Compensation Plan Enhancements- EFFECTIVE BP 8 (Singapore)

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1 Compensation Plan Enhancements- EFFECTIVE BP 8 (Singapore) Why the need to enhance? It is paramount in understanding the new compensation plan to also understand what brought about the need for modifications and enhancements. Mannatech pays out 41.5% of its total sales as commission and incentives. This is one of the very highest percentages paid out in all of the industry, and something for Mannatech and all Mannatech associates to be very proud of. However, over the past year or so, many of the Mannatech leaders felt they were not being suitably rewarded for their business building and leadership activities, and their long term commitment. So the company knew that something was not working as planned. A full review of the entire plan was conducted to identify how this mis-match could have come about. It was found that there was a lot of invisible money within the plan. This invisible money is made up of many small amounts paid out to many people, who never really felt its benefit however it made up a large part of the % payouts and took payments from long term leaders and those wishing to be rewarded for sharing the benefits of Mannatech with others. Much of this invisible money was in fact being paid out to consumers so was not perceived as a compensation for building business by them- but rather as a discount to the purchase price. As such Mannatech reviewed both the comp plan and the loyalty plan to better identify the rewards to both loyal customers and loyal business builders. The following was found: 1. Many customers were receiving the team bonus as an offset against their purchase price and did not want to build their team to be larger in fear of losing the team bonus. This acted as a hindrance to those wishing to build and share Mannatech with more people. 2. Unilateral payments were not paying effectively on levels 1-5 but were effective and larger at levels The auto order discount system which was aimed at building long term loyalty was in fact being used as a one-off purchase type to take up the 10% discount. This worked against the goals of the leaders to build a long term sustainable business and caused broad fluctuations in earnings and leadership per BP The Enhancements 1. Loyalty Program has been improved so that loyal customers double their benefits and earn Loyalty points to the value of 20% of the product purchase price of their 3 prior consecutive auto orders! The auto order discount has been removed so all Mannatech associates will be

2 charged the associate price but after 3 consecutive auto orders will receive the benefit of the Loyalty points. So the benefit has doubled- from 10% to 20%! Current customers who do not receive any income through the compensation plan via leadership or team bonus, and who currently have an automatic order will need to select to opt into this program if they wish to take advantage of the 20% Loyalty points rather than the 10% discount Everyone who is automatically opted in, or elects to opt into the new Loyalty program will receive a free product (as selected by Mannatech) with their first automatic order that generates in BP 8 after opting in. Loyalty points are available for use at any time within 12 months of being earned and can be accrued and used in any one-time order. The order using Loyalty points attracts no APO or PV and can be used by contacting the Customer Service team and applying the points against a one-time order. The one off Loyalty points order must be for no greater value than the Loyalty points accumulated to date. The Loyalty order can be sent at the same time as your next auto order so as to avoid additional shipping charges. Those Eligible for Loyalty Program are: 1. All new Mannatech associates who join up with Mannatech after the start of BP All associates who hold a leadership level of RD or above as at the start of BP8 3. All associates who earned a team bonus in BP Any associate who is not included in the above groups and does not have an active Automatic Order template at the start of BP Note: The Loyalty Program supersedes the Healthy Habits program for all new sign ups from BP 8 onwards. 2. Immediate Income It pays more to be an All Star associate; enhancements to the Direct bonus will mean higher bonuses to the Enroller if you are an All Star. For example: AS recruits will now generate a direct bonus of 10% of the pack price if the Enroller is a preferred associate or, 15% if they are an AS Direct Bonuses are also paid to 1 st and 2 nd generation upline leaders! Ability to keep earning a Power Bonus on every 4 All Star packs sold A$400/NZ$440/SG$500 PLUS direct bonuses on each pack. (Note: the Power Bonus should have been reduced to these levels when the All Star pack pricing was reduced in BP 4 but was upheld for the ensuing BP s until the new plan came into effect with all of its new benefits) PV & APO are now paid on all product packs

3 Every All Star pack now includes a Training Certificate which allows the new associate to attend training with any ND or higher whom they select. The trainer then sends the certificate into Customer Service for reimbursement once the training is complete and are then paid A$20/NZ$22/SG$ Organisational income Team and Team Development Bonuses 1. To earn the Team Bonus now you only require 600GPV with no more than 65% (390 GPV) from one leg! So it is simpler. 2. The Team Bonus will pay A$90/NZ$100/SG$112 and is no longer calculated as a top up payment but as a guaranteed bonus amount! So you could earn A$90 Team Bonus + pack bonus + AO Bonus+ primary bonus + A$400 power bonus 3. Team bonus can be earned until you achieve ND leadership level too! 4. You must have 100PV order to qualify for the Team bonus in any BP. 5. Every activity now contributes to Team Bonus GPV, because there is PV on packs and PV on orders too 6. PLUS Team Development Bonus of A$12 is paid to first qualified upline Team Bonus earner or leader AND additional $12 to next upline leader Auto Order Bonus- remains the same at 3% of gross value of AO volume Leadership Levels- remain the same but now no more than 65% from one leg and ED s & PD s also cannot have more than 90% of activity from any 2 legs Leadership Development Bonus- no change, paid every BP on first generation only Unilateral bonuses have been removed and percentage payouts have been adjusted for Primary and generational bonuses refer summary The new plan has caused a shift away from the focus of measuring income by APO and instead has introduced the new Lifestyle bonuses. These bonuses allow everyone at ND leadership or higher to benefit from a secure additional bonus every BP based upon their qualified leadership level. As such you will see a reduction in APO of approximately 15%, but an increase in incomes due to these lifestyle bonuses. 4. Lifestyle bonuses have been introduced and paid every BP to leaders from ND upwards. They are paid on top of product and pack earnings. The Lifestyle bonuses are: ND A$400/ NZ$440/ SG$500, ED A$875/ NZ$965/ SG$1095 PD A$2000/ NZ$2200/ SG$2500. PV is earned on all sign up packs sold- so it s a whole lot easier to become a leader fast!! Follow up with auto orders and on-going recruitment within your team and you will become an ND fast- and that s just the beginning of the guaranteed Lifestyle bonuses!

4 Direct Commission Type AU NZ SG All Star: A$498/NZ$550/S$625 50/75 55/83 62/94 1st Gen $ 8 $ 9 $ 10 2nd Gen $ 5 $ 6 $ 6 Team Builder: A$998/NZ$1098/S$ / / st Gen $ 8 $ 9 $ 10 2nd Gen $ 5 $ 6 $ 6 Preferred Associate A$150/NZ$165/S$188 A$299/NZ$330/S$369 $10-15 $17-25 $11-17 $19-28 $13-19 $ st Gen $ 8 $ 9 $ 10 2nd Gen $ 5 $ 6 $ 6 Power Bonus $ 400 $ 440 $ 500 Leadership ND $ 155 $ 170 $ 195 Development Bonus ED $ 465 $ 510 $ 580 Presidential Development Bonus $ 600 $ 660 $ 750 Training Bonus $ 20 $ 22 $ 25 Lifestyle Bonus ND $ 400 $ 440 $ 500 APO- packs PV- packs ED $ 875 $ 965 $ 1,095 PD $ 2,000 $ 2,200 $ 2,500 All Star $50 $55 $ 62.5 Team Builder $105 $115.5 $ Preferred Associate A$150/NZ$165/S$188 $10 $ 11 $12.5 A$299/NZ$330/S$369 $30 $33 $37.5 Renewal $ 50 $ 55 $ 63 All Star Team Builder Preferred Associate A$150/NZ$165/S$ A$299/NZ$330/S$ Renewal Team Bonus $ 90 $ 100 $ 112 Team 1st Gen $ 12 $ 13 $ 15 Development Bonus 2nd Gen $ 12 $ 13 $ 15

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6 Retain and build on fast leadership by duplication a. First up- Sign up 4 AS- and you are an RD b. Next BP- either- help each to sign up 1 and you are still an RD OR help 3 to sign up an AS each and the first 4 retain their 100PV order and you retain RD leadership c. OR even better- help 4 to become RD s and you are an ND d. Help 3 RD s become ND and you are an ED e. Help 3 ND s become ED and you are a PD Fast action, Fast rewards that motivate and inspire- within the first 90 days of influence

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