P&P for Canada

Consultant Policies & Procedures Last Modified: February 9, 2016 Jamberry Canada

Table of Contents

INTRODUCTION

PRACTICING THE JAMBERRY NAILS VALUES

CONSULTANT STATUS AND QUALIFICATIONS

Basic Qualifications

Continued Permanent Residence

Compensation Plan

Paid-As Title

Consultant Status

Career Title

Online Agreement

Consultant ID

Independent Contractor Status

One Name Per Agreement

Business Entities

Exclusive Territories/Solicitation of Overseas Business

EXCLUSIVE PROMOTION OF PRODUCTS

ETHICAL CONDUCT

LEGAL COMPLIANCE

LICENSES

CONFIDENTIALITY

NON-SOLICITATION

NONCOMPETE

TRANSFERABILITY

INHERITANCE OF BUSINESS

NEW CONSULTANT DEVELOPMENT

Income Claims

Limited Right to Make Income Claims, With Timely Disclosure

Remote Sponsors

Cross Sponsoring

Sponsor Reassignment

Release of Team

Improper Initial Assignment

Legal Action

Minimum Leadership Support Requirements

No Product Purchase Required

ANNUAL RENEWAL OF CONSULTANT AGREEMENT

Personal Website Annual/Quarterly/Monthly Renewal

TERMINATION OF CONSULTANT AGREEMENT

Self-Termination

Cancellation

Home Office Termination

Effect of Termination

Events Upon Termination Of This Agreement

Buy-Back Policy

Compression

Reactivation Policy

TEAM MANAGER LEVEL RESPONSIBILITIES

Commissions Policy And Payout Timelines

Recruitment Fees Prohibited

Account Holds

CORPORATE MARKETING, LEADS AND ASSIGNMENTS

Our Philosophy

TAXES

Income Tax

Sales Tax

Collection Agreements/Arrangements

Exempt Sales

INSURANCE

ADVERTISING, PRESS, TRADEMARK AND PUBLIC IMAGE PROTECTION

Repackaging Or Relabeling

Training Materials

Liability

Trademarks

Advertising and Press

Press Contacts and Leads

Media Promotions

Phone Listing Policy

Chequing/Charge Accounts

ONLINE COMPLIANCE

Disney Compliance

Marketing And Naming of Personal Websites

Restricted Use of Jamberry Trademarked Name

Use of Jamberry in URLS

Use of Jamberry in E-Mail Addresses or Social Networking Names

Use of Jamberry Confidential Information – Names, Addresses, Emails

Social Networking Pages on Facebook and More

Solicitation of Business on Facebook, Consultant Facebook Group, Twitter or Other Sites

Sales Through Auction Sites or Other Internet Sites

Marketing Through Personal Blogs and Other Sites

Third Party Websites that Refer Leads to Jamberry Canada

PURCHASE AND SALE OF PRODUCTS

Blanket Discounts

Sales Presentations

Bonus Buying

Closing Parties and Customer Delivery

Third-Party Consumers

Customer Refunds and Returns

Missing Order Reporting

Customer Order Forms and Sales Receipts

Customer Cancellation rights

Territory Restrictions

International Sales

Out of Stock Products Items

Retail Outlets

Non-Retail Businesses

Mail Order

Consultant-To-Consultant Sales Policy

Rental Space

International Distribution

Marketing Materials Credit

SHIPPING

EVENTS

Best Practices – Opportunity Events

Best Practices – Training Events

Temporary Sales Events

Assistance For Hearing Impaired At Home Office Events

GENERAL PROVISIONS

Website Downtime

Contractual Remedies

Acts of Household Members

Grievances and Complaints

Reporting Policy Violations

Amendments

Indemnification/Offset

Telephone Solicitation

Cumulative Remedies/Waiver

Injunctive Relief

Waiver

Jurisdiction

Partial Validity

Limitation Of Damages

Privacy Policy & Consent

Entire Agreement

COMPANY ADDRESS AND CONTACT INFORMATION

INTRODUCTION

We are very excited that you are considering becoming a consultant of Jamberry Nails Canada Limited Partnership

("Consultant" or "Jamberry Consultant"). Before you take the final step to joining, please carefully review this entire

document. If you agree to comply with the Policies & Procedures listed in this agreement (the "Policies &

Procedures"), please indicate your agreement by signing the Consultant Agreement that accompanies this document.

If you have any questions about any of the terms in this document, please contact Jamberry Nails Canada support at

(801) 796-2205 or toll free at 1-855-416-0221.

PRACTICING THE JAMBERRY NAILS VALUES

At all times, Consultants must:

• Conduct themselves with the highest level of ethics, integrity and professionalism. This includes

maintaining professionalism and courtesy with customers, other Consultants, and members of the Home

Office team.

• Act in good faith at all times.

• Not discriminate against any individual because of age, race, creed, color or any other legally protected

status. Discrimination will not be tolerated.

• Provide helpful customer service with the intent of developing long-term customer relationships.

• Refrain from making disparaging comments or gossiping about others.

• Abide by all the guidelines listed in Consultant Workstation to ensure it remains a positive and supportive

environment.

Jamberry Nails Canada Limited Partnership ("we,"", "us,"", "our,"", "Home Office,"" or "Company") reserves the right to terminate the Consultant Agreement with any Consultant Agreement who does not comply with the Policies & Procedures or fails to operate within the spirit of the Company's values.

CONSULTANT STATUS AND QUALIFICATIONS

BASIC QUALIFICATIONS

You become a Jamberry Consultant when you checked the box indicating your acceptance of the Jamberry Terms &

Conditions during enrollment. Checking the box will be equivalent to an electronic signature.

To become a Jamberry Consultant you must be of the age of majority in the province in which you reside, be a

Canadian citizen or permanent resident, possess a valid Social Insurance Number, maintain your personal website,

and be sponsored by a current Jamberry Consultant. If you do not have a Sponsor, you will be assigned one by the

Company in accordance with our policy on assignments. In order to sign up with Jamberry Canada, you must visit

our website (http://www.jamberry.ca/join/) and submit the online registration form, which includes the electronic

acceptance of the Consultant Agreement and your payment of Cdn $119 for the registration fee and purchase of a

Starter Kit which is sold to you at the Company's cost. The Starter Kit will help you become familiar with the

Jamberry Canada products, services, sales techniques, sales aids, and other matters, and will help you facilitate

sales. The Starter Kit includes the following: 1 random Sheet of Nail Wraps plus three additional nail wraps of your

choice, Jamberry Mini Heater, 6 Nail Files, 3 Buffer Blocks, Cuticle Pusher, 3 Pairs of Salon Scissors, 50 Orange Sticks,

Nail Care Cuticle Oil, two25-Packs of Catalogs, 50 Nail Sample Cards, Alcohol Wipes, Start-Up Guide, Brochures,

Order Forms, Postcard Invitations, and pre-paid access to your Personal Website and back office workstation during

the month you join and the three complete calendar months following your sign-up month. As soon as the Company

approves the Consultant Agreement and has received your payment, you are ready to get started!

CONTINUED PERMANENT RESIDENCE

Currently, Jamberry Canada operates only in Canada. In order to retain your Consultant Agreement with the

Company, you must remain a permanent resident in Canada. The Consultant Agreement does not transfer to another

country in which the Company operates or may operate in the future. To conduct business in another country, you

must resign in your original country and sign the relevant agreement for the new country. Additionally, Consultants

may not solicit international or cross-border business. The Company allows International Sponsorship between

Canada and another country in the Company's area of operations. Please note this pertains to Sponsors only. No

cross-border/international parties are allowed at this time; however, cross border sponsoring and sales from your

personal website are permitted in the Company's current area of operations.

COMPENSATION PLAN

Consultant commissions, bonuses, rewards, and titles are based upon the Jamberry Canada Compensation Plan

which is incorporated into this Agreement by reference. Please review the Compensation Plan for complete details, a

copy of which can be reviewed here: /uploads/cms/docs/CompPlan13_Can.pdf

PAID-AS TITLE

Your Paid-As Title and Career Title are determined by your monthly sales activity and primarily used for commission

calculations and coaching information by the Company and your upline. Your Paid-As Title is determined according to

the Compensation Plan and is based on a number of monthly criteria, including Personal Retail Volume ("PRV"),

Team Retail Volume ("TRV"), Active Legs, and the Paid-As Titles of certain members of your team (as such terms are

defined in the Compensation Plan).

CONSULTANT STATUS

Consultant status is used to determine a Consultant's eligibility to receive bonuses, commissions, and rank

advancements. Definitions of each status level are:

ACTIVE

A Consultant must maintain a PRV of 200 each calendar month to be considered Active. If a Consultant has not

achieved active status during a calendar month, they receive no commissions from their downline, fast-start bonuses,

Matching Advancement Bonuses, or Generational Overrides. Active status is always measured by a calendar month.

However, they will receive personal retail commissions from their personal and customer purchases even if they do

not achieve Active status during a calendar month.

IN PROGRESS

At the beginning of each calendar month each Consultant begins with the status of In Progress until she achieves the

200 PRV. If at the end of a calendar month you remain In Progress, then you still receive personal retail commissions

on your and your customer's retail purchases, but you are not eligible to earn any other bonuses or overrides on

downline sales during any period where you fail to achieve Active status.

CANCELLATION

Consultants must have a minimum of 600 PRV during any rolling 12-month period in order to remain a Consultant

and keep their downline. If they fail to meet this requirement in any 12-month period, they will be canceled which

causes them to be removed from the company downline organization. Their downline and customers will be

compressed to the next upline Consultant who is in good standing.

RESIGNED

Any Consultant who officially resigns from the Company, by providing written notice to the Company.

CAREER TITLE

A Consultant's Career Title is their recognition title or the highest title they have achieved. A Consultant's Career Title

does not change unless they advance to the next career level (see Demotion Policy in Compensation Plan for other

exceptions), unlike a Paid-as Title, which may vary from month to month.

Each Consultant is paid at the title for which they qualify during the period ("Paid-as-title").

ONLINE AGREEMENT

Consultants must read the online Consultant Agreement in its entirety before submitting the on-line Consultant

Agreement.

CONSULTANT ID

All Consultants must provide a valid taxpayer identification number (such as a valid Social Insurance Number). The

Company will use this number for tax reporting purposes. You will be automatically assigned a non-changeable

Consultant ID that has not relationship with your Social Insurance Number.

INDEPENDENT CONTRACTOR STATUS

You understand that you are not an employee of Jamberry Canada and shall not be entitled to receive any benefits

from Jamberry Canada whatsoever. Jamberry Canada shall not be required to make contributions for employment

insurance, Workers' Compensation and other similar levies in respect of payments to be made. You shall be fully

responsible for paying all applicable federal and provincial withholding taxes, source deductions, taxes, employment

insurance premiums, Workers' Compensation contributions and other levies, premiums, license requirement and fees

related to your earnings and activities as a Consultant.

You agree that as a Consultant you are an independent contractor, and not an employee, agent, partner, legal

representative or franchisee of Jamberry Canada. You shall be solely responsible for paying all expenses incurred by

yourself, including but not limited to travel, food, lodging, secretarial, office, long-distance telephone, postage for

product returns and other expenses. You will have and maintain control of the manner and means of your

performance. You will have no power or authority to incur any debt, obligation or liability on Jamberry Canada's

behalf.

For further certainty, the specifics of your legal relationship with Jamberry Canada are as follows:

Control - Subject to the terms of the Consultant Agreement, and other applicable laws, Consultants shall have

complete control and discretion over the operation of their independent businesses including, without limiting the

nature of the foregoing, how much or how little time they may devote to their businesses, and shall be entitled to

establish their own business goals, business hours, and business methods, Policies & Procedures.

Ownership of Tools – The Consultant shall be responsible for the ownership and acquisition of any business tools,

equipment, assets, and expenses, and all business goods, services and intangibles that the Consultant, in his/her

discretion, believes necessary for the operation of its independent business including, without limiting the generality

of the foregoing, the location and appointment of his or her business office, business cards, letterhead, computer

equipment, motor vehicle(s), and other tools and equipment (e.g., phone, office supplies etc.) which he/she alone

deems necessary for operation of his/her business, all of which shall established and/or acquired by the Consultant at

his/her own expense. The Consultant shall also maintain such insurance, such as liability, fire and theft insurance,

during the term of this Consultant Agreement for the benefit of his/her business, in amounts as he/she deems

appropriate, and at his/her own expense.

Chance of Profit/Risk of Loss – Jamberry Canada and the Consultant agree that all expenses incurred by the

Consultant in the operation of his/her business shall be incurred on his/her own account, and be his/her own

responsibility. Jamberry Canada and the Consultant also agree that the terms of the Consultant's compensation is

entirely set out in the Jamberry Canada Compensation Plan, and accordingly, the chance of profit and the risk of loss

inherent in the Compensation Plan, and inherent in the operation of the Consultant's independent business, rests

entirely with the Consultant, with no "expense reimbursement" or "minimum compensation" being offered or

guaranteed by Jamberry Canada whatsoever.

No Power to Bind - While a Consultant shall be entitled to inform others that he/she is an Consultant engaged by

Jamberry Canada in an independent status, he/she shall at no time represent himself/herself to be an employee of

Jamberry Canada, and shall clarify with others, where necessary, his/her status as an independent contractor of

Jamberry Canada. The Consultant has no authority (expressed or implied), to bind Jamberry Canada to any

obligation, and shall not be construed as purchasers of a franchise or a business opportunity.

No Creation of Employment, Agency, Partnership, Franchise or Joint Venture Relationship - The legal relationship

between Jamberry Canada and its Consultants is not intended to create, and does not create, an employer/employee

relationship, agency, partnership, franchise or joint venture relationship between Jamberry Canada and the

Consultant.

Treatment as Independent Contractor for Tax and Other Purposes - Accordingly, the Consultant will not be treated as

an employee of Jamberry Canada for Canadian provincial or federal tax purposes (including, but not limited to:

federal income tax withholding or reporting requirements, federal unemployment insurance and CPP deductions, the

GST/HST, and other like taxes, and provincial employment standards rules and workers' compensation legislation

purposes).

ONE NAME PER AGREEMENT

Jamberry Canada recognizes one name per Consultant Agreement. A Consultant may utilize a support person in her

business. However, the individual who holds Parties and has regular customer contact must be the individual whose

name is on the Consultant Agreement. Further, Jamberry only permits one Consultant per household. A husband and

wife, mother and daughter, or any other combination of individuals in a household may work together under a single

Consultant Agreement, but only one Consultant Agreement per household is permitted. If this applies to you, you

should determine in advance will be listed as the Consultant for purposes of commission payments and

communication with the home office who is only authorized to communicate with the individual listed on the

Consultant Agreement about the specific account.

BUSINESS ENTITIES

The Company will accept Agreements from partnerships, LLCs, or corporations so long as such business entities are

legally organized and recognized in Canada.

EXCLUSIVE TERRITORIES/SOLICITATION OF OVERSEAS BUSINESS

No franchise is granted and there are no exclusive territories for sales or sponsoring purposes. You may only arrange

for sale within Canada. You may not solicit business from other countries unless you have written approval from the

Home Office.

EXCLUSIVE PROMOTION OF PRODUCTS

You are an independent contractor, and the Company imposes no restrictions on any Consultant's participation or

sales activity in other businesses. However, promotion of other competitive business ventures is prohibited at

Jamberry Canada Home Parties or in communication with the Company's customers and any competing direct-sales

business (e.g. companies that offer finger or toe nail products as one of their offerings) is not allowed. Additionally,

should you advance to the Executive Career Title or above, active or public participation in any other direct-selling

venture is no longer permitted. Once you achieve the Executive Career Title for the first time, you will have three

months to wind down your active participation in other direct selling ventures. After the three month transition

period, Executives (or higher) will no longer be permitted to actively recruit for or market any other direct sales

company. This restriction does not prohibit you from belonging to or purchasing products from such direct sales

company. Violation of this policy will result in ineligibility to receive generational overrides, advancement, and

matching bonuses for a minimum of three months. An Executive will still be eligible to receive level overrides,

personal sales bonuses, fast start bonuses, and marketing materials credit. This policy is to ensure you have the time

commitment available to actively support and train your team. Please review the Compensation Plan for a complete

list of Career Titles. A copy of the Compensation Plan can be reviewed here: https://cdn.jamberry.com/v3/s3/jb-

prod-craft-assets/files/CompPlan_USCA_092515_WEB.pdf

ETHICAL CONDUCT

As a Consultant, you agree to conduct your business with the highest standards of honesty and integrity. You agree

to refrain from making negative, disparaging, untrue or misleading comments about the Company, its owners,

directors, officers, associates, other Consultants or any other direct-selling company or such company's products. You

also agree not to engage in any activities that may cause harm to the Company or any other Consultant. Failure to

conduct your business in accordance with this policy may result in action by the Company up to and including

termination.

LEGAL COMPLIANCE

All Consultants shall comply with all federal, provincial and municipal statutes and regulations concerning the

operations of their businesses. You are responsible for your own managerial decisions and expenditures, including

estimating income taxes. We recommend that you keep track of all your business expenses and speak with your

accountant about how your business expenses might affect your income tax return.

LICENSES

Some municipal governments might have ordinances that restrict the way you conduct your Jamberry business.

Contact your municipal government office to determine if any business licenses are required. Also, if you live in a

subdivision or condominium, check with your association to determine if there are any limitations on conducting

business activities in your home.

CONFIDENTIALITY

All lists of customers, your personal team, or other Consultants are proprietary property of the Company and

constitute a business trade secret. Jamberry Canada may make these lists available to you for the express purpose of

supporting you and your personal team to further develop your Jamberry business. You may use these lists only in

connection with your Jamberry business and for no other purpose. You must keep the lists confidential and must not

make the lists available to third parties or to use for any other commercial purpose. You agree that any wrongful

disclosure of the lists or the information on the lists will cause immediate and irreparable damage to the Company

and that the Company may pursue all legal remedies available against you if you violate this provision. This provision

will survive the termination of your Consultant Agreement.

NON-SOLICITATION

As an inducement to Jamberry Canada to enter into this Agreement and in consideration of the mutual covenants

contained herein, during the term of this Agreement and for a period of one year thereafter you shall not directly or

indirectly, on your own behalf or on the behalf of any other person or entity, solicit, induce or hire or attempt to

solicit, induce or hire any Consultant who sponsored you, in your upline, who you personally sponsored, or who was

on your team to terminate or alter her business relationship with Jamberry Canada.

NONCOMPETE

For a period of one year after the termination of this Agreement, you will not own or operate a multilevel social-

selling or direct-sales nail accessory business.

TRANSFERABILITY

Neither this Agreement nor your Jamberry business may be transferred or assigned by you or operated in partnership

with any other person. Jamberry Canada reserves the right to re-assign this Agreement at any time.

On a case-by-case basis, Jamberry Canada may allow a one-time transfer or your Jambery Nails business to a legal

entity owned by you.

INHERITANCE OF BUSINESS

A Jamberry Business may be inherited by a single person, a married couple or a trust which complies with Jamberry's

guidelines, pursuant to a valid will or other appropriate document, or in accordance with the intestacy laws of the

state or province in which the Jamberry consultant resides. A person who inherits an Independent Jamberry Business

must furnish the Company with proper documentation that he/she is the beneficiary and is authorized to represent

the estate. He/she must also execute an Independent Consultant Agreement, fulfill all of the functions of a

Consultant and abide by the terms of the Company's Policies and Procedures.

NEW CONSULTANT DEVELOPMENT

As a Jamberry Consultant, you may sponsor other Jamberry Consultants and build a team. Should you choose to

sponsor Consultants, you are responsible to provide adequate training and consistent communication to new

Consultants you Sponsor, just as you would want provided to you. A variety of tools exist to aid you in making your

training simple and effective. These tools include our weekly Consultant Newsletter, Compensation Plan, online

training materials and videos.

INCOME CLAIMS

The Competition Bureau and the Competition Act regulate claims regarding the amount of income that can be earned

under programs such as the Jamberry program. To avoid compliance issues with these laws, you may not make

income projections or disclose your own compensation when presenting the Jamberry program. Hypothetical income

examples that are used to explain the operation of the Compensation Plan and that are based solely on mathematical

projections may be made to prospective Consultants, as long as it is made clear that the examples are hypothetical

and not based on actual experience, and the Consultant shares at the time of the hypothetical examples, or within a

reasonable time thereafter, Jamberry Canada's Statement of Typical Participant Earnings.

To ensure full compliance with section 55 of the federal Competition Act (Section 55), Jamberry Canada strictly

prohibits Consultants from making representations relating to compensation or life-style (hereafter "Earnings

Representations") under the Compensation Plan, whether to a prospective Consultant or otherwise. Without limiting

the generality of this prohibition, and because Consultants do not have the data necessary to comply with the legal

requirements for making Earnings Representations under Section 55, a Consultant, when presenting or discussing the

Compensation Plan to a prospective Consultant, shall be strictly prohibited from, and shall not make or imply directly

or indirectly, any verbal, physical, electronic or other claims that amount or could amount to Earnings

Representations, and without limiting the generality of the foregoing, this prohibition shall include the making of

income projections, improved lifestyle claims, hypothetical income examples or disclosures regarding a Consultant's

own business income (including the showing of cheques, copies of cheques, bank statements, tax records, or other

similar demonstrative documents).

Furthermore, so that Jamberry Canada may meet its obligations under Section 55 to ensure that (a) no

representations relating to compensation under the Compensation Plan are made by participants in the

Compensation Plan and that (b) that any representations relating to compensation under the Compensation Plan that

may be made, constitute or include fair, reasonable and timely disclosure of the information required by Section 55,

any Consultants that has the reason to believe that this general prohibition against Earnings Representations is being

contravened by themselves or any other person, SHALL HAVE THE POSITIVE OBLIGATION to inform, and SHALL

INFORM JAMBERRY CANADA of the facts relevant to the contravention, such that Jamberry Canada is capable of

ensuring that any representations relating to compensation made under the Compensation Plan comply with the

provisions of Section 55, or are otherwise corrected.

LIMITED RIGHT TO MAKE INCOME CLAIMS, WITH TIMELY DISCLOSURE

Without limiting the general prohibition against Earnings Representations, or the reporting obligations set out above,

a Consultant shall have the following right(s):

(a) To repeat to prospective Consultants, any Earnings Representations found in official Jamberry Canada literature

or on the Jamberry Canada website, provided immediately providing fair, reasonable and timely disclosure of the

following official Jamberry Canada Statement of Typical Participant Earnings, substantially as follows:

Statement of Typical Participant Earnings

The primary source of income of a Typical Participant in the compensation plan (the "Plan") of Jamberry

Canada Ltd. ("Jamberry Canada") is from compensation for the service of arranging for the sale of products.

Personal earnings will vary. A Participant in the plan is defined as an Independent Consultant who actively

engages in the activities necessary to realize the benefits of the Plan (i.e. earning a least four monthly

cheques annually). Typical Participant means a Participant engaged in the Plan for at least one year. A

Typical Participant in the Plan earns between CAD $36 and $998 annually.

Please note that these earnings are estimates and have been derived from the earnings experience of

Jamberry Canada's U.S. parent company, which operates similar and comparable compensation plans,

selling comparable products in the United States and worldwide. These earnings estimates will be reviewed

after 6 months of operation of the Canadian Plan, and updated at that time with compensation actually

received by typical participants in the Canadian Plan. After one year, this Statement of Typical Participant

Earnings will be updated again, and then updated annually thereafter.

For greater certainty, the "Lower" and "Upper" Range information shall be provided by Jamberry Canada on

its website and in other published materials, from time to time, to properly reflect the earnings of a typical

participant in the Canadian Plan, from time to time, and as otherwise required by section 55 Competition

Act, and must be used by the Consultant in connection with the fulfillment of its obligations under this

section.

(b) To make hypothetical income examples to prospective Consultants that are used to explain the operation of the

Compensation Plan, and which are based solely on mathematical projections of information set out in the

Compensation Plan, provided that in using such hypothetical examples the Consultant also immediately provides fair,

reasonable and timely disclosure of the Statement of Typical Participant Earnings, and makes clear to the prospective

Consultant(s) that such prior income examples are hypothetical.

REMOTE SPONSORS

When sponsoring long-distance, Sponsors are strongly encouraged to provide training support and recognition to

their sponsored Consultants. Using notes, handouts, video and Skype during team meetings are effective ways to

include remote Consultants in place of live, local training and/or meeting attendance. The Sponsor is encouraged to:

• Meet Minimum Leadership Support Requirements (see p. 17 Leadership Support Practices)

• Provide all training and support via phone, e-mail, or other effective communication methods or

technologies.

• Arrange with a Consultant in her remote area to have the remote Consultant attend a training session, if

available.

CROSS SPONSORING

Cross sponsoring is strictly prohibited. Cross sponsoring is defined as the sponsorship of an active Consultant or a

terminated Consultant who has been active within the preceding six months within a different line of sponsorship.

This includes the use of a spouse or relative's name or assumed names to circumvent this policy. You may not

demean, discredit or defame other Consultants in an attempt to entice a Consultant to become part of your

sponsored group.

SPONSOR REASSIGNMENT

To protect the rights of all Consultants who work hard to sponsor and mentor others in the business, the Company

prohibits the transfer of a Consultant from one Sponsor to another except under certain situations which are listed

below. As a general rule, Consultants are responsible for their own success. Additionally, the Jamberry organization is

structured to give each consultant access to multiple layers of support from their upline, making a difficult or less

responsive sponsor a less significant hurdle to a consultant's progress. All requests will be denied except as listed

below.

RELEASE OF TEAM

If a consultant no longer desires to maintain a team, she may change her website billing to a hobbyist and her team

will compress up at the next hobbyist compression date.

IMPROPER INITIAL ASSIGNMENT

At the time a new Consultant signs up through the Jamberry website and encounters technology issues, which

assigns them to a sponsor they did not intend to sign under, the Consultant must contact the support department

within 5 days from their sign-up date to be reassigned to the sponsor they initially intended. The original sponsor will

be contacted to verify the mistake.

LEGAL ACTION

A sponsorship change will be permitted in the event a sponsor or her enrollee has a legally binding restraining order

against the other, a police report has been filed involving threats of violence by one against the other, or any

similarly binding legal document from a governmental court or law enforcement agency would suggest no contact

should occur between a sponsor and enrollee.

MINIMUM LEADERSHIP SUPPORT REQUIREMENTS

As a Jamberry Sponsor, you are expected to:

• Actively practice the Jamberry Values as described in this Agreement (see PRACTISING THE JAMBERRY

VALUES).

• Exemplify the cornerstone of Jamberry leadership by maintaining an active and consistent home Party

schedule.

• Actively engage in goal setting and mentoring with the new Consultant.

• Offer training to the new Consultant by phone or in person within 1 week of the new Consultant signing

up to be a Jamberry Canada Consultant. The sponsor should offer several reasonable time slots and be

prepared for the training.

• Allow any new consultant in your downline to attend a Home Party that you are leading or that someone

else on your team is leading within 45 days of the new consultant's activation. Remote Sponsors who live 70

kilometers or more away from you should be supported by phone.

• Return phone calls or e-mails within three business days unless you have pre-notified your downline of

vacation during which you will be unavailable.

• Attend planned meetings and trainings for which you did not call in advance to reschedule or cancel.

• Communicate with your downline monthly by e-mail, phone or in-person meetings to check in with the

downline on business goals and progress.

• Disseminate information from the Home Office to your downline in a timely manner.

NO PRODUCT PURCHASE REQUIRED

There is no financial or product purchase requirement to become a Consultant or to enter, maintain, or advance in

the Compensation Plan. In order to familiarize new Consultants with the Company products, sales techniques, sales

aids, and other matters, and for the sole purpose of facilitating sales, Consultants are required to pay a registration

fee which includes a Starter Kit. The Company also requires that each Consultant maintain a personal website and

back-office workstation, so the Consultant can have visibility into her performance and that of her team. The

Company sells the Starter Kit to new Consultants and makes the Consultant website and back-office workstation

available to new Consultants at or below its cost price. Any products Consultants choose to purchase, including the

Starter Kit, personal website access, and the Business Supplies may be returned for refund under the terms of the

"Buy-Back Policy" below. The Starter Kit does not contain any commissionable products and any products

Consultants choose to purchase in connection with becoming a Consultant are optional.

ANNUAL RENEWAL OF CONSULTANT AGREEMENT

Renewal dates will be the last day of the month one year following the month of the Consultant's start date. If a

Consultant has a start date of November 2011, her renewal date and renewal payment due date, if any, is the last

day of November 2012; i.e. November 30. Consultants will automatically be renewed for a year if they are in good

standing under these Policies & Procedures, have a minimum of 600 PRV in the previous 12 month period (see

Cancellation on p. 9), are maintaining a Personal Website, and are current in the payment of any personal website

fees, and agree to any updated Consultant Agreement. There are currently no fees to renew this agreement,

provided however, that the Company reserves the right to change this practice in the future. Any such fee would be

at or below the Company's cost for providing Consultants with services to facilitate sales including updated official

Company materials. Any renewal fees may be subject to taxes in accordance to federal and provincial law and must

be paid in currency (business credits may not be applied).An annual renewal fee, if any, is subject to change in the

future without prior written notice.

If a renewal fee is required, Consultant must pay her renewal fee online and agree to the latest terms in the

Consultant Agreement. Payment of this fee will constitute an agreement to the terms of the latest Consultant

Agreement and allow the Consultant to remain as a Jamberry Consultant for an additional 12 months, until the next

renewal date. If no renewal fee is required, then Consultant's continuing to sell Jamberry products or services shall

constitute the Consultant's agreement to the latest Consultant Agreement and Policies & Procedures. Failure to pay

the annual renewal fee, if any, by a Consultant will result in the termination of the Consultant Agreement on the first

day of the month following the renewal month.

PERSONAL WEBSITE ANNUAL/QUARTERLY/MONTHLY RENEWAL

A Consultant is required to create a Personal Website and to have access to the Consultant back-office workstation

when she first signs up as a Consultant. The cost of this service for your join month plus the first three full calendar

months after your join month are included in the new consultant registration fee. On the first day of your fourth full

month as a consultant, the credit card on file will be charged for either a monthly fee of twelve dollars (Cdn $12), a

quarterly fee of thirty-two dollars (Cdn $32) or an annual fee of one hundred fifteen dollars (Cdn $115) depending on

which option you've elected. The Personal Website Fee will be automatically charged either monthly, quarterly, or

annually without further notice. Your Personal Website Fee must be current to qualify for monthly commission

payouts. Your workstation will provide an option for you to select the frequency of your payment and to select your

preferred payment method. The Personal Website is provided to you at the Company's cost.

Any Consultant with a Career Title of Executive or higher will receive their Personal Website for no charge. No

refunds will be offered to any Consultant who achieves the rank of Executive or higher during any period in which

they have already paid for the Personal Website (whether monthly, quarterly, or annually). Refunds for the Personal

Website will be provided according to the Company's Buy-Back Policy.

TERMINATION OF CONSULTANT AGREEMENT

The following terms are used to describe a termination of the Consultant Agreement:

SELF-TERMINATION

You may voluntarily terminate the Jamberry Canada Consultant Agreement at any time and for any reason by

submitting a support ticket or email to support@jamberrynails.com. Consultants who resign must also notify their

upline Consultant and any downline Consultants of their resignation.

CANCELLATION

Cancellation means a loss of Consultant status and all Consultant benefits including product discounts, credit,

Company mailings, eligibility for Consultant contests, events and incentives, as well as the loss of all downline

Consultants and commissions. All canceled Consultants' downlines will compress to the next qualified Consultant, in

accordance with our policy on "Compression" in the Compensation Plan, during the following calendar month. The

Consultant Agreement may be canceled:

1. As a result of the Consultant's resignation.

2. At the conclusion of the initial term or any renewal term without notice.

3. At the death or retirement of the individual Consultant (see "Inheritance of Business" on p.13).

4. Immediately upon relocation and change of the Consultant's permanent residence outside of Canada.

HOME OFFICE TERMINATION

The Company may terminate the Consultant Agreement with any Consultant at any time and for any reason by

notifying the Consultant in writing of our election to terminate. The Company may immediately terminate this

Agreement without notice in the event of the Consultant's death, insolvency, assignment for the benefit of creditors,

or misrepresentation in or breach of any provision of the Agreement, violations of policies as herein defined.

The Home Office may also terminate the Consultant Agreement if there has been a breach of any term of these

policies, the plan or the Consultant Agreement, by the Consultant. Upon termination, the Consultant will have thirty

days from the date of termination to provide a written request to Jamberry Canada via email

at Support@jamberrynails.com for a refund of any pre-paid Personal Website fees for months which have not yet

passed. Upon receipt of such request the Company will refund any such pre-paid, but unused amounts, to Consultant

within ten business days of such request. If Consultant fails to make such refund request within the time specified

above, any such pre-paid Personal Website fees shall be forfeited to the Company. For purposes of this Agreement, a

"breach" shall include, but not be limited to, any actions by the Consultant which, in the Company's sole discretion,

the Company believes:

1. The Consultant discredits the Company's name, goodwill or products,

2. Breaches any provision contained in this Agreement, or the New Consultant Start-up Guide;

3. In any way misrepresents the Company's products or business opportunity.

The Company shall notify the Consultant by e-mail of the Home Office Termination at the latest email address listed

with the Company for the Consultant. If the Consultant Agreement was terminated by the Home Office, the

Consultant may not reapply.

EFFECT OF TERMINATION

Terminations of the Consultant Agreement are effective immediately on the date of termination of the Consultant

Agreement by the Consultant or the Company or Deactivation. Upon termination of the Consultant Agreement for any

reason, your personal group will compress as per our policy on Compression. In addition, you will lose any gift

certificates, Product Credits and Business Supply Credits that you have earned. You will receive legitimately earned

commissions only for the last full payment period you were active prior to termination.

In the event that you should choose to become a Consultant again, the Company may accept or reject your

application for any reason at its sole discretion. If your application is accepted, you must start at the beginning

Career Title of Consultant.

EVENTS UPON TERMINATION OF THIS AGREEMENT

YOU WILL:

1. Within five days of termination pay all amounts due and owed to Jamberry Canada;

2. No longer have the right to offer or arrange sales of Jamberry products or services and you must cease

representing yourself as a Jamberry Canada Consultant immediately; and

3. Be ineligible to receive any unaccrued compensation or benefits as a Consultant.

You will cease use of Jamberry Canada Intellectual Property and Confidential Information and will cease holding

Home Parties, trade shows, presentations or otherwise displaying, offering for sale or arranging for sale of Jamberry

products. If you offer for sale or arrange to sell Jamberry products in violation of the foregoing sentence, Jamberry

will be entitled to recover from you Cdn $5,000 as liquidated damages without having to prove actual harm.

If requested by Jamberry Canada, you will return all Confidential Information to Jamberry Canada. You may return to

Jamberry Canada unsold Jamberry products purchased within thirty days of pursuant to the Buy-Back Policy below,

provided that the products are in resalable condition, not discontinued, and are returned with shipping charges

prepaid and insured for their full value during shipment, and Jamberry will reimburse you according to the Buy-Back

policy set forth below. If you decide to return any unsold Jamberry Products, Jamberry reserves the right to offset

any amounts returned to you against previously paid commissions or other rewards. The net refund will be issued

within four weeks from receipt of the returned product.

BUY-BACK POLICY

A Consultant may return any Starter Kits and marketing materials/business supplies that she personally purchased

from the Company during the previous year at any time.

1. Starter Kit

The Consultant Starter Kit may be returned within one year of purchase and is eligible for a refund of up to

90% of the purchase price. The Starter Kit must be returned in its entirety; all contents of the Starter Kit

must be unopened and all items must be unused and in resalable condition in order to receive a refund. The

Starter Kit must be returned to the Home Office via registered mail. A trackable and/or insured (insured for

approximately Cdn $200) shipping method should be used, as Jamberry Canada will not be responsible for

lost shipments. The original shipping and handling fees are not eligible for refund.

Opened Starter Kits will be prorated to the resalable value. Damaged or used items may not be returned.

2. Business Supplies, including those wholesale purchases purchased separately from the Starter Kit

Jamberry Canada offers business supplies and promotional materials, as well as wholesale product, for your

convenience. However, these items are not required to conduct business and may be purchased at your

option. Nevertheless, business supplies and promotional materials may be returned to Jamberry Canada

within 90 days of purchase for a refund of up to 90% of the purchase price, excluding any printed materials

like catalogs, host join brochures, etc., provided that the business supplies and promotional materials are

unopened , unused, and in resalable condition. If you choose to return such business supplies and

promotional materials, you are responsible for the cost of the return shipment and insurance to cover the

shipment. All such returns should be shipped by a trackable means and should be insured for at least the

retail value of the items being returned. Original shipping and handling fees are not eligible for a refund.

3. Personal Website

You may cancel any services contracts or arrangements you have purchased including personal website for

a refund for any reason, (i) provided written notice (the "Cancellation Notice") is provided to Jamberry

Canada, specifying the specific service(s) subject to cancellation (the "Cancelled Service(s)"). Refunds will

be provided for the Cancelled Service(s) pursuant to the policies below. In no circumstances shall you be

refunded for amounts paid in respect of Cancelled Service(s) in any month PRIOR TO the calendar month in

which the Cancellation Notice is delivered. Note however, that if you cancel your personal website

subscription, you will not be eligible to receive commissions or overrides under the plan.

4. Product Inventory Purchases

Consultants may purchase retail products in advance as inventory to sell to the Consultant's customers.

Jamberry pays retail commissions on such Consultant inventory purchases. Inventory may be returned to

Jamberry within 90 days of purchase for a full refund. After the 90 day return period, inventory may be

returned for product credit, but is not eligible for a cash refund except in the event of consultant termination

or resignation. Upon or after resignation or termination, any inventory within a year of the purchase date

may be returned for a 90% refund. Sales Tax will be refunded at 90% for any items being returned upon

termination or resignation. Eligible refunds will be less any commissions and overrides paid to consultant

that are related to the inventory being returned, provided that the inventory is unused and in resalable

condition. If you choose to return inventory, you are responsible for the cost of the return shipment and

insurance to cover the shipment. All such returns must be shipped by a trackable means and must be

insured for at least the retail value of the items being returned. Original shipping and handling fees are not

eligible for a refund.

COMPRESSION

Compression occurs when a Consultant who has sponsored a team is either canceled or her Consultant Agreement

has been terminated.

At the time of a Consultant's Cancellation or Termination of the Consultant Agreement, every Consultant below her

will immediately be compressed up to the next active Consultant with a full functioning, not hobbyist, website in the

cancelled or resigned Consultant's upline.

If a Consultant that was paid-as an Executive or higher in the last four periods is canceled (whether voluntarily or

involuntarily), their downline will only be compressed up under the following conditions:

1. If their Personal Sponsor has been paid-as an Executive or higher at least once in the last four periods,

then the downline will immediately be compressed up.

2. If their Personal Sponsor has not been paid-as an Executive or higher at least once in the last four

periods, then they will be given the following six periods to be paid-as an Executive or higher at least twice.

If the Consultant promotes to Executive in the last of the six month period, then they will be given the

following period to qualify as an Executive again (to meet the 2 periods of being paid-as Executive or

higher).

a. If the Personal Sponsor qualifies under these conditions, then the downline of the canceled Consultant

will be compressed up upon the completion of the qualifications.

b. If the Personal Sponsor does not qualify under these conditions, then the position of the canceled

Consultant will remain permanently vacant.

REACTIVATION POLICY

If a consultant resigns they may request reinstatement at any time and, if approved, will be reinstated under their original sponsor. Their downline organization will not be reinstated nor their previous title. They will be considered a new consultant for all intent and purposes. If a consultant wishes to join under a different sponsor, they must wait for a minimum of six months and purchase a new starter kit after termination before reapplying and will start as a new consultant, without their former downline and title. A Consultant who wishes to reactivate must contact Support at support@jamberrynails.com.

A Consultant who is cancelled because they did not achieve 600 PRV within a rolling 12 month period may not

reactivate at any time. They must wait for a minimum of six months and repurchase a new starter kit after

cancellation and will start as a new consultant without their former downline and title.

Consultants who were terminated by the Home Office may not reactivate at any time, except with the express

consent of the Home Office. The Home Office reserves the right to deny a request for reactivation.

TEAM MANAGER LEVEL RESPONSIBILITIES

Consultants who achieve the Team Manager pay level may be asked to sign an Addendum to the Consultant

Agreement. Please note that the Addendum will be provided to Consultants for their review prior to the completion of

Home Office's standard month-end checks and processes that confirm all promotion levels. If it is determined that a

Consultant did not achieve Team Manager pay level in the preceding month, that Consultant will be contacted by

Home Office and need not execute the Addendum. Consultants must submit the signed form to the Home Office

within 15 days after the month of advancement. (For example, if you advance to the next level on March 28, you

must submit the Addendum on or before April 15 to be paid as a Team Manager in April). Consultants who do not

execute the Addendum at the time of advancement can choose to execute the Addendum at any time in the future,

provided they allow 30 days advance notice. (For example, a Consultant who signs the agreement after the 15 days,

on April 16, will not be paid at Team Manager until the following month, May.) Consultants can opt out of the Team

Manager's Addendum by sending an email to the Home Office at any time. Please allow up to 30 days to process the

request. Consultants may only execute the Addendum once during a 12 month period. The purpose of the Addendum

is to commit Consultant's with the Career Title of Team Manager or above to additional leadership requirements and

expectations, among other things.

COMMISSIONS POLICY AND PAYOUT TIMELINES

Consultant commissions, bonuses, rewards, and titles are based upon the Jamberry Canada Compensation Plan

which is incorporated into this Agreement by reference. Please review the Compensation Plan for complete details, a

copy of which can be reviewed here: /uploads/cms/docs/CompPlan13_Can.pdf ].

• Commissions on your personal retails sales are paid based on the retail value of the products sold. All

other commissions, overrides, and bonuses, are based on the commissionable amount of the product.

• Commissions do not apply to the sale of Consultant-only items (e.g. Starter Kit, business supplies,

promotional items, etc.).

• A commission of 30% will be paid weekly by 11:59 p.m. PT each Friday for your personal retail sales

completed during the period from Wednesday at 12:01 a.m. through Tuesday at 11:59 p.m. PT, i.e. the

period ending three days before the commission is paid out. All personal sales bonuses, level overrides,

advancement bonuses, matching bonuses and generational overrides will be paid monthly on or before the

10th of the month as described below. If you are receiving your payments by check (and not ProPay) your

personal retail sales commissions will be paid monthly, not weekly.

• End-of-Month Payout: All sales bonuses, level overrides, generational overrides, and other payments will

be paid monthly. Your end-of-month payout will be deposited on your card, on or before the 10th of the

following month . If the 10th falls on a weekend or holiday, the commissions will be paid on the next

business day.

• From time to time, we put items on sale at a promotional discount. These special sale items are

commissionable on the sale price of the item and not the regular retail price.

• Marketing Materials Credit, if earned, are credited within 5 to 7 business days after the commission period

(see chart on p. 39).Please do not call to inquire before this time has passed. Promotions occur after the

first of the month following the month when all qualifications are met. Fast Start Rewards are issued weekly

and are typically paid within five business days of when they are earned.

• If you have any issues or discrepancies with your commission report, they must be reported by the end of

the calendar month following the month for which the commission was issued. For example, if you have a

concern about September's commission, which you would have received by October 10th, you must report

that issue to the Home Office by the end of October of that same year. Issues reported after that timeline

will not be researched or adjusted. Send your requests via email to support@jamberrynails.com.

• Online earnings reports list the amount of the commissionable product your downline has ordered each

month. If overpayments are made, amounts will be deducted from future payouts.

• If you elect to not be paid your commissions via the ProPay Debit Card, then your commissions will be

issued by cheque. Commissions paid by cheque will incur a Cdn $2.50 per cheque processing fee.

• Commissions payable by cheque are issued only if Cdn $30 or more is due. Commissions totaling less than

Cdn $30 will be added to the next month's commission and issued when accumulated commissions total

more than Cdn $30.

• If you fail to renew your Consultant Agreement due to inactivity or failure to meet minimum sales

requirements, or if your Consultant Agreement is terminated, you will receive bonuses and commissions

only for the last full pay period prior to the termination (less any amounts withheld during an investigation

preceding an involuntary termination).

• A Consultant is a self-employed, independent contractor of Jamberry Canada. As the Consultant is not an

employee of Jamberry, the Company will not issue the Consultant Form 2200, "Declaration of Conditions of

Employment". Instead, Jamberry Canada will only issue a T4A form to every Canadian Consultant who earns

Cdn $500 or more during the previous calendar year. By the last day of February of each year, Jamberry

Canada will issue to each Consultant a T4A form for the previous calendar year. The Consultant will have to

report the income from her Jamberry Canada business on Form 2125, "Statement of Business or

Professional Activities". Because the Consultant is self-employed, she may be able to deduct certain

business expenses. Each Consultant should discuss this with her tax advisor and/or contact the Canada

Revenue Agency for more information at www.cra-arc.gc.ca.

RECRUITMENT FEES PROHIBITED

To ensure compliance with the Competition Act, Jamberry Canada strictly prohibits Consultants from giving

"consideration for the right to receive compensation by reason of the recruitment into the plan of another participant

in the plan who gives consideration for the same right". While Consultants have the right to sponsor other

Consultants, the Company does not pay any bonuses, commissions or other remuneration, or allow Consultants to

make similar payments, for mere sponsoring/enrolling.

A Consultant understands that there is only one revenue generating event for her, namely the service of arranging

for sale of Jamberry Nails products to retail customers, and acknowledge that all commissions and other

remuneration (including overrides, bonuses, incentives and awards) shall be paid solely as a consequence of a

Consultant's supply of the services of arranging for same and any voluntary training, motivation and marketing

efforts related to same shall be construed as incidental thereto.

A Consultant's remuneration will be paid solely as a consequence of a supply of the service of arranging for the sale

of Jamberry Nails products to retail customers. No remuneration (including overrides, bonuses, incentives and

awards) shall be paid to anyone for the mere sponsorship or enrollment of any other Consultant, or for any other

reason. A Consultant is strictly prohibited from making or representing that compensation is payable for anything

other than arranging for the sale of goods to retail customers.

ACCOUNT HOLDS

Jamberry Canada may, at its option, place a Consultant's account on hold for money owed to Jamberry Canada or for

violation of other policies listed in these Policies & Procedures. If an account is placed on hold, the Consultant may be

prohibited from placing orders, receiving all or a portion of commissions, registering for Conferences or other

corporate events or obtaining other Consultant benefits until the account is current and/or all Policy and Procedure

violations are corrected; or, if the Consultant is in a requalification period, until the requalification period has expired.

SUSPENSION OF CONTRACTUAL OBLIGATIONS

In certain circumstances, Jamberry Canada may agree to allow, as a matter of contract, a Consultant to suspend

their contractual obligations to the Company, on the grounds of maternity or other personal leave issues, provided

the total time during which the contractual obligations remain suspended does not exceed three (3) months in any

one twelve-month period. Consultants may elect to take a leave of absence once every twelve months. The twelve-

month period for testing to determine eligibility for suspending the Consultant Agreement begins at the end of the

last month of any prior leave taken, if any. To request suspension of their contractual obligations, Consultants can

notify Jamberry Canada by e-mailing support@jamberrynails.com.

If a Consultant has earned the rank of Premier Consultant or below for two of the three months prior to requesting

suspension of her contractual obligations and provided the Company agrees to such suspension of contractual

obligations, the Consultant's account will be placed on hold during this suspension period. The Consultant will not be

required to meet the PRV requirements to stay active or to maintain a team. During the suspension period, however,

the Consultant will not be able to access their account, place orders, or receive any form of commissions.

If a Consultant has earned the rank of Team Manager or above for two of the three months prior to requesting

suspension of her contractual obligations and provided the Company agrees to such suspension of contractual

obligations, the Consultant's account will not be placed on hold. Rather, the Consultant will have access to the

Consultant Workstation and personal website during the suspension period. The Consultant will be able to make and

receive retail orders and be paid on persona retail commissions only. The Consultant will not be required to maintain

the PCV requirements needed to remain active or to maintain a team. Jamberry Canada reserves the right to review

requests for suspension on a case-by-case basis to insure that the suspension of contractual obligations policy is not

abused.

CORPORATE MARKETING, LEADS AND ASSIGNMENTS

Jamberry Canada makes a considerable investment in building our general brand and driving awareness that will fuel

all of our Consultants' businesses. Our corporate marketing and public relations efforts are intended to attract new

potential customers and Consultants, which ultimately benefits every Jamberry Canada Consultant.

OUR PHILOSOPHY

1. For building a great social selling business, there is no substitute for leveraging YOUR social network. Home Office

leads should not be expected and are not a way to build a personal business. We do general marketing like press and

events because we know that you can then show this media coverage to your network of people and build

excitement.

2. Our lead and assignment program has been designed to provide customers with the best possible local

experience. By honoring the customer, we believe we build the best business for all Consultants. The Home Office

will allocate Leads and Assignments with the utmost integrity to Consultants whom we deem to be exemplary

members of the Jamberry Canada team and who we believe will provide the best support and leadership to our

customers and new Consultants.

a. A "Lead" means a request made by a customer for more information about Jamberry Canada, interest in

hosting a home party or learning more about the opportunity to become a Consultant.

b. An "Assignment" means a new Consultant who have signed the Consultant Agreement but has not

indicated a Sponsor.

3. We do not make exceptions to this program and we are under no obligation to provide history or explanations for

our Lead and Assignment allocations.

Jamberry includes consultants with full-functioning, not hobbyist websites, in search results as follows:

• Lead Consultants and above will be populated under the JOIN Zip Search

• Consultants must have had a $300+ party anytime in the last two months to be populated under the

HOST search option

• All consultants with any sales within the previous two months are part of the SHOP search option

• All consultants are part of the NAME search option

The corporate marketing and public relations efforts will primarily direct potential customers/ Consultants to our

official corporate website, www.jamberry.ca. While on the official corporate website, the potential customer or

Consultant may learn more about products and Consultant opportunities. The following are examples of qualifications

that Jamberry Canada may require for Leads and Assignments. In general, most, but not all, Leads and Assignments

will be given to a Consultant who:

• Embodies the core values of Jamberry Canada and is an exemplary member of the Jamberry Canada

community.

• Has a full-functioning, not hobbyist, Jamberry Canada Personal Website.

• Has earned the pay rank of Lead Consultant or above in the previous month for leads interested in

learning more about the Consultant opportunity.

• Has qualified in the previous month for leads interested in hosting a Home Party.

• Has sponsored one new Consultant and performed the leadership support practices.

Jamberry Canada has the right to transfer any Consultant who was a Corporate Lead to another team if the Home

Office determines the Consultant is receiving inadequate coaching as per the leadership support practices.

The Company encourages a Consultant to advertise her personal website in online blogs, social media sites, and

other commercial websites as much as possible to drive online sales. However, please note that we have specific

rules around online advertising that include:

• Compliance with our advertising and online policies. When you market your business, always refer to

yourself as a Jamberry Canada Independent Consultant to eliminate confusion between your personal

website and the official Jamberry Canada website. You may never sell your products on any site other than

Jamberry Canada (this includes eBay, Etsy, or other auction sites).

• You may not create search engine marketing campaigns (this includes Google AdWords) as it directly

competes with Jamberry Canada's official website and any advertising placements we are running.

• On Facebook, please keep your paid advertising local and remain within 100 miles of your home.

• You may not offer blanket discounts in your ad as per the policy on Blanket Discounts (see BLANKET

DISCOUNTS).

TAXES

INCOME TAX

As a self-employed professional, it is up to you to maintain complete records regarding your income and expenses.

This will greatly assist you when calculating your taxes every year. There are many tax benefits that can be available

to self-employed individuals, and everyone should consult their own tax advisors concerning how the benefits may

apply to each individual case. Visit the Canada Revenue Agency ("CRA") website ( at www.cra-arc.gc.ca)or call 1-

800-959-8281 for more information.

The CRA requires the Company to send a T4A form to every Canadian Consultant who earns Cdn $500 or more

during the previous calendar year. By the last day of February of each year, Jamberry Canada will issue each

Consultant a T4A form for the previous calendar year.

As a Jamberry Consultant, you are an independent contractor to Jamberry, not an employee. Because of this

distinction, you are self-employed for income tax purposes. You will report your commission income on Form 2125,

"Statement of Business or Professional Activities." As a self-employed individual, you may have significant advantages

in deducting certain business expenses. Examples include home office deductions, business use of your auto, home

computer usage and travel and entertainment expenses. We strongly recommend that you talk with your own tax

advisor to learn how the tax laws apply to your Jamberry business.

Throughout the year, keep all of your receipts for income and expenses in one place. Designate a folder for

paperwork and don't forget to write down mileage that you've traveled in order to conduct your Jamberry business.

This will make it much easier for you to calculate your tax return at the end of the year.

SALES TAX

You will not be treated as an employee for purposes of the GST/HST, QST, PST and other like sales taxes (including

any future harmonized sales taxes). If we are required to charge any such taxes in respect of our supply of goods or

services to the Consultants or to our direct retail customers, we will collect and remit these taxes in respect of our

sales as appropriate. However, we are not responsible for collecting or remitting any sales taxes on your behalf. You

are responsible for collecting and remitting all applicable local, provincial, and federal sales taxes, and for all other

federal or provincial tax compliance obligations imposed on your business, although, as set out below, we may at our

discretion enter into sales tax collection agreements with the federal and provincial taxing authorities.

COLLECTION AGREEMENTS/ARRANGEMENTS

Notwithstanding the foregoing, we reserve the right to enter into sales tax collection agreements with the federal and

provincial taxing authorities which could relieve you of the burdens of charging, collecting or remitting sales taxes

(including GST/HST, QST and applicable PST). Where applicable, we will notify you of the implementation of such

agreements, and will charge and collect sales taxes accordingly.

Where we choose to enter into a sales tax collection agreement, you agree that we may jointly elect on your behalf

to have the applicable procedures, including section 178 of the Excise Tax Act, apply where approval has been

granted by the applicable tax authority.

Where we have been approved to operate under any such agreements, you agree to follow the appropriate

procedures.

EXEMPT SALES

If you're offering or arranging for sale of products to a tax-exempt organization, we can refund the tax from the

order.. The organization will need to provide satisfactory evidence of its entitlement to the tax exemption and a Sales

Tax Refund form (/uploads/cms/docs/SalesTaxRefundRemittance_040314.pdf) to support@jamberrynails.com. For

more information about sales to tax-exempt organizations, please contact Jamberry Canada.

INSURANCE

As an independent business owner you are responsible for providing general liability insurance coverage for your

business. We highly recommend contacting an insurance agent and obtaining general liability insurance for your

business. Consider speaking with your insurance agent about whether or not you need coverage for a small and/or

home- based business. If you are using a vehicle for your business, you can you also discuss auto insurance.

Jamberry Nails does have a comprehensive liability insurance policy that covers any and all product liability claims

against the Company. If you have a vendor event and the organizer requires proof of our product liability insurance

or requires the event organizer to be listed as an additional insured on our policy, please email

support@jamberrynails.com at least 30 days prior to your event so that we can make the necessary arrangements.

ADVERTISING, PRESS, TRADEMARK AND PUBLIC IMAGE PROTECTION

REPACKAGING OR RELABELING

Because repackaging could violate laws or result in civil liability, all products must be sold in their original packaging

only and may not be altered. Offering or arranging sales of half sheets of nail wraps is strictly prohibited and will void

the warranty.

TRAINING MATERIALS

Consultants may not produce, distribute or sell DVDs, videotapes, audiotapes and other training materials bearing the

Company brand and name. If you have suggestions for training material, please submit your ideas to the Home

Office by e-mailing support@jamberrynails.com.

LIABILITY

1. Jamberry Canada cannot guarantee or in any way be responsible for Jamberry products purchased from

sources other than Jamberry Canada.

2. Jamberry Canada cannot guarantee or in any way be responsible for products that are not officially part

of the Jamberry Canada product line.

3. Jamberry Canada cannot guarantee or in any way be responsible for products that have been imprinted

with the Jamberry trademark by sources other than Jamberry Canada.

4. Jamberry Canada cannot guarantee or in any way be responsible for products that are used or applied in

a manner inconsistent with the stated intent or instructions of Jamberry Canada.

5. Jamberry Canada cannot guarantee how a customer's nails will react to its nail wraps. If you or a

customer notices that the nail wraps are causing dryness or damage to the nails, please follow the removal

instructions, follow industry nail care advice, and wait three weeks before applying a new set of nail wraps.

TRADEMARKS

1. Consultants' duplication of Jamberry trademarks or service marks is prohibited. Examples of Jamberry

trademarks include, but are not limited to, Jamberry, or the Jamberry logo. Display or sales of Jamberry

product in retail or service establishments of any kind are inconsistent with the purpose for which the

trademarks are registered.

2. When reproducing the Jamberry logo, it must not be altered in any manner or form.

Jamberry Consultants may not duplicate the Jamberry trademark for private use or for the intention of

offering or arranging sale of non-Jamberry products to others (See Branding and Logo Usage

Guidelines /uploads/cms/docs/BrandingLogo%20Usage%20Guidelines_Jamberry-043014.pdf)

ADVERTISING AND PRESS

You may advertise in local publications and online, but must make sure your advertisement is accurate, professional

and not misleading in any way. You must always list your Jamberry Canada personal website address and use only

official Jamberry logos and images. If you list contact information, you must identify yourself as an Independent

Consultant so that there will be no confusion that you represent the Home Office. You may advertise sponsoring

opportunity events, home parties or any other Jamberry Canada events you choose. You may not run advertisements

that feature specific products for sale or blanket promotions (please review our policy on blanket discounts).

PRESS CONTACTS AND LEADS

The Home Office and our public relations firm are the primary points of contact with any and all journalists, top-tier

bloggers*, editors, celebrities and large-scale fashion and beauty influencers on behalf of Jamberry Nails. Any

Consultant wishing to contact any of the aforementioned press or media entities, even if they are hyper local, is

required to contact the Home Office Marketing Department first. We may already be working with them, and if we

are not then we can work with you to further your goal in working with them while ensuring you are compliant with

our policies and procedures regarding these relations. Please direct any and all questions and media inquiries

to pr@jamberrynails.com.

*Top-tier bloggers include any blog that has a reach/following of 5,000+ people. If you are contacted with a blogger

that is classified as a top-tier blogger, please forward their message and contact information

to pr@jamberrynails.com.

MEDIA PROMOTIONS

The Home Office initiates all television, cable TV, radio, Internet, newspaper, newsletter and magazine interviews,

features and paid advertisements. Jamberry Consultants may not initiate, authorize or implement national or regional

media publicity. Consultants, however, are encouraged to initiate/implement local media interviews.

All interviews with the media must be handled through the Company Marketing Manager. Whether the media outlet

pursues you or vice versa, you must inform the Company before the interview is conducted (no exceptions). Contact

the Home Office Marketing Department immediately and refer the reporter/writer to our public website for contact

information. If you are approached by a member of the national media about contributing to a story, you must refer

her or him to the Company immediately. Contact support@jamberrynails.com.

The Company requires Consultants to list the Jamberry Canada web address in addition to any personal contact

information. The Company must approve proposals for regional or national media promotions in advance. Look online

in the Consultant Workstation for high-resolution logos and advertising guidelines.

PHONE LISTING POLICY

A business phone number may be listed in the following manner:

Name, Career Title with Jamberry Canada

Independent Consultant

Address

Phone Number

CHEQUING/CHARGE ACCOUNTS

Jamberry Consultants may not use the trademark or trade name Jamberry on bank accounts, credit applications with

local suppliers or other business forms. Chequing accounts can simply be designated as "Business Accounts." Or, if

you need to list a business on your chequing account, credit application or other form, use your name and "Jamberry

Independent Consultant." The intent of this is to avoid any implication that a Consultant business is the Corporate

Office.

ONLINE COMPLIANCE

Jamberry Canada builds our brand for the general benefit of all Consultants. Thus, our trademarked brand name

cannot be used to drive traffic away from our corporate site. Our corporate site allocates Leads to all qualified and

active Consultants. Infractions may result in the immediate termination of a Consultant account.

You may not represent yourself in any way online that detracts from the Jamberry brand. You may only have a

Personal Website through Jamberry Canada. In compliance with laws and Direct Selling Association policy, all

Independent Consultant marketing both in print and online must clearly appear as though it is coming from an

independent representative of the Company and not lead the consumer to think they may be interacting with the

corporate office. Furthermore, any ad in which the trademarked Jamberry name or logo is used must be approved by

the corporate office. Corporate-approved advertisements will be made available online in the Consultant Workstation.

DISNEY COMPLIANCE

Click here for the rules and guidelines regarding the Disney Collection by Jamberry.

MARKETING AND NAMING OF PERSONAL WEBSITES

Using a generic extension like shop, nail shields, cities or major regions, etc., is not allowed as it appears to the end

user that this is a corporate site URL. Your extension must relate to your name. You cannot use any name like

www.jamberry.ca/nailshields; www.jamberry.ca/shop; or www.jamberry.ca/ontario.

RESTRICTED USE OF JAMBERRY TRADEMARKED NAME

The trademarked Jamberry name cannot be used in any Google AdWords or other search engine marketing

campaigns of sponsored links. This includes the use of your Personal Website, since this contains jamberry.ca. All

web advertisements must clearly contain the descriptor of Independent Consultant in both the title and description

field.

USE OF JAMBERRY IN URLS

You may not use jamberry, jamberrynails, or any derivative in a registered URL with any extension. This is in

violation of our trademarked name and can result in the termination of a Consultant account. For example, you

cannot register or use any URL like www.myjamberry.ca or www.jamberrynails.tv, etc.

USE OF JAMBERRY IN E-MAIL ADDRESSES OR SOCIAL NETWORKING NAMES

You may not use jamberry, jamberrynails or any derivative of that in any e-mail addresses or social media names.

For example, you may not use anything like jamberrynails@gmail.com or jenniferjamberry@gmail.com or Jamberry

Arizona for a Facebook group page. If you do this, you may be required to change your email address or the social

media name before you are eligible to receive commissions or overrides.

USE OF JAMBERRY CONFIDENTIAL INFORMATION – NAMES, ADDRESSES, EMAILS

As a Consultant you may be given access to certain information about your downline including names, email

addresses, addresses, phone numbers, etc. All of this information is confidential and should not be used for any

purpose other than Jamberry business. You are restricted from using this information to send invitations to or

information about other direct sales companies, school fundraisers, personal issues, or the like. If you misuse this

information, your Consultant Agreement may be terminated and/or your access to such information may be removed.

SOCIAL NETWORKING PAGES ON FACEBOOK AND MORE

You cannot create a fan page on Facebook or any other social networking site that appears to be the corporate

office. However, you may create a site that includes the term "Independent Consultant for Jamberry" in the name.

You cannot use the word "official" or anything similar. You cannot create an alias for any sites like Twitter or others

that use any permutation of the Jamberry name. The social network page cannot make mention of "Jamberry"

without being qualified by "Independent Consultant for Jamberry" or "Jamberry Independent Consultant."

SOLICITATION OF BUSINESS ON FACEBOOK, CONSULTANT FACEBOOK GROUP, TWITTER OR OTHER SITES

Consultants may not use the Jamberry Official Facebook Fan Page or Consultant Facebook Group to solicit business,

drive people to your Personal Website, or sign up team members. An additional list of rules for the Consultant

Facebook Group can be found on the Consultant Facebook Group Home Page and the Consultant Start-Up Guide.

SALES THROUGH AUCTION SITES OR OTHER INTERNET SITES

Jamberry Consultants may not sell Jamberry products on any website other than her personal Jamberry website

(including site such as e-bay, craiglist, or Groupon). Jamberry Consultants may not display product images on other

websites with the intent to sell.

You may NOT offer or arrange sales of Company products (including Business Supplies) through any online auction

service or any other website. Nor may you advertise your business or the business opportunity through online

auction services. We have a no-tolerance policy on Internet sales and any infractions may result in immediate

termination.

MARKETING THROUGH PERSONAL BLOGS AND OTHER SITES

If you maintain a blog, email, newsletter, or website outside of the Personal Website that Jamberry makes available

to its consultants, you may not market, sell, or promote any other products or direct sales companies alongside

Jamberry products. Doing so may result in your suspension or termination of the Consultant Agreement.

THIRD PARTY WEBSITES THAT REFER LEADS TO JAMBERRY CANADA

What is an affiliate program?

An affiliate program is a marketing practice in which Jamberry Canada pays certain third party websites for each new

customer or Consultant they drive to the jamberry.ca websites through the affiliate's own marketing efforts. Our

primary goal for our affiliate program is to acquire new customers so that we can direct business to our Independent

Consultants.

Can Consultants become affiliates?

No, Consultants cannot be affiliates. Instead, Consultants earn commissions for sales of products under the

Consultant Compensation Plan. So, even if we pay an affiliate commission on an order to an outside third-party

website, the new customer is referred to a Consultant who can offer and arrange sales of products to the new

customer and in turn will receive a commission on the sale of the product.. If you have questions about the Jamberry

affiliate program, contact us at support@jamberrynails.com.

Home Office Sponsored Co-Branded Promotions or Giveaways

Jamberry Canada reserves the right to partner with other brands or websites to create occasional co-branded

promotions or giveaways. The purpose of these promotions is to gain awareness among (and access to) a new set of

consumers who may not otherwise know about Jamberry Canada. Our primary goal is to acquire new customers so

that we can direct business to our Independent Consultants.

In addition, partnering with well-known and highly-regarded brands promotes Jamberry's fashion authority and raises

overall brand awareness – helping open doors for our Consultants' own personal businesses.

Please note: as a reminder to our Consultants – in order to enhance the end-user experience, we request that

Consultants do not use these home-office sponsored promotions as a way to direct traffic to their personal websites.

(For instance if there is a contest where a website asks users to submit comments related to the promotion, please

do not use the comments as a way to promote your personal website.) As you can imagine, this activity does not

support the brand awareness goal and can cause confusion among people new to the brand. All leads acquired from

this promotion will be distributed through our normal lead referral program.

PURCHASE AND SALE OF PRODUCTS

Jamberry is a direct-to-consumer business, and a Consultant's success with customers depends on personal

relationships. Through direct sales, the consumer may try before buying and receive proper individual instruction in

product usage, both before and after the sale. Therefore, Jamberry Canada's policies regarding sales are intended to

steer Consultants away from the pursuit of the one-time only, impulse sale, toward long-term, relationship-based

sales. That is why Jamberry Consultants are encouraged to conduct in-person informational Home Parties for

individual consumers or groups.

BLANKET DISCOUNTS

You may not offer your Consultant discount to the public at large, including friends and family. This prohibition does

not apply to sales pursuant to any Fundraising programs that the Company may have in place at any given time or to

wholesale sales to Salons. Your personal discount is for personal purchases only. You may however, buy gifts for

others with your discount.

You are prohibited from offering a blanket discount at Home Parties, through your personal website, or other

marketing channels, including Facebook. This includes "25% off everything at my Home Party" or place an "online

order with me and I will rebate you 15%." Any other permutation of an offer that serves to undercut the retail price

of Jamberry is restricted.

You are prohibited from offering any discount on the Starter Kit, registration fee or incentive to get a new consultant

to enroll under you. The Independent Agreement must be between Jamberry and the independent consultant

without modification.

You may however offer specific, time limited, occasional incentives such as "book a Home Party tonight and get $25

off your order," or, "spend over $100 and receive free shipping," so long as your promotions (including free

shipping):

• Are offered to a limited group of customers (such as members of a club, or a specific group of individuals,

but not, for example, an open invite to anyone who can view your Facebook profile).

• Run for no more than 3 days.

• Occur no more than one time per quarter.

You may then personally incur the cost of the shipping or specific promotion for your customers.

Any promotional discount that contributes to a Consultant's minimum PRV requirements for earning overrides or her

volume rebate will be grounds for termination of her Consultant Agreement with the Company by the Home Office.

We expect our Consultants to use their conservative discretion when interpreting the terms of this policy.

SALES PRESENTATIONS

At sales presentations, you will truthfully represent the Company, yourself and the products. You may not use any

misleading, deceptive or unfair sales practices. Explanation and demonstration of products offered will be accurate

and complete, including but not limited to, price, terms of payment, refund rights, guarantees and after- sales service

and delivery. Personal or telephone contact will be made in a reasonable manner and during reasonable hours to

avoid intrusiveness. Immediately discontinue a sales presentation upon request of the consumer. Also, refrain from

using comparisons which are likely to mislead, and which are incompatible with the principles of fair competition.

BONUS BUYING

The success of the Company depends on retail sales to the end consumer. It is possible to conduct a healthy

business with no product inventory other than your samples. While the Company recognizes that you may wish to

purchase certain products for your own use, or in some cases, for "instant delivery" to customers in need of last-

minute gifts, it strictly prohibits the purchase of products in unreasonable amounts and prohibits the purchase of

products only or primarily to qualify for compensation levels or incentive programs. This is one of the unethical

practices that we refer to as "Bonus Buying" and is strictly prohibited. Bonus buying may also result in the immediate

termination of a Consultant Agreement.

Bonus Buying includes:

1. The sponsorship of individuals without their knowledge and/or execution of an Consultant Agreement on

behalf of others without their knowledge;

2. The fraudulent sponsorship of a Consultant;

3. The sponsorship or attempted sponsorship of nonexistent persons as Consultants ("phantoms");

4. The use of a credit card by or on behalf of a Consultant when the Consultant is not the account-holder of

such credit card;

5. Subsidizing the entire or partial cost of a customer purchase or New Consultant Starter Kit purchase that

counts towards your volume or adds a Consultant to your team. This includes offering a blanket discount or

rebate on the purchase of goods;

6. The purchase of product to qualify for contests, fast-start bonuses, promotions, personal sales

requirement for coaching commissions or pay rank;

7. Maintaining excessive inventory. Consultants may not inventory load, encourage others to inventory load

or represent that there is any obligation to purchase products, literature or other sales aids except for the

Starter Kit, nor shall they represent that overrides, bonuses or other earnings may be obtained solely from

the purchase of products rather than the sale of products. Inventory is not a component of our business and

should not be carried beyond the month in which it is intended to be sold.

CLOSING PARTIES AND CUSTOMER DELIVERY

All parties must be closed and submitted within the Jamberry Canada system within five days of the actual home

party orders being given to the Consultant. Home Parties must close in their entirety within fourteen days of holding

the actual Home Party. If a customer or party order is shipped directly to a Consultant, the Consultant must deliver

the orders to the customers within five business days of receipt. Any violation of this provision may result in

immediate termination of the Consultant Agreement with the Compnay by the Home Office.

THIRD-PARTY CONSUMERS

Consultants who cultivate business contacts must remember that the business can purchase Jamberry products as

gifts for employees or clients, but there may not be a resale value attached to the products. Consultants cannot

become a "vendor" to another business. Consultants who offer or arrange sale of Jamberry products to a business for

gifts must include a personal letter with each gift that provides information about how the end-user can receive

personal service from the Consultant. Large-scale sales of Jamberry product to regional or national companies are

prohibited since they do not lend themselves to the development of personal relationships and personal service that

Jamberry is based upon.

CUSTOMER REFUNDS AND RETURNS

You must comply with the Return Policy and procedures that can be found

here: /uploads/cms/docs/03.2013.Jamberry Return-Exchange Form.pdf

Customers and consultants are only eligible to return up to $1,000 of retail products during any 12 month

period. Any attempt to return products for a refund in excess of $1,000 will be denied and such returns are ineligible

for a refund.

MISSING ORDER REPORTING

Any order that has not been delivered must be reported within 45 days of the original order date. Jamberry will not

resend any order past the 45 days.

CUSTOMER ORDER FORMS AND SALES RECEIPTS

All Consultants making person-to-person sales to customers (including any sales subject to provincial direct selling

requirements) shall ensure that the customer is provided with the then current copy of the Jamberry Canada Sales

Order Form, properly completed, and signed by both the Consultant and the customer. The Sales Order Form sets

out, among other things, the Buyer's Cancellation Right afforded to the customer under provincial law. Consultants

must ensure that all information fields in the Sales Order Form are completed, including the following:

(1) the date of the transaction;

(2) name and address of the selling Consultant; and

(3) the signatures of the selling Consultant and the customer, and the location where the Form was signed.

In addition, the Consultant shall orally inform the customer of his or her cancellation rights.

Consultants are required to keep a copy of each Sales Order Form for their own records, and shall be required to

retain same for a period of at least seven (7) years.

Where a customer places an order through a Consultant's personal website, the customer will be required to

positively accept the sales contract during the order process, and will thereafter be provided with an Electronic

Receipt providing printable evidence of the sales contract, and otherwise providing disclosure as required by

provincial law. Consultants will be provided with a copy of each Electronic Receipt for their own records, and shall be

required to retain same for a period of at least seven (7) years.

CUSTOMER CANCELLATION RIGHTS

Consumer protection laws in Canada's various provinces generally requires a mandatory 10 day cooling

off/cancellation period for sales of products or services and effectively requires that every purchaser be given the

unqualified right to cancel the direct sale contract, within 10 days of purchase. This right is set out on the back of the

Jamberry Nails Order Forms.

A Consultant is required by law to tell her customers about their right to cancel orders within ten business days. If a

customer cancels an order within the applicable cancellation period, a Consultant must promptly refund the

customer's money (as long as any products the customer received are returned to the Consultant in substantially the

same condition). This includes an order for personalized products. If a customer cancels an order that the Consultant

has already submitted to the Company, please contact Support at support@jamberrynails.com.

TERRITORY RESTRICTIONS

There are no exclusive territories granted to anyone, and no franchise fees are required.

INTERNATIONAL SALES

Due to complex legal and tax considerations involving international sales, no sales or recruitment efforts may be

made outside Canada, unless you have received written approval from the Home Office.

OUT OF STOCK PRODUCTS ITEMS

The Company will quickly ship all products currently in stock. Any out-of-stock items (unless discontinued) may be

placed on back order and will be distributed upon Company receipt of additional inventory. A Consultant will be

charged and granted commissions on future ship items once the order is submitted. Items designated for future ship

may be cancelled on a Consultant's request and a credit will be made to either the Consultant or customer card

based on the original payment method. Commissions will be adjusted accordingly. If the item designated for future

ship cannot be filled, the Company will cancel the order and adjust commissions accordingly. The Company has the

right to offset such amounts against future commission and other compensation paid or owed to the Consultant who

received commissions for subsequently canceled orders.

RETAIL OUTLETS

We do not allow Consultants to set up a permanent retail display and sell Jamberry products in a retail environment.

They are intended to be sold at a Home Party. A retail outlet includes a kiosk in a mall, boutique, grocery stores, flea

markets, etc.

You may conduct a Home Party at the same retail location (such as a restaurant) once every 3 months, and no more

than 4 times a year.

NON-RETAIL BUSINESSES

Consultants may leave a flyer in non-retail establishments, such as doctors' offices, provided the intent is to attract

participants to a Home Party, not to sell. Restaurants are not retail establishments and you may periodically conduct

Parties or meetings in a restaurant.

MAIL ORDER

Jamberry Consultants may not advertise, promote, sell or sponsor through other company catalogs.

CONSULTANT-TO-CONSULTANT SALES POLICY

Consultants may make Jamberry products available to other Consultants on a cost-recovery basis. For example, when

a Consultant needs an item and does not have time to receive an order from Jamberry Canada, it is acceptable for

one Consultant to sell the Jamberry item to another at the regular purchase price. No adjustments of volume or

commissions will be made by the Home Office. Violation of this policy will result in the termination of your Consultant

Agreement with the Company.

RENTAL SPACE

Consultants may rent space for Home Parties, however, in order to prevent the appearance of such a space as being

a retail establishment, Consultants may not store product in the location. The product must be stored in the

Consultant's home. Permanent signage or telephone rental locations are prohibited.

INTERNATIONAL DISTRIBUTION

Jamberry Nails Consultants may not conduct business outside of Canada. Jamberry Nails Canada does offer

Consultants the opportunity to sponsor consultants in the United States with special approval. If you are interested in

sponsoring consultants in the United States, contact support@jamberrynails.com for more information.

MARKETING MATERIALS CREDIT

Consultants may earn credit that can be used towards the purchase of marketing materials (catalogs, host join

pamphlets, sample cards, postcards, order forms) based on the following monthly retail sales volumes listed below:

Monthly Personal Retail Volume (PRV) Marketing Materials Credit

Under 600 Cdn $0

600 - 699 Cdn $25

700 - 799 Cdn $30

800 - 899 Cdn $35

900 - 999 Cdn $40

1,000+ Cdn $50

Marketing materials credit that is more than six months old on June 30 and December 31 of each year will expire.

Marketing materials credit may only be used on marketing materials and not on any promotional products, retail

products, shipping, or taxes. Marketing materials are "paper products" that have a sku number that starts with M

within the Marketing and Promotional Materials section.

SHIPPING

For Shipping Rates: /uploads/cms/docs/ShippingRates%20.pdf

For Shipping Policies: /uploads/cms/docs/ShippingPolicy.pdf

EVENTS

BEST PRACTICES – OPPORTUNITY EVENTS

The purpose of a Company sponsored opportunity event is for guests to come and have fun while feeling welcome

and comfortable to explore the business and gather more information about becoming a Consultant. It's also a great

event for Consultants to attend along with their guests, or to come alone and learn how to talk to others about our

opportunity. We want the atmosphere to be light and low-pressure, but informative and helpful.

As we grow in popularity, there is a chance that some guests may arrive at our opportunity event who are

"unattached" to an existing Consultant. There is also a chance that a guest was informed of our event by a fellow

Consultant that couldn't be in attendance. To help reduce confusion, we ask every guest to fill out a short

information card upon arrival. This card is then used to figure out where, and with whom, most guests belong.

In the case of an "unattached" guest, here is the procedure that should be followed:

• A list of all Consultants in attendance of the opportunity event will be kept

• "Unattached" guests who end up becoming Consultants as a result of our opportunity event will be

assigned using the Home Office Leads system.

Please remember that this situation is rare and you should not attend an opportunity event in the hopes of

sponsoring someone new (unless you've invited a guest of course!). Please refrain from handing out your personal

business cards to any "unattached" guests in the hopes of sponsoring and instead, answer any questions they may

have in a helpful way. In the end, everyone benefits and if not personally at this event, then perhaps down the road.

BEST PRACTICES – TRAINING EVENTS

The Home Office will not be responsible for lost or stolen inventory in the event that a Consultant brings her own

inventory to a Training event. The Home Office recommends that all inventory be locked up during break periods.

TEMPORARY SALES EVENTS

Public events can be opportunities to receive exposure for your Jamberry business. You can find people interested in

hosting a Home Party, purchasing the product or becoming a Consultant. However, it is important to consider the

cost vs. the return. Consultants may promote their business (offering or arranging sale of Jamberry products and

sponsoring) at exhibits and trade shows, in accordance with the following:

• You must register for the event as a Jamberry Consultant.

• The first Consultant to register for the space with the event sponsor has the right to conduct that event. If

a second Consultant would also like to participate, she must contact the first registrant and obtain her

permission. If two Consultants are registered without prior knowledge, it is up to the second Consultant to

withdraw from the event if the first registered Consultant does not want double participation. When

registering for events, it is a good business practice to check cancellation policies and to proactively check

with the sponsor to ensure another Jamberry Consultant is not already registered.

• The booth must be staffed at all times and must not be shared by another business.

• A temporary event held in the common area of a shopping mall is permissible. (See page 36 or following

page)

Please note that Expos, Trade Shows and Booth Events are not considered a core part of the Jamberry business and

the Home Office does not specifically recommend participation in these events, nor do we endorse any specific event.

Furthermore, as an Independent Consultant, you are responsible for your decision to host or co- host a booth at an

Expo, Trade Show, or Booth Event. The business agreements made between Jamberry Consultants to host or co-host

an event are the proprietary responsibility of the Consultants and the event planners. We strongly advise every

Consultant to evaluate every business decision thoroughly before proceeding with the understanding that the Home

Office is not responsible for the Consultant's participation or subsequent results.

Participation in any one specific Temporary Sales Event shall be limited to two weeks in a calendar year, such as

Farmer's Markets. The goal of Jamberry Canada in establishing this policy for trade shows, expos and craft fairs is to

promote the professional image of Jamberry Canada and all Consultants, and provide an atmosphere of mutual

respect and ethical cooperation. You are encouraged to take creative approaches in your selling. However, your

primary approach should always be a Home Party. Before agreeing to participate in any other type of event, you

should be able to answer "yes" to the following questions:

• Is this event fair to all parties involved?

• Is this legal and ethical?

• Will this generate new bookings or future business?

• Will this approach provide the best environment for a successful event for the Hostess?

If a Temporary Sales Event (such as a craft fair or holiday bazaar) a) is set up inside a retail environment (such as a

shopping center or base exchange); b) occurs more often than every six weeks in its entirety, and/or c) occurs for

twenty-five (25) consecutive days or more, you may set up a display about your independent sales business for the

event but you may NOT have product available for cash and carry sales. An established retail environment is defined

as a location in which permanent retail activities take place, such as inside a shopping center, inside or adjacent to a

base exchange, or inside or adjacent to a permanent swap meet. Shopping center kiosks, base exchanges, or

permanent swap meets are not approved locations for temporary sales forums, because they take place within an

established retail environment.

If you have any questions about whether to participate in an event, please contact Support.

When you register to participate in an event, the event sponsor may ask you for your sales tax registration or inform

you that you must post a copy of your Seller's Permit at your booth. Regarding charging and collection of sales tax,

please refer to "Sales Tax" section for details. If you are required to provide sales tax registration information to the

event organizer, please email support@jamberrynails.com with the name and contact information for the event and

we can provide you our sales tax information and information on how to obtain an insurance rider for the event.

ASSISTANCE FOR HEARING IMPAIRED AT HOME OFFICE EVENTS

While the Home Office holds several events throughout the year, the Company is not required to provide

accommodations for hearing impaired Consultants. Consultants are independent and not company employees, and

therefore should be prepared to make their own accommodations.

GENERAL PROVISIONS

WEBSITE DOWNTIME

You acknowledge that the Jamberry website may be subject to temporary shutdowns from time to time for

maintenance and/or due to causes beyond the operating party's reasonable control, and that neither party shall have

any liability to the other by reason of any such shutdowns.

CONTRACTUAL REMEDIES

Any breach of these Policies & Procedures or the Consultant Agreement, or any illegal, fraudulent, deceptive or

unethical business conduct on your part may result, at our sole discretion, in one or more of the following contractual

remedies:

• Issuance of a written warning or admonition.

• Seeking a liquidated damages amount from you, which may be imposed immediately or withheld from

future commission cheques.

• Reassignment of all or part of your organization.

• Placing you on Account Hold, during which period you may not conduct Jamberry business or receive

compensation.

• Suspension of your Consultant status, which may result in termination, or reinstatement with conditions or

restrictions.

• Termination of Consultant status.

ACTS OF HOUSEHOLD MEMBERS

The violation of a provision of the Jamberry Consultant Agreement or these Policies & Procedures by any member of

your immediate household will be imputed to you and will subject you to appropriate action by Jamberry Canada,

including possible termination of your status as a Consultant.

GRIEVANCES AND COMPLAINTS

If you have a grievance or complaint about another Consultant that you are unable to resolve regarding any practice

or conduct related to the Jamberry business, please submit a support ticket describing the situation to Jamberry

Canada Consultant Support for review to support@jamberrynails.com.

REPORTING POLICY VIOLATIONS

If you observe a violation of the Policies & Procedures by another Jamberry Consultant, please submit a report

(electronic or written) to Jamberry Consultant Support (support@jamberrynails.com) describing the circumstances,

evidence and any other pertinent information. Your report to the Company will be held in the strictest confidence.

AMENDMENTS

The Company reserves the right to amend 1) Consultant Agreement, 2) the Compensation Plan, 3) the Policies &

Procedures, 4) its prices, 5) product and service availability at any time without prior notice as it deems appropriate.

Amendments will be communicated to Consultants through official Company publications, websites, or voice or e-

mail. Amendments are effective and binding on all Consultants as of the date of issuance. In the event of any conflict

between the original documents and policies and any such amendment, the amendment will control.

INDEMNIFICATION/OFFSET

As a Consultant, you indemnify and hold harmless Jamberry Canada and its owners, employees, agents and assigns

from and against any damages, claims or liabilities and expenses (including attorneys' fees) incident to your: (a)

activities as a Consultant including, without limitation, any unauthorized representations made by you; (b) breach of

the terms of the Consultant Agreement; or (c) violation of or failure to comply with any applicable federal, provincial

or municipal laws or regulations. Jamberry Canada shall have the right to offset any amounts owed by you to

Jamberry Canada (including, without limitation, the repayment of commissions as a result of product returns) against

the amount of any commissions or bonuses owed to you.

TELEPHONE SOLICITATION

Consultants may not use or transmit unsolicited faxes, make unsolicited telephone calls, or use an automatic

telephone dialing system relative to the operation of their Jamberry businesses and agree to inform themselves of

the laws applicable to telemarketing. The terms "unsolicited faxes" and "unsolicited telephone calls" means faxes and

telephone calls, respectively, made for the purpose of solicitation to a recipient who has not consented to the fax or

telephone call. The term "automatic telephone dialing system" means equipment which has the capacity to: (a) store

or produce telephone numbers to be called, using a random or sequential number generator; and (b) to dial such

numbers.

Consultants are not authorized to make unsolicited telephone calls or send unsolicited faxes on Jamberry Canada's

behalf. If a Consultant decides to make such calls to persons with whom he/she has an Existing Business

Relationship (defined to arise where (1) a product or service has been purchased by the person from the Consultant

within the previous 18 months, (2) an inquiry or application has been made by the person of the Consultant within

the previous 6 months, or (3) there is a written contract currently in effect between the person and the Consultant or

that has expired within the previous 18 months), they do so on their own behalf and are required to undertake that

they will comply with all applicable rules and laws, including: (1) privacy laws, (2) registration with the National Do

Not Call List program under the Telecommunications Act rules, (3) maintaining a Do Not Call List so that consumers

may request not to be called, and (4) disclosing the following information at the beginning of the call: purpose of the

call, a toll-free telephone number for questions or comments about the call, the nature of the product or business

interest being promoted, and the identity of the person or organization on whose behalf the call is made, the price of

any product being promoted and any material restrictions, terms or conditions applicable to its delivery. Consultants

are not permitted to make or send any other unsolicited telephone calls or unsolicited faxes.

CUMULATIVE REMEDIES/WAIVER

All rights, powers and remedies given to Jamberry Canada are cumulative, not exclusive and in addition to any and

all other rights and remedies provided by law. No failure or delay of Jamberry Canada to exercise any power or right

under this Agreement or to insist upon strict compliance by you with any obligation or provision shall constitute a

waiver of Jamberry Canada's right to demand exact compliance therewith. Waiver by Jamberry Canada can be

effective only in writing by an authorized officer of Jamberry Canada.

INJUNCTIVE RELIEF

Upon any breach of the Consultant Agreement by the Consultant, Jamberry Canada will be immediately and

irreparably harmed and cannot be made whole solely by monetary damages. Because the remedy at law for any

breach of any provision of the Consultant Agreement shall be inadequate, in addition to any other remedies in law or

in equity that it may have, Jamberry Canada shall be entitled, without the necessity of proving actual damages, to

temporary and permanent injunctive relief to prevent the breach of any provision of this Agreement and/or to compel

specific performance of this Consultant Agreement. In addition, Jamberry Canada shall be entitled to its costs and

expenses, including reasonable attorneys' fees, in enforcing its rights under the Consultant Agreement.

WAIVER

Jamberry Canada maintains its right to insist on compliance with these Policies & Procedures or with the applicable

laws governing the conduct of a business. In the event that we permit a variance of the rules, that permission does

not extend to future variances. This provision deals with the concept of "waiver," and the parties agree that we do

not waive any of our rights under any circumstances.

JURISDICTION

All disputes and claims relating to Jamberry, the Consultant Agreement, the Compensation Plan, the Company's

products, the rights and obligations of the Consultant, or any other claims or cause use of action relating to the

performance of either the Consultant or Jamberry Canada under the agreement shall be adjudicated totally and

finally in the Province of Ontario or such other location as the Company prescribes. Unless the province in which you

live requires the application of its laws and venue, this agreement is governed by the laws of the Province of Ontario,

without regard to principles of conflicts of laws.

PARTIAL VALIDITY

Should any portion of the Consultant Policies & Procedures, the Consultant Agreement or of any other instruments

referred to herein or issued by Jamberry Canada be declared invalid by a court of competent jurisdiction, the balance

of such rules, applications or instruments shall remain in full force and effect.

LIMITATION OF DAMAGES

To the extent permitted by law, Jamberry Canada and its affiliates, officers, directors, associates and other

representatives shall not be liable for, and the Consultant hereby releases the foregoing from, and waives any claim

of loss of profit, incidental special, consequential, or exemplary damages which may arise out of any claim

whatsoever relating to the Company's performance, non-performance, act, or omission with respect to the business

relationship or other matters between the Consultant and the Company whether sounding in contract, tort or strict

liability. Furthermore, it is agreed that any damage to the Consultant shall not exceed, and is hereby expressly

limited to the amount of unsold Jamberry products and services owned or held by the Consultant and commissions,

bonuses and overrides.

PRIVACY POLICY & CONSENT

You understand and agree that certain personal information relating to you and your business will be collected, used

and retained by the Company in accordance with the Company's Privacy Policy, as amended from time to time and

otherwise in accordance with state and Canadian federal and provincial privacy laws, and you hereby consent to

same. The Company reserves the right to amend or revise the terms of its Privacy Policy without express notice to

you, and you consent to any amendments reasonably made. In operating your independent business, you also agree

to adopt, implement and disseminate a privacy policy that complies with all state and Canadian federal and provincial

privacy laws that your business may be subject to, for which you are solely responsible, and such compliance shall be

undertaken at your sole expense. You acknowledge that failure to comply with these terms may result in immediate

termination of your Consultant Agreement. Without limiting your sole responsibility to comply with state and federal

and provincial privacy laws affecting your business, the Company hereby grants you, at no additional charge, for the

term of your Consultant Agreement, the right to copy and use in your business the Company Privacy Policy and

related privacy policy consents.

ENTIRE AGREEMENT

These Policies & Procedures and the Compensation Plan, as each may be amended from time to time, are

incorporated into the Jamberry Consultant Agreement and constitute the entire Agreement of the parties regarding

their business relationship.

COMPANY ADDRESS AND CONTACT INFORMATION

Jamberry Nails Canada Limited Partnership

Address for Legal Service:

1100 One Bentall Centre

505 Burrard Street, Box 11,

Vancouver, British Columbia V7X 1M5

Canada

Address for Consultant Services:

c/o 751 East Quality Drive

American Fork, UT 84003

USA

Email: Support@jamberrynails.com

Tel: 801.796.2205

Toll free: 1-855-416-0221