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Effective February 1, 2017, Zoetis has introduced a Unilateral Pricing Policy (this “Policy”). This Policy applies to each authorized Zoetis distributor and reseller (each, a “Reseller”) located in the United States, and covers each product for which a “Suggested Minimum Resale Price” is included in the Price List provided by Zoetis to such Reseller from time to time (each, a “Covered Product”).

The intent of the policy is to (i) protect the resale margins of Resellers to encourage them to continue to provide the high level of services and infrastructure which our end-users expect and deserve, (ii) encourage Resellers to invest in the promotion and service of the Covered Products, (iii) promote interbrand competition between the Covered Products and third-party products and (iv) maintain the premium brand image of the Covered Products and the goodwill of consumers.

While each Reseller remains free to set its resale prices for Covered Products independently and in its sole discretion, Zoetis reserves the right to cease to supply Covered Products to any Reseller who advertises or sells Covered Products at a price below the communicated Suggested Minimum Resale Price. The applicable price shall take into account all offered discounts and rebates, other than such discounts or rebates which Zoetis may expressly authorize a Reseller to provide below the Suggested Minimum Resale Price.

This policy is unilateral and does not represent an agreement between Zoetis and any Reseller, and Zoetis does not and will not seek or accept agreement with respect to resale prices. As such, this policy is non-negotiable and individual representatives are not authorized to alter, waive, modify or negotiate this policy. Resellers are free to advertise and sell any Covered Product at a price of their own choosing, however, violations may result in loss of product supply. Zoetis may amend or withdraw this Policy in its sole discretion.