NEW DISTRIBUTORS

To become NEW HEALTH distributor, you must be of legal age to conduct business in the State in which you reside. You must submit a completed Independent Marketing Distributor ( IMD ) Application and Agreement form, and it must be accepted by the Company. New Distributors must place an initial product order accompanying your application of 100 PBV or more.

YOU EARN – FAST

There are a number of ways to earn money as a New Health Distributor under our Capital Compensation Plan：

1. Personal Rebates. You become eligible for greater discounts and rebates as your sales and the sales of your group increases. You can earn up to 18% rebate on your Personal Bonus Volume or ( PBV ) as your status rise ( See glossary of terms. )
2. Group Bonuses. You can earn up to 13% Group Bonuses on the purchase volume of all new Distributors you sponsor into your group, until they become Directors. ( See table 1 )
3. Leadership Bonuses. As you develop Directors in your organization, you may then qualify to earn more bonuses up to six generations of qualified Directors.

ANNUAL PURCHASING REQUIREMENT

All Distributors who wishes to renew their Distributorship, must renew in their country of origin enrollment. However, a Distributor can maintain their Distributorship status by achieving 200 PBV in the calendar year. Distributors who do not achieve this purchase requirement are deemed to have voluntarily terminated their Distributorships. In this case the downline will permanently move up in sequence to the first active upline Distributor.

NEW HEALTH Associate

This is your first step as a NEW HEALTH Distributor. You can now purchase products from the company at wholesale prices and you may sponsor other Associates who will become part of your group. You are now eligible to earn：

• 5% rebate on your Personal Bonus Volume.

NEW HEALTH Supervisor

You will immediately become a Supervisor when the purchases of you and your group accumulate to a Group Bonus Volume ( GBV ) of 500 over any three ( 3 ) consecutive month periods. ( It may take you less than three months. ) You are now eligible to earn：

• 9% rebate on your Personal Bonus Volume
• 4% bonus on the Group Bonus Volume of your first level Associates.

NEW HEALTH Manager

You will immediately become a Manager when the purchases of you and your group accumulate to a Group Bonus Volume ( GBV ) of 1,500 over any three ( 3 ) consecutive month periods or less. You are now eligible to earn：

• 13% rebate on your Personal Bonus Volume
• 8% bonus on the Group Bonus Volume of your first level Associates
• 4% bonus on the Group Bonus Volume of your first level Supervisors.

NEW HEALTH Director

You will immediately become a Director when the purchases of you and your group accumulate to a Group Bonus Volume ( GBV ) of 3,000 over any three ( 3 ) consecutive month periods or less. ( See Pushing Up for special circumstances ) You are now eligible to earn：

• 18% rebate on your Personal Bonus Volume
• 13% bonus on the Group Bonus Volume of your first level Associates
• 9% bonus on the Group Bonus Volume of your first level Supervisors
• 5% bonus on the Group Bonus Volume of your first level Managers
• Director's and Leadership Bonuses, if qualified.

Fast Promoted Director

You will quickly become a Director in the following month if the purchases of you and your group accumulate a Group Bonus Volume ( GBV ) of equal to or greater than 2,000 at any one ( 1 ) month.

Rebate and Bonus Payout

All Personal rebates are paid each calendar month to Distributors who have Bonus Volume in the Capital Compensation Plan during that month. All Group Bonuses are paid each calendar month to Distributors who have a minimum Personal Bonus Volume of 100 in the Capital Compensation Plan during that month.

Qualified Director

You will become a "Qualified Director" and receive leadership Bonuses when, in any calendar month, you have accrued 800 in Group Bonus Volume ( 100 Personal Bonus Volume in the Capital Compensation Plan included ). In a calendar month, a Qualified Director earns a 10% Director's Bonus on all First Generation Director's Group Bonus Volume and 6% on all Second Generation Director's Group Bonus Volume. Your leadership Bonuses earned in any calendar month are based upon your Qualified Director status and the number of First Generation Qualified Directors in your group that month. Leadership Bonuses are paid up to 6 generations based upon the following criteria：

Gold Director

GOLD Director has one ( 1 ) or two ( 2 ) legs, with one ( 1 ) or two ( 2 ) First Generation Qualified Directors, including Roll Up. On their Group Bonus Volume, a Gold Director earns a 10% Leadership Bonus on First Generation Directors, 6% on Second Generation Directors and 5% on Third Generation Directors.

Emerald Director

An Emerald Director has three (3) or four (4) legs, with three (3) or four (4) First Generation Qualified Directors, including Roll Up. On their Group Bonus Volume an Emerald Director earns a 10% Leadership Bonus on First Generation Directors, 6% on Second Generation Directors, 5% on Third Generation Directors and 3% on Fourth Generation Directors.

Diamond Director

A Diamond Director has five ( 5 ) or six ( 6 ) legs, with five ( 5 ) or six ( 6 ) First Generation Qualified Directors, including Roll Up. On their Group Bonus Volume a Diamond Director earns a 10% Leadership Bonus on First Generation Directors, 6% on Second Generation Directors, 5% on Third Generation Directors, 3% on Fourth Generation Directors and 2% on Fifth Generation Directors.

Crown Diamond Director

A Crown Diamond Director has seven ( 7 ) or more legs, with seven ( 7 ) or more First Generation Qualified Directors, including Roll Up. On their Group Bonus Volume a Crown Diamond Director earns a 10% Leadership Bonus on First Generation Directors, 6% on Second Generation Directors, 5% on Third Generation Directors, 3% on Fourth Generation Directors, 2% on Fifth Generation Directors and 1% on Sixth Generation Directors.

Compression & Roll Up

If a Qualified Director has a Director in their downline who is not qualified, any Qualified Director below shall then roll up in sequence. In a calendar month, the Volume generated by any non Qualified Director that lies between two Qualified Directors will compress into one generation. It is then paid as the First Generation Leadership Bonus of the upline Qualified Director. When the total compressed volume of these non Qualified Directors is added in sequence and does exceed the qualification volume for an Active Director, then the volume from the last compressed non Qualified Director will be paid as the next generation.

President Bonus is awarded to U.S.A. Qualified Directors in the given month. It is calculated as 5% of the total U.S.A. domestic bonus volume generated by the U.S.A. distributors in the given month and it is divided proportionally to U.S.A. Qualified Directors who meet the following requirement in that month. The maximum amount of President Bonus for one IMD member in the given month will be 2.5% of the total U.S.A. domestic bonus volume.

SPONSORING INTERNATIONALLY

Who May Sponsor

International sponsoring is open to all NEW HEALTH Distributors who achieve the position of Director and above.

How To Apply

Contact your country's local office and request an "International Sponsorship Application". Follow the instructions to submit your application and once it is accepted you may sponsor internationally. There is a $25 processing fee applied to International Sponsorships.

Where You May Sponsor

You may only sponsor in countries where NEW HEALTH has officially authorized International Sponsorship. As NEW HEALTH continues to expand and open new offices worldwide, more opportunities will become available to Directors. To sponsor in Canada does not require an "International Sponsorship Application"

International Bonus Volume

International Bonus Volume transfers in the Capital Compensation Plan from country to country, and is calculated dependent upon the currency exchange rate, quoted on the New York Exchange, on the last business day of the calendar month. This will be updated on the corporate website.

OTHER REGULATIONS AND POLICIES

Qualifying

The monthly PBV and GBV requirement must be derived from your country of enrollment in order to qualify.

Local Policies and Procedures

Shipping, handling, sales tax, pricing, product availability, support material and volume requirements are subject to local jurisdiction of that country. For specific details please contact your country's local office.

Position Paid

Your group performance in any given month will determine the position for which you get paid. If your group falls below the highest position you have attained, you will be paid according to your group performance that month.

Payment Schedule of Local Bonuses

Commission checks for the Capital Compensation plan are paid on or about the 15th of the month following the month in which the rebates and bonuses were earned. Commission checks totaling less than $10 will accumulate until they reach or exceed $10. A check will then be issued on the next payment date.

Payment Schedule of International Bonuses

Commission checks for international sponsors are paid on International Bonus Volume, on or about 25th of the month following the month in which the rebates and bonuses were earned. A processing fee of 1% will be applied to checks up to $100. International commissions are calculated upon the prevailing currency exchange rates.

Return Distributors

If you have voluntarily terminated your Distributorship and wish to become a NEW HEALTH Distributor again, you may return under the same sponsor with no waiting period. However, you must begin as an Associate and start building your organization again, forfeiting your former downline. If you wish to switch sponsors, you can reapply to NEW HEALTH six months after the voluntary termination of your prior Distributorship.

Return Distributors

If you have voluntarily terminated your Distributorship and wish to become a NEW HEALTH Distributor again, you may return under the same sponsor with no waiting period. However, you must begin as an Associate and start building your organization again, forfeiting your former downline. If you wish to switch sponsors, you can reapply to NEW HEALTH six months after the voluntary termination of your prior Distributorship.

Pushing Up

As NEW HEALTH Distributor, who has not attained Director status, you may PUSH UP to Director position when any Distributor in your downline within your personal group becomes a Director. To push up to the level of Director, a Distributor must have a minimum of 500 in Unencumbered Bonus Volume in the same month that your downline Distributor becomes a Director.

＊ In the month a Distributor is being promoted to Director, in order to become a Qualified Director and receive Director's and/or Leadership bonuses that month, that Director must have 800 in GBV being used to qualify him or her for Director.

Modifications

The Capital Compensation Plan may be modified from time to time by the Company in its sole and absolute discretion.
©2013 NH Nutraceutical, Inc. All rights reserved.

GLOSSARY OF ITEMS

Accumulated Group Bonus Volume ( AGBV )

This refers to your Group Bonus Volume combined for the most recent consecutive ( 3 ) three month period.

Active Distributor

A Distributor is considered active in any calendar month in which he or she has Personal Bonus Volume ( PBV ) in the Capital Compensation Plan. This is necessary for a Distributor to receive rebates and bonuses under the Capital Compensation Plan.

Bonus Volume

A Point system corresponding to a specific product value on which all rebates and bonuses are paid. It is on this product value that all positive advancement and qualifying requirement are calculated.

Group Bonus Volume

This is the total of your Bonus Volume plus the total bonus Volume of all Distributors sponsored by you and all Distributors sponsored by them, and so forth to infinity, who have not achieved the position of Active Director.

Breakaway

The process that occurs when a Distributor achieves the position of Active Director. The Group Volume of the Distributor who attained the level of Director, in effect "breads away" from the upline sponsor. The GBV of the upline according to the Directors and Leadership Bonus schedule no longer counts towards the upline sponsors GBV. Breakaway Directors bring with them their Group Managers, Supervisors and Associates and are referred to as Generations of the upline sponsor.

Distributor

An individual whose Independent Marketing Distributor (IMD) Application and Agreement has been submitted and accepted by the Company, and who has kept their Distributorship current through annual renewal. This term is used to refer to persons in all positions in the Capital Compensation Plan.

Generations

Directors who break away from your group are First Generation Breakaways. Directors who break away from a First Generation are Second Generation Breakaways, and so forth.

Personal Bonus Volume

The value in Bonus Volume of commissionable products you personally purchase each month from the Company.

Qualified Director

A Director who in any calendar month has both 100 PBV in the Capital Compensation Plan and 800 in GBV.

Unencumbered Bonus Volume

The Group Bonus Volume, excluding the Group Volume of the downline Distributor, who is attaining Director status in that calendar month.

Whole Sales

The discounted price which Distributors pay the Company for the products ( With some products the Bonus Volume is not equivalent to the wholesales price ) .