10.

BUSINESS PROGRAM
10.1 To Achieve Commission
1. You have to purchase a First Product and subsequently Regular Product each month. 2. During the commission calcula>on period, amongst the Members you have directly introduced to the Company, ONE of them must be an AP. 3. You have fullled the requirements to be eligible for commission.

10.2 Point Expira9on and Carry Over

1. Points you have accumulated from your own purchase and your downline groups purchase will never expire as long as you maintain your AP status. 2. If you and your directly introduced IPs maintain AP status, then points from your en>re Group can be aNributed to you. However, there are limits on the amount of points you can carry over.

10.3 AP Period
AP (Ac>ve Producer) period starts from the day an IP buys the First Product or Regular Product in any month, and ends the day before the Registra>on Date in the next month. When new members join, the registra>on date will depend on the joining date: - If the new members joining date is any day from the 1st to the 15th, date of registra>on will automa>cally be set on the 16th of the month. - If the new members joining date is any day from the 16th to the end of any day, date of registra>on will automa>cally be set on the 1st of the following month. You
This month Following month

16th

Sign-Up Date

10th

AP Period

15th

If you sign-up as a Member on the 10th, your Registration Date shall automatically be set to the 16th. Your AP period shall continue until the 15th of the following month. Next month End of following Month

You

1st

Sign-Up Date

AP Period

30th /31st

17th

If you sign-up as a Member on the 17th, your Registration Date shall automatically be set to 1st of the next month. Your AP period shall continue until the end the following month.

10.4 A Unique Network Marke9ng System

H&H is a network marketing company with a unique

BINARY

and

UNI-LEVEL

system.

Automa9c Placement

Posi>on placement is arranged automa>cally by our computer system.

Our computer system will automatically position new Members to the Left or Right lines. Placements will be given priority to the line with less people. But when both lines have the same number of Members priority will be given to the Left line.

L Line
(Left Group)

(Right Group)

R Line

Automatic Placement Example

A C D E Your Left Line (Left Group) has a Member A who has introduced 3 people (C, D, E). These people will be placed according to the below diagram.

1 3 5

You
4

2 6

L Line
(Left Group)
14 A C E D

(Right Group)

R Line

11

13

12

10

Designated Posi9oning

You can designate the posi>oning of a new recruit under a Supporter. However, you will NOT be able to designate whether the new recruit will be placed under the Left or Right Line of the Supporter
If you allow the Computer System to automatically place the new Recruit. This is where B will be placed.

By assigning a Supporter to a new recruit, you will be able to designate specific positioning of the new recruit under your Group.

New Recruit B A B

If you designate Ms. A as the Supporter. Mr. B will be placed in this position instead.

10.5 Points for Overseas Members

An AP will receive 80% of the Points for each purchase made by an overseas Member. Please see the following examples: 1. You are a USA member, and you have introduced a new Japan member, who purchased 10,000P worth of products. Since you are the Sponsor of this new member, you will receive 8,000P. 2. You are a USA member, and you have introduced a new Korea member, who purchased 20,000P worth of products. Since you are the Sponsor of this new member, you will receive 16,000P. 3. You are a Hong Kong member, and you have introduced a new USA member, who purchased 35,000P worth of products. Since you are the Sponsor of this new member, you will receive 28,000P.

10.6 Registra9on Date, Commission Closing Date and Payment Date

If you sign-up as a member during 1st15th of the month 16th end of the month Registration Date 16th of the month 1st of the following month Closing Date to maintain AP eligibility 15th of the month End of the month Pay Date 15th & End of the month 15th & End of the month

10.7 Commission Amount and Handling Fee

There is a Handling Fee for each commission check based on the amount of commission paid. Payment of commission starts when commission amount reaches $30. The Handling Fee associated is listed in the below table:
Commission Amount $29 or below $30 to $299 $300 or above Handling Fee 0 $4 $10 Note The commission will be accumulated un>l the amount reaches above $30

10.8 Sponsor Bonus

If you are an AP, you will receive this commission whenever you introduce a new member who purchases products.

POINT 1

If the new member purchases 1 pack of product (10,000P). If the new member purchases 1 Enterprise Pack (20,000P).

You will receive

$20 $30

You will receive

If the new member purchases 1 Annual Pack (10,000P X 12 months) + 1 FREE PACK

$100

You will receive

Sponsor Bonus Star9ng Dash Campaign (Limited Time Only)

From July to December 2012, when the number of new members you introduce reaches an odd number, you will receive this addi>onal bonus (in pink).

$20 $30
For Example:

$20 $30

$20 $20 $30 $30 $30 $30

$20 $30

$20 $20 $30 $30 $30 $30

$20 $30

$20 + $20 +

+ $30 +

Achieved 4

$190

10.9 Basic Bonus

Commission depends on products purchased (Points accumulated) on the L and R line groups. When the line with fewer points, either the L or R Line, reaches a commission eligible level, you will receive commission. Depending on the number of people you introduced to the Company, there are 3 types of Points clearing schemes.

L line 10,000 10,000 10,000 30,000P You

R line 10,000 10,000 10,000 10,000 40,000P

The line with less points
Basic Bonus Chart

30,000P

Referring to the Chart You will receive $40 commission

L line 20K P 50K P 100K P 150K P 200K P 250K P 270K P 300K P 350K P 400K P 450K P 500K P

R Line 20K P 50K P 100K P 150K P 200K P 250K P 270K P 300K P 350K P 400K P 450K P 500K P

$ $40 $100 $200 $300 $400 $500 $540 $600 $700 $800 $900 $1000

3 Types of Basic Bonus Commission

L line 20K P 50K P 100K P 150K P 200K P 250K P 270K P 300K P 350K P 400K P 450K P 500K P R Line 20K P 50K P 100K P 150K P 200K P 250K P 270K P 300K P 350K P 400K P 450K P 500K P $ $40 $100 $200 $300 $400 $500 $540 $600 $700 $800 $900 $1000 Each Day up to $1000 Unit Clearing (Twice a day) 250,000 P X 2 = 500,000 P
Half Cycle Directly Introduced 1 AP Full Cycle Directly Introduced 2 APs Double Cycle Directly Introduced 3 APs or more

Each day up to $200

Cycle Clearing Once a day 100,000 P

Each Day up to $500

Cycle Clearing Once a day) 250,000 P

What is a Full Cycle?

Requirements

The L and R lines have both accumulated at least 250,000 points.

You and 2 of your directly introduced members are both APs.

POINT 1

When both lines have accumulated 250,000 points, 1 cycle will be cleared (250,000 points deducted).

POINT 2

You can achieve a maximum of 1 cycle a day per position.

POINT 3

Points exceeding 250,000 will be carried over. There is no limit set on carry-over points.

L line

R line

250,000P

You

250,000P

When both the L and R lines have accumulated at least 250,000 points.

$500
10K 10K 10K 10K

1 Cycle clearing will occur that day Points that exceeded 250,000P will be carried over
10K 10K 10K 10K

1 Cycle Cleared

The next cycle will begin

What is a Double cycle?

Requirements

When you achieve TWO Full cycles.

You and 3 of your directly introduced members are both APs.

POINT 1

When both lines have accumulated 500,000 points, 250,000P 2 cycles will be cleared (500,000 points deducted).

POINT 2

You can achieve a maximum of 2 cycles a day per position.

POINT 3

Points exceeding 500,000 will be carried over. There is no limit set on carry-over points.

L line

R line

250,000P 250,000P You 250,000 the L and R lines have accumulated at least 250,000 When both 500,000 points. Points Points
$1000
2 Cycle clearings will occur that day

2 Cycles Cleared

The Next Cycle will begin

What is a Half Cycle?

Requirements

The L and R lines have both accumulated at least 100,000 points.

You and one of your directly introduced members are both APs.

POINT 1

When both lines have accumulated 100,000 points, Half Cycle will be cleared (100,000 points deducted).

You can achieve a Half Cycle once a day.

POINT 2

POINT 3

Points exceeding 100,000 will be carried over. There is no limit set on carry-over points.
R line

L line

100,000P

You

100,000P

When both the L and R lines have accumulated at least 100,000 points.

$200
Half cycle clearing will occur that day

1 Half Cycle Cleared

The next cycle will begin

Basic Bonus Calcula9on Examples

L line
10K 10K 10K 10K 7,500

Please view these examples with the Basic Bonus Chart on P. 15

R line
7,500

The line with fewer points

10K 10K 10K 7,500 7,500

40,000P

Day 1

L line60,000P

R line40,000P

Total
7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500

$40

The line with fewer points

75,000P

Day 2
7,500 7,500 7,500

L line75,000P
7,500 7,500 7,500 7,500 7,500 7,500 7,500

R line85,000P

Total
10K 10K 7,500 10K 7,500 7,500 10K 7,500

$100-$40 = $60

The line with fewer points

150,000P

Day 3

L line150,000P

R line155,000P

Total
10K 10K 10K 10k 10K 10K 10K 10K 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500

$300-$100 = $200

The line with fewer points

222,500P
Day 4
L line230,000P R line222,500P

Total
10K 10K 10K 10K 10K 10K 10K 10K 10K 10K 10K 10K 10K 10K

$400-$300 = $100

LR both reached 250,000P

Reach

Day 5

L line310,000P

R line282,500P

Total

$500-$400 = $100

L line has an extra 60,000P which will be carried over to the next cycle.

60,000

R line has an extra 32,500P which will be carried over to the next cycle.

32,500

Because you have reached a Full Cycle, 250,000P are cleared from both lines. In these 5 days you have achieved a total of

$500 in commissions 9

10.10

Honorary Titles
Requirements Level Title HA: HEALTH ADVISOR HM: HEALTH MANAGER HP: HEALTH PRODUCER SA: SENIOR ADVISOR SM: SENIOR MANAGER SP: SENIOR PRODUCER CA: CHIEF ADVISOR CM: CHIEF MANAGER CP: CHIEF PRODUCER GES: GLOBAL EXECUTIVE SEAT

Less than 1 cycle (less than 250K P) Full Cycle 1 9me (250K P & above) Full Cycle 2 9me (500K P & above) Full Cycle 5 9mes (1.25 million P & above) Full Cycle 10 9mes (2.5 million P & above) Full Cycle 20 9mes (5 million P & above) Full Cycle 30 9mes (7.5 million P & above) Full Cycle 40 9mes (10 million P & above) Full Cycle 50 9mes (12.5 million P & above) Full Cycle 60 9mes (15 million P & above)

10

10.11

Mega Match Bonus

Receive commission for direct referrals up to 3 Levels. Each >me a direct referral achieves a Full Cycle, you will receive a percentage of their achievements: Level 1: 10%, Level 2: 5%, Level 3: 3%
L line Amy R line

Amy is your Direct Referral 250K P

250K P

You Level 1

Full Cycle Achieved

$50
Bob

250K P

250K P

Bob is Amys Direct Referral

Full Cycle Achieved Level 2

$25
Cat

250K P

250K P

Cat is Bobs Direct Referral

Full Cycle Achieved Level 3

$15

In the above example, you have achieved $90 Mega Match Bonus Amy has achieved $75 Mega Match Bonus. Bob has achieved $50 Mega Match Bonus.

POINT 1

If your directly introduced Member continues to achieve Full Cycle, you will continue to receive this commission.

You will receive this commission even if you personally dont achieve a Full Cycle.
POINT 2

11

10.12

Uni-level Bonus

You will receive 1% of your direct referrals total purchased value. Depending on your >tle, you can receive as much as 8 levels of this bonus.

Requirements

1. You are an AP. 2. You have directly introduced 2 or more APs.

You

Titles
1% 1% 1% 1% 1% 1%

Maximum Level
Level 8 Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 None None

1% 1% 1% 1%

1% 1% 1% 1% 1% 1% 1% 1%

Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 Level 8

HA HM HP SA SM SP CA CM CP GES

12

10.13

Unit Bonus

All global members are eligible to receive a share of 1% of the Global Sales Revenue by achieving the Unit Bonus status. 1% of Global Sales Revenue that month Number of Units are achieved globally

Unit Bonus

Number of Units You have achieved

Requirements

1. You are an AP. 2. You have directly introduced 10 or more APs.

You can achieve more than 1 Unit Bonus

POINT 1

With 20 directly introduced APs you will have 2 Unit Bonuses. With 30 directly introduced APs you will have 3 Unit Bonuses.

You

Jan

Feb

Mar

Apr

May

Jun

Total 10 APs
Reach

Directly Introduced Members

1 Unit
In the above example, you have achieved 1 Unit Bonus at the end of June.

13

10.14

Team Bonus

Requirements

1. You are an AP. 2. You have directly introduced 2or more APs. 3. Purchased Enterprise Package or Annual Package

Eligible APs can get a share of up to 3% of Global Sales Revenue. There are 3 levels of eligibility with dierent >me period requirements. You can repeatedly receive Levels 1 to 3, all at the same >me. Both your L and R lines contain 5 APs who achieved a Full Cycle. You have directly introduced more than 2 APs, and at least 1 AP has achieved a Full Cycle. The above 2 condi>ons must be maintained for a preset 2-month-period. You will be eligible to receive 1% share of the Global Sales Revenue during that period. TB1 is paid on the 15th of January, March, May, July, September, and November.
R line

TEAM BONUS 1 (TB1)

L line

25K P

25K P

25K P

25K P
You

25K P

25K P

25K P

25K P

25K P

25K P
Your direct referral

25K P

25K P

25K P

25K P

25K P

25K P

25K P

25K P

25K P

25K P

TEAM BONUS 2 (TB2)

TEAM BONUS 3 (TB3)

You must achieve Team Bonus 1 commission for 3 consecu>ve bimonthly periods. You will be eligible to receive another share of 1% of the Global Sales Revenue during that period. You can receive both Team Bonus 1 and Team Bonus 2 at the same >me. TB2 is paid on the 15th of January and July. You must achieve Team Bonus 2, 2 >mes consecu>vely. You will be eligible to receive another share of 1% of the Global Sales Revenue during that period. You can receive Team Bonus 1, Team Bonus 2, and Team Bonus 3 at the same >me. TB3 is paid on the 15th of January.

14

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Period 1

Period 2 Pay TB2 Achieved

Period 3

Period 4

Period 5

Period 6

Period 1

Period 2

Period 3

TB 1

TB1 Achieved Sales Period

No TB1 Bonus

if you achieved TB across the specic preset periods, you will NOT be eligible for TB c
Pay Sales Period Pay Sales Period No TB2 Bonus Pay Sales Period Pay Pay Sales Period Pay Sales Period No TB3 Bonus Pay Sales Period

TB 2

TB 3

TB3 Achieved

POINT 1

Preset 2-month-periods (Jan to Feb, Mar to Apr, etc) the year is pre-set in specic 2-month period. The Team Bonus commission are paid by mee>ng your requirements within the pre-set months. If you achieve Team Bonus outside of the specic preset periods, as shown on the above diagram in Blue, you will NOT be eligible to receive TB commission.

10.15

Global Bonus

Requirements

1. You are an AP. 2. You are a Global Execu9ve Seat Member. 3. Purchased Enterprise Package or Annual Package

Each month 3% of the Global Revenue is set aside, and the amount is distributed when eligible members become qualied to receive the bonus.

Each Level of Global Bonus

1% of Global Sales Revenue Number of Eligible GES

15

GLOBAL BONUS 1 (GB1)

You are a Global Execu>ve Seat Member. You have 3 direct referrals, who achieved SENIOR MANAGER >tle for 3 consecu>ve months . You have purchased Enterprise Package or Annual Package. You will be eligible to receive a share of 1% of global revenue. Bonus is paid on 1st of January, April, July, and October.
R line

L line

SM
You

SM SM The above diagram shows all your direct referrals. Amongst them 3 of them have achieved SENIOR MANAGER >tle. You are eligible to receive a share of 1% of global revenue. You are a Global Execu>ve Seat Member. You have 4 direct referrals, who achieved CHIEF ADVISOR >tle for 3 consecu>ve months. You have purchased Enterprise Package or Annual Package. You will be eligible to receive a share of 1% of global revenue. Bonus is paid on 1st of January, April, July, and October.
R line

GLOBAL BONUS 2 (GB2)

L line

CA
You

CA CA CA The above diagram shows all your direct referrals. Amongst them 4 of them have achieved CHIEF ADVISOR >tle. You are eligible to receive a share of 1% of global revenue.

16

GLOBAL BONUS 3 (GB3)

You are a Global Execu>ve Seat Member. You have 5 direct referrals, who achieved Global Execu>ve Seat >tle for 3 consecu>ve months. You have purchased Enterprise Package or Annual Package You will be eligible to receive a share of 1% of global revenue. Bonus is paid on 1st of January, April, July, and October.
R line

L line

GES
You

GES GES

GES

GES The above diagram shows all your direct referrals. Amongst them 5 of them have achieved GLOBAL EXECUTIVE SEAT >tle. You are eligible to receive a share of 1% of global revenue.

Preset 3-month-periods
Jan, Feb, Mar Apr, May, Jun Jul, Aug, Sep Oct, Nov, Dec

GB1 achieved GB2 achieved GB3 achieved GB1 not qualied

GB1 achieved GB2 achieved GB3 achieved

GB1 achieved GB2 achieved GB3 achieved

GB1 achieved GB2 achieved GB3 achieved

GB2 not qualied

GB3 not qualied

POINT 1

Preset 3-Month-Periods: the year is pre-set in specic 3-month periods, or 4 quarters. The Global Bonus commission are paid by mee>ng your requirements within the pre-set months. If you achieved GB outside of the specic preset periods, you will NOT be eligible for the commission The GB commission will con>nue to accumulate each month, un>l a member achieves the requirement. The maximum payout for each type of commission is US$2 million.

POINT 2

17

10.16 Summary of Basic Requirements for Each Type of Commission

Types SPONSOR BASIC

Personally an Ac9ve IP YES YES

Buy Enterprise Package or Annual Package NO NO

Other requirements NO 1 or more directly introduced IPs NO 2 or more directly introduced IPs Personally reached GES level 1 or more directly introduced IPs NO

MEGA MATCH

YES

YES

TEAM GLOBAL UNILEVEL UNIT

YES YES YES YES

YES YES NO NO

Ac9ve IP = Member who has purchased a minimum of 10,000 points of products within a period (between the Registra9on Day and the same day the subsequent month.)

18