DEMDACO's MAP POLICY

DEMDACO does not, and never will, seek any agreement from an Authorized Retailer that sets minimum resale prices when such agreement is contrary to applicable state or federal law. DEMDACO does not, and never will, seek any agreement from an Authorized Retailer that sets minimum resale prices. In accordance with applicable legal rules, we advise DEMDACO® Retailers that in accordance with our internal, unilateral policy, DEMDACO may decide not to deal with Retailers that sell the DEMDACO or Willow Tree® line at retail prices below the Suggested Retail Price (SRP).

Retailer must review and understand the detailed DEMDACO® Minimum Advertised Price (MAP) Policy. In accordance with applicable legal rules, and in accordance with our internal, unilateral, policy, DEMDACO has set, and from time to time may exercise its independent business judgment to revise, its Minimum Advertised Price (MAP) policy, as posted on our DEMDACO Retailers website (subject to revision in our business judgment), including but not limited to revisions in one or more products or product lines for specific promotional periods, addressing seasonal changes in product demand, excess inventory issues, or other marketing considerations. In many situations, Demdaco may reflect other approaches appropriate to specific products and market factors such as those described above. DEMDACO's day-to-day MAP may be revised by DEMDACO to reflect other marketing strategies consistent with our overall strategy. Where retailers decide to advertise our Willow Tree® line or other DEMDACO products in a manner that is inconsistent with our retail policy, we may exercise our right not to make further sales to that account. When such decisions are made, they are not subject to any negotiation or modification. Please note that no DEMDACO Account Executive is authorized to discuss or comment on any aspect of this policy or any decision made in connection with this policy.