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SOZO REVOLUTIONARYCODED BINARY SZ.US.RP.120313

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Page 1: SOZO REVOLUTIONARYCODED BINARY · CODED BINARY !! SOZO Global’s Rewards Plan has been developed to combine the strengths of the most powerful compensation plans ever assembled in

SOZO REVOLUTIONARYCODED BINARY

SZ.US.RP.120313

Page 2: SOZO REVOLUTIONARYCODED BINARY · CODED BINARY !! SOZO Global’s Rewards Plan has been developed to combine the strengths of the most powerful compensation plans ever assembled in

S O Z O R E V O L U T I O N A R Y C O D E D B I N A R Y !!

SOZO Global’s Rewards Plan has been developed to combine the strengths of the most powerful compensation plans ever assembled in the Network Marketing industry, thus creating an imaginative, innovative and REVOLUTIONARY way of rewarding our independent distributors. It has been designed with the everyday individual in mind. All compensation in the SOZO Rewards Plan is directly tied to your success in enrolling new customers and helping new distributors do the same. !!THE SOZO REWARDS PLAN PROVIDES MULTIPLE WAYS TO EARN INCOME AND EMPOWERS YOU TO BUILD A BUSINESS! !CUSTOMER ACQUISIT ION PROGRAM

Personal Sales Commissions Wholesale to Retail Retail Sales Bonus Pool !SOZO REWARDS PROGRAM

Customer Acquisition Bonus (CAB) Mentor Bonus Leadership Bonus Life Team Matching Bonus Team Commissions Leadership Check Matching Bonus !

SOZO INCENTIVE PROGRAM Health, Vision, Dental and Life Insurance Retirement Solutions (401K) Lifestyle Bonus Exotic Car Program Rank Advancement Bonus Incentive Trips !

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Page 3: SOZO REVOLUTIONARYCODED BINARY · CODED BINARY !! SOZO Global’s Rewards Plan has been developed to combine the strengths of the most powerful compensation plans ever assembled in

GETTING STARTED !To become an Independent Distributor with SOZO Global, simply enroll online or fill out an Independent Distributor application or submit a hard copy to the corporate office (888) 969-9727 FAX. Contact Customer service (888) 880-7696 or email at [email protected] with all questions. !

QUALIFICATIONS !

ACTIVE - The status of a Distributor who generates a minimum of 50BV every 28 days. !ACTIVE CUSTOMER - Someone other than a Distributor who has placed an order with SOZO in the past 28 days. !QUALIFIED DISTRIBUTOR - A Distributor who maintains active status and having personally sponsored 2 or more Active Distributors [one in each binary tree leg]. !!

A FEW QUICK TERMS !

4-WEEK ROLLING PERIOD - The current week plus the previous 3 weeks. !BINARY - The method used to calculate Team Earnings, in which Distributors are arranged in a genealogy with two legs ( left and right) and commissions are paid on the Sales Volume of the weak volume leg. !BV - Business Volume - The Retai l Sales Volume that qualif ies for both PV requirements and SV for commission calculation. !CARRYOVER SALES VOLUME - Accrued Sales Volume that was not paid out in the period it was produced. Active Distributors carry over unpaid volume. Inactive Distributors do not carry over unpaid Sales Volume. !CV - Cumulative Volume - The cumulative amount of Sales Volume from current pay period sales and Carryover Sales Volume from which commissions and bonuses are calculated. !NIRS - No Inventory Retail Sales - NIRS includes purchases made by a distributor’s personally sponsored Retail Customers who are on Recurring Order and purchases made by Retail Customers from the distributor’s replicated website. !PV - Personal Volume - The value of product personally purchased for your use or for resale. !PAY PERIOD - WEEKLY - 12:01am Sunday through Saturday Midnight Central T ime MONTHLY - Calendar Month !PREFERRED RETAIL CUSTOMER - A Retail Customer that purchases product through the Recurring Order feature. Being a Preferred Retail Customer allows Customers to purchase products at the Distributor prices. !RECURRING ORDER - An optional program that requires pre-registration by a Retail Customer or an Independent Distributor to receive on-going consistent product delivery. Independent Distributors on the Recurring Order feature will receive product delivery every 28 days to aid in maintaining Active status.

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Page 4: SOZO REVOLUTIONARYCODED BINARY · CODED BINARY !! SOZO Global’s Rewards Plan has been developed to combine the strengths of the most powerful compensation plans ever assembled in

!RETAIL CUSTOMER - A customer who is NOT an Independent Distributor that purchases products at retail pricing. !RETAIL PROFITS - As a SOZO Distributor, you will be able to purchase your SOZO products at a wholesale price to resell to your customers for a retail profit. No personal product purchases are required to participate in retail profits. !RETAIL SAMPLE PACK - A pre-designed product package that creates an efficient way for Customers to sample SOZO products. !SOZO PRODUCT STARTER PACKAGE - A pre-designed product package for Retail Customers and Independent Distributors for consumption and re-sale. !!SV - Sales Volume - The value of product as referenced in the SOZO Price Sheet and Success Center used to calculate commissions and bonuses. Sales Volume expressed in points are not necessarily equivalent to any currency value. !UNILEVEL - Personal Sponsorship Tree - All of the Distributors that you have personally sponsored, plus all those that they have personally sponsored, and so on. Your personal sponsorship tree does not include Distributors from your binary that have been placed there by a Distributor not in your personal sponsorship tree. ! !

!PLACEMENT

Placement can occur in two different ways. As the sponsoring distributor you can either specify the location in your binary tree where you want a new distributor to be placed, or you can choose to automatically place the new distributor in your binary tree through your SOZO Success Center. !INDEPENDENT DISTRIBUTOR - Distributors who enroll in the SOZO Rewards Program. The one-time cost of the program is $991 with an annual renewal fee of $39 on the anniversary date of enrollment. !Independent Distributors receive the following: !

SOZO Distributor Starter Kit Access to the company’s Independent Distributor Support Group via a toll-free number Access to the SOZO Success Center, a real-time online back office system !

SOZO CUSTOMER ACQUISITION PROGRAM !WHOLESALE TO RETAIL Selling SOZO products directly to your customers is the start of a solid foundation for your business. Person-to-Person retail sales allow you to earn income by purchasing SOZO products at the wholesale price and then selling them at a retail price. Selling products to your customers is essential to network marketing. No personal product purchases are required to participate in Retail Profits. Retail Sales profits from your replicated website are paid out weekly.

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!RETAIL SALES BONUS POOL Every quarter SOZO rewards its top retail selling Distributors with the Retail Sales Bonus Pool. The top 10 Distributors with the most in Retail Sales Volume every quar te r will qualify to earn a share of 2% of the total volume from NIRS. To qualify, a distributor must personally generate at least 500 SV in NIRS (No-Inventory Retail Sales).   1

See details on how the shares are divided at the end of the compensation plan.

!!

SOZO REWARDS PROGRAM !

CUSTOMER ACQUISITION BONUS

UNILEVEL-WEEKLY The Customer Acquisition Bonus is a bonus paid for the initial customer gathering efforts of the new Independent Distributor who has purchased a SOZO Product Starter Package. A new Distributor earns $50 when they sell $100 or more in Retail Sample Pack Sales   within the first 2

28 days of their enrollment. Alternately a new Distributor can sell $299 or more in Product Sales and sell $100 or more in Retail Sample Packs, within the first 28 days of enrollment, to earn the same rewards listed above. !!MENTOR BONUS UNILEVEL-WEEKLY The Mentor Bonus is a bonus that pays upline using the sponsorship unilevel tree. Mentoring new Distributors how to gather customers is an integral part of building your business. The sponsor of the new Independent Distributor earns $100 when a new Distributor has purchased a SOZO Product Starter Package and has obtained $100 or more in Retail Sample Pack sales within the first 28 days of their enrollment. !Alternately, your personally sponsored new Distributor can sell $299 or more in Product Sales and sell $100 or more in Retail Sample Packs, within the first 28 days of enrollment, to earn the same rewards listed above. !!

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LEADERSHIP BONUS UNILEVEL-WEEKLY The Leadership Bonus, is a bonus, that pays upline using the sponsorship unilevel tree. Leadership Bonuses are paid to those that reach Marketing Director and above. These bonuses are paid on every qualifying new Independent Distributor that has purchased a SOZO Product Starter Package and has obtained $100 or more in Retail Sample Pack sales within the first 28 days of the new Independent Distributors Start Date. !Alternately a new Distributor can sell $299 or more in Product Sales and sell $100 or more in Retail Sample Packs, within the first 28 days of enrollment, to earn the same rewards listed above. !*A Distributor who purchased a $299 Basic Product Starter Package or that has obtained less than $699 in Retail Sales within their first 28 days of enrollment must be Active with 300 BV to earn the VIP Product Starter Package Leadership Bonus. If the Distributor does NOT have the 300 BV but is Active and meets the Basic Leadership Bonus requirements, then they will receive the Basic Product Starter Package Leadership Bonus. !!!!!!!!!!!!!!!!!

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LEADERSHIP BONUS ON $299 BASIC PRODUCT STARTER PACKAGE

LEVEL DISTRIBUTOR Marketing Director

Senior Marketing Director

+ 50

Regional Marketing Director

+ 30

National Marketing Director

+ 20

MENTOR BONUS

$100 $150 $200 $230 $250

LEADERSHIP BONUS

$0 $50 $100 $130 $150

LEADERSHIP BONUS ON $599 VIP PRODUCT STARTER PACKAGE*

LEVEL DISTRIBUTOR Marketing Director

Senior Marketing Director

+ 100

Regional Marketing Director

+ 60

National Marketing Director

+ 40

MENTOR BONUS

$100 $200 $300 $360 $400

LEADERSHIP BONUS

$0 $100 $200 $260 $300

+ 50

+ 100

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LIFE TEAM MATCH BONUS UNILEVEL-WEEKLY When a Distributor reaches Senior Marketing Director (SMD) or higher, they can earn a 25% matching bonus on the Leadership Bonus earnings of their first three (3) personally sponsored Independent Distributors which we call their LIFE TEAM. When an Independent Distributor reaches SMD or higher, they earn a 25% match on their Life Teams Leadership Bonus earnings up to the sponsoring Independent Distributors current level for as long as they are currently achieving SMD or higher qualifications.

!TEAM COMMISSIONS BINARY-WEEKLY Team Commissions are paid to an Active and Qualified Independent Distributor based on the total Sales Volume accumulated in their lesser volume leg. A Team Commission of 10% is paid weekly on the lesser leg Sales Volume. The commissionable Sales Volume is calculated using all current pay period Sales Volume plus all Carryover Sales Volume accumulated from previous pay periods. !*These are maximum weekly payouts per advancement levels. These are in no way guarantees of earnings but are the maximums allowed. !!

!!LEADERSHIP CHECK MATCHING BONUS UNILEVEL-WEEKLY The Leadership Check Matching Bonus is paid to Active and Qualified Independent Distributors who achieve and maintain the rank of Regional Marketing Director and above.  The LCM bonus is derived from the funds available for distribution after other payouts are made.  The company pays 50% of Sales Volume every week.  The balance of funds remaining after the company has paid Team Commissions, the Life Team Match Bonus, health vision dental & life insurance allowances, Rank Advancement Bonuses and Lifestyle bonuses, will be placed in a pool of funds available for payout in the LCM.  This pool will be allocated and paid pro-rata based on your Unilevel team’s weekly team earnings, and will include the levels of your team based on the “Matching Bonus Generations” table below: !

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WEEKLY TEAM COMMISSION CAP*

Distributor $1,000/wk

Marketing Director $2,000/wk

Senior Marketing Director $5,000/wk

Regional Marketing Director $10,000/wk

National Marketing Director $20,000/wk

International Marketing Director $35,000/wk

Global Ambassador $50,000/wk

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!

*A Generation is defined as the first Senior Marketing Director.

!SOZO INCENTIVE PROGRAM !

!HEALTH, VISION, DENTAL & LIFE INSURANCE RANK-MONTHLY As a distributor's business grows, they can earn additional benefits from SOZO. When an Independent Distributor becomes a Marketing Director they are qualified to participate in the Distributor Health Benefits program offered by a designated third party provider. When a Distributor attains the Leadership rank of Sen io r Marketing Director or higher they will be able to receive a bonus that reimburses the qualified Independent Distributor for their Health, Vision, Dental and Life Insurance*. They must maintain all qualifications, including vo lume requ i remen ts as ou t l i ned i n t he Rank and Qua l i f i ca t i ons to continue the monthly reimbursement. !Reimbursements will be made upon verification of enrollment by a designated third party provider. Benefit details and reimbursement amounts can be found in the Distributor Benefits Handbook. !!!!RANK ADVANCEMENT BONUS RANK-WEEKLY As an Independent Distributor's business grows, they can earn a one time Rank Advancement Bonus. In order for a distributor to qualify, they must simply attain the qualifications for their achieved rank. [Senior Marketing Director and above] !SENIOR MARKETING DIRECTOR - $1,000 REGIONAL MARKETING DIRECTOR - $5,000. NATIONAL MARKETING DIRECTOR - $20,000 INTERNATIONAL MARKETING DIRECTOR - $35,000 GLOBAL AMBASSADOR - $50,000

!

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MATCHING BONUS GENERATIONS

Regional Marketing Director Paid to one (1) generation

National Marketing Director Paid to two (2) generations

International Marketing Director Paid to three (3) generations

Global Ambassador Paid to five (5) generations

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LIFESTYLE BONUS PROGRAM RANK-MONTHLY Once an Independent Distributor has achieved the Leadership rank of Regional Marketing Director they can earn a Lifestyle Bonus of $500 per month to be used at their discretion. The Lifestyle Bonus will increase to $1000 per month at the rank of International Marketing Director. To continue to receive the Lifestyle Bonus, Distributors must maintain all qualifications and must achieve the corresponding “Paid As” rank at least twice during the calendar month. !!EXOTIC CAR PROGRAM RANK-ONE TIME Once a Distributor has achieved the rank of Global Ambassador they can participate in the SOZO Exotic Car Program. See Car Program for specific details.

!NATIONAL DIRECTORS INCENTIVE TRIPS RANK-ANNUAL When a Distributor attains the rank of National Marketing Director they will qualify for an annual National Directors Incentive Trip – an all-expense-paid trip for two to an exotic resort. Thereafter, you may attend annually if you are paid as a National Marketing Director or above for at least 60 percent of the weeks in the trips qualifying period. ! !!!!!!!!!!!!!!!!!!!

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Page 10: SOZO REVOLUTIONARYCODED BINARY · CODED BINARY !! SOZO Global’s Rewards Plan has been developed to combine the strengths of the most powerful compensation plans ever assembled in

RANKS & QUALIFICATIONS !

DISTRIBUTOR - Enroll online or submit application for the $99 SOZO Rewards Program. To receive commissions a Distributor must be Active with a minimum of 50 BV.!!MARKETING DIRECTOR (MD) - Must be Active with a minimum of 100 BV, Qualified, has personally sponsored three (3) Active Independent Distributors, and has acquired a minimum of 50 NIRS SV during the 28 day qualifying period.!!SENIOR MARKETING DIRECTOR (SMD) - Must be Active with a minimum of 200 BV, Qualified, has personally sponsored a minimum of three (3) Active Independent Distributors in his/her Marketing Director Organization [meaning he/she has sponsored three (3) Active Independent Distributors after attaining the rank of Marketing Director], has developed ten (10) Marketing Directors in the Marketing Director Organization, and has a minimum of 100 NIRS SV during the 28 day qualifying period. To receive the incentive bonuses, a SMD must maintain the “Paid As” rank of Senior Marketing Director by achieving and maintaining a minimum 8,000 gross weak leg CV during the qualifying calendar month.   !REGIONAL MARKETING DIRECTOR (RMD) - Must be Active with a minimum of 200 BV, Qualified, has personally sponsored a minimum of three (3) Active Independent Distributors in his/her Senior Marketing Directors Leadership Organization [meaning he/she has sponsored three (3) Active Independent Distributors after attaining the rank of SMD], has created at least four (4) Senior Marketing Directors in their Senior Marketing Directors Leadership Organization, has a minimum of 150 NIRS SV during the 28 day qualifying period. and has 10,000 Gross Weak Leg Binary Tree CV [Cumulative Volume] for 2 consecutive weeks. To receive the incentive bonuses and the Leadership Check Matching Bonus, a RMD must maintain the “Paid As” rank of Regional Marketing Director by maintaining a minimum of 20,000 gross weak leg CV during the qualifying calendar month and at least 150 NIRS SV for a minimum of two (2) weeks of the qualifying calendar month. !NATIONAL MARKETING DIRECTOR (NMD) - Must be Active with a minimum of 200 BV, Qualified, has personally sponsored a minimum of three (3) Active Independent Distributors in his/her Regional Marketing Director Leadership Organization [meaning he/she has sponsored three (3) Active Independent Distributors after attaining the rank of Regional Marketing Director], has created at least four (4) Regional Marketing Directors in the RMD Leadership Organization, has a minimum of 200 NIRS SV during the 28 day qualifying period, and has 20,000 gross weak leg Binary Tree CV (Cumulative Volume) for 4 consecutive weeks. To receive the incentive bonuses and the Leadership Check Matching Bonus, a NMD must maintain the “Paid As” rank of National Marketing Director by maintaining at minimum of 40,000 gross weak leg CV during the qualifying calendar month and at least 200 NIRS SV for a minimum of two (2) weeks of the qualifying calendar month.

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!!INTERNATIONAL MARKETING DIRECTOR (IMD) - Must be Active with a minimum of 200 BV, Qualified and has personally sponsored a minimum of three (3) Active Independent Distributors in his/her National Marketing Directors Leadership Organization [meaning he/ she has sponsored three (3) Active Independent Distributors after attaining the rank of National Marketing Director] has created at least four (4) National Marketing Directors in their National Marketing Directors Leadership Organization with no more than two (2) of the qualifying NMD’s coming from the same personal lineage leg, has a minimum of 250 NIRS SV during the 28 day qualifying period, and has 50,000 gross weak leg Binary Tree CV (Cumulative Volume) for 4 consecutive weeks. To receive the incentive bonuses and the Leadership Check Matching Bonus, you must maintain the “Paid As” rank of International Marketing Director by maintaining the minimum 50,000 gross weak leg CV and at least 250 NIRS SV for a minimum of two (2) weeks of the qualifying calendar month. !GLOBAL AMBASSADOR - Must be Active with a minimum of 200 PV, Qualified and has personally sponsored a minimum of three (3) Active Independent Distributors in his/her National Marketing Directors Leadership Organization [meaning he/she has sponsored three (3) Active Independent Distributors after attaining the rank of National Marketing Director] has created at least eight (8) National Marketing Directors in their NMD Leadership Organization with no more than two (2) of the qualifying NMD’s coming from the same personal sponsorship lineage leg, has a minimum of 300 NIRS SV during the 28 day qualifying period, and has 100,000 gross weak leg binary Tree CV (Cumulative Volume) for 4 consecutive weeks. To receive the incentive bonuses and the Leadership Check Matching Bonus, you must maintain the “Paid As” rank of Global Ambassador by maintaining the minimum 100,000 gross weak leg CV and at least 300 NIRS SV for a minimum of two (2) weeks of the qualifying calendar month. !!1- The $99 enrollment fee includes 6 months of the SOZO Success Center back office fees. After 6 months of the Independent Distributor’s Start Date a monthly Success Center fee will be billed. !2- The initial Retail Sample Packs up to $100 sold by an Independent Distributor will have a SV of 0. Every Purchase or sale after that will carry the appropriate SV as shown in the SOZO Success Center. !An Independent Distributor will be downgraded to a Preferred Retail Customer after 6 months of sponsoring inactivity. They will continue to enjoy the wholesale pricing on the SOZO products and will not be required to pay the $9.99 SOZO Success Center back office fees. Several notification attempts will be made to ensure the Independent Distributor is aware of the reclassification. !Be sure you have the required NIRS SV by each ending pay period to be paid at your leadership level. Don’t miss out on earnings; always have more Preferred Retail Customers than required. If your NIRS SV is less than your qualification requirements, a 30 day grace period will begin and you will be paid all commissions and bonuses earned, UNLESS the previous qualification was a grace period. You will NOT be paid all commission and bonuses at the current qualified leadership level when you have two (2) consecutive months of missed NIRS SV. A preferred Retail Customer must be enrolled in the Recurring Order program and purchase a minimum of 50 SV. !Overall Payout Rules Along with the Team Commissions earning cap of $50,000 weekly and the individual leadership rank earning caps, there is a general payout cap of 50% of total SV (Sales Volume) on the collective payout throughout the entire Rewards/Compensation Plan. !Bonuses and Commissions listed within this Rewards Plan document are the maximum limits eligible for each rank shown and are based strictly on individual performance. SOZO does not pay more than 50% of total weekly company wide Sales Volume into the Compensation Plan structure. The 50% Sales Volume commission cap payout has been put in place to ensure the long-term viability of SOZO Global Inc. No commissions are paid for the recruiting of new Distributors. Commissions are only paid on the sale of products. !A product purchase is not required to become a SOZO Distributor. SOZO makes NO GUARANTEES of income and results depend solely on the efforts of each individual Distributor. This document is designed to offer an overview of the benefits offered by SOZO to those individual Distributors who put in the work necessary to build a successful SOZO business. !SZ.US.RP.120313 �11

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Unpaid Binary Sales Volume for Active Distributors carries over up to a maximum of 1 Million SV per binary leg. !!!!!!!!!!

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