Compensation - PLAN GUIDE

Compensation - PLAN GUIDE

Compensation - PLAN GUIDE

Compensation PLAN GUIDE July ,2015

Compensation - PLAN GUIDE

Our Compensation Plan is customer focused and consumption driven. We are able to do this as we offer a consumable household product that almost everyone already purchases. Our VIP Customer program provides our Market Partners with a unique sales tool that creates exciting earning potential from retail commissions on this leading edge product line. Whether our Market Partners are signing up Retail Customers or VIP Customers, our Compensation plan provides extremely lucrative earning opportunities. MONAT Global Canada ULC is a uniquely positioned company of fering innovative and creative hair care products that allow our Market Partners to capitalize on the multibillion dollar hair care market.

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Compensation - PLAN GUIDE

Sales Commisions YOU Sponsor & Develop Advancement Bonuses Up to $ 25,000 $200-$600 + MATCHING BONUSES Builder Bonus PLATINUM / 3+3 $400 + $800 = $1,200 SILVER / 3+1 $200 + $400 = $600 VIP & Retail Customers Sales 15% SALES COMMISION 30% RETAIL SALES COMMISION UP TO 40% 7-12% UNILEVEL BONUS FOR MENTORING* 4% GENERATION BONUS THROUGH 5 GENERATIONS* 5% NETWORK BONUS (IN ADDITION TO LEVEL COMMISSIONS) FOR FIRST 3 MONTHS* TO EARN 5ways W I T H M O N A T DARE TO SUCCEED $120 or $150 FAST START BONUS; PLUS ONE TIME $200 FAST BUILDER BONUS We have created a building block approach to our Market Partner’s organizational development.

Within these building blocks are milestones and goals that have the potential to create substantial bonuses and increased opportunities for our Market Partners as they progress through our system.

The Platinum and Silver bonuses are paid on the very simple “3+3” and “3+1” models respectively. We believe that it is extremely important to pay our Market Partners regularly. As a Market Partner, you should be rewarded quickly and frequently for your efforts because greater earning opportunities are available when you yourself are excited about the products and have the resources available to motivate and equip your own team with the tools they need for continued success. Our philosophy is one of gratitude, and we have always known that we thrive as a company by creating opportunities and helping our Partners succeed.

Finally, in addition to very solid generational pay, MONAT is pleased to have created more earning potential through two Bonus Pools: 1. The Founder’s Pool 2. The Consistency Pool These pools were created to inspire our leaders to both “get in early” and to maintain consistent habits on an ongoing basis. We are proud of this compensation plan and are eager to see the impact it will have on our Market Partners’ lives! The Compensation Plan *Paid on Comissionable volume CV 2 CANADA

Compensation - PLAN GUIDE

THE MARKET PARTNER ADVANCEMENT PATH Titles and Qualifications MARKET PARTNER As a savvy and forward thinking Market Partner, you are able to look ahead and recognize this phase as a time to build and refine the foundational skills of your success: selling and sponsoring.

You thrive on the knowledge that you are creating your own future, and you eagerly learn from your sponsor and mentors as you work towards success and greater opportunities. Success and the life you’ve envisioned for yourself are now within your reach. You possess within you the passion and commitment to create your own destiny. With MONAT, you have the means to empower and enrich your life as you follow the Market Partner Advancement Path and successfully progress from Market Partner to Market Mentor, working towards ultimately earning the title of Executive Director.

MARKET BUILDER You have the experience, understanding and drive to move forward and share your knowledge with other Market Partners.. You are eager and prepared to step into the role of Market Builder. With the support of your upline, your enthusiasm and knowledge guides the Market Partners in your Success Lines to discover their own success. Partners: Selling and Sponsoring Builders: Building Partners AMP ASSOCIATE MARKET PARTNER 200 PV 1 Active Line LMP LEAD MARKET PARTNER 250 PV 2 Active Lines MMP MANAGING MARKET PARTNER 300 PV 2 Active Lines 1,200 GV AMB ASSOCIATE MARKET BUILDER 400 PV 3 Active Lines (1 AMP) 2,400 GV MB MARKET BUILDER 500 PV 4 Active Lines (1 AMP & 1 LMP) 4,000 GV MMB MANAGING MARKET BUILDER 500 PV 4 Active Lines (2 MMP) 7,000 GV MP MARKET PARTNER You have begun your journey by signing up as a Market Partner 3 CANADA

Compensation - PLAN GUIDE

Titles and Qualifications Elements Of A Success Line MARKET MENTOR You have traveled the Advancement Path and have seen your life transform as you continue to share the innovative products and philosophy of MONAT. As a Market Mentor, you have the vision to go forward confidently and inspire the Market Builders under you as well. You have honed your foundational skills and continue to spend time strengthening Market Partners and others in your Success Lines. Your continued success is directly related to helping others follow the Path to become Market Builders and Mentors like you.

MARKET DIRECTOR Together we are better! As you successfully mentor your team members, they will be motivated to build teams of their own.

Your team will continue to follow your lead, and they will prosper. Your role in their success is rewarded by being paid on the entire sales volume of those teams that develop below you. Your potential is unlimited. Steps to Success • Be Active Monthly. • Become Managing Market Partner By Learning To Sell And Sponsor. • Teach Others To Do The Same. Mentors: Building Teams Directors: Developing Generations MM ED SED AMM ÆD MMM ASSOCIATE MARKET MENTOR MARKET MENTOR MANAGING MARKET MENTOR ASSOCIATE EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR SENIOR EXECUTIVE DIRECTOR 500 PV 4 Active Lines 7,000 GV 500 PV 4 Active Lines (2 MMB) 7,000 GV 30,000 DV 500 PV 4 Active Lines 7,000 GV 60,000 DV 500 PV 5 Active Lines 7,000 GV 120,000 DV 1 new 1st Gen MMB in the last 12 mos.

500 PV 6 Active Lines 7,000 GV 300,000 DV 1 new 1st Gen MMB in the last 12 mos. 500 PV 8 Active Lines 7,000 GV 800,000 DV 1 new 1st Gen MMB in the last 12 mos. (1 MMP & 1 MMB) (1 MMB & 2 AMM) (3 MMB & 2 MM) (4 MMB & 2 MMM) (6 MMB & 2 AED) 4 CANADA

Compensation - PLAN GUIDE

MMP AMP 2 1 3 4 1ST LEVEL 2ND LEVEL 3RD LEVEL 4TH LEVEL MMB MP MP MMP MP MMB MP MMP MP MP MP MP MP AMP MP AMP PERSONAL GROUP Your Personal Group includes you and all Market Partners below you down to, but not including, other Managing Market Builders or higher, and their Success Lines. LEVEL A Level is the position a Market Partner has in relation to you. The Market Partners you personally sponsor are considered your First Level. The Market Partners that your First Level personally sponsors are your Second Level. GENERATION A Generation Begins with a Managing Market Builder or higher anywhere below you, and includes everyone below them, down to but not including, the next Managing Market Builder or higher.

SUCCESS LINE A Success Line starts with a Market Partner directly below you (your First Level) and includes all of the Market Partners below them. Each personally sponsored Market Partner becomes another success line. 1 2 3 4 Titles and Qualifications Elements Of A Success Line 5 CANADA

Compensation - PLAN GUIDE

Commissions & Bonuses UNILEVEL COMMISSIONS Sponsoring and mentoring Market Partners below you is an important and fulfilling part of your role. When the Market Partners below you succeed, so do you! As an Active Market Partner, you can be paid on the sales of the Market Partners Below you, down through four levels.

The percentages you are paid and the number of levels you are paid on are based on your Paid-As Title, regardless of the titles of the Market Partners in your Success Line. All Associate Market Mentors are paid the same Level Commissions as a Managing Market Builder. NETWORK BONUS Network Bonuses reward you for sponsoring and mentoring new Market Partners. As an active Market Partner, you can receive a 5% bonus on the sales made by your new Market Partners within your first two levels during their first 3 full months. This is paid in addition to any level bonuses you may receive on their sales!

The Network Bonus and Unilevel Commissions work hand in hand. If you are an MMP and you sponsor a new Market Partner, you will earn 15% CV on the sales made by your new team member for three full months. In addition, you’ll earn 8% CV on new Market Partners in your second line who are in their first three months of business. MARKET PARTNER ASSOCIATE MARKET PARTNER LEAD MARKET PARTNER MANAGING MARKET PARTNER ASSOCIATE MARKET BUILDER MARKET BUILDER MANAGING MARKET BUILDER 7% 9% 10% 12% 12% 12% L1 3% 5% L3 3% L4 Group Volume Bonus Levels 1 thru infinity, including your PV 2% 3% 5% 6% 7% L2 GROUP VOLUME BONUS As a Paid-As Managing Market Builder or higher, the Group Volume Bonus pays you an additional 2% on the sales of your entire Personal Group, down to the next MMB—who then becomes your first generation and triggers generation bonuses as you promote to AMM! This is paid in addition to the Level Bonuses and Network Bonuses.

You could be paid two or three times on the same sales!

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Compensation - PLAN GUIDE

Commissions & Bonuses 4% 4% 4% 3% 4% 4% 4% 4% 3% 4% 4% 4% 4% 4% G1 G2 G3 G4 G5 4% 4% 3% 4% 4% 3% *If an AMM is paid as an MMB, they will receive a 2% Generation 1 Commission ASSOCIATE MARKET MENTOR* MARKET MENTOR MANAGING MARKET MENTOR ASSOCIATE EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR SENIOR EXECUTIVE DIRECTOR GENERATION BONUSES Generation Bonuses reward you when Market Partners in your Success Lines advance and develop Personal Groups of their own. You will receive Generational Bonuses through five generations, and as you build and empower your organization, you will discover more opportunities and greater rewards.

Generation Bonuses are paid in addition to all other bonuses.

FAST START BONUSES During your first full month, you receive an additional 28% commission on the sales of any Product Packs for that month. FAST BUILDER BONUS During your first full month, you will receive a one-time $200 bonus when you sell 3 Product Packs. *This is in addition to the Fast Start Bonus. PERSONALSALESCOMMISSIONS You can earn 30% minimum sales commissions on Retail Customer sales, 15% on VIP Customer sales, and an additional percentage on everything you sell when you reach at least 750 Personal Volume (PV). PERSONAL SALES BONUS Sharing MONAT products is simple and rewarding.

As a Market Partner, when you reach at least 750 PV, you will earn an additional percentage bonus on all of your personal and Customer orders during the month. As your PV increases, so does your percentage—up to 10%. 750 1,000 1,750 2,500 +3% +5% +7% +10% PERSONAL VOLUME ADDITIONAL COMMISSIONS 7 CANADA

Compensation - PLAN GUIDE

ADVANCEMENT BONUSES We want to celebrate your growth and success with you, so when you are promoted to Managing Market Partner in your first 3 full months, you qualify for a $200 Advancement Bonus. Bonuses are also earned the first time you qualify for each subsequent career title. MANAGING MARKET PARTNER $200 advancement bonus when reached in the first 3 months $200 matching advancement bonus to sponsor ASSOCIATE MARKET BUILDER $200 advancement bonus when reached in the first 4 months $200 matching advancement bonus to sponsor MARKET BUILDER $250 advancement bonus when reached in the first 5 months $250 matching advancement bonus to sponsor MANAGING MARKET BUILDER $600 advancement bonus $600 matching advancement bonus to sponsor* ASSOCIATE MARKET MENTOR $600 advancement bonus 1 share quarterly consistency pool MARKET MENTOR $1,200 advancement bonus Founders club pool 2 shares quarterly consistency pool $3,000 advancement bonus Founders club pool 3 shares quarterly consistency pool $6,000 advancement bonus Founders club pool 4 shares quarterly consistency pool $12,000 advancement bonus Founders club pool 5 shares quarterly consistency pool $25,000 advancement bonus Founders club pool 6 shares quarterly consistency pool MANAGING MARKET MENTOR ASSOCIATE EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR SENIOR EXECUTIVE DIRECTOR *Matching advancement bonus paid to next Managing Market Builder in upline if Sponsor is not paid-as MMB.

*New Market Partners’ first full month is considered “Month 1” of the two-month qualification period. **Monthly Builder Bonus amount is dependent on matching activity for two consecutive months in the qualification period. i.e if you do 6+6 in February and 3+3 in March, your bonus would be $400. However, if you did 6+6 in February and 6+6 in March, your bonus would be $800. And if you wanted to another $800 in April, you’d need to have 6+6 activity again. *Please see Statement of Typical Participant Earnings on last page of this Compensation Plan. BONUS NAME REQUIREMENTS SILVER BONUS 1 (SILVER BUILDER) ENROLL 3 NE W VIP CUSTOMERS AND SELL 1 PRODUC T PACK FOR 2 CONSECUTIVE MONTHS $200 PLATINUM BONUS 1 (PLATINUM BUILDER) ENROLL 3 NE W VIP CUSTOMERS AND SELL 3 NEW PRODUC T PACKS FOR 2 CONSECUTIVE MONTHS $400 SILVER BONUS 1 -- DOUBLED -- (SILVER BUILDER) ENROLL 6 NE W VIP CUSTOMERS AND SELL 2 NE W PRODUC T PACKS FOR 2 CONSECUTIVE MONTHS $400 PLATINUM BONUS 1 -- DOUBLED -- (PLATINUM BUILDER) ENROLL 6 NE W VIP CUSTOMERS AND SELL6 NE W PRODUC T PACKS FOR 2 CONSECUTIVE MONTHS $800 BONUS NAME REQUIREMENTS MONTHLY BONUS MONTHLY BONUS SILVER BONUS 2 YOU ARE A SILVER BUILDER AND HAVE 2 PERSONALLY SPONSORED SILVER BUILDERS $400 SILVER BONUS 2 -- DOUBLED -- AND HAVE 2 PERSONALLY SPONSORED YOU ARE A DOUBLED SILVER BUILDER DOUBLED SILVER BUILDERS $850 PLATINUM BONUS 2 YOU ARE A PLATINUM BUILDER AND HAVE 2 PERSONALLY SPONSORED PLATINUM BUILDERS $800 PLATINUM BONUS 2 -- DOUBLED -- YOU ARE A DOUBLED PLATINUM BUILDER AND HAVE 2 PERSONALLY SPONSORED DOUBLED PLATINUM BUILDERS $1,600 Commissions & Bonuses You can earn bonuses for building a balanced business each month by consistently enrolling VIP Customers and Selling Product Packs (remember 3+3).

Bonuses are paid monthly when you meet the requirements for two consecutive months. For new Market Partners in their Fast Start Period, Month 1 of the Builder Bonus qualification period includes their first full month, and Month 2 of their qualification period is the month immediately following their Fast Start Period.

Silver 1 and Platinum 1 are consistency bonuses that are awarded when you sell one new Product Pack and you enroll 3 new VIP customers (3+1) or when you sell 3 new Product Packs and you enroll 3 new VIP customers (3+3) for two consecutive months*. These bonuses are paid out each month thereafter when you repeat the 3+3 or 3+1 activity. And yes! When you double your efforts for two consecutive months, you can double your bonus! ** When your personally sponsored MP’s achieve Silver 1 or Platinum 1 in the same month you do, you will earn an additional $400 or $800! BUILDER BONUS 8 CANADA

DOUBLE YOUR SHARE BONUS When you qualify for the Quarterly Consistency Pool and are paid-as your Career Title in the month, you will double your share amount for that month! FOUNDER’S CLUB POOL You become a member of the Founder’s Club when you promote to Market Mentor within one year of joining —must join MONAT prior to October 1, 2015.

QUARTERLY CONSISTENCY POOLS As a leader, you can participate in two quarterly leadership pools based on your Paid-As title each month of a quarter. To participate, you must be paid-as an Associate Market Mentor or higher each month of the calendar quarter (January – March; April – June; July – September; October – December). You will receive shares based on your paid-as title each month.

When you qualify as an Associate Market Mentor for two of the three months in the calendar quarter,and in the third month of that quarter you are promoted to Market Mentor, you will receive a total of 4 shares—1 share for each of the two months you were paid-as an Associate Market Mentor, and 2 shares for the month in which you were paid-as a Market Mentor. The Quarterly Consistency Pool begins when the company reaches $400,000 Commissionable Volume for the quarter. The total pool amount will be equal to the percentage of the total Commissionable Volume for that quarter. Paid-as Associate Market Mentors and higher, must have been paid as an Associate Market Mentor or higher for all three months to receive their share of the pool.

Commissions & Bonuses Associate Market Mentor 1 2 3 4 5 6 Managing Market Mentor Associate Executive Director Senior Executive Director Executive Director Market Mentor TITLE SHARES The Founder’s Club Pool pays quarterly each time the company reaches a new Commissionable Volume record. The pool is a percentage of the difference between the old record and the new record. The pool will be divided and distributed based on the total DV contribution percentage of the recipients.

To maintain your Founder’s Club status, you must be paid- as a Market Mentor at least once within 12 consecutive months. *Please see Statement of Typical Participant Earnings on last page of this Compensation Plan 9 CANADA

Glossary ACTIVE: You are considered Active when you achieve at least 200 Personal Volume (PV) in the month. ACTIVE LINE: Any first level Market Partner and their entire Success Line, where at least one person is considered to be Active. CAREER TITLE: your recognition title that only changes upon promotion or in the case of a Managing Market Builder or higher who does not qualify for their Career Title at least once within a 12 month period.

COMMISSIONABLE VOLUME (CV): the volume basis on which you are paid on your Success Lines’ sales. This is equal to the Wholesale Price unless otherwise indicated. CONSISTENCY POOL: Paid-as Associate Market Mentors and higher must have been paid- as an Associate Market Mentor or higher all three periods in order to receive a portion of the pool. Shares are awarded to each participating Market Partner based on their Paid- as Title for each month.

DOWNLINE VOLUME (DV): the PV from you and all of your Success Line, regardless of their title. FIRST FULL MONTH: the month of enrollment plus the entire following month. GENERATION: a Generation begins with a Managing Market Builder (Career Title) anywhere below you and includes everyone below them, down to but not including the next Managing Market Builder. GRACE PERIOD: The two months following the promotion of a Managing Market Builder from your personal group. This applies to Managing Market Builders or higher in which there is a $7,000 GV requirement. For two periods following the new MMB promotion, the GV requirement is halved ($3,500), in order to maintain paid-as rank.

GROUP (PERSONAL GROUP): your Group includes your entire Success Line down to, but not including, the next Managing Market Builder (Career Title) or higher. GROUP VOLUME (GV): the volume from you and your entire downline down to, but not including the next Managing Market Builder or higher. When a Market Partner in your Group promotes to Managing Market Builder for the first time, their GV will be included in your GV for that month’s qualification purposes only. LEVEL: the location of a Market Partner in your Success Line in relation to you, regardless of their title. When you personally sponsor a Market Partner, they are considered to be your 1st Level.

Market Partners below them are the 2nd Level, and so on. LINE: A Line begins with a Market Partner on your 1st Level, and includes all of the Market Partners below them. You will have as many lines as you have personally sponsored Market Partners. Please also see Active Line and Qualified Line.

PAID-AS TITLE: the title for which a Market Partner meets the qualifications for in the period. The Paid-as Title may be the same or lower than the Career Title and may fluctuate from month to month. PERIOD: A period is equal to the actual calendar month. I.e. Six periods would be six calendar months. PERSONAL GROUP: A Market Partner themselves and their entire downline, up to but not including, the next Managing Market Builder (Career Title) or higher. PERSONAL VOLUME (PV): Volume from orders placed personally and directly with the company by your customers and VIP Customers. PERSONAL SPONSOR: the Market Partner directly above you in the genealogy is considered to be your Personal Sponsor.

PRODUCT PACK: when you enroll as a new Market Partner, you have the option to purchase our products at an exclusive, one-time discount within your first 30 days. QUALIFIED LINE: To have a qualified Line, at least one Market Partner in your Line must be qualified to be paid as a specific title (or above) in the month. For example, to be a Managing Market Builder, you need four Active Lines plus two lines that have at least one Market Partner that is paid-as a Managing Market Partner or higher. Qualified Lines depend on the monthly Paid-As Title. QUALIFYING VOLUME (QV): used for Personal Volume (PV), Group Volume (GV), and Downline Volume (DV) calculations in order to determine if you are qualified based on the terms of your title.

QV is equal to the Retail Price.

VIP CUSTOMER (VIPS): a customer enrolled in MONAT Special Deliver (MSD)—also referred to as autoship— program who receives a 15% discount off the retail price of the product and free shipping. To become a VIP Customer, there is an annual cost of $24.95, and a minimum three month commitment. 1 0 CANADA

WWW.MONATGLOBAL.COM +1 844 MY MONAT STATEMENT OF TYPICAL PARTICIPANT EARNINGS The primary source of income of a typical participant in the Compensation Plan (the “Plan” or the “Canadian Plan”) of MONAT Global Canada ULC. (“MONAT”) is from compensation on personal and downline sales of products and/or services.

Personal earnings will vary. A Typical Participant in the Plan is defined as a participant who actively engages in the activities necessary to realize the benefits of the Plan (i.e. has achieved at least the rank of Managing Market Partner). A Typical Participant in the Plan earns between Cdn $22 and $1,188 annualized.

Please note that these earnings are estimates and have been derived from the earnings experience of MONAT’s U.S. parent company, which operates similar and comparable compensation plans, selling comparable products in the United States and worldwide. These earnings estimates will be reviewed after 6 months of operation of the Canadian Plan. After one year, this Statement of Typical Participant Earnings will be updated with compensation actually received by typical participants in the Canadian Plan, and then updated annually thereafter.

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