Minimum Advertised Price (“MAP”) Policy

MAP PRICE

Rost Martin MAP is $429.

SUMMARY

Rost Martin, LLC (“Rost Martin,” “we,” or “our”) produces high quality firearms products. Advertising and promotional activity are necessary for customers to accurately evaluate the value of firearms products produced under our brand based on our products’ quality. Both we and our distributors and retailers, including catalog and internet retailers (collectively, “Resellers”), actively invest in the advertising and promotional activity necessary to build our brand’s integrity.

To protect our brand integrity and protect the investment of our resellers, we institute this Minimum Advertised Price Policy (“MAP Policy”). The MAP Policy applies to advertising activities performed by Resellers who resell Rost Martin products to customers in the United States. This MAP Policy ensures advertising focuses on our products’ features, benefits, specifications, and qualities. This ultimately benefits both Rost Martin and our Resellers by guaranteeing that customers perceive the true value of our products when making purchasing decisions.

MAP DEFINITION AND APPLICATION

This MAP Policy sets forth the lowest price that an authorized Reseller may advertise in any form of advertising, including, but not limited to internet (including “add to cart” pages), print, direct mailing, radio, group or “broadcast” email, and all other forms of pricing advertisement. Advertisements directed to consumer buying clubs are also captured by the MAP Policy.

This MAP Policy does not affect or restrict the price at which an authorized Reseller actually sells our products. Our authorized Resellers are free to sell products at whatever price they may choose. Each Reseller is expected to independently determine the price at which it sells covered products to consumers. Instead, the MAP Policy addresses advertised prices outside of brick-and-mortar retail establishment and internet pricing outside of a buyer’s “shopping cart.”

The MAP Policy does not apply to any direct request for pricing made by an individual prospective purchaser to a Reseller in person or through other deliberate action. Direct requests for pricing by individuals are considered to be a request for a price quotation from the prospective purchaser to the Reseller. On a website, this would occur only when the prospective purchaser indicates an intention to purchase by going to the cart, “checkout” page, “purchase now” page or equivalent page. Prices displayed on the “checkout” page, “purchase now” page or equivalent page are also not considered advertising for purposes of the MAP Policy. The MAP Policy is not applicable to password-protected (log-in) sites.

The MAP Policy is not applicable to any in-store advertising that is displayed only in a physical store location. Instore displays, point-of-sale signs, hangtags, barcodes, QR codes or similar marks on products or product packaging which present the price are not considered “advertising” for purposes of this MAP Policy.

COVERED PRODUCTS

The MAP Policy applies to all products for which a MAP is specified on list distributed by Rost Martin (the “MAP List”).

Rost Martin will periodically send an updated MAP List to Resellers. To ensure that we have your most up-to-date email address, please send your company’s name with all aliases to [email protected].

A copy of this MAP Policy and the current MAP List may be viewed on our website at www.RostMartin.com/MAP

EXAMPLE VIOLATIONS

Some examples of MAP Policy violations include but are not limited to:

• Showing the price of the covered product with a slash line through it in a manner that states or suggests that the advertised offer is less than the MAP.
• Offering an instant rebate or “$X” or “X% off” in a manner that states or suggests that the advertised offer is less than the MAP (unless covered products are specifically identified as excluded from the offer).
• Offering any covered product as a free or gift item, e.g., “free with purchase.”
• Offering any covered product or service as an added-value promotion, unless authorized by Rost Martin.
• Using language such as “sale price” or “new low price” or words such as “subtract,” “less” or “take away” in a manner that states or suggests the advertised offer is less than the MAP.
• Including language such as “price too low to print.”
• Offering a discount for using a certain type of credit card.
• Offering to pay sales tax on a covered product advertised at MAP price.

MAP DISCLOSURE OR UNDERCUTTING PROHIBITED

The wording “minimum advertised price,” MAP Price,” and/or “MAP” or similar references to the MAP Policy shall not appear in any advertisement, quotation, or communication. Advertisements are permitted to invite shoppers to request a price quotation by including one of these phrases: “Call for price”, “Request a Quotation”, “E-mail My Price”, “Login for Price”, or “Add to Cart for Price.”

PROMOTIONAL PRICING AND DISCONTINUED PRODUCTS.

From time to time, we may conduct promotions for products covered by the MAP Policy. In such events, we reserve the right to modify or suspend the MAP with respect to the promotional products by notifying authorized Resellers of such promotions. Rost Martin further reserves the right to adjust the MAP with respect to all or certain products in its sole discretion upon written notice to authorized Resellers. Written notification includes e-mails sent by Rost Martin and updates to the MAP List published on our website. Upon the Company’s prior written notification, authorized Resellers may advertise such products consistent with the written notification. We may also suspend or eliminate MAP pricing on discontinued products in our discretion, upon notice to its authorized Resellers.

The MAP Policy does not apply to products discontinued by Rost Martin, refurbished products, closeouts, demonstration or other refurbished or used products.

MAP ENFORCEMENT

Rost Martin will monitor compliance with this MAP Policy. Our enforcement process allows immediate correction of errors, with subsequent penalties for delays or repeated violations. The consequences are targeted at the violator, and are not intended to penalize the purchaser. In the event a violation is determined, the following actions will be taken:

1. First Violation: The Reseller will be contacted in writing and allowed 24 hours to comply with the MAP Policy. If correction is made, the violation is recorded, but no penalties will apply. If the violation is not corrected within 24 hours, then the Reseller will be notified in writing and a second violation will be recorded.
2. Second Violation: The Reseller will be contacted in writing and allowed 24 hours to comply with the MAP Policy. If correction is made, the violation is recorded, but no penalties will apply. If the violation is not corrected within 24 hours, then the Reseller will be notified in writing and a third violation will be recorded. Rost Martin may also cease supplying to the Reseller in which the MAP violation occurred for a period of 30 to 90 days products.
3. Third Violation: The Reseller will be notified by email and all shipments of all products from us will be suspended until all violations are resolved. Additionally, all rebates may be held for the same period.

It is the Reseller’s responsibility to adhere to current MAP Policy and issued MAP List. Using an outdated MAP List will violate the MAP Policy if the price offered is less than the current MAP. If the Reseller’s employee or media supplier makes a mistake that results in a violation, it is the Reseller’s responsibility to monitor its own advertising compliance. Rost Martin may, in its sole discretion, review advertisements on a case-by-case basis to determine whether any mitigating circumstances caused an unintentional violation. Rost Martin will take any appropriate actions necessary according to its findings.

It is our practice not to discuss the business of one Reseller with another, and we will not respond to any questions or comments from one Reseller about the activities of another Reseller regarding this MAP Policy.

DEALER ACCOUNTABILITY

In the case of a MAP violation by a reseller or distributor who does not have an authorized relationship with our company and instead purchases products from a Reseller (i.e., dealer-to-dealer sale), we will pursue enforcement actions against the Reseller as provided above in this MAP Policy.