To: Boquacious who wrote (219 ) 7/23/2000 9:34:18 AM From: Boquacious Read Replies (1) | Respond to of 445 frm their home page: DISTRIBUTION CHANNELS Vista InterNatural Products I Inc. is a multi?level direct marketer utilizing what it believes to be a unique plan of compensation under its Trademark of ComBINARYTM. This is a version of the customary binary plan of compensation used by many multi?Ievel direct marketers, under its ComBINARYTM Plan. VIP's Sales Associates pay a $15 Application Fee in order to be able to buy its products at Associate Cost, which is a 25% to 35% discount from the retail price set by VIP for it products. Associates must purchase $100 of products each month in order to continue in that capacity. The Sales Associates in this network are encouraged by VIP to recruit other Associates to sell under them, for which VIP will pay the recruiters commissions upon the sales made by the Associates they recruit. Associates may establish Royalty Positions for each Associate they recruit and receive a 5% royalty on the products purchased by each Royalty Position and all down line purchases under each Royalty Position. Commissions are paid weekly on the pay level achieved by each Associate for that week. Each Royalty Position also constitutes a ComBINARYTM Leg which may be combined to produce higher commissions on four levels of purchases as illustrated in the table set forth below. Level ComBINARY Legs Commission 1 $ 400 $ 400 $ 100 2 $ 1,800 $ 1,800 $ 300 3 $ 3,300 $ 3,300 $ 300 4 $ 5,000 $ 5,000 $ 300 Total Commissions $ 1,000 Product Volume accumulates each week. and does not wash until the sponsoring Associate has gone through all four commission levels. There is no limit to how many legs an Associate may sponsor and receive commissions. Any number of legs may be combined to earn the highest qualifying level. Qualifying legs are determined by volume and not by position. VIP's ComBINARYTM Plan will automatically combine the legs to produce the highest commission possible. To the knowledge of VIP's management its ComBINARYTM Plan produces higher commissions than the binary plans of other multilevel direct marketing networks with which VIP is familiar.