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1. 1 Code of Ethics for Consultants of TianDe Сorporation Each Consultant of TianDe Corporation shall adhere to the following Business Principles. ã Consultant shall…
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  • 1. 1 Code of Ethics for Consultants of TianDe Сorporation Each Consultant of TianDe Corporation shall adhere to the following Business Principles. • Consultant shall always and everywhere comply with terms of registration and the Code of Ethics for Consultants of TianDe Сorporation in word and deed. • Consultant shall adhere to a common pricing policy. • Consultant knows the products of Corporation and shall use it to carry conviction in its recommendations to others. • Consultant shall provide complete and accurate information about the products and business of Corporation and shall refrain from exaggerations and false statements about the product efficacy and potential income. • Consultant shall refrain from putting pressure on potential customers and Consultants, and shall respect their right to making independent decision about the value of the information provided and the cooperation with Corporation. • Consultant shall conduct business for profit in such a way that the people with whom it works will be able to make profit as well. • Consultant shall use all its skills to teach and inspire to those whose Sponsor he is. Consultant shall perform all the obligations assumed in relation to its Consultants and customers. • Consultant shall be attentive and take kindly to all Consultants, regardless of their rank and whether they are members of its structure or not. • Consultant shall be loyal to its business colleagues (shall not re-execute Consultants). • If there are any disagreements, Consultant shall try to resolve them in keeping with the spirit of understanding and justice for everyone. • A Consultant who is a Sponsor shall bear a moral responsibility to ensure that all of the Consultants in its Structure are aware of the Code of Ethics for Consultants of TianDe Сorporation. • Consultant shall do business honestly, and shall realize that its behavior, words and actions can lead to various consequences. TABLE OF CONTENTS I. Notions and terms II. Principal provisions 1. Consultant registration in TianDe Сorporation 2. Regulation of the activities of spouses and relatives 3. Change of Sponsor 4. Cancellation of registration 5. Obligations of Consultants who are Sponsors 6. Transfer of rights and obligations associated with the activities of Corporation 7. Re-execution 8. Consultant's Bonus Rebate 9. Operating stability of Structures 10. Cooperation with other companies 11. Confidentiality and non-disclosure agreements 12. Promotion and information events 13. Rules of conduct in Dealerships and Service Centers 14. Violation of the TianDe Code of Ethics. Sanctions 15. Amendment of the Code of Ethics and other regulations of Corporation
  • 2. 2 I. Notions and terms Consultant (Distributor) shall mean an individual or a legal entity holding a registration number from the TianDe Copyright Holder through authorized Service Centers or Dealerships or online registration, which has entered into an agency agreement with the Service Center or the Dealership and operates in accordance with applicable law and the Code of Ethics for Consultants of TianDe Сorporation. Registration Number (ID) shall mean a number for computer recording assigned to Consultant during the registration in the Uniform Information Center of the TianDe Copyright Holder. Each Consultant can have only one Registration Number. Information Sponsor (Sponsor) shall mean a Consultant who has engaged another Consultant in person. Structure shall mean all the Consultants in the Sponsor's organization to the last level, arranged in a hierarchical order. 1st Generation Consultants together with their organizations form branches of the Sponsor's organization. The number of branches in the organization corresponds to the number of Sponsor's 1st Generation Consultants. Personal Volume (PV) shall mean purchases made by the Consultant in person during the month. It is considered when assigning a Rank and calculating the Bonus Rebate. It is a monthly indicator. Structural Volume (SV) shall mean the sum of Sponsor's PV and PVs of all Consultants in its Structure regardless of Generation in which they are located. It is a monthly indicator. Generation (Level) shall mean position of Consultant in the Structure from Sponsor's perspective. Consultant for which another Consultant is an Information Sponsor shall be deemed to be its 1st Generation. Accordingly, a Consultant whose Information Sponsor is a 1st Generation Consultant shall be deemed to be a 2nd Generation Consultant, and so on. Point (P) shall mean a standard unit of measurement of value of the goods for which the Bonus Rebate will be accrued. Rank (Status) shall mean an indicator to show the Consultant's career progress. Ranks: VIP Client, Trainee, Instructor, Associate, Master, Manager, Director, Silver Director, Gold Director, Pearl Director, Ruby Director, Sapphire Director, Emerald Director, Diamond Director. Bonus Rebate (BR) shall mean a monthly fee awarded to an active Consultant in accordance with the Uniform Sales Promotion System. It may be awarded in the form of an agency fee or a commission fee. If Consultant is a subject of entrepreneurial activity, it can take full advantage of the benefits provided by the Uniform Sales Promotion System (the TianDe marketing plan). If Consultant is only a product consumer, its benefit shall be limited to the opportunity to purchase products at a discounted price and the Bonus Rebate shall be recognized in the product price. Consultant Price shall mean the price of products at which Consultants acquire the products regardless of Rank. Retail Price shall mean the price of products as recommended by the TianDe Copyright Holder for selling to customers. Additional surcharge to the Consultant price shall be 54%. This is a fixed price for consumers. Regional Surcharge – the TianDe business community shall adhere to a common pricing policy. Subject to the territorial remoteness and complexity of product transportation, the TianDe Copyright Holder shall have the right to recommend the percentage by which it is possible to increase the Retail Price. Online Office (Personal Account) shall mean a personal web office of Consultant to indicate the work (PV, SV, Rank) of each Consultant in its Structure (http://my.tiande.ru/login). Service Center (SC) shall mean a legal entity or an individual entrepreneur that distributes products under TianDe trademarks and provides Consultants and consumers with a full range of TianDe products and publications. A Service Center that has entered into a franchise contract (franchise agreement) with the Copyright Holder and complied with all the terms of this contract shall be deemed to be a TianDe Dealership. TianDe Uniform Information System (UIS) shall mean a Copyright Holder's structural unit to consolidate and processing information on procurement of Consultants in all TianDe Dealerships and Service Centers which have entered into franchise contracts with the Copyright Holder and obtained the Copyright Holder's written permission to use TianDe business systems and sell products under TianDe trademarks. Settlements shall be made in accordance with the Uniform Sales Promotion System (the
  • 3. 3 TianDe marketing plan). The result of the settlements shall be the amount of agency fees paid to the TianDe Consultants by Dealerships and Service Centers based on the results of the reporting period. II. Principal provisions 1. Consultant registration in TianDe Сorporation 1.1. Procedure for registration 1.1.1. Any person that is fully capable under the laws of the country of its residence can become a Consultant. 1.1.2. To become a Consultant of Corporation, one need to register at www.tiande.ru or fill out the application form on paper and forward it to administrator in any Dealership or Service Center. 1.1.3. Consultant registration shall be subject to filling out the Sponsor section in the application form by applicant. 1.1.4. The application form must be filled out by applicant without any errors. If it is filled out with errors that have led to the fact that the applicant is registered in the Structure of another Sponsor, recalculation of the BR shall not be done. Applicant must report to the UIS about these errors and apply for correction of these errors in the application form in accordance with clause 1.3. 1.1.5. In cases where applicant applies directly to the UIS with no Sponsor recommendation, the UIS shall have the right to register the applicant in any existing Structure. 1.1.6. At the time of registration of the form, applicant must not have any other forms with unexpired term of registration. In the case of execution of the application form by a Consultant who has already registered in Corporation, the last registered application form shall be canceled, and the Consultant shall be subject to sanctions provided for in clause 14. 1.1.7. An application form filled out on the traditional paper form must be signed by applicant in person. If it is not signed by applicant in person, or in the absence of such signature, the application form shall be invalid. 1.1.8. When filling out the application form, applicant is advised to specify the Consultant who first invited the applicant to cooperate and spoke about possibilities of Corporation as Sponsor. However, before signing the application form, the right to final selection of Sponsor shall rest with applicant. 1.1.9. In the event applicant relatives have been previously registered in Corporation, the selection of the Sponsor shall be made in accordance with clause 2. 1.1.10. Corporation reserves the right to refuse the applicant in registration of the form. 1.2. Consultant's warranties Applicant's concealment of any data that prevents its registration in Corporation shall be deemed a breach of provisions of the Code of Ethics and terms of registration. Any person who signed the application form, thereby confirms, represents, warrants and undertakes that during the time of registration in Corporation and for the period of registration validity, it: 1.2.1. Meets all the requirements specified in section 1.1. 1.2.2. Is entitled to register the application form in accordance with its terms and applicable law. 1.2.3. Is not engaged in activities that are contradicting with the Code of Ethics or violate terms of registration. 1.2.4. Will not cause any damage to Corporation. 1.2.5. Has provided accurate information about itself in the application form. 1.3. Correction of errors made during registration 1.3.1. If the application form is filled out with errors in the Consultant's personal data (for example, its name, address, telephone numbers, etc.), then to correct these errors one needs to use the Profile section in the Personal Account or file to the TianDe UIS an application for the correction of errors made during registration. 1.3.2. If the application form is filled with errors that have led to the fact that the Consultant is registered in the Structure of another Sponsor, it may, within 30 days of the date of registration, file to the TianDe UIS an application for the correction of errors made during registration, certified by the signature of a Sponsor specified at the time of filling out the form, and an upline Sponsor with the rank of Ruby Director or higher. The UIS will make the appropriate correction on the basis of the filed application. 1.3.3. The application for the correction of errors made during registration may be filed to the TianDe UIS in person or by email at: transfert@tiande.ru.
  • 4. 4 2. Regulation of the activities of spouses and relatives 2.1. Procedure for registration and activities of the spouses 2.1.1. Married spouses may be registered with one family application form with one registration number or in individual application forms. In this case, the first spouse who was registered in Corporation will be deemed to be the Sponsor of the other spouse. 2.1.2. To execute the family application form, Consultants must fill out the application form and append it with the following documents: copies of passports of both spouses and a copy of the marriage certificate. 2.1.3. The first Consultant registered in the family application form shall be called the first owner of the application form. The second Consultant registered in the family application form shall be called the second owner of the application form. 2.1.4. A married Consultant who signs the application form should be aware that any actions taken by its not registered spouse in the framework of Corporation business will be deemed to have been done by its request and authorized by it. Thus, the spouse registered in Corporation shall be liable for any activity contrary to the Code of Ethics, as performed by a spouse who is not a Consultant of Corporation. 2.1.5. Spouses may not have different Sponsors or operate in different Structures. If Corporation becomes aware that the form filed for registration contains false information in the respect that the applicant is not married, or his or her spouse is not a Consultant, this application form shall be deemed invalid and the applicant will be refused registration. 2.1.6. If two Consultants, each of which conducts business with Corporation in different Structures get married, they have the right to maintain their registration numbers and their Structures or to continue operating in the same Structure, but their Structures are maintained in the old lines of Sponsors (i.e., one spouse leaves the Structure in the former sponsorship branch). 2.1.7. Terms of the Uniform Sales Promotion System (the TianDe marketing plan) for family application forms and for Consultants are the same. 2.1.8. Upon reaching the Rank of Director, Consultants with a family form are awarded two certificates of Rank achievement and two merit badges. Both owners of the application form become Rank owners. 2.1.9. If the spouses operate under individual registration numbers, the results of activities of each of them will be considered individually. 2.1.10. Divorce/dissolution of partnership In the case of divorce of spouses (dissolution of partnership) registered in a family application form, the Consultant must file a statement to the UIS and append a copy of the divorce certificate (in case of dissolution of the marriage). One of the owners of the family application form after its termination is entitled to re-register with Corporation in any sponsorship branch and at any time. The existing Structure shall be indivisible under the registration number of the family form. The Consultant who filled out a new application form shall be deemed to be a newcomer; Rank and BR of the family application form shall not be preserved by it. 2.1.10.1. If, during termination of the family application form spouses can reach mutual agreement on ownership of the form, one of them may retain the registration number, and the second Consultant, who declined in favor of the first Consultant shall have the right to fill out a new application form and obtain his or her ID. 2.1.10.2. If, during termination of the family application form the spouses do not reach mutual agreement, the registration number will be assigned to the first owner of the application form. 2.2. Procedure for registration and activities of relatives 2.2.1. Close relatives of Consultant (parents and children) may be registered in Corporation, but the registration is made in the same Structure at the level below. 2.2.2. In exceptional cases registration of close relatives (parents, children) may be done in different sponsor branches, and the relatives must obtain permission from the UIS 2.2.3. If the UIS becomes aware that the form filed for registration contains false information in the respect that the applicant is not a close relative of the Consultant, this application form shall be deemed invalid and the applicant will be refused registration. 3. Change of Sponsor 3.1. A Consultant who has expressed a desire to change the Sponsor shall submit to the UIS a written application with its grounds (facts and events) to indicate the need to change the Sponsor. The application shall be appended by: a written consent of all upline Sponsors of the Structure, and a written approval consent of the new Sponsor.
  • 5. 5 3.2. The entire Structure created by the Consultant who changed the Sponsor shall remains in the same Structure of the first Sponsor. 3.3. The decision to change the Sponsor shall be taken in each case individually. 3.4. The UIS shall have the right to unilaterally refuse the Consultant to change Sponsor, if it deems the grounds presented insufficient. 3.5. In special cases where Consultants and their Structures have no Sponsor, the UIS shall have the right to assign them to other Sponsors in the same Sponsor Structure, with the consent of all upline Sponsors on special terms. 4. Cancellation of registration 4.1. Cancellation (expiration) of registration 4.1.1. Registration shall be canceled automatically if no purchases of products of Corporation are made for three consecutive months of the date of registration. After cancellation, a person may re-register with any Structure and any Sponsor and at any time. 4.1.2. If at least in one of the first three months, including the month of registration, the purchases were made, further cancellation shall be made automatically if no purchases are made on the registration number for six consecutive months. 4.2. Cancellation of the application form on the initiative of Consultant 4.2.1. Consultant shall have the right at any time to cease its operation, by giving a written notice to the UIS. 4.2.2. The Consultant's application form shall be canceled within one month after the application is filed. 4.3. Cancellation of the registration on the initiative of Corporation 4.3.1. Corporation may cancel the Consultant's application form on its own initiative, if the Consultant is in breach of the terms of registration and the Code of Ethics. 4.3.2. If the cancellation of the Consultant's application form is initiated by Corporation, the Consultant shall have no right to demand any payment or compensation from Corporation. 4.4. Immediately after the cancellation of the application form the Consultant shall cease their activities, as well as the use of trademarks, brand names, trade names, labels, logos, and other intellectual property of Corporation. 4.5 In the event of termination of cooperation with Corporation the Consultant's structure will be transferred to the upline Sponsor. 4.6. Resumption of cooperation with Corporation. 4.6.1. The Consultant who ceased cooperation with Corporation on the grounds specified in clause 4.1 may re-register with Corporation at any time. 4.6.2. The Consultant who ceased cooperation with Corporation on the grounds specified in clauses 4.2 or 4.3 may re-register with Corporation not earlier than six months of the date of cancellation of the Consultant's registration. 4.6.3. Spouse and/or close relative of the Consultant who ceased cooperation with Corporation on the grounds specified in clauses 4.2 or 4.3 may be re-registered with Corporation not earlier than six months of the date of cancellation of the Consultant's registration. 4.6.4. The UIS reserves the right to refuse to re-register or to extend the time within which the registration is not permitted if: • it becomes known that during the absence of purchases (inactivity) Consultant purchased products at a Consultant's price for personal use, sold products, was engaged in sponsorship or was looking for applicants for Consultants; • if the Consultant ceased cooperation with Corporation on the grounds specified in clause 4.3. 4.6.5. With the resumption of Consultant's cooperation with Corporation, the Structure previously established by it shall not be returned. 5. Obligations of Consultants who
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