Sales & Marketing Plan Modular Training

Royalty Point Balancing Factor

Effective February 2023 (earnings paid March 2023) a Royalty (R/O) Point Balancing Factor will be implemented globally (except for China). The temporary adjustment applied to Royalty Override Points will be determined based on relative market conditions and are designed to support and accelerate TAB Team qualifications and eligibility to earn Production Bonus.

• The Balancing Factor is available to all Supervisors and above that have R/O Points and can be used towards the RO Point requirement to qualify (or requalify) for marketing plan levels, such as WT, AWT, TAB Team, etc. • The Balancing Factor is applied after EOM when R/O runs and will be shown on Statements by Earn Country. • Royalty Points in US/PR are calculated solely on Documented Volume, which will then be increased by the Balancing Factor.

• The RO Point Balancing Factor is applied to Royalty Points only which is done to determine TAB Team Qualifications and eligibility to earn. • The Balancing Factor value may vary by market, based on specific conditions, and may periodically increase or decrease (a document with all values by market is available for internal use only).

• R/O Points are increased by the Balancing Factor applicable to the country or countries where the product was sold.

Example:

Prior to February 2023 Volume Month, John’s R/O Points for TAB team qualifications were as follows: 16,000 (A) x 5% (B) = 800 R/O Points

As of February 2023, John’s R/O Points will be increased by a Balancing Factor of 10% : 800 x 10% (C) = 80 R/O Points (Balancing Factor) Royalty Points for Qualification = 800 + 80 = 880

Royalty (RO) Point Balancing Factor At-a-Glance Royalty (RO) Point Balancing Factor Example Royalty (RO) Point Balancing Q&A