Introduction
2. 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.
3. 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.
4. The CHQ reserves the right to revise and explain the provisions of the TPP from time to time.
Section I
Definition of Terms Used
1. Tiens
Tiens refers to Tiens Group and all the subsidiaries it sets up globally under the name of Tiens or Tianshi.
2. CHQ
CHQ refers to Tiens Head Offices established at No.18 Xinyuan Road, Wuqing Development Area, New-Tech Industrial Park, Tianjin, China.
3. Tiens Distributorship
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.
4. Tiens Distributor Business Plan
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.
5. Sponsorship
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.
6. TPP
The TPP is part of Tiens Business Plan.
7. Tiens Products
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.
8. Tiens One Body Multipile Wings business conglomeration
Tiens new One Body Multiple Wings strategy refers to the development of new tourism, new education, new media, and new hotel business based on the new cross-border model, with global cross-border new direct sales business ( in oversea market ) and new e-commerce as the dual core business segments.
The new global cross-border direct sales business model ( in oversea market) realizes the model of joining in one country and enjoying global benefits through the innovative mechanism model, and the realization of a global income network to achieve innovative incentive benefits.
The new e-commerce business model, by promoting the socialization of e-commerce, focuses on the cross-border purchase of social rigid demand products, and builds a new global cross-border membership e-commerce model based on the new cross-border operation system.
The new tourism, with All Legend Travel Holding Group as the main body, relying on the new direct sales, new e-commerce network system and membership base covering the world to innovate mechanism models, and transforming traditional tourism into dedicated new tourism with new thinking and methods.
The new education relies on the strong strength of the group for more than 20 years of social training and higher education, numerous resources and management experience, integrates advantageous resources, integrates the elements of the times, and builds an education holding group covering the world to promote each other and develop together with other business sectors.
The new media is creating media cooperation alliances, building a global media convergence alliance making full use of global self-media resources and sharing the world flow, through the establishment of "headlines for consumers" development models, and with the focus on "new media" .
The new hotel business, relying on All Legend Hotel Group, on the basis of creating a boutique model, accelerates the global expansion of the business layout, and builds a global hotel industry alliance.
Section II
Tiens Distributorship
1) Any adult citizens 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.x. 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 when relevant reasons occur.
5) Tiens distributorship comprises of the eligibility, rank, rights, obligations and responsibilities of Tiens distributors. Tiens distributor number is the only way to identify a Tiens distributor; in other words, each distributorship corresponds to one single Tiens distributor number.
6) On the basis of complying with local laws and regulations, Tiens distributors can have three distributor spots. These three spots must be in real name and in the same sales team network. The distributors shall bear all legal responsibilities for the rights and obligations arising from the use of the three distributor spots.
7) It’s not permitted to transfer or sell Tiens distributorship without authorization. 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 born by the offender.
8) A Tiens distributor is not permitted to be in the direct-selling business of any other company other than Tiens, or to engage in any other direct-selling activities other than those organized by Tiens. Otherwise, Tiens is entitled to refuse to recognize and to cancel the offender’s Tiens distributorship.
9) Tiens reserves the right to accept or reject the application of any person for Tiens distributorship.
10) Validity and renewal of Tiens Distributorship:
a. A Tiens distributorship is valid from date when the distributorship id granted, and expires on the last day of the 12th business month.
b. Tiens distributors must perform required procedures for renewal before their distributorship expires.
c. In case of failure to renew the distributorship within the valid period, or that Tiens rejects application for renewal within or without the valid period, the Tiens distributorship becomes invalid.
d. 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.
e. For Tiens distributors who fail to renew within the valid period, it’s necessary to follow these rules to rejoin Tiens: distributors whose distributorship being disqualified can apply for Tiens distributorship in the next month following the disqualifying.
2. Procedures to apply for Tiens distributorship
1) Those who wish to apply for Tiens distributorship must be recommended by authorized Tiens distributor.
2) The applicant shall confirm that he has read the TPP and has completely understood all contents of the Tiens Business Starter Kit 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 filling up. Tiens distributorship number will be issued upon approval from Tiens, whereby the applicant can become a Tiens distributor.
4) According to the time sequence of an applicant’s submission of Tiens Distributor Agreements, Tiens will recognize the very first distributorship received as the distributor’s first distributorship (main distributorship).
5) After such distributor obtains his/her main distributorship successfully, he/she may intend to apply for second and third distributor spot (affiliated distributorship). If the distributor intends to apply for more distributorship (affiliated distributorship), such distributor should present the main distributor number for the approval on his affiliated distributorship. In case that the distributor is providing false information on the main distributorship, which is resulting in the conflict of interest in the line of sponsorship, the Tiens company has the right to cancel the second and third distributor spots.
6) The information the applicant gives should be true and valid; it’s 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 liabilities (including instantly terminating the Tiens distributorship).
3. Rules regarding Tiens distributorship for spouses
1) When a legitimate couple applies to join Tiens:
a. 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 falls fowl of it, the other one must take the same responsibility.
b. 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 the approval by Tiens.
c. The husband and wife are allowed to be in the same network, and either of them is permitted to have their own Tiens distributorship, provided that all their distributorship are in the same team network and that the information has been reported to Tiens. If the spouse intend to register as one distributorship to build Tiens business together, either of them should relinquish all his/her distributorships, and build the other’s Tiens distributorship as spouse together.
2) If two Tiens distributors get married, either they can retain both their original Tiens distributorships, or either of them can relinquish all his/her distributorships to build the other’s Tiens distributorship as spouse together.
3) Neither of the couple shall conduct any violations in the name of his/her spouse who does not have Tiens distributorship. Once confirmed, Tiens will affix the responsibilities against the one with Tiens distributorship.
4) When divorce occurs between a couple who possess a single Tiens distributorship, the following regulations shall be complied with:
a. 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.
b. 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.
4. 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 all the Tiens distributorships of the deceased 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 relinquish his/her own distributorships to receive and inherit the deceased distributor’s distributorships.
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 Tiens 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, or unable to continue the business due to career change, 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 (parents, children, couple or siblings) eligible for Tiens distributorship, so as to pass on all his/her 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 relinquish his/her own distributorships so as to receive all the distributorships of his/her direct relative.
5. Termination and Re-Application of Tiens Distributorship
1) Termination of Tiens Distributorship means Tiens terminates all the contracts it reached with the concerned Tiens distributor. From the date of issuance of the termination notice, the terminated Tiens distributor will immediately lose all his Tiens Distributorship, rights and interests, including the bonuses generated from the concerned Tiens Distributorship.
2) Under following circumstances, a Tiens distributor (including one of the couple) will be notified by letter from Tiens to make necessary corrections. These include, but no limited to, monitoring and disciplining measures and termination of Tiens distributorship:
a. Providing false information in the Tiens Distributor Agreement (including non-original signature).
b. Distributors are found to have seriously violated the TPP.
c. Distributors who have violated the minor rules in the TPP fail to correct after receiving correction notice from Tiens.
d. Those who violate the laws or have been sentenced to be imprisoned.
3) When a Tiens distributorship is terminated, the former distributor loses all his/her position in the network, including, but not limiting to, bonus ranks and eligibility.
4) 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.
5) Where Tiens distributorship is compulsorily terminated, the former-distributor is not permitted to re-apply for approval until twelve months after the termination.
Section III
Rights & Interests and Responsibilities of Tiens Distributorship
1. Tiens
Tiens refers to Tiens Group and all the subsidiaries it sets up globally under the name of Tiens or Tianshi.
2. CHQ
CHQ refers to Tiens Head Offices established at No.18 Xinyuan Road, Wuqing Development Area, New-Tech Industrial Park, Tianjin, China.
3. Tiens Distributorship
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.
4. Tiens Distributor Business Plan
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.
5. Sponsorship
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.
6. TPP
The TPP is part of Tiens Business Plan.
7. Tiens Products
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.
8. Tiens One Body Multipile Wings business conglomeration
Tiens new One Body Multiple Wings strategy refers to the development of new tourism, new education, new media, and new hotel business based on the new cross-border model, with global cross-border new direct sales business ( in oversea market ) and new e-commerce as the dual core business segments.
The new global cross-border direct sales business model ( in oversea market) realizes the model of joining in one country and enjoying global benefits through the innovative mechanism model, and the realization of a global income network to achieve innovative incentive benefits.
The new e-commerce business model, by promoting the socialization of e-commerce, focuses on the cross-border purchase of social rigid demand products, and builds a new global cross-border membership e-commerce model based on the new cross-border operation system.
The new tourism, with All Legend Travel Holding Group as the main body, relying on the new direct sales, new e-commerce network system and membership base covering the world to innovate mechanism models, and transforming traditional tourism into dedicated new tourism with new thinking and methods.
The new education relies on the strong strength of the group for more than 20 years of social training and higher education, numerous resources and management experience, integrates advantageous resources, integrates the elements of the times, and builds an education holding group covering the world to promote each other and develop together with other business sectors.
The new media is creating media cooperation alliances, building a global media convergence alliance making full use of global self-media resources and sharing the world flow, through the establishment of "headlines for consumers" development models, and with the focus on "new media" .
The new hotel business, relying on All Legend Hotel Group, on the basis of creating a boutique model, accelerates the global expansion of the business layout, and builds a global hotel industry alliance.
Section I
Definition of Terms Used
1. Tiens
Tiens refers to Tiens Group and all the subsidiaries it sets up globally under the name of Tiens or Tianshi.
2. CHQ
CHQ refers to Tiens Head Offices established at No.18 Xinyuan Road, Wuqing Development Area, New-Tech Industrial Park, Tianjin, China.
3. Tiens Distributorship
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.
4. Tiens Distributor Business Plan
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.
5. Sponsorship
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.
6. TPP
The TPP is part of Tiens Business Plan.
7. Tiens Products
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.
8. Tiens One Body Multipile Wings business conglomeration
Tiens new One Body Multiple Wings strategy refers to the development of new tourism, new education, new media, and new hotel business based on the new cross-border model, with global cross-border new direct sales business ( in oversea market ) and new e-commerce as the dual core business segments.
The new global cross-border direct sales business model ( in oversea market) realizes the model of joining in one country and enjoying global benefits through the innovative mechanism model, and the realization of a global income network to achieve innovative incentive benefits.
The new e-commerce business model, by promoting the socialization of e-commerce, focuses on the cross-border purchase of social rigid demand products, and builds a new global cross-border membership e-commerce model based on the new cross-border operation system.
The new tourism, with All Legend Travel Holding Group as the main body, relying on the new direct sales, new e-commerce network system and membership base covering the world to innovate mechanism models, and transforming traditional tourism into dedicated new tourism with new thinking and methods.
The new education relies on the strong strength of the group for more than 20 years of social training and higher education, numerous resources and management experience, integrates advantageous resources, integrates the elements of the times, and builds an education holding group covering the world to promote each other and develop together with other business sectors.
The new media is creating media cooperation alliances, building a global media convergence alliance making full use of global self-media resources and sharing the world flow, through the establishment of "headlines for consumers" development models, and with the focus on "new media" .
The new hotel business, relying on All Legend Hotel Group, on the basis of creating a boutique model, accelerates the global expansion of the business layout, and builds a global hotel industry alliance.
Section IV
Punishments on Violations and Measures to Ensure Correction thereof
1) When distributors are found in violation of the provisions of the TPP, Tiens has the right to give punishments to the offending 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 offending distributor as name, distributor No., 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 influence of the violations falls.
5) Punishment scale:
a. For 8 star and below ranks:
Grade 1: verbal warning
Grade 2: written warning. Tiens company will issue a written paper to urge correcting such misbehavior.
Grade 3: 30% of the one month bonus of such faulty distributors
Grade 4: 30% of the bonus in two months of such faulty distributors
Grade 5: 30% of the bonus in three months of such faulty distributors
Grade 6: Tiens company cancels the distributorship of such faulty distributors. Tiens company cancels all bonus and honors issued by Tiens to such faulty distributors.
b. For Bronze Lion to Star Gold Lion distributors:
Grade 1: verbal warning. Tiens company will instruct such faulty distributors to provide corrective aciton report in written paper.
Grade 2: Tiens company will freeze the bonus. Tiens company will cancel the right of the faulty distributors to attend any BBS conference or any other Tiens business meetings.
Grade 3: 50% of the one month bonus of such faulty distributors
Grade 4: 50% of the bonus in two months of such faulty distributors
Grade 5: 50% of the bonus in three months of such faulty distributors
Grade 6: Tiens company cancels the distributorship of such faulty distributors. Tiens company cancels all bonus and honors issued by Tiens to such faulty distributors.
c. For Director and above rank
Grad 1: 100% of the one month bonus of such faulty distributors
Grad 2: 100% of the bonus in two months of such faulty distributors
Grad 3: 100% of the bonus in three months of such faulty distributors. Tiens company cancels all honors issued by Tiens to such faulty distributors.
Grade 4: Tiens company cancels the distributorship of such faulty distributors. Tiens company cancels all bonus and honors issued by Tiens to such faulty distributors.
6) In case distributors, who are major or potential parties involved in a compliance review in progress, apply for modification 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 influence of the violation on the local market.
9) Even if Tiens has not 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.
10) When Tiens conduct investigation and evidence collection upon receiving related complaint, Tiens distributors shall not provide false/fraudulent statements to Tiens which may disturb the investigation.
11) Without the knowledge of his network leaders, such new distributors register themselves in other sales team network to build Tiens business. Tiens company reserves the right to cancel its new registration and return all sales teams developed by the new qualification to the original network team. The specific punishment measures will be separately formulated according to the local TPP policy, which is not stipulated in this code.
2. Procedures for handling violations
1) Distributors may lodge a complaint within 3 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 submit supporting document including but not limited to Distributor Complaint Form, the complainant’s ID card and evidence that can prove the respondent’s violation.
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 offending 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 fit.
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 offending distributor of its decisions.
8) The complaining distributor may appeal to Tiens for review of the case within 10 working days of the notification, with supplement of new evidences; when the 10-day period expires, it will be construed that distributors accept 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 final, and the appealing distributor must accept same and may not renew his/her appeal.
3. Measures to ensure corrections (MEC)
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 finish 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 attendance 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 to 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 effective measures within the prescribed period, Tiens has the right to take further actions against them.