matco tools 2010 franchise disclosure document
Transcription
matco tools 2010 franchise disclosure document
MINNESOTA 85 7th Place East, Suite 500 St. Paul, Minnesota 55101-3165 D E P A R T M E N T OF www.commerce.state.mn.us COMMERCE 651.296.4026 FAX 651.297.1959 An equal opportunity employer March 30, 2010 MARK KIRSCH PLAVE KOCH PLC 12355 SUNRISE V A L L E Y DRIVE SUITE 230 R E S T O N , V A 20191 Re: F-2705 NMTC INC MATCO DISTRIBUTORSHIP A G R E E M E N T Dear Mr. Kirsch: The Annual Report has been reviewed and is in compliance with Minnesota Statute Chapter SOC and Minnesota Rules Chapter 2860. This means that there continues to be an effective registration statement on file and that the franchisor may offer and sell the above-referenced franchise in Minnesota. The franchisor is not required to escrow franchise fees, post a Franchise Surety Bond or defer receipt of franchise fees during this registration period. As a reminder, the next annual report is due within 120 days after the franchisor's fiscal year end, which is December 31, 2010. Sincerely, G L E N N WILSON Commissioner By: Daniel Sexton Commerce Analyst Supervisor Registration Division (651)296-4520 GW:DES:dlw F-2705 STATE OF MINNESOTA DEPARTMENT OF COMMERCE REGISTRATION DIVISION (651) 296-4520 IN THE MATTER OF THE REGISTRATION OF: MATCO DISTRIBUTORSHIP AGREEMENT By NMTC INC ORDER MENDING REGISTRATION WHEREAS, an a p p l i c a t i o n amendment f e e have been t o amend t h e r e g i s t r a t i o n a n d filed, IT I S HEREBY ORDERED t h a t t h e r e g i s t r a t i o n dated March 25, 1993, i s amended as o f t h e d a t e s e t f o r t h below GLENN WILSON Commissioner Department: o f Cominerce 85 7 t h P l a c e E a s t , S u i t e 500 S t P a u l , MN 55101 D a t e : March 30, 2010 UNIFORM FRANCHISE REGISTRATION APPETDmON FiieNcLvos y '^<»'C*,»h»rw MAR 2 9 2010 (InSerftHe number of iirunediat^djWfiTfjl \ preceding filing of Applicant) State: Minnesota Fee: $300.00 APPLICATION FOR (Check only one): INITIAL REGISTRATION OF A N OFFER AND SALE OF FRANCHISES _ X _ RENEWAL APPLICATION OR ANNUAL REPORT PRE-EFFECTIVE AMENDMENT POST-EFFECTIVE MATERIAL AMENDMENT 1. 2. 3. 4. 5. 6. Full legal name of Franchisor: NMTC, Inc. d/b/a Mateo Tools Name of the franchise offering: "NMTC, Inc. d/b/a Mateo Tools;" "Mateo Tools;" "Mateo" Franchisor's principal business address: 4403 Allen Road Stow, Ohio 44224 Name and address of Franchisor's agent in this State authorized to receive service of process: Commissioner of Commerce 85 7th Place East, Suite 500 St. Paul, Minnesota 551015 The states in which this application is or will be shortly on file: California, Florida, Hawaii, Illinois, Indiana, Kentucky, Mar>iand, Michigan, Minnesota, Nebraska, New York, North Dakota, Rhode Island, South Dakota, Texas, Utah, Virginia, Washington, Wisconsin Name, address, telephone and facsimile numbers, and e-mail address of person to whom communications regarding this application should be directed: Mark A. Kirsch, Esq. Plave Koch PLC 12355 Sunrise Valley Drive, Suite 230 Reston, Virginia 20191 703.774.1210 (direct phone) 703.774.1201 (fax) [email protected] (E-mail) PK 23142.1 - NMTC, Inc. d/b-'a Mateo Tools / MN MAR 2 6 2010 El€ P L A V E K O C H Mr. Daniel E. Sexton Department of Commerce 85 7'^ Place East, Suite 500 St. Paul, Minnesota 55101 Re: NMTC, Inc. d/b/a Mateo Tools (''Mateo") File F-2705 Minnesota Franchises Law Annual Report and Amendment of Registration Dear Mr. Sexton: Enclosed please find an annual report and amendment of registration submitted on behalf of Mateo to offer and sell distributorships in the State of Minnesota. The application consists of a check for S300.00 made payable to the 'Minnesota Department of Commerce" for the requisite filing fee and the following items: 1 Facing Page. 2. Franchisor's Costs and Source of Funds Form. 3. Franchise Seller Disclosure Form for each individual to be engaged in the offer or sale of distributorships in Minnesota. 4. Certification Page. 5. Uniform Consent to Service of Process Form. 6. Corporate Acknowledgment. 7. One copy of a signed Consent of Accountants. 8. One clean copy of Mateo's franchise disclosure document, including all agreements. 9 One copy of Mateo's Franchise Disclosure Document, which has been red-lined to indicate new or revised information. Plave Koch PLC 12355 Sunrise Valley Drive, Suite 230 Reston, Virginia 20191-3492 United States of America wmv.PlaveKoch.com Mark A. Kirsch [email protected] direct phone 703.774.1210 direct fax 703.774.1201 MAR 2 6 2010 E14 P L A V E K O C H Mr. Daniel E. Sexton Page 2 Please contact me if you have any questions or comments on the enclosed application. Otherwise, we would appreciate receiving notiee that the application has been approved. Sincerely. Plave Koch PLC By: y^^tlMM Mark A. Kirsch Via FedEx Enclosures PK 23661.1 Certification I certify and swear under penalty of law that I have read and know the contents of this application, including the Franchise Disclosure Document with an issuance dale of HAfK (LH ^ 9 , 2010 attached as an exhibit, and that all material facts slated in all those documents are accurate and those documents do not contain any material omissions. 1fiirthercertify that I am duly authorized to make this certification on behalf of the Franchisor and that I do so upon my personal knowledge. Signed at v^ro w/ , ^/i/0 on March /O , 2010. NMTC, Incj, d/»/a Mateo TooV* By: Print Name and Title: STATE OF OHIO COUNTY OF SUMMIT ) ) ) 7»oAy0.k /< A^uu. . MeAS NMTC, Inc. d/b/a Mateo Tools lk Personally appeared before me this day of March 2010, the above-named corporation, to me known to be the person who executed the foregoing application (as ^^^Ci5H/er of the above-named applicant) and, being first duly sworn, state upon oath that said application, and all exhibiis submitted herewith, are true and correct. Notary Public: (NOTARIAL SEAL) My Commission my ^^ommission Expires: / J^/y Aj^^D/d jbBORAH J. GOLU Notaiy Public STATE OF OHIO My Commission Expires July 24, Jifi/^ PK 23142.1 - NMTC, Inc. dVa .Mateo Tools / MN UNIFORM FRANCHISE CONSENT TO SERVICE OF PROCESS NMTC, Inc. d/b/a Mateo Tools, a corporation organized under the laws of the state of Delaware (the "Franchisor"), irrevocably appoints the officers of the States designated below and their successors in those offices, its attomey in those States for service of notice, process or pleading in an action or proceeding against il arising out of or in connection with the sale of franchises, or a violation of the franchise laws of that State, and consents that an action or proceeding against it may be commenced in a court of competent jurisdiction and proper venue within that State by service of process upon this officer with the same effect as if the undersigned was organized or created under the laws of that State and had lawfully been served with process in that State. We have checked below each stale in which this application is or will be shortly on file, and provided a duphcate original bearing an original signature to each state. Califomia: Commissioner of Corporations Rhode Island: Director, Department of Business Regulation Hawaii: Commissioner of Securities Soulh Dakota: Director ofthe Division of Securities Illinois: Attomey General Virginia: Clerk, Virginia State Corporation Commission Indiana: Secretary of Slate Maryland: Securities Commissioner X Washington: Director of Financial Institutions Minnesota: Commissioner of Commerce Wisconsin: Administrator, Division of Securities, Department of Financial Institution New York: Secretary of State North Dakota: Securities Commissioner Please mail or send a copy of any notice, process or pleading served imder this consent to: N M T C , Inc. d^/a Mateo Tools 4403 Allen Road Stow, Ohio 44224 Dated: March /t> , 2010. NMTC, Inc. d/b/a Mateo Tools By: Print Name and Title: PK 23142.1 - NMTC, IDC. d/b/a .Mateo Tools / .MN ^tt/lS^ A , Mfo. . "^ASt^/fe^ CORPORATE ACKNOWLEDGMENT STATE OF OHIO COUNTY OF SUMMIT ) ) ) Personally appeared before me this //) NMTC, Inc. d/b/a Mateo Tools day of March 2010, the above-named corporalion, lo me known to be the person who execuied the foregoing application (as ^ ^ f A'^fjrpy* of the above-named applicant) and, being first duly swom, state upon oath lhat said application, and all exhibits submitted herewith, are true and correct. Notary PubHc: (NOTARIAL SEAL) My Commission iviy v^ommission Expires: ~f J i MO/i) >t.DORAh J GGLL Notary Public STATE OF OHIO My Commission Expires J'J!V PK 23142.1 - NMTC. Inc. dli-'a Mateo Toob / MN '^^.^D/£> NMTC, INC. d/b/a MATCO TOOLS FRANCHISOR'S COSTS AND SOURCE OF FUNDS 1. Disclose franchisor's total costs for performing its pre-opening obligations to provide goods or services in connection with establishing each franchise, including real estate, improvements, equipment, inventory, training and other items stated In the offering. Category Costs Real Estate Improvements Equipment Inventory Training Other (describe) None None None None $6,926 None Totals $6,926 2. State separately the sources of all required funds: General fund allocated to training budget. PK 14096.1/Matco Tools/Franchisor's Costs and Source of Funds form Acknowledgement of Independent Auditors We agree to the inclusion in the Franchise Disclosure Document issued by NMTC, Inc. ("Franchisor") of our report, dated March 9, 2010, with respect to the financial statements of Franchisor as of December 31, 2009 and 2008 and for the three years in the period ended December 31, 2009. Baltimore, Maryland March 24, 2010 FRANCfflSE DISCLOSURE DOCUMENT NMTC, INC. d/b/a MATCO TOOLS 4403 Allen Road Stow, OH 44224 (330) 929-4949 ddevelop@-matco_toois.com (email inquiries) w^v w. m atco too 1 s. com This Disclosure Document provides information regarding the operation of a Mateo distributorship. Mateo is a manufacturer and distributor of professional qualit\' mechanics' tools and ser\'ice equipment (the "Products'"). If you enter into a Distributorship Agreement with Mateo, you will purchase, resell, and ser\'ice the Products, which currently consist of more than 15.000 items, as a mobile distributor under the Mateo System. The total investment necessar>^ to begin operation of a Mateo Distributorship ranges from $79,926 to $4X718.8,556. This includes the following payments to Mateo: approximately $50,000 to $60,000 for the minimal inventorv'; $18,000 for the Time Payment Rcser\'e Account; $799 for the initial software license fee: SM9400 for the software support and maintenance fee: and $195 for the webpage set—up fee; but there is no initial franchise fee that must be paid lo Mateo or an affiliate. This disclosure document summarizes certain provisions of your distributorship agreement and other information in plain English. Read this disclosure document and all accompanying agreemenis carefully. You must receive this disclosure document at least 14 calendar-days before you sign a binding agreemeni with, or make any payment to, the franchisor or an affiliate in connection with the proposed franchise sale or grant. Note, however, that no governmental agency has verified the information contained in this document. You may wish to receive your Disclosure Document in another format lhat is more convenient for you. To discuss the availability of disclosures in different formats, contact Mateo's National Franchise Sales Department at 4403 Allen Road, Stow, OH 44224; phone: 330-929-4949. The terms of your contract will govem your franchise relationship. Don't rely on the Disclosure Document alone to understand your contract. Read all of your contract carefully. Show your contract and this Disclosure Document to an advisor, like a lawyer or an accountant. Buying a franchise is a complex inveslment. The information in this Disclosure Documeni can help you make up your mmd. More informaiion on franchising, such as ''A Consumer's Guide to Buying a Franchise," which can help you understand how to use this Disclosure Document, is available from the Federal Trade Commission. You can contact the FTC al l-877-FTCHELP or by writing lo the FTC at 600 Pennsylvania Avenue, NW., Washington, D C. 20580. You can also visit the FTC's home page at www.ftc.gov for additional information. Call your state agency or visit your public librar\' for other sources of informaiion on franchising. There may also be laws on franchising in your state. Ask your stale agencies about them ISSUANCE DATE: March 30^009 29. 2010 I © Copyright 3^-HW20J^, NMTC, Inc. d/b/a Mateo Tools I Maico F D D ' P K - S l - ^ ^ ——— — i:^-^-f?»23766.6„„. , „^2t?ilO STATE COVER PAGE Your state may have a franchise law that requires a franchisor lo register or file with a state franchise administrator before offering or selling in your state. REGISTR.AT10N OF A FRANCHISE BY A STATE DOES NOT MEAN THAT THE STATE RECOMMENDS THE FRANCHISE OR HAS VERIFIED THE INFORMATION IN THIS DISCLOSURE DOCUMENT Call the state franchise administrator listed in Appendix F for infomiation about the franchisor, about other franchisors, or aboutfranchisingin your state. MANY FRANCHISE AGREEMENTS DO NOT ALLOW YOU TO RENEW UNCONDITIONALLY AFTER THE INITIAL TERM EXPIRES. YOU MAY HAVE TO SIGN A NEW AGREEMENT WITH DIFFERENT TERMS AND CONDITIONS IN ORDER TO CONTINUE TO OPERATE YOUR BUSINESS. BEFORE YOU BUY, CONSIDER WHAT RIGHTS YOU HAVE TO RENEW YOUR FRANCHISE. IF ANY, AND WHAT TERMS YOU MIGHT HAVE TO ACCEPT IN ORDER TO RENEW Please consider the following RISK FACTORS before you buy this franchise: * 1. THE DISTRIBUTORSHIP AGREEMENT REQUIRES YOU TO RESOLVE DISPUTES WITH US BY ARBITRATION ONLY IN THE STATE OF OHIO. OUT OF STATE LITIGATION OR ARBITRATION M A Y FORCE YOU TO ACCEPT A LESS FAVORABLE SETTLEMENT FOR DISPUTES. IT M A Y ALSO COST Y O U MORE TO SUE OR ARBITRATE WITH MATCO IN OHIO THAN IN YOUR HOME STATE. *2. THE DISTRIBUTORSHIP AGREEMENT ST.ATES THAT OHIO LAW GOVERNS THE AGREEMENT, AND THIS LAW MAY NOT PROVIDE THE SAME PROTECTIONS AND BENEFITS AS LOCAL LAW. YOU MAY WANT TO COMPARE THESE LAWS. 3. THERE M A Y BE OTHER RISKS CONCERNING THIS FRANCHISE. *State laws may supersede these distributorship agreement provisions. Certain states require the superseding provisions to appear in an addendum to this disclosure document (See Appendix H). We use the services of one or more FRANCHISE BROKERS or referral sources to assist us in selling our franchises. A franchise broker or referral source represents us, not you. We pay this person a fee for selling our franchise or referring you to us. You should be sure to do your own investigation of the franchise. Effective Dale: See next page for stale effective dates. © Copyright l^.mO}n, NMTC, Inc. d/b/a Mateo Tools I Malco FDD'PK ti:i^';a^'2."i.76(>.6 3<2iVll) STATE EFFECTIVE DATES The effective dates of this Franchise Disclosure Document in the states listed below arc: STATE EFFECTIVE DATE CALIFORNIA November 24, 2009 FLORIDA Febmar>'3, 2010 HAWAII ILLINOIS March -3a-.-20(i929. 2010 INDIANA March 307-2(M)925..2010 MARYLAND Apff4-27-2009 MICHIGAN Maroh-30r-2(M)9 MINNESOTA NEW YORK March rH)-3(40922. J M O NORTH DAKOTA RHODE ISLAND .May-4-,-3(H)9 SOUTH DAKOTA UTAH VIRGINIA I .\1aiL0 FDD'PK 5 ! Sy.i;- Januar>-20,20I0 ApriiAYyj^im WASHINGTON Apfii 1(^2(409 WISCONSIN MTtfeh-3%^)09 Mateo® Tools FRANCHISE DISCLOSURE DOCUMENT INDEX ITEM (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) 39 (20) (21) (22) (23) DESCRIPTION PAGE THE FRANCHISOR A N D A N Y PARENTS, PREDECESSORS, A N D AFFILIATES BUSINESS EXPERIENCE LITIGATION BANKRUPTCY INITIALFEES OTHERFEES ESTIMATED INITIAL INVESTMENT RESTRICTIONS ON SOURCES OF PRODUCTS A N D SERVICES FRANCHISEE'S OBLIGATIONS FINANCING FRANCHISOR'S ASSISTANCE. ADVERTISING. COMPUTER SYSTEMS. A N D TRAINING TERRITORY TRADEMARKS PATENTS. COPYRIGHTS AND PROPRIETARY INFORMATION OBLIGATION TO PARTICIPATE IN THE A C T U A L OPERATION OF THE FRANCHISE BUSINESS RESTRICTIONS ON WHAT THE FR.\NCHISEE M A Y SELL RENEWAL, TERMINATION. TRANSFER A N D DISPUTE RESOLUTION PUBLIC FIGURES FINANCIAL PERFORMANCES REPRESENTATIONS 34 35 35 39 40 OUTLETS AND FRANCHISEE INFORMATION FINANCIAL STATEMENTS CONTRACTS RECEIPTS 41 55 55 55 I 3 5 9 9 13 15 18 20 22 25 31 33 34 APPENDICES Appendix Appendix Appendix Appendix Appendix Appendix Appendix Appendix Appendix I Mateo FDD'PK A: B: C: D: E: F: G: H: 1: Financial Statements Active Distributors Tenninated Distributors Distributorship Agreement Distributor Disclosure Questionnaire State Agency Exhibil Agents for Scr\ ice of Process State-specific Disclosures and Stale .Agreement .Amendmenls Mateo Distributor Consent to Alcohol and Drug Testing Fomi — —— ~ —-—ra-4UWiP237C6.6 2129l\Q (1) THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AN^AFFILIATES Mateo and Its Predecessors NMTC, Inc. d/b/a Mateo Tools ("Mateo") is a Delaware corporation, incorporated on January 12, 1993, with its principal office at 4403 Allen Road, Stow, Ohio 44224, telephone number (330) 929^949. References to "you" in ihis Disclosure Document mean the person(s), corporation, partnership or other entity purchasing a Mateo Tools Distributorship. Mateo is a wholly-owned subsidiar\^ of Mateo Tools Corporation ("'MTC"), and operates as an indirect wholly-owned subsidiary^ of Danaher Corporation ("Danahcr"). M T C is Mateo's parent company. MTC is a New Jersey corporation with its principal office al 4403 Allen Road, Stow, Ohio 44224. Danaher is a Delaware corporation, with its principal place of business at 1250 2 lLli SticcL >>-W.2U99 Pcnnsvlyania Avenue, NW._Suitc 1200, Washington, D.C. 3^)0^20006. Mateo does business under the name '"NMTC, Inc. d/b/a Mateo Tools," ''Mateo Tools," and "Mateo," and under no other names. Mateo's agent for serv'ice of process in this state is disclosed on Appendix H and/or on the acknowledgement of receipt pages which are the last pages in this Unifomi Franchise Disclosure Document. Mateo is a manufacturer and distributor of professional quality tools, tool boxes, and ser\'iee equipment. Mateo has developed a distinctive business system (the '"System") relating to the establishment and operation of Mateo mobile distributorships which sell tools, tool boxes, service equipment, and olher goods and ser\ ices, including, for example, apparel, model cars and other collectible items, and consumables (such as mechanic's hand soaps), and such other items that Mateo may in its sole discretion offer (collectively, the "Products"). Mateo mobile distributors offer and sell Products to professional mechanics and other businesses which operate from a single location and purchase tools for their own use. The Products currently consist of more than 15,000 items, many of which are manufactured by or for Mateo, and are distributed by .Mateo and sold to our distributor network. The System is identified by means of certain trade names, service marks, trademarks, logos and emblems, including the marks "MATCO®" and "MATCO® TOOLS" (the "Marks'^). MTC began offering distributorships in 1979, and since then MTC and Mateo (beginning in 1993) have sold the majorit)' of the Products ihrough independent distributors throughout the United States. As of December 31: ^00X2002, there were 1,443462 independent distributors selling MATCO® Products in the United States. The distributorship agreement offered and described in this Disclosure Document differs from agreements Mateo entered into with its distributors before 1993, in that the current distributorship agreement provides for additional duties and obligations for both parties. Mateo also sells the Products through conmiercial sales representatives to businesses and„cducational institutions including_studcnts_wilh central purchasing operations, multiple locations, stale,Jo_cal_and_federaI agcncie$_and/or to other commercial account customers who generally purchase tools for their own use. In 2OOH2009, these sales accounted for approximately 6^.3% of Mateo's revenues. Mateo-i^as-in-the-past opefate<tH?ti^-3s-ol-Prioj_to_Dcceniber 31, 2005-does,jVlatco_Qperated_disJributoi^Mps,_but Matco_di.d not opcrate;^anv_djstri.butojshins_iii_2i)0fLthr^^^ operates six distributorships. Mateo may also employ persons or utilize independent manufaemrers' representatives and__speciali/ed_resellcrs_to make sales calls and to support cusiomers in specific af<^market segments. Mateo also uses export distributors and agents to promote its products in locations outside of the United StateSMalco has ofTered franchised distributorships since 1993. Other than as indicated in this Disclosure Document, Mateo (or prior to Februarys 1993, its predecessor MTC) has not offered distributorship agreements, franchises, or business opportunities in any other line of business. Mateo is not engaged in any business olher than tlie manufacmre, distribution, sale and sen icing of tools and equipment as described in this Disclosure Document. Mateo's affiliates have not offered franchises similar to the distributorship described in this Disclosure Docunient or in anv other lines of business. Malco FDD'PK ^44^23_7:66.6 MTC is a predecessor of Malco. MTC was formerly known as Mae Allied Tools Corporation ("Mac Allied"), an Ohio corporation, incorporated in September 1946. Mac Allied changed its name to Malco Tools Corporation in August 1978, and in April 1981, Mateo Tools Corporation was acquired by and became a wholly-owned subsidiar\' of Chicago Pneumatic Tool Company ("CP"), a New Jersey Corporation. Mateo Tools Corporation was merged in July 1984 into a sister company of CP, The Jacobs Manufacturing Company ("Jacobs"), a New Jerse>' corporation, incorporated in July 1953, and became known as "Malco Tools, a Division of The Jacobs Manufaemring Company." In June 1986, Danaher purchased CP and later sold it in June 1987, retaining Jacobs, including its Mateo Tools Division. Jacobs' name was changed to Malco Tools Corporation in November 1991, and the other divisions within Jacobs were established as separate operating companies. In January 1993, Danaher formed NMTC, inc., which acquired a substantial portion of the assets of MTC, including the existing distributorship agreements of MTC. Danaher is involved in various businesses, including the tool, automotive and environmental process control markets, as well as medical, water treatoient test and fuel dispensing equipment. Through various subsidiar>' companies, Danaher manufactures and sells such major brand names as Allen® \wenches and tools, Jacobs® Chucks, Ammeo® brake lathes. Coats® tire changers and equipment. Fluke® multimeters, Bada® wheel weights. Radiometer® and Gendex® medical diagnostics, Hach® and Lange® water test and measurement equipment, Gilbarco®A'eeder Root® fuel dispensing and test and measurement equipment, KAVO® and Pelton & Crane® dental technologies, Leica Microsystems® medical technologies, Sybron® dental consumables, and Teehtronix® test and measurement technologies. Ln_2M5,JSjalc_o_Jool_sJ^anadaj"MatcodC Province_of.„Ontario, Caiiada,_bA ps_in_Canada._MatcoCanada,dQes_not_operate_MalcQ_distributorships,_andJiasjiQt_offeredJVaiic^^^ The_generaLp-artneLof MatcojLCanada,_NMTC-PiytnersJnc.._is,a wholly-owned subsidiaty oL^lalCjD. MatcQz Canadals_princ_ipal_bus_iness address iS-J_j-obert Speck^Parkway, Suite_l6()p^lissis5auga,.Xjn L4Z I S l . The Distributorship Rights Offered Malco offers you the right to enter into a distributorship agreement (the "Distributorship Agreement'")^ whieh grants you the right to purchase, resell, and ser\'ice the Products as a mobile distributor under the System (the "Distributorship"). A Distributorship is a business which operates principally from a vehicle, purchases the Products from Mateo, and sells the Products to retail customers. These retail customers are t>'pically individual mechanics, or businesses that operate from a single location, and who generally purchase the Products for their own use. You must operate the Distributorship only at the localions ideniified as potential stops along your proposed route (the "List of Calls") and identified in the list of potential customers (the "Potential Customer List"). The List of Calls and Potential Customer List will be attached to the Distributorship Agreement. In addition lo the Distributorships, Mateo also sells the Products through its Commercial Sales Department. The Commercial Sales Department generally sells tools to companies, insurance replacement companies, govemment agencies, or other entities or businesses that purchase tools for their intemal use. Tlie tools are not generally the personal propert>' of the mechantes employed by sueh companies. Generally, the prospective purchasers from the Commercial Sales Department are companies, insurance replacement companies, govemment agencies, and similar entities that may purchase tools from other national tool companies, or factor>^ and warehouse distributors, but not from individual distributors. Mateo also ser\'es the vocational school marketplace through a direct sales program. Products are sold to technical schools or training facilities, and/or directly to the individuals attending such schools or facilities. Products sold to full-time students and schools may be discounted in order to remain competitive. ConimcrciaL$ales_custoincrs_alsojua>:Linclude_auto gndjnick^dealc_rslvips_that_participatcjii_deal_e^ _with_onginal_equip_mentjiianufaeturer^(oLj^ OEM progranis ma>Mncludc tool storage. shop_equipmcnl_andj3ther^productsjionnallv_purchascd_b>Lihc,bLi5inessjLnaiionai_accotint_discounts._M^^ Maico F D D ' P K ^1*^2,1766.6 2 ij:^^if?.0'Ji-'29.']0 m^^ from time to time develop coupon or incentive programs with various national accounts or manufacturers. Several other tool suppliers may compete for these accounts, and pricing is very competitive and significantly below list price. This generally prevents a single distributor from being competitive in such markets. Mateo presently has a distributor commission program which pennits its distributors to join forces with Malco to assist in closing sales to accounts where a single distributor working alone would be unable to do so. This program provides an opportunity for you to receive a commission on industrial accoimt sales and/or vocational school sales closed by Mateo, with your assistance, with a business identified on your List of Calls. Commissions will consist of a credil posted to the Distributor's Open Purchase Account on products or ser\'ices delivered to a location on the List of Calls. Commissions are not based on the Billing or Administrative Office address ofthe industrial account purchaser. The Distributor niay^ be required to provide ser\Mce to the location in order to receive commissions. The actual ser\ice schedule will be determined by the business during the sales process. Ser\'ice requirements may include unpacking and set-up ofthe initial and/or on-going orders. warranl\^ ser\'iee, and/or participation in tool shows or seminars. The Commercial Sales Commission Program (which may include vocational sales) ma>' change during the term of your Distributorship. The Distributor must be registered in the system as tlie "serv^icing distributor," and actively promote the sales, in order to receive commissions on any commercial or vocational sales. A Distributorship generally competes with mobile tool vendors who sell to professional mechanics and are associated with national tool companies other than Mateo. Other sources of competition include independent mobile tool vendors who are not associated with a national tool company, local automotive tool and equipment warehouses, local automotive parts stores, local department and hardware store chains and mail order catalogs. Your List of Calls and Potential Customer List may already be serv^ed by competitive tool vendors. To operate the Distributorship, you will have to comply with various stale and local laws such as those relating to driver's licensing, vehicle I icons ing.^vcnd.QiLjiccnsin g^ and automobile insurance requirements. In some states, a physical examination may be required to obiain a license to drive a commercial vehicle. Most states require liabilit> insurance coverage for both the driver and vehicle. Insurability and insurance rates will generally be dependent upon your past driving record. The information in this Disclosure Document is current as ofthe date indicated as the Issuance Date on the cover of this Disclosure Docunient. (2) BUSINESS EXPERIENCE Mr. Comics has-been a-Diixjcter of MTHCO and- Chief Financial Officer of DanaiiGr-smce April 20i>-5^—Ho has A^Hl-^-U05-midA^4ee-President~C^i^>GKat&Dev€4opH}enFoi'43aiiahei-froHi^ jarties H Dilkoff. Oirecter oK>anaher-sittee-Septen»bei~l-9.SJ4r Robert S- Lutz. V\ce President and.Director Since July 2004, Mr. Lutz has been a_Vice ..President_and_Dircctor of Mateo. Mr. Lutz joined Danalier Corporation in July 2002 in the position of Vice President-Audit and Reporting and was appointed Vice President-Chief AccounfAccounting Officer in March 2003. Hcjyas,appoinlcd_Senior3!ice__Presideni-Chicf .Acco.unJingj3fficerjjuMarch_2jllO. Thomas N. Willis. President Mr. Willis has been the President of Mateo since May 1996. Mr. Willis was General Manager of GE-Jiabao Lighting Co., Ltd. in Shanghai, China from October 1995 imtil May 1996, and he was General Manager, GE Automotive Lighting for GE Co. in Cleveland, OhiofromOctober 1988 through October 1995. Frank T,_McFaden, Vice President. Assistant Treasurer^and^Digector Mr., McFadcn_h as_b_cen_ a „Vi ce.Prcsiden t, ^A ssis tan t Jfrcas u rer_and_ Directorof Mate o„sincc,M a>;„200_5_,_He,.h as al_SQ-been,a^ice.Presi_dcnt_aii_djrre since March,2il03. j§n^s^f j^^g'lly? y^gg-£cesideiit.aud^Sec_r^ Mr.-QlRj;;illvJias_bceiuhcJ/liccJ^esid£nt.and3ccreiar^ and^_ssQci atsLGeneraLCQun.sel-Qr DanabcrXorpora limun JfeisMnfttQn^C.-sin£c_ J an uaoL2004. Laurence.S^Smith. \L'ce_President Mr. SmitlLhas been a Vice_President_Qf MatccLSincc June 2008. He ioined Danaher Corporation in Mary 2007 Lnjhe^position of Director,J^4&A Tax and was apRointed Vice^esldgnt^ Ta\;_iii_Margh 2jM0. MCy^iithjygg. an_aUmie>.:-wiih_Mcrck.&Xajn AVash^ ay_2O0_Z Char)es..ASchwertiicr^Assistant Secret Mr,^cjiwertnerjias beeii_the Assistaiit Secretaty and_As$jstantjrrcasurcr of Matc.Q_sinceJ3.ecem_ber2003 and has beenjiie Tax Dij_gcto^r of Danaher Cgi^op^^^ Thomas M. Hill. Vice President. Finance, and Treasurer Mr. Hiil has been the Vice President, Finance, and Treasurer of Mateo since Jaimary 2007. Mr. Hill was Director of Finance - Danaher Corporate Audit in Washington, D.C. from October 2005 to January 2007, the VP of Finance and Administration for Oldcastle Retail, Ine. in Charlotte, NC from October 2003 to October 2005; a Director of Finance from October 2002 to October 2003 and Director of Financial Reporting from September 1999 to October 2002 for Acleraa Corporation in Research Triangle Park, NC. T-imoihv J-GilmoFe;Eniest_C_Lauber. Senior Vice President. Sales Mr. G^tmovoLaubcr has been thgthc^Senior Vice President, Sales of Mateo since .htl\^^^:K)-3March_2U,Ul, and was the Directot^t^Gtistou^ei^ef^4ee-ai^d--D&S-ol-Malce-t'ffim-SepleaibeM-^^^ November—1-999. - Miv Gtln>OFe--was--alsG-lhe-Cjet^ei•aI44anageI^f^ile-^ADA-Divi5i<)t^-o^-He^lH^ Eniesi C. L mi ber. Vice President, Marketing and eConimerce Mr—Laubet-has-t^een the Vioe^-Presttleni:- Mafkefifig-and-eComffleiee-ef_vvith Malco smeefrom September 2005 to„iVI:^eh-2_(U.Q, and was-a Hardline Product Vlanager wkh Mateo from 1997 to Januarys 2002. Mr. Lauber was also Team Leader with the Danaher Tool Group in Gastonia, North CarolinafromJanuan.' 2002 to July 2003, and Vice President, Marketing at Delta Consolidated Industries in Hunt Valley, Mary landfromJuly 2003 until September 2005. Anthonv D. Stohlmever. Vice PresidenL Human Resources Maico FDD'PK ^W^2.1766.6 4 C^^Ui^3/2!i'.l_0 Mr. Stohlmever has been the Vice President, Human Resources of Mateo since Februarv^ 2006. Prior to joining Malco, Mr. Stohlmever was the Director of Human Resources for Danaher's Sensors and Controls Group from March 2004 until February 2006. Prior to joining Danaher, Mr. Stohlmeyer was the Director of Human Resources for Slater Steel in Fort Wayne, Indiana, with responsibilit\' for U.S. and Canadian operations from June 1999 until March 2004. Michael K. Smith. Sr.. Vice President. Materials and Engineering Mr. Smith has been the Vice President, Materials and Engineering since January 2003 and was the Director of Materials and Engineering from November 1998 until December 2002. He held the position of Director of Materials with MTC from November 1997 to November 1998. Richard M. Smearcheck. Director. Financial Ser\'ices Mr. Smearcheck has been the Director, Financial Ser\'ices of Mateo since March 2008 and was the Manager, Open Purchase Accounts of Mateo from March 1987 until March 2008. MichaeLS.,SwansQti,,Nalional_DjstributorJ3ev-elopment_Manager Mr. Swanson has been,the National DistributOL.DeveIopment Manager of Mateo si_nce_Juiy 2007. He was_a M atcQ_Reft iimaLM ari_a.t;er_CrQm_ JanuaniZOOrLiin ti Liu I V-2M7_and-tlie^ati on al^raneli i s ^ a l csJVlan aseiiftam Ju ne_2002_un ti L Jan_uar\L2iHH^Pri or_to_ J une^2002,iy4r ..Swan sonJi eid.positio ii sjaLNati on aj_Sal csjDc ye 1 opmcn t M ail ager ,_M anagc_r_of_[) i stribu lOjMC.onimunication s,_Di strict_Bi.j si ncss_Ma n age^and _slartcd_hi s„ea reer__>vi th M atCD_in^l 988_a s_a_Mob i leJIoo LDistribu tor. In addition, Mateo currently has a policy under which it will give one or more Mateo tool boxes free to an existing distributor or a Danaher employee for referring a prospect who becomes a Mateo distributor (3) LITIGATION PENDING ACTIONS A. As of December 31, 2 ^ 2 0 0 9 . and from Januarv I, $00^2010 through Febmarv- 15, 2()()y2^1j), except as otherwise noted, the following eases have been filed against (or involved cases with counterclaims alleged against) Mateo and/or its current or previous affiliated companies by current or previous Mateo distributors and/or district managers, and, in some cases, by distributors jointly with their spouses. The infonnation below also includes any individuals who are current Mateo officers, directors, or employees and named as additional defendants. Except as otherwise indicated below: (I) relief sought is in an undisclosed amount: (2) Mateo and any other listed defendants deny the allegations; (3) the complaints allege nondisclosure, omission and/or misrepresentations regarding: eamings potential, personal and business expenses required, capital required, financial risk, exclusive namre of territory, sufiiciency of territory' and customer base, training and assistance, warranty and tool retum policies, and failure rates; and (4) each case is in the pretrial stage. None. B. Mateo Collection Aciions. During the fiscal year ended December 31,500^*2(109, Mateo filed claims against distributors for monies owed to Mateo for goods sold and delivered to the distributor. The following is the one matter that was pending as ofthe end ofthe fiscal year. Malco FD1>/PK 44^^2,17i66.('> ij^^i^^yj'):\i) NMTC, Inc. d%.h Malco Tools, a Delaware Corporalion v. Billy C. Downey -^—Mary -Ktfv l)owncyPierre_&_Mq,^riela Se_gers: Ohio, American .Arbitration Association, Atlanta, Georgia office. Case No. 53 155 aO646-O»E_a0533 09 (filed Doccniber, 2n08Septemher,_2Q02). Claims: Mateo filed a claim against Respondent for monies due and owing from goods sold and delivered to Respondent under several agreements including but not limited to a Distributorship Agreenient. Damages Sought: $44T464.16'I9.846.20. The matter is pending. CONCLUDED ACTIONS During the 10-year period immediately preceding December 31, 2OOK2009, and from Januar\" 1, 2<4092Q l ^ through Febmarv^ 15, 20^2jll_Q, except as oiherwise noted, Malco and/or its current or previous affiliated companies, and/or one or more of its current employees, have been the subject of the following legal proceedings (or were the subject of counterclaims in the following legal proceedings), which have since been concluded. These cases were initiated by current or previous Mateo distributors, and, in some eases, by distributors jointly with their spouses. Unless otherwise indicated: the plaintiffs alleged some or all of the following: (i) fraud, (ii) misrepresentation, (iii) violation of a franchise law, business opportunity law, or seller assisted marketing plan law, (iv) unfair or deceptive practices (including states' "Little FTC Acts" and interference (with business advantage, with contract, or otherwise), and (v) breach of contract (including breach ofthe implied covenants of good faith and fair dealing). A. The following cases were resolved, at least in part, in favor ofthe plaintiff: FHlkli=-Vr-NA'lI4^/ner-d^/ef-^4oh^^^bf^ j^eekdftle County:—No^—CV 2(i69j—(filing August 1. 2i)i)5). Gkw+H^^^—fraud,—ne^Ugeftt «iisrepresentation;-tortious-iniQrferencQ with a busmass rglationsiiip, sevoFe-emotional distress-and mental angiush: ReHof—a»id.-or Damages Sought-—compensatoiy -damages, puniiive-damages; !esti{uHmh-ins«r^Hee~tJiat-efedit--repoi1^^-w ill-re (1eet--HO--(lerogaw fflid-a-trial bv^iiHV:—Plainiiff-filed-a-Nolieo of Voluntary-- Di.smis-sal of Complaiti(—fef-Damages v{>luntariiy-<hs}»iissing-ihe-GoHiplaiHi -wiitroirtt piejitdieer --M Maico Tools filed a demand for .Arbitfatiou (filed November -1, 20(tjM-submitted to the .Americtm Arbitniiion .\ssocialion, Clovoland, Ohio offico, Case No. 53 181 E 00S16 05. Claims: Breach of Disiftbuloiship .Agreementr—Rolief-and Damages Soueht^—e-ellecfion-of the S2K,53? owed bv -MFT Fuller-:—The-matier was ai'bitialod on Maroh 8, 2006.—On-March-16. 2006 Maleo-rceeived-lhe •A^biUation Award-and Plainllff"Was4equifed"io--pay-Mate(>--!v2 ^tJ5—P-laiittift^as-Tiks-feqtHred^eH^ein!bui^e--lvlaieo-for—$-1^^ ef-Pla i Hi4fl-s-eou «teFelai4ti s-wete-deiviedT NMTC. Inc. d'b/a Malco Tools, a Delaware Corporation v. Marlowe-. Ohio, American Arbitration Association, Cleveland, Ohio office. Case No. 53 180 E 00474 06 (filed July 17, 2006). Claims: Mateo filed a claim against Respondent for monies due and owing from goods sold and delivered to Respondent under several agreements including but noi limited to a Distributorship Agreement and Proniisson' Note. Damages Sought: $21,265.85 plus attorney"s fees, interest and arbitration costs. On October 20, 2006 Respondent filed a counterclaim against Mateo. Claims: Breach of Distributor Agreemeni and Incentive Agreenient and fraudulent inducement to enter into Distributor Agreenient. Damages Sought: 5124,500.00 plus attomey"s fees, interest and arbitration costs. On Januar\^ 31, 2007, Marlowe agreed to dismiss with prejudice all counterclaims asserted against Malco and pav Mateo the sum of $16,992.00 bv or before March 2. 2007. Mateo FDD'PK ^44^2.1766.6 6 i,.:^iii4W.l;2>>:i() NMTC. Inc. d/b/a Mateo Tools v. David G. Mast; Tennessee, In The Chanceiy^ Court Of Sullivan Count\s Civil Action No. K0032162 (filed August 21, 2002). Mateo filed a Complaint for a temporarv' restraining order to enforce a non-compete agreement against Defendant, a terminated distributor. Defendant filed a motion to dismiss and the following counterclaims: breach of contract, tortuous interference with contract and economic relations, fraud, unfair competition, imfair trade practices, wrongful termination and unjust enrichment. Relief and/or Damages Sought; Acmal damages upon each of the listed counts in an amount not less than $75,000 for each coimt, punitive damages in the amount of 5500,000 and judgement for costs of litigation including reasonable attomey fees and expenses. On March 26. 2003, Mateo agreed to dismiss with prejudice its Claims againsi Defendant in exchange for Defendant dismissing with prejudice its counterclaims against Mateo. No other consideration was exchanged. NMTC. Inc. d^b/a Malco Tools v. Duane L. Ward: Tennessee, In The Chaneer\^ Court Of Sullivan County, Civil Action No. C0016390 (filed August 21, 2002). Mateo filed'a Complaint for a temporar>' restraining order to enforce a non-compete agreement against Defendant, a temiinated distributor. Defendant filed a motion to dismiss and the following Counterclaims: breach of contract, tortuous interference with contract and economic relations, fraud, unfair competition, unfair trade practices, wrongful termination and unjust enrichment. Relief and/or Damages Sought: Acmal damages upon each of the listed counts in an amount not less than 575,000 for each count, punitive damages in the amount of $500,000 and judgement for costs of litigation including reasonable attorney fees and expenses. On December 16, 2002, Mateo agreed to dismiss with prejudice ils Claims against Defendant in exchange for Defendant dismissing with prejudice its counterclaims against Mateo. No other consideration was exchanged. B. The following eases resulted in confidential settlement agreements (unless otherwise indicated below) entered into after April 25, 1993 between the parties on the dates so indicated whereby Mateo agreed to pay a sum of nione>' to the plaintiffs and/or forgive debt as set forth below: CoUins V. Mateo Tools Corporation, A Division of Danaher Corporation & Mike Ramey: Alabama, In the Circuit Court For Jefferson Count\; Civil Action No. CV02-6642 (filed November I, 2002). Claims: Deceit, legal fraud, misrepresentation, suppression and breach of contract/estoppel. Relief and/or Damages Sought: Damages in an amount which will adequately compensate for injuries and damages sustained plus post judgment interest and court costs. The case was removed to The United States District Court For the Northern District of Alabama, Southem Division: Civil Action No. C V 02-N-2943-S (December 3, 2002). Mateo and the plaintiff participated in mediation before a trial, and agreed lo settle this matter. Mateo paid the plaintiff $45,000. Both parties signed a settlement agreement and release. The case was dismissed on December 3, 2003. LaRussa v. NMTC. Inc. d/b/a Mateo Tools, a Delaware Corporation.. Arizona, In The Superior Court Of The Slate Of Arizona In And For Tlie County Of Pima; No. C20056258 (filed November 9, 2005). Claims: breach of contract, tormous interference with business expectancy, intentional iiilerference with contractual relations, tortuous bad faith and negligence. Relief and./or Damages Souglit: relief in such a sum of money as to adequately compensate Plaintiff for damages to be proved at trial, stamtorily authorized attomey fees and costs, punitive damages and further relief as the Court and Jur\' deem appropriate and just. On October 30, 2006, plaintiff put forth a settlement demand of $122,473. On April 25, 2006 Mateo successfully removed the ease from the above State Court to The United States District Court for the District of Arizona, Tucson Division; No. CV-05-751-TUC-FRZ (filed April 25, 2006). On June 19, 2007, the plaintiff agreed lo accept Mateo's offer of $43375 to resolve the disputed issues. Settlement and release documents were signed June 29, 2007. <'hioHi~^'r~A4t!f(¥f-Pool^h}C , a 'k 'o iykimflH.'r-4y{*rfH>r&iHjrh-a^if-fhe~^l{H:ohs •Mamtlficturin^ ConifHmy ar-l^iiNMTtyyT^ 2-2—i-997-)—Qaims^—ffcene\--b>^stoppeh-aeitmMHid-eoHslrHtei4^\-e-fr-aud—iiegltgetit-iius*^^^ .\iaico FDD'PK ^i*W^2.1766.(> 7 !>;KiiJ4Wi_;2y.a0 breaeh--of-eentfaetT4>reaeh-ol4mplied--e©ntfaevpmHbve--tiamagesHH*P^ tortious interferetiee with an eiuployment or business oppoilunity-conversion, negtigenco. negiigont hiring and retention—breach—of-the-eovenanl of good faith and fair dealing, deceptive-acts and prncnccj, broach of fiduciaiy duties.—The complaint nllogcs fraud, conccalmont oiid/or omissions fegarding-failyre-rate,-lefritory-suFvey^tsiH^s-e.^:pensesrbreakeve(F-t^ traiimig-an4-Siippoi-l7-saies-and-eafiHngs-p6tential. Rolicl^aHd./or Danlages-Se^ight^-Judgnt8nt-agaittS^ Mateo-foK-Tie lual -tlam ages-ifl-exee5S-ol-S3 (W)::()()*:Vi reble-aml-pum tive-dam ages-m-4lte-atnomH-ol^alr4eas t $lO,<H)(),n(jii. oosts -aiid attorneys--fees, imposition of-a cett&tructive trust, jury—trial—debtor-s propriotarv' businosG records in Mateo's possession and a doolarulion that Mateo occupied a fiduciaiy role and had fiduciaiy duties to its dealers. To resolve the disputed isiiucs, on April 22, 1999, tho parties entered-into o-Scttlgmeni and Roloase .Agreement whereby Mateo agreed -to pav-Plainliff S7-7r50ti.(:M>r Pcirenh-vr~NM^-<yyrIi^^^f^^^'*^4ak;f^-l^mls^R€iy leminO: am4-I)(nf-f^FrafrrG(>imee^{ii-S^ipr-Ghr4iu^ Disl. Of Litchnold (Pocket No. CV 97 00737615) (filed May 9, 1997); Pa.n-m v. hem ine. Perratr and Maico Tools. .Aincnoan .Arbitration .\5s0ciati0n. Clovoland, Ohio (Arbitration No. 53E1 M 0081 9S) {-referred-to aibitrator, No^'eniber 30, 1998),—Claims:—fraud; unl'air trade prnciicesj-mtentional inlerfere*ice-wit h-eontfaeiual-f elatiof 1 s—Relief^iid/oF-Dam ages-Sottglit^Hienelai^^d aiiiages-iu-exeess of-!U^;W0;r-pHivitjve-dafnages7-atteFneys—fees and-eosts^and-reseisston-efAe-agreeitient^-Te-feselve lhe--diSpuied-is5ues;--on--Sepiernbei-4-5r-4999---4he-pai-4ies-eH4ered--i Agroomont, whorcby Maico agreed to pay Plaintiff $'16,118.75 nnd discharge debt of 51,800. Whife-v-Maico Tooi^ (Yorporaiion-und V-inceni Terrociano:. Florida. Circuit-Coun-.-yth-U)dv"Gir-7T 44iljsboiough Coimty: No, 95-7821-1 (filed December L 1995).—Claims: fraud: misrepresentation: negiigetu-iH*sfepresentatien:-bieaeh-of eeHtl•aet~"iH^eiUiOHa^-iH^liv^ion-of-emelioHa^d ef^erida-Stamtcs 501.201. ol scqT^-^^^^rHj^-and 559.809 (see commem^T?-m-ihe-iHiFoduetoty paragraph to ihis Item-regarding-HtttuFe of-ftUegations):—Relief-amVor-l^twwges-Seught^peeiai-aml general-damages in an mispecified amoim4-in e.xcess of-S5<),0(K). attorneys' foes, interest, costs ;md juiy trial. To rosolve-the-disputed issues. o»-May 7, 199X, tho parties-agreed to-enter-into a Settlement and-Geiteral-Release-.Agreemeni wher-ebv Malco ngrocd to pa} -the pIaiiuUr $l7,397.4t»-afid-disehafge debt-6l-$-3(^rO^T C. Malco Collection Actions. During the fiseal year ended December 31, 2tjO82{)09. Mateo filed claims against distributors for monies owed to Maico for goods sold and delivered to the disUibutor. The following -1-^2 matters were resolved by the end ofthe fiscal year. NMTC, Inc. d/b/a Malco Tools, a Delaware Corporalion v. l'odd A'.-Jant't-HHi'kt^iy^igejifyJZ.,^^^ Ohio, American Arbitration Association, Atlanta, Georgia office. Case No. 53 4-l-5-O07-6-tiH155 E [j.0.?-l^„O.^j.Jj. (fi'ed Febmar>^24Hf^March,^2009). Claims: Mateo filed a claim against Respondent for monies due and owing from goods sold and delivered to Respondent under several agreements including but not limited to a Distributorship Agreement. Damages Sought: $2t,00l.9n.5^.909.3_l. On Ju-I \ 23. 200 8Sep tem ber_ __l .5 ,___2009 this matter was concluded with Mateo being awarded $21,004.90. 5_9,909.33, NMTC, Inc. d/b/a Malco Tools, a Delaware Corporalion v. Tvdd P^arri:-^ -<^Diomie-l^m--isi—Qli IOT A^iKH4eaiwV[%itfattf)n-AsscK:iation:-Atlanta. Georgia olTicer-Gast 2^)0S)r-Gianns-^Mateo-fited-a-claim-againsl ResjMMident-for monies due-and owing fioin good^-sold and delivered-to RespoiKlent-twdcr several agreements tne4udiHg but not limited to a-Distributorship AgreemeHt—Dnmago;.; Sought: 519,149.13 On Oclobor iO. 2008 Mateo soUled ihis motteF^wtlt Respe*K{errtsiJaymg-Sl-l70t)W:004n-casl*T .Malco FDD'PK ^4*^23766.6 NMTC. inc. d^^et^latco Tools, a iy)elaware-Cof'pm--tiUon v. James tfe Chrtstme-I^kin^hrislopher & Tori Teal; Ohio. American Arbitration Association, Atlanta, Georgia office. Case No. 53 155 0 0 2 ^ 0^;E 00158 09 (filed Maw 2()08March, 2009). Claims: Malco filed a claim against Respondent for monies due and owing from goods sold and delivered to Respondent under several agreements including but not limited to a Distributorship Agreement. Damages Sought: $^>5-87jT47.71,628.22. On Qeiftliei^4^-40O8June 30. 2009 this matter was concluded with Mateo being awarded $?^V19 kS^Tl,62122. Uhyo-\'Iaico-Took.-(i~l}elaw{ifv-C(>r(K>raiion v. WiUiam D. l^erry ond-Korri-l—P-crry; ^an-Afbivmt ^A^Claims: geotls-soki-mid-^ieliveFed-to-RespeHdent-iuidei-sever-al-agieenietvB-ineludittgDiStfil>mefship^^reeBiefvlT--Daniages-Sought^74r9t^T95T--Th6--ai4>itr Mateo^aftHai^-8r^)0Kr NM'TC, Inc. •d-h/a-McKco-'l^tols, a Delaware CorfHmnirm v. ScoH^iessor ^Michele Re.^.sor: Qhio, .'Vmcricnn Arbitfiition Ansociation, Atlanta, Georgia olUcc, Case No. 53 155 00210 08 (filed April, 2008->~Qa Hti s^ .M ateG-4iled--a-elaiin-agaiti sl-RespotKl ent--feF-riK)fliesKhie--a aHd-delivered-te-Respondentr-tm^ieF^ver-al-agieements inchidmg-but-*tet-limited to a Dtslributoi^ilvip A^reen^efit:—Da*nages~-Soui»htr—S9<:W>23-.9t^—The afbitfatimi-{le*riaiid-was—\vniKhawn-b\^.MateG Other than tliese44-5^jthe_8 actions^escribed_above, no litigation is required to be disclosed in this Disetosure-Doeumen tlteni - (4) B A N K R U P T C Y No bankmptcy is required lo be disclosed in this Diselosut-e-DeeumeBtTltciii^ (5) INITIAL FEES No Initial Fee There is no initial franchise fee payable by you for the Distributorship. Initial Inventor\^ Purchases You are required lo purchase an initial inventory of Products from Malco (the ''New Distributor Starter Inventory") before the date you begin operating your Distributorship. In some instances, >our initial inventorv' may be acquired from a predecessor distributor. Currently, the minimum New Distributor Starter Inventor\' is generally $54,000. However, this amount may not be unifomi for all Distributors, and nia\' range from $50,000 to $60,000 (see Item 7). _^In 2009, Mateo may--i(K^iv^ase--d>e-nHmmtuH-ieeonim DH;tf4butor—Starter Inventoiy io $59,<?00:—In—±008, the minimum New Distributor Starter Inventor*- was generally $54,000, even though the New Distributor Starter Inventory ranged from S?520,000 to $?6^,000 (depending upon the inventon.- selected). If > ou qualify, all or a portion of the cost of the New Distributor Starter lnventor>- may be fmanced through Mateo (see Item 10). Ifthe Distributorship Agreement is terminated, you may retum certain Products to Malco for credil. The credit will be applied to your account, or a refund will be given to you, in accordance with Mateo's tool retum policy Maico FDD'PK >.'>i,S2.1766.6 then in effect when such Products are remmed. Mateo's current tool remm policy^ provides that Mateo will accept Products that are not used, abused, incomplete, discontinued, or special ordered items. In addition. Products must be relumed in their original container and packaging. A l l Products that Malco accepts under the tool remm polic>^ will be subject to a 15% restocking charge. Mateo may modify the tool return policy from time to time. Except as specified in Mateo's tool retum polic>', the cost of the New Distributor Starter Inventorj' is non-refundable. Time Pavment Reserve You must, at the time you sign the Distributorship Agreenient, deposit an amount into your "Time Payment Reserve" account held by Mateo. The amount of the Time Payment Reser\'e account deposit may^ var\' from Distributorship to Distributorship, but Malco requires a minimum deposit of $18,000. The purpose of the Time Payment Reser\'e account is to provide a source of funds in addition to cash collections to assist you in maintaining your inventor\' at adequate levels during the early developmeni of your Distributorship. Credit sales made by you lo your customers are referred to as "Time Payment" sales. When you make a Time Payment sale, you will extend personal credit to finance the customer's purchase of Products. You establish the terms and conditions for Time Payment sales to your customers, such as down payment, repayment schedule, interest charged, credit limits, and creditworthiness. However, Mateo generally recommends that you require full payment on Time Payment sales in five to nine weeks. As you extend credit for Time Payment sales, you bear the risk of loss due to non-payment. Time Payment sales typically comprise a significant percentage (generally about 70%) of most distributors' sales. Every week you will be required to send Mateo, via the MDBS Software (defined below), at our headquarters your current Time Payment activit>'fromyour business records. Your Time Payment Reserve account will be accessed automatically by Mateo, on your behalf each week. The amount withdrawn from your Time Payment Reserve account will be used to pay for your Product inventorypurchases. The amount withdrawn will be detemiined by calculating the net change in your time pay-ment balances from week to week. The net change in your time payment balances, which is expressed as the retail cost of the Products sold, will be discounted by a factor lo determine the approximate net cost value of the change in your time payment balances. The time payment transfer transaction will be drawn out of your Time Paynient Reserve account and the credit will post direcUy on your weekly open purchase account statement. Transfers from your Time Payment Reserve account to pay for Product purchases will occur during periods of growth of your Time Pa>'nient sales balances. During periods within the first twelve months of business or when Time Payment sales balances decrease below Mateo's required levels, you will be required lo deposit additional funds in your Time Payment Reser\ e account. Mateo will invoice your open purchase account and credit your Time Payment Reserve account to fund the replenishment. Mateo's current policy provides that if, at the end of twelve months following your commencement of operations, there is any balance remaining in the Time Payment Reserve account, and your inventorv' meets or exceeds the starter inventon- level, that amount will be credited by Mateo al__ils_opt'on_to >our open purchase-aocounteither your__Open_Purehase Account_or_proniissory_notc. If your inventorv- level falls below that of the starter inventorv', the Time Payment Reserve must be used to increase your inventorv' to the level of your original starter inventor^'. Any remaining Time Payment Reserve will be credited to your Open Purchase Account or PLQill!ssQD'_notc. A l l Time Payment Reserve account monies on deposit vvith Mateo will eam interest al a rate of one quarter of one percent (1/4%) over the Fannie Mae Home Loan-b: bank money market rate as reported in Barron's. At all times the money on deposit in your Time Payment Reserv e account remains in your personal account to be used only as described above. The deposit to the Time Paynient Reserve account is required ofall distributors, althougli it may not be unifonn in amount. Malco FDD-PK ^•A^ii^2:Offi.6 10 i^-^i) 0^3y2^nO Transfer's of Time Pavment Accounts Receivable Ifyou are replacing an existing Mateo distributor who is retiring or selling a Distributorship business, you may be offered the opportunity to purchase the preceding distributor's outstanding Time Payment accounts, if any, from the List of Calls and Potential Customer List. Under normal circumstances, Mateo's policy is to recommend that you purchase the Time Payment accoimts from the previous distributor in accordance vvith current industrv' practice, which is to purchase qualified Time Payment accounts at 75% of their value. This percentage may only be exceeded vvith Mateo's prior written approval. Mateo also normallyrecommendsthat you settle the Time Payment accounts vvith the previous distributor only after you have had at least thif^tvv-cntv:^fiyc_(2_5) business days to evaluate the creditworthiness of the Time Payment accounts purchased. Upon mutual agreement of you and the previous distributor, payment is typically effected by a transfer of funds on deposit with Mateo from your Time Payment Reserve account to the previous distributor. There may be accounts with higher balances from the previous distributor that can be collected by you (without purchasing the accounts). The recommended policy on these higher balance time pavment accounts allows you to keep 15% of the weekly collections and remit the remaining 85% to the previous disttibutor via the "Collected in behalf process in MDBS Software. This percentage may only be exceeded with Mateo's prior vvritten approval. Computer Software License Expenses Mateo has developed computer software for the exclusive use of its distributors. Mateo's proprietarv' copyrighted software system, called the Mateo Distributor Business System ("MDBS Software"), is designed to assist you in minimizing paperwork, managing your List of Calls and route, handling inventor\\ receivables and order processing functions, and performing other tasks relating to operating the Distributorship. To ensure performjince and software compatibility, your MDBS computer and software is restricted to your Mateo business related functions. For example, to protect your computer from viruses, worms and spyware of any nature and to insure that the MDBS Software is not compromised, your MDBS computer should not be used to browse the Internet for personal use, i l should not be used for gaming, and other third-party software should not be loaded and executed on the computer. You must sign the Mateo Distributor Business System Software License, Maintenance and Support Agreement (the "Software License Agreement") attached to this Disclosure Document and pa>' Mateo the initial software license fee, vvhich is currently $799. prior to the date you begin operating your Distributorship. Beg inning-in the-see-oiHi-<tuaT4eroj'--2009.-iheFeThere wili be a onetime charge of an additional $100 for licensing Credit Card Processing Software that interfaces with the MDBS Software. The Software License Agreement is for an initial term of one year, with automatic renewals for additional one year terms. Beginning with the second month ofihe Software License Agreement and each year thereafter, you will be required to pay an annual software maintenance fee, vvhich is currently $349-400 for systems meeting Mateo's required specifications. Beginning with the second anniversary ofthe date of the Software License Agreement, if you have a system that does not meet Mateo's required specifications, including manufacturer, model, configuration, operating system, virus protection and non-Mateo-specified use of third-part\- sofiware and Internet siles, the annual charge for systems maintenance and support will include, in addition to the $34^400.fee, an aimual charge of $400 until you comply, to Mateo's satisfaction, with Mateo's required and exact PC configuration. Computer software license expenses are non-refundable, and arc unifonnly imposed on all distributors. Web Paae Set-Up Fee Mateo has established a Website for the entire system and offers you a web page (or subpage) on Mateo's Website. You are required to sign the Mateo Tools Web Page Agreement (Exhibit Q to the Distributorship Agreenient). Under this Agreenient, you vvill have your own subpage on Mateo's website. Also, you must pay Mateo a one-time web page set-up fee of $195 at the execution ofthe Web Page Agreement. Malco FDD'PK ?4i^2.U6_6.6 1 1 w;V-UMiJ3.29. I0 Incentive Programs VetFran Program. Malco participates in the VetFran Program (Veterans Transition Franchise Initiative) that was established by the Intemational Franchise Association in cooperation with the U.S. Department of Veterans Affairs, the Veterans Corporation, and the U.S. Small Business Administration. Mateo will provide to each new distributor vvho is an honorably-discharged U.S. veteran $5,000 of hand tools (valued at list price) at no charge. Mateo will require proof of eligibilit>' from those prospective distributors vvho wish to take advantage of the incentives offered under the VetFran Program. Drug Testing Policv^ For Prospective Franchisees/Distributors. As of April 1, 2009, Mateo has implemented a new drug testing policy for prospective franchisees/distributors. If you are interested in acquiring a Mateofranchise,and you proceed successfully through the application process, before we grant a franchise to you, you must take and pass a dmg test. The test, which is currently intended to test for alcohol and iUegal drugs, vvill be administered by a third party testing company, and the results vvill be provided to you and to Mateo. It vvill be administered at a facilitv' within a reasonable distance from your home, and you must take the test vviihin 5 days of our notice to you. The current cost ofthe test, or lab fee, is less than $50 per test, and vve expect that the cost will be $35 per applicant. Ifyou fail the test, you will not be granted afranchise,and you will not be required to pay the fee. Ifyou pass the test, you will be granted afranchise,and the cost of the test, or lab fee, will be charged to your "open purchase accounf' (or "OPA"), and will be repaid over time based on your collections orrevenuesin your business. In connection with your application for the Mateo franchise, in addition to the appUcation forms, credit check authorization, and oiher documents, you must sign a consent to the alcohol and drug testing. A copy of our current consent form is attached to this Disclosure Document as Appendix I. For New/Existing Franchisees/Distributors (during the term of the franchise). As noted above, as of April I, 2009, Mateo has implemented a new drug testing polic\' for prospective franchisees/distributors. In addition, Mateo Tools has implemented a dmg testing policy for franchisees/distributors who are new to Mateo beginning on or afler April I, 2009, or otherwise sign a Distributorship .Agreement vvith Mateo in 2009 or in the fumre. In addition to the drug testing for prospective franchisees/distributors, existing franchisees/distributors must undergo periodic or random alcohol and dmg testing, at Mateo's direction. You must sign a consent to the dmg testing that will apply during the temi of your Distributorship. The cost of ihe test, or lab fee, will be charged lo your OPA. Also, in the event you fail a dmg or alcohol test, Mateo will have therightto terminate your Distributorship. Mateo FDDTK iH^2.i766.6 12 lAQ^^yi^yM) (6) O T H E R FEES Type of Fee*'* Amount Due Date Remarks Minimum InventorvPurchases Maintain an inventorv of Products atJeasl eauaLtQ_tlie_starter inventor.; 80% ofthe National Distributor Purchase Average;_and maintain a ratio of uurch ase_av.c rai*e_tQ total sales of at least ^5%^^> Weekly See Items 8 and 12 Computer Maintenance and Support Charge*^* $^49400 or $-749800 Annually See Items 5 and 7 Additional Training Fee (for spouse)'^* 5295 On or before training starts See Item 11 Web Page Maintenance Fee'-'* 5195'^* Annually, on the anniversary- date of Web Pagc Agreement See Note 6 Insurance'^* Varies (see Item 7) See Note 7 See Note 7 Notes: (I) You arc not required to pay any monthly or periodic royalty, franchise, license, advertising or other fee (except the annual software maintenance fee described below) during the term of tlie Disttibutorship Agreement. (2) Youjiiust.purchasc.ajiiiiiiinuiii.anio^^ Mateo on_a regular basiSj.aUcast_e.quaLtathe folknvujS-^Cj) maintain_a,niiiijmum inycnioiy; oJlEroducls_equaUQ-QILi.iLexcess_QLtheJ^Le DistnbutQr Starter Inventory^ii) on a weekly basis,.purchase Products from Mateo in aii__amount notJess tlian .8jl%_ofjlicJ:National_Djstributor_Purchase_A.\:cragc.l_based_Qn_>:Q^u^^ vou_have_been_ope_rating_th_e_C)islributors_hip_fo^^^ aycragc:_aiid_(iii)_inaintain_a_niinimuni_of_a_55% ratio_QCa_caiculation_or_your^yearito-date_purchase av:erage_diyided-bvLyour_v:eai'-tQrdate-Sales.a.v;erage. ^As of December 31, 2^.K)820()9, the "TMational Distributor Purchase Average" was $2,909697. The National Distnbutor Purchase Average is determined by dividing the total nuniber of active Mateo distributors for any given weekly period during a calendar year into the year-lo-date total dollar amount of qualifying Mateo Products purchased by sueh distributors during such period. The calculation of the National Distributor Purchase Average does not include the purchases of Mateo Products by new distributors as part of their New Distributor Starter Inventory. In addition, you must al all limes maintain your inventorv' of Producis at a level at least equal to the New Distributor Starter Inventorv. (3) The computer maintenance and support charge is payable on the second month of the temi of the Software License Agreement and annually thereafter upon the annivcrsarv date of the Software License Agreement. The current annual charge is $34940_0, and this amount is subject to change by Mateo I'DD'PK i4*iMi237G6.6 i3-4t^A4i3/2y.'l(! Mateo from time to time. Mateo has set specific hardware requirements in order to ensure proper fimctioning of the MDBS Software. The hardware specifications for the computer system are described in paragraph 4 ofthe Software License Agreemeni. (4) In the second year of the Software License Agreement, the annual maintenance and support charge may include an additional $400 charge if your system does not satisfy^ our required and exact PC manufacturer, model, configuration operating system, vims protection and non-Mateo-specified use of third-party software and Intemet sites. Software maintenance and support does not include MDBS Software support services assisting in the removal of vimses, worms or spware ofany nature. This serv^ice mav^ be available from Mateo at $50/hour. (See Item 5 above and Paragraphs 2 and 6 of the Software License Agreement.) (5) Ifyou or your initial operator elects to bnng your or his/herrespectivespouse to the New Distributor Training Program, Mateo will charge you aflatfee in the amount of $295, for food, lodging, and local transportation. Mateo encourages you to bring your spouse to the Nevv Distributorship Training Program. (6) In late 2000, Mateo created a new Website, and offered all Distributors the oppormnit\' to have his/her own web page on the Mateo Website. The Distributor must sign Mateo's "Malco Tools Web Page Agreenient" (currently attached as Exhibit Q to the Distributorship Agreement). The Web Page Agreenient requires a one-time $195 set-up fee (see Item 5 above), and an annual maintenance fee of $195 per year. The Distributor must comply vvith Mateo's web page policies which can be modified at Mateo's discretion. (7) If you do not obtain and maintain the required proper insurance coverage required under the Distributorship Agreenient, Malco may purchase the insurance on your behalf and vvill charge your Open Purchase Account for the premiums paid. (See Distributorship .Agreement, Article 5.3.) Each fee is imposed by and payable to Mateo, and are unifomily imposed on all distributors (unless otherwise noted). All fees are nonrefundable. Hovvever, the Product inventorv' that you are required to purchase on a monthly basis is resalable. Mateo does not have advertising cooperatives. Malco FDD'PK ?]y;\'<23?.6C'.'> 14 yj_Ujai^?:2U/K) (7) ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT This table provides an estimate of your initial investment for your Mateo® Distributorship. Type of E.xpenditure Amount: Estimated Range Of Cost (Low-High) Metliod of Pavment When Due To Whom Payment Is To Be Made Lump Sum Prior to Start Mateo or Predecessor Distributor Mateo and/or Predecessor Distributor Initial Im'cntorv- $50,000 - 60,000 Acquisition and Establishment of Time Payment Reserve Accounts^' $18,000-23,000 Lump Sum Prior to Start Tmck - tliree months lease pavments^' $3.400--7f>II,000 Monthlv Installments Monthly/Upon Deliverv Dealer or leasing company Computer Hardware three months pavments-' $150-2,650 Montlilv Installmeiits Monthly/Upon Deliverv Suppher Computer Software and Intemel Service^ - three months pavments $1,641 -2,391 Monthlv Inslallme'nts Prior to Start Mateo and Intemet and Credit Card Service Providers Insurance - three months premiums-' $915-2.500 Lump Sum Prior to Start Suppher Travel, Lodging and Meal Expenses- $170-2,515 Lump Sum Prior to Start Airlines, Hotels & Restaurants Professional Services- $150-2,000 Lump Sum As Arranged Attorneys. Accountants and other professionals Fixtures, Supplies, Licenses^ $500-3,000 Lump Sum Prior to Start Supphers $5,000- 13,500 Lump Sum Prior to Start Suppliers, as incurred Additional Fimds - lliree months— TOTAL 579,926 $+X^^.L88,556 Notes: Payments arc not refundable unless otherwise noted. (1) Your initial inventorv' will cost between $50,000 and $60,000. The current Distributor Starter Invenlorv^ is generally $54,000-ahhottgh we-ma\-i«ciease-lho-mimmum-suggesied-Stafie^ S?yrt(W4ater-in^M^(-See-liem-5->. You must maintain or_exceed.this amount of invenlory during the temi of your Distributorship. This amount may increase periodically, due to various factors, such as Malco F D D / P K ?44WJ(2.1766.6 15 the cost of goods, the product mix, and/or the introduction of new tools (see Item 10). If you qualify, Malco will finance up to $72,000 (with no down payment)^of the estimate for initial inventory^ ($54,000) and Time Pavment Reserv^e ($18,000). You_must_maintainj3rcxcced_thjsjn am Qunt_durinft_the_terni_Qf \:our„E)istributorsh i p. _Matco' s_interest rate,_which. rangesJro m_Prime_ Rate plu s.5Jjifl_up_to_Pr_im c,Rale_pl u s_J%,-wi 1 Lbe3ased_Qn_your_i;redi t_scorx_at Jhe.ti ine_Qf_su bniittino ,>:our Application. Assam ing a principal amount of $72,000 at an annual percentage rate of 8.25%^ (Prinie jLate,phis 5%), weekly pavTuents of $203.76 would be made over a 120-month term fsee-Note 2-and Item 10). in the event .Mateo increases the Now Distributor Starter-Inventor^' to $59,000 and if > ou qualify, Malco-wiU rmance--Hp-to-57-7:<H)0 (with-no down payniont}^f-lhe estimated-initial in yen [pry ( 559.000) -and- "1-i me-Pa>' men I Re s oi'vo Dope&i t-($ \ j^-W K1) ai With an annual percentage rate of «i0.25% wrih(Primc_Rate_plus^%), weekly payments of $24^T»l-22J..8^\vould_bc_made over a 120-month term._CSec Note 2 and Item 10.) In certain situations, Mateo may also finance a portion of your initial purchase of inventorv^ and Time Payment Reserve in excess of the estimated, or generally expected, levels of inventorv' and/or Time Paynient Reserve. However, your additional purchases of initial inventorv^ and Time Payment Reserve may exceed the amount Mateo vvill finance toward your initial investment. (2) In certain situations, .Mateo may finance all or a portion ofthe Time Payment Reserve amount. (3) The lower range of the estimated cost is an amount equal to three monthly lease payments of 5800 and down payment of $1,000 on a used tmck. The higher range ofthe estimated cost is an amount equal to the full cash purchase price of a new tmck. (This does not include applicable federal and state excise, sales, or other taxes and licenses, vvhich vvill varv- from stale lo state.) We estimate lhat the average initial costs for the required tmck will reflect a lease of a new tmck, with a down payment of $3,000 and three monthly payments of 51,297 each ($3,891). The cost estimates are included for distributorships in the continental United States. We expect that the costs vvill be higher for distributorships in Alaska, Hawaii, and Puerto Rico due to transportation expenses and other costs that might be associated with transporting specially equipped vehicles to these tvpes of distant locations. The Tmck must be equipped and used solely for operating the Distributorship, and must meet Mateo's specifications and requirements to display your Product inventorv' and to provide on-site sales and service to your customers•_Approval must be,given in writing^y Mateo if you_\vish to chan^e_tmcks duringjhe lifejofjhe_Agreem_eii_t, (4) You are required to purchase or lease a new (not previously ovvned or refurbished) Dell Latitude, model E6500, personal computer (a "laptop"). Mateo vvill provide you with its specifications for hardware (such as the operating system, hard drive size, memor\', maintenance/warranty, printers, etc.) Matco-specified barcode reading and label printing equipment, and Mateo specified credit card swipe device. You will be responsible for acquiring and maintaining access to the Intemet through a high-speed Intemet Service Provider in order to communicate with Mateo. Cable or DSL connections are preferred. In addition, you will be required to purchase a cellular communications card and sen-ice in order to connect to the Intemet while on your route. The hardware specificalions for the computer system will be revised from time lo time. Malco establishes specific hardware standards solely for llie purpose of optimum MDBS software perfomiance. The current list is specified in paragraph 4 of the Software License Agreenient. The lower range of the estimated cost is an amount equal to three monthly payments for a computer if you qualify for a loan from the supplier or financing source. The higher range of the estimated cost reflects the typical full cash purchase price of a complete system. (5) You must sign the Software License Agreenient and pay the specified initial software license fee for the MDBS Software which is currently $799 and the specified annual fee of $,3494M for the Systems Maintenance and Support upon the second month ofthe Software License Agreement (sec Items 5 and 8). Additionally, as noted in Item 8 below, Mateo requires that you subscribe to an Internet service Malco FDD'PK •51^0 823766.6 16 »^Q^imX-2'?.'U) provider and/or cellular service provider. Currently, the cost for such service, depending upon the provider and the level of service, ranges from $60/month to $llO/monlh, and may vary greatly in different areas. The chart includes an estimate for 3 monihs of service, which includes cellular service. Additionally, the estimated range of costs as noted includes the one-time web page set-up fee of $195 (see Item 5). Hovvever, not included in this chart, is the annual maintenance fee of $195 as specified by the Web Page Agreement for your web page on the Mateo Website (see Item 6). (6) You must purchase comprehensive general liability insurance and vehicle liabilitv' insurance coverages with mininium limits of each policy of at least 52,000,000. You must also purchase '"replacement cost" coverage for your tmck, computer system, inventory and olher items used in operating the Distributorship. All insurance policies maintained by you must (a) designate Malco as an additional named insured: (b) provide that Mateo receive a copy of all notices of cancellation, nonrenewal, or coverage change al least 30 days prior to the effective date: and (c) require the insurer to provide and pay for legal counsel to defend any claims or actions broughi against you or Malco. Insurance costs are highly dependent on the geographical location of your business, the dollar amount of your inventorv', the tv'pe of tmck you own and other factors. (7) Travel expenses include the estimated cost of travel to and from the location of the initial training program and your home, and the cost of travel to the dealership to take deliver>' of your tool tmck and to drive it home. The acmal cost of travel will depend on your home location, your mode of travel and whether your spouse accompanies you. Travel to and from the airport for scheduled arrivals and departures, and daily travel to and from Mateo's headquarters, is provided to you at no charge. (Unscheduled arrivals from the airport to the lodging facilit\- vvill be at your own expense.) Mateo has negotiated lodging and meal accommodations for distributors for attendance at the initial training program. The cost of the room and meals will be billed directly to your Open Purehase Account. Lodging is located near Mateo's headquarters, Cleveland Hopkins Intemational Airport, and/or Akron-Canton Regional Airport. Lunches will be catered during actual training sessions at a cost not to exceed $11 per day, vvhich will be billed to your Open Purehase Account at the conclusion of the initial training program. However, you will be solely responsible for weekend lunches and dinners. (The figure in the chart for the high end ofthe range includes the $295 fee for your spouse.) Other expenses that you may incur, vvhich arc not included in the estimated cost, may include telecommunication charges, entertainment, alcoholic beverages, or rental car expense. (8) Professional services may include those provided directly to you for accounting, legal, and other consulting sen ices. The employment of these sen ices is at your discretion and fees will varv' based on tv pe of sen ice, amount of sen ice, and who provides the sen-ice. You arc encouraged to obtain the guidance and assistance of a lawyer and/or accountant prior to signing the Distnbutorship Agreement. You also may require the assistance of those professionals during the early phases of operating your Distributorship. (9) The costs for initial fixmres, supplies, and licenses will van.-.by the specific requirements of each Distributor and the requirements of the local laws in which business will be conducted. Supplies include items such as work uniforms, business forms, stationery, business cards, catalogs, promotional literature and sales materials. Licenses t\pically include general business licenses required by cities and localities in whieh you will do business. (10) Your requirement for additional funds will van.'. You will require an amount of initial capital at the time of start-up and will need working funds throughout the operation of your business. During training and before you begin operating your Distributorship you vvill not be earning income from the Distributorship. In addition, during the initial start-up period of the Distributorship, cashflow may be insufficient lo allow you to draw a salarv' or cover your personal living expenses. Tlie estimated additional funds vvill help finance business expenses (i.e., tmck operating expenses, freight, loan payments, cell phone, and bad debt on receivables) during start-up and during periods in which Maico FDD/PK 54mS23766.6 17 ii^i^ii^y2'X'\() collections from customers are not adequate. This amount represents Mateo's estimate of the costs jissociated vvith the first three months of operating your Distributorship and is based on Mateo's working knowledge of the operating experiences of its existing Distributors. Also included in this figure is the test or lab fee for the prospective distributor drug test, discussed in Item 5 above and the charge forfilingfinancingdocumenis, if any, as described in Item 10 below. This estimate in this Item 7 is not an assurance that your Distributorship will be profitable. The estimated additional funds do not include any salary- or draw for you to pay personal living expenses. Since the cost of personal living expenses varies greatly among Distributors, Mateo does not include those expenses in its estimates for your initial investment. As part of yourfinancialplanning, you must take your personal living expenses into account during periods of insufficient cashflow. (8) (»)-RESTRlCTIONS ON SOURCES OF PRODUCTS AND SERVICES You are required lo sell only Products approved in writing by Mateo. You must purchase the Products only from suppliers who have been approved in writing by Mateo. Currently, Mateo is the only approved supplier of Products. All Products purchased from Mateo are resalable items. 3. The Products are sold to you al a discount from recommended list price. The weighted average discount for all Products prior to additional promotion and olher discounts is currently approximately 35%. Tlie weighted average discount reflects the total of all iicms sold by Mateo as well as the varv'ing discountsfromlist price for different items. b. Volume P^'nient to Terms ("VPTT") Bonus. If a Distributor pays Malco for products within 14 days ofthe Malco invoice, the Distributor vvillreceivearebateon tliese purchases. The Volume Payment to Tetmlenus Bonus is that rebate. The rebate is based on the Distributor's 6-weck purehase average, and the rebate ranges from 3% lo 5.25% ofthe total invoice. The average VPTT eamed in 2i}(i^2009 was 2T^36.L93% of overall sales. The purchase of initial inventorv- from Mateo constimics a range of approximately 26% to 63% of the cost of the establishing the Distributorship. Purchases ofthe Products throughout the term ofthe Distributorship will constitute approximately 65% of the cost of operating the Distributorship. Mateo will derive income from the sale of the Products by charging you wholesale prices that exceed Mateo's costs of supplying the Products. In the fiscal year ended December 31, ^OOS2009, Mateo's total revenue from the sale of Products to its franchise dishibutors was 5231 •92J 5_,053 million, or 84-73^82•5_% of Mateo's total revenue of S285 .1260,72_7 million, as reflected in Mateo's auditedfinancialstatements. You arerequiredto license, install, and utilize the MDBS Software (as described in Iteins 5 and 6 of this Disclosure Documeni) in your business. The software license fee amount is income to Malco, and constitutes less than 1% ofthe cost of establishing the Distributorship, and less than 1% ofthe ongoing cost of operating the Distributorship. In the fiseal year ended December 31, ^^^2009, Mateo's total revenue from software license fees and software maintenance charges received from its distributors was $632T^^^698.946, or approximately 4)2%4two-0.3J/'o_(thrccrlenths of one percent) of .Mateo's total revenue. As discussed in Item 5, when you sign the Distributorship Agreement, you must also sign the Mateo Web Page Agreement, vvhich pemiits you to establish a subpage on Mateo's vvebsiie. You must pay Mateo a one-time web page set-up fee of $195. Ifyou continue to utilize a subpage. and neither vve nor you cancel the Web Page Agreement; you must pay Mateo an annual $195 maintenance fee. In fiscal year 20(t82009. Mateo received $22-2-9*t():223,473 in web page fees (initial and maintenance fees) from franchisees. This amount was less than one-tenth of one percent (0.1%) of Mateo's lotal revenue. Malco also requires during the term of your franchise that you subscribe, at your expense, to a reliable highspeed Intemet sen'ice provider (cable, DSL or high-speed cellular) or other electronic coniniunications Maico FDD'PK -54*1^^23766,6 18 y;iliii-aj:i,-2i^ilt) provider or sen'ice and maintain an active e-mail account. In addition, you are required to subscribe to a cellular Intemet sendee provider in order to connect to the Intemet vvhile on your route. Both the sen-ice and provider may be designated by Mateo. Mateo makes or plans to make infomiation available to you on the Intemet at Mateo's expense. Also, Malco ma>' require that any and all communications beUveen you and Mateo be made through the Intemel or sueh other electronic medium as Mateo may designate. You will be required to access the Intemet or other electronic information on a regular basis to obtain full benefit ofthe System. Many documents, such as weekly statements, will be delivered via e-mail. You must immediately notify Mateo's customer sen'ice department of any change to your e-mail address. Mateo is not liable for any damage to you including lost profits, delayed orders or the like which are the result of any outage or delay related to electronic transmission of information, whether by the Inlemet or othenvise. You must purchase or lease certain equipment and supplies (including, for example, business cards and stationer\') that meet Mateo's specifications. You must purchase or lease a vehicle and computer hardware vvhich meet Mateo's specifications and you must cany minimum insurance coverages on these and other items (as described in Item 7). Mateo's specifications for the vehicle, computer hardware and other equipmenl and supplies are based on Mateo's prior experience, requirements relating to the operation of the Distributorship, the supplier's abilitv' to deliver, sen'ice, and support the items, and quality and uniformity considerations. Catalogs, promotional literature, and other sales materials used in the operaiion of your Distributorship must comply with Mateo's standards, and may either be purchased from Malco or from other sources who meet Mateo's standards. Upon request, you can receive from Mateo a vvTitten listing of its specifications and standards for equipment and supplies after you sign the Distributorship Agreement, lo the extent the specifications and standards have been developed. Vlatco vvill update the specifications and standards from time to time in writing as may be required to respond to requirements for operating the Distributorships. While Mateo does not have a formal process for evaluating suppliers, and does not generally charge fees to supphers seeking to obtain approval, Malco approves suppliers based upon their ability to satisfy, in Mateo's reasonable judgment, the specificalions and standards for equipment and supplies. In some eases, approved suppliers may pay Mateo a periodic fee or a fee based on sales to distributors. In addition, occasionally one or more approved suppliers may make payments to Mateo (not based on sales to distributors) vvhich Mateo has used for promotional and brand development purposes. In 2008^2009, Mateo received fees from suppliers in the amount of $254:6053_03,247. Also, the figures in this item 8 do not include any amounts treated as a passthrough, rebate, or other payment that was distributed back to the distributors. Mateo does not generally negotiate purehase agreements with suppliers, but it resen'es the right to do so. Mateo has not established purchasing or distribution cooperatives. Malco also offers gift cards and electronic stored value cards ("gift cards") vvith which potential customers nia\' purchase Products. Our current policy is lhat distributors are not required to accept Mateo gift cards, but you are encouraged lo do so. Ifyou accept Mateo gift cards as payment for Products, Mateo will redeem (dial is. reimburse you for) those gift card purchases at 90yo of the price at which you sold the Products. Except for the Products, the MDBS Software, and the web pages, for which Mateo is the approved supplier, and except for the vehicle, where suppliers are designated, and for vvhich there are currently only two recommended suppliers, you are not required to purchase or lease any goods, sen'ices, supplies, fixtures, equipment, inventory, or real estate relating to the establishment or operation of the Distributorship from Mateo or from suppliers designated by Mateo. Mateo does not provide material benefits lo a Dislribulor (for example, renewal or extension ofthe temi, or granting additional franchises) based on a Distributor's purehase of particular products or senices or the use of particular suppliers, except that, as noted in Item 6 above, each Distributor must purehase at least 80% of the National Distributor Purehase Average as a condition of maintaining the Distributorship. None of our officers owns an interest in any companies lhat are vendors or suppliers to the Mateo Distributors. Malco FDD'PK >]>')\'i2y7y0.6 19 iO :i:'3/29'10 (9) FRANCHISEE'S OBLIGATIONS This table lists your principal obligations under the Distributorship Agreement. It will help you find more detailed information about your obligations in these agreements and in other Items of this Disclosure Document. Obligation Section in Agreement Disclosure Document Item (a) Site selection and acquisition/lease Noi applicable Not applicable (b) Pre-opening pure liases/leases Articles 3.3, 3.5, 3.6 and 3.7 of Distributorship Agreement items 5, 7 and 8 (c) Site development and other preopening requirements Not Applicable Not applicable (d) Initial and ongoing training Article 4 of Distributorship Agreement Item 11 (e) Opening .Article 1 of Distributorsliip Agreement Item 11 (0 Fees Articles 3 and 6 ofthe Distributorship Agreement Items 5 and 6 (g) Compliance with standards and policies/Operating Manual Article 3.10 of Distributorship Agreement Items 8, 11 and 16 (h) Trademarks and proprietaiy information Articles 7 and 9 of Distributorship Agreement Items 13 and 14 (i) Restrictions on products/sen'ices offered Article 3.2 of Distributorship Agreement Items 1 and 16 (j) Warranty and custoiner serv ice requirements Articles 3.4 and 8 of Distributorship Agreement Item 11 (k) Terrilori£tl development and sales quotas Article 3.2 of Distributorsliip Agreement Item 12 (1) Ongoing product/service purchases Articles 3.3 and 6 of Distributorship Agreenient hems 6 and 8 (m) Maintenance, appearance and remodciing requirements Article 3.6 of Distributorsliip Agreement Item 11 (n) Insurance Article 5.3 of Distributorsliip Agreement Items 7 and 8 (o) Advenising Article 3.1 of Distributorship .Agreement Item 11 (p) Indemnification Article 5.4 of Distributorsliip Agreement Not applicable Maico FDD'PK iWW^2376(i.6 20 Obligation (q) Owner's participation/management/staffing Section in Agreement Disclosure Document Item Article 3.12 of Distributorship Agreement Items 11 and 15 (r) Records/reports Article 5.2 of Distributorship Agreement Item 5 (s) Inspections/audits Article 3.13 of Distributorship Agreement Item 11 (t) Transfer Article lOof Distribulorship Agreement Item 17 (u) Renewal Article 2.2 of Distributorship Agreement Item 17 (v) Post-termination obligations Article 11.5 of Distributorship Agreement Item 17 (w) Non-competition covenants Article 11.8 of Distributorship Agreement Item 17 (x) Dispute resolution Article 12 of Distributorsliip Agreement Item 17 Maico F D D P K i.wy4i23766.6 21 t^ii4i(iu3/2y/.1.0 (10) FINANCING Malco offers a number of financing programs to its distributors, as summarized in the following table. Item Financed Amount Financed Do'.vn Pavment Term (Months) APR% Weekly Pavmeni Prepayment Penalw Security Required Liability Upon Default Loss of Legal Rights on Default Initial Inventoi y and Financii g of Time Payment Reserve Account Deposit (1) 572,000 t*f CuiTcntly Up to 120 Up to 18% (annual rate); currently 8.25% to .1^.25^%""" where applicable ii) $203.76, 12 $22].M. based upon $72,000 with no down pavment None Personal P.U a rant v. security interest in inventory' and receivables Principal balance and accrued interest Loss ofall defenses None; 3% to 5.25% discount available to qualifying distributors t^or earlv payment. Personal guaranty; security^ interest in inventoiy and receivables Full amount Default under Distributor Agreement SO to the initial purchase, depending on the required initial inventorv' amount $11,000, but may be required Iiased upon applicant criteria dowTi l->aynieni Open Account Product Purchases Amount Purchased Noiic i3) Payment due upon receipt 22.5% annual interest (or the highest rate permitted by law) on balance of Open Purchase Account as ofthe date of temiination or expiration N/A Notes: (I) Depending upon your available collateral, credit history^ and other credil factors, Mateo may finance $72,000 -(with no down paynient) of the eslimated initial inventory ($54,000) and Time Payment Reserve Deposit ($18,000). As-djsGussee!--tiv-ltetn--5;-<hjring--2()iW; Mat Di5tributOF-Sl arlef ^ l n venteiy-f o-^^yyt-Wf —I n-that-eveiUT-l^latetuHaj-fm aHee-477^MMi-(-wi t Ime-dowR payment)-of4h8-e$l4mTitBd initial-Hi-veHtoiy-(-!>T5^,(K,K)) and Time Payment Resene Deposit ($1X.<>()0) e^^tei^eventr-the-Tlie^ 1 oan vvill be evidenced by an Installment Promissory Note (the "Note"): 3 copy of vvhich is attached as Exhibit C (Attachment 1) to the Distributorship Agreement. Malco may also finance, at its sole discretion, a portion of your initial purchase of inventory and Time Payment Reserve Deposit in excess of the estimated, or generally expected, levels of inventory and/or Time Paynient Resen e Deposit. (See Note I of Item 7) This additional financed amount vvill be included in the Note for die financed portion of your initial inventor\- and Time Paynient Reserve Deposit discussed above. 1 .\Iatco FDD'PK ^ ^ ^ ^ 2 ^ 1 ^ 22 ;j3A-O-'0s'3-'2';-'10 The Notes provide for weekly payment of principal and interest at an annual interest rate, whieh is subject lo change in accordance vvith the Prime Rate as reported in The Wall Street Joumal. Mateo's interest rate will be bascd_on,yourcy_dit3eQrc_atJhe,lini The interest rate_-\vilLbe,.in_a_range_of.5.0% tQ„7.%_plus the Prime Rate that is in effect when you are awarded a franchise. The rate of interest fQr_thc_Note will be fixed for the term of the Note. As of Januarv^ 2^r 24:K>98, 2010, the Prime Rate was 3.25%. The current percentage rate of interest that will be charged for initial inventory fmancing will be 8.25%.-% (Primc^ate_p.his 5%) upjo 10,25% (Pome^ate_plus 7%). The term ofthe Note will be determined by Malco and will be up to 120 nionths. You will be in default under the Note if: (a) any installment of principal or inierest on the Note is not paid when due or upon demand as provided for in the Note; (b) you fail to pay your debts as they mamre; (c) you default under the Distributorship Agreement or any other agreement, note, lease, or contract betvveen you and Malco, or if any such agreement is canceled; (d) you cease operating the Distributorship or the Distributorship is dissolved, terminated, insolvent, or ceases operations; or (e) you fail to have the Note fully collateralized with inventory (as reflected in the Security Agreenient, described below) at all times. If you default under the Note, the principal balance and all accmed interest will become due and payable without demand. You and any endorsers or guarantors of the Note must waive demand, protest, presentment, notice of protest and non-payment or dishonor, and must also waive any and all defenses on the grounds of any extensions or partial payments which may be granted or accepted by Malco. The Note must be guaranteed by you or another person acceptable to Mateo. You must also sign a Security Agreement (Exhibit D to the Distributorship Agreement) granting Malco a securiiy interest in your inventory of Products and Accounts Receivable. At Mateo's request, you must sign all necessarxfinancing statements and other documents and pay the costs of filing such statements or other documents. Mateo's experience has been that these costs range from S20 to $200 per filing depending on ihe state. Mateo financing vvill not be offered to all prospective distributors, but only to those that meel Mateo's qualifications. Also, even in situations in which Malco offers financing, Malco is not required to offer financing for the maximum amount of up to $72,000-ef-S-7-7-Of-H), but may offerfinancingfor a lesser amount. Factors such as your qualifications and credit-worthiness vvill affect the level of financing that might be offered. (2) In some states, the maximum interest rate may be less than the amount stated in the chart due to stale lending laws. (3) Your purchases of the Products are charged to an Open Purchase Account on vvhich paynient is due upon your receipt of an invoice from Malco. Other charges to the Open Purchase Account, in addition to Product purchases and related charges, may include MDBS charges, web maintenance fees. Tool Expo charges, and training costs. If you do not make payment within 21 days of the invoice, the account is deemed delinquent by Malco. Mateo vvill assess a $10 per week late fee for each week that you fail lo pay the balance owed. Ifyou pay vvithin 14 days of die invoice, you may be eligible for purchase discounts, which may var>' from 3% lo 5.25% depending upon the volume of purchases. As noted in die chart, Mateo will have a security interest in the inventory and receivables and you must sign the Security Agreement noted above (even i f y o u did not sign a Note described in Note (1) above). (4) Upon tennination or expiration of this Agreement, you will pay Mateo interest on the balance owed under your Open Purchase Account as of the dale of temiination or expiration, at a rate of 22.5% annually, or the maximum rate pennitted by lavv, whichever is lower. In addition, Mateo may assess .Maico FDD-PK ^^^^^,^2.1766.6 23 (a-^utipv29.'iO you a late fee of $25 per week for each week that you fail lo pay the balance owed on the Open Purchase Account following termination. Installment Contracts (Purchase Security Agreements) In addition to the financing programs described above, Mateo offers three customer installment fmancing programs to qualified distributors. The purpose of these programs is to allow you to offer installment financing to your customers in amounts that are beyond your capacity- to carry as Time Payment accounts. If you qualify to participate in the customer installment financing program, you will sell Products to your qualified^customers pursuant to an installment sale contract, and Malco will finance the purchase and accept assignment of the installment contracts under the terms and conditions of the Mateo Purehase-Securitv' Agreements/Credit Assignment Agreements, copies of vvhich are attached as exhibits to this Disclosure Docum en t.^^.^^Cy-Slomers_3yho_arejnot_U.S.._cit^^ qu3li£^Qr_Purch asc_SQ£urilvA.t;reeme_n ts. Mateo offers three forms of Purchase Security Agreements/Credit Assignment Agreemenis: (a) a non-recourse credit assignment agreement, (b) arecoursecredit assignment agreement with an addendum which provides that you need not obtain Mateo's prior approval of your credit history and the creditworthiness ofthe customer provided that the customer does not currently have a charged off account vvith Mateo (referred to as the "PSA Gold Card"), and (c) a 50% recourse credit assignment agreement (referred to as the "New Tech Program"). Under these forms of credit assignment agreements, upon acceptance of assignment, you vvill receive a credil corresponding to the value of the net amount financed, less a reserve charge, lo your open purchase account. This credit vvill be posted vvithin fort\'-eight hours of the acceptance of a contract assignment by Mateo. Under the current form of non-recourse credit assignment agreement, the price paid by Mateo lo you for acceptance of the assigned installment contracts will not be less than 85% of the net cash price (although Mateo's current practice is to assign installment contracts at 91% ofthe net cash price). Hovvever, Malco may not accept assignment ofany installment contract ifthe sale price exceeds the product's list price. Malco will release you from all liability for the installment contracts, subject to certain exceptions enumerated in the agreement, and provided that you comply vvith the terms and conditions of the agreement. Under the Purchase Securilv' Agreement/Credit Assignmeni Agreements, you must collect mone>" owed by distributors and remit the money to us. If you do not remit the full amount collected in a timely fashion, vve may charge you an administrative fee, currently set at $25 per occurrence, per contract, for delinquent or insufficient payments, or inaccurate reporting, as eonsideraiion for, among other things, Mateo's time and efforts in collecting monies, additional correspondence with you, credit bureaus and others, and administrative time and costs to cortcet data. Under the current PSA Gold Card agreement the price paid by Malco to you for acceptance of the assigned installment contracts will not be less than 95% of the nel cash price of the installment contracts (although Mateo's current practice is to assign installment contracts at 97% of the net cash price). However, Mateo may not accept assignment of any instailment contract if the sale price exceeds the product's list price. The 3% deduction from the full net cost price of the assigned installment contracts is a charge payable to Mateo as assignee ofthe assigned inslallnient conlracts. Under the current PSA Nevv Tech .Agreement the price paid by Mateo is 95% of the net cash price of the installment contract with a refundable reserve account. Mateo has from time to time considered developing additional customer installment financing progranis that may be recourse or non-recourse credit assignments, and/or may be available only to distributors vvho (a) qualifi' lo participate; (b) have a minimum of six monihs or more experience as a Malco distributor; and (c) are in compliance with their Distributorship Agreement. Currently, however, the only Purchase Security Malco FDD I'K U^^231«y> 24 y^l)^^29yii) Agreements available are those described above. Mateo expects that if a new installment financing program is developed and offered in the fumre, participation in any such program will be voluntary-. Equipment Leases In addhion to the two Installment Financing Programs listed above, Malco also offers a Lease Program for qualified shop ovvners or other customers of the distributor. The purpose of this program is to offer to qualified customers financing on shop equipment, ff you qualify for participation in the lease financing program, you may sell equipment to your customers by offering a closed end lease to your customer, and Malco will finance the purchase under the Mateo Distributor Lease Agreement, a copy of which is attached as an exhibit to this Disclosure Document. Mateo vvill purehase the lease from you at a price that is not less than 90% ofthe value ofthe leased equipment, but not more than the list price. Mateo will be responsible for the collection ofthe lease payments until paid in full or until repossession is necessary, ff the documents are not correctly and completely executed, Malco may assign the documents to you for the amount owing under the lease at the time ofthe assignment. The current program is a non-recourse program. Upon acceptance of the lease, Malco will post a credit to the distributor's open purehase account less a reserve charge. The reserve will not be less than 90% of the sale amount (although current practice is lo credit 100% of the sale amount). Mateo and/or its affiliates have in the past sold, and may in the future sell, assign, or discount, vvith limited recourse, certain accounts and notes receivable. To the extent the notes, contracts, or other instmments require Mateo to provide services to you, Mateo will remain liable to provide sueh services. Hovvever, the third party to vvhom the note, contract or other instrument is assigned may be immune under the lavv to defenses to payment you might have against Mateo. Except as set forth above, Mateo and its affiliates (a) do not directly or indirectly offer or arrange any financing, (b) do not receive direci or indirect payments for placing financing, and (e) do not guarantee your obligations to third parties. (U) FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING Except as listed below, Mateo is not required to provide you with any assistance. Assistance Prior lo Opening. Prior to beginning business under your Matco'K' Distributorship, Mateo is required to provide you vvith the follovving: (A) Mateo will provide you vviUi a List of Calls and Potential Customer List (see Article 1.2 of the Distributorship Agreement). Mateo designates List of Calls and Potential Customer List by identifying a mininium of 325 potential customers at businesses that generally employ mechanics and other individuals who may be potential customers for the Products. Actual_or_potcntial_custQmers_niay_or_nia\Lnot_be_U.S._citizens and_iiiay_or_niay_nQt_po_ssess_social_sccurityLiiumbers._Matco,is_nol,required_to_assess._aiid_is_nQt,responsiblc fcl^.?§5=t§5Uig,j>XtL^ ^ ^ i " operate as a mobile distributor and will not have a specified place of business. It is generally expected that you vvill remm your truck lo your residence each evening, locale the computer al your residence, and otherwise operate the Distributorship from your residence. Mateo estimates that the length of lime between the date you sign the Distributorship Agreement and the date you begin operaling your Matco'Ei Distributorship will be between 20 and 45 days, depending on how quickly you can complete training and obtain the truck, inventory, equipment and supplies needed to begin operations. Malco FDD PK >i>^i.H2y70y6 25 o:t.\iO/0'i3:2 (B) Malco will provide you with the use of a copy ofthe Manual (see Article 3.10 ofthe Distributorship Agreemeni). Malco reserves the right lo provide the Manual electronically or in an electronic or computerreadable format, for example, via the Malco Distributor Business System, or another meihod, or on a CD. Following is the Table of Conients of the ^90275. page Manual; Total Pages (I) Getting Your Business Started on a Sound Foundation 26 (2) How to Become a Successful MATCO Distributor 4^Ji (3) Getting Started - Day I 28 (4) Providing Your Customers vvith Excellent Service 12 (5) 61 Sales Basics for the Tool Business (6) Customer Service and Special Order Departments 2-922 0) Commercial Financial Ser\ ices 46 (8) Financial Management ^3J (9) Tool Bo.xes 22 -Append-fx- (cy- — — 4-3 Mateo vvill provide you or your operator with at least 60 hours of mandatory initial classroom training (the "New Distributor Training Program") at Mateo's corporaie offices in Stow, Ohio, or at sueh ether location as may be designated by Mateo (see Article 3.8 and Article 4.1 ofthe Distributorship Agreement). You or your operator must successfully complete the Nevv Distributor Training Program before operating your Distributorship. The New Distributorship Training Program will include classroom instruction on basic business procedures, purchasing, selling and marketing techniques, customer relations, basic computer operations and other business and mailceting topics selected by Malco. Malco vvill instruct you using the lecmre method, videotape, computer-based training modules, and interactive video courses. The courses are as follows: TRAINING PROGRAM HOURS OF CLASSROOM TRAINING HOURS OF FIELD (ONTHE-JOB)TRAINING"' Introduction/ Corporate Infonnation/ Building Tour 3 Hours Not applieablc Introduclion to Tool Business 1 Hour Not.applicable SUBJECT Miilco FDD'PK ^]y^\'i2:u6.6.(. 26 LOCATION*^' Mateo's training facility in Stow. Ohio (see notes 1 and 2 beiovv) Mateo's training facilitv' in Stow. Oliio (see notes 1 and 2 below) ij3'.iOV'03'29^10 HOURS OF CLASSROOM TRAINING HOURS OF FIELD (ONTHE-J0B)TRA1NING'' ^ MDBS Software Set-Up & Loading 2 Hours 2 Hours Mateo's training faeihtv' in Stow, Ohio, and on your Tmck (see notes I and 2 beiovv) Open Purchase Account & Financial Management Tools 14 Hours 5 Hours Mateo's training faciht\- in Stow, Ohio, and on your Tmck (see notes I and 2 below) MDBS/Business Applications 25 Hours 38 Hours Mateo's training facilitv' in Stow, Ohio, and on your Tmck (see notes I and 2 beiovv) Consumer Financial Senices 2 Hours 8 Hours Mateo's training faciht\' in Stow, Ohio, and on your Tmck (see notes 1 and 2 below) Mateo Product Knowledge 31 Hours 10 Hours Mateo's training facilitv- in Stow, Ohio, and on your Tmck (see notes 1 and 2 beiovv) Sales Training (Package SeUing and Tote Trav Use) 9 Hours 10 Hours Mateo's trainine facihw in Stow, Ohio, ana on voiir Tmck (see notes \ and 2 beiovv) Customer Service Issues 2 Hours 7 Hours Mateo's training facilitv' in Stow, Ohio, and on your Tmck (see notes 1 and 2 beiovv) SUBJECT LOCATION*^' Notes: Field Training is described in more detail beiovv under the heading "Assistance Provided by Malco during the Operation of the Business." Field Training is conducted under the supen'ision of Tracy Rohrbaugh and may be conducted by a Mateo regional or district business manager and/or one of the regional trainers employed by Malco. Each regional trainer is a professional educator and has been trained by Malco for the purpose of training Mateo's Distributors. Distributor training and development is conducted under the direction of Mike Swanson, National Distributor Development Manager. Mr. Swanson has been in his current posilion since July 2007. Mr. Swanson was a Mateo Regional Manager from Januarv' 2004 until July 2007 and the National Franchise Sales Manager from June 2002 to Januarv' 2004. Prior to thai dale, Mr. Swanson held positions of National Sales Development Manager, Manager of Distributor Communications, District Business Manager and slarted his career vvith Malco in 4-WH]^88 as a Mobile Tool Distributor. Tracy Rohrbaugh manages the New Distributor Training Program and supervises ihe classroom and field training conducted at Malco Tools. Mr. Rohrbaugh has been Mateo's Manager of Training since August 2005. Mr. Rohrbaugh was a Mateo Field Trainer from Januarv' 1995 to September 1995 and the Coordinator of New Distributor Training from September 1995 to August 2005. Prior to joining .Maico FDD'PK 51>:;VS;23?G6.6 27 Mateo, Mr. Rohrbaugh serv^ed in die U.S. Air Force as Training Operations Manager for the 371^' Training Squadron. 3785"' Training Wing. Training will begin after you sign the Distributorship Agreement. Mateo conducts the Nevv Distributor Training Program on a monthly basis and expects that you or your operator vvill commence training within two weeks of executing the Distributorship Agreement. The New Distributor Training Program will be provided to you or your initial operator at no cost, and is generally available vvithin the one month period before you begin operating your Distributorship. In order to ensure the availabilit>' of local lodging while attending the New Distributor Training Program, Mateo has negotiated lodging and meal rales on your behalf The cost of the room and meals vvill be billed directly to your Open Purchase Account. Any other charges incurred at the lodging facilit>' vvill be due and pa\'able directly to the facilit>' at the time of checkout. In addition to lodging and meals, you vvill be required to pay all other expenses associated with attending the training, including travel and the salarv', fringe benefits, payroll taxes, unemployment compensation, workers' compensation insurance for any operator who vvill attend tiie New Distributor Training Program (see Article 4.2 of the Distributorship Agreement). Ifyou or your initial operator elects to bring yoiu" respeclive spouse, Mateo vvill charge a flat fee in the amounl of $295.00 for food, lodging and local transportation. Mateo encourages all distributors to bring their spouses to the Nevv Distributorship Training Program. Mateo vvill provide additional traimng and certification for distributors al such times as it may determine, and you, and your operator, if applicable, must attend this training and complete the eertifleation procedures designated by Mateo. A l its option, Malco may require distributors to pay all or some portion of the cost of providing any such future additional training and/or certification procedures (D) Malco will provide you with the standards and specifications for the truck and uniforms required by Mateo for use in your Malco® Distributorship (see .\rticle 3.6 ofthe Distributorship Agreenient). (E) Malco will provide you vvith the standards and specifications for the computer hardware and software required by Malco for use in your Mateo® Distributorship (see Article 3.7 of the Distributorship Agreement). You must comply vvith Mateo's standards and specifications for the computer hardware, software, and communications, and you must regularly update your computer hardware, software, and communications to comply vvith any new or changed standards and specifications. Currently, you are required to purchase a nevv (unused and not refurbished) Dell Latitude, model E6500 personal computer (a '"laptop") meeting the requirements described in paragraph 4 of the Software License Agreenient (Appendix D, Exhibit 0 of this Disclosure Document). The MDBS Software is designed to assist you in minimizing paperwork and in managing your route and List of Calls, handling inventory, receivables and order processing functions, and perfonning other tasks relating to operating the Distributorship. The MDBS Software performs numerous on-truck functions such as tracking of sales histories and accounts receivable, printing of receipts and PSA quotes, credit applications and contracts, inventorv- tracking, tool repair tracking support, credit management, order placement, tracking of customers' orders. Product pricing, sales and collection records, weekly activity reports, and feedback reports from Mateo. Mateo provides computer sv stems maintenance and support services Monday through Friday during the standard hours of 8:00 a.m. through 4:30 p.m., Eastem time, at Stow, Ohio. Malco vvill from time to time review the MDBS Software for improved functionalitv' and operating efficiency. Malco will make such improvements and enhancements as it deems appropriate and will provide you vvith the updated soltware and documentation necessarv' to make the improvements on your system. You will be required to update your computer hardware and software from time to time in order to maintain compliance with Mateo's then-current standards. There are no contractual limitations on the frequency or cost of your updating obligations. You will be responsible for acquiring and maintaining the computer hardware and manufacturer's operating system software required to execute the MDBS Mateo FDD'PK H ^ ^ l ^ W ' - . d 28 t^iu:)^3i29:il) Software. You will be responsible for handling all equipment hardware/warranty issues directly vvith the equipment manufacturers. E.xcept for the MDBS Software, vou will have sole and complete responsibilitv^ for: (a) your own computer hardware and software as well as the manner in which tiiose systems are maintained, upgraded, and operated in order lo maintain compliance vvith Mateo's standards as the>' may be modified from time to time: (b) obtaining and maintaining access to the Intemet ihrough a subscription with an Intemet service provider or a then-current technologically capable equivalent in accordance with Mateo's standards; (e) the manner in vvhich your systems interact with Mateo's systems and those of other third parties; and (d) any and all consequences that may arise if your systems are not properly maintained, upgraded, and operated. Mateo vvill have access to certain sales, inventoiy, and accounts receivable collection information from a distributor's MDBS system. Malco uses this data to prepare and provide reports to a distributor vvith key business statistics regarding the distributor's business. A l l data provided by you, uploaded to Mateo's system from your system, and/or downloaded from your system to the Mateo system, is and will be ovvned exclusively by Mateo, and Mateo will have the right to use such data in any manner that Mateo deems appropriate withoui compensation to you. As described in Item 7, you may lease or purchase the hardware. The costs are estimated to be approximately $50 per monlh under a lease, ifyou qualify for vendor financing, or $2,650 to purchase the equipment. As described in Item 6, the annual computer maintenance and support charges are $-349400, or $749800 if your computer does not satisfy the required configuration. (F) Mateo will provide you vvidi the standards and specifications for the New Distributor Starter Inventor>' required by Mateo for your Malco® Distributorship (see Article 3.3 of the Distributorship Agreement). Assistance Provided bv Mateo during ihe Operation ofthe Business. (A) Mateo provides you vvith a designated trainer for a mininium of 80 hours of initial Field Training (see Article 4.2 of the Distributorship Agreemeni). The designated trainer may be a regional trainer and/or a regional or district business manager The designated trainer will ride with you or your initial operator on sales calls. Topics covered during Field Training include purchasing, selling and marketing techniques, customer relations, computer operations, product knowledge, product demonstrations, order placement, credit and collections management, record keeping, and other topics relating to operating your Malco® Distributorship. Further information concerning Field Training is given in the table vvhich appears under 11(C) above. (B) Mateo provides you with additional training, product updates and business seminars (see Article 4.3 of die Distributorship Agreenient). Your attendance at additional training sessions and business seminars is generally optional, however, you must attend at least 80% of the Mateo-scheduled district sales meetings for your district in any l2-inonth period. (C) Mateo will, from lime to time, advertise the Products in selected national and regional trade publications targeted toward the types of cusiomers served by you and other Malco® distributorships. Any such advertising is done al Mateo's expense and under Mateo's control. (D) Currently, Mateo makes available to you certain catalogs, promotional literature, and other sales materials at no cost. Other materials are available to you al a nominal charge to purehase at your option. (E) You are not required to conduct any direct mail or media advertising programs for your Distributorship. Hovvever, ifyou detennine that direct mail advertising would improve your business, Malco will, upon your request and at your expense, conduct direct mail marketing progranis vvhich vvill include mailings to potential customers on your Potential Custoiner Lisl. The content, I Mateo FDD'PK •M»:">:2.)766.(> 29 U3'30-tW?/29/10 promotional offerings, number, timing, and frequency of the mailings will be detemiined by the mutual agreement between you and Mateo. You must provide Mateo vvith an updated and verified list of potential customers on your Potential Customer List, including each potential customer's name, work location, and mailing address. (F) Any Website (as defined below) vvill be deemed "advertising" under the Distribulorship Agreement, and will be subject to (among other things) Mateo's approval. (As used in the Distributorship Agreement, the term "Website" means an interactive electronic document, contained in a network of computers linked by communications software, that you operate or auihorize others to operate and that refers to the Distributorship, the Mari:s, Malco, and/or the Sysiem. The term Websiie includes, among oliier things, Intemet and World Wide Web home pages.) In conneciion with any Website: (1) Before establishing the Website, you must submit lo Mateo a sample of the Website fomiat and information in the form and manner Malco may reasonably require. (2) You may not establish or use the Website without Mateo's prior written approval. (3) In addition to any other applicable requirements, you must comply with Mateo's standards and specifications for Websites as prescribed by Mateo from time to time in the Manual or otherwise in writing. If required by Mateo, you must establish your Website as part of Mateo's Website and/or establish electronic links to Mateo's Websiie. (4) Ifyou propose any material revision to the Websiie or any ofthe information contained in the Website, you must submit each sueh revision to Mateo for Mateo's prior written approval as provided above. (G) Mateo provides end-user financing progranis to your qualified customers (see Item 10 under ' Installment Contracts"). (H) Malco provides support of your sales and servicing activities through its warrantv- and non-warrant\' service programs. (I) Mateo provides weekly and emergency shipments of Products lo you, in accordance vvith the temis of the Distributorship Agreement (see Article 6 ofthe Distribulorship Agreemeni). (J) Malco provides periodic meetings with Malco personnel for you and other distributors for the purpose of additional training. Product updates, seminars, motivational programs, and group idea exchanges (see Article 4.3 ofthe Distributorship Agreenient). (K) Mateo provides you with computer software and support serv ices in order to facilitate your operation of the Distribulorship and the perfomiance of your duties in cormection vvith the Distributorship (see Article 3.7 ofthe Distributorship Agreement). (L) Malco will make its then-current tool return policy available to you. The cunent policy provides that during the temi ofthe Distributorship Agreemeni or after its expiration or temiination, you may retum for credit to your open purchase account any eligible Mateo Producis purchased from Malco and listed in the then current Mateo Tools Price List, excluding special order; high obsolescence electronic; and, used or abused Products. Mateo will credit your open purchase account for the eligible retumed Products iH-an-amoimf-e^al to Ma(eo-s-iheti-eunont priee-fef-cach such Rrodu^t-less a restocking charge, vvhich presently is 15%. A good faith effort vvill be made by Mateo to issue credit vvithin 30 days of acceptance of the remmed Products. The criteria for pfoduetProducts_that_are eligible for retum for credit is stated in Mateo's tool retum policv. Mateo will revise its tool remm policy at such times as it may detemiine, and will infonn you in writing ofany changes when made. Malco l-DD-PK ?4*d^2.>7^0..6 jO u3 30 0^i:t:29J0 Neitiier the Distributorship Agreement nor any olher agreement requires Mateo to provide any other assistance or servMces to you during the operation of your Distributorship. As noted in Item 2, however, Malco has a policy under which it vvill give you one or more nevv Malco tool boxes for successfully referring a prospect who becomes a Mateo distributor. Mateo Distributor Advisorv Councils Mateo does not have an advertising fund into vvhich a Distributor must contribute, and Mateo does not have local or regional advertising cooperatives in vvhich Distributors arerequiredto participate. Mateo has a Malco Distributor Advisorv' Council (MDAC) system to foster and enhance communications bet\veen Distributors and Mateo. The .MDAC system is a strictly voluntary system, with MDACs at the disirict and regional level. M D A C representatives meel periodically with each other, with Distributors, and vvith Mateo managers and executives to discuss a variety of system issues. Mateo Distributors are not required to participate or pay any dues or otherfinancialcontributions. (12) TERRITORY Distributorship Agreement You will only be allowed to operate your Distributorship at those locations ideniified on the List of Calls and on the Potential Customers List. The List of Calls and Potential Customer List vvill be identified and allached to the Distributorship Agreement. Prior to establishing a List of Calls, Mateo will conduct a survev of various geographic areas, prior Mateo dislribulor routes, and potential new distributor routes lo detemiine a suitable List of Calls that contains, as of the date of the Distributorship Agreement, a minimum of 325 potential customers, the location of vvhich vvill be identified on the List of Calls. Mateo provides no assurance that the potential customers will acmally become your customers, or lhat due to economics, demographics or other reasons, ihe number of acmal or potential customers, and/or the businesses identified on the List of Calls, will not increase or decrease after the date ofthe Distributorship Agreenient. As noted above, the Distributorship is a business vvhich operates principally from a vehicle, and which resells the products to retail customers vvho are tvpically individual professional mechanics or businesses vvhich operate from a single location, and who generally purchase the Products for their own use. If, and for so long as, you arc in compliance with the Distributorship Agreement, Malco will not operate, or grant a license or franchise to operate, a Malco mobile distributorship that vvill be authorized to sell to any potential customers or actual cusiomers identified on your Potential Customer List, if such customers purchase Products at or from the business localed and identified on the Potenliai Customer List (see Article 1.3 of the Distributorship Agreement). Except for the rights expressly granted to you and provided in the Distributorship Agreement, Mateo retains all righis lo sell, and license or authorize others to sell, Products to any customers, at any location, and through any channels or methods of distribution. Witiiout limiting the foregoing, Mateo retains the followingrights,on any terms and conditions Mateo deems advisable, and witiiout granting you anv'rightstherein: I. Mateo, and any affiliaies, licensees or franchisees of Mateo, if auihorized by Mateo, vvtil liave the absoluterightto sell the Products, directly or indirectly, or through non-mobile distributors, includin>j_coniiiicreial saIcs-rcprescnlalJAXS._(A) to industrial customers, industrial accounts, and ovvners of vehicle repair businesses (including businesses, entities, governmental agencies, and oihers, including those vvhich may be listed on the Distributor's Lisl of Calls, but excluding the Potenliai Customers) who (i) have central purchasing functions, or (ii) may purchase and/or acquire special order products designed for multiple-party use, vvliich are noi included as part of Mateo'sregularor special purchase inventorv' lis!, or (iii) may purehase Products tiirough a bidding process, such asrailroads,airiines, manufacturers, govermnenial agencies and schools, (B) to industrial and muitiple-line and multiple brand wholesale distributors who may resell such Products to any potential purchaser or custoiner. Malco FDD'PK ->! >:o^2.\?6(i,_6 31 y^-Oii^ln 1.29:1.0 including your customers, and (C) lo vocational training schools and programs, and lo the students and employees of those schools and programs. 2. Malco, and any affiliates, licensees or franchisees of Mateo, if authorized by Mateo, will have the absoluterightto sell the Products through (A) catalogs, (B) any ciurent or fumre means of electronic commerce, including the Intemet and Malco's Website, and (C) at special and/or temporar>' venues (including race tracks, and other motor sports evenls). 3. Mateo, and affiliates of Malco, may manufacmre and/or sell products that are the same as or similar to the Products, and Mateo's affiliates may sell sueh products directly, or indirectly through wholesalers, suppliers, distributors or others, to potential customers who are the same as or similar to your potential customers and actual customers. Mateo has no control over the sales or distribution methods or operations of its affiliates, and Malco has no liability or obligations lo you due to any sales or distribution activities of Mateo's affiliates. However, currently, neither Malco nor its affiliates have any plans to operate a franchise system under different trademarks that offer the same or similar products. Currently, Malco sells the Products through its commercial sales_dcpartnient_and_CQmmercial_accounls program vvhich is described in Item 1. Mateo also sells Products to the vocation school markei (see Item 1). Except as set forth in Article 1.3, Article 1.4, and Article 3.4 ofthe Distributorship Agreement, there are no contractual limitations on the abilitv- of Mateo or any affiliate to establish other franchises or company-ovvned outlets or other channels of distribution selling or leasing similar products or services under the Malco® trademark or a different trademark. Malco vvill have no liability or obligation to you if any customer or potential customer of yours purchases or receives Products through any method or channel of distribution described above, or otherwise reserved to Malco. Further, Mateo has in the past granted (A) distributorships that do not have any territorial restrictions or limitations on the distributor, and (B) distributorships that have territories in vvhich the distributor is not limited to selling Products to a specified number of customers. Mateo will use its best efforts to deter sueh distributors, and other distributors, from selling Products to customers on the Potential Customer List, but Malco cannot and does not provide you with any guarantv' or assurance that such distributors vvill not offer and sell Products to your customers. The continuation of your rights to sell Products to actual or potential customers under the Distributorship Agreenient is not dependent upon achievement of a certain sales volume, market penetration, or other eonlingeney. Hovvever, Mateo may terminate the Distributorship .Agreement ifyou fail to: {A) (i)^maintain an inventory ofthe Products equal lo or in excess ofthe Nevv Distributor Starter InventoryandiXiiXpurchase-Products, on a weekly basis, purehase-Predtiets-in an amount not less than 80%-%^of ihe National Distributor Purchase Average based on your 12-month rolling average or, ifyou have been in business less than 12 nionths, based_on_your ycar-lo-date average:^and^mJJlMiOl^-^ niinimum_oLaJ-5%_ratio_Qf a_calcuIation_Qf_\:Qur_vcar-tQj:datC-purcliasc-aYerage_di.v lojjd ate_salcs,av:erage; (B) make personal sales calls on at least 80% of your actual or potential customers each week and on each of your actual or potential customers al least once each monlh: and (C) attend at least 80% of the Mateo-scheduled district sales meetings for your district in any 12-month period. For infomiation regarding terminated and fonner Distributors, please see item 20 (but note that the lisl of Distributors that were cancelled or terminated, or otherwise left the system, includes Distributors who voluntarily or involuntarily "separated" for reasons olher than failure to attain 80% of the National Distributor Purchase Average). .Maico F D D / P K §4^^2:>700.Cy j2 t>3~ifJ4W3.'2'.?/H) Ifyou fail to make personal sales calls to at least 80% of your potential customers for three weeks out ofany ten week period, or if you fail lo make personal sales calls to each of your potential customers at least once each month for three consecutive months, or ifyou fail to attend at least 80% ofthe Mateo-scheduled district sales meetings for your district in any 12-monlh period, then your exclusive rights under Section 1.3 of the Distributorship Agreemerit (described above) may be terminated, reduced, or modified in all respects by Malco, immediaiely upon written notice from Malco lo you, and Malco will have the absolute right to adjust the territorv^ accordingly or appoint or pemiit one or more other distributors to sell Producis to your potential customers, or to sell directly or indirectly, itself or through an affiliate, Products to your potential customers. (See Article 3.4 ofthe Distribulorship Agreement.) You do not have the right to relocate the Distributorship without vvTitlen approval from Mateo's Vice President of Sales. You vvill not have the right or option to acquire additional Distributorships without written approval from Mateo's Vice President of Sales. If you seek to acquire an additional Distributorship, you must be in compliance witii your Distributorship Agreement and all Mateo policies, including compliance with the Distributor Plus Guidelines. (13) T R A D E M A R K S You are licensed to operate your business under the name "'Mateo® Tools." You are also authorized to use the logo vvhich appears on the cover page of this Disclosure Documeni. You may only use Malco's trademarks in the manner authorized in writing by Malco. You will not have the right to sublicense, assign, or transfer your license to use the Mateo trademarks. You may not use the Mateo trademarks as part of your corporate or other legal name, or as part of any e-mail address, domain name, or other identification of you or your business in any electronic medium. You must use the Mateo trademarks only in the form and manner and vvith the appropriate legends as prescribed from time to time by Malco. The follovving is a list ofthe trademark and service mark registrations of Mateo's primary trademarks on the principal register of the United States Patent and Trademark Office (or applications on file on the Principal Register): Mark Registration No./ Serial No. Registration Date/ Filing Date MATCO 1,101,947 September 12, 1978 MATCO 1,115,963 April 3, 1979 Eagle Head in Hexagon 1,147,518 Februar>' 24, 1981 M A T C O TOOLS & Design 2,809,904 February 3,2004 There are no currently effective material detemiinalions of the United States Patent and Trademark Office, Trademark Trial and Appeal Board, or the trademark administrator in any state or any court, no pending infringement, opposition or cancellation proceedings, and no pending material litigation involving these trademarks vvhich limit or restrict their use in any state. There are no agreements currently in effect vvhich significantly limit the rights of Mateo lo use or license the use of these trademarks in any manner material to you. To the knowledge of Malco, there arc no infringing uses vvhich could materially affect your use of the licensed U"ademarks or olher related rights in any state. Mateo is obligated under ihe Distributorship .Agreement to protect the rights vvhich you have to use Mateo's trademarks and other related rights and to protect you against claims of infringement and unfair competition with respect to the trademarks. Hovvever, if anyone establishes to Mateo's salisfaciion that its rights are, for any legal reason, superior to any of Mateo's trademarks, trade names or service marks, then you are required to use such v ariances or other service marks, trademarks or trade names as required by Mateo to avoid conflict with such superior rights. Mateo FDD'PK s^mHimCi.d 33 t>3 My(My2mo (14) PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION Patents While Mateo and/or Danaher subsidiaries own or may own design patents and/or ulilitv' patents on tool chests and possibly other products that might be sold by a distributor, there are no patents that are material to the distributorship. Copyrights Mateo filed for, and received, a United States copyright for its Mateo Distributor Business System (the MDBS Program, referred lo in Item 5 above). The registration number is TX 2-495-161, and it was made effective on July 5, 1988. Mateo also filed for, and received, a Canadian copvTight for the MDBS Program. The Canadian copyright is tilled "'Computer Program for Aiding Distributors in the Distribution of Malco Tools." The Canadian registration number is 437486, and it was made effeciive on October 18,1994. Mateo has copyrighted advertising materials and designs, training films, workbooks, the Manual, and items relating to the operation of Mateo® Distributorships. Other than the MDBS Program, Mateo has not applied to the United States Cop>Tight Office to register its copyrights. There are no infringing uses actually known to Mateo that could materially affect your use of any copyrighted material supplied by Mateo in any state. There are no determinations of the Copyright Office or any court, no pending interference, opposition or cancellation proceedings, nor any pending material litigation involving such copyrighted materials w'hich arerelevantto their use in any state. There are no agreements currently in effect vvhich significantly limit the rights of Mateo to use or license the use of these copyrighted materials in any manner material to you. Confideniial Operations Manual In order lo protect the reputation and goodwill of Malco and to maintain operating standards under ihe System and the Marks, you must conduct your business in accordance with the tenns of the Distributorship Agreement and in compliance vvith the provisions ofthe Manual and any vvTitten directives issued by Mateo. Confidential Infonnation In addition lo the Manual, Mateo vvill provide you with olher confidential business infonnation and proprietarv' materials which relate to the operation ofthe Distribulorship business. You must keep confidential, during and after the lerm ofthe Distributorship Agreenient, the Manual and all such confidential business infonnation and proprietarv- materials disclosed to you by Mateo. You may not disclose the confidential infonnation or proprietary materials to any person or use them for your benefit except in connection with the operation of your Distribulorship business. You will be liable to Mateo for damages caused by any breach of confidentiality. (15) OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS You must use your best efforts to promote the sale ofthe Products and to provide service and warranty support lo your acmal and potential customers. You vvill be responsible for all aspects of managing the business including, but not limited to, extendingcxlending credit, budgeting, monitoring and collecting time payment accounts, collecting PSA Gold Card accounts, sales,fiureltasespurchases.and inventorv' management and control. Mateo FDD PK ?^4:vyi;2.l7(-,e.{, 34 (4_U)4i^3.2!J.::Ill Mateo expects lhat most Distributorships will be operated by an individual. The individual will operate the truck and conduct the daily operations of the Distributorship. Mateo recognizes that in some instances you may utilize the assistance of a spouse, friend, or assistant and often it vvill be a spouse ("Spouse"). While Malco recognizes the use ofihird party- assistance in performing some clerical and bookkeeping functions, the appointment and grant of the Distributorship is to you, and Malco will rely on you to perform the obligations required under the Distributorship Agreemeni. Ifyou seek the assistance ofa Spouse, both you and the Spouse will be liable for thefinancialobligations and debts of the Distributorship and for causing you to comply with this Agreement. In addition, the Spouse must comply with certain obligations under the Distributorship Agreement, such as, not disclosing confidential infomiation and not engaging in competitive activities (See Item 17 below, and Section 1.6 ofthe Distributorship Agreement). If the Distributorship is granted to a parmership, corporation, or limiled liability company, an individual designated by the partnership, corporation, or limited liabilitv- company must manage the business and personally guarantee all debts and obligations of the distributorship lo Malco. While the Distributorship is contemplated to be operated by one individual, if you own more than one Distributorship, you may appoint an "Operator" to operate the second Distributorship, subject our approval. If you have only one Distributorship, and you desire to hire a third party to operate your sole Distribulorship, you must obtain prior vvTitten authorization from Malco's Vice President of Sales before doing so. In either case, tiie appointed "Operator" must successfully complete the New Distributor Training Program and you must agree to assure that all business information and materials disclosed to you and/or your operator will be kept confidential Your operator must sign a confidentiality and non-compete agreemeni, in a form that is acceptable to Mateo, vvhich will contain covenants similar to those described in Items 14 and 17. (16) RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL You may only sell Products and other merchandise approved by Mateo, and you may not sell any products, tools, equipment, or other merchandise vvhich are competitive vvith any of the Products, except for items that are traded-in by your customers, without Malco's prior written consent. Mateoreservestherightto change the types of authorized products and services vvhich comprise the Products at any lime in our discretion. Further, you may not offer for sale, sell, or distribute any product not approved in advance by Mateo (including, for example, hazardous materials, pornographic materials, or products not related to your business) and you must discontinue the offer, sale, or distribution of products promptly upon notice from Malco. You may not operate the Distributorship or sell any Products to any person, eniity, or business, or at any location not ideniified on the Potential Customer List, even if such potential customer or location is adjacent to. or near, a location on your List of Calls or Potenliai Customer List. Also, you may not sell Producis to any customer vvho moves to a location or business not identified on the List of Calls or Potential Customer List. Provided that you comply with the Distribulorship Agreement and the requirements of the System, Mateo will not impose any olher restrictions upon you as to the goods or serv-ices whieh you may offer or to the customers to whom you may sell. Mateo does not impose any restrictions or requirements conceming the prices at which the Products or olher goods or services may be sold by you. (17) RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP This table lists certain important provisions of the Distributorship Agreement and related agreements. Vou should read these provisions in the Distributorship Agreement attached to this Disclosure Document. Provision Maico F D D ' P K ?-(*Mi2.t766.6 Section in Distributorship -Agreement Summarv- 35 y3Uti:(isa3.29.'l(> Section in Distributorship Provision Agreement Summarv a. Length of the franchise tenn Article 2.1 10 Years b. Renewal or extension of the tenn Article 2.2 10 Years c. Requirements for franchisee lo renew or extend Anicle 2.2 You must give 180 days notice; satisfy all material rcquirements of your current Distributorship Agreement; pay all amounts due to Mateo; modemize your Mateo Tmck and equipment; sign a new Distributorship Agreement (and this new agreement may have terms and conditions that are materially different from the original Distributorship Agreement); and sign ajoint and mutual general release d. Tennination by franchisee Article l l . l 30 days notice e. Tennination by Franchisor without cause Not applicable NQLaDolicablc Termination by Franchisor with cause Article 11.2 Mateo has therightto terminate your Distributorship Agreemeni if you are in breach oftiieDistributorship Agreement or any agreements entered into with Malco, make an assignmeni for the benefit of creditors, face a proceeding in bankmptcy, attempt to assign or transfer without Mateo's consent, abandon the Distributorsliip, either voluntarily or involuntarily or due to repossession ofthe Malco Tools tmck and imentorv', fail to make timely payments, or deny Mateo access to audit books and records. "Cause" definedcurable defaults Article II.2 Malco FDD/PK i ^2.1766.6 ff applicable law does not specify a time period, you will liave <K>30 days to cure a violation of any material provision of the Distributorship Agreement: you make an assignment for tiic benefit of creditors; a proceeding is instituted against you in bankmptcy or insolvencv'; you attempt lo assign your Distributorship Agreement wiihout Malco's consent; or you fail lo timely pay any amount due to Malco 36 u"? •>o-a>i:v-29. ID Provision Section in Distributorship Agreement Summarv h. ''Cause" defined rron-curable defaults Article 11.4 You will not have a right to cure ifyou abandon your Distributorship; you are convicted of or plead guilty to a gross misdemeanor or felony; your conduct materially impairs Malco's marks or the System; yourefuseto allow Malco to audit yoiu" books; you have been found to have submitted fraudulent credit apphcations; you commit fraudulent act(s); you offer to sell or sell any producis to customers not identified on your List of Calls or Potential Customer List without Mateo's express vvritten authorization; you cannot perform obligations for six consecutive months or for six months within a period of 18 consecutive montiis; you die; you commit the same default again within a 12 month period aftertiieprevious default that you previously cured; or you commit tlie same or different default three or more times within any 12 montii period, whetiier or not cured after notice; or you make an assigmnenl for the benefit of creditors or if a voluntarv' or involunlarv' proceeding is instituted againsi you in bankmptcv^ or under any other insolvencv' or similar lavv; or you fail to submit to, or you fail, any dmg or alcohol testrequiredby Malco. i. Frandiisee's obligations on termination or nonrenewal Article 11.5 You must cease using Malco's marks and tiie System; remove Mateo's marks and logos from your Mateo imck; pay vvliat you owe Malco pursuani lo the Distribulorship .Agreement including interest on your Open Purehase Account's balance; provide Mateo with all inventory and fmancial infonnation for last 12 months; provide Malco with all customer information; and remm all printed maierials. software and manuals Mateo provided vou. j. Assigmnenl of tiie contract by franchisor Article 10.5 Norestrictionon Malco's right to assign k. 'Transfer" by franchisee - defined Article 10.1 Transfer of ai^- interest in the Distributorship or substantially all of vour Distributorship assels 1. Franchisor approval of transfer by franchisee Article 10.2 Malco must approve in advance and in wriiing any transfer made by you but will not unreasomibly vviilihold its conseni ni. Conditions for franchisor approval of transfer Article 10.2 You arc not in default and pay all money owed to Mateo pursuani lo the Distribulorship Agreement; you sign ajoint and mutual generalreleasevvith Mateo, tiie Inmsferee meets Mateo's standards: the transferee successfully completes the New Distributor Training Program; and you and Ihe transferee complete all nccessar>' assignments and oilier legal documents. Malco may also rely on any olherreasonablecondilions in dctennining whether lo approve the transfer. Franchisor's right of first refusal to acquire franchisee's business Not applicable NoLappJicable Maico FDD-'PK ?-;i:?i-fs2.17.66.6 37 _aii3/2.9-'lti Provision Section in Distributorship Agreement Summar\ 0. Franchisor's option lo purchase franchisee's business Not applicable NoLapplicable p. Death or disabilil>of franchisee Article 11.4 The death of tlie Distributor is grounds for default and termination of the Distributorship Agreement. You will not have the right to cure if you are disabled to the extent tlial you cannot perform such obligations contained in the Distribulorship Agreement for a period of six consecutive months, or if you die. q. Noncompetition covenants during die tenn of tiie franchise Article 11.8 During the tenn of the Agreement, the Distributor and Spouse must promise that the Distributor, Spouse, the Distributors employees and the immediate family members oftiieDistributor and Spouse will not engage in any activities in direct or indirect competition with Malco, including witiiout limitation, a business that manufactures, sells, and/or distributes any products that arc the same as or similar to the Products, and will not sell or attempt lo sell to any customers or Potential Customers of the Distributorsliip any producis that are the same or similar lo the Products. Noncompetition covenants after the franchise is tenninated or expires Articles 10.6 and 11.8 For one year after the termination of your Distribulorship Agreemeni, the Distributor and Spouse must promise tliat each of the DisUibutor Spouse, tiie Distributors einployees and the immediate family members ofthe Distributor and Spouse will not sell or attempt lo sell any tools to any customer to vvhom the Distributor sold Products in Ihe previous 12 montiis. or to any person or business localed on, or identified in, the List of Calls and Potential Custoiner Lisl if the Distributor had made any sales calls to such person or business in the previous 12 months. Malco encourages nevv Distributors lo obiain a noncompetition agreemeni from the previous Distributor in cormection vvith a transfer or assignment of theroute,Ihe business or tiie accounts. s. Modification of the agreemeni Article 13.5 Any modification must be in writing and signed by both you and Malco. 1. Integration/merger clauses Article 13.5 The Distributorship Agreemeni is Ihe eniire agreemeni between vou and Malco,_buljhis provisionj\vilLnol.acl. or.bc interpreted. asji^disclmuiCLof anv_repKScntat io njnadc J nJlus_Fran_cliisc Dj sc lo sure_Docuinc nt_orj ts_ex liibi I s_or a i nc iidmciits. u. Dispute resolution by arbitration or mediation Article 12 E.xcept for certain claims, all disputes must be arbitrated in Summit orCuvahosii-Countv. Ohio V. Choice of fomm Article 12.9 Litigation must be in Summit QLCuyaliQsa.Countv, Ohio (See Note below) w. Choice of lavv Article 13.3 Goveming law vvill be the laws ofthe Stale of Ohio (See Note below) Mateo FDD-'PK 544^^2.1766.6 38 fB-Mi-V--^y29L\() Provisions ofthe Distributorship Agreement giving Malco the right to terminate in the event of your bankruptcy may not be enforceable under federal bankruptcy law (11 U.S.C. Sec. 101. et seq.). Notes 1. If a state law requires any modifications to these provisions of the Distributorship Agreement, those modifications will be found in Exhibit H, the Stale-Specific Disclosures and State-Specific Amendments to the Distributorship Agreement. 2. In addition to the provisions noted in the chart above, the Distributorship Agreement contains a number of provisions that may affect your legal rights, including a mumal waiver of a jur>' u-ial, mutual waiver of punitive or exemplary damages, and limitations on when claims may be raised. See the Distributorship Agreement Article 12. Werecommendthat you carefully review all of these provisions, and all ofthe contracts, with a lav\yer. (18) PUBLIC FIGURES Malco does not use any public figure lo promote the Distributorships. (19) FINANCIAL PERFORMANCE REPRESENTATIONS The FTC's Franchise Rule pemiits a franchisor to provide infonnation about the acmal or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the infonnation, and if the information is included in the disclosure document. Financial performance information lhat differs from lhat included in Item 19 may be given only if (I) a franchisor provides the acmal records of an exisiing outlet you are considering buying: or (2) a franchisor supplements the infomiation provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances. Presented beiovv are certain operating results from 1,446.(K15, Distributors in 200R2()j|9, The chart reflects certain average gross revenue figures, referred to as '"Average Total Completed Business," for the Malco Distributors, which includes the revenue from the sales of Malco Products and other producis. The information is segregated into thirds, based on Total Completed Business. The infonnation in the chart is explained beiovv. Please read carefully all ofthe informaiion in this Item 19, and all ofthe notes follovving the data, in conjunction with your review of the historical data. Average Total Completed Business — 2Ot4j{2009 Top 1/3 Middle 1/3 Bottom 1/3 Sa7aj>a^S250.47« s;448vmsi73.0()f; No. of Distributors Above Average 4-24126 No. of Distributors Above Average No. of Distributors Below Average ^4^209 No. of Distributors Below Average \lMCo F D D ' P K 5}yv'-ji23"66.6 39 VHAI 57 No. of E)istributors Above Average 199 No. of Distributors Below Average -U^136 ai..i0.0s\i-2'>'lf) Notes 1. The charts reflect the operaling data for 1.4-56005 Mateo Distributors in the United Slates that were in business for all of ^00^2009. and lhat reported sales for at least 48 weeks during jOOH2QQ9.. Malco is not providing, and this chart does not reflect, information regarding Distributors vvho started during -200^2009, or those vvho left the system or stopped selling Malco products during 2A)(^2Q09. The three groupings of Distributors (Top 1/3, Middle 1/3 and Bottom 1/3) included 3-36r^36~and-3?7215 Distributors-respee-livelyjn gjich^gmup. 2. The terminology, "Average Total Completed Business." as used in this chart means the total cash or revenue a Distributor received during S40>v2009. including sales lax collected, from the sale of all products and services. This includes revenue from the sale of Mateo Products and products acquired from third parties. The revenue received by the Distributors is comprised of cash sales. Time Pa>Tnent collections from previous sales, credits received by the Distributor from the sale of PSA (Purchase Securitv- Agreements, which are installment contracts; see Item 10 above), cash received based on monthly invoices and customers (usually products sold lo a shop or business, and not an individual), and rebates based on timely payments for products (see note 3 beiovv). The average is comprised by adding the lotal business for all Distributors in the group, and dividing that number by the nuniber of Distributors in the group. This does not include any Volume Payment to Terms bonus, or rebate, payments. 3. The data in the chart is obtained from the Distributors through the MDBS system (see Item 11). As Distributors purchase producis from Mateo, they also report on sales made and revenue received. A weekly sales report is generated if the Distributor places an order lo purchase products in a given week. Therefore, the information in tiie chart is based solely on data received from the Distributors through MDBS. These figures have not been reviewed or audited by Mateo. 4. Substantiation of the data used in preparing the materials in this Item 19 vvill be made available to you upon reasonable request. 5. Actual results varv' from Malco Distribulorship lo Malco Distributorship. Your sales, revenue and income will be affected bv a varietv' of factors, including your sales and marketing skills: your frequency of visits to aclual and potential customers; efibrts to collect on unpaid invoices or installment contracts; retail prices you charge for products: discounts you may offer; prevailing economic or market conditions: demographies; interest rates; your capitalization level; the amount and terms ofany financing that you may secure: and your business and managemenl skills. 6. Other than revenue figures above, the chart does not include any estimate of, or specific or historic data regarding, costs, expenses or debts that a Distributor has incurred, or may in the future incur. We cannot predict or project your costs and expenses. The following is a list of the t>-pes of expenses that a Malco Distributor may incur: • Labor costs, including payroll, taxes and benefits (vvhich may include health and/or life insurance, vacation, and pension plan contributions) for you, the individual Distributor, or any employee. • Cost of goods sold, which includes wholesale cost of products that may be offered. • Truck costs, including lease or purchase payments, maintenance, gas, and similar costs. • Insurance. • Marketing and promotional costs. Malco F D D ' P K i « ^ 2 3 _ 7 6 6 . 6 40 i^-.UWW3--2i)i](! The types of expenses, and the amount of costs and expenses, are likely to var>' from Mateo Distributor to Mateo Distributor and from lisl of calls to lisl of calls. These may not be all of the expenses that you m ^ ' incur. 7. Prospective distnbutors should be aware that in evaluating a fmancial performance representation or an eamings claim that includes revenue or sales figures only, or does not include all costs of goods sold, operating expenses, and other expenses, that costs and expenses must be deducted from the gross revenue or gross sales figures to obtain net income or profit. This Item 19 financial performance representation does not include net income or profit. 8. The information in this Item 19 refiects the aggregate resuhs of 1,4-56005. Mateo Distributors. It is not a representation or guarantee that you will or may achieve any particular level of revenue, sales, or profits in the operation of your Distributorship. We cannot estimate or predict the results that you may experience as a distributor. You are strongly advised to conduct an independent investigation of this opportunity to evaluate the expected or potential costs and expenses you vvill incur as a Mateo Distributor. You should consult your attomey, accountant, and other professional advisors. Also, current and former Distributors listed in this Disclosure Document may be one source of information. 9. Except as disclosed above, we do not make any wTitten or oral representations or statements of actual, average, projected, or forecasted sales, profiis, or earnings to prospective distributors. We do noi fumish any oral or other vvritten information conceming the acmal or potential sales, costs, or income of your business. We do not authorize any person representing us to fumish this type of information or to represent or estimate to prospective distributors, any dollar figures relating to a distributor's operation. You understand that ifyou receive any unauthorized representations as lo eamings, sales, profits, or prospects or chances for success, you should not and vvill not use or rely on any representations as you consider your purchase of a Malco Distribulorship. (20) O U T L E T S A N D F R A N C H I S E E I N F O R M A T I O N As of December 31, 20082009, Malco had 1,443462 operational Mateo® Distributorships and no companyowned Matco-E' Distributorships. The follovving tables provide information conceming the Matco(^> Distributorships by stale: Table 1 Svstemwide Outlet Summarv For vears ^tiM'i-2tMm2007-2009 (Note 1) Outlet Type Franchised Company-Owned Total Outlets Malco FDD.'PK i^!!:xL^2.176r .6 Year Outlets at the Start of Ihe Year Outlets at the End of the Year Net Change 24«i62im 4453^1490 44^01479 3^U) 3W20M 44mi4iy) 447-9144? (H4.36) 2imnm9 +4^.1441 444^^.1462 (36^.1.2 200621102 0 0 0 2W2008 0 0 0 204X2009 0 0 0 44^1479 3^.11) 2(M»62007 41 g3"i>>-',*iJ.^.^29-Kt 3W>72008 449ai47i 447-9-1443 (44436) 30tm2009 44^1443 4443-1462 (36).IJ2 Notes: (1) All numbers are as of thefisealyear end. Eachfiscalyear ends on December 31. Table 2 Transfers of Outiets from Franchisees to New Owners (other than the Franchisor) For years 30§62imi to m m i i m (Note 1) State (Note 2) Arizona Gajifarniii A rkan sas Year Number of Transfers 30062QQ2 02 2W2DM 2 34)082009 34 30t)62MI 0 3OO?2008 40 01 UimeijiCalifttmia 14MH'ji»»» Ctt lo ra (Itt 20062M2 01 2oo72im8 40 3O0821M12 0 2IH)621Mi2 0 30 ab4ttrnnnecticut TesrtsBttrida \Vis<-o»smGeor*^ia T^KidUlinois Indiana Malco FDD'PK <2.>766.6 200X2009 01 30062007 0 3o(»72mm 40 301*82009 01 30062007 0 30072008 40 3Wt82im 42 30062007 0 30072(108 40 3008200a 02 3*m62002 01 3tm^200S 90 30*>X200a 32 2007 0 42 State (Note 2) Louisiana Michif^an Minnesota Montana New Jcrsev New Mpvirn New York Qhitt Penn*«vlvania Texas Vir«inia Malco FDD-TK ?+i^2.1766.6 Year Number of Transfers 2008 0 2009 1 2007 2 2008 0 2009 1 2007 0 2008 a 2009 2 2007 0 2008 0 2009 2 2007 0 2008 0 2009 1 2007 0 2008 0 2009 1 2007 0 2008 0 2009 1 2007 0 2008 0 2009 5 2007 1 2008 0 2009 0 2007 0 2008 0 2009 1 2007 1 2008 1 2009 4 2007 0 2008 0 43 i^.^mip.i.'29.'10 Year State (Note 2) Washinf>;ton Wisronsin Number of Transfers 2009 1 2007 0 2008 0 2009 2 2007 1 2008 0 2009 a 2007 iQlal 2008 i 2009 i5 Notes: (1) (2) All numbers are as of the fiscal year end. Eachfiscalyear ends on December 31. States not hsted above did not have any activit\' or distributorships during these three years. Table 3 Status of Franchised Outlets For years 2tM»6200I to 3O0S2O0*> (Note 1) Year State Alabama Outlets at Start of Year Arizona , Terminations 3-1 300620 02 Alaska Outlets Opened NonRenewals Reacquired by Franchi.sor Ceased Operations Olher Reasons Outlets al End of the Year ^2 44i^ 3*M)720 OS L>lfi 34. I 2 1644 300820 09 46J4. 43 4 JE 4417 300620 02 7 2 1 7 300720 7 '> X. 2J.. 75 2*MJ820 09 7-5. 4 4 5 300620 01 3438_ 407. 20t^32ii ^17 -J.5 68 2 ^^2 08 Mateo FDD'PK i W ^ 2 . ^ 766.6 44 State Arkansas Year Outlets at Start of Year Outlets Opened Terminations 300820 02 5741 4-57 2 24*0620 02 17 24M)720 4718. NonRenewals Reacquired by Franchisor Ceased Operaiions Olher Reasons Outlets al End of the Year 7 4341 ^3 52 47B 35 24 4812 5 -^1 4^21 m 300820 02 Califomia 4-94.125. 3327 X2 1 3625 495194 4^.194 3712 36 +2 3426 494177 34H»X20 02 494122 4^M 62 2621 -177.165. 304*620 44M -^1 1 1 441^ 304*720 08 4415 3 4 I 4^12 200820 02 -1-512 31 1 17 200620 07 i^24 67. 1 S5 3421 300720 08 2425 76 1 5 3-526 2-0(m20 02 3526 -1 ^1 361L 300620 02 43 1 1 3 300720 08 3 4 I ^2 24M»820 02 3-2 I 21 30*t620 02 0 0 300720 08 0 0 300«20 02 0 0 34MJ620 ai 304*720 as Connecticut Cobrado Delaware Dis rict of CoLimbia 4 ai .Mateo FDD PK > l ^ i x 2 : 706.6 45 •^yi-yv.i State FloHda Year Outlets at Start of Year Outlets Opened Terminations 34m620 02 H2§9 4811 42 +^i2 37 24MJ720 OS Gei rgia Illirois Ind ana Iowa Ceased Operations Other Reasons Outlets at End of the Year 10 8920 ^S2 4*082 4^17 72 4^14 S381 300620 02 **"52 *^ 4 46 59 300720 08 59 68 3 62 5955 ^*2 31 "^B ^51 01 610 56 300620 02 300720 08 Idaio Reacquired bv Franchisor 300820 02 300820 09 Ha"vaii NonRenewals 52 1 4 -w.u 24 4 1 11 4- 05 4011 300820 02 4tJJl 300620 02 SIO 30t>720 OS 4«11 6 53 448 300820 02 14^ I 3 82 24M»620 02 7482 -1^5 200720 08 Ji280 300820 02 **"M2 4412 3O(t620 07 3.>36 300720 08 1 1 65 ^*2M 1- 4 59. mu 1 ^2 8386 -^6 4 H 3638 3638 ^2 1 ^1 3832 34M)820 02 3J*12 73 1 71 3-38 30(t620 02 3«1.7 42 ^3 -1716 24i0720 1-716 2 1 Mateo FDD/PK ^ii^-^ir06.6 4617 46 ^?:2? It) Slate Year Outlets at Start of Year Outlets Opened Terminations 300820 02 4612 34 20**620 02 431^ 300720 08 4514 30082a 02 4412 304K*2a 02 3422 ^5 1 300720 08 3324 51 4 34M*820 02 3421 +1 ] 30062Q 02 16 300-720 08 4614 42 300820 09 14 33 3**4*620 02 3 4 300720 08 3 200820 02 3 300620 02 -3335 5 1 300^20 08 35 H NonRenewals Reacquired by Franchisor Ceased Operations Other Reasons Outlets at End of Ihe Y'ear 42 4712 1 4414 1- ^1 4412 4 4 4315 3- 3324 1 1 ^21 4 1 3324 m Kansas Kertucky Louisiana Ma nc Ma ^ land 204*820 02 Ma-isachusetts 300620 02 17 34*4*720 08 .1.712 300820 02 -1^]0 Malco FDD-ZPK >i>^2,\766.6 2 2 36 14 1 31 44.15 4 3 3 1 ^2 1 33 35 1 4 31 341L 4 +2 1 42 3-4-26 4 2 -1-1 4^12 1 31 42.ni 4 1 44111 _\ 2 47 y.:i_U;:(;ii3'29 10 ^latc Mii^higan Minnesota Mississippi Year Outlets at Slart of Year Outlets Opened Terminations 300620 02 5fy5 ^41 34*0720 08 4552 300820 02 NonRenewals Reacquired by Franchisor Ceased Operations Other Reasons Outlets at End of the Year 4 4 4552 448 2 •^i ^350 5350 811 33 85 5055 300620 02 3430 ^ 2 6 3026 300720 08 3026 -H 64 3622 300820 02 3622 ^2 1 •^1 3730 20**620 02 4"11 2 1 4412 34*072a 4412 33 1 1_ 1 12 12 H -1 -1- 1 •L215 2 I -^2 34*22 as 34M*820 a2 Mi^'souri Mo ita n a Net raska Nev ada 300620 02 4-122 300720 08 34*22 3 31 1 33 3^25 300820 02 37-25 3 1 I 42 3^24 34*4*620 02 5 4 4 1 H 300720 OS 54 4 4 3O0820 02 4 1 1 4 34*4*620 02 4 1 4- 45 24*4*720 OS 45 42 1 56 20**820 02 56 3-3 J- <>2 300620 07 4411 1 4 •^Yl2 3**4*720 4312 1 3 4310 766.6 1 Malco FDD'PK ?44^2.1 1 48 ^yi'jiu) State Year Outlets at Start of Year Outlets Opened 300820 02 42-m 300620 02 402 300720 OS Terminations Ceased Operations Other Reasons Outlets at End of Ihe Year 4 3- 10 3 +2 ^2 91 2 ^5 300820 02 75 3 5 20**620 02 4345. +2 1 2 31 4511 300720 08 4541. 32 42 3 42 4432 304*820 02 4412 -*-3 2 ^ 3-731 30062Q 02 +2M H 31 44J2 200720 OS 4412 45 42 4^15 300820 02 4^15 ^1 ^2 4T\16 34*4*620 02 ^761 •^1 1 ^2 6360 3OO?20 OS 6360 -1-2 •93 64*56 24*4*820 02 64*56 31 4S ^ai 24*0620 02 54 -tl ^5 54 300720 OS 54 32 5-7 300820 02 5451 21 74 -5452 300620 02 3-2 4 2 34M*72a 08 2 30082Q 02 2 NonRenewals Reacquired by Franchisor as Nev Hampshire Nev Jersey NevMedco Nev York No-th Ca-olina No-th Dakota .Mateo FDD-H'K 5]yo!<2.^ 766.6 ^ 8 6 2 1 49 Stale Oh 0 Ok ahoma Year Outlets al Start of Year Outlets Opened Terminations 300620 02 54^ 54. -1^2 24*4*720 ^5*^2 +2 3 51 47^1 20**820 02 47il -75 1 31 51 -^2 -1-^12 4^^ 300620 02 304*720 08 1412 Reacquired by Franchisor Ceased Operations Olher Reasons Outlets al End of the Year 5042 35 3OO820 02 Ori-gon NonRenewals -5 1 21 1 +2 ^1 13 42 4 4^11 300720 08 -i^iL 31 4 11 304*820 02 11 41 41 4413 300620 02 4 ^ 95 2 -26 4-744 3(*O720 08 4 ^ 53 31 4 ^ 300820 02 4442 ?1 1 42 204*620 02 4011 I 441^ 300720 OS 4410 i 300820 02 10 42 34*4*620 02 3^2 304*^20 OS 2 34***820 02 2 1 2-1 3O0620 02 44jl 1 4415 34*0720 -1415 -1 4516 304*620 a2 Pernsylvania Puerto Rico Rh..de Ishjid South Ca~olina Mateo F D D ' P K #4*M52.V7C?(;.<i 4 4 1 1 10 . 4 4011 4 2 2 2 1 50 State Year Outlets at Start of Year Outlets Opened Terminations NonRenewals Reacquired by Franchisor Ceased Operations Other Reasons Outlets at End of the Year 300820 02 4516 2 +2 4 4^42 200620 02 -^•1 42 1 31 300720 OS 34 2 4 46 08 South Dakota 6 300820 02 Ter nessee 304*620 07 3627 300720 3726 4 1 34 ^26 I +2 2622 OS Te>as UtUi 304*820 02 36^ 62 +2 34 2^30 300620 02 433124 4722 I 4612 4341J9 204*720 OS 4-24129 21 15 4491.38 300820 02 449.13,8 3523 4 15 4^146 34*1*620 02 13 3 5 13 300520 13 3 ^X •1^45 431^ 31 +2 4^14 H •i: 2 ^1 as 20**82a a2 Vermont 30062a a2 Virginia 30072a 08 +2 2 24)t*820 02 2 2 300620 02 3618 4 2 ^5 3^31 304*720 08 3ii35 45 2-1 5 3514 34*0820 02 3534 ^2 4 53 3433 Malco FDD'PK ?4>^23766,6 51 State Washington We^t Virginia Year Outlets at Start of Year Outlets Opened Terminations 300620 02 34)11 95 4 24*4*720 08 4433 200820 02 4335 200620 02 6 Wj )ming Totals Reacquired by Franchisor Ceased Operations Other Reasons Outlets at End of Ihe Year -^1 4433 32 4-11 304*720 08 Wi: consin NonRenew als 1 96 3^31 1 1 ^1 4 4 1 +2 300820 02 1 1 204*620 02 4415 7 4- 2 56 4544 300720 08 4511 7 1 ^ 62 4411 304*820 02 4443 76 4 ^2 4312 300620 02 34 42 20O"2O 08 46 3 1 65 300820 02 65 4 1 >2 24*1*620 02 44531490 ^21i 2415 300320 OS -14.94)1479 34-9213 300820 02 44791443 3442J.5 46 4311 3H 0 ^J82 449ai_422 ^2 0 487200 44591443. 71 0 34*0.152 44431462 Notes: (1) All numbers are as of the fiscal year end. Each fiscal year ends on December 31. Table 4 M;ilco F D D ' P K ^ ^ ¥ ^ 2 . 1 7 6 6 . 6 52 ii^3'2y'10 Status of Company-Owned Outlets For years 30062007 to 3008 2009 Statt'(Nntel) Year Outlets at StarLiif the Year DulktS Onened Reacquiml From Franchisee ilulkts M:)ss:irhi).srfts fNnte 2* 2002 0 0 0 2008 0 0 2002 _0 2002 Totals Oulkts Sold to Franchispe Outlets at End of the Year 0 0 0 0 0 0 0 0 0 0 0 0 0 Q 0 0 0 0 2008 0 0 0 0 0 0 2002 0 0 0 0 0 0 Nojes: .,S.tates.nQtljstcd.did_noLhavejuiv_actiYitiesj3Uticls,or_distrib.utQt^hips. ^As of March 344^4*0915. 20J^0. there are no6 company-ovvned outlets_(.vvhiclLare_distabutQ0lhip rou OBenilcdJby Malco emplov^ej)Jn iMassachusclls. Tlierc_\veie_iiQiieJ.a.aniistate, in 2007^2008 and 2009. Table 5 Projected Openings As Of December 31,3008Toi-2009 imL2010.(Nole 1) Stale 1 1 1 1 1 Franchise Agreements Signed But Outlet Not Opened Projected New Franchised Outlet In The Next Fiscal Year Alabama Alaska Arizona Arkansas California Connecticut Colorado Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentuckv Louisiana Maine Marvland Massachusetts Malco F D D ' P K ?4>M^:.1766.h 3 2 4^.11. 3 4514 5 6 2 2 44*9 7 2 2 408 5 3 4 4 5 2 5 5 53 Projected New Company-Owned Outlet In The Next Year 6 State Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersev New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsvlvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Total Franchise Agreements Signed But Outlet Not Opened Projected New Franchised Outlet In The Next Fiscal Year 0 6 6 5 5 3 3 3 3 8 4 6 5 2 5 5 5 6 2 2 4 2 5 4614 3 2 5 86 2 5 0 35(4240 Projected New Com pany-O wned Outlet In The Next Year Notes: (1) Forthe fiscal year begirming January 1,3*Kt92010. Attached as .Appendix B is a list of the addresses and telephone numbers of our Active Distributors. Attached as Appendix C is a list containing the name, cilv' and state, and current business telephone nuniber or last known home telephone nuniber of everv dislribulor whose Malco Distributorship has, vviihin the one-year period immediately preceding December 31, 34*4*X2009, been temiinated, canceled, not renewed, or vvho has. during the same period, otherwise voluntarily or involuntarily ceased to do business as a Malco distributor, or who has not communicated with Malco during the Icn-vveek period preceding the date of this Disclosure Docunient. (Mateo's record of ''no communication" indicates distributors for whom there have been no purchases fiom Malco during the six-week period ended December 31, 34)OR2(K)y.) I f y o u buy a Malco Distributorship, your contact information may be disclosed to olher buyers when you leave the franchise system. No distributors have signed a confidentialitv' clause in a distributor agreement, settlement or other contract vvithin the last three years that would restrict their abilitv to speak openly about their experience vvith Malco Tools. Mateo FIJD'PK ^lJ^2.m<-.6 54 yA-^Tiiw''^3.^29']0 As of the date of this discIosiu"e document, there are no Mateo Distributor associations in existence regardless of vvhether or.nQtlhev use our trademark-omot. As_notedJnJtemJ_abo.>:e^MatCQ,currentiY^lias_a,p_olicv-underAvhichJt_\v fie_e_to_an_existing distributor for re ferri ng.a.pro_spe_ct who becomes^a Malco jislributor. (21) FINANCIAL STATEMENTS Attached as Appendix A are: (1) The audited financial statements of Mateo for the periods ended December 31, 2W82009, December 31, 304472008, and December 31, 2^062007 whieh includes the balance sheets for the periods ended December 31, 34)OST-Deeember->-W4OO72009 and December 31. 3O06T2008 and the related statements of eamings, stockholder's equitv and cash flows for each ofthe three vears ended December 31.2009, 2008,24407^and 3f4062002(22) CONTRACTS Attached to this Disclosure Document as Appendix D is the Malco Tools Distributorship Agreenient, with the follovving exhibits attached thereto: Exhibil Exhibil Exhibil Exhibit Exhibit Exhibit A B C D E F E.xhibit G E.xhibii H Exhibil I Exhibit J E.xhibii K-1 Exhibil K-2 Exhibil L Exliibit .M Exliibit N Exhibit 0 Exhibil P Exliibit Q Lisl of Calls and Potenliai Customer Lisl [Reserved] Installment Promissorv' Note Securitv' Agreenient Distributor's Purchase-Security Agreemeni Credit Assignment Agreement Addendum and Guarantv' to Distributor's Purchase-Securilv' Agreemeni Credil Assignment Agreement Purchase Money Securilv' Agreement Purchase Money Securiiy - Master Agreement End User's Credil Application Subject to Malco Tools/P.S.A. Credit Approval Distributor's Purehase Securitv- Agreemeni Recourse Credil Assignment Agreement Purchase Money Securiiy Agreement - Nevv Tech Recourse Purchase Money Securitv' Agreement - Gold Recourse Distributor Lease Agreement Shop Owner Lease .Application Equipment Lease Agreemeni Malco Distributor Business System Software License, Maintenance and Support Agreement and Infomiation Fomi Guarantee, Indemnification, and Acknowledgment Malco Tools Web Page Agreement Attached to this Disclosure Document as Appendix 1 is the Malco Distributor Consent to Alcohol and Dmg Testing form. (23) RECEIPTS The last page of this Disclosure Document is a detachable acknowledgement of receipt. Malco F D D ' P K ? « ^ 2 3 7 : 6 6 . 6 y,-^^i44iii3:29/]0 MATCO TOOLS FRANCHISE DISCLOSURE DOCUMENT APPENDIX A: FINANCIAL STATEMENTS Mateo FDD'PK .^IX'^.^.A-1- a;aa.a'^23766.6 3 29'10 CONSOLIDATED FINANCIAL STATEMENTS NMTC, Inc. and Subsidiaries Years Ended December 31, 2009, 2008 and 2007 With Report of Independent Auditors E r n s t s Young L L P N M T C , Inc. and Subsidiaries Consolidated Financial Statements Years Ended December 31, 2009, 2008 and 2007 Contents Report of Independent Auditors 1 Consolidated Financial Statements Consolidated Balance Sheets Consolidated Statements of Eamings Consolidated Statements of Stockholder's Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements 1003-1137048 2 3 4 5 6 |!ll""" Ernst & Young LLP 621 East Pratt Street Baltimore, Maryland 21202 Tel:+1410 539 7940 Fax:+ 1410 783 3832 wv.'w.ey.com Report of Independent Auditors To the Sole Stockholder of NMTC, Inc. We have audited the accompanying consolidated balance sheets of NMTC, Inc. and subsidiaries (a Delaware corporation and a wholly-owned subsidiary of Mateo Tools Corporation) as of December 31, 2009 and 2008, and the related consolidated statements of eamings, stockholder's equity and cash flows for each of the three years in the period ended December 31, 2009. These financial statements are the responsibility of the Company's management. Our responsibilit>' is to express an opinion on these fmancial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company's intemal control over fmancial reporting. Our audits included consideration of intemal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of NMTC, Inc. and subsidiaries as of December 31, 2009 and 2008, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2009 in conformity with U.S. generally accepted accounting principles. March 9,2010 1003-1137048 A rr.eir.li:r T ' l n c l ZtnV. 6 Yeuf.g C-'^L.^l Liniil.v.l NMTC, Inc. and Subsidiaries Consolidated Balance Sheets (In Thousands, except share data) December 31 2009 Assets Cash $ Accounts receivable, less allowance for doubtful accounts of $307 and $316 in 2009 and 2008, respectively Current portion of notes receivable, less allowance for credit losses of $53 and S48 in 2009 and 2008, respectively Current portion of purchase security agreements receivable, less allowance for credit losses of $1,071 and $1,066 in 2009 and 2008, respectively Inventories Prepaid expenses and other current assels Total current assets Intercompany advances, net Property, plant, and equipment, net Investment in related party Investment in Danaher Finance Company Notes receivable, less allowance for credit losses of S403 and $275 in 2009 and 2008, respectively Purchase security agreements receivable, less allowance for credit losses of $1,134 and $1,183 in 2009 and 2008, respectively Total Assets $ 592 2008 $ 295 19,606 20,912 3,382 3,207 68,437 8,644 2,512 103,173 70,507 11,552 1,118 107,591 234,467 5,892 1,560 77,500 202,454 6,084 1,573 77,500 25,744 18,236 72,501 520,837 $ 78,307 491.745 Liabilities and Stockholder's Equity Trade accounts payable Accrued expenses Deposits Taxes payable Current portion of deferred tax liability Total current liabilities 14,887 6,246 3,998 22,255 465 47,851 15,664 3,984 3,420 23,647 5,898 52,613 Long-term portion of deferred tax liability Total Liabilities 1,535 49,386 1,290 53,903 33,316 435,563 178 469,057 2,394 471,451 520,837 32,547 403,805 (14) 436,338 1,504 437,842 491,745 Common stock, SO.Ol par value; 1,000 shares authorized; 100 shares issued and outstanding Additional paid-in capital Retained eamings Accumulated other comprehensive income (loss) Total NMTC, Inc. and subsidiaries stockholder's equit>' Noncontrolling interest Total Stockholder's Equity Total Liabilities and Stockholder's Equity See accompanying notes. 1003-1137048 $ $ NMTC, Inc. and Subsidiaries Consolidated Statements of Eamings (In Thousands) Years Ended December 31 2009 2007 2008 Net sales Other revenues Total revenues S Cost of sales Selling, general and administrarive expenses Related party fees and expenses Total expenses Eamings before income taxes Income taxes Consolidated net eamings Less: Net eamings (loss) attributable to noncontrolling interest Net eamings of NMTC, Inc. See accompanying notes. 1003-1137048 $ 256,241 $ 31,342 287,583 278,738 32.309 311,047 128,398 41,697 43,579 213,674 142,277 42,542 37,031 221,850 152,482 45,471 42,800 240,753 49,715 17,067 32,648 65,733 24,700 41,033 70,294 25,562 44,732 (239) 41,272 S 7 44,725 235,481 27,908 263,389 890 31,758 $ $ N M T C , Inc. and Subsidiaries Consolidated Statements of Stockholder's (In Thousands) Equity NMTC, Inc. Stockholder Common Stock Balance at December 31, 2006 Net eamings Increase from translaiion of foreign financial statements Capital contribution from Danaher Corporation related to share-based payments Capital contribution of TvT^'ITC Holdings ULC to Joslyn KSULC Balance at December 31, 2007 Net eamings Decrease from translation of foreign financial statements Capital contribution from Danaher Corporation related to share-based payments Balance at December 31, 2008 Net earnings Increase from translation of foreign financial statements Capital contribution from Danaher Corporation related to share-based payments Balance at December 31, 2009 Additional PaidIn Capital Retained Earnings S S 31,189 317,801 44,732 Accumulated Other Comprehensive Income (Loss) Non-Controlling Interest 87 349,077 44,732 146 146 637 31.826 637 362,533 41,272 233 1,743 1,743 (239) (247) 721 32.547 403,805 31,758 (14) 435,563 178 1,743 396,335 41,033 (247) 1,504 890 721 437,842 32,648 192 192 769 33,316 Total 2,394 769 471.451 See accompanying notes. 1003-1137048 NMTC, Inc. and Subsidiaries Consolidated Statements of Cash Flows (In Thousands) Years Ended December 31 2008 2007 2009 Operating Activities Net eamings Adjustments to reconcile net eamings to net cash provided by operating activities Depreciation Share-based compensation expense Decrease (increase) in investment in related party Deferred income taxes Decrease in accounts receivable, net Decrease (increase) in notes receivable, net Decrease in inventories (Increase) decrease in prepaid expenses and other current assets Decrease in accounts payable Increase (decrease) in accrued expenses Increase (decrease) in deposits (Decrease) increase in taxes payable Net cash provided by operating activities S Investing activities Purchases of property, plant, and equipment Proceeds from sale of property, plant, and equipment Net cash used for investing activities 32,648 S 41,033 774 721 219 1,053 921 (985) 263 823 637 (49) 7 955 (9.977) 422 (1,394) (777) 2,262 578 (1,392) 32,723 166 (411) (3,731) (59) (553) 39,411 1.303 (2,047) (169) (462) 1.839 38.014 (605) (685) (252) (605) (685) 30 (222) (32,013) (32,013) (38,463) (38,463) (38,972) (38,972) Effect of exchange rate changes on cash 192 (247) Net increase (decrease) in cash Cash, beginning of year Cash, end of year 297 295 592 16 279 295 See accompanying notes. 1003-1137048 S 44,732 797 769 13 (5,188) 1,306 193 2,908 — Financing activities Advances to Parent, net Net cash used in financing activities Supplemental disclosures Cash state income tax payments, net of refunds $ 797 $ 898 146 (1,034) 1,313 279 $ 1,318 N M T C , Inc. and Subsidiaries Notes to Consolidated Financial Statements December 31,2009 1. Basis of Presentation NMTC, Inc. d/b/a Mateo Tools (the Company) is a wholly-owned subsidiary of Mateo Tools Corporation. Mateo Tools Corporation operates as an indirect wholly-ovmed subsidiary of Danaher Corporation (Danaher). NMTC, Inc. is a national manufacturer and distributor of high quality professional mechanic tools. During 2005, NMTC, Inc. organized wholly-owned subsidiaries NMTC Holdings ULC and NMTC Partners Inc. as entities in Canada to operate Mateo Tools Canada, formerly NMTC Canada, to do business in Canada as a distributor of high quality professional mechanic tools. On December 1, 2007, NMTC Holdings ULC, and its related ownership interest in Mateo Tools Canada, was merged into Joslyn NSULC, a wholly-owned subsidiary of Joslyn Holding Company, which is a wholly-owned indirect subsidiary of DH Holding Corporation. The investment in related part>' on the balance sheet relates to the merger and includes a note receivable from NMTC Holdings ULC and an investment in Joslyn NSULC. On December 1, 2009, Joslyn NSULC changed its name to AB Sciex ULC. The results of operations of Mateo Tools Canada are included in the financial statements of NMTC Inc., as NMTC Inc. maintains control of the daily operations of Mateo Tools Canada. 2. Summary of Significant Accounting Policies Revenue Recognition In order for sales to qualify for revenue recognition, there must be persuasive evidence of a sale, delivery must have occurred, the price to the customer must be fixed and determinable, and collectibility of the balance must be reasonably assured. The Company's standard terms are FOB Shipping Point and, as such, the Company principally recognizes revenue for product sales upon shipment. Product returns and customer allowances are estimated based on historical experience. The Company providesfinancingto certain of its customers. The sale of the underlying financed product is recorded as noted above. The note receivable for the outstanding customer balance is classified as a current and non-current asset based on terms, which range up to 120 months. Other Revenues Other revenues consist primarily of eamings from financial ser\'ices as the Company provides financing to certain of its customers. Interest bearing notes mature through 2019. Interest income is recorded as eamed and interest rates on these receivables range between 6.25% and 22.5%. 1003-1137048 N M T C , Inc. and subsidiaries Notes to Consolidated Financial Statements (continued) 2- Summary of Significant Accounting Policies (continued) Accounts Receivable, Notes Receivable and Allowance for Doubtful Accounts The Company's receivables consist of the following: • Accounts receivable - There are transactions within this balance relate to trade receivables duefromfranchisees and commercial customers. • A'Otes receivable - This consists of notes receivable from franchisees to fijnd their inifial investment. • Purchase security agreements receivable ~ This includes loans to the franchisees' customer network. Collateral for these receivables typically consists of the business assets of the customer. All receivables are carried at face value less an estimated allowance for doubtful accounts and credit losses. Risk of loss for expected future uncollectible receivables is substanfially covered under an insurance policy issued by Danaher Insurance Company. See Note 5 - Related-Party Transactions. The Company maintains an allowance for estimated losses not covered by its insurance policy resulfing from the inability of the franchisee, customers and franchisee customers to make required payments. The allowance is established and periodically revised based upon known bad debt risks and estimates of potential uncollectable accounts and notes receivable based upon past loss history, payment practices and economic conditions. Estimating losses is inherently uncertain because the amount of such losses depends substantially on the financial condition of the Company's customers, and the Company typically has limited visibility as to the specific financial state of its customers. If the financial condition of the Company's customers were to deteriorate beyond estimates, resulting in an impairment of their ability to make payments, the Company would be required to write off additional receivable balances, which would adversely impact the Company's net earnings andfinancialcondition. 1003-1137048 NMTC, Inc. and Subsidiaries Notes to Consolidated Financial Statements (continued) 2. Summary of Significant Accounting Policies (continued) Inventory Inventories are stated at the lower of cost or market value. The inventory valuafion methods used by the Company are as follows (in thousands): December 31 2009 2008 Last-in,first-out(LIFO) method First-in,first-out(FIFO) method S $ 5,147 3,497 8,644 $ $ 7,001 4,551 11,552 If the FIFO method had been used for inventories valued at LIFO cost, such inventories would have been $ 1.5 and $ 1.3 million higher at December 31, 2009 and 2008, respecfively. The major classes of inventory are summarized as follows (in thousands): December 31 2009 2008 Finished goods Work in process Raw materials S $ 8,232 28 384 8,644 $ $ 11,061 47 444 lh552 Intercompany Advances, net Intercompany Advances is the net non-interest bearing balance of all prior and current year transfers between NMTC, Inc. and Danaher and its affiliates. See Note 4 - Related Party Transactions for a discussion of these transacfions. 1003-1137048 NMTC, Inc. and Subsidiaries Notes to Consolidated Financial Statements (continued) 2. Summary of Significant Accounting Policies (continued) Property, Plant, and Equipment Property, plant, and equipment are carried at cost. The provision for depreciation has been computed by the straight-line half year method based on the following estimated usefiil lives: Building and improvements Machiner>% equipment and software costs 15-40 years 3-10 years The major classes of property, plant and equipment are summarized as follows (in thousands): December 31 2009 2008 Land and improvements Buildings Machinery, equipment and software costs Less accumulated depreciation Property, plant and equipment, net $ $ 860 $ 7,060 17,926 25,846 (19,954) 5,892 S 860 7,065 17,518 25,443 (19,359) 6,084 The costs of significant improvements are capitalized. Cost of normal repairs and maintenance are charged to expense as incurred. The carrying value of the Company's assets are reviewed when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined that an impairment loss has occurred based on current and future levels of income and expected future cash flows as well as other factors, an impairment loss w'ould be recognized in the Consolidated Statement of Eamings. The Company believes no such impairments existed at December 31, 2009 or December 31, 2008. Product Warranty Risk of loss for expected future product warranty expense is substantially covered under an insurance policy issued by Danaher Insurance Company. See Note 4 - Related-Part)' Transactions. 1003-1137048 N M T C , Inc. and Subsidiaries Notes to Consolidated Financial Statements (continued) 2. Summar>' of Significant Accounting Policies (continued) Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases these estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilifies that are not readily apparent from other sources. Actual results could differ from those estimates. Fair Value of Financial Instruments The Company's financial instruments consist primarily of cash, accounts receivable, notes receivable, and purchase security agreements. The Company believes that the carrj^ing value of the cash and accounts receivable approximate their fair value at December 31, 2009. The fair value of the notes receivable and purchase security agreements were $28.6 million and $143.4 million, respectively, as of December 31, 2009. Shipping and Handling Amounts billed to customers for shipping and handling costs are included as a component of sales. Cost incurred by the Company for shipping and handling are included as a component of cost of sales. In 2009, 2008 and 2007, the Company incurred shipping and handling charges of $9.3 milhon, $11.5 million, and $13.7 million, respectiveiy, that were recorded in "Costs of goods sold" on the accompanying Consolidated Statements of Eamings. Income Taxes Income taxes are accounted for using the liabilit>^ method. This method recognizes the taxes payable or refundable, for the current year, and the recording of deferred tax assets and liabilities for future tax consequences that have been recognized in the Company's financial statements. The measurement of current and deferred tax assets and liabilities is based on provisions of the enacted tax law. The effects of fuiure changes in tax laws or rates are not anticipated. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. 1003-1137048 10 NMTC, Inc. and Subsidiaries Notes to Consolidated Financial Statements (continued) 2. Summary of Significant Accounting Policies (continued) New Accounting Pronouncements In December 2007, the FASB issued SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements." This standard is included within the FASB Accounting Standards Codification at ASC 810 "Consolidation." The new requirements were adopted by the Company on January 1, 2009. The standard changes the accounting and reporting for noncontrolling interests (formerly minority interests) and requires the owTiership interests in subsidiaries held by parties other than the parent be clearly identified, labeled, and presented in the consolidated statement of fmancial position within equity, but separate from the parent's equity. It also requires that the amount of consolidated net income attributable to the parent and to the noncontrolling interest be clearly identified and presented on the face of the consolidated statement of earnings. See Note 1 for a discussion of the Company's controlling interest in Mateo Tools Canada. Subsequent Events The Company has evaluated subsequent events through March 9, 2010 for recording and disclosures in thesefinancialstatements. 3. Leases and Commitments The Company's operating leases, which consist of equipment and buildings, extend for vaiying periods of time up to five years and, in some cases, include renewal options. Future minimum rental payments for all operating leases having initial or remaining non-cancelable lease terms in excess of one year are as follows (in thousands): 2010 2011 2012 2013 S 586 518 491 325 Total rent expense for all operating leases was $0.6 million, S0.8 million and $0.9 million for the years ended December 31, 2009, 2008 and 2007, respectively. 1003-1137048 11 N M T C , Inc. and Subsidiaries Notes to Consolidated Financial Statements (continued) 4. Related-Party Transactions Related party fees and expenses are summarized as foUows (in thousands): December 31 2009 DBS and Management Fees, net Warranty Insurance Expense Credit Insurance Expense Accident and Health Insurance Expense Total related party fees and expenses S S 2,481 $ 22,811 15,125 3,162 43,579 $ 2008 743 $ 16,509 18.024 1,755 37,031 $ 2007 223 16,599 24,259 1,719 42,800 The Company maintains an investment representing a 2.54% ownership interest in Danaher Finance Company (DFC), another wholly-owned subsidiary of Danaher. The Company is a member of a cooperative (The Allen Manufacturing Company) administered by Danaher, which provides consulting and procurement services to the Company (DBS fees). The Company expenses costs incurred from the cooperative as incurred and records patronage dividends from the cooperative when they are declared. Total cooperative expenses were $7.1 million, $7.5 million, and $8.4 million for the years ended December 31, 2009, 2008, and 2007 respectively. Total patronage dividends recognized were $7.7 million, $8.5 million, and $8.1 million for the yeai'S ended December 31, 2009, 2008, and 2007 respecfively. The Company has purchased insurance policies from Danaher Insurance Company to cover its warranty, credit and accident and health risk. The Company purchased a policy, effecfive December 31, 1999, which covered the warranty on all products sold prior to Januaiy 1, 2000. The Company has purchased additional policies each year and, therefore, has insured all products sold through December 31, 2010. These policies include limitations on aggregate claims, but these limitations do not exceed management's estimates of expected claims. The Company purchased a policy, effective December 31, 2002, which covered its credit risk as of December 31, 2002. The Company has purchased additional policies each year and, therefore, has insured all credit risk incurred through December 31, 2010. Credh risk consists ofall trade and notes receivable including purchase security agreement receivables. These policies insure 95% of the Company's losses and include limitations on aggregate claims. The Company provides reser\'es for its esfimate of its self-insured risk and believes that management's estimate of the portfolio exposure does not exceed any limitations on its purchased coverage from Danaher. 1003-1137048 12 NMTC, Inc. and Subsidiaries Notes to Consolidated Financial Statements (continued) 4. Related-Party Transactions (continued) The Company purchased a policy, effecfive December 31, 2002, which covered its accident and health risk as of December 31, 2002. The Company has purchased additional policies each year and, therefore, has insured all accident and health risk incurred through December 31, 2010. Accident and health risk consists of all medical costs for the covered employee population. These policies include limitations on aggregate claims. The Company provides reserves for its estimate of its self-insured risk and limitations do not exceed management's estimates of exposure for its medical costs. Aggregate expense related to credit risk is as follows (in thousands): December 31 2009 Bad debt expense: Selling, general and administrative expense Related party fees and expense Total bad debt expense $ S 1,081 $ 15,125 16,206 $ 2008 1,433 $ 18,024 19,457 $ 2007 1,054 24,259 25,313 As needed, funds may be provided by Danaher for working capital requirements. The Company also receives centralized services from Danaher and its affiliates for general managemenl, treasuiy, benefits, insurances and other matters. As part of the Danaher cash management program, the Company deposits all excess domestic cash with Danaher and satisfies wwking capital needs through transfers from Danaher. The Company sells to and purchases from, other Danaher affiliate companies based on transfer pricing criteria established by Danaher. Affiliate sales were $0.4 million, S0.4 million and $0.6 million; and intercompany purchases were $8.3 million, $11.9 million and $14.2 million for the years ended December 31, 2009, 2008 and 2007, respecfively. 1003-1137048 13 N M T C , Inc. and Subsidiaries Notes to Consolidated Financial Statements (continued) 5. Retirement Plans Danaher has a non-contributory defined benefit pension plan, which covers certain employees and retirees of the Company. Benefit accruals under this plan have ceased for the Company's participants and, therefore, there is no service cost recognized for the Company's participants in this plan for the years ended December 31, 2009, 2008 and 2007. The accrued liability related to these benefits is maintained by Danaher. The Company participates in a 401(k) retirement savings plan sponsored and administered by Danaher. This plan provides for employer contributions based on a percentage of employee compensation. Total employer contributions to this plan related to the Company's participants amounted to $1.4 mifiion, $1.4 million and $1.7 million for the years ended December 31, 2009, 2008 and 2007, respectively. 6. Post Retirement Medical Benefits The Company provides post retirement medical benefits to six retirees and their dependents. The benefits have been disconfinued for all active employees. Ser\'ice cost is charged to the Company by Danaher and was $22,000, $22,000 and $25,000 for the years ended December 31, 2009, 2008 and 2007, respectively. The accrued liability related to the benefits is maintained by Danaher. 7. Share-Based Compensation The Company accounts for share-based compensation by measuring the cost of employee services received in exchange for all equit>' awards granted, including stock options and restricted stock units, based on the fair value of the award as of the grant date. Share-based compensation for the years ended December 31, 2009, 2008 and 2007 was calculated by Danaher at the consolidated level. Danaher estimated the fair value of the share-based payment awards granted using the Black-Scholes Merton opfion pricing model (Black-Scholes). The following summarizes the assumptions used in the Black-Scholes models for the years ended December 31, 2009, 2008 and 2007: Risk-free interest rate Weighted average volatility Dividend yield Expected years until exercise 1003-113704S 2009 Years Ended 2008 2007 2.08-3.68% 31% 0.2% 6-9.5 2.57-3.80% 27% 0.20% 6-9.5 3.68-4.77% 22% 0.1-0.2% 7.5-9.5 14 N M T C , Inc. and Subsidiaries Notes to Consolidated Financial Statements (continued) 7. Share^Based Compensation (continued) The Company has recorded stock-based compensation expense of $0.8 million. $0.7 million and $0.6 million, as well as a deemed capital contribution from Danaher in the same amount related to these share-based payments for the years ended December 31, 2009, 2008 and 2007, respectively. 8. Income Taxes The provision for income taxes consisted of the following (in thousands): 2009 Current Deferred Income tax provision S $ December 31 2008 22,255 $ (5,188) 17,067 $ 23,647 $ 1,053 24,700 $ 2007 25,555 7 25,562 The Company has entered into an agreement with Danaher whereby the Company transfers funds to Danaher sufficient to cover the Company's U.S. federal financial reporting income tax expense. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of net assets and liabilities for financial reporting purposes and the amounts for income tax purposes. 1003-1137043 15 NMTC, Inc. and Subsidiaries Notes to Consolidated Financial Statements (continued) 8. Income Taxes (continued) The components of deferred tax assets and liabilities were as follows at December 31 (in thousands): 2009 Deferred tax assets: Bad debt expense Inventor)' reserves Other Total deferred tax assets Deferred tax liabilities: Net property plant and equipment Patronage dividend receivable Insurance claims receivable Total deferred tax liabilities Net deferred tax liabilities $ 2008 1,092 $ 946 1,629 3,667 (1,535) - S (4,132) (5,667) (2,000) $ 960 142 564 1,666 (1,290) (3.149) (4,415) (8,854) (7,188) 9. Contingencies In the normal course of business, the Company is involved with various lawsuits and claims. Although it is not possible to predict the outcome of currently pending proceedings, it is management's opinion that the costs, losses and settlements of these proceedings are not expected to have a material adverse effect on the Company's financial condition. 1003-1137048 16 Ernst & Young LLP Assurance | Tax | Transactions | Advisory About Ernst & Young Ernst 8, Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 130,000 people are united by our shared values and an unv/avering commitment to quaiiiy. We make a difference by helping ouv people, our clients and our wider communities achieve potential. www.ey.com MATCO TOOLS FRANCHISE DISCLOSURE DOCUMENT APPEM)IX B: ACTIVE DISTRIBUTORS Malco FDD/PK s i^i^VftB-l — f'.'.30 0^23766.6 „ 3.-29/10 NHIC. Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State f o r 2009 r nu 1 / u 1 Page Date Run Date :12/31/09 State D i s t r i b u t o r Name AK AK AK AK AK UEGNER. JACOB R *RAY WEGN HURRILL. DONEL *KELLY* STEPHENS. JUDY RASEY. KRIS K BEARO. RON State Count: AL AL AL AL AL AL AL AL AL AL AL AL AL AL AL AL AL AR AR AR AR AR AR AR AR AR AR AR AR AR AR AR AR AR AR AR AR AR 2282 LARISSA DR PO BOX 72594 12450 ELMORE RD PO BOX 670430 2200 W 70TH AVENUE FAIRBANKS FAIRBANKS ANCHORAGE CHUGIAK ANCHORAGE 99712 99712 99516 99567 99502 907 907 907 907 907 460-5556 460-5555 3453452 688-0124 244-0024 13151 HILLCREST OR 10407 US HWY 31 #111 1222 SNOW HINTON DRIVE 705 HILTON RD 9339 WOODLAND DRIVE 170 CAMPBELL RD 301 KROY DR 145 COUNTY RD 460 3513 SANDY OAKS 6509 EAGLE RIDGE LANE 266 LEE RD 528 387 LEE ROAO 643 948 LEE RO 437 710 SHALL LAKE DR 126 HAPPY HOLLOW DR 166 PATTERSON LANE 202 LEE ROAD 537 ELBERTA SPANISH FORT TUSCALOOSA ANNISTON ELBERTA HUNFORD HONTGQMERY KILLEN SARALAND PINSON PHENIX CITY SALEM PHEHIX CITY OOENVILLE UNION SPRINGS MERIDIANVILLE SALEH 36530 36527 35405 36207 36530 3626836117 35645 36571 35126 36867 36874 36870 35120 36089 35759-1102 36874 251 770 205 256 251 256 334 256 251 205 334 334 334 205 334 256 334 986 -5819 831 -5433 349 -4497 343 -4334 979 -0275 358 -9469 546 -5646 856 -3066 753 •0517 6809218 2984178 291 •0491 297 •1387 960 -5195 738 •2051 698 -3189 291 -0267 9618 PERRY RD 913 N 3RD 622 HWY 95 E 99 WATERLANE 3817 GLENHERE 176 MARY WEISS LANE 1006 NORTH MAPLE 1 BARRHEAD LANE 244 MUSIC LANE 203 N 31ST STREET 210 DAWN DR 45 BUCKINGHAM OR 2 WIGTOWN LANE 1601 CLAUD ROAD 2689 GREENE 737 RD 1604 S 44TH ST 296 CR 2760 18481 TAMIKA LANE 224 KASSMAN DR 40 CHIMNEY RD 625 OAKWOOD ST BAUXITE AUGUSTA CLINTON CONCORD NO LITTLE ROCK MENA STUTTGART BELLA VISTA DOVER OZARK CENTERTON BELLA VISTA BELLA VISTA PINE BLUFF PARAGOULD FORT SMITH LAMAR GRAVETTE HOT SPRINGS BATESVILLE LOWELL 72011 72006 72031 72523 72116 71953 72160 72715 72837 72949 72719 72714 72715 71602 72450 72903 72846 72736 71913 72501 72745 501 870 501 870 501 479 870 479 479 479 479 479 479 870 870 479 479 479 501 870 479 776 347 253 307 305 234 674 619 880 213 531 295 644 247 930 573 885 787 620 793 571 17 HODGE. TIMOTHY J RUSSENBERGER. JOSHUA J FREEMAN. BRENT W TATE. JAMEY L DAVIS. JOHN H WELLS. MALCOLM *M. RYAN W WISE. JIMMIE DEAN REINKING. RANDY *SHAWN RE CASEY. JASON S GALL. ALLAN L RICHARDSON. RICHARD T GRUNST. TIMOTHY G CHUNN. PAUL S JONES. RICHARD E CHRISTMAS. ERNIE T RATHBURH. KENNETH L JOHNSON. WALTON W COOK. RILEY *BUD* BRYANT. DAVID CLARK, BILLY J PETERSON, TODD A State Count: City 5 SWEPPENHISER. NATHANIEL J DUPLANTIER. RAY J COMPTQN. WINFRED •GARY* WILLIAMS. JOSEPH *MIKE* COX. BARRY W FRANKLIN. PHILLIP H HUGHES. JOHN L MASONIA. CHARLES E *CHUCK FINCHER. JAMES M •HARK* RAWLING5. DANNY RAGSDALE. MARCUS DAVIS. IRA CLARK. TIMOTHY 3 HAYES. MARK A SALTER. WILLIAM W rOLAND. MARK E FRYER. KEVIN L State Count: Area Phone Zip Code Code Number Address 21 8528 6188 1476 4379 3749 2405 7185 8987 6543 0223 4533 9893 6043 5070 6933 0198 0809 7361 0860 2025 1163 1 1/07/2010 NMTC. Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State for 2009 f flU 1 / u i Page Date Run Date :12/31/09 State D i s t r i b u t o r Name AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ BEAUCHAMP. KENT D WASHBURN. R PHILIP JEPSON. JERROLD G *JERRY* SCHMIDT. STUART G MERRICK, BRIAN H MARSDEN. STEPHEN M SOPHER, EDWARD A FERRELL. DAVID A GOMEZ, ARMANDO N PASTORELLO. GARY L HIMMELFARB. DYLAN H *MAX* FREEMAN. RICHARD A GRANRATH. AUGUST P OREWES. WILLIAM J WOOD. CRAIG A SMITH, DARRELl. R THOMASON. DARIN H MAY. MICHAEL A GATTIS. MICHAEL W TAYLOR. KEVIN G QUEEN. DONALD *JUNIOR* G DAVIS. AARON H PENCE. PAUL C BOOTH. SEAN R ROBBINS. CHARLES G RYAN. LAWRENCE D E5TERK1N. THOMAS CLONTS. CARY PARK. ELLIOT KVILVANG, JAY POCHOS. ZEITA E *ROB* GARCIA. JASON S HONGO. KEVIN HARAWAY. ALLEN SCALLON. JOHN R BAKER. HICHELE *OOUG WARR SEARS. DAVID L BILLUPS. JACK A VANGORDON. DAVID W HCGRAW. TIMOTHY A QUOZIENTE. ALPHONSO N State Count: CA CA CA CA CA CA Area Phone Zip Code Code Number Address City 8126 W MARYLAND AVE 19075 N SAN PABLO ST 6560 W ABRAHAM LANE 2608 W IRVINE RD 2751 N 103RD AVE 22322 N 82ND LANE 3317 E BELL RD STE 101-43 6604 W PORT ROYALE LANE 165 CAMINO OCEANO PO BOX 228 2233 W ANGEL WAY 435 EAST LEKI RO 10321 W SUPERIOR AVE 7009 W COLUMBINE 10129 E PASEO SAN BRUNO 5222 W EL CORTEZ TRAIL 8624 VI KELIHOA LANE 4543 E GELDING DR 16181 W YOUNG ST 6308 N 86 ST 1880 W HORSESHOE BENO 755 E CALLE MAYER 13813 S BEE BONNET CT 1677 W DESERT LANE 5615 N 48TH LANE 1601 E HIGHLAND AVE #1111 1042 WILLOW CREEK RD SUI 9811 N CALLE SOLANO 7935 W EMORY LANE 2830 N LLOYD BUSH DR PO BOX 46 2110 E FLINTLOCK WAY 1120 EAST CIRCLE HT RD 3839 EAST BARANCA RD 1500 E PUSCH WILDNESS DR 5541 W CAMINO VIVAZ LANE 6395 E 45TH PLACE 1568 £ CASSIA CT 8425 W SHAW BUTTE DR 2722 E LYNWOOD ST 9916 E GLENCOVE CIRCLE GLENDALE MARICOPA GLENDALE PHOENIX AVONDALE PEORIA PHOENIX GLENDALE RIO RICO BLACK CANYON CI SAN TAN VALLEY MESA TOLLESON PEORIA TUCSON PHOENIX PEORIA PHOENIX SURPRISE SCOTTSDALE CAMP VERDE N0GALE5 VAIL GILBERT GLENDALE PHOENIX PRESCOTT TUCSON PEORIA TUCSON CAVE CREEK CHANDLER NEW RIVER GILBERT ORO VALLEY GLENDALE YUMA GILBERT PEORIA MESA MESA 85303 85238 85308 85086 85392 85383 85032 85306 85648 85324 85142 85203 85353 85381 85747 85083 85382 85032 85374 85250 86322 85621 85641 85233 85301 85016 86301 85737 B5382 85745 85327 85249 85087 85297 85737 85310 85365 85296 85345 85213 85207 623 480 623 623 602 623 480 602 520 623 480 480 602 623 520 602 602 602 523 602 928 520 520 *N0 602 602 928 520 480 520 602 480 623 480 520 623 480 480 623 480 480 872 8867 206 8613 824 5209 202 4803 741 1732 825 9939 444 2191 796 0132 619 1296 680 1483 586 0627 254 2290 510 3172 412 3700 975 6131 820 2467 791 4690 339 6576 332 5544 579 1213 592 3771 223 7626 991 8350 PHONE 291 3525 810 2329 830 4542 742 1374 529 4421 682 6550 803 7777 219 6558 915 0835 507 7583 742 6909 581 8727 839 4031 272 7054 334 4284 610 0660 734 5216 4551 OAK GLEN DR D 2010 RIPLEY AVENUE 2334 YOSEMITE AVENUE 1515 2HD ST 303 S HESTHIND DRIVE 3042 W LYNROSE DRIVE SANTA BARBARA REDONDO BEACH SIHI VALLEY SANGER EL CAJON ANAHEIM 93110 90278 93063 93657 92020 92804 805 310 805 559 619 714 570-5008 379-3802 587-2585 292-1657 588-2479 229^0656 41 BARNES. JAMES 0 HASHOLIAN. YEGHIA *GARY* YOA. KAUAI K GOLDEN. CHRIS 0 THOMPSON. ROBERT E GOODNESS. JOSEPH K 1/07/2010 NMTC. Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State for 2009 rnu i/u i Page Date Run Date : 12/31/09 State D i s t r i b u t o r Name CA LEWIS. TY D CA LAUGHNER, GLENN F CA BROOKS, JASON G CA WOOD. CONRAD B CA APA. JOSEPH T JR CA JIMENEZ, PAUL JR CA JOHNSON. MARK A CA SCHNOOR. JAMES C CA MUNOZ. IGNACIO CA ROCKWOOD. MICHAEL G CA ENRIGHT, ROY CA BOUSQUET. SETH I CA CHOUNARD. MICHAEL L CA LUND. DENNIS H CA STEAD. MICHAEL C CA SMITH. JEFFREY K CA BRUBAKER, JAY T CA FUNK. CLYDE E CA LOUGHRIDGE. NICHOLAS C CA SMITH. KAI J CA WHITNEY, SHAWN CA YENAWIHE. CURTIS L CA RODRIGUEZ. RAUL CA GOULD. MONROE S CA MACIAS. RODOLFO CA UNGER, JAY R CA PETERSON. BRIAN 0 CA ENGELBRECHT. ERIC A CA MINSER. HARK W CA MAHHOUDI. ALI CA LINERO. DION CA KACEREK, TIMOTHY R CA CHATER. ANDREW D CA HERNANDEZ. JUAN P CA KALAITZIAN. ARSEN H CA • MORALES, LARRY J CA OURNING. BRENT CA SINGH. PARVEEN CA MICHAELS. ALAN 6 CA ALIOTTI. DAVID CA ARMSTRONG. GARY T CA COURTNEY. MARK L & KEVIN CA LARIOS. JAIME CA DYAR. DARYN L CA PERRY , JACK G CA BRIL. BURT CA RICH. CHRISTOPHER D CA HUTTON. KERRY A CA SNYDER, WILLIAM L *BILL* CA THREAOGILL. RANDY L JR Address City 1599 15TH STREET 81239 COCO PALM 3668 LIBERTY ROAD 2523 HCKINLEYVILLE AVE 3489 WHIRLAWAY LANE 1144 DIX STREET 17526 PARKER RO 3902 EAST PALMYRA AVE 14294 W SHERI ST 24041 LIHB STREET 11716 EASTFIELD ROAD 22588 S COLORADO RIVER OR 1236 ALDERNEY COURT 780 KIMBALL STREET 5265 SANDHOUND BLVD 11301 0 RO 248 2286 JONESBORO AVE 17032 DELIA AVE 21 EAST JANSS ROAD 8567 NEW WINDSOR ST PO BOX 68 130 STEPHANIE LANE 21308 LOSTINE AVE 4487 STONE CANYON CT 10527 KEWEN AVE 8874 ROSSINI COURT 6182 KI5ER DR 2224 5TH AVE 1064 SUNSET DR 2019 HAVEMEYER LANE UNIT 3415 GAUNTLET OR 7331 E BREMER 3410 EAGLEPOINT DR 701 PERU AVE 2469 MESA TERRACE 802 SKYLER WAY 1377 MERSEY AVE 1805 HILL AVE 12611 AUTUMN OAKS 927 HELLAM ST 9551 SAILFISH DR 702 N FERN ST 12336 ORIZABA AVE 2466 BEACH ST 2923 REMINGTON WAY 3179 MELODY LANE 30870 AVENIDA DEL PADRE 25355 JOYCE PL 722 W BERKELEY CT 4203 E TUOLUMNE RD OCEANO INOIO GALT HCKINLEYVILLE CHINO HILLS SAN MATEO CASTRO VALLEY ORANGE KERHAN MISSION VIEJO POWAY SONORA OCEANSIDE ESCONDIDO OAKLEY PORTERVILLE SIHI VALLEY TORRANCE THOUSAND OAKS RIVERSIDE SHINGLE SPRINGS CRESCENT CITY CARSON CONCORD PACOIMA RIVERSIDE HUNTINGTON BEAC SAN RAFAEL LIVERMORE REOONOO BEACH WEST COVINA FRESNO GLENDALE SAN FRANCISCO UPLAND BREA SAN LEANDRO HAYWARD REDDING MONTEREY HUNTINGTON BEAC ORANGE DOWNEY OCEANO SAN JOSE SIHI VALLEY CATHEDRAL CITY STEVENSON RANCH ONTARIO DENAIR Area Phone Zip Code Code Number 93445 92201 95632 95519 91709 94401 94546 92869 93630 92691 92064 95370 92054 92027 94561 93257 93063 90504 91360 92508 95682 95531 90745 94521 91331 92503 92647 94901 94551 90278 91792 93727 91208 94112 91784 92821 94579 94541 96003 93940 92646 92867 90242 93445 95148 93063 92234 91381 91762 96316 805 760 209 707 909 650 510 714 559 949 858 209 760 760 925 661 818 310 805 951 530 707 310 925 818 951 714 415 925 310 626 559 818 510 909 562 510 510 530 831 714 714 562 805 408 805 760 661 909 209 474 485 712 839 573 578 912 997 346 453 829 352 803 583 813 889 298 347 796 640 409 218 346 451 269 768 397 713 337 944 926 761 669 432 322 706 303 209 917 658 394 925 896 440 605 331 835 645 843 769 4230 2017 0606 8458 7106 1371 1583 3881 9417 1933 7219 6228 8378 8861 8519 1426 8011 7390 7323 4364 9728 4450 4090 5003 3612 7675 5028 5604 2264 4876 1120 3888 1666 1655 5272 8009 9286 6995 0788 0356 6143 1590 2604 3351 2908 1513 1962 7800 5793 4078 1/07/2010 NMTC. Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State for 2009 rnu L/u I Page Date Run Date : 12/31/09 Area Phone tate D i s t r i b u t o r Name CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA SAFRENO. RICHARD R MEGLASSON. JAMES P JR *PA GARCIA. PEDRO *PETE* NORTON. VALERIE B SMITH. STEVEN D rLORES, JAIHE A DUFF. JOHN H ROBLES. JESUS A COUVILLION. MARC P ROONEY. ROBERT L SIKORSKI. SCOTT R SCHEINER. JASON *WARREN H HACKEY. ROBERT J ZUCKERMAN. GARY S TONGE . WALLACE H HAMMITT, ANDREW K BROOKS. GENE G ALLEN. SHANE T *JASON SCH HOLMES. BARREL SPRAGGS. DONALD D CHAMBERS. ROBERT P KE5LER. RONALD HURRAY. THOMAS 0URCHETT. RECIEL *ROY* OUROCHER, DEWANE HALZLE, MICHAEL INIGUEZ, JOSE HUNNICUTT. TOMMY FULTON. BRIAN RAMIREZ. RUDOLPH GAVLICK. WILLIAM H ARNOLD. WILLIAM CHANDLER. JEFFERY ENGEL, RONALD CARR. BRANDON MOHAN. JOE M AGRE. LARRY STRAGER. ALAN J SHELDON. JEFF ANAGNOSTON, GREGORY ROTHENBERG. ZVI JACKA. RICHARD GREENE. PERRY B HALTER, JAHES *BOB* OCCHIPINTI. FRANK HALTER. HIKE ROESNER. KENNETH COULTER. RALPH BURGESS. DAVE LEPPANEN. TERRY Address City 7224 CIRCLE DR 5711 MADRA AVE 1260 NICOLA DR 578 EMPIRE ST 112 MORROW CT 5879 SCHUYLER ST 18306 CALVERT ST 1069 E 20TH ST 2 CONDOR CT 25458 LACEBARK DR 1007 PARKHILL LANE 9522 FAIRBANKS 4827 LOMINA AVENUE 4165 VIA CANDIDIZ UNIT 30 3100 CLEAR LAKE DR 30813 HARNE DR 3668 LIBERTY RD 3879 STONERIDGE RO 2243 HIDDLETOWN DR 44264 COMPIEGNE DR 5222 W LARK CT 2413 DUNAWAY DR PO BOX 293134 PH 916-425 1724 RED WILLOW ROAD 2322 KLUNE COURT 1224 SHADY MILL RD 4036 AGATE 14944 ANOLA 1401 VIA LIMA 1428 FLINTWOOD COURT PO BOX 339 1812 STERLING PLACE 12737 LOS COCHES COURT 22395 RIPPLING BROOK 349 SKY VISTA WAY 634 NORTH CARLETON 1100 FALLBROOK 1464 BLACKSTOCK 1761 CALGARY DRIVE 100 MARGUERITE DR 3159 QUEENSBURY DRIVE 108 CHALK CREEK COURT 35236 LAKE BLVD 3763 ANDREWS COURT 65 ORtSKANY DR 9055 MAC LANE 1272 VINA DEL MAR 3675 CHARTER HALL COURT 10505 R8 4945 ST THOMAS DRIVE ROHNERT PARK SAN DIEGO RIVERSIDE SAN LORENZO SAN JOSE SAN DIEGO RESEDA LONG BEACH AMERICAN CANYON HURRIETA ESCONDIDO SAN DIEGO LAKEWOOD SAN DIEGO CHICO RANCHO PALOS VE GALT CARLSBAD CAMPBELL HEMET VISALIA SANTA ROSA SACRAMENTO FULLERTON SANTA CLARA CORONA RIVERSIDE WHITTIER FALLBROOK MARTINEZ SAN JUAN BAUTIS LIVERMORE LAKESIDE LAKE FOREST FALLBROOK ANAHEIM REDLANDS SIMI VALLEY SUNNYVALE HOLLISTER LOS ANGELES MARTINEZ NEWARK SAN DIEGO SAN MATEO SPRING VALLEY PLACENTIA SAN JOSE LUTLEROCK FAIR OAKS Code Code Number 94928 92120 92506 94580 95139 92139 91335 90806 94503 92563 92025 92123 90713 92130 95973 90275 95632 92010 95008 92544 93291 95403 95829 3134 92833 1434 95054 92882 5838 92509 90604 92028 94553 95045 94550 92040 92630 92028 92801 92373 93063 94087 95023 90064 94553 94560 92154 94402 91977 92870 95136 93543 95628 707 619 951 510 408 619 818 562 707 951 760 619 909 858 530 310 209 619 408 951 559 707 916 714 408 951 951 213 949 925 831 925 619 714 949 714 909 805 408 831 310 925 510 619 650 619 714 408 661 916 486 5428 838 6676 897 1243 414 2621 209 7245 840 8489 381 3312 310 1505 228 9361 595 5482 270 8672 279 6540 455 6282 829 9912 570 8664 977 8767 747 4596 279 6540 379 9017 212 6512 303 -2387 527 -5282 425 -1579 871 -9106 247 0309 735 9118 640 •2006 941 -8034 2303949 2284050 6234885 960 -9225 561 -5128 335 •1567 422 • 5355 490 -1225 792 •9278 584 •1033 749 •1685 635 • 0208 836 -1149 930 •7312 7909437 690 -5929 349 -9344 690 -5929 572 - 2558 265 • 7245 944 -5930 966 -8262 1/07/2010 NMTC, Inc. d/b/a Mateo Tools Active Distributors By State for 2009 rnu1/u1 Run Date :12/31/09 State Di s t r i butor Name CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA SHATLEY. JERRY FOLIA. BRIAN SHAFFER. DANIEL L HICKS. DALE A TARBELL. TIMOTHY D BRISKY. DAVID CISNEROS, JERRY SHIELDS, LARRY D SOOK. DAVIO KING. ROGER 0 MEEK. DOUGLAS A SIHONI, STUART 0 OEVORE. GREGORY CARLSON. THOMAS R GONZALES. DAVIO DELGADO. PETER JR DEVORE. DANIEL *MARK* CALTABIANO, STEVE JACOBSON, MARK TOMS. MARK HOUCK. JOHN L L I L L U . BRIAN R JARON, ROWIE E ANTOINE. SEAN PETERSON, JON L MILES. KENNETH G TURRIETTA, RICHARD P LEDBETTER, JAHES C HOMMEL, FREDRICK M WATTERS. TERRY 0 RABIEE, MOHSEN DIETTINGER, GARY L KUNKEL. ROBERT A SR RUSSELL. STEVE E HASSANI. FRANK TABUSA, JAHES M SHEPHERD, LEE C WALTERS. PERRY L VASQUEZ. DAHUL RODRIGUEZ, ROBERT M MARTINEZ. ALLEN A BOYADJIAN, HAIG L MADRIGAL. RANDY L AYALA. JESSE WATSON. KENNETH L TORRES. STEVE W TOTH. TIBOR A GONZALES. ROBERT JR CAROOZA. DAVIO L SIMONE. MATT P Address City 3300 BURNSIDE AVENUE 2620 DUOMO ST 13811 CHRISTIAN BARRETT 13668 JORDAN CT PO BOX 720890 9742 CLEARBROOK DR 7416 4TH PLACE 8742 BUENA VALLEY DR 1053 ARKELL 22515 KENT AVE 4750 RUSTIC OAK WAY 960 KERN COURT 6696 LASSITTER RO 20737 SOLEOAD CANYON RD 6342 HILLTOP DR 1627 S SPRUCE ST 44194 GALLIPOLI PL 5010 ASHLAND DR 24736 MERIDIAN DR 1528 VISTA VEREDA 23391 VIA GAUDIX 1445 CADWELL CT 802 HILLER ST 235 HARIANELA LANE 28401 LOS ALISOS BLVD #61 5001 TASMAN DR 8977 SILVER COURT 3866 ROCKY POINT WAY 15308 ELMBROOK DR 332 N SUNSET WAY 653 CALLE SEQUOIA 6032 TURQUOISE DR 1224 PUTNAM ST 2124 GILL DR 6805 INDIANA AVE 2045 SPY GLASS DR 2001 RIDGE RD 175 DISTRICT CENTER DR 239 ZURICH AVE 121 MATTHEW CT 1906 SHURTLEFF AVE 112 1/2 E FREMONT SQUARE 1914 ARDEN DR 2816 CARLSBAD ST 5673 CRESENT AVE 461 ZAYANTE SCHOOL RD 3584 SPANISH GATE DR 9405 TOTEM AVE 14769 ALBA WAY 1537 N ADLER MODESTO PALHOALE MOORPARK RANCHO CUCAMONG PINON HILLS HUNTINGTON BEAC DOWNEY SANTEE WALNUT CREEK TORRANCE CARMICHAEL LIVERMORE RIVERSIDE CANYON COUNTRY CARMICHAEL SANTA ANA HEMET CAMERON PARK DANA POINT EL CAJON MISSION VIEJO RIVERSIDE BELMONT LOS OSOS MISSION VIEJO HUNTINGTON BEAC SANTEE SANTA ROSA LA MIRADA PALM SPRINGS THOUSAND OAKS ROCKLIN ANTIOCH CONCORD LONG BEACH SAN BRUNO UKIAH OROVILLE WATSONVILLE GALT NAPA MONTEBELLO FRESNO REDONDO BEACH BUENA PARK FELTON NEWBURY PARK BAKERSFIELD MORENO VALLEY FRESNO Page Date Area Phone Zip Code Code Number 95354 93550 93021 91739 92372 92646 90241 92071 94598 90505 95608 94551 92509 91351 95608 92704 92544 95682 92629 92019 92691 92506 94002 93402 92692 92649 92071 95404 90638 92262 91360 95677 94509 94520 90805 94066 95482 95966 95076 95632 94559 90640 93703 90278 90620 95018 91320 93312 92553 93727 209 661 805 951 760 714 562 619 925 310 916 925 951 661 916 714 951 530 714 619 949 909 415 805 714 714 619 707 714 760 805 916 925 925 562 650 707 530 831 916 707 323 559 310 714 831 805 661 951 559 576 478 517 899 868 968 776 334 687 378 965 373 681 916 747 432 415 676 478 590 768 276 302 534 313 420 448 544 521 641 376 276 755 689 883 355 467 628 722 869 337 724 264 219 621 335 376 587 242 456 7336 4391 1519 6255 6017 5463 1013 6045 0980 1555 1310 9329 8710 1561 6342 6130 9054 7264 5414 0373 6156 1933 4357 9368 4593 3035 2852 4848 3763 8655 2167 1176 0373 6267 3022 4204 1314 2442 2374 6883 3241 9644 1854 0640 7428 3992 0556 0348 5055 0549 1/07/2010 NMii;. i n c . d/b/a Mateo Tools Active D i s t r i b u t o r s By State for 2009 r nu1f u 1 Page Date Run Date :12/31/09 State D i s t r i b u t o r Name CA CA CA CA CA CA CA CA CA BAKER, JAHES G MEYER. CHARLES B ROUNDS. ROBERT D *DAVE* BRADLEY. SCOTT A GRIFFITH. THOMAS J SHIELDS. YAMEL I SATTERFIELD. JAMES R CLARK. BRYAN H BECKEK. ROBERT J State Count: CO CO CO CO CD CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CT CT CT CT City 1447 CAMBRIDGE AVE 813 CHARDONNY CIRCLE 40521 CLEAR LIGHT RO 1623 O'NEEL DR 26411 ROBIN ST 8742 BUENA VALLEY DR 6966 RIVERTRAILS DR 1824 SESSLER PL 2091 ROSEDALE DR REDLANDS PETALUMA TEMECULA PETALUMA ESPARTO SANTEE MIRA LOHA YUBA CITY SAN PABLO 92374 94954 92591 94954 95627 92071 91752 95993 94806 909 707 951 707 530 619 714 530 610 794 -6337 769 •7818 218 •3298 338 •0399 681 - 5775 334 -6045 323 -8163 635 •2515 724 •2659 STRASBURG COLORADO SPRING GRAND JUNCTION ARVADA THORNTON LITTLETON ALAMOSA COLORADO SPRING MONTROSE GREELEY MONUMENT GRAND JUNCTION LONGMONT BRIGHTON PEYTON BAILEY BROOMFIELD CANON CITY WINDSOR AURORA COLORADO SPRING PUEBLO WEST DURANGO PEYTON LITTLETON LARKSPUR ARVADA LAFAYETTE LAKEWOOD RIFLE BAYFIELD 80136 80922 81505 80003 80233 80128 81101 80911 81401 80631 80132 81505 80501 80601 80831 80421 80021 81212 80550 80015 80933 81007 81303 80831 80122 80118 80002 80026 80215 81650 81122 303 719 970 303 303 720 719 719 970 970 719 *N0 303 303 720 303 720 719 970 702 719 719 970 719 720 303 303 720 720 970 970 621^6830 330-2409 683-8682 880-1666 974-8982 364-7856 560-3546 650-5317 596-5983 215-6787 447-7866 PHONE*** 746-8650 909^2271 939-7818 653-7411 323-6109 568^3145 310^1782 937-8215 331-0867 647-9871 375-6219 573-6980 528-8776 681-2201 423-2567 890-4670 530^350Q 625^1912 684^3251 COLCHESTER NORTH HAVEN CLINTON MILFORD 06415 06473 06413 06460 860 203 860 203 267-0887 239-7797 664-4340 876-0454 165 11500 VICKIVIEW DAODERIO. GEORGE 0 5246 WEAVER DRIVE RAINS. NATHAN E 679 TAHOE CIRCLE ROBERTS. DONALD R 6451 W 74TH AVE MCDANIEL. LARRY G 2708 E 118TH CIRCLE SILLATO. ALAN R 7776 S FENTON ST SADLER. CHRISTOPHER C . 8346 COOL SUNSHINE CIRCLE LEE. MICHAEL D 5255 WILHELM DR HUFF. GARY P 1710 KENT AVE JASPERSON, KREG T 294 34TH AVE CUTSHAW, BRIAN R COWGER. BRAD H *ISAAC COW 2890 ROBERTS DRIVE 680 TAHOE CIRCLE CARTER. COREY R 1520 DONOVAN PL UNREIN. MICHAEL D 252 MESA ST RICHARDS, MARK S 18690 SAGE CREST RD JACKSON. DONALD A 617 IMPALA TRAIL SOLKO. DEBRA M 9156 W 102ND PLACE BACKSTROM. LEE N 319 BELLOWS COURT GETZ. KENNETH D 118 ROCKBRIDGE CT SHIGLEY. TOBY B 23201 E ORCHARD PL MEJIA, CARLOS P 0 BOX 8267 LIKNESS. GREGORY 155 SOUTH SNEAD DRIVE COLE, WILLIAM EUGENE 122 BRICE PLACE LAMOBEAUX. JOHN S 5780 OIL BARON DRIVE GERHARDT. PAUL 7120 S KNOLLS WAY LOVINGGOOD. DAVIO 8155 EAGLE RD VANSICKLE. JEFF D 5398 ELDRIDGE ST EMANUEL. PATRICK 2452 CANA CT BECK. KIRK N 12505 W 29TH PL KULLHAN. TIM A PO BOX 231 HUNTER. PAUL R 179 SPRING LANE SANDERS. TODD W State Count: LANGDON. JAMES C ZERANSKI. WALTER HARGREAVES. JEFFREY H WHEATON. LESLIE Area Phone Zip Code Code Number Address 31 225 LAKEVIEW DR 11 EVA CIRCLE 3 JOSHUA LANE 83 CEDAR HILL ROAD 1/07/2010 NMTC. Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State f o r 2009 rnu i / u I Page Date Run Date :12/31/09 State D i s t r i b u t o r Nane CT CT CT CT CT CT CT CT CT CT CT CT CT SEBAS. CHRISTOPHER MARCANO. WILLIAM C GRATEROL. ISRAEL A HEHBY. MATHEW W *BILL* HOLITANO. HARK P ABUOO. JOSE A SIMPSON. ROBERT *BOB* PERSICHILLI. ANTHONY RIOUX. RICHARD DASILVA. ANTONIO NIELSON. HARRY CUTTER. CHRISTOPHER COX, MICHAEL W State Count: OE FL FL FL Fl FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL City 7 NORTH RD 168 LAKE SHORE DR 70 HILLBROOK RD 3 JEFFERSON ST 483 CHARLES ST 76 SCOTT OR 51 PEPPERMINT LANE 3 RIDGE RD SNUG HARBOR 8 STEPHEN COURT 164 BAILEY ROAD 5 HOWARD STREET 22 OXFORD DR 156 WEST ROCKS RD EAST GRANBY NEW HARTFORD HERIOEN SEYHOUR TORRINGTON MANCHESTER BRISTOL DANBURY PROSPECT ROCKY HILL SIMSBURY ENFIELD NORWALK 06026 06057 06450 06483 06790 06042 06010-2275 06811 06712 06067 06070 06082 06851 860 860 860 203 860 860 860 203 203 660 860 860 203 434 BOXWOOD LANE HIDDLETOWN 19709 302 3766037 5640 MYAKKA VALLEY TRAIL 5730 NW 48TH AVENUE 229 SOUTHEAST 3RD AVE 1009 FOSTERS HILL ROAO 683 CHARLES PINKNEY STREE 17428 68TH STREET N 305 CHIPEWAY AVENUE 3029 KILLEARN POINTE CT 2106 WEST GARDENIA CR 11603 BROWNING ROAD 6704 CHANT TRAIL 20 EAST 62ND STREET 24105 E CR 1474 4531 ALVAHAR TRAIL PO BOX 5 9800 NE 5 AVE RD 4882 DEEDER CT 4043 SONNET DR 16471 BLATT BLVD 460 SPRING FOREST RD 352 MAHAGONY 5384 CUSTER ST 421 E 7TH STREET 1204 BLI5SW00D DR 4080 SONG DR 45 N WALTER COURT 8002 SW 149 ST APT B410 1157 SE 32ND TERRACE 7211 SW 5TH STREET 11400 AXIS DEER LANE SARASOTA COCONUT CREEK POMPANO BEACH BOYNTON BEACH ORANGE PARK LOXAHATCHEE DAYTONA BEACH TALLAHASSEE NORTH FORT MYER LITHIA TALLAHASSEE HIALEAH HAWTHORNE LAKELAND COPELAND MIAMI SHORES JACKSONVILLE TALLAHASSEE WESTON NEW SMYRNA BEAC KEY LARGO KEYSTONE HEIGHT JACKSONVILLE BRANDON COCOA MERRITT ISLAND MIAMI CAPE CORAL N LAUDERDALE FORT MYERS 34241 33073 33060 33436 32073 33470 32118 32312 33917 33547 32309 33013 32640 33801 34137 33138 32258 32303 33326 32168 33037 32656 32206 33511 32927 32952 33193 33904 33068 33966 941 954 561 561 904 561 386 850 239 813 850 786 352 863 239 305 904 850 305 386 305 352 904 813 407 321 786 239 954 239 862-2327 309-3163 883-5558 994-1974 465-5327 573-4462 589-4785 748-5272 758-3839 5631964 6518023 7450124 846-8040 17 CONNOR, DANIEL State Count: Area Phone Zip Code Code Number Address 1 DALCONZO, JOE CRONK, CRAIG TORRES. HUGO 0 DELAROSA. RICHARD R DAWSON. STEVEN N MIZRAHI . MITCHELL W STAPINSKI, DAVID J CLOWER. CHARLES *MATT EHP GATEWOOD. MICHAEL L ALLEN. DONALD L JUNEAU. STEVE R HERRERA, JOSE R HAMLOW. STEVEN N YDCUM. ELDON D PACE, GLENN 0 SALAZAR, JOSE E BELLEROSE, MATTHEW J KIGHT. JIMMY L LUCERO RAMOS. NOE SADLER, THOMAS S *STEVE* NAPOLITANO. KENNETH D WILLIAMS, JACOB J COSENTINO JR. JOSEPH L RANDOLPH. GLEN E MCCORMICK, WILLIAM J ESCH, JASON 0 CEBALLOS. LORETA 6 *ARIEL CHIAPPETTA, FRED J KALEVA, ISAK W CAMP. JERRY M 927-4487 426-0854 452-4495 439-8456 635-1155 790-7329 562-6783 894-5439 543-4263 270-0399 933-6492 426-5183 224-8443 666-6818 289-1447 301-5513 994-3725 294-3559 384-8687 566-9582 394-0865 745-0817 859-7868 766-5137 790-9185 537-1892 564-8207 677-8279 594^6735 770-8274 1/07/2010 NMTC. Inc. d/b/a Mateo Tool s Active D i s t r i b u t o r s By State for 2009 rnu1/y i Page Date Run Date : 12/31/09 State D i s t r i b u t o r Name FL FL FL FL FL FL EL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL WHIPPIE, TERRY J MARINAN6ELI. JAMES T BRODSKY, ANTHONY I BLUM. RANDY S APPEL. JACK PHIBBS. JAHES L 6ILMAN, JAMES D *OANNY* HAGAN, RICHARD B DELGADO. RAFAEL *JULIO MI LARCO. ROMMEL MCMAHON. LIONEL V *VAUGHN AXTELL. PAUL G SMITH. PHILIP J DUFFY. WILLIAM 0 JONES. JONATHAN L CLAGETT. BRIAN DL BOWLBY. BRUCE A DIRHAN. LOUIS A *AL* WALSH. JASON H ANDREWS, DENNIS H AULD. ROBERT 8RAME, HERMAN LAURETANO. ANTHONY SCHINN. LARRY TUCKER. SHERMAN SHOCKEY. DAVID A HARRIMAH. ALAN CASTRO. GERALD MOSKALYK. LARRY WEINBERG. DAVID A MAHOOD. TIMOTHY A HEINZ. GARY J O'ALCONZO. JASON C RICCIAROI. THOMAS SLOCUM. DONALD E GAMEZ. IVAN SUNDBERG. ANDREW TALLET. FIDEL *PEPE* DIAZ. FERNANDO A OYMOND I I . HARRY *JAY* VALANCY. STEVEN H CLOWER. CHARLES *ALLEN* HASTON. GARY- L WALLIN. ANDERS E BUCCI. ERNEST J BAILEY. DONALD L LENTZ. BRIAN D THULIN. JOHN *CHIP* PARKS. ROBERT *BOB* JOSEPHSON. DOUG A Address City 1440 W NOBLE ST 902 SPINDLE PALM WAY 905 SE ATLANTUS AVE 7927 SKYVIEW BLVD 8321 SW 57TH ST 8655 79TH PL N 7160 DOGWOOD TERRACE DR 695 AlA NORTH UNIT 142 11554 HALVERNS LOOP 18203 SW 109TH PATH 579 WOODLOW RO 13834 PORT HARBOR CT 23119 OLEAN BOULEVARD 525 SW DEER RUN 5825 NW 27TH ST 1630 FIREFLY LANE 7839 NE 21ST PL P.O. BOX 358 7806 NW 71ST AVE 1322 BARRANCA AVENUE 244 VALENCIA BLVO 5575 62N0 AVE 7755 160TH LANE N 5355 SCATTERED OAKS CT 6951A VICKIE CR 15801 PALMETTO CLUB OR 4533 FIDDLER DR 6327 RAVENWOOD DR 487 EASTVIEW ROAO 1548 S MISSOURI AVE 7246 CHERRY PASS 9811 HAWK RIDGE RD 3706 POND VIEW LANE 2145 FENTRESS COURT 19300 SW 36TH ST 7955 NW 171 ST 10220 GROVE LANE 1279 SW 15TH ST 3140 SW 120TH RD 17630 JEFFERSON ST 10170 ALLEGRO 3029 KILLEARN POINT CT 5001 CHANDELLE DR 14400 BALD EAGLE DR 2890 MANDARIN MEADOWS DR 1502 SE US HIGHWAY 301 1440 CORAL RIDGE DR 190 COUNTY RD 35 16974 W GLASGOW DR 10872 TAMORON LECANTO APOLLO BEACH PORT SAINT LUCI NAVARRE DAVIE SEMINOLE PENSACOLA PONTE VEDRA BEA ORLANDO MIAMI NICEVILLE JACKSONVILLE PORT CHARLOTTE PORT SAINT LUCI GAINESVILLE DELAND HIGH SPRINGS CRYSTAL RIVER TAMARAC SPRING HILL LARGO PINELLAS PARK PALM BEACH GARD JACKSONVILLE WEST MELBOURNE PERRINE FERNANDINA BCH SARASOTA LARGO CLEARWATER OCALA TALLAHASSEE SARASOTA SPRING HILL DUNNELLON HIALEAH COOPER CITY BOCA RATON MIAMI OAKLAND BOCA RATON TALLAHASSEE PENSACOLA FORT MYERS JACKSONVILLE HAWTHORNE CORAL SPRINGS BUNNELL LOXAHATCHEE BOCA RATON Area Phone Zip Code Code Nuniber 34461 33572 34983 32556 33328 33777 32504 32082 32832 33157 32578 32224 33980 34953 32653 32720 32643 34423 33321 34609 33770 33781 33418 32258 32904 33157 32034 34243 33770 33756 34472 32312 34235 34609 34431 33015 33328 33486 33175 34767 33428 32312 32507 33912 32223 32640 33071 32110 33470 33498 352 727 772 850 954 727 850 904 407 305 850 904 941 772 352 407 352 352 954 352 727 727 561 904 321 305 904 941 727 727 352 850 941 352 352 305 954 954 305 321 561 650 850 239 904 352 561 386 561 561 422 •6785 455 •8320 628 -4872 686 -5697 608 -3265 710 -0997 341 •3404 210 -6753 488 -44X4 244 •3139 974 •0058 591 -2555 661 -6995 579 • 7460 281 -8563 402 -0331 275 -6633 464 -4735 326 -2725 585 -7750 585 -9946 5412268 7458575 2609424 956 -2010 253 -2391 277 •8000 351 -6876 584 •4852 409 -3191 362 -6797 893 -4618 954 -8009 666 -5541 465 -2148 825 -1063 434 •5424 557 -9044 221 •6044 277 •8750 479 -4690 894 •5439 341 -1336 768 -0368 334 -7953 481 •4759 699 -5611 931 -8715 252 -8358 470 -9792 1/07/2010 NHTC. Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State f o r 2009 KMUi/Ul Page Date Run Date : 12/31/09 State D i s t r i b u t o r Name FL FL FL RAMIREZ. JOEL TODD. DAVID P CRISP. GERARD State Count: GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA Area Phone Zip Code Code Number Address City 1683 W 57TH ST 937 GUNBY AVE SOUTH 37 ZONAL GERAINIUM TRAIL HIALEAH LEHIGH ACRES PALM COAST 7335 NOB HILL DRIVE 195 MARCELLA AVE 64 DELRAY CIRCIE 5110 WRIGHTBRIDGE ROAO 155 MOORE ROAD 13045 HAMILTON ROAD 22 LATIMER LANE 3626 LAKESHORE DRIVE 3350 LONGFIELD DRIVE 324 HIRAH LANE 2955 SUMMIT LANE 267 CYRIL P BURKHALTER RD 518 COPPER LAKE RD 207 KINGS CREST BLVO 1505 BRIERSCHUTE 1135 STILLWELL-CLYO RD 617 CARRINGTON RIDGE 786 OAK RIDGE COURT 110 SLAPPY OR 3630 ELINBURG DR 235 ROLLINGWOOD DR 478 HENDON ROAD 3780 JONES CREEK DR 315 FURROW CREEK CT 427 DOCKSIDE COVE 1065 ASHFORD CHASE COURT 1835 TIHOTHY DR. NE 4804 ANNISTOWN ROAD 4851 WRIGHTSBORO ROAD 2733 STANLEY MAXWELL RD 803 MARBROOK DR 4190 HURT BRIDGE RD 532 BILL WATKINS ROAD 210 MORNING GLORY RIDGE 14 SILVERMONT OR SE 3228 WARREN CREEK DR 522 BRADFORD PLACE COURT 4132 REID RD 10 PERRY RO 35 BARRY DR 5331 AHBER COVE WAY 807 CAMBRIDGE CREEK DR 27 ANN RD 56 LEE ROAD SE MACON 31216 SHARPSBURG 30277 NEWNAN 30265 CUMMING 30040 VILLA RICA 30180 PALMETTO 30268 CARTERSVILLE 30121 AUGUSTA 30907 SNELLVILLE 30039 CLAYTON 30525 MONROE 30655 6LENNVILLE 30427 ALMA 31510 PERRY 31069 ALPHARETTA 30004 SPRINGFIELD 31329 STOCKBRIDGE 30281 LAWRENCEVILLE 30044 HAMILTON 31611 BUFORD 30519 ATHENS 30605 WOODSTOCK 30188 BUFORD 30519 JACKSON 30233 WOODSTOCK 30189 MACON 31210 ATLANTA 30329 STONE MOUNTAIN 30087 GROVETOWN 30813 BOWMAN 30624 LAWRENCEVILLE 30044 CUMMING 30028 HOSCHTON 30548 CANTON 30115 SILVER CREEK 30173 HIRAM 30141 LOGANVILLE 30052 DOUGLASVILLE 30135 BLOOMINGDALE 31302 FORSYTH 31029 FLOWERY BRANCH 30542 CONYERS 30094 CARTERSVILLE 30121 CARTERSVILLE 30121 33012 33974 32164 305 828-9526 239 287-0516 386 437-4296 83 TOWNSEND. DALE NORTH. CHRISTOPHER DAVIDSON. JEREMY R HOHENBERGER, JAHES L BLANKINSHIP. BARRY D DAVIDSON. SAM L SHAY. JOE T JR JACKSON. THOMAS S BENNETT. JAMES 0 *OOUG* MORGAN. JAIME L WINSTEL. JONATHAN P KENNEDY. HERBERT *SHANE* CHANCEY. JAYSON C HETCALF. SAH A HAURER. MICHAEL 6 BRANNIES. RICHARD W HEATON. MICHAEL P KOEHN. JAHES S SINGLETON. MICHAEL J VAZQUEZ. ENRIQUE *HENRY* ROWLAND. RUSSELL *JACK RO CATO. LAWRENCE "MITCHPARKER. LESLIE *WAYNE* PIEDRA. RUBEN D JR GAUNDER, CHRISTOPHER M GALLAWAY. JEFFREY L HARQUEZ. JOSE *ALEX HARQU KUFFREY. GEOFFREY GOEN. CHARLES CROSSWAY, DONALD HALABY. SCOTT CAMP. D ALAN RASCH, RANDON H CAMPBELL. WALTER S SIDWELL, R STEVE JONES. SCOTT E GOSSETT, DANIEL A JOHNSON. RONALD E ROBERG, STEVEN R EDWARDS. ROBERT L GRANBY. STEVEN C MICKLE. WALTER *KEVIN* KEESLER. WILLIAM *BILL* DAVIS. RICKY 0 478 770 770 770 770 770 770 706 678 706 678 912 912 478 404 912 678 770 706 404 706 404 *N0 404 770 478 404 770 706 706 770 678 706 770 706 770 770 770 912 478 770 770 770 706 747^4183 253-8987 304-9249 888-1727 459-5882 463-2485 516-8134 284-5749 717-8521 490-0160 940-4402 237-1056 632-2277 396-4251 429-9393 657-6812 491-0461 289-4447 332-4416 663-6226 714-7502 819-2642 PHONE*** 348-7093 596-3859 719-2686 993-0503 413-5999 799-1613 245-8163 972-6964 947-3992 654-9384 844-6333 346-5364 439-3130 466-7141 920-0774 441-4360 994-4653 965-1968 860-0563 757-1396 537-4449 1/07/2010 NHIC. Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State f o r 2009 Page Date Run Date : 12/31/09 >tate Oi s t r i butor Name GA GA GA GA GA GA GA GA GA RANDALL. BRIAN ALLEN. DAVID FARESE. JOSEPH GREGORY. STEVEN R GILLMAN. JOHN A CAPRARO. RICHARD M *RICK* CALDON. GEORGE J KING, ROBERT C WEST, LEROY H JR State Count: HI HI HI HI HI HI HI HI HI HI HI *JOE* CANON. ALBERT 0 *DINO* ABALOS. ROBERT D ALABAB. TONY JR ITAKURA. MILES E SOUZA. LESLIE C JR TOMIHAMA. ROY S JR LEE. KEVIN NAKAOKA. CURTIS Y SEXTON. RUSSELL D State Count: IA IA IA IA IA IA IA IA IA IA IA IA IA IA IA IA IA IA IA ID ID COOPER. JAMES P STURMAN. ROBERT D 3467 SANDY BANK DR 85 HICKORY BRANCH DR 575 SAINT REGIS LANE 95 FIVE OAKS DR 4024 HOLCOMB CREEK OR 617 MAGNOLIA ST 500 CAMBER WOODS DR 4450 INDIAN TRACE DR 9325 WHITFIELD AVE AUBURN ACWORTH ALPHARETTA COVINGTON BUFORD VILLA RICA ROSWELL ALPHARETTA SAVANNAH 30011 30101 30022 30014 30519 30180 30076 30004 31406 678 770 678 770 678 404 678 404 912 432- 5895 434- 2549 795 -1968 787- 6544 714- 2753 550- 4170 698- 4519 915- 9350 354- 9119 45 334 MEALELE ST 91-1662 KAUKOLU STREET 91-1512 KEONEKAPU ST 522 POHAI ST 118 WEST PAPA AVE PO BOX 610 47-422 HUI AUKUU 95-213 KUAHAUA PL 3411 PAWAINA ST 73-4369 LAUI ST 95-1060 HAALILO ST KANEOHE EWA BEACH EWA BEACH KAHULUl KAHULUI KALAHEO KANEOHE MILILANI HONOLULU KAILUA KONA MILILANI 96744 96706 96706 96732 96732 96741 96744 96789 96822 96740 96769 808 808 808 808 806 808 808 808 608 808 608 286216778877778551478222988 329 626 106 REDBUO LANE 1380 W FOREVERGREEN RD 1674 HIGHWAY 30 30785 WOODLAWN DR PO BOX 34 2748 NW 75TH PLACE 165 PRINCETON PL 67 NE 72ND ST 26821 FRICHER RD 1817 385TH AVE 21063 ERBE ST 2481 HERITAGE OR 67 NE 72N0 ST 5154 NORWOOD DR 400 4TH STREET 2440 NEWPORT SW 945 202ND AVE 10021 210TH ST 1002 7TH ST COUNCIL BLUFFS NORTH LIBERTY CALAMUS BELLEVUE CENTRAL CITY ANKENY DUBUQUE PLEASANT HILL SILVER CITY BROOKLYN CARLISLE WILLIAMSBURG PLEASANT HILL BETTENDORF DEEP RIVER CEDAR RAPIDS PELLA WALCOTT SHELDON 51503 52317 52729 52031 52214 50021 52001 50327 51571 52211 50047 52361 50327 52722 52222 52404 50219 52773 51201 712 319 563 563 319 515 563 515 712 928 515 319 515 563 641 319 641 563 712 323- 6B77 626- 6721 210- 6831 249- 6081 521- 1069 289- 1839 513- 7510 979- 4880 242 -8594 249- 0154 971- 3735 759- 1183 261- 7125 508- 1595 595- 2782 369- 0916 628- 1186 324- 6076 324- 4587 53 NORTH 1ST WEST 12262 IOWA AVE PRESTON NAHPA 83263 83686 208 852- 1593 208 830- 5243 6436 6574 6099 6688 6633 9460 9185 5941 2054 1145 7140 11 STOUT. DONOVAN K YOUNG. RODNEY R BUCHHEYER. MARCUS Q ANDERSON. AARON P PEARSON. NATHAN E JOHNSON. GREGORY COATES, ERIC A CATTELL. DENNIS R *JAHES PHILEBAR. KEVIN J STEFFENSMEIER. LISA *BRAN HENTZER. SCOTT L HERTENS, ROBERT J CATTELL. DENNIS VANDEVOORDE. JOHN BRUESS . OUANE C CAFFREY. BOB J MAY. MARK E ROSEMAN. LYSLE V ROTH. KEVIN M State Count: City 53 JOHNSTON. RICHARD OAFANG. JOVENCIO Area Phone Zip Code Code Number Address 19 10 1/07/2010 NHTC. Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State f o r 2009 PHUi /Ui Page Date Run Date : 12/31/09 ID ID ID ID ID ID ID Area Phone Zip Code Code Number Distributor* Name Address City BOLL. JONATHAN A JENSEN, SHANE HILL. JAY BEAN. NOEL BARBER. PHILIP M HARPER. WILLIAM A JENSEN, PAUL W 1032 E 1200 N 1900 N MCDERMOTT RD 896 HARMONY RD 11615 N CHASE 4345 HENDERSON LN 479 EAST KING RO 539 E 700 N SHELLEY KUNA TWIN FALLS RATHDRUM POCATELLO KUNA FIRTH 83274 83634 83301 83858 83202 83634 83236 208 208 208 206 206 208 208 520861734687238922^ 346- 1649 7048 5486 5581 0243 2837 4310 5020 E RICHLAND AVENUE 403 W. SHERIDAN 3610 MAPLE 29 W 280 MARK DRIVE 42W 721 STILLMEADOWS LANE 1482 WOOOSCREEK CIRCLE 2824 NORTH AVE 4240 PEARTREE DRIVE 7000 60LFVIEW DR 473 VERRETT STREET 840 SAINT ANDREWS CIRCLE 10N933 HIGHLAND TR 616 S 15TH AVENUE 113 N MAPLE 9N712 SANTA FE TRAIL 271 MIODLEBURY CT Dl 635 ROCHDALE CIRCLE 1454 E 2900 NORTH RD 270 TIMBER RIDGE COURT 8738 REZY ROAO 25010 178TH AVE NORTH 603 THIRD ST 10281 PINESAP PLACE 417 APPALOOSA TRAIL 204 TOWNE ST 5707 LANOCASTER CR 19598 W MARTIN DR 997 CASTLESHIRE DRIVE 4235 W 151ST ST 137 AUGUSTA DR 35 S SOUTH ELGIN BLVD 205 SOUTHGATE DR 207 W ADAMS 554 SILVER ASPEN CIRCLE 554 S ARDMORE AVE 611 OAK KNOLLS AVE 506 SOUTHWOOD CIRCLE 659 ROCHDALE CIRCLE BOX 84 206 N PEORIA ST 359 OAKLAWN CHILLCOTHE PETERSBURG BERWYN NAPERVILLE ELBURN CRYSTAL LAKE METROPOLIS LAKE IN THE HIL COUNTRYSIDE ELMHURST RANTOUL HAMPSHIRE MAYWOOD MT PROSPECT ELGIN SCHAUMBURG LOMBARD MOWEAQUA JOLIET NEW DOUGLAS CORDOVA COLONA ROSCOE PLANO MORRISON MCHENRY MUNDELEIN WOODSTOCK MIDLOTHIAN GILBERTS SOUTH ELGIN BELLEVILLE ATLANTA CRYSTAL LAKE VILLA PARK ROCKFORD STEAMWOOD LOMBARD NEW HOLLAND ELMHURST 61523 62675 60402 60564 60119 60014 62960 60156 60525 60126 61866 60140 60153 60056 60123 60193 60148 62550 60431 62074 61242 61241 61073 60545 61270 60050 60060 60098 60445 60136 60177 62223 61723 60014 60161 61107 60107 60146 62671 60126 309 217 708 630 630 815 618 847 708 630 217 630 312 847 815 847 630 217 815 618 309 309 815 630 815 847 224 815 708 847 630 616 217 815 847 615 630 847 217 708 274632484922365 479 524 854 853 832 778 774 907 610 505 971 935 433 474 973 314 314 970 514 499 264 595 861 539 354 667 604 750 382 354 914 885 436 971 997 4109 7469 5473 1913 5573 1075 4539 6410 0093 2911 2200 9326 9406 0918 4864 7795 1116 3060 4674 9025 0631 2423 3687 7090 3138 0302 2269 9359 9138 1457 5886 4768 1100 8590 3188 5672 3041 7162 6246 6394 State Count: 9 THURHAN. ROBERT F BLIVEN, STEPHEN A MARKHAM. SETH R GOLEBIEWSKI. KRZYSZTOF KRAGE. KEVIN W ZAHARIAS, THOMAS M BUNTING. TERRY FUCHS. MICHAEL P PETROVICH. ART HOLER. JOHN E BERGMAN. KEVIN R *CHRIS W ANDRINOPOULOS, ARTIE GILMORE. JAMES K SHERRICK. CLARENCE *CHRIS NAWROT, GREG P SHEAFFER. ROBERT T THOMAS. MICHAEL A FRIESNER. SCOTT E *ERIC* MORES. ANTHONY J TANNER. FRED H JR SLATER, JASON T DIETZ. CHRISTOPHER S DEWAR. STEVEN W HARRELSON. CHRISTOPHER J BRANDON. DAVID G JR STEFFENHAGEN. WILLIAM J SUAREZ, ARMANDO JR JERZ. MICHAEL J REICHEL. JACK A TUOHY. MICHAEL W *TONY ST SCALPONE. VINCENT HUBBLE, OAVIO E GRIFFITH. KEITH A *ALAN* NICCOLAI, BRUCE B BRUNO, OOHINICK A STRAWSER. ROBERT H THATER. ROBERT G KANAREK. MICHAEL R WILLIS. DAVID M MCNEIL. TIM P 11 1/07/2010 NMTC. Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State for 2009 r nu i / u 1 Page Date Run Date :12/31/09 State D i s t r i b u t o r Name KLOEMPKEN. WILLIAM E BRIGHT. DOUGLAS NEWMAN. ALAN GOODALIS, THOMAS NANCE. ROGER CHIOVARI. JOSEPH ROJEK. CHRISTOPHER BERGMAN. KEVIN WOLFE JOHN FORSYTHE, KEVIN NORKUS. JOHN ORTS. ANTHONY DENTON. ROBERT ROZHON. STEVE HASTINGS. GERALD WALTER. ANDREW KASTNER. ANDREW PATULA. CHARLES PERRIN. THOMAS KACIR. RONALD ENGELMANN. GLENN HAZELWOOO. GARY DAEHICKE. PAUL DAWSON. RICKY E DANIELS. JACK TUOHY. MICHAEL BERGMAN. AARON S WILSON. MIKE FREUND. ROBERT *MIKE* HENOZI. HARK C ENGELMANN. ERIC D LESZCZYS2YN. HARK J NYLEN. BRIAN VOYLES. KEITH E BORCHAROT. ROB HECKER. DANIEL R GIBBONS. EVAN ROY, MICHAEL H STERNBERG. ARTHUR R SMITH. TONY *TJ* MUELLER. MARK G STERLING, SALLY STARBUCK , ERIK A DEUJSCH. CHARLES P ANGELETOS. EMANUEL OTTE. BRETT T State Count: IN GIVENS. STEVE Area Phone Zip Code Code Number Address City 215 PINEWOOO OR 1190 E 1800 NORTH RO 10129 LAWRENCE COURT 1263 LEVERENZ RO 3267 SAND ROAD 1105 NORTH WHEATON AVE 12663 MARTINGALE 1433 RIVERBENO 12040 S WOLFE DR 3804 CRYSTAL LAKE AVE 7N 305 BLUESTEM CT lOOOB ROUTE 25 2 FALCON RIDGE COURT 13514 W HAGGARD 3832 W 109TH PLACE 18315 LORETTA DR 708 KERRY CT 17529 S 65TH AVENUE 8440 W 50TH STREET 23500 FARMDALE RD 783 WATER TOWER ROAD 316 CROPSEY AVENUE 1647 CAROL STREET 20 WEST 066 99TH ST 175 NOTTINGHAM LANE 137 AUGUSTA DR 200 "N LOGAN 522 CONSTANZO LANE 1136 PINE TREE LANE 3720 PRAIRIE LANE 2043 BALDWIN RD 231 CUMHINGS OR 810 JOANNE DR 111 N BERTEAU AVE 1231 ORCHARD AVE 2213 STEINKOENIG SCHOOL R 1310 IRONWOOO OR 6904 S MOODY 701 GREENVIEW AVE 29085 MECHLING LANE 21 W 303 SIDNEY 622 OTTO ROAD 29 W 526 WINCHESTER CR S 205 OSAGE ST 310 WARWICK LANE PO BOX 644 GODFREY MONTICELLO OAKLAWN NAPERVILLE EDWARDSVILLE WHEATON HOMER GLEN WHITE HEATH PLAINFIELD CRYSTAL LAKE ST CHARLES OSWEGO ALGONQUIN HOMER GLEN CHICAGO MARENGO GILBERTS TINLEY PARK MCCOOK WASHINGTON JACKSONVILLE DIXON DOWNERS GROVE LEMONT BOURBONNAIS GILBERTS EMOEN BETHALTO LI8ERTYVILLE MORRIS JACKSONVILLE BARTLETT MINOOKA BARTLETT CHICAGO HEIGHTS HIGHLAND NORMAL OAK LAWN DES PLAINES ROCK FALLS LOMBARD MACHESNEY PARK WARRENVILLE KINOOKA LAKE IN THE HIL MONTGOMERY 62035 61856 60453 60564 62025 60187 60491 61884 60585 60014 60175 60543 60102 60491 60655 60152 60136 60477 60525 61571 62650 61021 60515 60439 60914 60136 62635 62010 60048 60450 62650 60103 60447 60103 60411 62249 61761 60453 60016 61071 60148 61115 60555 60447 60156 60538 618 217 708 630 618 630 708 217 708 815 630 630 847 708 773 815 847 708 708 309 217 815 630 630 815 847 217 618 847 815 217 847 815 630 708 616 309 708 847 815 630 815 630 815 847 630 5920 SOUTH 425 WEST PENDLETON 46064 765 378 0590 806- 8367 762 -7603 4227395 5270675 6550595 6657846 3014565 5866364 542- 3506 479 8604 5841988 966 2630 8548776 3018945 206- 8454 923 2056 561- 4047 429- 4757 209 5042 699 1996 899 1688 288 2363 417- 2693 783 8402 939 1620 697 9383 376 3870 377 0351 680 4685 353 2372 899 6207 202 6178 467 2427 483 8736 754 2562 654 1357 287 7979 642 1233 298 2768 622 0462 495 2496 654 0685 393 6173 685- 0075 669 8086 212 7635 86 12 1/07/2010 NHTC. Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State f o r 2009 PMUl /Ul Page Date Run Date :12/31/09 State D i s t r i b u t o r Name IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN WILSON, TERRY J OTTE. GEORGE A WEIR. KEVIN R DREWS, DEAN M HOJEM, TRAVIS J THORNE. TOOD A ROST. PAUL E JR MANGO, THOMAS L TOWER, TIMOTHY D BONEBRAKE. CLARK OLSON, RONALD J YODER. RICHARD L YOOER, OAVIO L WHITE, BRYAN D HOFFMAN. DREW A ALLEN, MICHAEL GUILFOYLE, PAUL R *RICK* GRAF, DAVID R LYNCH, LARRY D SMITH, STEVEN R CLUELOW. HARRY LIVRONE. DAVID SOBOTA. CHRISTOPHE HOLDMANN. CHUCK A DENNIS. MARK 0 YOUNG, JAMES A *JIM* HARRIS. ROBERT R HAMILTON. GROVER GUTIERREZ, JOSEPH G TYREE, TIMOTHY P RILEY, MICHAEL K HAGAN, DEAN A ACKERHAN, CRAIG L WAKEFIELD. CHARLES R HARRIS. RANDALL L DUNFEE. TIMOTHY A BEEOLE. WILLIAM B State Count; KS KS KS KS KS KS KS KS KS KS Area Phone Address City 1559 MORTON STREET 1196 DARCrS DRIVE 2106 N DIXON ROAD 15218 HIDDEN OAKS RUN 680 CENTRAL DR 9860 CHESTERTON 15698 LIN RD 13121 KNOLLTON CT 345 N WOLF RD 10016 E 131ST STREET 6495 GLENWOOD TRACE PO BOX 127 923 S 23RD STREET 5461 N 750 E 17218 MCDUFFEE RD 5059 BENJAMIN RD 22433 ST MARTINS LN 51328 HARBOR RIDGE DR 182 HIGHLAND 1707 MIMOSA LANE 12002 LANTERN RD 65322 STATE RD 331 3544 42ND STREET 4263 W 153RD AVE 7207N CR200W 10035 N TURKEY CREEK 702 994 E LEVILEE RD 4341 W CARMOLA DR 5767 ROOSEVELT PL 7160 N PRIVATE RD 130W 6209 GRANNER DR 2067 W COUNTY RD 725 N 11500 NADORFF RD 2920 E 750 S 4362 E ALLISON RD 521 HOMESTEAD AVE 763 JUNIPER RD NOBLESVILLE SEYMOUR KOKOMO HUNTERTOWN MARTINSVILLE INDIANAPOLIS FORTVILLE FISHERS COLUMBIA CITY FISHERS ZIONSVILLE WAKARUSA SOUTH BEND NORTH WEBSTER CHURUBUSCO TERRE HAUTE GUILFORD GRANGER FRANKLIN ANDERSON FISHERS BREMEN HIGHLAND CROWN POINT LIZTON SYRACUSE WARSAW BLOOMINGTON MERRILLVILLE BRAZIL INDIANAPOLIS LIZTON GREENVILLE CLAYTON CAMBY SEYMOUR VALPARAISO 46060 47274 46901 46748 46151 46280 46040 46038 46725 46038 46077 46573 46615 46555 46723 47802 47022 46530 46131 46011 46038 46506 46322 46307 46149 46567 46582 47404 46410 47834 46221 46149 47124 46118 46113 47274 46385 317 812 765 260 612 317 317 317 260 317 317 574 574 574 260 812 513 574 317 765 317 574 219 219 317 574 574 812 219 812 317 317 812 317 317 812 219 776 0758 525 2759 438 0997 452 8871 219 4542 341 1090 440 8155 503 4953 610 4409 845 3451 503 1563 354 2646 252 9827 518 4404 515 3525 234 5701 652 3249 344 6437 442 2082 623 9741 595 9526 6334431 682 7665 696 1565 994 5092 518 1666 453 9424 876 8559 884 7545 448 9834 509 6425 994 5376 923 9235 539 7621 831 6393 522 8131 759 1246 PO BOX 724 11228 VALLEY HI COURT 771 E 1485 ROAD 724 W WALNUT STREET 9705 W 49TH PLACE 10399 BARTON RD 12808 5 WIDHER 17423 SW OHIO ST 7006 SE 89TH ST 831 SOUTH ERIE TONGANOXIE WICHITA LAWRENCE SALINA HERRIAH LEONARDVILLE OLATHE DOUGLASS BERRYTON WICHITA 66086 67209 66046 67401 66203 66449 66062 67039 66409 67211 913 316 785 785 913 765 913 316 785 316 432 640 760 643 634 313 961 651 817 258 Zip Code Code 38 RIEOEL. ROGER E JONES. STEVEN L YOST. TREVOR N GUNEL50N. JEFFREY S WILLMOH. JOHN T JR CAMERLINCK. BRENT WALTERS. LAYNE W JEFFRIES. JOE T HAUFLER. ERNEST C *ERNIE* OUERKSEN, LUETTA A *JAHES 7941 9900 3541 5019 8893 0172 3255 7473 2933 7929 13 1/07/2010 NMTC. Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State for 2009 rnu1/uI Page Date Run Date : 12/31/09 State D i s t r i b u t o r Name KS KS KS KS KS HUTH. STEVEN AHRENS. JOHN LUMH. DAVID KLOSTER, BRIAN J WINKLER. JEFFERY T 'TERM' State Count: KY KY KY KY KY KY KY KY KY KY KY KY KY KY KY KY KY KY KY KY KY KY KY KY LA LA LA LA LA LA LA LA LA LA LA LA LA LA LA City 1546 BACHTOLD 15410 LAKE RD 10 318 N 2ND ST 7905 LAKEVIEW AVE 3204 LABETTE RO SALINA GARDNER INDEPENDENCE LENEXA OTTAWA 67401 66030 67301 66219 66067 785 913 620 913 785 452-8547 488-8665 331-7772 888-6988 242-8267 LANCASTER MT. WASHINGTON WALTON LA GRANGE LOUISVILLE ERLANGER BROOKS TAYLORSVILLE MT WASHINGTON WACO INDEPENDENCE ROCKHOLDS CALVERT CITY RUSH BEAVER DAM FT THOMAS LEXINGTON LOUISVILLE LOUISVILLE PINEVILLE ELIZABETHTOWN LOUISVILLE LOUISVILLE WINCHESTER 40444 40047 41094 40031 40207 41018 40109 40071 40047 40385 41051 40759 42029 41168 42320 41075 40503 40291 40299 40977 42701 40242 40258 40391 859 502 859 502 502 859 502 502 502 859 859 606 270 606 270 859 859 502 502 606 270 502 502 659 584 693 743 338 287 727 381 396 609 358 760 260 898 474 274 781 536 231 338 337 765 412 640 338 2322 3106 2247 7248 8888 3116 1954 9008 5285 6115 9868 1685 3030 9037 9708 4784 8665 5412 8464 3152 7872 7551 1308 1015 70663 70726 70663 71446 71446 71234 70508 70065 70560 70817 71115-3812 70560 70727 70301 70663 409 225 337 337 337 318 337 504 337 225 318 337 225 985 337 363 485 853 208 353 348 349 275 319 752 797 560 938 637 527 2304 7231 0188 6511 2166 2572 0068 9302 1366 2695 2643 5324 5804 7882 9048 15 ROBINSON. PATRICK 151 SYCAMORE DRIVE WEILBAKER. JEREMY A 198 HILLCREEK COURT PARKER. BRIAN K 878 MAHER ROAD BUROETTE. RICK 0 3614 ECHO VALLEY CIRCLE WETZEL. JACK A 705 VICTORIA PLACE GOINS. WILLIAM *TONY* 1233 BRIGHTLEAF BLVD MARTIN. JOHN R 4273 KNOB CREEK RD SULLIVAN. JOHN C 3470 YODER TIPTON RD SIMPSON. BRIAN W 188 APOLLO DRIVE HARP. JOHN D 729 FLINT RD CORNETT. RONNIE E 1142 CANNONBALL WAY HAMBY. PAUL R 6306 HWY 26 MORGAN. PRESTON R 155 MONROE RD CONLEY. WILLIAM *E0* 1858 S STATE HGWY 207 EMBRY. BARRY L 1318 CHERRY LANE WALKER. JEFFERY K 8 KYLES LANE COHRON. JEFFERY B 3486 BATHHURST CT GRIVOIS. DANIEL J 8121 AVANTI WAY HUGHES. ANTHONY *TONY* *T 10501 VINTAGE CREEK OR FISHER. ROBERT S RRl BOX HOC HIGHWAY 1534 PERRY. WILLIAM K 166 AMY AVENUE HATFIELD. DAVID F 1621 WASHINGTON BLVD SCHNEIDER. ALBERT L 7610 MARIE ANNA DR CRUMP. TRUITT K 7615 ROCKWELL RD State Count: Area Phone Zip Code Code Number Address 24 BELAIRE. DARIN K NICHOLS. RICKY D CASE, KEITH T *TROY* HCWILLIAMS, CLAYTON J HCWILLIAMS. JEFFERY R FREEMAN. JOHNNY R FREEMAN. JESSE M LEWIS. ALAN L HERNDON. ANTHONY *CARL IS FALCON. HERSHEL MURPHREE. L GREGG HERNDON. ANTHONY *CRAIG* WARREN. EDDIE B AYO. SHANE G MURRAY. MICHAEL S 3734 PARKER ROAD SULPHUR 25558 PLANTATION AVE DENHAM SPRINGS 106 E END AVE SULPHUR 212 CALCASIEU LOOP LEESVILLE 905 DENNIS AVE LEESVILLE 366 JEFF TIDWELL RD DOWNSVILLE 2314 KALISTE SALOON APT 1 LAFAYETTE 15 EMILE AVE KENNER 4609 HWY 14 NEW IBERIA 14416 COTTINGHAH COURT BATON ROUGE 11114 SOUTHBROOK DR SHREVEPORT 4609 HWY 14 NEW IBERIA PO BOX 2211 DENHAM SPRINGS 971 HIGHWAY 20 THIBODAUX 3552 ST RAPHAEL LANE SULPHUR 14 1/07/2010 NMTC. Ine. d/b/a Mateo Tools Active D i s t r i b u t o r s By State f o r 2009 pnu 1 / u 1 Page Date Run Date :12/31/09 State Di s t r i b u t o r Name State Count: MA MA MA MA MA MA MA MA MA MA MA MD MO MD MD MD MD MD MD MD MD MD HD MD MD MD MD MD MD MD MD MD MD MD HD HD HD ME ME PAQUETTE. DONALD R SR HINKLEY. JAHES W JR State Count: 175 SCANTIC RD 225 ADAMS RD 54 SPRUCE STREET 2 BAYVIEW AVE 70 FAYHORE DRIVE 23 MACKINTOSH ST 21 RACE COURSE RD 2 PARKHURST DRIVE 121 FULLER STREET 11 REDCOAT LANE 1125 THORNDIKE ST HAMPDEN EAST BROOKFIELD FOXBORO BERKLEY AGAWAM FRANKLIN LAKEVILLE LAKEVILLE MIDDLEBORO LEXINGTON PALMER 01036 01515 02035 02779 01001 02038 02347 02347 02346 02420 01069 413 774 508 508 413 781 508 508 508 781 413 566-5318 696-6283 765-5689 8247736 7866261 760-0837 947-7621 947-8024 946-1302 863-5421 283-4775 1831 WYCLIFFE ROAD 695 VEROA LANE 603 WALKER ST 871 WARNER DR PO BOX 38 512 LOCUST AVE 13 CRESTVIEW GARTH 2045 ROLLING KNOLLS COURT 17738 JENNIFER LANE 2115 OLIVER DR 4005 BEE COURT 18 GROUND PINE PATH 15 CARTER RD 2706 PEMBERTON RIDGE 9943 MILA ST 17 HARWOOO OR 11006 POWERS AVENUE 2771 SWANN WAY 7802 W B 4 A RD 7929 OAKDALE AVE 36740 HAYS LANE 1119 LITTLE MAGOTHY VIEW 1308 SPENCERVIILE RD PMB 393 AT UPS STORE 1736 DREXEL RD 4718 QUIMBY AVE 2195 BALTIMORE BLVD BALTIMORE HUNTINGTOWN ABERDEEN HUNTINGTOWN WESTMINSTER BALTIMORE HUNTINGTON HAGERSTOWN PRINCE FREDERIC WESTMINSTER ELKTON RISING SUN BALDWIN DENTON HARWOOD COCKEYSVILLE DAVISONVILLE SEVERN BALTIMORE CHAPTICO ANNAPOLIS SPENCERVILLE WESTMINSTER DUOALK BELTSVILLE FINKSBURG 21234 20639 21001 20639 21157 21237 20639 21740 20678 21157 21921 21911 21013 21629 20776 21030 21035 21144 21237 20621 21409 20868 21157 21222 20705' 21048 410 443 443 410 410 410 301 301 443 410 302 410 410 410 301 410 410 301 410 301 410 301 410 410 301 410 665-3589 486-4737 528-2823 320-5308 596-4815 404-6788 706-2831 908-3087 975-4510 259-3276 545-5118 688-2540 5578255 4799564 943-6477 628-2886 956-5767 529-9607 780-9561 769-3945 349-2083 476-9543 375-0066 477-2863 793-9254 876-3309 8 F SANBORN RD 57 B HILL ST SABATTUS SACO 04280 04072 207 375-7210 207 284-7663 11 KLOIBER. JOSEPH PEAY. WILLIAM *OAVE* KIDD, JEFFREY A KRAMER. PAUL *PAUL PESSAN HAMMOND, NOAH Z ALT, DUDLEY F *DOUG* CANIGLIA. ANTONIO E ALBERTSON. SCOTT H PESSAGNO. MARTIN T HASH. WILLIAM J *JEFF* ROARK. TROY BENJAMIN. HENRY WA CORBETT. ROBERT LAYTON. JEFFREY DEBOE. STEVE HAITMANEK. KEVIN LAMBERT. ERICK SCHWEITZER. BRIAN WEICHERT. GEORGE JR HAYS. JAMES R PARR. DAVID MCKENNEY, BRIAN P BERMAN, BARRY E JANECZEK. EUGENE *BUTCH* KELLY. JOHN L CORBETT, JAMES J State Count; City 15 BROOM. DOUG ALLEN. MATTHEW C ALLENCHEY. THOMAS W SMITH. ROBERT H GILLIS, ED LUKE. JAMES FIELDS, DAVID FERNALD. DANA E MURPHY. PAUL F JOHNSON. DAVIO S MURPHY. CRAIG J State Count; Area Phone Zip Code Code Number Addres s 26 15 1/07/2010 NMTC, Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State f o r 2009 rnu i/u 1 Page Date Run Date :12/31/09 State D i s t r i b u t o r Name MI MI MI MI MI MI MI MI MI HI HI MI MI MI MI MI MIMI MI MI MI MI MI HI HI MI MI HI HI MI MI MI MI MI MI MI MI MI MI HI MI MI MI HI Ml MI MI MI MI HI FRENCH. MICHAEL A LOJSELLE. ZACHARY T SCHIMELPFENIG, LOUIS E KNAPP. JODY A SNELL. DOUGLAS *OOUG* ZINK. JOSEPH A JR ZU0OR. JOHN P CRONAN, ALAN J DOWNARD, DAVID W ATKINSON, JERRY R WARES, RYAN J CHOROBA, TIMOTHY P SPEDOING, DONALD G FRECHETTE. THOMAS H TRUDELL. BARRY M MAOIGAN, KEVIN B COOK, GEORGE R HUNTLEY, LOREN F MINNEY, LLOYD *CURT* HACHINSKY, RICHARD A KLUH6LE, GORDON A 'SOLE M NYQUIST. TODD A HABTSOCK. GREGORY 8 MORAWA, STEPHEN L BETTS, EVERETT G BISHOP, RONALD S LEARMAN, JEAN M *DENNIS L DANULOFF. ANDREW H STINSON, DAVID R BAKER, WILLIAM *BILL* GERAGOSIAN. GARY & RUTH PANKOW. MICHAEL WITHUN. GARY HURD. CHRIS CONWAY. DENNIS SHIELDS, ROB CHAHBOS, NICK RAINKO. MARK E ZIEGLER, JOHN WHITLOCK. FRANK HCCOWAN, WILLIAM *BRUCE* GREENMAN. CALVIN *SKIP* ZISKE. JOHN WAGNER. JOSEPH F K06ELMAHN, GARY BUCHANAN. DAVID J MCCONE. KEVIN S MINIKEY, TIMOTHY G RYAN, TIMOTHY C BRUSSEAU. JAMES 0 Address City 11801 DOROTHA DRIVE 593 ANN STREET 9963 SCHOLAR DR 7515 11 MILE RD 7473 PARADISE COURT 3220 CRESTHILL LANE 490 N 6 MILE RD 11573 CADY RD 47924 E MAIN ST 171 ROOD DR 604 MINNESOTA AVE 2767 BUTTERCUP CT 1008 IRWIN DR 8476 SEYHOUR RD 8690 MCCAIN RD 14810 TOEPFER 10801 SCONCEWOOD DR 93 HUNTERS RILL 1613 NEWCASTLE RD 2280 CARLETON WEST 4935 13 MILE RD 2830 FULLER AVE NE 10328 TIMBERLANE DR 19992 POLLYANNA 118 GRAND ST 1671 70TH AVE 1425 DOVER PLACE 6910 KINGSLEY CIRCLE 6251 BRIARWOOD AVE 27983 HAAS RD 30500 BAYVIEW 59935 9 MILE RD 7081 T ERMINGER LANE 54 WASHINGTON COURT 19935 HURON RIVER DRIVE 2929 HIDING PLACE 2373 MEADOW ST 17480 S NUNNELEY 9484 E VERMONTVILLE HWY 4542 WEBBER 6251 W GRAND BLANC RD 2274 S VASSAR RD 27334 NEWPORT 2851 WIXOH RD 17813 VENTURA COURT 2424 CARLETON WEST 472 S WAVERLY 5584 STEVENSON RD 2120 GROVENBURG 2694 HESSEL EATON RAPIDS PLYMOUTH PICKNEY ROCKFORD GRAND BLANC TRAVERSE CITY LAKE CITY GRASS LAKE PAW PAW CARO GLADSTONE HOWELL WATERFORD GAINES PARMA EASTPOINT LOWELL LAPEER GROSSE POINTE W CARLETON ROCKFORD GRAND RAPIDS STANWOOD LIVONIA COLDWATER EVART SAGINAW DEXTER JENISON WIXOH GIBRALTAR SOUTH LYON SOUTH LYON NILES ROCKWOOD MILFORD FLUSHING CLINTON TOWNSHI DIMONDALE SAGINAW SWARTZ CREEK BURTON WARREN MILFORD LIVONIA CARLETON EATON RAPIDS SHERIDAN LANSING ROCHESTER Area Phone Zip Code Code Number 48827 48170 48169 49341 48439 49686 49651 49240 49079 48723 49837 48843 48327 48436 49269 48021 49331 48446 48236 48117 49341 49505 49346 48152 49036 49631 48638 48130 49428 48393 48173 48178-8904 48178 49120 48173 48381 48433 46035 48821 48601 48473 48519 48086 48381 48152 48117 48827 48684 48911 48307 517 734 734 616 810 231 231 517 269 989 906 810 734 810 517 610 616 810 313 313 616 616 231 248 517 231 989 248 616 248 734 734 246 269 734 248 810 313 517 989 810 810 586 734 734 734 517 989 517 248 282 3448 634 6898 878 9283 240 2404 516 8783 392 1154 394 0362 392 -0304 370 6976 670 9020 260 4240 348 •6411 216 -3215 275 -3064 812 -8726 217 -5415 540 -8021 656 -2147 266 -8936 550 -9078 446 -3593 881 '2494 679 -1901 444 -6877 227 -1153 250 -1584 792 - 7036 330 -6412 560 -4283 437 - 7846 6769245 7758907 437 -8939 687 -0273 3796428 6769622 6598208 7067199 646 -6273 771 -9474 513 -6647 691 -9563 754 •5433 765 -4640 458 -2001 771 -6532 663 -6443 291 -1231 694 -5668 467 -9522 16 1/07/2010 NMTC. Inc. d/b/a Mateo Tool s Active D i s t r i b u t o r s By State f o r 2009 KHU i / U 1 Page Date Run Date :l2/31/09 i t a t e D i s t r i b u t o r Name HI HI MI Ml Ml BESSOLO, BRENT R KINNUNEN. CHRISTOPHER S JOHNSON. DAVID E WOODWARD. LARRY K ATWELL. ROBERT C * BOB* State Count: MN MN HN MN MN MN MN MN MN MN MN MN MN MN MN MN MN MN MN MN MN MN MN HN MN MN MN MN HN MN MO MO HO HO HO HO HO MO MO PODORSKI. MICHAEL A EVERSON. JAMES *SCOTT* EMERSON, DANIEL P DAY. JAMES F JONES. SPENCER M ADKISON. JAMES J RANDOL. DOUGLAS R WILLIAMS. BENJAMIN E HAMMING. JOSHUA K City 2780 WOODBINE 105 DEERVIEW TR 7322 RATHBUN RD 14150 HARVEY LANE 5630 W HCNALLY WATERFORD MARQUETTE BIRCH RUN GRASS LAKE COLEMAN 48328 49855 48415 49240 48618 248 906 810 734 989 682 •8139 249 •1720 397 -4894 646 -6259 330 -1354 11133 MADISON STREET NE 5801 4TH STREET NE 7991 CABIN DR 1117 COLLEGE AVE 26229 PHEASANT RUN 11940 OREGON AVE N 48993 210TH ST 6811 W 140TH ST 13850 62N0 AVE N 32795 IRONWOOD DR PO BOX 7 3119 MAPLE LEAF COURT 9930 ABLE ST NE 242 1ST AVE NW 5293 BROOKS CIRCLE SE 2415 LISBON AVENUE 314 N FOURTH STREET 5270 CEDAR AVE 4168 DEMPSEY AVE SW 2570 JACKSON ST PO BOX 1230 26283 MEADOWBROOK LANE 510 7TH AVE NW 8336 STEVENS AVE S 1072 LONE OAK LANE SW 26306 THOMAS AVE 2681 JACK PINE DR 24610 COUNTY 48 22914 FOX FIRE 5223 FLORENCE DR NW BLAINE 55434 FRIDLEY 55432 GRASSTON 55030 RED WING 55066 LINDSTROM 55045 CHAMPLIN 55316 MORRIS 56267 SAVAGE 55378 MAPLE GROVE 55311 ST JOSEPH 56374 COLOGNE 55322 LITTLE CANADA 55109 BLAINE 55434 ELBOW LAKE 56531 PRIOR LAKE 55372 LAKE ELHO 55042 CALEDONIA 55921 OWATONNA 55060 WAVERLY 55390 LITTLE CANADA 55117 INTERNATIONAL F 56649 WINONA 55987 GRAND RAPIDS 55744 BLOOMINGTON 55420 ORONOCO 55960 ELKO 55020 RUTLEOGE 55795 OSAGE 56570 COLD SPRING 56320 ROCHESTER 55901 763 763 763 651 651 612 320 216 763 320 952 651 612 218 651 651 507 507 763 651 218 507 218 952 507 612 218 218 320 507 767 -6833 228 -0914 639 -1792 380 -0472 248 -0258 868 -6242 589 -0121 259 •6683 213 -9535 266 -0900 484 -7030 583 -4417 810 -4389 770 -5845 434 -3327 777 - 7641 7253622 4511910 658 •4008 270 •1128 283 -0845 454 •1349 326 - 0039 884 •2593 280 •6110 590 -1003 372 -3684 573 -2148 685 -8174 252 - 0071 2289 KENOSHO 501 S ADAHS 701 SHOREVIEW DRIVE 105 LONE OAK 27880 HWY T 1505 MULLANPHY 447 CR 4706 201 LENSING RD 206 NE KEYSTONE DR OVERLAND RAYHORE RAYMORE SIKESTON FOREST CITY FLORISSANT POPLAR BLUFF RHINELANO LEES SUMMIT 314 816 913 573 816 314 573 573 816 330 -0051 318 -4301 708 •3547 380 - 2275 261 -4240 630 -5170 718 •1615 291 -9621 668 -2854 55 DOYLE. LYNN D GABRELCIK. THOMAS A BOWMAN, KYLE S PARADIS. KEVIN D KRONHOLM. ANDREW J PEARSON. THOMAS A BLAIR. ADAM C CASTLE. TIMOTHY L FRYKMAN. LOUIS J NELSON. RICHARD G ARNDT. DALE R SAGER, DONALD D SPANIOL. ANDREW R HAUKOS. JEREMY A HCWILLIAMS. SCOT R KLOETZKE. MARVIN HAYES. JOSEPH THORESQN, KRAIG RENS. JERALD WAHLBERG. W I L L I A H D RESCH. JAMES MURCK. JOSEPH FELIX. TERRY L KORMENDY. CAROL E DAVIDSON, PATRICK A BAKER. JEFFREY JOHNSON. WAYNE L JOHNSON. TEDDY D HUSMANN. PAUL VOLD. JIM State Count: Area Phone Zip Code Code Number Address 30 63114 64083 64083 63801 64451 63031 63901 65069 64086 17 1/07/2010 NHTC. Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State f o r 2009 rnu 1 / u i Page Date Run Date :12/31/09 State D i s t r i b u t o r Name MO HO HO MO MO MO MO MO MO HO MO HO MO MO MO NIEBRUEGGE. ROBERT E SARGENT, RICHARD 0 FRIEOLY. RODNEY DAAKE. ROGER LUEBBERT. MICHAEL INGRAM. DAVID L GOODWIN. JEFF S COSTELLO. ROBERT C COPELAND. PAUL *CATHERINE BENBOW. CHARLES E WEST. ROBERT E CUTRIGHT. HARK A WIKSTROM. JAMES R HATHEWAY. CHAD C GERLER. SCOTT E State Count MS MS MS MS HS MS MS MS MS MS MS MS MS MS MS MT HT MT MT BRAUCH. DAVE R HOLLENBECK. TYLER L OEVITT. CARY RUSSELL. MICHAEL' J City 4024 APPLE VALLEY DRIVE n i l GANTZ 2633 OBERHELHAN RD 508 HAWTHORNE DR 102 DOHMAN HOUSE LANE 576 E HIGHWAY 160 4912 ELDER RD 34422 HOLT #285 PO BOX 626 24211 SW HIDDEN VALLEY RD 6226 SW COOK CIRCLE 7 OAK DR 36000 WESTERHIER RO 264 CHICKWEED LANE 801 TRADEWINDS DR ARNOLD STEWARTSVILLE FORISTELL NIXA LOOSE CREEK LAHAR VILLA RIDGE OREGON BUCKNER PECULIAR PLATTSBURG ST PETERS SEDALIA JACKSON PERRYVILLE 63010 64490 63348 65714 65054 64759 63089 644 73 64016 64078 64477 63376 65301 63755 63775 314 816 636 417 573 417 314 660 816 616 913 636 660 573 573 960 248 398 725 897 682 223 446 210 779 980 397 668 979 547 5427 FAIN LANE 2303 NORTH PINE LEA DRIVE 11350 LANDING CT 6793 HIGHWAY 12 EAST 13569 MIDWAY RD 271 CR 1000 16255 WICKSTRAND RD 332 A CR 600 522 MONTGOMERY ST 188 S BROOKS ST 311 OLO HIGHWAY 13 226 TUDOR CIRCLE 31 LANDON CIRCLE 1151 CR 197 51 JERRY LOTT RD BELDEN JACKSON BILOXI STEENS TERRY BOONEVILLE BILOXI TUPELO WINONA PONTOTOC LUMBERTON BRANDON BYHALIA BLUE SPRINGS SUMRALL 38826 39209 39532 39766 39170 38829 39532 38801 38967 38863 39455 39042 38611 38828 39482 662 601 228 662 601 662 228 662 662 662 601 601 901 662 601 397-6906 405-4458 661-3714 251-2490 878-5697 720-6749 861-3376 687-0777 274-1314 419-3149 550-0529 695-2753 3352420 538-9992 268-0527 473 TERRENCE LOOP RD PO BOX 50372 PO BOX 50696 3985 VISTA VIEW RD BOZEMAN BILLINGS BILLINGS BILLINGS 59718 59105 59105-0696 59101 406 406 406 406 599-1133 698-8297 256-7994 252-3743 28210 27332 28278 28805 27830 27410 28540 704 919 704 828 919 *N0 631 965- 6155 776- 6216 588- 7667 298- 0554 242- 1394 PHONE*** 236- 3297 5187 9582 4099 0227 4422 3769 7069 2383 6653 7297 9000 4292 3765 0119 2168 24 BEASLEY . JEFFERY *SCOTT* HUGHES. KENNETH H TONCREY . FREDDIE L MONAHAN . KRISTIN E MCKEE . BILLY SR DODDS. VIRGIL 6 NELSON. MINDY M *t(ARL IS BACCU5. JERRY *KARL* RICHARD , JOHN S *5C0T* WALTRESS. JONATHAN W HUBBARD , JOEL D MOORE. ROY K I I I CARTER. EDWARD H SHELTON . JOHN R RANDALL . RAMON *TERRY* State Count: Area Phone Zip Code Code Number Address 15 State Count: NC NC NC NC NC NC NC HUGHES. BRADLEY L MCLENOON. JOHN LONG, CECIL REED, RONALD *OEAN* AYCOCK. ALLEN JR *GLEN* ALDRIDGE. GARY E GEIGER. HARK A 7108 BRIOLESPUR LANE CHARLOTTE 1881 CHRIS COLE RD SANFORD 7100 SONOMA LANE CHARLOTTE 15 DRIFTER TRAIL ASHEVILLE 1052 AYCOCK DAIRY FARM RD FREMONT 5806 CARRIAGE LANE GREENSBORO n o GRISMILL RD JACKSONVILLE 18 1/07/2010 NHTC, Inc. d/b/a Mateo Tools Active Distributors By State for 2009 fnu1/u 1 Page Date Run Date :12/31/09 State D i s t r i b u t o r Name NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC VANDERHOEF. LAWRENCE M ACKRISH. STEVEN S WHITTENTON, LONAL R JR FELTON. TIHOTHY R STONE, SCOTT D MARSHALL. HAROLD 0 SIMMS. DOUGLAS J JR WEISSER, CHAOWICK F HAMM, RICKY L WEAVER, JEFFREY D FLAKE. KENNETH A HATCHER, STEPHEN W HARDOIN. MATTHEW L BIENKIEVITZ. MARK T HUDGSTON. CHRISTOPHER S JACKSON. JASON H ADAMS. TRAVIS E DESIHONE. SCOTT S CAPPS. WENDLE H JR DUPONT. MARK P TETLAK. EDWARD HANEY, JAHES GAULIN, JOSEPH CLAYCOHB. MARK KENNEDY, PATRICIA *RONNIE MILAM. BRAD DUGGINS. DWIGHT WILLHOIT. ROBERT A SHENE, MICHAEL BIRCHALL. STEPHEN BALLARD, RONALD SAWYERS, LOUIS RATCLIFF. ODEN MUTO. WILLIAM *BILL* RADFORD, LARRY HOLT, WILLIAH *TRAVIS* VICKERS. KEVIN KISTLER. STEVE A GODWIN. DENNIE *TAMYKA EM GODWIN. DENNIE D RADFORD, JOHN W KENNEDY, PATRICIA TRK 2 VIGLIONE. RICHARD K VICKERS, ERIC S TEAGUE, EDDIE *GENE* State Count: ND ND PULLEN, JEROME A HILL. ALEXANDER T Area Phone Zip Code Code Number Address City 620 BIRD HAVEN LANE 724 S ELAH AVE 1093 NEIGHBORS RD PO BOX 377 8208 KNIGHTS BRIDGE RD 5810 NEWELL DR PO BOX 66 316 BRIDGETON COURT 163 SNAP ON LANE 528 OLIVIA WAY 2387 PHILLIP SUTTON LANE 830 LAMAR RD 2376 FULBRIGHT OR 6401 CROWN HILL DRIVE 1194 TUFTON PL 176 FOREST HILL RD 345 TOM CAUOLE RD 3880 STONEY CREEK DR PO BOX 36 109 PETERBOROUGH DR 8105 IRON BARK COURT 813 OLD MAGNOLIA LANE 213 WINDSOR FOREST CIRC 99 GOOSENECK RD WEST 4240 NICHOLSON ROAD 91 AMBER RD PO BOX 1311 1295 SPRING GARDEN RD 7780 BROOKDALE DRIVE 7980 CARNOSTIE DR 2916 ROSECROFT DR 4437 FRIENDSHIP PATTERSON 3990 BEN DAIL RD 631 BIRDIE LANE 2895 MEMORIAL CHURCH RD 1025 PERTH RD 6668 LEAH JUSTINE DR 1436 FIELD CIRCLE 3788 WILLIAMS ROAD 3788 WILLIAMS ROAD 530 RUFFIN RD 4240 NICHOLSON RD 257 SUNNY PATH LANE PO BOX 3001 4 LANDON RD RICHFIELD GREENSBORO DUNN DALLAS CHARLOTTE MONROE LITTLETON WILMINGTON SPARTA SELMA GREENVILLE CONCORD CONNELLY SPRING CHARLOTTE CONCORD WAYNESVILLE LEXINGTON LINCOLNTON SUGAR GROVE MOORESVILLE RALEIGH WAKE FOREST FLETCHER ROCKY POINT CAMERON TIMBERLAKE KING NEW BERN RALEIGH LAURINBURG FAYETTEVILLE BURLINGTON LA GRANGE NORWOOD KENLY TROUTHAN TRINITY HICKORY CLAREDON CLAREDON PRINCETON CAHERON STATESVILLE THOHASVILLE FAIRVIEW 28137 27403 28334 28034 28210 28112 27850 28411 28675 27576 27834 28025 28612 28227 28027 28785 27295 28092 28679 28115 27606 27587 28732 28457 28326 27583 27021 28562 9391 27616 28352 28304 27215 28551 28128 27542 28166 27370 28602 28432 28432 27569 28326 28677 27360 28730 704 336 910 704 803 704 703 910 366 919 252 704 828 704 980 828 704 781 423 508 919 919 828 910 919 336 336 252 919 910 910 336 252 704 919 704 336 828 910 910 919 919 704 336 826 2501 22ND ST SE 4424 12TH ST W MINOT WEST FARGO 58701 58078 701 837 6061 701 318 2364 719- 0220 707^ 3328 890- 0602 898- 3002 665 5416 989 2370 298 7295 619 1651 657 0250 631 6855 341 6433 706 5869 413 4998 778 0089 622 6069 421 6001 201 5663 853 3954 534 6599 930 5203 2337545 562 7124 681 0444 675 2702 4996833 364 9798 983 9683 633 2655 266 3558 266 -9880 818 •6237 222 1627 566 3596 474 •3711 284 5816 450 8913 472 0631 294 2539 653 3755 234 1335 284 1175 499 6833 657 3526 442 3944 712 7840 52 19 1/07/2010 NHIC. Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State f o r 2009 r nu i / u 1 Page Date Run Date : 12/31/09 State D i s t r i b u t o r Name ND EDINGER. SCOTT K Area Phone Zip Code Code Number Addres s City 2907 EAST AVE E BISHARCK 58501 701 258-5875 6949 EAST ASH RD 9417 MANOERSON ST 7727 N 107TH AVE 1107 SOUTH 0 ROAD 3621 432ND TRAIL 7112 N. 65TH STREET PO BOX 373 14205 SHONGASKA RO 14100 AGNEW RO FIRTH OMAHA OMAHA AURORA RUSHVILLE OMAHA CERESCO OMAHA GREENWOOD 68358 68134 68122 68618 69360 68152 68017 68112 68366 402 402 402 402 308 402 402 402 402 440 203 575 631 327 590 665 451 786 151 BURKE ROAD 67 N LOWELL ROAD 3 SUNRISE DRIVE 360 OLD PORTLAND RD 29 ROSS ST GILMANTON WINDHAM SHELBURNE FREEDOM NASHUA 03837 03087 03581 03836 03060 603 603 207 603 603 267- 1921 4265227 754- 6349 539- 2835 533- 9285 07731 08879 07860 08107 07826 06817 07748 07080 08012 07407 08322 07422 08081 07920-3503 08021 08310 07480 08050 08010 07304 08884 08055 08092 08081 08848 08004 732 908 973 856 973 732 732 732 856 201 856 215 609 908 609 856 973 609 609 201 732 609 609 856 908 609 363- 5754 599- 8363 383- 3936 287- 5467 946- 4515 991- 2145 546- 5529 539- 9257 628- 0371 665- 5013 340- 0077 806- 5480 352- 9220 306- 0677 922- 7826 207- 9540 464- 1768 290- 6655 3867746 332- 2623 2515540 3320567 294- 9375 262- 9695 996- 4321 707 -7697 State Count: NE NE NE NE NE NE NE HE NE HESTERMANN. MARVIN . GREGORY. BRYAN J RYAN. STEVEN L BERTHELSEN. OLIVER ( NELSON, TRENT A DEKAY. JERRY L SANDERS. DALE B SMITH. TONY J HILFIKER. TIMOTHY A 4216 2744 1279 7739 2237 7559 2158 1788 3622 State Count: NH NH NH NH NH VEZINA. MARC J O'SULLIVAN, JACK DUBE. VALIER HAROULES. BRYAN J KOLOCOTRONIS. ARTHUR A State Count: NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ 5 KUBALSKI. JOHN L 19 HEMLOCK ROAD HOWELL DEAfiAUJO, MICHAEL I 13 SAINT PETER DRIVE SOUTH AH80Y EVANS. JOHN E 19 RHEA RUN ROAD NEWTON ZA6AWSKI. ERIC 45 HARDING AVENUE OAKLYN OEGROAT. DANA 0 10 HIRAMS GROVE RD BRANCHVILLE CLEAVER. ROBERT S 10 DUNOAR RD EDISON ENGLAND. JOHN F 146 KINGS HWY HIDDLETOWN BERMAN. YEVGENY *ZOLTAN B 113 STERLING AVENUE SOUTH PLAINFIEL SILBEREISEN. LOIS *ERIK S 67 BRYANT RO TURNERSVILLE ZACCONE. STEPHEN 130 LINCOLN AVE ELHWOOD PARK TRAVERS. JOSEPH A 185 LAKEVIEW AVE FRANKLINVILLE STUDLEY, TIMOTHY S 225 POHATCONG RD HIGHLAND LAKES BLOCKLINGER. SAMUEL J 47 MULLEN DR SICKLERVILLE LAUSTSEN, RICHARD 5 PEACHTREE RO BASKING RIDGE BAUERS. MICHAEL T SR 24 MT CLEMENT AVE PINE HILL PAGLIUGHI. ERIC M 657 WEYMOUTH RD BUENA DURKIN. STEVEN 65 MAPLE RD WEST HILFORD SPANO. ROBERT 267 CROWS NEST RD KANAHAWKIN PALOMBI. ERNEST 616 WALTON AVE BEVERLY WA5IELESKI. CHARLES E 227 CLENDENNY AVE JERSEY CITY HICKMAN, WILLIAM *BILL* 191 MANALAPAN ROAO SPOTSWOOD METZGAR, RONALD 2 EVERGREEN TRAIL MEDFORD SHARKEY, TIMOTHY 210 COX AVE WEST CREEK RICHES. JOHN J 3 CORALBERRY DRIVE SICKLERVILLE HERVE. BRUCE 611 MILFORD HT PLEASANT R HILFORD SEIDMAN. MARC 800 SALEM COURT ATCO 20 1/07/2010 NMIU, Inc. d/b/a Mateo Tool s Acti ve D i s t r i b u t o r s By State for 2009 r 11 u J. / uX Page Date Run Date :12/31/09 State D i s t r i b u t o r Name NJ NJ NJ NJ NJ NJ NJ NJ TEREBEY. GEORGE GOLDEN. JAMES S MACALUSO, JOSEPH BEVACQUA. ANTHONY BORINO. ERIC A SEIDMAN. ADAM R DECASIEH. MARK J DOSSANTOS, ALEX H State Count: NM NM NM NM NH NM NM NM NM HM NH NM NH NH NM NH NV NV NV NV NV NV NV NV NV NV 799 HCKENOIMEN RO 220 YOUNG RD 188 WEST 27TH 466 MAMIE DR 1242 VICTOR 820 DAWN COURT 209 HOBART AVE 289 STEVENS AVE VINCENTOWN TRENTON BAYONNE BRICK UNION WILLIAMSTOWN ABSECON S AHBOY 08088-8632 08619 07002 08723 07083 08094 08201 08879 609 609 201 732 908 856 609 732 268-2894 586-4038 436-9334 920-5093 206-9796 262-8569 646-8215 904-2600 3800 N ROTH BOX 1032 12 SUGAR MAPLE 7618 CREE CIRCLE 11101 ACOMA ROAD SE #8 1616 ROBERT DALE DR NE 300 S MANCHESTER 2026 VERMONT ST NE 3309 HUNTERS HEADOWS CIRC 18 LOS CIELOS LN 800 HONDO RD SW 251 HANKS DR PO BOX 45329 2216 GARDEN RD 1851 ALIF ROAD NE 1225 GLORICTA NE HOBBS TUCUMCARI MAYHILL SANTA FE ALBUQUERQUE ALBUQUERQUE HAGERMAN ALBUQUERQUE RIO RANCHO SANTA FE RIO RANCHO LAS CRUCES RIO RANCHO RIO RANCHO RIO RANCHO ALBUQUERQUE 88240 88401 88339 87507 87123 87112 88232 87110 87144 87507 87124 88005 87124-5329 87124 87144 87112 575 575 325 505 505 505 575 505 505 505 505 575 505 505 505 505 259-9553 461-4321 665-4391 795-1502 620-2690 363-5896 626-3955 379-8081 615-4720 480-3647 730-3673 525-0156 6920686 2358665 891-1188 296-9779 HENDERSON 89074 RENO 89506 89052 HENDERSON 89408 FERNLEY NORTH LAS VEGAS 89081 89015 HENDERSON 89002 HENDERSON 89117 LAS VEGAS 89441 SPARKS 89403 DAYTON 702 775 702 775 702 702 702 702 775 775 547 972 606 846 325 564 565 869 425 842 RQNKONKOMA RIDGE KERHONKSON CORNWALL ON HUD N MASSAPEQUA FARMINGDALE HOLMES 631 631 845 645 516 516 845 467-3163 924-1739 626-0982 542-2914 721-5740 694-1341 742-6978 16 SALERA. JOHN H CARR. LLOYD R CHURCH. BRIAN W PRE5T0N. RONALD S YEE, ALLEN C LAMB, CHRISTOPHER A 2540 HUMMINGBIRD HILL AVE 11400 DEADWOOD DRIVE 516 BROKEN SHALE CIRCLE 2880 HORSESHOE LANE 3137 GANNON RIDGE AVE 240 W KIMBERLY DR 722 SCOTTSDALE VETTER. MICHAEL D 8713 PESARO OR CEFALU. SALVATORE 55 BRIDLE PATH TERRACE MOORE, GARY C COCHRAN. WILLIAH A I I I *B 519 YELLOW JACKET DR State Count: NY NY NY NY NY NY NY City 34 LOPEZ, ELUEO *LEO* BYRO. MARSHA *CODY EMP* WIGGINS. THOMAS *DAVE* TRUJILLO. ERNEST B JR GRIEGO. MARK C DANIEL. ROBERT L MOORE. JOHN D *JD* STEWART. SEAN W GRISWOLD. JUSTIN W ARAGON. ABEL CRUZ. ART L HARTLEY, JOHN R HURRAY. TERRY J SPEAR. DEAN SWARTZ. RON HENSON. JARROD S *SHANE* State Count: ALTOMARE. THOMAS J TAPPEN. ARTHUR J BRUNO. MICHAEL SHITH. ROBERT CORDOBA. JULIO C WAGNER. FRANK P BERGHOLC. BRADLEY W Area Phone Zip Code Code Number Address 0427 3332 3566 5415 5999 3194 4910 3924 6984 0490 10 191 VICTORY DRIVE 7 HARGINWOOO DRIVE 25 DECTER DR 45 CLARK AVE 341 N VIRGINIA AVE 46 HALLOCK STREET 8 ANDREAS COURT 11779 11961 12446 12520 11758 11735 12531 21 1/07/2010 NMTC, Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State for 2009 KHUi/Ul Page Date Run Date : 12/31/09 State D i s t r i b u t o r Name NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY NY BARBERIO. PIETRO *PETER* SMITH, DAVID G OSTOLSKI, CHRIS L HEALEY. STEPHEN R GIARAMITA. MARIO *FRANK G HILL. STEVEN R DIETRICH. MICHAEL P GALDIERQ. RICHARD *STEVE CHRISTENSEN. SOREN ZAVODSKY. JOSEPH M BEARDER, SCOTT & MARY - M GOETTERMAN. HOWARD J LOPEZ. ROBERT MANOR. ELLEN *CHRISTINE*J PERRY, MIKE BEADLE, PHILIP A MONDORE. RUSSELL A GRIMM. DANIEL R MARTIN, MANUEL E VILLANO. DAVID SR MIRABILE, ANTHONY ROGERS. ANDREW J SHIELDS. PAUL HACYGIN. RONALD A KOKOT. ADAM FRANK. PAUL CAPAN, BRUCE POLLOTTA. CHRISTOP HEWITT, ELWOOD 0 GAMBINO. PHILIP BACON, RUSSELL WINKELMAN. SCOTT FATIGATE, RICKY B OLDICK, JOEL H CARL. ANDREW J RIZZO, CHRISTOPHER 0 RESTMEYER. FRANK JR MEHH. CARL W SWEET, RANDY C LORY, DEIGN W VILLANO, DAVIO B I I I HORSTMANN, CHRISTIAN SANCHEZ, JOHN II TAYLOR. JEREMY M *JAY* State Count: OH OH OH RUBEL. JAHES HALL, JEFFREY D SANCHEZ, DAVID R Area Phone Zip Code Code Number Address City 25 EAST BLVD 3567 COUNTY RT 7 4594 SHISLER RD 620 MOTT RD 60-88 60TH AVE 3737 DEER MEADOW RUN 29 NORTH CANAL ST 80 INDIAN PASS 9 MAGNOLIA DR 37 TULIP TREE DR 21 SAGENDORF LANE 2776 SHADAGEE RD 21 PARKSIDE AVE 1511 CLOVE VALLEY RO 24 HARVEST WALK 282 E 96 ST APT IF 1193 US HWY 20 12 PLEASANT VIEW AVE 2903 WATCHILL AVE 310 CONCORD AVE 164-22 89TH ST 60 SHITH RO 1272 CAIN RD 112 LIDO PROMENADE WEST 53 WEED AVE 206-20 47TH AVENUE 50 DENSMORE ROAD 4 WESTWIND DRIVE 25 RIVERBENO RD 203 EVERGREEN STREET 1653 PREEMPTION ST 4052 FANCHER RD PO BOX 123 5709 STATE RT 167 622 NEW SALEH RD 3391 LINDBERGH AVE 17 PROSPECT OR NORTH 84 HURLEY RD 953 COUNTY RD 123 514 PLOSS RD 310 CONCORD AVE 53 HALLOCK ST 39 PICKWICK DR 10 DOREEN DR EAST ROCKAWAY HILLSDALE CLARENCE DUANESBURG MASPETH MACEDON GREENE STORMVILLE KINGS PARK GARNERVILLE WYANTSKILL EDEN HILLER PLACE LA GRANGEVILLE WEBSTER BROOKLYN WEST WINFIELD TROY MEDFORD OCEANSIDE HOWARD BEACH WURTSBORO YOUNGSTOWN LINDENHURST STATEN ISLAND BAYSIOE ROCHESTER ROCHESTER SAUGERTIES STATEN ISLAND GENEVA HOLLEY JOHNSBURG LITTLE FALLS VOORHEESVILLE OCEANSIDE HUNTINGTON STAT SALT POINT MAYFIELD RICHHONDVILLE OCEANSIDE FARMINGDALE COMHACK STATEN ISLAND 11518 12529 14031 12056 11378 14502 13778 12582 11754 10923 12198 14057 11764 12540 14580 11212 13491 12180 11763 11572 11414 12790 14174 11757 10306 11361 14609 14624 12477 10308 14456 14470 12843 13365 12186 11572 11746 12578 12117 12149 11572 11735 11725 10303 516 518 716 518 917 585 607 845 631 845 518 716 631 845 585 646 315 518 631 516 718 645 716 631 917 718 585 585 845 646 315 585 518 315 518 516 631 845 518 518 516 516 631 718 2876 WILLIAMSBURG CIRCLE 5454 MOONFLOWER CT 142 PARKWOOD AVENUE STOW GROVE CITY AVON LAKE 44224 43123 44012 330 676-6338 614 871-6036 440 993-4108 672 4077 610 0814 912 4358 528 2784 335 4972 732 9856 222 9416 849 4724 361 3660 947 1649 728 0552 570 0785 258 7339 380 0856 787 1529 492 2455 725 2734 461 5906 745 2901 766 2028 843 8769 888 2479 745 7249 226 6952 9921 903 4238737 266 4073 594 3513 246 8515 0781 879 3426 789 2227 638 5440 494 4656 823 3229 765 4067 536 423 2046 635 2982 863 8171 294 6525 2028 766 8790 845 921 6829 761 1967 51 22 1/07/2010 NMTC . Inc. d/b/a Mateo Tool s Active D i s t r i b u t o r s By State for 2009 Knu 1 / u1 Page Date Run Date ;12/31/09 State D i s t r i b u t o r Name OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH • OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH SZUST. DEHIAN V HOUGHTON. HARION *OALE* WRIGHT, JASON L KOTALAC, RICHARD J SNYDER, HUNTER 0 SPRANG, TODD M ANDERSON. BRIAN » PERKEY, RICHARD 0 SINYUK. ALEXANDER FISCHER, KENNETH G MORTIMER. MARK T RATHBUN, WAYNE E CAUDILL. BRIAN D GALLAUGHER. WILLIAM J *BI MCGLADE. JASON E HARTLIEB, JEFFREY H FRENCH, VINCENT J BURGER. PAUL A BRESLIN. FLOYD *SCOTT* BARNES. JOHN E STEPHENS. THEODORE E *T£D GOLLIHER. RANDY T WILLIAMS. ROGER ROACH. BILL L WROBEL. ROBERT WHEAL. BRIAN A STARLING. RICHARD G SCHNEE. FREDERICK W LA5K0WSKI. JOHN HORRIS. KURT MCCABE, MERLIN R JARRELL, ELI MALLORY. ROBERT K HATTAR, SAGER R TUREK. FRANK R STEVENS. GEORGE BQYER. TERRY A KNOP. KIMBERLY R DEMPSEY. MICHAEL W SCHWAB. MATTHEW E LOWERY, MICHAEL R DAVIS, ARON G BECK, KEVIN D MORGAN. RALPH *DENNY* BOWER. W SCOTT TI8BETT5. GREGORY L WHITE, DENNIS J GROSSNICKLE , SCOTT S State Count; 51 Addres s City 10768 PEBBLE BROOK LANE 28946 SHERBROOK DR PO BOX 203 3605 GOOD ROAD 168 BACON ROAD 731 KATHRYN OR 5760 GREENLAWN RD 124 HAVENWOOD 4856 DEEP HOLLOW DR 7625 KINGMAN PL 9124 RANCHILL OR 2227 PAR DR 11037 DUNSBY DR NW 2388 LIBERTY HILL RD 1924 DRESDEN RO 809 CEDAR GROVE CR 5113 WISSMAN 10482 PLANK RD 876 CLIFF5IDE DR 4245 U S RT 40 1005 N 14TH ST I09I WINCHELL RO 3701 EAKINS RD 2965 HAMILTON SCIPIO RD 1166 LAFAYETTE Gl9 2722 N MUNCEY DRIVE 1909 LIMBACH RD 504 SUPERIOR STREET 9434 CONCORD CIRCLE 5145 BIRCHCREST 112 ASH ST 1174 DEBLIN DR 5707 NELLA AVE NW 1096 S MUSCOVY 2173 HAINES RD 5306 MAPLESBURG OR 3803 HEHPHILL RD 4730 WHITE HOUSE SPENCER 6700 QUEENS WAY 9965 BAINBRIDGE RD 11943 ORRVILLE ST NW 9250 BLADE RD 121 REGENCY CT 2470 WEST BENT OAK 7257 ZANE TRAIL 6181 SHERMAN RD 500 KENT RD 838 EILEEN DR STRONGSVILLE WICKLIFFE JUNCTION CITY SEVILLE CARROLLTON LOUDONVILLE HAMILTON ENGLEWOOD COLUMBUS LEWIS CENTER CINCINNATI AKRON UNIONTOWN CHILLICQTHE ZANESVILLE SAGAMORE HILLS TOLEDO MONTVILLE NEW CARLISLE NEW PARIS SEBRING AURORA CUYAHOGA FALLS HAHILTON MEDINA PORT CLINTON CLINTON GENOA TWINSBURG YOUNGSTOWN LYONS MILFORD NORTH CANTON LOVELAND MADISON MONCLOVA BARBERTQN MONCLOVA NORTH ROYALTON CHAGRIN FALLS HAS5ILL0N MINERVA COVINGTON NORTH CANTON CIRCLEVILLE GALENA TIPP CITY MACEDONIA Area Phone Zip Code Code Number 44149 44092 43748 44273 44615 44642 45011 45322 43228 43035 45231 44312 44685 45601 43701 44067 43615 44064 45344 45347 44672 44202 44223 45013 44256 43452 44216 43430 44087 44515 43533 45150 44720 45140 44057 43542 44203 43542 44133 44023 44647 44657 45318 44720 43113 43021 45371 44056 440 440 740 330 330 740 513 937 614 614 513 330 330 740 740 440 419 440 937 937 330 330 330 513 330 419 330 419 330 330 419 513 330 513 440 419 330 419 440 216 330 330 937 330 740 740 937 330 238 944 605 335 495 263 236 654 302 214 550 608 701 701 607 497 340 223 849 273 206 562 923 863 722 265 882 855 963 719 923 831 497 722 428 877 958 877 582 440 806 868 473 494 477 657 667 562 5400 0860 4664 3516 0677 1483 8665 4989 8129 1843 0170 8863 4229 9329 1037 7494 5712 8820 9078 5182 3560 4589 1217 0299 1512 6816 9415 3043 3946 2641 5791 3748 6149 3668 3267 0612 7454 9503 2579 4683 3681 0960 5743 1780 2015 1665 1804 9416 23 1/07/2010 NMTC. Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State for 2009 rnu1/u1 Page Date Run Date :12/31/09 State D i s t r i b u t o r Name OK OK OK OK OK OK OK OK OK OK OK OK OK OK PERRY. MARK A CARSWELL. GREGORY D HOLMES. WALTER L ZEILER I I . WILLIE E CORNELIUS. JIMMIE L JR TABER. MICHAEL E • BALDWIN. GREGORY L OLSON, ROBERT T KING. HARK A PHILLIPS. JAY MOORE, DONALD J ELSTON. ROBERT L REYNOLDS. DALE TOPPER. DAVID H State Count: OR OR OR OR OR OR OR OR OR OR OR OR OR PA PA PA PA PA PA PA PA PA PA PA PA PA PA PA PA PA FAIRISH. PETER KALCHTHALER, DANIEL D TEAMAN. TREAVOR M LAVOIE, PATRICK A HAINES. VERLE R ULSH, GLENN J WEOEHAN. TIMOTHY G RICHARDSON. THOMAS L PLATT, JACK H MANDIC. ALAN J DOUGHTY, JOHN E TYSARCZYK. STEPHEN J LOTOWSKI. JOHN SKEEN. LARRY T *TIM* ULSH, DEAN L JUMPER. CHAD L BROWN.THOMAS C City 7521 S DARLINGTON AVE 2233 MAPLE DR 408 NW 96TH STREET 1001 KERSHAW 1813 AUSTIN 14704 S HARVEY 506 SW 3RD ST 1616 CALIFORNIA 44 NE 51ST ST SUITE 02 8397 E 580 RD 6800 W CHARTER OAK ROAD 15454 E 92ND ST N 6301 E ROCK CREEK RD 142 HILLSIDE AVE TULSA MIDWEST CITY OKLAHOMA CITY MUSKOGEE OKLAHOMA CITY OKLAHOMA CITY MOORE CHICKASHA OKLAHOMA CITY CATOOSA EDMOND OWASSO NORMAN PONCA CITY 74136 73110 73114 74401 73127 73170 73160 73018 73105 74015 73003 74055 73026 74601 918 405 405 918 405 405 405 580 405 918 405 918 405 580 629-1199 808-5459 842-0496 869-2548 313-8353 921-8990 556-0466 678-5036 213-6113 2664118 341-9322 272-7623 447-3073 763-1915 6 SOUTHEAST CRESTLINE PLA 20810 YOSEHITE ST NE 21845 SW MANDON COURT 2471 BAINES BLVD 2911 SW VOLCANO CIRCLE 620 IRONWOOD DR SOUTH 7712 KINGSTON CIRCLE 4480 CORONA ST 945 V COURT 1014 NE DEWEY DR 10021 STERLING CREEK RD 6887 SW ERMINE RD 37611 SE LUSTED RD HERMISTON AURORA TUALATIN HUBBARD REDMOND SALEM WHITE CITY EUGENE COTTAGE GROVE GRANTS PASS JACKSONVILLE TERREBONNE BORING 97838 97002 97062 97032 97756 97306 97503 97404 97424 97526 97530 97760 97009 541 503 503 503 541 503 541 541 541 541 514 541 503 786 -3798 545 -0066 349 •5145 260 -1063 408 -3693 884 -6605 944 • 7900 520 -4654 335 -9638 476 -0458 899 -1040 548 -5851 781 -0768 1105 PRESTON ROAO 2610 CLARE STREET 99 CENTER ROAD 1206 SULLIVAN TRAIL 522 BURNSIDE ROAD 235 MOYERS STATION ROAD 4087 HARHANS WAY 38 WEST GREEN ST 217 PINE RD 3008 HILL RD 322 POSSUM HOLLOW RD 918 PITTSBURGH ST 3 KREPPS RD 4168 BATTLE RIDGE RD PO BOX 384 2600 IDLE RD 140 WIDDOWSON RD N VERSAILLES GLENSHAW QUARRYVILLE EASTON MCDONALD SCHUYLKILLHAVEN GLENVILLE BECHTELSVILLE WALLINGFORD SELLERSVILLE WAMPUM N VERSAILLES AMBRIDGE MCDONALD AUBURN MARYSVILLE QUARRYVILLE 15137 15116 17566 16040 15057 17972 17329 19505 19066 18960 16157 15137 15003 15057 17922 17053 17566 412 412 717 610 412 570 717 610 302 215 724 412 724 412 570 717 715 824486519330334^ 527965960383257 624 829 522 999527 773 875 14 LONG. GENE A GENTERT. HERBERT P GERKE. HEINRICH DAGGETT, TRAVIS S CONN. LOREN *BRAD* FLOCK. FRANK D GREEN, JOSEPH W WILKINSON. LEE C GABRIELSON, CARL I HICKS. RODNEY L LIGHTNER. MARSHAL A BROWN, DOUGLAS M SANDERS. PAUL D State Count: Area Phone Zip Code Code Number Address 13 3740 2065 7586 9924 7993 1378 3593 1470 9309 3809 0471 7792 5972 1488 5108 6038 0168 24 1/07/2010 NMTC, nc, d/b/a Mateo Tool s Active D i s t r i b u t o r s By State for 2009 KflUl /Oi Page Date Run Date ;12/31/09 State D i s t r i b u t o r Name PA PA PA PA PA PA PA PA PA PA PA PA PA PA PA PA PA PA PA PA PA PA PA PA PA ZIMMERMAN. MARK G GAVIN. DAVID V THURSTON. CHARLES *CHIP* GRIMSLEY, TIMOTHY HAMHAKER. DAVID R CHECCHIO. HARRY A ZINCK. FRED KOPCZA. MARK E SMITH, PAUL A TORRE. FRANK E TECONCHUK, ALAN A KEHP. BOB J GREGO, WILLIAH *TRUCK 2* ROSENBERGER, ARTHUR SATENSTEIN, NIKOL YURKOVITCH. RICHARD S RAUCO. DOUGLAS M KELLY. GEORGE A URBAN. TIMOTHY W BOUCHER. SCOTT A YINGER. GALEN A FOLEY, DAVID W NACE, CHRISTOPHER J FERN, MICHAEL L HENRY. FRANK T State Count: PR PR PR PR PR PR PR PR PR PR PR RI SC SC SC SC HOOPER. D.A. CRAIG. OERRILL *SCOTT* JONES. THOHAS M JR THOMAS. JOHN W 716 W LEXINGTON RO 420 EAST RAVINE AVE 1417 CHERRY ROAO 769 BROAD ST EXTENDED 340 NEW BLOOMFIELD RD 1138 APPLETON AVE 600 S ELMWOOD AVENUE 2535 LAMBS GAP RO 715 E ORANGE STREET 361 PATTON STREET 5 LANSING ST 344 OLD DELP ROAO 3500 JEFFERSON AVE 6468 TOLL GATE RD 824 HAPPY CREEK LANE 1050 HUDSON WAY 636 PIGEON CREEK RO 1314 BROADVIEW EAST 55 WENTZEL RD 1180 E 2ND ST 638 GLADYS DR RRl BOX 436 465 STONERIDGE RD 98 SPRING HILL LANE 20 BRYAN WYND LITITZ LANGHORNE BLUE BELL DELTA DUNCANNON BENSALEM GLENOLOEN ENOLA LANCASTER WARMINSTER N WARREN LANCASTER WASHINGTON ZIONSVILLE WEST CHESTER NAZARETH POTTSTOWN DOWNINGTOWN MOHNTON COUDERSPORT NAZARETH SCOTRUN EMHAUS LEBANON GLENMOORE Area Phone Zip Code Code Number 17543 19047 19422 17314 17020 19020 19036 17025 17602 18974 16355 17601 15301 18092 19380 18064 19465 19335 19540 16915 18064 18355 18049 17042 19343 717 215 610 410 717 215 610 717 717 215 814 717 724 610 610 610 610 610 610 814 610 570 610 717 609 626^0605 741^5537 275^1406 688^4157 8349251 6330762 4618055 7326549 3938703 957^6249 7230777 559-3379 345-3383 965--7058 696-3686 614-0950 469^2269 269^8337 223-6653 274-8460 759-7293 977-1744 966-4462 272-0844 605-0258 MANSIONES DE COAMO COAMO P 0 BOX 1093 OROCOVIS CARRETERA 734 KM 5 HM 4 I CIDRA PO BOX 523 CAYEY URB CIUDAD PRIMAVERA C l l , CIDRA PHB 440 CABO ROJO STE 108 PMB 290 GUAYNABO PMB 232 BAYAMON PO BOX 3403 JUNCOS PO BOX 103 BARCELONETA CALLE 17 #2T77 MIRADOR BA CAGUAS 00769 9301 00720 00739 00737 00739 00623 00968 00956 00777 00617 00725 787 767 787 •NO 787 787 787 787 *N0 787 787 557-7216 380-8838 473-5151 PHONE*** 613-5739 834-6848 768-2361 797-5195 PHONE*** 402-9291 399-1795 40 COLONY RD CHARLESTOWN 02813 401 364-7572 168 115 805 600 WEST COLUMBIA WALHALLA LADSON MYRTLE BEACH 29170 29691 29456 29579 803 864 843 843 11 PHELAN. RICHARD State Count: City 42 RAMOS. LUIS J RODRIGUEZ. JOSE A MELENDEZ. GABRIEL BALORICH. JOHN RIVERA. ANDRES J COLON. HECTOR DIAZ. HIGINIO M BETANCES. LUIS E JIMENEZ. HECTOR CORREA. EDGARDO CRUZ. RAMON C State Count: Address 1 E lOLEWOOD CIRCLE BUXTON LECTURE DR MERTON CT 794-0429 247-2448 425-6851 742^7201 25 1/07/2010 NMTC. Inc. d/b/a Mateo Tool s Active D i s t r i b u t o r s By State for 2009 • nuI/u i Page Date Run Date :12/31/09 itate D i s t r i b u t o r Name SC SC SC SC SC SC SC SC BROOKS. SHAWN M VAUGHN. JERRY HALL. ROBERT E SMITH. JIMMY R WRENN. JOHN CAPPS JR. RALPH *BENNY* BERRY. DAVID M MORE, GARY C State Count: SD SD SD SD SD SD TN TN TN TN TN TN TN TN TN TN TN TN TN TN TN TN TN TN TN TN TN TN TN TN TN TN TN TN TN TN City 208 HAHLET CIRCLE 800 TIOVOLI CT 2135 FLORENCE HWY 101 COY COURT 715 FAIRVIEW CHURCH RD 724 SPRINGDALE RD 1700 PET SITES RD 1897 DIBBLE RD SW GOOSE CREEK WEST COLUMBIA SUMTER SUMMERVILLE FOUNTAIN INN ROCK HILL CHAPIN AIKEN 29445 29170 29153 29483 29644 29730 29036 29801 843 803 803 843 864 803 803 803 743359495688862329932646- 6665 9868 2130 4093 7677 5241 7979 6306 2809 S CORTLAND AVE 501 HONEYSUCKLE 518 E JACKSON STREET 1801 COPPERDALE DR 503 N BROADWAY 321 5TH AVE SIOUX FALLS HARRISBURG RAPID CITY RAPID CITY CANTON WATERTOWN 57103 57032 57701 57703 57013 57201 605 605 605 605 605 605 332595415863214929- 7810 8900 2685 0825 0394 5478 5209 COLLETON WAY 226 LAMBERT LANE 1203 EVERETT DRIVE 47 BIG TREE DRIVE 1016 FLINT DRIVE 949 LEGGETT RD 545 KELLER RD 1207 HARBIN RD 2327 SOUTH HAVEN RD 100 DEVONSHIRE TRAIL 826 BASS LANE 161 COUNTY ROAD 967 7304 AUTUMN CROSSING WAY 2019 LAKEVIEW RD 2526 CAMPBELL STATION RD 1254 BAKERS WORK ROAD 139 COTHRAN RD 7020 ANDERSON LANE 4272 TROUSDALE LANE 1035 OLD OLIVER RD 2133 ASBURY RD 9480 FORESTWOOD RD 9137 HILLMAN WAY 7211 WHITE OAK VALLEY CIR 17 NEW CASTLE OR 4265 ROCKY BRANCH RD 1821 CEDAR LANE 2300 BIRD RD 75 LESLIE SCRUGGS RO 1407 SAWHILL CREEK LANE BRENTWOOD MARYVILLE CHATTANOOGA PINSON HENDERSONVILLE 6RAYSVILLE AFTON DANDRIDGE KNOXVILLE HENDERSONVILLE HT JULIET RICEVILLE BRENTWOOD SPRING HILL CULLEOKA BURNS HQHENWALD KNOXVILLE COLUMBIA WALLAND KNOXVILLE GERMANTOWN MEMPHIS MCDONALD ATOKA WALLAND NASHVILLE LENOIR CITY HUMBOLDT CORDOVA 37027 37803 37421 38366 37075 37338 37616 37725 37920 37075 37122 37370 37027 37174 38451 37029 38462 37918 38401 37886 37914 38138 38133 37353 38004 37886 37212 37771 38343 38016 615 865 423 731 615 423 423 865 865 616 615 423 615 931 931 615 931 865 931 865 865 901 901 423 901 665 615 865 731 901 371- 4262 982- 9675 827- 5893 421- 8248 429- 9591 618- 4764 972- 0215 748- 2513 617- 2146 594^ 7711 332- 1715 650- 0500 739: 8997 334- 1608 224- 0487 238- 5073 628- 3258 323- 1247 224- 9672 680- 2844 5245469 755 -4422 372- 9466 238- 9332 837- 3169 982- 5395 269- 4120 986- 4205 824- 4937 751- 0435 12 SPARS. JEFF MANNHALTER, JOSHUA L DELANEY, SEAN K HARSHALL, LEE M NELSON, DUSTIN R BOWDEN. NICHOLAS R State Count: Area Phone Zip Code Code Number Address 6 LOEB, BRIAN A SKEEN. ERIC A EDWARDS. HARK A HANCOCK. JAMES R HONEYCUTT. DENNIS J HUDSON, GREGORY J MORIN. ALAN R PAGE, RICHARD J *RICK* RHODES. GILLIS I GAMBLE, MILTON L DICKESON, SHAWN C HENDERSON. ROBERT *KEITH* ANDERSON. MITCHELL B COLLINS. JAN A DAVIDSON, NATHAN A OLIVER. SCOTT W BAKER, IRVIN P HACKLER. STEVEN R STAGGS. RONALD E DUNLAP. RONALD V HILL, DONNIE NEERGAARO. KEITH TAYLOR. ROBERT S KAYLOR, DAVID J PATTERSON, RONALD H JR DUNLAP. MICHAEL L HUNSELL. PIERRE *PETE* HAGA. HAROLD L HUCKABA. PETER M TAYLOR, BRADFORD S 26 1/07/2010 NHTC, Inc. d/b/a Mateo Tools Active Distributors By State for 2009 rnu i/u1 Run Date :12/31/09 State Distributor Name State Count; TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX Address City 17411 WATERVIEW DR 13800 LLANO DR 2708 CR 7720 1214 CACTUS FLOWER DRIVE 224 TIERRA GRANDE 1820 HERMITAGE DR 10219 WAYWARD WIND 484 CROWDER LANE 100 SILK TREE LANE 11304 PARDONERS TALE LANE 1415 COBB RANCH RD 18215 HOLLY THORN OR PO BOX 3692 2314 RAVENWOOD DR 908 SW 4TH ST 6911 CLOUD SWEPT LANE 107 RID6EVIEW DR 164 DEES TRAIL 2064 TRAILWOQD DR W 7901 PROSPER 12540 WESTERN GULL 10460 MONTANIO 3884 CR 123 1404 LONG VIEW DR 19303 REMINGTON BEND DR 3024 21ST STREET 10750 BRIAR FOREST 2 FOXBOROUGH CT 226 HARRIS DRIVE 700 MEADOW LAKE 24906 WINTERGREEN OR 9320 STATE HWY 56 2034 BLAKE AVE 1310 CASTLE HILL TRAIL 809 DALTON 9626 GOLD RUSH SPRINGS DR 9221 LANTERN CREEK 425 BRADY RD 805 CAVALIER 2399 ACR 4120 14710 GAHBLE RD 7403 RICHMOND AVE 10616 HUNTER DR 6412 STORM DR 3116 CR 805 B 10610 CATFISH LANE 6000 N KOUNTRY LOOP MONTGOMERY WEATHERFORD LUBBOCK ADKINS CIBOLO ROUND ROCK HOUSTON LONGVIEW ROUND ROCK AUSTIN PARIS TOHBALL VICTORIA GRAND PRAIRIE MORTON HOUSTON SHERMAN BRUCEVILLE BURLESON AMARILLO EL PASO NEW BRAUNFELS GAINESVILLE PEARLAND HOUSTON LUBBOCK HOUSTON HEATH SUNNYVALE LITTLE ELM MAGNOLIA SHERMAN DALLAS KINGWOOD PRINCETON TOMBALL CONROE SADLER PASADENA PALESTINE SANTA FE LUBBOCK JUSTIN WATAUGA CLEBURNE SAN ANTONIO MISSION Page Date Area Phone Zip Code Code Number 30 ROTH, LANCE D HOBBS. MICHAEL S SMITH, SAMMY G *TRK 2* PETERS. JEFF R FURLONG. CODY BOATRIGHT. STEPHEN KIBBEY. CHRISTOPHER M HOOKER. DERRICK 0 *TERM* EVANS. DONALD A CANTU. JAVIER SHERIDAN. GERALD W NELSON. MICHAEL 5 BERNAL. TIMOTHY *SCOTT* SOTO. NOE M OLGUIN. CHRISTOPHER STEWART. CARL 0 FISHER. WILLIAH E GATES, ROBERT A *BOB* FITZSIMMONS. FRANK *OALE* HALEY. WILLIAM L CARAVEO. RICHARD FAIN. MITCHELL W RELLER, JASON H MALDONADO. CHRISTOPHER MORENO. BRUCE P CHAPMAN. JERRY L MADHA. ABRAHAM A *JUSTIN SNYDER. STEVEN D HERNDON. JIMMY HOWARD. FARRELL *KELLY* TOMLINSON. JACKIE *JACK* WILBORN. DONNY E *PERRY E BLANKENSHIP. DAVID H O'ROURKE. THOMAS MOORE. JIMMIE A SCHULTZ. JAMES L CRAFT. GLENN E BRADY. JAMES H *MIKE* LOPEZ, EDMUNDO E WOODS. DONALD N *JENNIFER SPENCER. MICHAEL *SHANE* RUEBUSH. PHILLIP *DAV10* KIRK, ROBERT A GASTELUM. CARLOS F BELZ. JAMES L WALLACE. LEVI A LONGORIA, JUAN E 77356 76087 79423 78101 78108 78681 77064 75603 78664 78748 75462 77375 77903-3892 75050 79346 77066 75090 76630 76028 79119 79928 78132 76240 77581 77073 79410 77042 75032 75182 75068 77355 75090 75228 77339 75407 77375 77303 76264 77502 75803 77517 79424 76247 76148 76031 78224 78574 936 817 806 830 210 512 832 903 512 512 903 832 361 817 806 832 903 254 817 806 915 830 214 281 281 806 713 972 972 972 832 903 214 281 214 281 936 214 281 903 409 806 214 817 817 210 956 582 448 863 393 473 415 794 240 638 292 783 257 652 793 549 279 821 717 992 654 227 660 364 813 728 392 952 510 226 834 469 893 906 359 505 380 203 202 220 391 939 790 727 532 360 632 222 0664 0868 3447 9184 0112 7985 1893 9237 1971 1451 1700 0699 9023 2504 4482 2275 7523 6174 9687 8493 4443 4973 5794 0051 2606 0843 8960 9722 2843 5988 1446 7813 3176 5599 5855 4389 6348 3906 9786 0548 7899 4027 0234 2031 1749 4731 6648 27 1/07/2010 NMTC, Inc. d/b/a Mateo Tools Active Distributors By State for 2009 r nu i/u1 Page Date Run Date :12/31/09 State Distributor Name TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX GUNDERSON, PAUL E HEATON. KENNETH N BEASLEY, DANNY J POWELL, TRAVIS K GUTIERREZ. EDGAR BAZINET. ROBERT N LEAR. BRIAN A BLANTON, PAUL K REAVIS, CODY T WALLACE, ROBIN R BRINLEE. RICHARD K URQUHART, GRANT G DIXON. DAVID S INGLE, LARRY J PELLETT, THOMAS D KLINSKI, ALEX P LOPEZ, ERNESTO J PALACIOS. CHRIS R BROWN, HENRY A BREIL, STEVEN R HANCOCK. HARK A TICKNER. JEFFREY R WIESE. STACY L LOPEZ. CARHEN R *GREG GAR CESPEOES, MIGUEL A ECKERSON, MARK A FARLEY, GEOFFREY E PARKER, ELMER C DYER. MICHAEL C GONZALES. HORRIS II MORGAN. BENJAMIN L REYES. EDWARD *EDDIE* *JU RICHARDS, MIGUEL SMITH, RONALD TILLERY, CLAUDE *RAY* CARR. WILLIAM E *BILLY* * REASONOVER, OAVIO B080, STEVEN D SHERER, KIRK E MORGAN, STEVEN HUNT. MICHAEL T MCCRACKEN. LEONARD C WILKINSON. BRYANT HCMURRIAN. TONY M HAYEA. WARREN D WHITE. STEVE FRENCH, LlEF NOVAK. RICK WEISS. STEVE D GARY. CHRIS K Area Phone Address City 14515 BRACKENHURST LANE 2150 RIVER OAKS CIRCLE 802 COUNTY RD 127 837 KELLEY DR 1916 S 32ND STREET 2244 SW CR 0025 1981 BELL RD 2713 BAYBERRY CT 204 S SATTERWHITE 1690 CANYON SHORE OR 705 WISDOM DR 5304 PARK LAKE BLVD 506 MAPLE RUN 1640 CANYON CREEK DRIVE 7400 FH 1650 19438 GRACELY PARK LN 6722 JACK BEAN 1523 STONE MESA DR 5413 OLO GRAKBURY RD 13502 LANDS END 5810 INDEPENDENCE CIRCLE 101 SUGARBERRY AVE 29903-DOBBIN HUFSHITH RD 13558 MASON CREST 8022 SHAGWOOD DRIVE 10655 W MILE 7 RD 2308 WELCH PL 2113 BLUFF CIRCLE 11462 SAGESTANLEY 1200 HILLVIEW DR 134 FINNEY OAKS LANE 105 EAST 24TH ST 3010 JACOB DR 6905 FM 775 855 FM 1632 WILLIAH CARR JR MEMBER 3119 QUAKERTOWN 201 CARRIAGE CIRCLE 1924 OAK FOREST DR PO BOX 2386 4805 APIS COURT 9050 CLEAVER LANE 209 COUNTY RD 174 PO BOX 12984 4720 BEAUMONT 3019 S SADDLEBROOK LN 461 CR 386 2048 HILLSHIRE 2203 ASPEN STREET 1231 WEEPING WILLOW HOUSTON ABILENE TUSCOLA EVERHAN MCALLEN CORSICANA IOWA PARK BRYAN WHITE OAK CANYON LAKE DEER PARK SACHSE ROUND ROCK AZLE GILMER RICHMOND SAN ANTONIO HOUSTON GRANBURY SAN ANTONIO TEXARKANA ABILENE MAGNOLIA SAN ANTONIO HOUSTON MISSION MANSFIELD SALADO HOUSTON WAXAHACHIE WEATHERFORD SAN ANGELO WYLIE LAVERNIA WOODVILLE FLINT SAN ANTONIO SHERMAN ROUND ROCK HARKER HEIGHTS EL PASO TERRELL SWEETWATER ODESSA GROVES KATY SAN ANTONIO LEWISVILLE RICHARDSON SAN ANTONIO Zip Code Code Number 77049 79605 79562 76140 78503 75110 76367 77807 75693 78133 77536- 5996 75048 78664 76020 75645 77469 78240 77073 76049 78231 75503 79602 77354 78247 77049 78573 76063 76571 77089 75165 76085 76903 75098 78121 75979 75762 78230 75092 78681 76548 79924 75160 79556 79768-•2984 77619 77494 78253 75067-•7446 75082 78232 832 325 325 817 956 903 940 979 903 512 281 469 512 817 903 281 210 832 *N0 210 903 325 281 210 832 956 817 254 281 214 817 325 817 830 409 903 210 903 512 254 915 972 325 432 409 281 830 214 214 210 577- 7793 201^ 3140 665- 4201 821- 3245 648- 3217 654- 2557 733^ 5412 255- 5917 738- 9147 417- 8B14 235- 8958 865- 8996 971- 5594 371- 1306 235- 0689 832^ 0556 643- 8671 607- 1810 PHONE*** 870- 6969 276- 5881 201- 5958 840- 0115 663- 8247 880- 7232 434- 2129 913- 8404 718- 1147 299- 6331 202- 3511 733- 7273 450- 5585 822- 8266 217- 4102 2833498 819- 0799 8277230 8922055 388- 1039 2891395 8211275 5646054 798- 3088 413- 9756 963- 1115 693- 4483 931- 9036 384^ 2120 384- 8297 490- 5461 28 1/07/2010 NMTC , Inc. d/b/a Mateo Tool s Active D i s t r i b u t o r s By State for 2009 nu 1 / u 1 Page Date Run Date :12/31/09 tate D i s t r i b u t o r Name Address City TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX 6206 ROBIN FOREST 232 EISENHOWER RD 5810 RENDON BLOODWORTH RD 810 CLARISSA PLACE 520 COUNTY RD 136 B 816 WOOD LANE 18011 L0N6CLIFFE DR 114 STONEGATE SOUTH C/0 MICKEY 6325 CLOVERGLEN LANE 5348 MILLER AVENUE 677 PR 4811 RD 607 ROBINHOOD RD 17905 DANSWORTH DR 7407 SOUTHGATE LANE 5823 LLANO AVE 6003 SPRING OAK HOLLOW PO BOX 395 3212 S MILAM 1117 HARWOOD CT 275 CR 615 105 E 24TH ST 3805 FAIRGREEN CRT 1114 CR 1077 2830 KENNING 3109 DOW CIRCLE 8750 SPRINGWOOD DR 1908 OAK BLUFF DR 7808 CRESTWOOD CT S 107 CLOVERDALE ST 2603 PATNA 108 PECAN DR 1009 LANELLE 1208 S MAIN ST 453 MOLLIE LANE 9441 PAULA DR 376 BOB WHITE 2702 DOUBLE TREE 23110 EARLMIST DR 1825 AIRLINE DRIVE, APT H 27618 FAIRWAY OAKS DR 8109 SANTA FE '17527 WARM WINDS DR 3303 91ST STREET 7048 DOVER LANE 19703 TIMBER RIDGE 215 STONEHAM LANE 9125 RUSHING RIVER 3025 IVAN HOE LANE SAN ANTONIO DENISON FT WORTH GARLAND KINGSLAND AZLE HOUSTON BOERNE BEAUMONT FT WORTH DALLAS GONZALES BRENHAM PFLUGERVILLE AUSTIN DALLAS SPRING SANGER AMARILLO CROWLEY EARLY SAN ANGELO MIDLAND FARHERSVILLE CROSBY DEER PARK MONTGOMERY CARROLLTON NORTH RICHLAND MARBLE FALLS KATY VICTORIA IOWA PARK MIDLAND ELYSIAN FIELDS CORPUS CHRISTI NEW BRAUNFELS ROUND ROCK SPRING CORPUS CHRISTI HUFFMAN AMARILLO TOMBALL LUBBOCK RICHLAND HILLS MAGNOLIA KILLEEN FT WORTH ABILENE CONNIFF. JOSEPH KING, GARY W ESTOLL, DOYLE HOLLAND. WILLIAH WEBEL, PAUL DVORAK. KEVIN REARDON. KEVIN WAYLAND. THOHAS TUCKER. LINDA SWINNEY, WILLIAH J SHERWIN, RUSSELL DECOLA. V *JIM* MAITLAND. JEFFREY M VICKERY. KENT FYQCK. MATTHEW K WOOD. MARK *WOODY* CHIPPENDALE. ROBERT MOSELEY. DALE W LEMING. ROBERT J BROWN, SAMUEL *SAM* WHEELER, GEORGE D REYES. EDDIE WHEELER, PAUL E RICHARDSON. REUEL G MOBLEY. DAVID N AISENBREY. CALVIN J *JOHN ELLIS, IRA G SMITH. ROBERT R HURTIK, STEPHEN G SCHUMAKER, DAVID B SMITH, GARY E HARWELL. ALTON 0 *DEAN* MAYFIELD, DESMOND DOMINGUEZ. RODOLFO F MORGAN. ROBERT A *BOB* DIETZ. WALTER *JOE* CRISP. ROGER L RASCH. ROBERT E BURNS. WILLIAM R *BOB* BALL, PATRICK S ROBINSON. BRYAN D SUFFIELD. BRADY A HAGLINGER. BRENT R SMITH. SAMMY *BRAD EMP* SMITH. JERRY L FELLOWS. WESLEY D WILLIAMS, RICHARD K LAFARLETT. BILLY W HCGUIRE, RUSSELL L State Count: 146 Area Phone Zip Code Code Number 78239 75020 76140 75040 78639 76020 77084 78006 77705 76123 75206 78629 77833 78660 78744 75206 77379 76266 79109 76036 76802 76903 79707 75442 77532 77536 77316 75007 76180 78654 77493 77905 76367 79701 75642 78410 78132 78681 77373 78412 77336 79110 77377 79423 76118 77355 76542 76118 79605 210 903 817 214 830 817 261 630 409 817 214 512 979 512 512 214 281 214 806 817 325 915 432 972 281 713 261 214 817 830 281 361 940 915 903 361 830 512 281 361 281 806 281 806 817 713 254 817 325 655 7615 464 0103 313 8665 808 5515 598 5881 444 6380 855 0642 249 5501 735 7524 797 0719 435 9339 844 8665 636 4786 970 4149 385 2769 826 0707 655 9855 666 1499 468 9781 714 0282 642 3984 655 3218 553 2626 674 6237 852 7968 206 3590 703 1322 597 8957 485 3848 598 4002 386 8320 648 8496 592 2407 683 6715 633 8225 242 2159 625 1860 801 6089 286 0662 774 5562 324 -3899 353 -1822 379 -4722 795 -5039 999 -2715 702 -2714 526 -0696 825 - 7072 232 -8109 29 1/07/2010 NMTC. Inc. d/b/a Mateo Tools Active Distributors By State for 2009 r 11 w 1 ' u 1 Ron Date •. 12/31/09 State D i s t r i b u t o r Name UT UT UT UT UT UT UT UT UT UT UT UT UT UT CURTIS. JOHN R SPARKS. MICHAEL 0 SAWYER. ERIC T HARMS, SCOTT A HATCH. RICHARD D REEVES. CASEY S BURKE. MICHAEL L WOLF. LYLE FOX. VERL E BEAZER. V. DARYL SARGENT. KEITH GARRISON. LEONARD NEWPORT. RICHARD D CARD. BRUCE W State Count: VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA VA Address City Page Date Area Phone Zip Code Code Number 195 WEST 100 SOUTH SALEM 84653 7941 S PALLIDUM RD WEST JORDAN 84084 1215 SOUTHWINO DR ST GEORGE 84770 13779 S BLUE ADMIRAL OR- RIVERTON 84096 480 EAST 200 NORTH CENTERVILLE 84014 3092 N 2500 W VERNAL 84078 1471 E 1800 S ST GEORGE 84790 5670 W SUNVIEW DRIVE KEARNS 84118 7942 1436 £ CHURCHILL DOWNS DR SANDY 84092 916 E ROSEFIELD LANE DRAPER 84020 229 SOUTH 1500 WEST OGDEN 84404 5850 GOLDEN OR MURRAY 84123 6872 MERRILEE CR WEST VALLEY CIT 84128 363 VALLEY VIEW DR RICHFIELD 84701 801 208 435 801 801 435 435 801 801 801 801 801 801 435 423- 1651 852- 2331 256- 1769 301^ 4174 671^ 0271 789- 9601 467- 8778 9651126 5990593 571- 0212 394- 4329 265- 2498 252- 7029 896- 8326 611 HUNTON PLACE NE 8 CARTER LANE 5200 PORTSMOUTH RD 45539 LAKESIDE OR 5715 OTTAWA ROAD 6005 CRESCENT POINT DR 507 CHAPEL ROAD 5501 MERCHANTS VIEW SQUAR 112 NORTHBROOKE AVE 13473 SHILOH LOOP 8200 IRETON RD 12903 PECAN TERRACE 9009 BIRMINGHAM DR 7200 STUBBS BRIDGE RD 9833 GORDON RD 113 WYOMING AVE 14958 GREYMONT DRIVE 1321 DARBY RUN DRIVE 621 NOTTINGHAM DR 2917 DOUBLE CHURCH RD 5109 CRABTREE PLACE 4517 FOREST HILL DR 33 WHITE OAK DR 320 GRAND VIEW LANE 767 JOHNSTON RD 23126 THOMAS WOODS TRAIL PO BOX 316 15000 LARGO VISTA OR 4202 PINEWOOD ESTATE COUR 1070 WITHERS LARUE RD 13897 LEWIS MILL WAY 2300 SPINDRIFT RD 6279 MILLWOOD DR 703 540 703 703 703 540 571 571 757 540 804 804 703 540 540 757 571 757 757 540 757 703 540 540 276 757 804 703 804 540 703 757 703 771- 9272 937- 4911 691- 0743 430 9305 631- 0680 854- 0898 220- 1201 264 7484 651 7741 220 4353 301 3164 433 8182 361 3504 846 1263 846 7922 635 8330 238 5041 482 2794 4630641 8690042 535 8133 273 6565 248 2305 955 9104 783 8677 620 9726 458 0073 328 2342 598 2436 539 1885 449 0626 496 3626 402 7420 14 CAVE, STEPHEN K PAUL, JAMES WOOORELL, THOHAS *RANDY* CAVE. JIH SHUEY, CLIFFORD BOWEN. CHARLES W ALDERTON. TIMOTHY A TESSITORE, MICHAEL R VARNEY, JOSHUA P BARNABI, ROBERT E II AN0REW5KI, STANLEY J RIZZO. TIMOTHY B PENNY, DAVIO E DECKER. ARTHUR R IV BREEOEN, TERRY *MARK* BELL. JOSEPH M JR BURKE. MICHAEL LYNN WINDELL. GERALD BROWN. ROSS TAHBOR, C STEVE ZARTMAN, RAYMOND *KERRY* CREED. WILLIAH *BILLY* HARLOW. WILLIAM R NORTHCRAFT, SCOTT FORD. HOWARD BOYCE. DANIEL MASON. CARL SCHAIBLE. DAVID KIVIKKO. DENNIS L JR HARGETT. WILLIAM * BILL* MOLITOR. BRUCE J BAIRD. KEVIN S UPHAM. ROBERT C *BOB* LEESBURG AMISSVILLE FAIRFAX STERLING CENTREVILLE ORANGE HIDDLETOWN HAYHARKET SUFFOLK KING GEORGE RICHMOND MIDLOTHIAN MANASSAS SPOTSYLVANIA SPOTSYLVANIA PORTSMOUTH CENTREVILLE CHESAPEAKE VIRGINIA BEACH STEPHEN CITY PORTSMOUTH FAIRFAX VERONA BERRYVILLE MARION ZUNI HOPEWELL HAYHARKET POWHATAN BERRYVILLE CHANTILLY VIRGINIA BEACH WARRENTON 20176 20106 22032 20165 20120 22960 22645 20169 23434 22485 23228 23112 20111 22551 22553 23701 20120 23322 23452 22655 23703 22030 24482 22611 24354 23898 23860 20159 23139 22611 20151 23451 20187 30 1/07/2010 NMIC, Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State f o r 2009 r 11 u 1 / U 1 Page Date Run Date ;12/31/09 Area Phone tate D i s t r i b u t o r Name State Count: VT VT WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WI WI WI WI WI WI WI WI ANDERSON, HAYNES T BUHLHANN, ERIC C MILLER, PAUL R ROBARGE, ROBERT J HUGHES, PAUL D KOVACS, JAMES G FINK, PETER J EBERT. CRAIG J 240 THRASHER ROAO 7395 ROUTE 113 ASCUTNEY POST MILLS 05030 05058 802 674-5626 802 333-9033 1965 HUMMINGBIRD LANE 610 RANGER OR SE 840 AMES ROAD 1219 8TH AVE NW PO BOX 2354 3061 CHUCKANUT DR 12104 N DENVER DR 7012 W VICTORIA AVE 5696 SE MAYHILL CT 1004 COMMERCIAL AVE #462 17406 SE 24TH ST 4416 PARK 25109 27TH AVE NE 606 4TH ST NE 1006 LIGHTNING WAY 5303 LIBBY ROAD NE 1513 S 73RD AVE PO BOX 1067 4924 134TH PLACE SE 3038 WASHINGTON WAY 333 N W 85TH #197 27623 SE 231ST STREET 8917 163RD ST CT E 463 BLACK HAWK LOOP 114 TREVOR LANE 7220 SW OLD CLIFTON RD PO BOX 956 2603 ROAD 56 29720 218TH PLACE SE 14417 59TH PLACE W 5643 LOCUST LANE CAMANO ISLAND OLYMPIA SELAH PUYALLUP LYNNWOOD BOW SPOKANE KENNEWICK PORT ORCHARD ANACORTES VANCOUVER SEDRO WOOLLEY ARLINGTON PUYALLUP CAMANO ISLAND OLYMPIA YAKIMA CHEWELAH SNOHOMISH LONGVIEW SEATTLE MAPLE VALLEY PUYALLUP PORT ANGELES CHEHALIS PORT ORCHARD HILTON PASCO KENT EDMONDS CASHMERE 98282 98503 98942 98371 98036 98232 99218 99336 98366 98221 98683 98284 98223 98372 98282 98506 98908 99109 98296 98632 98117 98038 98375 98362 96532 98367 96354 99301 98042 98026 98815 360 253 509 206 206 360 509 541 360 360 360 360 360 253 253 360 509 509 425 360 206 206 253 360 360 360 253 509 253 206 509 387 -3427 732 -5657 697 -9614 818 -3491 356 -1332 840 -1376 385 -7947 969 •3514 340 -5316 630 -4555 334 -2267 540 -1461 305 •7591 988 -3722 227 -5518 790 -6901 969 -5074 935 -4489 357 -9386 575 -9732 679 -3943 354 -8269 370 -0909 477 -3034 304 -0050 535 '9378 922 -7826 547 -3261 630 •3393 356 '5724 630 - 7603 PO BOX 122 2349 TALC TRAIL 3176 SKYLINE DRIVE 1525 S LAWE STREET 5525 MANITOWISH WAY 8073 DAIRY RIDGE RO 1201 SHAGBARK LANE 803 MAIN AVE WONEWOC MADISON HUBERTUS APPLETON MADISON VERONA UNION GROVE KAUKAUNA 53968 53719 53033 54915 53704 53593 53182 54130 608 608 262 920 608 608 262 920 985 -7643 845 -1738 628 -1131 830 .7941 215 -5374 220 -9816 902 -4343 426 • 3465 Zip 2 WOODINGTON. PAUL M BOELTER, KEVIN L LOWE, JAHES D *DAN* HUTCHINSON. RICHARD L ROSENBERG, KALEB I COLLIER, ROXI L *AARON CO MCCULLOCH, ROBERT J CLARK, TOD J WHYTE, MICHAEL C MORGAN. M JANE *TODD LYNN MCGRATH, MICHAEL S PACK. DAVIS J OAKLEY. DAVID M BRYAN, ROGER D LANE. JAYSON 0 WOLF, RONALD F HUTCHINS. SHAWN M GRIFFITH, GERALD L RODIN, DANIEL P LAMP. JERRY E REGULA, DAVID STOVER, LEWIS BROADHEAD. JESSE M LASHER. MATTHEW C HASHAGEN. JAY HARMAN. EARL T NEIL. DENNIS LIVEZEY. EDWARD D MARKS, KEVIN C MERRITT. BRIAN M MICHAEL. MARK A State Count: City 33 BINGHAM, EVERETT C SEVIGNY, TIHOTHY L State Count: Address 31 31 1/07/2010 1 I U i 1 NH 1 U . Inc. d/b/a Mateo Tool s Active D i s t r i b u t o r s By State for 2009 " Page Date Run Date :12/31/09 State D i s t r i b u t o r Name WI WI WI WI WI WI WI WI WI WI WI WI WI WI WI WI WI WI WI WI Ml WI WI WI WI WI WI WI WI WI WI WI WI WI WI WI WI WI WI KEARNEY. TIMOTHY S & DAWN SCHULTZ. JONATHON D MARTIN, MICHAEL K GILLIES. DAVID A JACOBSON. JAHES S MISHLER. DAVID A HOLTHEIER. RUSSELL F SERJOGINS. HELMUTH H PAULSON, RICHARD *TODO PA BARTELS. DAVID B DOWD. JEFFREY J LIND, WILLIAM J HARTIE. RICHARD *RICK* OBRIEN. JAHES H RYMARZ. JAMES J MOLDENHAUER. JEFF BELTER. STEVEN ANDERSON, PAUL N MERRITT. DALE E CORAGGIO. GUY A MOSER. GARY W DRINKMAN, KENNETH FISCHER. STEVE MUELLER. ROBERT J GRAETZ. DUANE FORMELLA, MICHAEL S BUDISH. HICHAEL RADQNSKI. NEAL BESDNEN. ROBERT J MANYO, DAVID A DIENER. ROBERT BESAW. BRADLEY K MURPHY. TERRY 6IPPLE. SCOTT A GORN. CLYDE B SCHAEFER. WAYNE SZUOAJSKI. ALAN C KLEIN. MICHAEL BACHAR. KEITH State Count: WV WV BERGOUIST. VANCE M TORCZON. MICHAEL L BOOHGARDEN. RICHARD L City Area Phone Zip Code Code Number 8546 HWY 8 AMHERST 5548 RIVER RD WAUNAKEE 884 KENDALE CT ONEIDA 810 MILLER PL LA CROSSE N106 W16184 OLD FARM GERMANTOWN N7191 TOWN FOREST RD DEERBROOK 1447 LANGLADE AVE GREEN BAY E10057 390TH AVE EAU CLAIRE 12920 24TH AVE CHIPPEWA FALLS 2526 WILDING WAY SUAHICO 3164 DAISY MAE DR OE PERE W13664 LINER RD BRANDON 251 WEST SECOND ST NEW RICHMOND 1615 13TH ST FENNIMORE 8514 STONEBROOK CIR MIDDLETON W 148 N 7497 WOODLAND DR MENOMONEE FALLS N1478 COUNTY RD X BERLIN T298 ANDERSON RD WAUSAU 1308 RUTH ST WATERTOWN N94 W24711 BARK ROAO COLGATE 1424 SHALOM DRIVE KEWASKUM E3407 COUNTY RD D MENOMONIE W248 N 7289 MICAH RD SUSSEX 16828 RIDGEVIEW DRIVE BROOKFIELD 5055 RONSMAN ROAD NEW FRANKEN 2189 S 81ST WEST ALLIS 5870 S HACKER DR WEST BEND S 83 W 23325 ARTESIAN BIG BEND 800 5T0NYBR00K LANE GREEN BAY W250 N7149 HILLSIDE RD SUSSEX 5026 WAGON WHEEL RD MANITOWOC 2243 SKYVIEW ST GREEN BAY 1065 SCHANOCK DR GREEN BAY W7289 ROSE LEN COURT MERRILL 29736 CLOVER LANE WATERFORD W 209 CHEROKEE CANYON CT SULLIVAN 3639 SCENIC RO JACKSON 7979 COUNTY HWY V MARSHFIELD 22414 31ST ST BRISTOL 54406 53597 54155 54603 53022 54424 54304 54703 54729 54173 54115 53919 54017 53809 53562 53051- 4519 54923 54403 53094 53017 53040 54751 53089 53005 54229 53219 53095 53103 54304 53069 54220 54311 54303 54452 53185 53178 53037 54449 53104 715 608 920 608 414 715 920 715 715 920 920 920 651 608 608 262 920 715 414 262 414 715 414 262 920 414 414 414 920 262 920 920 920 715 262 262 262 715 847 HC 37 BOX 240 ROUTE 1 BOX 335D MAXWELTON FAIRMONT 24957 26554 304 667- 1910 304 641- 8131 2082 SWEETWATER DRIVE 18 POPLAR RD 3711 MONTE VISTA DR LARAMIE CODY CASPER 82070 82414 82601 307 742- 2626 307 272- 7243 307 797- 1059 340- 6597 513- 8846 680- 6044 797 -4938 828- 8915 216- 5367 499- 0912 628- 5024 577 -2135 655- 0823 883- 6036 960- 4669 303- 9687 822- 6204 469- 7427 255- 2626 585- 0198 675- 6506 254- 3592 628- 2308 254- 8246 5053257 350- 8665 7817885 866- 9181 530- 3829 350- 3450 587- 8665 362^ 6889 246- 6267 682- 2076 406- 9388 680 •7971 536^ 1212 514- 4484 593- 2129 677- 0667 676- 2668 655^ 1364 47 SNEDEGAR. RONNIE L LEHMKUHLE. ROGER State Count; WY WY WY Address 2 32 1/07/2010 r nv NMTC, Inc. d/b/a Mateo Tools Active D i s t r i b u t o r s By State f o r 2009 1 I t) i Run Date :12/3l/09 State D i s t r i b u t o r Name WY WY WY WY WY WY Address TITUS. ELIZABETH I •CHRIS 3913 EAST 6TH STREET CHESHIER, TROY J PO BOX 694 STRIPP. TRAVIS S 4306 ESSEX CT SWICK. THOMAS 45 PURPLE SAGE RD #163 GANN. ROGER 3860 BROOKVIEW DR BRAY. JOHN L 1813 BILL NYE AVE State Count; 9 Total Count: 1462 City CHEYENNE SUNDANCE GILLETTE ROCK SPRINGS CASPER LARAMIE Page Date Area Phone Zip Code Code Number 82001 82729 82718 82901 82604 82070 970 605 307 307 307 307 297 -8711 430 -7375 680 -3371 362 -4595 473 -7242 742 -6174 33 1/07/2010 MATCO TOOLS FRANCHISE DISCLOSURE DOCUMENT APPENDIX C: TERMINATED DISTRIBUTORS Malco FDD'PK —- — — - •• - — — —•(i;..:i(i-0923?('>6.6 ._ _ ._ _ .__ . „_3'2yaO NMTC. Inc. d/b/a Mateo Tools D i s t r i b u t o r s Separated i n 2009 HflUl /O J. Page Date Run Date ; 12/31/09 State D i s t r i b u t o r Name AR AR AR CO KYVIK. ROBERT *TERM* 72756 72704 72143 479 644-4162 479 283-2194 501 281-2729 RIMROCK 86335 QUEEN CREEK 85242 MESA 85204 LAKE HAVASU CIT 86403 GOODYEAR 65338 MARANA 85653 85747 TUCSON 86001 FLAGSTAFF 85326 BUCKEYE 928 480 480 926 623 520 520 928 623 567 9206 229 2894 329' 0705 846 2218 624 5013 869 2092 990 7613 699 3662 386 3696 718 E MEDA AVE GLENDORA 91741 1192 MELROSE AVE CHULA VISTA 91911 2211 PEPPERTREE VISALIA 93277 1250 DOGWOOD STREET UPLAND 91784 4845 LOS ARBOLES PL FREMONT 94536 PO BOX 231 FELTON 95018 22404 S NORMANOIE AVE #15 TORRANCE 90502 1903 S BARDO VISALIA 93277 2110 CORTE CONDESA CHULA VISTA 91914 6729 VICKY AVE WEST HILLS 91307 4508 TARLETON DR SACRAMENTO 95842 44420 GALICIA DR HEMET 92544 4363 CORRIGAN DR FREMONT 94536 2024 SHIRE DR EL CAJON 92019 47 MONTECILO FOOTHILL RANCH 92610 10255 LIVE OAK AVE CHERRY VALLEY 92223 7909 ADAHS WAY BUENA PARK 90620 11092 CLOVERDALE CT RANCHO CUCAMONG 91730 1023 FELBAR AVE TORRANCE 90503 3870 ARBOR COURT CHINO HILLS 91709 426 E CASSIDY ST CARSON 90746 3014 NIKOL ST SACRAMENTO 95826 1738 HOLLYWOOD WAY B BURBANK 91505 341 E JAVELIN ST CARSON 90745 6253 HUNTER ST VENTURA 93003 7936 CENTRAL AVE CERES 95307 6393 6REYSDN WAY RIVERSIDE 92506 1565 NAPA COURT SAN JACINTO 92583 626 619 559 909 408 831 310 559 619 818 707 760 510 619 714 909 714 909 310 909 310 916 818 310 805 209 951 909 857-1188 425-1967 802-7721 262^2987 550-3069 295-1720 755-8416 972-4671 871-3758 970-1689 419-9790 994-9169 648-8138 571-2349 306-8367 721-7949 856-5919 9445699 678-5009 227-0072 329-6106 364-1770 321-0885 830-7995 701-2983 336-7762 776-0944 223-1264 6000 JOANN DRIVE 24603 S 194TH STREET 1538 E GLADE AVE 2721 N MCCULLOCH BLVD 792 N 168TH AVE 12000 N DERRINGER 10132 E PASEO SAN BRUNO 1702 S AX HANDLE WAY 2403 S 199TH AVE 9 LUCAS, JAMES J *TERM* SAMANIEGO. HENRY *TERM* ANDERSON. RANDIE L *TERM* LISKE. SEAN P *TERM* HARSHALL. CURTIS L *TERM* DEZUR. BENJAMIN 0 *TERM* KOPF AHOERSON, PRISCILLA MORRIS. BRYAN J *TERM* RODRIGUEZ. ROBERT A *TERM HART. MICHAEL L *TERM* ALQUICIRA, ALFREDO *TERM* TANNER. ALEX *TERM* *CHRI QUERNER. MARK A *TERM* PRIDGEON. MICHAEL W *TERM BENTLEY. MARC R *TERM* CHANDLER. FREDERICK W *TE MASON, ERIC J *TERH* MYERS. W ARLEY JR *TERM* PAUER. RENE *TERM* DAVIS, RICK *TERM* OKEKE, MADUKA *TERM* MEADOWS. DEAN R *TERM* TOHA. YOUSRI M *TERM* OLIVA. LORY L *TERM* KULPACA. RICHARD A *TERM* DEfiREEK JR. CHARLES E *TE JORDAN. ROBERT L *TERM* TURNER. WILLIAM C *TERH* State Count: Area Phone Zip Code Code Number 3 WEI5ENBECK. JULE *BUTCH* FRANCISCO. MARK J *TERM* QUJSHORIO, RANDALL *TERM* COSTA. MINDY L *TERM* TURNER, JAMES V *TERH* KRAUS. ROBERT A JR *TERM* CREEDON. DANIEL P *TERH* LEVINSON. CLARK *TERM* SLOAN. SCOTT A *TERM* State Count: CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA City JOHNSON. HICHAEL D *TERM* 9172 GRIMES DRIVE ROGERS DURAN. JOSEPH E *TERM* 2423 N DOUBLE SPRINGS RD FAYETTEVILLE BRADLEY. JERRY 0 *TERM* SEARCY 2263 HOLMES RD State Count: AZ AZ AZ AZ AZ AZ AZ AZ AZ Address 28 214 E COLORADO AVE BERTHOUD 80513 970 222-8874 1 1/07/2010 NMTC. Inc. d/b/a Mateo Tool s D i s t r i b u t o r s Separated i n 2009 r n u i / 01 Page Date Run Date ;12/31/09 State D i s t r i b u t o r Name CO CO CO LAWRANCE, JONELLE *TERM^ FISHBURN. MARK H *TERM* PRICE. OAVIO *TERM* Area Phone Zip Code Code Number Address City 2645 CHERRY WAY 3538 GREEN SPRINGS DR 15684 WELD CTY ROAO 18 PARKER FORT COLLINS FT LUPTON 80138 80528 80621 720 218-2369 *N0 PHONE*** 303 857-0837 PROSPECT 06712 203 758-3839 HIDDLETOWN 19709 302 376-1998 2044 MONTPELIER STREET 141 MONTEREY WAY 112 SPRING LAKE DR 8002 SM 149 ST APT B410 634 GREEN ROCK CT 13591 LINDEN DR 11309 SE 220TH TERRACE 13359 COOPER RD 6599 ESTATES DR 17208 NW 140TH STREET 244 GALL LANE 796 LAVENDER ST 7614 SW 52ND PL 7103 HALLECK ST 5 LUDLAN DR 3731 CHERRY ST NE 22621 SW 103 COURT WESTON ROYAL PALM BEAC DEBARY MIAMI APOPKA SPRING HILL HAWTHORNE SPRING HILL NORTH PORT ALACHUA LAKE WALES PALM BAY GAINESVILLE MELBOURNE MIAMI SPRINGS ST PETERSBURG MIAMI 33326 33411 32713 33193 32712 34609 32640 34609 34291 32615 33859 32909 32608 32940 33166 33704 33190 954 561 386 *N0 407 352 561 352 941 386 336 772 352 321 305 219 305 818-5309 827-7421 717-9652 PHONE*** 233-5911 263-3587 339-7808 6860208 627-9756 462-4612 861-0418 713-5306 375-8342 242-7117 888-1882 696-6266 969-9037 135 LUCYS PLACE 113 WESTWIND PKWY 6250 DUE WEST RD 425 GOLDFINCH DR 301 FONTAINE RD 154 FOLEHDORE ESTATES RO 1541 LUMBER COMPANY RD 186 TOWLER SHOALS DR 5710 OGEECHEE RD. STE 200 FAYETTEVILLE BALL GROUND KENNESAW AUGUSTA MABLETON HADDOCK TALKING ROCK LOGANVILLE SAVANNAH 30215 30107 30152 30907 30126 31033 30175 30052 31405 770 404 404 845 770 478 706 678 912 298 433 304 505 633 932 692 957 437 PO BOX 659 MAKAWAO 96768 808 443-9778 State Count: CT RIOUX. RICHARD *TRK 2* *T 8 STEPHEN COURT State Count: OE FERRELL. FRED *MIKE* *TER 326 BEECH LANE State Count: FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL FL 17 BARSE. ERIC S *TERM* DUHAMEL. HARK D *TERM* ALLEN. ROBERT *BLANE* *TE PARSLOW. HICHAEL J *TERM* CHAFIN, WILLIAM C *TERM* PERRY. WALTER T *TOHHY* * PUSCHNER. NORBERT *TERM* MONOHAN. DANIEL *GRAHAM** WHITING. MICHAEL P *TERM* State Count; HI 1 ARHBRUST. MARK *TERM* SALAHONE. ANTHONY J *TERM DINAPOLI. MICHAEL B *TERM CEBALLOS, LORETA G *TERM* JOUDREY. ELBERT *KEITH* * MANUELE. RONALD *TERM* TALAMO, JAHES *TERH* NOVAK, PETER *TERM* CORCORAN. KIEREN *TERM* RHOADS. ALAN K *TERH* STONE. GLENN *TERH* PYNE. ROBERT *TERM* BENNETT. JOHN R *TERM* WILLIAMS. LENNIE R *TERM* RIVAS. CARLOS *TERM* DONALDSON, JOSEPH D *TERM DELGADO. ANTHONY *TERM* State Count: GA GA GA GA GA GA GA GA GA 1 9 JENSEN. DOUGLAS E *TERM* State Count: 1493 5068 7038 1806 8544 1010 1145 6227 3629 1 1/07/2010 NMTC. Inc. d/b/a Mateo Tools D i s t r i b u t o r s Separated i n 2009 Page Date Run Date : 12/31/09 State D i s t r i b u t o r Name IA IA DEJONG. CHAD W *TERH* SIMMONS. TERRY W *TERM* State Count: IL IL IL IL IL IL IL IL IN IN 905 E ROBINSON STREET 1117 0 AVENUE EAST KNOXVILLE ALBIA Area Phone Zip Code Code Number 60138 52531 515 306-6873 641 932-7063 2N125 MILDRED AVE GLEN ELLYN 107 SPRINGBROOK TRAIL SOU OSWEGO 123 N 1800 EAST RO LUDLOW 22223 WHITE PINE RD KILDEER 3117 CHARLAMGNE LANE ST CHARLES 600 MEADOW LANE LEROY 1348 SYCAMORE LANE MONTGOMERY 709 N MAIN BRIGHTON 60137 60543 60949 60047 60174 61752 60538 62012 630 630 217 847 630 217 630 618 64588 COUNTY ROAD 15 4033 E 900 N GOSHEN DECATUR 46526 46733 574 875-1744 260 724-8922 663 -2939 863 •5710 202 •4998 254 -3161 927 •0163 202 -2022 885 •7233 372 -7237 8 SLABAUGH. BRUCE E *TERH* KING. ERIC L *TERM* State Count: City 2 JUTZI . MICHAEL A *TERH* STRONG. JEFFERY A *TERM* COATES. THOMAS *MIKE* *TE SALLO. DAVID J *TERM* HINZE. BLANE R *TERH* CORNWELL. BRYAN W *TERM* SEFRANEK, G ROBERT *TERM* WRIGHT, KRISTIN S *TERM* State Count: Address 2 KS KS 1693 VERMONT RD LEGG. JIH H *TERH* ROBINSON. DONNIE 0 *TERH* 1609 N BRUNSWICK State Count: 2 RANTOUL WICHITA 66079 67212 785 878-3308 316 773-4880 KY KY MASON. JESSE W *WAYNE* *T 636 OLD BELL HIGH RD 96 DONOHUE RD RITCHIE, ROGER E *TERH* PINEVILLE SHELBYVILLE 40977 40065 606 337-7210 502 834-7264 413 SPENCER AVE 3337 BETHANY ST NEW ORLEANS ERATH 70124 70533 504 834-0600 504 560-5324 4 ANDREWS ST FRAMINGHAH 01702 774 244-6225 9 THISTLE DELL COURT 13322 KEATING ST 327 HCKINNEY TOWN RD 804 HOLLYWOOD BLVD 1610 VALLEY OR OWINGS HILLS ROCKVILLE NORTH EAST CROWNSVILLE WESTHINSTER 21117 20853 21901 21032 21157 410 240 443 410 301 1706 AUGUSTA RD BOWDOIN State Count: LA LA HAGGIO. FRANK *TERM* ISTRE. CARL W *TERM* State Count: HA 1 ROSEN. ARI S *TERM* MANTZOURANIS. PANAGIOTIS ROARK. LOUIS *TERM* HOMAN. MARC T *TERM* HEGLER. LOUIS *MATT* *TER State Count: ME 2 ANDREWS. JOHN H *TERH* State Count: MD MD MD MD MD 2 5 BISSON. RAYMOND *TERM* State Count: 356-9018 793-6910 553-0999 923-0264 847-1222 1 04287 207 522-1095 1/0 7/2G10 NMTC. Inc. d/b/a Mateo Tools D i s t r i b u t o r s Separated i n 2009 r n u 1 /u1 Page Date Run Date ; 12/31/09 State D i s t r i b u t o r Name HI MI MI MI KI MI MI MI THOMA, RAYMOND J *TERM* VUKOVICH, KEN G *TERM* REEVES. SCOTT C *TERM* *R BROWN, JAMES R *TERM* TREMBLAY. ROBERT N *TERM* NOSKEY, RONALD *TERM* NADOLNEY. MARK J *TERM* TUZINOWSKI. JEFFREY P *TE State Count: HN MN MN MN HO MO MO MO MS MT ERIE ROCHESTER HILLS SOUTH LYON YPSILANTI NEWPORT NEGAUNEE PINCONNING STERLING HEIGHT 48133 46307 46178 46198 48166 49866 48650 48312 734 248 248 734 313 906 989 586 243 5245 495 2182 486. 8416 547. 1876 478 4695 458 7700 879 6545 795 5419 928 2ND SOUTH ST 12608 WHITEWOOD DR 15317 LINNET STREET NW 6442 WARE RO SAUK CENTRE BURNSVILLE ANDOVER LINO LAKES 56378 55337 55304 55014 605 952 763 651 695-8817 288-3294 370-7296 330-5349 4 NECTOR LANE 339 RAMBLING DR 4044 DAHLIA 1455 ESTATE DR VILLA RIDGE MARSHFIELD BATTLEFIELD BATES CITY 63089 65706 65619 64011 636 417 417 816 451-3992 859-2341 888-0054 690-4531 826 TRACE RD LAUREL 39443 601 425-2494 3835 VISTA VIEW LANE BILLINGS 59101 406 855-8517 4232 PROVINCE DRIVE 126 ARCH8ELL POINT LANE PO BOX 308 9112 KEM WAY 1611 LITTLE ROCK RD WILMINGTON MOORESVILLE ALEXIS CHARLOTTE CHARLOTTE 26405 28117 28006 28227 28214 910 704 704 704 704 799-5826 799-7287 346-4000 545-0116 399-7665 31 OVERPECK AVE 515 FAIRVIEW RD 632 6RINNELL AVE 18 PRESSEY ST 6 WINTERS ST 433 CARR ST RIDGEFIELD PARK GLASSBQRO TOMS RIVER HAMMONTON OAKLAND FORKED RIVER 07660 08028 08757 08037 07436 08731 201 609 732 856 201 609 726-2235 617-1490 557^0481 676-7716 337^9164 242-1741 4 JAMES, J. ROBERT *TERM* State Count: 3036 WIDDOCK STREET 176 FONTAIN BLEAU CT W 8778 PEER RD 726 MAUS 5152 POINTE AUX PEAUX 83 WILDERNESS ROAD 330 LIBBY STREET 33158 MORRISON DR 4 REIFSTECK. WILLIAM *TERM* FRANSSEN, MONTY *TERH* GOLDENBERG. MICHAEL F *TE KREILING. WAYNE *TERM* State Count: City 8 ANDERSON, CORY H *TERM* SIMMONS. GEOFFREY D *TERM STRENGE. CHRISTOPHER D *T LANGER, ANDREW J •TERM* State Count: Area Phone Zip Code Code Number Address 1 YORK, SCOTT K *TERM* State Count: NC NC NC NC NC SOFIELD, JOHN E *TERM* WERNER. OAVIO W *TERM* CASSIDY. CHARLES T *TERH* OLDENBUTTEL. PORTER W *TE EDMONSON KELLEY H *TERH* State Count: NJ NJ NJ NJ NJ NJ 5 GALARZA, ELIUD *TERM* JOHNSON, BENJAMIN J *TERM KETTMANN. JAN J *TERM* MCCORO. ANTHONY *JOE* *TE DODO. LEIGH P *TERM* CORRAO. GEORGE G *TERM * State Count: 1/07/2010 I I • i I tl NMTC. Inc. d/b/a Mateo Tools D i s t r i b u t o r s Separated i n 2009 i Page Date Run Date :12/31/09 State D i s t r i b u t o r Name NM NH Address URIOSTE. SAMUEL E *TERM* 705 BUENA VISTA ROBERTSON. JASON L *TERM* 25 GRANITE CIRCLE State Count: NV NV NY NY NV NV NV NV NV NV NV OH OH OH OH OH KOONTS. MICHAEL W *TERM* SIEG. ROBERT H *TERM* *RI CHREST. DALE A *TERK* LINABURG. JAMES B *T£RM* MCNAMARA. DAVID M *TERM* RI GOODU. ALBERT *TERM* MASTIC BOHEMIA RIDGEWOOD WEST ISLIP BOHEMIA JEFFERSON BAYVILLE BROOKLYN BOHEMIA OTEGO JAMESPORT 11950 11716 11385 11795 11716 12093 11709 11228 11716 13825 11947 704 917 917 631 631 607 516 718 631 607 631 778. 0089 328 5260 335 4971 431 3909 567 0049 652 2629 628 2811 630 5141 589 6489 988 2207 722 4168 2682 8993 6301 2614 4150 RUSHVILLE NORTH RIDGEVILL RAVENNA CUYAHOGA FALLS TOLEDO 43150 44039 44266 44221 43615 740 216 330 330 419 605 313 322 329 382 4220 NW 20TH STREET 13254 S 275TH EAST AVE 6720 NW 46TH ST RT 2 BOX 20030-10 OKLAHOMA CITY COWETA BETHANY PORUH 73107 74429 73008 74455 405 918 405 918 808-0009 4868664 787-5401 484-5774 1219 VILLA RD NEWBERG 97132-1222 503 572-5374 1308 S BAILEY ROAD 396 WINDSOR DR 607 MAPLE ST 15 CLAREHONT BLVD COATESVILLE HARLEYSVILLE EAST EARL HAVERTOWN 19320 19438 17519 19083 610 610 717 610 PO BOX 2885 RIO GRANDE 00745-2885 787 887-3583 92 MASON AVENUE PORTSHOUTH 02871 401 683-3646 PALOMINO RD NW LONGBROOK DR WALL STREET WOODWARD RD ANGOLA 1350 9250 2773 2099 9518 733-7760 945-6640 445-7758 446-6198 4 PEREIRA. WILLIAH *TERM* State Count: 203 SHINNECOCK AVE 10 KATHY LANE 483 GRANDVIEW AVE 515 KIME AVE 87 DEBBIE LEE LAME 156 ENID RD 11 BALDWIN BLVD 1037 77TH STREET 26 DEBBIE LEE LANE 1070 COUNTY HWY 6 PO BOX 1473 1 LARY, DAVID J *TERM* KATZ. GEORGE *JEFF* *TERH MARTIN, BROCKLYN L *TERM* PENDERGRASS. EARL *BUD* * State Count: PR 505 215-2503 505 604-7820 4 ECKERDT, GARY L *TERM* State Count: PA PA PA PA 87401 88201 5 MOATES, ADAM D *TERM* GARRETT. RODNEY C *TERM* PITMON. PRICE *PEPPER* *T WAGGONER. RONALD R *TERM* StateCount: OR FARMINGTON ROSWELL 11 State Count: OK OK OK OK Area Phone Zip Code Code Number 2 DIAZ. EDWARD *MARK EMP* * WHELTON. PATRICK J *TERM* CASSETTA. ROBERT J *TERM* ROSENSON. PETER *TERM* RUSSO. RONALD J *TERH* OIGREGORIO. RICHARD *TERH CONRAOI. CHARLES *TERM* BANILAS. P *PETER* *TERM* WESTENBERGER, ROBERT W *T HCGOWAN. DONALD S *TERM* MURPHY. SEAN *TERM* State Count: City 1 5 1/07/2010 NMTC. Inc. d/b/a Mateo Tools D i s t r i b u t o r s Separated i n 2009 KflUi / U l Page Date Run Date ;12/31/09 State D i s t r i b u t o r Name State Count: SC SC SC SC SC SC Area Phone Zip Code Code Number Address City 115 MARTIN BLVD 2 HEHERRIN CT 661 BRANER CT 119 MONROE ROAD 923 AUGUSTA ST 495 PIERCE RD SUMMERVILLE GREENVILLE LEESVILLE LADSON WEST COLUMBIA lANDRUM 29483 29617 29070 29456 29169 29356 843 864 803 843 803 864 224-3839 569-7592 479-7346 729-4524 739-8952 457-3089 242 ROSILAND WAY 7835 ALMAVILLE RO 8298 CARLTON ROAD 6542 POLK LANE 409 MANOR VIEW LANE 557 PETTIJOHN CREEK RD MILLINGTON ARRINGTON CHRISTIANA COLUMBIA BRENTWOOD HENRY 38053 37014 37037 38401 37027 38231 901 615 615 931 615 731 837 542 598 388 377 243 27 PHEASANT RUN ROAD 4303 MAGGIE DRIVE 201 ARROWLAKE RD 15071 CR 4018 15814 CHATHAM WOOD DR 11787 GRAND HARBOR BLVD 1012 WESTOVER LANE 5886 DE ZAVALA RD STE 102 327 CR 1227 5702 ORANGE DRIVE 2300 BRENHAM DR 252 HERRIOTT LANE 2163 N POINT PLEASANT 19803 RIVERTON RANCH DR PO BOX 584 OALHART KILLEEN WIMBERLEY KEMP AUSTIN MONTGOMERY SPRINGTOWN SAN ANTONIO QUITMAN MISSION MC KINNEY ARGYLE GLADEWATER CYPRESS STOCKDALE 79022 76549 78676 75143 78717 77356 76082 78249 75783 78572 75070 76226 75647 77433 78160 806 254 512 940 512 832 617 210 903 956 469 817 903 281 830 244 1110 291 0668 565. 1566 595 8311 431 4731 248 8800 694 9496 902 9995 850 2148 492 2322 855 4691 368. 1300 557 0391 858. 5237 996 3373 HURRICANE ROY 64737 84067 801 866-8388 801 985-8208 MONETA DAHLGREN CHESAPEAKE 24121 22448 23322 540 309-8417 540 907-6550 757 421-7428 1 HELMS. ROBERT T JR *TERM* BUXMAN. ALAN J *TERM* LABOON, WAYNDA L *SCOTT B LANCASTER. LEWIS *TERH* HESTER, JW *TERM* CARSWELL. MICHAEL *TERH* State Count: TN TN TN TN TN TN FOWLER. MICHAEL ^ SHAWN' WALLACE, JAMES E *TERM' KENNEDY, KEVIN J *TERM' BUCKNER MARVIN ' TERM* SHIRLEY J. PAUL *TERM' BENSON. DAVID *TERM^ State Count: TX TX TX TX TX TX TX TX TX TX TX TX TX TX TX UT UT 15 HENRIE. DAVE E *TERH* 2313 SOUTH 675 WEST SARGENT. WAYNE *BUD* M *T 3915 W 5700 S State Count: VA VA VA 6 AARON. KURT 0 *TERM* ALMEN. JOHN W *TERM* BROWN. STEVE T *TERM* RELLER. LOIS A *JON RELLE REEB, JEFF *TERM* CHAPMAN. RODRICK "BUTCH' DUMONT. DUSTIN V *TERM* BRUGMAN, GARY M *TERM* WALLS. SHERMAN H *HEATH* WALLACE. DELANO A *TERM* SCHULTZ, STEPHEN G *TERM* STANFORD TERRY *TERM* STUCKEY, DAVID A *TERM* CRIPPEN, SHANNON E *TERM* HODGE . JASON *TERM* State Count: 2 KRYSTYNAK. CHARLES A *TER 12254 OICKERSON MILL RO ROLLINS. TROY A *TERM* PO BOX 806 PERRY. EDWARD *DAVID* *TE 1333 BENEFIT RD State Count: 3162 5641 2467 3373 9900 4810 1/07/2010 NMTC. Inc. d/b/a Mateo Tools D i s t r i b u t o r s Separated i n 2009 rnu i / u I Page Date Run Date :12/31/09 State D i s t r i b u t o r Name WA WA WA WA WA WA WA SHITH. CHAOWICK A *TERM* WALKER. CLARENCE *JUD* *T KAVAN. DAVID B *TERM* TESTER. TRAVIS J *TERM* WHITEMARSH. TYLER A *TERH ROBERTS. VERNON *TERM* HALL. RICK J *TERM* State Count: WI WI Area Phone Zip Code Code Number Address City 9908 195 AVE EAST PO BOX 1983 2207 27TH ST SE 3100 PINEHURST PLACE 1425 S 42N0 ST 2412 200TH PLACE S W 914 BUFFALO RD BONNEY LAKE BATTLE GROUND AUBURN WENATCHEE TACOMA LYNNWOOD SELAH 98391 98604 98002 98801 98418 98036 98942 253 350 253 509 866 425 509 AUBURNOALE SOBIESKI 54412 54171 715 305-2020 920 369-0132 335-2490 606-0762 608-7656 797-3233 956-2826 712-0123 697-5584 7 TOMPKINS. RAYMOND C *TERM 5957 MARSHFIELD ST SCHWARTZ. JEFFREY T *TERH 6768 ALLEN RD State Count: 2 Total Count: 197 7 1/07/2010 NniL, Inc. d/b/a Mateo Tools Active d i s t r i b u t o r with Zero 6 Wk Avg Page - Date • Run Date :l2/31/09 State D i s t r i b u t o r Name AR CHUNN. PAUL S Address City 2 WIGTOWN LANE BELLA VISTA Area Phone Zip Code Code Number 72715 479 644-6043 22588 S COLORADO RIVER DR SONORA 95370 209 352-6228 23201 E ORCHARD PL AURORA 80015 702 937-8215 3029 KILLEARN POINT CT TALLAHASSEE 32312 850 894-5439 ATLANTA 30329 404 993-0503 ANDERSON 46011 765 623-9741 LOUISVILLE 40299 502 338-8464 4005 BEE COURT WESTMINSTER 21157 410 259-3276 8251 BRIARWOOD AVE JENISON 49428 616 560-4283 5223 FLORENCE OR NW ROCHESTER 55901 507 252-0071 109 PETERBOROUGH DR 1436 FIELD CIRCLE MOORESVILLE HICKORY 28115 28602 508 930-5203 828 294-2539 80 INDIAN PASS 4052 FANCHER RD STORMVILLE HOLLEY 12582 14470 845 849-4724 585 638-2227 State Count: CA BOUSQUET. SETH E State Count: CO MEJIA. CARLOS State Count: FL 1 SMITH. STEVEN R State Count; KY 1 MARQUEZ. JOSE *ALEX HARQU 1835 TIMOTHY DR. NE State Count: IN 1 CLOWER. CHARLES *ALLEN* State Count: GA 1 1707 MIMOSA LANE 1 HUGHES. ANTHONY *TONY* *T 10501 VINTAGE CREEK OR State Count: MD HASH. WILLIAM J *JEFF* State Count: MI 1 1 STINSON. DAVID R State Count: MN VOLO. JIM State Count: NC NC 1 DUPONT, MARK P KISTLER. STEVE A 1 State Count: NY NY GALDIERO, RICHARD *STEVE WINKELMAN. SCOTT State Count: 1 1/07/2010 NMIC. Inc. d/b/a Mateo Tools Active d i s t r i b u t o r with Zero 6 Wk Avg Run Date 12/31/09 State D i s t r i b u t o r Name OK KING, HARK A S t a t e Count: PA Area Phone Zip Code Code Number Address City 44 NE 51ST ST SUITE D2 OKLAHOMA CITY 73105 405 213-6113 140 WIDDOWSON RD QUARRYVILLE 17566 715 875-0168 WAXAHACHIE WEATHERFORD SAN ANGELO WYLIE 75165 76085 76903 75098 214 817 325 817 3092 N 2500 W VERNAL 84078 435 789-9601 29720 218TH PLACE SE KENT 98042 253 630-3393 PO BOX 694 SUNDANCE 82729 605 430-7375 1 BROWN.THOMAS C State Count; TX TX TX TX Page Date 1 1200 HILLVIEW DR GONZALES. MORRIS II 134 FINNEY OAKS LANE MORGAN. BENJAMIN L REYES. EDWARD *EDDIE* *JU 105 EAST 24rH ST 3010 JACOB DR RICHARDS, MIGUEL 202-3511 733-7273 450-5585 822-8266 State Count: UT REEVES. CASEY S State count: WA MARKS, KEVIN C State count: WY 1 CHESHIER. TROY J State count: 1 Total count: 23 1/07/2010 MATCO TOOLS FRANCHISE DISCLOSURE DOCUMENT APPENDIX D: DISTRIBUTORSHIP AGREEMENT AND EXHIBITS MATCO TOOLS DISTRIBUTORSHIP AGREEMENT BETWEEN NMTC» INC., d/b/a MATCO TOOLS 4403 Allen Road Stow, Ohio 44224 (330) 929-4949 Fa-x: (330)929-5008 AND Name(s) of DISTRIBUTOR Street State City Zip Code Area Code Telephone Area Code FAX DISTRIBUTOR NO: DATE OF DISTRIBUTORSHIP A^iR^EMI^NTAfiREEMENX -20 Malco Sfei^2QlQ Distribulorship .Agreeinenl O.'Vi-TJt^^^^ilO MATCO TOOLS DISTRIBUTORSHIP AGREEMENT INDEX Page ARTICLE 1 1.1 1.2 1.3 1.4 1.5 1.6 APPOINTMENT OF DISTRIBUTOR Grant of Distributorship List of Calls and Potential Customer List Exclusive Rights Rights Reserved by Mateo Understandings and Acknowledgments Spouse 1 1 1 2 2 2 3 ARTICLE 2 21 2.2 ARTICLE 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 TERM OF AGREEMENT; DISTRIBUTOR'S OPTION TO REACQUIRE DISTRIBUTORSHIP Term Distributor's Option to Reacquire Distributorship DISTRIBUTOR S DUTIES AND OBLIGATIONS Promotion of Distributorship Restrictions on Sales Inventory Weekly and Monthly Customer Sales Calls and Sales Meetings Time Payment Reserve Account Mateo Truck; Uniforms Computer; Software; Data New Distributor Training Program Compliance with Laws Compliance with Manual Payment Obligations Management of Distributorship Mateo's Inspection Rights Use of the Internet Substance Abuse and Drug Testing 3 3 3 3 3 3 4 4 4 4 5 5 5 5 6 6 6 6 7 ARTICLE 4 4.1 4.2 4.3 4.4 MATCO^S DUTIES New Distributor Training Program Field Training Periodic Meetings Hiring of New Operator 7 7 7 8 8 ARTICLE 5 5.1 5.2 THE PARTIES^ RELATIONSHIP Independent Contractor Financial Records and Reports 8 8 8 Malco 2iKly:010 Distributorship Agreemeni I'K ?-l2S:!i2377?.3 O:? 2-7HW2i2yil(J 5.3 5.4 5.5 Insurance Indemnification Exercise of Mateo's Judgment 8 9 9 ARTICLE 6 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 PRODUCTS Sale and Purchase of Products Prices of Products Initial Inventory Electronic Funds Transfers Standard Payment Terms Securitv Shipment No Right To Withhold or Offset Acceptance of Orders/Force Majeure Taxes Risk of Loss 9 9 9 9 9 10 10 10 10 10 10 10 ARTICLE 7 7.1 7.2 7.3 7.4 7.5 TRADEMARKS, TRADE NAMES AND PATENTS Grant of License Rights of Mateo Conditions to Use of Marks Approval of Printed Materials Defense of Actions 1 1 1 1 1 1 ARTICLE 8 ARTICLE 9 ARTICLE 10 10.1 10.2 10.3 10.4 10.5 10.6 WARRANTY 1 CONFIDENTIALITY 12 TR.ANSFER OF INTEREST Transfer of Distributorship Interest Conditions for Transfer Transfer to Corporation Security Interest Transfer by Mateo Non-Competition and Non-Solicitation Following a Transfer 12 12 12 12 12 13 13 ARTICLE 11 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 TERMINATION Termination by Distributor Mateo's Termination Rights Notice; Cure Periods Immediate Tennination Rights Obligations Upon Termination Retum of Products Warrant)' Returns Non-Solicitation of Customers; Covenant Against Competition 13 13 13 13 14 14 14 14 14 Maico S'K'^ZOJtl Distribulorship .Agreement PK ^43x.t;23775.3 03 2-7-ii'JV2yjO ARTICLE 12 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 DISPUTE RESOLUTION Arbitration Notice of Dispute: Cure Period Limitation of Actions; Waiver of Claims Powers of Arbitrator Disputes not Subject to Arbitration No Collateral Estoppel or Class Actions Limitation of Damages Waiver of Jur\- Trials Venue and Jurisdiction Injunctive Relief Severability 15 15 15 15 16 16 16 17 17 17 17 17 ARTICLE 13 MISCELLANEOUS 13.1 Waiver 13.2 Notices 18 13.3 Goveming Law 13.4 Severability 13.5 Entire Agreement 13.6 Definitions 18 18 18 18 ARTICLE 14 REPRESENTATIONS BY THE DISTRIBUTOR 14.1 Receipt of Completed Agreement and Disclosure Documents 14.2 Investigation by Distributor 14 .3 Truth and Accuracy of Representations 14.4 No Representations 14.5 No Warrant\^ of Success 19 19 19 19 19 19 Maico 2\K'92(Jlii Distributorship .Agreement PK ;:4=*;^23775.3 18 18 :^i9a/22il(J Exhibit A Exhibits Exhibit C Exhibit D Exhibit E Exhibit F E?diibit G Exhibit H Exhibit I Exhibit J E?diibit K-1 Exhibit K-2 Exhibit L E?diibit M Exhibit N Exhibit O Exhibit P E?diibit Q List of Calls and Potential Customer List [Reser\^ed| Installment Promissor>^ Note Security Agreement Distributor's Purchase-Security Agreement Credit Assignment Agreement Addendum and Guaranty to Distributor's Purchase-Security Agreement Credit Assignment Agreement Purchase Money Securit\' Agreement Purehase Money Securitv^ - Master Agreement End User's Credit Application Subject to Mateo Tools/P.S.A. Credit Approval Distributor's Purchase Security Agreement Recourse Credit Assignment Agreement Purchase Money Securit\' Agreement - New Tech Recourse Purchase Money Security Agreement - Gold Recourse Distributor Lease Agreement Shop Owner Lease Application Equipment Lease Agreement Mateo Distributor Business System Software License, Maintenance and Support Agreement and Information Form Guarantee, Indemnification, and Acknowledgment Mateo Tools Web Page Agreement Maico l>isiribiilorship Agreemeni I'KM;;N.'i23?75..1 MATCO TOOLS DISTRIBUTORSHIP AGREEMENT This Distributorship Agreement (this "Agreement") is entered into by and between NMTC, Ine. d/b/a Mateo Tools ("Mateo"), a Delaware corporation, and (the "Distributor"). RECITALS Mateo is the manufacturer and distributor of quality tools, tool boxes, and service equipment, and has developed a distinctive business system relating to the establishment and operation of Mateo mobile distributorships that sell tools, tool boxes, service equipment, and other goods and ser\'iees, including, without limitation, apparel, model cars and other collectible items, and consumables (such as mechanic's hand soaps), and such other items that Mateo may in its sole discretion offer (collectively, the "Products") to professional mechanics and other businesses which operate from a single location and purehase tools for their own use (the "'Business System''). The Business System is identified by means of certain trade names, service marks, trademarks, logos, and emblems, including, the trademarks and ser\'ice marks ''MATC0(8)" and MATCO® TOOLS (the "Marks"). Mateo desires to appoint the Distributor as an authorized Mateo mobile distributor to sell and ser\Mce the Products in a certain geographic area and the Distributor desires to serve in sueh capacity. The Distributor desires to operate a Mateo mobile distributorship in accordance with the Business System and the other standards and specifications established by Mateo, including requirements for regular weekly customer sales calls, minimum inventor)' and sales levels, communications and computer software usage and other opcraring requirements. In consideration ofthe mutual promises contained in this Agreement, the Distributor and Mateo agree and contract as follow^s: ARTICLE 1 APPOINTMENT OF DISTRIBUTOR 1.1 Grant of Pistributorship. Mateo grants the Distributor the right, and the Distributor undertakes the obligation, on the terms and conditions set forth in this Agreement to purchase, resell, and service the Products as a Mateo mobile distributor under the Business System (the "Distributorship"). L2 List of Calls and Potential Customer List. The Distributor will operate the Distributorship only at those locations identified as potential stops along the Distributor's proposed route (the "List of Calls") and in the list of Potential Customers (defined in Section 13.6) (the "Potential Customer List"). The List of Calls and Potential Customer List are identified and attached to this Agreement as Exhibit A. Unless the List of Calls and Potential Customer List is adjusted or modified by Mateo and the Distributor the Distributor may not offer or sell Products to any person, business, entity or other Potential Customer, other than those identified in the Potential Customer List. The Distributor acknowledges that: (A) as of the date of this Agreement there are a minimum of three hundred twent\-fivc (325) Potential Customers, the location of which will be identified on the List of Calls, (B) there can be no assurance that the Potential Customers identified in the Potential Customer List will actually become Customers (defined in Section 13.6) of the Distributor, and (C) the number of actual Customers or Potential Customers identified on the Potential Customer List may increase or decrease after the date of this Agreement. Malco 2iA'i92(i.lU Distribulorship PK ?-12*:.(i23775.,^ Agreenient PagC 1 ii^j^m^yiOyi.O 1.3 Exclusive Rights. The Distributorship is a business which operates principally from a vehicle, and w^hieh resells the Products to retail customers who are t\'pieally individual professional mechanics or businesses whieh operate from a single location, and who generally purehase the Products for their own use. Except as permitted under Section 1.4, and for so long as the Distributor is in compliance with this Agreement, Mateo will not operate, or grant a license or franchise to operate, a Mateo mobile distributorship that will be authorized to sell to any Potential Customers or Customers identified on the Distributor's Potential Customer List, if such Customers purchase Products at or from the business located and identified on the Potential Customer List. L4 Rights Reserved by Mateo. The Distributor acknowledges and agrees that except for the rights expressly granted to the Distributor and provided herein, Mateo retains all rights to sell, and license or authorize others to sell. Products to any customers, at any location, and through any channels or methods of distribution. Without limiting the foregoing, Mateo retains the following rights, on any terms and conditions Mateo deems advisable, and without granting Distributor anyrightstherein: 1.4.1 Mateo, and any affiliates, licensees or franchisees of Mateo, if authorized by Mateo, will have the absolute right to sell the Products, directly or indirectly, or through non-mobile distributors, incUiding_CQmme.rcial sales representatives, (A^ to industrial customers, industrial accounts, and owners of vehicle repair businesses (including businesses, entities, govemmental agencies, and others, including those whieh may be listed on the Distributor's List of Calls, but excluding the Potential Customers) who (i) have cenlral purchasing fimctions, or (ii) may purchase and/'or acquire special order products designed for multiple-party use, which are not included as part of Mateo's regular or special purehase inventorv^ list, or (iii) may purchase Products through a bidding process, such as railroads, airlines, manufacturers, governmental agencies and schools, (B) to industrial and multiple-line and multiple brand wholesale distributors who may resell sueh Products to any potential purchaser or customer, including the Customers; and (C) to vocational and training schools and programs, and to the students and employees of sueh schools and programs. 1.4.2 Mateo, and any affiliates, licensees or franchisees of Mateo, if authorized by Mateo, will have the absolute right to sell the Products through (A) mail orders, telephone orders, and the use of catalogs distributed to potential customers, (B) any current or future means of electronic commerce, including the Intemet and Mateo's website, and (C) at special and/or temporar>' venues (including race tracks, and other motor sports events). 1.4.3 Mateo, and any present orftitureaffiliates of Mateo, may manufacture and/or sell products that are the same as or similar to the Products, and Mateo's present or fiiture affiliates may sell such products directly, or indirectly through wholesalers, suppliers, distributors or others, to potential customers who are the same as or similar to the Distributor's Potential Customers and Customers. Mateo and the Distributor acknowledge and agree that Mateo has no control over the sales or distribution methods or operations of its affiliates, and that Mateo has no liability or obligations to the Distributor due to any sales or distribution activities of Mateo's affiliates. 1.5 Understandings and Acknowledgments. Mateo and the Distributor acknowledge and agree that Mateo shall have no liabilit) or obligation to the Distributor if any Customer or Potential Customer of the Distributor purchases or receives Products or competitive products through any method or channel of distribution described in Section 1.4, or othenvise rcserv^ed to Mateo. Further, the Distributor and Mateo acknowledge and agree that notwithstanding Section 1.3, Mateo has in the past granted (A) distributorships that do not have any territorial restrictions or limitations on the distributor, and (B) distributorships that have territories in whieh the distributor is not limited to selling Products to a specified number of customers. Mateo shall use its reasonable efforts to deter such distributors, and other distributors, from selling Products to customers on the Potential Customer List, but Mateo cannot and does not provide the Malco jxJt'tf20.1U Distribulorship Agreement PK -?42*;:^)23775.3 Page 2 >'i-.?"2~.f)t^3/2_gi!0 Distributor with any guaranty or assurance that sueh distributor will not offer and sell Products to the Distributor's Customers. 1.6 Spouse. Mateo, Distributor, and Spouse (defined below) acknowledge and agree that Mateo has granted the rights under this Distributorship Agreement to Distributor based in part on Distributor's application and Distributor's promise and covenant that the person identified on the signature page of this Agreement as "Distributor," will operate the Mateo Truck and conduct the daily operations of the Distributorship. Distributor has designated the person identified on the signature page of this Agreement as "Spouse," as the person who will assist Distributor with certain aspects of the operation of the Distributorship. Mateo, Distributor, and Spouse fiirther acknowledge and agree that both Distributor and Spouse are liable for the financial obligations and debts of Distributor and the Distributorship, and are responsible individually for compliance with this Agreement and for causing Distributor to comply with this Agreement. Without limiting the foregoing, Distributor and Spouse acknowledge and agree to be individually bound by all of the terms of this Agreement, including, in particular, those contained in Section 3.11, Article 9, and Section 11.8. ARTICLE 2 TERM OF AGREEMENT; DISTRIBUTOR'S OPTION TO REACQUIRE DISTRIBUTORSHIP 2.1 Term. The term of this Agreement will be for ten years, commencing on the date of this Agreement (the "Term"). This Agreement will not be enforceable until it has been signed by both the Distributor and Mateo. 2.2 Distributor's Option to Reacquire Distributorship. At the end of the Term of this Agreement, the Distributor will have the right, at his option, to reacquire the Mateo Distnbutorship to ser\'e the existing Customers identified in Exhibits A and B, for an additional ten year period, provided the Distributor complies in all respects with the following conditions: (A) the Distributor has given Mateo written notiee at least one hundred eighty days prior to the end of the Term of this Agreement of his intention to reacquire the Mateo Distributorship; (B) the Distributor has complied with all of the material terms and conditions of this Agreement, has materially complied with Mateo's operating and qualit)' standards and procedures, and has timely paid all monetar)' obligations owed to Mateo throughout the Term of this Agreement; (C) the Distributor has agreed, in writing, to make the reasonable capital expenditures necessar)' to update, modemize, and/or replace the Mateo Tmck and equipment used by him in his Mateo business to meet the then-current specifications and the general image portrayed by the Mateo Business System; (D) the Distributor agrees to sign and comply with the then-current standard Distributorship Agreement then being offered to new distributors by Mateo at the time the Distributor elects to exercise his option to reacquire the Mateo Distributorship; and (E) the Distributor and Mateo have signed ajoint and mutual general release of al.l claims each may have against the other. ARTICLE 3 DISTRIBUTOR'S DUTIES AND OBLIGATIONS 3.1 Promotion of Distributorship. The Distributor will on a fijll-time basis diligently promote, market, and work to increase Product sales, to increase the Customer base, and to provide quality service and warranty support to the Customers. 3.2 Restrictions on Sales. The Distributor will only sell Products and other merchandise approved by Mateo, and will not sell, any products, tools, equipment or other merchandise which arc competitive with any of the Products, except for items that are traded-in by the Distributor's Customers, without Mateo's prior written consent. Further, tlic Distributor shall not offer for sale, sell, or distribute any product not Mateo 2f(m[i..U) Distributorship .Agreement PK ^ 2 } 4 T H 2 3 7 7 5 . 3 PagC 3 *'-.V2".&:i3:2<t!Q ^proved in advance by Mateo (including, for example, hazardous materials, pornographic materials, or products not related to the Distributor's business) and shall discontinue the offer, sale, or distribution of products promptly upon nofice from Mateo. The Distributor may not operate the Distributorship or sell any Products to any person, entit)-, or business, or at any location not identified on the Potential Customer List, even if such Potential Customer or location is adjacent to, or near, a locafion on the Distributor's List of Calls or Potential Customer List, nor may the Distributor sell Products to any Customer of the Distributor who moves to a locafion or business not identified on the Potential Customer List. 3.3 Inventorv. The Distributor will (p.at all times maintain a minimum inventor)' of Products equal to or in excess of the New Distributor Starter Inventor)', imd will^(ii) on a weekly basis^ purchase Products from Mateo in an amount not less than 80% of the ""National Distributor Purchase Average," based on Distributor's 12-month rolling average, or^ if Distributor has been operating the Distributorship for less than 12 months, basc_d on Distributor's year-to-date averagc;_and_(iu) maintain_a_mjnimum of a 55% ratio of a calculatiQn_Qf,lhe Distribut_or_i£\:car-tcbdat^urchase_a\;cra^e divided bv the D.istrib.utQrls-vearztQzdate. sales .average 3.4 Weeklv and Monthlv Customer Sales Calls and Sales Meetings. To ensure high quality service, the Distributor will make personal sales calls to at least 80% of the Distributor's Potential Customers each week. In addition, the Distributor will make personal sales calls to each of his Potential Customers at least once each month. The Distributor will also attend at least 80% of district sales meetings that Mateo schedules in or for Distributor's district each year for its distributors and district managers. As of Januar)' 2003, Mateo expects to schedule a district sales meeting approximately once ever)' five weeks, provided, however, that Mateo may modify' the frequency and timing of the meetings upon prior noUce. Failure to comply with the weekly and monthly sales calls requirements or sales meeting requirements described in this Section 3.4 shall be a material default under this Agreement, and shall be grounds for termination under Secfion 11.2. If the Distributor fails to make personal sales calls to at least 80% of his Potentia! Customers for three weeks out of any ten week period, or if the Distributor fails to make personal sales calls to each of his Potential Customers at least once each month for three consecutive months, or if the Distributor fails to attend at least 80% of the district sales meetings in any 12-month period, then Mateo may, in lieu of termination of this Agreenient, terminate, reduce, or modif>' in all respects the Distributor's exclusive rights under Section 1.3 of this Agreement, immediately upon written nofice from Mateo to Distributor, and Mateo will have the absolute right to adjust the territor)-, the List of Calls or Potential Customers accordingly or appoint or permit one or more other distributors to sell Products to the Distributor's Potential Customers, or to sell directly or indirectly, itself or through affiliate. Products to the Distributor's Potential Customers. 3.5 Time Payment Reserve Account. Mateo acknowledges having received from the Distributor a deposit for the Distributor's Time Payment Reserve Account in the amount designated by Mateo, which will be administered in accordance with Mateo's Time Payment Reserve Account policies. 3.6 Mateo Truck; Uniforms. The Distributor must purchase or lease a Mateo Tmck, of the type and from a dealer or supplier approved by Mateo, prior to beginning operations of the Distributorship. The Distributor will use the name MATCO TOOLS®, the approved logo and all colors and graphics commonly associated with the Mateo Business System on the Mateo Tmck in accordance with Mateo's specifications. The Distributor will keep the interior and exterior of the Mateo Tmck in a clean condition and will keep the Mateo Tmck in good mechanical condition. The Mateo Tmck must be used solely for the operafion of the Distributor's Mateo business. The Distributor must wear Matco-approved unifomis, as prescribed by Mateo periodically, while operating the Distributorship. The Distributor is required to maintain a professional appearance at all times and be clean and well groomed while making calls on Potential Customers. Mateo 2;i092ai.<J Distributorship Agreement PK >4-2N.f;23775..> Page 4 i) J.47"'>P:V29Z10 3.7 Computer: Software; Data. The Distributor will purchase or lease a new (not previously owned or refurbished) computer system that complies with the specificafions established by Mateo (and that Mateo may update periodically), will sign the Mateo Distributor Business System Software License, Maintenance and Support Agreement (the "SoftAvare License Agreement") (Exhibit 0) as may be modified from time to time, and will pay the required software license fees and annual maintenance support fee set forth in the Sof^vare License Agreement. The Distributor shall comply with all of Mateo's standards and specifications for computer hardware, software, and communications, and the Distributor shall update its computer hardware, softyvare, and communications to comply with any new or changed standards or specifications established by Mateo. The Distributor agrees to use all of the features of the Mateo software in operating the Distributorship, including, without limitation, the order entrv-, inventor)', accounts receivable and reporting features. The Distributor will communicate with Mateo, and wil) transmit to, and receive documents from, Mateo, electronically, in the manner specified by Mateo in the Manual (defined below) or as directed by Mateo through the Mateo Distributor Business System. Except for the Mateo Distributor Business System software, the Distributor will have sole and complete responsibility for: (a) the acquisition, operation, maintenance and upgrading of the computer system in order to maintain compliance with Mateo's current standards as they may be modified from time to time; (b) obtaining and maintaining access to the Intemet through a subscription with an Intemet ser\'ice provider or a then-current technologically capable equivalent in accordance with Mateo's standards (whieh is currently high-speed Intemet access through cable, DSL, or high-speed cellular); (c) the manner in which the Distributor's system interfaces with Mateo's computer system and those of other third parties, and (d) any and all consequences that may arise if the Distributor's system is not properly operated, maintained, and upgraded. All data provided by the Distributor, uploaded to Mateo's system from the Distributor's system, and/or downloaded from the Distributor's system to the Mateo system is and will be owned exclusively by Mateo, and Mateo will have the right to use sueh data in any manner that Mateo deems appropriate without compensation to the Distributor. In addition, all other data created or collected by Distnbutor in cormection with the Mateo Distributor Business System, or in connection with the Distributor's operation of the business, is and will be owned exclusively by Mateo during the term of, and following termination or expiration of, the Agreement. Copies and/or originals of sueh data must be provided to Mateo upon Mateo's request. 3.8 New Distributor Training Program. The Distributor must successfiilly complete the ""New Distributor Training Program," as defined in Section 4.1, before operating the Distributorship. If the Distributor owns more than one Mateo Distributorship, then the New Distributor Training Program must be successfully completed by the Operator who will operate the Distributorship to which this Agreement relates before the Distributorship opens for business. Mateo may provide additional training and certification for its distributors from fime to time and the Distributor (and the Operator, if applicable) will attend this training and will complete the certificafion procedures designated by Mateo. At its option, Mateo may require distributors to pay all or some portion of the cost of providing any such ftiture addifional training and/or certification procedures. Distributor will be required to attend a minimum of 80% of the Mateo-scheduled district sales meetings for the Distnbutor's district in any 12-month period. 3.9 Compliance with Laws. The Distributor and all of his employees will comply with all federal, state and local laws, ordinances, mles, orders and regulations applicable to the operation of the Distributorship, including all traffic and safet)" regulations. The Distributor will file all federal and state tax retums and will timely pay all federal withholding taxes, federal insurance contribufion taxes, and all other federal, state, and local income, sales and other taxes. 3.10 Compliance with Manual. The Distributor will operate the Distributorship in conformit)- with the operating procedures and policies established in the Mateo Confidential Operafing Manual (the "Manual"), or otherwise in writing. Mateo will loan the Distributor a copy of the Manual when the Distributor begins the New Distributor Training Program. Mateo rcser\'cs the right to provide the Manual electronically or in Maieo 2iii)9201jj Distributorsliip .Agreement PK .543>,:t*23775.3 PagC 5 C^x.-i-:iW^!2^(i an electronic or computer-readable format, for example, via the Mateo Distributor Business System or another method, or on a CD. 3.11 Pavment Obligations. The Distributor will timely pay all amounts owed to Mateo for Product purchases and under any credit agreement, promissor)' note, or other agreement relating to the Distributorship. A l l payments shall be made in accordance wdth Mateo's instmctions and Operations Manual, including payments by telephone and electronic funds transfer, as described in Section 6.4 below. 3.12 Management of Distributorship. The Distributor will be responsible for managing all aspects of the Mateo Business, including sales, collection of accounts receivable, purchases, inventory^ management, and hiring of Operators, if pennitted by Mateo. The Distributor may not hire Operators, managers or drivers, or delegate any of his./her duties and obligations under this Agreement, unless approved in writing, in advance, by Mateo. Notwithstanding our Business System standards, some of which address safety, security, and related matters, these matters are solely within the Distributor's control, and the Distributor retains all responsibilit)' for these matters in the operation of the Distributorship. 3.13 Matco*s Inspection Rights. The Distributor will: (A) permit Mateo and its agents to inspect the Distributor's Mateo Tmck and observe the Distributor's business operations at any time during normal business hours, (B) cooperate with Mateo during any inspections by rendering such assistance as Mateo may reasonably request, and (C) immediately, upon written notice from Mateo take the steps necessar)' to correct any deficiencies in the Distributor's business operations. 3.14 Use of the Internet. The Distributor specifically acknowledges and agrees that any Website (as defined below) will be deemed "advertising'' under this Agreement, and will be subject to (among other things) Mateo's approval under Section 7.4 below. (As used in this Agreement, the term "Website'' means an interactive electronic document, contained in a network of computers linked by communications soflAvare, that the Distributor operates or authorizes others to operate and that refers to the Distributorship, the Marks, Mateo, and/or the Business System. The term Website includes, but is not limited to, Intemet and World Wide Web home pages.) In connection with any Website, the Distributor agrees to the following: 3.14.1 Before establishing the Website, the Distributor will submit to Mateo a sample of the Website format and information in the form and manner Mateo may reasonably require. 3.14.2 The Distributor may not establish or use the Website without Mateo's prior written approval. 3.14.3 In addifion to any other applicable requirements, the Distributor must comply with Mateo's standards and specifications for Websites as prescribed by Mateo from time to time in the Manual or othervvise in wnting. If required by Mateo, the Distributor wdll establish its Website as part of Mateo's Website and/or establish electronic links to Mateo's Website. As of the date of this Agreement, Mateo has established a Website for the entire system, and has offered Distributor a web page (or subpage) on Mateo's Website. Distributor shall execute Mateo's "Mateo Tools W^eb Page Agreement" (attached as Exhibit Q hereto), which permits Distributor to have its own subpage on Mateo's website. Distributor shall pay all appropriate fees under the Mateo Tools Web Page Agreement, and shall comply with Mateo's web policies as they may be modified from time to time. 3.14.4 If the Distributor proposes any material revision to the Website or any of the information contained in the W'ebsite, the Distributor must submit each such revision to Mateo for Mateo's prior written approval as provided above. Mateo 2^!>y>2(.lU} l>istribuiorship .Agreement PK ?42*:.tt23775.3 Page 6 if J-3.-a??3^29;:l 3.15 Substance Abuse and Drug Testing. The Distributor acknowledges and agrees that driving a Mateo Tmck in an unsafe manner, or under the influence of alcohol or illegal dmgs is potentially hazardous to the Distributor and to third parties, may physical injury to the Distributor and/or to third parties, and is a violation of law and a violation of Malco policies. In addition, such actions, and/or illegal or unauthorized operation of the Tmck and/or the Distributorship, may injure or harm the Marks and the goodwill associated with the Marks. The Distributor agrees not to drive or operate the Tmck under the influence of alcohol or illegal dmgs and not to use or ingest illegal dmgs at any time. Mateo may, from time to time, and upon notice to the Distributor, require that the Distributor submit to, and undergo periodic or random dmg and/or alcohol tesfing at a facilit)', clinic, hospital or laborator)' specified by Mateo, at a reasonable distance from the Distributor's home, within the time penod specified by Mateo, which shall not be less than two (2) days, nor more than five (5) days following Mateo's notice. Mateo will bear the cost of any tesfing or lab fees. The Distributor's failure to submit to the testing, or the failure to pass the testing and analysis will be grounds for immediate termination of the Distributorship, upon notice from Mateo. ARTICLE 4 MATCO^S DUTIES 4.1 New Distributor Training Program. Mateo will provide a classroom training program to the Distributor and, if applicable, the Operator, in Stow, Ohio, or at such other location as may be designated by Mateo, to educate, familiarize and acquaint the Distributor and the Operator with the Mateo Business Systems. The training will include instmction (and, in some instances, may include training by videotape, computer-based training modules, or interactive video) on basic business procedures, purchasing, selling and marketing techniques, customer relations, basic computer operations, and other business and marketing topics selected by Mateo. After completion of the classroom training, hands-on training on the Distributor's tmck will be provided by Mateo. The classroom training at Stow, or other designated locafion, together with the on-the-tmck training comprises Mateo's "'New Distributor Training Program." The Distributor and the Operator must successfully complete the classroom training prior to commencing business operations. The classroom training will be scheduled by Mateo in its sole discretion and will be for a minimum of sixty hours. The Distributor must pay lodging and travel costs for attendance at the classroom training program. Currently, Mateo has negotiated group lodging and meal accommodations and rates for distributors while attending the classroom training program. Lodging is located near Mateo's headquarters, Cleveland Hopkins Intemational Airport, and/or Akron-Canton Regional Airport. The Distributor will be responsible for all expenses (except for scheduled travel to and from the airport and for daily travel to and from Mateo's headquarters) incurred during classroom training programs. Lodging and meal costs will be billed directly to the Distributor's Open Purchase Account. If the Distributor or initial Operator elects to bring their respective Spouse, Mateo will charge a flat fee in the amount of two hundred ninet)'-five dollars ($295.00) for food, lodging, and local transportafion. The Distributor will pay all other expenses incurred by the Distnbutor, the Operator, and, if applicable, their Spouse(s), Operator in connection with the attendance and/or participation of the Distributor and the Operator in Mateo's New Distributor Training Program, including the Operator's salary- and fringe benefits. 4.2 Field Training. Following the Distributor's successful completion of the classroom portion of Mateo's New Distributor Training Program, a regional trainer, and/or a regional or district manager designated by Mateo (the "Designated Trainer") will assist and advise the Distributor in the operation of his Mateo business for a minimum of eighty hours over a six-week period. This assistance may include approximately one week of training prior to or after the Distributor's classroom training, approximately one week of training dunng the period that the Distributor commences sales activity, in conjunction with the Distributor's initial sales calls to Potential Customers and locations identified on the List of Calls and Potenfial Customer List, and a final phase of training during a period following the Distributor's first week of operations. The Designated Trainer will make sales calls with the Distributor and will provide training and assistance to the Distributor relating to purchasing, selling and marketing techniques, customer Malco 2 i i i & 2 i m Distributorship Agrci-'menl I'K -542jT;h23775.3 PagC 7 .-ii^.-fi93.'29/ iQ relafions, computer operations. Product knowledge and other topics relating to the Distributor's operation of the Distributorship. 4.3 Periodic Meetings. Mateo will schedule periodic meetings with Mateo personnel and other distributors for additional training. Product updates and business seminars. The Distributor must attend at least 80% ofthe Mateo-scheduled district sales meetings for its district in any 12-month period. 4.4 Hiring of New Operator. The Distributor will immediately notify Mateo if he hires a new Operator to operate the Distributorship. If the new Operator has not successfiilly completed the New Distributor Training Program prior to hiring by the Distributor, then the new Operator will be required to successfiilly complete the New Distributor Training Program prior to operating the Distributorship. Mateo will not charge a training fee for training the new Operator, but the Distributor will pay all travel, room and board, living and other expenses in connection with the new Operator's attendance and/or participation in Mateo's New Distributor Training Program. Additionally, the Distributor will pay the Operator's salar)' and fiinge benefits. ARTICLE 5 THE PARTIES' RELATIONSHIP 5.1 Independent Contractor. The Distributor is and will hold himself out to be an independent contractor, and not an agent or employee of Mateo. The Distributor is not authorized: (A) to sign in the name of Mateo (or on its behalf) any contract, check, note, or written instmment; (B) to pledge the credit of Mateo; (C) to bind or obligate Mateo in any way; or (D) to make any promise, warranty, or representation on Mateo's behalf with respect to the Products or any other matter, except as expressly authorized in writing by Mateo. 5.2 Financial Records and Reports. The Distributor will keep complete and accurate books, records, and accounts of all financial and business transactions and activities relating to the Distributorship, and will permit Mateo and its representatives to audit the books, records and accounts during regular business hours during the Term of this Agreement and for one year after termination or expiration of this Agreement. The Distributor's books, records and accounts will be in the form designated by Mateo and the Distributor will use the chart of accounts designated by Mateo for all financial statements. The Distributor will submit to Mateo, on a weekly basis, such business reports as Mateo may designate in writing. Mateo may request that the Distributor provide to Mateo, within 90 days of the Distributor's fiscal year end, annual financial statements prepared in a format that Mateo may designate. Mateo may require that the financial statements include a profit and loss statement, a balance sheet, a cash flow statement and/or other infonnation. 5.3 Insurance. The Distributor will purchase and maintain comprehensive general liability insurance covering bodily injur)^ and propert)- damage with minimum coverage of $2,000,000, and vehicle liability insurance coverage for the Mateo Truck with minimum coverage of 52,000,000, insuring both the Distributor and Mateo against any loss, liability, damage, claim or expense of any kind whatsoever, including claims for bodily injur)', personal injur)' and property damage resulting from the operation of the Distributorship or the operation of the Mateo Tmck or any other vehicle used in connection with the Distributorship. In addition, the Distributor will purchase and maintain propert)' insurance coverage with limits of at least "replacement"' cost for the Mateo Tmck and the Products, cargo, computer system and equipment used in connection with the Distributorship, and will purchase and pay for any and all other insurance required by law. All insurance policies maintained by the Distributor will: (A) name Mateo as an additional named insured, (B) provide that Mateo will receive copies of all notices of cancellation, nonrenewal or coverage change at least thirty days pnor to the effective date, and (C) require the insurance company to provide and pay for legal counsel to defend any claims or actions brought against the Distributor or Mateo. Additional requirements conceming the insurance to be obtained and maintained by Mateo ^umimo Distribulorship .Agreement PK ?45*.*23775.3 PagC 8 a,V4;:,Yj93{29nQ the Distributor, if any, may be designated by Mateo from time to time in writing. If Distributor does not obtain and maintain the proper insurance coverage, Mateo may purchase said insurance on Distributor's behalf and charge Distributor's Open Purchase Account for the premium paid. 5.4 Indemnification. The Distributor will indemnify and hold Mateo harmless from any claims, damages, judgments and losses, including attomey's fees, arising out of, from, in connection with, or as a result of the Distributor's operation of the Distributorship and the business conducted under this Agreement, the Distributor's breach of this Agreement, the Distributor's negligence, or any acts or omissions of the Distributor in connection with the operation of the Distributorship including, without limitation, claims, damages, judgments and losses arising from any unauthorized statements, representations or warranties made by the Distributor wdth respect to the Products, and those alleged to be caused by Mateo's negligence, unless (and then only to the extent that) the claims, damages, judgments, and losses are determined to be caused solely by Mateo's gross negligence or willfiil misconduct according to a final, unappealable mling issued by a court or arbitrator of competent jurisdiction. 5.5 Exercise of Mateo's Judgment. Mateo has the right to operate, develop, and change the Business System in any manner that is not specifically precluded by this Agreement. Whenever Mateo has reserved in this Agreement a nght to take or withhold an action, or to grant or decline to grant the Distributor a right to take or omit an action, except as otherwise expressly and specifically provided in this Agreement, Mateo may make its decision or exercise its rights on the basis of the information readily available to it, and Mateo's judgment of what is in its best interests and/or in the best interests of its franchise network, at the time the decision is made, without regard to whether other reasonable or even arguably preferable altemative decisions could have been made by Mateo and wdthout regard to whether Mateo's decision or the action Mateo takes promotes itsfinancialor other individual interest. ARTICLE 6 PRODUCTS 6.1 Sale and Purchase of Products. Mateo will sell and the Distributor wil! buy the Products from Mateo at the prices and on the terms established and published by Mateo from time to time. Distributor will not purchase or attempt to purchase any products, including Products, directly from vendors supplying products to Mateo. Prices and terms applicable to each order placed by the Distributor will be those in effect on the date the order is accepted by Mateo. Mateo reserves the right to add or delete Products, make changes to the Products, increase Product prices, and adjust the prices, terms, and discounts for the Products, without notice or liabilit)' to the Distributor, at any time. 6.2 Prices of Products. The Distributor will have the absolute right to determine the prices at which the Products are sold to the Distributor's Customers. If Mateo institutes and implements a discount program, incentive program, coupon program, or other product sales or marketing program, the Distributor must comply with the program, and honor all authorized coupons, gift cards, gift certificates, and incentives. 6.3 Initial Inventory. Upon execution of this Agreement, the Distributor will place an order with Mateo forthe New Distributor Starter Inventor)'. The Distributor will pay Mateo for the New Distributor Starter Inventor)- upon execution of this Agreement. Shipment of the New Distributor Starter Inventon^ will be made to the Distributor within 28 days of the date of this Agreement. 6.4 Electronic Funds Transfers. Ali payments to Mateo by the Distributor on any promissor)' note or for the purchase of Products and other goods and scrvdccs will be made by electronic funds transfers in accordance with the instmctions ter-tlie-^Matco-Pav-Bv-PhoH*^Svst^mbv Global Pa^'mc^t Svstems contained Maleo aniiyjQJ^/ Distributorship .Agreemeni PK ?4~li^.*>2371^Y Page 9 ih\^i^^ii^X29yUi in the Operations Manual. The Distributor will, from time to time during the Term of this Agreement, sign such documents as Mateo may request to authorize the Distributor's bank to transfer the payment amounts designated by the Distributor to Mateo's bank. 6.5 Standard Pavment Terms. Mateo's standard payment terms for Products sold to the Distributor are "payment due upon receipt of invoice." If the Distributor fails to make any payment to Mateo for Products in a timely manner, then Mateo may require fiill or partial payment in advance or seek other assurances of performance, including, but not limited to, reducing credit limits and/or placing the Distributor on credit hold prior to shipping any additional Products to the Distributor. 6.6 Securitv. The Distributor hereby grants Mateo a security interest in all of the Distributors Products, accounts receivable and other assets to secure any unpaid credit or financing provided to the Distributor and the Distnbutor will sign such security agreements, fmancing statements and other documents as Mateo may request to legally perfect its securit)' interest. 6.7 Shipment. The Distributor will be entitled to one shipment of Products per week from Mateo's warehouse, freight prepaid by Mateo. Mateo will ship Products "FOB" from Mateo's warehouse, freight prepaid, but the title to the Products, and the risk of loss, wdll pass to Distributor as soon as the Products are delivered to the carrier at Mateo's warehouse. Prepaid freight shipments wil! not accumulate if the Distributor fails to request a shipment for any particular week. Additional shipments, special orders, shipments to addresses other than the Distributors normal business address, and orders not made in compliance with Mateo's standard order input procedures, will be shipped from Mateo's warehouse, freight collect, unless otherwise agreed to in writing by Mateo. 6.8 No Right To Withhold or Offset. The Distributor will not withhold any payment due to Mateo because of any damage to the Products caused during transportation from Mateo to the Distributor or as a result of any legal or other claims the Distributor may allege against Mateo. The Distributor will not deduct any charges for sendees, parts, or other items from any payments due to Mateo until such charges have been agreed to in writing by Mateo. 6.9 Acceptance of Orders/Force Majeure. All Product orders placed by the Distributor will be subject to acceptance by Mateo. Mateo will, wdth reasonable diligence, execute all accepted Product orders received from the Distributor. However, Mateo expressly reser\xs the right at any time to defer, postpone or forego any shipments of Products on account of procedures or priorities established by any state, federal or local govemment or because of production failures, strikes or other labor disturbances, inabilit)' or delay in obtaining raw materials or other supplies, floods, fires, accidents, wars, incidents of terrorism or other causes or conditions beyond the control of Mateo, and Mateo w ill not be liable to the Distributor for any damages or loss of profits caused by such delay in executing or failing to execute such orders. 6-10 Taxes. The Distributor will pay, in addition to the prices specified for the Products pursuant to Mateo's then current price list, all applicable federal, state, local and govemmental taxes applicable to the Distributor's purchase of the Products. 6.11 Risk of Loss. After any Products ordered by the Distributor have been identified in such order, the risk of loss will at all times be bome by the Distributor. The Distributor will be responsible for making all claims against the carrier for damages to the Products and for all other losses. Mateo 2:i<-'y2!tLQ Distribulorship Agreement PK •?43>; 23775 J. P a g e 10 37^0^3/2!^4.!.Q ARTICLE 7 TRADEMARKS, TRADE NAMES AND PATENTS 7.1 Grant of License. Mateo grants to the Distributor a non-exclusive, non-transferable right and license to use the Marks in the normal course of operating the Distributorship. The Distributor will only use the Marks in connection with the sale of the Products sold pursuant to the Business System and the terms of this Agreement. 7.2 Rights of Mateo. The Distributor will not take any action which is adverse to Mateo's right, title or interest in the Marks or Mateo's pending or issued patents for various inventions and Products. The Distributor will not register or attempt to register the Marks or apply for any patent rights for the Products. The Distributor further agrees that nothing in this Agreement wdll give the Distributor any right, title or interest in the patent rights or Marks other than the right of use in accordance with the terms of this Agreement. The Distributor acknowledges the validity and Mateo's exclusive ownership of the Marks and the patent rights and agrees that any improvements made by the Distributor relating to the Marks or the Business System, as well as any and all goodwill resulting from the Distributor's use of the Marks pursuant to this Agreement, will inure solely to the benefit of Mateo. 7.3 Conditions to Use of Marks. The Distributor will not have the right to sublicense, assign or transfer its license to use the Marks. The Distributor will not use the Maiks as part of its corporate or other legal name, or as part of any e-mail address, domain name, or other identification of the Distributor in any electronic medium. The Distributor wdll use the Marks only in the form and manner and with the appropriate legends as prescribed from time to time by Mateo. The Distributor will modify^ its use of the Marks from time to time in the manner designated in writing by Mateo. The Distributor wil! sign all documents deemed necessar)' by Mateo to obtain or maintain protection for the Marks. 7.4 Approval of Printed Materials. The Distributor will obtain Mateo's prior written approval for the use of the Maiks in any advertising, promotional or other printed materials. 7.5 Defense of Actions. The Distributor will give Mateo immediate written notice of anv claim made by any party relating to the Marks or the Business System and will, without compensation, cooperate in all respects with Mateo in any legal proceedings involving the Marks or the Business System. Mateo will have the sole and absolute right to determine whether it will commence or defend any litigation involving the Marks or the Business System, and will, at its expense, control and conduct any litigation involving the Maiks. If the Distributor is named as a defendant in any action involving the Marks or the Business System solely because the plaintiff is alleging that the Distributor docs not have the right to use the Marks, then if the Distributor gives Mateo written notice of the action within ten days after the Distributor receives notice of the claim, Mateo will assume the defense of the action and will indemnify' and hold the Distributor harmless from any and all damages assessed .against the Distributor in connection with the action. ARTICLE 8 WARRANTY All Mateo Products arc subject to the warranty and liability limitations of the written Product warrant)' of Mateo (the "Mateo Warranty"). The Mateo Warrant)' may be amended or revised by Mateo at any time in its sole discretion. Mateo will have the right to adjust and resolve all warranty claims, either directly with the Customer or through the Distributor, as Mateo in its sole discretion may determine, and any action by Mateo with respect to warranty claims will be binding upon the Distributor. Maico 3+iiiy2UU! Di.slribulorship Agreement PK 445^.Ttt23775.3 PagC 1 1 a,i^J:.0<J3.29JJl ARTICLE 9 CONFIDENTIALITY The Distributor will not, during the Term of this Agreement or thereafter communicate, divulge or use for the benefit of any other person or entit)' any confidential information, knowledge or know-how conceming the methods of operation of a Mateo Distributorship which may be communicated to the Distributor by any employees of Mateo, or which arises by virtue of this Agreement. The Distributor will divulge such confidential information only to his employees who must have access to it in order to operate the Distributorship. The Operations Manual and any and all other information, knowledge and know-how including, without limitation, drawings, materials, equipment, technology, methods, procedures, specifications, techniques, computer software programs, computer software source codes, systems and other data which Mateo designates as confidential or proprietary' will be deemed confidential and proprietar)^ for the purposes of this Agreement. ARTICLE 10 TRANSFER OF INTEREST 10.1 Transfer of Distributorship Interest. Neither the Distributor nor any individual, partnership, or corporation which owns any interest in the Distributor will transfer any interest in this Agreement, in the Distributor, in any capital or common stock in the Distributor, or in all or substantially all of the assets of the Distributorship, including the Mateo Tmck (the "Distributorship Interest"), without the prior written consent of Mateo. 10.2 Conditions for Transfer. Mateo will not unreasonably withhold its consent to any transfer, if the following conditions are met: the Distributor is not in default under any provision of this Agreement, including payment of any financial obligations to Mateo; the Distributor and Mateo have signed a mutual general release of any and all claims against each other and their respective affiliates; it has been demonstrated to Mateo's sole satisfaction that the transferee exhibits the ability to operate the Distributorship, possesses an acceptable credit rating, has adequate financial resources and capital to operate the Distributorship in accordance with Mateo's requirements, and is not involved, directly or indirectly, in any business that is in any way competitive with a Mateo Distributorship; the transfereedistributor successfully completes the New Distributor Training Program; and the Distributor and transferee-distributor sign the legal documents necessar)' to transfer this Agreement to the transfereedistributor. Distributor and Spouse acknowledge and agree that (a) any proposed assignment or transfer to Spouse of this Agreement, the rights and responsibilities under this Agreement, or any Distributorship Interest, or (b) any proposed delegation of duties of Distributor under this Agreement, to Spouse, by contract, by operation of law, or otherwise, shall not be effective unless approved in advance, in writing by Mateo, and Mateo may rely on the conditions described in this Section 10.2, and/or any other reasonable conditions and qualifications, in determining to grant or withhold its consent of or approval to any such transfer, assignment, or delegation to Spouse. 10.3 Transfer to Corporation. The Distributor may transfer this Agreement to a corporation formed for the convenience of ownership upon prior writtennotice to Mateo, provided the Distributor owns 100% of the capital stock of the corporation and personally guarantees, in a written guarant)' satisfactor)' to Mateo, to make all payments and to fiilfill a!l obligations and conditions required under this Agreement. 10.4 Securitv Interest. The Distnbutor will not grant a security interest in the Distributorship or this Agreement without Mateo's prior written consent. Mateo will have the right as a condition of its consent, to require the secured party to agree that if the Distributor defaults under any security interest, then Mateo will have the right and option (but not the obligation) to be substituted for the Distributor as the obligor to Mateo luCmOJO Distribulorship Agreemeni PK •542^.a23775.3 PagC 12 'j^^^^'^^S^Sg^ia the secured part)' and to cure any default of the Distributor without the acceleration of any indebtedness due from the Distributor. 10.5 Transfer bv Mateo. Mateo will have the right to transfer or assign this Agreement and all or any part of its rights or obligations herein to any person or legal entity without notice totiieDistributor. 10.6 Non-Competition and Non-Solicitation Following a Transfer. In addition, to the covenants regarding non-competition and non-solicitation of Distributor, Spouse and others as specified in Section 11.8 below, Mateo encourages Distributor to obtain a noncompetition agreement from the previous Distributor that serviced the List of Calls, and Mateo expects that it will encourage any new distributor that acquires the business, the route, the accounts or the distributorship of the Distributor to obtain a noncompetition agreement from the outgoing or transferring Distributor. The noncompetition agreement may assist in preventing competition from the previous Distributor, Spouse, and immediate familv members for a continuous unintcrmptcd period of one (1) year from the date of a transfer permitted under Section 10 above, or expiration or termination of the previous Distnbutor's Distributorship Agreement (regardless of the cause for termination). Competition includes, but is not limited to, selling or attempt to sell any Products or any products the same as or similar to the Products to (i) any existing Customer on the Distributor's List of Calls who purchased one or more Products from the previous Distributor during the 12-month period immediately preceding the dates referred to in this Section 10.6, or (ii) any Potential Customer on the Distributor's List of Calls and Potential Customer List, located on, or identified in, the previous Distributor's List of Calls and Potential Customer List, as such lists existed, or may have been amended as provided for in the previous Distributor's Agreement and in accordance with Mateo's policies, if the previous Distributor had visited or made one or more sales calls to such Potential Customer, List of Calls, or person or business identified on the Potential Customer List during the 12-month period immediately preceding the date referred to in this Section 10.6. ARTICLE 11 TERMINATION 11.1 Termination by Distributor. The Distributor may terminate this Agreement, at any time, with or without cause, by giving thirty days prior written notice to Mateo. 11.2 Mateo's Termination Rights. Mateo will have the right to terminate this Agreement if the Distributor: (A) violates any material term, provision, obligation, representation or warrant)' contained in this Agreement or any other agreements entered into with Mateo including, but not limited to, agreements regarding participation in the Mateo Tools PSA Program, (B) makes an assignment for the benefit of creditors or if a voluntar)' or involuntarv' proceeding is instituted against the Distributor in bankmptcv or under any other insolvency or similar law, (C) attempts to assign or transfer this Agreement without Mateo's written consent, (D) abandons the Distributorship, (E) fails to timely make any payment due to Mateo under this Agreement or under any other agreement, promissor)' note or contract, or (F) refuses to permit Mateo to audit his books and records in accordance with Section 5.2. 11.3 Notice; Cure Periods. Mateo will not have the right to temiinate this Agreement unless and until: (A) written notice setting forth the alleged breach giving rise to the termination has been delivered to the Distributor in accordance with the terms of Section 13.2, and (B) the Distributor fails to correct the breach within the period of time specified by law. If applicable law does not specify' a time period to correct the breach, then the Distributor will have si-xtvthirty days to correct the breach except where the written notice states that the Distributor is delinquent in any pavment due to Mateo under this Agreement in which case the Distnbutor will have ten days to make full payment to Mateo. Mateo 2uU92<J\0 Distributorship Agreement PK ?45^;H;.23775.3 PagC 13 i.-i-2-7.091^:9^10 11.4 Immediate Termination Rights. Notwithstanding Section 11.3, Mateo will have the right to immediately terminate this Agreement by giving the Distributor written notice of termination, if the Distributor: (A) abandons the Distributorship, including voluntary or involuntar)' abandonment, and/or abandonment due to repossession of the Mateo Tools tmck and inventor)', (B) is convicted of or pleads guilt)' to a gross misdemeanor or felony, (C) is involved in any conduct or act which materially impairs the goodwill associated vvith Mateo, the Business System, or the Marks, (D) refiises to permit Mateo to audit his books and records in accordance with Section 5.2, (E) has been found to have submitted a fraudulent credit application, (F) commits any fraudulent act in connection vvith any of his/her agreements with Mateo, (G) fails to comply with Section 3.2 of this Agreement by offering to sell or selling any products to customers at any location not identified on the distributor's List of Calls or Potential Customer List without Mateo's express written authorization, (H) is disabled to the extent distributor cannot perform such obligations hereunder for a period of (6) six consecutive months, or for any (6) six months wdthin a period of (18) eighteen consecutive months, (I) dies, (J) after curing a default pursuant to Section 11.2, commits the same default again within a twelve (12) month period of the previous default, whether or not cured after notice, (K) commits the same or different default under this Agreement, three or more times within any twelve (12) month period, whether or not cured after notice, (L) makes an assignment for the benefit of creditors or if a voluntary or involuntary proceeding is instituted against the Distributor in bankmptcv or under any other insolvency or similar law, or (M) fails to submit to or undergo a dmg and/or alcohol test if required by Mateo, or fails the dmg and/or alcohol test required by Mateo. 11.5 Obligations Upon Termination. Upon the termination or expiration of this Agreement, the Distributor will: pay Mateo all amounts owed by the Distributor to Maico including interest charged on distributor's Open Purchase Account balance at arateof 22.5% annually or the maximum rate permitted by law, whichever is lower; provide Mateo with the inventor)' amounts and financial infomiation of the Distributorship for the preceding twelve months; immediately cease using all of the Marks and the Business System; provide Mateo with all Customer lists and other information relating to the Customers of the Distributorship; retum to Mateo by pre-paid U.S. mail the Manual and all olher manuals, software, catalogs, brochures, pamphlets, decals, signs, and other materials provided to the Distributor by Mateo, and/or destroy all electronic versions of such materials and provide verification of such destmction to Mateo; and remove all Marks, logos, graphics and insignias indicating a relationship wdth Malco from the Malco Tmck and all olher property of the Distributor. In addition, Malco may assess Distributor a late fee of S25 per week for each week that the Distributor fails to pay the balance owed on the Open Purchase Account follovving termination. 11.6 Return of Products. Within thirl)' days following: (A) the expiration or non-renewal of this Agreement, or (B) termination of this Agreement by Mateo or by Distributor, Malco will, in accordance with Mateo's then-current Product retum policy, permit the Distributor to retum the new and unused Producis purchased by the Dislribulor from Malco, and the amounl of the Products retumed will be credited to the Distributor's open purchase account, subject to any fees or changes in accordance with Malco's thencurrent Product return policy. 11.7 Warrantv Returns. During the thirty day period following termination of this Agreement, Malco will accept Producis retumed lo it by the Distributor for warranty claim processing in accordance with Mateo's then existing warranty policy. 11.8 Non-Solicitation of Customers; Covenant Against Competition. Distributor and Spouse, if applicable, individually covenant that each of Distributor. Spouse, Distributor's employees, and the immediate family members of Distributor and Spouse, except as otherwise approved in writingby Malco: 11.8.1 shall not, during the lerm of this Agreement, either directly or indirectiy, for itself, or through, on behalf of, or in conjunction with any person, persons, partnership, limited liability companv, or Malco iyiiy29_lll Distributorship .Agreement PK ?4-3^r^»2377?.3 Page 14 'KV-2".ai>3:2\9l1_(! corporation, ov™, maintain, operate, engage in, or have any interest in any business which is the same as or similar to a Malco mobile tool distributorship business, including without limitation, a business that manufactures, sells, and/or distributes any producis that are the same as or similar to the Products (referred to herein as a "Competitive Business"); 11.8.2 shall not, during the term of this Agreement, either directiy or indirectiy, for itself, or through, on behalf of, or in conjunction with any person, persons, parmership, limiled liabilit)' company, or corporation, sell or attempt to sell to any customers or Potential Cusiomers of the Distributorship any producis that are the same or similar to the Producis; 11.8.3 shall not for a continuous unintcrmptcd period of one (I) year from the date of: (A) a transfer permitted under Section 10, above; (B) expiration or terminaiion of this Agreement (regardless of the cause for termination); or (C) a final order of a duly authorized arbitrator, panel of arbitrators, or court of competent jurisdiction (after all appeals have been taken) with respect to any of the foregoing or with respect to the enforcement of this Section 11.8, either directly or indirectiy, for itself, or through, on behalf of, or in conjunction with any persons, partnership, limited liability company, or corporation, sell or attempt to sell any Products or any products the same as or similar to the Products to (i) any existing Customer who purchased one or more Products from Distributor during the 12-monlh period immediately preceding the dales referred to in subclauses (A), (B), or (C) of this Section 11.8.3, or (ii) any Potential Customer, located on, or ideniified in, the Lisl of Calls and Potential Customer List, as such lists existed, or may have been amended as provided for in this Agreement and in accordance with Malco's policies, if Distributor had visited or made one or more sales calls to such Potential Customer, List of Calls, or person or business identified on the Potential Customer Lisl during the 12-monlh period immediately preceding the date referred to in subclauses (A), (B), or (C) of this Section 11.8.3. ARTICLE 12 DISPUTE RESOLUTION 12.1 Arbitration. Except as expressly provided in Section 12.5 of this Agreement, all breaches, claims, disputes and controversies (collectively referred lo as "breaches" or "breach") between the Distributor, including its Spouse, shareholders, partners or guarantors, and Malco, including its employees, agents, officers or directors and its parent, subsidiar)' or affiliated companies, arising from or related to this Agreement, the offer or sale of the franchise and distribution rights contained in this Agreement, the relationship of Mateo and Distributor, or Distributor's operation of the Distributorship, including any allegations of fraud, misrepresentation, and violation of any federal, state or local law or regulation, vvill be determined exclusively by binding arbitration in accordance with the Rules and Regulations of the American Arbitration Association ("Arbitration"). 12.2 Notice of Dispute; Cure Period. The part)' alleging the breach must provide the olher party with written noiicc setting forth the facts of the breach in detail, and neither party will have the right to commence any Arbitration hearing until such vvritten notice is given. The party alleged lo have breached this Agreement will have swfythirty days from receipi of the writien notice lo correct the alleged breach. If the alleged breach is not corrected within the stxtvthirt\: day period, then either part)' will have the right to request Arbitration as provided herein lo determine their rights under this Agreement. 12.3 Limitation of Acfions; Waiver of Claims. ANY AND ALL CLAIMS AND ACTIONS, BROUGHT BY ANY PERSON OR PARTY, ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE RELATIONSHIP OF MATCO AND DISTRIBUTOR, THE OFFER OR SALE OF THE FRANCHISE AND DISTRIBUTION RIGHTS CONTAINED IN THIS AGREEMENT, OR DISTRIBUTOR'S OPERATION OF THE DISTRIBUTORSHIP, INCLUDING ANY ARBITRATION PROCEEDING, OR ANY CLAIM IN ARBITRATION (INCLUDING ANY Mateo 2'..':'92!).ly Distributorship Agreemeni PK M2^23775.3 Page 15 'KV-2-".aiJ,L2^yi; DEFENSES AND ANY CLAIMS OF SET-OFF OR RECOUPMENT), MUST BE BROUGHT OR ASSERTED BEFORE THE EXPIRATION OF THE EARLIER OF (A) THE TIME PERIOD FOR BRINGING AN ACTION UNDER ANY APPLICABLE STATE OR FEDERAL STATUTE OF LIMITATIONS; (B) ONE (1) YEAR AFTER THE DATE UPON WHICH A PARTY DISCOVERED, OR SHOULD HAVE DISCOVERED, THE FACTS GIVING RISE TO AN ALLEGED CLAIM; OR (C) EIGHTEEN (18) MONTHS AFTER THE FIRST ACT OR OMISSION GIVING RISE TO AN ALLEGED CLAIM; OR IT IS EXPRESSLY ACKNOWLEDGED AND AGREED BY ALL PARTIES THAT SUCH CLAIMS OR ACTIONS SHALL BE IRREVOCABLY BARRED. CLAIMS OF THE PARTIES FOR INDEMNIFICATION SHALL BE SUBJECT ONLY TO THE APPLICABLE STATE OR FEDERAL STATUTE OF LIMITATIONS. 12.4 Powers of Arbitrator. The authority of the arbitrator will be limited to making a finding, judgment, decision and award relating to the interpretation of or adherence to the written provisions of this Agreemeni. The Federal Rules of Evidence (the "Rules") will apply to all Arbitration hearings and the introduction of all evidence, testimony, records, affidavits, documents and memoranda in any Arbitration hearing must comply in all respects with the Rules and the legal precedents interpreting the Rules. Both parties will have the absolute right to cross-examine any person who testifies against them or in favor of the other party. The arbitrator has the right to award, or include in his or her award, any relief vvhich he or she deems proper in the circumstances, including, without limitation, money damages (with inierest on unpaid amounis from the date due), specific performance, injunctive relief, and attomeys' fees and costs, provided that the arbitrator may not declare any Mark generic or otherwise invalid and, excepi as Section 12.7 below otherwise provides, Malco and Distributor (and Distributor's owners, if Distributor is not a sole proprietorship) waive any right to or claim for any exemplar)' or punitive damages. The arbitrator will have no authority to add to, delete or modify' the terms and provisions of this Agreement. All findings, judgments, decisions and awards of the arbitrator will be limited to the dispute or controversy set forth in the written demand for Arbitration, and the arbitrator will have no authorit)' to decide any olher issues. The arbitrator will not have the right or authority to award punitive damages lo Malco or the Distributor or their officers. Directors, shareholders, parmers or personal guarantors (as applicable). Allfindings,judgments, decisions and awards by the arbitrator will be in writing, will be made within ninety days after the Arbitration hearing has been completed, and will be final and binding on Malco, the Distributor and the Distributor's officers. Directors, shareholders and personal guarantors. Notwithstanding Section 12.9, the written decision of the arbitrator vvill be deemed to be an order, judgmeni and decree and may be entered as such in any Court of competent jurisdiction by either party in any jurisdiction. 12.5 Disputes not Subiect to Arbitration. The following disputes and controversies between the Distributor and Malco will not be subject to Arbitration: any dispute or controversy involving the Marks or which arises under or as a result of Article 7 of this Agreement, any dispute or controversy involving immediate termination of this Agreement by Mateo pursuant to Section 11.4 this Agreement, and any dispute or controversy involving enforcement of the covenants not lo compete contained in this Agreement. 12.6 No Collateral Estoppel or Class Actions. All Arbitrationfindingsand awards expressly made by the arbitrator will be final and binding on Malco, the Distributor and the Distributor's Spouse, officers, Direciors, shareholders, and personal guarantors. The arbitrator's findings and awards may not be used to collaterally estop Malco, the Distributor or any other party from raising any like or similar issue, claim or defense in any other or subsequent Arbitration, litigation, court hearing or other proceeding involving third parties or olher Distributors. No party excepi Malco, the Distributor and their officers, Directors, shareholders. Spouse, and personal guarantors (as applicable) will have the right to join in or become a part)' to any Arbitration proceeding arising under this Agreement, and therefore, the arbitrator will not be authorized to permit class actions (as defined in the Federal Rules of Civil Procedure) or lo permit any person or entity that is not a part)' lo this Agreement to be involved in or lo participate in any Arbitration hearings conducted pursuant to this Agreement. Malco 2i4i92avy Distributorship .Agreement PK ?-i2^.42377?.3 PagC 16 it^i(myi9yiO 12.7 Limitation of Damages. EACH OF THE PARTIES HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO OR CLAIM FOR PUNITIVE, EXEMPLARY, INCIDENTAL, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES, INCLUDING, WITHOUT LIMITATION, LOSS OF FUTURE PROFITS, ARISING OUT OF ANY CAUSE WHATSOEVER, WHETHER BASED ON CONTRACT, TORT OR STRICT LIABILITY, AND AGREES THAT IN THE EVENT OF A DISPUTE, THE RECOVERY OF EITHER PARTY WILL BE LIMITED TO THE RECOVERY OF ANY ACTUAL DAMAGES SUSTAINED BY IT. 12.8 Waiver of Jurv Trials. EXCEPT WHERE SPECIFICALLY PROHIBITED BY STATE LAW, IF ANY DISPUTE IS NOT SUBJECT TO ARBITRATION UNDER THIS AGREEMENT, THEN EACH OF THE PARTIES AGREES THAT THE TRIAL OF ANY LEGAL ACTION ARISING UNDER THIS AGREEMENT OR THE RELATIONSHIP OF THE PARTIES WILL BE HEARD AND DETERMINED BY A JUDGE WHO WILL SIT WITHOUT A JURY. THE PARTIES ACKNOWLEDGE THAT THEY HAVE OBTAINED INDEPENDENT LEGAL ADVICE AS TO THE EFFECT OF THIS JURY WAIVER PROVISION, AND FURTHER ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTAND THE EFFECT OF THIS JURY WAIVER PROVISION. EITHER PARTY MAY FILE AN ORIGINAL OR COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT BY THE PARTIES TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 12.9 Venue and Jurisdiction. All Arbitration hearings must and wdll lake place exclusively in Summit Qr_Cuyaho_ga_Count)', Ohio. All court hearings, mediation hearings or other hearings initiated by either part)' against the olher party must and will be venued exclusively in Summit or^uyahoga_Count)', Ohio. Malco and the Distributor, and where applicable their officers, directors and personal guarantors, do hereby agree and submit to personal jurisdiction intiw-Summitor„CuyaliQga.County, Ohio in connection with any Arbitration hearings, court hearings or other hearings, including any lawsuit challenging the arbitration provisions of this Agreement or the decision of the arbitrator, and do hereby waive any rights to contest venue and jurisdiction in the-Summit orXiiyahoga.County, Ohio and any claims that venue and jurisdiction are invalid. In the event the law of the jurisdictions in which Distributor operates the Distributorship require that arbitration proceedings be conducted in that state, the Arbitration hearings under this Agreement shall be conducted in the state in which the principal office of the Distribulorship is localed, and in the cit)' closest to the Distributorship in which the American Arbitration Association has an office. Notwithstanding this Article, any actions brought by either part)' to enforce the decision of the arbitrator may be venued in any court of competent jurisdiction. 12.10 Iniunctive Relief. Noihing herein contained shall bar Malco's or Distributor's right to obiain injunctive relief against threatened conduct that will cause it loss or damages, under the usual equit)' mles, including the applicable mles for obtaining restraining orders and preliminary injunctions. 12.11 Severabilitv. It is the desire and intent of the parties lo this Agreement that the provisions of this Article be enforced lo the ftillesl extent permissible under the laws and public policy applied in each jurisdiction in which enforcement is sought. Accordingly, if any part of this Article is adjudicated to be invalid or unenforceable, then this Article will be deemed amended to delete that portion thus adjudicated to be invalid or unenforceable, such deletion to apply only with respect lo the operaiion of this Article in the particular jurisdiction in which the adjudication is made. Further, to the extent any provision of this Article is deemed unenforceable by virtue of its scope, the parties to this Agreement agree that the same will, nevertheless be enforceable to the fiillest extent permissible under the laws and public policies applied in such jurisdiction where enforcement is sought, and the scope in such a case will be determined by Arbitration as provided herein. Mateo 2i-m2iy\i> Di.Hiribulorsliip Agreement PK ?-I2*;T('>23775.3 PagC 17 ;:a.-;.7.(>93:2;2:iO ARTICLE 13 MISCELLANEOUS 13.1 Waiver. The failure of Malco lo enforce at any time any provision of this Agreement will in no way affect the validit)' or aet as a waiver of this AgreemenL or any part, or the right of Mateo thereafter to enforce it. The Distributor acknowledges that Malco operates a large and diverse distribulorship network and that Malco is not obligated to enforce each distributorship agreement in a uniform manner with respect to the other distributors. 13.2 Notices. Any notice required under this Agreement will be deemed to have been duly given if it is addressed to the part)' entitled to receive it at the address set forth on the cover page of this Agreement and it is personally served on the part)', is sent by pre-paid United States certified mail, retum receipt requested, or is sent by a recognized ovemight carrier (Federal Express, UPS, Purolalor) that requires a signature acknowledging deliver)'. 13.3 Governing Law. This Agreement will be govemed by and constmed in accordance wdth the laws of the State of Ohio, and the substantive law of Ohio will govem the rights and obligations of and the relationship between the parties. 13.4 Severability. If any term or provision of this Agreement is determined lo be void, invalid, or unenforceable, such provision will automatically be voided and will not be part of this Agreement, but the enforceability or validity of the remainder of this Agreement will not be affected thereby. 13.5 Entire Agreement. This Agreement, including all exhibits and addenda, supersedes all prior verbal and written agreements between the parties. Subject lo our right lo modify the Manual and the Business System standards, no change, amendment or modification to this Agreement will be effective unless made in writing and signed by both the Distributor and an officer of Matco. 13.6 Definitions. For purposes of this Agreement, the following words will have the following definitions: (A) "Abandon" will mean the conduct of the Distributor, including acts of omission as well as commission, indicating the willingness, desire or intent of the Distributor to discontinue operating the Distributorship in accordance with the Business System and the standards and requirements set forth in the Manual and this .Agreement. (B) "Customer" will mean, at any time during the Term of this Agreement, or upon lerminaiion, a person or business lhat has purchased Products from the Distributor wdthin the immediately preceding twelve-month period. (C) "Malco Tmck" will mean the tmck used by the Distributor solely in connection with the operation of his Distributorship. The Malco Tmck will at all times during the Term of this Agreement comply with all of Malco's standards and requirements as lo color, size, engine size, storage capacity, graphics, on-board technology and design. (D) "New Distributor Starter Inventor)" will mean the initial inventor)' of Malco Producis required to be purchased by the Distributor. (E) "Operator' vvill mean the individual engaged or employed by the Distributor for purposes of operating the Distribulorship under the terms of any program authorized by Malco to permit the hiring, by a Dislribulor, of another person to operate an additional tmck for the Distributorship. Malco Ikiimim Distributorship .Agreement PK -5*2^ ';23775.3 Page 18 ''^^-''^^:29DM (F) "Potential Customer" will mean an individual who works at a business identified on the Potential Customer List to whom the Distributor intends to offer Products. ARTICLE 14 REPRESENTATIONS BY THE DISTRIBUTOR 14.1 Receipt of Completed Agreement and Disclosure Documents. The Distributor acknowledges that he received Mateo's Franchise Disclosure Document at least 14 calendar days prior to the date this Agreement was signed by him, and that he signed the acknowledgement of receipt attached to the Franchise Disclosure Document. 14.2 Investigation bv Distributor. The Distributor acknowledges that he: has read this Agreement in its entirety; has had full and adequate opportunit)' to discuss the lerms and conditions of this Agreement with legal counsel or other advisors of the Distributor's own choosing; has had ample opportunit)' lo investigate the Malco Business Sysiem; has had ample opportunit)' to consult with current Mateo distributors; and has had all questions relating to the Distributorship, including those of any advisor, answered to the Distributor's satisfaction. 14.3 Truth and Accuracy of Representations. The Distributor and its Spouse represent and warrant to Mateo that (a) all statements, documents, materials, and information, including the application, submitted by the Dislribulor or its Spouse to Malco are lme, correct, and complete in all material respects; and (b) neither the Distributor nor its Spouse, nor any of its or theirftmdingsources, is or has ever been a terrorist or suspected terrorist, or a person or entiiy described in Section I of U.S. Executive Order 13244, issued September 23, 2001, as such persons and enlitlescntities are ftirther described at the Intemet website www.ustreas.gov/offices/enforcement/ofac. The Distributor agrees lo promptly advise Mateo of any material change in the information or statements submitted to Malco. The Disttibutor acknowledges and understands that Mateo has entered into this Agreement in reliance on the statements and information submitted to Malco by the Distributor and ils Spouse, and that any material breach or inaccuracy is grounds for Malco's terminaiion of this Agreement. 14.4 No Representations. Except as may be disclosed in Malco's Franchise Disclosure Document, the Distributor has not received from either Malco, or anyone acting on behalf of Malco, any representation of the Distributor's potential sales, income, profit, or loss which may be derived from the Distributorship. The Distributor understands that Malco will not be bound by any unauthorized representations, including those made by other Mateo distributors or by lending institutions based on information given lo them lo assist in their evaluation of Malco's business opportunity. 14.5 No Warrantv of Success. The Distributor understands that Malco makes no express or implied warranties or representations that the Dislribulor vvill achieve any degree offinancialor business success in the operation of the Distributorship. While Mateo will provide the Dislribulor with training, advice, consultation, and a list of potential cusiomers, success in the operaiion of the Distributorship depends ultimately on the Distributor's efforts and abilities and on other factors beyond Malco's control, including, but not limited to, economic conditions and competition. Mateo iumilim Distribulorship .Agreement PK •?42>;.*',23775.3 PagC 19 ihy^:m?l291]0 IN WITNESS WHEREOF, the parties hereto have caused this Agreement lo be signed on the date set forth above. The Distributor ftirther acknowledges that this Agreemeni will become effective and binding only upon acceptance and execution by Mateo in the State of Ohio. DISTRIBUTOR: NMTC, INC d^/a MATCO TOOLS By: Name: Titie: Date: By: Name: Titie: Date: DISTRIBUTOR'S SPOUSE: Bv: Name: Titie: _ Date: Mateo ^ixmom Distributorship Agreemeni PK M2Mi23275.3 PagC 20 (^i-^-(my2^0 APPENDIX D EXHIBIT A MATCO TOOLS LIST OF CALLS AND POTENTIAL CUSTOMER LIST (See attached form) Mateo Distribulorship Agreemeni PK 542f4v*i23775.3 >ii^T^2d2^D APPENDIX D EXHIBIT B [RESERVED! Malco 2iftlP20,IQ Distribulorahip .Agreement PK ?-i2?;.ri237.7?.3 ^^'^-^i^9^12!M NMTC, Inc. d/h/a Mateo Tools APPENDK D EXHIBrr C INSTALLMENT PROMISSORY NOTE Miami, FL (Debtor's City and State) 72,000.00 (Principal Amount) , 2009 FOR VALUE RECEIVED, the undersigned promises to pay without defalcation or set off to the order of NMTC. Inc. d-Va MATCO TOOLS, a Delaware Corporation ("MATCO"), located at 4403 Allen Road, Stow, Ohio 44224, in lawful money of the United Slates of America, the amounl of Sex^eniy-Two Thousand and 00/100 together with interest thereon at an annual rate of Eight Point Twenty-Five successive unpaid balances of said principal amount in installmenis of Two Hundred Three and 76/100 . On , Percent ( Five Hundred Twenty Dollars ($ 203.76 Dollars ($ ( 520 72.000.00 S.25 ), %) on the ) successive weekly ), commencing on , the entire remaining principal balance, plus any accrued and unpaid interest will be due and payable. Interest at the rate specified herein shall continue to accrue and shall be payable lo the holder hereof on any overdue and unpaid balances of the principal amoum or installments thereof until such overdue amounts are paid in full, whether at or after the mamrity hereof The undersigned shall have the right lo prepay the entire principal amount plus inieresi then accrued thereon at any time without notice or penalty. The undersigned shall be in default under this Note upon the happening of anv of the following evenls or conditions: (a) Any installment of principal or interest on this Note is not paid when due or upon demand as aforesaid: (b) The failure of the undersigned to pay its debts as they mature, or the occurrence of any event which results in the acceleration of the maturity of the indebtedness of the undersigned to others under any indenture, agreement, or undertaking; (c) The cancellation of or default bv the undersigned under that certain Distributorship Agreement, between Mateo and the undersigned or any other agreement, note, lease, or contract between the undersigned and Mateo or any subsidiary or affiliate of Mateo, or the failure ofthe undersigned to perform anv other obligation of the undersigned to subsidiary or affiliate of Mateo; (d) The dissolution, tennination of existence, insolvency, business failure appointment ofa receiver of any part of the property of, assignmeni for the benefit of creditors by, or the commencement of any proceedings under any bankmptcy or insolvency laws by or againsi. the undersigned or any guarantor of surely for the undersigned. (e) The failure of the undersigned to have this note fully collateralized at all times. Upon default hereunder, the entire principal amount unpaid hereon, with interest then accmed, shall, al the option of any holder hereof, at once become due and payable without demand, or notice, demand and notice being hereby expressly waived, and such amounts of principal thereby declared to be due and payable shall thereafter continue to bear interest at the rate specified herein until all such amounts of principal plus interest accmed hereunder shail have been paid in full. Payments made hereon shall first he applied to payment of inierest then accrued and then lo the pnncipal amount which remains unpaid. The makers, endorsers and all guaraniors of this Note jointly and severally waive demand, protest, prescntmeni. notice of protest and non-pavTiient or dishonor, and also waive any and all defenses on the grounds of any extensions or partial payments which may be granted or accepied by the holder before or after mamrity of this Note or any installment hereof Any rights or remedies conferred herein or by law upon any holder shall be cuinulaiive and not exclusive and may be exercised at the option of the holder, either concurrently or consecutively. Should legal aciion or an attomey ai law be utilized to collect any amount due hereunder, the undersigned promises to pay all costs of collection. Including reasonable attomey's fees, incurred by Mateo, any agent of Mateo or afBliates thereof, or any other holder. The undersigned, if more than one. shall be jointly and severally liable hereon. This note is govemed by Ohio law. WITNESS: Debtor: Debtor: Debtor's Address: (Street) (City) (State) (Zip) IN CONSIDERATION OF ONE DOLLAR, receipt of which is acknowledged, and of the credit given or discount, loan or extension of time made by or upon the within note, the undersigned (if more thao one jointly and severally) hereby unconditionally guarantee to the holder the payment thereof whenever due, in whole or in part, agree that no release of security therefor shall impair or be a defense to this guaranty and hereby consent that from time to time, without notice to the undersigned, payment of said note be extended in whole or part. The signature or signatures of the undersigned hereto is or are intended as an endorsement of the within instrument as will as the execution of the foregoing guaranty by each of the undersigned, who hereby respectively waive presentment, demand or payment, protest, and notice of non-payment and of protest. FOKM KR.ANIX>C-IPN-Revised 12 06 SECURITY AGREEMENT APPENDDC D EXHIBIT D S E C U R I T Y . A G R E E M E N T between N M T C , INC. d/b/a M A T C O TOOLS a Delawair Corporation, with an Office at 4403 Allen Road, Stow, Ohio 44224, ("Secured Party") and City o f of County of State o f ("Debtor"). 1. C R E A T I O N O F S E C U R I T Y INTEREST. In consideration of Secured Party extending credit and/or fmancing facilities to Debtor, Debtor hereby grants to Secured Party a security interest in the Collateral described in Section 2 to secure all Debtor's present and future debts, obligations and liabilities o f whatever nature accruing under the Mateo Tools Distributorship Agreement signed by the parties on , , if any, any note or notes of Debtor, direct or indirect, absolute or contingent, due or to become due, whether now ejtisting or hereafter arising, together with applicable interest thereon ("Obligations"), to Secured Party. This Agreement shall not be rendered void by the fact that as of any particular date there are no outstanding secured obligations, and no commitment by Secured Party to make advances. If at such time additional future advances are contemplated by the parties hereto, or any o f them, this Agreement shall, i f otherwise valid, continue in force and effect, insofar as concems, and stand as security for, any indebtedness, liabilities and obligations o f Debtor to Secured Party, incurred as arising prior to the filing of record of a tennination statement with respect hereto, as required by law. Debtor hereby instructs the Secured Party not to file a termination statement until requested to do so by Debtor in writing. 2. C O L L A T E R A L . The collateral subject to this Security Agreement ("the Collateral") is Debtor's inventory of all tools, and equipment, including attachments, accessories, and replacement parts therefore, now owned or hereafter acquired by Debtor, atl products derived there from, and all cash and non-cash proceeds, notes, instrumCTts, chattel paper, contract rights, general intangibles and accounts receivable together with all proceeds arising there from, wheiher as a result of the sale exchange, collection or other disposition of any of the Collateral, or otherwise. The Collateral is more specifically described in Debtor's purchase orders, invoices, periodic inventories, and books and records o f account, as and when executed, which are by reference made a part hereof 3. D E B T O R ' S W A R R A N T I E S A N D C O V E N A N T S . Debtor covenants and warrants: (a) Ownership-exc^t for the security interest hereby panted. Debtor has, or in acquisition will have, full fee simple title to the Collateral, free of any adverse encumbrances, liens, or security inta-ests, and that Debtor will defend the Collateral against all claims and demands o f all persons at any time claiming the same or any interest therein. (b) Location o f Collateral-the Collateral will be kept at the address(es) of Debtor shown herein. (c) Change o f Addresses-Debtor shall immediately advise Secured Party in writing of any change or discontinuance in any o f such address(es). (d) No OthCT Financing Slatement-which no otho- Financing Statement covering any of the Collateral is on file in any public office, with the exception ofthe following lien by none but Mateo . (e) Maintenance of Collatcral-that Debtor shall maintain the Collateral in good condition and repair and not pennit its value to be impaired; keep it free from all liens, encumbrances, and security interests (other than Secured Party's security interests); defend it against all claims and legal proceedings by persons other than Secured Party; pay and discharge when due all taxes, license fees, levies, and other charges upon it; not .sell, lease, or otherwise dispose of it or permit it to become an accession to other goods except in the ordinary course of business, or as specifically auihorized in writing by Secured Party; not pennit it to be, used in violation o f any applicable law, regulation, or policy o f insurance. Loss of or damage to the collateral shall not release Debtor from any of the O B L I G A T I O N S . (f) Insurance of Collateral-thai Debtor will have and maintain insurance at all times with respect to all Collateral against risks of tlre<included extended coverage), theft and other casualty, with reputable insurance companies; such insurance to be payable to Secured Party and Debtor as their interests may appear. (g) Proceeds of Notes-in the event that any of the Collateral is being or shall be acquired with the proceeds disbursed by Secured Party of a note or notes. Debtor shall use such proceeds soMy for acquisition of Collateral and shall not mingle such proceeds with Debtors other assets nor divert such proceeds for any other purpose whatever. 4. F I N A N C I N G S T A T E M E N T . At the request of the Secured Party, IX-btor will join in executing, or will execute, all necessary financing statements and any other dtKuments deeme<l necessary by Secured Party and pay the cost of filing such statements or othei' documents. 5. P E R S O N S B O U N D . This Agreement benefils Secured Party, its successors and assigns, and binds the Debtor(s) and their respective heirs, personal representatives, successors, and as,';igns. 6. PAYMENT. Payment for all OBLIGATIONS shall be made in accordance with the terms of the Agreement under which they accrued, interest on all OBLIGATIONS shall accrue from the dale the OBLIGATION was incurred until payment in full by Debtor at theratepublished by Secured Party from time to time. 7. POSSESSION OF COLLATERAL. Until default Debtor may have possession of the Collateral and use or sell it in the ordinary course of Debtor's business, in any lawful manner not inconsistent with this Agreement. 8. INSPECTION OF COLLATERAL. Secured Party is authorized to examine and inspect the Collalwal wherever located at any reasonable time or times, and Debtor shall assist Secured Party in making such inspection. 9. REQUIRED REPORTS. Debtor will provide necessary business reports as requested by Secured Party field and/or Corporate Management. 10. MAINTENANCE OF SECURITY INTEREST. Debtor shall pay all expenses and. upon request, take any aciion reasonably deaned advisable by Secured Party to preserve the Collateral or to establish, detennine priority of, perfect, continue perfected, terminate, or enforce Secured Party's interest in it or rights under this Agreement. 11. AUTHORITY OF SECURED PARTY TO PERFORM FOR DEBTOR. If Debtor breaches or fails to perfonn, as when required, any provision of this Agreement or the OBLIGATIONS, Secured Party is authorized, in Debtor's name or otherwise, to take any such action including without limitation signing Debtor's name or paying any amount so required, and the cost shall be one of the OBLIGATIONS secured by this Agreement and shall be payable by Debtor upon demand with interest from the date of payment by Secured Party at Secured Party. At theratepublished from time to time by Secured Party. 12. DEFAULT. Debtor shall be in default under diis agreement upon the happening of any of the following events or conditions: (a) Default in the payment or performance of any obligation, covenant, liability and/or the OBLIGATIONS contained or referred to herein or in anv note evidencing the same; (b) Any warranty, representafion or statement made or ftimished to Secured Party by or on txrhalf of Debtor proves to have been false in any material respect when made or furnished; (c) Any event which results in the acceleration of the maturity of the indebtedness of Debtor to oihers under any indenture, agreement or undertaking; (d) Loss, theft, damage, destruction, sale except in the ordinary course of business, or encumbrance to or of any of the CoHateral, or the making of any levy, seizure or attachment thereof or thereon; (e) Death, dissolufion. termination of existence, insolvency, business failure, appointment of a receiver of any part of fhe property of, assignment for the benefit of creditors by, or the commencement of any proceedings under any bankruptcy or insolvency laws by or against. Debtor or any guarantor or surety for Debtor. (f) The failure of the undersigned to have this note fully collateralized at all times. 13. DEBTOR'S DEFAULT. Upon default hereunder or cancellation of the Mateo Tools Distributorship Agreement between the parties, if any, or default by Debtor under said Agreement, all the OBLIGATIONS shall at the option of the Secured Party and without any nofice or demand, become immediately due and payable; and Secured Party shall have all rights and remedies for default provided by the Unifonn Commercial Code, as enacted in the State of Ohio, as well as any other applicable law. With respect to suchrightsand rranedies; (a) Assembling Collateral-Secured Party may require Debtor to assanble the Collateral and to make it available to Secured Party at any convenient place designed by Secured Party. (b) Nofice of Disposition- Written notice, when required by law, sent to any address of Debtor in this Agreement al least ten calendar days (counfing the day of the sending) before the date of a proposed disposition of the Collateral is reasonable nofice. (c) Expenses and Application Proceeds-Debtor shall reimburse Secured Party for any expense incurred by Secured Party in protecfing or enforcing its rights under this Agreement, including without limitation reasonable attorneys' fees and legal expen.ses and all expenses of taking possession, holding, preparing for disposition, and disposing of the Collateral. After deducfion of such expenses. Secured Party may apply the proceeds of disposition to the OBLIGATIONS in such order and amounts as it elects. (d) Waiver-Secured Party may permit Debtor to remedy any default without waiving the default so remedied, and Secured Party may waive any default without waiving any other subsequent or prior default by Debtor, or the same default at a later date. 14. NON-LIABILITY OF SECURED PARTY. Secured Party has no duty to protect or dispose ofthe Collateral. Debtor releases Secured Party from any liability for any act or omission relafing to the OBLIGATIONS, the Collateral, of this Agreement; except Secured Party's willful misconduct. 15. DE.ALERSHIP AGRLEMENT. The tcmis ofthe current Mateo Tools Distribulorship .Agreement between the parties, if any, are hereby incorporated by reference and shall be part of this Security Agreement unless otherwise provided. No provisions herein shall amend the .Mateo Tools Distributorship Agreemenf or guarantee its continuance or renewal; and. likewise, no term therein shaW be deemed to modity or amend the terms hereof. In the ca.se ofany conflict or ambiguity between the tenns of the Mateo Tools Distributorship Agreement and this Agreement, the tenn.'! of this Agreement shall control. 2 16. M I S C E L L A N E O U S . This Security Agreement shall be govemed by the Uniform Commercial Code and other applicable laws o f the State of Ohio, other than the law on conflicts o f law of such State. The terms of this Agreement arc severable; in the event one or more tenns hereof arc finally declared by law or by any coun of competent jurisdiction to be legally void, unenforceable, unconscionable or illegal, the remainder of this Agreement shall continue to be valid and shall be interpreted and enforced as if ihe offending term had not appeared herein. This Agreement, together with any document containing terms incorporated herein or referred to hereby, shall constitute the entire Agreement between Debtor and Secured Party as to the subject matter hereof This Agreement shall become etfective when signed by the Debtor. Secured Party may sell or assign this Agreement to any person or corporalion without prior notice to or consent of Debtor, and Debtor agrees to perform under this Agreement for the benefit of such purchaser or assignee fi-om Secured Party to the same extent as for Secured Party. M A T C O TOOLS Signed by Debtor on . _____ BY (Name & Title) Richard Smearcheck Director, Financial Services Debtor Debtor Witness Witness A l l additiona! addresses of Debtor at which Collateral will be kept are: Street; Sireet: City: City: County: County: Slate: State: ASSIGNMENT For value received, the undersigned Security Party hereby assigns ihis Security Agreement to hereafter called "Assignee", its successors and assigns and hereby transfers title to the propeny described in said Securiiy Agreement to said Assignee, and warrants that the facts set forth in the Security Agreement are true, that said property is free of all liens and encumbrances of whatever nature or kind e.xcept the lien and encumbrance created by this Security Agreanent; that said Security Agreement is genuine and in ali things what it purports to be and lhat the undersigned has title to said property and has a right to transfer title thereto; that the property described in said Securiiy Agreement was sold to the Debtor in a bona fide time sale transaction; that all parties to the Security Agreement had capacity to contract; that none of the parties thereto is a minor; and that ihe undersigned has no knowledge of any fact which impairs the validity of said Security Agreement or renders il less valuable or valueless. If any of the warranties herein contained arc untrue, the undersigned will purcha.sc on demand this Securiiy Agreement for the balance remaining unpaid thereon. This day of , 20 By Tiiic APPENDIX D EXHIBrr E MATCO TOOLS DISTRIBUTOR'S PURCHASE-SECURITY AGREEMENT CREDIT ASSIGNMENT AGREEiMENT THIS AGREEMENT, made and entered into at Stow, Ohio, this day of by and between NMTC, Inc. d/b/a MATCO TOOLS, a Delaware Corporation (herein referred to as "Assignee"), and of (herein referred to as "Distributor"). WITNESSETH, That WHEREAS, Distributor is and has been serving as an independent distributor for NMTC, Inc. d/b/a MATCO TOOLS, herein referred lo as MATCO TOOLS, engaging in the solicitation for sale and sale of MATCO tools and related equipment to professional mechrmics; and WHEREAS, Assignee is willing to provide financing for certain of such purchases, pro\nded Distributor agrees to and complies with the terms and conditions contained in this Aareement; NOW, THEREFORE, the parties hereto agree as follows: 1. From time to time after the date hereof. Distributor shall present to Assignee for purchase executed credit documents and related materials, in form and substance satisfactory to Assignee, providing for the assignment to Assignee of rights to collection of amoimts payable representing the time purchase balance due in connection with the sale by Distributor of tools, equipment and/or related products purchased from M.ATCO TOOLS. Upon receipt of such documents and materials, it shall be within the sole discretion of Assignee whether or not to purchase the same, and nothing herein shall be construed as imposing any obligation upon Assignee to make any purchases from Distributor. 2. The purchase price to be paid to the Distributor by Assignee for credit documents accepted for assignment shall be deiermined by Assignee in its sole discretion, such price will be adjusted periodically and never be less than eighty-five percent (85%) of the net cash price (principal amoimt of purchase included in the credit document being accepted by Assignee not including amounts previously assigned) thereof unless otherwise specified by MAI CO T(X)LS. Upon acceptance of any such documents, payment shall be effected by Assignee arranging for immediate credit against Distributor's purchase account with MATCO (amounts due MATCO in the ordinar>' course of business, exclusive of amounts outstanding under notes or other credit documents provided under other debt agreements between Distributor and MATCO) and a confirming document will be forwarded to Distributor. 3. Distributor hereby warrants and represents to and agrees with Assignee as follows: (a) AU credil documents presented to Assignee for assigmnenl hereunder shall be tull, correct, complete and genuine, and shall be fully and properly executed, shall accurately and truthfully descnbe the daie(s) of purchase, items purchased and purchase price(s) charged and shall not have been oftered previously to any olher financial inslimtion or other eniiiy for purchase or as collateral against advances; (b) All credit doctimenls presented to Assignee for assignment hereunder shall relate to and arise firom the sale of MATCO TOOLS, equipment and/or related products sold and to be utilized primarily for the Commercial conduct of trade or business of the customer executing such document and in no event shall any such credil documents have arisen from or relate to any sales of products for primarily personal family or hou.sehold purposes, or sales of producis marketed by any entity other than MATCO; (c) Without prior written consent of the Assignee, Distributor shall in no event nor at anytime prior to or after a sale of products, modify the lerms of any instrument purchased by Assignee; (d) Distributor shall at all times, as an independent contractor, operate in his own name and be solely answerable for the costs and expenses, consequences and damages arising out of the conduct of his business as a distributor for MATCO; (e) Distributor shall at ail times comply with the procedures from time to time established by Assignee with respect to credit limits, handling of credit documents and other activities related to fmancing of sales of MATCO products as contemplated hereunder; (0 The Distributor may elect to assist Assignee in making repossessions if and when requested to do .so by Assignee provided repossession can be effected withoui Breach of Peace; (g) It is mutually agreed that, upon Assignee's request to make a particular repossession and upon Distributor's election to assist in such repossession, Distributor shall purchase the repossessed merchandise from Assignee. The purchase price of the repossessed product(s) shall be determined by the Fair Market Value established pursuant to MATCO's Repossession Policy, as same may be revised from time to time, and such purchase by the Distributor shall be subject to the Policy's terms and conditions. (h) Distributor agrees that upon tennination or suspension of this Agreement to accept reassignment by Assignee to Distributor of any and all contracts previously purchased during the ninety (90) day period immediately prior to termination of this Agreement. Distributor hereby agrees to accept such assignment withoui set-off or deduction and authorizes Assignee to debit Distributor's purchase account in an amount equal to die amounts due on the reassigned documents; In the event that a replacement Distributor, who agrees fo service the above referenced accounts, is available, then MATCO will offer to re-purchase such serviced accounts at the principle value then outstanding. MATCO will make a good faith effort to locate a Distributor to service any reassigned accounts per the conditions of this paragraph with the intention to repurchase such accounts; (i) Distributor agrees thai at such time thai he is no longer acting as an independent Distributor for MATCO TOOLS to assist in the orderly transfer of accounts not subject to the conditions of paragraph (i) to Assignee, and to assist in the verification of all outstanding balances of assigned accounts prior to settlement of all accounts with MATCO TOOLS; (j) Distributor agrees to collect and remit to Assignee amounts payable representing the time purchase balance due in connection with the sale by Distributor of tools, equipment and/or related products purchased from MATCO TOOLS and fmanced pursuant to this Agreement; and (k) Disuibulor agrees to service all MATCO TOOLS P.S.A. Accounts existing within his Exclusive List Of Calls and Potential Customer List whether the original contract was written by Distributor or not. 4. Upon acceptance ofthe credit documents hereunder. Assignee hereby relea,ses Distributor from all liability for said credit documents excepi as provided in Paragraph 3; subjeci, however, to the following terms and conditions: (a) Upon failure by Distributor to remit payments or other funds collected on behalf of Assignee, pursuant to Paragraph 3 (d) above. Distributor hereby authorizes .Assignee and MATCO to debit Distributor's Purchase Account with MATCO in an amounl or amounts equal to the sums collected but not remitlcd. In addition, .MATCO may charge Distributor an adminisiraiive fee (currently set at S25 per occurrence, per contract) for delinquent, insufTiciem payments or inaccurale reporting as consideration for MATCO's lime and efibrts in collecting monies, additional correspondence with you. credil bureaus and oihers, and administrative time and costs to correct data. .Any amounts not remitted by Distributor within 10 days of their collection shall be deemed funds not promptly remitted and subject to this provision; (b) Any documents, notes, agreements or other contracts assigned by Distributor to Assignee pursuant to this Agreement which are later shown or alleged to be, in whole or in part, altered, amended, modified, forged, or not genuine, accurate, or in compliance with the terms of this Agreemeni in any respect, shall be immediately reassigned by Assignee lo Distributor and upon such reassignment Distributor hereby agrees to accept such assignment and immediately, without set-off or deduction of any kind, agrees to pay Assignee the full amount of any principal balance then outstanding thereon plus interest, and other charges accrued thereon to the date of such reassignment. Upon failure by Distributor to pay Assignee as stated above upon any reassignment of documents within 10 da^-s of the date of reassignment, Distributor hereby authorizes Assignee and MATCO to debit Distributor's Purchase Account in an amoimt equal to the amounts due on the reassigned documents. This Paragraph (b) shall not apply in the case when Assignee has, by its own action, or with its written consent, been a party to an amendment or modification ofany document, note, agreement or other contract; and (c) Distributor shall not, without prior written conseni of Assignee, release any security interest in goods subject to documents assigned to Assignee hereimder, modify or substitute collateral specified in any such documents, consent to or accept retum ofany goods or collateral subject to or covered by any of the assigned documents or effect repossession of any such goods or collateral. Any of the foregoing actions on the part of Dislribulor, without the written consent of Assignee, shall be deemed to be an alteration ofthe documents pursuant of Paragraph 4 (b) above. 5. In the event Distributor desires to include portions or all of an unpaid balance owing to Distributor by a particular customer with new purchases by the customer, and assign all such amounts to Assignee pursuant to this Agreement, such a proposal will be considered, provided the total net cash price of new purchases will equal or exceed minimum amounts as may be required under the policies of the Assignee. If Distributor desires to make such a proposal, he shall do so in writing, including therewith a completed credit application, as may be required by the Assignee, on the customer and a copy of the customer's ledger sheet showing charges, credits, total owing, and payment records, and such other information relating to the customer or transactions as Assignee may reasonably request. The decision on acceptance of the proposal shall be within the sole discretion of Assignee. 6. The liability of Distributor hereunder shall not be affected by any settlement, extension, forbearance or variation in terms which Assignee may grant in cormection with any credit documents acquired hereunder or by the discharge or release of the obligations of the account debtor by operation of law or otherwi.se. Assignee makes no representation or warranty to Distributor concerning the validity, enforceability or sufficiency of any credit documents and/or other materials fumished to Distributor by Assignee. 7. This Agreement may be temiinated al any time by Disnibutor or Assignee by written noiice, but such termination shail not affect the respeclive rights and obligations of either party as to credit documents theretofore purchased by Assignee. 8. It being anticipated that Distributor and/or other parties to credit assignmeni agreements with A.ssignee may assign to Assignee credii documents covering sales to a particular customer which occurred on more than one occasion, it is understood and agreed that, unless otherwise agreed in writing between Assignee and Distributor or required by law. payments received from such a customer will be applied againsi ihe respective payment obligatiotLs of the customer in a manner such that all current and past due obligations under the documenis bearing the earliest dale will be treated as satisfiedfirst,all current and past due obligations under the documents bearing the next-earliest date will be treated as satisfied next, and so-on. with the current and past due obligations under the documenis bearing the most recent date being treated as satisfied only after ciurent and past due obligations under documents bearing eariier dates have been satisfied. 9. This Agreement contains the eniire understanding of the parties with respect to the transactions contemplated hereby and the same shall be amended or modified only by written agreement specifically referring hereio. None of the provisions hereof shall be deemed lo in anyway limit such rights as either party hereto may have by statute or al law or in equiiy as against the oilier party, and any remedies provided for herein shall be in addition to and not exclusive ofany other remedy available by stanite or under principles of common law of equity and such remedies may be exercised by either party consecutively or concurrently and such exercise shall not be deemed to waive any other rights or remedies which may be available to a party. 3 10. This Agreement shall be binding upon and shall inure to die benefit of the panies hereto and their respective heirs, successors and assigns, provided however, the same shail not be assigned by the Distributor without prior written consent of Assignee thereto. 11. This Agreement shall be govemed by and constmed in accordance with the laws of the State of Oiiio. IN Wm^ESS WHEREOF, the parties hereto caused this Agreement to be executed as of the date and year fu^i written above. SIGNED IN THE PRESENCE OF: NMTC, Inc. d^/a MATCO TOOLS BY Richard Smearcheck ITS: Director, Financial Services DISTRIBUTOR: (signamre) (printed name) (address) APPENDIX D EXHIBIT F MATCO TOOLS DISTRIBUTOR'S PURCHASE-SECURITY AGREEMENT CREDIT ASSIGNMEiNT AGREEMENT "ADDENDUM AND GUARANTY" Distiibutor's Purchase Security Agreement Credit Assignment Agreement made and entered into on the day of , by and between NMTC, Inc. d/b/a MATCOTOOLS, a Delaware Corporation (herein referred to as "Assignee") and of > > (herein referred to as Distributor) is amended and revised this day of ^ , as follows: WHEREAS, Distributor is and has been serving as an independent Distributor for NMTC, bic, d/b/a/ Mateo Tools, herein referred to as MATCO TOOLS engaging in the solicitation for sale and sale of MATCO tools and related equipment to professional mechanics; and WHEREAS, Distributor wishes to make it possible for certain of its customers, which do not meet credit standards required by Assignee, to make purchases of MATCO tools and related equipment and pay for the same on a deferred, installment basis; and WHEREAS, Assignee is willing to provide financing for certain of such purchases, provided Distributor agrees to and complies with terms and conditions contained in this Agreement. NOW, THEREFORE, the parties hereto agree as follows: 1. The determination of a Distributor's eligibility for Assignee to accept Purchase Security Agreements which do not meet credit standards (herein referred to as Recourse PSA) normally required by the Assignee, shall be at the sole discretion of Assignee. 2. The purchase price to be paid to the Distributor by Assignee for Recourse PSA's shall be determined by Assignee in its sole discretion, such price will be adjusted periodically and never be less than ninety-five percent (95%) of the net cash price (principal amount of purchase included in the credit document being offered to Assignee, not including amounts previously assigned) thereof, unless otherwise specified by MATCO TOOLS. 3. Distributor hereby warrants and represents and agrees with Assignee as follows: (a) Distributor hereby authorizes Assignee to debit Distributor's Purchase Account for the principal balance due on any and all Recourse PSA's when any of the following conditions exist-termination, promotion lo District Manager, collateral does not exist, account balance has been paid in full to Di.stributor and/'or fraudulent credit documentation. (b) Distributor guarantees that Assignee will not suffer any loss on the purchase by Assignee o Recourse PSA's (Distributor's customers which do not meet credit standards required by Assignee). 4. This Agreement contains amendments to Distributor's Purchase Security Agreement Credit Assignment Agreement and does not change, revise, cancel or amend any part of said Agreement with the exception of those herein stated. IN WITTsIESS WHEREOF, the parties hereto caused this Agreement to be executed as of the date and year first written above. SIGNED IN THE PRESENCE OF: NMTC, Inc. d/b/a MATCO TOOLS BY ITS Richard Smearcheck Director, Financial Services DISTRIBUTOR: (signature) X (print name) (address) F O R M I"RAMXX'-i.ir-HeM^rt1 i ; Appendix D Exhibit G Mateo T o o l s Joe D i s t r i b u t o r DISTRIBUTOR # 411116 3/2/2008 2:56:06PM Mateo PSA INV 1 S e c t i o n 1 - Buyer Doe, John My C a r USA M820200022 1285 Any S t r e e t Anywhere, OH 44224- 1 MYCAR PENDING REPRINT S e c t i o n 2 - Goods S o l d Item QTY Amount MB7525 1 5105.00 CUSTOM 2 BAY ROLLAVJAY Comment S/N 123456 Purchases: Tax: Freight/Labor: 5105.,00 370.,11 0.,00 Total: 5475.,11 S e c t i o n 3 - Payment Schedule I No. o f j Weekly I Payments I 208 Amount o f Each Paymenr 36.30 Section Total of Payments 7550.40 4 - Terms Of VJeekly Payments Corrmence 03/09/08 Sale (A) T o t a l Cash P r i c e (B) Trade I n S u b t o t a l (A-B) 7.250% (C) S a l e s Tax o f (D) Cash Down Painnent (E) Net Cash P r i c e (^) A d m i n i s t r a t i o n Fee (G) Net Due On P r i o r PSA (H) P r i n c i p a l B a l a n c e (I) Time P r i c e D i f f e r e n t i a l { J ) T o t a l Time Purchase Balance Next Weekly Prr.t. Due: ***36.30*** 5105. 00 0. 00 5105. 00 370. 11 511. 00 4964 .11 30. 00 0. 00 4994 .11 2556. 29 7550. 40 BUYER ACKNOWLEDGES RECEIPT OF THE GOODS LISTED ABOVE AND A COMPLETELY EXECUTED COPY OF THIS AGREEMENT AND WARRANTS THAT THESE GOODS ARE PURCHASED PRIMARILY FOR USE IN THE COMMERCIAL OPERATION OF HIS TRADE OR BUSINESS AND NOT FOR PERSONAL, FAMILY OR HOUSEHOLD USE. THIS AGREEMENT IS SUBJECT TO THE TERMS Al-JD CONDITIONS ON THE MASTER AGREEMENT, WHICH IS ON FILE AT MATCO TOOLS, A COPY OF WHICH HAS BEEN GIVEN TO THE BUYER AND IS INCORPORATED HEREIN AS PART OF THIS AGREEMENT. Buyer/End User Date: THIS AGREEMENT IS ACCEPTED BY SELLER AND HEREBY ASSIGNED UNDER THE TERMS OF THE ASSIGNMENT ON MASTER AGREEMENT Distribucor/Secured Party (Seller! Date: Joe D i s t r i b u t o r A u t h o r i z e d Mateo T o o l s Distributor B u s i n e s s Phone: (300) 555-1212 Pager: (300) 555-5757 Mateo T o o l s P.O. Box 99999 M e t r o p o l i s , Ohio 99999 NMTC, INC. (D/B/A MATCO TOOLS) MATCO TOOLS 4403 ALLEN ROAD, STOW, OHIO 44224 PURCHASE MONEY SECURITY - MASTER AGREEMENT Name Address phone City, State, Zip BiJyer acknowledges receipi of a completely executed copy of this Master Agreement and warrants lhat all Goods are purchased primarily for use in the commercial operation of ihis trade and business and not foi personal, family or household use. Buyer authorizes Setler/Distrit>utor and/or his assignees as inlerested parties as permitted by law to substantiate and investigate the information on his/her credit application and to report and exchange credil information now and in the future concerning his/her performance of this Agreement. This Agreement is subjeci lo the terms and conditions set forth herein and the terms and conditions set forth in all future MDBS-PSA Sales Receipts. This Agreement shall be executed and become effeciive when both Buyer and Seller agree lo the sale of the Goods described iherein and such Goods have t>cen delivered lo and accepied by Buyer. Buyer/End User Dale This Agreemeni is accepted by Seller and hereby assigned under the terms of the assignment stated below. Distributor/Secured Party Dale The undersigned guarantees the payment, when due, to any Holder of said Contract, the entire amount owing with respect to such Contract, in the event of default in payment by the Buyer named herein. The undersigned waives notice of accepiance of this guaranty, notice of any extensions in lime of payment, noiice of sale ofany of said properly and al) other noiices to which Seller may be entitled by law and agrees to pay all guaranteed amounts upon demand withoui requiring any proceeding against Buyer. [Guaranior] Dale Seller's .Assignment to NtATCO TOOLS (Hereinafter called Assignee) FOR VALUE RECEIVED, and subject to the terms of agreement with Assignee, Seller docs hereby sell, assign and transfer the Securiiy Agreement set forth abijve and all Receipts (collectively, the "Contracts") and all Seller's security interest and lien in and right and tille lo ihe Collateral described therein ki NMTC. Inc. (ti/h.la .MATCO TOOt^), ils successors and assigns (colleciivelv. "Assignee"), vvith power to take legal proceedings in ihe name of Seller or As.signce- Seller warrants ihal the Contracts are genuine and in all respects what they purptjrl to be; thai Ihe down payment was made by the Buvcr in cash and not ils equivalent, unless otherwise noied therein, and that no part thereof was loaned directly or indirectly by Seller lo Buyer, ihal said Collateral is free from any olher securiiy inierest or other liens or encumbrances whatsoever, except as created by fhe Contracts, that the Buyer was of at Icasi legal age al Ihc lime of his execuiion ofeach ofthe Conlracis, Ihal Seller knows of no time or instance when Buyer was refused or rejected for credit; and Ihal there is now owing with respeci lo the Conlracts Ihe respeclive amounts sci forth iherein. Upon breach ofany of the foregoing warranties. Seller will, upon demand therefor, purchase ihe Contract forthe respective amounis owing with respeci thereto, plus ail costs and expen.ses paid or incurred by A.ssignee with respeci Ihercio. All remedies of Assignee shall be cumulative and not alternative. Seller guaraniees Ihe payment, when due. to any Holder of said Contract, the entire amounl owing with respect to such Contract, in ihc event of default in payment by the Buyer named therein, in accordance with a Credit Assignment .Agreement of Seller with Assignee, the lerms of whieh arc incorporated herein. Seller waives notice of accepiance of Ibis guaranty, notice of any extensions in time of payment, noiice of sale of any of said properly and all oihi'f notices to which Seller may be emilled by law and agrees to pay all guaranteed amounis upon demand wiihout requiring any proceeding against Buyer. Seller warrants Ihal Ihe description of ihe Collateral listed on ihe Coniracis/Receipis is accurate and complete. VVinri; - M.nci") (.'npy. Y i lli)w • D i s i r i l ' i i r n f C o p y ; F'mk - Mceh.iisics C c p v I. The Seller/Distributor (which term shall mean Seller and any assignee or Holder hereof, as the case may he) hereby sells, and Ihe Quyec/End User (herdnaiter known as Buyer) jointly and severally if more than one, hereby purchases, subject to the Terms and Conditions set forth herein and on the reverse hereof, the Tools and Equipment described tm the reverse and herein called "Goods", delivery and acceptance of which are hereby acbxwledgcd by Buyer, and subjea to conditions slated herein and slated in subsequent MDBS-PSA Sales Receipts (coilecdvely, the "Receipts"), the tools and equipment descnbed in the Receipts, also herein called "Goods", delivery and acceptance of which is hereby acknowledged by Buyer. 2. Buyer agrees to pay MA'fCO. in accordance with the terms set forth in Ihe ai^Iicable Receipts. Buyer a^ees to pay the Time Purchase Balance, which includes a Time Price Differential <as such documented in the Receipt), which is an interest charge, in consecutive weekly installments as scheduled until the entire Time Purchase B3larK:e has been paid in full. Buyer may make more than one scheduled payment at a time, but no partial payments will be accepted by the Seller. Buyer may pay the entire unpaid balance at any time. 3- In Ihe event Buyer pays the full amount due and slated as the Time Purchase Balance before the last scheduled payment is due. Seller shall credit Buyer's accounts with Seller or refund to Buyer in cash (if Buyer has no unpaid accounts outstanding with Seller or such early payment is not done in conjuiKtion with another Purchase Money Security Agreement with Seller) such ponion of the Time Price Differential, if any, to which Seller has not then become entitled, as cakulaied pursuant to the Rule of 78's calculation. 4 To secure ihe payment of the Time Purchase Balance and of any other amounts owing hereunder (coHectively, "Obligations"), Buyer hereby grants to Selier and any Holder hereof a purchase money security interest and lien in and lothe Goods described on the reverse and herein or in any other Receipt, and in addition. Iheri^t to file a UCC-1 Financing Statement creating an additional lien in all tools and equipment now owned by Buyer for use in Buyer's trade ot business, together with any and all similar tools and equipment hereafter acquired, except where prohibited by law. and all products and proceeds thereof (including, without limitation, any insurance proceeds) (collectively, the "Collateral"). 5. Buyer agrees to (a) maintain insurance reasonably acceptable to Seller with respect to the Collateral and, upon Seller's request, provide Seller with evidence of such insurance, (b) execute financing statements, continuation statements and other documents as Seller shall deem necessaiy to perfect or protect its security interest in the Collateral, and in addition, hereby authorize Seller or its agents or assigns to execute and fde, withoui the signature of Buyer, one or more such financing statements if permitted in the relevant jurisdiction, wiih Seller paying the cost of filing all such fmancing statements in all public offices wherever filing is deemed by Seller lo be necessary or desirable, (c) maintain the Collateral free and clear of any and all liens, claims and encumtnances other than those of SCLCT, (d) maintain die Collateral in good operating condition and repair, (e) pay all taxes, levies and assessments imposed or made on Buyer or any of the Collateral when the same shall become due and payable, (f) not merge into or permit the purchase or acquisition of all or a substantial part of its assets by any entity, (g) not sell, lease or remove any Collateral from Buyer's address set forth hCTcin, (h) maintain and permit Seller to inspect Buyer's books and records at Buyer's address set forth herein, (1) permit Seller to enter Buyer's place of business at Buyer's address set forth herein lo inspect the Collateral, (j) pay all Obligations when due, (fc) not become insolvent, or fail to pay ils debts as they become due, or (I) not suffer a material adverse change in Buyer's business or financial condition. 6 If Buver shall fail to comply with Section 5 hereofor otherwise fails topcrfotmany of ils obHgations under this Agreement or under any Receipts, such failure shall constitute a "Default" hereunder. Upon the occurrence ofany Default and at any time thereafter. Seller may, at its option, (a) declare all Obligations immediately due and payable withoui demand, presentment, noiice or other action (each of which is expressly waived by Buyer), (b) cease delivery of any other Goods on credil and cease any other extension of credit lo Buyer, (c) exercise all oftherightsand remedies of a secured party under the Uniform Commercial Code or under any other applicable law. (d) collect, receive and realize upon the Collateral or any part thereof, (e) sell, assign, dispose of and deliver the Collateral or any part thereof at a public or private sale at such price as Seller may deem best, (0 purchase all or any part ofthe Collateral so sold, lo the extent permitted by law. free of any right or equity of redemption in Buyer, which ri^t Buyer hereby releases, (g) charge to Buyer interest on the unpaid portion of the Time Purchase Balance at a default rate of 22.5% Annual Percentage Rale or ihe maximum rate permitted by law. whichever is lower, and (h) charge a late payment fee equal to the greater of (I) Three Dollars ($3.00), or (2) five percent (5%) of the portion of Ihe Weekly Payment Amount(s) then due. Buyo" will assemble the Collateral and make it available to Seller at such places as Seller shall select. All costs of exercising such remedies and oiherwise collecting the Obligations shall be payable by Buyer and coasidered a part of the Obligations. 7. If more than one person signs this agreement, the obligation shall t>c joint and several. Any provision of this agreement which is in conflict with the statutes ofthe applicable jurisdiction is hereby amended to conform to the minimum requirements of such statutes. CredilOT is authorized to investigate Buyer's credit, and to repwi Buyer's performance on this agreement, and to verify employment and income references. Buyer agrees to notify- the Seller in writing of any change of address 8. SeIler'T)isu-ibuior is an independent contractor and is not the Agent or Rmployeeof NMTC, Inc. d/Va MATCO TOOLS or assignee (herein identified). .Assignee has sole discreiion lo accept assignment of this agreemeni. Neither MATCO TOOLS, nor Assignee shall have any responsibility lo Seller/Distributor ot Buyer or any other party if Assignee does not accept assignment of this Agreement. 9. Tliis Agreement, together with any Receipts, represents the entire integrauxl contraci ofthe panies on this subject. Seller's delay, omission or election not to exercise any right, power or remedy hereunder shall not be construed as waiving or acquiescing in any breach omission or failure of any of Buyer's duties of performance hereunder. This Agreemeni and allrighw,powers and remedies hereunder shall be enforceable under and interpreted in accordance with the laws of the State of Ohio (withoui giving effect lo the conflict of laws-'rulcs thereoO. In the event that any provision of this Agreement is held to be illegal or unenforceable, such provision shall be deemed separate, and the remaining provisions of Ihis Agreement shall survive and remain enforceable according to their tenure and effect. Ihis Agreement .shall bind and inure to the benefit of Buyer and Seller and their respective heirs, executors, successors, representatives, trustees and assigns. 10. Seller/Distributor warrants that the Goods will be fit for the ordinary purposes for which such Goods are used in the auttsnolive/manufacturing industry. If any ofthe Goods are found by Seller lo be nonconforming, such Goods will, at Seller's option, be replaced or repaired at Seller's cost. THE PARTIES HERtTfO EXPRESSLY AGREE THAT BU>'ER'S SOLE AND EXCLUSIVE REMEDY AGAINST SELLER SHALL BE FOR THE REPAIR OR REPLACEMENT OF NONCONFORMING GOODS AS PROVIDED HEREIN. The sole purpose of tlie stipulated exclusive remedy shall be to provide the Buyer with free repair and replacement of nonconforming Goods in the manner provided herein. THE FOREGOING WARRANTS' IS IN LIEU OF A L L OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDINC THOSE OF MERCHANTABILITY OR FITNESS FOR ANV PURPOSE NOT EXPRESSLV SET FORTH HEREIN. TIIE FOREGOING W A R R \ N 1 V EXTENDS ONLV TO THE ORIGINAL BUYER OF THE GOODS AND IS NOT TRANSFERABLE. IN NO EVENT S H A L L SELLER BE L I A B L E FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT INCLUDING BUT NOT LIMITED TO BREACH OF ANY OBLIGATION IMPOSED ON SEILLER HEREUNDER OR IN CONNECFION HEREWITH OR THE USE, STOR,\CE, DISPOSAL OR HANDLING OF THE GOODS SOLD HEREUNDER. INCIDENTAL AND CONSEQUENTIAL DAMAGES FOR P I ' R P 0 S F : S HEREOF SHALI, INCLUDE, WITHOUI LIMITATION, LOSS OF LSE., INCOMEOR PROFIT. INCREASED EXPENSE OF INSPECTION, OPER,\TION OR D O W N - T I M F : . OR LOSSES SUSTAINED AS THE RESULT OF INJURY (INCLUDING DEATH) TO ANY PERSON, OR LOSS OF OR D A M A G E TO PROPERTY (INCLUDING BLT NOT LIMITED TO PROPERTV HANDLED OR PROCE,SSED BV THE USE OF THE GOODS). BUVER S H A L L INDEMNIFY SELLER AGAINST A L L LIABILITY, COS! OR EXPENSE WHICH M A V BE SU.STAINED BV SELLER ON ACCOUNT OF .^NY SUCH LOSS, D A M A G E OR INJURY. BUYER ASSUMES A L L RISK AND LIABILITV FOR LOSS OR DAMAGE RESULTING FROM TIIE USE, HANDLING STORAGE OR .APPLICATION OF T H E GOODS DELIVERED HEREUNDER. CREDIT APPLICATION SUBJECT TO MATO TOOLS / P.S.A CREDIT APPROVAL This ^plication is for purpose of obtaining credit to purchase Mateo Tools and equipment from an .Authorized Mateo Distributor for use in the commercial operation of his or her trade and business. The .Malco Distributor may assign the Purchase Security ^\greemcnt for the mechanic to Mateo Toob .'' P.S.A. Application must be ctHnpleled In its entiret>^ for credit consideration SECTION A SS;; L E G A L NAME DATE OF BIRTH / .ADDRESS APT BOX CITY STATE ZIP LIVE WITH PARENTS • STREET RENT • OWN • ROUTE HOW LONG: Yrs Mos ROUTE D.\Y -. • CELL: HOME PHONE: SPOUSE NAME I>ivers License -1 ST.ATE: FORiMER .AJJDRESS STREET APT BOX STATE ZIP now-LONG; Yrs CITV SECTION B Mos E M P L O Y M E N T HISTORY CURRENT F.MPLOYER PHONE: .ADDRESS CITY STREKT STATE SUPERVISOR HIRE DATE ZIP NIH" INCOME ( W E E K L Y POSITION c^n^^ST.ATE PREvioL's F ; M P L O Y E R PHONE SUPERVISOR HIRE D.ATE NET INCOME (WEEKL'i") SECTION C OUTSTANDING DEBTS MORTGAGE / LANDLORD PHONE MONTHLY PA\'MENT S Cl'lT ST.ATE SECTION D PERSONAL REFERENCES - TWO (2) REOUIRED 1. PARENTS, CUT/STATE PHONE _REI..ATIONSHlP_ 2. FA>nLV M E . \ I B F : R (NOT LIVING W l APPLICANT) CrrV/STATE PHONE _REL^\TIONSHlP_ 3. FRIEND/CO-WORKER_ CriY/ST.ATE PHONE RELATIONSHIP ,\.MOUNT REQUESTED S_ ITE.MS NEEDED 'I'he information stated in thi."? application is warranted to bo true. I am authorized to make this application and slalemenl to obiain credit from the Malco Distributor and/or his or her .xssignee and agree lo pay according to the terms of sale as stated on each invoice Mateo Distributor and/or his or her assignee, as interested parties as pennitted by law, are hereby authorized lo substantiate and investigate the infomiaiion contained on this application and to report and e.\ehange credit information now and in the future conceming my pcrformanct of this agreemeni. APPLICANTS SIGNATURE D.ATE D.AIE DIS TRIBUTOR SUBMriTING OF F I C E / D I S T R I B U T O R U S E O N L V MA ICO .-XPPROVAL S_ ACCOUNT NUMBER ADDITION.-U. NOTES: _PR0M0T10NALQU.-\LIFIC.A'nONS APPENDDC D EXHIBIT J MATCO TOOLS DISTRIBUTOR'S PURCHASE-SECURITY AGREEMENT RECOURSE CREDIT ASSIGNMENT AGREEMENT THIS AGREEMENT, made and entered into at Stow, Ohio, this day of by and between NMTC, Inc. d/b/a MATCO TOOLS, a Delaware Corporation (herein referred to as "Assignee"), and of (herein referred to as "Distributor"). WITNESSETH, That I WHEREAS, Distributor is and has been serving as an independent Distributor for NMTC, Inc. d/b/a/ as Malco Tools, herein referred to as MATCO TOOLS, engaging in the sohcitation for sale and sale of MATCO tools and related equipment to professional mechanics; and WHEREAS, Assignee is willing to provide financing for certain of such purchases, provided Distributor agrees to and complies with the terms and conditions contained in this Agreemeni; NOW, THEREFORE, the parties hereto agree as follows: 1. From time to time after the date hereof. Distributor shall present to Assignee for piu-chase executed credit documents and related materials, in form and substance satisfactory to Assignee, providing for the assignment to Assignee of rights to collection of amounts payable representing the time purchase balance due in connection with the sale by Distributor of tools, equipment and/or related products purchased from MATCO TOOLS. Upon receipt of such documents and materials, it shall be within the sole discretion of Assignee whether or not to piu-chase the same, and noihing herein shall be construed as imposing any obligation upon Assignee to make any purchasesfromDistributor. 2. The purchase price to be paid to the Distributor by Assignee for credit documents accepted for assignment shall be ninety-five percent (95%) of the net cash price (principal amount of purchase included m the credit document being accepted by Assignee not including amoimts previously assigned) thereof unless otherwise specified by MATCO TOOLS. The five percent (5%) deduction shall be arefundablereserve which shall be held by Assignee as security for all obligations of Distributor to Assignee hereimder or now existing or arising during the continuance hereof or with respect to any credit documents purchased during the continuance of this Agreement; suchreserveshall be (i) adjusted annually by Assignee based on the balance of Distributor's outstanding credit contracts, (ii) applied by Assignee in payment of Disfributor's uncollectible credit contracts as detennined by Assignee and (iii) paid to the Distributor, net of all outstanding obligations owed to MATCO TOOLS, only when Distributor terminates as a MATCO TOOLS Distributor or elects to discontinue this Recourse Credit Assignment Agreement. Upon acceptance of any such documents, payment shall be effected by Assignee arranging for immediate credit against Distributor's purchase account with MATCO TOOLS (amounts due MATCO TOOLS in the ordinary course of business, exclusive of amounts outstanding under notes or other credit documents provided under other debt agreements between Distributor and MATCO TOOLS) and a confuming docimient will be forwarded lo Distributor. 3. Distributor hereby warrants and represents to and agrees to Assignee as foilows: (a) -All credit documents pre.sented to Assignee for assignmeni hereunder shall be full, correct, complete and genuine, and shall be fully and properly executed, shall accurately and truthfully describe the date(s) of purchase, items purchased and purchase price(s) charged and .shall not have been offered previously to any other financial institution or other entity for purchase or as collateral against advances; I (b) All credit documents presented to Assignee for assignment hereunder shall relate to and arise from the sale of MATCO TOOLS, producis, equipment and'or related products sold and to be utilized primarily for the commercial conduct of trade or business of the customer executing such documents and in no event shall any such credit docimients have arisen from or relate to any sales of products for primarily personal, family or household purposes, or sales of products marketed by any entity other than MATCO TOOLS; (c) Each customer executing credit documenis presented to Assignee or assignment hereunder is creditworthy and Distributor releases Assignee from any claim or liability related to or arising out of Assignee's check on or determination of the creditworthiness of the customer and/or the acceptance or rejection by Assignee of any credit documents presented hereunder; (d) Withoui prior written consent ofthe Assignee, Distributor shall in no event nor at anytime prior to or after a sale of products, modify the terms of any instrument purchased by Assignee; (e) Distributor agrees to collect amounts payable representing the time piirchase balance due in coimection with the sale by Distributor of tools, equipment and/or related products purchased from MATCO TOOLS and financed pursuant to this Agreement, and further hereby authorizes Assignee to debit Distributor's Purchase Account with MATCO TOOLS for the amounts collected for such recoursed PSA's; (f) Distributor shall at all times, as an independent contractor, operate in his own name and be solely answerable for the costs and expenses, consequences and damages arising out of the conduct of his business as a distributor for MATCO TOOLS; (g) Distributor shall at all times comply with the procedures from time to time established by Assignee with respect to credit limits, handling of credit documenis and other activities related to fmancing of sales of MATCO TOOLS products as contemplated hereunder; and (h) The Distributor agrees that, upon Assignee's request to make a particular repossession, he will cooperate as instructed by Assignee in making such repossession provided that it can be effected without Breach of Peace, and Distributor also agrees that his Open Purchase Account will be charged in an amount equal to 50% of the Fair Market Value of the repossessed product(s) as established pursuant to MATCO TOOLS' Repossession Policy, as same may be revised from time to time. 4. Following acceptance of the credit documents hereunder Distributor and Assignee agree to the following terms and conditions: (a) UfKjn failure by Distributor to remit payments or other funds collected on behalf of Assignee, pursuant to Paragraph 3 (d) above. Distributor hereby authorizes Assignee and MATCO TOOLS to debit Distributor's Purchase Account with MATCO TOOLS in an amount or amounts equal to the sums collected but not remitted. In addition, MATCO TOOLS may charge Distributor an administrafive fee (currently set at S25 per occurrence, per contract) for delinquent, insufficient payments or inaccurale reporting as consideration for MATCO TOOLS' time and efforts in collecting monies, additional correspondence with you, credit bureaus and oihers, and administrative time and costs to correct data. Any amounts not remitted by Distributor within 10 days of their collection shall be deemed funds noi promptly remitted and subject to diis provision. (b) .Any documents, notes, agreements, or other contracts assigned by Distributor to Assignee pursuant to this Agreement which are later shown or alleged to be, in whole or in pan, altered, amended, modified, forged, or not genuine, accurate, or in compliance with the terms of diis Agreement in any respeci, shall be immediately reassigned by Assignee to Distributor and upon such reassignment Distributor hereby agrees to accept such assignment and immediately, wiihout set-off or deduction ofany kind, agrees to pay Assignee the full amount of any balance then outstanding thereon. Upon failure by Distributor to pay Assignee as stated above, upon any reassignment of documents wiihin 10 days of the date of reassignment. Distributor hereby authorizes Assignee and MATCO TOOLS to debil Distributor's Purchase Account in an amount equal to the amounLs due on the reassigned docunienLs. 'fhis Paragraph (b) shall noi apply in the case when Assignee has, by iis OVVTI action, or with its wTilten con.sent, been a party to an amendmeni or modification of any document, note, agreement or other contraci; (c) Distributor shall not, without prior writien consent of Assignee, release any security interest collateral subject to documents assigned to Assignee hereunder, modify or substitute collateral specified in any such documents, consent to or accept retum ofany collateral subject to or covered by any other assigned documenis or effect repossession of any such collateral. Any of the foregoing actions on the part of Distributor, without the written consent of Assignee shall be deemed to be an alteration of the documenis pursuant of paragraph 4 (b) above; (d) In the event of default by customer of any installment payable on the due dale there of, or in the prompt performance of any other obligation to be performed under the credit document or contract by customer, after the assignment thereof by Distributor to Assignee, Distributor authorizes MATCO TOOLS to charge his Purchase Account an amount equal to 50% of die outstanding balance. .MATCO TOOLS and Distributor agree that any funds collected thereafter will be credited at 50% of amounts collected net of collection expenses to both Distributor and MATCO TOOLS; (e) In the event Distributor terminates as a MATCO TCX)LS Distributor, regardless of the reason for terminations, then Distributor agrees to accept as a charge to his Purchase Account an amount equal to 50% of the outstanding balances of recoursable contracts, and to remit 50% of all funds or proceeds collected thereafter within 10 days to MATCO TOOLS, MATCO TOOLS agrees to credit 50% of all fimds or proceeds collected, net of all collection expenses, thereafter to the Distributor or apply same lo amoimts due Assignee from Distributor; and (f) Notwithstanding anything to the contrary Distributor grants to Assignee, a security interest in all such credit document(s) or contract(s) and Assignee shall have the right lo continue lo possess the same and collect from the customer(s) obligated thereon all amounts due thereon and apply the same againsi amounts due Assignee from Distributor or due MATCO TOOLS from Distributor. 5. In the event Distributor desires to include ponions of all of an unpaid balance owing to Distributor by a particular customer with new purchases by the customer, and assign all such amounts to Assignee pursuant to this Agreement, such a profwsal will be considered, provided the total net cash price of new purchases will equal or exceed minimum amounts as may be required under the policies of the Assignee. If Distributor desires to make such a proposal, he shall do so in writing, including therewith a completed credit application, as may be required by the Assignee, on the customer and a copy of the customer's sheet showing charges, credits, total owing, and payment records, and such other information relating to the customer or transactions as Assignee may reasonably request. The decision on acceptance ofthe proposal shall be wiihin the sole discretion of Assignee. 6. The liabilit>' of Distributor hereunder shall not be affected by any settlement, extension, forbearance or variation in terms which Assignee may grant in connection with any credit documents acquired hereunder or by the discharge or release of the obligations of the account debtor by operation of law or otherwise. Assignee makes no representation or warranty to Distributor conceming the validity, enforceability or sufficiency of any credit documents and'or other materials fumished to Distributor by Assignee. 7. This Agreemeni may be terminated at any time by Distributor or Assignee by written notice, but such termination shall not affect the respecliverightsand obligaiions of either party hereunder as to credit documents theretofore purchased by Assignee, inciuding all repurchase and reassignment obligations. 8. It being anticipated that Distributor and/or other parties to credit assignments with Assignee may assign to Assignee credit documents covering sales lo a panicular customer which occurred on more than one occasion, it is understood and agreed thai, unless otherwise agreed in writing beiween Assignee and Distributor or required by law, payments received from such a customer will be applied against the respective payment obligations of the customer in a manner such that all current and past due obligations under the documents beanng the earliest date will be treated as satisfied first, all current and past due obligations under the documents bearing the next-earliest date will be treated as satisfied next, and so-on. with the current and past due obligations under the documents bearing the most recent date being treated as satisfied only after current and past due obligations under documenis bearing earlier dates have been satisfied. This Agreement contains the entire understanding of the parties with respect to the transactions contemplated hereby and the same shall be amended or modified only by written agreement specifically referring hereto. None of the provisions hereof shall be deemed to in any way limit such rights as either party hereto may have by statute or at law or in equity as against the other pany, and any remedies provided for herein shall be in addition to and not exclusive of any other remedy available by statute or under principles of common law of equity and such remedies may be exercised by either party consecutively or concurrently and such exercise shall not be deemed to waive any other rights orremedieswhich may be available to a part>'. 10. This Agreemeni shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, successors and assigns, provided however, the same shall not be assigned by the Distributor without prior written conseni of Assignee thereto. 11. This Agreement shall be govemed by and construed in accordance with the laws of the State of Ohio. IN WITNESS WHEREOF, the parties hereto caused this Agreement lo be executed as of the date and year first written above. SIGNED IN THE PRESENCE OF: NMTC, Inc. d/b/a MATCO TOOLS BY Richard Smearcheck ITS: Director, Financial Services DISTRIBUTOR: Mateo Distributor Number (signature) (printed name) K.)KM rRANWH -M-Hnis^d ^" W Appendix D E x h i b i t K-1 Mateo T o o l s Joe D i s t r i b u t o r DISTRIBUTOR ff 411116 3/2/2008 3:05:41PM New Tech PSA INV 3 S e c t i o n 1 - Buyer Doe, Ralph 3 My Car USA N009999999 1122 5 t h VJay Somewhere, OH 44224- MYCAR PENDING REPRINT S e c t i o n 2 - Goods S o l d I tern QTY Amount MB6520BG 1 2095.00 BLACK/GOLD MB6520 Purchases: Tax: Freight/Labor: 2095.00 151.89 0.00 Total: 2246.89 Comment S/N 123456 S e c t i o n 3 - Payment Schedule No. o f 1 Amount |1 T o t a l 1 Weekly Monthly 1 o f Each I1 of 1 Payments I Payments| Payment I Payments 1 Commence ! 24 I 105.501 2538.00 I 03/09/08 S e c t i o n 4 - Terms Of S a l e (A) T o t a l Cash P r i c e (3) Trade I n S u b t o t a l (A-B) 7 .250% (C) S a l e s Tax o f (D) Cash Down Payment (E) Net Cash P r i c e (F) A d m i n i s t r a t i o n Fee (G) Net Due On P r i o r PSA (H) P r i n c i p a l B a l a n c e (I) Time P r i c e D i f f e r e n t i a l ( J ) T o t a l Time Purchase Balance B e g i n n i n g B a l a n c e : 2538.00 Payment: 105.50 2095. 00 0. 00 2095. 00 151. 89 210. 00 2036. 89 30. 00 0. 00 2066. 89 471. 11 2538. 00 Current Balance: 2432.50 M o n t h l y Payment: **-*105. 50*** BUYER ACKNOWLEDGES RECEIPT OF THE GOODS LISTED ABOVE AND A COMPLETELY EXECUTED COPY OF THIS AGREEMENT AND WARRANTS THAT THESE GOODS ARE PURCHASED PRIMARILY FOR USE IN THE COMMERCIAL OPERATION OF HIS TRADE OR BUSINESS AND NOT FOR PERSONAL, FAMILY OR HOUSEHOLD USE. THIS AGREEMENT IS SUBJECT TO THE TERMS AUD CONDITIONS ON THE MASTER AGREEMENT, WHICH IS ON FILE AT MATCO TOOLS, A COPY OF WHICH HAS BEEN GIVEN TO THE BUYER AND IS INCORPORATED HEREIN AS PART OF THIS AGREEMENT. Buyer/End User Date: THIS AGREEMENT IS ACCEPTED BY SELLER AND HEREBY ASSIGNED UNDER THE TERMS OF THE ASSIGNMENT ON MASTER AGREEMENT. Distributor/Secured Party (Seller) Date: Joe D i s t r i b u t o r A u t h o r i z e d Mateo T o o l s Distributor B u s i n e s s Phone: (300) 555-1212 Pager: (300) 555-5757 Mateo T o o l s P.O. Box 99999 M e t r o p o l i s , Ohio 99999 Appendix D E x h i b i t K-2 Mateo T o o l s Joe D i s t r i b u t o r DISTRIBUTOR # 411116 3/2/2008 2:56:06PM D i s t r i b u t o r Gold PSA INV 2 S e c t i o n 1 - Buyer Doe, J i m My Car USA N050099999 1285 Any S t r e e t Anywhere, OH 44224- 2 MYCAR PENDING REPRINT S e c t i o n 2 - Goods S o l d I tem QTY Amount MB7525 1 5105.00 CUSTOM 2 BAY ROLLAWAY Purchases: Tax: Freight/Labor: 5105. 00 370. 11 0. 00 Total: 5475. 11 Comment S/N 123456 S e c t i o n 3 - Payment Schedule I No. o f I Amount | T o t a l | I Weekly | o f Each | of | I Payments| Payment | Payments I I 208 I 36.301 7550.40 | Weekly Payments Commence 03/09/08 S e c t i o n 4 - Terms Of S a l e (A) T o t a l Cash P r i c e (B) Trade I n S u b t o t a l (A-B) 7.250% (C) S a l e s Tax o f (D) Cash Down Payment (E) Net Cash P r i c e (F) A d m i n i s t r a t i o n Fee (G) Net Due On P r i o r PSA (H) P r i n c i p a l Balance (I) Time P r i c e D i f f e r e n t i a l (J} T o t a l Tim.e Purchase Balance Next Weekly Pmc. Due: ***36.30*** 5105. 00 0. 00 5105. 00 370. 11 511. 00 4964. 11 30. 00 0. 00 4994. 11 2556. 29 7550. 40 BUYER ACKNOWLEDGES RECEIPT OF THE GOODS LISTED ABOVE AND A COMPLETELY EXECUTED COPY OF THIS AGREEMENT AND WARRANTS THAT THESE GOODS ARE PURCHASED PRIMARILY FOR USE IN THE COMMERCIAL OPERATION OF HIS TRADE OR BUSINESS AND NOT FOR PERSONAL, FAMILY OR HOUSEHOLD USE. THIS AGREEMENT IS SUBJECT TO THE TERMS AND CONDITIONS ON THE MASTER AGREEMENT, WHICH IS ON FILE AT MATCO TOOLS, A COPY OF WHICH HAS BEEN GIVEN TO THE BUYER A^^D IS INCORPORATED HEREIN AS PART OF THIS AGREEMENT. Buyer/End User Date: THIS AGREEMENT IS ACCEPTED BY SELLER AND HEREBY ASSIGNED UNDER THE TERMS OF THE ASSIGNMENT ON MJ^STER AGREEMENT. Distributor/Secured Party (Seller! Date: Joe D i s t r i b u t o r A u t h o r i z e d Mateo T o o l s Distributor B u s i n e s s Phone: (300) 555-1212 Pager: (300) 555-5757 Mateo T o o l s P.O. Box 99999 M e t r o p o l i s , Ohio 99999 MATCO TOOLS APPENDDC D EXHIBrr L DISTRIBUTOR LEASE AGREEMENT I, an authorized MATCO T(X)LS Distributor, agree to act as a lessor for NMTC, Inc. dba MATCO TOOLS for certain products which arefinancedon Mateo's Lease Package. It is understood that: 1. MATCO TOOLS will offer a Lease Financing Package for the express use of its Distributors. 2. MATCO TOOLS will only lease the approved list of equipment, and this list may be amended from time to time. 3. The Distributor will submit all necessary documentation, including, but not limited to. Lease Applications, Agreements, UCC-l's, Down Payments and/or Security Deposits. 4. MATCO TOOLS will pay the Distributor a price of not less than 90% ofthe value of the leased equipment. This amount may be modified at anytimeat the sole discretion of MATCO TOOLS. The payment will be in the form of a credit towards the Distributor's Open Purchase Account with MATCOTOOLS. 5. MATCO TOOLS will be responsible for collection of the lease payments until suchtimerepossession is necessary. At this time, the Distributor will make every effort to effect repossession, as long as the Distributor does not "Breach the Peace." 6. The Distributor shall either: • Coordinate the retum of any repossessed merchandise to a location defined by MATCO TOOLS, or • Purchase the repossessed merchandise at 75% of a pre-established fair market value. The decision is to be mutually agreed to by both the Distributor and MATCO TOOLS. 7. Any documents found or alleged not to be fiill, correct, complete and genuine, and not properly executed, will be immediately assigned to the selling Distributor for the amount owing at the time of assignment. 8. This Agreement will cease upon tennination of the MATCO Distributorship. Furthermore, either party providing written notice of the other may cancel this Agreement at any time. Wimess: Mateo Distributor's Signature Name: Mateo Distributor's Number Title: Date: X FOR.y FRAN'lXK:-LA-RcviKd i ; 06 NMTC, Inc. d/b/a MATCO TOOLS m 4403 Allen Road, Stow, Ohio 44224 MATCO TOOLS SHOP OWNER LEASE APPLICATION This application is forthe purpose of leasing MATCO equiprrrent for use in acommerciat business of servicing, repairing and maintaining passenger vehicles, trucks and related types of vehicles. PLEASE COMPLETE ALL REQUESTED INFORMATION. BUSINESS INFORMATION FULL NAME OF BUSINESS • Corporalbn • Sole Partnership D Proprietofship BUSINESS STREET ADDRESS PHONE NO. CITY / COUNTY / STATE / ZIP CODE IN BUSINESS SINCE? FEDERAL l.D. NUMBER NO. OF EMPLOYEES BUSINESS REFERENCES LANDLORD / MORTGAGE HOLDER PROPERTY STATUS • Buy • CITY/STATE/ZIP CODE MONTHLY PMT. PHONE NO. Rent • Lease BANK TYPE{S) OF ACCOUNT • Loan • Checking CITY/STATE/ZIP CODE PHONE NO. CONTACT TRADE #1 PHONE NO. CONTACT TRADE#2 PHONE NO. CONTACT TRADE #3 PHONE NO. CONTACT TITLE SOCIAL SECURITY NO. • Saviigs GUARANTOR / PRINCIPAL'S INFORMATION FULL NAME STREET ADDRESS / CITY / STATE / ZIP CODE FULL NAME (It more than one signature} PHONE NO. TITLE SOCIAL SECURITY NO. STREET ADDRESS / CITY / STATE / ZIP CODE PHONE NO. EQUIPMENT DESCRIPTION COST $ The information stated in this application is warranted to be true. 1 am authonzed on behalf of this business to make ttiis app'cation and statement to enter into a lease wth NMT iK.d/b/a MATCO TOOLS andagree to pay according to the terms as stated. IMTCOTOOLS.as perm fttedb/la^^ isherebyauthorized :o substantiate and irivestigate the information contained in this application and to report and exchange credit infomiation now and in the future concerning my performance of this agreemenL Guarantor's Signature Date Dislribulor Name Distrtoutor Acct. No. BLUE-MATCO Financial Services- WHrTE-DisJibutor • CANARY-Cusiomer Mateo Form: SOLA-08/94 S0LA1 PHONE . MAIL . FAX MATCO TOOLS - Attn: CFS 4403 Allen Road. Stow, O H 44224 • Fax: (330) 929-5026 NMTC, Inc. d/b/a MATCO TOOLS MATCO TOOUS 4403 Allen Road, Stow, Ohio 44224 SHOP OWNER LEASE APPLICATION This application is forthe purpose of leasing MATCO equipnient for use in a conmnerclal business of servicing, repairing and maintaining passenger vehicles, trucks and related types of vehicles. PLEASE COMPLETE ALL REQUESTED INFORMATION, BUSINESS INFORMATION FULL NAME OF BUSINESS • Corporation • Partnershp • BUSINESS STREET ADDRESS PHONE NO. CITY / COUNTY / STATE / ZIP CODE IN BUSINESS SINCE? FEDERAL l.D. NUMBER NO. OF EMPLOYEES Sole Proprietorship BUSINESS REFERENCES CITY/STATE/ZIP CODE LANDLORD / MORTG/\GE HOLDER PROPERTY STATUS • Buy • Rent PHONE NO. • MONTHLY PMT. Lease BANK CITY/STATE/ZIP CODE PHONE NO. CONTACT TRADE #1 PHONE NO. CONTACT TRADE #2 PHONE NO. CONTACT TRADE #3 PHONE NO. CONTACT TITLE SOCIAL SECURITY NO. TYPE(S) OF ACCOUNT • Losffi • Checking • Savings GUARANTOR / PRINCIPAL'S INFORMATION FULL NAME STREET ADDRESS / CITY / STATE / ZIP CODE FULL NAME (If more than one signature) PHONE NO. TITLE SOCIAL SECURITY NO. STREET ADDRESS /CITY / STATE /ZIP CODE PHONE NO. EQUIPMENT DESCRIPTION COST $ The information stated in this application is warranted to be true. 1 am auihonzed on behalf of this businesstomake this applicat-on and stalenert to enter into a lease with NMTC Inc.d/t/a MATCO TOOLS and agree to pay according to the terms as stated. MATCOTOOLS.aspermitled by law, is hereby authorized to substantiate and investigate the information contained in this applicabon andtoreport and exchange credit information now and in the future concerning my performance of this agreemenL Guarantor's Signature Date Distnliutor Nanie Distributor Acct. No. H.UE-MATC0 Financial Sewices* WHtrE-Dislributor • CANARY-Custofner Mateo Fofm: SOLA-08/94 SOLA1 PHONE . MAIL . FAX MATCO TOOLS - Attn: CFS 4403 Allen Road, Stow, OH 44224 • Fax: (330) 929-5026 NMTC, Inc. d/b/a MATCO TOOLS m 4403 Allen Road, Stow. Ohio 44224 MATCO TOOLS SHOP OWNER LEASE APPLICATION This application is forthe purpose of leasing MATCO equipment for use in acommerclal business of servicing, repairing and maintaining passenger vehicles, trucks and related types of vehicles. PLEASE COMPLETE ALL REQUESTED INFORMATION. BUSINESS INFORMATION FULL NAME OF BUSINESS • Corporation • Sole Partnership D Proprietorship BUSINESS STREET ADDRESS PHONE NO. CITY / COUNTY / STATE / ZIP CODE IN BUSINESS SINCE? FEDERAL t.D. NUMBER NO. OF EMPLOYEES BUSINESS REFERENCES LANDLORD / MORTGAGE HOLDER PROPERTY STATUS • Buy • CITY/STATE/ZIP CODE PHONE NO. Rent • BANK TYPE(S) OF ACCOUNT • lom • Checking MONTHLY PMT. Lease CITY/STATE/ZIP CODE PHONE NO. CONTACT TRADE #1 PHONE NO. CONTACT TRADE #2 PHONE NO. CONTACT TRADE #3 PHONE NO. CONTACT TITLE SOCIAL SECURITY NO. • Savings GUARANTOR / PRINCIPAL'S INFORMATION FULL NAME STREET ADDRESS / CITY / STATE / ZIP CODE FULL NAME (If more than one signature) PHONE NO. TITLE SOCIAL SECURITY NO. STREET ADDRESS / CITY / STATE / ZIP CODE PHONE NO. EQUIPMENT DESCRIPTION COST $ The information stated in this application Is wan-antedtobe tnje. 1 am auSiorized on behalf ofttiisbusinesstomake this applicat-on and statement to enter into a lease with NMTC, Inc. d.1)/a MATCO TOOLS and agree to pay accordingtotheterms as stated. MATCOTOOLS, as permitted by law, is hereby authorized to su theinformaSon contained in this application andtoreport and exchange credit information now and in the future concerning my performance of this agreemeni Guarantor's Signature Dale Distn'bulor Name Dislribulor Acct. No. K.UE-MATC0 Financial Services* WHfTE-Disrributor • CANARY-Cuslomer Mateo Form: SOLA-08/94 SOLA1 PHONE . MAIL • FAX MATCO TOOLS - Attn: CFS 4403 Allen Road. Stow, OH 44224 • Fax: (330) 929-5026 N0.673- XXXX NMTC, Inc, d/b/a/ MATCO TOOLS 4403 Allen Road, Stow, Ohio 44224 MATCO TOOLS EQUIPMENT LEASE AGREEMENT 1) L E S S E E INFORMATION 2) L E A S E INFORMATION Shop Name: A) Term (In Months) # Attn. To: B) Monthly Rental (Base) $ Street Address: C) Tax Rate (Percentage) D) Tax Amount % (BxC) $ City/County: E) Total Monthly Rental (B+D) State/Zip: F) Value Of Equipment (AxE) G) Advance Payments (Ex2) LESSOR INFORMATION DIst. Name: H) Remaining Balance (F-G) $ Account. No.: 1) First Payment Date j j 3) EQUIPMENT DESCRIPTfON Item Number Description/Serial Number Sale Amount $ 4) CMRRFNT PAYOFF n i l F NDTF/I FARF MIIMRFR ffi 5) TOTAL AMOUNT TO FINANCE (3 + 4) $ Made this 20 , by and between L e s s e e and N M T C , Inc. dba Mateo Tools, day of "Assignee". 4403 Allen Road, Stow, Ohio 44224. The equipnnent subjeci to this lease will be used lor business or ccmmercial use only, and v/ill be located at the address alDove, unless Lessee and Assignee agree otherwise, and in writing. Both parties hereby declare and understand that no agreement, written or verbal, exists modifying or altering this agreement, or has been made a s the inducing cause for the execution ol this agreement, and Lessee acknowledges that he has read this agreement before signing and understands the terms thereof. (See reverse) B V EXECUTION OF THIS AGREEMENT LESSEE ACKNOWLEDGES RECEIPT OF ALL GOODS LISTED ABOVE. SIGNATURES Lessee Name {Shop} Date Guarantor's Name (Prinl) Guarantor's Signature Rsv. o&cz Lessor (Distributor) Date Lessor Name (Print) Date Assignee (Malco Authorized) Mateo Tools 4403 Allen R o a d • Slow. O H 4^224 800-433-7C98-3 • Fax; 330-926-5322 (2/ BLUB COPIES - Uaico, niMndal Services . WHITE • Dislribulor • CANARY. L»tm Date rERfvlS AND C0NDiTI0r>JS I. ir,!3 --jise.-nenl s-isciivc cn Hie oa\2 i.is Eqji-rr.anl Is sliriisii '.0 L'le Lessee ar-d i^iM 21 il^.e ei^it! c! Ihe periia si,iC:li-i o-i Ine 'Jvj'sa rsr^o: or ?. r-s A^jiemenl is U:n lor me fteriQC anci nai :j!;;ct or ^-^ii-v'.Oiki.ng w.s. II. Lsssae sliaC i(id--T.n:h/ a.nd lold Lessor horrr:!=i3 fo-m any iialinty cl any kind 3?iS!ig ou! cr Die pcssession. mslr^ianancs. -jsa, cpsr^liao andcr -shia of i'^ Isiicd Equii^iant. -.v.^ejiei' d^laciivs c-r .TOI. ro 5ny oediiiSiors becay-e t2- T^e [i-'s \o l-'e Equipmera heiei'i leassd and lo EU r^placsir^enls or s;.DSii'.jiiCn''.s ifiErsior i; sn sncfl 'SirsT,, ID le£:or. 3. In3^:3.v5 - T.-g sr-rii -^sponsit^e !of y:ov:ciirg i';s.f2-^;e covetsgs ir^T^ ^ ~ y;^ c_;rr =t jjcaci^ile Eo ll'ia ,E=SCI. pc.;-c!."c; T-'e i.ti';'ji .;g?.-!i3; :J l abililv or !iJ33 ••'i-li.y iig a Si^d inBii and sr ;cr! .:o^'0•a3e bssea ;he ' -^-jni viKi; ^;:.:Lr; : M '^aii'i::^ l^s Lasso:- as l^ss ssyjc end ;;;v::^jj i^u;: 1 =:;! .^1 3 " ; ; ! Icji d^r£li:yi ol . s A^ Svi-'irii :ird fvjii J;..-i;j'. .Essor .-. :^ Jroo! o( -:J:II ec'.ofaije. ~!.c- '^•-"i.n n \ ;-v\s cl l^5 :!::L]i.:-e l i l t aie i.Cjt;; la :e. ;iv tr.-j c-i:j:.fr.soi c^ ir\; :efiT of '••••e 'i;:^s:r!;''.r . [-m :-.^--:e i-cri! :fi3 Lesser:« i^; Lasses. 4. LESSEE AG-^t£5 TO LOOK SOLELY TO TriL y.y;Li.=.ACToREri OF THE LE.AS=D .-SOCUCTS •^'ITK RESPECT TO ANY CLAIM 0 ^ UAElLlT' 6ASED CN .y^;Y E:-.?^SESS CR !?.'.=L!ED •A'ASF.iJ-gTV OR ANV REFi^EftNT.ATION 13, Lasiea agrsss ic execute Imancing sisienenls evidarcing Lessor's \ibSi^\(ii Ci>'E-sh;p r'.G'ehl n Eq. if^irenl ivl-.rch !.".e Lessof wi: l:'e v.^ilr ihe ai.-pio;<^3;e 3J..1C!'J53. :4. - e i f j e agrjjs t s i ine Eq^ip'rrenl cshiera-;! lo •,^;alioT s;-;c!£C a'sova v.nlch :i l.sssse s irujiieis aoJrass. shall :icl te -^^.-.z.c-i ir.c-'ei.c-T. -..-rlioi-l 11^3 Liises's p'icr v;ri::en ccnsanL LtSsea rj'i:"iar 59 ees lo gi/e Lessor In^.n'cciala ncUce or any la.y 2Ua!i-p:ed ..pen c; !;5t:!iry Ij ;;izure ol said Ecji::!:e.il. end 10 i.^JariMiify Lessor againsi ail 'oss and 'Ja.Tagas caL.'S:d by a.Ty SLJCT aciion. Lesser S.'icH :-re p.f.i'ege at all (..TOS cl ei;:-;."!^ any buMinQ ci kxslion ^.-.nare 5.^^ Eiiuipnara is bairxj used lo; ma p'jrposs or iiispici.i-on ar-J leserves iiis fiii-ileaa 0! rsrncving s.iid Eqj p(i:e.H 'onliv.i;ii if. in lessor's cpl.nio.i. il is jsiiig ovifloadsd or i5xeG b;yoTvJ ils capscily O' in any mannct Se nc abusei cr neglsctsd. L V T H E V ^ . - ^ L r - C U R E R IN CG'JNECTiON T H E H E W S T H . . E S S C R ^r-•;E^; fiO vvAsr^iNTv EXPRESS OR :MFL'EO. ^c^i A^JY RE"PEEENTA- ncN •;o':0E-.;!iN3 '^^E .EASED PF.C^.-CTS- ^NV •ivA.^nA\r'' ccr.cEnN.NG ^ p;n;T jL.LAr PJ=-CSE CR VE?C•^^,!•;•:-EILIT' ^:^E . .,iv^rA.:TJ.".Er:. ,\.C'i ;;:-tL;. .ESSCE. EE Lr.-SLE FOP. ANY CAI-.-A:,-.ES y^L'FEr:C ^^r' IN CC-ii.EC^'ON "r-Ei^EVvi""r-i 0 ^ .^.S A i^E^LLI CF . ^ i - E S S r C E ; E ; 5 I O N c r i ;,SE CE THE -=O0JCTS ^V^ETnEH ^A-z/^uEv M/;y (;n:v~ECi.!E'lT|iL. rNC:!jENT;-L. SPECIAL C^^ECT. .:^C:!=ECr Q R OTHEN/VISE. 5. Lesssn it iTsr.ijfi^iW^ (or ill :.^3:r;[eiiG;ics arid .~='nair s^.p^i'^es £q;;ip' iii5n: and is li-q. i.'c.i ic iiaintsl.T ssid Ec.iric;r.eril in ±€ Sr.:^= caidiilon as •.•.her> j::>p£d io u by Ltiso'. '.o pay Icr i l -ii^i.^gts ic ;r-= Eci-icirneo;. s^d lo reiui.T i.nr.3 ::1 as g.^o^ CC.IJ L J I I 53 .••fiSr; il": Jp5C- -.0 :1 P'/ LeS50r. B li e ;iCi2C9 !i!e ct l--;scn .-f-xA arvi C!c\pzry :.=?.! Br«i :=j( c-ic&^ted, and iC pay 2ii iriijjiil. •:F: :.ri3;i;r, ij;c':3j;. rayft^S. c^:i^e, 0' oisis: cnarc;s " i : ;sl said E^iLi.iTCi-t 15. Should i.5S:ee fail to r-ijiiG a:'.y c3yn'.e.:| v.'.-.sT d:is Of •'ai! to majiiain aiid o:er3'.e i.-,s Equp^ie;!' gcjd. ?.nc ser.i.sable co;K!i:';n and !i! o' ;.se as ovicod lice::''- 0; vio'iie ni'.y ^-.'O-ision h.a.'aef. cr 'sil to ^T^ai.itain :3Tj;;;d i;;L"aiC€ cneraga. cr L>3C0ir.£ -ilv.pi or a recsivs' or assig: .•>p:\-:v.-d LESEsea bLixess. ci sncld L m o a caJaui! ^n ^ry ;?.M'.6.'i 0: prx.c.pal c >is est on. or any oiri=r taj.vo-t 01 'Oi'ey ?.".y c.'ier cbSgalo or e;e.vai;'e p,=..-al:;3 io :!;e Lessc: c any rl .is aye.MS cr i-;..iHl:d XTpanies. Tier; Lesser ir.av m/nec.ildy ;;r;-i".3'.e '.-.IB laase, .a!-:? rcsssssiin cl ii-.^ sBic tG'j:pr.£ni Kiihoi;: v^CM'iirx; table i c Iresjass. ei'over all lease ^ayniints due, d.^nayes Icr any in.-ry !o Ihs E&j:p:ne('i. ncnial wear a.'d ;eai excep'eir, all =).psnses ol retyriilre riie same, rrx:lL'd:r.,j reascr'-atle aricrney's tees, plus any del'ciencias '.•.Hwch may 'ama/n an ar.y of 'Jid a-cre^nejilrorigd oM-galions. 13. In case Eny ruatier is wrillen or l\ped inio ihis prnled .A(;re=ri-.sr.l. Lil^,ef ihan SLch as is r-acessary !0 i ll ;''.e olar-i;; proviasa. suc^. r'la'^ier ^e dssniec an atiziion to ihe Ap'is siid il Is spec: lie aiiy •ji;.-ar5;o:xl ai>d aoroers 1I-.31 Sucii aiicad i':'allef is no: : •:endsd to al:ar 'ha msenv-g or -nlfniic.o 0! roe sriniar; rlai.iss iiie ccri.aci/ 2nd h case o" c-j;'l|.cl e-.J i^^cs'isisrcnTy tfiwasn rl e p'.nico poi-.ion -1 • -VM :;•) 01 vtTd a;i"i'c s. ;iia ^;.:Med po-iici ;!:a!! coTfol. a a any i^r:\:n •:r r-jCi'ii :::-.i5~ n ccVlict • ••.••.^'.'i Si'all ba vo;ci. i~. c":!" uesi;' i!:a i m t - ^ .v^ras r.a. i c -!--:!jr taion ol r^is .A:.i;e;nfir t-iajl L^e r; jpcn •.'f.fiTi ;r ;i!her c.' in;-n'. -..r'Hi i j c l ! .T.;::ir.ca'j;ri5 sr.all 1;^ ^n iv.'iL.ng 5 Air.vsi c> EJCf^ E:,j |;n:nt ar p.rr cl jiC^^iaU;;:! arc ii.ijiS cl LC;!K= osyjci ar.j ciii'j si.cof-;ea in -v iirg. '.j i^.e cxi^ilion if.ereol •.•.•i^h;ii -iS ."iOmS ot ifrjv.-J ..r i c;'.=;:i'jis oCi.n;.'.i3;^;rr.en'. lhat i.-.ie tqu-pr;!;!!! ; JS •:.?;n i;ccs[;;=c and rc-u^j in gccd. SAIS and jervicsalilE 13. Lessor or ils acjen:: iiiav ii'sp^ac: s^ij Equipment at any reasonaoi? lirris a.id, li in i;s opr^n or the cpLiion ol ils j.gani. tiie oiovisicis oi ihis Agreeu'en! a^e noi ;j!3ii;crt Wi ioi uli. be;nc ccri^phed wiih or ihe Equ-preni i; in (langsr r^acajse ol any comJiiion. Lpsscr rTuv iakc Fossessic.n 0: a-id ramovs ircm the po££e5sion cf Lessee .Yit-'.oul lecia! 7. In :re i\trt o; nc-iice lo Lessof Hy LEssaa iha; i:-.; E::rn.v2ri is ncl m gcoa. p.'Gcess. ai Ills evpanEG ol Lessee. Ihe Equ-pmeii-. lip.-sip. nenlioned. Lessee s,il; and J6!v.c:dcls c^.':ai: c;i i-nd !ii lo' . pen ]'.s arriv^il. Lesso; si-iall :iava ine p'oviclmg Lesso: 'ior hat pj'pcse i;nobs'.'uwac incrsss E':d eciess. • •j]. lo pL:r sa d E7,:.!i.'jg'!! in gcoc. sa'a a"d ES;vlc£5E!a ccdliir.n anc fi (or usa. .viinin a r^^s-^ngb a l'r-,3. or ;v r^icil 1!;= 19. Tiia on-iss-on L'y Lesso; a; any lire to enrcice any cala-jll or right ressnvec :o i;. Cl io -ecLiic p=ii\;:'na':e oi a-.v •:' iiia :erri5. f.jveranis cr ^lov.sicns hereol by 8, Leaser - l^C! L i :^i:::a O Le;5£e ror y 035- Oi'ly :.=n-i^a ol a-y fcnj Lcssas ai liie :!^ie desig.-arc'-d s*;.)!' ro: bs a -..siver .oi a'y sar-i c';'2.:li o' iif;hi to •.vl-LessO:' s air ll^d. ner E".,=I; it ifi any way afiacl li-e rlg-.i of .essor !o Eiiro ce sjc.'-- orovs.on5 •.•^e.ejiier. "ha •e.'nao.as ol Lssso: are cjT.'j-a:r>'e. no; :!ie;ri,^iiva. .1 •£) ih.s e.ilfy 0; ludci'sni ov co:''la;£'0:i or iTl-sn-ioS end ihe issoanje of t»eci;'.ivn 5. Ali r.oi 0? Ic-s; c: .-.-i^r-^/^^ lo E j-..ro:rian:. i::-Jev.!s| cr :;".s.v.s&. sliall ce rpr ijr'.pa:c tease psynaiUS or o'tisi sisrr.s lo pare ha:5'j."der by Lesse-j 01 at;y r iTO il/ 1.03;=S. T:.= [OSS, i'^j-jr-j' ;r dei^iUCliOr. cl '.'-3 E: J j-'ir^;::! ir.sil '.3i rilaass pan :^.?:BC!. siisll in no r^ymsr alleci any of i.essci's cL-'Sf i.grls !'crtL:iw£:. Lessor ::' ii^:iii L^iiea s abiirjalicns 'le^e-jridei. may e^ercise ell le.Tii-Jfa si.iiLltanecLSly, mrsiiani 10 Lhe larris .i-ireol. and any suc-^ acion shail n:-t cp^rai-? 10 release L&Jjea. a.n'jl -sis ivll ari'iunl ci ihe lease lO. r.£H;ef. ^-^ees lo :o"ply v.irh all riv.r^cipal, E^aia a x :sa=rE;j Li.v; r=if,;;,-\i a psyr-e'Ts due sffd all cltisr Sutiia 10 he I'aid h^;su,Td:t have taEi: oiio. ii= Jr^E.'iiion of sara E:;.: p.T-E-''l Siid io oF.y £-1 tsies. CG5l;. s^-i enpo^ses ol eve"/ F::-:e-.3r v;r.:-,5:or=a rr-voMr.rj iMa NSS O; :£?ra:!an -.i-.i e?,;-p!T tri ra '_ss5s;. :o piy 51! :s,jSl asiessn-.er:;. ci M'c cn^xas •.-ric". Tay oe v;:^ Eq,:::!:s;ii l^^li!e in .-.K {•-•:;s5?sion c' ::ie M.?:a 3p;;^:cs !,', Peisc f l Prr.;jriy Tax is I'.c:;:r-.p-,.:en ;•. lAr.ii.z ' : n l f . :;5ii ;y ihs -i-aSEea, ^r.lco VVrsi; ihf iiiU l3fni 01 ire Agrserciil rias z-B^r. con^ple^ad, Lesser i.-^ll. if so :aqjgsi&o by :.S:S£e ••'.iliim I'llny (oOj days a:iE- =j:n cOTinlaiio;'. i^ar' er anc assign Lossae. ;or rha Si.n' 0' .SlOO cr 1?= v iha vaiLS or squipiran:' [line 2Ei .^ii.s S1.31}. •-.•iirhe.sr :S !e£S, a l C L;aso;'= siCi.M^- '!a;s=| and -.gii! a.i'j li'.-a :o • i ' ; Equ crria ii. .'. Ine Lsssea v. i'^es ro , L.-ctia^e ir.e Ecr ipn-^nt pror :o co.-n,-:'2; in 0- ;h= j'l isriii 0! ;he .jc Tenani Lessor naKe SL.ch ;raiisr=r anc assigi'ineni DV ;cn pj-ri; a caycil 00 i'-e ismair'i.-g balance i.'^assi; on Ihe rJa oJ 75 5. APPENDIX D EXHIBIT O MATCO TOOLS ^LATCO DISTRIBUTOR BUSINESS SYSTEM SOFTWARE LICENSE, MAINTENANCE AND SUPPORT AGREEMENT Mateo Tools ("Mateo") agrees to provide to: Distributor Name Distributor # Address Cit>% State. Zip and the Distributor agrees for good and sufficient consideration to license from Mateo, one (I) copy of the applications software system knowTi as the Mateo Distributor Business System ("MDBS Software") consisting of computer programs and associated documentation, subject to the terms and conditions set forth in this Agreement. Mateo and the Distributor are parties to a Distributorship Agreement dated as of . 20 (the "Distributorship Agreement'01. LICENSE OF SYSTEM: PERMITTED USE A N D COPYING. The Mateo Distributor Business System is the proprictar>' property of Mateo Tools. Mateo grants a nonexclusive license to the Distributor to use the MDBS Software in connection with the operation of the Distributor's Mateo Tools business. Mateo will ship the MDBS Software object (Machine language) programs (source programs not included) and documentation to the Distributor upon order ofthe MDBS Software by the Distributor. The Distributor may not sublicense, assign, sell, transfer or dispose ofany part ofthe MDBS Sofiware to any person or entity. The Distnbutor warrants that the MDBS Soft\vare will be used only in connection with the operation ofthe Distributor's Mateo Tools business, and will not be used for any other purposes. The Distributor may make no more than three (3) copies ofthe MDBS Software, one for purposes of use on the computer at his home or priman^ place of business, one for use in his truck, and one for backup purposes. 2. CHARGES AND PAYMENT TERMS. The current license fee for the MDBS Software and the first month's Systems Maintenance and Support provided by Mateo is $799.00. Such fee is subject to change by Mateo from time to time. The license fee for the MDBS Software will be charged to the Distributor's Mateo Tools purchase account upon shipment. The terms for payment of the license fee are the same as the existing terms for payment of other amounts payable pursuant to the Distributor's Mateo Tools purehase account. Beainninu in-ihe-sccond-qtfafler of 2(i()9.-tlieroThcrc will be a one-time SlOO license fee for Credit Card Processing Sofiware that interfaces with the MDBS Software. Tlie license fee for the Credit Card Processing Software will be charged to the Distributor's Mateo Tools purehase account upon shipment. The terms for payment ofthe license fee arc the same as the existing terms for payment of other amounts payable pursuant to the Distributors Mateo Tools purchase account. Additional Systems Maintenance and Support is available to the Distributor after the first month ofthe term of this Agreement under the tenns and conditions set forth in this Agreement upon payment of Mateo's then-current charges. Tlie standard annual charge for Systems Maintenance and Support in effect as of the date of this Agreenient is $^49-UH).()0. but such charge is subject to change by Malco from time to time and Matco/Sortwarc License .Agreement.'PK 5462.-1^ i may, at Mateo's option, be substantially higher for systems not conforming to Mateo's required specifications, including manufacturer, model, configuration and operating requirements. Annual Systems Maintenance and Support charges will be added to the Distributor's Mateo Tools purchase account. The tcmis for payment of the annual Systems Maintenance and Support charges will be the same as for the then—current terms for the Distributor's Mateo Tools purchase account. The Distributor's annual charge for Systems Maintenance and Support will continue to include, in addition to the ^?4^standard annual charge7~^„of_$400,_an„additional annual charge of S400.00r if the Distributor's system hardware and/or software does not comply^ to Mateo's satisfaction, with Mateo's PC specifications, including manufacturer, model, configuration, operating system, virus protection and nonMatco-speeified use of third-part>' software and Intemet sites. 3. T E R M A N D RENEWAL. Subject to payment of the license fee set forth in Paragraph 2 and compliance by the Distributor with the other temis of this Agreement, this .Agreement will remain in effect for a period of one (1) year from the date that the MDBS Software is shipped by Mateo to the Distributor unless tenninated by either part\' in accordance with the terms of this Agreement. Subject to payment by the Distributor of the aiinual Systems Maintenance and Support charges and compliance by the Distributor with the other terms of this Agreement, this Agreement will automatically renew and continue to renew for successive one (1) year periods unless terminated by either party in accordance with the terms of this Agreement. 4. SYSTEM HARDWARE. The Distributor is required to purchase a new (not previously owned or refurbished) laptop computer with a full 3-year wanant\' described below meeting the exact current MDBS specifications without exception. As of Januaiy 1, 2009, the MDBS Sofiware is designed to run on a Dell Latitude, model E6500 computer (a "laptop") with a minimum of 2.4GHZ processor, Windows Vista Operating System, Trend Micro PCcillin Anti-Vims Software, a 3-year extended on-site laptop maintenance, a mininium of 4 gigabyte of R A M memor>% a 160 G B hard drive, a CD-RW/DVD-ROM drive, at least a 56K baud modem, a network port, 802.11b wireless, a deskjet printer, a Mateo specified 40 column receipt printer, a Mateo specified barcode reading and label printing equipment, and a Mateo specified credit card swipe device. The Distributor will be responsible for acquiring and maintaining access to the Intemet through an Intemet Ser\ice Provider in order to communicate with Mateo. Cable or DSL connections are preferred. In addition, the Distributor is required to purchase a cellular communications card and ser\'ice in order to connect to the intemet while on their route. The MDBS Software documentation contains a list ofthe minimum equipment and additional recommended equipment. Except as expressly set forth in this Agreenient or the MDBS Sofiware documentation, Mateo does not guarantee or warrant the successful execution ofthe MDBS Software on ever\- particular brand and/or model of computer. It is the Distributor's responsibilit\^ to handle all equipment hardware/wairanty issues directly with the equipment manufacturer. Mateo is not responsible for hardware reliability or service. The above standards are established solely for the purpose of optimum MDBS software perfonnance. System Hardware requirements are subject to change. Refer to the then--current MDBS Equipment Order Fonn for the most recent requirements. The Distributor will be responsible for acquiring and maintaining the computer hardware and manufacturer's operating system software required to execute the MDBS Software. Except for the MDBS Software, the Distributor will have sole and complete responsibilit>" for: (a) acquiring, operating, maintaining and upgrading its own computer hardware and software; (b) the manner in which the Distributor's systems interface with Mateo's systems and those of other third parties: and (c) any and all consequences that may arise if the Distributor's systems are not properly operated, maintained, and upgraded. The Distributor is responsible for acquiring and maintaining an Intemet email account and must promptly notify Mateo's Custoiner Service Department of any changes. This account must be established prior lo attending the newdistributor training class and must be clearly noted on the attached MDBS Infonnation Fonn. Malco'Sottware License .Agreement/PK 5462.-U 2 -The Distributor is further responsible for entering the shop, customer, tax rates and other data needed to run the MDBS Software. 5. CONDITIONS TO ELIGIBILITY FOR M.AINTENANCE AND SUPPORT SERVICES. In order to be eligible to receive Systems Maintenance and Support services from Mateo, the Distributor's copy ofthe MDBS Software must be umnodified by the Distributor and maintained to the latest update level specified by Mateo, and the Distributor must not be in breach of his duties and responsibilities under this Agreement. 6. MATCO'S MAINTENANCE AND SUPPORT RESPONSIBILITIES. Maleo will make on-call support available to the Distributor on office working days dming the standard hours of 8:00 a.m. through 4:30 p.m. al Stow, Ohio. Distributor calls for support will be forwarded to the Mateo support staff An individual from the Malco support staff will provide a response to the Distributor within a reasonable period of time. All notices of errors or malfunctions must be clearly stated by telephone or in writing by the Distributor and must provide details sufficient to diagnose or reproduce such errors. If the Distnbutor notifies Malco of a suspected error, Malco will use all reasonable efforts to confirm the existence of and correct sueh reproducible error by exercising standard test progranis and taking necessarv' corrective actions. If, in analyzing a suspected error in the MDBS Softvvare al the Distributor's request, Malco detemiines that no error exists in the MDBS Sofuvare program logic and/or documentation, and/or if the program malfunction is due to the Distributor's alteration ofthe MDBS Software, and/or if the Distributor is using computer hardware other than specified or approved by Mateo or if the laptop computer is infected with viruses, worms and/or spyware of any nature, Malco will proceed with further efforts to diagnose and correct the malfunction only ifthe Distributor agrees to pay Mateo for its time and efforts at Mateo's then—current rates. As-of-Febnjaiv L 2()<i9. theThc current rate is $50/hour. Maleo will from time to time review the MDBS Software for improved functionality and operaling efficiency. Mateo will, based on its own judgment, make such improvements and enliancenients to the MDBS Software from time lo time as il deems appropriate. Mateo will provide to the Distributor, on a timely basis, the updated software and documentation necessary' to enable the Distributor to reflect such enhancements and improvements in the Distributor's system. Mateo will also provide to the Distributor, as updates under the temis of this Agreement, any program logic and documentation changes made by Malco lo correct any proven reproducible errors in Ihe MDBS Software whieh eause the MDBS Software to deviate materially from the specifications for that system. Any changes to MDBS Sofiware program logic made by Mateo under the terms of this Agreement will be provided lo the Distributor on media specified by Mateo. The Distributor will pay the cost of the media, including shipping charges. The charges for media and shipping will be added lo the Distributor's Mateo Tools purehase account upon shipment. To ensure perfonnance and software compatibility, the use ofthe MDBS computer and sofiware shall be restricted to the Distributor's Mateo business related functions. For example, the MDBS computer shall not be used lo browse the Internet for personal use, it should not be used for gaming, and olher third-party software should not be loaded and executed on the computer. 7. LIMITED WARRANTY. Malco hereby warrants the MDBS Software for a period of ninety (90) days from the lime of shipment to materially conform lo the specificalions described in the documentation in the shipment. Within the warranty period, if the Distributor finds that the MDBS Software does not materially conforai lo the Mat CO Soil ware License .Agrccnicnl/PK 5462.14 3 specifications, the Distributor will promptly provide Malco with sufficient documentation of such nonconform!t>' such that Mateo can reproduce and verify the same. Mateo will, within a reasonable time, upon ils confirmation of the nonconformit\', provide the Distributor with either instructions for correcting the nonconform it>' or an updated copy ofthe MDBS Software that is free ofthe noneonfomiitv'. In the event that Mateo is unable to accomplish any ofthe above, it will accept a retum ofthe nonconforming MDBS Software and fully refund to the Distributor the license fee paid. The foregoing will constitute Mateo s sole obligation, and the Distributor's sole remedy, for breach of warrantv'. Mateo's warrantv' is conditioned upon the installation by the distributor of any and all updates to the MDBS Software provided lo the Distributor by Malco and the Distributor's compliance with the terms of this Agreement. EXCEPT FOR THE EXPRESS LIMITED W A R R A N T Y SET FORTH A B O V E . MATCO HEREBY DISCLAIMS A N D DISTRIBUTOR HEREBY EXPRESSLY WAIVES, A N Y A N D A L L OTHER EXPRESS WARR.\NT1ES A N D REPRESENTATIONS OF A N Y KIND OR NATURE. UPON T H E EXPIR.\TION OF THE EXPRESS LIMITED WARRANTY PERIOD SET FORTH A B O V E , MATCO DISCLAIMS, A N D DISTRIBUTOR HEREBY EXPRESSLY WAIVES. A N Y A N D A L L IMPLIED WARRANTIES. INCLUDING, BUT NOT LIMITED TO, A N Y IMPLIED W A R R A N T Y OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT WILL MATCO BE LIABLE TO DISTRIBUTOR FOR A N Y SPECIAL, INDIRECT. INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING LOST PROFITS OR LOST SAVINGS. IN A N Y W A Y ARISING OUT OF OR RELATING TO THIS AGREEMENT. WTIETHER IN C0NTR.4CT OR IN TORT. IN ADDITION, i\L4TC0'S LIABILITY TO DISTRIBUTOR FOR DIRECT D A M A G E ARISING OUT OF OR RELATING TO THIS AGREEMENT WILL IN NO EVENT EXCEED THE TOTAL AMOUNT OF LICENSE FEES AND A N N U A L SYSTEMS MAINTENANCE A N D SUPPORT CHARGES A C T U A L L Y PAID B Y DISTRIBUTOR TO MATCO UNDER THIS AGREEMENT. 8. CONFIDENTIALITY. The Distributor will not disclose the MDBS Software lo any person other that the Distributor's employees who have need to use the MDBS Software in conneciion with the operaiion of the Distributor's Mateo Tools business. The Distributor will not alter or remove any ownership, trademark or copyright noiices from the MDBS Software or any associated documentation. 9. DEFAULT: TERMINATION. Either party will have the right lo lemiinate this Agreement upon thirty days' (30) prior writien notice. This Agreement will also tenninate immediately upon the temunation or expiration of the Distributorship Agreenient. In addition, this Agreement and the license granted hereunder may be tenninated by Mateo on ten (10) days' vvritten notice if Distributor defaults in the payment or perfomiance of his obligations under this Agreement. In the event of termination ofthe Agreement, the Distributor will immediately cease using the MDBS Software, aiid will immediately retum to Malco all copies of the MDBS Software and documentation in ihe Distributor's possession or under the Distributor's control. No refund of any fees paid by the Distributor pursuani to this Agreenient will be owed by Mateo to the Dislribulor in the event of the temiination of this Agreenient. 10. MISCELLANEOUS. This Agreement vvill be govemed by, and consirued and enforced in accordance with the laws of Ohio. If aiw provision will be held invalid or unenforceable, such provision will be severable from the Agreenient tHid will not be constmed to have any effect on the remaining provisions. Malco'Software License .Agreement/PK 5462.-}5 4 03i^.iiA'^29:\(> 11. ENTIRE AGREEMENT. This Agreement sets forth the entire understanding of the parties and supersedes any and all prior agreements, arrangements and understandings relating to the subject matter hereof and the terms and conditions set forth herein will prevail notwithstanding any variance from the temis of any written order submitted by the Distributor. No representation or inducement has been made by any partv- which is not embodied in this Agreenient, and no partv' will be bound by or liable for any alleged representation or inducement not embodied herein. This Agreenient will become effective only upon execution by the Distributor and approval by Mateo and may be modified or amended only by a vvriting executed by both parties hereto. FOR STOW, OH OFFICE USE ONLY DISTRIBUTOR MATCO TOOLS Date Signed Date Signed bv by Signature Signature Title Name - Printed Matco Software License Agreenienl/PK 5A62.-\5.. ? MDBS INFORMATION FORM ( ) Email Address (It is very^ important to print legibly) ( ) Cell Phone Number ( ) Cell Phone Provider (for text messaging) ( ) Intemet Provider (ISP) (provider and mode - Cable, DSL, Dial-up) ( ) Check here to confirm that you have purchased the Mateo Computer Package RETURN THIS FORM WITH THE MDBS LICENSE AGREEMENT. Matco/Software License Agreemeni/ PK 5462.-?^ 6 03!^(i4i^29/UJ APPENDIX D EXHIBIT P GUARANTEE. INDEMNIFICATION. AND ACKNOWLEDGMENT NMTC, Inc. d/b/a Mateo Tools ("Mateo") and ^havc executed a Distributorship Agreement dated (the "Distributorship Agreement"). As an inducement to Mateo to execute an .Assignment, Assumption and Consent Agreement dated 1 (the "Assignment Agreement") for the (i) sale and transfer of the assets of the distributorship by to , Inc., and (ii) assignment by to , Inc. of the Distributorship Agreement, the undersigned, jointly and severally, hereby unconditionally guarantee to Mateo and its successors and assigns that all of Distributor's obligations under the Distributorship Agreement will be punctually paid and performed. Upon demand by Mateo, the undersigned will immediately make each payment required of Distributor under the Distributorship Agreement, including damages, costs, and expenses owed by Distributor, payments due under any indemnification or claim for reimbursement, and all other duties and obligations that are susceptible to being satisfied by payment. This Guarantee is a guarantee of payment, and not of collection- The undersigned hereby waive any right to require Mateo to: (a) proceed against Distributor for any payment required under the Distributorship Agreement: (b) proceed against or exhaust any securitv- from Distributor; or (c) pursue or exhaust any remedy, including any legal or equitable relief, against Distributor. Without affecting the obligations of the undersigned under this Guarantee, Mateo may, without notice to the undersigned, extend, modify, or release any indebtedness or obligation of Distributor, or settle, adjust, or compromise any claims against Distributor. The undersigned waive notice of amendment of the Distributorship Agreement and notice of demand for payment by Distributor, and agree to be bound by any and all sueh amendments and changes to the Distributorship Agreement. The undersigned hereby agree to defend, indemnify, and hold Mateo hannless against any and all losses, damages, liabilities, costs, and expenses (including, but not limited to, reasonable attomeys' fees, reasonable costs of investigation, and court costs) resulting from, consisting of, or arising out of or in connection with any failure by Distributor to perform any obligation of Distributor under the Distributorship Agreement, any amendment thereto, or any other agreement executed by Distributor referred to therein. The undersigned hereby acknowledge and agree to be individually bound by all of the ternis of the Distributorship Agreement, including, in particular, those contained in Section 9 and Section 11.8 of the Agreement. This Guarantee shall teiminate upon the termination or expiration of the Distributorship Agreement, except that all obligations and liabilities of the undersigned which arose from events vvhich occurred on or before the effective date of such termination shall remain in ftill force and effect until satisfied or discharged by the undersigned, and all covenants vvhich by their terms continue in force after the expiration or tennination of the Distributorship Agreement shall remain in force according to their terms. Upon the death of an individual guarantor, the estate of such guarantor shall be bound by this Guarantee, but onlv for defaults and obligations hereunder existing at the time of death; and the obligations of the other guarantors will continue in fill! force and effect. Mateo fiiiaranlee/PK 5459.1 PagC 1 o f 2 The undersigned shall pay Mateo for all costs and expenses (including, but not limited to reasonable attomey fees and court costs) incurred in any action related to or arising out of this Guarantee. Enforcement of this Guarantee shall be govemed by the terms and conditions of Section 12 of the Distributorship Agreement. Unless specifically stated otherwise, the ternis used in this Guarantee shall have the same meaning as in the Distributorship Agreement, and this Guarantee shall be interpreted and constmed in accordance vvith Section 13.3 ofthe Distributorship Agreement. Any and all notices required or permitted under this Guarantee shall be in writing and shall be personally delivered, sent by registered mail, telecopier/facsimile, or sent by other means vvhich afford the sender evidence of deliverv' or rejected deliverv-, to the respective parties at the following addresses unless and until a different address has been designated by written notice to the other partyNotices to Mateo: NMTC. Inc. d/b/a Mateo Tools 4403 Allen Road Stow, Ohio 44224 Fax. No. (330) 929-4972 Attn: Thomas M. Hill, Treasurer Notices to Guarantors; Attn: Any notice by a method vvhich affords the sender evidence of deliver^' or rejected deliverv' shall be deemed to have been given at the date and time of receipt or rejected deliverv . IN WITNESS WHEREOF, each of the undersigned has signed this Guarantee, and it shall be effective as of the date of the Assignment Agreement. GUARANTORS Name:. Date: Name:. Date: Malco Guaranlee/PK 5459.1 Page 2 o f 2 APPENDIX D EXHIBIT Q MATCO WEB PAGE AGREEMENT This Agreement is made as of this IvnvlTC, Inc. d/b/a Mateo Tools ("Mateo") and (the "Distributor") day of , 200 , by and between BACKGROLTND: A. Mateo is the owner of a website with the address "MatcoTools.com" ("Mateo Website"). B. Distributor desires to obtain a subpage on Mateo's Website. NOW', THEREFORE, in consideration of the mutual premises set forth herein, the adequacy and sufficiency of which is acknowledged, Mateo and Distributor hereby agree as follows: I. Definitions. 1.1 Distributorship Agreement - The agreement between Mateo and Distributor which gives Distributor the right to operate a Mateo Tools mobile tool distributorship under Mateo's system. 1.2 Distributor Subpage - A web page that is linked to Mateo's Website, with a direct address ("Subpage Domain Name") which contains information specific to a particular Distributor. 1.3 Internet - A wide area network connecting thousands of computer networks in industr>', educafion, government, and research. 1.4 Internet Policy - Mateo's policy regarding all aspects of the Internet including but not limited to policies regarding the use of Web Pages and Distributor Subpages, as the same may be in effect from time to time, the current form of which is attached hereto (Attachment A). 1.5 Names and Marks - Mateo's names and marks as identified from time to time in the Distributorship Agreement and in Item 13 of Mateo's franchise offering circular or elsewhere. 1.6 Web Page Policy - Mateo's policy regarding the use of Web Pages and Distributor Subpages, as the same may be in effect from time to time, the current form of which is attached hereto (Attachment A). Malco Web Page Agreement PK 546L1 2 Term. The term of this Agreement shall commence on the date first entered above and shall continue until one of the following events occur: 3. (a) The Distributorship Agreement expires and is not renewed; (b) The Distributorship Agreement is terminated; (c) The Distributor Subpage is discontinued or terminated; (d) The Internet Policy is withdrawn or cancelled; or (e) This Agreement is terminated or cancelled by Mateo or Distributor. Development of Distributor Subpage. 3.1 Mateo agrees to create and develop a Distributor Subpage pursuant to the Internet Policy. Currently, the Distributor Subpage will contain two (2) pages: (a) the first page will be the Distributor "home" page with information regarding the Distributor, and with e-mail capability to communicate with Mateo and with third-party visitors to the Distributor Subpage; and (b) the second page will contain material of the Distributor's choosing, subject to compliance with Mateo's Internet Policy. Distributor shall provide to Mateo all such information requested by Mateo, in the form and at such times as specified by Mateo, as Mateo deems necessary or desirable to create and, if necessary, update the Distributor Subpage. 3.2 Distributor represents that it owns, or will own, or will have a license to own, all information, data, graphics, or other material that it provides to Mateo ("Content") to use in or include on the Distributor Subpage. Distributor hereby grants to Mateo a license to use all such Content. Mateo reserves the right to use all, some, or none of the Content provided by Distributor. 4. Ownership of Distributor Subpage. The parties agree that: 4.1 Mateo shall own, operate, and maintain all Matco-related websites and all Distributor Subpages. Upon the termination of the Distributorship Agreement or this Agreement, all related Distributor Subpages will be terminated immediately. 4.2 Mateo shall retain ownership of all domain names, including all Subpage Domain Names, during and after the term of the Distributorship Agreement. The Distributor will cease using its Subpage Domain Name immediately upon the termination of its Distributorship Agreement or this Agreement. Maico Web Page .Agreement-'I'K 5461.1 4.3 Mateo shall own all rights in and to any data and other information related to, or that is provided to, or obtained by or on the Distributor Subpage or the Mateo Website, including, without limitation, all clickstream data, customer or visitor data, computer "cookies," or logs of "hits" by visitors. 5. Fees. 5.1 Distributor shall pay, as of or prior to the date of this Agreement, a one time initial web page setup fee of One Hundred Ninety-Five Dollars ($195). 5.2 Distributor shall pay an annual maintenance fee initially upon signing this Agreement and thereafter the first day of the month of the anniversary of the date of this Agreement, and shall pay an annual maintenance fee on the same day each year thereafter. The current annual maintenance is One Hundred Ninety-Five Dollars ($195). Mateo may change the annual maintenance fee, on thirty (30) days prior written notice to Distributor, but such change shall not be effective until the anniversary date immediately following the notice of such change. Failure by Distributor to pay the annual maintenance fee, or any other fee due to Mateo when due, shall be eause for termination of this Agreement by Mateo. 6. Obligations and Acknowledgments of Distributor. 6.1 Distributor acknowledges and agrees that changes in Mateo's Internet Policy may be needed as a result of legal developments, changes in technology, and other reasons, and the Distributor agrees to be bound by Mateo's Intemet Policy as it may be revised by Mateo from time to time. 6.2 Distributor acknowledges and agrees that if Distributor engages in any conduct that is in violation of this Agreement, a breach of the Distributorship Agreement, contrary to the Intemet Policy, or is otherwise illegal or improper, Mateo may suspend or terminate Distributor's access to and use of the Distributor Subpage. Without limiting the foregoing, Distributor shall not engage in any unauthorized conduct, "spamming," "mailbombing," "spoofing," or fraud. 6.3 Distributor agrees to comply with Mateo's privacy statement on the Mateo Website, as it may be amended from time to time. The current privacy statement is posted at [www, matcotool s. coml 6.4 Distributor shall maintain such hardware, software, Internet connections, and other technological capabilities to maintain the Distributor Subpage, and to communicate through the e-mail function of the Distributor Subpage with Mateo and any third party, in accordance with standards prescribed by Mateo from time to time. 6.5 Distributor acknowledges and agrees that (a) the data, graphics, marks, and other information on the Mateo Website and the Distributor Subpage are copyrighted and are protected by U.S. and worldwide copyright laws and treaty provisions; (b) Mateo's Names and Marks are owned by Mateo and may be used only with the express prior written consent of Mateo; and (c) Malco Web Page .Agreemenl/PK 546M this Agreement does not grant Distributor any express or implied right under any copyrights, trademarks, or other proprietary rights. 6.6 Distributor agrees that any messages, ideas, suggestions, concepts, or other material submitted to Mateo ("Submission") via the Mateo Website or the Distributor Subpage will be considered non-confidential and non-proprietary. Mateo may copy, distribute, incorporate, modify, or otherwise use the Submissions for any type of commercial or noncommercial use. Further, Mateo is not responsible, and disclaims liability, for any Submissions or any information or data transmitted to or through Distributor's Subpage. 6.7 Distributor agrees to immediately execute, acknowledge, and deliver any instmments that may be necessaty to terminate its Distributor Subpage upon termination of its Distributorship Agreement with Mateo. 6.8 In the event that the Distributor fails to execute sueh instmments described in paragraph 6.7 above, in addifion to any other remedies of Mateo under the Distributorship Agreement, the Distributor hereby irrevocably grants a power of attorney to execute such agreements on its behalf to Mateo. 6.9 Distributor indemnifies and holds Mateo harmless from any claim or demand, including reasonable attomeys fees, made by any third party due to or arising out of Distributor's breach of this Agreement or the documents it incorporates by reference. Distributor's violation of any law or rights of a third party, or any accidental or negligent act or omission involving the use of or transmission of data or information over or through the Distributor Subpage. 6.10 The obligations of paragraphs 6.7, 6.8, and 6.9 above shall survive the termination of cancellation of this Agreement. 7. Operation of Website by Mateo. Mateo will use best efforts to operate the Mateo Website and the Distributor Subpage in accordance with this Agreement. Mateo makes no representations or warranties that the Mateo Website or the Distributor Subpage will be errorfree. Mateo disclaims ail liabilit>' for damages arising in connection with this Agreement, even if Mateo has been advised of the possibility of such damage. Mateo's liability to Distributor under this Agreement will not exceed the total of all fees payable by Distributor in any year under this Agreement. 8. Termination. This Agreement may be terminated by either party, upon thirty (30) days prior written notice to the other party. Notwithstanding the foregoing thirty (30) day notice provision, Mateo may suspend Distributor's use of or access to the Distributor Subpage as provided for in paragraph 6.2 above. Malco Web Pagc .Agreenienl/PK 5461.1 9. Entire Agreement. This Agreement, together with the Distributorship Agreement and related Intemet Policy, constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and all prior agreements with respect thereto are superseded hereby. No amendment or modification hereof shall be binding unless in writing and duly executed by both parties, or unless such change is made unilaterally by Mateo to the Internet Policy as permitted herein. 10. Governing Law. Regardless of the place of its physical execution or performance, the provisions of this Agreement shall in all respects be constmed according to, and the rights and liabilities of the parties hereto shall in all respects be govemed by, the laws of the state of Ohio. 11Severability. The provisions of this Agreement shall be severable, and if any provision of this Agreement is held to be invalid or unenforceable, it shall be constmed to have the broadest interpretation which would render it valid and enforceable. 12. Further Assurances. The parties agree to take any and all further actions as may be reasonable to give effect to the agreements contained herein. 13. Counterparts. This Agreement may be executed in one or more counterpart copies, each of which shall be deemed an original and all of which shall together be deemed to constitute one agreement. IN WTTNESS WHEREOF, the parties hereto have executed this Agreement as of the datefirstwritten above. Distributor NMTC. INC. d/b/a MATCO TOOLS Mateo By: Name: Title: Date; By: Name: Title:_ Date: Malco Wi;b Page .Agreement/PK 5461.1 ATTACHMENT A MATCO TOOLS INTERNET POLICIES DISTRIBUTOR WEB PAGE POLICIES Distributor Provided Content Goveming Policv Tool - Pricing New, current product List or current MATCO Promo prices New, discontinued product List less 15% (typical Promo). Contact Distributor directly if priced below 15% discount. Used, MATCO product Minimum is List less 40%o. Contact Distributor directly if priced below cost. Used, competitive product Any price as determined by Distributor. MotorSports - Pricing Collectibles, excluding toolboxes Current published List or Promo List. If Distributor wishes to sell over List - contact Distributor directly. Personal Information/Bio/Comments - No derogatory or other language that in any way disparages the competition. Shipping/Deliverj' Information - No shipping or delivery out of the Distributor's assigned territory or List of Calls. Credit Card vs. Cash Pricing - Discounts for cash are optional, additional charges for credit cards not allowable. (Per regulations in states.) Competitive Product Sales - No advertising for competitive product or non-tool related products or services (i.e., multi-level marketing plans Distributor may be involved in). Malco Web Page .Agreement' PK 5461.1 MATCO TOOLS FRANCHISE DISCLOSURE DOCUMENT APPENDIX E: DISTRIBUTOR DISCLOSURE QUESTIONNAIRE As you know, NMTC, INC. dfb/a iVLA.TCO TOOLS (the "Franchisor") and you are preparing to enter into a Distributorship Agreement for the operation o f a Mateo Tools Distributorship (the ''Distributorship"). The purpose of this Questionnaire is to detennine whether any statements or promises vvere made to you that the Franchisor has not authorized and that may be untrue, inaccurate or misleading. Please review each of the follovving questions carefully and provide honest responses to each question. 1. I first met vvith a Mateo Tools representative to discuss in detail the Distributorship opportunitv^ on , 20__. 2. Have you received and personally reviewed the Franchisor's Franchise Disclosure Document (the "Disclosure Document") provided to you? Yes 3. No Did you sign a receipt for the Disclosure Document indicating the date you received it? Yes 4. No Do you understand the information contained in the Disclosure Document? Yes 5. No Have you received and personalh reviewed the Distributorship Agreement and each exhibit attached to it? Yes 6. No Do you understand that the Distributorship Agreement contains a number of provisions that may affect your legal rights, including required arbitration, designated locations or states for arbitration and any judicial proceedings, a waiver of a jur\^ trial, a waiver of punitive or exemplary- damages, limitations on when claims may be filed, and other waivers and limitations? Yes No 7. Please insert the date on which you received a copy of the Distnbutorship Agreement with all material blanks fully completed: , . 8. Do you understand your financial and other obligations under the Distributorship Agreement? Yes 9. No Have you discussed the economic and business risks of owaiing and operating the Distributorship with an attomey, accountant or other professional advisor? Yes Maico FDD PK^4^^23_766.6 No E-1 (Xi~.i.LHiui -29 10 10. Do you understand the economic and business risks associated vvith operating the Distributorship? Yes 11. No Do you understand that the success or failure of the Distributorship will depend in large part upon your skills and abilities, the service you provide to your customers, competition, interest rates, the economy, inflation, labor and supply costs, lease terms and the marketplace? Yes 12. No Has any employee or other person speaking on behalf of the Franchisor made any statement or promise to you or anyone else regarding the amount of money you may eam in operating the Distributorship that is contrarv' to, or different from, the information contained in the Disclosure Document? Yes 13. No Has any employee or other person speaking on behalf of the Franchisor made any statement or promise to you or anyone else conceming the total revenues the Distributorship may generate that is contrarv- to, or different from, the infonnation contained in the Disclosure Document? Yes 14. No Has any employee or other person speaking on behalf of the Franchisor made any statement or promise to you or anyone else regarding the costs involved in operating the Distributorship that are contrarv^ to, or different from, the infonnation contained in the Disclosure Document. Yes 15. No Has any employee or other person speaking on behalf of the Franchisor made any statement or promise to you or anyone else concerning the actual, average or projected profits or earnings or the likelihood of success that you should or might expect to achieve from operating the Distributorship that is contrarv' to, or different from, the infomiation contained in the Disclosure Document? Yes 16. No Has any employee or other person speaking on behalf of the Franchisor made any statement or promise to you or anyone else, other than those matters addressed in your Distributorship Agreenient, conceming advertising, marketing, media support, market penetration, training, support service or assistance relating to the Distributorship that is contrarv' to, or different from, the information contained in the Disclosure Etoeunient? Yes Malco FDD'PK ^4^i4237(j(;.6 No E-2 yJ^^i*^oi2^i^l0 17. How did you first leam ofthe Mateo Tools Franchise (i.e., Intemet, newspaper, magazine, Distributor, etc.)? Ifyou answered "Yes" to any of questions 12 through 16, please provide a full explanation of your answer in the follovving blank lines. (Attach additional pages, if necessarv', and refer to them beiovv.) Ifyou have answered ""No" to each ofthe foregoing questions, please leave the following lines blank. 19. During my negotiations and evaluations leading up to my decision to buy a Mateo Distributorship, I communicated with the follovving individuals from Mateo Tools or its affiliates, or independent brokers: Name Address 2. 3. 4. [Insert additional names and addresses beiovv if needed] You understand that your answers are important to us and that vve will rely on them. By signing this Questionnaire, you are representing that you have responded tmthfully to the above questions. DISTRIBUTORSHIP APPLICANT/SPOUSE Malco FDD'PK ->}^9.H2M06.C> DISTRIBUTORSHIP APPLICANT E-3 iW0-i^:(f:i3;29n(> STATE AGENCY EXHIBIT APPENDIXFTP FRANCHISE DISCLOSURE DOCU.MENT Department of Coiporations 320 West I'ourth Streei, Suite 750 Los Angeles, Califomia 90013-2344 (213)576-7500 Toll free: (866) 275-2677 (yTii G. Mermen WilHams Building i2iW_Qttawa.Si: P.O. Box 30212 Mi<:hiiii!m Lansing, Lansing. MI 48909 (517)373-7117 Department of Agriculture and Consumer Sen,'ices Division of Consumer Services 407 South Calhoun Street Tallahassee, Florida 32399 (850)410-3753 Minnesota Department of Commerce 85 7"^ Place East, Suite 500 St. Paul, Minnesota 55101 (612)296-4026 Nebraska Department of Banking and Finance 4^t)tf-^jorty23iL!!Q: Street, Suite -31-14eQ P.O. 1-iox 05006 Lmcoln, Nebraska 68509-5006 (402)471-3445 Commissioner of Securities of the Slate of Hawaii Department of Commerce and Consumer Affairs Business Registration Division Securities Compliance Branch 335 Merchant Street, Room 203 Honolulu, Hawaii 96813 (808) 586-2722 Bureau of Investor Protection and Securities New York Stale Department of Law 120 Broadwav, 23rd Floor New York, New York 10271 (212)416-8211 Franchise Rtvj^»»Bureaii OlTice of the Attornev General 500 South Second Street Springfield, Illinois 62706 (217) 782-4465 North Dakota Securities Department 600 Boulevard Avenue, State Capitol Fifth Floor, Dept. 414 Bismarck, North Dakota 58505-0510 (701)328-4712 Franchise Section Indiana Securities Division Secretarv' of State, Room E-l 11 302 West Washington Street Indianapolis, Indiana 46204 (317)232-6681 Departmeni of Consumer and Business Services Division of Finance and Corporate Securities Labor and Industries Building Salem, Oregon 97310 (503) 378-4387 OlTice of the Attomey General Consumer Protection Division P.O. Box 2000 Frankfort, Kentiick-v^ 40602 (502) 696-5389 Department of Business Regulation Securities Division Bldg. 69, First Floor John O. Pastore Center 1511 Pontiac Avenue Cranston, Rhode Island 02920 (401)462-9527 Office ofthe Attomey General Public Protection Division One American Place 301 Main Street, Suite 1250 Baton Rouge, Louisiana 70825 (225) 342-7900 Department of Connncrcc and Regulation Division of Securities 445 E. Capitol Avenue Picire, South Dakota 57501-2017 (605)773-4013 Mar\'land Division of Securities Office ofthe Attorney General 200 St. Paul Place Baltimore, Marv land 21202-2020 (410) 576-6360 Statutor\' Document Section Secretarv of State P.O. Box 12887 Austin, Texas 78711 (512)475-1769 Michi.i;anDeixinmcnt_of Attomey Getural'-i OlUce General - Consumer Protection Division iit«?-ytiit Malco FDD'PK 4- ^2.^766.6 F-1 48933 State of Utah Division of Consimier Protection P.O. Box 45804 Salt Lake City, Utah 84145-0804 (803) 530-6601 Commissioner of Securities 345 West Washington Avenue Fifth Floor Madison, Wisconsin 53703 (608)261-9555 State Corporation Corrmiission Division of Securities and Retail Franchising 1300 East Main Street 9tlt Floor Richmond, Virginia 23219 (804) 371-905r Department of Financial Institutions Securities Division 150 Israel Road, S.W., 3'*' Floor Tumwater, Washington 98501 (360) 902-8760 Malco FDD'PK j 4 ^ : ^ 2 . W . . 6 F-2 AGENTS FOR SERVICE OF PROCESS APPENDIX G TO FRANCHISE DISCLOSURE DOCUMENT We intend to register this Disclosure Document as a "francliise" in some or all of the following states, in accordance with the applicable state law. If and when vve pursue franchise registration (or otherwise comply vvith the franchise investment laws) in these states, we will designate the follovving state offices or officials as our agents for service of process in those states: California Commissioner of Corporations Department of Coiporations 320 West Fourth Street, Suite 750 Los Angeles, Califomia 90013-2344 Minnesota Commissioner of Commerce 85 7*^ Place East, Suite 500 St. Paul. Minnesota 55101 Hawaii Commissionerof Securities of the State of Hawaii Department of Commerce and Consumer Affairs Business Registration Division Securities Compliance Branch 335 Merchant Street, Room 203 Honolulu, Hawaii 96813 (808) 586-2722 New York Secretarv' of State of Nevv York 41 Stale Street Albany, New York 12231 North Dakota North Dakota Securities Commissioner 600 Boulevard Avenue, State Capitol Fifth Floor Illinois Illinois Attomey General 500 South Second Street Springfield, lUinois 62706 Bismarck, North Dakota 58505-0510 Rhode Lsland Direcior of Department of Business Regulation Department of Business Regulation Securities Division Bldg. 69, First Floor John O. Pastore Center 1511 Pontiac Avenue Cranston, Rhode Island 02920 Indiana Secretarv' of State of Indiana 201 State House Indianapohs. Indiana 46204 Louisiana Louisiana .A.ttomey General One American Place 301 Main Street, Suite 1250 Baton Rouge. Louisiana 70825 South Dakota Direcior, Securities Division Stale Capitol Building 445 E. Capitol Avenue Pierre, South Dakota 57501 Maine Securities Administrator Maine Securities Division 121 State House Station Augusta, Maine 04333-0121 Virginia Clerk ofthe State Corporalion Commission Divisionot -Soeuriiics and Retail Fi.mchising 1300 East .Main Strccl^JsfBmi: Riclunond, Virginia 23219 (8041111^:2233 Marvland Mar> land Secimlies Commissioner 200 Sl. Paul Place Baltimore. Man land 21202-2020 Washington Director of Departniem of Financial Institutions Securities Division 150 Israel Rd, S.W , 3"" Floor Tumwater, Washington 98501 Michigan Dept. of Energv', Labor, & Economic Growtli Corporations Division P.O. Box 30054 Lansing, Michigan 48909 7150 Harris Drive Lansing, Michigan 48909 .\lalco F D D ' P K 51^>J.823766.6 Wisconsin Commissioner of Securities 345 West Washingion Avenue, Fifth Floor Madison. Wisconsin 53703 G-1 0.t-'.ii)/0'J3i29I10 STATE-SPECIFIC DISCLOSURES AND STATE AGREEMENT AMENDMENTS APPENDIX H TO FRANCHISE DISCLOSURE DOCUMENT 1. Hawaii 2. Illinois 3. Michigan 4. Minnesota 5. North Dakota 6. Rhode Island 7. Washington I .Miiico FDD/PK i4f5^*ri: 0,^3'Jr4ij23766.6 3/29iK) Hawaii Disclosure Addendum ADDITIONAL RISK FACTORS: THESE FRANCHISES WILL BE/HAVE BEEN FILED UNDER THE FR.ANCHISE INVESTMENT LAW OF THE STATE OF HAWAII. FILFNG DOES NOT CONSTITLITE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE COMMISSIONER OF SECURITIES OF THE STATE OF H.\WAII, DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS OR A FINDING BY THE COMMISSIONER OF SECURITIES OF THE STATE OF FIAWAII, DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING. THE FRANCHISE INVESTMENT LAW MAKES IT UNLAWFUL TO OFFER OR SELL A N Y FRANCHISE IN THIS STATE WITHOUT FIRST PROVIDING TO THE PROSPECTIVE FRANCHISEE, AT LEAST SEVEN DAYS PRIOR TO THE EXECUTION BY THE PROSPECTIVE FRANCHISEE OF ANY BINDING FRANCHISE OR OTHER AGREEMENT, OR AT LEAST SEVEN DAYS PRIOR TO THE PAYMENT OF A N Y CONSIDERATION BY THE FRANCHISEE, WHICHEVER OCCURS FIRST, A COPY OF THE FRANCHISE DISCLOSURE DOCUMENT. TOGETHER WITH A COPY OF A L L PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE. THIS FRANCHISE DISCLOSURE DOCUMENT CONTAINS A SUMM.ARY ONLY OF CERTAIN MATERIAL PROVISIONS OF THE FR.ANCHISE AGREEMENT. THE CONTRACT OR AGREEMENT SHOULD BE REFERRED TO FOR A STATEMENT OF A L L RIGHTS, CONDITIONS. RESTRICTIONS AND OBLIGATIONS OF BOTH THE FRANCHISOR AND THE FRANCHISEE. Registered agent in the state authorized to receive service of process: Commissioner of Securities of the State of Hawaii. Department of Commerce and Consumer Affairs, Business Registration Division, Securities Compliance, 335 Merchant Street, Room 2003, Honolulu, Hawaii 96813. Item 20 of the Disclosure Document is amended by the addition of the following: This proposed registration/exemption is or vvill shortly be on file in California, Florida, Hawaii, Illinois, Indiana, Kentucky, Maryland, Michigan, Nebraska, New York, North Dakota, Rhode Island, South Dakota, Texas, Utah, Virginia, Washington and Wisconsin. No states have reftised, by order or otherwise, to register Mateo's offer of these distributorships. No states have revoked or suspended Mateo's right to offer these distributorships. Mateo has not had the proposed registration of these distributorships involuntarily withdrawn in any state. HI-1 PK 5431.2 Hawaii Distributorship Aereement Amendment THIS AMENDMENT to the Distributorship Agreement is entered into this day of , by and betvveen NMTC, INC., d/b/a Mateo Tools ("Mateo") and (the "Distributor") to amend and revise certain provisions of the Distributorship Agreement between Mateo and the Distributor dated , , (the "Distributorship Agreement") as follows: , The Distributor's Mateo® Tools business is to be located in the State of Hawaii. Therefore, Mateo and the Distributor agree as follows: 1. The Distributorship Agreement is hereby amended and revised to provide that the release required pursuant to Article 2.2 or 10.2 of the Distributorship Agreement will not apply to any liabilitv^ under the Hawaii Franchise Investment Law. To the extent this Amendment will be deemed to be inconsistent with any terms or conditions of the Distributorship Agreement or the exhibits or attachments thereto, the terms of this Amendment will govem. All other terms and conditions of the Distributorship Agreement vvill remain the same. IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Amendment, understands and consents to be bound by all of its terms, and agrees it will be effective as of the date first above written. DISTRIBUTOR: NMTC, INC. d/b/a MATCO TOOLS By: Name: Title: Date: By: Name: Title: Date: DISTRIBUTOR'S SPOUSE: By: Name: Title: Date: HI-2 PK 5431.2 Illinois Disclosure Addendum Item 17. V and w of the Disclosure Document are amended by the addition of the following: If the Distributorship will be located in the State of Illinois, then Section 4 of the Illinois Franchise Disclosure Act of 1987 provides that the provisions of the Distributorship Agreement which designate jurisdiction or venue in a forum outside of Illinois are void. Further: 1. The "Summarv-" of Item I7(v), entitled Choice of Forum, is deleted and replaced with the follovving language: Arbitration must be in Summit Countv', Ohio. Subject to your arbitration obligation, no provision relates to choice of forum for litigation. 2. The "Summary" section of Item 17(vv), entitled Choice of Law, is deleted and replaced with the following language: Except to the extent govemed by the Federal arbitration Act, the United Slates Tr^emark of 1946, or other federal law, the Distributorship Agreement will be govemed by and construed in accordance with, the laws of the State of Illinois. IL-1 PK 5431.2 Illinois Distributorship Agreement Amendment THIS AMENDMENT to the Distributorship Agreement is entered into this day of , by and betvveen NMTC, INC., d/b/a Mateo Tools ("Mateo") and (the "Distributor") to amend and revise certain provisions of the Distributorship Agreement betvveen Mateo and the Distributor dated , , (the "Distributorship Agreement") as follows: , The Distributor's Mateo® Tools business is to be located in the State of Illinois. Therefore, Mateo and the Distributor agree as follows: 1. The consent by the Distributor to jurisdiction and venue in Summit Countv', Ohio contained in Section 12.9 is applicable to arbitration hearings and matters related to or subject to arbitration, but such consent vvill not apply to cases that are not subject to arbitration. 2. Section 13.3 of the Distributorship Agreement is hereby amended and revised to provide that except to the extent govemed by the Federal Arbitration Act (9 U.S.C. §§ I et seq.), or other federal law, the Distributorship Agreement vvill be governed by and construed in accordance vvith the laws of the State of Illinois, and the substantive law of Illinois will govem the rights and obligations of and the relationship betvveen the parties. To the extent this Amendment will be deemed to be inconsistent with any terms or conditions of the Distributorship Agreement or the exhibits or attachments thereto, the terms of this Amendment vvill govem. All other terms and conditions of the Distributorship Agreement will remain the same. IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Amendment, understands and consents to be bound by all of its terms, and agrees it will be effective as of the date first above vvritten. DISTRIBUTOR: NMTC, INC d/b/a MATCO TOOLS By: Name: Title: Date: By: Name: Title: Date: DISTRIBUTOR'S SPOUSE: By: Name: Title: Date: IL-2 PK 5431.2 Michigan Disclosure Addendum THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF T H E FOLLOWING PROVISIONS A R E IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS A R E VOID AND CANNOT BE ENFORCED AGAINST Y O U : (A) A PROHIBITION ON T H E RIGHT OF A FRANCHISEE TO JOIN A N ASSOCIATION OF FRANCHISEES. (B) A REQUIREMENT THAT A FRANCHISEE ASSENT TO A RELEASE, ASSIGNMENT, NOVATION, WAIVER, OR ESTOPPEL WHICH DEPRIVES A FRANCHISEE OF RIGHTS AND PROTECTIONS PROVIDED IN THIS A C T . THIS S H A L L NOT PRECLUDE A FRANCHISEE, AFTER ENTERING INTO A FRANCHISE A G R E E M E N T , FROM SETTLING ANY AND A L L CLAIMS. (C) A PROVISION THAT PERMITS A FRANCHISOR TO TERMINATE A FRANCHISE PRIOR TO T H E EXPIRATION OF ITS T E R M EXCEPT FOR GOOD CAUSE. GOOD CAUSE SHALL INCLUDE THE FAILURE OF T H E FRANCHISEE TO C O M P L Y WITH A N Y L A W F U L PROVISIONS OF T H E FRANCHISE A G R E E M E N T AND TO CURE SUCH FAILURE AFTER BEING GIVEN VVRITTEN NOTICE THEREOF AND A REASONABLE OPPORTUNITY, WHICH IN NO EVENT NEED BE MORE THAN 30 DAYS, TO CURE SUCH FAILURE. (D) A PROVISION THAT PERMITS A FRANCHISOR TO REFUSE TO RENEW A FRANCHISE WITHOUT FAIRLY COMPENSATING T H E FRANCHISEE BY REPURCHASE OR OTHER MEANS FOR THE FAIR M A R K E T V A L U E , A T THE TIME OF EXPIRATION, OF T H E FRANCHISEE'S INVENTORY, SUPPLIES, EQUIPMENT, FIXTURES, AND FURNISHINGS. PERSONALIZED MATERIALS WHICH HAVE NO V A L U E TO T H E FRANCHISOR AND INVENTORY, SUPPLIES, EQUIPMENT, FIXTURES, AND FURNISHINGS NOT REASONABLY REQUIRED IN T H E CONDUCT OF T H E FRANCHISED BUSINESS A R E NOT SUBJECT TO COMPENSATION. THIS SUBSECTION APPLIES ONLY IF: (i) T H E T E R M OF T H E FRANCHISE IS LESS THAN 5 YEARS; AND (ii) THE FRAiXCHISEE IS PROHIBITED BY T H E FRANCHISE OR OTHER AGREEMENT F R O M CONTINUING TO CONDUCT SUBSTANTIALLY THE SAME BUSINESS UNDER ANOTHER TRADEiVlARK, SERVICE M A R K , TRADE NAME, LOGOTYPE, ADVERTISING, OR OTHER C O M M E R C I A L SYMBOL IN THE S A M E AREA SUBSEQUENT TO T H E EXPIRATION OF T H E FRANCHISE OR THE FRANCHISEE DOES NOT RECEIVE A T LEAST 6 MONTHS A D V A N C E NOTICE OF FRANCHISOR'S INTENT NOT TO RENEW THE FRANCHISE. (E) A PROVISION THAT PERMITS THE FRANCHISOR TO REFUSE TO RENEW A FRANCHISE ON TERMS G E N E R A L L Y A V A I L A B L E TO OTHER FRANCHISEES OF T H E SAME CLASS OR TYPE UNDER SIMILAR CIRCUMSTANCES. THIS SECTION DOES NOT REQUIRE A RENEWAL PROVISION. Ml-1 PK 5431.2 (F) A PROVISION REQUIRING THAT ARBITRATION OR LITIGATION BE CONDUCTED OUTSIDE THIS STATE. THIS SHALL NOT PRECLUDE T H E FRANCHISEE F R O M ENTERING INTO A N AGREEMENT, AT THE TIME OF ARBITRATION, TO CONDUCT ARBITRATION AT A LOCATION OUTSIDE THIS STATE.* (G) A PROVISION WHICH PERMITS A FRANCHISOR TO REFUSE TO PERMIT A TRANSFER OF OWNERSHIP OF A FRANCHISE, EXCEPT FOR GOOD CAUSE. THIS SUBDIVISION DOES NOT PREVEiNT A FRANCHISOR F R O M EXERCISING A RIGHT OF FIRST REFUSAL TO PURCHASE THE FRANCHISE. GOOD CAUSE S H A L L INCLUDE, BUT IS NOT LIMITED TO: (i) THE FAILURE OF T H E PROPOSED FRANCHISEE TO M E E T THE FRA.NCHISOR'S THEN CURRENT REASONABLE QUALIFICATIONS OR STANDARDS. (ii) THE FACT THAT THE PROPOSED TRANSFEREE IS A COMPETITOR OF THE FRANCHISOR OR SUBFRANCHISOR. (iii) THE UNWILLINGNESS OF THE PROPOSED TRANSFEREE TO A G R E E IN WRITING TO C O M P L V WITH A L L L A W F U L OBLIGATIONS. (iv) THE FAILURE OF T H E FRANCHISEE OR PROPOSED TRANSFEREE TO PAY ANY SUMS OWING TO THE FRANCHISOR OR TO CURE ANY DEFAULT IN T H E FRANCHISE AGREEMENT EXISTING AT THE TIME OF THE PROPOSED TRANSFER. (H) A PROVISION THAT REQUIRES THE FRANCHISEE TO RESELL TO THE FRANCHISOR ITEMS THAT A R E NOT UNIQUELY IDENTIFIED WITH THE FRANCHISOR. THIS SUBDIVISION DOES NOT PROHIBIT A PROVISION THAT GRANTS TO A FRANCHISOR A RIGHT OF FIRST REFUSAL TO PURCHASE THE ASSETS OF A FRANCHISE ON THE SAME TERMS AND CONDITIONS AS A BONA FIDE THIRD PARTY WILLING AND A B L E TO PURCHASE THOSE ASSETS, NOR DOES THIS SUBDIVISION PROHIBIT A PROVISION THAT GRANTS THE FRANCHISOR T H E RIGHT TO ACQUIRE THE ASSETS OF A FRANCHISE FOR THE M A R K E T OR APPRAISED V A L U E OF SUCH ASSETS IF T H E FRANCHISEE HAS BREACHED THE L A W F U L PROVISIONS OF THE FRANCHISE AGREE.MENT AND HAS FAILED TO CURE THE BREACH IN THE MANNER PROVIDED IN SUBDIVISION (C). (I) A PROVISION WHICH PERMITS THE FRANCHISOR TO DIRECTLY OR INDIRECTLY CONVEY, ASSIGN, OR OTHERWISE TRANSFER ITS OBLIGATIONS TO FULFILL CONTRACTUAL OBLIGATIONS TO THE FRANCHISEE UNLESS PROVISION HAS BEEN MADE FOR PROVIDING THE REQUIRED CONTRACTUAL SERVICES. Ml-2 pK 5431.2 THE FACT THAT THERE IS A NOTICE OF THIS OFFERING ON FILE WITH T H E ATTORNEY GENERAL DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION, OR ENDORSEMENT BY THE ATTORNEY GENERAL. IF THE FRANCHISOR'S MOST RECENT FINANCIAL STATEMENTS A R E UNAUDITED AND SHOW A NET W O R T H OF LESS THAN $100,000.00, THE FRANCHISOR MUST, A T THE REQUEST OF T H E FRANCHISEE, A R R A N G E FOR THE ESCROW OF INITIAL INVESTMENT AND OTHER FUNDS PAID BY T H E FRANCHISEE UNTIL T H E OBLIGATIONS TO PROVIDE R E A L EST.ATE, IMPROVEMENTS, EQUIPMENT, INVENTORY, TRAINING, OR OTHER ITEMS INCLUDED IN THE FRANCHISE OFFERING A R E FULFILLED. AT T H E OPTION OF T H E FRANCHISOR, A SURETY BOND M A Y BE PROVIDED IN P L A C E OF ESCROW. THE NAME AND ADDRESS OF T H E FRANCHISOR'S AGENT IN THIS STATE AUTHORIZED TO RECEIVE SERVICE OF PROCESS IS: DEPT. OF ENERGY, LABOR, & ECONOMIC GROWTH, CORPORATIOiNS DIVISION, P.O. BOX 30054, LANSING, MICHIGAN 48909; 7150 HARRIS DRIVE, LANSING, MICHIGAN 48909. A N Y QUESTIONS REGARDING THIS NOTICE SHOULD BE DIRECTED TO: DEPARTMENT OF THE ATTORNEY GENERAL'S OFFICE CONSUMER PROTECTION DIVISION A T T N : FRANCHISE 670 G. MENNEN WILLIAMS BUILDING LANSING, MICHIGAN 48913 * NOTE: NOTWITHSTANDING PAR.4GR4PH (F) ABOVE, WE INTEND TO, AND Y O U A G R E E THAT WE AND Y O U W I L L , ENFORCE F U L L Y THE PROVISIONS OF THE ARBITRATION SECTION OF OUR AGREEMENTS. WE BELIEVE THAT PARAGRAPH (F) IS UNCONSTITUTIONAL AND CANNOT PRECLUDE US F R O M ENFORCING THE ARBITRATION PROVISIONS. MI-3 PK 5431.2 Minnesota Disclosure Addendum Item 17 of the Disclosure Document is amended by the addition of the follovving: With respect to Distributorships govemed by Minnesota law, Mateo will comply with Minnesota Statute SOC. 14, Subdivisions 3, 4 and 5 which require, except in certain specified circumstances, that a Distributor be given 90 days notice of termination (vvith 60 days to cure) and 180 days notice for non-renewal of the Distributorship. Minn. Stat. §80C.21 and Minn. Rule 2860.44001 prohibit us Irom requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring you to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Disclosure Document or agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter SOC, or your rights to a jurv' trial, any procedure, fomm, or remedies as may be provided for by the laws of the jurisdiction. MN-I PK 5431.2 Minnesota Distributorship Agreement Amendment THIS AMENDMENT to the Distributorship Agreement is entered into this day of , by and between NMTC, INC., d/b/a Mateo Tools ("Mateo") and (the "Distributor") to amend and revise certain provisions of the Distributorship Agreement betvveen Mateo and the Distributor dated , , (the "Distributorship Agreement") as foilows: , The Distributor's Mateo® Tools business is to be located in the State of Minnesota. Therefore, Mateo and the Distributor agree as follows: 1. Section 13.3 of the Distributorship Agreement is hereby amended and revised as follows: Minn. Stat. § SOC.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jurv- trial, or requiring you to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Disclosure Document or agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter SOC, or your rights to a jur\- trial, any procedure, fomm, or remedies as may be provided for by the laws of the jurisdiction. 2. The Distributorship Agreement is hereby amended and revised to provide that the release required pursuant to Secrion 2.2 or 10.2 of the Distributorship Agreement will not apply to any liabilitv' under the Minnesota Franchises Lavv and the Rules and Regulations promulgated thereunder by the Minnesota Commissioner of Commerce. 3. The Distnbutorship Agreement is hereby amended and revised as follows: With respect to Distributorships govemed by Minnesota lavv, Mateo vvill comply with Minnesota Statute 80C.14, Subdivisions 3, 4 and 5 which require, except in certain specified circumstances, that a Distributor be given 90 days notice of tennination (vvith 60 days to cure) and ISO days notice for nonrenewal ofthe Distributorship. To the extent this Amendment will be deemed to be inconsistent vvith any terms or conditions of the Distributorship Agreement or the exhibits or attachments thereto, the temis of this Amendment will govem. AH other terms and conditions ofthe Distributorship Agreement will remain the same. [SIGNATURE PAGE FOLLOWS] MN-2 PK 5431.2 IN WTTNESS WHEREOF, each of the undersigned hereby acknowledges having read this Amendment, understands and consents to be bound by all of its terms, and agrees it will be effective as of the date first above written. DISTRIBUTOR: NMTC, INC. d/b/a MATCO TOOLS By: Name: Title: Date: By: Name: Title: Date: DISTRIBUTOR'S SPOUSE: By: Name: Title: Date: MN-3 PK 5431.2 North Dakota Disclosure Addendum In recognition of the requirements of the North Dakota Franchise Investment Lavv, N.D. Cent. Code, §§ 51-19-01 through 51-19-17, and the pohcies of the office of the State of North Dakota Securities Commission, the Disclosure Document for NMTC, Inc. d/b/a Mateo Tools shall be amended by the addition ofthe follovving language: 1. The North Dakota Securities Commissioner has held the following to be unfair, unjust, or inequitable to North Dakota franchisees (Section 51-19-09, N.D.C.C.): A. Restrictive Covenants: Franchise Disclosure Documents which disclose the existence of covenants restricting competition contrarv- to Section 9-08-06, N.D.C.C., without further disclosing that such covenants will be subject to this statute. B. Situs of Arbitration Proceedings: Franchise agreements providing that the parties must agree to arbitrate disputes at a location that is remote from the site of the franchisee's business. C. Restriction on Fomm: Requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota. D. Liquidated Damages and Termination Penalties: Requiring North Dakota franchisees to consent to liquidated damages or termination penalties. E. Applicable Laws: Franchise agreements vvhich specify' that any claims arising under the North Dakota franchise law vvill be govemed by the laws of a state other than North Dakota. F. Waiver of Trial by Jurv : Requiring North Dakota franchisees to consent to the waiver of atrial byjur\-. G. Waiver of Exemplarv' and Punitive Damages: Requiring North Dakota franchisees to consent to a waiver of exemplarv' and punitive damages. H. General Release: Requiring North Dakota franchisees to execute a general release of claims as a condition of renewal or transfer of a franchise. 2. Each provision of this addendum to the Disclosure Document shall be effective only to the extent, vvith respect to such provision, that the jurisdictional requirements of the North Dakota Franchise Investment Law, N.D. Cent. Code, §§ 51-19-1 through 51-19-17, are met independently without reference to this addendum to the Disclosure Document. ND-! PK 5431.2 North Dakota Distributorship Agreement Amendment THIS AMENDMENT to the Distributorship Agreement is entered into this day of , , by and between NMTC, INC., d/b/a Mateo Tools ("Mateo")'and (the "Distributor") to amend and revise certain provisions of the Distributorship Agreement between Mateo and the Distributor dated (the "Distributorship Agreement") as follows: The Distributor's Mateo® Tools business is to be located in the State of North Dakota. Therefore, Mateo and the Distributor agree as follows: The parties acknowledge and agree that they have been advised that the North Dakota Securities Commissioner has determined the following agreement provisions are unfair, unjust or inequitable to North Dakota franchisees: A. Restrictive Covenants: Any provision whieh discloses the existence of covenants restricting competition contrarv' to Section 9-0S-06, N.D.C.C., without further disclosing that sueh covenants vvill be subject to this statute. B. Situs of Arbitration Proceedings: Any provision requiring that the parties must agree to arbitrate disputes at a locafion that is remote from the site of the franchisee's business. C. Restriction on Fomm: Any provision requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota. D. Liquidated Damages and Termination Penalties: Any provision requiring North Dakota franchisees to consent to liquidated damages or termination penalties. E. Applicable Laws: Any provision which specifies that any claims arising under the North Dakota franchise lavv vvill be govemed by the laws of a state other than North Dakota. F. Waiver of Trial by Jury: Any provision requiring North Dakota franchisees to consent to the waiver of a trial by jurv'. G. Waiver of Exemplarv' and Punitive Damages: Any provision requiring North Dakota franchisees to consent to a waiver of exemplarv' and punitive damages. H. General Release: Any provision requiring North Dakota franchisees to execute a general release of claims as a condition of renewal or transfer of a franchise. To the extent this Amendment vvill be deemed to be inconsistent with any terms or conditions of the Distributorship Agreement or the exhibits or attachments thereto, the terms of this Amendment vvill govem. All other terms and conditions of the Distributorship Agreement will remain the same. [SIGNATURE PAGE FOLLOWS] ND-2 PK 5431.2 IN WITNESS WnEREOF, each of the undersigned hereby acknowledges having read this Amendment, understands and consents to be bound by all of its terms, and agrees it will be effective as of the date first above written. DISTRIBUTOR: NMTC, INC. d/b/a MATCO TOOLS By: Name: Title: Date: By: Name: Title: Date: DISTRIBUTOR'S SPOUSE: By: Name: Title: Date: ND-3 PK 5431.2 Rhode Island Disclosure Addendum In recognition ofthe requirements of the Rhode Island Franchise Investment Aet, §§ 19 28.1-1 through 19-28.1-34 the Franchise Disclosure Document for NMTC, Ine. d/b/a Mateo Tools for use in the State of Rhode Island shall be amended to include the follovving: 1. Item 17, "Renewal, Termination, Transfer and Dispute Resolution," shall be amended by the addition of the following: Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a fomm outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Aet." 2. This addendum to the Disclosure Document shall be effective only to the extent, with respect to sueh provision, that the jurisdictional requirements of the Rhode Island Franchise Investment Act, §§ 19-28.l-I through 19-28.1-34, are met independently without reference to this addendum to the Disclosure document. Rl-I PK 5431.2 Rhode Island Distributorship Agreement Amendment THIS AMENDMENT to the Distributorship Agreement is entered into this day of , , by and betvveen NMTC, INC., d/b/a Mateo Tools ("Mateo") and (the "Distributor") to amend and revise certain provisions of the Distributorship Agreement between Mateo and the Distributor dated , , (the "Distributorship Agreement") as follows: The Distributor's Mateo® Tools business is to be located in the State of Rhode Island. Therefore, Mateo and the Distributor agree as follows: 1. Article 12 of the Agreement, under the heading "Dispute Resolution" and Article 13 of the Agreement, under the heading "Miscellaneous," shall be amended by the addition of the follovving: Notwithstanding the foregoing. Section 19-2S.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a fomm outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act." 2. This amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Rhode Island Franchise Investment Aet, §§ 19-28.1-1 through 192S. 1 -34, are met independently without reference to this amendment. IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Rhode Island amendment to the Distributorship Agreement on the same date as the Distributorship Agreement was executed. DISTRIBUTOR: NMTC, INC. d/b/a MATCO TOOLS By: Name: Title: Date: By: Name: Title: Date: DISTRIBUTOR'S SPOUSE: By: Name: Title: Date: RI-2 PK 5431.2 W^ashington Disclosure Addendum In recognition ofthe requirements ofthe Washington Franchise Investment Protection .Act, Wash. Rev. Code §§ 19.100.ISO, the Franchise Disclosure Document for NMTC, Inc. d/b/a Mateo Tools in connection with the offer and sale of franchises for use in the State of Washington shall be amended to include the following: 1. Item 17, "Renewal, Temiination, Transfer and Dispute Resolution," shall be amended by the addition of the following paragraphs at the conclusion of the Item: The state of Washington has a statute, RCW 19.100.180, which may supersede the franchise agreement in your relationship with the ftanchisor including the areas of termination and renewal of your franchise. There may also be court decisions vvhich may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. In any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration, or as determined by the arbitrator. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail. A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Aet except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, rights or remedies under the Act such as a right to a jury- trial may not be enforceable. Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer. 2. Each provision of this addendum to the disclosure document shall be effective only to the extent, with respect to such provision, that the jurisdictional rcquirements of the Washington Franchise Investment Protection Act, Wash. Rev. Code §§ 19.100.180, are met independently without reference to this addendum to the disclosure document. W.A-1 PK 5431.2 Washington Distributorship Agreement Amendment THIS AMENDMENT to the Distributorship Agreement is entered into this day of , by and betvveen NMTC, INC., d/b/a Mateo Tools ("Mateo") and (the "Distributor") to amend and revise certain provisions of the Distributorship Agreement between Mateo and the Distributor dated , , (the "Distributorship Agreement") as follows: , The Distributor's Mateo® Tools business is to be located in the State of Washington. Therefore, Mateo and the Distributor agree as follows: 1. The State of Washington has a statute, RCW 19.100.180 which may supersede the Distributorship Agreement in your relationship vvith Mateo including the areas of termination and renewal of your Distributorship. There may also be court decisions which may supersede the Distributorship Agreement in your relationship vvith Mateo including the areas of termination and renewal of your Distributorship. 2. In any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the State of Washington, or in a place mutually agreed upon at the time of the arbitrafion, or as determined by the arbitrator. 3. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail. 4. A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, rights or remedies under the .Act such as a right to a jurv- trial may not be enforceable. 5. Transfer fees are collectable to the extent that they reflect the Mateo's reasonable esUmated or actual costs in effecting a transfer. To the extent this Amendment will be deemed to be inconsistent with any terms or conditions of the Distributorship Agreement or the exhibits or attachments thereto, the terms of this Amendment will govem. All other terms and conditions of the Distributorship Agreement vvill remain the same. [SIGNATURE PAGE FOLLOWS] WA-2 PK 5431.2 IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Amendment, understands and consents to be bound by all of its terms, and agrees it will be effective as of the date first above vvritten. DISTRIBUTOR: NMTC, INC. d/b/a MATCO TOOLS By: Name: Titie: Date: Bv: Name: Titie: _ Date: . DISTRIBUTOR'S SPOUSE: By: Name: Title: Date: WA-3 PK 5431.2 MATCO DISTRIBUTOR CONSENT TO ALCOHOL AND DRUG TESTING FORM APPENDIX I TO FRANCHISE DISCLOSURE DOCUMENT I Mutco FDDTK - M i i ^ ^ 0j-lt>-f4V23.766.6, 3/29110 Appendix I NMTC, Inc. d/b/a Mateo Tools DISTRIBUTOR CONSENT TO ALCOHOL AND DRUG TESTING Prospective Franchisee/Distributors: In the event I am offered a distributorship and writhin in (5) days of notice from Maico Tools, I hereby voluntarily authorize any doctor, his/her employees or agents, together with any clinic, hospital or laboratory or other medical facility, to perform appropriate tests or examinations on my body fluid or hair samples (for example, urinalysis, blood chemistry, and hair analysis) for drugs and/or alcohol. I further give my permission to such doctor, his/her employees or agents, clinic, hospital or laboratory or other medical facility, to release the results of these tests to Mateo Toots, the examining physician and the laboratory, as well as each oftheir officers, agents, and employees. In addition, I hereby release and hold harmless fyiatco Tools and all such other persons and entities from any liability based upon the request for, administration of, and use of the results of any physical examination, induding substance abuse tests. I understand that in the event I fail the drug or alcohol test, Mateo Tools \N'\\\ not grant me a franchise. This authorization, consent and release is of a continuing nature and shail continue from this date throughout the term of my contract behveen Mateo Tools. Distributor Candidate: Printed Name Signature and Date Witness: Printed Name New/Existing Franchisees/Distributors Signature and Dale (during the term ofthe franchised distributorship): Upon request by Mateo Tools, I hereby voluntarily authorize any doctor, his/her employees or agents, together w/ith any clinic, hospital or laboratory or other medical facility, to perform appropriate tests or examinations on my body fluid or hair samples (for example, urinalysis, blood chemistry, and hair analysis) for drugs and/or alcohol. I frjrther give my permission to such doctor, his/her employees or agents, clinic, hospital or laboratory or other medical facility, to release the results of these tests to Mateo Tools, the examining physician and the laboratory, as well as each of their officers, agents, and employees. In addition, I hereby release and hold harmless Mateo Tools and all such other persons and entities from any liability based upon the request for, administration of, and use of the results of any physical examination, including substance abuse tests. I understand that in the event I fail the drug or alcohol test, Mateo Tools w\\\ have the right to terminate my Distributorship. This authorization, consent and release is of a continuing nature and shall continue from this date throughout the term of my contract betvtreen Mateo Tools. Distributor: Printed Name Signature and Date Printed Name Signature and Date Witness: PK 15450.1/Matco/Consent to Alcohol and Drug Test RECEIPT (To Be Retained bv You) NMTC, INC. d/b/a MATCO TOOLS Franchise Disclosure Document Issuance Date: March ? i ^ m 2 9 J l Q 10 This Disclosure Document summarizes certain provisions of the distributorship agreement and otiier informaiion in plain language. Read this disclosure document and all agreements carefully. If Mateo offers you a franchise, it must provide this Disclosure Document to you: (a) 14 calendar days before you sign a binding agreement with, or make a payment to, us or an affihate in connection with the proposed franchise sale, or graiU, or (b) Under Maryland, Nevv York, and Rhode Island law, if applicable, at the earlier of (i) your first personal meeting to discuss tlie franchise, or (ii) 10 business days before you sign a binding agreement vvith, or make payment to us or an affiliate in connection vvith tlie proposed franchise sale-oj^gram, or (c) Michigait-Ofegwtr and Wasliington require that we give you this disclosure document at least 10 business days before the e.xecution of any binding franchise or other agreement or the payment of any consideration, whichever occurs first. If Mateo does not deliver this Disclosure Document on time or if it contains a false or misleading statement or a material omission, a violation of federal and state lavv may hav e occurred and should be reported to the Federal Trade Commission, Washingion, D.C. 20580 and to the appropriate state agency listed infexhibitAppciidi;^F. The francliisor is NMTC. Inc. d/b/a Mateo Tools, 4403 Allen Road. Stow. Ohio 44224. Its lelephone number is (330) 9294949. Issuancedate: March 50r^)'.4»^22.jaLQThe francliise seller is Timothv J. Giimore.Eriicst„C-l.fliibcr^S£iiiQr Vice Presidcnt-ef, Sales of NMTC. Inc. d^/a Malco Tools, 4403 Allen Road, Stow," Oliio -44224, (330) 929-4949. Any additional individual franchise sellers involved in offering the distributorship are: Mateo authorizes the at>ents-lisied4ti-rcspc£liyc_slatc_ag£ncicsji mtLOcdjjiLAppendix G to receive service of process for usit ijillLe^paajailarj^^^ I Iiave received a Disclosure Document March 30. 200929, 2010 (and witli effective datcs_Qf_statc_rcRislration,Qr_c>:einption as ljSjcd„Qn the^Statc EfCectiyc Dat.gg_j)agc) that included the follovving E.xhibiis: Appendix A - Financial Statements. .Appendix B - Active Distributors, Appendix C - Tenninated Distributors, Appendix D -^Distributorsliip Agreement, .A.ppendix-AppciidiN_E - Distributor Disclosure Questionnaire, Appendix F - Stale Agencv' Exhibit, Appendix G - Agents for Service of Process, Appendix H - State-specific Disclosures and Stale Agreement Amendments, and Appendix I - Malco Distributor Consent to Alcohol and Dmg Testing Form. 1 acknovvledge tliat the infonnation contained in this Franchise Disclosure Document of Malco is confidential and proprietarv'- I agree that tliis infonruilion will be used only for purposes of evaluating the possible purchase of a Malco francliise. and will not be disclosed lo any person olher than my legal and financial advisors. Signed: Signed: Print Name: Prinl Name: Address: Address: Stale: Citv-: Zip: Telephone: Zip: Dated: Mateo F D I ^ P K A^>;^J.S2376(V(> Slate: Citv" Telephone: Dated: R-l tU.:iu,e9-3/29/|0 RECEIPT (To Be Retumed to Mateo Tools) NMTC, INC. d/b/a MATCO TOOLS Franchise Disclosure Document Issuance Date: March ^i^r^m^^MM This Disclosure Document summarizes certain provisions of the distributorship agreement and other infonnation in plain language. Read this disclosure document and all agreements carefully. If Malco offers you a franchise, it must provide this Disclosure Document to you: (a) 14 calendar days before you sign a binding agreement with, or make a payment to, us or an affiliate in connection with the proposed franchise sale^ or-grantr-or(b) Under Marvland, New York, and Rhode Island law, if applicable, at the earlier of (i) your first personal meeting to discuss the franchise, or (ii) 10 business days before you sign a binding agreement with, or make payinent to us or an affihate in connection vvith the proposed franchise sale or gram, or (c) Michigan-Gr«gon7 and Washington require that vve give you this disclosure documeni at least 10 business days before the execution of any binding franchise or other agreement or the payment of any consideration, whichever occurs first. If Mateo does not deliver this Disclosure Document on time or if it contains a false or misleading statement or a material omission, a violation of federal and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and lo the appropriate state agency listed in fehibitAppendiji F. The franchisor is NTVITC, Inc. d/b/a Malco Tools. 4403 Allen Road. Stow. Ohio 44224. Its telephone number is (330) 9294949. Issuance date: March 3i)r20^^>922.,J(iljQ. The franchise seller is Timothy J. Gtlniore.Eni_est_CJ..aubcr._SciUQr Vice President-ef^ Sales of NMTC, Inc. d/b/a Mateo Tools. 4403 Allen Road, Slow." Oliio -44224, (330) 929-4949. Any additional individual francliise sellers involved in offering the distributorsliip are: Mateo authorizes the gj^ents - \ t5 ted-i rcspcctiv:e_ statc_agcncics_identiried_Qn-Appendix G to receiv e service of process for tt^it in the partial iar^intc 1 have received a Disclosure Document March 30, 2()0929,,20jjL(andj\'ith,cfrcctivLe,dalcs_^^ as.Jisted„o 11 _lhetc._Effeetiv c_Patcs„.page) that included the follovving E.xliibits: Appendix A - Financial Statements, Appendix B - Active Distributors, Appendix C - Terminated Distributors, Appendix D -^Distributorship Agreement, Appendix-App£ndLx_E - Distributor Disclosure Questionnaire, Appendix F - State Agency Exhibil, Appendix G - Agents for Service of Process. Appendix H - State-specific Disclosures and State Agreement Amendments, and Appendix I - Maico Distributor Consent to Alcohol and Dmg Testing Form. I acknovvledge that the infonruilion contained in this Francliise Disclosure Document of Mateo is confidential and proprietarv'. 1 agree ihat this infonnation vvill be used only for purposes of evaluating the possible purchase of a Maico franchise, and will not be disclosed to any person other lliim my legal and financial advisors. Signed: Signed: Print Name: Print Name: Address: Address: State: Cily: Zip: Telephone: Zip: Telephone: Dated: Dated: Maico FDD/PK :i^^^> S2y76tiX}_ State: Citv- K-2 l,^.:^ii•a.)3^2\^•U) PLAVEKOCH April 26. 2010 Mr. Daniel E. Sexton Department of Commerce 85 7'" Place East, Suite 500 St. Paul, Minnesota 55101 Re: NMTC, File(F-2705 Rev\ i'^A LZ. t ( \' Ll. APR 2 7 20;0 b/a Mateo Tools ("Mateo" 1- ^ y%f \ ^ "f Pages Dear Mr. Sexton: Mateo has made several changes in Item 10 to clarify an existing policy. In addition, we also revised Section 13.5 of the Mateo Distributorship Agreement to include clarifying language requested by a state examiner. Accordingly, enclosed are pages 21-22 (for Item 10 of the FDD) and page 18 (for Section 13.5 of the Distnbutorship Agreement). Please replace these pages in your copies of the Mateo F D D . Also enclosed for your convenience are redlined pages that reflect these minor changes. Please contact me if you have any questions or comments. Sincerely. Plave K o c h P L C By: /^^^ /l^i^^cl, Ut Mark A. Kirsch Via FedEx Enclosures PK 27694.1 Plave Koch PLC 12355 Sunrise Valley Drive. Suite 230 Reston, Virginia 20191-3492 United States of America vww.PiaveKoch.com Mark A. Kirsch [email protected] direct phone 703.774.1210 direct fax 703.774.1201 qualified customers pursuant to an installment sale contract (which is referred to as a purchase money security agreement or purchase security agreement (or "PSA")), Mateo willfinancethe purchase and accept assignment ofthe installment contracts under the terms and conditions of the Mateo Purchase Securitv' Agreements/Credit Assignment Agreements. Copies of these agreements are attached as exhibits to this Disclosure Document. Malco may consider one or more of the follovving factors when evaluating the qualifications of a distributor for a Purchase Security Agreement and/or the terms under vvhich Mateo will purchase a customer's installment contracts from a distributor: (a) the distributor's purchase average, (b) the distributor's payment historv' on its open purchase account, (c) the value of the distributor's PSA contracts as compared to cash payments on the distributor's open purchase account, (d) the distributor's collection percentage from PSA accounts, (e) the customer's collection historv% and (f) the customer's current and past credit historv\ Customers who are not U.S. citizens and/or may not possess social security numbers may not qualify for financing under the installment contract/PSA program. Malco offers three forms of Purchase Securitv' Agreements/Credit Assignment Agreements to distributors: (a) a non-recourse credit assignment agreement, (b) a recourse credit assignmeni agreement vvith an addendum vvhich provides that you need not obtain Mateo's prior approval of your credit historv' and the creditworthiness ofthe customer provided that the customer does not currently have a charged off account with Mateo (referred lo as the "PSA Gold Card"), and (c) a 50% recourse credit assignment agreement (referred to as the "New Tech Program"). Under these forms of credit assignment agreements, upon acceptance of assignment of the customer's installment contract, you will receive a credit corresponding to the value of the net amount financed, less a reserve charge, to your open purchase account. This credit vvill be posted vvithin fortv'-eight hours of the acceptance of a contract assignment by .Vlatco. Under the current form of non-recourse credit assignment agreement, the price paid by Mateo to you for acceptance of the assigned installment contracts will not be less than 85% of the net cash price (although Mateo's current practice is to assign installment contracts at 91% of the net cash price). However, Malco may not accept assignment of any installment contract if the sale price exceeds the product's list price. Mateo will release you from all liability for the installment contracts, subject to certain exceptions enumerated in the agreement, and provided that you comply vvith the terms and conditions of the agreement. Under the Purchase Security Agreement/Credit Assignmeni Agreements, you must collect money owed by customers and remit the money to us. If you do not remit the full amount collected in a timely fashion, vve may charge you an administrative fee, currently set at S25 per occurrence, per contract, for delinquent or insufficient payments, or inaccurate reporting, as consideration for, among other things, Mateo's time and efforts in collecting monies, additional correspondence with you, credit bureaus and others, and administrative time and costs to correct data. Under the current PSA Gold Card agreement the price paid by Mateo to you for acceptance of the assigned installment contracts vvill not be less than 95% of the net cash price of the installment contracts (although Malco's cunent practice is to assign installment contracts at 97% of the net cash price). However, Mateo may not accept assignment of any installment contract if the sale price exceeds the product's list price. The 3% deduction from the full net cost price of the assigned installment contracts is a charge payable to Mateo as assignee of the assigned installment contracts. Under the current PSA Nevv Tech Agreement the price paid by Mateo is 95% of the net cash price of the installment contraci vvith a refundable reserve account. Malco has from time to time considered developing additional customer installment financing programs that may be recourse or non-recourse credit assignments, and/or may be available only to distributors vvho (a) qualify to participate; (b) have a minimum of six months or more experience as a Mateo distributor; and (c) are in compliance with their Distributorship Agreement. Currently, however, the only Purchase Security Agreements available are those described above. Mateo expects that if a new installmentfinancingprogram is developed and offered in the future, participation in any such program will be voluntary. Maico FDD./PK 23766.6 21 3./29/10 Equipment Leases In addition to the two Installment Financing Programs listed above, Mateo also offers a Lease Program for qualified shop ovvners or other customers of the distributor. The purpose of this program is to offer to qualified customers finaneing on shop equipment. If you qualify for participation in the lease financing program, you may sell equipment to your customers by offering a closed end lease to your customer, and Mateo vvillfinancethe purchase under the Mateo Distributor Lease Agreement, a copy of vvhich is attached as an exhibit to this Disclosure Document. Mateo vvill purehase the lease from you at a price that is not less than 90% ofthe value ofthe leased equipment, but not more than the list price. Mateo vvill be responsible for the collection of the lease payments until paid in fiiJl or until repossession is necessar)'- If the documents are not correctly and completely executed, Mateo may assign the documents to you for the amount owing under the lease at thefimeof the assignment. The current program is a non-recourse program. Upon acceptance ofthe lease, Mateo will post a credit to the distributor's open purchase account less a reserve charge. The reserve will not be less than 90% of the sale amount (although current practice is to credit 100% of the sale amount). Mateo and'or its affiliates have in the past sold, and may in the future sell, assign, or discount, vvith limited recourse, certain accounts and notes receivable. To the extent the notes, contracts, or other instruments require Mateo to provide services to you, Mateo will remain liable to provide sueh services. Hovvever, the third party to whom the note, contract or other instrument is assigned may be immune under the law to defenses to payment you might have against Mateo. Except as set forth above, Mateo and its affiliates (a) do not direcfiy or indirectly offer or arrange any financing, (b) do not receive direct or indirect pajmients for placingfinancing,and (e) do not guarantee your obligations to third parties. (11) FRANCfflSOR'S ASSISTANCE, ADV'ERTISING, COMPUTER SYSTEMS, AND TRAINING Except as listed beiovv, Mateo is not required to provide you with any assistance. Assistance Prior to Opening. Prior to beginning business under your Mateo® Distributorship, Mateo is required to provide you vvith the follovving: (A) Mateo will provide you vvith a List of Calls and Potenfial Customer List (see Article 1.2 of the Distributorship Agreement). Mateo designates List of Calls and Potential Customer List by identifying a minimum of 325 potential customers at businesses that generally employ mechanics and other individuals vvho may be potenfial customers for the Products. Actual or potential customers may or may not be U.S. citizens and may or may not possess social security numbers. Mateo is not required to assess, and is not responsible for assessing, whether the actual or potential customer is a U.S. citizen. You vvill operate as a mobile distributor and will not have a specified place of business. It is generally expected that you will retum your truck to your residence each evening, locate the computer at your residence, and otherwise operate the Distributorship fi'om your residence. Mateo estimates that the length of time betvveen the date you sign the Distributorship Agreement and the date you begin operating your Mateo® Distributorship will be betvveen 20 and 45 days, depending on how quickly you can complete training and obtain the truck, inventory, equipment and supplies needed to begin operafions. (B) Mateo will provide you with the use ofa copy ofthe Manual (see Article 3.10 of the Distributorship Agreement). Mateo reserves the right to provide the Manual electronically or in an electronic or computerreadable format, for example, via the Mateo Distributor Business System, or another method, or on a CD. Following is the Table of Contents of the 275 page Manual: Mateo FDD/PK 23766.6 22 3/29/10 ARTICLE 13 MISCELLANEOUS 13.1 Waiver. The failure of Mateo to enforce at any time any provision of this Agreement will in no way affect the validity or act as a waiver of this Agreement, or any part, or the right of Mateo thereafter to enforce it. The Distributor acknowledges that Mateo operates a large and diverse distributorship network and that Mateo is not obligated to enforce each distributorship agreement in a uniform manner with respect to the other distributors. 13.2 Notices. Any notice required under this Agreement will be deemed to have been duly given if it is addressed to the party enfitled to receive it at the address set forth on the cover page of this Agreement and it is personally served on the party, is sent by pre-paid United States certified mail, return receipt requested, or is sent by a recognized ovemight carrier (Federal Express, UPS, Purolator) that requires a signature acknowledging delivery. 13.3 Governing Law. This Agreement will be govemed by and construed in accordance vvith the laws of the State of Ohio, and the substantive law of Ohio will govem the rights and obligations of and the relationship betvveen the parties. 13.4 Severabilitv. If any term or provision of this Agreement is determined to be void, invalid, or unenforceable, such provision will automatically be voided and will not be part of this Agreement, but the enforceability or validity of the remainder of this Agreement will not be affected thereby. 13.5 Entire Agreement. This Agreement, including all exhibits and addenda, supersedes all prior verbal and vvritten agreements between the parties. Subject to our right to modify the Manual and the Business System standards, no change, amendment or modification to this Agreement will be effective unless made in writing and signed by both the Distributor and an officer of Mateo. Nothing in the Agreement or in any related agreement is intended to disclaim the representafions Mateo made in the Franchise Disclosure Document. 13.6 Definitions. For purposes of this Agreement, the follovving words will have the following definifions: (A) "Abandon" vvill mean the conduct of the Distributor, including acts of omission as well as commission, indicating the willingness, desire or intent of the Distributor to discontinue operating the Distributorship in accordance with the Business System and the standards and requirements set forth in the Manual and this Agreement. (B) "Customer" vvill mean, at any time during the Term of this Agreement, or upon terminafion, a person or business that has purchased Products from the Distributor within the immediately preceding twelve-month period. (C) "Mateo Tmck" will mean the tmck used by the Distributor solely in connection vvith the operation of his Distributorship. The Mateo Tmck vvill at all times during the Term of this Agreement comply with all of Mateo's standards and requirements as to color, size, engine size, storage capacity, graphics, on-board technology and design. (D) "TSTew Distributor Starter Inventory" will mean the initial inventory of Mateo Products required to be purchased by the Distributor. (E) "Operator" will mean the individual engaged or employed by the Distributor for purposes of operating the Distributorship under the terms ofany program authorized by Mateo to permit the hiring, by a Distributor, of another person to operate an additional tmck for the Distributorship. Mateo 2010 Distributorship Agreement PK 23775.3 P a g e 18 3/29/10 qualified customers pursuant to an installment sale contract:r-and (which is .referred to as a purchase money security_agre,ejne.at or purcjiase securitv agreement (or " P S A p l Mateo will finance the purchase and accept assignment of the installment contracts under the terms and conditions of the Mateo Purchase-Security Agreements/Credit Assignment AgreementS:-copies,__CQpie_s of which these agreements_are attached as exhibits to this Disclosure Document.- Mateo may consider one or more of the follovving factors when evaluating the qualificatims_iiLa-^islributQr--fot' ^ Purchase__Se_curit>' .Agreement and/jjOhe^emiS-undeiLwl-iich Mateo will purchase a_ciJSlQmer's installment contracts from a distributor: (a) the distributor's purchase average, fb^ tbe_distributor's pa:^_£nt_historv on its open purchase account, (cl the value qphe distributor's PSA_cnntra_ctS-as compared tQ_cash payments on the-distributor's open Pur.chase_account._Cd"i the_distributor's collection percentage from PSA-accounts, Ce^ the customer's colleelion histo^>^ and ffi the customer's current an_d_Dast_er£dit_history. Customers who are not U.S. eifizens and./or may not possess social security numbers may not qualify for Purchase-Security-Agreementsfinancingjjnder the, installment contract/PSA program. Mateo offers three forms of Purchase Security Agreements/Credit Assignment Agreementsjp distributors: (a) a non-recourse credit assignment agreement, (b) a recourse credit assignment agreement vvith an addendum which provides that you need not obtain Malco's prior approval of your credit historv' and the creditworthiness of the customer provided that the customer does not currenfiy have a charged off account vvith Mateo (referred to as the "PSA Gold Card"), and (c) a 50% recourse credit assignment agreement (referred to as the "New Tech Program"). Under these forms of credit assignment agreements, upon acceptance of assignment_of the_ciistome,cls installment-CQPtract. you will receive a credit corresponding to the value of the net amount financed, less a reserve charge, to your open purchase account. This credit vvill be posted vvithin forty-eight hours of the acceptance of a contract assignment by Mateo. Under the current form of non-recourse credit assignment agreement, the price paid by Malco to you for acceptance of the assigned installment contracts vvill not be less than 85% of the net cash price (although Mateo's current practice is to assign installment contracts at 91% of the net cash price). However, Mateo may not accept assignment of any installment contract if the sale price exceeds the product's list price. Mateo will release you from all liability for the installment contracts, subject to certain exceptions enumerated in the agreement, and provided that you comply with the terms and conditions of the agreement. Under the Purchase Security Agreement/Credit Assignment Agreements, you must collect money owed by distributorscusiomers and remit the money to us. If you do not remit the full amount collected in a timely fashion, we may charge you an administrative fee, currently set at $25 per occurrence, per contract, for delinquent or insufficient payments, or inaccurate reporting, as consideration for, among other things, Mateo's time and efforts in collecting monies, additional correspondence with you, credit bureaus and others, and administrative time and costs to correct data. Under the current PSA Gold Card agreement the price paid by Malco to you for acceptance of the assigned installment contracts vvill not be less than 95% of the net cash price of the installment contracts (although Mateo's current practice is to assign installment contracts at 97% of the net cash price). However, Mateo may not accept assignment of any installment contract if the sale price exceeds the product's list price. The 3% deduction from the full net cost price of the assigned installment contracts is a charge payable to Mateo as assignee of the assigned installment contracts. Under the current PSA New Tech Agreement the price paid by Mateo is 95% of the net cash price of the installment contract with a refundable reserve account. Mateo has from time to time considered developing additional customer installmentfinancingprograms that may be recourse or non-recourse credit assignments, and/or may be available only to distributors who (a) qualify to participate; (b) have a minimum of six months or more experience as a Mateo distributor; and (c) are in compliance vvith their Distributorship Agreement. Currently, however, the only Purehase Security Mateo FDD./PK 23766.6 21 3119110 REDLINE ARTICLE 13 IVnSCELLANEQUS 13.1 Waiver. The failure of Mateo to enforce at any time any provision of this Agreement vvill in no way affect the validity or act as a waiver of this Agreement, or any part, or the right of Mateo thereafter to enforce it. The Distributor acknowledges that Mateo operates a large and diverse distributorship network and that Mateo is not obligated to enforce each distributorship agreement in a uniform manner with respect to the other distributors. 13.2 Notices. Any nofice required under this Agreement will be deemed to have been duly given if it is addressed to the part)' entitled to receive it at the address set forth on the cover page of this Agreement and it is personally served on the party, is sent by pre-paid United States certified mail, retum receipt requested, or is sent by a recognized ovemight carrier (Federal Express, UPS, Purolator) that requires a signature acknowledging delivery. 13.3 Governing Law. This Agreement will be govemed by and constmed in accordance with the iaws ofthe State of Ohio, and the substantive lavv of Ohio will govem the rights and obligations of and the relafionship between the parties. 13.4 Severabilit\\ If any term or provision of this Agreement is determined to be void, invalid, or unenforceable, such provision will automafically be voided and will not be part of this Agreement, but the enforceability or validity ofthe remainder of this Agreement will not be affected thereby. 13.5 Entire Agreement. This Agreement, including all exhibits and addenda, supersedes all prior verbal and written agreements between the parties. Subject to our right to modify the Manual and the Business System standards, no change, amendment or modification to this Agreement wil] be effecfive unless made in wrifing and signed by both the Distributor and an officer of Mateo. Nothing in the -Agreement or in any related aareement is intended to disclaim the representations Mateo made in the Franchise Disclosure Document. 13.6 Definitions. For purposes of this Agreement, the follovving words will have the following definifions: (A) "Abandon" will mean the conduct of the Distributor, including acts of omission as vvell as commission, indicating the willingness, desire or intent of the Distributor to discontinue operating the Distributorship in accordance with the Business System and the standards and requirements set forth in the Manual and this Agreement. (B) "Customer" will mean, at any fime during the Term of this Agreement, or upon terminafion, a person or business that has purchased Products from the Distributor within the immediately preceding twelve-month period. (C) "Mateo Tmck" will mean the tmck used by the Distributor solely in connecfion with the operation of his Distributorship. The Mateo Tmck will at all times during the Term of this Agreement comply with all of Mateo's standards and requirements as to color, size, engine size, storage capacity, graphics, on-board technology and design. (D) "New Distributor Starter Inventory" vvill mean the initial inventory of Mateo Products required to be purchased by the Distributor. Mateo 2010 Distributorship Agreement PK 23775.3 P a g e 18 3/29/10