Chapter 8: Management Performance Compensation Plan (MPCP)

 

SEC. 1         Organizational Structure

Each Business Development Center (BDC) has two sides. A side is a sales and distribution organization or network structure in the Market America UnFranchise® Business Development System.

(A)     Business Development Center Defined: A Business Development Center is an operational establishment set up within Market America’s computerized organization tracking system. Each organization is based upon the assignment of the Independent Distributor’s identification number and the BDC’s three-digit extension number (e.g.; 001, 002, 003, 010, etc.).         

(B)     Additional Business Development Centers: Additional BDCs are established either on the left or right side of a previously established BDC.

SEC. 2          Initial Participation Requirements    

To participate in Market America’s MPCP an individual (with the assistance of his/her sponsor) must complete and submit the Independent Distributor Application and Agreement. The Application and Agreement may be submitted by completing the sign-up process online, thereby establishing one’s BDC(s).

(A)    Sales Representative: Individuals who fail to submit the subscription fee enter Market America as Sales Representatives and cannot participate in the MPCP for the purposes of earning commissions and management bonuses. Sales Representatives may begin participating in the MPCP at a later time, if they submit the subscription fee on an order or with a new application (please indicate the appropriate box under “Entry Classification” on the application).

(B)     Distributor: Individuals must select Distributor on the “Entry Classification” and submit the subscription fee in order to participate in the MPCP and earn commissions and management bonuses.

SEC. 3                A Person May Be Involved in One Distributorship Only

A person may be involved in one Market America distributorship only. If a person is already involved in a distributorship as an owner, officer, director, shareholder, partner, member, manager, beneficiary, or trustee, or is the spouse of a Distributor, or if a person otherwise plays a role in the operation of a distributorship, then that person may not be involved in any such capacity for another distributorship regardless of whether his or her name appears in the distributorship’s official documents or is associated with the distributorship in any formal way. Market America policy prohibits the use of an “Alter Ego” in order to circumvent this restriction, including without limitation, Alter Ego’s created using any of the following: (A) trade names, (B) assumed names, (C) federal identification numbers, (D) fraudulent Social Security or Social Insurance numbers, (E) agreements to operate a distributorship, (F) a spouse or significant other, (G) family members, or (H) business or non-profit entities.

SEC. 4                Placement of Business Development Centers

Business Development Centers of new Distributors are placed at the discretion of the sponsoring Distributor. Existing Distributors under which these new BDCs are being placed should be made knowledgeable of their placement within their organization. Placement of BDCs of new Distributors is specified on the mailed Independent Distributor Application and Agreement or during the online sign-up process by the new Distributor’s sponsor.

(A)    New Business Development Centers: New BDCs may be established only in available locations, not previously occupied or linked. All Sales Representatives and Distributors start with 3 BDCs when they establish their UnFranchise Business. Independent Distributors will also start with 1 IRC (please see Section 17 of the Chapter).  

(B)     Incorrectly Placed: Improper placement (attempting to place new Distributors in positions already occupied in the downline), incomplete placement information, or failure to designate placement information on the Independent Distributor Application and Agreement for newly sponsored Distributors will result in “unlinked” BDC(s). Any BDC(s) linked to an “unlinked” BDC will also be “unlinked.”

(1)     Unlinked BDCs may be identified by searching the “L” column of the Distributor Network Report on the UnFranchise® Management System. If there isn’t an “L” or “R” in the Distributor’s “L” column for BDC-001, then the Distributor’s BDCs are unlinked.

(2)    Corrected linkage of BDCs should be reported to Data Processing using the Placement or Linkage Correction Form via fax or mail as soon as possible. Only the sponsor or the unlinked Distributor may sign the linkage correction form.

SEC. 5                Initial Qualification Requirement

Qualifying a BDC will permit accrual of Group Business Volume generated by Distributors and Sales Representatives in the respective BDC’s downline. Accrued Group Business Volume will be applied towards earning commissions and management bonuses for the qualified BDC.

(A)     Personal Business Volume Created: Both Distributors and Sales Representatives create Personal Business Volume by generating sales of Market America products to the end consumer and/or personal consumption.

(B)     Qualification: A Distributor’s BDCs shall be considered “Qualified” in Market America’s MPCP upon meeting three criteria: 1) accumulating 200 Personal Business Volume credits for product orders assigned to that respective BDC, 2) being linked properly; 3) paying the subscription fee.

(1)     Personal Business Volume created by Sales Representatives will count towards qualifying their BDC(s) should Sales Representatives elect to change their status to Distributor by submitting the subscription fee at a later date. All Personal Business Volume created by Sales Representatives will be recognized as Group Business Volume for all qualified Distributors in the creating Sales Representative’s upline.

(2)     A Sales Representative’s BDC(s) will not be considered qualified, even if the BDC has accumulated 200 Personal Business Volume, until he/she elects to change his/her status to Distributor by submitting the subscription fee.

(3)    Personal Business Volume created by Distributors will count towards qualifying their BDC(s) as assigned on the product order form.

(4)     The Personal Business Volume created by Distributors will be recognized as Group Business Volume for all qualified Distributors in the creating Distributor’s upline.

(C)     Qualification Date (Q-date): At the time a Distributor’s initial BDC becomes qualified, the Distributor will be assigned a Qualification Date (Q-date). The Q-date is the most critical element in exercising the Distributor’s option to accrue Group Business Volume from month to month through the entire MPCP compensation cycle. 

(1)     A Distributor’s Q-date is the Friday of the week in which the Distributor’s initial BDC accumulated 200 Personal Business Volume credit for product orders assigned to that Center, if the BDC is linked properly and the Distributor has paid the subscription fee.

(2)    A Sales Representative who has accumulated 200 Personal Business Volume in a BDC and has elected to change his/her status to Distributor will receive a Q-date of the Friday of the week in which the subscription fee is received by Market America and entered into the corporate database, if the Sales Representative’s BDC is linked properly.

(3)     A Distributor’s Q-date never changes, unless the Distributor does not submit the Annual Renewal fee. See Annual Renewal.

(4)     A Distributor’s Q-date may be obtained from Market America’s Distributor Services Department and the UnFranchise® Management System. It is recommended that all sources be checked for verification and validation. The Q-date will not show up in the computer database until the third week after the Friday of the week in which the Distributor met all three criteria for qualification and is not considered established until this time.

(D)    Q-date Periods Defined:

(1)    Weekly Commission Cycle: All commission weekly pay cycles begin Saturday and end on Friday. If Market America’s office is closed due to a holiday, the end of the commission weekly pay cycle for that week will be the last business day Market America is open that week.

(2)   Monthly Q-date Period:

(a)    If the original Q-date falls exactly on a Friday in a given month, then that monthly Q-date Period ends on that Friday. For example, if the original Q-date is January 10, 2003, then the monthly Q-date for October of 2003 will be October 10, 2003.

(b)    If the original Q-date falls any day other than Friday in a given month, then that monthly Q-date Period ends on the Friday immediately following that day. For example, if the original Q-date is January 10, 2003, then the monthly Q-date for June of 2003 will be June 13, 2003.

(c)    If the original Q-date falls on the 29, 30, or 31 day of the month and the current month does not contain those dates (e.g., February, April, June, September or November), then the end of that monthly Q-date Period is determined by the last day of that month. In this case, if the last day of the month falls exactly on a Friday in a given month, then that monthly Q-date Period ends on that Friday. For example, if the original Q-date is June 28, 2002, then the monthly Q-date for February of 2003 will be February 28, 2003. However, in this case, if the last day of the month falls any day other than Friday in a given month, then that monthly Q-date Period ends on the Friday immediately following the last day of the month (e.g. if the original Q-date is June 28, 2002, the monthly Q-date for September of 2003 will be October 03, 2003.)

(3)     Quarter (Three-Q-date Period or Three-Start-Date Period): Market America quarterly periods are based on Distributors’ initial Q-dates or Sales Representatives’ Start Dates. A quarter may also be referred to as a Three-Q-date Period, or a Three-Start-Date Period, because the Market America quarter is comprised of three consecutive monthly Q-date periods, or in the case of a Sales Representative or an unqualified Distributor, three consecutive monthly periods based on the Start Date. For example, if the initial Q-date is January 10, 2003, then the first quarter (or Three-Q-date Period) ends April 11, 2003. The second quarter would begin April 12, 2003, and end July 11, 2003.

(E)     Unlinked Business Development Center: All assigned Business Volume to unlinked BDCs shall also be unlinked. The “qualifying” volume for a BDC will not result in this Center receiving a Q-date until linkage has been corrected, because Distributors cannot accrue any Group Business Volume until they have met all three criteria for “qualification.” Upon proper linkage of the unlinked Distributor, unlinked Business Volume shall be credited for the date of the original order; however, the Business Volume cannot be credited as accrued Group Business Volume for qualified upline Distributors until linkage has been properly corrected. Once the placement is corrected, Group Business Volume will begin to flow and accrue; however, some Distributors upline may no longer be able to count the relinked Business Volume for commissions, if they have earned a commission for reaching the 5000/5000 GBV compensation criteria in the meantime.

(1)    If the unlinked Distributor (Distributor A) is unlinked because of an improper linkage situation only, then upon being linked correctly Distributor A will receive an initial Q-date (assuming all requirements for being qualified are met) of the Friday of the week for which Market America is paying commissions at the time of proper linkage (two Fridays previous). Note: This does not apply to the scenario in which the Distributor to whom Distributor A is linked (Distributor B) did not exist in Market America’s computer database until a later commission week than Distributor A (see below).

(2)    If the unlinked Distributor (Distributor A) is unlinked temporarily because the Distributor to whom Distributor A was intended to be linked (Distributor B) did not exist in Market America’s database at the time Distributor A was entered into the database, and Distributor B is entered into the computer database in a subsequent commission week than Distributor A, then Distributor A will receive an initial Q-date (assuming all requirements for being qualified are met) of the Friday of the week in which Distributor B was entered into the computer database (assuming Distributor B is linked properly).

SEC. 6            Minimum Activity Requirements

The following Minimum Activity Requirements shall apply for the respective status and/or Pin Levels to be considered “active” in the conduct of business. “Activity” shall be defined as any sale and/or order of products/services having BV/IBV and an associated retail profit or ongoing BV/IBV from an initial sale having a retail profit where the respective Distributor ID number is the paying ID number or the purchasing customer is a registered PC of the respective Distributor/Sales Representative.

Example: the BV/IBV created could be from a Distributor/Sales Representative order in their UnFranchise® Business Account; an order from a PC at any of the Distributor’s shopping websites which are provided by Market America; or be part of a “package” sale where the initial part of the sale has BV/IBV value and retail profit and the subsequent associated ongoing monthly purchase/payment part of the package has BV/IBV but no retail profit.

Distributors/Sales Representatives will be considered “inactive” and have accumulated Personal Business Volume (PBV) assigned to any of their personal BDCs purged (erased to 0 and removed from upline qualified Distributor accrued Group Business Volume (GBV) totals) and any accrued GBV flushed (erased to 0) if all requirements listed below are not satisfied.

(A)   Sales Representatives/Non-Qualified Distributors (Individuals electing not to earn commissions/bonuses through the MPCP or have not met minimum requirements to earn commissions).

(1)   Sales Activity: Must have product orders totaling a minimum of 150 BV in activity assigned to any of their personal BDCs (their Distributor ID and applicable extension number) each quarter (Three-Start-Date Period) based on their Start Date.

(2)   Sales Documentation: A Distributor Sales Report (Form 1000) must be submitted to Market America each quarter, accompanied by a minimum of two retail sales receipts evidencing sales during the quarter totaling a minimum of $200.00. Each Sales Representative must personally make the retail sales documented on the Form 1000 to their registered Preferred Customer(s). 

(a)   No more than $60.00 of products personally used/consumed by the respective Sales Representative’s household may be used as part of the $200.00 sales total. NOTE: Where volume flows pursuant to the MPCP, the requisite minimum sales documentation establishing sales to end consumers who are not involved in the Market America MPCP is of vital importance. The Sales Representative is ultimately responsible to ensure the validity of the sales documentation.

(b)   For Sales Representatives, the Form 1000 is intended to automatically populate with qualifying receipts and automatically submit to Market America to meet this requirement for the BDC -001 only, from sales information recorded by the Sales Representative when a manual receipt is created. All manually entered sales receipts must be personally completed and submitted by the Sales Representative.

(c)   Submitted receipts must contain the date of sale, the customer’s first and last name, and either their physical address (address of residence) or complete phone number for acceptance (addresses must include a valid zip/postal code, and phone numbers must include the area code). Receipts not containing complete and accurate information will be considered invalid.

(d)   Only sales receipts from products sold in the Sales Representative’s “Home Region” are considered valid receipts.

(e)   Market America will periodically conduct a random audit of retail receipts for authenticity. Invalid receipts will result in corrective actions being initiated and may disqualify the Form 1000.

(3)   Contractual Relationship: A Sales Representative/Non-Qualified Distributor must complete and submit an Annual Renewal Form (Form 1052) in accordance with the renewal procedure. See Annual Renewal.

(a)   Failure to submit the Annual Renewal Form will result in PBV being purged (erased to 0), their access to the UnFranchise® Business Account (“Back Office”) denied, and continued authorization to sell and represent ma Branded products terminated.

(b)   For Non-Qualified Distributors who submit the Annual Renewal Form without the renewal fee, their Distributor status will be changed to Sales Representative. Their accumulated PBV will not be purged (erased to 0).

(B)   Qualified Distributors (Individuals electing to earn commissions/bonuses through the MPCP).

(1)   Sales Activity: Must have product orders totaling a minimum of 150 BV in activity assigned to any of their personal BDCs (their Distributor ID and applicable extension number) each quarter (Three-Q-Date Period) based on their Q-Date.

(2)   Sales Documentation: A Distributor Sales Report (Form 1000) must be submitted to Market America each quarter, accompanied by a minimum of two retail sales receipts evidencing sales during the quarter totaling a minimum of $200.00. Each Distributor must personally make the retail sales documented on the Form 1000, to their registered Preferred Customer(s). Sales to Preferred Customers who are also Distributors or Sales Representatives do not qualify for this purpose.

(a)   No more than $60.00 of products personally used/consumed by the Distributor’s household may be used as part of the $200.00 sales total. A Distributor’s purchase under their Personal Preferred Customer ID# is considered personal consumption. NOTE: The requisite minimum sales documentation establishing sales to end consumers who are not involved in the Market America MPCP is of vital importance. The Distributor is ultimately responsible to ensure the validity of the sales documentation.

(b)   For UFMS subscribers, the Form 1000 is intended to automatically populate with qualifying receipts and automatically submit to Market America to meet this requirement for the BDC -001, from sales where the paying ID is a Preferred Customer.  Sales receipts may also be manually entered and submitted to the Form 1000.  When sales receipts and/or the Form 1000 is manually submitted, all sales documentation must be personally completed and submitted by the Distributor.

(c)   A Form 1000 with accompanying receipts must be submitted one time only for each other BDC (i.e., 002, 003, 004, 301, etc.) before those BDCs are eligible to earn commissions, as long as the Distributor never purges.  The Form 1000 will not auto-populate nor auto-submit to meet this requirement but must be prepared and submitted on-line or in paper form.

(d)   Submitted receipts must contain the date of sale, the customer’s first and last name, and either their physical address (address of residence) or complete phone number for acceptance (addresses must include a valid zip/postal code, and phone numbers must include the area code). Receipts not containing complete and accurate information will be considered invalid.

(e)   Only sales receipts from products sold in the Distributor’s “Home Region” or through GLOBAL.SHOP.COM are considered valid receipts.

(f)   Market America will periodically conduct a random audit of retail receipts for authenticity. Invalid receipts will result in corrective actions being initiated and may disqualify the Form 1000.

(3)   Contractual Relationship: A Distributor must complete and submit an Annual Renewal Form (Form 1052) and pay a renewal fee in accordance with the renewal procedure. See Annual Renewal.

(a)   Failure to submit the Annual Renewal Form will result in a Distributor’s initial Q-Date being erased from the computer database, accrued GBV being flushed (erased to 0), accumulated PBV being purged (erased to 0), their access to the UnFranchise® Business Account (“Back Office”) denied, and continued authorization to sell and represent ma Branded products terminated.

(b)   Failure to submit the renewal fee with the Annual Renewal Form will result in a Distributor’s status being changed to Sales Representative, their Q-Date being erased from the computer database, and accrued GBV being flushed (erased to 0). Their accumulated PBV will not be purged (erased to 0).

(4)   Requalification:

(a)   If a qualified BDC purges for any reason, any BDC on which the Distributor wishes to earn future commissions must be requalified with a 200 PBV product order or accumulating 200 PBV in the respective BDC. Any individual BDC will not begin accruing Group Business Volume until it has been requalified. The original Q-date received shall stay in effect, except for purges due to non-renewal. See Annual Renewal.

(b)   If a Distributor purges for any reason, valid Form 1000(s) must be resubmitted for each BDC in order to be eligible to earn commissions for that respective BDC. Only the BDC -001 can requalify through an auto-populated Form 1000.

SEC. 7            270 Day Rule and Sales Activity

Distributors/Sales Representatives who have been inactive for 270 calendar days or more from the date of their last sales activity CANNOT retain their original/previous BDC position/placement within the organization. Submission of an Annual Renewal Form or a Late Renewal Application by itself, with or without a subscription fee, does not constitute “sales activity.” Sales activity shall be defined as any sale and/or order of products/services having BV/IBV and an associated retail profit or ongoing BV/IBV from an initial sale having a retail profit where the respective Distributor ID number is the paying ID number or the purchasing customer is a registered PC of the respective Distributor/Sales Representative.

Example: the BV/IBV created could be from a Distributor/Sales Representative order in their UnFranchise® Business Account, an order from a PC on GLOBAL.SHOP.COM, or be part of a “package” sale where the initial part of the sale has BV/IBV value and retail profit; however the subsequent associated ongoing monthly purchase/payment part of the package has BV/IBV but no retail profit.

(A)     Distributors/Sales Representatives Inactive ≥ 270 Days but <1,000 Days Reapplying Same Line: Distributors/Sales Representatives who have been inactive for 270 days, but less than 1,000 days (i.e., 270 days plus an additional two years), who want to become a Distributor again in the same line of sponsorship as their previous distributorship, may go through the online Sign-Up Wizard and submit an Independent Distributor Application and Agreement (IDA&A) for placement at the bottom of the genealogy, or submit a standard hardcopy paper IDA&A. Such IDA&A must be in the same name and under the same tax identification number as their previous distributorship. The same line of sponsorship means any placement in the genealogy under their previous BDC’s.

(B)     Distributors/Sales Representatives Inactive ≥ 270 Days but <1,000 Days Reapplying Different Line or Different Name/ID#: 

(1)     All Distributors/Sales Representatives who have been inactive for 270 days, but less than 1,000 days, and who want to become a Distributor again under a different line of sponsorship, or under a different name or a different tax identification number, must submit a notarized letter, signed by the reapplying Distributor, explaining why they want to change their line of sponsorship or name/ID#, to the attention of the Field Compliance Department, by email to FieldCompliance@MarketAmerica.com, or by fax to 336.605.0041.

(2)     In the sole discretion of Market America (or its subsidiaries/affiliated family of international companies) an application of a former Distributor/Sales Representative who has been inactive for the 270 days, but less than 1,000 days may be approved to be in a different line of sponsorship. This may be done if the following is found (this list is not all inclusive and inclusion on the list does not guaranty that a change in line of sponsorship will be approved):

(a)     The sponsor/upline didn’t fulfill their management responsibilities as defined in the Career Manual;

(b)     A legitimate grievance is filed against the sponsor/upline for activity that undermined the reapplying Distributor’s business;

(c)     The company determines that there are extenuating circumstances that justify placement in a new line of sponsorship; or

(d)     It is determined that the Save A Distributor (SAD) program was utilized and there were no satisfactory attempts of support made by the upline.

(C)     Distributors/Sales Representatives Inactive ≥ 1,000 days: Distributors/Sales Representatives who have been inactive for 1,000 days or more may go through the online Sign-Up Wizard or submit a standard hardcopy paper IDA&A for placement in their previous line of sponsorship, or in any new line of sponsorship, as long as the Distributor/Sales Representative has complied with all other policies and procedures regarding the integrity of lines of sponsorship and non-manipulation of the Management Performance Compensation Plan (MPCP).

(D)     Unethical Activity: If the company determines that a Distributor has acted unethically by reapplying under a different line of sponsorship, the Distributor (“Unauthorized Distributor”) will be subject to having their IDA&A terminated immediately. The organization receiving credit from this unethical reapplication will have all BV resulting from this activity removed, and all commissions generated from this BV will be reversed. See Commission Reversal. Distributors placed under the Unauthorized Distributor will be moved to the original line of sponsorship OR to an appropriate placement determined at the sole discretion of the company. BDCs unrelated to the Unauthorized Distributor will remain in their current positions. If it is found that any other active Distributor participated in or encouraged this unethical activity, the Corrective Action Procedure will be initiated with respect to that Distributor. See Corrective Action Policy.

(E)     Circumvention of Policy: If it is found that a Distributor has circumvented this policy (or any other policy) by using a spouse/significant other, family member, a different ID#, a business entity, or other third party to establish an UnFranchise® Business in another line of sponsorship, or by arranging for someone to establish an UnFranchise® Business to be used as a passive “alter ego”, the Distributor will be subject to immediate termination of their IDA&A, and all BV resulting from this activity will be removed and commissions reversed. Passive shall be defined as not engaging in the customary, and in some cases required, activities of legitimate Distributors including retailing, meeting sales requirements, sponsoring, attending meetings, attending training classes, completing certification requirements, etc. In addition, if a Distributor pays, with their own credit card or other form of payment, to meet the sales requirements of an alter ego, and thus keeps the alter ego active and/or qualified, this is also considered passive. There will be zero tolerance for violations of this section.   

(F)     New Q-Date: Upon initially qualifying a BDC in the new placement, the Distributor will receive a new Q-date and first-quarter grace period, because s/he is effectively a new Distributor in terms of the MPCP.

(G)    Monthly Service Charge: Distributors inactive for 270 days who have a credit on their Market America account will be assessed a monthly service charge, either until the Distributor establishes a new distributorship at the bottom of a genealogy line (or as otherwise permitted by this policy) or the balance of the credit account is zero, whichever comes first. This service charge will apply to any credit account the Distributor has with Market America: U.S., Canada, Australia, Taiwan, Hong Kong, United Kingdom, and Mexico. The monthly service charge for each country-specific account is as follows: US$20.00 for accounts in the U.S., CAN$28.00 for accounts in Canada, AU$30.00 for accounts in Australia, NT$640.00 for accounts in Taiwan, HK$150.00 for accounts in Hong Kong, £12.75 in the United Kingdom and MXN$268.67 for Mexico.

SEC. 8                Annual Renewal

Each term of the Independent Distributor Application and Agreement (IDA&A) ends on the last business day of a Distributor/Sales Representative’s Start Month in the following year. The “Start Month” is the month in which a Distributor or Sales Representative’s Start Date falls.   In order to extend the term of the IDA&A, Distributors and Sales Representatives must renew on an annual basis. Proper renewal is effective when the below requirements are followed, so long as not rejected by Market America within 15 days of the last business day of the Distributor or Sales Representative’s Start Month.  

(A)     Sales Representatives: To renew the IDA&A, the Sales Representative must timely submit to Market America’s Data Processing Department a paper Annual Renewal Form, filled out completely and properly. 

(1)    There is no required fee for renewal of the Sales Representative status; however, Sales Representatives may not participate in the MPCP.

(2)     Sales Representatives who do not timely submit an Annual Renewal Form will have their access to the UnFranchise® Business Account suspended; however, a Late Renewal Application and Agreement may be submitted to the Data Processing Department and access to the UnFranchise® Business Account will be reinstated.

NOTE: Upline Distributors should be aware that if the Annual Renewal Form is not timely received, the Sales Representative’s Personal Business Volume will purge (erased to 0). This will impact Group Business Volume even if other requirements are met for accrual.

(B)     Distributors: To renew the IDA&A and maintain Distributor status, a Distributor must timely (a) submit to the Data Processing Department a paper Annual Renewal Form along with the annual renewal fee or (b) process the renewal and pay renewal fees through the Auto Renewal Program at the UnFranchise® Business Account. Each Distributor must pay his or her own Annual Renewal Fees.

(1)    Distributors who do not timely submit an Annual Renewal Form will have all Personal Business Volume purged (erased to 0), Group Business Volume flushed (erased to 0), their initial Q-date erased from the computer database, and their access to the UnFranchise® Business Account will be suspended. 

(2)    Distributors submitting the paper Annual Renewal Form without paying the renewal fee will have accrued Group Business Volume flushed (erased to 0), their initial Q-date erased from the computer database, and their status reduced to Sales Representative. However, the Distributor’s Personal Business Volume will not be purged. The reduction to Sales Representative status will cause the quarter (on which quarterly Minimum Activity Requirements due dates are based) to no longer be based on the initial Q-date, but on the Start Date. See Minimum Activity Requirements.

(3)     Distributors who do not timely renew must submit a Late Renewal Application and Agreement and pay the full subscription fee to regain Distributor status. A Late Renewal does not alter the Distributor’s initial placement and sponsor information but the Distributor will need to re-qualify and will receive a new Q-date only after meeting all qualification requirements. Another First-Quarter Grace Period applies. See Minimum Activity Requirements and Exercising the Monthly Accrual Option.

(4)    If an Annual Renewal Form is submitted timely but with a payment for renewal fees which cannot be accepted by Market America for any reason (e.g. counter or starter checks, checks without the Distributor’s name and address printed on them by the bank, etc.), the form and fees will be returned to the Distributor unprocessed. In this case the Distributor must submit another Annual Renewal Form and the proper renewal fee, by the Annual Renewal deadline.

(5)    Auto Renewal Program.

(a)     To use the Auto Renewal Program, a Distributor must “Opt In” to the program in the UnFranchise® Business Account.  A Distributor may Opt In to the program at initial sign-up or anytime thereafter, except that access to the Auto Renewal Program is blocked 5 days prior to the first day of the Start Month. During this period, the Distributor can neither Opt In or cancel the Auto Renewal Program because the renewal processing has already begun.

(b)     Primary and Secondary credit cards can be designated on the credit card screens in the UnFranchise® Business Account.

(i)      The Primary credit card will be charged the renewal fee on the first business day of the Start Month.

(ii)     If the first attempt to charge the Primary credit card fails, then the Primary credit card will be charged the renewal fee again on the second business day of the Start Month.

(iii)    If the second attempt to charge the Primary credit card also fails and there is a Secondary credit card selected, then on the third business day of the Start Month the Secondary credit card will be charged the annual renewal fee.

(iv)    If all of the above attempts to charge the renewal fee fail, then the Distributor will need to manually renew by sending in a paper Annual Renewal Form along with the renewal fee, before the last business day of their Start Month.

(c)     Distributors may also set up Auto Renewal for their Asia-Pacific Global operation by going to that country’s UnFranchise® Business Account. International Re-entry Center (IRC) operations under Global Unification do not require annual renewal separate from the renewal of the primary distributorship.

(6)     Annual renewal fees are nonrefundable.

SEC. 9                Exercising the Monthly Accrual Option

A qualified BDC will accrue Group Business Volume month-to-month provided (1) the minimum amount of Personal Business Volume is generate and assigned to BDC-001 and (2) an order for the UnFranchise® Management System (UFMS) is received by Market America, both by the appropriate dates. This Monthly Accrual Option may be exercised by using the Transfer Buying Program or manual orders for the minimum amount of PBV and/or the UnFranchise Management System. Note: Distributors must pay for their own UFMS. The only exception is if UFMS is ordered on a Distributor’s first-time order, which can be paid for by an upline Distributor.

(A)    To Exercise the Monthly Accrual Option: Minimum monthly Personal Business Volume amounts for exercising the Monthly Accrual Option are as follows: 50 Personal Business Volume for Distributor Level; 100 Personal Business Volume for Coordinator Level; and 150 Personal Business Volume for Executive Coordinator Level or higher Pin Level. The respective Pin Levels shall be determined based on MPCP pay out criteria satisfied in ANY of the MPCPs (i.e. “Global”) in which the Distributor is qualified. Example: if a Distributor receives the equivalent of US$300 commission for reaching 1200/1200, 2400/2400, or 3600/3600 GBV in a “Global” MPCP, then the Distributor shall be considered a “Coordinator” in their “Home Country” MPCP and ALL associated Pin Level requirements for all MPCPs shall apply. Distributors placing a product order or orders for the minimum monthly Personal Business Volume (50, 100, or 150) assigned to their BDC-001 and ordering or renewing their UnFranchise® Management System subscription by their monthly Q-date will satisfy the Monthly Accrual Option for every one of their qualified BDCs regardless of the number (excluding acquired/purchased BDCs).

(1)    First Three-Q-Date Period (First-Quarter Grace Period): A qualified BDC will continue to accrue Group Business Volume through the first Three-Q-Date Period provided a minimum of 50 Personal Business Volume in addition to the qualifying order(s) has been placed and assigned to the respective Distributor’s BDC-001 within (i.e., prior to the end of) their first Three-Q-Date Period, and the respective Distributor has purchased at least one month’s subscription to the UnFranchise® Management System in the last month of their first Three-Q-Date Period..

(a)    No Commissions Earned in First Quarter: If no commissions are earned within the first Three-Q-Date Period, and if both a minimum of 50 Personal Business Volume and at least one month's subscription to the UnFranchise® Management System is not placed within the first Three-Q-Date Period, then all Group Business Volume accrued by the Distributor’s qualified BDC(s) will be flushed (erased to 0).

(b)    Commissions Earned in First Quarter: If a commission has been earned within the first Three-Q-Date Period, the First-Quarter Grace Period is effectively ended (unless a 28-Day Grace Period applies — see 28-Day Grace Period). If no 28-Day Grace Period applies, the Distributor must submit the applicable minimum Personal Business Volume (100 PBV for Coordinator; 150 PBV for Executive Coordinator) and an order for the UnFranchise® Management System to exercise the Monthly Accrual Option. This is accomplished by assigning the minimum PBV amount to the Distributor's BDC-001 and purchasing a subscription to the UnFranchise® Management System for the current monthly Q-date period. If a commission check is earned by a Distributor within the first Three-Q-Date Period, he/she should immediately contact an active upline Certified Executive Coordinator to ensure that appropriate Business Volume and an order for the UnFranchise® Management System are placed to continue to accrue GBV month-to-month.

(2)    After the First Quarter: After the first Three-Q-Date Period, to continue accruing Group Business Volume on a month-to-month basis, Distributors must place the applicable minimum PBV amount (50, 100, or 150 PBV) assigned to their BDC-001 and order or renew their UnFranchise® Management System subscription prior to their Q-date each month. Note: The minimum PBV and order for the UnFranchise® Management System must be received by the week-ending Friday in which the Q-date falls. To count for a given month, the BV and order for the UnFranchise® Management System must be placed after the end of the previous monthly Q-date period and by the last day of the current monthly Q-date period.

(3)    28-Day Grace Period: For any commissions earned that cause Distributors' criteria to change regarding exercising the Monthly Accrual Option, a 28-Day Grace Period applies under the following guidelines:

(a)     BV-related: If a commission check that will increase a Distributor’s minimum monthly PBV amount is earned within 28 days of the upcoming monthly Q-date, then the Distributor remains at the current BV level to continue to accrue GBV month-to-month. The Distributor must then submit the applicable PBV (100 PBV for Coordinator; 150 PBV for Executive Coordinator) for the first monthly Q-date period for which the 28-Day Grace Period does not apply. However, if a commission check that will increase a Distributor’s minimum monthly PBV amount is earned, and the upcoming monthly Q-date is more than 28 days from the date the check is earned, then the Distributor must submit the applicable PBV (100 PBV for Coordinator; 150 PBV for Executive Coordinator) by the next monthly Q-date to continue to accrue GBV month-to-month. Note: If a commission that will increase a Distributor’s minimum monthly PBV amount is earned within 28 days of the upcoming monthly Q-date, and the Distributor is in his/her first Three-Q-Date Period, then the rules of the first Three-Q-Date Period still apply as if no commissions have been earned. See First Three-Q-date Period (First-Quarter Grace Period).

(b)     UnFranchise® Management System-related: If a commission check is earned within 28 days of the upcoming monthly Q-date, and the Distributor is in his/her first Three-Q-Date Period, then the rules of the first Three-Q-Date Period still apply as if no commissions have been earned. See First Three-Q-date Period (First-Quarter Grace Period).

(B)    Distributors Not Exercising Accrual Option: Exercising the Monthly Accrual Option is not required.

(1)    If Distributors choose not to exercise the Monthly Accrual Option, their accrued Group Business Volume through the end of the monthly Q-date period for which the Monthly Accrual Option is not exercised will flush (erased to 0); however, Distributors who remain qualified will begin accruing Group Business Volume again beginning the commission week directly after the flush.

(2)    If Distributors do not exercise the Monthly Accrual Option by their next monthly Q-Date, their accrued Group Business Volume will flush (erased to 0) again at the end of that monthly Q-date period, and so on.

(C)     Active Life Span Of Group Business Volume: Accrued Group Business Volume shall have a 365-day life span from the date of the order. The life span of Group Business Volume does not extend to the Friday of the week in which the order turns 365 days old, but expires on the 366th day. Group Business Volume greater than 365 days old shall no longer count towards the payout of commissions.

SEC. 10              Activating a Business Development Center (Activation)

A BDC must be activated to earn commissions and leadership bonuses. This is accomplished by the Distributor personally sponsoring at least one qualified Distributor placed in the left downline of the BDC and personally sponsoring at least one qualified Distributor placed in the right downline of the BDC.

(A)     Minimum Requirements and Maintenance: For a BDC to earn commissions and management bonuses at least one personally sponsored and qualified Distributor must be in the left and right downline. Failure to maintain at least one personally sponsored and qualified Distributor on both the left and right side of a BDC will result in the sponsoring Distributor forfeiting commission payouts when required volumes are reached. No retroactive commission will be issued.

(B)    Distributor Eligibility:

(1)     A newly sponsored and qualified Distributor who is not properly linked (unlinked BDC) will not be valid for activating the sponsoring Distributor until the date of linkage correction.

(2)    Qualified Distributors operating from the same address as any existing Distributor, even if the distributorship has been approved by the company, will not count towards meeting the activation requirement for any Distributor.

(3)     BDCs placed from re-entry authorization or other acquired BDCs will not count towards meeting the activation requirement.

(4)    Nonprofit Organization (NPO) distributorships will not count towards meeting the activation requirement.

(5)     Fraudulent, bogus or fabricated sponsorship in order to satisfy the activation requirement is prohibited and will invalidate activation. Fraudulent, bogus, or fabricated sponsorship includes, without limitation, the use of any of the following to disguise the true identity and/or lack of activity on the part of the Distributor being used for activation: (a) trade names, (b) assumed names, (c) federal identification numbers, (d) fraudulent Social Security or Social Insurance numbers, (e) agreements to operate a distributorship, (f) a spouse or significant other, (g) family members, (h) business or non-profit entities, or (i) acting in concert with a third party to satisfy activation, where such third party does not undertake the typical, and in some cases required, activities of bona fide distributors. These activities include, without limitation, retailing, meeting sales requirements, sponsoring, attending meetings, attending any required training classes, and completing certification requirements. If the company discovers such practices, the following consequences may result:

(a)   The violating Distributors may be required to pay back all unearned commissions paid out as a result of the
invalid sponsorship;

(b)    The violating Distributors may have all accrued volume flushed (erased to 0);

(c)    The violating Distributors may be subject to the Corrective Action Procedure.

SEC. 11              Minimum Commissions Requirements

The following minimum requirements shall apply for Distributors to continue to earn commissions and/or bonuses under the MPCP.

(A)     Form 1000: A Distributor shall complete and submit to Market America a current, valid Form 1000, accompanied by a minimum of two sales receipts totaling $200.00, to receive any commission, including the Distributor’s first commission. Failure to comply will result in the commission being held either four consecutive weekly commission cycles from the week the commission would have otherwise been paid, or through the end of the current quarter if the commission was for BDC-001, whichever comes first. If the Form 1000 requirement has still not been met by the end of this hold period, the commission will be forfeited. Note: The Form 1000 for BDC-001 is due by the end of the Distributor’s quarter, regardless of commissions. If a valid Form 1000 is not received for BDC-001 by the Distributor’s quarter-ending date, not only will the Distributor flush any Group Business Volume and purge Personal Business Volume totals, but also any commissions on hold for BDC-001 for failing to meet the Form 1000 requirement will be forfeited.

(B)     Coordinators (Distributors Who Have Earned A US$300/£170 for Distributors residing in the European Union
Commission):
In addition to the Form 1000 requirement, Coordinators shall complete and submit to Market America an Executive Coordinator Qualification and Application (Form 1001) and an Executive Coordinator Acknowledgement and Agreement (Form 925) within 28 days of qualifying for their first US$300 (£170 for Distributors residing in the European Union) commission. Failure to comply will result in the next commission being held for four consecutive weekly commission cycles from the week the commission would have otherwise been paid and if the requirement has still not been met by the end of this hold period, the commission will be forfeited. Completion and submission of Form 1001 and Form 925 shall be performed initially, and thereafter this requirement shall be satisfied annually by submitting the Annual Renewal Form.

(C)     Executive Coordinators (Distributors Who Have Earned A US$600.00/ £340 for Distributors residing in the European Unino Commission For Accruing 5,000 Group Business Volume On Left And Right Sides): In addition to the Form 1000 requirement and the minimum commissions requirements set forth for Coordinators, Executive Coordinators shall satisfy the following minimum commissions requirements:

(1)     Executive Coordinators must complete and pass (tests) a New Distributor Training, a Basic 5 Training, and an Executive Coordinator Certification Training online within 28 days of qualifying for their first Executive Coordinator US$600 (£340 for Distributors residing in the European Union) commission. Failure to comply will result in the next commission being held for four consecutive weekly commission cycles from the week the commission would have otherwise been paid, and if the requirement has still not been met by the end of this hold period, the commission will be forfeited.

(2)     Executive Coordinators and higher Pin Levels shall fulfill their supervisory/managerial responsibilities.

SEC. 12              Management Performance Compensation Plan (MPCP) Payout Criteria

Qualified, active, and activated BDCs participating in the MPCP shall be eligible to earn commission and leadership bonuses weekly on Group Business Volume generated by Distributors in their downline organizations.

(A)   Weekly Cycle: Weekly commission cycles calculating accrued Group Business Volume from product orders placed, correctly assigned, and processed shall run from 2:00 p.m. ET on Friday to 1:59 p.m. ET of the following Friday (excluding “grace” period provided to UnFranchise® Management System (UFMS) members using faxed orders, 800-number orders, or the online ordering process). Note: The Friday-to-Friday commission cycle only refers to the weekly cycle by which Market America determines the qualification of commissions; it does not refer to the time frame in which Market America processes those commissions.

(1)     Orders received by mail by 1:59 p.m. ET Friday will count towards the current week. The 1:59 p.m. deadline also pertains to all other mail, such as mailed Form 1000, other business forms, sales tax documents, etc. Note: Postal records concerning delivery times for U.S. Postal Service packages are not conclusive; therefore, for USPS packages, the official time of delivery is based solely on the actual time of receipt by Market America as recorded by Market America.

(2)     Form 1000’s timely filed by the end of the Distributor’s quarter and submitted online by 11:59 p.m. ET on Friday will count towards the current period.

(3)     Orders placed on SHOP.COM and GLOBAL.SHOP.COM by registered Preferred Customers by 4:59 p.m. ET on Friday will count towards the current period. (For clarification purposes, ET means US eastern standard time).

(4)     UFMS members will have until 4:59 p.m. ET on Fridays to fax orders or place orders through the 800-number using an approved and registered credit card or “credit on account” as the method of payment.

(5)     UFMS members have until 11:59 p.m. ET on Fridays to place orders through the online ordering process. Non-UFMS members ordering online have until 4:59 p.m. ET on Fridays to place orders through the online ordering process using an online checking account.

Note: If Market America determines that the UFMS is not functioning correctly from corporate office for an unacceptable amount of time, UFMS members have until 1:59 p.m. ET on Saturday to fax orders using an approved and registered credit card or “credit on account” as the method of payment. The UFMS member must print clearly at the top of the order form “UFMS Problem — please consider for week ending xx/xx/xx.” No other orders will be accepted. 

Note: The determination to extend the normal ordering deadline is completely at the discretion of Market America. If Market America determines that there was not enough “down time” to warrant an extension past the 11:59 p.m. ET deadline for “Online Electronic Ordering,” then any orders received by Market America after 11:59 p.m. ET will be credited for the following week.

(6)     Weekly commissions and management bonuses shall be paid on Group Business Volume totals, based on final posting and reconciliation figures, two weeks from the week-ending Friday of that particular commission cycle.

(B)    Weekly Compensation Criteria And Management Parameters:

(1)     US$300.00 Commission: for accruing equal to or greater than 1,200 Group Business Volume on the left side and 1,200 Group Business Volume on the right side of the respective BDC.

(2)     US$300.00 Commission: for accruing equal to or greater than 2,400 Group Business Volume on the left side and 2,400 Group Business Volume on the right side of the respective BDC. This includes the previous 1,200 Group Business Volume.

(3)     US$300.00 Commission: for accruing equal to or greater than 3,600 Group Business Volume on the left side and 3,600 Group Business Volume on the right side of the respective BDC. This includes the previous 2,400 Group Business Volume.

(4)     US$600.00 Commission: for accruing equal to or greater than 5,000 Group Business Volume on the left side and 5,000 Group Business Volume on the right side of the respective BDC. This includes the previous 3,600 group Business Volume.

(5)     US$600.00 Leadership Bonus: when having a BDC on the left side and a BDC on the right side each receive a US$600.00 commission for reaching the 5,000/5,000 Group Business Volume compensation criteria, in the same weekly commission cycle that the respective BDC earns a $600.00commission for reaching the 5,000/5,000 Group Business Volume compensation criteria. Note: All three commissions must meet all requirements for release at the same time. If any commission that would otherwise contribute to a Leadership Bonus is held for any reason (see Minimum Commissions Requirements), then that held commission will not be eligible to contribute towards any Leadership Bonus for the week that the check would have been earned if not held. Also, only Home Region Independent Distributors in the Independent Downline that flush in the same weekly pay cycle count towards qualifying for Leadership Bonus.  Leadership Bonus will not be paid on the UGC.

(6)    All accrued Group Business Volume totals are cumulative (i.e., inclusive of the Group Business Volume accrued for reaching the previous compensation criteria), until reaching the 5,000/5,000 Group Business Volume compensation criteria. Upon reaching the 5,000/5,000 GBV compensation criteria, a BDC flushes (erases GBV to 0), and starts the commission cycle over again the next week.

(7)    Any Group Business Volume in excess of the 5,000 Group Business Volume compensation criteria shall not carry over into the next commission cycle.

(8)    All or any part of the compensation criteria met in a given weekly commission cycle shall be paid for that week. The maximum commission and leadership bonuses one BDC may earn in a weekly commission cycle shall be $2,100.00.

(9)     The aforementioned does not apply to Distributors based in the European Union; Weekly Compensation Criteria And Management Parameters for Distributors doing business in the European Union is as follows:

(a)     £170 Commission: for accruing equal to or greater than 1,200 Group Business Volume on the left side and 1,200 Group Business Volume on the right side of the respective BDC.

(b)     £170 Commission: for accruing equal to or greater than 2,400 Group Business Volume on the left side and 2,400 Group Business Volume on the right side of the respective BDC. This includes the previous 1,200 Group Business Volume.

(c)     £170 Commission: for accruing equal to or greater than 3,600 Group Business Volume on the left side and 3,600 Group Business Volume on the right side of the respective BDC. This includes the previous 2,400 Group Business Volume.

(d)     £340 Commission: for accruing equal to or greater than 5,000 Group Business Volume on the left side and 5,000 Group Business Volume on the right side of the respective BDC. This includes the previous 3,600 groups Business Volume.

(e)     £340 Leadership Bonus: when having a BDC on the left side and a BDC on the right side each receive a £340 commission for reaching the 5,000/5,000 Group Business Volume compensation criteria, in the same weekly commission cycle that the respective BDC earns a £340 commission for reaching the 5,000/5,000 Group Business Volume compensation criteria. Note: All three commissions must meet all requirements for release at the same time. If any commission that would otherwise contribute to a Leadership Bonus is held for any reason (see Minimum Commissions Requirements), then that held commission will not be eligible to contribute towards any Leadership Bonus for the week that the commission would have been earned if not held.

(f)      All accrued Group Business Volume totals are cumulative (i.e., inclusive of the Group Business Volume accrued for reaching the previous compensation criteria), until reaching the 5,000/5,000 Group Business Volume compensation criteria. Upon reaching the 5,000/5,000 GBV compensation criteria, a BDC flushes (erases GBV to 0), and starts the commission cycle over again the next week.

(g)     Any Group Business Volume in excess of the 5,000 Group Business Volume compensation criteria shall not carry over into the next commission cycle.

(h)     All or any part of the compensation criteria met in a given weekly commission cycle shall be paid for that week. The maximum commission and leadership bonuses one BDC may earn in a weekly commission cycle shall be £1,190.

(10)  Commission payments may be made by direct deposit to the bank account on file with Market America or via Payoneer, as registered at the Distributor’s UnFranchise® Business Account.

(11)  If for any reason a Distributor seeks to recall a direct deposit before the time necessary for the bank to reserve the deposit, for example, where the bank account on file has been closed or the account information was input incorrectly, a US$35.00 service fee will be charged against the funds deposited and the payment will be made to an account properly registered at the Distributor’s UnFranchise® Business Account. 

(12)   Commissions earned and any credit account balance may be held and/or disbursed in accordance with a court-ordered collections action, a governmental levy, to off-set amounts owed to Market America, and as part of certain Corrective Action proceedings. A service fee of US$30.00 will be charged in cases where Market America is required to administer processes to accomplish the hold and/or disbursement ordered.

(13) Disputes between parties to a distributorship, including spouses, may require commissions and credit accounts held until resolved. A service fee of US$30.00 will apply against the distributorship in this instance as well.

SEC. 13              Additional/Multiple Business Development Centers

Additional BDCs may be placed and/or acquired (other than initial entry) only in the downline of a Distributor’s BDC-001 through “re-entry authorization” or “acquisition” of a BDC.

(A)    Re-entry Business Development Centers:

(1)    A Distributor is granted a “re-entry” authorization the first time and only ONE time per BDC upon receiving a commission for reaching the 5,000/5,000 GBV compensation criteria for the respective BDC within their “Home Country” MPCP. A re-entry shall NOT be awarded for reaching the 5,000/5,000 GBV compensation criteria in a “Global” MPCP (refer to the Global Management Performance Compensation Plan Section to learn how to earn additional “Global” BDCs). The “re-entry” will not be considered valid by Market America until after the commission has been received by the Distributor. Subsequent attainment of the 5000/5000 GBV compensation criteria will not authorize another “re-entry” unless accomplished by an additional BDC (e.g., 002, 003, 004 etc.). An invalid “re-entry qualification” order will have BV automatically assigned to the Distributor’s BDC-001.

(2)    The “re-entry” of an additional BDC must be exercised in accordance with one of the two following criteria:

(a)     There must be at least five (5) distributorships inclusive of all their BDCs (established during enrollment) between the re-entering Distributors’ initial BDCs and the placement of the “re-entry”; or

(b)     The “re-entry” must be placed below a BDC in your organization (excluding one of your personal BDCs) that has completed the pay cycle (5,000 BV on the left and 5,000 BV on the right, earning the final $600.00 commission) within the MPCP.

 (3)    Additional BDCs from “re-entry” must be qualified (200 Personal Business Volume) at the time the “re-entry” BDC is placed. A Distributor Sales Report (Form 1000) must be completed and submitted accompanied by a minimum of two retail receipts totaling US$200.00 (£115 for Distributors residing in the European Union) prior to earning a commission (this is a one-time-only requirement unless at some point the Distributor purges).

(B)     Acquired Business Development Centers: Acquiring additional BDCs in a Distributor’s downline is approved only in very rare, extenuating circumstances and begins with obtaining written approval from the company. Distributors may not sell, assign, or otherwise transfer their BDC(s), marketing position, or other Distributor rights and obligations without written authorization from the company. Distributors must first submit a letter to the Compliance Department requesting approval to purchase the BDC(s) and explaining in detail the extenuating circumstances.

(1)    Limitations:

(a)    The prospective “buyer” must be the equivalent or higher Pin Level as the “selling” Distributor and must have been an Independent Distributor with Market America for at least 12 months prior to acquisition.

(b)    Distributors may only acquire a BDC in their downline and the “selling” Distributor cannot have been inactive more than 270 days.    

(c)     Distributors relinquishing rights and obligations to a BDC shall not be eligible to be re-sponsored as a Distributor for a period of 270 days from the date of sale and/or transfer.

(2)    Approval:

(a)     Upon written approval by the company, Distributors must submit a notarized purchase agreement, signed by both the terminating and the purchasing Distributors, along with a US$10.00 (£7.00 for Distributors residing in the European Union) per BDC processing fee, attention of the Compliance Department.

(b)    Each acquired distributorship shall be assigned a separate and distinct identification number from the Distributor’s original BDC(s), of which the company will notify the acquiring Distributor by telephone, letter or fax.

(c)    Upon receiving the new identification number, the acquiring Distributor must requalify each acquired BDC in order to begin accruing Group Business Volume in the respective center. Note: The original Q-date of the BDC shall remain the same as when originally qualified. There is not another initial First-Quarter Grace Period. Distributors must meet the Personal Business Volume based on the Pin Level attained by the previous Distributor to continue to accrue GBV month-to-month.

(d)     Each acquired BDC must reactivate to be eligible to earn commission and Leadership Bonuses. Original sponsorship rights to downline Distributors from the acquired BDCs for activation requirements terminate upon acquisition.

(e)    A Distributor Sales Report (Form 1000) must be completed and submitted accompanied by a minimum of two retail receipts totaling US$200.00 (£115 for Distributors residing in the European Union) within 90 days of qualification.

(f)     The acquired BDC-001 must be enrolled in the Transfer Buying Program within 28 days from the issuance of the new ID number by the company.

(g)     All activity requirements shall apply to each acquired BDC or groups of BDCs (in the case of acquiring a Master UnFranchise® Owner Level) separate and distinct from BDCs owned by initial entry or owned through re-entry authorization. This shall include requirements relative to qualification, activation, management, Annual Renewal, UFMS membership, etc.

(h)     Please allow 10 to 15 business days from the date of written company approval for Market America to set up
an acquired BDC. Do not place Distributors downline until this process has been completed in the computer system.

SEC. 14              Market America’s Ladder System of Achievement

Field management levels (Pin Levels) may be earned through participation in the Management Performance Compensation Program. Distributors attaining new field management Pin Levels will be recognized in Market America’s Powerline magazine. Field management Pin Level requirements are as follows.

Level 1 — DISTRIBUTOR

(1)    Complete Independent Distributor Application and Agreement; and

(2)    Submit subscription fee.

Level 2 — QUALIFIED DISTRIBUTOR

(1)    Complete Level 1; and

(2)    Place and accumulate 200 Personal Business Volume in orders in BDC-001; and

(3)    Maintain proper linkage in the Market America genealogy.

Level 3 — COORDINATOR (Blue Pin)

(1)    Complete Level 2; and

(2)    Develop two sales and distribution organizations, one on the left and one on the right side of a BDC, each accruing 1,200 Group Business Volume in a weekly commission cycle; and

(3)    Receive US$300.00 (£170 for Distributors residing in the European Union) commission check.

Level 4 — EXECUTIVE COORDINATOR (Blue Pin with One Diamond)

(1)    Complete Level 3; and

(2)    Develop two sales and distribution organizations, one on the left and one on the right side of a BDC, each accruing 5,000 Group Business Volume in a weekly commission cycle; and

(3)    Receive US$600.00 (£340 for Distributors residing in the European Union) commission check.

Level 5 — MASTER COORDINATOR (Blue Pin with Two Diamonds)

(1)    Complete Level 4; and

(2)    Receive US$600.00 (£340 for Distributors residing in the European Union) Management Bonus.

Level 6 — SENIOR MASTER COORDINATOR (Blue Pin with Two Diamonds and a Sapphire)

(1)    Complete Level 5; and

(2)    Receive US$3,000 ((£2550 for Distributors residing in the European Union) in commissions and Management Bonuses within four consecutive weekly commission cycles.

Level 7 — PROFESSIONAL COORDINATOR (Blue Pin with Three Diamonds)

(1)    Complete Level 5; and

(2)    Receive US$4,500 (£4,250 for Distributors residing in the European Union) in commissions and Management Bonuses within four consecutive weekly commission cycles.

Level 8 — SUPERVISING COORDINATOR (Blue Pin with Four Diamonds)

(1)    Complete Level 5; and

(2)    Receive US$7,500 (£5,700 for Distributors residing in the European Union) in commissions and Management Bonuses within four consecutive weekly commission cycles.

Level 9 — NATIONAL SUPERVISING COORDINATOR (Blue Pin with Five Diamonds)

(1)    Complete Level 5; and

(2)    Receive US$10,000 (£8,500 for Distributors residing in the European Union) in commissions and Management Bonuses within four consecutive weekly commission cycles.

Level 10 — EXECUTIVE SUPERVISING COORDINATOR (Blue Pin with Six Diamonds)

(1)    Complete Level 5; and

(2)    Receive US$15,000 ((£10,200 for Distributors residing in the European Union) in commissions and Management Bonuses within four consecutive weekly commission cycles.

Level 11 — DIRECTOR (Onyx with One Diamond)

(1)    Complete Level 5; and

(2)    Receive US$18,000 (£14,200 for Distributors residing in the European Union) in commissions and Management Bonuses within four consecutive weekly commission cycles.

Level 12 — EXECUTIVE DIRECTOR (Onyx with Two Diamonds)

(1)    Complete Level 5; and

(2)    Receive US$25,000 (£20,000 for Distributors residing in the European Union) in commissions and Management Bonuses within four consecutive weekly commission cycles.

Level 13 — FIELD VICE PRESIDENT (Onyx with Three Diamonds)

(1)    Complete Level 5; and

(2)    Receive US$36,000 (£25,000 for Distributors residing in the European Union)  in commissions and Management Bonuses within four consecutive weekly commission cycles.

Level 14 — EXECUTIVE FIELD VICE PRESIDENT (Onyx with Four Diamonds)

(1)    Complete Level 5; and

(2)    Receive US$45,000 (£35,000 for Distributors residing in the European Union) in commissions and Management Bonuses within four consecutive weekly commission cycles.

Level 15 — SENIOR EXECUTIVE FIELD VICE PRESIDENT (Onyx with Five Diamonds)

(1)    Complete Level 5; and

(2)    Receive US$63,000 ((£45,000 for Distributors residing in the European Union) in commissions and Management Bonuses within four consecutive weekly commission cycles.

Level 16 — FIELD PRESIDENT (Onyx with Six Diamonds)

(1)    Complete Level 5; and

(2)    Receive US$80,000 ((£57,000 for Distributors residing in the European Union) in commissions and Management Bonuses within four consecutive weekly commission cycles.

Level 17 — INTERNATIONAL FIELD PRESIDENT (Platinum with One Diamond)

(1)    Complete Level 5; and

(2)    Receive US$100,000 (£70,000 for Distributors residing in the European Union) in commissions and Management Bonuses within four consecutive weekly commission cycles.

Level 18 — INTERNATIONAL FIELD CHAIRMAN (Platinum with Two Diamonds)

(1)    Complete Level 5; and

(2)    Receive US$125,000 (£85,000 for Distributors residing in the European Union) in commissions and Management Bonuses within four consecutive weekly commission cycles.

Level 19 — SENIOR INTERNATIONAL FIELD CHAIRMAN (Platinum with Three Diamonds)

(1)    Complete Level 5; and

(2)    Receive US$150,000 in commissions and Management Bonuses within four consecutive weekly commission cycles.

SEC. 15              Global Management Performance Compensation Plan

The following are requirements for Distributors wishing to expand to the Asia-Pacific Region, as defined in the Regions Unification section, to be eligible to participate in the Global MPCP. Expansion into the Europe Region is explained under Global Unification.

(A)     Application: Distributors must log into their UnFranchise® Business Account and complete and submit both the Global UnFranchise® Owner Agreement and the Non-resident Independent Distributor Application and Agreement.

(B)     Designation of Initial Participating BDC: Distributors must designate a currently existing personal BDC to participate in the accrual of global Group BV generated from the purchase of products by Asia-Pacific Distributors and their customer base within the left and right organizations of this designated personal BDC. Initially Distributors may only designate one personal BDC to participate in the global MPCP. Distributors must log into their UnFranchise® Business Account, and register to designate their initial personal BDC for participation in the global MPCP.

(C)     Designation of Additional Participating BDCs: Distributors will earn the right to designate additional personal BDCs to participate in the global MPCP through an additional BDC designation process. It works exactly like the Re-Entry Authorization process within the standard MPCP, with the only difference being that instead of earning the right to create a new BDC, eligible Distributors will simply designate an additional existing personal BDC within their organization in which to accrue global GBV for additional potential global commissions. The first time a personal BDC designated to participate in the global MPCP completes the entire compensation payout cycle (i.e. earns a commission for accruing at least 5,000 global GBV from the left organization and 5,000 global GBV from the right organization), Distributors are authorized to designate one additional existing personal BDC to participate in the global MPCP in the Asia-Pacific Region.

(D)     Placement of Personally Sponsored Global Distributor BDCs: Global Distributors must be linked/placed on either the left or right side of the sponsoring Distributor’s designated BDC(s) currently existing in the UnFranchise® Business Development System. All BDCs, “Home Region” and global, are placed within the same genealogical or organizational system.

(E)     Accrual of Global GBV: To make the designated BDC eligible to accrue global GBV, Distributors must order a global-country subscription kit (this is done during the initial sign-up process) and place an order for 200 PBV worth of “Home Region” products and assign BV placement to the designated BDC (this is done during the initial sign-up process once the Distributor has designated his/her global BDC). To continue accruing global GBV towards commission payout criteria, Distributors must meet the Minimum Activity Requirements of the standard MPCP and exercise the Monthly Accrual Option in accordance with the standard requirements of the MPCP. A bad flush and/or purge in the standard MPCP for not meeting the Minimum Activity Requirements or executing the Monthly Accrual Option will result in the same within the Global MPCP. If a purge occurs in the “Home Region” MPCP, the “Home Region” BDCs must be requalified before re-qualifying any global BDCs. Note: Distributors will not accrue any global GBV from orders generated prior to qualifying their own global BDC.

(F)     Minimum Global GBV Commissions Requirements: In order to be eligible to earn and receive global commissions Distributors must:

(1)     Be activated in accordance with the standard MPCP requirement.

(2)     Activate their designated global BDC by personally sponsoring at least one qualified Asia-Pacific Distributor into the left organization of your designated BDC and at least one qualified Asia-Pacific Distributor into the right organization of your designated BDC.

(3)    Have a current UnFranchise® Management System subscription.

(4)    Maintain Minimum Activity Requirements in their “Home Region” MPCP.

(G)    Assignment of BV: Home-Region Distributors ordering products having home-Region BV may only assign BV downline to BDCs of personally sponsored home-Region Distributors enrolled in the Transfer Buying program, and these products must be shipped to a home-Region address. Home-Region Distributors ordering products having global BV may only assign BV downline to BDCs of personally sponsored Asia-Pacific Distributors enrolled in the Transfer Buying program.

(H)     Global Leadership Bonuses: A global Leadership Bonus is earned in the same manner as in the “Home Region” MPCP.
However, to qualify for a global Leadership Bonus, a Distributor must have an Asia-Pacific Region BDC on the left side of its organization and an Asia-Pacific Region BDC on the right side of its organization reach 5,000/5,000 in Business Volume generated in the Asia-Pacific Region in the same weekly commission cycle that the Distributor reaches 5,000/5,000 Business Volume in the Asia-Pacific Region.

SEC. 16              Regions Unification

In order to simplify the international expansion, countries have been grouped in Regions. Distributors do not need to follow the requirements of the Global MPCP to expand internationally into Regions other than to the Asia-Pacific Region. If a Distributor wishes to internationally expand to the Asia- Pacific Region (as defined below) the Global MPCP requirements must be followed.

(A)   Regions:

(1)   Americas Region: The United States, Canada, Mexico and EMP countries in Latin America are unified in one single region, the Americas Region. 

(2)   Asia-Pacific Region: Hong Kong, Taiwan, Australia and EMP countries in the Asia-Pacific Region are unified in one single region, the Asia- Pacific Region.

(3)   Europe Region: The United Kingdom, Spain and other EMP countries in the European Union are unified in one single region, the Europe Region.

(B)     Unified Accounts: BV and IBV accrued by Distributors doing business in two or more countries within a Region count toward a unified account (“Unified Account”) Note: All Distributors who have expanded their business to Taiwan, Hong Kong and/or Australia will have their accounts in those countries unified.

(C)     Commission: Commissions shall be calculated based on BV and IBV accrued in the Unified Account. The commissions will be paid in the currency of the Distributor’s “home country,” i.e. for a Canadian Distributor commissions will be paid in Canadian Dollars.

(D)     Compliance with local rules and regulations: In order to comply with the different laws and regulations of the countries in which Market America and/or its affiliates operate, the Career Manual varies from country to country according to applicable laws and regulations. Distributors expanding within a certain Region and into other Regions must conduct their activities and manage their organizations’ activities in those countries in accordance with the Career Manual of the particular country or region and in accordance with the laws and regulations which govern their business operations in the particular country or region.

SEC. 17              Global Unification

(A)   IRC

(1)   Expansion: Every Market America Independent Distributor receives an International Re-Entry Centre (IRC) to expand into the Europe Region. Market America Independent Distributors expanding into the Europe Region do not have to follow the Global MPCP requirements in Section 14 of this Chapter. It suffices that the IRC is qualified.

(2)   IRC qualification: An IRC is qualified by the placement of a 200 BV home region order into the IRC.

(3)   IRC placement: IRCs can be placed anywhere within a Market America Independent Distributor’s organization. It is recommended that IRCs be placed in the weak leg of the organization.

(4)   Activity Requirements: A Distributor Sales Report (Form 1000) must be completed and submitted accompanied by a minimum of two retail receipts totaling US$200 prior to earning a commission (this is a one-time-only requirement unless at some point the IRC purges).

(5)   Earning Commission: In order to earn commission, the IRC must be activated by personally sponsoring one qualified Europe Region distributor on the IRC left leg and one qualified Europe Region distributor on the IRC right leg. The IRC will be paid commissions on the BV/IBV accrued in the region where the IRC is placed only. Note: Home region BDCs placed below the Europe Region IRC will not accrue in the Europe Region IRC BV/IBV banks. However, it will flow upline in the home region genealogy above the Europe IRC. To better illustrate it, please see below:     

(6)   BV/IBV Accrual: BV/IBV accruing in the IRC is converted and flows upward as home region BV/IBV at the connection point in the home region genealogy. The converted BV/IBV from the IRC combines with home region BV/IBV to accumulate up through the genealogy line. It accrues in all qualified Home Region BDCs. Please see illustration below.

 

 

 

(7)   IRC Leadership Bonuses: An IRC Leadership Bonus is earned in the same manner as in the Home Region MPCP.  However, to qualify for an IRC Leadership Bonus, a Distributor must have a Europe Region BDC on the left side of its IRC organization and a Europe Region BDC on the right side of its IRC organization reach 5,000/5,000 in Business Volume generated in the Europe Region in the same weekly commission cycle that the Distributor’s IRC reaches 5,000/5,000 Business Volume in the Europe Region. Only IRC Region Distributors in the downline that flush in the same weekly pay cycle count toward qualifying for the IRC Leadership Bonus.

 

(8)   Additional IRCs: Additional IRCs for the Europe Region will be granted when any IRC initially reaches 5000/5000 accrued BV.

 

(B)   UGC

(1)   Unified Global Centre (UGC) is designated when an Independent Distributor has qualified his/her IRC and accumulates 1200/1200 BV/IBV in home region volume. Note: For those Independent Distributors who have already expanded internationally to the Europe Region, UGC replaces designated business global center.

(2)   When the combined BV/IBV reaches and exceeds 5000/5000 in a weekly pay cycle, the excess originated exclusively from the IRC is transferred to the UGC. Only IRC converted volume exceeding 5000/5000 in a weekly pay cycle is accrued to the UGC. Note: Home region BV/IBV never accrues to UGC and the UGC does not earn leadership bonus.

(3)   All IRC originated BV/IBV exceeding 5000/5000 in a weekly pay cycle accumulates in the UGC. UGC commissions are calculated and paid as per the MPCP (see Section 11 of this chapter for details).

 

    Last Modified :09/24/2014 11:51:14 AM EDT