Policies & Procedures

 

1) Purpose

 

These Policies & Procedures (the “P&P”) spell out the rights and obligations between QNet Ltd (the “Company”) and its Independent Distributors (“Distributors”). The P&P, the Distributor Application Form that is accepted by the Company, and the Compensation Plan together govern the total contractual relationship between the Company and its Distributors.

 

2) Definitions

 

“Agreement” means the completed online Distributor Application Form that was submitted by a Distributor and subsequently accepted by the Company.

 

“Anniversary Date” means the anniversary of the date on which a Distributor was accepted as a Distributor.

 

“Annual Administration Fee” means the non-refundable annual administration fee a Distributor has to pay to renew his contractual relationship as a Distributor with the Company. [See 3.01(d)]

 

“Business Planner” means a kit that includes training materials, the Company’s information, etc, sold by the Company.

 

“Company” means QNet Ltd, which is a company incorporated with limited liability under the laws of Hong Kong and having its registered office at 47/F Bank of China Tower , 1 Garden Road , Central, Hong Kong .

 

“Compensation Plan” means the QNet Marketing and Compensation Plan as detailed in Appendix 1.

 

 

“Compensation Summary” means a periodic statement issued by the Company to its Distributors that lists the value of commission and/or bonuses each Distributor has earned within the relevant period.

 

“Customer” means a person who purchased the Company’s products but does not register as a Distributor.

 

“Downline” means the TCs or Customers/Distributors below a specific TC or Distributor respectively in the Genealogy as the context requires.

 

“Genealogy” means the relationship or relative positioning of TCs in the Company’s database.

 

“Merger” means the combination of two (2) or more into one (1).

 

“OTP Form” mean Offer to Purchase Form, by which a person can offer to purchase the Company’s products.

 

“P&P” means the Policies & Procedures as stated herein.

 

“Person” includes any body of persons, corporate (for example a limited company) or unincorporated (for example a club or an association).

 

“Primary TC” means the first TC a Distributor is given when s/he first becomes a Distributor. It is usually identified by an extension 001 after the Distributor Identification Number.

 

“Product Portfolio” means a kit that includes product catalogues, brochures and flyers.

   

“Products” means any products including services, unless the context otherwise requires.

 

“Quest Account” means an accounting record inside the Company’s accounting system. Each has his/her own Quest Account. Such an account records the amount of money the Company owes to the corresponding Distributor or vice versa.

 

“Distributor” means Independent Distributor (ID) of the Company. A person becomes a Distributor if s/he applies according to the procedures as stipulated in the P&P and is subsequently accepted by the Company to be its Independent Distributor for the promotion of its products.

 

“Distributorship” means all the TCs that a Distributor has and all other interests s/he has as a Distributor.

 

“Distributor Identification Number” means the identification number that the Company assigns to a Distributor when the Company accepts that person as its Distributor. [see 4.01] A Distributor’s Distributor Identification Number is a unique number for each Distributor and it will be used to identify that Distributor through his/her Distributor business relationship with the Company.

 

“Sponsor” means a Distributor who sponsored/introduced Customers and/or other Distributors to the Company and is stated in those Customers’ OTP Form or Distributor Application Form as their Sponsor.

 

“Tracking Centre” means a position in the Company’s database. Commissions and/or bonuses are calculated with reference to each Tracking Centre (TC).

 

“Upline” means the TCs or Distributors above a specific TC or Distributor respectively in the Genealogy as the context requires.

 

3) Independent Distributors

 

3.01 How to become an Independent Distributor

To become an Independent Distributor you shall:

 

(a) Be of legal age in the state, territory or country of your domicile;

(b) Have a Sponsoring Upline;

(c) Complete the online Distributor Application Form on the official website of the Company;

(d) Pay a non-refundable registration fee (“Registration Fee”) in advance or purchase a Business Planner, the price of which includes the Registration Fee.

 

3.02 The Company will repurchase, on reasonable commercial terms, currently marketable company-produced promotional materials and/or Business Planners when a Distributor, for whatever reasons, leaves the Company and decides not to be a Distributor any longer. When a departing Distributor requests the Company to repurchase his/her promotional materials or Business Planner, s/he shall complete a Repurchase Request Form (which can be downloaded from the Company’s official website www.quest.net) and deliver, at his/her own cost and risk, to the Company’s Office in Hong Kong, the promotional materials and/or Business Planner and their respective original receipts. The refund that the departing Distributor will receive is equivalent to his/her cost of the promotional materials and/or Business Planner, less a 10% handling charge.

 

3.03 For applications other than for a natural person, all legal documents along with stockholder details for applying legal entity shall be produced. They shall be submitted within ten (10) days from the date of application to the Company’s Office in Hong Kong . Failure to produce such documents may cause the application to be rejected.

 

3.04 In the event of any changes in Directorships or Shareholder in said entities in 3.03, they shall immediately inform the Company of the change(s) and the Company shall have the right at its sole discretion to terminate or confirm their Independent Distributorship.

 

3.05 If an applicant submits multiple online Distributor Application Forms that list different sponsors, only the first completed application received by the Company will be accepted.

 

3.06 For a Customer of the Company who later applies to become a Distributor, his/her last sponsor for his purchase shall also be his/her sponsor of his/her Distributorship, unless the Customer’s last purchase from the Company was more than six (6) months before his/her Distributor application and in his/her application s/he states another Distributor as his/her sponsor.

 

3.07 The applicant will only be a Distributor if his application is received and accepted by the Company. The Company has the right to accept or decline any application at its sole discretion. In the case of rejection, a notice will be given to the applicant with a complete refund including those listed in 3.01 sub clause (d) above.

 

3.08 A person or entity may not apply as a Distributor using a fictitious or assumed name.

 

4) Appointment

 

4.01 Once the Company accepts an applicant’s Distributor application, the Company will grant to the applicant a Distributor status within the Compensation Plan by sending to him/her a written notice and thereafter the applicant becomes a Distributor. The Company will give the Distributor a Distributor Identification Number. The Distributor shall include this Distributor Identification Number in all his/her orders and correspondences with the Company.

 

4.02 The Company reserves the right to rescind the said acceptance at its sole discretion within sixty (60) days after receipt of the application. Upon rescission of the acceptance, the Company shall give notice to the applicant to notify him/her of the rescission. However, the Company is not obliged to give any reason to the applicant for the Company’s decision to rescind.

 

4.03 Renewal

 

a)             The appointment of a Distributor is for a term of one (1) calendar year only. A Distributor must renew his/her Distributorship annually on or before the Anniversary Date. Subject to any relevant requirements under the Compensation Plan, the Distributor has a right to renew the Agreement by paying the non-refundable Annual Administration Fee on or before the Anniversary Date. If a Distributor fails to renew the Agreement on or before the Anniversary Date, s/he will thereafter have a grace period of thirty (30) days to pay the Annual Administration Fee. If Annual Administration Fee is paid within the thirty (30) days, s/he will be deemed to have been renewed his/her Agreement on his/her Anniversary Date in that year.

 

b)             A Distributor has the right not to renew his/her Agreement at his/her sole discretion. If a Distributor does not renew his/her Distributorship on or before his/her Anniversary Date and before the expiry of the grace period, his/her Distributorship shall become inactive with retrospective effect back to the date of the relevant Anniversary Date. Once an Distributorship becomes inactive, the ID concerned shall not be entitled to enjoy any IDs’ rights provided for in this P&P, including but not limited to the right to any bonuses and/or commission accrued after that Anniversary Date should his/her Distributorship have not become inactive, except the right to renew his/her Distributorship by paying the non-refundable Annual Administration Fee.

 

 

c)             If an inactive ID subsequently renews his/her Distributorship, s/he shall thereafter be entitled to enjoy all the rights provided for in the P&P. For avoidance of any doubt, a former inactive ID shall be entitled only to commission and/or bonuses accrued after his/her renewal. S/he is not entitled to any commission that may have been accrued in the period during which his/her Distributorship is inactive, ie from the relevant Anniversary Date up to the date of his/her renewal .”

 

 

4.04 A Distributor is an independent contractor having the rights and obligations conferred by the P&P to promote or market the products of the Company.

 

4.05 A Distributor is not a franchisee, partner, employee, agent or Distributor of the Company. S/he has no right to, and shall not, represent himself/herself as such. The relationship between a Distributor and the Company is wholly governed by this P&P. Any breach of this clause on the part of the Distributor is a serious breach of the P&P and may result in the immediate termination of his/her Distributorship.

 

4.06 As a Distributor is not an employee of the Company, any costs s/he incurs in the development of his/her business are at his/her own expenses. S/he shall not be entitled to seek reimbursement from the Company.

 

4.07 Similarly, the Company is not responsible for payment or co-payment of any employee benefits for its Distributors. Distributors are responsible for their own liability, health disability and workmen’s compensation insurance, etc.

 

5) Distributor’s Rights and Obligations

 

5.01 Non-exclusivity

A Distributor has a non-exclusive right to market and promote products of the Company. There are no geographical limitations existing on sponsoring or selling country; provided, however, that the Company reserves the right not to sell products or services in any states, territories or countries.

 

5.02 Right to sponsor

Only a Distributor has a right to sponsor Customers and/or sponsor another new Distributor to the Company and enjoys the benefits under the Compensation Plan for doing so. When sponsoring new Distributors to the Company, the sponsoring Distributor shall give the person/s whom s/he intends to sponsor a copy of the P&P, a Distributor Application Form and details of the Compensation Plan.

 

5.03 Right to purchase at discounted prices

The first purchase of a Distributor of products of the Company shall be at his/her retail prices if the Distributor has not been able to promote any product of the Company successfully to a Customer before his/her own purchase. Subject to the aforesaid, the Distributor shall have a right to purchase products of the Company at a discounted price (the “Distributor Price”).

 

5.04 Rights to Company Literatures and Communication, etc; Rights to participate in Company functions

Distributors may receive periodic literature and other communication from the Company. They will also be invited to, and upon payment of appropriate charges if applicable, participate in Company-sponsored support, service, training, motivational and recognition functions. They may also be invited to participate in promotional and incentive contests and programmes sponsored by the Company for its Distributors.

 

5.05 No right to represent the Company as an agent or an employee

A Distributor has no right to negotiate or conclude any contract on behalf of the Company. Nor shall s/he hold himself out as having such a right. S/he shall not represent himself/herself as agent, Distributor or employee of the Company.

 

5.06 Obligation for personal promotion

Regardless of their level of achievement, Distributors have an ongoing obligation to continue to personally promote sales through the introduction of new Customers to the Company and through servicing their existing Customers.

 

5.07 Obligations to Downlines

Any Distributor who introduces another Distributor to the Company is highly recommended to perform a bona fide assistance and training function to ensure that his/her Downline is properly operating and conducting his/her Distributor business. It is both to the advantage of Sponsor Uplines and their Downlines to have ongoing contact and communication. Distributors must truthfully and fairly describe the Compensation Plan. No past, potential or actual income claims may be made to prospective Distributors. Nor may Distributors use their own incomes, or other Distributor’s income, as indications of the success assured to others. Commission cheques shall not be used as marketing materials. Distributors shall not guarantee commissions or estimate expenses to prospects.

 

5.08 Cross-lining

Subject to sub clauses 9(A) & 9(C), no Distributor may sponsor or attempt to sponsor another Distributor from a different line of sponsorship to ‘switch’ to another line of sponsorship. Examples of cross-lining are:

 

a)      Placing additional TCs of his own in lines of sponsorship not below his Primary TC;

b)      Placement of a new Distributor using anyone’s name known to the Sponsor Upline and placing it in lines of sponsorship not below the Sponsor Upline’s Primary TC while intending to profit from the proceeds of the said new Distributor;

c)      A Distributor owning an interest in an entity which is a Distributor in lines of sponsorship not below his Primary TC;

d)      Entering in other lines of sponsorship under the same name as an existing Distributor using a valid Distributor Identification Number other than the one used previously. Any situation (whether the above examples or others) found to be in violation of this clause shall be met with the greatest scrutiny and may result in termination of the newly placed Distributor, as well as the Distributor having instigated said situation.

 

5.09 60-Day non-compete clause

If a Distributor who attempted and successfully procured a prospective Customer/Distributor to sign any written document evidencing that the Distributor attempted, successfully or unsuccessfully, to sponsor that prospective Customer/Distributor to the Company, the prospective Customer/Distributor shall not within sixty (60) days from the date of the written document register himself under the sponsorship of another Distributor. The Company shall have the right to suspend, terminate or switch the TC or Distributorship for any breach of this sub-clause.

 

 

 

5.10 Obligation of not referring to other programmes

A Distributor shall not sponsor, attempt to sponsor, or knowingly assist another person to sponsor, another Distributor or any person into any other network marketing company or into another Distributor’s sales organization. In addition, no Distributor shall participate in any action knowing that participating in the action may cause another Distributor or any person to be sponsored through someone else into another network marketing company.

 

Distributors are strictly prohibited to promote any competitive services, products and/or business programmes.

 

At Company functions, or on all Company property, no Distributor shall solicit any person to join any other network marketing company or involve the sale of products of any other network marketing company. Breach of any part of this clause is a serious breach of the P&P and may lead to the immediate suspension or even termination of the Distributorship of the Distributor who is in breach.

 

5.11 Breach of security

All Distributors have a responsibility to maintain the network integrity of the Company. Any Distributor who is found ‘hacking’ into or interfering or tampering with the Company’s database or any part of the Company’s computer system (hardware and/or software) or attempting to do any of the aforesaid acts without the proper authorization shall be liable to immediate termination of his Distributorship. They shall also be liable for all consequential damages and losses of the Company.

 

5.12 Legal compliance

Distributors must comply with all laws, statutes, regulations and ordinances concerning the operation of their Distributor business.

 

5.13 Tax, expenditures, etc.

Distributors are personally responsible for paying local, state, provincial, and federal taxes on any income they generate as Distributors. Unless required by laws, regulations or rules in any relevant countries, the Company shall have no obligation to provide tax information about the commissions and/or bonuses its Distributors earned on behalf of Distributors to any government authorities or to withhold any commissions and/or bonuses for paying its Distributors taxes.

 

Any commissions paid by the Company are gross profits with no taxes of any kind withheld by the Company. If subsequent to payment of commissions and/or bonuses to a Distributor, the Company is found liable for not withholding tax relating to those commissions and/or bonuses, the Distributor shall indemnify the Company for such a liability.

 

5.14 Obligation to the Company

A Distributor shall, at all times, remain loyal to the Company and shall not publish any written and/or verbal disparaging or adverse information/statement against the Company. He shall hold the Company’s management in high esteem at all times, failing which, he may be terminated notwithstanding that he may also be liable for libel or slander.

 

6) Commissions and Bonuses

 

6.01 Qualification for commissions and bonuses

A Distributor must be active and in compliance with the Agreement, P&P and the Compensation Plan and have paid the Registration Fee or Annual Administration Fee to qualify for commissions and/or bonuses. So long as a Distributor is entitled under the Compensation Plan to receive commissions and/or bonuses, the Company shall pay commissions and/or bonuses to the Distributor in accordance with the Compensation Plan. Distributors must consult the Compensation Plan for a detailed explanation of the benefits, commissions and bonuses structure and the corresponding requirements.

 

Commissions and bonuses are paid ONLY on the sale of the Company products. No commission or bonus is paid on the purchase of the Company’s sales materials, literatures, Business Planner or for sponsoring other Distributors and/or Customers.

 

In order to receive commissions on products sold, a Distributor has to complete a Distributor Application Form that has to be received and accepted by the Company prior to the end of the Commission Period in which the sale is made.

 

Commissions and bonuses are calculated for each individual Tracking Centre. A Distributor is entitled to have more than one (1) Tracking Centre. For details of acquisition of additional TCs and placement of TCs, please see the Compensation Plan.

 

6.02 Commission Period

A Commission Period means the time period at the end of which commissions are calculated and paid out for that period. It starts from 00:01 Saturday to 23:59 Friday. However, calculation for commission is calculated daily at the end of each day from Monday to Friday only. All transactions or CUVs accumulated by or for any Distributor during Saturday and Sunday shall be considered as if they are accumulated on Monday for all the purposes of calculating commission and bonuses.

 

6.03 Adjustments to commissions and/or bonuses

Distributors receive commissions, bonuses and other benefits under the Compensation Plan based on the actual sales of products to Customers. When a product is returned to the Company for a refund or is repurchased by the Company or the transaction is in anyway not successfully completed, the commissions, bonuses and/or other benefits attributable to the returned, repurchased product or the unsuccessful transaction will be deducted, in the Commission Period in which the refund or repurchase occurs, and continuing every Commission Period thereafter until the commissions, bonuses and/or other benefits is fully recovered from the Distributors who received commissions and/or bonuses on the sales of the refunded or repurchased product.

 

In addition, if the Company has already paid commissions and/or bonuses to a Distributor for a returned product, the Company shall have the right to request the Distributor for the return of the said commission and/or bonuses and the Distributor shall have the obligation to return such commissions and/or bonuses to the Company.

 

6.04 Compensation Summary

The Company reserves the right to charge a processing fee when issuing an electronic or paper Compensation Summary requested by Distributors.

 

 

 

 

6.05 Payment of commission

All commissions and/or bonuses a Distributor earns will be credited to his/her Quest Account. The Distributor can give instruction to the Company for the payment out of his/her Quest Account by way of commission cheque.

 

6.06 Unclaimed commissions and/or bonuses

Distributors must deposit or cash commission cheques within six (6) months from their date of issue. A cheque that remains uncashed after six (6) months will be made void. After a commission cheque has been void and if the Distributor who holds that void commission cheque requests the Company to reissue another commission cheque to replace the void one, the Company shall be entitled to charge that Distributor a processing fee for reissuing a commission cheque. The processing fee shall be deducted from the balance owed to the Distributor.

 

6.07 Back order policy

Company will expeditiously ship all products currently in stock. Any out-of-stock items (unless discontinued) will be placed on back order and distributed upon the Company receiving additional inventory. Sponsoring Distributors will be granted commissions on back-ordered items once they are shipped, unless notified of the discontinuance of such product. Back orders may be cancelled upon the Customers’ request

 

6.08 Set off

The Company shall have the right to set off any debt(s) a Distributor owes to the Company against his bonuses and/or commissions.

 

7) Resignation, Suspension and Termination

 

7.01 Resignation

A Distributor may voluntarily resign from and terminate his/her Distributorship by tendering thirty (30) days’ written notice of such voluntary resignation or termination to the Company. Voluntary resignation and termination is effective upon the receipt of such notice by the Company.

 

 

7.02 Suspension

A Distributor may be suspended for violating any term of the Agreement, P&P, the Compensation Plan and/or any other relevant documents produced by Company. When a decision is made to suspend a Distributor, the Company will inform the Distributor in writing of the decision, the effective date of the suspension, the reason(s) for the suspension, and the steps necessary to remove such suspension (if any). The suspension notice will be sent to the Distributor’s address on file pursuant to the notice provisions contained in the P&P. Such suspension may or may not lead to termination of the Distributor as so determined by the Company at its sole discretion. If the Distributor wishes to ask the Company to review the decision, he shall make such a request in writing to the Company within fifteen (15) days from the date of the suspension notice. The Company will review and consider the suspension and notify the Distributor in writing of its decision within thirty (30) days from the date of the receipt of the Distributor’s written request. The Company will thereafter not further review its own decision. The Company may take certain action(s) during the suspension period, including, but not limited to, the following:

 

a) Prohibiting the Distributor from holding himself as Distributor or using any

of Company’s proprietary marks and/or materials;

b) Withholding commissions and/or bonuses due to the Distributor during the suspension period;

c) Prohibiting the Distributor from purchasing services and products from the Company;

d) Prohibiting the Distributor from sponsoring new Distributors, contacting current Distributors, or attending meetings of Distributors.

e) If the Company, at its sole discretion, determines that the violation that caused the suspension is continuing and has not satisfactorily been resolved, or a new violation involving the suspended Distributor has occurred, the suspended Distributor may be terminated.

 

7.03 Termination

Dependent upon the seriousness of the violation, a Distributor may be immediately terminated for violating the terms of the Agreement, P&P, Compensation Plan and/or any other relevant documents produced by the Company. The Company may, at its sole discretion, terminate a violating Distributor without placing the Distributor on suspension. When the decision is made to terminate a Distributor, the Company will inform the Distributor in writing to the address in the Distributor’s file that the termination has occurred.

 

If a Distributor wishes to ask the Company to review the decision to terminate, s/he shall make such a request to the Company in writing within fifteen (15) days from the date of notice of termination. If no such request is received by the Company within the fifteen (15) day period, the termination will automatically be deemed final. If a Distributor files a timely written request, the Company will review the decision and notify the Distributor of the result of the review within thirty (30) days after receipt of the Distributor’s request. Thereafter, the Company will not further review its own decision. In the event the termination decision is not reversed, the termination will remain effective as of the date stated in the original termination notice.

 

7.04 Effects of resignation, suspension and termination

After resignation, the former Distributor shall not further represent himself/herself as a Distributor of the Company, and shall cease to use any materials bearing the trademarks, service marks, trade names and any signs, labels, stationery or advertising referring to or relating to any products, plan or programme of the Company. S/he shall have no rights to enjoy any benefits under the P&P and the Compensation Plan.

 

If a Distributor is suspended, s/he shall not before the removal of his/her suspension, further represent himself/herself or hold himself/herself out as Distributor of the Company. Nor shall s/he use any materials bearing the trademarks, service marks, trade names and any signs, labels, stationery or advertising referring to or relating to any products, plan or programme of the Company. S/he shall have no rights to enjoy any benefits under the Agreement, P&P and/or the Compensation Plan. But s/he shall be allowed to retain his/her TCs pending the final resolution of his/her case. Any commissions and/or bonuses payable to him/her should s/he not be suspended shall be retained by the Company. If the suspension of the Distributor is subsequently removed, all outstanding commissions and/or bonuses shall be paid to the Distributor. However, if the Distributor is subsequently terminated, the termination shall be treated as effective from the effective date of the suspension and all commissions and/or bonuses retained as aforesaid by the Company shall be forfeited forthwith to the Company.

 

Immediately upon termination, the terminated Distributor:

 

a) Must remove and permanently discontinue the use of the trademarks, service marks, trade names and any signs, labels, stationery or advertising referring to or relating to any product, plan or programme of the Company.

b) Must cease representing himself/herself as a Distributor of the Company;

c) Loses all rights to his/her Distributor position in the Compensation Plan and to all future commissions and earnings resulting therefrom;

d) Must take all actions reasonably required by the Company relating to protection of Company's confidential information. Company has the right to set off any amounts owed by the Distributor to the Company including, without limitation, any indemnity obligation incurred pursuant to Subclause 11.15 herein, from commissions or other compensation due to the Distributor.

 

7.05 Reapplication

A Distributor who resigns or determinates his Distributorship may reapply as a new Distributor but such reapplication will only be considered twelve (12) months after resignation. The acceptance of any reapplication of a terminated Distributor shall be at the sole discretion of Company.

 

8) Transfer of Distributorship

 

8.01 Acquisition of Distributorship

a)      Except as expressly set forth herein, a Distributor may not sell, assign or otherwise transfer his Distributorship (or any rights thereof) to another Distributor or to any person. Notwithstanding the foregoing and paragraph (c) below but subject to paragraph (d), a Distributor may transfer his Distributorship to his personal sponsor or the personal sponsor of his personal sponsor up to five personal sponsor levels. In such an event, the sponsor's Distributorship and the transferring Distributor’s Distributorship shall be merged into one entity.

 

b)      No transfer of Distributorship shall be allowed within a six (6) calendar month period from the date of the registration of the Distributor. In the event of a transfer, a Distributor has to transfer all his TCs, i.e. the entire Distributorship, to the transferee without exception.

 

c)      Any Distributor desiring to acquire the Distributorship of another Distributor or any interest therein must first terminate his Distributorship and wait twelve (12) months before becoming eligible for such a purchase. All such transactions must be fully disclosed and must be approved by the Company in advance.

 

d)      Distributors may not sell, assign, merge or transfer his Distributorship (or any right thereto) without the prior written approval of the Company and compliance with the following conditions:

 

d.1) The Company possesses the right of first refusal with respect to any sale, assignment, transfer or merger of any Distributorship. A Distributor wishing to sell, assign, or transfer his Distributorship must first offer it to the Company in writing on the same terms and conditions as any outstanding or intended offer. The Company will advise the Distributor within fifteen (15) business days after receipt of such notice of its decision to accept or reject the offer. If the Company fails to respond within the fifteen (15) day period or declines such offer, the Distributor may make the same offer or accept any outstanding offer that is on the same terms and conditions as the offer to the Company to any person who is not a Distributor;

 

d.2) The selling Distributor and/or the prospective purchaser must provide the Company with a copy of all documents that detail the transfer, including, without limitation, the name of the purchaser, the purchase price, and terms of purchase and payment;

 

d.3) An office administration transfer fee of USD 100 must accompany the transfer documents;

 

d.4) The Distributorship transfer agreement must contain a condition made by the selling Distributor for the benefit of the proposed purchaser not to compete with the proposed purchaser or attempt to divert or sponsor any existing Distributor for a period of one (1) year from the date of the sale or transfer;

 

d.5) Upon a sale, transfer or assignment being approved in writing by the Company, the purchaser must assume the position and terms of the agreement of the selling Distributor and must execute a current Distributor Application Form and all such other documents as required by the Company;

 

d.6) The Company reserves the right, at its sole discretion, to stipulate additional terms and conditions prior to approval of any proposed sale or transfer. The Company reserves the right to disapprove any sale or transfer.

 

8.02 If a Distributor changes the terms or conditions of the offer at any time, the process of offering must start over, beginning with offering it to the Company.

 

8.03 Any sale, assignment, or transfer of Distributorship or any interest therein not complying with the above requirements will not be accepted or recognised by the Company.

 

8.04 No transfer, assignment, or sale of Distributorship will be allowed if the transferor, assignor or selling Distributor has not fully paid for products s/he has ordered from the Company.

 

8.05 Transfer of a Distributorship to one’s own Downline is not allowed.

 

8.06 If it is determined, at the Company's sole discretion, that a Distributorship was transferred in an effort to circumvent compliance with the Agreement, the P&P and/or the Compensation Plan, the transfer will be declared null and void. The Company may at its sole discretion, take appropriate action(s), including but without limitation, terminating the transferring Distributor’s Distributorship.

 

9) Devolution

 

9.01 Death

A Distributor has a right to nominate a person as his nominee to whom the Company will transfer the Distributor’s Distributorship upon the death of the Distributor. The Distributor has a right to change his nominee in his lifetime by giving written notice to the Company. However, the Company will not accept such a transfer unless the nominee or the last nominee has executed a current Distributor Application Form and submitted certified copies of the death certificate of the Distributor to the Company. The nominee will then be entitled to take over the Distributorship of the late Distributor and entitled to all the commissions, bonuses, or other benefits accrued thereafter and all the rights and/or be subject to all the obligations as a Distributor of the Company. If a Distributor did not make any nomination in his lifetime, his Distributorship shall be terminated immediately upon his death. Any cross-lining as a consequence of the devolution of Distributorship under this sub clause shall not be treated as a breach of the P&P.

 

9.02 Dissolution of a partnership

If a Distributorship is registered by two (2) or more persons, they will be deemed as partnership under the Agreement and the P&P. In the event that the partnership is dissolved, unless the Company receives a valid and legally enforceable agreement signed by all the partners regarding the arrangement of their Distributorship within thirty (30) days of being notified of the dissolution of the partnership, their Distributorship will be automatically terminated after the expiry of the said thirty (30) day period.

 

9.03 Marriage and divorce

In the case that two (2) Distributors in separate lines of sponsorship get married, they may maintain their own individual Distributorship. They are also allowed to merge their Distributorships into one (1) but they are not allowed to transfer or change the positions of their TCs in the Genealogy. This shall not be treated as cross-lining under subclause 5.08. Should a married couple opt to create a single Distributorship reflecting both as equal owners and these two (2) individuals subsequently divorce or separate, the Company will continue to pay earned commission as before the divorce or separation until the Company receives written notice, signed and notarized by both parties or by a court decree specifying how future commission are to be paid.

 

10) Proprietary Info rmation

 

10.01 Confidential information

During the term of the Agreement, the Company may supply to Distributors confidential information, including, but not limited to, genealogical and Downline reports, Customer lists, Customer information developed by the Company or developed for and on behalf of the Company by Distributors (including, but not limited to, credit data, Customer and Distributor profiles and product purchase information), Distributor lists, manufacturer and supplier information, business reports, commission or sales reports and such other financial and business information that the Company may designate as confidential. All such information (whether in written or electronic format) is proprietary and confidential to the Company and is transmitted to Distributors in strictest confidence on a ‘need-to-know’ basis for use solely in the Distributors’ business with the Company.

 

Distributors must use their best efforts to keep such information confidential and must not disclose any such information to any third party, or use such information for any non-Company activity directly or indirectly while a Distributor and thereafter. Distributors must not use the information to compete with the Company or for any purpose other than promoting the Company's programme and its products and services. Upon determination, non-renewal or termination of the Agreement, Distributors must discontinue the use of such confidential information and promptly return any confidential information in their possession to the Company.

 

10.02 Online and telephonic reports

The Company will use its best effort to provide accurate information such as online or telephonic Downline activity reports, including, but not limited to personal and group sales volume (or any part thereof), and Downline sponsoring activity to Distributors. Nevertheless, due to various factors including the inherent possibility of human and mechanical error; the accuracy, completeness, and timeliness of orders; denial of credit card and electronic check payments; returned products; credit card and electronic cheque

charge-backs; the information is not guaranteed by the Company or any persons creating or transmitting the information.

 

10.03 Use of Company name, trade name or logo, etc.

 

(a) The Company name, logo, trade name, trademarks, product names, brochures, catalogues, sales material, contracts and sales training sessions, literature, audio or video material, presentations or events are copyright-protected property of the Company worldwide and the Company retains ownership rights or exclusive licences to the entire contents.

 

(b) Distributors shall not reproduce or distribute privately reproduced versions of such materials under any circumstances. Distributors shall not use the Company name, logo, trade name, trademarks, programme names or product names in any manner or form.

 

(c) Naming Protection Reserved by the Company.

In addition to any relevant intellectual property laws, the following list of names are also reserved and restricted from use by Distributors in their Distributor activities: QI Ltd, QI Holdings Ltd, QI, QuestNet Ltd, QNet Ltd, GoldQuest International Ltd, Quest Vacation International Ltd, QVI, Gold, Gold Team, GQI, V-Team, The V, VTI, Bank, Gold Rush, Legal, GITA, RYTHM, R.Y.T.H.M. or RYTHM Asia, Prana Resort, JR Mayer Collection, Qatana, Amezcua Wellness, Cimier, QPlus, Q-Shoppe, QuEX and Bonvo. These names are also prohibited from use by Distributors in relation to their Distributor business activities on their personal website and/or email addresses.

 

10.04 Copyright restrictions

With respect to product purchases from the Company, Distributors must abide by all manufacturers' use restrictions and copyright protections.

 

Without prior written approval from the Company, no Distributor shall video and/or audio record the Company’s meetings, conferences and/or training sessions or any speeches (including conference calls) given therein.

 

10.05 Vendor confidentiality

The Company's business relationships with its vendors, manufacturers and suppliers are confidential. Distributors must not contact, directly or indirectly, or speak to, or communicate with any supplier or manufacturer of the Company except at the Company sponsored events at which the supplier or manufacturer is present at the request of the Company.

 

11) Promotion of Distributor's Business

 

11.01 Only the promotional and advertising materials produced or approved in advance in writing by the Company may be used to advertise or promote a Distributor’s business or to sell products and services of the Company. Company literature and materials may not be duplicated, reprinted or personalised without prior written permission.

 

All promotional items that bear the Company’s name or logo must be purchased solely from the Company unless prior written permission is obtained from the Company.

 

A Distributor may affix his/her name, address, Independent Distributor title, phone number and Distributor Identification Number to any promotional materials that the Company approved or sold to him/her.

 

11.02 Income claims

No income projections, including those based solely on mathematical projections or ‘ideal projections’ of the Compensation Plan may be made to prospective Independent Distributors. No Independent Distributor may represent his/her own incomes as indications of the success assured to others, since income success has many variables. Independent Distributors shall not guarantee salaries, draws, expenses, allowances, etc. No Independent Distributor shall show or display an original or a copy of his/her earned commission or bonus cheque as enticement to any prospective Independent Distributor.

 

11.03 Title of Distributors

Distributors shall only present themselves as “an Independent Distributor of the Company”. Reference may be made to the relative rank a Distributor achieved at any one time, for example an Executive Independent Distributor.

 

11.04 Stationery and business cards

 

(a) Only the approved Company graphics version and wording are permitted to be used.

 

(b) Unless prior approval has been obtained from the Legal Affairs Department of the Company, Distributors are not permitted to ‘create’ their own stationery, business cards or letterhead graphics, where the Company's trade name or trademarks are used.

 

(c) Distributors are not allowed to insert the address, contact phone number or emails of any office of the Company or its associated companies in their business cards, stationery or letterheads.

 

11.05 Electronic advertising

Distributors may not advertise or promote the Company's business, products or marketing plan or use the Company's name in any public media including electronic media or transmission, on the Internet via websites or otherwise, without the prior written approval of Company's legal department. Spamming and use of automatic telephone dialing systems are prohibited. Breach of this sub clause is a serious breach of the P&P and could lead to the immediate suspension or even termination of the Distributorship of the Distributor who is in breach.

 

11.06 Telephone listing

Distributors are not permitted to use the Company's trade name in advertising their telephone and telecopy numbers. Distributors are not permitted to list their telephone numbers under the Company's trade name without first obtaining the prior written approval from the Company’s Legal Affairs Department.

 

11.07 Media interviews

Distributors are prohibited from granting radio, television, newspaper tabloid or magazine interviews or using public appearances, public speaking engagements, or making any type of statement to the public media to publicise the Company, its products or Company businesses, without the express prior written approval of the Company. All media enquires should be referred to the Company's Hong Kong Office, Corporate Affairs Department.

 

11.08 Endorsement

No endorsements by a Company officer or administrator or third party may be asserted, except as expressly communicated in the Company literature and communication. Country, Federal and State regulatory agencies do not approve or endorse direct selling programmes. Therefore, Distributors shall not represent or imply, directly or indirectly, that Company's programmes, products or services have been approved or endorsed by any country or governmental agency.

 

11.09 Independent communication

 

Distributors, as independent contractors, are encouraged to distribute information and direction to their respective Downlines. However, Distributors must identify and distinguish between their personal communication and the official communication of the Company when they communicate with their own Downlines.

 

11.10 Display of Company products

The integrity of the Compensation Plan is built upon person-to-person, one-on-one and in-door presentation methods of sale. Distributors shall not knowingly sell any Company product to, or display any Company product, Company name, trademarks, literatures, promotional materials at, any retail outlet, including, but not limited to, supermarkets or food stores, flea markets or swap meets, permanent restaurant displays, bars or night clubs or any such similar establishment, convenience stores or gas stations. Exemptions must be approved in writing by Legal Affairs Department of the Company.

 

Distributors may promote the Compensation Plan at their office, fairs and trade shows on the condition that it is not shown or displayed with any other plan associated with any direct selling company or networking company.

 

11.11 Product and services claims

Distributors shall make no claim, representation or warranty concerning any product of the Company, except those expressly approved in advance in writing by the Company or contained in official Company materials, such as P&P.

 

11.12 Fax blasts, spamming

Fax blasting and unsolicited emailing (spamming) is prohibited.

 

11.13 Record keeping

The Company encourages all Distributors to keep complete and accurate records of all their business dealings.

 

11.14 Legal conformity

Any tool or presentation technique used by a Distributor whilst promoting the Company’s business concept, products and/or the Compensation Plan must be within the scope of a Distributor’s rights in their respective country/state/providence. It is the Distributor’s responsibility to ensure that any statements made, or any demonstration techniques performed, are, in fact, lawfully permitted in their country/state/providence. If a special licence or professional degree is required in a certain location to legally make such statements or perform such presentations, or to conduct business, then it is the Distributor’s responsibility to secure the necessary license, degree or permit.

 

11.15 Indemnity agreement

Each and every Distributor shall indemnify and hold harmless the Company, its shareholders, officers, directors, employees and agents from and against any claim, demand, liability, loss, cost or expense including, but not limited to, court costs and attorneys' fees, asserted against or suffered or incurred by any of them, directly or indirectly arising out of or in any way related to or connected with allegedly or otherwise, the Distributor’s:

 

(a) Activities as Distributor;

(b) Breach of the terms of the Agreement;

(c) Violation of or failure to comply with any applicable laws, regulations, or rules.

 

12) General Provisions

 

12.01 Company’s employee prohibition

Employees of the Company and their immediate family members (for example spouse, mother, father, brother, sister, etc) who are domiciled at the same household as the employee are prohibited to take part in the Compensation Plan. Breach of this policy shall be deemed serious, and could result in the dismissal of the employee and the removal of his entire network to the credit of the Company. Distributors being transferred to a Company post on salary with the Company shall, prior to their taking up their post, file ownership transfer notice to the Company and give up their ownership rights and privileges of their TCs.

 

12.02 Liability

To the extent permitted by law, the Company shall not be liable for, and each Distributor releases the Company from, and waives all claims for any loss of profits, indirect, direct, special or consequential damages or any other loss incurred or suffered by Distributor as a result of:

 

(a) The breach by another Distributor of his Agreement, any term or condition of the P&P, and/or the Compensation Plan;

(b) The operation of other Distributor’s business;

(c) Any inadvertent, incorrect or wrong data or information provided by the Company;  

(d) The failure to provide any information or data necessary for Distributors to operate their business, including, without limitation, the marketing and promoting of products of the Company and/or the introducing or sponsoring persons as Customers/Distributors to the Company.

 

12.03 Force majeure

The Company shall not be responsible for delays or failure in performance caused by circumstances beyond the Company’s control, such as strikes, labor difficulties, fire, war, government decrees or orders or curtailment of a party's usual source of supply.

 

12.04 Violations

It is the obligation of every Distributor to abide by and maintain the integrity of the P&P. If a Distributor observes another Distributor committing a violation, s/he should discuss the violation directly with the violating Distributor. If the Distributor wishes to report such violation to the Company, s/he should detail the violation in writing or complete the Company’s Complaint Form, which is downloadable from the official Company website at www.quest.net and mark the correspondence “attention: Network Compliance Department” or by email to ncd@qnet.net .

 

12.05 Amendments

The Company reserves the right to amend/change the P&P, its retail prices, products and services availability and/or the Compensation Plan at any time without prior notice as it deems appropriate. Amendments will be communicated to Distributors through official Company publications or the Company website at www.quest.net. Amendments are effective and binding upon submission to the Company website. In the event any conflict exists between the original documents or policies and any such amendment, the amendment shall prevail.

 

12.06 Assignment / Novation / Transfer

The Company may at any time, without the consent of the Distributor, assign, novate or transfer all or part of its benefits, rights and obligation under the Agreement and the P&P to a third party and the Distributor undertakes to execute and do all such things as the Company may require for perfecting and completing such assignment, novation or transfer.

 

12.07 Non-waiver provision

No failure of the Company to exercise any power under the P&P or to insist upon strict compliance by Distributor with any obligation or provision herein, and no custom or practice of the parties at variance with the P&P, shall constitute a waiver of the Company's right to demand exact compliance with the Agreement and/or the P&P.

 

The Company's waiver of any particular default by Distributor shall not affect or impair the Company's rights with respect to any subsequent default. Nor shall it affect in any way the rights or obligations of any other Distributor. No delay or omission by the Company to exercise any right arising from a default effects or impairs Company's rights as to that or any subsequent or future default. Waiver by the Company can be effected only in writing by an authorised officer of the Company.

 

12.08 Governing law

The Agreement, the P&P and the Compensation Plan shall be governed by the laws of Hong Kong Special Administrative Region of the People’s Republic of China.

 

12.09 Jurisdiction

Any dispute, controversy or claim arising from or in connection with the Agreement, the P&P and/or the Compensation Plan or the breach termination or invalidity thereof (herein after called the “Matter”), shall first be sought to be resolved amicably between the Distributor concerned and the Company. If the Distributor and the Company cannot resolve the Matter within sixty (60) days from the date the Matter was first brought to the attention by one party to the other, the Matter shall be settled by arbitration in Hong Kong under the UNCITRAL Arbitration Rules in accordance with the HKIAC Procedures for the Administration of International Arbitration in force at the date of this contract. There shall be only one arbitrator. In relation to all matters referred to arbitration under this subclause, the right of appeal under section 23 of the Arbitration Ordinance Chapter 341 of the Laws of Hong Kong and the right to make an application under section 23A thereof are hereby excluded.

 

12.10 Entire Agreement

The Agreement, the P&P and the Compensation Plan together constitute the entire Agreement between a Distributor and the Company.

 

12.11 Severability

If at any time any provision of the Agreement and/or P&P is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions of the Agreement and/or P&P under the law of that or any other jurisdiction, nor the legality, validity or enforceability of such provision under the law of any other jurisdiction shall in any way be affected or impaired thereby.

 

12.12 Notices and communication

Each notice, demand or other communication to be given or made under the Agreement, the P&P and/or the Compensation Plan by the Company to a Distributor shall be in writing and delivered or sent to the relevant party at his/her last known address or email address on file. Any notice, demand or other communication to the Company shall be sent or delivered to the Network Compliance Department of the Company at its Office in Hong Kong or by email to ncd@qnet.net . Any notice, demand or other communication so addressed to the relevant party shall be deemed to have been delivered after fifteen (15) days if given or made, provided that, if such day is not a working day in the place to which it is sent, such notice, demand or other communication shall be deemed delivered on the next following working day at such place.

 

12.13 Headings and Table of Contents

Headings and Table of Contents in the Agreement, the P&P and the Compensation Plan are provided for convenience only and they are not part of those documents. They are not to serve as a basis for interpretation or construction of those documents or as evidence of intention of the parties.

 

12.14 Gender, etc.

Unless the context otherwise requires, words importing the singular number shall include the plural number and words importing the masculine gender shall include the feminine or neuter gender and vice versa, and references to persons shall include companies and bodies, corporate or unincorporated.

 

12.15      English Language Prevail

In the event that this Policies and Procedures was translated into another language and that there is any inconsistency of any provision in this Policies and Procedures between the  English version and the translated version, the English version shall always prevail.

 

 

POLICIES & PROCEDURES

APPENDIX

 

COMPENSATION PLAN

 

1.         Title

 

This is the “QNet Compensation Plan” or “CompPlan” as referred to in QNet’s Policies & Procedures (“P&P”). This Compensation Plan provides for the entitlement and calculation of commissions and bonuses of Independent Distributors of QNet.

 

2.         Definitions and interpretation

 

Unless specified herein below, all terms in this Compensation Plan have the same meanings as defined in the P&P.

 

“Activated Direct Referral” means an ID's personally sponsored Downline Independent Distributor who has met the Activation requirements

 

“Activated ID” means an ID who has met the requirements for Activation according to subclause 8.02.

 

“Compensation Level” means the pay level of an Independent Distributor. Commissions and bonuses are paid out according to an ID's compensation level and as provided for in Schedule 3 of this Compensation Plan.

 

“Counter” means a calculating mechanism for a TC and it is on the left and right of each TC, the record of which reflects the balance of UV its Downline Group has accumulated for the purpose of calculating step commission. The counters are either on or off based on the rules described in subclause 8.03.

 

 

“CUV” means Commissionable Unit Volume and refers to the point value of a product that is used to calculate the step commission as well as for the qualification of TCs.

 

“Downline Group” has the same meaning as provided in sub clause 7.02 hereunder.

 

“Inside Leg” means the left Downline branch of a TC if that TC is on the right Downline branch of its immediate Upline or the right Downline branch of a TC if that TC is on the left Downline branch of its immediate Upline. Means the opposite side of the Leg below which the TC is placed

 

“ID Discounted Price” the prices of the Company’s products at which the Company sells to the IDs.

 

“Outside Leg” means the Downline branch of a TC other than its Inside Leg.

 

 “Placement” means the way the TCs are placed in the database of the Company as shown in the Genealogy.

 

“Qualified TC” means a TC to which a QUV and 0.5CUV have been allocated.

 

“QUV” means Qualifying Unit Volume; it refers to the point value of a product that counts towards qualification requirement of a TC.

 

 “Retail Price” means the retail prices of the Company’s products at which the Company sells to Customers.

 

“Retail Profit” means the difference between the Retail Price and the ID Discounted Price of a product of the Company.

 

“Tracking Centre” or “TC” means a position in the Company’s database. Commissions and/or bonuses are calculated with reference to each Tracking Centre.

 

 

3.         Acquisition of TCs

 

3.01      An ID will be granted three (3) TCs when s/he is first accepted as an ID. The three (3) TCs shall appear in the Genealogy in the following configuration: The Primary TC-001 being the uppermost TC has TC-002 connected immediately to its left and immediately to its right TC-003.

 

3.02     An ID has to qualify all his/her TCs before s/he can acquire additional TCs.

 

3.03      For the purpose of acquiring additional TCs and also for the purpose of qualifying a TC, the maximum number of QUV that can be allocated to one (1) TC is one (1).

 

3.04      Subject to sub clause 3.05 immediately below, after having qualified all TCs, an ID can acquire an additional TC or additional TCs by obtaining a positive number of QUV that may be less than one (1) through his/her personal purchase of the Company’s products himself/herself only. The full or part of QUV will thereafter be allocated to that newly created TC.

 

3.05      An ID can only create a maximum of two (2) additional TCs in a single transaction with at least one (1) additional TC having one full QUV allocated to it.

 

 

4.         Placement

 

4.01     A Sponsor has the right to place the Primary TC of an ID whom s/he personally sponsored or a Customer TC of the Customer whom s/he personally sponsored or any additional TCs that is allocated to him/her (meaning everyone decides the placement location of their own 004 and subsequent TC extensions as described under subclause 3.04 herein above, subject to the Rules of Placement as stated herein below.

 

 

5.         Rules of Placement

 

5.01          Each TC can only have two (2) TCs connected below.

 

5.02      Each TC can only have one (1) TC at its immediate Upline.

 

5.03      Subject to sub clause 5.08 below, a Sponsor Upline shall have the sole right to place the Primary TC of an ID whom the Sponsor Upline personally sponsored. Subject to the aforesaid, an ID shall have the right to place any TCs that are allocated to him/her.

 

5.04      Subject to sub clause 5.07 below, an ID can place any TC which he has a right to place under existing TCs in his/her Downline, beginning anywhere under his/her Primary TC (TC-001). But s/he cannot place a TC in a position that is already occupied by another TC.

 

5.05     An ID is not allowed to place any TC above his/her own Primary TC.

 

5.06      An ID cannot place any TC which s/he has a right to place in a position that is not under his/her Primary TC. In other words, s/he cannot place a TC in contravention to subclause 5.08 of the P&P.

 

5.07      All TC extensions subsequent to TC-003 must be ‘stand-alone’ TCs. In other words, they may not have any other TC extensions of the same ID connected to them.

 

5.08      Where the placement instruction from a Sponsoring ID is not clear, erroneous, contrary to the Policies & Procedures (including the Compensation Plan) or s/he gives no placement instruction at all, default placement as stipulated under clause 6 Default Placement Method shall apply.

 

 

6.         Default Placement Method

 

6.01      A TC placed by default shall only be placed, in the Genealogy, in the first vacant position in the Outside Leg of his/her TC or his/her Sponsor’s TC.

 

 

7.         Bonuses and Commissions

 

(a)        All IDs are entitled to Retail Profit. No Customer is eligible for any bonuses and/or commissions although a TC will be placed for their purchase.

 

(b)        Only Activated IDs are eligible for earning commissions and/or bonuses other than Retail Profit.

 

(c)        Any CUV accumulated before activation is not commissioned to selfsame ID unless it occurs in the same Commission Period of activation.

 

(d)        All bonuses and commission payable under this Compensation Plan are based on sale of the Company’s products, not based on the introduction of persons into the Company.

 

 

7.01     Retail Profit:

 

(a)        An ID shall be entitled to the Retail Profit for every product the ID personally and successfully promotes to a Customer who thus purchases it from the Company.

 

(b)        A Sponsor is also entitled to the Retail Profits from the first personal purchase (which may include more than one product) at Retail Price by his personally sponsored Downlines.

 

7.02     Step Commission

 

(a)        Step Commissions are paid to IDs based on CUV accumulated from the sales of products made by Customers or IDs. Only an Activated ID is eligible for Step commission.

 

(b)        CUV will be assigned to each type of product and the same types of products may be assigned different units of CUV.

 

(c)         Upon the sale of a product, the Company shall credit a certain number of CUV, which shall be equal to the CUV of that product, to one of the TCs or the CUV bank of an ID who either purchased the product himself/herself or successfully promoted the sale of the product to a Customer. In the case of any product sold to a Customer, the Company shall credit the CUV assigned to that product to a CUV bank of the ID who successfully promoted the sales of the product and the ID shall allocate the CUV so obtained within seven (7) days to his/her TC.

 

(d)         In the Genealogy, the TCs in the Inside Leg of a particular TC represent a Downline Group of that particular TC. The TCs in its Outside Leg represent another Downline Group. In other words, every TC should have one (1) Downline Group in its Inside Leg and one (1) in its Outside Leg.

 

(e)         For every TC, there is one (1) Counter recording the accumulation of CUVs of each of its Downline Group.

 

(f)         Commission shall be calculated for each TC based on the total CUV accumulated in both Downline Groups of a TC as shown it its Counters and according to Schedule 1.

 

(g)         Commission is calculated daily but only paid out weekly. At the end of each day in a Commission Period, commission payable to a TC shall be calculated and corresponding CUVs shall be deducted from each Downline Groups of that TC.

 

(h)         There is a maximum daily step commission allowable for each compensation level of Independent Distributors as prescribed in Schedule 1. Any CUVs accumulated within a single day in a Commission Period after corresponding daily maximum step commission for that commission period has been reached shall be forfeited and shall not be counted for any step commission payable to the ID.

 

7.03      Quick Start Commission

 

(a)        Subject to (b) immediately below, the Company shall pay a newly registered ID a Quick Start Commission if the ID can qualify and activate his/her Tracking Centre within four weeks from his registration date. However, Quick Start Commission does not apply to self-activation (i.e. having TC-001, TC-002 and TC-003 fully qualified).

 

(b)        If the Company has paid an ID a Quick Start Commission, it shall have a right to recoup the Quick Start Commission from the step commission the ID earned, normally in the first step of his/her first step commission cycle.

 

(c)        The amount of Quick Start Commission shall be as stated in Schedule 2.

 

 

7.04      Change of Bonuses and/or Commissions

 

The Company may, at its sole discretion, replace the Schedules to this Compensation Plan or amend them to change the method or amount therein or may add or remove anything to or from the Schedules.

 

Where the Company intends to replace, change or delete the Schedules to the Compensation Plan, it shall give a reasonable time of prior notice to IDs by publishing the said change on its official web. The new replacement, change or deletion shall take effect immediately upon the expiry of the reasonably timed notice period.

 

8.         Activation and Qualification

 

8.01     Qualification:

 

(a)        For qualifying a TC, an ID can only use the QUV or CUV assigned to a product that s/he purchased personally or that s/he successfully promoted to a Customer.

 

(b)        An ID can qualify his/her TC by allocating 1 QUV and 0.5 CUV to that particular TC. In other words, a TC is considered a qualified TC when it has 1 QUV and 0.5 CUV allocated to it.

 

(c)        An ID has to qualify his/her Primary TC (001) before s/he can qualify his/her other TCs.

 

8.02     Activation:

An ID can activate all his/her TCs by having (i) at least one (1) Qualified Direct Referral placed on each Leg of his/her Primary TC (001), his Secondary TC (002) or his/her Secondary TC (003); or (ii) having his/her Secondary TCs (002) and (003) both qualified. However, an ID is only activated after s/he qualifies at least his/her Primary TC. All Qualified Direct Referrals placed by him/her before his/her qualifying any of his/her TCs shall be disregarded for the purpose of his/her activation.

 

8.03      The Counters of a TC will only be turned on after it is qualified and its ID is activated.

 

 

9.         Promotion

 

9.01      There are five (5) compensation levels of IDs for the purpose of awarding step commission. The initial level has no specific title thus may be referred to as merely Independent Distributor. Thereafter the ascending order is Associate Level, Senior Level, Executive Level and Presidential Level

 

9.02     IDs can be promoted to a higher compensation level by acquiring the minimum number of Activated Direct Referrals for each compensation level. The minimum requirements for the five (5) compensation levels are as provided in Schedule 3.

 

 

SCHEDULE 1

 

 

Step Commissions

 

 

	Step commission
	Volume needed (CUV)
Step	Left Downline Group	Right Downline Group	Commission (USD)
I	3	3	250
II	3	3	250
III	3	3	250
IV	3	3	250
V	3	3	250
VI	3	3	10 points E-Voucher
Total CUV	18	18	1,250 + 10 points E-Voucher

Note: * E-Voucher is worth 10 cycle points and can be used only

             to redeem products in the QNet Redemption Store

 

 

Maximum Weekly Step commission

 

Compensation Level	Maximum Weekly Step Commission per Tracking Center [cash (USD) + e-voucher points ]
Activated Level	4,000 + 40 points
Associate Level	6,250 + 50 points
Senior Level	8,250 + 70 points
Executive Level	10,250 + 90 points
Presidential Level	12,500 + 100 points

 

 

 

SCHEDULE 2

	Commission (USD)
Quick Start Commission	50 (ONLY)

 

 

SCHEDULE 3

 

Minimum requirements for each compensation level

 

Compensation level	Minimum number of  Qualified Direct Referrals required
Activated Independent Reprsentative	2
Associate Independent Distributor	6
Senior Independent Distributor	12
Executive Independent Distributor	18*
Presidential Independent Distributor	24*

Note: * To achieve Executive and Presidential Levels, your qualified referrals must also be activated and in valid Membership.

 

 

 

 

 

Last Updated: 1^st January 2010

 

 

 

 

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