Authorized Distributor Qualification Activation and Management Terms

Article 1 — Legal Compliance and System Positioning

This system is established by the Company for the purposes of product sales, product promotion, authorized distributor management, distributor service support, team sales incentives, and member rights management.

The application of this system shall not exclude or restrict any statutory rights enjoyed by members, authorized distributors, or consumers under the mandatory laws of the place of sale, including but not limited to consumer protection, cooling-off periods, returns, refunds, product defects, personal data protection, or other statutory rights.

If any provision of this system is inconsistent with the mandatory laws of the place of sale, such mandatory laws shall prevail. Subject to compliance with mandatory laws, relevant transactions, settlements, and management matters may be handled in accordance with this system, the market-specific implementation rules, the return and refund policy, the points redemption rules, and other announced rules.

Article 2 — System Positioning

This system is a product distribution and authorized distributor management system designed around product sales, product promotion, consumer repurchases, valid team sales results, and actual supervisory services.

This system does not charge any membership fee, franchise fee, qualification fee, deposit, royalty, or any other fee for the purpose of obtaining distributor status. Members or authorized distributors are not required to make regular payments, place regular orders, maintain fixed inventory, purchase products beyond actual needs, or maintain distributor qualification through inventory loading.

Any profit-sharing, bonuses, points, allowances, incentives, or other benefits under this system shall be based on valid orders, actual product sales results, valid team sales results, repurchase activities, event participation, or actual supervisory services. No profit-sharing, bonus, commission, allowance, or other remuneration shall be paid solely for introducing others to join, inviting others to register, increasing the number of team members, forming an upline or downline relationship, or obtaining an organizational position.

Article 3 — Prior Disclosure and Electronic Consent

Before activating authorized distributor qualification, purchasing designated product packages, participating in the distribution system, accumulating profit-sharing, or obtaining points, members shall carefully read and agree to this system, the distributor rules, product prices and package contents, the return and refund policy, bonus and points rules, personal data usage rules, prohibited conduct rules, and other relevant documents announced by the Company.

Where a member checks an agreement box, completes a purchase, activates distributor functions, uses a referral link, accumulates performance, or applies for withdrawal through the Company’s website, system, platform, or other electronic means, the member shall be deemed to have read, understood, and agreed to comply with this system and the relevant announced rules.

If the laws of the place of sale require a written contract, electronic contract, prior disclosure items, original contract, specific format, cooling-off period notice, return and refund policy, or other documents, such matters shall be handled in accordance with the laws of the place of sale.

Article 4 — Role Definitions

The roles under this system are as follows:

1. General Member: A consumer who has completed member registration in the Company’s system and may purchase products in accordance with the system rules. A general member is primarily a personal consumer and, before activating authorized distributor qualification, shall not enjoy sales profit-sharing, team sales target achievement rewards, supervisory allowances, distributor-level benefits, or other exclusive benefits available to authorized distributors.

2. Authorized Distributor: A member whose product promotion and sales functions are automatically activated by the system after completing the purchase of designated products or completing designated procedures. An authorized distributor may promote and sell designated products within the authorized scope and participate in the corresponding profit-sharing, points, or incentive mechanisms based on valid sales results.

3. Distributor Team:

   (1) A distributor team is a collaborative calculation unit established for product promotion, collaborative sales, event statistics, accumulation of valid sales results, and incentive calculation needs. It is not a permanent organizational relationship.

   (2) Team members form a collaborative group based on actual product promotion, sales collaboration, and system attribution rules. The purpose is to promote product promotion collaboration, experience sharing, and sales support.

   (3) A distributor team refers to the team formed by members who are introduced through the exclusive purchase link of the same authorized distributor or through an attribution method recognized by the system, and who activate authorized distributor qualification in accordance with this system. Team attribution, team performance, team sales target achievement rewards, and distribution qualifications shall be determined in accordance with the system rules.

4. Distributor Supervisor: An intermediate-level or higher authorized distributor who leads or supports a distributor team and actually provides system explanations, product knowledge, sales assistance, team operation support, after-sales support, business tracking, or other supervisory services.

5. Valid Order: An order that has been established, fully paid, has passed the cooling-off period or return period, and has not been cancelled, returned, refunded, charged back, disputed, involved in non-compliant transactions, abnormal transactions, or other circumstances determined to be non-countable, and which has been confirmed as eligible to be counted toward performance, profit-sharing, points, or incentives.

6. Valid Performance: Performance calculated based on the amount of valid orders and eligible under this system to be counted toward personal performance, team performance, team sales target achievement rewards, points, or other incentive calculations.

Article 5 — Activation of Authorized Distributor Qualification

After a member completes the purchase of designated products, product packages, or plans through the exclusive purchase link of an authorized distributor designated by the system, the system will automatically activate the member’s authorized distributor qualification and product promotion and sales functions.

The activation of the above qualification does not require the member to submit a separate written application, nor is manual review a general activation procedure. However, for account security, transaction authenticity, legal compliance, risk control, prevention of nominee accounts, prevention of fake orders, prevention of abnormal transactions, prevention of improper operations, or other necessary reasons, the Company may review the accounts, orders, information, and transaction activities of members or authorized distributors.

Amounts paid by members are product payments for purchasing products, product packages, or plans, and are not membership fees, qualification fees, franchise fees, royalties, deposits, or fees for obtaining income rights. The activation of authorized distributor qualification is a product promotion and sales function provided based on the system design and does not represent any guarantee of income, profit-sharing, bonuses, points, upgrades, team collaboration rewards, coaching allowances, or payback results.

Article 6 — Distributor Product Starter Packages and Price-Value Consistency

The distributor product starter packages, activity packages, or other product packages referred to under this system are composed of existing sales products, member-exclusive products, distributor-exclusive products, samples, promotional tools, designated service contents, or other announced items.

The products included in a package shall have a calculable pricing basis, including but not limited to public retail prices, member-exclusive prices, distributor single-product purchase prices, or announced product price lists. Some products may be member-exclusive, distributor-exclusive, activity-limited, or package-limited products and may not be publicly sold to general consumers, provided that such products still have real product contents and a reasonable pricing basis.

Payments for product packages are product payments. They are not membership fees, qualification fees, franchise fees, royalties, deposits, nor consideration for obtaining profit-sharing, bonuses, points, team collaboration rewards, coaching allowances, or other income rights.

After a member or authorized distributor completes the purchase of a product package, the system may, in accordance with this system, activate or adjust the corresponding authorized distributor qualification, distributor level, or business support benefits. However, the activation of such qualification, level, or benefits does not constitute any guarantee of income, payback, profit-sharing, bonuses, team collaboration rewards, or coaching allowances.

No person shall represent or promote the purchase of a product package as a method of guaranteeing profit, guaranteeing payback, guaranteeing income, or obtaining passive income.

Article 7 — No Mandatory Purchase and No Inventory Loading Requirement

The Company does not require members or authorized distributors to make regular product purchases, maintain fixed inventory, reach a minimum inventory quantity, or purchase products beyond actual needs in order to obtain, maintain, or continue distributor qualification.

Authorized distributors may, according to their own sales capability, business planning, and actual needs, independently decide whether to sell, promote, repurchase, or participate in announced activity plans. Any product purchase, product package purchase, or activity participation shall be based on real consumption, actual sales, or reasonable business needs, and shall not be used to obtain qualification, performance, profit-sharing, points, team collaboration rewards, or coaching allowances through nominee accounts, fake transactions, fake orders, induced inventory loading, or other improper means.

Article 8 — One Person, One Account and Multiple Position Restrictions

Each natural person may, in principle, hold only one member account and one authorized distributor qualification. No person may obtain, control, or operate multiple member accounts, distributor positions, promotion rights, or team attributions through themselves, relatives, related parties, nominee arrangements, trustees, actual controllers, or any other means.

Authorized distributors shall not use multiple accounts, multiple positions, related-party accounts, nominee accounts, borrowed-name accounts, or other methods to repeatedly accumulate performance, profit-sharing, points, team collaboration rewards, or coaching allowances.

If a member or authorized distributor is found to have violated this Article, the relevant orders, performance, profit-sharing, points, and incentives may be excluded from recognition. If they have already been recognized or paid, they may be reversed, deducted, recalculated, or subject to necessary measures such as account restriction, suspension of qualification, downgrade, or termination of qualification.

Article 9 — Distributor Levels

Authorized distributors are classified under this system as junior distributors, intermediate distributors, and senior distributors, or such other levels as may be announced in the future. After a member or authorized distributor completes the purchase of a distributor package, the system may automatically activate or adjust the corresponding distributor level based on the applicable product package purchased.

The personal sales profit-sharing, repurchase points, team sales target achievement reward distribution qualification, activity qualification, training resources, marketing support, or other benefits applicable to different distributor levels shall be handled in accordance with the system announced for the relevant period.

The acquisition or adjustment of a distributor level does not constitute any guarantee of income, profit, payback, team collaboration rewards, or any other result. The actual profit-sharing, incentives, points, or other benefits that an authorized distributor may obtain shall still be subject to valid orders, valid performance, team target achievement, return and refund status, and the settlement rules announced for the relevant period.

Article 10 — Cancellation of Qualification, Returns, and Level Restoration

If a member or authorized distributor activates authorized distributor qualification or adjusts distributor level due to the purchase of designated products, product packages, or plans, and the relevant order is subsequently cancelled, returned, refunded, charged back, disputed, involved in non-compliant transactions, abnormal transactions, or otherwise determined to be non-countable, the corresponding distributor qualification and level may be cancelled, suspended, downgraded, or restored to the previous status.

If the above order has generated personal performance, personal sales profit-sharing, repurchase points, activity points, team performance, team sales target achievement rewards, supervisory allowances, or other incentives, such items may be deducted, recalculated, suspended, or cancelled in accordance with the return, refund, or reversal rules.

This Article shall not exclude any statutory right of members, authorized distributors, or consumers to rescind, terminate, return, refund, or exercise any other statutory right.

Article 11 — Referral Links and Team Attribution

Authorized distributors may obtain exclusive purchase links or promotional identifiers in accordance with the system rules. If a member completes a designated purchase through the exclusive purchase link of an authorized distributor and activates authorized distributor qualification, the system may, according to the attribution rules of such purchase link, include such member in the corresponding distributor team for collaborative management, performance statistics, and incentive calculation purposes.

Team attribution shall be based on system records. Members and authorized distributors shall be responsible for verifying the accuracy of purchase links, account information, order information, and referral sources. If disputes arise regarding team attribution, performance recognition, profit-sharing calculation, or incentive distribution due to use of an incorrect link, duplicate registration, incorrect information, third-party operation, failure to follow designated purchase procedures, or other causes not attributable to the Company, the Company may determine the matter based on system records, payment records, order records, and actual circumstances.

The same authorized distributor may simultaneously belong to another distributor’s team and may establish a distributor team under this system. However, whether such distributor qualifies as a distributor supervisor, whether they may receive supervisory allowances, or whether they may enjoy team management benefits shall still be determined based on distributor level, team target achievement, actual supervisory services, and review results.

Article 12 — Adjustment of Team Relationships

Team relationships are established based on market operation, educational support, and operational needs, and are not permanent organizational relationships.

Authorized distributors or team members may, where there is a reasonable cause, apply to the Company for adjustment of team relationships. Such adjustment shall be determined based on actual operational needs, team interaction status, and other reasonable factors.

No person shall claim permanent organizational rights, fixed income, permanent management authority, or any similar rights merely due to the establishment of a team relationship.

Article 13 — Self-Purchases, Related-Party Purchases, and Abnormal Transaction Control

Authorized distributors themselves, their relatives, related parties, or consumers introduced by them may purchase products, product packages, or activity plans through the normal sales process. If such transactions are for real consumption, actual use, or a reasonable sales purpose, and meet the valid order and valid performance conditions under this system, the relevant performance, profit-sharing, points, or team sales target achievement rewards may be recognized in accordance with system rules and the system announced for the relevant period.

This system does not directly exclude performance recognition merely because the purchaser is a relative, friend, business partner, or otherwise related to the authorized distributor. However, if the transaction purpose is not real consumption or normal sales, but rather an abnormal transaction conducted to obtain distributor qualification, raise distributor level, accumulate team performance, trigger team sales target achievement rewards, obtain profit-sharing, obtain points, or obtain other incentives, such transaction may be excluded from recognition. If it has already been recognized, it may be reversed, deducted, or recalculated.

The abnormal transactions referred to above include but are not limited to nominee accounts, borrowed-name accounts, duplicate accounts, fake transactions, fake orders, circular purchases, short-term large purchases followed by returns, multiple accounts operated by the same actual controller, abnormal sources of funds or payment flows, inconsistency between the order and the actual recipient, purchase behavior clearly inconsistent with normal consumption or sales needs, or other conduct determined to involve abnormality or arbitrage concerns based on transaction records, payment records, logistics records, account information, and actual circumstances.

Article 14 — Personal Sales Profit-Sharing

Where an authorized distributor sells designated products, product packages, or plans, the authorized distributor may receive personal sales profit-sharing in accordance with the system rules announced for the relevant period after the order becomes a valid order.

Personal sales profit-sharing for distributor product starter packages shall, in principle, be calculated at 30% of the valid order amount. Personal sales profit-sharing for quarterly activity packages shall, in principle, be calculated at 20% of the valid order amount. The relevant allocation ratio for the source of team sales target achievement rewards shall be handled in accordance with the announcement for the relevant period.

Regardless of whether the seller is a junior, intermediate, or senior distributor, if the seller successfully sells designated products, product packages, or plans as announced, and the order meets the valid order conditions, personal sales profit-sharing may be calculated in accordance with the system rules for the relevant period.

The above personal sales profit-sharing arises from valid product sales results and is not remuneration obtained for recommending others to join, introducing others to register, forming an upline or downline relationship, or increasing the number of team members.

Personal sales profit-sharing shall only be paid after the order has passed the cooling-off period, return period, dispute period, and other settlement conditions, and shall be handled in accordance with the settlement and withdrawal rules. If any return, refund, order cancellation, chargeback, transaction dispute, non-compliant transaction, abnormal transaction, or other risk control circumstance occurs, the relevant profit-sharing may be suspended, deducted, recalculated, adjusted, or cancelled.

Article 15 — Personal Product Repurchases and Repurchase Points

When an authorized distributor makes a personal product repurchase, corresponding repurchase points may be granted according to the distributor level. Junior distributors may receive repurchase points equal to 5% of the valid product repurchase amount; intermediate distributors may receive 12%; senior distributors may receive 15%.

Repurchase points are not cash commissions and shall not be directly regarded as cash income, nor may they be requested to be redeemed for cash. The method of use, offset method, redemption items, validity period, settlement rules, and other restrictions regarding repurchase points shall be handled in accordance with the announced points system.

For the same valid personal product repurchase order, 15% of the valid repurchase order amount shall additionally be allocated to the corresponding source of team sales target achievement rewards. Repurchase performance may be counted toward the team performance and relevant target calculations of the distributor’s team in accordance with this system. However, if a member or distributor is not attributed to any distributor team, such repurchase order shall not be counted toward any team performance.

If a repurchase order is returned, refunded, cancelled, charged back, disputed, or otherwise subject to adjustment, the personal repurchase points, team performance, team sales target achievement rewards, and related benefits corresponding to such repurchase shall be reversed, deducted, or recalculated in accordance with the rules.

Article 16 — Recognition of Quarterly Activity Packages

When an authorized distributor sells a quarterly activity package, the authorized distributor may receive the corresponding personal sales profit-sharing under this system, and the valid order amount shall be allocated in the applicable proportion to the source of team sales target achievement rewards.

If a member or authorized distributor purchases a quarterly activity package personally, the attribution of performance, profit-sharing, activity points, and source of team sales target achievement rewards for that order shall be handled according to the referring distributor, order source, and attribution rules recognized by the system, and shall not be directly attributed to the purchaser.

The activity period, product contents, profit-sharing ratio, points rules, valid order recognition, return handling, and other restrictions for quarterly activity packages shall be subject to the announcement for the relevant period.

Article 17 — Nature of Team Sales Target Achievement Rewards

Team sales target achievement rewards are supplementary sales incentive mechanisms established to encourage authorized distributors to jointly promote products, enhance market operating activity, promote consumer repurchases, and strengthen sales service quality.

The calculation and payment of such rewards shall be based on valid product sales results within the designated period and shall comply with the target achievement conditions, valid performance recognition, return and refund status, and settlement rules announced for the relevant period.

The distribution of team collaboration rewards shall be determined based on the actual market participation, product promotion, business collaboration, and other actual contributions of team members during the designated period.

The above rewards shall not be treated as fixed income, guaranteed income, passive income, or a main source of income, nor shall they be based on recruitment numbers, number of participants, account numbers, organizational levels, or mere referral relationships, nor used as the main appeal for soliciting others to join this system.

No authorized distributor shall automatically obtain continuing profit-sharing, multi-level benefits, or other similar income due to subsequent sales, promotion, transactions, recruitment, or other organizational extension activities of other distributors.

Distributor supervisors are not fixed recipients of team collaboration rewards. The receipt of supervisory allowances shall still require actual collaborative services such as product education, sales support, customer service, activity support, or business coaching as necessary conditions, and shall only be paid after review and approval.

Article 18 — Sources of Team Sales Target Achievement Rewards

Based on valid product sales results within the designated period and the system rules, the distributor team may allocate corresponding team sales target achievement rewards as supplementary sales incentives to encourage team collaboration, market promotion, product sales, and business activity. The calculation basis is as follows:

1. Distributor product package sales: 5% of the valid order amount.

2. Quarterly activity package sales: 10% of the valid order amount.

3. Personal product repurchases: 15% of the valid repurchase order amount.

Although distributor product starter packages may be counted as valid performance under the system and may partially contribute to the source of team sales target achievement rewards, the allocation ratio is lower than that of quarterly activity packages and personal product repurchases. The purpose is to avoid overreliance of team collaboration rewards on the first purchase of product packages by new distributors and to encourage teams to focus on continuous product sales, consumer repurchases, and real business results as the main development foundation.

The amount allocated from each order as a source of team sales target achievement rewards shall be recorded by the system based on order source, date, order number, team attribution, quarterly period, allocation ratio, and allocation amount. The source of team sales target achievement rewards shall not be distributed immediately upon the establishment of each order, but shall be settled according to the triggering mechanism and distribution ratio when the team’s valid performance reaches the designated threshold under this system.

Article 19 — Triggering Thresholds for Team Sales Target Achievement Rewards

Team sales target achievement rewards are subject to quarterly accumulation and target-triggering mechanisms. During each quarter, when the cumulative valid performance of a distributor team reaches the designated stage threshold announced for the relevant place of sale, currency, or market, the corresponding stage of team sales target achievement reward distribution may be triggered in accordance with this system and the relevant implementation rules.

The team sales target thresholds, applicable currency, calculation basis, applicable period, conversion method, core contributor qualification, and other implementation details for each place of sale may be separately determined based on market conditions, product prices, exchange rates, operating costs, tax costs, logistics costs, legal requirements, and system management needs, and announced through market-specific implementation rules, team sales target achievement reward rules, current-period reward announcements, or other written or electronic announcements.

Whether a team’s valid performance has reached the target shall be based on valid orders, valid performance, return and refund status, cooling-off period completion, and settlement data recorded in the system. If returns, refunds, order cancellations, chargebacks, transaction disputes, non-compliant transactions, abnormal transactions, or other adjustment matters cause the team’s valid performance to fall short of the original triggering threshold, the team sales target achievement rewards and distribution results may be reversed, deducted, recalculated, or adjusted.

Article 20 — Stage-Based Distribution of Team Sales Target Achievement Rewards

To avoid duplicate payments, team sales target achievement rewards adopt a stage-based distribution concept rather than recalculating the entire amount each time a target is reached.

The performance range for each reward stage shall be determined according to the team sales target thresholds announced for each place of sale, currency, or market. Each stage reward refers to the amount of team sales target achievement reward source accumulated from valid orders within the performance range corresponding to that stage.

Each stage reward shall be independently calculated and independently distributed according to its corresponding range, and shall not be repeatedly counted, repeatedly distributed, or repeatedly paid. The specific thresholds, range, calculation method, applicable currency, and applicable period for each stage shall be handled in accordance with the announcement for the relevant period or the market-specific implementation rules.

Article 21 — Quarterly Period and Reset Rules

Team sales target achievement rewards shall be calculated based on calendar-year quarters, namely January to March as the first quarter, April to June as the second quarter, July to September as the third quarter, and October to December as the fourth quarter. Each quarter shall be an independent settlement period. Team valid performance and sources of team sales target achievement rewards shall accumulate within that quarter and trigger distribution based on target achievement status.

After the end of a quarter, team valid performance and corresponding sources of team sales target achievement rewards that have not reached the triggering threshold shall, unless otherwise provided in this system, the market-specific implementation rules, or current-period announcements, in principle, not be carried forward to the next quarter and shall be reset to zero at the beginning of the new quarter.

If a team has reached certain stage thresholds during the quarter but has not reached the next stage threshold, whether the relevant reward sources shall be retained and the applicable conditions shall be handled in accordance with the announcement for the relevant period or the market-specific implementation rules.

If returns, refunds, order cancellations, chargebacks, transaction disputes, non-compliant transactions, abnormal transactions, or other adjustment matters cause changes to quarterly valid performance, stage achievement results, or reward distribution qualifications, the relevant rewards may be reversed, deducted, recalculated, or adjusted according to the actual circumstances.

Article 22 — Distribution Ratios for Team Sales Target Achievement Rewards

When a team reaches the first-stage threshold, the team sales target achievement rewards for that stage shall be distributed as follows: 15% to qualified distributor supervisors as supervisory allowances; 55% to core contributors of that stage, distributed according to their proportion of accumulated sales for the quarter; 20% to qualified intermediate-level or higher distributors within the team as team collaboration participation incentives, in accordance with the distribution rules announced for the relevant period; and 10% retained by the Company for outstanding team or individual rewards, activities, incentives, or other purposes.

When a team reaches the second-stage threshold, the team sales target achievement rewards for that stage shall be distributed as follows: 20% to qualified distributor supervisors as supervisory allowances; 60% to core contributors of that stage, distributed according to their proportion of accumulated sales for the quarter; 10% to qualified intermediate-level or higher distributors within the team as team collaboration participation incentives, in accordance with the distribution rules announced for the relevant period; and 10% retained by the Company for outstanding team or individual rewards, activities, incentives, or other purposes.

When a team reaches the third-stage threshold, the team sales target achievement rewards for that stage shall be distributed as follows: 25% to qualified distributor supervisors as supervisory allowances; 65% to core contributors of that stage, distributed according to their proportion of accumulated sales for the quarter; 5% to qualified intermediate-level or higher distributors within the team as team collaboration participation incentives, in accordance with the distribution rules announced for the relevant period; and 5% retained by the Company for outstanding team or individual rewards, activities, incentives, or other purposes.

The performance thresholds, applicable currency, core contributor sales conditions, applicable period, settlement cycle, and other implementation details for each stage shall be handled in accordance with the announcement for the relevant period or the market-specific implementation rules.

The above-mentioned rewards allocated to all qualified intermediate-level or higher distributors within the team are established to encourage team members to maintain actual market participation, collaborative interaction, and product promotion activity, and are not automatically obtained by introducing others to join, forming an upline or downline relationship, increasing the number of team members, obtaining an organizational position, or merely existing within the team.

The thresholds for each stage and the core contributor qualification conditions may be adjusted based on the market conditions, product prices, exchange rates, operating costs, tax costs, logistics costs, and legal requirements of different places of sale, and shall be disclosed before application through website announcements, system notifications, electronic documents, or other reasonable means.

Article 23 — Market-Specific Implementation Rules

The Company may establish market-specific implementation rules for different countries or regions based on market conditions, currency, product prices, exchange rates, tax costs, logistics costs, legal requirements, and operational strategies.

Market-specific implementation rules may supplement product prices, product package contents, distributor level conditions, team sales target thresholds, core contributor qualifications, points redemption items, withdrawal currency, settlement cycle, return and refund procedures, and other implementation details for the relevant place of sale.

Market-specific implementation rules form part of this system and have the same effect as this system. If there is any inconsistency between market-specific implementation rules and this system, the market-specific implementation rules applicable to the relevant place of sale shall prevail, except where mandatory laws may not be excluded.

Before a member or authorized distributor becomes subject to the system of the relevant place of sale, the relevant implementation rules and applicable contents for the current period shall be disclosed through website announcements, system notifications, electronic documents, or other reasonable means.

Article 24 — Distributor Supervisor Qualification

An authorized distributor must be an intermediate-level or higher distributor in order to qualify as a distributor supervisor. If an authorized distributor is currently only a junior distributor, even if the distributor already has a distributor team, the distributor shall not automatically qualify as a distributor supervisor and shall not claim supervisory allowances.

If a junior distributor wishes to obtain supervisor qualification, the distributor shall complete the purchase of an intermediate-level or higher product starter package and, after the system activates the corresponding level, may become a distributor supervisor in accordance with the system. However, whether supervisory allowances may actually be received shall still depend on team target achievement, actual supervisory services, and review results.

Distributor supervisor qualification shall not be interpreted as employee, agent, management position, regional agent, general agent, or any other status that may represent the Company externally.

Article 25 — Nature and Obligations of Supervisory Allowances

Supervisory allowances are service-based allowances provided by the Company to qualified distributor supervisors for actual coaching services. They are not automatically paid for introducing others to join, increasing team numbers, forming upline or downline relationships, or obtaining organizational positions.

Distributor supervisors shall provide necessary coaching to their distributor teams, including but not limited to company information communication, product knowledge explanation, system explanation, sales script assistance, customer development guidance, team operation suggestions, after-sales service assistance, and other recognized coaching services.

Distributor supervisors shall submit coaching records, meeting records, training records, distributor business tracking records, or other materials proving actual coaching in accordance with the rules. Supervisory allowances for the relevant settlement period may only be received after review and approval.

If actual supervisory services are not provided, records are not submitted, records are incomplete or false, review approval is not obtained, or the services are determined not to meet supervisory service standards, the supervisory allowance for the relevant period may be denied, suspended, reduced, or cancelled.

Article 26 — Nature of Points

This system establishes personal growth points, travel points, and repurchase points. The methods of obtaining, using, validity period, redemption items, redemption restrictions, and expiration rules for each type of points shall be handled in accordance with the announced points system.

Points are incentive, rebate, or operational support tools provided to members or authorized distributors. They are not cash, deposits, advance payments, securities, nor do they constitute a cash claim against the Company by members or authorized distributors. Points may not be transferred, sold, redeemed for cash, or requested to be converted into cash, nor may they be used as a basis for guaranteed income, guaranteed payback, guaranteed profit-sharing, guaranteed upgrade, or bonus qualification.

Points shall not be counted toward personal performance, team performance, or the source of team sales target achievement rewards, nor shall the acquisition, use, or redemption of points generate any profit-sharing, commissions, bonuses, allowances, referral remuneration, or other cash income.

Personal growth points are mainly used for training resources, operational support, content support, filming support, mentor coaching resources, or other announced non-cash benefits. Travel points are mainly used for annual competitions, major events, travel quotas, activity subsidies, annual conference qualifications, or other non-cash incentives. Repurchase points are mainly used to redeem products, samples, gifts, or other designated redemption items.

Article 27 — Acquisition, Use, and Redemption Restrictions of Points

Points may be obtained in accordance with announced rules through valid sales, valid promotion, event participation, task completion, repurchase activities, or other designated methods. Where content posting, task check-ins, event participation, promotion activities, or other non-direct transaction activities are involved, such activities must be reviewed and recognized as valid before points may be counted.

Members or authorized distributors may use corresponding points at the redemption center or designated platform to redeem products, gifts, services, marketing support, training resources, event qualifications, travel activity qualifications, or other designated non-cash benefits in accordance with announced rules.

Once a points redemption is completed, the points used shall be deemed consumed and, in principle, may not be cancelled, returned, converted into cash, converted into other points, or subject to other compensation. Products, gifts, marketing support, training resources, event qualifications, travel activities, or other benefits redeemed with points shall, in principle, not be subject to cooling-off periods, return periods, or cash refund mechanisms applicable to general product sales.

However, where exclusion is not permitted by law, or where the redeemed item is defective, incorrect, insufficient, damaged, expired, unavailable, or otherwise attributable to the Company, the Company may provide replacement, reissuance, point return, rescheduling, or other reasonable handling according to the actual circumstances.

The validity period, settlement rules, use restrictions, redemption items, redemption limits, and expiration rules for each type of points shall be announced by the Company. Points not used by their expiration date shall be deemed expired, and members or authorized distributors may not request cash redemption, compensation, return, or any substitute payment.

Article 28 — Fairness and Risk Control of Points

Points shall be based on valid transactions, valid tasks, valid activities, or valid repurchases. If a transaction is cancelled, returned, refunded, a task fails review, or any other non-countable circumstance occurs, the relevant points shall be reversed, deducted, or recalculated in accordance with the rules.

The same conduct shall not be counted repeatedly. Members or authorized distributors shall not obtain points through fake orders, fake transactions, nominee accounts, duplicate accounts, falsified tasks, inflated content, malicious returns, abnormal repurchases, or other improper means.

The Company reserves the right to review, adjust, suspend crediting, cancel recognition, set limits, reverse points, and take risk control measures. In serious cases, the Company may also suspend or terminate the authorized distributor qualification.

Article 29 — Withdrawal Qualification and Information Provision

If an authorized distributor generates withdrawable personal sales profit-sharing, team sales target achievement rewards, supervisory allowances, or other cash incentives under this system, the authorized distributor shall provide true, accurate, complete, and up-to-date personal information, identity documents, bank account information, tax information, or other information required for settlement, remittance, tax, legal compliance, and accounting operations in accordance with applicable laws and regulations.

If the authorized distributor fails to provide necessary information, provides incomplete or incorrect information, has an unverifiable account, cannot be identified, or raises other risk concerns, withdrawals or settlements may be suspended, or supplementary information may be required.

The Company will collect, process, and use relevant personal data within the necessary scope of distributor qualification management, order processing, bonus settlement, points management, withdrawal operations, tax reporting, legal compliance, and dispute handling in accordance with applicable personal data protection laws and the privacy policy.

Article 30 — Withdrawal Calculation and Fees

Withdrawable amounts shall be calculated based on valid performance and system settlement results. Valid performance must be order amounts that have passed the cooling-off period, return period, or announced dispute handling period, and must not involve cancellation, return, refund, chargeback, transaction dispute, non-compliant transaction, abnormal transaction, or other order amount determined to be non-countable.

Withdrawal operations may be handled in accordance with announced cycles, minimum withdrawal amounts, review procedures, remittance methods, and other rules. Necessary handling fees may be deducted from withdrawals, including but not limited to bank remittance fees, interbank fees, cross-border remittance fees, or other necessary fees not charged by the Company.

If returns, refunds, chargebacks, transaction disputes, performance reversals, or reward recalculations occur after withdrawal, the Company may deduct the relevant amount from subsequent profit-sharing, rewards, allowances, points, or other amounts payable to the authorized distributor, or require the authorized distributor to return any overpaid amount.

Article 31 — Return, Refund, and Order Cancellation Policy

After a member, consumer, or authorized distributor purchases products, product packages, or activity plans, any request for return, refund, exchange, or order cancellation shall be handled in accordance with the announced return and refund policy, sales page descriptions, order terms, and applicable laws of the place of sale.

Return or refund applications shall be submitted in accordance with the Company’s announced procedures and shall meet the requirements that the product is unused, unopened, in complete packaging, does not affect resale, or meets other announced return conditions. However, where the product is defective, incorrectly shipped, insufficient, damaged, expired, or otherwise attributable to the Company, the Company will provide replacement, reissuance, refund, or other reasonable handling according to the actual circumstances.

Except where otherwise required by mandatory laws of the place of sale, the Company may refuse return or refund requests under the following circumstances: the product has been opened, used, damaged, contaminated, has incomplete packaging, the return application period has expired, the product value is reduced due to personal reasons, the product is customized, consumable products have been opened, activity gifts are not returned together, or other circumstances where return is unsuitable due to product nature, transaction conditions, or the Company’s announced policy.

If a return, refund, or order cancellation involves personal performance, personal sales profit-sharing, repurchase points, activity points, team performance, team sales target achievement rewards, supervisory allowances, distributor level, activity qualification, or other benefits that have already been counted, the Company may reverse, deduct, recalculate, suspend, or cancel the relevant performance, profit-sharing, points, rewards, allowances, and qualifications in accordance with this system and the return and refund policy.

The refund amount, refund method, refund timing, shipping cost responsibility, handling fee deduction, gift return, and other return and refund details shall be handled in accordance with the announced return and refund policy, transaction terms, and applicable laws of the place of sale.

This Article shall not exclude any rights to product defect claims, returns, refunds, consumer protection, or other statutory rights enjoyed by members, consumers, or authorized distributors under the mandatory laws of the place of sale.

Article 32 — Returns, Refunds, and Performance Reversal

If an order is returned, refunded, cancelled, charged back, disputed, involved in non-compliant transactions, fake transactions, fake orders, nominee accounts, abnormal transactions, or any other circumstance determined to require adjustment, the personal performance, personal sales profit-sharing, repurchase points, activity points, team performance, team sales target achievement rewards, supervisory allowances, competition qualifications, and other related incentives corresponding to that order shall be reversed, deducted, recalculated, or cancelled in accordance with the rules.

If the relevant profit-sharing, rewards, points, or allowances have not yet been paid, payment may be suspended or cancelled directly. If they have already been paid, the relevant amount may be deducted from subsequent payable amounts, or the authorized distributor may be required to return the amount.

If returns, refunds, or disputed orders affect team target thresholds, core contributor qualifications, supervisory allowance qualifications, or team sales target achievement reward distribution, the team’s valid performance and reward distribution results for that quarter may be recalculated.

Article 33 — Product Package Promotion Restrictions

When promoting distributor product starter packages, quarterly activity packages, or other product packages, authorized distributors shall focus on product contents, product purpose, product value, method of use, sales demonstration, and reasonable business needs. They shall not use the purchase of packages as a promotional method for guaranteed profit, guaranteed payback, guaranteed income, guaranteed upgrade, guaranteed team collaboration rewards, or passive income.

Any profit-sharing, rewards, points, allowances, or income calculations listed in this system are solely for system explanation and calculation illustration. They do not constitute income commitments, profit guarantees, payback guarantees, investment return commitments, or any guaranteed results. The actual profit-sharing, rewards, points, or allowances that an authorized distributor may receive shall be based on valid sales results, team target achievement, actual supervisory services, return and refund status, completion of the cooling-off period, and the Company’s final settlement results.

Authorized distributors shall not independently create, distribute, or use presentations, charts, scripts, social media posts, videos, or other promotional materials that may cause others to mistakenly believe there is guaranteed profit, guaranteed payback, guaranteed upgrade, guaranteed team collaboration rewards, guaranteed coaching allowances, or guaranteed passive income.

If an authorized distributor violates this Article, the Company may, in accordance with the violation handling rules, require correction within a specified period, removal of content, suspension of account functions, cancellation of relevant performance, profit-sharing, points, rewards, or allowances. In serious cases, the Company may terminate the authorized distributor qualification.

Article 34 — Prohibited Conduct

Authorized distributors shall not engage in any of the following conduct:

1. Promote products, the system, profit-sharing, rewards, points, allowances, or income in a false, exaggerated, or misleading manner.

2. Claim that joining this system guarantees profit, payback, upgrade, team collaboration rewards, or any income.

3. Promote products using medical effects, disease treatment, disease improvement, medical alternatives, or other claims that violate cosmetics and advertising laws and regulations.

4. Induce, require, or imply that others should make unnecessary purchases, inventory loading, or repeated purchases in order to obtain qualification, upgrade, profit-sharing, points, team collaboration rewards, or coaching allowances.

5. Obtain performance, profit-sharing, rewards, or points through nominee accounts, borrowed-name accounts, duplicate accounts, fake transactions, fake orders, malicious returns, or other improper means.

6. Change prices, promise discounts, promise gifts, promise refund conditions, or externally offer unauthorized commercial terms without written consent.

7. Claim to be an employee, agent, general agent, regional agent, partner, representative, or any other status that may cause a third party to mistakenly believe the person has authority to represent the Company, without written consent.

8. Modify, alter, reproduce, excerpt, or improperly use brand materials, product literature, system explanations, training contents, or other intellectual property without authorization.

9. Damage the rights, interests, goodwill, or normal business order of the Company, other distributors, consumers, or business partners.

10. Engage in any other conduct that violates this system, the Company’s announced rules, laws and regulations, or public order and good morals.

Article 35 — Use of Brand Materials and Sales Information

Authorized distributors may use brand materials, product information, system explanations, training contents, sales tools, and promotional materials provided or approved by the Company within the authorized scope.

Without prior written consent, authorized distributors shall not independently modify, alter, reproduce, excerpt, exaggerate, quote out of context, or use the above materials in a manner that may easily cause misunderstanding.

When using the Company’s brand, trademarks, product names, images, videos, copywriting, or other intellectual property, authorized distributors shall comply with brand usage rules and relevant laws and regulations. In case of violation, the Company may require immediate cessation of use, removal of content, public correction, cancellation of relevant rewards, or termination of authorized distributor qualification.

Article 36 — No Employment, Agency, or Partnership Relationship

Unless otherwise agreed in writing, the relationship between the authorized distributor and the Company is an independent cooperation relationship. The authorized distributor is not an employee, agent, partner, franchisee, mandatary, legal representative, or regional agent of the Company.

Authorized distributors shall not sign contracts on behalf of the Company, receive non-designated payments, externally promise terms, handle legal disputes, recruit employees, provide guarantees, or engage in any conduct that may cause a third party to mistakenly believe that they have authority to represent the Company.

Authorized distributors shall be responsible for legal liabilities arising from their own sales, promotion, solicitation, publicity, tax reporting, customer service, or other conduct. If an authorized distributor violates laws, this system, or company rules, causing the Company to suffer damage, administrative penalties, third-party claims, or reputational harm, the Company may require the authorized distributor to bear liability for damages.

Article 37 — Suspension, Downgrade, and Termination of Qualification

If an authorized distributor violates this system, announced rules, brand usage rules, sales rules, laws or regulations, or engages in false publicity, non-compliant solicitation, induced inventory loading, fake orders, nominee accounts, unauthorized use of identity, malicious returns, damage to the Company’s goodwill, infringement of consumer rights, infringement of other distributors’ rights, or other circumstances determined to make continued cooperation unsuitable, the Company may take one or more of the following measures depending on the circumstances:

1. Issue a warning or require correction within a specified period.

2. Suspend account functions.

3. Suspend profit-sharing, rewards, points, allowances, or withdrawals.

4. Cancel or reverse relevant performance, profit-sharing, rewards, points, or allowances.

5. Adjust team attribution or reward distribution.

6. Downgrade or cancel specific activity qualifications.

7. Terminate authorized distributor qualification.

8. Claim damages or take other necessary measures in accordance with the law.

After termination of authorized distributor qualification, the authorized distributor shall not continue using the authorized distributor title, brand materials, product literature, sales links, system materials, or any other content that may cause a third party to mistakenly believe that the distributor still has authorized qualification.

Orders, profit-sharing, rewards, points, allowances, or other benefits established before termination but not yet settled shall still be handled in accordance with valid orders, return and refund status, violation review results, and settlement rules.

Article 38 — System Adjustment and Announcements

The system may be revised, adjusted, suspended, or terminated based on market conditions, product strategy, operational needs, cost structure, legal requirements, system adjustments, risk control, or other actual circumstances, including but not limited to products, product packages, distributor levels, profit-sharing ratios, points rules, team sales target achievement rewards, target thresholds, supervisor qualifications, withdrawal rules, return reversal rules, and other related system contents.

The above adjustments may be disclosed through announcements, system notifications, electronic documents, written notices, or other reasonable means, and shall apply from the effective date stated in the announcement or notice.

Authorized distributors shall independently assess market operation and sales risks and shall not, due to system adjustments, product adjustments, activity changes, system termination, or other changes to system contents, claim breach of contract, request refund of product payments, claim damages, or assert other compensation liability. This shall not apply where the matter is caused by intentional misconduct or gross negligence.

If an authorized distributor continues to use the system, promote or sell products, participate in activities, accumulate performance, use points, or apply for withdrawals after the effective date of a system adjustment, the authorized distributor shall be deemed to have agreed to the adjusted system contents.

If the relevant system adjustment is legally required to complete filing, application, licensing, or other statutory procedures, such procedures shall be completed in accordance with the relevant laws of each place of sale before implementation.

Article 39 — Matters Not Covered

Matters not covered by this system shall be handled in accordance with other rules announced by the Company, member terms, privacy policy, return and refund policy, points redemption rules, brand usage rules, sales management rules, and applicable laws of the place of sale.

If any provision of this system is determined by a competent authority, court, or other authorized body to be invalid, illegal, or unenforceable, the validity of the remaining provisions shall not be affected. The Company may amend such provision in accordance with legal requirements and the purpose of this system so as to achieve, within the lawful scope, an effect closest to the original purpose of the system.