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Enagic European Prospectus Overview and Summary

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The Prospectus has been drafted to provide the impending European expansion of Enagic This private document is invitation only and must NOT be used for general circulation. It is forbidden to post any content onto blogs or upload for public viewing on the internet. Premier Partners reserves the right to change, amend or alter any information contained within this document without prior notification. Version 1.02

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Contents:

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Introduction & Background The 11th Hour Kangen Water Characteristics Company Background Endorsements Target Market The Marketing Plan
6 Ways to Earn Income Basic 8 point Income Structure Bonus Pools & Leadership Overrides Income Diagrams Page 14 Page 15 Page 18 Page 19

Page 3 Page 4 Page 5 Page 7 Page 10 Page 12 Page 13 Page 14

Product Price List Statistics

Page 21 Page 22

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Introduction:
The Enagic prospectus is an invitation to explore the unique opportunity offered by Enagic, a 35 year old; debt free, privately owned Japanese technology Company that is ready to launch a revolutionary concept and accelerated income system into Europe. Enagic, pronounced En-a-jik, primary objective is to become a multi-billion dollar Company, using a combination of key factors not found in any other business venture, past and present that has an incredible 70% leveraged commission payout. At the centre is this powerful world beating, patent-pending marketing plan that captures the true essence of any entrepreneurs needs, that pays substantial commissions daily on each sale(s), with unlimited overrides and additional bonuses. It is recommended that you review this information along with the new interactive DVD that contains a comprehensive guide to why this opportunity is so different, so unique, so versatile and so lucrative, and the huge impact it has on peoples life and environment. Grab your favourite beverage, sit back, relax and put a do not disturb sign on your door.

Background:
Entrepreneurs the world over are constantly looking for the next big idea, a new niche of gap in the market to become wealthy through. In essence, doing the least amount of work, to make the most amount of money in the shortest possible time. Its got to have mass appeal, exceptional quality, brilliant timing, first mover, uniqueness and leveraged. What if there was a way to produce the finest, purest, tastiest, hydrating, antioxidant healthy alkaline water; so good for you that once youve tried it, you cant do without it. Imagine a water with such incredible health benefits that the antioxidant properties contained in the water greatly slows down the aging process, with the essential component in maintaining optimal health, the elixir of life and the fountain of youth. A machine that produces an unlimited supply of what is known as Kangen water that holds miraculous properties, looking after all your health and financial requirements. Kangen has become a household word in Japan and is now used mostly to describe pure, healthy, alkaline drinking water which is rich in minerals and ionized through electrolysis.

Global Trends:
Ten years ago, who would have thought that people would actually pay for their water! The past decade has witness one of the most explosive global trends in modern times; from virtually nowhere the bottled water industry has become one of the most talked about topics in conversation and the fastest growing and most lucrative in business. Significant changes in consumers buying habits have contributed to the bottled water industries worldwide sales reach in excess of 30 billion annually, and in 2005 were predicted to increase by a further 90% in the next 3 years, if the trend continues. Bottled water emerged as the second largest commercial beverage category by volume and is growing even more forcefully on a global scale where volume is unparalleled. In 2007, total U.S. category volume surpassed 8.8 billion gallons, a 6.9% advance over 2006s volume level. That translates to over 29 gallons per person, which means U.S. residents drink more bottled water annually than any other beverage, other than carbonated soft drinks (CSDs). *See page 21 for actual figures. Back to top
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The 11th Hour

In February 2008 Panorama, the worlds longest investigative TV show made a BBC documentary entitled, Bottled Water: Who Needs It? Ctrl+click to watch video. For the first time, viewers were made fully aware of the astronomical environmental effect bottled water has on our planet, and the ethical questions it raises such as: The Carbon footprint of bottled water generates 600x more CO2 than tap water. Drinking a bottle of water has the same impact on the environment as driving a car for a kilometre. Over 250 million barrels of oil per year are used to produce plastic bottles. Over 40% of bottled water is from municipal water supplies. Environmental concerns on energy consumption, waste, transportation, greenhouse gas emissions and damaging effect of water extraction. The UK buys 13 billion plastic bottles of water a year and only recycles 3 billion. The health hazard of the non-biodegradable bottles filling up the landfills. The amount of plastic produced globally has doubled since 2000. It takes seven litres of water to make a single one-litre plastic bottle. The 3 that would buy 1 bottle of water would pay for 10,000 litres of tap water. Worldwide 6,000 children a day die from drinking poor water. The rising tide of plastic polluting the coastline. Population of many maritime birds diminishing through choking on raw plastic. Hidden threat of granular pellets, the raw material that makes most plastic bottles

In the Daily Telegraph newspaper an article was written on 17th February 2008 entitled Bottled water is immoral. It pointed out future governmental plans to make drinking bottled water as unfashionable as smoking! The city of San Francisco has already banned bottled water for its city workers and this has already been followed by Seattle. This trend is continuing with New York and now London, UK launching similar campaigns to persuade people to boycott bottled water, and pubs and restaurants being encouraged to stop stocking bottled water. In August 2008, another city called London, this time in Ontario, Canada is set to become one of the first cities in the world to partially ban single-use plastic water bottles in all city-run facilities after its councillors voted overwhelmingly to halt sales. Is the bottled water industry the biggest con-trick in history? was the subject to a recent debate in the guardian newspaper. Well its hard to believe that we are that much thirstier than we were in the mid Seventies, yet we are drinking 200 times more bottled water as we did 3 decades ago. Its not especially good for us and the growing plume of carbon dioxide and waste plastic piling up, the government, media and public opinion and is that bottled water is a fad we cant afford and becoming a thing of the past. This is becoming more and more evident where supermarket sales are running at their slowest rate since bottled water started becoming popular a decade ago. In the US PepsiCos Aquafinas sales volume is down 12.7 per cent year to date, and in the UK, sales volumes have slid 4.7 per cent with sales revenues falling 5.1 per cent in the 12 months to mid-August, according to research group Nielsen. Back to top
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This compares with growth of 11 per cent over the same period last year, and more than 21 per cent in 2006. Bottled water sold in most industrialized countries costs between $500 and $1,000 per cubic meter, compared to $0.50 for municipal water. Meanwhile, more than 40 percent of water bottled comes from public water supplies, and also demand significant amounts of energy to be produced, packaged, stored, and transported. While cities recycle about 23 percent of their plastic bottles, some 2 million tons of the bottles are sent to landfills each year, the Worldwatch Institute reported in 2007. Corporate Accountability International estimates that the annual cost of disposing of water bottles is 50 million.

The True Cost of Bottled Water

Bottled water is now being marketed for its purity, taste and health benefits with some even the promise of weight loss. The majority of bottled water brands and in particular the ones promising great health benefits have a mildly acidic pH value of below 7. Drinking such water just contributes to the chronic over-acidity that underlines the abundant lifestyle related diseases and a major factor to being over weight. Its being over acid that determines the amount of fat stored on your body. These waters typically measure a +100 or in some cases much higher on an Oxidation Reduction Potential (ORP) meter, meaning that they are a source of free radicals, as opposed to anti-oxidants, and drinking them may cause oxidative damage to your body. Not only does bottled water damage the environment, it doesnt do you any good either and by drinking 2 bottles a day (1 litre) it would cost you around 16,000 over 15 years.

The Solution
K A N G E N W A T E R !
The Elixir of life and the fountain of youth.

In Japan, hospitals and clinics have used purified, electronically restructured, hexagonal, ionized, alkaline water; known as Kangen water, for over 30 years to treat a number of different diseases and conditions. Scientific studies that have been performed in well respected universities and hospitals around the world that drinking Kangen water can: Release excess body fat and stored toxins Normalize blood sugar and insulin Normalize blood pressure Support healthy colon function Resolve urinary tract infections Relieve asthma and chronic respiratory infections Stop abnormal gastro-intestinal putrefaction Reduce proliferation of candida, fungus and undesired microforms Reduce chronic pain Improve wound healing Slows down the aging process The ability to neutralize free radicals Promotes healthy weight loss Boosts body's immunity against disease Increases absorption of important vitamins and minerals

I think that drinking Kangen water is the most important thing a person can do for their health, ~ Dr. David Carpenter, Neurologist & author of more than 240 publications Back to top
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What is Kangen Water?

Kangen means Return to Origin in Japanese and the word is regulated in Japan by the Japanese government. In North America and Europe, Kangen water is a trademark of Enagic, Inc. To view the Kangen Water video demonstration Ctrl+click here. In order to be called Kangen, the qualities the water must contain are as follows: 1. 2. 3. 4. 5. Have an alkaline pH reading greater than 8.0 Micro-clustered forming a hexagonal structure Pure from bacteria and chemicals Enriched in minerals and nutrients Has a high negative ORP reading

Kangen water is also known as hexagonal water, microwater, spa water, ionized water, alkaline water or living water.

Tap or bottled Water

Kangen water

Kangen water is used in hundreds of hospitals and clinics in Japan for its scientifically documented health benefits, and the machine is a licensed medical device in Japan. Kangen water is a free radical scavenger with measurable anti-oxidant properties which are much greater than any food or nutritional supplement on the market. Research shows (Bio-REDOX Lab) that Kangen water assists in repairing damaged DNA strands. Kangen water provides a way for toxins to exit the body by neutralising free electrons. Toxins stored in fat cells, tissues, organs and lymphatic fluids are released, resulting in fat loss. Kangen water is Living Water that deeply hydrates the cells. It is absorbed six times faster than tap water or bottled water as the clusters are smaller, more compact, hexagonal shaped with no chlorine and other pollutants. Kangen water is rich in ionic minerals and helps the body preserve and maintain its calcium, magnesium, potassium reserves & proven to significantly increase bone density. Kangen water is alkaline and is able to neutralise and balance a chronic over-acid state which is the underlying cause of many diseases, pain, excess fat and inflammation.
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The Characteristics
IONIZATION - for potent anti-oxidant, anti-aging and anti-inflammation RESTRUCTURING - for hydration at the cellular level AKLINIZATION - for acidic waste reduction FILTERING - for removal of cancer causing additives and treatments

Enagics flagship product is the LeveLuk SD501 machine, which is the most popular, top of the line home model, the finest most complete alkaline producing, micro-clustered (hexagonal), anti-oxidant, Kangen water ionizer in the world.

Here are some of the unique features that make it the gold standard in the industry: 5 year product warranty 15-20 year life span Comprehensive maintenance program Superior automatic self-clean system Approved medical device in Japan Is UL and certified as a food processor by the FDA Endorsed by the 6500 Doctors of the Japanese Assoc of Preventative Medicine Seven platinum coated titanium plates for electrolysis

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This incredible device not only produces the highest hexagonal Kangen-grade water, its revolutionary technology can make an unlimited supply of 2.5 pH acidic water, (which is used for treating many forms of skin conditions - kills viruses and bacteria like e-coli and salmonella within 30 seconds), all the way to a high alkaline 11.5 pH for cooking and cleaning pesticides and herbicides from fruit and vegetables.

Four Good Reasons to Drink Kangen

1. Increase Hydration The Ionization process reduces the water molecular cluster by two thirds. Smaller hexagonal water clusters enhance tissue repair and waste removal. 2. Balance Body pH This is one of the first steps to optimal health and weight loss. 3. Increase Blood Oxygenation Drinking Kangen water on a regular basis increases the amount of dissolved oxygen in the blood, invigorating and energizing to the body. 4. Neutralize Free Radicals - Kangen water, with the abundance of hydroxyl ions (OH-), provides extra electrons that neutralize destructing free radicals that cause substantial biological damage, leading to aging and illness. Back to top
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Hexagonal Kangen Water: More than Alkaline

To get the full benefit of Kangen water it must be produced on demand, as the highest negative ORP and presence of hydroxyl ions occurs when the water is initially produced, and the percentage of hexagonal clusters is at its peak. Drinking fresh Kangen water gives the body more anti-oxidant power and deep hydration that makes the machine one of the best investments you can make for your wellbeing and financial future.

Reverse osmosis water or dead water such as Aquafina and Disani has a pH range from 5.56.3 with the majority of bottled or designer water with a pH value below 6.8.

7 Kinds of Water
There are 7 kinds of hexagonal water created by the LeveLuk SD501 machine that covers a complete range of pH values for multiple purposes and everyday use. Strong Acid Sanitary Water (pH 2.5) has excellent cleaning and disinfecting properties that can prevent food poising and bacteria spreading. It kills HIV and other virus such as MRSA, strep, candida, athletes foot fungus, E. coli, salmonella and a host of other pathogens in 30 seconds. Mild Acid Beauty Water (pH 5.5) offers cleansing and astringent qualities which lends softness to skin and tightens pores just like a toner would. Its great fro sensitive skin and problems like psoriasis, rashes, eczema or dry skin. Clean Water (pH 7.0) is pure, neutral drinking water for babies and taking medication. Kangen Drinking Water (pH 8.5, 9.0, 9.5) is the delicious tasting, anti-oxidant, hexagonal, alkaline drinking water that is the most important step to optimal health. The numerous health benefits from balancing your bodys pH, deep hydration, healthy weight loss, boosting immunity, increasing blood oxygenation and absorbing free radicals make it an essential source for a healthy youthful lifestyle. Strong Kangen Water (pH 11.5) has a detergent effect and is able to dissolve and draw oil based substances. With a pH greater than 11.0 it emulsifies oil, cleans oily and greasy objects, removes pesticide residue from produce and infuses vegetables.
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Corporate Background
Head quartered in Tokyo, Japan Enagic has become the market leader, creator and original equipment manufacturer (OEM) of a revolutionary water technology that controls every aspect of production, from assembling to distribution. The net result is the finest, purest, ionized, microclustered, alkaline water in the world known as Kangen water (meaning return to origin in Japanese) that has tremendous anti-aging and health benefits. This great tasting antioxidant Kangen water takes care of all your health needs, as won many awards and accolades and provides an unrivalled opportunity, in one of the fastest growing, lucrative, critical and most talked about industries in the world.

Company History:
Enagic was founded in June 21st 1974 in Tokyo, Japan by Hironari Oshiro, for the research and development for water treatment technology. By 1988 Enagic had become specialists in developing pure Kangen water with the philosophy of True Health, True Wealth. In 1998 Enagic devised unique marketing plan through word of mouth advertising that became there sole source of distribution that contributed to becoming a member of the Direct Sales Association. In January 2000 Enagic began sales of their core product the LeveLuk range with the launch of LeveLuk DX, and in October 2001 merged with Toyo Aitexa, the leading Japanese Company that specializes in electrolysis water generating technology. January 2003 was designated as Global Year One. International operations were initiated and Enagic USA, Inc. was born. Product line-up was expanded to include the LeveLuk Super 501 and the Anespa bath water system. Los Angeles Branch Office was opened. In September 2003 Enagic opened their 3rd country with the launch of Taiwan quickly followed a month later with the opening of the offices in Taipei. In November 2003 Yanbaru Natural Materials Factory opened in Okinawa, Japan. June 2004 opened their New York Branch Office and later that year Enagic celebrated 30th year anniversary. Also that year Enagic began sales of Kangen Ukon Sigma. September 2004 saw the unveiling of the most advanced micro-clustered, ionized alkaline water machine in the world with Enagics flagship product the LeveLuk SD501. Enagics expansion into new markets continues to grow with Hong Kong opening in 2005 and Canada in August 2006. In July 2008 Enagic opens its doors into Europe, setting up the European offices in Dsseldorf, Germany. Back to top
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Notable Milestones, Achievements and other Highlights:

Debt free, rock solid, 35 year old privately held company, with only one owner Technology used in 100s hospitals and 400,000 households in Japan Member of the Direct Sales Association Registered Patent and Trademark for Kangen Water Produce every piece for each machine assembled by hand Enagic won the Linus Pauling Grand Prize for Environmental Impact in 2004 Approved by the Japanese Ministry of Health & Welfare as a Medical Device Endorsed by Association of Preventative Medicine for Adult Diseases Original Equipment Manufacturer (OEM) Enagic carries the ISO 9001 and ISO 14001 certifications. 2007 revenues exceeded $300 million Over 450,000 units sold globally by word of mouth

"Water is the most basic of all resources. Civilizations grew or withered depending on its availability." ~ Dr. Nathan W. Snyder.

Background & Corporate Profile:

As an Original Equipment Manufacturers (OEM), Enagic controls every aspect of the product distribution and quality assurance output including: Manufacturing Assembly Finance Parts Service Rebuild Trade Quality Control Marketing Sales Warranty Recruiting Training Support Promotion Advancement

Each aspect is carefully integrated to ensure orderly progression from start to finish. Back to top
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Endorsements
During its impressive early history, Enagic has been honoured and endorsed by numerous organizations in Japan. Two notable honours are as follows: An endorsement by the:

This non-profit association of independent doctors is the largest and most respected organization of its kind and is known for its long and arduous selection process issues only one endorsement per product in a product line. They endorse only the very best in any given category or industry. Their focus is on reviewing and endorsing a variety of products and technologies that may help treat lifestyle related diseases such as Osteoporosis, Diabetes, Cancer, High Cholesterol and Hypertension. Enagic is the ONLY Company in the water industry to be awarded this honourable endorsement that it has achieved every year since it was first awarded to Enagic in 2002. Recognition by the:

Enagic water products and technology have been approved for their health merits and the LeveLuk SD501 has been categorized as a certified Medical Device in Japan.

12 offices and a factory in Japan:

Tokyo Osaka Sapporo Nagoya Kagoshima Katano Hiroshima Shikoku Okinawa Nago Goza

Additional International Offices:

Kowloon, Hong Kong Taipei, Taiwan Tai Chung, Taiwan British Columbia, Canada

United States Domestic Offices:

Los Angeles, CA New York, NY Chicago, IL Honolulu, HI

European Office:
Dsseldorf, Germany

Planned offices openings:

United Kingdom France
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Italy South America Back to top

The Target Market

The current 250 billion dollar market projected at 1 trillion by 2012 targets everyone who is seeking optimal health and well-being including: Enlightened Individuals Family Members Athletes Young People Baby Boomers North America Europe 23 other countries worldwide

The Baby Boomers, who are all fifty years of age and older, are experiencing the health issues that come with seniority and lifestyle choices. They are more dedicated to resisting the aging process than any generation ever before and recognize that the only real solution is to fight the cause of the following ailments: Heart Disease and Stroke Infection Depression Sleep Disorders Low Energy Addiction Osteoporosis Leukaemia and Lymphoma Diabetes Attention Deficit Gout Acid Reflux

Water is the single most important resource for the human body. It is an essential nutrient and it is a part of every function of the body. Water accounts for approximately 70% of an individuals body mass. In order to function properly, water must be consumed daily at an average of 2.5 litres per day. When not enough water is consumed, the body can begin to develop certain illnesses.

Fountain of Youth
The PH balancing your fluids of your body is the key to permanent weight loss. Its not that people are over weight, they are over acid, because our bodies constantly need energy and theres a waste product in energy production which are acids. If the body doesnt eliminate acids, then that acid gets parked on your hips, thighs, buttocks, waistline and even our brain which is what makes people fat.

Thousands and thousands of people around the world are experiencing the benefits of Enagic Kangen water. True health is not only maintained through the water we consume but with all the water we use in our daily lives water for drinking, cooking, personal care, general cleansing and sanitation. During a shower, our bodies absorb roughly 2 glasses chlorinated water through our skin so Enagic has developed an ion mineral activator called Anespa for washing and bathing. Drinking Kangen water reverses the effects of alcohol, balances your pH level and rehydrates your body giving a natural way to cure hangovers. Back to top
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The Marketing Plan

The power of Enagics marketing plan is quite literally outstanding, and without a shadow of a doubt there is no quicker and more exciting way to create true wealth with the least number of people. In 2 years you can accomplish more than most people in 40. Enagic has proven to be the most powerful income producing business system available today and is perfectly positioned to penetrate multiple niches as previously mentioned, as well as a lucrative recession proof income to beat the credit crunch and recession. To illustrate the power and potential of the Enagic Marketing Plan, last year several US distributors made in excess of $500,000 in their first year with the Company, some of them close to the $1 million mark without a prelaunch with ONLY 1000 team members! The best way to describe this unique marketing plan is a Unilevel with coded bonuses on the front end, enhanced by a dual linear leadership structure on the back end; designed to identify, train, motivate, monitor and support profession-grade top income earners. There is NO sign-up fee to become a Distributor and NO product purchase is required. It is, however, necessary to sell product to earn rank advancement and to earn commissions and additional income bonuses. It could well be the best investment you will ever make! All Distributors purchase product at the same cost, directly from the company and enjoy the following features in the Enagic Compensation Plan: No stocking of inventory No monthly qualifications No time limits No annual renewal Pays daily Direct deposit Accumulative sales Six ways to earn International sponsoring Pass It On To get your Enagic machine for FREE! Refer 3 They refer 3 Machine is FREE!!

Whats so unusual about the plan is that there are NO Monthly Qualifications, the plan pays on a point structure rather than levels, youre paid daily with cheques in the mail and the Company pays a heart stopping 73.5% out in commissions. The marketing Plan is based around the direct and indirect sales of the LeveLuk SD501 Kangen Water machine with no product purchase required, dynamically designed to incorporate the most effective reward system for todays networker & entrepreneur.

Six Ways to Earn Income

Enagics marketing plan begins with the basic 8 point compensation structure and is the foundation from which each distributor begins receiving daily commissions with all product sales. For a complete Marketing Plan Video explanation Ctrl+click to view. Each point has the same monetary value of 145 (LeveLuk SD501) with 8 points paid out for each sale. Once a distributor has made one direct sale a Special Point (SP) status is reach and maintained by any additional direct sales within 90 days of each other. The SP is worth an extra 30 per point on every direct or indirect sale for a total of 175. The LeveLuk SD501 costs 2780 (Ex. VAT) with 8 points totally 1400 allotted for pay out on each unit sold, with the amount of commission based on distributor ranking with a maximum of 6 points per distributor. 6 x 175 = 1050. Other Companies take an average of 15 years to collect and payout commissions that takes Enagic 1 day on each sale. 160 autoship for 12 months over 15 years is 28,800.
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All 1A to 6A distributors are qualified to receive basic 8 point commissions and, if applicable, the Special Point bonus of 30 based on distributor ranking: Points 1A = 1 point 2A = 2 points 3A = 3 points 4A = 4 points 5A = 5 points 6A = 6 points Basic 145 290 435 580 725 870 SP Bonus 175 350 525 700 875 1050 Qualification 2 Direct Sales 3rd Unit 11th Unit 21st Unit 51st Unit 101st Unit

The Basic 8 Commission Structure pay-out begins with the Distributor that made the sale and is paid out upline from that point through 8 points (1400) within 8 levels. Example #1 Example #2

Level 1 2 3 4 5 6 7 8

You 6A 1A 2A 1A 1A 2A

Earns 175 Earns 175 Earns 350 Earns 175 Earns 175 Makes Sale & Earns 350 Sale Occurs

Level 1 2 3 4 5 6 7 8

You 6A 2A 3A 1A

Earns 350 Earns 350 Earns 525 Makes Sale & Earns 175 Sale Occurs

All of the activity in these two examples took place within your 8 levels. When these commissions are calculated on each unit, the person making the sale is paid first. His/her sponsor is paid next and each eligible upline in succession until 8 points (1400) are paid out. Each eligible Distributor is paid based on his/her pay rank at the time of calculation. At any given rank, you earn the amount due for your rank, less the amount due to other distributors between you and the sale. Back to top
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Use the Enagic Basic 8 point Commission Structure chart on page 19 for reference as you are reading the explanations. Understand these numbers are the maximum each rank could make from the sale on that particular level. The following explains how ranks are achieved one step at a time, although one step at a time is not necessary. A Distributor advances directly from 1A (must have 2 direct sales) to any other rank when the accumulated volume meets the stated requirements. Once a rank is achieved, it is always retained until the next rank is attained. A Distributor never has to start over and Distributors 2A through 6A can have an unlimited number of direct sales. Example: You are a 1A Distributor with at least 2 direct sales, you will be qualified to advance directly to 6A when your accumulated sales volume amounts to 100 units within 8 levels, and after you make another direct sale after this point.

You 1A

You 6A

Direct #1

Direct #2

Direct #3

100 Units total within 8 Levels

Back to top

You
1A 1A 2A 350 10 3A 525 20 4A 700 50 5A 875 100 6A 1050 175
Group Sales

1050 875 700 525 350 175

8 Referrals 6 Referrals 7 Referrals 5 Referrals 3 Referrals 4 Referrals

175

350 175 119

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525 350 175

700 525 350 175

875 700 525 350 175

1. Basic 8 Point Commission Structure

1A Distributor Qualification to Achieve this Rank: Personally sell one LeveLuk SD501 to advance to the rank of 1A (a unit sold to one self is counted as a sale) Reward: Earn 175 commission per unit on the first 2 direct sales. Earn 175 per unit on indirect sales from those first two 1A Distributors. Down through 8 points within 8 levels. 2A Distributor Qualification to Achieve this Rank: You must first be a 1A Distributor. Accumulated total direct sales of 2 units. You must personally sell one additional unit to be paid as this rank (your 3rd direct sale). Reward: Earn 350 per unit on your 3rd direct sale Earn 350 per unit sold beneath your 3rd direct, down through your 7th level. Earn 175 per unit sold on your 8th level. 3A Distributor Qualifications to Achieve this Rank: Accumulated total sales of 10 units (direct plus indirect). You must personally sell one additional unit to be paid as this rank (your 4th direct sale). Reward: Earn 525 Earn 525 Earn 350 Earn 175 per per per per unit unit unit unit on your 4th direct sale. sold beneath your 4th direct, down through your 6th level. sold on your 7th level. sold on your 8th level.

4A Distributor Qualifications to Achieve this Rank: Accumulated total sales of 20 units (direct plus indirect). You must personally sell one additional unit to be paid as this rank. Reward: Earn Earn Earn Earn Earn 700 700 525 350 175 per per per per per unit unit unit unit unit sold sold sold sold sold on your 5th direct sale. beneath your 5th direct, down through your 5th level. on your 6th level. on your 7th level. on your 8th level.

5A Distributor Qualifications to Achieve this Rank: Accumulated total sales of 50 units (direct plus indirect). You must personally sell one additional unit to be paid as this rank. Reward: Earn Earn Earn Earn Earn Earn 875 875 700 525 350 175 per per per per per per unit unit unit unit unit unit on your 6th direct sale. sold beneath your 6th direct, down through your 4th level. sold on your 5th level. sold on your 6th level. sold on your 7th level. sold on your 8th level.
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6A Distributor Qualifications to Achieve this Rank: Accumulate total sales of 100 units (direct plus indirect) You must personally sell one additional unit to be paid as this rank. Reward: Earn 1050 per unit on your 7th and all subsequent direct sales. Earn 1050 per unit on indirect sales beneath your 7th direct, down through your 3rd level. Earn 875 per unit sold on your 4th level. Earn 700 per unit sold on your 5th level. Earn 525 per unit sold on your 6th level. Earn 350 per unit sold on your 7th level. Earn 175 per unit sold on your 8th level.

Back to top

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2. Filter Commissions
Filter commissions are paid daily. All 1A and higher ranking distributors are qualified to receive filter commissions. Commissions are paid within 8 points and amount of commissions are based on distributor ranking. Enagic pays commissions to distributors after the total amount accumulated equals 200.

3. Educational Allowance
Must be a 6A Distributor (or higher) to be eligible for this incentive. When a distributor becomes a 6A Distributor, he/she will receive an Educational Allowance for each unit sold below his/her 8 points. The Allowance is effective for units sold after the first day of the month following the Distributor's advancement to 6A. The 6A Distributor will receive the Educational Allowance, without limitation of levels. The Education Allowance is paid daily, when sales occur. Three 6A Distributors and higher who are nearest to a new sale will be qualified. 2nd and 3rd nearest 6A Distributors must have a direct sale within a year to receive this commission. The nearest 6A Distributor receives 119.00 (28.00 each for the other two 6A Distributors) for each SD501 sale below the 8 points, without limitation of levels.

4. Step-Up Bonus
When a prospective distributor is qualified to be a 6A distributor, the Step-Up Bonus will be paid to the closest 6A distributor. The Step-Up Bonus will be calculated at the end of the month and paid on the 25th of the following month. The Step-Up Bonus is paid out on your first two 6A legs once you have reach the rank of 6A distributor for 6 consecutive months. The bonus is paid up to 1000 on each of the first two 6A distributors depending on the accumulated quantity of units purchased from the beginning of each month. The step bonus pays a maximum of 12,000 (6,000 for each of your first two 6A legs) additional commission as a fast-track incentive to reach the rank of a 6A2 distributor.

5. Monthly Bonus
Back to top Must be a 6A2 Distributor (or higher) to be eligible for this bonus. 1. Basic bonus based on number of machines sold in your group (8 levels of 6As) x 15. 2. Allocation bonus based on number of machines sold in total group (A + B +C) A. Allocation based on open volume (or direct) sales in your 1A 5A group. (Tokurei NOT counted) B. Allocation based on number of machines sold in your total group. C. Allocation based on your rank. Bonus payment consists of above 1 + 2. Qualification based on direct/indirect (1A-5A) sales of 5 machines monthly.

6. International Bonus Pool

Must be a 6A2 Distributor (or higher) to be eligible for this bonus. Each calendar quarter, 3% of the total gross sales of Enagic are distributed proportionately to eligible Distributors who meet the following qualifying conditions. This bonus is paid on the 25th of the month following the end of each calendar quarter.
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Products SD 501 DX II ANESPA

Goods Price 2,780 2,280 1,680

VAT (19%) 528.20 432.20 319.20

Total Price 3,308.20 2,713.20 1,999.20

Margin EU Basic SP 145 115 85 175 140 103

Margin US Basic SP $215 $170 $130 $260 $205 $155

Margin JAPAN Basic SP 23200 28000 18400 22400 13600 16400

VAT *VAT in Europe varies and in the UK is 17.5% (485.50) for a Total Price of 3,266.50 (approx 2,528.00) SP Special Point is reached after 1st direct sale and maintained through a new direct sale within a 90 day cycle. D1 If a Distributor makes at least one direct sale within a year, s/he is qualified to receive full commissions. D0 If a Distributor makes at least one direct sale within 3 years, s/he, but no direct sale within a year, s/he is qualified to receive 50% of commissions. FA0 If a Distributor makes no sale within 3 years, s/he is not qualified to receive any commissions at all. *Please note: VAT in Europe is set at the German rate of 19% until new offices are setup in other EU Countries.

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6A

U.S. BOTTLED WATER

Volume and Producer Revenues 2000 - 2008(P)
Millions of Gallons 4,725.1 5,185.3 5,795.7 6,269.8 6,806.7 7,538.9 7,538.9 8,823.0 9,418.0 Annual % Change -9.7% 11.8% 8.2% 8.6% 10.8% 9.5% 6.9% 6.7% Millions of Dollars $6,113.0 $6,880.6 $7,901.4 $8,526.4 $9,169.5 $10,007.4 $10,857.8 $11,705.9 $12,573.5 Annual % Change -12.6% 14.8% 7.9% 7.5% 9.1% 8.5% 7.8% 7.4%

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008(P)

(P) Preliminary Source: Beverage Marketing Corporation

GLOBAL BOTTLED WATER MARKET

Leading Countries' Consumption and Compound Annual Growth Rates 2002 - 2007
2007 Rank 1 2 3 4 5 6 7 8 9 10 Countries United States Mexico China Brazil Italy Germany Indonesia France Thailand Spain Top 10 Subtotal All Others WORLD TOTAL Millions of Gallons 2002 2007 5,795.6 8,823.0 3,898.6 5,885.2 2,138.4 4,787.8 2,541.8 3,621.1 2,558.2 3,100.9 2,291.5 2,743.2 1,622.5 2,400.6 2,225.6 2,283.2 1,277.0 1,533.1 1,191.4 1,284.0 36,462.2 25,540.7 9,054.2 13,407.3 34,594.9 49,869.6 CAGR* 2002/07 8.8% 8.6% 17.5% 7.3% 3.9% 3.7% 8.2% 0.5% 3.7% 1.5% 7.4% 8.2% 7.6%

* Compound annual growth rate

Source: Beverage Marketing Corporation Page 21

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