INTERNATIONAL HAIR COSMETICS LTD.

SELECTIVE DISTRIBUTION GUIDELINES – EXECUTIVE SUMMARY

PURPOSE
International Hair Cosmetics Ltd (“IHC”) operates a Selective Distribution System (SDS) to ensure that its luxury haircare products are sold only through distributors who can guarantee the highest standards of brand presentation, customer experience, and service quality.

LEGAL BASIS
The SDS is established in accordance with EU and UK competition law, including:
• Article 101 TFEU
• Regulation (EU) 2022/720 (Vertical Block Exemption Regulation – VBER)
• CJEU case law (Metro I, Coty Germany)
• The system is based on objective, qualitative, and non-discriminatory criteria.
• The Selective Distribution System is implemented through the Distribution Agreement, the Online Sales Agreement and the present Selective Distribution Guidelines, which together form an integrated contractual and compliance framework.

ADMISSION CRITERIA
To join the authorised IHC network, distributors must:
• Operate professional, high-quality physical premises and/or an authorised website
• Ensure accurate and premium product presentation.
• Provide trained staff and reliable customer support.
• Comply with IHC’s brand image and trademark use standards.
• Refrain from selling via unauthorised online marketplaces.

ONGOING OBLIGATIONS
Authorised distributors must:
• Maintain the admission standards throughout the relationship.
• Allow IHC to monitor compliance (including audits and online checks).
• Act against unauthorised resale and protect IHC’s brand integrity.

PROHIBITED PRACTICES
• Sale to unauthorised third parties or wholesalers.
• Marketplace sales without IHC’s consent.
• Parallel imports/exports outside authorised territories.
• Misuse of trademarks or repackaging of products.

ENFORCEMENT
IHC actively monitors compliance. Non-compliance may result in suspension or termination of the distribution agreement, as well as legal action against unauthorised resellers.

UPDATES
The Guidelines are reviewed periodically and may be updated to reflect legal and market developments.
Note: This summary is intended as an overview. The full Selective Distribution Guidelines are available to authorised distributors upon request.