Chapter 8: Management Performance Compensation Plan (MPCP)

SEC. 1 ORGANISATIONAL STRUCTURE

Each Business Development Centre (BDC) has two sides. Each side is a sales and distribution organisation or network structure in the Market Australia UnFranchise^® Business Development System.

Business Development Centre Defined: A Business Development Centre is an operational establishment set up within Market Australia’s computerised organisation tracking system. Each organisation is based upon the assignment of the UnFranchise Owner’s identification number and the BDC’s three-digit extension number (e.g., 001, 002, 003, 010, etc.).
Additional Business Development Centres: Additional BDCs are established either on the left or right side of a previously established BDC, according to the policies found in Section 13 of this Chapter.

SEC. 2 INITIAL PARTICIPATION REQUIREMENTS

To participate in Market Australia’s MPCP, an individual (with the assistance of his/her sponsor) must complete and submit the UnFranchise Owner Application and Agreement (the “IUA&A). The IUA&A may be submitted to Market Australia by mail (faxes are unacceptable) for entry into the corporate computer database or by completing the registration process online, thereby establishing one’s BDC(s). Note: Sponsors should register new UnFranchise Owners either by mail or online, but not both, as this could lead to improper entry of the new UnFranchise Owner in the Market Australia computer database.

Sales Representative: Individuals who fail to submit the subscription fee enter Market Australia 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).
UnFranchise Owner: Individuals must select UnFranchise Owner on the “Entry Classification” and submit the subscription fee in order to participate in the MPCP and earn commissions and management bonuses.
1. An UnFranchise Owner must have attended a Market Australia-sponsored New UnFranchise Owner Training (NUOT) within the “NUOT Grace Period” in order to (1) count as being sponsored and (2) obtain the sponsorship rights towards/for activation purposes in the MPCP.
2. If an UnFranchise Owner does not complete the NUOT within the “NUOT Grace Period,” the UnFranchise Owner’s sponsor will lose their sponsorship rights for this UnFranchise Owner. The sponsorship rights for this UnFranchise Owner of the UnFranchise Owner’s sponsor may be reactivated once this UnFranchise Owner completes the NUOT at a later date. The sponsorship takes effect on the reactivation date.
3. New UnFranchise Owners may sponsor other new UnFranchise Owners during their “NUOT Grace Period.” This “NUOT Grace Period” shall be defined as 28 calendar days after the Friday following the payment date of the Joining Fee and the Subscription Fee for the first year. If the sponsoring new UnFranchise Owner does not complete the corporate-sponsored NUOT within the 28 days allowed, sponsorship rights towards/for activation purposes and rights to commission earned will be forever forfeited.

SEC. 3 A PERSON MAY BE INVOLVED IN ONE UNFRANCHISE BUSINESS ONLY

A person may be involved in only one Market Australia UnFranchise Business. If a person is already involved in an UnFranchise Business as an owner, officer, director, shareholder, partner, member, manager, beneficiary, or trustee, or is the spouse of an UnFranchise Owner, or if a person otherwise plays a role in the operation of an UnFranchise Business, then that person may not be involved in any such capacity for another UnFranchise Business, regardless of whether their name appears in the UnFranchise Business’s official documents or is associated with the UnFranchise Business in any formal way. The use of any device, mechanism or arrangement such as trade names, DBAs, assumed names, a spouse or family member’s name, federal identification numbers, fraudulent Social Security or Social Insurance numbers, fabricated Business Development Centers (collectively “Alter Egos”), is unethical and strictly prohibited.

SEC. 4 PLACEMENT OF BUSINESS DEVELOPMENT CENTRES

Business Development Centres of new UnFranchise Owners are placed at the discretion of the sponsoring UnFranchise Owner. Existing UnFranchise Owners under which these new BDCs are being placed should be made knowledgeable of their placement within their organisation. Placement of BDCs of new UnFranchise Owners is specified on the mailed UnFranchise Owner Application and Agreement or during the online registration process by the new UnFranchise Owner’s sponsor.

New Business Development Centres: New BDCs may be established only in available locations that were not previously occupied or linked. All Sales Representatives and UnFranchise Owners start with three (3) BDCs when they establish their UnFranchise Business. UnFranchise Owners will also start with one (1) International Reentry Center (IRC) (Please see the section entitled Global Unification for details).
Incorrectly Placed: Improper placement (attempting to place new UnFranchise Owners in positions already occupied in the downline), incomplete placement information, or failure to designate placement information on the IUA&A for newly sponsored UnFranchise Owners 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 “Leg” column of the UnFranchise Owner Network Report on the UnFranchise Management System. If there isn’t an “L” or “R” in the UnFranchise® Owner’s “Leg” column for BDC-001, then the UnFranchise Owner’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. The linkage correction form may only be signed by the sponsor or the unlinked UnFranchise Owner.

SEC. 5 INITIAL QUALIFICATION REQUIREMENT

Qualifying a BDC will permit accrual of Group Business Volume generated by UnFranchise Owners 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.

Personal Business Volume Created: Both UnFranchise Owners and Sales Representatives create Personal Business Volume by ordering products at UnFranchise Cost for retail sale to the end consumer and/or personal consumption.
Qualification: An UnFranchise Owner’s BDCs shall be considered “Qualified” in Market Australia’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; and 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 an UnFranchise Owner by submitting the subscription fee at a later date. All Personal Business Volume created by Sales Representatives will be recognised as Group Business Volume for all qualified UnFranchise Owners 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 an UnFranchise Owner by submitting the subscription fee.
3. Personal Business Volume created by an UnFranchise Owner will count towards qualifying their BDC(s) as assigned on the product order form.
4. The Personal Business Volume created by UnFranchise Owners will be recognised as Group Business Volume for all qualified UnFranchise Owners in the creating UnFranchise Owner’s upline.
Qualification Date (Q-date): The date an UnFranchise Owner’s initial BDC becomes qualified, the UnFranchise Owner will be assigned a Qualification Date (Q-date). The Q-date is the most critical element in exercising the UnFranchise Owner’s option to accrue Group Business Volume from month to month through the entire MPCP compensation cycle.
1. An UnFranchise Owner’s Q-date is the Friday of the week in which the UnFranchise Owner’s initial BDC accumulated 200 Personal Business Volume credit for product orders assigned to that centre, if the BDC is linked properly and the UnFranchise Owner 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 an UnFranchise Owner will receive a Q-date of the Friday of the week in which the subscription fee is received by Market Australia and entered into the corporate database, if the Sales Representative’s BDC is linked properly.
3. An UnFranchise Owner’s Q-date never changes, unless the UnFranchise Owner does not submit the Annual Renewal fee. (See Annual Renewal.)
4. An UnFranchise Owner’s Q-date may be obtained from Market Australia’s UnFranchise 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 UnFranchise Owner met all three criteria for qualification and is not considered established until this time.
Q-date Periods Defined:
1. Weekly Commission Cycle: All commission pay cycles are weekly and begin Saturday and end on Friday.
2. Monthly Q-Date Period:
  1. If the original Q-date falls exactly on a Friday in a given month, then that monthly Q-date period ends on that Friday. E.g., if the original Q-date is 13 January 2018, then the monthly Q-date for July, of 2018 will be 13 July 2018.
  2. 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. E.g., if the original Q-date is 13 January 2018, then the monthly Q-date for August of 2018 will be 13 August 2018.
  3. If the original Q-date falls on the 29th, 30th, or 31st 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. E.g., if the original Q-date is 31 August 2018, then the monthly Q-date for November of 2018 will be 30 November 2018. However, 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 31 August 2018, the monthly Q-date for September of 2018 will be 05 October 2018.)
3. Quarter (Three-Q-date Period or Three-Start-Date Period): Market Australia’s quarterly periods are based on UnFranchise® Owners’ initial Q-dates or Sales Representatives’ and unqualified UnFranchise Owners’ Start Dates. A quarter may also be referred to as a three-Q-date period, or a three-Start-Date period, because the Market Australia quarter is comprised of three consecutive monthly Q-date periods, or in the case of a Sales Representative or an unqualified UnFranchise Owner, three consecutive monthly periods based on the Start Date. For example, if the initial Q-date is 12 January 2018, then the first quarter (or three-Q-date period) ends 13 April 2018. The second quarter would begin 14 April 2018, and end 13 July 2018.
Unlinked Business Development Centre: All assigned Business Volume to unlinked BDCs shall also be unlinked. The “qualifying” volume for a BDC will not result in this centre receiving a Q-date until linkage has been corrected, because UnFranchise Owners cannot accrue any Group Business Volume until they have met all three criteria for “qualification.” Upon proper linkage of the unlinked UnFranchise Owner, 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 UnFranchise Owners until linkage has been properly corrected. Once the placement is corrected, Group Business Volume will begin to flow and accrue; however, some UnFranchise Owners upline may no longer be able to count the relinked Business Volume for commissions, if they have earned a commission for reaching the 5,000/5,000 GBV compensation criteria in the meantime.
1. If the unlinked UnFranchise Owner (UnFranchise Owner A) is unlinked because of an improper linkage situation only, then upon being linked correctly UnFranchise Owner A will receive an initial Q-date (assuming all requirements for being qualified are met) of the Friday of the week for which Market Australia is paying commissions at the time of proper linkage (two Fridays previous).
  Note: This does not apply to the scenario in which the UnFranchise Owner to whom UnFranchise Owner A is linked (UnFranchise Owner B) did not exist in Market Australia’s computer database until a later commission week than UnFranchise Owner A (see below).
2. If the unlinked UnFranchise Owner (UnFranchise Owner A) is unlinked temporarily because the UnFranchise Owner to whom UnFranchise Owner A was intended to be linked (UnFranchise Owner B) did not exist in Market Australia’s database at the time UnFranchise Owner A was entered into the database, and UnFranchise Owner B is entered into the computer database in a subsequent commission week than UnFranchise Owner A, then UnFranchise Owner A will receive an initial Q-date (assuming all requirements for being qualified are met) of the Friday of the week in which UnFranchise Owner B was entered into the computer database (assuming UnFranchise Owner B is linked properly).

SEC. 6 MINIMUM ACTIVITY REQUIREMENTS

The following Minimum Activity Requirements shall apply for the respective status and/or UnFranchise 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 and an associated retail profit or ongoing BV from an initial sale having a retail profit where the respective UnFranchise ID number is the paying ID number or the purchasing customer is a registered PC of the respective UnFranchise Owner/Sales Representative.

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

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

Sales Representatives and Unqualified UnFranchise Owners (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 placed through the UnFranchise Business Account or fulfilled by their UnFranchise AutoShip totaling a minimum of 150 PBV in activity assigned to their personal BDC-001s (their UnFranchise ID) each quarter (Three-Start-Date Period) based on their Start Date.
2. Sales Documentation: An UnFranchise Owner Sales Report (Form 1000) must be submitted to Market Australia each quarter, accompanied by a minimum of two retail sales receipts evidencing sales during the quarter totaling a minimum of AUD$250.00. Each Sales Representative or unqualified UnFranchise Owner must personally make the retail sales documented on the Form 1000 to their registered Preferred Customer(s). Sales to Preferred Customers who are also UnFranchise Owners or Sales Representatives do not qualify for this purpose and is strictly prohibited
  1. No more than AUD$75.00 of products personally used/consumed by the respective Sales Representative’s or Unqualified UnFranchise Owner’s household may be used as part of the AUD$250.00 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 Australia MPCP is of vital importance. The Sales Representative or Unqualified UnFranchise Owner is ultimately responsible to ensure the validity of the sales documentation.
  2. For Sales Representatives and Unqualified UnFranchise Owners, the Form 1000 is intended to automatically populate with qualifying receipts and automatically submit to Market Australia to meet this requirement for the BDC-001 only, from sales information recorded by the Sales Representative or Unqualified UnFranchise Owner when a manual receipt is created. All manually entered sales receipts must be personally completed and submitted by the Sales Representative or Unqualified UnFranchise Owner.
  3. 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.
  4. Only sales receipts from products sold in the Sales Representative’s or Unqualified UnFranchise Owner’s “Home Region” are considered valid receipts.
  5. Market Australia 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: Sales Representatives and Unqualified UnFranchise Owners must complete and submit an Annual Renewal Form (Form 1052) in accordance with the renewal procedure. (See Annual Renewal.)
  1. Failure to submit the Annual Renewal Form will result in PBV and PIBV being purged (erased to 0), their access to the UnFranchise® Business Account (“Back Office”) denied, and continued authorisation to sell and represent Market Australia-branded products terminated.
  2. For Unqualified UnFranchise Owners who submit the Annual Renewal Form without the renewal fee, their UnFranchise Owner status will be changed to Sales Representative. Their accumulated PBV and PIBV will not be purged (erased to 0).
Qualified UnFranchise Owners (Individuals electing to earn commissions/bonuses through the MPCP).
1. Sales Activity: Must have product orders placed through the UnFranchise Business Account or fulfilled by their UnFranchise AutoShip totaling a minimum of 150 BV in activity assigned to any of their personal BDC-001s (their UnFranchise ID) each quarter (Three-Q-Date Period) based on their Q-Date.
  1. First Three-Q-Date Period (First-Quarter Grace Period): Must have product orders totaling a minimum of 50 BV in addition to the qualifying order(s) assigned to the respective UnFranchise Owner’s BDC-001 within (i.e., prior to the end of) their first Three-Q-Date Period.
    1. 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 UnFranchise Owner must have product orders totaling a minimum of 150 BV in activity assigned to their personal BDC-001 (their UnFranchise ID) within (i.e., prior to the end of) their first Three-Q-Date Period.
2. Sales Documentation: An UnFranchise Owner Sales Report (Form 1000) must be submitted to Market Australia each quarter, accompanied by a minimum of two retail sales receipts evidencing sales during the quarter totaling a minimum of AUD$250.00. Each UnFranchise Owner must personally make the retail sales documented on the Form 1000, to their registered Preferred Customer(s). Sales to Preferred Customers who are also UnFranchise Owners or Sales Representatives do not qualify for this purpose and are strictly prohibited.
3. Contractual Relationship: An UnFranchise Owner must complete and submit an Annual Renewal Form (Form 1052) and pay a renewal fee in accordance with the renewal procedure. (See Annual Renewal)
4. Requalification:
  1. If a qualified BDC purges for any reason, any BDC on which the UnFranchise® Owner 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 (GBV) or Group Internet Business Volume (GIBV) until it has been requalified. The original Q-date received shall stay in effect, except for purges due to non-renewal. (See Annual Renewal policy).
  2. If an UnFranchise Owner 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

UnFranchise Owners and Sales Representatives who have been inactive for 270 calendar days CANNOT retain their original/previous BDC position/placement within the organisation. An UnFranchise Owner or Sales Representative is considered inactive from the date of the last purge for failure to meet the Minimum Activity Requirements (see Minimum Activity Requirements). The 270-day counter will not restart unless an UnFranchise Owner or Sales Representative places a minimum of 50 PBV in their BDC-001 within a subsequent quarter, where the UnFranchise Owner is the paying ID. If an UnFranchise Owner or Sales Representative purges due to non-renewal, the 270-day counter will not be reset unless a Late Renewal is completed and filed with the company and the UnFranchise Owner or Sales Representative places a minimum of 50 PBV in their BDC-001 within a subsequent quarter, where the UnFranchise Owner is the paying ID. Submission of Form 1000 Form or Late Renewal Application by itself does not constitute activity.

UnFranchise Owners/Sales Representatives Inactive ≥ 270 Days but < 1,000 Days Reapplying Same Line: UnFranchise Owners and 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 an UnFranchise Owner again in the same line of sponsorship as their previous UnFranchise Business, may go through the online UnFranchise Registration and submit an UnFranchise Owner Application and Agreement (IUA&A) for placement at the bottom of the genealogy, or submit a standard hardcopy paper IUA&A. Such IUA&A must be in the same name and under the same tax identification number as their previous UnFranchise Business. The same line of sponsorship means any placement in the genealogy under their previous BDC’s.
UnFranchise Owners/Sales Representatives inactive ≥ 270 days but < 1,000 days reapplying different line or different name/ID#:
1. All UnFranchise Owners and Sales Representatives who have been inactive for 270 days, but less than 1,000 days, and who want to become an UnFranchise Owner again under a different line of sponsorship, or under a different name or a different tax identification number, must submit a notarised letter, signed by the reapplying UnFranchise Owner, 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 02 4648 0025.
2. In the sole discretion of Market Australia (or its subsidiaries/affiliated family of international companies) an application of a former UnFranchise Owner or 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):
  1. The sponsor/upline didn’t fulfill their management responsibilities as defined in the UnFranchise Manual.
  2. A legitimate grievance is filed against the sponsor/upline for activity that undermined the reapplying UnFranchise Owner’s business.
  3. The company determines that there are extenuating circumstances that justify placement in a new line of sponsorship.
  4. It is determined that the Save An UnFranchise Owner (SAD) program was utilized, and there were no satisfactory attempts of support made by the upline.
UnFranchise Owners/Sales Representatives Inactive ≥ 1,000 days: UnFranchise® Owners and Sales Representatives who have been inactive for 1,000 days or more may go through the online UnFranchise Registration or submit a standard hardcopy paper IUA&A for placement in their previous line of sponsorship, or in any new line of sponsorship, as long as the UnFranchise Owner/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).
Unethical Activity: If the company determines that an UnFranchise Owner has acted unethically by reapplying under a different line of sponsorship, the UnFranchise Owner acting unethically will be subject to having their IUA&A terminated immediately. The organisation receiving credit from this unethical reapplication will have all BV or IBV resulting from this activity removed, and all commissions generated from this BV or IBV will be reversed (see Commission Reversal). UnFranchise Owners placed under the Unauthorised UnFranchise Owner will be moved to the original line of sponsorship OR to an appropriate placement determined at the sole discretion of the Market Australia. BDCs unrelated to the Unauthorised UnFranchise Owner will remain in their current positions. If it is found that any other active UnFranchise Owner participated in or encouraged this unethical activity, the Corrective Action Procedure will be initiated with respect to that UnFranchise Owner. (See Corrective Action Policy).
Circumvention of Policy: If it is found that an UnFranchise Owner has circumvented this policy (or any other policy) by using any device, mechanism or arrangement such as trade names, DBA’s, assumed names, a spouse or family member’s name, federal identification numbers, fraudulent Australian Tax File Number or Australian Business Number, or fabricated Business Development Centers (collectively “Alter Egos”) to establish an UnFranchise Business in another line of sponsorship, or by arranging for someone to establish an UnFranchise Business to be used as an “alter ego”, the UnFranchise Owner will be subject to immediate termination of their IUA&A, and all BV resulting from this activity will be removed and commissions reversed. This includes using a passive “alter ego” which is defined as an UnFranchise Owner not engaging in the customary, and in some cases, required activities of legitimate UnFranchise Owner; such activities, include, but are not limited to, retailing, meeting sales requirements, sponsoring, attending meetings, attending training classes, and completing certification requirements. In addition, an UnFranchise Owner paying, with their own credit card or other form of payment, to meet the sales requirements of an alter ego, in order to keep the alter ego active and/or qualified, is considered passive alter ego activity. There will be zero tolerance for violations of this section.
New Q-Date: Upon initially qualifying a BDC in the new placement, the UnFranchise Owner will receive a new Q-date and first-quarter grace period, because s/he is effectively a new UnFranchise Owner in terms of the MPCP.
Monthly Service Charge: UnFranchise Owners who have been inactive for 270 days and have a credit on their Market Australia account will be assessed a monthly service charge, either until the UnFranchise Owner establishes a new UnFranchise Business 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 UnFranchise Owner has with Market Australia: U.S., Canada, Taiwan, Hong Kong, the United Kingdom, Singapore, Malaysia and Indonesia. The monthly service charge for each country-specific account is as follows: USD$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, S$25 for accounts in Singapore, RM80 for accounts in Malaysia and Rp. 300,000 for accounts in Indonesia.

SEC. 8 ANNUAL RENEWAL

Each term of the UnFranchise Owner Application and Agreement (IUA&A) ends on the last business day of an UnFranchise Owner/Sales Representative’s Start Month in the following year. The “Start Month” is the month in which an UnFranchise Owner or Sales Representative’s Start Date falls. In order to extend the term of the IUA&A, UnFranchise Owners and Sales Representatives must renew on an annual basis by submitting an Annual Renewal Form (Form 1052) by the last business day of the UnFranchise Owner/Sales Representatives’ Start Month.

Sales Representatives: A Sales Representative must complete and mail the paper Form 1052 and the Fee, before the last business day of the start month.
1. There is no required renewal fee for the Sales Representatives; however, Sales Representatives may not participate in the MPCP.
2. Sales Representatives who do not timely submit and Form 1052 will have their access to the UnFranchise® Business Account suspended; however, an IUA&A with “Sales Representative, Late Renewal” may be submitted and access to the UnFranchise® Business Account will be reinstated.
NOTE: Upline UnFranchise Owners should be aware that if the Annual Renewal Form is not timely received, the Sales Representative’s Personal Business Volume (PBV) and Personal Internet Business Volume (PIBV) will purge (erased to 0). This will impact Group Business Volume (GBV) and Group Internet Business Volume (GIBV) even if other requirements are met for accrual.
UnFranchise Owners: An UnFranchise Owner must complete and mail the paper Form 1052 and the fee or the Auto Renewal Programme in the UnFranchise® Business Account. Each UnFranchise Owner must pay his or her own Fees.
1. An UnFranchise Owner who does not timely submit Form 1052 will have all Personal Business Volume purged (erased to 0), GBV and GIBV 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. An UnFranchise Owner who submits the paper Form 1052 without paying the fee will have all accrued GBV and GIBV flushed (erased to 0), their initial Q-date erased from the computer database, and their status reduced to Sales Representative. However, the UnFranchise Owner’s PBV and PIBV 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. An UnFranchise Owner who does not timely renew must submit an IUA&A with “UnFranchise Owner, Late Renewal” selected and pay a full subscription fee to regain UnFranchise Owner status. A late renewal does not alter the UnFranchise Owner’s initial placement and sponsor information, but the UnFranchise Owner will need to re-qualify and will receive a new Q-date, after meeting all qualification requirements. Another First-Quarter Grace Period applies (see Minimum Activity Requirements and Exercising the Monthly Accrual Option).
4. If Form 1052 is submitted timely but with a payment for renewal fees which cannot be accepted by Market Australia for any reason (e.g., counter or starter cheques, cheques without the UnFranchise Owner’s name and address printed on them by the bank, etc.), the form and fees will be returned to the UnFranchise® Owner unprocessed. In this case the UnFranchise Owner must submit another Form 1052 and the proper renewal fee, by the Annual Renewal deadline.
5. Auto-Renewal Programme
  1. To use the Auto Renewal Programme, an UnFranchise Owner must “Opt In” to the programme in the UnFranchise® Business Account. An UnFranchise Owner may Opt In to the programme at initial registration or anytime thereafter, except that access to the Auto Renewal Programme is blocked five 5 days prior to the first day of the Start Month. During this period, the UnFranchise Owner can neither Opt In or cancel the Auto Renewal Programme because the renewal processing has already begun.
  2. Primary and Secondary credit cards can be designated on the credit card screens in the UnFranchise® Business Account.
    1. The Primary credit card will be charged the renewal fee on the first business day of the Start Month.
    2. 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.
    3. 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.
    4. If all of the above attempts to charge the fee fail, then the UnFranchise Owner will need to manually renew by sending in a paper Form 1052 along with the fee, before the last business day of their Start Month.
  3. UnFranchise Owners may also set up Auto Renewal for their Asia-Pacific Global operation by going to that country’s UnFranchise® Business Account. International Reentry Centre (IRC) operations under Global Unification do not require annual renewal separate from the renewal of the primary UnFranchise Business.
6. Annual renewal fees are nonrefundable.

SEC. 9 EXERCISING THE MONTHLY ACCRUAL OPTION

A qualified BDC will accrue Group Business Volume (GBV) month-to-month provided (1) the minimum amount of Personal Business Volume (PBV) is ordered and assigned to BDC-001 and (2) an order for the UnFranchise® Management System (UFMS) is received by Market Australia, both by the appropriate dates. This Monthly Accrual Option may be exercised by using the UnFranchise AutoShip Program or placing manual orders for the minimum amount of PBV and/or the UFMS. Note: UnFranchise Owners must pay for their own UFMS.

To Exercise the Monthly Accrual Option: Minimum monthly PBV amounts for exercising the Monthly Accrual Option are as follows: 50 PBV for UnFranchise Owner Level; 100 PBV for Coordinator Level; and 150 PBV for Executive Coordinator Level or higher UnFranchise Level. The respective UnFranchise Levels shall be determined based on MPCP pay out criteria being satisfied in ANY of the MPCPs (i.e., “Global” MPCP) in which the UnFranchise Owner is qualified. Example: if an UnFranchise Owner receives the equivalent of AUD$375.00 commission for reaching 1200/1200, 2400/2400, or 3600/3600 GBV in a “Global” MPCP, then the UnFranchise Owner shall be considered a “Coordinator” in their “Home Country” MPCP and ALL associated UnFranchise Level requirements for all MPCPs shall apply. UnFranchise Owners placing a product order or orders for the minimum monthly PBV (50, 100, or 150) assigned to their BDC-001 and ordering or renewing their UFMS 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 GBV through the first three-Q-date period provided a minimum of 50 PBV in addition to the qualifying order(s) has been placed and assigned to the respective UnFranchise Owner’s BDC-001, within (i.e., prior to the end of) their first Three-Q-Date Period, and the respective UnFranchise Owner has purchased at least one month’s subscription to the UFMS, in the last month of their first three-Q-date period.
  1. 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 PBV and at least one month's subscription to the UFMS is not placed within the first three-Q-date period, then all GBV accrued by the UnFranchise Owner’s qualified BDC(s) will be flushed (erased to 0).
  2. 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 UnFranchise Owner must submit the applicable minimum PBV (100 PBV for Coordinator; 150 PBV for Executive Coordinator) and an order for the UFMS to exercise the Monthly Accrual Option. This is accomplished by assigning the minimum PBV amount to the UnFranchise Owner's BDC-001 and purchasing a subscription to the UFMS for the current monthly Q-date period. If a commission cheque is earned by an UnFranchise Owner within the first three-Q-date period, he/she should immediately contact an active upline Certified Executive Coordinator to ensure that appropriate BV and an order for the UFMS 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 GBV on a month-to-month basis, UnFranchise Owners must place the applicable minimum PBV amount (50, 100, or 150 PBV) assigned to their BDC-001 and order or renew their UFMS subscription prior to their Q-date each month. Note: The minimum PBV and order for the UFMS 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 UFMS 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 UnFranchise Owners' criteria to change regarding exercising the Monthly Accrual Option, a 28-day Grace Period applies under the following guidelines:
  1. BV-related: If a commission cheque that will increase an UnFranchise Owner’s minimum monthly PBV amount is earned within 28 days of the upcoming monthly Q-date, then the UnFranchise Owner remains at the current BV level to continue to accrue GBV month-to-month. The UnFranchise Owner 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 that will increase an UnFranchise Owner’s minimum monthly PBV amount is earned, and the upcoming monthly Q-date is more than 28 days from the date the commission is earned, then the UnFranchise Owner 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 an UnFranchise Owner’s minimum monthly PBV amount is earned within 28 days of the upcoming monthly Q-date, and the UnFranchise Owner 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)].
  2. UnFranchise Management System-related: If a commission is earned within 28 days of the upcoming monthly Q-date, and the UnFranchise Owner 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)].
UnFranchise Owners Not Exercising Accrual Option: Exercising the Monthly Accrual Option is not required.
1. If UnFranchise Owners choose not to exercise the Monthly Accrual Option, their accrued GBV through the end of the monthly Q-date period for which the Monthly Accrual Option is not exercised will flush (reset to 0); however, UnFranchise Owners who remain qualified will begin accruing GBV again beginning the commission week directly after the flush.
2. If UnFranchise Owners do not exercise the Monthly Accrual Option by their next monthly Q-date, their accrued GBV will flush (reset to 0) again at the end of that monthly Q-date period, and so on.
Active Life Span of Group Business Volume: Accrued GBV shall have a 365-day life span from the date of the order. The life span of GBV does not extend to the Friday of the week in which the order turns 365 days old but expires on the 366th day. GBV greater than 365 days old shall no longer count towards the pay out of commissions.

SEC. 10 ACTIVATING A BUSINESS DEVELOPMENT CENTRE (ACTIVATION)

A BDC must be activated to earn commissions and Management bonuses, which is accomplished by the UnFranchise Owner personally sponsoring at least one qualified UnFranchise Owner placed in the left downline of the BDC and personally sponsoring at least one qualified UnFranchise Owner placed in the right downline of the BDC.

Minimum Requirements and Maintenance: For a BDC to earn commissions and management bonuses at least one personally sponsored and qualified UnFranchise Owner must be in the left and right downline. Failure to maintain at least one personally sponsored and qualified UnFranchise Owner on both the left and right side of a BDC will result in the sponsoring UnFranchise Owner forfeiting commission pay outs when required volumes are reached. No retroactive commission will be issued.
The BDC 002 right side and the BDC 003 left side (inside legs) for all UFOs will be not be available for business development until that UFO earns AUD$16,875 in commissions in 12 weeks, the equivalent of achieving Professional Coordinator three months in a row.
UnFranchise Owner Eligibility:
1. A newly sponsored and qualified UnFranchise Owner who is not properly linked (unlinked BDC) will not be valid for activating the sponsoring UnFranchise Owner until the date of linkage correction.
2. Qualified UnFranchise Owners operating from the same address as any existing UnFranchise Owner, even if the UnFranchise Business has been approved by the company, will not count towards meeting the activation requirement for any UnFranchise Owner.
3. BDCs placed from reentry authorisation or other acquired BDCs will not count towards meeting the activation requirement.
4. Non-profit Organisation (NPO) UnFranchise Businesses 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 UnFranchise Owner being used for activation: (a) trade names, (b) assumed names, (c) federal identification numbers, (d) fraudulent Tax Identification numbers or ABNs, (e) agreements to operate an UnFranchise Business, (f) a spouse or significant other, (g) family members, (h) business or nonprofit 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 UnFranchise Owners. 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:
  1. The violating UnFranchise Owners may be required to pay back all unearned commissions paid out as a result of theinvalid sponsorship;
  2. The violating UnFranchise Owners may have all accrued volume flushed (erased to 0);
  3. The violating UnFranchise Owners may be subject to the Corrective Action Procedure.

SEC. 11 MINIMUM COMMISSIONS REQUIREMENTS

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

Form 1000: An UnFranchise Owner shall complete and submit to Market Australia a current, valid Form 1000, accompanied by a minimum of two sales receipts totaling AUD$250.00, to receive any commission, including the UnFranchise Owner’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 UnFranchise Owner’s quarter, regardless of commissions. If a valid Form 1000 is not received for BDC-001 by the UnFranchise Owner’s quarter-ending date, not only will the UnFranchise Owner flush any Group Business Volume (GBV) and purge Personal Business Volume (PBV) totals, but also any commission on hold for BDC-001 for failing to meet the Form 1000 requirement will be forfeited.
Coordinators (UnFranchise Owners Who Have Earned An AU$375.00 Commission): In addition to the Form 1000 requirement, Coordinators shall complete and submit to Market Australia 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 AUD$375.00 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.
Executive Coordinators (UnFranchise Owners Who Have Earned An AUD$750.00 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 a New UnFranchise Owner Training, a Basic 5 Training, and an Executive Coordinator Certification Training and pass the Test (passing grade) within 28 days of qualifying for their first Executive Coordinator AUD$750.00 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. This requirement can be completed before an UnFranchise Owner achieves the Executive Coordinator UnFranchise Level.

SEC. 12 MANAGEMENT PERFORMANCE COMPENSATION PLAN (MPCP) PAY OUT CRITERIA

Qualified, active, and activated BDCs participating in the MPCP shall be eligible to earn commission and Management bonuses weekly on Group Business Volume (GBV) generated by UnFranchise Owners in their downline organisations.

Weekly Cycle: Weekly commission cycles calculating accrued GBV from product orders placed, correctly assigned, and processed shall run from 2:00 p.m. AEST on Friday to 1:59 p.m. AEST of the following Friday (excluding “grace” period provided to UnFranchise® Management System (UFMS) members using faxed orders, 1-800 number orders, or the online ordering process). If Market Australia’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 that Market Australia is open that week. Note: The Friday-to-Friday commission cycle only refers to the weekly cycle by which Market Australia determines the qualification of commissions; it does not refer to the time frame in which Market Australia processes those commissions.
1. Orders received by mail by 1:59 p.m. AEST Friday will count towards the current week. The 1:59 p.m. deadline also pertains to all other mail, such as mailed Form 1000’s, other business forms, sales tax documents, etc.
2. Form 1000’s timely filed by the end of the UnFranchise Owner’s quarter and submitted online by 11:59 p.m. AEST on Friday will count towards the current period.
3. UFMS members will have until 4:59 p.m. AEST on Fridays to fax orders or place orders through the 1-800-number using an approved and registered credit card or “credit on account” as the method of payment.
4. Online orders from customer facing sites (SHOP.COM, SHOPGLOBAL.COM, isotonix.com, motivecosmetics.com, getlayered.com, lumieredevie.com, tlsSlim.com, etc.) placed by registered Preferred Customers by 11:59 PM AEST on Friday will count towards the current period if the UFO has a current UFMS Subscription. If the UFO does not have a current UFMS Subscription order placed by 4:59 PM AEST will count towards the current period.
5. Online orders placed on UnFranchise.com by UFMS members by 11:59 p.m. AEST on Fridays will count towards the current period if the UFO has a current UFMS Subscription. to place orders through the online ordering process. If the UFO does not have a current UFMS Subscription orders placed by 4:59 PM will count towards the current period.
  
  Note: If Market Australia 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. AEST 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 Australia. If Market Australia determines that there was not enough “down time” to warrant an extension past the 11:59 p.m. AEST deadline for “Online Electronic Ordering,” then any orders received by Market Australia after 11:59 p.m. AEST will be credited for the following week.
6. Weekly commissions and management bonuses shall be paid on GBV totals, based on final posting and reconciliation figures, two weeks from the week-ending Friday of that particular commission cycle.
Weekly Compensation Criteria And Management Parameters:
1. AUD$375.00 Commission: for accruing equal to or greater than 1,200 GBV on the left side and 1,200 GBV on the right side of the respective BDC.
2. AUD$375.00 Commission: for accruing equal to or greater than 2,400 GBV on the left side and 2,400 GBV on the right side of the respective BDC. This includes the previous 1,200 GBV.
3. AUD$375.00 Commission: for accruing equal to or greater than 3,600 GBV on the left side and 3,600 GBV on the right side of the respective BDC. This includes the previous 2,400 GBV.
4. AUD$750.00 Commission: for accruing equal to or greater than 5,000 GBV on the left side and 5,000 GBV on the right side of the respective BDC. The includes the previous 3,600 GBV.
5. AUD$750.00 Leadership Bonus: when having a BDC on the left side and a BDC on the right side each receive an AUD$750.00 commission for reaching the 5,000/5,000 GBV compensation criteria, in the same weekly commission cycle that the respective BDC earns an AUD$750.00 commission for reaching the 5,000/5,000 GBV compensation criteria. Note: All three commission 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.
6. All accrued GBV totals are cumulative (i.e., inclusive of the GBV accrued for reaching the previous compensation criteria), until reaching the 5,000/5,000 GBV 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 GBV in excess of the 5,000 GBV 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 Management bonuses one BDC may earn in a weekly commission cycle shall be AUD$2,625.00.
9. Commission payments will be made by direct deposit to the bank account on file with Market Australia, as registered at the UnFranchise® Owner’s UnFranchise Business Account.
10. If for any reason an UnFranchise Owner seeks to recall a direct deposit before the time necessary for the bank to reverse the deposit, for example, where the bank account on file has been closed or the account information was input incorrectly, an AUD$35.00 service fee will be charged against the funds deposited and the deposit will be made to an account properly registered at the UnFranchise® Owner’s UnFranchise Business Account.
11. If an UnFranchise Owner is to receive a physical commission cheque for any reason but does not receive it in the mail, the UnFranchise Owner can call UnFranchise Services to request a Stop Payment be placed on the commission cheque.
  1. The UnFranchise Owner must wait two full weeks from the date the cheque was mailed to request a Stop Payment on commissions. If the cheque has not been cashed, a replacement cheque will be issued. There is no charge to UnFranchise Owners for Stop Payments on commission cheques as long as the cheque was never received by the UnFranchise Owner and he/she waits the full two weeks before contacting Market Australia.
  2. If an UnFranchise Owner wants to request a Stop Payment on a commission cheque before the two-week waiting period is over — e.g., the cheque was tossed into the trash by mistake — there will be a service charge incurred by the UnFranchise Owner. If the cheque has not been cashed, a replacement cheque will be issued.
  3. Once UnFranchise Owners have requested a Stop Payment, they should not attempt to cash the original cheque if it arrives. UnFranchise Owners must wait on the replacement cheque at that point.
12. Market Australia will issue a Stop Payment on any commission cheque that has not cleared the bank within six months of the date the cheque was issued. The amount of any such cheque, less the current stop payment fee, will be placed on the UnFranchise Owner's Market Australia credit account.
13. Commissions earned and any credit on 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 Australia, and as part of certain Corrective Action proceedings. A service fee of AUD$30.00 will be charged in cases where Market Australia is required to administer processes to accomplish the hold and/or disbursement ordered.
14. Disputes between parties to an UnFranchise Business, including spouses, may require commissions and credit accounts held until resolved. A service fee of AUD$30.00 will apply against the UnFranchise Business in this instance as well.

SEC. 13 ADDITIONAL/MULTIPLE BUSINESS DEVELOPMENT CENTRES

Additional BDCs may be placed and/or acquired (other than initial entry) only in the downline of an UnFranchise Owner’s BDC-001 through “reentry authorisation” or “acquisition” of a BDC.

Reentry Business Development Centres:
1. An UnFranchise Owner is granted a “reentry” authorisation 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 reentry shall NOT be awarded for reaching the 5,000/5,000 Group Business Volume (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 “reentry” will not be considered valid by Market Australia until after the commission has been received by the UnFranchise Owner. Subsequent attainment of the 5,000/5,000 GBV compensation criteria will not authorise another “reentry” unless accomplished by an additional BDC (e.g., 002, 003, 004 etc.). An invalid “reentry qualification” order will have BV automatically assigned to the UnFranchise Owner’s BDC-001.
2. The “reentry” of an additional BDC must be exercised in accordance with (a) OR (b) below:
  1. There must be at least five (5) UnFranchise Businesses inclusive of all their BDCs (established during enrollment) between the re-entering UnFranchise Owners’ initial BDCs and the placement of the “reentry”; or
  2. The “reentry” must be placed below a BDC in your organisation (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 AUD$750 commission) within the MPCP; and.
  3. The reentry BDC-004 may only be placed in the left leg of the BDC-002 and the right leg of BDC-003 in accordance with all other reentry placement rules until the UnFranchise Owner meets the AUD$16,875 commission criteria in 12-consecutive weekly pay cycles, the equivalent of achieving Professional Coordinator three months in a row. Moreover, the inner leg of the BDC-004 will not be eligible for new UnFranchise Owner placement until the AUD$16,875 commission criteria in 12-consecutive weekly pay cycles has been met.
3. Additional BDCs from “reentry” must be qualified (200 Personal Business Volume (PBV)) at the time the “reentry” BDC is placed. An UnFranchise Owner Sales Report (Form 1000) must be completed and submitted accompanied by a minimum of two retail receipts totaling AUD$250.00 prior to earning a commission (this is a one-time-only requirement unless at some point the UnFranchise Owner purges).
Acquired Business Development Centres: Acquiring additional BDCs in an UnFranchise Owner’s downline is approved only in very rare, extenuating circumstances and begins with obtaining written approval from the company. UnFranchise Owners may not sell, assign, or otherwise transfer their BDC(s), marketing position, or other UnFranchise Owner rights and obligations without written authorisation from the company. UnFranchise Owners 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:
  1. The prospective “buyer” must be the equivalent or higher UnFranchise Level as the “selling” UnFranchise Owner and must have been an UnFranchise Owner with Market Australia for at least 12 months prior to acquisition.
  2. UnFranchise Owners may only acquire a BDC in their downline, and the “selling” UnFranchise Owner cannot have been inactive more than 270 days.
  3. UnFranchise Owners relinquishing rights and obligations to a BDC shall not be eligible to be re-sponsored as an UnFranchise Owner for a period of 270 days from the date of sale and/or transfer.
2. Approval:
  1. Upon written approval by the company, UnFranchise Owners must submit a notarised purchase agreement, signed by both the terminating and the purchasing UnFranchise Owners, along with a processing fee, attention of the Compliance Department.
  2. Each acquired UnFranchise Business shall be assigned a separate and distinct identification number from the UnFranchise Owner’s original BDC(s), of which the company will notify the acquiring UnFranchise Owner by telephone, letter, or fax.
  3. Upon receiving the new identification number, the acquiring UnFranchise Owner must requalify each acquired BDC in order to begin accruing GBV in the respective centre. 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. UnFranchise Owners must meet the Personal Business Volume based on the UnFranchise Level attained by the previous UnFranchise Owner to continue to accrue GBV month to month.
  4. Each acquired BDC must reactivate to be eligible to earn commission and Management bonuses. Original sponsorship rights to downline UnFranchise Owners from the acquired BDCs for activation requirements terminate upon acquisition.
  5. An UnFranchise Owner Sales Report (Form 1000) must be completed and submitted accompanied by a minimum of two retail receipts totaling AUD$250.00 within 90 days of qualification.
  6. The acquired BDC-001 must be enrolled in the UnFranchise AutoShip Program within 28 days from the issuance of the new ID number by the company.
  7. All activity requirements shall apply to each acquired BDC or groups of BDCs (in the case of acquiring an UnFranchise® Business) separate and distinct from BDCs owned by initial entry or owned through reentry authorisation. This shall include requirements relative to qualification, activation, management, annual renewal, UFMS membership, etc.
  8. Please allow 10-15 business days from the date of written company approval for Market Australia to set up an acquired BDC. Do not place UnFranchise Owners downline until this process has been completed in the computer system.

SEC. 14 INTERNET BUSINESS VOLUME COMPENSATION PLAN (IBVCP)

The Internet Business Volume (IBV) programme provides an opportunity for Market Australia UnFranchise® Owners to earn an additional AUD$1,875 per BDC per week, in addition to the standard MPCP, while maximising and leveraging the same sales and distribution organisation. IBV is generated from the purchase of products from Market Australia and its Affiliate Partners. IBV can be generated through the AU.SHOP.COM site by ordering products and services, and by using the Market Australia Credit Card for everyday purchases. IBV will accrue towards generating a second tier of commissions (IBV commissions) that complement the first tier of commissions generated by accruing standard BV. With the introduction of the supplemental IBV compensation, Market Australia’s MPCP results in a potential total payout per BDC of AUD$4,500 per week.

Note: UnFranchise Owners will not earn IBV on their own purchases nor on their Preferred Customer’s purchases when (a) the purchaser’s browser is not configured to accept cookies; (b) the order is later cancelled, or the goods or services are later returned; (c) the Partner Store does not report the purchase to Market Australia; (d) the purchaser conducts “sham” transactions or otherwise colludes with merchants, makes any misrepresentation in connection with a purchase, maintains multiple accounts or does not otherwise comply with Market Australia’s policies; (e) a particular Partner Store changes or discontinues its affiliate relationship with Market Australia; (f) a Partner Store decides not to pay commissions to Market Australia for any reason, including but not limited to the use of coupon codes; or (g) orders with IBV from Partner Stores will be awarded as per guidelines in Chapter 15.

Ordering IBV Products: Products, goods and services having IBV that are purchased from Market Australia Partner Stores may only be ordered and sold through the internet or Shop Local Program. Products, goods and services having IBV that are Market Australia-exclusive brands, Shopping Annuity products and Super IBV products will appear in the Market Australia price list and may be ordered by fax, manual order, 1-800-number and online.
Prerequisite to Participation: UnFranchise Owners must be qualified and active in the standard MPCP in accordance with policy and procedure in the UnFranchise Manual.
Initial Participating Internet Business Development Centre (IBDC): The BDC-001 is initially designated to participate in the accrual of Group IBV (GIBV) generated from the purchase of products by UnFranchise Owners and their customer base within the left and right organisations of this personal IBDC. Initially UnFranchise Owners may only accrue GIVB on one personal BDC.
Designation of Additional Participating IBDCs: UnFranchise Owners will earn the right to designate additional personal BDCs to participate in the IBVCP through an additional IBDC designation process. It works exactly like the Reentry Authorisation process within the standard MPCP, with the only difference being that instead of earning the right to create a new BDC, eligible UnFranchise Owners will simply designate an additional existing personal BDC within their organisation in which to accrue GIBV for additional potential IBV commissions. The first time a personal IBDC designated to participate in the IBVCP completes the entire IBV Compensation Payout Cycle (i.e., earns an IBV commission for accruing at least 5,000 GIBV from the left organisation and 5,000 GIBV from the right organisation), UnFranchise Owners are authorised to designate one additional existing personal BDC to participate in the IBVCP. No BDC will accrue IBV towards earning IBV commissions until it is designated as an IBDC to participate in the IBVCP.
Automatic IBV Assignment: UnFranchise® Owners need to set two BDCs for automatic assignment of IBV for orders placed online. These are initially set to their own BDC-002 or BDC-003. Eligible BDCs for downline assignment of IBV are governed by current policy and procedure for the placement of BV downline in the standard MPCP. IBV generated from these orders will be alternately assigned to the UnFranchise Owner's designated BDCs by order as they are generated.
Accrual of IBV: To continue accruing GIBV towards IBV commission payout criteria, UnFranchise Owners must meet the Minimum Activity Requirements of the standard MPCP and exercise the IBV Monthly Accrual Option. A purge in the standard MPCP for not meeting the Minimum Activity Requirements or a red flush in the standard MPCP for not exercising the BV Monthly Accrual Option will result in the same within the IBVCP; however, a red flush in the IBVCP will not affect GBV in the standard MPCP.
Exercising the Monthly IBV Accrual Option: A qualified BDC will accrue Group Internet Business Volume month-to-month provided the UnFranchise Owner is exercising the Monthly IBV Accrual Option by meeting the following:
1. The UnFranchise Owner must order the UnFranchise Management System (UFMS) monthly by the appropriate monthly Q-date.
2. The UnFranchise Owner must place product orders monthly or participate in AutoShip for the following minimum BV amounts: 50 PBV for UnFranchise Owner Level, 100 PBV for Coordinator Level and 150 PBV for Executive Coordinator Level or higher Unfranchise Level.
3. The UnFranchise Owner must place product orders monthly or participate in UnFranchise AutoShip for the following minimum IBV amounts: 10 IBV for Level 1 (UnFranchise Owners who have not yet earned an IBV commission); 20 IBV for Level 2 (UnFranchise Owners who have earned their first IBV commission); and 30 IBV for Level 3 (UnFranchise Owners who have earned an IBV commission for completing the IBV commission cycle at 5,000/5,000 IBV), and all such amounts are assigned to BDC-001. The respective IBV Levels shall be determined based on IBVCP payout criteria satisfied in ANY of the IBVCPs (i.e., “Global”) in which the UnFranchise Owner is qualified. Example: if an UnFranchise Owner receives the equivalent of AUD$300 commission for reaching 1,200/1,200, 2,400/2,400, or 3,600/3,600 GIBV in a “Global” IBVCP, then the UnFranchise Owner shall be considered a “Level 2” in their “Home Country” IBVCP and ALL associated IBV Level requirements for all IBVCPs shall apply.
The UnFranchise Owner must complete the UnFranchise Setup.
The maximum amount of IBV for select Market Australia products and/or Shopping Annuity Brand products that will be permitted per the monthly Q-date period is 500 IBV.
In order to receive an IBV commission, the UnFranchise Owner must be activated in accordance with the standard MPCP requirement.
28-Day Grace Period: For any change in status that causes the UnFranchise Owner's minimum IBV monthly amount to change regarding exercising the IBV Monthly Accrual Option, a 28-day grace period applies under the following guidelines:
1. Initial designation: If the date of the initial designation of an IBDC as participating in the IBVCP is within 28 days of the upcoming monthly Q-date, then the UnFranchise Owner is not required to submit the minimum IBV amount by that next monthly Q-date to continue to accrue GIBV month-to-month. The UnFranchise Owner must then submit the applicable IBV for the first monthly Q-date period for which the 28-Day Grace Period does not apply. However, if an IBDC is designated as participating in the IBVCP, and the upcoming monthly Q-date is more than 28 days from the date the IBDC is designated, then the UnFranchise Owner must submit the applicable IBV by the next monthly Q-date to continue to accrue GIBV month-to-month.
2. Earned commissions: If a commission that will increase an UnFranchise Owner’s minimum monthly IBV amount is earned within 28 days of the upcoming monthly Q-date, then the UnFranchise Owner remains at the current IBV level to continue to accrue GIBV month-to-month. The UnFranchise Owner must then submit the applicable IBV (20 IBV for Level 1; 30 IBV for Level 2) for the first monthly Q-date period for which the 28-day grace period does not apply. However, if a commission that will increase an UnFranchise Owner’s minimum monthly IBV amount is earned, and the upcoming monthly Q-date is more than 28 days from the date the commission is earned, then the UnFranchise Owner must submit the applicable IBV (20 IBV for Level 1; 30 IBV for Level 2) by the next monthly Q-date to continue to accrue GIBV month-to-month.
UnFranchise Owners Not Exercising IBV Accrual Option: Exercising the IBV Monthly Accrual Option is not required.
1. If UnFranchise Owners choose not to exercise the IBV Monthly Accrual Option, their accrued GIBV through the end of the monthly Q-date period for which the IBV Monthly Accrual Option is not exercised will flush (reset to 0); however, UnFranchise Owners who remain active in the standard MPCP will begin accruing GIBV again beginning the commission week directly after the flush.
2. If UnFranchise Owners do not exercise the IBV Monthly Accrual Option by their next monthly Q-date, their accrued GIBV will flush (reset to 0) again at the end of that monthly Q-date period, and so on.
Active Life Span of Group Internet Business Volume: Accrued GIBV shall have a 548-day life span from the date of the order. The life span of GIBV does not extend to the Friday of the week in which the order turns 548 days old but expires on the 549th day. GIBV greater than 548 days old shall no longer count towards the payout of commissions.

SEC. 15 MARKET AUSTRALIA’S LADDER SYSTEM OF ACHIEVEMENT

Field management levels (UnFranchise Levels) may be earned through participation in the Management Performance Compensation Programme. UnFranchise Owners attaining new field management UnFranchise Levels will be recognised in Market Australia’s UnFranchise Owner Magazine. Field management UnFranchise Level requirements are as follows.

Level 1 — UNFRANCHISE OWNER

Complete UnFranchise Owner Application and Agreement; and
Submit Subscription Fee.

Level 2 — QUALIFIED UNFRANCHISE OWNER

Complete Level 1; and
Place and accumulate 200 Personal Business Volume in orders in BDC-001; and
Maintain proper linkage in the Market Australia genealogy.

Level 3 — COORDINATOR (Blue Pin)

Complete Level 2; and
Develop two sales and distribution organisations, one on the left and one on the right side of a BDC, each accruing 1,200 GBV in a weekly commission cycle; and
Receive AUD$375.00 commission.

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

Complete Level 3; and
Develop two sales and distribution organisations, 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
Receive AUD$750.00 commission.

Level 5 — SENIOR EXECUTIVE COORDINATOR (Blue Pin with One Diamond and One Sapphire)

Complete Level 4; and
Receive AUD$1,875.00 in commissions within four consecutive weekly commission cycles.

Level 6 — MASTER COORDINATOR (Blue Pin with Two Diamonds)

Complete Level 4; and
Receive AUD$750.00 Management Bonus.

Level 7 — SENIOR MASTER COORDINATOR (Blue Pin with Two Diamonds and a Sapphire)

Complete Level 6; and
Receive AUD$3,750.00 in commissions and Management Bonuses within 4 consecutive weekly commission cycles.

Level 8 — PROFESSIONAL COORDINATOR (Blue Pin with Three Diamonds)

Complete Level 6; and
Receive AUD$5,625.00 in commissions and Management Bonuses within 4 consecutive weekly commission cycles.

Level 9 — SUPERVISING COORDINATOR (Blue Pin with Four Diamonds)

Complete Level 6; and
Receive AUD$9,375.00 in commissions and Management Bonuses within 4 consecutive weekly commission cycles.

Level 10 — NATIONAL SUPERVISING COORDINATOR (Blue Pin with Five Diamonds)

Complete Level 6; and
Receive AUD$12,500.00 in commissions and Management Bonuses within four consecutive weekly commission cycles.

Level 11 — EXECUTIVE SUPERVISING COORDINATOR (Blue Pin with Six Diamonds)

Complete Level 6; and
Receive AUD$18,750.00 in commissions and Management Bonuses within 4 consecutive weekly commission cycles.

Level 12 — DIRECTOR (Onyx with One Diamond)

Complete Level 6; and
Receive AUD$22,500.00 in commissions and Management Bonuses within 4 consecutive weekly commission cycles.

Level 13 — EXECUTIVE DIRECTOR (Onyx with Two Diamonds)

Complete Level 6; and
Receive AUD$31,250.00 in commissions and Management Bonuses within 4 consecutive weekly commission cycles.

Level 14 — FIELD VICE PRESIDENT (Onyx with Three Diamonds)

Complete Level 6; and
Receive AUD$45,000.00 in commissions and Management Bonuses within 4 consecutive weekly commission cycles.

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

Complete Level 6; and
Receive AUD$56,250.00 in commissions and Management Bonuses within 4 consecutive weekly commission cycles.

Level 16 — SENIOR EXECUTIVE FIELD VICE PRESIDENT (Onyx with Five Diamonds)

Complete Level 6; and
Receive AUD$78,750.00 in commissions and Management Bonuses within 4 consecutive weekly commission cycles.

Level 17 — FIELD PRESIDENT (Onyx with Six Diamonds)

Complete Level 6; and
Receive AUD$100,000.00 in commissions and Management Bonuses within 4 consecutive weekly commission cycles.

Level 18 — INTERNATIONAL FIELD PRESIDENT (Platinum with One Diamond)

Complete Level 6; and
Receive AUD$125,000.00 in commissions and Management Bonuses within 4 consecutive weekly commission cycles.

Level 19 — INTERNATIONAL FIELD CHAIRMAN (Platinum with Two Diamonds)

Complete Level 6; and
Receive AUD$156,250.00 in commissions and Management Bonuses within 4 consecutive weekly commission cycles.

Level 20 — SENIOR INTERNATIONAL FIELD CHAIRMAN (Platinum with Three Diamonds)

Complete Level 6; and
Receive AUD$187,500.00 in commissions and Management Bonuses within 4 consecutive weekly commission cycles.

SEC. 16 MASTER UNFRANCHISE OWNER PROGRAM

A Master UnFranchise Owner is a qualified and active UnFranchise Owner who has made the commitment to master the UnFranchise Business System by implementing the established tasks, activities, and practices.

Qualifications:
1. Complete the Shopping Annuity® assessment;
2. Have a subscription for the UnFranchise Management System (UFMS);
3. Purchase a total of 1,500 BV of product for the respective quarter;
4. Generate a minimum of 250 IBV of Shopping Annuity IBV, Partner Store and/or One Cart Direct purchases for the respective quarter;
5. Personally sponsor a minimum of one (1) qualified and active UnFranchise Owner;
6. For the respective quarter, attend or conduct:
  1. One (1) New UnFranchise Owner Training; and
  2. One (1) Basic Five Training;
7. Attend one (1) Executive Coordinator Certification Training per year;
8. Purchase a minimum of three (3) tickets to the next Market Australia Annual Convention; and
9. Earn a minimum of AUD$1,125.00 in BV commissions per quarter and/or complete a Basic 5 Diagnostic Test, in which the UnFranchise Owner scores greater than or equal to 50 percent.
All qualification criteria must be satisfied within the calendar quarter in which the UnFranchise Owner is applying. UnFranchise Owners must submit their Qualification Verification and Validation Form by the 28th day following the end of the quarter. Any IBV that is created in a given quarter in excess of the IBV criterion is carried over for one (1) quarter and added to your IBV created in the next quarter to help you satisfy the criterion. IBV Rollover applies within the Master UFO program only if you completed all Master UFO criteria (qualified) for the quarter. For the Master UFO program, IBV can be created by the UnFranchise Owner’s purchases and/or their Preferred Customers’ purchases.
When an UnFranchise Owner satisfies the Master UnFranchise Owner qualifications, the UnFranchise Owner will be eligible to designate a second UnFranchise Owner for volume placement for the quarter after the reconciliation/verification quarter subject to the downline placement policy. For example: An UnFranchise Owner who completes the Master UnFranchise Owner criteria during the second quarter of 2019 will be eligible to designate a second UnFranchise Owner for volume placement for the fourth quarter.
1. The second placement will be awarded for each quarter in which the UnFranchise Owner qualifies as a Master UnFranchise Owner. If the qualifications are not met for a subsequent quarter, the second designated placement will be removed.

SEC. 17 REGIONS UNIFICATION

In order to simplify the international expansion, countries have been grouped in Regions. UnFranchise Owners do not need to follow the requirements of the Global MPCP to expand internationally into Regions other than to the Asia-Pacific Region. If an UnFranchise Owner wishes to internationally expand to the Asia-Pacific Region (as defined below) the Global MPCP requirements must be followed. In order to activate your Taiwan UnFranchise Business, you must submit the original completed Taiwan Nonresident Agreement, via regular mail to the corporate office. Retail Profit and/or commissions will be awarded from the date we receive your Taiwan Nonresident Agreement.

If you elect “Taiwan” as your entry country in the United Asia-Pacific Markets, we must receive your Taiwan Nonresident Agreement to activate your access into the UAP Markets.

Regions:
1. Americas Region: The United States and Canada and EMP countries in Latin America are unified in one single region, the Americas Region.
2. Asia-Pacific Region: Hong Kong, Taiwan, Australia, Singapore, Malaysia and EMP countries in the Asia-Pacific Region are unified in one single region, the Asia-Pacific Region.
3. Europe Region: The United Kingdom and other EMP countries in the European Union are unified in one single region, the Europe Region.
Home Region: Home Region is the region in which an UnFranchise Owner registered his/her UnFranchise Business.
Activation: To count for activation, the personally sponsored UFOs must be from the same region as the BDC they are activating.
Unified Accounts: BV and IBV accrued by UnFranchise® Owners doing business in two or more countries within a Region count toward a unified account (“Unified Account”) Note: All UnFranchise Owners who have expanded their business to Taiwan, Hong Kong, Singapore, Malaysia, and/or Australia will have their accounts in those countries unified.
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 UnFranchise Owner’s “home country,” i.e., for a Canadian UnFranchise Owner commissions will be paid in Canadian Dollars.
Compliance with local rules and regulations: In order to comply with the different laws and regulations of the countries in which Market Australia and/or its affiliates operate, the UnFranchise Manual varies from country to country according to applicable laws and regulations. UnFranchise Owners expanding within a certain Region and into other Regions must conduct their activities and manage their organisations’ activities in those countries in accordance with the UnFranchise 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. 18 GLOBAL MANAGEMENT PERFORMANCE COMPENSATION PLAN

The following are requirements for UnFranchise Owners 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.

Application: UnFranchise Owners must log on to their UnFranchise® Business Account and complete and submit both the Global UnFranchise Owner Agreement and the specified global country’s Application & Agreement.
1. In order to activate your Taiwan UnFranchise Business, you must submit the original completed Taiwan Nonresident Agreement, via regular mail to the corporate office. Retail Profit and/or commissions will be awarded from the date we receive your Taiwan Nonresident Agreement.
2. If you elect “Taiwan” as your entry country in the United Asia-Pacific Markets, we must receive your Taiwan Nonresident Agreement to activate your access into the UAP Markets.
Designation of Initial Participating BDC: UnFranchise Owners must designate a currently existing personal BDC to participate in the accrual of global group BV generated from the purchase of products by global-country UnFranchise Owners and their customer base within the left and right organisations of this designated personal BDC. Initially UnFranchise Owners may only designate one personal BDC to participate in the global MPCP. UnFranchise Owners must visit their UnFranchise Business Account and register to designate their initial personal BDC for participation in the global MPCP.
Designation of Additional Participating BDCs: UnFranchise Owners 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 Reentry Authorisation process within the standard MPCP, with the only difference being that instead of earning the right to create a new BDC, eligible UnFranchise Owners will simply designate an additional existing personal BDC within their organisation 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 Pay out Cycle (i.e., earns a commission for accruing at least 5,000 global GBV from the left organisation and 5,000 global GBV from the right organisation), UnFranchise Owners are authorised to designate one additional existing personal BDC to participate in the global MPCP in the Asia-Pacific Region.
Placement of Personally Sponsored Global UnFranchise Owner BDCs: Global UnFranchise Owners must be linked/placed on either the left or right side of the sponsoring UnFranchise Owner’s designated BDC(s) currently existing in the UnFranchise Business Development System. All BDCs, “Home Country” and global, are placed within the same genealogical or organisational system.
Accrual of Global GBV: To make the designated BDC eligible to accrue global GBV, UnFranchise Owners must order a global country subscription kit (this is done during the initial registration process) and place an order for 200 PBV worth of “Home Country” products and assign BV placement to the designated BDC (this is done during the initial registration process once the UnFranchise Owner has designated his/her global BDC). To continue accruing global GBV towards commission pay out criteria, UnFranchise Owners 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 Country” MPCP, the “Home Country” BDCs must be requalified before requalifying any global BDCs. Note: UnFranchise Owners will not accrue any global GBV from orders generated prior to qualifying their own global BDC.
Minimum Global GBV Commissions Requirements: In order to be eligible to earn and receive global commissions, UnFranchise Owners must:
1. Be activated in accordance with the standard MPCP requirement in their Home Region.
2. Activate their designated global BDC by personally sponsoring at least one qualified global-country UnFranchise Owner into the left organisation of your designated global BDC and at least one qualified global-country UnFranchise Owner into the right organisation of your designated global BDC.
3. Have a current UnFranchise® Management System subscription.
4. Maintain minimum activity requirements in their “Home Region” MPCP.
Assignment of BV: Home-Region UnFranchise Owners ordering products having Home Region BV may only assign BV downline to BDCs of personally sponsored home-Region UnFranchise Owners who meet the volume placement criteria (see Assignment of BV and IBV) and these products must be shipped to a Home-Region address. Home Region UnFranchise Owners ordering products having global BV may only assign BV downline to BDCs of personally sponsored Asia-Pacific UnFranchise Owners who meet the volume placement criteria (see Assignment of BV and IBV).
Global Management Bonuses: A global Management bonus is earned in the same manner as in the Home Country MPCP. However, to qualify for a global Management bonus, an UnFranchise Owner must have an Asia-Pacific Home Region BDC on the left side of its organisation and an Asia-Pacific Home Region BDC on the right side of its organisation reach 5,000/5,000 in Business Volume generated in the Asia-Pacific Home Region in the same weekly commission cycle that the UnFranchise Owner reaches 5,000/5,000 Business Volume in the Asia-Pacific Region and receives the respective commission. Only Asia-Pacific Home Region UnFranchise Owners in the downline that flush in the same weekly pay cycle count toward qualifying for the global Management Bonus.

SEC. 19 GLOBAL UNIFICATIONS

IRC
1. Every Market Australia UnFranchise Owner receives an International Reentry Center (IRC) to expand into the Europe Region. Market Australia UnFranchise Owners expanding into the Europe Region do not have to follow the Global MPCP requirements. 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 Australia UnFranchise Owner’s organisation. It is recommended that IRCs be placed in the weak leg of the organisation.
4. Activity Requirements: An UnFranchise Owner Sales Report (Form 1000) must be completed and submitted, accompanied by a minimum of two retail receipts totaling AUD$250.00 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 UnFranchise Owner on the IRC left leg and one qualified Europe Home Region UnFranchise Owner 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 BV/IBV placed below the Europe Region IRC, will not accrue in the Europe Region BV/IBV banks. However, the BV/IBV will flow upline in the Home Region genealogy above the Europe IRC. To better illustrate this, 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.qualified Home Region BDCs. Please see illustration below.
7. IRC Management Bonuses: An IRC Management Bonus is earned in the same manner as in the Home Region MPCP. However, to qualify for an IRC Management Bonus, an UnFranchise Owner must have a Europe Home Region BDC on the left side of its IRC organisation and a Europe Home Region BDC on the right side of its IRC organisation reach 5,000/5,000 in Business Volume generated in the Europe Region and receive the respective commission in the same weekly commission cycle that the UnFranchise Owner’s IRC reaches 5,000/5,000 Business Volume in the Europe Region. Only Europe Home Region UnFranchise Owners in the downline that flush in the same weekly pay cycle count toward qualifying for the IRC Management Bonus.
8. Additional IRCs: Additional IRCs may only be placed in the left leg of the BDC 002 and the right leg of BDC 003 in accordance with all other reentry placement rules until the UnFranchise Owner earns AUD$16,875 in commissions in 12 weeks, the equivalent of achieving Professional Coordinator three months in a row. Moreover, the inner leg of the additional IRC will not be eligible for new UnFranchise Owner placement until the UnFranchise Owner meets the AUD$16,875 commission criteria in 12-consecutive weekly pay cycles, the equivalent of achieving Professional Coordinator three months in a row.
UGC
1. A Unified Global Center (UGC) is designated when an UnFranchise Owner has qualified his/her IRC and accumulates 1200/1200 BV/IBV in Home Region volume. Note: For those UnFranchise Owners who have already expanded internationally to the Europe Region, UGC replaces the designated global business center.
2. When the combined BV/IBV reaches and exceeds 5,000/5,000 in a weekly pay cycle, the excess originated exclusively from the IRC is transferred to the UGC. Only IRC-converted volume exceeding 5,000/5,000 in a weekly pay cycle is accrued to the UGC. Note: Home Region BV/IBV never accrues to the UGC and the UGC does not earn Management Bonus.
3. All IRC-originated BV/IBV exceeding 5,000/5,000 in a weekly pay cycle accumulates in the UGC. UGC commissions are calculated and paid as per the standard MPCP.