Addendum B
- Sales Performance Plan
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ADDENDUM B Incentive
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 Group or Team at the time of purchase. The calculation and recovery of Bonus adjustments from Product returns will depend on the type of Bonus and when the Products are returned.
1. BONUS ADJUSTMENT CALCULATION
Your Bonuses will be adjusted for Product returns as follows:
A. Retailing Bonus
When your Direct Customers return Products, the Company will recover any Retailing Bonuses you received on those Products.
B. Selling and Affiliate Referring Bonuses
When your Direct Customers or the Direct Customers of your Personally Registered Brand Affiliates return Products, the Company will recover any Selling and Affiliate Referring Bonuses you received on those Products.
If your Direct Customers return Products in the same month in which they were purchased, your Direct Customer Sales Volume will be reduced by the amount of Sales Volume returned. Your Selling and Affiliate Referring Bonus percentages paid in subsequent weeks may be reduced due to the impact those returns have on your Direct Customer Sales Volume.
If a Product return from Products purchased in a prior month reduces your Direct Customer Sales Volume below a Bonus threshold that you achieved in that month, the Company will debit your Direct Customer Sales Volume by the amount needed to reach the Bonus threshold that you were paid on. This debit will occur in the month after the Products were returned.
EXAMPLE: If you achieved 750 Direct Customer Sales Volume in January and were paid a 8% Selling Bonus and 12% Affiliate Referring Bonus but 400 Sales Volume of your January Product sales were returned in March, you would have a negative 150 Direct Customer Sales Volume balance at the start of April and you would not qualify to earn the 8% Selling Bonus and 12% Affiliate Referring Bonus in April unless you produce 650 Direct Customer Sales Volume in April to make up for the negative balance and achieve the 500 Direct Customer Sales Volume Bonus tier.
C. Building Bonus
When someone who was in your Group at the time of purchase returns Products, the Company will recover any Building Bonus you received on those Products.
If someone in your Group returns Products in the same month in which they were purchased, your Group Sales Volume will be reduced by the amount of Sales Volume returned.
If a Product return from Products purchased in a prior month reduces your Group Sales Volume below a Bonus threshold that you achieved in that month, the Company will debit the appropriate Group Sales Volume the month after the Product was returned.
EXAMPLE: If you achieved 3,300 Group Sales Volume in January and were paid a 10% Building Bonus but 600 Sales Volume of your January Product sales were returned in March, you would have a negative 300 Group Sales Volume balance at the start of April and you would not qualify to earn the 5% Building Bonus in April unless you produce 2,300 Group Sales Volume in April to make up for the negative 300 balance and achieve the 2000 Group Sales Volume Bonus tier.
D. 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.