COMP PERFORMANCE GROUP™ UNILATERAL PRICING POLICY

Over the years we have striven to support the 3-tier distribution chain, as our company ultimately relies on the success of our resellers. We believe that it is critical for us to work together in order to strengthen everyone's positions in the performance aftermarket. In an effort to preserve brand value and a healthy distribution channel we will be implementing the Unilateral Pricing Policy.

The Unilateral Pricing Policy (UPP) sets a Minimum Retail Price (MRP) for all COMP Performance Group™ products. This policy is designed to curb price slashing among CPG retailers, enabling them to remain profitable in this highly competitive business environment.

TERMS & CONDITIONS:

WHY IS CPG INTRODUCING A UPP? CPG is introducing a new pricing policy to maintain the long-term strength of its brands, to confirm that only quality dealers carry the products and to verify there are sufficient margins for these valuable dealers to continue to support CPG.

WHAT IS THE NEW PRICING POLICY? The Unilateral Pricing Policy (UPP) establishes a Minimum Retail Price (MRP) - the price a consumer actually pays - for CPG products.

WHO DOES THE POLICY AFFECT? The policy affects any merchant that sells to consumers. This includes, but is not limited to jobbers, retailers, online dealers, warehouse distributors, auction sellers or auction sites.

HOW CAN IT BE VIOLATED? A violation is defined as the sale or advertising of a CPG product(s): Below the stated MRP which are bundled together at a price below the aggregated MRP of the individual items on a website with ambiguous pricing such as: "See Price in Cart," "Make Offer," "Bid," rebate funds, customer specific funds, or "Instant Message Me for Pricing."

WHAT ARE THE PENALTIES FOR VIOLATING THE POLICY? Once a violation is discovered, the reseller will automatically be penalized in accordance to their first, second or third offense.

HOW LONG WILL I BE PENALIZED FOR? Duration and severity increase for each respective violation. Penalties and the full policy can be downloaded HERE

HOW DOES UPP WORK WITH MSP? The UPP replaces any and all MSP terms and conditions.

ARE DISCONTINUED PARTS INCLUDED IN THE UPP? No, all discontinued parts are excluded from Minimum Retail Pricing. Please refer to the price sheet for all part numbers that fall under the UPP.

WHEN WILL THE NEW PRICING POLICY GO INTO EFFECT? The UPP will go into effect January 1st, 2021.

WHAT BRANDS DOES THE UPP APPLY TO? UPP pertains to all CPG brands including COMP Cams, FAST, TCI, RHS, ZEX, Powerhouse Products, VThunder and COMP GoParts.

DO I SIGN THE PRICING POLICY? You do NOT sign our pricing policy - this is a unilateral policy - meaning after the UPP goes into effect all dealers passively choose to accept it or not.

IS THIS LEGAL? This is legal. U.S. antitrust law states that it is lawful for manufacturers to adopt a policy regarding resale prices and to deal only with resellers that independently choose to follow the policy. Many companies in other industries have already implemented similar programs.

Please address any questions to the CPG Unilateral Program Administrator at 3406 Democrat Road, Memphis TN 38118 or email [email protected] *Note-Only the CPG UPP Program Administrator is the only person authorized to answer questions regarding the CPG Unilateral Pricing Program.