POLICY STATEMENT 
 
The use of the internet for the sale of cosmetic and prescription products has expanded rapidly over the
last few years. As a result, Obagi Cosmeceuticals LLC (“Obagi Cosmeceuticals”) is concerned about
protecting the businesses of physician customers from unauthorized sites, as well as the Obagi®
brand, and wants to ensure that patients receive the proper training to achieve efficacy and satisfaction from
using Obagi products.
 
As such, Obagi Cosmeceuticals has always encouraged use of the internet by customers to help their
patients either become more aware of the benefits of getting their Obagi products from their practices
or to use the internet as an educational forum. Unfortunately, Obagi Cosmeceuticals has become aware
that there are internet accounts that have been set up without that purpose or goal in mind, and that
some accounts are selling Obagi products through third party auction sites without offering any patient
education, all of which is encroaching on customers’ practices. We have also seen heightened activity
by state government authorities to enforce applicable laws related to the distribution of products,
particularly the dispensing of prescription products, over the internet.
In order to protect customers’ businesses and the Obagi brand image, Obagi Cosmeceuticals has
established this Internet Sales Policy (the “Policy”), which was enforced and became effective as of
January 1, 2016.
 
APPLICABILITY
 
This Policy applies to all Obagi Cosmeceuticals customers and authorized resellers who sell Obagi
products in or to the United States, its possessions and territories, whether selling products through
their practices, medical spas or online (referred to in this Policy as a “Reseller” and collectively as
“Resellers”).
 
GENERAL POLICIES
 
1. Resellers are responsible at all times for complying with all federal, state and local laws,
regulations and rules related to the promotion, sale and dispensing of Obagi products to
patients over the internet. This includes all laws or rules of any state board of medicine or
pharmacy, including those requiring physicians to only sell Rx products to those
patients/others with whom they have established a valid patient-physician relationship, and
those that may require the receipt of specific written authorization from the applicable state
board of medicine or pharmacy to sell prescription-strength products over the internet.
Resellers are responsible for being familiar with any laws, regulations or rules that apply to
them. ANY SALES OF PRESCRIPTION STRENGTH PRODUCTS ARE AT
RESELLER’S OWN RISK OF LEGAL LIABILITY. Resellers should consult their own
legal counsel on these matters.
 
2. Resellers who do operate a website through which they sell Obagi products, must
inform their Obagi sales representative and Obagi corporate offices of the existence of
the website and provide the representative with the URL address. Physicians who
engage in sales of Obagi products over the internet must also sell such products
through their private or group practice.
 
3. Resellers may not, in any instance, use the name Obagi or any of the Obagi
Cosmeceuticals product names in their domain names.
 
4. Resellers who wish to use any Obagi product name, logo or copyrighted image in
sponsored advertising on the internet (e.g., Google ads) must first sign a Copyright
and Trademark Authorization Request (a “Request”), which can be obtained through
an Obagi sales representative, and receive permission from Obagi Cosmeceuticals to
use such product name, logo or copyrighted image in the sponsored ad. Resellers must
abide by all Terms and Conditions contained in the Request form. Resellers should be
aware that Obagi Cosmeceuticals intends to instruct Google to remove all ads
containing a trademark or copyrighted material owned by Obagi Cosmeceuticals or its
affiliates unless the ad is sponsored by a Reseller who is on the Obagi Cosmeceuticals
list of Resellers that have properly filled out a Request and been granted permission to
use the trademark and/or copyrighted material per this Policy.
 
5. Resellers may not sell Obagi products over any internet auction or aggregation site,
such as eBay, Buy.com, Walmart.com, Groupon, Craigslist, ioffer, Sears, etc., or
through social media sites.
 
6. Resellers may not sell Obagi products on Amazon.com unless approval is granted by
Obagi Cosmeceuticals. Approved Resellers are required to advertise (as defined in the
Obagi MAP policy) prices on Amazon no lower than MSRP.
 
7. Resellers may not sell any Obagi professional products, including, but not limited to
Obagi Peels and Obagi professional Facial products, through any internet site, whether
their own practice website or another site.
 
8. Resellers are required to adhere to Obagi’s Minimum Advertised Price Policy with
respect to any Advertisements (as defined in such Policy) they utilize with respect to
their sales of Obagi products.
 
ENFORCEMENT OF POLICIES
 
Obagi Cosmeceuticals does not intend to engage in business with any Reseller who diminishes the
perceived value of Obagi Cosmeceuticals and its products. Accordingly, in the event that Reseller
elects not to follow this Policy, Obagi Cosmeceuticals, without assuming any liability, may
unilaterally impose sanctions on that Reseller, up to and including termination of its relationship with
Reseller, cancelling any pending orders placed by such Reseller and ceasing the sale of any Obagi
products to such Reseller.
 
Obagi Cosmeceuticals shall be solely responsible for determining whether a violation of the
Policy has occurred, for communicating its decisions regarding the Policy to Resellers, and for
receiving any communications about violations or potential violations of the Policy and for
deciding what sanctions to impose, if any.
 
CHANGES TO POLICY
 
Obagi Cosmeceuticals reserves the right to modify, suspend or discontinue this Policy in whole or
in part at any time. Obagi Cosmeceuticals will notify Resellers of any such changes at least five (5)
days prior to implementation.
 
CONTACT
 
OBAGI COSMECEUTICALS SALES REPRESENTATIVES AND EMPLOYEES (OTHER THAN
ITS EXECUTIVE OFFICERS) HAVE NO AUTHORITY TO MODIFY OR GRANT EXCEPTIONS
TO THIS POLICY.
Therefore, all questions or comments related to this Policy should be directed to:
 
Obagi Cosmeceuticals LLC
3760 Kilroy Airport Way #500
Long Beach, CA 90806
Attn: Obagi Policies