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H2O Audio’s Dealer Policy
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March 9th, 2009
Dear Authorized Reseller,
As the leading innovator in waterproof headphones & accessories for iPods, iPhones, and mp3 players, we here at H2O Audio are proud of our role in bringing music to watersports. We have empowered swimmers, triathletes, surfers, paddlers, wakeboarders and other athletes with an unparalleled musical experience.
We also recognize that our high-quality dealers continue to invest resources and time to deliver an extraordinary customer experience through knowledgeable staff and compelling vendor presentation. In turn, we are committed to developing and delivering performance products that generate strong consumer interest and incremental profits.
To protect the investment of our high-quality dealers and H2O Audio's recognized brand reputation for premium performance products, H2O Audio has unilaterally adopted an ADVERTISING, DISTRIBUTION AND E-COMMERCE POLICY ("Policy"). All Authorized H2O Audio dealers should be aware of this Policy and our guidelines stated in this policy with respect to E-Commerce.
The details of this Policy follow below. H2O Audio retains complete sole discretion whether and to what extent it is willing to have its products sold by any particular reseller. H2O Audio does not ask for nor accept that any reseller will comply with this Policy, and nothing in this Policy is intended to be, or construed as, an agreement regarding the minimum prices at which you will advertise or resell H2O Audio products. You must determine, in your sole discretion, the price at which you will sell H2O Audio products.
H2O Audio reserves the right to unilaterally modify, change or update its Policy at any time and without notice. The Policy is posted at the following website: www.h2oaudio.com. It is your sole responsibility to access this website periodically to review the current terms of H2O Audio's Policy, as it is modified from time to time.
H2O Audio is committed to providing high-performance waterproof products that deliver an unique musical experience in watersports – and incremental profitability for our dealer network. Together, we have begun to establish a strong, loyal community of athletes passionate about the inspirational power of music in any element.
Thank you for your continued support.
Best Regards,
Jerry T. Yen
VP of Sales & Marketing
H2O Audio
H2O Audio Advertising and E-Commerce Policy
Advertising
- H2O Audio will maintain an updated "MAP PRODUCTS" list of those products that will fall under this Policy. H2O Audio reserves the right to update or modify this list at any time.
- All Products listed will have a MAP retail price. The MAP retail price must be listed next to the featured MAP PRODUCT in all advertising. This includes any website or other information distribution method that solicits consumer interest in a listed MAP PRODUCT. H2O Audio reserves the right to approve any advertising or other means of consumer information that solicits interest in the listed MAP PRODUCTS. H2O Audio may elect not to continue to supply products in the future to Dealers who use phrases such as "Will not be undersold", "Will beat any price", "Guarantee lower price", or other similar phrases in any media in conjunction with any of H2O Audio's MAP PRODUCTS.
- Any posting or advertisement to sell H2O Audio's current MAP PRODUCTS through the use of any "auction" site or related method of re-distribution (e.g. eBay, Yahoo auctions) will be viewed as a violation of this policy.
- H2O Audio reserves the right to determine the allocations for all products for any dealer–at any time.
- H2O Audio recognizes that any authorized H2O Audio account can make their own decisions to sell any H2O Audio at any price they choose without consulting or advising H2O Audio. H2O Audio reserves the right to make its own independent decision regarding product allocations and dealer participation as a member of H2O AUDIO'S distribution network – at any time.
- H2O Audio's sales representatives are NOT permitted to discuss this policy or make any agreements or assurances with respect to H2O Audio's policy regarding Advertising, Distribution, or E-Commerce. This also includes any consumer program or promotion that affects the attached listed MAP PRODUCTS.
Any questions regarding this policy or any aspect of this policy should be addressed to the Marketing Department at H2O Audio's Corporate Offices in San Diego, CA or to marketing@h2oaudio.com.
Distribution
Any sale or distribution in the United States of H2O Audio Products beyond the direct-to-consumer retail model may be deemed "Re-Distribution". This is a violation of H2O Audio's distribution guideline. H2O Audio reserves the right to make its own independent decision regarding allocations or specific dealer's status as part of H2O Audio's distribution network, if H2O Audio determines that a dealer has engaged in Re-Distribution of H2O Audio's products.
E-Commerce
H2O Audio has established the following E-Commerce Guidelines for any dealers that wish to sell H2O Products via the internet. This includes any dealer who uses the internet to advertise H2O Audio's products, as well as any dealer who uses the internet to solicit any consumer or other interest in H2O Audio's products. Those wishing to sell H2O Audio products via the internet must be an approved E-Commerce Partner as set forth in the E-Commerce Guidelines. H2O Audio discloses that it intends to limit the number of authorized E-Commerce Partners, as E-Commerce Partners do not generally provide the grassroots services necessary to cultivate the brand and product loyalty that H2O Audio desires to achieve.
E-Commerce Guidelines
- E-Commerce Partners must maintain "Shopping Cart" technology for full consumer transaction completion and approval/verification on-line for all products at any time by any consumer. This includes providing an approved, secure consumer site for all transactions and ensuring consumer privacy and fraud protection.
- E-Commerce Partners must have and approved product presentation site and consumer education information must be available for each product listed on the site. THIS INCLUDES, BUT IS NOT LIMITED TO: a full graphic image of the product; H2O Audio's specifications on each product listed; and explanation of key H2O AUDIO performance technologies. This will serve to enhance the consumer experience for H2O Audio products, as well as maintain the integrity of H2O AUDIO'S premium products. "Linking" to the H2O AUDIO website for specifications, graphic images, or other basic consumer education information that H2O AUDIO deems necessary to sell H2O AUDIO products online is prohibited. Downloading this information from the H2O AUDIO DEALER WEBSITE IS PERMITTED. ANY ALTERATIONS MUST BE APPROVED PRIOR TO USAGE.
- E-Commerce partners must have the capability for email and consumer information retention, as well as the capability to distribute email information to their consumer database. To this end, each E-Commerce Partner must work with H2O Audio to announce and/or feature designated products agreed to by both E-Commerce Partner and H2O AUDIO.
- E-Commerce Partners must be in good financial standing and not in violation of other H2O AUDIO'S policies.
- E-Commerce Partners must commit to agreed upon inventory levels on all H2O AUDIO products that are considered "in-line".
- E-Commerce Partners must commit to a minimum level of total business, to be determined on a year to year basis. If an E-Commerce Partner fails to meet the minimum level of business, H2O AUDIO reserves the right to remove its account as an approved E-Commerce Partner.
- H2O AUDIO reserves the right to approve any website or any H2O AUDIO authorized dealer with regards to these listed E-Commerce Guidelines, or H2O AUDIO'S own expectation of product presentation and the consumer experience on any E-Commerce Partner's online store.
Any questions regarding this policy or any aspect of this policy should be addressed to the Marketing Department at H2O Audio's Corporate Offices in San Diego, CA or marketing@h2oaudio.com.
MAP List
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