KANNAWAY COMPENSATION PLAN 1 KANNAWAY COMPENSATION PLAN 2015

KANNAWAY COMPENSATION PLAN 1 KANNAWAY COMPENSATION PLAN 2015 VERSION 6 3.26.2015

KANNAWAY COMPENSATION PLAN 2 WE ARE KANNAWAY The world has never seen a company as unique and refreshing as Kannaway, and we know that our Brand Ambassadors are the driving force behind our success. Together with our Brand Ambassadors, we are creating a culture that is truly enriching the lives of people around the world. To bring this vision into reality, Kannaway has established a generous and straightforward compensation plan that rewards our Brand Ambassadors and even gives them two options to earn a car! WE ARE KANNAWAY

KANNAWAY COMPENSATION PLAN 3 Getting Started : STEP 1 STEP 2 STEP 2 There are a few things you will need to fully understand in order to be qualified to earn commission overrides on the sales made by your organization. Qualifying to earn commissions is a three step process Register to become a Kannaway Independent Business Owner (Brand Ambassador) by enrolling online and paying the required Brand Ambassador fee of $29.99 a month.* * Brand Ambassador s may opt to pay 1 lower annual fee of $249, saving over $110 a year. The Brand Ambassador fee includes: Kannaway marketing websites Kannaway secure back office Full access to Kway University Trainings Kannaway media marketing system Kannaway success manual and quick start guides Activate your Kannaway business by personally selling or purchasing Qualified Kannaway product(s). GETTING STARTED Maintain the minimum Personal Volume (PV - what is generated from all personal sales and personal customer sales) required for your rank each month, either through customer sales or personal orders, which may be accomplished by enrolling in the Kannaway Auto Delivery Program. Let s recap If your business plan is to build a strong and organized sales team, then you must: 1. Register to become a Brand Ambassador. 2. Activate your business. 3. Make sure you maintain the Personal Volume (PV) required for your rank each month. It s that easy! Once qualified, you ll receive credit for sales generated within your sales organization. [See: Rank Qualifications] VERSION 6 3.26.2015

KANNAWAY COMPENSATION PLAN 4 Understanding the Kannaway Plan Disclaimer: In the Kannaway program, there is no purchase of product required to be a Brand Ambassador. The only required fee to become a Brand Ambassador is the $29.99 monthly Brand Ambassador fee, from which no commissions are generated. Kannaway only pays commissions from the sale of products not from the recruitment of Brand Ambassadors. As a Brand Ambassador (Independent Business Owner), it s important to understand how you get paid. A portion of each sale generated within your organization may trigger one or more of the nine ways for you to earn commissions. As you read through this compensation explanation, you ll understand how you re rewarded in each area of the compensation plan. It is important to understand that only qualified Brand Ambassadors earn commissions and that in order to receive commissions you must satisfy a minimum Personal Volume (PV) based on your rank. For further explanation, see: Rank and Pin Levels (page 15) As Brand Ambassadors achieve higher ranks, it s important that they remain current on all relevant issues that can affect their businesses along with the reputation of Kannaway. In order to sustain a professional sales culture, Kannaway has developed Kway University. The cost for Kway University is included in the $29.99 monthly Brand Ambassador Fee. A Brand Ambassador may choose to pay their Brand Ambassador fee annually in lieu of paying monthly. The annual fee is $249, which is a savings of over $110 a year. If a Brand Ambassadors chooses this option the credit card on file will automatically be billed $249 on their anniversary date unless they select the monthly option prior to their anniversary date. An email reminder will be sent to the email address on file 30 days prior to the Brand Ambassadors anniversary date. RETAIL SaleS Income Selling Kannaway products directly to your customers whether they are Retail Customers or Preferred Retail Customers is the first step towards building a solid foundation for your Kannaway business. Retail sales allow you to make income by purchasing Kannaway products at wholesale and selling them at retail, earning a wholesaleto-retail profit. You may choose to carry a small inventory of products to keep on-hand so your customers can have their products immediately, or you can simply direct your customers to your Kannaway Brand Ambassador website where they can purchase products and have them shipped directly from the Company. *Direct Sale Income is paid weekly. Kannaway Preferred Customer Program Some retail customers prefer to purchase products at their own pace. You can also offer your customers the opportunity to save money and even earn FREE Kannaway product by registering in the Kannaway Preferred Customers Program (KPCP). Registration is free and as a Preferred Customer they will have the ability to buy the Kannaway products at the Brand Ambassador wholesale price. As an active Brand Ambassador you will receive credit for the product Business Volume (BV, the total volume assigned to each product) towards your Personal Volume requirement (PV) and rank advancements. As an Active Brand Ambassador you will also receive a DSB of 30% on the product purchases made by your personally enrolled Preferred Customer(s), this includes their Monthly Autoship orders. The remaining 70% of the CV will be paid to the upline as Monthly Residual Commissions.

KANNAWAY COMPENSATION PLAN 5 In order for a customer to be a Kannaway Preferred Customer (KPC), they must complete the Kannaway Preferred Customer online application and enroll in the Kannaway Auto Delivery Program where they ll start receiving the product(s) of their choice monthly. As a Kannaway Preferred Customer, they will be given a back office account to track their order history and manage their auto delivery. 3 And Yours Is Free At Kannaway, we believe that referral marketing is the most effective way to market. That s why we reward our Preferred Customers with the ability to earn FREE product. All they have to do is refer three other Kannaway Preferred Customers and their product is FREE. The amount of free product a KPC can be awarded will be based on the average product orders of the total number of Kannaway Preferred Customers they refer. For example: If a KPC refers just three other Preferred Customers whose average product orders equal 55 BV, they too would be eligible to receive 55 BV in product for free. All sales are credited to the Brand Ambassador who enrolled the referring Preferred Customer. *Kannaway Brand Ambassadors may also participate in the 3 And Yours Is Free program and receive their products for free Here s How It Works: Maintain an active monthly Auto Delivery order of at least 55 BV in product orders. Have at least three Kannaway Preferred Customers (KPCs) with minimum active auto delivery orders totaling 165 BV each calendar month. When this occurs, your next month s product order is FREE. The amount of free product a Brand Ambassador can receive will be based on the total average BV order of their KPCs. *There are no commissions paid on free product. VERSION 6 3.26.2015

KANNAWAY COMPENSATION PLAN 6 Direct Sales Bonus: (DSB) Kannaway understands that it is important for Brand Ambassadors to have the ability to get their business into a profitable position as soon as possible. Every time a Brand Ambassador enrolls a new team member, they will earn a Direct Sales Bonus (DSB) of 30% Commissionable Volume (CV) on all products and product pack sales their new Brand Ambassador makes in their first 30 days. The Direct Sales Bonus incentivizes Sponsors to work with their new Team Members to help them succeed in Kannaway. FAST START Bonus PROGRAM: (FSB) As an added incentive to help Brand Ambassadors get into the profit quickly, Kannaway has developed a Fast Start Bonus Program [FSB] that gives Brand Ambassadors the ability to earn added commissions during their first 30 to 60 days. These additional Fast Start Bonuses are triggered when a Brand Ambassador Essential, Lifestyle or Premier qualifies within their first 30 to 60 days. To Essential Qualify a Band Ambassador must sell or purchase a minimum of 199BV (Business Volume) in Kannaway Products within their first 30 days. To Lifestyle Qualify a Brand Ambassador must sell or purchase a minimum of 499BV (Business Volume) in Kannaway Products within their first 30 days. To Premier Qualify a Brand Ambassador must sell or purchase a minimum of 999BV (Business Volume) in Kannaway Products within their first 30 days. When a Brand Ambassador Premier qualifies their Fast Start Period will be extended to 60 days. The BV thresholds may be met by selling or purchasing either individual Kannaway products or one of the qualifying product packages Kannaway offers. During a Brand Ambassador s first 30 days any single order that has a total BV (Business Volume) that meets the Essential, (199BV) Lifestyle (499BV) or Premier (999BV) Qualification the order may trigger the following Fast Start Bonuses; Double-Up FSB Bonus, 50% FSB Matching Bonus, Coded FSB Bonus & Weekly Cycle Bonuses. For a full explanation of all our Fast Start Bonuses continue reading the Kannaway Fast Start Bonus Program. All orders placed within the first 30 days of a newly enrolled Brand Ambassador that do not meet the Essential, Lifestyle or Premier Qualifications will be commissioned the following way: 30% as Direct Sale Bonuses and 70% as Monthly Residual Commissions. Double-Up FSB Commissions When a Brand Ambassador enrolls three other Brand Ambassadors during their Fast Start Period, who Essential, Lifestyle of Premier Qualify, the DSB commissions they earned on those sales will retroactively double. At this point, every qualified sale the Brand Ambassador makes during their first Fast Start Period will automatically double.

KANNAWAY COMPENSATION PLAN 7 50% FSB Matching Bonus Duplication is the key to long term success in Relationship Marketing to help our Brand Ambassadors create a culture of teamwork we give them the ability to earn a 50% matching bonus on qualified sales made by each of their personally enrolled Brand Ambassadors during their Fast Start Period. To qualify to earn the 50% FSB match a Brand Ambassador must personally Lifestyle or Premier qualify during their first 30 days. Once qualified a Brand Ambassador will continue to earn the 50% FSB match on newly enrolled Brand Ambassadors as long as they continue to maintain their minimum monthly sales volume requirement. If a Brand Ambassador personally Lifestyle Qualifies, they will have 30 days from their date of enrollment to personally enroll 3 qualified Brand Ambassadors to become Match Qualified. If a Brand Ambassador personally Premier Qualifies, they will have 60 days from their date of enrollment to personally enroll 3 qualified Brand Ambassadors to become Match Qualified. Once Qualified, a Brand Ambassador will earn a 50% Matching Bonus on their personally enrolled Brand Ambassadors Direct Sale Bonuses for 30 to 60 days based on their newly enrolled Brand Ambassadors Fast Start Qualification period. If the newly enrolled Brand Ambassador Essential or Lifestyle Qualifies, the sponsoring Brand Ambassador will earn a 50% FSB Matching Bonus for 30 days. If the newly enrolled Brand Ambassador Premier Qualifies, the sponsoring Brand Ambassador will earn a 50% FSB Matching Bonus for 60 days. To be eligible to earn Fast Start Double-Up and 50% FSB Matching Bonuses, a Brand Ambassador must be enrolled in the Kannaway Monthly Autoship Program with a minimum order of 55 BV. There is no match paid on the Double-Up portion of the FSB. The Double-U p is only paid on the Direct Sale Bonus. The Kannaway compensation plan pays 50% of the total BV in commissions. Products and product packs sold after the Fast Start Period will be paid through Team Override Commissions. NOTE: No product purchase is required to be a Brand Ambassador. The only required fee to be a Kannaway Brand Ambassador is the monthly Brand Ambassador fee. * Double-Up FSB and 50% FSB matching bonuses are paid weekly. VERSION 6 3.26.2015

KANNAWAY COMPENSATION PLAN 8 Lifetime 50% FSB Match Qualified What is better than earning a matching bonus for 60 days? Earning it for a lifetime! Kannaway provides qualified Brand Ambassadors the ability to earn a Lifetime 50% Match on the Direct Sales Bonuses of all their personally enrolled Brand Ambassadors. To Lifetime Match Qualify a Brand Ambassador must personally Premier qualify during their first 30 days, as well as personally acquire and maintain at least 1 customer. Or achieve the Qualified Rank of Gold and maintain 1 active customer. Once qualified a Brand Ambassador will earn the Lifetime FSB Match on every personally enrolled Brand Ambassador who Essential, Lifestyle or Premier qualifies and acquires a customer during their Fast Start Period. If a Brand Ambassador fails to maintain an active customer they will forfeit the LIfetime 50% FSB Matching Bonus until they acquire a new customer. If a personally enrolled Brand Ambassador fails to maintain an Active Customer, the enrolling Brand Ambassador will forfeit the Lifetime 50% Matching Bonus for that Brand Ambassador until that Brand Ambassador acquires an Active Customer All Brand Ambassadors who are not Premier Qualified that acquire an Active Customer during their Fast Start period will receive a maximum of 1 month of no monthly Brand Ambassador Fee. Coded FSB Matching Bonus Kannaway not only pays a Lifetime 50% FSB Matching Bonus, but we also provide qualified leaders the ability to earn a Coded Match on potentially every Pack Qualified Sale made within their entire organization. Every Pack Qualified sale is coded to as many as 4 upline leaders. Coded Rank Matching % National Marketing Director 25% Gold 10% 10% Double 5% To earn the Coded Match qualified Brand Ambassadors must be active and attain a Code Qualified rank, (see above) as well as maintain at least 1 active customer each month. Once qualified a Brand Ambassador will start earning the Coded FSB Match on their very next personally enrolled Brand Ambassador(s) and the organizations they build. At this point the qualified Brand Ambassador will earn a Coded FSB Matching Bonus on every newly sponsored Brand Ambassador on those coded teams, who Essential, Lifestyle or Premier qualifies and acquires a customer during their Fast Start Period.

KANNAWAY COMPENSATION PLAN 9 If a Brand Ambassador fails to maintain an active customer they will forfeit the Coded Match commissions until they acquire a new customer. The Coded Bonus from the sale is not paid to the Coded Leaders until the Brand Ambassador who makes the sell acquires a customer during their Fast Start Period. An upline leader may earn more then one Coded %. Example, if a qualified sale is made under a and there are no Qualified NMD s or Gold s between the and the sale the will earn not only the 10% Code, but both the 10% Gold and 25% NMD Codes for a total Coded override of 45%. Weekly Cycle Bonus Rules: Personally enroll at least three (3) active Brand Ambassadors in three separate legs Weekly Cycle Bonuses are generated when a Brand Ambassador has at least 3,000 in Qualified Team Volume. No more than 45% of the BV may be counted from any one personally enrolled team (leg). Only qualified product sales count towards Weekly Cycle Bonuses. [Premier, Lifestyle and Essential qualified sales] Qualified Weekly Cycle Bonuses will only be credited one time to Qualified Brand Ambassadors The number of cycles a Brand Ambassador can complete in a given week is based on a Brand Ambassador s Paid As Rank: Director - 8 cycles Regional Marketing Director (RMD) - 8 cycles National Marketing Director (NMD) and above - 16 cycles If a product is returned for a full refund, all commissions paid on that sale will be deducted from all Brand Ambassadors (who were credited with the BV) next commission checks. If that triggered a Weekly Cycle Bonus, the entire Bonus will be deducted from the next check; however, the remaining BV from that cycle will be credited towards the Brand Ambassador s next Weekly Cycle Bonus qualification. All FSB, Fast Start Double-Up, and 50% Matching Bonuses will be capped at 100% of the CV allocated towards those bonuses. If at any time the total commissions earned for these bonuses exceed that threshold, Kannaway reserves the right to apply the CAP Rule (see: Definitions below) on FSB and Weekly Cycle Bonus commissions ONLY. If the CAP rule applies, the Bonuses will be paid as follows: All FSB, Fast Start Double-Up, and 50% Matching Bonuses will be paid in full. All first cycle Weekly Cycle Bonuses earned that pay period will be paid in full. All Weekly Cycle Bonus cycles affected by the CAP Rule will be prorated by dividing the CAP overage by the number of cycles in that pay period to establish the exact value of each cycle. All BV from Qualified sales above the required 3,000 BV will not be carried over to the next cycle. VERSION 6 3.26.2015

KANNAWAY COMPENSATION PLAN 10 5 Levels of Team Override Bonus As a Kannaway Brand Ambassador, your focus will be on creating a retail and Preferred Retail Customer base as well as building a team of Brand Ambassadors. As you progress through the Kannaway compensation program, you will earn increased Team Override Bonuses from the product sales generated throughout your sales organization. Kannaway utilizes a unilevel structure for our Team Override Bonuses. This means that every Brand Ambassador will automatically be placed on their sponsor s first level unless their sponsor chooses to place them under a Brand Ambassador deeper in their Team Override Tree. [Placement is an advanced organizational strategy. Ask your Team Leader for advice on the best strategy for building your Kannaway business.] As you can see from the diagram below, the higher the rank you achieve, the more levels from which you can earn commissions. The Kannaway compensation plan uses compression to allow Brand Ambassadors to earn on sales originating down deeper within their organization if someone in the organizational tree is inactive. This means any customer or Brand Ambassador volume that is not generated from an active Brand Ambassador will compress and be counted within the volume of the level immediately above. [Note: All commissionable sales will be paid through the Unilevel Placement Tree below with the exception of sales that qualify as Direct Sales Bonuses, Fast Start Bonus Program, andweekly Cycle Bonus sales.] Rank Brand Ambassador Director Regional Marketing Director National Marketing Director Silver Gold Platinum Double Triple Royal LVL 1 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% LVL 2 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% LVL 3 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% LVL 4 5% 5% 5% 5% 5% 5% 5% 5% 5% LVL 5 5% 5% 5% 5% 5% 5% 5% 5% * Note: The Commissionable Volume (CV) is equal to 50% of the total Business Volume (BV). Differential infinity Bonus The Differential Infinity Bonus begins at the 6th level of the Unilevel Placement Tree and allows Qualified Brand Ambassadors to override all sales made by their sales organization no matter what level the sale was generated on. Example: If a Royal has no Regional Marketing Directors (or above) in a specific leg or in a directly sponsored team, they would receive an 18% Infinity Bonus on all sales below their 5th level. Once a Brand Ambassador in that team qualifies as a Regional Marketing Director, they would begin to earn a 2% Infinity Bonus on their 6th level sales to infinity; the Royal would earn the difference between their percentage override (18%) and the Sliver s (2%) on the very same sale, i.e. 16%.

KANNAWAY COMPENSATION PLAN 11 If a Royal has a Platinum in one of their legs and a Gold under the Platinum in that same leg, the is paid 18% down to the Platinum s 5th level and 8% on the Platinum s 6th level and beyond. This is because on the Platinum s 6th level, they begin to earn a 10% Differential Infinity Bonus themselves (18% less 10% = 8%). The Platinum is also paid 10% down to the Gold s 5th level and 2% on the Gold s 6th level and below. Once again, this is because on the Gold s 6th level, the Gold begins to earn the Differential Infinity Bonus (10% less 8% = 2%). The Differential Infinity Bonus pays a total of 18% BV (Weekly Cycle Bonus-qualified BV excluded) to Qualified Brand Ambassadors and is based on the Paid As Rank. NOTE: Starting with the 6th level, all Team Override Commissions will follow the diagram below. The Differential Infinity Bonus is calculated through the Placement Tree. Differential Infinity Bonuses RMD NMD Silver Gold Platinum Double Triple Royal 2% 4% 6% 8% 10% 12% 14% 16% 18% * Differential Infinity Bonuses are paid monthly from the Placement Tree. Coded Infinity Bonus The Kannaway compensation plan rewards Brand Ambassadors who work hard and build a strong, productive sales team. All Paid As Ranks of National Marketing Director and above (see: Achieving Higher Leadership Levels) have the potential to earn an additional bonus on sales made by every Brand Ambassador in their sales team no matter what level the Brand Ambassador is on. It s all related to who made the sale, even if they are on the 100th level. Here s How It Works Every Brand Ambassador in the Kannaway program has upline leadership. This is true for you and it will be true for those in your sales organization. Every time a Brand Ambassador is enrolled in Kannaway, their Kannaway Business is tagged or linked up to eight (8) of their upline Brand Ambassadors forever. Qualifying leaders will earn an additional bonus on every sale that a Brand Ambassador makes and potentially every sale their entire Brand Ambassador organization makes to infinity. Note: The Leadership Coded Infinity Bonus pays a total of 18% BV (DSB, FSB and Weekly Cycle Bonus Qualified BV excluded) to Qualified Brand Ambassadors. Bonuses are based on Paid As Rank. All BV is calculated based on the Sponsorship Tree, not the Placement Tree. NMD Silver Gold Platinum Double Triple Royal 4% 6% 8% 10% 12% 14% 16% 18% VERSION 6 3.26.2015

KANNAWAY COMPENSATION PLAN 12 Bonus Pool Kannaway believes in rewarding those Brand Ambassadors who partner with us in growing the company and sharing the Kannaway lifestyle with others. We do this through the Bonus Pool program, which not only rewards our Brand Ambassadors for their part in the success of the company, but also helps create a company-wide culture of teamwork! Here s How It Works Kannaway allocates 4% of the total company-wide BV. The Bonus Pool is divided by points, with earning one point, Double earning two points, Triple earning three points and Royal earning four points. *All points have an equal value and are allocated based on Paid As Rank. Bonus Pool 4% BV Double Triple Royal 1 Point 2 Points 3 Points 4 Points *Qualification is based on rank *Bonus pool commissions are paid monthly KANNAWAY CAR PROGRAM The Kannaway Car Program gives you two ways to earn a car, with you ultimately receiving the title to the car of your choice (up to $75,000 in retail value see Cash Bonuses and Rewards). Here s How It Works The qualifying Brand Ambassador must purchase/lease a company-approved car in black or silver that is not older than three (3) model years. If a Brand Ambassador chooses to purchase/lease a car that is a pre-owned, it must be free of any exterior and interior defects and be in good operating condition. (See: Kannaway Car Program Policy below.) *Car bonuses are awarded monthly Kannaway Car Program Policy What car maker/makers are eligible? BMW Mercedes Benz Bentley

KANNAWAY COMPENSATION PLAN 13 Kannaway Car Program Bonuses Rank Bonus Silver $500 Gold $500 Platinum $750 $1,000 Double $1,000 If a Brand Ambassador chooses not to participate in the Kannaway Car Program, they may opt to receive 50% of the car bonus in cash once they have achieved a Paid As Rank of Silver for two consecutive calendar months. A Brand Ambassador who is a college student may opt to have the full monthly value of the Kannaway Car Program Bonus applied directly towards their college tuition. (See: College Tuition Program for details.) Achieve the Paid As Rank of Triple and receive the title to the car of your choice. (Value up to $75,000 see Incentives & Rewards.) CASH BONUSES AND REWARDS National Marketing Director Silver Gold Platinum Double Triple Royal PV Requirement 55PV 110PV 110PV 110PV 110PV 110PV 110PV 110PV Total GV 9000 30,000 2 RMD Legs & 1 Director Leg 90,000 2 NMD Legs & 1 RMD Leg 180,000 2 Silver Legs & 1 NMD Leg 3 Gold Legs (2 Personal) 3 Platinum Legs (2 Personal) 2 Legs (2 Personal) 4 s in 3 Legs (2 Personal) Leg Max 60% 60% 60% 60% N/A N/A N/A N/A Consecutive 2 Months 2 Months 2 Months 2 Months 2 Months Cash Bonus ipad $10,000 $25,000 $50,000 $75,000 $100,000 Paid Over 3 Months 6 Months 12 Months 1 Payment 12 Months Grace Period 2 Months 2 Months 3 Months N/A 3 Months Total GV and Leg Requirements: Silver, Gold & Platinum (of the 3 minimum legs 2 must be personally sponsored legs, the 3rd leg can be placed as long as there is an active personally sponsored person in the leg) (Pin Ranks must be in separate legs other then Royal which may have 2 or the 4 s in 1 leg) *Pin Ranks must be in seperate legs. VERSION 6 3.26.2015

KANNAWAY COMPENSATION PLAN 14 Consecutive Months: The consecutive months only pertains to the Cash Bonus, all other commissions earned will be paid the first month they rank qualify. Grace Period: All Bonuses are paid over a monthly term (See Chart Above), starting with the 2nd consecutive month of qualification, grace periods may be used. 1. At Platinum a BA has 5 months not including the first month of qualification to be paid 3 payments. 2. At a BA has 8 months not including the first month of qualification to be paid 6 payments. 3. At Double a BA has 15 months not including the first month of qualification to be paid 12 payments. 4. At Royal a BA has 15 months not including the first month of qualification to be paid 12 payments. Organizational Structure Sponsor Tree When a new Brand Ambassador is Sponsored, they go into the Sponsor Tree as a Level 1, or frontline, to the Brand Ambassador who sponsored them. Direct Sales Bonuses, Fast Start Bonuses (FSB), Weekly Cycle Bonus (WCB) and Leadership Coded Bonuses are based on the Sponsor Tree. The Holding Tank The Kannaway compensation plan gives the sponsoring Brand Ambassador the ability to sponsor a Brand Ambassador and place them above or under another Brand Ambassador on their team within 60 days from the date of enrollment. The sponsoring Brand Ambassador will still maintain sponsorship and will receive all sponsor bonuses. Placement Tree When a new Brand Ambassador is sponsored, they are automatically placed on their sponsor s Level 1. However, at any time within the first thirty days of enrollment, the Sponsor may elect to place or move the enrolled Brand Ambassador above or under another Brand Ambassador in their organization. All products purchased or sold by the enrolled Brand Ambassador are commissioned based on their placement when the commission period ends. Placement is an advanced strategy that allows the sponsoring Brand Ambassador the opportunity to increase sales volume in an existing leg, and enables the new Brand Ambassador to gain additional support from a sales organization that is already in place. Rank advancement, Infinity Bonus, Team Override Commissions, and Differential Infinity Bonuses are all based on the BV in the Placement Tree.

KANNAWAY COMPENSATION PLAN 15 Rank and Pin Levels I. Brand Ambassador a. Requirements: i. Pay the required (monthly) $29.99 Brand Ambassador s Fee b. Earn: i. Retail commission ii. DSB on all personally enrolled Brand Ambassadors sales & orders for their first 30 days iii. Fast start double-up iv. 2 levels of Team Override Bonus II. Director [DIR] a. Requirements: i. Maintain at least 55 BV in personal sales ii. Maintain a monthly Total Group Business Volume of 600 BV, with not more than 80% from any one leg b. Earn: i. Retail commission ii. DSB on all personally enrolled Brand Ambassadors sales & orders for their first 30 to 60 days (See rules above) iii. Fast Start Double-Up (See rules above) iv. 50% Matching Fast Start Bonus (See rules above) v. Lifetime 50% Fast Start Match Qualified (See rules above) vi. 3 levels of Team Override Bonus III. Regional Marketing Director [RMD] a. Requirements: i. Maintain at least 55 BV in personal sales ii. Personally enroll and maintain 3 active Brand Ambassadors placed in 3 separate legs. A minimum of two legs must be personally sponsored legs the third qualifying leg may be a placement leg. iii. Maintain a minimum of 3,000 BV in Total Group Business Volume, with not more than 70% from any one leg b. Earn: i. Retail commission ii. DSB on all personally enrolled Brand Ambassadors sales & orders for their first 30 to 60 days (See rules above) iii. Fast Start Double-up (See rules above) iv. 50% Fast Start Match Bonus (See rules above) VERSION 6 3.26.2015

KANNAWAY COMPENSATION PLAN 16 v. Lifetime 50% Fast Start Match Qualified (See rules above) vi. Weekly Cycle Bonus (See rules above) vii. 4 levels of Team Override Bonus viii. 2% Differential Infinity Bonus IV. National Marketing Director [NMD] a. Requirements: i. Maintain at least 55 BV in personal sales ii. Personally enroll and maintain 3 active Brand Ambassadors placed in 3 separate legs. A minimum of two legs must be personally sponsored legs the third qualifying leg may be a placement leg. iii. Maintain a minimum of 9,000 BV in Total Monthly Group volume, with not more than 60% from any one leg b. Earn: i. Retail commission ii. DSB on all personally enrolled Brand Ambassadors sales & orders for their first 30 to 60 days (See rules above) iii. Fast Start Double-Up (See rules above) iv. 50% Fast Start Match Bonus (See rules above) v. Lifetime 50% Fast Start Match Qualified (See rules above) vi. Weekly Cycle Bonus (See rules above) vii. Coded FSB Matching Bonus (See rules above) viii. 5 levels of Team Override Bonus ix. 4% Differential Infinity Bonus x. 4% Leadership Boded Bonus xi. ipad Mini (see Cash bonuses & Rewards chart) V. Silver [SE] a. Requirements: i. Maintain at least 110 BV in personal sales ii. Personally enroll and maintain 3 Active Brand Ambassadors placed in three separate legs iii. Maintain a minimum of 30,000 BV in Total Monthly group volume, with not more than 60% from any one leg iv. Help promote and maintain 3 Brand Ambassadors who achieve the rank of RMD or higher in separate legs. A minimum of two legs must be personally sponsored legs the third qualifying leg may be a placement leg. b. Earn: i. Retail commission ii. DSB on all personally enrolled Brand Ambassadors sales & orders for their first 30 to 60 days (See rules above) iii. Fast Start Double-Up (See rules above) iv. 50% Fast Start Match Bonus (See rules above) v. Lifetime 50% Fast Start Match Qualified (See rules above)

KANNAWAY COMPENSATION PLAN 17 vi. Weekly Cycle Bonus (See rules above) vii. Coded FSB Matching Bonus (See rules above) viii. 5 levels of Team Override Bonus ix. 6% Differential Infinity Bonus x. 6% Leadership Coded Bonus xi. Kannaway Car Program Bonuses (See rules above) VI. Gold [GE] a. Requirements: i. Maintain at least 110 BV in personal sales ii. Personally enroll and maintain 3 Active Brand Ambassadors placed in three separate legs iii. Maintain a minimum of 90,000 BV in Total monthly group volume, with not more than 60% from any one leg iv. Help promote and maintain 3 Brand Ambassadors who achieve the rank of NMD or higher in separate legs. A minimum of two legs must be personally sponsored legs the third qualifying leg may be a placement leg. b. Earn: i. Retail commission ii. DSB on all personally enrolled Brand Ambassadors sales & orders for their first 30 to 60 days (See rules above) iii. Fast Start Double-Up (See rules above) iv. 50% Fast Start Match Bonus (See rules above) v. Lifetime 50% Fast Start Match Qualified (See rules above) vi. Weekly Cycle Bonus (See rules above) vii. Coded FSB Matching Bonus (See rules above) viii. 5 levels of Team Override Bonus ix. 8% Differential Infinity Bonus x. 8% Leadership Coded Bonus xi. Kannaway Car Program Bonuses (See rules above) VII. Platinum [PE] a. Requirements: i. Maintain at least 110 BV in personal sales ii. Personally enroll and maintain 3 Active Brand Ambassadors placed in three separate legs iii. Maintain a minimum of 180,000 BV in Total monthly group volume for two consecutive months with not more than 60% from any one leg iv. Help promote and maintain 3 Brand Ambassadors who achieve the rank of Silver (or higher) in separate legs. A minimum of two legs must be personally sponsored legs the third qualifying leg may be a placement leg. VERSION 6 3.26.2015

KANNAWAY COMPENSATION PLAN 18 b. Earn: i. Retail commission ii. DSB on all personally enrolled Brand Ambassadors sales & orders for their first 30 to 60 days (See rules above) iii. Fast Start Double-Up (See rules above) iv. 50% Fast Start Match Bonus (See rules above) v. Lifetime 50% Fast Start Match Qualified (See rules above) vi. Weekly Cycle Bonus (See rules above) vii. Coded FSB Matching Bonus (See rules above) viii. 5 levels of Team Override Bonus ix. 10% Differential Infinity Bonus x. 10% Leadership Coded Bonus xi. Kannaway Car Program Bonuses (See rules above) xii. $10,000 Cash Bonus & Rewards VIII. a. Requirements: i. Maintain at least 110 BV in personal sales ii. Personally enroll and maintain 3 active Brand Ambassadors placed in 3 separate legs iii. Help promote and maintain 3 Brand Ambassadors who achieve the rank of Gold (or higher) in separate legs. A minimum of two legs must be personally sponsored legs the third qualifying leg may be a placement leg. b. Earn: i. Retail commission ii. DSB on all personally enrolled Brand Ambassadors sales & orders for their first 30 to 60 days (See rules above) iii. Fast Start Double-Up (See rules above) iv. 50% Fast Start Match Bonus (See rules above) v. Lifetime 50% Fast Start Match Qualified (See rules above) vi. Weekly Cycle Bonus (see rules above) vii. Coded FSB Matching Bonus (See rules above) viii. 5 levels of Team Override Bonus ix. 12% Differential Infinity Bonus x. 12% Coded Infinity Bonus xi. Kannaway Car Program Bonuses (See rules above) xii. 1 share in the Leadership Pool xiii. $25,000 Cash Bonus & Rewards

KANNAWAY COMPENSATION PLAN 19 IX. Double a. Requirements: i. Maintain at least 110 BV in personal sales ii. Personally enroll and maintain 3 active Brand Ambassadors in three separate legs iii. Help promote and maintain 3 Brand Ambassadors who achieve the rank of Platinum (or higher) in three separate legs. A minimum of two legs must be personally sponsored legs the third qualifying leg may be a placement leg. b. Earn: i. Retail commission ii. DSB on all personally enrolled Brand Ambassadors sales & orders for their first 30 to 60 days (See rules above) iii. Fast Start Double-Up (See rules above) iv. 50% Fast Start Match Bonus (See rules above) v. Lifetime 50% Fast Start Match Qualified (See rules above) vi. Weekly Cycle Bonus (see rules above) vii. Coded FSB Matching Bonus (See rules above) viii. 5 levels of Team Override Bonus ix. 14% Differential Infinity Bonus x. 14% Coded Infinity Bonus xi. Kannaway Car Program Bonuses (See rules above) xii. 2 shares in the Leadership Pool xiii. $50,000 Cash Bonus & Rewards X. Triple a. Requirements: i. Maintain at least 110 BV in personal sales ii. Personally enroll and maintain 3 active Brand Ambassadors in three separate legs iii. Help promote and maintain 2 Brand Ambassadors who achieve the rank of (or higher) in separate legs. Both legs must be personally sponsored legs. b. Earn: i. Retail commission ii. DSB on all personally enrolled Brand Ambassadors sales & orders for their first 30 to 60 days (See rules above) iii. Fast Start Double-Up (See rules above) iv. 50% Fast Start Match Bonus (See rules above) v. Lifetime 50% Fast Start Match Qualified (See rules above) vi. Weekly Cycle Bonus (see rules above) vii. Coded FSB Matching Bonus (See rules above) viii. 5 levels of Team Override Bonus ix. 16% Differential Infinity Bonus VERSION 6 3.26.2015

KANNAWAY COMPENSATION PLAN 20 XI. Royal x. 16% Leadership Coded Bonus xi. 3 shares in the Leadership Pool xii. $75,000 title to your dream car a. Requirements: i. Maintain at least 110 BV in personal sales ii. Personally enroll and maintain 3 active Brand Ambassadors in three separate legs iii. Help promote and maintain 4 Brand Ambassadors who achieve the rank of (or higher) in 3 separate legs. All 3 legs must be personally sponsored legs. b. Earn: i. Retail commission ii. DSB on all personally enrolled Brand Ambassadors sales & orders for their first 30 to 60 days (See rules above) iii. Fast Start Double-Up (See rules above) iv. 50% Fast Start Match Bonus (See rules above) v. Lifetime 50% Fast Start Match Qualified (See rules above) vi. Weekly Cycle Bonus (see rules above) vii. Coded FSB Matching Bonus (See rules above) viii. 5 levels of Team Override Bonus ix. 18% Differential Infinity Bonus x. 18% Leadership Coded Bonus xi. 4 shares in the leadership pool xii. $100,000 Cash Bonus & Rewards

KANNAWAY COMPENSATION PLAN 21 Definitions Brand Ambassador Kannaway Independent Business Owner Active Brand Ambassadors are active when they are fulfilling their Personal Volume (PV) requirement each month. Qualified Brand Ambassadors are Qualified when they have personally enrolled at least two Brand Ambassadors who remain active each month. Earned Rank The highest Pin rank a Brand Ambassador earns. This allows the Brand Ambassador to be recognized at that rank. Paid As Rank The rank a Brand Ambassador is for that commissionable period. Commissions are paid to each Brand Ambassador based on the rank they are for each commissionable period. It is possible that a Brand Ambassador s Earned Rank and Paid As Rank are different. Business Volume (BV) The total volume assigned to each product. Commissionable Volume (CV) The total volume from which commissions are paid.commissionable Volume equals 50% of the Business Volume. Personal Volume (PV) What is generated from all personal sales and personal customer sales. Weekly Commissions Weekly commissions start on Friday at 12:00am PT and end on Thursday night at 11:59pm PT; weekly commissions are available on the following Friday. Monthly Commissions Monthly commissions start at 12:00am PT on the first day of the month and end at 11:59pm PT on the last day of the month. Commissions will be paid on the 15th of the following month during our monthly commission run. CAP Rule The CAP Rule applies to the WCB. If the total commissions earned exceed the total CV allotted for the WCB, the CAP Rule will reduce the checks accordingly until the commission payout for the WCB lowers to the maximum commission cap VERSION 6 3.26.2015

24 KANNAWAY SUCCESS MANUAL 24 KANNAWAY SUCCESS MANUAL KANNAWAY COMPENSATION PLAN 22