SALES DIRECTIVES July 19, 2010

Transcription

1 SALES DIRECTIVES July 19, 2010

2 TABLE OF CONTENTS July 19, 2010 Changed Directives noted in Bold 1. DIRECTIVES RELATING TO SALES BONUSES-COMPENSATIONS: Annual Incentive Bonus Rev. 01//10 clarification 1.02 Monthly Presidential Bonus replaces Monthly Gas Bonus Rev. 05/ WEEKLY INCENTIVE BONUS (replaces Down Payment Bonus) Eff. 07/19/ Saber Management Recruiting Bonus Sales Rev. 11/ Saber Blazer Award Rev. 06/28/ Saber Ring Award Rev. 06/28/ Saber Diamond Award Rev. 06/28/ Saber Watch Award Rev. 01/ Sales Year-End Awards Qualifiers Rev. 06/28/10 2. DIRECTIVES AFFECTING COMPENSATION: Rewriting Cancelled Contracts Commission Schedule for Mausoleum and Lawn Crypt Rev. 04/06 Sales involving a Trade-In (Upgrades) Policy on Split Commission Sales or Sales Written on the Premises Rev. 07/07 by a counselor other than the one that made the Original Presentation Commissions on Sarcophagus and Family Room Sales 2.05 Cemetery Property Sales in Excess of $25, Rev. 07/ Cancellations - Charge Backs Rev. 7/05 3. DIRECTIVES RELATING TO RULES & REQUIREMENTS REGARDING CONTRACTS: Credit to be allowed on Upgrades and Rewrites Rewrites and Downgrades Rev. 05/13/ Definition of At-Need Sales Minimum Down Payment Rev. 07/10 clarification Minimum Acceptable Monthly Payments Interest Rates REV. 04/01/ Bronze Memorial only Maximum Time for Financing Added 03/ Emergency Information on all New Sales Rev. 04/06, # chg 03/ Unemployment Benefit Certificate Rev. 4/05, # chg 03/ Child & Grandchild Protection Benefit Rev. 07/07, # chg 03/08, chg 05/ Family Protection Benefit Eff. 01/07, REV 01/10, removed 03/23/ Trade-In of Lots from other Cemeteries Rev. 01/07, # chg 03/ Funeral Products written on a Cemetery Contract Rev. 01/10 4. OFFICE POLICIES AND PROCEDURES (GENERAL): Daily Sales (Inventory) Log Making Financial Commitments Immediate Turn in of Sales Agreements REV. 05/ Purchase Orders REV. 01/ Media Relations Eff. 05/06, # chg 01/10 5. DIRECTIVES EMPLOYEE/EMPLOYMENT RELATED: Minimum Combination Sales Standards Rev. 07/ Sales Kit & Materials Responsibility Rev. 05/ Grounds for Immediate Termination Rev. 01/ Purchases Made by Employees 5.05 Electronic Communications Policy (# change) Rev. 01/10 6. DIRECTIVES RELATING TO FUNERAL SALES & FORETHOUGHT Timely Reporting of Forethought Funeral Sales Rev. 06/28/ Final Expense Policy Maximum Volume Counted Eff. 01/ Qualifications for Reimbursement of Insurance License Eff. 06/28/10

3 1.01 Rev. 01/10 for clarification ANNUAL INCENTIVE BONUS *Incentive Bonuses will be paid on a date near to July 15 and December 15. You must be an active employee to receive this bonus. COMBINATION (CEMETERY & FUNERAL)* A counselor turning in paid sales*(at-need and pre-need commissionable volume less cancellations) in excess of $300, for the sales year (July thru June) will be paid a one percent (1%) bonus. If a counselor's sales* exceed $600, for the sales year, a one and a half percent (1 ½%) bonus will be paid. If a counselor's sales* exceed $900, for the sales year, a two percent (2%) bonus will be paid. Bonus is calculated on commissionable items less cancellations.

4 1.02 Revised 05/08* MONTHLY PRESIDENTIAL BONUS The Presidential Monthly Bonus will be paid to counselors meeting the following criteria in Pre-Need and At-Need Property and Merchandise Sales: (Net after cancellations and excluding vaults, caskets, lettering and opening & closings.) *Bonuses are paid near the 15th of the following month. For a 1% Bonus write $20,000 in a 4-week month or $25,000 in a 5-week month. For a 2% Bonus write $40,000 in a 4-week month or $50,000 in a 5-week month. For a 3% Bonus write $60,000 in a 4-week month or $75,000 in a 5-week month.

5 1.03 Eff. 07/19/10 CEMETERY WEEKLY INCENTIVE BONUS (Replaces Down Payment Bonus) Cemetery Pre-Need and At-Need Property and merchandise count towards this bonus. Caskets and Opening & Closings written on a cemetery contract do not count towards the incentive bonus. $5, TO $8, will earn a 1% Weekly Incentive Bonus. $8, will earn a 2% Weekly Incentive Bonus. Sales must have a minimum of 10% down payment to count towards the Weekly Incentive Bonus. All bonuses will be paid the week following the pay period in which it was earned. Normal cancellations and charge back policies apply.

6 1.04 Revised 11/07 SABER MANAGEMENT RECRUITING BONUS (SALES) (ADD-A-PERSON) Any employee other than a sales manager or relative thereof can earn a bonus for recruiting a new salesperson for Saber Management. As this new recruit begins to sell, the employee who did the recruiting will receive a bonus of One Percent (1%) on all new pre-need cemetery sales written by the recruit for twelve months from the day the recruit was hired. This bonus will only be paid to active employees and will cease in the event of termination of employment. *Note: Caskets, Lettering, Vaults and Opening & Closings do not count towards the Recruiting Bonus.

7 Managers must assume responsibility to track volume and order when counselor qualifies for the following awards. There is special program for Sales Managers to qualify for these awards. Please contact your Sales Vice-President or Teresa Humphrey for additional information Revised 06/28/10 SABER MANAGEMENT BLAZER AWARD The Saber Blazer will be earned on a quarterly basis. To qualify for your blazer, you will need to write $200,000 in paid Commissionable Combination Sales Volume (cemetery and/or funeral) in any Saber sales quarter. *Managers are to notify their sales executive when counselor qualifies Revised 06/28/10 SABER MANAGEMENT RING AWARD The Saber Ring Award will be earned on a quarterly basis. You may qualify for your Saber ring only after you have earned your Saber blazer. To qualify for your ring, you will need to write $200,000 in paid Commissionable Combination Sales Volume (cemetery and/or funeral) in any Saber sales quarter. *Managers are to notify their sales executive when counselor qualifies Revised 06/28/10 SABER MANAGEMENT DIAMOND AWARD After qualifying for your Saber Ring Award, you may qualify for your Saber Diamonds. You will qualify for your diamonds with each $200,000 you write in paid Commissionable Combination Sales Volume (cemetery and/or funeral). *Managers are to notify their sales executive when counselor qualifies New 06/29/09 Revised 01/10 SABER MANAGEMENT WATCH AWARD The prestigious and custom designed Saber Watch Award will be presented to the Salesperson achieving $5,000,000 (5 Million Dollars) during their Saber career in paid net Commissionable Combination Sales Volume (cemetery and/or funeral). *The Home Office staff will verify the volume for this award.

8 1.09 Rev. 06/28/10 YEAR-END COMBINATION SALES AWARDS QUALIFIERS Those in the Top 10 (Receive Awards) plus Those who are in the Top 3 Newcomers (Receive Awards) plus Those who have written $300,000+ commissionable volume, net cancellations, plus Sales Managers are qualified by the nature of their position. Qualifiers: Attendance is expected. Your spouse or significant other are invited to attend with you.

9 2.01 Revised 6-99 REWRITING CANCELLED CONTRACTS On occasion it is advantageous for a counselor to allow a family credit on a new purchase for money paid in on a previous agreement that has been cancelled. This credit is figured by the cemetery office and is principal only. Listed below are the rules that govern this type of contract. 1. The counselor's commission will be figured on the net sale. 2. The counselor's commission will be reduced by one-half (2) of the amount of credit allowed. 3. If the previous agreement was cancelled within the past twelve (12) months, the full principal amount paid by the purchaser can be credited on the new purchase. 4. If the previous agreement has been cancelled for more than twelve (12) months, the maximum credit permitted is one-half (2) of the principal amount paid in on the previous agreement. 5. The standard minimum cash down payment is required before the new purchase agreement can be processed. The cash down payment must be in addition to the credit allowed. 6. In cases where it is not advantageous for the counselor to re-write the contract, it should be turned over to the sales manager to work.

10 2.02 Revised 04/06 COMMISSION SCHEDULE FOR MAUSOLEUM & LAWNCRYPT SALES INVOLVING A TRADE-IN (UPGRADES) 1. A lot trade-in for mausoleum crypts is limited to the greater of: a. The current value of the grave up to a maximum of $ per crypt (casket space). b. Or the original cost of the grave (whichever is greater). Please note: more than one grave can be traded in on crypts, however, the maximum credit is $ per crypt unless the original grave cost was higher. In this event, only one space per crypt will be permitted as a trade-in. 2. A "Free" Space Certificate or Certificate of Credit is not permitted as a trade-in unless it was part of the original agreement. If it was part of the original agreement, it would be credited as part of the total amount of credit given for the graves (it is not considered part of the down payment). 3. a. Mausoleum - The minimum upgrade net sale for exterior crypts is $3, and interior crypts is $5, b. Lawncrypts - The minimum upgrade net sale for lawncrypts is $1, Regular sales commission will be paid on the net sale (which is the difference between "the sales price less any discounts" on the new contract and the sale price less any discounts on the old contract). 5. Full credit of the principal amount paid by the customer will be given on merchandise held in trust provided the upgrade exceeds the minimum. 6. If an existing bronze marker is exchanged for lettering or crypt plate, there is no reduction in the commission percentage paid on the crypts. 7. Before any lot trade-in agreement can be processed, it must be accompanied by the original deed or by a properly executed quit claim deed.

11 2.03 Revised 07/07 POLICY ON SPLIT COMMISSION SALES OR SALES WRITTEN ON THE PREMISES BY A COUNSELOR OTHER THAN THE ONE THAT MADE THE ORIGINAL PRESENTATION In whatever case that a contract is written with split-commissions, the counselor who writes/signs the contract will receive all volume credit for bonus and contest purposes. If for some reason both counselors sign the contract, the first to sign will receive the volume credit. Volume is not split. If for some reason counselors and manager agree to a split commission sale or if a counselor makes a pre-need sale to a prospect who has been presented by another counselor within the previous ten days, the two will split the commission on a fifty-fifty basis. The counselor who gave the original presentation must have turned a close sheet in at the office as evidence of the presentation and its date Revised 6-99 COMMISSIONS ON SARCOPHAGUS & FAMILY ROOM SALES Listed below are the commission schedules for the sale of a sarcophagus or a family room: Counselor's Commission - Ten Percent (10%) - Deferred. Manager's Commission - Two-Thirds (2/3) of the regular Manager's commission - Deferred. The cost of the property on which a sarcophagus is installed will be considered a part of the sarcophagus sale. See Directive #(2.05) for contest information and deferred commissions. This commission will be paid on a deferred basis and not advanced. NOTE: THESE TYPES OF SALES DO NOT QUALIFY FOR BONUSES.

12 2.05 Revised 07/07 CEMETERY PROPERTY SALES IN EXCESS OF $25, Commissions will be paid on a deferred basis for cemetery property sales in excess of $25, As payments are made, the counselor will be paid first. The assistant sales manager and sales manager will only be paid after the counselor is paid in full. Deferred commissions are earned at the rate set forth in the employment agreement. Provide Payroll with a note via fax upon occurrence of such. The cemetery property volume in excess of $25, will not count toward any contests or annual awards. Exception: Record High Sale of the Year. This directive also applies to multiple sales to the same party on separate contracts. EXAMPLE: A counselor writes three separate cemetery property sales to the same person for $10, each. The total volume is $30, The commission will be deferred. Only $25, of the total will count in applicable contests or towards that year's annual volume awards.

13 2.06 *Revised 07/05 CANCELLATIONS - CHARGE BACKS *3-DAY CANCELLATIONS MUST BE REPORTED IMMEDIATELY TO THOSE PROCESSING PAYROLL TO AVOID PAYING UNEARNED COMMISSIONS. FAILURE TO TIMELY REPORT A *3-DAY CANCELLATION IS CONSIDERED FRAUD AND WILL NOT BE TOLERATED. If a sale becomes a *3 day cancellation, after the current week in which it was sold, the commissions will be recovered at the rate of One Hundred Percent (100%) of each pay check. NSF (Non Sufficient Funds) and stopped payments of down payment checks will be treated as *three day cancellations. *Right to Rescind. If a sale is cancelled for nonpayment or downgraded charge backs are as follows: When 25% or less of the contract is paid in - the counselor and managers will retain 50% of commissions and overrides earned and Saber will recover 50%. When over 25% of the contract is paid in-the counselor and managers will retain 75% of commissions and overrides earned and Saber will recover 25%.

14 3.01 Revised 6-99 CREDIT TO BE ALLOWED ON UP-GRADES & RE-WRITES When calculating a credit, only the principal paid (not the interest or credit life premiums) can be allowed. The local office secretary can assist you in the calculation of the credit. As an example, let's assume a family has paid in $ on a previous agreement and by computing the interest, we determine the interest is $90.00, then we would deduct the $90.00 from the $ paid and give the family credit for $ on the new agreement. Also see Directive #(2.01) if credit is being calculated on a previously cancelled contract Revised 05/13/10 RE-WRITES AND DOWNGRADES A minimum cash down payment must accompany a re-written contract on a cancelled account. A credit from the old contract cannot be used to satisfy this rule. It is necessary to get approval from the Home Office to downgrade a contract that has in excess of ten percent (10%) paid in or has been sent to our Collections Department. A minimum of one monthly payment must accompany a downgrade or a contract that is being rewritten to re-adjust the monthly payment. No volume is earned for, and no commissions are paid on, re-writes or downgrades.

15 3.03 Revised 6-99 DEFINITION OF AT-NEED SALES For commission and reporting purposes the following definition of at-need will be used: An at-need sale is: A sale of property, merchandise, or services for the use of a deceased person. A sale of merchandise for a grave in which a burial has been made. If the spouse of a deceased makes any subsequent property purchase, it shall always be at-need. If any portion of a contract is defined as at-need, the entire contract is at-need. Contracts cannot be split to include both pre-need and at-need products.

16 3.04 *Revised wording only 07/10 for clarification no dir chg MINIMUM DOWN PAYMENT DOWN PAYMENT PERCENTAGES ARE BASED ON TOTAL CASH/TOTAL SALE PRICE. ADVANCED COMMISSION The minimum acceptable cash down payment to receive ADVANCED COMMISSION (coupon or bank draft) is Ten Percent (10%) of the TOTAL COMMISSIONABLE VOLUME. NO EXCEPTIONS. Trade-ins, transfers, or other credits will not lower the cash down payment requirement. DEFERRED COMMISSION CONTRACTS WITH LESS THAN 10% DOWN of the *TOTAL COMMISSIONABLE VOLUME WILL BE ACCEPTED AS LONG AS THE DOWN PAYMENT IS EQUAL TO OR GREATER THAN THE MONTHLY PAYMENT. Contracts written with less than 10% of the *TOTAL COMMISSIONABLE VOLUME will be paid on a DEFERRED COMMISSION basis. Commission percentages are the same for deferred and advanced. Contracts written with less than 10% down, with required minimum down payment, will count towards bonuses as per Sales Directives. Sales Manager s must verify all contracts with less than 10% down Revised 6-99 MINIMUM ACCEPTABLE MONTHLY PAYMENT The Minimum acceptable Monthly Payment is Twenty-five dollars ($25.00). *No Exceptions (multiple contracts do not void directive).

17 3.06 REV. 04/01/10 Interest Rates & Terms These are in effect unless we are in a company-wide Promotion or Contest. CURRENT FINANCE FACTORS: MAUSOLEUM CRYPTS, LAWN CRYPTS, NICHES: 5% with Coupon Book, 4% with Bank Draft MERCHANDISE, SPACES, MEMORIALS, RELOADS, ETC.: 7% with Coupon Book, 6% with Bank Draft See Finance Factor Sheet For Additional Information Eff. 03/04/09 BRONZE MEMORIAL MAXIMUM FINANCING 48 MONTHS When a Bronze Memorial is the only item sold on the contract, the maximum length of time allowed for financing is 48 months.

18 3.08 Revised 04/06 EMERGENCY INFORMATION ON ALL NEW SALES 1. We will not accept contracts with only a P.O. Box number as the customer's address unless we have directions to, and a description of the house. 2. We will not accept contracts without the customer's phone number. 3. We will not accept a contract unless we have two (2) Emergency Names, Addresses & Phone Numbers. (Persons living at the same address or having the same phone number as the customer are not acceptable). These Emergency Names must live within the cemetery's market area. a. Use the Emergency Name/Child Protection Form to collect the names. b. Emergency Names with only P.O. Box numbers as their address must also have directions to, and a description of the house. c. Administrative staff must check all the emergency information provided. 4. If employed, employer's name and the work phone number are required on all contracts.

19 3.09 *Revised 04/05 UNEMPLOYMENT BENEFIT CERTIFICATE The Unemployment Benefit Certificate is to be offered only to employed customers. This benefit is for sickness, strike, or layoffs only. Customer must comply with the requirements set forth on the certificate. This benefit cannot be used during the first three months of a contract. (The first 3-monthly payments must have been paid as scheduled.) Purchase agreement can be no more than 30 days past due at time purchaser applies for this benefit. This benefit will allow Child/Grandchild Protection to be in force for a total of 6 months, either consecutive or separate months Rev. 05/13/10 CHILD & GRANDCHILD PROTECTION BENEFIT This benefit shall become effective when a 10% down payment is made or when 10% of the purchase price is paid in. Pre-need Cemetery Property and Pre-Need Funeral Merchandise owned (paid or current on installment contracts) by a family is now covered 100% as per certificate specifications. The children & grandchildren requirements are that they be ages 31 days to 21 years of age and are unmarried. Example: If a family who owns crypts loses a child or grandchild who meets the above criteria, we will provide to the family, at no charge, a single crypt for that child. The same applies for families who own graves, vaults, memorials, niches, lettering or crypt plates, and caskets. This protection does not apply toward funeral services nor opening and closings.

20 3.12 Revised 01/07 TRADE-IN OF LOTS FROM OTHER CEMETERIES A counselor may accept unused deeded property from other cemeteries as a trade-in towards mausoleum property in a Saber Management cemetery under the following rules: 1. The property to be traded must be paid in full and deeded to the patron. 2. The property to be traded must be free of burials. 3. The company will allow a $ credit for each space to be traded up to two (2) spaces. 4. The contract must be accompanied by the original deed and/or a properly executed quitclaim deed before it can be accepted. 5. The trade-in allowance will be shown on the trade-in line of the agreement along with an explanation of the reason for the allowance. EXAMPLE: Two (2) spaces from "XYZ CEMETERY" 6. No other "certificates of credit" can be used in conjunction with this offer. 7. NO COMMISSION WILL BE PAID ON THE TRADE-IN AMOUNT.

21 3.13 REVISED 01/10 Funeral Products written on a Cemetery Contract Pre-Need Vaults are the only Funeral products to be written on a Cemetery Contract. *Pre-Need Caskets and Pre-Need Opening &Closings are no longer to be written on Cemetery contracts and are to be written on Forethought policies. *Only with Corporate Approval to assist a family with the rare instances of Imminent Death purchases, can these products be written on a cemetery contract. No commissions or overrides will be paid, nor any volume counted on these sales.

22 4.01 Revised 6-99 DAILY SALES (INVENTORY) LOG Each location is required to maintain a daily sales log posted in the sales office. This log is where all new sales, notes and holds are posted. Sales counselors are required to check this log regularly to see what new inventory has been sold so that individual maps (sales charts) can be marked. As transfers and occasional cancellations occur, these will also be entered on the Daily Sales Log. Counselors are to open locations from this information Revised 6-99 MAKING FINANCIAL COMMITMENTS While the company believes in advertising, recognition and awards, and supporting community affairs, it is against policy for financial commitments to be made on the local level. All requests for advertising (such as yellow pages, city directories, etc.), promotional materials, charitable donations or any other financial commitments must be channeled through the Home Office in writing for review and approval.

23 4.03 Revised 05/10 IMMEDIATE TURN-IN OF SALES AGREEMENTS Because of the potential liabilities involved, it is mandatory that all sales are turned into the office the business day after they were written. NO EXCEPTIONS!!! Here are some examples of potential problems should this policy be ignored: 1. If the sale is not processed and a death occurs, what, if any, protection would be in effect? 2. If a family contacts the Cemetery Office or Sales Office, and we have no record of their transaction, what affect will it have on their confidence in the company and the security of their investment? 3. Loss of agreements, protection applications, notes, etc. 4. Who gets a location if the selection is not recorded in the office and another counselor sells the same location?

24 4.04 Revised 01/10 TRAINING, PROMOTIONAL MATERIALS & LOCAL PRINTING OF CONTRACTS 1. TRAINING & PROMOTIONAL MATERIALS A. The Home Office will provide all training and promotional materials for use by a sales manager at a given location, including sales kits, video and audio tapes, sales manager guidelines and directives, telephone scripts, and advertising, including newspaper, radio and TV, fliers, door hanger, etc. B. Any change to or development of training and promotional materials for use by a sales manager must be first submitted to the Home Office for approval prior to use. 2. LOCAL PRINTING OF CONTRACTS A. The sales manager has the responsibility to monitor contract inventories and to order supplies far enough in advance to insure a continuing supply. Failure to fulfill this responsibility will not be remedied by printing contract locally. B. Under no circumstance, will a sales manager at any time or for any reason, have contracts printed other than through the Home Office. 3. Hightower Graphics Printing A. Any item needing to be printed from Hightower Graphics must be submitted to the Home Office on a Hightower Graphics Requisition Form with a completed Purchase Order Form with all appropriate signatures. If ordering items requiring specific information, such as a business card, a copy of such item must be sent with items mentioned above. B. All requests will be printed & shipped in a timely manner; shipping for in stock items is 3-5 business days and printed material is 10 business days. No item will be printed or shipped without a P.O. Number from the Home Office. Overnight shipping is strongly discouraged except in rare cases approved by Home Office.

25 4.05 Eff. 05/06, # chg 01/10 MEDIA RELATIONS It is Saber s policy that Cemetery Sales, administrative and maintenance employees are not to comment to TV, newspaper or other media. All media questions and inquires should be directed to the President, David Sullivan at the Saber Home office. If local or regional managers are to represent the company to the media Mr. Sullivan will instruct the location as to who that representative will be.

26 5.01 Revised 07/07 MINIMUM COMBINATION SALES STANDARDS All Sales Counselors must maintain a minimum monthly sales production of $20,000 for a 4-week sales month and $25,000 for a 5-week sales month. Failure to reach these minimum standards will mean that the counselor will be placed on probation and be required to go through a review training program. Failure to meet these minimum sales standards for two (2) consecutive months will result in the counselor s termination.

27 5.02 Revised 5-05 SALES KIT & MATERIALS RESPONSIBILITY In recognition of the valuable materials and selling tools contained in the sales kit, each Sales Counselor must assume responsibility to maintain the Sales Kit in good condition, (normal wear and tear excepted). The Sales Kit is for the purpose related to employment with the Corporation. These materials may not be reproduced in any way. Each Sales Counselor and Sales Manager, by signing the Sales Kit Receipt included in the Sales Agreement, acknowledges the Sales Kit s $350 value. In case of termination, the Sales Manager and Sales Counselor agree to return the Sales Kit in satisfactory condition. If the Sales Kit is not returned in satisfactory condition, the Sales Counselor and/or the Sales Manager will be held responsible for a charge up to $350.

28 5.03 Revised 01/07 GROUNDS FOR IMMEDIATE TERMINATION 1. Misrepresentation of facts or conditions of the sale to purchasers. 2. Making a deposit on behalf of purchaser or loaning money to a purchaser, or in any way "fronting" the money, for all or any part of the down payment. 3. Selling to a purchaser any products, service, or burial right for speculation or investment purposes. 4. Because of the potential for conflicts of interest, it is mandatory that all counselors refrain from becoming a broker or middleman by purchasing from or helping family sell property they might own. This is including, but not limited to, mausoleum crypts, lawncrypts, lots, niches, markers, urns, or caskets. Counselors as well, will not promise to put any family's name on a list to sell. 5. Promising to transfer a purchaser's property to another city if he moves, unless said transfer is within an established program of the Corporation. 6. Conflict of Interest- As an employee, your first responsibility is your work for Saber Management. Before accepting any additional employment outside of the office you must have consent from your supervisor to be sure that it will not conflict with your employment with the company. It is your responsibility to report to your supervisor any other jobs you have that may prevent you from performing this job in a satisfactory manner. Saber Management reserves the right to withhold approval of certain outside employment opportunities if the opportunity is deemed as a conflict of interest, illegal or inappropriate in nature. Without approval, the employee may be subject to certain disciplinary actions up to and including termination of employment. -Saber Management Employee Handbook- In the event a counselor is dismissed for any reason, any commissions due will be paid to the counselor s reserve account/security fund.

29 5.04 *Revised 04/05 PURCHASES MADE BY EMPLOYEES The following rules govern the purchase of all cemetery products, merchandise and services made by employees: 1. Employee must be employed by us for at least 6 months. 2. The agreement must be approved by the Sales Manager. 3. The employee, employee's spouse or member of immediate family of the employee (brother, sister, children or parent) will receive a twenty five percent (25%) discount from the price normally paid by a consumer. 4. NO COMMISSIONS OR BONUSES (counselors or management) will be paid on the agreement even if there is no discount. 5. The standard minimum down payment must accompany the agreement. 6. The volume will not count towards any bonuses or contests nor will it be added to the weekly, monthly, or annual volumes for the counselor or office. 7. All applicable purchase benefits will be in force.

30 5.05 eff. 07/07 #chg 01/10 Electronic Communications Policy (As stated in our Employee Handbook)

31 6.01 Revision 06/28/10 Timely Reporting of Forethought Funeral Sales (includes ForeLife) With the beginning of this new Sales Year, Saber Management will make every possible effort to count volume for Forethought sales in the week they are written verses when they are processed by Forethought. Reported sales will continue to be verified with Forethought s reports and any needed volume adjustments and cancellation deductions will be made accordingly. Location administrators are to report Forethought sales on the Weekly Commissionable Volume Reports that are currently being sent in to Teresa Humphrey. To be counted for the current week s volume, the Forethought contract and payment must be approved and received by the administrator and ready to be sent to Forethought for processing. Location administration must still assume the responsibility to get all required paperwork and monies to Forethought for these sales to be entered in a timely manner.

32 6.02 Eff. 01/10 FINAL EXPENSE POLICY $5000 MAXIUMUM VOLUME PER POLICY The maximum amount of volume to be counted for any contest, bonus or annual awards on a Forethought Final Expense policy is $5,000.

33 6.03 Eff. 06/28/10 Qualifications for Reimbursement of Insurance License It is the responsibility of all sales employees to obtain a Life Only Life Insurance License. Counselor must retain all original receipts for class, book and test expenses. Once counselor has successfully obtained their Insurance License, they will be issued an Agent Number. After counselor has written $100,000.00, Saber will reimburse, up to $300 of expenses related to class, books and test. This reimbursement does not apply to food or lodging. It is the counselor s responsibility to request reimbursement and to provide proper receipt documentation. Volume will be verified via Forethought or said Insurance Company.