Minimum Advertised Trade Price Policy for Distributors

Nuheat is the industry leader in electric floor heating systems, offering effective room-specific heating for any space in the home. Combining luxury and energy efficiency, Nuheat provides an easy-to-install solution for heating tile, stone and laminate / engineered wood floors. Fully programmable and a viable alternative to baseboard heaters, Nuheat boasts a 25-year warranty and a dedicated customer care team.

Nuheat puts substantial resources into developing and marketing its products, and Nuheat wants to work through distributors who also market Nuheat products based on product qualities. Consequently, Nuheat has adopted this Distributor Minimum Advertised Trade Price policy. In the future, Nuheat will not deal with resellers that advertise Nuheat products at prices below our suggested trade pricing for those products.

  1. Policy: Nuheat distributors shall not advertise Nuheat products at prices less than Nuheat's Minimum Advertised Trade Price (MATP Price). The MATP Price is Nuheat's Suggested Trade Price as set forth in the current Nuheat Trade Price List, minus 5%. Thus, if the Suggested Trade Price is $500, the MATP Price is $475. Any advertising containing a price lower than the MATP Price is a violation of this policy, except that an advertised price rounded down to the next dollar (e.g., $499.99 rounded down to $499) will not constitute a violation.1 "Price" includes all price-related terms, such as discounts or percentages off, free premiums, rebates, and discount coupons for existing or future purchases.
  2. Scope: This policy applies to all forms of advertising including mailings, facsimiles, catalogs, displays at consumer exhibitions and shows, radio, television, and any and all other forms of advertising media, including, without limitation, the Internet and any other electronic network. Any price information relating to Nuheat products on an Internet website that can be accessed directly through any hypertext link or by any other method that uses the hypertext protocol (http) is considered to be advertising for purposes of this policy. Distributors are responsible for ensuring that their pricing is at or above the MATP Price on internet search engines. In addition, Distributors shall not sell or offer for sale any current Nuheat products via any Internet auction function.
    1. Broadcast e-mails are a form of advertising, and this policy applies to them. Emails sent in response to specific customer inquiries about identified products are not considered advertising.
    2. The price specified in the electronic "shopping cart" at "checkout" is not considered advertising. Language such as "Click ‘Buy' for Price" or "Click ‘Add to Cart' for Price," "Click for Price" or "Click for Quote" may NOT be used on the same website page on which a Nuheat product appears.
    3. Any Internet advertisements (i.e., all website pages above the "shopping cart" level) in which an Nuheat product appears must include a price, which must be no less than the MATP Price.
    4. Language such as "We Offer the Best Prices," "We Will Meet Competitors' Prices," or "Call for Price" may be used.
  3. Advertising shall not include language or graphics that state or suggest that Nuheat product is being promoted at a price less than the MATP Price. For example, it would violate the Policy to:
    1. Show the price of the Nuheat product with a slash line through it in a manner that states or suggests that the advertised offer is less than the MATP price.
    2. Advertise "$X off" or X% off' in a manner that states or suggests that the advertised offer is less than the MATP Price (i.e., unless MATP products are specifically identified as excluded from the offer).
      1. Advertise any Nuheat product as a "free" or "gift" item.
    3. Advertise a bundle including any Nuheat product in a manner that suggests that the Nuheat product is being offered at a price below MATP.
    4. Use language such as "Sale Price" or "New Low Price" or words such as "Subtract," "Less" or "Take Away," in a manner that states or suggests the advertised offer is less than the MATP Price.
    5. Include language such as "Price Too Low to Print."
  4. In-Store Advertising: This policy does not apply to in-store advertising, such as shelf-talkers, price tags, or window displays. This policy does not apply to products that Nuheat has sold as "close-out" merchandise.
  5. Actual Sales Price: This policy applies only to advertised prices, and does not relate to actual sales prices of any item. Nuheat does not seek any wholesaler's agreement on minimum selling prices, and no representative or employee of Nuheat is authorized to accept any such agreement from a Nuheat distributor.
  6. Enforcement: Nuheat will enforce this policy through its own staff and outside consultants and agents. Nuheat will unilaterally make all determinations relating to a violation of the MAP Policy in its sole satisfaction. There will be no warnings, threats, discussions, negotiations, or appeals.
  7. Mistakes: There are no exceptions to the policy. A distributor is responsible for its advertising, and Nuheat does not have the resources to determine whether a violation is intentional or accidental.
  8. Penalties: Nuheat will apply to appropriate penalty for each violation in its sole discretion. Penalties will include suspension of shipments on a mis-advertised product line; suspension of shipments of a broader class of products; suspension of all product shipments; or termination.
  9. Effective Date: This policy becomes effective April 15, 2010.
  10. Questions: Any questions about this policy should be directed, in writing, to Peter Thomson, Director of Sales, 3105 - 6900 Graybar Road, Richmond, BC, V6W 0A5 Canada or petert@nuheat.com.

1 Nuheat recognizes that resellers will sometimes advertise category-wide sales that do not explicitly or implicitly single out Nuheat® products.

 
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