POLICIES & PROCEDURES

PurpleU BUSINESS MEMBER AGREEMENT

A Business Member (hereinafter “BM;” BMs may also be referred to as “Business Members” or by similar nomenclature in other Company materials) of the PurpleU USA, Inc. (hereinafter “PurpleU”) marketing program. 

BUSINESS MEMBER QUALIFICATIONS

To become a BM, you must be at least 18 years of age, be a U.S. citizen or permanent resident, possess a valid Social Security Number or Tax Identification Number, and be sponsored by a current BM. If you do not have a Lead BM, you will be assigned one by the PurpleU in accordance with our policy on assignments. In order to join the PurpleU, you must visit our website http://www.purpleu-us.com and submit the online form, which includes the electronic acceptance of the BM Agreement and your payment for the purchase of a business pack. The Business pack will help you become familiar with the PurpleU products and other matters and will help you facilitate sales. As soon as the Company approves your BM Agreement and has received your payment, your PurpleU business is ready for launch!

Currently, PurpleU operates in the United States and South Korea. The BM Agreement does not transfer to another country in which the Company may operate in the future. BMs may not solicit, sell, or fulfill orders to international destinations or cross-border. BMs should be cautious of solicitations they receive to ship products outside of the United States as many such solicitations are fraudulent. If BM anticipates relocating outside of the United States, BM should contact PurpleU to better understand whether their BM Agreement will be terminated, or if you will be permitted to conduct online sales over the internet with customers exclusively located within the United States. Such permission will be granted on a case-by-case basis only and then only if such BM originated as a U.S. based BM and had remained an active BM for at least six months prior to moving internationally.

COMPENSATION PLAN

BM’s commissions, bonuses, rewards, and titles are based upon the PurpleU Compensation Plan which is incorporated into this Agreement by reference. Please review the Compensation Plan for complete details, a copy of which can be reviewed here: [www.purpleu-us.com/compplan].

PurpleU BUSINESS MEMBER STATUS

BM status is used to determine a BM’s eligibility to receive bonuses, commissions, and rank advancements. Definitions of each status level are:

Active: A PurpleU BM active status could be achieved when personal sales volume (PSV) becomes at least 50 PSV per month. Its timeline will end at 11:59 p.m. (MST) on the last day of the month. Active members are only eligible to receive Retail Profits from the sale of PurpleU products to your customers. The Initial Order Bonus will be paid after achieving Active Member Status.

Inactive: A PurpleU BM who has no PSV & RCV over the bonus period is not eligible for any bonuses and commissions. If a business member has no purchase history for 12 months, he/she will be considered inactive.

Resigned: Any BM who officially resigns from the Company, by providing written notice to the Company.

TERMS OF SALE

By enrolling in the PurpleU business member program you are agreed to allow PurpleU to store your credit card information for future transactions including any additional orders. You can cancel the order at any time prior to the order being shipped from your business back office. If your order has been shipped already then please refer to the return procedure in our Return Policy. Charges will appear from PurpleU-us.com on your bank statement.

ORDERS AND SUBSCRIPTIONS

Business members can set their own subscription orders at any time and select their own choice of products. The orders cannot exceed $705.00 per order on skincare, haircare, and body care products. BMs can cancel it at any time before the PAYMENT is made. However, when the subscription orders payment is made it cannot be canceled and business members must go through a return process.

PurpleU BUSINESS MEMBER RANKS

Your PurpleU BM Rank is determined by your personal sales, team sales, personally enrolled active BM numbers, and the number of qualified ranks in your team. Your PurpleU BM Rank is determined according to the PurpleU Compensation Plan.

ONLINE AGREEMENT

BMs must read the online Business Member Agreement in its entirety before submitting the online Business Member Agreement.

BUSINESS MEMBER ID

All BMs must provide a valid taxpayer identification number (such as a valid Social Security Number, EIN number, etc.) The Company will use this number for tax reporting purposes. You will be automatically assigned a non-changeable Business Member ID that has no relationship with your Social Security Number.

INDEPENDENT CONTRACTOR STATUS

You understand that you are not an employee of PurpleU and shall not be entitled to receive any benefits from PurpleU whatsoever. PurpleU shall not be required to make contributions for employment insurance, Workers’ Compensation, and other similar programs in respect of payments to be made. You shall be fully responsible for paying all applicable local, state, and federal taxes related to your earnings and activities as a BM. PurpleU does not provide any accounting advice and as such suggests that you speak with your own accountants and advisors as to what taxes and fees will be applicable to your own situation.

You agree that as a BM you are an independent contractor, and not an employee, agent, partner, legal representative, or franchisee of PurpleU. You shall be solely responsible for paying all expenses incurred by yourself, including but not limited to travel, food, lodging, secretarial, office, internet, and other expenses. You will have and maintain control of the manner and means of your performance. You will have no power or authority to incur any debt, obligation, or liability on PurpleU’s behalf.

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

Control: Subject to the terms of the BM Agreement, and other applicable laws, BMs shall have complete control and discretion over the operation of their independent businesses including, without limiting the nature of the foregoing, how much or how little time they may devote to their businesses and shall be entitled to establish their own business goals, business hours, business methods, and Policies.

Ownership of Tools: The BM shall be responsible for the ownership and acquisition of any business tools, equipment, assets, and expenses, and all business goods, services, and intangibles that the BM, in his/her discretion, believes necessary for the operation of its independent business including, without limiting the generality of the foregoing, the location and appointment of his/her business office, business cards, letterhead, computer equipment, motor vehicle(s), and other tools and equipment (e.g., phone, office supplies, etc.) which he/she alone deems necessary for the operation of his/her business, all of which shall be established and/or acquired by the BM at his/her own expense. The BM shall also maintain such insurance, such as liability, fire, and theft insurance, during the term of this BM Agreement for the benefit of his/her business, in amounts as he/she deems appropriate, and at his/her own expense. Notwithstanding the foregoing, PurpleU reserves the right (in its sole discretion) to prohibit the use of tools, apps, websites, and services which it deems to be harmful, misleading, predatory or to constitute or promote illegal or unfair business practices.

Chance of Profit/Risk of Loss: PurpleU and the BM agree that all expenses incurred by the BM in the operation of his/her business shall be incurred on his/her own account and be his/her own responsibility. PurpleU and the BM also agree that the terms of the BM’s compensation are entirely set out in the PurpleU Compensation Plan, and accordingly, the chance of profit and the risk of loss inherent in the Compensation Plan, and inherent in the operation of the BM’s independent business, rests entirely with the BM, with no “expense reimbursement” or “minimum compensation” being offered or guaranteed by PurpleU whatsoever.

No Power to Bind: While a BM shall be entitled to inform others that he/she is a BM engaged by PurpleU in an independent status, he/she shall at no time represent himself/herself to be an employee of PurpleU, and shall clarify with others, where necessary, his/her status as an independent contractor of PurpleU. The BM has no authority (expressed or implied), to bind PurpleU to any obligation, and shall not be construed as purchasers of a franchise or a business opportunity.

No Creation of Employment, Agency, Partnership, Franchise or Joint Venture Relationship: The legal relationship between PurpleU and its BMs is not intended to create, and does not create an employer/employee relationship, agency, partnership, franchise, or joint venture relationship between PurpleU and the BM.

Treatment as Independent Contractor for Tax and Other Purposes: Accordingly, the BM will not be treated as an employee of PurpleU for state or federal tax purposes (including, but not limited to federal income tax withholding or reporting requirements, federal unemployment insurance, worker’s compensation and other like taxes).

ONE NAME PER AGREEMENT

PurpleU recognizes only one name per BM Agreement. A BM may utilize a support person in his/her business, but PurpleU will only allow one authorized person per Business Member Agreement. Further, PurpleU only permits one BM per married couple. A husband and wife may work together under a single BM Agreement, but only one BM Agreement per married couple is permitted. If this applies to you, you should determine in advance who will be listed as the BM for purposes of commission payments and communication with PurpleU staff who are only authorized to communicate with the individual listed on the BM Agreement about the specific account.

BUSINESS ENTITIES

The Company will accept Agreements from partnerships, LLCs, or corporations so long as such business entities are legally organized and recognized in the United States.

EXCLUSIVE TERRITORIES/SOLICITATION OF OVERSEAS BUSINESS

No franchise is granted and there are no exclusive territories for sales or sponsoring purposes. That means that you and your next-door neighbor can sell in the same area regardless of who was there first. You may only arrange for sale within the United States. You may not solicit business from outside the United States.

EXCLUSIVE PROMOTION OF PRODUCTS

You are an independent contractor, and the Company imposes no restrictions on any BMs’ participation or sales activity in other businesses. However, your promotion of other competitive businesses and products is prohibited at PurpleU sales events and to customers, you have acquired in your PurpleU business. You may not promote any competing direct-sales business (e.g., companies that offer skincare products as one of their offerings). Additionally, should you advance to a Diamond rank or above, active, or public participation in any other direct-selling venture is no longer permitted. Once you achieve the Diamond rank for the first time, you will have three months to wind down your active participation in other direct selling ventures. After the three-month transition period, the Diamond rank will no longer be permitted to actively sponsor for or market any other direct sales company. This restriction does not prohibit you from belonging to or purchasing products from such a direct sales company. Violation of this policy will result in ineligibility to receive Initial Order Bonus, Team Commission, Team Matching Bonus, and Leadership Bonus. Diamond rank business members will still be eligible to receive the Retail Commission and Initial Order Bonus. This policy is to ensure you have the time commitment available to actively support and train your team. Please review the Compensation Plan for a complete list of Recognition Ranks.

ETHICAL CONDUCT

As a BM, you agree to conduct your business with the highest standards of honesty and integrity. You agree to refrain from making negative, disparaging, untrue, or misleading comments about the Company, its owners, directors, officers, associates, other BMs, or any other direct-selling company or such company’s products. You also agree not to engage in any activities that may cause harm to the Company or any other BM.

LEGAL COMPLIANCE

All BMs shall comply with all local, state, and federal, statutes and regulations concerning the operations of their businesses. You are responsible for your own managerial decisions and expenditures, including estimating income taxes. We recommend that you keep track of all your business expenses and speak with your accountant about how your business expenses might affect your income tax return.

LICENSE

Some local and state governments might have ordinances that restrict the way you conduct your PurpleU business. Contact your local and state government officials to determine if any business licenses are required. Also, if you live in a subdivision or condominium, check with your association to determine if there are any limitations on conducting business activities in your home.

CONFIDENTIALITY

All lists of customers, your personal team, or other BMs are the proprietary property of the Company and constitute a business trade secret. PurpleU may make these lists available to you for the express purpose of supporting you and your personal team to further develop your PurpleU business. You may use these lists only in connection with your PurpleU business and for no other purpose. You must keep the lists confidential and must not make the lists available to third parties or to use for any other commercial purpose. You agree that any wrongful disclosure of the lists or the information on the lists will cause immediate and irreparable damage to the Company and that the Company may pursue all legal remedies available against you if you violate this provision. This provision will survive the termination of your Business Member Agreement.

NON-SOLICITATION

As an inducement to PurpleU to enter into this Agreement and in consideration of the mutual covenants contained herein, during the term of this Agreement and for a period of one year thereafter you shall not directly or indirectly, on your own behalf or on the behalf of any other person or entity, solicit, induce or hire or attempt to solicit, induce or hire any BM who sponsored you, anyone in your upline, and anyone who you personally sponsored to terminate or alter his/her business relationship with PurpleU. Additionally, for a period of one year after the termination of this Agreement, you will not own or operate a multilevel social-selling or direct-sales business that promotes or sells skincare and nutrition products.

TRANSFER ABILITY

Neither this Agreement nor your PurpleU business may be transferred or assigned by you or operated in partnership with any other person. PurpleU reserves the right to re-assign this Agreement at any time. On a case-by-case basis, PurpleU may allow a one-time transfer of your business to a legal entity owned by you.

NEW BM DEVELOPMENT

As a BM, you may sponsor other PurpleU BMs and build a team. Should you choose to enroll BMs, you are encouraged to provide adequate training and consistent communication to new BMs that you Sponsor, just as you would want to provide to you. A variety of tools exist to aid you in making your training simple and effective. These tools include the Compensation Plan and various online training materials and videos.

INCOME CLAIMS

The FTC and various state consumer protection agencies regulate claims regarding the amount of income that can be earned under programs such as the PurpleU Compensation Plan. To avoid compliance issues with these laws, you may not make income projections or disclose your own compensation when presenting the PurpleU Compensation Plan. Hypothetical income examples that are used to explain the operation of the Compensation Plan and that are based solely on mathematical projections may be made to prospective BMs, as long as it is made clear that the examples are hypothetical and not based on actual experience.

To ensure full compliance, PurpleU strictly prohibits BMs from making representations relating to compensation or lifestyle (hereafter “Earnings Representations”) under the Compensation Plan, whether to a prospective BM or otherwise. Without limiting the generality of this prohibition, and because BMs do not have the data necessary to comply with the legal requirements for making Earnings Representations, a BM, when presenting or discussing the Compensation Plan to a prospective BM, shall be strictly prohibited from, and shall not make or imply directly or indirectly, any verbal, physical, electronic or other claims that amount or could amount to Earnings Representations, and without limiting the generality of the foregoing, this prohibition shall include the making of income projections, improved lifestyle claims, hypothetical income examples or disclosures regarding a BM’s own business income (including the showing of checks, deposits, copies of checks, bank statements, tax records, or other similar demonstrative documents).

Furthermore, so that PurpleU may remain compliant (a) no representations relating to compensation under the Compensation Plan are made by participants in the compensation plan and (b) that any representations relating to compensation under the Compensation Plan that may be made, constitute or include fair, reasonable and timely disclosure of the information need to make the claims truthful and non-misleading, any BMs that has the reason to believe that this general prohibition against Earnings Representations is being contravened by themselves or any other person, SHALL HAVE THE POSITIVE OBLIGATION to inform, and SHALL INFORM PurpleU of the facts relevant to the contravention, such that PurpleU is capable of ensuring that any representations relating to compensation made under the Compensation Plan comply with federal, state and local regulations, or are otherwise corrected.

LIMITED RIGHT TO MAKE INCOME CLAIMS, WITH TIMELY DISCLOSURE

Without limiting the general prohibition against Earnings Representations, or the reporting obligations set out above, a BM shall have the following right(s): (a) To repeat to prospective BMs, any Earnings Representations found in official PurpleU literature or on the PurpleU website, provided immediately providing fair, reasonable, and timely disclosure of the following official PurpleU Statement of Typical Participant Earnings, substantially as follows:

STATEMENT OF TYPICAL PARTICIPANT EARNINGS

The primary source of income of a Typical Participant in the Compensation Plan (the “Plan”) of PurpleU USA, Inc. (“PurpleU”) is from compensation for the service of arranging for the sale of products. Personal earnings will vary. A participant in the plan is defined as an Independent Sales Representative who actively engages in the activities necessary to realize the benefits of the Plan (i.e. earning at least four monthly checks annually). Typical Participant means a Participant engaged in the Plan for at least one year. A Typical Participant in the Plan earns between [$200 and $900 annually].

Please note that these earnings are estimates and have been derived from hypothetical data related to the launch of PurpleU. These earnings estimates will be reviewed after 6 months of operation of the Compensation Plan and updated at that time with compensation received by typical participants in the Compensation Plan. After one year, this Statement of Typical Participant Earnings will be updated again, and then updated annually thereafter.

For greater certainty, the “Lower” and “Upper” Range information shall be provided by PurpleU on its website and in other published materials, from time to time, to properly reflect the earnings of a typical participant in the Compensation Plan, from time to time, and as otherwise required by law, and must be used by the BM in connection with the fulfillment of its obligations under this section. (b) To make hypothetical income examples to prospective BMs that are used to explain the operation of the Compensation Plan, and which are based solely on mathematical projections of the information set out in the Compensation Plan, provided that in using such hypothetical examples the BM also immediately provides fair, reasonable, and timely disclosure of the Statement of Typical Participant Earnings and makes clear to the prospective BM(s) that such prior income examples are hypothetical.

REMOTE SPONSORS

When sponsoring long-distance, Lead BMs are strongly encouraged to provide training support and recognition to their sponsored BMs. Using notes, handouts, video Zoom, Skype, and Facetime during team meetings are effective ways to include remote BMs in place of live, local training, and/or meeting attendance. The Lead BM is encouraged to:

• Meet Minimum Lead BM Support Requirements.
• Provide all training and support via phone, e-mail, or other effective communication methods or technologies.
• Arrange with a BM in his/her remote area to have the remote BM attend a training session, if available.

CROSS SPONSORING

Cross sponsoring is strictly prohibited. Cross sponsoring is defined as the sponsorship of an active BM or a terminated BM who has been active within the preceding three months within a different line of sponsorship. This includes the use of a spouse or relative’s name or assumed names to circumvent this policy. You may not demean, discredit, or defame other BMs to entice a BM to become part of your organization.

SPONSOR REASSIGNMENT

PurpleU will not honor requests from BMs to have another BM’s downline transferred to them. Nor will we make transfers if there is any concern that proactive solicitation of another BM’s downline has occurred. Corporate reserves the right to reject transfers for any reason to maintain a NO POACHING culture and environment.

To protect the rights of all BMs who work hard to sponsor and mentor others in the business, the Company prohibits the transfer of a BM from one Sponsor to another, except under the following conditions only:

• Improper Initial Assignment

At times, a new BM will sign-up as a BM through the PurpleU website, however, due to technical issues or other reasons, they are accidentally assigned to a sponsor they did not intend. In those cases, the BM will be reassigned to the sponsor they initially intended provided PurpleU support is notified within 7 days of the BM’s sign-up date.

• Inadequate Support

If a BM is dissatisfied with the minimum level of support received, he/she may file a request for Lead BM reassignment by contacting Corporate via cs@purpleu-us.com. PurpleU will then contact the Lead BM via phone or e-mail and give the Lead BM 30 days to release the downline or make amends with the downline so that the request is withdrawn by the downline via e-mail. If the request is not withdrawn, PurpleU will then independently assign downlines to another upline who meets PurpleU’s requirements. No special requests will be honored.

• Deceptive Sponsorship

In cases where a BM is assigned to a Lead BM in a deceptive manner or such a manner that it was not clear to the sponsored BM who his/her Lead BM would be, the sponsored BM may request to be transferred to a different Lead BM, with his/her team intact. The new Lead BM will be assigned by the Company. The request must be made by the sponsored BM directly to PurpleU Corporate by contacting them within 7 days of his/her start date. The Company will investigate each request on a case-by-case basis and reserves the right to reject or grant the transfer of sponsorship.

• Disruptive Relationships

In cases where a BM-Lead BM relationship is strained to the point where it is disrupting the business of those individuals and other BMs, the sponsored BM may request to be transferred to a different Lead BM, with his/her team intact. The new Lead BM will be assigned by the Company and special requests will not be accommodated. The request must be made by the sponsored BM directly to PurpleU Compliance Department. PurpleU will investigate each request on a case-by-case basis and reserves the right to reject or grant the transfer of sponsorship.

In the case where PurpleU provides a lead or places a new BMs on a Lead BM’s team and after signing up the new BM feels that he/she is not compatible or comfortable with the assigned Lead BM, the new BM may request reassignment. Corporate looks differently at the cases of assigned relationships versus organic sponsoring. The BM requesting a Lead BM change may not select a new upline. Corporate will again assign a new leader based on those qualified to receive leads.

LEADERSHIP SUPPORT PRACTICES

As a PurpleU Lead BM, you are expected to:

• Actively practice the PurpleU Values as described in this Agreement.
• Exemplify the cornerstone of PurpleU leadership by maintaining an active and consistent schedule of selling Socials.
• Actively engage in goal setting and mentoring new BMs.
• Offer training to the new BM by phone or in-person within 1 week of the new BM signing up to be a PurpleU BM. You should offer several reasonable time slots and be prepared for the training.
• Allow any new BM in your downline to attend a Social that you are leading or that someone else on your team is leading within 30 days of the new BM’s activation. Remote Sponsors who live 50 miles or more away from you should be supported by phone or video conference.
• Return phone calls or e-mails within three business days unless you have pre-notified your downline of vacation during which you will be unavailable.
• Attend planned meetings and training for which you did not call-in advance to reschedule or cancel.
• Communicate with your downline monthly by e-mail, phone, or in-person meetings to check in with the downline on business goals and progress.
• Disseminate information from Corporate to your downline in a timely manner.

Corporate reserves the right to transfer a Lead BM’s downline if the Lead BM fails to perform these practices.

NO PRODUCT PURCHASE REQUIRED

Except for the purchase of the business pack (and then only in states where a business pack purchase can be required), there is no financial or product purchase requirement to become a BM or to enter, maintain, or advance in the Compensation Plan. To familiarize new BMs with the Company’s products, sales techniques, sales aids, and other matters, and for the sole purpose of facilitating sales, BMs are required to purchase a business pack (except in states where the requirement of a business pack purchase is not allowed). The Company also requires that each BM access a personal website and a mobile app; and manage their PurpleU business through PurpleU, so the BM can have visibility into his/her performance and that of his/her team. Any products BMs choose to purchase, including the Business pack, and the Business Supplies may be returned for refund under the terms of the “Return Policy” below.

ANNUAL RENEWAL OF BM AGREEMENT

PurpleU has an annual replicated website fee of $49.99. To maintain a PurpleU BM status, a member must have a PurpleU business replicated site. A $49.99 subscription fee will be applied to each year on the business member’s join date.

Once a BM Agreement has been terminated, the BM must wait Three Months before reapplying, as noted in the policies on Deactivation.

TERMINATION OF BM AGREEMENT

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

RESIGNATION

You may voluntarily terminate the PurpleU BM Agreement at any time and for any reason by submitting a Self-Resignation Form (provided by the Company) to the Company. Self-Resignation Forms can be downloaded from the PurpleU-Hub. BMs who resign must also send copies of the letter to their upline BM and notify any downline BMs of their resignation.

CANCELLATION

Cancellation means a loss of BM status and all BM benefits including product discounts, Company mailings, eligibility for BM contests, events, and incentives (even those earned prior to cancellation), as well as the loss of all downline’s BMs, bonuses, and commissions. “The BM Agreement may be canceled:

• As a result of the BM’s resignation.
• At the death or retirement of the individual BM.
• Become inactive status (No sales, No purchase for six consecutive months)
• Immediately upon relocation and change of the BM’s permanent residence outside of The United States.

CORPORATE TERMINATION

The Company may terminate the BM Agreement with any BM at any time and for any reason by notifying the BM in writing of our election to terminate. The Company may immediately terminate this Agreement without notice in the event of the BM’s death, insolvency, assignment for the benefit of creditors, or misrepresentation in or breach of any provision of the Agreement, violations of policies as herein defined.

Corporate may also terminate the BM Agreement if there has been a breach of any term of these policies, the Compensation Plan, or the BM Agreement, by the BM. Upon termination, the BM will have thirty days from the date of termination to provide a written request to PurpleU via email at cs@purpleu-us.com for a refund of any pre-paid fees for months that have not yet passed. Upon receipt of such request the Company will refund any such pre-paid, but unused amounts, to BM within ten business days of such request. If BM fails to make such a refund request within the time specified above, any such pre-paid fees shall be forfeited to the Company. For purposes of this Agreement, a “breach” shall include, but not be limited to, any actions by the BM which, in the Company’s sole discretion, the Company believes:

• The BM discredits the Company’s name, goodwill, or products.
• Breaches any provision contained in this Agreement.
• In any way misrepresents the Company’s products or business opportunity.

The Company shall notify the BM by e-mail of Corporate Termination at the latest email address listed with the Company for the BM. If the BM Agreement was terminated by Corporate, the BM may not reapply.

EFFECTIVE OF TERMINATION

Terminations of the BM Agreement are effective the first day of the month following the date of termination of the BM Agreement by the BM or the Company or Deactivation. Upon termination of the BM Agreement for any reason, your personal group will roll up as per our policy on Roll-Ups. In addition, you will lose any gift certificates, credits, and or any other incentives (including any trip incentives) that you may have earned. You will receive legitimately earned commissions only for the last full payment period you were active prior to termination.

If you should choose to become a BM again, the Company may accept or reject your application for any reason at its sole discretion. If your application is accepted, you must start at the beginning Recognition Rank of BM.

EVENTS UPON TERMINATION OF THIS AGREEMENT

YOU WILL:

• Within five days of termination pay all amounts due and owing to PurpleU.
• No longer have the right to offer or arrange sales of PurpleU products or services and you must cease representing yourself as a PurpleU BM immediately.
• Be ineligible to receive any unaccrued compensation or benefits as a BM.

You will cease the use of PurpleU Intellectual Property and Confidential Information and will cease holding Socials, trade shows, presentations or otherwise displaying, offering for sale, or arranging for the sale of PurpleU products. If you offer for sale or arrange to sell PurpleU products in violation of the foregoing sentence, PurpleU will be entitled to recover from you $5,000 as liquidated damages without having to prove actual harm.

If requested by PurpleU, you will return all Confidential Information to PurpleU. You may return to PurpleU unsold PurpleU products purchased within thirty days of pursuant to the Return Policy below, provided that the products are in resalable condition, not discontinued, and are returned with shipping charges prepaid and insured for their full value during shipment, and PurpleU will reimburse you according to the Return policy set forth below. If you decide to return any unsold PurpleU Products, PurpleU reserves the right to offset any amounts returned to you against previously paid commissions or other rewards. The net refund will be issued within four weeks from receipt of the returned product.

RETURN POLICY

A BM may return any unopened or unused Business Packs, products, and marketing materials/business supplies that he/she personally purchased from the company within 30 days from the purchase date.

A BM Business Pack returned within 30 days of purchase date is eligible for a refund of up to 90% of the purchase price. The Business Pack must be returned in its entirety. The Business Pack must be unopened, and all items must be unused and in resalable condition to receive a refund. The Business Pack must be returned to the PurpleU via registered mail. A trackable and/or insured (insured for approximately $244-$655) shipping method should be used, as PurpleU will not be responsible for lost shipments. The original shipping and handling fees, if any, are not eligible for a refund.

PurpleU offers business supplies and promotional materials, as well as products, for your convenience. However, these items are not required to conduct business and may be purchased at your option. Nevertheless, business supplies and promotional materials may be returned to PurpleU. However, they must be returned within 30 days of the purchase date for a refund of up to 90% of the purchase price, provided that the business supplies and promotional materials are unopened, unused, and in a resalable condition. If you choose to return such business supplies and promotional materials, you are responsible for the cost of the return shipment and insurance to cover the shipment. All such returns should be shipped by a trackable means and should be insured for at least the retail value of the items being returned. Original shipping and handling fees are not eligible for a refund.

ROLL UP

There is a roll-up applied on Team Matching Bonus only at PurpleU’s Compensation Plan.

REACTIVATION POLICY

BMs may reactivate only when their BM Agreement was terminated because of their voluntary termination of the BM Agreement or for their failure to achieve 50 PSV during any rolling 12 months period. BMs who were terminated by Corporate may not reactivate at any time, except with the express consent of Corporate. Corporate reserves the right to deny a request for reactivation. A BM who wishes to reactivate must:

• Wait three months from the date of termination of the BM Agreement before reapplying.
• Sign up online by submitting a new BM Agreement.
• Purchase a new BM Business Pack.

Reactivation does not entitle a BM to take back her/his position and downline. Upon reactivation, the BM must restart at the Recognition Rank of BM and will have no downline.

DIAMOND RANK RESPONSIBILITIES

BMs who achieve the Diamond Rank. Rank may be asked to sign an Addendum to the BM Agreement. Please note that the Addendum will be provided to BMs for their review prior to the completion of Corporate’s standard month-end checks and processes that confirm all promotion levels. If it is determined that a BM did not achieve the Diamond Rank pay level in the preceding month, that BM will be contacted by Corporate and need not execute the Addendum. BMs must submit the signed form to Corporate within 15 days after the month of advancement. (For example, if you advance to the next level on March 28, you must submit the Addendum on or before April 15 to be paid as a Diamond Leadership Bonus in April). BMs who do not execute the Addendum at the time of advancement can choose to execute the Addendum at any time in the future, provided they allow 30 days advance notice. (For example, a BM who signs the agreement after the 15 days, on April 16, will not be paid at Diamond Leadership Bonus until the following month, May.) BMs can opt-out of Diamond‘s Addendum by sending an email to Corporate at any time. Please allow up to 30 days to process the request. BMs may only execute the Addendum once during a 12-month period. The purpose of the Addendum is to commit a BM’s with the Recognition Rank of Diamond or above to additional leadership requirements and expectations, among other things.

COMMISSION POLICY AND PAYOUT TIMELINES

BM commissions, bonuses, rewards, and ranks are based upon the PurpleU Compensation Plan which is incorporated into this Agreement by reference. Please review the Compensation Plan for complete details.

• Retail Profits are paid based on the Retail Commission Value (RCV) of the products sold. All other bonuses are based on the Personal Sales Volume (“PSV”) of the product.
• Commissions do not apply to the sale of BM-only items such as sales-aids and other materials that you can purchase to promote your business, but which is not itself a retail product. From time to time, the Company may offer limited-time non-retail products for sale to BMs that are non-commissionable.
• A Retail Commission will be paid weekly by 11:59 p.m. (MST) each Friday for your personal retail sales completed during the period from Sunday at 12:01 a.m. (MST) through Saturday at 11:59 p.m. (MST), i.e., the period ending five days before the commission is paid out. This weekly payment will be paid to BMs who have earned Retail Profits of at least $10 and will be paid via ACH or Pay Card/Digital Wallet to the account indicated by BM.
• All Initial Order Bonus, Sponsoring Bonus, Team Commission, Team Matching Bonus, Leadership Bonus, and Rank Advancement Bonus will be paid monthly on or before the 15th of the month as described below.
• End-of-Month Payout: All sales bonuses, except Retail Commissions, will be paid monthly. Your end-of-month payout will be deposited to the bank account designated by the BM via ACH, on or before the 15^thof the following month for U.S. BMs. If the 15^th falls on a weekend or holiday, the commissions will be paid on the next business day.
• From time to time, the Company will put items on sale at a promotional discount. These special sale items are commissionable on the sale price of the item and not the regular retail price.
• If you have any issues or discrepancies with your commission report, you must report it by the end of the calendar month following the month for which the commission was issued. For example, if you have a concern about September’s commission, which you would have received by October 15th, you must report that issue to Corporate by the end of October of that same year. Issues reported after that timeline will not be researched or adjusted. Send your requests via email to cs@purpleu-us.com.
• Online earnings reports list the amount of the commissionable product your downline has ordered each month. If overpayments are made, amounts will be deducted from future payouts.
• If you fail to renew your BM Agreement due to inactivity or failure to meet minimum sales requirements, or if your BM Agreement is terminated, you will receive bonuses only for the last full pay period prior to the termination (less any amounts withheld during an investigation preceding an involuntary termination).
• A BM is a self-employed, independent contractor of PurpleU. As the BM is not an employee of PurpleU, the Company will not withhold any taxes from the BM’s commission payments. See the “Taxes” section below for other considerations you should consider on taxes that will result from your commissions.

SPONSORSHIP FEE PROHIBITED

To ensure compliance with state and federal regulations, PurpleU strictly prohibits BMs from giving “consideration for the right to receive compensation by reason of the sponsorship into the plan of another participant in the plan who gives consideration for the same right”. While BMs have the right to sponsor other BMs, the Company does not pay any bonuses, commissions, or other remuneration, or allow BMs to make similar payments, for mere sponsoring/enrolling.

A BM understands that there is only one revenue-generating event for her/him, namely the service of arranging for the sale of PurpleU products to retail customers, and acknowledge that all commissions and other remuneration (including overrides, bonuses, incentives, and awards) shall be paid solely as a consequence of a BM’s supply of the services of arranging for same and any voluntary training, motivation, and marketing efforts related to same shall be construed as incidental thereto.

A BM’s remuneration will be paid solely because of a supply of the service of arranging for the sale of PurpleU products to retail customers. No remuneration (including overrides, bonuses, incentives, and awards) shall be paid to anyone for the mere sponsorship or enrollment of any other BM, or for any other reason. A BM is strictly prohibited from making or representing that compensation is payable for anything other than arranging for the sale of goods to retail customers.

ACCOUNT HOLDS

PurpleU may, at its option, place a BM’s account on hold for money owed to PurpleU or for violation of other policies listed in these Policies. If an account is placed on hold, the BM may be prohibited from placing orders, receiving all or a portion of commissions, registering for Conferences or other corporate events, or obtaining other BM benefits until the account is current and/or all Policy violations are corrected; or, if the BM is in a re-qualification period, until the re-qualification period has expired.

SUSPENSION OF CONTRACTUAL OBLIGATIONS

In certain circumstances, PurpleU may agree to allow, as a matter of the contract, a BM to suspend their contractual obligations to the Company, on the grounds of maternity or other personal leave issues, provided the total time during which the contractual obligations remain suspended does not exceed three (3) months in any one twelve-month period. BMs may elect to take a leave of absence once every twelve months for personal reasons including without limitation, maternity, death in the family, etc. The twelve-month period for testing to determine eligibility for suspending the BM Agreement begins at the end of the last month of any prior leave taken if any. To request suspension of their contractual obligations, BMs can notify PurpleU by e-mailing cs@purpleu-us.com.

During the suspension period, the BM is not required to meet the PSV requirements to stay active or to maintain a team, provided that BM is able to achieve their Recognition Rank (the highest Paid-As rank the BM has achieved within the previous three-month period) by achieving the commensurate level of Diamond. 

BM will have access to P-Hub, mobile app, and her/his personal website during the suspension period. The BM will be able to make and receive retail orders and be paid on Retail Profit commissions only. PurpleU reserves the right to review requests for suspension on a case-by-case basis to ensure that the suspension of contractual obligations policy is not abused.

CORPORATE MARKETING, LEADS, AND ASSIGNMENTS

PurpleU makes a considerable investment in building our general brand and driving awareness that benefits all our BMs’ businesses. Our corporate marketing and public relations efforts are intended to attract new potential customers and BMs, which ultimately benefits every PurpleU BM.

OUR PHILOSOPHY

• For building a great social selling business there is no substitute for leveraging YOUR social network. Corporate leads should not be expected and are not a way to build a personal business. We do general marketing like press and events because we know that you can then show this media coverage to your network of people and build excitement.
• Our lead and assignment program has been designed to provide customers with the best possible local experience. We believe a customer-centric approach will build the best business for all BMs. Corporate will allocate Leads and Assignments with the utmost integrity to BMs whom we deem to be exemplary members of the PurpleU team and who we believe will provide the best support and leadership to our customers and new BMs.
• A “Lead” means a request made by a customer for more information about PurpleU, interest in hosting a Social, or learning more about the opportunity to become a BM.
• An “Assignment” means a new BM who has signed the BM Agreement but has not indicated a Lead BM.
• We do not make exceptions to this program, and we are under no obligation to provide history or explanations for our Lead and Assignment allocations.

The corporate marketing and public relations efforts will primarily direct potential customers/ BMs to our official corporate website, www.PurpleU-us.com. While on the official corporate website, the potential customer or BM may learn more about products and BM opportunities. The following are examples of qualifications that PurpleU may require for Leads and Assignments. In general, most, but not all, Leads and Assignments will be given to a BM who:

• Embodies the core values of PurpleU and is an exemplary member of the PurpleU community.
• Has earned the pay rank of Bronze Director or above in the previous month for leads interested in learning more about the BM opportunity.
• Has qualified in the previous month for leads interested in hosting a Social.
• Have sponsored one new BM and performed the leadership support practices.

PurpleU has the right to transfer any BM who was a Corporate Lead to another team if Corporate determines the BM is receiving inadequate coaching as per the leadership support practices.

The Company encourages a BM to advertise his/her website on online blogs, social media sites, and other commercial websites as much as possible to drive online sales. However, please note that we have specific rules around online advertising that include:

• Compliance with our advertising and online policies. When you market your business, always refer to yourself as a PurpleU BM to eliminate confusion between your personal website and the official PurpleU website. You may never sell your products on any site other than PurpleU (this includes Amazon, eBay, Etsy, or other auction sites).
• You may not create search engine marketing campaigns on PurpleU’s key terms (this includes Google AdWords) as it directly competes with PurpleU’s official website and any advertising placements we are running.
• On Facebook, please keep your paid advertising local and remain within 100 miles of your home.
• You may not offer blanket discounts in your ad as per the policy on Blanket Discounts.

TAXES

Income Tax

As a self-employed professional, it is up to you to maintain complete records regarding your income and expenses. This will greatly assist you when calculating your taxes every year. There are many tax benefits that can be available to self-employed individuals, and everyone should consult their own tax advisors concerning how the benefits may apply to each individual case.

The IRS requires the Company to send a Form 1099 to every BM who earns $600 or more during the previous calendar year. By the last day of January each year, PurpleU will issue each BM a Form 1099 for the previous calendar year.

BMs who do not receive commissions of at least $600 from PurpleU will not receive a Form 1099 but are still obligated by law to report their income to the IRS and to pay all related taxes.

Because you are self-employed, you may be able to deduct certain business expenses to offset the income you earn. Because of these complexities, each BM is encouraged to set aside funds from each commission payment for purposes of paying taxes on BM’s income generated through PurpleU. PurpleU further recommends that each BM work with an accountant to best understand your income tax obligations based upon your personal situation. Every person, state, and city are a little different so getting good advice is advised.

As a PurpleU BM, you are an independent contractor to PurpleU, not an employee. Because of this distinction, you are self-employed for income tax purposes. As a self-employed individual, you may have significant advantages in deducting certain business expenses. Examples include home office deductions, business use of your auto, home computer usage, and travel and entertainment expenses. We strongly recommend that you talk with your own tax advisor to learn how the tax laws apply to your PurpleU business.

Throughout the year, keep all your receipts for income and expenses in one place.  Designate a folder for paperwork and do not forget to write down mileage that you have traveled in order to conduct your PurpleU business. This will make it much easier for you to calculate your tax return at the end of the year.

Sales Tax

You will not be treated as an employee for purposes of sales tax. If we are required to charge any such taxes in respect of our supply of goods or services to the BMs or to our direct retail customers, we will collect and remit these taxes in respect of our sales as appropriate. However, we are not responsible for collecting or remitting any sales taxes on your behalf. You are responsible for collecting and remitting all applicable local, state, and federal sales taxes imposed on your business, although, as set out below, we may at our discretion enter into sales tax collection agreements with the federal and state taxing authorities.

COLLECTION AGREEMENTS/ARRANGEMENTS

Notwithstanding the foregoing, we reserve the right to enter into sales tax collection agreements with the federal and state taxing authorities which could relieve you of the burdens of charging, collecting, or remitting sales taxes. Where applicable, we will notify you of the implementation of such agreements and will charge and collect sales taxes accordingly.

EXEMPT SALES

If you are offering or arranging for the sale of products to a tax-exempt organization, we can remove the tax from the order prior to submission. The organization will need to provide satisfactory evidence of its entitlement to the tax exemption. For more information about sales to tax-exempt organizations, please contact PurpleU.

INSURANCE

If you have a vendor event at a facility, you may be required to provide proof of general liability insurance. Consider speaking with your insurance agent about whether you need coverage for a small and/or home-based business. If you are using a vehicle for your business, you can also discuss auto insurance.

ADVERTISING, PRESS, TRADEMARK, AND PUBLIC IMAGE PROTECTION

Repackaging or Relabeling

Because repackaging could violate laws or result in civil liability, all products must be sold in their original packaging only and may not be altered.

TRAINING MATERIALS

BMs may not produce, distribute, or sell webinars, DVDs, CDs, or other training materials bearing the Company brand and name. Further, BMs are not permitted to offer or collect money for any live or pre-recorded training whether in person or virtual. If a BM chooses to enter the business of offering sales training to PurpleU BMs, he/she must resign from PurpleU or PurpleU may terminate her/him. If you have suggestions for training material, please submit your ideas to Corporate by e-mailing cs@purpleu-us.com.

LIABILITY

• PurpleU cannot guarantee or in any way be responsible for PurpleU products purchased from sources other than PurpleU.
• PurpleU cannot guarantee or in any way be responsible for products that are not officially part of the PurpleU product line.
• PurpleU cannot guarantee or in any way be responsible for products that have been imprinted with the PurpleU trademark by sources other than PurpleU.
• PurpleU cannot guarantee or in any way be responsible for products that are used or applied in a manner inconsistent with the stated intent or instructions of PurpleU.
• PurpleU cannot guarantee how a customer’s skin will react to its products. If you or a customer notice that the PurpleU products are causing irritation, please cease use of the product and wait three weeks before using the product again. If the irritation continues, please contact PurpleU and discontinue the use of the products.

 TRADEMARKS

• BMs’ duplication of PurpleU trademarks or service marks is prohibited. Examples of PurpleU trademarks include, but are not limited to, PurpleU, or the PurpleU logo. Display or sales of PurpleU product in retail or service establishments of any kind are inconsistent with the purpose for which the trademarks are registered
• When reproducing the PurpleU logo, it must not be altered in any manner or form.

PurpleU BMs may not duplicate the PurpleU trademark for private use or for the intention of offering or arranging the sale of non-PurpleU products to others. PurpleU BMs are however permitted to use the PurpleU BM marks and logos made available to BMs in the P-Hub according to the PurpleU branding guidelines.

ADVERTISING AND PRESS

You may advertise in local publications and online, but must make sure your advertisement is accurate, professional, and not misleading in any way. You must always list your PurpleU website address and use only the official PurpleU BM logos and images. If you list contact information, you must identify yourself as an Independent BM so that there will be no confusion that you represent PurpleU or Corporate. You may advertise sponsoring opportunity events, socials, or any other PurpleU events you choose. You may not run advertisements that feature specific products for sale or blanket promotions (please review our policy on blanket discounts).

PRESS CONTACTS AND LEADS

Corporate is the primary contact with all press and media. All BMs wishing to contact any members of the media for any reason should contact the Corporate Marketing Department first. Press includes any media with a wide audience including network television, newspapers with over 100,000 circulations, and all Internet media such as blogs, syndicated columns, broadcast shows, and wire services where the potential audience is more than 5,000 individuals. Please direct any questions and media inquiries to cs@purpleu-us.com.

MEDIA PROMOTIONS

Corporate initiates all television, cable TV, radio, Internet, newspaper, newsletter and magazine interviews, features, and paid advertisements. PurpleU BMs may not initiate, authorize, or implement national or regional media publicity. BMs, however, are encouraged to initiate/implement local media interviews.

All interviews with the media must be handled through the Company Communications team. Whether the media outlet pursues you or vice versa, you must inform the Company before the interview is conducted (no exceptions). Contact Corporate Marketing Department immediately and refer the reporter/writer to our public website for contact information. If you are approached by a member of the national media about contributing to a story, you must refer her or him to the Company immediately. Contact cs@purpleu-us.com.

As with advertising, you may only personally approach local media when submitting a press release or story pitch. Your copy must be approved through PurpleU prior to sending it. You may submit your copy for approval to cs@purpleu-us.com. The Company requires BMs to list the PurpleU web address in addition to any personal contact information. The Company must approve proposals for regional or national media promotions in advance. Look online in P-Hub for high-resolution logos and advertising guidelines.

PHONE & ONLINE LISTING POLICY

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

Name, Recognition Rank with PurpleU

Business Member

Personal Website URL

Social Media URLs

Email

Address

Phone Number

CHECKING/CHARGE ACCOUNTS

PurpleU BMs may not use the trademark or trade name PurpleU on bank accounts, credit applications with local suppliers, or other business forms. Checking accounts can simply be designated as “Business Accounts.” or, if you need to list a business on your checking account, credit application, or other forms, use your name and “PurpleU Independent BM.” The intent of this is to avoid any implication that a BM business is the Corporate Office.

ONLINE COMPLIANCE

PurpleU builds our brand for the general benefit of all BMs. Thus, our trademarked brand name cannot be used to drive traffic away from our corporate site. Our corporate site allocates Leads to all qualified and active BMs. Infractions may result in the immediate termination of a BM account.

You may not represent yourself in any way online that detracts from the PurpleU brand. You may only have a personal website through PurpleU. In compliance with laws and Direct Selling Association policy, all Independent BM marketing both in print and online must clearly appear as though it is coming from an independent representative of the Company and not lead the consumer to think they may be interacting with the corporate office. Furthermore, any ad in which the trademarked PurpleU name or logo is used must be approved by the corporate office. Corporate-approved advertisements will be made available online in the P-Hub.

MARKETING AND NAMING OF PERSONAL WEBSITES

Using a generic extension like shop, beauty, skincare, cities, or major regions, etc., is not allowed as it appears to the end-user that this is a corporate site URL. Your extension must relate to your name. You cannot use any name like www.PurpleU-us.com/skincare; www.PurpleU-us.com/shop; or www.PurpleU-us.com/houston 

Restricted Use of PurpleU Trademarked Name

The trademarked PurpleU name and any of its slogans and taglines cannot be used in any Google AdWords or other search engine marketing campaigns of sponsored links. This includes the use of your Personal Website since this contains PurpleUProducts.com. All web advertisements must clearly contain the descriptor of Independent BM in both the title and description field.

Use of PurpleU in URLs

You may not use PurpleU, PurpleUProducts, or any derivative in a registered URL with any extension. This is in violation of our trademarked name and can result in the termination of a BM account. For example, you cannot register or use any URL like www.myPurpleUProducts.com or www.PurpleUProducts.tv, www.PurpleUSkinCare.com, etc.

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

You may not use PurpleU, PurpleUProducts, or any derivative of that in any e-mail addresses or social media names. For example, you may not use anything like  PurpleUProducts@gmail.com or jenniferPurpleU@gmail.com or PurpleU Arizona for a Facebook group page. If you do this, you may be required to change your email address or social media name before you are eligible to receive commissions or overrides.

Use of PurpleU Confidential Information – Names, Addresses, Emails

As a BM you may be given access to certain information about your downline including names, email addresses, addresses, phone numbers, etc. All this information is confidential and should not be used for any purpose other than PurpleU business. You are restricted from using this information to send invitations to or information about other direct sales companies, school fundraisers, personal issues, or the like. If you misuse this information, your BM Agreement may be terminated, and/or your access to such information may be removed.

Social Networking Pages on Facebook and More

You cannot create a business page, group, or personal page on Facebook or any other social networking site that appears to be the corporate office. However, you may create a site that includes the term “Independent BM for PurpleU” in the name. You cannot use the word “official” or anything similar. You cannot create an alias for any sites like Twitter or others that use any permutation of the PurpleU name. The social network page cannot make mention of “PurpleU” without being qualified by “Independent BM for PurpleU” or “PurpleU Independent BM.”

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

BMs may not use the PurpleU Official Facebook Page or BM Facebook Group to solicit business, drive people to your Personal Website, or sign-up team members. An additional list of rules for the BM Facebook Group can be found on the BM Facebook Group Home Page.

Sales Through Auction Sites or Other Internet Sites

PurpleU BMs may not sell PurpleU products on any website other than his/her personal PurpleU website (including sites such as e-bay, Craiglist, Etsy, Amazon, or deal sites). PurpleU BMs may not display product images on other websites with the intent to sell.

You may NOT offer or arrange sales of Company products (including business supplies) through any online auction service or any other website. Nor may you advertise your business or the business opportunity through online auction services. We have a no-tolerance policy on Internet sales and any infractions may result in immediate termination.

Marketing Through Personal Blogs and Other Sites

If you maintain a blog, email, newsletter, or website outside of the Personal Website that PurpleU makes available to its BMs, you may not market, sell, or promote any other products or direct sales companies alongside PurpleU products. Doing so may result in your suspension or termination of the BM Agreement.

Third-Party Websites that Refer Leads to PurpleU

What is an affiliate program?

An affiliate program is a marketing practice in which PurpleU pays certain third-party websites for each new customer or BM they drive to the PurpleUProducts.com websites through the affiliate’s own marketing efforts. Our primary goal for our affiliate program is to acquire new customers so that we can direct business to our Independent BMs.

Can BMs become affiliates?

No, BMs cannot be affiliates. Instead, BMs earn commissions for sales of products under the BM Compensation Plan. So, even if we pay an affiliate commission on an order to an outside third-party website, the new customer is referred to a BM who can offer and arrange sales of products to the new customer and in turn will receive a commission on the sale of the product. If you have questions about the PurpleU affiliate program, contact us at cs@purpleu-us.com.

Corporate Sponsored Co-Branded Promotions or Giveaways

PurpleU reserves the right to partner with other brands or websites to create occasional co-branded promotions or giveaways. The purpose of these promotions is to gain awareness among (and access to) a new set of consumers who may not otherwise know about PurpleU. Our primary goal is to acquire new customers so that we can direct business to our Independent BMs.

In addition, partnering with well-known and highly-regarded brands promotes PurpleU’s beauty authority and raises overall brand awareness – helping open doors for our BMs’ own personal businesses.

Please note as a reminder to our BMs – to enhance the end-user experience, we request that BMs do not use these Corporate-sponsored promotions as a way to direct traffic to their personal websites. (For instance, if there is a contest where a website asks users to submit comments related to the promotion, please do not use the comments to promote your personal website.) As you can imagine, this activity does not support the brand awareness goal and can cause confusion among people new to the brand. All leads acquired from this promotion will be distributed through our normal lead referral program.

PURCHASE AND SALE OF PRODUCTS

PurpleU is a direct-to-consumer business, and a BM’s success with customers depends on personal relationships. Through direct sales, the consumer may try before buying and receive proper individual instruction in product usage, both before and after the sale. Therefore, PurpleU’s policies regarding sales are intended to steer BMs away from the pursuit of the one-time-only, impulse sale, toward long-term, relationship-based sales. That is why PurpleU BMs are encouraged to conduct personalized Socials for individual consumers or groups.

BLANKET DISCOUNTS

You may not offer your BM discount to the public at large, including friends and family.  This prohibition does not apply to sales pursuant to any Fundraising programs that the Company may have in place at any given time. Your personal discount is for personal purchases only. You may, however, buy gifts for others with your discount.

You are prohibited from offering a blanket discount at Socials, through your website, or other marketing channels, including social media. This includes “25% off everything at my Social” or places an “online order with me and I will rebate you 15%.” Any other permutation of an offer that serves to undercut the retail price of PurpleU is restricted.

You may however offer specific, time-limited, occasional incentives such as “book a Social tonight and get $25 off your order,” or, “spend over $100 and receive free shipping,” so long as your promotions (including free shipping):

• Are offered to a limited group of customers (members of a club, a specific group of individuals, not, for example, an open invitation to anyone who can view your Facebook profile).
• Run for no more than 3 days.
• Occur no more than one time per quarter.

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

Any promotional discount that contributes to a BM’s minimum RCV or PSV requirements for earning overrides or his/her volume rebate will be grounds for termination of his/her BM Agreement with the Company by Corporate. We expect our BMs to use their conservative discretion when interpreting the terms of this policy.

SOCIALS

At Socials, you will truthfully represent the Company, yourself, and the products. You may not use any misleading, deceptive, or unfair sales practices. Explanation and demonstration of products offered will be accurate and complete, including but not limited to, price, terms of payment, refund rights, guarantees, and after-sales service and delivery. Personal, telephone, text, or messenger contact will be made in a reasonable manner and during reasonable hours to avoid intrusiveness. Immediately discontinue a sales presentation upon request of the consumer. Also, refrain from using comparisons that are likely to mislead, and which are incompatible with the principles of fair competition.

BONUS BUYING

The success of the Company depends on retail sales to the ultimate consumer. It is possible to conduct a healthy business with no product inventory other than your samples. While the Company recognizes that you may wish to purchase certain products for your own use, or in some cases, for “instant delivery” to customers in need of last-minute gifts, it strictly prohibits the purchase of products in unreasonable amounts and prohibits the purchase of products only or primarily to qualify for compensation levels or incentive programs. This is one of the unethical practices that we refer to as “Bonus Buying” and is strictly prohibited. Bonus buying may also result in the immediate termination of a BM Agreement.

Bonus Buying includes:

• The sponsorship of individuals without their knowledge and/or execution of a BM Agreement on behalf of others without their knowledge.
• The fraudulent sponsorship of a BM.
• The sponsorship or attempted sponsorship of nonexistent persons as BMs (“phantoms”).
• The use of a credit card by or on behalf of a BM when the BM is not the account holder of such a credit card.
• Subsidizing the entire or partial cost of a customer purchase or New BM Business Pack purchase that counts towards your volume or adds a BM to your team. This includes offering a blanket discount or rebate on the purchase of goods.
• The purchase of the product to qualify for contests, bonuses, promotions, RCV or PSV requirements for commissions or paid-as rank
• Maintaining excessive inventory. BMs may not inventory load, encourage others to inventory load or represent that there is an obligation to purchase products, literature, or other sales aids except for the Business Pack, nor shall they represent those overrides, bonuses or other earnings may be obtained solely from the purchase of products rather than the sale of products. Inventory is not a component of our business and should not be carried beyond the month in which it is intended to be sold.

CUSTOMER DELIVERY

All customer orders given directly to a BM must be submitted and closed within the PurpleU system within five days of the customer placing the order. If a customer order is shipped directly to a BM, the BM must deliver the orders to the customers within five business days of receipt. Any violation of this provision may result in immediate termination of the BM Agreement by PurpleU.

THIRD-PARTY CONSUMERS

BMs who cultivate business contacts must remember that the business can purchase PurpleU products as gifts for employees or clients, but there may not be a resale value attached to the products. BMs cannot become a “vendor” to another business. BMs who offer or arrange the sale of PurpleU products to a business for gifts must include a personal letter with each gift that provides information about how the end-user can receive personal service from the BM. Large-scale sales of PurpleU products to regional or national companies are prohibited since they do not lend themselves to the development of personal relationships and personal service that PurpleU is based upon.

CUSTOMER REFUND AND RETURNS

You must comply with the Return Policy and procedures currently listed on the PurpleU website at www.PurpleU-us.com.

CUSTOMER ORDER FORMS AND SALES RECEIPTS

All BMs making person-to-person sales to customers (including any sales subject to state direct selling requirements) shall ensure that the customer is provided with the then-current copy of the PurpleU Sales Order Form, properly completed, and signed by both the BM and the customer. The Sales Order Form sets out, among other things, the Buyer’s Cancellation Right afforded to the customer under state law. BMs must ensure that all information fields in the Sales Order Form are completed, including the following:

• The date of the transaction.
• Name and address of the selling BM
• The signatures of the selling BM and the customer, and the location where the Form was signed.

In addition, the BM shall orally inform the customer of his or her cancellation rights. BM Order forms are available for download via P-Hub.

BMs are required to keep a copy of each Sales Order Form for their own records and shall be required to retain the same for a period of at least seven (7) years.

Where a customer places an order through a BM’s personal website, the customer will be required to positively accept the sales contract during the order process and will thereafter be provided with an Electronic Receipt providing printable evidence of the sales contract, and otherwise providing disclosure as required by state law. BMs will be provided with a copy of each Electronic Receipt for their own records and shall be required to retain the same for a period of at least seven (7) years.

CUSTOMER CANCELLATION RIGHTS

Consumer protection laws in various states generally require a mandatory 10 day cooling off/cancellation period for sales of products or services and effectively require that every purchaser be given the unqualified right to cancel the direct sale contract, within 10 days of purchase. This right is set out as part of the PurpleU Order Forms. After shipment is made no cancelation is allowed instead request for a return and follow the return policy.

A BM is required by law to tell her/his customers about their right to cancel orders within ten business days. If a customer cancels an order within the applicable cancellation period, a BM must promptly refund the customer’s money (if any products the customer received are returned to the BM in substantially the same condition). If a customer cancels an order that the BM has already submitted to the Company, please contact Support at cs@purpleu-us.com.

TERRITORY RESTRICTIONS

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

INTERNATIONAL SALES

Due to complex legal and tax considerations involving international sales, no sales or sponsorship efforts may be made outside, unless you have received written approval from Corporate.

OUT OF STOCK PRODUCTS ITEMS

The Company will quickly ship all products currently in stock. Any out-of-stock items (unless discontinued) may be placed on backorder and will be distributed upon Company receipt of additional inventory. A BM will be charged and granted commissions on future ship items once the order is submitted. Items designated for the future ship may be canceled on a BM’s request and a credit will be made to either the BM or customer card based on the original payment method. Commissions will be adjusted accordingly. If the item designated for the future ship cannot be filled, the Company will cancel the order and adjust commissions accordingly. The Company has the right to offset such amounts against the future commission and other compensation paid or owed to the BM who received commissions for subsequently canceled orders.

RETAIL OUTLETS

We do not allow BMs to set up a permanent retail display and sell PurpleU products in a retail environment. They are intended to be sold at a Social. A retail outlet includes a kiosk in a mall, boutique, grocery stores, flea markets, etc.

You may conduct a Social at the same retail location (such as a restaurant) no more than once a month.

NON-RETAIL BUSINESSES

BMs may leave a flyer in non-retail establishments, such as doctors’ offices, provided the intent is to attract participants to a Social, not to sell. Restaurants are not retail establishments and you may periodically conduct Socials or meetings in a restaurant.

MAIL ORDER

PurpleU BMs may not advertise, promote, sell, or sponsor through other company catalogs.

BM-To-BM SALES POLICY

BMs may make PurpleU products available to other BMs on a cost-recovery basis. For example, when a BM has an item in his/her inventory and does not have time to receive an order from PurpleU, it is acceptable for one BM to sell the PurpleU item to another at the BM purchase price. No adjustments of volume or commissions will be made by Corporate. Violation of this policy will result in the termination of your BM Agreement with the Company.

RENTAL SPACE

BMs may rent space for in-person Socials, however, to prevent the appearance of such a space as being a retail establishment, BMs may not store the product in the location. The product must be stored in BM’s home. Permanent signage or telephone rental locations are prohibited.

INTERNATIONAL DISTRIBUTION

PurpleU BMs may not conduct business outside of the United States. PurpleU does not yet offer BMs the opportunity to enroll BMs outside the United States. If you are interested in sponsoring BMs outside of the United States, contact cs@purpleu-us.com for more information when PurpleU expects to expand its enrollment internationally.

EVENTS

Best Practices – Opportunity Events

The purpose of a Company-sponsored opportunity event is for guests to come and have fun while feeling welcomed and comfortable to explore the business and gather more information about becoming a BM. It is also a great event for BMs to attend along with their guests or to come along and learn how to talk to others about our opportunity. We want the atmosphere to be light and low-pressure, but informative and helpful.

As we grow in popularity, there is a chance that some guests may arrive at our opportunity event who are “unattached” to an existing BM. There is also a chance that a guest was informed of our event by a fellow BM that could not be in attendance. To help reduce confusion, we ask every guest to fill out a short information card upon arrival. This card is then used to figure out where, and with whom, most guests belong.

In the case of an “unattached” guest, here is the procedure that should be followed:

• A list of all BMs in attendance at the opportunity event will be kept
• “Unattached” guests who end up becoming BMs because of our opportunity event will be assigned using the Corporate Leads system.

Please remember that this situation is rare, and you should not attend an opportunity event in the hopes of sponsoring someone new (unless you have invited a guest of course!). Please refrain from handing out your personal business cards to any “unattached” guests in the hopes of sponsoring and instead, answer any questions they may have in a helpful way. In the end, everyone benefits, and if not personally at this event, then perhaps down the road.

BEST PRACTICES – TRAINING EVENTS

Corporate will not be responsible for lost or stolen inventory if a BM brings his/her own inventory to a Training event. Corporate recommends that all inventory be locked up during break periods.

TEMPORARY SALES EVENTS

Public events can be opportunities to receive exposure for your PurpleU business. You can find people interested in hosting a Social, purchasing the product, or becoming a BM. However, it is important to consider the cost vs. return. BMs may promote their business (offering or arranging the sale of PurpleU products and sponsoring) at exhibits and trade shows, in accordance with the following:

• The registration for the event must be as a PurpleU BM.
• The first BM to register for space with the event sponsor has the right to conduct that event. If a second BM would also like to participate, he/she must contact the first registrant and obtain his/her permission. If two BMs are registered without prior knowledge, it is up to the second BM to withdraw from the event if the first registered BM does not want double participation. When registering for events, it is a good business practice to check cancellation policies and to proactively check with the sponsor to ensure another PurpleU BM is not already registered.
• The booth must always be staffed and must not be shared by another business.
• An event held in the common area of a shopping mall is permissible.

Please note that Expos, Trade Shows, and Booth Events are not considered a core part of the PurpleU business and Corporate does not specifically recommend participation in these events, nor do we endorse any specific event. Furthermore, as an Independent BM, you are responsible for your decision to host or co-host a booth at an Expo, Trade Show, or Booth Event. The business agreements made between PurpleU BMs to host or co-host an event are the proprietary responsibility of the BMs and the event planners. We strongly advise every BM to evaluate every business decision thoroughly before proceeding with the understanding that Corporate is not responsible for the BM’s participation or subsequent results.

Participation in any one specific Temporary Sales Event shall be limited to two weeks in a calendar year. The goal of PurpleU in establishing this policy for trade shows, expos, and craft fairs is to promote the professional image of PurpleU and all BMs and provide an atmosphere of mutual respect and ethical cooperation. You are encouraged to take creative approaches in your selling. However, your primary approach should always be selling through hosting Socials (whether online or in-person). Before agreeing to participate in any other type of event, you should be able to answer “yes” to the following questions:

• Is this event fair to all parties involved?
• Is this legal and ethical?
• Will this generate new bookings or future business?
• Will this approach provide the best environment for a successful event for the host?

If a Temporary Sales Event (such as a craft fair or holiday bazaar) a) is set up inside a retail environment (such as a shopping center or base exchange); b) occurs more often than every six weeks in its entirety, and/or c) occurs for twenty-five (25) consecutive days or more, you may set up a display about your independent sales business for the event but you may NOT have product available for cash and carry sales. An established retail environment is defined as a location in which permanent retail activities take place, such as inside a shopping center, inside or adjacent to a base exchange, or inside or adjacent to a permanent swap meet. Shopping center kiosks, base exchanges, or permanent swap meets are not approved locations for temporary sales forums, because they take place within an established retail environment.

If you have any questions about whether to participate in an event, please contact Support.

When you register to participate in an event, the event sponsor may ask you for your sales tax registration or inform you that you must post a copy of your Seller’s Permit at your booth. Regarding charging and collection of sales taxes, please refer to the “Sales Tax” section on page 27 for details. If you are required to provide sales tax registration information to the event organizer, please email cs@purpleu-us.com with the name and contact information for the event and we can provide you our sales tax information. You will likely need to obtain an insurance rider for the event through your business insurance agent.

ASSISTANCE FOR HEARING IMPAIRED AT CORPORATE EVENTS

While Corporate holds several events throughout the year, the Company is not required to provide accommodations for hearing impaired BMs. BMs are independent and not company employees, and therefore should be prepared to make their own accommodations. If a BM will arrange accommodations at an event, please contact cs@purpleu-us.com to coordinate at least four weeks in advance of the event.

WEBSITE DOWNTIME

You acknowledge that the PurpleU website may be subject to temporary shutdowns from time to time for maintenance and/or due to causes beyond the operating party’s reasonable control and that neither party shall have any liability to the other by reason of any such shutdowns.

GENERAL PROVISIONS

CONTRACTUAL REMEDIES

Any breach of these Policies or the BM Agreement, or any illegal, fraudulent, deceptive, or unethical business conduct on your part may result, at our sole discretion, in one or more of the following contractual remedies:

• Issuance of a written warning or admonition.
• Seeking a liquidated damage amount from you, which may be imposed immediately or withheld from future commissions.
• Reassignment of all or part of your organization.
• Placing you on Account Hold, during which period you may not conduct PurpleU business or receive compensation.
• Suspension of your BM status, which may result in termination, or reinstatement with conditions or restrictions.
• Termination of BM status.

ACTS OF HOUSEHOLD MEMBERS

The violation of a provision of the PurpleU BM Agreement or these Policies by any member of your immediate household will be imputed to you and will subject you to appropriate action by PurpleU, including possible termination of your status as a BM.

GRIEVANCES AND COMPLAINTS

If you have a grievance or complaint about another BM that you are unable to resolve regarding any practice or conduct related to the PurpleU business, please submit a report (electronic or written) describing the situation to PurpleU BM Support for review to cs@purpleu-us.com.

REPORTING POLICY VIOLATIONS

If you observe a violation of the Policies by another PurpleU BM, please submit a report (electronic or written) to PurpleU BM Support (cs@purpleu-us.com) describing the circumstances, evidence, and any other pertinent information. Your report to the Company will be held in the strictest confidence.

AMENDMENTS

The Company reserves the right to amend 1) BM Agreement, 2) the Compensation Plan, 3) the Policies, 4) its prices, 5) product and service availability at any time without prior notice as it deems appropriate. Amendments will be communicated to BMs through official Company publications, websites, or voice or e-mail. Amendments are effective and binding on all BMs as of the date of issuance. In the event of any conflict between the original documents and policies and any such amendment, the amendment will control.

INDEMNIFICATION/OFFSET

As a BM, you indemnify and hold harmless PurpleU and its owners, employees, agents and assigns from and against any damages, claims or liabilities and expenses (including attorneys’ fees) incident to your: (a) activities as a BM including, without limitation, any unauthorized representations made by you; (b) breach of the terms of the BM Agreement; or (c) violation of or failure to comply with any applicable federal, states or local laws or regulations. PurpleU shall have the right to offset any amounts owed by you to PurpleU (including, without limitation, the repayment of commissions because of product returns) against the amount of any commissions or bonuses owed to you.

SPAM AND MASS SOLICITATION

BMs may not use or transmit SPAM email, text messages, conduct mass solicitations via social media that violate the policies of a social media platform, make unsolicited telephone calls, or use an automatic telephone dialing system relative to the operation of their PurpleU businesses and agree to inform themselves of the laws applicable to telemarketing. The term “unsolicited telephone calls” telephone calls made for the purpose of solicitation to a recipient who has not consented to the telephone call. The term “automatic telephone dialing system” means equipment that has the capacity to: (a) store or produce telephone numbers to be called, using a random or sequential number generator; and (b) to dial such numbers.

BMs are not authorized to make unsolicited telephone calls on PurpleU’s behalf. If a BM decides to make such calls to persons with whom he/she has an Existing Business Relationship (defined to arise where (1) a product or service has been purchased by the person from the BM within the previous 18 months, (2) an inquiry or application has been made by the person of the BM within the previous 6 months, or (3) there is a written contract currently in effect between the person and the BM or that has expired within the previous 18 months), they do so on their own behalf and are required to undertake that they will comply with all applicable rules and laws, including: (1) privacy laws, (2) registration with the National Do Not Call List program under the Telecommunications Act rules, (3) maintaining a Do Not Call List so that consumers may request not to be called, and (4) disclosing the following information at the beginning of the call: purpose of the call, a toll-free telephone number for questions or comments about the call, the nature of the product or business interest being promoted, and the identity of the person or organization on whose behalf the call is made, the price of any product being promoted and any material restrictions, terms or conditions applicable to its delivery. BMs are not permitted to make or send any other unsolicited telephone calls. In keeping with the spirit of PurpleU’s values, BMs should strategically post to social media and should avoid over-posting that arises to the level of spam and nuisance.

CUMULATIVE REMEDIES/WAIVER

All rights, powers, and remedies given to PurpleU are cumulative, not exclusive, and in addition to all other rights and remedies provided by law. No failure or delay of PurpleU to exercise any power or right under this Agreement or to insist upon strict compliance by you with any obligation or provision shall constitute a waiver of PurpleU’s right to demand exact compliance therewith. The waiver by PurpleU can be effective only in writing by an authorized officer of PurpleU.

INJUNCTIVE RELIEF

Upon any breach of the BM Agreement by the BM, PurpleU will be immediately and irreparably harmed and cannot be made whole solely by monetary damages. Because the remedy at law for any breach of any provision of the BM Agreement shall be inadequate, in addition to any other remedies in law or in equity that it may have, PurpleU shall be entitled, without the necessity of proving actual damages, to temporary and permanent injunctive relief to prevent the breach of any provision of this Agreement and/or to compel specific performance of this BM Agreement. In addition, PurpleU shall be entitled to its costs and expenses, including reasonable attorneys’ fees, in enforcing its rights under the BM Agreement.

WAIVER

PurpleU maintains its right to insist on compliance with these Policies or with the applicable laws governing the conduct of a business. If we permit a variance of the rules, that permission does not extend to future variances. This provision deals with the concept of “waiver,” and the parties agree that we do not waive any of our rights under any circumstances.

JURISDICTION

All disputes and claims relating to PurpleU, the BM Agreement, the Compensation Plan, the Company’s products, the rights and obligations of the BM, or any other claims or cause the use of action relating to the performance of either the BM or PurpleU under the agreement shall be adjudicated totally and finally in the State of California or such other location as the Company prescribes. Unless the State in which you live requires the application of its laws and venue, this agreement is governed by the laws of the State of California, without regard to principles of conflicts of laws.

PARTIAL VALIDITY

Should any portion of the BM Policies, the BM Agreement, or of any other instruments referred to herein or issued by PurpleU be declared invalid by a court of competent jurisdiction, the balance of such rules, applications, or instruments shall remain in full force and effect.

LIMITATION OF DAMAGES

To the extent permitted by law, PurpleU and its affiliates, officers, directors, associates, and other representatives shall not be liable for, and the BM hereby releases the foregoing from and waives any claim of loss of profit, incidental special, consequential, or exemplary damages which may arise out of any claim whatsoever relating to the Company’s performance, non-performance, act, or omission with respect to the business relationship or other matters between the BM and the Company whether sounding in contract, tort or strict liability. Furthermore, it is agreed that any damage to the BM shall not exceed and is hereby expressly limited to the amount of unsold PurpleU products and services owned or held by the BM and commissions, bonuses, and overrides.

PRIVACY POLICY & CONSENT

You understand and agree that certain personal information relating to you and your business will be collected, used, and retained by the Company in accordance with the Company’s Privacy Policy, as amended from time to time and otherwise in accordance with state and federal privacy laws, and you hereby consent to same. The Company reserves the right to amend or revise the terms of its Privacy Policy without express notice to you, and you consent to any amendments reasonably made. In operating your independent business, you also agree to adopt, implement, and disseminate a privacy policy that complies with all state and federal privacy laws that your business may be subject to, for which you are solely responsible, and such compliance shall be undertaken at your sole expense. You acknowledge that failure to comply with these terms may result in immediate termination of your BM Agreement. Without limiting your sole responsibility to comply with state and federal privacy laws affecting your business, the Company hereby grants you, at no additional charge, for the term of your BM Agreement, the right to copy and use in your business the Company Privacy Policy and related privacy policy consents.

PRACTICING THE PURPLEU VALUES

BMs must always:

• Conduct themselves with the highest level of ethics, integrity, and professionalism.
• Be respectful to customers, affiliates, other BMs, and PurpleU staff.
• Not discriminate against any individual because of age, race, creed, color, or any other legally protected status.
• Provide helpful customer care with the intent of developing long-term customer relationships.
• Refrain from making disparaging comments or gossiping about others.
• Keep communications and actions positive, constructive, and generally helpful.
• Give others, including PurpleU staff, the benefit of the doubt.

ENTIRE AGREEMENT

These Policies and the Compensation Plan, as each may be amended from time to time, are incorporated into the PurpleU BM Agreement, and constitute the entire Agreement of the parties regarding their business relationship.

COMPANY ADDRESS AND CONTACT INFORMATION

PurpleU USA, Inc.

3600 WILSHIRE BLVD STE 1410

LOS ANGELES, CA 90010

Email: cs@purpleu-us.com