Life Insurance/Group

REVISED October 10, 2012

LIFE/GROUP COMMISSION SCHEDULE  INCREASE YOUR INCOME WITH 4 MONTHLY PRODUCTION BONUSES

Effective June 2012 ANNUAL FYC PRODUCTION BONUS**

BMO Life Canada Life Equitable Life La Capitale Manulife Standard Life Transamerica Life Foresters

% OF FYC

A. B. C. D. E.

0 – 2,999 3,000 – 4,999 5,000 – 7,999 8,000 – 11,999 12,000 – 15,999

110% 120% 130% 140% 150%

F.

16,000 - +

160%

* For additional monthly production bonuses, applications must be received at Head Office in the month and subsequently issued. ** All companies’ production pooled PLEASE SIGN AND DATE the “Advisor Production Commitment” found on page 11 (in this package) and submit to the Ten Star Head Office LS Mutual Canada Protection Plan

Pays high FYC commission only* Pays high FYC commission only*

Industrial Alliance Assumption Life RBC Life

Override from TEN STAR 110% (Override direct from I.A. 30%)

140% 140%

Accident + Sickness: Penncorp

1st year40% premium – Renewals 10% of premiums*

TIC Travel Insurance

50% of total commission*

* Refer to company contracts 1/8

REVISED October 10, 2012

Life Insurance/Group

PLUS: New Business

Monthly Production Bonus A

Write $4,000 FYC in any one month Write $5,000 FYC in any one month Write $6,000 FYC in any one month Write $7,000 FYC in any one month

- $100.00 - $200.00 - $300.00 - $400.00

PLUS: New Business

Monthly Production Bonus B

Write a new Universal Life application or Whole Life application or D.I. or C.I., producing $1000 FYC or greater

Write 2 new Universal Life applications or Whole Life applications each producing $1000 FYC or greater Write 3 new Universal Life applications or Whole Life applications each producing $1000 FYC or greater

$100.00 $220.00 $330.00

PLUS: Conversions

Monthly Production Bonus C

Convert a term policy to U.L. or W.L producing $1000 FYC or greater -

$100.00

Convert 2 term policies to U.L or W.L. each producing $1000 FYC or greater - $220.00

Convert 3 term policies to U.L. or W.L. each producing $1000 FYC or greater - $330.00

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REVISED October 10, 2012

Life Insurance/Group

PLUS: Load-up on Term for Future Conversions – Each Month Each application must have a minimum of $350 FYC written in the month and subsequently issued** 1st Application 2nd Application 3rd Application 4th Application Each Additional Application

$10.00 Bonus $15.00 Bonus $20.00 Bonus $25.00 Bonus $25.00 Bonus

PLUS: TEN STAR’s who refer new advisors will be paid a basic production override bonus on the new advisor’s production.

Referral Fees - Override Bonus 20% override for 1st 12 months

** For individual life, C.I. + D.I. production 3/8

REVISED October 10, 2012

Life Insurance/Group

PLUS: TEN STAR Group Benefit Specialists Inc. Commission Scale: Group Lives

Health + Dental

Pooled Benefits (Life, AD+D, LTD, C.I)

5% of claims 4% of claims 3% of claims 2% of claims

60% 60% 60% 60%

10 employees or less 11 to 49 employees 50 to 99 employees 100 or more employees

12 months average claims experience per employee for 2010 Family and Single Health Claims Family and Single Dental Claims

= $1,350 = $1,450

Example of 60 employees 12 months claims = $168,000 @ 3% = $5,040 commission annually

PLUS: Group Production Bonus For each group 10 lives or more = $150 For each group 50 lives or more = $250 For each group 100 lives or more = $500

Total annual commission of $25,000 or more, your individual life production basic bonus will be increased by 2%. Total annual commission of $50,000 or more, your individual life production basic bonus will be increased by 5%.

NOTE: Savings on Group Benefit costs should be applied to the purchase of corporate individual life policies

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Life Insurance/Group

REVISED October 10, 2012

TEN STAR Insurance Brokers Inc. Property & Casualty Referral Program Commercial: Once TEN STAR successfully places the business with a standard Insurer, TEN STAR will pay you a fee of 20% to 50% of the first-year commission, depending on the size of the account.

Personal Lines:

When TEN STAR successfully places personal home and auto insurance with a standard Insurer, the following will be paid: $75 – annual policy premium > $2,000

$50 – annual policy premium > $1,000 $25 – annual policy premium < $1,000 **PLEASE NOTE: when both the auto and property insurance is written, the combined premium is eligible for the fee.

This program is open to all TEN STAR Life and Mutual Fund agents/reps, and licensed staff referring business outside of their department. While we make every attempt to write business, there are limitations due to Insurance Company eligibility criteria such as geographic area, claims frequency, age of building and drivers, liability exposures, etc.

We will ensure that a full explanation is provided to both you and your client if this situation arises. Commercial Referrals Contact Crystal Hawley Commercial Account Representative Phone: (905) 689-7911 x243 Fax: (905) 689-8133 [email protected]

Personal Lines Referrals Contact Violet Whitehouse Manager, Personal Lines Phone: (905) 689-7911 x223 Fax: (905) 689-3246 [email protected]

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REVISED October 10, 2012

Life Insurance/Group

Overview of CANNEX Services TEN STAR is a Registered Deposit Broker. The services provided by Cannex are invaluable for the independent financial advisor who is looking after the best interests of their clients.  Cannex provides rates and values of financial products provided by Canadian financial institutions, such as; • • • •

Fixed interest rate products: o Term Deposits, GIC`s, GIA`s, RRSP`s, RRIF`s, Deposit Accounts Credit Products: o Mortgages, Loans, Credit Cards, and Prime Rates Annuities And much more

TEN STAR is pleased to provide Cannex quotes for a low fee of $5 per annuitant to all contracted TEN STAR advisors who have chosen TEN STAR as their Life Insurance M.G.A. and their Mutual Fund dealer.

TEN STAR Website Advisor Login:

Please contact Mike Ryan to obtain your PIN number to access the Advisor section of our website - [email protected]

Compulife Software

Compulife Software provides up-to-date life insurance premium comparisons and much more! TEN STAR advisors can receive Compulife for a special price of $57 per year.

Contact Mike Ryan to obtain Compulife Comparison Software – [email protected].

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Life Insurance/Group

REVISED October 10, 2012

Figure One – This is NOT a commission grid, rather it is an example of how commission percentages are paid to the Agent and to the MGA Based on $1,000 FYC with an MGA override bonus of 200% of FYC Figure One: Payout Examples (Agent is paid 100% of FYC) TOTAL $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

AGENT BONUS % 120% 130% 140% 150% 160% 170% 180% 190% 200%

AGENT

%

MGA BONUS

%

$2,200 $2,300 $2,400 $2,500 $2,600 $2,700 $2,800 $2,900 $3,000

73% 77% 80% 83% 87% 90% 93% 97% 100%

$800 $700 $600 $500 $400 $300 $200 $100 $0

27 23 20 17 13 10 7 3 0

MGA CONTRACTS REQUIRE MGA’S TO:

1. Supervise Agents a. Our compliance department has to make sure all segregated funds and U.L. investments meet clients’ suitability and risk tolerance* b. Meet all regulatory requirements, needs analysis & disclosures before sale 2. Guarantee agent`s charge backs to insurance companies

3. Provide agents with CSR (Customer Service Representative) 4. Training & Education

*The courts & regulators look at the client’s age. If the client is 60 years old they would expect 60% of investments to be in income funds, such as bond funds, and no more than 40% to be in equities. Exceptions would have to be signed by client, with an explanation. 7/8

REVISED October 10, 2012

ADVISOR PRODUCTION COMMITMENT

Name: _______________________________________________________________ (please print)

I agree to an annual FYC production of ________________________________________________

According to the new bonus schedule, TEN STAR will pay me _________________% of FYC (This will be reviewed every 12 months and reset based on annual production)

SIGN:__________________________________________________________________________________________________ DATE:_________________________________________________________________________________________________

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