2016 Distributor Co-Op Funds Claudia Sears, Marketing Communications Tel: summit.sprecherschuh.com/co-op

2016 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 Use My Funds? How Are Funds Disbursed? Examples

A benefit any Authorized Sprecher + Schuh Distributors can qualify for Marketing money to help distributors promote and grow their Sprecher + Schuh product sales Designed to assist marketing in partnership with Sprecher + Schuh. Is like an allowance for each distributor No registration is required What is the Co-Op Funds Program?

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) T he fund is equal to 1% of qualifying distributor sales during the previous Sprecher + Schuh Fiscal Year 2015 (Oct 2014 – Sept 2015). Each distributor has a potential fund of 1% of their FY15 sales, up to a maximum of $2000. A minimum sales of $50,000 in FY15 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 Co-Op Fund = $654 Distributor B had $475,000 in sales in FY 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) How Much Co-Op is Available?

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, internet ad or campaign. Use funds to pay for 50% of the printing 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! What Can Co-Op Funds be Used For?

Include the Co-Op fund as part of your marketing plan for the year Fill out and submit a Co-Op Funds Request/Pre-Approval Form before any purchases are made WAIT!! Your request will be returned within 48 hours If approved, proceed with your co-branding event or make your purchases Submit your invoice along with the pre-approval form BEFORE December 31 st, 2016 Co-Op funds will NOT be disbursed without pre-approval and signed off on by the Sprecher + Schuh Marketing Department. No Exceptions! How Do I Request Co-Op Funds?

Funds must be requested for disbursement by December 31, 2016 The Pre-Approval form signed by Sprecher + Schuh must be on file A copy of an invoice must accompany any disbursement requests Pictures of merchandise or events are requested but not required Funds are reimbursed for the qualifying amount or the total amount of the available funds, which ever is less The Credit will be issued to the Distributor billing account number Distributor accounts must be in good standing and be current Co-Op Funds CANNOT be used to pay past due invoices How Are Co-Op Funds Reimbursed?

1.ABC Distribution fills out the Pre-Approval Form and submits it to Sprecher + Schuh Marketing for some shirts with both the ABC and Sprecher + Schuh logos. 2.The request is pre-approved and the distributor orders the shirts. 3.Once the shirts arrive, ABC Distribution sends a photo of the new shirts and a copy of the original invoice to the Marketing department for fund disbursement. 4.A credit is issued to ABC Distribution for 50% of the invoice or the total amount of their funds available, whichever amount is less. Co-Branded Polo Shirts

ABC Distribution FY2015 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 until 12/31/2016 $22 Co-Branded Polo Shirts * With Regional Manager approval

1.CSA Electric & Sales will be featuring Sprecher + Schuh in a ¼ page advertisement in the October issue of Design Today magazine, as well as three banner ads on the website throughout the year. 2.They submit the Pre-Approval Form to Sprecher + Schuh Marketing for the advertising space and banner ad fees. 3.Sprecher + Schuh pre-approves the advertising and helps them design the ads. 4.CSA Electrical & Sales sends the Pre-Approval form, a copy of the magazine ad, and a copy of the magazine invoice to the Marketing department for fund disbursement. 5.A credit is issued to CSA Electric & Sales for 50% of the invoice or the total amount of their funds available, whichever amount is less. Electrical Trade Magazine Advertising

CSA Electric & Sales FY2015 Sales$76,890 Co-Op Funds = FY15 Sales x 1%$769 Design Today Invoice$ x 50% = $ Co-Op Funds Disbursement (Credit)$ Co-Op Funds remaining until 12/31/2016 $0 Electrical Trade Magazine Advertising

1.Westfield Supply wants to feature a Sprecher + Schuh product line at a customer seminar. 2.They submit the Pre-Approval Form to Sprecher + Schuh Marketing for a Lunch-N-Learn meeting at a local hotel. 3.Sprecher + Schuh pre-approves the request and assists by providing materials and a trainer for the meeting. 4.After the seminar, Westfield Supply sends a list of attendees, pictures of the event, and a copy of the hotel invoice for the meeting room and catering to the Marketing department for fund disbursement. 5.A credit is issued to Westfield Supply for 50% of the invoice or the total amount of their funds available, whichever amount is less. Lunch-N-Learn Customer Seminar

Westfield Supply FY2015 Sales$150,000 Co-Op Funds = FY15 Sales x 1%$1500 Hotel Meeting Invoice$3956 x 50% = $1978 Co-Op Funds Disbursement (Credit)$1500 Co-Op Funds remaining until 12/31/2016 $0 Lunch-N-Learn Customer Seminar

1.Gulf Coast Electrical will be featuring Sprecher + Schuh, along with three other principals, at a regional trade fair. 2.They submit a Pre-Approval form. Because four principals will be promoted at the show, Sprecher + Schuh agrees to pay for 25% of the booth space. 3.After the show, Gulf Coast Electrical sends a photo of the booth during the show, and a copy of the booth space invoice to the Marketing department for fund disbursement. 4.A credit is issued to Gulf Coast Electrical for 25% of the invoice or the total amount of their funds available, whichever amount is less. Regional Tradeshow

Gulf Coast Electrical FY2015 Sales$60,352 Co-Op Funds = FY15 Sales x 1%$604 Tradeshow Space Invoice Received$2000 / 4 = $500 Co-Op Funds Disbursement (Credit)$500 Co-Op Funds remaining until 12/31/2016 $104 Regional Tradeshow

1.Gulf Coast Electrical wants to use the remainder of their co-op funds ($104) to purchase a D7 Pilot Devices demo panel. 2.The Distributor price for the panel is $200 3.Gulf Coast submits a pre-approval form 4.Sprecher + Schuh approves the form for 50% of the panel and issues them an NPA number for the cost of the panel ($100) 5.Gulf Coast Electrical orders the panel from customer service at a net cost of $100 6.Sprecher + Schuh builds and ships the panel to Gulf Coast Electrical 7.In this case no credit to the account applies Sprecher + Schuh Product Sample

Gulf Coast Electrical FY2015 Sales$60,352 Co-Op Funds = FY15 Sales x 1%$604 – previous use of $500 = $104 Large D7 Pilot Devices Demo Panel$200 x 50% = $100 Co-Op Funds NPA #90000 Issued$100 Co-Op Funds remaining until 12/31/2016 $4.00 Sprecher + Schuh Product Sample

Plan To Succeed! Sprecher + Schuh wants its distributors to succeed and grow their business. The Co-Op fund is like free money, designed to augment a marketing or promotion 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 Pre-Approval Form at summit.sprecherschuh.com/co-op and start planning for a successful year!

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