COMPENSATION PLAN (MALAYSIA)

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COMPENSATION PLAN

(MALAYSIA)

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THE

USANA COMPENSATION PLAN

2 PANTONE 7543 C C 23M11Y8 K21 BLACK C 0 M0 Y0 K100 PANTONE 287 C C 100M72 Y2 K12 WHITE C 0 M0 Y0 K0

The USANA Compensation Plan encourages teamwork and ensures a fair distribution of income among Distributors, so you can build a stable residual income as you build a strong base of Distributors and customers.

STARTING YOUR USANA

BUSINESS

You start by purchasing a Starter Kit, and completing the proper paperwork. Your sponsor places you in an open position in his or her team structure.

As a USANA Distributor, you may retail products to your friends, enroll them as Preferred Customers (PC), or sponsor them as Distributors too. In Malaysia, USANA allows you to build up to four Distributor teams (see Figure 1).

Figure 1: Distributors and Preferred Customers

AREAS OF INCOME:

You can earn income in a number of ways with the USANA Compensation Plan:

(1) Retail Profit

(2) Front Line Commission (3) Weekly Commissions (4) Incentives

(5) Leadership Bonus

Your income is primarily determined by the Sales Volume (SV) generated by your teams. Each product has a point value, and the points from product sales will accumulate as you and your team members purchase products for personal use and to re-sell to customers. Each Distributor’s purchases

generate Personal Sales Volume (PSV) and the combined PSV of all Distributors and Preferred Customers in a team becomes your Group Sales Volume (GSV).

1. RETAIL PROFIT

As a Distributor, you can purchase products at our special Preferred Price, and when you sell these products to your customers at retail price, you earn an immediate Retail Profit. Selling is the best way for you and your new team members to earn immediate income while building a long-term base of satisfied customers for your business.

2. FRONT LINE COMMISSION

You earn a Front Line Commission equal to 5% of the Sales Volume of each order placed by Malaysian Distributors you personally sponsored, as long as the order is 100 points or more.

Commissions are awarded to you in US-Dollar Commission Volume Points (CVP), which are converted to your local currency.

For example, if you sponsor Ali, Bob, and Chan, and each of them places an order of 200 points this week, you will receive a Front Line Commission of 30 CVP:

5% x (200 + 200 + 200) = 30 CVP

You receive Front Line Commission no matter where Ali, Bob, and Chan are placed in your network, as long as you have personally sponsored them.

3. WEEKLY COMMISSION

You earn Weekly Commission based on the Group Sales Volume (GSV) each of your teams generates in a week. In accumulating GSV points, we do not consider the number of level of referrals, nor from where in the world the points come.

USANA’s Compensation Plan is all about symmetry and teamwork, so we compare the points generated each week by one or more teams against another. The team generating fewer points is called your small team, which means it’s where you need to focus in order to match the performance of the large team. Either team can be your small team, and

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USANA COMPENSATION PLAN

3 PANTONE 7543 C C 23M11Y8 K21 BLACK C 0 M0 Y0 K100 PANTONE 287 C C 100M72Y2 K12 WHITE C 0 M0 Y0 K0

they may switch back and forth as you build your business. You earn 20% of the small team volume as Weekly Commission, when making comparisons in three different ways, called “Business Centres” (BC):

First Business Centre (BC1): T{1+3} vs T{2+4}

We compare the points generated by the odd teams against the even teams.

Second Business Centre (BC2): T1 vs T3

We compare the points generated by the two odd teams.

Third Business Centre (BC3): T2 vs T4

We compare the points generated by the two even teams. When both teams under comparison have exactly the same volume, then either can be considered the small team. Your Weekly Commissions are awarded in CVP and may be kept for you if your week’s income does not reach 25 CVP. The examples below illustrate how your Weekly Commission is calculated when you choose to build two, three or four teams.

3.1 EXAMPLES SHOWING HOW WEEKLY

COMMISSION IS CALCULATED

Figure 2: Weekly Commission from Four Teams

Say you have built four teams (under Ali, Bob, Chan, and

Devi) as in Figure 2, with Group Sales Volume (GSV) of 2000, 1000, 3000 and 1500 points respectively in a particular week. Your Weekly Commission will be calculated as follows:

BC1:

T{1+3} at 3,000 points is the small team, so you earn 20% x 3,000 = 600 CVP

BC2:

T3 at 1,000 points is the small team, so your earn 20% x 1,000 = 200 CVP

BC3:

T2 at 1,500 points is the small team, so you earn 20% x 1,500 = 300 CVP

Your Weekly Commission is 600 + 200 + 300 = 1,100 CVP.

Figure 3: Weekly Commission from Three Teams

Figure 3 shows an example where you build 3 teams. Your Weekly Commission will be calculated as follows:

BC1:

BC2:

T3 at 1,000 points is the small team, so your earn 20% x 1,000 = 200 CVP

BC3 does not earn you Weekly Commission because T4

generates no volume.

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USANA COMPENSATION PLAN

Figure 5 above shows an example where you have built two teams—Ali’s with 1,400 points and Bob’s with 1,500 points for the week, and you are paid 280 CVP (=20% x 1,400) in Weekly Commission.

Since you received commission for all the points from the small team (T1), it will carry 0 rollover points. But there are still 100 unmatched points remaining on the large team (T2), so these will rollover to the next commission week. Points roll over into subsequent weeks indefinitely, until they are matched and paid, or until your Business Centre shuts down (see Section 6.2 on keeping your Business Centres open).

3.3 MAXIMISE A BUSINESS CENTRE

When the small team in a comparison achieves 5,000 points in the week, you have “maximised” that Business Centre. Your Weekly Commission remains at 1,000 CVP for that Business Centre even if the small team volume exceeds 5,000 points.

For example: If your small team volume is 6,000 points, you do not earn 20% x 6,000 = 1,200 CVP, because it has exceeded the maximum for each Business Centre.

Note: If your small team volume has 5,000 points or more that comes from the week’s Auto Orders (see Section 7), you receive a bonus of 250 CVP, which takes your Weekly Commission to 1,250 CVP for that Business Centre.

Therefore, to earn more Commission after maximizing all three of your Business Centers, you will have to open additional Business Centers (BC4, BC5...etc.)

3.4 OPEN ADDITIONAL BUSINESS

CENTRES

When you maximise a Business Centre, you will be issued an electronic “Additional-Business-Centre Certificate”, which allows you to open a new Business Centre at an eligible position in your organisation.

You can receive a total of up to two Certificates for each existing Business Centre you have maxed, and the Certificates do not expire.

Opening new Business Centres at the bottom of your organisation not only allows you to build new teams and

Figure 4: Weekly Commission from Two Teams

Figure 4 shows that by only building two teams, you can still earn a good Weekly Commission, as shown below:

BC1:

BC2 and BC3 do not earn you Weekly Commission, as T3

and T4 generate no volume.

So your Weekly Commission is 600 CVP.

3.2 ROLLOVER

As you can see from the examples above, the GSV of your teams aren’t always going to match, but that’s fine, because USANA allows any extra GSV up to 5,000 points from each team to rollover to the next commission week!

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USANA COMPENSATION PLAN

5 PANTONE 7543 C C 23M11Y8 K21 BLACK C 0 M0 Y0 K100 PANTONE 287 C C 100M72Y2 K12 WHITE C 0 M0 Y0 K0

add to your Commissions, it allows you to help others in your team by being involved at a deeper level. And as Figure 6 below shows, points from your additional Business Centres also flow through and benefit your earlier Business Centres.

Figure 6: Additional Business Centre

3.5 PREFERRED CUSTOMERS

Another way you accumulate Group Sales Volume is to sponsor Preferred Customers and add them to any one of your four teams (see Figure 1). Preferred Customers purchase products directly from USANA at our Preferred Pricing and enjoy Auto Order savings, but they do not earn commissions. While you earn no Retail Profit from sales made to Preferred Customers, their orders do generate points, which are added to the team to which they have been assigned.

Finally, you may assign any Personal Sales Volume in excess of what you need to stay qualified to any one of your four teams, to add to your commission.

4. INCENTIVES

No matter your rank, you can be rewarded with luxury travel, attractive prizes and gifts, and even cash awards in USANA’s generous incentive programme.

5. LEADERSHIP BONUS

Each week, 3% of the global Sales Volume is divided among qualifying Gold Directors and higher-ranked Distributors. Your actual share of the pool depends on your rank, and on the number of Business Centres you “maximised” in consecutive weeks.

You will have to meet conditions of leadership to be eligible for this Bonus.

6. QUALIFYING FOR COMMISSION

6.1 OPENING BUSINESS CENTRES

To start to earn commissions and bonuses, you must first open your Business Centres.

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To open BC1 only, generate 200 points in Personal

Sales Volume for your personal use and/or selling to your customers.

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To open three Business Centres (BC1, BC2, and BC3), you must generate 400 points in Personal Sales Volume

within your first six Fridays as a new Distributor. Should you fail to do so, you will lose BC2 and BC3, and henceforth earn Weekly Commission from only BC1. You can no longer earn the additional Weekly Commissions from BC2 (20% of the small team volume from T1 vs T3) or BC3 (20% of the smaller team volume from T2 vs T4). Personal Sales Volume points to open one or three Business Centres may be satisfied in a single order at the time of enrollment, or accumulated through many orders. But if your initial order is at least 400 points, any points above the first 200 will be equally divided and automatically added as Team 1 and Team 2 volume for computing your Weekly Commission.

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To open an Additional Business Centre using your Certificate, send a written request to USANA with information about where you would like the new Business Centre to be placed, together with an order for 200 points of Personal Sales—which must be in addition to the volume required to keep your existing Business Centres open (refer section 6.2).

Qualified Maxed BCs 1 2 3 etc.

How Your Share is Calculated 1= 2+1= 3+2+1= : Your Share 1 share 3 shares 6 shares :

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USANA COMPENSATION PLAN

6.2 KEEPING BUSINESS CENTRES OPEN

Only opened Business Centres are eligible to receive Commissions and Bonuses, and to enjoy rollover points. To keep open BC1 only, you must achieve at least 100 points in Personal Sales Volume during each four-week rolling period.

To keep all your Business Centres open, you must achieve at least 200 points in Personal Sales Volume during each four-week rolling period.

A 4-week rolling period equals four pay periods (i.e., 4 Fridays) after you place a product order of 100 points or more.

7. SAVE WITH AUTO ORDERS

An Auto Order is an order you pre-place with us to be processed regularly and automatically over a weekend. The products you order, and the frequency with which it processes, are all up to you.

You receive an additional 10% off the already-low Preferred Price on qualifying products purchased through Auto Order.

SHARER 50 Commission Volume Points (CVP) for one week

BELIEVER 100 CVP for one week

BUILDER 200 CVP for one week

ACHIEVER 400 CVP for one week

DIRECTOR 600 CVP for one week

BRONZE DIRECTOR 800 CVP for one week

SILVER DIRECTOR 1,000 CVP for one week

GOLD DIRECTOR 1,000 CVP for four consecutive weeks

RUBY DIRECTOR 2,000 CVP for four consecutive weeks

EMERALD DIRECTOR 3,000 CVP for four consecutive weeks

DIAMOND DIRECTOR 4,000 CVP for four consecutive weeks

1-STAR DIAMOND DIRECTOR 5,000 CVP for four consecutive weeks

LEADERSHIP ADVANCEMENT

USANA has created leadership ranks to help celebrate your short-term achievements as you work towards your ultimate goals. Use the chart and the experience of previous Distributors to establish goals for you and your team members.