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

"Net adjusted price" net adjusted price(s) referring to either the singular or the plural or both) means the price at which a MAP Product is offered by or for the benefit of the Dealer to an end - user (potential or actual) and is calculated by:

• taking into account all discounts, deductions, rebates and allowances advertised to such end - user (regardless of source, whether given or taken at the time of sale or otherwise and considered by Hot Racing to be part of such offer or sale), except that an offer or sale using or applying a rebate, coupon or the equivalent (as determined by Hot Racing) will not be considered part of net adjusted price if such rebate, coupon or the equivalent is provided by Hot Racing or its designee(s) directly to such end - user or to the Dealer for provision to and use by such end-user);

• excluding all applicable taxes and all shipping, delivery and insurance charges if to be paid by such end - user (However, if the Dealer offers to pay any or all of such taxes and charges that otherwise would be paid by such end - user, the amount so offered by the Dealer will be considered a discount, except as otherwise provided in this Policy.)

• subtracting, in the case of free goods, services and similar benefits for such end-user provided or made available by the Dealer, the fair market value (as determined by Hot Racing) of all such goods, services and benefits (regardless of Dealer Minimum Advertised Price (MAP) Policy- 2 source, whether given or taken at the time of sale or otherwise and considered by Hot Racing to be part of such offer or sale); and

• subtracting, in the case of reduced - price goods and services and similar benefits for such end - user provided or made available by the Dealer, the difference between the fair market value (as determined by Hot Racing) of all such goods, services and benefits (regardless of source, whether given or taken at the time of sale or otherwise and considered by Hot Racing to be part of such offer or sale) and the amount to be paid for such goods, services and benefits.

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

Among other ways, the Dealer may violate this Policy by doing any or all of the following:

• displaying or using an offer price that is lower than the relevant MAP, including without limitation for Internet offers, as an out-of-the-cart or an in-the-cart price

• displaying or using a percentage reduction from a reference price (by coupon or otherwise) that results in a price less than the relevant MAP

• displaying or using a price for a bundle of MAP Products that is less than the sum of each MAP for the corresponding products

• displaying or using "prices too low to show," "call or e-mail for best price," "click for lower price," "a lower price may be available," "enter your e-mail for lower price" or the substantive equivalent as determined by Hot Racing

• displaying or using a strike - through of any MAP(s) regardless whether one or more other prices is or are shown

• displaying or using a discount, coupon or rebate applicable to any or all of the MAP Products in return for a Facebook "Like"

• displaying or using an invitation to click, visit a location (such as a website, store or showroom) or otherwise communicate to obtain a price, except indicating the ability of end-users to make specific inquiries by telephone or e-mail to obtain a price is permissible, as long as no automated "bounce-back" pricing e-mail or other communication is used

• the failure to show a price for each of the MAP Products depicted, described or to which a reference is otherwise made, except as expressly authorized by notice to the Dealer from Hot Racing

• except as otherwise permitted by this Policy under "The Exemptions" shown

• later in this Policy: (a) the failure to expressly exclude any and all of the MAP Products (using a disclaimer provided by Hot Racing or, if not so provided, a disclaimer acceptable to Hot Racing) from an offer of a coupon, discount or rebate that applies to all or many of the products offered by the Dealer or in a category of products offered by the Dealer relevant to the MAP Products (such as radio - controlled vehicles) when such offer has or would have the effect of reducing the price of any or all of the MAP Products below the applicable MAP(s) or (b) the use of any statement(s) or material(s) promoting such coupon, discount or rebate that mentions, uses, depicts or otherwise refers to any or all of the MAP Products, except for such disclaimer

• other than as expressly authorized by express written or electronic notice to the Dealer from Hot Racing, knowingly or negligently directly or indirectly advertising, promoting or selling any or all items of Hot Racing products (or, if so designated by Hot Racing, just one or more particular items of Hot Racing products) in any or all of the following ways:

  • outside the USA

  • to anyone for resale (except if Hot Racing purchases any such item(s) from the Dealer)

  • on or through an online auction site (such as eBay), except when using a "Buy It Now" mechanism or the substantive equivalent (as determined by Hot Racing), where there is no auction and the price(s) offered is or are not less than the relevant MAP(s)

  • on or through a third - party online marketplace, like that operated by Amazon or any of its affiliate(s) or a marketplace that is the substantive equivalent (as determined by Hot Racing)

  • on or through an online site which is not or is no longer approved by Hot Racing, but the Dealer may advertise, promote and sell such item(s) on its own (non- auction) website, as long as the Dealer has not received notice from Hot Racing disapproving of such site and otherwise complies with this Policy and each agreement between Hot Racing and the Dealer

except as otherwise directed by this Policy, on any or all offers of any or all of the MAP Products provided to or prepared for the benefit of any or all of the Dealer"s potential and actual end - users (individually and collectively, Dealer Minimum Advertised Price (MAP) Policy - 3 "Customer Communications"), the failure of the Dealer to itemize the price charged for each of the products and services shown or referred to on such Customer Communications, regardless whether such Customer Communications contain(s) any reference to any or all of the MAP Products.

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:

• individualized, non-automated e-mail sent or live telephone communication in direct response to a specific end -user inquiry

• in-store materials at a brick-and-mortar location that simply state the price(s) at which one or more of the MAP Products may be purchased, including, without limitation, point-of-sale signs, price stickers and hang tags

• bona fide advertising and promotional materials (including without limitation printed catalogs) that cannot reasonably be modified prior to the Policy Effective Date or the effective date of a change in the MAP(s), the MAP Products or this Policy until such time that it is reasonable to revise such materials (as determined by Hot Racing) to be consistent with this Policy

• the offer under one or more special programs (if any) designated by Hot Racing, provided that the Dealer complies fully with each requirement of such program(s), such as that or those requirement(s) relating to display, if any

• a discount, credit or rebate associated with the use of a specified credit or debit card or a coupon or other discount that would, after its application, result in net adjusted price(s) for any or all of the MAP Products below its or their respective MAP(s), as long as:

  • (a) such discount, credit, rebate, coupon or other discount may be applied to all or almost all of the products offered by the Dealer or, in the case of a category - wide sale (such as radio - controlled vehicles), all or almost all of the other products in the category and

  • (b) none of the statements or materials promoting such discount, credit, rebate, coupon or other discount mentions, uses, depicts or otherwise refers to any or all of the MAP Products

• the accrual of "points" or other things of value ("Loyalty Points") in connection with the purchase of any or all Hot Racing products and the application of Loyalty Points, even if such application results in net adjusted price (s) for any or all of the MAP Products below its or their respective MAP(s), as long as:

  • Loyalty Points may be accrued and applied to all oral most all of the products offered by the Dealer and

  • the everyday accumulation rate for Loyalty Points applicable to the purchase of any or all Hot Racing products is no more than that applicable to all other brands of products offered by the Dealer (regardless of category), except that, as part of a Hot Racing special program, Hot Racing may permit the Dealer to offer for a reasonable, limited time or times (as determined by Hot Racing) a greater accumulation rate applicable to the purchase of any or all Hot Racing products, provided that such offer applies to one or more products of at least one other brand in each of the same category or categories as the MAP Products involved (as determined by Hot Racing)

• the offer of one or more units of any or all of the MAP Products that are used, rather than new, such as demonstration units

• the offer to an employee of the Dealer for his or her personal use (and not for resale), provided that such offer is reasonable (as determined by Hot Racing)

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 canceled 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 of 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.