Sales Policies and Distribution Guidelines

For over thirty years. CosMedical Technologies ("CosMedical") has been a trusted, leading provider of state-of-the-art custom branded skincare products to physicians, medical spas, and skin care specialists across the globe.

With your own custom brand from CosMedical, you enhance your patient satisfaction by extending a quality in-office experience to homecare, while creating an additional revenue stream for your practice or medical spa. As you select and control your pricing and markup percentage, you can also maintain better profit margins.

CosMedical is your partner in helping you grow your skincare business. You invest time and money growing and supporting your skincare brand, and a key benefit of your own custom brand is that your customers must return to you to repurchase product. To support you and ensure the integrity and strength of your own brand, CosMedical products are available only to physicians, medical spas, and licensed aestheticians.

Our founder, Dr. Loretta Ciraldo, understands the needs of busy physicians and skin care specialists. That is because she runs her own practice and is a passionate advocate for change to benefit the medical community. To support and protect your own brand and all of the other brands established via CosMedical, our Sales Policies and Distribution Guidelines are strictly enforced. By opening an account with CosMedical, you agree to remain in compliance with our Sales Policies and Distribution Guidelines. CosMedical reserves the right to close an account based on any violation of our Sales Policies and Distribution Guidelines. Please note that our Sales Policies and Distribution Guidelines are subject to change in CosMedical's sole discretion.

Distribution Guidelines and Internet Resale Policy

We permit customers to sell their custom branded skincare in their practice or spa, and through their own websites specifically dedicated to their medical practice or medical spa. In order to protect the integrity of all of our customers' individual brands, we do not permit customers to sell their product on third-party e-commerce websites, including but not limited to Amazon.com, Ebay.com, Etsy, Alibaba, etc.

Licensing Requirements

CosMedical's peels are medical strength and can only be purchased by physicians or licensed aestheticians. Prior to purchasing peels, the lead provider must attend a peel training and have an active license number on file with CosMedical.

Malpractice Insurance

It is our understanding that most basic malpractice coverage will include glycolic acid and other peel procedures. Your current category should not change if you institute glycolic acid peels in your practice. However, please check your individual carrier regarding your specific coverage.

Liability Insurance

We recommend that you consult with your own insurance agent to obtain general liability and products liability insurance for your practice or medical spa. If you would like to be named as an additional insured on CosMedical's policy, please email accounting@cosmedicaltechnologies.com.

Resale Certificate for Sales Tax

To be exempt from sales tax on your orders, your business must provide a Resale or Exemption Certificate from your State Department of Revenue and provide a copy to CosMedical. Without a valid, current Resale or Exemption Certificate on file, CosMedical will be required by law to charge sales tax on your order and remit it to the relevant jurisdiction. No exceptions can be made to this policy. In addition, sales taxes on prior orders will not be refunded due to customer's failure to provide a valid Resale or Exemption Certificate prior to placing an order.

Order Terms

• Reorder minimum of $500.
• Minimum order quantities:
  • Retail and Deluxe Travel size: 6 units per SKU and multiples of 6 thereafter (i.e., 6, 12, 18 units)
  • Systems: 4 units per SKU and multiples of 4 thereafter (i.e., 4, 8, 12, etc.)
  • Professional sizes/Backbar: 1 unit per SKU
  • Testers: 1 unit per SKU (provided that a maximum of 1 tester may be purchased with every 6 retail size units on an order)
• All freight costs are borne by the customer unless a qualifying order of $2,500 NET is met for Partner Rewards Statuses: Gold, Platinum, Diamond, and Diamond+. Freight is calculated upon shipping and added to total invoice amount.
• Bounced checks or chargebacks will incur a $35.00 USD fee.
• An invoice greater than $25,000 must be paid via wire transfer.
• Partner Rewards Standard Order Discount does not apply to Deluxe Travel sizes, Systems, Kits, Sample Packs or Testers. The Standard Order Discount applies to Retail sizes, and Professional/Backbar.

Pre-Pay Orders

For all customers on prepaid terms, their credit card is pre-authorized at the time the order is placed, which places a pending charge on the customer's credit card. Then products are custom assembled and shipped. At the time of shipment, a second charge will appear on the customer's credit card for the order + freight charges + taxes, if applicable, and the original pending charge, when the order was initially placed, will disappear from the customer's statement within a few business days, depending on the speed of their credit card company.

Annual Account Minimums

To maintain an active account with CosMedical, a customer must purchase a minimum of $3,000 NET during a calendar year (after discounts, not including freight or taxes). If a customer purchases less than $3,000 in a calendar year, their account will be closed in January of the new year and a $3,000 re-activation order will be required to reopen the account.

Inactive Accounts

If you have not placed an order with CosMedical for a period greater than 6 months or have not met the annual

$3,000 purchase requirement, your account will be deemed inactive and closed by CosMedical. An inactive account may only be re-activated through a $3,000 reactivation order. An inactive account may be re-activated only once in their partnership lifespan with CosMedical. If the account is closed a second time for inactivity or failure to meet the annual account minimums, it may not be reopened again.

Purchase and Quality Agreement

Due to changes implemented under the Modernization of Cosmetic Regulations Act of 2022 (MoCRA), all CosMedical customers are required to enter into a Purchase and Quality Agreement. The purpose of this agreement is to define the roles and responsibilities of CosMedical and the customer with respect to MoCRA and other FDA laws and regulations, and to identify customers for whom CosMedical will need to list cosmetic products with the FDA pursuant to MoCRA. The Purchase and Quality Agreement must be signed prior to shipment of a customer's first order. Annually thereafter, customers will need to make a certification to CosMedical in order for us to determine whether your products require FDA listing. Customers who do not have a current contract or certification on file will have their accounts placed on hold until their status is brought up to date.

Order Change Requests

If changes need to be made to an order after it has already been submitted to the Practice Development Specialist, these changes may be subject to a 35% restocking charge.

Order and Shipping Confirmations

Within 24 hours of placing a Sales Order you will receive an order confirmation email from accounting@cosmedicaltechnologies.com. After an order ships, you will receive a shipping confirmation email (after 5pm EST M-F) containing tracking number information from accounting@cosmedicaltechnologies.com. If you do not receive these emails, please confirm email on file for invoices via your Practice Development Specialist.

Shipping Methods and Rates

CosMedical processes orders Monday through Friday in the order in which they are received.

CosMedical ships to all fifty U.S. States and internationally. Deliveries are scheduled from Monday-Friday (no delivery service on Saturday or Sunday). Please allow, on average, 3-4 business days for Order Processing and Fulfillment, and an additional 1-5 business days for Shipping within the continental US, depending on the destination. At this time, orders placed through cosmedicaltechnologies.com ship only to the fifty United States, and not to APO/FPO, PO Boxes, U.S. Territories or international addresses.

Local customers are permitted to pick up their orders from CosMedical's offices in Davie, FL, if desired. Customers who wish to pick up orders at the CosMedical warehouse must notify CosMedical in advance of this request, and the orders must be picked up promptly upon availability by our warehouse. Orders not picked up within 24 hours of availability will be shipped to the address on file at customer's expense. CosMedical will not approve any orders to be picked up by customers during the last 5 business days of the month. All orders available to ship during the last 5 business days of each month will be shipped via UPS at the customer's expense. If an order is originally processed with the expectation of 'local pickup' and the shipping method is later changed to a common carrier at the customer's request, a change request fee of $250 may be charged to the customer at the discretion of CosMedical.

UPS ground shipping map, reference UPS.com for most recent map, delays and tracking.

Tracking Your Order

Once your order has shipped, you will receive a Shipping Confirmation email with a tracking number for your order. If you have questions about shipping or tracking your order, please contact your Practice Development Specialist

Returns, Exchanges and Restocking Policy

CosMedical stands behind its products and will issue a replacement or credit if you are not satisfied with your purchase and notify us within thirty (30) calendar days of receipt of product. A Restocking Charge of 35% will apply to all unused, unopened items returned where CosMedical has made no error in merchandising or shipping.

CosMedical will issue a replacement or credit for legitimate Quality-related issues within two years from the date of sale or when applicable, within the expiration date of theproduct. In the event you discover any problems believed to be related to package incompatibility, product instability, package defects or other manufacturing issues, please notify CosMedical within two (2) business days of discovery thereof and if possible, provide a sample that is representative of the complaint.

Please call your Practice Development Specialist to discuss your concerns and to obtain a Return Authorization (RA) before returning any product. CosMedical will not credit the return of merchandise without a return authorization.

Mistaken and Damaged Shipments

CosMedical will replace the order (or part thereof) and pay any applicable shipping costs if we made an error with your order (or part thereof). Please note any obvious damage or shortage while applying your signature at the time of delivery. Notify CosMedical within fourteen (14) days of receipt of an order of any order defects believed to be related to order fulfillment or shipping, and if possible, provide a sample that is representative of the complaint. Orders are deemed to be accepted by customer within fourteen (14) calendar days of receipt unless customer has refused or otherwise notified CosMedical of defects in writing.

For damaged orders, keep the original box and all packaging materials for possible inspection by the carrier and/or return to CosMedical. To return any mistaken or damaged item, please call your Practice Development Specialist Monday through Friday from 9amam-5:30pm ET to discuss your concern and to obtain a Return Authorization (RA) before returning any product. CosMedical will not credit the return of merchandise without a return authorization or if returned goods have not been properly packaged in a reasonable manner by customer to ensure safe shipment back to CosMedical for investigation.

Staff Orders

One of the benefits of being a CosMedical customer is access to our Staff Program. Customers who are Silver, Gold, Platinum, Diamond, Diamond+ and Graphite Partners and place a $1,000 NET retail order, will qualify to add additional staff products to their order. Retail size product is available at 25% - 50% off wholesale price for the Staff Order depending on Partner Status. Staff orders may not exceed $1,000 on a single qualifying order. Staff products are generic labeled (nonpractice or CosMedical branded) and are not intended for resale. The intention of this program is to give staff the ability to use the product at home at a discounted price and become raving fans so they can better communicate the benefits of the products to their clients, ultimately increasing staff engagement and retail sales.

Testers

Depending on your Partner Status, you may be entitled to 1 free tester for every 12 retail size units of a product ordered, on every order. In addition, testers are available for purchase at 50% off wholesale price, provided that a maximum of 1 tester may be purchased with every 6 retail size units on an order

Contact Us

Please feel free to contact your Practice Development Specialist directly by email or phone, or call 1-800-275-3627 to speak with a Customer Service Specialist Monday through Friday from 8:30am to 5:00pm ET.

For the most recent Sales Policies, please visit www.CosMedicalTechnologies.com/SalesPolicies