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TEAM COMPENSATION PLAN MILLION DOLLAR BODY’S TEAM COMPENSATION PLAN has been designed to reward Independent Million Dollar Body Coaches for sharing our products, services, and income opportunity with others. The Team Compensation Plan represents an innovation in Business Income Opportunity—paid weekly! TABLE OF CONTENTS EARNING OPPORTUNITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 SIMPLE TERMS TO LEARN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 COACH ACHIEVEMENT RANKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 RANKS, QUALIFICATIONS & BENEFITS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 GLOSSARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 1

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TEAM COMPENSATION PLAN

MILLION DOLLAR BODY’S TEAM COMPENSATION PLAN has been designed to reward Independent Million Dollar Body Coaches for sharing our products, services, and income opportunity with others. The Team Compensation Plan represents an innovation in Business Income Opportunity—paid weekly!

TABLE OF CONTENTS

EARNING OPPORTUNITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

SIMPLE TERMS TO LEARN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

COACH ACHIEVEMENT RANKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

RANKS, QUALIFICATIONS & BENEFITS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

GLOSSARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

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EARNING OPPORTUNITIES

There are eight ways to earn income with Million Dollar Body’s innovative Team Compensation Plan.

RETAIL COMMISSIONS When your customer orders an MDB™ product, you earn a 25% commission. When your Million Dollar BodyClub members order, you receive a 15% commission.

MDB CLUB MEMBERSHIPSFor every Million Dollar Body Club member you enroll, you will continually get paid 50% of their membershipdues (paid quarterly).

SHOWCASE PACK BONUS (SPB)Like you, your personally sponsored Coaches have a great opportunity to build their personal library offitness products at a special introductory price. You can earn a $50 Showcase Pack Bonus (SPB) when apersonally sponsored Coach orders a Showcase Pack within their first 30 days of their enrollment.

SHOWCASE PACK - SPONSORS BONUSES (SPSB)Every time a Showcase Pack is sold by any Coach in the first five levels of your direct line of sponsorship, youearn a $5 Showcase Pack - Sponsors Bonus.

TEAM CYCLE BONUSES (TCB) Every time an active and qualified Coach Business Center generates 360 balanced bonus points it cycles andpays a Team Cycle Bonus.

MATCHING CHECK BONUSES (MCB)Active and qualified Ruby and Diamond Coaches respectively earn a 5-10% Matching Check Bonus on theweekly Team Cycle Bonus checks of their personally sponsored Coaches.

STAR DIAMOND PRODUCTION BONUSES Million Dollar Body sets aside 2% of the total company Bonus Volume (BV) to reward those Coaches whohave reached the Star Diamond rank (paid quarterly) and who have qualified to participate in the StarDiamond Production Bonus pools.

BUILDING NEW COACH BUSINESS CENTERS (CBC)Star Diamond Coaches who meet the requirements can own up to a total of ten (10) Coach Business Centersin their Million Dollar Body Organization.

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SIMPLE TERMS TO LEARN

Bonus Volume (BV)Bonus Volume (BV) is the bonus point value amount the company uses to calculate and paid bonuses.

Personal Volume (PV)Personal Volume (PV) represents the BV points earned from your purchases combined with the purchasesmade by customers through your Web site.

Team Volume (TV)Team Volume (TV) is the BV points accumulated by a Coach Business Center’s downline team of Coaches.

Coach Business Center (CBC)Your Coach Business Center (CBC) is a sales compensation structure provided for all MDB Coaches for thepurpose of tracking their Million Dollar Body business activities.

Active StatusActive status means that you have achieved a minimum of 50 Personal Volume (PV) points within the last 30 days as a Million Dollar Body Coach.

Qualified StatusQualified Status means that you have met the requirements for your rank as an Emerald Coach, Ruby Coach,Diamond Coach, or Star Diamond Coach within the previous 30 days.

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COACH ACHIEVEMENT RANKS

There are a total of eight (8) Coach achievement ranks in the Team Compensation Plan.

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COACHEMERALD COACHRUBY COACHDIAMOND COACHDOUBLE STAR DIAMOND COACHFIVE STAR DIAMOND COACHTEN STAR DIAMOND COACHSUPER STAR DIAMOND COACH

RANKS, QUALIFICATIONS & BENEFITS

I) COACHAs a new MDB Coach, you will be provided with your own Coach Business Center (CBC).

Your Coach Business Center (CBC) is a sales compensation structure provided for all MDB Coaches for thepurpose of tracking their Million Dollar Body business activities.

Qualifications• Enroll online as an Independent MDB Coach for $39.95 and be accepted by the company.

• There are no personal sales requirements necessary for you to earn commissions on your personal retail sales.

Coach Benefits – Earn four (4) different waysRetail Commissions (paid weekly)1. Earn a 25% commission on the retail sales price of most MDB products (paid weekly) and earn a 15%

commission on the product sales to personally enrolled MDB Club Members.

2. Million Dollar Body Club Membership Commissions (paid quarterly)Earn a 50% commission on your personal customer sales and renewals of MDB Club online memberships.

3. Showcase Pack Bonus (SPB) (paid weekly)Earn a $50 Showcase Pack Bonus (SPB) when a personally sponsored Coach orders a Showcase Packwithin the first 30 days of their enrollment as a new Coach.

4. Showcase Pack – Sponsors Bonuses (SPSB) (paid weekly)Every time a Showcase Pack is sold by any Coach in the first five levels of your direct line of sponsorship,you can earn a $5 Showcase Pack - Sponsors Bonus. Note: Active status is a requirement to earn any SPSB.

PERSONALLY SPONSORED

PERSONALLSPONSORED

PERSONALLY SPONSORED

$50 $50

$50

You can earn $50 each time a personally sponsored Coach buys a Showcase Pack.

SHOWCASE PACK BONUS

5

6

$5

$5

$5

$5

$5

A

B

C

D

E

F

Orange Line = Direct Line of Active Sponsorship

SHOWCASE PACK SPONSOR BONUS

You earn $5 each time a Coach in the first 5 levels of your Direct Line of Active Sponsorship sells a Showcase Pack.

RANKS, QUALIFICATIONS AND BENEFITS

In this example, you have personally sponsoredA, A has personally sponsored B, B has

personally sponsored D, D has personallysponsored E, and E has personally sponsored F.

This represents the first 5 levels of your DirectLine of Active Sponsorship

II) EMERALD COACH – EARN FIVE DIFFERENT WAYSBecome an active and qualified Emerald Coach by activating your Coach Business Center and you willqualify for additional earning opportunities.

Qualifications• Be a Million Dollar Body Coach.• Reach and maintain active status – to become and remain an active MDB Coach, you need to have

achieved a minimum of 50 Personal Volume (PV) points within the previous 30 days of the pay periodbeing calculated and paid. (Also, see Glossary: Active Status - Grace Period).

• Activate (and maintain) your Coach Business Center through personally sponsoring and maintaining aminimum of two (2) active Coaches, with one personally sponsored active Coach in your left Coach leg andone (1) personally sponsored active Coach in your right Coach leg.

BenefitsRetail Commissions (paid weekly)1. Earn a 25% commission on the retail sales price of most MDB products (paid weekly) and earn a 15%

commission on the product sales to personally enrolled MDB Club members.

2. Million Dollar Body Club Membership Commissions (paid quarterly)Earn a 50% commission on your personal customer sales and renewals of MDB Club online memberships.

3. Showcase Pack Bonus (SPB) (paid weekly)Earn a $50 Showcase Pack Bonus (SPB) when a personally sponsored Coach orders a Showcase Packwithin the first 30 days of their enrollment as a Coach.

4. Showcase Pack – Sponsors Bonuses (SPSB) (paid weekly)Every time a Showcase Pack is sold by any coach in the first five levels of your direct line of sponsorship,you earn a $5 Showcase Pack - Sponsors Bonus. Note: Active status is a requirement to earn any SPSB.

5. Team Cycle Bonuses As an active and qualified Emerald Coach, your CBC can start accumulating and banking (holding) TeamVolume (TV) from your CBC’s left and right Coach legs (regardless of depth) and become eligible to startearning Team Cycle Bonuses.

As an active and qualified Emerald Coach, you can earn a Team Cycle Bonus of up to $19 each time yourCBC “cycles” by generating 360 TV with a minimum of 1/3 of the TV (120 TV) in one leg and 2/3 of theTV (240 TV) in the other leg. Each time your CBC “cycles with 360 TV” with the proper balance of 1/3 TV

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RANKS, QUALIFICATIONS & BENEFITS

ACTIVATED

– 2/3 TV, the 360 TV will be deducted (120 TV in one Coach leg and 240 TV in the other Coach leg) fromyour total accumulated CBC - TV and the remaining qualified TV will carry over into the next CBC cycle of360 TV (per the MDB Team Compensation Plan).

Team Cycle Bonuses – Active and Qualified Emerald Coach• up to a $15 Team Cycle Bonus for active and qualified Emerald Coaches with 50 PV

• up to a $17 Team Cycle Bonus for active and qualified Emerald Coaches with 75 PV

• up to a $19 Team Cycle Bonus for active and qualified Emerald Coaches with 100 PV (with at least 25PV generated from Web site retail sales and/or online MDB Club memberships)

Allowable Daily Team Cycles for Emerald Coaches Cycles A Emerald Coach can theoretically cycle their CBC and earn Team Cycle Bonuses up to 40 times daily.

CBC Master Cycles and Carry Over Team Volume (TV)When a CBC completes 300 consecutive and payable Team Cycle Bonuses, a Master Cycle occurs and amaximum of 5000 TV in the strong leg and the entire TV in the weak leg will carry over to the next cycle,which may occur on the same day.

Team Cycle Bonus Account Fund and Team Cycle Bonus Cap Each week, 35% of the total company BV is set aside for Team Cycle Bonus payouts. In order to maintain theprofitability required to successfully fund and operate the Million Dollar Body opportunity and to ensurebusiness stability for the Independent Million Dollar Body Coaches, the company has established a cap of35% of the total accumulated company BV to be paid in Team Cycle Bonuses, and may implement a TeamCycle Bonus payout adjustment, if necessary, which will adjust all Team Cycle Bonus payouts equally in orderto maintain the established cap.

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RANKS, QUALIFICATIONS & BENEFITS

TV

TVTV

TV

240 TV (2/3)120 TV (1/3)

360 TV

200 TV-120 TV 80 TV

300 TV-240 TV 60 TV

In this illustration, a total of 500 TV has been generated, with 300 TV in the left Coach legand 200 TV in the right Coach leg.

240 TV (2/3) is subtracted from theleft Coach leg and 120 TV (1/3) issubtracted from the right Coach leg.This 360 TV generates a Team CycleBonus payout.

The remaining 60 TV in the leftCoach leg and the 80 TV in the right Coach leg are available to becounted towards the next Team Cycle.

III) RUBY COACH – EARN SIX DIFFERENT WAYS

Qualifications • Be a Million Dollar Body Coach.• Maintain active status - To become and remain an active active MDB Coach, you need to have earned a

minimum of 50 Personal Volume (PV) points within the previous 30 days of the pay period being calculatedand paid. (Also, see Glossary: active status - Grace Period)

• Develop and maintain two (2) personally sponsored active and qualified Emerald Coaches (or higherranks), with one (1) of these active and qualified Emerald Coaches placed in the left side Coach leg of yourCBC, and the other active and qualified Emerald Coach placed in the right Coach side leg of your CBC.

BenefitsRetail Commissions (paid weekly)1. Earn a 25% commission on the retail sales price of most MDB products (paid weekly) and earn a 15%

commission on the product sales to personally enrolled MDB Club members.

2. Million Dollar Body Club Membership Commissions (paid quarterly)Earn a 50% commission on your personal customer sales and renewals of MDB Club online memberships

3. Showcase Pack Bonus (SPB) (paid weekly)Earn a $50 Showcase Pack Bonus (SPB) when a personally sponsored Coach orders a Showcase Packwithin their first 30 days of their enrollment as a Coach.

4. Showcase Pack – Sponsors Bonuses (SPSB) (paid weekly)Every time a Showcase Pack is sold by any coach in the first five levels of your direct line of sponsorship,you earn a $5 Showcase Pack - Sponsors Bonus. Note: Active status is a requirement to earn any SPSB.

5. Team Cycle BonusesAs an active and qualified Ruby Coach, your CBC can start accumulating and banking (holding) TeamVolume (TV) from your CBC’s left and right Coach legs (regardless of depth) and is eligible to start earningTeam Cycle Bonuses.

Team Cycle Bonuses - Ruby Coach• up to a $19 Team Cycle Bonus for active and qualified Ruby Coaches with 50 PV

• up to a $20 Team Cycle Bonus for active and qualified Ruby Coaches with 75 PV

• up to a $21 Team Cycle Bonus for active and qualified Ruby Coaches with 100 PV (with at least 25 PVgenerated from Web site retail sales and/or online MDB Club memberships).

• up to a $22 Team Cycle Bonus for active and qualified Ruby Coaches with 125 PV (with at least 25 PVgenerated from Web site retail sales and/or online MDB Club memberships).

Allowable Daily Team Cycles for Ruby CoachesA Ruby Coach can theoretically cycle their CBC and earn Team Cycle Bonuses up to 75 times daily.

CBC Master Cycles and Carry Over Team Volume (TV)When a CBC completes 300 consecutive and payable Team Cycle Bonuses, a Master Cycle occurs and amaximum of 5000 TV in the strong leg and the entire TV in the weak leg will carry over to the next cycle,which may occur on the same day.

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RANKS, QUALIFICATIONS & BENEFITS

Team Cycle Bonus Account Fund and Team Cycle Bonus Cap Each week, 35% of the total company BV is set aside for Team Cycle Bonus payouts. In order to maintain the profitability required to successfully fund and operate the Million Dollar Body opportunity and to ensurebusiness stability for the Independent Million Dollar Body Coaches, the company has established a cap of 35% of the total accumulated company BV to be paid in Team Cycle Bonuses, and may implement a TeamCycle Bonus payout adjustment, if necessary, which will adjust all Team Cycle Bonus payouts equally in orderto maintain the established cap.

6. Matching Check Bonus: as an active and qualified Ruby Coach, you can earn 5% of the weekly Team Cycle Bonus check amounts earned by your personally sponsored active and qualified Emerald, Ruby, andDiamond Coaches.

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RANKS, QUALIFICATIONS & BENEFITS

IV) DIAMOND COACH - EARN SIX DIFFERENT WAYS

Qualifications • Be a Million Dollar Body Club Coach.

• Maintain active status - To become and remain an active MDB Coach, you need to have achieved aminimum of 50 Personal Volume (PV) points within the previous 30 days of the pay period being calculatedand paid. (Also, see Glossary: Active Status - Grace Period)

• Develop and maintain two (2) personally sponsored active and qualified Emerald Coaches (or higherranks), with one (1) active and qualified Emerald Coach placed in the left Coach leg of your CBC, and one (1) active and qualified Emerald Coach placed in the right Coach leg of your CBC.

• Personally sponsor and maintain six additional active MDB Coaches by:

(A) placing three active and qualified additional Coaches on the left Coach leg of your CBC

(B) placing three additional active and qualified Coaches on the right Coach leg of your CBC

Note: To become and maintain an active and qualified Diamond Coach rank, you need to achieve aminimum of three (3) active and qualified Coaches and one (1) active and qualified Emerald Coach in the leftCoach leg and a minimum of three (3) active and qualified Coaches and one (1) active and qualifiedEmerald Coach in the right Coach leg of a qualifying CBC. This represents a combined total of a minimum ofeight (8) personally sponsored active Coaches of which two Emerald Coaches (or higher ranks) may becounted towards the eight (8) personally sponsored Coaches minimum requirement.

BenefitsRetail Commissions (paid weekly)1. Earn a 25% commission on the retail sales price of most MDB products (paid weekly) and earn a 15%

commission on the product sales to personally enrolled MDB Club members.

2. Million Dollar Body Club Membership Commissions (paid quarterly)Earn a 50% commission on your personal customer sales and renewals of MDB Club - online memberships

3. Showcase Pack Bonus (SPB) (paid weekly)Earn a $50 Showcase Pack Bonus (SPB) when a personally sponsored Coach orders a Showcase Packwithin their first 30 days of their enrollment as a Coach.

4. Showcase Pack – Sponsors Bonuses (SPSB) (paid weekly)Every time a Showcase Pack is sold by any coach in the first five levels of your direct line of sponsorship,you earn a $5 Showcase Pack - Sponsors Bonus. Note: Active status is a requirement to earn any SPSB.

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1 2

3

4 5

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RANKS, QUALIFICATIONS & BENEFITS

5. Team Cycle BonusesAs an active and qualified Diamond Coach rank, your CBC can start accumulating and banking (holding)Team Volume (TV) from your CBC’s left and right Coach legs (regardless of depth) and be eligible to startearning Team Cycle Bonuses.

Team Cycle BonusesYou can earn a Team Cycle Bonus of up to $25 each time your CBC “cycles” by generating 360 TV with aminimum of 1/3 of the TV (120 TV) in one leg and 2/3 of the TV (240 TV) in the other leg. Each timeyour CBC “cycles with 360 TV” with the proper balance of 1/3 TV – 2/3 TV, the 360 TV will be deducted(120 TV in one leg and 240 TV in the other leg) from your total accumulated CBC - TV and the remainingqualified TV will carry over into the next CBC cycle of 360 TV (per the MDB Team Compensation Plan).

Team Cycle Bonuses - Diamond Coach• up to a $22 Team Cycle Bonus for active and qualified Diamond Coaches with 50 PV • up to a $23 Team Cycle Bonus for active and qualified Diamond Coaches with 75 PV • up to a $24 Team Cycle Bonus for active and qualified Diamond Coaches with 100 PV (with at least 25

PV generated from Web site retail sales and/or online MDB Club memberships.• up to a $25 Team Cycle Bonus for active and qualified Diamond Coaches with 125 PV (with at least 25

PV generated from Web site retail sales and/or online MDB Club memberships.

Allowable Daily Team Cycles for Diamond CoachesA Diamond Coach can theoretically cycle their CBC and earn Team Cycle Bonuses up to 150 times daily.

CBC Master Cycles and Carry Over Team Volume (TV)When a CBC completes 300 consecutive and payable Team Cycle Bonuses, a Master Cycle occurs and amaximum of 5000 TV on the strong leg and the entire TV on the weak leg will carry over to the nextcycle, which may occur on the same day.

Team Cycle Bonus Account Fund and Team Cycle Bonus Cap Each week, 35% of the total company BV is set aside for Team Cycle Bonus payouts. In order to maintain the profitability required to successfully fund and operate the Million Dollar Body opportunity and to ensurebusiness stability for the Independent Million Dollar Body Coaches, the company has established a cap of 35%of the total accumulated company BV to be paid in Team Cycle Bonuses, and may implement a Team CycleBonus payout adjustment, if necessary, which will adjust all Team Cycle Bonus payouts equally in order tomaintain the established cap.

6. Matching Check Bonus As an active and qualified Diamond Coach, you can earn 10% of the weekly Team Cycle Bonus checkamounts earned by your personally sponsored active and qualified Emerald, Ruby and Diamond Coaches.

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RANKS, QUALIFICATIONS & BENEFITS

V. STAR DIAMOND COACHES

Qualifications DOUBLE STAR DIAMOND COACH

Only a Coach’s CBC#1 can earn this rank

To become a Double Star Diamond Coach, a CBC must have accomplished the following for four (4)consecutive weekly bonus- pay periods (a rolling 5 -week qualification period):

A) Must be a Diamond Coach (i.e., Must have achieved the qualifications to become a Diamond Coach)

B) Must have at least 1 personally sponsored active Diamond Coach in the left Coach leg of CBC#1and at least 1 personally sponsored active Diamond Coach in the right Coach leg of CBC#1. BothActive Diamonds must be personally sponsored by CBC#1.

FIVE STAR DIAMOND COACH Only a Coach’s CBC#1 can earn this rank

To become a Five Star Diamond Coach, a CBC must have accomplished the following for four (4)consecutive weekly bonus- pay periods (a rolling 5-week qualification period):

A) Must be a Double Star Diamond Coach (i.e., Must have achieved the qualifications to become aDouble Star Diamond Coach)

B) Must have at least 3 additional personally sponsored active Diamond Coaches with at least 1 inone Coach leg of CBC#1 and at least 2 in the other Coach leg of CBC#1. The 3 additional activeDiamond Coaches can be personally sponsored by any of the Coach’s CBCs.

TEN STAR DIAMOND COACH Only a Coach’s CBC#1 can earn this rank

To become a Ten Star Diamond Coach, a CBC must have accomplished the following for four (4)consecutive weekly bonus- pay periods (a rolling 5-week qualification period):

A) Must be a Five Star Diamond Coach (i.e., Must have achieved the qualifications to become a FiveStar Diamond Coach)

B) Must have at least 5 additional personally sponsored active Diamond Coaches. The 5 additionalactive Diamond Coaches can be personally sponsored by any of the Coach’s CBCs. A Ten StarDiamond Coach will have at least 10 personally sponsored active Diamond Coaches of which, atleast 5 must be in one Coach leg of CBC#1 and at least 5 must be in the other Coach leg of CBC#1.

SUPER STAR DIAMOND COACHOnly a Coach’s CBC#1 can earn this rank

To become a Super Star Diamond Coach, a CBC must have accomplished the following for four (4)consecutive weekly bonus- pay periods (a rolling 5 -week qualification period):

A) Must be a Ten Star Diamond Coach (i.e., Must have achieved the qualifications to become a TenStar Diamond Coach)

B) Must have at least 5 additional personally sponsored Active Diamond Coaches anywhere in thedownline. The 5 additional Active Diamond Coaches can be personally sponsored by any of theCoach’s CBCs.

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RANKS, QUALIFICATIONS & BENEFITS

Note: In order for a Diamond Coach to qualify for Star Diamond ranks, the active and qualified DiamondCoach and all of their personally sponsored active and qualified Diamond Coaches used to qualify for StarDiamond rank must have achieved active and qualified status for a minimum of four (4) consecutive weeklybonus pay periods in the quarterly bonus pool period being calculated (in order to qualify for each particularquarterly Star Diamond Bonus Pool).

Benefits1. Star Diamond Production Bonus – Paid Quarterly

Million Dollar Body sets aside 2% of the total company BV, which is paid quarterly to top producingqualified Star Diamond Coaches.

Each of the Star Diamond ranks share equally in each Star Diamond Production bonus pools in which theyare qualified to participate in. Each of the four (4) different Star Diamond Production bonus pools is fundedwith 1/2% of the total company BV.

• All qualified Double Star Diamond Coaches share in the 1/2% Double Star Diamond bonus pool.

• All qualified Five Star Diamond Coaches share in the 1/2% Double Star Diamond bonus pool and in the1/2% Five Star Diamond bonus pool.

• All qualified Ten Star Diamond Coaches share in the 1/2% Double Star Diamond bonus pool, in the1/2% Five Star Diamond bonus pool, and in the 1/2% Ten Star Diamond bonus pool.

• All qualified Double Star Diamond Coaches share in the 1/2% Double Star Diamond bonus pool, in the1/2% Five Star Diamond bonus pool, in the 1/2% Ten Star Diamond bonus pool, and in the 1/2% SuperStar Diamond bonus pool.

• Any unpaid accumulated Star Diamond Development bonuses will roll over into the next quarterlyqualification period until they are paid.

2. Additional Coach Business Center(s)Once a Coach’s CBC#1 achieves the Double Star Diamond Coach rank, it can optionally request to open up one additional CBC (CBC#2) downline from CBC#1. CBC#2 can then start the process of building andqualifying CBC#2 to achieve the active and qualified Emerald Coach, Ruby Coach, and Diamond Coach ranks.

Once CBC#2 has achieved an active and qualified Diamond Coach rank and has personally sponsoredtwo (2) other active and qualified Diamond Coaches, with one (1) of these active and qualified DiamondCoaches in their left Coach leg and one (1) of these active and qualified Diamond Coaches in their rightCoach leg of CBC#2 for four (4) consecutive weekly bonus- pay periods, then CBC#2 can (optionally)request to open up one additional CBC (CBC#3) downline from CBC#2. CBC#2 can then start the processof building and qualifying CBC#3 to achieve the active and qualified Emerald Coach, Ruby Coach, andDiamond Coach ranks. This process of qualifying for additional Coach Business Centers may be repeateduntil a Coach has a maximum total of ten (10) Coach Business Centers.

Retail sales requirements for all additional Coach Business Centers For each additional downline CBC that a Coach opens, 100 % of the PV (which determines the Team CycleBonus eligibility amounts for each rank for a specific pay period) needs to be generated through retail sales(i.e., non-Coach orders) generated from Web site retail sales and online MDB Club memberships.

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RANKS, QUALIFICATIONS & BENEFITS

GLOSSARY

Accumulating Team Volume (TV)Commencing with the active and qualified Emerald Coach rank, a CBC can start accumulating and banking(holding) Team Volume (TV) from it’s left and right Coach legs (regardless of depth) and become eligible tostart earning Team Cycle Bonuses and other bonuses per the MDB Team Compensation Plan.

Active Status To become and remain an active MDB Coach, you need to have generated a minimum of 50 PersonalVolume (PV) points within the previous 30 days of the pay period being calculated and paid. (Also, seeGlossary: Active Status - Grace Period).

Active Status - Grace Period A period of five (5) days added to the 30 days used to determine active status. This makes the period foractive status a rolling five (5) weeks.

Note: Because 30 days is two (2) days more than four weeks (28 days), active status will be calculated usinga rolling five (5) week period. The additional 5 days added to the 30-days active status requirement is calledthe “Grace Period”.

Active and Qualified Means that a Coach with the rank of Emerald Coach, Ruby Coach or Diamond Coach has generated aminimum of 50 PV within the previous 30 days to ensure active status and has met all the qualificationscommensurate to their rank according to the MDB Team Compensation Plan.

Achieved RankThe rank which a Coach has reached within the MDB Team Compensation Plan.

Activate - Activated - Activating a CBCThis describes the process that is accomplished when an Coach becomes an active and qualified EmeraldCoach by developing a team of two (2) personally sponsored active Coaches (with a minimum of 50 PVeach), with one active Coach placed in the left Coach leg of their Coach Business Center and one other activeCoach placed in the right Coach leg of their Coach Business Center. Once activated, a CBC startsaccumulating and banking (holding) ALL DOWNLINE TV from that CBC so that Team Cycle Bonuses andother bonuses can be earned and paid to active and qualified Emerald, Ruby and Diamond Coaches.

AgreementThe contract between the company and each Independent Million Dollar Body Coach includes theIndependent Million Dollar Body Coach Application and Agreement, the Million Dollar Body Policies and Procedures, and the Million Dollar Body Compensation Plan, all in their current form and as may be amended by Million Dollar Body in its sole discretion. These documents are collectively referred to as the “Agreement.”

Accumulating CBC Team VolumeTeam Volume (TV) starts accumulating once a CBC becomes activated.

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Bonus(es)A bonus paid per the Million Dollar Body Career Compensation Plan. There are five different bonuses. Theyare: 1) the Showcase Pack Bonus (SPB); 2) the Showcase Pack Sponsors Bonuses (SPSB); 3) the Team CycleBonuses (TCB); 4) the Matching Check Bonuses, and 5) the Star Diamond Production Bonuses.

Bonus Compression (Showcase Pack – Sponsors Bonuses (SPSB)If a SPSB payment cannot be paid to a Coach because that Coach is inactive in a given bonus pay period,then the SPSB payment will “compress up” to the next active and qualified Coach upline. (i.e. if a Coach sells a Showcase Pack to a new Coach, then any SPSB payments will be paid through the direct line ofsponsorship of the selling Coach to active Coaches only.

BV (Bonus Volume)This is the bonus point value amount the company uses to calculate and paid bonuses.(also, see PersonalVolume (PV) and Team Volume (TV).

Coach Business Center (CBC)A Million Dollar Body compensation structure used to track a Coach’s retail sales and any TV generated by a Coach’s downline team sales organization. When “activated,” a CBC has two active legs that start toaccumulate TV. A “right Coach leg” and a “left Coach leg.” Once 360 TV has accumulated within the CoachBusiness Center with the proper balance of 1/3 (120 TV) in one Coach leg and 2/3 (240 TV) in the otherCoach leg, the CBC “cycles” and pays active and qualified Emerald Coaches (and higher ranks) a “Team CycleBonus” and then immediately carries over any qualified residual TV to begin another CBC cycle of 360 TV.

CBC – TV Counter Zero ResetThe removal of all the Team Volume (TV) from the left Coach leg (LV) and the right Coach leg (RV) of a Coach Business Center (CBC). Once a CBC - TV Counter Zero Reset occurs, the TV that was removed is nolonger available to be counted in calculating Team Cycle Bonuses. The CBC – TV Counter Zero Reset occurs at the end of any day that a Coach (all ranks) does not maintain their active status.

CommissionThis is compensation paid on the retail selling price of the MDB products and online Million Dollar Body Clubmembership services.

Cycle (Cycling)Once 360 BV has accumulated within a Coach’s Business Center with the proper balance of 1/3 (120 TV) inone Coach leg and 2/3 (240 TV) in the other Coach leg, the CBC “cycles” and pays active and qualifiedEmerald Coaches (and higher ranks) a “Team Cycle Bonus” and then immediately carries over any residualqualified TV to commence another CBC cycle.

Note: The MDB software system determines which leg is the weak leg between the cycles in a week. Forinstance if a CBC has 260 TV in the left Coach leg and 200 TV in the right Coach leg before cycle 1 (360 TVwith 240 TV – 120 TV balance is deducted from the total of both legs), the system determines that the leftCoach leg is the strong leg in cycle 1 (260 TV) and the right Coach leg (200 TV) is the weak Coach leg in cycle1. After cycle 1 is complete, the right Coach leg (with 80 TV carried over… i.e., 200 TV – 120 TV = 80 TV)becomes the strong Coach leg and the left Coach leg (with 20 TV carried over… i.e., 260 TV – 240 TV = 20TV) becomes the weak Coach leg. In other words, the swapping of strong and weak leg determination oftenoccurs between Team Cycle Bonus cycles. This is standard binary compensation plan methodology.

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GLOSSARY

17

GLOSSARY

In the Million Dollar Body back-office software, left and right Team Volume is denoted as LV (Left Volume) andRV (Right Volume).

Cycling Example - Four Complete Cycles

CustomerA customer or retail customer is associated with an MDB Coach. However, a customer can not signup other Coaches or customers and cannot receive commissions or bonuses. A customer is not placed in any genealogy.

Day PeriodA day is calculated from 12:00 AM to 11:59 EST.

Daily Cycles Per Rank (Team Cycle Bonuses)An Emerald Coach can cycle their CBC and earn Team Cycle Bonuses up to 40 times daily, a Ruby Coachcan cycle their CBC and earn Team Cycle Bonuses up to 75 times daily, and a Diamond Coach can cycletheir CBC and earn Team Cycle Bonuses up to 150 times daily.

Downline – Binary PlacementThe MDB Coaches personally sponsored by an MDB Coach, as well as any MDB Coaches that may besponsored by any MDB upline Coaches and placed in the downline binary genealogy of any Coach BusinessCenter owned by another MDB Coach

Downline – Direct Line of SponsorshipThe MDB Coaches personally sponsored by an MDB Coach, as well as all the MDB Coaches they sponsor, etc.

Example: Chris (A) sponsors Bill (B) and Bill sponsors Mary (C), who sponsors Careen (D), who then sponsors Bob (E). All the MDB Coaches (B through E) are in a downline - direct line of sponsorship from Chris (A). Conversely, starting with Bob (E) the upline - direct line of sponsorship from him would be Careen (D), Mary(C), Bill (B), and Chris (A).

Left Team Volume (LV) Right Team Volume (RV) Cycles3700 580-240 -120 13460 460-240 -120 23220 340-240 -120 32980 220-240 -120 42740 100---------------------------------------------4 cycles complete-------------------------------------------2740 100 Carryover to the next cycle

GenealogyThe company’s overall structure that indicates how and where MDB Coaches with their CBCs are placed.company supports a single Binary genealogy in which there are a maximum of two (2) MDB Coach BusinessCenters per level (i.e., two (2) MDB Coaches and their CBCs on any MDB Coaches CBC first level). The binary genealogy is used to determine the payout amounts of retail commissions as well as bonus qualifications.

Inactive Status – TV Counter Reset To ZeroTo become and remain an active MDB Coach, you need to have generated a minimum of 50 Personal Volume(PV) points within the previous 30 days of the current pay period (or for the pay period being calculated andpaid). (See, Active Status - Grace Period). Failure to remain active results in an Inactive status.

Since bonuses and cycles are calculated daily, on any day that a Coach becomes inactive, their CBC will loseany accumulated TV (see – CBC - TV Counter Zero Reset) and their CBC - TV is reset to zero TV. Once activestatus is again established by the Coach whose CBC has been previously activated, their CBC immediatelystarts to accumulate and bank (hold) new TV again (based upon the MDB Team Compensation Plan) and theCBC can start earning Team Cycle Bonuses and other bonuses again.

Leadership RanksRefers to the Million Dollar Body active and qualified Emerald Coaches, active and qualified Ruby Coachesand active and qualified Diamond Coaches, active and qualified Double Star Diamond Coaches, active andqualified Five Star Diamond Coaches, active and qualified Ten Star Diamond Coaches, and active andqualified Super Star Diamond Coaches.

Left Team Volume (LV)LV - represents a Coach Business Center’s downline Team Volume for their left Coach leg.

Master CyclesWhen a CBC completes 300 consecutive and payable Team Cycle Bonuses, a Master Cycle occurs and amaximum of 5000 TV on the strong leg and the entire TV on the weak leg will be carry-over to the next cycle,which may occur on the same day.

MDB Million Dollar Body

Official RankThe rank which an MDB coach has achieved in the MDB Career Compensation Plan. Once an “Official” MDBrank has been achieved, it is permanent.

Paid-As-RankThe rank which an MDB Coach is paid based upon their actual weekly bonus pay period status andqualifications versus their achieved “Official” rank.

Pay PeriodThe MDB weekly time frame period for totaling all sales, commissions and bonuses commences each Mondaymorning at 12:00 AM, EST to the next following Sunday night at 11:59 PM, EST. Commissions and Bonusesare calculated daily and paid weekly – two weeks in arrears.

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GLOSSARY

Personally SponsoredMDB Coaches directly sponsored by another MDB Coach.

PV (Personal Volume)This is your Personal Volume produced through your personal orders and sales. It is used to determine youractive Coach status and is also part of the “active and qualified” requirement for achieving and maintainingthe active and qualified Emerald, Ruby and Diamond Coaches ranks. PV is also used to determine theamount of Team Cycle Bonuses that may be earned by eligible Emerald, Ruby and Diamond Coaches in eachbonus pay period week.

QualifiedRefers to when an active Coach activates and then maintains a minimum of two (2) other active Coaches intheir downline CBC organization: with one active Coach in their left Coach leg and one active Coach in theirright Coach leg. If a CBC is not qualified due to the Coach being inactive or by not maintaining two otheractive Coaches with one active Coach in each leg, then that CBC has not met the minimum qualifications forit’s rank and therefore is not eligible (qualified) to earn Team Cycle Bonuses, Matching Bonuses or ProductionBonuses. Additionally, if an active Coach becomes inactive (even though they may have active Coaches intheir left Coach leg and active Coaches in their right Coach leg) then their CBC does not retain anyaccumulated TV and the TV counter is reset to zero. (See, Glossary: CBC – TV Counter Zero Reset)

RanksThere are eight (8) ranks of Million Dollar Body Coaches. They are:

I. CoachII. Emerald CoachIII. Ruby CoachIV. Diamond CoachV. Double Star Diamond CoachVI. Five Star Diamond CoachVII. Ten Star Diamond CoachVIII. Super Star Diamond Coach

Ranks, as well as commissions, and bonuses are calculated daily because daily active Status and RankQualifications determine the eligibility for different bonuses.

ResalableSales aids shall be deemed “resalable” if each of the following elements is satisfied: 1) they are unopenedand unused; 2) packaging and labeling has not been altered or damaged: 3) the product and packaging arein a condition such that it is a commercially reasonable practice within the trade to sell the merchandise at fullprice; 4) products are returned to the MDB company within one year from the date of purchase; and 5) theproduct contains current MDB labeling. Any merchandise that is clearly identified at the time of sale as non-returnable, discontinued, or as a seasonal item, shall not be resalable.

Retail SalesRetail Sales are purchases made by an individual who is not an MDB Coach.

Right Team Volume (RV)RV - represents a Coach Business Center downline Team Volume for their tight Coach leg.

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GLOSSARY

SponsorAn MDB Coach who enrolls another MDB Coach into the Company. The act of enrolling others and trainingthem to become MDB Coaches is called “sponsoring.”

Strong Team LegIt is the Coach leg with the most total amount of TV between an MDB Coach Business Center’s left Coach legand right Coach leg.

Team Cycle Bonuses and Carryover TVBonuses earned by active and qualified (paid as) Emerald, Ruby, or Diamond Coaches based upon thecumulative TV of their two teams of Coaches: called the left Coach leg and the right Coach leg. When anactive and qualified Coach Business Center generates a total of 360 cumulative TV, with a minimum of 1/3 ofthe TV (120 TV) in one Coach leg and 2/3 of the TV (240 TV) in the other Coach leg, the CBC completes a360 TV – Team Cycle Bonus “Cycle” and the Coach is paid as they are qualified and eligible to be paid perthe MDB Team Compensation Plan. Once a CBC completes a “Team Cycle Bonus“ – “Cycle”, the appropriateamount of the 360 TV is subtracted from the Coaches CBC left Coach leg and right Coach leg and anyremaining accumulated TV can carryover in each leg to commence another cycle of accumulating 360 TV tobe credited towards earning more bonuses based upon the MDB Team Compensation Plan.

Team Volume (TV)This is the sum total of all the individual PV generated by the downline Coaches of an MDB Coach’s BusinessCenter in the MDB Team Compensation Plan. In the Coaches back-office management system, a CBC’s TV isreferred to as Left Volume (LV) and Right Volume (RV).

UplineThis term refers to the MDB Coach or MDB Coaches above a particular MDB CBC directly up to the company.

Weak Team LegIt is the Coach leg with the least total amount of TV between a MDB Coach Business Center’s - left Coach legand right Coach leg.

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GLOSSARY

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