True Kustom Minimum Advertised Pricing Policy (MAP) True Kustom

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True Kustom Minimum Advertised Pricing Policy (MAP)
True Kustom actively supports the advertising and promotion of its products by its dealers. True Kustom
has built a strong reputation and following among consumers. True Kustom believes it is important that
its dealers and distributors provide skilled, professional assistance in demonstrating, explaining,
selecting and purchasing True Kustom products. Accordingly, True Kustom recognizes that its dealers
must earn sufficient profits to provide those services. In addition, True Kustom has determined that
marketing its products at prices below certain levels undermines the industry reputation, image, and
marketing strategy as a leading supplier in the motorcycle products industry. This also makes it less
likely that dealers and distributors will carry True Kustom products or earn sufficient profits. As a result,
True Kustom has determined that it will not support, through advertising or promotional materials,
cooperative advertising or otherwise, advertisements or promotional materials that have the effect of
diminishing or detracting from the perceived value of True Kustom products.
Effective as of January 1, 2013, True Kustom has unilaterally established a minimum advertised price
(“MAP”) on all True Kustom products to support brand value and consumer service and satisfaction.
This policy applies only to dealers and distributors located in and selling from the United States; it does
not apply to dealers and distributors of True Kustom products that are located outside of the U.S.
The following guidelines apply to the True Kustom MAP policy:
1. These guidelines have been developed independently and unilaterally by True Kustom, and
may be amended, waived or cancelled from time to time in True Kustoms sole and absolute
discretion. Not withstanding any other provisions of these guidelines, these guidelines do not and shall
not constitute a binding agreement between True Kustom and any other party, and no distributor
shall have any enforceable rights hereunder.
2. True Kustom may, in its sole discretion, select one or more companies to act as domestic
distributors of certain products. Any companies selected as distributors shall have the right to
distribute True Kustom products on a non-exclusive basis to retailers within the United States and
with other such restrictions as may be determined from time to time by True Kustom.
3. Authorized dealers and distributors may sell True Kustom products at any price in their sole
discretion. However, True Kustom reserves the right to supply products only to those dealers and
distributors whose advertised prices for True Kustom products at or above the MAP referenced in
True Kustom price sheets.
4. MAP policy applies to all advertisement of True Kustom products in any media including,
without limitation, flyers, posters, coupons, mailers, inserts, newspapers, magazines, catalogs, mail
order catalogs, internet or similar electronic media, television, radio and public signage. MAP applies to
all website and all other internet references to prices of any True Kustom products, either express or
implied True Kustom MAP policy is not applicable to any in-store advertising that is not distributed to
any customer such as in-store displays or signs.
5. MAP applies only to advertised pricing and does not apply to the price at which products are actually
sold or offered to any individual customer within the dealer’s retail location or over the telephone.
True Kustom Dealers and Distributors remain free to sell these products at any price they elect.
6. True Kustom MAP policy does not establish the maximum advertised pricing. All dealers and
distributors may offer True Kustom products and any price in excess of the True Kustom MAP
established for such a product.
7. True Kustom MAP policy does not in any way limit the ability of any dealer to advertise that they
“have the lowest prices”, that they “will match or beat any competitors price”, that consumers should
“call for price”, or phrases of similar import, as long as the advertised or listed price is not less than the
True Kustom MAP.
8. Examples of advertising that express or imply a price less than True Kustom MAP, and
therefore violate this policy include, but are not limited to “prices too low to show”, “prices so low we
can’t advertise”, “instant rebates”, “promotional code”, and “promotional coupon”.
9. The inclusion in advertising of free or discounted products (whether made by True Kustom or
another manufacturer) with a product covered by True Kustom MAP policy is contrary to the
policy if it has the effect of discounting the advertised price of the covered product below True Kustom
MAP. Similarly, advertising that offers or promotes True Kustom products as a
“bonus”, as “free”, or with no or a limited charge less than MAP violate this policy.
10. True Kustom may, unilaterally, and in its sole discretion, discontinue supplying its products
and terminating its business relationship with any dealer or distributor that fails to comply with this
policy, whether or not the violation occurs in relation to one or several of the dealers or distributor’s
outlets or points of sale. True Kustom may not provide prior notice or issue warnings before
taking any action under this policy.
11. Under this MAP policy, True Kustom may refuse to sell its products to any dealer or
distributor who is found supporting, supplying, or in any way facilitating other dealers, distributors or
retailers who advertise below True Kustom published MAP price.
12. This MAP policy is established by True Kustom for all True Kustom products and may
be adjusted by True Kustom at any time in its sole discretion. This MAP policy has been
established by True Kustom to help ensure the legacy of True Kustom as a top producer of
high quality, aftermarket motorcycle parts and accessories and to protect the reputation of its name and
products. True Kustom policy is also designed to ensure that dealers and distributors have the incentive
to invest resources into services for True Kustom customers.
Dealer Name___________________________________________
Dealer address and web address. ______________________________________________________
_________________________________________________________________________________.
Authorized Dealer Rep Signature__________________________________________date_________.
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