Official Policy: Team Elite Qualifications

Dear Qualifying Team Elite,

In an continued effort to recognize you for all of your hard work and dedication, as well as strengthen the position of Nu Skin’s pinnacle of achievement, Team Elite, we launched an alternative qualification option for Team Elite in 2008 based upon the Leadership Points concept. This qualification track has been very successful and we will continue to offer it in 2009 for the 2010 Team Elite trip to Maui, Hawaii! Please see the official policy for Team Elite qualification below and feel free to contact your Account Manager if you have any questions.

Qualification Options

• Classic Track: Must have 15 first generation breakaways for any six months in the same calendar year. Must be “paid as” and “recognized as” a Blue Diamond for the three months prior to the Team Elite Trip.*
• Leadership Point Track: Must achieve and maintain Blue Diamond status with 12 first generation breakaways and generate a minimum of 36 Leadership Points for any six months in the same calendar year. Must be “paid as” and “recognized as” a Blue Diamond for the three months prior to the Team Elite Trip.*
• * Being paid as/recognized as a Blue Diamond three months prior to the trip means that we will always look at the three commission periods where the commission run process has been completed. For example, the Maui Team Elite Trip is in March 2010, therefore the qualification period for paid as BD will be Nov, Dec and Jan. We will always announce this period once the trip dates have been set.

Other Things to know

Use one or the other of the qualification tracks as outlined above. (Can not combine tracks)

For first-time qualifying Team Elites, qualifications may begin during the first “paid as” BD months provided the dist has either 15 G1 breaks or 12 G1 Breaks and 36 leadership Points.

Re-qualifying Team Elite must meet the requirements within the 12 month calendar year.

All REXEC/PEXECs may count as a G1 Breakaway provided they have one or more first generation breakaways of their own. REXECS/PEXECS without any first generation breakaways may not be counted.

New Team Elite

May begin qualification at any time during the year.

Must complete qualification in any given 12 month period.

In order to attend the upcoming trip- must qualify two commission periods prior to the trip. (For the Maui Team Elite trip all new qualifying Team Elite have through January 2010 to qualify. Therefore they must begin qualifications no later than August 2009.) The last month to qualify will always be announced once the trip dates have been set. Distributors may not choose which trip they want to attend. They must attend the trip they qualify for.

Since a first time qualifying Team Elite can carry qualification between two calendar years, he/she is not allowed to use the same qualification months for two different Team Elite Trips. For example. If a first time qualifying Team Elite uses Aug 2009-Jan 2010 to achieve qualification for the 2010 Team Elite Trip. He/She may not also use January 2010 for qualification towards the 2011 Team Elite Trip.

Leadership Points Roll-up Policy

Updated for 2009

Dear Distributor Leaders

As Leadership Points begin to take on a more prominent and important role in company incentives and Team Elite qualifications we want to ensure that all distributors are able to take full advantage of the growth they are helping to create in their organizations. In 2008 Roll-up Executives were not allowed to count towards Leadership Points. However, as of January 1, 2009 the Leadership Points from a roll-up Executive will begin counting once the roll-up Executive has advanced to a new and higher pin title. Please note the following rules for counting Leadership Points from a roll-up Executive:

Mechanics

• Roll-ups will not count until they advance to a higher pin title.
• Only the leadership point difference between titles will count to the upline executive. (see example 1)
• If a roll-up advances a pin title and then falls back to that title, or lower title, they had at time of roll-up then leadership points will cease to count. (see example 2)
• 2008 Roll-ups will count as Leadership Points beginning in January 2009 for any growth that may have occurred during 2008 from the title held at the time the roll-up occurred. (See example 3)

How Leadership Points CountHow Leadership Points Count

G1 Exec	0 LPs
G1 Gold 1 LP	1 LP
G1 Lapis 2 LPs	2 LPs
G1 Ruby 4 LPs	4 LPs
G1 Emerald 6 LPs	6 LPs
G1 Diamond 8 LPs	8 LPs
G1 BD or TE 12 LPs	12 LPs

Example 1

A Lapis Exec rolls-up in March 2009 (0 LPs to the upline). They become a Ruby in May (2 LPs to the upline). Lapis= 2 LP and Ruby=4 LP. The difference is 2 LP growth.

Example 2

A Lapis Exec rolls-up in March 2009 (0 LPs to the upline). They become a Ruby in May (2 LPs to the upline). They then fall back to Lapis in July (0 LPs to the upline). Thus, March and April= 0 LP, May and June= 2 LP and July= 0 LP.

Example 3

A Lapis Rolls-up in August 2008 and becomes a Ruby in November 2008. As of January 2009 the upline will begin to count 2 LP. (The difference between their title at time of roll-up and January 2009). If the roll-up falls back to Lapis or lower title anytime during 2009, Leadership Points will cease counting to upline. (see example 2)