BRAND AFFILIATE—- Any person authorized to sell Nu Skin’s Products, pursuant to a Brand Affiliate Agreement (BAA). All Product purchases are optional.

BRAND AFFILIATE AGREEMENT (BAA)—-A contract required to become a Brand Affiliate. After Nu Skin accepts the Brand Affiliate Agreement, an individual is classified as a Brand Affiliate and is able to Register customers and resell Product.

BRAND REPRESENTATIVE (BR)—An individual who has completed Qualification, as well as a generic term used to refer to all Brand Representatives and above, regardless of Title. To maintain Brand Representative status, you must complete at least 4 Building Blocks each calendar month (or use Flex Blocks to substitute for missing Building Blocks). If you fail to maintain your Brand Representative status, any Brand Representatives on your Team will be moved to the Team of your direct Brand Representative. You have the option to Restart for a limited time, and, if successful, you may regain the Brand Representatives that were on your Team, along with any Flex Blocks previously accrued. Please see the Additional Details – Restart, or contact your account manager for more information.

BUILDING BLOCK—A measurement of Sales Volume. A Building Block is only considered complete when it has 500 points of Sales Volume. A Building Block with less than 500 points of Sales Volume is referred to as incomplete

BUILDING BONUS (BB)—-All Brand Representatives are eligible to receive a Building Bonus on completed Building Blocks. Brand Representatives who complete 4 or more Building Blocks in a month (excluding Flex Blocks) are also eligible to receive a Building Bonus on any incomplete Building Block at the end of the month. The percentage paid on an incomplete Building Block is equivalent to the percentage paid on the last completed Building Block of the month. Incomplete Building Blocks are paid on the 8th of the following month. Brand Affiliates and Qualifying Brand Representatives are not eligible for Building Bonuses. No Building Bonus is paid on Flex Blocks. Building Bonus is calculated on the CSV of each individual Building Block. The percentage associated with a Building Block is only applicable to that specific Building Block and does not apply to any previous completed Building Blocks

BUSINESS BUILDER POSITION (BBP)—- An incentive to motivate successful Brand Representatives to continue building their sales Team. A Business Builder Position is a second position that is awarded to a Brand Representative who has been paid as an Executive Brand Director for 1 month. The BBP is established on the 1st generation of the Executive Brand Director (parent account). By building a Team of Brand Representatives under the BBP, the parent account is eligible to receive 5% Leading Bonus on 6 Generations of Brand Representatives and the BBP is eligible to receive 5% Leading Bonus on 6 Generations of Brand Representatives. The owner of the BBP and parent account may receive up to 10% on the CSV of overlapping Generations between the parent account and BBP. For full information about Business Builder Positions, contact your account manager

COMMISSIONABLE SALES VALUE (CSV)—A currency value, associated with each Product, used to determine Building and Leading Bonuses. CSV for each Product may change from time to time. Contact your market or referring Brand Affiliate for Product-specific pricing, Sharing Bonus details, Commissionable Sales Value, and other sales compensation information.

FLEX BLOCK—A Building Block substitute that is automatically used to maintain your status as a Brand Representative if you do not complete 4 or more Building Blocks in a calendar month. In any month that you use a Flex Block, you will still be eligible for Building Bonuses on completed Building Blocks; however, you will not be eligible for any Leading Bonus. Flex Blocks do not provide Sales Volume, CSV, have no monetary value, and can’t ever be redeemed for cash—they are only used to help maintain Brand Representative status. A maximum of 3 Flex Blocks can be used each calendar month. There is no limit to the number of Flex Blocks that can be accumulated. Flex Blocks do not expire and are non-transferable. Any accumulated Flex Blocks will be forfeited if you fail to maintain your Brand Representative status. Check out Additional Details – Flex Blocks for more information.

GENERATION—A simple way to help you organize your Team. Every Brand Representative you directly lead is part of your 1st Generation (G1). Every Brand Representative your G1 Brand Representatives directly lead is part of your 2nd Generation (G2), and so forth.

GROUP—– Your Group consists of you and all your Retail Customers, Members, Brand Affiliates, and Qualifying Brand Representatives. Your Brand Representatives and their Groups are not included in your Group. All sales made by those in your Group contribute to your Building Blocks and your Group’s Commissionable Sales Value.

LEADERSHIP TEAM (LT)—See Lead – Be an Epic Leader for details.

LEADERSHIP TEAM SALES VOLUME (LTSV)—A G1 Brand Representative’s LTSV is the sum of all your G1–G6 Sales Volume from that G1 Brand Representative

LEADING BONUS—See Lead – Monthly Pay for more details.

MEMBER—A non-Brand Affiliate who is Registered by a Brand Affiliate and can purchase Nu Skin Products at the Member Price. A Member is not authorized to Register Brand Affiliates or resell Products. .

MEMBER PRICE—The purchase price of Products for both Members and Brand Affiliates. Member Price may occasionally be discounted below normal listings for promotions and incentives, as determined by the local market.

PRESIDENTIAL DIRECTOR BUSINESS BUILDER POSITION (PD BBP)—An incentive to motivate successful Brand Representatives to continue building their sales Team. A PD BBP is a third position that is awarded to a Brand Representative who has finished the first month of Qualification to be recognized as a Presidential Director. The PD BBP is established on the 1st Generation of the parent’s BBP account. By building a team of Brand Representatives under the BBP, the parent account is eligible to receive 5% Leading Bonus on 6 Generations of Brand Representatives, the BBP is eligible to receive 5% Leading Bonus on 6 Generations of Brand Representatives, and the PD BBP is also eligible to receive 5% Leading Bonus on 6 Generations of Brand Representatives. This means that the parent account may receive up to 15% and the BBP may receive up to 10% on the CSV of overlapping Generations between the parent, BBP, and PD BBP accounts. For full information, contact your account manager

PRODUCT—Includes all products and services sold by Nu Skin and its Brand Affiliates.

QUALIFICATION— The process Brand Affiliates undergo to become Brand Representatives. You begin Qualification by submitting a Letter of Intent and are reclassified as a Qualifying Brand Representative. After accumulating the requisite number of Building Blocks and Sharing Blocks within 6 calendar months, you finish Qualification and are reclassified as a Brand Representative. Please see Build – Qualification for more details.

QUALIFYING BRAND REPRESENTATIVE (QBR)—A Brand Affiliate who has submitted their Letter of Intent and begun, but not finished, Qualification. Please see Build – Qualification for more details

REGISTER—Refers to personally enrolling Retail Customers, Members, or Brand Affiliates with Nu Skin.

RETAIL BUILDING BONUS— Bonus paid on a United Statesor Canadian Registered Retail Customer’s purchase of certain Products to the first eligible Qualifying Brand Representative or Brand Representative (United States or Canadian accounts only) above that Registered Retail Customer at the time of the purchase. Retail Building Bonus will be calculated daily and paid on the same weekly schedule as the Building Bonus. To be eligible a Brand Affiliate must be a Qualifying Brand Representative or Brand Representative at the time the product sale takes place. Contact your market or Brand Affiliate for specific Product pricing, applicable Retail Building Bonus details, and other information.

RETAIL CUSTOMER—Anyone who is not a Brand Affiliate or Member who purchases Product either from a Brand Affiliate or directly from Nu Skin.

RETAIL PROFIT— The difference between your total costs (including the Member Price, cost of shipping, etc.) and the price you sell a Product for.

RETAILING BONUS (RB)—Is the difference between the price paid by your Retail Customers (excluding shipping costs and taxes) when they purchase Products directly from Nu Skin and the sum of the Member Price and any Retail Building Bonus. Contact your market or Brand Affiliate for specific Product pricing, applicable Retail Building Bonus details, and other information

SALES VOLUME—A point system Nu Skin uses to compare the relative value of Products across various currencies and markets. Each Product is assigned a specific amount of points of Sales Volume. Sharing Blocks, Building Blocks, and Leadership Team Sales Volume are all comprised of Sales Volume. Sales Volume is different from Commissionable Sales Value.

SHARING BLOCK (SB)—A subset of Building Blocks and consist of 500 points of Sales Volume that only come from purchases made by Retail Customers, Members, Brand Affiliates, and Qualifying Brand Representatives who you’ve Registered and Registered Retail Customers in the United States and Canada of your Registered Brand Affiliates and Qualifying Brand Representatives. Your personal purchases do not count towards Sharing Blocks. Sharing Blocks are only applicable to Qualification and are a subcategory of Building Blocks. Therefore, all Sharing Blocks are Building Blocks, but not all Building Blocks are Sharing Blocks. .

SHARING BONUS—Please see Share – Daily Pay for more details.

TEAM—Your Team consists of your Group and all Groups on which you are eligible to be paid a Leading Bonus.

TITLE—Refers to Members, Brand Affiliates, Qualifying Brand Representatives, and Brand Representative Titles. Brand Representative Titles are determined by the number of G1 Brand Representatives and Leadership Teams and are used to determine the number of Generations you can be paid a Leading Bonus on. Please see the Lead – Titles and Leading Bonus chart for each Title’s specific requirements.

VELOCITY ACCOUNT— A digital account that reflects all compensation activity, adjustments, and payments distributed by Nu Skin. You receive a Velocity Account when you become a Brand Affiliate. You can transfer your total available balance from your Velocity Account to any designated financial institution account at any time. However, fees may be associated with these transfers, depending on your market policies and/or the receiving financial institution. Nu Skin automatically transfers your remaining Velocity Account balance free of charge at the start of each weekly and monthly pay period. You are responsible for all fees associated with any transfer you initiate. There is a [$10 USD] minimum required for automated transfers. Transfers you initiate do not have a minimum balance requirement. Velocity Accounts do not accrue interest. You canview your Velocity Account through Nu Skin’s Brand Affiliate online portal.