FIREFLIES OPERATIONS AND COMPENSATION PLAN

Transcription

1 FIREFLIES OPERATIONS AND COMPENSATION PLAN

2 I. PRODUCTS 1. TRAVEL PACKAGES Travel voucher(s) Content of the product Portal usage Product prices* Basic 1*** USD Smart 3*** USD Life**** 7*** 99** 3612 USD *The transaction cost of payment by bank card is 1.4 % at the moment. ** By purchasing Life Package, 92 years of reservation portal usage right is given as a free gift to the package. *** Purchasing Basic or Smart Packages, the validity of the travel vouchers in the package is 1 year calculated from the date of purchase. Purchasing Life Package, the validity of the travel vouchers on the package is 2 years calculated from the date of purchase. ****Those who purchase Life Package can make reservations for a maximum of 10 persons on the reservation portal and travelers do t have to include the owner of the web office. 2. OTHER PRODUCTS Product name Product content Product price* Portal usage fee (for one year) Accommodation reservation 290 USD / year Entrance fee for distributors Right for distribution activity and commission earning (according to the actually valid compensation plan) 49 USD / year Travel voucher (voucher) 1 travel voucher (voucher) 354 USD/ year *The transaction cost of payment by bank card is 1.4 % at the moment. 2 FIREFLIES OPERATIONS AND COMPENSATION PLAN

3 3. SERVICES CONNECTED TO THE PRODUCTS Services Web office Accommodation reservation with bank card/travel Balance Transfer reservation Flight ticket Travel voucher offers Travel guides Ticket purchase for programs Hotline Registration yes Entry fee for distributors yes yes Portal usage right yes, 1 year yes yes Travel voucher yes yes yes Basic Travel Package yes, 1 year yes yes yes yes yes yes Smart Travel Package yes, 5 years yes yes yes yes yes yes Life Travel Package yes, 99 years yes yes yes yes yes yes 4. RIGHT OF CANCELLATION In the case of purchasing and the entry fee the distributor may request the refund of 100% of the purchase price within 14 days, calculated from the date of purchase in writing ( or post). Following 14 days but sooner than 6 month from the purchase the distributor is entitled to request the refund of 50% of the purchase price of the above products in writing ( or post). The relevant address and address, furthermore the provisions for cancellations are determined in the General Business Terms and Conditions (I/2.6.) The refund can only be requested by the user or distributor who made the payment, in addition, Swiss Halley AG credits the refund only to the bank card with which the purchase price was paid. 3 FIREFLIES OPERATIONS AND COMPENSATION PLAN

4 II. DESCRIPTION OF THE COMPENSATION PLAN AND THE DISTRIBUTOR TRAVEL ACCOUNT II/1. DESCRIPTION OF THE UNIFORM COMMISSION SYSTEM, POINT SYSTEM Each product type has different commission content, and the following chart contains the commission percentages belonging to each product: Product name Maximum commission % Qualification point multiplier Quarantine Portal usage right 20 20/51 14 days from the purchase Travel voucher (voucher) 33 33/51 14 days from the purchase Basic travel package 51 51/51 14 days from the purchase Smart travel package 51 51/51 14 days from the purchase Life travel package 51 51/51 14 days from the purchase Accommodation reservation 4,5 4,5/51 Until the first day of travel The % base of the above commission is the net purchase price of the above sold products and services reduced by the bank card payment transaction costs. The Swiss Halley AG during the existence of the period open for cancellation (14 days, or until the first day of travel) puts the commission payable for the sale is into quarantine, i.e. the commission may t be paid out until the end of the 14th day calculated from the day of the purchase. In case of purchase of website right, travel voucher, travel packages terminates following 14 days from the purchase, while in case of hotel reservation, it ends at midnight on the first day of the reservation. The calculation of the commission and qualification points takes place at all times based on the purchases outside the quarantine. In case regarding the sale that forms the bases of the commission paid a cancellation takes place or a so-called charge back event occurs, then Swiss Halley AG shall be entitled to withdraw the already paid 4 FIREFLIES OPERATIONS AND COMPENSATION PLAN

5 commission on the distributor line affected in the concerned sale, therefore receiving commission. In case these distributors do t possess an appropriate amount of unpaid commission, Swiss Halley AG is entitled to debit its claim on the distributor travel balance, or deduct that amount from the future commission of the concerned distributors. 1. PAYMENT POINTS We calculate the points received after certain payments based on the commission algorithms contained in the compensation system. In case of payment 1 payment point = 1 USD. Examples: In case a partner directly joined under the distributor purchases a Basic travel package, then direct bonus shall be paid after this transaction, resulting from the package price of 516 USD (without the transaction costs of payment by bank card), furthermore from the 5% direct bonus and the 1 point multiplier, the distributor receives 25.8 payment points, which will appear as 25.8 USD on their bank account at the time of payment. 2. QUALIFYING POINTS The distributors enter the career level appropriate for the total qualifying points based on the qualifying points calculated by them and their teams. The qualifying points equal with the price of the product according to the compensation plan, multiplied with the qualifying multiplier for the concerned product. There are two types of qualifying points: gift qualifying point and qualifying point. The gift qualification point shall be given to the distributor who purchases a Life or a Smart travel package, in the case of Life package, the number of extra qualification points is 1548, in the case of Smart package, it is 516 qualificatin points. The number of qualifying points of a distributor equals with the qualifying points calculated after the purchases of the products, the own purchases are t taken into consideration at the distributors. As an exemption, in case the distributor starts with a life travel package, in this case the gift qualifying points are taken into consideration when calculating the qualifying points of the group. When purchasing the Life package, the distributor receives the rmal qualifying point plus 3/7 of the rmal qualifying point as extra qualifying point that is also taken into consideration at his own qualifying points. From w on, by purchasing a Smart package, the user gets one third of the rmal qualification points as extra qualification points in addition to the rmal amount of qualification points, this is calculated into the distributor s own qualification points and they also get the phantom line that is included, with which they can be a 3-Front leader even with two 300-point lines. The extra qualification points have to be given with the new Smart package purchases (at a higher price) only. Smart Package extra qualification points: FIREFLIES OPERATIONS AND COMPENSATION PLAN

6 Based on the example mentioned in the above example: In case a partner directly joined under the distributor purchases a Basic package, resulting from this transaction, due to the price of 516 USD (without the transaction costs of payment by bank card) and to the 1 point multiplier, the distributor receives 516 qualification points. 3. THE COMMISSION CONTENT OF EACH PRODUCT Maximum commission % Travel Packages 51% Travel voucher (voucher) 33% Portal usage right 20% Reservation with portal usage right 4,5% Name of commission Percentage value of the commission in the percentage of the value of the purchase Frequency of calculations Direct bonus 5 5* 33/51 5* 20/51 5* 4,5/51 Immediately Depth bonus 18 18* 33/51 18* 20/51 18* 4,5/51 Immediately Matching 2,99 2,99* 33/51 2,99* 20/51 2,99* 4,5/51 End of the month Matrix 15,6 15,6*33/51 15,6*20/51 15,6* 4,5/51 Immediately Distributor generation 3,3 3,3* 33/51 3,3* 20/51 3,3* 4,5/51 Immediately Car 3 3* 33/51 3* 20/51 3* 4,5/51 Immediately Travel contest 1 1*33/51 1*20/51 1* 4,5/51 Immediately Capital share* 2,11 2,11*40/46 2,11*20/51 2,11* 4,5/51 Not defined Total ,5 The bases of the above % is the net purchase price of the sold products and services reduced by the bank card payment transaction costs. The frequency of calculation and payment of the commission may differ. The commission is paid each 2 weeks, until 20th and 5th of each month, with the exception of the 6 FIREFLIES OPERATIONS AND COMPENSATION PLAN

7 matching bonus, that is paid out monthly until 5th each month. Only those commissions are paid, where the criteria are fulfilled (e.g. matrix, car bonus, matching). The car bonus is only paid by the SWISS HALLEY AG, in case the amount of the commission payable to the distributor is minimum USD in case of this type of commission. A further condition of the payment that the distributor submits to the SWISS HALLEY AG the documents and receipts verifying the purchase of the car. The SWISS HALLEY AG reserves the right to determine what type and brand car shall be paid from the bonus. In case the distributor reaches the condition of USD 5.000, he is entitled for the payment of the car bonus in each month, irrespective of the limit, in case the distributor certifies that he uses the received commission for the purchase or finance of a car. In case the distributor is t able to certify this, then he is t entitled for payment until the submission of these documents. 7 FIREFLIES OPERATIONS AND COMPENSATION PLAN

8 II/2 QUALIFYING LEVELS The qualifying levels are distributor career levels, that are reached following the completion of certain own and group turver. The distributors on the different career levels are entitled for different % of the different types of commission, depending on which career level they are (see II/3 bonuses). 0 Conditions Purchase of distributor package 3 FRONT + LIFE PACKAGE + SMART PACKAGE Conditions at least qualifying points on 3 separate lines (or start with a LIFE or Smart package, and at least qualifying points on 2 separate lines) 8 FIREFLIES OPERATIONS AND COMPENSATION PLAN

9 EXECUTIVE CLUB (EC) EC Conditions at least front distributor on 3 separate lines (or start with a LIFE package and at least front distributor on 2 lines) DOUBLE EXECUTIVE CLUB (DEC) DEC EC Conditions at least front distributor on 5 separate lines (or start with a LIFE package and at least front distributor on 4 lines) and there shall be an EC level distributor on the 6th level 9 FIREFLIES OPERATIONS AND COMPENSATION PLAN

10 GOLD LEADER GL Conditions at least qualifying points on 6 separate lines GOLD FOUNDER GL GF GL GL Conditions at least 1-1 gold on 3 separate lines 10 FIREFLIES OPERATIONS AND COMPENSATION PLAN

11 PLATIUM LEADER GL GL PL GL GL GL GL Conditions at least 1-1 gold on 6 separate lines PLATINUM FOUNDER PL PF PL PL Conditions at least 1-1 platinum on 3 separate lines 11 FIREFLIES OPERATIONS AND COMPENSATION PLAN

12 EMERALD LEADER PL PL PL EL PL PL PL Conditions at least 1-1 platinum on 6 separate line EMELARD FOUNDER EL EF EL EL Conditions at least 1-1 emerald on 3 separate lines 12 FIREFLIES OPERATIONS AND COMPENSATION PLAN

13 DIAMOND LEADER EL EL DL EL EL EL EL Conditions at least 1-1 emerald on 6 separate lines II/3. BONUSES When creating the compensation plan, the model was the travel package purchase with 51% commission content, therefore the % values at the description refer to the 51% commission content, in case different information is indicated. The maximum commission % for the bonuses regarding the purchase price is determined here, in case of other products the percentages and the qualification point multiplier are calculated on the basis of the percentage rate of the commission content (e.g. in the case of a 4.5% commission content, the commission and the qualification point multiplier is 4.5/51 %). In case the amount of the total commission connected to a certain product differs from the 51% measure, then the percentage amount of certain commission types is determined based on its proportion compared to the 51% commission. 1. DIRECT BONUS The Fireflies immediately transfers 5% of the net prices of the travel packages (Basic, Smart, Life) on the internal commission point balance of the sponsor, furthermore commission percentages are also transferred based on the purchase of other products, repurchases (see II/1.3). The direct bonus is paid to the first direct distributor above the user or distributor purchasing the product. 13 FIREFLIES OPERATIONS AND COMPENSATION PLAN

14 2. DEPTH BONUS Maximum 18% of the net turver of the products sold in the distributor s group may be earned with depth bonus (travel packages, travel vouchers, hotel reservations, portal usage right). The amount of the percentage depends on the career level and product type. The following chart contains the depth bonus percentages that may be earned at each career level. The distributor may earn the percentage difference between the distributor career level users in the lower line distributor group and the concerned distributor, in case that is larger than zero. In case of Depth bonus it is calculated based on the difference between the commission-based turver of the group below the distributor and the difference between the qualifying level of the distributor level and the distributor level under him. The commission of the concerned distributor is the percentage of the total turver below the distributor belonging to the qualifying level of the distributor, reduced by the Depth commission of the distributors below him (it may t be negative, i.e. in case there is a similar or higher level distributor under the distributor, then the value of the Depth commission on the concerned line is zero). 3 front 3% EC 5% DEC 7% Gold Leader Gold Founder 9% 11% Platinum Leader 13% Platinum Founder 15% Emerald Leader Emerald Founder 17% 18% 3. MATCHING BONUS The Matching bonus may be 13% of the Direct and Depth Bonus earned within one month by the distributors in the Distributor s Group, transferred to the distributor s commission balance in case the concerned distributor received Direct and Depth Bonus in the concerned month. When calculating the matching bonus the distributors on the different career levels are entitled for matching bonus until different depths. When determining the matching depth, the passive levels (i.e. those levels that did t receive either depth or direct bonus in the concerned month) are t taken into consideration. So for example if a distributor is entitled for Matching bonus for one depth, but there are three passive distributors on the line, and the fourth distributor earns commission, then this means one matching depth to the distributor, and the distributor is entitled for commission. 14 FIREFLIES OPERATIONS AND COMPENSATION PLAN

15 The Matching bonus is calculated in the end of each month, based on the commission of the distributors in the lower line of the concerned distributor. In case of purchase maximum 13% (maximum 2.99% of the product price) is paid out of the total Direct and Depth commission. The depth, after that the user is entitled for commission (maximum 13 depths, 1% per depth) is determined by qualifying levels. Those levels on the lines are t taken into consideration, where commission was earned from the above items in the past month. Only a distributor is entitled for matching bonus, who had DIRECT and DEPTH bonus in the concerned month. 1% of the commission turver of the concerned level is bonus on the matching depth level. The matching bonus is calculated based on the DIRECT and DEPTH bonus, as follows: (a) We determine the DIRECT and DEPTH commission received by each distributor in the total line in the concerned month. (b) In case there is a distributor where this value is zero, that distributor is t taken into consideration in that line when calculating the matching bonus. (c) The following calculation is performed for each remaining distributor in the concerned line: We calculate the sum of the DIRECT and DEPTH commission earned on each level of the concerned line. We check, how deep we have to calculate the matching commission in case of the concerned distributor, and 1% of the DIRECT and DEPTH commission is added in case of the concerned distributor as MATCHING commission. Career level Steps DEC 1 Gold Leader 3 Gold Founder 5 Platinum Leader 7 Platinum Founder 10 Emerald Leader 11 Emerald Founder 12 Diamond Leader FIREFLIES OPERATIONS AND COMPENSATION PLAN

16 4. MATRIX BONUS The matrix bonus is the commission paid for the completion of the empty positions in the small matrix and large matrix. Both the small matrix and the large matrix contains 8-8 empty positions as bases. A matrix is complete in case all 8 positions are full. The 8 empty positions in the large matrix may be completed by 8 full small matrix, i.e. 8 empty positions of a small matrix has to be filled so that 1 empty matrix in the large matrix shall be completed. The completion of the empty positions requires certain amount of turver depending on the career level. In case either in a small matrix or in a large matrix empty position is completed during one year, then a proportionate commission is paid out for the position completed so far. Those matrix of the distributor are exemptions, who during migration to this compensation plan started their operation according to this compensation plan with partly completed matrices (i.e. the completed positions depend on the conditions of migration). 1. Small matrix: Each position of the distributor s small matrix may be uploaded with 160 (USD 160) commission points, which points also derive from the turver of the distributor s group, similarly to the Direct and Depth commission. 8.6% commission is uploaded to the small matrix, from the net value of the package purchase of the directly connected users or distributors, which may be increased at most to 15.6%. USD 450 is paid for uploading the total small matrix. The completion of a small matrix position is completed in case of completion of USD 160 commission. USD 450 is paid for the completion of the small matrix. Preliminary matrix commission: In case four lower locations / positions are completed in the small matrix, then the distributor shall be entitled for USD 200 matrix commission. Following the completion of the small matrix, the small matrix is distributed into two, and the total number of the matrices increase by one. Following the completion of a small matrix, the distributor earns USD 450. The preliminary matrix commission forms part of the USD 450 to be paid. Commission parts operating with the same logic as the depth and direct commissions provide a calculation method for the matrix commission that is presently 4% direct commission and 11.6 % depth commission. Career Depth component % 0 4,6 3 front 6,6 EC 8,6 DEC 9,6 Gold Leader 10,6 Gold Founder 11,6 16 FIREFLIES OPERATIONS AND COMPENSATION PLAN

17 2. Large matrix: The uploading of each small matrix also means the uploading of a new large matrix. Commission is paid to the distributor following uploading each position in the large matrix, USD 300 is paid for the first two positions, USD 400, 500, 700, 800, 1100, 2000 is paid for positions from 3 to 8. Furthermore in case of each new large matrix USD 500 matrix opening bonus is paid for the uploading of the first position. Following the large matrix is completed, it is divided into two, and the total number of matrices is increased by one. USD 450 is paid for the completion of a small matrix, and in case all 8 small matrices are completed that are necessary for the completion of a large matrix, then altogether USD 3600 bonus is paid for the completion of these small matrices. USD 6600 is paid for the completion of the total large matrix. The large matrices of those distributors form as example, who started with partly completed large matrices in this present compensation plan, coming from the previous compensation plan, furthermore they had at least one completed large matrix in the previous compensation plan during their business activity. These distributors are entitled for USD 6000 for the first completed large matrix in this present compensation plan, and following the second completely completed large matrix they shall be entitled for USD 6600 for each completed large matrix. 5. LEADER GENERATION BONUS 1. The distributor generation bonus is basically the commission of the leaders on Gold or higher leader levels, which is paid, in case there are members in your group, who are on the same or higher qualifying level as you. The amount of the bonus depends on the purchases within the group below these members, on the distributor s qualifying level furthermore the number of partners entitled for distributor generation bonus in your team. In case you are on Founder Gold leader level, and there is one person in your group who is Founder Gold leader, then following the package purchase below that person, then you receive 15% of the 5% of the net value of the package purchase as Leader generation bonus. 2. In case the distributor is a Platinum leader and there are two Platinum leaders in his group on one line, then he receives 12% of the 4% of the net value of the package purchase as bonus, furthermore he receives 15% of 5% of the half of the net value of the purchase as bonus, while the distributor receives 15% of the 5% of the net value of the purchase as distributor generation bonus. 3. The Leader generation bonus is provided above the Founder Gold leader level, and is calculated from the turver below the distributors on equal or higher level in the line of the concerned distributor. The entitlement for the depth bonus is determined on each qualifying level (maximum 5). The % paid per each generation level may be paid from a certain generation turver only once. In case the concerned % is already paid out from the concerned generation turver, then half of the turver has to be taken into consideration on the following level where generation bonus is paid and the % value shall be paid for that. Furthermore the distributor entitled for generation bonus shall receive the % commission calculated based on the highest possible generation turver (t paid out yet). The algorithm determining the amount of the bonus: We find the distributor in the line above the concerned distributor at a certain transaction, who is on Founder Gold or higher qualifying level, and there is a distributor on the same or higher qualifying 17 FIREFLIES OPERATIONS AND COMPENSATION PLAN

18 level on the above line but at least Founder Gold. (This User shall be called Founder hereinafter.) The generation turver ( v ) of this distributor ( Founder ) deriving from this transaction equals with the price of the purchase product (the founder does t receive generation bonus). In case there is such user on the concerned line, bonus is paid out. Following that we step further on the line upwards, and look for the distributors who are entitled for generation bonus. A distributor is only entitled for generation bonus, in case there is a distributor on the same or higher level on the line ending with the Founder distributor, compared to the concerned distributor. In case we find a distributor on the line entitled for generation bonus, his generation bonus shall be determined as follows: We calculate, how many distributors are there between the Founder and the selected distributor, who are on the same or higher qualifying level (after whom generation bonus is paid), this number shall be x. We check, which depth levels shall generation bonus be paid for to the concerned distributor (maximum 5 levels), this number shall be y. We take min(x,y) and we calculate the bonus for the concerned distributor for those levels. We determine the amount of the generation turver on each levels calculated, based on which generation turver generation bonus was paid on the concerned level between the Founder and the selected user. The generation turver is halved at each bonus payment (i.e. the first distributor above the Founder, who is entitled for generation bonus, receives v *15%*5%, and the following such distributor, who is entitled for generation bonus, receives v *15%*5%/2 etc.). The concerned distributor shall be entitled for bonus on the concerned level from the value of the generation turver levels as follows: 5% of 15% of its generation turver on the first level 4% of 12% of its generation turver on the second level 3% of 9% of its generation turver on the third level 2% of 6% of its generation turver on the fourth level 1% of 3% of its generation turver on the fifth level. 18 FIREFLIES OPERATIONS AND COMPENSATION PLAN

19 6. CAR BONUS 1. The distributors on Gold level receive car purchase support, which consists a higher lump sum and regular monthly payments. The first payment takes place following the Gold career level and the payment of the USD 5,000 car purchase support. 2. The Car bonus is paid above the Gold level, its maximum amount is 3% of the product sales taken into consideration when calculating the commission. The bonus of the concerned distributor is the % belonging to his qualifying level, calculated based on the total turver below the concerned distributor, reduced by the car bonus of the distributors below him (it may t be negative, i.e. in case there is a distributor who is on the same or higher level, then the amount of the Car bonus is zero on the concerned line). Career level % Gold Leader 1,5 Gold Founder 2 Platinum Leader 2,5 Platinum Founder 2,75 Emerald Leader 3 7. TRAVEL CONTEST BONUS The amount of travel bonus is the 1% of package purchases, however in case of purchasing products other than packages, it is the percentage of the value of the purchases proportionate to package purchases. Travel bonus is collected in a fund from the purchases made by the users (in case of package purchases, it is 1 % of the value of the purchase, in case of other products, it is the percentage of the purchase value proportionate to this). In our system we provide you with the itemized documentation and the record of each transactions of travel bonuses for purchases, furthermore the possibility of monitoring and verification/control of the commissions collected as travel bonus. Regarding travel bonuses the management of quarantine is also provided (that is if a package purchase cancellation carried out, the travel bonus will be deleted as well.) A reward trip will be given to Distributors on the basis of the calculation method defined by the cover provided by travel bonus. The payment of the reward trip will be made according to the points below: The reward trip can be paid every 6 months at most, if the necessary conditions for the payment of the trip are satisfied. A maximum of 1+1 persons can participate on the trip. 19 FIREFLIES OPERATIONS AND COMPENSATION PLAN

20 The reward trip will be paid if the total sum of travel points collected by the users reaches 1,500,000 points. As many trip will be paid as many times the total sum of the travel points collected by the distributors reaches 1,500,000 points (i. e. 3,000,000 travel points result in 2 paid trips). If the total sum of points collected by distributors is less than 1,500,000, then reward trip will be paid. The reward trips will be paid in the order of the travel points amount collected in the given period (i.e. the first trip will be received by the user who collected the most points and so on). Travel points For the payment of this bonus, travel points need to be introduced, the amount of which should be determined by the following method: Travel points are calculated only from package purchases. Travel points to distributors can be paid for package purchases made in the subtree (group) below. A distributor can get travel points just in case there is distributor (including the purchaser distributor) on the same or on a higher career level between the given distributor and the user who makes the purchase (exception to this is the sponsor who will also be entitled to receive the point even if he/she is on the same or on a lower career level than the user who makes the purchase.) The travel points for each package purchase on each level can be seen in the following table (the sponsor of the user who makes the purchase means level 1, the next level is represented by the next authorized user): Level BASIC SMART LIFE Formula X 2 333, , X/ , , , X/9 4 37, , , X/ , , , X/81 6 4, , , X/ , , , X/ Total X + X/3 + X/9 + X/27 + X/81 + X/243 + X/486 = X*1,5 20 FIREFLIES OPERATIONS AND COMPENSATION PLAN

21 After the 6-month period, the points collected until then get deleted and calculation starts all over again. (So if users collected 2,999,999 points, only the first user on the list travels and the rest 1,499,999 points will be lost.) At the calculation of the reach of the limit of 1,500,000 travel points, the maximum payable points are considered and t the actually paid ones (that is 1,500 points in the case of a Basic package purchase). Quarantine also has to be handled with travel points: the same way as in the case of the payout and qualification points, travel points are quarantined also for 14 days. If the purchase forming the basis of travel points is canceled within 14 days, travel points have to be deleted. The system calculates the travel points created on the basis of the transactions carried out until the end of the given period (until 11:59:59 pm, Bernese time) as part of the points collected by the users in the given point collecting period. The actual state of the point collection will be displayed in the web office distributor by distributor in the form of a top list (TOP200 list). Example of the calculation of travel points from package purchases: Example 1: Basic package purchase by a 3-Front user. Travel points gathered: Username Distributor level Entitled to travel points? Which entitlement level? Number of travel points collected peter (purchaser) sergey (sponsor) 3F EC - - yes 1 1,000 ladislav DEC yes 2 333, toto EC - - zoe 3F - - fred FG yes 3 111, asterix DEC - - drhouse FP yes 4 37, FIREFLIES OPERATIONS AND COMPENSATION PLAN

22 Example 2: purchase of Life package by a DEC user. Travel points gathered: Username Distributor level Entitled to travel points? Which entitlement level? Number of travel points collected peter (purchaser) sergey (sponsor) DEC - - 3F yes 1 7,000 ladislav EC - 333, toto 3F - - zoe DEC - - fred FG yes , asterix DEC - - drhouse FP yes 3 777, BONUS PAID BASED ON THE CAPITAL Shall be introduced later The bonus paid based on the capital is a pool, where, from a date defined later, 2.11% of the turver forming the basis of the commission calculation will be placed after the bonus is introduced. The payment conditions of the Bonus paid based on the capital is determined by the management of the company. II/4. DISTRIBUTOR TRAVEL ACCOUNT According to the main rule 10% of the commission calculated and payable for the distributor is credited on the so-called distributor travel account. The distributor may freely purchase almost any product or service offered by Swiss Halley AG with the free balance on the distributor travel account, furthermore in case the purchase is made by a travel voucher the distributor may use the balance for the payment of the additional amount. 22 FIREFLIES OPERATIONS AND COMPENSATION PLAN

23 III. REGULATIONS FOR PAYMENT OF THE COMMISSION The payment transaction takes place until the 5th and 20th day of each month via bank transfer. Matching bonus is an exception, it is paid only once a month, together with the transfer on the 5th. Only those commissions are paid, that are freed from the quarantine. a) The commission is paid by bank transfer to the bank account provided by the distributor b) Distributor obligations Providing the company data Those distributors, who would like to register in the Fireflies system as companies, shall provide the following data and verify the accuracy of those data: Company; Company name; Company registration No.; Taxation No.; Document that verifies that the user is the sole or partial owner of the company; IBAN No.; Bank name; S.W.I.F.T., In case of private entrepreneur the number and introduction of the entrepreneurial ID. The company data are accepted in case the user is a partner in the concerned company, i.e. the user is the sole owner or is one of the owners. The user is obliged to indicate that part of the uploaded document, where he is listed as owner. Uploading the bank account verification The User shall verify, that the provided bank account is his, or belongs to the company where he is also a partner. Therefore the user shall be obliged to upload a bank account extract, where the name of the private person / company, furthermore the connecting bank account number is indicated. 23 FIREFLIES OPERATIONS AND COMPENSATION PLAN

24 IV. FURTHER PROVISIONS, DELETION OF THE DISTRIBUTOR In case a distributor fails to pay the renewal of the yearly entrance fee to the use of the website, then he is deleted as distributor following 90 days from the structure. When deletion, the distributor loses its right as distributor. The qualifying points calculated from the deleted distributors further qualify to the qualification of the above distributors. The expiry of the distributor membership results in the loss of the distributor s career level and the distributor status. In case the distributor deletes itself, he may t register again for 1 month. Those distributors, who possess entry fee, may request the deletion of their registration from the support team, and they become inactive distributors for the next 1 month. They may register again to the FF system freely following the 1 month inactivity (based on invitation). Following the deletion of the User, for the sake of the payments the termination of the quarantine of the commissions have to arrive, in order to pay the below mentioned elements. In case the distributor requests the deletion or the company excludes the distributor from the Fireflies system, then: The unused amount on the Travel Balance cant be paid to the distributor by Swiss Halley AG either via bank transfer or in cash. That is why it is the distributor s responsibility to use the free amounts on the Travel Balance before deletion. In case Swiss Halley AG excludes a distributor, after tification about the exclusion the distributor has 7 days to use the free amounts on the Travel Balance. The payable commissions will be transferred by Swiss Halley AG only to the bank account to which earlier commission payments were made for the distributor. The amount collected in the Car bonus is transferred if the distributor completed the requirements concerning the payment of this bonus. In case there is a free voucher, he may provide a user or a distributor, whom he intends to transfer his travel voucher /vouchers In case he fails to provide a distributor or a user to whom he intends to transfer is unused travel voucher, then Swiss Halley AG transfers his distributor status into user profile. Later this person may use his travel voucher as a registered user. On the distribution line, the structure below will be connected to the distributor directly above the deleted distributor. 24 FIREFLIES OPERATIONS AND COMPENSATION PLAN