Document:

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                                                                   Exhibit 10.27

                             MANUFACTURING AGREEMENT

This Manufacturing Agreement ("Agreement") is made and entered into as of
November 1, 2000 (the "Effective Date") by and between Action Performance
Companies, Inc., an Arizona corporation ("Action"), and Early Light Industrial
Co. Ltd., a Hong Kong corporation ("Manufacturer").

                                    RECITALS

A. Action has designed, developed and owns the rights in and to certain die-cast
products to be manufactured using certain molds, patterns and tools designed and
owned by Action and supplied by Action to Manufacturer or developed by
Manufacturer for Action at Action's sole cost and expense.

B. Action has appointed Manufacturer as their Exclusive Manufacturer of all
motorsports wheeled die-cast replica vehicles excluding CART and IRL 1/18th,
1/43rd and 1/64th lines and Pedal Cars (the "Products").

                                    AGREEMENT

     NOW, THEREFORE, in consideration of the premises and of the mutual
covenants herein contained, the parties agree as follows:

1. Term. This Agreement shall be in effect for an initial term of five (5) years
commencing from the Effective Date hereof (the "Term"). Thereafter, this
Agreement shall be automatically renewed and shall continue in effect upon the
same terms and conditions for five (5) successive one-year renewal periods (the
"Renewal Periods"); unless terminated by either party by giving ninety (90) days
prior written notice before the end of the Term or any Renewal Period
thereafter.

2.       Ordering Procedures.

(a) All orders for Products pursuant to this Agreement shall be subject to the
terms and conditions set forth in this Agreement, notwithstanding the terms
specified in any purchase order. Whenever Action desires to order any Products,
Action shall give Manufacturer, at least forty (40) days prior to the desired
shipping date of the Products, a signed written purchase order specifying the
type, scale and quantity of each Product desired to be manufactured and the
expected delivery date of Products being ordered, and, in the case of any
Products to be shipped to any customer of Action, the name and shipping address
of the customer and the name and telephone number of a contact person at each
customer. Each order shall be deemed accepted upon delivery to Manufacturer
unless Manufacturer delivers to Action signed written notice of nonacceptance
within seven (7) days after receipt of an order. In addition, Manufacturer
shall, within ten (10) days after receipt of each order, deliver a written
acknowledgement of receipt. Each acknowledgement of receipt delivered to Action
by Manufacturer shall specifically

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acknowledge the price and expected delivery date for each Product ordered, as
specified in the purchase order being acknowledged.

(b) Manufacturer shall at all times (except Chinese New Year) during the Term,
or any Renewal Period, of this Agreement maintain sufficient capacity to
manufacture a minimum number of Products to be shipped to Action sufficient to
complete orders placed by Action in the minimum amount of $4,000,000 United
States dollars per month.

(c) Action shall regularly furnish Manufacturer relevant business information
regarding the Products. Without limiting the generality of the foregoing, within
thirty (30) days after the end of each calendar quarter, Action shall provide to
Manufacturer quarterly sales projections and otherwise keep Manufacturer
informed of expected orders.

3. Purchase Price. The per unit purchase price for each Product shall be as set
forth in each purchase order as required by paragraph 2(a) hereof and in
accordance with the price guidelines set forth in the attached Exhibit A which
shall be valid for twelve (12) months from the Effective Date hereof.
Thereafter, the annual purchase price for each Product shall be negotiated in
good faith and mutually agreed upon in writing by the parties.

4. Shipping and Responsibility for Costs. All prices for the Products are and
shall be F.O.B. Manufacturer's facility Hong Kong. The F.O.B. prices shall be
determined as set forth in paragraph 3 hereof. All Products shall be packaged by
Manufacturer for shipment by a carrier of Action's choice. All Products shall be
packed by Manufacturer for protection against normal handling. Any costs of
preservation, waterproofing or other special packaging and palletizing, and all
charges incurred subsequent to the delivery of Products for shipment F.O.B.
Manufacturer's facility Hong Kong, including, but not limited to, freight,
insurance, customs, duties, demurrage charges and turnover, sales, excise and
other federal, state or local taxes, shall be borne by Action. Action will
contract directly with the carrier to pay all shipping costs. In the absence of
a separate "ship to" designation on a purchase order, Manufacturer is authorized
to ship to Action at Action's address set forth in this Agreement. Within
twenty-four (24) hours after each shipment of Products, Manufacturer shall
notify Action of the shipment.

5. Product Packaging. Manufacturer shall package each Product as set forth in
the purchase order for such Product.

6. Payment of Manufacturer. Except as otherwise expressly agreed in writing by
the parties hereto, payment for the Products shall be made in United States
dollars in an amount adequate to cover the full purchase price as set forth in
the purchase order for such Products and shall be due and payable by confirmed
and irrevocable letter of credit on sight of invoice from Manufacturer. All
other charges incurred by Manufacturer for the account of Action shall be due
and payable via Telegraphic Transfer within fourteen (14) days upon receipt of
Manufacturer's monthly fax statement.

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7. Molds.

(a) Manufacturer acknowledges receipt from Action of all molds and tools
necessary to manufacture the Products (the "Molds"). Manufacturer shall use the
Molds to manufacture the Products. Action represents and warrants to
Manufacturer that it owns all right, title and interest in and to the Molds.
Manufacturer agrees and acknowledges that the Molds shall at all times during
and after the Term, or any Renewal Period, of this Agreement remain the property
of Action. Manufacturer further agrees that upon the termination of this
Agreement, or upon written notice of Action or other duly authorized
representative of Action at any time prior to the termination of this Agreement,
the Molds shall be returned to Action and Manufacturer shall permit Action or
other duly authorized representatives of Action to enter upon Manufacturer's
premises for the purpose of removing the Molds.

(b) Upon agreement of the parties hereto; Action shall have the right to provide
additional Molds (the "Additional Molds") to be used by Manufacturer to
manufacture additional or new Products under this Agreement. Such Additional
Molds may be built either by Manufacturer or by a mutually agreed upon third
party. Manufacturer agrees that all such Additional Molds, whether built by
Manufacturer or another party agreed upon by the parties, shall at all times
during and after the Term, or any Renewal Period, of this Agreement remain the
property of Action, and shall be returned to Action pursuant to the terms of
paragraph 7(a) above.

Mold payments shall be due in two installments, 50% upon approval of
Manufacturer's quotation or upon Action's issuance of tooling P/O. Balance 50%
to be effected upon tool release.

(c) At all times during the Term, or any Renewal Period, of this Agreement, and
for such reasonable time after the termination of this Agreement until the Molds
and Additional Molds are returned to Action, Manufacturer shall, at
Manufacturer's sole cost and expense: (i) house the Molds and Additional Molds
at one or more of its manufacturing facilities; (ii) provide such security and
other measures as shall be reasonably necessary to protect the Molds and
Additional Molds and keep them safe from damage (ordinary wear and tear
excepted) or destruction that may be caused by theft, vandalism, weather, or
other forces; and (iii) perform such preventative maintenance and repairs to the
Molds and Additional Molds as shall be necessary to maintain the Molds and
Additional Molds in a condition necessary to produce Products of a quality
acceptable to Action and in a condition reasonably satisfactory to Action.

(d) The parties agree that patterns for molds ("Mold Patterns") will be
developed at the facilities of Manufacturer or the facilities of a mutually
agreed upon third party, with whom even though Action has a pre-existing
relationship for the development of Mold Patterns, to be dealt with and
supervised by Manufacturer. All Mold Patterns will remain the sole and exclusive
property of Action.

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(e) This Agreement shall exclude molds currently in process at other facilities
at the time of the signing of this Agreement ("Other Molds"). A list of said
Other Molds shall be attached in Exhibit B of this Agreement.

8. Samples. Upon written request of Action, Manufacturer shall, at Action's sole
cost and expense, within thirty (30) days produce and deliver to Action, for
Action's approval, at least six (6) samples of the same scale of each rendering
as specified in the purchase order for such Product ("Samples"). Action shall,
within fifteen (15) days after receipt of each group of Samples, notify
Manufacturer in writing of its acceptance or rejection of such Samples. Any
acceptance of Samples must be in writing to be effective. Upon receipt of
written acceptance of Samples, Manufacturer shall manufacture and ship to Action
the quantity of Product ordered, and all such Products shall conform, in all
respects, to the accepted Samples. Any rejection of such Samples by Action shall
be in writing, which writing shall specify the reason or reasons for rejection
due to manufacturing defects. In the event of rejection due to manufacturing or
other defects under the control of Manufacturer, Manufacturer shall, at its sole
cost and expense, correct the deficiencies and produce and deliver to Action for
Action's approval at least six (6) new Samples. Action shall, within fifteen
(15) days after receipt of the new Samples notify Manufacturer in writing of its
acceptance or rejection of such new Samples. If Action rejects any new Samples,
Action may, in its sole discretion, (i) specify the reason or reasons for
rejection and request Manufacturer to provide additional new Samples, or (ii)
cancel the purchase order. Notwithstanding the foregoing, if the rejection of
any Samples required by this paragraph is due to any reason or reasons beyond
the control of Manufacturer, Manufacturer shall produce and deliver to Action an
equivalent number of new Samples, at the same cost and expense, if any, to
Action as was agreed to be paid by Action for such rejected Samples.

9. Warranty.

(a) Manufacturer warrants that the Products will (i) be manufactured in
accordance with the manufacturing guidelines and specifications set forth in the
purchase order for such Products; (ii) be manufactured using the Molds or
Additional Molds and will be assembled using the same or better quality
materials as specified in the purchase order for such Products and as per the
Samples submitted to and approved by Action; (iii) when delivered, conform to
the description of and specifications for the Products set forth in the purchase
order for such Products and as per the samples submitted and approved by Action;
and (iv) be free of defects in materials and workmanship.

(b) Manufacturer shall, at its option, repair, replace (F.O.B. Manufacturer's
facility Hong Kong), or issue a credit or refund to Action for, any
nonconforming Products, provided that Action furnishes to Manufacturer notice of
the nonconformity of any Products within one hundred twenty (120) days from date
of ex-factory date. Manufacturer shall, within ten (10) working days after
receipt of notice of nonconformity or upon receipt of sufficient samples
representing the claimed defects, advise Action of Manufacturer's intent to
repair, replace (F.O.B. Manufacturer's facility Hong Kong), or issue a credit or
refund to Action for the nonconforming Products. If so requested by

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Manufacturer, Action shall deliver the Products claimed to be nonconforming to
Manufacturer within reasonable time as given by Manufacturer. A new warranty
period shall be established pursuant to this paragraph for any repaired or
replaced Products.

(c) NEITHER PARTY TO THIS AGREEMENT SHALL BE LIABLE TO THE OTHER FOR ANY
SPECIAL, INCIDENTAL, CONSEQUENTIAL, INDIRECT OR EXEMPLARY LOSSES OR DAMAGES
PERTAINING IN ANY WAY TO, OR ARISING OUT OF, THEIR RESPECTIVE OBLIGATIONS SET
FORTH IN THIS AGREEMENT.

10. Representations and Warranties of Manufacturer. Manufacturer represents,
warrants and agrees that it is a corporation, duly organized and validly
existing under the laws of Hong Kong with full right, power and authority to
carry on its business as it is now being conducted and as intended to be
conducted in accordance with this Agreement. The execution and delivery of this
Agreement, the timely consummation of the transactions contemplated hereby and
the full and timely fulfillment of the terms hereof have been duly and validly
authorized by all necessary action on the part of Manufacturer, and this
Agreement constitutes the legal, valid and binding obligation of Manufacturer,
enforceable against Manufacturer in accordance with its terms.

11. Representations and Warranties of Action. Action represents, warrants and
agrees that it is a corporation, duly organized and validly existing under the
laws of the State of Arizona with full right, power and authority to carry on
its business as it is now being conducted and as intended to be conducted in
accordance with this Agreement. The execution and delivery of this Agreement,
the timely consummation of the transactions contemplated hereby and the full and
timely fulfillment of the terms hereof have been duly and validly authorized by
all necessary action on the part of Action, and this Agreement constitutes the
legal, valid and binding obligation of Action, enforceable against Action in
accordance with its terms.

12.      Proprietary Rights: Non Competition

(a) Manufacturer shall not, without the prior written consent of Action, use any
of the Products, Molds or Additional Molds, or any information with respect
thereto or with respect to Action, for its own benefit or for the benefit of
others (except for the benefit of Action) in any way or for any reason other
than as expressly contemplated herein. Manufacturer acknowledges that the
Products, the Molds and Additional Molds, all copies or reproductions thereof,
and all information with respect thereto or with respect to Action, are the
exclusive property of Action.

(b) Except as otherwise expressly provided herein, Manufacturer shall not,
without the prior written consent of Action, use or display any of Action's
trademarks, logos, trade names, corporate names or other proprietary rights,
(including, without limitation, the names "Action Performance Companies, Inc.,"
"Racing Collectables by Action," "Racing Collectables Club of America," "RCCA,"
"Action Racing Collectibles," "ARC," "goracing," "AP," or "Action Promotions")
and any logo or logos associated therewith.

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The use of any of Action's trademarks, symbols, trade names or other proprietary
rights by Manufacturer shall inure to Action's benefit and shall not give
Manufacturer any proprietary rights therein. Manufacturer shall not register any
of Action's trademarks, symbols, trade names or other intellectual property
rights or use them in any way or form other than as authorized by Action or as
expressly contemplated herein.

(c) Except for any name(s) and logo(s) placed on the Products or Product
packaging by Manufacturer as specified in the applicable purchase order(s) for
such Products, Manufacturer shall refrain from using any trademarks, logos,
trade names, or corporate names in any manner in connection with the Products
without the prior written consent of Action. Manufacturer shall refrain from
taking any actions that may be detrimental to Action's proprietary interest in
any of its trademarks, logos, trade names or corporate names, and shall also
refrain from taking any action that may be detrimental to any proprietary
interest that Action may possess, through licensing agreements, contracts, or
otherwise, in any trademark, logo, trade name, corporate name, or identity or
likeness of any person other than Action.

(d) Upon any termination or expiration of this Agreement, for any reason
whatsoever, Manufacturer shall discontinue all use of Action's trademarks,
logos, trade names, corporate names or other proprietary rights of Action and
Manufacturer shall discontinue use of any trademark, logo, trade name, corporate
name, or identity or likeness of any person other than Action in which Action
may have any interest or license or permission to use, and Manufacturer shall
take any and all action that may reasonably be requested or required by Action
to dispose of or deliver to Action materials in Manufacturer's possession or
control, including without limitation, all Molds and Additional Molds, all
copies and reproductions thereof, and all documents and items having any
trademarks, logos, trade names or corporate names of Action or in which Action
may have any interest or license or permission to use.

(e) Neither Manufacturer nor any person or entity controlled directly by
Manufacturer shall, for the Term, or any Renewal Period, of this Agreement
directly, for itself or on behalf of any other person, firm, partnership or
corporation that sells or proposes to sell, design, manufacture, market or
distribute anywhere in the continental United States or Europe die-cast products
the same or similar to Products produced by Manufacturer for Action pursuant to
this Agreement.

(f) Manufacturer shall refrain from disclosing to any third parties, or using
for any purposes, any customer lists, operating, marketing or sales management
information or other confidential or proprietary information, including, without
limitation, information as to Action's customers or the relationship established
hereunder, and Manufacturer shall cause its employees and agents to refrain from
disclosing to any third parties, or using for any purpose, any such confidential
or proprietary information. Manufacturer shall limit its use for such
confidential or proprietary information received hereunder to the purposes of
this Agreement.

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(g) Manufacturer specifically acknowledges that Action currently sells Products
throughout the continental United States and Europe and the restrictions set
forth in this paragraph 12 are each necessary and reasonable and were negotiated
with Manufacturer. Manufacturer hereby acknowledges and agrees that the
restrictions set forth in this section are reasonable and necessary and that any
violation hereof would result in substantial and irreparable injury to Action,
and Action may not have an adequate remedy at law with respect to any such
violation. Accordingly, Manufacturer agrees that, in the event of any actual or
threatened violation hereof, Action shall have the right and privilege to
obtain, in addition to any other remedies that may be available, equitable
relief, including temporary and permanent injunction relief, to cease of prevent
any actual or threatened violation of any provision of this paragraph 12. If any
provision of this paragraph 12 is deemed unenforceable for any reason
whatsoever, that provision will be appropriately limited and reformed to the
maximum extent provided by applicable law. If the scope of any restriction
contained in this paragraph 12 is too broad to permit enforcement to its full
extent, then such restriction shall be enforced to the maximum extent permitted
by law so as to be judged reasonable and enforceable, and the parties agree that
such scope may be modified by an arbitrator or judge in any proceeding to
enforce this Agreement. This includes, without limitation, altering or enforcing
only portions of the limits on activity restrictions, the geographic scope, and
the duration of the convenants, unless to do so would be contrary to law or
public policy.

13. Advertising and Promotion. Action shall have the exclusive right to
advertise and to promote the Products. Without the prior written consent of
Action, Manufacturer shall not advertise, promote or sell the Products to any
entity other than Action. Manufacturer shall forward to Action all
correspondence, orders, inquiries and leads received by Manufacturer with
respect to the sales, distribution and marketing of the Products.

14. Termination.

(a) If either party fails to perform any of its material obligations under this
Agreement, and the default is not cured within fifteen (15) days after the
giving of written notice thereof to the defaulting party, the nondefaulting
party may terminate this Agreement at the end of the fifteen (15) day period.

(b) If Manufacturer is dissolved or liquidated, becomes or is adjudicated
insolvent or bankrupt, or if a receiver or trustee is appointed for Manufacturer
or its property, or if a petition for reorganization or arrangement under any
bankruptcy or insolvency law regarding Manufacturer is approved, or if any
assignment is made for the benefit of Manufacturer's creditors, or if
Manufacturer files a voluntary petition in bankruptcy or a petition or answer
seeking to take advantage of any insolvency or bankruptcy law or otherwise
admits insolvency or bankruptcy or consents to the appointment of a receiver or
trustee, then, in addition to such other remedies as may be available in law or
equity, Action shall have the right to terminate this Agreement immediately.

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(c) Notwithstanding any termination of this Agreement, Manufacturer shall be
required to deliver those Products ordered by Action from Manufacturer prior to
the effective date of termination; and it shall be a precondition to effect a
termination of this Agreement by Manufacturer that Manufacturer first ships all
such Products to Action.

15. Independent Contractor. Action and Manufacturer acknowledge and agree that
Manufacturer is an independent contractor and that under this Agreement neither
Action nor Manufacturer shall be considered for any purpose to be the agent,
partner, franchiser, franchisee or joint venturer of the other. Nor shall
Manufacturer or Action have any obligation or responsibility to act on behalf of
or in the name of the other, or have the power or authority to bind the other in
any manner whatsoever. Any representation to the contrary by Action or by
Manufacturer, or the employees or agents of either, shall be sufficient grounds
for the termination of this Agreement by the other party hereto.

16. Further Assurances. Each of the parties hereto shall execute and deliver all
such other instruments and take all such actions as either party may reasonably
request from time to time in order to effectuate the purposes of this Agreement
and the transactions provided for herein.

17. Notices. 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 give, made and received when delivered against receipt, or twenty-four
(24) hours after being sent by telecopy, or five (5) days after being sent by
registered or certified mail, postage prepaid, return receipt requested,
addressed to the recipient's address as set forth below:

                             (1) Early Light Industrial Co., Ltd.
                                 Block E-L, 23/F., Superluck Industrial Centre
                                 (Phase 2), 57 Sha Tsui Road, Tsuen Wan
                                 Hong Kong

                             (2) Action:

                                 Action Performance Companies, Inc.
                                 4707 E. Baseline Road
                                 Phoenix, Arizona 85040-6430
                                 Attn: Fred W. Wagenhals

                                 With a copy to:

                                       Greenberg Traurig, LLP
                                       One East Camelback Road
                                       Suite 1100
                                       Phoenix, Arizona 85012
                                       Attn: Robert S. Kant, Esq.

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Either party may alter the address to which communications are to be sent by
giving notice of the change of address in conformity with the provisions of this
paragraph for the giving of notice.

18. Binding Nature of Agreement: Assignment. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns, except that Manufacturer may not assign or transfer its
rights or obligations under this Agreement without prior written consent of
Action, and any such assignment or transfer without such approval shall
constitute a breach hereof and shall be null and void and of no force or effect,
and shall not convey any rights to or interest in this Agreement.

19. Entire Agreement. This Agreement contains the entire agreement and
understanding between the parties hereto with respect to the subject matter
hereof, and supersedes and is in lieu of all prior and contemporaneous
agreements, understandings, inducements and conditions, express or implied, oral
or written, of any nature whatsoever with respect to the subject matter hereof.
The express terms hereof control and supersede any course of performance or
usage of the trade inconsistent with any of the terms hereof.

20. Arbitration.

(a) If the parties hereto are unable to resolve any disputes, differences or
questions arising out of or relating to this Agreement (including, without
limitation, those as to the validity, interpretation, breach, violation or
termination thereof) at the written request of either party, such disputes, etc.
shall be finally determined and settled pursuant to arbitration in Hong Kong by
three arbitrators, one to be appointed by Action, one by Manufacturer, and a
neutral arbitrator to be appointed by the two party-appointed arbitrators. The
neutral arbitrator shall be an attorney and shall act as chairman. Should (i)
either party fail to appoint an arbitrator within ten (10) days after the party
not requesting arbitration has received such written request, or (ii) the two
arbitrators appointed by or on behalf of the parties as contemplated in this
paragraph fail to appoint a neutral arbitrator within ten (10) days after the
date of the appointment of the last arbitrator appointed by the parties, then
any person sitting as a judge in any court of competent jurisdiction, upon
application of either party hereto, shall appoint an arbitrator to fill such
position with the same force and effect as though such arbitrator had been
appointed as provided for above.

(b) The arbitrators shall apply the rules governing contracts for the sale of
goods as set forth in the United Nations Convention on the Recognition and
Enforcement of Arbitral Awards (the "U.N. Convention"). To the extent the U.N.
Convention does not cover a particular dispute or point, the arbitrators shall
apply general principles of international law relating to international trade,
as implemented by the International Chamber of Commerce of Paris, or customary
rules of equity and commerce.

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(c) The arbitration proceeding shall be conducted in the English language in
Hong Kong. If either party requests, the arbitration proceedings shall be
simultaneously translated into Chinese. The proceeding shall be conducted in
accordance with the Rules of the United Nations Commission on International
Trade Laws, in effect at the time of the arbitration proceeding. A
determination, award or other action shall be considered the valid action of the
arbitrators if supported by the affirmative vote of two or three of the three
arbitrators. The costs of arbitration (exclusive of the expenses of a party in
obtaining and presenting evidence and attending the arbitration, and of the fees
and expenses of legal counsel to such party, all of which shall be borne by such
party) shall be shared equally by the parties hereto. The arbitration award
shall be final and conclusive and shall receive recognition by, and judgment
upon such award may be entered and enforced in, any court of competent
jurisdiction.

21. Indulgences Not Waivers. Neither the failure nor any delay on the part of a
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 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. No waiver shall be effective unless it is in writing and
is signed by the party asserted to have granted such waiver.

22. Provisions Severable. The provisions of this Agreement are independent of
and severable 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.

23. Number of Days. In computing the number of days for purposes of this
Agreement, all days shall be counted, including Saturdays, Sundays and holidays
in the State of Arizona; 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 that is not a Saturday, Sunday or holiday.

24. Attorney's Fees. If any action is brought to enforce the provisions of this
Agreement, the prevailing party in the action shall be entitled, in addition to
any other relief, to recover reasonable attorney's fees and other costs and
expenses incurred in the action in an amount to be fixed and determined by the
court.

25. Construction. The parties hereto acknowledge and agree that each party has
participated in the drafting of this Agreement and that this document has been
reviewed by the respective legal counsel for the parties hereto and that the
rule of construction to the effect that any ambiguities are to be resolved
against the drafting party will not be applied to the interpretation of this
Agreement. No inference in favor of, or against, any party shall be drawn from
the fact that the one party has drafted any portion hereof.

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26. Amendment. This Agreement may only be amended or modified by written
agreement signed by all of the parties hereto.

27. Execution in Counterparts. 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 all of the parties reflected thereon as the signatories.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and
delivered by their proper and duly authorized officers as of the date first
above written.

                                     EARLY LIGHT INDUSTRIAL CO., LTD.

                                     By: _______________________________________

                                     Its: ______________________________________

                                     Date: _____________________________________

                                     ACTION PERFORMANCE COMPANIES, INC.

                                     By: _______________________________________

                                     Its: ______________________________________

                                     Date: _____________________________________

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                                    EXHIBIT A

PRICING

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                                    EXHIBIT B

OTHER MOLDS:

-         1976 Ford Torino 1/24th scale
-         1965 Chevelle 1/24th scale
-         Harley Davidson Duece 1/24th scale Bike

                                       13<PAGE>   1
                                                                       EX. 10.59

                                    AGREEMENT

         AGREEMENT dated September 13, 2000, by and between ACTION PERFORMANCE
COMPANIES, INC., 4707 East Baseline Road, Phoenix, Arizona 85040 ("ACTN") and
QVC, INC., 1200 Wilson Drive, West Chester, Pennsylvania 19380 ("QVC") (each of
the foregoing occasionally referred to hereafter as a "Party" and collectively
as the "Parties").

         WHEREAS, ACTN is engaged in the design, marketing, manufacture,
distribution and sale of motor sports-related die-cast replica collectibles,
apparel, souvenirs and other merchandise (the "Products"), which incorporate
names, likenesses, trademarks and other intellectual property owned by ACTN and
licensed to ACTN by various motor-sports drivers, automobile manufacturers and
other third parties (the "Underlying Rights Owners"); and

         WHEREAS, ACTN has organized and operates the Racing Collectables Club
of America ("RCCA"), whose members have the exclusive right to receive from ACTN
catalogs and other sales materials pertaining to certain Products bearing the
"RCCA" and "Elite" brand names (collectively the "RCCA Branded Products") and
the exclusive right to purchase such RCCA Branded Products; and

         WHEREAS, ACTN wishes to grant QVC the exclusive right to distribute and
sell the RCCA Branded Products and to assume day-to-day operation of RCCA, as
well as to engage in promotion of RCCA and the RCCA Branded Products in all
media and QVC wishes to accept such rights and obligations, all subject to the
terms and conditions of this Agreement;

         NOW, THEREFORE, and in consideration of the mutual agreements contained
herein and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree as follows:

         1. GRANT OF DISTRIBUTION RIGHTS; TRANSITION OF OPERATIONS:

                  (a) ACTN hereby grants to QVC the exclusive right to
distribute and sell all RCCA Branded Products wherever ACTN holds the right to
sell such merchandise, for the Term provided herein, as well as the exclusive
right to use the ACTN and third-party names, likenesses, trademarks and other
intellectual property exclusively associated with the RCCA Branded Products
including, without limitation, the RCCA and Elite trademarks (collectively the
"Licensed Property") solely in connection with QVC's distribution and sale of
RCCA Branded Products hereunder and for no other purpose. Current lists of all
RCCA Branded Products, and the various items of intellectual property owned or
controlled by ACTN which constitute the Licensed Property hereunder, are
attached hereto as Exhibits A and B respectively, and are incorporated by
reference herein. Without limiting the foregoing, QVC will maintain all
inventory warehousing, call center operations, order processing, order
fulfillment, return processing and similar "back end" operations, and will be
responsible for all costs associated therewith. ACTN will retain responsibility
for product selection and development, acquisition of
<PAGE>   2
rights from Underlying Rights Owners, arrangements for manufacture of products
and delivery of same to QVC-designated warehouse facilities.

                  (b) QVC will assume full responsibility for ACTN's call center
operations with respect to RCCA Branded Products as soon as practicable, but in
no event later than October 31, 2000, and with respect to all other operations
contemplated hereunder no later than January 31, 2001 (the "Full Assumption
Date"). From the date of QVC's assumption of such operations it will receive all
such inventory from ACTN, pursuant to the terms of its consignment order
attached hereto as Exhibit E (the "Consignment Order"), which is incorporated
herein by reference. Without limiting the foregoing, the following transitional
actions will be taken prior to the Full Assumption Date:

                           (i)      QVC will issue a Consignment Order and take
                                    into its warehouse facility substantially
                                    all of ACTN's current inventory of die-cast
                                    products, and will immediately commence
                                    sales of such inventory at prices previously
                                    established by ACTN or as otherwise mutually
                                    agreed to by the Parties. ACTN will, at its
                                    expense, pack and ship such current
                                    inventory to QVC according to QVC's
                                    reasonable specifications.

                           (ii)     ACTN will deliver to QVC catalog-ready
                                    digital images and detailed text
                                    descriptions of the RCCA Branded Products.

                           (iii)    ACTN and QVC shall each designate one or
                                    more individual representatives who will be
                                    primarily responsible on a first-priority
                                    basis for implementing all aspects of QVC's
                                    assumption of such fulfillment operations.

         2. RCCA ADMINISTRATION: QVC will assume day-to-day operation of RCCA in
accordance with the transition deadlines established in subparagraph 1(b) above,
including (at QVC's discretion) promotion via television, print and online
media. ACTN will provide links on its "goracing.com" website to QVC's online
promotion sites. The RCCA membership database (the "Database") will at all times
hereunder remain the sole and exclusive property of ACTN; however during the
Term (as defined below) QVC will be responsible for maintaining the Database and
shall have the non-exclusive right (shared only with ACTN, which shall only
utilize the Database for marketing of ACTN products), to utilize the Database
solely in connection with QVC's distribution and sale of RCCA Branded Products
hereunder, and may also market QVC-sponsored motor-sports shows and other events
to RCCA members (provided that ACTN is the primary merchandise vendor at each
such event). ACTN will deliver the current form of the Database to QVC in such
print and/or electronic form as QVC may reasonably request. During the Term, QVC
will update the Database regularly and will make updated versions of the
Database available to ACTN no less often than quarterly, in such print and/or
electronic form as ACTN may reasonably request. QVC will operate and promote
RCCA pursuant to quality standards and existing levels of member promotional
activity (e.g., frequency of catalogs and other mailings) at least equal to the
standards of operation currently maintained

                                       2
<PAGE>   3
by ACTN or as may otherwise reasonably be determined by QVC after consultation
with ACTN with respect to material adjustments.

         3. PRODUCT DEVELOPMENT AND MARKETING: The Parties will jointly
determine suggested retail pricing, and maximum edition and order quantities,
with respect to RCCA Branded Products; however, in the event of a disagreement
with respect to such matters the determination of ACTN shall be binding on the
Parties. Designated individual representatives of the Parties will meet no less
often than monthly to discuss such matters, and the development, marketing and
promotion of new RCCA Branded Products generally, including the introduction of
exclusive benefits to RCCA members. The Parties will also consult at such
meetings regarding ACTN's potential acquisition of name, likeness, trademark and
other intellectual property rights from new Underlying Rights Owners and
expansion of rights granted by current Underlying Rights Owners, it being
expressly understood that ACTN shall have sole and exclusive control over all
aspects of such third-party negotiations and such rights will be acquired by
ACTN as sole licensee. Any such rights acquired during the Term shall, as
applied to RCCA Branded Products, be deemed added to the items of Licensed
Property granted to QVC pursuant to the terms of this Agreement.

         4. PAYMENTS AND ACCOUNTINGS:

                  (a) In consideration of its services hereunder, QVC shall be
entitled to retain a percentage of all revenue derived from retail sales of RCCA
Branded Products shipped by QVC (except for sales through QVC on-air and iQVC
sales under subparagraph (b) below), as follows:

                           (i)      Twenty Percent (20%) of revenue for sales
                                    each year up to $35 Million;

                           (ii)     Twenty-Five Percent (25%) of revenue for
                                    sales each year between $35 Million and $60
                                    Million; and

                           (iii)    Thirty Percent (30%) of revenue for sales
                                    each year over $60 Million.

                  (b) In addition, ACTN will sell to QVC at wholesale price
agreed-upon overages of RCCA Branded Products, for resale via QVC on-air or iQVC
online, in either case after the initial sales window reserved to RCCA members
has expired. For purposes hereof, "wholesale price" shall mean suggested retail
price of such merchandise less forty percent (40%). Such merchandise not sold
via QVC on-air or iQVC online shall continue to be governed by subparagraph (a)
above.

                  (c) The foregoing participation schedules shall be inclusive
of all distribution, marketing and other expenses of QVC and the fees and
expenses of any sub-distributor or other party engaged by QVC to assist in the
performance of its obligations hereunder. RCCA Membership fees shall be set by
mutual agreement; however QVC shall be entitled to retain all membership fees
resulting from sales of RCCA memberships during the Term. ACTN and QVC will
design a membership kit (if any membership kit is desired) on a mutually
agreeable basis

                                       3
<PAGE>   4
and ACTN will sell to QVC any merchandise contained therein at the applicable
wholesale price pursuant to the terms of QVC's Consignment Order.

                  (d) ACTN and QVC may agree to include in catalog, online or
other RCCA-related promotional media, non-ACTN branded products for sale to RCCA
members ("Other Products"). The terms of such offers and sales shall be subject
to mutual approval in each instance. In addition, fees, royalties and other
compensation resulting from all RCCA sales activity (but not specifically
attributable to product sales) shall be divided equally.

                  (e) QVC shall maintain accurate records showing the quantity
and sales price of RCCA Branded Products and Other Products sold or otherwise
disposed of by QVC. QVC shall render weekly statements containing good-faith
estimates of all sales activity hereunder. QVC shall render monthly statements
of account relating to the preceding month and shall deliver such statements to
ACTN within fifteen (15) days after the end of each calendar month. QVC shall
make payment to ACTN by wire transfer on Wednesday of each week for estimated
sales of RCCA Branded Products and Other Products by QVC through catalogs for
the preceding fiscal week's end. At the end of each month all such amounts will
be compared to amounts due ACTN for all sales of RCCA Branded Products and Other
Products by QVC in the monthly statement of account, and any differences will be
promptly wire-transferred by the respective party in the event of a discrepancy
after delivery of the monthly statement to which such discrepancy pertains. Such
monthly statements will prepared in accordance with generally accepted
accounting principles and shall include reasonable detail regarding QVC's sales
activity for the relevant period, including without limitation:

                           (i)      the quantity and dollar amounts of RCCA
                                    Branded Products and Other Products sold or
                                    otherwise disposed of during the period,
                                    indicating the nature of such other
                                    disposition;

                           (ii)     the gross invoice price of all RCCA Branded
                                    Products and Other Products sold during the
                                    said quarter and the dollar amounts of all
                                    returns and refundable commissions during
                                    the said period; and

                           (iii)    an itemized statement of revenue due ACTN
                                    for sales made during the said period and
                                    payment of same.

Receipt or acceptance by ACTN of any statements or payments referred to herein
shall not preclude ACTN from questioning the correctness of any such statements
and/or revenues paid or payable for a period of two (2) years from the date of
delivery of such statement and/or payment to ACTN.

                  (f) ACTN may examine the books and records of QVC pertaining
to its sales and other disposition of RCCA Branded Products and Other Products
hereunder, during normal business hours and at reasonable times through ACTN's
own employees or representative(s), to obtain or verify the information
described in subparagraph (d) hereof, but not more than once annually. In the
event that such inspection reveals an underpayment by QVC of the revenues due
ACTN hereunder, QVC shall pay the difference and if it is determined that QVC
has

                                       4
<PAGE>   5
understated the amount due ACTN by five percent (5%) or more, QVC shall
additionally be obligated to pay and shall pay to ACTN the reasonable costs and
expenses directly or indirectly incurred by ACTN in the examination of the books
and records of QVC. In the event that such inspection reveals an overpayment by
QVC of the revenues due ACTN hereunder, ACTN shall pay the difference.

                  (g) All of QVC's records relating to transactions authorized
or arising from this Agreement shall be maintained for a period sufficient for
ACTN to enforce its audit rights provided herein.

         5. TERM; PERFORMANCE STANDARDS:

                  (a) The Term of this Agreement shall be ten (10) years from
the Full Assumption Date, subject to earlier termination pursuant to
subparagraph (b) hereof and Paragraph 12 below.

                  (b) Should QVC fail to generate gross revenues from which QVC
is compensated pursuant to subparagraphs 4(a) and 4(b) of this Agreement of at
least Eighty Million Dollars ($80,000,000) in the aggregate for the first two
(2) years of the Term (i.e., commencing on the Full Assumption Date), either
Party shall have the right to terminate this Agreement; provided, however, that
if gross revenues as aforesaid for such initial two-year period equal at least
Seventy-Eight Million Dollars ($78,000,000), the Agreement will not be
terminable provided QVC reaches its minimum performance standard for the third
year of the Term plus any shortfall below $80,000,000 from the first two years
of the Term. The Parties agree that minimum gross revenues as aforesaid for the
third year of the Term will be Forty-Five Million Dollars ($45,000,000), and
thereafter the applicable minimum gross revenues will increase by five percent
(5%) per year for the remainder of the Term (i.e., $47,250,000 in year 4;
$49,612,500 in year 5; and so forth). Should QVC fail to meet this performance
standard in any two (2) consecutive years of the Term (after the first two years
of the Term), either Party shall have the right to terminate this Agreement. In
addition, if ACTN's net revenues from such sales falls below $30,000,000 for any
year of the Term, ACTN may terminate this Agreement. All termination rights
provided hereunder shall be exercised by notice to the other Party in accordance
with the provisions of Paragraph 12 below. It is understood that ACTN shall be
able to produce Product sufficient for QVC to meet the minimum gross revenue
amounts hereunder.

         6. EXCLUSIVITY; NON-COMPETITION:

                  (a) During the Term hereof, QVC will not perform services
substantially similar to those contemplated by this Agreement for any other
motor sports-themed catalog, website or other organization without ACTN's prior
approval, except for such pre-existing relationships as have been disclosed to
ACTN and which are described in Exhibit C attached hereto. Likewise during the
Term, ACTN will not sponsor or operate any other motor sports-themed fan or
activity club which exists primarily to promote sales of motor sports-themed
merchandise, whether or not such merchandise is substantially similar to
then-current RCCA Branded Products, except for such pre-existing relationships
as have been disclosed to QVC and which are described in Exhibit D attached
hereto. ACTN will not distribute or sell RCCA

                                       5
<PAGE>   6
Branded Products to any party other than QVC. In addition, ACTN will not
distribute or sell, or cause any third party to distribute or sell, Products
(whether or not substantially similar to RCCA Branded Products) through Direct
Response Television during the Term except through QVC, unless QVC 's prior
written approval is obtained in each instance. For purposes of this Agreement,
"Direct Response Television" shall mean any electronic transmission through
which a consumer is requested to purchase any product or service by mail,
telephone or other electronic means, including without limitation televised
electronic retailing programs, infomercials, direct response commercial spots
and any computer-based shopping services (including without limitation online
services). The Parties agree that ACTN's "goracing.com" website or any other
online service owned or directly controlled by ACTN is exempt from the foregoing
restriction. Notwithstanding the foregoing, ACTN may distribute or sell non-RCCA
Branded Products to NASCAR or NASCAR's designated fulfillment source for
purposes of sale solely on nascar.com or any other website entirely owned or
controlled by NASCAR. Under no circumstances, shall ACTN distribute or sell, or
allow any third party to distribute or sell, Products that are endorsed or
branded by an entity whose primary business is televised home shopping programs.

                  (b) In addition, to the extent ACTN has obtained the necessary
rights from the relevant Underlying Rights Owner(s) to create, distribute and
sell a particular RCCA Branded Product or other Products licensed to ACTN by
various Underlying Rights Owners, and to the extent that such RCCA Branded
Product or other Products licensed to ACTN by various Underlying Rights Owners
meet all of QVC's standard product guidelines, ACTN will be the exclusive vendor
to QVC with respect to such RCCA Branded Product or other Products licensed to
ACTN by various Underlying Rights Owners. If at any time during the Term, ACTN's
license from any Underlying Rights Owner with respect to a RCCA Branded Product
or other Products should terminate for any reason other than ACTN's material
breach of its agreement with such Underlying Rights Owner, QVC will not purchase
product substantially similar to the RCCA Branded Product or other Products
licensed to ACTN by various Underlying Rights Owners derived from rights
licensed or otherwise granted by such Underlying Rights Owner for the remainder
of the Term or two (2) years, whichever is the shorter period. In no event will
QVC enter into license agreements directly with any of the Underlying Rights
Owners. If such Underlying Rights Owner alleges material breach on ACTN's part,
QVC will provide notice of same to ACTN, which will have not less than thirty
(30) days from delivery of such notice to provide information to QVC rebutting
such allegation. QVC shall then, within thirty (30) days of delivery of such
information by ACTN, inform ACTN of its conclusion regarding ACTN's alleged
breach, acting in good faith after review of all materials submitted by ACTN. If
QVC concludes that ACTN materially breached its agreement with said Underlying
Rights Owner, it shall so notify ACTN and ACTN shall have a period of thirty
(30) days from delivery of such notice to submit the matter to binding
arbitration before a single arbitrator in a location to be mutually determined
by the Parties and otherwise subject to the rules of the American Arbitration
Association then obtaining.

                                       6
<PAGE>   7
         7. QUALITY STANDARDS: QVC will, prior to publication or other
dissemination of catalogs and other sales materials, and advertising or other
promotional materials, in each case pertaining to RCCA Branded Products or
otherwise utilizing any of the Licensed Property, submit to ACTN for its prior
written approval samples of all such materials. Such samples may consist of
printer proofs, layouts, scripts or other materials reasonably representative of
the final advertising or promotion. Approval by ACTN shall in each instance not
be unreasonably withheld and ACTN will use its best efforts in each instance to
insure prompt approval. Previously approved material may be re-broadcast,
reprinted or otherwise re-used without the aforementioned approval by ACTN,
except as ACTN may otherwise advise QVC.

         8. ACKNOWLEDGMENT OF RIGHTS: QVC acknowledges the existence, validity,
enforceability and ACTN's ownership, or authorized use, of the Licensed
Property, and any trademark, copyright and related intellectual property rights
therein, and that as between the Parties ACTN has the exclusive rights in the
Licensed Property set forth herein. QVC shall not contest or oppose in any
fashion the existence, validity, enforceability or ACTN's ownership, or
authorized use, of the Licensed Property, any portion thereof, or any trademark,
copyright or related intellectual property rights therein. QVC further
acknowledges that any unauthorized use of any or all of the Licensed Property
will result in irreparable harm to ACTN, and that ACTN shall be entitled to
injunctive relief from any such unauthorized use by QVC or its agents or
representatives.

         9. REPRESENTATIONS, WARRANTIES AND INDEMNITIES:

                  (a) ACTN represents and warrants that: (i) it has the full
power to enter into this Agreement and to fully perform its obligations
hereunder, (ii) that it is the sole owner of, or otherwise authorized to grant
rights to, the Licensed Property granted to QVC hereunder, (iii) each Product
shall comply with all foreign, federal, state, county, municipal or other
statutes, laws, orders, and regulations of any governmental or
quasi-governmental entity, and (iv) QVC's promotion of the Products, as
permitted hereunder, will not infringe or otherwise violate the copyrights,
trademarks, or other proprietary rights of third parties or constitute unfair
competition. ACTN agrees to defend, indemnify, and hold harmless QVC and its
directors, officers, employees, agents, and representatives from and against any
and all losses, expenses, damages, liabilities, and claims arising from ACTN's
breach of the above warranties, or of any of its other obligations under this
Agreement. Notwithstanding the foregoing, in no event shall ACTN have any
liability for loss to QVC due to consequential damages. These obligations of
ACTN shall survive termination of this Agreement.

                  (b) QVC represents and warrants that it has the full power to
enter into this Agreement and to fully perform its obligations hereunder. QVC
agrees to defend, indemnify, and hold harmless ACTN and its directors, officers,
employees, agents, and representatives from and against any and all losses,
expenses, damages, liabilities and claims arising out of or relating to (i) the
sale, use, advertising, promotion, or distribution of RCCA Branded Products and
Other Products, or (ii) QVC's breach of its representations, warranties,
covenants, terms, conditions, or obligations under this Agreement.
Notwithstanding the foregoing, in no event shall QVC have any liability for loss
to ACTN due to consequential damages. These obligations of QVC shall survive
termination of this Agreement.

                                       7
<PAGE>   8
         10. LITIGATION:

                  (a) QVC recognizes the importance of the Licensed Property and
the exclusivity and non-competition provisions of paragraph 6 herein to the
operations and activities of ACTN and that monetary damages may not adequately
protect or recompense ACTN in the event of QVC's unauthorized use of the
Licensed Property or violation of such exclusivity and non-competition
provisions. Therefore, QVC acknowledges that ACTN may seek, in addition to any
other legal or equitable remedies available to it, injunctive or other relief
against QVC to prevent QVC's unauthorized use of the Licensed Property or
violation of such exclusivity and non-competition provisions. QVC agrees to be
bound by the imposition of such injunctive or other relief.

                  (b) ACTN recognizes the importance of the exclusivity and
non-competition provisions of paragraph 6 herein to the operations and
activities of QVC and that monetary damages may not adequately protect or
recompense QVC in the event of ACTN's violation of such exclusivity and
non-competition provisions. Therefore, ACTN acknowledges that QVC may seek, in
addition to any other legal or equitable remedies available to it, injunctive or
other relief against ACTN to prevent ACTN's violation of such exclusivity and
non-competition provisions. ACTN agrees to be bound by the imposition of such
injunctive or other relief.

                  (c) ACTN shall at all times have the right to protect the
Licensed Property, including the defense of any trademark infringement action or
any legal or equitable action to enforce any item of the Licensed Property. In
that event, QVC shall provide ACTN, at ACTN's cost, all reasonable assistance
requested by ACTN in connection with such action or proceeding. If the parties
agree to joint representation in any infringement suit or other action with
respect to the Licensed Property, the respective responsibilities of the
parties, their contributions to the costs, and their share in any recoveries,
will be agreed upon in writing prior to undertaking such action. Notwithstanding
the foregoing, if QVC desires to initiate litigation, whether legal or
equitable, in order to protect any or all of the Licensed Property, and ACTN
declines to commence such litigation, QVC shall be entitled in ACTN's name to
commence and prosecute litigation at the QVC's expense, and shall be entitled to
all monetary damages and other benefits received as a result thereof. ACTN shall
cooperate with QVC in the prosecution of such litigation. QVC and ACTN shall
promptly advise the other if they become aware of the use of any name, likeness,
trademark or other item of intellectual property similar to any item of the
Licensed Property in association with any goods similar to the RCCA Branded
Products.

         11. INSURANCE:

                  (a) ACTN will provide QVC with proof of commercial general
liability insurance, including product liability and contractual liability
coverage, providing protection against any and all claims, demands or damages
(including attorney's fees) arising out of any alleged defect in any RCCA
Branded Products or Other Products covered by this Agreement, or any use
thereof, of not less than One Million Dollars ($1,000,000) per claim with an
aggregate limit of Two Million Dollars ($2,000,000) in any year, with QVC named
as an additional insured party.

                                       8
<PAGE>   9
                  (b) QVC will provide ACTN with proof of commercial general
liability insurance, including errors & omissions and contractual liability
coverage, providing protection against any and all claims, demands or damages
(including attorney's fees) arising out of QVC's promotion, distribution and
sale of RCCA Branded Products or Other Products, or any other actions of QVC
arising from this Agreement, of not less than One Million Dollars ($1,000,000)
per claim with an aggregate limit of Two Million Dollars ($2,000,000) in any
year, with ACTN named as an additional insured party.

                  (c) Each Party shall forward to the other Party once each year
proof of the aforementioned insurance coverage, and that such is in full force
and effect. Certificate(s) must state that the company will give the other Party
thirty (30) days advance notice of any reduction or cancellation in such
insurance. Each Party shall notify the additionally insured Party immediately of
any claims made under its insurance policies evidenced by the certificates of
insurance.

         12. TERMINATION:

                  (a) Either Party may terminate this Agreement after the
initial two (2) years of the Term in the event the performance standards of
subparagraph 5(b) are not achieved, notice of such termination to be given no
later than April 1 for termination to be effective as of December 31 of that
year. During the nine (9) month period between delivery of notice and the
effective date of termination, the Parties will arrange in good faith for return
of remaining inventory in QVC's possession to ACTN.

                  (b) Either Party may terminate this Agreement at any time in
the event of material breach by the other Party of its obligations hereunder;
provided, however, that the non-breaching Party shall deliver notice of such
breach to the breaching Party and the breaching Party shall have a period of
thirty (30) days (or in the event of a default in payment, 10 days) to cure such
breach.

         13. CONFIDENTIALITY: The Parties acknowledge that, in the course of
performing under this Agreement, each Party will be exposed to certain
confidential and proprietary information of the other Party. Each of the Parties
agrees to hold all such information in strict confidence; to disseminate such
information within its organization only as widely as reasonably necessary to
effectuate the purposes of this Agreement; and not to disclose any such
information, except in accordance with the terms of this Agreement or as
required by law, regulation or court order. Upon termination of this Agreement
for any reason, each Party will promptly return to the other Party all materials
embodying such confidential information. Without limitation of the foregoing, it
is acknowledged that the Database and all other RCCA membership lists in any
form whatsoever represent confidential information of ACTN and shall be returned
to ACTN upon termination hereof.

         14. PUBLICITY: The Parties will mutually coordinate all aspects of
publicity concerning the matters contemplated by this Agreement. Without
limitation of the foregoing, it is expressly understood that neither Party will
distribute any press release or make any other public statement

                                       9
<PAGE>   10
regarding the execution of this Agreement or the matters contemplated herein,
without the prior approval of the other Party. Notwithstanding the foregoing,
ACTN shall have the right to disclose such information as may be necessary for
compliance with applicable securities law.

         15. NOTICES: All notices and reports in connection with this Agreement
and payments required hereunder shall be in writing and shall be given by
postpaid registered or certified mail, return receipt requested, or facsimile
transmission followed by hard copy, addressed, if to ACTN, to R. David Martin,
Chief Financial Officer; and if to QVC, to Executive VP-Merchandising, with
copies to Neal Grabell, Esq., General Counsel; in each case to the address first
given above or to such other address as either party may notify in writing to
the other party. Notice shall be deemed given on date mailed or date transmitted
via facsimile.

         16. NO ASSIGNMENT: Neither Party shall have the right to sell, assign
or otherwise transfer any right or obligation hereunder without the prior
written consent of the other Party.

         17. MISCELLANEOUS: This Agreement constitutes the entire agreement
between the Parties with respect to the subject matter thereof and supersedes
all prior writings or understandings with respect to the subject matter thereof.
The provisions of this Agreement may not be waived, modified, altered or amended
except by written document signed by both Parties. Failure of either Party to
insist upon strict performance of any covenants, terms or conditions of this
Agreement, or to exercise any rights or remedies upon default, shall not
constitute a waiver or relinquishment of its right to insist upon strict
compliance with this Agreement and to enforce all legal and equitable rights as
to any such default or breach, whether of like or unlike kind. In the event any
arbitration proceeding, lawsuit, cause of action or collection proceeding to
enforce the terms of this Agreement is commenced by either Party hereto, for any
reason, the prevailing Party in any such proceeding shall be entitled to recover
from the non-prevailing Party its actual attorney's fees and costs expended in
pursuit of or in defense of such claim, action, or proceeding. This Agreement
does not constitute an agency, partnership, or joint venture between the
Parties. This Agreement and all its provisions are intended to be severable.
Should a term or provision hereof be unenforceable, the remaining terms and
provisions shall continue to be binding. Section headings used in this Agreement
are for convenience only and shall not be used in the construction or
interpretation of this Agreement. This Agreement shall be governed by the laws
of the State of Delaware applicable to contracts to be performed entirely within
such State.

         18. MORE FORMAL AGREEMENT: The Parties may subsequently elect to enter
into a more formal agreement, not conflicting with any of the terms and
conditions of this Agreement but incorporating additional customary terms and
conditions. Until such time as such agreement is negotiated and executed by both
Parties, this Agreement shall remain fully binding on the Parties.

                                       10
<PAGE>   11
         IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date first written above.

                                      ACTION PERFORMANCE COMPANIES, INC.

                                      By: /s/ Fred W. Wagenhals
                                         -------------------------------------
                                         C.E.O

                                      QVC, INC.

                                      By: /s/ Darlene Daggett
                                         -------------------------------------
                                         EVP/Merchandising

                                       11
<PAGE>   12
                                    EXHIBIT A

                              RCCA Branded Products

         1:64th  Hood Open
         1:64th  Total View
         1:64th  Elite
         1:24th  Clear Window Bank
         1:24th  Clear Car (Paint on 1/2 side)
         1:24th  Elite
         1:24th  Funny Car
         1:24th  Dragster
         1:12th  Polystone
         1:32nd  Ceramic Scene
<PAGE>   13
                                   EXHIBIT B

                               Licensed Property

Earnhardt, Dale              The likeness of Dale Earnhardt and the #3 race car
                             displaying the Richard Childress Racing, Inc.
                             trademark driven by Dale Earnhardt, and the Dale
                             Earnhardt registered trademarks are used under the
                             administration of Dale Earnhardt, Inc.

                             The likeness of the #3 race car, stylized #3 and
                             the "RCR" checkered flag logo design are trademarks
                             of Richard Childress Racing Enterprises, Inc. and
                             are used under license from Richard Childress
                             Racing Enterprises, Inc.

                             The Trademarks "Goodwrench" and "GM" are used under
                             license from General Motors Corporation.

Earnhardt, Dale Jr.          The name and likeness of Dale Earnhardt Jr. are
                             licensed under the authority of Dale Earnhardt,
                             Inc.

                             (c) 2000 Anheuser-Busch, Inc.

Gordon, Jeff                 (c) 2000 JG Motorsports, Inc. The name and likeness
                             of Jeff Gordon and the likeness of the #24 Dupont
                             Automotive Finishes Chevrolet are used under
                             license granted by JG Motorsports, Inc.

                             PEPSI, PEPSI-COLA and the Pepsi globe design are
                             registered trademarks of PepsiCo, Inc.

Jarrett, Dale                Quality Care and Ford Credit are used under license
                             from Ford Motor Company. Dale Jarret and Robert
                             Yates Racing trademarks are used by permission of
                             Action Performance Companies, Inc.

Wallace, Rusty               Licensed by Rusty Wallace, Inc. and Penske Racing
                             South, Inc.

Stewart, Tony                "Tony Stewart(TM)", "Joe Gibbs Racing(R)",
                             "#20(TM)" and "The Home Depot(R)" licensed under
                             authority of Redline Sports Marketing, Inc.,
                             Huntersville, NC.

Labonte, Bobby               "Bobby Labonte(TM)", "Joe Gibbs Racing(R)",
                             "#18(TM)" and "Interstate(R)Batteries" licensed
                             under authority of Redline Sports Marketing, Inc.,
                             Huntersville, NC

Labonte, Terry               Terry Labonte, Hendrick Motorsports and Kellogg
                             Company marks are used under license granted by
                             Kellogg Company and Hendrick Motorsports, TM, (c)
                             2000 Kellogg Company.

Mayfield, Jeremy             The right to use the name, likeness and image of
                             Penske-Kranefuss Racing's #12 Mobil 1 car and
                             Jeremy Mayfield are granted under license from the
                             team owner, driver and sponsor and may not be
                             reproduced without the written consent of Penske
                             Performance South, Inc.
<PAGE>   14
Skinner, Mike     The likenesses of #31 race car, the "RCR" Richard Childress
                  Racing checkered flag logo, and the stylized "31" are
                  trademarks of Richard Childress Racing Enterprises, Inc. and
                  along with the likeness and signature of Mike Skinner
                  (trademarks of Mike Skinner) and the Team Lowe's and Lowe's
                  Home Improvement Warehouse trademarks (trademarks of Lowe's
                  Companies) are used under license from Richard Childress
                  Racing Enterprises, Inc.

Atwood, Casey     "Casey Atwood name and likeness, Brewco Motorsports, Inc.,
                  marks and sponsors marks licensed by Brewco Motorsports, Inc.,
                  Central City, Kentucky."

Grubb, Kevin      "Kevin Grubb name and likeness, Brewco Motorsports, Inc.,
                  marks and sponsors marks licensed by Brewco Motorsports, Inc.,
                  Central City, Kentucky."

Burton, Ward      The trademarks of "Bill Davis Racing", the number 22, Ward
                  Burton's likeness and Ward Burton's signature are licensed
                  under the permission of SCM Marketing Ltd., Winston-Salem, NC.

MB2 Motorsports   (c) 2000 MB2 Motorsports

Rudd, Ricky       Texaco, Robert Yates Racing and Ricky Rudd are used under
                  license.

Force, John       John Force and all logos and likenesses are trademarks
                  exclusively licensed to John Force Racing, Inc.

Elliott, Bill     Bill Elliott name and likeness licensed by CMG Worldwide,
                  Indianapolis, IN.
                  (c) 2000 McDonald's Corporation
                  "COCA-COLA" is a trademark of the Coca-Cola Company.

Park, Steve       The name and likeness of Steve Park are licensed under
                  authority of Dale Earnhardt, Inc. Pennzoil(R) is a registered
                  trademark of Pennzoil-Quaker State Co.

Hamilton, Bobby   Bobby Hamilton name and likeness and KODAK, MAX and trade
                  Dress are trademarks licensed to Action Performance Companies,
                  Inc. by Eastman Kodak Company.

Unser Jr., Al     The likeness and signature of Al Unser Jr. are properties and
                  are used under license from AUJ Motorsports, Inc. The likeness
                  of the Galles ECR Racing race car are properties and are used
                  under license from Galles ECR Racing, LLC.

Nadeau, Jerry     Hendrick Motorsports and Jerry Nadeau Trademarks are used with
                  permission or under license by Hendrick Motorsports.

Lapage, Kevin     "Kevin Lapage name and likeness, Brewco Motorsports, Inc.,
                  marks and sponsors marks licensed by Brewco Motorsports, Inc.,
                  Central City, Kentucky."

Other Drivers     All driver names, likenesses, and other trademarks and
                  copyrights are used under license or with permission.

<PAGE>   15
Chevrolet           "CHEVROLET, Chevrolet "Bow Tie", Chevrolet Racing and Monte
                    Carlo emblems and body designs are trademarks of Chevrolet
                    Motor Division, General Motors Corporation, used under
                    license to Action Performance Companies, Inc."

Ford                The trademarks "Ford", "Taurus", "Motorcraft" and Ford Truck
                    name and Aeromax logos are owned and used under license from
                    Ford Motor Company.

Pontiac             Pontiac, the Pontiac "Arrowhead" emblem and Grand Prix are
                    trademarks of and used under license from General Motors
                    Corporation.

NASCAR              NASCAR is a registered trademark of The National Association
                    for Stock Car Auto Racing, Inc.

General Motors      GM trademarks used under license.

RCCA                Racing Collectables Club of America (RCCA) is a trademark of
                    Racing Collectables Club of America, Inc.
<PAGE>   16
                                   EXHIBIT C

                 QVC PRE-EXISTING MOTOR-SPORTS SALES AGREEMENTS

To the extent QVC's existing relationships with the following entities are
deemed to be governed by paragraph 6(a) of the Agreement, QVC discloses the
following relationships (provided such disclosure shall not be deemed an
admission that any of the following relationships would be subject to paragraph
6(a) of the Agreement):

         1.       TSI

         2.       Concept One International, Inc.

         3.       ESPN

                                       14
<PAGE>   17
                                   EXHIBIT D

                      ACTN PRE-EXISTING MOTOR SPORTS CLUBS

1.       Drivers fan clubs

2.       NASCAR fan club

3.       Activities by ACTN's 80%-owned German subsidiary

                                       15
<PAGE>   18
                                    EXHIBIT E

                          FORM OF QVC CONSIGNMENT ORDER

                                       16
<PAGE>   19
THIS CONSIGNMENT ORDER ("Order") IS EXPRESSLY CONDITIONED ON ACCEPTANCE OF THE
TERMS AND CONDITIONS HEREOF. Oral or written notice of acceptance by Consignor,
preparation to perform by Consignor and/or shipment of all or any part of the
merchandise specified in this Order ("Merchandise") shall constitute acceptance
by Consignor of the terms and conditions contained herein. BY ACCEPTANCE OF THIS
ORDER, CONSIGNOR REPRESENTS AND AGREES AS FOLLOWS:

1. Consignor will ship to a warehouse designated by Consignee (the "Warehouse")
the Merchandise on the terms specified herein. All Merchandise shall be held on
consignment at the Warehouse at Consignor's risk. From time to time, Consignee
may withdraw Merchandise from consigned stock at the Warehouse and take delivery
thereof by packaging Merchandise for delivery to Consignee's identified
customers. Upon each such withdrawal, title to the Merchandise so withdrawn
shall pass to Consignee at the prices and on the terms and conditions herein.

2. Consignor hereby grants to Consignee the irrevocable right, by all means now
or hereafter existing, to: (a) market, promote the sale of and sell the
Merchandise; (b) use the trademarks, trade names, service marks, patents and
copyrights (collectively the "Marks") registered, owned, licensed to or used by
Consignor in connection with the Merchandise; (c) use, perform, play,
synchronize and/or demonstrate, as applicable, the Merchandise, its contents,
and/or any promotional, advertising or similar material supplied by Consignor
for use in connection with such Merchandise ("Promotional Material"); and (d)
use the names, photographs, likenesses, voices and/or biographies of any
individuals performing in or otherwise associated with the production of the
Merchandise as contained in the Merchandise, its contents and/or any
Promotional Material. Consignee makes no representations with regard to the
number of times, if any, that Merchandise will be marketed, promoted or sold by
Consignee.

3. In addition to and without prejudice to any and all other warranties, express
or implied by law, Consignor represents, warrants and covenants to Consignee
that: (a) Consignor possesses all licenses, permits, rights, powers and consents
required to enter into and perform this Order, to sell to Consignee the
Merchandise referenced herein and to grant to Consignee the rights granted
herein; (b) Consignor's performance hereunder does not violate any agreement,
instrument, judgment, order or award of any court or arbitrator; (c) all
Merchandise furnished hereunder, including the production, sale, packaging,
labeling, safety, testing, importation and transportation thereof, and all
representations, advertising, prices, and allowances, discounts or other
benefits made, offered or authorized by Consignor in connection therewith, shall
at all times comply with all applicable federal, state, local, industry and
foreign statues, laws, rules, regulations, orders, standards and guidelines
(collectively, "Laws"); (d) where applicable, reasonable and representative
tests as prescribed by Laws or governmental authorities have been performed or
will be performed before shipment from Consignor to the Warehouse; (e) all
Merchandise furnished hereunder shall be new, first quality merchandise and
conform to all representations by Consignor, instructions, specifications, and
samples, shall be free from all defects (including latent defects) in
workmanship, material and design, and shall not be reworked, rebuilt or
refurbished merchandise; (f) all manufacturers' warranties are effective and
enforceable by Consignee and its customers; (g) all Marks which are part of
or appear in connection with the Merchandise and/or Promotional Material, and/or
any component thereof, are valid and genuine, and the sale, promotion of the
sale and performance of the Merchandise and/or Promotional Material, and/or any
component thereof, will not infringe upon any domestic or foreign Marks, rights
of privacy or publicity and/or any other third party rights, or cause Consignee
to be liable to Consignor or any third party for any additional fees, costs or
expenses; (h) the title of Consignor to the Merchandise is good and free and
clear of all encumbrances and liens, and its transfer hereunder rightful; (i)
neither the Merchandise nor any component part thereof is subject to any import
quota restriction, rule or regulation preventing or forbidding the importation,
use, promotion for sale or sale of the Merchandise or any component part
thereof, or any duty, tariff, or penalty in connection therewith, except as
previously disclosed in writing by Consignor to Consignee; (j) the Merchandise
and similar goods are not and have not been subject to product liability or
infringement claims, except as disclosed on the face hereof; (k) Consignor shall
maintain for the life of the Merchandise general liability insurance coverage on
the Merchandise, including full product liability, infringement and advertising
injury, in amounts no less than One Million Dollars per occurrence, unless
otherwise specified on the face hereof, with carriers acceptable to Consignee,
and which shall include broad form vendor's coverage in favor of Consignee, and
Consignor will promptly provide Consignee with a certificate of insurance naming
Consignee as an additional insured; and (l) the same or similar merchandise is
not being and will not be offered to any other consignee or purchaser at a
lesser cost or under more favorable terms than appear herein.
<PAGE>   20
Consignor agrees to provide Consignee with any and all documents requested or
required by Consignee at any time and from time to time to support the
representations, warranties and covenants herein contained.

4. Consignor hereby agrees to protect, defend, hold harmless and indemnify
Consignee, its subsidiaries and affiliates, and each of their respective
customers, programming and other distributors, employees, agents, officers,
directors, successors and assigns, from and against any and all claims, actions,
suits, costs, liabilities, damages and expenses (including, but not limited to,
reasonable attorneys' fees) based upon or resulting from: (a) any alleged or
actual infringement of any Marks, rights of publicity or privacy and/or any
other third party rights arising from the sale, promotion of the sale and/or
performance of the Merchandise, its contents and/or the Promotional Material;
(b) any alleged or actual defect in any of the Merchandise; (c) any alleged or
actual injury or death to person or damage to property arising our of the
furnishing, use or performance of the Merchandise; (d) breach by Consignor of
any representations, warranties or covenants; and (e) any alleged or actual
violation by Consignor and/or the Merchandise of any applicable Laws. In the
event Consignee notifies Consignor in writing of a claim, demand, action, suit
or other matter ("Claim") to which the foregoing indemnity applies, Consignor
shall provide prompt assurance of its ability to so indemnify Consignee, to
Consignee's reasonable satisfaction, and Consignor shall commence to defend such
Claim, at its sole cost and expense, within five (5) days after receiving
Consignee's written notice. If Consignor fails to provide such assurance or
fails to commence such defense within such five (5)-day period, Consignee may,
at its option, assume the defense or settlement of such Claim in its own name
and all recoveries from such Claim shall belong to Consignee. In the latter
event, which shall be in addition to any and all other rights Consignee may have
at law or in equity, Consignee may elect counsel to represent it, and Consignor
shall be solely responsible for the payment or reimbursement, at Consignee's
option, of counsel fees and all other fees and costs incurred in defending such
Claim, for any and all damages arising thereunder, and for any and all amounts
paid by Consignee in settlement thereof.

5. Time is of the essence. Consignee reserves the right to cancel this Order or
any part hereof, with no liability or obligation to Consignor, in the event;
(a) Consignee is notified that any Merchandise or Mark infringes or is alleged
to infringe upon any third party rights; (b) Consignor breaches or is
anticipated to breach this Order; (c) Merchandise conforming to specifications
will not be delivered or arrive at the Warehouse on the dates and in the
quantities specified on the face hereof; (d) fire, flood, windstorm,
earthquake, war, strike, or any other casualty or occurrence of a similar
nature substantially and adversely affects Consignee's premises or business; or
(e) any substantial change to Consignee's business (for whatever reason) occurs.

6. Merchandise shipped or delivered to the Warehouse prior to the first
permitted ship or delivery date specified on the face hereof, may, at
Consignee's option be returned to Consignor, at Consignor's risk and expense,
and upon such return, shall be held by Consignor for Consignee until shipment
or delivery on the specified date. Merchandise shipped or delivered to the
Warehouse after the last permitted ship or delivery date specified on the face
hereof may, at Consignee's option, be returned to Consignor, at Consignor's
risk and expense, and upon such return. Consignee may cancel this Order, in
whole or in part, without liability or the Merchandise may be held by Consignee
on consignment hereunder. Unless otherwise stated on the face hereof, Consignor
shall ship the Merchandise in one shipment. In the event of shipment or receipt
of an unauthorized quantity, Consignee may, at its option, either reject or
accept the entire shipment unless partial shipments are authorized on the face
hereof. Additional freight charges resulting from partial shipments shall be
borne by Consignor. Partial shipments shall not cause Consignor's obligations
to become severable. Unless otherwise stated on the face hereof, Consignor
shall pay or reimburse Consignee, at the direction of Consignee, for all
freight, packing and insurance incident to the shipment of the Merchandise,
including, but not limited to, loading and unloading charges, mileage charges,
taxes, tolls and other fees. Consignor agrees to follow Consignee's
instructions with respect to shipment, routing and packaging. Consignor's
failure to comply with the terms and conditions set forth in this Section or in
Consignee's shipping regulations (including chargeback program) ("Regulations")
or in any applicable standards provided by Consignee to Consignor ("Standards"),
in effect as of the date of this Order, and which are incorporated herein by
reference, may, at Consignee's option, result in the imposition of charges as
set forth in such documents. Any such charges assessed may be deducted from any
amounts due or which may become due to Consignor. Copies of the Regulations and
the Standards are available to Consignor upon written request to Consignee.

7. Merchandise furnished hereunder which is not in compliance with this Order,
the Regulations or the Standards, which is returned by any of Consignee's
customers for any reason, which fails to meet Consignee's quality control
tests, which fails to
<PAGE>   21
meet Consignee's carrier's quality, drop or other tests, or which is or may be
used in conjunction with merchandise furnished and rejected (or acceptance
thereof revoked) under this Order or another order, may be rejected (or
acceptance thereof by Consignee revoked) at Consignee's option and returned to
Consignor. All expense of unpacking, examining, repacking, storing, returning
and reshipping any Merchandise rejected (or acceptance of which has been
revoked) as aforesaid shall be at Consignor's expense and risk. With respect to
such returned Merchandise, Consignee shall, at its option, receive a credit or
refund of all amounts paid by Consignee for such Merchandise, including, without
limitation, in-bound freight charges (notwithstanding contrary Freight Terms, if
any, set forth on the face hereof). In the event that Consignee shall opt to
receive a refund, Consignor shall pay Consignee in immediately available funds
within fifteen (15) days of Consignee's request. In the event that Consignee
shall opt to receive a credit, Consignee may apply such a credit toward any
amounts due or which may become due to Consignor. Upon receipt by Consignee of
returns from its customers, title and risk of loss to such returned Merchandise
shall immediately revert to Consignor. Consignor agrees that Merchandise
rejected or returned for any reason pursuant to the terms of this Order, whether
or not such rejection is disputed by Consignor, will not be resold or otherwise
distributed by Consignor unless all labels and other characteristics identifying
Consignee and/or displaying any trade name or trademark of Consignee have been
first removed. Authorization is granted to Consignee to return Merchandise
without additional authorization, and Consignor hereby agrees to accept such
returns even without Consignee's request for return authorization labels.
Merchandise returned or rejected by Consignee is not to be replaced by Consignor
without the prior written approval of Consignee. Consignor acknowledges that the
Consignee does not inspect each item at receipt of Merchandise and that defects,
imperfections or nonconformity with any representations, warranties or covenants
set forth herein may not be discovered by Consignee until Merchandise shall have
been purchased by its customers and returned to Consignee. Consignee's
inspection, discovery of a breach of warranty, failure to make an inspection or
failure to discover a breach of warranty shall not constitute a waiver of any of
Consignee's rights or remedies whatsoever.

8.  Consignee may, at any time, elect to return to Consignor all or any portion
of the Merchandise held on consignment hereunder. Consignee shall give notice
to Consignor of Consignee's election to make such return, and Consignee shall,
without the requirement of any return authorization, return such Merchandise or
portion thereof to Consignor at Consignee's expense and Consignor shall accept
such Merchandise.

9.  Consignor shall not assign this Order, or any part hereof, without the prior
written consent of Consignee, and any such attempted assignment shall be void at
the election of Consignee. All claims for money due or to become due from
Consignee shall be subject to deduction by Consignee for any set-off or
counterclaim arising out of this Order or any other of Consignee's orders or
agreements with Consignor, whether such set-off or counterclaim arose before or
after any assignment by Consignor.

10. Until date of purchase by Consignee, Consignor shall meet its lower prices
and the lower prices of legitimate competition, or accept cancellation at
Consignee's option. Consignee, in its sole discretion, shall determine the price
at which Merchandise shall be offered for sale to its customers and shall retain
all handling and shipping charges collected from its customers.

11. Prior to the thirtieth (30th) day of each month, Consignee shall remit
payment to Consignor for Merchandise sold and shipped by Consignee to its
customers during the previous month, less the Reserve (as defined below), and
adjusted for any credits, debits, customer returns, refunds, and allowances. If
a percentage greater than zero is indicated in the "Payment Reserve" designation
on the face hereof, then Consignee will withhold an amount equal to such
percentage of the gross monthly sales (the "Reserve") from each such monthly
payment to Consignor. The amount so withheld shall be applied toward actual
Consignee customer returns occurring during the succeeding calendar month. In
the event that actual returns during such period exceed the Reserve deducted in
the prior month, such excess amount shall, at Consignee's option, be immediately
debited against Consignor's account with Consignee or paid by Consignor to
Consignee within fifteen (15) days of receipt of Consignee's request for such
payment. In the event that actual returns during such period are less than the
Reserve deducted in the prior month for such returns, the balance of the Reserve
remaining at the conclusion of such period shall, at Consignee's option, be
credited to Consignor's account or paid to Consignor. Neither the arrival of the
Merchandise at the Warehouse, nor payment hereunder, shall constitute acceptance
of Merchandise, and such arrival or payment is without prejudice to any and all
claims of Consignee against Consignor.

12. At Consignee's request, Consignor agrees to meet with Consignee or its
agents at a location determined by Consignee to reconcile Consignor and
Consignee records regarding Merchandise. In the
<PAGE>   22
event that Consignor fails for any reason to attend such meeting, or in the
event that Consignee shall not request that a meeting be held, Consignee shall
submit its reconciliation report to Consignor. Any discrepancy must be
reconciled within thirty (30) days from the date of the reconciliation meeting
or within thirty (30) days from the date of Consignor's receipt of Consignee's
reconciliation report (whichever shall apply) and a reconciliation statement
must be signed within such thirty (30) day period. Should the parties fail to
sign a reconciliation statement within such period of time, Consignee's records
shall be binding on the parties.

13. For purposes of this Order, "Confidential Information" means any agreement
between Consignee and Consignor, all information in whatever form transmitted
relating to the past, present or future business affairs, including without
limitation, the sale of Merchandise, customer lists and other customer
information, research, development, operations, security, broadcasting,
merchandising, marketing, distribution, financial, programming and data
processing information of Consignee or another party whose information Consignee
has in its possession under obligations of confidentiality, which is disclosed
by Consignee, its subsidiaries, affiliates, employees, agents, officers or
directors to Consignor or which is produced or developed during the working
relationship between the parties. Confidential Information shall not include any
information of Consignee that is lawfully required to be disclosed by Consignor
to any governmental agency or is otherwise required to be disclosed by law,
provided that before making such disclosure Consignor shall give Consignee an
adequate opportunity to interpose an objection or take action to assure
confidential handling of such information. Consignor shall not disclose any
Confidential Information to any person or entity except employees of Consignor
as required in the performance of their employment-related duties in connection
with this Order, nor will Consignor use the Confidential Information for any
purpose other than those purposes expressly contemplated herein. Consignor shall
not use any information obtained from Consignee's customers (e.g., through
warranty cards or otherwise) to offer for sale to such customers any goods or
services. Consignor shall not include with any Merchandise, any information that
would enable Consignee's customers to acquire, either directly or indirectly,
any additional merchandise from persons other than Consignee, without first
obtaining Consignee's written consent. In the event of a breach or threatened
breach of this Section by Consignor, Consignee shall be entitled to obtain from
any court of competent jurisdiction, preliminary and permanent injunctive
relief,  including, but not limited to, temporary restraining orders, which
remedy shall be cumulative and in addition to any other rights and remedies to
which Consignee may be entitled. Consignor agrees that the Confidential
Information referred to in this Section is valuable and unique and that
disclosure or use thereof in breach of this Section will result in immediate
irreparable injury to Consignee. Consignor shall inform those persons or
entities having access or exposure to Confidential Information hereunder, of
Consignor's obligations under this Section.

14. This Order shall be governed by the laws of the Commonwealth of Pennsylvania
applicable to contracts to be performed wholly therein, regardless of place of
acceptance. Consignor and Consignee expressly exclude the application of the
United Nations Convention on Contracts for the International Sale of Goods, if
applicable. Consignor hereby consents to the exclusive jurisdiction of the state
courts of the Commonwealth of Pennsylvania for the County of Chester and the
federal courts for the Eastern District of Pennsylvania in all matters arising
hereunder. Consignor hereby irrevocably agrees to service of process by
certified mail, return receipt requested, to its address as set forth on the
face of this Order or to such other address as Consignor may deliver to
Consignee in writing.

15. Consignor shall include the value of all consigned stock in any tax return
of personal property required to be filed with the local taxing authority and
Consignor shall pay the taxes applicable thereto.

16. No waiver by Consignee of any term, provision or condition hereof shall be
deemed to constitute a waiver of any other term, provision or condition of this
Order, or a waiver of the same or of any other term, provision or condition with
regard to subsequent transactions or subsequent parts of the same transaction,
including without limitation, subsequent shipments under this Order.

17. If any provision contained in this Order shall be determined to be
unenforceable or prohibited by law, then such provision shall be void, and the
remaining provisions herein shall not in any way be affected or impaired
thereby.

18. Consignor shall not issue any publicity or press release regarding
Consignee or Consignee's activities hereunder without first obtaining
Consignee's prior written approval and consent to such release.

19. This Order and any other written warranties and specifications, the
Regulations and Standards, and the terms, conditions and agreements herein and
therein, constitute the full understanding of the parties hereto and a complete
and exclusive statement of the terms of the parties' agreement concerning the
Merchandise furnished hereunder.
<PAGE>   23
20. No condition, understanding or agreement purporting to modify or vary the
terms of this Order shall be binding unless hereafter made in writing and duly
executed by the party to be bound, and no modification shall be effected by the
acknowledgment or acceptance of this Order or of invoices, shipping documents or
other documents containing terms or conditions at variance with or in addition
to those set forth herein.

21. Notwithstanding any legal presumption to the contrary,the covenants,
conditions, representations, indemnities and warranties contained in this Order,
including, but not limited to Sections 3, 4, 7 and 13 hereof, shall survive
inspection, delivery, acceptance and payment, shall be binding upon Consignor
and its successors and permitted assigns, and shall run in favor of Consignee
and its successors and assigns.

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