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1 Achieve Magazine2 Achievers Invitational3 Active IBO4 Annual Volume5 Automated Order Center (AOC)6 Associate IBO7 Automatic Renewal8 Automatic Shipments9 Awards and Bonuses10 Award Volume11 Bonus Information Summary (BIS)12 Bracket13 BSMAA14 Builder15 Bundles16 Business Conferences17 Business Reference Guide18 Business Support Materials (BSM)19 Business Support Materials Arbitration Agreement20 Business to Business (b2b)21 Business Volume (BV)22 Buy-Back Rule23 BV24 BV/PV Ratio25 Client26 Code of Ethics27 Consumables28 Coreline Products29 Crown30 Crown Ambassador31 Customer Satisfaction Guarantee32 Data Sheet33 Depth34 Diamond35 DishDrops36 Ditto Scheduled Orders37 Double Diamond38 DLTtape39 Donations by Quixtar40 Double X41 Double X Savings Stamp Program42 Downline43 Driver's Elite/Auto Plan44 Drop Code45 Easter Seals46 Electronic Business Information Summary (EBIS)

47 eCelerate Cash Account48 Emerald49 Endeca50 End-of-Month Order (EOM)51 eSpring52 Executive Diamond53 Explode SKU54 Expo55 Federal Trade Commission56 Fiscal Year57 Foster Sponsor58 Founders Achievement Award (FAA)59 Founders Crown60 Founders Crown Ambassador61 Founders Diamond62 Founders Double Diamond63 Founders Emerald64 Founders Executive Diamond65 Founders Platinum66 Founders Ruby67 Founders Sapphire68 Founders Triple Diamond69 Frontline70 Gift & Incentive Program71 Gold Producer72 Gross Income73 Ground Express Delivery74 Group Leader75 Group Volume76 Health77 Health Tech78 Home79 Independent Business Owner (IBO)80 IBO Cost81 IBO Facts82 IBOCS (IBO Communication System)83 IBO Number84 i-Commerce85 ID Number86 IBO Registration Form87 IBO Association International (IBOAI)88 IBO Association International Board (IBOAI Board)89 IBO Benefits Association (IBOBA)90 Independent Business Ownership Plan (SA-4400)91 International Sponsor92 International Sponsoring93 Invoice Summary94 Leadership Bonus95 Leg (or Business Unit)96 Legal Bulletins97 Line of Affiliation (LOA)98 Line of Sponsorship (LOS)99 Material Safety Data Sheet (MSDS)100 MCI Rewards Program101 Member102 Member/Client Volume Cost

103 Member/Client Volume Requirement (MCVR)104 MicroStrategy105 Monthly Depth Bonus Adjustment (MDA)106 Network Savings Plan Partners107 New Platinum Seminar108 New Silver Producer Report (SA-939)109 Nutrilite®110 Nutrilite Savings Stamp Program111 Nutrition & Wellness112 Partner Stores & Services113 Pass-up Volume114 Percentage Brackets115 header?116 Performance Bonus117 Personal Care118 Personal Group119 Personal Group Volume120 Personal Identification Number (PIN)121 Personal Volume122 Peter Island Resort and Yacht Harbor123 Pin Level124 Platinum125 Premium Delivery126 Price Code127 Price Disclaimer128 Product Pack129 Product Support Materials (PSM)130 Prospect131 PV/BV Inquiry132 PV/BV Ratio133 PV/BV Transfer134 Q-12135 Quixtar News136 QuixNet.net137 Quixtar Growth Incentive (QGI)138 Quixtar Registration Literature Pack139 Quixtar Trade Name, Trademarks & Copyrights140 Quixtar Inc.141 Registration142 Renewal Form143 Residuals144 Retail Markup145 RSA Security146 Ruby147 Rules of Conduct of Independent Business Owners148 SA8149 SA-4400150 Sales151 Sapphire152 Self153 Service Centers154 Servicing Arrangements155 Seventy Percent (70%) Rule156 Silver Producer157 Six-Month Inactivity Rule158 SKU

159 SL (Sponsor Leader)160 Sponsor161 Standard QBI Disclosure162 Store For More163 Taxes and Writeoffs164 TEKsystems165 Tolsom166 Tools167 Triple Diamond168 Upline169 Volume IMC170 What You Want Magazine171 XS Sports Nutrition172 1099-MISC173 1st Dibs Pack VA-0913174 25% Sponsor

Achieve Magazine

The Quixtar magazine for Independent Business Owners, about IBOs and their achievements.

Achievers Invitational

A Business Conference that qualified Platinums may be invited to attend as part of the Quixt

Active IBO

An IBO who attempted to make a retail sale, or presented the Independent Business Ownership Plan, orreceived bonus money, or attended a company or IBO meeting during the previous year.

Annual Volume

Used to determine Silver Producer/Platinum IBO qualification months. Annual volume includes an IBO'sPersonal Volume, plus pass-up from non-25% Group Leaders and all downline associate IBO (Class 9)volume. It does not include the volume from non-25% IBOs above a maximum performance bonus level(25%) Foster sponsored IBO. Negative volume is included/applied.

Automated Order Center (AOC)

A touch-tone telephone ordering system, available 24 hours a day. It can be used to order Store forMoreTM and Quixtar-exclusive products, using a credit card or Fast Pay.

Associate IBO

Any IBO below the 25% Sponsor Performance Bonus level.

Automatic Renewal

Provides IBOs and Members a way to renew automatically. Requires authorization to sign-up, and a meansof payment (credit card or Fast Pay) on file.

Automatic Shipments

(Auto Ship) Platinums may instruct Quixtar to automatically ship them product to make up for a shortage of

volume (up to a specific percent) qualifications. If Quixtar determines the IBO has missed the specifiedqualification, as well as other applicable incentive program qualifications, and the shortage falls within thespecified percentage margin, an order is prepared from a list of predetermined product, shipped and billedby credit card.

Awards and Bonuses

To recognize and reward IBO achievements, Quixtar has an extensive award and bonus system. Pins andplaques are awarded in honor of business-building achievements, and recognition is given in the Achieve®Magazine. To be eligible for these awards, an IBO must be in compliance with all the provisions of theCode of Ethics and the Rules of Conduct for Quixtar IBOs.

Award Volume

Includes an IBO's Personal Volume and all downline Associate IBO volume; it does not include the volumefrom 25% IBOs. Award Volume is used to determine Silver and Platinum qualification months. Negativevolume is included/applied.

Bonus Information Summary (BIS)

Available online to all IBOs who qualify for a bonus and are paid by Quixtar. The BIS lists all IBOs within agroup, in line-of-sponsorship order. The Personal PV/BV, Group PV/BV, Personal A/R, and Group A/Ramounts are displayed for each Quixtar-powered business owner, based on orders and other transactionsthrough Quixtar. The applicable bonus statements are included.

Bracket

IBOs are paid a Performance Bonus based on their monthly Group PV bracket.

BSMAA

Business Support Materials Arbitration Agreement. Introduced at registration, BSMAA applies the samearbitration procedures used in disputes related to business and applies to any disputes involving separateBusiness Support Materials-related issues. The BSMAA SA 2033 [PDF] is available online.

Builder

An IBO that retails product and sponsors others in the business.

Bundles

Special groupings of related products (for example, laundry care, skin care, nutritional) that Quixtarpackages occasionally for promotional purposes.

Business Conferences

A part of Quixtar Business Incentives. Quixtar business owners are eligible to receive invitations toBusiness Conferences, such as New Platinum Seminar, Achievers Invitational, Diamond Club, ExecutiveDiamond Club, and Peter Island, as Quixtar's way of recognizing them for reaching specific goals.

Business Reference Guide

A complete how-to guide that includes the rules, regulations, and tips on managing your IndependentBusiness, plus details on award qualifications, how to calculate bonuses, and more. (SA-1500Q)

Business Support Materials (BSM)

Motivational and/or training aids independently produced and distributed by some IBOs for purchase byother IBOs. BSM may include books, magazines and other printed materials, audio tapes, video tapes,software, websites, internet services and other electronic media, rallies, meetings, and educational seminars.

Business Support Materials Arbitration Agreement

Business Support Materials Arbitration Agreement. Introduced at registration, BSMAA applies the samearbitration procedures used in disputes related to business and applies to any disputes involving separateBusiness Support Materials-related issues. The BSMAA SA 2033 [PDF] is available online.

Business to Business (b2b)

The Quixtar department that helps Independent Business Owners set up their commercial clients with30-day accounts. The staff also assists with Gift & Incentive Albums and bulk merchandise sold tobusinesses.

Business Volume (BV)

Every product has an established BV amount, a dollar figure that is totaled each month to calculate monthlyand annual bonuses. An IBO's monthly Performance Bonus is a certain percentage (between 3% and 25%)of his/her BV. All bonus payments are calculated on BV.

Buy-Back Rule

This rule protects IBOs against inventory loading and assures that any IBO who decides to relinquish his orher business will not be left with unwanted products, literature, and sales aids.

BV

Business Volume. Every product sold has an established BV amount, a dollar figure that is totaled eachmonth to calculate monthly and annual bonuses. An IBOs monthly Performance Bonus is a certainpercentage (between 3% and 25%) of his or her BV. All bonus payments are based on BV.

BV/PV Ratio

The average ration for Home, Health, and Beauty products as of September 1, 2002 is 2.70. The average forall other products is 2.00.

Client

A retail customer who, by being registered with Quixtar, is allowed to purchase directly.

Code of Ethics

All business owners agree to conduct their business according to these governing principles.

Consumables

Products that are continually utilized or consumed, and thus, can be sold month after month, year afteryear. Examples: L.O.C.® Multi-Purpose Cleaner, SA8® Laundry Concentrate, Artistry® Colour cosmetics.

Coreline Products

Company-produced products found in the Choices Catalog (as opposed to third-party manufacturedproducts found in the Store for MoreTM Catalog).

Crown

You can qualify as a Crown if you either:

: * Personally, internationally, or foster-register 18 groups (3 must be North American), each of which qual or: * Attain Diamond qualification for 6 months of the fiscal year (6 of your groups must be North American),

Crown Ambassador

You can qualify as a Crown Ambassador if you either:

* Personally, internationally, or foster-register 20 groups (3 must be North American), each of whichqualifies at the 25% Performance Bonus level for at least 6 months of the fiscal year

or

* Attain Diamond qualification for 6 months of the fiscal year (6 of your groups must be North American),and generate at least 27 FAA credits during the fiscal year.

Customer Satisfaction Guarantee

Quixtar stands behind the quality of our products and guarantee your satisfaction. If, for any reason, you tryour product and are not completely satisfied, you may return it within 180 days of purchase for an exchangeor refund of the product price and applicable tax. (Note: Specific limited guarantees apply to designatedproducts.) This satisfaction guarantee does not apply to IBO purchases for stock or inventory.

Data Sheet

Monthly data sheets provide Silver IBOs and above with monthly updates on their business activity.

Depth

When you register an IBO, that IBO is in your downline or in your depth. "Building depth" is the process bywhich you assist those whom you have registered as IBOs to register others as IBOs. When you registersomeone, they are "one in depth" from you, or your organization is "one level deep." Their registered IBOsare "two deep" or "two in depth" from you, making your organization "two levels deep," and so on.

Diamond

You can qualify as a Quixtar Diamond if you personally, internationally, or foster-register 6 or more groups(3 must be North American), each of which qualifies at the 25% Performance Bonus level for at least 6months of the fiscal year.

DishDrops

Quixtar’s exclusive brand of Dish soap, available in liquid, powder, and tablet. Nothing attacks sticky,stubborn starch and protein leftovers like the dual-enzyme formula in DISH DROPS Automatic DishwasherTablets. Just scrape the scraps, skip the rinsing beforehand, and let the dishwasher do the rest. One citrus-scented tablet gets dishes clean without measuring. Doing the dishes doesn't get any easier.

Ditto Scheduled Orders

A Quixtar service that provides automatic delivery of products based on a customer-determined shippingschedule. Payment is by Visa®, MasterCard®, or Discover® debit or credit cards.

Double Diamond

IBOs can qualify as a Double Diamond if you either:

* Personally, internationally, or foster-register 12 or more groups (3 must be North American), each of whi or * Attain Diamond qualification for 6 months of the fiscal year (6 of your groups must be North American), a

DLTtape

One of Quixtar’s key IT business partners. For more information, see Quixtar Introduces a New BusinessModel to the Web.

Donations by Quixtar

Quixtar and its IBOs have for many years supported Easter Seals with their fundraising and donationefforts. Periodically, Quixtar and its IBOs will make donations to the American Red Cross and other reliefagencies.

Double X

A Quixtar exclusive product, Double X is Nutrilite’s® leading Vitamin/Mineral/Phytonutrient Supplement.For more information, see Nutrilite.

Double X Savings Stamp Program

An incentive program to provide users with free Nutrilite® Double X® refills. Each unit of Double XSupplement has a proof of purchase (POP) imprinted on the carton end-flap. Ten POPs can be redeemedfor a free box of Double X Supplement (with zero PV/BV).

Downline

Those IBOs who make up your group. This includes all the IBOs you personally registered, plus all thepeople they have registered as well.

Driver's Elite/Auto Plan

Driver's Elite is an automotive plan available to IBOs. This program is for personal use only and no PV/BVis awarded to IBOs for using or referring others to the program.

Drop Code

A code used by Quixtar Service Centers to designate areas of distribution, delivery schedules, and carriers.Order and ship days are determined by the "drop code" for the geographic region. Coreline product ordersmust be placed by the stated deadline in order to ship and reach IBOs by the delivery day specified by thedrop code. All individual parcels of a Service Center order have the drop code on the label to facilitatesorting.

Easter Seals

In 2003, Quixtar became a national sponsor of Easter Seals and a presenting sponsor of Walk With Me,Easter Seals’ signature event. Quixtar encourages IBOs to support this worthy organization. For more

information about opportunities to participate in an Easter Seals Walk With Me program, please visit TeamQuixtar.

Electronic Business Information Summary (EBIS)

IBOs who have reached the Platinum level may request to receive their monthly business reports (BIS)electronically through their email.

eCelerate Cash Account

An electronic payment system that provides U.S. IBOs a way to receive and send money quickly andefficiently.

Emerald

You can qualify as an Emerald if you attain Platinum qualification, and personally, internationally, orfoster-register, 3 or more groups, each of which qualifies at the 25% Performance Bonus level for at least 6months of the fiscal year.

Endeca

One of Quixtar’s key IT business partners, Endeca powers Quixtar.com’s site search engine. For moreinformation, see Quixtar Inc. Selects Endeca InFront with Guided Navigation for Interactive Online Search.

End-of-Month Order (EOM)

On the last ordering day of the month, order-authorized IBOs can place an order to increase that month'sPV/BV, even if it is not their regular order day. All mail-in orders received by 5 p.m. (ET), telephone ordersor electronic orders received by 11:59:59 p.m. (ET) will be counted toward that month's PV/BV. Ordersreceived after those times will be credited to the new month.

eSpring

A Quixtar exclusive brand, eSpring is one of the first in-home water filtering systems to combine ultravioletlight with a patented carbon block filter. eSpring reduces more than 140 possible health-effect contaminantsfrom tap water and destroys microorganisms.

Executive Diamond

You can qualify as an Executive Diamond if you either:

* Personally, internationally, or foster-register 9 or more groups (3 must be North American), each of whic or * Attain Diamond qualification for 6 months of the fiscal year and generate at least 10 FAA credits during

Explode SKU

Often used to produce a stock number for each box being shipped. For example, there are six boxes for thegym set -- each box has its own stock number but is ordered under a blanket stock keeping unit (SKU) bythe IBO.

Expo

An Expo is an event where various products and services are displayed and promoted. Employees fromdifferent corporate departments staff the booths and Independent Business Owners attend to ask questions

and obtain information.

Federal Trade Commission

A FTC judge, supported by the entire Federal Trade Commission, has deemed that the business plan usedby Quixtar is legal. In fact, it has been considered the plan to be followed in its industry. The QuixtarIndependent Business Ownership Plan is based on a proven plan that has been used legally and successfullyfor the past 40 years. For more information see Quixtar Facts; The Quixtar Business Opportunity.

Fiscal Year

Quixtar's fiscal year is January 1 to December 31 (calendar year).

Foster Sponsor

When sponsoring internationally, this is an IBO authorized to conduct business in that market who providesthe IBO you have sponsored with products, training, and motivation.

Founders Achievement Award (FAA)

These discretionary cash awards are presented to IBOs who demonstrate extraordinary businessdevelopment and exhibit high ethical and business standards. To qualify, you must be a Diamond Bonusrecipient with a minimum of 8 FAA credits. The first time you accumulate 40 FAA credits or more (inincrements of 5), you’re eligible to receive a special One-Time Cash Award.

Founders Crown

You can qualify as a Founders Crown if you either:

* Personally, internationally, or foster-register 18 groups (3 must be North American), each of which quali or * Attain Diamond qualification for 6 months of the fiscal year (6 of your groups must be North American), a

Founders Crown Ambassador

You can qualify as a Founders Crown Ambassador if you either:

* Personally, internationally, or foster-register 20 groups (3 must be North American), each of which quali

or

* Attain Diamond qualification for 6 months of the fiscal year (6 of your groups must be North American), a

Founders Diamond

You can qualify as a Founders Diamond if you either:

* Attain Diamond qualification for all 12 months of the fiscal year or * Attain Diamond qualification for 6 months of the fiscal year (except all 6 groups must be North American)

Founders Double Diamond

You can qualify as a Founders Double Diamond if you either:

* Personally, internationally, or foster-register 12 or more groups (3 must be North American), each of whi or * Attain Diamond qualification for 6 months of the fiscal year (6 of your groups must be North American), a

Founders Emerald

You can qualify as a Founders Emerald if you attain Emerald qualification for all 12 months of the fiscalyear.

Founders Executive Diamond

You can qualify as a Founders Executive Diamond if you either:

* Personally, internationally, or foster-register 9 or more groups (3 must be North American), each of whic or * Attain Diamond qualification for 6 months of the fiscal year (6 of your groups must be North American), a

Founders Platinum

You can qualify as a Founders Platinum if you attain Platinum qualification for all 12 months of the fiscalyear.

Founders Ruby

You can qualify as a Founders Ruby if you attain Ruby qualification for all 12 months of the fiscal year.

Founders Sapphire

You can qualify as a Founders Sapphire if you attain Sapphire qualification for all 12 months of the fiscalyear.

Founders Triple Diamond

You can qualify as a Founders Executive Diamond if you either:

* Personally, internationally, or foster-register 9 or more groups (3 must be North American), each of whic or * Attain Diamond qualification for 6 months of the fiscal year (6 of your groups must be North American), a

Frontline

The IBOs you personally register, whether or not they develop a downline group of their own. When anIBO directly registers a new person, the new IBO becomes part of that person's "frontline."

Gift & Incentive Program

A collection of more than 20 Gift & Incentive Albums -- each a 16-page mini-catalog. The giver choosesthe price range ($20-$500) and the category (general merchandise, specialty gifts, vacations, etc.). Therecipient selects the gift of his or her choice, with online redemption available. Widely used for personalgifts as well as incentive programs for small or mid-size companies. Sample albums and promotionalmaterials are available. Gift redemption is available online at OrderMyGift.com.

Gold Producer

You can qualify as a Gold Producer if you attain any 3 qualified Silver Producer/Platinum months within

the fiscal year, which is from September through August. Internationally registered groups may not be usedfor Gold Producer qualification.

Gross Income

The amount an IBO receives from retail sales, minus the cost of goods sold, plus the amount ofPerformance Bonus retained. There may be significant business expenses, mostly discretionary, that may begreater in relation to income in the first years of operation. Business expenses are subtracted from grossincome to arrive at net income.

Ground Express Delivery

One of three delivery methods available for Quixtar orders. Your order ships next business day; delivery in3-5 business days. Ground Express is not available for items shipped separately or truck-shipped items.

Group Leader

The individual that represents a leadership role to an IBO group. A Group Leader may be a 25% Sponsor(Class 6), Silver Producer (Class 4), or Platinum (Class 2).

Group Volume

Includes an IBO's Personal Volume and all downline Associate IBOs' volume. This volume does not includethe volume from 25% IBOs. This volume is used to determine Silver and Platinum qualification months.Negative volume is included/applied. See also Award Volume and Personal Group Volume.

Health

One of Quixtar’s primary product categories. These products include food supplements, nutritiousbeverages, weight control products, and sports nutrition. Please see Nutrilite, Trim Body System andXSGear for more information about Quixtar health products.

Health Tech

One of Quixtar’s primary product categories. These products include Air Treatment System, iCookTMCookware, Magna Bloc® Therapeutic Magnets and eSpring® water filtering systems.

Home

One of Quixtar’s basic product categories. It includes household cleaning, air freshener, car, garden, floor,kitchen, and laundry care products. Please see SA8®, LOC®, and DishDrops®.

Independent Business Owner (IBO)

The owner of an independent business powered by Quixtar, pursuant to a contractual relationship withQuixtar Inc.

IBO Cost

The price at which IBOs and Members may purchase merchandise from Quixtar.

IBO Facts

An online resource for Independent Business Owners produced by the IBOAI. IBO Facts provides straightanswers to tough questions in order to help IBOs’ professional growth and development. See IBO

Facts.com for more information.

IBOCS (IBO Communication System)

A nationwide voice messaging service that is available to IBOs, Members, Clients, and other customers.This service is sold exclusively by Quixtar IBOs.

IBO Number

Each Independent Business is assigned an IBO Number to identify the business. The IBO's individual IDNumber should also be included in all correspondence and when placing an order.

i-Commerce

A business model pioneered by Quixtar, I-commerce is the convergence of four key elements: the Internet,the Individual, the Infrastructure of Quixtar, and the Independent Business Ownership Plan.

ID Number

A unique number assigned by the Corporation for each individual IBO, Member, and Client. Members andClients should include their ID Number in all correspondence and when placing an order; IBOs shouldinclude both their IBO Number and ID Number.

IBO Registration Form

A legal contract establishing the contractual relationship between the IBO and Quixtar, and binding the IBOto follow the Rules of Conduct as set forth in the Business Reference Guide. A signature -- eitherhand-written or electronic (Click Wrap) -- is required to establish the business. If registering online, no formis necessary; the legal signature is obtained electronically via Click Wrap.

IBO Association International (IBOAI)

The governing body for the IBOAI. The Board's mission is to advise and consult with Quixtar on all aspectsof the business and to take an active role in shaping Quixtar's future. Leading the Board is an ExecutiveCommittee, which establishes goals and objectives for the four committees that focus on different facets ofthe business: Awards & Recognition, Business Operations, International, and Legal & Ethics.

IBO Association International Board (IBOAI Board)

The governing body for the IBOAI. The Board's mission is to advise and consult with Quixtar on all aspectsof the business and to take an active role in shaping Quixtar's future. Leading the Board is an ExecutiveCommittee, which establishes goals and objectives for the four committees that focus on different facets ofthe business: Awards & Recognition, Business Operations, International, and Legal & Ethics.

IBO Benefits Association (IBOBA)

An IBO is automatically eligible to participate in the IBOBA, a non-profit association that offers valuablebusiness liability and property protection at the favorable group rate of $5 annually. This amount is includedin the price of the IBO's Annual Business Fee. If the IBO does not wish to take advantage of this coverage,they may send a refund request to Quixtar.

Independent Business Ownership Plan (SA-4400)

Formerly, the business plan document that described the structure for an independent business supported byQuixtar. As of September, 2007, it has been replaced by the Business Opportunity Brochure.

International Sponsor

An IBO who sponsors a person living in another country.

International Sponsoring

Generally, all IBOs may internationally sponsor in other countries where Alticor is doing business. Nobonus is paid to the International Sponsor until an International Leadership Bonus is generated. Usually,once an IBO is domestically qualified at the Emerald level or above, volume from these international legsmay also be counted toward Emerald and Diamond bonuses and certain awards.

Invoice Summary

A report of an IBO's order activity for both personal and group business, presenting an entire businessmonth at a glance. The Summary includes: volume IBO, invoice number, type of order, ordering and ship toIMC, order date, bonus period, PV/BV, tax, delivery fee, total price and payment.

Leadership Bonus

A monthly bonus designed to reward IBOs for the effort of developing their downline into Silver Producersand above, and to provide additional incentive for them to continue doing so.

Leg (or Business Unit)

When an IBO registers someone and begins to help that person create a group, that group is referred to as a"leg" of the LOS in which it is formed. As IBOs develop their businesses, it is to their advantage to builddepth in as many legs as possible.

Legal Bulletins

A series of reports that explain Quixtar's position on various business and legal matters, such as sponsoringminors, transfers, forming partnerships, etc.

Line of Affiliation (LOA)

A network of support systems for IBOs. The upline in an LOA whose meetings, rallies, and counselingsessions an IBO attends, is not necessarily the IBO's sponsor.

Line of Sponsorship (LOS)

Refers to the IBO's direct heritage or "ancestry" in the business: Their sponsor, their sponsor's sponsor, andso on. A line of sponsorship is the linkage or lineage between all IBOs in a specific organization, somewhatlike a family tree. See Frontline, Group, Leg, Personal Group, and Upline.

Material Safety Data Sheet (MSDS)

Also called OSHA 20 Form. One of these sheets must accompany initial shipments of regulated commercialproducts sold to manufacturing and non-manufacturing companies. MSDS and additional information onaffected products can be obtained from the Business to Business Department by calling 800-992-6929 ext.5. See "Occupational Safety and Health Administration (OSHA)" and "FastFacts Fax On Demand."Documents are downloadable off the Quixtar® site.

MCI Rewards Program

Quixtar partners with MCI to offer IBOs competitive products to meet their business needs. IBOs can also

earn PV/BV through a variety of MCI calling plans.

Member

A registered customer who, for an annual fee, may purchase products and services at preferred pricing andreceive other member benefits, including Q-Credits® Points.

Member/Client Volume Cost

The published IBO Cost for all items on any orders sold to a Client or Member, or the actual price paid toPartner Stores by Clients or Members.

Member/Client Volume Requirement (MCVR)

To obtain the right to earn a Performance Bonus on downline volume during a given month, an IBO must:(a) make not less than one sale to each of 10 different retail customers (including Members or Clients); or(b) have at least 50 PV of sales to any number of retail customers; or (c) have $100 in purchases atMember/Client Volume Cost. When applicable, Partner Store Member/Client Volume Rule Cost is appliedin the month when the Corporation credits Partner Store Volume to an IBO's business.

MicroStrategy

An important IT business partner with Quixtar. For more information see DMReview; Quixtar Gains InsightWith MicroStrategy Business Intelligence Platform.

Monthly Depth Bonus Adjustment (MDA)

One of the factors used in calculating the Monthly Depth Bonus for each eligible IBO. The MDA isone-quarter of the published Leadership Bonus Adjustment.

Network Savings Plan Partners

Savings on services such as Avis® Car Rentals, Choice® Hotels, Days Inn®, Howard Johnson®, FedExKinko's® Copy Centers, Gateway®, Ramada®, and Travelodge®. Provided on the IBO/Member's ID cardupon registration. No PV/BV or Q-Credits® Points are awarded on these services.

New Platinum Seminar

After an IBO reaches the level of Platinum for the first time, they are invited to a two-day business meetingat Quixtar headquarters in Ada, Michigan, all expenses paid. The new Platinums typically fly into GrandRapids, Michigan on a Monday, attend the seminar on Tuesday and Wednesday, and fly home on Thursday.

New Silver Producer Report (SA-939)

Form used by some Platinums to report a new Silver Producer. A Platinum calls or submits the form toQuixtar to ensure proper PV/BV transfer and recognition for the new Silver Producer. Information onvolume generated by the new SP is required on the form.

Nutrilite®

A division of Access Business Group. Located in Buena Park, California, Nutrilite® manufactures dietarysupplements. One of the world’s leading brands of nutrition supplements.

Nutrilite Savings Stamp Program

See Double X® Savings Stamp Program.

Nutrition & Wellness

One of Quixtar's primary product categories. These products include food supplements, nutritiousbeverages, sports nutrition, and weight-control products.

Partner Stores & Services

Websites accessed through Quixtar.com where IBOs can earn PV/BV on their personal and customer'spurchases. More than 125 websites offer a wide range of products and services. More information aboutQuixtar Partner Stores is available at ThisBizNow.com and Quixtar.com Partner Stores & Services.

Pass-up Volume

PV/BV created by non-qualified IBO volume that continues to be passed up until combined volume reachesthe 25% Performance Bonus level.

Percentage Brackets

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Websites accessed through Quixtar.com where IBOs can earn PV/BV on their personal and customer'spurchases. More than 125 websites offer a wide range of products and services. More information aboutQuixtar Partner Stores is available at ThisBizNow.com and Quixtar.com Partner Stores & Services.

Performance Bonus

The Performance Bonus is calculated from two sets of numbers: Point Value (PV) and Business Volume(BV), which are assigned to each product or service.

* Differential: The Performance Bonus differential percentage you will receive from your personally sponsor * MCVR: Member Client Volume Requirement: In order to obtain the right to earn a Performance Bonus on downl

Personal Care

One of Quixtar's basic product categories. It includes colour cosmetics and skin care, oral, sun, and bodycare products.

Personal Group

All people registered under a particular business down to the first Silver Producer or Platinum.

See Downline, Frontline, Group, Leg, Line of Sponsorship (LOS), and Upline.

Personal Group Volume

Represents the personal PV/BV for you and your group (excludes downline volume at 25%). See AwardVolume.

Personal Identification Number (PIN)

A four-digit personal identification number assigned randomly by the Corporation's computer to all bankdraft-authorized IBOs. This is a confidential number known only to the IBO and is used to generate a bankdraft payment or to obtain PV/BV estimates through the Volume Information Service.

Personal Volume

The PV/BV credited to each IBO based on the following (which excludes all downline volume):

* PV/BV transfers and account adjustments. * Orders placed using Volume following the order for that IBO. * Orders placed directly

Peter Island Resort and Yacht Harbor

Privately owned island located in the British Virgin Islands. Diamonds and above are eligible, based onspecified criteria, to attend an all-expense-paid business conference at Peter Island. Portions of the islandare also available to the public.

Pin Level

As IBOs grow in the business, they progress to different award levels and receive various commemorativepins. Pin Level represents the highest award level an IBO has attained.

Platinum

You can qualify as a Platinum if you achieve any of the three criteria below for any 6 months within thefiscal year:

* Generate Award Volume of at least 7,500 PV in each of the 6 months. * Register or foster-register one North American group that qualifies at the 25% Performance Bonus level, a * Register or foster-register at least 2 North American groups, each of which qualifies at the 25% Performa

Note: For first-time Platinum qualification, at least 3 of the 6 months must be consecutive.

Premium Delivery

One of three delivery methods available for Quixtar orders. Your order ships next business day; deliverysecond business day. Some restrictions apply. See also Standard Delivery and Ground Express Delivery.

Price Code

A three-section code (P, B, and Y) next to every product number that shows the PV, BV, and IBO Cost ofthat product. Example: P100B200Y200. On products that also are available in carton lots, you'll find asecond price code with five sections (C, P, B, Y, and U). It shows the Carton quantity, the PV, BV, andIBO Cost for the carton, and the IBO Cost for each Unit in the carton. Example:C06P600B1200Y1170U195.

Price Disclaimer

All prices stated here are suggested prices only. IBOs are not obligated to charge these prices. Each IBO isentitled to determine independently the prices at which they sell products to other IBOs, or to Members,Clients, or other consumers. Prices are subject to change without notice. (The Canadian disclaimer differssomewhat from the preceding U.S. disclaimer.)

Product Pack

An optional product assortment available upon registration, generally ordered at time of registration.

Product Support Materials (PSM)

Materials created to support the sales of Quixtar products and services. These materials must bepre-approved by Quixtar prior to dispersion.

Prospect

An individual who is interested in becoming an IBO or Client.

PV/BV Inquiry

IBOs can view their current account and their downlines' ordering activities via Quixtar.com or by callingVolume Information Services (616-787-7500). Online inquiry gives a view of 14 months of invoice activitydata and personal PV/BV and ordering details. Online also allows IBOs to check on an invoice to see whatproducts were ordered.

PV/BV Ratio

The relationship or ratio of Points Value to Business Volume.

PV/BV Transfer

A method of moving PV/BV from one IBO to another. Transfer of volume assures bonus checks are paidcorrectly. A transfer may be done online or with the automated phone line.

Q-12

All Platinums and above may be eligible for the Q-12 Pin and Cash Award, a component of the SalesIncentive Program (SIP). This requires 12 consecutive months of qualification.

Quixtar News

Official news room of Quixtar, located at QuixtarNewsroom.com. The most recent and most accurateinformation about Quixtar the company and its products and services can be found here.

QuixNet.net

Quixtar's internet service provider. Available throughout the United States and Canada to IBOs and Clients.

Quixtar Growth Incentive (QGI)

A one-year program that provides additional incentives for qualified Diamond Bonus Recipients and abovewho qualify for a Diamond Growth Incentive award.

Quixtar Registration Literature Pack

A literature pack that Quixtar-affiliated IBOs purchase when starting a Quixtar business. There is also anoptional product pack.

Quixtar Trade Name, Trademarks & Copyrights

Quixtar is a registered trade name. Any use of the name requires pre-approval. For further information,refer to the Rules of Conduct of Quixtar-affiliated IBOs.

Quixtar Inc.

( An I-commerce business. The site's address is www.quixtar.com. Quixtar Inc. operates throughout the North

American Business Region, Canada, Dominican Republic, and Haiti.

Registration

The process by which an Independent Business Owner, Member, or Client enters the Quixtar business andis assigned an ID Number.

Renewal Form

Every IBO must file a Notice of Intent to Continue each calendar year. This is done automatically for anyIBO who signs up for Automatic Renewal. Otherwise, the IBO must renew online or sign and return aRenewal Form, along with payment of the renewal fee, before the end of the calendar year in order tocontinue in business the following year.

Residuals

Ongoing income an IBO can earn from certain services such as MCI WorldCom Clients' long-distance callsand Quixtar Visa.

Retail Markup

The difference between the amount you pay for products and their suggested retail price. Retail markup forHome, Health, and Self products in the Choices Catalog or from Quixtar.com averages about 32% of yourIBO Cost, but varies with each product. Neither you nor your sponsor is required to follow the suggestedretail markup or the suggested retail price, but you may do so if you wish.

RSA Security

An important IT business partner with Quixtar Inc. For more information see Quixtar Accelerates BusinessWith Identity and Access Management Solution From RSA Security.

Ruby

You can qualify as a Ruby if you generate Ruby Volume of at least 15,000 PV in a single month.

Rules of Conduct of Independent Business Owners

The Rules of Conduct define and establish certain principles to be followed in the development andmaintenance of an Independent Business Ownership and the rights, duties, and responsibilities of each IBO.The Rules are designed to preserve the benefits available to all IBOs and have a binding contractualrelationship.

SA8

A Quixtar exclusive brand, SA8® with BIOQUEST Concentrated Detergent is packed with powerfulbiological enzymes to remove tough stains like blood, grass, and chocolate. It contains biodegradablesurfactants (cleaning agents) that remove grease and oily soils, and break down into simple carbon dioxideand water. EXPLODING CRYSTALSTM Technology insures superior dissolving action, in all watertemperatures.

SA-4400

See Quixtar Independent Business Ownership Plan [PDF].

Sales

A team of Sales Advisors who work with the individual Lines of Affiliation.

Sapphire

You can qualify as a Sapphire if you either:

* Register or foster-register 2 North American groups, each of which qualifies at the 25% Performance Bonus or * Register or foster-register 3 North American groups, each of which qualifies at the 25% Performance Bonus

Self

One of Quixtar’s primary product categories. It includes cosmetics, skin care, oral care, and body careproducts.

Service Centers

Product warehouses operated in California, Georgia, Hawaii, Michigan, Puerto Rico, Texas, Washington;and Ontario, Canada.

Servicing Arrangements

A Platinum or above, for a fee, will supply product and provide access to training meetings for anotherIBO's downline. A servicing arrangement is useful when Sponsors and new IBOs are geographically distantfrom one another and supplying the new IBO with products and training is awkward and costly for theSponsor. Sales will help IBOs locate a servicing Platinum or higher pin. The IBOs make their ownagreements regarding fees, which are typically 10% of BV. All PV/BV purchased through the Servicing IBOmust be transferred back to the proper Line of Sponsorship every month.

Seventy Percent (70%) Rule

This rule reinforces the important philosophy that merchandising products is the foundation of the IBOPlan. It specifically relates to over purchase of stock for qualification means.

Silver Producer

You can qualify as a Silver Producer if you achieve any of the following for one month:

* Generate Award Volume of at least 7,500 PV. * Register or foster-register one North American Group qualified at the 25% Performance Bonus Level, and ge * Register or foster-register at least 2 North American groups qualified at the 25% Performance Bonus level

Internationally registered groups may not be used for Silver Producer qualification.

Six-Month Inactivity Rule

This rule describes the steps an IBO must follow to register under a new sponsor. This includes goingcompletely inactive for 6 months.

SKU

Stock Keeping Unit (stock number).

SL (Sponsor Leader)

SL (Sponsor Leader) is all Platinums (class 2 and 2A) IBOs by default. Sales may also assign this status toclass 4, 6, and 9 IBOs. Each TL (Team Leader) has one or more SLs.

Sponsor

The individual who registers an IBO, Member, or Client, and supports their Quixtar relationship.

Standard QBI Disclosure

Quixtar-powered Independent Business Owners can be recognized and compensated by Quixtar in a varietyof ways.

* IBOs also may qualify for Quixtar Business Incentives (QBI) -- a collection of discretionary programs sep

These standards require that:

* An IBO's conduct must not negatively affect the reputation of Quixtar, its related businesses, or IBOs af

Store For More

The various name brand and personal products available via the catalog and online store (Quixtar.com)from which IBOs, Members, and Clients can purchase non-coreline products, including well-knownname-brand clothing, tools, electronics, and much more.

Taxes and Writeoffs

See Quixtar Facts; Taxes, Tax Writeoffs, and Quixtar Independent Business Ownership for details abouttaxes and tax writeoffs for Quixtar IBOs.

TEKsystems

An important IT business partner with Quixtar Inc. For more information see TEKsystems Selected as TierOne Vendor for Quixtar Inc.

Tolsom

A Quixtar exclusive brand, TOLSOM high-performance skin care products for men are easy to use andclinically proven to reduce dryness and decrease roughness of the skin. And with the exclusive T-10Complex of eight moisturizing and two oil-controlling ingredients, TOLSOM is specially formulated formen. In just three easy steps – Wash, Shave, Protect – you’ll see visible results in minutes.

Tools

Term used by IBOs when referring to non-Quixtar produced business support materials (audiocassettes,videos, CDs, DVDs, literature, and flip charts) used for training (registering and merchandising) andmotivation. Materials used for sponsoring must be submitted to and authorized by Quixtar, BSMAdministration, prior to use by IBOs. Must have money-back guarantee.

Triple Diamond

You can qualify as a Triple Diamond if you either:

* Personally, internationally, or foster-register 15 groups (3 must be North American), each of which quali or * Attain Diamond qualification for 6 months of the fiscal year (6 of your groups must be North American), a

Upline

Upline are those IBOs in a Line of Sponsorship who were registered before a given IBO.

Volume IMC

Any IBO who places an order. IBOs can designate that the volume for the order to be credited tothemselves or another IBO.

What You Want Magazine

The monthly lifestyle and products magazine sent to active (ordered within the last five months) IBOs andMembers.

XS Sports Nutrition

It takes extra energy to help your body achieve peak performance. Quixtar XS Energy Energy SportsNutrition products are designed to hep push your performance to the limit. Quixtar performance-boostingsports nutrition lineup includes XS Energy Drinks, XS Energy Bars and XS Energy Shakes, along with a fullline of Sports Nutrition Supplements.

NUMERICS

1099-MISC

An annual information return that the Corporation must file with the Internal Revenue Service (IRS) foreach IBO who, during a calendar year:

* receives $600 or more in bonuses or other payments from the Corporation, and/or * to whom the Corporation makes "direct sales" of $5,000 or more of consumer products for resale. By law, t

1st Dibs Pack VA-0913

An optional monthly Standing Order, that provides Quixtar IBOs with an advance mailing of new productsand business materials scheduled for release the following month. Products sent earn associated PV/BV.

25% Sponsor

You can qualify as a 25% Sponsor if you register one qualifying North American Silver Producer orPlatinum.

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This page was last modified on 23 October 2008, at 18:11.

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