AmeriPlan USA Pin Level Program & Compensation Plan

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1 AmeriPlan USA Pin Level Program & Compensation Plan DEFINITIONS Active - Any person or legal entity that holds a member, Broker Benefits or Sales Director agreement and is current on their fee payment. Advance - The commission paid upon activation of new business received, for example, Broker Benefits or member applications. New Brokers default as as-earned but may elect to receive advances. Advance checks are issued daily. As-Earned (member) - No Advance commission is paid. Brokers receive 30% residual commissions on Active DVPC members each month and 20% residual commission on Active AmeriPlan Health members each month. As-Earned (Broker) - All Broker Benefits Advances (60%/$21) are paid monthly for 5 or 12 months. Thereafter, Brokers are paid 30% residual commissions on Active Brokers each month. Broker types: Basic Broker ($95) A Broker who does not elect the APP PAK. APP (AmeriPlan Power Partner) Broker ($295) includes Basic Broker Plus App Pak (a $600 value for $200) Downline - A Broker s personally enrolled Brokers, their personally enrolled Brokers, their personally enrolled Brokers and so on to infinity. Enrolling Broker - A Broker who personally signs up a member or Broker into the Benefits program. First Level - Personally enrolled Brokers and personally enrolled members. Management Levels - The six Sales Director Pin Level positions RSD, SRSD, ESD, SESD, NSD and NVP. Overrides - Commissions paid to upline Sales Directors; a specified percentage of Sales Group Monthly Revenue (SGMR). Paid-As - Required status maintained by Sales Directors to receive Overrides. Sales Group Monthly Revenue (SGMR) - Total monthly Broker and member Benefits fees paid by individuals in a sales group. Upline - A Broker s enrolling Broker, their enrolling Broker, their enrolling Broker and so on to infinity. c 2005 AmeriPlan Corporation

2 TM AmeriPlan USA Pin Level Program HOW TO BE PROMOTED A special lapel pin designates each level of achievement as Brokers progress through the Pin Level Program. In order to be promoted to a new Pin Level, a Broker must be active. Additionally, all downline Brokers and members required to promote to a Pin Level must be active. Once a Pin Level is achieved, the Broker is always recognized at that level. RSD=Regional Sales Director Personally sign up 4 new active, First Level Brokers and 6 new active, First Level members to achieve Regional Sales Director. RSDs receive the RSD Pin along with a Sales Director Contract that is 100% vested, willable and sellable. SRSD=Senior Regional Sales Director An RSD who develops 3 First Level, Paid-As RSDs promotes to SRSD and receives the SRSD Pin. A Paid-As RSD is personally active and has 4 active, First Level Brokers and 6 active, First Level members. ESD=Executive Sales Director An SRSD who develops 1 First Level, Paid-As SRSD promotes to ESD and receives the ESD Pin. A Paid-As SRSD is personally active and has 3 First Level, Paid-As RSDs OR $1,000 in Personal Sales Group Monthly Revenue. * SESD=Senior Executive Sales Director An ESD who develops 2 First Level, Paid-As SRSDs promotes to SESD and receives the SESD Pin. NSD=National Sales Director An SESD who develops 3 First Level, Paid-As SRSDs promotes to NSD and receives the NSD Pin. NVP=National Vice President An NSD who develops their downline organization to include: Four (4) First Level NSDs; and Three (3) Second Level NSDs; and Two (2) Third Level NSDs; and One (1) Fourth Level NSD; and $15,000 in Personal Sales Group Monthly Revenue. * An SRSD s, ESD s, SESD s and NSD s Personal Sales Group Monthly Revenue may be used to MAINTAIN their Paid-As status, but not to promote themselves to a new Pin Level. * Rollups and upgrades do not count for any pin level promotion.

3 AmeriPlan USA Compensation Plan TM ADVANCES Members Brokers receive a 30% level residual commission for signing up new DVPC members. Brokers may elect 6 or 12-month Advances depending on whether the new member pays monthly or quarterly/annually. Brokers receive 20% level residual commission for signing up new AmeriPlan Health members. Brokers may elect to receive $100 advance commissions on household memberships or $75 advance commissions for individual memberships. Brokers Benefits Brokers can earn Advances according to the enrollment level of their personally enrolled Brokers. Brokers may elect to receive Advances for personally enrolling new Brokers as follows: Basic Broker ($95) $100 Advance Basic Broker with APP PAK ($295) $250 Advance All Advances are paid off at $21 monthly (60%) until the total Advance amount is paid back. Thereafter, Brokers are paid residual commission of $10.50 monthly (30%). New Brokers are paid As-Earned (i.e., not to receive 100% of Advances up front) and receive a $21 Advance commission (60%) each month until the Advance amounts ($100 or $250) they elected not to receive are paid by the company. Thereafter, Brokers are paid residual commission of $10.50 monthly (30%).

4 OVERRIDES Overrides are paid to qualified SRSDs, ESDs, SESDs, NSDs and NVPs according to three criteria: Promotion to the appropriate Pin Level; and Meeting applicable Paid-As requirements; and Submission of at least one active Broker or one active member on their First Level each calendar month; or 24 new active pieces of business within any calendar year. Override percentages are as follows: SRSD=Senior Regional Sales Director 15% Override on First Level Sales Group Monthly Revenue (SGMR) ESD=Executive Sales Director 15% First Level PLUS 10% Override on Second Level SGMR SESD=Senior Executive Sales Director 10% Second Level PLUS 5% Override on Third Level SGMR NSD=National Sales Director 10% Second Level, 5% Third Level PLUS 3% Override on Fourth Level SGMR NVP=National Vice President 10% Second Level, 5% Third Level, 3% Fourth Level PLUS 1% Override on Fifth Level SGMR to the 3rd generation of NVPs Paid-As requirements must be met in order to receive Overrides: RSD Four (4) active, First Level Brokers and six (6) active, First Level members SRSD Three (3) First Level, Paid-As RSDs OR $1,000 in Personal Sales Group Monthly Revenue (SGMR) ESD One (1) First Level, Paid-As SRSD OR $2,000 in Personal SGMR SESD Two (2) First Level, Paid-As SRSDs OR $3,000 in Personal SGMR NSD Three (3) First Level, Paid-As SRSDs OR $4,000 in Personal SGMR NVP Same as NVP Pin Level promotion requirements Important Note on Charge Backs: If a Broker cancels prior to the time an Advance is fully paid off, the remaining balance due is charged back to the earning Broker(s) in equal parts over a six-month period. Broker charge backs are divided into two types: Current (Trust Account) and Pending Adjustments. Current charge backs are due for repayment in the current month. Pending Adjustment charge backs are owed to the company in future months, but are not yet current. Brokers electing Advances receive them in full (less any Current Trust balance) unless the amount of charge backs in a Broker s Pending Adjustments account is greater than $1,000. In that event, Broker Advances are split, with 50% applied to reduce the Pending Adjustments account balance, and 50% paid to the earning Broker (less any Current Trust balance). Any time the Pending Adjustments charge back account balance is less than $1,000, the Advances are paid in full to the Broker (less any Current Trust balance). Note: Residual commissions and Builders Bonus are always applied to a Broker s Current Trust balance, regardless of the amount owed.

5 Examples: CHARGE BACKS Broker A enrolls Broker $295 and elects to receive the $250 Broker Benefits Advance. Scenario 1. Broker A has a zero balance in both the Pending Adjustments charge back account and the Current Trust account. Broker A receives the full Advance - $250. Scenario 2. Broker A has a Pending Adjustments charge back account balance of $1400 at the time Broker B is activated. Broker A s Current Trust account balance is zero. Of the $250 Advance, $125 (50%) is used to reduce the Pending Adjustments charge back account balance as follows: $ $125 = $1275. The Broker receives the remainder of the Advance $125 (50%). Scenario 3. Broker A s Pending Adjustment charge back account has a balance of $1100 at the time Broker B is activated. Broker A s Current Trust account has a balance of $40. Of the $250 Advance, $125 (50%) is used to reduce the Pending Adjustment charge back account balance as follows: $ $125 = $975. The remaining portion of the Advance of $125 (50%) is used to reduce the Current Trust account balance as follows: $125 - $40 (Current Trust account balance) = $85. Broker A receives the remainder of the Advance $85. Scenario 4. Broker A s Pending Adjustment charge back account has a balance of $200 at the time Broker B is activated. Broker A s Current Trust account balance is $60. Of the $250 Advance, $60 is used to reduce the Current Trust account balance to zero. Broker A receives the remainder of the Advance as follows: $250 - $60 = $190.

6 AmeriPlan USA Pin Level & Compensation Plan Recap Broker Benefits Advances TM New Broker Advance Earner Basic Broker ($95) $100 APP Broker ($295) $250 Pin Levels, Paid-As Requirements and Overrides Pin Levels (How to Promote) RSD: 4 Active, First Level Brokers & 6 Active, First Level members Paid-As Requirements 4 Active, First Level Brokers & 6 Active, First Level members Overrides N.A. SRSD: 3 First Level, Paid-As RSDs 3 First Level, Paid-As RSDs OR $1,000 in Personal Sales Group Monthly Revenue (SGMR) 15% First Level Sales Group Monthly Revenue (SGMR) ESD: 1 First Level, Paid-As SRSD 1 First Level, Paid-As SRSD OR $2,000 in Personal SGMR 10% Second Level SGMR SESD: 2 First Level, Paid-As SRSDs 2 First Level, Paid-As SRSDs OR $3,000 in Personal SGMR 10% Second Level, 5% Third Level SGMR NSD: 3 First Level, Paid-As SRSDs 3 First Level, Paid-As SRSDs OR $4,000 in Personal SGMR 10% Second Level, 5% Third Level, 3% Fourth Level SGMR NVP: 4 First Level NSDs, 3 Second Level NSDs, 2 Third Level NSDs, 1 Fourth Level NSD $15,000 in Personal SGMR Same as previous column 10% Second Level, 5% Third Level, 3% Fourth Level, 1% Fifth Level SGMR to the 3rd generation of NVPs * Rollups and upgrades do not count for any pin level promotion. APPLP04-05

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