MUSICMAKER S INSTRUMENTS, LLC N 61 ST Street Court PO Box 2117 Stillwater, MN 55082

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1 MUSICMAKER S INSTRUMENTS, LLC N 61 ST Street Court PO Box 2117 Stillwater, MN Phone: (651) Fax: (651) info@harpkit.com Dear Prospective Dealer, Thank you for inquiring about our dealer program. We have put a lot of thought into this program in an effort to make it easy to understand and accessible to a wide variety of prospective dealers. Over the years, a good many small music businesses have gotten started as a result of our dealership program. I hope you succeed in your venture! Please read over the enclosed "Dealership Program Guidelines" to see if you are comfortable with all aspects of it. Don t hesitate to call or write if you have any questions about this program. Sincerely, Jacob Nelson Owner

2 1. DEALER REQUIREMENTS DEALERSHIP PROGRAM GUIDELINES a. If you wish to become a DEALER for Musicmaker s instruments, you must meet our INITIAL ORDER REQUIREMENT to get started. You will notice in item #2 below that we have a graduated scale of quantities required, according to the retail prices. That means a teacher who wants to obtain the best discount on thumb piano kits for a class project will need to order at least 24 of those kits to qualify. A harpmaker wanting to get started in business, on the other hand, will only need to purchase 4 Limerick Harp kits to get started as a dealer. We think this is fair to all. Please note, however, that blueprints, hardware packs, and other accessories do not qualify as part of your INITIAL ORDER. b. Once you have met the INITIAL ORDER REQUIREMENT, you may make smaller followup orders at dealer prices (no minimum), as long as you remain an active dealer. These orders can be for any merchandise, including hardware parts and accessories. c. To keep your dealership status active, you must simply order at least $500 of any merchandise from Musicmakers per calendar year. If you fall below that amount of annual activity, you simply need to meet the INITIAL ORDER REQUIREMENT again to renew your dealership status. 2. INITIAL ORDER REQUIREMENT MUSICMAKER S INSTRUMENTS, INC requires an initial order of sufficient quantity to qualify for dealer pricing. Price Group Retail Price of Instrument Quantity Required for Initial Dealer Order Group 1 $0.00 to $ Group 2 $50.00 to $ Group 3 $ to $ Group 4 $250 to $ Group 5 $500 to $ Group 6 $1, Your initial order must include the required quantity from at least one price group. You may order a mix of instruments within that group to get your quantity, but only musical instruments (kits and/or finished) will count toward your initial quantity requirement.

3 3. PRICING AND SELLING a. MUSICMAKER'S INSTRUMENTS, LLC competes with its dealers by direct mailorder marketing around the world. Occasional sale prices advertised for the public retail trade do not affect the dealer pricing unless the sale price is lower than the standard dealer discount (e.g., clearance sales). b. DEALERS may set their own retail prices, print their own brochures, run special promotions and advertising campaigns, offer customer payment terms, rental programs, and so forth, as they choose. c. MUSICMAKER'S INSTRUMENTS, LLC does not guarantee any sovereign "territory" or exclusive product line to any DEALER. d. MUSICMAKER'S INSTRUMENTS, LLC reserves the right to adjust prices at any time. 4. DISCOUNTS AND TERMS a. MUSICMAKER'S INSTRUMENTS, LLC offers a 25 percent dealer discount on items manufactured in its company workshop. The dealer discount is calculated on the regular retail price shown in the current Musicmaker s catalog, not on special sale prices. Other accessories, such as books, tapes, CD s, Videos, DVD s, etc. may have less of a discount, depending on our costs. b. All orders must be prepaid. We accept VISA, MASTERCARD, DISCOVER, and AMERICAN EXPRESS, as well as PAYPAL to info@harpkit.com. 5. SHIPPING AND HANDLING a. Our minimum shipping and handling charge for dealer orders will be $8.00. b. In most cases, our standard shipping charges will apply. c. When necessary, additional shipping may be required. d. Drop shipping is available within the United States for an additional $5.00 charge. 6. MINOR ADJUSTMENTS a. MUSICMAKER'S INSTRUMENTS, LLC attempts to provide sufficient instruction with its kits for successful completion. Assembly instructions are updated regularly as errors are discovered or changes are made to the product.

4 b. Finished instruments shipped from the factory will be fully strung and tuned prior to shipment, and will include basic instructions for tuning and changing strings. c. Instrument kits (unassembled) will include all wood parts, hardware and strings for completion, but generally do not include glue, finishing materials, tools, or other accessories listed separately in our catalog (such as cases, books, decorative inlays, rosettes, sharping levers for harps, etc.). 7. WARRANTIES a. MUSICMAKER'S INSTRUMENTS, LLC guarantees the quality of kit parts, providing free repair or replacement of any defective parts for a period of one year from the date of purchase. b. MUSICMAKER'S INSTRUMENTS, LLC cannot promise to replace parts to fit kits older than one year, due to product changes, and will not accept returns of any obsolete or discontinued products older than one year. c. MUSICMAKER'S INSTRUMENTS, LLC guarantees the quality of all finished instruments constructed at its factory, providing free repair or replacement of any defective instrument for a period of five years from the date of purchase. d. Warranty work will be accomplished by the factory on a priority basis so as to minimize the time that a customer is without an instrument. e. MUSICMAKER S INSTRUMENTS, LLC will not be responsible for the costs of packing and shipping of instruments for warranty work. f. DEALERS who build instruments from our kits or plans are responsible for guaranteeing their own workmanship. g. Loaner instruments are not available from MUSICMAKER S INSTRUMENTS, LLC during the repair period. 8. REFUNDS AND EXCHANGES a. Any product returned for refund or exchange must be handled through the DEALER who sold the product. b. All returns to MUSICMAKER'S INSTRUMENTS, LLC will be processed and refunded at the prices paid. c. If a product was purchased from MUSICMAKER'S INSTRUMENTS, LLC as a kit, it will be refunded as a kit, regardless of how much work the customer or DEALER may have invested in it. MUSICMAKER'S INSTRUMENTS, LLC will

5 not reimburse any customer or DEALER for labor of any kind, unless previously arranged and approved.