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International Expansion FAQs: Mexico, Australia, and Poland

When will Consultants be able to sell and sponsor in Australia, Mexico, and Poland? Consultants can sell* and sponsor in these additional countries beginning Sept. 1, 2013. Like with any system deployment, a splash page will display on your Workstation and Personal Website (PWS) beginning at 11:59 PT Sept. 1, 2013 until we have completed testing. The Workstation should be available approximately 12 hours later.

*Consultants cannot sell outside their region. For example, Region 1 Consultants cannot sell in Regions 2 or 3. You may sponsor in another region only if enrolled in the Cross Region Subscription for that region.

How easy is it to sell and/or sponsor someone in a different country or Region? What are the fees associated with sponsoring in these new countries? To sell and/or sponsor outside of your home country, you must agree to an International Service Fee. There are two types of International Service Fees: In-Region and Out-of-Region. The In-Region International Service Fee allows Consultants to sell and sponsor in other countries within their home Scentsy Family Region. The Out-of-Region International Service Fee allows Consultants to sponsor (but not sell) outside their home Region. This is in addition to monthly Personal Website (PWS) fees. A PWS is required to recruit and sponsor new Consultants.

AUSTRALIA (AUD) MEXICO (MXN) POLAND (PLN)

GST Inclusive VAT Inclusive VAT Inclusive

PWS $13 $160 40 zł

Cross-border $7 $80 20 zł

Cross Region $13 $160 40 zł

See the Cross-Border Sponsoring Outside Your Region training document on the Resources tab of your Workstation for detailed instructions. What Regions are there and what countries are associated with each one?

Region 1: Canada, Mexico, and the United States

Region 2: Austria*, France, Germany, Ireland, Italy*, Luxembourg*, Poland, Spain, and the United Kingdom

Region 3: Australia *Sales only, not open for enrollment of new Consultants.

How do new Consultants enroll? New Consultants in Australia, Mexico, and Poland may enroll under a current Scentsy Family Consultant Sept. 1, 2013. For the first six months, a new Consultant will be allowed to enroll under Scentsy Family. Consultants who join under Scentsy Family may choose a Sponsor at any time. Starting March 1, 2014, anyone who joins Scentsy Family must enroll under a current Consultant. How much are Starter Kits for new Consultants in these countries?

Country Scentsy Fragrance Grace Adele Shipping Fees

Australia $139 (AUD) $289 (AUD) $13 (AUD)

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Mexico $1,799 (MXN) $3,699 (MXN) $160 (MXN)

Poland 340 zł (PLN) 979 zł (PLN) 40 zł (PLN)

What are the product offerings for Scentsy Fragrance and Grace Adele in the new countries? Scentsy Fragrance and Grace Adele will launch with a narrowed product offering in Australia, Mexico, and Poland. Will my PWS support these new countries?

Your PWS will have the capability to support the new countries. When you accept the seller’s agreement for a country, support for that country will be activated on your PWS. How does a customer place an order on my PWS for one of these countries?

If you are enrolled to sell in another country within your region, a customer placing an order on your PWS will select their country from the “Country/Language” drop-down box in the upper right hand corner of your PWS. How do I place an order in my Workstation for one of these countries?

You will be able to select the country for which you are placing the order in the “Select Country/Language” drop-down box (upper right hand corner of the Workstation). Only those countries for which you have accepted the seller’s agreement will be visible in the drop-down box. What are the Host Reward levels in Australia, Mexico, and Poland?

Guest Sales-Australia* $220-349 $350-599 $600-1,399 $1,400+

Free Product 10% 10% 15% 15%

Half-Price Items 1 2 3 4

*Host Rewards are GST inclusive

Guest Sales-Mexico** $2,800-4,499 $4,500-7,499 $7,500-18,499 $18,500+

Free Product 10% 10% 15% 15%

Half-Price Items 1 2 3 4

**Host Rewards are VAT inclusive

Guest Sales-Poland*** 730-1,199 zł 1,200-1,899 zł 1,900-4,749 zł 4,750+ zł

Free Product 10% 10% 15% 15%

Half-Price Items 1 2 3 4

***Host Rewards are VAT inclusive

Where will products ship from?

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We will ship products to Australian Consultants and customers from within Australia. All products being shipped to Mexico will come from our distribution center in Coppell, Texas. Orders to Poland will ship from a shipping facility in the Netherlands.

Our policy to ship all orders within 10 business days of the order date extends to these new countries. What shipping costs are associated with orders in these new countries?

Australia WORKSTATION

Minimum Maximum Shipping Charge

Individual Order $0.01 $39.99 $8

$40 $219.99 20%

Party Order $220 Unlimited FREE

*Party Order - Direct Ship $0.01 $39.99 $8

$40 Unlimited 20%

Scentsy Family Store Order $0.01 $59.99 $10

$60 Unlimited FREE

Australia PERSONAL WEBSITE (PWS)

Minimum Maximum Shipping Charge

PWS Order

$0.01 $49.99 $10

$50 $219.99 20%

$220 Unlimited FREE

PWS Order Attached to a Party $0.01 $49.99 $10

$50 Unlimited 20%

*Orders sent directly to a customer instead of to the primary shipping address chosen by the Consultant. The shipping charges listed are GST inclusive. Shipments are limited within Australia.

Mexico WORKSTATION

Minimum Maximum Shipping Charge

Individual Order $0.01 $599.99 $120

$600 $2,799.99 20%

Party Order $2,800 Unlimited FREE

*Party Order - Direct Ship $0.01 $599.99 $120

$600 Unlimited 20%

Scentsy Family Store Order $0.01 $799.99 $150

$800 Unlimited FREE

Mexico PERSONAL WEBSITE (PWS)

Minimum Maximum Shipping Charge

PWS Order

$0.01 $749.99 $150

$750 $2,799.99 20%

$2,800 Unlimited FREE

PWS Order Attached to a Party $0.01 $749.99 $150

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$750 Unlimited 20%

*Orders sent directly to a customer instead of to the primary shipping address chosen by the Consultant. The shipping charges listed are VAT inclusive. Shipments are limited within Mexico.

Poland WORKSTATION

Minimum Maximum Shipping Charge

Individual Orders and Personal Website Orders

0.01 zł 729.99 zł 30 zł

730 zł Unlimited FREE

Party Order 730 zł Unlimited FREE

*Party Order - Direct Ship 0.01 zł Unlimited 30 zł

Scentsy Family Store Order 0.01 zł 199.99 zł 30 zł

200 zł Unlimited FREE

*Orders sent directly to a customer instead of to the primary shipping address chosen by the Consultant. The shipping charges listed are VAT inclusive. Shipments are limited within Poland.

How are items taxed in these new countries? Australia employs a Goods and Services Tax (GST) of 10 percent to most goods and services. Mexico has a Value Added Tax (VAT) of 16 percent. Poland has a Value Added Tax of 23 percent.

In all three countries, the added tax must be included in the listed price of products. For instance, if a Scentsy Warmer is listed at $43 (AUD), that price includes tax; if a Grace Adele Bag is listed at $1,485 (MXN), that price is VAT inclusive. How are commissions calculated in different countries that use different currencies? Scentsy has a global Compensation Plan designed to support multiple countries. The commission calculation is: PRV x Commission Percentage x Peg Rate = Commission amount in local currency.

Current peg rates: United States: 1 Australia: 1.3 Mexico: 16 Poland: 4

Will there be awards and incentives for Consultants in these countries? Yes. The Scentsy Family Consultant Guide will include specifics about each of the awards and how to achieve them. How will Consultants in these new countries be supported? We will have dedicated Consultant Support teams for each new country. This way we can ensure that our Consultant Support Representatives are knowledgeable about the new markets, and that our hours of operation match normal business hours in each country. Will Scentsy Family Store products be available? Scentsy Family Store products will be available at launch. These include catalogs, order forms, Host Rewards brochures, and Host and Join brochures. We will let you know about other items as they become available. What other tools will be available to new Consultants?

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Scentsy Consultants in these new countries will have similar tools to those available for current Consultants. They will have a Workstation and the ability to subscribe to a Personal Website (PWS). New Consultant Starter Kits specific to these countries will be sent to new recruits in their respective country. Will Scentsy Family host welcome meetings in these new countries? Yes. We are planning to host welcome meetings. We encourage anyone to attend, and will let you know when and where the events will take place. I have contacts in Australia who would like to join Scentsy. What do I need to do? There are some simple steps you can take to be ready to sponsor in another country:

1. You must have a PWS. 2. Go to "Subscriptions" in the Account tab on your Workstation and enroll in the International

Service Fee Agreement: Out-of-Region. Then, go to the country in which you wish to sponsor and accept the Scentsy Independent Consultant Agreement (SICA) for that country.

Once you have agreed to the International Service Fee Agreement: Out-of Region, your potential recruit will be able to go to your PWS and enroll. I have contacts in Mexico I would like to sponsor, but I don’t speak Spanish. What can I do to support them? One of the benefits of agreeing to the International Service Fee Agreement is the ability to change your market and language on your Workstation or PWS. If you have the agreement and accept the SICA for Mexico, you will be able to view your Workstation and PWS in Spanish, or in an English language version of the Spanish content. You see what your recruit sees, in whichever language works best for you. Prior to enrolling Consultants in another country, make sure you feel like you are able to support these newly-sponsored Consultants. Can Region 1 and 2 Consultants sell in Region 3? Region 1 and 2 Consultants residing in Australia, on or off a military base, cannot sell to Region 3 customers. Consultants must live and be enrolled as a Consultant in the Region where they do their Scentsy business.

1. Long-distance management of a team is extremely difficult, and the ability for U.S. and Canadian Consultants to support sales in foreign countries is difficult and expensive.

2. The cost of shipping products from the U.S. to Region 3 or other markets would not be feasible due to shipping costs and import fees.

3. Residing in the Region if you are not a citizen or authorized to work there doesn’t mean you can legally sell there. i. For Region 1 Consultants who are going to be in Australia for a long enough time that they think

it makes sense, they could terminate their Region 1 agreement and start up as a Region 3 Consultant but then they could not sell to any Region 1 customers.

This is driven from the laws and regulations we have to work under by expanding outside of the U.S. and Canada. Tax structures are different, reporting of income is different, and this equates to it being a lot more expensive to do business long distance as well. Please see the policy below for more information.

6.2.8 – International Sales You are only allowed to sell Scentsy Family products or offer the Scentsy Family opportunity within the United States, U.S. Territories, and those countries in which Scentsy Family is operating, as announced in official Scentsy Family literature. Consultants are not allowed to conduct business in any country or region until Scentsy Family has officially launched operations in that country or region. Conducting business

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includes advertising, recruiting, or selling products. Signing the Independent Consultant Agreement only authorizes the Consultant to work inside the United States and its territories. Additional documentation and agreements are necessary for U.S. Consultants to sell outside of the United States. International agreements and a list of open locations are located within the Account tab on your Workstation and must be accepted and transmitted before U.S. Consultants can sponsor and/or sell outside of the U.S. Can I participate in a fair or show in any of these new countries? No. Please make sure you are familiar with Scentsy Family’s policy on fairs and shows in other countries.

6.5.4.4 – International Fairs and Shows Policy Only Scentsy Family Consultants who have signed a Country-Specific Distribution and/or Sponsorship Agreement AND who are RESIDENTS of that country (regardless of their citizenship) are allowed to enter into agreements and/or contracts with a fair, show, or other temporary sales event in that country. You may not take products across international borders with the intention of selling them. How can Consultants advertise in Mexico, Australia, and Poland? Per the Scentsy, Inc. Policies and Procedures, Consultants cannot purchase email, phone, or direct mail lists to contact people they do not know personally.

If Region 1 and 2 Consultants have family or friends in Region 3, they can contact them, and/or contact other potential recruits through them. Acceptable: I live in the U.S. but my mother lives in Australia. She talks with some of her friends

about the great opportunity Scentsy is and refers them to join under me because I have the Region 3 international agreement.

NOT acceptable: I live in the U.S. and my mother lives in Australia and works at a company. She forwards a generic email from me to all the employees in her company about joining Scentsy.

Can I start advertising my Scentsy Fragrance or Grace Adele business in these new countries in print materials (i.e. newspapers, magazines, flyers, etc.)? Not until after the official launch on Sept. 1, 2013. Consultants may not advertise in these countries until we are officially authorized to conduct business there. Can I start promoting my Scentsy Fragrance or Grace Adele business in these new countries on social media pages or via word-of-mouth promotion to get the word out about the business (i.e. Facebook, Craigslist, Pinterest, etc.)? Yes, we encourage you to spread the word among your contacts via word of mouth and even social media sites. All current policies related to advertising and social media apply. How do I go about finding people in the new countries who want to enroll? You are encouraged to talk to your friends and contacts about becoming a Scentsy Family Consultant, and if you choose, invite them to attend local welcome meetings and begin promoting the opportunity on social media sites. You must wait for the official launch to begin sponsoring in these new markets. Also, per Scentsy Family’s Policies and Procedures, you may not purchase email, phone, or direct mail lists to contact people you do not know personally. Want to Learn More? For more details on the required agreements, and the ins and outs of sponsoring and selling in our new markets, check out the “International Agreements Overview,” posted to the “International” link in the Resources tab of the Workstation.