Compensation Plan Changes - EN 2023

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

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 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

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