Glossary of Terms Used in TIENS Plan

AUTOSHIP: The Autoship plan provides for products to be automatically shipped and debited against a credit card in order to ensure that customers do not run out of product and that qualify cations for commissions are met.

BUSINESS VALUE (BV): This is the value the Company assigns to each product and is used to calculate the Consultants’ bonus and status. Here, 1BV = US$1

CONSULTANT (INDEPENDENT CONSULTANT OR 1C): Any legal resident who is introduced by a Sponsor to Tiens., purchases Tiens Business Kit, submits a completed Application to the Company and becomes a Tiens Independent Consultant after authorization by

the Company.

COMPENSATION PLAN: (Sometimes called the Marketing Plan) How Tiens pays its IC’s.

CUMULATIVE BV (CBV): The CBV consists of three components: The first is the Personal BV that does not exceed 300BV; the second is the cumulative Direct BV; the third is the cumulative Indirect BV.

DIRECT: Refers to an Independent Consultant that you have personally sponsored into the business and is on your first level of your down-line.

DIRECT BONUS: The bonus a Consultant receives on his/her DBV in a particular month.

DIRECT BV (DBV): The DBV consists of two components (both in a specific month): The first is the Personal BV of all the Direct Downlines of a Consultant that does not exceed 300BV; the second is Personal BV of that Consultant that exceeds 300BV.

DIRECT NETWORK: The Independent Consultant’s network generated through the sponsoring by any one of the Direct Downlines (the said network also includes this Direct Downline).

TIENS COMPENSATION PLAN

DOWNLINE: Those people directly sponsored by an Independent Consultant, plus the people that Independent Consultant sponsors (indirect), etc., down the number of levels indicated in the Compensation Plan is called the Downline.

GROUP BV (GBV): The difference between the total network BV of a Distributor generated in a particular month and the total network BV generated by his/her same and higher status Downline distributors in the same month.

HONOURED BONUS: The Company sets aside 5% of its global turnover, which is divided among Consultants who have Honoured Titles.

INDIRECT: See Downline... All those in your Downline but not directly sponsored by you.

INDIRECT BONUS: The bonus a Consultant receives on his, her IBV in a particular month.

INDIRECT BV (IBV): The IBV consists of two components (both in a specific month): The first is the Personal BV of all the Direct Down lines of a Consultant that exceeds 300BV; the second is the Personal BV of all the Indirect Downlines of that Consultant.

INTERNATIONAL INDEPENDENT CONSULTANT: An Independent Consultant with the Status of

International Independent Consultant which allows the 1C to sponsor other IC’s and customers in other countries besides their country of residence.

LEADERSHIP BONUS:

(Also known as Generation Bonus). This bonus is earned on the PGBV of a Consultant with the same Status level as you. At a qualified rank of 5-Star 1C or higher you will be eligible to earn a Leadership Bonus based on the entire Personal Group Bonus Volume of the first 1C in every Downline leg that is also qualified at your same title. As you personally advance in rank, you can become eligible for additional Leadership Bonuses.

TIENS COMPENSATION PLAN

LEG: Each personally sponsored Independent Consultant on your first level is part of your total Downline and is a separate “leg.” You and your entire organization (Downline) are one “leg” to your sponsor.

LEVEL: The people you personally sponsor are your first level. The ones they sponsor are your second level. The ones your second level sponsors are your third level, etc. However you can place new ICs you introduce at any level you choose within your Downline.

MARKETING PLAN: In MLM this is also known as the compensation plan. It is a specifically designed method of paying commissions for selling the company’s products or services and for receiving bonuses on the sales of those individuals that are directly and indirectly sponsored and

trained that are a part of your Downline. It is usually depicted in a graphic manner in a promotional brochure and in detail in the company Independent Consultant manual.

MLM: The standard abbreviation for Multi-Level Marketing MULTI-LEVEL MARKETING: A non-storefront type of distribution where a manufacturer, or its representative (an MLM Company), sells directly to the consumer through Independent Consultants rather than through conventional retail outlets. This is an industry that is growing at a rapid rate, with sales in Australia around two billion dollars. Independent Consultants multiply themselves directly and indirectly by sponsoring others into the business who create retail sales volume and are paid bonuses in depth accordingly on multiple levels.

NETWORK MARKETING: Another name for Multi Level Marketing.

ORGANIZATION: The combined total of Independent Consultants in your Downline.

PERSONAL BV (PBV): The total BV of the products purchased directly from the company by a Consultant with his/her own Tiens Identification Number in a particular month.

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