Safety Act Violations

In a Consent Order executed on July 8, 2015, Forest River, Inc. ("Forest River") admitted that it violated the Safety Act by: failing to submit accurate early warning reports; not filing certain field communications or reports of Canadian safety campaigns; not providing copies of notices, bulletins, and other communications as required; failing to file certain quarterly recall reports in a timely manner or with complete information; sending notices to dealers without required information; failing to submit communications to manufacturers, dealers, owners and purchasers directly related to a defect or noncompliance; failing to notify vehicle owners and dealers of defects and noncompliances; not timely notifying NHTSA of safety-related defects within five days; failing to conduct timely recalls for Recall Nos. 15V-080 and 15V-156; and failing to respond fully to NHTSA's October 2, 2014 Special Order by the deadline. As part of the Consent Order, NHTSA assessed a total civil penalty of $35 million against Forest River for its violations of the Safety Act. The civil penalty consists of a cash payment and stipulated penalties. Forest River paid the $5 million cash penalty on July 17, 2015. Forest River is required to retain an independent monitor to conduct audits of the company's compliance with the Consent Order and Safety Act. Failure to resolve any issues discovered in those audits will result in portions of the stipulated civil penalties coming due. The Consent Order also contains performance obligations, including retention of an in-house consultant, actions to remedy past noncompliances with the Safety Act, creation of publicly available best practices for Safety Act compliance, employee training, and industry outreach. The population listed in this closing resume is based on Forest River’s untimely recalls and does not include other issues addressed by the Consent Order, which relates to Forest River’s entire business. Based on the Consent Order, Forest River's a