Addendum B
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ADDENDUM B – ADJUSTMENTS AND RECOVERY OF BONUSES

The Company has the right to adjust Bonuses paid to you as described in the Policies and Procedures, including adjustments based on the return of Products by you or others who were in your Consumer Group or Team. The calculation and recovery of Bonus adjustments from Product returns will depend on the type of Bonus, when the Products are returned and who returned the Products.

 

 

1. BONUS ADJUSTMENT CALCULATION

Your Bonuses will be adjusted for Product returns as follows:

 

A. Sharing and Retailing Bonuses

When you or others who were in your Consumer Group or Team at the time of purchase return Products, the Company will recover any Sharing and Retailing Bonuses you received on those Products.

 

B. Building Bonus

When you or others who were in your Consumer Group at the time of purchase return Products, your Building Bonus will be adjusted as follows:

 

  1. Current Month Returns: For Products returned in a subsequent week of the month it was purchased, the Sales Volume and Commissionable Sales Value of the returned Products will be replaced by the Sales Volume and Commissionable Sales Value of any subsequent Product purchases in that month that you have not already received a Building Bonus on. Your Building Bonus will be positively or negatively adjusted to the extent the Commissionable Sales Value of the replacement Sales Volume is different than the Commissionable Sales Value of the original Sales Volume. See the example at the end of the Addendum.
  2. Prior Month Return Calculation: For Products returned in a month subsequent to the month they were purchased, your Building Bonus will be negatively adjusted by the Commissionable Sales Value of the returned Products multiplied by your average Building Bonus percentage for the month the returned Products were purchased.

 

In addition, when you return Products, your Building Bonus on incomplete Building Blocks will

be adjusted.

 

C. Leading Bonus

When someone who was on your Team at the time of purchase returns Products, the Company will recover any Leading Bonus you received on those Products. In addition, when you return Products, your Leading Bonus will be adjusted if the decrease in Sales Volume changes your Leading Bonus calculation for the month you received the Leading Bonus for that Product.

 

 

2. BONUS ADJUSTMENT RECOVERY

If no Bonus has been paid on returned Products, then no Bonus recovery is necessary. If a Bonus has been paid on Products that are subsequently returned, any positive adjustment will be added to your future Bonuses and the Company will recover any negative adjustments as follows:

 

A. Personal Returns

If you return Products that you personally purchased, your Bonuses will be adjusted, and any negative adjustment will be recovered as a deduction from your refund.

 

B. Other Consumer Group or Team Returns

If someone else in your Consumer Group or Team returns Products that they purchased, your

Bonuses will be adjusted, and any negative adjustments will be recovered as a deduction from your future Bonuses.

 

EXAMPLE: The following illustrates the impact of Commissionable Sales Value on the adjustment of your Building Bonus.

 

Week 1: You complete 1 Building Block with 500 points of Sales Volume that has Commissionable Sales Value of 500. This Building Block includes 150 points of Sales Volume from Products purchased by a Member in your Consumer Group. 

 

Week 2: You sell Products with 300 points of Sales Volume, but with a lower Commissionable Sales Value of 200. In Week 2, the Member who purchased Products with 150 points of Sales Volume in Week 1 returns all of the Products.

 

End of Week 2: We recalculate your Week 1 Building Bonus: 

  • Given the return of Products with 150 points of Sales Volume in Week 2, we take Sales Volume from Week 2 sales and apply it to your Building Block in Week 1 (150 points moved from Week 2 to Week 1 so you still have a completed Building Block in Week 1).
  • Because the Commissionable Sales Value of the replacement Sales Volume is less than the Commissionable Sales Value of the returned Products, your Building Bonus from Week 1 is recalculated and the adjustment is applied in Week 2, as shown below. 
WEEK ORIGINAL SV ADJUSTED SV ORIGINAL CSV ADJUSTED CSV ORIGINAL WEEK 1 BUILDING BONUS ADJUSTMENT TO WEEK 1 BUILDING BONUS
1 500 500 – 150 [Products return] +150 [from week 2] = 500 500 500 – 150 [Products return] +100 [from week 2] = 450 500*5% = $25  
2 300 300 – 150 [to week 1] = 150 200 200 – 100 [to week 1] = 100   ($450 – $500) * 5% = – $2.50