The Nextage compensation plan has 3 components: 1) Franchisee allocation - franchisees receive a percentage of transaction fees and commissions. 2) Commission on personal production - brokers receive a commission percentage based on production tiers. Higher tiers pay higher percentages. 3) Sales bonuses on team production - uplines earn bonuses on downline production based on leadership tiers and commission differences ("spreads"). Bonuses increase with lower generations.

1. Understanding the Compensation Plan

4. GCI/NCI Example: GCI $10,000 less 6 ½% $650 less $250 $250 = NCI $9,100

6. Franchisee Allocation Example: GCI $10,000 less 6 ½% $650 less $250 $250 = NCI $9,100 Franchisee Receives: 1.625% of GCI $162.50 Transaction fee $250. 3.5% of NCI $318.50 Total $731.00

7. 2. Commission on Personal Production Commissions on personal production are based on the broker’s/agent’s commission split & the transaction’s NCI. Commission splits range from 55% of NCI to 80% of NCI. Promotions to higher commission splits are based on achieving certain levels of production established by the franchisee. The following chart provides recommended promotion guidelines*. *Benchmarks will vary depending on the marketplace in which the franchisee is located.

8. Commission on Personal Production Benchmarks will vary depending on the marketplace in which the franchisee is located. 6 closed sides or $45,000 GCI in any rolling quarter 80% 5 closed sides or $37,500 GCI in any rolling quarter 77% 4 closed sides or $30,000 GCI in any rolling quarter 74% 3 closed sides or $22,500 GCI in any rolling quarter 71% 2 closed sides or $15,000 GCI in any rolling quarter 68% 3 closed “mentored” sides 65% Entry Split for Sales Associates New to the Business (“Newbie’s”) 55% Benchmark Requirements to be completed for Promotion from Previous Commission Split Percentage Based on the Number of “Closed Transaction Sides” Completed or “GCI” Generated in a rolling quarter. Split Percentage Payable to Sales Associate

9. Commission on Personal Production Example GCI $10,000 less 6 ½% $650 less $250 $250 = NCI $9,100 Agent’s commission split: 74% $9,100 x 74% $6,734

10. 3. Sales Bonuses on Team Production Sales bonuses are paid to the upline Team Leaders of a broker or agent who close a transaction side. Sales bonuses are based on the upline Team Leader’s Leader Contract level and the transaction NCI. Leader Contract levels and requirements for promotion from one level to the next are as follows (all production is based on a rolling quarter):

11. Sales Bonuses on Team Production 6 direct active agents and 80 team agents 80 team closed sides or $600,000 GCI (rolling ¼) 80% Executive Sales Director (ESD) 5 direct active agents and 50 team agents 50 team closed sides or $375,000 GCI (rolling ¼) 77% National Sales Director (NSD) 4 direct active agents and 30 team agents 30 team closed sides or $225,000 GCI (rolling ¼) 74% Divisional Sales Director (DSD) 3 direct active agents and 15 team agents 15 team closed sides or $112,500 GCI (rolling ¼) 71% Regional Sales Director (RSD) 2 direct active agents and 5 team agents 5 team closed sides or $37,500 GCI (rolling ¼) 68% Senior Sales Director (SSD) 1 Active Nextage agent 1 closed side – individual or Team 65% Sales Director (SD) Entry Level 55% Sales Consultant (SC) Additional promotion requirements Requirements for promotion from previous level Leader Contract Percentage Nextage Leader Contract

13. Diagram of Previous Example Sally – ESD (80%) Leader’s Contract Tim – 68% Commission Split 12% spread (80% - 68%)

15. Diagram of Previous Example Sally – ESD (80%) Leader’s Contract Tim – DSD (74%) Leader’s Contract Jerry – 68% Commission Split 6% spread (80% - 74%) 6% spread (74% - 68%)

16. Other Examples Sally – ESD (80%) Leader’s Contract Tim – DSD (74%) Leader’s Contract Jerry – SSD (68%) Leader’s Contract 6% spread (80% - 74%) 6% spread (74% - 68%) Diane – 65% Commission Split 3% spread (68% - 65%)

17. Other Examples Sally – ESD (80%) Leader’s Contract Tim – DSD (74%) Leader’s Contract Jerry – SD (65%) Leader’s Contract 6% spread (89% - 74%) Diane – 71% Commission Split 3% spread (74% - 71%)

19. Diagram of Previous Example Sally – ESD (80%) Leader’s Contract Tim – SSD (68%) Leader’s Contract 1 st Generation 12% spread

20. Generation Sales Bonus Plan ¼% of NCI 6 th ¼% of NCI 5 th ½% of NCI 4 th 2 ¼% of NCI 3 rd 3 ¾% of NCI 2 nd 7 ½% of NCI 1 st % Sales Bonus paid to Team Leader Generation Level

22. Diagram of Previous Example Sally – ESD (80%) Leader’s Contract Tim – SC (55%) Leader’s Contract No Generation 25% spread Note: Tim only has to recruit 1 agent and have 1 closing (personal or Team) to advance to the Sales Director level. Then he will become Sally’s first generation.

24. Diagram of Previous Example Sally – ESD (80%) Leader’s Contract Tim – DSD (74%) Leader’s Contract Jerry – 68% Commission Split 6% spread 6% spread 2 nd Generation 1 st Generation Jerry closes a transaction personally: Even though Jerry only has a Sales Consultant Leader’s Contract, since he is the selling agent in this transaction he is considered to be a Sr. Sales Director.

25. Other Examples Sally – ESD (80%) Leader’s Contract Tim – DSD (74%) Leader’s Contract Jerry – 55% Leader’s Contract 6% spread 3% spread 2 nd Generation 1 st Generation Diane – 71% Commission Split Diane, Jerry’s only recruit, has a closing – Jerry’s 1 st :

26. Other Examples Sally – ESD (80%) Leader’s Contract Tim – DSD (74%) Leader’s Contract Jerry – 65% Leader’s Contract 6% spread 3% spread Diane – 71% Commission Split Because Diane had a closing, Jerry becomes a Sales Director:

27. Other Examples Sally – ESD (80%) Leader’s Contract Tim – DSD (74%) Leader’s Contract Jerry – SD (65%) Leader’s Contract 6% spread 3% spread Diane – 71% Commission Split 3 rd Generation 1 st Generation 2 nd Generation As a Sales Director, Jerry earns a 1 st Generation Sales Bonus: