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QNET COMPENSATION PLAN

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QNET COMPENSATION PLAN

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COMPENSATION

8 WAYS TO EARN

Q1 RETAIL PROFIT Q2 FIRST PURCHASE PROFIT Q3 EARLY PAYOUT Q4 STEP COMMISSION Q5 REPEAT SALES POINTS Q6 RANK ADVANCEMENT BONUS Q7 YEAR-ROUND REW ARDS Q8 OTHER INCENTIVES

Because our universal community of customers and distributors are our most important asset, QNET offers the most dynamic and innovative compensation plan in the global direct selling profession. With 8 ways to earn and up to 50% of the sales paid out in commissions, QNET is a powerfully rewarding, unlimited opportunity! QNET leverages today’s most effective form of distribution relationship marketing. With this person-to-person approach backed by a world-class eCommerce platform, you can share the borderless benefits of the QNET independent business opportunity with others in your neighbourhood, your country, or anywhere around the world… and be rewarded for doing so. Your income is based on your sales and the product sales of those in the organisation you help create. QNET is one of Asia’s leading direct selling companies. We provide borderless opportunities through our eCommerce platform to everyday people in more than 100 countries.

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BUILD A SOLID FOUNDATION FOR YOUR BUSINESS THROUGH SALES OF QNET PRODUCTS & SERVICES.

Q1 RETAIL PROFIT

Selling QNET products directly to your Retail Customers is

the cornerstone of a solid foundation for your business.

When you refer a Retail Customer who purchases products

from the Company, you receive the Retail Profit, which is

the difference between your customer’s Retail Price and

your discounted price as an Independent Representative

(IR) before applicable taxes and shipping & handling

charges, if any.

Q2 FIRST PURCHASE RETAIL PROFIT

As a Referrer, you will receive the First Purchase Retail

Profit from the retail sales/purchases made by your new

personally referred IR. The First Purchase Profit is the

difference between the price of a new IR’s first purchase

(made at Retail Price) and your IR Discounted Price before

applicable taxes and shipping & handling charges, if any.

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THE PATH TO IMMEDIATE CASH IS QNET EARLY PAY. Q3 EARLY PAYOUT The Early Payout applies only to the IR’s Primary Tracking Centre 001, Cycle 1, Step 1 and is paid according to the Commission Schedule. It’s a powerful way t To start earning early

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THE KEY TO SUCCESS IS TO EARN THE POWERFUL STEP COMMISSION... Q4 STEP COMMISSION The Step Commission is another pillar of QNET’s compensation plan. As a new IR, your focus will be on developing a base of customers and on helping your downlines generate volume through sales. The Step Commission is calculated from your placement tree, which has two legs. You will be compensated based on successfully building sales volume within the placement tree. Your upline (or anyone else in the placement tree) may also place IRs in your placement tree. As your group begins to grow, you are entitled to receive weekly commissions based on the volume generated on your lower-volume leg and the allowable commission amounts per Tracking Centre determined by your active rank. Q5 REPEAT SALES POINTS (RSP) From every sale of Repeat Products from the QNET eStore to a Retail Customer or Direct Referral, you and your active Direct Referrer up to four (4) levels will earn the designated points, which can be converted into either cash or Business Volume (BV). Repeat Sales Points are automatically computed and you can easily manage them in your Virtual Office.

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...AND HELP OTHERS TO EARN IT BY EXPANDING YOUR QNET ORGANISATION. Q6 RANK ADVANCEMENT BONUS With Rank Advancement in the Step Commission, you can be rewarded with up to INR 3,316,500 in cash plus eVoucher Points per week. As you grow and advance in rank, the amount paid per step increases, the number of weekly steps allowed increases, and the maximised weekly payout can be achieved. It pays to grow!

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ENJOY THE EXCITEMENT OF YEAR-ROUND REWARDS AND TRAVEL INCENTIVES THAT RECOGNISE YOUR ACHIEVEMENTS. Q7 YEAR-ROUND REWARDS One of the most exciting ways to earn is with special earnings and business incentives for you and your organisation, periodic discounts on best-selling products, and more! Interesting and meaningful promotions spark growth, fuel volume, and capture the imaginations of QNET IRs within the QNET online shopping and business community. Another exciting reward gives you access to some of QNET’s most popular products without spending a cent! The QNET eVoucher is awarded every time you complete your Step Commission Cycle, allowing you to earn and accumulate eVoucher Points (EP) that are your currency for products in the QNET Redemption eStore. Here, your EP can be used to claim big-ticket items! There’s always something fresh, new and fun with Year-Round Rewards. Q8 OTHER INCENTIVES Life is to be enjoyed, and important milestones deserve to be recognised. To help you savour the journey, the rich experience of travel and cash are the crown jewels in the QNET compensation plan. Enjoy some of the world’s most exciting and exotic destinations with the QNET Annual Reward Trips and cash incentives. Either take some well-deserved time out, embark on an adventure or use your trips as a business opportunity to grow your borderless organisation.

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GETTING STARTED IS SIMPLE. ENROL, QUALIFY, ACTIVATE, AND MAXIMISE BY HELPING OTHERS TO DO THE SAME IN YOUR QNET ORGANISATION. ENROL Enrol online through www.qnetindia.in, through your Direct Referrer’s own Personal Website (QNET Life Site*) or through the QNET Mobile 5.0, a mobile app where you can enrol and do your first purchase all in six simple steps. Simply pay for your one-year IRship Package, which includes your online Business Planner and Product Portfolio and an array of multimedia presentations, videos and brochures. You also receive annual access to your own proprietary Virtual Office where you can organise, manage, and monitor your business; access to the QNET eStore for your product sales and purchases; and various new and exciting business, marketing and eCommerce tools to help you boost, promote, grow, utilise, capitalise and understand your QNET business! Once you enrol, you will be granted three (3) Tracking Centres (TCs). These business centres are the foundation of your placement tree. QUALIFY Qualify at least one (1) of your Tracking Centres with 500 qualifying BV by selling products to a Retail Customer or making a Personal Purchase ACTIVATE To activate means that a Qualified IR has to achieve a minimum 500 BV on each side of any of his/her Tracking Centres through Personal Sponsorship. There are three (3) ways to activate:

• Retail Sales – All products are purchased by the Retail Customer but corresponding BV is allocated to Referrer’s Tracking Centres.

• Combination of Sales and Purchases – The combination of BV from

Directly Referred Retail Customer’s Purchase and Directly Referred

Qualified IR’s Purchase allocated to your Tracking Centres.

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• Personal Sponsorship – Place at least one (1) Qualified Direct

Referral under each side of any of your Tracking Centres.

*Available in the QNET eStore, QNET Life Site is a powerful, personal online web tool to help you harness the potential of online marketing with approved QNET content.

MAXIMISE Move to action as you build and lead an organisation of people who share the same dreams and goals as you. By progressing through the QNET Star Ranks, you can maximise your earnings and enjoy a richer and fuller lifestyle as a member of the growing QNET universal community!

TERMINOLOGIES INDEPENDENT REPRESENTATIVE (IR) A person who has enrolled to build a business organisation by selling products and referring others. ENROL To register as an IR in the QNET business with a one-year IRship Package. QUALIFIED IR An IR who has at least one (1) Tracking Centre (TC) with the minimum qualifying 500 BV. ACTIVATED IR A Qualified IR who has achieved and allocated a minimum of 500 Qualifying BV on each side of any of his/her Tracking Centres (TCs) through Personal Sponsorship. ACTIVE IR Any IR who achieves a minimum of 120 BV per quarter from his/her retail sale or purchases of repeat products for personal consumption from the QNET eStore REFERRER An IR who refers Retail Customers or other prospects by helping them to become IRs of QNET. RETAIL CUSTOMER Someone who purchases products from QNET but does not enrol to be an IR.

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BUSINESS VOLUME (BV) The point value of a product used to qualify Tracking Centres (TCs) and calculate Step Commissions. GROUP REPEAT BUSINESS VOLUME (GRBV) Business Volume (BV) earned from the repeat product sales made by your downlines within your network. QUALIFY PRODUCTS The goods and services that are offered for sale to Retail Customers and IRs from the QNET eStore. IRs earn a certain amount of BV that is used for the qualification of his/her TC, upon purchase of the Qualify Products. REPEAT PRODUCTS The goods and services that are offered for sale to Retail Customers and IRs from the QNET estore on a recurrent basis. IRs earn a certain amount of BV and RSP upon purchase of repeat products. REPEAT SALES POINTS (RSP) Points earned by IRs from retail sales and purchases of repeat products. Upon purchase of repeat products, the IR and his/her direct referrers up to five (5) levels, including his/her own, will receive RSP. These are convertible into cash or Business Volume (BV). eVOUCHER POINTS (EP) Points earned at every Step 6 of any given Commission Cycle, redeemable for products in the QNET Redemption eStore

BONUS SUMMARY BONUS WHAT YOU RECEIVE WHAT IS REQUIRED

Q1 RETAIL PROFIT

• Sell QNET products to your friends and neighbours at Retail Price and keep the difference

• Become a QNET Independent Representative (IR)

Q2 FIRST PURCHASE

PROFIT

Receive the profit on the first order at Retail Price by a new personally referred IR.

Personally refer a new IR who makes their initial purchase at Retail Price.

Q3 EARLY PAYOUT

Receive up to INR 5,500 according to the Commission Schedule

• Become a QNET IR • Qualify and Activate your Tracking Centres (TCs) • Apply to only Cycle 1, Step 1

Q4 STEP COMMISSION

• Receive weekly commissions based on the volume generated on your

• Qualify and Activate all of your

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lower-volume leg on the allowable commission amounts per Tracking Centre determined by your active rank

Tracking Centres (TCs)

Q5 REPEAT

SALES POINTS

• From every sale of a Repeat product from the QNET eStore to a Retail Customer or Direct Referral, the IR and the active Direct Referrer up to four (4) levels will earn the designated Repeat Sales Points (RSP), which can be converted into either cash or Business Volume (BV)

• Have Retail Customers and Direct Referrals who purchase Repeat products from the QNET eStore • Manage your Repeat Sales Points (RSP) through your Virtual Office

Q6 RANK

ADVANCEMENT BONUS

• Maximise your commissions up to INR 3,316,500 per week through growth in volume and Direct Referrals • Develop leadership skills

• As you advance in rank, the amount paid per step increases, the number of weekly steps allowed increases, and the maximised weekly pay out can be achieved

Q7 YEAR-ROUND

REWARDS

• Earn rewards, points and incentives tied to regular and ongoing product promotions and cash incentives

• Learn and achieve the requirements for promotions/incentives

Q8 INCENTIVES

• Earn travel and cash incentives with recognitions associated with Rank Advancements

• Build and grow your network to result in Rank Advancements and leadership development

REWARDS AND RECOGNITION STARS RANKS

TITLE ENTITLEMENTS BRONZE STAR

• Bronze Star eBadge • Rank Recognition eCertificate

SILVER STAR

• Silver Star eBadge • Rank Recognition eCertificate

GOLD STAR

• Gold Star eBadge • Gold Star Pin* • Rank Recognition eCertificate

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• Regional Events Recognition

PLATINUM STAR

• Platinum Star eBadge • Platinum Star Pin • Rank Recognition eCertificate

V-Con Stage Recognition

12 months free QNET Life Site Subscription • Personal phone call from QNET Managing Director • Featured page in QNET Recognition ePublication • Personal letter of Congratulations • Platinum Star Destination Travel for two*

DIAMOND STAR

• Diamond Star eBadge • Diamond Star Pin • Rank Recognition eCertificate

V-Con Stage Recognition

12 months free QNET Life Site Subscription • Personal phone call from QNET Executive Chairperson and QNET Managing Director • Personalised Diamond Star documentary in QNET Recognition ePublication • Personal letter of Congratulations • Diamond Star all-expenses paid VIP Destination Award Travel for two*

*Terms & Conditions apply.

REWARDS AND RECOGNITION ANNUAL REWARD TRIPS* PLATINUM STAR FLY-IN As a new QNET Platinum Star IR, you qualify for a destination trip for two including free airfare and hotel accommodations. DIAMOND STAR AWARD TRAVEL Qualifying QNET Diamond Star IRs will enjoy an all-expense-paid trip for two to exciting destinations announced annually. *Terms and conditions apply.

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CHOOSE YOUR PRODUCTS TO MATCH YOUR LIFESTYLE BUSINESS CUSTOMERS MARKET NEEDS WANTS MOOD

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RANK QUALIFICATIONS

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1Personal Business

Volume, BV

BV achieved from the purchases/retail sales of

repeat productsN/A 40 **** 120* 120* 120*

Number of new Qualified direct Referrals from

14 April 2012 onwards. Choose one (1)

method from the three (3) options given.

This is a one time requirement to be achieved

to advance to Silver Star Rank

3 Steps earned 

Number of Steps earned from 14 April 2012

onwards.

This is a one time requirement to be achieved

to advance to Gold Star Rank

N/A N/A

4Repeat Sales Points

(RSP) 

Points earned from Repeat Sales or

purchases made by the IR and his/her 4-level

Downlines under his/her line of Referralship

which are convertible into cash or BV.

N/A N/A 80 * 240 * 480 *

5BV from new Direct

Referrals, BV

BV achieved from the purchases of the IR's

new direct Referrals (IR and Retail

Customers) from QNET E-store

N/A N/A 500 * 1000 * 1500 *

BV achieved/earned from the Repeat Sales

made by Downlines under IR's lines of

Referralship.

For Gold Star Rank: 1,000 GRBV from the

Repeat Sales within the IR's network.

For Platinum Star Rank: 15,000 GRBV with

no more than 7,500 GRBV coming from each

direct line of Referralship. This means that

15,000 GRBV must come from at least 2 or

more direct Referral lines

For Diamond Star Rank: 50,000 GRBV with

no more than 12,500 GRBV coming from each

direct line of Referralship. This means that

50,000 GRBV must come from at least 4 or

more direct Referral lines

7

No. of Indirect Referrals

with New Rank

Advancement *

No. of indirect Referrals who advanced from

Silver Star to Gold Star Rank and upwardsN/A N/A N/A 30 * 90 *

Group BV in any lower volume leg in the Binary

Genealogy

For Platinum Star Rank : Achieve 120,000

BVs per week on Lower Volume Leg for 8

weeks within a Quarter.

For Diamond Star Rank: Achieve 180,000

BVs per week on Lower Volume Leg for 8

weeks within a Quarter

To become  Platinum Star -  At Gold Star

rank, achieve Platinum Star  requirements for

three (3) consecutive Quarters and at the

beginning of the fourth (4th) Quarter, the Pay

rank and Title rank will become Platinum Star.

To become Diamond Star  -  At Platinum

Star rank, achieve Diamond Star requirements

for five (5) consecutive Quarters and at the

beginning of the sixth (6th) Quarter, the Pay

rank and Title rank will become Diamond Star

Note * Quarterly Requirements

** Option 1 - One-time requirement to advance to Silver Star rank and upwards

*** Option 2 - One-time requirement to advance to Silver Star rank and upwards

**** Option 3 - One-time requirement to advance to Silver Star rank and upwards

**** 40 BV one-time requirement to advance to Silver Star rank at Option 3

***** One-time requirement to advance to Gold Star rank and upwards

2

QUARTERLY RANK ADVANCEMENT REQUIREMENTS *

No CRITERIA DEFINITION/REMARKSBRONZE

STAR

SILVER

STAR

GOLD

STAR

PLATINUM

STAR

DIAMOND

STAR

N/A120,000/week for

8 weeks *

180,000/week

for 8 weeks*

2 *****

6Group Repeat Business

Volume , GRBVN/A N/A 1,000 *

Achieve Diamond

Star requirements

and maintain the

same requirements

for another four (4)

Quarters

Option 1: Be Qualified and Activated by 2 Direct Referrals + 1 Qualified Direct

referral with at least 500 BV each **

Option 2: Refer three (3) Qualified Direct Referrals with at least 500 BV each ***

Option 3: Refer two (2) Qualified Direct Referrals with at least 1,000 BV each ****

Number of Qualified

Direct Referrals N/A

9Pay-out Rank

MaintenanceN/A N/A N/A

Achieve Platinum

Star requirements

and maintain the

same requirements

for another two (2)

Quarters

15,000* 50,000*

8 Lower Volume Leg, BV N/A N/A

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Earnings and Income Disclaimer We make every effort to ensure that we accurately represent our products and services and the potential for

income. Earning and/or income statements made by our Company and/or Independent Representatives are

estimates of what you can possibly earn. There is no guarantee that you will make these levels of income and

you accept the risk that the earnings and income statements differ from individual to individual. The examples are

not to be interpreted as any guarantee, promise, representation and/or assurance. We do not purport our

business and/or us as being a 'get rich scheme'.

As with any business, your results may vary, and will be based on your individual capacity, business experience,

expertise, and level of desire. There are no guarantees, promises, representations and/or assurances concerning

the level of success you may experience. Your level of success in attaining the results claimed depends on the

time you devote to the business, the ideas and techniques mentioned, your finances, knowledge and various

skills, since such skills and factors differ according to individuals.

Testimonials and examples used are exceptional results, which do not, or may not, apply to the average person,

and are not intended to guarantee, promise, represent and/or assure that anyone will achieve the same or similar

results. We reiterate that each individual’s success depends on his or her background, dedication, desire and

motivation.

There is no assurance that examples of past earnings can be duplicated in the future. We cannot guarantee your

future results and/or success. There are some unknown risks in business that we cannot foresee which can

reduce results. We are not responsible for your actions. Any claims made of actual earnings or examples of

actual results can be verified upon request.

The use of our information, products and/or services should be based on your own due diligence, which you

undertake and confirm that you have carried out to your entire satisfaction. You agree that our Company is not

liable for any success or failure of your business, acts and/or conduct that is directly or indirectly related to the

business and/or the purchase and use of our information, products and/or services.