Frequently asked Questions about the Compensation Plan:

Click on the Image-#1 above for the Compensation Plan Summary Chart.

Phase I Q1: Why am I paid according to levels in Phase I, rather than generations? A: Working with relationships is fundamental to the success of our business. You sponsor Joe, Joe sponsors Suzy, and Suzy sponsors Ben. That is what we want you to focus on at this stage —building the strength of your relationships with the people you sponsor. Levels encourage you to focus on making each relationship strong. In addition, levels represent the simplest scenario, making it easy for a new Associate to understand how direct-selling organizations work. Q2: How are the rebates calculated? A: Rebates are calculated according to volume. Looking at the summary chart, locate your volume (PV) and its associated percentage. Note that percentages will be paid for volume that falls within the range indicated. For example, the rebate for your volume between 0 and 249 for Phase I is five percent. The rebate for volume between 250 and 499 is 10 percent. For all volume between 500 and 999, the rebate is 15 percent, and so on. The exception to this scale is for Associates who build 1,000 PV or above. If you reach 1,000 PV, your entire rebate from 0–1,000+ is 20 percent of your volume. Keep in mind that you must achieve a minimum of 100 PV to qualify for a rebate check each month. Phase I Rebate Calculation Example As an Associate in Phase I if you have achieved 750 PV your rebate calculation on that volume will be as follows: a. On the first 249 PV you will earn 5% b. On the next 250 PV you will earn 10% c. On the remaining 251 PV you will earn 15%

Q3: What is the definition of TV? A: TV stands for Team Volume. Your team is you and your frontline Associates. If a frontline Associate does less than 100 PV, the PV of lower Associates is “rolled up” to that person’s spot. This is called “TV rollup.” Q4: What is Qualifying TV? A: Qualifying TV, referred to hereafter as QTV, consists of your PV and the PV of your rolled-up front line. Each rolled-up frontline Associate can contribute only 250 PV toward your total QTV. You are still paid on all your TV, but you can use only the first 250 PV of each of your frontline Associates for qualification. The reason for this is that we are building teams, teams that are balanced and benefit from the sales efforts of all members. Q5: What is Cumulative TV, and how does it work? A: Cumulative TV is the combined total of all the TV earned during your time as an Associate of Unicity. Your first month’s TV is added to the second month, which is added to the third month and so forth. Once your Cumulative TV reaches 3,000, you can qualify to be a Manager. If your Cumulative TV reaches 5,000, you can qualify to be an Elite Manager. Q6: How do I benefit from enrolling other Associates while I’m in Phase I? A: Each Associate you sponsor is a member of your front line. You want to work toward establishing five qualified* frontline Associates, because the amount of income you receive from each of your “legs” (a leg is the downline beginning with one of your frontline Associates) depends on how many qualified* frontline Associates you have. In Phase I, we pay depth for width. Here’s how it works: If you have two qualified* frontline people, then you can get paid two levels deep. If you have three qualified* frontline people, you can get paid three levels deep. This pattern continues up to the point that you have five qualified* frontline people and are paid five levels deep. * A qualified Associate is someone who has a minimum of 100 PV a month Another reason for enrolling new Associates is our Enroller Rewards program. In this program, you receive a five percent bonus for each new Associate that you enroll. Once you progress past Phase I, you’ll be eligible for a 10 percent Enroller Rewards bonus (this is further explained below). (Note: This five percent Enroller Reward benefit is based on the new Associate’s Personal Volume, or “PV.”) Q7: What are Enroller Rewards, and who benefits from them? A: Enroller Rewards are our way of thanking you for the work involved in sponsoring new Associates. Each time a new Associate is sponsored, five percent of that new Associate’s PV is paid to the person who enrolled them, and another five percent—for a total of 10 percent—is paid to first Elite-level member in the new Sponsor’s upline. We call this second five percent the Elite match of the Enroller’s Reward. If the enroller personally qualifies for Elite status, the enroller would receive the entire 10 percent Enroller’s Reward. (See Phase II for information on achieving Elite status.)

Q8: What are the advantages of moving to Phase II? A: The advantages are many! First, you’ll begin to get paid according to generations instead of levels. The generation concept rolls the earnings of multiple levels into a single generation, making your potential earning power much greater. Second, you receive higher percentages in commissions for each generation (please see the commissions chart). Third, you are eligible to become an Elite Manager. Elite Managers can earn an added two percent commission on the first four levels in their downline. Fourth, as an Elite Manager, you’re eligible to receive an Elite match of five percent of the Enroller Reward when you enroll a new Associate or if someone in your downline enrolls a new Associate for whom you are the first upline Manager Elite. Q9: Why should I be on the EasyShip program? A: EasyShip makes your business easier by ensuring that you receive the products you need each month, and it also makes your business more predictable when people in your downline are on the EasyShip program. EasyShip is not required for earning rebates. However, an EasyShip* agreement of at least 100 PV is required to earn any bonuses and overrides from your organization. * Easyship is defined as a product order agreement of 100 PV or more that is automatically sent each month and guarantees that you meet the PV qualification requirements to be eligible for all bonuses under the compensation plan. In other words, in order to receive overrides on any other people you must have 100 PV EasyShip. Q10: When do I get paid at any new rank achieved? A: You will be paid at the rank you achieved for that month. That is, if you achieve Elite Manager in your very first month, you are paid as an Elite Manager your very first month!

Phase II Q11: Why should I become a Manager? A: Manager rewards are far superior to Phase 1 rewards. First, you can earn whatever you were earning in Phase 1 through the Courtesy Bonus (see Q&A 16). Second, you will receive significantly enhanced bonuses on your organization’s sales efforts. Third, you are on your way to even further enhanced rewards as you grow in management. Q12: How do I achieve and maintain Manager status? A: To qualify as a Manager, you must do the following: 1. Achieve 100 monthly PV 2. Achieve 1,000 monthly QTV 3. Achieve 3,000 Cumulative TV 4. In each month have three qualified (100 PV) frontline Associates 5. Ensure you have your 100 PV EasyShip agreement in place. Q13: Why should I become an Elite Manager? A: Elite Manager rewards are superior to Manager rewards. For the extra effort to become an Elite Manager, you qualify to receive enhanced overrides and all the leadership bonuses later as you progress. Q14: How do I reach Elite Manager status? A: To be eligible for Elite Manager status, you must do the following: 1. Achieve 250 monthly PV 2. Achieve 1,500 monthly TV 3. Achieve 5,000 Cumulative TV 4. In each month have five qualified (100 PV) frontline Associates 5. Ensure you have your 100 PV EasyShip agreement in place. Note: If you accumulate 3,000 TV during your first two full months in the business, the 5,000 TV requirement will be waived. Q15: How are my first two volume months measured? A: We give you the remainder of whatever month you sign up in, plus an additional full two months. This way, everyone has at least two full months in which to qualify. For example, if you sign up on April 15, your qualifying period would include the rest of April, all of May, and all of June.

Q16: What is the Courtesy Bonus? A: The Courtesy Bonus allows a person to earn more in Phase II at the Manager level than in Phase I. In other words, whatever you earned in Phase I, you can earn at least that much in Phase II at the Manager level, provided you and your frontline Associates qualify with the appropriate PV amounts. If, for example, you had volume on your fourth level in Phase I that was not on your first generation in Phase II, we would still pay you your Phase I bonus on that volume at the Phase I rate, as long as you had four qualified frontline Associates. Q17: Does Horizontal Compression still apply? A: Yes. Q18: There are slightly fewer ranks in Phase II than there were in the old plan. Why is that? A: We refined the plan to ensure that each new rank earns compensation in the form of added generation depth. In this plan, each change in rank is generously rewarded with added depth, meaning that your earnings increase with each progression. We also wanted a smooth transition from one rank to another; previously, transitions in rank were unevenly stepped. This new plan represents a smooth rank progression, with substantial shifts in earning power accompanying each step. Q19: What is the purpose of Elite status, and how am I rewarded? A: For many years in this industry, 100 and 1,000 have been the gold standard. We wish to honor that performance level; however, there has been no inherent reason for a person to do more than the norm. The Elite program is our way of rewarding Associates who demonstrate an ability to perform above and beyond the old standard. Elite performance is defined as having five frontline active Associates (minimum of 100 PV each) and achieving 250 PV, as well as 1,500 TV monthly (after accumulating 5,000 TV). When you achieve this standard, we add a bonus of at least two percent extra commission on top of all other earnings for your first four levels. Q20: Why single out and reward the first four levels for Elite status? A: Our own and industry data have shown that it takes two to four people working in concert to build a strong leg. By paying extra percentages for those first four levels, we do two things. One, we reward you for bringing productive people together in such a way that you build a strong leg, benefiting you and them. Two, we reward you for your excellent leadership and team development, for operating above and beyond the norm. Now, 250 PV and 1,500 TV will become the new gold standard representing outstanding team performance. Q21: I’m hearing a lot about the “U” shape. What makes the “U” so different? A: To build a powerful, affluent business, you need two things: (1) strong activity and (2) leverage. Activity consists of buying, selling, and using product, as well as sponsoring and 6