IELLO Adopts Minimum Advertised Pricing Policy, While CMON Limited Updates Theirs

Today, May 24, CMON, Inc. announced it has adopted a unilateral Minimum Advertised Pricing Policy (MAPP) that will go into effect on June 1, 2017. Along with the new policy, CMON has restructured its existing hobby distribution network in the U.S. effective immediately. By unilaterally imposing restrictions on minimum prices advertised by CMON's new distribution network and retail partners, CMON products' perceived value in the customers' eyes will be enhanced, which is in the best interest of consumers and CMON's partners.

With the adoption of the unilateral MAPP, CMON has restructured their U.S. hobby distribution network to ensure efficient and effective distribution of their products to consumers in accordance with the new policy. As of May 24, 2017, the current hobby distributors CMON is working with include Alliance Game Distributors, ACD Distribution, and Peachstate Hobby Distribution (PHD).

The CMON MAPP will only apply to CMON branded products within the U.S., and products with a Minimum Advertised Price will appear on the current MAPP price list hosted on CMON.com. Adherence to the MAPP is non-negotiable for CMON product resellers, and will be strictly enforced by CMON to ensure the CMON brand maintains a high value in the consumer mindshare.

A copy of the CMON MAPP will be available at CMON.com/mapp and the CMON MAPP price list will be available at CMON.com/mapp-prices.

IELLO acknowledges and understands that its current and continued success is directly related to the success of its network of authorized dealers (including without limitation all IELLO distributor, wholesale, and retail customers that resell IELLO products to consumers, known herein as "Vendors"). IELLO also recognizes and understands that its Vendors take great pains to deliver a first class experience to their customers, and IELLO desires to support its Vendors in furtherance of achieving their goals by protecting its image and reputation, promoting its brand and providing excellent resources that are key to maintaining the hobby culture for game enthusiasts. Therefore, it is in the interest of both IELLO and its Vendors to protect the Vendors’ ability to continue to provide an outstanding experience and exemplary service to their customers. In furtherance of the aforementioned dual interest, IELLO believes that it is also in the best interest of both IELLO and its Vendors to discourage advertising practices that would be detrimental to the service and support efforts of our Vendors. As a result, IELLO has developed and put into force this Minimum Advertised Price Policy ("MAPP") on a UNILATERAL BASIS. This MAPP shall in no way be considered or construed to be an agreement (or to create any contract) with or between any Vendor or other person or entity, and shall only apply to advertised pricing. It is in no way meant to regulate actual sales prices whatsoever.

The decision to comply with this MAPP is left up to each individual Vendor, and if they choose to comply, all such Vendors are solely responsible for maintaining compliance with IELLO's MAPP. IELLO reserves the right, in its sole and absolute discretion, to suspend or discontinue selling Products (and otherwise discontinue doing business with) any Vendor that: (i) advertises any Products covered by this MAPP at a price in contravention of this MAPP; or (ii) takes any other action whatsoever in contravention of this MAPP.