TEAM COMPENSATION PLAN - Isagenix Leadership Support

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TEAM COMPENSATION PLANIf you’re new to Isagenix, welcome! Isagenix International is a global leader in the health andwellness industry.Our success is based on providing no-compromise products and solutions to consumers worldwide. We alsorecognize that most people looking to change their habits benefit from having a support structure to reinforce anew positive behavior and lifestyle. Therefore, we developed a way to reward Associates who share our products.The Isagenix Compensation Plan was established on sound financial principles, and built to last. Since 2002, Isagenixhas helped hundreds of thousands earn extra money – thousands of whom have been paid over 100,000,000 and hundreds more whom have been paid more than 1 Billion since getting started.Please keep in mind that your individual results and success will ultimately be determined by many factors,including your personal effort, time commitment, social and sales skills, and your sphere of influence. Isagenixcannot guarantee any level of earnings. Even Associates who dedicate a significant amount of time, effort, andpersonal funds may not achieve a meaningful level of success.This document is intended to provide you with an overview and details on our business and the TeamCompensation Plan. The plan is broken into key sections: How to earn an income with IsagenixRank advancement opportunitiesImportant plan featuresGlossary of termsWhether your goal with Isagenix is weight management, improving your health, living a healthier life, orearning some extra income, we recommend everyone at Isagenix get started on the products. Any individualcan choose to open a Customer or Associate account and enjoy discounts of up to 25% off retail prices. Seebelow for ways to get started using the products:MEMBER TYPEELIGIBLE FOR AUTOSHIPBUSINESS TOOLKIT FEEPRICINGAssociateYes 30,00025% off retailCustomerYesN/A10% off retailRetail CustomerNoN/ARetailHOW TO EARN AN INCOME WITH ISAGENIXnnOverviewThe Isagenix Team Compensation Plan encourages people to work together to accomplish their financial goals.Upon enrollment, Members are assigned a unique place in their Enrolling Sponsor’s marketing organization,which is composed of two sales teams or “legs,” one on the right side (“Right Sales Team”) and one on the leftside (“Left Sales Team”). An Associate’s compensation is derived from product purchases by those in his orher marketing organization. As an Associate’s marketing organization grows, more product sales are made,and as more product sales are made, the earnings opportunity increases. 1All values shown in are converted at a rate of US 1: 1000Republic of Korea

nnWays To EarnIsagenix offers Associates several ways to earn money: Retail ProfitsRetail Direct ProfitProduct Introduction Bonus (Available till Dec 31st 2019)You Share They Share Bonus, Share Matching BonusTeam Bonus (Cycles)Rank Advancement BonusesMatching Team BonusGetting StartednnAssociate – Step 1Any person who wishes to participate in the Compensation Plan can apply to become an Isagenix IndependentAssociate by completing the Associate enrollment form and purchasing their Business Toolkit.Associates receive a personal website where their own Retail Direct Customers can purchase products.Associates are eligible to earn RETAIL PROFITS, RETAIL DIRECT PROFITS and PRODUCT INTRODUCTIONBONUSES.RETAIL PROFITS – Associates can order products directly from Isagenix at discounted prices and resell the productsin person to their Retail Customers. The difference between the Associate’s cost of goods sold and the selling price isreferred to as the Associate’s retail profits. Note that business volume from any products you order for retail sales istreated as personal volume.RETAIL DIRECT PROFITS – Associates can also refer or direct Retail Direct Customers to order products directly fromIsagenix through the Associate’s personal website and earn retail direct profits. Retail direct profits are paid weekly andare calculated by subtracting the wholesale price, and an administration fee. The business volume from any retail directsales is treated as personal volume.PRODUCT INTRODUCTION BONUS (PIB) -Associates can earn a bonus by sharing qualified paks or systems with a newassociate on their initial order, these bonuses vary depending on the product pack or system purchased.nnActive Status – Step 2Your active status is assigned each day based on meeting thequalification requirements in the immediately preceding 30 day-period.To receive compensation other than your retail profits or PIBs mustremain active. A member is considered an Active Associate on any givenday if they:TIP #1Step 1 and Step 2 can be completedsimultaneously by purchasing theBusiness Toolkit and placing a 100 BVor more order at the same time.OPTION 1OPTION 2Personally purchase and/or have retail directsales totaling at least 100 Personal Volume (PV)in the last 30 days.Have personally enrolled sales totaling aminimum of 100 Business Volume (BV) inthe last 30 days in each team (right and left).PV the sum of your personally enrolled BVmust be greater than or equal to 200 BVORYOUPersonal purchases/retaildirect sales totaling 100 PV/BVin prior 30 days.YOULEFT TEAMRIGHT TEAMPersonally Enrolled Sales of100 BV in prior 30 days.Personally Enrolled Sales of100 BV in prior 30 days.Qualified Active Associates are eligible to accumulate GROUP VOLUME, however, no Team Bonus (Cycles) willgenerate until an Associate qualifies for Paid-As Consultant status or higher (Step 3).BUSINESS VOLUME (BV) – Point value assigned to each commissionable product.GROUP VOLUME (GV) – The total BV that accumulates in an Associate’s Left or Right Sales Teams.2Republic of Korea

PERSONAL VOLUME (PV) – The combined business volume of (1) an Associate’s personal orders purchased directly fromIsagenix (whether personally consumed or resold to Retail Customers) and (2) orders purchased by the Associate’s RetailDirect Customers (ordering through the Associate’s personal website).PERSONALLY ENROLLED – An Associate or Customer whom another Associate has enrolled.nnConsultant – Step 3When you’re actively sharing products on both of your sales teams, you can move to Step 3, Consultant. As aConsultant you are eligible to earn Team Bonuses (Cycles). As illustrated below, there are two ways to becomea Consultant.OPTION 1OPTION 2Accumulate 100 PV and maintain a minimum of 100 BVfrom personally enrolled Members on each of your Leftand Right Sales Teams within the prior 30 days.Cumulatively achieve 300 BV from any number ofpersonally enrolled Associates plus your PV in the last30 days, with a minimum of 100 BV in cumulative saleson each of your sales teams.TOTAL ORDERS INPRIOR 30 DAYSTOTAL ORDERS INPRIOR 30 DAYSORPersonal Volume (PV)100 PVPersonal Volume (PV)LEFT TEAMRIGHT TEAMLEFT TEAMRIGHT TEAMPersonally Enrolled100 BVPersonally Enrolled100 BVPersonally Enrolled100 BVPersonally Enrolled200 BVTOTAL 300 BVTOTAL 300 BVnnYou Share They Share, Share Matching Bonus – Step 4When you join Isagenix by purchasing a Builder Pack, you have the opportunity to earn two additional bonuses!YOU SHARE - Simply help two new personally enrolled associates join your team with a Builder Pack (one on the right,one on the left) within your first 30 days, and you will earn 150! The best part is, there is no limit to the number oftimes you can earn this bonus during your first 30 days by sponsoring two new members with a Builder pack on your leftand right team! When YOU receive your 150 You Share Bonus, your active enrolling sponsor will earn 100 if they alsostarted with a Builder Pack.THEY SHARE - Teach your personally enrolled team members to duplicate and achieve their own 150 You Share Bonus.Every time your personally enrolled member receives a You Share bonus, you will be rewarded with a 100 They Sharebonus!Share Matching Bonus 100Tip #2“You Share They Share” isn’tjust a way to earn bonuses, it’sthe foundation of the Isagenixbusiness. When YOU use theproducts and experience positiveresults, sharing your story to trainand motivate others is a fantasticway to grow your businessEnrolling SponsorLEFT TEAMYOURIGHT TEAMPersonally-Enrolled with aBBP (600 BV)You join with a BBP (600 BV)Personally-Enrolled with aBBP (600 BV)They Share3You ShareThey Share Bonus 150They ShareRepublic of Korea

nnTeam Bonus (Cycles) – Step 5Team Bonuses are the foundation of the Compensation Plan. Paid-As Consultants and above are eligible toearn Team Bonuses through product sales in their sales team. When a Paid-As Consultant accumulates atleast 900 BV in Group Volume (GV), with at least 600 BV on one side (Major Volume Sales Team) and 300 BV onthe other side (Minor Volume Sales Team), the Associate earns a Team Bonus, also referred to as a Cycle, whichequates to about US 54. An Associate can earn multiple Cycles every day and up to 250 Cycles per week.What does a Team Bonus (Cycle) look like?Visualize your organization with a bank account below each of your Left and Right Sales Teams. As salesoccur anywhere in your TEAM PLACEMENT TREE, whether you personally enrolled those people or not,BV accumulates in each of these bank accounts. Every time you, as a Paid-As Consultant, accumulate at least600 BV on one side and 300 BV on the other side, you earn one Cycle.LEFT TEAMYOURIGHT TEAM 600 GV300 GV 1 Cycle (US 54)BANKBANKTEAM PLACEMENT TREE – An Associate’s marketing organization (Right and Left Teams) in which newly enrolledCustomers and Associates are placed, regardless of their enrolling sponsor.Holdover VolumeAs an example of how this works, let’s say you’ve accumulated 1,000 BV on your Left Sales Team and 250 BVon your Right Sales Team. A new order of 100 BV is placed in your Right Sales Team, so now you have 350 BVon the right. Because you accumulated at least 600 BV on your left, and at least 300 BV on your right, a Cycleoccurs. Once this happens, the 600 BV and 300 BV are deducted, leaving you with a HOLDOVER VOLUME of400 BV on the left and 50 BV on the right:LEFT TEAMYOU300 BVRIGHT TEAM100 BVTIP #3100 BV300 BV150 BV200 BV100 BVTOTAL: 1000 BV- 600 BV (Cycle)400 Holdover Volume100 BV900 BV1 CycleTOTAL: 350 BV- 300 BV (Cycle)The real power of theCompensation Plan comesfrom building a team ofAssociates selling Isagenixproducts. Your goal shouldbe to identify, train, andsupport others in sharingthe products with as manyAssociates as possible.50 Holdover VolumeThis Holdover volume will continue to accumulate as long as you remain Active or until you experience aMegacycle (see Glossary for details). Cycles are calculated daily and paid weekly, and since you accumulatesales on your entire marketing organization no matter how deep it may grow, you can earn multiple Cycles aday, up to 250 times per commission week.4Republic of Korea

nnRank Advancement Bonuses – Step 6There are ten DAILY ACTIVE RANKS Associates can achieve:1. Associate2. Consultant3. Manager4. Crystal Manager5. Director6. Crystal Director7. Executive8. Crystal Executive9. Platinum10. Crystal PlatinumDAILY ACTIVE RANK – Used primarily for promotions and contests, an Associate’s daily active rank is based on theirstatus and meeting the requirements on each day.To qualify for the rank of Manager or higher, the Associate must be a qualified consultant and satisfy thefollowing criteria:1.Accumulate 600 PERSONAL VOLUME (PV) in the prior 180 days.Tip #42.A GROUP VOLUME criteria in each sales team (Left and Right) withinGet started on a Business Builder Packto immediately satisfy the first criteriafor achieving a Rank Advancement Bonus.the prior 30 days.Associates may earn Rank Advancement Bonuses for achieving certain ranks.1TO REACHTHIS RANK 2 GROUP VOLUME (GV)PERSONALVOLUMELEFTTEAMRIGHTTEAMBONUSCrystal Platinum1,000,0001,000,000 300,000*Platinum500,000500,000 100,000*Crystal Executive200,000200,000 40,000*50,00050,000 10,00010,00010,000 2,000Director2,4002,400 500Crystal Manager1,2001,200 150Manager600600–ExecutiveCrystal Director600 PV*Ranks over 40,000 will be subject to the Rank Advancement Installment Plan. Refer to glossary.nnMatching Team Bonus – Step 7Daily Active Rank of Crystal Managers and above are eligible to receive a 10-20 percent Matching Team Bonuson the daily Team Bonus of up to their first five GENERATIONS based on the ENROLLMENT TREE.ENROLLMENT TREE – Is based on the Members generated by the downline of your Personally Enrolled Team (PET).For example: you enroll a new Associate (1PET), who enrolls a new Associate (2PET), who enrolls a new Associate (3PET),who enrolls a new Associate (4PET) and so on.PETLEFT TEAMYOURIGHT TEAM1PET2PET3PET4PETGENERATION – An Associate who has a Daily Active Rank of Manager or above in your personally Enrolled Team withone or more Team Bonus (Cycles).The system will begin by looking at your 1PET. If you have any Managers or above, the system will then checkto see if they have cycled. If they have, they become your 1st generation. If these criteria aren’t met in your1PET, the system will repeat the same process with the 2PET. This will continue until up to 5 generations havebeen determined. Below is an example of the Enrollment Tree being transferred into generations:5Republic of Korea

System Checks1PET2PET3PET1GEN2GEN3GEN4GEN4PETNot a Manager or above with 1 Cycle or moreHow is the Matching Team Bonus calculated?The Matching Team Bonus is calculated daily and paid weekly. Qualified Daily Active Rank of Crystal Managerand above, who have earned at least 1 cycle, may earn a maximum of US 13,500 in Matching Team BonusesQUALIFYINGMEMBERper commission RECTOREXECUTIVECRYSTALEXECUTIVES &ABOVE1 WITHIN A CURRENT COMMISSION EN5GEN20%20%10%IMPORTANT PLAN FEATURESnnInternational SponsorshipAssociates in good standing may participate in markets outside their home region where Isagenix is legallyregistered to operate and is officially open for business. To apply, Associates simply complete the onlineInternational Sponsorship Registration and Agreement. As an International Sponsor you become eligible toearn commissions on sales made in international regions. Those approved Active International sponsors canearn on group volume generated by Members on their sales teams who live outside of their home region. Allcommissions are subject to the FOREIGN EXCHANGE POLICY.FOREIGN EXCHANGE POLICY – Isagenix develops a Commissions Multiplier based on the source of volume from eachcountry where the Associate is conducting business. The new Commissions Multiplier will be a weighted average that isunique to the amount of volume coming from each country and will be used as the multiplier for their commissions. Thenew Commissions Multiplier will be calculated and updated each quarter and will apply to any Associate with at least 10percent or more of their volume originating from outside of their home country.nnAutoship ProgramThis is an optional program of convenience permitting pre-selected, pre-authorized orders to be automaticallyshipped on a selected date each month. The Autoship program provides additional savings and convenience toMembers who elect to participate.nnMegacycleA Megacycle occurs at the end of any day that a minimum of 100 Cycles have accumulated since the Associate’senrollment date or last Megacycle. To provide stability to the Compensation Plan, Isagenix will hold over upto 150,000 GV in the Major Volume Sales Team and all remaining GV in your Minor Volume Sales Team towardearning your next Team Bonus. Any GV above the 150,000 GV from your Major Volume Sales Team is removed.nnWeekly PayWeekly pay is a noteworthy feature of the Isagenix Team Compensation Plan. A commission week begins at12 a.m. EST Mondays and runs through 11:59 p.m. EST of the following Sunday. The earned compensation is paidto Associates effectively two weeks in arrears.6Republic of Korea

nnNon-Active AssociatesAssociates who are not active will not accumulate any GV and will have any Holdover volume reset to zero.nnConsultant MaintenanceIf you are active but fail to stay qualified as a Paid-As Consultant, you will hold existing GV, and continue toaccumulate additional GV.nnCap RuleWhere a payment is expected to temporarily or accidentally exceedthe legal payment threshold for annual sponsoring bonus, the companymay adjust the total amount of payment of sponsoring bonus for thepurpose of compliance with the relevant laws and regulations. Theconditions are as follows:1.WEEKLYCOMMISSIONYEARLYRATIOCAPAPPLIES 35% 35%YES 35% 35%YES 35% 35%NOIf weekly commission (excluding promotion bonuses) is over 35% and the yearly ratio is over 35%.A cap will be applied to all Associates eligible for commission. Where appropriate, an exception will bemade for those with their commission equal to or less than 1 Cycle.2.If weekly commission (excluding promotion bonuses) is under 35% and the yearly ratio is over 35%.A cap will be applied to all Associates eligible for commission. Where appropriate, an exception will bemade for those with their commission equal to or less than 1 Cycle.3.If weekly commission (excluding promotion bonuses) is over 35% and the yearly ratio is under 35% thenno cap will be applied.nnClawbackIn the event that the day closes with negative 300 total volume on either leg (Left or Right) a Clawback will betriggered. Each clawback equals -US 18 as depicted below:RIGHT TEAMLEFT TEAMYOU600 BV200 BV300 BV-200 BV-600 BV100 BV100 BV100 BVTOTAL: 1000 BVTOTAL: -400 BV- (-300 BV 1 Clawback)-100 Holdover VolumeIf an Associate falls out of Active status, negative volume will not be flushed. In the case of an Associateresigning or being terminated, their volume will be calculated for 90 days following the resignation ortermination. Any returns of items purchased after the resignation date will not be included in this calculation.Any sales of items after the resignation date will not be included in this calculation. The sum of the prior90 days’ team bonuses must be greater than or equal to the sum of the clawback.If money is owed after 90 days, the Associate will pay Isagenix within 30 days of notification per the policiesand procedures.nnRe-Entry PositionA Executive whose sales team has produced at least 225 Cycles for three commission weeks and who hasmaintained Executive Status in the prior three months may apply for a re-entry position. The re-entry positionwould be located immediately above the existing position (Primary Position). If the re-entry position isapproved, the Primary Position becomes one side of the Executive’s Sales Team (i.e., Major Volume SalesTeam). This means an Executive can leverage the volume from the Primary Position as one leg of the newre-entry position.7Republic of Korea

GLOSSARY OF TERMSACTIVE – For purposes of the Compensation Plan, anAssociate is considered active on a specific day if he/shehas obtained at least 100 PV in the prior 30 days, or haspersonally enrolled sales totaling a minimum of 100 BV inthe prior 30 days in each team (left and right).CYCLE – When an active Consultant or above accumulates900 GV, with at least 300 GV coming from the Minor VolumeSales Team and 600 GV from the Major Volume Sales Team,the Associate earns a Cycle (Team Bonus). An Associate canearn multiple Cycles on any given day, up to 250.ASSOCIATE – An independent contractor who has met andcontinues to meet the eligibility requirements set forth in theIsagenix Independent Associate Application and Agreementincluding the Policies and Procedures and the CompensationPlan. Associate is also the first rank of the CompensationPlan. The term “Associate(s)” by itself generally refers to allAssociates regardless of rank, unless the context indicatesthat the rank of Associate is the intended meaning.DAILY ACTIVE RANK – An Associate’s daily active rank isbased on their status and meeting the requirements on eachday.AUTOSHIP – An optional program of convenienc

The Isagenix Compensation Plan was established on sound financial principles, and built to last. Since 2002, Isagenix . This document is intended to provide you with an overview and details on our business and the Team Compensation Plan. The plan is broken into key section