XanGo™ Compensation Plan

1. Retail Sales

2. Weekly PowerStart Bonus

3. Monthly Unilevel

4. Quarterly Global Pool

The XanGo™ Compensation Plan is Illustrated below.

Retail Sales

An Independent XanGo Distributor, may sell the product purchased at wholesale at a higher retail price, thereby generating profit. A Distributor may also direct the Distributor's customers to purchase directly from XanGo's retail order line and XanGo will pay to the Distributor the retail profit for each sale.

Selling XanGo at retail cost is optional. Retail sales do not affect your commission. Many Distributors simply consume the product they purchase from the company.  Others split the cost of their order with family members or friends who are interested in trying the product.

It is, therefore, possible to be a XanGo distributor without ever having to sell a bottle of XanGo.

Weekly PowerStart Bonus

The weekly PowerStart Bonus is a Fast Start commission that is paid on a weekly basis. It is paid upon the first wholesale sales order with volume, sold within thirty (30) days of the application date of a personally sponsored Distributor.  PowerStart is paid on up to five (5) cases only - any additional cases will not be included in PowerStart commission calculations. It is paid based on the Sponsorship line. All subsequent orders are paid out as Unilevel volume.  Product Volume requirements must have been met within the last six weeks of the time of the order.  The Company pays 50% of the commissionable volume of the initial order in two ways, depending upon the ADP status of the sponsor.

1.  Sponsor does have a current/active ADP (ADP of 100PV or greater):

• 30% of Commissionable Volume is paid directly to the sponsor.

• 15% of Commissionable Volume is paid to the first qualified upline Distributor on "Double-Depth" ADP (ADP of 200PV or grater)

• 5% of Commissionable Volume is currently going to the Global Bonus pool. The Company guarantees that 3% will go to the Global Bonus Pool and is currently putting the additional 2% into the Global Bonus Poll, but reserves the right to use the 2% for different incentives as it sees fit in the future.

2. Sponsor does not have a current /active ADP (ADP of 100PV or greater):

• 20% of Commissionable Volume is paid directly to the sponsor.

• 25% of Commissionable Volume is paid to the first qualified upline Distributor on "Double-Depth" ADP (ADP of 200PV or greater)

• 5% of Commissionable Volume is currently going to the Global Bonus pool. The Company guarantees that 3% will go to the Global Bonus Pool and is currently putting the additional 2% into the Global Bonus Poll, but reserves the right to use the 2% for different incentives as it sees fit in the future." Section 37-a

PowerStart Commission is like motivation and an incentive to get started right a way. When first get started as a new distributor, you need as much help as you can get and the PowerStart bonus provides a large commission on individuals that you personally sponsor.

PowerStart "Basic"  To qualify for this level of commission you must have a Personal Volume (PV) of 100. Or in other words, you must have received one case of XanGo in the past six weeks. At this level of commission you are paid 20% of the initial order of anyone you personally sponsor, or $20 per case.

PowerStart "Plus"  To qualify for this level of commission you must have a Personal Volume (PV) of 100 and an another 100PV on ADP (Automatic Delivery Program). Or in other words, you must have received one case of XanGo in the past six weeks and be currently signed up to receive one case a month through the Automatic Delivery Program. At this level of commission you are paid 30% of the initial order of anyone you personally sponsor, or $30 per case.

PowerStart "Double-Depth"  To qualify for this level of commission you must have a Personal Volume (PV) of 200 and an another 200PV on ADP (Automatic Delivery Program). Or in other words, you must have received two cases of XanGo in the past six weeks and be currently signed up to receive two cases a month through the Automatic Delivery Program. At this level of commission you are paid 30% of the initial order of anyone you personally sponsor, or $30 per case. Additionally, you will be paid 15% of any initial order placed by individuals that are sponsored by those on your first level. You will also receive Double-Depth commission on any initial order if you are the first eligible upline Distributor. If the the individual who is sponsoring the new Distributor isn't signed up for ADP, the commission to the first eligible upline Distributor will be 25%.

Monthly Unilevel

The Unilevel compensation is paid on a monthly basis and includes Streamlined Compression.  Streamlined Compression, a method under the commissions plan wherein payment of commissions is pushed up to the next qualifying Distributor level so as to avoid breakage.  This means that if a Distributor doesn't currently qualify to receive a percentage of his or her commissions, the commission is paid out to the first qualifying distributor.

Unilevel commissions are not paid on PowerStart sales.  There are six levels of Unilevel commissions:

• Representative: A Distributor who has monthly 100PV. A Representative is paid commissions on two volume levels.

• Preferred Representative: A Distributor who has monthly auto order (ADP) of 100PV. A Preferred Representative is paid commissions on three volume levels.

• 1K: A Distributor who has monthly auto order (ADP) of  100PV; has sponsored a minimum of three (3) Distributors on auto order (ADP); and has 1,000 Group PV. A 1K is paid commissions on four volume levels.

• 5K: A Distributor who has a monthly auto order (ADP) of 100PV; has sponsored a minimum of three (3) 1K Distributors; and has 5,000 Group PV. A 5K is paid commissions on five volume levels.

• 20K A Distributor who has a monthly auto order (ADP) of 200PV; has sponsored a minimum of three (3) 5K Distributors; and has 20,000 Group PV. A 20K is paid commissions on seven volume levels.

• Premier: A Distributor who has a monthly auto order (ADP) of 200PV; has sponsored a minimum of three (2) 20K Distributors and one (1) 5K Distributor; and has 50,000 Group PV. A 20K is paid commissions on nine volume levels." Section 38 a-g

 The Unilevel Commission paid per qualified level to qualifying Distributors is as follows:

• First Level:         5%

• Second Level:      5%

• Third Level:         10%

• Fourth Level:        5%

• Fifth Level:           5%

• Sixth Level:          5%

• Seventh Level:     5%

• Eighth Level:       5%

• Ninth Level:          2%

The percentages in Unilevel Commission are smaller than those in Weekly PowerStart Commission, but they amount to more in the long run. First of all, as your organization grows, the Unilevel Commissions have a potential to grow exponentially. Secondly, Unilevel Commissions are paid out every month, not just on the initial orders of new Distributors.

It seems a bit complex at first. But remember, as your organization grows, you will easily qualify for the different Levels of Commission.

Quarterly Global Pool

Three percent (3%) of all worldwide commissionable volume will be place in the Global Bonus Pool. The Global Bonus Pool will be paid out on a pro-rata basis to qualified leaders (Premier Select). The actual calculation of the amount a pool participant receives is determined by adding up all the GV3 volume of the participating Premiers, the GV6 of the participating 100K Premiers, and the GV9 of the participating 200 premiers. This gives a total pool volume. Then the amount contributed by each participant is divided by this total pool volume, resulting in an individual Distributor percentage. The Distributors percentage is then multiplied by the total dollar amount in the Global Pool, which results in a specific bonus amount.

There are four types of qualified leaders who will be paid commissions from the Global Bonus Pool. (These definitions and standards will be applied for determination of incentive award qualifications.) These qualified leaders are:

1. Premier Select: Must qualify for Premier for each of the three months of the calendar quarter and must have a minimum monthly Unilevel commission payment of $2,500.00 each month in order to qualify for payment from the Global Bonus Pool. Premier Selects will receive a pro rata portion of the Global Bonus Pool based upon the first three volume (GPV) levels.  (Global Bonus Pool portion based on the total compressed volume within their first 3 levels (GV3) generated from the Unilevel commission for each of the 3 months of the quarter.)

2. 100K Premier Select: Must qualify for Premier for each of the three months of the calendar quarter and must have a minimum monthly Unilevel commission payment of $5,000.00 each month; three (3) personally sponsored 20K Distributors; one personally sponsored 5K Distributor and 100,000 Group PV each month in order to qualify for payment from the Global Bonus Pool. 100K Premier Selects will receive a pro rata portion of the Global Bonus Pool based upon the first six volume (GPV) levels.  (Global Bonus Pool portion based on the total compressed volume within their first 6 levels (GV6) generated from the Unilevel commission for each of the 3 months of the quarter.)

3. 200K Premier Select: Must qualify for Premier for each of the three months of the calendar quarter and must have a minimum monthly Unilevel commission payment of $10,000.00 each month; three (3) personally sponsored Premier Distributors; one personally sponsored 20K Distributor and 200,000 Group PV each month in order to qualify for payment from the Global Bonus Pool. 200K Premier Selects will receive a pro rata portion of the Global Bonus Pool based upon the first nine volume (GPV) levels.  (Global Bonus Pool portion based on the total compressed volume within their first 9 levels (GV9) generated from the UniLevel commission for each of the 3 months of the quarter.)

4. 500K Premier Select: Distributors in this category qualify in the same way as 200K Premier Select Distributors.

The Quarterly Global Pool provides a way for successful Distributors to share in the profits of XanGo's entire organization. Meaning that the success of the company benefits the individuals who have made it successful.

Illustration of Compensation Plan