SILK INTERNATIONAL PTY LTD INDEPENDENT SALES REPRESENTATIVE INCOME

SILK INTERNATIONAL PTY LTD INDEPENDENT SALES REPRESENTATIVE INCOME & REWARDS PLAN

PERSONAL SALES REBATE Payable to Independent Sales Representatives and above. Rule: Paid on total Personal Business Volume (PBV) for the Calendar Month. Your Income on Personal Activity PAYABLE TO ALL SILK INDEPENDENT SALES REPRESENTATIVES PERSONAL BV SALES $0 - $499 BONUS RATE YOU EARN 20% PERSONAL BV SALES $500 - $999 BONUS RATE YOU EARN 25% PERSONAL BV SALES $1, 000 - $1, 999 BONUS RATE YOU EARN 30% PERSONAL BV SALES $2, 000 AND ABOVE BONUS RATE YOU EARN 35% PAID ON TOTAL PERSONAL BV FOR THE CALENDAR MONTH When you place an order through your own online store, 20% will be deducted at time of order. The remainder will be paid to you on the 15 th of the following month along with any other bonus owed to you. Please note these figures are excluding GST.

DEFINITIONS AND RULES BUSINESS VOLUME (BV): Suggested Retail Price (SRP) excluding GST PERSONAL BV SALES REQUIREMENT (PBVR): $500 (excluding GST) Personal BV per month to qualify for all bonuses other than Personal Sales Rebates. MAINTENANCE OF SMGR ‘GROUP’: All SMGRs & DIRs are required to maintain $25, 000 Group BV in their personal SMGR ‘Group’ each month to earn Leadership Bonus. SDIRs and above maintain their own SDIR ‘Groups’ and are not required to maintain their SMGR ‘Group’. SMGR ‘GROUP’: Refers to yourself and all Independent Sales Representatives in your downline who are not part of another SMGR ‘Group’ which has elevated out of your ‘Group’ TOTAL ORGANISATION: Means ‘Group’ for that Title Level. Eg. LDR = LDR ‘Group’, SLDR = SLDR ‘Group’ , MGR = MGR ‘Group’

TITLE ACHIEVMENT & MAINTENANCE SALES/SPONSORING REQUIREMENTS FOR EACH REWARDS LEVEL: There are 10 Levels - 9 Elevation Levels

REWARD LEVEL 1 SILK INDEPENDENT SALES REPRESENTATIVE ü Receive 20 -35% rebate on Personal / Customer orders (excluding non bonusable items)

REWARD LEVEL 2 SILK INDEPENDENT SALES REPRESENTATIVE ü Receive 20 -35% rebate on Personal / Customer orders (excluding non bonusable items) ü To receive Sponsor Bonus minimum monthly Personal Business Volume (PBV) $500 + 2 Active VIPs/ Independent Sales Representatives/ITPs To Maintain Title: • Total of two personally sponsored Downlines (Level 1) • One order every 6 months to remain active

REWARD LEVEL 2 SILK INDEPENDENT SALES REPRESENTATIVE Please Note Diagram above is an example of how you could achieve/maintain Senior Independent Sales Representative Level status.

SPONSOR BONUS Payable to Senior Independent Sales Representatives and above. Paid for only 24 months of a registered Downline level 1 and 2. BUSINESS VOLUME (BV) SALES RATE Level 1 3% Level 2 3% Please note this is paid when an Independent Sales Representative reaches their PBV (Personal Business Volume) of $500 (excluding GST)

REWARD LEVEL 3 - LEADER ü Receive 20 -35% rebate on Personal / Customer orders (excluding non bonusable items) ü To receive Sponsor Bonus minimum monthly Personal Business Volume (PBV) $500 ü To receive Team Bonus minimum monthly Personal Business Volume (PBV) $500 and Team Business Volume (TBV) $5, 000 + 3 Active VIPs/Independent Sales Reps/ITPs To Maintain Title: • Leaders (LDRs) require a minimum 1 month in 4 (rolling) at $5, 000 Group Business Volume (TBV) Sales with 3 Active Level 1’s in downline • Automatic reassignment to Level 1 Title after 4 consecutive months of non-maintenance

REWARD LEVEL 3 - LEADER Please Note Diagram above is an example of how you could achieve/maintain Leader Level status.

TEAM BONUS Payable to Leaders (LDRs) and above. Paid to uplines on their own total downline group within a Senior Director (SDIR) ‘Group’. Total Organisation Business Volume (TBV) Sales for qualifying Leaders (LDRs) and above includes their total downline within their Senior Director (SDIR) ‘Group’. TOTAL ORGANISATION BUSINESS VOLUME (TBV) SALES RATE $5, 000 to $19, 999 3% $20, 000 to $24, 999 4% $25, 000 and above 5%

REWARD LEVEL 4 – SENIOR LEADER ü Receive 20 -35% rebate on Personal / Customer orders (excluding non bonusable items) ü To receive Sponsor Bonus minimum monthly Personal Business Volume (PBV) $500 ü To receive Team Bonus minimum monthly Personal Business Volume, (PBV) $500 and Team Business Volume, (TBV) $10, 000 + 10 Active Level 1’s To Maintain Title: • Senior Leaders (SLDRs) require 1 month in 4 (rolling) at $10, 000 Team Business Volume (TBV) Sales with 10 Active Level 1’s • Automatic reassignment after 4 consecutive months of non-maintenance • After 4 th consecutive month of non-maintenance, reassignment to Title level relative to activity

REWARD LEVEL 4 – SENIOR LEADER Please Note Diagram above is an example of how you could achieve/maintain Senior Leader Level status.

JUMP START PROGRAM The Silk International Jump Start Program has been set up to reward you for your efforts. If you make it to Senior Leader (Reward Level 4) within 3 months of registration, we will send you a Silk Starter Kit (valued at $300+) completely free of charge.

REWARD LEVEL 5 – MANAGER ü Receive 20 -35% rebate on Personal/Customer orders (excluding non bonusable items) ü To receive Sponsor Bonus minimum monthly Personal Business Volume (PBV) $500 ü To receive Team Bonus minimum monthly Personal Business Volume (PBV) $500 and Team Business Volume (TBV) $20, 000 + 15 Active Level 1’s + 1 x Senior Leader To Maintain Title: • 2 months in 4 (rolling) at $20, 000 Team Business Volume (TBV) with 1 Senior Leader (SLDR) • Reassignment occurs when $20, 000 Team Volume (TBV) has not been met for 3 out of the last 4 completed months

REWARD LEVEL 5 – MANAGER Please Note Diagram above is an example of how you could achieve/maintain Manager Level status.

REWARD LEVEL 6 – SENIOR MANAGER ü Receive 20 -35% rebate on Personal/Customer orders (excluding non bonusable items) ü To receive Sponsor Bonus minimum monthly Personal Business Volume (PBV) $500 ü To receive Team Bonus, Leadership Bonus, Development Bonus & $800 Car Bonus minimum monthly Personal Business Volume (PBV) $500 and Team Business Volume (TBV) $100, 000 + 2 x Senior Leaders To Maintain Title: • 2 months in 4 (rolling) at $25, 000 Team Business Volume (TBV) (Senior Manager (SMGR) ‘Group’) - plus flowback where applicable with 2 Senior Leaders (SLDRs) • Reassignment occurs when $25, 000 Business Volume has not been met for 3 out of the last 4 completed months

REWARD LEVEL 6 – SENIOR MANAGER

LEADERSHIP BONUS When do I receive Leadership Bonus? When you elevate a sponsor to your reward level. SENIOR MANAGER DIRECTOR SENIOR DIRECTOR EXECUTIVE DIRECTOR PRESIDENTIA L DIRECTOR 5% ON G 1 5% ON G 1 5% ON G 2 5% ON G 2 4% ON G 3 3% ON G 4 Payable to Senior Managers (SMGRs), Directors (DIRs), Senior Directors (SDIRs) and above. Paid on downline Senior Managers (SMGRs) (compressed) within Senior Director (SDIR) ‘Group’. Condition: Personal Senior Manager (SMGR) ‘Group’ maintenance for Senior Manager (SMGR) and Director (DIR) only ($25, 000 Group Business Volume BV)

SMGR DEVELOPMENT BONUS Paid only once each Silk Independent Sales Representative. $200 ON LDR $200 ON LDR $300 ON SLDR $300 ON SLDR $1, 000 ON MGR $1, 000 ON MGR $3, 000 ON SMGR $3, 000 ON SMGR Payable to Senior Managers (SMGRs), Directors (DIRs), Senior Directors (SDIRs) and above. Elevation occurs from within Senior Manager (SMGR) ‘Group’. Paid only once each Silk Independent Sales Representative. If elevation is from Silk Independent Sales Representative (CON)/Leader (LDR) to Senior Leader (SLDR), both elevation bonuses are paid i. e. $500

CAR PROGRAM WAIT, THERE’S MORE! Drive a BMW paid for by Silk

REWARD LEVEL 7 – DIRECTOR ü Receive 20 -35% rebate on Personal/Customer orders (excluding non bonusable items) ü To receive Sponsor Bonus minimum monthly Personal Business Volume (PBV) $500 ü To receive Team Bonus, Leadership Bonus, Development Bonus, $1000 Car Bonus & Growth Bonus minimum monthly Personal Business Volume (PBV) $500 and Team Business Volume (TBV) $50, 000 + 2 x Senior Managers To Maintain Title: • 3 months in 6 at $50, 000 Monthly Group Business Volume (BV) (Director (DIR) ‘Group’) - plus flow-back where applicable with 1 Senior Manager (SMGR) • Reassignment occurs when $50, 000 Business Volume (BV) has not been met for 4 out of the last 6 completed months

REWARD LEVEL 7 – DIRECTOR

GROWTH BONUS Payable to Senior Directors (SDIRs) and above. Paid on Sales Growth within Senior Director (SDIR) ‘Group’. Condition: Paid twice yearly on Growth measured Jan/Jul - Year on Year and Jul/Dec - Year on Year. SDIR GROWTH 1% growth 1% of growth 2% growth 1% of growth 3% growth or more 3% of growth %s rounded up 5% or more

REWARD LEVEL 8 – SENIOR DIRECTOR ü Receive 20 -35% rebate on Personal/Customer orders (excluding non bonusable items) ü To receive Sponsor Bonus minimum monthly Personal Business Volume (PBV) $500 ü To receive Team Bonus, Leadership Bonus, Development Bonus & $800 Car Bonus & Growth Bonus minimum monthly Personal Business Volume (PBV) $500 minimum monthly Team Business Volume (TBV) $150, 000 4 ot of 5 consecutive months + 5 Senior Managers/Directors To Maintain Title: • 6 months in 12 at $150, 000 Monthly Team Business Volume (TBV) (Senior Director (SDIR) ‘Group’) - plus flowback where applicable with 4 Senior Managers (SMGRs) or Directors (DIRs) • Reassignment occurs when $150, 000 Team Business Volume (TBV) has not been met for 6 out of the last 12 completed months

REWARD LEVEL 8 – SENIOR DIRECTOR

REWARD LEVEL 9 – EXECUTIVE DIRECTOR ü Receive 20 -35% rebate on Personal/Customer orders (excluding non bonusable items) ü To receive Sponsor Bonus minimum monthly Personal Business Volume (PBV) $500 ü To receive Team Bonus, Leadership Bonus, Development Bonus & $1, 000 Car Bonus & Growth Bonus minimum monthly Personal Business Volume (PBV) $500 minimum monthly Team Business Volume (TBV) $300, 000 4 out of 5 consecutive months + 10 Senior Managers/Directors To Maintain Title: • 6 months in 12 at $300, 000 Monthly Team Business Volume (TBV) • (Executive Director (EDIR) ‘Group’) with 8 Downlines headed by a Senior Manager (SMGR) or Director (DIR) OR • 6 months in 12 at $150, 000 Monthly Group Business Volume (BV) (Senior Director (SDIR) ‘Group’) • PLUS one immediate Downline Senior Director (SDIR) who maintains their own Senior Director (SDIR) ‘Group’ • Reassignment occurs when neither of these methods have been met for 6 out of the last 12 completed months

REWARD LEVEL 9 – EXECUTIVE DIRECTOR

REWARD LEVEL 10 – PRESIDENTIAL DIRECTOR ü Receive 20 -35% rebate on Personal/Customer orders (excluding non bonusable items) ü To receive Sponsor Bonus minimum monthly Personal Business Volume (PBV) $500 ü To receive Team Bonus, Leadership Bonus, Development Bonus & $1, 000 Car Bonus & Growth Bonus minimum monthly Personal Business Volume (PBV) $500 minimum monthly Team Business Volume (TBV) $10, 000 4 of of 5 consecutive months + 2 Executive Directors To Maintain Title: • Monthly BOP Organisation Business Volume (BV) Sales of $833, 000 in 6 of 12 consecutive months with 2 downline Executive Directors (EDIRs) • Own Senior Director (SDIR) ’Group’ must produce $333, 000 in the same 6 of 12 consecutive months • PLUS rolling 12 months of $10 million. Minimum of 2 immediate Downline Executive Directors (EDIRs) must produce minimum of $6 million. Remainder from own Executive Director (EDIR) ‘Group’ (min. $3 million)

REWARD LEVEL 10 – PRESIDENTIAL DIRECTOR

FLOWBACK & PIGGY BACK RULES TITLE SALES FLOWBACK PIGGY BACK RULES When applying Piggy Back rule, Title = Title elevating to For Title maintenance, Car maintenance all Uplines receive the following allowance: When an Upline (A) and a Downline from their Personal Group (B) are running for elevation to the same Title during the same period. Leader (LDR) N/A A can count B as one of their personally sponsored Downlines. Sales must stand alone for their own group. Senior Leader (SLDR) N/A A can count B as one of their personally sponsored Downlines Sales must stand alone for their own group. Manager (MGR) N/A A can count B as one of their personally sponsored Downlines Sales must stand alone for their own group. Senior Manager (SMGR) Eligible sales must come from their own SMGR ‘group’ NEW SMGR: Upon elevation of a new SMGR in immediate downline, the upline SMGR may count the sales of the new group for a period of 8 months, provided their own SMGR ‘Group’ maintains at $20, 000 A and B must stand alone for car qualification. Director (DIR) DIRs may count new DIR elevations for the first 12 months. Upon reassignment of a downline DIR, the DIR has a delayed flowback period of 6 months A can count B’s sales for the first qualifying month only. Then A can count B as a downline leg for the remaining months of qualification, but cannot count the downline sales. Senior Director (SDIR) and above (SDIR, EDIR & PDIR) SDIRs may count new SDIR elevations for the first 24 months This also applies to Income : during the first 24 months, the upline SDIR gets paid SDIR benefits as if no elevation had occurred. Upon reassignment of a downline SDIR there is a delayed flowback period of 12 months A can count B’s sales for the first qualifying month only. Then A can count B as a downline leg for the remaining months of qualification, but cannot count the downline sales.