ZHULIAN GOLDEN BUSINESS PLAN
Transcription
ZHULIAN GOLDEN BUSINESS PLAN
ZHULIAN GOLDEN BUSINESS PLAN ZHULIAN GOLDEN BUSINESS PLAN ZHULIAN GOLDEN INCENTIVES DS SE SM SSM DSM CDM RCM RCD Retail Profit (±15% - 20% of DP) Performance Bonus (3% - 22% of BV) Personal Group Achievement Bonus (7% of BV) Leadership Development Bonus (21% of BV) Diamond Achievement Bonus (7% of BV) Car Fund (3% of BV) Diamond Exclusive Bonus (2% of BV) Diamond International Forum Royal Achievement Bonus (2% of BV) RCD Cash Award (A one-time cash award of RM50,000) RETAIL PROFIT (±15% - 20% of DP) All Distributors are eligible to enjoy a RETAIL PROFIT of approximately 15% - 20% from sales of the Company’s products as the Distributor Price is ±15% - 20% less the Retail Price. (Please refer to Page 7 for full details of this incentive.) PERFORMANCE BONUS (3% - 22% of BV) All Distributors are eligible to enjoy a PERFORMANCE BONUS which is equivalent to 3% - 22% of Personal Group BV earned in the sales month with a minimum Personal PV of 300. (Please refer to Page 7 for full details of this incentive.) PERSONAL GROUP ACHIEVEMENT BONUS (7% of BV) All Distributors ranking SE and above who meet the “Collectively-qualified 5400” condition are eligible to enjoy the PERSONAL GROUP ACHIEVEMENT BONUS which is derived from 7% of the Company’s Network BV. (Please refer to Page 10 for full details of this incentive.) 01 ZHULIAN GOL D EN BUSINESS PLAN LEADERSHIP DEVELOPMENT BONUS (21% of BV) All Distributors ranking SE and above who meet the “Collectively-qualified 5400” condition and achieve the sales volume of ONE (1) or more QL are eligible to enjoy the LEADERSHIP DEVELOPMENT BONUS which is derived from 21% of the Company’s Network BV. (Please refer to Page 11 for full details of this incentive.) DIAMOND ACHIEVEMENT BONUS (7% of BV) All Distributors ranking DSM and above who meet the “Collectively-qualified 5400” condition and achieve the sales volume of FOUR (4) or more QL are eligible to enjoy the DIAMOND ACHIEVEMENT BONUS which is derived from 7% of the Company’s Network BV. (Please refer to Page 14 for full details of this incentive.) CAR FUND (3% of BV) All Distributors ranking DSM and above who meet the “Self-qualified 5400” condition and achieve the sales volume of SIX (6) or more QL for THREE (3) consecutive sales months are eligible to apply for the CAR FUND which is derived from 3% of the Company’s Network BV. (Please refer to Page 15 for full details of this incentive.) DIAMOND EXCLUSIVE BONUS (2% of BV) All Distributors ranking DSM and above who meet the “Collectively-qualified 5400” condition and achieve the sales volume of SIX (6) or more QL among which TWO (2) of them having achieved the sales volume of QSM or Distributor of higher position are eligible to apply for the DIAMOND EXCLUSIVE BONUS which is derived from 2% of the Company’s Network BV. (Please refer to Page 21 for full details of this incentive.) DIAMOND INTERNATIONAL FORUM This is a privileged incentive for the BEST of the BEST among Distributors ranking DSM and above in the Company which enables the qualified Leaders to bring along their spouse to attend DIAMOND INTERNATIONAL FORUM held at overseas destination. For 1st to 3rd time Qualifiers, the qualifying condition is having maintained a Personal PV of 300 and the sales volume of SIX (6) or more QL in any SIX (6) sales months within a calendar year. For those who want to qualify for the 4th time or more, they must either maintain the condition mentioned above in any NINE (9) sales months within a calendar year OR maintain a Personal PV of 300 and the sales volume of SIX (6) or more QL among which TWO (2) of them having achieved the sales volume of QSM or Distributor of higher position in any SIX (6) sales months within a calendar year. (Please refer to Page 23 for full details of this incentive.) ROYAL ACHIEVEMENT BONUS (2% of BV) ROYAL ACHIEVEMENT BONUS derived from 2% of the Company’s Network BV is distributed among “Collectively-qualified 5400” Royal Leaders (RCM and RCD) who managed to achieve the sales volume of TEN (10) or more QL among which FOUR (4) of them having achieved the sales volume of QSM or Distributor of higher position in any TWO (2) sales months within a quarter period. (Please refer to Page 24 for full details of this incentive.) RCD CASH AWARD (A One-time Cash Incentive of RM50,000) RCD CASH AWARD is a one-time cash award of RM50,000 to be given in a lump-sum during the Company’s national convention to all newly promoted Royal Crown Directors (RCD) as due recognition for their success of achieving the highest ranking in ZHULIAN’s hierarchy. (Please refer to Page 25 for full details of this incentive.) 02 ZHULIAN GOL D EN BUSINESS PLAN INTRODUCTION Welcome to the golden world of ZHULIAN and congratulations on your smart choice in choosing one of the most dynamic and fast expanding Multi-Level Marketing companies in the region. Established in Malaysia since 1989, ZHULIAN has grown rapidly as a leading regional player in the Multi-level Marketing industry and today comprises an integrated group of companies that is actively involved in the development, manufacturing and marketing of an extensive range of premium consumer products. The impressive success of the Group has prompted the public listing of its investment holding company, ZHULIAN CORPORATION BERHAD in the Main Market of Bursa Malaysia in 2007. Throughout the years, ZHULIAN has taken pride in creating thousands of successful Distributors as well as creating an extensive distribution network that spans the Southeast Asian region with a solid presence in Malaysia, Thailand, Indonesia and Singapore. ZHULIAN has also been providing dynamic personal development and leadership training, enhancing powerful career building and enrichment opportunities in creating a brilliant future for unlimited success and achievements. This ZHULIAN GOLDEN BUSINESS GUIDE is specially designed to guide you towards the path to unrivalled success - providing the key to the realisation of your wildest dreams and ensuring a future filled with golden success and amazing achievements. It contains detailed explanations and clear examples on the mechanism of ZHULIAN’s equitable, dynamic and proven GOLDEN BUSINESS PLAN that has successfully changed and dramatically improved the lifestyles of countless Distributors across the region. With a thorough understanding of the concepts, modes and goals involving rank promotion, achievement of bonuses, incentives, recognition, Distributor ethics, operational policies, procedures, rules and regulations stipulated herein, ZHULIAN Distributors will be better poised to realise the full potential of their golden ZHULIAN career and undergo a total transformation from the ordinary to the extraordinary ! PRINCIPLES OF THE ZHULIAN GOLDEN BUSINESS PLAN The foundation of the ZHULIAN GOLDEN BUSINESS PLAN is built upon the 3S principle: Selling, Sponsoring and Service. Selling Selling 3S Sponsoring Service "Selling" is the bedrock of the ZHULIAN GOLDEN BUSINESS PLAN; "Sponsoring" is the ultimate force to develop the business, while "Service" is the spirit you must uphold in order to persevere in the business. As a Distributor, your income very much depends on your own performance as well as the group performance of your downlines in the sale of ZHULIAN products. Thus, through selling ZHULIAN products and by duplicating your efforts to your downlines, you will be able to achieve success in a sure and methodical manner. Hence, you must always keep in mind that this 3S principle of Selling, Sponsoring or Service must work coherently to ensure the strong and rapid expansion of the golden business network. When you gradually secure a solid business foothold, it will be instrumental in helping you to achieve your dreams and goals. 03 ZHULIAN GOL D EN BUSINESS PLAN BASIC CRITERIA FOR CALCULATION The most important criteria for calculation in the ZHULIAN GOLDEN BUSINESS PLAN are Point Value (PV) and Business Volume (BV). Each ZHULIAN product carries a designated Point Value (PV) and Business Volume (BV). These TWO (2) criteria will be the standards for measuring sales performance, allocation of bonuses, incentives and conditions for promotion. DEFINITION For the purpose of the ZHULIAN GOLDEN BUSINESS PLAN, the following terms have the following meanings: Business Volume (BV) is a numerical figure in the respective country's currency determined by ZHULIAN representing funds derived from sale of products which can be disbursed as bonuses and other incentives. Basically, there are two types of Business Volume (BV):i. Company's Network BV refers to the total Business Volume (BV) of the Company in Malaysia / Singapore which is expressed in Ringgit Malaysia for the computation purpose of bonuses and other incentives at the ZHULIAN International Headquarters (Malaysia). ii. Personal Group BV refers to the total Business Volume (BV) derived from the sale of ZHULIAN products by the Distributor himself plus his downlines for the sales month (excluding the BV of his downlines who have been promoted to the rank of Sales Executive and above in his sponsoring network). Point Value (PV) is a numerical figure representing points allocated for a product to determine the level of recognition, bonuses and other incentives a Distributor is entitled to receive from the sale of ZHULIAN products. Basically, there are three types of Point Value (PV): i. Personal PV refers to the total Point Value (PV) derived from the sale of ZHULIAN products by the Distributor in a particular sales month. ii. Personal Group PV refers to the summation of total Point Value (PV) obtained by the Distributor himself (Personal PV) plus his downlines (Group PV) as the result of sales of ZHULIAN products in a particular sales month (excluding the PV of his downlines who have been promoted to the rank of Sales Executive and above in his sponsoring network). iii. Accumulated Personal Group PV refers to the accumulated sum of Personal PV and Group PV (excluding the PV of his downlines who have been promoted to the rank of Sales Executive and above in his sponsoring network). Distributor Price (DP) is the wholesale price exclusively enjoyed by registered ZHULIAN Distributors. Value per Point is the value obtained from dividing allotted Company Network’s Business Volume (BV) by the total points obtained by all the qualified Distributors at the relevant rank. 04 ZHULIAN GOL D EN BUSINESS PLAN After a Distributor has met the respective promotion standards, in order to qualify for bonuses and other incentives under the ZHULIAN GOLDEN BUSINESS PLAN, the Distributor is required to be either “Self-qualified 5400” or “Collectively-qualified 5400”: i. Self-qualified 5400 means successfully attained a Personal PV of 300 and a Personal Group PV of 5400 without taking into account the “Push-up PV” i.e. group PV being transferred from downline Sales Executives who failed to achieve a Personal Group PV of 5400. (Please refer to PV Compress Method) ii. Collectively-qualified 5400 means a qualifying condition whereby a Distributor attained a Personal PV of 300 and a Personal Group PV of 5400 after taking into account the “Push-up PV” i.e. group PV being transferred from downline Sales Executive who failed to achieve a Personal Group PV of 5400. (Please refer to PV Compress Method) Push-up PV refers to the Point Value (PV) being transferred from downline Sales Executives who failed to achieve a Personal Group PV of 5400 using the Point Value Compress Method. Qualified Line (QL) is the sponsoring line that achieved the sales volume which meets the “Collectively-qualified 5400” condition and irrespective of how many Qualified Sales Executives (QSE) or qualified Distributors of higher positions that appear within the same line, each Qualified Line (QL) is considered only ONE (1) Qualified Line (QL). Qualified Sales Executive (QSE) is the Sales Executive who has met the “Collectively-qualified 5400” condition i.e. achieved a Personal PV of 300 and a Personal Group PV of 5400 after taking into account the “Push-up PV”. Qualified Sales Manager (QSM) is the Sales Manager who has met the following conditions:A) “Collectively-qualified 5400” i.e. having achieved a Personal PV of 300 and a Personal Group PV of 5400 after taking into account the “Push-up PV”; and... B) Achieves the sales volume of TWO (2) or more Qualified Lines (QL). Qualified Diamond Sales Manager (QDSM) is the Diamond Sales Manager who has met the following conditions:A) Having achieved a Personal PV of 300; and… B) Achieves the sales volume of SIX (6) or more Qualified Lines (QL). 05 ZHULIAN GOL D EN BUSINESS PLAN POINT VALUE COMPRESS METHOD Before the Bonus computation process takes place during every sales month, the bonus processing computer system will compress the PV of those Distributors who failed to achieve a Personal PV of 300 upwards, and transfer to the first upline Sales Executive who achieves a Personal PV of 300. (Personal PV of 300 is the minimum requirement for entitlement to all bonuses and other incentives under the ZHULIAN GOLDEN BUSINESS PLAN). After the above mentioned process, the computer system will once again compress those PV which belong to Sales Executives who failed to achieve a Personal Group PV of 5400 upwards, until a Sales Executive or Distributor of higher position is able to achieve a Personal Group PV of 5400 within the line and become “Collectively-qualified 5400” (Before taking the “Push-up PV” into account, his Personal Group PV might be less than 5400). By using this method, ZHULIAN ensures that Sales Executives and Distributors of higher positions will obtain the amount of PV which is compatible to their positions, regardless of the existence of progressive or non-progressive downline Sales Executives in their respective downline network. The Point Value Compress Method applied by ZHULIAN has the objective of fostering co-operation between progressive Sales Executives and non-progressive Distributors of his sponsoring network and also to prevent active Sales Executives' entitlement to bonuses and incentives from being affected by the existence of non-progressive Sales Executives within the network. POINT VALUE ASSURANCE A Personal Group PV of 5400 PV is the minimum requirement for entitlement to most of the bonuses and other incentives as stipulated herein. However, if a Diamond Sales Manager (DSM) or Distributor of higher position is able to achieve the sales volume of SIX (6) or more Qualified-Lines (QL) after taking into account the “Push-up PV” derived from the Point Value Compress Method, the Diamond Sales Manager (DSM) or Distributor of higher position is only required to maintain a Personal PV of 300 to qualify for the bonuses and other incentives under the ZHULIAN GOLDEN BUSINESS PLAN unless otherwise specified, provided that he deducts the total PV from his first level Qualified Sales Executives (QSE) to supplement the inadequacies of his Personal Group PV to be at least 5400. This Point Value Assurance would benefit the sponsoring uplines with strong leadership towards their network. 06 ZHULIAN G ol d en Business Plan 1. RETAIL PROFIT ZHULIAN Distributors are profited directly in terms of Retail Profit from sales of the Company’s products to customers (approximately 15% - 20% of the Distributor Price). For example, if the retail price of a ZHULIAN product is RM120.00, the Distributor Price will be RM100.00 and the retail profit will be at RM20.00. 2. Retail Profit PERFORMANCE BONUS (3% - 22%) Besides the retail profit, a ZHULIAN Distributor's source of income can be his personal and group Business Volume (BV) once their sales performance fulfils the relevant conditions. Performance Bonus (PB) derives from 22% of monthly Company’s Network Business Volume (BV) and it is awarded to Distributors who have shown outstanding performance within their Personal Group. There is no time limit for the accumulation of Personal Group PV and the minimum monthly Personal PV required is only 300. Performance Bonus is disbursed to Distributors at the end of every sales month. Performance Bonus Personal Group Achievement Bonus 2.1. Qualifying Condition To maintain a Personal PV of at least 300. Leadership Development Bonus 2.2. Computation The Performance Bonus entitled to a Distributor is based on the Distributor’s own accumulated PV plus his downlines' accumulated PV. As a Distributor, you should always assist your downlines in duplicating the selling and sponsoring effort which will enable your network to have higher accumulated Group PV, allowing you to obtain a higher bonus percentage (Please refer to the Performance Bonus Schedule below), which also means that you will be able to enjoy more overriding benefits. Diamond Achievement Bonus PERFORMANCE BONUS SCHEDULE Accumulated Personal Group PV 18000 PV and above* 6000 PV and above* 3000 PV and above 1500 PV and above 300 PV and above * Performance Bonus 22% of your total BV 15% of your total BV 10% of your total BV 6% of your total BV 3% of your total BV When your Accumulated Personal Group PV reaches 6000, in the same sales month or any sales month after that, you are required to attain a Personal Group PV of 1000 (including a Personal PV of at least 300) in order to enjoy 15% performance bonus. Subsequently, in the same sales month or any sales month after your Accumulated Personal Group PV achieves 18000, you are required to attain a Personal Group PV of 3000 (including a Personal PV of at least 300) in order to enjoy 22% Performance Bonus. Then, you will also be promoted as a Sales Executive in the following month. Note: A) The accumulated Personal Group PV is inclusive of accumulated sum of Personal PV and Group PV. B) The accumulated Personal Group PV will determine the percentage of Performance Bonus. Whereas the amount of Performance Bonus is determined by the monthly Personal Group BV. 07 Car Fund Diamond Exclusive Bonus Diamond International Forum Royal Achievement Bonus RCD Cash Award ZHULIAN Gol d en Business Plan 1st Sales Month Taking The First Step Retail Profit When your Personal PV for the sales month is 1500PV, your income for the sales month is calculated as below: YOU Performance Bonus Personal Group Achievement Bonus Leadership Development Bonus Diamond Achievement Bonus 1500PV Direct Retail Profit : 20% X 1600DP = RM 320 Performance Bonus : 6% X 1000BV = RM Your Income For The Sales Month = RM 380 60 2nd Sales Month Establish Your Foundation When you are able to sponsor six Distributors (A, B, C, D, E and F), each with a monthly Personal PV of 1500, your income would be as below: - A F YOU 1500PV 1500PV 1500PV Car Fund B E 1500PV Diamond Exclusive Bonus Diamond International Forum Royal Achievement Bonus RCD Cash Award C 1500PV 1500PV D 1500PV Your Personal Group PV for the Sales Month (+) The previous sales month’s Personal Group PV Total Accumulated Personal Group PV : : : 10500PV 1500PV 12000PV Your Performance Bonus Percentage : 15% Total Performance Bonus for the sales month : = RM 1,050 (15% X 7000BV) (–) Performance Bonus payable to downline Distributors Each of your downline’s Personal Group PV for the sales month : 1500PV Your downlines’ Performance Bonus Percentage : 6% = RM 360 A, B, C, D, E and F : ((1000BV X 6% X 6) = RM 690 Your Performance Bonus for the sales month = RM 320 (+) Personal Direct Retail Profit : 20% X 1600DP Your Total Income For The Sales Month 08 = RM 1,010 ZHULIAN G o l d en Business Plan 3rd Sales Month Developing Through Duplication If Distributors A, B, C, D, E and F each possess six Distributors and the sponsored Distributors achieve a monthly personal PV of 1500PV each, then, your income would be as follows : - A 10500PV F YOU 10500PV 1500PV E 1500PV 1500PV C B 1500PV 10500PV D 10500PV 10500PV 1500PV 1500PV 1500PV Retail Profit Performance Bonus Personal Group Achievement Bonus Leadership Development Bonus 1500PV Your Personal Group PV for the Sales Month (+) The previous sales month’s Personal Group PV Total Accumulated Personal Group PV : : : 64500PV 1 2 0 0 0P V 76500PV Your Performance Bonus Percentage : 22% Total Performance Bonus for the sales month : RM 9,460 (22% X 43000BV) = (–) Performance Bonus payable to downline Distributors Each of your downline’s Accumulated Personal Group PV for the sales month : 12000PV Your downlines’ Performance Bonus Percentage : 15% A, B, C, D, E and F : (7000BV X 15% X 6) = RM 6,300 Your Performance Bonus for the sales month = RM 3,160 (+) Personal Direct Retail Profit : 20% X 1600DP = RM 320 RM 3,480 Your Total Income For The Sales Month = Note: The given examples are for reference only. The earnings depicted are not representative of the income the Distributor will earn and the Company makes no guarantees or projections of income and this should not be deemed to be or treated as a representation or claim of earnings of income. For easier calculation, assumptions made for the above examples are as follows: Diamond Achievement Bonus Car Fund Diamond Exclusive Bonus Diamond International Forum 1. If Point Value (PV) is 1500PV, Distributor Price (DP) will be RM1,600 and Business Volume (BV) will be 1000BV. 2. It is not compulsory for a Distributor to attain a Personal PV of 1500, it can be more or less than 1500PV. Royal Achievement Bonus The Significance of the Position of Sales Executive When your accumulated Personal Group PV reaches 18000, if in the same sales month, your monthly Personal Group PV has also attained 3000, you will be eligible to enjoy 22% Performance Bonus. Then, you will be promoted as a Sales Executive in the following month. The position of Sales Executive has great significance because once you have been promoted to the Sales Executive position, your sponsoring network will break away from your upline's network and become an independent network. Hence, you will be considered as the leader of your network by your downlines. 09 RCD Cash Award ZHULIAN Gol d en Business Plan 3. Retail Profit Performance Bonus Personal Group Achievement Bonus Leadership Development Bonus Diamond Achievement Bonus Car Fund Diamond Exclusive Bonus Diamond International Forum Royal Achievement Bonus RCD Cash Award PERSONAL GROUP ACHIEVEMENT BONUS (7%) Personal Group Achievement Bonus (PGAB) derives from 7% of the monthly Company’s Network Business Volume (BV) and it is allotted equally based on the "PV system", to those Sales Executives (SE) and Distributors of higher positions who are able to maintain a strong personal group. Personal Group Achievement Bonus is disbursed to the deserving Distributors at the end of every sales month. 3.1. Qualifying Conditions Sales Executives (SE) and Distributors of higher positions are required to meet the following conditions:A) “Collectively-qualified 5400” i.e. having achieved:i) A Personal PV of 300 or above; and… ii) A Personal Group PV of 5400 or above (inclusive of the “Push-up PV” i.e. Group PV being transferred from downline Sales Executives who have failed to achieve a Personal Group PV of 5400). 3.2. Computation The points for calculating Personal Group Achievement Bonus is based on Personal Group PV you have achieved plus the PV transferred to you using the “PV Compress Method” (Please refer to page 6 for details on its mechanism). For the point computation, please refer to the Personal Group Achievement Bonus Point Schedule below:- PERSONAL GROUP ACHIEVEMENT BONUS POINT SCHEDULE Personal Group PV Personal Group Achievement Bonus Point Achieved 5400 and above * (inclusive of Push-up PV) 0.5 x (Personal Group PV plus (+) Push-up PV) 5400 and above (non-inclusive of Push-up PV) (2 x Personal Group PV) plus (+) (0.5 x Push-up PV) 10800 and above (non-inclusive of Push-up PV) (4 x Personal Group PV) plus (+) (0.5 x Push-up PV) * For Distributor who can only achieve a Personal Group PV of 5400 or above after taking into account the “Push-up PV”, the calculation of Personal Group Achievement Bonus Point is only half (I/2) the sum of his Personal Group PV plus “Push-up PV”. After the Personal Group Achievement Bonus Points of each qualifier have been determined, 7% of monthly Company’s Network Business Volume (BV) is divided by the total Personal Group Achievement Bonus Points of all qualifiers to determine the value per point. Value per Point of Personal Group Achievement Bonus = 7% X Company’s Network BV of the sales month Total PGAB Points of all qualifiers The value per point of the Personal Group Achievement Bonus may differ from month to month, depending on the number of qualifiers and the Company’s Network Business Volume (BV) of that particular sales month. 10 ZHULIAN G o l d en Business Plan The Personal Group Achievement Bonus of the respective Distributor is determined by the value per point of Personal Group Achievement Bonus multiplied by his Personal Group Achievement Bonus Points. Your Personal Group Achievement Bonus of the sales month = Your Total PGAB Points X Value per Point 4. LEADERSHIP DEVELOPMENT BONUS (21%) Leadership Development Bonus (LDB) derives from 21% of the monthly Company’s Network Business Volume (BV) and it is allotted equally based on the "PV system", to deserving Sales Executives (SE) and Distributors of higher positions, who have shown outstanding leadership and endeavoured in developing their downline network in the sales month. Leadership Development Bonus is disbursed to qualified Distributors at the end of every sales month. 4.1. Qualifying Conditions Sales Executives (SE) and Distributors of higher positions are required to meet the following conditions:A) “Collectively-qualified 5400” i.e. having achieved:i) A Personal PV of 300 or above; and… ii) A Personal Group PV of 5400 or above (inclusive of the “Push-up PV” i.e. Group PV being transferred from downline Sales Executives who have failed to achieve a Personal Group PV of 5400); and… Retail Profit Performance Bonus Personal Group Achievement Bonus Leadership Development Bonus Diamond Achievement Bonus B) Achieves the sales volume of ONE (1) or more Qualified Lines (QL). OR Car Fund Diamond Sales Managers (DSM) and Distributors of higher positions who successfully achieves the sales volume to maintain SIX (6) or more Qualified Lines (QL) are only required to maintain a Personal PV of 300 to be entitled to this Leadership Development Bonus, provided that the shortfall of the 5400PV required must be deducted from the 1st level Qualified Sales Executives (QSE)’ Personal Group PV. Diamond Exclusive Bonus 4.2. Computation The points for calculating Leadership Development Bonus is based on the achievement of sales volume according to the number of Qualified Lines (QL) within each of which has at least ONE (1) Qualified Sales Executive (QSE) and Distributor of higher position in the particular sales month. For the computation of points, please refer to the Leadership Development Bonus Point Schedule as shown in the following page:- Diamond International Forum Royal Achievement Bonus RCD Cash Award 11 ZHULIAN Gol d en Business Plan LEADERSHIP DEVELOPMENT BONUS POINT SCHEDULE No. of Qualified Lines Required / Percentage (%) Retail Profit 1 2 3 6 8 10 10 Total No. of Qualified Lines (QL) 1 2 3 6 6 6 - No. of Qualified Lines within each of which has QSE 2 4 6 No. of Qualified Lines within each of which has QSM* 4 No. of Qualified Lines within each of which has QDSM** Performance Bonus Personal Group Achievement Bonus 15% 15% 15% 15% 15% 15% 15% Personal Group PV 5400 (“Collectively-qualified 5400”) 13% 13% 13% 13% 13% 13% 13% Personal Group PV of the 1st level QSE 9% Leadership Development Bonus Minimum Requirement 9% 6% 9% 9% 9% 9% 9% Personal Group PV of the 2nd level QSE 6% 6% 6% 6% 6% Personal Group PV of the 3rd level QSE 4% 4% 4% 4% 5% Personal Group PV of the 4th level QSE 3% 3% 3% 4% Personal Group PV of the 5th level QSE 2% 2% 3% Personal Group PV of the 6th level QSE 1% 2% Personal Group PV of the 7th level QSE Diamond Achievement Bonus * Refers to the number of Qualified Lines (QL) within each of which achieves the sales volume of at least ONE (1) Qualified Sales Manager (QSM) or Distributor of higher position. Car Fund Diamond Exclusive Bonus Diamond International Forum Royal Achievement Bonus ** Refers to the number of Qualified Lines (QL) (apart from*) within each of which achieves the sales volume of at least ONE (1) Qualified Diamond Sales Manager (QDSM) or Distributor of higher position. Example 1 If you are a Sales Executive and one of your downlines has achieved the required sales volume and been promoted as a Sales Executive, both have been “Collectively- qualified 5400” i.e. having achieved a Personal PV of 300 and Personal Group PV of 5400 after taking into account the“Push-up PV”, then you will be entitled to Leadership Development Bonus Points of 15% from your Personal Group PV. In addition, you will also receive 13% out of the downline Qualified Sales Executive (QSE)’s Personal Group PV. The downline Sales Executive will be named as your first level Qualified Sales Executive (QSE). As the downlines of your 1st level Sales Executive has achieved the sales volume for Sales Executive position and has been “Collectively-qualified 5400”, you are eligible to receive 9% out of the Personal Group PV of the 1st level Qualified Sales Executive (QSE)’s downlines for calculating Leadership Development Bonus. The said downlines are named as your 2nd level Qualified Sales Executives (QSE). RCD Cash Award 12 ZHULIAN G o l d en Business Plan Example 2 If a Sales Executive or Distributor of higher position has been “Collectively-qualified 5400” in the sales month and at the same time achieves the sales volume to maintain TWO (2) Qualified Lines (QL), then he can receive 15% out of his Personal Group PV for computing the Leadership Development Bonus, he can also receive 13%, 9% and 6% out of his 1st, 2nd and 3rd level Qualified Sales Executives (QSE)' Personal Group PV respectively. Example 3 If a Sales Executive or Distributor of higher position has been “Collectively-qualified 5400” in the sales month and at the same time achieves the sales volume to maintain THREE (3) Qualified Lines (QL), then he not only can receive 15% out of his Personal Group PV for computing the Leadership Development Bonus, he can also receive 13%, 9%, 6% and 4% out of his 1st, 2nd, 3rd and 4th level Qualified Sales Executives (QSE)' Personal Group PV respectively. Example 4 If a Sales Executive or Distributor of higher position has been “Collectively-qualified 5400” in the sales month, at the same time achieves the sales volume to maintain EIGHT (8) Qualified Lines (QL) among which TWO (2) of them having achieved the sales volume of Qualified Sales Manager (QSM) who have also been “Collectively-qualified 5400”, then he will not only receive 15% out of his Personal Group PV for computing the Leadership Development Bonus, he can also receive 13%, 9%, 6%, 4%, 3% and 2% out of his 1st, 2nd, 3rd, 4th, 5th and 6th level Qualified Sales Executives (QSE)' Personal Group PV respectively. After the Leadership Development Bonus Points of each qualifier has been determined, 21% of the monthly Company’s Network Business Volume (BV) is divided by the total Leadership Development Bonus Points of all qualifiers to determine the value per point. Value per Point of Leadership Development Bonus = 21% X Company’s Network BV of the sales month Total LDB Points of all qualifiers The value per point of the Leadership Development Bonus may differ from month to month, depending on the number of qualifiers and the Company’s Network Business Volume (BV) of that particular sales month. The individual Leadership Development Bonus is determined by the multiplication of the value per point and the individual Leadership Development Bonus Points. Your Leadership Development Bonus of the sales month = Your LDB Points X Value per point Retail Profit Performance Bonus Personal Group Achievement Bonus Leadership Development Bonus Diamond Achievement Bonus Car Fund Diamond Exclusive Bonus Diamond International Forum Royal Achievement Bonus RCD Cash Award 13 ZHULIAN Gol d en Business Plan 5. Retail Profit Performance Bonus Personal Group Achievement Bonus DIAMOND ACHIEVEMENT BONUS (7%) Diamond Achievement Bonus (DAB) derives from 7% of the monthly Company's Network Business Volume (BV) and it is allotted equally based on the "PV system", to deserving Diamond Sales Managers (DSM) or Distributors of higher positions who have successfully fulfilled the required conditions in the sales month. Diamond Achievement Bonus is disbursed to qualified Distributors at the end of every sales month. 5.1. Qualifying Conditions Diamond Sales Managers (DSM) or Distributors of higher positions are required to meet the following conditions:A) “Collectively-qualified 5400” i.e. having achieved: i) A Personal PV of 300 or above... ii) A Personal Group PV of 5400 or above (inclusive of the "Push-up PV" i.e. Group PV being transferred from downline Sales Executives who failed to achieve a Personal Group PV of 5400); and... B) Achieves the sales volume of FOUR (4) or more Qualified Lines (QL). Leadership Development Bonus Diamond Achievement Bonus OR Diamond Sales Managers (DSM) and Distributors of higher positions who successfully achieves the sales volume to maintain SIX (6) or more Qualified Lines (QL) are only required to maintain a Personal PV of 300 to be entitled to this Diamond Achievement Bonus. 5.2. Computation The points for calculating Diamond Achievement Bonus is based on the achievement of sales volume according to the number of Qualified Lines (QL). Please refer to the Diamond Achievement Bonus Point Schedule as shown below:- Car Fund Diamond Exclusive Bonus Diamond International Forum Royal Achievement Bonus DIAMOND ACHIEVEMENT BONUS (DAB) POINT SCHEDULE Number of Qualified Lines Required 4 5 6+ Diamond Achievement Bonus Points 6 8 14 After the Diamond Achievement Bonus Points of each qualifier has been determined, 7% of the monthly Company's Network Business Volume (BV) is divided by the total Diamond Achievement Bonus Points of all qualifiers to determine the value per point. Value per Point of Diamond Achievement Bonus = 7% X Company's Network BV of the sales month Total DAB Points of all qualifiers The value per point of the Diamond Achievement Bonus may differ from month to month, depending on the number of qualifiers and the Company's Network Business Volume (BV) of that particular sales month. The individual Diamond Achievement Bonus is determined by the multiplication of the value per point and the individual Diamond Achievement Bonus Points. RCD Cash Award Your Diamond Achievement Bonus of the sales month = Your DAB Points X Value per point 14 ZHULIAN G o l d en Business Plan 6. Car Fund (3%) 6.1. The Concept The Car Fund (CF) is the 3% of the monthly Company’s Network Business Volume being reserved as an incentive for deserving Diamond Sales Managers (DSM) or Distributors of higher positions to purchase luxury cars. Retail Profit Under this Car Fund Scheme, once you have fulfilled all the relevant conditions, you will be eligible to purchase the luxury dream cars of your choice, for example Mercedes Benz, BMW, Volvo etc. Another interesting feature of this scheme is that even though the Car Fund is helping you to pay the car instalments, you are the one that hold the ownership of the car. Performance Bonus You can also upgrade your car to a more luxurious model, regardless of the price or funding period, if you meet the required conditions of entitlement. In addition, the Car Fund will also cater a sum of money for your car's maintenance costs, road tax, insurance premium, etc. The luxury car owned by you will definitely become a significant symbol of recognition for your achievements and prestigious status in the ZHULIAN Golden Business world. The car not only serves as a unique motivational tool for you and your downlines, it also serves as a very effective publicity tool for highlighting your success as you share the ZHULIAN Golden Business Opportunity with your fellow Distributors. Personal Group Achievement Bonus Leadership Development Bonus 6.2. Qualifying Conditions Diamond Sales Managers (DSM) or Distributors of higher positions are required to meet the following conditions for THREE (3) consecutive sales months: A) “Self-qualified 5400” i.e. having achieved:i) A Personal PV of 300 or above... ii) Personal Group PV of 5400 or above (non-inclusive of the “Push-up PV” i.e. Group PV being transferred from downline Sales Executives who failed to achieve a Personal Group PV of 5400); and… Diamond Achievement Bonus Car Fund B) Achieves the sales volume of SIX (6) or more Qualified Lines (QL). Note: The Distributor who has fulfilled the above-mentioned qualifying conditions for the 1st time shall be entitled for a “One Lump-Sum Deposit” of which the actual amount he is entitled to is based on his network's sales performance during the THREE (3) sales month qualifying period [please refer to Section (6.7.), (6.8.) and (6.9.) for calculation method]. Only the 1st Car Fund recipients are eligible to enjoy this special benefit. 6.3. Application Procedures When a Distributor has fulfilled the above qualifying conditions, the following documents must be submitted to Head Office: i. ii. iii. iv. v. vi. vii. A duly-completed Car Fund Application Form (ZM-55) A photocopy of the Vehicle Invoice A photocopy of the Deposit Receipt A photocopy of the Car Registration Card A photocopy of the Car Insurance Cover Note A photocopy of Hire Purchase Agreement THREE (3) pieces of photos (12.5cm x 17.5cm) of you taken together with your car plus its soft copy image file in a Compact Disc. Your entitlement of Car Fund will be withheld or suspended until the above procedures are fulfilled subject to the time limit specified in Section (6.4.). 15 Diamond Exclusive Bonus Diamond International Forum Royal Achievement Bonus RCD Cash Award ZHULIAN Gol d en Business Plan 6.4. Time Limit for Application Submission Retail Profit Performance Bonus Personal Group Achievement Bonus The application must be submitted within SIX (6) months from the sales month you meet the qualifying conditions, failing which your qualification for receiving Car Fund will be withdrawn, meaning you have to requalify according to Section (6.2.) to reinstate the qualification for receiving Car Fund entitlement. For example, if you have qualified according to Section (6.2.) in the sales month of January to March of the year, you are required to fulfil the application procedures as mentioned in Section (6.3.) by the closing date of September sales month i.e. before the 15th of October. This means as long as the application procedures are not fulfiled, your Car Fund entitlement will be withheld by the Company. If you still fail to comply with the procedures by the 15th of October, your qualification for receiving Car Fund entitlement will be withdrawn. When withdrawal takes effect, all the Car Fund entitlement withheld from you will be forfeited and you have to fulfil the Qualifying Conditions mentioned in Section (6.2.) all over again in order to be qualified for the Car Fund entitlement which is subject to Section (6.7.), (6.8.) and (6.9.). 6.5. Amount Applied Leadership Development Bonus Once the qualifying conditions as mentioned in Section (6.2.) have been met, the eligible Distributor shall fill in the amount of Car Fund in the Car Fund Application Form (ZM-55) which will be calculated based on the following formula: 120% (a) X Car Price (b) – Total Deposit Paid-out To You (c) Diamond Achievement Bonus Car Fund Diamond Exclusive Bonus Diamond International Forum Royal Achievement Bonus Note: a) The extra 20% is to provide for your car's annual expenses such as maintenance costs, road tax, insurance premium etc. b) The Car Price herein is defined as “on-the-road price” which includes the cost of the vehicle (non-inclusive of optional accessories), and other charges such as vehicle registration fee, road tax and insurance premium. The total sum of the car price must not be less than RM80,000.00. c) If you have successfully met the qualifying conditions as mentioned in Section (6.2.) for the 1st time, you will be entitled to obtain a “Deposit” paid to you in a “Lump-Sum”. The actual amount that you are entitled to receive depends on your network's sales performance during the THREE (3) sales month qualifying period [please refer to Section (6.7.), (6.8.) and (6.9.) for the calculation method]. Only the 1st Car Fund recipients are eligible to enjoy this special benefit. 6.6. Approval Procedure After the monthly bonus processing is finalised, approval will be granted to those Car Fund Applicants who have fulfilled all the conditions. Thus, if you have submitted the relevant documents not later than the 15th day of the month, your Car Fund entitlement which is based on your business performance will be allocated to you at the end of the sales month. 6.7. Computation RCD Cash Award Your entitlement for Car Fund will be directly proportionate to your business performance. The calculation method of Car Fund Points is as follows:- 16 ZHULIAN G o l d en Business Plan Monthly Car Fund (CF) Points = 2.50% X your Personal Group PV (“Collectively-qualified 5400”) (+) 1.50% X Personal Group PV of the 1st level QSE (“Collectively-qualified 5400”) (+) 0.50% X Personal Group PV of the 2nd level QSE (“Collectively-qualified 5400”) (+) 0.20% X Personal Group PV of the 3rd level QSE (“Collectively-qualified 5400”) (+) 0.10% X Personal Group PV of the 4th level QSE (“Collectively-qualified 5400”) (+) 0.05% X Personal Group PV of the 5th level QSE (“Collectively-qualified 5400”) After the Car Fund Points of each qualifier has been determined, 3% of the monthly Company’s Network BV reserved for the Car Fund is divided by the total Car Fund Points of all qualified recipients to determine the value per point. Value per Point of Car Fund = 3% X Company’s Network BV of the sales month Total CF Points of all qualifiers The value per point of the Car Fund may differ from month to month, depending on the number of qualified recipients and the Company’s Network Business Volume (BV) of that particular sales month. The individual Car Fund of the sales month is determined by the multiplication of the value per point and the individual Car Fund Points. Car Fund is disbursed to the qualified recipients at the end of every sales month. Your Car Fund for the sales month* = Your Total CF Points X Value per point *Subject to section (6.8.). Retail Profit Performance Bonus Personal Group Achievement Bonus Leadership Development Bonus Diamond Achievement Bonus Car Fund 6.8. Monthly Entitlement Limit Regardless of each Car Fund qualifier’s rank or the funding period, the maximum monthly entitlement for Car Fund is RM8,000.00. Please remember that the respective Car Fund recipient will only receive the monthly Car Fund entitlement based on his monthly sales performance until the amount stated in the Car Fund Application Form (ZM-55) is “Fully Paid-up”. 6.9. Conditions for Monthly Entitlement Diamond Sales Manager (DSM) and Distributor of higher position whose Car Fund Application Form (ZM-55) has been approved is required to meet either one of the following conditions in order to qualify for the monthly entitlement:a) Diamond Sales Managers (DSM) and Distributor of higher positions who successfully achieves the sales volume to maintain SIX (6) or more Qualified Lines (QL) and a Personal PV of 300, will receive Car Fund which is calculated based on the 100% Car Fund Points, provided that the shortfall of the 5400PV required must be deducted from the 1st level Qualified Sales Executives (QSE)’ Personal Group PV. b) Diamond Sales Managers (DSM) or Distributors of higher positions who have been “Collectively-qualified 5400” (having achieved a Personal PV of 300 and a Personal Group PV of 5400 after taking into account the “Push-up PV”), but only managed to achieve the sales volume to maintain FIVE (5) Qualified Lines (QL), will only receive monthly entitlement of Car Fund which is calculated based on 75% of the Car Fund Points. 17 Diamond Exclusive Bonus Diamond International Forum Royal Achievement Bonus RCD Cash Award ZHULIAN Gol d en Business Plan Retail Profit c) Diamond Sales Managers (DSM) or Distributors of higher positions who have been “Collectively-qualified 5400” (having achieved a Personal PV of 300 and a Personal Group PV of 5400 after taking into account the “Push-up PV”), but only managed to achieve the sales volume to maintain FOUR (4) Qualified Lines (QL), will only receive monthly entitlement of Car Fund which is calculated based on 50% of the Car Fund Points. 6.10. Withdrawal of Entitlement Performance Bonus If a Diamond Sales Manager (DSM) or Distributor of higher position fails to meet any of the monthly entitlement conditions in Section (6.9.) for any SIX (6) consecutive sales months after he has fulfilled the qualifying conditions, then his qualification for receiving Car Fund will be withdrawn. Personal Group Achievement Bonus However, he can fulfil the Qualifying Conditions mentioned in Section (6.2.) all over again in order to be qualified for the Car Fund entitlement which is subject to Section (6.7.), (6.8.) and (6.9.). 6.11. Second Car Fund / Upgrading of Cars Leadership Development Bonus Diamond Achievement Bonus Car Fund Diamond Exclusive Bonus Diamond International Forum Any existing Car Fund recipients can also apply for the Second Car Fund to purchase another car or to upgrade his car if he is able to fulfil the qualifying conditions as mentioned in Section (6.2.) for THREE (3) sales months consecutively again. Once he has met the qualifying conditions to purchase the second Car and so on, his previous qualification for receiving Car Fund shall be automatically withdrawn. Before attempting to qualify for the second Car Fund or onwards by meeting the above-mentioned qualifying conditions, the Distributor must submit a duly completed Car Fund Nomination Notice (ZM-54) to notify the Company and subsequently submit the completed Car Fund Application Form (ZM-55) and other necessary documents and particulars of his upgraded car once again. For the detailed procedures, rules and regulations, please refer to Section (6.3.), (6.4.), (6.6.), (6.7.), (6.8.), (6.9.), (6.10.) and (6.12.). i. Amount Applied After meeting the qualifying conditions as mentioned in Section (6.2.), the eligible Distributor shall fill in the amount of Car Fund in the Car Fund Application Form (ZM-55) which will be calculated based on the following formula: 120% (a) X Car Price (b) – [50% X Accumulated Amount Of Previous Car Fund Paid To You] (c) Note: a) The extra 20% is to cater for your car's annual expenses such as maintenance costs, road tax, insurance premium etc. Royal Achievement Bonus b) The Car Price herein is defined as “on-the-road price” which includes the cost of the vehicle (non-inclusive of optional accessories), and other charges such as vehicle registration fee, road tax and insurance premium. The total sum of the car price must not be less than RM80,000.00. RCD Cash Award c) As mentioned earlier, the car you purchase under this Car Fund scheme belongs to you. As you purchase another car under this Second Car Fund / Upgrading of Car Scheme, you can either maintain your previous car as your asset or to sell it off according to market value. Therefore, in calculation of the amount applied for your latest car, the company will deduct 50% of the accumulated sum of the previous Car Fund paid to you. 18 ZHULIAN G o l d en Business Plan This means that the amount that you can apply for upgrading your car will be the price of the new car plus 20% of the price as "additional cost", minus 50% of the previous Car Fund paid-out amount. The disbursement of Car Fund will be according to the net total until it is “Fully Paid-up”. Example: If the accumulated amount of the previous Car Fund paid to you is RM90,000 and the price of the new car after taking the additional cost into account is RM180,000, then the total amount of Car Fund that you will continue to receive will be:- RM 180,000 (-) RM 45,000 RM 135,000 (The price of your new car plus “additional cost”) (50% of the accumulated amount of previous Car Fund paid to you) The total amount of Car Fund that you will continue to receive 6.12. Rules & Regulations According to the basic concept of the Car Fund, it is provided in order to facilitate the financing of cars purchased by qualified ZHULIAN Distributors. You only need to fulfil the conditions to own a car of your choice and you can also upgrade your car regardless of the price and the funding period. The Car Fund will also cater a sum of money for your car's maintenance costs, road tax, insurance premium, etc. Each Car Fund recipient must comply with the rules and regulations of the Car Fund. If any Car Fund recipient fails to comply with any rules or regulations, the Company reserves the right to withhold* or suspend the payment of the Car Fund entitlement or withdraw** the qualification for receiving Car Fund entitlement, or to recover the paid-out amount of Car Fund or to claim damages from the offending Car Fund recipient. Retail Profit Performance Bonus Personal Group Achievement Bonus Leadership Development Bonus Diamond Achievement Bonus Note : * "Withhold" the payment means to suspend the payment. If a Distributor's Car Fund has been suspended and he fails to comply with Section (6.12.) clause (5) and (6) within the specified period, his qualification for receiving the Car Fund will be withdrawn. ** If one's qualification to receive the Car Fund entitlement has been "withdrawn", he is no longer entitled nor eligible to receive the Car Fund entitlement. This also means that he has to requalify according to Section (6.2.) to reinstate the qualification for receiving Car Fund entitlement which is subject to Section (6.7.), (6.8.) and (6.9.). Every Car Fund recipient must comply with the following rules and regulations:1. The car stated in the Car Fund Application Form (ZM-55) must be purchased by the applicant after he has fulfilled the qualifying conditions of Car Fund as stipulated in Section (6.2.), not before he has met the qualification. 2. Car Fund qualifiers must verify the documents and particulars written in the Car Fund Application Forms (ZM-55). If the Company discovers that any of the particulars given is incorrect or untrue, the Company reserves the right to immediately cease any payments of the Car Fund, demand full refund of the sum(s) that has already been paid to the recipient, withdraw his qualification for receiving Car Fund or take any other actions as deemed appropriate against him. 3. The payment of the Car Fund is strictly in accordance with the amount stated in the Car Fund Application Form (ZM-55) until it is “Fully Paid-up”, based on the Distributor’s monthly sales performance. 19 Car Fund Diamond Exclusive Bonus Diamond International Forum Royal Achievement Bonus RCD Cash Award ZHULIAN Gol d en Business Plan 4. The Company has the right to demand the Car Fund recipient to stick/attach the Company Logo or any printed material with the Company’s trademark for purposes of publicity. The Company has the right to withhold or suspend the payment of the Car Fund to any recipient who fails to abide by this rule. Retail Profit Performance Bonus Personal Group Achievement Bonus Leadership Development Bonus Diamond Achievement Bonus 5. Each Car Fund recipient is only entitled to the payment of Car Fund as explained in clause (3) for the road tax’s validity period of the car. Once the road tax has expired, the Company has the right to withhold or suspend the payment of Car Fund and a suspension period of THREE (3) months from the expiry date of the road tax is given to the Car Fund recipient to comply with clause (6) in order to continue receiving the Car Fund entitlement. 6. The Car Fund recipient is required to submit a photocopy of the Car Registration Card with the road tax renewal stamp together with a photocopy of the on-line road tax renewal receipt (if any) and the latest Car Insurance Cover Note within the suspension period as stipulated in clause (5) in order to continue receiving the Car Fund entitlement; failing which, the Company reserves the right to withdraw his qualification for receiving Car Fund entitlement once the suspension period lapses. 7. Whenever deemed necessary, the Company reserves the right to demand any documents from any Car Fund recipients for investigation purposes. If the recipient is unable to present the valid documents required by the Company, the Company reserves the right to withhold or suspend the payment of Car Fund, or withdraw his qualification for receiving Car Fund entitlement. 8. If the Company determines that the car price stated in the Car Fund Application Form (ZM-55) is doubtful or inconsistent with the market price, the Company reserves the right to reject the application or amend the sum written on the application form. 9. If the Car Fund recipient wishes to sell the car within the effective period, he must notify the Company in writing, in order to withdraw his qualification for receiving Car Fund entitlement. Car Fund 10. In the event that the car is stolen or suffers from irreparable damage within the effective period, the Car Fund recipient must notify the Company in writing, in order to withdraw his qualification for receiving Car Fund entitlement. Diamond Exclusive Bonus 11. Any Car Fund recipient found to have violated clause (9) and (10) after due investigation has been made in response of report, the Company reserves the right to cease the payment of Car Fund immediately and even withdraw his qualification for receiving Car Fund entitlement. Diamond International Forum Royal Achievement Bonus RCD Cash Award 12. Car Fund recipients have the option to upgrade their car, provided that they meet the qualifying conditions for THREE (3) consecutive sales months after notifying the Company in advance using Car Fund Nomination Form (ZM-54), then submit a new Car Fund Application Form (ZM-55), together with relevant valid documents and particulars. [Please refer to Section (6.2.) and (6.3.)] 13. The owner stated in the new Car Fund Application Form (ZM-55) must be the original Car Fund recipient. 14. Any Car Fund recipient who wishes to upgrade his car but have been found to have violated clause (10), or sold the car without complying to clause (9) but continued to receive the Car Fund, or failed to produce the relevant evidence as requested by the Company under clause (7), the Company reserves the right to withdraw his qualification for receiving Car Fund entitlement, recover the sum paid to the recipient within the period or take any other actions as deemed appropriate against the offending Car Fund recipient. 20 ZHULIAN G o l d en Business Plan 15. The amount of Car Fund entitled to the recipient for upgrading his car is calculated based on the schedule as specified in Section (6.11.)(i). 16. The Company shall not be bound to any financial losses suffered by any Car Fund recipient due to withholding of Car Fund entitlement or withdrawal of qualification for receiving Car Fund in consequence of not complying with any rules and regulations contained herein. Retail Profit 17. In the event that the Car Fund recipient losses his distributorship due to resignation or termination by the Company in consequence of not complying with any rules and regulations contained in this ZHULIAN GOLDEN BUSINESS GUIDE, his qualification for receiving the Car Fund entitlement will be automatically withdrawn and the amount of Car Fund withheld from him will be forfeited. Performance Bonus 18. In the event that the Car Fund recipient transfers his distributorship, his qualification for receiving the Car Fund entitlement will be automatically withdrawn as the Car Fund entitlement is non-transferable and the amount of Car Fund withheld from him will be forfeited. Personal Group Achievement Bonus 19. In consequence of qualification withdrawal, all the Car Fund withheld shall be forfeited by the Company. The amount of forfeited Car Fund shall be added into the total allocated amount of Car Fund (3% of the monthly Company’s Network BV) in the following sales month for the computation process of Car Fund in order to be shared by all Car Fund qualifiers. Leadership Development Bonus 20. The decisions made by the Company in any matters related to Car Fund will be final and shall not be questioned by any Distributors. 7. DIAMOND EXCLUSIVE BONUS (2%) Diamond Exclusive Bonus (DEB) derives from 2% of the monthly Company’s Network Business Volume (BV) and it is allotted equally based on the "PV system", to deserving Diamond Sales Managers (DSM) or Distributors of higher positions who have successfully fulfilled the required conditions in the sales month. Diamond Exclusive Bonus is disbursed to qualified Distributors at the end of every sales month. 7.1. Qualifying Conditions Diamond Sales Managers (DSM) or Distributors of higher positions are required to meet the following conditions:A) “Collectively-qualified 5400” i.e. having achieved: i) A Personal PV of 300 or above.... ii) A Personal Group PV of 5400 or above (inclusive of the “Push-up PV” i.e. Group PV being transferred from downline Sales Executives who failed to achieve a Personal Group PV of 5400); and… B) Achieves the sales volume of SIX (6) or more Qualified Lines (QL) among which TWO (2) of them having achieved the sales volume of Qualified Sales Manager (QSM) or Distributor of higher position. Diamond Achievement Bonus Car Fund Diamond Exclusive Bonus Diamond International Forum Royal Achievement Bonus OR Diamond Sales Managers (DSM) or Distributors of higher positions who have failed to meet the required Personal Group PV of 5400 but managed to fulfil other conditions as mentioned above are still entitled to this Diamond Exclusive Bonus, provided that the shortfall of the 5400PV required must be deducted from the 1st level Qualified Sales Executives (QSE)' Personal Group PV. 21 RCD Cash Award ZHULIAN Gol d en Business Plan 7.2. Computation Retail Profit The points for calculating Diamond Exclusive Bonus is based on the achievement of sales volume according to the number of Qualified Lines (QL) within each of which has Qualified Sales Executives (QSE) and Qualified Sales Manager (QSM) for the sales month. Please refer to the Diamond Exclusive Bonus Point Schedule as shown below:- DIAMOND EXCLUSIVE BONUS (DEB) POINT SCHEDULE Performance Bonus Number of Qualified Lines Required / Percentage (%) Minimum Requirement 6 8 10 Personal Group Achievement Bonus 4 4 4 No. of Qualified Lines within each of which has QSE 2 4 6 No. of Qualified Lines within each of which has QSM Leadership Development Bonus 2.00% 2.50% 3.00% Personal Group PV of the 1st level QSE 1.75% 2.00% 2.50% Personal Group PV of the 2nd level QSE 1.50% 1.75% 2.00% Personal Group PV of the 3rd level QSE 1.25% 1.50% 1.75% Personal Group PV of the 4th level QSE 1.00% 1.25% 1.50% Personal Group PV of the 5th level QSE 0.50% 1.00% 1.25% Personal Group PV of the 6th level QSE 0.50% 1.00% 1.25% Personal Group PV of the 7th level QSE Diamond Achievement Bonus Car Fund Diamond Exclusive Bonus Diamond International Forum Royal Achievement Bonus Total No. of Qualified Lines After the Diamond Exclusive Bonus Points of each qualifier has been determined, 2% of the monthly Company’s Network Business Volume (BV) is divided by the total Diamond Exclusive Bonus Points of all qualifiers to determine the value per point. Value per Point of Diamond Exclusive Bonus = 2% X Company’s Network BV of the sales month Total DEB Points of all qualifiers The value per point of the Diamond Exclusive Bonus differs from month to month, depending on the number of qualifiers and the Company’s Network Business Volume (BV) of that particular sales month. The individual Diamond Exclusive Bonus is determined by the multiplication of the value per point and the individual Diamond Exclusive Bonus Points. RCD Cash Award Your Diamond Exclusive Bonus of the sales month = Your DEB Points X Value per point 22 ZHULIAN G o l d en Business Plan 8. DIAMOND INTERNATIONAL FORUM The Diamond International Forum (DIF) is organised annually at a selected overseas venue as determined by the Company exclusively for the best among the best in ZHULIAN. In conjunction with the forum, an event-filled tour programme itinerary will be prepared and provided for all participants. The Diamond Sales Managers (DSM) or Distributor of higher positions who have successfully met the relevant conditions will be eligible to include their spouse for participation in the Diamond International Forum. Retail Profit Performance Bonus 8.1. Qualifying Conditions The eligibility of Diamond Sales Managers (DSM) or Distributors of higher positions to participate in the Diamond International Forum is subject to the following conditions: A) 1st to 3rd time Qualifiers are required to meet the following conditions in any SIX (6) sales months within a calendar year: i) Maintained a Personal PV of 300 or above; and… ii) Achieves the sales volume of SIX (6) or more Qualified Lines (QL), B) 4th time Qualifiers and above are required to either; meet the following conditions in any NINE (9) sales months within a calendar year: i) Maintained a Personal PV of 300 or above; and… ii) Achieves the sales volume of SIX (6) or more Qualified Lines (QL), OR meet the following conditions in any SIX (6) sales months within a calendar year: i) Maintained a Personal PV of 300 or above; and… ii) Achieves the sales volume of SIX (6) or more Qualified Lines (QL) among which TWO (2) of them having achieved the sales volume of Qualified Sales Manager (QSM) or Distributor of higher position. Personal Group Achievement Bonus Leadership Development Bonus Diamond Achievement Bonus Car Fund 8.2. Rules and Regulations All qualifiers of Diamond International Forum must comply with the following rules and regulations: 1. The Company reserves the sole right to determine the venue of the Diamond International Forum. Once the departure date of the forum is confirmed, invitation letters will be sent out to all the qualifiers and the qualifiers must duly respond within the specified deadline, failing which, the eligibility to take part in the forum will be considered null and void. 2. The eligibility to participate in the Diamond International Forum is not redeemable for cash or any other forms of payment. If the qualifier is unable to participate in the forum under any circumstances, his eligibility for this incentive will be considered null and void. 3. The eligibility to participate in the Diamond International Forum is not transferable. Diamond Exclusive Bonus Diamond International Forum Royal Achievement Bonus RCD Cash Award 23 ZHULIAN Gol d en Business Plan 9. Retail Profit Performance Bonus Personal Group Achievement Bonus Leadership Development Bonus Diamond Achievement Bonus Car Fund ROYAL ACHIEVEMENT BONUS (2%) As special appreciation for the Royal leaders' ranking Royal Crown Manager (RCM) and Royal Crown Director (RCD) who are committed in their quest for excellence as well as in recognition of their long-standing loyalty and unwavering contribution towards the Company’s growth throughout the year, 2% of the Company's Network BV is set aside for this prestigious Royal Achievement Bonus. This special bonus shall be disbursed to the deserving achievers FOUR (4) times in a year based on their quarterly performance.This is a very significant incentive that will inspire the top leaders to keep pushing ahead in order to ensure consistency in their performance. 9.1. Qualifying Conditions Royal Crown Managers (RCM) or Royal Crown Directors (RCD) who have successfully met the following conditions in any TWO (2) sales months within any quarter of a calendar year shall be eligible to enjoy this privileged bonus: A) “Collectively-qualified 5400” i.e. having achieved: i) A Personal PV of 300 or above... ii) A Personal Group PV of 5400 or above (inclusive of the “Push-up PV” i.e. Group PV being transferred from downline Sales Executives who failed to achieve a Personal Group PV of 5400); and… B) Achieves the sales volume of TEN (10) or more Qualified Lines (QL) among which FOUR (4) of them having achieved the sales volume of Qualified Sales Manager (QSM) or Distributor of higher position. OR Royal Crown Managers (RCM) or Royal Crown Directors (RCD) who have failed to meet the required Personal Group PV of 5400 but managed to fulfil other conditions as mentioned above are still entitled to this Royal Achievement Bonus, provided that the shortfall of the 5400PV required must be deducted from the 1st level Qualified Sales Executives (QSE)' Personal Group PV. 9.2. Monthly Entitlement Diamond Exclusive Bonus The eligibility for Royal Achievement Bonus entitlement is on a monthly basis and the bonus is paid only for the months where the Royal Crown Managers (RCM) or Royal Crown Directors (RCD) have fully qualified and successfully met the stipulated qualifying conditions as stated in Section (9.1.). 9.3. Computation Diamond International Forum Royal Achievement Bonus RCD Cash Award The Leadership Development Bonus (LDB) Points will be used for calculating Royal Achievement Bonus. 2% of the monthly Company's Network Business Volume (BV) shall be divided by the total Leadership Development Bonus Points of all qualifiers to determine the value per point. Value per Point of Royal Achievement Bonus = 2% X Company's Network BV of the sales month Total LDB Points of all qualifiers The value per point of the Royal Achievement Bonus may differ from month to month, depending on the number of qualifiers and the Company's Network Business Volume (BV) of the sales month. The individual Royal Achievement Bonus is determined by the multiplication of the value per point and the individual Total Leadership Development Bonus Points of the sales month. 24 ZHULIAN G ol d en Business Plan Your Royal Achievement Bonus of the sales month = Your Total LDB points of the sales month X Value per point Retail Profit 9.4. Disbursement of Bonus Achievers who meet the qualifying conditions as mentioned in Section (9.1.) shall be determined upon closing of the final sales month of each quarter. The Royal Achievement Bonus amount entitled by an achiever in each quarter shall be the summation of the monthly amount calculated based on the achiever’s total Leadership Development Bonus (LDB) Points of the sales month of which the conditions are fulfilled. The Royal Achievement Bonus shall be disbursed to the deserving achievers according to the following disbursement schedule: Performance Bonus ROYAL ACHIEVEMENT BONUS (RAB) DISBURSEMENT SCHEDULE Personal Group Achievement Bonus Qualifying Q1 Q2 Q3 Q4 Period (sales month) (Jan to Mar) (Apr to June) (July to Sept) (Oct to Dec) Disbursement Month May August November February (following year) Leadership Development Bonus 9.5. Recognition The Company is giving special recognition to Royal Crown Managers (RCM) and Royal Crown Directors (RCD) who have successfully fulfilled the qualifying conditions as mentioned in Section (9.1.) for at least SIX (6) sales months within a calendar year by honouring them with an exclusive plaque during the national convention. 10. RCD CASH AWARD Diamond Achievement Bonus Car Fund All newly promoted Royal Crown Directors will be rewarded with a one-time RCD Cash Award (RCA) of RM50,000 as due recognition for their utmost devotion and perseverance in order to go so far until reaching the highest echelon of the highest ranking in ZHULIAN. The RCD Cash Award is presented to the new RCD leaders in a lump-sum during the national convention held annually by the Company. Diamond Exclusive Bonus 10.1. Qualifying Conditions A distributor who achieves the following conditions for SIX (6) sales months consecutively and gets promoted as a Royal Crown Director (RCD) during the calendar year:A) “Self-qualified 5400” i.e. having achieved:i) A Personal PV of 300 or above... ii) Personal Group PV of 5400 or above (non-inclusive of the “Push-up PV” i.e. Group PV being transferred from downline Sales Executives who failed to achieve a Personal Group PV of 5400); and… B) Achieves the sales volume of TEN (10) or more Qualified Lines (QL) among which: i) SIX (6) of them having achieved the sales volume of Qualified Sales Manager (QSM) or distributor of higher position; and... ii) FOUR (4) of them having achieved the sales volume of Qualified Diamond Sales Manager (QDSM) or distributor of higher position. 25 Diamond International Forum Royal Achievement Bonus RCD Cash Award ZHULIAN Recognition And Awards ZHULIAN RECOGNITION AND AWARDS The ZHULIAN GOLDEN BUSINESS OPPORTUNITY is indeed a robust, practical, rewarding and enriching experience for those who seek to succeed and excel. Under the ZHULIAN GOLDEN BUSINESS PLAN, the Company places great importance on the outstanding contributions and achievements of newly promoted Distributors and outstanding leaders who have shown extraordinary traits and qualities. With the objective of spurring other Distributors to follow in the footsteps of these proud achievers and to present them as role models and beacons of inspiration for others to emulate, the Company confers proud recognition for their successes which include the presentation of a series of Certificates of Achievement, plaques, trophies, specially designed collar pins and other awards in the grand award presentation ceremonies held during events such as the Company’s Regional and National Conventions. The Company will include the announcement of such Distributor promotion name lists or motivational messages from newly promoted leaders as due recognition for their proud achievements in the Company’s official website, www.zhulian.com.my or any other media as the Company sees fit. Only valid Distributors who comply fully to all the provisions as stipulated in the procedures, rules and regulations of the ZHULIAN GOLDEN BUSINESS PLAN shall have access and be able to download internet publications from the Company’s official website. RANK PROMOTION STANDARDS Your business performance will determine your position in the ZHULIAN GOLDEN BUSINESS PLAN. There are different standards set for different positions / ranks. Some are based on your accumulated Personal Group PV, the other may have to take the sales strength of your downline network into consideration. Nevertheless, your leadership capability and your ability to develop your downline network are the most important criteria for you to take the big step forward. You will be given the title once you have achieved the promotion standards of the respective position. The higher your position is, the more incentives you will be entitled. Once you have been promoted, the position will remain until you move up to a higher position. Under the ZHULIAN GOLDEN BUSINESS PLAN, there are seven different positions, the following are their respective promotion standards:- RANK PROMOTION STANDARDS FOR EACH POSITION RANK PROMOTION STANDARDS SE SM SSM DSM CDM *RCM **RCD 1 1 1 1 1 3 6 No. of qualifying sales months (consecutive) • • Personal PV 300 only Personal Group PV 3000 in or any sales month after Accumulated Personal Group PV 18000PV# “Self-qualified 5400” (Personal PV 300, Personal 5400 non-inclusive of Push-Up PV) • • • • • • 2 3 6 8 10 10 2 3 6 6 6 - 2 4 6 No. of Qualified Lines within each of which has QSM 4 No. of Qualified Lines within each of which has QDSM Group PV Achievement of sales volume according to No. of Qualified Lines No. of Qualified Lines within each of which has QSE 26 ZHULIAN Recognition And Awards * Distributors who want to achieve the Royal Crown Manager (RCM) position must meet the relevant conditions for THREE (3) sales months consecutively. ** Distributors who want to achieve the Royal Crown Director (RCD) position must meet the relevant conditions for SIX (6) sales months consecutively. # You are required to attain a Personal Group PV of 3000 in or after the sales month which your Accumulated Personal Group PV reaches 18000 or more to enable you to enjoy the 22% Performance Bonus. Promotion to the Sales Executive (SE) level will only take effect from the following month after you have achieved the 22% Performance Bonus. Distributor (DS) refers to any person who meets the required qualifying criteria, who has submitted his / her Distributorship Application Form (ZM-48) and has gained official approval in writing from ZHULIAN and has since been granted the right to distribute ZHULIAN products. Each ZHULIAN Distributor must always strive ahead to achieve a higher level within the ZHULIAN promotion ranking in order to be able to enjoy more ZHULIAN golden incentives including bonuses, etc. Please refer to the following qualifying conditions for each of the promotion rankings: 1. Sales Executive (SE) A Distributor who achieves the following conditions will be promoted to Sales Executive (SE) with effect from the following month:a) Personal PV of 300 and above… b) Accumulated Personal Group PV of 18000 or above… c) Minimum Personal Group PV of 3000 in the qualifying sales month [can be included in (b)]. You are required to attain a Personal Group PV of 3000 in the same sales month or any sales month after which your Accumulated Personal Group PV reaches 18000 or more to enable you to enjoy the 22% Performance Bonus. Promotion to the Sales Executive (SE) level will only take effect from the following month after you have achieved the 22% Performance Bonus. 2. Sales Manager (SM) A Distributor who achieves the following conditions will be promoted to Sales Manager (SM) with effect from the following month:a) “Self-qualified 5400”; and… b) Achieves the sales volume of TWO (2) Qualified Lines (QL). 3. Senior Sales Manager (SSM) A Distributor who achieves the following conditions will be promoted to Senior Sales Manager (SSM) with effect from the following month:a) “Self-qualified 5400”; and… b) Achieves the sales volume of THREE (3) Qualified Lines (QL). 27 ZHULIAN Recognition And Awards 4. Diamond Sales Manager (DSM) A Distributor who achieves the following conditions will be promoted to Diamond Sales Manager (DSM) with effect from the following month:a) “Self-qualified 5400”; and… b) Achieves the sales volume of SIX (6) Qualified Lines (QL). 5. Crown Diamond Manager (CDM) A Distributor who achieves the following conditions will be promoted to Crown Diamond Manager (CDM) with effect from the following month:a) “Self-qualified 5400”; and… b) Achieves the sales volume of EIGHT (8) Qualified Lines (QL) among which TWO (2) of them having achieved the sales volume of Qualified Sales Manager (QSM) or Distributor of higher position. 6. Royal Crown Manager (RCM) A Distributor who achieves the following conditions for THREE (3) sales months consecutively will be promoted to Royal Crown Manager (RCM) with effect from the following month:a) “Self-qualified 5400”; and… b) Achieves the sales volume of TEN (10) Qualified Lines (QL) among which FOUR (4) of them having achieved the sales volume of Qualified Sales Manager (QSM) or Distributor of higher position. 7. Royal Crown Director (RCD) A Distributor who achieves the following conditions for SIX (6) sales months consecutively will be promoted to Royal Crown Director (RCD) with effect from the following month:a) “Self-qualified 5400”; and… b) Achieves the sales volume of TEN (10) Qualified Lines (QL) among which: i) SIX (6) of them having achieved the sales volume of Qualified Sales Manager (QSM) or Distributor of higher position; and… ii) FOUR (4) of them having achieved the sales volume of Qualified Diamond Sales Manager (QDSM) or Distributor of higher position. 28