fireflies official compensation plan_en

FIREFLIES OPERATIONS AND COMPENSATION PLAN

http://fireflies.com

2 FIREFLIES OPERATIONS AND COMPENSATION PLAN

1. Travel packages

2. Other products

I. Products

Basic

Light website usage

Life

Entrance fee to distributors

Travel voucher (voucher)

*The transaction cost of payment by bank card is 5% at the moment.

*The transaction cost of payment by bank card is 5% at the moment.

1

Voucher(s)

Content of the product

Product content Product name

1

Site usage

Full website usage

485 USD

free(registration is needed for purchase)

Product prices*

Product price*

7 99

Participation in the Compensation system

1 travel voucher(voucher)

3389 USD

USD 52 / year

USD 419 / year

Smart

Full website usage (yearly)

Start Set

Discount travel voucher(From the fourth travel purchase)

3 4

Site usage, hotel reservation, even 18% discount at reservation

(compared to the usage of the light website)

Product containing advanced statistics, training videos, thematic communication channel assisting the distributor

activity

1 discount travel voucher(discount travel voucher)

1453 USD

USD 113 / year

USD 157 / year

USD 372 / year



3. Services connected to the products

Registration

Start Set

Travel voucher (discount travel voucher as well)

Smart package

Entrance fee for distributors

Website usage

Basic package

Basic package

Web

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Nor

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pric

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Flig

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pur

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Tick

et p

urch

ase

for p

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ams

Web

offi

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lus

func

tions

Even

18%

dis

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t

Hot

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serv

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n

Tran

sfer

rese

rvat

ion

Trav

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s

Trav

el v

ouch

er o

ffer

s

Hot

line

Services

No

Yes

No

No

Yes

No

No

No

No

No

No

4 years

No

1 year

1 year

99 years

No

No

No

Yes

No

No

Yes

Yes

No

No

No

Yes

No

Yes

Yes

Yes

No

Yes

No

No

No

No

No

No

No

No

No

Yes

No

No

Yes

Yes

No

No

No

Yes

No

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

Yes

Yes

No

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

The Start Set may be purchased for the period, when the user has an entrance fee. In case the purchase of the start set takes place later, than purchasing the entrance fee, then a proportionate fee shall be paid to the start set based on the days. The day of termination is the same for the start set and the entrance fee.



4. Right of cancellation

In case of purchasing the start set and the entrance fee the distributor may request the refund of 100% of the purchase price within 14 days, calculated from the date of purchase in writing (e-mail or post). Following 14 days but sooner than 6 month from the purchase the distributor is entitled to request the refund of 50% of the purchase price of the above products in writing (e-mail or post). The relevant address and e-mail address, furthermore the provisions for cancellations are determined in the General Business Terms and Conditions (I/2.,6.)



Each product type has different commission content, and the following chart contains the commission percentages belonging to each product:

The % base of the above commission is the net purchase price of the above sold products and services reduced by the bank card payment transaction costs.

The SWISS HALLEY AG during the existence of the period open for cancellation (14 days) puts the commission payable for the sale is into quarantine, i.e. the commission may not be paid out until the end of the 14th day calculated from the day of the purchase.

In case of purchase of website right, travel voucher, travel packages terminates following 14 days from the purchase, while in case of hotel reservation, it ends at midnight on the first day of the reservation.

II/1. Description of the uniform commission system, point system

II. Description of the compensation plan and the distributor travel account

Website usage

Discount travel voucher

Smart package

Travel

Purchase type Max commission % Point multiplier QuarantineProduct name

20 20/46 14 days from purchase

From the fourth purchase

With full rights


46

4,5

46/46

4,5/46

14 days from purchase

Until the first dayof travel.

Travel voucher

Basic package

Life package

Travel



46

11,5

46/46

11,5/46

14 days from purchase

Until the first dayof travel.With light rights



The calculation of the commission and qualification points takes place at all times based on the purchases outside the quarantine.

In case regarding the sale that forms the bases of the commission paid a cancellation takes place or a so-called charge back event occurs, then the SWISS HALLEY AG shall be entitled to withdraw the already paid commission on the distributor line affected in the concerned sale, therefore receiving commission. In case the distributors do not possess with an appropriate amount of unpaid commission, the SWISS HALLEY AG shall be entitled to debit its claim on the distributor travel account, or deduct that amount from the future commission of the concerned distributors.

1. Payments

2. Qualifying points

We calculate the points received after certain payments based on the commission algorithms contained in the compensation system. In case of payment 1 payment point = 1 USD.

Examples:

a. In case a partner directly linked under the distributor purchases a Basic travel package, then direct bonus shall be paid following this transaction, that is USD 461 (without the transaction costs of payment by bank card), furthermore 5% direct bonus, and due to the 1 point multiplier, the distributor receives 23,05 payment points, which is USD 23,05 on his bank account at payment.

b. When a directly linked partner – who does not possess full website usage – reserves a hotel room in USD 1050 value with his bank card, then direct bonus should be paid for the distributor following the concerned transaction, that is USD 1000 (without the transaction costs of payment by bank card), furthermore 5% direct bonus, and due to the 11,5/46 point multiplier, the distributor receives 12,5 payment points, which is USD 12,5 on his bank account at payment.

The distributors enter the career level appropriate for the total qualifying points based on the qualifying points calculated by them and their teams.

The qualifying points equal with the price of the product according to the compensation plan, multiplied with the qualifying multiplier for the concerned product. There are two types of qualifying points: gift qualifying point and qualifying point. The gift qualifying point shall be given to that distributor, who purchases a life travel package, they receive 1383 qualifying points as gift qualifying point.

The number of qualifying points of a distributor equals with the qualifying points calculated after the purchases of the products, the own purchases are not taken into consideration at the distributors. As an exemption, in case the distributor starts with a life travel package, in this case the gift qualifying points are taken into consideration when calculating the qualifying points of the group.

When purchasing the Life package, the distributor receives the normal qualifying point plus 3/7 of the normal qualifying point as extra qualifying point, that is also taken into consideration at his own qualifying points.



Based on the example mentioned in the above example:

a. In case a partner directly connected under the distributor purchases a Basic package, that is USD 461 (without the transaction costs of payment by bank card), and due to the 1 multiplier, the distributor receives 461 qualifying points.

b. When a directly linked partner under the distributor – who does not possess full website usage – reserves a hotel room in USD 1050 value with his bank card, then direct bonus should be paid for the distributor based on this transaction, that is USD 1000 (without card usage fee), and due to the 11,5/46 multiplier, the distributor receives 250 qualifying points

Direct bonus

Leader generation

Matching

Challenge pool

Depth bonus

Car

Matrix

Capital part

Altogether

5

3,3

2,99

0,61

18

3

11,6

1,5

46

5*33/46

3,3*33/46

2,99*33/46

0,61*33/46

18*33/46

3*33/46

11,6*33/46

1,5*33/46

33

5*40/46

3,3*40/46

2,99*40/46

0,61*40/46

18*40/46

3*40/46

11,6*40/46

1,5*40/46

40

5*20/46

3,3*20/46

2,99*20/46

0,61*20/46

18*20/46

3*20/46

11,6*20/46

1,5*20/46

20

5*11,5/46

3,3*11,5/46

2,99*11,5/46

0,61*11,5/46

18* 11,5/46

3* 11,5/46

11,6*11,5/46

1,5*11,5/46

11,5

5*4,5/46

3,3*4,5/46

2,99*4,5/46

0,61*4,5/46

18*4,5/46

3*4,5/46

11,6*4,5/46

1,5*4,5/46

4,5

Immediately

Immediately

End of month

Immediately

Immediately

Immediately

Immediately

Immediately

Pack

ages

- 46

%

% of the Commission in % of the purchase Frequency of settlementName of commission

Maximum commission %

Dis

coun

t vou

cher

- 33

%

Trav

els

with

ligh

t rig

ht -

11,5

%

Vouc

her -

40%

With

web

site

usa

ge ri

ght -

20%

Trav

els

with

full

right

- 4,

5%

3. The commission content of each product



The bases of the above % is the net purchase price of the sold products and services reduced by the bank card payment transaction costs.

The frequency of calculation and payment of the commission may differ.

The commission is paid each 2 weeks, until 20th and 5th of each month, with the exception of the matching bonus, that is paid out monthly until 5th each month. Only those commissions are paid, where the criteria are fulfilled (e.g. matrix, car bonus, matching).

The car bonus is only paid by the SWISS HALLEY AG, in case the amount of the commission payable to the distributor is minimum USD 5.000 in case of this type of commission. A further condition of the payment that the distributor submits to the SWISS HALLEY AG the documents and receipts verifying the purchase of the car.

The SWISS HALLEY AG reserves the right to determine what type and brand car shall be paid from the bonus. In case the distributor reaches the condition of USD 5.000, he is entitled for the payment of the car bonus in each month, irrespective of the limit, in case the distributor certifies that he uses the received commission for the purchase or finance of a car. In case the distributor is not able to certify this, then he is not entitled for payment until the submission of these documents.



at least 300-300 qualifying points on 3 separate lines (or start with a LIFE package, and at least 300-300 qualifying points on 2 separate lines)

Conditions

3 front

+ LIFE PACKAGE

The qualifying levels are distributor career levels, that are reached following the completion of certain own and group turnover.

The distributors on the different career levels are entitled for different % of the different types of commission, depending on which career level they are (see II/3 bonuses).

Purchase of distributor package

Conditions

II/2 Qualifying levels

0



at least 1-1 ‘3 front’ distributor on 5 separate lines (or start with a LIFE package and at least 1-1 ‘3 front’ distributor on 4 lines) and there shall be an EC level distributor on the 6th level

Conditions

Double Executive Club (DEC)

DEC

EC

at least 1-1 ‘3 front’ distributor on 3 separate lines (or start with a LIFE package and at least 1-1 ‘3 front’ distributor on 2 lines)

Conditions

Executive Club (EC)

EC



at least 18 000 - 18 000 qualifying points on 6 separate lines

Conditions

Gold Leader

GL

at least 1-1 gold on 3 separate lines

Conditions

Gold Founder

GF

GL

GL

GL



at least 1-1 gold on 6 separate lines

at least 1-1 platinum on 3 separate lines

Conditions

Conditions

Platium Leader

Platinum Founder

PL

PF

GL GL

GL

PL

PL

PL

GL

GL

GL



at least 1-1 platinum on 6 separate line

at least 1-1 emerald on 3 separate lines

Conditions

Conditions

Emerald Leader

Emelard Founder

EL

EF

PL

PL

PL

PLPL

PL

EL

EL

EL



at least 1-1 emerald on 6 separate lines

Conditions

Diamond Leader

DL

EL EL

EL

EL

ELEL

When creating the compensation plan, the model is the first purchase travel package offer with 46%, therefore the % values at the description refer to the 46% commission content, in case no different information is indicated. The maximum commission % is determined here connected to the purchase price relevant to the individual bonuses, in case of other products %, furthermore the qualifying point multiplier is calculated based on the % portion of the commission content (e.g. in case of 11,5% commission content, the commission is 11,5/46 %, and also the qualifying point multiplier).

In case the amount of the total commission connected to a certain product differs from the 46% number, then the percentage amount of certain commission types is determined based on its proportion compared to the 46% commission.

1. The Fireflies immediately transfers 5% of the net prices of the travel packages (Basic, Smart, Life) on the internal commission point balance of the sponsor, furthermore commission percentages are also transferred based on the purchase of other products, repurchases (see II/1.,3).

2. The direct bonus is paid to the first direct distributor above the user or distributor purchasing the product.

II/3. Bonuses

1. Direct bonus



1. Maximum 18% of the net turnover of the products sold in the distributor’s group may be earned with depth bonus (travel packages, travel vouchers, hotel reservations, website usage right). The amount of the percentage depends on the career level and product type. The following chart contains the depth bonus percentages that may be earned at each career level. The distributor may earn the percentage difference between the distributor career level users in the downline distributor group and the concerned distributor, in case that is larger than zero.

2. In case of Depth bonus it is calculated based on the difference between the commission-based turnover of the group below the distributor and the difference between the qualifying level of the distributor level and the distributor level under him. The commission of the concerned distributor is the percentage of the total turnover below the distributor belonging to the qualifying level of the distributor, reduced by the Depth commission of the distributors below him (it may not be negative, i.e. in case there is a similar or higher level distributor under the distributor, then the value of the Depth commission on the concerned line is zero).

1. The Matching bonus may be 13% of the Direct and Depth Bonus earned within one month by the distributors in the Distributor’s Group, transferred to the distributor’s commission balance in case the concerned distributor received Direct and Depth Bonus in the concerned month. When calculating the matching bonus the distributors on the different career levels are entitled for matching bonus until different depths. When determining the matching depth, the passive levels (i.e. those levels that did not receive either depth or direct bonus in the concerned month) are not taken into consideration. So for example if a distributor is entitled for Matching bonus for one depth, but there are three passive distributors on the line, and the fourth distributor earns commission, then this means one matching depth to the distributor, and the distributor is entitled for commission.

2. Depth bonus

3. Matching bonus

3 front

Gold Founder

DEC

Platinum Founder

Emerald Founder

3%

11%

7%

15%

18%

EC

Platinum Leader

Gold Leader

Emerald Leader

5%

13%

9%

17%



2. The Matching bonus is calculated in the end of each month, based on the commission of the distributors in the downline of the concerned distributor.

In case of purchase maximum 13% (maximum 2,99% of the product price) is paid out of the total Direct and Depth commission.

The depth, after that the user is entitled for commission (maximum 13 depths, 1% per depth) is determined by qualifying levels. Those levels on the lines are not taken into consideration, where no commission was earned from the above items in the past month.

Only a distributor is entitled for matching bonus, who had DIRECT and DEPTH bonus in the concerned month.

1% of the commission turnover of the concerned level is bonus on the matching depth level.

The matching bonus is calculated based on the DIRECT and DEPTH bonus, as follows:

(a) We determine the DIRECT and DEPTH commission received by each distributor in the total line in the concerned month.

(b) In case there is a distributor where this value is zero, that distributor is not taken into consideration in that line when calculating the matching bonus.

(c) The following calculation is performed for each remaining distributor in the concerned line:

We calculate the sum of the DIRECT and DEPTH commission earned on each level of the concerned line.

We check, how deep we have to calculate the matching commission in case of the concerned distributor, and 1% of the DIRECT and DEPTH commission is added in case of the concerned distributor as MATCHING commission.



Career level

Gold Founder

DEC

Platinum Founder

Emerald Founder

Steps

5

1

10

12

Platinum Leader

Gold Leader

Emerald Leader

Diamond Leader

7

3

11

13

4. Matrix bonus

The matrix bonus is the commission paid for the completion of the empty positions in the small matrix and large matrix. Both the small matrix and the large matrix contains 8-8 empty positions as bases. A matrix is complete in case all 8 positions are full. The 8 empty positions in the large matrix may be completed by 8 full small matrix, i.e. 8 empty positions of a small matrix has to be filled so that 1 empty matrix in the large matrix shall be completed. The completion of the empty positions requires certain amount of turnover depending on the career level. In case either in a small matrix or in a large matrix no empty position is completed during one year, then a proportionate commission is paid out for the position completed so far. Those matrix of the distributor are exemptions, who - during migration to this compensation plan – started their operation according to this compensation plan with partly completed matrices (i.e. the completed positions depend on the conditions of migration).

1. Small matrix:

Each position of the distributor’s small matrix may be uploaded with 160 (USD 160) commission points, which points also derive from the turnover of the distributor’s group, similarly to the Direct and Depth commission. 6,6% commission is uploaded to the small matrix, from the net value of the package purchase of the directly linked users or distributors, which may be increased at most for 11,6%. USD 450 is paid for uploading the total small matrix. The completion of a small matrix position is completed in case of completion of USD 160 commission.

USD 450 is paid for the completion of the small matrix. Preliminary matrix commission:

In case four lower locations / positions are completed in the small matrix, then the distributor shall be entitled for USD 200 matrix commission. Following the completion of the small matrix, the small matrix is distributed into two, and the total number of the matrices increase by one. Following the completion of a small matrix, the distributor earns USD 450.



Career

EC

0

Gold Leader

Depth component %

4,6

2,6

6,6

DEC

Gold Founder

3 front

5,6

7,6

3,6

The preliminary matrix commission forms part of the USD 450 to be paid.

2. Large matrix:

The uploading of each small matrix also means the uploading of a new large matrix. Commission is paid to the distributor following uploading each position in the large matrix, USD 300 is paid for the first two positions, USD 400, 500, 700, 800, 1100, 2000 is paid for positions from 3 to 8. Furthermore in case of each new large matrix USD 500 matrix opening bonus is paid for the uploading of the first position. Following the large matrix is completed, it is divided into two, and the total number of matrices is increased by one.

USD 450 is paid for the completion of a small matrix, and in case all 8 small matrices are completed that are necessary for the completion of a large matrix, then altogether USD 3600 bonus is paid for the completion of these small matrices. USD 6600 is paid for the completion of the total large matrix. The large matrices of those distributors form as example, who started with partly completed large matrices in this present compensation plan, coming from the previous compensation plan, furthermore they had at least one completed large matrix in the previous compensation plan during their business activity. These distributors are entitled for USD 6000 for the first completed large matrix in this present compensation plan, and following the second completely completed large matrix they shall be entitled for USD 6600 for each completed large matrix.

5. Leader generation bonus

1. The distributor generation bonus is basically the commission of the leaders on gold or higher leader levels, which is paid, in case there are members in your group, who are on the same or higher qualifying level as you. The amount of the bonus depends on the purchases within the group below these members, on the distributor’s qualifying level furthermore the number of partners entitled for distributor generation bonus in your team. In case you are on Founder gold leader level, and there is one person in your group who is Founder gold leader, then following the package purchase below that person, then you receive 15% of the 5% of the net value of the package purchase as Leader generation bonus.



2. In case the distributor is a Platinum leader and there are two Platinum leaders in his group on one line, then he receives 12% of the 4% of the net value of the package purchase as bonus, furthermore he receives 15% of 5% of the half of the net value of the purchase as bonus, while the distributor receives 15% of the 5% of the net value of the purchase as distributor generation bonus.

3. The Leader generation bonus is provided above the Founder gold leader level, and is calculated from the turnover below the distributors on equal or higher level in the line of the concerned distributor. The entitlement for the depth bonus is determined on each qualifying level (maximum 5). The % paid per each generation level may be paid from a certain generation turnover only once. In case the concerned % is already paid out from the concerned generation turnover, then half of the turnover has to be taken into consideration on the following level – where generation bonus is paid – and the % value shall be paid for that. Furthermore the distributor entitled for generation bonus shall receive the % commission calculated based on the highest possible generation turnover (not paid out yet).

The algorithm determining the amount of the bonus:

We find the distributor in the line above the concerned distributor at a certain transaction, who is on Founder Gold or higher qualifying level, and there is a distributor on the same or higher qualifying level on the above line –but at least Founder Gold. (This User shall be called ‘Founder’ hereinafter.) The generation turnover (‘v’) of this distributor (’Founder’) deriving from this transaction equals with the price of the purchase product (the ’founder’ does not receive generation bonus). In case there is no such user on the concerned line, no bonus is paid out.

Following that we step further on the line upwards, and look for the distributors who are entitled for generation bonus. A distributor is only entitled for generation bonus, in case there is a distributor on the same or higher level on the line ending with the ’Founder’ distributor, compared to the concerned distributor.

In case we find a distributor on the line entitled for generation bonus, his generation bonus shall be determined as follows:

We calculate, how many distributors are there between the ’Founder’ and the selected distributor, who are on the same or higher qualifying level (after whom generation bonus is paid), this number shall be ’x’.

We check, which depth levels shall generation bonus be paid for to the concerned distributor (maximum 5 levels), this number shall be ’’y’.

We take min(x,y) and we calculate the bonus for the concerned distributor for those levels.

We determine the amount of the generation turnover on each levels calculated, based on which generation turnover generation bonus was paid on the concerned level between the ’Founder’ and the selected user. The generation turnover is halved at each bonus payment (i.e. the first distributor above the ’Founder’, who is entitled for generation bonus, receives ’v’ *15%*5%, and the following such distributor, who is entitled for generation bonus, receives ’v’ *15%*5%/2, etc.). The concerned distributor shall be entitled for bonus on the concerned level from the value of the generation turnover levels as follows:

5% of 15% of its generation turnover on the first level



4% of 12% of its generation turnover on the second level

3% of 9% of its generation turnover on the third level

2% of 6% of its generation turnover on the fourth level

1% of 3% of its generation turnover on the fifth level.

1. The distributors on Gold level receive car purchase support, which consists a higher lump sum and regular monthly payments. The first payment takes place following the Gold career level and the payment of the USD 5.000 car purchase support.

2. The Car bonus is paid above the Gold level, it’s maximum amount is 3% of the product sales taken into consideration when calculating the commission. The bonus of the concerned distributor is the % belonging to his qualifying level, calculated based on the total turnover below the concerned distributor, reduced by the car bonus of the distributors below him (it may not be negative, i.e. in case there is a distributor who is on the same or higher level, then the amount of the Car bonus is zero on the concerned line).

6. Car bonus

Career level

Platinum Leader

Gold Leader

Emerald Leader

%

2,5

1,5

3

Platinum Founder

Gold Founder

2,75

2

Shall be introduced later

The Challenge pool bonus is a pool, where 0,61% of the turnover forming the basis of the commission calculation is placed. The payment conditions of the Challenge pool bonus are determined by the management of the company.

7. Challenge pool bonus



According to the main rule 10% of the commission calculated and payable for the distributor is credited on the so-called distributor travel account. The distributor may freely purchase any product or service offered by the SWISS HALLEY AG from its free balance on the distributor travel account, furthermore in case of purchase of a travel voucher the distributor may use these for payment of additional amount.

II/4. Distributor travel account

The payment transaction takes place on 5th and 20th of each month, except the matching bonus, which is only paid once a month, together with the transfer on 5th. Only those commissions are paid, that are freed from the quarantine.

a) The commission is paid by bank transfer to the bank account provided by the distributor

b) Distributor obligations

Providing the company data

Those distributors, who would like to register in the FireFlies system as companies, shall provide the following data and verify the accuracy of those data:

Company;

Company name;

Company registration No.;

Taxation No.;

Document that verifies that the user is the sole or partial owner of the company;

IBAN No.;

Bank name;

S.W.I.F.T.,

III. Regulations for payment of the commission

Shall be introduced later

The bonus paid based on the capital is a pool, where 1,5% of the turnover forming the basis of the commission calculation is placed. The payment conditions of the Bonus paid based on the capital is determined by the management of the company.

8. Bonus paid based on the capital



In case of private entrepreneur the number and introduction of the entrepreneurial ID.

The Memorandum of association, furthermore the extract of the Commercial Register needs to be uploaded. The company data are accepted in case the user is a partner in the concerned company, i.e. the user is the sole owner or is one of the owners. The user is obliged to indicate that part of the uploaded document, where he is listed as owner.

Uploading the bank account verification

The User shall verify, that the provided bank account is his, or belongs to the company where he is also a partner. Therefore the user shall be obliged to upload a bank account extract, where the name of the private person / company, furthermore the connecting bank account number is indicated.

In case a distributor fails to pay the renewal of the yearly entrance fee to the use of the website, then he is deleted as distributor following 90 days from the structure. When deletion, the distributor looses its right as distributor. The qualifying points calculated from the deleted distributors further qualify to the qualification of the above distributors.

The termination of the distributor results the loss of the career level, and fails to be a distributor in the future.

In case the distributor deletes itself, he may not register for 6 month.

Those distributors, who possess entrance fee, may request the deletion of their registration from the support team, and they become inactive distributors for the next half year. They may reregister into the FF system freely following a half month inactivity (based on invitation).

Following the deletion of the User, for the sake of the payments the termination of the quarantine of the commissions have to arrive, in order to pay the below mentioned elements.

In case the user requests the deletion from the fireflies system, then:

The TravelCard balance is transferred

The balance of the total commission is transferred

All the commission payable for the completion of the matrix are transferred, reduced by the matrix commissions paid already

The amount collected in the Car bonus is transferred

The amount collected on the challenge account is transferred (in case the deletion is requested during the challenge)

In case there is a free voucher, he may provide a user or a distributor, whom he intends to transfer his travel voucher /vouchers

IV. Further provisions, deletion of the distributor



In case he fails to provide a distributor or a user to whom he intends to transfer is unused travel voucher, then the SWISS HALLEY AG transfers his distributor status into user profile. Later this person may use his travel voucher as a registered user.

The partial lines the downline of the user shall be linked to the user directly above.


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