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This Business Rules of Conduct is a part of distributor contract. The aim is to regulate the right, obligation, and responsibility between Grand Sun International Pte Ltd. and distributors to promote the harmonious relationship between Grand Sun and all distributors and among distributors; and finally to protect the interests that distributors can obtain under Grand Sun international marketing reward system.
   I、TERMINOLOGY
  1.1.  Distributor
         When you are sponsored by one sponsor and after Grand Sun has approved your distributor application, you will have
         the rights to sell Grand Sun's products and recommend others to become your down-line distributors as stipulated
        in Grand Sun Business Rules of Conduct. You can also be called "Grand Sun Authorized Product Distributor".
  1.2.  Sponsor
         When you are introduced by a certain Grand Sun distributor to entered into a business partnership with Grand
         Sun, then this distributor is your sponsor in the Grand Sun business.
  1.3.  Distributorship
         After you become a distributor of Grand Sun, the rights, interests and obligations stipulated in the Grand Sun
         Business Rules of Conduct are the distributorship you own in Grand Sun business, including purchase, sales,
          sponsoring, guidance, reward, commendation qualification...etc.
  1.4.  Personal Group's Sales
         This refers to the monthly total PV purchased by yourself, your direct down-lines and their organizations who
          have yet to achieve your level and are under your team's umbrella.
  1.5.  Sales Auxiliary
          These are the auxiliary which can assist distributors to understand and develop Grand Sun business, such as
          DVD, video tape, book...etc.
  1.6.  Distributor PV Transfer Application Form
         When one distributor transfer the products to their new down-line distributors within the organization by
          distribution price, they have to transfer the PV of these products to them. Please fill in the Purchase Order form.
  1.7.  Distributorship Change Application Form
         When one distributor plans to change rights and obligations due to work or others, fill in this form.
  1.8.  Termination of Distributorship Application Form
          When one distributor voluntarily plans to end all rights and obligations of Grand Sun, fill in this form.
    II、HOW TO BECOME A DISTRIBUTOR
  2.1. Qualification
         2.1.1 21 years old & above, with a sound and legal capacity.
         2.1.2 At least 18 years old & below 21 years old with parental and legal guardian's consent.
         2.1.3 Must be legally registered company if registration as Company.
         2.1.4 Not disqualified by Grand Sun for breach of previous distributor agreements or conduct detrimental to the
                  interest of Grand Sun.
  2.2. Application Procedure
         2.2.1 Not convicted of any criminal offence and sound mind at the time of application.
         2.2.2 Recognize Grand Sun's products and purchase a copy of "Grand Sun Rules of Conduct"
         2.2.3 Having read and understood the "Independent Distributor Application Form" , complete, sign and submit.
  2.3. Attachment
         2.3.1 Registration as Individual: Furnish a photocopy of the applicant's NRIC or passport and bank statement/
                  passbook with applicant's name and account number clearly stated.
         2.3.2 Registration as Company: A copy of Registration of Company Certificate, a copy of NRIC of the person
                  in-charge and a copy of bank statement/passbook with company's name and account number clearly
                  stated.
  2.4. Distribution Authorization
          2.4.1 The Company reserves its right to reject any application without assigning any reason. Upon on the                    acceptance of the application, the applicant shall become a distributor of Grand Sun and the distributor                    agreement shall become into effect.
          2.4.2 If the information furnished in the application form are found to be untrue or the signature of the applicant
                   or his parent, legal guardian (where applicable) are found to be forged, Grand Sun shall have the liberty
                   to revoke the acceptance of such application.
          2.4.3 Every Distributor can only have one Grand Sun distributorship and cannot own other distributorship as
                   an individual or partner.
          2.4.4 Every legal married couple can own a distributorship as partner or individually ; but it is limited to direct
                   or indirect up and down-line.
          2.4.5 Distributor who joins in Grand Sun business as an individual, his/her spouse must belong to the same
                   distributorship and cannot join another line.
          2.4.6 Distributor who joins in Grand Sun business as a company, Grand Sun only authorizes the distributorship
                   to the registered applicant and does not regard other partners of the company as Distributor.
          2.4.7 Unless otherwise terminated prematurely, Distributor agreement shall remain valid from date of its
                  commencement to the 31st day of December of the following year. Henceforth, yearly renewals of such
                  agreement shall be from the 1st day of January to 31st December of the relevant year and shall be
                   automatic subject to the Distributor having achieved 500PV or more for the year preceding the relevant
                  year of renewal. Where 500PV or more is not achieved by the Distributor for any year, the Distributor
                  agreement shall expire on the 31st day of December of the said year and the Distributor agreement shall
                  not be renewed for the following year.
  2.5. Termination of distributorship
         The Distributor may terminate the Distributor agreement at anytime and for any reason upon written notice to
         the Company. However, such Distributor shall be barred from making any fresh application to the Company for
         a period of six months from the date of such termination.
  2.6. Cancelling the Distributorship
          2.6.1 If the Distributor does not make any purchase for one year or proceed the contract extension process,
                   then the distributorship will be given up automatically. Grand Sun has the right to cancel the distributorship.
          2.6.2 If the Distributor violates the laws or business rules, Grand Sun has the right to cancel the distributorship.
  2.7. Suspending the Distributorship
         2.7.1 If the Distributor does not purchase above 500 PV or proceed with the contract extension process, the
                  contract will be suspended automatically.
         2.7.2 If the distributor wants to restore the distributorship, he/she must purchase above 500 PV ; this
                  restoration period cannot be over 3 months. The restoration will be immediately effective.
    III、RIGHTS AND OBLIFATIONS OF A DISTRIBUTOR

  3.1. Purchase
         3.1.1 Distributors should stock appropriate quantity according to actual needs, and not excess quantity which is
                  unrealistic to be sold within a short time.
         3.1.2 Grand Sun forbids distributors' inappropriate stocking or buy-up of goods for the purpose of qualification
                   for promotion.
         3.1.3 Upon receipt of goods, the Distributor shall inspect the same. Any discrepancy between the goods
                   ordered and the goods delivered and any defect in the goods shall be reported to the Company
                   immediately. Any request for replacement of goods shall be notified to the Company within three (3)
                   days from the date of receipt of such goods, failing which, the Distributor shall be deemed to have
                   accepted such goods.
  3.2. Selling
          3.2.1 Distributors have to sell Grand Sun's products to different retailing customers so that they can obtain
                   personal group's sales bonus.
          3.2.2 Distributors are personally responsible for the tax produced from the proper running of the business.
  3.3. Sponsoring: Distributors have the right to sponsor others to become distributors.
         Sponsors have to provide a complete instruction and information of this business for referrals, but sponsors are
         not allowed to force them to do the following:
          3.3.1 Purchase or stock the quantity or sales auxiliary regulated by sponsors .
          3.3.2 Purchase the tickets of seminar or convention not held by Grand Sun.
          3.3.3 Purchase any sales promotion kit not produced by Grand Sun.
  3.4. Sponsors should explain the regulations in the sales kit honestly to referrals should not deceive or mislead them
          into signing the "application form". The following items should be made clear to the referrals:
           3.4.1 Grand Sun's multi-level marketing organization and plan.
           3.4.2 Interests and reward system that distributors can obtain via selling products.
           3.4.3 Grand Sun's product type, price and quality.
           3.4.4 The conditions governing distributor's withdrawal from Grand Sun, their rights and obligations of
                    withdrawal.
           3.4.5 The guarantee and responsibility of product defect.
           3.4.6 Goods returning rules.
           3.4.7 Distributors' obligations.
  3.5. Sponsors should issue rewards to down-lines' before the 15th of the following month If it is not executed and
          the matter is confirmed by Grand Sun, the Distributor's distributorship will be terminated and he/she will have
          to take personal legal liability.
  3.6. If any sponsor who contravenes Grand Sun's Rules and Regulations may have his/her distributorship cancelled
         and the rewards coming from down-line organizations will be transferred to the direct up-line.
  3.7. Terms governing sales by the Distributor
         3.7.1 Distributors should use the instructions and information listed on labels or official documents to explain
                  and sell products.
         3.7.2 Distributors should sell Grand Sun's products according to Grand Sun's suggested prices and should not
                   reduced prices. If there is any such behavior causing others' losses, then Grand Sun has the right to end
                   the distributorship and ask them to return all organizational rewards.
         3.7.3 Do not explain the product functions via malicious, deceptive and exaggerated ways. If there is any
                  behavior leading to damage on Grand Sun's image and credibility, one would be subjected to individual
                  legal responsibility.
         3.7.4 In order to promote the principle of Grand Sun's product distribution and ensure consumers'
                  understanding about the usage of Grand Sun's products, distributors are not allowed to demonstrate
                  Grand Sun's products or sales auxiliary in general retailing markets (such as stall, store, market, internet,
                  exhibition...etc.) without Grand Sun's official consent.
         3.7.5 Distributors are not allowed to indicate that they have the exclusive selling right or right to certain area.
         3.7.6 To protect the rights of down-lines, when providing down-lines with products, Distributors should attach
                  "Delivery Order " with signature on it, as this will be used for the basis for reward calculation.
         3.7.7 To ensure all distributors' rights, Distributors are not allowed to sell Grand Sun's products and sales
                  auxiliary to lines or organizations who are not sponsored by themselves (i.e. they cannot supply goods to
                  cross-line).
         3.7.8 Distributors are not allowed to sell products not produced by Grand Sun via the name of Grand Sun. If
                   there is any behavior leading to the damage on Grand Sun's credit, one would be subjected to individual
                   legal responsibility.
         3.7.9 Distributors are not allowed to purchase goods via the name of down-line to obtain illegal rewards.
  3.8. Partnership
         When Distributors join Grand Sun as a single status, his distributorship cannot be shared with another party.
  3.9. Married
         When two single Distributors married each other, they can maintain and operate each original system or apply
         to end one's distributorship (the down-line organizations of the spouse ending the distributorship would have to
         remain in the original organization).
  3.10. Divorce
           3.10.1 If one couple of distributor gets divorce, then after negotiation one of them should fill in "Distributorship
                      amendment application form" and attach related documents.
           3.10.2 After one of them drops out, he or she can re-join Grand Sun at any time.
           3.10.3 For other matters, Grand Sun will deal with them according to civil law.

    IV、Distributor Rules of Conduct
  4.1. Distributors should understand that all dealings related to Grand Sun are done by individual who has signed the          contract. Distributors are not allowed to indicate or imply that they are the representatives, agents and
         employees authorized by Grand Sun. They are not allowed to represent Grand Sun to give announcement or          guarantee. Distributors have the rights to sell Grand Sun's products and sponsor new distributors and have to
         fulfill the obligations of distributors within the authorization period.
  4.2. Distributors have to ensure down-lines understand that the relationship of "up-line and down-line" belongs to
         one among individual distributors. Distributors have the responsibilities to train and motivate down-lines.
  4.3.Except Grand Sun's official announcement or consent letter, distributors are not allowed to perform any
         request, announcement or guarantee about Grand Sun or its products. If any distributor's disobedience
         causes any tangible and intangible loses or legal responsibility, he/she should be personally liable for it. Grand
         Sun reserves the right to take legal action and can inform him/she via document about distributorship
cancelation.
  4.4. Distributors should obey all regulations of the Singapore Government and guarantee to avoid Grand Sun's
         involvement with any suit or compensation of damage.
  4.5. Without Grand Sun's official consent, distributors are not allowed to be involved in other distribution business,
         sell products which are the same or similar with Grand Sun's, or introduce Grand Sun's distributors to run
         other distribution business.
  4.6. As distributors do distribution business (such as selling, sponsoring, guidance etc.), if there is any situation that
         damages Grand Sun's reputation, rights and interests or affects distributors' reputation, rights and interests,
         coherence and harmony, Grand Sun has the right to take disciplinary action.
  4.7. Distributors are not allowed to embezzle or adjust down-lines' PV
  4.8. Distributors are not allowed to do the following
         4.8.1 Promote and sell products or labor or introduce people to join in the organization via deceptive or
                  misleading methods.
         4.8.2 Collect funds from others in the name of multi-level marketing business or organization.
         4.8.3 Do multi-level marketing activities via the methods which disobeys public order or morality.
         4.8.4 Affect the dealing order of market or cause consumers' losses via inappropriate direct visit.
         4.8.5 Conduct multi-level marketing activities contravening criminal law or other industry and business
                  management regulations .
  4.9. If any Grand Sun distributor disobeys the above regulations and the circumstance is regarded as significant by
         Grand Sun, then the distributorship will be terminated and the distributor will lose the qualification to re-join
         GrandSun as distributor forever.
    五、OBLIGATION OF DISTRIBUTORS ABOVE SALES DISTRIBUTOR LEVEL
  5.1. Conduct meeting regularly to train and motivate down-lines. For those who unable to attend the meetings,
         up-line should offer necessary helps via phone or mail. 
  5.2. Keep in touch with down-line distributors frequently.
  5.3. Guide down-line distributors to obey and implement Grand Sun Business Rules of Conduct.
  5.4. Pass important information announced by Grand Sun to down-line distributors, including meeting time,
         location, product information, training etc.
  5.5. SV management system: according to Grand Sun's announcement.
    六、PRINCIPLE OF MAINTAINING DISTRIBUTOR SYSTEM

  6.1. Distributorship transfer
         Individual distributor is allowed to apply to Grand Sun for sponsor change of, but is not allowed to transfer the
         whole group.
         Application procedure:
         6.1.1 Fill in "Application Form of Distributorship Termination". After 6 months from date of Grand Sun's
                  consent letter, distributor can re-join Grand Sun. During those 6 months, they cannot execute any
                  distributorship roles and activities (including attending any Grand Sun's distribution activities)
         6.1.2 After obtaining the consent letter of immediate up-line sales distributors and 2nd generation sales
                  director, distributors can start to apply for line transfer.
         6.1.3 If one down-line wants to follow the up-line who applies for transfer, then this down-line has to suspend
                  the distributorship for one year, before he is allowed to transfer line.
         6.1.4 To protect the rights and interests of the original sponsoring system and maintain the completeness of
                  distribution system, Grand Sun has the absolute discretion on line transfer. All application for line transfer
                  will be effective after getting the approval document of Grand Sun.
  6.2. To maintain the harmony of the system and protect the rights and interests of up-line distributors, distributors
         are not allowed to lead or instigate one distributor to leave the original system directly or indirectly.
  6.3. Distributor is not allowed to join another sponsoring system to exercise the distributorship in the name of
         others before completing the above procedure if he wants to transfer line.
  6.4. Inheritance of distributorship
         6.4.1 Within 60 days after the official notification of inheritance, the legal inheritor can apply to Grand Sun to
                  effect the inheritance. After it is approved, it will be effective. If the application is not applied within 60
                  days, then it will be deemed as abandoning the rights.
         6.4.2 For others, Grand Sun will handle them according to the regulations of civil law.

    七、USAGE OF "GRAND SUN" TITLE

  7.1. Trademark of Grand Sun
         7.1.1 The title, trademark, and label of "Grand Sun" are all registered. They cannot be used without Grand
                  Sun's authorization and consent letter.
         7.1.2 If distributors need to use them, they have to apply for the authorization letter. The extension of
                  authorization has to be applied for yearly.
  7.2. Grand Sun's copyright
         All Grand Sun's works such as magazine, sales auxiliary, document, video(audio) tape, artistic work, figure,
         speech are protected by Singapore's copyright law. No one is not allowed to use Grand Sun's copyright
         without authorization. If there is any violation or damage on Grand Sun's rights, interests and credit, Grand
         Sun will ask for compensation and take legal action.          
  7.3. To avoid distributors' violation of laws related to trademark and maintain Grand Sun's reputation, distributors
         are not allowed to broadcast or publish any advertisement related to Grand Sun business or its products in
         media or publication or other similar promotion channel to promote the business. Grand Sun has the right to
         revoke the distributorship and ask for compensation and take legal action of those distributors who violate the
         above clause.

    八、DISCIPLINARY CLAUSES
  8.1. The implementation of "disciplinary clauses" is aimed to maintain and ensure the normal operation of distribution
         system. Grand Sun will not hesitate to take action under "disciplinary clauses" on the distributors who has been
         found to violate Grand Sun's Business Rules of Conduct or interfere with the normal operation of the system.
  8.2. Grand Sun has the right to take the following disciplinary action to correct distributors' inappropriate behaviors
         on distributors who violate the rules in 8.4 after Grand Sun's confirmation: 1. two steps: warn distributors and
         revoke distributorship 2. revoke distributorship immediately, without prior warning issued.
  8.3. The rights and interests of distributors who are disciplined will differ according to the degree of the violation.
         8.4 are the behaviors against the rules.
  8.4. Behaviors against the rules:
         8.4.1 Poached down-lines (the down-line organization should return to the original system due to line snatch)
         8.4.2 Price cut/undercutting
         8.4.3 Sell goods to "cross-line" (to distributors of other lines)
         8.4.4 Display goods, consign goods to others to sell, publish prices on website, e-media
         8.4.5 Result in Grand Sun's losses of interests caused by inciting or seducing distributors to violate Grand Sun's
                  business rules
         8.4.6 Publicize advertisements in Grand Sun's name on newspaper, magazine or other media without prior and
                  proper authorization.
         8.4.1 Damage Grand Sun's reputation, interests, or rights via words and behaviors
         8.4.2 Use Grand Sun's trademark or violate copyright laws without authorization
         8.4.3 Misappropriate down-line's PV and cause their losses ( such distributors should return the PV).
         8.4.4 Embezzle down-lines' reward on purpose or issue incorrect reward ( such distributors should return the
                  reward).
         8.4.5 Up-line incites down-line to buy-up goods inappropraitely.
         8.4.6 Purchase goods via others' names and cause their losses of rights and interests (such distributors should
                  compensate them).
         8.4.7 Use the occasion of Grand Sun gathering to do non-Grand Sun business to make personal profit.
         8.4.8 Disturb company's workplace and training site maliciously
         8.4.9 Promote and sell products or labor or introduce people to join in the organization via deceptive or
                  misleading methods
       8.4.10 Collect funds from others in the name of multi-level marketing business or organization
       8.4.11 Do multi-level marketing activities via the methods which disobeys public order or morality
       8.4.12 Affect the dealing order of market or cause consumers' losses via inappropriate direct visit
       8.4.13 Conduct multi-level marketing activities contravening criminal law or other industry and business
                  management regulations
  8.5. Disciplinary boundary
         8.5.1 As distributors violate regulations 8.4 (2) and 8.4 (7) for the first time, Grand Sun will revoke the
                  distributorship immediately.
         8.5.2 As distributors violate the rules "except 8.4 (2), 8.4 (7)" for the first time, Grand Sun will issue a warning
                  and if they violate a second time, Grand Sun will revoke the distributorship.
         8.5.3 All violated behaviors will be disciplined via the above rules. For others related to laws, Grand Sun will
                  retain their prosecution rights.