2016 FALL CONTRACTOR CASHBACK PROMOTION

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1 Contractors Get CashBack September 1, November 30, 2016 for Selling Rheem This fall, reward your contractors for selling Rheem qualifying equipment* by participating in the Contractor CashBack Promotion. Contractors can earn up to $850 cash back on each home installation of Rheem qualifying equipment*. This Fall Promotion features a $150 bonus offer to the Contractor for installing an EcoNet Control Center and WiFi Kit with each system or individual unit installation. Pro Partners will receive an extra month of CashBack beginning August 1st and up to a 10% rebate on all KwikComfort Financing menus. CashBack starts early for Pro Partners giving them an extra month of CashBack for selling and installing Rheem plus they are eligible for up to a 10% discount on all KwikComfort Financing menus! KwikComfort rebate is Pro Partner exclusive Smart Home System for Heating, Cooling and Water Heating *See Matrix for a full list of qualifying equipment. H E A T I N G C O O L I N G + W A T E R H E A T I N G Rheem.com 1

2 It s Now Easier Than Ever For Contractors to Participate in the Fall Promotions Contractors will receive the full rebate amount listed on the qualifying promotion matrix and will have the option to choose whether or not they want to offer the rebate to homeowners.* Contractors will be responsible for filing their rebates online by the required deadline in order to receive payment. *Rheem will not advertise the CashBack promotion to homeowners as in years past; however, if the Contractor chooses to offer the promotions to their customers, they can create their own advertising using graphics we will provide in AdMaker. Promotion Participation & Contractor Enrollment Distributors must enroll Contractors as eligible to participate in the promotion via the new Contractor Serial Tool Dashboard (CST) on MyRheem.com. Here, Distributors will agree to the promotion terms and conditions and select their Contractors to participate. For step-by-step instructions on how to enroll contractors as eligible to participate, see instructions on page 3. Rheem will automatically enroll Pro Partners in the Fall Pro Partner promotion. Once each contractor has been enrolled as eligible to participate, they will receive an with promotion details. Please note, all participating contractors must have user accounts setup on MyRheem.com in order to submit rebate claims. Submissions & Payment Once a Contractor has been enrolled for the promotion they will be able to login to MyRheem.com to submit claims online through the CST, beginning September 1st (August 1st for Pro Partners), and manage their method of payment. Contractors are responsible for submitting their claims online using the Contractor Serial Tool (CST) available on MyRheem.com. Contractors will no longer be required to upload a copy of the homeowner invoice, as serial numbers will be validated through the CST upon claim entry. All rebates should be entered online to qualify for reimbursement and must be submitted no later than December 16, See Contractor Terms and Conditions for further details. The CashBack rebates paid to Contractors will be split 50/50 between Rheem and the Distributor. Rheem will fund the CashBack rebates out to the Contractors via a re-loadable card, or direct deposit, and then Distributors are invoiced for their 50% share of cost. For the KwikComfort Financing rebate included in the Pro Partner promotion, contractors will receive the rebates back to their accounts (setup with Synchrony) at the close * of each month. How it Works CONTRACTOR (OPTIONAL) INSTANT SAVINGS * HOMEOWNER RHEEM Reporting on contractor participation and claim status totals. Distributor will be invoiced for 50% of the rebate total. DISTRIBUTOR Contractor goes online to MyRheem.com to submit claims and check the status of all rebates using the new Contractor Serial Tool. MyRheem.com (CST) Reporting to Rheem Rheem funds Contractor CashBack rebate via re-loadable card or direct deposit within 4 weeks of claim approval. Rheem funds offer Contractors can choose whether or not they want to offer the rebate to their customers. * KwikComfort rebate is funded to the direct deposit account setup with Synchrony within days from close of the month. 2

3 AUGUST 1 ST - NOVEMBER 30 TH Online Enrollment Steps Distributors will be able to enroll contractors beginning July 1, 2016 on MyRheem.com. 1 Log into MyRheem.com and go to the Marketing tab. 2 Select CST Dashboard under the Tools menu. 3 Click on the Enrollment* box and select 2016 Rheem Fall Contractor CashBack. 4 Agree to the Distributor Terms & Conditions for the promotion and the contractors will appear for you to enroll. 5 Select the contractors you want to enroll in the promotion and click the Enroll button. * Please note, if you do not see the Enrollment box under the CST dashboard to enroll your contractors, you will need you contact your main office or your marketing department, as your account permissions may be restricted. Some Distributorships have elected to restrict enrollment permissions to select users. Once enrolled, Contractors will receive an from Rheem with the promotion details and dates. As a reminder, there will be two separate rebate programs - Fall Contractor CashBack, which you will need to enroll your contractors in following the steps above, and the Fall Pro Partner CashBack & KwikComfort, which incorporates both the CashBack rebate as well as the KwikComfort Financing rebate. Rheem will automatically enroll your Pro Partners into the Fall Pro Partner CashBack & KwikComfort promotion. Distributor Reporting Distributors will have visibility of their Contractor s participation in the promotion through the reporting area on the CST Dashboard on MyRheem.com. Reporting will include status of all rebates, amounts and contractor participation. Rheem and the Distributor will split the CashBack rebate to the contractor 50/50. 50% of the rebate reimbursement will be billed to you, the Distributor, starting approximately the 3rd week of the promotion and will include invoice backup reporting. 3

4 SEPTEMBER 1 ST - NOVEMBER 30 TH PRO PARTNERS CAN TAKE ADVANTAGE OF AN EXTRA MONTH OF PROMOTIONAL REBATES STARTING AUGUST 1 ST. (STANDARD CONTRACTOR PROMOTION RUNS FROM SEPTEMBER THROUGH NOVEMBER) $750 $ $550 $ $ RHEEM 2016 FALL CASHBACK MATRIX AIR CONDITIONER SYSTEMS Outdoor Unit Indoor Unit 1 Thermostat 2 / EcoNet Control RA20 RA20 RA17 RA17 RA16 RH2T (EEV-EcoNet), RH2T (EEV-EcoNet), R97V R96V, R802V, RGGE/RGJF Classic Plus Series R95T, R801T RH1V, RH1T EcoNet WiFi Kit $850 $700 $ $ $ RHEEM 2016 FALL CASHBACK MATRIX HEAT PUMP SYSTEMS Outdoor Unit Indoor Unit 1 Thermostat 2 / EcoNet Control RP20 RP20 RP17 RP17 RP15 RH2T (EEV-EcoNet), RH2T (EEV-EcoNet),, RGGE/RGJF Classic Plus Series R95T, R801T RH1V, RH1T EcoNet WiFi Kit 4

5 SEPTEMBER 1 ST - NOVEMBER 30 TH RHEEM 2016 FALL CASHBACK MATRIX RESIDENTIAL PACKAGE MODELS $ $ $ Residential Package Unit Thermostat 2 RQRM, RGEA16 RGEA15, RACA15 RQPW Thermostat Thermostat Thermostat RHEEM 2016 FALL CASHBACK MATRIX INDIVIDUAL UNIT COMPONENTS $ EcoNet Control Center & WiFi Kit Bonus! $ Individual Unit Model Numbers EcoNet Control + WiFi Kit + (Must be installed with one of the following individual units: ) R97V RH2T (TXV) $62.50 RP15, RA16 $50.00 R96V, RGGE/RGJF, R802V, RH1V $37.50 R95T, R801T 1 System must include a Rheem matched coil to be eligible for rebate. 2 Any applicable thermostat can be used to complete a Rheem system rebate, however, it is recommended to use a Rheem thermostat. 5

6 2016 KWIKCOMFORT FINANCING FALL PROMOTION AUGUST 1 ST - NOVEMBER 30 TH EXCLUSIVE OFFER FOR PRO PARTNERS ONLY IN CONJUNCTION WITH THE FALL PRO PARTNER. FOR INSTALLATIONS FUNDED ON ELIGIBLE EQUIPMENT** FROM AUGUST 1 ST - NOVEMBER 30 TH Menu Tran Code Promotional Offer Consumer Monthly Payment Estimated Number of Months to Payoff Promotion Contractor Fee UP TO 10% OFF: Pro Partner Fee During Promotion** % APR 2.000% 79 A % APR 4.000% % No Cost 302 if Paid in Full within 6 Months* 2.500% N/A % APR 1.250% 132 B % APR 5.99% APR 2.000% % % No Cost 605 if Paid in Full within 18 Months* 2.500% N/A % APR 1.250% 115 C % APR Until Paid in Full 2.000% % % No Cost 804 if Paid in Full within 24 Months* 2.500% N/A % APR 1.250% 103 H % APR 1.797% % Only 3.50% 902 Until Paid in Full 2.778% 36 *For new cardholders interest accrues at 26.99%. Existing cardholders should see their credit card agreement for their applicable APR. If the balance is paid in full prior to promotional end date no interest will be charged. **On installation of eligible systems and individual components listed on the Rheem Pro Partner CashBack Promotion matrix. Pro Partners are eligible to receive up to a 10% rebate on all KwikComfort Financing menus for the installation of eligible equipment (one or more of the units listed on the CashBack promotion matrix. These claims must be submitted through the CST in order to qualify for the KwikComfort Financing rebate. The sales slip still must be sent in to Synchrony to be validated. Terms and Conditions Menu Selection: Merchants can select and use only one menu. Use of multiple menus may result in termination of the program. Activation Fee: Customers will be charged a one-time fee of $29 on their initial purchase. This a one time only fee; it does not apply to future purchases. Split tickets: Split tickets between multiple Synchrony Bank credit card programs and/or other lenders are not allowed. In keeping with its policy of continuous progress and improvement, Rheem reserves the right to make changes to this promotion without notice. 6

7 AUGUST 1 ST - NOVEMBER 30 TH Distributor Terms and Conditions The Rheem 2016 Fall Contractor CashBack Promotion will run from September 1, 2016 through November 30, 2016 for contractors and the 2016 Fall Pro Partner CashBack & KwikComfort promotion will run August 1, 2016 through November 30, All participating distributors will run the promotion in their markets for this entire time period. The Distributor is responsible for enrolling the contractor as eligible to participate for the current standard promotion via the CST DashBoard on MyRheem.com. Rheem will enroll Pro Partners automatically into the promotion. IMPORTANT NOTE FOR PRO PARTNER PROMOTION PARTICIPATION: Promotion enrollment and participation is dependent upon the date of Pro Partner Program enrollment completion. Participation in promotional installation eligibility dates will be adjusted to begin based on the month of the Pro Partner Program enrollment completion date. All Pro Partners must complete Pro Partner Program enrollment no later than September 30, 2016 to be eligible to participate in this promotion. Rebate Funding Responsibilities: Equipment will be sold to the Contractor from the Distributor at the present price level. Contractor is responsible for registering and validating their method of payment (direct deposit or pay card) via the CST DashBoard on MyRheem. com and submitting all claims by Friday, December 16, Rheem & the Distributor will split the reimbursement back to the Contractor 50/50 in which Rheem will fund to the Contractor via re-loadable card and then invoice the Distributor for their 50%. To participate in the Rheem 2016 Fall Contractor CashBack Promotion, the Distributor agrees to: Advertise the promotion through some of the following channels: Broadcast Media (Radio, Cable TV, etc.) Print Media (Newspaper, Counter Cards, Flyers) Direct Mail (Aimed at both Contractors and Consumers) Electronic Communication (Web Ads, Direct ) Agree to have featured products in Distributor Inventory throughout the promotion time period Enroll Contractors as eligible to participate in the promotion Ensure all Contractors are enrolled and setup their payment method in the promotion no later than November 30, 2016 and all claims are submitted online at MyRheem.com by December 16, 2016 to be considered eligible for payment. All documentation received after 12/16/2016 will be denied for processing. Furthermore, the Distributor understands that, as related to allowable marketing co-op program expenses: The Distributor portion of the Rebate Promotion is NOT an allowable co-op expense. Rheem Heating & Cooling Division will provide (at no cost to Distributor): Program Administration Program Reporting The promotion is subject to termination at Rheem s discretion. This promotion cannot be combined with any other promotion from Rheem. Promotion only applies to residential applications (including multiple units) on a single-family dwelling. Commercial applications/commercial properties (such as rental properties) do NOT apply. Offer valid to legal residents of the continental United States, Alaska and Hawaii only. The Distributor agrees to these terms and conditions electronically on MyRheem.com and by enrolling their contractorsas eligible to participate which, indicates their intention to participate in the Rheem 2016 Fall Contractor Cashback Promotions. IMPORTANT: 2016 Fall CashBack Promotion Dates Contractor Enrollment Begins Friday, July 1, 2016 Pro Partner Promotion Installation Start Monday, August 1, 2016 Contractor Promotion Installation Start Thursday, September 1, 2016 Promotion Installation End Wednesday, November 30, 2016 Final Day for Contractor Enrollment/Registration Wednesday, November 30, 2016 All Rebate Submissions Due Friday, December 16, /16 Form No. M Rheem Distributor Brochure 7