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General Terms and Conditions for Distributors

I.GENERAL TERMS AND CONDITIONS FOR DISTRIBUTORS

I.1. APPLICATION OF THE GENERAL TERMS AND CONDITIONS FOR DISTRIBUTORS

(1) The following general terms and conditions qualify as a Distribution Agreement concluded between Swiss Halley AG (Churerstraße 47, 8808 Pfäffikon, Switzerland; represented by: Ulrich Märki CEO, on the same business address) and the independent business partners (distributor, hereinafter referred to as: ’Distributor’).

(2) Swiss Halley AG enters into business relationship and cooperates with the distributors exclusively based on these general terms and conditions.

(3) The General Business Terms and Conditions and the Fireflies Operational and Compensation Plan form inseparable part of this General Terms and Conditions for Distributors. These three documents together are the unified general terms and conditions for distributors, and Swiss Halley AG only enters into business relationship with the future distributor after the distributor accepted all above documents. The acceptance of the above three documents is also compulsory to the distributors being already in a contractual and business relationship with Swiss Halley AG, in case they intend to continue this contractual relationship in the new Fireflies system as well, and in case they intend to take the income earning opportunities offered by the new Compensation Plan forming the basis of the new system.

I.2. SUBJECT AND CONCLUSION OF THE DISTRIBUTION AGREEMENT

(1) Swiss Halley AG sells travel products and services through the distribution network of European and other countries. The distributor offers the products and services sold by Swiss Halley AG to the potential and existing clients of Swiss Halley AG.

(2) The distributor receives commission for this activity, and is not obliged to purchase the services.

(3) Anyone can become a distributor after registering on the website www.fireflies.com, accepting the GBTC, following this, by the payment of the annual Entry Fee together with the acceptance of the present General Terms and Conditions for Distributors and its attachments by clicking on the concerned box on the website www.fireflies.com online. In case the distributor does not purchase the Entry Fee from the company within 24 hours after the acceptance of the GTCD they will be qualified as a user, and in order for them to gain distributor status, it will be necessary to accept the GTCD again and purchase the Entry Fee for distributors within 24 hours after acceptance.

I.3. THE GENERAL PRECONDITIONS OF THE AGREEMENT

(1) The Agreement may be concluded with legal persons (companies) and private persons, who are above 18 and perform business activity according to the applicable legal provisions. A person (either a natural person performing business activity, or a legal person operating as company) can only conclude one distribution agreement with Swiss Halley AG that means: they cannot possess more distribution web offices.

(2) Before the payment of the Entry Fee the distributor shall fill the distributor application form completely and accept the General Terms and Conditions for Distributors by clicking in the box, before sending the online registration form. The distributor shall immediately inform Swiss Halley AG in case there is a change in their personal or company data, by modifying the data on the form. Swiss Halley AG reserves the right to acquire further information from the distributors in certain cases.

(3) Swiss Halley AG reserves the right, to reject the distributor application without stating reasons.

(4) In case of breach of the obligations listed in Article (1) and (2) Swiss Halley AG shall be entitled to terminate the Distribution Agreement without prior notification, with immediate effect. Furthermore, in case of immediate termination, Swiss Halley AG expressly reserves the right to claim further compensation.

I.4. STATUS OF THE DISTRIBUTOR AS AN ENTREPRENEUR, OBLIGATIONS OF THE DISTRIBUTOR

(1) The distributor acts as an independent company. The distributor is not an employee, commercial representative or agent of Swiss Halley AG. The trade regulations, takeover or other business obligations do not apply to the distributor. Except for the contractual obligations, the orders of Swiss Halley AG do not affect the distributor. The distributor bears all risks connected to his business activity, including bearing all business costs, i.e. the payment of its employees according to the regulations. The distributor shall be obliged to operate his business as expected from a merchant, and ensure all measures, that may also include the opening of an own office.

(2) As an individual company the distributor is responsible to observe the relevant provisions, including the tax and social security regulations (e.g. requesting a tax number or reporting its employees at the social security bodies, acquiring operation permission, in case it is necessary). The distributor declares, that he pays all taxes, allowances, duties according to the relevant regulations payable after the income, earnings received for the activity performed for Swiss Halley AG. Swiss Halley AG reserves the right to deduct the amount of taxes, allowances and duties payable by the distributor from commission payable for the distributor, in case a law or legal provision orders Swiss Halley AG to do so. Swiss Halley AG does not pay health insurance allowance after the distributor. The distributor does not possess authorization to make declaration or to undertake obligations representing Swiss Halley AG.

(3) The distributor shall be obliged to ensure that no third parties have access to the password and registration data of the distributor.

(4) During its activity the distributor may not harm third parties’ rights, may not bother third parties and may not violate effective laws. In case of sending electronic marketing materials, no unwanted electronic advertisements may be sent, marketing faxes, text messages or marketing phone calls can be made (even using automated call centers). No irregular or illegal activity may be performed, e.g. unauthorized or incorrect marketing activity. Especially, the distributor may not communicate false or deceiving data from the services and sale system of Swiss Halley AG.

(5) Furthermore the distributor is not entitled to market and/or sell the products (services) of competitors. Furthermore the distributor is not entitled to sell the products and services of other companies to other distributors, being in contractual relationship with Swiss Halley AG or to the users of Swiss Halley AG. In case at the same time a distributor performs activity at several companies, that are not competitors of Swiss Halley AG, then the distributor shall be obliged to perform the concerned activity (besides his own lower line), so that they do not become interconnected, furthermore the business activity performed for Swiss Halley AG shall not mix with the business activity performed for the other companies. Besides, the distributor may not recruit other distributors, being in contractual relationship with Swiss Halley AG to sell the products and services of other companies. By concluding the Distribution Agreement the distributor may not perform ethical delict against another distributor or company or regarding other Distribution Agreements that were concluded with other companies and that are valid.

(6) The distributor is obliged to keep the business secrets and structure of Swiss Halley AG confidential. The information regarding the income possibilities of the lower line especially qualify as confidential information. This obligation shall remain intact following the termination of the Distribution Agreement.

(7) Swiss Halley AG provides marketing and sale-documentation controlled from all aspects for all countries that are located in the web office of the distributor. It is forbidden to use, produce and market own sales brochures, own product brochures or other individually created press and marketing materials, without the prior written approval of Swiss Halley AG. This approval may be withdrawn any time. The services of Swiss Halley AG through the Internet may only be marketed with the use of the marketing devices and marketing communication material provided. The distributor may not publish data regarding his earnings or the income earning opportunity at Swiss Halley AG. In case the distributor advertises the services of Swiss Halley AG on other Internet media, e.g. community websites (e.g. Facebook), online blogs or chat rooms, then he may only use the official marketing communication provided by Swiss Halley AG and may not publish data regarding his earnings or the income possibility at Swiss Halley AG. The distributors may not sell or otherwise propagate their own marketing and/or sales documentation to other Swiss Halley AG distributors, furthermore they may not publish those in any way.

(8) Furthermore the distributors may introduce the services on fairs and expos following the prior written consent of Swiss Halley AG. Its preconditions is that the introduction has to be in accordance with the provisions of the Agreement concluded between Swiss Halley AG and its distributors. However there is a restriction, that the distributor may not offer the products to its competitors.

(9) The services, products of Swiss Halley AG may not be offered on free auction, open market or garage sale, exchange expo, in a store, on Internet markets (e.g. eBay, Amazon) or sold on similar sales place.

(10) During his business activity the distributor may not convey an impression that he is acting as an agent or representative of Swiss Halley AG and may not convey an impression, that he depends on Swiss Halley AG, and follows its orders. The distributor may not take money representing Swiss Halley AG, furthermore is not entitled to make any declaration or undertake any obligation. During his marketing activity, the distributor has to abstain from fraudulent commercial practice. The distributor is expressly obliged to introduce himself as the independent and individual commercial partner of Swiss Halley AG. The Internet sites, letter-papers, business cards, furthermore advertisements, marketing material and such shall indicate the distributor as individually liable, and these materials have to contain the ’individual business partner of Swiss Halley AG’ text. Furthermore the distributor is not allowed to take up a loan, pay costs, undertake obligations, open a bank account, conclude other contracts or make a declaration containing obligations using the name of Swiss Halley AG.

(11) During its business activity the distributor may not mention negatively, detractingly or otherwise illegally the brand names of the competition, may not evaluate other companies negatively or detractingly, furthermore may not apply negative, despising or other illegal evaluation in order to recruit the distributors of other companies.

(12) All presentation, marketing, educational and film material provided in the web office (including the photos as well) is under the intellectual property protection of Swiss Halley AG. These materials may not be either partly or totally multiplied, spread or published without the express written consent of Swiss Halley AG. Possessing the written approval, the distributor is obliged to publish the legal and marketing documentation related to the online marketing activity connected to Swiss Halley AG on its website created for the publication of the online marketing activity connected to Swiss Halley AG.

(13) The use of the name, trade name, titles and business names (hereinafter referred to as: ’distinguishing marks’) is also only allowed with the prior written approval of Swiss Halley AG. The same is applicable to the registration of such domain names and e-mail addresses that contain a characteristic of Swiss Halley AG in any form. Swiss Halley AG may request, that those Internet domain names or e-mail addresses, that contain some kind of Swiss Halley AG characteristic, and the use of which were not approved by Swiss Halley AG in writing, should be deleted, furthermore in case of Internet domain these should be transferred to Swiss Halley AG. In case of transfer, Swiss Halley AG undertakes to compensate the costs of the transfer of the Internet domain.

(14) Bonus manipulations are forbidden. It is forbidden among others to sponsor such distributor, who actually does not perform business activity connected to Swiss Halley AG (so-called strawman), furthermore either open or hidden multiplied registration. It is forbidden to use the name of spouses, relatives, business names, companies limited by shares, private companies, investment companies and third parties, in order to evade this provision.

(15) 1 month after the deletion, by paying the Entrance Fee, the distributor gets back its distributor status. However the deletion results in the loss of the old structure that is not recovered with the new distributor status. The distributor status may be recovered after 1 month only in case the distributor performed no activity for Swiss Halley AG during this period.

Any distributor who wishes to continue their distribution activity on another sponsor line can request the deletion of their distributor status at Swiss Halley AG in writing. In case the request is approved, after 1 month of inactivity and the purchase of the Entry Fee, they can continue their distribution work on another sponsor line.

(16) The distributor cannot answer the questions of the press in connection with Swiss Halley AG, its services, the Compensation Plan of Swiss Halley AG or other services offered by Swiss Halley AG. The distributor is obliged to forward all questions from the press immediately to Swiss Halley AG.

(17) The distributor may only market the services for Swiss Halley AG in those countries (states), or recruit further distributors, where Swiss Halley AG officially opened its market.

(18) A distributor, who is a sponsor at the same time, as well, shall be obliged to support and train its lower line. For example the sponsor is obliged – including but not limited to – keep trainings to its lower line about sales techniques and services (including handing over all legally relevant contractual documentation), inform them about the compensation plan. The sponsor receives no compensation for this activity, since he receives commission based on the success of its lower line.

I.5. NOTICES, PENALTY, COMPENSATION, EXEMPTION FROM LIABILITY

(1) In case of breach of the obligations listed in Article 4 Swiss Halley AG sends a written notice, determining a 10 day deadline for terminating the obligation.

(2) In case after the termination of the deadline contained in Article (1) the person commits the same or similar breach, or the original breach was not terminated, then the penalty immediately becomes due and Swiss Halley AG determines its amount, that is supervised by the competent court in case of legal dispute. Furthermore, legal costs may also occur related to the enforcement of the claim for penalty that has to be compensated by the distributor.

(3) Furthermore the distributor, irrespective of the penalty, shall be responsible for all damages emerged for Swiss Halley AG, that derive from the breach as described above and the breach of the Distribution Agreement or the violation of other rights of Swiss Halley AG.

(4) The distributor is obliged to exempt Swiss Halley AG at first notice made by Swiss Halley AG from all claims made by third parties resulting from the breach of the above obligations or violation of the laws by distributors. Besides the distributor is obliged to undertake all costs, especially legal, judicial and compensation costs that arose for Swiss Halley AG connected to the above mentioned.

I.6. PROTECTION OF THE DISTRIBUTOR, EXCLUSION OF TERRITORIAL PROTECTION, SPECIAL RIGHTS

(1) A newly joined distributor will belong to the organization of the active distributor, who announced that person for the first time at Swiss Halley AG (distributor protection), the date of payment of the registration fee shall be taken into consideration in this regard. In case two distributors intend to indicate the same new distributor as sponsored, then Swiss Halley AG will only take the sponsor indicated at the first Entry Fee.

(2) The observance of the sponsor lines is the basic sales principle of Swiss Halley AG that is necessary for the protection of all distributors. The distributors may not step over to another line. In case a distributor tries to register himself several times through a strawman, spouse, other relative, trade name, company limited by shares, private company or investment company at Swiss Halley AG in order to change lines, or by giving false data create such a distributor relationship, this may result in the immediate termination of the distributor status without warning.

(3) It is the exclusive right of distributors to create and use individual recommendation links (referral links) enabling other users to register.

(4) Swiss Halley AG is entitled to delete the name and addresses of the distributor from the system, in case the marketing material or mails are sent back with the following signs: ’moved’, ’died’, ’not taken over’ or similar and the distributor does not correct the false data within reasonable period.

I.7. REGULATION OF SIGNIFICANT CHANGES

The user is entitled to object against the content appearing in the information bar or pop-up window at the top of the Fireflies.com website or contents forwarded via email in 14 days. If the user does not seize this opportunity, they accept the content appearing in the information bar, the pop-up windows and the contents forwarded via email and all the advantages and possible disadvantages regarding these contents without any conditions, and waives any further claims.​​

I.8. MARKETING MATERIALS, ALLOWANCES, DATA PROCESS

The marketing materials and other allowances provided freely by Swiss Halley AG may be withdrawn any time in the future.

I.9. PAYMENT CONDITIONS, PAYMENT METHODS OF THE COMMISSIONS, TRANSFER PROHIBITION

(1) Swiss Halley AG reserves the right that it may order the distributor to verify its tax number or tax identification number, furthermore its business activity before the first payment of the commission.

(2) The payment of the commission of the distributor shall take place to the bank account indicated in the web office.

(3) The possibilities for receiving commission are published in the all-time effective compensation plan. In case the career level changes, the distributor is entitled to the commission and rights entailed by the new career level exclusively after the date when the career level is changed.

(4) Swiss Halley AG shall be entitled to partly or totally settle its claims towards the distributor from the commission.

(5) The distributor may not assign or offer as security its claims resulting from the Distribution Agreement. The Agreement may not be encumbered with the rights of third parties.

(6) Swiss Halley AG transfers the commissions/bonuses payable to the distributors to the account numbers provided by the distributors twice a month, on the 5th and the 20th day of every month (in case the 5th or the 20th is not a banking day, then on the first banking day following the 5th or the 20th), on the basis of the accounting immediately prior to the payment. After the due date of the payments, the distributor has 30 days to raise objection concerning the wrong payments, outstanding commission liabilities in writing, to the e-mail address info@fireflies.com. Following this, the commission accounting made between Swiss Halley AG and the distributor shall be regarded as accepted, correct and complete by both parties.

(7) In case the payment to the distributor cannot be carried out due to reasons that are attributable to the distributor (e.g. due to the incompleteness of data mentioned in clauses (1) and (2)), Swiss Halley AG requests the distributor to eliminate the reasons undermining the payment, in an email message, the distributor has 60 days, after the email is sent, to carry this out. In case, due to reasons attributable to the distributor, payment for them cannot be carried out, the distributor is not entitled to receive commission or income payment credited to the Travel Balance, either.

In case, despite the request, the distributor does not eliminate the reasons preventing the payment and does not send a notification about it to the email address info@fireflies.com within 60 days, it is considered by Swiss Halley AG as a waiver, the distributor cannot claim the commission/bonus later (including the amounts on the Travel Balance originating from commission and bonus), Swiss Halley AG becomes authorized to use it.

(8) The commissions under the minimum amount of USD 20* are not paid out. In case the distributor does not reach the minimum amount*, the commission claim is registered in the commission account at Swiss Halley AG, and when reaching the minimal payment amount* it is paid to the distributor at the first commission payment date.

*Regarding distributors contracted as legal persons or personal associations, the minimum payment amount is the minimum transfer amount.

The amount transferred to the Travel Balance is not considered while determining the minimum payment amount. In case payment cannot be made, as the minimum payment amount is not reached, transfer to the Travel Balance is not carried out, either.

(9) At a given time, that distributor can be regarded as one having an active entry fee or active web office usage fee who owns an entry fee or web office usage fee the expiry date of which is at a later point in time.

(10) Commission can exclusively be paid to distributors having an active entry fee or an active web office usage fee.

I.10. DISABLING THE DISTRIBUTOR

(1) In case the distributor fails to provide the necessary documents within 30 days calculated from the acknowledgement of the obligations forming the precondition of commission payment, at the notice of Swiss Halley AG, then Swiss Halley AG is entitled to temporarily disable the distributor within the sales network, until the date of receiving the necessary documentation, so that the distributor shall not be entitled meanwhile to market services, nor recruit other distributors or use other distributor services. The same is applicable, when the distributor fails to perform its payment despite the notice or the payment deadline, the distributor is placed in inactive status for the period determined in article I.11.(1) until the payment is performed or the contract is terminated. During the inactive status, the distributor is not entitled for immediate termination, only in case the inactive status is not due to the distributor.

(2) Irrespective of the reasons for disabling mentioned in Article (1), Swiss Halley AG reserves the right to disable the distributor due to serious reasons. Swiss Halley AG expressly reserves the right to disable the access (even online) of the distributor to the system without deadline, in case the distributor breaches the obligations mentioned in the above paragraph or breaches other legal provisions or there is other serious reason, and the distributor fails to terminate the breach at the notification of Swiss Halley AG within the deadline determined in Article I.5. In case of violating the obligations regulated in the above articles, Swiss Halley AG shall be entitled to disable the distributor without prior notification.

I.11. TERM AND TERMINATION OF THE AGREEMENT, CONSEQUENCES OF TERMINATION, DEATH OF THE DISTRIBUTOR

(1) The contract between the Parties is automatically extended by 12 months in case the distributor pays the annual usage fee of the web office anytime until its expiry. The distributor has 90 calendar days after the expiry of the entry fee or the web office usage fee to pay the annual usage fee of the web office. Commissions created after the expiry date (including the amounts on the Travel Balance originating from commission and bonus), are quarantined until the date when the annual usage fee of the web office is paid but for a maximum period of 90 calendar days, except for the part of the Travel Balance that originates from commissions and bonuses which is quarantined for 60 calendar days.The starting date of the purchased annual web office usage fee’s validity period is the last day of the validity period concerning the previous entry fee or web office usage fee.

(2) The contract is automatically terminated, and the commissions quarantined after the expiry of the entry fee or the web office usage fee (except for the amounts on the Travel Balance originating from commission and bonus, see later), are not paid, in case the distributor does not pay the annual usage fee of the web office within 90 calendar days after the expiry of the entry fee or the web office usage fee. After the entry fee or web office usage fee expires, the part of the quarantined commission that originates from Travel Balance commission and bonuses is not paid if the distributor does not pay the annual usage fee of the web office within 60 calendar days following the expiry of the entry fee or web office usage fee. Commissions quarantined at the payment of the entry fee or web office usage fee are paid on the usual payment day following their release from the quarantine.

(3)The contract can be terminated by either party through ordinary termination, upon 30 days prior notice. The terminating party shall send its termination in writing, by post or via e-mail.

(4) The Distribution Agreement terminates with the death of the distributor, the latest, or in case the distributor is registered in the company register, then at deletion from the company register. The Distribution Agreement may be inherited by observing the legal conditions. A new Distribution Agreement shall be concluded with the heir within 6 months, and through this the heir enters into the deceased’s place gaining the deceased’s rights and obligations. The death shall be proven with a death certificate. In case there is a will that contains provisions for the inheritance of the Distribution Agreement, the copy authenticated by a notary has to be attached. In case no measures are taken following 6 months passed, all rights and obligations deriving from the Agreement are transferred to Swiss Halley AG. If in the concerned case the 6 month deadline is too short for the heir(s), the deadline exceptionally may be extended with a reasonable period.

(5) In case the distributor is not capable of continuing his activities due to his age or health status, Swiss Halley AG undertakes to continue the contractual relationship with a person indicated by the distributor. The provisions of Article (3) regarding the death shall be appropriately applied to continue the contractual relationship.

(6) Independent of the termination cause mentioned in Article (1) Swiss Halley AG reserves the right to terminate the Agreement due to serious reasons. A serious reason for example is the breach of obligations contained in Article I.4, in case the distributor fails to perform its obligation determined in Article I.5 until deadline, or in case following the termination of the breach later the same or similar breach takes place.

(7) Following the termination of the Agreement it is forbidden to use such Internet domain or e-mail addresses, that contain the ’ Swiss Halley’ name, or any Swiss Halley AG brand name, trade name or title. In the case of Internet domains the distributor has to hand these over to Swiss Halley AG, and pay the transfer costs at the same time.

(8) Following the termination of the Agreement, a new Agreement may only be concluded after the 1-month deadline passed with the special written consent of Swiss Halley AG. The user may send a request to the e-mail address info@fireflies.com to ask for a permission to conclude a new Agreement with the indication of his future sponsor. Swiss Halley AG informs the user via a message sent to the user’s registered e-mail address about the acceptance or denial of the request. The user may conclude a new Agreement without special written consent 6 months after the termination of the Agreement.

(9) Following the termination of the Agreement the distributor shall not be entitled to receive commission as trade representative, since the distributor is not a trade representative within the scope of the trade law.

(10) In case the distributor uses other services as well, not listed in the Distribution Agreement, these services shall remain effective, irrespective of the termination of the Distribution Agreement, except that at the termination of the Distribution Agreement the distributor expressly requests the termination of these services. In case following the termination of the Agreement the distributor purchases further services from Swiss Halley AG, he shall be treated as a normal user.

I.12. RESTRICTION OF LIABILITY

(1) Swiss Halley AG shall only be liable for damages other than damages of human life, health, in case Swiss Halley AG, its employees, performance agents caused that directly or with serious negligence, or are a result of a breach of a contractual obligation (e.g. payment of commission). The same shall apply for damages that result from the breach during the negotiations in connection with the Agreement, or damages that result from performing a forbidden act. Above this, the liability to pay damages is excluded.

(2) The liability shall be restricted – except for damages to human life, health, furthermore damages that result from the direct or seriously negligent behavior of Swiss Halley AG, its employees or performance agents – to damages that may typically be foreseeable at the conclusion of the Agreement and regarding its size for average damages that are typical at contracts. The same shall apply to indirect damages, thus to the loss of profit.

(3) The Swiss Halley AG – depending on the type of the damage – shall not be responsible for damages due to data loss in servers, except if it is a result of the direct or seriously negligent behavior of Swiss Halley AG, its employees or performance agents. The stored data content of the distributor are alienated information under the scope of the Swiss telecommunication Act, and legal liability privilege shall be applied.

I.13. TRANSFER OF THE BUSINESS, TRANSFER OF THE SPONSORED STRUCTURE TO THIRD PARTIES, TRANSFER OF THE SHARE IN CASE OF LEGAL ENTITY OR PERSONAL COMPANY

(1) The distributor shall not be entitled to transfer his sales structure, except due to a special reason, having the prior written consent of Swiss Halley AG at disposal – based on the discretion of Swiss Halley AG. Regarding this, Swiss Halley AG is in general entitled to reject a planned transfer at its own discretion.

(2) Distributor (transferor) is entitled to transfer the new user joined directly to them (their so-called front) within the structure below the distributor, directly under another user (recipient) without the consent of the recipient or the transferred user (this is downward front transfer). The transferor has 48 hours after the front's registration to carry out downward front transfer. The recipient party can be a user that has registered in the structure of the transferor distributor or one that has been transferred to the structure of the transferor distributor.

(3) In case the distributor carries out its business activity as a natural person carrying out management activity on a commercial scale but would like to continue distribution in a different form of enterprise, Swiss Halley AG allows the structure created in the distribution network of Swiss Halley AG to be transferred to an enterprise in which the distributor, who is a capable private person, is an owner.

However, in case the distributor sells or transfers their share in this enterprise to another person or company without the permission of Swiss Halley AG, Swiss Halley AG becomes entitled to freely connect the distributor's lower line to the structure of a distributor who is indicated as active, paying attention to the interest of Swiss Halley AG, through this, protecting the business interests of distributors in the structure.

I.14. SEPARATION, DIVORCE

In case a married couple or registered companions as a distributor registered as a legal entity or a personal company terminates the partnership, following the split-up of the partnership or termination by any means, only one distributor position may remain. The divorcing married couple / companions / partners have to agree with each other, which spouse / companion / partner will continue as a distributor, and this shall be announced to Swiss Halley AG in writing. In case the separation, divorce or other type of termination results in a debate regarding the distributor position in Swiss Halley AG, then Swiss Halley AG reserves the right to immediately terminate the Agreement in case, due to the debate, the distributor obligations are neglected, this General Terms and Conditions for Distributors is breached, the effective legal regulations are breached, or the lower line or upper line is disproportionately strained.

I.15. LAPSE

All claims resulting from this contractual relationship shall lapse within 6 months for both parties. The limitation period starts when the claim becomes effective or when the claim is raised or becomes recognizable. The legal provisions, that contain a longer obligatory limitation period, shall remain effective unaltered.

I.16. DATA PROTECTION

(1) Below is the data protection declaration of Swiss Halley AG.

(2) By filling in and submitting the form used for registration and application to become a distributor, the distributor sends personal data to Swiss Halley AG.

(3) Swiss Halley AG uses the personal data (e.g. title, name, address, e-mail address, phone number, fax number, bank account number) sent by the distributor according to the Swiss data protection law, for accounting purposes and for the performance of this Agreement. Accordingly, Swiss Halley AG records, stores and processes only the data provided by the distributor via the online form.

(4) In order to comply with the Agreement (e.g. for shipping or accounting), the personal data of the distributor are forwarded to our cooperating partners or the accounting department in case it is necessary for the performance of the Agreement. The personal data of the distributor are also forwarded to the upper line of the distributor, so that they become be able to invite the distributor for example to certain training events defined in the agreement. These third parties shall be obliged to use the personal data of the distributor according to the Swiss data protection law.

(5) In case it is possible, the distributor may request the modification or blocking of his data via the e-mail address info@fireflies.com, furthermore, he is entitled to forbid Swiss Halley AG to use his data for information forwarding.

(6) Besides the above data protection declaration, the data sent by the distributor to Swiss Halley AG shall not be made accessible to third parties without the express written consent of the distributor, except it is requested by law or authority provisions.

(7) When terminating the Agreement (which termination contains the remuneration settlement according to the provisions of the Agreement), the data of the distributor that needs to be kept due to legal reasons shall be blocked, with the exception of the data the further usage of which is approved by the distributor. These data shall not be used in the future.

(8) In case the distributor requests further information regarding the storage of his personal information or requests the deletion, block or modification of his personal data, he may ask for support on the e-mail address provided in Clause (5).

I.17. WITHDRAWAL OF THE COMPENSATION PLAN, APPROVAL TO PERSONAL DATA FORWARDING

(1) The payment system containing the compensation system, as well, is also part of the Distribution Agreement, it is accepted by the distributor – similarly to the acceptation of the above documents – by the online submission of the application form filled in completely. The distributor always has to observe these provisions in their actually valid versions.

(2) The data protection declaration (see Article I.16) is the expressed part of the present Terms and Conditions for Distributors, and it is accepted by the distributor with the submission of the online application form filled in completely. By sending the completely filled online form the distributor gives his consent that his personal data can be forwarded within Swiss Halley AG or to the direct sponsor line of the business partner.

(3) Swiss Halley AG shall be entitled to modify the payment system and the compensation plan any time. The modifications are reported by Swiss Halley AG on the website – within a proper deadline. In case the distributor does not terminate the Agreement within 14 days after the modification becomes effective, the modification shall be considered as accepted. In case the distributor objects, he is entitled to terminate the Agreement from the date when the modified or additional business conditions enter into effect.

I.18. APPROVAL TO THE USE OF PHOTOGRAPHIC AND AUDIOVISUAL MATERIALS

The distributor entitles Swiss Halley AG without compensation to record photographic and/or audiovisual materials by using their image and the image of their car showed by the distributor at the event organized by Swiss Halley AG, or to make audio recordings of them acting in their capacity as a distributor, and to use or cite their words. However, the distributor, by sending the distributor application and by the acceptance of the present General Terms and Conditions for Distributors, expressly gives his consent that his cited texts, furthermore, recordings of the distributor and his notes can be published, used, multiplied and modified.

Swiss Halley AG provides an opportunity, but is not obliged to do so, where the distributors can show their cars purchased using their income earned at Swiss Halley AG at an event organized by Swiss Halley AG, at a festive ceremony in case the purchased car is of AA category, at least, and was manufactured within at most 4 calendar years preceding the event.

I.19. HANDLING OF WRITTEN QUERIES

The lead time of the investigation providing the basis for the assessment of questions, requests or occurrent complaints received by Swiss Halley AG in writing is 30 days. The competent colleague of Swiss Halley AG sends a notification to the user/distributor about the fact that the answer is created, without delay but within 30 days, at the latest. Questions received in writing are answered in writing in every case. 

I.20. APPLICABLE LAW, COMPETENT COURT

(1) In case Parties do not succeed to settle the occurrent disputes arising between Swiss Halley AG and the distributor through non-judicial channels, the language of legal communication will be English.

(2) The governing law shall be the law of the Swiss Confederation, excluding the United Nations Convention on Contracts for International Sales of Goods. In the event of a legal dispute, the prevailing language of the GTCD is German.

I.21. CLOSING PROVISIONS, ESCAPE CLAUSE

(1) Swiss Halley AG shall be entitled to modify this General Terms and Conditions for Distributors any time. The modifications are published by Swiss Halley AG in the web office of the distributor and on the website www.fireflies.com, by providing proper deadline. The distributor shall be entitled to raise an objection against the modifications. In case the distributor does not object the modified conditions within 14 days after their announcement, then the modifications become part of the Agreement. In case the distributor raises an objection, he shall be entitled to terminate the Agreement as of the date when the modified or additional terms enter into effect.

(2) The modifications and amendments of this General Terms and Conditions for Distributors are valid exclusively in writing. This shall also be applicable to the termination of the provision prescribing the written form.

(3) In case any provision of this General Terms and Conditions for Distributors becomes invalid or is incomplete, it does not result in the invalidity of the whole Agreement, but the invalid or incomplete provision shall be substituted with a provision that is closest to the invalid or incomplete provision from economic point of view and is valid. The same applies to the termination of shortcomings demanding valid regulation.

(4) The information and data available on the website of Swiss Halley AG have been compiled with the utmost care. However, Swiss Halley AG does not assume liability for the possible errors, mistakes, furthermore, errors at data recording and data transfer, at the same time, these possible errors, mistakes, furthermore, errors at data recording and data transfer do not make the affected passage or clause ineffective.

FIREFLIES OPERATION AND COMPENSATION PLAN

II. Products

II.1. Travel packages

II.1.1. Product description

Product name

Content of the product

Product prices*

 

Number of travel voucher(s)**

Travel voucher** validity******
(year(s))

Portal usage (year(s))******

Holiday Coupons (pieces)

Best Price option
(pieces)

Holiday Coupon and Best Price option validity ******

 

Basic***

1

1

1

10

2

5

USD 556

Smart***

3

1

5

30

6

5

USD 1668

Life****

7

2

99*****

70

14

5

USD 3892

*The transaction cost of bank card payment is not included.

** The name of vouchers purchased after December 1, 2014 is Diamond Voucher.

*** The spouse or business partner of the owner of Basic or Smart packages can also use the travel services independently. The spousal or business relationship can be verified by sending the official certificates to the email address info@fireflies.com.

**** Those who purchase Life Package can make reservations for a maximum of 10 persons on the reservation portal and travelers do not have to include the owner of the web office.

***** Those who purchase a Life Package get 92 years of free res ervation portal usage.

****** The starting date of product validity is the date of purchase.

II.1.2. Travel package purchases in stages

(1) Swiss Halley AG provides an opportunity to the user to purchase Basic, Smart or Life travel packages in so-called stages.

(2) Stage: a purchase process consisting of three units. After purchasing the three units, the stage can be considered completed. The user can complete further stages by purchasing further units.

Content of one stage:

 

Diamond Voucher
(pieces)

Holiday Coupon*
(pieces)

Best Price option*
(pieces)

Right to use the reservation portal*

Price**

Unit 1

-

5

1

-

USD 138

Unit 2

-

5

1

-

USD 138

Unit 3

1

-

-

1 year*

USD 280

* The starting date of the product's validity is always the purchase date of the first unit belonging to the stage providing the right.

**Transaction fee of bank card payment not included.

(3) Units can only be purchased in their order, a maximum of one unit can be purchased per calendar month. Simultaneously, only one stage can be completed at one time.

(4) After completing the first stage (that is, purchasing the first three units), the user obtains Basic package rights* in case the purchases of the first and third units are carried out within three calendar months.

In case the purchase of the third unit is carried out after the third calendar month has passed, the products purchased up to that point remain possessed by the user as independent products, however, the stage cannot be considered completed, that is, no Basic package right is created. The completion of the stage necessary for the Basic right can be restarted in the next calendar month by purchasing the first unit of a new stage. In this case, the user will acquire Basic package rights even if the completion of the stage needed for obtaining Basic package rights is carried out in more than three calendar months.

Example: regarding a first unit purchased on March 31, 2017, the user acquires Basic package rights following the purchase of the third unit exclusively if the second unit is purchased in April and the third unit is purchased in May, as well.

In case the third unit is not purchased in May but, outside the three calendar months, in August, for instance, the purchase of the third unit does not create Basic package rights, however, the user takes ownership of the products purchased with the units. The user acquires Basic package rights following the completion of a new stage, this can happen outside the three-month deadline, too.

The 30-month deadline always starts from the month when the very first unit is purchased. Based on the present example, August 2019 is the last month when a unit can be purchased.

After completing the three stages, the user acquires Smart package rights* in case the purchase of the first unit belonging to the first (either completed or not completed) stage and the completion of the third stage is carried out within 30 calendar months. Following the completion of the seventh stage, the user acquires Life package rights* in case the purchase of the first unit belonging to the first (either completed or not completed) stage and the completion of the seventh stage is carried out within 30 calendar months.

In case the purchase of the first unit belonging to the first stage and the completion of the seventh stage is not carried out within 30 calendar months, keeping the level of rights acquired up to that point the user can continue to purchase further units and complete stages, however, by completing a stage, their level of rights does not change but they extend their portal usage validity by one year. Users acquiring Basic or Smart package rights within 30 months, who have not reached any further levels of rights within 30 calendar months, can also acquire Life package rights by purchasing the temporary promotional product, the package upgrade product available with conditions and in periods announced in advance.

* The starting date of the portal usage right validity period is always the purchase date of the first unit belonging to the stage providing the right.

In case the user has a Basic package, one stage can be regarded as completed. In case the user has a Smart package, three stages can be regarded as completed. In case the user has a Life package or has acquired Life package rights through the completion of seven stages, they can purchase further units and they can complete stages, however, a stage completed in this manner does not create new rights but extends the portal usage validity by one year.

(5) Following the purchase of the first unit of stage one, Basic, Smart or Life package cannot be purchased.

Loyalty packages can be purchased right after purchasing the first unit of stage one.

(6) Units can be purchased in the independent menu of phasic purchases, this menu contains detailed statistics concerning the user's phasic purchases. Units can also be paid for using the Travel Balance.

(7) Units can be purchased automatically in case the user requests the automatic purchase of the units (clicks to tick the checkbox) in their web office. In this case, always the next unit is automatically purchased at the soonest time following the first payment of the given month. The automatic purchase of units ends as soon as the user completes the seventh stage or the user removes the tick indicating their request for the automatic purchase of units in the web office. Swiss Halley AG assumes no responsibility for the failure of the automatic unit purchases.

By ticking the automatic purchase of units, the user accepts that the price of the given unit is deducted from their commissions/bonuses released from quarantine, that is, payable to the user.
In case the payable items on the commission balance do not provide adequate coverage for the purchase of the unit, the user consents to the deduction of the outstanding amount from the user's Travel Balance. In case the payable items on the user's commission balance along with their Travel Balance do not provide adequate coverage for the purchase of the unit, the user, by ticking a so-called checkbox when making a payment on Fireflies.com, expressly consents that the value provided by the outstanding amount increased by the transaction cost is settled using their bank card, in the form of the so-called automatic payment renewal.

(8) Extra qualification points for Smart package are credited as the third stage is completed (Smart rights are acquired), whereas, extra qualification points for Life package are credited as the seventh stage is completed (Life rights are acquired).

II.2. Loyalty packages

(1) Loyalty package is a special type of travel package. The name of the various Loyalty packages: Loyalty Standard, Loyalty Plus, Loyalty Professional (hereinafter Loyalty Pro), Loyalty Rapid. Loyalty packages are characterized by the following features:

Product name

Product content

Product price*

Diamond voucher
(pieces)

Holiday Coupon
(pieces)

Best Price option
(pieces)

 

Loyalty Standard

1

10

3

USD 576

Loyalty Plus

3

30

9

USD 1728

Loyalty Pro

7

70

21

USD 4032

Loyalty Rapid***

3

30

9

USD 2112

Product validity****

2 years

5 years

5 years

 

*The transaction cost of bank card payment is not included.

** The validity of unused Holiday Coupons and Best Price options, purchased before November 19, 2016, is also 5 years calculated from the date of purchase.

*** Loyalty Rapid package can be purchased under the menu Loyalty Cycle positions, at the given position, exclusively.

****The beginning of product validity is the day of purchase.

(2) Loyalty packages can exclusively be purchased by users owning a valid Basic, Smart, Life or Business travel package or who have already made at least an unit one purchase concerning a Basic, Smart or Life package.

(3) Loyalty packages can also be purchased from Travel Balance, in part or in full.

(4) Loyalty packages do not create and do not extend portal usage right.

(5) Diamond vouchers, Holiday Coupons and Best Price options purchased in the Loyalty package can be used without portal usage right within the validity period.

(6) Distributor is entitled to receive commission from Loyalty package purchase on the basis of clause III.3.8.

(7) Reservations made with Best Price options do not form the basis for any right to receive commission, they do not create commission and qualification points.

II.3. Best Price Option

(1)  Exclusively in the case of hotel reservation, Best Price option provides a one-time entitlement and opportunity to the user with the following conditions and discounts.

In case the user received the Best Price option directly through package purchase, that is, not through Holiday Coupon conversion, or purchased the Best Price option before February 22, 2017 through package purchase or converted it from a Holiday Coupon before February 22, 2017:

  • The discounted price calculated for Best Price option is independent from the type of valid travel or Loyalty package the user has.
  • The owner of Best Price option can book an accommodation also for another natural person, that is, the owner of Best Price option does not have to be listed among the travelers.
  • In case the owner of the Best Price option books an accommodation for him or herself using the Best Price option, the reservation is made at an 8% discounted price compared to the price available to Life travel package owners.
  • In case the owner of the Best Price option makes an accommodation reservation for another person using the Best Price option, the reservation is made at the price available to Life travel package owners.
    The owner of the Best Price option used for the reservation is entitled to receive a non-commission one-time credit of 8% calculated from the net price of the accommodation reservation reduced by the transaction cost. This amount can exclusively be credited to the commission account. Users without commission accounts are not entitled to receive the above credit. Accommodation reservation quarantine conditions apply to quarantine conditions concerning the credit, while, commission payment conditions apply to payment conditions.

In case the user received the Best Price option through Holiday Coupon conversion, after February 22, 2017:

  • The discounted price applicable when the Best Price option is used is the price available with the valid travel package owned by the user* reduced by 8%. In case the user does not have a valid travel package, the discounted price applicable when the Best Price option is used is the price available with Multi Holiday Coupon* reduced by 8%.
  • The owner of Best Price option can make an accommodation reservation for another natural person exclusively if they have a valid Life package.

*Price excluding transaction fee

(2) Best Price option can be used also in case the user does not have a valid portal usage right at the time the reservation is carried out. Best Price option neither creates, nor overrides any further reservation or other rights related to packages.

(3) Best Price option does not apply to reservations carried out through our strategic partners (e.g. Booking.com).

(4) Best Price option does not apply to hotel reservations carried out partly or in full using vouchers or Holiday Coupons or to those hotel reservations where the payment is not carried out on the reservation portal www.fireflies.com.

(5) Best Price option has a validity of five years, the starting time is the moment at which the Loyalty package containing the Best Price option is purchased, this is presented among the data belonging to the given Best Price option.

(6) The user is entitled any time to convert one valid and unused Best Price option into one Holiday Coupon or one valid and unused Holiday Coupon into one Best Price option. The unused Best Price option or Holiday Coupon converted in the above manner can be re-converted or converted back any time within its validity period.

The validity deadline of the product converted in the above manner once or multiple times is always the same as the validity deadline of the original product, it can be found in the web office, among the data belonging to the given product

Holiday Coupons received through transfer cannot be converted into Best Price options. Holiday Coupons purchased before February 22, 2017 form an exception, these can be converted into Best Price options once.

(7) One Best Price option can be used only once, only one Best Price option can be used per reservation. The Best Price option has to be at the user's disposal at the time of the reservation and it can only be used - online - directly when the travel reservation is made. Best Price options owned by the user only at any later point in time cannot be used subsequently.

(8) Modification and cancellation policies applying to hotel reservations carried out through bank card payment also apply to the reservation made using the Best Price option. In case the hotel reservation can be cancelled free of charge, the user can also re-use the Best Price option with its original expiry date.

(9) Using Best Price option, only non-refundable accommodations can be reserved for periods that exceed the expiry of the Best Price option in case the reservation is made by the user within the validity period of the Best Price option.

(10) The Best Price option cannot be transferred.

(11) The use of Best Price option can be combined with other promotions and discounts exclusively in case it is expressly indicated.

(12) Best Price option cannot be sold or used at auctions, it is especially not permitted to offer the Best Price option for sale on so-called internet auction portals (e.g. eBay). Multiplication and digitization of the Best Price option is also forbidden.

(13) Hotel reservations made using the Best Price option do not grant any right to receive commission, that is, no commission or qualification point is created.

(14) In case the user has at least two types of the Best Price option types purchased before February 22, 2017, purchased after February 22, 2017 or converted from Holiday Coupons and they can use at least two types of Best Price options for the reservation made with the concerned Best Price option, the user is entitled to select the type of Best Price option they would like to use for the reservation in question.

(15) During the reservation carried out by a user who owns more than one Best Price options of the same type, their Best Price option with the earliest expiry date is used.

II.4. Other products

Product name

Product content

Product price*

Multi Holiday Coupon

1 year portal usage + 10 Holiday Coupons

USD 290 / year

Entrance fee for distributors

Right to carry out distributor activity and to receive commission (according to the all-time valid compensation plan) which contains the usage fee of the web office in the first year.

USD 69 / year

Web office usage fee

Right to carry out distributor activity and to receive commission (according to the all-time valid compensation plan)

USD 65 / year

Travel voucher (voucher)

1 travel voucher (voucher)

USD 354 / year

Basic Upgrade package**

The extension of the Basic package purchased earlier into Life
package, conditions are included in the actual announcement

According to the actual announcement**

Smart Upgrade package**

The extension of the Smart package purchased earlier into Life package, conditions are included in the actual announcement

According to the actual announcement**

*The transaction cost of bank card payment is not included.

**Package upgrade is an intermittent promotional product, it can only be purchased according to the previously announced conditions and in the pre-defined period.

II.5. Services connected to the products

 

Services

Web office

Accommodation reservation with bank card/Travel balance

 

 

 

Flight ticket purchase, car rental, ticket purchase for activities, transfer reservation, travel insurance

Travel voucher offers

Holiday Coupon Offers

Travel guides

Hotline

Registration

no

no

no

no

no

no

no

Entry fee for distributors

yes

no

no

no

no

no

yes

Web office usage fee

yes

no

no

no

no

no

yes

Holiday Coupon

no

no

no

no

yes

yes

yes

Multi Holiday Coupon

no

yes, 1 year

no

no

yes

yes

yes

Travel voucher

no

no

no

yes

no

yes

yes

Basic Travel Package

no

yes*, 1 year

no

yes

yes

yes

yes

Smart Travel Package

no

yes*, 5 years

yes

yes

yes

yes

yes

Life Travel Package

no

yes*, 99 years

yes

yes

yes

yes

yes

Loyalty Standard, Loyalty Plus and Loyalty Pro and Loyalty Rapid package.

no

no**

 

 

 

no

yes

yes

yes

yes


*Purchasers of Basic, Smart or Life Packages get a discount from the prices of accommodation reservations, depending on their package, compared to the price of reservations made with Multi Holiday Coupon. This discount is 6.0% for Basic, 10.0% for Smart and 14.1% for Life Package.

This discount does not apply to reservations made through our strategic partners, with Holiday Coupons, with travel vouchers and with Best Price options. Strategic partner: in case such reservations are made, payment is not carried out on the reservation portal www.fireflies.com.

** Best Price options purchased in Loyalty packages are valid for 5 years calculated from the date of purchase. Best Price option provides a one-time discount of 8% from the accommodation reservation price available with Life package in case the user owns any of the travel packages (Basic, Smart or Life). For details see clause II.2.2.

A travel package can be considered valid if its portal usage right is still valid, i.e. the expiry date of portal usage right comes after the examined date.

II.6 The amount of transaction fee

(1) Swiss Halley AG is entitled to charge transaction fee for payments carried out using bank cards.

(2) The transaction fee is defined for each product type as the following percentages:

Product or service purchase

Transaction fee rate

Hotel room reservation, transfer reservation, car rental, ticket purchase for programs, travel insurance.

1.4%

Flight ticket.

3.0%

Multi Holiday Coupon, Basic, Smart and Life package.
Loyalty Standard, Loyalty Plus and Loyalty Pro and Loyalty Rapid package.
Basic and Smart Upgrade package.
Diamond Voucher, entry and web office usage fee.

3.5%

(3) The transaction fee is calculated considering the total amount paid by bank card (including also the transaction fee itself). The amount paid from Travel balance is not subject to transaction fee payment.  

II.7. INFORMATION RELEVANT TO THE RIGHT OF CANCELLATION, EXCLUDING THE RIGHT OF CANCELLATION

(1) Right of cancellation

In case following the registration the user purchases travel voucher, travel or Loyalty package, a unit obtained through phasic purchase, Multi Holiday Coupon, Entry Fee or Web Office Usage Fee from Swiss Halley AG, then he is entitled to ask for a refund of 100% of the purchase price paid for these products, reduced by the bank card fee, in case the user informs Swiss Halley AG within 14 days after the purchase in writing. In case the distributor asks for a 100% refund regarding their first unit acquired through phasic purchase and they do not have a completed stage yet, their Loyalty packages are also refunded automatically and their positions received along with the Loyalty package are also cancelled. In case a distributor with a Loyalty package asks for a 100% refund regarding their travel packages (Basic, Smart, Life packages) or due to any other reason, a 100% refund or chargeback is carried out concerning their travel packages, their Loyalty packages are also automatically refunded and their positions received with the Loyalty package are also withdrawn. (see also clause III.3.8 (11) b. 3-6. of General Terms and Conditions for Distributors.). The written notification can take place via post or via e-mail sent to the address info@fireflies.com. The user is entitled to request the refund of 50% of the purchase price of the above mentioned products (except for the entry and web office usage fee, units obtained through phasic purchase and stages completed through phasic purchase) reduced by the bank card fee later than 14 days but within 6 months after the date of the purchase in writing (via post or via e-mail sent to the address info@fireflies. com). The user accepts that in case he makes a reservation – either refundable or non-refundable – with the purchased travel voucher, Best Price option or Holiday Coupon within 6 months after the purchase, he automatically waives his right of cancellation regardless of whether he later cancels the reservation in question or not. The user also accepts that in case he makes a reservation – either refundable or non-refundable – within 6 months after the purchase of the Multi holiday Coupon, in the section of the booking portal where reservations can be made using bank cards, he automatically waives his right of cancellation regardless of whether he later cancels the reservation in question or not. The user can claim the refund of the mentioned products’ price under the above written conditions only in case the product has not been used either completely or in part. Concerning package products, making reservation on the booking portal and using the voucher in the package, irrespective of the quantity of the vouchers used qualify as using the product in part. Concerning package products, making reservation on the booking portal and using the voucher,  Holiday Coupon or Best Price option in the package in any way, irrespective of the quantity of the products used, also qualify as using the product in part.

The refund can only be requested by the user or distributor who made the payment. Swiss Halley AG can only perform the refund exclusively to the bank card with which the payment was made when purchasing the product.

Furthermore, regarding room reservations, the purchase of flight tickets, transfers, spare time activities and other services sold by Swiss Halley AG, the cancellation conditions of the partners of Swiss Halley AG are valid.

The cancellation shall be sent to the address below:

By post:

Swiss Halley AG
Churerstraße 47
8808 Pfäffikon
Switzerland
Via e-mail:
info@fireflies.com

(2) The consequences of cancellation

a. In the case of a valid cancellation both Parties are obliged to hand over the received services and the possible gains to the other party. In case the services received or the gains (e.g. advantages due to the use) may not or just partly be handed over, or in a damaged condition, then the user is obliged to pay value addition to Swiss Halley AG. This may result, that the contractual payment obligations shall be performed for the period until cancellation. The refund of the paid amounts shall take place within 14 days. This deadline starts on the day when Swiss Halley AG takes over the cancellation declaration of the user.

b. In case a valid cancellation is carried out, the product concerned by the cancellation is deleted from the user account, at the same time, the user loses all of their rights in connection with the product. The user status and the type of user account is modified according to the rights deleted along with the product, in conformity with clause I.3. of GBTC.

(3) Special information

The cancellation right of the user lapses before the deadline, in case the Agreement is performed fully by both Parties and the expressed request of the user was completely performed before the user exercised its right of cancellation.

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

III.1. Description of the uniform commission system, point system

(1) Each product type has different commission content, and the following chart contains the commission percentages and quarantine periods belonging to each product:

Product name

Maximum commission %

Qualification point multiplier

Quarantine

Multi Holiday Coupon

44.4

44.4

14 days from the purchase

Travel voucher (voucher)

28.7

28.7/44.4

14 days from the purchase

Basic Travel Package

44.4

44.4/44.4

14 days from the purchase

Smart Travel Package

44.4

44.4

14 days from the purchase

Life Travel Package

48

48/48

14 days from the purchase

Loyalty Standard package

49

49/49

14 days from the purchase

Loyalty Plus package

49

49/49

14 days from the purchase

Loyalty Pro package

49

49/49

14 days from the purchase

Loyalty Rapid package

49

49/49

14 days from the purchase

Accommodation reservation*, car rental, travel insurance, transfer, tickets for programs

3.9

3.9/44.4

Until midnight on the arrival day defined at reservation

*Except for reservations made through our strategic partners or by using Holiday Coupons or vouchers or Loyalty packages. Concerning reservations made using vouchers or Holiday Coupons, commission content is created at the purchase of the voucher or Holiday Coupon exclusively. Concerning reservations made using vouchers, Holiday Coupons or Best Price options, commission content is created at the purchase of the voucher, Holiday Coupon or Best Price option, exclusively.

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

(2) Swiss Halley AG, during the period open for cancellation (14 days, or midnight on the arrival day defined at reservation) puts the commissions payable for the sale into quarantine, i.e. the commission may not be paid out until the end of the 14th day after the day of the purchase or until midnight on the arrival day defined at reservation.

(3) In the case of the Multi Holiday Coupon, travel voucher, travel or Loyalty package purchases, quarantine terminates 14 days after the purchase, while in the case of hotel reservations, it ends at midnight on the arrival day defined at reservation.

(4) The calculation of the commission payout points always takes place on the basis of purchases released from the quarantine. Qualification points are calculated on the basis of the purchases in quarantine and purchases released from quarantine.

(5) In case, regarding a sale that forms the basis of the commission paid or the qualification points created, a cancellation or a so-called chargeback event occurs, Swiss Halley AG is entitled to withdraw the already paid commission and the generated qualification and travel points entirely on the distributor line contributing to the concerned sale, therefore receiving commission and qualification and travel points through it.

With regard to commission calculation and to the definition of qualification and travel points, the date of cancellation is considered to be the purchase date of the product or service concerned by the cancellation or chargeback event. The deletion date of qualification and travel points is identical with the purchase date of the product or service concerned by the cancellation or chargeback event.

(6) In case these distributors do not possess an appropriate amount of unpaid commission, Swiss Halley AG is entitled to debit its claim on the distributor Travel balance or deduct that amount from the future commission of the concerned distributors.

(7) Reservations carried out using Best Price option do not entail commission entitlement, that is, no commissions and qualification points are created.

III.1.1. Payout points

We calculate the points received after certain payments on the basis of the commission algorithms included in the compensation system. Different bonuses indicate certain types of commissions. In the case of payment, 1 payout point = USD 1.

Examples:

In case a partner directly joined under the distributor purchases a Basic travel package, then direct bonus shall be paid after this transaction, resulting from the package price of USD 556 (without the transaction costs of payment by bank card), furthermore, resulting from the 5% direct bonus and the 1 point multiplier, the distributor receives 27.8 payment points, which will appear as USD 27.8 on their bank account at the time of payment.

After downward front transfer, the purchases of the transferred user or distributor and the structure created under it are exclusively calculated into the commissions of the transferor distributor and their upper line. Thus, concerning commission calculation, the transferred user or distributor is regarded as a user joined directly to the transferor distributor (their front).

III.1.2. Qualification points

The distributors enter the career level on the basis of the total qualification points based on the qualification points accumulated by them and their groups.

The qualification points equal the price of the product according to the compensation plan, multiplied with the qualification multiplier for the concerned product.

Reservations made through our strategic partners (e.g. Booking.com), with Holiday Coupons, with vouchers or with Best Price options do not create commission rights, that is, no commission and no qualification points are created.

There are two types of qualification points: extra qualification point and qualification point. The extra qualification point shall be given to the distributor who purchases a Life or a Smart travel package, in the case of Life package, the number of extra qualification points is 1668, in the case of Smart package, it is 556 qualification points. The number of qualification points of a distributor equals the sum of qualification points earned through the purchases made in his group. Own purchases also count towards the qualification points, unless the given purchase was carried out before January 1, 2017.

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

From now on, by purchasing a Smart package, the user gets one third of the normal qualification points as extra qualification points in addition to the normal amount of qualification points, this is calculated into the distributor’s own qualification points.

Extra qualification points have to be given with Smart packages only if they were purchased after December 1, 2014.

Smart Package extra qualification points: 556.

Based on the example mentioned in the above clause:

In case a partner directly joined under the distributor purchases a Basic package, resulting from this transaction, due to the price of USD 556 (without the transaction costs of payment by bank card) and to the 1 point multiplier, the distributor receives 556 qualification points.

In case a package upgrade is purchased, the extra qualification points for the Life package is also delivered. Simultaneously with the crediting of the qualification points received in the course of package upgrade purchase from SMART package, the qualification points received with the Smart package earlier are deleted.

After downward front transfer, the qualification points generated through the transferred user or distributor and the structure created under it are calculated into the qualification points of the recipient distributor and their upper line. Thus, concerning qualification point calculation, the transferred user or distributor is regarded as a user joined directly to the recipient distributor.

In case a 50% refund is made in connection with a product, all qualification points created through the purchase of the product are deleted (extra qualification points also included).

III.1.3. Commission content of the products and quarantine period

Maximum commission %

Travel Packages 44.4%

Loyalty packages 49%

Travel voucher (voucher) 28.7%

Multi Holiday Coupon 51%

Hotel room reservation,
transfer reservation, car rental, 
ticket purchase for programs, travel insurance 3.9%

 

Name of commission

Percentage value of the commission in the percentage of the value of the purchase

Frequency of calculations

 Quarantine period

Direct bonus

5

3

5*28.7/44.4

5

5* 3.9/44.4

Immediately

14 days

Depth bonus

32

15

32* 28.7/44.4

32

32* 3.9/44.4

Immediately

14 days

Distributor generation

3.3

0

3.3* 28.7/44.4

3.3

3.3* 3.9/44.4

Immediately

14 days

Travel contest

1

1

1*28.7/44.4

1

1*3.9/44.4

Immediately

14 days

Direct travel contest

1

0

1*28.7/44.4

1

1*3.9/44.4

Immediately

14 days

Loyalty Cycle bonus

0

30

0

0

0

Immediately

20 days

Capital share*

2.11

0

2.11*28.7/44.4

2.11

2.11*3.9/44.4

Not defined

Not defined

Alternative allocation**

3,6

0

3,6*28,7/48

3,6

3,6*3,9/48

Immediately

Not defined

Total

48

49

28,7

48

3,9

 

 

* Except for reservations made through our strategic partners (e.g. Booking.com) or by using Holiday Coupons or vouchers or Best Price options. Reservations made in this manner does not form the basis of commission rights, that is, no payment or qualification points are created. Concerning reservations made using vouchers, Holiday Coupons or Best Price options, commission content is created at the purchase of the voucher, Holiday Coupon or Best Price option, exclusively.

** Alternative allocation is created by the 2.0% component set aside for Flash Sales travel offers and the 1.6% component set aside for the activation of bonus positions in the Compensation Plan.

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

The frequency of commission calculation and payment may differ.

Commission is paid every 2 weeks, until 20th and 5th of each month. Only those commissions are paid, where the payment criteria are fulfilled.

III.2 Qualification levels

The qualification 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 to different percentages of the different commission types depending on which career level they are (see III.3 bonuses).

Level name

Conditions

Beginner distributor

distributor status

Travel Member

At least 2000 qualification points have to be possessed (even from their own purchases).

In case a distributor reaches the Travel Member career level, starting from their sponsor, every distributor in their upper-line steps to the Travel Member level up to the first distributor occupying a higher career level than Travel Member.

TM Club**

At least 12,000 qualification points are needed. A maximum of 4,800 qualification points can be considered per line.

In case a distributor reaches the career level TM Club, starting from their sponsor, every distributor in their upper-line steps to TM Club level, up to the first distributor that is on a higher career level than TM Club.

Executive Club

At least 25 000 qualification points have to be possessed. Maximum of 10 000 qualification points can be calculated from each line.

In case a distributor reaches the EC career level, starting from their sponsor, all the distributors in his upper line reach the EC level up until the first distributor the career level of whom is higher than EC.  

Double Executive Club

At least 70 000 qualification points have to be possessed. Maximum of 28 000 qualification points can be calculated from each line.

In case a distributor reaches the DEC career level, starting from their sponsor, all the distributors in his upper line reach the DEC level up until the first distributor the career level of whom is higher than DEC.  

Gold

A minimum of 108 000 qualification points has to be possessed, regardless of the number of lines, but a maximum of 43 200 points per line can be taken into account.

Founder Gold

at least 1-1 Gold on 3 separate lines

Platinum

at least 1-1 Gold on 6 separate lines

Founder Platinum

at least 1-1 Platinum on 3 separate lines or the collection of at least 18* Gold units in the structure

Emerald

at least 1-1 Platinum on 6 separate lines, or a Founder Platinum distributor on 1 line (a maximum of one Founder Platinum or higher-level distributor in itself can substitute for three Platinum distributors with regard to qualification) and 1-1 distributor of at least Platinum level on three separate lines, or at least 36* Gold units in the structure.

Founder Emerald

at least 1-1 distributor of at least Emerald level on 3 separate lines, or at least 108* Gold units in the structure.

Diamond

at least 1-1 Emerald on 6 separate lines, or a Founder Emerald distributor on 1 line (a maximum of one Founder Emerald or higher-level distributor in itself can substitute for three Emerald distributors with regard to qualification) and 1-1 distributor of at least Emerald level on three separate lines, or at least 216* Gold units in the structure.

*Gold unit: theoretical value equivalent to a Gold level distributor while defining career levels. A Gold distributor is equivalent to 1 Gold unit, a Founder Gold distributor equals to 3 Gold units, a Platinum distributor is equivalent to 6 Gold units, however, the Gold unit(s) equaling to solely one, the highest level distributor can be taken into consideration from one line.

**The qualification TM Club is also displayed as Travel Member due to technical reasons. The qualification-related rights and obligations of the distributor with TM Club qualification are the same as those of a distributor of Travel Member qualification, except for Depth Bonus, where the distributor of TM Club qualification has a 5% maximum amount of depth bonus (see also in clause III.3.2. (4)).

In special cases (for instance in case cancellation is made in the distributor’s structure according to clause II.7.) the reached career level can be set back to the previous level. Starting from the date of career level change, the distributor loses their entitlements connected to the previous career level, and their entitlements entailed by the new career level become effective.

Example for point-value-based qualification:

A beginner distributor purchases a SMART package. The sum of the beginner distributor’s qualification points will be 2224, thus, the distributor immediately becomes a Travel Member distributor according to the conditions of point-value-based qualification.

The distributor can reach TM Club level through point-value-based qualification if their group reaches 12 000 qualification points (calculating a maximum of 4 800 points per line).

What should the distributor do to reach TM Club level as soon as possible? They have two options:

  • As soon as at least another 9776 qualification points are created in their group, the distributor steps to TM Club career level according to the conditions of point-value-based qualification.
  • A distributor reaches TM Club career level in the distributor’s structure. In case there is no distributor on that line between the two distributors whose level is higher than TM Club, the distributor reaches TM Club career level immediately.

Example for qualification based on Gold units

A Platinum-level distributor can qualify to reach Founder Platinum level by collecting 18 Gold units in their structure. It is an important condition that, from one line, solely those Gold units can be considered that are calculated from the distributor who is on the highest level. Consequently, it is a condition that has to be met in the case of the distributors in the example below that they should be on separate lines where there is no other distributor who is on a higher level.

The 18 Gold units can be collected through numerous combinations, a few examples:

  • 18 Gold distributors (18x1=18)
  • 6  Founder Gold distributors (6x3=18)
  • 2 Platinum, 1 Founder Gold and 3 Gold distributors (2x6+1x3+3x1=18)
  • 1 Platinum, 2 Founder Gold and 6 Gold distributors (1x6+2x3+6x1=18)

III.3. Bonuses

When creating the compensation plan, the model was the travel package purchase with 44.4% commission content, therefore the percentage values at the description refer to the 44.4% commission content, in case no different information is indicated. The maximum commission percentage for the bonuses regarding the purchase price is determined here, in case of other products the percentages and the qualification point multiplier are calculated on the basis of the percentage rate of the commission content (e.g. in the case of a 3.9% commission content, the commission and the qualification point multiplier is 3.9/44.4%).

In case the amount of the total commission connected to a certain product differs from the 44.4% measure, then the percentage amount of certain commission types is determined based on its proportion compared to the 44.4% commission.

III.3.1. Direct bonus

(1) Fireflies immediately transfers 5% of the net prices – reduced by the transaction fee of the bank card payment – of travel packages (Basic, Smart, Life) and 3% of the net prices – reduced by the transaction fee of the bank card payment – of Loyalty packages (Standard, Plus, Pro, Rapid) to the internal commission point balance of the sponsor, furthermore, commission percentages are also transferred based on the purchase of other products, repurchases (see III.1.3).

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

III.3.2. Depth bonus

(1) Maximum 32% – in the case of Loyalty package purchases, 15% – of the net turnover of the products sold in the distributor’s group may be earned with depth bonus (travel and Loyalty packages, travel vouchers, hotel reservations (except for reservations made using Loyalty packages), Multi Holiday Coupon). 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 on each career level. The distributor is entitled to earn, from the group turnover of the user reaching Distributor level within his group (lower line), the difference between the percentages attributed to them, in case that is larger than zero.

(2) In the case of the Depth bonus it is calculated based on the difference between the commission-based turnover (not all of the products and services have point value, thus not all product and service sales create commissionable turnover) of the group below the distributor and the difference between the qualification levels of the distributor and the distributors below him. The commission of the concerned distributor is the percentage of the total turnover below the distributor belonging to the qualification 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).

(3) Dividing component is defined on the basis of the commissionable turnover in the Platinum or higher level distributor’s group generated by distributors who are on the equal career level, the number of the so-called dividing lines and the number of distributors whose level is the same as that of the concerned distributor. Dividing line: at least Platinum line in the distributor’s group on which there is at least one distributor on the same level as the distributor, and on the given level, between the two distributors of the equal level, there is no distributor who is of higher level than theirs.

 

The value of dividing component (%) regarding the distributor of Platinum or Founder Platinum career level

The number of distributors on the same career level on the same dividing line

1 separate dividing line

on 2 separate dividing lines

1

0.7% on the dividing line and 0.7% on every other line

1.4% on the dividing line and 1.4%  on every other line

2

0.0% on the dividing line and 0.7% on every other line

0.7% on the dividing line and 1.4% on every other line

3 or more

0.0% on the dividing line and 0.7% on every other line

0.0% on the dividing line and 1.4% on every other line

 

The value of dividing component (%) regarding the distributor of Emerald or Founder Emerald career level

The number of distributors on the same career level on the same dividing line

1 separate dividing line

on 2 separate dividing lines

1

0.3% on the dividing line and 0.3% on every other line

0.6% on the dividing line and 0.6%  on every other line

2

0.0% on the dividing line and 0.3% on every other line

0.3% on the dividing line and 0.6% on every other line

3 or more

0.0% on the dividing line and 0.3% on every other line

0.0% on the dividing line and 0.6% on every other line

(4) Depth bonus values

Qualification level of the distributor

Value of depth bonus concerning travel (Basic, Smart, Life) packages, travel vouchers, Multi Holiday Coupons, hotel room reservations, transfer reservations, car rentals, ticket purchases for activities or travel insurance purchases (%)

Value of depth bonus concerning the purchase of Loyalty (Standard, Plus, Pro or Rapid) packages (%)

Travel Member

4%

0%

TM Club

5%

0%

EC

7%

2%

DEC

10%

4%

Gold

16.5%

6%

Founder Gold

21.5%

8%

Platinum

25.5% + a maximum of 1.4% dividing component

10% + a maximum of 1.2% dividing component

Founder Platinum

27.75% + a maximum of 1.4% dividing component

12% + a maximum of 1.2% dividing component

Emerald

30% + a maximum of 0.6% dividing component

14% + a maximum of 0.6% dividing component

Founder Emerald

31% + a maximum of 0.6% dividing component

15%

Diamond

32%

 

III.3.3. Matrix bonus

To distributors contracting Swiss Halley AG before July 22, 2014, matrix completion points created in the period between July 22, 2014 and March 12, 2015 and those created in the course of commission migration in the system of Fireflies are paid when the distributor reaches at least 1550 progress bar filling points calculated from the date of July 22, 2014.

The progress bar is filled from the commissionable turnover of the distributor's group in a way identical to depth commission.

Career

Matrix bonus%

Travel Member

2

EC

3

DEC

5

Gold

7

Founder Gold

10

The progress bar can be filled until 11:59 pm CET on December 31, 2017. From January 1, 2018, the bonus is cancelled, from that date on, neither payments nor partial payments can be made.

III.3.4. 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 qualification level as you. The amount of the bonus depends on the purchases within the group below these members, on the distributor’s qualification level furthermore the number of partners entitled to distributor generation bonus in your team.

(2) The Leader generation bonus is provided above Gold leader level, and is calculated from the turnover generated in the groups of the distributors in the line below the concerned distributor who are on the same or higher level.

(3) The concerned distributor shall be entitled to bonus on the concerned level from the value of the generation turnover levels as follows:

a. 3% of 8% of its generation turnover on the first level
b. 3% of 8% of its generation turnover on the second level
c. 3% of 8% of its generation turnover on the third level
d. 3% of 8% of its generation turnover on the fourth level
e. 3% of 8% of its generation turnover on the fifth level.

(4) A distributor on a given career level can receive bonus down to the following level of generation depth (maximum 5).

Career level

Level of leader generation bonus

Gold

Until the 2nd level

Founder Gold

Until the 3rd level

Platinum

Until the 4th level

Founder Platinum and above

Until the 5th level

The percentage paid per each generation level may be paid from a certain generation turnover only once. In case the concerned percentage 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 of the same level is paid – and the percentage value shall be paid for that. Furthermore the distributor entitled to receive generation bonus shall receive the commission percentage calculated on the basis of the highest possible generation turnover (not paid out yet).

III.3.5. Travel Contest Bonus

(1) The amount of travel bonus is 1% of travel (Basic, Smart and Life) and Loyalty (Standard, Plus, Pro or Rapid) package purchases, concerning the purchase of products that are not packages, it is the percentage of the value of the purchases proportionate to travel package purchases. Travel bonus is collected in a fund from the purchases made by the users (in case of package purchases, it is 1% of the value of the purchase, in case of other products, it is the percentage of the purchase value proportionate to this).

(2) In our system we provide you with the itemized documentation and the record of each transaction concerning travel bonuses calculated for the purchases, furthermore the possibility of monitoring and verification/control of the commissions collected as travel bonus. Regarding travel bonuses the management of quarantine is also provided (that is if a package purchase cancellation is carried out, the travel bonus will be deleted as well.)

(3) A reward trip will be given to Distributors on the basis of the calculation method defined by the cover provided by travel bonus. The payment of the reward trip will be made according to the points below:

a. The reward trip can be paid every 6 months at most, if the necessary conditions for the payment of the trip are satisfied.

b. A maximum of 1+1 persons can participate in the trip.

c. The reward trip will be paid if the total sum of travel points collected by the users (see later) reaches the amount of travel points defined for the actual travel contest.

d. As many trips will be paid as many times the total sum of the travel points collected by the distributors reaches that amount of travel points (e.g. in case 1 500 000 is defined, 3 000 000 travel points result in 2 paid trips. If the total sum of points collected by distributors is less than 1 500 000, then no reward trip is paid.)

e. The reward trips will be paid to the users in the order of the travel points' amount collected by them in the given period (i.e. the first trip will be received by the user who collected the most points and so on).

(4) Travel points

For the payment of this bonus, travel points need to be introduced, the amount of which should be determined by the following method:

a. Travel points are calculated from package sales and package upgrade* sales.

b. Travel points can be credited to distributors for package and upgrade* purchases made in the subtree (group) below them.

c. A distributor can get travel points only in case there is no distributor (including the purchaser distributor) on the same or on a higher career level between the given distributor and the user who makes the purchase (exception to this is the sponsor who will also be entitled to receive the point even if he/she is on the same or on a lower career level than the user who makes the purchase.)

d. The travel points for each package purchase on each level can be seen in the following table (the sponsor of the user who makes the purchase means level 1, the next level is represented by the next authorized user):

Level

Basic, Loyalty Standard

Smart, Loyalty Plus, Loyalty Rapid

Life, Loyalty Pro

Basic upgrade*

Smart upgrade*

Formula

1

1000

3000

7000

6000

4000

x

2

333.333333333

1000

2333.333333333

2000

1333.3333333

x/3

3

111.111111111

333.333333333

777.777777778

666.6666666667

444.444444

x/9

4

37.037037037

111.111111111

259.259259259

222.2222222222

148.148148

x/27

5

12.345679012

37.037037037

86.419753086

74.074074

49.382

x/81

6

4.115226337

12.345679012

28.806584362

24.691358

16.46090

x/243

7

2.057613169

6.172839506

14.403292181

12.34567

8.23045

x/486

8-

0

0

0

0

0

0

Total

1500

4500

10500

9000

6000

x + x/3 + x/9 + x/27 + x/81 + x/243 + x/486 = x*1,5

e. After the 6-month period, the points collected until then get deleted and calculation starts all over again. (E.g. if 1 500 000 travel points is defined as the limit, if users collected 2 999 999 points, only the first user on the list travels and the rest 1 499 999 points will be lost.)

f. At the calculation concerning the reach of the limit of the travel points defined for the travel contest, the maximum payable points are considered and not the actually paid ones (that is 1500 points in the case of a Basic package purchase).

g. Quarantine also has to be handled regarding travel points: the same way as in the case of the payout and qualification points, travel points are quarantined also for 14 days. If the purchase forming the basis of travel points is canceled within 14 days, travel points have to be deleted.

h. The system calculates the travel points created on the basis of the transactions carried out until the end of the given period (until 11:59:59 pm, Bernese time) as part of the points collected by the users in the given point collecting period.

i. The actual state of the point collection will be displayed in the web office distributor by distributor in the form of a top list (TOP200 list).

*Package upgrade is an intermittent promotional product, it can only be purchased according to the previously announced conditions and in the pre-defined period.

(5) After downward front transfer, the travel points generated through the purchases of the transferred user or distributor and the structure created under it are exclusively calculated into the travel points of the transferor distributor and their upper line. Thus, concerning travel point calculation, the transferred user or distributor is regarded as a user joined directly to the transferor distributor.

Example of the calculation of travel points from package purchases:

Example 1: Basic package purchase by a distributor of Travel Member career level. Travel points gathered:

Username

Distributor level

Entitled to travel points?

Which entitlement level?

Number of travel points collected

peter (purchaser)

Travel Member

no

-

-

sergey (sponsor)

EC

yes

1

1000

ladislav

DEC

yes

2

333.333333333

toto

EC

no

-

-

zoe

Travel Member

no

-

-

fred

FG

yes

3

111.111111111

asterix

DEC

no

-

-

drhouse

FP

yes

4

37.037037037

Example 2: purchase of Life package by a DEC user. Travel points gathered:

Username

Distributor level

Entitled to travel points?

Which entitlement level?

Number of travel points collected

peter (purchaser)

DEC

no

-

-

sergey (sponsor)

Travel Member

yes

1

7000

ladislav

EC

no

-

-

toto

Travel Member

no

-

-

zoe

DEC

no

-

-

fred

FG

yes

2

2333.333333333

asterix

DEC

no

-

-

drhouse

FP

yes

3

777.777777778

Example of the calculation of travel points from package upgrade purchases:
Basic Upgrade package purchase by a DEC user.
Travel points gathered:

Username

Distributor level

Entitled to travel points?

Which entitlement level?

Number of travel points collected

peter (purchaser)

DEC

no

-

-

sergey (sponsor)

Travel Member

yes

1

7000

ladislav

EC

no

-

-

toto

Travel Member

no

-

-

zoe

DEC

no

-

-

fred

FG

yes

2

2000

asterix

DEC

no

-

-

drhouse

FP

yes

3

666.6666666667

(6) Within 30 days after the contest ends (including also the release of travel points from the quarantine), Swiss Halley AG sends an email confirmation (using the email address registered on the website of Fireflies.com) to those that are entitled to the prize trip (the winners of the contest). The participation and travel conditions of the prize trip are included in the appendix of General Terms and Conditions for Distributors titled Prize Trip Participation and Travel Conditions (Appendix 4 of GTCD).

III.3.6. DIRECT TRAVEL CONTEST BONUS

(1) The amount of direct travel bonus is 1% of the turnover of package purchases (except for Loyalty package purchases), however in case of purchasing products other than packages, it is the percentage of the value of the purchases proportionate to package purchases. Direct travel bonus is collected in a fund from the purchases made by the users (in case of package purchases**, it is 1% of the value of the purchase, in case of other products, it is the percentage of the purchase value proportionate to this).

(2) In our system we provide you with the itemized documentation and the record of each transaction concerning Direct travel bonuses calculated for the purchases, furthermore the possibility of monitoring and verification/control of the commissions collected as Direct travel bonus. Regarding Direct travel bonuses, the management of quarantine is also provided (that is if a package purchase cancellation is carried out, the direct travel bonus will be deleted as well.)

(3) A reward trip will be given to Distributors on the basis of the calculation method defined by the cover provided by Direct travel bonus. The payment of the reward trip will be made according to the points below:

a. The reward trip can be paid every 6 months at most, if the necessary conditions for the payment of the trip are satisfied.

b. A maximum of 1+1 persons can participate in the trip.

c. The reward trip will be paid if the total sum of Direct travel points collected by the users (see later) reaches the amount of travel points defined for the actual Direct travel contest.

d. As many trips will be paid as many times the total sum of the Direct travel points collected by the distributors reaches that amount of travel points (e.g. in case a 1 500 000 Direct travel points limit is defined, 3 000 000 Direct travel points result in 2 paid trips. If the total sum of Direct travel points collected by distributors is less than 1 500 000, then no reward trip is paid.)

e. The reward trips will be paid to the users in the order of the Direct travel points' amount collected by them in the given period (i.e. the first trip will be received by the user who collected the most points and so on).

(4) Direct Travel points

For the payment of this bonus, Direct travel points need to be introduced, the amount of which should be determined by the following method:

a. Direct travel points are calculated from package sales** and package upgrade* sales.

b. Direct travel points can be credited to distributors for package** and upgrade* purchases made directly below them.

c. The Direct travel points for each package purchase can be seen in the following table: 

 

Basic

Smart

Life

Basic Upgrade

Smart Upgrade

Direct travel points
earned by the sponsor

1000

3000

7000

6000

4000

d. Quarantine also has to be handled regarding Direct travel points: the same way as in the case of the payout and qualification points, Direct travel points are quarantined also for 14 days. If the purchase forming the basis of Direct travel points is canceled within 14 days, Direct travel points have to be deleted.

e. The system calculates the Direct travel points created on the basis of the transactions carried out until the end of the given period (until 11:59:59 pm, Bernese time) as part of the Direct travel points collected by the users in the given point collecting period.

f. The actual state of the point collection will be displayed in the web office.

*Package upgrade is an intermittent promotional product, it can only be purchased according to the previously announced conditions and in the pre-defined period.

** Loyalty package purchases form an exception.

(5) After downward front transfer, the Direct travel points generated through the purchases of the transferred user or distributor are exclusively calculated into the Direct travel points of the transferor distributor. Thus, concerning Direct travel point calculation, the transferred user or distributor is regarded as a user joined directly to the transferor distributor (their front).

(6) One distributor can be in winning position on one list only, at a given time. In case a distributor is among the winners in both travel contests, the distributor’s position in the Direct travel contest is deleted, but they continue to collect their points. In case the distributor loses the winning position later in the travel contest, automatically enters the Direct travel contest again.

(7) Within 30 days after the contest ends (including also the release of travel points from the quarantine), Swiss Halley AG sends an email confirmation (using the email address registered on the website of Fireflies.com) to those that are entitled to the prize trip (the winners of the contest). The participation and travel conditions of the prize trip are included in the appendix of General Terms and Conditions for Distributors titled Prize Trip Participation and Travel Conditions (Appendix 4 of GTCD).

III.3.7. Bonus paid based on the capital

Shall be introduced later

The bonus paid based on the capital is a pool, where, from a date defined later, 2.11% of the turnover forming the basis of the commission calculation will be placed after the bonus is introduced. The payment conditions of the Bonus paid based on the capital is determined by the management of the company.

III.3.8. Loyalty Cycle bonus

(1) General description

a. Loyalty Cycle bonus is a commission paid for the completion of the so-called cycles. Cycles are made of positions created from any Loyalty package purchase and their visually differentiated levels.

b. Exclusively those distributors are entitled to Loyalty Cycle bonus who have a Loyalty Standard, Loyalty Plus, Loyalty Pro or Loyalty Rapid package. The distributor is not entitled to receive bonus payment in case they do not have an active Entry or Web office usage fee. Every position belonging to a distributor who does not have an active entry or web office usage fee has a passive status (see later). After the web office fee is purchased, the distributor’s positions can be regarded as active in terms of distributor rights.

c. Exclusively those users are entitled to purchase Loyalty packages (Standard, Plus, Pro or Rapid) who have a valid Basic, Smart or Life travel package at the moment of the Loyalty package purchase or have already purchased at least one unit through the phasic purchase of these travel packages.

d. Two types of cycle exist in Loyalty Cycle bonus: Small and Big cycle. The two cycles work on the basis of a similar principle, thus hereinafter, the general name „Cycle” refers to both cycles, at the same time, the names „Small cycle” and „Big cycle” will be used in the case of special provisions referring to the given cycle, exclusively.

e. Cycles are made of four levels: you can find one position on the first level, two positions on the second, four on the third level, and the fourth level contains eight positions. At the starting point, the fourth level of every cycle is empty. The creation of the positions on the first three levels and the completion of the fourth level’s empty positions happens according to the rules applying to the given cycle type.

f. A cycle shall be regarded as completed if no empty positions can be found on the fourth level.

g. Completed cycles are immediately rearranged after the completion on the basis of the cycle rearrangement principle applicable to the cycle type. After the cycle rearrangement, the distributor occupying the first level is entitled to Loyalty Cycle bonus, the amount of which depends on the type of the cycle, at the same time, the given position ceases to exist in the given cycle.

h. A cycle is regarded as paid in case the distributor entitled to Loyalty Cycle bonus is determined after the rearrangement of the cycle, regardless of whether the actual payment was made.

i. After the position entitled to the bonus is defined following the cycle arrangement, the Cycle splits into two new Cycles by halving its levels, without changing the order created through the cycle arrangement.
Halving process: the first position of the first level, the first two positions of the second level and the first four positions of the third level creates a new Cycle, and based on the same process, another new Cycle is created by the remaining positions. The lower 8 positions of the two newly created cycles are empty.

j. One position can take part in only one cycle at one time.

k. Inactive position: it does not take part in any cycle and can exclusively be reactivated by purchasing a new Loyalty Standard package.

Passive position: the owner of the position does not have an active entry fee or web office usage fee, consequently, they are not entitled to receive Loyalty Cycle payment. Clause (6) e. regulates the ranking applied to cycle rearrangement, the rank of the passive position is also included.

(2) Small cycle

a. The first level is the visual representation of a Loyalty package purchase containing at least 1 Diamond voucher.

b. In Small cycles, positions can be created in two ways:

- from Loyalty package purchase: 1 new position is created if a Loyalty Standard package is purchased, the purchase of a Loyalty Plus package yields 3, a Loyalty Pro package purchase produces 7 new positions.

- a so-called bonus position created as a result of a Small cycle completion

c. The places of positions can be filled in the following ways:

- With the Loyalty Standard, Loyalty Plus or Loyalty Pro package purchases carried out by the users sponsored by the distributors in the Small cycle (in other words, their directs or fronts).

Based on the Loyalty Standard, Loyalty Plus or Loyalty Pro package purchases carried out in the structure of a distributor in the Big cycle (see later).

Based on the distributors’ new Loyalty Standard, Loyalty Plus or Loyalty Pro package purchases.

- With bonus positions (see later).

d. After the cycle arrangement (see later) carried out following the completion of a Small cycle, the distributor occupying the first level is entitled to USD 500 Loyalty Cycle bonus. After payment, the paid position moves into a Big cycle according to the rules of sponsor succession, furthermore, a Bonus position is created (see later).

(3) Big cycle

a. The Big cycle is the visual representation of the positions which, after receiving payment from the Small cycle, moved into the Big cycle or are placed into the Big Cycle again through Loyalty Rapid package purchase.

b. The empty positions on the fourth level are filled through the Small cycle payments of the distributors in the structure of the Big cycle position owners or by positions placed into the Big Cycle again through Loyalty Rapid package purchases.

c. After the cycle arrangement (see later) carried out following the completion of a Big cycle, the distributor occupying the first level is entitled to USD 5,000 Loyalty Cycle bonus. No income is credited to the Travel Balance from the commission created through Big cycle completion.

d. After payment, the position paid out becomes inactive, it can be reactivated in two ways:

  • Through the purchase of a new Loyalty Standard package. After reactivation, the position is placed into a Small cycle according to the rules of sponsor succession (see later).
  • By purchasing a Loyalty Rapid package, following that, the position becomes active again and restarts immediately in a Big cycle according to the rules of sponsor succession.

(4) Sponsor position

a. Every position, created either from a Loyalty product purchase or from commission payable for a Loyalty product purchase, is connected to a so-called sponsor position. The sponsor position is the position of the sponsor that carried out the placement of the given position, irrespective of whether the process of the placement is automated or manual.

b. In the case of a Loyalty Plus or a Loyalty Pro package, the first position of the concerned package shall be regarded as the sponsor position of the second and third positions. In the case of a Loyalty Pro package, the second position of the given package shall be regarded as the sponsor position of the fourth and fifth positions, while the third position of the given package shall be regarded as the sponsor position of the sixth and seventh positions.

(5) Position placement, sponsor succession

a. In the case of a new user, the position of the first cycle is connected to one of its sponsor’s so-called sponsor position – defined by the sponsor. In case the position gets into a new cycle, the position always gets into the cycle of the sponsor position.

b. In case the status of the sponsor position is passive or inactive, the position gets into the cycle of the sponsor’s sponsor position and the sponsor’s sponsor position also receives the sponsor’s own cycle marking (see later). In case the sponsor’s sponsor position does not take part in the cycle, either, this process is repeated until the first active sponsor position is reached going upward on the sponsor position chain. The same principle is valid also in case the owner of a position’s sponsor position cannot be regarded as a distributor.

c. Sponsor succession: the operation of the position placement and cycle marking placement process defined in clause b. in case a position gets into the cycle.

d. A given distributor can place every user or distributor joined directly to them on their own positions. Own position: position received for the user’s own Loyalty package purchase. The exact number of individual referral links the distributor has equals the number of their own positions.

e. I In case the distributor, for any reason, has not placed the user joined directly to them on either of their own positions, they have 24 hours, following the package purchase made by that user, to place the position. The principle of sponsor succession applies to the positions that have not been placed, that is, those positions does not get into the distributor’s cycle but are placed according to the principle of sponsor succession. Considering the position placed in this manner, it cannot be guaranteed that it gets into the cycle of its sponsor in every case.

Based on the above mentioned, for the distributor’s own good, it is practical and expressly recommended to place all of their fronts.

f. As a result of starred marking placement, the next empty position belonging to the Small cycle where the starred marking has been placed is filled.

g. Regarding sponsor succession, a position can be considered to be a sponsor position only if it has been connected by the sponsor of the position’s owner to one of their own positions.

h. In case the sponsor position of the new Small cycle position is in a Big cycle it forms an exception to the rules of sponsor succession. In this case, the owner of the sponsor position is entitled to place it on any position found in a Small cycle in their structure, within 24 hours. In this case, the Small cycle position, on which its sponsor placed it, also receives the starred marking unless the given position already has two markings.

In case the sponsor does not place the position within 24 hours, after 24 hours, the placement is carried out automatically, according to the following rules:

  • Starred marking is not generated through automatic placement.
  • In case any Small cycle exists where, upon its completion based on the current ranking, the position on the first level of the Small cycle moves into the given Big cycle, the position is placed into that Small cycle. This is the so-called awaiting Small cycle and awaiting position.
  • In case there are more than one such awaiting Small cycles, the position is placed into that Small cycle among them where the fewest empty spaces can be found. In case there are still more such Small cycles, the position is placed into that Small cycle among them, where position was placed with the oldest date.
  • In case there is no such awaiting position, the position waiting for placement is going to be placed into that Small cycle belonging to its sponsor where its sponsor has a position. In case its sponsor has their own positions in multiple Small cycles, the position of the newly connected user is going to be placed into that Small cycle among them where the sponsor’s position is present and the fewest empty spaces can be found in the Small cycle and where a position was placed with the oldest date.
  • In case its sponsor does not have any positions in any of the Small cycles, the position is going to be placed into that Small cycle among the Small cycles of the users connected directly to all of the own positions of the sponsor of the position awaiting placement where the fewest empty spaces can be found and where a position was placed with the oldest date.

(6) General rules of cycle markings and cycle arrangement

a. Every Cycle, in which the distributor has a position, can be seen in the web office of the distributor, presented visually. Definitions in connection with the principle of cycle arrangement are based on this visual form. The basis for the arrangement is provided by the number and type of cycle markings and the type of the position.

b. Cycle marking: placement of a position created from Loyalty package purchase carried out in the course of sponsor succession, in the course of which the owner of the placed position is an active distributor, irrespective of whether the placement happened manually or automatically. With regard to one position placement, only one cycle marking can be placed at a time.

c. Cycle markings of paid positions are deleted.

d. One marking can help only one position to be paid, in one cycle.

e. Cycle arrangement: after the completion of the cycle but before the cycle payment, the positions are rearranged on the basis of the number and type of their markings and the type of the positions themselves, according to the ranking below:

Ranking

Number of own markings

Number of starred markings

1.

2

0

2.

1

1

3.

1

0

4.

0

2

5.

0

1

6.

0

0

7.

Passive bonus position

8.

Passive position

Going from left to right, then from top to bottom, first, positions with ranking 1 are rearranged completing the rearranged cycle also from left to right, then from top to bottom. After this, the rearrangement is carried out placing the positions with ranking 2, then positions with ranking 3 and so on always with the positions coming next in the ranking order. In case the cycle does not have any position with a given ranking, the cycle arrangement is continued with the positions of the next rank.

(7) Special rules of cycle marking and cycle arrangement concerning Small cycles

a. Positions from Loyalty packages and their arrangement

Package

Positions

Marking

Loyalty Standard

1

0

Loyalty Plus

3

2

Loyalty Pro

7

6 (2-2-2)

The actual Loyalty package arrangement can be viewed in the web office.

Example: in case two positions are connected to a given position, the concerned sponsor position has two markings.

b. More than two markings can belong to a position but only a maximum of two cycle markings can be considered (including also starred markings, see below). Among the potential markings, always one's own markings are considered first.

c. In case the distributor already has two cycle markings that are their own, the distributor can place the cycle markings obtained later, from the package purchases of their own fronts or from the reactivation of their own position, on their own further positions or on the positions of their own structure having a maximum of one cycle marking. Cycle markings placed this way are starred markings, the distributor has 48 hours for their placement. In case the distributor does not place the cycle marking within the 48-hour period, it will be automatically placed exclusively at the start of the next Small cycle of the position in case the position has a maximum of one marking, otherwise, the cycle marking cannot be placed in any way later. Starred marking does not influence sponsor succession.

d. In case the distributor’s position already has two cycle markings among which at least one is a starred marking and the given position receives one own cycle marking through the package purchase of their own front, the starred marking – with the earliest date – on the position is deleted and its own cycle marking becomes valid instead. Afterwards, the deleted starred marking cannot be used or transferred.

e. After cycle rearrangement, the distributor occupying the first level is entitled to USD 500 Loyalty Cycle bonus, at the same time, the given position ceases to exist in the given cycle and cycle markings on the given position are also deleted.

f. After the position entitled to the bonus is defined following the cycle arrangement, the cycle is split into two new cycles as its levels are halved without changing the order created in the course of cycle arrangement. Halving process: the first position of the first level, the first two positions of the second level and the first four positions of the third level create a new cycle, based on the same process, the remaining positions create a new cycle. The bottom 8 positions of the two newly created cycles are empty.

g. An inactive or passive position is not entitled to either receive cycle markings or transfer cycle markings while it has an inactive or passive status, and it loses its starred markings already obtained except markings secured by own positions (for instance 6 pcs in case of Loyalty pro package).

h. In case a distributor enters a Small cycle with an active position as a result of Loyalty package purchase later than the distributors located structurally below them, the distributor is not entitled to receive the markings for them since the distributor obtained the active Small cycle position later than the distributors in their structure. Markings are placed according to the principle of sponsor succession in case the sponsor does not have two markings, otherwise, markings are not placed.

E.g. "A" is the sponsor of distributor "B" and distributor "C". "A" enters the Small cycle later than "B" and "C". In such a case, the markings of "B" and "C" are received by the sponsor position in the Small cycle that has a position in the Small cycle [AZ1]. E.g. if the sponsor position of "A" is "Z" and "Z" has a position in the Small cycle [AZ2], then, "Z" receives the markings of "B" and "C" provided that position "Z" does not have two markings yet. In case it has two markings already, it is not entitled to receive these markings either now or later.

Except for the case when a distributor purchases a Loyalty Standard package through automatic re-purchase and they enter a Small cycle with an active position later than the distributors located below them structurally. In this case, the distributor becomes entitled to these markings - already placed through the principle of sponsor succession - from the time of him entering the Small cycle in case no payment was made for the position to which the marking has been already placed based on the principle of sponsor succession.

Automatic re-purchase: after the completion of the Big cycle, the distributor auto-reactivates the position by purchasing a Loyalty Standard package.

E.g. "A" is the sponsor of distributor "B" and distributor "C". "A", following automatic re-purchase, enters the Small cycle later than "B" and "C". In such a case, based on the rules of sponsor succession, the markings of "B" and "C" are received by the sponsor position in the Small cycle that has a position in the cycle. E.g. the sponsor position of "A" is "Z" and "Z" has a position in the Small cycle, then, "Z" receives the markings of "B" and "C" in case "Z" does not have two markings yet, otherwise it is not placed. Following the automatic re-purchase, "A" immediately gets its markings back from "Z" in case no payment has been made to "Z" in this cycle and "Z" also receives a marking from "A".

(8) Special rules of cycle marking and cycle arrangement concerning Big cycles

a. The markings in the Big cycle are created from the fact that positions connected to the given positions are moved into the Big cycle. At the same Big cycle, from a position moved into the Big cycle, marking is created only once.

b. More than two markings can belong to a position but only a maximum of two cycle markings can be considered. Among the potential markings, always one's own markings are considered first.

c. No starred markings are created in the Big cycle.

d. In case the sponsor position of a position moved to a Big cycle is taking part in a Small cycle, the cycle marking created from this is going to be placed on the sponsor position found in the first Big cycle, defined by the principle of sponsor succession. In case the position, found in the Small cycle, left out from the sponsor succession based on the above mentioned, gets into the Big cycle, it immediately regains its place in sponsor succession and cycle markings are placed again on the concerned line in case no payment was made for the affected Big cycle position.

In case no payment was made concerning the Big cycle position in question, the position that has been left out gets all of its markings back by moving into the Big cycle, also in case their number is higher than two. In case the number of markings that are received is more than two, at the ranking, only two markings can be considered, at the web office, only two markings are displayed.

Example: the sponsor position of position „C” moved into the Big cycle is position „B” found in the Small cycle. According to the principle of sponsor succession, the nearest sponsor position found in the Big cycle is position „A”. Position „A” receives the Big cycle marking of position „C”. Before payment is made for position „A”, position „B” also moves into the Big cycle. Then, cycle markings are placed again on the line: position „A” receives the cycle marking from position „B”, and position „B” receives it from position „C”.

(9) Position reactivation

a. The status of the position paid in a Big cycle becomes inactive, it can be reactivated in two ways.

  • After the purchase of a Loyalty Standard package, the position becomes active, again, and according to the rules of sponsor succession, it restarts in a Small cycle.
  • By purchasing a Loyalty Rapid package, following that, the position becomes active again and restarts immediately in a Big cycle according to the rules of sponsor succession.

b. The reactivation can also happen automatically in case the distributor indicates the concerned position in their web office as one that can be auto-reactivated (click to tick a checkbox). In this case, after every Big cycle completion of the position, according to the selected option, a Loyalty Standard package or a Loyalty Rapid package is purchased automatically.

c. By ticking the automatic re-activation option for the concerned position, the distributor accepts that the price of the given package is going to be deducted from the Travel Balance, this means the purchase of a Loyalty Standard package or that of a Loyalty Rapid package. The distributor also agrees that in case the coverage provided by the Travel Balance, released from the quarantine, is non-existent or not enough, the outstanding amount is deducted from the commissions/bonuses released from the quarantine, i.e. payable to the distributor. In case the unquarantined items on the Travel Balance and the commission balance do not cover the reactivation expenses, the outstanding amount is settled using the quarantined items of the Travel Balance and the commission balance.

(10) Bonus positions

a. After the completion of every Small cycle, a so-called bonus position is created, it is quarantined for 480 hours following its creation.

b. After the quarantine period passes, the bonus position is moved into the Small cycle having one empty position. In case more than one such Small cycles are found, the bonus position is moved into that Small cycle where position was placed with the oldest date.

c. In case the Small cycle with one empty position cannot be found, the bonus position is placed into the Small cycle with two empty positions. In case more than one such Small cycles are found, the bonus position is moved into that Small cycle where position was placed with the oldest date.

d. The bonus position cannot be placed into any Small cycles with three or more empty positions.

e. In case no Small cycles with one or two empty positions can be found, the bonus position is not placed until a cycle with one or two empty positions is created. The bonus position is placed into the Small cycle with one or two empty positions created in the above way according to clauses b. and c.

f. There are two types of bonus positions, active and passive.

Only that distributor is entitled to an active bonus position who has at least seven activated (that is, active or passive but not inactive) positions. All bonus positions belonging to a distributor who has fewer than seven activated positions are passive.

At the time when the number of activated positions reaches seven, all of the passive bonus positions the distributor has received so far turn into active bonus positions in case they are found in a cycle at the moment of activation, whereas, the waiting bonus positions become active as soon as they get into a cycle.

Special features of active bonus positions:

  • It takes part in the ranking order as an active position.
  • It can accept markings, gives marking only by getting into the Big cycle.
  • It moves into the Big cycle based on the principle of sponsor succession.
  • It can complete Small and Big cycle, as well, can receive payment.
  • It has an invitation link until the Big cycle is completed.
  • Small cycle completion does not create a new bonus position, after completing the Big cycle, the bonus position cannot be reactivated.

Special features of passive bonus positions:

  • It cannot have cycle markings, cannot receive cycle markings.
  • It has neither a sponsor position, nor an invitation link.
  • It does not take part in sponsor succession.
  • It does not create any product or service rights or commission rights, either.

g. Bonus position is differentiated from other cycle positions by its name. The name consists of two components: [username bonus_#].

  • "Username": the username of the distributor who is entitled to the Small cycle payment generating the given bonus position.
  • "bonus_#": the number of Small cycles completed by the distributor entitled to the Small cycle payment generating the given bonus position.

(11) Special provisions

a. Package purchase

1. Purchasing more Loyalty packages at a time is possible on the opening page of the Loyalty Cycle bonus menu of the Fireflies.com web office, here, only Loyalty Standard package can be purchased.

2. With the help of the checkboxes next to the position, the user can launch a new position, reactivate a paid position. New positions can be launched in their order. Ticking one position results in the purchase of one Loyalty Standard package.

3. Packages are connected to concrete positions, the products can be paid for immediately, without the appearance of the cart page.

4. A distributor can have a maximum of seven positions.

5. The Loyalty package can be purchased immediately after the purchase of the entry fee or another Loyalty package, or simultaneously with it.

6. Loyalty packages can exclusively be purchased by users owning a valid Basic, Smart, Life or Business travel package.

b. Quarantine and refund

1. The amount of Loyalty Cycle bonus remains in quarantine as long as any of the transactions belonging to the concerned position is quarantined or the owner of the position does not have an active entry or web office usage fee. Concerning Loyalty Cycle bonus, the quarantine period is 20 days from the time when Loyalty Cycle bonus is created.

2. In case a 50% refund or any other chargeback event occurs in connection with the Loyalty package purchase, all the positions belonging to that package gain passive status.

3. In case a 100% refund or a chargeback event occurs in connection with a Loyalty package purchase, the following rules apply to all of the positions belonging to that package depending on the characteristics of the given position.

4. In case the position belonging to the concerned package is on the fourth level of the Small cycle, the position is deleted from the Small cycle, an empty space takes its place. The cycle markings gained through the concerned position are also deleted. No other change takes place in the affected Small cycle, the completion of the Small cycle continues according to the rules.

5. In case the concerned position is on the first, second or third level of the Small cycle, USD 62.50 Loyalty Cycle bonus is withdrawn from the last (Small cycle) Loyalty Cycle bonus paid in connection with the given position, exactly as many times as many Small cycle positions took part in the completion of the given Small cycle from the concerned package. Besides, the status of the given position becomes passive and the cycle markings received by the given position are deleted along with the (quarantined) bonus positions created. The given position’s status becomes passive in every cycle completed after the date of withdrawal, with the help of the given position.

6. In case the given position is in the Big cycle, the given position remains in the cycle, however, USD 78.125 is withdrawn from the (Big cycle) Loyalty Cycle bonus paid in connection with the given position, exactly as many times as many Small cycle positions took part in the generation of the given Big cycle position from the concerned package. The status of the given position becomes passive, also retroactively, in every cycle completed after the date of withdrawal, with the help of the given position.

In case a refund or any other chargeback event occurs in connection with all the eight positions needed for the generation of a Big cycle position, the marking it acquired is deleted.

7. In case a distributor with a Loyalty package asks for a 100% refund regarding their travel packages (Basic, Smart, Life packages) or due to any other reason, a 100% refund or chargeback is carried out concerning their travel packages, their Loyalty packages are also automatically refunded and their positions received with the Loyalty package are also withdrawn. (see also clause III.3.8 (11) b. 3-6. of General Terms and Conditions for Distributors.)

c. Invitation link

1. Registration to a distributor, who has any positions in a cycle, cannot be carried out with an invitation link lacking position indicator.

2. The exact number of individual referral links the distributor has equals the number of their own positions.

d. At the start of Loyalty Cycle bonus, the technical positions necessary for the creation of the first Big cycles are the so-called Fireflies Main Positions, they are called "Fireflies Root" positions. In case, in the Big cycle, a Fireflies Main Position can be regarded as the sponsor position of a distributor, after the completion of the Big cycle, the position of the distributor is placed into the Big cycle where a position was placed with the oldest date.

e. Pre-purchase

In certain cases, special rules apply to those who purchased a Loyalty package before the launch of the bonus, these can be found in Appendix 3 of General Terms and Conditions for Distributors (Special Rules Concerning the Pre-purchase of Loyalty packages).

III.4. Distributor travel balance

(1) According to the main rule 10% of any commission calculated and payable to the distributor is credited on the so-called distributor travel balance (except for commissions created through the completion of the Loyalty Big Cycle). The distributor may freely purchase any product or service offered by Swiss Halley AG with the available amounts on the distributor travel balance, except:

- entry fee and web office usage fee;

- reservations made through our strategic partners (e.g. Booking.com, since these are services that are not offered through our own sales channel).

(2) In case the purchase is paid with travel voucher or Holiday Coupon the distributor may use the balance for the payment of the additional amount. 

(3) In case more types of products and services are paid for simultaneously, the amount payable from the travel balance is deducted from the reservation price of travel services, first. The further items in the cart can be paid from the remaining part of the sum used from the travel balance, only subsequently.

(4) In case Swiss Halley AG has outstanding claims against the distributor and in case this claim cannot be settled in any other way, Swiss Halley AG is entitled to debit the travel balance of the distributor with the amount of the claim.

(5) If not specified differently by the distributor in writing, the refund of the prices of unsuccessful or cancelled reservations paid by the distributor shall be made by Swiss Halley AG by crediting the amount to the Travel Balance. In case of reservation cancellation, Swiss Halley AG credits the amount of the price reduced by the bank card fee to the Travel Balance.

(6) In case commission cannot be paid or transferred to the distributor for any reason, the related transfer to the Travel Balance is not carried out, either.

III.5. Special provisions

(1) Between the dates April 3, 2016 and December 19, 2016, Special Distributor Conditions (Appendix 2 of General Terms and Conditions for Distributors) shall apply to distributors having a permanent address in the countries defined in Appendix 1 of General Terms and Conditions for Distributors, concerning clauses III.1.3 and III.3 of General Terms and Conditions for Distributors, exclusively in case all the following four conditions are met:

  1. Basic, Smart or Life package is purchased in the structure of the distributor.
  2. The distributor is a permanent resident in the countries defined in Appendix 1 of General Terms and Conditions for Distributors.
  3. The package purchaser is also a permanent resident in the countries defined in Appendix 1 of General Terms and Conditions for Distributors.
  4. The sponsor of the distributor has chosen Special Distributor Conditions (Appendix 2 of General Terms and Conditions for Distributors) as the governing rules for the distributor, in the course of their invitation to the system of Fireflies, with regard to the activity of the distributor.

Appendix 1 of General Terms and Conditions for Distributors can be downloaded from the Downloads menu of the Fireflies.com web office, while, Special Distributor Conditions (Appendix 2 of General Terms and Conditions for Distributors) is available to the users and distributors of the countries defined in Appendix 1 of General Terms and Conditions for Distributors, in the Downloads menu of the Fireflies.com web office.

(2) Between the dates April 3, 2016 and December 19, 2016, the below maximum commission amounts are available to distributors from countries other than those defined in Appendix 1 of General Terms and Conditions for Distributors from the turnover of distributors in their structure who are from the countries included in the appendix - to whom Special Distributor Conditions (Appendix 2 of General Terms and Conditions for Distributors) apply -, exclusively in case Basic, Smart or Life packages are purchased.

Commission name

Percentage value of the commission in the percentage of the value of the purchase

Frequency of calculations

Direct bonus

5

Immediately

Depth bonus

15

Immediately

Distributor generation

6.3

Immediately

Capital share

0.5

Not defined

Total

26.8

 

(3) After the date December 19, 2016, Amendment to Special Distributor Conditions (Appendix 4 of General Terms and Conditions for Distributors) is effective instead of Special Distributor Conditions (Appendix 2 of General Terms and Conditions for Distributors).

IV. Regulations of commission payment

The payment transaction takes place until the 5th and 20th day of each month via bank transfer. Only those commissions are paid, that are released from the quarantine.

(1) The commission is paid by bank transfer to the bank account provided by the distributor.

(2) Distributor obligations

a. Providing the company data

Distributors, that would like to work in the system of Fireflies as distributors contracted as legal persons or personal associations, are obliged to provide the following data and verify their accuracy.

  • Company name;
  • Company address;
    • Town;
    • Street address;
    • Country;
  • Company registration No.;
  • Taxation No.;
  • Name of company representative;
  • Certificate of incorporation with Apostille certificate;
  • Articles of association with Apostille certificate that contains the distributor as the owner of the enterprise;
  • ePayments account number or international (IBAN) bank account number (in the latter case, the name of the bank managing the account and the SWIFT code are also needed;
  • If the distributor is a private entrepreneur, the number of the entrepreneurial license and its presentation.

The company data are accepted in case the user’s name is listed among the owners of the concerned company, i.e. the user is the sole owner or is one of the owners. The user is obliged to mark the part of the uploaded document, where he is listed as the owner.

Distributor is obliged to send the copies of adequate quality, in digital form (e.g. in pdf, jpg, png file formats) to the email address distributor@swisshalley.com to make the further processing of the necessary documents possible. Payments according to the entrepreneurial status can be applied to the first payment following the moment of the successful processing of the digital copies, at the soonest.

b. Uploading the bank account certification

The distributor shall verify, that the provided bank account is his, or belongs to the company where he is also an owner. Therefore, the distributor 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. Swiss Halley AG issues an invoice about the provided services exclusively to the name of the company indicated as the distributor.

(3) Special commission accounting rules for distributors contracted as legal persons or personal associations

a. In the case of distributors contracted as legal persons or personal associations, the minimum transferable amount is USD 20 (hereinafter: minimum transfer amount). In case the commission of the distributor transferable in a given period reaches the minimum transfer amount, the distributor becomes entitled to receive commission payment.

Calculation of the minimum transfer amount: the amount of commission payable in the given period reduced by the amount transferable to the Travel Balance and by administration expenses (see below).

b. In case the minimum transfer amount is not reached, the commission claim is recorded in the distributor's commission accounting administered at Swiss Halley AG and is paid to the distributor on the first commission payment date following the moment when the minimum transfer amount is reached. In case the minimum transfer amount is not reached, transfer to the Travel Balance is not carried out, either.

c. In case a distributor contracted as a legal person or personal association is entitled to receive commission payment in a given payment period, Swiss Halley AG issues an invoice in the distributor's name, about the commissions payable to the distributor. The content of the invoice:

  • Number (every distributor has an individual range of numbers).
  • The date when the invoice is issued.
  • Payment deadline.
  • Period providing the basis of commission payment.
  • Commission amount and currency.
  • Customer (Swiss Halley AG) name and information.
  • Supplier (the legal person or personal association provided by the distributor) name and information.
  • Other payment information.
  • Value-added tax information

d. In case a distributor contracted as a legal person or a personal association is entitled to receive commission payment in a given period, Swiss Halley AG calculates the following administration costs:

  • Transferring to ePayments account number, USD 20 irrespectively of the transferred amount;
  • transferring to other international bank account number (IBAN), USD 20 + 2% of the transferred amount

Swiss Halley AG issues an invoice about the administration cost, for the distributor, its payment deadline is (for compensation purposes) identical with the payment deadline of the commission balance created in the given payment period (the customer of which is Swiss Halley AG, the supplier is the distributor).

e. Swiss Halley AG can only issue invoices that are in accordance with the Swiss law, in English, these will contain the purchaser data according to the provided profile information. Swiss Halley AG does not assume any responsibility in case this invoice is not in accordance with the tax authority or judicial provisions applying to the distributor.

f. In each period when a distributor contracted as a legal person or personal associations entitled to receive a commission payment, an ad-hoc compensation agreement is made between the distributor and Swiss Halley AG. As the compensation agreement is prepared, Parties mutually acknowledge that they credit the invoices mentioned in the compensation agreement against one another.
Content of the compensation agreement:

  • Compensation clause, in which, Parties mutually acknowledge that they credit the invoices mentioned in the compensation agreement against one another.
  • Date of compensation.
  • ID number of certificates under compensation.
  • Amount and currency of the invoices under compensation.
  • Outstanding amount and currency after compensation.
  • Information about the settlement of the outstanding amount (settlement/payment date and payment method - e.g. ePayments or other bank transfer).

g. In case a distributor contracted as a legal person or a personal association is entitled to receive commission payment in a given payment period, the following certificates are created at the moment of accounting:

  1. Ad-hoc compensation agreement.
  2. Invoice about the commissions (Swiss Halley AG as Customer, Distributor as Supplier).
  3. Invoice about the administration expenses.

h. Compensation, that is, the transfer of the amount of transferable commissions reduced by administration expenses, is carried out based on the clauses of the ad-hoc compensation agreement.

i. The completed certificates can be downloaded from the entrepreneurial data menu of the web office. Under the menus Current/paid-out points, Commission statistics, the entire commission amount continues to be displayed.

(4) If it turns out that any of the transactions mediated by the distributor and connected to the purchase of the product through abuse or fraud, Swiss Halley AG is entitled to take back the commissions paid to the distributor or credited to the distributor’s Travel Balance for the transaction, and to reduce their commission balance.

V. Further provisions, deletion of the distributor

(1) In case a distributor fails to pay the annual web office usage fee necessary for using the web office, after 90 days from the expiry of the entry fee or the web office usage fee, the distributor loses its right to collect distributor commission, following it, they can continue to use the services of Fireflies in the future as a User without distributor rights, at their original place in the structure. With regard to the calculation of the commission payable to their upper-line, they shall be handled as a user. With regard to qualification and qualification point calculation, from the viewpoint of their upper-line, they continue to count as a distributor with qualification.

They cannot get their lower line and other achievements reached as a distributor back later.

For details see clause (4) below.

(2) In case the distributor does not sign in to their web office for more than 365 days, Swiss Halley AG becomes entitled to delete the Travel Balance about which the distributor is informed in an email message. The distributor has 30 days from notification to use the available amount on their Travel Balance.

(3) a. In case the distributor deletes itself, he may not register again for 1 month.

b. Those distributors, who possess entry fee or web office usage fee, may request the deletion of their registration from the support team, and they become inactive distributors for the next 1 month. After the termination of the contract, a new contract can only be concluded once the minimum of 1-month deadline has passed, with the express written permission of Swiss Halley AG. The user can ask for a permission to conclude the contract again, with a request sent to info@fireflies.com, indicating the future sponsor. Swiss Halley AG informs the user in a message sent to the registered email address of the user of whether the request was accepted or rejected. The contract can be concluded again, in case the express written permission is missing, only 6 months after the termination of the contract.

c. Following the deletion of the distributor, or in case a distributor is turned into a user without distributor qualities due to the expiry of their entry fee or annual web office usage fee, before payments can be made, the termination of the quarantine period for the concerned commissions, quarantined until the expiry date of the entry fee or the web office usage fee, has to arrive, thus the below mentioned elements can be paid.

(4) In case the distributor does not pay the annual web office usage fee, necessary for using the web office, within 90 days after the expiry of the entry fee or web office usage fee or requests their deletion or the company excludes the distributor from the system of Fireflies, then:

a. The unused amount on the Travel Balance cannot be paid to the distributor by Swiss Halley AG either via bank transfer or in cash. That is why it is the distributor’s responsibility to use the free amounts on the Travel Balance before deletion. After deletion, Swiss Halley AG cannot exchange the Travel Balance to money payment.

b. In case Swiss Halley AG excludes a distributor, after notification about the exclusion the distributor has 7 days to use the free amounts on the Travel Balance.

c. Swiss Halley AG transfers the commission amount to the distributors, which would be payable to them on the payment date following their deletion. If the distributor also has other, quarantined commission, Swiss Halley AG transfers it to the distributor as the commission is released from the quarantine. Swiss Halley AG can only transfer the commission to the bank account to which it transferred the former commission payments for the distributor.

d. The amount collected as Car bonus is transferred if the distributor is entitled to receive this bonus and has completed the necessary requirements.

e. In case the distributor has a usable travel voucher, Holiday Coupon or Best Price option that has not been transferred to them from another user, he may appoint a user or a distributor, that he intends to transfer these products to.

f. In case he fails to provide a distributor or a user to whom he intends to transfer the unused travel voucher, Holiday Coupon or Best Price option, then, Swiss Halley AG transforms his distributor status into a user profile. Later, this person may use these products as a registered user.

g. In case Swiss Halley AG excludes a distributor, the user will not be able to purchase either web office usage fee or Entry Fee in the future, that is, their distributor status at Swiss Halley AG will be definitively and irrevocably terminated. In case their distributor status is transformed to user status, they continue to be in the structure of the former sponsor as a user. With regard to commission calculation and qualification, payout and qualification point calculation, from the viewpoint of their upper-line, they continue to count as a distributor with qualification.

h. The present document is exclusively available in English in case Fireflies.com is used in the following languages: Croatian, French, Italian, Polish, Portuguese, Serbian, Turkish. When using the website Fireflies.com in Czech, the present document is available in Slovakian, exclusively. Swiss Halley AG assumes no responsibility for the damages and misunderstandings that might occur due to the above mentioned.

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The seat of Fireflies is situated in Pfäffikon, Switzerland, the company cooperates with international supporters from every part of the world: Amsterdam - Antalya - Athens - Auckland - Baku - Bangkok - Barcelona - Beijing - Berlin - Bogotá - Bolzano - Bordeaux - Boston - Brussels - Bucharest - Budapest - Buenos Aires - Cairo - Calgary - Cambridge - Cape Town - Casablanca - Chengdu - Chicago - Colombo - Copenhagen - Denver - Dubai - Dublin - Dusseldorf - Edinburgh - Faro - Fukuoka - Grand Rapids - Guangzhou - Haikou - Helsinki - Heraklion - Ho Chi Minh City - Hong Kong - Honolulu - Houston - Innsbruck - Istanbul - Jakarta - Jeddah - Kiev - Krakow - Kuala Lumpur - Kuta (Bali) - Las Palmas de Gran Canaria - Las Vegas - Lille - Lima - Lisbon - London - Los Angeles - Lyon - Madrid - Málaga - Manchester - Manila - Mexico City - Miami - Milan - Montréal - Moscow - Mumbai - Munich - Natal - New Delhi - New York - Nice - Norwalk - Orlando - Osaka - Oslo - Paris - Phuket - Prague - Rennes - Riga - Rio de Janeiro - Rome - Saint Petersburg - San Francisco - Santiago - Santo Domingo - Sao Paulo - Sapporo - Seattle - Seoul - Shanghai - Siem Reap - Singapore - Sochi - Sofia - Stockholm - Sydney - Taipei - Tallinn - Tbilisi - Tel Aviv - Thessaloníki - Tokyo - Toronto - Vancouver - Venice - Vienna - Warsaw - Zagreb - Zürich

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