New Distributors enter at "Level 1" as shown in the above chart, and the Commissions on that line are the Commissions paid by Tower for sales to personally sponsored Distributors in their first downline. As the personally sponsored Distributors in turn sponsor additional Distributors, the original Distributor will receive commissions on sales with percentages as shown on "Level 2". This pattern is repeated through "Level 6".

The "Sales to Qualify" line at the bottom of the above chart is the total "Group Sales Volume" (as defined below) of Distributors during any 6 month period. The Commissions are computed as a percentage of wholesale price.

To be eligible to receive Commissions, Distributors must maintain "Active Status," that is, they must have purchased at least $30 of Product within the past calendar month Autoshipped to their own address.

No stocking or inventory of Product is required, although the Distributor may choose to purchase one or more individual items of Product in addition to the required $30 monthly minimum for use in sales, either as exhibits or for immediate delivery to a new Customer or newly sponsored Distributor. All sales of product, whether to a Distributor or a Retail Customer will be made only under the Autoship program except cases and half cases sold to retail establishments, and except for occasional additional sales of limited quantity as ordered by Distributors. At the Distributor's option, Tower agrees to repurchase any unused and undamaged portion of initial Product inventory at the Distributor's cost, minus reasonable shipping expenses, within 90 days from delivery unless the Distributor should, at a later date, reorder more than $500 of additional product. Purchases of cases or half cases for personal use are not permitted until the expiration of 45 days from a Distributor's sign up date.

If individual Distributors should loose their "Active Status" (such as, by not purchasing at least $30 of Product each month for their own account), they can reactivate their status at any time and again become eligible for Commissions in their "Effective Month" in the percentages shown in the chart.

If a Retail Customer or a Retailer (store, doctor etc.) should become a Distributor, the sponsoring Distributor will thereafter receive Commissions on purchases the new Distributor makes, and on their sales to others, and the sales of other Distributors in their Downline instead of only receiving mark-up profit to Retail Customers, or commissions on only a Retailers own purchases. A Retailer must purchase a Distributor Kit to become a Distributor, but remains exempt from the autoship requirement.

You, as a Distributor, will start receiving Commissions on a Distributor sponsored by you in your "Effective Month" which is the month following the month in which Tower receives a Distributor agreement completed and signed by the new Distributor together with an Autoship authorization.

Each increase in the commission percentages that result from Distributors progressing from a "1 Star" to an "8 Star" will be paid commencing in their Effective Month.

DEFINITIONS

Profit; the difference between the wholesale price and the retail price paid to Distributors from their sales to Retail Customers. Tower expects all such sales to be Autoship.

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Commission; Compensation paid by Tower and earned by the Distributors from sales of Product to Distributors they sponsored and their downline, as shown on "Level 1" through "Level 6" in the chart.

Effective Month; The first calendar month following the month Tower receives qualifying material including a Distributor Agreement and an Autoship Order Form complete with credit card number and other necessary information to place a new Distributor in the computerized system. Also, the Effective Month is the month following a Distributor having achieved a total group sales volume shown on the chart as "Sales to Qualify" which increases their commission percentage as they advances from a "1 star" to an "8 star" Distributor.

Group Sales; Total sales made by Tower to Distributors and their Downline group to Level 6 including Products purchased for their own account, sales to Retailers and retail sales. Excluding Distributor kits, tapes, forms and sales aids.

Sponsor; An individual Distributor who directly sponsors a person or other business to become a Distributor in his/her Downline group.

Autoship program; An arrangement by which a Retail Customer or a Distributor agrees to have a specified Product shipped directly to him monthly by the company and agrees to pay for such purchase by credit card, such authorization having been supplied to Tower. Added to the charge for the Product is a handling and shipping charge of $4.50 or 5% of the purchase price of the Product, whichever is the smaller. The shipping of cases and half cases is paid by Tower. Distributors are paid the same compensation on Autoship sales as they would be if the material was sold to them and they delivered it to the end user. It is through this program that the Distributor does not have to pay for and stock Product inventory, and collect payment from the end user. An Autoship program can be canceled at any time by written communication to Tower.

Downline; The line of sponsorship levels below a particular Distributor.

Upline; The line of sponsorship between a particular Distributor and all the sponsorship levels above.

Active Status; Distributors, who, during the past month have purchased for their own account at least $30 dollars of Product which was Autoshipped to his/her address. This can include Product used for their own consumption. In any month in which a Distributor fails to qualify for "Active Status", the commission that they would have otherwise earned will be paid to their next qualified Upline Distributor, and they will cease to represent one of the six levels in their next Upline Distributor's Downline. A Retailer who is also a distributor maintains "Active Status" by purchasing $90.00 in each 90 day period.

Product; Consumable Products manufactured by Tower, excluding Distributor Kits, tapes, forms and sales aids.

Retailer, A vitamin, health food or other store or retail establishment including doctors, chiropractors and other health service providers who retail products to their patients. Retail Customers purchase for their own consumption.

Independent Retail Consultants, An independent contractor Distributor who sells to a retailer as defined above.

REPRESENTATIONS AND COVENANTS

As in any business, the greatest earnings are achieved by those who devote the greatest time and effort in selling Product and building their business. It is anticipated that only a limited percentage will progress to Eight Star Distributor status.

The Distributor agreement may be cancelled for any reason by notification in writing to Tower within 3 days from the date of execution of the agreement and any amounts which may have been paid will be immediately refunded.

Each Distributor agrees to exercise diligence in performing a bona fide and essential supervisory, distributive, selling and soliciting function in the sale and delivery of Products to ultimate consumers.

Tower cannot assure that any participant will ascend to a higher level, or that they will succeed.

Each Distributor agrees that they will not make any claims that any Tower product can mitigate, prevent or cure any specific disease; and will never recommend that any customer stop taking or otherwise alter medication prescribed by a medical care professional.

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