FORDAYS Member s Guide

Transcription

1 0 FORDAYS Member s Guide (Document serial number) Please enter the above serial number in the space provided on the Checklist for Membership Applicants document. This document was created to help prospective members understand what is involved in becoming a Fordays member and participating in the Fordays Business Opoortunity. Prospective members must thoroughly read and understand the contents of this document prior to registering as a Fordays member. - The person who provides you with this document will explain the key points. After receiving this explanation, be sure to retain a copy of this document, read it thoroughly and store it in a safe place. - This document is not a membership contract. You will be sent a Membership Approval Notification (Membership Contract) by mail once your membership application has been approved. A Sponsor or Trainer must fill in the below information and hand this document to the prospective member. Name of prospective member: Date explanation received (DD/MM/YY): Sponsor s name: TEL: Mobile: Trainer s name: TEL: Mobile: Fordays utilizes a multilevel marketing business model, as defined under the Specified Commercial Transactions (SCT) Act*. * The Specified Commercial Transactions Act regulates the conducting of direct selling activities, such as mail order sales, door-to-door sales, and multilevel marketing.

2 1 Contents Section 1: Member s Guide... 2 Company Overview... 2 Becoming a Member... 2 Shipping Method and Timing... 4 Available Payment Options... 5 Course Details... 6 Cooling-off Period... 8 Membership Cancellation... 8 Replacement & Return Policies... 8 Changing Membership Details; Membership Cancellation/Termination... 9 Section 2: Business Opportunity What is the Fordays Business Opportunity? Bonuses Start Bonus Trainer Bonus Line Bonus Director Bonus Title Bonus Making Additional Purchases Purchasing Samples Keep Shop: Purchasing of Products by Non-Members Pricelist / PV List Section 3: Product Guidebook... See separate document Section 4: Prohibited Conduct Prohibited Conduct when Performing Business Activities Compliance Score System Section 5: Membership Terms and Conditions Section 6: Privacy Policy... 37

3 2 Section 1: Member s Guide Company Overview Company name Fordays Co., Ltd. Head Office Tokyo, Japan Founded April 1997 Company President Keiko Wada Address Contact No , Kayaba-cho, Nihonbashi, Chuo-ku, Tokyo, Japan (Customer Support Hotline) Product lineup information Please refer to the Fordays Product Guidebook for details of available products. Product distributor: Fordays Co., Ltd. Address: , Kayaba-cho, Nihonbashi, Chuo-ku, Tokyo, Japan ZIP: Tel.: (Customer Support Hotline) Fax: Affiliated organizations National Association for Direct Selling and Distribution National Association for Direct Selling and Distribution Consumer Hotline: (Business hours) Weekdays: 10:00 ~ 12:00 / 13:00 ~ 21:00 Weekends: 10:00 ~ 12:00 / 13:00 ~ 16:00 Japan Health and Nutrition Food Association CRN-JAPAN Tokyo Chamber of Commerce and Industry Becoming a Member What is a Fordays member? A Fordays member ( member below) is a legal entity (natural person, juridical person) that agrees to the contractual obligation to fulfill the specific burden requirements (i.e. make an initial purchase of two months worth of products (products vary depending on selected course) and place an order for one month s worth of products from the third month onward), meets the membership eligibility criteria, completes a membership application form, and has their membership application approved by Fordays Head Office. There is no membership application fee! What is the Fordays Business Opportunity? Fordays offers its members bonuses and other incentives (specified benefits) as a reward for performing business activities, such as enrolling (sponsoring) new members and promoting sales of Fordays products. This system is known as the Fordays Business Opportunity. In addition to leading healthier, more fulfilling lives by consuming Fordays products, members can take advantage of the Fordays Business Opportunity to earn financial rewards and improve their standard of living. (Refer to Section 2: Business Opportunity for further details.)

4 3 Membership eligibility criteria The following persons (natural persons) are ineligible for membership: 1. Persons under twenty (20) years of age and/or persons undertaking secondary or tertiary education (e.g., high school, undergraduate, or postgraduate studies) or other further studies at a preparatory college, technical college, etc. (This condition does not apply persons who commence secondary or tertiary education after receiving membership approval.) 2. Persons under guardianship or persons who are incapable of making sound judgments (people with reduced mental capacity, people suffering from dementia, etc.). 3. Persons seventy five (75) years of age or older whose membership application is not cosigned by an adult family member. 4. Foreign residents. (However, this condition does not apply to foreign residents who have a permanent address, stable employment, and whose status of residence permits them to reside in Japan for a period of over one year.) 5. Persons (including members who exercised their cooling-off rights) reapplying for membership within 6 months of membership termination. 6. Persons who have been permanently expelled by Fordays or who have previously cancelled their membership whilst serving a suspension for misconduct. 7. Persons sponsored (enrolled) by a member who does not hold a Sponsor License who are not a family member living at the same residential address as the member. 8. Other persons who, for whatever reason, Fordays deems ineligible for membership. The following types of corporations (juridical persons) are ineligible for membership: 1. Japanese owned corporations (stock companies, general partnership companies, limited partnership companies or limited liability companies) set up outside of Japan for tax purposes or foreign corporations without a locally registered corporate entity. 2. Any executives (CEO, other legal representatives) wishing to register under a corporate membership who do not meet the membership eligibility requirements for individuals (natural persons). Please refer to Article 4 of the Membership Terms & Condition (Section 5 of this guide) for more details. Details of specified benefits Please refer to Section 2 (Business Opportunity) for details of specified benefits. Details of specified burden 1) Product purchase Initial purchase: At the time of membership application, members are required to make an initial purchase of 2 months worth of products (products will vary depending on chosen course). Ongoing monthly purchases: From the third month after registration onwards, members must meet the purchase requirements for their selected course in each monthly assessment period* to be eligible to receive the specified benefits. * The assessment period (for calculating bonuses, etc.) is the one-month period from the 18 th day of each month until the 17 th day of the following month. Note: A member may cancel their Membership Contract at any time (see page 8 for further details). Furthermore, members have the option of selecting payment methods other than AutoShip (direct debit), but should be aware of the minimum purchase requirements to avoid reclassification or membership termination. 2) Trainer kit purchase P Trainer kit: 1,026 yen (incl. tax) S Trainer kit: 4,104 yen (incl. tax) Members are required to purchase the above trainer kits to obtain the respective trainer certifications.

5 4 3) Purchase of materials related to membership application Be sure to use only Fordays-approved materials during the new member enrollment process. Membership application process The first step to becoming a Fordays member is to receive an explanation of the key points of the Fordays Member s Guide (this document) from a certified Sponsor or Trainer and then thoroughly read all of the membership application-related documents (Member s Guide, Checklist for Membership Applicants, Membership Application Form, etc.), ensuring that you fully understand these documents. The next step is to complete and sign the Membership Application Form and Checklist for Membership Applicants. These documents must be completed by the applicant themselves. The completed and signed Membership Application Form and Checklist for Membership Applicants must be submitted to Fordays Head Office for processing. While the initial submission can be done by fax, the original copy of the Membership Application Form must also be submitted to Head Office within 30 days of the faxed documents being received (original copy of Checklist document is not required if a copy has been faxed). Corporate membership applications must be accompanied by a copy of the company s Certificate of Registration issued no longer than three months prior to the application date. (Required as of April 2014). * Corporate membership applications not accompanied by this document will not be accepted. * If there are any changes to the Certificate of Registration details, please submit an updated version to Fordays. After membership application processing is completed, Fordays Head Office will forward a formal membership approval notification (membership contract) to the newly registered member. Flow from application completion to product shipping: Bank transfer Complete application form Transfer payment Fax application form to Head Office (with bank transfer statement attached) Submit original application form (by mail, in person) Process application and confirm payment, then ship products to new member together with membership approval notification (contract). COD (cash on delivery) Complete application form Fax application form to Head Office Submit original application form (by mail, in person) Process application, then ship products to new member together with membership approval notification (contract). Cash (paid at salon, synapse café, station) Complete application form Submit application form (in person) Pay for initial order in cash (at time of form submission) Process application, then send membership approval notification (contract) to new member. Task performed by member Task performed by Fordays * Please be aware that membership application processing can take a considerable period of time in some cases. Shipping Method and Timing Products will be delivered by courier within one week of application processing being completed. However, there is a possibility that, due to unforeseeable circumstances, delivery may be delayed. If products arrive in a damaged state or are unfit for consumption/use, please contact the Fordays Customer Hotline on Fordays will generally request that the product(s) be sent to Head Office (shipping costs will be covered by Fordays). After the problem is confirmed by Fordays staff, a replacement product will be shipped. Alternatively, a member can request a full refund of the purchase price.

6 5 Available Payment Options After choosing a course, a new member can make the initial payment by either transferring payment to Fordays nominated account in advance, paying COD, or paying in cash at a Fordays salon, synapse café, or station. Any fees/charges relating to payment transfers shall be the borne by the member. Account details for those wishing to pay via bank transfer: Account holder: For Days Co., Ltd. (JP Bank account) Account number: (Regular bank account) Mitsui Sumitomo Bank, Nihonbashi Branch, savings account Account number: If paying by bank transfer, be sure to attach a copy of the transfer completion statement to the Membership Application Form when faxing it to Fordays Head Office. Shipping/COD fees: Standard shipping/cod fees Shipping fee: 669 yen (incl. tax) COD fee: 313 yen (incl. tax) Rules relating to shipping/cod fees: A, B, F, and G course customers who make regular monthly purchases do not have to pay shipping or COD fees. For I Course members who choose the COD payment option, a fee of 313 yen (incl. tax) will apply. Members who purchase over 11,826 yen (incl. tax) worth of PV applicable products do not have to pay shipping/cod fees. Note: - Shipped orders will only be held by the courier company for 7 days, after which time they will be returned to Fordays. - If a member requests products that have been returned to Fordays to be reshipped, a 669 yen (incl. tax) shipping fee will apply. - Actual shipping fee may vary depending on number of products shipped. AutoShip information: For members who choose the AutoShip option from the third month onward, payment will be withdrawn from their nominated account on the 5 th day of the month and their order will be shipped automatically. (The order will arrive around the 13 th day of the month. Please check Message, the Fordays monthly magazine, to confirm the order shipping and arrival dates for the coming months.) Note: - AutoShip members may only nominate an account held in their own name. - If the Membership Application Form and the Bank Transfer Request Form & Automatic Payment Authorization Form arrive at Head Office before the 22 nd day of the month, AutoShip will commence from the third month onward, with payment withdrawn on the 5 th day of every month. However, depending on the processing time required, it may not be possible to commence AutoShip from the third month onward. (Payment processing agent: SMBC Finance Service Co., Ltd.)

7 6 Course Details Members are required to choose their preferred course at the time of membership application. There are five courses available: A, B, F, G, and I. A Course: Monthly purchase of one 720ml bottle of Natural DN Collagen. B Course: Monthly purchase of two 720ml bottles of Natural DN Collagen. F Course: Monthly purchase of 3 or 3.5 points worth of products chosen from the available lineup. * For details of available products and product point details, please refer to page 21 & 22 of this guide. ** Please note that F Course AutoShip members (members paying via direct debit) who do not change their order details by the 22 nd day of the month will be sent the same products they ordered the current month. *** If an order for additional products is placed by the 15 th day of the month, these additional products will be shipped together with the regular monthly order. G Course: Monthly purchase of 6 or 6.5 points worth of products chosen from the available lineup. * For details of available products and product point details, please refer to page 21 & 22 of this guide. ** Please note that G Course AutoShip members (members paying via direct debit) who do not change their order details by the 22 nd day of the month will be sent the same products they ordered the current month. *** If an order for additional products is placed by the 15 th day of the month, these additional products will be shipped together with the regular monthly order. I Course: Monthly purchase of one product worth 1.5 points chosen from the available lineup. * For details of available products and product point details, please refer to page 21 & 22 of this guide. Active members enrolled in any of the five courses who perform business activities will be eligible to receive one or more bonuses, depending on their membership status (course, position, etc). Please refer to the Business Opportunity section of this guide for further details. Initial purchase & ongoing purchase details A Course Members For the initial order, two months worth of products will be shipped (2 bottles of Natural DN Collagen). 2 yen per bottle = 18,576 yen (incl. tax) From the third month onward, 1 bottle of Natural DN Collagen will be shipped every month. 1 yen per bottle = 9,288 yen (incl. tax) B Course Members For the initial order, two months worth of products will be shipped (5 bottles of Natural DN Collagen). (Includes 1 complementary bottle sent every odd-numbered month) 4 yen per bottle = 37,152 yen (incl. tax) From the third month onward, 2 bottles of Natural DN Collagen will be shipped every month. (1 complementary bottle will also be sent every odd-numbered month) 2 yen per bottle = 18,576 yen (incl. tax) F Course Members For the initial order, two months worth of products will be shipped (total of 5 or 6 points worth of products chosen from the available lineup). 5 points worth of products = 18,576 yen (incl. tax) or 6 points worth of products = 20,520 yen (incl. tax) From the third month onward, a total of 3 or 3.5 points worth of products chosen from the available lineup will be shipped every month. 3 points worth of products: 10,260 yen, (incl. tax) or 3.5 points worth of products: 12,312 yen (incl. tax)

8 7 G Course Members For the initial order, two months worth of products will be shipped (total of 10 or 12 points worth of products chosen from the available lineup). 10 points worth of products = 37,152 yen (incl. tax) or 12 points worth of products = 41,010 yen (incl. tax) From the third month onward, a total of 6 or 6.5 points worth of products chosen from the available lineup will be shipped every month. 6 points worth of products: 20,520 yen (incl. tax) or 6.5 points worth of products: 22,680 yen (incl. tax) Note: - An additional 518 yen fee will apply to F & G Course members who select a payment option other than AutoShip (direct debit) from the third month onward.. I Course Members For the initial order, two months worth of products (i.e. two products worth 1.5 points each) will be shipped (total of 3 points worth of products). 12,312 yen (incl. tax) From the third month onward, one product worth 1.5 points (chosen from the available lineup) will be shipped every month. 6,566 yen (incl. tax) Repeater points and special rewards Repeater points Regardless of payment method, the repeater points shown in the below table will be awarded to members every month they purchase Fordays products. Members who accumulate over 14 points can exchange these points for a present of their choice. The present will be delivered together with the next month s order. Note: * Points will remain valid for a period of 3 years from the month after the first repeat purchase is made. * A member can accumulate a maximum of 48 points. * Upon membership termination, all repeater points shall be deemed null and void. * Refer to Message magazine for further details Selected Course A Course B Course F Course G Course I Course Monthly repeater 2 points 1 point (4 points in even 1 point 2 points 0.5 points points numbered months) Special rewards B and G Course members are eligible to receive the special rewards outlined below: B Course: In odd-numbered months (6 times a year), B Course members receive one additional bottle of Natural DN Collagen free of charge. G Course: In odd-numbered months (6 times a year), G Course members receive a complementary gift. * Customers who pay COD are not eligible to receive special rewards. * Please be aware that special rewards may change due to changes in the business environment or other social factors.

9 8 Cooling-off Period A membership (contract) can be cancelled within the 20 day cooling-off period, which takes effect from the date a member receives membership approval notification, by submitting a cancellation form (see below). Cancellation will take effect from the date the cancellation form is sent (verified by checking the post office date stamp). In the event of cancellation within the 20-day cooling-off period (1) the member shall not be liable for any damages or penalties, (2) the member shall not be liable for the cost of returning products, and (3) Any payments already made by the member shall promptly be refunded in full. Please be aware that cooling-off provisions shall not be applicable to any product(s) that have been consumed/used by the member (including all Fordays supplements, cosmetics/skincare products, and tepap series products) and no refunds will be provided (except in the case of samples used/consumed by prospective customers). Persons prevented from exercising their cooling-off period rights due to receiving false or misleading information from another Fordays member, or persons unable to exercise their cooling-off period rights due to being subjected to intimidation or threats, should contact Fordays Head Office and request approval to exercise their cooling-off rights. They should then submit the cancellation form (shown right) within 20 days of the date they received verbal approval to exercise their cooling-off rights. ZIP: , Kayaba-cho, Nihonbashi, Chuo-ku, Tokyo, Japan Fordays Co., Ltd. Att: Membership Cancellation Dept. (Own details) Address, Member ID No., Full name, Personal seal, Telephone No. Date initial order placed (YYY/MM/DD) Details of applicable (ordered) products and total amount paid Name of enroller I wish to cancel the membership application (contract) entered into on the date shown above. Membership Cancellation Even after the cooling-off period has expired, membership can be cancelled at any time. Online cancellation: Membership can be cancelled online via the Members Only Site. Online cancellation requests received by the 17 th day of the month will take effect from the 18 th day of the same month (the end of the current assessment period). Cancellation requests received on the 18 th day of the month or later will take effect from the 18 th day of the following month (the end of the following assessment period). Cancellation over the phone: Membership can also be cancelled over the phone by calling the Fordays Customer Hotline on (Office hours: Mon. Fri., 9:45 ~ 17:30). Cancellation requests received by the 12 th day of the month will take effect from the 18 th day of the same month (the end of the current assessment period). Cancellation requests received on the 13 th day of the month or later will take effect from the 18 th day of the following month (the end of the following assessment period). Return & Replacement Policies Replacement policy: If product(s) arrive in a damaged state or are unfit for consumption/use, please contact the Fordays Customer Hotline on Fordays will generally request that the product(s) be sent to Head Office (shipping costs will be covered by Fordays). After the nature and cause of the problem is confirmed by Fordays staff, a replacement product will be shipped. Alternatively, a member can request a full refund of the purchase price. Return policy: Members who cancel their membership within one year of enrollment can return purchased products (sales promotion products, samples, products purchased for personal use) and receive a refund equivalent to 90% of the original product purchase price. If the member has an outstanding debt, this amount will be deducted from any refund. The member will be responsible for shipping costs related to product return.

10 9 Refunds will not be made in the following cases: 1. Over 90 days has passed since the customer received the product. 2. The product was purchased through a channel other than directly from Fordays (including products purchased from upline members, internet auction sites, etc.). 3. The product has been opened or used. 4. The product has been damaged or destroyed by the member. 5. The product was given to the member free of charge (for promotional purposes, etc.). 6. The product is the complementary gift sent to B or G Course members every odd-numbered month. Note: - In cases where the complete set of purchased products (eg. F/G/I Course, family pack, sample) is not returned, the refund will be proportionate to relative value of returned products, minus any applicable cash rebates. - Any bonuses paid on PV generated by returned products must be fully reimbursed to Fordays. Product return/replacement is not permitted under any circumstances other than those outlined above. Changing Membership Details; Membership Cancellation/Termination Changes to personal details or membership status can be made by submitting a Change Request Form to Fordays Head Office by either postal mail or fax. Some changes can also be made online via the Members Only Site (see below for details.) Note: If the Change Request Form is submitted by the respective cut-off dates indicated in the right hand column of the table below, the requested changes will be effective from the following month. If a request is submitted after the stipulated cut-off date, then the change will not take effect until the assessment period two months after when the request is lodged. For inquiries relating to changing personal details or membership status, please contact the Fordays Customer Hotline on Type of change Change of home/ shipping address Change of name Further details / Important considerations If any changes to personal details please submit a Change Request Form as soon as possible. A registered name can only be change to that of a spouse or relative within the third degree of kinship. To change to a corporate member (and register a business name), it is necessary to submit the company s Certificate of Registration (issued no longer than three months prior to the application date). For members wishing to change the family name only, please contact Fordays directly on the number provided above. If a member changes the family name for their Master ID, this change will also be applied to any Sub IDs. Change of name requests will incur a 205 yen (incl. tax) processing fee. (Where possible, this fee will be deducted from the member s monthly bonus payment.) In the event of a name change, any Sponsor License or Trainer Certificate held under the old name, must be obtained again under the new name. Submission cut-off date Accepted any time Accepted any time

11 10 Change of bank account details Request to resume AutoShip (direct debit) Requests to change bank account details will incur a 205 yen (incl. tax) processing fee. (Where possible, this fee will be deducted from the member s monthly bonus payment.) If a request to recommence AutoShip is submitted by the respective cut-off dates, AutoShip will recommence from the following monthly assessment period. Change of course If a request to change courses is submitted by the respective cut-off dates, the change will take effect from the following monthly assessment period. Request to skip or temporarily suspend orders Members are able to change from their existing course to any of the other available course. If an order skip/suspension request is submitted by the respective cut-off dates, the change will take effect from the following monthly assessment period. If an AutoShip member requests to temporarily suspend an order, AutoShip will automatically recommence from the month after the requested suspension period ends. Members who suspend orders for longer than two consecutive months will be reclassified as K Course members. Accepted any time TEL or FAX: 12 th day of every month by Online: 17 th day of every month Rules relating to reclassification as a K Course member Members who do not order their chosen course for three consecutive months will be reclassified as K Course members. The following rules apply to K Course member: K Course members can reactivate their ID at any time by contacting Fordays Head Office and requesting reactivation. Members wishing to reactivate their K Course ID and select the AutoShip payment option are required to submit a Change Request Form. If a member s Master ID and Sub ID(s) are reclassified as K Course members at the same time, the member will only be permitted to reactivate the Master ID. If a K Course member does choose to reactivate their ID, they will not be permitted to return to their original location (they will be repositioned on the 1 st line of their enroller (sponsor)). If a member is reclassified as a K Course member, any members downline of this person will undergo compression (i.e., members downline of this person will be moved up one line). Members who are reclassified as K Course members will lose their Sponsor License and Trainer Certification (if any). Automatic membership termination If a K Course member does not purchase their selected course for six consecutive months, their membership will be automatically terminated. Membership may also be automatically terminated if a member violates the Membership Terms and Conditions (see Section 5 of this guide). Re-registration after membership termination Members will only be permitted to reregister within six months of membership termination if they agree to be positioned under their original sponsor (enroller) or direct upline.

12 11 Section 2: Business Opportunity Unless otherwise indicated, all prices, bonus amounts and PV shown in this section are exclusive of consumption tax. Bonuses paid to members will be inclusive of consumption tax. The Pricelist/PV List on page 21 & 22 shows values both inclusive and exclusive of consumption tax. What is the Fordays Business Opportunity? The Fordays Business Opportunity is a system of awarding bonuses and other incentives (specified benefits) to members who actively expand Fordays customer base by introducing others to Fordays products and getting them to register as members. Bonuses (Specified Benefits) There are 2 kinds of bonuses available to members: one-off bonuses (Start Bonus, Trainer Bonus), which are awarded for enrolling new members who purchase Fordays products; and ongoing bonuses ( Line Bonus, Director Bonus, Title Bonus), which are calculated based on the point value (PV) generated by ongoing purchases made by each member and their downline group members. Bonuses are only available to Active members, that is, members who purchase their selected course products in a given monthly assessment period. Fordays Dictionary Key Vocab. Explanation Additional points Active member PV (point value) Master ID Sub ID Downline group members A member who purchases one of the 5 available courses during a given assessment period. Points used to calculate bonuses. There are three kinds of PV: Initial PV, Repeat PV, and Additional PV. The first ID that one registers. Subsequent IDs are known as Sub IDs. An additional ID that a member can position within their own downline group. A member can register up to six IDs (1 Master ID + 5 Sub IDs). Intended for members who want to increase their earning potential. All members of one s downline group (excluding one s Master ID). The initial 2 months worth of products purchased by a member at the time of enrolment qualifies them as an Active member for the first 2 months. Only Active downline group members are considered when determining eligibility for the various bonuses. Repeat PV and Additional PV are used to calculate the Line Bonus, Director Bonus, and Title Bonus. Initial PV is used to calculate the Start Bonus and Trainer Bonus. Of the PV generated by the initial 2 months worth of products purchased, 50% are Initial PV and 50% are considered Repeat PV. All bonuses payable on the PV generated by the initial 2 months worth of products purchased will be paid in the first month after enrollment.

13 12 Line GPV Personally enrolled member Compression The descending levels of one s downline group. Group Point Value. Total PV generated by a member and their downline group members Any new member that one is personally responsible for enrolling (for whom one is listed as the Sponsor on the Membership Application Form). Compression means downline members being permanently moved up one line when their direct upline is removed from the group. Compression occurs if the direct upline s membership is terminated, or if the direct upline is reclassified as a K Course member. A member can have a maximum of 7 members on their 1 st line. A member s own Repeat PV do not count toward GPV. A member s own Additional PV do count toward GPV. If a member whom one personally enrolls is reclassified as a K Course member or has their membership terminated, that member s personally enrolled members will become the personally enrolled members of the Sponsor (enroller). Compression may result in an upline member having more than seven memberson their first line. Although this is not normally allowed, it will be permitted under these circumstances. Payment of bonuses Fordays calculates bonus payments based on a member s business performance over a one month assessment period, which runs from the 18 th day of each month until the 17 th day of the following month. (For example, the June assessment period runs from May 18 to June 17.) Bonus payment calculation is performed at the end of each assessment period and bonus payments are paid into each member s nominated account by the last day of the same month. All bonus payments are inclusive of consumption tax. A processing fee of 518 yen (incl. tax) will apply to all payment transfers (per ID), and will be borne by the member. Bonus payments will not be paid to members until such a time as the total amount owed exceeds 3,000 yen (incl. tax). (1) If a member requests an amount less than 3,000 yen be sent, the amount owed will be forwarded, less any processing fees. (2) Any monies owed that fall below the 3,000 yen threshold may be put toward payment for future product purchases. Bonus payments can only be forwarded to an account held in the member s own name. Any member who held the position of Director at the time of their previous monthly order can have payment for purchases made in the current month deducted from their current month s bonus payment up to the value of 50% of the minimum monthly bonus received over the preceding three assessment periods (Master ID and Sub ID bonuses combined). How to obtain a Sponsor License (required for sponsoring the enrolment of new members) From May 24, 2018 onwards, all members wishing to conduct business activities (enroll new members, etc.) are first required to obtain a Sponsor License. Steps for obtaining a Sponsor License: 1) Attend a Compliance Seminar run by a Fordays trainer or a BS1 Compliance Seminar. 2) Pass the compliance test given at the end of the seminar. 3) Receive your Sponsor License certificate and badge.

14 13 Note: To obtain a Sponsor License, you must be willing to provide contact details so that Fordays and upline members can send you important notifications in a timely manner. Your Sponsor License will remain valid for a period of 18 months from the date of attainment. You are required to renew your Sponsor License prior to its expiry date. Members who hold a Sponsor License are under no obligation to meet sales quotas. A Sponsor License is not required to sponsor (enroll) a family member who lives at the same residential address or to sponsor a Sub ID for an existing member. Additional information Regarding Sub IDs, members are required to place monthly orders for each individual Sub ID, but may have the ordered products shipped to different addresses. (If sending the products to another member, they may only be sent to a downline or upline member in the leg in which the Sub ID is registered). Please refrain from registering more Sub IDs than necessary. Fordays reserves the right to decline a Sub ID application. (Depending on the circumstances, Head Office may, at its discretion, approve more than 5 Sub IDs for a particular member.) For membership applications by new members who live at the same residential address as an existing member, the existing member must be listed as the Sponsor. In the case of corporate memberships, the company directors are permitted to register Master IDs in their own names, provided that they are listed as directors on the company s Certificate of Registration. Members who do not order their chosen course for three consecutive months will be reclassified as K Course members. 1) Start Bonus (One off bonus; available to all A, B, F, G and I Course members) Reward for sponsoring (personally enrolling) a new member. Only members who have obtained a Sponsor License are eligible to sponsor (enroll) new members and receive a Start Bonus. (excl. tax) Enrolled Course A F Course B G Course I Course Bonus(per member enrolled) 3,340 yen 8,600 yen 1,900 yen Note: To register a new member within one s own downline group, indicate the requested upline member on the Membership Application Form (See How to Complete the Membership Application Form guide for further details). 2) Trainer Bonus (One off bonus; available to all A, B, F, G and I Course members) A Trainer Bonus received for providing guidance and support to other members during the new member enrollment process. Specifically, the trainer is responsible for ensuring that compliance guidelines are adhered to during the new member enrollment process and that the new member understands the Fordays business model, specified burdens, etc. The Trainer Bonus is received even when supporting the enrollment activities of members outside of one s own downline group. To remain eligible to receive a Trainer Bonus, a member must ensure they continue to meet the trainer certification eligibility criteria. There are two levels of trainer certification, Pre-Trainer (PT) and Start Trainer (ST). The bonuses awarded differ for PT and ST.

15 (Excl. tax) New member enrolled in A, F, of I Course New member enrolled in B or G Course Pre-Trainer (PT) 600 yen 1,500 yen Start Trainer (ST) 2,000 yen 4,860 yen When Both PT and ST are listed PT: 600 yen ST: 1,400 yen PT: 1,500 yen ST: 3,360 yen Note: A Trainer Bonus cannot be divided between two trainers of the same certification level (e.g., two Pre-Trainers). Please only enter one trainer for each level (one PT and/or one ST) on the Membership Application Form. Trainer Certification Prerequisites (applicable to all courses) In order to ensure members who attain trainer certification are providing proper guidance and explanations in line with compliance regulations, Fordays has made changes to the trainer certification prerequisites. (Effective from August 18, 2017). (All A, B, F, G, and I Course members are counted as one member.) Pre-Trainer certification prerequisites 1) Obtain a Sponsor License 2) Have a minimum of three personally enrolled members in one s downline group. Note: Sub IDs not counted as personally enrolled members. 3) Hold the position of Leader or higher. (Three members in 1 st line, two members in 2 nd line. See following page for further details). 4) Attend a minimum of three Open Seminars held by Fordays. (Start Seminar (SS), Skin Care Seminar (CS), or Fordays Style Seminar (FS)) Note: Attending a Friendly Seminar organized by a Triple Star Director also counts toward Open Seminar attendance. 5) Attend a Trainer Certification Seminar held by Fordays and pass a certification test given at the completion of the seminar 6) Purchase the P Trainer kit. (Trainer kit fee: 1,026 yen (incl. tax)) Note: The trainer kit is delivered after certification is approved. Start Trainer certification prerequisites 7) Meet the prerequisites for attaining Pre-Trainer certification. 8) Have a minimum of one member on 1 st line who has attained the position of Leader. 9) Attend at least one Business Seminar held by Fordays. Note: Seminar must be attended in the same month that S Trainer prerequisites are met. 10) Purchase the S Trainer kit. (Trainer kit fee: 4,104 yen (incl. tax)) Note: I Course members are not eligible to apply for S Trainer certification. Loss of Trainer Certification A member may be stripped of their trainer certification under the following circumstances: 1) Member acts inappropriately in their capacity as a trainer (applies to both PTs and STs). 2) Member does not maintain the position of Leader for six consecutive months. 3) Member does not renew their trainer certification (by attending a trainer seminar and passing test) within 24 months (2 years) of certification attainment/previous renewal. 4) Member is reclassified as a K Course member or has their membership terminated. 5) A member changes the name under which the ID was registered (and trainer certification attained). 6) Member does not obtain a Sponsor License by 17 October

16 15 3) Line Bonus (Ongoing bonus; available to all A, B, F, G and I Course members) Members receive a Line Bonus based on the total monthly PV generated by repeat purchases made by each line of their downline group (see table below for details of calculation method). A Line Bonus also applies to additional purchases made by both members themselves and their downline group members. Please refer to the Fordays Business Manual for further details. Line Bonus for repeat purchases (applicable to Active Members) A or F Course members (Bonus applicable down to 5 th line) 1 st line Bonus equivalent to 15% of total PV generated by repeat purchases 2 nd to 5 th lines Bonus equivalent to 5% of total PV generated by repeat purchases B or G Course members (Bonus applicable down to 8 th line) 1 st line Bonus equivalent to 15% of total PV generated by repeat purchases 2 nd to 8 th lines Bonus equivalent to 5% of total PV generated by repeat purchases I Course members (Down to the 3 rd line) 1 st line Bonus equivalent to 15% of total PV generated by repeat purchases 2 nd and 3 th lines Bonus equivalent to 5% of total PV generated by repeat purchases As shown above, an Active Member can earn bonuses on the PV generated by members repeat purchases as far down as their 8 th line, depending on the course they enrolled in. However, depending on the title or position a member attains, it is possible for them to increase both the percentage by which the PV on certain lines is multiplied, and also increase the line they are paid down to. For example, A, B, F, and G Course members who attain the position of Leader will receive a bonus equivalent to 10% of total PV for their 2 nd to 4 th lines. (I Course members who attain the position of Leader will receive a bonus equivalent to 10% of total PV for their 2 nd and 3 rd lines.) Prerequisites for position of Leader Establish a downline group (consisting of any combination of A, B, F, G, or I Course members) with three Active Members on the 1 st line and two Active Members on the 2 nd line. Note: Active Members on the 2 nd line must be positioned under two different upline members. (See example right). Personally enroll at least one of these downline members. Note: Sub IDs can be counted as personally enrolled members

17 16 Other benefits available to members who attain the position of Leader Members who attain the position of Leader are entitled to purchase the sample sets outlined below. (Excl. tax) Course in which member is enrolled A Course B Course F Course G Course I Course Drink sample set (2 x 720ml bottles) 1 set/month (7,100 yen) 1 set/month (7,100 yen) 1 set/month (7,100 yen) Cosmetic products sample set 9 points worth of products per year (0.5 points worth of products: 950 yen) 1) Only A, B, and I Course members are entitled to purchase the drink sample set. 2) Only F and G Course members are entitled to purchase the cosmetic products sample set. Note: - Only available to Active Members who have maintained Active status for a minimum of three consecutive months prior to the month they wish to purchase the sample. - Must have held the position of Leader the month prior to ordering the sample set. - The word year above refers to period from March 18 of a given year until March 17 of the following year. Special Gifts (approx. three times per year) Members who continue to meet the Leader prerequisites and maintain Active status are eligible to receive new product samples. Samples will be sent at time of new product announcement. Note: - Only available to Active Members who have maintained Active status for three consecutive months prior to the month the gift is to be sent. - Must have held the position of Leader the month prior to ordering the sample set. - An existing product may be chosen as the special gift in place of a new product during periods when no new product launches are planned. 4) Director Bonus (Ongoing bonus; only available to B and G Course members) Members who attain the position of Director are eligible to receive five types of bonuses. Bonus Details 1. 10% Line Bonus 10% for 5 th line. 2. 2% Line Bonus for 9 th and 10 th lines. 3. Bonus equivalent to 4% of the 5 th line Line Bonus paid to all personally enrolled members. (See Diagram 2 on following page for details.) * This bonus is payable even for personally enrolled members who have attained the position of Director. 4. Bonus equivalent to 7% of own unique group s GPV * If any downline group members hold the title of Line Leader or position of Director, the Same Title Compensation rules will apply (refer to the Title Bonus table on page 4 for details). * Members are eligible to receive this 7% bonus for either attaining the position of Director or the title of Line Leader, but may not receive both bonuses for both. 5. Title keep bonus a) Members who maintain the position of Director for a specified 3-month period, will be eligible to participate in Director Meetings (held twice annually) and will receive a travel allowance (amount varies by region). Note: Travel allowance will be paid together with monthly bonus payments.

18 17 Director Meeting eligibility criteria Summer Director Meeting: Hold the position of Director for the three-month period from April to June. Winter Director Meeting: Hold the position of Director for the three-month period from September to November (must also have introduced at least one new member in the one-year period prior to the event). b) Members who maintain the position of Director for the periods specified below will receive sales promotion bonuses calculated based on Fordays total PV for those periods. - Members who maintain the position of Director for the 9-month period from April to December. - Members who maintain the position of Director for the 4-month period from September to December. Note: These bonuses are paid together with monthly bonus payments for the December assessment period. Prerequisites for attaining the position of Director 1) Minimum of five personally enrolled members are active during the relevant assessment period. (All A, B, F, G, and I Course members count as one member.) 2) Member meets the prerequisites for the position of Leader. 3) The structure of the member s downline group meets the conditions outlined in the Director Group Structure Diagram (see Diagram 1 below). Note: This group structure does not need to be maintained after the position of Director has been attained. 4) Total of 238,000 PV (excl. tax) is generated by 1 st to 3 rd lines of member s downline group over a two month period, and member achieves the required group structure in one of these two months (see examples below). (Example 1) April 120,000 PV (Required group structure not achieved) + (excl. tax) May 180,000 PV 1 st line: 3 Active members 2 nd line: 9 Active members 3 rd line 27 Active members (Required group structure achieved) (Example 2) April 30,000 PV (Required group structure not achieved) + May 180,000 PV 1 st line: 3 Active members 2 nd line: 9 Active members 3 rd line 27 Active members (Required group structure achieved) (excl. tax) + June 195,000 PV (Required group structure not achieved) Over 238,000 PV and achieved required group structure for one of two months Qualifies as Director from May Achieved required group structure Over 238,000 PV and for one of two months, but not over achieved required group 238,000 PV; does not qualify as structure for one of two months director from May. Qualifies as Director from June Director Group Structure Diagram Diagram 1 Diagram 2 1 st line: Minimum of 3 Active members 2 nd line: Minimum of 9 Active members 3 rd line: Minimum of 27 Active members A, B, F, G, or I Course members Position Sustainment Requirements (every month) 1) Minimum of five personally enrolled members are Active during the relevant assessment period. 2) Member meets the prerequisites for the position of Leader. 3) Total of 238,000 PV (excl. tax) is generated by 1 st to 3 rd lines of member s downline group.

19 18 5) Title Bonus (Ongoing bonus; only available to B and G Course members) A Title Bonus is paid to any B or G Course member who attains one of four available titles. Eligibility for the various titles is determined based on the structure of the member s downline, as well as their total group PV (GPV). See table below for details. Title Line Leader Star Director Twin Star Director Triple Star Director Members must meet all conditions specified below Condition 1 Condition 2 Condition 3 Condition 4 Condition 5 Downline group expansion At least two Leaders on 1 st line At least one Director on 1 st line At least two Directors on 1 st line At least three Directors on 1 st line Personally enrolled members Total group members 5 Over Over Over Over 2000 Total group PV (excl. tax) Over 142,830 PV Over 714,150 PV Over 3,808,800 PV Over 9,522,000 PV Applicable Title Bonus Same Title Compensation Other (% of total Same title 1 Same title 2 Same title 3 group PV) None 7% 3% None 13% 2% 2% None 20% 2% 1% See P % 2% 2% 1% Regarding Same Title Compensation, each individual leg of a member s downline group is considered separately. To qualify for a Line Leader Title Bonus, a member must hold the position of Leader or higher. To qualify for a Star Director Title Bonus or higher, a member must hold the position of Director. Members who achieve the title of Star Director or higher will receive an additional 2% Line Bonus for their 11 th and 12 th lines. Regarding Conditions 1, 2, and 3 (in table above), only Active Members are counted. Title bonuses paid to downline group members who hold the same title or a lower title are deducted from the Title Bonuses of upline title holders. Members who hold either the title of Line Leader or position of Director are eligible to receive Same Title Compensation if a downline group member is a Line Leader or Director. Triple Star Director qualification/termination criteria Triple Star Director qualification criteria Elevation to the title of Triple Star Director requires a review of a member s performance and eligibility, followed by screening and approval via an interview with the Fordays Board of Directors. Note: - The screening process will include a review of a member s participation in Fordays events, such as incentive trips and the national conference. - If a candidate for Triple Star Director promotion is deemed to have acted inappropriately (see (1) below for list of inappropriate conduct) during the 6-month period prior to applying for promotion, he/she will be ineligible for promotion - If an ID is transferred to a new member via change of name and a title (Twin Star Director or lower) is attached to that ID, the new member will not be able to apply to become a Triple Star Director until they have been an Active Member for a period of at least 12 months. - Generally speaking, a member is expected to switch to a corporate membership at the time of promotion to Triple Star Director. - Fordays will also confirm that a member has been properly declaring their Fordays income prior to approving promotion to Triple Star Director. Triple Star Director termination criteria (1) Conduct such as that outlined below, or conduct that violates the Membership Terms and Conditions, will result in a member being stripped of his/her Triple Star Director title.