The Abbey Story. Who We Are. What Makes Us Better.

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1 The Abbey Story In 1958, Abbey Carpet & Floor started as a single floor covering store in Sacramento, California. The concept of franchising originated in the early 1960's, and Abbey became the first Franchisor in the state of California. We now have over 800 stores nationwide and can boast of being America's oldest and most respected floor covering franchise. Who We Are. What Makes Us Better. We've grown over the last 49 years because we are a progressive organization, able to quickly adapt to our everchanging industry, and in particular, the needs of our Members. Our Members remain independent and enjoy greater flexibility and choice in the way they do business. Our programs are easily customized to fit even the most unique requirements. Perhaps most important, our proprietary "private branded" programs allow our Members to differentiate their businesses from competition, thereby helping to increase profitability. Our 800 store National Buying Power enables you to buy better. We offer the widest selection of products at the most competitive prices. We provide the tools to advertise and market a wide variety of flooring and other home fashion products, not just carpet. We also set ourselves apart by offering a variety of business services for our Members to help lower operating costs. The savings and increased profitability these bring to the independent retailer are substantial. Our Members, too, enjoy the confidence of having an exclusive operating territory. In essence, the Abbey program has proven that it helps Members increase sales, lower operating costs and improve profitability. Give us the opportunity to show you how we can help your business.

2 ABBEY EXCLUSIVE BRANDS American Showcase Exclusively at Abbey Carpet & Floor Extended Masterlife Warranties The Premier Stainmaster Carpet Collection by Abbey Carpet & Floor Alexander Smith Exclusively at Abbey Carpet & Floor Abbey Builder Alliance Exclusively at Abbey Carpet & Floor

3 ABBEY FLOORS AT HOME Story of Abbey Floors at Home Abbey Carpet & Floor is proud to introduce the Abbey Floors At Home, Home Shopping Service. This turnkey program gives you the tools necessary to capture your share of over $1 billion dollars in floor covering purchases currently being closed in the consumer s home. Abbey Floors At Home offers you another way to diversify your business. We ve developed a program to cater to those customers who don t have the time to shop for floor covering and for those consumers wanting personalized in-home service. Abbey Floors at Home brings the showroom to them. The internet has paved the way for shopping convenience. Consumers like the idea of shopping for floor covering when it s convenient, in their own home, with their own lighting and décor. Our comprehensive program enables you to hit the ground running and enhance the portfolio of services you offer your customers. The Abbey Floors at Home program offers a menu of the following: Basic Program Package: Vehicle graphics Comprehensive advertising package including direct mail, newspaper, television, radio and billboard Product assortment complete product offering of carpet, laminate, hardwood, vinyl, and tile. Floors at Home H o m e S h o p p i n g S e r v i c e Optional: Hardware & software program for in home measurement and quotes. Vehicle lease program through a National Leasing Company. Merchandising vehicle racking system to secure samples in an orderly and safe fashion. Merchandising The Abbey Floors At Home program offers special pricing on both soft surface and hard surface products. Carpet is merchandised in our proprietary Abbey Carpet & Floor deck boards. Laminate and hardwood are merchandised in our private labeled shop at home portfolios, as well as handboards from our many manufacture partners. These products were handpicked by our merchandising team to bring your customers the best value and selection, with easy trade ups. Textures, saxonies, friezes, berbers and patterns are all represented in this special collection to provide the perfect product for any room at any budget. Van Lease Vehicle Acquisition, Financing, & Disposal Registrations ($100 Annually) Scheduled Preventive Maintenance Services Original Equipment Replacement Parts Factory Trained Labor Lubricants & Top Off Fluids Tires & Tire Service Measure & Quote System Abbey Floors at Home participating dealers have a special software package available to enhance their in home shopping program. This package includes the computer hardware and software to enable you to instantly start assisting your customers in their homes. You can quickly measure and produce a detailed estimate for your customers in their home. Marketing As part of your Customized Marketing Package you will receive an Abbey Floors at Home Promotional Kit which contains essential items that will assist your sales person accommodate those consumers wanting personalized in-home service. This Abbey Floors at Home Promotional Kit makes it convenient to bring the showroom to them. 1 Abbey Floors at Home sample bag 1 30 Abbey Floors at Home tape measure 24/7 Emergency Road Service & Towing Substitute Vehicles for Maintenance Downtime Washing (26 Annually) Full-Service Fuel Program ($.05 Typical Savings) 1 Abbey Floors at Home clipboard with calculator 1 Abbey Floors at Home utility knife Advertising We ve got everything you ll need to let consumers know about your Home Shopping Service. Advertising campaigns have been created to support the Abbey Floors at Home Program. We Bring the Showroom to You focuses on the ease and convenience of the Home Shopping Service. Your Time is Precious addresses one of the real benefits of Home Shopping Service which is saving time. Rental Discounts (15%) Partners in Safety Program Decaling, Samples, & Racking (See Table) Locally Assigned Account Manager 1 Abbey Floors at Home key chain 10 Abbey Floors at Home pens We will provide you: with two 30-second spots. They are both structured as a :15/:15. The first 15-seconds is recorded with the campaign message. The last 15-seconds can be customized to your specific offer and call to action. Website Adding to the full featured AbbeyCarpetAndFloor.com website, your store will be noted as an Abbey Floors at Home participating dealer on the store locator page. Your AbbeyCarpetAndFloor.com store site will also indicate that you have shop at home service and provide a lead-generating request page for shop at home customers.

4 ABBEY MEMBER PROGRAM Abbey Showroom Design The Abbey Showroom Design is a fundamental concept. The system is designed to provide buying destinations that: A.) Guide consumers to a simple, confident buying decision. B.) Step them up in product categories. C.) Demonstrate to the consumer that Abbey Members are experts at what they do - - from product recommendation all the way through installation. The unique flowing designs of a custom showroom floor make a bold, attractive fashion statement that shows the consumer you know your business. In addition, this intricate detail demonstrates that Abbey installers are experts at their craft. Again, it is the uniform, integrated presentation of the Abbey Showroom Design that comfortably captures the attention of consumers in your store, leading them to buy carpet and other flooring products not just shop for them. The Abbey Showroom Design is not just about racks, it's about how these items are integrated together to effectively guide the consumer to a confident buying decision. Statistically, we know that the Abbey Showroom Design helps to increase the average retail ticket, increase close rates and improve gross margins per sale. Therefore, the bottom line of the Abbey Showroom Design is the ultimate bottom line... increased profitability!

5 Information Technology Abbey Member Information Network The Internet has proven to be an invaluable tool for the successful business. Abbey Members can take advantage of this dynamic medium by accessing the Abbey Member Information Network (AMINet). AMINet is a secured and private website exclusively designed for Abbey Members. Media News The primary means of relaying information to our Abbey Members is through Media News. Information related to pricing, product and program updates are available on AMINet and can be viewed or printed on request. An on-going history of Media News is available as well on the "News Archives" page. Catalog /Pricing With prices changing throughout the year, it becomes difficult to maintain an up-to-date hard copy. AMINet provides an effective solution. You can search the carpet catalog on-line, view cost, add markup and print price tags. You are provided with current pricing information as well as product specifications. For those who prefer to view and search pricing on a Microsoft EXCEL spreadsheet, you can request an delivery of the pricing at any time. Hard surface pricing is also available on-line displaying pricing in a format similar to the traditional price book. CashBack AMINet provides details on the Abbey CashBack programs, allowing you to properly manage your purchases to insure you achieve maximum CashBack earnings. In addition, purchases reported by the, manufacturers are made available on AMINet. Here you can check your purchases against the manufacturer's reports. This procedure insures a timely and accurate valuation of CashBack earnings. Member Advertising Services As a Abbey Member, you have on-line access to the Member Advertising Agency through AMINet. These services and elements will help you grow your business by increasing brand awareness and store traffic. Member Forum In an effort to provide an interactive forum for our Members to communicate between each other, a "bulletin board" concept is available on AMINet. This allows Members to post information, questions, "for sale" or "wanted" type items for fellow Abbey Members to review and respond to. These and other features including supplier contact information, finance programs, and more, are just a "click" away. This website is the sure way to keep you informed about Abbey Carpet and Floor and its benefits! AbbeyCarpetAndFloor.com - Consumer Website The AbbeyCarpetAndFloor.com website is a full-featured site designed to gain the attention of online customers. Utilizing the latest in technology, the site is full of extensive content aimed at customer's frequent inquires. Some of the featured pages include: Why choose Abbey How to Select Flooring Brands Warranty Financing Flooring Care Preparing Your Home Glossary Location Map Contact Us Abbey Floors at Home Abbey Decorator The store locator pages give your customers access to your address, phone number, map to your store and a link to your abbey web site. All Abbey stores have the opportunity for a unique store website on AbbeyCarpetAndFloor.com. This website contains all the extensive content of the main abbeycarpetandfloor.com site as well as 5 custom pages which you help design.

6 ABBEY BUSINESS SERVICES Credit Card Processing Store Software Systems Our national credit card processing Our approved software providers offer Abbey Credit Card The Abbey Credit Card program is our proprietary private label consumer financing plan that can only be used at Abbey stores. It provides the opportunity to offer extended flexible programs in support of your advertising campaigns. We offer competitive discount rates along with aggressive approval and high credit lines. AbbeyCredit CARD HOLDER NAME ABBEY CARPET provides a competitive rate structure for Visa/Mastercard processing along with the ability to clear American Express, Discover and Abbey Credit Cards. Employee Benefits Members have the ability to set up a comprehensive employee benefits program including medical, dental, disability, life and vision insurance as well as 401k and other retirement programs with the flexibility to meet your needs at a cost effective price. Employee Leasing By working with a nationally recognized employee leasing group, you will be able to structure a payroll and benefits program that includes payroll management, medical and dental insurance, 401k plans, and worker's compensation insurance. a fully integrated store system package designed to improve the operational efficiency of the floor covering retailer. The programs and training are made available at a nationally negotiated rate structure for Abbey Members. Business Insurance Comprehensive insurance coverage is made available for your independent business customized to meet your specific needs and requirements. CashBack Abbey Members earn CASH (not money to be matched, not a load, and not coop), based on every qualified purchase from Abbey approved suppliers, including Branded Fiber.

7 Marketing Services Advertising & Marketing Our staff of marketing and advertising professionals strive to create comprehensive strategies and campaigns designed to clearly convey our Members messages: driving more consumer traffic through their doors, directing the consumer to their desired product area and helping the sales person guide the customer through the selection process. We function as a full service, inhouse, advertising agency by working exclusively for our Members with one goal in mind to help you improve your bottom line! Our services are not a one-size-fits-all approach to advertising. We can customize our creative to fit each Member s unique trading area and help them target their appropriate consumer. Marketing Services is ready to help. Whether you need assistance developing an ad or you need an entire advertising campaign, we re just a phone call away. The Marketing Services Program is a comprehensive advertising and marketing program designed to be customized to every Abbey Carpet & Floor Member's store. Within this program, you receive the following effective and thorough advertising and marketing programs, services and elements that will help you grow your business by increasing brand awareness and store traffic. Full Service Advertising Agency One-On-One Marketing Consultation Branding Services Member Printing Services: Stationery, Business cards, Thank You cards, Envelopes, Pocket Folders and Custom print services On-Hold Advertising Services: Music/Advertising Messages Exterior Signage Vehicle Signage Promotional Specialty Items Web Site Consumer Web Site ( Website Store Locator Customized Store Webpages Incentive Program Quarterly Promotions Promotional Pricing & Financing In-Store P.O.P. Advertising & Direct Marketing Creative Direct Marketing Customer List Management and Hygiene List Brokerage and Custom Database Targeting Direct Mail: Postcards, Letters, Private Sale Program and more - all completely turnkey Circulars (Direct Mail or Newspaper Insertion) Referral Program - WOMAN (Word Of Mouth Advertising Network) New Homeowner Targeting Broadcast Television and Radio Commercials Image & Promotional Customized script writing and production Print Newspaper & Magazine Ad Formats Yellow Pages Ads Billboards Air Miles Consumer Sales Program In Store P.O.P (Point of Purchase) Materials Quarterly Promotion P.O.P Posters, Counter Cards, Flip Card Tags, Sale Tags Departmental Signage Credit Signage (Window Static, Counter Cards, Sale Tags) Informational Brochures Alexander Smith American Showcase Warranty Guide Premier Stainmaster Preparing Your Home Abbey Hardwood Choosing the Right Flooring

8 ABBEY EXCLUSIVE BRANDS American Showcase Exclusively at Abbey Carpet & Floor For more than a decade, American Showcase has symbolized elegance and quality, a promise of long-term enjoyment and satisfaction. As the sole owner of the American Showcase brand, Abbey Members can t be shopped. The broad selection of American Showcase styles and colors offer consumers an exciting range of decorating options. Products featured in the American Showcase brand offer exceptional value representing a wise investment. When customers demand the best and most beautiful in flooring, Alexander Smith and American Showcase offer impeccable quality, innovative styling. Available exclusively through Abbey Carpet & Floor stores. The highly respected Alexander Smith name is the oldest brand in the industry. Its unsurpassed quality and remarkable beauty is a hallmark of its long respected heritage dating back to Alexander Smith Exclusively at Abbey Carpet & Floor Abbey Carpet & Floor is the sole owner of the name Alexander Smith giving our members the exclusive right to market products under the Alexander Smith brand with no competition. Exotic Bamboo Bamboo has become a sweeping trend in upscale, hard surface flooring. Bamboo flooring tops ordinary wood flooring in durability, stability and appearance. Bamboo is grass, not wood, making it an environmentally sound product as well. Abbey has several exotic bamboo suppliers to meet the needs of this popular product.

9 ABBEY APPROVED SUPPLIERS Carpet Manufacturers Alexander Smith Alexander Smith Living American Showcase American Studio Barrett Mills, Inc. Beaulieu Residential (Coronet, Caladium, Hollytex) Bigelow Commercial Blueridge Camelot Couristan CustomWeave Daltonian Design Weave Dixie Group Durkan Commercial Fibreworks Godfrey Hirst Gulistan Carpet, Inc. J. Mish Joy Carpets Karastan Karastan Contract Kraus Carpet Masland Carpets Mohawk Industries (Aladdin, Galaxy, Horizon, World, Wunda Weve) Mohawk Mohawk Commercial Nourison PacifiCrest Mills Peerless / Beaulieu Canada Rodeo Carpets Royalty Carpet Shaw Industries (Cabin Craft, Philadelphia, Queen, Cumberland, Salem, Sutton) Stanton/Royal Dutch Carpet Tuftex Unique Carpets, Ltd. Wunda Weve Fiber Products Invista (Stainmaster) Shaw Anso Nylon Solutia (Weardated) Hard Surfaces and Other Products Accord Accu-Cut/Brockie International Absolute Coatings Adex USA Alessco, Inc. Alexander Smith Alloc American Biltrite American Marazzi Tile American Olean Amtico Anderson Hardwood Antico Stone Aqua Mix Armstrong Resilient Armstrong Laminate Armstrong Wood Products (Bruce, Robbins, Hartco) Award Hardwood Azrock Bali Bruce Laminate Berry Floors Buy The Truck Bio-Pro Research BR-111 Carpetaid Classicaire Woodvents Columbia Flooring Congoleum Creative Edge Dal-Tile Domco Dune Ceramics Expama Flooring Faus Ferrazzano Golden State Flooring Host/Racine Hoboken Hardwood Interceramic IVC International Wholesale Tile Johnsonite Karndean K-Tech Mannington Mills, Inc. Mohawk Ceramic Mohawk Hardwood Mohawk Laminate Mirage Tile Mullican Nafco Natural Cork PGB Global Pergo Portobello Quick Step Laminates Royalty Ceramic Saloni Scandian Shaw Ceramic Shaw Hardwood Shaw Laminate Solistone Surface Art Tarkett Resilient Tarkett Wood (Harris-Tarkett) Vielli Plank Wilsonart International Zamma Corporation Padding Manufacturers Carpenter Company Flexible Foam GFI / Foamex Leggett and Platt MP Global Vantage Industries, Inc. Area Rugs Central Oriental CMI Colonial Mills Couristan Rugs Dalyn Rugs Gulistan Rugs Joy Rugs KAS Rugs Masland Rugs Merida Meridian Mohawk Select Momeni Rugs Nourison Rugs Rodeo Safavieh Shaw Living Sphinx Stanton Rugs The Rug Market Zoroufy Stair Rods Window Coverings Kathy Ireland Windows by Alta Prestige Window Fashions Suncoast Window Fashions