The Defendants did not pay the above fines.

Defendant

A is the head of the 3rd Education Center of the F Co., Ltd. in building in Songpa-gu Seoul Metropolitan Government (hereinafter referred to as the “instant company”), a multilevel marketing company registered in Seoul Metropolitan Government, and Defendant B is the head of the 5th Education Center of the instant company.

1. From May 2008, the Defendants, G, H, I, and J had been tried to commit a violation of the Door-to-Door Sales Act, etc. at the Seoul Songpa-gu Seoul Metropolitan Government District Court around June 2009 on the grounds that they worked together with the multilevel marketing company, which is a multilevel marketing company located in the building in Songpa-gu Seoul, and were aware of the fact that the representative L was tried to commit a violation of the said Act on Door-to-Door Sales, etc., at the Seoul East East Branch District Court around June 2009, G led to the crisis facing the organization. At around October 2009, G led to the establishment of F, a multilevel marketing company, a multilevel marketing company.

2. Organization and operation;

A. The Defendants: (a) transferred the subordinate organization already managed by K to the instant company; (b) maintained the instant company’s representative director G 200 million won; (c) paid the incorporated capital of the instant company by securing KRW 100 million by Defendant A and Defendant B; (d) paid the lowest class sales staff; and (e) the payment system for allowances was formulated by the first step top class sales staff (SP) 3% of the first step top class sales, the second step top class sales staff (GP) 7% of the first class sales; (c) the third step top class sales staff (GP) 7% of the first class sales; and (d) the third step top class sales staff (MP) 12% of the first class sales; and (e) the top class sales staff (SP) SP 3% of the first class sales staff (SP), other than the educational allowances, and (e) paid the same allowances for fostering non-independent groups and non-independent group promotion allowances.

B. Representative G manages the purchase, sale, and management of goods as the representative director of the instant company, and manages the entire organization, and the Defendants, H, I, and J are guaranteed the class of SMF which is the highest sale, and organization management, recruitment of salespersons, and sales of goods against subordinate salespersons.