Specialty Marketing / Sennheiser

Minimum Advertised Price Policy This Consumer Electronics Minimum Advertised Price (MAP) Policy supersedes any previously communicated minimum advertised price policy by Sonova Consumer Hearing, USA LLC, and is effective as of the date indicated above. At Sonova Consumer Hearing USA, LLC (SCH), we have committed ourselves to delivering and distinguishing the finest quality products and building the highly respected Sennheiser (under license) brand with our valued dealers and end users. To invest in our high standards, which allows us to maintain this respected reputation and brand, we have unilaterally adopted this Consumer Electronics Minimum Advertised Price (MAP) Policy for retailers to promote advertising that communicates the quality of our products. SCH at the corporate management level, will strictly construe this MAP Policy and we will, without prior notice, refuse to provide advertising co-op investments, or continue to sell the MAP Product in question to any retailer who violates this MAP Policy. SCH from time to time may alter, modify, suspend, or cancel this MAP Policy, the products covered, and/or the minimum advertised prices. Definition of “Advertising” under this Policy For purposes of this MAP Policy, “advertising” includes all forms of promotion in any media including, without limitation, websites, audio, video and other forms of electronic media, direct mail, TV, newspapers or magazines, material at trade shows, offering, providing or participation in electronic or print coupon/unique customer code promotions, billboards, social media, catalogues, in an app, text, chat, blog, online forum or “deal website” postings and online price advertising such as “check for pricing”, “text for price ”or “add to shopping cart” and prospecting consumers via automated or live “call for”/”call and mention key word(s)” “click to chat” offers. This MAP Policy relates only to advertised prices and does not restrict the actual sales price at which a MAP Product is sold, nor does it restrict a retailer’s right to establish independent advertised or resale prices. Products covered under this Policy This MAP Policy applies to products for which a Minimum Advertised Price is specified (“MAP Product”) on the current Sonova Consumer Hearing USA, LLC price list. This MAP Policy applies to new products only; it does not apply to “factory sponsored closeouts” or items identified “promotional” in nature, nor does it apply to “remanufactured”, “demo” or “used” products which are clearly and conspicuously identified as such in the applicable advertisement. SCH stock photos are available to use for new products only. Using SCH stock photos in offerings or listings for remanufactured, demo or used products is prohibited. Only authorized B-stock dealers may call themselves “authorized,” and/or use the word “refurbished” in such offerings or listings. Dealers with used, demo or open box items may contact SCH for a return authorization number or may sell such items as “used” or “demo” products within the guidelines outlined above. Strikethrough Pricing Authorized Sonova Consumer Hearing USA, LLC retailers may advertise MAP products at a price which is at or above the Minimum Advertised Price (MAP) established by SCH on its MAP price list. Obliteration or strikethrough of MAP pricing is strictly prohibited. The two allowable instances (exceptions) for MAP price strikethrough are: 1. A written authorized SCH promotion on specific MAP products for a specified time. 2. If a MAP product is advertised below the MAP by an authorized and/or unauthorized retailer(s) (the “offer”), an authorized SCH retailer should notify SCH of the offer by email (MAP@sennheiser- ce.com). After a 24-hour moratorium from the date of the notification, the notifying authorized retailer may begin advertising the same MAP product(s), for no more than 4 consecutive days, at such product(s)’ MAP price(s) including a strikethrough suggesting a lower price may be available from retailer (but without showing a lower price). Lower Price: a. Must be no lower than the offer’s below-MAP price b. May not be searchable, that is it may not be supplied to any sort of internet-based comparison- shopping engines c. May only be accessible by a shopper clicking through to a secondary landing page and d. Must be removed when the offer is removed from the market or at the end of the 4-day period, whichever comes first. If the offer with the below-MAP price is still being advertised beyond the initial 4-day period, the authorized dealer should again notify SCH as outlined in the first sentence as a new violation, via email (MAP@sennheiser-ce.com), to begin a new moratorium and 4-day period. The MAP price strikethrough exception is strictly prohibited on all products contained in SCH’s High End product portfolio (HDV 820, HD 820, HD 800S, IE 900, IE 600, AMBEO Soundbar and any future models added to the high-end portfolio of products). Reselling of MAP Products Sonova Consumer Hearing USA, LLC dealer policy strictly prohibits a dealer from supplying or reselling MAP products to other resellers. If a dealer supplies or resells MAP Products to another reseller, and that sale results in a sale by the reseller that is a violation under this MAP Policy, the selling dealer is accountable for that violation in accordance with this MAP Policy as if the selling dealer violated this MAP Policy itself. From time to time, due to product shortages or other reasons deemed appropriate, SCH’s Vice President of Sales may approve a written exception to this paragraph of this MAP Policy. Product Bundles MAP Products cannot be bundled with other Sonova Consumer Hearing USA, LLC or third-party products. Not with-standing product bundling is permitted where a package or bundle has been prepackaged or sponsored by SCH, provided such package or bundle must be advertised at a price at or above the aggregate of the MAP prices for the MAP products in the bundle. Penalties If Sonova Consumer Hearing USA, LLC verifies to its satisfaction that a retailer has violated this unilateral-al MAP Policy, by advertising a MAP Product(s) in a manner that violates this MAP Policy, SCH will take the following actions: First violation: SCH will notify the retailer of the non-compliant advertisement with a copy of SCH’s MAP Policy together with the current price list identifying the MAP Products. Second violation: SCH will cease supplying and discontinue the retailer’s authorization(s) to purchase the MAP Product(s) and its variants that are the subject of the violation for a period of 30 days from the date of cessation notice. (e.g., a violation of the MOMEMTUM Wireless Black would result in a loss of all MOMEMTUM headphone variants) Third violation: SCH will cease supplying and discontinue the retailer’s authorization(s) for the MAP Product(s) and its variants that are the subject of the violation for a period of 90 days from the date of cessation notice. (e.g., a violation of the MOMENTUM Wireless Black would result in a loss of all MOMENTUM Wireless, and MOMENTUM True Wireless headphones) Fourth violation: SCH will cease supplying and discontinue the retailer’s authorization(s) to purchase for all MAP products in all product categories for a period of 90 days from the date of the cessation notice. Subsequent violations will result in additional action up to and including termination of Sonova Consumer Hearing USA, LLC dealer status. The offending dealer will receive notice of any action by SCH. In addition, upon any violation, SCH will, without prior notice, refuse to provide advertising co-op monies, reduce/eliminate DFI programs, refuse to provide sell through allowances, refuse to provide spot promotional allowances or refuse to continue to sell the MAP Product in question to any retailer who violates this MAP Policy. Any violations beyond the first violation are treated as a subsequent violation for purposes of this MAP Policy, whether the violation relates to the same MAP Products(s), variants or categories, and are not product specific. In addition, any advertising that, although in technical compliance with the terms of this MAP Policy, violates the spirit and intent of this MAP Policy (as reasonably determined by SCH) shall be deemed a violation of this MAP Policy. A continuation of the violation of this MAP Policy as stated in a cessation notice will be treated by Sonova Consumer Hearing USA, LLC as a subsequent violation of this MAP Policy, and the date of such subsequent violation shall be as determined by SCH. A violation of this Policy shall remain on record for one (1) year after the date of the cessation notice for such violation. How to Contact us regarding this Policy This MAP Policy is a unilateral statement of the terms upon which we are willing to market our products. No agreement is sought, nor will we accept any retailer’s agreement with this MAP Policy. We request that our retailers not attempt to discuss your own pricing, or the pricing of others, with us. If you so choose, you may email information about non-compliance with this Policy to MAP-CHB-Amer@sonova.com. However, please be advised that no Sonova Consumer Hearing USA, LLC representatives will contact you to acknowledge, respond or follow-up on what you report, nor will they discuss the enforcement of this Policy or pricing practices of other dealers or distributors with you. Territory covered This MAP Policy is applicable in the USA.