Page 56 - MY_English HandBook

Glossary of Defined Terms

Product Statement Refers to a statement about the nature or efficacy of the product.

Re-purposed Refers to a new product which is modified, tailored, with added patterns or designs etc., with the
products Company’s product as the material, which is different from the original product. “Different” is not
limited to the change in the purpose but also include the change in the appearance of the product.

Rescission of Refers to a situation when a legal or contractual right to terminate the contract arises after the
Agreement formation of a legal relationship, the party with the right to rescind the contract may do so and
render the contract void and invalid.

Termination of Refers to a situation when a legal or contractual right to terminate the contract arises after the
Agreement formation of a legal relationship, the party with the right to terminate the contract may do so and
render the contract invalid after termination (the validity of the contract before termination is not
affected).

Incentivized Programs Refers to the incentive programs or activities organized by the company such as domestic and
overseas incentive tours, lectures, and banquets which are not within the Compensation Plan.

Commission Refers to the remuneration paid to Independent Distributors by the Company based on the total
number of products sold by the Independent Distributors and their organizations in compliance with
all provisions of the Compensation Plan. The Commission is paid on a monthly basis.

Compensation Plan Refers to the Company's policies and requirements for the payment of commission to Independent
Distributors.

Direct Selling Refers to the multi-level business model of upline and downline system, developed by the
Independent Distributors based on the Company’s Business Handbook. The upline and downline
organizations including all their rights belong to the Company.

Title Advancement Refers to promotion from one level to a higher level.

Concurrent Advancement Refers to promotion for the upline and downline within the same organization at the same time

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