Qualification:
In order to start receiving commissions, you must register as a Distributor and accumulate 45 BVP from personal purchases within the same calendar month. You will receive your Distributor ID# at the time you register to become a Distributor. Once you receive your Entrepreneur Business Manual, youl need to read the manual, complete the Distributor Application Form found inside and mail or FAX it back to HTE USA. If we do not receive your signed Distributor Application Form, we will not be able to release your commission check. (If you sponsor other members into your organization and you have not qualified with the 45 BVP from personal purchases ?you will accumulate points ?but will not receive commissions.)

If your 45 BVP were not attained in the same month that you registered as a Distributor, the 45 BVP does not count as your PBVP.

• Distributor Registration
• 45 BVP
• Sign and send in Distributor Application Form

Sales Commission:
Once qualified as a Distributor and you sell or purchase products, you will receive a commission of 15% of CBV. If you sponsor other Distributors, you will begin to accumulate PGBVP.

• 15% on all personal sales/purchases

*Please note: A Distributor must submit their social security number for HTE to release a full commission check. Without the social security number the company must withhold 28% of the member's holdings.

Override Bonus: None

Growth Bonus: None

As you begin to apply the skills you've learned from your upline, continue to attend meetings, and host Home Parties, you will advance quickly if you apply the duplication methods of network marketing.

Qualification:
If your organization has accumulated 360 BVP within a period of 12 consecutive months after becoming a Distributor, you will immediately be promoted to Supervisor's Club. You also qualify for an Override bonus and Growth Bonus.

• Accumulate 360 BVP

Sales Commission:
Once qualified as a Supervisor and you sell or purchase products, you will begin to receive a commission of 24% of CBV. Accumulate PGBVP on all lower level downline Distributor's sales/purchases.

• 24% on all personal sales/purchases

Override bonus:
Once qualified as a Supervisor and you purchase products, you will earn 24% of personal sales CBV and 9% of personally sponsored Distributor's club members.

• 9% (24%-15%) Override Bonus from all downline Distributor1 level Distributor's sales/purchases

Growth Bonus:
In addition, if one or more of your 1st generation groups has achieved the Supervisor's Club level, you will receive a Growth Bonus of 2%* on their CBV

• 2% Growth Bonus from all 1^st level downline S sales/purchases within your group

*You will receive 2% Growth Bonus on your 1^st generation Supervisor's groups, however, you will not receive Growth Bonus from your 2nd or lower generation Supervisor's groups.

At this level you will need to apply the skills taught to you by your upline, attend meetings and host Home Parties.

Qualifications:
If your organization has accumulated 2,475 BVP within a period of 12 consecutive months after becoming a Supervisor AND you possess two 1 st generation Supervisors, you will be promoted to Manager's Club on the 1st day of the following month. You will also qualify for an Override Bonus and Growth Bonus.

• Accumulate 2475 BVP
• 2 1^st-level S level downline Distributors

Sales Commission:
Once qualified as a Manager and you sell or purchase products, you will receive a commission of 32% of CBV. Accumulate PGBVP from members of your organization.

• 32% on all personal sales/purchases

Override Bonus:
Earn 17% on the CBV of personally sponsored Distributor's Club members. Earn 8% on the CBV of personally sponsored Supervisor's Club members. If one or more of your downline organization below the 1st level (i.e. 2 nd , 3 rd , 4 th , 5 th , etc? has achieved the Supervisor's Club level, you will earn 6% on their CBV.

• 8% (32%-24%) Override Bonus from all downline Supervisor 1 level Distributor's sales/purchases

• 6% (32%-24%) Override Bonus from all downline Supervisor 2 level Distributor's sales/purchases (the other 2% will go to Supervisor 1 Growth Bonus)

• 17% (32%-15%) Override Bonus from all downline Distributor level Distributor's sales/purchases

Growth Bonus:
If one or more of your 1st generation has achieved the Manager's Club level, you will receive a Growth Bonus of 2%** on their CBV. If one or more of your 2nd generation has achieved the Manager's Club level, you will receive a Growth Bonus of 1%** on their CBV.

• 2% Growth Bonus from Manager1 level sales within your group
• 1% Growth Bonus from Manager2 level sales within your group

**No Growth Bonus from 3rd generation Manager's groups and down.

At the President level you will perform product demonstrations, apply your privileges to assist downlines in their development and attend HTE's Train the Trainer Camps.

Qualification:
If your organization has accumulated a total of 14,760 BVP after making the Manager's Club level within a period of 12 consecutive months AFTER becoming a Manager AND you have four 1 st generation Managers OR two 1 st generation Managers and four 2 nd generation

Managers, you will be promoted to the President's Club on the 1st day of the following month. You will also qualify for an Override Bonus and Growth Bonus as well as Leadership Benefits (as discussed herein).

• Accumulate 14,760 BVP
•  4 Manager ¹ OR 2 Manager ¹ + 4 Manager ²

Sales Commission:
Once qualified as a President, sell/purchase products and receive a commission of 40% of CBV. Accumulate PGBVP from members within your organization.

• 40% on all personal sales/purchases

Override Bonus:
Earn 25% on the CBV of personally sponsored Distributor's Club members. Earn 16% on the CBV of personally sponsored Supervisor's Club members. Earn 8% on the CBV of personally sponsored Manager's Club members.

If one or more of your 2nd generation has achieved the manager's Club level, you will earn 6% on their CBV.

If one or more of your downline organization BELOW the 2nd level (i.e. 3 rd , 4 th , 5 th , etc? has achieved the Manager's Club level, you will earn 5% on their CBV.

• 5% (40%-32%-2%GB-1%GB) Override Bonus from all downline Manager 3 level Distributor's sales/purchases

• 6% (40%-32%-2%GB) Override Bonus from all downline Manager 2 level Distributor's sales/purchases

• 8% (40%-32%) Override Bonus from all downline Manager 1 level Distributor's sales/purchases

• 16% (40%-24%) Override Bonus from all downline Supervisor 1 level Distributor's sales/purchases

• 25% (40%-15%) Override Bonus from all downline Distributor 1 level Distributor's sales/purchases

Growth Bonus:
None

Leadership Benefits:
Leadership benefits are awarded to the President Club level and above when they qualify with 500 PGBVP in a month and can total up to 14% of PGBVP. (Note: PGBVP are calculated from different level downline groups.) These benefits include:

• President's/Supreme President's Bonus from PGBVP (1%)

• Business Fund (1.5%)

• President's Growth Bonus (8%)

• Supreme President's Bonus (3.5%)

President's/Supreme President's Bonus from PGBVP:
All Presidents/Supreme Presidents (qualification of 500 PGBVP not required) will receive a 1% bonus on the PGBVP of their group.

• 1% bonus from PGBVP

Business Fund
For members of the President's/Supreme President's Club, HTE USA also provides a bonus calculated monthly on 1.5% of PGBVP. This bonus is NOT paid directly to the President's Club level member, but is kept in a separate account and accumulates until the $2,000 level is reached. At this time, the President/Supreme President may either purchase or lease a vehicle (based on a fair market value of at least $20,000) with the appropriate contracts approved and submitted to the Customer Service Department, or also to fund travel to company sponsored events and personally sponsored trainings and meetings that meet HTE USA requirements for qualifying individuals. Please contact a Customer Service Representative and request an Automobile Approval Form if you wish to apply the Business Fund towards a car, or request a Travel Form that has appropriate guidelines and approval for reimbursement from the fund.

• The PRC needs to accumulate 2,000 USD in USA or 3,000 CAD in Canada or 20,000 Pesos in Mexico in order to apply for the fund in all countries. (If the PRC reaches the quota in 1 country, the PRC can apply for all the countries' funds.)

• 3 countries' funds cannot be accumulated or combined together to reach the quota.

• After applying for the fund, if the accumulated fund is lower than the quota, the PRC can not apply for the fund again until the fund reaches the quota again.

• After the PRC applies for the fund, the remaining fund cannot be lower than the quota, unless the PRC is applying for purchasing a CAR or to join company activities.

• Presidents that currently have funds in these accounts, you will still see them itemized on your statements. Any new funds will be added to the new Business Fund Category. Application for these funds will still remain the same, for existing funds.

After approval of the car application, a check will be mailed for the applied fund directly to the qualifying President or Supreme President. Payment of balances in an account can be made in a single (1 month), 2 or 3-month payout. The following is the breakdown that determines the number of payout requirements:

$2,000 to 4,999 account balance requires a 1-month payout

$5,000 to 9,999 account balance requires a 2-month payout

$10,000 and over requires a 3-month payout

Unless appropriate paperwork is submitted, funds will remain in the account. A Distributor can only apply for the fund if the account is over the $2,000 benchmark, and the amount withdrawn will leave the account still above the $2,000 benchmark. The 2 nd payout can be used for a motor home, boat and/or vehicle with proper contract approval (a company tag/logo will be made available for Presidents/Supreme Presidents). Cash cannot be drawn out of this account. The Business Fund Bonus is the property of HTE USA and is not granted to a Distributor until the $2,000 benchmark is achieved and the proper paperwork is approved by HTE USA.

• Accumulated 1.5% monthly from PGBVP

• Accumulates in a separate account until a minimum of $2,000 is reached

• Used for down payment and/or monthly payments towards a vehicle of your choice or any travel expenses that are business related

• Every time the fund is applied for, the Distributor must have a minimum benchmark of $2,000. The applicant must also only apply for such an amount that the remaining fund will still be above the $2,000 benchmark, unless in the circumstance of applying for travel to a company sponsored event or purchase/lease of a car.

• $50,000 maximum accumulation per vehicle

• Cash cannot be withdrawn from this account

For members of the Presidents/Supreme Presidents Club, wishing to apply the Business fund for travel to company sponsored events and personally sponsored trainings and meetings that meet HTE USA requirements for qualifying individuals, a Travel Form has been created that will be submitted (with guidelines) and approved for reimbursement from the fund. For example, when the Company holds an annual convention for the Independent Distributors, as a President/Supreme President ?you can use your fund for travel expenses.

• Payouts will only occur as money is accumulated above the $2,000 benchmark

Distributors can not apply if the account is under $2,000 or if the amount you apply for will bring the balance of the account below the $2,000 benchmark, unless applying for travel to a company sponsored event, however, cash cannot be drawn out of this account. The Business Fund Bonus is the property of HTE USA and Distributors will receive earned funds after a Travel Reimbursement Form is submitted, along with a copy of the meeting agenda, travel receipts and a photo of the event.

Please contact a Customer Service Representative to obtain a copy of this form.

If a Distributor is terminated, all rights and benefits are forfeited. If a suspension occurs, all monies accumulated to that point will be paid on schedule, but at that point, monthly accumulation will cease until the suspension is removed. Any monies accrued during the suspension period will be forfeited and will not be issued.

• Accumulated 1.5% monthly from PGBVP

• Accumulates in a separate account

• Used for business expenses

• Cash cannot be withdrawn from this account

President Growth* Bonus:
As a special reward for Presidents who qualify with 500 PGBVP that have Presidents that breakaway, HTE USA has created a President Growth Bonus Program. In the program, you receive a bonus from your 1st to 4th generation downline Presidents who have roken away?from your organization.

This program rewards you for building other leaders in your organization.

The percentage is paid on President's Club level PGBVP. There will be a 30-day grace period on monthly requirements (500 PGBVP) for each President Breakaway on the 1st generation in the same month. (Example: 2 President Breakaways on the 1st generation in the same month = 60-day grace period from monthly requirements of 500 PGBVP.) Each bonus below is measured PER LEG. (Example: Sally has 5 generations of Presidents in one of her legs, and in her other legs, she has no President's Club level Distributors. The leg with Presidents would pay out the percentage bonus on that particular leg.)

• 4% 1 ^st generation President and their group

• 2.5% 2 ^nd generation President and their group

• 1% 3 ^rd generation President and their group

• 0.5% 4 ^th generation President and their group

The President's Growth Bonus is distributed through means of the Roll-up Program. (Refer to Section 8.1 for more details on the Roll-up Program)

The President's Breakaway Bonus is distributed through means of the Roll-up Program. (Click here for more details on the Roll-up Program)

* A President's Growth bonus is awarded when someone in your organization (direct downline) who has been promoted and qualified as a President, and has become equal to you. Supreme President's Club level receives the same bonus structure on their Presidents.