Dealer Polices and Guidelines

DEALERSHIP POLICIES:

1. Authorized Dealership:  Where marketing efforts or warranty service requirements dictate, REE will establish “authorized dealerships”. These will be reviewed annually each April. Based on sales history (all REE products), and REE's evaluation of past performance (as listed in the section below), REE will determine whether the dealership is renewed. REE will also use the annual dealer status review to determine the dealership credit limit and the dealers discount structure for the upcoming season.
2. Dealership Territories:  In general REE does not establish defined dealership territories. Our goal is to ensure that each product that we sell has adequate service and marketing representation in any given area. To accomplish this we may choose to establish one dealership in a given location or we may choose to establish multiple dealerships. In general especially in small communities we will refrain from establishing multiple dealerships that sell the same products. Several dealerships may be established to serve metropolitan areas with several adjacent communities that are interconnected.
3. Annual Dealer Review:  The status review will consider the following:
   1. Total sales - dollars. Total sales - products.
   2. Service capability and record.
   3. Payment history and status.
   4. Sales demographics.
   5. Marketing efforts and effectiveness
   6. Customer satisfaction.
4. Dealer Status: Dealerships that sell less than $2000 worth of REE product in a twelve month period may be considered inactive and the territory served by that dealership may be considered in need of a new dealership. REE may also close dealership credit accounts at the discretion of REE management.

MARKETING GUIDELINES

1. Though dealerships do not have exclusive territories, REE strongly discourages dealerships from aggressively promoting and selling into markets served by other local dealerships. REE believes that a vital network of cooperating sales and service dealerships is the most appropriate long-term marketing strategy for most of our products. REE may choose (at any time) to terminate the dealership authorization of dealerships that are unwilling to cooperate with this strategy.
2. REE will not cooperate with dealership marketing efforts specifically designed to sell into another dealership's territory. That is, no advertising co-op support, no drop shipments, etc.
3. Though REE will not aggressively solicit bids for REE products, there may be situations in which it may be appropriate to respond to bids in order to maximize the long-term marketing success of our products.

ADVERTISING GUIDELINES

1. REE vendors and REE offer a variety of advertising co-op programs that vary from time to time and from vendor to vendor. REE will inform dealers about these and other incentive programs by mail. It is the dealer's responsibility to read their mail from REE REE will send frequent notices, but will assume no responsibility for “lost mail” or failure to notice.
2. Dealers should not advertise in other dealership territories though general advertising to open territories is acceptable.

SERVICE RESPONSIBILITIES

1. Manufacturers of various REE products offer customers repair under warranty by authorized dealerships. Dealers that sell these products must provide repair service (even if the unit was sold by another dealer) for these products. This can be provided by the selling company or through an arrangement with a separate company or individual. However, the selling dealer assumes responsibility for ensuring that adequate repair service is available to their customers.
2. REE reserves the right to cancel authorization and/or limit product availability of any dealership that does not or cannot provide repair service for the REE products that they sell.