MBUSA New Vehicle Tier 3 Bonus Program Category I Strike Policy Overview: (Refer to RDA Program document, Rev. 7, February 2014 for full program details) Category I, 1st Strike: No monetary assessment; dealer will receive a Warning Letter, dealer placed on six-month probation. Probation period commences based on the date of when the infraction occurred. Category I, 2nd Strike: 50% assessment, at $445 per wholesale, via the “Miscellaneous Billing System” of the MBUSA New Vehicle Tier 3 Bonus Program monies paid in the month in which the violation occurred; via the “Miscellaneous Billing System”; rolling probation resets to six months based on the date of when the infraction occurred. Category I, 3rd & 4th Strikes: 100% assessment at $445 per wholesale of the MBUSA New Vehicle Tier 3 Bonus Program monies paid in the month in which the infraction occurred via the “Miscellaneous Billing System;” rolling probation resets to six months based on the date of when the infraction occurred. Category I, 5th Strike: 100% assessment at $445 per wholesale via the “Miscellaneous Billing System” of the MBUSA New Vehicle Tier 3 Bonus Program monies paid in the month in which the violation occurred; dealer is suspended from the program for six months based on the date of when the strike occurred. Dealers suspended from the program are not eligible to receive the Tier 3 Bonus Program payout for the length of the suspension period. Strikes #2 - 5 will be assessed based on the month in which the infraction occurred. Dealers are cleared of Category I strikes if they have placed Tier 3, Category I brand compliant communications in the marketplace for six consecutive months from the date of which they incurred their last strike, i.e., a strike occurring more than six months from the date of the last Category I infraction date will be reset as Category I, Strike #1. Upon Tier 3 Bonus Program suspension, the dealer will not receive the Tier 3 Bonus Program payout of $445* per wholesale. The suspended dealer’s Tier 3 communications will continue to be monitored. Continued infractions will result in a reset of the six- month suspension period based on the latest month in which the most recent infraction occurred. Note: A communication containing multiple infractions will be counted as one strike. A communication containing both a Category I and Category II infraction will default to a strike pertaining to the most egregious infraction, i.e., Category I infraction supercedes a Category II infraction. Published August 2015, Rev. 10 Mercedes-Benz Brand Communication Standards l Page 28