MARKETING PLAN A

GLOSSARY OF TERMS

1. Distributor: is an Indonesian citizen who is recommended by a person from our company and is eligible, then purchases a set of “Starterkit TIENS” of our company products, then fills in an application and becomes an independent distributor of the company.

2. Sponsor: refers to a person who recommends others to take part in TIENS business and fulfills the requirements as an independent distributor of the company. He/she is also referred to as “upline”. 3. Direct Down Line: refers to distributors directly sponsored by an independent distributor.

4. Indirect Down Line: refers to all distributors in your downline but not directly sponsored by you.

5. Direct Network: refers to the network generated through the sponsoring by any one of your direct downlines.

6. Same Level Rank: in network, based on recommendation relationship within one line, a distributor at the same level as you is same level rank.

7. BV: the value of a currency. All TIENS products have a predetermined value. It is used as a tool to assess a distributor’s rank level and bonus. 1 BV = IDR 1,000.

8. Personal Sale: refers to the purchase of products by a distributor during a given month with his or her TIENS ID number, filling in the product purchase form and purchasing a product with BV value.

9. Basic Sale: refers to the purchase of products made by a distributor him/herself with the value of 500 BV.

10. Direct Sale: consists of two components: the first is the Personal Sale of all the direct downlines of a distributor that is 500 BV or more, 2,000 BV or less; the second is personal sale that exceeds 2,000 BV.

11. Indirect Sale: consists of two components: the first is Personal Sale of all direct downlines of a distributor that exceeds 2,000 BV; the second is the total Personal Sale of all the indirect downlines.

12. Total Group Sales (TGS): consists of three components; the first is the Personal Sale volume that is 2,000 BV or less; the second is the accumulated Direct Sale; and the third part is the accumulated Indirect Sale.

13. Current Group Sales (CGS): refers to the total BV generated in a specific month by the network of an independent distributor.

14. Side Volume: refers to the difference between the network sales of an independent distributor in a specific month and total network sales in the same specific month of a downline who has the same level rank as his/her upperline. For example: X is the sales of all network of an independent distributor, the value of Y is the network sale of a Down Line who has the same level rank as him/her. Thus, Side Volume = X-Y.



RANKS AND STANDARDS OF LEVEL PROMOTION

1. One-Star Distributor:

A person who purchases a set of “Starterkit Tianshi” amounting to IDR 85,000 (Eighty-Five Thousand Rupiahs), then he/she is a One-Star Distributor. The distributor is entitled to purchase any of company products at distributor price. Then, he can sell the products at retail price and he will receive 15% profit. He is also entitled to recommend others to join TIENS Company.

2. Two-Star Distributor:

Any One-Star Distributor that makes a one-off purchase of products for 500 BV or more becomes a Two-Star Distributor.

3. Three-Star Distributor:



* Option 1:
Any Two-Star Distributor whose cumulative Personal Sale volume reaches 2,000 BV or more advances to Three-Star Distributor in that month.
* Option 2:
Any new recruit (distributor) who makes a purchase of the company’s products on one-off basis for 2,000BV or more will advance to Three-Star Distributor in the month.

4. Four-Star Distributor:



* Option 1:
Any Three-Star Distributor having at least three direct networks, with a Three-Star Distributor in each network, and the Total Group Sales (TGS) of his/her network reaching 10,000BV or more, advances to a Four-Star Distributor in that month.


* Option 2:
Any Three-Star Distributor having at least two direct networks, with a Three-Star Distributor in each network, and the Total Group Sales (TGS) of his/her network reaching 20,000BV or more, advances to a Four-Star Distributor in that month.

5. Five-Star Distributor:



* Option 1:
Any Three-Star Distributor or above having at least three direct networks, with a Four-Star Distributor in each network, and the Total Group Sales (TGS) of his/her network reaching 40,000BV or more, advances to a Five-Star Distributor in that month.
* Option 2:
Any Three-Star Distributor or above having at least two direct networks, with a Three-Star Distributor in each network, and the Total Group Sales (TGS) of his/her network reaching 80,000BV or more, advances to a Five-Star Distributor in that month.

6. Six-Star Distributor:



* Option 1:
Any Three-Star Distributor or above having at least three direct networks, with a Five-Star Distributor in each network, and the Total Groups Sales (TGS) of his/her network reaching 150,000 BV or more, advances to a Six-Star Distributor in that month.
* Option 2:
Any Three-Star Distributor or above having at least two direct networks, with a Five-Star Distributor in each network, and the Total Groups Sales (TGS) of his/her network reaching 300,000 BV or more, advances to a Six-Star Distributor in that month.

7. Seven-Star Distributor:



* Option 1:
Any Three-Star Distributor or above having at least three direct networks, with a Six-Star Distributor in each network, and the Total Group Sales (TGS) of his/her network reaching 500,000 BV or more, advances to a Seven-Star Distributor in that month.
* Option 2:
Any Three-Star Distributor or above having at least two direct networks, with a Six-Star Distributor in each network, and the Total Group Sales (TGS) of his/her network reaching 1,000,000 BV or more, advances to a Seven-Star Distributor in that month.
* Option 3:
Any Three-Star Distributor or above having at least two direct networks, with a Six-Star Distributor in each network, and four other direct networks with a Five-Star Distributor in each network, and the Total Group Sales (TGS) of his/her network reaching 500,000 BV or more, advances to a Seven-Star Distributor in that month.
* Option 4:
Any Three-Star Distributor or above having at least one direct network, with a Six-Star Distributor in each network, and six other direct networks with a Five-Star Distributor in each network, and the Total Group Sales (TGS) of his/her network reaching 500,000 BV or more, advances to a Seven-Star Distributor at that month.



8. Eight-Star Distributor



* Option 1:
Any Three-Star Distributor or above having at least three direct networks, with a Seven-Star Distributor in each network, and the Total Group Sales (TGS) of his/her network reaching 2,000,000 BV or more, advances to a Eight-Star Distributor at that month.
* Option 2:
Any Three-Star Distributor or above having at least two direct networks, with a Seven-Star Distributor in each network, and the Total Group Sales (TGS) of his/her network reaching 4,000,000 BV or more, advances to a Eight-Star Distributor in that month.
* Option 3:
Any Three-Star Distributor or above having at least two direct networks, with a Seven-Star Distributor in each network, and four other direct networks with a Six-Star Distributor in each network, meanwhile the Total Group Sales (TGS) of his/her network reaching 2,000,000 BV or more, advances to a Eight-Star Distributor in that month.
* Option 4:
Any Three-Star Distributor or above having at least one direct networks, with a Seven-Star Distributor in each network, and six other direct networks with a Six-Star Distributor in each network, meanwhile the Total Group Sales of his/her network reaching 2,000,000 BV or more, advances to a Eight-Star Distributor in that month.





BONUS DISTRIBUTION PLAN

All TIENS distributors are entitled to gain 15% profit from retail sales of TIENS products, also by recommeding a person to join TIENS business and any profit from network sales as well.

1. Development Bonus (46%)
Any Distributor who recommends a person join TIENS business is entitled to earn 28% of Basic Sale as a bonus and ten generation of Upper Line network can enjoy sales of each level in his/her network.

2. Direct Bonus and Indirect Bonus (40%)
Any Distributor, based on his rank, receives bonus from Direct Sale and bonus from Indirect Sale of Downlines with lower rank every month.

3. Leadership Bonus (6%)
A Five-Star Distributor or above with a Downline at the same level as him or her, will receive leadership bonus from the sales of Downlines generations based on the ranks, when fulfilling the requirements of Personal Sale and Side Volume whose amount is in accordance with each rank.

Leadership Bonus for Seven Star Distributor and below is allocated from upper line of higher level, leadership bonus for Eight Star Distributor is issued by the company.



INTERNATIONAL SHARING BONUS AND SPECIAL BONUS (5%+2%)

When achieving the level of Eight Star Distributor, as his/her network expands even more, the Company grants him/her an International Sharing Bonus. Every month, the Company grants him/her 5% of global sales as an International Sharing Bonus to the distributor, as follows:


1. International Sharing Bonus for Bronze Lion is 20%,
2. International Sharing Bonus for Silver Lion is 15%,
3. International Sharing Bonus for Gold Lion is 10%,
4. International Sharing Bonus for One-Diamond Gold Lion, Two-Diamond Gold Lion, Three-Diamond Gold Lion, Four-Diamond Gold Lion, and Five-Diamond Gold Lion 10% each.
5. International Sharing Bonus for Director is 5%.

In order to obtain Development Bonus, Direct Bonus, Indirect Bonus, Leadership Bonus, for the ranks entitled with International Sharing Bonus, the amount and requirements is the same as the Eight-Star Distributor.

Since the grantee of International Sharing Bonus whose rank is higher also fulfilling the requirements of the grantee for International Sharing Bonus whose rank is lower, he/she receives International Sharing Bonus of lower rank at the same time.

1. International Sharing Bonus of Bronze Lion

Any Eight-Star Distributor having at least two direct networks, with an Eight Star Distributor in each network, so he/she earns International Sharing Bonus of Bronze Lion. Any Bronze Lion who, in that month, fulfills Personal Sale of 800 BV or more, meanwhile the sales of downline extra-network of an Eight Star Distributor (Side Volume of International Sharing Bonus) is 18.000 BV or more, is entitled with the portion of International Sharing Bonus of Bronze Lion.

2. International Sharing Bonus of Silver Lion

Any Eight Star Distributor having at least three direct networks, with an Eight Star Distributor in each network, so he/she earns International Sharing Bonus of Silver Lion. Any Silver Lion who, in that month, fulfills Personal Sale of 800 BV or more, meanwhile the sales of downline extra-network of an Eight Star Distributor (Side Volume of International Sharing Bonus) is 12.000 BV or more, is entitled with the portion of International Sharing Bonus of Bronze Lion.

3. International Sharing Bonus of Gold Lion

Any Eight Star Distributor having at least four direct networks, with an Eight Star Distributor in each network, so he/she earns International Sharing Bonus of Gold Lion. Any Gold Lion who, in that month, fulfills Personal Sale of 800 BV or more, meanwhile the sales of downline extra-network of an Eight Star Distributor (Side Volume of International Sharing Bonus) is 6.000 BV or more, is entitled with the portion of International Sharing Bonus of Gold Lion.

4. International Sharing Bonus of One Diamond Gold Lion

Any Eight Star Distributor having at least five direct networks, with an Eight Star Distributor in each network, so he/she earns International Sharing Bonus of One Diamond Gold Lion. A One-Diamond Gold Lion who, in that month, fulfills Personal Sale of 800 BV or more, meanwhile the network sales of the month (Current Group Sales) from each of Eight Star Distributor networks is 160.000 BV or more, is entitled with the portion of International Sharing Bonus of One-Diamond Gold Lion.

5. International Sharing Bonus of Two-Diamond Gold lion

Any Eight Star Distributor having at least six direct networks, with an Eight Star Distributor in each network, so he/she earns International Sharing Bonus of Two-Diamond Gold Lion. A Two-Diamond Gold Lion who, in that month, fulfills Personal Sale of 800 BV or more, meanwhile the network sales of the month (Current Group Sales) from each of Eight Star Distributor networks is 160.000 BV or more, is entitled with the portion of International Sharing Bonus of Two-Diamond Gold Lion.

6. International Sharing Bonus of Three-Diamond Gold Lion

Any Eight Star Distributor having at least seven direct networks, with an Eight Star Distributor in each network, so he/she earns International Sharing Bonus of Three-Diamond Gold Lion. A Three-Diamond Gold Lion who, in that month, fulfills Personal Sale of 800 BV or more, meanwhile the network sales of the month (Current Group Sales) from each of Eight Star Distributor networks is 160.000 BV or more, is entitled with the portion of International Sharing Bonus of Three-Diamond Gold Lion.

7. International Sharing Bonus Sharing of Four-Diamond Gold Lion

Any Eight Star Distributor having at least eight direct networks, with an Eight Star Distributor in each network, so he/she earns International Sharing Bonus of Four-Diamond Gold Lion. A Four-Diamond Gold Lion who, in that month, fulfills Personal Sale of 800 BV or more, meanwhile the network sales of the month (Current Group Sales) from each of Eight Star Distributor networks is 160.000 BV or more, is entitled with the portion of International Sharing Bonus of Four-Diamond Gold Lion.

8. International Sharing Bonus of Five-Diamond Gold Lion

Any Eight Star Distributor having at least ten direct networks, with an Eight Star Distributor in each network, so he/she earns International Sharing Bonus of One Diamond Gold Lion. A Five-Diamond Gold Lion who, in that month, fulfills Personal Sale of 800 BV or more, meanwhile the network sales of the month (Current Group Sales) from each of Eight Star Distributor networks is 160.000 BV or more, is entitled with the portion of International Sharing Bonus of Five-Diamond Gold Lion.

9. International Sharing Bonus of Director

Any Eight Star Distributor having at least four direct networks, with a Gold Lion Distributor in each network, so he/she earns International Sharing Bonus of Director. A Director who, in that month, fulfills Personal Sale of 800 BV or more, meanwhile the network sales of the month (Current Group Sales) from each of Gold Lion Distributor networks is 640.000 BV or more, is entitled with the portion of International Sharing Bonus of Director.

10. Special Bonus (2%)


1. International Tourism Seminar: when a person has reached the level of distributor with Bronze Lion rank or above, so he/she has fulfilled the requirements to enjoy an opportunity to freely join the International Tourism Seminar organized by the company.
2. A Car for a Successful Hero: when a person has reached a level of distributor with Silver Lion rank or above, he/she is eligible to get a luxury car.
3. A Yacht for a Successful Hero: when a person has reached a level of distributor with Five-Diamond Gold Line rank or above, he/she is eligible to get a yacht.
4. A Plane for a Successful Hero: when a person has reached a level of distributor with Five-Diamond Gold Lion rank or above, he/she is eligible to get a plane.
5. A Luxury House for a Successful Hero: when a person has reached a level of distributor with Director rank, he/she is eligible to get a luxury house.

All the bonuses will be granted by the Company every year, by choosing the one with the best salea and is eligible, he/she will be granted once.

11. Lifetime Achievement Bonus (0,5%)

Any Bronze Lion Distributor and above, having at least four direct networks, with a Director in each network, and having at least six direct networks, with a Gold Lion Distributor in each network, so he/she, in that month, earns “International Sharing Bonus” and also “Lifetime Achievement Bonus” that will be counted from 0.5% of International global turnover divided by the number of Executive Directors of TIENS International.





APPENDIX: STATEMENT

All bonuses that are created upon BV sales are subjected to the calculation unit per month. 25th of each month is the last day for TIENS financial month. It means that the BV sales which is achieved before the 25th (including the day) is calculated as the sales of the month; the BV sales which is achieved after the 25th is recorded in the next monthly financial period.

1. About International Sharing Bonus
The distribution of International Sharing Bonus at each level is as follows: International Sharing Bonus = (Company Global Sale of that month X ratio of the International Sharing Bonus) : the number of people in the company globally who are eligible for International Sharing. Besides, Director bonus is calculated per month and distributed quarterly. Director Bonus is calculated per month, distributed annually.

2. Five-Star Distributor or above should achieve given Personal Sale every month in order to receive his/her bonuses. Example: For Five-Star Distributor, his/her monthly Personal Sale is 100 BV; for Six-Star Distributor, his/her monthly Personal Sale is 200 BV; for Seven Star Distributor, his/her monthly Personal Sale is 500 BV; for Eight-Star Distributor and the grantees of International Sharing Bonus from various levels, his/her monthly Personal Sale is 800 BV.

3. The rank of Distributor at each level cannot be degraded, be remained or promoted, the sale is not made zero.

4. The cycle of sales calculation in each period is from 26th of each month to 25th of the following month, bonus is distributed on 26th of the following month.

5. The Interpretation Right of this business plan belongs to Tiens Group Co,Ltd.Tianjin China & TIENS Indonesia.