3.1 QUALIFYING AS A BRAND REPRESENTATIVE

A. Electing to Qualify as a Brand Representative

As a Brand Affiliate you may elect to qualify as a Brand Representative by submitting a Letter of Intent to Nu Skin. You can find the Letter of Intent form by signing in to your market’s Brand Affiliate website.

B. Qualification Period

On the date you elect to qualify as a Brand Representative, your Qualification Period begins. The Qualification Period is up to six consecutive months, inclusive of the month you make your election. For example, if you elect on January 25th to qualify as a Brand Representative, your Qualification Period would be January through June. The Qualification Period ends on the earlier of:

1. the date you advance to a Brand Representative after meeting the Qualification Requirements;
2. the end of the month in which you fail to meet the Qualification Monthly Minimum; and
3. the end of the sixth month of the Qualification Period.

C. Qualification Requirements and Qualification Monthly Minimum

1. Qualification Requirements: Complete 12 Building Blocks (4 of which must be Sharing Blocks) during the Qualification Period. Alternatively, if you submit a Letter of Intent from December 1, 2018 through December 31, 2019, you may complete the Qualification Requirements by completing 10 Building Blocks (4 being Sharing Blocks), with at least 10 different Retail Customers, Members or Brand Affiliates in your Consumer Group, within 3 consecutive months. If you do not complete these Qualification Requirements under this alternative, you can still complete the Qualification Requirements by completing 12 Building Blocks (4 being Sharing Blocks), within 6 consecutive calendar months.
2. Qualification Monthly Minimum: Complete 2 Building Blocks each month, except the month you complete the Qualification Requirements.

For example, if you had a total of 11 Building Blocks (assuming four of them are Sharing Blocks) during the first three months of the Qualification Period, you would qualify as a Brand Representative the fourth month after completing the last Building Block needed to finish your Qualification Requirements, even though you did not have two Building Blocks that month.

D. Completion of Qualification Requirements

When you complete the Qualification Requirements, you are promoted to a Brand Representative on the first day of the next weekly period (the 8th, 15th, or 22nd of that month, or on the 1st of the next month) and are eligible to start earning the Building Bonus for all purchases by your Consumer Group after you advance.

If someone from your Consumer Group is also in Qualification, they will only become part of your Team if you: (1) complete your first Qualification month in the same month or earlier than the month they complete their Qualification Requirements, and (2) finish Qualification within your Qualification Period, otherwise they will not be part of your Team going forward and you will not earn any compensation from their sales activity. See Addendum A for more details.

E. Failure to Complete Qualification Requirements

If you do not meet the Qualification Monthly Minimum each month during the Qualification Period, your Qualification is terminated, effective the following month. If you do not satisfy the Qualification Requirements within the Qualification Period, your Qualification terminates, effective the following month. In either case, if you want to qualify as a Brand Representative you need to submit a new Letter of Intent and begin Qualification again.

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3.2 BRAND REPRESENTATIVE STATUS

A. Maintain, Hold, or Lose Brand Representative Status

Your status as a Brand Representative is maintained, held or lost based on your sales performance

each month.

1. Maintaining Brand Representative Status—At Least Four Building Blocks
   If you complete at least four Building Blocks in a month, you meet Maintenance and maintain your status as a Brand Representative for that month.
2. Holding Brand Representative Status—At Least One Building Block and Sufficient Flex Blocks
   If you (1) complete at least one Building Block in a month, and (2) have sufficient Flex Blocks (described below) available to make up the difference in required Building Blocks (e.g., 2 Building Blocks plus 2 Flex Blocks), then we automatically apply any available Flex Blocks to hold your status as a Brand Representative for that month.
3. Losing Brand Representative Status—No Building Blocks or Insufficient Flex Blocks
   If you (1) do not complete any Building Blocks in a month, or (2) do not have enough Flex Blocks available to make up for the missing required Building Blocks in a month, then you lose your Brand Representative status and become a Brand Affiliate effective the first day of the next month.

B. Maintenance After Advancing to Brand Representative

To maintain your status as a Brand Representative, you must begin meeting Maintenance in the first full month following the completion of your Qualification Requirements. See Addendum A for more details.

C. Impact of your Brand Representative Status on your upline Brand Representative

When you meet Maintenance or we hold your status as a Brand Representative in a month, you count as a G1 Brand Representative in your upline Brand Representative’s Team. If you lose your Brand Representative status, then you revert to a Brand Affiliate and do not count as a G1 Brand Representative, effective the following month (e.g., if you lose Brand Representative status during the month of June because you do not complete enough Building Blocks and do not have enough Flex Blocks available, then your lost Brand Representative status becomes effective July 1st and you are a Brand Affiliate and will no longer count as a G1 Brand Representative).

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3.3 FLEX BLOCKS

A. Description

A Flex Block is a Building Block substitute that we use to hold your status as a Brand Representative if you do not complete at least 4 Building Blocks in a month. Flex Blocks do not provide Sales Volume or Commissionable Sales Value and no Bonus is paid on Flex Blocks. Flex Blocks have no monetary value and cannot ever be redeemed for cash. Flex Blocks do not expire and there is no limit to the number of Flex Blocks you can accumulate; provided, however, that any accumulated Flex Blocks will be forfeited if you lose your Brand Representative status or your Brand Affiliate Account is terminated.

B. Allocation of Flex Blocks

You are allotted Flex Blocks as a new Brand Representative and each following year. At the beginning of your 1st full month as a new Brand Representative, you are allotted 3 Flex Blocks. In your 2nd month, you are allotted 2 more Flex Blocks. In your 3rd month as a Brand Representative, you are allotted a single additional Flex Block, for a total of six. Each following year, you are allotted an additional 3 Flex Blocks in your anniversary month as a Brand Representative. The Flex Blocks will be reflected in your Volumes & Genealogy.

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  MONTH 1

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  MONTH 2

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  MONTH 3

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  EVERY ANNIVERSARY

C. Application of Flex Blocks

We apply Flex Blocks to hold your Brand Representative status, if you have at least one completed Building Block. In any month that you have not met Maintenance, we will automatically apply up to 3 Flex Blocks in place of missing Building Blocks (to the extent you have sufficient Flex Bocks available), to hold your status as a Brand Representative. An entire Flex Block is applied in place of an incomplete Building Block regardless of how much Sales Volume is needed to complete the Building Block. You can check your Volumes & Genealogy to see how many Flex Blocks you have available.

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3.4 RESTART

If you lose your status as a Brand Representative, then Restart is the process that gives you six months to become a Brand Representative again and reclaim your former sales network (as if you had not lost your Brand Representative status). See Addendum C for more details on Restart.

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