AFFILATE PROGRAM

MARKETING PLAN

I. General

The DENAS MS Corporation is a young efficiently developing network cor­ poration. The Corporation deals with the exclusive product — DENAS device, a two-band, electric neuroadaptive stimulator and an efficacious non-pharma- cotherapy cure having a European standard certificate.

The marketing plan of the DENAS MS Corporation is a system of remunera­ tion which enables the distributors to earn by means of selling the device and supplying the potential customers with information on the device. The maximum achievements can be made by properly organizing the network of efficient distributors.

II. TERMINOLOGY

Career Score — a conventional unit used to measure the distributor's work­ load. Each product possesses a definite money value and the corresponding score equivalent indicated in the price-list.

Personal Workload (PW) — a sum of career scores acquired after personal sales.

Network Load (NL) — a sum of career scores added after sales of all distrib­ utors of your structure.

Personal-Group Workload (PGW) — a sum of career scores of personal and network loads.

Bonus — an award paid by the Corporation for definite qualifying require­ ments.

Network Coefficient (C) — a relative share of the network discount for the qualifying level of the distributor.

Summary Network Coefficient (SC) — less or equal to 60-variable which shows the sum of network coefficients in the distributors' network. SC is applied to calculate the network discount.

III. MARKETING PLAN

Participation in the financial and health care program of the Corporation re­ quires of a person to purchase the device at the retail price and fill in the Appli­ cation for Cooperation,

• the number of your Application for Cooperation being one and only com­
puter number which accumulates your career scores;

• your number immediately displaying 30 incentive career scores (for the
Application for Cooperation).

The marketing plan of the Corporation provides for two types of discounts:

1. Direct discount makes 60 euro for the sale of one device and is applicable only to the distributor who sold it.

2.Network discount makes 60 euro for the sale of one device and is applica­ ble to the vertically ranking distributors in compliance with the following rules:

• the maximum number of distributors for the discount equals 7 (seven);

• the calculation of the network discount is made by the sponsors closer to
the distributor with different levels, but higher than that of the distributor who
sold the device (see comments).

The sale of one European standard DENAS device gives 150 career scores to the distributor and his ranking sponsors.

Table 1.

* 60 days mentioned in Table 1 are calculated from the date of sale for which the network discount is made.

** When distributors pass over from Level V to Level VI, the financial depart­ ment checks the accomplishment of the Level V terms. If the terms are not ful­ filled, the whole network structure of a given distributor "rises" to the immediate ranking sponsor, while the former quits his first line.

*** When the distributor of Level VI accumulates PGW=100,000 scores, the financial department also checks the availability in his first generation of 5 dis­ tributors of Level IV and higher. If the term is not fulfilled, the whole network structure of the said distributor "rises" to his immediate ranking sponsor, and he quits his first line.

"The sale of this item may be subject to regulation by the U.S. Food and Drug Administration and state and local regulatory agencies. If so, do not bid on this item unless you are an authorized purchaser.