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ACTIVCompensation PlanThe Activ8 Compensation Plan is a revolutionary concept which allows for truly unmatched potentialfor long-term residual wealth. Designed from its very inception to create real opportunity, the Activ8Compensation Plan identifies and overcomes the industry’s most prevalent concerns and creates anincomparable culture, lifestyle, and income potential. This document is designed to be very detailoriented, allowing for all engaged ARIIX Representatives to fully understand all the bonuses andprocesses that they will be a part of in regards to the Activ8 Compensation Plan. This document isnot intended for recruitment or marketing, but to be a straight forward explanation of the processesinvolved in the technical programming for calculating commissions.CommissionPeriods.Commission Periods of ARIIX begin each Saturday at 12:00 AM (MST), and close each Friday at 11:59 PM (MST). Allthe sales activity that takes place during the week within that time frame will be considered for commission and bonusqualification payout. This weekly payout schedule will create 52 commission periods for every calendar year – designatedby the week and year of that period. For example, the first commission week within 2012 will be designated ‘1/2012’, whilethe 20th commission weekly period in 2012 will be designated ’20/2012.’Individuals who have become Representatives of ARIIX, and subsequently have generated volume either from personalconsumption, or from volume created from purchases and subsequent sales of products to retail customers in excessof 75 points will become eligible for commissions for 4 subsequent weeks. This 4 week period is referred to as a Cycle.Sufficient volume must be generated each cycle to maintain commission eligibility.MembershipTypes.MembersA Member is an individual enrolled with ARIIX. They are able to purchase ARIIX products at a discount, qualify for productdiscounts 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 orinventory. 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 creditsequivalent to 30 USD in product discount in any cycle (most recent past 4 weeks), Members are able to upgrade theirstatus to becoming an ARIIX Representative.RepresentativeAs Members surpass 30 USD in product credit in any cycle, they are able to upgrade their membership type to aRepresentative. As a Representative, they maintain all of the rights and privileges of an ARIIX Member, includingthe ability to enroll other Members, and to qualify for product discounts. Additionally, an ARIIX Representative, ratherthan only earning product credits, is able to earn and generate commissions based upon their activity within theActiv8 Compensation Plan. To become a Representative, a Member must have agreed to and signed PART B of theRepresentative Policies & Procedures document.DistributorBoth Members and Representatives as a group can be called Distributors collectively.

Retail CustomersA Retail Customer is an individual that purchases products directly from an ARIIX Representative or Member. RetailCustomers are not enrolled with ARIIX. The price Retail Customers pay for ARIIX products is determined by theDistributor. The selling price to Retail Customers must be above the purchase price paid by ARIIX Distributors. However,ARIIX strongly recommends that the selling price should be the suggested Retail Price. This allows Representatives theability to make a profit based on difference between their price paid and the price they collected for sold products.Preferred CustomersPreferred Customers are registered with ARIIX, and are therefore able to participate in the Auto-Delivery Program andreceive a 15% discount on the retail price of their product orders through that program. Preferred Customers are notallowed to sponsor, or enroll, Members, and they are not able to earn product credits or commissions through the Activ8Compensation Plan. They are not given any Income Positions within the ARIIX Genealogy Organization. All volumegenerated from Preferred Customers are assigned to the sponsoring Member or Representative and are placed withintheir organization for that Commission Period which would generate the highest commissions for the sponsor of thePreferred Customer for that particular commission period (see Auto-Balancing below).Preferred customers may also purchase a IIX Membership upon enrollment for a one-time cost of 25. This allowsPreferred Customers an additional 15% off the suggested retail price of ARIIX products.IIXMembership & 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 500points in Personal Production Volume in your first 4 weeks. ARIIX also has a number of packs that add value and helpyou qualify with your 500 points as a convenience. Once the IIX Membership is acquired that Member or Representativewill be qualified for special perks and bonuses for life! 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 Activ8Compensation Plan. IIX Memberships can only be achieved within 4 weeks of enrollment as a Member either bypurchase, generating 500 Personal Volume points within the first 4 weeks or through upgrading to a different pack whichincludes the IIX Membership (also only available within the first 4 weeks of enrollment).All ARIIX Members and Representatives are offered the opportunity to participate in the Auto-Delivery Program, whichallows them to receive their product at their door every cycle (four weeks). As an added benefit, active Auto-Deliveriesreceive an additional 15% discount off the retail price. The Auto-Delivery Program is the easiest way to ensure that aMember and Representative remain Active within the Activ8 Compensation Plan. By having both the IIX Membership andparticipating in the Auto-Delivery Program, an ARIIX Member or Representative will be able to combine their discountsfor a total of 30% off of their product purchases (15% for IIX Membership and 15% for an active Auto-Delivery). All AutoDeliveries for a given period are generated the first day (currently Saturday) of that period regardless of the day of theweek in the period that Auto-Delivery run is scheduled. This allows the Member and Representative the ability to seeVolume generated from their downline Auto-Deliveries at the beginning of the period, thus enabling them to focus onvolume generations outside of Auto-Deliveries for that period to achieve rank and earnings qualification levels.Active StatusTo be eligible for commissions or credits, a Distributor must have an “Active” status. To be considered Active, a Distributormust: 1) Accumulate a minimum of 75 Personal Product Volume points (PPV) every Cycle (this Cycle coincides with thefour week Auto-Delivery Program), and 2) be current on their renewal fee of 25. This renewal fee occurs 365 days afterthe enrollment date and annually thereafter.Retail ProfitsAll ARIIX Representatives and Members are given the opportunity to purchase the life changing ARIIX product line at adiscounted Wholesale Price with the Auto-Delivery Program, and retail the same product at a Suggested Retail Price.

That difference between the price purchased and the price sold becomes profit for the ARIIX Representative. With theIIX Membership they will receive an additional 15% discount, which doubles their potential Retail Profits fromretailing the product to their Customers.Loyalty ProgramSome of the products offered by ARIIX can be classified as “Loyalty Products.” The 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,D) products which are only of value when used in tandem with other ARIIX productsHence, these products will be priced competitively in comparisons to competitors inside out outside of the direct sellingchannel. Points will not be associated with Loyalty products. The sponsor of the purchaser of the Loyalty products shallreceive 15% commission of the purchase price of the loyalty product(s) purchased. Additionally, another 15% of thepurchase price will be added to the leadership bonus pools (2/3 (10%) to the Income Position Bonus and 1/3 (5%) to thePay line Bonus). IIX membership discounts will apply for consumers.Base CommissionsAfter activating their first Income Position with at least 150 points of Personal Product Volume (PPV), ARIIXRepresentatives who remain Active will have the opportunity to build their organization in a truly revolutionary andprofitable way. Each Income Position will start with at least 2 lines for placing newly enrolled ARIIX Members. A businessgrows through the addition of additional sales stemming from the volume generated from personal volume, volume fromPreferred Customers, and/or additional Distributors placed below this Income Position. The team line which accumulatesthe 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. Inthe event that the cumulative sum of all volume on all Pay Lines are less than 13,334 points in a week and less thanthe amount of volume on the Power Line, any remaining difference is carried forward on that Power Line into the nextCommission Period.The first time a Pay Line generates the potential of 2,000 (13,334 X .15) in Base Commissions for a Commission Period,that Payline and subsequent Income Position are said to be “Optimized.” Thereafter, a new Pay Line is added to theexisting Income Position; permitting for an unlimited potential number of Pay Lines per Income Position. In addition tothis, the ARIIX Representative will also be given the option of operating a new Income Position within the Pay Line whichreached the optimized 2,000 in Base Commissions from Distributor volume on that Pay Line. This allows for additionalearnings and greater stabilized volume from the depths of that organization. It should be noted that given the fact that aPower line can vary from week to week, there must always be one optimized line that does NOT have a re-entry IncomePosition placed on it.The Activ8 Base Commission model provides a true opportunity to generate unlimited residual income as the numberof potential Pay Lines increases, as well as providing additional Income Centers to produce both wealth and stabilitypreviously unseen.Auto-BalancingAll volume generated from either Preferred Customers or personal purchases in excess of 75 point generationrequirement for a cycle, is Auto-Balanced. This means that this volume is placed where it would generate the greatestamount of commissions or credits from that sponsoring Distributorship during that particular week.Team Lead BonusThe qualifying Representative at Team Lead or above, with at least four Active Personally Sponsored ARIIX Members intheir team, will earn an additional 33.75. By having a IIX Membership, the earning ARIIX Representative will doublethis bonus, giving them 67.50. This bonus is paid out every four weeks that there are four Active Personally Sponsored(have a qualifying order (75/100 pts depending on market) within their qualifying period)*ARIIX Distributors regardless oftheir country of origin. *Qualifying orders are those orders that generate the necessary points (75 or 100 pts depending onmarket) to qualify an account for commission eligibility within a qualifying period--generally every 4 weeks from activatingtheir income position).

MatchingBonus and Gold Member Status.As an added incentive for building any Power or Pay Line, ARIIX Representatives are rewarded through the MatchingBonus. The Matching Bonus gives the ARIIX Representative compensation equal to a percentage of the BaseCommission earned by individuals they have enrolled as Distributors and their subsequent enrollments up to 7 levels or“Generations” deep. Therefore, Individuals personally sponsored by a Representative are considered 1st Generation tothe sponsor. Individuals these 1st Generation people sponsor are 2nd Generation to the initial Representative. Similarto a family tree, the Children of grandparents would be 1st Generation, while their grandchildren would be 2nd generationand so forth down 7 generations.Representatives qualify for their first 3 Generations of Matching Bonus through achieving Gold or Silver Member Status.Gold Member Status is accomplished by enrolling 4 new ARIIX Members with a 150 initial qualification) (and a subsequent75 point minimum Auto-Delivery) within the Distributors first 8 weeks of their initial enrollment as a Member. After thisinitial 8 weeks, Silver Member Status is attained by maintaining a