• These Tiens Policies Procedures (International Version) (hereinafter referred to as TPP) will be effective and supersede all its earlier versions from the 26th of December, 2011.
• The TPP is aimed at maintaining a sound order in the direct-selling market and safeguarding the rights and interests of distributors. Therefore, every distributor must carefully read the TPP and ensure that they understand both their obligations and their rights and interests. Any deviations from the provisions of the TPP may lead to termination of distributorship, forfeiture of bonuses and other rights and interests.
• If any of the provisions in the TPP is in contradiction of any local laws, regulations or administrative rules, the latter will override. Any adaptations or revisions that local branches of Tiens Group may deem necessary according to their actual conditions must be referred to China Headquarters (CHQ) for approval. Then the local branches must inform their distributors accordingly.
• The CHQ reserves the right to revise and explain the provisions of the TPP from time to time.

As far as your Tiens contracts and all written documents printed and published by Tiens Group are concerned, words and

terms below must be construed as follows unless otherwise stipulated:

Tiens refers to Tiens Group and all the subsidiaries it sets up globally under the name of Tiens or Tianshi.

CHQ refers to Tiens Head offices established at No.18 Xinyuan Road, Wuqing Development Area, New-Tech Industrial Park, Tianjin, China.

Tiens Distributors refers to individuals who, upon becoming eligible according to Tiens Business Plan, are authorized to sell Tiens products and those Tiens distributes, and to sponsor others to become same.

Tiens Distributor Business Plan comprises all compensation and rewards plans, sponsoring procedures stipulated by Tiens, and all methods, rules and regulations and measures Tiens lay down to represent to distributors, Tiens products, Tiens business and the lines along which to operate thereof. Tiens Distributor Business Plan is included in Tiens Business Guide, and Tiens has the right to make revision to it according to actual conditions.

Any Tiens distributor, under whose introduction other persons apply to join Tiens business and are approved to become

Tiens distributors, is regarded as having sponsored the new distributor and, as such, must perform their duties of providing

trainings and supports for the new distributors.

The TPP is part of Tiens Business Plan.

Tiens products refer to products manufactured or supplied by Tiens or its OEM/ODM suppliers and distributed by Tiens, and products, sales-support goods, video/audio materials or services provided by Tiens and sold or used by its distributors according to the TPP.

Business Support Materials (BSM) refers to any presentation, explanation, or illustration of Tiens Business Plan or any part thereof, in both written and recorded form and includes meeting cds, dvds which may be developed, produced, and distributed by Tiens for the purpose of training and motivating the Distributors in their Business Group, as well as for the purpose of attracting prospects in becoming Tiens Distributors. The content of BSM must comply with TPP and should not infringe in any way on Tiens’ copyrights, trademarks, or other intellectual property rights, or provisions or any other applicable laws, rules and regulations.

HOW TO APPLY FOR TIENS DISTRIBUTORSHIP

1. Any person who have capacity for civil conduct according to local laws, irrespective of their sex or race, are eligible to apply for Tiens distributorship and enjoy the equal opportunities to become a Tiens distributor.

2. People who are not permitted to engage in direct-selling or business operations according to local laws are not eligible to apply for Tiens distributorship.

3. Regular employees of Tiens Group and their direct relatives are not eligible to apply for Tiens distributorship. (A direct relative refer to the persons related to the employee or his/her spouse by one generation upwards or downwards, e.g. parents, children and siblings, etc.)

4. Tiens distributors, who are no longer eligible as such according to local laws or Tiens rules, will have their distributorship terminated from the date relevant reasons occur.

5. Tiens distributorship comprises the eligibility, rank, rights, obligations and responsibilities of Tiens distributors. Any person can only possess one single Tiens distributorship. Tiens strictly prohibits anyone to apply for two or more Tiens distributorships. In cases of violations of this rule, the first approved ID number of the offender will be retained with all other ID(s) becoming invalid.

6. Its not permitted to transfer or sell Tiens distributorship. In cases of violations of this rule, Tiens will regard the sale or transfer as invalid, and all the legal liabilities and losses incurred therefrom will be borne by the offender.

7. Tiens distributorship number is the only way to identify a Tiens distributor; in other words, each distributor carries one

single Tiens distributorship number.

8. Tiens Distributor who personally sells products other than Tiens products, who personally participates in any non-Tiens selling activity or who sells services (e.g., tax services, insurance, investments, etc.) will not sell such products or services to another Tiens Distributor or will not induce another Tiens Distributor to participate in any other non Tiens selling activity and/or to sell such products, literature, sales aids, or services to any Tiens Distributor. Induce here insplies to persuade (or attempt to persuade) another Distributor (either personally or through a third party) to sell any product or service whether or not this is done to obtain revenues or for any other reason.

9. Tiens reserves the right to accept or reject the application of any person for Tiens distributorship.

10. Validity and renewal of Tiens Distributorship:

• Tiens distributorship is valid from date when the distributorship ID granted, and expires on the last day of the 12th accounting month.
• Tiens distributors must perform required procedures for renewal before their distributorship expires.
• In case of failure to renew the distributorship within the valid period, or that Tiens rejects application for renewal within or beyond the valid period, the Tiens distributorship becomes invalid.
• In case of violations of the provisions of the TPP or other rules within the valid period, Tiens reserves the right to reject application for renewal of distributorship.
•  Automatic Expiration: if the distributor doesn’t place any order within the 12 months of the valid period, he/she may apply for distributorship in the next month following the expiration; otherwise, he/she may not apply until 6 months after the expiration.

1. Those who wish to apply for Tiens distributorship should be of 18 years and above age and must be recommended by authorized Tiens distributor. During Registration process Applicant will provide a unique identifying number for tax or business purposes, issued by the Government of India.

2. The applicant shall confirm that he has read the TPP and has completely understood all contents of the Tiens Business Guide before filling out his Tiens distributor Agreement. He must also abide by all the regulations and stipulations governing Tiens distributors.

3. The Agreement must be sent immediately to Tiens after been duly lled up. Tiens distributorship number and identity card will be issued upon approval from Tiens, whereby the applicant can become a Tiens distributor.

4. The information the applicant gives should be true and valid; they are not permitted to borrow, apply in others’ name or use other illegitimate methods to become Tiens distributor; otherwise, Tiens reserves the right to pursue the relevant remedies (including instantly terminating the Tiens distributorship)

5. Prohibited sponsoring practices: No prospect, as a condition to becoming a new Distributor shall be required to, nor any currently authorized Distributor, as a condition to provide assistance to a prospect or new Distributor, in the development of their Tiens Distributorship, require the prospect or such new Distributor to :

• Pay any joining fee or purchase any specified amount of products.
• Maintain a specified minimum inventory of Tiens products or purchase any non-Tiens produced “product” or other “pack” or “Starter Guide”.
• Purchase literature, audio-visual aids.
• Purchase tickets for and/or attend or participate in rallies, seminars, or other meetings.
• A Distributor is not required to purchase Tiens products for an amount or quantity that exceeds the amount for which= such products can be expected to be sold or resold to consumers.

The only requirement which a sponsoring Distributor can impose upon a prospect whom he is willing to Sponsor is that the prospect shall fill and sign an Application for Distributor Authorization Form and submit it to Tiens and receive a Business Starter Guide and an Identity Card from Tiens.

6. Refusal of Renewal: Tiens reserves the right to refuse any renewal request and can revoke any Distributor’s renewal application if, in its opinion, the Distributor’s activities have not been in accordance with the interests of Tiens India, or if the Distributor did not comply with any of the TPP during the 12 months preceding the period for which renewal is sought.

7. Resignation: A Distributor can cancel his Tiens Business at any time by sending a letter to Tiens India with a copy to his Sponsor and the highest rank in their Network.

8. Informal Partnerships: In the case of an informal (unregistered) partnership, the Tiens Distributorship shall be only under the names of the individual partners and not under a business name that the partnership might use for other transactions.

9. Legal Entity Distributorships: A Distributor may own and operate his or her Distributorship as a sole proprietary concern or registered partnership form or limited liability company (LLC), provided it complies with certain requirements and conditions. Tiens values its personal relationship with its Distributors and would not ordinarily appoint a sole proprietary concern/partnership form/limited liability company as a Distributor or approve of a transfer of a Tiens Distributorship from one or more individuals to any of the above. However, Tiens recognizes that certain advantages could accrue to a Distributorship which adopts a legal entity structure, including

• Tax benefits and tax savings,
• Perpetual existence and limited liability for a LLC
• Estate planning, and
• Ease of transfer.

It may also happen that, the impersonal character of a legal entity Distributorship could result in unfavorable consequences to Tiens unless certain conditions or restrictions are imposed. Accordingly, Tiens will require such Distributorships to comply with the following:

• The legal entity in addition to Tiens Distributor application form must file with Tiens an application Form, duly signed by its Sole Proprietor or Partner or Director as applicable along with Certificate of Incorporation, Partnership Agreement or trust documents, and the Permanent Account Number (these documents are collectively referred to as the "Entity Documents").
•  All persons who actually conduct, and who intend to participate in Tiens Distributor Business of the Distributorship must comprise the majority of the partners in case of a partnership form or in case of a company collectively own not \ less than a majority of the paid up equity share capital of the company and must constitute a majority of the Board of Directors of the company.
• No change in the partners, in case of a partnership form or in case of a company, no change in the number of shares issued, in the ownership of the shares or in the membership of the Board of Directors, may be made, and no agreement or arrangement affecting control of the company by the individuals conducting the Distributorship business may be adopted, without application to, and the prior written approval by, Tiens.
• All partners, shareholders and Directors shall personally and irrevocably guarantee due performance by the partnership form / company of all of its obligations and responsibilities as a Distributor or especially those outlined in the TPP as set forth from time to time in official Tiens literature.

(C) RULES REGARDING TIEN DISTRIBUTORSHIP FOR SPOUSES

1. When a legitimate couple applies to join Tiens:

• If both husband and wife are willing to become Tiens distributor, the spouse can register as one distributorship. By signing jointly on one application, both the husband and wife will have the obligations of Tiens distributorship, and they must abide by the TPP; if either of them violates any Rules of TPP, each one of them must take the full responsibility and be liable for any action under these TPP
• If one of the couple does not intend, or according to Tiens requirements he/she is not eligible, to be a Tiens distributor, then he/she does not need to sign up for application. He/she has no right to make any claim/decision regarding any behavior of his/her spouse as Tiens distributor. If he/she intends to join his/her spouse to build Tiens business together, he/she shall obtain formal consent in writing from the spouse, and then apply formally to Tiens. The Tiens distributorship will be considered valid upon approval by Tiens. The husband and wife are allowed to be in the same network, and either of them is permitted to have a Tiensdistributorship, provided that they are in direct downline/up line linkage and that the same has been reported to Tiens. In case both the husband and wife are willing to go in direct downline/upline linkage, they should both sign on their
• application, so that either of them have the rights and obligations of Tiens distributorship in order to build their Tiens business.

2. If two Tiens distributors get married, either they can retain both their original Tiens distributorships, or either of them can relinquish his/her status to become a direct down-line of their spouse.

3. When divorce occurs between a couple who possess a single Tiens distributorship, the following regulations shall be complied with:

• Upon agreement between the former couple, the ownership of Tiens distributorship shall be continued by the elected party, and the waived party may apply for a new Tiens distributorship.
• Should the former couple be unable to reach an agreement, Tiens will temporarily freeze money to the name of the distributorship until an agreement is reached.

(D) INHERITANCE AND CONTINUANCE OF TIENS DISTRIBUTORSHIP

1. If a Tiens distributorship belonged to a couple, when one spouse of the couple passes away, the remaining spouse will be considered as possessing the Tiens distributorship and will inherit all rights and obligations of the deceased.
2. In case that Tiens distributorship belongs to a deceased individual who has a designated inheritor, legal inheritor or designated gift receiver eligible for Tiens distributorship, Tiens will support the latter to apply for Tiens distributorship and the original individual loses his/her distributorship from the date of inheritance.
3. If a deceased distributor has a designated inheritor, legal inheritor or designated gift receiver who is in possession of Tiens distributorship, the latter must choose a single one between the two distributorships and then the other is forfeited.
4. If there is no designated inheritor, legal inheritor or designated gift receiver for a deceased distributor within 6 month of death, or the former gives up the inheritance/gift, Tiens regards the distributor as dropping out of Tiens business, and it has the right to dispose of the distributorship and all of the rewards and other interests thereof.
5. In case a Tiens distributor loses his/her labor capacity or is 65 or older, Tiens, with a view to continuing to expand Tiens network, permits the distributorship to be passed from one generation to another; the Tiens distributor is allowed to designate in advance, according to his/her own wishes, a direct relative (children, spouse or siblings) eligible for Tiens distributorship, so as to pass on the distributorship; the original distributor loses his/her distributorship from the date when it is passed on; if the person who receives the distributorship is already a Tiens distributor, the person must choose a single one between the two distributorships and then the other one is canceled.

(E) TERMINATION AND RE-APPLICATION OF TIENS DISTRIBUTORSHIP

1.  Termination of Tiens Distributorship means Tiens terminates all the contracts it reached with the concerned Tiensdistributor. The Company shall be entitled to terminate the contract by giving him/her 7 days’ notice of the same in thatcase the Distributor will cease to be recognized as part of Tianshi sales team and will From the date of issuance of thetermination notice, the terminated Tiens distributor will immediately lose his Tiens Distributorship, rights and interests,including the bonuses generated from the concerned Tiens Distributorship.  
• Providing false information in the Tiens Distributor Agreement (including non-original signature).
• Distributors are found to have seriously violated the TPP.
  
• Distributors who have violated the minor rules in the TPP fail to correct after receiving correction notice from Tiens.
  
• Those who violate the laws or have been sentenced to be imprisoned.
  
2. Under following circumstances, a Tiens distributor (including one of the spouses) will be notied by letter from Tiensto make necessary corrections. These include, but not limited to, monitoring and disciplining measures and termination of Tiens distributorship
3. When a Tiens distributorship is terminated, the former distributor loses all his/her position in the network, including, but not limited to, bonus ranks and eligibility.
4. Tiens reserves the right to terminate his/her Tiens distributorship and rolls up his/her downline network to his/her line of sponsorship. When the terminated distributorship is 7-star or above locally, the structure must be maintained and thedistributorship will be renamed TIANSHI; and if it is a rank below 7-star, the distributorship will be simply struck on the network with downlines rolling up.
5. Where Tiens distributorship is terminated by spontaneous withdrawal, the former-distributor is not allowed to re-apply for a distributorship until six months after the termination.
6. Where Tiens distributorship is compulsorily terminated, the former-distributor is not permitted to re-apply for approvaluntil twelve months after the termination.
7. The Company reserves the right to reject any Re -Applications made by a Distributor and may do so in its sole and absolute discretion.

(A) RIGHTS & INTERESTS OF TIENS DISTRIBUTORSHIP

Tiens Distributorship is entitled to the following rights & interests:

1. To buy and use Tiens products.
2. Sell Tiens products for retail prots.
3. Participation in Tiens Compensation Plan and other Incentive Plans and receive relevant bonuses and awards.
4. Sponsor other eligible persons to join Tiens to build direct-selling career.
5. Participation in other events organized under authorization fr om Tiens.

Distributors must abide by all local laws and regulations, especially those laws, rules and commercial rules related to direct-selling operations; distributors must not make any transactions ruled by local government as fraudulent or illegal, not should they participate in any kind of activity that might compromise Tiens reputation.

When carrying out any activities related to Tiens business (including retailing, sponsoring and meetings, etc.), Tiens distributors must identify themselves as such by producing Tiens distributorship card. Distributors must always completely abide by the TPP, Tiens business plan and other relevant methods, rules, policies, procedures, regulations, measures and revisions.

1. Tiens distributor must order goods directly fr om Tiens branches or its authorized stores.
2. Tiens distributors must sell products at prices prescribed by Tiens. They are not allowed to add any surcharges, or to make any other improper behaviors.
3. Tiens distributors must oer product demonstration and give verbal explanation of usage and notes shown on product tags.
4. Tiens Distributor shall not sell Tianshi product range to or through retail outlets/shops or ecommerce platform as it is not permitted by Direct Selling Guidelines 2016 and company's sales policy. The products will be sold through the Tianshi Authorised Stores, Branches and Company's online shopping portal.

1. All journals/magazines and video/audio materials created and published by Tiens are under protection of local copyright laws; without prior permission by Tiens, Tiens distributors or any other person may not reproduce, reprint, produce and copy the above-mentioned materials in whole or in part in any form. Otherwise, all legal liabilities incurred must not be held against Tiens, and should be borne by Tiens distributors themselves; and Tiens has the right to make claims according to law for any losses it may sustain.
2. Tiens distributors can only use the words, audio/video materials published by Tiens and for the sole purpose of helping building Tiens business.
3. Without prior authorization by Tiens, Tiens distributors may not create, publish or sell in any form sales-supporting materials related to Tiens.
4. Tiens Distributors are permitted to make audio/video recordings of all kinds of meetings held by Tiens, provided that the quality of the meetings or the participation of others are not compromised, and that only one copy of audio/video can be made, and that this sole copy can only be used by the distributor himself/herself, and it may not be reproduced, sold or used for other purposes.

1. A meeting must be called according to the rules of Tiens. A meeting organized by Tiens distributors must have the theme/purpose of training distributors, and is used for promoting Tiens business or Tiens products or products sold by Tiens. The organizer of the meeting may not make any personal benet beyond the TBP through such meetings to achieve other objectives.
2. The Tiens distributor who owns name/marks of networking/centre must report to Tiens to register such marks and names. The marks cannot be used until being ocial approved by Tiens. Any network without the prior consent from Tiens is not permitted to use such network/center name/marks to carry out direct-selling activities.
3. A Tiens distributor network, when being engaged in activities that need name/mark to self-identify, must bear the name of “Tiens Distributor” as the main identication, with the name of the network as an auxiliary part. Example: Tiens Distributors XX Network Training Session

1. A Tiens distributor must be aware that all Tiens trademarks, medals, symbolic badges, designs, layout of books/ magazines, audio and visual materials, as well as all industrial property rights and copyrights and other rights related to TBP and products used by Tiens are the properties of Tiens. All these have been registered, used and authorized for the exclusive use by Tiens.
2. Particularly, Tiens distributors shall not misuse Tiens brand and trademarks in the following ways:

•  Produce or obtain and sell any goods printed with 天􀀀/ Tiens/Tianshi or Tiens symbols and trademarks through other sources than Tiens.
•  Print any Tiens brand and trademarks on his vehicles except using the stickers distributed by Tiens.
•  Advertise or broadcast Tiens business activities or Tiens products in any media.
•  Use the name 天􀀀, Tianshi or Tiens as the name for any organization/business, or authorize others to use such names.
•  Without prior permission of Tiens, it is not permitted to use Tiens name or trademarks.
•  It is not permitted to try to register Tiens name or trademarks with ocial or semi-ocial organizations, or to raise objections in any form or claim any rights about them. Wh ere registrations have been applied for, objections raised or rights claimed, special instructions fr om Tiens must be followed.

1. In case of all major claims or complaints made by Tiens distributors from his/her the network, the distributor must promptly report to Tiens, and provide it with all written materials and dialogues so as to constantly improve the service levels of Tiens.
2. Tiens distributors can only display or sell Tiens products in stores authorized by Tiens; they may not or delegate others to sell or display Tiens products on any public occasions.
3. It is not permitted to sell products or recruit Tiens distributors in a door-to-door way, or to sell products or present Tiens business plan to stranger/passersby on public occasions.
4. Tiens distributors may not use telemarketing method, fax, yers, posters, large quantity mailings or other communication methods to promote the sales; and they are not permitted to ask others to join Tiens business in any improper way.
5. Except ads approved by Tiens in writing, it is not permitted to create, publish or release ads promoting products or recruiting distributors; or ads for these purposes in essence.
6. Tiens distributors may not take advantage of the powers of individuals, enterprises or other organizations to sell Tiens products or introduce new Tiens distributors in any improper manner such as intimidation or threats or follow any unfair trade practices.
7. It is not permitted to represent Tiens, its products, or products it distributes in any exaggerated or unfounded or misleading way or .require/encourage other Distributor to purchase goods in unreasonably large amount or to purchase any literature, training or sales demonstration equipment, nor will sell any unapproved literature/training material.
8. It is not permitted to represent in a distorted way the prices, specications, quality, functions, grades, ingredients, styles, models, places of origins or supplies details, etc. of Tiens products or products distributed by Tiens.
9. Professionalism: Tiens Distributor shall at all times conduct himself or herself in a courteous and considerate manner and shall not engage in any high-pressure selling, but shall make a fair presentation of Tiens Products including, when and wh ere appropriate, demonstrations of such products.
10. Tiens Distributor shall never impose himself or herself upon his/her prospective customer and shall abide by the following:
• He/She shall always take a prior permission or appointment before approaching a prospective customer and shall indicate the purpose of his or her visit and identify himself or herself as a Tiens Distributor.
• He/She shall provide the following information to the customer at the time of sale, His/ Her name, address and telephone number along with that of Tiens.
• He/ She shall at all times carry identity card provided by Tiens along with any photo ID’s issued by any Government agency.
• He/She shall x time & place for inspection of the sample and delivery of goods, if customer so desires.
• He/ She shall provide customer receipt with the description of the products to be supplied as per point 20 below.  
11. If the customer indicates a desire not to continue the discussion, the Tiens Distributor shall immediately do so and
    
12. It is not permitted to represent that Tiens products or products distributed by Tiens have sponsors, approvals, functions, auxiliary parts, purposes or merits that they don’t.
13. Tiens products or products distributed by Tiens can only be sold at the prices prescribed by Tiens for local markets.
14. It is not permitted to import or sell any Tiens products or products distributed by Tiens that are not supplied by Tiens, or to export or help others to export Tiens products or products distributed by Tiens.
15. It is not permitted to represent and promote non-Tiens products or products or services distributed by Tiens as Tiens products/services.
16. Tiens distributors may not use Tiens networks to sell products/services which are not manufactured or distributed by Tiens (e.g. insurances, taxes, real estate, investment, etc.)
17. Without prior permission of Tiens, it is not permitted to register or set up websites related to Tiens and use them to release Tiens-related information, product description or business promotion materials.
18. Repackaging: No Re Packing / Re Labelling of Tiens Products, Tiens Distributors may not package, or otherwise change or alter any of the packaging labels of Tiens Products
19. Written Sales Receipt: Tiens Distributor shall deliver to the Customer at the time of sale a written and dated receipt which will include
• Description of product sold
• Price charged which should not be above than the printed MRP
• Must mention the selling Distributors ID and address along with telephone number and Tiens Refund policy
20. Each Distributors are responsible for paying taxes on any income generated as an Independent Distributor and are also liable to provide to Tiens such tax and information forms or declarations as Tiens is legally required to submit to the relevant governmental bodies or agencies.
21. While been engaged in marketing/sales, Tiens distributors are not permitted to make any charges in any other formthan prescribed within the rules laid down by Tiens.
22. It is not permitted to disparage, verbally attack Tiens, other Tiens distributors or other lines of business or trades.
23. It is not permitted to make fraudulent behaviors, hoard up products for market speculation, or manipulating sales volumes or disrupt market orders.
24. While being engaged in marketing/sales, Tiens distributors must practice what they preach, that is, they are not permitted to viciously spread in the market any negative remarks that are not conducive to Tiens development or hurt Tiens reputation.
25. Tiens distributors must ensure that Tiens is free fr om any actions, claims, demands or law suits that any individual, group or organizations may take against it as a result of any distortion, fraudulent representation, counterfeiting, threats or intimidation that they as Tiens distributors may cause to Tiens business plan or products. The oending distributor must make compensations to Tiens or parties concerned for any pecuniary losses, damage to reputation, etc., including costs for law suits and other legal actions Tiens may take against the oender.
26. Without prior permission of Tiens, it is not permitted to accept media interviews or reports in the capacity of Tiens distributor.
27. Any of Tiens distributors is not permitted to:
1. Represent themselves as the employee or commercial partner of Tiens or organizations related to Tiens.
2. Represent themselves as the commercial agent, go-between, business representative, delegate, manager, etc.
3. Take slandering, threatening or intimidating actions in any form against Tiens employees for the ocial activities they are bound to make as such.
28. Tiens distributors are not permitted to participate in any political or religious activities while pursuing Tiens business no matter when or wh ere it happens, or to make such behaviors as personal idolism, collusion and association etc.
29. 5-star or above Tiens distributors must nish training sessions according to their ranks in line with Tiens rules. Otherwise, Tiens has the right to withhold any bonuses, ranks, access to travel seminars or any other rewards or honors related to the distributor.
    
• 5-star and 6-star distributors must nish, in the achieving or next month, the compulsory courses of the primary training organized by Tiens branches.
• 7-star and 8-star distributors must nish, in the achieving or next month, the compulsory courses of the secondary training organized by Tiens overseas regional oces.
• Honorable rank distributors must nish, within six month of the achieving month, the compulsory courses of the advanced training organized by Tiens overseas regional oces or CHQ.

(I) RESPONSIBILITIES OF SPONSORSHIP

1. When sponsoring others to become Tiens distributor, a distributor must represent the TBP and TPP truth fully and honestly. During the representation, the Tiens distributor may require the potential distributor to sign the application form, provided that he/she does not make any fraudulent, concealed or misleading statements about the TBP. During the representation, the distributor must especially stress on the following points:
• The qualification of becoming a Tiens distributor
• TBP
• Importance of attending various meetings organized by Tiens
• TPP
• Obligations and responsibilities of Tiens distributors
• Compensation Plan
• Categories, prices, indications, quality and purposes of Tiens products
• Resignation of distributors
2. It must be explicitly ascertained whether the potential distributor and his/her spouse were Tiens distributors. If one happened to be a Tiens distributor, the distributor can only sponsor the person six months after the termination of distributorship. In the event the sponsored person violates any of the provisions of the TPP in the future, leading to the situation wh ere Tiens Corporation has to give punishment, and the sponsoring distributor and the up-lines sustain losses, then the matter must be resolved by the concerned parties according to proper rules.
3. The sponsoring distributor must fulll the following responsibilities:
• Giving their downlines regular retailing trainings, guidance and encouragement. Keep in touch with all members of the network and solve their problems whenever it’s necessary.
• Providing special trainings to ensure that all distributors in the direct-selling network operate according to TBP.
• In case of any disputes among the downlines, mediating and solve the disputes in prompt and friendly manner.
• Supervising the performance of the downline distributors to ensure professional operation and compliance with professional ethics standards, proper promotion of Tiens business and superior services.
4. In any given circumstance, Tiens distributors should not try to viciously recruit distributors by directly or indirectly assisting, instigating, intervening or persuading other distributors to leave their sponsoring line or network.
5. Tiens is dedicated to maintaining the integration of all lines in networks, and it does not permit distributors to shift their lines arbitrarily; Tiens reserves the right to withhold approval for application for shifting sponsoring lines.

Besides the responsibilities as Tiens distributor and sponsor, honorable rank distributors must also fulll the following ones:

Ensuring that all distributors in his/her network provide services to consumers in compliance with the TBP.Ensuring that he/she serves as a role model by strictly abiding by the TPP and all revised rules laid down by Tiens; that he/she provides trainings to all distributors in his/her network so that the latter understand the focus in operating Tiens business and abide by the TPP and all revised Tiens rules.

In case the distributors in his/her network are located in dierent regions, the honorable rank distributor must provide trainings to distributors in various localities, or help them to participate the conference that boosts their Tiens business.

Honorable rank distributors must keep up an active attitude in operating his/her network, and focus on cultivating and guiding the sound growth of the network; in case they fail to fulll the following key responsibilities, or to play the role of the network’s leadership, Tiens has the right to withhold any bonuses, ranks, access to travel seminars or any other rewards or honors related to the distributor.

• When discovering his/her downline distributors spreading in the market any negative remarks that are not conducive to Tiens development or hurt Tiens reputation, the honorable rank distributors must put an end to the behavior in the rst opportunity, help the oending distributor to correct their wrong understanding, and report the matter to Tiens.
• Honorable rank distributors must make an inspection trip at least once every two months at his/her own cost, to the local markets for organizing education and training events and providing consultation services to the networks.
• In case of cross-border market operations, honorable rank distributors must make an inspection trip at least twice every year at his/her own cost, to the overseas markets for organizing education and training events and providing consultation services to the overseas networks.
• Honorable rank distributors must actively organize systematic network education activities and help the spreading of these activities.
• Bronze and silver rank distributors must hold business presentation or family party at least once every month.
• Gold and above rank distributors must support Tiens branches and the network organize education/training or BBS conference at least twice every month, and share personal experiences and provide trainings as required.
• Honorable rank distributors must actively implement strategies and policies laid down by Tiens, and work hard to expand markets and serve as a role model for distributors to boost the markets.
• To promote to honorable ranks, distributors must achieve the sales criteria specied in the TBP, and abide by the relevant local rules governing industrial and commercial activities.

 Tiens shall, in no way be responsible for any past, current or future liability of the authorized stockiest incurred in his/her individual capacity while conducting business of selling Tianshi Product Range. Distributor shall have a cooling o period of 30 days to cancel the contract and receive refund of any money paid. Distributor will be entitled to seek refund in terms of cooling o period and refund policy of the Tiens. Distributor will also acknowledge that he will not be entitled to claim any refund beyond the period specied in the said policy of the Company.

SECTION IV
PUNISHMENTS ON VIOLATIONS AND MEASURES TO ENSURE CORRECTION THERE OF
(A) PUNISHMENTS ON VIOLATIONS BY DISTRIBUTORS

1. When distributors are found in violation of the provisions of the TPP, Tiens has the right to give punishments to the ending distributor according to Rules Governing Review of Compliance of Distributors.
2. Tiens has the right to decide whether to issue a statement, as a warning, about the violation in the form of notice, circular memo, newsletter on Tiens website, internal journals, E-mails or at meetings; the statement may include, but are not limited to, such information about the oending distributor as name, distributor number, rank, details of violation and punishment.
3. In case a Tiens distributor receives sales rewards in a way violating Tiens rules, Tiens has the right to recalculate, and deduct, and cancel the bonuses and ranks of parties concerned.
4. Punishments on violations are graded on a scale from one to nine, that is, punishments are made according to the grade in which the severity and adverse inuence of the violations falls.
5. Punishment scale：
• Grade 1: warning in writing
• Grade 2: warning in writing and notice issued on Tiens media
• Grade 3: verbal commendations, if due otherwise, will be canceled, with punishments in grade 2 included
• Grade 4: 50% of bonuses deducted for the oending month, with punishments in grade 3 included
• Grade 5: 100% of bonuses deducted for the oending month, with punishments in grade 3 included
• Grade 6: 100% of bonuses deducted for 3 months starting from the oending month, with punishments in grade 3 included
• Grade 7: 100% of bonuses deducted for 6 months starting from the oending month, with punishments in grade 3 included
• Grade 8: 100% of bonuses deducted for 12 months starting from the oending month, with punishments in grade 3 included, and all of the honor rewards canceled for the year
• Grade 9: Tiens distributorship, all bonuses and honor rewards cancelled Grade of punishment are determined solely by Tiens in light of similar past practices and are not open to challenge by distributor.
6. In case distributors, who are major or potential parties involved in a compliance review in progress, apply for modication of some registered information, Tiens has the right to withhold the approval temporarily, and make decisions according to results of the review.
7. Tiens has the right to review the access of distributors under punishment to travel seminars, annual conference or other rewards.
8. In case of intervention of local government departments in cases of violations, Tiens may deal with the case in consideration of their opinions, and decide the grade of punishment according to the adverse inuence of the violation on the local market.
9. Even if Tiens has not been held responsible certain case of TPP violation or negligence, it does not mean that Tiens won’t pursue the responsibilities of the same violations by other distributors.

1. Distributors may lodge a complaint within 6 months of the infringement of his/her rights (violation of rules).
2. In case distributor made an overdue complaint against any violations, Tiens has the right to refuse acceptance of the case.
3. Any distributor who wishes to lodge a complaint must ll out the Form Distributor Complaint against Network Disputes, and submit written complaint documents signed by the complaining distributor, with the original and a copy of the distributor’s ID and distributorship card attached.
4. Distributors may complaint through Tiens branches. Having done so, the distributor must refrain from leaving the registered address as much as possible and keep in touch with Tiens, accept enquiries/investigation and give further support materials as required.
5. Upon receiving and accepting the complaint from Tiens distributor, Tiens will start the investigation within prescribed time. During the process, the complaining distributor and the alleged oending distributor must actively work with Tiens. Tiens reserves the right to freeze the bonuses of the distributors concerned.
6. During the investigation, Tiens will take necessary measures to collect evidence as it thinks t.
7. Tiens will handle the complaint according to Tiens rules and results from investigation, evidence collection and mediation, and notify both the complaining distributor and alleged oending distributor of its decisions.
8. The complaining distributor may appeal to Tiens for review of the case within 10 working days of the notication, with supplement of new evidences; when the 10-day period expires, it will be construed that distributors have accepted the decisions.
9. Upon receiving the appeal and new evidence, the CHQ will launch a review of the decisions on the case.
10. The decisions made by Tiens in light of the new evidences in the review process will be nal, and the appealing distributor must accept same and may not renew his/her appeal.
11. Nothing in this shall prevent Tiens from taking suo-moto cognizance of any wrongful act of the distributor in violating TPP and take suitable action and give punishment as per Grade described above.

1. If Tiens believes that within the network of a leading distributor, one or more distributor misrepresents the TBP, or seriously violates the TPP, Tiens may take MEC against all or part of the members of the network.
2. Before taking MEC, Tiens will inform the distributors of the reasons to ensure that they are aware of the necessity of the action.
3.  When Tiens informs the distributors according to rules, they are permitted to make a statement about the whole incident, and make an investigation in his/her network within a prescribed period.
4. Distributors who have been subject to MEC should nish a thorough retraining to learn how to correctly represent and implement the TBP, and educate other distributors within the network. The retraining sessions will be hosted by leading distributor or other designated distributors under the supervision of Tiens.
5. The leading distributor or other designated distributors must submit retraining sessions’ agenda, which should contain date, time, venue, expected number of attendees and names of lecturers of the TBP.
6. During the retraining sessions, each attending distributor must sign in on attendance form, which should be submitted Tiens by the leading distributor or other designated distributors.
7. Tiens may delegate representatives to attend the retraining sessions, in order to keep informed about the proceedings and place special emphasis on the essential part of the TBP; the representatives may host the sessions instead of the original hosts when necessary.
8. If the distributor or relevant sponsors are slow or even fail to take proper and eective measures within the prescribed period, Tiens has the right to take further actions against them.