POLICIES AND PROCEDURES

Transcription

1 2017 POLICIES AND PROCEDURES

2 TABLE OF CONTENTS Section 1: Introduction Our Agreement Changes To Our Agreement Contacting JAFRA 6 Section 2: Enrolling As a JAFRA Independent Consultant Requirements To Become A JAFRA Independent Consultant Consultant ID Number 7 Section 3: Consultant Status And Account Only One Account Per Person Maximum Of Five Accounts Per Address Changing Your Account Information (Name, Address, Etc.) Name Changes Birth Date Changes And Social Security Number Changes Change Of Addresses And Phone Number 7 Section 4: Consultant Rights & Responsibilities Consultant Benefits Independent Contractor Status No Discrimination Income Claims Code Of Ethics Deceptive, Fraudulent, And Illegal Activities Prohibited Exclusive Use Of JAFRA s Contract And Sales Forms Account Manipulation Prohibited Inventory Loading Prohibited Actions Of Household Members Conflicts Of Interest Reporting Policy Violations Or Improper Activity Inventory Buyback Following Termination Of Agreement Business Kit Buyback 10 Section 5: Operating Your JAFRA Business Consultant Maintenance Requirement No Exclusive Territories Location Of Your JAFRA Business Operating Your JAFRA Business Through A Business Entity Acting On Behalf Of Another Consultant Or Combining Orders Transfer Of Sales Transfer Or Assignment Of Business Reporting Business License Client Referral Lead Program IRS Form Requests For Records 12 2 POLICIES AND PRECEDURES

3 Section 6: Purchase And Sale Of Products Selling Products To Clients Authorized Channel Of Distribution Product Sales To Non-Consultants For Resale Documenting Sales To The End-Consumer Sales Outside Of Channel Of Distribution Product Re-Packaging And Re-Sale Of Samples Prohibitied Customer Service Client Order Form Sales Receipts Three-Day Cancellation Period For Client Sales Ordering Product From JAFRA Paying Your Order/Account Paying By Check Shipping & Handling Sales Tax Gifts Price And Product Availability Correct And Prompt Orders Timing Of Orders For Monthly Commissions Or Incentives Product Quantities Over Product/Order Not Received Inspection Of Delivered Products Storage And Handling Of Products Changes To Orders Product Add-Ons Address Corrections/Change Of Shipping Address Cancelling Product Orders Product Availablity Temporarily Unavailable Products Product Availability Report Returns/Replacements/Exchanges Damaged Or Defective Products (Consultants) Product Replacement & Exchanges (Clients) JAFRA Credit Program; Paying Your Account Applying For Credit; Requirements To Receive Credit Orders Placed With Credit Balances Payment; Late Fees Accounts Sent To Collection (Bad Debt) Pre-Pay Status 18 Section 7: Promoting JAFRA Products And Your Business Promoting Your Affiliation With JAFRA Telephone & Voic Greeting Trademarks, Copyrights, And Domain Names Trademark License Grant Prohibited Actions Documenting Use Of Marks Actions In JAFRA s Best Interests Domain Names 20 3

4 7.2.6 Use Of JAFRA s Copyrights Use Of JAFRA Logo Promoting JAFRA Products And Opportunity Implying Employment Prohibited Product & Testimonial Claims Promotional Materials/ Merchandise Marketing Events Product Pricing And Promotion Guidelines Media Promotion Phone, , And Mass Media Solicitation Before and After Photos Facials and Demonstration Policy Promoting JAFRA at booths or fixed locations Advertising Online Classifieds Banner Advertising Search Engines, Sponosored Links, And Pay-Per-Click Ads Spam Linking Affiliate Programs Personal JAFRA Websites Linking Policy External JAFRA Websites Social Media JAFRA s Social Media Sites General Social Media Policies Violations Of Policy 27 Section 8: Sponsoring And Leadership Leadership Qualifications Leaders Obligations Lineage Support Training On Products, Sales, And Compensation Training On Policies Charging For Training Events And Materials Change Of Sponsor 27 Section 9: Confidential And Private Information Respecting Your Privacy Protecting Client Information Protecting JAFRA s Information Website Privacy Policies 28 Section 10: Compensation, Incentives, Recognition, & Travel Compensation Structure No Cash Advances Non-Commissionable Items Gifts/Rewards Shipment And Taxes Travel And Events Limitation Of Liability Auditing 28 4 POLICIES AND PRECEDURES

5 Tax On Trip Value Photo Policy Consultant Status Additional Travelers No Cash Value Force Majure On-Site Registration 29 Section 11: Inactivity, Suspension, Holds, And Ending This Agreement Ending This Agreement Violations Of This Agreement Re-Enrollment Leave Of Absence Request At The Branch Level Manager Re-Qualifications Hold Status 30 Attached Documents (Appendices) Compensation Plan Code of Ethics March 2016 Appendix A: Compensation Plan Appendix B: Dsa Code Of Ethics 5

6 JAFRA INDEPENDENT CONSULTANT POLICIES & PROCEDURES Welcome to JAFRA! You have joined an empowered and talented group of people from around the world who love JAFRA products and love sharing those products with others. This document, the Policies & Procedures, is intended to do several things. First, it sets out the rules of road for your independent JAFRA business it defines the relationship between you and JAFRA and sets standards for acceptable business conduct. Second, this document is a guide book that will answer questions about how to run your business, place orders, and get paid, among other things. Section 1: Introduction 1.1 OUR AGREEMENT Your Independent Consultant Agreement includes (a) the terms and conditions listed on the Independent Consultant Agreement that you signed when you enrolled with JAFRA, and (b) this document the JAFRA Independent Consultant Polices & Procedures ( Policies & Procedures ). We will refer collectively to these two documents as the Agreement or our Agreement. At the end of this document (the Policies & Procedures), you will find the Compensation Plan (Appendix A), which describes the ways in which you may be paid for your Consultant activities. When the terms JAFRA, we, or our are used in the Agreement, it means JAFRA Cosmetics International. When the terms you or your or Consultant are used, we are referring to you and our other JAFRA independent Consultants, including JAFRA leaders. You must follow all of the requirements in the Independent Consultant Agreement, including in these Policies & Procedures. Because you may be unfamiliar with many of these requirements, it is very important that you read and follow these Policies & Procedures. Please review the information in this document carefully. It explains and governs the relationship between you, as an independent contractor, and JAFRA. If you have any questions regarding any policy or procedures, please contact JAFRA. JAFRA strives to educate its Consultants on the requirements of the Agreement and to work collaboratively with its Consultants to work through any issues. However, if you violate our Agreement, JAFRA has the right to suspend or terminate your account. Thus, JAFRA encourages you to ask questions or seek guidance on our Agreement in order to prevent or promptly correct any violations. 1.2 CHANGES TO OUR AGREEMENT JAFRA reserves the right to change the Agreement, including the Policies & Procedures and Compensation Plan, in its sole and absolute discretion. Among other reasons, such changes may occur because of changes in federal, state, or local laws or changes in the business environment. By entering into the Agreement, you agree to abide by the Agreement including all changes that JAFRA chooses to make. Any of these changes will be effective upon posting such changes or updated documents on The most current version of our Agreement, including the Policies & Procedures, will be posted on com. It is your responsibility to check for the most current version of the Policies & Procedures, and read it, understand it, and follow it. Your continuation of your JAFRA business or your acceptance of compensation or incentives from JAFRA constitutes acceptance of any and all amendments to our Agreement. 1.3 CONTACTING JAFRA If you have any questions, comments, or concerns, please contact us by phone ( ), (jafracares@ jafra.com), chat ( ), or by mail at 2451 Townsgate Rd, Westlake Village, California Our Customer Relationships Team ( CRT ) is here to help! Section 2: Enrolling as a JAFRA Independent Consultant 2.1 REQUIREMENTS TO BECOME A JAFRA INDEPENDENT CONSULTANT To qualify to become a Consultant, you must be 18 years or older, live in the United States or Puerto Rico; be a United States citizen or permanent resident, and possess a valid Social Security number or Tax Identification number. 6 POLICIES AND PRECEDURES

7 To enroll as a Consultant, you must fill out, read, and sign the Independent Consultant Agreement, with valid, true, and complete information. You are not permitted to list another person s phone number or address on the Agreement. You must personally sign and submit the agreement. No other person, including your sponsor, may sign or submit an online application on your behalf. JAFRA reserves the right to refuse to enroll any person as a Consultant at its sole discretion. When you enroll as a new Consultant, you will be sponsored by a current Consultant. If you do not identify a sponsor on your application, JAFRA will assign you one at its discretion. Your Independent Consultant Agreement, and accompanying order(s), if applicable, must be submitted by 11:59pm Pacific Time on the last day of the month to count as a new Consultant during the current month. New Independent Consultant Agreements arriving at JAFRA after the due date above will be processed the following month. 2.2 CONSULTANT ID NUMBER Upon joining JAFRA, each Consultant is assigned an individualized Consultant identification number ( Consultant ID Number ). This Consultant ID Number is used to identify Consultants and their accounts. Please submit your Consultant ID Number on all correspondence and payments. You will also use your Consultant ID Number to access com. Section 3: Consultant Status and Account 3.1 ONLY ONE ACCOUNT PER PERSON You may only have one open JAFRA account anywhere in the world. This means you may only have one JAFRA Consultant ID Number at any time and in any location, including in any other country in the world. JAFRA will terminate any duplicate account. The first account that you created will remain open and JAFRA will terminate all other subsequent accounts. You may not alter any account/contact information (i.e. name, address, birth date or social security number) in any way to create an additional Consultant account. Only one person may be listed on a JAFRA account. Co-applicants for a JAFRA account are not permitted. 3.2 MAXIMUM OF FIVE ACCOUNTS PER ADDRESS There may be no more than five Consultants per mailing address, unless you have written permission from JAFRA and so long as the following criteria are satisfied: No one under the age of 18 may be a Consultant Each Consultant must be a real person using their own JAFRA account in accordance with this Agreement. If more than five people at your address wish to enroll as Consultants, you must contact and follow JAFRA s instructions for verifying the additional Consultants. 3.3 CHANGING YOUR ACCOUNT INFORMATION (NAME, ADDRESS, ETC.) You may request to change your own account information. You may not request to change any other Consultant s information, and no other Consultant may request changes to your account information Name changes To request name changes, please call JAFRA s Customer Relationships Team. You will be required to provide photo identification verifying your name before your name change can be processed. You must also be able to verify the following before JAFRA will process your name change: (1) Your name and Consultant ID Number, (2) your mailing address, phone number, and address, and (3) your date of birth Birth date changes and social security number changes If you need to change the birth date or social security number associated with your account, please call JAFRA s Customer Relationships Team. You will be required to provide verification of your birth date and social security number. You will also be required to fill out and sign a new Consultant agreement Change of addresses and phone number To ensure timely delivery of products, support materials, and commission checks, it is important that JAFRA has your current contact information. If you plan to move, please call JAFRA to update your address and phone number. Verification of your new address is not required. Section 4: Consultant Rights & Responsibilities 4.1 CONSULTANT BENEFITS Once JAFRA accepts your Independent Consultant Agreement and assigns you a Consultant ID number, the benefits of this Agreement, including the Compensation Plan, are available to you. These benefits include the right to: 7

8 Market and sell JAFRA products to the end-consumer. (The end-consumer is the client who uses the product) Participate in the Compensation Plan Sponsor other individuals as JAFRA Consultants and build a marketing organization Participate in JAFRA-sponsored support, service, training, and motivational and recognition events Participate in promotional and incentive contests and programs sponsored by JAFRA for its Consultants 4.2 INDEPENDENT CONTRACTOR STATUS As a Consultant, you are an independent contractor. Your Agreement with JAFRA does not create an employer/employee relationship, agency, partnership, associate, agent or joint venture between JAFRA and you. You are solely responsible for, among other things: Determining when, where and how you will carry out your activities as a Consultant; Paying all costs incurred with respect to your activities as a Consultant, including but not limited to travel, food, lodging, telephone carriers/services, business supplies, sales tools and any all other business related expenses; Setting your own goals, hours and methods of sale, subject to this Agreement and applicable law; Filing the appropriate documents for and paying federal, state and local taxes due from all compensation earned as a Consultant. JAFRA will not withhold amounts or make payments for social security, unemployment insurance, disability insurance contributions, or workers compensation on your behalf. JAFRA will not withhold or deduct taxes of any kind from bonuses or commissions, unless withholding becomes legally required. You will not be treated as an employee with respect to the Internal Revenue Code, Social Security Act, Federal Unemployment Act, state unemployment acts or any other federal, state or local statute, ordinance, rule or regulation. 4.3 NO DISCRIMINATION The JAFRA opportunity is available to everyone regardless of race, gender, nationality, sexual orientation, physical abilities or limitations, religion, or political beliefs. You shall not present the JAFRA opportunity as anything other than an opportunity available to anyone. 4.4 INCOME CLAIMS The Federal Trade Commission and certain states have laws that prohibit certain types of income claims and testimonials by people engaged in direct selling/multi-level marketing. While you may believe it beneficial to tell other Consultants and potential Consultants about your earnings or the earnings of others, such claims may have legal consequences and may negatively impact both you and JAFRA. When discussing the JAFRA opportunity, you should present the opportunity fairly, honestly, and enthusiastically without making misrepresentations. This means you must give other Consultants or potential Consultants a realistic view of what an average person can reasonably expect to earn as a JAFRA Consultant and of the time and effort involved. You should not make statements of potential or guaranteed income or benefits in connection with JAFRA opportunity unless such statements have been promoted by, provided by, or approved by JAFRA. You should not make any projections, claims or estimates regarding your or other Consultants/leaders actual or potential income from JAFRA. Lifestyle claims that imply meaningful earnings from the JAFRA opportunity are also prohibited. For example, among other things, you cannot say things like my JAFRA business allowed me to buy a house, quit my other job, take a luxury vacation, pay off my debt, etc. 4.5 CODE OF ETHICS As a JAFRA Independent Consultant, I agree that I will: 1. AVOID MAKING INCOME CLAIMS: I will not make claims of potential or guaranteed income in connection with the JAFRA opportunity. I will familiarize myself with JAFRA s Compensation Plan and represent it to clients, other Consultants, and prospective Consultants realistically, so as not to mislead or provide false expectations. I will remind each potential new Consultant that each individual s success is based on individual efforts. I will only make claims, representations, or statements about JAFRA s earning opportunity that are included in JAFRA s official materials. 2. MAKE ACCURATE PRODUCT CLAIMS: I will only make the product claims set out in JAFRA s materials, without adding to or withholding information from those claims. In order to ensure that customers receive only accurate and helpful product information, I will regularly take action to ensure that the JAFRA literature, materials and product information in my possession are the most current versions distributed by JAFRA. I will educate myself on the full line of JAFRA products so that I can provide customers with individual guidance on which products are best suited for their needs and the proper usage of the same. 3. SELL PRODUCTS ONLY THROUGH APPROVED CHANNELS OF DISTRIBUTION: If I sell products online, I will only do so through my JAFRA Personal Website, and not through ebay, Amazon, or any other online marketplace. When selling products in person, I will not sell products at swap 8 POLICIES AND PRECEDURES

9 meets, farmers markets, or other types of retail situations. I will follow JAFRA s guidelines for selling products. 4. ETHICALLY FOLLOW THE BUSINESS MODEL: I will not advise or encourage excessive buying at unrealistic levels. I will not inventory load or engage in the following activities to manipulate my JAFRA account ( Account Manipulation ): (a) enroll individuals without their knowledge; (b) fraudulently enroll individuals as Consultants or customers; (c) enroll nonexistent individuals as Consultants or customers; (d) purchase JAFRA products on behalf of another Consultant or customer, or under another Consultant s or customer s log-in or I.D. number; or (e) use any other activity to qualify for advancement, incentives, prizes, commissions, or bonuses that is not driven by real product purchases by end-user consumers or real enrollment of interested individuals as Consultants. 5. RESPECT INTELLECTUAL PROPERTY AND CONFIDENTAL INFORMATION: I will not infringe, misappropriate, or misuse JAFRA s trademarks, copyrights, or other intellectual property. Among other things, I will not use JAFRA or any of JAFRA s trademarks or product names in a website domain name. I will protect and keep confidential any client information that I receive, including credit card information. I will not store my client s confidential information, including credit card information. 6. SERVE MY CLIENTS: I will offer my clients the highest level of service, offering prompt assistance with any necessary product exchanges and/or refunds. 7. DOCUMENT MY SALES: I will keep track of my retail sales using client order forms, sales receipts, and other methods and documents provided by JAFRA. 8. ABIDE BY DSA POLICIES: I will read and follow the Direct Selling Association s Code of Ethics, available at (Appendix B to JAFRA s Policies & Procedures). In the event that an issue arises and JAFRA is contacted by the DSA, I will participate and cooperate in any investigation or dispute resolution. 9. ACT ETHICALLY AND HONESTLY: I will conduct myself ethically and with integrity. At all times, I will present myself and the JAFRA opportunity with honesty and integrity, without misrepresentation. I will uphold the values of JAFRA and not engage in any deceptive, unlawful, or unethical behavior that may be detrimental or reflect poorly on JAFRA, my fellow Consultants, or myself. I will treat my business like any other prestigious enterprise and will fulfill commitments I make to my clients, fellow JAFRA Consultants, and to JAFRA. 10. COMMUNICATE AND ASK QUESTIONS: If I have a question or concern about JAFRA s Code of Ethics or Policies & Procedures, I will talk to my Ambassador or I will contact JAFRA s Compliance Department at JAFRACares@jafra.com. 4.6 DECEPTIVE, FRAUDULENT, AND ILLEGAL ACTIVITIES PROHIBITED You must not engage in deceptive, fraudulent, or illegal activity in conjunction with your JAFRA independent Consultant activities. You must conduct yourself so that your activities outside of your JAFRA Consultant activities do not affect your Consultant activities or JAFRA s reputation. 4.7 EXCLUSIVE USE OF JAFRA S CONTRACT AND SALES FORMS When acting as a JAFRA independent Consultant, you may not use any contracts or forms that JAFRA does not publish. For example, among other things, you may not use a different contract other than JAFRA s official Independent Consultant Agreement when recruiting or enrolling new Consultants. 4.8 ACCOUNT MANIPULATION PROHIBITED Account Manipulation is strictly and absolutely prohibited. Account Manipulation is defined as: (a) the enrollment of individuals or entities without the permission and/or knowledge of such individuals or entities; (b) the fraudulent enrollment of an individual or entity as a Consultant or customer; (c) the enrollment or attempted enrollment of nonexistent individuals or entities as Consultants or customers ( phantoms ); (d) purchasing JAFRA products or services on behalf of another Consultant or customer, or under another Consultant s or customer s log-in or I.D. number; or (e) any other activity to qualify for rank advancement, incentives, prizes, commissions, recognition or bonuses that is not driven by real product purchases by end-consumers. Upon the discovery of any Account Manipulation, you may face, at a minimum, the following consequences: You will no longer be eligible to receive the reward (incentive or rank advancement) that you earned or attempted to earn via Account Manipulation Your JAFRA Agreement and account may be terminated 4.9 INVENTORY LOADING PROHIBITED Inventory loading is not permitted. JAFRA supports conducting a healthy business with no product inventory. Purchasing additional product is in no way a requirement or an assurance that your business will do better. JAFRA reserves the right to refuse large orders if a Consultant cannot demonstrate the quantity of product ordered is supported by purchases by end-consumers. 9

10 4.10 ACTIONS OF HOUSEHOLD MEMBERS If any member of your immediate household engages in any activity which, if performed by you, would violate any provision of the Independent Consultant Agreement, including these Policies & Procedures, such activity will be deemed a violation by you and JAFRA may take disciplinary action pursuant to this Agreement against you CONFLICTS OF INTEREST You are free to participate in other business ventures or marketing opportunities except as set forth below. These restrictions apply during this Agreement and after it ends. You may not take advantage of your knowledge of, or association with, other Consultants who you did not personally sponsor in order to promote or sell such non- JAFRA products, services or opportunities. You may not offer or promote any non-jafra products, services, incentives, opportunities or business plans in conjunction with JAFRA s products or opportunity. For example, among other things, you cannot sell other companies products at a JAFRA party, meeting, convention or other JAFRA function. Also, you cannot sell other companies products on a website, blog, or other social media/internet location on which you sell JAFRA products. You shall not solicit directly or indirectly any JAFRA independent Consultant to enroll in or register with another direct selling, multilevel, or networking marketing company. You shall not induce or attempt to induce any other JAFRA independent Consultant to violate or terminate her/his business relationship or agreement with JAFRA. You may not use or disclose to any party any JAFRA proprietary data, processes, or company information REPORTING POLICY VIOLATIONS OR IMPROPER ACTIVITY If you see another Consultant engaging in a violation of this Agreement, you should report the violation directly to JAFRA INVENTORY BUYBACK FOLLOWING TERMINATION OF AGREEMENT This section governs inventory buyback following your cancellation of this Agreement and your JAFRA account. Product returns that are part of your Consultant activities are discussed in Section 6.5. If your Agreement with JAFRA is terminated, upon your request, JAFRA will repurchase Currently Marketable Inventory and JAFRA-produced promotional materials (including, without limitation, sales aids, tools and kits) within 12 months from the date of your purchase of such inventory or materials. Currently Marketable Inventory means JAFRA product that is unused, and unexpired, and that is not identified at the time of sale as seasonal, discontinued, or a special promotion. Currently Marketable Inventory and JAFRA-produced promotional materials will be repurchased at 90% of your total original net cost, less set-offs and claims, which will include 90% of the net (wholesale) cost of the product and 90% of the tax which was paid, but you will not receive a refund for any shipping and handling costs that you paid when the inventory/materials were ordered. You will be responsible for paying any shipping and handling to return the inventory/materials to JAFRA. Certain set-offs and claims may further reduce the amount for which JAFRA will repurchase your inventory. These might include, among other things: a. Product that is returned for repurchase, but which has not met the criteria of currently marketable inventory. Such product is deducted from the total claimed by you. b. An unpaid balance remaining on your account. The repurchase amount refunded to you will be offset by the amount due on your account. i. When the unpaid balance is less than the repurchase amount due to you, the account balance is considered paid in full, and the remainder of the repurchase amount will be paid to you. ii. When the unpaid balance is greater than the repurchase amount due to you, the account balance is reduced by the amount of the repurchase, and you will not receive any repurchase payment. You will be required to pay any outstanding amount. If a shrink-wrapped or pre-packed set is returned, you will receive the value for the retail price of the set only, not the individual items. JAFRA will not accept inventory buyback requests from individuals other than the Consultant herself unless the Consultant is deceased. To request an inventory buyback, please call JAFRA s Customer Relationships Team BUSINESS KIT BUYBACK You may return a JAFRA Business Kit within 12 months from the date of purchase for a refund by contacting JAFRA s Customer Relationships Team. The refund amount will 10 POLICIES AND PRECEDURES

11 be 90% of your total original net cost, less set-offs and claims, which will include 90% of the net (wholesale) cost of the product and 90% of the tax which was paid, but you will not receive a refund for any shipping and handling costs that you paid when you ordered the Business Kit. You are responsible for paying shipping and handling to return the Business Kit to JAFRA. In the event you return the Business Kit, your agreement with JAFRA is terminated and you are not eligible to re-enroll as a Consultant until 6 months have elapsed from the date on which you placed your last commissionable order. Section 5: Operating Your JAFRA Business 5.1 CONSULTANT MAINTENANCE REQUIREMENT To maintain your Consultant status, you must place a retail order within a period of 12 consecutive months. If you do not place a retail order in 12 consecutive months, your status will be changed to Former, you are no longer eligible to place orders, and you must sign a new Independent Consultant Agreement to re-enroll with JAFRA. JAFRA makes an effort but cannot guarantee that it will notify you before you are changed to Former status. A Consultant who re-joins JAFRA after being changed to a Former status is considered a new Consultant for all purposes and may enter the lineage of a new sponsor if desired. A Former Consultant will lose all benefits and seniority associated with their previous title, and a Former Consultant relinquishes any sponsoring benefits for any Consultants he/she may have previously sponsored. 5.2 NO EXCLUSIVE TERRITORIES JAFRA does not assign or guarantee any geographic territories. 5.3 LOCATION OF YOUR JAFRA BUSINESS The following location restrictions apply to your JAFRA business: You may only sell products, distribute products, market products, and sponsor new Consultants within the United States and Puerto Rico and not in any other countries. In all instances, you must comply with all applicable laws and requirements in the location in which you are doing business. You are responsible for knowing those laws and consulting your own legal or financial counsel if necessary. JAFRA products purchased in the United States cannot be delivered or sold in any country other than the United States and Puerto Rico. JAFRA products purchased by Consultants for resale in another country (for example, Mexico) must be delivered and sold only in that country. You may not, in any country outside of the United States or Puerto Rico: (a) conduct sales, enrollment or training meetings; (b) enroll or attempt to enroll potential clients or Consultants; or (c) conduct any other activity for the purpose of selling JAFRA products, sponsoring, or promoting the JAFRA opportunity. 5.4 OPERATING YOUR JAFRA BUSINESS THROUGH A BUSINESS ENTITY You may not operate your JAFRA business through a business entity. In other words, a corporation, limited liability company, partnership, or any other business entity may not apply to be a JAFRA Consultant. 5.5 ACTING ON BEHALF OF ANOTHER CONSULTANT OR COMBINING ORDERS You may not conduct transactions or act on behalf of another Consultant. For example, among other things, you cannot: Utilize a credit balance on someone else s account (for example, by placing an order against it); Place or cancel an order on behalf of another Consultant; Make a payment on someone else s account or purchase products using another person s name or account; Change someone s shipping or billing address; Log into someone else s account. You may not combine orders with another Consultant. This policy is to preserve the maintenance of product quality control, accuracy of point accumulations for awards and recognition, Compensation Plan benefits, and sales tax and income reporting. 5.6 TRANSFER OF SALES Your personal sales of JAFRA products may not be transferred to any other Consultant. JAFRA reserves the right to cancel such orders and void all other benefits, including but not limited to, promotion within the Compensation Plan, commissions, etc. 5.7 TRANSFER OR ASSIGNMENT OF BUSINESS Your independent Consultant business relationship with JAFRA is a personal relationship. You cannot sell, assign, or transfer any rights in this Agreement or in your JAFRA business. 5.8 REPORTING It is your responsibility to track and keep accurate records of expenses and revenue associated with your JAFRA business. Reporting all income generated by the sale of JAFRA products to the appropriate agencies is your sole 11

12 responsibility. Such income includes but is not limited to: retail sales profit, commission overrides, prizes received/earned, bonuses, trips, gifts and awards. 5.9 BUSINESS LICENSE You must adhere to all applicable local, state and federal laws, which among other things, may require the maintenance of a business license in order to conduct business out of your home or commercial office. JAFRA encourages you to seek professional advice for questions regarding this matter CLIENT REFERRAL LEAD PROGRAM JAFRA s Lead Program gives you the opportunity to receive Leads, which are people who could be interested in joining JAFRA as a Consultant, hosting a party, or buying JAFRA product. How Does the Program Work? JAFRA receives Leads via phone, , or internet. Once JAFRA receives a Lead, JAFRA will assign the Lead to a consultant, at JAFRA s sole discretion, depending on the Lead s interest, language and vicinity. JAFRA s lead administrator will send the consultant an with the Lead s contact information. A consultant receiving a Lead is encouraged to call the Lead within 48 hours of receiving JAFRA s . The Consultant must follow up with JAFRA s lead administrator within 2 business days of receiving the Lead to confirm receipt of the Lead and action taken. You may call in the results at or send the results via to Leads@jafra.com. If sending the results via , be sure to include your name and ID Number, the Lead s name, and the results such as: 1. Sponsored (include Lead s Consultant ID number) 2. Purchased product (include amount ordered) 3. Held JAFRA Party 4. Wanted Information Only 5. Not interested 6. Unable to contact 7. Contacted; results pending 8. Other (please explain) IRS FORM 1099 JAFRA will provide Consultants a 1099 MISC form, as well as report to the IRS an earnings statement, for Consultants who have: Had commission earnings over $600 in the previous calendar year; Purchased $5,000 or more in wholesale items from JAFRA; or Received $600 or more in overrides, bonuses and/or prizes. Form 1099 is to be used by the Consultant to prepare his/her individual tax returns on a yearly basis. JAFRA recommends that every Consultant seek professional tax advice and guidance from a Certified Public Accountant or other tax professional. JAFRA is not responsible for any personal income tax liability due to Consultant s performance of services for JAFRA REQUESTS FOR RECORDS JAFRA reserves the right to charge you a fee for the time and expense of providing copies of invoices, applications, downline activity reports, or other records that you request. Section 6: Purchase and Sale of Products 6.1 SELLING PRODUCTS TO CLIENTS As a JAFRA Consultant, you sell JAFRA products via the direct-to-consumer approach, and your success with clients depends on personal relationships. Through direct sales, clients may experience the products before buying and receive proper individual instruction in product use, both before and after the sale. Therefore, JAFRA s policies regarding sales are intended to steer you away from the pursuit of the one-time only, impulse sale and toward longterm, relationship-based sales. It is beneficial for you to put forth your best efforts in servicing clients and in creating and maintaining the goodwill of clients toward JAFRA Authorized channel of distribution The only authorized channel of distribution for selling JAFRA products is directly to the end-consumer (the client who uses the product) on a one-on-one basis, either in person or through official JAFRA e-commerce platforms (like your JAFRA Personal Website). You shall not sell JAFRA products in locations open to or available to the public. For example, among other locations, you shall not sell JAFRA products: (a) at swap meets, flea markets, or farmers markets, (b) on ebay, Amazon, Craigslist, Facebook Marketplace, Walmart.com, Jet.com or other electronic forums (c) on any website or social media platform not authorized by JAFRA, or (d) on Mercari, Poshmark, letgo, or any other mobile app sales platforms. A violation of this provision may lead to the termination of your Consultant account and the award of damages to JAFRA Product sales to non-consumers for resale You shall not sell or otherwise provide JAFRA products to non-consumers for the purposes of resale. This prohibition on resale of JAFRA products includes, but is not limited to, sales by non-consumers conducted in retail establishments, internet retail websites, or internet auction websites. Nor may a Consultant sell to a non- 12 POLICIES AND PRECEDURES

13 consumer any quantity of JAFRA products greater than that generally purchased by an individual for personal use. A violation of this provision may lead to the termination of your Consultant account and the award of damages to JAFRA Documenting sales to the end-consumer It is important that you keep records of your sales of JAFRA products to your clients for a period of two years from the date of each sale for business and regulatory reasons. JAFRA reserves the right to request copies of these records of your sales to your clients and end consumers. The documentation of sales of JAFRA products to the end consumer should include the product(s) purchased, the end-consumer s name, address, telephone number, and address. The requirement that you retain documentation of your sales is essential to ensure that JAFRA is able to contact end-consumers following the sale of JAFRA products with any information necessary for the customers continued enjoyment of JAFRA goods (i.e. updated product information, updated usage instructions, product recalls, etc.). JAFRA may audit your compliance with this provision and take disciplinary action against Consultants who fail to comply with these terms Sales outside of channel of distribution No warranties, exchanges or refunds will be granted for JAFRA products known to be sold outside of authorized channels of distribution. For more information on warranties, exchanges and/or refunds for products sold through the authorized distribution channels, see Section Product re-packaging and re-sale of samples prohibitied JAFRA products may only be sold in their original packaging, complete with instructions for use, warning labels and ingredient lists if applicable. You may not repackage, re-label, adulterate or tamper in any way with any product packaging, warning labels, instructions, or JAFRA materials or literature. You may not re-sell or re-package JAFRA products as private label products, re-design any products, or sell used or opened products. You may not sell, giveaway, or distribute as gifts products that are designed to be sold within a fixed set (i.e. sets where JAFRA has designated specific products to be sold together) as separate, individual products. You may not sell products designated as samples by JAFRA Customer service Personal relationships are essential to your success as a JAFRA Consultant and to the value received by your clients when they purchase a product from you. As such, it is recommended that you provide your clients with current contact information and make it known to your clients that you are available to answer questions, provide advice, and respond to client concerns both before and after the sale of any product. You should consult your JAFRA materials, refer to and use available educational tools, or contact JAFRA directly for guidance in responding to the clients questions or concerns Client order form At the time you take an in-person order from a client, you are responsible to provide each client with an official JAFRA Client Order Form. This official Client Order Form provides the required Buyers Right to Cancel, Terms and Conditions and the Notice of Cancellation. You should retain a copy of each signed Client Order Form as proof of purchase, protecting you from any future discrepancies. Signed copies are critical and can be used as proof of purchase when charge backs are in question. When a credit card is used, it is required that the Client Order Form be signed/dated by the owner of the credit card being used. You may not use JAFRA s official Client Order Form for products/services not offered or sold by JAFRA. You may not duplicate, reproduce or replace JAFRA s Client Order Form Sales receipts You must provide your clients (except for those who place direct orders through your JAFRA website) with two copies of an official sales receipt at the time of the sale. You must maintain a copy of all sales receipts for a period of 12 months and furnish them to JAFRA at JAFRA s request. In addition, you must orally inform your clients of their cancellation rights at the time they place an order from you. All guarantees, refunds, warranties are void without an official JAFRA receipt/order form Three-day cancellation period for client sales A client has three (3) business days (Saturday is a business day) after the sale of JAFRA products or execution of an independent Consultant contract to cancel the order/contract and receive a full refund. If you make a sale or take an order from a retail customer who cancels or requests a refund within the cancellation period, you must promptly refund the client s money as long as the products are made available to you in as good condition as when received. You must orally inform clients of their right to rescind a purchase or an order within this three-day cancellation period, and ensure that the date of the order or purchase is entered on the order form. 13

14 The client may give notice of cancellation by mailing or giving you the cancellation form or any other written notice. Following valid delivery of this notice of cancellation within the specified time period, the client must make available, at her/his residence, in the same condition as when she/ he received them, any products received as a result of this transaction prior to receiving a refund. In the alternative, a client may follow your instructions regarding the return shipment of the products at your risk and expense. If a client makes the products available for retrieval and you do not pick them up within 20 days of your client s notice of cancellation, the client may retain or dispose of the products without any obligation. Within 10 business days of your receipt of your client s notice of cancellation, you must return any amounts received for this canceled transaction to your client provided that you receive the products from the client. 6.2 ORDERING PRODUCT FROM JAFRA Paying your order/account You can make a payment on your account at any time either via the web ( or by phone by calling our 24/7 automated system ( ). You may make a payment via credit card (Visa, MasterCard, Discover, American Express ), debit card, check, money order, or JAFRA Debit MasterCard Paying by check You may generally pay for your order by check, unless JAFRA notifies you that you have lost the privilege to send payment by check as a result of having a check returned to JAFRA by your bank (i.e. a bounced check ). In the event your personal check is returned to JAFRA by your bank, (a) your JAFRA account will be charged the amount of the returned check plus the current returned check fee; (b) you may only pay for future JAFRA purchases by money order, cashier s check or credit card; and (c) you must make a valid payment before subsequent orders can be processed Shipping & handling JAFRA applies a shipping and handling fee for each order placed with JAFRA. Shipping and handling fees can be found on the official Consultant master order form, the monthly Consultant order form, and the JAFRA client order form. Shipping and handling on web orders are discounted $2. Shipping and handling fees are subject to change. Additional shipping and handling fees may apply for orders sent outside of the continental United States Sales tax JAFRA collects and remits sales taxes on behalf of its Consultants, based on the suggested retail price of the products, according to applicable tax rates in the state or local taxing jurisdictions to which the shipment of products is being sent. Sales made by a Consultant outside of the ship-to location may be subject to additional tax reporting or sales tax obligations by the Consultant, as the taxability of products and sales tax rates may differ by state, country, city, or county. This could result in a disparity in what JAFRA charges a Consultant and what the Consultant in turn can charge a client, depending upon where the sale occurs. It is always the responsibility of each Consultant to track and remit any sales tax in addition to what has been previously collected and remitted on their behalf to the appropriate jurisdiction. If a Consultant has submitted, and JAFRA has accepted, a current Sales Tax Exemption Certificate and Sales Tax Registration License, sales taxes will not be added to the invoice and the responsibility of collecting and remitting sales taxes to the appropriate authorities shall be on the Consultant. Exemption from the payment of sales tax is applicable only to orders that are shipped to a state for which the proper tax exemption papers have been filed and accepted. If sales are made outside of the exempt jurisdiction, Consultants are responsible for recording and remitting the appropriate sales taxes. Any sales tax exemption accepted by JAFRA is not retroactive. Consultants should direct any questions regarding their tax and reporting obligations to their own independent tax advisors Gifts When you achieve a promotion or earn a reward or gift, gifts may be sent automatically with an order. However, if you request to have the gift sent separately from an order, you will be required to pay shipping and handling for the gift Price and product availability JAFRA reserves the right to change the prices at which it offers products for sale and the range of products offered without prior notice Correct and prompt orders JAFRA is not responsible for order delays incurred by Consultants due to circumstances beyond JAFRA s control such as: typographical errors, entering any client data incorrectly, weather, acts of God, etc. It is your sole responsibility to double check all orders for accuracy prior to processing. 14 POLICIES AND PRECEDURES

15 6.2.8 Timing of orders for monthly commissions or incentives Orders and payments during the month will count for commission, awards, or incentives for that month. Orders and payments must be submitted by 11:59 pm Pacific Time to be counted for commission, awards, or incentives for that month. The following rules apply: 1) Orders placed during the month (not necessarily paid) count towards leader and Consultant ordering requirements for evaluation of central branch maintenance and eligibility of commission override payment. 2) Order payments during the month will count towards payments for commission override calculation only when the order is paid in full. For example, if you place an order using JAFRA credit for $ during a certain month (for example, February) and pay only $ during that same month (February), the order will not be released as paid in that month (February). When you pay the balance of $ in the following month (March) the order will be released and the entire $ payment will count towards the Paid Retail Sales of the following month (March) 3) Sales incentives are based on paid retail sales Product quantities over 50 Orders are limited to a quantity of 50 per individual product/ set/ SKU. Order requests for more than 50 units of any single product/set/sku will need approval by JAFRA prior to processing. Any order over 50 requires approval from JAFRA. The only exception is sales aids, which can be ordered in any quantity. JAFRA reserves the right to adjust an order s product quantity request at any time Product/order not received Failure to receive an order or product must be reported to JAFRA within 14 days of the order s ship date by contacting the Consultant Relationships Team (CRT) via at JAFRAcares@JAFRA.com or by phone during business hours. If a product requested is missing from your order, please look for an explanatory note on your invoice or on a drop note placed separately in your order. If the product appears on the invoice and no note of explanation is found, contact CRT during JAFRA business hours and provide the order number and item number to the Team Member. If you JAFRA to notify of a missing order/product, please include the following information: Your name Your Consultant ID Number The shipping address of the order The order date and order number Product number of missing product (if applicable) If you request that we ship an order to an address other than the address that appears on your JAFRA account, JAFRA will not be responsible for any order discrepancies or orders not received. For example, if you request that we ship an order to your leader s address, your leader and not JAFRA is responsible for that order Inspection of delivered products Upon receipt of an order, you should immediately inspect the order to ensure that it is complete and undamaged. You should inspect each product to ensure that no product is expired or soon to be expired, damaged, or tampered with. Additionally, you should inspect each product to confirm that the product s seal has not been broken. In the event that you receive products that have been damaged, tampered with, have broken seals, or are expired, you are prohibited from selling any such products to customers. As explained more fully in Section 6.5.1, you should notify the Customer Relationships Team (CRT) at JAFRAcares@ JAFRA.com to request replacement products and provide the CRT with required information concerning any damaged or defective products Storage and handling of products All JAFRA products should be stored in a cool, dry, and hygienically safe area or as otherwise directed by the label. As a general rule, the products should be kept at least four inches (4 ) above the floor and out of direct sunlight. JAFRA is not responsible for product that is damaged due to improper storage. Prior to offering any products for sale to end-customers, you should inspect each product to ensure that it is properly sealed and has not reached its expiration date. Any product that is damaged, unsealed, or expired may not be sold to end-customers. 6.3 CHANGES TO ORDERS Product add-ons Once an order has been submitted for processing, products and/or quantities cannot be adjusted. Any additional product will be processed as a separate order and the normal shipping and handling fee will apply. 15

16 6.3.2 Address corrections/change of shipping address To change a shipping address for an order prior to placing the order, you must call the CRT and provide the updated shipping address. Any changes made to your account information will be updated online immediately. If the shipping address that you provided at the time of the order was incorrect, the shipping carrier may still be able to deliver the order to you depending on where the package is located in transit. Address changes must be made by calling CRT by phone during normal business hours. You will incur a minimum charge of $12 for re-routing per tracking number. JAFRA cannot guarantee a successful re-routing Cancelling product orders If you have placed your order and paid for it, you may call CRT in a timely manner and CRT will make every effort to cancel the order. However, sometimes orders are shipped immediately and such orders cannot be cancelled. JAFRA is unable to guarantee a successful cancellation of your order. If an order is in transit and you no longer wish to receive it, you may refuse the order from the courier. Once the refused order is received back at JAFRA s distribution center, a credit (less shipping and handling) will be processed on your account. If you are unable to refuse the order from the courier and it has not been opened, please contact CRT for order return procedures. 6.4 PRODUCT AVAILABLITY Temporarily unavailable products In the case of a temporarily unavailable product, information will be provided to you either on the invoice or on a separate drop note included in the package explaining which of the following actions will be taken when an out-of-stock situation occurs: Temporarily Out Of Stock Back-ordered products will be indicated on invoice and will be shipped once the product becomes available. Permanently Out-of-Stock - If a substitution is made available on an unavailable product, you may select the substitution and/or cancel the order for a credit. Substitutions are always of equal or greater value. Please note that out-of-stock products may reduce the retail value of an order, which can affect sales volume, awards, recognition, etc Product availability report You can keep current on the status of JAFRA products via the Product Availability Report which is posted at The status categories and definitions are as follows: TEMPORARILY UNAVAILABLE Products that are currently unavailable but will come back at a later date. TO BE DISCONTINUED Regular line products that are no longer being produced and will soon be unavailable. These products are sold while supplies last with a discontinued price. All sales are final for products purchased from the To Be Discontinued list. No returns or exchanges will be accepted. DISCONTINUED Products that have been removed from the regular line and are no longer available or that are limited life products that were offered on a while supplies last basis and are no longer available and will not be coming back. SUBSTITUTIONS Specially selected alternatives to gifts with purchase and products included as added values to special offers with equal or greater value to what was originally offered. OUT OF STOCK Limited life products that were offered on a while supplies last basis and are no longer available and will not be coming back. Please note: Discontinuation is part of the nature of the business, and a reflection of the fact that JAFRA is a growing, dynamic brand that is keeping pace with other industry leaders. It is recommended that you view the Product Availability Report for current information. 6.5 RETURNS/REPLACEMENTS/ EXCHANGES Damaged or defective products (Consultants) Each order is packaged with care. However, occasionally your package may contain product damaged in shipping. If this occurs, call or us within 14 days from the order s ship date. To report damaged or defective products, contact the Customer Relationships Team (CRT) at JAFRAcares@ JAFRA.com to request a replacement. Be sure to include the following information in your Consultant Name Consultant ID Number Complete Shipping address 16 POLICIES AND PRECEDURES

17 Order Date Order Number on which product(s) was purchased Product Number and Quantity of the product(s) being replaced Reason for the defective replacement (i.e., broken container, pump doesn t work, etc.) Batch Code of the product(s) being replaced In the event that the product received was damaged during shipping, include this additional information: What was the condition of the shipping box? In what way is the product damaged? (i.e., broken container, missing cap) For quality assurance purposes, JAFRA may request the defective or damaged product(s) be returned. If product is requested and not returned within 45 days from the return request date, your account will be charged the full retail value for the item that was replaced. Consultant business kits, seasonal products, products given as incentives, business supplies, and other sales tools may not be exchanged Product replacement & exchanges JAFRA strives for product satisfaction and if your client should find any product unsatisfactory, and your order for that product was placed within the past 6 months, please contact CRT during business hours for replacement procedure. Please note that client orders purchased from JAFRA.com or a Consultant s personal website are subject to the Sales and Shipping Policies found on JAFRA.com. If the product to be exchanged was purchased within a variable set (sets where selections are chosen), the product can be exchanged for an equal product subject to availability at the time of order. If the product to be exchanged was purchased within a fixed set (sets where JAFRA has designated specific products to be sold together), a replacement will only be made for the same set of products, subject to availability. Exchanges may be made for products of equal or greater value. In the event the product is exchanged for another product of greater value, JAFRA will process a debit for the price difference on your account. Exchanges or replacements may not be made for products that were not available, on backorder, or temporarily unavailable at the time of the original order. To request product replacements or exchanges, contact CRT via at JAFRAcares@JAFRA.com or by phone during business hours. Include the following information: Consultant Name Consultant ID Number Complete Shipping Address Order Date Order Number on which the product(s) was purchased Product Number and quantity of the product(s) being replaced or exchanged Reason for the replacement or exchange Batch Code of the product(s) being returned or replaced Product Number and description of the substitute product. JAFRA reserves the right to request that unsatisfactory product(s) to be returned. If product is requested and not returned within 45 days from the return request date, your account will be charged the full retail value for the item that was replaced in good faith. Your commission on the product(s) may be adjusted. JAFRA reserves the right to refuse returned items (i.e. return not authorized, product reported as unused but is returned used and/or in unacceptable condition) or to debit your account if the product returned is more than 50% used. Product returns/ replacements/exchanges are at the sole discretion of JAFRA. If a client purchases a product on JAFRA.com or through your JAFRA Personal Website and finds the product unsatisfactory, the client may return the product to JAFRA within 60 days from the purchase date (the 60 Day Satisfaction Guarantee ). The 60 Day Satisfaction Guarantee applies only to purchases made through authorized sales channels, which include JAFRA.com or a Consultant s JAFRA Personal Website. It is your responsibility, as a Consultant, to inform your clients of the 60 Day Satisfaction Guarantee. 6.6 JAFRA CREDIT PROGRAM; PAYING YOUR ACCOUNT Applying for credit; requirements to receive credit You may request a $300 credit limit from JAFRA if these requirements are met: 17

18 You complete 6 consecutive months of affiliation with JAFRA (A Former Consultant who re-joins is also required to complete 6 consecutive months of affiliation to apply for the Credit Program.) You have achieved $300 in Paid Wholesale Sales. You have no past due invoices, returned checks, or negative credit card activity on your JAFRA account, and you have never been sent to collections or had bad debt on your JAFRA account. You provide a current proof of address and a valid phone number where you can be reached. Proof of address may be a document such as a utility bill, driver s license, or voided personal check in your name with a current address listed that appears on JAFRA records. Credit limit increases above $300 may be granted if it has been 6 months since the last increase and the required Paid Wholesale Sales have been achieved with no returned payments or past due orders within those 6 months. Increases are granted one level at a time. $500 limit requires $1,000 Paid Wholesale Sales $1,000 limit requires $2,000 Paid Wholesale Sales $1,500 limit requires $2,000 Paid Wholesale Sales $2,000 limit requires $2,000 Paid Wholesale Sales $2,500 limit requires $2,000 Paid Wholesale Sales Request for credit can be made by phone but verification of address must be faxed, mailed, or ed to JAFRA. Establishment of credit and credit limit increases are discretionary, not automatic. If you have qualified to receive credit, your current credit limit will be noted on Continuation of the credit privilege is discretionary and dependent on adherence to JAFRA s payment terms. Non-compliance will result in a pre-pay account status (see Section 6.7 below) Orders placed with credit If you place an order using JAFRA credit, and your total exceeds the amount of your JAFRA credit, you must pay the additional amount that exceeds your available credit before your order is released Balances payment; late fees All balances are due within 14 days of the order s ship date. An order will be considered past due if payment is not received within 21 days of the order s ship date. Subsequent orders will not be processed when an account has a past due balance. Late payment fees of 2% on outstanding balances will be incurred at 21, 45, 60, 90, and 120 days from the order s ship date. The minimum late fee is $ Overrides, bonuses, incentives, and rewards will only be awarded to a Consultant who is in good standing. A Consultant who has paid the outstanding balance in full and is approved to return to active Consultant status will be required to permanently pre-pay all orders Accounts sent to collection (bad debt) In the event that you have an outstanding credit balance over 120 days past due, JAFRA s Credit & Collections Department will assign the bad debt to a collection agency. JAFRA reserves the right to terminate the agreement of a Consultant with an outstanding balance that has been referred to a collection agency. Should a Consultant wish to rejoin JAFRA, all bad debt must be paid prior to consideration of acceptance of a new Consultant agreement, along with 50% of the amount that was assigned to the agency to cover the collection costs incurred by JAFRA. 6.7 PRE-PAY STATUS Pre-Pay Status means that you must fully pay for your order before JAFRA will process and ship it. The only Consultants that are not on Pre-Pay Status are those Consultants who are on the JAFRA credit policy. Consultants who must pre-pay their accounts are: (1) all new Consultants, (2) Consultants who don t apply for credit, (3) and Consultants who don t comply with the credit policy or who have checks returned and are told by JAFRA that their account is on Pre Pay Status. To pre-pay orders, calculate the amount of the order including sales tax and include payment at the time of order. If you are on Pre-Pay Status, you are not permitted to pay via cash or personal check; you may only pay by credit or debit card. To get off of Pre-Pay Status, you will need to complete all of the following requirements: (1) fully pay your account, (2) maintain a good payment record for one year, (3) have $500 in Paid Wholesale Sales in the past 4 months, and (4) have no returned payment activity in the last 6 months. Section 7: Promoting JAFRA Products and Your Business 7.1 PROMOTING YOUR AFFILIATION WITH JAFRA When you identify yourself as affiliated with JAFRA, you must make clear that you are an independent contractor, not a JAFRA employee. At all times, you must make clear that you are acting on your individual behalf, and not on behalf of JAFRA Cosmetics International, Inc. For example, when you identify your JAFRA business, 18 POLICIES AND PRECEDURES

19 including in print, online or on the phone, you must use: Your Name, JAFRA Independent Consultant. You are not permitted to place the words JAFRA Cosmetics International, Inc., JAFRA, JAFRA Cosmetics immediately before or after your name because to do so would suggest that you have an employment relationship with JAFRA Telephone & voic greeting You may leave a recording on your answering machine or answer the phone by identifying yourself as a JAFRA Independent Consultant. You are prohibited, however, from answering the telephone in any way that would give callers a reason to believe they have reached JAFRA s corporate office. For example, an acceptable phone greeting would be: Hello, you ve reached [YOUR NAME], a JAFRA Independent Consultant. An unacceptable phone greeting would be: Hello, you ve reached [YOUR NAME] at JAFRA Cosmetics. When listed in any phone directory or phone book, you must be listed as Your Name, JAFRA Independent Consultant. 7.2 TRADEMARKS, COPYRIGHTS, AND DOMAIN NAMES You shall not copy or reproduce in any manner any JAFRA copyrighted materials or use such materials in any manner which, in the sole judgment of JAFRA, would harm or threaten to harm JAFRA s business, rights, or privileges, including without limitation its intellectual property rights, except with the prior written approval of JAFRA or as otherwise provided in the Policies & Procedures. The name JAFRA, and all JAFRA trademarks and trade names are the exclusive property of JAFRA. You shall not use JAFRA s trademarks or trade names or any confusingly similar mark, except with the prior written approval of JAFRA or as provided in the Polices & Procedures. You shall discontinue any use of any trademark, trade name or copyrighted material owned by JAFRA upon receipt of written notice from JAFRA. All JAFRA literature, brochures, text, logos, icons, photographs/ images, audio recordings, videos, DVDs and programs published in any form and authored in any manner are copyrighted by JAFRA and may not be duplicated except with the written consent of JAFRA or as otherwise permitted in our Agreement. JAFRA encourages all Consultants to safeguard and positively promote the reputation of the JAFRA brand and its products. JAFRA reserves the right to request, and Consultant agrees to, the immediate removal of any advertising or Internet presence that JAFRA feels, in its sole discretion, is inappropriate, unacceptable, misuses JAFRA s intellectual property, or in any way interferes with or damages JAFRA s rights in, or the goodwill associated with, such trademarks, trade names and copyrights. If you come across any misuse, infringement, misrepresentation of the JAFRA brand, trademarks, or products by a third party, please notify JAFRA. You should not, and you are not authorized to, act on JAFRA s behalf in such situations. You must cooperate with JAFRA to the fullest possible extent in any investigation or enforcement effort Trademark license grant Subject to the terms and conditions of this Agreement, JAFRA grants and you accept the limited, royalty-free, non-exclusive, non-transferable, revocable right to use JAFRA s trademarks for the sole purpose of selling JAFRA products and building your JAFRA business. You do not acquire any interest under this Agreement other than the rights to JAFRA s trademarks granted here. You do not acquire any right to sub-license JAFRA s trademarks. Any rights not expressly granted to you are reserved to JAFRA. Term. The term of the trademark license set out in this section 7.2 is for the term of this Agreement or a shorter period in JAFRA s sole discretion. Non-Exclusive Grant. Nothing in this Agreement will be construed to prevent JAFRA from granting any other licenses for the use of the JAFRA s trademarks or from using JAFRA s trademarks in any businesses. Use of Marks. You shall use and display JAFRA s trademarks only (a) in association with the promotion and sale of JAFRA products and the promotion of the JAFRA opportunity; (b) in the manner and form that JAFRA s trademarks are registered; and (c) in accordance with the terms of this Agreement. Benefit of Goodwill. Your use of JAFRA s trademarks and any resulting goodwill will accrue solely to JAFRA s benefit Prohibited actions Except as otherwise permitted in our Agreement, you shall not, directly or indirectly: Register or use any other trade name, trademark, or service mark incorporating or based in whole or in part on (1) our name JAFRA, (2) JAFRA s brand names, trade names, trademarks, service marks, product names, domain names, symbols, logos, slogans, artwork, or other identifiers or designations of origin of JAFRA ( Marks ). Use all or part of any of the Marks (or any misspellings 19

20 or derivations of the Marks) as any Internet domain (including, without limitation as a sub-domain on JAFRA s websites or as your name or user ID within any blogs, social networking sites, posting sites, or as the numbers/designations within your phone number). Use any of the Marks in any address, social media handle, or customized license plate. Use any Mark as part of any business name, as part of any signage displaying a business name, or in connection with any unauthorized goods or services. Use the word official in conjunction with any of the Marks or use a specific geographic location in conjunction with any of the Marks (i.e. JAFRACalifornia). Debrand, rebrand, or privately label any of the Marks. Copy, modify, or recreate any of the Marks or any mark that is similar to the Marks. Hold yourself out as having any ownership interest in the Marks. Engage in any conduct that would adversely affect JAFRA s interest in its Marks or the goodwill associated with them. Dispute the validity, ownership, or enforceability of any of the Marks. Engage in any conduct that would constitute infringement of, or otherwise harm, the intellectual property rights of any third parties Documenting use of marks You shall provide to JAFRA, if requested, documentation of your use of JAFRA s Marks Actions in JAFRA s best interests You shall act in the best interests of JAFRA as owner of the Marks and in such a way as to preserve and protect JAFRA s interest in its Marks Domain names You shall not use or register any of JAFRA s trademarks, product names or any derivatives or abbreviations thereof as Internet domain names, addresses, social networking profiles, or online aliases. You shall not use or register domain names, address, social networking profiles, or online aliases that could cause an individual to believe or assume that the site/page/communication is from or is the property of JAFRA. Examples of such improper use are jafragirl@gmail.com, or having JAFRA show up as the sender of an Use of JAFRA s copyrights JAFRA produces promotional materials, which are posted on for Consultant use. Likewise, JAFRA produces its own promotional videos, some of which are posted on social media. If you use any of these materials or videos, you must use the materials or videos as they are posted and never edit them Use of JAFRA logo You are not permitted to use the corporate JAFRA logo (which is the name JAFRA or the name JAFRA and the slogan Freedom to be you ) in any materials/content/ posts that you create unless you have written consent from JAFRA. Similarly, absent prior written consent, you are not permitted to use any corporate logos previously used by JAFRA. You may use the approved JAFRA Independent Consultant logos provided on for any of your Consultant activities. You are not allowed to modify or change that logo in any way. All images, logos, trademarks and copyright materials of JAFRA and all rights therein are the exclusive property of JAFRA. Any abuse of the foregoing is actionable infringement for which JAFRA may pursue any and all available legal remedies. 7.3 PROMOTING JAFRA PRODUCTS AND OPPORTUNITY Implying employment prohibited As part of promoting the JAFRA opportunity or recruiting new JAFRA Consultants, you are prohibited from making any promotions, representations, or implication of employment, salaried positions, management positions, hourly wages, full or part time positions, or guaranteed incomes. The opportunity to earn money from JAFRA is not a job or employment and may not be presented as such. When talking about JAFRA or the JAFRA opportunity, you many not use terms such as manager trainee, management positions available, travel provided, call for interview, positions available, now hiring or other misleading statements that imply employment Product & testimonial claims You may not make claims (including personal testimonials) as to therapeutic, curative, or diagnostic properties of any products offered by JAFRA except for those specific claims contained in official JAFRA literature. Such claims may only be repeated or republished in exactly the same format as that published by JAFRA and the claim must be republished in its totality. Specifically, you may not make any claim that JAFRA products are useful in the cure, treatment, diagnosis, mitigation, or prevention of any diseases. Such statements can be perceived as medical or drug claims. Not only do such claims violate JAFRA policies, but they potentially violate federal and state laws and 20 POLICIES AND PRECEDURES

21 regulations, including the Federal Food, Drug, and Cosmetic Act and the Federal Trade Commission Act. You should advise clients who have medical questions to consult with a physician regarding any such question before using JAFRA products. Whenever you are using any JAFRA product or opportunity materials, you must always include any and all notices, warnings and disclaimers provided by JAFRA. You have a responsibility to educate yourself using up-todate JAFRA literature so that you can provide clients with accurate information. All product representations made by you must be the same as those found in current JAFRA literature and promotional materials Promotional materials/ merchandise You may make the following items as long as they clearly display the JAFRA Independent Consultant logo (and not the corporate JAFRA logo): Business cards T-shirts, hats, jackets, and other items of clothing Nametags Pens and stationary You are allowed to print or download marketing materials found in that are specifically designed for Consultant use, such as monthly promotional and incentive flyers. You may not make items such as tablecloths, banners, posters, or printed flyers without permission from JAFRA. Please jafracares@jafra.com to ask for permission for your project. You may not alter, photocopy, or reprint for distribution any JAFRA Catalog, Seasonal Essential Brochure, Action Brochure, or other JAFRA promotional material, except as provided in Consultant Connection. You may not create your own flyers or any type of material that advertises JAFRA products, promotes the JAFRA opportunity, mentions JAFRA commission payments, mentions the JAFRA compensation plan, or attempts to recruit people to join JAFRA. You may not copy any of JAFRA s graphic images (including without limitation pictures of JAFRA products, models, gifts, text, or logos) Marketing events You may market sponsoring opportunity sessions, JAFRA parties, or any other JAFRA event as long as you follow these Policies & Procedures when doing so Product pricing and promotion guidelines When promoting or selling JAFRA products or the JAFRA opportunity, you may not offer additional incentives not offered by JAFRA, including but not limited to, free or reduced shipping charges, gifts, bundles, coupons, promotional codes, discounts or any other similar incentives on the sale of JAFRA products. You may not offer any type of payment or incentive in connection with any recruitment, sponsoring, or enrollment of new Consultants. You may not offer free enrollment or any reduction in the standard enrollment charges as an incentive to new Consultants by refunding any or all of the cost of the new Consultant s original enrollment fee Media promotion JAFRA s corporate offices initiate all press opportunities on behalf of all JAFRA Independent Consultants. You are not permitted to initiate press opportunities or press releases to promote JAFRA, its products, or its opportunity. If JAFRA creates press releases for Consultant use, such press releases must be used as-is and not altered. If you receive a media inquiry regarding JAFRA, you must direct any such question or opportunity to JAFRA at JAFRAcares@JAFRA.com Phone, , and mass media solicitation In the course of your JAFRA Consultant activities or while promoting JAFRA, you may not: use telemarketing or other mass market direct-toconsumer electronic communications send, either directly or indirectly, any form of communications using artificial or pre-recorded voice messages or any form of automatic telephone dialing systems or other automated devices engage in telemarketing activities through the use of manual call center cold calling or similar sales operations In the course of your JAFRA Consultant activities or while promoting JAFRA, you must follow all applicable laws and regulations that apply to unsolicited telephone calls, text messages, s, faxes and other written or electronic communications. Significant fines and severe penalties may result if you do not follow the laws applicable to telephone and mass media solicitations. It is your responsibility to consult with an attorney on these laws and to learn and understand any applicable laws. When sending any that promotes JAFRA, the JAFRA opportunity, or JAFRA products, you may not use deceptive subject lines and/or false header information. You must honor all opt-out requests immediately, and you must immediately forward the opt-out request to JAFRA at jafracares@jafra.com. If you send any that promotes JAFRA, the JAFRA 21

22 opportunity, or JAFRA products, you must, at a minimum, include the following: A clear and conspicuous disclosure that the message is an advertisement or solicitation. A functioning return address. A functioning opt-out notice. Your physical mailing address Before and After Photos Before-and-after photographs must represent the average results that may be expected by a consumer. As with any post relating to JAFRA, you must disclose your relationship to JAFRA. For example, if you are an Independent Consultant, you must include in your post the hashtag #JAFRAIndependentConsultant or say in your post I am a JAFRA Independent Consultant. When taking before-and-after photographs, you must take such photos in the same settings and under the same circumstances. In both the before and after photo, you should have the same facial expression, makeup (or lack thereof), and body position/pose, and the lighting and camera angle should be the same. You are not permitted to edit, photo shop, or use filters on the before or after photos. The photos must not be re-touched in any way. State in the post how long you used the product before taking the after photo (for example, after 4 weeks of twice daily use ), or if the product was only used once, how long after application the photo was taken. Any other material information that would affect how consumers view the photos should be disclosed. When using JAFRA products for the purposes of beforeand-after photos, you must only use the JAFRA products and not use any other skincare products, medications, or devices relating to skincare or undergo any other skincare treatments (like wrinkle-reduction injections, chemical peels, etc.). You must only use JAFRA products as directed. If you are not the person being photographed, you must have written permission from the person pictured to use the photos. JAFRA may require you to include a disclaimer informing consumers of the typical results they can expect to achieve, and you must post the disclaimer provided by JAFRA where it will be visible and readable. Upon JAFRA s request, you must provide JAFRA with a signed declaration that you followed these Guidelines. JAFRA reserves the right to review and approve any material created by you before it is publicly posted or disseminated, or to require you to delete any posts or content. You shall not post or otherwise disseminate any content that has been rejected. Please send your before-and-after photographs and product reviews /testimonials to: jafracares@jafra.com Facials and Demonstration Policy An important part of JAFRA s direct selling business is that clients have the opportunity to try JAFRA products for themselves before purchasing them. However, Consultants should not touch their clients when giving facials, makeovers, or any type of demonstration or sampling of JAFRA products. There are two main reasons for this. First, such facials or demonstrations may not be legal, as the laws governing the practice of cosmetology vary in different states. Second, from a hygienic and safety standpoint, touching clients could transmit bacteria or other microorganisms causing infection, and certain instruments or products could cause injury or adverse reactions. Thus, when giving a facial or any other type of product demonstration, Consultants should instruct and guide clients in apply JAFRA products themselves. This includes back-of-hand facials, meaning that even if the product is to be applied to the back of the hand, the client should apply the product her/himself. JAFRA recommends that facial products be demonstrated on the back of a client s hand instead of to the face. Although a client may want a Consultant to apply the product for her/him, JAFRA recommends that the Consultant politely decline, and say that it is important for the client to learn how to apply the product herself so that s/he can repeat the process when the Consultant is not there Promoting JAFRA at booths or fixed locations Although JAFRA s direct selling model focuses primarily on selling one-on-one or in small group environments, you are allowed to promote (but not sell) JAFRA products at fixed locations (like businesses, salons, and offices) or at a booth another public location as long as you follow all of the Policies & Procedures do not sell products at such locations or booths. You are permitted to do the following at a retail location or booth: Take orders for products Display your business cards, brochures, or flyers created by JAFRA Promote the JAFRA opportunity and enroll people as Consultants Display samples or demonstrate product as long as you do not offer the product for retail sale. Upon request, JAFRA may, in its sole discretion, provide a certificate of insurance if required for a certain event or location. Note that you are not granted any type of insurance or coverage through such a certificate of insurance. Any insurance covering Consultant is the sole responsibility of Consultant. 22 POLICIES AND PRECEDURES

23 To request a certificate of insurance, you must submit a request in writing via to jafracares@jafra.com, subject: Insurance Certificate Request. The request must include the following information: Your name and contact information (address, phone, ), the event location, a description of the event and what you propose to do at the event, the event dates, and any insurance requirements requested by the event. 7.4 ADVERTISING JAFRA encourages its Consultants to enthusiastically sell JAFRA product, but you must follow the following guidelines in order to protect JAFRA s brand, image, and intellectual property. Ads must comply with these Policies & Procedures (including but not limited to the policies pertaining to JAFRA s trademarks, copyrights, images, and logos) You may not engage in any paid online advertising for JAFRA. For example, among other things, you are not permitted to use paid social media ads on any social media platform, use any third party content marketing vehicles (such as Outbrain), or use any search network (such as display banners on Google Display Network or Bing Ad Center) You may not use the official JAFRA logo in any print or digital content you create. Instead, you may use the JAFRA Independent Consultant logo (found on You must use the JAFRA Independent Consultant logo as it is provided and not modify it. Ads must be accurate, professional and not misleading or deceptive in any way. You may promote your JAFRA business on your social media channels using the approved templates and images available through JAFRA s Consultant Connection. If you create your own content on social media, it must comply with these Policies and Procedures. If you list contact information in an advertisement, you must identify yourself as a JAFRA Independent Consultant so others will not be misled concerning your independent contractor status. Here are examples of acceptable formats of identifying yourself when advertising: Your Name JAFRA Independent Consultant Your Name, Manager Title JAFRA Independent Consultant JAFRA reserves the right, at its sole discretion, to request that you remove or cease using an advertisement of any kind, and you agree to comply with such request. If you have any questions about the correct way to advertise, please contact us Online classifieds You are not permitted to use online classified (including, but not limited to, Craigslist, Groupon, or Facebook Marketplace) to list, sell, or retail JAFRA products. You may, however, use online classifieds (excluding Craigslist) for informing the public about JAFRA and the JAFRA opportunity. If you provide a link or URL, it must link to your JAFRA Personal Website or JAFRA.com. You are responsible for complying with the terms of use for those sites, some of which specifically prohibit advertising for a multi-level marketing business Banner advertising You may not place banner advertisements on a website to promote the JAFRA opportunity. You may not use blind ads or web pages that make product or income claims that are ultimately associated with JAFRA products or the JAFRA opportunity Search engines, sponosored links, and pay-per-click ads JAFRA endeavors to promote our brand, our products and our opportunity. As such, Consultants (or third parties acting on behalf of the Consultant) may not promote, bid on or purchase Pay-Per-Click Ads (such as Google AdWords, Bing Ad Center, Facebook, Outbrain or Taboola PPC Ads) or similar pay-per-click advertising in a search engine directing traffic to their JAFRA Personal Website. You agree to cooperate fully with JAFRA s effort to boost the search rank of JAFRA owned sites on search engine results pages (SERPs) in all markets by not competing with JAFRA for branded keyword terms and phrases. This relates specifically to JAFRA Personal Websites (and URLS that follow: name). You may not promote, advertise, or purchase the JAFRA Brand Terms/Key Words. JAFRA Brand Terms/ Key Words include but are not limited to: jafra jafra cosmetics jafra cosmetics international jafra independent consultant jafra royal jafra royal jelly jafra consultant jafra products jafra advisor jafra usa jafra royal jelly ritual jafra auto delivery jafra freedom to be you join jafra jafra representative jafra job jafra make up jafra skincare jafra business kit jafra lipstick 23

24 You may, however, direct website traffic to your own non- JAFRA website if it does not interfere with the jafra.com/ consultant name (JAFRA personal website) page URL structure and does not use JAFRA Brand Terms/Key Words. Do not use URL shortening tools to market your JAFRA Personal Website. URL derivatives include, but are not limited to bit.ly, goog.gl and owl.ly Spam linking Spam Linking is defined as multiple consecutive submissions of the same or similar content into blogs, wikis, guestboooks, websites, comments sections, or other publicly accessible online discussion boards or forums. Spam Linking includes, without limitation, blog spamming, blog comment spamming, and spamdexing (also known as search engine index manipulation). Spam Linking, in the course of your activities as a Consultant or in any way related to JAFRA, is strictly prohibited. You may not use blog spam, spamdexing, or any other massreplicated methods to leave blog comments or links to your JAFRA Personal Website or social media pages Affiliate programs You may not participate or engage in any affiliate marketing or referral marketing program. 7.5 PERSONAL JAFRA WEBSITES The term JAFRA Personal Website refers to the website offered by JAFRA to Consultants. Only one JAFRA Personal Website is allowed per Consultant regardless of title, listed under one name, one city, and one state. JAFRA reserves the right to collect and receive analytics and information regarding the usage of any JAFRA Personal Websites. JAFRA Personal Website use is governed by the website agreement and terms of use found on the JAFRA Personal Website subscription page. You agree to abide by the Privacy Policy set forth on JAFRA s website and to honor and extend those same policies to persons visiting your JAFRA Personal Website. 7.6 LINKING POLICY When directing viewers to your JAFRA Personal Website, in order to avoid misleading or deceiving the viewer, it must be evident from a combination of the link and the surrounding context that the link sends the viewer to the website of a JAFRA independent Consultant. Links that mislead viewers into believing that they are being directed to a JAFRA corporate website, when in fact they are directed to a Consultant s JAFRA Personal Website, are strictly prohibited. The determination of whether a link is misleading shall be made by JAFRA in its sole discretion. Additionally, you are not permitted to do blog link/back linking to your JAFRA Personal Website or external JAFRA website. 7.7 EXTERNAL JAFRA WEBSITES Consultants may develop a blog or website on a blogging platform with the primary purpose of marketing or promoting JAFRA products or opportunity. However, Consultants must not sell JAFRA products on Amazon, ebay, or any other online marketplace, social media site, or website. Consultants are solely responsible and liable for their own website content, messaging, claims, and information. A Consultant blog or website created outside of what is already provided by JAFRA is considered an external website and must be compliant with the following guidelines: The blog must include, clearly on all pages, the naming convention: First Name Last Name, JAFRA ndependent Consultant, Consultant s ID Number, Contact Information, and include a link to the Consultant s JAFRA Personal Website. Consultants may NOT copy, reproduce, download or use the photography, logos or images placed on JAFRA s corporate media channels or websites on an external website without the prior written consent of JAFRA. However, when discussing products, Consultants are encouraged to share the image of the product from their JAFRA Personal Website so as to link directly to the product(s) being discussed. External website must NOT use JAFRA or any JAFRA trademark in its address or present in a manner that may confuse consumers as being a JAFRA corporate website. 7.8 SOCIAL MEDIA JAFRA s social media sites JAFRA Cosmetics and JAFRA USA are active on the following social sites: o Facebook o Facebook.com/jafraworldwide o Facebook.com/jafrausa o LinkedIn o Linkedin.com/company/jafracosmetics o Twitter o Twitter.com/jafracosmetics o Twitter.com/jafrausa o Instagram o Instagram.com/jafracosmeticsint o Instagram.com/jafrausa o YouTube o Youtube.com/user/jafracorporate o Youtube.com/user/jafracosmeticsusa 24 POLICIES AND PRECEDURES

25 o Pinterest o Pinterest.com/jafrausa o Pinterest.com/jafracosmetics o Snapchat o Snapchat.com/jafracosmetics JAFRA wants to create a community on its owned social media channels. We encourage you to help us build this community by liking posts by other JAFRA Consultants, adding your own product reviews /testimonials that are positive and authentic (but do not specifically link to your JAFRA Personal Website) and/or sharing our JAFRA branded content with your network of JAFRA Consultants and/or friends General social media policies JAFRA encourages all Consultants to engage their clients in conversation. The more you get to know your clients beauty needs, the more likely a client will turn to you to help them find a solution. Personal , Facebook and Twitter accounts offer opportunities to stay connected. Word of mouth growth is extremely important to JAFRA and the success of your business. We love hearing what people have to say about our products, income opportunity and all the ways they love sharing JAFRA! Consultants are encouraged to use social media platforms (such as Facebook, Twitter, Instagram, Pinterest, etc.) to share information about JAFRA and their JAFRA business. Because some social media sites are very robust, the distinction between a social media site and a website may not be clear-cut. JAFRA therefore reserves the exclusive right to classify certain social media sites as websites and require that you adhere to JAFRA s policies relating to external websites if you use such social media sites. Posts are defined in this document as all comments, photographs, videos, links and other type of information submitted. Consultants are held fully responsible for any and all posts, actions and activities on their social media platforms. Posts should not be phrased to appear to be endorsed by JAFRA. We encourage the importance of respectful, professional and responsible communication. When using or interacting with JAFRA s social media platforms, or when promoting or discussing JAFRA on your own social media accounts, you must comply with the following guidelines: 1. CLEARLY IDENTIFY YOURSELF AS AN INDEPENDENT CONSULTANT When posting anything on social media relating to JAFRA, you must identify yourself in the post as an Independent Consultant The best way to do this is to add #JAFRAIndependentConsultant When creating social media profiles to promote your JAFRA business, you must clearly identify yourself as a JAFRA Independent Consultant using the following naming order: First Name Last Name, JAFRA Independent Consultant. You may not use JAFRA in the name of your personal or social media page(s) except for the use of the term, JAFRA Independent Consultant. When selecting your profile picture, do not use the JAFRA logo, the profile picture for the official JAFRA corporate profile, or any other JAFRA brand image unless you have prior written permission from JAFRA or the image is specifically provided by JAFRA for use by Consultants on Consultant Connection. You may not use the word official in conjunction with the name JAFRA or any of JAFRA s other names. You may not use a specific geographic location in conjunction with the name JAFRA or any of JAFRA s other names. You may not create any social media page or account made to appear like the JAFRA Corporate page. 2. USE GOOD JUDGMENT Although JAFRA respects your right to express unique opinions and thoughts, always be respectful and considerate when engaging in conversation and posting online relating to JAFRA. You may post open and honest remarks about JAFRA, but your remarks may not be slanderous, false, defamatory, hateful, or personally attack any person, product, or entity. Do not make any postings or link to any postings or other material that is sexually explicit, pornographic, offensive, profane, hateful, threatening, violent, defamatory, libelous, harassing, discriminatory (whether based on race, ethnicity, creed, religion, gender, sexual orientation, physical disability or otherwise), that solicits unlawful behavior, that engages in personal attacks on any person, group, or entity, or that is violation of this Agreement or any of JAFRA s intellectual property rights or the rights of third parties. 25

26 Any communication regarding your JAFRA business should be honest, fair and respectful. You should never post anything that is not meant for public viewing. You should not disparage any JAFRA competitor or any other company, including its customers, its products or other JAFRA Consultants. You may report negative posts or your specific concerns to the JAFRA via at 3. DO NOT SOLICIT ON JAFRA s SOCIAL MEDIA PROFILES On any corporate JAFRA social media profile/page, you may not solicit business or direct people to your own websites or social media profile/page. JAFRA s social media profiles/pages are for all JAFRA clients and Consultants and must remain a safe place for Consultants to send their clients and prospective Consultants without fear of losing them to a competing Consultant. You may not post your replicated website URL or your contact information on JAFRA s Facebook pages. 4. DIRECT CLIENTS TO OFFICIAL JAFRA WEBSITES FOR PRODUCT PURCHASES, COMPENSATION, AND ENROLLMENT You are not permitted to use a social media site or external website to accept product orders (i.e. ebay or Amazon or daily deal sites) or to enroll/sponsor prospective Consultants. You are not permitted to use any social media site or external website to explain the Compensation Plan or any component of it. The only way you are permitted to sell product or enroll new Consultants online is through your JAFRA Personal Website. When clients and prospective Consultants ask about buying product or enrolling in JAFRA, direct them to your JAFRA Personal Website or Jafra.com. 5. DO NOT MISUSE JAFRA s LOGO, IMAGES, OR TRADEMARK You may not copy, reproduce, download or use the photography, logos, images or videos placed on JAFRA s corporate media channels in any manner, including but not limited to, on another website, social media channel (Facebook page, Instagram account, Pinterest account, or otherwise) without the prior written consent of JAFRA. You may, however, share content from JAFRA s social media accounts onto your own social media personal profile or business page, as long as it is evident that the content is being shared and credit is given. 6. CREATE POSITIVE CONTENT IN A PROFESSIONAL AND LEGAL MANNER BE PROFESSIONAL: JAFRA encourages you to create and publish your own content (like photos of JAFRA parties, JAFRA makeup tutorials, etc.) on your own social media sites to promote JAFRA and contribute to the JAFRA community in a positive way. In order to maintain JAFRA s positive image, make sure that the content is professional, high quality, and compliant with all the policies in these Policies & Procedures and in our Agreement. DON T PLAGARIZE: You should identify all copyrighted or borrowed material with citations and links and credit appropriately. When publishing any material online that includes another s direct or paraphrased quotes, thoughts, ideas, photos, or videos, you should always give credit to the original material or author, where applicable. CHECK YOUR FACTS: You should make sure that everything you post online about JAFRA is true. Before posting any online material, ensure that the material is accurate, truthful, and without factual error. Contact JAFRA to fact-check your posts before posting them. 7. RESPECT OTHERS PRIVACY Before sharing a comment, post, picture, or video mentioning or depicting a third party through any type of social media as a promotion or endorsement, you must get that person s consent. This includes other Consultants, your clients, and prospective clients. You should not use anyone s name in any online post unless you have permission to do so. 8. ACT TRUTHFULLY AND ETHICALLY Do not make any misleading or deceptive claims or statements in any online postings. 26 POLICIES AND PRECEDURES

27 Websites and web promotion activities and tactics that are misleading or deceptive, regardless of intent, are strictly prohibited. This may include, but is not limited to, spam linking (or blog spam), misleading clickthrough ads (i.e. having the display URL of a pay per click campaign appear to resolve to an official JAFRA website when it goes elsewhere), unapproved banner ads, or unauthorized press releases. The truthfulness or accuracy of website content or web promotion activities shall be determined by JAFRA in its sole discretion. 9. TAG JAFRA IN YOUR POSTS Anytime you post on social media, JAFRA strongly encourages you to tag JAFRA by placing the hashtag #JAFRA in your post. This will help drive social conversation volume. 10. TALK TO US! If you notice any issues, see any questionable content related to JAFRA, or have any questions about anything related to social media, we have a great Social Media/Digital Team here to help you out. Please call or JAFRA at jafracares@jafra.com with any questions. 7.9 VIOLATIONS OF POLICY JAFRA reserves the right, at its sole discretion, to remove or delete any postings that violate the policies in this section, the Policies & Procedures, or any other terms of our Agreement. You agree that upon receiving notice from JAFRA that a posting or website under your control violates the policies in this section, the Policies & Procedures, or any other terms of our Agreement, you will take immediate action to remove or delete any such posting or website. Section 8: Sponsoring and Leadership 8.1 LEADERSHIP QUALIFICATIONS The JAFRA Compensation Plan, attached to this document as Appendix A, sets out the different requirements for becoming a leader. 8.2 LEADERS OBLIGATIONS If you are a leader, you must monitor any Consultants in your lineage to ensure that they are not making improper product, business, or income claims or engaging in any illegal or inappropriate conduct. JAFRA reserves the right to request documentation from you concerning your sponsoring or leadership activities. 8.3 LINEAGE SUPPORT Leaders are encouraged to lead their lineage by example and to teach the correct behaviors for operating a JAFRA business. Leaders are encouraged to have ongoing contact and communication with the Consultants in their lineage and to dedicate time to training and supporting their downline Consultants. Examples of such contact and communication may include, but are not limited to, newsletters, s, personal meetings, telephone calls, and accompanying downline Consultants to JAFRA meetings, training sessions, and other functions. 8.4 TRAINING ON PRODUCTS, SALES, AND COMPENSATION When sponsoring a new Consultant, it is your responsibility to train the new Consultant on JAFRA product knowledge, effective sales techniques, and the JAFRA Compensation Plan. You are encouraged to help new Consultants become familiar with the resources and tools that JAFRA offers, the Customer Relations Team, and TRAINING ON POLICIES It is the responsibility of every Consultant to read, understand, and follow the most current version of these Policies & Procedures. When sponsoring a new Consultant, it is your responsibility to ensure that the new Consultant is provided with, or has online access to, the most current version of the Agreement, including the Policies & Procedures and the Compensation Plan. 8.6 CHARGING FOR TRAINING EVENTS AND MATERIALS You may not charge or receive any form of compensation or other benefits (such as income, traded or free services, recoupment of costs, charitable donations, etc.) for sponsoring/training other Consultants or providing tools/ sales aides. You may not charge other Consultants for training, require the purchase of any sales tools or materials, or require attendance at meetings 8.7 CHANGE OF SPONSOR Sponsorship changes are not permitted in order to protect the integrity of Consultants lineage structures and to safeguard the hard work of JAFRA s Consultants. The only way that you can validly change your sponsor is through one of two ways: (1) you can cancel your account and then re-join after 6 months from the date of your last order or (2) you can let your account go into Former Status, and then re-enroll as a Consultant under a different sponsor. 27

28 Section 9: Confidential and Private Information 9.1 RESPECTING YOUR PRIVACY From time to time, JAFRA will recognize Consultants, their sales results and their earnings in JAFRA publications. If you do not want this information published, please notify JAFRA in writing at 9.2 PROTECTING CLIENT INFORMATION To protect your clients information, including but not limited to financial information, you are not permitted to retain client credit card or payment information. If you collect clients credit card information for their purchase of JAFRA products, you must destroy that credit card information (via shredding or other confidential method). You are not permitted to retain that credit card information even for that client s future purchases. You may not publish or use clients names, locations, photos, or other information without their consent. 9.3 PROTECTING JAFRA S INFORMATION You are required to protect JAFRA s Confidential Information as described in the Independent Consultant Agreement 9.4 WEBSITE PRIVACY POLICIES JAFRA understands the importance of the privacy of those who visit and use our websites, or who purchase JAFRA products online. See each JAFRA website s privacy policy and terms of use for information on how JAFRA collects and uses your information. Section 10: Compensation, Incentives, Recognition, & Travel 10.1 COMPENSATION STRUCTURE You may earn compensation in accordance with the Compensation Plan, which is attached to this document as Appendix A NO CASH ADVANCES JAFRA does not advance cash or advance any portion of commission or bonuses relating to: cash prizes, cash payouts, trip programs, contests, etc NON-COMMISSIONABLE ITEMS Consultants can buy products from JAFRA from two different categories: 1) Products intended to be resold to clients Consultants can earn commission on these products 2) Products intended to drive your business Consultants do not earn commission on these products. Examples of these products include Business Kits, hostess gifts, business supplies, etc. For a complete list of non-commissionable items, please see an order form GIFTS/REWARDS SHIPMENT AND TAXES Shipments of gifts or rewards depend on the type of incentive, but gifts/rewards are typically shipped within the qualifying month or the following month. Earned incentives are subject to tax reporting to the US Internal Revenue Service (IRS) and are documented on 1099 forms which are sent to the Consultant and to the IRS TRAVEL AND EVENTS JAFRA s sole obligation to any trip achiever or event participant is to provide, if earned, the trip or event benefits set forth in the conditions of that trip Limitation of liability Participation in any JAFRA trip or event is at the sole risk of each participant. Each participant releases and holds harmless JAFRA, its parents, affiliates and subsidiaries, directors, officers, employees, and agents from any and all claims, damages, injuries, deaths, losses, rights, causes of action, actions, suits, debts, sums of money, or other liabilities, either at law or equity arising from or in any way relating to participation in any JAFRA trip. JAFRA is not responsible or liable for any damages or losses of any kind arising out of or related to JAFRA trips, including, without limitation, direct, indirect, incidental, consequential or punitive damages, arising out of participation in any JAFRA trip Auditing To preserve the integrity and effectiveness of JAFRA s programs and incentives, JAFRA may audit participation and qualification records when necessary. This may include, but is not limited to, reviewing orders and JAFRA Independent Consultant Agreements submitted and requesting information from and reviewing records of Consultants and clients when necessary Tax on trip value You will be taxed on the value of any trip earned. Trips are subject to tax reporting to the US Internal Revenue Service (IRS) and are documented on 1099 forms which are sent to Consultants and to the IRS. If Consultants earn travel for two (i.e. for Consultant and a guest), they will be taxed on the applicable combined value. 28 POLICIES AND PRECEDURES

29 Photo policy JAFRA reserves the right to use any photos or videos taken during events for print and publication with no monetary compensation. If you do not want JAFRA to use photos or video of you, you must notify JAFRA in writing prior to the trip Consultant status Your account balance must be current in order to attend any trip/event Additional travelers Only registered Trip Achievers (meaning Consultants who earn the trip) and guests (if the trip allows guests) may participate in the trip, which means unregistered individuals accompanying Trip Achievers may not take part in JAFRA-arranged services including but not limited to air, hotel, ground transportation, meals, or planned activities. Guests under the age of 18 are not permitted. A Consultant cannot attend as a guest. All guests must be accompanied by the Trip Achiever. If the Trip Achiever does not attend, the guest s trip will be automatically voided No cash value Trips have no cash value and are non-transferrable. If you do not attend the trip, JAFRA does not owe you anything. You do not get a refund of any kind if you do not attend the trip Force majure JAFRA shall not be liable in damages for any delay or default in the performing hereunder if such delay or default is caused by conditions beyond its control including, but not limited to weather, acts of God, government restrictions, wars, insurrections and/or any other cause beyond reasonable control of JAFRA On-site registration A valid form of ID will be required to pick up a Consultant s registration packet. A name badge (and vouchers) will be issued onsite to provide access to all functions. When a Trip Achiever travels with a qualified guest(s), both need to be present to receive their registration packet. A Consultant may not pick up a trip packet on behalf of another Consultant or guest. Section 11: Inactivity, Suspension, Holds, and Ending this Agreement 11.1 ENDING THIS AGREEMENT Your rights and responsibilities related to terminating this Agreement are set out in the Independent Contractor Agreement that you signed when you enrolled as a Consultant. JAFRA makes no promises or assurances that the relationship with any Consultant will continue for any period or term VIOLATIONS OF THIS AGREEMENT Your violation of this Agreement, including these Polices & Procedures, and including any amendments that may be made by JAFRA, may result in disciplinary measures including: Termination of your Agreement and JAFRA account Reassignment of your lineage Change in your Consultant/leader status Withholding of compensation Denial of attendance to events or trips Reclamation of JAFRA cars Terminations for breaches of the Agreement or other Consultant behavior violations shall be effective (1) on the date on which written notice is ed, mailed, faxed, or delivered to an express courier to the Consultant s last known address (or address) or to his or her attorney OR (2) when the Consultant receives actual notice of termination (whether in-person, by phone, or otherwise) whichever of these two options occurs first RE-ENROLLMENT If you choose to close your JAFRA account, and therefore terminate this Agreement, you may not re-enroll in JAFRA until 6 calendar months have elapsed from the date on which you placed your last commissionable order. During this 6 month period, you may not purchase or sell JAFRA products, recruit or sponsor JAFRA Consultants, or participate in any other form of Consultant activity or any activity related to JAFRA. The only exception to this policy is that you may purchase JAFRA products as a client as long as those products are for your personal use and not for resale. If JAFRA closes your account due to breach of this Agreement (including these incorporated Policies & Procedures), you are not permitted to re-join JAFRA. JAFRA reserves the right to reject any re-enrollment application LEAVE OF ABSENCE REQUEST AT THE BRANCH LEVEL A voluntary independent branch leave of absence ( Leave of Absence ) is defined as a manager s voluntary resignation from JAFRA s management program; during a Leave of Absence, that manager s branch is no longer considered an 29

30 active branch and is designated as Former Branch Status. JAFRA will review Leave of Absence requests on a case-by-case basis and may require validation of the request. JAFRA has sole discretion to determine whether the validity of a particular request has been demonstrated. When a manager s branch is placed on a Leave of Absence, the resigning manager and her/his Consultants will be reassigned to her/his promoting manager s central branch or to the next active branch in her/his upline as Consultants. In the event there is no active upline, the resigning manager and her/his central branch Consultants will be re-assigned as Consultants to another position within JAFRA s structure by JAFRA MANAGER RE-QUALIFICATIONS A former manager, who is currently a Consultant, may re-qualify (promote) as a manager. When this occurs, the following will take place: The re-qualified manager will be assigned a new branch number All directly or indirectly sponsored Consultants from the former branch will be assigned to the re-qualified branch except for Consultants that were assigned to another branch as a result of manager promotion prior to or during the re-qualification of the manager. The prior downline branches from the former manager s branch (direct or indirect branches) will not constitute part of the requalified branch downline structure. JAFRA reserves the right to amend or remove the standards, policies and rules governing the manager re-qualification at any time without notice in its sole discretion HOLD STATUS JAFRA understands life s occasional exceptional needs and misfortunes. The hold status policy offers a JAFRA leader (at any level of leadership) the ability to place their central branch maintenance on hold for up to three consecutive months one time during a sales year. This is referred to as a Hold Status. During this Hold Status period, the leader will not receive central branch or central district grace periods. For the purpose of upline, the branch remains in place to hold structure. During the Hold Status period, any commissions/bonuses due will be paid according to the leader s title. Reasons for Hold Status include, but are not limited to, the following: Death of family member, sickness, or other. Approval of Hold Status and time period is within the sole discretion of JAFRA. All requests must be in writing and sent by mail, fax, or to JAFRA. 30 POLICIES AND PRECEDURES

31 11/ POLICIES AND PRECEDURES

32 Compensation Plan March 2016

33 Consultant Your JAFRA career begins with the decision to become a Consultant. JAFRA gives you the tools, the support and the programs. It s up to you to put in the time and consistent effort to build your successful future. Benefits By consistently taking advantage of the opportunities for new Consultants, you ll be on the road to a remarkable JAFRA career: Consultant Commission: Ranges from 25% to 50% and is determined based on monthly activity and productivity. Please refer to Loyalty Club Brochure for details. AllConsultants_en.pdf A Word About Profit: As a JAFRA Consultant, you earn a substantial profit on the sale of JAFRA products to your clients. These products are available to you at the wholesale price. By reselling these products at the retail price, you can earn up to 100% profit! A new Consultant must sign JAFRA s Independent Consultant Agreement. All Consultants must abide by the terms and policies stated in the Independent Consultant Agreement. Maintaining Consultant Status A Consultant must place at least one Retail Order during a period of 12 months to remain eligible to place an order. Should more than 12 months lapse since the last Retail Order, the Consultant will be placed on Former status and will need to re-enroll with a purchase of a Business Kit to be eligible to place orders again. A Consultant is considered Active when she has placed a Retail Order in the last four consecutive calendar months. I am confident because I believe in who I am today, and all that I will be tomorrow. 2

34 NEW! Fast Start to Leadership Program! Because you can t wait to make a change in YOUR LIFE. You joined JAFRA for a reason. Maybe you want a steady income, you want to provide more for your family or you really want a business you can call your own. No matter why you joined, it s important to set yourself up for success right from the start. That s where the new FAST START Program comes in to help you succeed FAST! Who can participate? New Consultants with a start date of March 1, 2017 or later. GOAL 1: Earn Consistent Income Do this In your first 3 full calendar months as a New Consultant: GOAL 2: Become a Manager Do this In your first 6 months as a New Consultant Enrollment Month Month 1 Month 2 Month 3 Achieve $1,500 or more Personal Cumulative Ordered & Paid Retail Sales Promote to Manager Maintain Title Maintain Manager Title Promote to Manager and maintain the title for 2 consecutive months Get this One FREE Royal Jelly Ritual Set Get this ipad Mini Repeat the above: Achieve the above sales every 3 months over the next 9 months and receive a Royal Jelly Ritual Set each time you do. To participate in following months, you ll need to meet the requirements for your first 3 full Calendar months as a New Consultant. To promote to Manager, achieve the following in one month: Place a $300+ Personal Cumulative Retail Order. Have 4+ ordering Consultants personally sponsored on your team who each have $300+ in Retail Sales. Reach $2,400 Team Volume (Paid Retail Sales) between you and your personally sponsored Consultants. Only $500 of your total Personal Paid Retail Sales will be applied to the $2,400 goal. In the month you promote to Manager and the month after Each month, repeat the retail order and sales activities as noted above. The participation in this Program is once in a lifetime. 3

35 Manager Your sales and revenue are climbing as you and your Team build through consistent Sales and Sponsoring. You re ready to put your business in the next gear on the road to success! Benefits of promoting to Manager: 3 10% Commission Overrides** on the monthly Paid Retail Sales generated by you and your Consultants in your Central Branch. Plus: Central Branch MANAGER 3 Manager Pin 3 Special Leader meetings. When you promote to Manager, you and your Team create a Central Branch. A Central Branch consists of a Manager and all of the Consultants directly or indirectly Sponsored by that Manager who have not promoted to Manager, as well as any Consultants reassigned to the Branch. Direct Consultants How to promote to Manager during the Qualifying Month: Personal cumulative Retail Sales of $300 or more. 4 Directly Sponsored Consultants, each with Cumulative Retail Sales of $300 or more. Achieve $2,400 or more in Pre-Branch Paid Retail Sales. Indirect Consultants A Promotion to Manager is effective on the first day of the following month. *A Qualified New Consultant for this program is one who achieves $300 or more in Personal Retail Sales in the month they join. **Commission Override is calculated on 50% of the total Paid Retail Sales. 4

36 Maintain your Manager status To maintain your new level as Manager, you must achieve these monthly Central Branch Maintenance Requirements: Personal cumulative Retail Sales of $300 or more Four (4) ordering Consultants anywhere within Central Branch who have a Retail Sales Order* Central Branch Paid Retail Sales of $2,400 or more * Manager s order does not count as one of the Four(4). Grace Period opportunities apply to this title. For more information see page 21. Managers who do not meet the Central Branch Maintenance Requirements will forfeit Commission payment and any applicable bonuses in that month. Re-qualification Consultants entering re-qualification to Manager need to meet the Manager Qualifications on page 4. A Re-qualified Manager s New Branch will include existing and new Consultants she Sponsored Directly or Indirectly, who at the time of her re-qualification, hold the title of Consultant and do not belong to a different Branch. Manager Pin When you promote to Manager, you receive this contemporary logo pin to reflect your success. Note: When two Consultants in the same Lineage and Branch enter qualification to Manager in the same month, each Consultant needs to achieve their goals independently. If Consultant A and B enter in qualification and Consultant B was Sponsored by Consultant A or a direct of Consultant A, all sales and Consultants Sponsored directly and indirectly by Consultant B will not count towards Consultant A s qualification. 5

37 District Manager 1 Open a new revenue channel by building a Central District, promoting a New Manager (Branch). It s like adding an extra engine. Central District Benefits of promoting to District Manager % Monthly Commission Overrides** on the monthly Paid Retail Sales generated by you and your Consultants in your Central Branch. Plus: 3 District Manager Jewelry. 3 Special Leader meetings. What is a Central District? A Central District consists of the Manager s Central Branch plus all directly promoted Branches. How to promote to District Manager 1 Promote 1 Direct Branch. Promotion to District Manager 1 is effective on the first day of the following month. DM1 12% Commission Requirement: 1 Direct Branch 6%-7% Commission CENTRAL BRANCH LEVEL 1: DIRECTLY PROMOTED BRANCHES Central District Maintain your District Manager 1 status To maintain your new level as District Manager 1, you must achieve these monthly maintenance requirements: The circles above represent a Central Branch. 1) Central Branch Maintenance Personal cumulative Retail Sales of $300 or more Four (4) ordering Consultants anywhere within Central Branch who have a Retail Sales Order* Central Branch Paid Retail Sales of $2,400 or more WHEN YOU PROMOTE TO DISTRICT MANAGER 1 You receive your Celebration Locket with a #1 charm and these purple crystals. 2) Central District Maintenance Maintain your directly promoted Branch. * Manager s order does not count as one of the Four(4). Grace Period opportunities apply to this title. For more information see page 21. ** Commission Override is calculated on 50% of the total Paid Retail Sales. 6

38 Re-qualification You can re-qualify for this level by meeting the qualifications under How to Promote to District Manager 1 mentioned on page 6. How you Earn Monthly Commissions with your Central District: For every directly promoted Manager, you ll earn 6% monthly Commission on the Paid Retail Sales of their Central Branch.** For every directly promoted District Manager to an Ambassador, you ll earn 7% monthly Commission on the Paid Retail Sales of their Central Branch.** BUILD A CELEBRATION NECKLACE! Add new charms and crystals as you are promoted to each title within the District Manager level. District Manager 1 who does not meet the Central Branch Maintenance requirements in the evaluation month will forfeit Commission payment, and any applicable bonuses. **Commission Override is calculated on 50% of the otal Paid Retail Sales. Move up to DM2 and increase your Central Branch Commission Override to 13% 7

39 District Manager 2 You re moving up fast, and adding New Branches to your Central District. Central District Benefits of promoting to District Manager % Monthly Commission Overrides** on the monthly Paid Retail Sales generated by you and your Consultants in your Central Branch. Plus: 3 District Manager Jewelry. 3 Special Leader meetings. How to promote to District Manager 2 Promote 2 Direct Branches. Promotion to District Manager 2 is effective on the first day of the following month. Maintain your District Manager 2 status To maintain your new level as District Manager 2, you must achieve these monthly maintenance requirements: 7%-8% Commission DM2 13% Commission Requirement: 2 Direct Branches 7%-8% Commission CENTRAL BRANCH LEVEL 1: DIRECTLY PROMOTED BRANCHES Central District 1) Central Branch Maintenance Personal cumulative Retail Sales of $300 or more Four (4) ordering Consultants anywhere within Central Branch who have a Retail Sales Order* Central Branch Paid Retail Sales of $2,400 or more 2) Central District Maintenance Maintain your two directly promoted Branches. 3% Commission LEVEL 2: 1st LINE INDIRECT BRANCHES * Manager s order does not count as one of the Four(4). ** Commission Override is calculated on 50% of the total Paid Retail Sales. Grace Period opportunities apply to this title. For more information see page 21. 1% Commission All circles represent a Central Branch. LEVEL 3: 2nd LINE INDIRECT BRANCHES WHEN YOU PROMOTE TO DISTRICT MANAGER 2 You add a #2 charm and these fuchsia crystals to your Locket. 8

40 Re-qualification You can re-qualify for this level by meeting the How to Promote to District Manager 2 Qualifications on page 8. How you Earn Monthly Commissions with your Central District and Indirect Line Branches: For every directly promoted Manager, you ll earn 7% monthly Commission on the Paid Retail Sales of their Central Branch.** For every directly promoted District Manager through Ambassador, you ll earn 8% monthly Commission on the Paid Retail Sales of their Central Branch.** Add Indirect Branches and earn more: Earn 3% Commission on the Paid Retail Sales of all Level 2, 1st Line Indirect Branches.** You earn 1% Commission on the Paid Retail Sales of all Level 3, 2nd Line Indirect Branches, when you have 3 or more Direct Branches.** How deep do your Commissions go on Indirect Branches? The number of Levels for which a Leader is eligible to receive Commission Override is equal to the number of existing, directly promoted Branches, often referred to as the Horizontal, Vertical rule. Levels 3 and beyond are paid at 1%. District Manager 2 who does not meet the Central Branch Maintenance requirements in the Evaluation month will forfeit Commission payment and any applicable bonuses in that month. **Commission Override is calculated on 50% of the total Paid Retail Sales. Move up to DM3 and increase your Central Branch Commission Override to 14% 9

41 District Manager 3 By now you re a seasoned Leader and closer to becoming a District Director. Benefits of promoting to District Manager % Monthly Commission Overrides** on the monthly Paid Retail Sales generated by you and your Consultants in your Central Branch. Plus: 3 District Manager Jewelry. 3 Special Leader meetings. How to promote to District Manager 3 Promote 3 Direct Branches. Have $200,000 in Central District Paid Retail Sales (CDPRS) in the last twelve months or sooner. Promotion to District Manager 3 is effective on the first day of the following month. Maintain your District Manager 3 status To maintain your new level as District Manager 3, you must achieve these monthly maintenance requirements: 1) Central Branch Maintenance Personal cumulative Retail Sales of $300 or more Four (4) ordering Consultants anywhere within Central Branch who have a Retail Sales Order* Central Branch Paid Retail Sales of $2,400 or more 2) Central District Maintenance Maintain your three directly promoted Branches and $200,000 in Central District Paid Retail Sales in a rolling twelve-month period. * Manager s order does not count as one of the Four(4). **Commission Override is calculated on 50% of the total Paid Retail Sales. Grace Period opportunities apply to this title. For more information see page 21. Central District DM3 14% Commission Requirements: 3 Direct Branches $200,000 in CDPRS in the last 12 months or sooner CENTRAL BRANCH LEVEL 1: DIRECTLY PROMOTED BRANCHES 8%-9% 8%-9% 8%-9% Commission Commission Commission 3% Commission 1% Commission LEVEL 2: 1st LINE INDIRECT BRANCHES LEVEL 3: 2nd LINE INDIRECT BRANCHES All circles represent a Central Branch. WHEN YOU PROMOTE TO DISTRICT MANAGER 3 Add a #3 charm and these clear crystals to your Locket. Your Celebration Necklace is now complete with charms and crystals from every level you ve achieved. Central District 10

42 Re-qualification You can re-qualify for this level by meeting the How to Promote to District Manager 3 Qualifications on page 10. How you Earn Monthly Commissions with your Central District and Indirect Line Branches: For every directly promoted Manager, you ll earn 8% monthly Commission on the Paid Retail Sales of their Central Branch.** For every directly promoted District Manager through Ambassador, you ll earn 9% monthly Commission on the Paid Retail Sales of their Central Branch.** Add Indirect Branches and earn more: Earn 3% Commission on the Paid Retail Sales of all Level 2, 1st Line Indirect Branches.** You earn 1% Commission on the Paid Retail Sales of all Level 3, 2nd Line Indirect Branches.** How deep do your Commissions go on Indirect Branches? The number of Levels for which a Leader is eligible to receive Commission Override is equal to the number of existing, directly promoted Branches, often referred to as the Horizontal, Vertical rule. Levels 3 and beyond are paid at 1%. District Manager 3 who does not meet the Central Branch Maintenance requirements in the Evaluation month will forfeit Commission payment and any applicable bonuses in that month. **Commission Override is calculated on 50% of the total Paid Retail Sales. Move up to DD1 and increase your Central Branch Commission Override to 15% 11

43 District Director 1 JAFRA rewards achievers like you, those at the District Director 1 level and above, with additional incentives to add new fuel to your drive for success. Benefits of promoting to District Director % Monthly Commission Overrides** on the monthly Paid Retail Sales generated by you and your Consultants in your Central Branch. 3 Potential $300 Monthly Car Allowance See pages 20 for details. Reach the District Director level and become a member of an elite group of Leaders, the Ladies in Red. This pin signifies your membership and accomplishment! 3 Receive $112,500 in District Director Life Insurance Plus: 3 Ladies in Red Pin and District Director Level 1 Ring. 3 First Class mailing of all company publications and communications. 3 Special Leader meetings. How to promote to District Director 1 Promote 5 Direct Branches. Have $250,000 in Central Paid Retail Sales (CDPRS) in the last 12 months or sooner. Promotion to District Director 1 is effective on the first day of the following month. Maintain your District Director 1 status To maintain your new level as District Director 1, you must achieve these monthly maintenance requirements: 1) Central Branch Maintenance Be an Active Consultant+ Four (4) ordering Consultants anywhere within Central Branch who have a Retail Sales Order* Central Branch Paid Retail Sales of $2,400 or more 2) Central District Maintenance Maintain your five directly promoted Branches and $250,000 in Central District Paid Retail Sales in a rolling twelve-month period. DISTRICT DIRECTOR 1 Receive a beautiful genuine amethyst ring. Sparkle and shine with a meticulously crafted, three-tiered 10K white gold ring set that you build as you promote to each title. + An Active Consultant is a Consultant who has placed at least one Retail Order in the last four consecutive months. * Manager s order does not count as one of the Four(4). ** Commission Override is calculated on 50% of the total Paid Retail Sales. Grace Period opportunities apply to this title. For more information see page

44 Central District DD1 15% Commission Requirements: 5 Direct Branches $250,000 in CDPRS in the last 12 months or sooner CENTRAL BRANCH Central District Re-qualification You can re-qualify for this level by meeting the How to Promote to District Director 1 Qualifications on page 12. How you Earn Monthly Commissions with your Central District and Indirect Line Branches: For every directly promoted Manager, you ll earn 8.5% monthly Commission on the Paid Retail Sales of their Central Branch.** For every directly promoted District Manager, you ll earn 9.5% monthly Commission on the Paid Retail Sales of their Central Branch.** For every directly promoted District Director or Ambassador, you ll earn 10.5% monthly Commission on the Paid Retail Sales of their Central Branch.** 8.5%-10.5% Commission 3% Commission LEVEL 1: DIRECTLY PROMOTED BRANCHES LEVEL 2: 1st LINE INDIRECT BRANCHES Add Indirect Branches and earn more: Earn 3% Commission on the Paid Retail Sales of all Level 2, 1st Line Indirect Branches.** You earn 1% Commission on the Paid Retail Sales of all Level 3, 2nd Line Indirect Branches.** How deep do your Commissions go on Indirect Branches? The number of Levels for which a Leader is eligible to receive Commission Override is equal to the number of existing, directly promoted Branches, often referred to as the Horizontal, Vertical rule. Levels 3 and beyond are paid at 1%. 1% Commission All circles represent a Central Branch. LEVEL 3: 2nd LINE INDIRECT BRANCHES District Director 1 who does not meet the Central Branch Maintenance requirements in the Evaluation month will forfeit Commission payment and any applicable bonuses in that month. **Commission Override is calculated on 50% of the total Paid Retail Sales. Move up to DD2 and More Rewards 13

45 District Director 2 You have built a dynamic group of women who are enjoying the JAFRA lifestyle. You have set an example of leadership for your Consultants and been rewarded with more Commissions, Bonuses and recognition. Keep up the momentum! Benefits of promoting to District Director % Monthly Commission Overrides** on the monthly Paid Retail Sales generated by you and your Consultants in your Central Branch. **Commission Override is calculated on 50% of the total Paid Retail Sales. 3 Potential $350 Monthly Car Allowance See page 20 for details. 3 Receive $150,000 in District Director Life Insurance Plus: 3 District Director Level 2 Ring. 3 First Class mailing of all company publications and communications. 3 Special Leader meetings. How to promote to District Director 2 Promote 7 Direct Branches. Have $400,000 in Central District Paid Retail Sales (CDPRS) in the last 12 months or sooner. Promotion to District Director 2 is effective on the first day of the following month. Maintain District Director 2 status To maintain your new level as District Director 2, you must achieve these monthly maintenance requirements: 1) Central Branch Maintenance Be an Active Consultant+ Four (4) ordering Consultants anywhere within Central Branch who have a Retail Sales Order* Central Branch Paid Retail Sales of $2,400 or more DISTRICT DIRECTOR 2 Receive a gorgeous pink tourmaline ring. Sparkle and shine with a meticulously crafted, three-tiered 10K white gold ring set that you build as you promote to each to each level in the District Director Program. + An Active Consultant is a Consultant who has placed at least one Retail Order in the last four consecutive months. *Manager s order does not count as one of the Four(4). **Commission Override is calculated on 50% of the total Paid Retail Sales. Grace Period opportunities apply to this title. For more information see page 21. Move up to DD3 and increase your Central Branch Commission Override to 16% 2) Central District Maintenance Maintain your seven directly promoted Branches and $400,000 in Central District Paid Retail Sales in a rolling 12-month period. 14

46 Central District DD2 15% Commission 9%-11% Commission Requirements: 7 Direct Branches $400,000 in CDPRS in the last 12 months or sooner CENTRAL BRANCH LEVEL 1: DIRECTLY PROMOTED BRANCHES Central District 3% Commission LEVEL 2: 1st LINE INDIRECT BRANCHES 1% Commission LEVEL 3: 2nd LINE INDIRECT BRANCHES All circles represent a Central Branch. Re-qualification You can re-qualify for this level by meeting the How to Promote to District Director 2 Qualifications on page 15. How you Earn Monthly Commissions with your Central District and Indirect Line Branches: For every directly promoted Manager, you ll earn 9% monthly Commission on the Paid Retail Sales of their Central Branch.** For every directly promoted District Manager, you ll earn 10% monthly Commission on the Paid Retail Sales of their Central Branch.** For every directly promoted District Director or Ambassador you ll earn 11% monthly Commission on the Paid Retail Sales of their Central Branch.** Add Indirect Branches and earn more: Earn 3% Commission on the Paid Retail Sales of all Level 2, 1st Line Indirect Branches.** You earn 1% Commission on the Paid Retail Sales of all Level 3, 2nd Line Indirect Branches.** How deep do your Commissions go on Indirect Branches? The number of Levels for which a Leader is eligible to receive Commission Override is equal to the number of existing, directly promoted Branches, often referred to as the Horizontal, Vertical rule. Levels 3 and beyond are paid at 1%. District Director 2 who does not meet the Central Branch Maintenance requirements in the Evaluation month will forfeit Commission payment and any applicable bonuses in that month. **Commission Override is calculated on 50% of the total Paid Retail Sales. 15

47 District Director 3 You are on your way to the top of JAFRA s career path. Benefits of promoting to District Director % Monthly Commission Overrides** on the monthly Paid Retail Sales generated by you and your Consultants in your Central Branch. 3 Potential $400 Monthly Car Allowance See page 20 for details. 3 Receive $187,500 in District Director Life Insurance Plus: 3 District Director Level 3 Ring. 3 First Class mailing of all company publications and communications. 3 Special Leader meetings. How to promote to District Director 3 Promote 10 Direct Branches. $600,000 in Central District Paid Retail Sales (CDPRS) in the last 12 months or sooner. Promotion to District District 3 is effective on the first day of the following month. Maintain your District Director 3 status To maintain your new level as District Director 3, you must achieve these monthly maintenance requirements: 1) Central Branch Maintenance Be an Active Consultant+ Four (4) ordering Consultants anywhere within Central Branch who have a Retail Sales Order* Central Branch Paid Retail Sales of $2,400 or more 2) Central District Maintenance Maintain your 10 directly promoted Branches and $600,000 in Central District Paid Retail Sales in a rolling 12-month period. DISTRICT DIRECTOR 3 Complete your ring set with a brilliant genuine diamond ring. Sparkle and shine with a meticulously crafted, three-tiered 10K white gold ring set that you build as you promote to each to each level in the District Director Program. + An Active Consultant is a Consultant who has placed at least one Retail Order in the last four consecutive months. * Manager s order does not count as one of the Four(4). **Commission Override is calculated on 50% of the total Paid Retail Sales. Grace Period opportunities apply to this title. For more information see page 21. Move up to AMBASSADOR and increase your Central Branch Commission Override to 17% 16

48 Central District DD3 16% Commission Requirements: 10 Direct Branches $600,000 in CDPRS in the last 12 months or sooner 9.5%-11.5% Commission CENTRAL BRANCH LEVEL 1: DIRECTLY PROMOTED BRANCHES Central District 3% Commission LEVEL 2: 1st LINE INDIRECT BRANCHES All circles represent a Central Branch. 1% Commission LEVEL 3: 2nd LINE INDIRECT BRANCHES Re-qualification You can re-qualify for this level by meeting the How to Promote to District Director 3 Qualifications on page 16. How you Earn Monthly Commissions with your Central District and Indirect Line Branches: For every directly promoted Manager, you ll earn 9.5% monthly Commission on the Paid Retail Sales of their Central Branch.** For every directly promoted District Manager, you ll earn 10.5% monthly Commission on the Paid Retail Sales of their Central Branch.** For every directly promoted District Director or Ambassador, you ll earn 11.5% monthly Commission on the Paid Retail Sales of their Central Branch.** Add Indirect Branches and earn more: Earn 3% Commission on the Paid Retail Sales of all Level 2, 1st Line Indirect Branches.** You earn 1% Commission on the Paid Retail Sales of all Level 3, 2nd Line Indirect Branches. ** How deep do your Commissions go on Indirect Branches? The number of Levels for which a Leader is eligible to receive Commission Override is equal to the number of existing, directly promoted Branches, often referred to as the Horizontal, Vertical rule. Levels 3 and beyond are paid at 1%. District Director 3 who does not meet the Central Branch Maintenance requirements in the Evaluation month will forfeit Commission payment and any applicable bonuses in that month. **Commission Override is calculated on 50% of the total Paid Retail Sales. 17

49 Ambassador Through your sharing and leadership, everyone on your Team can enjoy increased personal growth and earnings potential. Benefits of promoting to Ambassador 3 Eligible for Mercedes-Benz E350 or ML350 SUV See page 20 for details. 3 17% Monthly Commission Overrides** on the monthly Paid Retail Sales generated by you and your Consultants in your Central Branch. 3 Receive $225,000 in Ambassador Life Insurance Plus: 3 Ambassador Pin. 3 First Class mailing of all company publications and communications. 3 Special Leader Meetings. How to promote to Ambassador Promote 15 Direct Branches. $900,000 in Central District Paid Retail Sales (CDPRS) in the last 12 months or sooner. Promotion to Ambassador is effective on the first day of the following month. Maintain your Ambassador status To maintain your new level as Ambassador, you must achieve these monthly maintenance requirements: AMBASSADOR PIN Step into this elite circle of achievers and receive this exquisite white gold pin, encircled with genuine rubies as a symbol of your outstanding success. + An Active Consultant is a Consultant who has placed at least one Retail Order in the last four consecutive months. * Manager s order does not count as one of the Four(4) ** Commission Override is calculated on 50% of the total Paid Retail Sales. Grace Period opportunities apply to this title. For more information see page 21. 1) Central Branch Maintenance Be an Active Consultant+ Four (4) ordering Consultants anywhere within Central Branch who have a Retail Sales Order* Central Branch Paid Retail Sales of $2,400 or more 2) Central District Maintenance Maintain your 15 directly promoted Branches and $900,000 in Central District Paid Retail Sales in a rolling 12-month period. 18

50 Central District AMBASSADOR 17% Central Branch Commission 11.5% % Commission Requirements: 15 Direct Branches $900,000 in CDPRS in the last 12 months or sooner CENTRAL BRANCH LEVEL 1: DIRECTLY PROMOTED BRANCHES Central District 3% Commission LEVEL 2: 1st LINE INDIRECT BRANCHES 1% Commission LEVEL 3: 2nd LINE INDIRECT BRANCHES All circles represent a Central Branch. Re-qualification You can re-qualify for this level by meeting the How to Promote to Ambassador Qualifications on page 18. How you Earn Monthly Commissions with your Central District and Indirect Line Branches: For every directly promoted Manager, you ll earn 11.5% monthly Commission on the Paid Retail Sales of their Central Branch.** For every directly promoted District Manager, you ll earn 12.5% monthly Commission on the Paid Retail Sales of their Central Branch.** For every directly promoted District Director or Ambassador, you ll earn 13.5% monthly Commission on the Paid Retail Sales of their Central Branch.** Add Indirect Branches and earn more: Earn 3% Commission on the Paid Retail Sales of all Level 2, 1st Line Indirect Branches.** You earn 1% Commission on the Paid Retail Sales of all Level 3, 2nd Line Indirect Branches.** How deep do your Commissions go on Indirect Branches? The number of Levels for which a Leader is eligible to receive Commission Override is equal to the number of existing, directly promoted Branches, often referred to as the Horizontal, Vertical rule. Levels 3 and beyond are paid at 1%. Ambassador level who does not meet the Central Branch Maintenance requirements in the Evaluation month will forfeit Commission payment and any applicable bonuses in that month. ** Commission Override is calculated on 50% of the total Paid Retail Sales 19

51 Car Program District Directors District Directors will receive a Car Allowance Bonus every month they achieve all Central District and Central Branch Requirements for their corresponding title. When a District Director receives a grace period the Car Allowance Bonus will be forfeited for that month. District Director must maintain the highest paid title achieved since February 1, 2012 to be eligible for this Bonus. Title Bonus District Director 1 $300 District Director 2 $350 District Director 3 $400 Ambassadors Ambassador will receive their vehicle lease once they perform as an Ambassador for six consecutive months. Leader needs to maintain a paid title of Ambassador at lease one month out of a rolling six month period in order to keep her car. Car benefit choice is for a minimum 3 year period. Ambassador Lease will be renewed every 3 years as long as they perform as an Ambassador the last six consecutive months of the current lease. Ambassador may opt to forego the Car Benefit and receive $600 per month Car Allowance Bonus Benefit provided each month Ambassador maintains the Ambassador pay title with no Central Branch and Central District Grace Periods. LUXURY DESERVED THE AMBASSADOR MERCEDES-BENZ CAR PROGRAM A Mercedes-Benz signifies status, class and style and is the perfect reflection of your achievement. As an Ambassador, you will have the opportunity to drive a Mercedes-Benz based on your performance. 20