For over 7o years…

Cerwin-Vega has been synonymous with high-performance audio equipment, delivering unparalleled sound experiences to music enthusiasts, audiophiles, and professionals around the world.  Our journey from humble beginnings to becoming a revered name in the audio industry is a testament to our commitment to quality, performance, and pushing the boundaries of sound.

Cerwin-Vega

POLICY GOVERNING MANUFACTURERS RETAIL PRICE (MRP),
INTERNET ADVERTISING, SALE, AND DISTRIBUTION
OF CERWIN-VEGA PRODUCTS

Cerwin-Vega has adopted the following Manufacturers Retail Price (MRP) policyregardingInternet Advertising,
Sale and Distribution of Cerwin-Vega products.

1. General Policy. This policy is designed to enhance sales and promotion of Cerwin-Vega products and
provide Authorized Dealers with additional opportunities to advertise and sell Cerwin-Vega products.

2. Manufacturers Retail Price (MRP) Policy. Pursuant to this MRP policy, Cerwin-Vega products must not
be advertised below the MRP that is published on the official Cerwin-Vega’s price sheets, except as
otherwise stated in this policy or as provided for from time to time by Cerwin-Vega.

Advertising product below MRP includes where a price or netted-down price is capable of calculation
from the face of the advertisement to be below MRP.

For purposes of this policy, “advertises” or “advertisement” means any communication to prospective
customers that identifies one or more products and can be viewed or heard without entering the retail
storefront of the dealer. “Advertisement” also includes, without limitation, all forms of print and
electronic media, direct mail, and audio and video communications. Any coupons or coupon codes
placed in general circulation that can be coupled with an “advertisement” of a specific product are
also considered “advertisements” within the scope of the policy. A face-to-face communication, a
live/direct phone call, or a direct email communication between the dealer and the prospective
customer in response to a specific inquiry from the specific prospective customer is not an
“advertisement” within the scope of the policy. Subsequent communications from the dealer to the
customer prospect are also not “advertisements” as long as they relate to that same product inquiry.
Thus, unless there has been such a prior face to face or live/direct communication, all of the following
are “advertisements” covered by the policy: All web-site based communications (including, but not
limited to, websites, blogs, social network sites, comparative shopping sites, auction sites, and third
party selling sites such as (www.pricegrabber.com, www.google.com, and www.amazon.com), whether
in form of posted prices, coupons, shopping cart prices, mouse over, or any other price that can be
printed or viewed by the prospective customer; faxes of prices; emails of prices; auto-generated faxes
or emails; instant messaging; and/or any other form of electronic communication, up until the point
payment is taken.

Violation of this policy will result in the below steps to address violations of the policy, unless CerwinVega in its sole discretion and opinion determines that immediate termination of the dealer is
warranted under the circumstances of the violation.

Cerwin-Vega reserves all rights to revise or amend this policy at any time without prior notice.

All references to pricing or prices in this policy are toward advertised prices only, not selling prices.

3. Cerwin-Vega must approve before a Dealer may sell over the Internet. No Authorized Dealer may sell
Cerwin-Vega products through any electronic medium, including but not limited to dealer direct or
Internet alliance sites, electronic auction sites, or any other e-commerce distribution method, unless
Cerwin- Vega Mobile has given its prior express written approval in accordance with this policy. The
written permission will be given only if the Dealer meets the standards established in this policy and
if Cerwin-Vega approves the Dealer at Cerwin-Vega’s sole discretion. Cerwin-Vega will give permission
to sell only specified products and the Dealer may sell only the specified products over the Internet.
The written permission will be considered an addendum to, and will supersede the restriction on
Internet sales in the Authorized Dealer’s Dealer Agreement, but only to the extent necessary to
authorize Internet sales in compliance with this policy.

4. Dealer Standards. Cerwin-Vega will approve sales using the Internet only for Authorized Dealers who
meet the following standards:

• Must be an internet approved authorized dealer and sell only on the authorized dealer’s
web site meeting criteria stated below,

• Must adhere to MRP policies,

• Must adhere to trademark, copyright, and advertising guidelines,

• Authorized for sales in United States only,

• Must provide serial number tracking,

• Must have 18 hour/7 day toll free live order and order status line,

• Must have dedicated customer service call center,

• Must have e-mail support with 24 hour response time

5. Required Internet Site Content. Authorized Dealers may advertise, sell, or otherwise distribute CerwinVega over the Internet only on sites that comply with the following requirements:

• Professional representation of brand image and product, including accurate Cerwin-Vega
information and compliance with Cerwin-Vega’s standards for graphical, picture and
image quality, and resolution,

• Real time inventory status and ship dates disclosed before order completion,

• Online vehicle fit/application guide,

• Shipping rates disclosed before order completion,

• Online ordering on secure web server,

• Email confirmation of order,

• Email notification of order shipment including unshipped backordered items,

• Online order tracking,

• Complete store policies regarding ordering, payment, shipping, returns, and privacy.

6. Distribution to End-Users Only. Authorized Internet Dealers may sell Cerwin-Vega products under this
policy only to retail end-users whose residential addresses are within the United States. Sales for resale
are prohibited.

7. Trans-shipping Policy. Any Authorized Dealer who sells Cerwin-Vega products over the Internet must
comply with Cerwin-Vega’sPolicy regarding trans-shipping, including the provisions concerning the sale
of products to anyone other than a consumer/end user. Cerwin-Vega reserves the right to terminate
its dealer agreement with any dealer who trans-ships Cerwin-Vega products.

8. Enforcement by Cerwin-Vega

First Violation:

Authorized Internet Dealer will receive written notice of the violation of this policy
(“Notification Letter”) and the immediate suspension of dealer’s sales program on all product
shipments and orders that have not yet shipped for a period of up to 30 days beginning on the date
of the notification letter. Once retail pricing compliance has been met, the dealers sales program will
be reinstated immediately.

Subsequent Violations:
For each subsequent violation, if dealer receives more than three (3) Notification Letters for
violation of Cerwin-Vega’s MRP policies during any 12-month period, Cerwin-Vega will immediately
terminate the dealer.

Notes

Attempts to evade this policy through schemes such as (1) changing the name of the business
entity or owner, (2) closing an account and then re-opening another account with Cerwin-Vega, or (3)
buying products through a different Cerwin-Vega dealer without Cerwin-Vega’s written consent will be
treated as new violations of the policy.