Chapter 8: Management Performance Compensation Plan (MPCP)

SEC. 1 ORGANIZATIONAL STRUCTURE

Each Business Development Center (BDC) has two sides. Each side is a sales and distribution organization or network structure in the Market Malaysia UnFranchise Business Development System.

Business Development Center Defined: A Business Development Center is an operational establishment set up within Market Malaysia’s computerized organization tracking system. Each organization 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, etc.).
Additional Business Development Centers: Additional BDCs are established either on the left or right side of a previously established BDC.

SEC. 2 INITIAL PARTICIPATION REQUIREMENTS

To participate in Market Malaysia’s MPCP, an individual (with the assistance of his/her sponsor) must complete the Independent UnFranchise Owner Application and Agreement and submit it. The Application and Agreement may be submitted to Market Malaysia by walk-in or mail (faxes are unacceptable) for entry into the corporate computer database or by completing the sign-up process online, thereby establishing one’s BDC(s). Note: Sponsors should sign up new UnFranchise Owners online only to ensure, that new UnFranchise Owner will not be entered improperly into the Market Malaysia computer database. If they sign-up online, they must print a copy of the completed application and send it to Market Malaysia. The hard copy application (including the terms and conditions) must be signed and sent, along with a copy of the applicant’s Malaysia National Identity Card, if a Malaysia citizen, or if a Permanent Resident, a copy of Permanent Resident Card, copy of original passport and copy of legal document for Permanent Resident (if any) to the Kuala Lumpur office or Penang Training Center of Market Malaysia within ten calendar days of the date of submission of the online application. If Market Malaysia does not receive the signed hard copy of the application and related documents within the ten-day time limit, the UnFranchise Business will be voided.

Sales Representative: Individuals who fail to submit the subscription fee enter Market Malaysia as Sales Representatives and cannot participate in the MPCP for the purposes of earning commissions and leadership bonuses. Sales Representatives may begin participating in the MPCP at a later time, if they submit the Joining Fee and the Subscription Fee for the first year 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 Joining Fee and the Subscription Fee for the first year in order to participate in the MPCP and earn commissions and leadership bonuses.
1. An UnFranchise Owner must have attended a Market Malaysia-sponsored New UnFranchise Owner Training (NUOT) within the “NUOT Grace Period” in order to: (1) count as being sponsored and (2) obtain the sponsorship rights towards and/or for activation purposes in the MPCP.
2. If an UnFranchise Owner does not complete the NUOT within the “NUOT Grace Period,” the UnFranchise Owner’s sponsor will lose his/her sponsorship rights for this UnFranchise Owner. The sponsorship rights for this UnFranchise Owner of the UnFranchise Owner’s sponsor may be re-activated once this UnFranchise Owner completes the NUOT at a later date. The sponsorship takes effect on the reactivation date.
3. New UnFranchise Owners may sponsor other new UnFranchise Owners during their “NUOT Grace Period.” This “NUOT Grace Period” shall be defined as 28 calendar days after the Friday following the payment date of the Joining Fee and the Subscription Fee for the first year. If the sponsoring new UnFranchise Owner does not complete the corporate-sponsored NUOT within the 28 days allowed, then sponsorship rights towards/for activation purposes and rights to commission earned will be forever forfeited.

SEC. 3 MALAYSIA IDENTIFICATION CARD REQUIREMENTS

All new applicants must submit a front and back copy of their Malaysia National Identity Card or Permanent Resident card within 10 calendar days of the application start date to avoid cancellation of the UnFranchise Business. If your Malaysia National Identity Card or Permanent Resident card isn’t received within 10 calendar days, your account will be cancelled and all BV/IBV will be removed (if applicable).

If you wish to reapply within 270 days of cancellation, you must be under the same sponsor and will remain in the same genealogy line as the initial application.

SEC. 4 A PERSON MAY BE INVOLVED IN ONE UNFRANCHISE BUSINESS ONLY

A person may be involved in one Market Malaysia 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. Market Malaysia policy prohibits the use of an “Alter Ego” in order to circumvent this restriction, including without limitation, Alter Ego’s created using any of the following: (A) trade names, (B) assumed names, (C) identification numbers, (D) agreements to operate a UnFranchise Business, (E) a spouse or significant other, (F) family members, or (G) business or non-profit entities.

SEC. 5 PLACEMENT OF BUSINESS DEVELOPMENT CENTERS

Business Development Centers 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 organization. The new UnFranchise Owner’s sponsor specifies this on the walk-in/mailed Independent UnFranchise Owner Application and Agreement or during the online sign-up process placement of BDCs of new UnFranchise Owners.

New Business Development Centers: New BDCs may be established only in available locations, not previously occupied or linked. All Sales Representatives and UnFranchise Owners start with three BDCs when they establish their UnFranchise Businesses.

All new applicants must submit a copy of their Malaysia National Identity card or Permanent Resident card within 10 calendar days of their application start date to avoid cancellation of the UnFranchise Business.
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 UnFranchise Owner Application and Agreement for newly sponsored UnFranchise Owners will result in unlinked BDC(s). Any BDC(s) linked to an unlinked BDC will also be unlinked.
1. To identify unlinked BDCs, search 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 as soon as possible to UnFranchise Services Department using the Placement or Linkage Correction Form via fax or mail. Only the sponsor or the unlinked UnFranchise Owner may sign the linkage correction form.

SEC. 6 INITIAL QUALIFICATION REQUIREMENT

Qualifying a BDC will permit accrual of Group Business Volume (GBV) generated by UnFranchise Owners and Sales Representatives in the respective BDC’s downline. Accrued GBV will be applied towards earning commissions and leadership bonuses for the qualified BDC.

Personal Business Volume Created: Both UnFranchise Owners and Sales Representatives create Personal Business Volume (PBV) by ordering products at UnFranchise Owner Cost for retail sale to the end consumer and/or Personal Consumption.
Qualification: An UnFranchise Owner’s BDCs shall be considered qualified in Market Malaysia’s MPCP upon meeting three criteria: (1) accumulating 200 PBV credits for product orders assigned to that respective BDC; (2) being linked properly and (3) paying the Joining Fee and the Subscription Fee for the first year.
1. Personal Business Volume created by Sales Representatives will count towards qualifying their BDC(s) should Sales Representatives elect to change their status to UnFranchise Owner by submitting the joining fee and subscription fee at a later date. All PBV created by Sales Representatives will be recognized as GBV 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 PBV, until he/she elects to change his/her status to UnFranchise Owner by submitting the subscription fee and joining Fee.
3. Personal Business Volume created by UnFranchise Owners will count towards qualifying their BDC(s) as assigned on the product order form.
4. The Personal Business Volume created by UnFranchise Owner will be recognized as GBV for all qualified UnFranchise Owners in the creating UnFranchise Owner’s upline.
Qualification Date (Q-date): At the time, an UnFranchise Owner’s initial BDC becomes qualified, 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 GBV 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 PBV credit for product orders assigned to that center, if the BDC is linked properly and the UnFranchise Owner has paid the subscription fee and joining Fee.
2. A Sales Representative who has accumulated 200 PBV 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 joining fee and subscription fee are received by Market Malaysia and entered into the corporate data base, 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 Subscription Fee. See Annual Subscription.
4. An UnFranchise Owner’s Q-date may be obtained from the UnFranchise Management System. 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.
Q-date Periods Defined:
1. Weekly Commission Cycle: All commission weekly pay cycles begin Saturday and end on Friday.
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 January 12, 2018, then the monthly Q-date for July of 2018 will be July 13, 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 January 12, 2018, then the monthly Q-date for August of 2018 will be August 17, 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 were August 31, 2018, then the monthly Q-date for November of 2018 would be November 30, 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. For example, if the original Q-date were August 31, 2018, the monthly Q-date for September of 2018 would be October 5, 2018.
3. Quarter (Three-Q-date Period or Three-Start-Date Period): Market Malaysia 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 Malaysia 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 were January 12, 2018, then the first quarter (or three-Q-date period) would have ended on April 13, 2018. The second quarter would have begun April 14, 2018, and ended July 13, 2018.
Unlinked Business Development Center: All assigned Business Volume (BV) to unlinked BDCs shall also be unlinked. The qualifying volume for a BDC will not result in this center receiving a Q-date until linkage has been corrected, because UnFranchise Owners cannot accrue any GBV until they have met all three criteria for qualification. Upon proper linkage of the unlinked UnFranchise Owner, unlinked BV shall be credited for the date of the original order; however, the BV cannot be credited as accrued GBV for qualified upline UnFranchise Owners until linkage has been properly corrected. Once the placement is corrected, GBV will begin to flow and accrue; however, some UnFranchise Owners’ upline may no longer be able to count the re-linked BV 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 only unlinked because of an improper linkage situation, 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 Malaysia 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 Malaysia’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 Malaysia’s data base 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. 7 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 and an associated retail profit or ongoing BV from an initial sale having a retail profit where the respective UnFranchise Owner ID number is the paying ID number or the purchasing customer is a registered PC of the respective UnFranchise Owner/Sales Representative.

Example: The BV created could be from an UnFranchise Owner/Sales Representative order in their UnFranchise Business Account, an order from a PC on MY.SHOP.COM, or be part of a “package” sale where the initial part of the sale has BV value and retail profit; however, 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 and GIBV flushed (erased to 0) if all requirements listed below are not satisfied.

Sales Representatives and/ Un-qualified UnFranchise Owners (Individuals Electing Not to Earn Commissions/Bonuses through the MPCP).
1. Sales Activity: Must have product orders placed through the UnFranchise Business Account or fulfilled by their UnFranchise Autoship totaling 150 PBV in activity assigned to their personal BDC-001s (their UnFranchise Owner 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 Malaysia each quarter, accompanied by a minimum of two (2) retail sales receipts totaling a minimum of RM800. 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 RM240 of products used/consumed by the respective Sales Representative’s or Unqualified UnFranchise Owner’s household may be used as part of the RM800 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 Malaysia 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 Malaysia 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 their physical address (address of residence) or complete phone number for acceptance (address must include a valid zip/postal 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’s “Home Region” or through MY.SHOP.COM are considered valid receipts.
  5. Market Malaysia will periodically conduct a random audit of retail receipts for authenticity. Invalid receipts will result in corrective actions being initiated and may disqualify the Form 1000.
3. Contractual Relationship: Sales Representatives and Unqualified UnFranchise Owner must complete and submit an Annual Subscription Form in accordance with the Subscription procedure. See Annual Subscription.
  1. Failure to submit the Annual Subscription Form will result in PBV and PIBV being purged (erased to zero), their access to the UnFranchise Business Account (“Back Office”) denied, and continued authorization to sell and represent Market Malaysia’s exclusive products terminated.
  2. For Un-Qualified UnFranchise Owners who submit the Annual Subscription Form without the Subscription 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 the UnFranchise Business Account or fulfilled by their UnFranchise Autoship totaling a minimum of 150 BV in activity assigned to their personal BDC-001 (their UnFranchise Owner 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 totaling 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.
  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 have product orders totaling 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 Malaysia each quarter for BDC-001, accompanied by a minimum of two retail sales receipts totaling a minimum of RM800. Each 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. A Form 1000 with accompanying receipts must be submitted only one time for every other BDC (i.e., 002, 003, 004, 301, etc.) before those BDCs are eligible to earn commissions, as long as the UnFranchise Owner never purges. The Form 1000 will not auto-populate nor auto-submit to meet this requirement but must be prepared and submitted online.
  2. No more than RM240 of products personally used/consumed by the respective UnFranchise Owner’s household may be used as part of the RM800 sales total. An UnFranchise Owner’s purchase under their Personal Preferred Customer ID# is considered personal consumption. NOTE: The requisite minimum sales documentation establishing sales to end consumers who are not involved in the Market Malaysia MPCP is of vital importance. The UnFranchise Owner is ultimately responsible to ensure the validity of the sales documentation.
  3. For UFMS subscribers, the Form 1000 is intended to automatically populate with qualifying receipts and automatically submit to Market Malaysia to meet this requirement for the BDC-001 from sales where the paying ID is a Preferred Customer. Sales receipts may also be manually entered and submitted to the Form 1000. When sales receipts and/or the Form 1000 is manually submitted, all sales documentation must be personally completed and submitted by the UnFranchise Owner.
  4. Submitted receipts must contain the date of sale, the customer’s first and last name and either their physical address (address of residence) or complete phone number for acceptance (addresses must include a valid zip/postal code). Receipts not containing complete and accurate information will be considered invalid.
  5. Only sales receipts from products sold in the UnFranchise Owner’s “Home Region” or through MY.SHOP.COM are considered valid receipts.
  6. Market Malaysia will periodically conduct a random audit of retail receipts for authenticity. Invalid receipts will result in corrective actions procedure, being initiated and may disqualify the Form 1000.
3. Contractual Relationship: An UnFranchise Owner must complete and submit an Annual Subscription Form with or without a Subscription fee in accordance with the Subscription procedure. See Annual Subscription.
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 re-qualified 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 re-qualified. The original Q-date received shall stay in effect, except for purges due to non-Subscription (see Annual Subscription).
  2. If an UnFranchise Owner purges for any reason, valid Form 1000(s) must be resubmitted for each BDC in order to be eligible to earn commissions for that respective BDC. Only the BDC-001 could requalify through an auto-populated Form 1000.

SEC. 8 270-DAY RULE AND SALES ACTIVITY

UnFranchise Owners/Sales Representatives who have been inactive for 270 calendar days CANNOT retain their original/previous BDC position/placement within the organization. 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-subscription, the 270 day counter will not be reset unless a Late Subscription 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 Subscription Form, Late Subscription 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 Sign-Up Wizard and submit an Independent 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 tax identification number as their previous UnFranchise Business. The same line of sponsorship means any placement in the genealogy under their previous BDCs.
UnFranchise Owners/Sales Representatives Inactive ≥ 270 Days but < 1,000 Days Reapplying Different Line or Different Name/ID#:
1. All UnFranchise Owners/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 notarized letter, signed by the reapplying UnFranchise Owner, explaining why they want to change their line of sponsorship or name/ID#, to the attention of the Field Compliance Department, by email to fieldcompliance@marketamerica.com, or by fax to 1-336-605-0041.
2. In the sole discretion of Market Malaysia (or its subsidiaries/affiliated family of international companies), an application of a former UnFranchise Owner/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 guaranty 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 (SAUFO) program was utilized 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 or 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 organization receiving credit from this unethical reapplication will have all BV/IBV resulting from this activity removed, and all commissions generated from this BV/IBV will be reversed (See Commission Reversal). UnFranchise Owners placed under the Unauthorized UnFranchise Owner will be moved to the original line of sponsorship OR to an appropriate placement determined at the sole discretion of the company. BDCs unrelated to the Unauthorized 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 against the 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 a spouse/significant other, family member, a different ID, a business entity or other third party to reestablish an UnFranchise Business in another line of sponsorship or by arranging for someone to establish an UnFranchise Business to be used as a passive “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 will be reversed. Passive shall be defined as not engaging in the customary, and in some cases required, activities of legitimate UnFranchise Owners including retailing, meeting sales requirements, sponsoring, attending meetings, attending training classes, completing certification requirements, trainings, etc. In addition, if an UnFranchise Owner pays with their own credit card or other form of payment to meet the sales of an alter ego, and thus keeps the alter ego active and/or qualified, this is also considered passive. 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 he/she is effectively a new UnFranchise Owner in terms of the MPCP.
Monthly Service Charge: UnFranchise Owners inactive for 270 days who have a credit on their Market Malaysia 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 Malaysia, U.S., Canada, Taiwan, Hong Kong, Australia, United Kingdom and Singapore. The monthly service charge for each country-specific account is as follows: S$25.00 for Singapore accounts; HK$150.00 (Hong Kong funds) for Hong Kong accounts; US$20.00 (U.S. funds) for U.S. accounts; CAN$28.00 (Canadian funds) for Canadian accounts, NT$640 (Taiwan funds) for Taiwan accounts, AUD$30.00 (Australian funds) for Australian accounts, £12.75 (UK funds) for United Kingdom accounts and RM80 for Malaysian accounts.

SEC. 9 ANNUAL SUBSCRIPTION

Each term of the Independent UnFranchise Owner Application and Agreement (IUA&A) ends on the last business day of an UnFranchise Owner/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. In order to extend the term of the IUA&A, UnFranchise Owners and Sales Representatives must renew on an annual basis by submitting an Annual Subscription Form by the last business day of the UnFranchise Owner/Sales Representatives’ Start Month.

Sales Representatives: A Sales Representative must complete and mail the paper Annual Subscription Form before the last business day of the start month.
1. There is no required subscription fee for Sales Representatives; however, Sales Representatives may not participate in the MPCP.
2. Sales Representatives who do not timely submit Annual Subscription Form will have their access to the UnFranchise Business Account suspended; however, an IUA&A with “Sales Representative, Late Subscription” selected may be submitted and access to the UnFranchise Business Account will be reinstated.
  
  NOTE: Upline UnFranchise Owners should be aware that if the Annual Subscription 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) even if other requirements are met for accrual.
UnFranchise Owners: An UnFranchise Owner must complete and mail the paper Annual Subscription Form and the Fee or enroll in the Auto Subscription Program in the UnFranchise Business Account. Each UnFranchise Owner must pay his or her own Fee.
1. An UnFranchise Owner who does not timely submit Annual Subscription Form 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 the UnFranchise Business Account will be suspended.
2. An UnFranchise Owner who submits the paper Annual Subscription Form without paying the Fee will have all accrued GBV and GIBV 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 PBV and PIBV will not be purged. The reduction to Sales Representative status will cause the quarter (on which quarterly Minimum Activity Requirements due dates are based) to no longer be based on the initial Q-date, but on the Start Date (see Minimum Activity Requirements).
3. An UnFranchise Owner who does not timely renew must submit an IUA&A with “UnFranchise Owner, Late Subscription” selected and pay a full subscription fee to regain UnFranchise Owner status. A late Subscription does not alter the UnFranchise Owner’s initial placement and sponsor information, but the UnFranchise Owner will need to re-qualify and will receive a new Q-date after meeting all qualification requirements. Another First-Quarter Grace Period applies (see Minimum Activity Requirements and Exercising the Monthly Accrual Option).
4. If Annual Subscription Form submitted timely but with a payment for Subscription fees which cannot be accepted by Market Malaysia for any reason, the form and fees will be returned to the UnFranchise Owner unprocessed. In this case the UnFranchise Owner must submit another Annual Subscription Form and the proper Subscription fee, by the Annual Subscription deadline.
5. Auto Renewal Subscription
  1. To exercise the Auto Subscription Program, you must elect to “Opt In” to the program in your UnFranchise Business Account. An UnFranchise Owner may Opt In to the program at initial sign-up or anytime thereafter, except that access to the Auto Subscription Program is blocked five days prior to the first day of the Start Month. During this period, the UnFranchise Owner can neither Opt In or cancel the Auto Subscription Program because the subscription processing has already begun.
  2. Primary and Secondary credit cards can be designated on the credit card screens in the UnFranchise Business Account.
    1. The primary credit card will be charged the Annual Subscription 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 annual 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 Subscription Fee.
    4. If all of the above attempts to charge the Annual Subscription Fee fail, then the UnFranchise Owner will need to manually renew by sending in a paper Annual Subscription Form along with the Annual Subscription Fee, before the last business day of their Start Month.
  3. UnFranchise Owners can set up Auto Subscription for their Asia-Pacific Global operation online as well by going to that country’s UnFranchise Business Account. Annual Subscription fees are non-refundable.

SEC. 10 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 Malaysia, both by the appropriate dates. This Monthly Accrual Option may be exercised by using the UnFranchise AutoShip Program or placing manual orders for the minimum amount of PBV and/or the UFMS. NOTE: UnFranchise Owners must pay for their own UFMS.

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”) in which the UnFranchise Owner is qualified. Example: if an UnFranchise Owner receives the equivalent of RM1,200 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 Region” 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 UFMS 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 UFMS is not placed within the first three-Q-date period, then all GBV accrued by the UnFranchise Owner’s qualified BDC(s) will be flushed (erased to zero).
  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 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 Business Volume (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 UFMS 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 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 GBV through the end of the monthly Q-date period for which the Monthly Accrual Option is not exercised will flush (reset to zero); 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 GBV will flush (reset to zero) again at the end of that monthly Q-date period, and so on.
Active Life Span of Group Business Volume: Accrued GBV shall have a 365-day life span from the date of the order. The life span 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 payout of commissions.

SEC. 11 ACTIVATING A BUSINESS DEVELOPMENT CENTER (ACTIVATION)

A BDC must be activated to earn commissions and Leadership bonuses, which is accomplished by the UnFranchise Owner sponsoring at least one qualified UnFranchise Owner who has completed a corporate sponsored New UnFranchise Owner Training (NUOT) placed in the left downline of the BDC and sponsoring at least one qualified UnFranchise Owner who has completed a corporate sponsored New UnFranchise Owner Training (NUOT) placed in the right downline of the BDC.

Minimum Requirements and Maintenance: For a BDC to earn commissions and leadership bonuses, at least one personally sponsored and qualified UnFranchise Owner who has completed a corporate sponsored New UnFranchise Owner Training (NUOT) must be in the left and right downline. Failure to maintain at least one personally sponsored and qualified UnFranchise Owner who has completed a corporate sponsored New UnFranchise Owner Training (NUOT) on both the left and right side of a BDC will result in the sponsoring UnFranchise Owner forfeiting commission payouts when required volumes are reached. No retroactive commission will be issued.
Independent 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. A newly sponsored and qualified UnFranchise Owner will have 28 days to complete the corporate sponsored New UnFranchise Owner Training (NUOT) or the sponsoring UnFranchise Owner will lose sponsorship rights and the new UnFranchise Owner will not count towards activation. The sponsorship rights for this new UnFranchise Owner of the UnFranchise Owner’s sponsor may be re-activated once this new UnFranchise Owner completes the NUOT at a later date. The sponsorship takes effect on the reactivation date.
3. Qualified UnFranchise Owners operating from the same address as any existing UnFranchise Owner, even if the company has approved the UnFranchise Business, will not count towards meeting the activation requirement for any UnFranchise Owner.
4. BDCs placed from re-entry authorization or other acquired BDCs will not count towards meeting the activation requirement.
5. Non-Profit Organization (NPO) UnFranchise Businesses will not count towards meeting the activation requirement.
6. Fraudulent, bogus or fabricated sponsorship in order to satisfy 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) identification numbers, (d) agreements to operate an UnFranchise Business, (e) a spouse or significant other, (f) family members, (g) business or non-profit entities, or (h) 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 zero);
  3. The violating UnFranchise Owner may be subject to the Corrective Action Procedure.

SEC. 12 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 Malaysia a current, valid Form 1000, accompanied by a minimum of two sales receipts totaling RM800, to receive any commissions, including the UnFranchise Owner’s first commission payment. 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 issued or through the end of the current quarter if the commission payment 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 Personal Business Volume totals, but also any commission payments on hold for BDC-001 for failing to meet the Form 1000 requirement will be forfeited.
Coordinators (UnFranchise Owners Who Have Earned a RM1,200 Commission): In addition to the Form 1000 requirement, Coordinators shall complete and submit to Market Malaysia an Executive Coordinator Qualification and Application (Form MY1001) and an Executive Coordinator Acknowledgement and Agreement (Form MY925) within 28 days of qualifying for their first RM1,200 commission. Failure to comply will result in the next commission payment being held for four consecutive weekly commission cycles from the week the commission payment would have otherwise been issued and if the requirement has still not been met by the end of this hold period, the commission will be forfeited. Completion and submission of Form MY1001 and Form MY925 shall be performed initially, and thereafter this requirement shall be satisfied annually by submitting the Annual Subscription Form.
Executive Coordinators (UnFranchise Owners Who Have Earned a RM2,400 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 commission requirements:
1. Executive Coordinators must complete a New UnFranchise Owner Training, a Basic 5 Training and an Executive Coordinator Certification Training and pass the test (passing grade) within 28 days of qualifying for their first Executive Coordinator RM2,400 commission. Failure to comply will result in the next commission payment being held for four consecutive weekly commission cycles from the week the commission payment would have otherwise been mailed, 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. 13 MANAGEMENT PERFORMANCE COMPENSATION PLAN (MPCP) PAYOUT CRITERIA

Qualified, active and activated BDCs participating in the MPCP shall be eligible to earn commission and Leadership bonuses weekly on Group Business Volume (GBV) generated by UnFranchise Owners in their downline organizations.

Weekly Cycle: Weekly commission cycles calculating accrued GBV from product orders placed, correctly assigned and processed shall run from 12:00 a.m. on Saturday to 11:59 p.m. of the following Friday (excluding grace period provided to UnFranchise Management System (UFMS) members using the online ordering process). Note: The Friday-to-Friday commission cycle only refers to the weekly cycle by which Market Malaysia determines the qualification of commissions; it does not refer to the time frame in which Market Malaysia processes those commissions.
1. 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 week.
2. 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 PM will count towards the current period.
  
  Note: If Market Malaysia determines that the UFMS is not functioning correctly from corporate office for an unacceptable amount of time, UFMS members have until 1:59 p.m. on Saturday to fax orders using an 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 Malaysia. If Market Malaysia determines that there was not enough downtime to warrant an extension past the 11:59 p.m. deadline for Online Electronic Ordering, then any orders received by Market Malaysia after 11:59 p.m. will be credited for the following week.
3. Weekly commissions and leadership bonuses shall be paid on group business volume totals, based on final posting and reconciliation figures, two weeks from the week-ending Friday of that particular commission cycle.
Weekly Compensation Criteria and Management Parameters:
1. RM1,200 Commission: for accruing equal to or greater than 1,200 GBV on the left side and 1,200 GBV on the right side of the respective BDC.
2. RM1,200 Commission: for accruing equal to or greater than 2,400 GBV on the left side and 2,400 GBV on the right side of the respective BDC. This includes the previous 1,200 GBV.
3. RM1,200 Commission: for accruing equal to or greater than 3,600 GBV on the left side and 3,600 GBV on the right side of the respective BDC. This includes the previous 2,400 GBV.
4. RM2,400 Commission: for accruing equal to or greater than 5,000 GBV on the left side and 5,000 GBV on the right side of the respective BDC. This includes the previous 3,600 GBV.
5. RM2,400 Leadership Bonus: When having a BDC on the left side and a BDC on the right side each receive a RM2,400 commission for reaching the 5,000/5,000 GBV compensation criteria, in the same weekly commission cycle that the respective BDC earns a RM2,400 commission for reaching the 5,000/5,000 GBV compensation criteria. Note: All three commission payments must meet all requirements for release at the same time. If any payment that would otherwise contribute to a Leadership Bonus is held for any reason (see Minimum Commissions Requirements), then that held commission will not be eligible to contribute towards any Leadership 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 toward qualifying for Leadership Bonuses.
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 zero), and starts the commission cycle over again the next week.
7. Any GBV in excess of the 5,000 GBV 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 Leadership bonuses one BDC may earn in a weekly commission cycle shall be RM8,400.
9. Market Malaysia reserves the right to limit the maximum allowable payout for any weekly pay cycle under the MPCP to 65 percent of total BV credited for such week.
10. Commission payments will be made by direct deposit to the bank account on file with Market Malaysia, as registered at the UnFranchise Owner’s UnFranchise Business Account. UnFranchise Owner would need to be able to substantiate that the account details provided belong to the UnFranchise Owner’s Business Account.
11. 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 RM144 service fee will be charged against the funds deposited and another ACH deposit will be made to an account properly registered at the UnFranchise Owner’s UnFranchise Business Account. UnFranchise Owner would need to be able to substantiate that the account details provided belong to the UnFranchise Owner’s Business Account.
12. Market Malaysia may withhold from any amounts otherwise payable to UnFranchise Owner under or pursuant to this Section such Federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation. (i.e. From 1 January 2022, Market Malaysia is required to withhold the withholding tax at the rate of 2% on payments made to Unfranchise Owners who are individual residents and who have received more than RM100,000 in the immediately preceding year pursuant to Section 107D of the Income Tax Act, 1967.

SEC. 14 ADDITIONAL/MULTIPLE DEVELOPMENT CENTERS

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 authorization or acquisition of a BDC.

Re-Entry Business Development Centers:
1. An UnFranchise Owner is granted a re-entry authorization the first time and only ONE time per BDC upon receiving a commission for reaching the 5,000/5,000 GBV compensation criteria for the respective BDC within their “Home Region” 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 into learn how to earn additional “Global” BDCs). The re-entry will not be considered valid by Market Malaysia until after the UnFranchise Owner receives the commission payment. Subsequent attainment of the 5,000/5,000 GBV compensation criteria will not authorize 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 Business 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 organization (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 RM2,400 commission) within the MPCP.
  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 RM54,000 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 RM54,000 commission criteria in 12-consecutive weekly pay cycles has been met.
3. Additional BDCs from re-entry must be qualified (200 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 totaling RM800 prior to earning a commission (this is a one-time-only requirement unless at some point the UnFranchise Owner purges).
Acquired Business Development Centers: 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 authorization 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 Malaysia 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 notarized purchase agreement, signed by both the terminating and the purchasing UnFranchise Owners, along with a RM40 per BDC processing fee, attention of the Compliance Department.
  2. Each acquired UnFranchise Businesses 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 fax.
  3. Upon receiving the new identification number, the acquiring UnFranchise Owner must re-qualify each acquired BDC in order to begin accruing GBV in the respective center. 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 Leadership 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 totaling RM800 within 90 days of qualification.
  6. The company must enroll the acquired BDC-001 in the UnFranchise AutoShip Program within 28 days from the issuance of the new ID number.
  7. All activity requirements shall apply to each acquired BDC or groups of BDCs (in the case of acquiring a an UnFranchise Business) separate and distinct from BDCs owned by initial entry or owned through re-entry authorization. This shall include requirements relative to qualification, activation, management, Annual Subscription, UFMS membership, etc.
  8. Please allow 10 to 15 business days from the date of written company approval for Market Malaysia to set up an acquired BDC. Do not place UnFranchise Owners downline until this process has been completed in the computer system.

SEC. 15 MARKET MALAYSIA'S LADDER SYSTEM OF ACHIEVEMENT

Field management levels (UnFranchise Levels) may be earned through participation in the Management Performance Compensation Program. UnFranchise Owners attaining new field management (UnFranchise Levels) will be recognized in Market Malaysia’s UnFranchise Owner Magazine. Field management (UnFranchise) Level requirements are as follows.

Level 1 — UNFRANCHISE OWNER

Complete Independent UnFranchise Owner Application and Agreement
Submit Joining Fee and Annual Subscription Fee
Submit a copy of your Malaysia National Identity or Permanent Resident card

Level 2 — QUALIFIED UNFRANCHISE OWNER

Complete Level 1
Place and accumulate 200 PBV in orders in BDC-001
Maintain proper linkage in the Market Malaysia genealogy

Level 3 — COORDINATOR (Blue Pin)

Complete Level 2
Develop two sales and distribution organizations, one on the left and one on the right side of a BDC, each accruing 1,200 GBV in a weekly commission cycle
Receive RM1,200 commission payment

Level 4 — EXECUTIVE COORDINATOR (Blue Pin with One Diamond)

Complete Level 3
Develop two sales and distribution Organizations, one on the left and one on the right side of a BDC, each accruing 5,000 GBV in a weekly commission cycle
Receive RM2,400 commission payment

Level 5 — MASTER COORDINATOR (Blue Pin with Two Diamonds)

Complete Level 4
Receive RM2,400 leadership bonus

Level 6 — SENIOR MASTER COORDINATOR (Blue Pin with Two Diamonds and One Sapphire)

Complete Level 5
Received RM12,000 in commissions and leadership bonuses within 4 consecutive weekly commission cycles.

Level 7 — PROFESSIONAL COORDINATOR (Blue Pin with Three Diamonds)

Complete Level 5
Receive RM18,000 in commissions and leadership bonuses within four consecutive weekly commission cycles

Level 8 — SUPERVISING COORDINATOR (Blue Pin with Four Diamonds)

Complete Level 5
Receive RM30,000 in commissions and leadership bonuses within four consecutive weekly commission cycles

Level 9 — NATIONAL SUPERVISING COORDINATOR (Blue Pin with Five Diamonds)

Complete Level 5
Receive RM40,000 in commissions and leadership bonuses within four consecutive weekly commission cycles

Level 10 — EXECUTIVE SUPERVISING COORDINATOR (Blue Pin with Six Diamonds)

Complete Level 5
Receive RM60,000 in commissions and leadership bonuses within four consecutive weekly commission cycles

Level 11 — DIRECTOR (Onyx with One Diamond)

Complete Level 5
Receive RM72,000 in commissions and leadership bonuses within four consecutive weekly commission cycles

Level 12 — EXECUTIVE DIRECTOR (Onyx with Two Diamonds)

Complete Level 5
Receive RM100,000 in commissions and leadership bonuses within four consecutive weekly commission cycles

Level 13 — FIELD VICE PRESIDENT (Onyx with Three Diamonds)

Complete Level 5
Receive RM144,000 in commissions and leadership bonuses within four consecutive weekly commission cycles

Level 14 — EXECUTIVE FIELD VICE PRESIDENT (Onyx with Four Diamonds)

Complete Level 5
Receive RM180,000 in commissions and leadership bonuses within four consecutive weekly commission cycles

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

Complete Level 5
Receive RM252,000 in commissions and leadership bonuses within four consecutive weekly commission cycles

Level 16 — FIELD PRESIDENT (Onyx with Six Diamonds)

Complete Level 5
Receive RM320,000 in commissions and leadership bonuses within four consecutive weekly commission cycles

Level 17 — INTERNATIONAL FIELD PRESIDENT (Platinum with One Diamond)

Complete Level 5
Receive RM400,000 in commissions and leadership bonuses within four consecutive weekly commission cycles

Level 18 — INTERNATIONAL FIELD CHAIRMAN (Platinum with Two Diamonds)

Complete Level 5
Receive RM500,000 in commissions and leadership bonuses within four consecutive weekly commission cycles

Level 19 — SENIOR INTERNATIONAL FIELD CHAIRMAN (Platinum with Three Diamonds)

Complete Level 5
Receive RM600,000 in commissions and leadership bonuses within four consecutive weekly commission cycles

SEC. 16 MASTER UNFRANCHISE OWNER PROGRAM

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. Have a subscription for the UnFranchise Management System (UFMS);
2. Purchase a total of 1,500 BV of product for the respective quarter;
3. Generate 200 IBV worth of Partner Store purchases between you and your customers from partner store purchases, the company exclusive products or any transaction that creates IBV.
4. Personally sponsor a minimum of one (1) qualified and active UnFranchise Owner;
5. For the respective quarter, attend or conduct:
  1. One (1) New UnFranchise Owner Training; and
  2. One (1) Basic Five Training;
6. Attend one (1) Executive Coordinator Certification Training per year;
7. Purchase a minimum of three (3) tickets to the next Market Malaysia Annual Convention or Leadership School; and
8. Earn a minimum of RM3,600 in BV and/or IBV commissions per quarter and/or complete a Basic 5 Diagnostic Test, in which the UnFranchise Owner scores greater than or equal to 50 percent.
All qualification criteria must be satisfied within the calendar quarter in which the UnFranchise Owner is applying. To complete the MUFO form, please log on to: UnFranchise.com > My Organization > Reports > Management > Master UFO Program. You must enter and save your training information by the last day of the quarter that you are participating in. These deadlines are March 31 for Q1, June 30 for Q2, Sept 30 for Q3 and Dec 31 for Q4. 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.

SEC. 17 INTERNET BUSINESS VOLUME COMPENSATION PLAN (IBVCP)

The Internet Business Volume (IBV) program provides an opportunity for Market Malaysia UnFranchise Owners to earn an additional RM6,000 per BDC per week, in addition to the standard MPCP, while maximizing and leveraging the same sales and distribution organization. IBV is generated from the purchase of products and services from Market Malaysia and its Partner Stores, these transactions include ordering products and services from MY.SHOP.COM, purchasing products having IBV through Market Malaysia’s online as well as walk in partner stores. 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 Malaysia’s MPCP results in a potential total pay out per BDC of RM14,400 per week.

NOTE: UnFranchise Owners will not earn IBV on their or their Preferred Customer’s purchases where (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 Malaysia; (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 Malaysia’s policies; (e) a particular Partner Store changes or discontinues its affiliate relationship with Market Malaysia; or (f) a Partner Store decides to withhold payment to Market Malaysia for any reason, including, but not limited to, use of coupon codes.

Ordering IBV Products: All products, goods and services having IBV will be promoted and marketed via MY.SHOP.COM. Products, goods and services having IBV that are sold directly by Market Malaysia will appear the Market Malaysia price list and may be ordered online.

Products, goods, and services having IBV from online Partner Stores may only be ordered and sold through these Partner Stores’ links to MY.SHOP.COM. When an UnFranchise Owner or their Preferred Customers shop at a Market Malaysia’s online Partner Store, the UnFranchise Owner will be able to earn their IBV based on their purchases, and their Preferred Customers will be able to earn Cashback.
Participation in IBV Program: 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. Designation of Initial Participating Internet Business Development Center (IBDC): To participate in the IBV program, qualified and active UnFranchise Owners must designate a currently existing personal BDC 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 organizations of this designated personal BDC. Initially UnFranchise Owners may only designate one personal BDC to participate in the IBVCP. UnFranchise Owners must visit their UnFranchise Business Account and register to designate their initial personal BDC for participation in the IBVCP.
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 Authorization 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 organization 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 Pay out Cycle (i.e., earns an IBV commission payment for accruing at least 5,000 GIBV from the left organization and 5,000 GIBV from the right organization), UnFranchise Owners are authorized 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: When UnFranchise Owners register their personal BDC for initial participation, they need to register two BDCs for automatic assignment of IBV for orders placed online. 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: Accrual of GIBV begins for the week ending Friday in which UnFranchise Owners first designate their personal BDC for participation in the IBVCP. To continue accruing GIBV towards IBV commission payout criteria, UnFranchise Owners must meet the minimum activity requirements 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 bad flush in the standard MPCP for not exercising the BV Monthly Accrual Option will result in the same within the IBVCP; however, a bad 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 order the UnFranchise Management System (UFMS) monthly by the appropriate monthly Q-date.
  2. 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); 20 IBV for Level 2 (UnFranchise Owners who have earned their first IBV commission); and 30 IBV for Level 3 (UnFranchise Owners who have earned an IBV commission 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 pay out 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 RM1,200 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.
  3. The maximum amount of IBV for select Market Malaysia products and/or Shopping Annuity Brand products that will be permitted per monthly Q-date period is 150 IBV.
  4. The UnFranchise Owner must complete the UnFranchise Setup.
7. In order to receive an IBV commission payment: The UnFranchise Owner must be activated in accordance with the standard MPCP requirement.
8. 28-Day Grace Period: For any change in status that causes UnFranchise Owners' 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 an IBDC 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 an IBDC is designated as participating in the IBVCP, and the upcoming monthly Q-date is more than 28 days from the date the IBDC 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 payment 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 2; 30 IBV for Level 3) 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 IBV 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 IBV (20 IBV for Level 2; 30 IBV for Level 3) by the next monthly Q-date to continue to accrue GIBV month to month.
9. 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 zero); 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 zero) again at the end of that monthly Q-date period, and so on.
10. Active Life Span of Group Internet Business Volume: Accrued GIBV 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 549day. GIBV greater than 548 days old shall no longer count towards the payout of commissions.

SEC. 18 REGION UNIFICATION

In order to simplify the international expansion, countries have been grouped in Regions.

Regions:
1. Americas Region: The United States, Canada, Mexico and EMP countries in Latin America are unified in one single region, the Americas Region.
2. Asia-Pacific Region: Malaysia, Hong Kong, Taiwan, Australia, Singapore and EMP countries in the Asia-Pacific Region are unified in one single region, the Asia-Pacific Region.
3. Europe Region: The United Kingdom, Spain 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.
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 Malaysia, Taiwan, Hong Kong, Singapore 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,” i.e., for a Market Malaysia UnFranchise Owner, commissions will be paid in Malaysia Ringgit.
Compliance with local rules and regulations: In order to comply with the different laws and regulations of the countries in which Market Malaysia 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 organizations’ 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 that particular country or region.

SEC. 19 GLOBAL MANAGEMENT PERFORMANCE COMPENSATION PLAN

The following are requirements for UnFranchise Owners wishing to expand to the Americas Region, as defined in the Regions Unification section, to be eligible to participate in the Global MPCP. Expansion into the European 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 Non-resident Independent UnFranchise Owner Application and Agreement.
1. In order 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.
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 Americas Region UnFranchise Owners and their customer base within the left and right organizations 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 authorization 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 organization 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 for accruing at least 5,000 global GBV from the left organization and 5,000 global GBV from the right organization) UnFranchise Owners are authorized to designate one additional existing personal BDC to participate in the Americas Region MPCP.
Placement of Personally Sponsored Global UnFranchise Owner BDCs: Global UnFranchiseTM 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. These Global UnFranchise Owners can only be linked/placed on the left leg of the BDC-002 and the right leg of the BDC-003 of the UnFranchise Owner with the Master UnFranchise Owner level until such UnFranchise Owner has earned not less than RM54,000 in 12 consecutive weekly pay cycles. All BDCs, “Home Region” and global, are placed within the same genealogical or organizational system.
Accrual of Global GBV: To make the designated BDC eligible to accrue global GBV, UnFranchise Owners must order an Americas Region subscription kit (this is done during the initial sign-up process), 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 sign-up process once the UnFranchise Owner has designated their global BDC). To continue accruing global GBV toward 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 Region BDCs must be requalified 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: In order to be eligible to earn and receive global commissions, UnFranchise Owners must:
1. Be activated in accordance with the standard MPCP requirement in their Home Region.
2. Activate their designated global BDC by personally sponsoring at least one qualified Americas Region UnFranchise Owner into the left organization of their designated BDC and at least one qualified Americas Region UnFranchise Owner into the right organization of their designated 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 original 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 original BDCs of personally sponsored global 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 a BDC of a particular Americas Home Region on the left side of its organization and a BDC of the same Americas Home Region on the right side of its organization reach 5,000/5,000 in Business Volume generated in that particular Americas region and receive the respective commission in the same weekly commission cycle that the UnFranchise Owner reaches 5,000/5,000 Business Volume in the same Americas Region and receives the respective commission. Only Americas Home Region UnFranchise Owners in the downline that flush in the same weekly pay cycle count toward qualifying for the global Management Bonus.

SEC. 20 GLOBAL UNIFICATION

International Re-Entry Center (IRC)
1. Every Market Malaysia UnFranchise Owner receives an International Re-Entry Center (IRC) to expand into the Europe Region. Market Malaysia UnFranchise Owners expanding into the Europe 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 Malaysia UnFranchise Owner’s organization (subject to any applicable inside leg restrictions). It is recommended that IRCs be placed in the weak leg of the organization.
4. Activity Requirements: An UnFranchise Owner Sales Report (Form 1000) must be completed and submitted, accompanied by a minimum of two retail receipts totaling RM800, prior to earning a commission (this is a one-time only requirement unless at some point the IRC purges).
5. Earning Commission: In order to earn commission, the IRC must be activated by personally sponsoring one qualified Europe Home 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, the BV/IBV will flow upline in the Home Region genealogy above the Europe IRC. To better illustrate this, 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 the illustration below.
7. IRC Management Bonuses: An IRC Management Bonus is earned in the same manner as in the Home Region MPCP. However, to qualify for an IRC Management Bonus, an UnFranchiseTM Owner must have a Europe Home Region BDC on the left side of its IRC organization and a Europe Home Region BDC on the right side of its IRC organization reach 5,000/5,000 in Business Volume generated in the Europe 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 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 Europe Region will be granted when any IRC initially reaches 5,000/5,000 accrued BV.
Unified Global Center (UGC)
1. A Unified Global Center (UGC) is designated when an UnFranchiseTM Owner has qualified their IRC and accumulates 1,200/1,200 BV/IBV in Home Region volume. Note: For those UnFranchise Owners who have already expanded internationally to the Europe Region, UGC replaces the designated global business center.
2. When the combined BV/IBV reaches and exceeds 5,000/5,000 in a weekly pay cycle, the excess originated exclusively from the IRC is transferred to the UGC. Only IRC-converted volume exceeding 5,000/5,000 in a weekly pay cycle is accrued to the UGC. Note: Home Region BV/IBV never accrues to the UGC, and the UGC does not earn Management Bonus.
3. All IRC-originated BV/IBV exceeding 5,000/5,000 in a weekly pay cycle accumulates in the UGC. UGC commissions are calculated and paid as per the standard MPCP.