Founding Story
Nutrazon International, Inc. (www.mlmlegal.com) is a subsidiary of a ten-year-old, debt-free company based out of southern California. 

Impact on the Industry
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Discussion of Products
Nutrazon Super Juice is a one-shot product that provides a blend of extracts from the rain forests of South America. The products assists customers in feeling more relaxed, having increased endurance, increased sexual function, enhanced memory, balanced blood sugars, and reducing weight.

Discussion of Opportunity

The company offers the following compensation (www.mlmlegal.com) plan:

Optional Fast Start Bonus Program

The Optional Fast Start Bonus Program for Nutrazon® is the key to getting new IMAs into immediate action. From the day you enroll and purchase one of the optional Fast Start Packs, you are immediately qualified for Fast Start Bonuses.

Sponsor Fast Start Bonus:

When enrolling as a new Independent Marketing Associate (IMA) with Nutrazon® you have the option of purchasing one of two Autoship Fast Start Packs. Purchase the “Pro” pack - two cases (8 Bottles) during your first 60 days for just $240 (200 CV). Purchasing a Family Fast Start Pack prior to the end of your first 30 days of enrolling will automatically qualify you to earn Fast Start Bonuses as described below for that Pay Period.
Now that you are on Autoship you may participate at one of two levels, either Fast Start Bonus “Plus” Standard Pack or Fast Start Bonus “Pro” the

Family Pack.

Standard Pack Fast Start Bonus "Plus" - Standard Pack - one case (4 bottles):

Qualification

1. Purchase Optional $120 Standard Pack Fast Start Autoship.

Benefits

1. Begin earning 40% on Optional Fast Start Pack sold plus 40% on your sponsored IMAs PV addtional purchases during the same 60-day period.

Maintenance

1. Monthly Autoship Order of 100 CV (Commission Value).

Family Pack Fast Start Bonus "Pro" - Family Pack - two cases (8 bottles):

Qualification

1. Purchase Optional $240 Family Pack Fast Start Autoship.

Benefits

1. Begin earning 40% for each Optional Fast Start Pack sold plus 40% (www.mlmlegal.com) on your sponsored IMAs PV addtiional purchases during the same 60-day period.

2. Level 2 through Level 5 bonuses of 5% on Fast Start CV during your personally sponsored IMAs first 60 days.

Maintain

1. Monthly Autoship order of 200 PCV.

Provided that you have qualified as described above, when you directly enroll a new Independent Marketing Associate that purchases a Fast Start

Pack within their first full 30 days of enrolling, you will receive a 40% Sponsor Fast Start Bonus.

Maintain Fast Start Bonus Qualified:

After your first 60 days it is important to remain Qualified as either Fast Start Bonus "Plus" or "Pro" so you continue to earn 40% of all new customers and all Fast Start Bonuses. To do this as a Fast Start Bonus "Plus", you must be on Monthly Autoship for 100 CV. For Fast Start Bonus "Pro" you must be on 200 CV Autoship.
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Business Builder Compensation Plan with Full Dynamic Compression

Profit Centers

1. Earn 20% Retail Profits on all new product purchased.

2. Earn High Volume Producer Bonus of an additional 20% of Retail Volume on Individual Orders over $800

3. Preferred Customer Program

4. Earn 51% Commission Value (CV) through Nine Levels of downline IMA volume with Full Dynamic Compression

5. Share in 8% total Company CV Leadership Bonus Pool

Residual Volume:

Upon completion of the 60 day Fast Start Cycle and beginning on day 61 and thereafter, all new customers and IMA's CV is credited to the Business Builders Comp Plan.

Retail Profits:

As an Independent Marketing Associate ("IMA"), you have purchased the Nutrazon IMA Kit for $35, which contains everything you need to get started.

As an IMA you earn 20% Retail Profits on all Personal Commission Value (PCV) you create. This also applies to all volume created by customers and IMA's after their initial 60 days in the business.

High Volume Producer Bonus:

All retail volume produced by an IMA including that of their retail customers and for personal consumption above 800 GCV Retail Volume (Not including monthly qualifying orders) in any calendar month will generate an additional retail commission of 20% as a High Volume Producer Bonus.

This allows for increased income potential for those individuals that combine their creative marketing ability with hard work.Example: As long as the IMA has created their initial 800 GCV in retail value sales during the qualifying month, they would be eligible for this bonus. If an IMA has a total Retail volume for the month of $2,000, they would have received a 20% discount as a retail profit on the entire retail amount. The $1,250 retail volume in excess of the 800 GCV dollar threshold will generate an additional 20% of retail commission rebate for a total of 40% on that volume.Building retail customers is the foundation of growing a strong distributorship and this special incentive rewards that activity while increasing the overall volume for all the upline sponsors. In order to support this special bonus for high volume producers, all volume over the 800 GCV retail volume in a pay period will be assigned a Bonus Value equal to 50% of the wholesale after the initial 20% discount and the 20% High Volume Producer Bonus.

$2,000 Retail Volume less 40% = $1,200 wholesale

CV = 51% or $612 to accrue to the benefit of the upline

The Sponsor Relationship and Placement Relationships:

As an additional means for you to help others in your downline Sales Organization succeed and thereby help yourself, Nutrazon tracks two different types of relationships among its Independent Marketing Associates: the "Sponsor relationship"; and, the "Placement relationship":

• A Sponsor is an existing Independent Marketing Associate of any rank that first explains the Nutrazon business opportunity to a potential new IMA, and subsequently helps them to enroll as an IMA. The Nutrazon computer thereby recognizes a "Sponsor relationship" between these two IMAs and maintains it accordingly.

• Placement IMA is an IMA of any rank who is immediately upline from a new or existing IMA, and is generally responsible for the day-to-day coaching, encouragement and assistance of the IMA immediately below them. The computer system recognizes a "placement relationship" based on the placement positioning between these two IMAs and maintains it accordingly.

Obviously, the Sponsor and the Placement of a new IMA can be the same person, though they do not have to be. With this dual relationship tracking system, when you enroll a new IMA, you can elect to place the new enrollee under another IMA anywhere in the Company Sales Organization, (www.mlmlegal.com) and the IMA that you place the new IMA under will become the "Placement" for the new IMA.

THE NUTRAZON PREFERRED CUSTOMER PROGRAM

We recognize that many of the customers who will benefit from Nutrazon and would prefer the convenience of buying products directly from the Company but without the need to become a participant in our business opportunity. In order to accommodate these people, we have created the Preferred Customer Program. They can simply enroll through an active IMA as a Preferred Customer and place their first order for Nutrazon products (Minimum $40). Now, your Preferred Customers can be eligible for a number of exciting benefits as well as special offers only available to members.

BUILD YOUR LIFETIME CUSTOMER BASE THROUGH THE PREFERRED CUSTOMER AUTOSHIP PROGRAM

Your customers will find that the maximum benefit for inner and outer beauty and health will be best achieved through the use of an ongoing regimen of Nutrazon products. We can accommodate these Preferred Customers by automatically shipping a monthly supply of pre-selected Nutrazon products via our "Autoship" Program. Accordingly, enrolling as an Autoship Customer allows them to enjoy the convenience of timely delivery to their home or office at the Suggested Retail Price of their pre-selected products. (Minimum AutoShip order is $40.00)The exciting thing is that Nutrazon will service these customers on your behalf. That means no product to stock or deliver and no bookkeeping. And best of all, we will provide all this and more in serving your customers while still paying you a 20% retail commission on all their orders.

Management Phase

Management Bonuses:

As mentioned previously, when you begin sponsoring, creating and placing other new IMAs into the Nutrazon Business Opportunity, you will begin building a sales Group (Downline). The Nutrazon Compensation Plan provides Management Bonuses based upon the Personal Commission Value (PCV) of up to nine (9) qualified levels of IMAs in your downline Group. As your downline Group and Total Group Commission Value increases, you become eligible to advance in "rank", and correspondingly, the percentage per level and the number of levels in your downline Group that you can receive bonuses from also increases. (See Table 3 below).

• AN ACTIVE LEG CONTAINS 300 CV ANYWHERE IN THE DEPTH OF THE LEG
  
  
• FULL DYNAMIC COMPRESSION IS APPLICABLE ON UNILEVEL
  
  
• COMPRESSION AND ROLLUP ARE NOT APPLICIBLE ON BONUS
  
  
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  DYNAMIC COMPRESSION: Full compression and roll-up on every level from the very beginning! You are always assured maximum payout always!
  
  *Qualified Distributor: Create 40 CV during the qualifying month.
  
  **Qualified Preferred, Bronze, Silver & Gold - Subscribe to 100 CV Autoship order.
  
  ***Qualified Platinum & 1 Star Diamond, 2 Star Diamond and Crown Diamonds - Subscribe to 200 CV Autoship order.
  
  **** Group Commission Value (GCV)
  
  
  
  *Qualified Platinum, Diamonds, 1 Star Diamond, 2 Star (www.mlmlegal.com) Diamond and Crown Diamonds - Subscribe to 200 CV Autoship.
  
  **Total Group Commission Value (GCV) is all volume created downline to unlimited depth. As it pertains to Bronze IMAs or higher titled people, no more than 51% Total Group Commission Value may be applied from any one Leg for the purpose of meeting this qualification.
  
  ***The Leadership Bonus: 1 Star Diamonds and higher share in the Leadership Bonus as per their qualified rank, in the Company's entire Gross CV as outlined below.
  
  National Leadership Bonus Pool
  
  Leadership Bonus Pool:
  
  A Leadership Bonus will be paid to all Qualified 1 Star, 2 Star and Crown Diamonds; 8% of the company's total gross CV will be put into a Bonus
  
  Pool each month then divided up and paid every quarter as follows:

• 1-Star Diamond: 2% is divided and paid Pro-Rata to all Qualified 1 Star Diamonds
  
  
• 2-Star Diamond: 3% is divided and paid Pro-Rata to all Qualified 2 Star Diamonds, plus their Pro-Rata 2% divided and paid to all Qualified 1 Star Diamonds
  
  
• Crown Diamond: 3% is divided and paid Pro-Rata to all Qualified Crown Diamonds, plus their portion of the 3% divided and paid Pro-Rata to all Qualified 2 Star Diamonds, and their portion of the Pro-Rata 2% divided and paid to all Qualified 1 Star Diamonds

Glossary of Terms

ACTIVE : An Independent Marketing Associate ("IMA") is considered "Active" in a particular pay period that you maintain the minimum Personal Commission Value requirement applicable to all Independent Marketing Associates.

APPLICATION AND/OR AGREEMENT FORM : This is a legal binding agreement between you and the Company, which covers your rights, duties, and responsibilities and those of the Company. This is vital and necessary information. The Policies & Procedures manual is an extension of this Agreement and should be read carefully.

BLOCKABLE : Able to be blocked, as referring to the Downline Commissions. These Commissions are fixed rate Commissions. This means the Company only pays a fixed rate per transaction. For example, the maximum amount of Platinum the Company will pay for a given sale from a Bronze
IMA is Level 4-5%, Level 5-6%, level 6-6%, that is 17% that rolled up or compressed. The Company cannot pay that same 17% to two people. Therefore, Generation 1 stops where it is "blockable" by another IMA that qualifies for the same Commission. The Blocking IMA would then receive the Commissions on the applicable Commission. Value of his or her Downline until blockable by another IMA qualifying for the same Commission. (See "Personal Organization")

BONUS : Not to be confused with Commissions. This is the remuneration that is based on the percentage of sales volume of others, downline of the payee, in accordance with the respective provisions of the Compensation Plan.

BONUS QUALIFIED : You are Bonus Qualified when you are an Independent Marketing Associate in good standing and have met the minimum personal Commission Value requirements for the applicable pay period.

COMMISSION VALUE (CV) : The assigned dollar value for qualification and calculation of bonuses on the products purchased. The accumulated CV during a pay period is combined to determine your "Personal Commission Value" (PCV). PCV and Group CV (GCV) are used to calculate various (www.mlmlegal.com) compensation as well as rank qualification and maintenance.

IMA KIT : Tools, forms, tapes, brochures, manuals and application forms, relative to the Nutrazon business opportunity, needed to begin your new business.

COMMISSION : Although it is profit, the difference in the amount of money that an Independent Marketing Associate earns when a product is sold at retail but purchased at wholesale is Commission. This should not to be mistaken as a Bonus. Some companies call a bonus a commission. It is important to understand the difference.

COMPANY : The Nutrazon corporate or home office.

COMPENSATION PLAN : (Sometimes called the "Marketing Plan") The official set of definitions and performance requirements, as published in The Nutrazon Independent Marketing Associate Manual by which The Nutrazon pays Independent Marketing Associates.

COMPRESSION : Bonuses are earned by, and paid to, IMA that are Bonus Qualified. When an IMA fails to meet the minimum maintenance requirements for earning bonuses at his/her titled position, the Company's computer searches upline until it finds a Bonus Qualified IMA who is eligible for that position or higher, no matter how far upline it has to search. The volume then "Compresses" past all non-Active IMAs in the Downline until it has satisfied its payout requirements with qualified IMA levels or Generations. The term "Compression" is used to describe the temporary condition that occurs when someone fails to meet the maintenance requirements for a particular pay period and the term. (See "Rollup")

DIRECT : Refers to an IMA that you have personally and directly enrolled. (See "Leg")

DOWNLINE : Those people directly sponsored by an IMA, plus all the people whose line of sponsorship resulted from and came through that IMA. Your Downline consists of all IMAs on your Level 1, Level 2, Level 3, etc, through unlimited depth. (See "Level")

ENROLLEE : A newly enrolled Independent Marketing Associate, ("IMA").

FAST START QUALIFIED : An IMA that has created the designated accumulative Personal Commission Value or that has purchased an "Optional" Fast Start Pack will be qualified to participate in the Fast Start Bonuses.

FRONT LINE : Refers to all IMAs that are personally sponsored and/or placed at (Level 1) by a particular IMA or by the Company. (See also "Direct")

GENEALOGY : The complete set of relationships (as defined by "Levels" and "Legs") between an IMA and his or her upline and Downline. It is the "family tree" of any IMA.

GENEALOGY REPORT : A computer printout of your Downline.

I.D.# : The identification number used by the Company to identify each Independent Marketing Associate for Compensation Plan purposes.

HIGH VOLUME PRODUCER BONUS : All retail volume produced by an IMA including that of their retail customers and for personal consumption above $800 Retail Volume in any calendar month will generate an addition retail commission of 20% as a Higher Volume Producer Bonus. This allows for increased income potential for those individuals that combine their creative marketing ability with hard work.

INDEPENDENT MARKETING ASSOCIATE : Also known as an IMA. The generic name for an independent contractor who has signed an Independent Marketing Associate Application and Agreement form with the Company, and whose Independent Marketing Associate Application and Agreement the Company has accepted. Upon acceptance of such Agreement by the Company, an Independent Marketing Associate is eligible to purchase the Company's products at a wholesale price for resale and can enroll and sponsor other people into their Downline retail Sales Organization. An Independent Marketing Associate is eligible to earn Commissions and Bonuses in accordance with the terms and provisions of the Compensation Plan.

INDEPENDENT MARKETING ASSOCIATE WHOLESALE PRICE : (www.mlmlegal.com) The price charged to Independent Marketing Associates by Nutrazon for the Company's products. When a product is purchased at Independent Marketing Associate Wholesale and sold at Suggested Retail, the Independent Marketing Associate earns a profit. (See "Bonus Volume", "Group Commission Value" and "Personal Commission Value")

INDIRECT : All Independent Marketing Associates in your Downline that are not directly enrolled by you. (See also "Downline").

LEADERSHIP BONUS : 1 Star, 2 Star and Crown Diamonds Earn Bonuses from 2% up to 8%, based on their Rank pro rata, and paid quarterly. 1 Star shares 2%; 2 Star shares 2% & 3% (5%); Crown Diamonds share 2%, 3% & 3 % (8%)

LEG : Each personally sponsored Independent Marketing Associate on your first level is part of your total Downline and is a separate "Leg." You and your entire Sales Organization (Downline) are one "Leg" to your sponsor.

LEVEL : The people placed directly under you are your first level. The ones placed under your first level are your second level, etc. Level Bonuses pay on their personal sales.

MAINTENANCE : The standard of performance involving an Independent Marketing Associate that is required for that Independent Marketing Associate to continue being "Paid As" a particular rank after meeting the initial qualification requirements for that rank.

MARKETING PLAN : In Network Marketing this is also known as the Compensation Plan. It is usually depicted in a graphic manner in a promotional brochure and in detail in the Company's manual.

MULTI LEVEL MARKETING (MLM) : Another name for network marketing. (See "Network Marketing")

NETWORK MARKETING : A non-storefront type of selling where a manufacturer, or its IMA (a network marketing company) sells directly to the consumer through a "network" of independent contractors rather than through conventional outlets. IMAs multiply themselves directly and indirectly by sponsoring other IMAs and are paid accordingly on multiple levels.

OPPORTUNITY MEETING : A periodic meeting, or gathering of Network Marketing IMAs for the purpose of introducing and explaining the business opportunities to prospects.

OPTIONAL STANDARD PACK : This Optional $120 (100 CV) Standard Pack of Nutrazon Product is one case (4 bottles).

OPTIONAL FAMILY PACK : This Optional $240 (200 CV) Family Pack of Nutrazon Product is two cases (8 bottles).

PAID AS : IMAs that have earned the various title designations according to their sponsoring and sales performance will retain those titles indefinitely even if they do not meet the specified bonus qualifications in a pay period. However, they will be PAID AS the level at which they meet bonus qualifications for the pay period.

PERSONAL COMMISSION VALUE (PCV) : The accumulated Commission Value of all products purchased by you, along with the CV of all products purchased by any retail customers who you have personally enrolled is combined during a given pay period to determine your "Personal Commission Value" (PCV) for that pay period.

PERSONAL GROUP : For purposes of this Compensation Plan, a Personal Group consists of an Independent Marketing Associate at the top of a Sales Organization, and every IMA below that person in that Organization, through each and every Leg.

PLACEMENT : An IMA who agrees to be responsible for helping and developing another IMA with his business by teaching the new IMA how to do the business, and by assisting, encouraging and supporting him. Every IMA must be sponsored, either by another IMA in good standing with the Company, or by the Company itself. As consideration for being the PLACEMENT, the IMAs may earn bonuses based on the PCV of the Independent Marketing Associates in their Downline to the extent that the Sponsor is qualified. It is important to note that in some other Network Marketing companies, the term "PLACEMENT" may include the act of introducing prospective new IMAs to the opportunity and helping them sign up as new IMAs. In Nutrazon, this person is called the "SPONSOR". While bonuses may be earned for being (www.mlmlegal.com) the PLACEMENT, no payment is ever made for recruiting or enrolling. (See "Enroll").

POLICIES & PROCEDURES : The governing rules of Nutrazon that define the relationship between the Company and its IMAs, as well as between IMAs and other IMAs. The Policies & Procedures are specifically incorporated into and made a part of the IMA's Agreement, which each IMA must sign in order to enroll.

PROSPECT : A person to whom you want to offer the Nutrazon business opportunity.

RANK : A new title is claimed at each level with increased percentages of bonus participation. You will always carry the title of the highest rank you reach, but are paid at the rank for which you qualify each month.

RECRUITING : Inviting others to join your organization to share the same opportunity.

RENEWAL : Nutrazon IMAs must renew their IMA Agreement each year no later than the anniversary date of their joining the Company. If an IMA does not renew their relationship with Nutrazon, they will be dropped from the computer files and any sponsored or enrolled IMAs will be moved up to the next active IMA. If they wish to rejoin Nutrazon at a later date, they may not reclaim their previous rank or Downline, but must join at the standard entry level in the program. (See "Roll-up")

RETAIL : Sales of the Nutrazon products to the end users of those products. Retail sales are the foundation of your Nutrazon business, and the ultimate purpose of all other activities within the business, including enrolling, sponsoring, training, etc.

RETAIL COMMISSION : Regardless of your rank, you have the opportunity to purchase and sell products and services and receive a retail commission on all of the Nutrazon products and services.

ROLL-UP : The permanent form of Compression. When an IMA terminates his IMA Agreement or does not exercise his yearly renewal, his entire Downline rolls upline to his sponsor or the next qualified person and his name is deleted from the Company records. (See "Compression").
70% RULE : Seventy per cent (70%) of products obtained from Nutrazon must be retailed or consumed before reorders are made. (See Policies and Procedures)

SALES ORGANIZATION : Your Sales Organization consists of you and the people that you directly enroll as IMAs, and the people that they enroll as IMAs, and so on, and so on, and so on. There is no limit to how wide or deep that your Sales Organization can grow. (See "Downline" and "Leg")

SPONSOR : To sign and submit an IMA Application and Agreement form to Nutrazon for the purpose of becoming an IMA for the Company.

SUGGESTED RETAIL PRICE : The retail price as suggested by the Company. An IMA may sell the product or service for whatever price he or she chooses.

UNLIMITED DEPTH : As used in this Compensation Plan, the term "unlimited depth" describes any number of levels in depth that is not blocked by another Independent Marketing Associate of equal or higher rank.

UPLINE : The term "upline" refers to that portion of either your Sponsor or Placement genealogy that precedes you. Your upline consists of the Independent Marketing Associate who is your Sponsor and/or Placement IMA, and his Sponsor and/or Placement IMA, and his Sponsor and/or Placement IMA, etc., all the way to the Company. (See also "Sponsor")

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For additional information, one must contact the (www.mlmlegal.com) company.

Discussion of Distributor Base and Sales Volume in U.S.
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