COMPENSATION PLAN BREAKDOWN

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1 COMPENSATION PLAN BREAKDOWN There are three easy steps to starting your business with LifeFX: STEP 1: ENROLL IN LifeFX There is no product purchase required in order to become an Independent Distributor with LifeFX. Upon enrollment as a LifeFX distributor, you will be required to purchase a Global Software System (GSS) for $49.95 US. You will receive a personal LifeFX marketing website, an online retail store, and unlimited access to full back office service for 12 months. The annual renewal fee for these services is $49.95 US a year. After you have completed the application process, you will be an Independent Distributor with LifeFX. You will now have access to your Business Development Center (BDC) and can begin building your business. STEP 2: ORDER PRODUCT (optional) LifeFX is a product driven company. Any and all earned commissions and overrides are based on the sale and consumption of product. While there is no product purchase required, your business will probably grow and flourish more quickly if you are a satisfied product user and have product on hand to share with others. We recommend that you choose the LifeFX Product Package that best suits the goals and needs for your business. Bonus Volume (BV) The LifeFX Compensation Plan is built around the retail salability of our products. In order to keep the products competitively priced at the retail level and to ensure a profitable wholesale to retail margin for our distributor base, we assign a point value (called Bonus Volume or BV) to each of our products. The compensation program is based on the accumulation of these points. LifeFX gives each product the maximum points possible to create the ideal balance between significant retail profits and substantial override income for our distributors. Every time product is purchased Bonus Volume points are generated. Activating your BDC In order to hold and accumulate the sales volume generated within your down line Sales Team, your BDC must be activated. A BDC that has been activated will continue to hold and accumulate volume as long as it remains active by meeting the minimum ongoing maintenance requirements. A BDC is activated with a product order totaling 100 BV points or more. You will receive a six (6) week initial activation period for your first 100 BV order. After this initial period, the activation period runs every four (4) weeks***. BDCs without product orders (inactive) or product orders that are not paid for within the prescribed time

2 limits do not hold accumulated volume past the end of the weekly pay period in which they were generated. ***In addition, any new distributor that joins LifeFX and purchases a Silver, Gold or Platinum Package, your initial product purchase will be allowed to prequalify your auto ship as follows As a Silver Distributor (100BV), your auto ship will be waived for 4 weeks. As a Gold Distributor (200BV), your auto ship will be waived for 4 weeks. As a Platinum Distributor (300BV), your auto ship will be waived for 6 weeks. Each pay period runs from 12:00 Midnight Central Time each Monday (Sunday night) through 11:59 p.m. Central Time the following Sunday, with all funds due at the home office by the close of business on the following Wednesday. ONGOING MINIMUM MAINTENANCE REQUIREMENTS This is a retail-marketing program. Distributors may purchase product and earn profits through retail sales at any time with no maintenance requirement. In order to continue accumulating and holding volume, and earning bonus commissions, a distributor must reactivate their BDC after the initial 6 weeks and every 4-week activation period thereafter. In order to continue accumulating and holding volume and earning Personal Sale Bonuses and override commissions in the two-team program, a BDC must reactivate their BDC every 4-weeks and every activation period thereafter. In order to maintain ongoing activation, a BDC must have a minimum of 50 PV points in each activation period or 100 PV points to qualify for matching bonus commissions. In the event that a BDC does not meet and maintain the minimum requirements within the prescribed time frame, any accumulated volume will be flushed and no commission check will be earned. In the event someone reactivates (places and pays for their order) after this has happened, volume will once again start to accumulate (no previously flushed volume will be reinstated) and commissions can be earned. STEP 3: GENERATE AN INCOME WITH LifeFX In order to earn commissions under the LifeFX compensation plan, you must advance to a commissionable rank and you must become Fully Qualified. Advance to a Commissionable Rank: Silver, Gold or Platinum Silver Rank There are two ways to earn Silver rank: On day of enrollment, an initial 100 BV order or 200 accumulated BV within a 3 month period. 1. Day of enrollment, order the 100 BV Silver Value Package. If you order less than 100 BV points in Personal Volume (PV)* on the day of enrollment, you may obtain Silver rank by the following: 2. Accumulate at least 200 BV points in Personal Volume (PV)* within a 3 month period. PV point

3 accumulation is ongoing from the moment you enroll in your BDC and can be achieved at any time. Your BDC must remain active for ongoing accumulation. If your BDC becomes inactive, all accumulated PV points will be reset to zero. Gold Rank There are two ways to earn Gold rank: On day of enrollment, an initial 200 BV order or 300 accumulated BV within a 3 month period. 1. Day of enrollment, order the 200 BV Gold Value Package. If you order less than 200 BV points in Personal Volume (PV)* on the day of enrollment, you may obtain Gold rank by the following: 2. Accumulate at least 300 BV points in Personal Volume (PV)* within a 3 month period. PV point accumulation is ongoing from the moment you enroll in your BDC and can be achieved at any time. Your BDC must remain active for ongoing accumulation. If your BDC becomes inactive, all accumulated PV points will be reset to zero. Platinum Rank There are two ways to earn Platinum rank: On day of enrollment, an initial 300 BV order or 400 accumulated BV within a 3 month period. 1. Day of enrollment, order the 300 BV Platinum Value Package. If you order less than 300 BV points in Personal Volume (PV)* on the day of enrollment, you may obtain Platinum rank by the following: 2. Accumulate at least 400 BV points in Personal Volume (PV)* within a 3 month period. PV point accumulation is ongoing from the moment you enroll in your BDC and can be achieved at any time. Your BDC must remain active for ongoing accumulation. If your BDC becomes inactive, all accumulated PV points will be reset to zero. *Personal Volume (PV): This is your personal sales volume and refers to the product orders that are processed through your BDC and credited to your Distributor ID number. QUALIFY YOUR BDC TO EARN COMMISSIONS To qualify your BDC to earn commissions; you must personally sponsor two (2) distributors one on your Left Sales Team and one on your Right Sales Team. In order to count for qualification, these sponsored distributors must be activated There Are 4 Ways to Earn Money with the LifeFX Compensation System: 1. Retail Profits 2. Pace Setter Bonus 3. Binary Bonus 4. Leadership Matching Bonus

4 1. RETAIL PROFITS As a LifeFX Distributor, you may purchase products at wholesale and earn a retail profit of 20% on every product you sell. With the purchase of your Global Software System, you will receive a state-of-the-art Online Retail Cart allowing you to make sales directly through your personal marketing website. When a customer places an order through your online retail cart, LifeFX processes the payment and drop-ships the retail order to your customer; you receive the retail sale profit. 2. PACE SETTER BONUS As a LifeFX Distributor, if your initial three personally sponsored distributors purchase all the same rank of a sliver, gold or platinum, within four full weeks from your signup date, you will achieve the Pace Setter Bonus! Once this has been achieved you will be entitled to receive one of the following bonuses: Initial Pace Setter Bonus: Rank Bonus Earned Silver $100 Gold $300 Platinum $500 If your initial three personally sponsored distributors are mixed ranks, within four full weeks from your signup date, you will be paid as follows. For example, if two Platinum s and one Gold are sponsored, you will be entitled to a bonus of $320. Triple Play Bonus: Rank Bonus Earned Silver $25 Gold $70 Platinum $125 After the initial four full weeks have passed, you are entitled to a bonus for every three distributors you personally sponsor, without any time limit! If all three ranks are the same, the bonus is as follows: Rank Bonus Earned Silver $50 Gold $150 Platinum $250

5 If all three are mixed ranks, you will be paid as follows. For example, if two Platinum s and one Gold are sponsored, you will be entitled to a bonus of $ Rank Bonus Earned Silver $12.50 Gold $37.50 Platinum $62.50 The Initial Pace Setter and Triple Play bonus calculation is based on the date and time the order in which your personally sponsored distributors placed their order. 3. BINARY BONUS You may begin to develop two sales teams under your BDC by introducing others to LifeFX and our great products and opportunity. As they register their BDCs under you, you will develop a Left Sales Team and a Right Sales Team. You can earn income based on the product sales within your two teams. To be eligible to earn binary bonuses, your BDC must be at a commissionable rank (Silver, Gold or Platinum), active, qualified, and you must have an active full back office service. After your BDC has met these qualifications, you are eligible to receive weekly binary bonuses on your Bonus Volume (BV) based upon a ratio. Once you have achieved 350BV in your Left sales team and 350BV in your Right sales team you will earn a cycle. Any accumulated BV that remains unused after commissions have been calculated will carry forward for payment in future weeks as long as you remain active.* Silver Rank earns $20 per cycle Gold Rank earns $30 per cycle Platinum Rank earns $40 per cycle Pre Launch Binary Promotion During our pre launch period, cycles will be earned when you have achieved 300 BV on your Left sales team and 300 BV on your Right sales team.

6 Example 1: At the end of the commission week, your Left Sales Team s accumulated volume is 900 BV, and your Right Sales Team s accumulated volume is 3000 BV. 900 BV from your Left sales side is payable as BV because there is the equivalent amount available on your Right sales side. A binary bonus will be paid using 900 BV from your Left side and 900 BV from your Right side. In this scenario you would earn $120 (3 cycles x $40 = $120US) as a Platinum, $90 as a Gold (3 cycles x $30 = $90US) and $60 as a Silver (3 cycles x $20 = $60US). After commissions have been paid, your Left Sales Team carryover volume would total 0 BV, and your Right Sales Team carryover volume would total 2100 BV (3000 BV 900 BV = 2100 BV). This carryover volume will be available for future commission calculations as long as you remain active Example 2: At the end of the commission week, your Left Sales Team s accumulated volume is 2000 BV, and your Right Sales Team s accumulated volume is 1900 BV BV from your Left sales side is payable as BV because there is the equivalent amount available on your Right sales side. A binary bonus will be paid using 1800 BV from your Left side and 1800 BV from your Right side. In this scenario you would earn $240 (6 cycles x $40 = $240US) as a Platinum, $180 as a Gold (6 cycles x $30 = $180US) and $120 as a Silver (6 cycles x $20 = $120US). After commissions have been paid, your Left Sales Team carryover volume would total 200 BV (2000 BV 1800 BV = 200 BV)., and your Right Sales Team carryover volume would total 100 BV (1900 BV 1800 BV = 100 BV). This carryover volume will be available for future commission calculations as long as you remain active. ** A BDC s (binary) income is allowed to reach a maximum of US $25,000 in overrides per week. 4. MATCHING TEAM LEADERSHIP BONUSES Matching bonus is based on the generational organization that you have built. You can earn bonuses based on the binary commissions earned by the people you personally enroll, by the people they personally enroll, and the people they personally enroll. This can continue on up to a total of 5 generations (levels)!! There is no limit to how many reps you can have on your levels. One of the strongest components to the LifeFX Rewards plan is the NO team requirement and NO group volume requirement to collect on up to 5 levels of matching bonus with extremely aggressive percentages! This has NEVER been done in Network Marketing. LifeFX is proud to offer a Compensation First for our distributors. Only Platinum ranks are qualified. You must also be active and fully qualified to be eligible to receive any level of Leadership Match bonus. In order to receive the Leadership Matching Bonuses, you must be a qualified Platinum and a minimum of only 100PV each activation period (monthly). The Leadership Matching bonus calculation is determined by the previous week s binary bonus income.

7 Platinum Match Must Be Platinum Rank & 100PV / Monthly Level 1 = 25% Level 2 = 15% Level 3 = 5% Level 4 = 5% Level 5 = 5% All commissions are paid in US Dollars. To ensure the strength and stability of the LifeFX s Compensation Plan, all commissions are paid within the guidelines of our 60% cap rule. 60% Cap Rule We pay out to the field, in the form of commissions, up to 60% of commissionable revenues we receive on product purchases over the lifetime of our program. If the commissions in any week do not exceed 60% of commissionable revenues, the excess monies are retained for later payment in future weeks should the 60% cap threshold be exceeded. If commissions were to exceed the 60% Cap, commissions would be distributed in the following way. First, any previously retained monies would then be applied to available commission funds, and if the excess were fully offset, commissions would be paid in full according to the standard commission system. If after any previous monies were included, the commissions were to still exceed the cap threshold, then that remaining excess amount would be divided into the 60% Cap amount to determine a percentage factor for adjustment. Once that adjustment percentage is determined, that is the percentage of dilution that would be applied uniformly to all commission levels to determine actual commission payments by rank in that commission week. The plan may be changed by the company, if required, without notice.

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