FREQUENTLYASKED

QUESTIONS

2 | Q10 FAQs

ENROL AS AN IR

QUALIFICATION

ACTIVATION

RETAIL PROFIT EARLY PAYOUT

STEPCOMMISSIONS

REPEAT SALES POINTS

RSP RANK ADVANCEMENT AND MAINTENANCE BONUSES

RSP RANK ADVANCEMENTAND MAINTENANCE

MAIN PLAN RANK ADVANCEMENT AND MAINTENANCE

COMPRESSIONPOLICY

YEAR-ROUND INCENTIVES

NEW PROGRAMME BONUS

DEMOTION POLICY

4 5 67 8

10 1513

16 17

19 1919

9

TABLE OF CONTENTS Q10COMPENSATION

PLAN 3

Q10 FAQs | 3

Q10 COMPENSATION PLAN

Q1. WHAT IS THE Q10 COMPENSATION PLAN?A1. The Q10 Compensation Plan is the super hybrid QNET Compensation Plan that powerfully rewards Independent Representatives through 10 Ways to Earn.

Q2. WHAT ARE THE 10 WAYS TO EARN IN THE Q10 COMPENSATION PLAN?A2. 10 Ways to Earn Commissions 1. RetailProfit 2. Early Payout 3. Step Commission 4. Repeat Sales Commission 5. RSP Rank Advancement Bonus 6. RSP Rank Maintenance Bonus 7. Main Plan Rank Advancement 8. Main Plan Rank Maintenance 9. New Programme Bonus 10. Year-Round Incentives

4 | Q10 FAQs

ENROL AS AN IR

Q1. WHAT IS AN INDEPENDENT REPRESENTATIVE (IR)?A1. An Independent Representative or ‘IR’ is a person who is enrolled in the Q10 Compensation Plan. An IR builds a business organisation by selling products and referring others to also become an IR.

Q2. CAN ANYONE ENROL TO BECOME A QNET IR?A2. No. A person must be of legal age in his/her country to enrol as an IR.

Q3. HOW CAN A CUSTOMER ENROL TO BECOME A QNET IR? A3. A customer can enrol online to become a QNET IR at the QNET website (www.qnet.net).

Q4. IS THERE ANY FEE WHEN ENROLLING AS A QNET IR?A4. During enrolment, a new IR must sign up for the USD 30 Annual IRship package; the annual IRship package provides the following tools and access: • AccesstoyourVirtualOffice. • AccesstotheQNETeStore. • Business,marketingandeCommercetools.

Q5. IS THERE ANY FEE TO ANNUALLY RENEW MY INDEPENDENT REPRESENTATIVESHIP (IRSHIP)?A5. QNET offers the existing IR a USD 30 Annual IRship package on every IR’s Anniversary date to maintain his/her record, services and tools since enrolment. The package includes the following: • ContinuousAccesstoyourVirtualOffice. • ContinuousAccesstotheQNETeStore. • ContinuousAccesstoBusiness,marketingandeCommercetools.

Q6. CAN A CUSTOMER ENROL AS A QNET IR EVEN WITHOUT A REFERRER?A6. No. A customer must have a Referrer who is an existing QNET IR before he/she can enrol online as an IR through the QNET website (www.qnet.net). In the case that the customer does not know any Referrer, QNET will assign an IR ID number to him/her to be the referrer’s IR ID.

Q7. WHAT IS TRACKING CENTRE OR ‘TC’?A7. A Tracking Centre, or ‘TC’, is the account granted to the IR upon enrolment that shows his/her position in the Company’s database. Commissions and/or bonuses are calculated with reference to each Tracking Centre.

Q8. HOW MANY TRACKING CENTRES (TCS) DOES A NEW IR GET UPON ENROLMENT? A8. A new IR gets one (1) Primary Tracking Centre (TC 001) and two (2) Secondary Tracking Centres (TC 002 and TC 003).

Q9. CAN A NEW IR IMMEDIATELY PURCHASE ANY PRODUCT FROM THE ESTORE UPON ENROLMENT?A9. Yes.

Q10. UPON ENROLMENT, CAN THE NEW IR AVAIL OF THE IR DISCOUNTED PRICE ON THE FIRST PURCHASE OF QNET PRODUCTS?A10. AnIRcanonlyavailoftheIR’sdiscountedpriceafterhisfirstqualifyingpurchaseatRetailPrice.The subsequent purchases will be at the IR discounted price.

Q11. WHAT IS THE DIFFERENCE BETWEEN MAIN PLAN AND RSP PLAN? DO I NEED TO DO BOTH IN ORDER TO EARN COMMISSIONS?A11. The difference between the Main Plan and RSP plans are: 1. Main Plan Tree is based on placement of TCs and commission is based on accumulated Business Volume (BV). 2. RSP Plan Tree is based on line of referralship and commission is based on accumulated Retail Sales Points (RSP) up to 10 levels depending on RSP Rank.

No, it’s up to you which plans you want to participate in. You can do both for more income opportunity.

Q10 FAQs | 5

Q1. HOW CAN A NEW IR QUALIFY HIS/HER TRACKING CENTRE?A1. A new IR must allocate a minimum of 500 BV to each of his/her Tracking Centres by selling to Retail Customer(s) or by making Personal Purchase(s) of any QNET product(s).

QUALIFICATION

TRACKING CENTRE

001

002

003

004 and subsequent TCs

500 BV

500 BV

500 BV

1,000 BV

REQUIRED QUALIFYING BV

Q2. WHAT IS BUSINESS VOLUME ‘BV’?A2. BusinessVolume,or‘BV’,isthepointvalueassignedtoeachQNETproductusedforQualificationof Tracking Centres and basis for calculation of Step Commission.

Q3. HOW CAN AN IR ACHIEVE THE REQUIRED BV TO QUALIFY HIS/HER TRACKING CENTRE?A3. An IR can achieve the required qualifying BV by either selling QNET products to a Retail Customer or purchasing QNET products for personal consumption.

Q4. CAN AN IR USE THE BV ACHIEVED FROM REPEAT SALES TO QUALIFY HIS/HER TRACKING CENTRES?A4. Yes. An IR can accumulate a minimum of 500 BV from Repeat Sales to Qualify his/her Tracking Centres.

Q5. CAN AN IR USE THE BV ACHIEVED FROM HIS/HER RETAIL SALE TO QUALIFY HIS/HER TRACKING CENTRES?A5. Yes.

Q6. CAN THE BV CURRENTLY PLACED IN THE IR’S BV BANK QUALIFY THE IR’S TRACKING CENTRE?A6. No.TheIRisrequiredtoallocatetheBVtoanyofhis/herTrackingCentresforQualification.

Q7. WILL THE BV FROM RETAIL SALE AUTOMATICALLY QUALIFY THE TRACKING CENTRE OF THE REFERRER?A7. No. The BV from Retail Sales will be stored in the Referrer’s BV Bank. The Referrer must allocate the BV to any ofhis/herTrackingCentresfromBVBankforQualification.

Q8. CAN AN IR COMBINE BV FROM HIS/HER RETAIL SALES AND PERSONAL PURCHASES TO ACCUMULATE 500 BV FOR QUALIFICATION OF A TRACKING CENTRE?A8. Yes.

Q9. CAN AN IR SPLIT 1,000 BV FROM RETAIL SALE OR PERSONAL PURCHASE OF ONE (1) PRODUCT AND ALLOCATE 500 BV EACH TO HIS TWO (2) TRACKING CENTRES FOR QUALIFICATION?A9. Yes.

Q10. CAN AN IR TRANSFER BV TO ANOTHER IR TO QUALIFY A TRACKING CENTRE?A10. No.

6 | Q10 FAQs

ACTIVATION

Q1. HOW CAN AN IR ACTIVATE HIS/HER TRACKING CENTRES?A1. AnIRmustfirstQualifyhis/herTrackingCentrebeforeActivation.AQualifiedIRcanactivatehis/herTracking Centre by achieving and allocating a minimum of 500 BV on each side of any of his Tracking Centres through Personal Sponsorship, Retail Sales, Personal Purchases or a combination of the three options.

Q2. CAN AN IR USE THE BV FROM RETAIL SALE TO ACTIVATE HIS/HER IRSHIP?A2. Yes,providedthattheIRhasfulfilledtherequired500QualifyingBVallocatedtoeachsideoftheTracking Centre.

Q3. CAN THE IR USE THE BV FROM HIS/HER PERSONAL PURCHASE OF QNET PRODUCT(S) TO ACTIVATE HIS/HER IRSHIP?A3. Yes,providedthattheIRhasfulfilledtherequired500QualifyingBVallocatedtoeachsideoftheTracking Centre.

Q4. CAN AN IR COMBINE BV FROM RETAIL SALE AND PERSONAL PURCHASE OF QNET PRODUCTS TO ACTIVATE HIS/HER IRSHIP? A4. Yes,providedthattheIRhasfulfilledtherequired500QualifyingBVallocatedtoeachsideoftheTracking Centre.

Q5. CAN AN IR USE THE BV OF HIS/HER QUALIFIED DIRECT REFERRALS TO ACTIVATE A TRACKING CENTRE?A5. Yes.

Q6. CAN AN IR COMBINE BV FROM PERSONAL PURCHASE OF QNET PRODUCTS AND FROM PURCHASES OF QUALIFIED DIRECT REFERRALS TO ACTIVATE A TRACKING CENTRE?A6. Yes.

Q7. CAN AN IR ALLOCATE MORE THAN 500 BV TO HIS/HER PRIMARY TRACKING CENTRE (TC 001)?A7. Yes. An IR can allocate more than 500 BV to TC 001 or any other Tracking Centres but he/she is not allowed to reallocate it to other Tracking Centre extensions later on.

Q8. WILL AN IRSHIP BE ACTIVATED WHEN TWO (2) QUALIFIED DIRECT REFERRALS ARE PLACED IN ONE SIDE OF A TRACKING CENTRE?A8. No.

Q9. CAN AN IR ACTIVATE HIS/HER IRSHIP WITHOUT FIRST QUALIFYING THE IRSHIP?A9. Yes, an IR can Activate his/her Tracking Centre but any BV from his/her downlines will not be counted to his/herGBVunlesstheIRisQualifiedonthesameweekoftheActivation.

Q10. CAN AN IR QUALIFY HIS/HER SECONDARY TC 002 OR TC 003 BEFORE PRIMARY TC 001? A10. No. First purchase of product(s) with 500 BV is automatically allocated to Primary TC (TC 001) for Qualification.

Q10 FAQs | 7

RETAIL PROFIT

Q1. WHAT IS RETAIL PROFIT?A1. RetailProfitisatypeofcommissionpaidtotheIRforsellingQNETproductstoaRetailCustomer.Itis equivalent to the difference between the Retail Price and IR’s discounted price.

Q2. DOES AN IR NEED TO BE QUALIFIED AND ACTIVATED TO EARN THE RETAIL PROFIT?A2. No.AnIRcanimmediatelyearnRetailProfitfromRetailSaleuponsuccessfulenrolment.

Q3. WHEN IS THE RETAIL PROFIT PAID TO THE REFERRER?A3. Retailprofitispaidtothereferreronthecorrespondingcommissionweekbycreditingtheamountto his/her Q Account.

Q4. CAN AN IR EARN RETAIL PROFIT FROM PURCHASES OF PRODUCTS WITH BV BELOW 500 BV OF HIS/HER RETAIL CUSTOMERS OR DIRECT REFERRALS?A4. Yes.

Q5. WHAT IS FIRST PURCHASE PROFIT (FPP)?A5. FirstPurchaseProfitisthecommissionpaidtotheIRwhenhis/hernewDirectReferralmadethefirst qualifying purchase of any QNET products at Retail Price. It is equivalent to the difference between the Retail Price and IR’s discounted price.

Q6. DOES AN IR NEED TO BE QUALIFIED AND ACTIVATED TO EARN THE FIRST PURCHASE PROFIT (FPP)?A6. No.AnIRcanimmediatelyearnFirstPurchaseProfit(FPP)uponsuccessfullyreferringaQualifiedDirect Referral.

Q7. WHEN IS THE FIRST PURCHASE PROFIT (FPP) PAID TO THE IR?A7. FirstPurchaseProfit(FPP)ispaidtotheIRonthecorrespondingcommissionweekbycreditingtheamount to the IR’s Q Account.

Q8. CAN AN IR EARN THE FIRST PURCHASE PROFIT FROM THE PURCHASES OF REPEAT PRODUCTS BY HIS/HER DIRECT REFERRALS WITH LESS THAN 500 BV?A8. Yes.AnIRwillcontinueearningRetailProfitfromthepurchasesoftheDirectReferraluntilDirectReferral becomesQualified.

Q9. CAN AN IR EARN THE FIRST PURCHASE PROFIT FROM THE FIRST PURCHASE OF HIS/HER DIRECT REFERRAL WHO IS ALREADY QUALIFIED FROM RETAIL SALE?A9. No.AnIRcanonlyearnFirstPurchaseProfitfromthepurchasethatqualifiesthefirstTrackingCentreof his/her Direct Referral.

Q10. WHAT IS Q ACCOUNT?A10. Q Account is an accounting record of the IR’s earned commissions/bonuses accessible from IR’s Virtual Office(VO).

8 | Q10 FAQs

EARLY PAYOUT

Q1. WHAT IS EARLY PAYOUT?A1. Early Payout is the advance partial payment of Commission Step 1 of the Commission Cycle 1, amounting toUSD50forthefirst1,000GBVandUSD50forthesecond1,000GBVonthelowervolumelegunderthe PrimaryTrackingCentrewithinthespecifiedtimeframe.

Q2. HOW CAN AN IR START EARNING THE EARLY PAYOUT? A2. AnIRmustbeQualified,ActivatedandachievetherequiredminimumGBVinanyoftheLowerVolumeLeg of the Primary Tracking Centre.

Q3. WHAT DOES GROUP BUSINESS VOLUME (GBV) MEAN?A3. Group Business Volume is the total BV achieved from the left and right downline group.

Q4. HOW DOES THE EARLY PAYOUT WORK? A4. TheEarlyPayoutonlyappliestoaQualifiedandActivatedPrimaryTrackingCentre(TC001)inCommission Cycle 1, Step 1 that achieves the required Group Business Volume (GBV) in any of the lower volume leg within the given time frame and is paid according to the Commission Schedule.

This illustrates Payout to IRs under Bronze Star Rank:

Q5. CAN THE IR EARN THE EARLY PAYOUT AT ANY RANK?A5. No. the Early Payout is paid to IR at either Bronze Star or Silver Star rank.

GROUP BUSINESSVOLUME IN ANY

LOWER VOLUME LEG(GBV)

TIMEFRAME

EARLYPAYOUT

(USD)

1,000 BV

1,000 BV

1,000 BV

USD 50

USD 50

USD 100

Withinthefirstfourweeksfrom IR’s registration date.

Withinthefirstsixweeksfrom IR’s registration date.

- NA -

Q10 FAQs | 9

USD 300

10 EP

STEP COMMISSIONS

Q1. WHAT IS STEP COMMISSION?A1. StepCommissionisthecommissionpaidtotheQualifiedandActivatedIRforevery3,000GBVonanyof his/her Lower Volume Leg.

Q2. HOW MUCH IS THE PAYOUT PER COMMISSION STEP? A2. The payout per commission step varies with the IR’s Rank and Commission Level. From Step 1 to Step 5, the payout will be in monetary value. At Step 6, the payout will be in eVouchers, equivalent to 10 eVoucher Points (EP), which are used to redeem exclusive products in the QNET Redemption eStore. Please refer to the Commission payout table below.

Q3. HOW WILL AN IR START EARNING THE STEP COMMISSION? A3. AnIRmustbeQualified,ActivatedandachievetheminimumrequiredGBVinanyoftheLowerVolumeLeg to start earning Step Commissions.

Q4. WHAT IS LOWER VOLUME LEG?A4. The Lower Volume Leg is the Group Business Volume in which the Step Commission is being calculated.

Q5. WHAT IS 10 EP EARNED BY THE IR AT THE 6TH COMMISSION STEP?A5. 10 EP is 10 eVoucher Points earned every 6th Commission Step of a Commission Cycle and can be used to redeem QNET products in the QNET Redemption eStore.

STEPRANK

BRONZESTAR

SILVERSTAR

GOLDSTAR

PLATINUMSTAR

DIAMONDSTAR

BUSINESSVOLUME

IN ANY LOWERVOLUME LEG, (BV)

1

2

3

4

5

6

3,000 BV

3,000 BV

3,000 BV

3,000 BV

3,000 BV

3,000 BV

USD 200

USD 200

USD 200

USD 200

USD 200

10 EP

USD 225

USD 225

USD 225

USD 225

USD 225

10 EP

USD 250

USD 250

USD 250

USD 250

USD 250

10 EP

USD 275

USD 275

USD 275

USD 275

USD 275

10 EP

USD 300

USD 300

USD 300

USD 300

USD 300

10 EP

10 | Q10 FAQs

REPEAT SALES POINTS (RSP)

Q1. WHAT IS REPEAT SALES COMMISSION?A1. Repeat Sales Commission is the cash converted from the earned Repeat Sales Points (RSP).

Q2. WHAT ARE REPEAT SALES POINTS (RSP)? A2. Repeat Sales Points mean points assigned to each QNET product that an Active IR can earn from up to maximum ten (10) Pay Levels and are automatically converted into cash on a weekly basis.

Q3. WHAT IS PAY LEVEL?A3. Pay Level refers to a position in the RSP Plan genealogy from which the Active IR is eligible to earn RSP.

Q4. HOW CAN AN IR QUALIFY TO EARN RSP? A4. An IR must be Active in the RSP Plan by achieving the minimum Monthly RSP Maintenance requirement for his/her current rank from either Retail Sales or Personal Purchases of any QNET products.

Q5. WHAT IS THE MINIMUM MONTHLY RSP MAINTENANCE REQUIREMENT FOR AN IR TO QUALIFY TO EARN RSP FROM HIS/HER DOWNLINES?A5. An IR must meet the minimum Monthly RSP Maintenance requirement for his/her current rank. Please refer to the table below.

Q6. CAN AN IR MAINTAIN THE MINIMUM MONTHLY RSP MAINTENANCE REQUIREMENT IN ADVANCE IN THE RSP PLAN TO CONTINUE EARNING RSP FROM DOWNLINES?A6. Yes, an IR can maintain the minimum Monthly RSP requirements up to twelve (12) months in advance in the RSP Plan. Any extra earned RSP will not be carried forward to the following year for the IR’s monthly RSP Maintenance, RSP Rank Advancement or Maintenance.

RSP RANK

Bronze Star

Silver Star

Gold Star

Platinum Star

Diamond Star

50 RSP

100 RSP

150 RSP

200 RSP

250 RSP

MONTHLY RSP REQUIREMENT

Q10 FAQs | 11

Q7. HOW CAN AN ACTIVE IR ACCUMULATE RSP?A7. An active IR can accumulate RSP from all product purchases made through Retail Sales, Personal Purchases and purchases of downlines within the IR’s network or line of referralship. The table below illustrates RSP distribution for each rank when an IR meets the minimum Monthly RSP Maintenance requirements and each downline makes a purchase with 50 RSP each. IR gets double RSP from Pay Level 2.

Q8. CAN AN ACTIVE IR ACCUMULATE RSP FROM THE REPEAT SALES MADE BY ALL DOWNLINES? A8. No. An Active IR can only earn RSP from downlines within his/her network or line of referralship of up to 9 Pay Levels below, depending on his/her current rank.

Q9. CAN AN IR EARN RSP FROM THE REPEAT SALES MADE TO HIS/HER DIRECTLY REFERRED RETAIL CUSTOMERS?A9. Yes.

Q10. CAN AN IR EARN REPEAT SALES POINTS (RSP) FROM HIS OWN PURCHASE(S)?A10. Yes.

Q11. CAN THE IR ACCUMULATE RSP FROM TWO (2) OR MORE ORDER TRANSACTIONS OR RETAIL SALES OR A COMBINATION OF BOTH TO MEET THE MINIMUM MONTHLY RSP MAINTENANCE?A11. Yes.

Q12. CAN AN IR EARN RSP FROM HIS/HER RETAIL SALES OR PERSONAL PURCHASES EVEN IF HE FAILS TO MEET THE MINIMUM MONTHLY RSP MAINTENANCE REQUIREMENT FOR HIS/HER CURRENT RANK?A12. Yes.

250

100

50

50

50

50

50

50

50

50

750

100

100

50

50

50

50

400

150

100

50

50

50

50

50

50

550

200

100

50

50

50

50

50

50

50

650

50

100

50

50

250

Level 1 (Retail Sale/Personal Purchase)

Level 2 (Double RSP)

3

4

5

6

7

8

9

10

Total Earned RSP

RSP RANK

BRONZESTAR

SILVERSTAR

GOLDSTAR

PLATINUMSTAR

DIAMONDSTAR

LEVEL

12 | Q10 FAQs

Q13. ARE THE REPEAT SALES POINTS (RSP) TRANSFERABLE FROM ONE IR TO ANOTHER?A13. No.

Q14. ARE THE REPEAT SALES POINTS (RSP) CONVERTIBLE TO BV?A14. No.

Q15. DO RSP EXPIRE?A15. No. There is no expiration for converting RSP into cash. RSPs are automatically converted into cash on a weekly basis. However, the validity of RSP for Monthly RSP Maintenance, Rank Advancement and Rank Maintenance is only up to twelve (12) months from the RSP earned date.

Q16. WHAT IS THE CASH VALUE OF THE RSP?A16. RSP is converted into cash based on the ratio of USD 300 for every 10,000 RSP earned.

Q17. CAN AN IR CHOOSE TO FOCUS ON EARNING COMMISSIONS FROM RSP AND NOT EARN STEP COMMISSION?A17. Yes, as long as the IR is active under the RSP Plan by meeting the minimum Monthly RSP Maintenance requirement of his/her current RSP rank.

Q18. IF AN IR ACHIEVES THE MINIMUM MONTHLY RSP MAINTENANCE ON 18 APRIL 2015, WHICH IS THE MIDDLE OF THE CURRENT MONTH, UP TO WHICH DATE, HIS/HER RSP MAINTENANCE IS VALID?A18. The Monthly RSP Maintenance of the IR is valid from the following commission week of the current month, when he/she earned the RSP, up to the last commission week of the following month.

Q19. WHEN WILL THE RSP MAINTENANCE FOR A BRONZE STAR OR SILVER STAR IR TAKE EFFECT?A19. The RSP Maintenance of a Bronze Star or Silver Star IR will take effect on the same week when he/she achieves the RSP from Retail Sales or Personal Purchases.

Q20. WHEN WILL THE RSP MAINTENANCE FOR A GOLD STAR, PLATINUM STAR AND DIAMOND STAR TAKE EFFECT?A20. The RSP Maintenance of a Gold Star, Platinum Star and Diamond Star will take effect on the following week from the earned RSP date.

REPEAT SALES POINTS (RSP)

Q10 FAQs | 13

Q1. WHAT ARE THE FIVE (5) RSP RANKS IN THE RSP PLAN? A1. There are (5) RSP ranks in the RSP Plan:

Q2. AS AN RSP BRONZE STAR, HOW CAN AN IR START EARNING RSP FROM DOWNLINES?A2. To start earning as an RSP Bronze Star, an IR must: • HaveamonthlyRetailSaleorPersonalPurchasesofproductswith50RSP.

Q3. HOW CAN AN RSP BRONZE STAR IR ADVANCE TO AN RSP SILVER STAR IR IN THE RSP PLAN?A3. An RSP Bronze Star IR can choose either one of the two (2) options to advance to RSP Silver Star:

Option 1: The IR must: • HaveaRetailSaleorPersonalPurchasesofanyproduct(s)with100RSP. • Haveatleastfour(4)newDirectReferralswhobecomeactiveasRSPBronzeStars. OR Option 2: The IR must: • HaveaRetailSaleorPersonalPurchaseofproduct(s)with100RSP. • Helpatleasttwo(2)newactiveRSPBronzeStarDirectReferralsfindtwo(2)newactiveRSP Bronze Star Direct Referrals.

Q4. WHAT MUST AN IR DO IN ORDER TO ADVANCE OR MAINTAIN TO RSP GOLD STAR RANK?A4. An IR must: • BeQualifiedandActivatedundertheMainPlan(one-timerequirement). • HaveamonthlyRetailSaleorPersonalPurchasesofproductswith150RSP. • Haveatleastfour(4)neworexistingDirectReferralswhoadvancetoRSPSilverStarrankandtwo(2) new Direct Referrals who are active RSP Bronze Stars each month. • Accumulate10,000RSPfromRetailSalesorpurchasesofdownlineswithinhis/hernetworkorline of referralship each month.

Q5. WHAT MUST AN IR DO IN ORDER TO ADVANCE OR MAINTAIN RSP PLATINUM STAR RANK?A5. An IR must: • BeQualifiedandActivatedundertheMainPlan(one-timerequirement). • HaveamonthlyRetailSaleorPersonalPurchasesofproductswith200RSP. • Haveatleastfour(4)neworexistingDirectReferralswhoadvancetoRSPGoldStarrankandfour(4) new or existing Direct Referrals who advance to RSP Silver Star rank each month. • Accumulate120,000RSPfromRetailSalesorPersonalPurchasesofdownlineswithintheIR’s network or line of referralship each month.

BRONZESTAR

SILVERSTAR

GOLDSTAR

PLATINUMSTAR

DIAMONDSTAR

Q10 RSP PLAN

RSP RANK ADVANCEMENT AND

MAINTENANCE

14 | Q10 FAQs

Q6. WHAT MUST AN IR DO IN ORDER TO ADVANCE OR MAINTAIN DIAMOND STAR RANK?A6. An IR must: • BeQualifiedandActivatedundertheMainPlan(one-timerequirement). • HaveamonthlyRetailSaleorPersonalPurchasesofproductswith250RSP. • Haveatleastfour(4)DirectReferralswhoadvancetoRSPPlatinumStarrank,four(4)DirectReferrals who advance to RSP Gold Star rank and two (2) Direct Referrals who advance to RSP Silver Star rank each month. • Accumulate750,000RSPfromRetailSalesorPersonalPurchasesofdownlineswithintheIR’s network or line of referralship each month.Q7. IF A GOLD STAR ACHIEVES 150 RSP FROM RETAIL SALES OR PERSONAL PURCHASES BUT DOES NOT HAVE ANY NEW DIRECT REFERRAL, CAN HE/SHE STILL EARN RSP?A7. Yes. He/she can earn RSP as an RSP Bronze star at four (4) Pay Levels.

Q8 IF A PLATINUM STAR IR ONLY ACHIEVES THE RSP GOLD STAR MINIMUM MONTHLY RSP MAINTENANCE OF 150 RSP BUT MEETS THE MINIMUM MONTHLY REQUIREMENT FOR THE NUMBER OF DIRECT REFERRALS AND GROUP RSP FOR RSP PLATINUM STAR, WHICH RSP RANK WILL HE/SHE BE EARNING RSP?A8. He/she will earn as a RSP Gold Star with eight (8) Pay Levels.

Q9. IF A SILVER STAR IR ACHIEVES RSP SILVER STAR MINIMUM MONTHLY 100 RSP MAINTENANCE REQUIREMENT AND MEETS THE MINIMUM RSP GOLD STAR MONTHLY REQUIREMENT OF THE NUMBER OF DIRECT REFERRALS AND GROUP RSP, CAN HE/SHE CONSUME THESE EXTRA REQUIREMENTS OF HIS/HER CURRENT RANK TO UPGRADE TO RSP GOLD STAR RANK IN THE FOLLOWING MONTH?A9. No. Direct referrals and Group RSP requirements will all be consumed in one (1) month rank’s maintenance.

Q10. WHAT IS GROUP RSP?A10. ‘Group Repeat Sales Points’ or ‘Group RSP’ means the RSP that the IR earns from the Repeat Sales and Personal Purchases made by his/her downlines within his/her network or line of referralship.

RSP RANK ADVANCEMENT AND MAINTENANCE

Q10 FAQs | 15

RSP RANKADVANCEMENT AND

MAINTENANCE BONUSES

Q1. HOW MUCH CASH BONUS CAN AN ACTIVE IR EARN FROM RANK ADVANCEMENT TO RSP GOLD STAR, RSP PLATINUM STAR AND RSP DIAMOND STAR?A1. An IR will be eligible to earn cash bonus for Rank Advancement to RSP Gold Star and higher rank as follows:

Q2. IF A GOLD STAR IS DEMOTED TO RSP SILVER STAR RANK AND RE-ACHIEVES THE RSP GOLD STAR RANK THE FOLLOWING MONTH, WILL THE IR ELIGIBLE FOR A RSP RANK ADVANCEMENT BONUS?A2. No.

Q3. HOW MUCH CASH BONUS CAN AN IR EARN IF HE/SHE MAINTAINS RSP GOLD STAR, RSP PLATINUM STAR OR RSP DIAMOND STAR RANK FOR SIX (6) CONSECUTIVE MONTHS?A3. An IR is eligible to earn cash bonus if he/she maintains RSP Gold Star, RSP Platinum Star or RSP Diamond Star rank for six (6) consecutive months.

Q4. IF AN IR MAINTAINS RSP GOLD STAR RANK FOR FIVE (5) CONSECUTIVE MONTHS AND UPGRADES TO PLATINUM STAR ON THE 6TH MONTH, HOW MUCH BONUS WILL HE/SHE EARN?A4. The IR will earn USD 2,000 for maintaining RSP Gold Star rank for six (6) consecutive months.

Q5. IF AN IR MAINTAINS RSP PLATINUM STAR RANK FOR FIVE (5) CONSECUTIVE MONTHS AND DOWNGRADES TO RSP GOLD STAR RANK ON THE 6TH MONTH, HOW MUCH BONUS WILL HE/SHE EARN?A5. The IR will earn USD 2,000 for maintaining RSP Gold Star rank for six (6) consecutive months.

RANK

RANK

Bronze Star

Silver Star

Gold Star

Platinum Star

Diamond Star

Bronze Star

Silver Star

Gold Star

Platinum Star

Diamond Star

N/A

N/A

USD 200

USD 600

USD 1,200

N/A

N/A

USD 2,000

USD 6,000

USD 12,000

AMOUNT

AMOUNT

ONE-TIME RSP RANK ADVANCEMENT BONUS

RSP RANK MAINTENANCE BONUS

16 | Q10 FAQs

Q1. WHAT IS ‘COMPRESSION POLICY’ IN THE Q10 COMPENSATION PLAN?A1. ‘Compression Policy’ states that when an IR does not meet the minimum Monthly RSP Maintenance requirement designated for the IR’s current rank, he/she will be disabled from earning RSP from downlines until he/she becomes active again.

Q2. WHAT WILL HAPPEN IF AN IR DID NOT PURCHASE ANY PRODUCT AND FAILS TO ACHIEVE THE MONTHLY RSP MAINTENANCE?A2. An IR will be temporarily compressed and will not earn any RSP from the purchases of his/her downlines.

Q3. WILL AN IR BE ELIGIBLE TO EARN RSP FROM DOWNLINES IF HIS/HER ACHIEVED PERSONAL RSP IS LESS THAN THE MINIMUM MONTHLY RSP RANK MAINTENANCE OF HIS/HER CURRENT RANK?A3. Yes. An IR can still earn RSP at a certain number of Pay Levels based on his/her achieved personal RSP, directs’ performance and group RSP (whichever is applicable).

Q4. IF AN RSP PLATINUM STAR IR ACHIEVES THE REST OF THE REQUIREMENTS OF RSP PLATINUM STAR MAINTENANCE BUT ONLY ACHIEVES 100 PERSONAL RSP, WHICH RANK WILL HE /SHE WILL BE DEMOTED TO?A4. The IR will be demoted to RSP Silver Star rank.

Q5. IF A GOLD STAR IR ACHIEVES 150 RSP BUT FAILS TO ACHIEVE THE REST OF THE GOLD STAR RANK MAINTENANCE REQUIREMENTS, TO WHICH RANK HE/SHE WILL BE DEMOTED?A5. IR will be demoted to Bronze Star rank

COMPRESSIONPOLICY

RSPRANK

MONTHLY RSPMAINTENANCE

PAY LEVELS

ANY RANK

BRONZE STAR

SILVER STAR

GOLD STAR

PLATINUM STAR

DIAMOND STAR

0 — 49 RSP

50 — 99 RSP

100 — 149 RSP

150 — 199 RSP

200 — 249 RSP

250 RSP and above

Compressed

4 Levels

6 Levels

8 Levels

9 Levels

10 Levels

Q10 FAQs | 17

MAIN PLAN RANK ADVANCEMENT AND

MAINTENANCE

Q1. WHAT IS THE MAIN PLAN OF THE Q10 COMPENSATION PLAN?A1. Main Plan refers to the Compensation Plan from which an IR can earn commissions/bonuses based on the achievedGroupBusinessVolumeonanyLowerVolumeLeg.IntheMainPlan,IRcanearnRetailProfitand Step Commissions based on his/her Compensation Level.

Q2. CAN AN IR ACCUMULATE RSP TO MEET HIS/HER RANK ADVANCEMENT OR MAINTENANCE FOR ONE (1) YEAR?A2. Yes. However, any extra Personal RSP achieved for one (1) year RSP maintenance requirements cannot be carried forward to the following year.

Q3. HOW CAN A BRONZE STAR IR START EARNING STEP COMMISSIONS IN THE MAIN PLAN?A3. ABronzeStarIRmustbeQualifiedandActivatedtobeeligibletoearnStepCommissionsintheMainPlan.

Q4. WHAT MUST AN IR DO IN ORDER TO ADVANCE TO SILVER STAR RANK IN THE MAIN PLAN?A4. The IR can choose one from the three (3) Options below OPTION1:GetQualifiedandhaveatleastthree(3)QualifiedDirectswith500BVeach. OPTION2:GetQualifiedandhaveatleasttwo(2)QualifiedDirectswith1,000BVeach. OPTION3:Achieve150PersonalRSPandhaveatleasttwo(2)QualifiedDirectswith1,000BVeach.

Q5. WILL THE RETAIL CUSTOMERS BE COUNTED TOWARDS THE REQUIREMENT ON DIRECT REFERRALS FOR THE IR’S RANK ADVANCEMENT TO SILVER STAR RANK?A5. No.OnlydirectlyreferredandregisteredIRswillbecountedtowardstherequirementforQualifiedDirect Referrals for the IR’s rank advancement to Silver Star rank.

Q6. CAN AN IR CARRY FORWARD ANY EXTRA RSP FOR THE RSP REQUIREMENTS TO THE FOLLOWING QUARTERS?A6. Yes, extra RSP can be carried forward to the following Quarters within one (1) year only from purchase date for the IR’s Rank Advancement or Maintenance requirement.

Q7. WHAT MUST AN IR DO IN ORDER TO ADVANCE TO GOLD STAR RANK IN THE MAIN PLAN?A7. An IR must: 1. Sell to a Retail Customer or purchase any QNET product(s) with 150 RSP each quarter. 2. Have a new or existing Direct Referral or Retail Customer achieve a minimum of 500 BV each quarter. 3. Achieve 6,000 Group Business Volume on any lower volume leg each quarter. 4. Earn 1,200 RSP from the Repeat Sales to downlines within the IR’s network or line of referralship per Quarter.

Q8. WILL THE BV FROM RETAIL CUSTOMERS BE COUNTED TOWARDS THE BV REQUIREMENT FROM DIRECT REFERRALS FOR THE IR’S RANK ADVANCEMENT OR MAINTENANCE FOR GOLD STAR RANK AND HIGHER RANK?A8. Yes.

18 | Q10 FAQs

Q9. WHAT MUST AN IR DO IN ORDER TO ADVANCE TO PLATINUM STAR RANK IN THE MAIN PLAN?A9. An IR must: 1. Sell to a Retail Customer or purchase any QNET products with 150 RSP per quarter. 2. Have a new or existing Direct Referral or Retail Customer achieve a minimum of 3,000 BV per quarter. 3. Achieve 120,000 Group Business Volume on any lower volume leg per week for eight (8) weeks within a quarter. 4. Earn 7,500 RSP from minimum two (2) direct line of sponsorship with no more than 4,000 RSP each per Quarter. 5. Have at least 30 downlines within the IR’s line of sponsorship who advance or maintain Gold Star rank or above per Quarter. 6. Achieve the Platinum Star Rank advancement requirements (items 1-5) for two (2) consecutive quarters.

Q10. WHAT MUST AN IR DO IN ORDER TO ADVANCE TO DIAMOND STAR RANK?A10. An IR must: 1. Sell to a Retail Customer or purchase any QNET products with 150 RSP per quarter. 2. Have a new or existing Direct Referral or Retail Customer achieve a minimum of 5,000 BV per quarter. 3. Achieve 180,000 Group Business Volume on any lower volume leg per week for eight (8) weeks within a quarter. 4. Earn 25,000 RSP from a minimum of two (2) directs within line of sponsorship with each having no more than 13,000 RSP per Quarter. 5. Have at least 90 downlines within line of sponsorship who advance or maintain Gold Star rank or above. 6. Achieve the Diamond Star Rank advancement requirements (items 1-5) for two (2) consecutive quarters.

Q11. CAN AN IR CARRY FORWARD THE EXTRA REQUIREMENT ON GBV ON THE LOWER VOLUME LEG TO THE FOLLOWING WEEK FOR ADVANCEMENT OR MAINTENANCE REQUIREMENTS FOR PLATINUM STAR AND DIAMOND STAR RANK?A11. No.

Q12. CAN AN IR CARRY FORWARD THE EXTRA REQUIREMENT ON THE NUMBER OF 30 DOWNLINES’ RANK ADVANCEMENT OR MAINTENANCE TO THE FOLLOWING QUARTER FOR HIS/HER RANK ADVANCEMENT OR MAINTENANCE REQUIREMENTS TO PLATINUM STAR AND DIAMOND STAR RANK?A12. No.

Q13. IF A DEMOTED DOWNLINE RE-ACHIEVES GOLD STAR RANK, WILL THIS IR’S RANK ADVANCEMENT BE COUNTED TOWARDS THE UPLINE’S RANK MAINTENANCE REQUIREMENT?A13. Yes.

Q14. IF AN IR ACHIEVES THE PLATINUM RANK REQUIREMENTS FOR ONE (1) QUARTER BUT FAILS TO ACHIEVE IT IN THE 2ND QUARTER, CAN HE CONTINUE TO ACHIEVE THE REQUIREMENTS IN THE 3RD QUARTER AND UPGRADE TO PLATINUM STAR RANK?A14. No.AnIRmustachievethePlatinumStarrequirementsfortwo(2)consecutivequarters.Therefore,thefirst quarter requirements that the IR achieved in this scenario are forfeited and the IR is required to achieve againthePlatinumStarrequirementsforthefirstquarter.

Q15. IF I’M A GOLD STAR IN THE MAIN PLAN, AM I ALSO GOLD STAR IN THE RSP PLAN?A15. No, the requirements to advance in rank for these plans are different. Please refer to the Rank Advancement sections of these plans to know more how to advance or maintain the respective ranks.

MAIN PLAN RANK ADVANCEMENT AND MAINTENANCE

Q10 FAQs | 19

DEMOTION POLICY

Q1. WHAT IS DEMOTION POLICY?A1. Demotion Policy means that when an IR fails to meet the minimum Maintenance requirements of his/her current rank, he/she will retain his/her current title rank but shall be paid as the lower rank corresponding to the achievement in that particular month or quarter. This policy applies to both Q10 RSP Plan and Main Plan.

Q2. WILL AN IR RETAIN HIS TITLE RANK AS DIAMOND STAR RANK ALTHOUGH HE/SHE ACHIEVED THE RANK MAINTENANCE REQUIREMENTS OF GOLD STAR RANK?A2. Yes, the IR will retain the highest title rank as Diamond Star rank but will be paid as a Gold Star rank at USD 250 per Commission Step.

Q1. WHAT IS THE NEW PROGRAMME BONUS THAT QNET OFFERS TO IRS?A1. QNEToffersnewprogrammebonusesinspecificregionalmarketsthatwillhelpIRstofinancehis/her purchase of a brand new car sporting the QNET’s logo and name that he/she can use in conducting his/her QNET business.

The Car Incentive Programme is used to create visibility of QNET in the urban mobility and to strengthen its position in different markets.

NEW PROGRAMME BONUS

Q1. WHAT ARE THE YEAR-ROUND INCENTIVES?A1. QNET offers year-round incentives periodically, in both World Plan and Local Plans to meet the IRs’ needs and demands for their QNET business.

YEAR-ROUNDINCENTIVES

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