YOUR WAY TO A DEBT-FREE LIFESTYLE

Morganics not only offers advanced products, but also provides the tools and support for you to start building your dreams. Our innovative Compensation Plan is designed to reward all who participate at whatever level they choose.

Since our program is built upon retail sales to the ultimate consumer, we support and encourage all distributors to include retail sales as a regular part of their monthly volume.

RETAIL OPPORTUNITY
RETAIL - The establishing of a strong, loyal customer base will provide a solid foundation for the growth of your business. Distributors have the opportunity to develop and service their own customers, plus they have the option to register them into the Preferred Customer Program.

PREFERRED CUSTOMER - With an initial retail sale, or subsequent retail sale, a Distributor may register their customer(s) with the Company. The customer simply completes the PREFERRED CUSTOMER APPLICATION FORM and submits this to the Company with an attached retail order. There is absolutely no fee or obligation on the part of the customer. A PREFERRED CUSTOMER then has the ability to order at anytime and in any quantity.

BENEFITS:
The PREFERRED CUSTOMER will immediately enjoy a 10% discount off the suggested retail price and participate in the CRS Plan (Combined Retail Services).

A PREFERRED CUSTOMER now orders directly from the Company, selecting any product(s) of their choice and having them shipped directly to them.

The PREFERRED CUSTOMER will receive product mailings from the Company, participate in promotion, receive newsletters and be able to enjoy product specials.

DISTRIBUTOR - Great Beginnings...
Complete a DISTRIBUTOR APPLICATION AND AGREEMENT FORM available from your Sponsor. Fax or mail the completed application to Morganics.

You now have the option of sending a product order with your completed Distributor Application. This will save time in shipping your product to you.

In order to provide you with a fast start, Morganics has prepared a spectacular Living Systems Career Pack which contains products, sales aids, literature and publications - all designed to help you build your business and realize your dreams. Plus, you will enjoy substantial savings when you purchase the Career Pack. See current price list for details.

YOUR BENEFITS:
You may choose to participate in the MORGANICS ADVANTAGE-SHIP PROGRAM. This authorizes Morganics to ship pre-selected products to you each month. All shipments are sent on or before the 12th of each month. This program also qualifies the Distributor for an additional 2% Incentive Bonus.

Now you can purchase products of your choice directly from the Company, in any quantities you wish and receive a 30% discount.

You will receive a 20% retail profit on the purchases of all your Preferred Customers and continue to receive a 30% profit on all retail sales.

You may start to sponsor others who will be part of your growing business and begin qualifying to receive commissions.

Commissions paid on Distributors you sponsor are based upon a value amount assigned to each product, which is referred to as Bonus Volume (BV). No commissions are paid on Personal Bonus Volume (PBV), but are paid on Group Bonus Volume (GBV). It is on Bonus Volume (BV) that all position advancements and qualifying requirements are calculated.

Each calendar month when you have a minimum of $50.00 Personal Bonus Volume (PBV), you will receive 8% commission on your Group Bonus Volume two levels down. Distributors you personally sponsor are in your 1st Level. Those Distributors, personally sponsored by your 1st Level, are in your 2nd level and so on.

BRONZE ASSOCIATE
In a calendar month, a Bronze Associate is one who has personally sponsored three Qualified Distributors or above, each doing a minimum of $50.00 PBV, thus establishing three separate legs of their business. In each calendar month that this occurs, and the Bronze Associate has a minimum of $100.00 PBV, the Bronze Associate will receive 8% through levels one and two, and 10% on level three of all qualified Distributors or above.

SILVER ASSOCIATE
In a calendar month, a Silver Associate is one who has has a minimum of five Qualified Bronze Associates or above, each from a different leg. In each calendar month that this occurs, and the Silver Associate has a minimum of $100.00 PBV, the Silver Associate will receive, in addition to the Bronze Associate, 3% on level four.

GOLD ASSOCIATE
In a calendar month, a Gold Associate is one who has a minimum of five Qualified Silver Associates or above, each from a different leg.In each calendar month that this occurs, and the Gold Associate has a minimum of $100.00 PBV, the Gold Associate will receive, in addition to the Silver Associate, 3% on level five.

PLATINUM ASSOCIATE
In a calendar month, a Platinum Associate is one who has a minimum of six Qualified Gold Associates or above, each from a different leg. In each calendar month that this occurs, and the Platinum Associate has a minimum of $100.00 PBV, the Platinum Associate will receive, in addition to the Gold Associate, 3% on level six.

INFINITY BONUSES
In a calendar month, a Qualified Platinum associate who also has GBV of $5000.00 through six qualified levels, will be paid 2% to Infinity, or until there is another Qualified Platinum Associate having met the above requirements in that leg.

When this occurs, you will receive 2% to Infinity on all legs of this Qualified Platinum Associate down to the next Qualified Platinum Associate.

When there is yet another Qualified Platinum Associate below in that same leg, you will receive 2% on all legs of this Qualified Platinum Associate down to the next Qualified Platinum Associate in the same leg, and are paid from your FIRST LEVEL down.

INCENTIVE BONUSES
In any calendar month, Distributors and above who participate in the Advantage Ship Program will qualify for a 2% Incentive Bonus. The Incentive Bonus is paid in addition to the stated commissions paid on Levels One through Six.

PREMIER AWARDS - POOL ONE - 1%
In a calendar month, the five Distributors or above who have the highest Group Bonus Volume of $3000.00 or more, will participate proportionately in a cash pool funded by 1% of the current month's Bonus Volume of Morganics, Inc.

PREMIER AWARDS - POOL TWO - 1%
In a calendar quarter, the five Associates who have the highest Commission and Bonus checks for the quarter, will share proportionately in a cash pool funded by 1% of that current quarter's Bonus Volume of Morganics, Inc. To qualify, you must have a Commission and Bonus check of a minimum of $3000.00 for each month of the calendar quarter.

Note: The Company reserves the right to review the above Premier Awards and they are subject to modifications at any time. The Premier Awards will take effect May 1st, 1999.

DISTRIBUTOR - The term Distributor refers to all persons at all positions or status in the Morganics Marketing Plan.

QUALIFIED - In a calendar month, those who have met certain qualifications are referred to as Qualified.

STATUS - Distributor status of Bronze, Silver, Gold and Platinum once attained will not change*, however, Commissions and Bonuses are determined by the qualifications in a calendar month. (*The Distributor status is ultimately governed by the Morganics Policies and Procedures.)

WHOLESALE - The amount Distributors and above pay for products. The wholesale discount is 30% off the Suggested Retail.

BONUS VOLUME (BV) - The product value on which commissions and bonuses are paid. It is on this product value that all position advancements and qualifying requirements are calculated.

PERSONAL BONUS VOLUME (PBV) - All products purchased by you and your Preferred Customers.

GROUP BONUS VOLUME (GBV) - Group Bonus Volume is the total Personal Bonus Volume of all Distributors and above, and their Preferred Customers sponsored by you and all who are sponsored by them, and so forth to infinity. It is on this volume that commissions are paid based on your qualification in a calendar month.

COMPRESSION - Commissions are paid on your six levels of Distributors and above who meet the minimum monthly requirements to receive commissions. For commission purposes only, if a Distributor or above on your second level does not meet the minimum requirements, your third level volume compresses up to your second level, your fourth level compresses up to your third level, and so on.