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 United Kingdom UnFranchise^® Business Development System.

Business Development Centre Defined: A Business Development Centre is an operational establishment set up within Market United Kingdom’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).
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 United Kingdom’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 United Kingdom by mail (fax is unacceptable) for entry into the corporate computer database or by completing the signup process online, thereby establishing one’s BDC(s). Note: Sponsors should sign up 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 United Kingdom computer database.

Sales Representative: Individuals who fail to submit the subscription fee enter Market United Kingdom 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 to participate in the MPCP and earn commissions and management bonuses.

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

A person may be involved in one Market United Kingdom UnFranchise Business only. 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 his or her 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, DBA’s, assumed names, a spouse or family member’s name, Unique Taxpayer Reference, fraudulent Social Security or National Insurance Numbers, fabricated Business Development Centres (collectively “Alter Egos”), is unethical and strictly prohibited.

SEC. 4 PLACEMENT OF BUSINESS DEVELOPMENT CENTERS

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 sign-up process by the new UnFranchise Owner’s sponsor.

New Business Development Centres: New BDCs may be established only in available locations, not previously occupied or linked. All Sales Representatives and UnFranchise Owners start with 3 BDCs when they establish their UnFranchise Business. UnFranchise Owners will also start with one (1) International Re-Entry Centre (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 email or mail as soon as possible. Only the sponsor or the unlinked UnFranchise Owner may sign the linkage correction form.

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 United Kingdom’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; 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 Owners 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 qualifies, 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 UnFranchise Owner will receive a Q-Date of the Friday of the week in which the subscription fee is received by Market United Kingdom 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 United Kingdom’s, UnFranchise Management System, the bottom of shipping invoices or Market United Kingdom UnFranchise Services Department. It is recommended that all three 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 not considered established until this time.
Q-Date Periods Defined:
1. Weekly Commission Cycle: All commission pay cycles are weekly and begin on Saturday and end on Friday. If Market United Kingdom’s office is closed due to a Bank holiday, the end of the commission weekly pay cycle for that week will be the last business day Market United Kingdom is open that week.
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. For example, if the original Q-Date is 13 Jan. 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. For example, if the original Q-Date is 13 August 2018, then the monthly Q-Date for August of 2018 will be 17 Aug. 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. For example, if the original Q-Date is 31 Aug. 2018, then the monthly Q-Date for November of 2018 will be 30 Nov. 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 Aug. 2018, the monthly Q-Date for September of 2018 will be 5 Oct. 2018.)
3. Quarter (Three-Q-Date Period or Three-Start-Date Period): Market United Kingdom’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 United Kingdom 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 Jan. 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. The second quarter would begin April 14, 2018, and end July 13, 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 5000/5000 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 United Kingdom 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 United Kingdom’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 United Kingdom’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/IBV and an associated retail profit or ongoing BV/IBV from an initial sale having a retail profit where the respective UnFranchise ID or the purchasing customer is a registered PC of the respective UnFranchise Owner/Sales Representative.

Example: the BV/IBV created could be from an UnFranchise Owner/Sales Representative order in their UnFranchise.com account, an order from a PC on any of the UnFranchise Owner shopping websites which are provided by Market United Kingdom, or be part of a “package” sale where the initial part of the sale has BV/IBV value and retail profit; and the subsequent associated ongoing monthly purchase/payment part of the package has BV/IBV 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 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.com or fulfilled by their UnFranchise AutoShip totalling a minimum of 150 PBV in activity assigned to their personal BDC-001 (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 United Kingdom along with a minimum of two retail receipts totalling a minimum of £115.00 for UnFranchise Owners residing in the UK every quarter for BCD-001 to Market United Kingdom. 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 £35.00 for UnFranchise Owners residing in the UK of products personally used/consumed by the respective Sales Representative’s or Unqualified UnFranchise Owner’s household may be used as part of the £115.00 for UnFranchise Owners residing in the UK 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 United Kingdom 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 United Kingdom 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 physical address (address or residence) or complete phone number for acceptance (addresses must include a valid postcode, 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 “Home Region” are considered valid receipts
  5. Market United Kingdom will periodically conduct a random audit of retail receipts for authenticity. Invalid receipts will result in actions being initiated and may disqualify the Form 1000.
3. Contractual Relationship: A 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 an Annual Renewal form will result in PBV and PIBV being purged (erased to 0). Their access to UnFranchise.com denied, and continued authorisation to sell and represent the Company’s 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 UnFranchise.com or fulfilled by their UnFranchise AutoShip totalling a minimum of 150 BV in activity assigned to their personal BDC-001 (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 totalling 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 the 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 totalling 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 United Kingdom each quarter accompanied by a minimum of two retail sales receipts totalling a minimum of £115.00 for UnFranchise Owners residing in the UK. Form 1000 shall only be submitted in the UnFranchise Owner’s home region. Each UnFranchise Owner must personally make the retail sales documented on the Form 1000 to their Preferred Customer. Sales to Preferred Customers who are also UnFranchise Owners or Sales Representatives do not qualify for this purpose and is strictly prohibited.
3. Contractual Relationship: An UnFranchise^® Owner must complete and submit an Annual Renewal Form (Form 1052) and pay 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 to be eligible to earn commissions for that respective BDC. Only the BDC-001 could 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 a Form 1000, Annual Renewal Form, Late Renewal Application or any other form 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 national insurance 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 Number:
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 number, to the attention of the Field Compliance Department, by email to FieldCompliance@MarketAmerica.com or by fax to 336.605.0041.
2. In the sole discretion of Market United Kingdom (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 guarantee that a change in line of sponsorship will be approved):
  1. The sponsor/upline didn’t fulfil 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; or
  4. It is determined that the Save An UnFranchise Owner (SAU) programme was utilised 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 resulting from this activity removed, and all commissions generated from this BV or IBV will be reversed. (i.e., 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 Market United Kingdom. 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, DBAs, assumed names, a spouse or family member’s name, Unique Tax Payer Reference, fraudulent Social Security or National Insurance Numbers, or fabricated Business Development Centres (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, 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 United Kingdom 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 United Kingdom: U.S., Canada, Taiwan, Hong Kong, Australia, Singapore and Malaysia. 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, AUD$30.00 for accounts in Australia, NT$640 for accounts in Taiwan, HK$150.00 for accounts in Hong Kong, £12.75 in the United Kingdom, S$25.00 for accounts in Singapore, and RM80 for accounts in Malaysia.

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’s/ 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. 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 before the last business day of the start Month.
1. There is no required renewal fee for Sales Representatives: however, Sales Representatives may not participate in the MPCP.
2. Sales Representatives who do not timely submit Form 1052 will have their access to UnFranchise.com suspended; however, an IUA&A with “Sales Representative Late Renewal” selected may be submitted and access to UnFranchise.com 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 (erase to 0). This will impact Group Business Volume (GBV) and Group Internet Business Volume (GIBV) will purge (erased to 0). This will impact Group Business Volume 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 enrol in process the Auto Renewal Programme in UnFranchise.com. Each UnFranchise Owner must pay his or her own Fee.
1. An UnFranchise Owners who does not timely submit Form 1052 will have all PBV and PIBV purged (erased to 0), GBV and GIBV flushed (erased to 0), their initial Q-Date erased from the computer database and their access to UnFranchise.com will be suspended.
2. An UnFranchise Owners who submits the paper Form 1052 without paying the Fee will have all accrued Group Business Volumes 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 Personal Business Volume will not be purged. The reduction to Sales Representative status will cause the quarter (on which quarterly minimum activity requirement due dates are based) to no longer be based on the initial Q-Date (which has been erased from the computer database), but on the Start Date. (see Minimum Activity Requirements).
3. An UnFranchise Owners who does not timely renew must submit a late Form 1052 and pay the full subscription fee to regain UnFranchise Owner status. A late renewal does not alter the UnFranchise Owner’s initial placement and sponsor information, but UnFranchise Owners will need to requalify and will receive a new Q-Date only after meeting all requirements for qualification. Another First-Quarter Grace Period applied. (see Minimum Activity Requirements and Exercising the Monthly Accrual Option).
4. If Form 1052 is submitted timely but payment for renewal fees which cannot be accepted by Market United Kingdom for whatever reason, the forms 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 UnFranchise.com. An UnFranchise Owner may Opt In to the programme at initial sign-up or anything thereafter, excepting that the Auto Renewal Programme is blocked five (5) days prior to the first day of your 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 UnFranchise.com.
    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.com site. International Re-entry 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 non-refundable.

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 United Kingdom, both by the appropriate dates. This Monthly Accrual Option may be exercised by using the UnFranchise AutoShip Programme or placing manual orders for the minimum amount of PBV and/or the UFMS. Note: UnFranchise Owners must pay for their own UFMS. The only exception is if a UFMS is ordered on an UnFranchise Owner’s first-time order, which can be paid for by an upline UnFranchise Owner.

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 satisfied in ANY of the MPCPs (i.e., “Global MCPC”) in which the UnFranchise Owner is qualified. Example: if an UnFranchise Owner receives the equivalent of £230.00 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 UnFranchise Management System 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 UnFranchise^® Management System is not placed within the first Three-Q-Date Period, then all Group Business Volume 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 UnFranchise Management System 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 Group Business Volume 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 Group Business Volume will flush (reset to 0) again at the end of that monthly Q-Date period, and so on.
Active Lifespan of Group Business Volume: Accrued GBV shall have a 365-day lifespan from the date of the order. The lifespan 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. This 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 £10,350.00 for UnFranchise Owners residing in the UK, 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 re-entry 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 to meet 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) Unique Tax Payer Reference, (d) fraudulent National Insurance numbers, (e) agreements to operate an UnFranchise Business, (f) a spouse or significant other, (g) family members, (h) business or non-profit 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^® Owner may be required to pay back all unearned commissions paid out as a result of the invalid sponsorship;
  2. The violating UnFranchise Owner may have all accrued volume flushed (erased to 0);
  3. The violating UnFranchise Owner may be subject to the Corrective Action Procedure (CAP).

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 United Kingdom or his/her home country a current, valid Form 1000, accompanied by a minimum of two sales receipts totalling £115.00 for UnFranchise Owners residing in the United Kingdom, 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 and purge 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 A £230.00 Commission): In addition to the Form 1000 requirement, Coordinators shall complete and submit to Market United Kingdom or his/her Home Country 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 £230.00 commission for UnFranchise Owners residing in the United Kingdom. Failure to comply will result in the next commission cheque being held for four consecutive weekly commission cycles from the week the cheque would have otherwise been paid and if the requirement has still not been met by the end of this hold period, the cheque 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 A £460.00 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 Certificate and an Executive Coordinator Certification Training and pass the test (passing grade) within 28 days of qualifying for their first Executive Coordinator £460.00 commission for UnFranchise Owners residing in the UK. Failure to comply will result in the next commission being held for four consecutive weekly commission cycles from the week the cheque 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) PAYOUT CRITERIA

Qualified, active, and activated BDCs participating in the MPCP shall be eligible to earn commission and Management bonuses weekly on 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. on Friday to 2:00 p.m. of the following Friday (excluding “grace” period provided to UnFranchise Management System (UFMS) members using faxed orders, 800-number orders, or the online ordering process). Note: The Friday-to-Friday commission cycle only refers to the weekly cycle by which Market United Kingdom determines the qualification of commissions; it does not refer to the time frame in which Market United Kingdom processes those commissions.
1. Orders received by mail prior to 1:59 p.m. Friday will count towards the current week. The 1:59 p.m. deadline also pertains to all other mail, such as mailed Form 1000s, other business forms, sales tax documents, etc.
2. Form 1000s timely filed by the end of the UnFranchise Owner’s quarter and submitted online by 11:59 p.m. on Friday will count towards the current period.
3. UFMS members will have until 4:59 p.m. on Fridays to fax orders or place orders through the 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 (UK.SHOP.COM, SHOPGLOBAL.COM, uk.motivecosmetics.com, uk.lumieredevie.com, uk.tlsSlim.com, etc.) placed by registered Preferred Customers by 11:59 p.m. 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, orders placed by 4:59 p.m. will count towards the current period.
5. Online orders placed on UnFranchise.com by UFMS members by 11:59 p.m. 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 p.m. will count towards the current period.
  
  Note: If Market United Kingdom determines that the UFMS is not functioning correctly from the corporate office for an unacceptable amount of time, UFMS members have until 1:59 a.m. on Saturday to fax orders using their own 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 United Kingdom. If Market United Kingdom determines that there was not enough “down time” to warrant an extension past the 11:59 p.m. deadline for “Online Electronic Ordering,” then any orders received by Market United Kingdom after 11:59 p.m. 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.

Note: The times listed below are based on “British Time” and apply to all UnFranchise^® Owners in the European Union.

Weekly Compensation Criteria And Management Parameters:

Commissions’ parameters are as follows:
1. £230.00 Commission: for accruing equal to or greater than 1,200 GBV on the left side and 1,200 Group Business Volume on the right side of the respective BDC.
2. £230.00 Commission: for accruing equal to or greater than 2,400 GBV on the left side and 2,400 Group Business Volume on the right side of the respective BDC. This includes the previous 1,200 Group Business Volume.
3. £230.00 Commission: for accruing equal to or greater than 3,600 GBV on the left side and 3,600 Group Business Volume on the right side of the respective BDC. This includes the previous 2,400 Group Business Volume.
4. £460.00 Commission: for accruing equal to or greater than 5,000 GBV on the left side and 5,000 Group Business Volume on the right side of the respective BDC. This includes the previous 3,600 groups Business Volume.
5. £460.00 Management Bonus: when having a BDC on the left side and a BDC on the right side each receive a £460.00 commission for UnFranchise Owners in the United Kingdom for reaching the 5,000/5,000 GBV compensation criteria, in the same weekly commission cycle that the respective BDC earns a £460.00 commission for reaching the 5,000/5,000 GBV compensation criteria. Note: All three commission cheques must meet all requirements for release at the same time. If any commission that would otherwise contribute to a Management Bonus is held for any reason (see Minimum Commissions Requirements), then that held commission will not be eligible to contribute towards any Management Bonus for the week that the commission would have been earned if not held. Also, only Home Region UnFranchise Owners in the Downline that flush in the same weekly pay cycle count towards qualifying for Management Bonus.
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 Group Business Volume in excess of the 5,000 Group Business Volume 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 £1,610.00 for UnFranchise Owners residing in the United Kingdom.
9. Commission payments will be made by direct deposit to the bank account on file with Market United Kingdom, as registered at the UnFranchise Owner’s UnFranchise.com 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, a service charge will be charged against the funds deposited and a new deposit will be made to another account registered at the UnFranchise Owner’s UnFranchise.com account.

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 “re-entry authorisation” or “acquisition” of a BDC.

Re-Entry Business Development Centres:
1. An UnFranchise^® Owner is granted a “re-entry” authorisation the first time and only ONE time per BDC upon receiving the commission for reaching the 5,000/5,000 Group Business Volume (GBV) compensation criteria for the respective BDC within their “Home Country” MPCP. A re-entry shall NOT be awarded for reaching the 5000/5000 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 “re-entry” will not be considered valid by Market United Kingdom until after the commission has been received by the UnFranchise Owner. Subsequent attainment of the 5000/5000 GBV compensation criteria will not authorise another “re-entry” unless accomplished by an additional BDC (e.g., 002, 003, 004 etc.). An invalid “re-entry qualification” order will have BV automatically assigned to the UnFranchise Owner’s BDC-001.
2. The “re-entry” 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 enrolment) between the re-entering UnFranchise Owners’ initial BDCs and the placement of the “re-entry”; or
  2. The “re-entry” must be placed below a BDC in your organisation (excluding one of your personal BDCs) that has completed the pay cycle (5000 BV on the left and 5000 BV on the right, earning the final £460.00 commission for UnFranchise Owners in the United Kingdom) within the MPCP; and
  3. The re-entry 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 re-entry placement rules until the UnFranchise Owner meets the £10,350.00 for UnFranchise Owners residing in the United Kingdom 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 £10,350.00 for UnFranchise Owners residing in the United Kingdom commission criteria in 12-consecutive weekly pay cycles has been met.
3. Additional BDCs from “re-entry” must be qualified (200 Personal Business Volume (PBV)) at the time the “re-entry” BDC is placed. An UnFranchise Owner Sales Report (Form 1000) must be completed and submitted accompanied by a minimum of two retail receipts totalling £115.00 for UnFranchise Owners residing in the United Kingdom 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 United Kingdom 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 £7.00 per BDC 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 email.
  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 PBV 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 totalling £115.00 for UnFranchise Owners residing in the United Kingdom within 90 days of qualification.
  6. The acquired BDC-001 must be enrolled in the UnFranchise^® AutoShip Programme 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 separate and distinct from BDCs owned by initial entry or owned through re-entry authorisation. This shall include requirements relative to qualification, activation, management, Annual Renewal, UFMS membership, etc.
  8. Please allow 10 to 15 business days from the date of written company approval for Market United Kingdom 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 United Kingdom UnFranchise Owners to earn an additional of up to £1,150.00 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 United Kingdom and its Affiliate Partners through the SHOP.COM website. 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 United Kingdom’s MPCP results in a potential total payout per BDC of £2,760.00 per week.

Note: UnFranchise Owners will not earn IBV on their own purchases nor 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 United Kingdom; (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 United Kingdom’s policies; (e) a particular Partner Store changes or discontinues its affiliate relationship with Market United Kingdom; (f) a Partner Store decides not to pay commissions to Market United Kingdom 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 United Kingdom Partner Stores may only be ordered and sold through the internet. Products, goods and services having IBV that are Market United Kingdom exclusive brands, Shopping Annuity products and Super IBV products will appear in Market United Kingdom's price list and may be ordered by fax, manual order and online.
Participation in IBV Programme: The following are guidelines for UnFranchise Owners to be eligible to participate in the accrual of IBV:
1. Prerequisite to Participation: UnFranchise Owners must be qualified and active in the standard MPCP in accordance with policy and procedure in the UnFranchise Manual.
2. 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 GIBV on one personal BDC.
3. Designation of Additional Participating BDCs: UnFranchise Owners will earn the right to designate additional personal BDCs to participate in the IBVCP through an additional BDC designation process. It works exactly like the Re-Entry 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 BDC designated to participate in the IBVCP completes the entire IBV Compensation Payout Cycle), 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.
4. Automatic IBV Assignment: UnFranchise Owners need to set two BDCs for automatic assignment of IBV for orders placed online. These are originally set to their own BDC-002 and BDC-003. Eligible BDCs for downline assignment of IBV is 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.
5. Initial Accrual of IBV: When a personal BDC is initially designated to participate in the IBVCP, the minimum activity requirements and compensation criteria for the first payment cycle only shall be as set up below.
  1. £50.00 Commission: for accruing equal or greater than 300 IBV on the left side and 300 IBV in the rights side of the respective BDC.
  2. £65.00 Commission: for accruing equal or greater than 600 IBV on the left side and 600 IBV in the rights side of the respective BDC.
  3. £115.00 Commission: for accruing equal or greater than 1,200 IBV on the left side and 1,200 IBV in the rights side of the respective BDC.
  To continue accruing GIBV towards IBV commission payout criteria, UnFranchise Owners must meet the minimum activity requirement 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.
6. 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 complete the Shopping Annuity Assessment.
  2. The UnFranchise^® Owner must order the UnFranchise Management System (UFMS) monthly by the appropriate monthly Q-Date;
  3. The UnFranchise Owner must place product orders monthly or participate in UnFranchise AutoShip for the following minimum BV amounts: 50 PBV for UnFranchise Owner Level; 100 PVB for Coordinator Level; and 150 PBV for Executive Coordinator Level or higher Unfranchise Level.
  4. The UnFranchise Owner must place product orders monthly or participate in AutoShip for the following minimum IBV amounts: 10 IBV for Level 1 (UnFranchise Owners who have not yet earned an IBV commission cheque); 20 IBV for Level 2 (UnFranchise^® Owners who have earned their first IBV commission cheque); and 30 IBV for Level 3 (UnFranchise Owners who have earned an IBV commission cheque for completing the IBV commission cycle at 5000/5000 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 a UnFranchise Owner receives the equivalent of £230.00 commission for reaching 1200/1200, 2400/2400, or 3600/3600 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.
7. The UnFranchise Owner must complete the UnFranchise Setup.
8. The maximum amount of IBV for select Market United Kingdom products and/or Shopping Annuity Brand products that will be permitted per monthly Q-date period is 150 IBV.
9. In order to receive an IBV Commission, the UnFranchise Owner must be activated in accordance with the standard MPCP requirement.
10. 28-Day Grace Period: For any change in status that causes the 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 a BDC 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 a BDC is designated as participating in the IBVCP, and the upcoming monthly Q-Date is more than 28 days from the date the BDC 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 cheque 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 cheque 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 cheque 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.
11. 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.
12. Active Life Span Of Group Internet Business Volume: Accrued GIBV created 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 THE MARKET UNITED KINGDOM LADDER SYSTEM OF ACHIEVEMENT

Field management levels (UnFranchise^® Levels) may be earned through participation in the Management Performance Compensation Plan, UnFranchise Owners attaining new field management UnFranchise Levels will be recognised in the Market United Kingdom’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 United Kingdom 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 Group Business Volume in a weekly commission cycle; and
Receive £230.00 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 a £460.00 commission.

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

Complete Level 4; and
Receive £1,150.00 in commissions within four consecutive weekly commission cycles.

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

Complete Level 5; and
Receive £460.00 Management Bonus.

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

Complete Level 6; and
Receive £2,300.00 in commissions and Management Bonuses within four consecutive weekly commission cycles

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

Complete Level 6; and
Receive £3,450.00 in commissions and Management Bonuses within four consecutive weekly commission cycles for UnFranchise Owners residing in the United Kingdom.

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

Complete Level 6; and
Receive £5,750.00 in commissions and Management Bonuses within four consecutive weekly commission cycles for UnFranchise Owners residing in the United Kingdom.

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

Complete Level 6; and
Receive £7,667.00 in commissions and Management Bonuses within four consecutive weekly commission cycles for UnFranchise Owners residing in the United Kingdom.

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

Complete Level 6; and
Receive £11,500.00 in commissions and Management Bonuses within four consecutive weekly commission cycles for UnFranchise Owners residing in the United Kingdom.

Level 12 — DIRECTOR (Onyx with One Diamond)

Complete Level 6; and
Receive £13,800.00 in commissions and Management Bonuses within four consecutive weekly commission cycles for UnFranchise^® Owners residing in the United Kingdom.

Level 13 — EXECUTIVE DIRECTOR (Onyx with Two Diamonds)

Complete Level 6; and
Receive £19,167.00 in commissions and Management Bonuses within four consecutive weekly commission cycles for UnFranchise Owners residing in the United Kingdom.

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

Complete Level 6; and
Receive £27,600.00 in commissions and Management Bonuses within four consecutive weekly commission cycles for UnFranchise Owners residing in the United Kingdom.

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

Complete Level 6; and
Receive £34,500.00 in commissions and Management Bonuses within four consecutive weekly commission cycles for UnFranchise Owners residing in the United Kingdom.

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

Complete Level 6; and
Receive £48,300.00 in commissions and Management Bonuses within four consecutive weekly commission cycles for UnFranchise Owners residing in the United Kingdom.

Level 17 — FIELD PRESIDENT (Onyx with Six Diamonds)

Complete Level 6; and
Receive £61,333.00 in commissions and Management Bonuses within four consecutive weekly commission cycles for UnFranchise Owners residing in the United Kingdom.

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

Complete Level 6; and
Receive £76,667.00 in commissions and Management Bonuses within four consecutive weekly commission cycles for UnFranchise Owners residing in the United Kingdom.

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

Complete Level 6; and
Receive £95,833.00 in commissions and Management Bonuses within four consecutive weekly commission cycles for UnFranchise Owners residing in the United Kingdom.

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

Complete Level 6; and
Receive £115,000.00 in commissions and Management Bonuses within four consecutive weekly commission cycles for UnFranchise Owners residing in the United Kingdom.

SEC. 16 MASTER UNFRANCHISE OWNER PROGRAMME

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 225 IBV of Shopping Annuity IBV, Partner Store and/or OneCart^® 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 5 Training;
7. Attend one (1) Executive Coordinator Certification Training per year;
8. Purchase a minimum of three (3) tickets to the next Market America | SHOP.COM International Convention or World Conference; and
9. Earn a minimum of £690.00 for UnFranchise Owners residing in the United Kingdom, 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%.
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.

Regions:
1. Americas Region: The United States, 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 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.” For a Canadian UnFranchise Owner, commissions will be paid in Canadian Dollars.
Compliance with local rules and regulations: To comply with the different laws and regulations of the countries in which Market United Kingdom 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 in to UnFranchise.com and complete and submit the Global UnFranchise Owner Agreement and the Nonresident UnFranchise Owner Application and Agreement.
1. 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 Asia-Pacific Region, we must receive your Taiwan Nonresident Agreement to activate your access into the Asia-Pacific Region.
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 Asia-Pacific 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 log in to UnFranchise.com 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 Re-Entry 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 payout cycle (i.e. earns a commission cheque 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 signup process) and place an order for 200 PBV worth of “Home Region” products and assign BV placement to the designated BDC (this is done during the initial signup process once the UnFranchise Owner has designated his/her global BDC). To continue accruing global GBV towards commission payout 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 Region” MPCP, the “Home Country” BDCs must be re-qualified 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: To be eligible to earn and receive global commissions UnFranchise Owners must:
1. Be activated in accordance with the standard MPCP requirement.
2. Activate their designated global BDC by personally sponsoring at least one qualified Asia-Pacific UnFranchise Owner into the left organisation of your designated global BDC and at least one qualified Asia-Pacific 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 Global Region 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 Region” 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 5000/5000 in Business Volume generated in the Asia-Pacific Region and receive the respective commission in the same weekly commission cycle that the UnFranchise Owner also reaches 5000/5000 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 towards qualifying for the global Management Bonus.

SEC. 19 GLOBAL UNIFICATION

IRC
1. Every Market United Kingdom UnFranchise Owner receives an International Re-Entry Centre (IRC) to expand into the Americas Region. Market United Kingdom UnFranchise Owners expanding into the Americas 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 United Kingdom 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 totalling £115.00 for UnFranchise Owners residing in the United Kingdom prior to earning a commission (this is a one-time only requirement unless at some point the IRC purges).
5. Earning commission: 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, it will flow upline in the Home Region genealogy above the Europe IRC. To better illustrate it, 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.
7. IRC Management Bonuses: An IRC Management Bonus is earned in the same manner as 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 Home 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 and receive the respective commission. Only IRC 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 for the American Region will be granted when any IRC initially reaches 5000/5000 accrued BV. 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 re-entry placement rules until the UnFranchise Owner earns £10,350.00 for UnFranchise Owners residing in the United Kingdom 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 £10,350.00 for UnFranchise Owners residing in the United Kingdom commission criteria in 12-consecutive weekly pay cycles, the equivalent of achieving Professional Coordinator three months in a row.
UGC
1. Unified Global Centre (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 Americas Region, UGC replaces designated business global centre.
2. When the combined BV/IBV reaches and exceeds 5000/5000 in a weekly pay cycle, the excess originated exclusively from the IRC is transferred to the UGC. Only IRC converted volume exceeding 5000/5000 in a weekly pay cycle is accrued to the UGC. Note: Home region BV/IBV never accrues to UGC and the UGC does not earn Management Bonus.
3. All IRC originated BV/IBV exceeding 5000/5000 in a weekly pay cycle accumulates in the UGC. UGC commissions are calculated and paid as per the standard MPCP.

SEC. 20 MARKET UNITED KINGDOM NONPROFIT ORGANISATION (NPO) PROGRAMME

The Market United Kingdom Non-profit Organisation (NPO) Programme is an opportunity for non-profit organisations registered with the Charity Commission or formally recognised as a charity by the HM Revenue & Customs (“HMRC”) to earn royalties based on the purchases made by its supporters at their favourite internet stores via the UK.SHOP.COM website. The programme is only available to non-profit organisations based in the United Kingdom. Any UnFranchise Owner who is eligible to sponsor UnFranchise Owners in the United Kingdom may also sponsor non-profit organisations into the NPO Programme by submitting the NPO Sponsor Agreement duly executed and accompanied by the necessary documents to Market United Kingdom. At this stage, this programme is only available in the UK. It is not available to NPOs registered elsewhere in the European Union.

Qualification:An NPO Web Portal Agreement must be submitted with one of the following documents:
1. An evidence that the NPO has been recognised as a charity by the HRMC or
2. Copy of registration with the Charity Commission.
Acceptance: Upon acceptance of the NPO Programme Agreement by Market United Kingdom, the NPO will be eligible to receive weekly and monthly royalties as described below in the Royalty Payment Plan section.
Royalty Payment Plan: The following policies apply to the Royalty Payment Plan
1. There is no subscription fee or initial order requirement to participate in the NPO Programme. NPOs CANNOT place orders, assign BV or IBV, sponsor UnFranchise Owners or other NPOs, or enrol in the UnFranchise AutoShip programme. Representatives of the NPO do not have to attend any training classes, and NPOs are not required to renew the NPO Web Portal Agreement annually. NPOs do not make any monetary contribution to Market United Kingdom or the sponsoring UnFranchise Owner in consideration for the opportunity to participate in the NPO Programme.
2. All NPO Programme administration is performed by the NPO’s sponsoring UnFranchise Owner. The NPO’s sponsoring UnFranchise Owner is responsible for ensuring that all marketing, promotional and other activities conducted for the benefit of the NPO comply with the policies of Market United Kingdom as set forth in this UnFranchise Manual.
3. The NPO is assigned a unique nine-digit UnFranchise ID and placed in the MPCP sales tracking system according to the placement indicated on the NPO Web Portal Agreement. Also, a Virtual Account is established for crediting accrued Monthly Royalties. The NPO will not receive a 7-digit Rep ID and will not be able to log in to an UnFranchise Business Account. The NPO’s sponsoring UnFranchise Owner will have access to UFMS and will be responsible for managing the NPO’s supporters (Preferred Customers).
4. Market United Kingdom will place two (2) Master UnFranchise Owner entries beneath the NPO’s single Royalty Centre, one (1) on the left and one (1) on the right. Each of these entries will also be assigned a unique nine-digit UnFranchise ID.
5. The NPO will have a Web Portal assigned to it, with a name chosen by the NPO, subject to the approval of Market United Kingdom, where the NPO supporters can shop to generate royalties for the NPO. The BV and IBV from orders placed on the NPO Web Portal will automatically be assigned in rotation to MA-A-002, MA-B-003, MA-A-003, and MA-B-002, in that order. All of the BV and IBV will flow up as usual to upline BDCs and Royalty Centres. The NPO’s sponsoring UnFranchise^® Owner cannot place BV or IBV directly into the NPO Royalty Centre or the MA BDCs.
6. When NPO supporters purchase Market United Kingdom brand products from the NPO Web Portal, a Pound Sterling amount equal to the difference between (a) the purchase price and (b) “UnFranchise Cost” less shipping and handling and any transaction fees will be deposited into the NPO’s Virtual Account to be issued as Monthly Royalties.
7. Weekly Royalties will be generated by accumulated BV and IBV in the NPO’s Royalty Centre banks. BV and IBV payouts and bonuses will be issued with the same criteria as in the Management Performance Compensation Plan (MPCP).
8. Monthly Royalties will be issued for the full balance of the NPO’s Virtual Account at the end of each month as long as the £15.00 minimum payment threshold is met. If the £15.00 threshold is not met, then the balance carries over to the next month.
9. NOTE: The NPO does not count as a personally sponsored or qualified UnFranchise Owner for the sponsoring UnFranchise Owner, and NPOs cannot re-enter or be assigned more than one NPO Royalty Centre.