Home Solutions Membership Agreement Overview

Member Benefits

The Company uses its best efforts to:

• negotiate agreements with suppliers of Products which may include negotiating discounts, allowances, special services and/or rebates for the benefit of Members from such suppliers;
• provide marketing programs, training programs and management programs;
• provide a license to use some of the Marks upon the terms and conditions set forth in this Agreement;
• pay Members a patronage dividend based upon the member’s business which is done through the Company cooperative. Member rebates incentives are paid into the cooperative whereby they are split between members and the Company at a 50/50 ratio or more (see terms and conditions for additional detail).

Member Duties

Member will use all commercially reasonable efforts to:

• conduct business in a first-class manner and according to the highest standards of integrity in the floor covering industry;
• promote the unity and strength of the network with the attendance of key management personnel at the annual FloorExpo National Conference. In addition, member shall endeavor to participate in the regional meetings and trade shows;
• support the Company’s partnered suppliers by meeting purchase requirements through suppliers who provide incentives or rebates to Company members (“Approved Suppliers”) and to achieve the minimum annual volume requirements of, the greater of: (i) During the first 12 months of the agreement, $500,000, or 33% of the Member’s total purchases volume; thereafter the greater of (ii) $1,000,000 or 45% of the Member’s total purchased volume.

Agreement Term and Consideration

Upon acceptance by the Company, the Agreement is for three (3) years. The agreement includes a provision where it shall automatically renew for additional one year periods unless either party gives the other party written notice not to renew this agreement.

One-Time Membership Fee

• Member shall pay Company a one-time membership fee of $18,900 as follows: $2,900 payable upon execution of this Agreement and the balance paid through the withholding of the first $16,000 of patronage dividends earned by the Member through the Company’s incentive programs.
• Member must also purchase one share of cooperative stock for $100.
• Down payment for the membership fee and one share of stock totals $3,000.

Monthly Membership Dues

• All Members pay monthly network dues of $299.