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Compensation Plan

Compensation Plan. July 2005. INTRODUCTION. This presentation is designed to give you a comprehensive understanding of the ONE Group Compensation Plan. To start the Slide Presentation, click the Slide Show symbol which can be found near the bottom left corner of your computer screen.

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Compensation Plan

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  1. Compensation Plan July 2005

  2. INTRODUCTION This presentation is designed to give you a comprehensive understanding of the ONE Group Compensation Plan. To start the Slide Presentation, click the Slide Show symbol which can be found near the bottom left corner of your computer screen. If you are new to the Company, you can go through the Plan in an easy-to-follow sequence by clicking the “DOWN” arrow on your computer keyboard. In the same manner, you can go back through the slides by clicking the “UP” arrow. If you are generally familiar with the Compensation Plan you can navigate directly from the INDEX page. Clicking on the RED “back” button at the top right of any page will take you directly to the INDEX page.

  3. INDEX Levels of Membership Retirement Bonuses Representative Builder’s Bonus Health or Beauty Professional Loyalty Bonus Executive Pools Retail Outlet Bonus Payout Definitions Promotion Autoship or Business Protection Sponsor Tree Bonus Summary Getting Started Retirement Tree Customer & Retail Bonuses Off to a Fast Start Summary Sponsor Bonuses

  4. LEVELS of MEMBERSHIP • There are 3 levels of membership in the • ONE Group Compensation Plan • Preferred Customers • Individuals who want to buy product occasionally for personal use. • Affiliates • Retail outlets, including, e-tailers and professional home delivery businesses as well as health or beauty professionals who do not want to build a Multi-Channel Enterprise. • Representatives • Fundraising Organisations and those who want to build a Multi-Channel Enterprise. INDEX

  5. PREFERRED CUSTOMER • Is buying ONE Group products as a; • Guest of a Home Shopping Presentation. • Supporter of a fundraising effort. • Client/Patient of a Health or Beauty Professional Representative. • Casual shopper. • Pays no Joining Fee. • Buys products directly from ONE Group. • May upgrade to Representative at any time. • Sponsor receives up to 30% of the retail price of each order depending on its size. • Sponsor Bonuses are paid upline through the Sponsor Tree. Continue

  6. PREFERRED CUSTOMER Ordering Prices are retail (ex tax) before applicable discount. Prices are local currency for Australia, NZ, UK, USA & Canada. All other destinations are USD. Under $100 (£50) - Retail Price (No Discount) + (Shipping) $100 - $249 (£50 - £109) - Retail Price less 10% (Free Shipping) $250 + (£110 +) - Retail Price less 20%(Free Shipping) Orders under $100 (£50)attract a $4.95 (£2.95)Shipping Charge. BACK

  7. AFFILIATE • Health or Beauty Professionals who do not wish to earn bonuses. • All Retail Outlets. • Affiliates: • Do not pay a Joining Fee. • Do not receive Bonuses. • Buy products directly from ONE Group. • NB. If a Health or Beauty Professional wishes to build a business and/or take advantage of their clients/patients being able to order on their website and receive up to 30% of the retail price in bonuses, they must become a Representative. Continue

  8. AFFILIATE • Health or Beauty Professionals • Businesses that are predominantly operated on an appointment basis (chiropractors, nail technicians, naturopaths, massage therapists and the like), but may have some retail aspect to their business. • Must belong to an accredited Association. • May upgrade to Representative at any time by paying the Joining Fee. Continue

  9. AFFILIATE Ordering - Health or Beauty Professionals Prices are retail (ex tax) before applicable discount. Prices are local currency for Australia, NZ, UK, USA & Canada. All other destinations are USD. Under $100 (£50) - Retail Price less 10% + (Shipping) $100 - $249 (£50 - £109) - Retail Price less 20% (Free S/H) $250 - $579 (£110 - £249) - Retail Price less 30% (Free S/H) $580 - $5,999 (£250 - £2,599) - Retail Price less 40% (Free S/H) $6,000 + (£2,600 +) - Retail Price less 50% (Free S/H) Orders under $100 (£50)attract a $4.95 (£2.95)Shipping Charge. Continue

  10. AFFILIATE Retail Outlets (Conditions Apply) • Businesses that have a physical premises that retail to the public (health food stores, hairdressing salons, professional home-delivery businesses and professional e-commerce websites etc.) • The BV of ‘retirement’ orders by retail outlets, is included in the worldwide Loyalty Bonus & Executive Pools. • Only Senior Associates and above may sponsor a retail outlet, and only after it has been allocated to them. Continue

  11. AFFILIATE Ordering - Retail Outlets Prices are retail (ex tax) before applicable discount. Prices are local currency for Australia, NZ, UK, USA & Canada. All other destinations are USD. Orders up to $5,999 (£2,599) - Retail Price less 40% 66.67% Mark-up Orders over $6,000 (£2,600) - Retail Price less 50% 100% Mark-up Orders under $100 (£50)attract a $4.95 (£2.95)Shipping Charge. All other orders by retail outlets are freight free BACK

  12. REPRESENTATIVE • Wants to build a Multi-Channel Enterprise. • Pays a Joining Fee of AU$50.00 (US$35.00, £20) • Incl. AU$35.00 Administration Fee. • AU$10.00 for Training. • AU$ 5.00 to the David Suzuki Foundation. • Annual Renewal Fee - AU$25.00 (US$17.50, £10) • FREE if on AS or BP for previous 12 months. • Buys product directly from ONE Group for personal use. • Receives a ONE Group website and a MiEnterprize website. Continue

  13. REPRESENTATIVE Ordering Prices are retail (ex tax) before applicable discount. Prices are local currency for Australia, NZ, UK, USA & Canada. All other destinations are USD. Under $100(£50) - Retail Price less 10% + (Shipping) $100 - $249(£50 - £109) - Retail Price less 10% (Free S/H) $250- $579 (£110 - £249) - Retail Price less 20% (Free S/H) $580 - $899(£250 - £399) - Retail Price less 30% (Free S/H) $900 - $5,999 (£400 - £2,599)- Retail Price less 40% (Free S/H) $6,000 + (£2,600 +) - Retail Price less 50% (Free S/H) 50 – 99 PV, A/S or BP - Retail Price less 20% (Free S/H) 100 PV or more, A/S or BP - Retail Price less 30% (Free S/H) Orders under $100 (£50)attract a $4.95 (£2.95)Shipping Charge. Continue

  14. REPRESENTATIVE • Home Shopping Presentations • Representative does the presentation at the home of the Host. • Guests order product on supplied order forms and pay by credit card, cash or cheque. • Host receives an exclusive gift of Ambrosia Essence. • Representative enters orders on the web for delivery directly to the guest. • Representatives receive up to 30% of the retail price of each order depending on its size. • Sponsor Bonuses are paid upline through the Sponsor Tree. Continue

  15. REPRESENTATIVE • Fundraising • The Organisation, once allocated, is sponsored as a Representative. That organisation can be a school, sporting club, church group, service club or the like. • There is no cost to the organisation to join and no monthly maintenance is required for the organisation to receive bonuses. • Supporters of the organisation order products from ONE Group on the organisation’s website. www.organisation.mifundraiser.com • Products are delivered directly to the entity making the order. • The Organisation receives up to 30% of the retail price of each order depending on its size. • Sponsor Bonuses are paid upline through the Sponsor Tree. Continue

  16. REPRESENTATIVE • Health or Beauty Professionals • Businesses that are predominantly operated on an appointment basis (chiropractors, nail technicians, naturopaths, massage therapists and the like), but may have some retail aspect to their business. • Must belong to an accredited Association. • Pays a Joining Fee of AU$50.00 (US$35.00, £20) Continue

  17. REPRESENTATIVE Ordering - Health or Beauty Professionals Prices are retail (ex tax) before applicable discount. Prices are local currency for Australia, NZ, UK, USA & Canada. All other destinations are USD. Under $100 (£50) - Retail Price less 10% + (Shipping) $100 - $249 (£50 - £109) - Retail Price less 20% (Free S/H) $250 - $579 (£110 – £249) - Retail Price less 30% (Free S/H) $580 - $5,999 (£250 - £2,599) - Retail Price less 40% (Free S/H) $6,000 + (£2,600 +)- Retail Price less 50% (Free S/H) 50 – 99 PV A/S or BP - Retail Price less 20% (Free S/H) 100 PV or more A/S or BP - Retail Price less 30% (Free S/H) Orders under $100 (£50)attract a $4.95 (£2.95)Shipping Charge. Continue

  18. REPRESENTATIVE • Clients/Patients • The Clients/Patients of a Health or Beauty Professional who has joined as a Representative, may order products directly from ONE Group through the Professional’s website. www.onegrp.com/?username • The Health or Beauty Professional receives up to 30% of the retail price of each order depending on its size. • Sponsor Bonuses are paid upline through the Sponsor Tree. BACK

  19. GIVING BACK www.davidsuzuki.org Nature is our home. And just as we take care of our house, we also must take care of nature. Unfortunately, with six billion of us now living under one roof, we are gradually eroding the services nature provides – even though we depend on them for our quality of life and our future. Since 1990, the David Suzuki Foundation has worked to find ways for society to live in balance with the natural world that sustains us. Focusing on four program areas – oceans and sustainable fishing, forests and wild lands, climate change and clean energy, and the web of life - the Foundation uses science and education to promote solutions that help conserve nature. BACK

  20. DEFINITIONS Points. Each product has a point value assigned to it. Personal Volumeor PV is the total of the points of all the products purchased by a Member during a calendar month. PV is reset to ZERO at the beginning of each calendar month. Group Volume or GVis thetotal of a Member’s PV and the PV of all the Members in their Downline organisation. GV is reset to ZERO at the beginning of each calendar month. Active Representative.To be eligible to receive bonuses, Representatives must have a PV of at least 50 Points (approx. $80 (£45)depending on the products ordered) during a calendar month. Bonus Value or BVis the value in US Dollars assigned to each product for bonuses. If a Representative is entitled to 25% of an order whose BV is 60, the Representative would be entitled to a bonus of US$15.00. Continue

  21. BONUS VALUE A traditional manufacturer establishes a competitive wholesale price to allow for a 66.7% mark-up. In other words, the retail price less 40.0% equals the wholesale price. If you take away the cost of goods, expenses and a profit margin, you are left with an amount for marketing. Retail Price 40.0 % off retail 66.7 % mark-up on wholesale Wholesale Price Marketing Budget Expenses & Profit Margin Cost of Goods Continue

  22. BONUS VALUE A ONE Group Multi-Channel Enterprise does the same, however the marketing budget is paid to the Representatives as Bonuses. Retail Price 40% off Retail Wholesale Price Marketing Bonuses Expenses Cost of Goods Traditional Business ONE Group Continue

  23. BONUS VALUE Discount % The Bonus Value (BV) of a product, decreases as the Discount % increases 10% 20% 30% 50% 40% BONUS VALUE (BV) Money Received less Cost of Goods less Expenses & Margin = Amount for Bonuses in US Dollars Bonuses Expenses Cost of Goods Continue

  24. AUTOSHIP or BUSINESS PROTECTION Autoship or Business Protectionis an easy way to ensure that a Membership is active and eligible to receive all bonuses. ONE Group has made a point of keeping the cost of products at a competitive level while ensuring monthly requirements are not excessive. Consequently, the monthly commitment is just 50 Points, which equates to around $80.00 (£45)depending on the products ordered. The standard Autoship or Business Protection order is 2 x In-Liven. However, the content of an Autoship or Business Protection order may be changed by the Representative in the Member’s Area of the website up until 3 days before the Autoship or Business Protection order is due to be run on the computer. Continue

  25. AUTOSHIP or BUSINESS PROTECTION Autoship and Business Protection is only available to Representatives. Autoship.If a Representative signs up for a 50 point Autoship, they receive an immediate 20% off the retail price of orders from 50PV – 99 PV and 30% off the retail price of orders over 100PV. By signing for Autoship, the Member is committing to a regular monthly order. The monthly order will be sent out on the 5th, 10th, 15th or the 20th of each calendar month, depending on the date of their joining. Autoship orders are sent out regardless of the ordering activity by the Representative during the month. Business Protection.The same level of discount applies to Business Protection orders. By signing for Business Protection, a Representative is committing to receiving an order of at least 50 Pts on the 25th of every month if their monthly orders, to that date, do not exceed 50 Pts. INDEX

  26. SPONSOR TREE When a Representative sponsors (introduces) a new Customer, Affiliate or Representative to the Company, that new Member will always be placed front-line on the Sponsor Tree. Customers are ONLY placed front-line on theSponsor Tree so their orders always count for Sponsor Bonuses. Sponsor 3 1 2 4 5 6 Existing personally sponsored Rep New Representative New Customer Existing Affiliate INDEX

  27. RETIREMENT TREE As well as being front-line on the Sponsor Tree, a new Representative or Affiliate will also be placed front-line on the sponsoring Representative’s Retirement Tree. A Representative only has to build 3 Teams in the Retirement Tree to reach the top rank in the Compensation Plan. Once a new Representative or Affiliate has been placed front-line on the Retirement Tree, the sponsoring Representative will receive an e-mail from the Company giving them 30 days to move the new Representative or Affiliate to an existing Team. If the new Representative or Affiliate is not moved within the 30-day period, they will remain front-line to the sponsoring Representative in the Retirement Tree. Continue

  28. RETIREMENT TREE Before Move After Move Sponsor Sponsor 1 2 4 3 5 1 2 3 4 5 Existing Representative Existing Affiliate New Representative Continue

  29. RETIREMENT TREE 1 3 9 27 Number of Representatives on each line if everyone Sponsors just three people 81 243 729 Total Representatives and Affiliates 3280 2187 INDEX

  30. CUSTOMER BONUS A Customer Bonus of up to 30% of the retail value of orders by Preferred Customers will be paid to the Sponsoring Representative and Sponsor Bonuses will be paid upline from there, based on the BV of a 30% discount order. The Customer Bonus is paid daily. e.g. A parent, supporting the fundraising efforts of a school, places an order of $90 (£40)retail. The parent would receive no discount, but the school would receive 30% or $27 (£12). If the parent placed an order of $200 (£90)retail. The parent would receive 10% discount and the school would receive 20% or $40 (£18). Continue

  31. CUSTOMER BONUS This is an example of the Customer Bonus for a $200 (£90)order by a Preferred Customer The Sponsor earns 20% of the order - $40 (£18) Sponsor Bonuses are paid upline from here Preferred Customer receives 10% Discount $200 (£90)order Continue

  32. RETAIL BONUS A Retail Bonus of 5% will be paid to an active Representatives who has sponsored a retail outlet,on the retail value of Retirement Orders of less than $6,000 (£2,600). Normal Retirement Bonuses will be paid based on the BV of a 50% discount order. If the Sponsoring Representative is not active, no Retail Bonus will be paid and the Retirement Bonuses will be based on a 40% discount order. e.g. A shop that joined as an Affiliate 3 months ago, places an order for $2,500 (£1,000) (retail value). The shop pays $2,500 (£1,000) less 40% = $1500 (£600). The Representative who has the allocation receives a Retail Bonus of $125 (£50) (5% of the retail value). Retail Bonuses are generated with the Retirement Bonuses and becomes ‘cleared funds’ as soon as the order has been paid for. The is no Retail Bonus paid on orders over $6,000 (£2,600). Continue

  33. RETAIL BONUS Sponsor Tree Retirement Tree Active Sponsor receives 5% or $125 (£50) Retirement Bonuses are paid based on a 50% discount order Retail Outlet $2,500 (£1,000)order INDEX

  34. SPONSOR BONUSES 5% Man. Exec. or higher ME Sponsor Bonuses are paid upline to active Representatives on the BV of orders by Preferred Customers, regardless of their time with ONE Group, as well as new Affiliates and Representatives in their first 30 days with the Company. In fact, depending on their rank, a Representative can be paid from 25%-5% of the BV of orders up to seven (compressed) levels deep. Sponsor Bonuses are calculated daily. After the 15-day refund period has lapsed, proceeds are paid immediately into the Representative's Bonus Account where they will have immediate access to the funds. M 5% 2nd Exec. or higher E Executive or higher 10% E M 10% Manager or higher M 15% Snr Assoc. or higher M 15% Associate or higher A Sponsor (Any Rank) A 25% New Member Continue

  35. SE SPONSOR BONUSES 5% 10% The first ME or SE above this SE would also receive 5% ME 10% E 15% M A Senior Executive Managing Executive This is an example of the Sponsor Bonus payout (%) for this 100 BV order 15% SA Executive Manager 25% A Senior Associate 100 BV Order Associate INDEX

  36. RETIREMENT BONUSES Retirement Bonuses are paid to Active Representatives according to rank, on the BV of all orders made by downline Representatives and Affiliates who have been with ONE Group for more than 30 days. Retirement Bonuses are paid on the 16th day of the following month and proceeds are paid immediately into the Representative's Bonus Account where they will have immediate access to the funds. Retirement Bonuses are based on compressed generations according to rank. Continue

  37. RETIREMENT BONUSES SE 3% + 3% + 3% + 3% 3% + 3% + 3% + 3% ME 3% E 3% + 3% + 3% + M 3% 3% + 3% + SE ME E M SA A A 100 BV Order Senior Executive Managing Executive SA An example of the Retirement Bonus payout (%) for this order Executive Manager A Senior Associate Associate Continue

  38. RETIREMENT BONUSES SE 3% 3%+ 3%+ 3%+ ME 3% 3%+ 3%+ E 3%+ 3% 3%+ M 3% 3%+ A Senior Executive An example of the Retirement Bonus payout (%) for this order Managing Executive SA 3% 3%+ Executive Manager A 3% Senior Associate SE ME E M SA A Associate 100 BV Order INDEX

  39. BUILDER’S BONUS 15% of BV, generated through the Sponsor Tree, worldwide, is allocated to the Builder's Bonus. Active Representatives receive US$400.00 for every 3 new Representatives (who each achieve 250 Points or more) they sponsor in the same calendar month. There are no limits to the number of shares a Representative may receive. The Builder’s Bonus is run on the 16th day of the following month. To qualify, the 3 new Representatives must join and place a 250 + PV orderin the same calendar month 250 PV 350 PV 250 PV INDEX

  40. LOYALTY BONUS 19% of worldwide Retirement BV is allocated to the Loyalty Bonus. Active Representatives, on Autoship or Business Protection, receive US$70.00 each month they have 3 personally sponsored Representatives on at least 50 PV Autoship or BP and who have been with ONE Group for more than 30 days. There are no limits to the number of shares a Representative may receive each month.The Loyalty Bonus is paid on the 16th day of the following month. Hypothetical Example If a Representative has 9 personally sponsored Representatives on BP or AS they will receive US$210.00 (3 shares) 86 PV 262 PV 55 PV 1 Share INDEX

  41. EXECUTIVE POOLS In addition to the Retirement Bonuses, Active Executives, Managing Executives & Senior Executives will each receive a share of their respective Pool. The Executive Pools are paid on the 16th day of the following month. Qualified Executives will receive 1 share of 4% of worldwide Retirement BV. Qualified Managing Executives will receive 1 share of 5% of worldwide Retirement BV. Qualified Senior Executives will receive 1 share of 6% of worldwide Retirement BV. INDEX

  42. BONUS PAYOUT Sponsor Bonuses, as well as Customer Bonuses are run on a daily basis. However, because there is a 15-day money-back guarantee on product orders, the bonuses will only appear in the Member’s “UNCLEARED FUNDS” account. Once the 15-day guarantee period has lapsed, funds will be moved into the Member’s CLEARED FUNDS account where they will have immediate access to their money. All other bonuses, including Pools, are run on the 16th of the following month, so the funds will go straight into their CLEARED FUNDS Account. Sponsor Bonus & Customer Bonus Retirement, Builder’s, Loyalty and Retail Bonuses as well as the Executive Pools DIRECT DEPOSIT UNCLEARED FUNDS After 15 Days CLEARED FUNDS PRODUCT PURCHASES INDEX

  43. PROMOTION Bonuses are paid to active Representatives according to their rank. Ranks are based on the number of active personally sponsored Representatives, their own Group Volume as well as the Group Volume of the Teams in their Retirement Tree. Once promoted, a Representative will always keep their rank, however they will only be paid bonuses at the rank they are qualified for. In other words, if a Representative attained the rank of Executive in March, but only qualified at Manager in May, they will still be called an Executive, but will be paid as a Manager. The requirements for each rank can be seen in the Bonus Summary table Continue

  44. PROMOTION TO MANAGER This is the normal way to attain the rank of Manager. For a faster way click Minimum of 2,500 total Group Volume M A Manager needs at least 3ActivePersonally Sponsored Representatives. Personally Sponsored Representative Affiliate placed by Upline Representative Representative placed by Upline Representative 3 Teams with a minimum of 500 Group Volume each INDEX

  45. BACK INDEX Continue

  46. ASSOCIATE Maintenance & Promotion Retirement Bonus Summary 3% Maintenance 50 PV / Month 3% Customer Bonuses 2 Generations of Associate or higher Sponsor Bonuses 2 Compressed levels 25%, 15% US$400 Builder’s Bonus US$70 Loyalty Bonus Continue

  47. SENIOR ASSOCIATE Maintenance & Promotion Retirement Bonus Summary 3% 3% Maintenance 50 PV / Month # of active personally sponsored Representatives 2 Minimum # of Teams 2 Minimum Team GV 100 Minimum Total GV 500 3% 3% 3% Customer & Retail Bonuses 2 Generations of Associate or higher + 3 Generations of Snr. Assoc. or higher Sponsor Bonuses 3 Compressed levels 25%, 15%, 15% US$400 Builder’s Bonus US$70 Loyalty Bonus Continue

  48. MANAGER Maintenance & Promotion Retirement Bonus Summary 3% 3% 3% Maintenance 50 PV / Month # of active personally sponsored Representatives 3 Minimum # of Teams 3 Minimum Team GV 500 Minimum Total GV 2,500 3% 3% 3% 3% 3% 3% Customer & Retail Bonuses 2 Generations of Associate or higher + 3 Generations of S. Assoc. or higher + 4 Generations of Manager or higher Sponsor Bonuses 4 Compressed levels 25%, 15%, 15%, 10% US$400 Builder’s Bonus US$70 Loyalty Bonus Continue

  49. EXECUTIVE Maintenance & Promotion Retirement Bonus Summary 3% 3% 3% 3% Maintenance 50 PV / Month # of active personally sponsored Representatives 5 Minimum # of Teams 3 Minimum Team GV 2,000 Minimum Total GV 10,000 3% 3% 3% 3% 3% 3% 3% 3% 3% Customer & Retail Bonuses 2 Generations of Associate or higher + 3 Generations of S. Assoc. or higher + 4 Generations of Manager or higher + 4 Generations of Executive or higher Sponsor Bonuses 6 Compressed levels 25%, 15%, 15%, 10%, 10%, 5%, 4% Executive Pool US$400 Builder’s Bonus US$70 Loyalty Bonus Continue

  50. MANAGING EXECUTIVE Maintenance & Promotion Retirement Bonus Summary 3% 3% 3% 3% 3% Maintenance 50 PV / Month # of active personally sponsored Representatives 7 Minimum # of Teams 3 Minimum Team GV 5,000 Minimum Total GV 25,000 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% Customer & Retail Bonuses 2 Generations of Associate or higher + 3 Generations of S. Assoc. or higher + 4 Generations of Manager or higher + 4 Generations of Executive or higher + 4 Generations of Man. Exec. or higher Sponsor Bonuses 7 Compressed levels 25%, 15%, 15%, 10%, 10%, 5%, 5% 5% Executive Pool US$400 Builder’s Bonus US$70 Loyalty Bonus Continue

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