Evolution Power Tools, LLC (“Evolution”) remains committed to helping our distributors grow their business and overall levels of profitability through the sale and service of Evolution products. We recognize that our distributors invest time and resources to develop value-added relationships with customers that use our products in their respective territories. To support your efforts, Evolution is establishing a MINIMUM ADVERTISED PRICE POLICY (“MAP Policy”) for selected products introduced into the marketplace. We believe this will avoid predatory pricing on these products that could erode your customer relationships, sales growth, and overall profitability.

The MAP Policy is aimed at assuring the perceived value of Evolution products and distributors remains high, which in addition to customer relationships, sales growth, and overall profitability, also supports the perception of Evolution, our reputation, and competitiveness in the industry.

This revised MAP Policy is effective as of January 2, 2020 and supersedes any previous version. This policy will apply to all distributors and retailers, including catalog and internet retailers, (collectively, “Reseller”), who sell Evolution products listed in Exhibit 1 to end users in the United States.

Product	Description	Effective Date	Minimum Advertised Price
S185CCSL	7-1/4” Metal Cutting Circular Saw	11/11/19	$149.00
S210CCS	8-1/4” Metal Cutting Circular Saw	10/01/21	$289.00
S355CPSL	14" Steel Cutting Chop Saw w/14BLADEST	1/2/20	$339.00
S380CPS	15" Steel Cutting Chop Saw w/ 14BLADEST	1/2/20	$439.00
S28MAG	1-1/8" Dia. x 2" Depth Magnetic Drilling System	1/2/20	$515.00

1. Evolution reserves the right, in its unilateral and sole discretion, to take any action, including termination, with respect to any Reseller that violates this MAP Policy.
2. Evolution will enforce the MAP Policy in its sole and unilateral discretion. Evolution is not under any circumstances seeking agreement from any Reseller to adhere to this MAP Policy.
3. Evolution recognizes that any Reseller can make its own decisions to advertise and sell any Evolution product at any price it chooses without consulting or advising Evolution Power Tools. Evolution similarly has the right to make its own independent decision regarding Resellers it chooses to continue selling products.
4. Evolution reserves the right to update or modify the MAP Price list at any time at its sole discretion. Each advertisement of a product identified in the MAP Price list less than the price shown will be a violation of the MAP Policy. Evolution products not specifically identified in the MAP Price list are not subject to this MAP Policy.
5. Where Evolution products are bundled with or sold as part of a package that includes other products, it shall be a violation of this MAP Policy to sell or advertise the bundle (or package) at a price that in the exercise of Evolution’ reasonable discretion would be lower than the MAP Policy price for the Evolution Products covered by the MAP Policy when a fair allocation of costs of the (non-MAP) products of the bundled package are considered.
6. It shall be a violation of this MAP Policy to include in any advertising for Evolution Products any additional discount, coupon, gift card, or incentive (whether in the form of a special event, promotion, term of doing business or otherwise) that translates into an immediate price reduction, where the cumulative effect would be to reduce the advertised price of any MAP product below the MAP Price.
7. This MAP Policy applies only to advertised prices and does not apply to the price at which Evolution products are actually sold or offered for sale to an individual customer within Resellers’ retail location, over the telephone, or within Resellers’ Select territory (if such territory has been assigned). Resellers remain free to sell these products at any price they choose under these circumstances. This MAP Policy does not establish maximum advertised prices. All Resellers may offer Evolution products at any price in excess of the MAP Price.
8. In addition, at no time may a Reseller make any statements or other indications on its e-commerce website in connections with any Evolution Power Tools product that indicates or implies that a lower price may be found at the online checkout state, including, but not limited to, the following examples:


• “See price in cart”
• “Log in for price”
• “Use coupon code for discount price”
• “Call for price”
• “Call for discount”


9. From time to time, Evolution may permit Resellers to advertise MAP Products at prices lower than the MAP retail price. In such events, Evolution reserves the right to modify or suspend the MAP retail price with respect to the affected products for a specified period by providing advance notice to all its customers of such changes.
10. From time to time, Evolution may offer a direct manufacturer’s rebate to customers. In such event, it shall not be a violation of this MAP Policy to advertise the availability of the manufacturer’s rebate, provided that (a) advertisement include a MAP compliant price, the rebate amount, and the net price after the manufacturer’s rebate in the same type size and style; (b) an asterisk is placed next to the net price after manufacturer’s rebate; (c) the “After manufacturer’s rebate” appears in the same area of the advertisement as the advertised product.
11. Evolution Sales’ representatives are NOT permitted to make any agreements or assurances with respect to Evolutions’ MAP Policy regarding reseller advertising or pricing. This also includes any consumer program or promotion that affects the MAP Products.

Intentional and/or repeated failure to abide by this MAP Policy will result in sanctions unilaterally imposed by Evolution. The level of sanctions will be determined by Evolution in its sole discretion and may include permanent termination of Reseller. Evolution does not intend to do business with Resellers who degrade the image of Evolution or its products. If a Reseller with multiple store locations violates this MAP Policy at any store location, then Evolution may consider this to be a violation by all the Reseller’s locations. Evolution will monitor the advertised prices of its products in all channels, either directly or via the use of a third-party monitoring service. If a Retailer, Reseller or Distributor’s advertised price for any Evolution products is lower than the MAP, the following actions will be taken:

1. First Violation: Evolution will issue a warning to the Reseller. Evolution may also, at its own discretion and without any liability under any existing contracts or agreements, cease supplying the Reseller with its products until the violation has been corrected.
2. Second Violation: Evolution will issue a 2nd warning to the Reseller. Evolution may also, at its own discretion and without any liability under any existing contracts or agreements, cease supplying the Reseller with its products for a period of 30 days or move to immediate termination of buying privileges.
3. Third Violation: Evolution will issue a 3rd warning to the Reseller. Evolution may also, at its own discretion and without any liability under any existing contracts or agreements, cease supplying the Reseller with its products for a period of 90 days or move to immediate termination of buying privileges.
4. Fourth Violation: Termination of Reseller’s buying privileges.