North AmericaFranchise Earnings

Critical Element of Franchise Success?

Build a Prosperous

Team

As Your Team Grows, Earnings Grow

Encourage and Reward Team Building

• Modify Rank Requirements

• Modify Fast Start Bonus

• Modify Bonus Pools

• Introduce Enroll and Place Option

• Introduce Weekly Pay Program

Modify Rank Requirements

Objectives

1) Align rank requirements with natural team building

2) Allow Franchisees to leverage fast-growing legs by loosening leg structure requirements

3) Increase earnings for presidential ranks

Modified Rank Requirements

Rank Leg @ Points Org. Volume Director 3@1K N/A Sr. Director 3@1K 10K Sapphire 3@5K 50K Ruby 4@5K 100K Diamond 5@5K 150K Double Diamond 1 AFP@100K 500K Triple Diamond 2 AFP@100K 1 million Crown Diamond 3 AFP@100K 2 million

Qualification Requirements

1) No change to PV, GV, Auto Refill requirements

2) Leg Balance – No more than 60% OV in one leg

3) Horizontal Compression is applied to the smallest leg requirement

4) President’s Club and Chairman’s Club must achieve leg and OV requirements for 3 consecutive months

Rank Requirements

Transition

Existing Franchisees – may qualify with new or prior requirements through 2010

All new Franchisees – effective July 1, 2010 will use new requirements

Modify Fast Start Bonus

Modify Fast Start BonusObjectives

1) Align Fast Start Bonus with team building

2) Simplify Fast Start Bonus

3) Introduce "Good, Better, Best" options for starting a Franchise

4) Encourage team-building within first 6 levels

5) Eliminate "early volume" being out of payline or rank qualification

Fast Start Bonus

Modifications

1) Pay Fast Start Bonus on qualified levels rather than shares

2) Introduce ranks of Associate and Jr. Manager

3) Increase payout as higher ranks are achieved

4) Eliminate 90 day period--pay all first-month volume under Fast Start Bonus

Ongoing Fast Start BonusRank

Level Associate Jr. Mgr Mgr Sr. Mgr Dir+250 GV 500 GV 1000 GV 1000 GV 1000 GV

1 20% 20% 30% 30% 30%

2 -- 3% 3% 4% 5%

3 -- 3% 3% 4% 5%

4 -- 3% 3% 4% 5%

5 -- 3% 3% 4% 5%

6 -- 3% 3% 4% 5%

Note: 1) GV requirement for Associate through Manager is one month only2) Members with GV from 100 to 249 points will receive 5% on Level 1

Fast Start Bonus Example #1

Assoc.

New F.O.

Jr. Mgr

Sr. Mgr

Dir

Bonus

5%

4%

3%

20%

Fast Start Bonus Example #2

Assoc.

New F.O.

Jr. Mgr

Mgr

Sr. Mgr

Level 1

Level 2

Level 3

Level 4

Sr. Manager earns 4% on first-month volume of new team member

joining 4 levels down in the team

Fast Start Bonus

Additional Information

1) Qualified Levels are established by 100 PV for Associates, Jr. Managers and Managers and normal rank requirements for Sr. Managers and higher

2) First-month volume up to 1,000 points is paid to the enroller and upline as outlined

3) First-month volume over 1,000 points is paid as outlined beginning with the new Franchisee

Modify Director Bonus Pools

Modify Director Bonus Pools

Objectives

1) Maintain excitement about the bonus

2) Structure the bonus to reward team building

3) Eliminate confusion about bonus amounts

4) Encourage behavior of growth and sustainability

5) Create bridge to Sapphire rank

New Team Builder Bonus

Modifications

1) Modify Director Bonus Pools into a Team Builder Bonus

2) Link Organizational Volume to specific bonus amounts

3) Incorporate payments into regular commission payment timing

Team Builder Bonus

• Ten bonuses

• Earn each bonus once

• Bonus grows as OV grows

• No time limit

• Total potential of $20,000

TB Level OV Bonus

1 3,000 $ 500 2 5,000 1,000 3 7,500 1,500 4 10,000 2,000 5 15,000 2,000 6 20,000 2,000 7 25,000 2,500 8 30,000 2,500 9 40,000 3,000

10 50,000 3,000 Total $ 20,000

Team Builder BonusQualification

1) Personally sponsor at least 3 Franchisees frontline and help them achieve the rank of Associate

2) Leg Balance – No more than 60% OV in one leg

3) Bank and Release – Two options for bonus to be released: a) Hold OV level for consecutive monthsb) Move up to next Team Builder level

Team Builder Bonus Example #1

• Franchisee achieves 3,000 OV in third month

• $500 bonus is “banked”

• Franchisee confirms at least 3,000 OV in fourth month

• $500 bonus is paid

TB Level OV Bonus

1 3,000 $ 500 2 5,000 1,000 3 7,500 1,500 4 10,000 2,000 5 15,000 2,000 6 20,000 2,000 7 25,000 2,500 8 30,000 2,500 9 40,000 3,000

10 50,000 3,000 Total $ 20,000

Team Builder Bonus Example #2

• Franchisee achieves 5,000 OV in first month

• $500 bonus is paid and $1,000 bonus is “banked”

• Franchisee confirms at least 5,000 OV in second month

• $1,000 bonus is paid

TB Level OV Bonus

1 3,000 $ 500 2 5,000 1,000 3 7,500 1,500 4 10,000 2,000 5 15,000 2,000 6 20,000 2,000 7 25,000 2,500 8 30,000 2,500 9 40,000 3,000

10 50,000 3,000 Total $ 20,000

Team Builder Bonus Example #3

• Franchisee achieves 10,000 OV in first month

• $3,000 bonus is paid and $2,000 bonus is “banked”

• Franchisee confirms at least 10,000 OV in second month

• $2,000 bonus is paid

TB Level OV Bonus

1 3,000 $ 500 2 5,000 1,000 3 7,500 1,500 4 10,000 2,000 5 15,000 2,000 6 20,000 2,000 7 25,000 2,500 8 30,000 2,500 9 40,000 3,000

10 50,000 3,000 Total $ 20,000 $5,000

Bonus

Team Builder Bonus – Tranistion

• Existing Franchisees are eligible to earn the Team Builder Bonus

• Starting point will be based on April OV

• Must move up to the next Bonus Level

Team Builder Bonus – Transition Example

1) Achieved 12,000 OV in April

2) Eligible to earn Team Builder Bonus for the 15,000 OV level

3) Must achieve 15,000 OV and confirm it a second month to receive the $2,000 Team Builder Bonus

4) Could also skip up to 20,000 OV

Introduce Enroll and Place

What is Enroll and Place?

Enroll and Place Option allows Franchisees to enroll new people and place them somewhere on their team other than frontline

Enroll and Place

Objectives

1) Allow leaders to place new Franchisees in natural teams

2) Provide both Enroller and Sponsor as mentors to new Franchisee

3) Encourage “pay it forward” principle

Enroll and Place

Program

1) Placement must be done at time of enrollment

2) Placement must be within three levels

3) Enroller retains fast start and future downline fast start

4) Sponsor receives volume for qualification and residual commissions

Enroll and Place Example

New F.O.

Jr. Mgr

Mgr

DirEnroller

Sponsor

Placement

• Director (Enroller) recruits new Franchisee

• Director identifies commonality between Jr. Manager and new Franchisee

• New Franchisee is placed under Jr. Manager (Sponsor)

• Enroller receives Fast Start Bonus, Sponsor receives ongoing commissions

Introduce Weekly Pay Program

Weekly Pay Program

Objectives

1) Pay Fast Start Bonus more quickly

2) Build belief in Franchise Model

3) Allow Franchisees to “turn” investment more quickly

Weekly Pay ProgramProgram

1) Existing Franchisees must register for Unicity Awards Visa Card

2) All new Franchisees will be paid commissions via card

3) Weekly Franchise building period runs from Sunday midnight to Sunday midnight

4) Weekly payments will be credited to the card on Thursdays

5) Initially, Fast Start Bonus Level 1 will be paid

Weekly Pay Program1) Online Citibank account

2) Instant access to funds

3) No more waiting for checks to arrive or clear

4) Check balances or transfer funds online

5) Use like Visa debit card

6) Low ATM cash withdrawal fees

7) Use card to make Unicity purchases

Weekly Pay Card

Register for Card in Franchise Office Starting May 5

Implementation Timing - Recap• Rank Requirements – July for new Franchisees, Jan

2011 for existing Franchisees

• Fast Start Bonus – May

• Team Builder Bonus – May

• Enroll and Place Option – May through Customer Service, Online beginning June

• Weekly Pay Program – Order cards in May, weekly pay begins first week in June