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SECTION 7 – PAYMENT OF BONUSES AND OVERRIDES

7.1     Distributor Agreement.

Bonuses and overrides cannot be paid until a completed FFi Distributor Agreement has been received and accepted by FFi.  Bonuses are paid ONLY on the sales of FFi products. No bonuses are paid on the purchases of any sales material, sales aids or the recruitment of distributors.

7.2     Commission Checks.

The minimum amount of payment of commission checks is Ten Dollars ($10.00) or as otherwise mandated by any country in which FFi operates.  If the earned amount is less than that amount, it will be accumulated until such time that the amount exceeds Ten Dollars ($10.00).

7.3    Deductions.

A check processing fee of Two and 50/100 Dollars ($2.50) will be deducted from all commission checks.

7.4     Unclaimed Commissions and Credits.

There shall be a Fifteen Dollar ($15.00) charge for reissuing a check and a Ten Dollar ($10.00) fee for each notice that is sent to the distributor advising that the check had not been cashed.

7.5    Dormant Outstanding Commission Payments.

A monthly dormant commission fee of Twenty Dollars ($20.00) will be charged for the following:

1. All outstanding commissions checks that have not been negotiated within six (6) months of issuance;
2. Commissions in a distributor's wallet when there has been no activity in the wallet for a period of six (6) months;
3. Pending commission payments that are delayed for a period of six (6) months due to the action or inaction of a distributor.

The fee will be charged monthly on each outstanding weekly commission payment. The dormant commission fee cannot reduce the commission below $0.