating the date of purchase. The said documents shall be provided to the Seller for obtaining warranty services.

Please note: non-compliance with warranty terms, including but not limited to, removed codentify from the device, attempts to open, modify or repair a device both by the user and the service provider, not by the authorized manufacturer or its authorized representative, will void the warranty for IQOS ,IQOS ILUMA, lil, and VEEV ONE devices, and you will not be able to use the warranty by approaching official IQOS shops.

Only use the services of official service centers indicated in documents accompanying the Products.

For limited edition devices, the Seller shall replace the faulty product from available stock of devices via same functionality and serial/model. In case the product is unavailable, a device will be offered according to the customer's wish and color based on availability. The proposed version must be technically compatible. A change in device can only be upgraded.

We advise you to register your device on official IQOS website from the moment of purchase. If the device is registered on official IQOS website from the moment of its purchase, within the warranty period, you may be entitled for accidental damage replacement upon such program existence in action and availability.

While traveling abroad to countries where IQOS is commercialized by Philip Morris or it’s affiliates, as an international brand you have International Warranty coverage. You are entitled for International warranty, if device is registered on official IQOS website and device is within warranty period. Service options, replacement device availability, response and delivery times may vary according to country. To make a claim under international warranty you should report your claim to Customer Service Center by number 00-41-21547888 or 00-800-25592559 (or our Customer Service Center 00-374-44-004767 or use our Viber Bot chat support no later than one (1) day from the moment of issue identification, including provide the following information:

(1) The codentify for the affected device;

(2) Description of the symptoms, problems with or causes of the damage to the device;

(3) Error messages;

(4) Actions taken before the device experienced problems and any steps you took to resolve the problems.

Coverage: Dalma, Yerevan Mall, Mega Mall
If a defective e-cigarettes or pod is detected PMI will implement like-for-like¹ replacement of the consumable, in the following instances

• A product or a part of the product is missing

• A product is leaking either before or during the usage

• Unusual aerosol delivery

• Other manufacturing defect

A replacement of the product can only be made in case legal age user has opened the pack in front of sales expert just after the purchase, without leaving the store. In all other cases, burden of proof that a pod is defective before the purchase was made shall rest upon the customer.

In case verification requires a trial, troubleshooting check needs to be done outdoors, due to the tobacco control law.

If requested, you must provide proof of purchase for your device.

PMA or Seller will determine whether you are entitled to device/component replacement in accordance with these Terms of Product Sales.

Here is the list of exceptions, which are not covered by warranty or accidental damage coverage:

• Damage caused by abude or misuse, or actual, or attempted, modification or alteration of the device, power surge;

• Devices with serial number that has been altered, defaced or removed;

• Device has been opened, serviced, modified or altered in the manner in the not-authorized manner.

• The loss or theft of your device;

• Cosmetic damage to your device which does not affect the functionality of the device, including, but not limited to hairline cracks, scratches, dents, broken plastic on ports and discoloration;

• Improper handling, or liquid contact, damage from fire, flood, or natural disaster, war, terrorism, or act of God;

• Malfunction due to use with non-compatible product;

• Other exceptions mentioned in documents stipulating warranty terms.

8. Customer Support Service

We are ready to answer all your questions at the Customer Support Service number 00-374-44-004767 or by e-mail. Customer Support Service operates daily from 10.00 a.m. to 9.00 p.m. You can also leave a message for us on the Website 24 hours a day, and we will contact you at a time of your convenience. Call us: 00-374-44-004767 Write to us: support.am@iqos.com.

For service quality level increase, we will record all calls to our Customer Support Service. Additionally, we will keep your data as contact phone number or e-mail address, to contact you according to your request, or in case of additional questions.

9. Reporting Lost or Stolen device

In the event of losing your IQOS, lil or VEEV device, you may take the action to report it to Q-store or Customer Service Center at 044-00-47-67. Upon your notice, Seller will tag the device as lost in CRM.

In case the Device assigned to an Owner is not reported as lost by the Owner (“lost device”), the Seller may assign the device to another adult user profile upon the latter's request.

In the event of identifying the possessor of the lost device, the Seller shall notify the owner of the occurrence and, upon owner’s request, provide relevant, lost and or stolen device associated information.

However, the Seller reserves the right to withhold certain services, including re-assigning the device to another user, if the device has been reported as lost or stolen. In such cases, the Seller is entitled to retain possession of the device to return it to the rightful Owner or hand it over to the Police.

In case your device was stolen/lost you may also consider reporting the event to the police. Upon receiving an inquiry from the local authorities, in accordance with the Armenian law, PMA will provide them with the requested, available information.

¹ In case of unavailability of the same e-cigarette or pod, PMI will provide any other, compatible pod based on stock availability at the store.