Glossary of terms

Tiscali, Tiscali Network and the Company - Tiscali Network Distribution Limited - a wholly-owned company of Tiscali UK Limited, the parent company being Tiscali SpA. Customer Products and Services - The communication services provided by Tiscali (and any other products or services deemed appropriate by the company) to customers to generate billable revenue. Broadband - The high-speed internet access service that uses a conventional phone line yet allows access to email and the web at speeds up to 40 times faster than dial-up. Dial-up - The traditional method to access the internet using a dial-up modem connection on a standard phone line. Tiscali Talk - Tiscali's low-cost telephone service. Tiscali TV - Tiscali's digital TV and Radio service supplied via your telephone line. CPS - Carrier Pre-Select. The term given to the way in which a customer can access a carrier company like Tiscali and enjoy the low cost phone calls without the need to dial any special prefix numbers or use any special equipment. Customer Agreement - The formal Agreement a Customer undertakes when registering for one of Tiscali's services. Registration can be very easy using a 'paperless' method either over the internet or phone. Active Customer - A customer who has been accepted and activated for one of the Tiscali services and which, in subsequent months, that customer shows a billed revenue for usage of those services. IBA - Independent Business Associate. The formal name for each individual who has chosen to register with the Tiscali Network business opportunity IBA Application and Agreement Form - The form required to be completed by all prospective IBAs which, upon acceptance by the company, allows the new IBA to participate in the Tiscali Network for 12 months from date of registration. This form must be signed and returned in order for Tiscali Network to pay commissions. Annual Administration Fee - An optional annual amount paid by the IBA or IBM after 12 months to maintain their status as an IBA or IBM. IBA Renewal – Each IBA on the anniversary they joined Tiscali Network will have to follow a quick renewal process online for FREE to maintain their status as an IBA. Active IBA - An IBA remains 'active' for 12 months from the date of their registration being accepted by the company. Thereafter an 'active' IBA is someone who has maintained their Associate position by ensuring they follow the IBA renewal process AND they have met the 'Activity Requirement' detailed in the current Pay Plan. Active Customer Product - A Customer Product is considered to have gone 'active' when the service is live on the customers telephone line. Inactive status - An IBA who has not maintained their 'Active IBA' status. Personal 3x7 Matrix - The term used to describe the shape of the structure built beneath a new IBA by their individual sponsoring efforts and those IBAs in their Team. Each IBA has a limiting number of IBAs they can have on that specific level. The Matrix allows an IBA to only have 3 IBAs either personally sponsored or spilled on their 1st Level; 9 on the second, 27 on the third and so on, and this is built and pays commissions upto 7 eligible generations of IBAs, hence the name 3x7 Matrix. Matching 3x7 Matrix - This is the 3x7 Matrix that develops underneath a personally-sponsored IBA. This Matching 3x7 Matrix may fall within a sponsoring IBA's Personal 3x7 Matrix or may fall outside of it, if the IBAs Personal 3x7 Matrix is complete. Spill - When an IBA has personally sponsored more than 3 IBAs, they then start to 'spill' the 4th and subsequent personally-sponsored IBAs in to the lower levels of their Matrix, spilling IBAs into the Matrix of other IBAs. Eligibility - The term used to define whether an IBA should be paid a specific Bonus or Commission. Though the IBA may have earnt a Bonus or Commission, they must have met certain criteria (termed 'eligibility') themselves to allow them to be 'eligible' to receive it (see specifics of the Pay Plan). Customer Qualified - For an IBA to be placed in the Matrix and have the opportunity to earn Residual Commission they must register a minimum of 3 customer products within 30 days from initial date of joining Tiscali Network. Once achieved they are 'Customer Qualified' Level - A Level is counted as to the exact place an IBA is positioned in the Matrix according to when they enter the Matrix by becoming 'Customer Qualified'. Levels are static and do not change from month-to-month. Eligible Generation - An IBA in the matrix who has achieved 'matrix-eligibility' for that month is deemed as an 'eligible generation' to which a Matrix-Eligible IBA can potentially earn Residual Commission upto 7 'eligible generations' including all the levels in between (see Dynamic Compression). Eligible Generations are variable and do change month-to-month dependant on which IBAs are Matrix-Eligible. Residual Commission - This commission is calculated and paid on a monthly basis (approximately around the 15th of each month) to all qualified IBAs and is based on the monthly Customer Products Revenue as defined below and is calculated at 0.75% residual commission on all your Customer Products Revenue (and your Team's Customer Products Revenue ) down a certain number of generations determined by your career level. Matching Residual Commission - - In addition to earning 0.75% residual commission on the Customer Products Revenue in your Team, IBA's can earn this again from their personally sponsored IBA's Customer Products Revenue. The Matrix will find all the IBA's you have personally sponsored from Bronze to Diamond and pay you 0.75% residual commission down a number of generations determined by YOUR career level entitlement. Customer Product Eligible Customer Products are found at www.tiscali-network.com. Customer Products Revenue means revenue billed, paid and received by Tiscali from Customer Products. Dynamic Compression - This occurs when an IBA on a certain Level does not qualify for Residual Commission by not being Matrix-Eligible and so they are not counted as an Eligible Generation, yet that IBA may have Customers who have generated Customer Product Revenue. This revenue, and subsequently any commission due on that revenue, is rolled up or 'compressed' in to the Eligible Generation above. This means, though an IBA can be paid upto 7 Eligible Generations, they could in fact be paid on unlimited Levels of IBAs and their Customers.