Last modified: September 18, 2019

Forever Business Owners (FBO): Independent Contractors

Policies & Procedures


Definitions

Adjusted Wholesale Price: The 30% Discounted Price less the applicable Personal Discount, based on current sales level achievement, at which the products are sold to an FBO.

Accredited Sales: sales activity as reflected by the Case Credits of orders placed with the Company.

Active FBO: An FBO who has 4 or more Active Case Credits in his/her Home Country during a calendar month, at least one of which is a Personal Case Credit. The Active status of an FBO is established each Month, and is part of the qualification requirement to receive Volume and Leadership Bonuses, Gem Bonus, Earned Incentive payments, Eagle Manager status, Rally expenses and Chairman’s Bonus.

Bonus: a cash payment or credit toward future personal purchases from the Company to an FBO.

Personal Bonus: a payment to an FBO of 5-18% of the SRP of his/her online retail sales.

Preferred Customer Bonus: a cash payment to an FBO of 5-18% of the SRP of the Purchases of his/her personally-sponsored Preferred Customers.(c)

Volume Bonus(VB): a cash payment to a qualifying FBO of 3-13% of the SRP of the Personal Accredited Sales of a downline FBO who is not under an Active Downline Manager.

Leadership Bonus(LB): a cash payment to a qualifying Manager of 2-6% of the SRP of the Personal Accredited Sales of his/her downline Managers and the FBOs under those downline Managers.

Business Entity Distributorship: a Forever Business which has been assigned to a business entity.

CC: Case Credit

Case Credit: a value assigned to each product to calculate sales activity to determine advancements, bonuses, awards and earned incentives for the FBO as set forth in the FLP Marketing Plan. One Case Credit is awarded for each $214 ($283 in Canada) SRP of sales activity as reflected by product purchased from the Company. All Case Credits are calculated on a Month by Month basis.

Active Case Credits: Personal Case Credits plus Preferred Customer Case Credits. These determine an FBO’s Active status each Month.

Leadership Case Credits: Case Credits awarded to an Active LB Qualified Manager calculated at 40%, 20%, or 10% of the Personal and Non-Manager Case Credits of his/her1st, 2nd, or 3rdgeneration Leadership Bonus Qualified Managers, respectively.

Preferred Customer Case Credits: Case Credits as reflected by the Purchases of a personally-sponsored Preferred Customer.

Non-Manager Case Credits: Case Credits as reflected by the Personal Accredited Sales of a downline FBO who is not under a downline Manager.

Pass-Thru Case Credits: Case Credits as reflected by the Personal Accredited Sales of a downline Non-Manager that pass through an Inactive Manager. These are not counted as Non-Manager Case Credits toward the qualification of any incentives; however, they are counted as part of a Manager’s Total Case Credits.

Personal Case Credits: Case Credits as reflected by the FBO’s Personal Accredited Sales.

Total Case Credits: the total of all the FBO’s various case credits.

NEW Case Credits: The Case Credits generated by a Manager’s personally-sponsored Preferred Customer/FBO lines for 12 processing months after being sponsored (including the month in which that FBO line was sponsored), or until that FBO line achieves Manager, whichever occurs first.

Domestic: pertaining to the FBO’s Home Country.

Downline: all FBOs sponsored under an FBO, regardless of how many generations down.

Eagle Manager: A Manager who has achieved Eagle Manager status.

Earned Incentive (Forever2Drive): an incentive program that pays the qualifying FBOan extra cash payment for 36 months.

Earned Trip: a travel award for two persons, presented to the FBO who achieves any of various marketing plan incentive programs.

Forever Business Owner (FBO): One who, after purchasing a Start Your Journey Pak or placing orders equaling 2 Case Credits within any 2-consecutive-Month period, chooses to Opt-in to build a Forever business in accordance to the Forever Marketing Plan.

Gem Manager: a Manager who has developed at least 9 1st Generation Sponsored Recognized Managers.

Home Country: the country in which the FBO nominates and resides for a majority of time. It is in this country that the FBO must qualify to receive his/her Activity Waiver for all other FLP countries.

Incentive Shares: The total case credits generated, in accordance with the Chairman’s Bonus rules that are used to determine the FBO’s share of the bonus pool.

Inherited Manager: (see 5.04)

Leadership Bonus (LB) Qualified: a Recognized Manager who has qualified to receive Leadership Bonus for the Month.

Month: a calendar month (i.e., Jan 1 through Jan 31).

Operating Company: The administrative company under which one or multiple countries use a single database to calculate sales level advancements, bonus payments, and incentive qualifications.

Opt-in: The process of electing to participate in the sales/bonus compensation structure in FLP’s Marketing Plan as a Forever Business Owner (FBO) and agreeing to abide by the Company Policies and the Code of Professional Conduct, as may be amended from time to time.

Participating Country:A country that has qualified to participate in the Chairman’s Bonus Incentive by generating at least 3,000 cc during any three months of the previous calendar year (3,000cc for any two months if re-qualifying), and produces at least one Chairman’s Bonus qualifier.

Personal Discount: a discount, calculated as a percentage of SRP, of 5-18%, based on the current Sales Level. This discount amount is subtracted from the 30% Discounted Price to determine the Adjusted Wholesale Price.

Personal Accredited Sales: the SRP or Case Credits of the FBO’s sales activity as reflected by purchases made in his/her name.

Preferred Customer: One who registers to purchase products at a 15% discount off the Suggested Retail Price (SRP) but does not wish to be a Forever Business Owner (FBO) and participate in the Company Marketing Plan. He/She is considered a retail consumer and may purchase Forever Living products only for personal or family use. A Preferred Customer is not authorized or licensed to resell Forever Living products or to make purchases to help others resell products. Although he/she may be assigned an Identification Number, the Preferred Customer is not eligible to participate and/or receive compensation in any form unless he/she Opts-in to become an FBO. A Preferred Customer who has purchased a Start Your Journey Pak or product equaling 2 Case Credits within any 2-consecutive-Month period receives a 30% discount on future purchases and is eligible to Opt-in to become an FBO and participate in the sales/bonus compensation structure as defined in FLP’s Marketing Plan.

Preferred Customer Profit: 15% of the SRP of purchases made by Preferred Customers which is paid to the Sponsoring FBO, until the Preferred Customer has purchased a Start Your Journey Pak or product equaling 2 Case Credits within any 2-consecutive-Month period.

Qualifying Country: Any Participating Country that is being used as the Country of Qualification for the Chairman’s Bonus Incentive.

Recognized Manager: (see 5.01 )

Region: The region in which the FBO’s Home Country is located. Regions include North America, Latin America, Africa, Europe and Asia.

Responsored FBO: an FBO who has changed his/her Sponsor after 12 Months of no activity.

Retail Customer: One who purchases FLP products through authorized channels and has not yet applied to be a Preferred Customer.

Sales Level: any of various levels achieved by the cumulative Case Credits of the FBO and his/her Downline. These include Assistant Supervisor, Supervisor, Assistant Manager and Manager.

Sponsor: an FBO who personally signs up another FBO.

Sponsored Manager: (see 5.03)

SRP: Suggested Retail Price

Suggested Retail Price (SRP): The price, not including taxes, at which the Company recommends that products be sold to Retail Customers. It is upon this price that all bonuses and Personal Discounts are calculated.

Transferred Manager: (see 5.04)

Upline: the FBOs in the upline genealogy of an FBO.

Unrecognized Manager: (see 5.02)

VB: Volume Bonus

Waiver: awarded to the FBO who completes certain requirements to qualify for bonuses in one Operating Company that is accepted in lieu of those requirements for the following Month in all other Operating Companies.(a)

Activity Qualification Waiver: an FBO who is Active with 4 Personal and Preferred Customer Case Credits in his/her Home Operating Company will receive an Activity Waiver for the following Month in all other Operating Companies.

Leadership Bonus Qualification Waiver: a Recognized Manager who is Active, or has received an Activity Qualification Waiver, and fulfills the Personal/Non-Manager cc Leadership Bonus requirement in any single Operating Company during the current Month will receive a Leadership Bonus Waiver for the following Month in all other Operating Companies.

Webstore: the official online shopping site located at www.foreverliving.com

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