GENERAL CO-OP PROGRAM GUIDELINES

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1 GENERAL CO-OP PROGRAM GUIDELINES Program Year The Promotional Fund Program runs from January 1 st thru December 31 st All claims and support documents for the program year must be submitted to NORDYNE no later than December 15th Funds that are not utilized within the program year do not carry over Co-op Reimbursement Rate Reimbursement at 50% when NORDYNE-approved materials are utilized in advertising Creative Resources NORDYNE agencies will be responsible for creative development for all major media types eligible for 50% co-op reimbursement Production expenses for creative developed independent of NORDYNE provided templates will not be eligible for co-op reimbursement Creative Usage Exception Policy While discouraged, on a rare occasion it may be necessary for distributors or contractors to locally develop advertisements or campaigns that may be eligible for reimbursement at the 50% rate. For locally created advertising the following procedures must be followed: A completed prior approval form along with a copy of the advertisement, storyboard or script must be submitted to the Co-op Administrator 15 days prior to production If the advertisement is in color, a full color copy must be provided If approved, NORDYNE will sign the prior approval Form, and return it to the distributor It is the distributors responsibility to submit a copy of the prior approval with the Co-op Claim General Creative Specifications Advertisement must feature Frigidaire products exclusively. No other brands. Frigidaire logo must be printed compliant with the Frigidaire guidelines in the correct proportion and PMS colors License statement must accompany brand logo on all applicable printed media Frigidaire logo must be represented equal in size to the distributor or contractor name Include only images of Frigidaire products using proper artwork (video footage, photographs, or line art) in high resolution Advertisement must meet all standards for responsible advertising. (e.g. no false or misleading offers, offensive materials, etc.) Advertisement that is a detriment to the Frigidaire image, or implies the Frigidaire is distressed, overstocked, or that is otherwise adverse to the reputation of the Frigidaire is not eligible for reimbursement No cartoon or animated images allowed

2 CO-OP PROGRAM ADVERTISING REIMBURSEMENT GUIDELINES BROADCAST (Television, Radio, Cable) Television Advertising Guidelines There are 2 types of TV Commercials 1. Brand Image Driven - brand driven ads are only provided by NORDYNE 2. Contractor Driven developed by anyone outside of NORDYNE Contractors may show Frigidaire being installed in the commercial Commercial cannot exceed more than 10 seconds of Frigidaire images or voice-overs for every 30 second spot Anything over 10 seconds is considered a branded commercial, and the templates must be used Frigidaire logo must follow the standard logo guidelines for color & application Commercials following these guidelines are eligible for co-op reimbursement as follows: Brand Driven: 20/10 commercials provided by NORDYNE are eligible at the standard rate of 50% (Local tags are done by your local station) Contractor Driven: Commercials following the above noted guidelines are eligible for reimbursement at 30%. A copy of the approval, script and notarized invoice must accompany the co-op claim Radio Advertising Guidelines For consistency, NORDYNE-provided radio scripts are highly encouraged, and are the only preapproved commercials eligible for co-op at the standard rate of 50%. Radio commercials produced by an outside source must contain the Frigidaire name a minimum of 3 times for every 30 seconds Commercials produced by an outside source must be submitted to NORDYNE for approval Commercials produced by an outside source and approved by NORDYNE are eligible for co-op reimbursement at a rate of 30% ** Only Frigidaire-provided radio scripts and television commercials are eligible for co-op reimbursement at the full rate of 50% Approval Process for Contractor Driven Commercials Provide materials to the distributor who will go through the proper channels at NORDYNE Rough cuts are approved by NORDYNE through the distributor Copy of the approval should be kept on file with the distributor for claim filing PRINTED MEDIA Brand Driven Print Advertisement (NORDYNE Provided Materials) Print ads utilizing Frigidaire Brand Builder approved templates available through NORDYNE are automatically eligible for co-op at the standard rate of 50% Contractor Driven Print Advertisement (Materials Created by an Outside Source) Advertisements created by an outside creative source, when approved by NORDYNE are eligible for co-op reimbursement at a rate of 25%

3 To be considered for co-op reimbursement contractor Driven ads must follow the guidelines below: Contractor driven ads must follow all Frigidaire compliances and guidelines License statement must be incorporated into the ads as specified in Frigidaire guidelines Frigidaire must be represented equal in size to the company name No competitive logos or images are allowed Ads must be produced from high resolution graphics Color ads must be submitted in full color for final approval Ads must be tasteful, and graphically appealing (Overcrowded, unprofessional ads will not be eligible) Approval for Contractor Driven Print Advertisement The ad being considered should be submitted to NORDYNE through the distributor for approval Ads are approved by NORDYNE through the distributor A copy of the final approval should be kept on file with the distributor for claim filing Claim Filing Process: Request for co-op reimbursement should be filed by the distributor on behalf of the contractor. If Frigidaire provided materials are used prior approval forms are not required, but all other documentation shown below must accompany the co-op claim form. Claim Filing Process for Newspaper & Magazine: Distributor submits a copy of the final approval from NORDYNE, a copy of the prior approval, paid invoice and full size tear sheet showing the publication date and the publishers name with the co-op claim form. Claim Filing Process for Direct Mail: A copy of the prior approval, production invoice, postage statement, invoice from direct mail vendor, and a sample of the actual mail piece need to accompany the co-op claim form. Claim Filing Process for Billboard: A copy of the prior approval, vendor invoice listing dates, and a photo of the original sign once posted will need to accompany the co-op claim form. Qualifying Items Newspaper Industry Magazine Billboard Yellow Page Ads Direct Mail Exclusions School Yearbooks Newspaper School Programs Church Bulletins Theatrical Programs Political or Congratulatory Ads Office Supplies (invoices, letterhead) MERCHANDISING & MARKETING MATERIALS Frigidaire Approved Merchandising Program The NORDYNE Merchandising program contains a variety of pre-approved promotional and marketing materials. The program is an exclusive program available to Frigidaire distributors and contractors. All promotional and merchandising materials provided through the NORDYNE program are pre-approved and eligible for co-op reimbursement.

4 To receive co-op reimbursement the following identity items MUST be ordered through the NORDYNE approved program. Site Signs (Yard Signs) Illuminated Signs Uniforms Vehicle Decals Counter Stools Floor Mats Banners Claim Filing Process: The NORDYNE approved vendor will directly bill for products purchased through the program. Attach a copy of the invoice to your co-op claim form, and submit to NORDYNE. Since all materials are pre-approved no further documentation is required. Frigidaire Merchandising Materials from Outside Sources When using a vendor other that the NORDYNE approved source for merchandising, apparel or promotional products, prior approval is required. A sample of the product showing the brand logo or a vendor proof needs to accompany the prior approval form. Claim Filing Process: To file a claim, a copy of the signed prior approval, invoice and a sample or photo of the product needs to accompany the co-op claim form. Submissions of claims that did not receive prior approval will be rejected. TRADE SHOWS Participation in trade shows requires a prior approval. Prior approval request must include the name of the show, dates and estimated expense. If approved, the following items are eligible for co-op reimbursement. Participation fees Booth space rental Approved Frigidaire signage Ground shipping for product and display material to and from event Drayage charges Claim Filing Process: Photographs of booth displaying Frigidaire equipment and signage, along with copies of all invoices must be submitted with co-op claim form. BOOTH RENTAL AND PURCHASE PROGRAM The Frigidaire booth rental program is administered by VisionStream The program includes rental of a 10 x 10 portable booth with Frigidaire graphics or graphics only. 10 x 10 booths and Frigidaire graphics are also available for purchase. Claim Filing Process: VisionStream will bill NORDYNE for the booth rental charges and all applicable freight, and NORDYNE will invoice the distributor. Since VisionStream is an approved vendor only a copy of the NORDYNE invoice needs to accompany the co-op claim form.

5 DISTRIBUTOR LOCAL MARKETING PROGRAM NORDYNE has entered into an agreement with Feature Group USA to provide our distributors with professional ad agency services in your local market. As part of the full scope of services offered by NORDYNE and Feature Group USA, it is now possible to add the power of media analysis and market advertising strategies to your business. Everything from electronic media, newspapers, videos, television, radio, direct mail and more will be taken into account to deliver programs that let the power of the Frigidaire brand generate profits for you. How to Get Started The first step to implementing this program is the Situation and Market Analysis. This analysis will include a full market analysis, market mapping, evaluation of sales force abilities, competitive environment analysis, and market potential. Based on the results of the analysis Feature Group will create and assist in implementing a custom marketing program designed to generate new sales and profit. Having a professional marketing team with over 20 years of experience in the HVAC industry providing an objective evaluation of your market situation is an investment that will pay off for years to come. For Information or to Schedule a Consultation Contact: Feature Group USA 1415 Elbridge Payne Suite 170 Chesterfield, MO Phone: Fax: Co-op Reimbursement and Claim Filing Process: Feature Group USA is the ONLY agency whose services qualify for co-op reimbursement. To file a claim, attach a copy of the Feature Group invoice to the co-op claim form. Since Feature Group is an approved vendor no further documentation is necessary. SPONSORSHIP Sponsorships of any kind, requires prior approval. Prior approval needs to be completed with the following information. Name of the event Date of the event Estimated cost Details on how the brand will be represented or promoted Sponsorship Exclusions Local sports team such as little league or high school teams Unless an actual approved ad is published, church bulletins, school year books, theatrical programs political or congratulatory ads are not eligible.

6 Claim Filing Processing: Photography of event or exhibit showing the brand representation, list of participants (when applicable), detailed vendor invoice for services or goods, and a copy of the prior approval need to accompany your co-op claim form. CONTRACTOR INCENTIVE PROGRAMS Contractor or Customer Incentive Programs, which includes trips, rebates, golf, fishing and other related incentive programs require prior approval. A prior approval form needs to be completed with the following information. Details of the program How the Frigidaire is being represented or promoted Details on how the contractor or contractor is awarded the incentive Date of when the program will begin and end Estimated cost Claim Filing Process: Because various programs require different documentation NORDYNE will specify on the prior approval form the type of documentation required for the requested event. A copy of the prior approval, the documentation listed on the prior approval, all related vendor invoices, and a signed copy of the prior approval will need to accompany the co-op claim form. NOTE: If the Incentive program requires a deposit NORDYNE will allow the deposit to be submitted for co-op reimbursement, but all other expenses are to be filed after the event has taken place. CUSTOMER VISIT / CONTRACTOR TOURS NORDYNE offers factory visits for you to bring your qualified contractors and customers to visit our facilities. After the tours have been completed, the following expenses are eligible for co-op reimbursement. Eligible Expenses: Expense for hotel room while in St Louis Expenses for airfare Expense for local transportation when in St. Louis Expense for meals Expense for some entertainment Program Exclusions: Souvenirs Transportation to and from departing airport Parking expenses from departing airport Food or beverages at airport or in route Contact your Regional Sales Manager for more information.

7 NOTE: NORDYNE will bill the distributor for rooms, local transportation and entertainment while in St. Louis Customer visits are filed under the Promotional Fund Account. Elite Training funds cannot be used for customer visits Claim Filing Process: Attach a copy of the NORDYNE invoice along with all other applicable expenses with co-op claim form, and submit to NORDYNE for processing. DISTRIBUTOR CONTRACTOR MEETINGS Contractor Meetings and/or Open Houses require a prior approval from NORDYNE. The following items must be noted on the prior approval form and submitted to NORDYNE: Documentation showing how the Frigidaire will be represented or promoted Dates of the event Location of the event Estimated expenses Meeting Items Eligible for Co-op Reimbursement: Printing cost for invitation or agenda that contains the Frigidaire logo Cost of the meeting room Rental fee for AV equipment Cost to ship our product to the meeting Graphics or promotional items showing or displaying the Frigidaire logo Cost of breakfast, lunch or dinner that is a part of the meeting Exclusions: Transportation and lodging expenses for approved sales meeting held by the distributor are not covered Refreshment for distributor s internal meetings with employees Unless special approval is obtained, dinners and activities associated with the meeting, but not part of the actual meeting are not covered Qualifying Requirements to Receive Full 50% Reimbursement The meeting must not contain information pertaining to any competitive brands Regional Sales Manager or a NORDYNE representative must be present Prior approval form must be completed and signed by NORDYNE Claim Filing Process: Attach a copy of the prior approval, agenda, list of attendees, photos of the event, promotional materials, and all related invoices to the co-op claim form and submit to NORDYNE for processing. WEBSITE GUIDELINES Co-op dollars can be used to cover the cost of websites only if the following apply: If a NORDYNE distributor or contractor has our brand logo on their website and have a link from that site to our consumer brand site. The programming cost to add the brand logo with link to the site is co-opable only.

8 If a NORDYNE distributor or contractor advertises our brand at another site (clearly an exclusive advertisement for Frigidaire and not just a link) then the cost for the ad is co-opable. The ad cannot be on the contractor or distributor s site. NOT ACCEPTABLE: Fees associated with website hosting, development and programming, site renewal, etc. LEAD GENERATION PROGRAM Homeowners are utilizing the web for searching and referrals. The Lead Generation program helps your contractors be where the homeowners are searching. The program offers: Professional 24/7 customer service on your behalf Exclusive, prequalified leads National online advertising targeting primed buyers Online dashboard to manage leads and track performance The contractor can be signed up for participation in the Lead Generation program at Tier I: Basic or Tier II Competitive. Visit enora for more information regarding the Lead Generation program. TRAINING Technical NORDYNE believes that the success of any company is measured by the ability of the personnel that are part of that company. The training of these people in product application, installation and service is paramount to maintaining a competitive edge and keeping operating cost under control. NORDYNE has a technical training staff that teaches on-site for distributors as well as a complete training facility at NORDYNE corporate office. Business and Sales Training NORDYNE has teamed up HVAC professionals to develop training programs specific for NORDYNE which provide the student the training and tools necessary to develop a plan for long term success. Sales training includes courses for distributor sales force, contractors, inside counter sales, technicians, as well as a course on selling and marketing commercial products. To find out more about business and sales training for distributors contact your Regional Sales Manager. Brand Training NORDYNE s Brand Training is designed to maximize the power of our brands. This full day seminar has a number of objectives designed to maximize NORDYNE s investment in the brand names. To find out more about brand training contact your Regional Sales Manager. Load Calculation, Economic Analysis, and Equipment Selection Training NORDYNE has partnered with Wrightsoft for branded Manual J load calculation and presentation software. You can see the full suite of products at

9 Eligible Co-op Expenses When training is completed at the NORDYNE Corporate Facility, the cost of the seminar is eligible for co-op reimbursement. When purchased through Energy Design Systems, load calculation software is eligible for co-op reimbursement. When requested by the distributor and training is provided by NORDYNE off site, the following expenses are eligible for co-op reimbursement. Standard charge paid to NORDYNE to conduct training Meals if furnished during the school Rental of any meeting rooms used Audio Visual equipment rental (if required) NOTE: Unless pre-approved, additional expenses such as airfare, ground transportation, and hotel accommodations are not eligible for co-op. Claim Filing Process: Once the training is completed, NORDYNE will bill the distributor for the seminar. To file a claim attached a copy of the NORDYNE invoice to your co-op claim form and submit to NORDYNE for processing. If training was done off site, invoices for all related expenses along with the NORDYNE invoice will need to accompany your co-op claim form. PROGRAM EXCLUSIONS The NORDYNE Promotional Fund Program does not cover any portion of: Political or congratulatory ads such as those in: o School programs o School yearbooks o Theatrical programs o Church bulletins Sponsorship of ball teams or little league New software Installation and maintenance of software programs Monthly fee for accessing internet Donations to sports programs Refreshments for distributor internal meetings with employees Clothing without brand logo on it Office supplies such as memo forms, invoices, service order forms, letterhead, and stationery Tools purchased for use by employees Education or Training not provided by NORDYNE or an approved NORDYNE trainer Transportation and lodging expenses for approved sales meeting held by distributor are not covered Business equipment (i.e.: calculators, computers, FAX machines, etc.) Materials requiring prior approval when such approval has not been secured on the correct form before the advertising is run Advertisement of any type that displays a competitor s brand Since NORDYNE is not considered a brand, any ads or promotional materials that display the NORDYNE logo will not be eligible for co-op reimbursement

10 Unless pre-approved, equipment for showrooms, promotions or incentives are not eligible for co-op reimbursement Season Tickets for Sports Event (Professional or Amateur)

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