NIKE NORTH AMERICA DISTRIBUTION REQUIREMENTS

IT IS A NIKE STRATEGIC PRIORITY TO MANAGE THE MARKETPLACE AND ELEVATE THE BRAND ACROSS NORTH AMERICA. TO ACCOMPLISH THIS OBJECTIVE, WE ENFORCE DISTRIBUTION ACCORDING TO THE FOLLOWING POLICY:

DISTRIBUTION OPTIMIZATION: Distribution decisions are made on a case by case basis, to place the right products in the right place at the right time. Nike reserves the right to revisit any distribution decision at any time.

BRICK AND MORTAR: Accounts authorized for brick and mortar distribution may only sell Nike products from approved store locations and under store names approved in advance by Nike.

DIGITAL: Approvals for Authorized Digital Stores are separate from Brick and Mortar .Authorized Digital Stores may sell products online ONLY from the authorized website address (URL) and any corresponding mobile application identified in their account application, for delivery in the U.S.A. (including territories, APO, FPO, and DPO), or Canada, respectively. Accounts authorized for Brick and Mortar distribution are NOT pre-approved to sell Nike products online; accounts may not deliver orders internationally without prior written approval.

DIGITAL GUIDELINES: Authorized Digital Stores may NOT link to any transactional URL, or allow any transactional URL (commercial shopping portal, online marketplace, etc.) to link to the authorized URL. Authorized Digital Stores may link to, or provide data feeds to, URL’s which bring together images and information about merchandise provided they do NOT conduct sales transactions.

UNAUTHORIZED TRADE: Transshipping and gray market trade hurt our distribution, undermining our business and that of our retail partners. Accounts may only sell Nike Products to retail consumers for personal use. Sales to other retailers, jobbers, distributors, brokers, or any other person where an Account knows (or reasonably should know) that the products are likely being purchased for resale, are prohibited.

ENFORCEMENT: We actively monitor compliance with Nike distribution objectives, leveraging our sales team in the field, online sales monitoring tools, and emerging marketplace management technology. Where non-compliance is discovered, Nike will take appropriate and proportional steps to manage distribution, including (but not limited to) adjusting or canceling orders, managing assortment and product allocations, and closing accounts.

TERMS AND CONDITIONS: This policy supplements the Nike USA, Inc. and Nike Canada Corp. Terms and Conditions of Sale signed by accounts prior to authorization and posted on Nike.net. Nike’s relationship with all retail partners is predicated on compliance with the applicable Terms and Conditions.

Rev. May 2020