Compensation Plan. The United States & Canada. January 2013

Transcription

1 Compensation Plan The United States & Canada January 2013

2 Compensation Plan dub nutrition educates, markets and distributes products, services and support in our mission to Unite For One. Unite for One is focused on each individual as they identify, create and sustain a healthy lifestyle. The dub nutrition Marketing Program is founded upon principles of honesty and integrity - supporting our customers, preferred members and distributors with high quality nutritional products, sold through a network of Independent dub Distributors. The following are the rules and regulations that support the dub nutrition Compensation Plan and Qualification Rules Income Earning Opportunities Ranks & Qualification Levels Questions & Answers Definitions Examples Summary 1.

3 Income Earning Opportunities There are 8 ways to earn income with dub nutrition: 1. Retail Sales 2. First Order Bonus 3. Preferred Member Bonus 4. Team Commissions 5. Car Bonus 6. Executive Check Match 7. Triple duble Bonus 8. Loyalty & Leadership Pools 2.

4 1. RETAIL SALES Retail sales allow you to earn income by purchasing dub nutrition products at the wholesale price and then selling them at the retail price. You can also earn Retail Sales commissions from Customers who order directly from your replicated website, and on Customers who order directly through the dub nutrition customer service center under your Distributor ID. As an Active Distributor you receive the difference between the wholesale price and the Customer price as a retail commission. You do not need to be qualified to earn profit from sales made to Customers. Retail Commission is paid weekly. Requirements: active 40 PV 2. FIRST ORDER BONUS (FOB) Distributors earn a one time First Order Bonus of 25% of the PV on any personally enrolled Distributor s initial order. Products purchased by personally enrolled Distributors after the first order are not eligible for a FOB, and will count towards QV and CV for qualification and commissions. Distributors must be active 40 PV at the time the order is placed to earn a First Order Bonus. First Order Bonus is paid weekly. Requirements: active 40 PV 3.

5 3. PREFERRED MEMBER BONUS (PMB) Active Distributors earn 20% of the PV on all personally enrolled Preferred Member purchases. The volume of a Preferred Member order accrues to the PV total of the Distributor, but does not count towards the distributors personal volume qualification. Preferred Member PV spills to the distributors lessor leg and will count towards CV in that leg. The CV of a Preferred Member order is equal to 50% of the order PV. Preferred Member Bonus is paid weekly. Requirements: active 80 PV 4. TEAM COMMISSIONS (TC) Team Commissions are the fundamental building block of the dub nutrition Compensation Plan. As a new Distributor, your focus will be on creating retail Customers and Preferred Members, with the option of building a sales team of other Distributors. The Team Commission portion of our plan is based on a binary structure. Binary means that you will be placed in one of two legs (left or right) in your enroller s organization. You will then be compensated based on successfully building two legs of your own. Your enroller (and anyone else in your upline) may also place people in your organization. To earn Team Commissions, you must be Active 80 PV and Qualified with at least two Active 80 PV distributors; a minimum of one on both your left and right legs. Commissions are earned on your Lesser leg CV. You must accumulate 150 CV in the lesser leg, before the commission will be paid during any given week. Any unpaid CV carries forward to the following week. You must remain active to have CV accumulate. Team Commissions are capped at $10,000 per week. Team Commissions are paid weekly. Requirements: active 80 PV and qualified Distributor or higher 100 PV 80 PV Total CV 350 Greater Leg 120 PV* How to Earn Team Commissions 50 PV YOU 100 PV Personally Sponsored Group Distributor Earn Team Commissions up to 10% 80 PV 80 PV* Total CV 260 Lesser Leg 4.

6 5. CAR BONUS The dub nutrition Car Bonus pays $600 for the lease of an approved dub nutrition luxury car. Cars must not be more than 3 years old at time of purchase or lease. Distributors must provide lease or purchase documents and a photo of themselves with the car to dub nutrition within 30 days of lease or purchase. Distributors must display a dub nutrition window decal (company will provide). A distributor may elect to receive a $300 cash bonus in place of the $600 car lease bonus. Bonus is calculated and paid every 4 weeks. Requirements: active 120 PV and qualified Executive 3 Star Distributor or higher 6. EXECUTIVE CHECK MATCH (ECM) The Executive Check Match program is designed exclusively for our executive sales leaders. This program allows you to earn an ECM on the team commissions paid to Distributors you personally sponsor, the Distributors they personally sponsor, and so on. As your executive rank increases, so does the earning percentage on which you can be paid an ECM. As an Executive, you will match 10% of the Team Commission earned by all distributors in your personally enrolled legs, down to the first Qualified Executive in that leg. As a Presidential, you will match 15% of the Team Commissions earned by all distributors down to the first Qualified Executive, and 5% on all distributors below the Executive in that leg. As an Ambassador, you will match 20% of the Team Commission earned by all distributors down to the first Qualified Executive, and 10% on all distributors below the Executive, in that leg. You will match 5% on all distributors below the first Qualified Presidential, in that leg. You will not match the Team Commission earnings of distributors below a distributor who hold your same Paid As rank. Requirements: active 120 PV and qualified Executive Distributor or higher 5.

7 7. Triple duble (TD) The Triple duble assists dub distributors in building a qualifying sales team. To qualify for the TD, a distributor must create 600 PV in Personally Enrolled Volume (PEV) and personally enroll two Active 80 PV distributors, one on the left and one on the right leg of their binary sales organization. If this happens within the first five weeks of the enrollment date, the distributor earns a "duble" bonus. By supporting and training those two personally enrolled distributors to earn their own duble (within the first five weeks), the distributor earns a duble duble bonus. And finally by supporting and training those two personally enrolled distributors to earn their duble duble, the distributor earns a triple duble bonus. NOTE: A distributor must maintain the initial qualifications of the TD to earn the duble duble and triple duble bonuses and TD matching bonuses. Distributors have a total of fifteen weeks to complete the triple duble process. Once a distributor has earned their personal duble, duble duble or triple duble bonus the distributor will earn a 50% TD Match on all personally enrolled distributors who earn a duble, duble duble or triple duble bonus. The enrolling distributor can only match the TD bonus up to the level that they personally earned. Requirements: active 80 PV, qualified Distributor or higher, with 600 PV in PEV How to Earn a... Duble Duble Duble Triple Duble 1. Be an Active 80 PV Distributor 2. Generate 600 PV of PEV 3. Personally Enroll 1 Active 80 PV member on the Right and Left Leg Help Your Active 80 member earn a Duble Your Active 80 member helps their Active 80 member to earn a Duble 6.

8 8. LOYALTY & LEADERSHIP POOLS LOYALTY POOL dub nutrition has reserved 1% of total company GV for our Loyalty Pool. As an Active and Qualified Distributor, you have the opportunity to share in the dub nutrition Loyalty Pool by meeting and maintaining the following requirements: 1) Distributor must have been Active for three consecutive years, and continue to be Active. 2) Distributor must have purchased a minimum of 7,200 PV during their tenure with dub. 3) Distributor must become Qualified and remain Qualified. The Loyalty Pool is calculated and paid out every four weeks, and is based on 1% of company volume generated in a rolling four week period. If a Distributor is inactive, the time and volume requirements are reset to day 1 and 0 PV, respectively. Requirements: active 80 PV and qualified distributor or higher PRESIDENTIAL LEADERSHIP POOL dub nutrition has reserved 2% of total company GV for our Presidential Leaders. As a qualified President or above, you earn shares in this pool. For each Presidential rank you achieve, the more shares you accrue. The 2% total company GV is paid out every 4 weeks to our Qualified Presidential Executives, based on their earned portion in this pool. Each Presidential Star rank is equal to 1 share of the Presidential Pool. Requirements: active 120 PV and qualified Presidential Distributor AMBASSADOR LEADERSHIP POOL dub nutrition has reserved 2% of total company GV for our Ambassador Leaders. As a qualified Ambassador or above, you earn shares in this pool. For each Ambassador rank you achieve, the more shares you accrue. The 2% total company GV is paid out every 4 weeks to our Qualified Ambassador Executives, based on their earned portion in this pool. Each Ambassador Star rank is equal to 1 share of the Ambassador Pool. Requirements: active 120 PV and qualified Ambassador Distributor As always, we encourage dub nutrition Distributors to direct compensation plan questions to their upline, but welcome all Distributors to submit their Compensation Plan questions to customerservice@dubnutrition.com. 7.

9 Ranks & Qualification Levels 8.

10 Ranks & Qualification Levels PREFERRED MEMBERSHIP has not annual fees. A Preferred Member is a customer, who purchases dub products at wholesale through dubrewards (autoship). DISTRIBUTOR has purchased a Distributorship for $45, with an annual fee of $35, and may purchase product at wholesale and participate in dubrewards. A distributor must maintain minimum PV amounts to qualify for dub bonuses and commissions. DISTRIBUTOR 2 Star is qualified with at least 80 PV in actual PV with a dubrewards order on record, and has a minimum of two personally sponsored and active 80 PV Distributors with one placed on the left binary leg and one placed on the right binary leg. DISTRIBUTOR 3 Star is qualified with at least 80 PV in actual PV with a and active 80 Distributors with one placed on the left binary leg and one placed on the right binary leg, and has 500 QV in lesser leg volume during a one week period within four rolling weeks. DISTRIBUTOR 4 Star is qualified with at least 80 PV in actual PV with a and active 80 PV Distributors with one placed on the left binary leg and one placed on the right binary leg, and has 1000 QV in lesser leg volume during a one week period, within four rolling weeks. EXECUTIVE is qualified with at least 120 PV in actual PV with a dubrewards order on record, has a minimum of two personally sponsored and active 80 PV Distributors with one placed on the left binary leg and one placed on the right binary leg, and has 2500 QV in lesser leg volume during a one week period, within four rolling weeks. Receives a one time $250 Rank Advancement Bonus. EXECUTIVE 2 STAR is qualified with at least 120 PV in actual PV with a and active 80 PV Distributors with one placed on the left binary leg and one placed on the right binary leg, and has 3000 QV in lesser leg volume for two weeks, within four rolling weeks. EXECUTIVE 3 STAR is qualified with at least 120 PV in actual PV with a and active 80 PV Distributors with one placed on the left binary leg and one placed on the right binary leg, and has 7,500 QV in lesser leg volume for two weeks, within four rolling weeks. EXECUTIVE 4 STAR is qualified with at least 80 PV in actual PV with a and active 80 PV Distributors with one placed on the left binary leg and one placed on the right binary leg, and has 12,500 QV in lesser leg volume for three weeks, within four rolling weeks. PRESIDENTIAL is qualified with at least 120 PV in actual PV with a dubrewards order on record, has a minimum of two personally sponsored and active 80 PV Distributors with one placed on the left binary leg and one placed on the right binary leg, has 25,000 QV in lesser leg volume for three weeks, and has one personally enrolled leg with at least one Executive 3 Star Distributor. A distributor who reaches the rank of President receives a one time $2500 Rank Advancement Bonus. PRESIDENTIAL 2 Star is qualified with at least 120 PV in actual PV with a and active 80 PV Distributors with one placed on the left binary leg and one placed on the right binary leg, has 50,000 QV in lesser leg volume for three weeks, and has two personally enrolled legs with at least one Executive 3 Star Distributor. PRESIDENTIAL 3 Star is qualified with at least 120 PV in actual PV with a and active 80 PV Distributors with one placed on the left binary leg and one placed on the right binary leg, has 75,000 QV in lesser leg volume for four weeks, and has three personally enrolled legs with at least one Executive 3 Star Distributor. PRESIDENTIAL 4 Star is qualified with at least 120 PV in actual PV with a and active 80 PV Distributors with one placed on the left binary leg and one placed on the right binary leg, has 125,000 QV in lesser leg volume for four weeks, and has four personally enrolled legs with at least one Executive 3 Star Distributor. 9.

11 Ranks & Qualification Levels AMBASSADOR is qualified with at least 120 PV in actual PV with a and active 80 PV Distributors with one placed on the left binary leg and one placed on the right binary leg, has 200,000 QV in lesser leg volume for four weeks, and has one personally enrolled leg with at least one Presidential 3 Star Distributor. A distributor who reaches the rank of Ambassador receives a dub Luxury Car as a Rank Advancement Bonus. AMBASSADOR 2 Star is qualified with at least 120 PV in actual PV with a and active 80 PV Distributors with one placed on the left binary leg and one placed on the right binary leg, has 300,000 QV in lesser leg volume for four weeks, and has two personally enrolled legs with at least one Presidential 3 Star Distributor. AMBASSADOR 3 Star is qualified with at least 120 PV in actual PV with a and active 80 PV Distributors with one placed on the left binary leg and one placed on the right binary leg, has 500,000 QV in lesser leg volume for four weeks, and has three personally enrolled legs with at least one Presidential 3 Star Distributor. AMBASSADOR 4 Star is qualified with at least 120 PV in actual PV with a and active 80 PV Distributors with one placed on the left binary leg and one placed on the right binary leg, has 750,000 QV in lesser leg volume for four weeks, and has four personally enrolled legs with at least one Presidential 3 Star Distributor. 10.

12 11. Questions & Answers

13 Questions & Answers Q. Why am I considered active for five weeks? A. Because we pay commissions weekly rather than monthly (except for Pools & Car Allowances), our definition of Active is a rolling five week period where each commission week runs from 12:00 am MST Monday through 11:59 pm MST Sunday. Q. If I go inactive what happens? A. Once you become inactive the accumulation GV stops and any existing GV will be reset to 0. However, once you reactivate your position by personally purchasing your minimum PV, you begin to accumulate GV as products are sold in your downline organization. Your GV will be reset to zero if you are suspended or terminated, and your dubrewards will be reset to 10%, though you won t lose any accrued points (See dub nutrition Terms and Conditions for additional information on active, suspended, terminated distributor status) Q. Once I ve earned commissions, when can I expect to be paid? A. The commission week ends Sunday at 11:59 pm MST. Any earned commissions will be paid out the second Friday after the end of a commission period. To collect your commissions you must sign in to your Virtual Office and click the Pay Quicker button. Once this has been selected an will be sent to you for further instructions. Please keep an updated on file with dub nutrition. Q. When Team Commissions are paid, what volume is deducted from my business center? A. Any volume on your left and right legs that was used to earn Team Commissions will be deducted. Any unpaid volume will carry forward as long as you remain active. Q. What is dubrewards? A. dubrewards is a system in which you can redeem the Reward Points that were generated through your dubrewards Order (autoship) every five weeks, holidng Reset21 Meetings, winning BBD Challenges, advancing ranks, and having your story featured in dub nutrition publications. Weeks 1-15 you earn 10% off of every product order, weeks you earn 15%, weeks you earn 20%, weeks you earn 25%, and weeks and beyond you earn 30%. You can put your dubrewards order on hold, change it, or cancel it at any time by sending an to customerservice@dubnutrition.com or logging into your Virtual Office. Q. How do I generate PV? A. PV is generated through your own personal purchases. You will also generate PV through Preferred Member purchases and retail customer purchases. Q. What does it mean when a bonus structure compresses up? A. When a bonus structure compresses up terminate/suspended generations are excluded from the personal enrollment tree used to calculate commissions. Q. If I become unqualified what happens? A. Once you become unqualified you continue to accrue GV on both legs. However, only accrued GV on your strong leg can be used to qualify for rank advancements. 12.

14 13. Definitions

15 Definitions A. dub nutrition PRODUCTS are products, services and other related items, which may be introduced, from time to time by dub nutrition for purchase and resale by its Distributors. B. A DISTRIBUTOR is a person authorized to purchase dub products at wholesale and sell these products at retail, earn commissions, and to give guidance and support to Retail Customers and Preferred Members. The fee for becoming a dub Distributor is $45. C. The PREFERRED MEMBER PROGRAM allows dub nutrition Distributors to share dub nutrition products with others without signing these individuals up as a dub nutrition Distributor. Preferred Members are positioned ONLY in the Enroller Tree and are assigned an Identification Number that links them to the distributor that personally enrolled them. Preferred Members may purchase dub nutrition products at the wholesale price only through dubrewards (auto ship) or at anytime through a standard retail order, at retail price, placed in a dub shopping cart or by calling dub nutrition directly. dubrewards allows Preferred Members to purchase any quantity of dub products at wholesale, to be shipped to their home once every month on a designated day, and earn rebate points on the value of their monthly dubrewards order PV. dubrewards Points can be redeemed for dub products or dub gear and swag available in the dubreward Catalog. Preferred Members are not authorized to sell dub nutrition products. Preferred Members are not able to sign-up other Preferred Members. A Preferred Member can refer others who would like to become a Preferred Member, to a dub nutrition Distributor who can enroll them into the Preferred Member program. When a Distributor enrolls an individual as a Preferred Member, the Distributor, if qualified to receive the Preferred Member bonus, will be paid weekly on any volume accrued by that Preferred Member. Preferred Member purchases are included in the Personal Volume (PV) of a Distributor. D. The RECOMMENDED RETAIL PRICE of a product is the price at which dub nutrition recommends the product be sold to retail customers by dub nutrition Distributors. E. The WHOLESALE PRICE of a product is the price at which dub nutrition sells the product to its Distributors and Preferred Members. F. An ENROLLER DOWNLINE refers to all Distributors and Preferred Members sponsored either directly or indirectly by a given Distributor. For example, if A sponsors B, who sponsors C, who sponsors D, who sponsors E, then B, C, D, and E are all in A s downline. G. A GROUP consists of all downline Distributors below a position in the Binary Tree. H. A GENERATION LEVEL represents the number of steps in the downline between a Distributor and those he/she has directly or indirectly sponsored. For example, if A sponsors B, who sponsors C, who sponsors D, who sponsors E, then B is first generation/level to A, C is second generation to A, D is third, and E is fourth. I. PERSONAL VOLUME (PV) equals the accumulated volume of all products personally purchased by a Distributor in any rolling 5 week period for resale to Customers or for personal use. J. GROUP VOLUME (GV) includes all volume accrued in either the lesser or stronger leg of a Distributor organization. K. QUALIFYING VOLUME (QV) includes all Group Volume. Included in this is activation volume, dubrewards (Auto-Ship) volume, and volume for any additional product purchased by dub Distributors or Preferred Members. Qualifying Volume is used to determine rank. 14.

16 Definitions L. COMMISSION VOLUME (CV) is the total commission value (CV) of purchases of dub nutrition products within a given weekly period by all Distributors and Preferred Members in a downline. CV is a subset of Group Volume and may be less than Group Volume, based on order type. Team Commission Bonuses are calculated based on the lesser Team Leg CV. M. A BUSINESS CENTER (BC) is a position in the Compensation Plan where the left side and right side GV is accumulated for the purpose of calculating weekly and monthly bonuses. N. LEG refers to the right binary side or left binary side of your business center. O. STRONG LEG refers to the Team Leg with the greater sales volume. P. LESSER LEG refers to the Team Leg with the smaller sales volume. Q. POINT VALUE is the amount set by dub nutrition on each product for use in the calculation of bonuses. For example, the suggested wholesale price on a bottle of product may be $45, while the Point Value is 40 PV. Point Value may vary from product to product and by order type. Retail, First Order and Preferred Member Bonuses are calculated on Point Value. dub nutrition may, at its own discretion, change the Point Value figures for various products from time to time. R. An ACHIEVEMENT/RANK LEVEL is a Compensation Plan level at which a dub nutrition Distributor qualifies for certain Compensation Plan Bonuses. Distributors qualify for a particular Achievement Level based on the Qualifying Volume in their lesser volume Leg. The various dub nutrition Compensation Plan Levels are available in this document. S. The MINIMUM ACTIVITY REQUIREMENT is the Personal Volume a Distributor must achieve to receive Compensation Plan Bonuses. To be considered active, a Distributor must purchase a minimum of 40 PV in a rolling five week period for personal consumption and/or sale at retail. For additional information on minimum volume requirements based on an Achievement level please refer to dub nutrition s Rank Qualifications. T. INACTIVE status occurs when your minimum Personal Volume Requirements are not met, during a rolling five week period. If you are inactive - Group Volume will not accumulate, and you are not qualified to earn bonuses or commissions. However, once you reactivate with a personal product purchase of at least 40 PV you will begin to accumulate Group Volume as products are purchased by you and your downline organization. (See dub nutrition Terms and Conditions for additional information on active, suspended, terminated distributor status) U. PAID-AS RANK is the rank for which you have earned and maintained all necessary requirements during the current period. V. DUB TREE is the binary, or placement, side of the Compensation Plan with width limited to two placements. W. PERSONAL ENROLLMENT TREE is the sponsoring side of the Compensation Plan with unlimited width. Preferred members and distributors are placed in the enrollment tree of the distributor who personally enrolled them. X. A COMMISSION WEEK is a seven day period that runs from 12:00 am Monday through 11:59 pm Sunday. Commissions are paid on the second Friday after the close of the commission week. 15.

17 Definitions Y. CARRY FORWARD VOLUME consists of all volume that is not paid out on during a commission week. This volume is banked for up to 52 weeks, until either it is paid out on or until a Distributor is suspended. Z. DUBREWARDS (auto ship or auto delivery) is an optional convenience program that allows Distributors and Preferred Members to create a monthly standing order with dub nutrition. Products are processed on a selected date at wholesale. AA. A PERSONAL ENROLLER is the Distributor who personally enrolls a new Distributor or Preferred Member. BB. The BINARY PLACEMENT/SPONSOR is the Distributor directly above you in the binary. This Distributor may or may not be your Personal Enroller. CC. POOL COMMISSIONS are paid out every 4 weeks in conjunction with the weekly commission schedule and are based on the previous 4 weeks of volume production. DD. An AR LEDGER is a virtual bank where commissions are stored until they are paid. EE. A RETAIL CUSTOMER is someone who a Distributor sells product to at the retail price. 16.

18 17. Examples

19 Examples I. PURCHASES FROM dub nutrition - All dub nutrition Distributors have the right to purchase dub products from dub nutrition for personal consumption and retail sale to the public. Distributors are permitted to purchase as little or as much of the dub nutrition products as they desire, as long as they comply with the retail sales obligations outlined in the Policies and Procedures and this Compensation Plan Manual. When purchasing product directly from dub nutrition, the Distributor shall pay for the cost of the shipping and handling as determined by the weight and volume of the order. These shipping and handling costs shall be set and published by dub nutrition, and may be changed from time to time. II. RETAIL SALES OBLIGATION The dub nutrition program is based on sales at retail. Therefore, each Distributor is obligated to purchase dub nutrition products only for sale at retail or for personal consumption, and is obligated to make continuing substantial efforts to make retail sales. To assure that Distributor purchases do correspond to the Distributors retail sales, each Distributor shall certify with each order of dub nutrition products that a) the amount of the order represents the Distributor s reasonably expected requirements for retail sales and personal consumption for the period covered by that order, b) he/she is not stockpiling unsold dub nutrition products for the purpose of qualifying for bonuses, and c) at least 70% of the Distributor s previous purchases resulted in retail sales. III. COMPENSATION PLAN Each dub nutrition Distributor may earn compensation by selling dub nutrition products to retail customers. The Distributors profit shall equal the difference between the cost of his/her purchases at wholesale and the retail price at which the product is sold. Distributors may also earn compensation by obtaining bonuses from dub nutrition based upon their sales volume and the sales volume of their downline Distributors. dub Distributors shall not be eligible for bonuses based on the sales of Distributors they personally sponsor unless they engage in significant efforts to supervise both directly and indirectly sponsored Distributors, and provide aid and instruction in their selling efforts. dub nutrition guarantees up to 50% payout of commissionable volume. IV. ELIGIBILITY FOR BONUSES Distributors desiring to receive bonuses shall undertake their best efforts to maximize both the retail sales and sponsoring by the Distributors and Preferred Members in their downline. Each Executive shall continue to make reasonable efforts to aid the sales and sponsoring of all Distributors in his/her downline by providing advice, training, and morale building efforts in accordance with the provisions of the Policies and Procedures. In particular, each Executive shall make reasonable efforts to help Distributors in his/her downline achieve the Executive level. The success of such efforts to aid the sales and sponsoring of others is key to receiving Executive level bonuses under the dub nutrition compensation plan. It is inconsistent with this rule to sponsor Independent dub nutrition Distributors into other network marketing ventures unless said Distributors are first generation Distributors to the sponsor. It is also inconsistent with the rule to make derogatory remarks about dub nutrition as part of these solicitations or for any other reason. 18.

20 Examples V. PAYMENT OF BONUSES dub nutrition shall make its best effort to pay Distributor bonuses for purchases in a given weekly period within a reasonable time after the close of such period. Under normal circumstances, the dub nutrition commission payments will be posted weekly (unless otherwise noted in the description of bonus plan, eg: car bonus, pool bonus), the second Friday following the close of a bonus period. The payment of bonuses shall in all cases be conditioned upon prompt receipt by dub nutrition of orders from Distributors made online. dub nutrition may, at its reasonable discretion, make the relevant calculations regarding bonuses and compensation plan levels as of a date approximating but not exactly equaling the end of a weekly period if reasonably necessary for dub nutrition business purposes (such as major holidays that may occur on a commission pay day). VI. REPRESENTATIONS TO OTHER Distributors AND PROSPECTIVE Distributors dub nutrition Distributors shall honestly and fairly describe the dub nutrition Compensation Plan in all their discussions with other Distributors or potential Distributors. This obligation of a fair and complete description shall include, without limitation, the following: A. Distributors shall not misstate any significant or material fact about the dub nutrition Compensation Plan, and shall not omit any significant or material fact about the dub nutrition Compensation Plan. Distributors shall provide each potential Distributor with a copy of this Compensation Plan prior to giving such person a Distributor application. B. Distributors shall clearly state that the foundation of the dub nutrition Compensation Plan is the retail sale of dub nutrition products to consumers and that dub Distributors cannot expect to be successful merely by sponsoring other Distributors without regard to retail sales. C. Distributors shall not state that any level of profits or bonuses is guaranteed or certain for dub nutrition Distributors. Distributors shall clearly state that dub nutrition Distributors can expect to be successful only through hard work and substantial efforts. D. Distributors shall not distort or misrepresent any feature of the dub nutrition Compensation Plan and shall not make any statements about the quality or benefits of the dub nutrition products except to the extent that such statements are made in dub nutrition written material describing the product. E. Distributors shall not guarantee any specific income, profit, and or success. F. Distributors shall not state or imply that the dub nutrition Compensation Plan has been approved by any governmental agency business group. VII. REPRESENTATIONS TO CONSUMERS Distributors shall fairly and accurately describe the dub nutrition products in their sales and attempted sales to consumers and shall not distort or misrepresent any facts when discussing the dub nutrition products with consumers. This obligation of fair and complete discussion shall include, without limitation, the following: A. Distributors shall not describe the dub nutrition products except as permitted in the materials published by dub nutrition describing the product. B. Distributors shall not attempt to deceive or confuse any consumer regarding the nature and quality of dub nutrition products, or the price of the dub nutrition products. VIII. REVISIONS dub nutrition may from time to time revise this Compensation Plan and Manual as is reasonably necessary for the successful operation of the dub nutrition business. 19.

21 Summary 20.

22 Summary Bonus How It Works How To Earn dub Rewards Direct First Order Preferred Member Team Commission Executive Check Match Earn 10% to 30% on the PV of your personal orders, to spend on rewards from the catalog Sell dub products to friends and neighbors and keep the difference Earn 25% on the first order PV of personally enrolled distributors Earn 20% on the PV of all personally enrolled Preferred Members orders Earn 10% on the CV in your lessor leg Earn an Executive Check Match on the Team Commission earnings of all distributors in your personally enrolled legs Join dub as a Preferred Member or Distributor and place a minimum dubreward auto ship order of 40 PV, every 4 weeks. Weeks1-15=10%, 16-30=15%, 31-45=20%, 46-60=25%, and above=30% Active dub Distributor Active 40PV Distributor on dubrewards Active 80PV Distributor on dubrewards, Preferred Member must be on dubrewards (autoship). Preferred Member volume is credited to your lessor leg at 50% of the PM order PV. Active 80PV Distributor on dubrewards, with at least two Active 80 PV Distributor one on your left and one on your right team leg. Qualified Executive earns 10%, Qualified Presidential earns 15% and Qualified Ambassador earns 20%. Triple duble Rank Advancement Car Bonus Earn up to $650 in bonuses as you build your team Active 80PV Distributor, with 600PEV in Personally Enrolled Distributors or Preferred Members in your first level. Earn $250, $2,500 and a dub luxury car Qualify as an Executive ($250) a Presidential ($2500) and as an Ambassador (Luxury Car) for 2 consecutive periods. Earn $300 in cash or $600 in lease payment Qualify as an Executive 3 Star or higher every 4 weeks. Loyalty Pool Earn a share of Loyalty Pool, which is 1% of company GV Active Distributor for 36 continuous months, with a minimum of 7200 in PV. Presidential Pool Earn a share of the Presidential Pool, which is 2% of company GV Qualified Presidential 1,2,3 or 4 star. Each star earns 1 share of the pool. Ambassador Pool Earn a share of the Ambassador Pool, which is 2% of company GV Qualified Ambassador 1,2,3 or 4 star. Each star earns 1 share of the pool US-CA dub nutrition, LLC All rights reserved. Effective US/CAN only. January 2013; rev 01/13

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