Unilateral Distributor/Dealer Minimum Advertised Price Policy

[Pages:2]GLOCK, Inc.

GLOCK, Inc. P.O.Box 369 Smyrna, Georgia 30081 U.S.A.

U.S.A.

Fax. (770) 437-4714 Tel. (770) 432-1202

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PERFECTION

Unilateral Distributor/Dealer Minimum Advertised Price Policy Effective: November 1, 2010

GLOCK, Inc. ("GLOCK") has in place a Distributor/Dealer minimum advertised price policy ("MAP Policy") which shall apply to all Distributors/Dealers, including catalogs and internet retailers ("Resellers") or anyone to whom the Distributor sells or otherwise transfers GLOCK products, e.g., licensed firearms retail dealers ("Dealers").

The advertising of GLOCK products by a GLOCK Commercial Distributor ("Distributor") or anyone to whom the Distributor sells or otherwise transfers GLOCK products at lower than suggested prices, which are unilaterally determined by GLOCK and communicated to Distributors from time-to-time in order to preserve the integrity of the GLOCK brand and avoid depreciation of, or damage to, the goodwill, trademarks, trade dress, brands and trade names under which GLOCK products are sold, as well as to preserve its strong reputation for providing customers with high value products and strong after-sales support, is prohibited and constitutes grounds for disciplinary action up to and including termination of the Distributors' Agreement with GLOCK. This Distributor/Dealer MAP Policy will apply to GLOCK products listed on the GLOCK Commercial Distributor/Dealer minimum advertised price list which is attached.

This MAP Policy is not intended to be, nor shall it be construed to be, an agreement as to the minimum prices at which GLOCK Distributors and/or their Dealers will sell GLOCK products. Each GLOCK Distributor and/or their Dealers must determine in their sole discretion the price at which they sell GLOCK products. However, if GLOCK determines in its sole discretion, that a Distributor and/or their Dealers have advertised a GLOCK product at a price below that set in the current MAP price list, GLOCK will cancel all orders placed by the Distributor for itself and/or for their Dealers who are in violation of the MAP Policy. Additionally, GLOCK may refuse to accept new orders from the Distributor and/or in its sole discretion cancel the Distributor's contract with GLOCK.

If a particular GLOCK product does not appear on the current MAP listing, then there is no minimum advertised price for that product. Upon introduction of any new GLOCK product, GLOCK will notify Distributors of the applicable MAP for that product and it shall be the sole responsibility of the Distributor to provide such notification and information to its Dealers.

The GLOCK MAP Policy applies to all advertisements of designated GLOCK products in any and all media, including, and without limitation to the following:

*flyers *posters *coupons *mailers *inserts *newspapers *banner ads

*magazines *catalogs *mail order catalogs *television *radio *public signage *price tags

*displays at consumer and/or industry shows *Internet or similar electronic media *websites *email newsletters *email solicitations *faxes *store counter signs

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PERFECTION

GLOCK, Inc.

USA

The MAP Policy shall also apply to any end-price, end-of-transaction sales price, as well as any "in cart" price and/or any "check-out page" of any Distributor/Dealer's website or related internet site. In addition, should any Distributor/Dealer advertise GLOCK products at a price which results in net prices (final price after deducting discounts, free delivery, and other benefits offered to the buyer) below that which is set forth and allowed hereby, Distributor/Dealer will be in violation of the MAP Policy.

It is the responsibility of all Distributors to ensure that all those Dealers to whom that Distributor sells GLOCK brand products promptly receives a full copy of this MAP Policy and those Dealers to whom the Distributor sells GLOCK brand products, themselves, adhere fully and completely to the pricing requirements set forth herein. If it is determine by GLOCK that a Distributor/Dealer has violated the terms of this MAP Policy, GLOCK can require all Distributors/Dealers to:

? Cease and desist all further sales to that offending Distributor/Dealer; ? Discontinue support of any sponsorship; ? Accelerate payment of any and all monies owed GLOCK by Distributor/Dealer under any

then-applicable credit agreement notwithstanding any "current" account status; and ? Place violating Distributor/Dealer on a "Do Not Sell" list.

It is the responsibility of all Distributors/Dealers to assist in the policing of this MAP Policy and to immediately contact GLOCK, Inc. with the identity of the offending party. The only GLOCK employee authorized to comment on and respond to inquiries regarding this MAP Policy is Mr. Carlos Guevara, General Counsel, GLOCK, Inc., P.O. Box 369, Smyrna, GA 30081, e-mail carlos.guevara@glock.us.

BY CONTINUING TO DO BUSINESS WITH GLOCK, INC. AFTER THE EFFECTIVE DATE OF THIS POLICY, YOU WILL BECOME AUTOMATICALLY BOUND TO THE TERMS AND CONDITIONS CONTAINED HEREIN.

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