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ARBITRATION AGREEMENT

This Agreement is made on May 16, 2012, between RL Electronics, Inc of 440 Montgomery St., San Francisco, California 94103, hereinafter referred to as First Party and McIntyre Distributing Company of 123 Main St., San Francisco, California 94110, hereinafter referred to as Second Party. WHEREAS, the business relationship between the parties commenced March 12, 2012 as defined in the original business contract, namely RL Electronics Product Distribution Agreement, which is attached and incorporated herein; AND WHEREAS the parties herein recognize disputes and differences may arise between the parties; AND WHEREAS the parties agree it is in their best interest to appoint an arbitrator to resolve such disputes as they arise; NOW IT IS AGREED BETWEEN THE PARTIES HERETO AS FOLLOWS: The parties hereto agree to refer the following matters and responsibilities to the Arbitrator: To resolve all disputes and differences under the original contract The Arbitrator shall direct the parties to file statements of their respective claims, legal submissions and reliefs claimed and each party to file his statement of defense in reply to the statements of claims of others. The Arbitrator shall allow the parties to produce documents in support of thier claims. The Arbitrator shall direct the books of account and other papers of the Firm to be produced before them and arrange for thier safe custody. The Arbitrators will have power to appoint a qualified accountant to inspect the accounts and to draw a balance sheet. The Arbitrator shall allow the parties to be represented by their respective advocates. The Arbitrator shall not be bound to take oral evidence but if any party or their witness is examined he will be allowed to be cross-examind. The Arbitrator shall be allowed to make one or more Interim Awards. The Arbitrator shall make their award within 180 days from their entering upon the reference but can extend the period from time to time with the consent of all the parties hereto obtained in writing. In the event of any party refusing to participate in the Arbitration proceedings or remaing absent without valid cause, the Arbitrator shall have power to proceed ex-parte against such party.
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The costs of the Arbitration proceedings will be divided in the discretion of the Arbitrators.

The Arbitration, subject to what is herein provided shall be goverened by the Federal Arbitration Act. IN WITNESS WHEREOF the parties hereto has caused this Agreement to be signed and delivered by its duly authorized representative as of the first date written above.

___________________________________ RL Electronics, Inc By Robert L. Mackabee, its Director and Shareholder

___________________________________ McIntyre Distributing Company By John McIntyre, its Owner

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