This Marketing Policy applies to all Hankook and Laufenn Brand Tires distributed by HANKOOK TIRE AMERICA CORP. (hereinafter referred to as HTAC). In this marketing policy,

* Discounts and credits vary based on product category.

Following categories are used:

1. 1. PCR : Passenger Car Radial tires & P-metric LT tires
2. 2. LTR : Light Truck Radial Tires
3. 3. ST : Specialty tires

* EXPORT OF "HANKOOK & LAUFENN PRODUCTS" OUT OF THE UNITED STATES IS PROHIBITED.

1. 1. HTAC will publish and distribute the Dealer Price Guide
   1. 1) Per Hankook Provided Price List
   2. 2) Warehouse orders are billed at price on the day of shipment
   3. 3) F.E.T - Applicable as shown on pricelist * F.E.T not subject to any discounts, bonus, or allowances
2. 2. Prices within the Dealer Price Guide are subject to change without prior notice
3. 3. Invoice pricing is based on billing date. (DFC Order)

1. 1. Freight Policy
   1. 1) Basic Shipment : 6,000 lbs
   2. 2) Hankook will ship any order 6,000 lbs. or greater
2. 2. Full load discount
   1. 1) Hankook offers a discount of 2% on mixed products (PCLT, TB) shipped in truckload quantities:
   2. 2) Based on a single truck(shipment) weight minimum of 25,000 pounds of shippable mixed products (PCLT, TB) and:
      1. (1) Full load discount eligibility is determined by the single truck (shipment) weight
      2. (2) However, if customer desires shipments under the specified minimum weight threshold, truckload discount will not apply
      3. (3) The application of discounts for shipments ineligible for full load is STRICTLY forbidden
      4. (4) Full load discount cannot be combined with "Will-Call Allowance"
3. 3. Minimum Weight Policy (under 6,000 lbs.)
   1. 1) Hankook can deliver shipments under 6,000 lbs. if requested by customer
   2. 2) Any shipments under 6,000 lbs. will be subject to a 2% surcharge on invoice
4. 4. Hawaii & Alaska : Separate Program
   1. 1) Hankook offers shipments to Hawaii and Alaska. Contact your Customer Service Representative for information about Availability and Timing
   2. 2) Separate Program will be applied for Hawaii, Alaska shipment
5. 5. Puerto Rico : Separate Program
   1. 1) Hankook offers shipments to Puerto Rico. Contact your Customer Service Representative for Availability and Timing
   2. 2) Separate Program will be applied for Puerto Rico shipment
6. 6. Shortage Claim
   1. 1) All shortage claims must be submitted no later than 10 business days after receipt of goods.
   2. 2) All shortage claims must be accompanied by the Bill of Lading (with packing slip). Shipper, driver and receiver must sign Proof of Delivery with the discrepancies noted, and the Hankook Invoice or Packing Slip referencing the invoice number.
   3. 3) HTAC will not accept any shortage claims without all the proper documents that mentioned above
7. 7. Will-Call
   1. 1) Minimum Weight: 1,000 lbs
   2. 2) Will-Call allowance 2%
   3. 3) Will-Call Allowance cannot be combined with "Full load discount"
   4. 4) Orders placed by 1pm (local time) will be available for pick up the next business day by appointment only
   5. 5) Orders placed after 1pm (local time) are available for pick up two (2) business days later, by appointment
   6. 6) If using your preferred carrier, then the carrier must call the Outbound Coordinator at DC locations at least 24 hours in advance to arrange a pick-up appointment
   7. 7) If a carrier arrives without a scheduled pick up time, the carrier will have to wait until it will be ready
   8. 8) All items on an order must be completely picked up, partial delivery will not be allowed. Anything on the order that was not picked up will be cancelled from the order
   9. 9) Any will-call order that has not been picked up within 7 days after order creation will be cancelled
   10. 10) WILL CALL CUSTOMERS ;

       Having no contract with the customer carrier, Hankook considers the shipment Free on Board (FOB) the Hankook distribution center. Therefore, the customer must file any claim directly with their chosen carrier. Customers are responsible for verifying piece count prior to leaving the distribution center and take responsibility for shipment contents upon the distribution center

8. 8. FedEx program
   1. 1) For the most urgent needs (maximum of 8 tires) FedEx shipping is available. To be shipped the same day, customers must place orders by noon (local time). Dealer product price plus the following express ground charges apply;
   2. 2) Price : Dealer regular program + FedEx Ground charge
   3. 3) Charge : $25 (US Mainland only) / Actual Cost (Outside of US Mainland)
   4. 4) FedEx Ground Delivery only / FedEx COLLECT (customer directly invoiced by FedEx)

1. 1. HTAC will publish and provide a separate price list based on the program
2. 2. Invoice pricing is based on billing date
3. 3. New price list published and provided by HTAC takes precedence over the existing price list

1. 1. PCR & LTR : 3.0% of HK Sales Dollars, 1.0% of LF Sales Dollars

   Eligibility for the Hankook Advertising and Marketing Fund Program is limited to those customers purchasing over $1,000,000 worth of Hankook / Laufenn product within the calendar year. Some restrictions may apply.

2. 2. AD Fund Program
   1. 1) Internet Advertisement
   2. 2) Newspaper / Magazine Advertisement
   3. 3) Television / Radio Commercial
   4. 4) Building / Vehicle Branding
   5. 5) Promotional Items / POP / POS Item
   6. 6) Direct Mail / Yellow Pages
   7. 7) Online Banner Ads (Internet) / Search Engine Marketing (Internet) / Online Target Marketing
   8. 8) Apparel and Gifts
   9. 9) Inflatables
   10. 10) Email Marketing Program (Internet)
   11. 11) Any other AD material not listed above that has been approved by HTAC
3. 3. Advertising Guidelines Overview
   1. 1) Advertising reimbursement eligibility is dependent on brand visibility. Please refer to the Hankook Advertising and Marketing Fund Program Guidelines for calculations, examples and other important details.
   2. 2) Pre-approval is required without exception
   3. 3) Evidence of Advertising, Pre-Approval and Original Invoice is required for reimbursement.
4. 4. AD Fund Claim Deadlines
   1. 1) To be eligible for credit against 2025 AD Fund accrual:
      1. (1) Advertising must be placed between January 1st, 2025 through February 28th, 2026
      2. (2) All AD Fund Claims for advertising must be submitted to the Hankook Marketing team within 60 days of insertion date
   2. 2) Exceptions
      1. (1) All AD Fund claims against 2025 accrual must be submitted and postmarked by March 31st, 2026
5. 5. Important Notes
   1. 1) The Hankook Marketing Division, after reviewing your AD Fund claim, reserves the right to reject an AD Fund claim
   2. 2) If rejected, AD Fund claims can be resubmitted one additional time within the 30 days of notification of ineligibility. The second AD Fund claim attempt must also be within the deadline of March 31st, 2026.
   3. 3) Hankook Tire America Corp. does not make payments to Publications, Broadcasting Companies, Web Developers/Designers or Suppliers directly.
   4. 4) There will be no carry-over of Advertising Allowance from year-to-year with the exception of approved accruals for insertions completed within the 2025 calendar year.
   5. 5) All advertising must comply with Local, State and Federal regulations
   6. 6) For any open past due invoices are that are not paid, the AVB or/and any other promotion bonus programs could not be issued * Refer to the "2025 Advertising and Marketing Program Guidelines" for in-depth explanation of eligible submissions, procedures and important pre-approval stipulations

1. 1. The payment terms of HTAC are "3% 10 days, 2% 30 days, Net 2nd 10th".
2. 2. The cut off date for all sales will be the 25th of the month.
3. 3. Cash discounts on payments are as follows;

   Due Dates	Discount rate
   Within 10 days	3%
   Within 30 days	2%
   2nd 10th	0%

   * The anticipation discounts applies only to the net amount excluding F.E.T., freight charges, sales tax, service fees and other charges. Anticipation discount will not count for the check issue date or post mark date on the envelope.
4. 4. HTAC must receive an actual payment checks or ACH/Wire, this must be received in our Bank promptly by the designated cash discount date on the invoice in order to be eligible for the discounts.
   1. 1) Dealers may be contacted by Hankook or an associated factor company to verify payment of invoices due that were not received by the due date.
   2. 2) Dealer who has any past due invoices, skipped invoices and/or partially paid invoices are not eligible for anticipation discounts.
   3. 3) Cash anticipation only allowed with ACH payments with remittance record.
   4. 4) ACH payments must include remittance advise or cash discount will be disallowed.
5. 5. Payments via check may be subject to a processing fee.
6. 6. All payments submitted to HTAC must be accompanied by dealer's remittance notice which indicates:
   A. Invoice number,
   B. Credit memo number (where applicable) against which the payment is being made.
7. 7. Dealers are not authorized to make any deductions from payments due HTAC, unless a credit memo has been issued to this effect.
8. 8. Any open past due invoices & open deductions on the past due invoices could be deducted from the payable bonuses
9. 9. The late charge could be charged for late payments on invoices. In case invoices are not paid by the due date, the late charge could be charged depending on how many days have passed since the due date. - Follow the AFR(Applicable Federal Rates) rates published by the IRS(Internal Revenue Service).

1. 1. HTAC will keep backorders if it is specifically requested by the customer and approved by HTAC for up to 90 days. In the event a backorder remains for more than 60 days, the backorder could be deleted by HTAC.
2. 2. In the event of a price change, the price on the backorder will be changed to the price prevailing on the date of shipment.
3. 3. All the orders should be shipped immediately when the stock is available. Any holding orders will not be allowed by HTAC.

1. 1. Returns or exchanges can only be made with written consent from HTAC
   1. 1) Customers must coordinate with their sales person, order support, and claims to complete a Hankook Return Tire Authorization Form (RTA), providing all necessary details such as the purchase order or shipment/BOL number, SKU numbers, quantities, etc
   2. 2) Tires may incur a 5% restocking fee if returned more than 30 days after the delivery date. Waivers of this fee must be approved by HTAC in writing
   3. 3) Customers are responsible for freight charges on returned tires
   4. 4) After the Return Authorization Form is completed, approved, and freight terms are confirmed, the customer must deliver the tires to HTAC’s warehouse within 14 business days * If tires are not returned within 14 business days, the claim will be cancelled and no credit will be issued.
2. 2. To receive credit or make an exchange, the following steps must be completed:
   1. 1) Hankook Return Tire Authorization Form with an HTAC return number must be submitted
   2. 2) The invoice number of the original purchase must be provided with the return request * Returns meeting these conditions will not be eligible for short pays.
3. 3. The following items are not eligible for return or credit:
   1. 1) Tires more than 6-month-old from date of purchase
   2. 2) Tires not in their original condition
   3. 3) Tires that have been discontinued
   4. 4) Tires that exceed three years past stamped DOT date * Tires falling under these exemptions will not be eligible for credit issuance.
4. 4. All return and exchange processes should be approved and confirmed in writing by HTAC
   1. 1) All returns and exchanges must be approved by HTAC
   2. 2) Any requests for a waiver of restocking fees must be approved by HTAC
   3. 3) Any Freight shipped to Hankook without prior authorization will be returned at the customer's expense
   4. 4) Any freight invoices received by Hankook for return tires, including FedEx invoices, will be charged back to the customer

1. 1. DFC Program
   1. 1) Delivery : To Door
   2. 2) Origin : Korea, Indonesia, China, Hungary
   3. 3) 5% Freight off-invoice allowed
   4. 4) Full truck load (FTL) discount (2%) will be applied to all DFC orders
   5. 5) Subject to production or logistics constraints Hankook Tire has the right to modify or reject the order.
2. 2. TP Direct Delivery Program
   1. 1) Delivery : To Door
   2. 2) Origin : USA
   3. 3) 1% Freight off-invoice allowed
   4. 4) Full truck load discount (2%) will be applied to all DFC orders
   5. 5) Subject to production or logistics constraints Hankook Tire has the right to modify or reject the order.
3. 3. Eligible Customers
   1. 1) Eligible Customer : Purchasing over $ 2.0 Mil. USD of product annually with at least a $500K credit line
4. 4. If a customer diverts a shipment from its original destination, the customer is then responsible for all additional reconsignment fees. Those fees include but not limited to: diversion, pre-pull, storage, trucking, demurrage and detention fees.
   1. 1) Customer needs to accept delivery appointments within four calendar days from US Port and three calendar days from rail ramp.
   2. 2) All deliveries are live unloads and they need to be unloaded within three hours after delivery
   3. 3) No diversion request after CTR ships from manufacturer.
5. 5. Shortage Claim
   1. 1) All shortage claims must be submitted no later than 10 business days after receipt of goods or claim will be rejected
   2. 2) All shortage claims must be accompanied by the Bill of Lading (with packing slip), driver's signature on Proof of Delivery with discrepancies noted, and the Hankook Invoice or Packing Slip referencing the invoice number
   3. 3) HTAC will not accept any shortage claims without all the proper documents that mentioned above

Bonus credits are earned on all net merchandise purchases (excluding F.E.T., cash discounts, anticipation and any other bonuses or allowances) in the calendar year of 2025

1. 1. Special net close-out sales and Winter sales will be counted for AVB bracket but AVB will NOT be paid on these sales.
2. 2. Secondary Sales

   - Distributor : Car Dealer, Secondary supply, NAP & RAP sales will NOT be counted nor paid towards AVB bracket.

   - Retailer : Car Dealer and Secondary Supply sales will be counted and paid towards AVB bracket.

3. 3. AVB credit will be issued the month following the end of the term.
4. 4. AVB calculation is based on the following net purchase brackets.
5. 5. Approved Quarterly payouts will be paid out at 80% and the remaining 20% will be paid at the conclusion of 2025 calendar year.
6. 6. For any open past due invoices are that are not paid, the AVB bonus will not be issued

Annual Amount (US$)
From	To	Bonus / % of Net Sales
500,000	999,999	2.00%
1,000,000	1,999,999	3.00%
2,000,000	2,999,999	3.50%
3,000,000	3,999,999	4.00%
4,000,000	4,999,999	4.50%
5,000,000	6,499,999	5.00%
6,500,000	7,999,999	5.50%
8,000,000	9,999,999	6.00%
10,000,000	11,999,999	6.50%
12,000,000		7.00%