<SUBMISSION>
<ACCESSION-NUMBER>0000950124-05-005170
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20050822
<ITEMS>1.01
<ITEMS>5.03
<ITEMS>9.01
<FILING-DATE>20050826
<DATE-OF-FILING-DATE-CHANGE>20050826
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ACTION PERFORMANCE COMPANIES INC
<CIK>0000892147
<ASSIGNED-SIC>5090
<IRS-NUMBER>860704792
<STATE-OF-INCORPORATION>AZ
<FISCAL-YEAR-END>0930
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-11866
<FILM-NUMBER>051050080
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1480 SOUTH HOHOKAM DRIVE
<CITY>TEMPE
<STATE>AZ
<ZIP>85281
<PHONE>6023373700
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1480 SOUTH HOHOKAM DRIVE
<CITY>TEMPE
<STATE>AZ
<ZIP>85281
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>p71128e8vk.htm
<DESCRIPTION>8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Date of report (Date of earliest event reported): August&nbsp;22, 2005</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>ACTION PERFORMANCE<BR>
COMPANIES, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>(Exact Name of Registrant as Specified in its Charter)</B></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Arizona</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>0-21630</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>86-0704792</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>(State or Other Jurisdiction<BR>
of Incorporation)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Commission File<BR>
Number)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(IRS Employer<BR>
Identification No.)</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>1480 South Hohokam Drive, Tempe, Arizona</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>85281</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>(Address of Principal Executive Office)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Zip Code)</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>(602)&nbsp;337-3700</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt"><B>(Registrant&#146;s telephone number, including area code)</B></DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>(Former Name or Former Address, if Changed Since Last Report)</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (<I>see </I>General
Instruction A.2. below):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the
Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the
Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD></TD><TD colspan="8"><A HREF="#000">Item&nbsp;1.01. Entry Into a Material Definitive Agreement</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">Item&nbsp;5.03 Amendments to Articles of Incorporation or Bylaws; Changes in Fiscal Year</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#002">Item&nbsp;9.01. Financial Statements and Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="p71128exv3w1.htm">EX-3.1</A></TD></TR>
<TR><TD colspan="9"><A HREF="p71128exv10w1.htm">EX-10.1</A></TD></TR>
</TABLE>
</CENTER>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<!-- link2 "Item&nbsp;1.01. Entry Into a Material Definitive Agreement" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1.01. Entry Into a Material Definitive Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As previously disclosed, on July&nbsp;28, 2005 Herbert M. Baum was appointed Executive Chairman of
the Company. On August&nbsp;2, 2005 the Compensation Committee of the Board of Directors approved the
terms of Mr.&nbsp;Baum&#146;s compensation arrangements and agreed to enter into an Employment Agreement with
Mr.&nbsp;Baum effective August&nbsp;15, 2005. Mr.&nbsp;Baum and the Company finalized and executed the Employment
Agreement on August&nbsp;22, 2005, the date on which the Board approved Amended and Restated Bylaws
creating the position of Executive Chairman. Pursuant to the Employment Agreement, Mr.&nbsp;Baum will
receive an annual base salary of $180,000. In addition, Mr.&nbsp;Baum will receive an option to acquire
100,000 shares of Action Performance common stock. The Employment Agreement provides for severance
payments to Mr.&nbsp;Baum in the event he terminates his employment for good reason (as defined in the
Employment Agreement), is terminated by the Company without cause (as defined in the Employment
Agreement) or upon certain termination events following a change of control (as defined in the
Employment Agreement).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The description of the Employment Agreement with Herbert Baum is not complete and is qualified
in its entirety by the full text of such document, which is filed as Exhibit&nbsp;10.1, and incorporated
by reference herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The stock award made to Mr.&nbsp;Baum is being made under an exemption to the shareholder approval
requirements of the NYSE relative to awards granted to newly hired officers or employees.
</DIV>
<!-- link2 "Item&nbsp;5.03 Amendments to Articles of Incorporation or Bylaws; Changes in Fiscal Year" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5.03 Amendments to Articles of Incorporation or Bylaws; Changes in Fiscal Year</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As noted above, on August&nbsp;22, 2005, the Board of Directors amended and restated Action
Performance&#146;s bylaws. The bylaws were amended to create the officer position of Executive Chairman
and to clarify the authority of various officer positions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy of the Bylaws is attached to this Form 8-K as Exhibit&nbsp;3.1.
</DIV>
<!-- link2 "Item&nbsp;9.01. Financial Statements and Exhibits" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Exhibits</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amended and Restated Bylaws of Action Performance Companies, Inc.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Employment Agreement between Herbert M. Baum and Action Performance Companies,
Inc.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SIGNATURES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated: August&nbsp;25, 2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">ACTION PERFORMANCE<BR>COMPANIES, INC.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">David M. Riddiford</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">David M. Riddiford</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer, Secretary and Treasurer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.1
<SEQUENCE>2
<FILENAME>p71128exv3w1.htm
<DESCRIPTION>EX-3.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv3w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;3.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THIRD AMENDED AND RESTATED BYLAWS</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>OF</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ACTION PERFORMANCE COMPANIES, INC.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>an Arizona corporation</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Dated August&nbsp;22, 2005
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="82%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Page</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" align="center">ARTICLE I<BR></TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" align="center">Offices<BR></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;1.01</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Principal Office</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;1.02</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Offices</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" align="center">ARTICLE II<BR></TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" align="center">Meetings of Shareholders<BR></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.01</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Annual Meeting</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.02</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Special Meetings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.03</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice and Purpose of Meetings; Waiver</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.04</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Quorum; Manner of Acting and Adjournment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.05</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Record Date</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.06</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Presiding Officer; Order of Business</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.07</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Voting</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.08</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Voting Lists</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Participation in Shareholders&#146; Meeting</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Shareholders in Lieu of Meeting</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" align="center">ARTICLE III<BR></TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" align="center">Board of Directors<BR></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.01</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Powers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.02</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Number and Term of Office</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.03</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Qualification and Election</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.04</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Presiding Officer</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.05</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Resignations</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.06</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vacancies</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.07</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Removal</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.08</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Place of Meeting</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regular Meeting</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Special Meetings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Quorum, Manner of Acting, Adjournment, and Action Without Meeting</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Committees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compensation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dividends</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Minutes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" align="center">ARTICLE IV<BR></TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" align="center">Notice &#151; Waivers<BR></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.01</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice, What Constitutes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.02</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Waiver of Notice</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">-i-
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS<BR>
(continued)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="82%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Page</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" align="center">ARTICLE V<BR></TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" align="center">Officers<BR></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.01</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Number, Qualifications and Designation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.02</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Election and Term of Office</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.03</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subordinate Officers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.04</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Resignations</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.05</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Removal</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.06</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vacancies</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.07</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">General Powers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.08</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Chair and Vice Chair of the Board</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Executive Chairman</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Chief Executive Officer; President</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Vice Presidents</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Secretary</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Treasurer</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Officers&#146; Bonds</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Salaries</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" align="center">ARTICLE VI<BR></TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" align="center">Stock<BR></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.01</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Issuance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.02</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Shares Without Certificates</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.03</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subscriptions for Shares</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.04</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transfers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.05</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Share Certificates; Share Record Books</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.06</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lost, Destroyed, Mutilated or Stolen Certificates</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.07</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transfer Agent and Registrar</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" align="center">ARTICLE VII<BR></TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" align="center">Miscellaneous<BR></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.01</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Seal</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.02</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Checks</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.03</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Contracts</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.04</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Deposits</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.05</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Statements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.06</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Records</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.07</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Voting Securities Held by the Corporation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.08</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment of Bylaws</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">-ii-
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SECOND AMENDED AND RESTATED BYLAWS</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>OF</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ACTION PERFORMANCE COMPANIES, INC.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE I</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>Offices</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.01 <U>Principal Office</U>. The principal office of the Corporation in the State
of Arizona shall be located in Maricopa County, Arizona or at such other location as may be
established by the board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.02 <U>Other Offices</U>. The Corporation also may have offices at other places
within or without the State of Arizona.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE II</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>Meetings of Shareholders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.01 <U>Annual Meeting</U>. The board of directors may determine the place, date and
time of the annual meetings of the shareholders, but it no such place, date and time is fixed, the
meeting for any calendar year shall be held at the Corporation&#146;s known place of business at 10:00
a.m. on the first Tuesday in March of each year. If that day is not a &#147;Business day&#148; (as that term
is defined in the Arizona Business Corporation Act, as amended from time to time (the &#147;BCA&#148;)), the
meeting shall be held on the next succeeding Business day. At that meeting the shareholders
entitled to vote shall elect such directors and transact such business as may properly be brought
before the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.02 <U>Special Meetings</U>. Special meetings of the shareholders of the
Corporation may be called at any time by the executive chairman, the secretary, two or more
directors, or the holders of not fewer than one-tenth (1/10) of all the shares entitled to vote at
the meeting, unless otherwise prohibited by Section&nbsp;10-2703 of the Arizona Revised Statutes, as it
may be amended from time to time, or by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.03 <U>Notice and Purpose of Meetings; Waiver</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Written notice stating the data, time and place of meetings and, in case of a special
meeting, the purpose or purposes for which the meeting is called, shall be delivered not less than
ten (10)&nbsp;nor more than sixty (60)&nbsp;days before the date of the meeting, either personally or by
mail, by an officer of the Corporation at the direction of the person or persons calling the
meeting, to each shareholder of record entitled to vote at such meeting. If mailed, such notice
shall be deemed to be delivered when mailed to the shareholder at the shareholder&#146;s address as it
appears on the stock transfer books of the Corporation.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;A shareholder may waive any notice required by the BCA, the articles of incorporation of
these bylaws before or after the date and time stated in the notice. The waiver shall be in
writing, signed by the shareholder entitled to the notice and delivered to the Corporation for
inclusion in the minutes or filing with the corporate records. A shareholder&#146;s attendance at or
participation in a meeting (i)&nbsp;waives objection to lack of notice or defective notice of the
meeting, unless the shareholder at the beginning of the meeting objects to holding the meeting or
transacting business at the meeting; or (ii)&nbsp;waives objection to consideration of a particular
matter at the meeting that is not within the purpose or purposes described in the meeting notice,
unless the shareholder objects to considering the matter when it is presented.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.04 <U>Quorum; Manner of Acting and Adjournment</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Shares entitled to vote as a separate voting group may take action on a matter at a
meeting of shareholders only if the quorum of those shares exists with respect to that matter.
Unless otherwise provided by law or the articles of incorporation, a majority of the votes entitled
to be cast on the matter by the voting group constitutes a quorum of that voting group for action
on that matter. Unless otherwise provided in the articles of incorporation or these bylaws, once a
share is represented for any purpose at a meeting, it is deemed present for quorum purposes for the
remainder of the meeting and for any adjournment of that meeting unless a new record date is or
must be set for that adjourned meeting. If a quorum exists, action on a matter, other than the
election of directors, by a voting group is approved if the votes cast within the voting group
favoring the action exceed the votes cast opposing the action, unless the articles of incorporation
or the BCA require a greater number of affirmative votes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Absent special circumstances, the shares of the Corporation are not entitled to vote if
they are owned directly or indirectly by a second corporation, domestic or foreign, and the
Corporation owns directly or indirectly a majority of the shares entitled to vote for directors of
the second corporation. This section does not limit the power of the Corporation to vote any
shares, including its own shares, held by it in a fiduciary capacity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The affirmative vote of the holders of a majority of the shares then present is sufficient
in all cases to adjourn a meeting to another date, time and place. Notice need not be given of the
adjourned meeting if the date, time and place thereof are announced at the meeting at which the
adjournment is taken. At the adjourned meeting the Corporation may transact any business that
might have been transacted at the original meeting. If the adjournment is for more than one
hundred twenty (120)&nbsp;days, or if after the adjournment a new record date is fixed for the adjourned
meeting, a notice of the adjourned meeting shall be given to each shareholder of record entitled to
vote at the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.05 <U>Record Date</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;In order that the Corporation may determine the shareholders entitled to notice of a
shareholders&#146; meeting, to demand a special meeting, to vote or to take any other action, the board
of directors may fix a future date as the record date, which may not be more than seventy (70)&nbsp;days
before the meeting or action requiring a determination of shareholders. If not otherwise fixed,
the record date for determining shareholders entitled to notice of and to vote
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">at an annual or special shareholders&#146; meeting is the day before the effective date of the
first notice to shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;A determination of shareholders entitled to notice of or to vote at a shareholders&#146;
meeting is effective for any adjournment of the meeting unless the board of directors fixes a new
record date, which it shall do if the meeting is adjourned to a date more than one hundred twenty
(120)&nbsp;days after the date fixed for the original meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.06 <U>Presiding Officer; Order of Business</U>. Meetings of the shareholders shall
be presided over by the chair of the board of directors, if there be one, or if the chair is not
present, by the vice chair of the board of directors, if there be one, or if the vice chair is not
present, by the executive chairman, or if the executive chairman is not present, by the president,
or if the president is not present, by a vice president in the order designated by the board of
directors, or if the vice president is not present, by a chair to be chosen by a majority of the
shareholders entitled to vote at the meeting who are present in person or by proxy. The secretary
of the Corporation, or, in the secretary&#146;s absence, an assistant secretary, shall act as secretary
of every meeting, but if neither the secretary nor an assistant secretary is present, the presiding
officer shall choose any person present to act as recording secretary of the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.07 <U>Voting</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except with respect to the election of directors, each shareholder of record (except the
holder of shares that have been called for redemption and with respect to which an irrevocable
deposit of funds sufficient to redeem such shares has been made) shall have the right, at every
shareholders&#146; meeting, to one (1)&nbsp;vote for every share, and to a corresponding fraction of a vote
with respect to every fractional share, of stock of the Corporation standing in his or her name on
the books of the Corporation, subject, however, to any provisions respecting voting rights as may
be contained in the articles of incorporation or any amendments thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Every shareholder entitled to vote at a meeting of shareholders or to express consent or
dissent to corporate action in writing without a meeting may authorize another person or persons to
act for him or her by proxy. Every proxy shall be executed in writing by the shareholder or by his
or her duly authorized attorney-in-fact and shall be filed with the secretary or an assistant
secretary of the Corporation before the taking of any vote on the issue as to which the proxy
intends to act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.08 <U>Voting Lists</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;After fixing a record date for a meeting, the Corporation shall prepare an alphabetical
list of the names of all of its shareholders who are entitled to notice of a shareholders&#146; meeting.
The list shall be arranged by voting group, and within each voting group by class or series of
shares, and shall show the address of and number of shares held by each shareholder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The shareholders&#146; list shall he available for inspection by any shareholder, beginning two
(2)&nbsp;business days after notice of the meeting is given for which the list was prepared and
continuing through the meeting, at the Corporation&#146;s principal office, the office of the
Corporation&#146;s transfer agent if specified in the meeting notice or at another place identified in
</DIV>

<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the meeting notice in the city where the meeting will be held. A shareholder, its agent or
its attorney on written demand may inspect and, subject to the requirements of Section&nbsp;10-1602 of
the BCA, may copy the list, during regular business hours and at its expense, during the period it
is available for inspection.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Corporation shall make the shareholders&#146; list available at the meeting, and any
shareholder, its agent or its attorney may inspect the list at any time during the meeting or any
adjournment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Refusal or failure to prepare or make available the shareholders&#146; list does not effect the
validity of action taken at the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.09 <U>Participation in Shareholders&#146; Meeting</U>. Unless the articles of
incorporation or these bylaws provide otherwise, the board of directors may permit any or all
shareholders to participate in an annual or special shareholders&#146; meeting by or conduct the meeting
through use of any means of communication by which all shareholders participating may
simultaneously hear each other during the meeting. If the board of directors in its sole
discretion elects to permit participation by such means of communication, the notice of the meeting
shall specify how a shareholder may participate in the meeting by such means of communication. The
participation may be limited by the board of directors in its sole discretion to specified
locations or means of communications. A shareholder participating in a meeting by this means is
deemed to be present in person at the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.10 <U>Consent of Shareholders in Lieu of Meeting</U>. Action required or permitted
by law to be taken at a shareholder&#146;s meeting may be taken without a meeting if the action is taken
by all of the shareholders entitled to vote on the action. The action must be evidenced by one or
more written consents describing the action taken, signed by all of the shareholders entitled to
vote on the action and delivered to the Corporation for inclusion in the minutes or filing with the
corporate records. A consent signed under this section has the effect of a meeting vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If not otherwise fixed in accordance with Section&nbsp;2.05 hereof or by law, the record date for
determining shareholders entitled to take action without a meeting is the date the first
shareholder signs the consent. Unless otherwise specified in the consent or consents, the action
is effective on the date that the last shareholder signs the consent or consents. Any shareholder
may revoke its consent by delivering a signed revocation of the consent to the executive chairman,
president or secretary before the date that the last shareholder signs the consent or consents.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE III</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>Board of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.01 <U>Powers</U>. The Corporation shall have a board of directors, which shall
have full power to conduct, manage, and direct the business and affairs of the Corporation, except
as specifically reserved or granted to the shareholders or otherwise limited by law, the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">articles of incorporation, these bylaws or an agreement authorized under Section&nbsp;10-732 of the
BCA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.02 <U>Number and Term of Office</U>. The board of directors shall consist of such
number of directors, not fewer than one (1)&nbsp;nor more than nine (9)&nbsp;as may be determined from time
to time by resolution of the board of directors. Except as hereinafter provided, directors shall
be elected at the annual meeting of the shareholders and each director shall serve until his or her
successor shall be elected and qualified, or until his or her earlier resignation or removal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.03 <U>Qualification and Election</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;All directors of the Corporation shall be natural persons of at least 18&nbsp;years of age, and
need not be residents of Arizona or shareholders of the Corporation, unless the articles of
incorporation provide otherwise. Except in the case of vacancies, directors shall be elected by
the shareholders. Upon the demand of any shareholder at any meeting of shareholders for the
election of directors, the chair of the meeting shall call for and shall afford a reasonable
opportunity for the making of nominations for the office of director. If the board of directors is
classified with respect to the power of shareholders and/or voting groups to elect directors or
with respect to the terms of directors and if, due to a vacancy or vacancies or otherwise,
directors of more than one class are to be elected, each class of directors to be elected at the
meeting shall be nominated and elected separately. Any shareholder may nominate as many persons
for the office of director as there are positions to be filled. If nominations for the office of
director have been called for as herein provided, only candidates who have been nominated in
accordance herewith shall be eligible for election.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;At each election for directors every shareholder entitled to vote at such election shall
have the right to vote, in person or by proxy, the number of shares owned by the shareholder for as
many persons as there are directors to be elected and for whose election the shareholder has a
right to vote, or to cumulate the shareholder&#146;s votes by giving one candidate as many votes as the
number of such directors multiplied by the number of the shareholder&#146;s shares shall equal, or by
distributing such votes on the same principle among any number of such candidates. The candidates
receiving the highest number of votes from each class or group of classes entitled to elect
directors separately up to the number of directors to be elected in the same election by such class
or group of classes shall be elected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.04 <U>Presiding Officer</U>. Meetings of the board of directors shall be presided
over by the chair of the board, if there be one, or if the chair is not present, by the vice chair
of the board, if there be one, or if the vice chair is not present, by the executive chairman, or
if the executive chairman is not present, by the president, or if the president is not present, by
a vice president, in the order designated by the board of directors, or if the vice president is
not present, by a chair to be chosen by a majority of the board of directors at the meeting. The
secretary of the corporation, or, in the secretary&#146;s absence, an assistant secretary, shall act as
secretary of every meeting, but if neither the secretary nor an assistant secretary is present, the
chair of the meeting shall choose any person present to act as recording secretary of the meeting.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.05 <U>Resignations</U>. Any director of the Corporation may resign at any time by
giving written notice to the board of directors or its chair, or to the executive chairman,
chairman of the board or secretary of the Corporation. Such resignation shall be effective when it
is delivered unless the notice specifies a later effective date or event. The acceptance of a
resignation shall not be necessary to make it effective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.06 <U>Vacancies</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Unless the articles of incorporation provide otherwise, if a vacancy occurs on the board
of directors, including a vacancy resulting from an increase in the number of directors, either the
shareholders may fill the vacancy or the board of directors may fill the vacancy. If the directors
remaining in office constitute fewer than a quorum of the board, they may fill the vacancy by the
affirmative vote of a majority of all of the directors remaining in office. Except, however, if
the vacant office was held by a director elected by a voting group of shareholders, only the
holders of shares of that voting group are entitled to vote to fill the vacancy if it is filled by
the shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;A vacancy that will occur at a specific later date by reason of a resignation effective at
a later date may be filled before the vacancy occurs. However, the new director may not take
office until the vacancy occurs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If at any time by reason of death or resignation or other cause, the Corporation has no
directors in office, any officer or any shareholder may call a special meeting of shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.07 <U>Removal</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The shareholders may remove one or more directors with or without cause unless the
articles of incorporation provide that directors may be removed only for cause. If a director is
elected by a voting group of shareholders, only the shareholders of that voting group may
participate in the vote to remove the director. If less than the entire board is to be removed, a
director shall not be removed if the number of votes sufficient to elect the director under
cumulative voting is voted against the director&#146;s removal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;A director may be removed by the shareholders only at a meeting, and the meeting notice
shall state that the purpose or one of the purposes of the meeting is removal of the director.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.08 <U>Place of Meeting</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The board of directors may hold its meetings within or without the State of Arizona at
such place or places as the board of directors may from time to time appoint, or as may be
designated in the notice calling the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Meetings may be held by means of conference telephone or similar communications equipment
by means of which all persons participating in the meeting can simultaneously hear each other
during the meeting, and participation in such a meeting shall constitute presence in person at such
meeting.
</DIV>

<P align="center" style="font-size: 10pt">6
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.09 <U>Regular Meeting</U>. Within thirty (30)&nbsp;days after each annual election of
directors or other meeting at which the entire board of directors is elected, the newly elected
board of directors shall meet for the purpose of organization, for the election of such officers as
they wish to consider at the time and for the transaction of any other business. Other regular
meetings of the board of directors shall be held at such times and places as shall be designated
from time to time by resolution of the board of directors. If the date fixed for any regular
meeting is a legal holiday under the laws of the place where such meeting is to be held, then the
meeting shall be held on the next succeeding business day, or at such other time as may be
determined by resolution of the board of directors. At regular meetings, the directors shall
transact such business as may properly be brought before the meeting. Notice of regular meetings
need not be given.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.10 <U>Special Meetings</U>. Special meetings of the board of directors shall be
held whenever called by the chair of the board, the executive chairman or two or more of the
directors. Notice of each such meeting shall be given to each director by telephone or to writing
at least twenty-four (24)&nbsp;hours (in the case of notice by telephone) or forty-eight (48)&nbsp;hours (in
the case of notice by telegram) or three (3)&nbsp;days (in the case of notice by mail) before the time
at which the meeting is to be held. Every such notice shall state the date, time and place of the
meeting, but need not describe the purpose of the meeting unless required by the articles of
incorporation, these bylaws or provided by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.11 <U>Quorum, Manner of Acting, Adjournment, and Action Without Meeting</U>. A
majority of the directors in office immediately before the meeting begins shall constitute a quorum
for the transaction of business. Except as otherwise specified in the articles of incorporation or
these bylaws or provided by law, the acts of a majority of the directors present at a meeting at
which a quorum is present shall be the acts of the board of directors. The directors shall act
only as a board and the individual directors shall have no power as such, provided, however, that
any action that may be taken at a meeting of the board or of a committee may be taken without a
meeting if all directors or committee members, as the case may be, consent thereto in writing.
Such consent shall have the same effect as a unanimous meeting vote, and is effective when the last
director signs the consent, unless the consent specifies a different effective date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.12 <U>Committees</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The board of directors may create one or more committees and may appoint members of the
board of directors to serve on them. Each committee member shall serve at the pleasure of the
board of directors. The creation of committees, the designation of authority of committees, the
dissolution of committees and the appointment and removal of members of committees shall be
approved by the greater of (i)&nbsp;a majority of all of the directors in office when the action is
taken and (ii)&nbsp;a majority of the directors present at a meeting at which a quorum is present. The
board of directors may designate one or more directors as alternate members of any committee, who
may replace any absent member at any meeting of the committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as otherwise provided in this Section, each committee shall have and exercise all
or any of the authority of the board of directors in the management of the business and affairs of
the Corporation, as provided in a resolution of the board of directors.
</DIV>

<P align="center" style="font-size: 10pt">7
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;No committee of the board of directors shall have the authority of the board of directors
with respect to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(i)&nbsp;Authorizing distributions;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(ii)&nbsp;Approving or submitting to shareholders any action that requires
shareholder approval;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(iii)&nbsp;Filling vacancies on the board of directors or on any of its
committees;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(iv)&nbsp;Amending the articles of incorporation;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(v)&nbsp;Adopting, amending or repealing bylaws;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(vi)&nbsp;Approving a plan of merger not requiring shareholder approval;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(vii)&nbsp;Authorizing or approving reacquisition of the Corporation&#146;s shares,
except according to a formula or method prescribed by the board of
directors;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(viii)&nbsp;Authorizing or approving the issuance, sale or contract for sale of
shares or determining the designation and relative rights, preferences and
limitations of a class or series of shares, except according to a formula or
method specifically prescribed by the board of directors; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(ix)&nbsp;Fixing the compensation of directors for serving on the board of
directors or on any committee of the board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Sections&nbsp;3.08, 3.10, 3.11 and 3.13 shall be applicable to committees of the board of
directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.13 <U>Compensation</U>. Directors, and member of any committee of the board of
directors, shall be entitled to such reasonable compensation for their services as directors and
members of any such committee as may be fixed from time to time by resolution of the board of
directors, and also shall be entitled to reimbursement for any reasonable expenses incurred in
attending such meetings. Any director or member of any committee of the board of directors
receiving compensation under these provisions shall not be barred from serving the Corporation in
any other capacity and receiving reasonable compensation for such other services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.14 <U>Dividends</U>. Except as limited by law and the articles of incorporation,
the board of directors shall have full power to determine whether any, and, if so, what part, of
the funds legally available for the payment of dividends shall be declared in dividends and paid to
the shareholders of the Corporation. The board of directors may fix a sum that may be set aside
for working capital or as a reserve for any proper purpose, and from time to time may increase,
diminish or vary such fund.
</DIV>

<P align="center" style="font-size: 10pt">8
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.15 <U>Minutes</U>. The Corporation shall keep minutes of the proceedings of its
board of directors and committees thereof;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.16 <U>Notice</U>. A director may waive any notice required by the BCA, the
articles of incorporation or these bylaws before or after the date and time stated in the Notice.
Except as described below, the waiver shall be in writing, signed by the director entitled to
notice and filed with the minutes or corporate records. A director&#146;s attendance at or
participation in a meeting waives any required notice to him or her of the meeting unless the
director at the beginning of the meeting or promptly on his or her arrival objects to holding the
meeting or transacting business at the meeting and does not thereafter vote for or assent to action
taken at the meeting.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE IV</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>Notice &#151; Waivers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.01 <U>Notice, What Constitutes</U>. Whenever any written notice to any person is
required by the articles of incorporation, these bylaws, or law, it may be given to such person
either personally or by sending a copy thereof through the mail to his or her address appearing on
the books of the Corporation, or supplied by him or her to the Corporation for the purpose of
notice. If the notice is sent by mail it shall be deemed to have been given to the person entitled
thereto when deposited in the United States mail.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.02 <U>Waiver of Notice</U>. Whenever any notice is required to be given to any
shareholder or director by the articles of incorporation, these bylaws, or law, a waiver of notice
in writing signed by the person or persons entitled to such notice, whether before or after the
time stated therein, shall be equivalent to the giving of such notice. Written waivers shall be
placed with the minutes of the meeting or in the corporate records.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE V</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.01 <U>Number, Qualifications and Designation</U>. The officers of the Corporation
shall be as designated by resolution of the board of directors. Any two or more offices may be
held by the same person. Officers may, but need not, be directors or shareholders of the
Corporation. The board of directors may elect from among the members of the board a chair of the
board and a vice chair of the board, who shall be considered officers of the Corporation unless the
board specifically determines otherwise at the time of election.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.02 <U>Election and Term of Office</U>. The officers of the Corporation, except
those elected by delegated authority pursuant to Section&nbsp;5.03 hereof, shall be elected by the board
of directors, and each such officer shall hold office until such officer&#146;s successor shall have
been duly elected and qualified, or until such officer&#146;s death, resignation or removal. Election
or appointment of an officer shall not itself create contract rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.03 <U>Subordinate Officers</U>. The board of directors from time to time may elect
such other officers as the business of the Corporation may require, including, without
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">limitation, one or more vice presidents, one or more assistant secretaries and one or more
assistant treasurers, each of whom shall hold office for such period, have such authority and
perform such duties as are provided in these bylaws, or as the board of directors from time to time
may determine. The directors may delegate to any officer or committee the power to elect
subordinate officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.04 <U>Resignations</U>. An officer may resign at any time by delivering written
notice to the board of directors, or to the executive chairman, president or the secretary of the
Corporation. Any resignation shall be effective when the notice is delivered, unless the notice
specifies a later effective date or event. If a resignation is made effective at a later date or
event and the Corporation accepts the future effective date, the board of directors may fill the
pending vacancy before the effective date if the board of directors provides that the successor
does not take office until the effective date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.05 <U>Removal</U>. Any officer of the Corporation may be removed by the board of
directors with or without cause. Such removal shall not affect the contract rights, if any, of the
person so removed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.06 <U>Vacancies</U>. A vacancy in any office because of death, resignation,
removal, disqualification or any other cause shall be filled by the board of directors or by the
officer or committee to which the power to fill such office has been delegated pursuant to Section
5.03 hereof, as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.07 <U>General Powers</U>. All officers of the Corporation, as between themselves
and the Corporation, shall have such authority and perform such duties in the management of the
Corporation as may be provided in these bylaws, or as may be determined by resolution of directors
not inconsistent with these bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.08 <U>The Chair and Vice Chair of the Board</U>. The chair of the board, or in the
chair&#146;s absence, the vice chair of the board, shall preside at all meetings of the shareholders and
the board of directors, and shall perform such other duties as may from time to time be requested
by the board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.09 <U>The Executive Chairman</U>. The executive chairman shall report directly to
the board of directors, shall be responsible for the overall operation of the Corporation, and
shall perform such other duties as from time to time may be assigned by the board of directors.
The executive chairman shall have the authority to sign, execute, and acknowledge, in the name of
the Corporation, deeds, mortgages, bonds, contracts or other proper instruments, except in cases
where the board of directors or these bylaws delegate to, or authorize the signing and execution
thereof by, some other officer or agent of the Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.10 <U>The Chief Executive Officer; President</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The board of directors may designate a chief executive officer who shall perform such
duties as from time to time may be requested by the board of directors. The chief executive
officer shall report to the executive chairman.
</DIV>

<P align="center" style="font-size: 10pt">10
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The president shall report directly to the executive chairman and shall have general
supervision over the business and operations of the Corporation with respect to driver and team
relationships, track relationships and other NASCAR relations, provided that the president shall
report to the executive chairman regarding any material financial commitments or other material
contractual arrangements. Subject to the foregoing, the president shall have the authority to
sign, execute, and acknowledge, in the name of the Corporation, deeds, mortgages, bonds, contracts
or other proper instruments, except in cases where the board of directors or these bylaws delegate
to, or authorize the signing and execution thereof by, some other officer or agent of the
Corporation. In general, the president shall perform all duties incident to the office of the
president, and such other duties as from time to time may be assigned by the board of directors or
the executive chairman.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.11 <U>The Vice Presidents</U>. Vice presidents shall perform all duties incident
to the office of vice president and such other duties as from time to time may be assigned to them
by the board of directors or the executive chairman. The vice presidents, in the order designated
by the board of directors, shall perform the duties of the president in the president&#146;s absence or
disability. Notwithstanding the foregoing, those individuals who are appointed vice president of a
certain area or department, such as vice president of marketing, shall perform only those duties
incident to such area or department, and such other duties as from time to time may be assigned to
them by the board of directors or the president.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.12 <U>The Secretary</U>. The secretary or an assistant secretary shall, to the
extent possible, (a)&nbsp;attend all meetings of the shareholders and the board of directors, (b)&nbsp;record
all the votes of the shareholders and the directors and prepare the minutes of the meetings of the
shareholders, the board of directors and committees of the board in a book or books to be kept for
that purpose, (c)&nbsp;see that notices are given and records and reports are properly kept and filed by
the Corporation as required by law, (d)&nbsp;authenticate records of the Corporation, and, in general,
(e)&nbsp;perform all duties incident to the office of secretary, and such other duties as from time to
time may be assigned by the board of directors or the executive chairman.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.13 <U>The Treasurer</U>. The treasurer or an assistant treasurer shall (a)&nbsp;have or
provide for the custody of the funds or other property of the Corporation and keep a separate book
account of the same, (b)&nbsp;collect and receive or provide for the collection and receipts of monies
earned by or in any manner due to or received by the Corporation, (c)&nbsp;deposit all funds in his or
her custody as treasurer in such banks or other places of deposit as the board of directors from
time to time may designate, (d)&nbsp;whenever so required by the board of directors, render an
accounting showing his or her transactions as treasurer and the financial condition of the
Corporation, and, (e)&nbsp;in general, (f)&nbsp;discharge such other duties as from time to time may be
assigned by the board of directors or the executive chairman.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.14 <U>Officers&#146; Bonds</U>. Any officer shall give a bond for the faithful
discharge of such officer&#146;s duties in such sum, if any, and with such surety or sureties, as the
board of directors shall require.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.15 <U>Salaries</U>. The salaries of the officers elected by the board of directors
may be fixed from time to time by the board of directors or by such officer as may be designated by
resolution of the board. The salaries or other compensation of any other officers,
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">employees and other agents may be fixed from time to time by the officer or committee to which
the power to elect such officers or to retain or appoint such employees or other agents has been
delegated pursuant to Section&nbsp;5.03 hereof. No officer shall be prevented from receiving such
salary or other compensation by reason of the fact that such officer also is a director of the
Corporation.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VI</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.01 <U>Issuance</U>. The interest of each shareholder of the Corporation may be
evidenced, but need not be represented, by certificates for shares of stock. All share
certificates of the Corporation shall be signed either manually or in facsimile by one or more
officers of the Corporation designated in the articles of incorporation or by the board of
directors, and may bear the corporate seal, which may be a facsimile, engraved or printed. If a
person who signed either manually or in facsimile a share certificate no longer holds office when
the certificate is issued, the certificate is nonetheless valid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.02 <U>Shares Without Certificates</U>. Unless the articles of incorporation or
these bylaws provide otherwise, the board of directors of the Corporation may authorize the
issuance of some or all of the shares of any or all of its classes or series without certificates.
Notwithstanding such authorization by the board of directors, every holder of uncertificated shares
is entitled to receive a certificate that complies with the requirements in the BCA, on request to
the Corporation. The authorization does not affect shares already represented by certificates
until such certificates are surrendered to the Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.03 <U>Subscriptions for Shares</U>. The board of directors may determine the
payment terms of subscriptions of shares, unless the subscription agreement specifies them. Any
call made by the board of directors for payment on subscriptions shall be uniform as far as
practicable as to all shares of the same class or series, unless the subscription agreement
specifies otherwise. A subscription for shares, whether entered into before or after
incorporation, is not enforceable unless it is in writing and signed by the party to be charged or
its agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.04 <U>Transfers</U>. Transfers of shares of stock of the Corporation by the
registered owner thereof, or by his or her duly authorized attorney, shall be made on the books of
the Corporation on surrender of the certificate or certificates, if any, for such shares properly
endorsed and with all taxes thereon paid. No transfer shall be made that is inconsistent with the
provisions of the Uniform Commercial Code as adopted in Arizona.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.05 <U>Share Certificates; Share Record Books</U>. Certificates for shares of the
Corporation, if any, shall be in such form as provided by law and approved by the board of
directors. The share record books and the blank share certificate books shall be kept by the
secretary or by any agency designated by the board of directors for that purpose. The Corporation
or an agent shall maintain a record of its shareholders in a form that permits preparation of a
list of the names and addresses of all shareholders and in alphabetical order by class of shares
showing the number and class of shares held by each. Every certificate
</DIV>

<P align="center" style="font-size: 10pt">12
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">exchanged or returned to the Corporation shall be marked &#147;Cancelled,&#148; with the date of
cancellation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.06 <U>Lost, Destroyed, Mutilated or Stolen Certificates</U>. The holder of any
certificates representing shares of stock of the Corporation shall immediately notify the
Corporation of any lost, destruction, mutilation or theft of the certificate therefor, and the
board of directors may, in its discretion, cause a new certificate or certificates to be issued to
such holder in case of mutilation of the certificate, upon the surrender of the mutilated
certificate, or, in case of loss, destruction or theft of the certificate, upon satisfactory proof
of such loss, destruction or theft, and, if the board of directors shall so determine, the
submission of a properly executed lost security affidavit and indemnity agreement, or the deposit
of a bond in such form and in such sum, and with such surety or sureties, as the board of directors
may direct.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.07 <U>Transfer Agent and Registrar</U>. The board of directors may appoint one or
more transfer agents or transfer clerks and one or more registrars, and may require all
certificates for shares to bear the signature or signatures of any of them.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VII</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>Miscellaneous</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7.01 <U>Corporate Seal</U>. The Corporation may have a corporate seal in the form of
a circle containing the name of the Corporation, the year of incorporation and such other details
as may be approved by the board of directors. Nothing in these bylaws shall require the impression
of a corporate seal to establish the validity of any document executed on behalf of the
Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7.02 <U>Checks</U>. All checks, notes, bills of exchange or other orders in writing
shall be signed by such person or persons as the board of directors from time to time may
designate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7.03 <U>Contracts</U>. The board of directors may authorize any officer or officers,
agent or agents to enter into any contract or to execute or deliver any instrument on behalf of the
Corporation, and such authority may be general or confined to specific instances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7.04 <U>Deposits</U>. All funds of the Corporation shall be deposited from time to
time to the credit of the Corporation in such banks, trust companies, or other depositories as the
board of directors may approve or designate, and all such funds shall be withdrawn only upon checks
signed by such one or more officers or employees as the board of directors from time to time shall
determine.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7.05 <U>Financial Statements</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Corporation shall furnish to the shareholders annual financial statements of the
Corporation (and, if applicable, its subsidiaries) that include a balance sheet as of the end of
the Corporation&#146;s fiscal year, an income statement for the year then ended and a statement of
changes in shareholders&#146; equity for the year then ended, unless that information appears elsewhere
in the financial statements. Such financial statements shall be prepared in
</DIV>

<P align="center" style="font-size: 10pt">13
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">accordance with generally accepted accounting principles if financial statements are prepared
for the Corporation on that basis. If such financial statements are reported on by a certified
public accountant, such report shall accompany such financial statements. If such financial
statements are not reported on by a certified public accountant, such financial statements shall be
accompanied by a statement of the executive chairman, president or the person responsible for the
Corporation&#146;s accounting records.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(i)&nbsp;Stating that person&#146;s reasonable belief whether such financial
statements were prepared on the basis of generally accepted accounting
principles and, if not, describing the bases of preparation; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(ii)&nbsp;Describing any respects in which such financial statements were not
prepared on a basis of accounting consistent with the prior years&#146; financial
statements.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Such financial statements shall be mailed to each shareholder within one hundred and twenty (120)
days after the end of the Corporation&#146;s fiscal year. On written request from a shareholder, the
Corporation shall mail that shareholder the latest annual financial statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If the Corporation indemnifies or advances expenses to a director pursuant to the BCA, the
Corporation shall report the indemnification or advance in writing to the shareholders with or
before the annual financial statements required by Section&nbsp;7.05(a) above. Failure to report under
this section does not invalidate otherwise valid indemnification.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7.06 <U>Corporate Records</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;There shall be kept at the Corporation&#146;s known place of business or at the office of an
agent an original or duplicate record of:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(i)&nbsp;The articles of incorporation (as amended);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(ii)&nbsp;The bylaws (as amended);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(iii)&nbsp;Resolutions adopted by the board of directors creating one or more
classes or series of shares and fixing their relative rights, preferences
and limitations, if shares issued pursuant to those resolutions are
outstanding;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(iv)&nbsp;Minutes of all shareholders&#146; meetings and records of all action taken
by shareholders without a meeting, for the past three years;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(v)&nbsp;All written communication to shareholders generally within the past
three years, including financial statements furnished within such period;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(vi)&nbsp;A list of the names and business addresses of the Corporation&#146;s current
directors and officers;
</DIV>

<P align="center" style="font-size: 10pt">14
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(vii)&nbsp;The most recent annual report delivered to the Arizona Corporation
Commission; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(viii)&nbsp;Any agreement among shareholders pursuant to Section&nbsp;10-732 of the
BCA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Corporation shall maintain appropriate accounting records.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;All corporate records shall be in written form, or another form capable of conversion into
written form within a reasonable period of time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Any shareholder who shall have been a holder of record of shares or of a voting trust
beneficial interest therefor at least six (6)&nbsp;months immediately preceding a demand, or will be the
holder of record of, or the holder of record of a voting trust beneficial interest for, at least
five percent (5%) of all the outstanding shares of the Corporation, upon five (5)&nbsp;business days&#146;
written demand directed to the Corporation, is entitled to inspect and copy, during regular
business hours, at the Corporation&#146;s principal office, the Corporation&#146;s books and records set
forth in section 8.06(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Any shareholder who shall have been a holder of record of shares or of a voting trust
beneficial interest therefor at least six (6)&nbsp;months immediately preceding its demand, or will be
the holder of record of, or the holder of record of a voting trust beneficial interest for, at
least five percent (5%) of all the outstanding shares of the Corporation, upon five (5)&nbsp;business
days&#146; written demand directed to the Corporation, is entitled to inspect and copy, during regular
business hours, at the principal office of the Corporation, the following books and records of the
Corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(i)&nbsp;Excerpts from minutes of any meeting of the board of directors, records
of any action of committees, minutes of any shareholders&#146; meetings and
records of action taken by the shareholders or board of directors without a
meeting, to the extent not subject to inspection in accordance with section
8.06(e);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(ii)&nbsp;Accounting records of the Corporation;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(iii)&nbsp;The record of shareholders; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(iv)&nbsp;The Corporation&#146;s most recent financial statements showing in
reasonable detail its assets and liabilities and the results of its
operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If such shareholder&#146;s demand is made in good faith and for a proper purpose, such shareholder
describes with reasonable particularity its purpose and the records it desires to inspect and the
records are directly connected with the shareholder&#146;s purpose.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;A shareholder&#146;s agent or attorney shall have the same inspection and copying rights as the
shareholder he or she represents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;The Corporation may impose a reasonable charge to cover the costs of
</DIV>

<P align="center" style="font-size: 10pt">15
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">labor and material for copies of documents provided to such shareholder, which charge shall
not exceed the estimated cost of production or reproduction of the records.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7.07 <U>Voting Securities Held by the Corporation</U>. Unless otherwise ordered by
the board of directors, the executive chairman shall have full power and authority on behalf of the
Corporation to attend and at act and to vote at any meeting of security holders of other
corporations to which the Corporation may hold securities. At such meeting the executive chairman
shall possess and may exercise any and all rights and powers incident to the ownership of such
securities which the Corporation might have possessed and exercised if it had been present. The
board of directors from time to time may confer similar powers upon any other person or persons.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7.08 <U>Amendment of Bylaws</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as may otherwise be provided in the articles of incorporation or the BCA these
bylaws may be amended or repealed by the board of directors of the Corporation at any regular or
special meeting of directors, subject to the shareholders, in amending or repealing a particular
bylaw expressly providing that the board of directors may not amend or repeal that bylaw. The
shareholders of the Corporation may amend or repeal these bylaws even though the bylaws may also be
amended or repealed by the board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Bylaw provisions that require super majority voting to effectuate shareholder or director
action shall only be amended in accordance with Sections&nbsp;10-1021 and 10-1022 of the BCA.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CERTIFICATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I hereby certify that the foregoing bylaws were duly adopted by the board of directors of the
Corporation as of the 22nd day of August.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
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    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
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    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

<TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/
David Riddiford</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">David Riddiford, Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">16
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<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>p71128exv10w1.htm
<DESCRIPTION>EX-10.1
<TEXT>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;10.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EMPLOYMENT AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employment Agreement effective as of the 15th day of August, 2005, by and between Action
Performance Companies, Inc., an Arizona corporation (&#147;Employer&#148;) and Herbert M. Baum
(&#147;Executive&#148;). For purposes of paragraphs 8, 9, and 10 of this Agreement, the term &#147;Employer&#148;
shall include each of Employer&#146;s subsidiaries and operating divisions.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WITNESSETH:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employer desires to employ Executive, and Executive desires to accept such employment, all on
the terms and conditions hereinafter set forth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the premises and of the mutual covenants set forth in this
Agreement, the parties hereto agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.&nbsp;Position and Duties</B>. Executive shall be employed as the Executive Chairman of Employer and
shall report only to the Board of Directors of Employer (the &#147;Board&#148;). It is anticipated that
Executive will have primary responsibility for: (1)&nbsp;dealing with the financial community, (2)
analyzing strategic alternatives, and (3)&nbsp;supervising the management team. Executive shall serve
Employer faithfully, loyally, honestly, and to the best of his ability. Executive shall spend the
equivalent of one week per month at Employer facilities and will be available daily from his
residence or other location during regular business hours for consultation with other senior
executives. This Agreement, however, shall not preclude Executive from (a)&nbsp;serving on the board of
directors of not more than five other companies (that do not compete with Employer), (b)&nbsp;serve on
the governing body of a reasonable number of trade associations or charitable organizations, (c)
engaging in charitable activities and community affairs, and (d)&nbsp;managing his personal investments
and affairs, provided that such activities do not conflict or materially interfere with the
effective discharge of his duties and responsibilities to Employer and to the extent Employer does
not reasonably object to any service by Executive on behalf of any such third party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.&nbsp;Term of Employment</B>. The term of Executive&#146;s employment hereunder shall commence on the
date hereof and shall continue until December&nbsp;31, 2007 (the &#147;Initial Term&#148;) and from year to year
thereafter (each a &#147;Renewal Term&#148;), unless and until terminated by either party giving written
notice to the other not less than sixty (60)&nbsp;days prior to the end of the then current term, unless
earlier terminated under the terms of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.&nbsp;Compensation and Other Benefits</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;Base Salary</B>. Employer shall pay to Executive a base salary at a rate of One Hundred
Eighty Thousand Dollars ($180,000) per annum to be paid in equal monthly installments, or in such
other periodic installments upon which Employer and Executive shall mutually agree. On at least an
annual basis, the Compensation Committee of the Board shall review Executive&#146;s base salary and may
increase but not decrease Executive&#146;s base salary in the committee&#146;s discretion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;Stock Options</B>. Employer will grant to Executive options to acquire 100,000 shares of
Employer&#146;s common stock at an exercise price equal to the closing market
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">price of Action Performance Companies, Inc. on the effective date of this Agreement. Such
option grant will be subject to the specific terms and conditions with respect to vesting and other
matters as set forth in a separate stock option agreement to be entered into between Employer and
Executive.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c)&nbsp;Benefit Plans</B>. Executive shall be entitled to participate in any benefit plans maintained
by Employer, including, but not limited to, retirement plans, disability plans, life insurance
plans, and health and dental plans available to other executive employees of Employer, subject to
any restrictions, including waiting periods, specified in the plans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d)&nbsp;Other Benefits</B>. Executive shall also receive (i)&nbsp;reimbursement for reasonable annual tax
and financial consulting fees, (ii)&nbsp;reimbursement for the costs of an annual physical by the doctor
of his choice, and (iii)&nbsp;reimbursement for reasonable legal and accounting fees and expenses
incurred by Executive in connection with this Agreement, all of which shall be subject to a gross
up, which means that Executive will receive an additional payment in an amount such that after
Executive&#146;s payment of taxes on that additional payment, a sufficient sum remains to pay
Executive&#146;s tax liability resulting from such reimbursement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(e)&nbsp;Vacations</B>. Executive shall also be entitled to four (4)&nbsp;weeks of paid vacation each
calendar year, with such vacations to be scheduled and taken by Executive in his discretion,
provided no such vacation shall interfere with the performance of Executive&#146;s duties hereunder and
no unused vacation may be carried over to a succeeding calendar year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(f)&nbsp;Business Expenses</B>. Employer shall reimburse Executive for any and all necessary,
customary, and usual expenses, properly receipted in accordance with Employer&#146;s policies, incurred
by Executive on behalf of Employer. If Executive is required to travel in the performance of his
duties under this Agreement, Executive shall be entitled to use any plane maintained by Employer or
to fly first class on commercial flights at his election at Employer&#146;s cost. Employer shall also
reimburse Executive for hotels and meals relating to his service to Employer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(g)&nbsp;Signing Bonus</B>. Upon execution of this Agreement by Employee and Executive, Executive will
be entitled to a signing bonus of $7,000.00, less applicable withholding taxes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.&nbsp;Termination by Employer</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;Termination for Cause</B>. Employer may terminate Executive&#146;s employment under this Agreement
for Cause at any time upon written notice to Executive. For purposes of this Agreement, &#147;Cause&#148;
shall be limited to discharge resulting from a determination by the Board that Executive (i)&nbsp;has
been convicted of a felony, involving dishonesty, fraud, theft, or embezzlement; (ii)&nbsp;has
repeatedly failed or refused, after written notice from Employer along with failure of Executive to
cure within thirty (30)&nbsp;days of receipt of such notice, in a material respect to follow reasonable
policies or directives established by Employer; (iii)&nbsp;has willfully and persistently failed, after
written notice from Employer within thirty (30)&nbsp;days of receipt of such notice, to attend to
material duties or obligations imposed upon him under this Agreement; or (iv)&nbsp;has performed an act
or failed to act for which if he were prosecuted and convicted, would
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">constitute a felony involving One Thousand Dollars ($1,000) or more of money or property of
Employer. The existence of &#147;Cause&#148; shall be determined by the Board acting in good faith after
prior notice to Executive and after providing Executive with an opportunity to be heard. If
Executive&#146;s employment is terminated for Cause, Executive shall receive no Severance Benefits
pursuant to paragraph 7.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;Termination without Cause</B>. Employer also may terminate Executive&#146;s employment under this
Agreement without Cause at any time upon written notice to Executive. In the event Executive&#146;s
employment is terminated by Employer without Cause, Executive shall receive the Severance Benefits
pursuant to paragraph 7.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.&nbsp;Termination by Executive</B>. Executive may terminate his employment under this Agreement with
or without &#147;Good Reason&#148; in accordance with the provisions of this paragraph 5.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;Termination for Good Reason</B>. Executive may terminate his employment under this Agreement
for &#147;Good Reason&#148; by giving written notice to Employer within sixty (60)&nbsp;days, or such longer
period as may be agreed to in writing by Employer, of Executive&#146;s receipt of notice of the
occurrence of any event constituting &#147;Good Reason,&#148; as described below. Executive shall have &#147;Good
Reason&#148; to terminate his employment under this Agreement upon the occurrence of any of the
following events:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Any reduction in Executive&#146;s status, duties, authority, or compensation;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Executive is demoted to a position of less stature or importance within Employer than the
position described in paragraph 1;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;Executive is assigned duties inconsistent with the positions, duties, responsibilities,
or status of the Executive Chairman of Employer;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;Upon an event of a &#147;Change of Control&#148; of Employer, provided that a change of control
shall not be considered to have taken place for purposes of this Agreement in the event the Change
of Control shall have been specifically approved by the Board and the provisions of this Agreement
remain in full force and effect as to Executive and Executive suffers no reduction in Executive&#146;s
status, duties, authority, or compensation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;Change of Control</B>. For the purposes of this paragraph 5, the term &#147;Change in Control&#148; of
Employer shall mean a Change in Control of a nature that would be required to be reported in
response to Item 6(e) of Schedule&nbsp;14A of Regulation&nbsp;14A promulgated under the Securities Exchange
Act of 1934 as in effect on the date of this Agreement or, if Item 6(e) is no longer in effect, any
regulations issued by the Securities and Exchange Commission pursuant to the Securities Exchange
Act of 1934 that serve similar purposes; provided that, without limitation, such a Change in
Control shall be deemed to have occurred if and when
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;any person (as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange
Act of 1934) becomes the &#147;beneficial owner&#148; (as defined in Rule&nbsp;13d-3 under the Securities Exchange
Act of 1934) directly or indirectly of equity securities of
</DIV>

<P align="center" style="font-size: 10pt">-3-
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Employer representing thirty percent (30%) or more of the combined voting power of Employer&#146;s
then-outstanding equity securities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;during the term of this Agreement, individuals who, at the beginning of such period,
constituted the Board of Directors of Employer (the &#147;Original Directors&#148;), cease for any reason to
constitute at least a majority thereof unless the election or nomination for election of each new
director was approved (an &#147;Approved Director&#148;) by the unanimous vote of the Board constituted
entirely of Existing Directors and/or Approved Directors;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;a tender offer or exchange offer is made whereby the effect of such offer is to take
over and control Employer, and such offer is consummated for the equity securities of Employer
representing twenty percent (20%) or more of the combined voting power of Employer&#146;s
then-outstanding voting securities;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;Employer is merged, consolidated, or enters into a reorganization transaction with
another person and, as the result of such merger, consolidation, or reorganization, less than 75
percent (75%) of the outstanding equity securities of the surviving, or resulting person shall then
be owned in the aggregate by the former stockholders of Employer; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;Employer transfers substantially all of its assets to another person or entity which is
not a wholly owned subsidiary of Employer.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If Executive terminates this Agreement and his employment for Good Reason, Executive shall be
entitled to receive Severance Benefits pursuant to paragraph 7.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c)&nbsp;Termination Without Good Reason</B>. Executive also may terminate his employment without Good
Reason at any time by giving written notice to Employer. If Executive terminates his employment
under this Agreement without Good Reason, Executive shall not receive Severance Benefits pursuant
to paragraph 7.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.&nbsp;Death or Disability</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;Death</B>. Executive&#146;s employment shall terminate automatically on Executive&#146;s death. Any
compensation or other amounts due to Executive for services rendered prior to his death shall be
paid to Executive&#146;s surviving spouse, or if Executive does not leave a surviving spouse, to
Executive&#146;s estate. No other benefits shall be payable to Executive&#146;s heirs pursuant to this
Agreement, but amounts may be payable pursuant to any life insurance or other benefit plans
maintained by Employer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;Disability</B>. In the event Executive becomes &#147;Disabled,&#148; Executive&#146;s employment hereunder
and Employer&#146;s obligation to pay Executive&#146;s Base Salary shall continue for a period of twelve (12)
months from the date of Executive&#146;s initial absence due to such Disability and, in the event
Executive becomes &#147;Disabled&#148; during the first year of his employment with Employer. Executive
shall also receive any additional compensation to which Executive may be entitled pursuant to
paragraph 3 (less any amounts payable to Executive pursuant to any long-term disability insurance
policy paid for by Employer). If at the end of the
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">twelve (12)&nbsp;month period, Executive has not recovered from such Disability, Executive&#146;s
employment hereunder shall automatically cease and terminate. Executive shall be considered
&#147;Disabled&#148; or to be suffering from a &#147;Disability&#148; for purposes of this paragraph 6(b) if, in the
judgment of a licensed physician selected by the Board and confirmed by a licensed physician
designated by Executive, and after any reasonable accommodations required by applicable law, he is
unable to perform the essential functions of his position due to a physical or mental impairment,
and such incapacity is expected to continue for a period of at least twelve (12)&nbsp;consecutive months
from the date of the initial absence due to such incapacity. The determination by such physicians
shall be binding and conclusive for all purposes. If the physician selected by the Board and the
physician selected by Executive cannot agree, the two (2)&nbsp;physicians shall select a third (3rd)
physician. The decision of the third (3rd) physician concerning Executive&#146;s Disability then shall
be binding and conclusive on all interested parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.&nbsp;Severance Benefits</B>. If during the Initial Term or any Renewal Term, Executive&#146;s employment
under this Agreement is terminated without Cause by Employer pursuant to paragraph 4(b) prior to
the last day of the Initial Term or any Renewal Term, or if Executive elects to terminate his
employment for Good Reason pursuant to paragraph 5(a), Executive shall receive the &#147;Severance
Benefits&#148; provided by this paragraph. In addition, Executive also shall receive the Severance
Benefits if his employment is terminated due to Disability pursuant to paragraph 6(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;Effective Date</B>. The Severance Benefits shall begin immediately following the effective
date of termination of employment and shall continue to be payable for a period of twenty four
months (24)&nbsp;following the effective date, in all events except as set forth in paragraph 6(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;Benefits</B>. The Executive&#146;s Severance Benefits shall consist of two (2)&nbsp;times the
Executive&#146;s then base salary and bonus compensation. The Company will pay this amount to Executive
in a lump sum, within 10&nbsp;days of termination. Executive&#146;s bonus compensation shall be the greater
of (i)&nbsp;the amount paid to him as bonus or incentive compensation for the prior year, and (ii)&nbsp;an
amount estimated to be due him under any then current bonus program. By way of example, if
Executive was paid a bonus of $100,000 for the prior year, and is estimated to earn a $60,000 bonus
in the year of termination, he would be paid $200,000 as his bonus payout upon termination. The
Severance shall also consist of the continuation for two (2)&nbsp;years of any health, life, disability,
or other insurance benefits that Executive was receiving as of the Change of Control date, but only
to the extent permitted under the policies for such benefits. If a particular insurance benefit
may not be continued for any reason, Employer shall pay to the Executive in a lump sum an amount
estimated in good faith for him to obtain comparable coverage for the two (2)&nbsp;year post-termination
period. Notwithstanding the above, at all times under the terms of this Section&nbsp;7(b), the cash
portion of the Executive&#146;s Severance Benefit shall be paid no later than the date that is two and
one-half months after the end of the later of (i)&nbsp;the Employer&#146;s fiscal year, or (ii)&nbsp;the calendar
year, in which the payments are no longer subject to a substantial risk of forfeiture, as
determined in accordance with the guidance promulgated under Section&nbsp;409A of the Internal Revenue
Code of 1986, as amended (&#147;Code&#148;).
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c)&nbsp;Exceptions to Benefits</B>. If Executive voluntarily terminates this Agreement and his
employment without Good Reason prior to the end of the Initial Term or any Renewal Term, or if
Employer terminates the Agreement and Executive&#146;s employment for Cause, no Severance Benefits shall
be paid to Executive. No Severance Benefits are payable in the event of Executive&#146;s death while in
the active employ of Employer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d)&nbsp;Future Employment</B>. The payment of Severance Benefits shall not be affected by whether
Executive seeks or obtains other employment. Executive shall have no obligation to seek or obtain
other employment, and Executive&#146;s Severance Benefits shall not be impacted by Executive&#146;s failure
to mitigate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.&nbsp;Covenant-Not-to-Compete</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;Interests to be Protected</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<B>Customers</B>. The parties acknowledge that during the term of his employment under this
Agreement, Executive will perform essential services for Employer, its employees, and shareholders,
and for customers of Employer. Therefore, Executive will be given an opportunity to meet, work
with, and develop close working relationships with Employer&#146;s customers on a first-hand basis and
will gain valuable insight as to the customers&#146; operations, personnel, and need for services. In
addition, Executive will be exposed to, have access to, and be required to work with, a
considerable amount of Employer&#146;s Confidential and Proprietary Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;<B>Employees</B>. The parties also expressly recognize and acknowledge that the personnel of
Employer have been trained by, and are valuable to Employer, and that if Employer must hire new
personnel or retrain existing personnel to fill vacancies it will incur substantial expense in
recruiting and training such personnel. The parties expressly recognize that should Executive
compete with Employer in any manner whatsoever, it could seriously impair the goodwill and diminish
the value of Employer&#146;s business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;<B>Extended Duration</B>. The parties acknowledge that this covenant has an extended duration;
however, they agree that this covenant is reasonable and it is necessary for the protection of
Employer, its shareholders and employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;<B>Fair and Reasonable</B>. For these and other reasons, and the fact that there are many other
employment opportunities available to Executive if his employment with Employer should terminate,
the parties are in full and complete agreement that the following restrictive covenants (which
together are referred to as the &#147;Covenant-Not-To-Compete&#148;) are fair and reasonable and are freely,
voluntarily, and knowingly entered into. Further, each party has been given the opportunity to
consult with independent legal counsel before entering into this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;Devotion to Employment</B>. Executive shall devote substantially all his business time and
efforts to the performance of his duties on behalf of Employer during the term of his employment
under this Agreement. During his term of employment, Executive shall not at any time or place or
to any extent whatsoever, either directly or indirectly, without the express written consent of
Employer, engage in any outside employment, or in any activity competitive
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">with or adverse to Employer&#146;s business or affairs, whether alone or as partner, officer,
director, employee, shareholder of any corporation or as a trustee, fiduciary, consultant or other
representative. This is not intended to prohibit Executive from engaging in nonprofessional
activities, such as personal investments or conducting to a reasonable extent private business
affairs, which may include other boards of directors&#146; activity, so long as they do not conflict
with Employer&#146;s business. Participation to a reasonable extent in civic, social, or community
activities is encouraged.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c)&nbsp;Non-Solicitation of Customers</B>. During the term of Executive&#146;s employment with Employer
under this Agreement and for a period of twenty-four (24)&nbsp;months after the termination of
employment with Employer under this Agreement, regardless of who initiates the termination and for
whatever reason, Executive shall not directly or indirectly, for himself, or on behalf of, or in
conjunction with, any other person, company, partnership, corporation, or governmental entity, in
any manner whatsoever, call upon, contact, encourage, handle, or solicit customers of Employer with
whom he has worked as an employee of Employer at any time prior to termination, or at the time of
termination, for the purpose of soliciting or selling such customer the same, similar, or related
services that he provided on behalf of Employer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d)&nbsp;Non-Solicitation of Executives</B>. During the term of Executive&#146;s employment with Employer
under this Agreement and for a period of twenty-four (24)&nbsp;months after the termination of
employment with Employer under this Agreement, regardless of who initiates the termination and for
whatever reason, Executive shall not directly or indirectly, for himself, or on behalf of, or in
conjunction with, any other person, company, partnership, corporation, or governmental entity, seek
to hire, and/or hire any of Employer&#146;s personnel or employees for the purpose of having such
employee engage in services that are the same, similar, or related to the services that such
employee provided for Employer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(e)&nbsp;Competing Business</B>. During the term of Executive&#146;s employment with Employer under this
Agreement and for a period of twenty-four (24)&nbsp;months after the termination of employment with
Employer under this Agreement, regardless of who initiates the termination and for whatever reason,
Executive shall not, directly or indirectly, for himself, or on behalf of, or in conjunction with,
any other person, company, partnership, corporation, or governmental entity, in any manner
whatsoever, engage in the same or similar business as Employer, which would be in direct
competition with any Employer line of business, in any geographical service area where Employer
engaged in business at time of termination. For the purposes of this provision, the term
&#147;competition&#148; shall mean directly or indirectly engaging in or having a substantial interest in a
business or operation which has been, is, or will be, providing the same products provided by
Employer; provided, however the ownership of not more than 5% by Executive of a publicly held
corporation shall not constitute competition which is prohibited by this paragraph 8(e).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(f)&nbsp;Limitation and Judicial Amendment</B>. Notwithstanding any other provision of this Agreement,
the provisions contained in paragraphs 8(c), 8(d), and 8(e) shall not apply for more than twelve
(12)&nbsp;months after Executive no longer receives Severance Benefits under this Agreement. If the
scope of any provision of this Agreement is found by the Court to be too broad to permit
enforcement to its full extent, then such provision shall be enforced to the
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">maximum extent permitted by law. The parties agree that the scope of any provision of this
Agreement may be modified by a judge in any proceeding to enforce this Agreement, so that such
provision can be enforced to the maximum extent permitted by law. If any provision of this
Agreement is found to be invalid or unenforceable for any reason, it shall not affect the validity
of the remaining provisions of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(g)&nbsp;Injunctive Relief, Damages and Forfeiture</B>. Due to the nature of Executive&#146;s position with
Employer, and with full realization that a violation of this Agreement will cause immediate and
irreparable injury and damage, which is not readily measurable, and to protect Employer&#146;s
interests, Executive understands and agrees that in addition to instituting legal proceedings to
recover damages resulting from a breach of this Agreement, Employer may seek to enforce this
Agreement with an action for injunctive relief, to cease or prevent any actual or threatened
violation of this Agreement on the part of Executive.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(h)&nbsp;Survival</B>. The provisions of this paragraph shall survive the termination of Executive&#146;s
employment to the extent necessary to enforce such provisions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.&nbsp;Confidential Information</B>. During the course of his employment under this Agreement,
Executive will become exposed to a substantial amount of confidential and proprietary information,
including, but not limited to, financial information, annual reports, audited and unaudited
financial reports, operational budgets and strategies, methods of operation, customer lists,
strategic plans, business plans, marketing plans and strategies, new business strategies, merger
and acquisition strategies, management systems programs, computer systems, personnel and
compensation information and payroll data, and other such reports, documents, or information
(collectively the &#147;Confidential and Proprietary Information&#148;). In the event his employment is
terminated by either party for any reason, Executive agrees that he will not take with him any
copies of such Confidential and Proprietary Information in any form, format, or manner whatsoever
(including computer print-outs, computer tapes, floppy disks, and CD roms) nor will he disclose the
same in whole or in part to any person or entity, in any manner either directly or indirectly.
Excluded from this Agreement is information that is already disclosed to third parties and is in
the public domain or that Employer consents to be disclosed, with such consent to be in writing.
The provisions of this paragraph shall survive the termination of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.&nbsp;Indemnity by Employer</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;Generally</B>. Unless Executive is covered by an indemnity agreement covering the directors
and executive officers of Employer, Employer shall indemnify Executive to the fullest extent
permitted or required by the laws of the state of Arizona of and from any &#147;Expenses&#148; incurred by
Executive in any &#147;Proceeding.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;Expenses</B>. For purposes of this paragraph 10, &#147;Expenses&#148; shall mean and include all
expense, liability, and loss, including expenses of investigations, judicial or administrative
proceedings or appeals, attorney, accountant and other professional fees and disbursements,
judgments, fines, and amounts paid in settlement.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c)&nbsp;Proceeding</B>. For purposes of this paragraph 10, &#147;Proceeding&#148; shall mean and include any
threatened, pending, or completed action, suit, or proceeding, whether brought in the right of
Employer or otherwise, and whether of a civil, criminal, administrative, or investigative nature,
in which the Executive may be or may have been involved as a party, witness or otherwise, by reason
of the fact that the Executive is or was an officer of Employer or is or was serving at the request
of Employer as a director, officer, employee, or agent of another corporation, partnership, joint
venture, trust, or other enterprise, whether or not serving in such capacity at the time any
liability or expense is incurred for which indemnification may be provided under this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d)&nbsp;Payment of Executive Expenses</B>. Employer shall pay the Expenses incurred by Executive in
any Proceeding in advance of the final disposition of the Proceeding at the written request of
Executive, if Executive (i)&nbsp;furnishes Employer with a written affirmation of Executive&#146;s good faith
belief that he is entitled to indemnification by Employer; and (ii)&nbsp;furnishes Employer with a
written undertaking to repay the advance to the extent that it is ultimately determined that
Executive is not entitled to be indemnified by Employer. Such undertaking shall be an unlimited
general obligation of Executive, but need not be secured. Advances pursuant to this paragraph 10
shall be made no later than twenty (20)&nbsp;days after Employer&#146;s receipt of the affirmation and
undertakings set forth above and shall be made without regard to the Executive&#146;s ability to repay
the amount advanced and without regard to Executive&#146;s ultimate entitlement to indemnification under
this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>11.&nbsp;Miscellaneous</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;Notices</B>. All notices, requests, demands and other communications required or permitted
under this Agreement shall be in writing and shall be deemed to have been duly given upon (a)
personal delivery, (b)&nbsp;transmitter&#146;s confirmation of the receipt of a facsimile or e-mail
transmission, (c)&nbsp;confirmed delivery by a standard overnight carrier, or (d)&nbsp;the expiration of
three business days after the day when mailed via United States Postal Service by certified or
registered mail, return receipt requested, postage prepaid at the following addresses:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;If to Employer:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt">Action Performance Companies, Inc.<BR>
1480 South Hohokam Avenue<BR>
Tempe, Arizona 85281<BR>
Attention: Chief Financial Officer</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;If to Executive:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt">1480 South Hohokam Avenue<BR>
Tempe, Arizona 85281</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Either party may alter the address to which communications are to be sent by giving notice of
such change of address in conformity with the provisions of this paragraph for the giving of
notice.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;Indulgences</B>. Neither any failure nor any delay on the part of either party to exercise
any right, remedy, power, or privilege under this Agreement shall operate as a waiver thereof, nor
shall any single or partial exercise of any right, remedy, power, or privilege preclude any other
or further exercise of the same or of any other right, remedy, power, or privilege, nor shall any
waiver of any right, remedy, power, or privilege with respect to any occurrence be construed as a
waiver of such right, remedy, power, or privilege with respect to any other occurrence.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c)&nbsp;Controlling Law</B>. This Agreement and all questions relating to its validity,
interpretation, performance, and enforcement, shall be governed by and construed in accordance with
the laws of the state of Arizona, notwithstanding any Arizona or other conflict-of-interest
provisions to the contrary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d)&nbsp;Binding Nature of Agreement</B>. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, personal representatives, successors, and
permitted assigns.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(e)&nbsp;Execution in Counterpart</B>. This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original as against any party whose signature appears
thereon, and all of which shall together constitute one and the same instrument. This Agreement
shall become binding when one or more counterparts hereof, individually or taken together, shall
bear the signatures of the parties reflected hereon as the signatories.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(f)&nbsp;Provisions Separable</B>. The provisions of this Agreement are independent of and separable
from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue
of the fact that for any reason any other or others of them may be invalid or unenforceable in
whole or in part.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(g)&nbsp;Entire Agreement</B>. This Agreement contains the entire understanding between the parties
hereto with respect to the subject matter hereof and supersedes all prior and contemporaneous
agreements and understandings, inducements, and conditions, express or implied, oral or written,
except as herein contained. The express terms hereof control and supersede any course of
performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement
may not be modified or amended other than by an agreement in writing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(h)&nbsp;Paragraph&nbsp;Headings</B>. The paragraph headings in this Agreement are for convenience only;
they form no part of this Agreement and shall not affect its interpretation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(i)&nbsp;Number of Days</B>. In computing the number of days for purposes of this Agreement, all days
shall be counted, including Saturdays, Sundays, and holidays; provided, however, that if the final
day of any time period falls on a Saturday, Sunday, or holiday, then the final day shall be deemed
to be the next day which is not a Saturday, Sunday, or holiday.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(j)&nbsp;Successors and Assigns</B>. This Agreement shall inure to the benefit of and be binding upon
the successors and assigns of the parties hereto; provided that because the obligations of
Executive hereunder involve the performance of personal services, such obligations shall not be
delegated by Executive. For purposes of this Agreement, successors and
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">assigns shall include, but not be limited to, any individual, corporation, trust, partnership,
or other entity that acquires a majority of the stock or assets of Employer by sale, merger,
consolidation, liquidation, or other form of transfer. Employer shall require any successor
(whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all of the business and/or assets of Employer to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that Employer would be required to
perform it if no such succession had taken place. Without limiting the foregoing, unless the
context otherwise requires, the term &#147;Employer&#148; includes all subsidiaries of Employer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(k)&nbsp;Code Section&nbsp;409A</B>. If any payments under this Agreement are subject to the provisions of
Code Section&nbsp;409A, it is intended that the Agreement will comply fully with and meet all the
requirements of Code Section&nbsp;409A.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">EMPLOYER:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">ACTION PERFORMANCE COMPANIES, INC.,</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">an Arizona corporation</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ David Riddiford</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">David Riddiford</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">EXECUTIVE:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">/s/ Herbert M. Baum</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Herbert M. Baum</TD>
</TR>
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<P align="center" style="font-size: 10pt">-11-
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