DIVERSION POLICY

At Sweis, Inc. we take diversion very seriously and stand behind the quality and integrity of our brands. We also require, by certain vendors, contracts and anti-diversion agreements to be signed in order to purchase these brands, offering additional protection and standing by our commitment to sell to licensed professionals and professional establishments only.

To qualify to purchase products from Sweis, Inc (“Distributor”) a licensed salon, beauty supply or day spa must be a licensed establishment at a confirmed business established location with a confirmed, non-expired license (“Authorized Establishment”). The undersigned Authorized Establishment/Licensed Professional with a confirmed, non-expired cosmetology or other acceptable license (“Authorized Purchaser”) wishes to purchase products from Distributor and Distributor is willing to sell products to Authorized Purchaser under the following terms and conditions:

1. Authorized Purchaser warrants and represents that she/he is a Licensed Salon Professional or it is a salon or business that qualifies as an Authorized Establishment as defined in this Agreement above.

2. Authorized Purchaser agrees that all products purchased from Distributor (a) will be used by Authorized Purchaser in its Authorized Establishment in connection with providing services to its clients, or (b) in the case of retail products designed for use at home, will be sold only in Authorized Purchaser’s Authorized Establishment to its legitimate clients in quantities those clients reasonably need for personal use at home, and (c) will not be sold in any location that does not qualify as an Authorized Establishment as defined in this Agreement above. 

3. Authorized Purchaser agrees that it will not resell products purchased from Distributor to any diverter or redistributor of products; will not sell products purchased from Distributor in bulk; will not sell products purchased from Distributor over the internet or through any form of mail-order or e-mail without prior approval from Distributor and will not divert products purchased from Distributor in any other fashion. Authorized Purchaser agrees that any products marked “For Professional Use Only,” “Not For Retail Sale” or with similar language, including any hair coloring products or smoothing service treatments sold by Distributor, shall not be resold by Authorized Purchaser to anyone under any circumstances, but will be used by Authorized Purchaser only in its Authorized Establishment for the purpose of providing services to clients. Authorized Purchaser will permit Distributor, to enter the Authorized Purchaser’s premises and inspect and audit Authorized Purchaser’s records related to the purchase and sale of products purchased from Distributor, other professional products and professional services to ensure compliance with this Agreement and to combat diversion.

4. Authorized Purchaser recognizes that the sale of products purchased from Distributor in any location other than an Authorized Establishment will seriously damage Distributor’s reputation with the public, and the reputation of its products, and will likely cause confusion as to Distributor’s approval of the sale of its products through such unauthorized locations. Authorized Purchaser acknowledges that diversion will disrupt Distributor’s business relations with its Authorized Establishments. Accordingly, Authorized Purchaser agrees that if it violates this Agreement, Distributor shall be entitled to take action against Salon or Business.

5. Authorized Purchaser agrees to take appropriate steps to advise all of its employees, if any, of the existence of this contract, and to assure their compliance with it. Distributor has the right to withhold sales or shipping any product Authorized Purchaser may be entitled to under any program offered by Distributor, upon a determination by Distributor that Authorized Purchaser has breached a provision of this Agreement.

6. Either Authorized Purchaser or Distributor may terminate this contract with respect to future purchases immediately upon notice for any reason or no reason.

This agreement is intended to benefit Salon/business, Distributor and the manufacturers of the brands distributed by Sweis Inc.