Rewards and Recognition

Rewards and Recognition SEAL DISCOVERY CONSULTING SERVICES BUSINESS CONSULTANT 2015/2016

DISCOVERY SEAL The recognition programme rewards you for displaying the following qualities: Service excellence. Education. Astuteness in business. Leadership in the industry. There are four simple steps to becoming a Discovery SEAL: 01 Know your business 04 Reap the rewards Build up your SEAL status and enjoy greater rewards Understand the Discovery products, related legislation and the financial services industry Increase your Recognition Points and build your SEAL status 02 Grow your business Market the Discovery Integrated product offering and value proposition to grow your business 03 Achieve a status Discovery Business Consultant Charter The Business Consultant charter binds you to the highest standards of professionalism and integrity. As a Discovery Business Consultant, Discovery holds you to the same values that would apply to all our people. We do this because you are a member of our team, an ambassador of our brand and because we entrust you with the important role of providing advisers with relevant, appropriate and valuable support and information. This should be the very foundation of your performance: 1. Honesty and ethics come first. 2. You always represent Discovery, its values and reputation. 3. You have high standards of knowledge about the industry and Discovery s products. 4. You live the Discovery values. 5. You strive to be the best of the best. 01

01 KNOW YOUR BUSINESS MEET THE MINIMUM RECOGNITION REQUIREMENTS Complete your compulsory online assessments You will have to complete all compulsory online assessments available on the Discovery Institute of Training Portal from 15 April 31 May 2016. These assessments will test your current knowledge and ability to source information about the Discovery product range. You can use various supporting documentation when completing these assessments. You need to meet the competency level set and communicated by the Discovery Institute of Training to qualify for all rewards and recognition. Maintain high-quality consultation with your Financial Advisers We conduct a survey among a minimum of five Financial Advisers who have been linked to you for three or more months, to assess the quality of your consultation with them. These surveys take place before 30 April 2016. Achieve an average score of 80% or more to qualify for rewards and recognition. 02 GROW YOUR BUSINESS EARN HIGH PERFORMANCE BONUS Quarterly HPB = Production growth + Life support bonus + Invest support bonus + Integration bonus Minimum requirement You must achieve at least 60% of target on all four product lines to qualify for High Performance Bonus pay-outs. REWARDING QUARTERLY PRODUCTIVITY Rewarding production growth per product line Quarterly targets per product line are set by using the preceding 12 months production of your panel as the base, with an expected increase, which varies, depending on your specific base threshold in the matrices. Large case sliding scales apply. You will receive your individual product line High Performance Bonus target at the beginning of each quarter. Category % increase 1 25% Annual threshold (categorizing historic production) Health Risk Invest Insure <R6 600 m If historic production + 25% not equal to R6 600 m, a minimum target of R6 600 m will be given <R1 980 m If historic production + 25% not equal to R1 980 m, a minimum target of R1 980 m will be given <R1 860 m If historic production + 25% not equal to R1 860 m, a minimum target of R1 860 m will be given <R1 680 m If historic production + 25% not equal to R1 680 m, a minimum target of R1 680 m will be given 2 20% R6 600 001 R10 999 999 R1 980 001 R3 960 000 R1 860 001 R3 720 000 R1 680 001 R3 360 000 3 15% R11 000 000 R16 500 000 R3 960 001 R5 945 000 R3 720 001 R5 575 000 R3 360 001 R5 040 000 4 10% R16 500 001 R21 999 999 R5 945 001 R6 990 000 R5 575 001 R6 560 000 R5 040 001 R5 945 000 5 5% R22 000 000 to a max of R27 300 000 R6 990 001 to a max of R9 300 000 R6 560 001 to a max of R8 880 000 R5 945 001 to a max of R8 075 000 02

02 GROW YOUR BUSINESS EARN HIGH PERFORMANCE BONUS Product line metric REWARDING QUARTERLY PRODUCTIVITY 40% Health type 1, 100% Risk commission, 100% Invest commission, 20% Insure annual premium income (API). Minimum qualifying requirement Meet 100% or more in at least one product line. Receive a pay-out The production growth pay-out is split between cash and shares. Payment is calculated as a percentage of production in each product line, dependent on the number of product lines achieved: Product lines 100% of target Number of product lines Cash % Shares % Total % 1 0.5% 1.0% 1.5% 2 1.0% 2.0% 3.0% 3 2.0% 4.0% 6.0% 4 2.5% 5.0% 7.5% Where less than 100% of target is achieved in a particular product line (60-99% of target), a bonus will still be paid at 50% of these rates for that product line/s. REWARDING FINANCIAL ADVISER SUPPORT AND GROWTH Life and Invest support bonus Quarterly measurement of the number of supporting Financial Advisers in your panel who have grown their production year on year in the following product lines: Metric Life Invest Support metric R30 000 Life commission for the related quarter. R9 000 Life commission for the related quarter. Growth metric > 100% of prior year for the related quarter. > 100% of prior year for the related quarter. Minimum requirements Receive a pay-out Number of Financial Advisers Business rules Achieve Life line on production growth metric. A minimum of eight Financial Advisers meeting the qualifying metric. A maximum of 20 (25 if 50% linked GICs) linked Financial Advisers. Achieve Invest line on production growth metric. A minimum of eight Financial Advisers meeting the qualifying metric. A maximum of 20 (25 if 50% linked GICs) linked Financial Advisers. Pay-out is split between cash and shares. Payment is a rand value per qualifying Financial Adviser, depending on the number of total qualifiers. Life support and growth Cash Shares Total 8-10 1 000 2 000 3 000 11 + 1 500 3 000 4 500 Number of Financial Advisers Invest support and growth Cash Shares Total 8-10 1 000 2 000 3 000 11 + 1 500 3 000 4 500 Only the Financial Advisers linked to you at the end of the quarter will be taken into account. If a Financial Adviser joined your panel part way though the quarter, you will carry the full quarters growth target for the adviser. 03

02 GROW YOUR BUSINESS EARN HIGH PERFORMANCE BONUS REWARDING FINANCIAL ADVISER INTEGRATION Integration bonus Quarterly integration measurement of the number of supporting Financial Advisers in your panel producing across all product lines. Integration metric Life Commission R30 000 Invest Commission R9 000 Insure API R30 000 Life, Invest and Insure Integration Number of qualifying Financial Advisers Cash Shares Total 5+ 1 500 3 000 4 500 Meet minimum requirements Life, Invest and Insure production growth of more than 60% of target. A minimum of five Financial Advisers meeting the qualifying metric. A maximum of 20 (25 if 50% linked GICs) linked Financial Advisers. Receive a pay-out Pay-out is split between cash and shares. Payment is a rand value per qualifying Financial Adviser, dependent on the total number of qualifiers. Annual HPB = Production growth ANNUAL PRODUCTIVITY Minimum requirement Earn an Annual High Performance Bonus by exceeding your annual HPB target on at least three product lines and achieving a minimum 80% in the remaining product line. Rewarding annual production growth per product line The expected percentage increase per product line is set at the beginning of the year, which varies depending on the preceding months production base of your panel. The annual targets are updated monthly in alignment to linkage movements. The annual percentage increase is subject to change. Receive a pay-out Pay-out in shares only Payment is 1% of qualifying lines production. VESTING OF SHARES Vesting period Tranche % End of 2nd financial year 25% End of 3rd financial year 25% End of 4th financial year 25% End of 5th financial year 25% You must be employed by a Discovery Consulting Services (DCS) franchise as a Business Consultant when the shares vest. If you transfer to another sales distribution channel within Discovery, it is at Discovery s discretion to transfer the shares or not. If there is a break in service, all shares accumulated will fall away. 04

02 GROW YOUR BUSINESS Business rules Only production on linked Financial Advisers will be taken into account. Linked Financial Advisers must be queried within five days of receipt of targets; no adjustments will be made outside the five-day query period. API on Health employer groups has a cap of R3 million a month, for each group. Business Consultants employed in the second or third month of a High Performance Bonus (HPB) quarter are only eligible for a HPB in the next quarter of employment. A sliding scale is applied to large single and recurring premium Invest cases. The cash earnings are calculated quarterly and paid out to the franchise during the next billing month. Phantom shares are calculated quarterly and are accumulated at the end of the financial year. EARN RECOGNITION POINTS SEAL= High Performance Bonus Points + Consistency Booster points + Vitality Booster Points QUARTERLY High Performance Bonus Points Every full R1 000 earned in High Performance Bonus (cash + shares) 1 Annual High Performance Bonus Points High Performance Bonus Points Every full R2 000 earned in High Performance Bonus (shares only) 1 Consistency booster points Encouraging and incentivising business growth consistently through the year. ANNUALLY Number of Quarterly High Performance Bonuses earned Points 1 x High Performance Bonus 0 2 x High Performance Bonus 10 3 x High Performance Bonus 25 4 x High Performance Bonus 40 Vitality booster points You can earn booster points by engaging in Vitality and improving your personal Vitality status. Vitality Status Points Gold or Diamond 10 05

03 ACHIEVE A STATUS You will start at Blue SEAL status and improve your status as you increase your Recognition Points Premier Platinum SEAL Top 10 Platinum SEALs Platinum SEAL 240 or more Recognition Points Gold SEAL 160-239 Recognition Points Silver SEAL 120-159 Recognition Points Blue SEAL Start at Blue status Business rules You must meet all minimum requirements. SEAL statuses are finalised by 25 June 2016. 06

04 REAP THE REWARDS SEAL Booster The SEAL Booster is a percentage boost to the cash portion of HPB earned per quarter. Your 2014-2015 SEAL status will boost the total cash percentage of your High Performance Bonus pay-out in each quarter of the 2015-2016 financial year. Similarly, achievement of SEAL status within the 2015-2016 financial year will result in a boost to the total cash percentage of your High Performance Bonus pay-out in the next quarter. You will not earn Recognition Points for this cash boost. Your SEAL status determines the qualifying percentage boost applicable. SEAL status Cash % boost Premier Platinum 100% Platinum 75% Gold 50% Silver 25% Product out-performance SEAL booster QUARTERLY The Product out-performance SEAL Booster will enable SEALs to earn up to 33% more in cash and shares from the HPB in a specific product line, as follows: % of target achieved % boost 125% - 149% 25% > 150% 33% The percentage boost is applied to the initial cash and shares earned on the productivity High Performance Bonus of the related product. You will not earn recognition points for this booster. Personal Best booster Beat your personal best production quarter Life Invest Insure Production metric Production commission Production commission API at 20% Minimum quarterly requirement R195 000 R97 500 R75 000 Business rule Business Consultant tenure of more than two years. Reward Double your HPB cash portion in the quarter that your personal best is achieved. No Recognition Points are earned on this portion. 07

04 REAP THE REWARDS High Performance Club QUARTERLY CLUB Earn a High Performance Bonus in the quarter and you will be inducted as a member of the High Performance Club where you will be rewarded with: An exclusive and informative seminar in Johannesburg. An awards event in Johannesburg. The opportunity to network with peers and Discovery Executives. There are three High Performance Club events in the year. Trophies or plaques will be couriered to all fourth quarter qualifiers. BE THE GAME CHANGER. Vitality Game Changer Qualify for a High Performance Club and earn tickets into a lucky draw for an all-expenses paid trip for two to the UK to watch an English Premier League football match. Your quarterly Recognition Points will equal the number of tickets earned into the draw. Business rules: All High Performance Club qualifiers will compete together in one lucky draw. You need to attend the dinner to be entered into the draw. Discovery Sales Conference and Gala Dinner Meet all your minimum requirements and the annual average production criteria on all four product lines to qualify for an invitation to attend the Discovery Sales Conference and Gala Dinner. The monthly minimum production criteria are as follows: ANNUALLY Product Minimum Description Health R95 000 Type I, Type II, KeyCare and Vitality API Risk R70 000 Production commission Invest R35 000 Production commission Insure R27 000 100% net API You will get to enjoy: An inspirational and motivational one-day conference. An elegant awards dinner that recognises and celebrates the year s top performers in style. Ongoing rewards Silver, Gold, Platinum and Premier Platinum SEALs earn a range of Ongoing Rewards. Reward Silver SEAL Gold SEAL Platinum SEAL Premier Platinum SEAL Discovery Executive Wellness Prime Wellness experience Prime Wellness experience Prime Wellness experience Prestige Wellness experience Bloomberg Businessweek subscription ü ü ü ü Tickets to the Invest Leadership Summit x x ü ü Dedicated product call centre service teams x x ü ü * Detailed information on how to use the Discovery Executive Wellness experience will be communicated to all qualifiers in a separate document 08

04 REAP THE REWARDS SEAL Conference All Silver, Gold, Platinum and Premier Platinum SEALs will qualify for the four day breakaway to a glamorous destination for the SEAL Conference. CEO Awards 1. This award is given to the Business Consultant who brings in the highest API nationally for a specific product in a financial year. The product lines are: Health CEO Award (API type I). Life CEO Award (API). Invest CEO Award (APE). Insure CEO Award (100% API). Vitality CEO Award (100% API; if written by Discovery Connect, 10% API). Awards for each product line Reward value First position R25 000 Second position R15 000 Third position R10 000 ANNUALLY 2. The Discovery CEO Award goes to the Business Consultant who embraces the value of Integration by achieving the highest overall production across all the product lines. The total production is calculated as follows: Health Type 1 API + Life API + 100% Insure API + Invest APE Discovery CEO Award Reward value First position R25 000 Business Rules Meet minimum production of R3 million API in Health (Type 1) and Life, R3 million APE in Invest, and R780 000 100% API in Insure. Health for each scheme has an annual cap of R15 million. Drive for Discovery Meet the Drive for Discovery competition criteria, which will be announced during the financial year, to earn tickets into the lucky draw. In this exciting competition, we will give away a luxurious motor vehicle to the lucky draw winner at the annual Sales Conference and Gala Dinner in 2016. International trip 2016 The Premier Platinum SEALs and their partners will qualify for an all-expenses paid international incentive trip. Tanzania 9

TECHNICAL DETAILS Discovery reserves the right to make changes to all reward programmes. All dates and scheduling in this document are subject to change. Business Consultants must meet all compliance requirements. The SEAL programme and qualifying criteria need to be met every year within the pre-determined time. To qualify for all recognition events and rewards, you must meet all minimum requirements within the pre-determined time. Only Business Consultants can qualify for the CEO Awards. Competition awards (for example, overseas trips, vouchers) are not transferable and cannot be exchanged for cash or transferred into anyone else s name. If you cannot attend the Discovery Sales Conference and Gala Dinner or any competition draws, you will not receive the prize or award. Monetary values are gross of tax. The recipient is responsible for any tax unless explicitly specified by Discovery. Partners attending the annual overseas trip must be 21 years or older. If you transfer from one distribution channel to another, all your minimum requirements will transfer with you. However, your Recognition Production points will fall away. If you qualify as a winner for any competition, you must be employed as a Business Consultant or a Specialist within the channel you qualified in, at the time of receiving the prize or award. To take part in the recognition programme, you must be employed as a business consultant or a specialist for a minimum of three months. If you are employed for two months or less (in other words, from May 2016 or later), you cannot attend the annual Discovery Sales Conference and Gala Dinner. Queries Please contact the recognition team at Rewards_and_Recognition@discovery.co.za with any queries. 10 GM_34029DIS_02/09/15_V11