Compensation Plan Summary Direct Sales Commission LGN pays all active Independent Associates a Direct Sales Commission (DSC) for selling LGN International Memberships to retail customers. An LGN Independent Associate becomes qualified to earn direct sales commissions after they have activated their LGN Business Center by selling two LGN International Memberships. Qualified LGN Independent Associates will earn a $30.00 USD commission on all direct LGN International Memberships sales. *The following requirements are mandatory to receive your DSC. 1. Sales Criteria: LGN International Independent Associate must have an activated business center by making a one-time qualification of two  membership sales. 2. Current Account Status: The Independent Associate must be active by paying their LGN International monthly membership fee. Weekly Cycle Bonus LGN International Independent Associates earn Weekly Cycle Bonuses based on membership sales. Each time 6 membership sales are made by an Independent Associate directly or indirectly that fills a matrix, a cycle is created. When a cycle is created, the following bonuses are generated. $600.00 USD to Matrix Owner $125.00 USD to Tier 1 $37.00 USD to Tier 2 $15.00 USD to Tier 3 *In order to qualify to receive a cycle bonus the following requirements are mandatory: 1. Sales Criteria: LGN International Independent Associate must have an activated business center by making a onetime qualification of two  membership sales. 2. Current Account Status: Pay your monthly LGN International membership fee every month. *LGN International will hold Weekly Cycle Bonus commissions in Pending if you are not an active member due to the above mentioned requirements. After eight  pay periods of being inactive or unqualified, all pending weekly cycle bonus commissions will be irrevocably forfeited. Monthly Residual Bonus An LGN International Independent Associate at the District Manager rank or higher can earn a Monthly Residual Bonus based on the monthly billing generated by their entire matrix organization. The Independent Associate accumulates Sales Credits based on the monthly fees each customer pays. For every 6 ACTIVE Independent Associates a member has in their entire organization to infinity, a cycle will be created. Independent Associates will receive a bonus based on their eligibility level. Product Fee Sales Credit LGN International Monthly Fee $25.95 1 One cycle is created for 6 Sales Credits generated from an Independent Associates matrix organization. Each monthly bonus pays up to $10.00 USD per cycle depending on the Independent Associates Rank. District Manager $2.00 USD per Cycle Regional Manager $5.00 USD per cycle Executive Manager $7.00 USD per Cycle International Manager $10.00 USD per Cycle Example: You are an International Manager with LGN International. Your entire organization consists of 6000 Memberships. Of these 6000 memberships, 5000 are ACTIVELY paying their monthly LGN International Membership fee of $25.95 *Note: Commissions are not paid on the sale of Business Centers. Commissions are only paid on the monthly membership fee portion of your total monthly fee. No commissions will be paid on your Business Center portion of the monthly fee. 5000 Sales Credits / 6 (amount it takes to create a cycle) = 833 Cycles 833 Cycles x $10 per Cycle Bonus = $8333.00 USD Monthly Residual Bonus All Bonuses Have a Maximum Payout Each Month District Manager $500.00 USD Regional Manager $2,000.00 USD Executive Manager $10,000.00 USD International Manager $25,000.00 USD Monthly Residual Bonuses are placed in pending on the 15th of the month for the prior month that the bonus was earned and will be paid on the next regular commission payout following that date. (For Example: The February Monthly Residual Bonus will be paid in March) *In order to be eligible to receive a monthly residual bonus, the following requirements are mandatory: 1. The Independent Associate must be active by paying their LGN International monthly membership fee. 2. You must have reached the status of District Manager rank or higher. 3. You must have at least 12 DIRECT ACTIVE members in your personal direct organization. A direct active member is a member that is paying their monthly LGN International membership fee that you PERSONALLY REFERRED. 4. You must personally make a minimum of one  LGN International Membership sale in the month in which the monthly residual bonus is earned. *ALL requirements listed above must be met in order to receive the monthly residual bonus. If all requirements are not met, the bonus will not be generated. LGN International Lifestyle Bonus LGN International Independent Associates who are District Manager rank and higher are eligible to earn a monthly lifestyle bonus. Lifestyle bonuses are placed in pending on the 15th of the month following when the bonus was earned and will be paid on the next regular commission payout following that date. (For Example: The February Lifestyle Bonus will be paid in March) When you generate: 1 Weekly Cycle Bonus per Week (or 4 cycles within a calendar month total) - You will receive a life-style bonus of $250.00 USD for the month of qualification. 2 Weekly Cycle Bonuses Per Week (or 8 cycles within a calendar month total) - You will receive a life-style bonus of $500.00 USD for the month of qualification. 3 Weekly Cycle Bonuses Per Week (or 12 cycles within a calendar month total) - You will receive a life-style bonus of $750.00 USD for the month of qualification. 4 Weekly Cycle Bonuses Per Week (or 16 cycles within a calendar month total) - You will receive a life-style bonus of $1,200.00 USD for the month of qualification. *In order to receive the LGN Lifestyle Bonus, the following requirements are mandatory: 1. The Independent Associate must be a District Manager rank or higher. 2. The Independent Associate must be active by paying their LGN International monthly membership fee. 3. The Independent Associate must have one  LGN International Membership sale for the month in which the bonus has been reached. LGN Recognition Program Manager 1 Cycle and 2 Personal Sales District Manager 2 Cycles and 6 Personal Sales Regional Manager 5 Cycles and 18 Personal Sales Executive Manager 8 Cycles and 30 Personal Sales International Manager 12 Cycles and 50 Personal Sales ** LGN International will never pay more than 65% of total weekly or monthly sales into the commission structure. This is to ensure the long- term viability of the company. If a customer buys an LGN International Membership, the direct commission is paid to the enroller. No commissions are paid for recruiting new representatives. A membership purchase is not required to become an Independent Associate. LGN International makes NO GUARANTEES of income. Results depend solely on the efforts of each individual.