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MAP Policy

Effective as of May 7th, 2015, Ripe Vapes will unilaterally establish and enforce a Minimum Advertised Price (“MAP”) policy on all Ripe Vapes products. The MAP policy will apply to all U.S. and Canadian dealers and distributors.

Introduction

As the leading innovator of e-liquid, Ripe Vapes is proud of its role as a pioneer in the vaping industry.

We recognize that our dealers invest time and resources to deliver a quality vaping experience. To support our resellers’ efforts, Ripe Vapes wishes to establish policies that allow resellers to earn the profits necessary to maintain the high level of customer service consumers have come to expect from the Ripe Vapes brand.

To protect the investment of our high-quality dealers and Ripe Vapes’ brand reputation, we have unilaterally adopted a Minimum Advertised Price (“MAP”) policy. Ripe Vapes established this MAP policy due to the fact that reseller advertising and sales practices that promote Ripe Vapes products primarily on the basis of price could be detrimental to resellers’ service and support efforts and Ripe Vapes’ competitive position. Such activities can be harmful to Ripe Vapes’ brand, reputation and competitiveness, and allow some resellers to take advantage of the service and support efforts of others. Ripe Vapes believes that these practices are unfair and thus discourages such efforts.

The MAP policy is unilaterally established by Ripe Vapes for all products and may be adjusted by Ripe Vapes at its sole discretion. The MAP policy may be changed from time to time at Ripe Vapes’ sole discretion. The MAP policy applies only to advertised prices and does not apply to the price at which the products are actually sold. The MAP policy does not establish maximum advertised prices. All dealers and distributors may offer Ripe Vapes, Security Group products at any price in excess of the MAP established for such product.

Ripe Vapes, in its unilateral discretion, reserves the right not do business with any reseller, as to the products covered by this MAP policy, if that reseller intentionally advertises any product listed in the MAP policy below its MAP policy price. Ripe Vapes is confident that this program will strengthen its competitiveness and benefit all of its resellers.

Official Policy and Guidelines

Additional guidelines related to the MAP policy are as follows.

  1. Ripe Vapes reserves the right, in its unilateral discretion, to take other action with respect to any reseller that violates this MAP policy.
  2. The MAP policy will be enforced by Ripe Vapes in its sole discretion.
  3. Ripe Vapes recognizes that any authorized Ripe Vapes dealer, distributor, or reseller can make its own decisions to advertise and sell any Ripe Vapes product at any price it chooses without consulting or advising Ripe Vapes. Ripe Vapes similarly has the right to make its own independent decision regarding product allocations and distributor and reseller participation at any time.
  4. Ripe Vapes will maintain an updated “MAP Products” list of those products that will fall under this MAP policy. Ripe Vapes reserves the right to update or modify this list at any time.
  5. Listing a price lower than the that found in the MAP Products list next to the featured MAP Product in any advertising will be viewed as a violation of this MAP policy. This MAP policy applies to all advertisement of MAP Products in any and all media, including, without limitation, flyers, posters, coupons, mailers, inserts, newspapers, magazines catalogs, mail order catalogs, internet or similar electronic media including websites, forums, email newsletters, email solicitations, television, radio, and public signage. Such website features as “Click for price”, automated “bounce – back” pricing e-mails, pre-formatted e-mail responses, forms, automatic price display for any items prior to being placed in a customer’s shopping cart, and other similar features are considered to be communications initiated by the reseller (rather than by the customer) and this constitutes “advertising” under this MAP policy. This MAP policy also applies to any activity which Ripe Vapes determines, in its sole discretion, is designed or intended to circumvent the intent of this MAP policy, such as solicitations for ‘group purchases’ and the like.
  6. It shall not be a violation of this MAP policy to advertise in general that the dealer distributor, or reseller has “the lowest prices” or will match or beat its competitors’ prices, or to use similar phrases; so long as the reseller does not include any advertised price below that listed by the Ripe Vapes MAP Products list and otherwise complies with this MAP policy.
  7. From time to time, Ripe Vapes may permit dealers, distributors, or resellers to advertise MAP Products at prices lower than the that listed by the MAP Products list. In such events, Ripe Vapes reserves the right to modify or suspend the MAP Products list price with respect to the affected products for a specified period of time by providing advance notice to all dealers, distributors, and resellers of such changes.
  8. From time to time Ripe Vapes may offer a direct manufacturer’s rebate to customers. In such events, it shall not be a violation of this MAP policy to advertise the availability of the manufacturer’s rebate, provided that (a) the advertisement include a MAP policy-compliant price, the rebate amount, and the net price after manufacturer’s rebate in the same type size and style; (b) an asterisk is placed next to the net price after manufacturer’s rebate; and (c) the “*After manufacturer’s rebate” appears in the same area of the advertisement as the advertised product.
  9. Where Ripe Vapes 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: (a) has the effect of discounting the advertised price of the covered product below the MAP Product list price or (b) violates the letter or spirit of the MAP policy. It shall be a violation of this MAP policy if products are bundled with or sold as part of a package that includes products not pre-approved by Ripe Vapes.
  10. It shall be a violation of this MAP policy to include in any advertising for Ripe Vapes 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 price listed in MAP Product list. Advertising that includes an additional discount, coupon, gift card, points, or any other incentive for future purchases (regardless of whether the future purchases is of a Ripe Vapes product) shall be evaluated under the same guidelines as described in Section 9 regarding product bundling. For example, a gift card redeemable on a future purchase would be considered an “other product” under Section 9. This Section 10 shall not apply to any manufacturer’s rebate from Ripe Vapes on Ripe Vapes products or its partners’ products.
  11. It shall not be a violation of this MAP policy to advertise that a customer may ”call for price” or “email for price”, or to use similar language, specifically with respect to Ripe Vapes products, so long as no price is listed or the price listed is not less than that shown on the MAP Products list.
  12. If a dealer, distributor, or reseller with multiple store locations violates this MAP policy at any particular store location, then Ripe Vapes will consider this to be a violation by all of the dealer, distributor, or reseller’s locations.
  13. Although dealers, distributors, and resellers remain free to establish their own resale prices, Ripe Vapes reserves the right to cancel all orders and indefinitely refuse to accept any new orders from any dealers, distributors, or resellers following Ripe Vapes’ verification that the dealers, distributor, or reseller has advertised any MAP Products at a net retail sales price less than the MAP Products list price established by Ripe Vapes, or if dealer, distributor, or reseller has violated this policy in any other way. Ripe Vapes does not intend to do business with dealers, distributors, or resellers who compromise the perceived value of Ripe Vapes and its products. Ripe Vapes may monitor the advertised price of dealers, distributors, or resellers either directly or via the use of third party agencies. Third party agencies retained by Ripe Vapes may engage in monitoring of any advertisements. The Ripe Vapes policy administrator shall be solely responsible for determining whether a violation of the policy has occurred, communicating decisions to dealers, distributors, and resellers regarding the policy, and receiving any communication regarding actions taken under this policy.
  14. Ripe Vapes’ sales representatives are NOT permitted to discuss this policy or make any agreements or assurances with respect to Ripe Vapes’ MAP policy regarding dealers, distributor, or reseller advertising or pricing. This also includes any consumer program or promotion that affects the below listed MAP Products. Ripe Vapes sales personnel or other employees have no authority to modify or grant exceptions to this policy. Therefore, all questions or comments regarding this MAP policy are to be directed to the policy administrator at Ripe Vapes; Justin Otten Purucker 591 Constitution Avenue, Camarillo, CA 93012, justin@ripevapes.com.
  15. This MAP policy has been unilaterally established by Ripe Vapes to help ensure the legacy of Ripe Vapes as a top producer of high performance, high quality, professional vaping products and to protect the reputation of its name and products. The MAP policy is also designed to ensure dealers and distributors have the incentive to invest resources into services for Ripes Vipes’ customers.
  16. Ripe Vapes reserves the right at any time to modify, suspend, or discontinue the MAP policy in whole or in part or designate promotional periods during which the terms of the policy change or designate periods of time during which the policy is not applicable. Policy modifications shall be made available on the Ripe Vapes’ website www.ripevapes.com.