New Balance Stores New Balance Development Fund *(NBDF) Program & Policy. *(NBDF replaced Coop in 2011)

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New Balance Stres 2012 New Balance Develpment Fund *(NBDF) Prgram & Plicy *(NBDF replaced Cp in 2011) NBDF Objectives The NBDF is designed fr New Balance Sales Representatives t cllabratively plan and invest in custmer specific advertising and r merchandising vehicles which supprt the measurable develpment and grwth f New Balance Ftwear and Apparel. NBDF Accrual Rate 5.0% f previus year net value f all New Balance ftwear and apparel shipments. 2012 NBDF Accrual Expiratin Unused 2012 NBDF advertising funds expire, if nt used by December 31, 2012. Claims fr reimbursement must be submitted within 60 days frm the date f the advertisement/prmtin. Final 2012 claims must be received by Shared Marketing Services n r befre February 28, f 2013, t be cnsidered fr reimbursement. Claims received after February 28 th will nt be accepted. Pre-Apprval Requirements All retailer created ads must be submitted t SMS fr pre-apprval using SMS Pre-Apprval Frm. Pre-apprval frm can be e-mailed r faxed t SMS and will be prcessed within ne business day. (E-mail address: nbapprvals@sharedmarketing.cm; FAX #: 1-877-661-3149 All ther prmtinal prgrams must be pre-apprved by yur New Balance Sales Representative. SMS Website Access fr NBDF Budget, Claim Tracking and Electrnic Claim Submissins Retailers and Sales Reps. can view accunt, budget and claim infrmatin Retailers have ptin t submit payment claims electrnically Website address: www.sharedmarketing.cm NBDF Advertising Vehicles Print Advertisements (Newspaper, Magazine, Circular, In-Stre Flyer, Direct Mail) Televisin Radi Digital/Internet E-Mail Blast Outdr Billbards

NBDF, Grass Rts Prgrams RSA Ftwear Seeding Race Spnsrship Special Event (Running Clinic, Dem Day) Crprate Spnsred and Develped Spiff Prgram NBDF In-stre Merchandising Vehicles New Balance Gift with Purchase (Limited t New Balance Licensee Prducts)) RSA Ftwear Seeding Custmer Sweepstakes Cntest with Secndary Display T be eligible fr NBDF reimbursement, all advertising and r merchandising prgrams must meet New Balance Trademark usage and Brand Plicies, receive pre-apprval by SMS r a New Balance Sales Representative, and prvide specific prf f perfrmance, within 60 days f the prgram cmpletin. Ftwear Advertised Price Plicy T qualify fr reimbursement, dealers must adhere t the fllwing advertised pricing plicies. New Balance Minimum Advertised Price, MAP Plicy. Advertising which vilates the MAP Plicy will nt be eligible fr NBDF reimbursement. Advertising fr Nn-MAP Styles will qualify fr NBDF reimbursement under the fllwing cnditins: Styles with MSRP s $90 and abve are advertised at n mre than 10% ff the MSRP. Styles with MSRP s between $66-$89.99 are advertised at n mre than 20% ff the MSRP. Styles with MSRP s $65.99 r less are advertised at n mre than 25% ff the MSRP (as lng as advertised price remains abve $49.00). Kids prducts advertised at n mre than 20% ff MSRP. *New Balance MSRP infrmatin is included in all catalgs and n the B2B Website **The MAP Plicy is available n the B2B website, r by cntacting yur New Balance sales representative. General discunt statements fr New Balance ftwear which specify a percent r dllar value discunt may qualify fr reimbursement under this prgram if the ttal discunt fr the advertisement des nt vilate New Balance MAP and, r Nn-MAP Style Guidelines as utlined abve. This includes percent ff, dllar ff, and cupn ffers cmbined. Discunt cupns which specify a percent r dllar value discunt may qualify fr reimbursement under this prgram if the cupn is given as an in stre prmtin fr gd fr next purchase ffer, r the ttal discunt value f the advertisement (including dllar ff r percent ff) des nt vilate New Balance MAP and Nn-Map Style guidelines as utlined abve. New Balance will nt reimburse fr any advertisement that is nt 100% in cmpliance with the existing prgram including the abve Advertising plicies.

NBDF Advertising Reimbursement Guidelines Deductins f NBDF claims frm merchandise invices are nly eligible after Shared Marketing Services SMS has prcessed the claim submissin and cnfirmed fund availability. The fllwing are nt reimbursable under the NBDF Plicy: Charitable dnatins. New Balance will nt reimburse fr agency fees related t talent r mdeling fees. New Balance will reimburse fr Prductin Fees up t 25% f annual NBDF Budget, with pre-apprval and riginal invice dcumentatin. Advertising media placement cmmissins up t ten percent f the ttal media buy are eligible fr reimbursement nly if the cmplete claim cntains an riginal invice frm the media surce shwing actual advertising rate paid, alng with separate agency invice detailing placement cmmissin. Advertising placement cmmissin reimbursement is nt applicable t dealer in huse advertising placement persnnel. Prf f Perfrmance, Dcumentatin Requirements All claims must be accmpanied by a cmpleted New Balance Brand Family c-p claim frm. Televisin Televisin advertising must cntain a minimum f 8 secnds dedicated t New Balance and/r New Balance Brand Family f prduct. Statin lg, and invice including number f spts, and length f spts with cst per annuncement. Script dcumented using ANA/TVB r ANA/CATV frmat. VHS/DVD cpy f the TV/Cable cmmercial Print Advertising Must cntain New Balance, Aravn, r Dunham lg, and adhere t advertising plicies. Newspaper insertin invice and Full page tear sheet frm each newspaper, r full edit prtected E-Tearsheet (printed ut, and mailed in with claim). Insert/Mailer/Circular: Prductin invice, Printing invice, Insertin invice r bulk mail receipt and cpy f insert / mailer / circular

Radi Advertisement must be 100% New Balance and/r New Balance Brand Family prducts. ( Live radi is nt reimbursable thrugh c-p) Statin lg and invice including number, and length f spts, and cst per spt with script dcumented using ANA/RAB frmat Outdr Billbards Ad must be 100% New Balance. Invice frm utdr advertising cmpany, itemizing csts, duratin and lcatin f ads, Printing/utdr painting invice, Phtgraph f each utdr lcatin (shwing finished sign, billbard r mbile advertisement as displayed) Digital Itemized Media Placement invice and cpy f screen sht r email Cupn Prgrams Descriptin f prgram: Cupn circulatin, # Stres participating, cupn time frame Invice fr prgram prcessing. Cupn redemptin cannt be cvered thrugh NBDF. New Balance Gift with Purchase Prgram details: Date f Prgram, Participating prducts and cst f New balance Gift (scks, apparel, accessries). RSA Ftwear Seeding Prgram details: Mdel/Styles seeded, prduct cst, # f pairs, emplyee names, titles and dates f prduct seeded. Custmer Sweepstakes Cntest with Secndary Display Cntest details and prduct invices Crprate Spnsred and Develped Spiff Prgram Prgram descriptin, dates, prducts included, and invice utlining sales results fr each RSA. All New Balance Brand Family lgs must be used exactly as prvided thrugh Media Bin.

NBDF Payment Claim Requests shuld be submitted t: Claim Submissin New Balance C-p Advertising Prgram Shared Marketing Services P.O. Bx 812480 Chicag, IL 60681-2480 Attn: New Balance Tel. 800-937-2667 I Fax. 312-938-4376 Or electrnically via the Shared Marketing Services website http://hme.sharedmarketing.cm New Balance Cntact Infrmatin Fr additinal assistance with advertising, prmtinal planning, pre-apprval prcess r payment questins, please cntact yur Sales Representative. *Disclaimer: New Balance Athletic Shes, Inc. prvides this NBDF prgram as a business building tl t assist its dealers in advertising New Balance prduct. New Balance reserves the right t update, eliminate, change r amend these plicies at any time withut prir ntice. Failure t adhere t these plicies and prcedures may result in the rejectin f claims and/r terminatin f participatin in the prgram. New Balance reserves the right t deny reimbursement f any claim based upn vilatin f the rules set frth in the prgram. Claims fund t be fraudulent and/r misrepresented in any way will result in the immediate terminatin f participatin in this prgram.