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b Compliant: Key Policies & Procedures

This is a summary of the bcharmeds key policies. As a new Stylist, these guidelines will help you understand how to most effectively start and build your business. Please review them carefully. We encourage you to print and read the extended Policies and Procedures document available in your Resources library. NEW STYLIST ENROLLMENT & TRAINING 1. Make sure you are enrolled under your chosen Sponsor. If you enroll under the wrong Sponsor due to a system error, you have 10 days from your enrollment date to change Sponsors. (Section 7.4.2) 2. As a new Stylist, you have the right to receive training. You also have an obligation to train those Stylists you sponsor. (Section 5.3) STYLIST OBLIGATIONS 3. You and your Hostesses are obligated to deal fairly and honestly with your customers. (Section 11.2) 4. When you join bcharmed you become an independent contractor. (Section 4.1) You are solely responsible for paying local, state and federal taxes on the income you generate. (Section 4.3) 5. To remain active as a bcharmed Stylist, you must sell $150 PV in any one of the 3 previous calendar months. (Section 13.2) 6. You may not participate in other Direct Selling ventures that sell products that compete with bcharmed, such as jewelry. (Section 11.5.1) 7. All Boutique orders must be submitted within ve days of the date of the Boutique. Showcase and Online-Boutiques may not be open for more than 14 days, with all resulting orders submitted within ve days of closing. (Section 7.3.3) SHIPPING & WARRANTIES 8. For boutique and individual orders of $50 or less, a shipping charge of $5.99 will be charged. For orders above $50, there will be a shipping charge of 10% in the continental United States. For shipping to Hawaii, Alaska and US Territories add an additional 10%. Shipping is free for business supply orders over $30. For business supply orders less than $30 there is a at shipping fee of $5. ($10 for Alaska, Hawaii, and US Territories). (Section 7.3.2)

9. bcharmed products come with a Lifetime Warranty for manufacturing defects, and a 30-day Satisfaction Guarantee. See Section 9 for information on how returns are managed. RETAILING 10. You cannot sell bcharmed products in a retail store, including mall kiosks (Section 6.5.1), nor do cooperative advertising and/or promotion with retail entities. (Section 6.2.4) 11. You can sell bcharmed products on a cash-andcarry basis at fairs, shows, expos and other temporary retailing events (in duration of 24 days or less), but must adhere to specic procedures when you do so. (Section 6.5.2) E-COMMERCE AND WEB MARKETING 12. You may not use or register any name that uses the word bcharmed, or any derivatives, for a URL/domain name, an e-mail address, a nickname, or an online alias. (Section 6.4.1) 13. You may not list or sell bcharmed products on eBay, other online auction sites, or on any online retail store or e-commerce site, nor can you enlist or knowingly allow a third party to do so. (Sections 6.4.4.2 & 6.4.4.3) ADVERTISING & PROMOTION 14. When marketing your bcharmed business, your efforts must promote the good reputation of bcharmed. You must avoid discourteous, deceptive, misleading or unethical practices. (Section 6.2) 15. You must sell bcharmed products in their original packaging and may not repackage, re-label or alter the labels (other than adding a personalized sticker) in any way. (Section 6.2.5) 16. If you want to use a bcharmed logo in your marketing efforts, you must use the Stylist logo and may not use the bcharmed Corporate (without lock) logo without prior written approval. (Section 6.2.1)