Hot Racing Minimum Advertised Price (MAP)Policy

Hot Racing, has unilaterally determined to implement this Dealer Minimum Advertised Price (MAP) Policy effective as of October 31st, 2014, which is applicable to each dealer located in the United States, that offers any or all Hot Racing products to end - users (individually, the “Dealer” and collectively, “Dealers”) with respect to each of the Hot Racing products for which a minimum advertised price ("Minimum Advertised Price” or “MAP” and referring to either the singular or the plural or both, “MAP (s)”) is specified on the price list(s) or product list(s) provided or otherwise made available to the Dealer by Hot Racing or otherwise communicated by notice from Hot Racing to the Dealer (individually, a “ MAP Product” and collectively, the “MAP Products”)

Mission

Hot Racing is building on decades of experience  and innovation that provides a distinct competitive advantage for its products in the marketplace.  Hot Racing end-users expect quality, affordable products with complementing support from both Hot Racing direct and our network of dealers.

Hot Racing has adopted this Policy to discourage Dealer advertising that focuses primarily on the price.  This Policy is intended to help Dealers maintain the margin necessary to invest in store locations, store displays, trained staff, marketing, merchandising and parts support and service that Hot Racing users expect.  The goal of this policy is to strengthen all aspects of the Hot Racing brand, benefit Dealers which comply with this Policy and benefit Hot Racing end-users who enjoy the support of successful, professional Dealers.

Application

This Policy applies to all forms of advertising and promotion (regardless of the medium used) done by and on behalf of the Dealer, including, but not limited to conventional advertising, catalogs and price information relating to one or more of the MAP Products that can be accessed directly through any hypertext link, by any other method which uses hypertext transfer protocol (http) or which Hot Racing considers to be the substantive equivalent (e.g.,e-mail or social media). When applied to the Internet, both outside - the - cart (or other container) and in - the - cart (or other container) prices are considered offers which are subject to this Policy.  Other examples of media to which this Policy applies include without limitation flyers, posters, coupons, mailers, inserts, newspapers, magazines, online forums, banner advertising, newsletters, e - mail solicitations, television, radio, texting and signage visible outside a brick and mortar store.

Violations of this Policy

The Dealer violates this Policy by advertising or otherwise offering or making available, whether by advertising, promotion, proposal, quotation or otherwise and regardless of place or medium used (individually and collectively, “advertising” or “offering” and their variants), one or more of the MAP Products at a net adjusted price less than the corresponding MAP(s) established by Hot Racing from time to time and communicated to the Dealer. However, this Policy pertains only to advertised prices and does not cover actual selling prices, so the Dealer remains free to sell Hot Racing products at any prices it chooses.

This Policy also is violated if the Dealer uses particular terms in advertising or engages in certain activities.

Net Adjusted Price

At the same time, free or reduced- price shipping may be offered by the Dealer without it being considered to be a discount when offered in connection with a purchase that includes at least one of the MAP Products, as long as such offer or provision applies to all other products in the category (as determined by Hot Racing) in which such MAP Product or such MAP Products reside(s)and the value thereof is reasonable (as determined by Hot Racing).

Violation Examples

Minimum Advertised Price 

Hot Racing, at any time, may vary the Minimum Advertised Price for a MAP Product or add to or delete any or all of the MAP Products, which may, among other things, be based on whether such product(s) is or are offered or sold under or subject to one or more select Hot Racing program(s) or any other Hot Racing policy or in any other situation announced by Hot Racing from time to time. Hot Racing will endeavor to provide prior notice of each new MAP or such change in the MAP Products, generally not less than five (5) days in advance. While Hot Racing will communicate each MAP and such change through the price list(s) or product list(s) provided or made available to the Dealer electronically or otherwise, the Dealer is responsible for making sure that it is aware of the appropriate MAP(s) and the MAP Products in each circumstance.  

The Exemptions

Each of the following is exempt from this Policy, except as otherwise expressly indicated:

Violation Consequences

Each violation of this Policy is cumulative, and the same act(s) or failure(s) to act may result in multiple violations if not addressed as required by this Policy, so, during the period that this Policy is in effect (the “Policy Period”):

For the first violation during the Policy Period: The Dealer will remove or stop or cause to be removed or stopped the offending reference(s), text or conduct (if Hot Racing determines that it or they can be) after receiving notice of such violation from Hot Racing(a), in the case of a violation involving the Internet, no later than one (1) business day later, and (b), in all other cases, no later than three (3) business days later or by the conclusion of the time period otherwise specified by Hot Racing(collectively, the “Allotted Period”).

For the second violation during the Policy Period:

In the event that(a) the offending reference(s), text or conduct that caused the first violation is or are not removed or stopped (if Hot Racing determines that it or they can be) within the Dealer Minimum Advertised Price (MAP) Policy - within the Allotted Period or (b) the Dealer otherwise violates this Policy a second time, effective as of the date specified in notice from Hot Racing to the Dealer and continuing for the next ninety (90) days, the authorization of the Dealer to purchase each stock - keeping unit (“SKU”) in the product family involved in the second violation (as determined by Hot Racing) will be immediately revoked by Hot Racing, so that all pending orders (even if accepted) from the Dealer will be cancelled and no new orders will be accepted from the Dealer for each such SKU.

For the third violation during the Policy Period:

In the event that (a) the offending reference(s), text or conduct that caused the second violation is or are not removed or stopped(if Hot Racing determines that it or they can be) within the Allotted Period after receiving notice of the second violation from Hot Racing or (b) the Dealer otherwise violates this Policy a third time, effective as of the date specified in notice from Hot Racing to the Dealer and continuing until Hot Racing provides notice to the Dealer otherwise, if ever, the authorization of the Dealer to purchase any or all of the Hot Racing products designated by Hot Racing will be immediately revoked by Hot Racing, so that all pending orders (even if accepted) from the Dealer will be cancelled and no new orders will be accepted from the Dealer for any or all of such products.

For the Dealer purchasing any or all Hot Racing products from one or more distributors, this Policy will be enforced through a Do- Not - Sell List provided to all distributors.  

The Nature of this Policy

Effective as of the Policy Effective Date, this Policy supersedes and cancels each other policy from Hot Racing, if any, regarding minimum advertised prices and resale prices or either thereof for the MAP Products applicable to the Dealer.

For any reason(s) deemed appropriate by Hot Racing(including without limitation based the request of the Dealer for Hot Racing to consider such things as, but not necessarily restricted to, limited - time promotional offers for an event in which the Dealer is participating or otherwise), but, in no case other than as the unilateral decision of Hot Racing, this Policy may be modified, extended, waived, suspended, discontinued or rescinded in whole or part by notice from Hot Racing any time (including without limitation during any Hot Racing- designated promotional period(s)), with such action(s) effective immediately or as otherwise described by Hot Racing. If Hot Racing negotiates a price with an end-user that is less than the MAP(s) and provides the Dealer the opportunity to

offer to fulfill one or more orders at such price, acceptance by the Dealer of such opportunity will not constitute a violation of this Policy.

Regardless whether expressly indicated in this Policy, each notice referred to herein: (a) may, as determined by Hot Racing, be given in writing or electronically (including without limitation posting on a website) and (b) will be considered to be received as designated by Hot Racing. The Explanation, if any, accompanying or associated with this Policy is intended to help answer questions in connection with it, but is not part of this Policy. In the event of any disagreement over the interpretation or enforcement of this Policy, the view of Hot Racing will control.

Hot Racing will not discuss any conditions of acceptance related to this Policy. In addition,Hot Racing neither solicits, nor will it accept, any assurance of compliance with this Policy. Notwithstanding anything to the contrary which may be expressed or implied in or by one or more agreements between the Dealer and Hot Racing, nothing there-in shall constitute an agreement by the Dealer to comply with this Policy, as, among other things, this Policy is not and should not be construed to be one of the Hot Racing Policies as such term is or may be used in any or all of such agreements. Questions, Additional Information or Potential Violations All questions or requests for additional information regarding this Policy or information regarding potential violations of this Policy (which must be in writing) are to be addressed to the person at Hot Racing responsible for this Policy (the“Hot Racing Policy Administrator”):

Hot Racing

Policy Administrator

P.O. Box 2138

Temple City, CA 91780

Fax: 603-595-1498

e-mail: help@hot-racing.com

Only the Hot Racing Policy Administrator or the expressly designated representative(s) of the Hot Racing Policy Administrator is or are authorized by Hot Racing:(a) to speak on behalf of Hot Racing regarding this Policy, including without limitation answering questions or commenting on it, (b) to interpret or alter this Policy in any way or (c) to accept information regarding potential violations.