MAP POLICY

Alpha Foxtrot MAP Policy

Alpha Foxtrot America, LLC (“Alpha Foxtrot”) introduces new firearms products into the market throughout the year. Advertising and promotional activities play a critical role in establishing the image and reputation of the Alpha Foxtrot brand in each market segment that we serve. We believe that our customers rely on advertising to establish the value of the products they purchase. Our MAP Policy is designed to ensure that all product advertising focuses on features, benefits, specifications, and quality. This advertising is essential to ensure consumers perceive the correct value of our products.

Alpha Foxtrot has launched national and regional print, radio, and internet ads in select markets throughout the United States. Additionally, Alpha Foxtrot distributors/dealers conduct advertising on their own. To support nationwide distributor/dealer channel participants, Alpha Foxtrot has implemented this MAP policy. Alpha Foxtrot believes that the MAP Policy will not only encourage resellers to promote and invest in properly positioning Alpha Foxtrot products but will also help in establishing the long-term value of the Alpha Foxtrot brand in consumers’ minds.

Unilateral MAP Policy

It is the Alpha Foxtrot unilateral policy that distributors, dealers, and retailers do not advertise in any public print or digital media a price for Alpha Foxtrot products that is less than the Alpha Foxtrot MAP price. This MAP Policy does not constitute an agreement.

This MAP Policy covers:

Publications including print and digital newspapers, newspaper inserts, weekly circulars, magazines, periodicals, catalogs, coupons, and other media, Direct print and digital mailers including flyers, emails, texts, newsletters, and other mass mailings.
Print and digital materials including posters, brochures, or in-box inserts, banners, emails, and other digital communications
Broadcasts including radio, TV, and online ads, Mail-order and digital catalogs, Alternative media and internet, including banner advertisements, broadcast emails, texts, social media, destination pages, and third-party sites such as:

Internet-only retailer websites
Websites of traditional retailers and distributors including membership clubs
Portal sites
Shopping sites

Auction sites where a minimum bid is communicated
Banner advertisements (i.e., on any website, including the reseller’s own website and pages that follow banner advertisements upon click-through)
The MAP Policy does not cover brick-and-mortar in-store advertising that is not distributed to the customer. For example, the MAP Policy does not cover brick-and-mortar point of purchase or point of sale (POP, POS) advertising, shelf-talkers, pricing tags, end-cap displays, and window displays. Nor does it cover pricing that is associated with an actual internet purchase, once the product is in the online purchaser’s “shopping cart.”

The MAP Policy does not affect the reseller’s actual resale price. Each reseller is expected to unilaterally and independently determine the price at which it sells Alpha Foxtrot products to consumers. Resellers may advertise at any price in excess of the

MAP established for a particular product.

The MAP Policy applies to every Alpha Foxtrot-authorized distributor and dealer.

Alpha Foxtrot will periodically email our updated MAP pricing to all registered dealers. To ensure that we have your most up-to-date email address, please send your company’s name with all aliases to: andy.so@dasan-usa.com.

Products Affected by the MAP Policy

The MAP Policy applies to selected products for which a Minimum Advertised Price is specified on the current Alpha Foxtrot Price List. We may include additional products at a later date by notifying you in writing from time to time.

The MAP Policy does not apply to any Alpha Foxtrot-discontinued products, refurbished products, closeouts, demonstration, or other refurbished or used merchandise.

Violations

It is a violation of the MAP Policy for a covered advertisement to include language or graphics that state or suggest that an Alpha Foxtrot MAP product is being promoted at a price less than the MAP price. Some examples of a MAP Policy violation for a covered advertisement include but are not limited to: Showing the price of the Alpha Foxtrot MAP product with a slash line through it in a manner that states or suggests that the advertised offer is less than the MAP price 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 price (unless MAP products are specifically identified as excluded from the offer) Offering any Alpha Foxtrot MAP product as a free or gift item (for example, “free with purchase”)
Offering any Alpha Foxtrot MAP product with another product or service as an added-value promotion unless the offer containing the added-value promotional product or service is part of an Alpha Foxtrot-authorized promotion.
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 price 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 an Alpha Foxtrot MAP product advertised at the MAP price
There are no exceptions to the MAP Policy for advertising in special competitive situations.

Course of Actions for Policy Violations

If an advertisement does not comply with this MAP Policy, we may take the following actions:

In the case of a first MAP violation by an Alpha Foxtrtot-authorized reseller, Alpha Foxtrot may cease supplying to such reseller for a period of 30 to 90 days products for which the MAP violation occurred.
In the case of a MAP violation by a reseller who purchases from an Alpha Foxtrtot-authorized distributor, Alpha Foxtrtot will cease supplying to such distributor for a period of 30 to 90 days products in which the MAP violation occurred.
In the case of any additional MAP violation by an Alpha Foxtrot-authorized reseller, Alpha Foxtrot may terminate the reseller’s authorization to sell the product or products in which the MAP violation occurred.
Alpha Foxtrot will unilaterally make all determinations in relation to a violation of the MAP Policy at its sole discretion. All accounts will be notified in writing of a violation.

It is the reseller’s responsibility to adhere to the current MAP Policy and price lists issued. Using an outdated MAP price list will violate the MAP Policy if the price offered is less than the current MAP price. 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. Alpha Foxtrot may, in its sole discretion, review ads on a case-by-case basis to determine whether any mitigating circumstances caused an unintentional violation. Alpha Foxtrot will take any appropriate actions necessary according to its findings.

If only one retail location of a chain reseller violates the MAP Policy, Alpha Foxtrot will solely determine if an advertisement placed by one retail location or outlet violates the MAP Policy, and sanctions may be applied to the entire chain or to specific locations.

Frequently Asked Questions

What are examples of advertising that do not violate the MAP Policy? Price advertising inside a brick-and-mortar store such as shelf-talkers, pricing tags, end-cap displays, and window displays do not violate the MAP Policy. For internet sales, pricing that is associated with an actual internet purchase, once the product is in the online purchaser’s “shopping cart” at the point of purchase or point of sale (POP, POS) would not violate the MAP Policy.

Does the MAP Policy affect selling prices? The MAP Policy does not affect your actual selling price. Each reseller is expected to unilaterally and independently determine the price at which it sells Alpha Foxtrot products to consumers. The MAP Policy addresses advertised prices outside of your brick-and-mortar retail establishment and internet pricing outside of a buyer’s

“shopping cart.”

How are online “see in cart” or “hover over price” advertisements treated by the MAP Policy? The Alpha Foxtrot MAP Policy does not cover POP, POS advertising. Therefore, you may lower a price once the online purchaser has added an Alpha Foxtrot product to the “shopping cart.” “Hover over price,” “Click here for a lower price,” “Add to cart for a lower price,” “Check cart for a lower price,” or similar disclosures of price before the POP, POS (i.e., before the purchaser has clicked into the “shopping cart” to purchase the product) would be a violation of the MAP Policy.

Does the MAP Policy affect advertisements to members of a consumer buying club? If you sell to members of a consumer buying club who pay a membership fee for discounted products, the MAP Policy still covers the advertisements you issue to those members. However, the MAP Policy does not cover point of purchase or point of sale (POP, POS) advertising. Therefore, you may lower a price at the POP, POS at a brick-and-mortar store, or, for internet sales, when the member has added an Alpha Foxtrot product to the website “shopping cart” and opens the “shopping cart” to make the purchase.

What is considered the “advertised price” on internet auction sites? The “advertised price” on an internet auction site is the price offered for sale by the seller to the public. This price is subject to the MAP Policy.

Can I start an auction below MAP with or without a reserve price? The MAP Policy applies to advertised prices. An advertised price on an internet auction site that is below MAP would be a MAP Policy violation regardless of a reserve price, especially since reserve prices are typically hidden from buyers.

Can I offer an Alpha Foxtrot product as part of a package deal without violating MAP? If the offered package deal is part of an Alpha Foxtrot-authorized promotion, there is no MAP Policy violation. All other advertised package deals for additional products or services will violate MAP. However, Alpha Foxtrot does not count in-store gift cards/credits on future purchases in this scenario. Therefore, you may offer a package deal consisting of an in-store gift card (for a future purchase) with an Alpha Foxtrot firearm purchase without violating the MAP Policy.

Where can I obtain information on suspensions or modifications to the MAP list, or for updates to this MAP Policy? You may view the MAP Policy, here, on our website. If we suspend MAP for a particular product and if we update the MAP list, we will post that here and in promotional materials we send to our distributors and authorized retailers.