Policies and Procedures

POLICIES AND PROCEDURES v1.0

1.0 INTRODUCTION

1.1 Mutual Commitment Statement

The goal of Kole Jax Designs, LLC (hereafter as "We," "Us," "Our," or simply the "Company") is to provide exceptional products and services to consumers. This is only made possible with the support of and passion demonstrated by the members of the Kole Jax sales organization (known as 'stylists"). To achieve sustained success as a business, Kole Jax hereby commits to aid and support all Stylists in return for the mutual commitment made and shown by these Stylists to represent the Company in its efforts to reach all interested consumers.

1.2 Purpose of Policies and Effective Date

To clearly define the relationship that exists between Us and you, and to explicitly set a standard for acceptable business conduct, We now put forth these Policies and Procedures.
As a Stylist, you are required to comply with:

All of the terms and conditions set forth in the Stylist Agreement, which We may amend from time to time in Our sole and absolute discretion;
All federal, state, and/or local laws governing your Kole Jax business; and
Lastly, these Policies and Procedures.

A Stylist must review the information in these Policies and Procedures carefully. Should you have any questions regarding a policy or rule, We encourage you to seek an answer from your Sponsor (as defined in the Glossary of Terms herein). Should your Sponsor not provide the appropriate clarification, you may contact the Company Customer Service Department.
These Policies and Procedures shall become effective as of September 12, 2018 ("Effective Date").

1.3 These Policies and Procedures and the Compensation Plan Incorporated into the Stylist Agreement

Throughout these Policies, when the term "Agreement" is used, this collectively refers to the Stylist Agreement, these Policies and Procedures, and the Company Compensation Plan.
It is the responsibility of a Sponsoring Stylist to provide the most current version of these Policies and Procedures (available on the company website) and the Company Compensation Plan to each applicant prior to any execution of a Stylist Agreement.

1.4 Changes, Amendments, and Modifications

Because federal, state, and local laws, as well as the business environment, periodically change, We reserve the right to amend the Agreement from time to time. Additionally, the Company may change and amend the prices on all its product at any time in the future. Please note, this provision does NOT apply to the arbitration clause found in Section 12, which can only be modified via mutual consent.
Any such amendment, change, or modification shall be effective immediately upon notice by one of the following methods:

Posting on the official Corporate website;
Electronic mail (e-mail); or
In writing through Company newsletters or corporate communication channels.

Understand that any continued business, ordering, acceptance of a commission or bonus payout, or other benefit received by a Stylist pursuant to this Agreement constitutes the acceptance of this Agreement in whole with any and all amendments.

1.5 Delays

Kole Jax shall not be responsible for delays or failures in performance of its obligations when such failure is due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, transportation difficulties, riot, war, fire, and/or weather, curtailment of a source of supply, or government decrees or orders.

2.0 BASIC PRINCIPLES

2.1 Becoming a Stylist

As a Kole Jax Stylist, you will be a part of a team of passionate, driven, like-minded individuals, all working towards the common goal of achieving emotional, personal and financial success. To become a Stylist, you must comply with the following requirements:

Be of the age of majority (not a minor) in your state of residence;
Reside or have a valid address in the United States or other U.S. territory;
Have a valid taxpayer identification number (i.e. Social Security Number, Federal Tax ID Number, ITIN, etc.);
Submit a properly completed and signed (via hard copy or electronic signature) Stylist Agreement;
Not be a Kole Jax employee, or the spouse or relative of a Company employee living in the same household;

2.2 Registration and Enrollment of a Stylist

You can submit your Stylist Agreement through mail or the Kole Jax website (https://www.kolejax.com/). The application must be received within ten (10) business days of your enrollment for you to receive Stylist benefits. If the Stylist Agreement is not received within ten (10) business days, your Stylist account will remain on temporary hold until We receive the Agreement.
A potential new Stylist may also enroll on the Sponsor's replicated website. Instead of a physically signed Stylist Agreement, We will accept the web-enrollment through the "electronic signature." The electronic signature signifies that the new Stylist has accepted the terms and conditions of the Stylist Agreement, the Policies and Procedures, the Terms of Use, and the Compensation Plan. Please note that such electronic signature constitutes a legally binding agreement between you and the Company.
Kole Jax reserves the right to require signed paperwork for any account, regardless of origin.
Signed documents, including, but not limited to Stylist agreements, are legally binding contracts which must not be altered, tampered with or changed in any manner after execution. False or misleading information, forged signatures or alterations to any document, including business registration forms, made after a document has been executed may lead to sanctions, up to and including involuntary termination of the Stylist's business.
Enrollment fee/Starter (Sparkle) Kit costs are non-refundable, non-transferable and non-exchangeable.
If you have been issued your product credit from a starter kit and you have purchased items, those items are eligible for exchange only. Any personalized items are considered non-refundable and non-exchangeable.
A Stylist may purchase up to 2 kits within 12 months of original kit purchase.

2.3 Rights Granted

Kole Jax hereby grants to the Stylist a non-exclusive right, based upon the terms and conditions contained in the Stylist Agreement and these Policies and Procedures, to the following:

The ability to purchase, sell and promote Kole Jax products and services;
Sponsor new Customers and Stylists in the United States, building a sales organization and earning commissions of the personal and downline sales of Kole Jax products.

2.4 Identification Numbers

Each Stylist is required to provide his or her Social Security Number, or Federal Tax Identification Number, if located in the United States or any of its territories, to the Company on the Stylist Agreement. We reserve the right to withhold commission payments from any Stylist who fails to provide such information or who provides false information.
Upon enrollment, We will provide you a Kole Jax Identification Number. This number will be used to place orders, structure organizations, and track commissions and bonuses.

2.5 Business Entities

A corporation, partnership, LLC, or trust (collectively referred to as a "Business Entity") may apply to be a Stylist. This Stylist business and position will remain temporary until the submission of proper documents. As examples of proper documents, We expect a Business Entity application to come with some of the following: Certificate of Incorporation, Articles of Organization, Partnership Agreement or appropriate Trust documents. We must receive these documents within ten (10) business days from the date of the Stylist Agreement's execution.
A Stylist may change his or her status under the same Sponsor from an individual to a Business Entity so long as he or she complies with Section 2.5(A).

2.6 Independent Business Relationship; Indemnification for Actions

As a Stylist, you are an independent contractor, and not a purchaser of a franchise or business opportunity. As a result, each Stylist's success depends entirely upon his, her or its own independent efforts.
The Agreement between you and Us does not create an employer/employee relationship, agency, partnership, or joint venture.
A Stylist shall not be treated as an employee of Kole Jax for any purposes, including, without limitation, for federal or state tax purposes. You are responsible for paying local, state, and federal taxes due from all compensation earned as a Stylist. Any other compensation received by Stylists from the Company will be governed by applicable U.S. tax laws (or the tax laws of any other applicable jurisdiction). You as a Stylist have no express or implied authority to bind Kole Jax to any obligation or to make any commitments by or on behalf of the Company. Each Stylist, whether acting as management of a Business Entity or represented as an individual, shall establish goals, hours, and methods of operation and sale, so long as in compliance with the terms of the Stylist Agreement, these Policies and Procedures and applicable state and federal laws.
You are fully responsible for all of your verbal and written communications made regarding Kole Jax products, services, and the Compensation Plan that are not expressly contained within official Company materials. Stylist shall indemnify and hold harmless Kole Jax, its directors, officers, employees, product suppliers and agents from any and against all liability including judgments, civil penalties, refunds, attorney fees and court costs incurred by the Company as a result of the Stylist's unauthorized representations or actions. This provision shall survive the termination of the Stylist Agreement.

2.7 Errors or Questions

If a Stylist has questions about, or believes any errors have been made regarding commissions, bonuses, business reports, orders, or charges, the Company requires any inquiries by email (to support@kolejax.com) within thirty (30) days of the date of the error or incident in question. Any such errors, omissions or problems not reported within this thirty-day timeframe days is expressly waived by Stylist.

3.0 RESPONSIBILITIES OF A STYLIST

3.1 Correct Addresses

It is the responsibility of any Customer or Stylist to ensure the Company has the correct shipping address before the shipment of any orders.
For any notice of address change sent to the Company, a Customer or Stylist will need to allow up to thirty (30) days for processing.

3.2 Training and Leadership

Any Stylist who sponsors another Stylist into Kole Jax must perform an authentic assistance and training function to ensure those made up of their downline organizations operate their business in accordance with these Policies and Procedures. Sponsoring Stylists should have ongoing contact and communication with those in their downline organizations. Examples of communication may include, but are not limited to, newsletters, written correspondence, telephone, contact, team calls, voice-mail, e-mail, personal meetings, accompaniment of downline Stylists to Company meetings, training sessions and any other related functions.
A Sponsoring Stylist should monitor the Stylists in his or her downline organizations to ensure that downline Stylists do not make improper product or business claims, or engage in any illegal or inappropriate conduct. Upon request, a Stylist should be able to provide documented evidence to the Company of his or her ongoing fulfillment of Sponsor responsibilities.
Upline Stylists are encouraged to motivate and train new Stylists about Company products and services, effective sales techniques, the Company Compensation Plan and compliance with these Policies and Procedures.
The marketing and sale of products is a required activity in Kole Jax and must be emphasized in all recruiting presentations.
We prioritize all Stylists to sell Kole Jax's products and services to Customers first and prospective and current Stylists second.
Use of Sales Aids. Creation of Kole Jax sales tools is limited to Kole Jax Stylist only. These Stylists must submit all written sales aids, promotional materials, advertisements, websites and other literature to the Company for approval prior to use. Unless the Stylist receives specific written approval to use the material, the request shall be deemed denied. All Stylists shall safeguard and promote the good reputation of Kole Jax and its products. Once approved, Company reserves the right to incorporate the approved training material in its own promotional efforts.

3.3 Constructive Criticism; Ethics

It is Our goal to provide you with a combination of exceptional products and a rewarding Compensation Plan. Accordingly, We value constructive criticism and encourage the submission of written comments addressed to the Company's Compliance Department so long as such comments come by way of a respectful and in a productive manner.
Negative and disparaging comments by Stylists made to others about the Company, its products or Compensation Plan, or disruptive behavior at Company meetings or events, serve no purpose other than to dampen the enthusiasm of all those who participate in the Kole Jax business. Stylists must not belittle the Company, other Stylists, the Company products or services, the Compensation Plan, or Company directors, officers, or employees, product suppliers or agents. Such conduct represents a material breach of these Policies and Procedures and may be subject to sanctions as the Company sees fit.
Kole Jax endorses the following Code of Ethics:

Stylists must show fairness, tolerance, and respect to all people associated with Kole Jax, regardless of race, gender, social class or religion;
Stylists must contribute to and foster an atmosphere of positivity, teamwork, good morale and community spirit.
Stylists shall strive to resolve business issues, including situations with upline and downline Stylists, by emphasizing tact, sensitivity, good will and taking care not to create additional problems.
Stylists must be honest, responsible, professional and conduct themselves with integrity.
Stylists shall never disparage the Company, other Stylists, Company employees, product suppliers or agents, products, services, sales and marketing campaigns, or the Compensation Plan, or make statements that unreasonably offend, mislead or coerce others.

Kole Jax may take appropriate action against a Stylist if it determines, in its sole discretion, that the Stylist's conduct is detrimental, disruptive, or injurious to the Company or other Stylists.

3.4 Reporting Policy Violation

A Stylist who observes a policy violation by another Stylist should submit a written and signed letter (e-mail will not be accepted) of the violation directly to the Company Compliance Department. The letter shall set forth the details of the incident as follows:

The nature of the violation and specific facts to support the allegation;
Number of occurrences and dates;
The persons involved; and
Any other supporting documentation

Upon presentation to the Company Compliance Department, We will research the incident in question and take appropriate action if necessary.
This section refers to the general reporting of policy violations as observed by other Stylists for the mutual effort to support, protect, and defend the integrity of the Kole Jax business and opportunity. If a Stylist has a grievance or complaint against another Stylist which directly relates to his or her Kole Jax business, the procedures set forth in these Policies must be followed.

3.5 Sponsorship

The Sponsor is the person who introduces a person, whether a Customer or a Stylist, to the Kole Jax business and helps them complete their enrollment, supports those in their downline, and continues to provide training and assistance for all those in their downline.
Kole Jax recognizes the Sponsor as the name(s) shown on the first:

Physically signed Stylist Agreement on file; or
Electronically signed Stylist Agreement from either the Company's website or a Stylist's replicated website.

A Stylist Agreement that contains notations such as "by phone" or the signatures of other individuals (i.e. Sponsors, spouses, relatives, or friends) is not valid and will not be accepted by the Company.
We recognize that each new prospect has the right to ultimately choose his or her own Sponsor, but We will not allow Stylists to engage in unethical sponsoring activities.
All active Stylists in good standing have the right to Sponsor and enroll others into the Kole Jax business. While engaged in sponsoring activities, it is not uncommon to encounter situations when more than one Stylist will approach the same prospect. It is the accepted courtesy that the new prospect will be sponsored by the first Stylist who presented a comprehensive introduction to the Company's products or opportunity.

3.6 Cross Sponsoring Prohibition

"Cross sponsoring" is defined as the enrollment of an individual or Business entity into a different line of sponsorship who has already signed a Stylist Agreement. Actual or attempted cross sponsoring is not allowed. If cross sponsoring is verified by the Company, sanctions up to and including termination of a Stylist's business may be imposed.
The use of a spouse's or relative's name, trade names, assumed names, DBA names, corporation, partnership, trust, Federal ID numbers, or fictitious ID numbers to evade or circumvent this policy is strictly prohibited.
This policy does not prohibit the transfer of a Kole Jax business in accordance with the Sale or Transfer policy set forth herein.

3.7 Adherence to the Kole Jax Compensation Plan

A Stylist must adhere to the terms of the Company Compensation Plan. Any deviation from the Compensation Plan is strictly prohibited.
A Stylist shall not offer the Kole Jax opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically set forth in official Company materials.
A Stylist shall not require or encourage a current or prospective Customer or Stylist to participate in the Kole Jax business in any manner that varies from the Compensation Plan or other Company materials.
Other than such purchases or payments required to naturally build their business, a Stylist shall not require or encourage a current or prospective Customer or Stylist to make a purchase from or payment to any individual or other entity as a condition to participating in the Company Compensation Plan.

3.8 Adherence to Laws and Ordinances

Many cities and counties have laws regulating certain home-based businesses. In most cases, these ordinances do not apply to Stylists because of the nature of the business. However, Stylists must check their local laws and obey the laws that do apply to them. A Stylist shall comply with all federal, state and local laws and regulations in their independent conducting of his, her or its Kole Jax business.

3.9 Compliance with Applicable Income Tax Laws

Kole Jax will automatically provide a complete 1099 Miscellaneous Income Tax form (nonemployee compensation) to each United States Stylist whose earnings for the year is at least $600 or who has purchased more than $5,000 of Kole Jax products for resale, or who received trips, prizes or awards valued at $600 or more. If earnings and purchases are less than stated above, IRS forms will be sent only at the request of the Stylist, and a minimum charge of $20 may be assessed by the Company.
A Stylist accepts sole responsibility for and agrees to pay all federal, state and local taxes on any income generated as an independent business owner, and further agrees to indemnify Kole Jax from any failure to pay such tax amounts when due.
If a Stylist's business is tax exempt, the Federal Tax Identification number must be provided to the Company in writing.
D. Kole Jax encourages all Stylists to consult with a tax advisor for additional information for their business.

3.10 One Kole Jax Business Per Household

Members of Stylist's household may operate together as one Stylist position, but may not become separate Stylists. Household is defined as husband, wife, and dependents. Note: Children of legal age to contract and at least 18 years of age are not considered a part of their parents" household.

3.11 Actions of Household Members or Affiliated Parties

If any member of your immediate household engages in any activity which, if performed by you, would violate any provision of the Agreement, such activity will be deemed a violation by you. As a result, the Company may take disciplinary action pursuant to these Policies and Procedures against you. Similarly, if any individual associated in any way with a corporation, partnership, LLC, trust or other entity (collectively "Business Entity") violates the Agreement, such action(s) will be deemed a violation by the Business Entity, and the Company may take disciplinary action against the Business Entity. Likewise, if a Stylist enrolls in Kole Jax as a Business Entity, each affiliated party of the Business Entity shall be personally and individually bound to, and must comply with, the terms and conditions of the Agreement.

3.12 Solicitation for Other Companies or Products

A Stylist may participate in other direct sales, multilevel, network marketing or relationship marketing business ventures or marketing opportunities (collectively "Network Marketing"). However, during the Term of this Agreement and for one (1) year thereafter, you may not recruit any other Kole Jax Customer or Stylist for any other Network Marketing business, unless said Customer or Stylist was personally sponsored by you.
The term "recruit" means actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way (either directly or through a third party), another Customer or Stylist to enroll or participate in any Network Marketing opportunity. This conduct represents recruiting even if the Stylist's actions are in response to an inquiry made by another Customer or Stylist.
However, you may sell non-competing products or services to Kole Jax Customers and Stylists. Specifically, a non-competing company is defined as a company that does NOT sell customizable jewelry. We will take competing companies that sell all other jewelry into consideration on a case by case basis.
A Stylist may not display or bundle Kole Jax products or services, in sales literature, on a website or in sales meetings, with any other products or services to avoid confusing or misleading a prospective Customer or Stylist into believing there is a relationship between Kole Jax and the non-Company related products or services.
You may not offer any non-Company related opportunity, products or services at any Kole Jax-related meeting, seminar or convention, or immediately following said event(s).
A violation of any of the provisions in this section shall constitute unreasonable and unwarranted contractual interference between Kole Jax and you. As a result, such actions would inflict irreparable harm on the Company. In such event, Kole Jax may, at its sole discretion, impose any sanction it deems necessary and appropriate against the Stylist or Stylist's business including termination, the request for immediate injunctive relief, or the pursuit of any other legal and equitable remedies.

3.13 Presentation of the Kole Jax Opportunity

In presenting the Company opportunity to potential Customers and Stylists, you must comply with the following provisions:

Abstain from a misquote or omission of any significant material fact about the Compensation Plan.
Make clear that the Compensation Plan is based upon sales of Kole Jax products and services to consumers.
Make clear that success can be achieved only through substantial independent efforts and hard work.
Abstain from unauthorized income projections, claims, or guarantees during any presentation or discussion the Kole Jax opportunity or Compensation Plan to prospective Customers or Stylists.
Abstain from any claims regarding Company products or services not found in official Company materials.
Refrain from the promotion of Kole Jax in any country where We have not yet established a "presence."

Note: The terms "income claim" and/or "earnings representation" (collectively "income claim") include the following: (1) statements of average earnings, (2) statements of non-average earnings, (3) statements of earnings ranges, (4) income testimonials, (5) lifestyle claims, and (6) hypothetical claims. Examples of 'statements of non-average earnings" include, "Our number one Stylist earned over three hundred thousand dollars last year" or "Our average-ranking Stylist earns two thousand per month." An example of a 'statement of earnings ranges" is "The monthly income for our higher-ranking Stylists is three thousand dollars on the low end to thirty thousand dollars a month on the high end."

3.14 Sales Requirements are Governed by the Compensation Plan

For all Kole Jax products, the Company provides a set sales price. There are no exclusive territories granted to anyone. No franchise fees are applicable to a Kole Jax business.
The Kole Jax program is built on sales to the ultimate consumer. Thus, Stylists must only purchase inventory that they and their family will personally consume, will be used as a sales tool, or will be resold to others for ultimate use. Stylists must never attempt to influence any other Stylist to buy more products than they can reasonably use or sell to Customers in a month.

4.0 ORDERING

4.1 General Order Policies

"Bonus Buying" is strictly and absolutely prohibited. Bonus Buying includes any of the following scenarios: (i) the enrollment of individuals or entities without the knowledge of and/or execution of an Agreement by such individuals or Business Entities; (ii) the fraudulent enrollment of an individual or entity as a Customer or Stylist; (iii) the enrollment or attempted enrollment of non-existent individuals or Business Entities as Customers or Stylists ("phantoms"); (iv) purchasing Kole Jax products or services on behalf of another Customer or Stylist, or under another Customer's or Stylist's ID number, to qualify for commissions or bonuses; (v) purchasing excessive amounts of products or services that cannot reasonably be used or resold in a month; and/or (vi) any other mechanism or artifice to qualify for rank advancement, incentives, prizes, commissions, or bonuses that is not driven by bona fide product or service purchases by end user consumers.
A Stylist shall not use another Customer's or Stylist's credit card or debit checking account to enroll in Kole Jax or purchase products or services without the account holder's written permission. Such documentation must be kept by the Stylist indefinitely in case we need to reference this.
Regarding an order with an invalid or incorrect payment, We will attempt to contact the Stylist by phone, mail or e-mail in order to obtain another form of payment. If these attempts are unsuccessful after ten (10) business days, the order will be canceled.
Prices are subject to change without notice.
A Customer or Stylist who is a recipient of a damaged or incorrect order must notify the Company within seven (7) calendar days from receipt of the order and follow the procedures as set forth in these Policies.

4.2 Insufficient Funds

All checks returned for insufficient funds will be re-submitted for payment. A $35 fee will be charged to the account of the Customer or Stylist for all returned checks and insufficient funds.
Any outstanding balance owed to Us by a Customer or Stylist of yours from NSF (non-sufficient funds) checks, returned check fees or insufficient fund fees (ACH) will be withheld from your future bonus and commission checks.
All transactions involving returned checks or insufficient funds through ACH or credit card, which are not resolved in a timely manner by the Stylist, constitute grounds for disciplinary sanctions.
If a credit card order or automatic debit is declined the first time, the Customer or Stylist will be contacted for an alternate form of payment. If payment is declined a second time, the Customer or Stylist may be deemed ineligible to purchase Company products or services in the future.

4.3 Sales Tax Obligation

You as a Stylist shall comply with all state and local taxes and regulations governing the sale of Our products and services.
We will collect and remit sales tax on Stylist orders unless a Stylist furnishes Us with the appropriate Resale Tax Certificate form. When orders are placed with Us, sales tax is prepaid based upon the suggested retail price. We will remit the sales tax to the appropriate state and local jurisdictions. The Stylist may recover the sales tax when a sale is made.
We as a company encourage each Stylist to consult with a tax advisor for additional information for his or her business.

5.0 PAYMENT OF COMMISSIONS & BONUSES

5.1 Bonus and Commission Qualifications

A Stylist must be active (as defined in the Glossary of Terms) and in compliance with these Policies and Procedures to qualify for bonuses and commissions. So long as a Stylist complies with the terms of the Agreement, We shall pay commissions to such Stylist in accordance with the Compensation Plan.
We will not issue a payment to a Stylist without the receipt of a completed and signed Stylist Agreement via hard copy or through Electronic Authorization.
Kole Jax reserves the right to postpone bonus and commission payments until such time the cumulative amount exceeds $1,000.00 USD.

5.2 Computation of Commissions and Discrepancies

A Stylist must review his or her monthly statement and bonus/commission reports promptly and report any discrepancies within thirty (30) days of receipt. After this thirty-day "grace period," no additional requests will be considered for commission recalculations.
For additional information on payment of commissions, please review the Compensation Plan.

5.3 Adjustments to Bonuses and Commissions for Returned Products

A Stylist receives bonuses and commissions based on the actual sales of products and services to end consumers. When a product or service is returned to the Company for a refund from the end consumer, the bonuses and commissions attributable to the returned product or service will be deducted from the Stylist who received bonuses or commissions on said sales. Deductions will occur in the month in which the refund is given and continue every pay period thereafter until the bonus/and or commission is recovered.
In the event that a Stylist terminates his or her business, and the amounts of the bonuses or commissions attributable to the returned products or services have not yet been fully recovered by the Company, the remainder of the outstanding balance may be offset against any other amounts that may be owed by the Company to the terminated Stylist.

6.0 RETURN, EXCHANGE AND REPLACEMENT FOR PRODUCTS AND SALES AIDS

Please note that Kole Jax does not offer refunds for personalized product. Due to the unique nature of the personalization process, sales are final at the time of purchase. A Customer or Stylist may only return personalized product in the event of a defect or error. The return of defective products shall result in replacement product(s) of equal value.

As for non-personalized items, the Company offers a refund period of thirty (30) days by which a Customer or Stylist may return product for a 100% refund or exchange for different product. For exchanges and returns customer and stylists are responsible for return shipping unless item arrived damaged.

Please contact us at support@kolejax.com for help on the return/exchange process

Being that our designs are affordable and considered costume jewelry, we do not warranty the jewelry.

Orders can only be cancelled within two (2) days of order date. Once this two (2) day window closes, Kole Jax will not cancel any orders as the production process has begun.

Upon cancellation of the Agreement, the Stylist may return all generic sales aids provided by Kole Jax purchased after enrollment within one (1) year from the date of cancellation for a refund if he or she is unable to sell or use the merchandise. A Stylist may only return sales aids personally purchased from the Company under his or her Stylist Identification Number, and which are in Resalable Condition. Any custom orders of printed sales aids (i.e., business cards, brochures, etc.) where on the Stylist's contact information is imbedded or hard printed, or has been added by the Stylist, are not able to be returned in Resalable Condition and are thus nonrefundable. Upon Kole Jax's receipt of the products and sales aids, the Stylist will be reimbursed ninety percent (90%) of the net cost of the original purchase price(s), less shipping and handling charges. If the purchases were made through a credit card, the refund will be credited back to the same credit card account. The Company shall deduct from the reimbursement paid to the Stylist any commissions, bonuses, rebates or other incentives received by the Stylist which were associated with the merchandise that is returned.

6.1 Return Process

All returns, whether by a Customer or Stylist, must be made as follows:

Obtain Return Merchandise Authorization ("RMA") from the Company;
Ship items to the address provided by the Company Customer Service Department when you are given your RMA;
Provide a copy of the invoice with the returned products or service. Such invoice must reference the RMA and include the reason for the return; and
Ship back product in the exact same manner as it was delivered, meaning the packaging should be the exact same.

All returns must be shipped to the Company pre-paid, as We do not accept shipping collect packages. We recommend shipping returned product by USPS, UPS, or FedEx with tracking and insurance as risk of loss or damage in shipping of the returned product shall be borne solely by the Customer or Stylist. If returned product is not received at the Company Headquarters, it is the responsibility of the Customer or Stylist to trace the shipment and no credit will be applied.
If a product is received in damaged or defective condition, the Company will cover all shipping charges by providing a shipping label. Proof of the defective product must be submitted via photograph to our customer support staff.
The return of $300 or more of products accompanied by a request for a refund and/or replacement within a single calendar year by a Stylist may constitute grounds for involuntary termination.

7.0 PRIVACY POLICY

7.1 Introduction

This Privacy Policy is to ensure that all Customers and Stylists understand and adhere to the basic principles of confidentiality.

7.2 Expectation of Privacy

Kole Jax recognizes and respects the importance its Customers and Stylists place on the privacy of their financial and personal information. Thus, We will make reasonable efforts to safeguard the privacy of and maintain the confidentiality of its Customers" and Stylists" financial and account information and nonpublic personal information.
By entering into the Stylist Agreement, you authorize Kole Jax to disclose your name and contact information to upline Stylists solely for activities related to the furtherance of the Kole Jax business. A Stylist hereby agrees to maintain the confidentiality and security of such information and to use it solely for the purpose of supporting and servicing the downline organization and conducting Kole Jax business.

7.3 Employee Access to Information

We limit the number of employees who have access to Customers" and Stylists" nonpublic personal information.

7.4 Restrictions on the Disclosure of Account Information

Kole Jax will not share non-public personal information or financial information about current or former Customers or Stylists with third parties, except as permitted or required by laws and regulations, court orders, or to serve the Customers" or Stylists" interests or to enforce its rights or obligations under these Policies and Procedures, the Stylist Agreement, or with written permission from the accountholder on file.

8.0 PROPRIETARY INFORMATION AND TRADE SECRETS

8.1 Business Reports, Lists, and Proprietary Information

By completing and signing the Stylist Agreement, you acknowledge that Business Reports, lists of Customer and Stylist names and contact information, and any other information, which contain financial, scientific or other information both written or otherwise circulated by the Company pertaining to the business of Kole Jax (collectively, "Reports"), are confidential and proprietary information and trade secrets belonging to the Company.

8.2 Obligation of Confidentiality

During the Term of the Stylist Agreement and for a period of five (5) years after the termination or expiration of the Stylist Agreement between you and Us, you shall not:

Use the information in the Reports to compete with Kole Jax or for any purpose other than promoting your business;
Use or disclose to any person or entity any confidential information contained in the Reports, including the replication of the genealogy in another network marketing company.

8.3 Breach and Remedies

The Stylist acknowledges that such proprietary information is of such character as to render it unique and that disclosure or use thereof in violation of this provision will result in irreparable damage to Kole Jax and to independent Kole Jax businesses. The Company and its Stylists will be entitled to injunctive relief or to recover damages against any Stylist who violates this provision in any action to enforce its rights under this section. The prevailing party shall be entitled to an award of attorney's fees, court costs and expenses.

8.4 Return of Materials

Upon demand by the Company, any current or former Stylist will return the original and all copies of all "Reports" to the Corporate office together with any other Company confidential information in such person's possession.

9.0 ADVERTISING, PROMOTIONAL MATERIAL, USE OF COMPANY NAMES AND TRADEMARKS

9.1 Labeling, Packaging, and Displaying Products

A Stylist may not re-label, re-package, refill, or alter labels of any Kole Jax product or service information, materials or program(s) in any way. Such re-labeling or re-packaging violates federal and state laws, which may result in criminal or civil penalties or liability.
A Stylist shall not cause any Company product or service or any Company trade name to be sold or displayed in retail establishments, including but not limited to kiosks in malls, during normal business hours.
A Stylist may sell Company products and services and display the Company trade name at any appropriate display booth (such as trade shows) upon prior written approval from Kole Jax. The request for Company approval may be made by way of email: support@kolejax.com.
We reserve the right to refuse authorization to participate at any function that it does not deem a suitable forum for the promotion of its products and services.

9.2 Use of Company Names and Protected Materials

A Stylist must safeguard and promote the good reputation of the Company and the products and services it markets. The marketing and promotion of the Company, the Kole Jax opportunity, the Compensation Plan, and its products and services will be consistent with the public interest, and must avoid all discourteous, deceptive, misleading, unethical or immoral conduct and practices.
All promotional materials supplied or created by Us must be used in their original form and cannot be changed, amended or altered except with prior written approval from the Company Compliance Department.
The name Kole Jax, each of its product and service names and other names that have been adopted by the Company in connection with its business are proprietary trade names, trademarks and service marks of Kole Jax Designs, LLC. As such, these marks are of great value to the Company and are supplied to Stylists for their use only in an expressly authorized manner.
A Stylist's use of the name "Kole Jax" is restricted to protect the Company's proprietary rights, ensuring that the Company protected names will not be lost or compromised by unauthorized use. Use of the Kole Jax name on any item not produced by the Company is prohibited except as follows:

[Stylist's name] An Independent Stylist of Kole Jax.
[Stylist's name] Independent Business Owner of Kole Jax products and services.

Further procedures relating to the use of the Kole Jax name are as follows:

All stationary (i.e., letterhead, envelopes, and business cards) bearing the Kole Jax name or logo intended for use by the Stylist must be approved in writing by the Company Compliance Department.
Kole Jax Stylists may list "Independent Stylist of Kole Jax" in the white pages of the telephone directory under his or her own name.
Stylists may not use the name "Kole Jax", "Kole Jax Corporate", or "Corporate Office of Kole Jax" in answering the telephone, creating a voice message or using an answering service, such as to give the impression to the caller that they have reached the corporate office. They may state, "Kole Jax Stylist".

Certain photos and graphic images used by Kole Jax in its advertising, packaging, and websites are the result of paid contracts with outside vendors that do not extend to Stylists. If a Stylist wants to use these photos or graphic images, they must negotiate individual contracts with the vendors for a fee.
A Stylist shall not appear on or make use of television or radio or make use of any other media to promote or discuss the Company, its programs, products or services without prior written permission from the Company Compliance Department.
A Stylist may not produce for sale or distribution any Company event or speech, nor may a Stylist reproduce Company audio or video clips for sale or for personal use without prior written permission from the Company Compliance Department.
Kole Jax reserves the right to rescind its prior approval of any sales aid or promotional material to comply with changing laws and regulations and may request the removal from the marketplace of such materials without financial obligation to the affected Stylist.
A Stylist shall not promote non-Kole Jax products or services in conjunction with Company products or services on the same websites or same advertisement.

9.3 Faxes and E-mail Limitations

Except as provided in this section, a Stylist may not use or transmit unsolicited faxes, email, mass email distribution, or 'spamming" that advertises or promotes the operation of the Kole Jax business. The exceptions are:

Faxes or e-mailing any person who has given prior permission or invitation;
Faxing or e-mailing any person with whom the Stylist has established a prior business or personal relationship.

In all states where prohibited by law, a Stylist may not transmit, or cause to be transmitted through a third party, (by telephone, facsimile, computer or other device), an unsolicited advertisement to any equipment, which has the capacity to transcribe text or images from an electronic signal received over a regular telephone line, cable line, ISDN, T1 or any other signal carrying device, except as set forth in this section.
All faxes, e-mail or computer broadcasted documents subject to this provision shall include each of the following:

A clear and obvious identification that the fax or e-mail message is an advertisement or solicitation. The words "advertisement" or 'solicitation" should appear in the subject line of the message;
A clear return path or routing information;
The use of legal and proper domain name;
A clear and obvious notice of the opportunity to decline to receive further commercial facsimile or e-mail messages from the sender;
Unsubscribe or opt-out instructions should be the very first text in the body of the message box in the same size text as the majority of the message;
The true and correct name of the sender, valid senders" fax or e-mail address, and a valid sender physical address;
The date and time of the transmission;
Upon notification by recipient of his or her request not to receive further faxed or e-mailed documents, a Stylist shall not transmit any further documents to that recipient.

All e-mail or computer broadcasted documents subject to this provision shall not include any of the following:

Use of any third-party domain name without permission; and
Sexually explicit materials.

9.4 Internet and Third-Party Website Restrictions

A Stylist may not use or attempt to register any of Kole Jax's trade names, trademarks, service names, service marks, product names, URLs, advertising phrases, the Company's name or any derivative thereof, for any purpose including, but not limited to, Internet domain names (URL), third party websites, e-mail addresses, web pages, or blogs.
A Stylist cannot use or register domain names, email addresses, and/or online aliases that could cause confusion, be misleading, or deceive individuals into believing that a communication is from, or is the property of Kole Jax corporate.
Regarding the registered mark of Kole Jax in URLs, examples of improper use include but are not limited to:

KoleJax@comcast.net;
www.KoleJaxDirect.com;
www.facebook.com/KoleJax; or
Any other derivatives as described herein.

Examples of permitted URLs, email addresses, and online aliases might appear as follows:

Determination as to what could cause confusion, mislead or be considered deceptive is at the sole discretion of the Company. For any questions on what the Company may consider confusing, misleading or deceptive URLs, email addresses or online aliases, the Company encourages Stylists to submit said questions to support@kolejax.com.
A Stylist may not sell Kole Jax products, services or the Kole Jax opportunity via "online auctions," such as eBay®, or "online marketplaces" such as Amazon or Etsy. For more information, please see the Kole Jax Online Marketplace Provision pursuant to Section 9.4(R).
The Company provides all Stylists with one (1) replicated website. Kole Jax replicated website is a personal Stylist website that is hosted on Company servers. As for any Stylist who wishes to develop its own third-party website (or site not affiliated with the Company and independently owned and operated by the Stylist) must seek and receive the Company's prior written approval before going live with such third-party website. Should the Company grant the Stylist approval to use a third-party website, the site must:

Identify yourself as a Stylist for Kole Jax;
Use only the approved images and wording authorized by the Company;
Adhere to the branding, trademark, and image usage policies described in this document.
Adhere to any other provision regarding the use of a third-party website described in this document;
Agree to modify your website to comply with current or future Company policies.

All marketing materials used on a Stylist's third-party website must be provided by the Company in writing.
To avoid confusion, the following three elements must also be prominently displayed at the top of every page of any third-party website:

The Kole Jax Stylist Logo
Your Name and Title
Kole Jax Corporate Website Redirect Button

A Stylist may not use third-party sites that contain materials copied from corporate sources (such as Kole Jax brochures, CDs, videos, tapes, events, presentations, and corporate websites). This policy ensures brand consistency, allows Customers and Stylists to stay up-to-date with changing products, services and information, facilitates enrollment under the correct Sponsor, and assists in compliance with government regulations.
If a Stylist who has received authorization to create and post any third-party website has the business voluntarily or involuntarily canceled for any reason, or if the Company revokes authorization allowing the Stylist to maintain such a third-party website, the Stylist shall assign the URL to the third-party website to the Company within three (3) days from the date of the cancellation and/or re-direct all traffic to the site as directed by the Company. We reserve the right to revoke any Stylist's right to use a third-party website at any time if We believe that such revocation is in the best interest of Kole Jax, its Stylists, and Customers. Decisions and corrective actions in this area are at the Company's sole discretion.
Social Media sites may be used to market Kole Jax products. PROFILES A STYLIST GENERATES IN ANY SOCIAL COMMUNITY WHERE KOLE JAX IS DISCUSSED OR MENTIONED MUST CLEARLY IDENTIFY THE STYLIST AS A KOLE JAX STYLIST, and when a Stylist participates in those communities, he or she must avoid inappropriate conversations, comments, images, video, audio, applications or any other adult, profane, discriminatory or vulgar content. The determination of what is inappropriate is at the Company's sole discretion, and offending Stylists will be subject to disciplinary action. Banner ads and images used on these sites must be current and must come from the Kole Jax approved library. If a link is provided, it must link to the posting Stylist's replicated website or an approved third-party website.
Anonymous postings or use of an alias on any Social Media site is prohibited, and offending Stylists will be subject to disciplinary action.
Stylists may not use blog spam, spamdexing or any other mass-replicated methods to leave blog comments. Comments Stylists create or leave must be useful, unique, relevant and specific to the blog's article.
Stylists must disclose their full name on all Social Media postings, and conspicuously identify themselves as an independent Stylist for Kole Jax. Anonymous postings or use of an alias is prohibited.
Postings that are false, misleading, or deceptive are prohibited. This includes, but is not limited to, false or deceptive postings relating to the Kole Jax income opportunity, the Company products and services, and/or your biographical information and credentials.
Stylists are personally responsible for their postings and all other online activity that relates to Kole Jax. Therefore, even if a Stylist does not own or operate a blog or Social Media site, if a Stylist posts to any such site that relates to Kole Jax or which can be traced to the Company, the Stylist is responsible for the posting. Stylists are also responsible for postings which occur on any blog or Social Media site that the Stylist owns, operates, or controls.
The distinction between a Social Media site and a website may not be clear-cut, because some Social Media sites are particularly robust, Kole Jax therefore reserves the sole and exclusive right to classify certain Social Media sites as third-party websites and require that Stylists using, or who wish to use, such sites adhere to the Kole Jax's policies relating to third-party websites.
If your Kole Jax business is cancelled for any reason, you must discontinue using the Company name, and all of the Company's trademarks, trade names, service marks, and other intellectual property, and all derivatives of such marks and intellectual property, in any postings and all Social Media sites that you utilize. If you post on any Social Media site on which you have previously identified yourself as an independent Kole Jax Stylist, you must conspicuously disclose that you are no longer a Stylist of Kole Jax.
Failure to comply with these Policies for conducting business online may result in the Stylist losing their right to advertise and market Company products, services and the Kole Jax opportunity online or any other disciplinary action available under the Policies and Procedures.
The Company predicates its business on in-home and event sales. Therefore, face-to-face interactions with Customers and Stylists are critical to one's individual success in this business.

9.5 Advertising and Promotional Materials

No special enticement advertising is allowed. This includes, but is not limited to, offers of a free business, free product packages, or other such offers that grant advantages beyond those available through the Company.
Advertising and all forms of communications must adhere to principles of honesty and propriety.
All advertising, including, but not limited to, print, Internet, computer bulletin boards, television, radio, etc., are subject to prior written approval by the Company Compliance Department.
All requests for approvals with respect to advertising must be directed in writing to the Company Compliance Department.
Kole Jax approval is not required to place blind ads that do not mention the Company, its employees, any of its products, services, designs, symbols, programs, and trademarked, copyrighted, or otherwise protected materials.
Kole Jax reserves the right to rescind its prior approval of submitted advertising or promotional materials in order to comply with changing laws and regulations and may require the removal of such advertisements from the marketplace without obligation to the affected Stylist.

9.6 Testimonial Permission

By signing the Stylist Agreement, you give us permission to use your testimonial or image and likeness in corporate sales materials, including but not limited to print media, electronic media, audio and video. In consideration of being allowed to participate in the Kole Jax opportunity, you waive any right to be compensated for the use of your testimonial or image and likeness even though the Company may be paid for items or sales materials containing such image and likeness. In some cases, a Stylist's testimonial may appear in another Stylist's advertising materials. If a Stylist does not wish to participate in Kole Jax sales and marketing materials, he or she should provide a written notice to the Company Compliance Department to ensure that his or her testimonial or image and likeness will not be used in any corporate materials, corporate recognition pieces, advertising or recordings of annual events.

9.7 Telemarketing Limitations

A Stylist must not engage in telemarketing in relation to the operation of his or her Kole Jax business. The term "telemarketing" means the placing of one or more telephone calls to an individual or entity to induce the purchase of Kole Jax products or services, or to recruit them for the Kole Jax opportunity.
The Federal Trade Commission ("FTC") and the Federal Communications Commission ("FCC") each have laws that restrict telemarketing practices. Both federal agencies, as well as a number of states have "do not call" regulations as part of their telemarketing laws.
While a Stylist may not consider herself a "telemarketer" in the traditional sense, these regulations broadly define the term "telemarketer" and "telemarketing" so that the unintentional action of calling someone whose telephone number is listed on the Federal "Do Not Call" registry could cause the Stylist to violate the law. These regulations must not be taken lightly, as they carry significant penalties (up to $11,000 per violation).
"Cold calls" or 'state-to-state calls" made to prospective Customers or Stylists that promote either Kole Jax products, services or the Kole Jax opportunity is considered telemarketing and is prohibited.
Exceptions to Telemarketing Regulations. A Stylist may place telephone calls to prospective Customers or Stylists under the following limited situations:

If the Stylist has an established business relationship with the prospect;
In response to the prospect's personal inquiry or application regarding a product or service offered by the Stylist within three (3) months immediately before the date of such a call;
If the Stylist receives written and signed permission from the prospect authorizing the Stylist to call;
If the call is to family members, personal friends, and acquaintances. However, if a Stylist makes a habit of collecting business cards from everyone he/she meets and subsequently calls them, the FTC may consider this a form of telemarketing that is not subject to this exemption;
A Stylist engaged in calling "acquaintances," must make such calls on an occasional basis only and not as a routine practice.

A Stylist shall not use automatic telephone dialing systems in the operation of her Kole Jax businesses.
Failure to abide by Company policies or regulations as set forth by the FTC and FCC regarding telemarketing may lead to sanctions against the Stylist's business, up to and including termination of the business.
By signing the Stylist Agreement, or by accepting commission checks, other payments or awards from Kole Jax, a Stylist gives permission to Kole Jax and other Stylists to contact them as permitted under the Federal Do Not Call regulations.
In the event a Stylist violates this section, We reserve the right to institute legal proceedings to obtain monetary or equitable relief.

10.0 CHANGES TO A STYLIST's BUSINESS

10.1 Modification of the Stylist Agreement

A Stylist may modify the existing Stylist Agreement (i.e., change a social security number to a Federal ID number, add a spouse or partner to the account, or change the form of ownership from an individual to a Business Entity owned by the Stylist) by submitting a written request, accompanied by a new Stylist Agreement and the Business Registration Form, if applicable, completed with fresh signatures (not a "crossed out" or "white-out" version of the first Agreement), and any appropriate supporting documentation.

10.2 Change Sponsor or Placement for Inactive Stylists

At the discretion of the Company, Stylists who neither sold nor purchased products for at least twelve (12) months, and who have not tendered a letter of resignation, are eligible to re-enroll in the Company under the Sponsor/Placement of their choice.
Upon written notice to the Company that a former Stylist wishes to re-enroll, Kole Jax will "compress" (close) the original account. A new Stylist ID number will then be issued to the former Stylist.
Such Stylist does not retain former rank, downline, or rights to commission checks from the former organizations.
The Company reserves the right to correct Sponsor or Placement errors at any time and in whatever manner it deems necessary.

10.3 Change Organizations

If a Stylist wishes to transfer organizations, he or she must submit a letter of resignation to the Company Customer Service Department and remain inactive (neither buy or sell) with or in Kole Jax for twelve (12) months from the receipt of the letter before being eligible to re-enroll under a different Sponsor/Placement.
The Company retains the right to approve or deny any request to re-enroll after a Stylist's resignation.
If re-enrollment is approved, the former Stylist will be issued a new Stylist ID number and will be required to submit a new Stylist Agreement. The Stylist will not be entitled to keep any former rank, downline, or rights to commission checks from any prior organization.
Transfers may not be done outside of the original organization.

10.4 Unethical Sponsoring

Unethical sponsoring activities include, but are not limited to, enticing, bidding or engaging in unhealthy competition in trying to acquire a prospect or new Stylist from another Stylist or influencing another Stylist to transfer to a different sponsor.
Allegations of unethical sponsoring must be reported in writing to the Company Compliance Department within the first 90 days of enrollment. If the reports are substantiated, Kole Jax may transfer the Stylist or the Stylist's downline to another sponsor, Placement or organization without approval from the current up-line Sponsor or Placement Stylists. The Company remains the final authority in such cases.
Kole Jax prohibits the act of 'stacking." Stacking is the unauthorized manipulation of the Company compensation system and/or the marketing plan in order to trigger commissions or cause a promotion off a downline Stylist in an unearned manner. One example of stacking occurs when a Sponsor places participants under an inactive downline without his or her knowledge in order to trigger unearned qualification for commissioning. Stacking is unethical and unacceptable behavior, and as such, it is a punishable offense with measures up to and including the termination of the independent consultant positions of all individuals and/or entities found to be directly involved.
Should Stylists engage in solicitation and/or enticement of members of another direct sales company to sell or distribute Kole Jax products and services to, they bear the risk of being sued by the other direct sales company. If any lawsuit, arbitration, or mediation is brought against a Stylist alleging that they engaged in inappropriate recruiting activity of another company's sales force or Customers, the Company will not pay any of the Stylist's defense costs or legal fees, nor will the Company indemnify the Stylist for any judgment, award, or settlement.

10.5 Sell, Assign or Delegate Ownership

To preserve the integrity of the hierarchical structure, it is necessary for Kole Jax to place restrictions on the transfer, assignment, or sale of a business.
A Stylist may not sell or assign rights or delegate the position as a Stylist without prior written approval by Kole Jax, which approval will not be unreasonably withheld, and the approval of seven (7) upline Stylists in the Seller's line of sponsorship. Any attempted sale, assignment, or delegation without such approval may be voided at the discretion of the Company.
Should the sale be approved by the Company, the Buyer assumes the position of the Seller at the current qualified title, but at the current "paid as" rank, at the time of the sale and acquires the Seller's Downline.
To request corporate authorization for a sale or transfer of a Kole Jax business, the following items must be submitted to the Company Compliance Department:

A Sale/Transfer of Business Form properly completed, with the requisite signatures.
A copy of the Sales Agreement signed and dated by both Buyer and Seller.
A Stylist Agreement completed and signed by the Buyer;
Payment of the $100 administration fee;
Any additional supporting documentation requested by the Company.

Any debt obligations that either Seller or Buyer may have with Kole Jax must be satisfied prior to the approval of the sale or transfer by the Company.
A Stylist who sells his or her business is not eligible to re-enroll as a Stylist in any organization for twelve (12) full calendar months following the date of the sale except as otherwise expressly set forth in these Policies and Procedures.

10.6 Separating a Stylist's Business

Pending a divorce or dissolution of a partnership or other business entity, the parties must adopt one of the following methods of operation:

One of the parties may, with the written consent of the other(s), operate the Kole Jax business whereby the relinquishing Spouse, shareholders, partners, members or trustees authorize the Company to deal directly and solely with the other Spouse, non-relinquishing shareholder, partner, member or trustee;
The parties may continue to operate the Kole Jax business jointly on a "business as usual" basis, whereupon all compensation paid by the Company will be paid in the name designated as the Stylist or in the name of the entity to be divided, as the parties may independently agree between them. If no name is stipulated, Kole Jax will pay compensation to the name on record and in such event, the Stylist named on the account shall indemnify Kole Jax from any claims from the other business owner(s) or the other Spouse with respect to such payment.

Kole Jax recognizes only one Downline organization and will issue only one commission check per Kole Jax business per commission cycle. Under no circumstances will the Downline of an organization be divided, nor will Kole Jax split commission and/or bonus checks.
If a relinquishing Spouse, partner or owner of the business has completely relinquished ("Relinquishing Party"), in writing, all rights to the original Kole Jax business, he or she may immediately thereafter re-enroll under the Sponsor and Placement of his or her choice. In such cases, however, the Relinquishing Party shall have no rights to, and shall not solicit, any Stylist or active Customer in the former organization, and must develop a new business in the same manner as any other new Stylist. A Stylist in the Relinquishing Party's former Downline who wishes to transfer to the Relinquishing Party's new organization or to any other organization, must comply with the requirements in Section 12.5.

10.7 Succession

Upon the death or incapacity of a Stylist, the Stylist's business may be passed on to his or her legal successors in interest (successor). Whenever a Kole Jax business is transferred by will or other testamentary process, the successor acquires the right to collect all bonuses and commissions of the deceased Stylist's sales organization. The successor must:

Complete and sign a new Stylist Agreement;
Comply with the terms and provisions of the Stylist Agreement; and
Meet all of the qualifications for the last rank achieved by the former Stylist.

Bonus and commission checks of a Kole Jax business transferred based on this section will be paid in a single check to the successor. The successor must provide the Company with an "address of record" to which all bonus and commission Payments will be sent. Payments will be based on the current performance of the business, not the highest rank or volume achieved.
If the business is bequeathed to joint devisees (successors), they must form a business entity and acquire a Federal taxpayer identification number. Kole Jax will issue all bonus and commission payments and one 1099 Miscellaneous Income Tax form to the managing business entity only.
Appropriate legal documentation must be submitted to the Company Compliance Department to ensure the transfer is done properly. To affect a testamentary transfer of a Kole Jax business, the successor must provide the following to the Company Compliance Department:

A certified copy of the death certificate; and
A notarized copy of the will or other appropriate legal documentation establishing the successor's right to the Kole Jax business.

To complete a transfer of the Kole Jax business because of incapacity, the successor must provide the following to the Company Compliance Department:

A notarized copy of an appointment as trustee;
A notarized copy of the trust document or other appropriate legal documentation establishing the trustee's right to administer the Kole Jax business; and
A completed Stylist Agreement executed by the trustee.

If the successor is already an existing Stylist, the Company will allow such Stylist to keep his or her own business plus the inherited business active for up to six (6) months. By the end of the 6-month period, the Stylist must have compressed (if applicable), sold or otherwise transferred either the existing business or the inherited business.
If the successor wishes to terminate the Kole Jax business, he or she must submit a notarized statement stating the desire to do so, along with a certified copy of the death certificate, appointment as trustee, and/or any other appropriate legal documentation.
Upon written request, Kole Jax may grant a one (1) month bereavement waiver and pay out at the last "paid as" rank.

10.8 Resignation/Voluntary Cancellation

A Stylist may immediately terminate his or her business by submitting a written notice or email to the Company Compliance Department. The written notice must include the following:

The Stylist's intent to resign;
Date of resignation;
Kole Jax Identification Number;
Reason for resigning; and
Signature.

A Stylist may not use resignation or voluntary cancellation as a way to immediately change Sponsor and Placement. Instead, the Stylist who has voluntarily resigned is not eligible to reapply for a business or have any financial interest in a or any Kole Jax business for twelve (12) months from the receipt of the written notice of resignation.
Following any voluntary cancellation, a Stylist:

Shall have no right, title, claim or interest to any commission or bonus from the sales generated by the Stylist's former organization or any other payments in association with the Stylist's former independent business;
Effectively waives any and all claims to property rights or any interest in or to the Stylist's former downline organization;
Shall receive commissions and bonuses only for the last full pay period in which he or she was active prior to cancellation, less any amounts withheld during an investigation preceding an involuntary cancellation, and less any other amounts owed to the Company.

10.9 Involuntary Termination

Kole Jax reserves the right to terminate a Stylist's business for, but not limited to, the following reasons:

Violation of any terms or conditions of the Stylist Agreement;
Violation of any provision in these Policies and Procedures;
Violation of any provision in the Compensation Plan;
Violation of any applicable law, ordinance, or regulation regarding the Kole Jax business;
Engaging in unethical business practices or violating standards of fair dealing; or
Returning over $300 worth of products, services and/or sales tools for a refund within a twelve (12) month period.

Kole Jax will notify the Stylist in writing at the last known address of the intent to terminate the Stylist's business and the reasons for termination. The Stylist will then have seven (7) calendar days from the date of such notice to appeal the termination in writing. Kole Jax must receive the Stylist's written appeal within seven (7) calendar days of the date of the termination letter. If the written appeal is not received within this time period, the termination will be considered final.
If the Stylist does file a timely appeal of termination, Kole Jax will review its decision, along with any other information it may deem relevant, reconsider any other appropriate action, and notify the Stylist of its decision. The decision of Kole Jax is then considered final and not subject to further review.
If the termination is not rescinded, the termination will be effective as of the date of the original termination notice by Kole Jax. The former Stylist shall thereafter be prohibited from using the names, marks or signs, labels, stationery, advertising, or business material referring to or relating to any Kole Jax products or services. The Company will notify the active Upline Sponsor of the termination, and the organization of the terminated Stylist will "roll up" to the active Upline Sponsor on record.
The Stylist who is involuntarily terminated by the Company may not reapply for a business, either under the present name or any other name or entity, without the express written consent of an officer of Kole Jax. In any event, such Stylist may not re-apply for a business for twelve (12) months from the date of termination.

11.0 DISCIPLINARY SANCTIONS

11.1 Imposition of Disciplinary Action - Purpose

It is the spirit of Kole Jax that integrity and fairness should pervade among its Stylists, thereby providing everyone with an equal opportunity to build a successful business. Therefore, We reserve the right to impose disciplinary sanctions at any time, when We determine that a Stylist has violated the Agreement, any of these Policies and Procedures, or the Compensation Plan as may be amended from time to time by the Company.

11.2 Consequences and Remedies of Breach

Disciplinary actions may include one or more of the following:

Monitoring a Stylist's conduct over a specified period of time to assure compliance;
Issuance of a written warning or requiring the Stylist to take immediate corrective action;
Imposition of a fine (which may be imposed immediately or withheld from future commission payments) or the withholding of commission payments ("Commission Hold") until the matter causing the Commission Hold is resolved or until the Company receives adequate additional assurances from the Stylist to ensure future compliance;
Suspension from participation in Company or Stylist-related events, rewards, or recognition;
Suspension of the Stylist Agreement and your business for one or more pay periods;
Involuntary termination of the Stylist Agreement and your business;
Any other measure which We deem feasible and appropriate to justly resolve injuries caused by the Stylist's violation or contractual breach; OR
Legal proceedings for monetary or equitable relief.

12.0 DISPUTE RESOLUTION

12.1 Grievances

If a Stylist has a grievance or complaint against another Stylist regarding any practice or conduct relating to their respective Kole Jax businesses, the Stylist is encouraged to resolve the issue directly with the other party. If an agreement cannot be reached, it must be reported directly to the Company Compliance Department as outlined below.
The Compliance Department will be the final authority on settling such grievance or complaint and its written decision shall be final and binding on the Stylists involved.
Kole Jax will confine its involvement to disputes regarding Kole Jax business matters only. We will not decide issues that involve personality conflicts or unprofessional conduct by or between Stylists outside the context of Company business. These issues go beyond the scope of the Company and may not be used to justify a Sponsor, placement change or transfer.
Kole Jax does not consider, enforce, or mediate third party agreements between Stylists, nor does it provide names, funding, or advice for obtaining outside legal counsel.
Process for Grievances:

A Stylist should submit a written letter of complaint (e-mail will not be accepted) directly to the Company Compliance Department. The letter shall set forth the details of the incident as follows:

The nature of the violation and specific facts to support such allegations;
Dates and the number of occurrences;
Persons involved; and
Any other supporting documentation.

Upon receipt of the written complaint, Kole Jax will conduct a general investigation.

Kole Jax will make a final decision and timely notify the Stylists involved.

12.2 Arbitration

Any controversy or claim arising out of or relating to the Agreement and/or these Policies and Procedures (or the breach thereof), your business or any other dispute between the Company and you, shall be settled by binding and confidential arbitration administered by the American Arbitration Association under its commercial arbitration rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Any such arbitration shall be held in Puyallup, Washington. There shall be one arbitrator, who shall have expertise in business law transactions and who shall be knowledgeable in the direct selling industry, selected from a panel provided by the American Arbitration Association.
The prevailing party in any such arbitration shall be entitled to receive from the losing party, all costs and expenses of arbitration, including reasonable attorney's fees and filing fees. The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to judgment in any court of competent jurisdiction.
This agreement to arbitration shall survive any termination or expiration of the Agreement.
Nothing in these Policies and Procedures shall prevent Kole Jax from applying for or obtaining from any court having jurisdiction a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction, or other relief available to safeguard and protect the Company's interests or its Confidential Information prior to, during or following the filing of an arbitration or other proceeding, or pending the rendition of a decision or award in connection with any arbitration or other proceeding.
NO CLASS ACTION, OR OTHER REPRESENTATIVE ACTION OR PRIVATE ATTORNEY GENERAL ACTION OR JOINDER OR CONSOLIDATION OF ANY CLAIM WITH A CLAIM OF ANOTHER PERSON OR CLASS OF CLAIMANTS SHALL BE ALLOWABLE.
G. These Policies and Procedures and any arbitration involving a Stylist and the Company shall be governed by and construed in accordance with the laws of the state of Washington, without reference to its principles of conflict of laws.

12.3 Damages

In any case which arises from or relates to the wrongful termination of the Stylist Agreement and/or a Stylist's Kole Jax business, the Company and Stylist agree that damages will be extremely difficult to ascertain. Therefore, the Company and Stylist stipulate that if the involuntary termination of the Stylist Agreement and/or loss of the Stylist's Kole Jax business is proven and held to be wrongful under any theory of law, the Stylist's sole remedy shall be liquidated damages calculated as follows:

For Stylists of any level, liquidated damages shall be in the amount of his/her gross compensation that he/she earned pursuant to the Kole Jax Compensation Plan in the twelve (12) months immediately preceding the termination.

In any action arising from or relating to the Agreement, the Kole Jax business, or the relationship between the Company and Stylist, both parties waive all claims for incidental and/or consequential damages, even if the other party has been apprised of the likelihood of such damage. The Company and Stylist further waive all claims to exemplary and punitive damages.

12.4 Severability

If any provision of these Policies and Procedures is found to be invalid, or unenforceable for any reason, only the invalid provision shall be severed. The remaining terms and provisions hereof shall remain in full force and shall be construed as if such invalid or unenforceable provision never had comprised a part of these Policies and Procedures.

12.5 Waiver

Only an officer of Kole Jax can, in writing, affect a waiver of these Policies and Procedures. The Company's waiver of any particular breach by a Stylist shall not affect Our rights with respect to any subsequent breach, nor shall it affect the rights or obligations of any other Stylist.
The existence of any claim or cause of action of a Stylist against the Company shall not constitute a defense to Our enforcement of any term or provision found in these Policies and Procedures.

12.6 Successors and Claims

The agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.

13.0 GOVERNING LAW

These Policies and Procedures shall be governed by and construed in accordance with the Laws of the State of Washington and the exclusive jurisdiction of the United States courts.

14.0 GLOSSARY OF TERMS

ACTIVE STYLIST: A Stylist who satisfies the minimum volume requirements as defined in the Compensation Plan to ensure eligibility for commissions and bonuses.

AGREEMENT: The contract between the Company and each Stylist, which includes: the Stylist Agreement, these Policies and Procedures, and the Company Compensation Plan, all in their current form and as amended by the Company in the future. These documents are collectively referred to as the "Agreement".

STYLIST: An individual who purchases product, generates retail sales and business building commissions.

CANCEL: The termination of a Stylist's business. Cancellation may be either voluntary or involuntarily.

COMPENSATION PLAN: The guidelines and referenced literature for describing how Stylists can generate commissions and bonuses.

CUSTOMER: A Customer who purchases Kole Jax products and does not engage in the retailing of product or the building of a business.

LINE OF SPONSORSHIP (LOS): A report generated by Kole Jax that provides critical data relating to the identities of Stylists, sales information, and enrollment activity of each Stylist's organization. This report contains confidential and trade secret information which is proprietary to Kole Jax.

ORGANIZATION: The Customers and Stylists placed below a particular Stylist.

OFFICIAL COMPANY MATERIALS: Literature, audio or video tapes, and other materials developed, printed, published, and distributed by Kole Jax to its Stylists.

PLACEMENT: Your position inside your Sponsor's organization.

RECRUIT: For purposes of Kole Jax's Conflict of Interest policy, the term "Recruit" means the actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another Customer or Stylist to enroll or participate in another multilevel marketing, network marketing, or direct sales opportunity.

RESALABLE: Products shall be deemed "resalable" if each of the following elements is satisfied: (i) the products remain unopened and unused; (ii) the original product packaging and labelling is unaltered and free from damage; (iii) the products are in a condition such that it is a commercially reasonable practice within the trade to sell the merchandise at full price; and (iv) the product contains current Kole Jax labelling. Any merchandise that is clearly identified at the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be resalable.

SPONSOR: A Stylist who enrolls a Customer or another Stylist into the Company, and is listed as the Sponsor on the Stylist Agreement. The act of enrolling others and training them to become Stylist is referred to as 'sponsoring".

UPLINE: This term refers to the Stylist or Stylists above a particular Stylist in a sponsorship line up to the Company. It is the line of sponsors that links any particular Stylist to the Company.

Policies and Procedures

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