Distributor Co-Op Funds 2018 Presented by Claudia Sears February 21, 2018

Distributor Co-Op Funds Program What is the Co-Op Funds Program? How Much Co-Op Is Available? What Can Co-Op Funds Be Used For? How Do I Request My Funds? How Are Funds Reimbursed? Examples

What is the Co-Op Funds Program? Marketing money to help distributors promote and grow their Sprecher + Schuh product sales Designed to assist distributor marketing in partnership with Sprecher + Schuh Is like an allowance for each distributor Any authorized Sprecher + Schuh Distributor can qualify (must meet minimum sales) No registration is required

How Much Co-Op is Available? Co-Op means half, or 50/50. Sprecher + Schuh will pay for half of approved cross-promotional events, merchandise, training, and other qualifying purchases (up to the allotted co-op allowance) The fund is equal to 1% of qualifying distributor sales during the previous Sprecher + Schuh Fiscal Year 2017 (Oct 2016 – Sept 2017). Each distributor has a potential fund of 1% of their FY17 sales, up to a maximum of $2000. A minimum sales of $50,000 in FY17 to qualify New distributors may qualify for $500 minimum (with Regional Manager approval)

How Much Co-Op is Available? Distributor A had $65,350 in sales in FY 2017. Co-Op Fund = $654 Distributor B had $475,000 in sales in FY 2017. Co-Op Fund = $2000 (the max. allowed). Distributor C was a new distributor signed towards the end of the previous year. They purchased an initial stock order, but did not have very much in sales. Co-Op Fund = $500 (* With Regional Manager approval)

What Can Co-Op Funds be Used For? Customer lunch & learn or training seminar. Co-op funds can pay for a portion of the food, meeting room or other materials Organize a direct mail, banner ad, Google Ad Words or email campaign. Use funds to pay for 50% of the printing, list rental or advertising fees. Participate in a regional trade show. Co-op funds can help pay for a portion of the booth fee Co-brand promotional cups, shirts or other give-a-ways for a customer appreciation event or tradeshow. Use your own vendor or one of ours. We will pay 50% of the invoice Advertise in an industrial magazine or trade publication Hold Sales promotions featuring Sprecher + Schuh products There are tons of possibilities!

How Do I Request Co-Op Funds? Include the Co-Op fund as part of your marketing plan for the year Fill out and submit a Co-Op Funds Order Form before any purchases are made. Orders must be submitted before Oct. 1, 2018 (http://summit.sprecherschuh.com/co-op/) WAIT!! Your request will be addressed within 48 hours If approved, proceed with your co-branding event or make your purchases Submit a copy of invoices for your promotion BEFORE December 1st, 2018 (include proof of purchase) Don’t wait til then! That’s too late to be effective! Approved

How Are Co-Op Funds Reimbursed? Funds are reimbursed for the qualifying amount or the total amount of the available funds, which ever is less A Credit will be issued to the Distributor billing account Account must be in good standing and be current Co-Op Funds CANNOT be used to pay past due invoices

Examples

Co-Branded Polo Shirts Distributor A FY2017 Sales $0, They are a new distributor Co-Op Funds (New Distributor) $500* Total Merchandise Invoice $956 x 50% = $478 Co-Op Funds Disbursement (Credit) $478 Co-Op Funds remaining $22 * With Regional Manager approval

Trade Magazine Banner Ads Distributor B FY2017 Sales $176,890 Co-Op Funds = FY17 Sales x 1% $1,769 Design Today Invoice $3000.00 x 50% = $1500.00 Co-Op Funds Disbursement (Credit) $1,500 Co-Op Funds remaining $269

Lunch-N-Learn Customer Seminar Distributor C FY2017 Sales $150,000 Co-Op Funds = FY17 Sales x 1% $1500 Hotel Meeting Invoice $3956 x 50% = $1978 Co-Op Funds Disbursement (Credit) Co-Op Funds remaining $0

Lunch-N-Learn and Customer Seminar Tools Helpful page on Distributor Extranet (through B2B) Quick Tips Guide Co-Host Request Form 10 Week Countdown Seminar Checklist Sample Invitation Sample Agenda Welcome Banner We are here to help!

Regional Tradeshow Distributor D FY2017 Sales $360,352 Co-Op Funds = FY17 Sales x 1% $2000 (maximum allowed) Tradeshow Space Invoice Received $4000 / 4 = $1000 Co-Op Funds Disbursement (Credit) $1000 Co-Op Funds remaining

Guardian Industrial Customer Appreciation Day

3-Phase Power Systems Polo Shirts

Gray Electrique Playing Cards

Advanced Technical Sales Polo Shirts

Hermitage Automation Yearly Calendars

Motors & Controls Work Shirts

Connectric Systems Website enhancements and Search Engine Optimization

Plan To Succeed! Sprecher + Schuh wants its distributors to succeed and grow their business. The Co-Op fund is like free money, designed to supplement a marketing or promotional campaign. Don’t have a marketing department or design firm to help you out? Sprecher + Schuh and our Manufacturing Representatives can help you plan and execute cross-promotional marketing. Get your Co-Op Fund Order Form at summit.sprecherschuh.com/co-op and start planning for a successful year!

Questions? Claudia Sears, Marketing Communications Tel: 281.227.4235 Email: marketing@sprecherschuh.com summit.sprecherschuh.com/co-op