Menard, Inc. - Page 24

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          the USAC20 and the Championship Auto Racing Team racing divisions           
          and participated in the Indy 500.21  Mr. Menard viewed motor                
          sports as a way to garner publicity for the stores, attract                 
          suppliers’ attention, and distinguish Menards from its                      
          competition.22 On the advice of Menards’s attorney, Webster Hart,           
          over concerns about Menards’s liability in the event of an                  
          injurious racing accident, Mr. Menard formed TMI in order to                
          shield Menards from potential liability.                                    
                    2.  Mr. Menard’s Participation in Motor Sports                    
                         a.  Participation as a Driver                                
               Although Mr. Menard has never personally driven Indy cars,             
          he has participated in motor sports for some time.  In the 1980s,           
          Mr. Menard personally drove cars in the IMSA series and the IS              
          series and also raced gocarts.  Since the formation of TMI in               
          1992, Mr. Menard has personally participated in gocart racing, IS           
          series racing, and, in the early 1990s, sports car racing.                  
                              b.  Indy 500                                            
               When TMI participated in the 1997 and 1998 Indy 500 races,             




               20Menards participated in the United States Auto Club during           
          the following years:  1980-82, 1984, 1986-87, and 1989-92.                  
               21Menards first qualified for the Indy 500 in 1981 and                 
          participated thereafter in 1982, 1984, and 1989-91.                         
               22Eventually, Home Depot and Lowe’s also became involved in            
          motor sports.                                                               




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Last modified: May 25, 2011