Effective January 1st, 2021
Introduction:







   WHEREAS, Moroccanoil and Authorized Account are parties to the Agreement; and


   WHEREAS, Moroccanoil has launched a new line of hair color products (“Color Products”) and wishes to appoint authorized color accounts, which qualify per the terms herein (“Authorized Color Accounts”) to carry and use such Color Products;


   NOW THEREFORE, in consideration of the foregoing, the receipt and sufficiency of which is hereby acknowledged, the Parties agree to add the following provisions to the Agreement as follows:


  1. Qualification - Authorized Color Account
    1. Unless specifically pre-approved in writing by Moroccanoil, only accounts qualifying as a “Qualified Salon” or “Qualified Independent Stylist” per the Criteria detailed in Exhibit A of the Authorized Account Agreement may qualify to purchase and use the Color Products and become an Authorized Color Account. Authorized Color Account represents and warrants that it currently meets and, during the full term of the Color Addendum, will continue to meet Moroccanoil’s requirement to be an “Authorized Color Account”. If Authorized Color Account changes its business operation and no longer meets Moroccanoil’s requirements to be an Authorized Color Account, the Color Addendum shall automatically terminate upon the change occurring.
  2. Qualified Use
    1. Authorized Color Account may only use the Color Products as part of the provision of cosmetological services performed by licensed professionals on customers in premises operated by the Authorized Color Account (“Qualified Use”).
  3. Diversion.
    1. Unless explicitly authorized by Moroccanoil in writing, Authorized Color Account agrees that all Color Products delivered to Authorized Color Account are delivered in reliance on Authorized Color Account’s ongoing representation to Moroccanoil that all Color Products ordered or obtained are solely for the purpose of the Qualified Use.
    2. Unless explicitly authorized by Moroccanoil in writing, any use other than a Qualified Use and/or any resale of the Color Products shall be deemed a diversion by Authorized Color Account and is explicitly prohibited.
    3. Moroccanoil may immediately terminate the Agreement and/or this Color Addendum if it reasonably believes that Authorized Color Account has engaged in an unauthorized use or diversion of the Color Products.
  4. Indemnification.
    1. Authorized Color Account shall indemnify, defend and hold Moroccanoil, and its respective officers, directors, employees, members, agents and affiliates harmless from and against any and all claims, liabilities, damages, expenses, fines, injuries to persons (including death), property damage, penalties and/or costs (including court costs and reasonable outside attorney’s fees and expenses) of any kind arising from any claim, suit, action, arbitration and/or proceeding brought by a third party against Moroccanoil relating to: (1) any use and/or misuse of the Color Products in cosmetological services performed by Authorized Color Account or any of its representatives; (2) any negligence or misconduct of Authorized Color Account or its representatives in performing cosmetological services involving the Color Products; or (3) any other claim related to Authorized Account's performance under this Color Addendum and/or breach of any of its obligations hereunder.
  5. Termination of Color Addendum.
    1. This Color Addendum is subject to the terms and conditions of the Agreement, with any termination of the Agreement causing immediate termination of the Color Addendum.
    2. Termination for Cause. Either party may terminate this Color Addendum if the other party breaches or otherwise fails to comply with any material provision of this Color Addendum and such breach or failure is not cured within fifteen (15) days after written notice of such breach or failure, provided, however, that if the breach is not reasonably capable of being cured, the non-breaching party may immediately terminate the agreement.
    3. Termination for Convenience. Either party may terminate this Color Addendum for convenience upon thirty (30) days’ prior written notice.
    4. Effect of Termination. Upon termination, (i) Moroccanoil shall instruct Distributor to immediately stop providing Color Products to Authorized Color Account either directly or indirectly; (ii) Moroccanoil or Distributor shall each have the right to repurchase any Color Products sold to Authorized Color Account by Distributor that remain in Authorized Color Account’s inventory at the lowest price Authorized Color Account paid to Distributor for those Color Products; and (iii) Authorized Color Account shall immediately stop using any Color Products in services unless otherwise permitted in writing by Moroccanoil.