Dear Potential Distributor: Thank you for considering participation in the Essations Multi-Textural Collection Distributorship Program. Clintex Laboratories has worked very hard in developing something new and exciting; a product line that everyone can use. After years of research and development, endless testing, and the long search for the best packaging, we finally produced what is now known as the Essations Multi-Textural Collection. This line was created to provide the absolute best in quality hair products to every hair texture. We guarantee providing you with consistently high quality hair care products that cater to every texture of hair. Within our professional line, we have hair solutions in all facets of hair care, including relaxers and bases, shampoos, conditioners, thermal straighteners, and many styling and finishing aids. We also test and introduce new products frequently so we can maintain our level of innovation. In addition to being the manufacturer of one of the most sought after relaxer systems in the industry, Essations is quickly becoming a company nationally noted for its innovation, education, and training services. Our primary goal in product distribution is not only to offer superior products at competitive prices, but also to heighten the level of professional awareness in the industry itself. Through education, specialized consultation, and specific marketing tools, Essations has formulized a plan to effectively take cosmetologist to their own personal “Next Level”. In doing this, we are partnering with distributors nationwide to provide these tools to their clientele. Please note that the most important aspect of Essations Multi-Textural Collection is that we are strictly a professional line of hair care products that are available only to licensed cosmetologist through our exclusive distributors. Our brand is not available to retail supply houses. Since we are a professional line only servicing licensed cosmetologists, diversion is not acceptable. In our efforts to protect our line from being sold in the retail arena, we deal exclusively with distributors who only cater to licensed stylists. Furthermore, in our attempt to keep a high level of integrity in our product, we have developed a comparable pricing structure to other exclusive brands in the industry. Being similar in our pricing structure, you should find it simple to match our products with those of our competitors. In saying this, please be advised that any distributor that is guilty of product diversion or price gouging will immediately have their inventory taken, and will be subject to have legal actions taken upon them. Enclosed, please find copies of our distributorship application, requirements, terms and policies. Also included is a sample of some of our printed promotional pieces and brochures, and a distributor’s price list. After you have placed your first order with Clintex Laboratories, Inc., we will send a representative to visit your territory. He/she will review product knowledge with you and your staff, reiterate our programs and policies, answer any questions that you and/or your staff may have, and work with your sales team to help generate new sales. We are always open to suggestions and ideas for new programs. Should you have any questions or comments, please feel free to contact me, Stephanie Waiters, at (773) 493-9777. Thank you and we look forward to doing business with you. Sincerely, Stephanie Waiters Clintex Laboratories, Inc. Essations Professional Division SALES OBJECTIVE To become the leader in distributing premium products at a competitive cost to targeted cosmetologists worldwide. Create product value for Essations brands throughout assigned territories. Increase brand awareness by targeting all salons with marketing material. Develop the assigned territory by increasing the Company professional brands sales, distribution, layout and POS location in professional outlets (beauty salons, schools, etc.) in line with the Company standards. Achieve the Company targets on professional brands' sales and distribution in the assigned territory. Promote Essations products and service among the cosmetologists in assigned territories. Increase salon usage of individual brand items by selling systems. Increase stylist loyalty through would class customer service. Enhance salon productivity by creating tailored programs for individual salons. Develop additional revenue for stylists. Improve communication with customers. Empower stylists through continued education, including business building. Ensure the cosmetologists constantly improve their knowledge of Essations products. To plan and implement an effective visiting schedule in the assigned territory. To develop close working relationships with the salons and present the Company in a professional manner. Raise industry awareness and gain interest in retaining the integrity of it. Search constantly for new salons in assigned territories. Participate actively in promotions. Provide timely necessary reports informing on sales, distribution, layout and merchandising. Actively participate in required ongoing training. Sustain an account in good standing with Essations, and keep well maintained levels of inventory. Distributor Education and Training New Distributor Specific Training Courses Customer Retention Training Sales Training Business Processes Training Intense Product Knowledge Training Leadership / Business Philosophy On-Going Training Attending Customer Focused Education Periodic Monthly Meetings To Reinforce Initial Training Quarterly Webinars Yearly Meetings Requirements for Distributorship Qualifications for New Distributors Targeted Single Line Distributors Full Time Representative Registered Business License in the State of Sale Federal Tax ID Number Business Bank Account Approved Distributor Application Terms of Contract Distributor Signed Non-Exclusive Agreement Each Distributor Will Be Given a Secured Territory Re-Negotiable Yearly $3000 Initial Investment. Must be able to project a 12 month sales plan for territory. The Essations Multi-Textural Collection MUST remain a professional brand sold only to licensed cosmetologists and beauty schools. Any violators of this requirement will AUTOMATICALLY lose his/her right to distribute the product. APPLICATION Please find attached the Distributorship application. Completely fill out and submitted this form to Clintex Laboratories. Once received, it will be reviewed, and you will be contacted within two weeks with approval or declining. Upon acceptance, you will be forwarded additional information which includes detailed program information, terms, policies, and a territory agreement. This arrangement must me also be signed and returned before the initial order can be placed. ORDERING Once the application process is complete and a territory has been established, Essations representatives are available to assist in the initial ordering process. The introductory kit will be offered in new areas, which is a boxed deal designed to let cosmetologists sample some of the most popular items in the line at a fraction of the cost. Also, distributors will receive a list of the best selling items in the line so they can be incorporated in the initial order. These supplies will be requisitioned as a mix between kits and open stock. Suggested orders will be submitted to the distributor for approval before sent for processing. Opening orders must total at least $3000. Minimum orders are $6000 per month average for distributorships, and $8000 per month average for our business partners. All orders must be placed through your sales representative, or by faxing our offices to the attention of Stephanie Waiters at (773) 493-9829. PAYMENTS Initially, there are no credit terms. All orders must be prepaid, or paid C.O.D. Credit terms will only be considered after a credit application has been submitted to Clintex Laboratories, Inc. Once credit terms are given, please note that all invoices must be paid on time. If a payment problem arises, future orders will be subject to being held, and credit privileges may be cancelled. Make all payments to: Clintex Laboratories, Inc. 140 W. 62nd Street Chicago, IL 60621 Attn: Stephanie Waiters MARKETING AND PULL THROUGH PROGRAM Essations is committed to increasing distribution in your area to our immediate stylist demographic. Included are; Stylist within the ages of 22+ Ethnic, multi-cultural, and multi-textural salons Salon owners/operators Stylists who stay educationally enhanced Versatile stylists who appreciate new trends and traditional styles Stylists who understand the importance of healthy hair In-Store Marketing Tools Product knowledge presentation to sales team and personnel Professional sales person assistance Professional full color brochures POP support selling sheets for individual products (highlighted product changes quarterly) In-Store flyers Ads/Coupons in distributor sales publications Bi-monthly deal packages Posters Window/Door decals Samples (highlighted product changes quarterly) In-Store raffles for bi-monthly prize Regional Marketing Tools In-Salon classes In-Salon promotions Regional classes Regional trade shows Regional stylist search Regional mass mailings from the company National Marketing Tools Ads in national publications Essations web site (all distributors and classes will be updated frequently) Company referrals Distributor selling incentives SHIPPING POLICY The following make an order qualify for free freight: All orders that total $3,000.00 or more (before taxes and after all discounts) The payment must be received by the company within the allotted payment terms Orders paid in full prior to shipping: 1. All orders that total less than $3,000.00 and are paid in full prior to shipping, will be shipped freight collect. The customer will be responsible for the incurred freight costs. 2. All orders that total $3,000.00 or more (before taxes and after discounts), and are paid in full prior to shipping, will be shipped with the freight pre-paid by Clintex Laboratories, Inc. Orders shipped prior to payment: 1. All orders shipped prior to full payment will be sent freight collect. The customer will be responsible for paying the freight at the time of delivery. 2. If the order qualifies for free freight, the customer should deduct the cost of the freight from the invoice payment. 3. The following must be enclosed with the payment: A copy of the Clintex Laboratories, Inc. invoice being paid The original freight bill A copy of the check, or other proof of payment for the freight 4. If the order does not quality for free freight, the customer will be responsible for the incurred freight costs. RETURN POLICY 1. The customer must submit a written Request for Return of Products to Clintex Laboratories, Inc. a) The customer must submit a written request that details the following: Name of each product being returned Size and quantity of each product and size being returned Reason why the customer wants to return the product(s) 2. If Clintex Laboratories, Inc. receives your Request for Return of Products AND your reason for returning the product is due to an error on Clintex’s part (i.e. we erroneously shipped product that was not requested), Clintex will schedule a day that the products will be picked up, and will be responsible for the shipping and handling. a) Clintex will notify the customer of the scheduled pick-up date and carrier, and will prepay for the freight. b) If the customer and his/her representative(s) will not be available on the scheduled pick-up date, the customer is responsible for notifying Clintex at least 48 hours prior to the specified date. This will allow Clintex sufficient time to re-schedule the pick-up date. Failure to give Essations a 48-hour advance notice will automatically make the customer responsible for the cost of the freight (unless otherwise approved by management). c) Make sure that the products are packed tight and secure. d) Address the box(es) to: Clintex Laboratories, Inc. 140 W. 62nd Street Chicago, IL 60621 3. If Clintex Laboratories, Inc. receives your Request for Return AND the reason for returning the product is not due to an error on Clintex’s part, Clintex will schedule a day that the products will be picked up, and the customer will be responsible for the cost of shipping and handling. a) The customer will be responsible for certain fees: FREIGHT – The customer will be responsible for the cost of shipping the product from his/her establishment to Clintex’s warehouse. RESTOCKING FEES – The customer will be responsible for paying a restocking fee, which is the greater of $25.00, or 20% of the products’ value. b) If the customer and his/her representative(s) will not be available on the scheduled pick-up date, the customer is responsible for notifying Clintex at least 48 hours prior to the specified date. This will allow sufficient time to re-schedule the pick-up date. Failure to give us a 48hour advanced notice will result in a $15.00 fee (this fee may vary depending on the charges incurred from the freight carrier). c) Make sure that the products are packed tight and secure. d) Address the box(es) to: Clintex Laboratories, Inc. 140 W. 62nd Street Chicago, IL 60621 4. When the products are received at the Clintex warehouse, a credit memo will be issued to the customer for the returned products less any fees incurred. Clintex Laboratories, Inc. Essations Professional Division Distributorship Program Application (Please type or print in ink.) Personal Information Name: _____________________________________________________________________ Address: ___________________________________________________________________ (Street Address) (City, State, Zip) Phone Number: __________________________ Cell/Pager Number: ___________________ Driver’s License Number: _________________________________ Business Information Company Name: _____________________________________________________________ Address: ___________________________________________________________________ (Street Address) (City, State, Zip) Business Phone Number: ______________________ Fax Number: ____________________ Bank Account? Checking: _____________ Savings: _____________ Bank Name: _________________________________________________________________ Address: ___________________________________________________________________ (Street Address) (City, State, Zip) Bank Phone Number: _________________________ How long with bank? ______________ Federal Tax ID Number (EIN#): ________________________ Reseller’s License Number: ____________________________ List of Three Professional References: Name: _____________________________________________________________________ Address: ___________________________________________________________________ (Street Address) (City, State, Zip) Business phone Number: ________________________ Fax Number: __________________ Name: _____________________________________________________________________ Address: ___________________________________________________________________ (Street Address) (City, State, Zip) Business phone Number: ________________________ Fax Number: __________________ Name: _____________________________________________________________________ Address: ___________________________________________________________________ (Street Address) (City, State, Zip) Business phone Number: ________________________ Fax Number: __________________ I certify that the information on this application is true, correct, and complete. I understand that any misstatement and/or omission of fact on this application may result in my dismissal and/or cancellation of any contracts/agreements between Easy Pro, Inc. and myself and/or company. ____________________________________________ (Applicant’s Signature) ____________________________ (Date)