Incentive Program

CUSTOMER REFERRAL INCENTIVE PROGRAM

At Competition Headwear, we believe the most effective way of growing our business is through word of mouth advertising. We have gone to great lengths to ensure the complete satisfaction of our clients, in turn relying on them to share their experiences with their associates, thus helping us to expand our client base.

As part of a new program for 2004, Competition Headwear would like to recognize and reward those who share our name and refer others to us for business. We have divided the program into two areas: 1) Referrals 2) Referrals directly resulting in an order.

REFERRALS
REFERRALS DIRECTLY RESULTING IN AN ORDER
PROGRAM GUIDELINES

REFERRALS

The referral program is set up on a point system to be reviewed on a quarterly basis. For each person you refer to us, you will be awarded 5 points. At the close of each calendar quarter, your points will be totaled and you will be offered a gift certificate with a dollar amount equal to the number of points accrued. Points accrued during one quarter will not be carried over into the next.

REWARDS:

Each point has been assigned a value of $1.00, thus giving each referral a total value of $5.00. The gift certificate values will be limited to a maximum of $100.00 per quarter. Points are not redeemable for cash. Gift certificates include, but are not limited to the following merchants: American Airlines, Barnes & Noble, Bed Bath & Beyond, Gap, Pottery Barn, Renaissance Hotels and more. Please visit our redemption site and follow the links to view a complete list.

Number of Referrals	Points	Gift Certificate Value
1	5	$ 5
2	10	$ 10
3	15	$ 15
4	20	$ 20
5	25	$ 25
6	30	$ 30
7	35	$ 35
8	40	$ 40
9	45	$ 45
10	50	$ 50
11	55	$ 55
12	60	$ 60
13	65	$ 65
14	70	$ 70
15	75	$ 75
16	80	$ 80
17	85	$ 85
18	90	$ 90
19	95	$ 95
20 or more	100	$ 100

REQUIREMENTS:

**THE PERSON THAT YOU REFER MUST MENTION WHO REFERRED HIM/HER**. If your referral fails to mention your name within the first 7 days of initial contact with Competition Headwear, we will not award any credit. Our customer service representatives will make every effort to ask each person if they were referred and if so, who referred him/her. Competition Headwear representatives are not required to ask about the referrals, but will try to do so as a courtesy.

REFERRALS DIRECTLY RESULTING IN AN ORDER

Competition Headwear is a company that values ALL of its customers and any kind of referral is tremendously valuable. We believe that small orders may come with great potential, making them equally important as the larger ones. Though equally important, we must recognize the differences in the immediate contribution each order brings to our company. Therefore, the rewards are determined based on the monetary value of the resulting order, where the value of the gift increases according to the value of the actual merchandise ordered. Artwork, logo creation(s), shipping, or other additional charges are excluded when evaluating the purchase order value.

This area of the rewards program has been structured so that your efforts are recognized upon receipt of the referred person’s purchase order. When the person you refer places an order with Competition Headwear, you will be notified by us within approximately 48 hours, provided that we have been given your proper contact information. Your gift certificate reward will be sent within 7 - 10 days upon completion of the referred person’s order. The reward will be offered for the FIRST ORDER ONLY.

REWARDS:

The gift certificate values will be limited to a maximum of $500.00 per quarter. These certificates are not redeemable for cash. Gift certificates include, but are not limited to the following merchants: American Airlines, Barnes & Noble, Bed Bath & Beyond, Gap, Pottery Barn, Renaissance Hotels and more. Please visit our redemption site and follow the links to view a complete list.

Purchase Order Value	Gift Certificate Value
$ 500 – $ 1,000	$ 25
$ 1,000 – $ 1,500	$ 50
$ 1,500 – $ 2,500	$ 75
$ 2,500 – $ 3,500	$100
$ 3,500 – $ 5,000	$150
$ 5,000 – $ 7,500	$200
$ 7,500 – $ 10,000	$250
$ 10,000 – $ 15,000	$350
$ 15,000 – $ 20,000	$400
$ 20,000 or more	$500

REQUIREMENTS:

1. The referral must result in an order within 90 days of the date the referred person(s) initially made contact with Competition Headwear.

2. Resulting purchase order must be for caps and/or visors (other apparel is excluded from this promotion) AND meet our minimum quantity requirement of 72 pieces or $500.00.

3. The referred person’s purchase order must include the name and contact information of the person who referred them. If they fail to include that information on the purchase order, they may provide it in writing via e-mail or fax within 7 days of the order date. If we do not receive that information within the specified time frame, no reward will be offered.

REFERRAL GUIDELINES

1. Any person(s) referred to Competition Headwear must meet the following requirements in order for the person who referred him/her to receive credit:

a. The referred person(s) must not already be part of Competition Headwear’s currently existing customer base. For the purpose of this program, we have defined our current customer base to include any one individual (not the company) who has placed an order, called in for a quote, called in for information, or who has responded to any form of contact initiated by a Competition Headwear representative for any number of reasons related to sales within the last 2 years.
b. Even if the referred person(s) is not considered to be a “current” customer by the above definition, they must not be familiar with Competition Headwear from a previously existing supplier relationship.
c. The referred person(s) must be a member of ASI OR be a part of the promotional products, marketing, and/or advertising industries.

2. Referral credits and/or rewards will be extended to only one person for each qualified referral we receive. In the event that someone you refer lists more than one person, we will award credit only to the first name provided.

3. Referrals are considered valid ONLY for inquiries regarding caps or visors manufactured and embroidered by Competition Headwear. Embroidered apparel or other merchandise is not included as a part of this program.

Please understand that the purpose of this program is a genuine attempt to show our appreciation for and reward those who help Competition Headwear continue to grow. We hope that people will benefit from this program and participate with honesty and integrity. In an effort to prevent any misuse or abuse of this program, each referral will be subject to review. Competition Headwear reserves the right to reject credits and/or rewards for referrals as it deems fit.

This referral incentive program is scheduled to go into effect on January 1, 2004, continuing through December 31, 2004, whereupon Competition Headwear may or may not choose to renew the program for the following year. Competition Headwear reserves the right to make amendments to, reformat, or terminate this program at any time and without notice. Any changes made in the program will become effective at the start of the next calendar quarter. Those changes will only apply to referrals received after the date that the changes became effective and will not affect rewards earned in the previous quarter. In the event that Competition Headwear chooses to terminate this program, it will a) wait until the close of the current calendar quarter or b) close the current calendar quarter immediately, awarding gifts for any points accrued and/or purchase orders received up until that point. If the program is terminated and Competition Headwear has received a referral that results in a purchase order, we will honor our commitment to offer an award provided that the initial inquiry from the referred person(s) comes BEFORE the program is terminated AND complies with all of the previously stated rules and guidelines.

ASI 46179