INTERNET MINIMUM ADVERTISED PRICE POLICY
Precision Dynamics Corporation, a California corporation, whose address is 25124 Springfield Court, Suite 200, Valencia, CA 91355 (“PDC”) a Brady Business, has unilaterally adopted an Internet Minimum Advertised Price Policy (“MAPP”), which is applicable to all authorized PDC distributors and authorized PDC resellers in the United States and Canada (“Authorized Partners”). MAPP is intended to protect the PDC brand as a premium offering, preserve the opportunity for competitive reseller margins and avoid channel conflict between Authorized Partners.
Although Authorized Partners remain free to establish their own advertised and resale prices, PDC will, without assuming any liability, impose sanctions as described herein against Authorized Partners who advertise PDC products online at prices below the permissible suggested list prices in violation of MAPP. MAPP pricing guidelines are consistent with the current Price List in existence between PDC and the Authorized Partners. PDC will not discuss any conditions of acceptance related to the MAPP guidelines, as they are non-negotiable and will not be altered for any Authorized Partner.
This policy is applicable to all online advertised prices made by Authorized Partners advertising PDC branded products. An online advertised price includes the price for a product shown on a web browser search; an Authorized Partner’s home page; content on a webpage within the Authorized Partner’s site or domain or, if the Authorized Partner is conducting e-commerce through a third party or subsidiary site or domain, content on a third party or subsidiary site or domain; or any other electronic media source, including Apps, social media forums and internet auctions.
Value-add promotions on PDC products can be advertised without violating MAPP as long as the PDC product is advertised at or above MAPP guidelines. Authorized Partners may not use shipping and handling incentives to circumvent MAPP. Product promotions with a price below MAPP guidelines shall not violate this policy if they are advertised in conjunction with PDC approved promotional activities.
In the event an Authorized Partner chooses not to follow MAPP, sanctions will be imposed by PDC in the following manner:
1. First Notification: PDC will send the Authorized Partner a communication noting the MAPP violation and will be allowed 10 business days to fix the infraction without further
sanction.
2. Second Notification: In the event the Authorized Partner does not cure the infraction within 10 business days, then PDC will send the Authorized Partner a communication
noting the MAPP violation and, after 10 additional business days, will demote the Authorized Partner to the next lower level of pricing discount.
3. Third Notification: In the event the Authorized Partner does not cure the infraction within 10 business days after the demotion to the next lower level of pricing discount, then
PDC will send the Authorized Partner a communication noting the continued MAPP violation and, depending on the severity of the infraction, will either cancel the year-end
growth rebate or terminate the distributor or reseller relationship.
PDC reserves the right at any time to modify, suspend, or discontinue the MAPP in whole or in part. Subject to the gravity and nature of the infraction, PDC, at its discretion, may accelerate the sanction level. All matters of interpretation and application of the terms of the MAPP shall remain within the sole discretion of PDC.
Enforcement of the MAPP will commence on February 2, 2024.
