Non pyramid selling scheme declare

Date: 06/05/2013

In our opinion, the distribution scheme would not fall under the definition of a “pyramid selling scheme or arrangement” as Enagic’s distributors do not in fact acquire any commodity nor does it acquire a right or licence to acquire any commodity for sale, lease, licence or other distribution.  Based on our understanding from the Documents, distributors act as “order takers” and they are not allowed to purchase Enagic’s products for resale.  Therefore, the sale and purchase transaction always remains between Enagic and purchaser of Enagic’s Products.