Compensation Plan Changes - EN 2023

DIRECTORS 3–9 CRITICAL ACTIVITY BONUS

EARN £/€ 150

EARN £/€ 225

Average of 4 Customers over last 3 months

Average of 2 Customers And GROW*

Enrol an Average of 4 Customers a month over the last 3 months Have an average 90% + Retention of Personals Customers

Have an average 90% + Retention of Personals Customers Develop a new Director or Director 3 over the last 3 months

SENIOR, EXECUTIVE, NATIONAL, CORPORATE, AND PRESIDENTIAL DIRECTORS

SENIOR DIRECTORS £/€ 575 EXECUTIVE DIRECTORS £/€ 2 000 NATIONAL–PRES. DIRECTORS £/€ 4 000

NEW! Enrol an Average of 4 Customers over last 3 months

Enrol an Average of 2 Customers And GROW*

Have an average 90% + Retention of Personals Customers Develop a New Director or Director 4–Senior Director over the last 3 months

TIER TWO

SENIOR DIRECTORS £/€ 850 EXECUTIVE DIRECTORS £/€ 3 300 NATIONAL–PRES. DIRECTORS £/€ 6 000

NEW! Enrol an Average of 4 Customers over last 3 months

Enrol an Average of 2 Customers And GROW*

Have an average 90% + Retention of Personals Customers Develop a New Director 3 over the last 3 months

*increase the total Preferred Customers in your organisation over the previous month OR increase your total number of Personally Enrolled Preferred Customers over the previous month

PACESETTER PROGRAM ENHANCEMENTS

Effective March 1st, the Pacesetter time frame has been adjusted by moving the extra month to give Directors 3 two months to advance to Director 4 and removes a month between Director 9 and Senior Director.

Advancement Bonus

Time Frame (months)

Status

Pacesetter

£/€ 200

Director

£/€ 100

1–2

£/€ 400

Director 2

£/€ 200

£/€ 1 000

Director 3

£/€ 500

£/€ 1 000

5-6 5-6

Director 4

£/€ 500

£/€ 1 000

Director 5

£/€ 500

£/€ 1 200

Director 6

£/€ 600

£/€ 1 400

Director 7

£/€ 700

£/€ 1 600

Director 8

£/€ 800

£/€ 2 000

Director 9

£/€ 1 000

£/€ 4 000

Senior Director

£/€ 2 000

£/€ 13 800

£/€ 6 900

MARCH 2023 COMPENSATION PLAN ENHANCEMENTS PACESETTER PROGRAM Frequently Asked Questions

How has the Pacesetter Program qualification timeline changed?

A Marketing Executives now have 2 months to advance from Director 3 to Director 4 and 1 month to advance from Director 9 to Senior Director. Q Why did Melaleuca change the Pacesetter schedule? A Advancing from Director 3 to Director 4 requires you to double your Organisation Volume and develop a second personally enrolled Director, so having one additional month will increase the number advancing on Pacesetter schedule. Q Will the change in the Pacesetter schedule negatively affect those currently at Director 3 or above status? A No. The Pacesetter schedule continues to require a Marketing Executive to advance to Senior Director 12 months after enrollment, so no one will be negatively impacted by this change to the schedule.

CRITICAL ACTIVITY BONUS For DIRECTOR 3 – DIRECTOR 9 Frequently Asked Questions

Q A

How do I qualify for the Director 3 – Director 9 Critical Activity Bonus?

Tier 1 – Earn £/€ 150: Effective March 2023, Commission Rate Directors 3 – Directors 9 may qualify for an additional £/€ 150 per month by: 1) Having a 3-month average of 4 new personally enrolled Preferred Customers per month. 2) Having a 3-month average personal customer retention rate of 90% or higher. Tier 2 – Earn £/€ 225: Effective March 2023, Commission Rate Directors 3 – Directors 9 may qualify for an additional £/€ 225 per month by: 1) Having a 3-month average of 4 new personally enrolled Preferred Customers per month OR Having a 3-month average of 2 new personally enrolled Preferred Customers AND growing their Organisation or number of non-inherited personal customers by at least one. 2) Developing at least one new personally enrolled Director or Director 3 over the past 3 months. 3) Having a 3-month average personal customer retention rate of 90% or higher. Q To meet the average for the ‘enrol 4’ requirement, do I need to enrol 4 every month? A No. It simply must be an average of 4 or a total of 12 new Preferred Customers over the last 3 months. Q If I didn’t enroll 4 in January or February, can I still qualify for the Critical Activity Bonus in March? A Yes! In this case, to reach the average of 4, you’ll need a total of 12 Preferred Customer enrolments in the last 3 months. Simply subtract your January and February enrolments from 12 and that’s how many you’ll need to enrol in March to qualify this month! Remember, you’ll also need an average 3-month retention rate of 90% or more of your personally enrolled Customers. Q For the ‘enrol an average of 2 or 4’ requirement, do all Customers need to remain Preferred for all three months? A No. As long as you have a 3-month average of either 2 or 4, you will meet that qualification regardless of how long they remained Preferred; but remember you must also meet the other criteria including a 3- month retention rate of 90% or more of your personally enrolled Customers.

How is the personal customer retention calculated?

A It is a 3-month average of the monthly retention rate of your personally enrolled Customers. Any inherited Customers are excluded from this calculation.

Here is an example:

January 2023

February 2023

March 2023

Beginning Personally Enrolled Preferred Customers Personal Customers that cancelled Personally Enrolled Customers that are still Preferred Personal Customer Retention Rate 3-Month Personal Customer Retention Rate

117

120

114

(6)

(10) 110

(7)

111

107

94.9%

91.7%

93.9% 93.5%

Q Is there a requirement for my new personal Director or Director 3 to hold Status? A Yes. Your personal Director or Director 3 must retain their Status of Director or Director 3 in each month you qualify to receive the bonus. For example, if you helped John (a personally enrolled Customer) to advance to Director status in February, John needs to be at Commission Rate Director or above in March for you to qualify for the Critical Activity Bonus in March (unless you develop another new Director or Director 3 in March). In this same example, if John advances to Director in February, but is unable to maintain that Status and becomes a Commission Rate Product Advocate 3 in March, then regains Director status in April, he will qualify as your new Director in February and April. The calculation simply looks to see if you’ve developed a Director or Director 3 in the past 3 months, and as long as their Commission Rate is equal or greater in the current month, you will meet that qualification. Q Can the same personal enrollee help me to qualify when they advance to Director and again when they advance to Director 3? A Yes! Your new Director could meet the qualification as a new Director for 3 months, and when they advance to Director 3, they can help you qualify for another 3 months. The calculation simply looks to see if you’ve developed a Director or Director 3 in the past 3 months, and as long as their Commission Rate is equal or greater in the current month, you will meet that qualification.

Q Can I receive the Critical Activity Bonus in any of my first two months at Melaleuca? A No. Marketing Executives can qualify for the Critical Activity Bonus beginning in their third month.

CRITICAL ACTIVITY BONUS ENHANCEMENTS for SENIOR, EXECUTIVE, NATIONAL, CORPORATE, & PRESIDENTIAL DIRECTORS Frequently Asked Questions Q Who is eligible to participate in the Critical Activity Bonus? A You must be a Commission Rate Senior, Executive, National, Corporate, or Presidential Director to earn the Critical Activity Bonus. Q How do I qualify for the Critical Activity Bonus? A Tier 1: Effective March 2023, Marketing Executives may qualify for the Critical Activity Bonus by: 1) Having a 3-month average of 4 new personally enrolled Preferred Customers per month OR Having a 3-month average of 2 new personally enrolled Preferred Customers AND growing their Organisation or number of non-inherited personal customers by at least one. 2) Developing a new personally enrolled customer to one of the following new high statuses over the past 3 months: a. Director b. Director 4 through Senior Director 3) Having an average 3-month personal retention rate of 90% or higher. Tier 2: Effective March 2023, Marketing Executives may qualify for the Critical Activity Bonus by: 1) Having a 3-month average of 4 new personally enrolled Preferred Customers per month OR Having a 3-month average of 2 new personally enrolled Preferred Customers AND growing their

Organisation or number of non-inherited personal customers by at least one. 2) Developing a new personally enrolled Director 3 over the past 3 months. 3) Having a 3-month average personal retention rate of 90% or higher.

Q A

How much are the bonuses?

Develop a new Director or a Director 4 through Senior Director

Develop a Director 3 £/€ 850 £/€ 3300

Commission Rate

£/€ 575 £/€ 2000

Senior Director

Executive Director National, Corporate, & Presidential Directors

£/€ 4000

£/€ 6000

Q To meet the average for the ‘enrol 4’ requirement, do I need to enrol 4 every month? A No. It simply must be an average of 4 or a total of 12 new Preferred Customers over the last 3 months. Q If I didn’t enrol 4 in January or February, can I still qualify for the Critical Activity Bonus in March? A Yes! In this case, to reach the average of 4, you’ll need a total of 12 Preferred Customer enrolments in the last 3 months. Simply subtract your January and February enrolments from 12 and that’s how many you’ll need to enrol in March to qualify this month! Remember, you’ll also need an average 3-month retention rate of 90% or more of your personally enrolled Customers. Q For the ‘enroll an average of 2 or 4’ requirement, do all Customers need to remain Preferred for all three months? A No. As long as you have a 3-month average of either 2 or 4, you will meet that qualification regardless of how long they remained Preferred; but remember you must also meet the other criteria including a 3- month retention rate of 90% or more of your personally enrolled Customers. Q How is the personal customer retention calculated? A It is a 3-month average of the monthly retention rate of your personally enrolled Customers. Any inherited Customers are excluded from this calculation.

Here is an example:

January 2023

February 2023

March 2023

117

120

114

(6)

(10) 110

(7)

111

107

94.9%

91.7%

93.9% 93.5%

Q Is there a requirement for my new personal Director or Director 3 to hold Status? A Yes. Your personal Director or Director 3 must retain their Status of Director or Director 3 in each month you qualify to receive the bonus. For example, if you helped John (a personally enrolled Customer) to advance to Director status in February, John needs to be at Commission Rate Director or above in March in order for you to qualify for the Critical Activity Bonus in March (unless you develop another new Director or Director 3 in March). In this same example, if John advances to Director in February, but is unable to maintain that Status and becomes a Commission Rate Product Advocate 3 in March, then regains Director status in April, he would qualify as your new Director in February and April. The calculation simply looks to see if you’ve developed a Director or Director 3 in the past 3 months, and as long as their Commission Rate is equal or greater in the current month, you will meet that qualification. Q Is there a requirement for my personal Director-Director 3, who advanced to a new high status of Director 4 to Senior Director, to hold Status? A Yes. Your newly advanced Director 4- Senior Director must retain their new High Status of Director 4, D5, D6, D7, D8, D9 or Senior Director in each month you qualify to receive the bonus. For example, if you helped John (a personally enrolled Director 5) to advance to Director 6 status in February, John needs to be at Commission Rate Director 6 or above in March in order for you to qualify

for the Critical Activity Bonus in March (unless you develop another new Director or Director 3 in March). In this same example, if John advances to Director 6 in February, but is unable to maintain that Status and becomes a Commission Rate Director 5 in March, then regains Director 6 Commission Rate in April, he will qualify as your new Director 6 in February and April. The calculation simply looks to see if you’ve developed a newly advanced High Status Director 4-Senior Director in the past 3 months, and as long as their Commission Rate is equal or greater, to that new high status, in the current month, you will meet that qualification. Q Can the same personal enrollee help me to qualify when they advance to Director and later when they advance to Director 3 or higher? A Yes! Your new Director could meet the qualification as a new Director for 3 months, and when they advance to Director 3, they can help you qualify for another 3 months, and so on. The calculation simply looks to see if you’ve developed a Director or Director 4 – Senior Director in the past 3 months for the first tier or Director 3 in the past 3 months for the Tier 2, and as long as their Commission Rate is equal or greater in the current month, you will meet that qualification. Q Can I receive the Critical Activity Bonus in any of my first two months at Melaleuca? A No. Marketing Executives can qualify for the Critical Activity Bonus beginning in their third month. Q Will I earn the bonus associated with my Status or my Commission Rate? A You will earn the bonus that corresponds with your Commission Rate. All compensation to Marketing Executives is based on the sale of products to end consumers. All bonuses are designed to reward the producer based on the premise of real customers buying real product they really want. Any effort to gift enrollments, pay for orders, manipulate volume, or any other manipulation to qualify for this bonus will not be tolerated and may result in immediate and permanent disqualification of this bonus and potentially all bonuses and compensation. All other policies must be adhered to. This bonus and this document are subject to Melaleuca’s sole interpretation.

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