Tocara Career and Compensation Plan V3 10/2014 Tocara Career and Compensation Plan The Tocara Compensation Plan is very flexible with no upper limit on the amount that can be earned. The Plan offers three ways to earn income: commissions on personal retail sales; bonuses on personal retail sales and on sales of people you sponsor; and team overrides. Each individual chooses the level of effort and income that he or she desires. Definitions The following terms are used in describing the compensation plan. Personal Commissionable Retail Sales (PS): Amount of personal commissionable retail sales submitted by a Consultant. Central Team Sales (CTS): The PS of everyone in a Leaders central team including the Leaders own personal sales but excluding the sales of any breakaway Leaders. Consultants Everyone joins Tocara as a Consultant (C). You must either purchase a Kit or earn a Kit at a Starter Show. Your account is “Activated” when you submit your first retail orders from a show. Consultants receive 25% commission on all Personal Commissionable Retail Sales (PS). Any Consultant who has sold $1,200 or more in the calendar month is Bonus Qualified. Personal Sales Bonus (PSB) is paid calendar monthly on PS. All Consultants will receive PSB1 at 5% when they sell $1,200 or more or PSB2 at 10% when they sell $2,400 or more in the calendar month. A new Consultant is automatically Active in their start month. In months 2 and 3 the new Consultant must submit at least one Show (or otherwise meet the regular Active criteria). An existing Consultant is Active (or Active in Program AIP) when they have total PS of $900 in the current month and prior 2 month period. Active Consultant’s are eligible to buy jewelry items for demonstration purposes or personal use at 50% off the retail price and automatically receive company communications and can participate in all company events. If a Consultant has not achieved PS of $900 over a rolling 3 month period, their status is changed to “Inactive”. Inactive Consultants still receive 25% commission on all PS. Activation Purchase a Kit or earn a Kit at a Starter Show and submit retail orders from a show Compensation Consultants earn the following compensation: • • • Page 2 25% commission on PS. Paid weekly. 5% PSB1 with monthly PS of $1,200 or more or 10% PSB2 with monthly PS of $2,400 or more. Paid monthly. 3% Personal Sponsoring Bonus (PRB) on the PS of personal recruits. Paid monthly. Tocara Career and Compensation Plan Senior Consultant Senior Consultant is the first step in the upward progression through the Tocara Field Sales Management structure. Qualification is achieved when a Consultant has PS $1,200 in a calendar month and has personally sponsored 2 Active Consultants. The promotion is effective in the month qualification is achieved. Qualification During the month of qualification the prospective Senior Consultant: • • Is an active Consultant with PS $1,200, has personally sponsored 2 Active Consultants and personal and personal recruit sales total $2,400. Has a Tocara account in good standing. Compensation Upon qualification the Senior Consultant is eligible to receive the following compensation: • • • 25% commission on PS. Paid weekly. 5% PSB1 with monthly PS of $1,200 or more or 10% PSB2 with monthly PS of $2,400 or more. Paid monthly. 3% Personal Sponsoring Bonus (PRB) on the PS of personal recruits. Paid monthly. Ongoing Expectations A Senior Consultant will be paid the above compensation provided, on a monthly basis, the following qualification requirements are met: • • Is an active Consultant with PS $1,200, has personally sponsored 2 Active Consultants and personal and personal recruit sales total $2,400. Has a Tocara account in good standing. Title Maintenance • Be paid as a Senior Consultant once in a rolling 4 month period. In the unlikely event that the Senior Consultant fails to meet Title Maintenance requirements, they will revert to Consultant status. Consultants that the Senior Consultant has sponsored will remain in their downline. Page 3 Tocara Career and Compensation Plan Senior Consultant Consultant Consultant __________________________________________________________________________________________ Silver Director Consultant Consultant Consultant Consultant __________________________________________________________________________________________ Pearl Director 1st Generation Directors __________________________________________________________________________________________ Page 4 Tocara Career and Compensation Plan Ruby Director 1st Generation Directors 2nd Generation Directors Silver Director Silver Director is the first leadership level in the Tocara Field Sales Management structure. Qualification: Qualification occurs when the following monthly requirements are met for 2 consecutive months. The promotion is effective during the second month of qualification. • • • • Is an active Consultant with PS $1,200 each calendar month. Has 4 Active (2 personally sponsored) Consultants. Have $4,000 CTS. Has a Tocara account in good standing. Compensation Upon qualification the Director is eligible to receive the following compensation: • • • • • 25% commission on PS. Paid weekly. 5% PSB1 with monthly PS of $1,200 or more or 10% PSB2 with monthly PS of $2,400 or more. Paid monthly. 5% Central Team Override (CTO) paid on the PS of everyone in the central team including the Director’s own PS. 3% Personal Sponsoring Bonus (PRB) on the PS of personal recruits. Paid monthly. On qualification, the Director will also earn a one-time Rank Advancement Bonus. Ongoing Expectations A Director will be paid the above compensation provided, on a monthly basis, Leadership Override Qualification (LOQ) requirements are met: • • • Page 5 Is an active Consultant with PS $1,200 each calendar month. Has 4 Active (2 personally sponsored) Consultants. Have $4,000 CTS. Tocara Career and Compensation Plan • Has a Tocara account in good standing. Title Maintenance • • • Be paid as a Director once in a rolling 6 month period. Each Director is allowed a 1 month grace period once per calendar year. The Leader has to apply for the grace month giving the company a minimum of 1 months notice in writing and must LOQ in the month prior to the requested grace month for the grace month to apply. In a grace month the leader is paid based on their title prior to the grace month. In a grace month a Director will be paid as a Director on actual sales results achieved. In the unlikely event that the Director fails to meet Title Maintenance requirements, they will revert to their Paid As status as determined by actual personal sales, team sales, and structure in the month prior to demotion. If the demotion is to Senior Consultant or Consultant, any Directors that have been promoted out will be inherited by the next up line leader and cannot be regained. Consultants that the Director has sponsored will remain in their downline. Pearl Director Qualification: Qualification occurs when the following monthly requirements are met for 2 consecutive months. The promotion is effective during the second month of qualification. • • • • • Is an active Consultant with PS $1,200 each calendar month. Has 4 Active (2 personally sponsored) Consultants. Have $4,000 CTS. Have Group sales (CTS plus 1st Generation Breakaway Leaders) of $10,000. Has a Tocara account in good standing. Compensation Upon qualification the Pearl Director is eligible to receive the following compensation: • • • • • • 25% commission on PS. Paid weekly. 5% PSB1 with monthly PS of $1,200 or more or 10% PSB2 with monthly PS of $2,400 or more. Paid monthly. 5% Central Team Override (CTO) paid on the PS of everyone in the central team including the Director’s own PS. 6% Leadership Override (LO) on all 1st generation Leaders Central Team sales. 3% Personal Sponsoring Bonus (PRB) on the PS of personal recruits. Paid monthly. On qualification, the Pearl Director will also earn a one-time Rank Advancement Bonus. Ongoing Expectations A Pearl Director will be paid the above compensation provided, on a monthly basis, Leadership Override Qualification (LOQ) requirements are met: • • Page 6 Is an active Consultant with PS $1,200 each calendar month. Has 4 Active (2 personally sponsored) Consultants. Tocara Career and Compensation Plan • • • Have $4,000 CTS. Have Group sales (CTS plus 1st Generation Breakaway Leaders) of $10,000 LOQ. Has a Tocara account in good standing. Title Maintenance • • • Be paid as a Pearl Director once in a rolling 6 month period. Each Pearl Director is allowed a 1 month grace period once per calendar year. The Leader has to apply for the grace month giving the company a minimum of 1 months notice in writing and must LOQ in the month prior to the requested grace month for the grace month to apply. In a grace month the leader is paid based on their title prior to the grace month. In a grace month a Pearl Director will be paid as a Pearl Director on actual sales results achieved. In the unlikely event that the Pearl Director fails to meet Title Maintenance requirements, they will revert to their Paid As status as determined by actual personal sales, team sales, and structure in the month prior to demotion. Ruby Director Qualification: Qualification occurs when the following monthly requirements are met for 2 consecutive months. The promotion is effective during the second month of qualification. • • • • • Is an active Consultant with PS $1,200 each calendar month. Has 4 Active (2 personally sponsored) Consultants. Have $4,000 CTS. Have Group sales (CTS plus 1st and 2nd Generation Breakaway Leaders) of $25,000. Has a Tocara account in good standing. Compensation Upon qualification the Ruby Director is eligible to receive the following compensation: • • • • • • • 25% commission on PS. Paid weekly. 5% PSB1 with monthly PS of $1,200 or more or 10% PSB2 with monthly PS of $2,400 or more. Paid monthly. 5% Central Team Override (CTO) paid on the PS of everyone in the central team including the Director’s own PS. 6% Leadership Override (LO) on all 1st generation Leaders Central Team sales. 4% Leadership Override (LO) on all 2nd generation Leaders Central Team sales. 3% Personal Sponsoring Bonus (PRB) on the PS of personal recruits. Paid monthly. On qualification, the Ruby Director will also earn a one-time Rank Advancement Bonus. Ongoing Expectations A Ruby Director will be paid the above compensation provided, on a monthly basis, Leadership Override Qualification (LOQ) requirements are met: • Page 7 Is an active Consultant with PS $1,200 each calendar month. Tocara Career and Compensation Plan • • • • Has 4 Active (2 personally sponsored) Consultants. Have $4,000 CTS. Have Group sales (CTS plus 1st and 2nd Generation Breakaway Leaders) of $25,000. Has a Tocara account in good standing. Title Maintenance • • • Be paid as a Ruby Director once in a rolling 9 month period. Each Ruby Director is allowed a 1 month grace period once per calendar year. The Leader has to apply for the grace month giving the company a minimum of 1 months notice in writing and must LOQ in the month prior to the requested grace month for the grace month to apply. In a grace month the leader is paid based on their title prior to the grace month. In a grace month a Ruby Director will be paid as a Ruby Director on actual sales results achieved. In the unlikely event that the Ruby Director fails to meet Title Maintenance requirements, they will revert to their Paid As status as determined by actual personal sales, team sales, and structure in the month prior to demotion. Emerald Director Qualification: Qualification occurs when the following monthly requirements are met for 2 consecutive months. The promotion is effective during the second month of qualification. • • • • • Is an active Consultant with PS $1,200 each calendar month. Has 4 Active (2 personally sponsored) Consultants. Have $4,000 CTS. Have Group sales (CTS plus 1st, 2nd and 3rd Generation Breakaway Leaders) of $50,000. Has a Tocara account in good standing. Compensation Upon qualification the Emerald Director is eligible to receive the following compensation: • • • • • • • • 25% commission on PS. Paid weekly. 5% PSB1 with monthly PS of $1,200 or more or 10% PSB2 with monthly PS of $2,400 or more. Paid monthly. 5% Central Team Override (CTO) paid on the PS of everyone in the central team including the Director’s own PS 6% Leadership Override (LO) on all 1st generation Leaders Central Team sales. 4% Leadership Override (LO) on all 2nd generation Leaders Central Team sales. 3% Leadership Override (LO) on all 3rd generation Leaders Central Team sales. 3% Personal Sponsoring Bonus (PRB) on the PS of personal recruits. Paid monthly. On qualification, the Emerald Director will also earn a one-time Rank Advancement Bonus. Ongoing Expectations An Emerald Director will be paid the above compensation provided, on a monthly basis, Leadership Override Qualification (LOQ) requirements are met: Page 8 Tocara Career and Compensation Plan • • • • • Is an active Consultant with PS $1,200 each calendar month. Has 4 Active (2 personally sponsored) Consultants. Have $4,000 CTS. Have Group sales (CTS plus 1st, 2nd and 3rd Generation Breakaway Leaders) of $50,000. Has a Tocara account in good standing. Title Maintenance • • • Be paid as an Emerald Director once in a rolling 9 month period. Each Emerald Director is allowed a 1 month grace period once per calendar year. The Leader has to apply for the grace month giving the company a minimum of 1 months notice in writing and must LOQ in the month prior to the requested grace month for the grace month to apply. In a grace month the leader is paid based on their title prior to the grace month. In a grace month an Emerald Director will be paid as an Emerald Director on actual sales results achieved. In the unlikely event that the Emerald Director fails to meet Title Maintenance requirements, they will revert to their Paid As status as determined by actual personal sales, team sales, and structure in the month prior to demotion. Emerald Director 1st Generation Directors 2nd Generation Directors 3rd Generation Directors __________________________________________________________________________________________ Page 9 Tocara Career and Compensation Plan Diamond Director 1st Generation Directors 2nd Generation Directors 3rd Generation Directors 4th Generation Directors __________________________________________________________________________________________ Vice President 1st Generation Directors 2nd Generation Directors 3rd Generation Directors 4th Generation Directors 5th Generation Directors Diamond Director Qualification: Qualification occurs when the following monthly requirements are met for 2 consecutive months. The promotion is effective during the second month of qualification. • Is an active Consultant with PS $1,200 each calendar month. • Has 4 Active (2 personally sponsored) Consultants. • Have $4,000 CTS. • Have Group sales (CTS plus 1st, 2nd, 3rd and 4th Generation Breakaway Leaders) of $75,000. • Has a Tocara account in good standing. Page 10 Tocara Career and Compensation Plan Compensation Upon qualification the Diamond Director is eligible to receive the following compensation: • 25% commission on PS. Paid weekly. • 5% PSB1 with monthly PS of $1,200 or more or 10% PSB2 with monthly PS of $2,400 or more. Paid monthly. • 5% Central Team Override (CTO) paid on the PS of everyone in the central team including the Director’s own PS • 6% Leadership Override (LO) on all 1st generation Leaders Central Team sales. • 4% Leadership Override (LO) on all 2nd generation Leaders Central Team sales. • 3% Leadership Override (LO) on all 3rd generation Leaders Central Team sales. • 2% Leadership Override (LO) on all 4th generation Leaders Central Team sales. • 3% Personal Sponsoring Bonus (PRB) on the PS of personal recruits. Paid monthly. • On qualification, the Diamond Director will also earn a one-time Rank Advancement Bonus. Ongoing Expectations A Diamond Director will be paid the above compensation provided, on a monthly basis, Leadership Override Qualification (LOQ) requirements are met: • Is an active Consultant with PS $1,200 each calendar month. • Has 4 Active (2 personally sponsored) Consultants. • Have $4,000 CTS. • Have Group sales (CTS plus 1st, 2nd, 3rd and 4th Generation Breakaway Leaders) of $75,000. • Has a Tocara account in good standing. Title Maintenance • • • Be paid as a Diamond Director once in a rolling 12 month period. Each Diamond Director is allowed a 1 month grace period once per calendar year. The Leader has to apply for the grace month giving the company a minimum of 1 months notice in writing and must LOQ in the month prior to the requested grace month for the grace month to apply. In a grace month the leader is paid based on their title prior to the grace month. In a grace month a Diamond Director will be paid as a Diamond Director on actual sales results achieved. In the unlikely event that the Diamond Director fails to meet Title Maintenance requirements, they will revert to their Paid As status as determined by actual personal sales, team sales, and structure in the month prior to demotion. Vice President Qualification: Qualification occurs when the following monthly requirements are met for 2 consecutive months. The promotion is effective the first day of the month following qualification. • Is an active Consultant with PS $1,200 each calendar month and has 4 Active (2 personally sponsored) Consultants. • Have $4,000 CTS. • Has Group sales (CTS plus 1st, 2nd, 3rd, 4th and 5th Generation Breakaway Leaders) of $125,000. Page 11 Tocara Career and Compensation Plan • Has a Tocara account in good standing. Compensation Upon qualification the Vice President is eligible to receive the following compensation: • 25% commission on PS. Paid weekly. • 5% PSB1 with monthly PS of $1,200 or more or 10% PSB2 with monthly PS of $2,400 or more. Paid monthly. • 5% Central Team Override (CTO) paid on the PS of everyone in the central team including the Director’s own PS. • 6% Leadership Override (LO) on all 1st generation Leaders Central Team sales. • 4% Leadership Override (LO) on all 2nd generation Leaders Central Team sales. • 3% Leadership Override (LO) on all 3rd generation Leaders Central Team sales. • 2% Leadership Override (LO) on all 4th generation Leaders Central Team sales. • 1% Leadership Override (LO) on all 5th generation Leaders Central Team sales. • 3% Personal Sponsoring Bonus (PRB) on the PS of personal recruits. Paid monthly. • On qualification, the Vice President will also earn a one-time Rank Advancement Bonus. Ongoing Expectations A Vice President will be paid the above compensation provided, on a monthly basis, Leadership Override Qualification (LOQ) requirements are met: • Is an active Consultant with PS $1,200 each calendar month with 4 Active (2 personally sponsored) Consultants and $4,000 CTS. • Have Group sales (CTS plus 1st, 2nd, 3rd, 4th and 5th Generation Breakaway Leaders) of $125,000. • Has a Tocara account in good standing. Title Maintenance • • Be paid as a Vice President once in a rolling 12 month period. Each Vice President is allowed a 1 month grace period once per calendar year. The Leader has to apply for the grace month giving the company a minimum of 1 months notice in writing and must LOQ in the month prior to the requested grace month for the grace month to apply. In a grace month the leader is paid based on their title prior to the grace month. In a grace month a Vice President will be paid as a Vice President on actual sales results achieved. • In the unlikely event that the Vice President fails to meet Title Maintenance requirements, they will revert to their Paid As status as determined by actual personal sales, team sales, and structure in the month prior to demotion. Page 12 Tocara Career and Compensation Plan Rank Advancement Bonuses The Rank Advancement Bonus program rewards growth and business success. Each time you advance in rank you are rewarded with a Rank Advancement bonus. Each new or existing leader you help to grow and develop earns you a Leader Development bonus. The bonus will be paid in the month following promotion when the Leadership Override Qualifications and paid-as criteria have been met. Rank Advancement Bonuses Promoted to Title Reward Senior Consultant $500 Retail Value Sample Pack Silver Director $500 Cash Award $1,000 Retail Value Sample Pack Pearl Director $1,000 Cash Award $1,000 Retail Value Sample Pack Ruby Director $1,500 Cash Award $1,000 Retail Value Sample Pack Emerald Director $2,500 Cash Award $1,000 Retail Value Sample Pack Diamond Director $5,000 Cash Award $1,000 Retail Value Sample Pack Vice President $10,000 Cash Award Leader Development Bonuses Every time a Consultant in your Central Team promotes to Director you earn a Leader Development bonuses. You also earn Leader Development bonus when a Consultant in a down line 1st Generation Central Team promotes to Director. You also earn Leader Development bonuses for rank advancements that occur in your 1st and 2nd generation down lines. • Promote out a 1st generation Director, earn $500 bonus • Promote out a 2nd generation Director earn $250 bonus • Each leadership rank change in 1st generation down line, earn a $500 bonus • Each leadership rank change in 2nd generation down line, earn a $250 bonus Payment of leader Development Bonuses is contingent on both the upline and downline leader being Leader Override Qualified (a leader who is an active Consultant with PS $1,200 in the calendar month and with 4 Active (2 personally sponsored) Consultants and $4,000 CTS) and paid as the same rank as in the promotion month, in the month following the promotion or rank advancement. The bonus will be paid in the month following down line promotion when the Leadership Override Qualifications and paid-as criteria have been met. Page 13 Tocara Career and Compensation Plan Roles and Responsibilities Consultants When you join the Tocara team as a Consultant your objectives should be: • To share the Tocara mission of helping women discover their identity by giving them the power to choose their destiny. • To offer Tocara products, the hostess opportunity and the business opportunity to every person with whom you come in contact. Your responsibilities are: • • • • • • • Prospect for clients on a frequent basis. Service existing customers by regular follow-up and by providing them with updated information and products. Attend company sponsored training events and meetings. Offer the Tocara opportunity to everyone. Never prejudge a potential recruit’s ability to be successful or their desire to join. Encourage sponsored Consultants to also sponsor others. Support your up line Director by participating in business building events. Abide by the policies and guidelines set forth by Tocara. Represent Tocara in an ethical and professional manner. Sponsors and Leaders When you sponsor new Consultants your objectives should be: • To develop those Consultants in your team who are also interested in leadership. • To Sponsor new Consultants and build a strong Central Team. • To function as part of the Tocara field management team. Your responsibilities are: • • • • • • Ensure that new recruits get off to a strong start by achieving all the Quick Start goals. Be available and guide them through each step of the process. Make sponsoring a priority in your daily activities. Help each Consultant in your team as well as promoted leaders set goals and action plans. Nurture, support and motivate them through frequent contact and encouragement. Act as a role model for your team. Recognize all your downline leaders and Consultants for their accomplishments and for the achievement of their goals. Identify potential leadership candidates and work with them to achieve Director level. Page 14 Tocara Career and Compensation Plan Questions and Answers on Compensation Plan Consultants and Senior Consultants Q How are commissions calculated and when are they paid? A Commissions are paid weekly on the PS received by the company. Q. I have personally sponsored 2 Consultant’s who are active and in March personally sold $2,760. I was promoted to Senior Consultant March 21st. . My PS totaled $2,760 in March. My personal recruits had PS of $4,320 in March. How much did I earn? A. You are qualified to earn Personal Sponsoring Bonuses and Personal Sales Bonuses. In March you earned $690 commission ($2,760 X 25%), a Personal Sales Bonus of $276 ($2,760 X 10%) and PRB of $108 ($4,320 X2.5%). Total earnings for the month were $1,074 exclusive of Quick Start program awards! Q. On how many levels are PRB’s paid? A. PRB’s are paid on all Consultants personally sponsored by the Senior Consultant. If otherwise eligible they will receive 2.5% PRB on active Consultants PS each month. Q. What happens if you sponsor someone out of your geographic area? A. A qualified Senior Consultant will earn PRB on PS of all Consultants personally sponsored, regardless of geographic location. You are expected to provide ongoing support to your new Consultant using phone, fax, email or personal visits. Q. What happens to Consultant leads generated at fairs or other business development events? Do they qualify for Sponsorship? A. Yes. The sponsor of record for the new Consultant (in the Tocara system) is eligible for any bonuses, overrides or other incentives as detailed in the compensation plan or other company literature. Q. A Consultant successfully sponsors a number of new Consultants. The Sponsoring Consultant then becomes inactive. After one year of inactivity she is removed from the Tocara Consultant list. If she rejoins Tocara is she eligible to earn bonuses on her original sponsored Consultants? A. A Consultant that becomes inactive (PS less than $900 over a rolling 3 month period) does not lose any sponsored Consultants. Once a Consultant resigns or is removed from the Tocara Consultant list she loses all sponsorship benefits for any Consultants she sponsored prior to being removed. Any sponsored Consultants are automatically transferred to the next up line Consultant. The Consultant must take part in no Tocara activities for more than 1 year and submit a new Consultant Agreement to rejoin Tocara. If after rejoining Tocara she sponsors new Consultants, she is eligible to earn bonuses on these new recruits. Directors Q. How much time does a Consultant have to meet Title Qualification requirements and get promoted to Silver Director? A. A Consultant needs to meet the following requirements for 2 consecutive months to be promoted: PS $1,200 each calendar month, has 4 Active (2 personally sponsored) Consultants and has $4,000 CTS. There is no time limit to sponsoring the 4 Consultants. Page 15 Tocara Career and Compensation Plan Q. What rules are used to determine if a new consultant can be counted for team structure and Leader Override Qualification (LOQ)? A. A new Consultant who has purchased a kit or earned a kit through the Starter Show program is automatically considered active and counts for team structure in that first, start month. To be counted for LOQ in month 2 and 3 the new Consultant must submit at least one Show (or otherwise meet the regular Active criteria). Q. How quickly can someone be promoted to Director? A. A Consultant who meets the Title Qualification requirements for Director in her first month and second months (PS $1,200 each calendar month, has 4 Active (2 personally sponsored) Consultants and has $4,000 CTS) will be eligible to be promoted during her second month. For example “Mary” meets requirements in April and May; she is promoted in May and will be paid as a Silver Director on May sales. Q. What happens to a Director who is below LOQ requirements in a month? A. Directors who are below LOQ requirements are not eligible to be paid Central Team Overrides. They will be paid on actual results achieved. Q. Is a Director required to have PS $1,200 in the month to qualify for Central Team Overrides? A. Yes. The Director must also have 4 Active (2personally sponsored) Consultants and CTS of $4,000. Q. Are the Rank Advancement Bonuses linked to or affected by any other company programs? A. No. The RAB is in addition to any other company programs. Q. If a Director reverts to Consultant status, can she later earn a Rank Advancement bonus? A. No. Anyone who has earned a Director RAB is not eligible for a second Director promotion bonus, unless she first resigns from her Tocara business, takes part in no Tocara activities for more than 1 year, signs a new Consultant Agreement and builds a new Director team. Q. What happens to the Consultants if a Director reverts to Consultant status? A. Any Directors that have been promoted (or are subsequently promoted) are inherited by the next up line Director and can never be regained by the ex-Director. All other Consultants become part of the up line Director’s central team. The ex-Director can continue to earn PRB on Consultants they have personally sponsored if they are qualified Senior Consultants. If the ex-Director at a future point re-qualifies for Director, these Consultants will rejoin her central team. Q. When I promote-out a new Director, what do I have to do to maintain my leader status and LOQ status? A. During the month when the new Director is promoted, the upline leader central team, for structure/payment purposes includes the new Director and their downline Consultants. In the month following the promotion, the Leader who promotes out a Director is entitled to a “grace period” of reduced qualifications in which to rebuild their Central Team. A one month Grace Period follows the promotion of a Director from the up line Director’s Central Team. In the Grace Period the up line Director need only meet the minimum stipulated requirements of a Senior Consultant to be LOQ. Q. What happens if I sponsor a Consultant who then promotes to Director? Page 16 Tocara Career and Compensation Plan A. “Terry” was sponsored by “Irene”. “Terry” qualifies for Silver Director and is promoted on June 1st. “Irene” has 3 months (until September 1st) to promote to Director. If “Irene” does not promote to Director by September 1st “Terry” can never be a part of “Irene’s” downline. “Terry” will be a first generation Director to the existing up line Director. Q. What happens if one of my downline Leaders fails to LOQ for a period of time and is demoted to Senior Consultant or Consultant? A. When an up line LOQ leader has a downline Leader that is demoted the roll-up rule is applied. Example: You are a LOQ Leader. Mary is your promote-out 1st generation Leader and is demoted. Sally is a LOQ 2nd generation Leader that promoted out of Mary’s team. With the roll up rule, Mary and her team are absorbed back into your Central Team. Sally now becomes a 1st generation Leader to you and you earn 6% LO on her CTS. Q. Does the Tocara Compensation Plan use “compression”? A. No. When monthly bonuses and overrides are calculated, Tocara uses Paid As rules applied to the Title Qualified structure. For example: You are a qualified VP. Mary is your first generation promote-out VP. Sally is a promote-out Silver Director from Mary’s team. In June you are LOQ. Mary does not LOQ qualify. Sally does LOQ qualify. As a qualified VP you are entitled to receive a 1st generation LO of 6% on the Central Team PS of your qualified 1st generation Leaders. You will earn LO1 overrides on Mary and her team and LO2 overrides on Sally and her team. Q. What training is available for Directors? A. We have created a Leadership Training Program for all new Directors. In addition we have an Advanced Leadership Training Program for Diamond Directors and Vice Presidents which will be conducted at home office. The corporate head of sales will also conduct individual training sessions with each field leader. Page 17 Tocara Career and Compensation Plan Glossary Consultant C Consultant Agreement Generic term for everyone within the Tocara genealogy. A Consultant is an independent contractor (18 years or older) who has completed a Tocara Consultant Agreement that has been accepted by Tocara. The Tocara Consultant Agreement form that, upon acceptance by the Company, is a legally binding part of the contract between the Consultant and Tocara. This document contains important information that a prospective Consultant should read and understand before submitting it to the Company Active or Active in Program: Active AIP A Consultant is Active (or AIP) when they have PS of $900 in a rolling 3 month period (current plus previous 2 months). A Consultant who is Active will be counted for team structure in the career plan Bonus Qualified BQ Any Consultant who has PS of $1,200 or more in the calendar month. Leader Override Qualified LOQ Any leader who is an active Consultant with PS $1,200 each calendar month with 4 Active (2 personally sponsored) Consultants and $4,000 CTS Direct Refers to anyone in your central team, whether personally sponsored or not. It also refers to your first generation of Directors or above Leg An individual line of sponsorship Breakaway Any Consultant who meets the criteria to become a Director, and breaks out of their sponsors Central Team Down line Everyone a Consultant sponsors and the people they sponsor all the way to the bottom of their business Up line Your sponsor, and their sponsor all the way up to the Company Sponsor The Consultant who recruited you into Tocara is identified as such on the Consultant Agreement Width The number of legs containing a minimum of one Director Inactive An Inactive Consultant is any Consultant who in a rolling 3 month period has PS of less than $900. Page 18 Tocara Career and Compensation Plan Personal Sponsoring Bonus PRB Active Width Paid monthly to PRB Qualified Senior Consultants on the PS of personally sponsored Consultants The number of separate legs containing at least one Qualified Director Generation GEN Each separate level of downline Director Rank and above Central Team CT Everyone who the Leader sponsors and the people they sponsor all the way to the bottom of the business but not including another Leader and their Central Team Personal PS Commissionable Retail Sales Personal Commissionable Retail Sales is the amount of commissionable retail sales used for qualification purposes. Each sales has a value equal to the $ amount of the sale excluding taxes. Central Team Sales CTS The PS of everyone in your central team including your own PS. Excludes the PS and CTS of any breakaway Leader Commission COMM All Consultants will receive commission paid weekly on PS Personal Sales Bonuses PSB1 PSB2 Paid calendar monthly on personal commissionable sales. All Consultants will receive PSB1 at 5% when PS is $1,200 or more or PSB2 at10% when PS is $2,400 or more in the calendar month Central Team Override CTO Paid monthly to qualified Directors and above Leadership Override LO1 – LO5 Paid monthly to Qualified Directors and above based on their Leadership Override Qualified Leader structure in the calendar month Rank Advancement Bonus RAB A one off bonus paid to Directors and above the first time they achieve their new title, providing they are Leader Override qualified in the month following their promotion Paid As Directors and above will be ‘Paid As’ based on their actual personal sales, team sales, and structure in the calendar month. Letter of Intent The letter (or email) completed by a Consultant and sent to the company identifying the intent to qualify for a Director position. The letter should be submitted prior to the month of qualification. Removal A Consultant who is removed from the Tocara system cannot be reinstated. A Consultant who rejoins Tocara must complete a new Consultant Agreement (including new sponsor if relevant) and purchase or earn a Kit and submit retail orders for a show to Activate the new account Page 19
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