U.S. SCHOOL DISTRIBUTOR NON-RETURNABLE TERMS OF SALE (Updated June 2020) Client publishers reserve the right to change terms of sale and prices at any time.

WESTMINSTER, MD WAREHOUSE: Distribution Clients: Base Discounts: Unless indicated otherwise, all discounts STATUTE OF LIMITATIONS: Any action for any breach of , Beacon Press, Blue Star, Charlesbridge, are listed as non-returnable, off-invoice discounts. Large contract by Penguin or other claim by Crooked Lane, Dark Horse, DC Comics, Eaglemoss, print titles follow the format discount. Some exceptions Customer against must be Hatherleigh, Holiday House, Kensington, Kodansha Comics, may apply to the discounts listed below. For discount commenced by customer within one (1) year after delivery Kodansha USA, Library of America, Melville House, Monacelli confirmation, please contact Customer Service. of product to customer. Press, National Geographic Adult, New York Review Books, A Penguin Random House Nobrow Ltd., North Atlantic Adult, Other Press, Quirk Books, ADULT DISTRIBUTOR DEFINITION: Distributor warehouses, sells, distributes, and effectively PRH Canada, Rizzoli, Sasquatch, Seven Stories, Shambhala, Hardcover (HC) 49% Smithsonian Press, Soho Press, Square Enix, Steerforth Press, merchandises books to retailers; carries ALL Penguin Trade Paperback (TR) 51% Titan, Verso, Watkins Media Group, Wizards of the Coast Adult Random House titles appropriate for their market as Mass Market (MM) 55% determined by Penguin Random House; distributes titles CRAWFORDSVILLE, IN WAREHOUSE: Distribution Clients: America’s Test Kitchen, Astra House Publishing, CHILDREN’S to meet on-sale dates and designated on-sale date periods as determined by Penguin Random House; Berrett-Koehler, Boyds Mills, Charlesbridge, Good Night Board/Level Readers/Trade Paperback/ Books, Hay House, Hearst Home Books, Highlights, Unjacketed HC1 55% honors all chain authorizations (where applicable); promotes titles in all sell pieces (catalogues, brochures, IDW Publishing, MIT Press, National Geographic Children’s, Digest 51% No Starch Press, North Atlantic Books, Parallax Press, direct mail, phone, etc.); guarantees at least 30 days on Library Bindings 35% Prestel, Search Press, Tiger Tales, Tundra Books, sale for titles; if teacher’s guides, bibliographies, etc. are Wizards of the Coast Children’s Jacketed Hardcover 51% made available to your customers, you must carry and Mass Market (MM) 55% distribute all such materials offered by Penguin Random House; must not charge for line listings/microfiche. Penguin Random House OTHER FORMATS, LINES (Alphabetical Listing) ORDERING INFORMATION: Audio (AU) 55% Any books transferred or sold to an affiliated (under any Audio (DN) 50% form of common ownership or control) retailer will be ...... (800) 733 - 3000 subject to RDC terms. Customer Service: Board Games 55% NR** Email: [email protected] Boxed games/DVD/Novelty In addition to meeting the basic Distributor Definition, a Fax:...... (800) 659 - 2436 (book & collectible set)/Miniatures 49% Non-Returnable School Distributor must also meet the following requirements: Credit: ...... (800) 726 - 0600 Calendars 60% Library Bindings 35% • Provides tools and resources to highlight & recommend

Mailing Address: Penguin Random House LLC titles for school classroom, book fair & school library Distribution Center Decks/Note Cards/Puzzles/Stationery 52% collections such as: curriculum tag titles to connect 400 Hahn Road PUBLISHER-SPECIFIC TOS FOR SELECT PRODUCT LINES educators with exemplary content, technology and Westminster, MD 21157 Astra House Publishing/Beacon/ support; In-house staff dedicated to assisting Attn: Customer Service Berrett-Koehler/LOA/MIT Press/Seven Stories/ educators, school librarians, media specialists, school Website: www.penguinrandomhouse.biz Shambhala/Verso: Academic & POD Titles 20% administrators; Prepares customized, regional book DC/Dark Horse Limited Editions 45% NR** lists correlated to specific curriculums; Creates main & It’s quick, easy, and available 24/7. You can place an order, look up a title, check order status, place claims for shortages/ DC Movie Editions 52% specialty catalogs; Maintains dedicated sales force calling directly on schools. damages, obtain a listing of the current managed titles, and IDW Artist’s Edition 40% NR** retrieve an invoice. Register your account today to learn more. Kodansha USA/Nat Geo/Prestel Travel 51% • 100% of the business services the classroom, book fair & school library market. Note that sales for public Other Press/ libraries do not qualify for these terms of sale. ELIGIBLE TITLES: Note that these terms are for Smithsonian Professional & Academic 40% Penguin Random House Publisher Services distribution Rizzoli Limited Editions 45% NR** LIMITATION ON WARRANTIES: Except as provided in any clients. Separate terms documents are available for warranty expressly provided by Penguin Random House, Penguin Penguin Random House publishers. Rizzoli Promotional (HC & TR) 53% Random House does not make or give, and expressly disclaims, **NR = Non-returnable. all other warranties, representations, guarantees, or other FREIGHT: All formats will ship free freight on outgoing conditions of any kind, express or implied, including warranties as orders to established trade accounts. Initial shipments do to performance, merchantability, or fitness for a particular CREDIT CARDS: Penguin Random House accepts Visa, not combine with reorders. Customers requesting expedited purpose, and warranties arising by statute or otherwise, or from Mastercard, Discover, American Express only at the time a course of dealing or usage of trade. freight will be responsible for any additional charges. the order is placed. LIMITATION OF DAMAGES AND OTHER LIABILITIES: The $200 retail value for reorders, SHIPMENT MINIMUM: PAYMENT TERMS: 90 days End of Month from invoice aggregate cumulative liability of Penguin Random House, and its affiliates under common control with it, directors, officers, $100 retail value for initials. All publishers and formats will date. Payments, in the form of checks, money orders, or combine to meet the shipment minimum within each employees, representatives and agents, for all claims by funds transfers, are due at the Penguin Random House customer, notwithstanding the form in which any such action is warehouse. Shipments that do not meet the minimum bank by the last banking day of the month due (excludes brought, whether in contract, tort (including negligence), or will not leave the warehouse and will backorder for up to Sat & Sun). In the event of non-payment, the account is otherwise, shall be limited in the aggregate to the total amounts 90 days, in order to combine with other orders. Once a responsible for any late fees, finance charges, collection paid by the customer to Penguin Random House under the combination of orders exceeds the minimum retail value, fees and/or legal fees incurred. applicable invoice. Penguin Random House shall not be liable for it will be shipped. any consequential, incidental, indirect, special, exemplary or punitive damages, third party claims, loss of revenues, loss of VENDOR COMPLIANCE: Penguin Random House will SHORTAGES/DAMAGES POLICY/CLAIMS: At time of profits or loss of savings even if advised of the possibility of such not pay or accept vendor non-compliance chargebacks. damages and regardless of the form in which any action is order receipt it is the customer’s responsibility to check All purchase orders are accepted and shipped subject to brought, whether in contract, tort (including negligence), or for carton or pallet shortages or signs of damage. The Bill the terms and conditions of Penguin Random House’s otherwise. Of Lading will clearly indicate the number of cartons/ terms of sale. pallets to be received. Penguin Random House will honor GOVERNING LAW: These Terms of Sale shall be governed and construed in accordance with the laws of the State of New York, “subject to count” claims only if the bill of lading is signed, BUSINESS BLENDS: Business Blend percentages are required and any action, claim, litigation or dispute resolution process dated and all claims are reported to Penguin Random by all distributors to represent their business breakdown brought to enforce these Terms of Sale shall be commenced and House Customer Service within 10 days of receipt of among sales to bookstores, mass merchandisers, and adjudicated in the state or federal courts in New York County, product. If a shortage/damage is discovered please call schools/libraries. This business blend is used to calculate New York. Customer Service. All claims by customer with respect to coop pools. There will be an audit and update of the business NO ASSIGNMENT: The customer may not assign its rights or Penguin Random House product purchased by customer, blends between bookstore and non-bookstore business once delegate its duties or obligations under these Terms of Sale including, without limitation, shortage, damage and all a year in October to be applied to the following fiscal year. without the prior written consent of Penguin Random House. other claims, must be made in writing and received by Any attempt to make such an assignment or delegation without Penguin Random House Customer Service within ten (10) CONFLICT WITH CUSTOMER TERMS: No modification or written consent will be void. days of customer’s receipt of product. waiver of any of these Terms shall be enforceable, unless agreed to in writing by Penguin Random House. To the extent LIMITATION ON SETOFF BY CUSTOMER: All amounts owing by the customer to Penguin Random House shall be due without that any discrepancy exists between these Terms and those of CREDIT: Shipments will be made to all accounts in good any setoff, counterclaim or recoupment or other similar rights the credit standing, as determined by the Penguin Random any sales quotation, purchase order, or other document customer may have against Penguin Random House. House Credit Department. In addition, accounts must received from the customer, these Terms shall control. ATTORNEYS’ FEES: Should customer fail to make timely also be in good credit standing to participate in any payment of any amount due to Penguin Random House and promotional offers and to receive any incentive payments, legal action becomes necessary to collect such amount, Penguin rebates or allowances, including without limitation, Random House shall be entitled to recover from customer all cooperative advertising allowances. costs incurred in connection with such action, including Penguin Random House’s attorneys’ fees and expenses.