US Policies & Procedures Section Section 13 – Definitions

DEFINITION OF TERMS

Active Associate—An Associate who satisfies the minimum Personal Sales Volume requirements as set forth in the USANA Binary Compensation Plan.

Associate—An individual who has executed an Associate Application and Agreement that has been accepted by USANA. Associates are required to meet certain qualifications and are responsible for the training, motivation, support, and development of the Associates in their respective teams. Associates are entitled to purchase USANA products and retail USANA products and services, enroll Preferred Customers and new Associates, and take part in all Company Associate programs.

Business Center—The term “Business Center” is defined in the USANA Binary Compensation Plan.

Cancellation—Termination of an individual’s Associate Agreement or Preferred Customer Agreement. Cancellation may be either voluntary or involuntary.

Involuntary Cancellation—The termination of an Associate Agreement that is initiated by USANA.

Voluntary Cancellation—The termination of an Associate or Preferred Customer Agreement instituted by the Associate or Preferred Customer who elects to discontinue his/her affiliation with USANA for any reason.

Commissionable Products—All USANA products on which commissions and bonuses are paid. Business Development Systems and sales aids are not commissionable products.

Company—The term “Company” as it is used throughout these Policies and Procedures, and in all USANA literature, means USANA Health Sciences, Inc. and USANA Canada, Co.

Associate Agreement—The term “Associate Agreement”, as used in the Policies and Procedures, refers to the Associate Application and Agreement, USANA’s Policies and Procedures, and the Binary Compensation Plan.

Business Development System (BDS)/Starter Kit—A selection of USANA training materials and business support literature that each new Associate purchases. The BDS is sold to Associates at USANA’s cost.

Side—The individuals enrolled under one side of a Business Center and their respective teams represent one “side” in your team.

End Consumer—A person who purchases USANA products for the purpose of personally consuming them.

Four-Week Rolling Period—The four pay periods (four Fridays) after an Associate places a product order of $100 or more. If an Associate places an order on a Friday, the Friday on which the order is placed counts as the first of the four pay periods in the Associate’s volume period.

Example: If an Associate places his/her order on Friday, September 13, 2013, the four-week rolling pay period expires three Fridays later (Friday, October 4, 2013). To remain active, an Associate must place his/her next product order no later than Friday, October 1, 2013.

Example: If an Associate places his/her order on Friday, September 6, 2013, the four-week rolling pay period expires three Fridays later (Friday, September 27, 2013). To remain active, an Associate must place his/her next product order no later than Friday, October 4, 2013. (See Four-Week Rolling Period Calendar for further clarification.)

The maintenance of an Associate’s active status during a volume period is critical to the Associate’s eligibility to earn bonuses and commissions.

Genealogy Report—A report generated by USANA that provides critical data relating to the identities of Associates and sales information of each Associate’s team. This report contains proprietary trade secret information. (See section 3.6.2).

Group Sales Volume—The commissionable volume of USANA products generated by an Associate’s team. Group Sales Volume does not include the Personal Sales Volume of the subject Associate. (BDS/Starter Kits and sales aids have no sales volume.)

Left-Side Group Sales Volume (GSV)—The commissionable volume of products sold in the left side of a particular Business Center.

Right-Side Group Sales Volume (GSV)—The commissionable volume of product sold in the right side of a particular Business Center.

Immediate Household—An Associate, his or her spouse, and dependent children.

Level—The layers of Associates in a particular Associate’s team. This term refers to the relationship of an Associate relative to a particular upline Associate, determined by the number of Associates between them who are related by sponsorship.

Team—An Associate’s team consists of all Preferred Customers and Associates below him/her.

Official USANA Material—Literature, audio CDs and DVDs, and other materials developed, printed, published, or distributed by USANA.

Personal Sales Volume (PSV)—The commissionable value of products purchased by an Associate.

Titled Associate—An Associate who has received commission and a title (i.e., Sharer or Believer, for group volume sales.

Auto Order—To track when your Auto Order will be processed, call Distributor Services for the number of your Auto Order week. If your week is #3, for example, find the #3 on the calendar of the current month. Your Auto Order will be processed on Monday of that week and every #3 week forward unless there is a cancellation. Credit cards are billed and bank drafts are deposited the first part of the week your Auto Order is scheduled.

To qualify for 3 Business Centers—You must generate 400 points in sales volume within six Fridays. Start counting from the Friday of the week your application was received.