DSGearUSA

Agent Compensation and Promotion Guide Lines

V: 8-01-12

Agent Compensation:
Level 1 Sales Associate 2 Team Leader 3 Group Leader 4 Sales Manager **Bonus Class 1 10% 20% 25% 30% 3% Compensation Class 2 10% 15% 18% 20% 2% Class 3 10% 12% 14% 15% 1% Class 4 10% 11% 12% 13% 1% Class 5 See Note***

1. An agent can NOT override/receive commission from anyone on the same level as they are. Example: A Level 1 Associate can not receive an override commission off of an agent that they have hired if they are at the same level. They must be one level or higher above that agent in order to receive an override commission. 2. The amount of override that you will receive will be the difference between your compensation percent and their compensation percent. See examples below: a. Say you are a Team Leader and: i. YOU make a personal sale; you will receive from a Class 1 sales 20%. ii. Your Sales Associate directly under you makes a Class 1 sale, YOU will receive the difference between your percent and their percent, in this case you will receive 10% and the Sales associate will also receive 10%. b. Say you are a Group Leader and: i. You have a Team Leader that has a Sales Associate that makes a Class 1 sell. The Sales Associate will receive 10%, the Team Leader will receive 10% and YOU as a Group Leader will receive 5% off that sell. ii. If your Team leader makes the sale, then you will receive 5% off their sell. iii. I f you have a direct Sales Associate, that reports directly to you, and they make a Class 1 sell, you will receive 15% override off their sale and they will receive their 10%.

3. Item Numbers that start with the follow letter(s) will be paid at Class 1 Compensation. This has changed based on new products, see change below. Compensation will now be based on markup of each individual item. This will allow DSG to be most competitive in the market place and will ultimately result in more money for the sales force. Commission payout will be made on or around the 1st and 15th of each month, after the customer has received their merchandise. ***Compensation for Class 5 is a special class, any items not marked on the agents compensation/commission list will fall under the Class 5 compensation. The compensation for these levels will vary based on the commission/profit made by DSGearUSA. As an example, if a product that is placed, referred or an alliance with DSGearUSA only pays a percent off the total sale, then DSGearUSA will only pay a commission on the profit/commission paid to DSGearUSA. Example: If an item was referred by DSGearUSA sold for $3,000 and DSGearUSA was paid 10% referral fee for the sale of that item, this would result in a $300 referral fee to DSGearUSA. As a Class 5 item, the commission/compensation to the DSGearUSA agents would be paid off the $300 NOT the total sale of $3,000. ** Bonus is awarded to Level 4 Sales Managers only. The Bonus will be awarded to Sales Managers who have created another level 4 Sales Manager. This Bonus will be based off the sales off the promoted Sales Manager and your team.

Promotion Guide Lines

From: 1 (ISA) Sales Associate To: 2 Team Leader Hire 3 new ISAs. AND You and your team sell total of $250 in one calendar month. You or your team hires 6 new ISAs. AND You produce 1 level 2 Team Leader. AND You and your team sell total of $500 in one calendar month.

2 Team Leader

3 Group Leader

3 Group Leader

4 Sales Manager

You or your team hires 12 new ISAs. AND You produce 3 new Level 2 Team Leaders. AND You and your team sell total of $800 in one calendar month. You produce a Level Sales Manager. AND You and your team sell total of $1,200 in one calendar month.

4 Sales Manager

Bonus

NOTE: The promotion and compensation guide lines are subject to change and will take effect on the 1st day of the month, two months after being updated and posted. DSGearUSA is a new company and we are making adjustment to the compensation and guide lines to help better your future at DSGearUSA. You can only move up one level at a time.