PES Minimum Advertised Price Policy

Regal Beloit America, Inc.

Minimum Advertised Price Policy (U.S. Only)

Update effective August 1, 2025

Introduction and Purpose

Regal Beloit America, Inc. acting on behalf of its Power Efficiency Solutions business segment (“Regal Rexnord”) is a leading innovator in the design, manufacture and marketing of electric motors and related products.

We recognize that Regal Rexnord resellers who purchase Genteq^®, Century^®, FASCO^®, LEESON^®, or Washguard^® brand products from Regal Rexnord 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 resellers’ efforts, Regal Rexnord wishes to establish a policy that encourages resellers to continue to maintain the high level of excellence that customers have come to associate with Regal Rexnord products and resellers.

To protect the investment of our resellers in high quality customer service and in the Regal Rexnord brand’s reputation, we hereby unilaterally adopt a MINIMUM ADVERTISED PRICE POLICY (“MAP Policy”). Advertising practices that promote Regal Rexnord products primarily on the basis of advertised price to the exclusion of customer service essential to Regal Rexnord’s reputation is detrimental to other resellers’ investments and to Regal Rexnord’s competitive position. These activities harm Regal Rexnord’s brand, reputation, and competitiveness, and allow those who engage in such practices to take unfair advantage of the service and support efforts of others. This updated policy is effective August 1, 2025, and applies to sales to customers in the United States by resellers in the United States.

Official Policy and Guidelines

1. The MAP Policy is being unilaterally implemented by Regal Rexnord and will be enforced by Regal Rexnord in its sole discretion. Regal Rexnord, in its unilateral discretion, will take appropriate actions to secure the purposes of this Policy as discussed herein against any reseller, as to the products covered by this MAP Policy (each a “MAP Product” and collectively “MAP Products”), if that reseller advertises any MAP Product below the designated minimum advertised price (“MAP”) specified in this policy for that product. Regal Rexnord is confident that this MAP Policy will strengthen its competitiveness and the competitiveness of resellers committed to high quality customer service.


2. Nothing in this MAP Policy shall create or constitute an agreement between Regal Rexnord and any of its resellers. Regal Rexnord does not ask for, nor will it accept, any assurance of compliance or agreement from a reseller regarding the MAP Policy nor will Regal Rexnord discuss any conditions of acceptance related to the MAP Policy. Further, notwithstanding anything to the contrary in any other agreement between any reseller and Regal Rexnord, nothing in those agreements shall constitute an agreement by the reseller to comply with the MAP Policy.


3. Regal Rexnord recognizes that any reseller can make its own decisions to advertise and sell any Regal Rexnord product at any price it chooses without consulting or advising Regal Rexnord. Regal Rexnord similarly has the right to make its own independent decision regarding product allocations and the reseller’s participation in Regal Rexnord’s reseller program any time.


4. Regal Rexnord has established and will maintain an updated list of those products that fall under this MAP Policy. Regal Rexnord reserves the right to update or modify this list at any time. The current list of MAP Products and the corresponding MAPs is attached. See Exhibit 1 of this Policy. Regal Rexnord may unilaterally update and reissue the list of MAP Products and corresponding MAPs from time to time.


5. Each MAP Product has a corresponding MAP. A reseller advertising a price lower than the MAP for a MAP Product is in violation of this MAP Policy.


6. The MAP Policy applies only to advertised prices of MAP Products as set forth in this MAP Policy, and not the price at which any products may be sold. Each reseller remains free to advertise and sell any MAP product at any price it chooses without consulting or advising Regal Rexnord. However, Regal Rexnord unilaterally will take appropriate action, as noted below, with regard to resellers that choose to advertise prices lower than the applicable MAP(s).


7. While a reseller is free to independently decide whether or not to follow the MAP Policy, if a reseller chooses not to abide by the MAP Policy by advertising prices lower than the MAP for MAP Products, Regal Rexnord, in its unilateral discretion, shall take appropriate action, including but not limited to one or more of the following actions:



Regal Beloit America, Inc. acting on behalf of its Power Efficiency Solutions business segment ("Regal Rexnord") reserves all rights to unilaterally enforce this MAP Policy through various actions. Any and all violations of the MAP Policy will be determined at the sole discretion of Regal Rexnord. Resellers who do not abide by the MAP Policy will be subject to the following consequences:
MAP Policy Enforcement Schedule
60 Day Grace Period from August 1, 2025 through September 30, 2025
MAP Policy Enforcement begins October 1, 2025
Direct Customer Violations - All media as defined in section 8 of this MAP policy
First Violation	Written notice of violation issued to Direct Customer. If Direct Customer fails to correct advertised pricing to match the MAP within 7 business days, all accounts will be placed on credit hold until resolved.
Second Violation	Written notice of second violation issued to Direct Customer. If Direct Customer fails to correct advertised pricing to match MAP within 7 business days of warning, account will be placed on hold up to 20 days until resolved.
Third Violation	Written notice of third violation issued to Direct Customer. If Direct Customer fails to correct advertised pricing to match MAP within 7 business days of warning, account will be placed on hold up to 60 days until resolved.
Additional Violations	Further violations may result in account termination.
Indirect Customer Violations - All media as defined in section 8 of this MAP policy
	Indirect Customer	Direct Customer Selling to Indirect Customer
First Violation	Written notice of MAP policy and violation issued to Indirect Customer. Failure of Indirect Customer to correct advertised pricing to match MAP within 7 business days will be deemed a second violation.	If the Direct Customer is known, then written notice of Indirect Customer's violation will be issued to Direct Customer.
Second Violation	Written notice of second violation issued to Indirect Customer. Failure of Indirect Customer to correct advertised pricing to match MAP within 7 business days may result in delist action in protection of intellectual property (Amazon or similar) and or placed on "do not sell" list.	If the Direct Customer is known, then written notice of the Indirect Customer's second violation will be issued to Direct Customer. Failure of Indirect Customer to correct advertised pricing to match MAP within 7 business days may result in: (1) notification to Direct Customer of the delist action or placement of Indirect Customer on the "do not sell" list; (2) placement of the Direct Customer on credit hold until resolved; (3) cease sales of impacted MAP products to Direct Customer until resolved; or (4) other reasonable actions.
Third Violation	Written notice of third violation issued to Indirect Customer. Failure of Indirect Customer to correct advertised pricing to match MAP within 7 business days will result in delist action in protection of intellectual property (Amazon or similar) and or placed on "do not sell" list.	If the Direct Customer is known, then written notice of the Indirect Customer's third violation will be issued to Direct Customer. Failure of Indirect Customer to correct advertised pricing to match MAP will result in one or more of the following: (1) notification to Direct Customer of the delist action or placement of Indirect Customer on the "do not sell" list; (2) placement of the Direct Customer on credit hold until resolved; (3) cease sales of impacted MAP products to Direct Customer until resolved; or (4) other reasonable actions.
This MAP Policy applies 24 hours a day, 7 days a week, 365 days a year, absent Regal Rexnord providing prior written notice or approval of targeted marketing campaigns or special promotion. Regal Rexnord reserves all legal and equitable rights with respect to its MAP Policy and, at its sole discretion, maybe from time to time, alter, modify, suspend, or cancel this MAP Policy with or without notice.



8. This MAP Policy applies to all advertisements of MAP Products in any and all media, including, without limitation, flyers, posters, coupons, mailers, inserts, newspapers, magazines, mail order catalogs, internet or similar electronic media including websites, forums, email newsletters, email solicitations, television, radio, and public signage. Such website features as “click for price”, automated “bounce–back” pricing e-mails, pre-formatted e-mail responses, forms, automatic price display for any items prior to being placed in a customer’s shopping cart, and other similar features are considered to be communications initiated by the reseller (rather than by the customer) and this constitutes “advertising” under this MAP Policy. This MAP Policy also applies to any activity that Regal Rexnord determines, in its sole discretion, is designed or intended to circumvent the intent of this MAP Policy, such as solicitations for ‘group purchases’ or ‘make an offer’ and the like.


9. It shall not be a violation of this MAP Policy to advertise in general that the reseller has “the lowest prices” or will match or beat its competitors’ prices, or to use similar phrases; so long as the reseller does not include any advertised price below MAP and otherwise complies with this MAP Policy.


10. This MAP Policy does not apply to in-store advertising, such as price tags, window displays or shelf talkers.


11. From time to time, Regal Rexnord may permit resellers to advertise MAP Products at prices lower than the MAP price. In such events, Regal Rexnord reserves the right to modify or suspend applicability of the MAP Policy with respect to the affected MAP Products for a specified period of time by providing advance notice in writing to all reseller of such changes or suspensions.


12. 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.


13. It shall be a violation of this MAP Policy to include in any advertising for MAP Products any additional discount, coupon, gift card, or incentive (whether in the form of a special event, promotion, term of doing business or otherwise) that translates into an immediate price reduction, where the cumulative effect would be to reduce the advertised price of any MAP Product below MAP.


14. It shall not be a violation of this MAP Policy to advertise that a customer may “call for price” or “email for price”, or to use similar language, specifically with respect to MAP Products, so long as no price is listed.


15. If a reseller with multiple store locations violates this MAP Policy at any particular store location, then Regal Rexnord will consider this to be a violation by all of the reseller’s locations.


16. Regal Rexnord may engage in monitoring of advertised prices of MAP Products, either directly or via the use of third parties, in order to unilaterally evaluate compliance with the MAP Policy.


17. Regal Rexnord’s sales representatives are NOT permitted to discuss this Policy or make any agreements or assurances with respect to this MAP Policy regarding reseller price advertising. The only Regal Rexnord representative authorized to respond to questions regarding this MAP Policy and to whom all questions regarding this Policy must be addressed is the MAP Administrator who can be reached at: [email protected]



Any inquiries to the above representative regarding the MAP Policy should be in writing only.

18. No individual Regal Rexnord representative or employee has authority to modify, waive, alter or make exceptions to this Policy or solicit or accept assurances by a reseller of acquiescence or agreement with this Policy. Should a reseller learn of any modification or alteration of this Policy, or an attempt to do so, other than a communication in writing from Regal Rexnord, the reseller should immediately notify in writing the Regal Rexnord contact provided above.


19. The MAP Policy is subject to modification, alteration, suspension, or cancellation at any time and for any reason by Regal Rexnord acting in its sole discretion. Regal Rexnord will give notice to resellers of any changes to the MAP Policy.



To register:
rrx.channelsync.com

To view MAP Policy:
https://www.regalrexnord.com/terms-and-conditions-of-sale/us-and-canada/pes-usa-map-policy

MAP Products and Prices below: