MINIMUM ADVERTISED PRICE (MAP) POLICY

USA Policy Effective Date: July 31, 2020
Canada Policy Effective Date: September 21, 2020

Summary
Omcan has established a Minimum Advertised Price (MAP) Policy that applies to all authorized distributors and dealers (Resellers selling products in or into the United States and or Canada). The purpose of the Policy is to assure that end user purchasers have continuing access through our authorized Resellers to accurate and expert information, specifications, and support needed to identify, evaluate and purchase the products which are optimum for their requirements. The MAP Policy applies to prices that may be advertised by Resellers and does not restrict the sales price of products. The MAP Policy includes specific guidelines for administration of the program and penalties for violations.

Purpose of MAP Policy
The Omcan MAP Policy provides an enhanced equipment purchasing experience by supporting Resellers who invest in knowledge of products and their functional performance capabilities, customer service and supports, and cooperate with Omcan in maintaining the premium brand image and long-term competitiveness of the Omcan brand. Due to the nature and uses of our products, it is necessary for authorized Resellers and their sales associates to commit significant time and resources to learning, supporting, specifying, and selling our products. In addition, we recognize there are significant investments required in properly supporting, marketing and advertising our products, and educating the equipment purchaser about each product’s unique application, benefits and value proposition. We sell our products to authorized Resellers at a cost/price structure intended to provide the Reseller with margins adequate to fund these activities. Therefore, it is the purpose of this MAP Policy to support our mutually beneficial cost/price structure for all authorized Resellers.

MAP Definition and Application
This Policy applies to select brands and products within the Omcan portfolio. Omcan publishes and maintains for its Reseller partners a comprehensive list of the products and MAP for each.

Resellers may advertise prices equal to or greater than the MAP for covered products sold as “new.” Omcan defines “new” products as, 1) those sold by Omcan or one of its authorized Resellers without prior in-service use by any end user purchaser, or 2) any product sold by a Reseller when covered by the manufacturer’s original warranty.

The MAP Policy does not apply to specific pieces of equipment when all the following conditions are met:
1. The advertisement uses one of the following terms to clearly indicate the condition of the unit: “used”, “damaged” or “floor model”.
2. The advertisement included the following terms used in all capital letters “NO FACTORY WARRANTY”.
3. The advertisement included the serial number of the unit that is being offered.
4. The Reseller has previously notified Omcan that the factory warranty should be removed from this unit. (This can be done with an email to the MAP Administrator for Omcan.)

This MAP Policy prescribes the lowest price that an authorized Reseller may advertise in any form of advertising, including, but not limited to internet (including “add to cart” and “checkout” pages), print, direct mailing, radio, group or “broadcast” email, group or “broadcast” FAX and all other forms of pricing advertisement. Omcan defines advertising as promulgation, publication or other promotion of product and pricing information outside the Reseller’s physical business location and intended for more than a single individual.

Any direct request for pricing made by an individual prospective purchaser to a Reseller in person or through other deliberate action is considered by Omcan to be a request for a price quotation from the prospective purchaser to the Reseller, thus MAP does not apply.

By definition, resellers may not make any statements, displays or communications that indicate, state, imply, or suggest that a lower price may be found at the online check out, including but not limited to: “click here for lower price,” “see lower price in cart,” “add to cart for lower price,” “check cart for lower price,” “chat for price,” “mouse over for price,” “text for price,” “log-in for price,” “e-mail for a better price,” “call for lower price,” or similar language. Such website features as automated “bounce-back” pricing emails, pre-formatted e-mail responses, forms, automatic price display, and other similar features are considered communications initiated by the Reseller (instead of the customer) and constitute “advertising” under this MAP Policy. This MAP Policy also applies to any activity which Omcan determines is designed or intended to circumvent the intent of this MAP Policy.

The advertising or offer of new Oman products in any auction is prohibited and is a violation of our MAP Policy, except for auctions which include a published minimum purchase price or “reserve price” which complies with the Omcan MAP Policy.

If one or more products from Omcan are “bundled” or combined in an advertisement, the aggregate price for all Omcan products offered for sale in the bundle may not be lower than the cumulative MAP for each of the products when sold separately.

Under the MAP Policy, Omcan prohibits the use of split-screen, side-by-side advertising, or pop-ups to advertise a similar product of any other brand. Omcan prohibits any Reseller from directing (automatically, inadvertently or otherwise) an Omcan customer who is in search of an Omcan product or item to any other brand.

The MAP Policy is not applicable to in-store advertising that is displayed only in a physical store location. In-store displays, point-of-sale signs, hangtags, barcodes, QR codes or similar marks on products or product packaging which present the price are not considered “advertising” for purposes of this MAP Policy.

This Policy does not affect or restrict the price at which an authorized Reseller sells our products. Our authorized Resellers are free to sell Omcan products at whatever price they may choose.

MAP Disclosure or Undercutting Prohibited
The working “minimum advertised price,” “MAP Price,” and/or “MAP” or similar references to the MAP Policy shall not appear in any advertisement, quotation, or communication which includes Omcan products. Such reference is a violation of the Omcan MAP Policy.

Advertising that indicates that the MAP Price is not the applicable price for the product or that a lower price is available also are violations of the MAP Policy. Therefore, advertisements shall not display any prices that have a strike through or refer to the MAP price as “list price,” “factory price,” “manufacture’s price” or similar statements.

Advertisers shall not use “cookies” or other means to recognize a repeat visitor which trigger display of prices that are lower than MAP without a full log in process where an active session was discontinued.

Promotional Pricing and Discontinued Products
From time to time, Omcan may conduct promotions for products covered by the MAP Policy. In such events, Omcan reserves the right to modify or suspend the MAP with respect to the promotional products by notifying authorized Resellers of such promotions.

Omcan further reserves the right to adjust the MAP with respect to all or certain products in its sole discretion upon written notice to authorized Resellers. Upon Omcan’s prior written notification, authorized Resellers may advertise such products consistent with the written notification. Omcan may also suspend or eliminate MAP pricing on discontinued products in its discretion, upon notice to its authorized Resellers.

MAP Enforcement
Omcan will monitor compliance with this Policy. The enforcement process is based on violations across all Omcan brands and products covered by this MAP Policy. Our enforcement process allows immediate correction of errors, with subsequent penalties for delays or repeated violations within 60 days of such violation. The consequences are targeted at the violator and are not intended to penalize the equipment purchaser.

In the event a violation is determined, the following actions may be taken:

1. First Violation: The Reseller will be contacted in writing and allowed 24 hours to comply with the Policy. If correction is made, the violation is recorded, but no penalties will apply. If the violation is not corrected within 24 hours, then the Reseller will be notified in writing and a second violation will be recorded.

2. Second Violation: The Reseller will be contacted in writing and allowed 24 hours to comply with the Policy. If correction is made, the violation is recorded, but no penalties will apply. If the violation is not corrected within 24 hours, then the Reseller will be notified in writing and a third violation will be recorded.

3. Third Violation: The Reseller will be notified by email and all shipments of all products from all Omcan warehouses will be suspended until all violations are resolved. Additionally, all rebates may be held for the same calendar quarter in which the violation occurred until all violations are resolved.

4. Fourth Violation: The Reseller will be notified by email and all shipments of all products from all Omcan warehouses will be suspended until such violations are resolved. Additionally, any rebates the Reseller may have earned for any and all calendar quarters in which any MAP violation occurred will be forfeited and subsequent violations will result in additional rebates forfeited and termination of the Reseller.

Dealer Accountability
In the case of a MAP violation by a Reseller who does not have an authorized relationship with Omcan and instead purchases Omcan products from an authorized distributor or any other Reseller (i.e., dealer-to-dealer sale), Omcan will pursue enforcement actions against the authorized distributor or Reseller as provided above in this Policy.

Other Provisions
This program is managed by the MAP Policy Administrator for Omcan. Omcan reserves the right to change, add or delete covered products, and change or cancel the MAP Policy at any time upon written notice to authorized Resellers and distributors.

Only the MAP Policy Administrator may provide advice to Resellers concerning compliance with the MAP Policy or authorize exceptions to the MAP Policy. No other individual, including any employee or representative of Omcan, may provide such advice or authorizations regarding this Policy to any Reseller. It is the Reseller’s sole responsibility to remain aware of any changes to the Omcan MAP Policy. The MAP Policy and our MAP price list are available to authorized Resellers directly from Omcan by contacting MAPadmin@omcan.com.

MAP Policy Administrator
MAPadmin@omcan.com
Omcan Inc.
15056 Shoemaker Avenue. Santa Fe Springs, California, 90670.