Last updated 10.03.14

ACTIV8 COMPENSATION PLAN

The ACTIV8 Compensation Plan is a revolutionary concept, which allows for truly unmatched potential for long-term residual wealth. Designed from its very inception to create real opportunity, the ACTIV8 Compensation Plan identifies and overcomes the industry’s most prevalent concerns and creates an incomparable culture, lifestyle, and income potential. This document is designed to be very detail-oriented, allowing for all engaged ARIIX Representatives to fully understand all the bonuses and processes that they will be a part of in regards to the ACTIV8 Compensation Plan. This document is not intended for recruitment or marketing, but to be a straightforward explanation of the processes involved in the technical programming for calculating commissions.

Commission Periods

Commission Periods of ARIIX begin each Saturday at 12:00 AM Mountain Time, and close each Friday at 11:59 PM Mountain Time. All the sales activity that takes place during the week within that timeframe will be considered for commission and bonus qualification payout. This weekly payout schedule will create 52 commission periods for every calendar year, designated by the week and year of that period. For example, the first commission week within 2014 was designated 1/2014 and the 20th commission weekly period in 2012 was designated 20/2012.

Individuals who become Representatives of ARIIX, and subsequently generate volume either from personal consumption or from volume created from purchases and subsequent sales of products to consumers in excess of 75 points will become eligible for commissions for four subsequent weeks. This four-week period is referred to as a cycle. Sufficient volume must be generated each cycle to maintain commission eligibility.

Membership Types

Members

A Member is an individual enrolled with ARIIX. They are able to purchase ARIIX products at a discount, qualify for product discounts through the Auto-Delivery Program and IIX Membership, acquire an Income Position within the tree genealogy, refer other individuals as Members, and are able to earn product credits towards the purchase of their personal product or inventory. Prospects have filled out a Member Application form, agreed to the Terms & Conditions, as well as the Policies & Procedures, and have been sponsored by another ARIIX Member or Representative. Upon earning product credits equivalent to $30 USD in product discount (earned from sales volume or for selling specific Packs with corresponding Product Credit) in any cycle (most recent past four weeks), or by attaining Gold status, Members are able to upgrade their status to an ARIIX Representative by agreeing to a second policy and procedure document applicable for Representatives only.

Representative

As Members surpass $30 USD in product credit in any cycle, they are able to upgrade their membership type to a Representative. As a Representative, they maintain all of the rights and privileges of an ARIIX Member, including the ability to enroll other Members and to qualify for product discounts. Additionally, an ARIIX Representative, rather than only earning product credits, is able to earn and generate commissions based upon their activity within the ACTIV8 Compensation Plan. To become a Representative, a Member must have agreed to and signed PART B of the Representative Policies & Procedures document. Last updated 10.03.14

Distributorship

The business owned by a Representative is referred to as a Distributorship.

Direct Customers

A Direct Customer is an individual that purchases products directly from an ARIIX Representative or Member. Direct Customers are not enrolled with ARIIX. The price Direct Customers pay for ARIIX products is determined by a Representative but must be at or above the purchase price paid by the ARIIX Representative. However, ARIIX strongly recommends that the selling price should be the suggested retail price which is approximately 43% above the best price a Member or Representative can buy ARIIX products given the 15% discount they receive if they are on Auto-Delivery, and an additional 15% off if they are IIX Members. This allows Representatives the ability to make a retail profit based on the difference between their price paid and the price they collected for sold products.

Preferred Customers

Preferred Customers are registered with ARIIX, and are therefore able to participate in the Auto-Delivery Program and receive a 15% discount on the retail price of their product orders through that program. Preferred Customers are not allowed to sponsor or enroll Members, and they are not able to earn product credits or commissions through the ACTIV8 Compensation Plan. They are not given Income Positions within the ARIIX Genealogy Organization. All volume generated from Preferred Customers are assigned to the sponsoring Member or Representative and are placed within their organization for that Commission Period which would generate the highest commissions for the sponsor of the Preferred Customer for that particular commission period (see Auto-Balancing, below).

Preferred customers may also purchase a IIX Membership for a one-time cost of $25. This allows Preferred Customers an additional 15% off the suggested retail price of ARIIX products.

IIX Membership & Auto-Delivery

Upon enrollment, the new ARIIX Member has the opportunity to purchase or acquire a IIX Membership (pronounced "Two-X"). The cost of the IIX Membership upon enrollment is $150 USD if purchased separately or by generating 500 points in Personal Production Volume in your first 4 weeks. ARIIX also has a number of packs that add value and help you qualify with your 500 points as a convenience. Once the IIX Membership is acquired that Member or Representative will be qualified for special perks and bonuses! With the IIX Membership they will receive an additional 15% discount on the retail price of all product purchases as well as double their earnings from all Bonuses within the ACTIV8 Compensation Plan. IIX Memberships can only be achieved within 4 weeks of enrollment as a Member either by purchasing the membership outright, generating 500 Sales Volume Points, or through upgrading to a different pack which includes the IIX Membership. Any of which must be done within the first four weeks of membership.

All ARIIX Members and Representatives are offered the opportunity to participate in the Auto-Delivery Program, which allows them to receive their product at their door every cycle (four weeks). As an added benefit, individuals with active Auto Deliveries receive an additional 15% discount off the retail price. The Auto-Delivery Program is an easy way to ensure that Representatives remain active within the ACTIV8 Compensation Plan. By having both the IIX Membership and participating in the Auto-Delivery Program, an ARIIX Member or Representative will be able to combine their discounts to give them a total of 30% off of their product purchases (15% for IIX Membership and 15% for an active Auto-Delivery). All Auto Deliveries for a given period are generated the first day (currently Saturday) of that period regardless of the day of the Last updated 10.03.14

week in the period that Auto-Delivery run is scheduled. This allows the Member and Representative the ability to see Volume generated from their downline Auto-Deliveries at the beginning of the period, thus enabling them to focus on volume generations outside of Auto-Deliveries for that period to achieve rank and earnings qualification levels.

Active Status

For a Representative to be eligible to earn Base Commissions or a Member to earn credits, Members and Representatives must have an "Active" status. To be considered Active, a Member or Representative must: 1) Accumulate a minimum of 75 Personal Product Volume points (PPV) every cycle (this cycle coincides with the four week Auto-Delivery Program) and 2) be current on their renewal fee. This renewal fee occurs 365 days after the enrollment date and annually thereafter.

To be eligible to earn "Bonus" commissions, the Representative must have an "Active" status. A Representative need not give up any ownership or commissions in any other Network Marketing Company to be eligible for Bonuses in the ARIIX compensation plan, provided all such effort was done before joining ARIIX.

Renewal Fee

A renewal fee (currently $25 USD) is due annually on the anniversary date of ARIIX Members and Representatives. This renewal fee covers administration fees for contract renewals, and signifies that Members and Representatives wish to renew their current Policies & Procedures contract(s) with ARIIX. Failure to pay the renewal fee will serve as notification of cancellation of their Distributorship by the Member or Representative to ARIIX. As a cancelled Distributorship, the Member or Representative is subject to having their Income Position removed.

It is the responsibility of the Representative to pay the renewal fee notwithstanding ARIIX may, for the convenience of the Representative, automatically bill for the renewal fee on the Friday following their anniversary date. In the event a renewal fee is not paid on or before their anniversary, ARIIX shall grant a 30-day grace period to individuals to pay the renewal fee. After the grace period, a Representative shall not accrue nor be eligible for commissions since such ineligibility will result in increased commission paid to the remaining active Representatives. However, individuals will be allowed to continue to purchase ARIIX products at the price level they had prior to the renewal.

Should both parties agree to allow the renewal fee to be paid after the anniversary and grace period, the Distributorship shall be bound by the latest policy and procedure rather than the one originally agreed upon.

The ACTIV8 plan has dynamic compression and Bonuses that distribute commissions to others in the event individuals are ineligible for commissions. Since paying the renewal fee is part of commission eligibility, individuals who do not pay their renewal fee shall not accrue commissions for any time the renewal fee went unpaid which includes the grace period.

Retail Profits

All ARIIX Representatives and Members are given the opportunity to purchase life-changing ARIIX product lines at a discounted wholesale price with the Auto-Delivery Program, and sell the same product at a suggested retail price. The difference between the price purchased and the price sold becomes profit for the ARIIX Representative. With the IIX Membership they will receive an additional 15% discount, which Last updated 10.03.14

doubles their potential retail profits from retailing the product to their Customers.

Loyalty Program

Some of the products offered by ARIIX can be classified as Loyalty Products. These products are:

A) products that are difficult to differentiate in the Marketplace

B) products to which consumers are very price sensitive

C) products which are not consumable to a high degree or

D) products which are only of value when used in tandem with other ARIIX products.

Hence, these products will have fewer points per dollar than normal, but this will allow items to be priced competitively both inside and outside of the direct selling channel.

Base Commissions

After activating their first Income Position with at least 150 points of Personal Product Volume (PPV), ARIIX

Representatives who remain Active will have the opportunity to build their organization in a truly revolutionary and profitable way. Each Income Position will start with at least two lines for placing newly enrolled ARIIX Members. A business grows through the addition of additional sales stemming from the volume generated from personal volume, volume from Preferred Customers, and/or additional Members and Representatives placed below this Income Position. The team line which accumulates the greatest volume is identified as the "Power Line." All subsequent lines are termed "Pay Lines."

Base Commissions are 15% of the volume generated from all Pay Lines, up to $2,000 USD per Pay Line, per week. In the event that the cumulative sum of all volume on all Pay Lines, is less than 13,334 points in a week and less than the amount of volume on the Power Line, any remaining difference is carried forward on that Power Line into the next Commission Period.

Earning another Pay Line: The first time a Pay Line generates the potential of $2,000 (13,334 X .15) in Base Commissions for a Commission Period, that Pay Line and subsequent Income Position are said to be "Optimized." Thereafter, a new Pay Line is added to the existing Income Position, permitting for an unlimited potential number of Pay Lines per Income Position.

The added Pay Line is available for immediate use, and shall also be used for auto-balancing. No additional sales requirements are necessary to be paid on additional Pay Lines.

Earning a re-entry: If enough volume from Members and Representatives (excluding personal purchases and Preferred Customer purchases) is generated to Optimize a Pay Line, the ARIIX Representative will also be given the option of operating a new Income Position within the Pay Line which reached the Optimized $2,000 in Base Commissions from volume on that Pay Line. This allows for additional earnings and greater stabilized volume from the depths of that organization.

The following conditions apply to re-entries:

1. A once-in-a-lifetime Activation order of 150 points for each new "re-entry" is required.

2. Once placed and activated, this new Income Position will be eligible for commissions beginning the very next commission week regardless of the Representative's Auto-Delivery cycle.

3. Going forward, all Income Position are on the same original cycle.

4. A Representative may elect to accumulate a minimum of 150 Personal Product Volume points (PPV) every cycle (rather than 75 for a single Income Position), in order to make all activated.

 

Income Positions commission-qualified regardless of how many Income Positions there are.

5. Re-entries have no expiration and no time requirement to place provided the possessing Representative maintains the annual renewal fee.

6. Re-entries cannot be transferred to another Representative

7. Multiple re-entries cannot be placed together in such a manner that the commissions generated from such grouping increases the commission payout over 55% of the sales volume from that organizational structure.

8. All unplaced re-entries shall be part of the Distributorship in the event of a sale or transfer or the business ownership.

9. Re-entries may be moved after they have been placed within 10 days of placement, or anytime there is NO volume and no active Distributors placed below the re-entry.

10. There must always be one Optimized line that does NOT have a re-entry Income Position placed on it.

Earning of a Power Re-Entry™: A Power Re-Entry™ is an industry first for ARIIX’s ACTIV8 compensation plan. This special re-entry is earned by producing 1500 points in your first 4 weeks after joining ARIIX. For your convenience, ARIIX has created the Ultimate Pack or, during limited time offers, Upgrade Packs, to make generating 2000 points more convenient. The unrestricted Power Re-Entry™ allows Representatives to:

o Earn two Re-Entries with the Optimization of their first Income Position rather than the just one

o Place the Power Re-entry on their Power Line; hence no longer requiring rule #10 above

o Place the Re-entry on any of their lines under anyone (excluding inserting) or

o Place the Re-entry under any cross-line individual

While the Power Re-Entry™ is a one-time usage, it can generate an unlimited number of additional re-entries below it, extending its earning potential to infinite! Even more amazing, Representatives may elect to partner with any ARIIX Representatives with their Power Re-Entry™, an industry first! This Patent-pending design has eliminated cross-lines!

All the normal conditions of a Re-Entry apply to the Power Re-entry. But in the event that a Power Re-Entry™ is placed crossline in a Representative’s organization, the following conditions apply:

1. In order to protect the fundamental integrity of the sales organization tree, Representatives who choose to place their Power Re-Entry™ in a crossline position must have a minimum of 13,334 TOTAL VOLUME POINTS generated at or below their original Income Position each week, in order to earn commissions from the Power Re-Entry™ and all subsequent Re-Entries placed below it. TOTAL VOLUME is inclusive of Preferred Customers, Members, Representatives and Personal Volume generated in the Representative’s PLACEMENT organization. In the event a Representative does not have the minimum of 13,334 TOTAL VOLUME POINTS generated at or below their original Income Position in a given commission week, their crossline Power Re-Entry™ will be ineligible to earn commissions that week. All volume generated under the Power Re-Entry™ shall still be paid on for all positions above the Power Re-Entry™ as typical.

2. The Power Re-Entry™ may only be placed in OPEN positions and may not be inserted.

3. As always, Matching Bonus follows the sponsorship tree, not the placement tree. This carries over to the placement of Power Re-Entries™ in crossline positions. Only the original sponsor shall earn Matching Bonus on all combined earnings, including earnings from the Power Re-Entry™.

The ACTIV8 Base Commission model provides a true opportunity to generate unlimited residual income as the number of potential Pay Lines increases, as well as providing additional Income Centers to produce both wealth and stability previously unseen. Last updated 10.03.14

Auto-Balancing

All volume generated from either Preferred Customers or personal purchases in excess of the 75-point generation requirement for a cycle, is Auto-Balanced. This means that this volume is placed where it will generate the greatest amount of commissions or credits for the sponsoring Distributorship during that particular week.

This Auto-Balancing feature will occur for all orders except the initial order that activates the first income position. Any excess volume from this activation order will be paid in an ASAP Bonus to the sponsor in an amount equal to (or greater from specific packs) what the new member would have received from this auto-balanced volume.

Bonuses

Bonuses represent additional compensation in the ACTIV8 Compensation Plan. They are designed to earn people checks quicker than from Base Commissions alone, encourage leadership assistance to downlines and provide additional compensation for dedicated leaders in ARIIX.

As such, any "Bonus" paid in the ACTIV8 Compensation Plan is conditional upon dedicated effort towards the building of ARIIX exclusively. This is not to say that Bonuses shall be immediately terminated should a Representative elect to join or participate in another MLM; however, lack of active participation in ARIIX while actively publicly participating in another MLM that is deemed as detrimental to ARIIX's reputation due to statements made in public, may then result in the termination of all ACTIV8 Bonuses. Conditions for determining the forfeiture of ones Bonuses include direct references to ARIIX in regards to:

 The extent of the publicity of the departure,

 Speaking ill of ARIIX, Products, Management, and/or field leaders,

 Disclosing confidential information,

 Failure to comply with Policies & Procedures,

 Direct comparisons or contrasts of ARIIX with the competitor, and

 The degree to which ARIIX sales, brought by the Representative, have diminished to the alternative competitor.

As a professional courtesy and in an attempt to help Representatives maintain their Bonuses, ARIIX shall notify any leaders of significant size in ARIIX, who elect to publicly build another business, if such publicity places in jeopardy their Bonuses with ARIIX.

Notwithstanding the potential loss of Bonuses, provided the terms of your agreements are maintained, a Representative shall continue to receive Base Commissions regardless of the publicity of their departure.

Team Lead Bonus

The qualifying Representative at Team Lead or above, with at least four Active personally sponsored ARIIX Members in their team, will earn an additional $33.75. By having a IIX Membership, the earning ARIIX Representative will double this bonus, giving them $67.50. This bonus is calculated and subsequently paid out based on the past rolling four weeks to any Representative that has personally sponsored four credit- or commission-eligible ARIIX Members, regardless of their country of origin. These qualifications are triggered by the Auto-Delivery process that takes place on a four-week cycle after their initial order for three out of the required four. One person can count if it is their initial qualifying order. Last updated 10.03.14

Matching Bonus and Gold Member Status

As an added incentive for building any Power or Pay Line, ARIIX Representatives are rewarded through the Matching Bonus. The Matching Bonus gives the ARIIX Representative compensation equal to a percentage of the Base Commission earned by individuals they have enrolled as Representatives and their subsequent enrollments up to seven levels or "generations" deep. Therefore, individuals personally sponsored by a Member or Representative are considered first generation to the sponsor (unless the individual introducing the prospect grants sponsorship to another). The individuals these first generation people sponsor are second generation to the initial Representative. Similar to a family tree, in which the children of grandparents are considered the first generation, while their grandchildren would be second generation, and so forth, down seven generations.

Representatives qualify for their first 3 Generations of Matching Bonus through achieving Gold or Silver Member Status. Gold Member Status is accomplished by an active Member or Representative enrolling four new ARIIX Members with a 150-point initial qualification, and a subsequent 75-point minimum Auto-Delivery, within the first 8 weeks of enrollment as a Member. After this initial eight weeks, Silver Member Status is attained by maintaining a minimum of four active personally sponsored Members or Representatives each cycle. Qualifying to earn the fourth and fifth generation of the Matching Bonus requires Base Commission earnings of $500 USD and $1,000 USD respectively each week. The sixth generation requires having at least one Optimized Income Position per week, and the seventh generation is granted with a second Optimized Income Position per week. A IIX Membership doubles the matching percentage on all qualified generations. Sponsorship Tree Matching Beyond Gold or Silver Membership Requirement Match % IIX % Qualifications Generation 1 7.5% 15% Gold or Silver Member Status Only Generation 2 5.0% 10% Gold or Silver Member Status Only Generation 3 2.5% 5% Gold or Silver Member Status Only Generation 4 2.5% 5% $500 in Base Commissions Generation 5 2.5% 5% $1,000 in Base Commissions Generation 6 2.5% 5% 1st Optimized Income Position Generation 7 2.5% 5% 2nd Optimized Income Position 4 Lines on a single Income Position