1. 2013 SUMMER SALES MEETING LIGHTING AND ELECTRICAL

2. AGENDA -Lighting Education/ Background -Electrical Education/ Background Connectors Adapters Brake controls Converters T-Connectors -New Products

3. LIGHTING 101 Lighting Market Statical Overview

4. LIGHTING 101 Total Trailer Lighting Market Retail Trailer Lighting Market Source: Industry Estimates Est. Market Size: $478 million (retail $) Est. Market Size: $72.3 million (retail $)

5. LIGHTING 101 What does stop/tail/turn mean? How many lights do I need to use to achieve it? Are they the same as "Tail Lights"? Stop/Tail/Turn is a combination rating meaning a specific light or grouping of lights in an assembly meet the requirements for this named combination. This rating can be achieved using 1 light alone as long as the light source meets the requirements for the specific Why are some Turn Signal Lights Red and others Amber, does it matter which color I use? Yes, the color does matter. While both colors are acceptable for turn signals, the color use is primarily driven by the "Stop" Function. When using a multi- function Stop/Turn light, the color must be Red as required by FMVSS/CMVSS 108 requirements. Amber turn is a European requirement, but is optional in the US and Canada.

6. LIGHTING 101 What are Submersible Lights? Submersible lights purposely allow water to enter the light assembly, however a cushion of air forms when water enters the light and will protect the bulbs and electrical connectivity from damage. This natural phenomenon is known as the "Bell Jar Principle". These lights are ideal for boat trailers and utility trailers that will be submersed in water. What are Waterproof/Sealed Lights? "Waterproof" and "sealed”, mean exactly the same - these lights are completely sealed and will not allow water to enter the inside of the light assembly. Many of our new LED Side/Marker and Tail Lights are completely sealed as to prevent water from damaging the circuit board and components associated with LED Technology.

7. LIGHTING 101 What is the difference between Side Marker & Clearance Lights? Side Marker Lights are mounted on the side of a vehicle and are used to define its length. Clearance Lights are mounted on the front and rear of a vehicle and are used to define its width. What are "PC" Side Marker/Clearance Lights? These lights meet the FMVSS/CMVSS 108 requirements for photometric certification as both Clearance and Side Marker Lights when properly mounted.

8. LIGHTING 101 LEDs produce more light per watt than do incandescent bulbs; this is useful in battery powered or energy-saving devices. LEDs can emit light of an intended color without the use of color filters that traditional lighting methods require. This is more efficient and can lower initial costs. The solid package of an LED can be designed to focus its light. Incandescent and fluorescent sources often require an external reflector to collect light and direct it in a usable manner. When used in applications where dimming is required, LEDs do not change their color tint as the current passing through them is lowered, unlike incandescent lamps, which turn yellow. LEDs, being solid state components, are difficult to damage with external shock. Fluorescent and incandescent bulbs are easily broken if dropped on the ground. LEDs have an extremely long life span. One manufacturer has calculated the ETTF (Estimated Time To Failure) for their LEDs to be between 100,000 and 1,000,000 hours. Fluorescent tubes typically are rated at about 10,000 hours, and incandescent light bulbs at 1,000-2,000 hours. LEDs mostly fail by dimming over time, rather than the abrupt burn-out of incandescent bulbs. LEDs can be very small and are easily populated onto printed circuit boards. All About LED’s

9. ELECTRICAL 101 Source: Estimates based on NPD Group & OEM / Auto Retail Only Est. Market Size: $207 million (retail $) Est. Market Size: $67.3 million (retail $) *REESE also has private label

10. ELECTRICAL 101 CONNECTOR Ground Tail/Marker Left Turn/Brake Right Turn/Brake Surge Brake 4-Flat 5-Flat Blue wire is added and connected to backup on the tow vehicle and the surge brake on the trailer 6-Way Alternate 6- Way Note: the electric brake and auxiliary circuits may be reversed on some trailers Ground Tail/Marker Left Turn/Brake Right Turn/Brake Electric Brake Aux/Backup As shown from Trailer End Electric Brake (S) Pin Electric Brake (A) Pin

11. ELECTRICAL 101 7-Way Blade Note: Wiring diagram to RV Industry Standard As shown from Trailer End Standard in the RV Industry Found on medium to light duty trailers Ground Auxiliary Tail/Marker Electric Brake Battery Left Turn/Brake Right Turn/Brake CONNECTOR Ground Tail/Marker Left Turn/Brake Right Turn/Brake What is a “Wishbone” or “Y” Harness? On light duty small trailers a 4-Flat is the standard connector. Normally the wiring goes down one side, and then crosses at the back to wire the other side. A wishbone harness splits at the front of the trailer and goes down each side. This keeps the wires from hanging down and getting snagged, it is used heavily in the Marine industry where the boat hull hangs between the wheels. 4-Flat Wishbone

12. ELECTRICAL 101 ADAPTER Basic Adapters can only go from a higher number of circuits to a lower number (i.e., 7-Way to 4-Way) 7-Way to 4-Flat 7-Way to 5-Way 7-Way to 6-Way 6-Way to 4-Flat

13. ELECTRICAL 101 ADAPTER 4-Way to 7-Way Premium adapters allow for going from a 4-Way to larger connectors, but require additional wires to be installed. 85343 Dual Port Adapter Note: primary grounding to frame required, 4-flat can not handle load required for additional circuits

14. ELECTRICAL 101 BRAKE CONTROL Used to regulate the power going to the brakes Without a brake control the entire work load is on the vehicle’s brakes and can create an unsafe condition A brake control activates the trailer brakes Why should a circuit breaker be used when wiring a brake controller and not a fuse? If an interment short should happen when driving down the road the circuit breaker will reset itself and your brakes will have power again. Once the fuse blows no power will flow through the circuit until the fuse is changed. Circuit breakers should always be in line with a brake control.

15. ELECTRICAL 101 CONVERTER Why would I need a converter? If you have a vehicle with amber or independent separate turn signals, then a converter is required to convert the 3 wire lighting system to a 2 wire lighting system. What is a Power Module (Converter)? A power module reduces to load on tow vehicles electrical system by supplying electrical power from the battery directly and only using a trace amount of electric from the standard electrical system.

16. ELECTRICAL 101 CONVERTER Why would I need a Power Module? Many of the today’s vehicles contain light gauge wiring and sensitive computer systems. These systems constantly monitor the vehicle’s electrical requirements and advise when there are problems or even shut-off the vehicle if the electric or loads on the wiring is not performing as designed. Can be used on 2- or 3-wire systems

17. ELECTRICAL 101 T-CONNECTOR Allows for quick and easy installation No Cutting, splicing or taping Includes converter where needed Typical Locations Passenger Car SUV Pick-up Trucks

18. NEW PRODUCTS

19. Product Features: Connects into vehicles wiring system Fits many car applications and ball mounts LED lights 2 illumination modes: Back up light Utility light 500 lb. load capacity Mounting hardware included Patent pending Key Benefits: Aids in loading and unloading cargo from vehicle. Illuminates area behind vehicle for increased visibility during activities such as trailer hook up. How it’s Made: Durable, one piece fiber reinforced plastic 2 LED light modules Ergonomic low profile design Corrosion Resistant LIGHTED HITCH STEP Part Number: 7065300 Target Availability: Late Fall 2013 Packaging: 1 per MC Target MSRP: $ 59.95

20. Product Features: Connects into OEM vehicle’s wiring system Corrosion resistant tin plated terminals Includes gasket cover and plug locking feature Weather resistant design Fits many car applications Key Benefits: Ideal for towing a trailer with 7-way blade style connector Easy connection; “plug-in” harness How it’s Made: One piece glass reinforced plastic ergonomic design Stainless steel materials Tin-plated contacts 7-WAY PROFESSIONAL PLUG IN Part Number: 85501 Target Availability: Fall 2013 Packaging: 3 per MC Target MSRP: $19.99 - $24.99

21. Product Features: Connects into OEM vehicle’s wiring system Corrosion resistant tin plated terminals Includes gasket cover and plug locking feature Weather resistant design Fits many car applications Key Benefits: Ideal for towing a trailer with 7-way blade style connector Easy connection; “plug-in” harness Includes mounting bracket and fasteners How it’s Made: One piece glass reinforced plastic ergonomic design Stainless steel materials Tin-plated contacts 7-WAY PROFESSIONAL PLUG IN Part Number: 85502 Target Availability: Fall 2013 Packaging: 3 per MC Target MSRP: $13.99 - $15.99

22. Product Features: Connects into OEM vehicle’s wiring system Corrosion resistant tin plated terminals Includes gasket cover and plug locking feature Weather resistant design Fits many car applications Key Benefits: Ideal for towing a trailer with 7-way blade style connector Easy connection; “plug-in” harness Includes fasteners How it’s Made: One piece glass reinforced plastic ergonomic design Stainless steel materials Tin-plated contacts 7-WAY PROFESSIONAL PLUG IN Part Number: 85503 Target Availability: Fall 2013 Packaging: 3 per MC Target MSRP: $12.99 - $14.99

23. Product Features: 12 inch long cable (Trailer) Protective durable cable jacket Dust cover for enhanced weather resistance and water proofing Corrosion resistant tin plated terminals Heavy duty durable design Key Benefits: Aids in towing a trailer with a 4-way flat style connector 2 mounting holes that secures connector body to any flat surface How it’s Made: PVC insulated Jacket 18 gauge insulated stranded wires PVC molded body Tin plated terminals 4 FLAT PROFESSIONAL Part Number: 85500 (Trailer) Part Number: 85505 (Vehicle) Target Availability: Fall 2013 Packaging: 3 per MC Target MSRP: $4.99 - $7.99

24. Product Features: Various 3D designs for the sports enthusiast Fits 2” receivers Quick & easy installation; snap on patent design No tools required Anti- rattle design Strong, durable construction How it’s Made: Mounting Brackets are made out of fiber reinforced nylon Base is made out of black powder coated aluminum alloy Emblems are made out of anodized aluminum alloy 3D SPORTS HITCH COVERS Part Number: Various Target Availability: Winter 2013 Packaging: Clamshell; 3 per MC Target MSRP: $14.00 – $19.99 86539 86537 86536 86538 86540 86541

25. Product Features: Easy to Install Fits 1.25 in. and 2 in. receivers Long life LED light source Two functioning operation- low illumination with tail lights and high illumination with brake lights Key Benefits: 4-flat connector installed for quick wiring’ just plug in and go Size of cover wont interfere with bumper How it’s Made: Solid state electronics Made with LED embedded circuit boards LIGHTED HITCH COVERS Part Number: TBD Target Availability: Winter 2013 Packaging: 3 per MC Target MSRP: $26.95 - $ 29.95