Minimum Advertised Price Policy (MAP)

Regal Rexnord – Motion Control Solutions (“MCS”) Minimum Advertised Price Policy (MAP) – Applicable only to United States Distributors and Resellers

Effective: January 3, 2023

Introduction and Purpose

Pursuant to PTDA and BSA Distributor April 12th, 2019 Joint Task Force announcement (https://www.ptda.org/resources/sales-operations/industry-formats/product-price-information-format.aspx), Regal Rexnord MCS supports and is implementing a Minimum Advertised Price Policy, otherwise known as a MAP Policy, for its network of distributors and resellers (each a “Distributor” or “Reseller”) of Browning branded AK and BK series V-Belt Sheaves products (the “Products”).

Regal Rexnord MCS is a manufacturer of high-quality mechanical power transmission products and services. Regal Rexnord MCS believes it is important that its Distributors or Resellers provide appropriate high-quality sales assistance and service to customers considering Regal Rexnord MCS’s products. Regal Rexnord MCS recognizes that Distributors or Resellers who purchase Regal Rexnord MCS products for resale to others, invest time and resources to deliver an extraordinary customer experience through knowledgeable staff, compelling product presentation and training, and other unique offerings and services. To support our Distributors or Resellers efforts, Regal Rexnord MCS wishes to establish a policy that encourages Distributors or Resellers to continue to maintain the high level of excellence that customers have come to associate with Regal Rexnord MCS products and Distributors or Resellers.

End customers rely on advertising and online product research to help establish the value of products they purchase. This MAP Policy is intended to ensure that the Products are promoted in the marketplace with the appropriate value and brand equity. Advertising and promotional activities play a crucial role in strengtheningthe image, reputation and equity of these brands in each market segment that Regal Rexnord MCS serves.

Regal Rexnord MCS does not control the actual sale price to end users in the marketplace. Distributors or Resellers include independent Distributors or Resellers, national and regional retailers and internet retailers of the Products. Distributors or Resellers have the ability and discretion to independently sell all Products and parts at any price they choose.

It is Regal Rexnord MCS’s policy that no Distributors or Resellers may use Regal Rexnord MCS’s trademarks, trade names or service marks, or any of its copyright materials or other intellectual property or proprietary rights, and collateral materials (collectively “Regal Rexnord MCS IP”), in any advertising, internet sales, or otherwise except in accordance with the license provided in https://regalrexnord.com//terms-and-conditions-of-sale/us-and-canada/revision-july-2022. Further, Regal Rexnord MCS has adopted this MAP Policy in order to ensure that the reputation and goodwill of the Regal Rexnord MCS IP is maintained or exceeded. The License may be terminated automatically and immediately if the Distributors or Resellers does not comply with this MAP Policy.

Regal Rexnord MCS reserves the right to revise its Limited Warranty to reduce coverage available to customers obtaining products from Distributors or Resellers who are not compliant with Regal Rexnord MCS’s policies including, but not limited to, the MAP Policy.

This MAP Policy benefits both Distributors or Resellers and Regal Rexnord MCS by requiring that resellers adhere to the Minimum Advertised Price and Internet Sales principles established herein.

Minimum Advertised Price Policy (MAP)

Overview

• The Minimum Advertised Price (the “MAP”) will be identified for the Products as follows: (i) those Distributors or Resellers utilizing the PTDA PPIF File Exchange will see the pre-determined MAP Field populated and (ii) Non-PTDA Distributors or Resellers will be sent a separate file link. Used, open box, damaged, or otherwise recycled Regal Rexnord MCS products are not covered under this MAP Policy.
• It is a violation of this MAP Policy for Distributors or Resellers to advertise a price for a new, unused Product or part from Regal Rexnord MCS below the Minimum Advertised Price, as established by Regal Rexnord MCS.
• Products covered by this MAP Policy and their respective Minimum Advertised Prices (MAP) may be updated from time to time in Regal Rexnord MCS’s sole discretion to include, without limitation, new products and special promotions or rebates. Updates to this MAP Policy and/or a Product’s MAP will be communicated to Distributors or Resellers via email, either personal or via email blast.
• Advertisements of Regal Rexnord MCS Products covered by this MAP Policy must contain an advertised price greater or equal to the Products’ respective MAP, the respective SKU as set forth in the PPIF or file link, and the respective Product name as set forth in the PPIF or file link.
• Products and parts can be sold by Distributors or Resellers at any price, including a price below the Minimum Advertised Price established by Regal Rexnord MCS. This MAP Policy only prohibits Distributors or Resellers from advertising Products and parts below the MAP, but not from selling Products and parts below the MAP.
• Products that are “used / open box / damaged or otherwise recycled” may be advertised at any price, as long as the product is clearly marked as “used” and cannot be perceived by the end customer as new.
• This MAP Policy does not apply to non-current / discontinued models. Any advertising of non-current models must include the price and specific model number for the product and clearly indicate that the product is a non-current model.

Advertising

• Advertising is defined as listing a price for a specific SKU or referring to Product-specific coupons, rebates, Product giveaways, “name-your-price,” and other promotional offers, that have the effect of lowering an advertised price.
• Advertising media include, but are not limited to:
  • Television
  • Radio
  • Print including newspapers, flyers, circulars, classified ads
  • Billboards
  • Internet banner, pay-per-click and search ads, including Google AdWords
  • Mobile ads
  • Dealer or reseller website
  • Third party retail websites including Amazon.com, Ebay.com, Walmart.com
  • Online classified ad websites including Craigslist.org
  • Marketplace sites including Facebook and Sears.com
  • Social media including, but not limited to, Facebook, Linked In, Twitter and Instagram
  • Direct mail via U.S. or Canadian Postal Service
  • Email, mobile or text messaging
  • New advertising media as they arise
  • Trade Shows or Industry Associations
• Advertising practices that have the effect of reducing the advertised price below the MAP violate this MAP Policy. Such practices include, but are not limited to, use of "Click to See Pricing" (or similar promotions) in internet sales to reveal an advertised price below the MAP, as well as combining a Product subject to this MAP Policy with a "free" product or in a "package" with other products or with a discount coupon.
• It shall not be a violation of this MAP Policy to advertise in general that the Dealer has “the lowest prices” or will match or beat its competitors’ prices, or to use similar phrases; so long as the Dealer does not include any advertised price below MAP and otherwise complies with this MAP Policy.

Questions

• If any Distributor or Reseller has questions about this MAP Policy, please provide written correspondence, via e-mail to: [email protected]
• No representative of Regal Rexnord MCS is authorized to provide or obtain pricing information from any reseller either orally or in person. All correspondence between Distributors or Resellers and Regal Rexnord MCS regarding this MAP Policy must be submitted in writing, as noted above.

MAP Policy Enforcement (Post 60 Day Grace Period between January 3rd, 2023 and E.O.B. March 4th, 2023)

Regal Rexnord MCS reserves all rights to unilaterally enforce this MAP Policy through various actions. Any and all violations of this MAP Policy will be determined at the sole discretion of Regal Rexnord MCS. Distributors or Resellers who do not abide by this MAP Policy will be subject to the following consequences in Regal Rexnord MCS’s sole discretion:

First Violation	Formal warning issued to Distributors or Resellers. Distributors or Resellers must correct advertised pricing to match the MAP within 7 business days after receipt of warning. Failure to do so may result in your account being placed on credit hold until resolved.
Second Violation	Distributors or Resellers must correct advertised pricing to match the MAP within 7 business days of warning. Failure to do so may result in your account being placed on credit hold for 20 business days after resolution.
Third Violation	Distributors or Resellers must correct advertised pricing to match the MAP within 7 business days of warning. Failure to do so may result in your account being placed on credit hold for 60 business days after resolution.
Additional Violations	Further violations may result in account termination

This MAP Policy applies 24 hours a day, 7 days a week, 365 days a year, absent Regal Rexnord MCS providing prior written notice or approval of targeted marketing campaigns or special promotions. Regal Rexnord MCS reserves all legal and equitable rights with respect to its MAP Policy and, at its sole discretion, may from time to time, alter, modify, suspend, or cancel this MAP Policy with or without notice.

Future Changes

Regal Rexnord MCS reserves the right to modify this Minimum Advertised Price Policy at any time, upon notice to Distributors or Resellers, when changes are made.