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Effective October 1, 2003

 

Tianshi Compensation Plan

Philippines

GLOSSARY

 GLOSSARY OF TERMS USED IN PLAN

AUTO SHIP:

The Auto-Ship plan provides for products to be automatically shipped and billed against a checking account or savings account in order to assure qualifications for commissions.

BUSINESS VALUE (BV):

This is the value the Company assigns to each product and calculates Consultants bonus and status.  Here 1BV=1USD

CONSULTANT (INDEPENDENT CONSULTANT OR IC):

Any legal citizen, who is introduced by a Sponsor to Tianshi Health Products Inc., purchases a Tianshi Sales Kit, submits a completed Application to the Company and becomes a Tianshi Independent Consultant after authorization by the Company.

COMPENSATION PLAN:

(Sometimes called the Marketing Plan)  How Tianshi pays its ICs.

CUMULATIVE BV (CBV):

The CBV consists of three components:  The first is the Personal BV that does not exceed 250BV; 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 250 BV; the second is Personal BV of that Consultant that exceeds 250 BV.

DIRECT NETWORK:

The Independent Consultants network generated through the sponsoring by any one of the Direct downlines (the said network also includes this Direct Downline).

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 are called downline.

GENERATION BONUS:

This bonus is earned on the PGBV of a Consultant with the same Status level as yours.  At a qualified rank of 5-star IC or higher you will be eligible to earn a generation bonus based on the entire Personal Group Bonus Volume of the first IC in every downline leg that is also qualified at the same title as yours or higher.  As you personally advance in rank, you will be eligible for additional generational bonuses.

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 down-line distributors in the same month.

HONORED BONUS:

The company sets aside 5% of its global turnover, which is divided among Consultants who have Honored 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 250 BV; the second is the Personal BV of all the Indirect Downlines of that Consultant.

INTERNATIONAL INDPENDENT CONSULTANT

An Independent Consultant with the Status of International Independent Consultant which allows the IC to sponsor other ICs and customers in other countries besides their country of residence.

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.

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 Tianshi Identification Number in a particular month.

PERSONAL GROUP BUSINESS VOLUME (PGBV):

The total of your personal organizations sales volume used for calculation of bonuses at the Generation Bonus level of the plan.  As an 8-star Consultant, the PGBV is calculated by combining your personal sales (PBV) with the sales volume created by all Downline members below the 8-Star rank and only between you and the next IC who has reached the level on 8-Star Consultant.

RETAIL PROFIT:

The margin between the price at which a Consultant purchases the products (Consultant Price) and the price at which these products are being sold (Retail Price).

SAME STATUS CONSULTANT (SSC):

A consultant in your downline with the same status as yours.

SPONSOR:

A person who recruits another Independent Consultant into his/her organization and who is responsible to help that new person until he is trained well enough to work on his own.  No money is ever paid for the act of recruiting or sponsoring an Independent Consultant.

TOTAL NETWORK BV (TNBV):

The total BV generated by a Consultants network in a particular month.

UPLINE:

Person who is your sponsor, and their sponsor, and their sponsor, etc.

COMPENSATION PLAN

Note:

     The company considers the 25th of each month as the last day of a fiscal month, therefore the entire BV earned during the moth will be calculated till the 25th of each month (25th included).  Whilst the BV earned after the 25th will be calculated and preceded in the following fiscal month.

     Any Tianshi consultant, regardless of his/her status, is entitled to earn the retail profit by selling Tianshi products and to introduce new consultants.  The leadership bonus of 5-star to 8-star consultants will be allotted by the company directly.  The 50 BV for Autoship Program will not take part in the direct bonus and indirect bonus allotment.

A. RANKS

1-Star Consultant:

This is the first rank of Independent Consultant in the Tianshi Compensation Plan.

Qualification Requirements:

Any person who is introduced by a qualified Sponsor to Tianshi Philippines, Inc., purchases a Tianshi Sales Kit and then becomes a Tianshi Independent Consultant after authorization by the Company.

Maintenance Requirements to be Paid As & Benefits.

As a 1-Star Consultant you can purchase Tianshi products at distributor price, get retail profit and sponsor others into Tianshi organization.

2-Star Consultant:

This is the second rank of Independent Consultant in the Tianshi Compensation Plan.

Qualification Requirements:

1-Star Consultant that makes a one-time purchase of products from the company of 60 BV or more becomes a 2-Star Consultant from the month in which the qualification is achieved.

Maintenance Requirements to be Paid As & Benefits.

As a 2-Star Consultant you will receive 5% of your DBV as a Direct Bonus.

3-Star Consultant:

This is the third rank of Independent Consultant.

Qualification Requirements:

Option 1:  1 star or 2 star consultant whose cumulative purchase of products from the Company reaches 250 BV or more advances to 3-Star Consultant from the month in which the qualification is achieved.

Option 2:  Any new consultant that makes a one-time purchase of products from the company of 250 BV or more becomes a 3 star consultant from the month in which the qualification is achieved.

Maintenance Requirements to be Paid As & Benefits.

If your PBV reaches or exceeds 100BV or Autoship 50 BV, you will receive 20% of your DBV as a Direct Bonus as well as the corresponding Indirect Bonus.  (Earn up to 15% on the GBV of your personally enrolled 2-Star Consultant)

4-Star Consultant:

This is the fourth rank of Independent Consultant.

Qualification Requirements:

Option 1:  Any 3-Star Consultant who has at least three direct networks, with a 3-Star Consultant in each network, and the CBV of his/her total network reaches 1300 BV or more advances to a 4-Star Consultant.

Option 2:  Any 3-Star Consultant who has at least two direct networks, with a 3-Star Consultant in each network, and the CBV of his/her total network reaches 2600 BV or more advances to a 4-Star.

Option 3: Any 3-star consultant whose cumulative purchase of products from the company reaches 1000BV or more advances to 4-star consultant from the month in which the qualification is achieved.

Maintenance Requirements to Paid As & Benefits.

If your PBV reaches or exceeds 100 BV or Autoship  50 BV, you will receive 24% of your DBV as a Direct Bonus as well as the corresponding Indirect Bonus.  (Earn up to 19% on 2-Star Consultant and up to 4% on 3-Star Consultant).

5-Star Consultant:

This is the fifth rank of Independent Consultant.

Qualification Requirements:

Option 1:  Any 3-Star Consultant or above who has at least three direct networks, with a 4-Star Consultant in each network, and the CBV of his/her total network reaches 5,000 BV or more advances to a 5-Star Consultant.

Option 2: Any 3-Star Consultant or above who has at least two direct networks, with a 4-Star Consultant in each network, and the CBV of his/her total network reaches 10,000 BV or more.

Maintenance Requirements to be Paid As & Benefits.

Firstly, if your PBV reaches or exceeds 100 BV or Auto-ship 50 BV, as a 5-Star Consultant you will receive 28% of your DBV as a Direct Bonus as well as the corresponding Indirect Bonus.  (Earn up to 23% on the GBV of 2-Star Consultant, up to 8% on the GBV of 3-Star Consultant, and up to 4% on the GBV of 4-Star Consultant.) 

Secondly, you will receive a Generation Bonus, which is 1% of the GBV of your first level SSD, on the condition that your GBV reaches 500 BV or more, if you have been promoted by Option 1 or 2.

6-Star Consultant:

This is the sixth rank of Independent Consultant.

Qualification Requirements:

Option 1:  Any 3-Star Consultant or above who has at least three direct networks, with a 5-Star Consultant in each network, and the CBV of his/her total network reaches 20,000 BV or more advances to a 6-Star Consultant.

Option 2:  Any 3-Star Consultant or above who has at least two direct networks, with a 5-Star Consultant in each network, and CBV of his/her total network reaches 40,000 BV or more advances to a 6-Star Consultant.

Maintenance Requirements to be Paid As & Benefits.

(1)Firstly, if your PBV reaches or exceeds 100 BV or Auto-Ship 50 BV, as a 6-Star Consultant you will receive 32% of your DBV as a Direct Bonus as well as the corresponding Indirect Bonus.  (Earn up to 27% on the GBV of 2-Star Consultant, up to 12% on the GBV of 3-Star Consultant, up to 8% on the GBV of 4-Star Consultant and up to 4% on the GBV of 5-Star Consultant).

(2)Secondly, you will receive a Generation Bonus which is 1% of the GBV of your first level SSD, 0.5% of the GBV of your second level SSD on the condition that your GBV reaches 800 BV or more, if you have bee promoted by Option 1 or 2.

7-Star Consultant:

This is the seventh rank of Independent Consultant.

Qualification Requirements:

Option 1: Any 3-Star Consultant or above who has at least three direct networks, with a 6-Star Consultant in each network, and the CBV of his/her total network reaches 80,000 BV or more advances to a 7-Star Consultant at the beginning of the month following the qualification.

Option 2:  Any 3-Star Consultant or above who has at least two direct networks, with a 6-Star Consultant in each network, and the CBV of his/her total network reaches 160,000 BV or more advances to a 7-Star Consultant at the beginning of the month following the qualification.

Maintenance Requirements to be Paid As & Benefits.

(1)Firstly, if your PBV reaches or exceeds 100 BV or Auto-ship 50 BV, as a 7-Star Consultant you will receive 36% of your DBV as a Direct Bonus as well as the corresponding Indirect Bonus.  (Earn up to 31% on the GBV of 2-Star Consultant, up to 16% on the GBV of 3-Star Consultant, up to 12% on the GBV of 4-Star Consultant, up to 8% on the GBV of 5-Star Consultant, and up to 4% on the GVB of 6-Star Consultant.)

(2)Secondly, you will receive Generation Bonus, which is 1% of the GBV of your first level SSD, 0.5% on the GBV of your second, 0.5% of the GBV of your third level SSD on the condition that your GBV reaches 1,600 BV or more, if you have been promoted by Option 1 or 2.

8-Star Consultant:

This is the eight rank of Independent Consultant.

Qualification Requirements:

Option 1:  Any 3-Star Consultant or above who has at least three direct networks, with a 7-Star Consultant in each network or will be advancing to a 7-Star Consultant in the next month, and the CBV of his/her total network reaches 320,000 BV or more advances to an 8-Star Consultant.

Option 2:  Any 3-Star Consultant or above who has at least two direct networks, with a 7-Star Consultant in each network or will be advancing to a 7-Star Consultant in the next month, and the CBV of his/her total network reaches 640,00 BV or more advances to an 8-Star Consultant.

Maintenance Requirements to Paid As & Benefits.

(1)Firstly, if your PBV reaches or exceeds 100 BV or Auto-ship 50 BV, as an 8-Star Consultant you will receive 40% of your DBV as Direct Bonus as well as the corresponding Indirect Bonus.  (Earn up to 35% on the GBV of 2-Star Consultant, up to 20% on the GVB of 3-Star Consultant, up to 16% on the GBV of 4-Star Consultant, up to 12% on the GBV of 5-Star Consultant, up to 8% on the GBV of 6-Star Consultant, and up to 4% on the GBV of 7-Star Consultant.)

(2)Secondly, you will receive a Generation Bonus, which is 1% of the GBV of your first level SSD, 1% of the GBV of your second, 0.5% of the GBV of your third, 0.5% of the GBV of your fourth, 0.5% of the GBV of your fifth level SSD on the condition that your GBV reaches 2,500 BV or more, if you have been promoted by Option 1 or 2.

HONORED TITLES

 The company sets aside 5% of its global turnover as the Honored Bonus.

The Honored Bonus will be restricted to Consultants attaining the status level of Bronze Lion or higher.

1.  Bronze Lion Consultant

Qualification:

Any Consultant having at least two direct networks, with an 8-Star Consultant in each network.

Benefits and Conditions:

Firstly, if your PBV reaches or exceeds 100 BV or Auto-ship 50 BV, as a Bronze Lion Consultant you will receive 40% of your DBV as a Direct Bonus as well as the corresponding Indirect Bonus.

Secondly, you will receive a Generation Bonus, which is 1% of the GBV of your first level SSD. 1% of the GBV of your second, 0.5% of the GBV of your third, 0.5% of the GBV our fourth, 0.5% of the GBV of your fifth level SSD on the condition that your GBV reaches 2500 BV or more, if you have promoted by Option 1 or 2.

Thirdly, you will receive the Bronze Lion Honored Bonus, which is 20% of the Honored Bonus shared among all the Bronze Lion Consultants, on the condition that your GBV reaches 2500 BV or more.

2.  Silver Lion Consultant

Qualification:

Any Consultant having at least three direct networks, with an 8-Star Consultant in each network.

Benefits and Conditions:

Firstly, if your PBV reaches or exceeds 100 BV or Auto-ship 50 BV, as a Silver Lion Consultant you will receive 40% of your DBV as a Direct Bonus as well as the corresponding Indirect Bonus.

Secondly, you will receive a Generation Bonus, which is 1% of the GBV of your first level SSD, 1% of the GBV of your second, 0.5% of the GBV of your third, 0.5% of the GBV for your fourth, 0.5% of the GBV of your fifth level SSD on the condition that your GBV reaches 2500 BV or more, if you have been promoted by Option 1 or 2.

Thirdly, you will receive the Silver Lion Honored Bonus, which is 15% of the Honored Bonus shared among all the Silver Lion Consultants, on the condition that your GBV reaches 1600 BV or more.

3. Gold Lion Consultant

Qualification:

Any Consultant having at least four direct networks, with an 8-Star Consultant in each network.

Benefits and Conditions:

Firstly, if your PBV reaches or exceeds 100 BV or Auto-ship 50 BV, as Gold Lion Consultant you will receive 40% of your DBV as a Direct Bonus as well as the corresponding Indirect Bonus.

Secondly, you will receive a Generation Bonus, which is 1% of the GBV of your first level SSD, 1% of the GBV of your second, 0.5% of the GBV of your third, 0.5% of the GBV of your fourth, 0.5% of the GBV of your fifth level SSD on the condition that your GBV reaches 2500 BV or more, if you have been promoted by Option 1 or 2.

Thirdly, you will receive the Gold Lion Honored Bonus, which is 10% of the Honored Bonus shared among all the Gold Lion Consultants, on the condition that your GBV reaches 800 BV or more.

4.  1-Star Gold Lion Consultant

Qualification:

Any Consultant having at least five direct networks, with an 8-Star Consultant in each network.

Benefits and Conditions:

Firstly, if your PBV reaches or exceeds 100 BV or Auto-ship 50 BV, as a 1-Star Gold Lion Consultant you will receive 40% of DBV as a Direct Bonus as well as the corresponding Indirect Bonus.

Secondly, you will receive a Generation Bonus, which is 1% of the GBV of your first level SSD, 1% of the GBV or your second, 0.5% of the GBV of your third, 0.5% of the GBV of your fourth, 0.5% of the GBV of your fifth level SSD on the condition that your GBV reaches 2500 BV or more, if your have been promoted by Option 1 or 2.

Thirdly, you will receive the 1-Star Gold Lion Honored Bonus, which is 10% of the Honored Bonus shared among all the 1-Star Gold Lion Consultants, on the condition that five of your direct networks have an 8-Star Consultant  each and the TNBV of each of these 8-Star Consultants reaches 20,000 BV or more.

5.  2-Star Gold Lion Consultant

Qualification:

Any Consultant having at least six direct networks, with an 8-Star Consultant in each network.

Benefits and Conditions:

Firstly, if your PBV reaches or exceeds 100 BV or Auto-ship 50 BV, as a 2-Star Gold Lion Consultant you will receive 40% of your DBV as a Direct Bonus as well as the corresponding Indirect Bonus.

Secondly, you will receive a Generation Bonus, which is 1% of the GVB of your first level SSD, 1% of the GBV or your second, 0.5% of the GBV of your third, 0.5% of the GBV of your fourth, 0.5% of the GBV of your fifth level SSD on the condition that your GBV reaches 2500 BV or more, if you have been promoted by Option 1 or 2.

Thirdly, you will receive the 2-Star Gold Lion Honored Bonus, which is 10% of the Honored Bonus shared among all the 2-Star Gold Lion Consultants, on the condition that six of your direct networks have an 8-Star Consultant each and the TNBV of each of these 8-Star Consultants reaches 20,000 BV or more.

6.  3-Star Gold Lion Consultant

Qualification:

Any Consultant having at least seven direct networks, with an 8-Star Consultant in each.

Benefits and Conditions:

Firstly, if your PBV reaches or exceeds 100 BV or Auto-ship 50 BV, as a 3-Star Gold Lion Consultant you will receive 40% of your DBV as a Direct Bonus as well as the corresponding Indirect Bonus.

Secondly, you will receive a Generation Bonus, which is 1% of the GBV of your first level SSD, 1% of the GBV of your second, 0.5% of the GBV of your third, 0.5% of the GBV of your fourth, 0.5% of the GBV of your fifth level SSD on the condition that your GBV reaches 2500 BV or more, if you have been promoted by Option 1 or 2.

Thirdly, you will receive the 3-Star Gold Lion Honored Bonus, which is 10% of the Honored Bonus shared among all the 3-Star Gold Lion Consultants, on the condition that seven of your direct networks have an 8-Star Consultant each and the TNBV of each of these 8-Star Consultants reaches 20,000 BV or more.

7.  4-Star Gold Lion Consultant

Qualification:

Any Consultant having at least eight direct networks, with an 8-Star Consultant in each.

Benefits and Conditions:

Firstly, if your PBV reaches or exceeds 100 BV or Auto-ship 50 BV, as a 4-Star Gold Lion Consultant you will receive 40% of your DBV as a Direct Bonus as well as the corresponding Indirect Bonus.

Secondly, you will receive a Generation Bonus, which is 1% of the GBV of your first level SSD, 1% of the GBV of your second, 0.5% of the GBV of your third, 0.5% of the GBV of your fourth, 0.5% of the GBV of your fifth level SSD on the condition that your GBV reaches 2500 BV or more, if you have been promoted by Option 1 or 2.

Thirdly, you will receive the 4-Star Gold Lion Honored Bonus, which is 10% of the Honored Bonus shared among all the 4-Star Gold Lion Consultants, on the condition that eight of your direct network have an 8-Star Consultant each and the TNBV of each of these 8-Star Consultants reaches 20,000 BV or more.

8.  5-Star Gold Lion Consultant

Qualification:

Any Consultant having at least ten direct networks, with an 8-Star Consultant in each.

Benefits and Conditions:

Firstly, if your PBV reaches or exceeds 100 BV or Auto-ship 50 BV, as a 5-Star Gold Lion Consultant you will receive 40% of your DBV as a Direct Bonus as well as the corresponding Indirect Bonus.

Secondly, you will receive a Generation Bonus, which is 1% of the GBV of your first level SSD, 1% of the GBV of your second, 0.5% of the GBV of your third, 0.5% of the GBV of your fourth, 0.5% of the GBV or your fifth level SSD on the condition that your GBV reaches 2500 BV or more, if you have been promoted by Option 1 or 2.

Thirdly, you will receive the 5-Star Gold Lion Honored Bonus, which is 10% of the Honored Bonus shared among all the 5-Star Gold Lion Consultants, on the condition that ten of your direct networks have an 8-Star Consultant each and the TNBV of each of these 8-Star Consultants reaches 20,000 BV or more.

9.  Honored Director Consultant

Qualification:
Any Consultant having at least four direct networks with a Gold Lion Consultant in each network.

Benefits and Conditions:

Firstly, if your PBV reaches or exceeds 100 BV or Auto-ship 50 BV, as a 1-Star Gold Consultant you will receive 40% of your DBV as a Direct Bonus as well as the corresponding Indirect Bonus.

Secondly, you will receive a Generation Bonus, which is 1% of the GBV of your first level SSD, 1% of the GBV of your second, 0.5% of the GBV of your third, 0.5% of the GBV of your fourth, 0.5% of the GBV or your fifth level SSD on the condition that your GBV reaches 2500 BV or more, if you have been promoted by Option 1 or 2.

Thirdly, you will receive the Honored Director Consultant Bonus, which is 5% of the Honored Bonus shared among all the Honored Director Consultants, on the condition that four of your direct networks have a Gold Lion Consultant each and the TNBV of each of these 8-Star Consultants reaches 80,000 BV or more.

 AUTOSHIP PROGRAM

 Qualification:

Any Tianshi Philippines Independent Consultants have applied for the monthly 50BV Autoship program.

Benefits:

You can take qualified 7-generation level bonus from your downlines who have participated in this Autoship Program, and the company takes 40% and allots them in the seven levels (see the following table).

 

Generation

Autoship

Percentage

1

50BV

1%

2

50BV

8%

3

50BV

10%

4

50BV

5%

5

50BV

3%

6

50BV

3%

7

50BV

10%

Remarks:

1.  You can participate in the Autoship program to maintain your monthly PBV.  If you do not participate in the Autoship program, your PBV is still 100BV.

2.  The Autoship 50Bv will be allotted in seven levels.  For the portion of monthly PBV that is over 50 BV, you could take direct bonus and indirect bonus in accordance with your level.

   SPECIAL AWARDS

 The company will issue Special Rewards to outstanding Consultants chosen from qualified candidates each fiscal year.  The following is a list of examples of the types of rewards included in this category:

A) Tour Reward:  The company awards a one time, all expenses paid tour to selected Consultants who have attained the Status of Bronze Lion or higher and won the Bronze Line Honored Bonus in six months (include three consecutive months) of a fiscal year.

B) Car Reward:  Selected Consultants who have attained the Status of Silver Lion or higher and won the Silver Lion Honored Bonus in six months (include three consecutive months) of a fiscal year will receive a well-known brand new car as one-time reward from the company.

C) Luxury Cruise Reward:  Selected Consultants who have attained the Status of Gold Lion or higher and won the Gold Lion Honored Bonus in six months (include three consecutive months) of a fiscal year will receive a luxury cruise is one-time reward from the company.

d) Private Plane Reward:  Selected Consultants who have attained the Status of Five Star Gold Lion or higher and won the Five Star Gold Lion Honored Bonus in six months (include three consecutive months) of a fiscal year will receive a private plane as a one-time reward from the company.

E) Luxury House Reward:  Selected Consultants who have attained the Status of Honored Director and won the Honored Director Honored Bonus in six months (include three consecutive months) will receive a luxury house as a one-time reward from the company.

Note:

Tianshi Philippines, Inc. reserves the right to revise, adjust and interpret the Compensation Plan.

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