MAP Policy

E-COMMERCE Resellers, dealers and retail outlets may engage in e-commerce activities within their own website domains. E-commerce, to include advertising and resale, conducted outside of the reseller, dealer or retail outlets website domain, as well as the selling of the Product to another for resale, is in violation of this agreement and is cause for termination of the agreement. Additionally, E-commerce and online retail are governed by the Minimum Advertised Pricing Policy (MAP).

MINIMUM ADVERTISED PRICING (MAP) POLICY PHALANX actively supports the advertising and promotion of its products in the U.S. by its Resellers and dealers. PHALANX has built a strong reputation and following among a wide variety of customers. For this reason, PHALANX has determined that it will not support advertising and promotional efforts that have the effect of diminishing or detracting from the perceived value of PHALANX products.

Effective January 1, 2014, PHALANX has established a Minimum Advertised Price (“MAP”) Policy for select PHALANX products (the “Covered Products”) that applies to all Resellers of the Covered Products which are authorized by PHALANX (the “Resellers”).

This MAP Policy works as follows: 1. The MAP for the Covered Products shall be communicated on the Price List(s) issued

by PHALANX from time to time to the Resellers. MAP pricing is established by PHALANX and at any time may be modified or discontinued in whole or part by PHALANX at its sole discretion, effective upon receipt of written notice thereof from PHALANX or such other effective date designated by PHALANX. (The use of advertising and promotional material that cannot be modified in time will not be considered a MAP violation.)

2. The MAP Policy applies to all forms of advertising, whether hard copy or electronic, including without limitation flyers, posters, coupons, mailers, inserts, newspapers, magazines, catalogs, mail order catalogs, public signage, displays at consumer exhibitions and shows. The MAP policy is not applicable to any in-store advertising that does not leave the store. Any price information relating to PHALANX products on an Internet website which can be accessed directly through any hypertext link or by any other method which uses the hypertext transfer protocol (http) is considered to be advertising for purposes of this Policy. Electronic mail sent in direct response to a customer inquiry is not considered to be advertising.

3. The inclusion in advertising of free or discounted products (whether marketed by PHALANX or another supplier) with a Covered Product is contrary to the Policy if it has the effect of discounting the advertised price of such Covered Product below the MAP. 4. The MAP applies only to advertised prices and does not apply to the price at which the products are actually sold or offered for sale to an individual customer within the

retail location(s) of each of the Resellers or over the telephone. The Resellers remain free to sell the Covered Products at any prices they elect.

5. The MAP Policy does not affect maximum advertised prices. All of the Resellers may offer any or all of the Covered Products at any price in excess of the MAP established for each such product.

6. The MAP Policy does not in any way limit the ability of each of the Resellers to advertise that it has “the lowest prices” or it “will meet or beat any competitor’s price.”

However, it is inconsistent with the MAP Policy to advertise or imply that customers should “call for a price”, “quantity discount available” or the like, even though the price advertised or listed for the product or products involved is not less than MAP. 7. Failure to abide by this Policy will result in any or all of the following: the elimination of discounts, the loss of one or more product lines and the disqualification for reimbursements under PHALANX support programs. PHALANX will not support any of the Resellers which degrade the image of PHALANX and its products.

8. The terms of this MAP policy are confidential and should not be disclosed to other parties. This Policy is unilateral policy and expresses the terms upon which PHALANX will deal with its customers. This Policy has been established by PHALANX to help ensure the legacy of PHALANX as a leader in the marketing of law enforcement and public safety products and to protect the reputation of its name and products. This Policy is also designed to help ensure that the Resellers have the incentive to invest resources into services for their customers of Phalanx products.