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MINIMUM ADVERTISED PRICE (MAP)

MINIMUM ADVERTISED PRICE (MAP)

The following is the Minimum Advertised Price (“MAP”)/Internet Sales Policy (“Policy”) of HOBIII concerning the advertising, marketing, and sale of HOBIII brand products and other HOBIII merchandise (collectively referred to as “HOBIII Products”). All HOBIII Authorized Resellers are required to comply with the terms and conditions of this Policy. By signing the HOBIII MAP/Internet Sales Policy Confirmation Agreement at the end of this Policy, Authorized Resellers acknowledge their agreement to adhere to these guidelines.

PRICING

MAP pricing for all relevant HOBIII Products is outlined in the current retail price list. Advertised prices must meet or exceed the MAP for all HOBIII Products where a MAP price has been set by HOBIII. While listing prices in advertising is not mandatory (subject to Pricing Statements below), if prices are advertised, they must be at or above the established MAP.

PRICING STATEMENTS

Authorized Resellers are tasked with ensuring that their pricing for HOBIII Products adheres to the MAP when listed on internet search engines. Resellers have the flexibility to set their actual resale prices as long as they meet or exceed the current published MAP price. HOBIII's MAP policy applies to all advertising placements, including but not limited to: print ads (such as inserts, magazines, newspapers, catalogs), broadcast media (radio and TV), direct mail, faxes, internet placements with third parties (like banner ads, broadcast emails, destination pages, third-party sites), internet placements on resellers' own websites, and any promotional materials like flyers, posters, or coupons.

FREE OFFERS

HOBIII may occasionally allow Authorized Resellers to advertise HOBIII Products at prices below the MAP. In such instances, HOBIII reserves the right to adjust or suspend the MAP price for the affected products for a specified period, provided advance notice is given to all resellers about such modifications.

PRICE MATCHING

To the extent permitted by federal, state, or local laws, Authorized Resellers can omit pricing from advertisements or use statements like “Call for Price” or “Call for Quote.”

INTERNET SALES

Promotions offering free shipping and/or handling, 0% sales tax, or free financing do not violate the MAP unless they are used to bypass the MAP or are inconsistent with applicable laws.

Price matching policies are permissible. However, using price matching as an excuse for violating HOBIII's MAP is unacceptable.

Authorized Resellers may sell HOBIII Products on their websites provided they comply with the MAP pricing. Selling on certain platforms is restricted: Ebay.com, Amazon.com, Target.com, CVS.com, RiteAid.com, Walgreens.com, Groupon, Bonanza, Overstocked.com, Alibaba.com, Walmart.com, or any other 3rd party website (collectively referred to as “Selected Sites”). HOBIII reserves the right to sell exclusively on these Selected Sites and may add more sites or restrictions at its discretion, notifying Authorized Resellers in writing. Upon receiving such notice, Authorized Resellers must immediately halt sales through the Selected Sites and remove any listings for HOBIII Products.

VIOLATIONS AND CORRECTIONS

Selling HOBIII Products without signing the MAP/Internet Sales Policy Agreement renders a reseller Unauthorized under this Policy. Any Authorized Reseller found in violation of this Policy and failing to rectify the violation as directed by HOBIII will be considered Unauthorized until they reaffirm their commitment to this Policy in writing and HOBIII reinstates their Authorized status. Selling HOBIII Products to Unauthorized Resellers without HOBIII's prior written consent is prohibited.

Violations by Authorized Resellers must be addressed within one (1) business day of becoming aware of or being notified about the violation by HOBIII, whichever comes first. Weekends and holidays count as business days if correction is feasible on those days. Intentional violations result in immediate termination of the reseller's authorization to sell or purchase HOBIII Products.

ENFORCEMENT

Non-compliance with this Policy may lead to the immediate revocation of Authorized Reseller status and the ability to buy or sell HOBIII Products. Any breach of this Policy is also a violation of the Copyright Act of 1976, the Trademark (“Lanham”) Act of 1946, and other relevant local, state, or Federal laws, subjecting the Authorized Reseller to legal liabilities.

Resellers in violation must reimburse HOBIII for profits from unauthorized sales within five (5) business days of HOBIII's request. HOBIII has the right to inspect any relevant books and records of Authorized Resellers and to recover attorneys' fees and costs incurred due to violations of this Policy.

MAP LIST UPDATES

HOBIII intends to release a new Map List approximately every quarter but reserves the right to issue an updated Map List at any time. Authorized Resellers must promptly adjust their advertised pricing of HOBIII Products upon receiving a new Map List, ensuring compliance within three (3) business days at the latest.

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