SECTION 1. GENERAL PROVISIONS

1.1 Crowned Free Designs, LLC. (“Crowned Free”) is a direct-selling company marketing clothing, jewelry, and other accessory products to consumers

through a network of Crowned Free Sales Representatives (“CFRs”).

1.2 This Statement of Policies and Procedures (“Procedures”) as well as all the documents, representative materials and information contained in the

Business Kit are referenced by and incorporated into the Independent Retail Sales Representative Agreement. The Agreement constitutes the entire

agreement of the parties regarding their business relationship.

1.3 Crowned Free shall not waive its right to insist on compliance with these Procedures or with applicable laws governing the conduct of a business. This is

true in all cases, both expressed and implied, unless an officer of Crowned Free who is authorized to bind Crowned Free in contracts or agreements,

specifies in writing that Crowned Free waives any of these provisions. In addition, any time Crowned Free grants a written waiver to a CFR for an exception

to these Procedures, that waiver does not extend to or permit any future waiver(s), nor does it extend to any CFR other than the one for whom the express

written waiver is granted.

1.4 These rules are reasonably related to the laws of Michigan and shall be governed in all respects thereby. The parties agree that jurisdiction and venue

shall lie with the place of acceptance of the Agreement, the State of Michigan. The CFR agrees that in the event of any dispute arising under or concerning

the Agreement, suit shall be brought only in a court of competent jurisdiction in the State of Michigan.

1.5 Crowned Free expressly reserves the right to alter or amend its Procedures at any time. Such amendments are automatically incorporated as part of the

Agreement and will be effective on the date the revised Procedures are posted on the Crowned Free website.

1.6 Crowned Free reserves the right to make changes in product prices and availability of products at any time and without notice. Crowned Free

reserves the right to change the contents of the Starter Kits.

1.7 Crowned Free reserves the right to modify or amend its Compensation Plan. Such amendments are automatically incorporated as part of the Agreement

and will be effective on the date the revised Compensation Plan is posted on CFR Resources, which constitutes written notice of any modifications.

1.8 Should any portion of these Procedures or any other instruments referred to herein or issued by Crowned Free be declared invalid by a court of

competent jurisdiction, the balance of such rules, applications, or instruments shall remain in full force and effect.

SECTION 2. INDEPENDENT CONTRACTOR STATUS

2.1 A Crowned Free Designs Representative (“CFR”) is an individual, age 18 or older, or approved individually-owned entity that has executed and

submitted an Agreement that has been accepted by Crowned Free. The agreement is between Crowned Free and the CFR and includes no others.

2.2 CFR is free to sell Crowned Free products only in the United States.

2.3 CFR is not required to carry inventory of Crowned Free products or sales aids. Therefore, Crowned Free does not offer a “buy-back” policy for such

purchases. Product samples, including Crowned Free Starter Kits, may be exchanged, replaced or refunded under the guidelines of the Crowned Free Starter

Kit Return & Exchange Policy. Additional product samples ordered by CFR may be exchanged, replaced or refunded under the guidelines of The Crowned

Free Return & Exchange Policy.

2.4 CFR shall not be treated as an employee for Federal and State tax purposes.

2.5 CFR is an independent sales representative of Crowned Free and is not to be considered a purchaser of a franchise or distributorship.

2.6 The Agreement does not create an employer/employee relationship, agency, partnership, or joint venture between Crowned Free and the CFR.

2.7 CFR is responsible for abiding by all federal, state, county, municipal and other local laws, rules and regulations and shall, at her/his own expense, make,

execute or file all such reports and obtain such licenses as are required by law or public authority with respect to this Agreement and/or to the acquisition,

receipt, holding, selling, distributing or advertising of Crowned Free’s products.

2.8 CFR agrees that if she/he is eligible to receive an IRS Form 1099, Crowned Free may provide this form to the CFR by sending it to her/his email

address of record.

2.9 CFR consents to receive email messages, text messages, auto-dialed calls or SMS updates from Crowned Free.

2.10 CFR has no authority, expressed or implied, to bind Crowned Free to any obligation.

2.11 CFR should set up her/his own hours and determine her/his own methods of sale, so long as she/he complies with the Procedures of Crowned Free. CFR

shall be solely responsible for control of her/his activities, manner and methods of performance of work, conduct and control of work, CFR’s own

employees and/or subcontractors, if any, all equipment necessary to perform her/his sales function, and any investment in her/his own business.

2.12 The death of the CFR will cause termination of the Agreement.

2.13 With special permission granted in writing by Crowned Free, an CFR may be allowed to form a limited liability company or single shareholder

corporation in which to conduct her/his CFR business. Permission will only be extended to those entities which (1) are owned and managed only by

the Applicant, (2) are limited in scope to the purpose of carrying out the business of a CFR, (3) do not allow the addition of any new members or co-

owners, (4) are non-transferable, and (5) terminate upon the death or withdrawal of the CFR. Crowned Free will not approve any CFR conducting

business in a partnership, corporation, limited liability company, or any other business entity in which there are multiple owners. In those cases where

the CFR has been granted permission to conduct her/his Representative Business (“RB”) as a limited liability company or corporation, it is agreed that

since the RB is under the control of its owner, the actions of the individual owner, member, manager, agents, employees and officers, if any, which are in

contravention to the Procedures shall be attributable to the RB as a whole.

2.14 CFR authorizes Crowned Free to verify all personally identifiable information provided to Crowned Free in the CFR Application.

2.15 CFR hereby certifies to Crowned Free that she/he is duly authorized to work in the U.S. and that if she/he has any employees performing work under this

Agreement, such employees are duly authorized to work in the United States. Lack of work authorization by the CFR or its employees performing work

under this Agreement is a violation of this Agreement and is cause for its immediate termination by Crowned Free. If such lack of authorization causes

Crowned Free any harm, CFR agrees to fully indemnify Crowned Free, Crowned Free’s officers and employees for all its actual and consequential losses

and any related legal fees. If a dispute arises out of the CFR’s violation of this clause, such dispute, to the extent of applicable law, is governed by U.S.

immigration law.

2.16 CFR agrees that while under contract with Crowned Free, CFR will maintain residency in the United States. Should the CFR relocate to a

residence outside the United States, the Agreement may be terminated. If CFR’s relocation to a residence outside the United States is temporary,

CFR may send a written request to Crowned Free requesting that CFR’s Agreement remain active during the temporary relocation. Crowned Free

will evaluate each situation on a case-by-case basis using the following criteria as guidelines for decision making:

a. Can the CFR temporarily relocate without substantial disruption or administrative burden to the CFR, Crowned Free, and/or (where

applicable) the CFR’s sales organization and/or Upline?

b. Will the CFR maintain a permanent U.S. residence while living temporarily outside the United States?

c. Will the CFR reside in the United States for at least six months out of the calendar year in question?

All requests to maintain an active Agreement during a temporary relocation will be evaluated by Crowned Free’s executive management who will provide a written decision to the CFR.