American Darling’s Unilateral Pricing and Internet Sales Policy

 As an American Darling LLC (“AD”), Leather Sophistication (LS) - DBA Spaghetti Western and DBA-O’hlay Bags Authorized Retailer, you are being provided with the following Unilateral Pricing and Internet Sales Policy. By being an Authorized Retailer, you expressly acknowledge these policies and understand that failing to comply or adhere to these policies may result in your Authorized Retailer account being unilaterally terminated by AD and LS.

 These policies, for AD and LS goods sold in retail locations or over the Internet, is intended to keep and maintain a minimum standard of quality and integrity over the AD and LS brand. AD and LS recognizes the time and resources our Authorized Retailers expend to deliver the highest quality customer experience and goods to those customers. These policies help sustain these necessary investments by you and AD and LS by minimizing intra-brand dilution and pricing conflicts amongst our Authorized Retailers. These policies detail what is permitted, and what is not, as it relates to our Authorized Retailers’ Internet sales and advertised pricing.

 Pricing Policy

 It is AD’s and LS’s suggested policy that Authorized Retailers set and maintain an advertised selling price of at least 2.40 times the wholesale cost of each good purchased from AD and LS. By way of example, if an Authorized Retailer purchases a good from AD and/or LS for $10.00 USD, wholesale, the minimum advertising price should be at least $24 USD, which represents a 2.4x multiple of the wholesale price.

You can apply sales or discounts, but the minimum advertised selling price should reflect at least 2.40 times the wholesale price, after any discounts or percentages off the sale. This Pricing Policy applies to all AD and LS goods sold and delivered to Authorized Retailers.

 Internet Selling Policy

 Authorized Retailers may not list for sale AD and LS goods on Internet platforms including, but not limited to, Amazon, Etsy, eBay, Facebook Marketplace, Mecari, OfferUp, Depop, Shpock, StockX, Craigslist, Tradsy, Chairish, Curtsy, LetGo, Carousell, Vinted, Walmart, Target, AliExpress, Buy.com, Jet.com, Newegg.com, Overstock.com, Rakuten.com, Wish.com and any other similar or like resale, classifieds or “destash” website, platform, or service.

 However, AD’s and and LS’ Authorized Retailers may elect to setup and sell through a virtual store. Authorized Retailers may setup and operate a customized website to goods, purchased from AD and LS at wholesale, to customers through an Internet storefront, using an authorized platform, such as Shopify, Squarespace, or Wix. All AD and LS Authorized Retailer Internet storefronts must be owned, operated, and controlled by the Authorized Retailer.

 Professional Retail Environment Policy 

AD and LS expects that the AD and LS goods are displayed in a professional retail environment, such as a stand-alone brick-and-mortar store front, a storefront in a strip shopping center, shopping mall store front, shopping mall vendor stall. Professional retail environments preferably include being well-lit, having organized displays, and proper tagging/signage for AD and LS goods. AD and LS reserves the right to inspect Authorized Retailers’ professional retail environments and identify improvements to the displays or other environmental factors that may affect the marketability of the AD and LS goods.

 Failure to adhere to these Policies may result in the Authorized Retailer’s account being unilaterally terminated by AD and LS with no resource or exceptions. AD and LS sales representatives, agents, and employees are not permitted to discuss these Policies, make exceptions, or make any agreements or assurances with respect to these Policies. AD and LS reserves the right to update, supplement, or amend these Policies at any time.