TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES

12 Months Ended

Dec. 31, 2016

TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES

The Company made cash donations of $0.6 million and $0.9 million to the M5M Foundation for the year ended December 31, 2016 and December 31, 2015, respectively. The M5M Foundation is a 501(c)(3) charitable organization that works to combat the epidemic of childhood malnutrition on a global scale. Several of the Company’s directors and officers and their family members serve on the board of the M5M Foundation, including:


•	Al Bala, the Company’s President;


•	Chris Simons, the Company’s Regional Vice President EMEA/North America;


•	Landen Fredrick, Senior Vice President, Global Operations and son of J. Stanley Fredrick, the Company’s Chairman of the Board and a major shareholder; and


•	Lorrie Fry, the daughter of Larry Jobe (a member of our Board).

We paid employment compensation of approximately $293,500 in 2016 and $251,000 in 2015 for salary, bonus, auto allowance, and other compensation to Landen Fredrick. Landen Fredrick is the son of J. Stanley Fredrick, the Company’s Chairman of the Board and a major shareholder. In addition, Landen Fredrick participated in the employee health care benefit plans available to all employees of the Company. Landen Fredrick has served as Senior Vice President, Global Operations since August of 2016. Prior to that, Mr. Fredrick served as Senior Vice President, Supply Chain and IT since August of 2015, Vice President, Global Operations since May of 2013, Vice President, North American Sales and Operations since January of 2011, Vice President, North American Sales since February of 2010 and as Senior Director of Tools and Training since his hire in May of 2006. Landen Fredrick also serves on the Board of the M5M Foundation.

Mr. Ray Robbins is a major shareholder and served as a member of the Company's Board of Directors until December of 2016. Mr. Robbins holds positions in the Company’s associate global downline network marketing system. In addition, several of Mr. Robbins’ family members are independent associates. The Company pays commissions and incentives to its independent associates and during 2016 and 2015, the Company paid aggregate commissions and incentives to Mr. Robbins and his family of approximately $2.9 million and $3.2 million, respectively. The aggregate amount of commissions and incentives paid to Mr. Robbins was approximately $2.7 million and $2.9 million in 2016 and 2015, respectively. The aggregate amount of commission and incentives paid to family members was approximately $0.2 million and $0.3 million in 2016 and 2015, of which $0.2 million was paid each year to his son, Kevin Robbins, who is a member of the Company's Board of Directors and serves on the Science and Marketing Committee and is consulting on the associate commission plan. In addition, less than $0.1 million and $0.1 million in 2016 and 2015, respectively, was paid to his daughter, Marla Finley, and daughter-in-law, Demra Robbins, who both share an account. All commissions and incentives paid to Mr. Robbins and his family members are in accordance with the Company’s global associate career and compensation plan. The Company has also contracted with a software development firm owned by Ryan Robbins, the son of Mr. Ray Robbins. The value of services performed during each of 2016 and 2015 were less than $0.1 million.

Johanna Bala, the wife of Al Bala, the Company’s Chief Executive Officer and President, is an independent associate who earns commissions and incentives. The aggregate amount of commission and incentives paid to Johanna Bala was approximately $0.1 million and $0.2 million in 2016 and 2015, respectively.