Addendum D

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ADDENDUM D

BLUE DIAMOND AND PRESIDENTIAL DIRECTOR BUSINESS BUILDER POSITIONS


As you build and lead your Team, you have the opportunity to become a Blue Diamond Director or a Presidential Director. The following chart shows how:


The first month you are paid as a Blue Diamond Director, you will receive a Business Builder Position (BBP) on your G1 and the first month you are paid as a Presidential Director you will receive a Presidential Director Business Builder Position (Presidential Director BBP) on the G1 of your BBP (the G2 of your original Brand Affiliate Account). In any month that you are qualified to be paid as a Blue Diamond Director, your BBP will occupy a Generation in the Sales Network. In any month that you are qualified to be paid as a Presidential Director, your BBP and Presidential Director BBP will each occupy a Generation (G1 and G2 respectively) in the Sales Network. 


A. Automatically Created  


The BBP and Presidential Director BBP are automatically created during the Bonus calculation process for the month you meet the eligibility requirements above. You retain any BBP and Presidential Director BBP awarded to you unless you lose your status as a Brand Representative and do not complete Restart. 

 

1. RELATIONSHIP BETWEEN A BBP, A PRESIDENTIAL DIRECTOR BBP, AND YOUR ORIGINAL BRAND AFFILIATE ACCOUNT

 

For purposes of your Brand Affiliate Agreement, your BBP and Presidential Director BBP are treated as part of your Brand Affiliate Account and may not be sold or transferred separately. 


A. Leadership Teams 


Your BBP and Presidential Director BBP will not be considered Leadership Teams to your Brand Affiliate Account. The G1 Brand Representatives under your BBP and Presidential Director BBP function as Leadership Teams and may be compressed to meet Title requirements as outlined below. 


For purposes of determining Leadership Team Sales Volume for you and the next Brand Representatives above you in a month, your BBP and Presidential Director BBP remain on your G1 and G2 respectively (unless you have lost your Brand Representative status). 


Personally Registered Affiliate Sales


Eligible Direct Customer Sales Volume from your original Brand Affiliate Account, BBP, and Presidential Director BBP will be summed to determine your Selling and Affiliate Referring Bonus percentages.  


Direct Customer Sales Volume from your Personally Registered Brand Affiliates referred by your original Brand Affiliate Account, BBP, and Presidential Director BBP will be summed and the corresponding Net Sales Price will be paid at the qualified Affiliate Referring Bonus percentage determined by the sum of your Direct Customer Sales Volume. 


Purchases made by Direct Customers of your BBP and Presidential Director BBP will not count as Personally Registered Affiliate Sales of your original Brand Affiliate Account. 

Purchases made by Direct Customers of your original Brand Affiliate Account, BBP, and Presidential Director BBP will count as Personally Registered Affiliate Sales for the Brand Affiliate who referred you. 


B. Group Sales Volume 


You, your BBP, and your Presidential Director BBP each have their own Groups. For purposes of Maintaining your Brand Representative status and determining your Building Bonus and Leading Bonus eligibility, Group Sales Volume from your original Brand Affiliate Account, BBP, and Presidential Director BBP will be combined. 


C. BBP and Presidential Director BBP Bonuses Based on Your Original Brand Affiliate Account Title and Brand Representative Status 


BBP
 

For a month that your original Brand Affiliate Account is qualified to be paid as a Blue Diamond Director or Presidential Director, Bonuses on your BBP will be calculated as if it was a Blue Diamond Director. For any month that your original Brand Affiliate Account does not meet all requirements to qualify to be paid as a Blue Diamond Director, your BBP will be combined with your original Brand Affiliate Account and any Sales Network of your BBP will move up one Generation in your Sales Network and the Sales Networks of the Brand Representatives above you for that month. 


Presidential Director BBP


For a month that your original Brand Affiliate Account meets all requirements to qualify to be paid as a Presidential Director, Bonuses on your Presidential Director BBP will be calculated as if it was a Blue Diamond Director. For any month that your Brand Affiliate Account does not meet all requirements to qualify to be paid as a Presidential Director, but does qualify to be paid as a Blue Diamond Director, your Presidential Director BBP will be combined with your BBP and any Sales Network of your Presidential Director BBP will move up one Generation in your Sales Network and in the Sales Networks of the Brand Representatives above you for that month.  


For any month that your original Brand Affiliate Account does not qualify to be paid as a Blue Diamond Director, your BBP and your Presidential Director BBP will be combined with your original Brand Affiliate Account and any Sales Network of your BBP will move up one Generation and your Presidential Director BBP will move up two Generations in your Sales Network and in the Sales Networks of the Brand Representatives above you. 


The following illustrates how the Leading Bonus is calculated on your original Brand Affiliate Account, BBP, and Presidential Director BBP. We assume that your original Brand Affiliate Account, BBP, and Presidential Director BBP collectively have at least 3,000 points of Group Sales Volume and are eligible to earn a 5% Leading Bonus. 


Blue Diamond Director 


Your original Brand Affiliate Account and BBP can each earn 5% on their respective G1 to G6. This means that you can effectively earn 10% on the G1-G5 of your BBP. 


Presidential Director 


Your original Brand Affiliate Account, BBP, and Presidential Director BBP can each earn 5% on their respective G1 to G6. This means that you can effectively earn 10% on the G1 to G5 of your BBP and on the G5 of your Presidential Director BBP, and 15% on the G1 to G4 of your Presidential Director BBP. 


D. Movement Between Your Original Brand Affiliate Account, BBP, and Presidential Director BBP  

i. Leadership Teams cannot be moved from your original Brand Affiliate Account to a BBP or Presidential Director BBP except as provided below. 

ii. Automatic Movement by the Company:
    a. Leadership Teams on your original Brand Affiliate Account  


To qualify to be paid as a Presidential Director for a given commission period you must maintain a minimum of six Leadership Teams, including one with 10,000+ Leadership Team Sales Volume, one with 20,000+ Leadership Team Sales Volume, one with 30,000+ Leadership Team Sales Volume, and one with 40,000+ Leadership Team Sales Volume

i. The minimum six Leadership Teams must be directly under your original Brand Affiliate Account. 

ii. Three of the four 10,000+,20,000+,30,000+, and 40,000+ Leadership Team Sales Volume Leadership Teams must be directly under your original Brand Affiliate Account. The fourth may be under either your original Brand Affiliate Account or your BBP. 
    b. Movement to your original Brand Affiliate Account 
If you fall below six Leadership Teams on your original Brand Affiliate Account, then the Company will automatically move Leadership Teams from your BBP and Presidential Director BBP to your original Brand Affiliate Account until there are at least six Leadership Teams on your original Brand Affiliate Account. This movement of Leadership Teams from your BBP or Presidential Director BBP to your original Brand Affiliate Account will be effective until the requisite number of Leadership Teams are replaced, as stipulated below. If your original Brand Affiliate Account does not qualify to be paid as a Blue Diamond Director (i.e., having six Leadership Teams, including one Leadership Team with 10,000+ Leadership Team Sales Volume, one with 20,000+ Leadership Team Sales Volume, and one with 30,000+ Leadership Team Sales Volume), then the Leadership Teams that are on your BBP and Presidential Director BBP will be evaluated and the Leadership Team(s) with the least amount of Leadership Team Sales Volume necessary to fill the Leadership Team(s) deficiency on your original Brand Affiliate Account will be moved to your original Brand Affiliate Account for the commission period being evaluated. Additionally, if you are missing one of the four Leadership Teams with 10,000+ Leadership Team Sales Volume, 20,000+ Leadership Team Sales Volume, 30,000+ Leadership Team Sales Volume, and 40,000+ Leadership Team Sales Volume between your original Brand Affiliate Account and your BBP, then any Leadership Teams that are on your Presidential Director BBP will be evaluated and the Leadership Team with the least amount of Leadership Team Sales Volume necessary to fill the Leadership Team deficiency on your original Brand Affiliate Account or your BBP will be moved to your BBP for the commission period being evaluated. 

 

    c. Movement Back to your BBP or Presidential Director BBP
If a Leadership Team from your BBP or Presidential Director BBP was automatically moved from your BBP or Presidential Director BBP due to having less than six Leadership Teams on your original Brand Affiliate Account, you can request to move these Leadership Teams back to your BBP or Presidential Director BBP following your replacement of the requisite Leadership Team(s) on your original Brand Affiliate Account. Your request must be made in writing to your Account Manager within six months following the month of the automatic move.

 

EXAMPLE: If a Leadership Team from your BBP or Presidential Director BBP was automatically moved to your original Brand Affiliate Account at the beginning of February based on your January sales performance, then the six-month period runs from February through July. In August (based on your July sales performance), if you have not (1) replaced the required Leadership Team(s) on your original Brand Affiliate Account, and (2) requested that the Leadership Team(s) be moved back to your BBP or Presidential Director BBP, then the Leadership Team will permanently remain on your original Brand Affiliate Account. 

 

For existing Blue Diamond and Presidential Director accounts as of the launch of this plan, to allow for a smooth transition, Nu Skin reserves the right to waive these BBP and Presidential BBP requirements for an appropriate period of time.