Dear Domestic Hyperlite Retailer

4.14.08

I.e. Marek Distribution

Dear Domestic Hyperlite Retailer,

Hyperlite has worked vigorously to provide the retailer and just as important, the end user with the most innovative, best marketed, team inspired hardgoods and softgoods in the market place, and we are excited about the upcoming release of our first 2009 product Rusty Malinoski’s Hyperlite pro model the Marek.

HO Sports Company Inc is a global business operating in 86 different countries. We have a dedicated distributor network that has the expertise and dedication to our industry. The Launch of the first 2009 Hyperlite product serves as the perfect time to set the stage and implement our international distribution strategy moving forward. Starting with the 2009 Marek there will be no Transshipping or Re-wholesaling of this product as defined below. The Launch of the Marek is also providing the road map to our 2009 distribution policy which will be implemented in August as we roll out the complete 2009 product line. This gives the domestic retailer plenty of time to plan your business knowing what our international distribution direction will be.

Marek Distribution Policy Explained; This policy shall not give the Dealer any rights to sell the 2009 Hyperlite Marek to individuals or entities which are likely to engage in transshipping (defined below), or re-wholesaling (defined below). All such sales shall only be domestic sales (sales originated, finalized and shipped both from and to places located within the fifty United States). Violations will result in loss of volume discount, allowances and/or termination of both Dealer and Electronic Commerce agreement.

Transshipping defined as but not limited to the following; Transshipping is the result of a domestic retailer shipping Products outside of the 50 United States. Example; Authorized retailer in the United States ships goods to individual in Germany

Re-wholesaling defined as but not limited to the following; Sales and shipment of products to an unauthorized HO Sports Company Inc. domestic or international retailer. Example; Authorized retailer in United States ships goods to an Unauthorized Retailer in Germany

Enforcement; If HO Sports Company Inc. /Hyperlite are made aware of any violation of this policy by any retailer, HO Sports Company Inc. /Hyperlite shall have the right to revoke Internet Sales and/or stop shipment of all unfulfilled orders for the period of 30 days. A second violation by the same retailer shall result in the loss of volume discount and freight allowances. Third violation will result in termination of both Dealer and Internet Commerce Agreement for one model year. Reinstatement of the Dealer and Internet Commerce Agreement will solely be decided by the President and Vice President of Sales of HO Sports Company Inc. /Hyperlite

For any more questions pertaining distribution of the 2009 Marek please contact you sales representative