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AKEA PROSPERITY PLAN
                                     EFFECTIVE MAY 9, 2012




                                                                       900 RIDGEFIELD DR., SUITE 170
                                                                                 RALEIGH, NC 27609
                                                             TEL: 919.981.6110; FAX: 919.981.6111
PLAN EFFECTIVE DATE: MAY 9, 2012                                                 WWW.AKEALIFE.COM
©2012 AKEA LLC                                                              AKEACARE@AKEALIFE.COM
Akea Prosperity Plan
The Akea Prosperity Plan provides you with many ways to earn both part time immediate income as well as long-term,
residual income. Each week Akea pays out a guaranteed fifty percent (50%) of the total company Commissionable
Volume (CV). This amount is paid to qualified Akea Independent Consultants in commissions and bonuses.
Here is a summary of the ways you can receive compensation.


Prosperity Plan Overview
1.    Customers
      a.    Retail Profit
            Quickly earn profits by selling Akea products to customers at retail price. You can sell directly or refer customers to your
            Akea replicated website to make their purchases. All retail volume is counted towards your Personal Volume (PV).
      b.    Preferred Customer Bonus (PCB)
            Akea offers a Preferred Customer program that is unique and highly rewarding. Preferred Customers are afforded a
            significant discount for enrolling in a monthly autoship program. Active Consultants receive 40% in commissions on their
            Preferred Customers Commissionable Volume (CV). 20% of Preferred Customer Commissionable Volume (CV) is applied
            toward Personal Volume (PV), flows into the Team Volume (TV), and is used for all other Prosperity Plan calculations.
            Example:               Your Preferred Customer purchases two cans of Essentials for $110/100 CV.
                                   You will receive a $40 PCB (40% of 100 CV).
                                   20 CV is applied to your Personal Volume (PV) as well as the Team Volume (TV).

2.    Fast Start Bonus (FSB)
      Earn 15% - 20% of the Commissionable Volume (CV) on the enrollment order of everyone you personally sponsor. The amount
      of the FSB is dependent on your Personal Volume (PV).
          • 100 PV = 20% FSB
          • 50 PV = 15% FSB
      40% of the Commissionable Volume (CV) on FSB orders flows into the Team Volume (TV) and is used for all other Prosperity Plan
      calculations.
      Example:           If an enrollment pack has 200 CV, you as the sponsor would receive $40 (if active at 100 PV). 80 CV is applied to
                         Team Volume (TV).

3.    Matching Fast Start Bonus (MFSB)
      It is important as an Akea Independent Consultant to help those whom you have personally sponsored. Akea will reward you
      with a special bonus for this effort called the Matching Fast Start Bonus. When one of your personally sponsored Consultants
      sponsors a new Akea Independent Consultant, you earn a 50% match of the FSB they receive. You must be at 100 PV to qualify
      for MFSB.
      Example:           You sponsor Eric. Eric in turn sponsors Joyce. Joyce orders a 200 CV package to start her Akea business. Eric would
                         receive a $40 FSB for Joyce's order. You would receive a $20 MFSB for Joyce's order which is 50% of Eric's FSB. This
                         example assumes that you and Eric both qualify with 100 PV. If Eric only qualified with 50 PV and you qualified
                         with 100 PV, Eric would receive $30 FSB and you would receive $15 MFSB.

4. Team Bonus and Team Leader Bonus
      a. Team Bonus (TB)
      Success in the Akea Prosperity Plan requires team work and duplication. The Team Bonus has been designed specifically to
      facilitate and reward you for these efforts. Simply put, enroll 2 who enroll 2 and duplicate!
      You earn the TB when you (               ) sponsor 2 (   ) who each sponsor 2 (         ) (based on personal sponsorship tree) within your first
      4 full weeks of joining Akea.

PLAN EFFECTIVE DATE: MAY 9, 2012
©2012 AKEA LLC                                                         AKEA PROSPERITY PLAN                                                    PAGE 1 OF 8
The amount the TB pays is dependent on your Personal Volume (PV).
            •      100 PV = $100 TB
            •      50 PV = $25TB




                    Figure 1

            Note:          You can earn the TB only 1 time.
                           Everyone (all 7) must be Active with at least 50 PV.
      b. Team Leader Bonus (TLB)
      The Team Leader Bonus rewards you for teaching the duplication process. You ( ) earn the TLB every time you help one of
      your personally sponsored consultants ( ) achieve the Team Bonus. The amount the TLB pays is dependent on your Personal
      Volume (PV).
            •      100 PV = $100 TLB
            •      50 PV = $25 TLB




                                   Figure 2

      Note:          There is no limit to how many times you can earn the TLB. You earn it every time one of your personally sponsored
                     consultants achieves the TB.




PLAN EFFECTIVE DATE: MAY 9, 2012
©2012 AKEA LLC                                                      AKEA PROSPERITY PLAN                                          PAGE 2 OF 8
5.    Team Commissions
      The real potential of the Akea Prosperity Plan opens up once you begin to build a team and start earning Team Commissions.
      Team Commissions are a residual override paid on the team of Consultants in your
      placement tree. This organization, based on a "binary" (meaning 2), is comprised of
      two legs, your pay leg and your strong leg (the pay leg has the lesser amount of
      volume and the strong leg has the greater amount of volume). Those under you will
      include, but are not limited to, everyone you personally sponsored and those they
      sponsor. You, your sponsor, or anyone else above you in the placement genealogy
      may place Consultants in your organization in either one of your legs (known as
      spillover). Your Team Volume (TV) is the sum total of the Personal Volume (PV) of all
      Consultants in your placement tree.
      You are eligible to receive Team Commissions of 10-% to 20% (see Table 1 for details)
      once you are Active with 50 PV and qualified (personally sponsor someone on your
      left and right legs in your placement tree and they are each Active with at least
      50 PV). Team Volume (TV) will accumulate and carry over from week to week
      provided you remain Active. When you accumulate at least 300 Pay Leg Volume
      (PLV) and Strong Leg volume, Team Commissions will be paid. Once paid, any
      leftover volume on your strong leg will carry over provided you remain Active. If you                               Figure 3
      do not remain Active during a qualification period the volume on both the Pay Leg
      and Strong Leg will be reset to zero.
      Example: Everyone in Figure 3 has 100 PV this week. You have 700 TV on your right leg and 400 TV on your left leg. You receive a
      Team Commission of $40 (10% of the 400 Pay Leg Volume [PLV]).
      You may earn up to $25,000 per week in Team Commissions.

                                               Team Commissions
                                                        Weekly
                                               Payout   Earning
                        Rank                      %    Potential
        Consultant                               n/a         n/a
        Associate (A)
        Sr. Associate (SA)                      10%         $1,500
        Director (DIR)
        Sr. Director (SD)                       12%        $2,000
        Executive Director (ED)                 14%        $2,500
        Regional Director (RD)                  16%        $5,000
        National Marketing Director (NMD)       18%       $10,000
        Global Marketing Director (GMD)         20%       $25,000

                                   Table 1

6.    Matching Bonus (MB)
      You can earn a Matching Bonus on any Akea Consultant you personally sponsored, their personally sponsored Consultants, and
      so on for up to 5 generations—no matter which placement leg they're in. The MB pays up to 20% of each generation's Team
      Commissions.
                                           Matching Bonus:                                              Weekly earning
                           Paid on Generations of Senior Director and Higher                              potential per
                    # Generations Paid                 1        2        3              4     5    individual being matched
          Executive Director (ED)                     20%                                                       $500
          Regional Director (RD)                      20%      20%                                             $1,500
          National Marketing Director (NMD)           20%      20%      20%                                    $3,000
          Global Marketing Director (GMD)             20%      20%      20%            20%   20%               $5,000

                                                           Table 2
      The MB is determined by generations in your personal sponsorship tree. A Senior Director Generation is the basis upon which
      the Matching Bonus is paid. The first Senior Director Generation is the first Paid-As Senior Director or higher encountered in


PLAN EFFECTIVE DATE: MAY 9, 2012
©2012 AKEA LLC                                                       AKEA PROSPERITY PLAN                                            PAGE 3 OF 8
each leg in your personal sponsorship tree. The next Paid-As Senior Directors or higher encountered below the first ones in the
      leg would be considered a 2nd Senior Director Generation.

7.    Leadership Pool
      Akea guarantees a weekly payout of 50% of total company Commissionable Volume (CV). The Leadership Pool is based on a
      floating percentage and is distributed weekly. The percentage is determined after all other commissions and bonuses in the
      Prosperity Plan are calculated and is funded with whatever is available up to the 50%. Those who wish to participate must
      qualify by being Paid-As a Regional Director or higher.
      Each participant will receive a prorated share of the pool based on his or her Pay Leg Volume (PLV) compared to the total
      combined Pay Leg Volume of all those participating in the pool that week. For example, if the total combined Pay Leg Volume
      (PLV) of all those participating in the pool equals $200,000 in the week, and Sam has a Pay Leg Volume (PLV) of $4,000, he
      would receive 2% of the Leadership Pool that week.

8.    Expense Allowance
      Paid-As Regional Directors and above are eligible to receive the following Expense Allowance for use in building their Akea
      business.
                         •         Regional Director ......................... $ 500/month
                         •         National Marketing Director......... $ 750/month
                         •         Global Marketing Director ............ $1,000/month
      Expense Allowance will be paid weekly based upon the following formula:
            Weekly Expense Allowance = Month Expense Allowance * 12/52
      Note: To receive the Expense Allowance you must be qualified at applicable title for 6 out of 8 rolling weeks.

9.    Founders' Club
      The Founders' Club will be an exclusive club reserved for Akea's top performing Consultants. The Founders' Club will be limited
      to 25 members who are eligible to be Paid As Founders.
      Qualifications for the Founders' Club are as follows:
      •     The first 15 Founders' Club Members qualified as of March 18, 2012.
      •     The next 5 Founders’ Club Members will qualify by being Paid As Regional Director (RD) for at least 4 out of 8 rolling weeks
            AND have a minimum of 150 active Consultants in their Pay Leg in each qualifying week.
      •     Akea will set the Founders' Club Qualifications for the final 5 spots at its sole discretion.
      •     The granting of Founders’ Club Membership is subject to review and approval by Akea.
      •     A Charter Member is a Founders' Club Member who qualified by the commission week ending July 3, 2011.
      After the initial qualification for the Founders' Club, a Consultant will be "Paid-As a Founder" when the Consultant's Paid-As Title
      is at or above his/her Founders' Club Qualifications Title in a given commission period.
      Founders' Club Pool
      • Each rolling 4 weeks that a new company record for Commissionable Volume (CV) is achieved, the Founders' Club Pool will
         be funded with 10% of the difference between the old and the new record, up to 3% of the company's Commissionable
         Volume (CV) for that commission period. If no Founder qualifies for this pool, the money is flushed (no carryover pool
         amount).
      •     A Founders' Club member will receive a portion of the pool if he/she is qualified to be Paid-As a Founder in that commission
            period. The Consultant's individual percentage of the weekly Founders' Club Pool is based on his/her Personal Sponsorship
            Tree Volume (PSTV) compared to the total of all qualified Founders' PSTV.
      •     Once a Founder, if a Consultant is not qualified to be Paid-As a Founder at least four times in a 26 week rolling period,
            he/she permanently loses his/her ability to participate in the Founders' pool but does not lose the status as a Founder (for
            recognition).
      •     In any week where the Founders' Club Pool is paid out, no individual recipient may receive more than 25% of the pool. Any
            unpaid pool amounts will not be paid out.
      •     Founders' Club Pool volume is USA only.




PLAN EFFECTIVE DATE: MAY 9, 2012
©2012 AKEA LLC                                                               AKEA PROSPERITY PLAN                                 PAGE 4 OF 8
Rank Qualifications
                                                                                                                         Weekly Pay
                                                                                                                         Leg Volume
                                         Title                  PV                      Qualifications                      (PLV)
                     Consultant                                  50   Application
                     Associate (A)                               50   2 Active Personally Sponsored Consultants                     n/a
                                                                      (1 L/1 R Placement Tree)
                     Sr. Associate (SA)                          50   2 Active Personally Sponsored Consultants                     300
                                                                      (1 L/1 R Placement Tree)
                     Director (DIR)                              50   2 Active Personally Sponsored Consultants                     500
                                                                      (1 L/1 R Placement Tree)
                     Sr. Director (SD)                          100   2 Active Personally Sponsored Consultants                   1,000
                                                                      (1 L/1 R Placement Tree)
                                                                      2 Qualified SA Legs (Personal Sponsorship Tree)
                     Executive Director (ED)                    100   2 Active Personally Sponsored Consultants                   2,500
                                                                      (1 L/1 R Placement Tree)
                                                                      3 Qualified SA Legs (Personal Sponsorship Tree)
                     Regional Director (RD)                     100   2 Active Personally Sponsored Consultants                   5,000
                                                                      (1 L/1 R Placement Tree)
                                                                      3 Qualified DIR Legs (Personal Sponsorship Tree)
                                                         1                                                                             1
                     National Marketing Director (NMD)          100   2 Active Personally Sponsored Consultants                  10,000
                                                                      (1 L/1 R Placement Tree)
                                                                      3 Qualified SD Legs (Personal Sponsorship Tree)
                     Global Marketing Director (GMD) 2          100   2 Active Personally Sponsored Consultants                  25,0002
                                                                      (1 L/1 R Placement Tree)
                                                                      3 Qualified ED Legs (Personal Sponsorship Tree)

10. Pin Recognition Program
    Active Consultants who achieve the Rank of Director and higher will be awarded one Akea logo pin to recognize their
    accomplishments.




              Director                Senior Director        Executive Director         Regional Director   National Marketing      Global Marketing
                                                                                                                 Director               Director



Weekly Pay Cycle
       All commissions and bonuses will be paid weekly. The weekly commission period runs from Monday at 12:01am Eastern time to
       Sunday at midnight Eastern time. Commissions for period X will be processed the Thursday following the end of the commission
       period (i.e., 4 days later). Funds will be available as follows:
       •    Paycards: Funds will appear on Akea paycards on the same day; i.e., Thursday
       •    Checks: Checks will be mailed on Thursday via US Postal Service.
       •    Direct Deposit (ACH): Direct deposits will appear in your bank account within one business day, typically on Friday,
            provided Thursday and/or Friday are not bank holidays.




1
    NMD Title requires 10,000 Pay Leg Volume (PLV) for 2 consecutive weeks.
2
    GMD Title requires 25,000 Pay Leg Volume (PLV) for 3 consecutive weeks.
PLAN EFFECTIVE DATE: MAY 9, 2012
©2012 AKEA LLC                                                          AKEA PROSPERITY PLAN                                                  PAGE 5 OF 8
Prosperity Plan Guarantee
      Akea will payout 50% of company total Commissionable Volume (CV) – GUARANTEED!
      The following rules will be used to guarantee the 50% payout.
      a.    Leadership Pool: Will be funded with whatever is available after all other commissions and bonuses have been paid up to
            the 50%. The Leadership Pool will be funded with a minimum of 3% of total company Commissionable Volume (CV).
      b.    Matching Bonus: Will be reduced proportionally if required to keep the overall payout at 50%, however this will not be
            reduced below 3% of total company Commissionable Volume (CV).
      c.    Team Commissions: Will be reduced proportionally for Paid as Senior Directors and higher if required to keep the overall
            payout at 50%. Team Commissions will not be reduced below 10% for any rank.




PLAN EFFECTIVE DATE: MAY 9, 2012
©2012 AKEA LLC                                                AKEA PROSPERITY PLAN                                             PAGE 6 OF 8
Definitions
 Active                            A Consultant must maintain at least 50 Personal Volume (PV) monthly to be considered Active. If a Consultant
                                   is not active, he/she receives no commissions or bonuses. 100 PV is required monthly to be Paid-As a
                                   Senior Director or higher.
 Carry Over Volume                 Excess or unused Left and/or Right Leg volume is called Carry Over Volume (COV). This occurs when the Team
 (COV)                             Commission threshold of 300 PLV is achieved in the weaker leg but there is additional volume in the stronger
                                   leg on which the distributor is not paid that week. Carry Over Volume will also occur when the Pay Leg is less
                                   than 300 PLV and both legs will accrue Carry Over Volume to the next week. The Commissionable Volume left
                                   over at the end of the week in either or both Placement Tree Legs is carried over to the next week provided
                                   the Consultant is Active. If a Consultant fails to meet the minimum monthly Active requirement then all
                                   Positive COV will be flushed in both legs.
                                   When the Team Commissions are paid on the Pay Leg Volume (PLV), an equal amount of the PLV will be
                                   subtracted from the Strong Leg Commissionable Volume for Carry Over purposes.
                                   Carry over volume will accrue up to 100,000 (one hundred thousand) CV.
 Commissionable                    Each inventory item has a Commissionable Volume (CV) assigned to it. All commission percentages apply to
 Volume (CV)                       this volume. Pay Leg Volume (PLV) is based on CV.
 Pay Leg                           This is the Leg (Placement Tree) with the lesser of total Commissionable Volume (CV) for a Consultant. This
                                   will include the Commissionable Volume (CV) and Carry Over Volume (COV) of that Leg. The other leg will be
                                   referred to as the Strong Leg. See also the 'Strong Leg' definition.
 Pay Leg Volume (PLV)              The Commissionable Volume (CV) of everyone in a Consultant's Pay Leg. In addition, Personal Volume (PV) in
                                   excess of 100 PV per week will be added to the Pay Leg Volume (PLV).
 Personal Sponsorship              Your personal sponsorship tree starts with the people you personally sponsor and grows with the ones they
 Tree                              sponsor.
 Personal Sponsorship              The Commissionable Volume (CV) of everyone in a Consultant's Personal Sponsorship Tree.
 Tree Volume (PSTV)
 Personal Volume (PV)              The total Commissionable Volume (CV) sold and purchased by a Consultant and his/her personal Customers
                                   and Preferred Customers in the current week. Any Personal Volume (PV) in excess of 100 PV will automatically
                                   be included in the Consultant's Pay Leg Volume (PLV) that week.
 Placement Tree                    The genealogy based on a "binary" (meaning 2) that has a Left and Right leg on which the Team Commissions
                                   are based. One Leg in the Placement Tree will be the Pay Leg because its Commissionable Volume (CV) will be
                                   less than the Strong Leg. The Placement Tree is used ONLY for the calculation of the Pay Leg Volume (PLV) and
                                   the Team Commissions. It is NOT used for the leg requirements of each title in the career path. One must
                                   have 1 Active personal recruit on the left and 1 Active personal recruit on the right of the Placement Tree to
                                   be eligible for Team Commissions.
 Preferred Customer                Preferred Customers are customers who have signed up for Autoship. 20% of the Commissionable Volume
                                   (CV) from a Preferred Customer will be applied to the Personal Volume (PV) of the sponsoring Consultant (not
                                   100%). 20% of PC CV will flow into Team Volume (TV).
 Requalification Policy            Badge titles for Executive Director and higher are retained for 52 weeks following any week in which you
                                   qualify. For example, if you qualify for your title in the first week of June, you will keep your badge title until
                                   the last week of May of next year (assuming 52 weeks). If, prior to the first week of June of next year, you
                                   qualify again in the second week of September, you will keep your title until the first week of September of
                                   next year (assuming 52 weeks have passed). Title demotions will occur in the 53rd week without qualification.
                                   The title that you will be demoted to in that 53rd week is the title that you qualify for in that period.
 Sr. Director Generation           A Senior Director Generation is the basis upon which the Matching Bonus is paid. The first Senior Director
                                   Generation is the first Paid-As Senior Director encountered in each leg in a Consultant's personal sponsorship
                                   tree. The next Paid-As Senior Directors encountered below the first ones in the leg would be considered a 2nd
                                   Senior Director Generation. There will often be Consultants who are not Paid-As Senior Directors or above
                                   between an upline Consultant and a downline Senior Director. These intervening Consultants are not
                                   considered an SD Generation because their Paid-As Title is less than Senior Director. The Senior Director
                                   Generation is always based on the Paid-As Title.
 Strong Leg                        This is the Leg (Placement Tree) with the greater of total Commissionable Volume (CV) for a Consultant
                                   compared to the lesser or Pay Leg that week. This will include the Commissionable Volume (CV) and Carry
                                   Over Volume (COV) of that leg. The other leg will typically be referred to as the Pay Leg or Weak Leg. See also
                                   the 'Pay Leg' and 'Carry Over Volume' definitions.
 Team Commissions                  Once a Consultant accumulates at least 300 Pay Leg Volume (PLV), the Consultant will receive a percentage of
                                   their PLV based on their Paid-As Title. See also 'Carry Over Volume' and 'Pay Leg Volume'.
 Team Volume (TV)                  The sum total of the Personal Volume (PV) of all Consultants in your placement tree.



PLAN EFFECTIVE DATE: MAY 9, 2012
©2012 AKEA LLC                                                        AKEA PROSPERITY PLAN                                                     PAGE 7 OF 8
Document Revision History

                               Date                                            Description
                     December 23, 2010    Original document
                     January 6,2011       Revision
                     January 19, 2011     Weekly Pay Cycle section revised
                     January 21, 2011     Revised sections: 1b, 8, Definitions
                     February 8, 2011     Revised Section 8
                     April 6, 2011        Revised "Weekly Pay Schedule" section
                     May 31, 2011         Revised Founders' Club section; moved Turbo Bonus information into body of document
                     September 26, 2011   Added Pin Recognition Program
                                          General clarifications and clean up
                     May 9, 2012          Updated Carryover Volume Definition and Founders Club qualifications




PLAN EFFECTIVE DATE: MAY 9, 2012
©2012 AKEA LLC                                                  AKEA PROSPERITY PLAN                                            PAGE 8 OF 8

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Akea prosperity plan

  • 1. AKEA PROSPERITY PLAN EFFECTIVE MAY 9, 2012 900 RIDGEFIELD DR., SUITE 170 RALEIGH, NC 27609 TEL: 919.981.6110; FAX: 919.981.6111 PLAN EFFECTIVE DATE: MAY 9, 2012 WWW.AKEALIFE.COM ©2012 AKEA LLC AKEACARE@AKEALIFE.COM
  • 2. Akea Prosperity Plan The Akea Prosperity Plan provides you with many ways to earn both part time immediate income as well as long-term, residual income. Each week Akea pays out a guaranteed fifty percent (50%) of the total company Commissionable Volume (CV). This amount is paid to qualified Akea Independent Consultants in commissions and bonuses. Here is a summary of the ways you can receive compensation. Prosperity Plan Overview 1. Customers a. Retail Profit Quickly earn profits by selling Akea products to customers at retail price. You can sell directly or refer customers to your Akea replicated website to make their purchases. All retail volume is counted towards your Personal Volume (PV). b. Preferred Customer Bonus (PCB) Akea offers a Preferred Customer program that is unique and highly rewarding. Preferred Customers are afforded a significant discount for enrolling in a monthly autoship program. Active Consultants receive 40% in commissions on their Preferred Customers Commissionable Volume (CV). 20% of Preferred Customer Commissionable Volume (CV) is applied toward Personal Volume (PV), flows into the Team Volume (TV), and is used for all other Prosperity Plan calculations. Example: Your Preferred Customer purchases two cans of Essentials for $110/100 CV. You will receive a $40 PCB (40% of 100 CV). 20 CV is applied to your Personal Volume (PV) as well as the Team Volume (TV). 2. Fast Start Bonus (FSB) Earn 15% - 20% of the Commissionable Volume (CV) on the enrollment order of everyone you personally sponsor. The amount of the FSB is dependent on your Personal Volume (PV). • 100 PV = 20% FSB • 50 PV = 15% FSB 40% of the Commissionable Volume (CV) on FSB orders flows into the Team Volume (TV) and is used for all other Prosperity Plan calculations. Example: If an enrollment pack has 200 CV, you as the sponsor would receive $40 (if active at 100 PV). 80 CV is applied to Team Volume (TV). 3. Matching Fast Start Bonus (MFSB) It is important as an Akea Independent Consultant to help those whom you have personally sponsored. Akea will reward you with a special bonus for this effort called the Matching Fast Start Bonus. When one of your personally sponsored Consultants sponsors a new Akea Independent Consultant, you earn a 50% match of the FSB they receive. You must be at 100 PV to qualify for MFSB. Example: You sponsor Eric. Eric in turn sponsors Joyce. Joyce orders a 200 CV package to start her Akea business. Eric would receive a $40 FSB for Joyce's order. You would receive a $20 MFSB for Joyce's order which is 50% of Eric's FSB. This example assumes that you and Eric both qualify with 100 PV. If Eric only qualified with 50 PV and you qualified with 100 PV, Eric would receive $30 FSB and you would receive $15 MFSB. 4. Team Bonus and Team Leader Bonus a. Team Bonus (TB) Success in the Akea Prosperity Plan requires team work and duplication. The Team Bonus has been designed specifically to facilitate and reward you for these efforts. Simply put, enroll 2 who enroll 2 and duplicate! You earn the TB when you ( ) sponsor 2 ( ) who each sponsor 2 ( ) (based on personal sponsorship tree) within your first 4 full weeks of joining Akea. PLAN EFFECTIVE DATE: MAY 9, 2012 ©2012 AKEA LLC AKEA PROSPERITY PLAN PAGE 1 OF 8
  • 3. The amount the TB pays is dependent on your Personal Volume (PV). • 100 PV = $100 TB • 50 PV = $25TB Figure 1 Note: You can earn the TB only 1 time. Everyone (all 7) must be Active with at least 50 PV. b. Team Leader Bonus (TLB) The Team Leader Bonus rewards you for teaching the duplication process. You ( ) earn the TLB every time you help one of your personally sponsored consultants ( ) achieve the Team Bonus. The amount the TLB pays is dependent on your Personal Volume (PV). • 100 PV = $100 TLB • 50 PV = $25 TLB Figure 2 Note: There is no limit to how many times you can earn the TLB. You earn it every time one of your personally sponsored consultants achieves the TB. PLAN EFFECTIVE DATE: MAY 9, 2012 ©2012 AKEA LLC AKEA PROSPERITY PLAN PAGE 2 OF 8
  • 4. 5. Team Commissions The real potential of the Akea Prosperity Plan opens up once you begin to build a team and start earning Team Commissions. Team Commissions are a residual override paid on the team of Consultants in your placement tree. This organization, based on a "binary" (meaning 2), is comprised of two legs, your pay leg and your strong leg (the pay leg has the lesser amount of volume and the strong leg has the greater amount of volume). Those under you will include, but are not limited to, everyone you personally sponsored and those they sponsor. You, your sponsor, or anyone else above you in the placement genealogy may place Consultants in your organization in either one of your legs (known as spillover). Your Team Volume (TV) is the sum total of the Personal Volume (PV) of all Consultants in your placement tree. You are eligible to receive Team Commissions of 10-% to 20% (see Table 1 for details) once you are Active with 50 PV and qualified (personally sponsor someone on your left and right legs in your placement tree and they are each Active with at least 50 PV). Team Volume (TV) will accumulate and carry over from week to week provided you remain Active. When you accumulate at least 300 Pay Leg Volume (PLV) and Strong Leg volume, Team Commissions will be paid. Once paid, any leftover volume on your strong leg will carry over provided you remain Active. If you Figure 3 do not remain Active during a qualification period the volume on both the Pay Leg and Strong Leg will be reset to zero. Example: Everyone in Figure 3 has 100 PV this week. You have 700 TV on your right leg and 400 TV on your left leg. You receive a Team Commission of $40 (10% of the 400 Pay Leg Volume [PLV]). You may earn up to $25,000 per week in Team Commissions. Team Commissions Weekly Payout Earning Rank % Potential Consultant n/a n/a Associate (A) Sr. Associate (SA) 10% $1,500 Director (DIR) Sr. Director (SD) 12% $2,000 Executive Director (ED) 14% $2,500 Regional Director (RD) 16% $5,000 National Marketing Director (NMD) 18% $10,000 Global Marketing Director (GMD) 20% $25,000 Table 1 6. Matching Bonus (MB) You can earn a Matching Bonus on any Akea Consultant you personally sponsored, their personally sponsored Consultants, and so on for up to 5 generations—no matter which placement leg they're in. The MB pays up to 20% of each generation's Team Commissions. Matching Bonus: Weekly earning Paid on Generations of Senior Director and Higher potential per # Generations Paid 1 2 3 4 5 individual being matched Executive Director (ED) 20% $500 Regional Director (RD) 20% 20% $1,500 National Marketing Director (NMD) 20% 20% 20% $3,000 Global Marketing Director (GMD) 20% 20% 20% 20% 20% $5,000 Table 2 The MB is determined by generations in your personal sponsorship tree. A Senior Director Generation is the basis upon which the Matching Bonus is paid. The first Senior Director Generation is the first Paid-As Senior Director or higher encountered in PLAN EFFECTIVE DATE: MAY 9, 2012 ©2012 AKEA LLC AKEA PROSPERITY PLAN PAGE 3 OF 8
  • 5. each leg in your personal sponsorship tree. The next Paid-As Senior Directors or higher encountered below the first ones in the leg would be considered a 2nd Senior Director Generation. 7. Leadership Pool Akea guarantees a weekly payout of 50% of total company Commissionable Volume (CV). The Leadership Pool is based on a floating percentage and is distributed weekly. The percentage is determined after all other commissions and bonuses in the Prosperity Plan are calculated and is funded with whatever is available up to the 50%. Those who wish to participate must qualify by being Paid-As a Regional Director or higher. Each participant will receive a prorated share of the pool based on his or her Pay Leg Volume (PLV) compared to the total combined Pay Leg Volume of all those participating in the pool that week. For example, if the total combined Pay Leg Volume (PLV) of all those participating in the pool equals $200,000 in the week, and Sam has a Pay Leg Volume (PLV) of $4,000, he would receive 2% of the Leadership Pool that week. 8. Expense Allowance Paid-As Regional Directors and above are eligible to receive the following Expense Allowance for use in building their Akea business. • Regional Director ......................... $ 500/month • National Marketing Director......... $ 750/month • Global Marketing Director ............ $1,000/month Expense Allowance will be paid weekly based upon the following formula: Weekly Expense Allowance = Month Expense Allowance * 12/52 Note: To receive the Expense Allowance you must be qualified at applicable title for 6 out of 8 rolling weeks. 9. Founders' Club The Founders' Club will be an exclusive club reserved for Akea's top performing Consultants. The Founders' Club will be limited to 25 members who are eligible to be Paid As Founders. Qualifications for the Founders' Club are as follows: • The first 15 Founders' Club Members qualified as of March 18, 2012. • The next 5 Founders’ Club Members will qualify by being Paid As Regional Director (RD) for at least 4 out of 8 rolling weeks AND have a minimum of 150 active Consultants in their Pay Leg in each qualifying week. • Akea will set the Founders' Club Qualifications for the final 5 spots at its sole discretion. • The granting of Founders’ Club Membership is subject to review and approval by Akea. • A Charter Member is a Founders' Club Member who qualified by the commission week ending July 3, 2011. After the initial qualification for the Founders' Club, a Consultant will be "Paid-As a Founder" when the Consultant's Paid-As Title is at or above his/her Founders' Club Qualifications Title in a given commission period. Founders' Club Pool • Each rolling 4 weeks that a new company record for Commissionable Volume (CV) is achieved, the Founders' Club Pool will be funded with 10% of the difference between the old and the new record, up to 3% of the company's Commissionable Volume (CV) for that commission period. If no Founder qualifies for this pool, the money is flushed (no carryover pool amount). • A Founders' Club member will receive a portion of the pool if he/she is qualified to be Paid-As a Founder in that commission period. The Consultant's individual percentage of the weekly Founders' Club Pool is based on his/her Personal Sponsorship Tree Volume (PSTV) compared to the total of all qualified Founders' PSTV. • Once a Founder, if a Consultant is not qualified to be Paid-As a Founder at least four times in a 26 week rolling period, he/she permanently loses his/her ability to participate in the Founders' pool but does not lose the status as a Founder (for recognition). • In any week where the Founders' Club Pool is paid out, no individual recipient may receive more than 25% of the pool. Any unpaid pool amounts will not be paid out. • Founders' Club Pool volume is USA only. PLAN EFFECTIVE DATE: MAY 9, 2012 ©2012 AKEA LLC AKEA PROSPERITY PLAN PAGE 4 OF 8
  • 6. Rank Qualifications Weekly Pay Leg Volume Title PV Qualifications (PLV) Consultant 50 Application Associate (A) 50 2 Active Personally Sponsored Consultants n/a (1 L/1 R Placement Tree) Sr. Associate (SA) 50 2 Active Personally Sponsored Consultants 300 (1 L/1 R Placement Tree) Director (DIR) 50 2 Active Personally Sponsored Consultants 500 (1 L/1 R Placement Tree) Sr. Director (SD) 100 2 Active Personally Sponsored Consultants 1,000 (1 L/1 R Placement Tree) 2 Qualified SA Legs (Personal Sponsorship Tree) Executive Director (ED) 100 2 Active Personally Sponsored Consultants 2,500 (1 L/1 R Placement Tree) 3 Qualified SA Legs (Personal Sponsorship Tree) Regional Director (RD) 100 2 Active Personally Sponsored Consultants 5,000 (1 L/1 R Placement Tree) 3 Qualified DIR Legs (Personal Sponsorship Tree) 1 1 National Marketing Director (NMD) 100 2 Active Personally Sponsored Consultants 10,000 (1 L/1 R Placement Tree) 3 Qualified SD Legs (Personal Sponsorship Tree) Global Marketing Director (GMD) 2 100 2 Active Personally Sponsored Consultants 25,0002 (1 L/1 R Placement Tree) 3 Qualified ED Legs (Personal Sponsorship Tree) 10. Pin Recognition Program Active Consultants who achieve the Rank of Director and higher will be awarded one Akea logo pin to recognize their accomplishments. Director Senior Director Executive Director Regional Director National Marketing Global Marketing Director Director Weekly Pay Cycle All commissions and bonuses will be paid weekly. The weekly commission period runs from Monday at 12:01am Eastern time to Sunday at midnight Eastern time. Commissions for period X will be processed the Thursday following the end of the commission period (i.e., 4 days later). Funds will be available as follows: • Paycards: Funds will appear on Akea paycards on the same day; i.e., Thursday • Checks: Checks will be mailed on Thursday via US Postal Service. • Direct Deposit (ACH): Direct deposits will appear in your bank account within one business day, typically on Friday, provided Thursday and/or Friday are not bank holidays. 1 NMD Title requires 10,000 Pay Leg Volume (PLV) for 2 consecutive weeks. 2 GMD Title requires 25,000 Pay Leg Volume (PLV) for 3 consecutive weeks. PLAN EFFECTIVE DATE: MAY 9, 2012 ©2012 AKEA LLC AKEA PROSPERITY PLAN PAGE 5 OF 8
  • 7. Prosperity Plan Guarantee Akea will payout 50% of company total Commissionable Volume (CV) – GUARANTEED! The following rules will be used to guarantee the 50% payout. a. Leadership Pool: Will be funded with whatever is available after all other commissions and bonuses have been paid up to the 50%. The Leadership Pool will be funded with a minimum of 3% of total company Commissionable Volume (CV). b. Matching Bonus: Will be reduced proportionally if required to keep the overall payout at 50%, however this will not be reduced below 3% of total company Commissionable Volume (CV). c. Team Commissions: Will be reduced proportionally for Paid as Senior Directors and higher if required to keep the overall payout at 50%. Team Commissions will not be reduced below 10% for any rank. PLAN EFFECTIVE DATE: MAY 9, 2012 ©2012 AKEA LLC AKEA PROSPERITY PLAN PAGE 6 OF 8
  • 8. Definitions Active A Consultant must maintain at least 50 Personal Volume (PV) monthly to be considered Active. If a Consultant is not active, he/she receives no commissions or bonuses. 100 PV is required monthly to be Paid-As a Senior Director or higher. Carry Over Volume Excess or unused Left and/or Right Leg volume is called Carry Over Volume (COV). This occurs when the Team (COV) Commission threshold of 300 PLV is achieved in the weaker leg but there is additional volume in the stronger leg on which the distributor is not paid that week. Carry Over Volume will also occur when the Pay Leg is less than 300 PLV and both legs will accrue Carry Over Volume to the next week. The Commissionable Volume left over at the end of the week in either or both Placement Tree Legs is carried over to the next week provided the Consultant is Active. If a Consultant fails to meet the minimum monthly Active requirement then all Positive COV will be flushed in both legs. When the Team Commissions are paid on the Pay Leg Volume (PLV), an equal amount of the PLV will be subtracted from the Strong Leg Commissionable Volume for Carry Over purposes. Carry over volume will accrue up to 100,000 (one hundred thousand) CV. Commissionable Each inventory item has a Commissionable Volume (CV) assigned to it. All commission percentages apply to Volume (CV) this volume. Pay Leg Volume (PLV) is based on CV. Pay Leg This is the Leg (Placement Tree) with the lesser of total Commissionable Volume (CV) for a Consultant. This will include the Commissionable Volume (CV) and Carry Over Volume (COV) of that Leg. The other leg will be referred to as the Strong Leg. See also the 'Strong Leg' definition. Pay Leg Volume (PLV) The Commissionable Volume (CV) of everyone in a Consultant's Pay Leg. In addition, Personal Volume (PV) in excess of 100 PV per week will be added to the Pay Leg Volume (PLV). Personal Sponsorship Your personal sponsorship tree starts with the people you personally sponsor and grows with the ones they Tree sponsor. Personal Sponsorship The Commissionable Volume (CV) of everyone in a Consultant's Personal Sponsorship Tree. Tree Volume (PSTV) Personal Volume (PV) The total Commissionable Volume (CV) sold and purchased by a Consultant and his/her personal Customers and Preferred Customers in the current week. Any Personal Volume (PV) in excess of 100 PV will automatically be included in the Consultant's Pay Leg Volume (PLV) that week. Placement Tree The genealogy based on a "binary" (meaning 2) that has a Left and Right leg on which the Team Commissions are based. One Leg in the Placement Tree will be the Pay Leg because its Commissionable Volume (CV) will be less than the Strong Leg. The Placement Tree is used ONLY for the calculation of the Pay Leg Volume (PLV) and the Team Commissions. It is NOT used for the leg requirements of each title in the career path. One must have 1 Active personal recruit on the left and 1 Active personal recruit on the right of the Placement Tree to be eligible for Team Commissions. Preferred Customer Preferred Customers are customers who have signed up for Autoship. 20% of the Commissionable Volume (CV) from a Preferred Customer will be applied to the Personal Volume (PV) of the sponsoring Consultant (not 100%). 20% of PC CV will flow into Team Volume (TV). Requalification Policy Badge titles for Executive Director and higher are retained for 52 weeks following any week in which you qualify. For example, if you qualify for your title in the first week of June, you will keep your badge title until the last week of May of next year (assuming 52 weeks). If, prior to the first week of June of next year, you qualify again in the second week of September, you will keep your title until the first week of September of next year (assuming 52 weeks have passed). Title demotions will occur in the 53rd week without qualification. The title that you will be demoted to in that 53rd week is the title that you qualify for in that period. Sr. Director Generation A Senior Director Generation is the basis upon which the Matching Bonus is paid. The first Senior Director Generation is the first Paid-As Senior Director encountered in each leg in a Consultant's personal sponsorship tree. The next Paid-As Senior Directors encountered below the first ones in the leg would be considered a 2nd Senior Director Generation. There will often be Consultants who are not Paid-As Senior Directors or above between an upline Consultant and a downline Senior Director. These intervening Consultants are not considered an SD Generation because their Paid-As Title is less than Senior Director. The Senior Director Generation is always based on the Paid-As Title. Strong Leg This is the Leg (Placement Tree) with the greater of total Commissionable Volume (CV) for a Consultant compared to the lesser or Pay Leg that week. This will include the Commissionable Volume (CV) and Carry Over Volume (COV) of that leg. The other leg will typically be referred to as the Pay Leg or Weak Leg. See also the 'Pay Leg' and 'Carry Over Volume' definitions. Team Commissions Once a Consultant accumulates at least 300 Pay Leg Volume (PLV), the Consultant will receive a percentage of their PLV based on their Paid-As Title. See also 'Carry Over Volume' and 'Pay Leg Volume'. Team Volume (TV) The sum total of the Personal Volume (PV) of all Consultants in your placement tree. PLAN EFFECTIVE DATE: MAY 9, 2012 ©2012 AKEA LLC AKEA PROSPERITY PLAN PAGE 7 OF 8
  • 9. Document Revision History Date Description December 23, 2010 Original document January 6,2011 Revision January 19, 2011 Weekly Pay Cycle section revised January 21, 2011 Revised sections: 1b, 8, Definitions February 8, 2011 Revised Section 8 April 6, 2011 Revised "Weekly Pay Schedule" section May 31, 2011 Revised Founders' Club section; moved Turbo Bonus information into body of document September 26, 2011 Added Pin Recognition Program General clarifications and clean up May 9, 2012 Updated Carryover Volume Definition and Founders Club qualifications PLAN EFFECTIVE DATE: MAY 9, 2012 ©2012 AKEA LLC AKEA PROSPERITY PLAN PAGE 8 OF 8