Minimum Advertised Price Policy 2015

Introduction

Kahuna Creations Inc. is proud to deliver best-in-class board-riding products.
Our dealers invest time and resources to deliver extraordinary customer experiences. To support our resellers’ efforts, Kahuna Creations is establishing policies that help resellers earn profits necessary to maintain their high level of customer excellence.

To protect the investment of our dealers and Kahuna Creations’ brand reputation, we have adopted a Minimum Advertised Price (“MAP”) Policy. Kahuna Creations established this MAP Policy due to the fact that reseller advertising and sales practices promoting Kahuna Creations products primarily on the basis of price could be detrimental to resellers’ service and support efforts and Kahuna Creations’ competitive position. Such activities can be harmful to Kahuna Creations’ brand, reputation and competitiveness and allow some resellers to take advantage of the service and support efforts of others. Kahuna Creations believes that these practices are unfair and discourages such efforts.

Effective immediately, Kahuna Creations, in its unilateral discretion, will not do business with any reseller if that reseller intentionally publicly advertises any product above a 15% discount of MSRP price. Kahuna Creations is confident that this program will strengthen its competitiveness and benefit all its resellers.

Official Policy and Guidelines

Additional guidelines related to this MAP Policy are as follows:

  1. Kahuna Creations reserves the right, in its unilateral discretion, to take other action with respect to any reseller that violates this MAP Policy.
  2. The MAP Policy will be enforced by Kahuna Creations in its sole discretion.
  3. Kahuna Creations recognizes that any authorized Kahuna Creations account can make its own decisions to advertise and sell any Kahuna Creations product at any price it chooses without consulting or advising Kahuna Creations. Kahuna Creations similarly has the right to make its own independent decisions, at any time, regarding product allocations and reseller participation as a member of the Kahuna Creations Authorized Reseller Program.
  4. All Products have a MAP retail price of 15% below MSRP. Listing a price other than the MAP retail price next to the featured MAP Product in any advertising will be viewed as a violation of this MAP Policy. This MAP Policy applies to web based advertisement of MAP Products in any and all media, including, without limitation, internet or similar electronic media including websites such as eBay, Amazon (or similar), Google Ads (or similar). Such website features as “Click for price”, automated “bounce – back” pricing e-mails, pre-formatted e-mail responses, forms, automatic price display for any items prior to being placed in a customer’s shopping cart, and other similar features are considered to be communications initiated by the reseller (rather than by the customer), and this constitutes “advertising” under this MAP Policy. This MAP Policy also applies to any activity which Kahuna Creations determines, in its sole discretion, is designed or intended to circumvent the intent of this MAP Policy, such as solicitations for ‘group purchases’ and the like.
  5. Direct Marketing. It is allowable to email customer bases special discounts that exceed MAP pricing so long as the discounts are not made generally available to the general public. Such direct marketing to the retailers own customer email list or promotions from the retailer’s own Facebook account is allowable and not susceptible to MAP conditions.
  6. From time to time, Kahuna Creations may permit resellers to advertise MAP Products at prices lower than the MAP retail price. In such events, Kahuna Creations reserves the right to modify or suspend the MAP retail price with respect to the affected products for a specified period of time by providing advance notice to all resellers of such changes.
  7. Although resellers remain free to establish their own resale prices, Kahuna Creations reserves the right to cancel all orders and indefinitely refuse to accept any new orders from any resellers following Kahuna Creations verification that such reseller has advertised any MAP Products at a net retail sales price less that the then-current MAP retail price established by Kahuna Creations, or if reseller has violated this policy in any other way.
  8. Kahuna Creations’ sales representatives are NOT permitted to discuss this Policy or make any agreements or assurances with respect to Kahuna Creations’ Policy regarding reseller advertising or pricing.