1 SOMEONE FELT IT IMPORTANT TO PASS ON AN OPPORTUNITY TO YOU THAT CAN CHANGE YOUR LIFE. MAKE THE CHOICE TODAY, USE THIS OPPORTUNITY!

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1 1 SOMEONE FELT IT IMPORTANT TO PASS ON AN OPPORTUNITY TO YOU THAT CAN CHANGE YOUR LIFE. MAKE THE CHOICE TODAY, USE THIS OPPORTUNITY!

2 WEALTHNET MIGHT HAVE THE SOLUTION FOR YOU! MOST THINGS IN LIFE REVOLVE AROUND MONEY! With More Money you can: Enjoy a better lifestyle Buy the things you dream about Move to a better suburb or bigger house Afford to buy a car or drive a better car Send your children to the best schools or to university Ensure an enjoyable retirement WealthNet offers you ONE solution that can contribute towards Your Future, Everyday Life and offer you a way to realise some of your Goals & Dreams! A YOUR FUTURE C GOALS & DREAMS B EVERYDAY LIFE Maximus Flexible offers you great benefits with maximum flexibility. You have the freedom to choose only those solutions and benefits that are important to you. 2

3 A YOUR FUTURE HAVE YOU EVER WONDERED... How you can also share in the wealth of JSE listed companies without having to invest huge lump sum amounts? How you can own shares in your own name? How you can benefit from Empowerment transactions offered by the top companies in South Africa? How to have access to a basket of insured benefits under one product at an affordable premium? How you can have your own business without having to lay out huge capital amounts? Did you know? ¾ Shares are generally a good form of Wealth Creation. ¾ When you own shares in a company, and if such a company makes profits and declares dividends, you benefit from that. ¾ Selective Empowerment Investments 1 Limited (SEI1) and Selective Empowerment Investments 2 Limited (SEI2) (collectively referred to as the SEI Companies ) are Investment companies in which you can buy shares on a regular basis via a monthly debit order from your bank account through the Virtus Investment Plan. ¾ These SEI Companies in turn buy and sell shares in the listed companies as well as other investment instruments such as property unit trusts, bonds, preference shares and collective investment schemes. ¾ The SEI companies qualify as Broad-Based Black Economic Empowerment entities and therefore have access to Empowerment offerings from the biggest companies in South Africa. (SEI1 has already bought into the SASOL Inzalo and both SEI1 and SEI2 have bought into the MTN Zakhele Empowerment offering). ¾ SEI1 and SEI2 have in excess of and shareholders respectively (mostly from previously disadvantaged communities). ¾ SEI1 and SEI2, since inception in April 2008 and September 2009 respectively, have a Net Asset Value (Assets less Liabilities) in excess of R135 million and R5.5 million respectively. Over the years it has been proven that investing in shares is a way to realise long term wealth. The secret is to buy shares and then give them time to grow. The longer you hold onto your shares, the more potential there is to realise a good return on your investment. When investing in shares, an investment horizon of 5 years and longer is recommended. 3

4 A YOUR FUTURE NOW EVERYONE CAN INVEST IN SHARES! Virtus Investment Plan (VIP) The VIP is a facility through which you can, by way of a monthly debit order, buy shares. We manage the whole process of investment for you. You don t need the knowledge, experience or big sums of money! When When the the VIP VIP option is is selected, the investment portion is used is used to buy to buy shares in in an an Empowerment Investment Company called Company SEI every called month. SEI1 or SEI2. SEI Company The SEI SEI in Company turn buys in turn, and negotiates sells shares and/or in subscribes different to offered listed Empowerment companies deals on the and actively JSE and seeks other best investment instruments opportunities, investing and/or into negotiate and out of or different subscribe shares and other to investment offered instruments Empowerment which will deals in turn for lead maximum to maximum returns. for you as a shareholder of the SEI Company. THIS MEANS THAT YOU CAN, THROUGH YOUR SHAREHOLDING IN THE SEI COMPANY, GAIN EXPOSURE TO SHARES IN SOME OF THE TOP JSE LISTED COMPANIES IN SOUTH AFRICA IN WHICH THE SEI COMPANY MAY SEEK TO INVEST. Please note however that the SEI Companies offer no guarantees. SEI1 and SEI2 are only suitable for investors seeking a high or a moderate to high return and who are able to withstand a high or moderate to high level of risk in order to achieve such a return. An investment term of at least five years is recommended in order to maximise the potential gain whilst minimising the risk of a loss. How do you become part of this? Virtus Financial Services (Pty) Ltd ( Virtus ) is an Authorised Financial Services Provider (FSP2421). Virtus created the Virtus Investment Plan through which you can subscribe from as little as R160 per month, or such higher amount as specified by you. Virtus will deduct an account fee of R30.00 (Plus Vat) and a lead fee of 4% (Plus Vat) from the subscription amount indicated by you and will buy shares for you in the SEI Company that you have selected with the remaining balance. WealthNet (Proprietary) Limited ( WealthNet ) is an authorised representative of Virtus and is authorised to market the Virtus Investment Product on behalf of Virtus. As such, WealthNet can assist you with the subscription to the Virtus Investment Product as well as the Gold Insured Benefits and Funeral and Beef Benefit. The Account Fee of R34.20 will be payable for as long as the investor owns SEI shares. Virtus also charges the SEI companies an annual Portfolio Management Fee of 1.5% per year and a 5% Performance Fee, which are both calculated and charged monthly for managing the assets of the SEI companies.

5 B EVERYDAY LIFE BE PREPARED FOR WHATEVER LIFE THROWS AT YOU! Other benefits you can also select: GOLD INSURED BENEFITS for only R65.00 PER MONTH Subject to all the terms and conditions of the relevant policy document. This benefit entails you to the following insurance benefits, underwritten by African Unity Insurance Ltd. 1. COMMUTER TRAVEL DEATH BENEFIT R will be paid out should you die as a commuter in any vehicle related accident. 2. PERMANENT DISABILITY BENEFIT Accidents and illness happen. When you become permanently disabled due to losing limbs, becoming blind or deaf, this benefit pays up to R CANCER TRAUMA BENEFIT When you are diagnosed with any cancer other than skin cancer, this benefit pays R HOSPITALISATION COMPENSATION BENEFIT This benefit pays R500 per day if you need to stay in hospital for more than 24 hours up to a maximum payment of R2 500 for up to 5 nights hospitalisation. 5. RETRENCHMENT ASSISTANCE BENEFIT Retrenchment can happen to anybody. This benefit pays R200 per day for 20 days in the case of retrenchment. 6. TELEPHONIC LEGAL ADVICE HOTLINE BENEFIT Many of us feel overwhelmed and insecure when legal issues hit us. Now you can have professional attorneys at your service 24 hours per day. When life happens we help you live it! The R65 per month includes Commission of R5.56, a License Fee of R6.20 and a Binder Fee of R17.24 which Virtus earns for performing certain administrative functions on behalf of the insurer. 5

6 B EVERYDAY LIFE YOU CAN ALSO SELECT TO ADD THE ADDITIONAL FUNERAL BENEFIT! Is it important to provide a dignified funeral for loved ones? Can you cover the coffin and tombstone costs? Would it be easier for you if you could cover catering costs for guests and family at the funeral? SINGLE POLICY This benefit provides a single member policy for R35.00 per month and a family policy for an additional R35.00 an additional R35.00 per month subject to a 6 month waiting period and all the terms and conditions of the relevant policy document. This benefit entails you to the following insurance benefits, underwritten by African Unity Insurance Ltd. FAMILY POLICY PRINCIPAL MEMBER: PREMIUM - R35 + SPOUSE & KIDS : R CASH FOR R5 000 YOUR CATERING! R PREMIUM - R35 FUNERAL BENEFIT BEEF OR CATERING BENEFIT R CASH IN TOTAL Optional = FAMILY POLICY (Beef or Catering Benefit) TOTAL PREMIUM - R70 WealthNet offers you peace of mind. 6 Each R35 per month includes Commission of R7 and a Binder Fee of R8 which Virtus earns for performing certain administrative functions on behalf of the insurer. During the 6 month waiting period, the entire premium is retained by Virtus and Lionheart Risk Management (Pty) Ltd for initial marketing and promotional expenses.

7 C GOALS & DREAMS CASH IN YOUR HANDS! THE WEALTHNET FRANCHISE OPPORTUNITY TO HELP YOU ACHIEVE YOUR GOALS & DREAMS We all need more money! The problem is that our current jobs will not necessarily pay us more money and even getting a new job does not guarantee that we will achieve all of our immediate financial needs, goals or dreams. A solution is to start a business on the side through which you can earn more money without risking your current job. BECOME A WEALTH CATCHER! WealthNet empowers people and provides a solution for them to earn more money! Catch more cash by sharing the WealthNet products and Franchise Business Opportunity with others! Catch Your Wealth! IS THIS SELLING? No. You are simply spreading the word about the excellent products and opportunity! It is called Network Marketing people helping people! Ubuntu! Through Network Marketing you duplicate your time and efforts through other people and earn an income from their combined time and efforts. In simple terms it means that if you can tell and introduce 2 new people a day to the exciting Virtus Investment Plan, Gold Insured Benefits, Funeral Benefits and Business opportunity, who then become WealthNet Franchisees and subscribe to the products/benefits and they do the same, you have actually created a 48 hour day. (2 x 24 = 48) 7

8 C GOALS & DREAMS YOUR OWN WEALTHNET FRANCHISE! The WealthNet Franchise might be an ideal business for you You don t need premises, staff or stock. You can decide how much time you want to spend at working your business. You can work from home and involve your family. You determine your own income. HOW DO YOU MAKE MONEY? In your WealthNet Franchise, you will earn an ongoing monthly income from all of the people that you introduce, who also become YOUR subscribers of the products LEVEL 1 offered through Virtus and/or Franchisee s. If those people YOUR become franchisees, you will LEVEL 2 also earn an income from all of the people that they YOUR introduce, and who become LEVEL 3 Product Subscribers up to your level 5. YOUR LEVEL 4 YOUR LEVEL 5 YOU EARN AN INCOME FROM ALL THESE PEOPLE ONGOING MONTHLY INCOME WealthNet has developed a franchise network system through which the WealthNet Products and Franchise Business Opportunity are marketed. By becoming a WealthNet Franchisee you can introduce people to the products (Virtus Investment Plan and/or Gold Insured Benefits and/or Funeral Cover), who can also become WealthNet Franchisees. Your Future 8 Goals & Dreams Everyday Life

9 C GOALS & DREAMS When people in your network subscribe to the products, you will earn an income on their collected premiums, based on the combination of products they have selected. When they introduce other subscribers and/or WealthNet members, you will also earn an ongoing lead income on those people s collected premiums, based on the combination of products they have selected (up to five levels deep). When people in your franchise network subscribe to all of these options : LEVEL Virtus Investment Plan Gold Insured Benefits ONGOING MONTHLY INCOME LEAD PROVIDING INCOME EARNED * Single Funeral & Beef Family Funeral & Beef Business Power Tools Total Income per Member Members per Level Total Income per Level Accumulated Income L1 R 1.28 R 0.95 R 1.00 R 1.00 R 5.00 R R R L2 R 1.28 R 0.95 R 1.00 R 1.00 R 5.00 R R R L3 R 1.28 R 0.95 R 1.00 R 1.00 R 5.00 R R R L4 R 1.28 R 0.95 R 1.00 R 1.00 R 5.00 R R R L5 R 1.28 R 0.95 R 1.00 R 1.00 R 5.00 R R R TOTALS: R 6.40 R 4.75 R 5.00 R 5.00 R R TOTAL POSSIBLE EARNINGS PER MONTH = R *Note: The table illustrates the maximum possible monthly income from introducing 5 people who each do the same for 5 levels. In this example, everybody is a WealthNet Franchisee having selected all of the products. The Virtus Investment Plan income is calculated at 4% of the contribution, shared over five levels. Although the calculations used in the above example are correct, the structure of your network and the product combinations selected by the members in your down-line may differ from the example above. Therefore your earnings may be less than shown above. Amounts mentioned apply, provided the Monthly Subscriptions have been paid. This brochure should not be taken to provide guarantees with regard to the availability of work, business, projected income or any other benefit promised or implied. There is no guarantee on the results or outcomes you will achieve. You are strongly urged to obtain, at your own cost, assistance from an independent advisor to ascertain the probable result or outcomes based on realistic facts and assumptions and all currently relevant and applicable circumstances. WEALTHNET FRANCHISE RIGHTS Introduce means that you (introducer) provided the particulars of a person, with his/her consent, to the Company, via the Company s official paper-based Lead Form or website Lead Form, whereafter an Agent of the Company contacted that person and he/she subsequently chose to subscribe to one or more of the products/benefits. The non-exclusive right to introduce new members and earn an ongoing income 9

10 C GOALS & DREAMS BUSINESS POWER TOOLS Only R85.00 per month 1. Your own WealthNet Website, which you can print on your business cards and advertise anywhere. Prospects could be reading the website while you are at work or even sleeping and any prospect that subscribes to any of the products or becomes a Franchisee via your website link, will automatically be placed on your Level 1. This is much easier and faster than having to buy Lead Forms. This is a powerful and valuable marketing tool. Simply send prospects to www. wealthnetwork.co.za/your-member-number. 2. SMS Lead Facility - This allows you to SMS the name and number of a prospect (that has given you permission to do so) to WealthNet and a Client Service Agent will contact your prospect and inform them about the products and business opportunity. Your prospect could subscribe to selected products over the telephone straight away or request to receive additional information via , fax or post. A follow up SMS will be sent to you to inform you of the outcome of the conversation. To send a SMS Lead to WealthNet, simply SMS the word join, followed by your member number, your Prospect s name and his or her contact number, to Priority Listings - If someone in your area would like to see a presentation, we will tell them about you. The Franchise Business Power Tools includes a listing of your contact details on the main WealthNet website, which is also used for telephonic enquiries. The list is grouped by Province and suburb, listing all of the WealthNet Franchisees in each area. 4. Head Office Prospect Conversion Assistance The aim is to help you motivate your down-line members to take action, which will ultimately be to your benefit. Many Franchisees are not as active as they could be and WealthNet will contact these members and offer them assistance and motivation to become more active and assist them through the SMS Lead Facility to get their businesses going. 5. Private Business Presentations Franchisees that select the Business Power Tools may request to have private presentations done in their area. You will need to arrange/provide a professional venue and ensure that at least 20 prospective clients (non-franchisees) will attend before requesting a private presentation. The presenters will consider your request carefully before agreeing, specifically evaluating the venue, its location and the guest list that you have provided as well as taking the size of your down-line into account. To arrange a presentation in your area, contact the Network Manager via the Client Service Centre. 6. Free Marketing & Training Material - Be the first to know what the latest enhancements to marketing and training material entail. Franchisees that select the Business Power Tools receive samples of the latest marketing and training material via post. This is the easiest way to always stay up to date with the latest booklets, brochures, flyers, forms and even DVD s from time to time. 7. The WealthNet Secretarial Service - It is like having your own WealthNet office. Your members in your down-line or any new prospect can simply phone the WealthNet Secretarial Service number, quote your name and member number and leave a message for you or send faxes to you via the Secretarial Service fax number. The WealthNet Secretarial Service will ensure that the messages and/or faxes are forwarded to you. A dedicated and professional team man this service to ensure that your business can grow from strength to strength. 8. SMS Call Back Facility This facility saves you time and money. Whenever you need to speak to a Client Service Agent, instead of phoning WealthNet and paying for the call, rather have WealthNet call you back. Simply send a SMS with the first word info followed by your question, to and a WealthNet Client Service Agent will call back as soon as possible. 9. SMS Communication Facility - This is ideal for communicating with your down-line team. Included in your Business Power Tools you have 75 SMS s per month that can be used to communicate with your down-line. You could send a weekly SMS to all of the active franchisees that you have introduced on your Level 1 for instance. Use this facility to invite them to motivational breakfast sessions or arrange private meetings and training sessions. If you send more than 75 SMS s in a month, the cost for every additional SMS is still far less than sending SMS s from your cell phone. To send a SMS to your down-line, simply contact the WealthNet Client Service Centre. 10. StratVest.co.za - You will have access to investment research and trading ideas. You will gain insight into the real reasons why the analysts believe a particular company will do well or not. You could be among the first investors in WealthNet to know about exciting new investment opportunities as soon as they are discovered and nothing stops you from opening a trading account with your bank or stock broker and then using this information to formulate your own investment strategies when buying and selling shares on the JSE. WealthNet Franchisees get complementary access to StratVest included in their Business Power Tools subscription!

11 C GOALS & DREAMS MAXIMUS FLEXIBLE MEMBERSHIP OPTIONS THROUGH WEALTHNET! You can choose any combination of the products based on your specific requirements! (A) Virtus Investment Plan (Minimum R160 pm) (B) Gold Insured Benefits (C) Funeral & Beef Benefit (Principal Member) (D) Funeral Benefit (Spouse & Children) (E) WealthNet Franchise Fee (F) WealthNet Business Bundle R /month R 65.00/month R 35.00/month R 35.00/month R 0.00/month R 85.00/month Total (A+B+C+D+E+F) R If you choose, for instance, to take the Virtus Investment Plan investment of R160, plus the Gold Insured Benefits of R65, plus the WealthNet Business Bundle for R85, your monthly subscription will be R310. You choose the options that suit you best! Catch On Now! THE NEXT STEPS If you have decided that this is for you, contact the person who handed this brochure and Franchise Disclosure* to you and: Ask him or her for the Lead Form. Complete the Lead Form and select the products and benefits that suit you. If you have chosen to become a franchisee, note that as required by law, you may only sign the Lead Form 14 days after receiving the Franchise Disclosures contained on the following pages. Once you sign the Lead Form, the franchise agreement will immediately come into effect. Sign the form and hand it over to your introducer or post the form to WealthNet s Head Office. When the company receives the form, a Wealthnet Agent will contact you and spend approximately minutes with you on the phone and again explain all of the options, products and the business. Some prescribed regulatory disclosures will also be made and when you agree and accept the benefits and the terms subject to which they are offered, you will receive a welcome letter, a CD and a pack of documents that will include the SEI prospectus, the insured benefits insurance contract and the terms and conditions of the WealthNet franchise rights (depending on the products/benefits you selected). Then start building your business and earning an income. Attend the presentations and training seminars. You have 14 days to work through the Welcome Pack and raise any concerns that you may have. With regards to the Franchise agreement, you may cancel the agreement at any time during the initial 10 business days and with regards to the financial products, you have 30 days. Thereafter 30 days written notice will be required to terminate your subscription to any of the products and/or Franchise Fee. Should you have any further questions or need more information, you are welcome to visit the WealthNet website at or contact the call centre on * Under the new Consumer Protection Act, Act 68 of 2008, as amended from time to time (CPA), a Franchise Agreement may not be signed within 14 days of receiving the Franchise Disclosures, as contained on the following page. IMPORTANT: The person who gave this brochure to you, may not provide you with any form of financial advice whatsoever. The person is only allowed to supply you with the factual information regarding the products/benefits and such information as is contained in the different brochures and which is available upon request. The FAIS agent must make certain regulatory disclosures during the telephone call. For your protection such a call is recorded. If you need financial advice, please contact your financial advisor Join Today! 11 SMS INFO and your name to and a consultant will phone you!

12 Franchise Disclosure Form DISCLOSURE DOCUMENT FOR PROSPECTIVE FRANCHISEE In terms of regulation 3 promulgated in terms of the Consumer Protection Act, 68 of 2008, WealthNet (Proprietary) Limited ( WealthNet ) is obliged to provide every prospective franchisee with a disclosure document dated and signed by an authorised officer of the franchisor, at least 14 days prior to the signing of the franchise agreement, which contains certain minimum information. The purpose of this document is to effect the required disclosures to the prospective franchisee in accordance with the aforesaid regulation 3, and WealthNet accordingly discloses as follows: a. The number of individual outlets franchised by the franchisor are as follows: As at 28 February 2012: Zero b. The growth of the Franchisor s turnover, net profit and number of individual outlets, if any, franchised by the franchisor for the financial year prior to the date on which the prospective franchisee receives a copy of this disclosure document are as follows: As at 28 February 2012: Turnover: R Net Profit/(loss) (After Tax) (R ) Individual outlets (if any) Zero c. We hereby confirm that there have been no significant or material changes in WealthNet s financial position since the date of the auditor s certificate attached and that WealthNet has reasonable grounds to believe that it will be able to pay its debts as and when they fall due. d. Our projected levels of potential sales, income, gross or net profits or other financial projections for the franchised business or franchises of a similar nature with particulars of the assumptions upon which these representations are made is illustrated on the next page. Please take note: Since Maximus Flexible allows a prospective customer to select any combination of products/benefits, every selection made generates a different set of income for the franchisees on the five levels above the new customer. The following Income Table illustrates what is earned if everybody in your network has selected all of the products. 12

13 Franchise Disclosure Form Level Virtus Investment Plan Gold Insured Benefit Single Funeral & Beef Benefit Family Funeral & Beef Benefit Business Bundle Income per Level Level 1 R 1.28 R 0.95 R 1.00 R 1.00 R 5.00 R 9.23 Level 2 R 1.28 R 0.95 R 1.00 R 1.00 R 5.00 R 9.23 Level 3 R 1.28 R 0.95 R 1.00 R 1.00 R 5.00 R 9.23 Level 4 R 1.28 R 0.95 R 1.00 R 1.00 R 5.00 R 9.23 Level 5 R 1.28 R 0.95 R 1.00 R 1.00 R 5.00 R 9.23 Note that the Virtus Investment Plan Income is calculated at 4% of the customer s contribution towards the Virtus Investment Plan, which is then equally divided over the five levels. Based on the above Income Table, should a new franchisee select all of the products, each of the franchise owners on five levels above him/her would earn R9.23 every month, for as long as the new franchisee continues to subscribe to the products. The franchisee s total monthly income will depend on the total number of customers within his/her five level structure, their product selections and whether or not they are also franchisees. The onus rests with you to project your estimated earning potential based on the amount of effort and support that you are willing to invest in building a strong business of quality customers and franchisees. e. We also enclose hereto a certificate on an official letterhead of the auditors of WealthNet, which contains the disclosures required in terms of regulation 3(3) of the Consumer Protection Act. f. As the company s Franchise operation does not require that physical outlets are to be maintained by Franchisees, the Annexure required under regulation 3 of the Act for this purpose is therefore not included. However a full list of the Franchisees of the company is available at the registered offices of the company. g. We also enclose an organogram depicting the support system in place for franchisees as indicated in Annexure B hereto. Signed at Centurion on 9 January 2012 D B Harington On behalf of WealthNet (Proprietary) Limited 13

14 Franchise Disclosure Form Annexure A Enquiries: Fazel Sulaman fazel@sab-t.co.za 14

15 Annexure B Franchise Disclosure Form Organogram depicting the support system in place for Franchisees The Franchisee who introduced you You WealthNet Head Office Client Service Centre Branch Support & Presenters Other Franchise Owners Virtus Financial Services 15

16 Step 1 Choose your Products and Benefits: Virtus Investment Plan and/or Gold Insured Benefits and/or Funeral & Beef Benefit and/or Franchise Opportunity Become A Wealth Catcher! Catch the Opportunity! Step 2 Share WealthNet Maximus Flexible with other people and start making money! Share WealthNet Maximus Flexible with people and if they Catch it! and sign up, you start earning an income based on their choice of products and benefits. Step 3 Help new members to pass WealthNet Maximus Flexible on to others and earn more money! Teach new people how to share the opportunity with others and to grow their business. Then you start earning an income from the people they introduce as well. CONTACT ME: Name:... Tel:... WealthNet No:... Client Service Centre: info@wealthnet.co.za WNPB002 April 2013 Registered Address: 3 rd Floor, Lakeside Building A, 2004 Gordon Hood Drive, Centurion, South Africa PO Box 12022, Centurion, 0046