KTK Finances Inc.

The description of work system, being used by the Company «KTK Finances Inc. » with the aim of realization of the authorized purposes and tasks

The Company «KTK Finances Inc. » carries out its economic activity as a consulting company, using principles and technology of multilevel marketing system (MLM).

The management of the company has applied some innovations and modernized a traditional MLM - plan, which has been given the conditional name « integrated marketing ». Its basic elements can be determined as follows:

1. 1. the company, using integrated marketing never realizes its own production or services, i.e. it concludes the exclusive contracts with the industrial enterprises or serving companies with the purpose of promotion of their production or services in the markets, determined by the contract;
2. 2. carries out the activity on promoting as intellectual (financial, insurance and other services) and various material (commodity) products;
3. 3. applies the own unified tariff system « Business - career », the promotion on which directly depends on a personal activity of the independent consultant and his/her opportunities on training and management of the other consultants, involved into MLM - to business through his/her particular participation;
4. 4. in the given system there is no requirement on obligatory irrational, non- competitive purchase of goods or services;
5. 5. the company builds the first line of the independent consultants (both natural and legal persons) extremely horizontal and may have them in unlimited quantity;
6. 6. carries out consulting activity in the countries, where for this purpose there are extremely legal conditions, i.e. receives the necessary authorizations and licenses;
7. 7. fees for all effectively carried out consultations are paid out on a monthly basis without any restrictions;
8. 8. KTK website publishes all amounts of the fees received by both typical and non- typical groups of the independent consultants in half-year sections;
9. 9. the principle of «accord programs" is used, i.e.of those programs, which the company recommends to the consultants to acquire in the advertising and personal purposes at a market cost. If programs are of financial matter (for instance, program of accumulative insurance, investments, trust asset management or other) return of the principal and income accrued on those programs are paid out by the KTK contractors;
10. 10. forms the budget at the expense of a received commission, allocates the expenses under six basic budget articles:

• - personal fee of the independent consultant;
• - system fee (payment for sponsorship and management);
• - expenses for classical advertising;
• - expenses for training and retraining of the independent consultants;
• - expenses on the awards, related to transition of the consultants on various levels of “the universal tariff system «Business - career»;
• - administrative expenses.

"KTK Finances Inc." builds its business relations with the independent consultants on the basis of terms of the COOPERATION AGREEMENT (Contract of cooperation). Section 4 of the given contract, named “Business-career”, describes all conditions of participation and promotion of the independent consultant in accordance with the universal tariff system, used by the company.

Depending on terms of the commission agreement, concluded by KTK and its contractors, fiscal system of the country of presence and other reasons, the internal order of the directors of the company applies various factors. The purpose of these factors is to turn the actual cost, received by the company for an effectively realized consultation (i.e. paid), into so-called "points", necessary to calculate the fee of the consultants according to the unified tariff system.

Example

The man Х, according to the information, received from the consultant Y, has paid the first contribution in amount of 1000 US dollars under the 10-year's investment program to “ORIENT TRUST”.

1. 1. It is necessary to divide 1000 US dollars by the factor 50, we shall receive 20 points.
2. 2. According to the special software it is necessary to determine a place of the independent consultant in “Business - career".
   In particular, it is offered to consider a way of movement of an absolutely new consultant, who has just begun to work as the independent consultant.
   During the 1st month he/she begins the activity from a tariff level 1. His/her tariff at the given level equals 12 US dollars.
3. 3. 20 points we multiply by 12 US dollars we shall receive 240 US dollars. The personal fee accrued to the consultant Y will make 240 US dollars.
4. 4. During the 2nd month the consultant Y has carried out consultations for 5000 US dollars, i.e. we divide 5000 US dollars by the factor 50, we shall receive 100 points. All points in "Business career" are summarized, that enables movements on tariff levels of career. 80 points Х 12 = 960 US dollars.
5. 5. We summarize points received by Y during his/her 1st month, i.e. 20 and add 80 points from the 2nd month = 100 points, that enables Y to proceed to a tariff level 2. The tariff for level 2 is equal to 15 US dollars per point. Thus, from realization of the 2nd month there were more 20 points left, which are necessary to pay out according to the tariff for level 2, i.e. 20 х 15 = 300 US dollars.
6. 6. Total for the 2nd working month Y has received 960 + 300 = 1260 US dollars.
7. 7. Some of the clients Z, D, etc., who earlier bought various programs with assistance of KTK and its independent consultants, have accepted the offer to become consultants in "structural branch" of Y. They begin to work from level 1. The tariff for Level 1 is 12 US dollars per point.
8. 8. Y in the 3rd month has carried out personal consultations equivalent to 40 points, i.e. has earned 40х15=600 US dollars, thus he/she has given a lot of time and attention to the training of his/her subordinate consultants Z, D, etc., who in their turn totally realized consultations for 160 points and have received the fees at the rate of 12 US dollars per point.
9. 9. Difference arising between tariff levels 2 and 1, i.e. 15-12=3 US dollars is multiplied by the quantity of, so-called, “structural points”, received by Z, D, etc. as a result of their activity in a certain period of time, for example, in a calendar month in the amount of, described in item 8, that makes 160 points. 160х3=480 US dollars.
10. 10. In a result we summarize personal consultations, described in item 8, in the amount of 600 US dollars. And structural ones, described in item 9, in the amount of 480 US dollars. 600+480=1080 US dollars, the total fee to be received by Y for his/her activity in the 3rd month.
11. 11. The Technique of calculation of the fee, given in the above Example, is used at all tariff levels of “Business career” and applicable for all the independent consultants of “KTK Finances Inc.”