Engage Global Consultant Benefits Plan. Engage Global. Consultant Benefits. Engage Global Inc. July 13, 2017 Page 1 of 11
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1 Engage Global Consultant Benefits Plan Engage Global Consultant Benefits Engage Global Inc. July 13, 2017 Page 1 of 11
2 ENGAGE GLOBAL CONSULTANT An Engage Global Consultant is an individual (of legal age) or a legal entity that is an Independent Contractor who contracts with Engage Global and is Licensed to market Engage Global s products in any manner authorized by Engage Global as detailed in the Engage Global Independent Consultant License Agreement. By reference, this document forms part of the Independent Consultant License Agreement. There are two ways to become a Consultant: 1. Complete the Engage Global enrollment process and pay a $29.95 Licensing fee which provides access to the Engage Global Virtual Office, a personalized Website and 24/7 online marketing presence, plus access to the Engage Global App that houses the proprietary artificial intelligence called E.V.I.E. (Engage s Virtual Intelligence Entity). Or 2. Complete the Engage Global enrollment process and purchase a unit of MMF (Hydro or Capsules) for $49.95, and Enrollment is FREE (for price comparison purposes only, this price is equivalent to paying $29.95 for a License and $19.95 for the first unit of MMF). All other benefits are included as indicated above. By selecting the $49.95 option to build a business, for that initial month the Consultant s business is Qualified to earn any Bonuses available to Ranks 1 3 (Engage 1, Engage 2 and Engage 3). The Consultant s business also earns a 20% Direct Bonus and generates 25 Business Volume (the value Engage Global uses to calculate and pay Consultant Benefits). Full details follow An Enroller may, before the end of the calendar month of Enrollment, opt to place both new Customers and new Consultants in any open position under the Enroller s business. Placement of a new Consultant under an open position does not affect the Enroller s status as Enroller when the Enroller elects to remain the Enroller. However, the Enroller may elect to give Enrollment of a Consultant away to another Consultant in their business. Placement of a Customer in an open position results in giving the Enrollment of that Customer away to the Consultant the Customer was placed under. If an Enroller has not elected to place either a new Customer or a new Consultant by the end of the calendar month of Enrollment, default Placement is permanently assigned to the original Enroller. All Enrollment and Placement changes are permitted one time only and are permanent. PRICING A Consultant may enroll Retail Customers, Preferred Customers and other Consultants. Retail Customers purchase Engage Global products at will. Retail Customers may take full advantage of the initial $19.95 one-time offer for a month s supply of MMF Hydro or Capsules. Additional orders, however, cost $65 per unit (see Table 1). Preferred Customers may likewise purchase their first month s supply of MMF for $ Preferred Customers are designated as preferred by choosing to establish a Monthly Convenience Order and enjoy loyalty pricing in the amount of $49.95 per unit. Consultants also pay $49.95 price per unit no Monthly Convenience Order required (See Table 1). Engage Global Inc. July 13, 2017 Page 2 of 11
3 CUSTOMER BONUS & DIRECT BONUS A 20% Customer Bonus is paid to the Enroller on all Customer purchases (Retail and Preferred). An initial $19.95 order generates a Customer Bonus which is paid daily, but does not generates any Business Volume. On all subsequent orders, including Monthly Convenience Orders, 20% is paid monthly and 25 in Business Volume is generated and used to calculate and pay other bonuses (see Table 1). A 20% Direct Bonus is likewise paid to the Enroller on a new Consultant s first $49.95 enrollment order. Plus, as part of their initial purchase, a new Consultant may, at time of Enrollment only, take advantage of a one-time offer to purchase 3 units of product and get a fourth unit FREE. There is no limit on multiples of this offer (i.e. 6 paid units = two free units). Each individual paid unit of product included in the first order, purchased for $49.95, generates a 20% Direct Bonus for the Enroller and 25 in Business Volume (75 for 3 units). Free product does not generate a Direct Bonus or Business Volume. All regular ongoing Monthly Convenience Orders placed by a Consultant generate 50 Business Volume per unit purchased for $49.95 (see Table 1). PRICING, BUSINESS VOLUME AND BONUS SUMMARY Table 1 Purchaser Order Type Unit Business Volume Price per Unit Bonus Retail Customer First Order $ % Preferred Customer First Order $ % Consultant First Order $ % Consultant Free Product $ Retail Customer Retail $ % Preferred Customer Monthly Convenience Order $ % Consultant Monthly Convenience Order $ ** ** Compensated through all remaining portions of the Engage Global Benefits Promotional pricing offered to incentivize team building (may or may not include product giveaways) can alter any associated Business Volume. Please refer to promotion details as applicable. All Bonuses associated with first orders, from both Customers and Consultants, are paid DAILY (before midnight each business day weekends and holidays excluded) when they are in the Engage Global system by 4:00 p.m. Mountain. Bonuses on first orders received after 4:00 p.m. Mountain are processed and paid the following business day. Bonuses associated with ongoing purchases are paid monthly. QALIFICATIONS AND REQUIREMENTS No Personal Business Volume (generated by you plus any personally enrolled Customers) is required to earn the 20% Customer Bonus or the 20% Direct Bonus associated with a first order. Except for Customer Bonuses and Direct Bonuses, a Consultant must be Qualified each month by generating between 50 and 100 Personal Business Volume as specified by Rank (see Table 2). Failure to maintain Qualified status any given month by not meeting Personal Business Volume requirements, will result in Compression of the overall Business Volume generated by the Placement Tree. Compression starts at the bottom of the Placement Tree and happens when a Consultant is found who has generated less Personal Business Volume than the amount specified to be Qualified (or none at all). As illustrated in Engage Global Inc. July 13, 2017 Page 3 of 11
4 the following example, whether the volume of the Inactive Consultant is zero or greater, it will be will be combined with the Volume of the next Active Consultant above for Bonus calculation purposes only (not Qualification) and Bonuses are calculated accordingly. Example: Joseph Enrolls Mark who Enrolls Sue. Mark, including his Personally Enrolled Customers, fails to generate at least 50 Personal Business Volume to be Qualified during the month of May and generates only 25 Personal Business Volume. Both Joseph and Sue generate 100 Personal Business Volume from personal and Customer orders. During the month of May, starting at the bottom of the organization, Sue s Personal Business Volume is added to Mark s Personal Business Volume ( = 125) and for the month of May only, Sue and Mark s joint Personal Business Volume counts as Joseph s second level. As illustrated in the example below, failure to Qualify (generate a minimum of 50 Personal Business Volume from personal and Customer orders) 6 consecutive months, a Consultant will no longer be considered Active. Consequently, the Engage Global Independent Consultant License shall be revoked and the Consultant shall be reclassified as a Customer. Any remaining Active Consultants or any Customers in the organization built below the reclassified Consultant, who is now a Customer, will permanently Roll Up to the next Active Consultant in the Enrollment Tree. Should this occur, please note that the Enroller status will be permanently reassigned accordingly. Example: Joseph Enrolls Mark who Enrolls Sue. Mark and his Personally Enrolled Customers purchase less than 50 PV required for 6 consecutive months while Joseph and Sue each remain active by generating at least 50 PV during the same 6 consecutive months. At the end of six months, Mark is reclassified as a Customer under Joseph and is no longer an Engage Global Consultant. Sue permanently Rolls Up to Joseph as his new Direct. Sue s Enrollment, however, is reassigned to Joseph. Monthly Personal Business Volume, including a personal Monthly Convenience Order, is required to earn other bonuses detailed in the Engage Global Benefits Plan (see Table 1). Monthly Convenience Orders are not required to earn Bonuses, but are encouraged. Also, Customers on a Monthly Convenience Order receive 10% of the $49.95 purchase price in Engage Bucks that can be exchanged for product at the rate of one dollar per Engage Buck. Bonuses are not paid on purchases made with Engage Bucks and Business Volume is not generated. TEAM BONUS QUALIFICATIONS Table 2 Rank Title Engage Engage Engage Liberty Liberty Liberty Freedom Freedom Freedom Legacy Legacy Legacy Ambassador Personal Bus Volume Org Bus Volume ,500 3,000 6,000 10,000 20,000 50, , ,000 1,000,000 3,000,000 Minimum Active Lines 4 5 (Max 50% 4 2 Rank 2 Rank Organization Volume Rank Rank 10 2 Rank 11 1 Rank 6 2 Rank 6 From 1 Line beginning 1 Rank 7 2 Rank 1 rank 1 Rank 11 1 Rank 12 at Rank 3) 8 10 The Engage Global Team Bonus is calculated based on the Organization Business Volume (Business Volume generated by the Placement Tree which includes the Enrollment Tree which forms as one person Enrolls another person much like a family tree). A Line forms with each Direct Consultant you have either personally Enrolled or who has been Placed frontline. A new Level forms going down each Line from Engage Global Inc. July 13, 2017 Page 4 of 11
5 one Consultant to the next. Beginning with Rank 3 (Engage 3), no more than 50% of the Organization Volume can come from one Line this is called the 50% Rule. Illustration 1.1 provides an example of an Enrollment Tree where A Enrolls B who Enrolls C, D, E and E Enrolls F. We will use this illustration as the basis of our subsequent discussion about Placement. Illustration 1.1 A B C D E F As discussed, Personally Enrolled Consultants may be Placed anywhere in the originating Consultant s business and that Consultant may choose to either keep the Enrollment or give it away (permanently). When a Consultant is Placed within the first eight levels, the Organization Business Volume generated will contribute to the Team Bonus depending on achievement of Rank qualifications and the number of Levels accessed by Rank. Placement can be given away without restriction. However, Enrollment can only be given to someone within the Enroller s Enrollment Tree or it creates a loop in the programming logic used to calculate Bonuses. The ability to Place Consultants can confuse the issue so it is important to clarify. For example, A Places B frontline and B Places E frontline then B Places D under E and C under D. Wanting to help C and D, E wants to give away Enrollment of F and Place them under C. This is not allowed because, as shown in the governing Enrollment Tree, Illustration1.1, E is Crossline to C and Enrollment cannot be given to a Crossline. Placement of F under C is not an issue. Illustration 1.2 A B E F D C Engage Global Inc. July 13, 2017 Page 5 of 11
6 For Team Bonus calculation purposes, Customers count as an extension of their Enroller. However, for qualification purposes only, Customers form a Virtual Line. All personally Enrolled Customers form this Virtual Line. Business Volume generated by Customer and Consultant purchases (Organization Volume) is used to calculate Team Bonuses as indicated in Table 3. Organization Business Volume requirements apply by Rank. Calculations, are processed by multiplying the allocated percentages by the Organization Business Volume generated, Level by Level. Full monthly Compression and Roll Up always apply. TRUE INFINITY BONUS TEAM BONUS Table 3 Rank Title Engage Engage Engage Liberty Liberty Liberty Freedom Freedom Freedom Legacy Legacy Legacy Ambassador Org Bus Volume ,500 3,000 6,000 10,000 20,000 50, , ,000 1,000,000 3,000,000 Directs Level 1 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% Level 2 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% Level 3 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% Level 4 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% Level 5 7% 7% 7% 7% 7% 7% 7% 7% 7% Level 6 7% 7% 7% 7% 7% 7% 7% 7% Level 7 7% 7% 7% 7% 7% 7% 7% Level 8 7% 7% 7% 7% 7% 7% 7% The True Infinity Bonus is calculated based on the entire Volume generated by the Placement Tree beginning with Level 9 through an infinite number of Levels. The True Infinity Bonus offers a powerful way for Leaders (Ranks 7 to 13 Freedom 1 to Ambassador) to be compensated on ALL Volume they help develop (see Table 4). The True Infinity Bonus is a powerful portion of the Engage Global Consultant Benefits and it has the potential to overpay as the organization grows and Infinity Bonuses begin to stack on top of Infinity Bonuses. As a control, Engage Global sets a 45% Payout Cap on the entire Engage Global Consultant Benefits plan. We apply the Payout Cap to the True Infinity Bonus in such a manner that there are always True Infinity Bonuses paid, but they are prorated as necessary to protect the Cap. TEAM BONUS MATCH TRUE INFINITY BONUS Table 4 Rank Engage Engage Engage Liberty Liberty Liberty Freedom Freedom Freedom Legacy Legacy Legacy Title Ambassador True Infinity Starting with Level 9 through an infinite number of levels. 1% 1.5% 2% 2.5% 3% 3.5% 4% Matching Bonuses are a percentage of the Team Bonus (paid on Levels 1-8) earned by a Leader (Ranks 8 to 13 Freedom 2 to Ambassador). An Upline Leader, who qualifies to earn a Team Bonus Match can be paid through as many as four Generations (defined by each occurrence of a Rank 8 Freedom 2 or higherranking Consultant encountered down any given Line of the entire Organization, regardless of the Level where they occur). As indicated in Table 5, Rank 7 (Freedom 1) qualifies for 1 Generation of Matching Engage Global Inc. July 13, 2017 Page 6 of 11
7 bonus at the percentage specified. Rank 8 (Freedom 2) qualifies for two Generations of Matching Bonus. Rank 9 (Freedom 3) qualifies for 3 Generations. Ranks 10 to 13 (Legacy 1 to Ambassador) each qualify for four Generations of Matching Bonus at the corresponding percentage specified by Rank. TEAM BONUS MATCH Table 5 Rank Engage Engage Engage Liberty Liberty Liberty Freedom Freedom Freedom Legacy Legacy Legacy Title Ambassador Generation 1 15% 20% 20% 20% 25% 30% 35% Generation 2 Matched on the sequential occurrence of any Rank 7, 20% 20% 20% 25% 30% 35% 8, 9, 10, 11, 12 or 13 down any given Line, starting at Generation 3 Level 1 20% 20% 25% 30% 35% Generation 4 20% 25% 30% 35% RANK ADVANCEMENT BONUS In recognition of advancement in Rank by meeting all qualifications specified, Engage Global offers Consultants the following Rank Advancement Bonuses which initiate the month the qualifications are met. To continue earning Rank Advancement Bonuses, the Consultant must Rank-qualify each Payout Month specified (see Table 6). RANK ADVANCEMENT BONUS Table 6 Rank Title Engage Engage Engage Liberty Liberty Liberty Freedom Freedom Freedom Legacy Legacy Legacy Ambassador Bonus $100* $150 $300 $600 $1,000 $2,000 $5,000 $12,500 $35,000 $100,000 $300,000 Enroller Bonus $100 $600 Payout Months For example, if a Consultant qualifies to earn the $5,000 Freedom 3 Rank Advancement Bonus, the Consultant will receive the first of four $1,250 installments the first month. If the Consultant fails to qualify the second month, the Consultant forfeits the second installment. If a Consultant qualifies the remaining third and fourth months, the Consultant will get the third and fourth installments. TERMS AND DEFINITIONS (In order of appearance) As listed below, Engage Global uses a variety of terms in its description of the Engage Global Benefits: CONSULTANT Consultants are independent contractors and are not purchasers of a franchise or a business opportunity. Consultants are not employees of engage Global and are responsible for their own time and hours dedicated to building their own Social Direct Marketing business and are licensed to utilize Engage Global s business platform to assist with their method of sale. Consultants are further responsible for paying all taxes due on bonuses earned. INDEPENDENT CONSULTANT LICENSE AGREEMENT The Legal contract establishing Engage Global s relationship with an Independent Consultant as defined in the Engage Global Statement of Policies. E.V.I.E. (Engage s Virtual Intelligence Entity) Engage Global Inc. July 13, 2017 Page 7 of 11
8 Evie is a proprietary sales, training and communications system that utilizes artificial intelligence and big data to take a Customer prospect from point of entry to sale and a Business prospect from point of entry to the highest desired level of achievement. QUALIFIED Generate the Personal Volume specified by Rank each calendar month through personal and Customer purchases. DIRECT BONUS Paid to the Enroller 20 percent of a new Consultant s first order, which may include one of the $49.95 registration options, plus as many of the Buy 3 get 1 Free promotions as desired available only with an initial purchase. BUSINESS VOLUME A value assigned to each product and used to calculate Team Bonuses and True Infinity Bonuses. Business Volume is also used to determine Rank qualifications. Business Volume includes all personal orders and personal Customer orders. Business Volume is used to determine whether a Consultant is Qualified. PLACEMENT/PLACEMENT TREE Upon Enrollment, an Enroller may opt to Place a new Enrollee beneath someone else to help strengthen the team. Team Bonus calculations treat the Placement Sponsor as the Enroller for the Team Bonus and for any other Bonuses that are based on the Team Bonus. The Placement Tree tracks the placement relationships from person to person. It also incorporates the Enrollment Tree (described below) for Team Bonus calculations. ENROLLER A Consultant who directly invites and Enrolls either Customers and/or Consultants to consume Engage products and/or participate in our Social Direct Marketing Opportunity. Only Consultants may Enroll both Customers and Consultants to take full advantage of the Engage Global Social Direct Marketing Opportunity. Unless the Enroller chooses to give Enrollment away permanently or has relinquished Enrollment due to inactivity and the resulting Roll Up, they will always remain the Enroller and as such will earn any associated Enrollment Bonuses available in the Rank Advancement portion of the Consultant Benefits. If the Enroller opts to give Enrollment away, the recognized Enroller becomes the person under whom they were Placed. Such movements are permanent. ENROLLMENT TREE A linear structure that initiates with a Consultant and connects them to those Customers and Consultants they personally Enroll and to those Consultants and Customers that person personally enrolls, and so forth. Everyone in the Enrollment Organization connects back to an original Enroller. RETAIL CUSTOMER A consumer who purchases the Engage Global products at the Suggested Retail Price of $65. The difference between the Suggested Retail Price and the Consultant Price of $49.95 is $ Engage Global utilizes $15.05 to offset administrative costs associated with Retail Customers and to avoid creating a conflict with the Monthly Convenience Order program. Less than 2% of Engage Global sales are derived from Retail Customers who pay $65 per unit of product. Engage Global Inc. July 13, 2017 Page 8 of 11
9 PREFERRED CUSTOMER A consumer who establishes a Monthly Convenience Order (see below) and pays the discounted loyalty price of $49.95 per unit of product ordered directly from Engage Global. Additional orders enjoy the same discounted pricing. Preferred Customers also earn Engage Bucks (see below). MONTHLY CONVENIENCE ORDER (MCO) A recurring order that automatically processes on the date each calendar month the Consultant or Preferred Customer has selected. A Consultant or a Preferred Customer may have multiple Convenience Orders. In recognition of consumer loyalty, Additional orders enjoy the same pricing. Convenience Orders may be paid for: 1) with a Credit Card on file or 2) via automatic debit from the Consultant s ewallet provided by Engage Global. CUSTOMER BONUS Paid to the Enroller 20 percent of all orders placed by a Customer or Preferred Customer. PERSONAL VOLUME The Business Volume personally generated by a Consultant plus the Business Volume generated from purchases made by Personally Enrolled Customers. RANK vs TITLE Rank governs Bonus eligibility while Title is for Recognition. Example: A Consultant may have achieved the Title of Freedom 2 and will continue to be identified at that highest Title for recognition purposes. However, afterwards, if the Consultant only meets actual Rank 7 requirements associated with a Freedom 1 Title, the Rank, not the Title, determines the benefits that the Consultant will earn that Bonus Period (calendar month). COMPRESSION When a Consultant fails to Qualify by generating the minimum Personal Volume required by Rank, any Business Volume generated will move to the next Qualified Consultant and for Bonus calculation purposes only, will be compensated as though that volume was generated by that Consultant where the Business Volume was moved. Compression does not affect Qualification. ACTIVE Generate a minimum of 50 Personal Volume (including Customer purchases) at least once every 6 consecutive months. Failure to remain Active will result in the Engage Global Independent license being revoked and the Consultant being reclassified as a Customer. Any Downline (Customers and Consultants) will permanently Roll Up one level to the next Active Consultant above. An inactive Consultant is free to re-enroll under any Enroller they choose and must notify Engage Global before placing an order. ROLL UP When a Consultant fails to Qualify for 6 consecutive months, their Engage Global Independent Consultant License is revoked and the Consultant is reclassified as a Customer. Any remaining Active Consultants in the organization built below them will permanently Roll Up to the next Active Consultant above in the Enrollment Tree and in the Placement Tree (as applicable). Engage Global Inc. July 13, 2017 Page 9 of 11
10 ENGAGE BUCKS Customers earn 10% of a Monthly Convenience Order in the form of Engage Bucks as an incentive to maintain their Monthly Convenience Order. As Engage Bucks accumulate, they may be exchanged (one Bucks per dollar) to obtain product. No Volume Points are awarded and no Bonuses are paid on products acquired with Engage Bucks. Engage Bucks earned is displayed on the Customer Dashboard. A minimum of 50 Engage Bucks are required per unit of product redeemed. Failure to maintain a Monthly Convenience Order shall result in the loss of any Engage Bucks accumulated. ewallet Upon Enrolling in Engage Global, each new Consultant is given an ewallet account. Bonuses are deposited into a Consultant s ewallet. A Consultant may allow Bonuses to accumulate in their ewallet until the Consultant chooses to withdraw them by requesting a check from Engage Global (no limit on the number of withdrawals per month). A Consultant may also use Bonus funds to purchase products. LINE An individual who is Enrolled and/or Placed directly below a Consultant, with no one in-between, initiates a Line. DIRECT A Consultant who has been Enrolled and/or Placed frontline to the Enroller. LEVEL Levels form as you go down each Line from one Consultant to the next. 50 PERCENT RULE Beginning with Rank 3 (Engage 3) No more than 50 percent of the Organization Volume may be generated from any one Line. CROSSLINE Anyone under a separate Line of an Enroller s Enrollment Tree VIRTUAL LINE For Qualification purposes only, Engage Global allows the Business Volume generated by Customers to count as one of the four Lines required to maximize the earnings potential of the Engage Global Consultant Benefits Plan. PAYOUT CAP Engage Global pays Bonuses on no more than 45% of the Business Volume generated each month. Due to the nature of some portions of the plan that can potentially overpay, this Payout Cap will be used, only if needed, as a control. As necessary, the cap will be applied first to the True Infinity Bonus and then to the Team Bonus Match. In both cases, the total percentages allotted for these bonuses will be pooled and reduced by the amount necessary to protect the 45% Payout cap. Consultants will then be paid a pro rata amount based on Rank and the adjusted bonus percentages for which the Consultant is Qualified. UPLINE The Consultants in the Enrollment/Placement Tree(s) above a given Consultant who preceded that Consultant s Enrollment. GENERATION Engage Global Inc. July 13, 2017 Page 10 of 11
11 Defined by the occurrence of a Rank 7 (Freedom 1) or higher-ranking leaders in any given Line of the entire Placement Organization, regardless of the Level where that Level occurs. A Generation Starts with the Rank 7 or higher-ranking leader and goes down to the next Rank 7 or higher-ranking leader. Engage Global Inc. July 13, 2017 Page 11 of 11
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