1. Distributor Status: An Account Executive (Distributor) is a qualified Regional Representative (RR) of Professional Beauty Network (PBN) who has met the requirements listed below. Only Qualified and Authorized PBN RR's may participate in the Distributor program.

2. Position Purpose: To encourage sponsors to teach their Team Members how to enroll new members and assist them in doing so within the first few months of their enrollment.

3. Independent Contractor: The Distributor acknowledges that he/she is an independent contractor, conducting business for Distributor's own account, and not as an agent or employee of PBN. The Distributor shall be responsible for payment of all applicable Federal and State taxes (including social security taxes, unemployment taxes and income taxes), and will abide by all applicable Federal, State and Local laws. Distributor agrees and understands that he/she can not bind PBN or any of its provider companies by any promise or agreement, to incur any debt, expense, or liability in its name or account, or waive any of the provisions of the PBN programs or RR Agreements or Distributor Agreements.

4. Enrollment: Any active PBN RR may enroll as an Distributor by paying the Distributor enrollment fee and signing this agreement. RR may choose to enroll as an Distributor when they enroll as an RR or any time thereafter so long as they are active RR.

5. Sales Qualification: To qualify as an Distributor, the Distributor must sell (and maintain) a minimum of $50 in sales of new member programs in the PBN Affiliate Program subsequent to enrolling as an Distributor.

6. Training Qualification: A Distributor must thoroughly review the training materials located in the training module. Additional material will be added as new requirements become necessary. All training will be conducted by the repective Regional Sales Director (RSD).

7. Membership Qualification: A Distributor must be a member in good standing of the PBN Regional Representative Program.

8. Recruiting Qualification: A Distributor must personally recruit one new Distributor per quarter. This qualification must be met in the first quarter within 90 days of the Distributor enrollment date.

9. Customer Acquisition Bonuses (CAB's): Distributors will be paid a Customer Acquisition bonus of $25 for each new Distributor that he or she personally enrolls if that Distributor meets the Sales Qualification in the first sixty days after enrollment.

10. Training Bonuses: RSD/Trainers will receive $10 training compensation for each new Distributor trained. Training compensation will be paid only once on each new Distributor. In the event of a dispute, the Distributor Training Certification received first will determine which RSD will be paid for training that Distributor. This training compensation will be paid only after Distributor completes the training sessions utilizing corporate authorized materials. Such training must be at least two hours in duration and be evidenced by the completion of the Distributor Training Certificate by the Distributor who received the training. The use of unauthorized materials or falsification of documents will result in disciplinary action, up to and including the termination of the RSD/Distributor from PBN.

11. Compensation Payments: CAB bonuses and training bonuses will be paid on the 25th of each month based on qualified sales by the 15th of that month. All CAB Bonuses and Training Compensation will be paid via automatic deposit to the bank account designated by the Distributor.

12. Chargebacks: Chargebacks of CAB Bonuses may be made at the discretion of the Company when a new Distributor loses the Sales Qualification for a period of more than two weeks in his or her initial 60 days after enrollment.

13. Training Materials: Upon enrollment as an Distributor, The Company will provide the Distributor with additional training materials which will include marketing website, training manuals and other media as deemed necessary by The Company.

14. Training and Support: RSD's agrees to support the RR and Distributor's on his or her Team and provide proper training and support to encourage the enrollment of new representatives and members. RSD agrees that this training will be done properly, using Corporate-issued training materials and other materials only when they have been approved by Corporate. RSD agrees to represent the program, compensation plan and any other information about the Company fairly and completely in these training sessions. RSD agrees not to represent any other products or companies in these sessions without the express written consent of the Company.

15. Governing Law: This agreement shall be governed by the laws of the State of California without regard to choice of law principles.