Friday, September 7, 2007

Tianshi Code Of Ethics

Distributors should make the introduction and dissemination of Tianshi in accordance with the current company literatures, printed materials of labels on the packages. Any explanation beyond the above scope must be approved by the company in writing

Distributors should realistically present the Tianshi Marketing Plan and clearly explain the required levels and steps towards success

Distributors should not make any negative or disparaging remarks about Tianshi or its products

Distributors should not make any negative or disparaging remarks about other companies or their products

Distributors should consistently do their best to disseminate the conception of Tianshi and engage in no activities that may cause loss to Tianshi or any other independent Tianshi Distributor

Distributors should not use the name of Tianshi or any Tianshi trademarks, materials, Distributor lists, literatures, meetings or any other Tianshi resources to further other business
Distributors should try their best to ensure that customers are satisfied with Tianshi products and services Distributors should carry out all duties of sponsorship and guide the sponsored Tianshi Distributors to expand their business Distributors should respect the personal rights of other Distributors and customers Distributors should abide by all laws, rules, regulations and ordinances that are applicable to the operation of Tianshi Business

Regulations over Distribution Basic principles Purpose To authorize Distributors the right to sell the Tianshi products on Distributors and set forth the right, obligations, responsibilities and duties on the marketing of products for Tianshi and its Distributors. Representations 1. Tianshi represents: that it will manufacture products of high quality for the consumers and ensure the normal product supply and offer good service, effective assistant tools, training and propagating materials and grant bonuses to Distributors poeriodically.2. The Distributor represents: a) to propagate Tianshi as an independent Tianshi Distributor in accordance with all terms and conditions of these Regulations. b) To treat fairly and honestly with Tianshi, Tianshi Distributors and Tianshi customers. Good Faith Tianshi is committed to quality products and services, and the resolute observations of business norms. Although Distributors are generally free to operate their business, Tianshi commitment to good business practice requires that every Distributor should promise to act in good faith at all times. Establishing a Distributorship Initial Qualifications1. In order to become authorized Distributor of Tianshi products, an applicant must be a legal resident of India.
2. A Distributor may run his/her business individually or jointly with his/her spouse or partner. The Tianshi Distributorship can not be owned by more then two persons.
3. An applicant should submit a filled Tianshi Distributor Application Form, purchase the latest Distributor literatures and read carefully the Business Manual and the main product brochures contained in it.
4. An independent Tianshi Distributor can not individually or jointly own the Distributorship owned by others, or participate as a partner, owner, keeper or director of another Tianshi Distributor. In other words, one Tianshi Distributor can only participate in one Tianshi Distributorship at any given time.
5. A Tianshi Distributor represents his/her intention to establish a Tianshi Business by signing the Distributor Application Form and promises to work with other Distributor towards the success of Tianshi Business.

Independent Business Relationship Under no circumstances shall the Tianshi Distributors be considered as agents or employees of Tianshi. A Distributor is an independent contractor whose success or failure depends on his/her independent efforts. Distributors may decide on the business time and method of marketing on the basis of the Business Manual but not allowed to change Tianshi products in any way. Neither the Company nor the Distributor will represent the other parry, sign any contract or make promises in the name of the other party. For all the Distributors, the expenses for the development of the Tianshi Business should be borne by themselves, including the expenses on travel, entertainment, office, employee’s accountant and development. All the Distributors should be liable for relative taxes for their independent business, and these taxes may be deducted from their bonuses and paid by the company on the basis of the regulations issued by the local tax department. Distributors must abide by the relative laws, rules and regulations as business operators. Distributors should consult the local relevant authorities to ensure the legal operation of their business. Operating a Distributorship Authorized Marketing Region unless specifically authorized by Tianshi in written form, any Distributor may only sell the Tianshi products purchased from the local Tianshi Marketing Office and the products can only be sold to consumers in the authorized marketing areas. Pricing And Ordering All the Distributors shall purchase the Tianshi products from Tianshi at the Retail prices. Tianshi has the right to adjust the prices any time and will, as much as possible, notify the active Distributors of the adjustments. Distributors should order the Tianshi products according to the company’s regulated methods and procedures. No Relabelling or RepackagingTianshi has the responsibility to ensure that all the packages and labels of the Tianshi products comply with all applicable laws and regulations. Before selling, Distributors are not allowed to repack or relabel the products purchased from the company.

Bonus Restrictions on Retailing Bonus to Distributors is decided by the corresponding BV points (given to particular products) which are calculated in accordance with the Marketing Plan of a particular Distributor and his/her marketing network.
The amount of bonus depends upon the latest Tianshi Marketing Plan. Distributors can consult this Business Manual. Tianshi has the right to amend a part or the whole Marketing Plan any time.
Bonus granting date is decided in accordance with the terms of the Marketing Plan on a monthly or other periodic basis. Please consult the related part of this Business Manual for details on the bonus granting method and accounting service fees.
Advertising and Use of Trademarks1. In the advertisement of Tianshi products or Marketing Plan through media, Distributor should observe the following rules: a) Tianshi Distributors should use the exact words, photographs, graphics, trade marks etc. complying with the Tianshi Distributor’s latest Business Manual. b) Any difference in content or innovations can only be implemented upon the writ ten approvals by the Company.2. Distributors are not allowed to directly or indirectly use or permit others to use the registered trademarks or the Tianshi logotypes or any other registered names of Tianshi products.
These limitations are also applicable to the utilization on Internet, Email and other electronic media.
Distributors are not allowed to print any of the Tianshi logotypes on stationery or business card. In case of real need, they should get the authorization from the Com pony, but no amendment is allowed. Tianshi has the right to cancel the authorization according to the concrete conditions.3. Distributors are not allowed to sell or propagate non Tianshi products in the name of Tianshi, its agents or its employees.4. The Tianshi trademarks, name and intellectual property rights are owned outright by the Company, and Distributors cannot derive any benefit by the use of them. Mean while, without the permission of Tianshi, the Distributors are not allowed to dupli cate or publish Tianshi literatures, record tapes or video tapes. 5. If any Distributor finds that the Tianshi trademarks are illegally used, or the Tianshi copyrights or intellectual property rights are infringed, the Distributor should inform the Company in writing, for the Company to take the necessary legal action to protect its rights.


Restrictions on the Presentation of Tianshi Products and Marketing Plan Distributors shall accurately introduce Tianshi products and Marketing Plan. This obligation includes the following aspects:

a) Distributors shall neither mis-state nor omit any significant facts about the Tianshi Marketing plan, and must present the relevant parts of the Business Manual to the prospective Distributors.

b) Distributors shall be clear that the Tianshi Business is based on the sales of Tianshi products, and that Tianshi Distributors will not be successful merely by recruiting new Distributors without marketing.

c) Distributors shall not exaggerate the presentation to those who wish to join Tianshi Business, nor guarantee profit and fixed income to them. It should be stated that Distributors will only be successful through hard work.

d) Unless they are licensed medicine practitioners, Distributors shall not attempt to diagnose or treat the ailments of their Up lines or Downlines.

e) Distributors shall not make any presentations for any Tianshi product other than those found in current Tianshi literatures and labels. All statements regarding Tianshi products and their usages must conform in every way to current material about Tianshi products.

Sponsorship Restriction Sponsor is the person who introduces to another the Tianshi Marketing Plan. Conducting Other Business Distributor who is engaged in the marketing activities of non-Tianshi Business is not allowed to directly or indirectly canvass or induce another Tianshi Distributor to sell or buy these non-Tianshi products. Distributors should not go in for other business through the relationship between him/her and other Distributors or materials obtained from Tianshi. Any action of this kind, if found by Tianshi, will lead to the termination of the Distributorship. Developing the Tianshi Business In establishing the Tianshi Business, a Distributor needs to sponsor others to become Distributors of Tianshi products.
Sponsoring requires the Distributors to introduce Tianshi products and literatures to prospective Distributors to train and maintain contact with them and answer their questions. Representations to prospective Distributors should accurately present Tianshi products and Marketing Plan.
Distributors must comply with the following rules:1. Distributors must use only materials about Tianshi prepared or approved by Tianshi only.

2. a) Distributors should not exaggerate their sales, income or benefits, or make any undocumented, illegal promise.

b) Distributors may only publicize their personal income and bonuses, and ex- plain that they can not guarantee the income for prospective Distributors.

c) Distributors should abide by the local laws, and make known their average income and sales in necessary.

3. Distributors should be honest and not make inflated presentations when they introduce the bonuses of travel and car they receive from the Company.

4. Distributors should explain that the retailing or marketing of Tianshi products is an essential element of the Marketing Plan.

5. The sponsoring Distributors should be sure that the prospective Distributors have the latest Tianshi Business Manual, enabling them to obtain an in-depot under standing of Tianshi, and state clearly to all prospective Distributors that only with time, energy and effort shall they enjoy the benefits listed in the Marketing Plan. Training New Tianshi Distributors To qualify as a sponsor of new Distributors, a sponsor is obliged to provide training and instruction. Double Sponsoring No Distributor may be sponsored by more than one Distributor. A Distributor and his/her spouse sponsored by two different sponsors simultaneously also means “Double Sponsoring”, and the sponsorship of the latter will be terminated by the Company. Termination of Distributorship Voluntary Termination Distributor who desires to terminate his/her Distributorship must inform Tianshi in a written notice. Unless a Distributor has requested a refund for unsold inventory in conjunction with a voluntary termination under this rule, he/she will not be allowed to join Tianshi Business directly or indirectly within twelve (12) months from the date of his/her voluntary termination. Involuntary Termination Any violation of the Regulations over Distribution will lead to the termination of Distributorship. Excuse for Non PerformanceTianshi will not be held responsible for delays and failures in performance due to force majeure, including, but not limited to, strike, labor dispute, riot, earthquake, war, flood, fire, epidemic or government decree or order. Assignment and Delegation Distributors may not by any means, assign his/her Distributorship or delegate his/her performance without the prior written consent of Tianshi. Any attempted assignment or delegation without such consent will be held invalid by Tianshi.

Amendment The Regulations over Distribution are set down to preserve the benefits of all independent Tianshi Distributors. Tianshi reserves the right to amend, modify, supplement or delete all or any part of the Regulations to achieve the goal of the Tianshi Marketing Plan and maintain the benefits and the whole profits of the Company. Tianshi will inform all Tianshi Distributors of any change, through notice and other media. Quality WarrantyTianshi warrants that the quality of Tianshi products comply with the high quality standard requirements. Upon receiving a written application and explanation, the Company will exchange any defective product or refund the full purchase price according to the relevant rules.Indemnity1. The Company protects the legal rights of its consumers and believes that the products are of high quality.

2. If a consumer is harmed by health from consuming or using Tianshi products, he/ she has the legal right to get indemnity upon the appraisal by relevant authorities and presentation of legal certificate.

3. When consumer’s legal rights are infringed, they may seek solutions in the follow ing ways:

a) Consulting with Distributors

b) Consulting with Tianshi

c) Arbitral solution

5. Tianshi has the right to investigate and affix the responsibility, according to the law, to those who intentionally defame Tianshi or its products.


Death or Incapacity Upon the death or incapacity of a Distributor, all of his/her benefits and interests, listed in the Operating Rules for Tianshi Distributors, will be inherited by his/her legal successor. Tianshi will transfer the Distributorship to the legal heir, guardian, trustee or other successor after receiving the relevant death certificate or court verdict. The legal successor should sign the Distributor Application Form and agree to abide by all its rules. However, Tianshi will not transfer the ownership if the successor does not meet the Distributorship to another person and Tianshi will continue to grant bonus, if any in the name of the original Distributor. Violation, Enforcement and Resolution Procedures. When a Distributor finds a violation of these Regulations, he/she should point out in time to the relevant authorities. The violator should also have a more profound understanding of the Regulations and try to avoid such kind of con duct in the future.

B. If the violating Distributor continues to operate his/her business in disregard of the Regulations, Distributors who know the details should then report the matter to Tianshi by sending a letter which states the nature of the violation, the violat ing Distributor’s name, address and telephone number, and all the relevant materials.

The reporter should ensure the truthfulness and reliability of all the material and sign the letter. If there is any false or misleading information, Tianshi will investigate and afire the responsibility.

Tianshi will make a thorough investigation on any violation and offer opportunity for the violating Distributor to defend himself/herself, or consult his/her Uplines or Downlines. Tianshi will also send a formal notice to the violating Distributor, asking him/her within ten (10) days from the time when he/she receives the notice, to submit his/her personal viewpoints with attached evidence for the review of the Company. Afterwards, Tianshi will pronounce its verdict correspondingly.


Agreement Of Tianshi Distributorship1. Distributors should sign the Distributor Application Form accurately and ensure that all the necessary formalities for being engaged in the Tianshi business are in order.

2. The Distributors is responsible for all government imposed taxes and levies.

3. Distributors are neither employees nor agents of Tianshi. The Distributors have a contractual relationship with Tianshi which gives them only the limited right to sell the Tianshi products, recommend new clients to join the Tianshi business and win related rewards according to the bonus system of the Company.

4. The provision of the Tianshi Business Manual govern the contract between Tianshi and the Distributor. Tianshi is nor liable for any contrary term held out orally or otherwise, by any person to a prospective Distributor, contrary to or in addition to the provisions of the Tianshi Business Manual.

5. Tianshi guarantees to offer the Distributors the products, which meet with relevant stipulations and the promised quality requirements and standards.

6. Tianshi and the name of its subsidiary framework, its trademarks and the logo types are owned outright by the Company and are protected by laws. No other individual, corporate, or entity can use them unless authorized in writing by the Company.

7. The Company has the power to deduct the relevant expenses owed by the Dis tributor from their bonus.

8. Distributors shall not display or sell the Company’s products in any retailing out let.

9. Distributors must buy the products from the company and sell them only at the prices prescribed by the company and not at any prices, which are lower or higher than the uniform prices.

10. Distributors should sell the products according to the literatures and propa ganda material aids provided by the Company. Distributors are forbidden from preparing the selling materials by himself/herself without the written permission of the Company.
Any dispute between the Company and Distributors will be handled in accor dance with relevant laws of the country of the Distributor or in accordance with any arbitration clause which may be specified.

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