Compensation Plan Details

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1 Compensation Plan Details Introduction SendOutCards offers multiple ways of earning an income, all of which involve hard work and effort, but offer great rewards as well. There are two ways to participate in SendOutCards: As a customer or as a distributor. This document discusses being a distributor and earning an income through SendOutCards Opportunity. Although you have several ways to earn in SendOutCards, you have the option to participate on multiple levels, and grow your business at your own pace. You may participate in the earning side of SendOutCards by enrolling as a distributor for a one- time fee of $50 and paying an annual renewal of $59. As a distributor you have the opportunity to participate in the compensation program. SendOutCards offers multiple packages that may be purchased to help you grow your business at an accelerated rate. (Note: All amounts stated are in U.S. Dollars for both purchase prices, bonuses and commissions issued to participating distributors. International residents participation with SendOutCards is based upon acceptance of applications in the U.S. under U.S. laws and regulations with the understanding that SendOutCards conducts all business in U.S. currency. International residents agree to this condition when signing up to participate with SendOutCards. See SendOutCards Policies and Procedures and Terms and Conditions for additional details.) How Do I Make Money with SendOutCards? As stated, there are several methods of earning an income with SendOutCards. We will briefly outline them here before going into greater detail in a later section. Customer Direct Retail Profits Sell your services directly to customers by sending a card, gift or one of our Photo Store products. You send the item to them from your account and collect the money directly from them. You may also sell Splash Pak codes and collect the profit directly. Customers may directly access and purchase individual cards that have been shared on Sendcere. These cards can be purchased for $1.98. Fast Start Bonus This one- time bonus is paid out twice a week and is paid to new distributors who obtain 3 Preferred Customers within their first 30 days of becoming a distributor, which may include their own Preferred subscription. Product Commission & Customer Acquisition Bonus These one- time bonuses are paid out twice a week and are paid to distributors who advance through the ranks and demonstrate ability to help their downline distributors grow their businesses. There are many ways to earn this money. As you advance in rank in the system, Customer Acquisition Bonuses increase and you are rewarded for helping more people sell products, gather and train customers and/or distributors. Compensation Plan Details Page 1 Updated 3/2/2016

2 Monthly Manager Bonus Pool This monthly bonus consists of one percent (1%) of all global customer volume this bonus is split equally between all qualified participant shares. Customer Commission This monthly commission is paid based on retail sales to customers; more customers buying your products means more income. Personal & 7- Level Downline Commission This monthly commission is based on volume sold on levels 0-7 of a distributor s organization. Downline Infinity Commission This monthly commission is based on the volume sold in your downline. This bonus pays to unlimited levels depending on how your organization is coded to you as a leader. What is Qualifying Volume versus Commissionable Volume? PCQV (Personal & Customer Qualifying Volume) is comprised of all package, product and point purchases made by you and your customers. You do not earn commissions on this volume, but it helps accomplish qualification requirements. A distributor may only contribute up to 31 in personal volume toward this number each month. GQV (Group Qualifying Volume) is comprised of all point, product and package purchases made by sponsored distributors, their customers and downline, and also encompasses PCQV up to the rank of Manager. You do not earn commissions on this volume, but it helps rank advancement qualification requirements. Commissionable Volume is comprised of all point purchases made by either a distributor or their downline organization. $0.31 of each point purchased counts towards a distributor s Commissionable Volume; point purchases are made up of subscriptions and one time point purchases. SOC Photo Store orders also add to volume, in addition to other gift offerings. The sum of this volume is commissionable and paid on appropriately. How Do I Qualify for and Earn Bonuses/Commissions? There is one main requirement for a distributor to be eligible to earn the majority of bonuses and commissions available in the SendOutCards Compensation Plan. A distributor is required to be Q Qualified based on their current rank from the chart below. The chart shows the recommended way to achieve the qualification, the monthly total PCQV (Personal & Customer Qualifying Volume) requirement and the amount your own subscription may contribute to meet the volume requirement. Distributors must be Q Qualified at their highest rank to be paid at their highest rank. Once a distributor achieves a rank they will always maintain that title, however, they will only be paid up to their qualifying rank based on the below requirements. Compensation Plan Details Page 2 Updated 3/2/2016

3 All distributors are considered Q Qualified for bonuses and commissions within their first 30 days of enrollment, excluding rank advancement. Rank Recommended Method Personal & Customer Sales Amount Distributor May Contribute Distributor 3 Preferred Customers 93 PCQV 31 Manager You + 3 Preferred Customers 124 PCQV 31 Sr. Manager You + 6 Preferred Customers 217 PCQV 31 Executive You + 9 Preferred Customers 310 PCQV 31 Sr. Executive You + 12 Preferred Customers 403 PCQV 31 Eagle You + 15 Preferred Customers 496 PCQV PCQV Qualifies distributor to be paid on Level 0 93 PCQV Qualifies distributor to be paid on Levels 1-7 Q Qualified Qualifies distributor to be paid CAB, Infinity Commissions & Bonus Pool (Note: All qualifications for any bonus or commission are based on U.S. Eastern Time Zone. Any special promotions for contests or other events may have different requirements and will be specified.) Customer Direct Retail Profits You can earn a retail profit when you sell cards, gifts, Photo Store products, and/or Splash Pak codes directly to your customer, who then pays you directly. You use your personal points, expense or credit card, and then collect the money directly from your customer as way of payment. Customers may purchase a card shared through Sendcere for $1.98. The distributor earns $0.93 in PCQV and $1.98 is paid through the Customer Commission structure. Splash Paks may be purchased for $150, which includes 10 Preferred Customer Splash Pak codes. Each code comes with 100 bonus points and 2 stamps. The value of 100 bonus points, if purchased at the Preferred Customer price, is $0.39 each or more than a $39 value per Preferred Customer Splash Pak code. If you sell a Preferred Customer Splash Pak code for $39 then you earn $24 from Customer Direct Retail Profits. International upgrades are available so your customer can send cards outside of the U.S. and international postage is included. Mini Splash Paks may be purchased for $78, which includes 10 Mini Splash Pak codes. Each code comes with 25 bonus points and 2 stamps. The value of the 25 bonus points, if purchased at the Preferred Customer price, is $0.39 each or more than a $9.75 value per Mini Splash Pak code. If you sell a Mini Splash Pak code for $9.75, then you earn $2.95 from Customer Direct Retail Profits. International upgrades are available so your customer can send cards outside of the U.S. and international postage is included. (Note: For residents other than the U.S., should you engage in retail sales, you are responsible for any sales or other taxes (GST/HST/VAT/IVA) to be collected and must remit these on your own to your country s tax authorities.) Compensation Plan Details Page 3 Updated 3/2/2016

4 Cost Sponsor Manager Sr. Sr. Executive Manager Executive Eagle Personal Bundle $195 $70 $50 $25 $15 $5 $2 Marketing Bundle $395 $140 $100 $50 $30 $10 $5 Business Bundle $795 $280 $200 $100 $60 $20 $10 Addition Multi- User Account $99 $20 $12 $8 $5 $5 $5 Personal Bundle Renewal $49 $7 $5 $5 $1 $1 $1 Marketing Bundle Renewal $98 $14 $10 $10 $2 $2 $2 Business Bundle Renewal $150 $21 $15 $15 $3 $3 $3 Sendcere Card Sharing Kit- 10 $25 $5 $1 $1 $1 $1 $1 Sendcere Card Sharing Kit- 70 $150 $35 $5 $5 $5 $5 $5 Sendcere Dual Sharing Kit $150 $35 $5 $5 $5 $5 $5 Mini Splash Pak Accounts $78 $10 $3 $3 $3 $3 $3 Custom Brand Manager $149 $40 $15 $20 $15 $10 $0 Custom Brand Manager Renewal $49 $7 $5 $5 $1 $1 $1 SOC Memory Vault $99 $12 $6 $4 $4 $3 $1 SOC Memory Vault Unlimited $199 $24 $12 $8 $8 $6 $2 Handwriting Font & Signatures $49 $7 $5 $5 $1 $1 $1 MRM Training Portal $99 $20 $12 $8 $5 $5 $5 MRM Training Portal Renewal $49 $7 $5 $5 $1 $1 $1 Personal Bundle to Marketing Bundle Upgrade $200 $70 $50 $25 $15 $5 $3 Personal Bundle to Business Bundle Upgrade $600 $210 $150 $75 $45 $15 $8 Marketing Bundle to Business Bundle Upgrade $400 $140 $100 $50 $30 $10 $5 Marketing Distributor to Business Bundle $400 $140 $100 $50 $30 $10 $5 Silver Package to Marketing Bundle Upgrade $50 $7 $5 $5 $1 $1 $1 Silver Package to Business Bundle Upgrade $450 $147 $105 $55 $31 $11 $6 Gold Package to Business Bundle Upgrade $345 $120 $85 $42 $25 $8 $5 Fast Start Bonus This one- time bonus is paid out twice a week and is paid to new distributors who obtain 3 Preferred Customers on a $39 subscription within their first 30 days of becoming a distributor, which may include their own Preferred subscription. (Note: If any of the orders/subscriptions are cancelled within the first 60 days, the bonus will be deducted from future bonus and commission earnings.) Compensation Plan Details Page 4 Updated 3/2/2016

5 Product Commission & Customer Acquisition Bonus Product Commissions and Customer Acquisition Bonuses are paid to the upline encoded sponsor and Manager through Eagle on new distributors brought in with the purchase of a product or bundle. Q Qualification is not required to earn the Product Commissions, however, encoded leaders must be Q Qualified at their highest qualified rank in order to receive Customer Acquisition Bonuses. If a distributor holds multiple coding, they will receive up to the amounts for all coding they hold based on their Q Qualification. For example, if a distributor is a Sr. Manager who enrolls a new Distributor with a Marketing Bundle on their first level, they will earn a $140 Product Commission. If they are Q Qualified for the Sr. Manager rank, they will also receive the Manager and Sr. Manager Customer Acquisition Bonus, which is an additional $150. The remaining Customer Acquisition Bonuses would be paid to the leaders above them who hold the additional coding if they are Q Qualified at their rank. Distributors will earn Customer Acquisition Bonuses on customer product and bundle purchases based on their rank and Q Qualification. For example if an Executive rank distributor sells a Marketing Bundle to a customer and the Executive is Q Qualified at the Executive rank they will earn the Product Commission of $140, Manager Bonus, Sr. Manager Bonus and Executive Bonus, which is an additional $180. The remaining Customer Acquisition Bonuses would be paid to the leaders above them who hold the additional coding, if they are Q Qualified at their rank. Monthly Manager Bonus Pool The Monthly Manager Bonus Pool is made up of 1% of all global customer volume and is divided and paid to active participants each month. To qualify for the Monthly Manager Bonus Pool you must be a Manager or above and be Q Qualified at your highest achieved rank (see bonus qualification requirements above). In addition to these prerequisites, you must complete A or B below. Multiple shares of the Monthly Manager Bonus Pool may be earned in a month. Option B may be earned multiple times in a month. A. Personally enroll a total of 10 or more new Preferred Customers with $39 subscription during the calendar month. Customer does not count as a Preferred Customer until the $39 subscription runs for the first time. Any customer who has never had a subscription previously that becomes a Preferred Customer by adding a $39 subscription will be counted as a new Preferred Customer for the Monthly Manager Bonus Pool. Any customer who has previously had a subscription of any kind, active or inactive, and then upgrades to a Preferred Customer by purchasing a $39 subscription will not count as a new customer for Monthly Manager Bonus Pool qualification. B. Rank advance to any rank, Manager or above, for the first time and receive a share in the pool each time you rank advance. For example, if you become a Manager for the first time in a month and then rank advance to Sr. Manager in the same month, you will receive two shares of the pool that month. Compensation Plan Details Page 5 Updated 3/2/2016

6 Example 1 Sally signed up as a new distributor on April 1 st, personally sponsored three new distributors and rank advanced to Manager. Sally personally enrolled 10 new Preferred Customers. Sally has a personal $39 subscription that ran in April. Sally will receive two shares of April s Monthly Manager Bonus Pool under options A and B. Example 2 Barbara signed up as a Distributor in March and personally sponsored one Distributor. In April, Barbara enrolled 2 new Distributors, one of which became Q Qualified. The other signed up 2 new Preferred Customers. Barbara set up 6 new Preferred Customers and has a personal $39 subscription. Barbara became a Manager in April. Barbara would receive 1 share of the pool for becoming a Manager in April under option B. Example 3 - John is a Sr. Manager and enrolled 3 new Distributors who each became Q Qualified. John also enrolled 10 new Preferred Customers. John qualified for the Monthly Manager Bonus Pool under option A. Customer Commission Customer Commissions are paid on purchases made by customers, or a distributor s personal purchases of points priced at $0.39 or greater. All distributors must have 93 in PCQV in order to receive the full 20% Customer Commission. If a distributor does not have 93 in PCQV, but at least 31 in PCQV, they will earn 5% in Customer Commissions for points priced at $0.39 or greater. PCQV Qualified Percentage Amount Distributor May Contribute 31 5% on points purchased at $0.39 or higher % on points purchased at $0.39 or higher 31 Customers may purchase points on a Pay As You Go basis or subscription using the chart below: Number of Points Retail Price Per Point Volume Per Point 1-99 $0.66 $ $0.59 $ $0.49 $ $0.43 $0.31 Retail Subscription (20 points minimum) $0.49 $0.31 Preferred Subscription (100 points minimum) $0.39 $0.31 When points are purchased at $0.39 or greater, you earn Customer Commissions on the full amount paid per point. Any subscriptions prior to February 1, 2016 where points are purchased at $0.31 each do not receive Customer Commission because the points are purchased at the wholesale price ($0.31). The volume on $0.31 points is paid in the Personal & 7- Level Downline Commission. No additional volume is paid on these purchases. Let s look at a couple of examples. Example 1: Sally has 10 customers on a $9.80 subscription totaling $98.00 in sales. She also has a subscribing customer who purchased 100 points at $0.39 totaling $39.00 in sales. Sally has several friends and neighbors who purchase a combined total of 500 points at the $0.66 price point totaling $ in sales. Sally s total sales are $ Compensation Plan Details Page 6 Updated 3/2/2016

7 $ $ = $467.00; Sally s Customer Commission would be $ X 20% = $93.40, because she is Q Qualified with 93 PCQV. Example 2: Sally has 5 customers on a $39.00 subscription and 5 customers on a $9.80 subscription totaling $ in subscription sales. This month, Sally s friends and neighbors purchase a combined total of 300 points at the $0.66 price totaling $ in sales. Sally s total sales are $ $ = $442.00; Sally s Customer Commission would be $ X 20% = $88.40, because she is Q Qualified with 93 PCQV. (Note: These are hypothetical examples intended solely to illustrate how the Customer Commission is calculated. SendOutCards makes no guarantee that you will be successful or will earn an income. Your success depends on your individual effort, sales skill, and leadership abilities.) Personal & 7- Level Downline Commission This Downline Commission is paid on levels 0 (the distributor and their customers) through 7 (their distributors and downline) of the distributor s genealogy. All distributors must have 31 in PCQV in order to receive commissions on their zero level. All distributors must have 93 in PCQV in order to receive commissions on levels 1-7. The percentages paid out on each level are found in the chart below. Some subscriptions prior to February 2016 may be eligible to pay $0.31 per point. Zero level commissions are paid on volume purchased at this price. Zero level commissions are not paid on purchases paid through the Customer Commission. Level % Payout 0 5% 1 2% 2 2% 3 2% 4 2% 5 2% 6 2% 7 5% PCQV Qualification Percentage Amount distributor may contribute 31 Qualifies distributor to be paid 5% on Level 0 31 (Personal & Customer Volume) 93 Qualifies distributor to be paid on Levels Volume paid on levels 1 through 7 are based on the total volume of the distributor at the given level. This volume total includes the volume amount that was made by all of those distributor s customer purchases, including those volumes paid out through the Customer Commission. This means if your first level distributor was paid Customer Commissions on one of their Preferred Customers with a $39 subscription you would receive 2% of $31 in volume from that customer s subscription. Compensation Plan Details Page 7 Updated 3/2/2016

8 Downline Infinity Commission The Downline Infinity Commission is paid out on unlimited levels, to unlimited depths. The percentage paid is based on the coding that the leader has on the distributor they are being paid for. To qualify to receive the Downline Infinity Commission, the leader must be Q Qualified at their current rank. The chart below assumes the leader has full coding on the distributor they are being paid for. If a distributor does not have full coding, they will only be paid the percentage for the coding they have, assuming they are Q Qualified at their current rank. Leader s Rank Manager Sr. Manager Executive Sr. Executive Eagle % paid to unlimited levels 5% 10% 15% 20% 25% How Often Do I Get Paid? Bonus runs take place Monday and Friday of each week. Monthly commission runs take place the 10 th of each month. If the 10 th is on a Saturday then the bonus will be paid on Friday. If the 10 th is on a Sunday then the bonus will be paid on Monday. How Does Coding Work? When a new distributor signs up, they are attached (or coded) to the person who sponsored them. The new distributor inherits the coding of their sponsor. Each distributor is coded to only one of each rank (Manager, Sr. Manager, Executive, Sr. Executive, and Eagle). The way a new distributor inherits their coding is by first inheriting the coding of their sponsor. Example, if the new distributor s sponsor is a Sr. Manager, that sponsor will be coded to them as the Manager and Sr. Manager. The new distributor would then inherit the sponsor s upline coding for Executive, Sr. Executive, and Eagle. When a new distributor receives their coding, that coding does not change. Using our previous example, if the distributor s sponsor becomes an Executive later on, the new distributor s coding does not change it remains the same. With customer payout, coding is contingent upon the highest qualified rank of their direct sponsor. If their direct sponsor holds multiple ranks at the time of payout, and is Q Qualified at that rank, they will earn the Product Commission and appropriate Customer Acquisition Bonuses. Compensation Plan Details Page 8 Updated 3/2/2016

9 What Does Bonus Period and Qualification Period Mean? All bonus and commission qualification periods are based on U.S. Eastern Time Zone. The Bonus Period for twice- weekly bonuses are run twice in the calendar week of Sunday through Saturday. Monthly bonus periods are run the first day of the calendar month to the last day of the calendar month. The Qualification Period is the timeframe used to determine if you qualified to be paid the bonus that is being evaluated for that bonus period. We use the last 35 days from the bonus period end date. If you enroll a new MD on the first day of the month and we are paying a twice- weekly bonus, we look back the past 35 days prior to the first day of the month to see if you are qualified to receive the bonus. On a twice- weekly bonus we would look back 35 days from the ending Saturday of the bonus period to determine if you were qualified to receive the bonus. For the monthly commission, we look back 35 days from the last day of the calendar month to determine if you are qualified for the monthly commission. If you are not qualified during the qualification period, then the commission will not be paid. Compensation Plan Details Page 9 Updated 3/2/2016

10 Rank Advancement Upon joining SendOutCards, each distributor starts at the rank of Distributor. Advancement through the ranks takes place by meeting the requirements to rank advance to the given rank. What are the Ranks in SendOutCards? The current ranks for distributors are as follows: Distributor (Dist) Manager (Man) Senior Manager (Sr. Man) Executive (Exec) Senior Executive (Sr. Exec) Eagle (Eagle) How Do I Advance from One Rank to the Next? All distributors must meet the same requirements to be paid and to rank advance. Distributors must pay an annual renewal fee to remain a distributor. The current fee is $59.00, which is due on the anniversary date of their enrollment. Distributors who do not renew are otherwise not active and do not count toward rank advancement. Rank advancement takes place when all requirements to rank advance are met. Rank advancements may take up to 24 hours to process and will be reflected in your Revolution Office. Each rank is described in the following sections: 1. Manager: To become a Manager you must have accomplished the following: A) At least 3 personally sponsored Distributors. B) A minimum of 1,200 in GQV (includes PCQV). C) Q Qualified for Manager. 2. Senior Manager: To become a Senior Manager you must have accomplished the following: A) At least 3 personally sponsored Distributors coded to you in your Manager Group. B) At least 12 Distributors coded to you in your Manager Group. C) A minimum of 4,800 in GQV in your Manager Group. D) Q Qualified for Senior Manager. Compensation Plan Details Page 10 Updated 3/2/2016

11 3. Executive: To become an Executive you must have accomplished the following: A) At least 1 personally sponsored Distributors coded to you in your Senior Manager Group. B) At least 5 Senior Managers coded to you in your Senior Manager Group, which means at least 5 Senior Managers in the Senior Manager Group Downline. C) Q Qualified for Executive. 4. Senior Executive: To become a Senior Executive you must have accomplished the following: A) At least 2 Executives coded to you in your Executive Group. B) At least 100,000 in GQV in the first 7 levels of your downline within any month as an Executive. C) Q Qualified for Senior Executive. 5. Eagle: To become the Rank of Eagle you must have accomplished the following: A) At least 2 Executives coded to you in your Senior Executive Group. B) At least 150,000 in GQV in the first 7 levels of your downline within any month as a Senior Executive. C) Q Qualified for Eagle. Compensation Plan Details Page 11 Updated 3/2/2016

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