2021 Program Overview

TABL E OF CONT ENTS

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MEMBERSHIP REQUIREMENTS . ................... SECTION 1.0 Capital Stock Requirement. ................................................................ Page 6 Total Stock Requirement..................................................................... Page 6 Patronage Dividend Disbursement..................................................... Page 6 Dual Affiliation . .................................................................................... Page 6 General Member Standards................................................................ Page 6 Ace Brand Standards........................................................................... Page 7 Higher Ground...................................................................................... Page 7 WAREHOUSE PROGRAM .................................. SECTION 2.0 Broken Carton Charges....................................................................... Page 8 Freight Charges. .................................................................................. Page 8 Warehouse Purchase Payment Terms............................................... Page 8 Warehouse Deliveries.......................................................................... Page 8 Fill Rates............................................................................................... Page 8 Handled Patronage Rebate History.................................................... Page 8 Drop Ship Program.............................................................................. Page 9 PAINT PROGRAM . .............................................. SECTION 3.0 Paint . ................................................................................................. Page 10 Benjamin Moore ® ............................................................................... Page 10 Volume Discount. .............................................................................. Page 10 Magnolia Home by Joanna Gaines Paint......................................... Page 10 Paint Discovery Orders...................................................................... Page 11 Paint Patronage Rebate History. ...................................................... Page 11 MERCHANDISE CLAIMS ................................... SECTION 4.0 Policy A. ............................................................................................. Page 12 Policy B............................................................................................... Page 12 Policy C. ............................................................................................. Page 12 Low-Volume Service Charge............................................................. Page 12 Current-Year Assessment Listing..................................................... Page 12 Brand Assessment............................................................................ Page 13 DROP SHIP BUILDING MATERIALS (DBM) ... SECTION 5.0 Mission Statement . .......................................................................... Page 14 Value Proposition . ............................................................................ Page 14 CONSUMER MARKETING . ............................... SECTION 6.0 National.............................................................................................. Page 16 Acehardware.com...................................................................... Page 16 Online Marketing........................................................................ Page 16 National Events and Promotions.............................................. Page 17 Mobile App. ................................................................................ Page 18

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