Marketing Funds

Tradewinds Climate System
Marketing Development Funds (MDF) Program Guidelines

The Marketing Development Funds (MDF) Program provides Distributors with access to cooperative marketing funds to support pre-approved marketing activities that promote brands supplied by Tradewinds Climate Systems.

1. MDF Calculation & Accrual

• MDF is calculated as a percentage of the Distributor's product purchases from Tradewinds Climate Systems.
• MDF accrues at a rate of 2% of the Distributor's Gross Purchases, defined as gross purchases net of outbound freight.
• MDF-supported marketing activities are funded on a 50/50 cost-share basis between Tradewinds Climate Systems and the Distributor, unless otherwise approved in writing.
• MDF funds accrue within the applicable fiscal year only and do not roll over into subsequent periods. Unused funds are forfeited at year-end.

2. Program Administration & Approval

• MDF requests are reviewed and processed on a first-come, first-served basis, subject to available funds.
• Each marketing activity requires separate approval and must include:
  • One MDF Request Form submitted prior to execution, and
  • One MDF Claim Form submitted after completion of the approved activity.
• Submission of a request does not guarantee approval.
• Approval of MDF requests is at the sole discretion of Tradewinds Climate Systems, regardless of prior approvals, historical practices, or similar past activities.
• Tradewinds Climate Systems will make every effort to respond in writing within 30 business days of complete request submission.
• Approval of one marketing activity does not constitute approval of future, recurring, or similar activities.

3. Eligible Marketing Activities

Eligible marketing activities include, but are not limited to:

• Advertising (print, digital, radio, outdoor)
• Promotional items
• Sponsorships
• Events and trade shows
• Online and digital marketing
• Direct mail and email campaigns

All approved activities must:

• Promote brands supplied by Tradewinds Climate Systems
• Use authorized branding, logos, and approved messaging
• Align with the activity description and materials submitted at the time of approval

4. Definition of Promotions & Incentives

• MDF-supported activities are intended for branding, advertising, and awareness-driven initiatives.
• Activities involving price discounts, rebates, giveaways, or other promotional incentives must:
  • Be clearly disclosed at the time of request
  • Include pre-approved marketing materials that define the offer
  • Be approved prior to execution
• Altered, recreated, estimated, or post-event documentation will not be accepted.
• Expenses incurred outside the approved scope, dates, or materials are not eligible for reimbursement.

5. MDF Request Form Submission

Distributors must submit MDF Request Forms online at: www.borealheatpump.com/marketingfunds

Each request must include:

• A detailed description of the proposed marketing activity
• Vendor estimates or quotes outlining anticipated costs
• Target audience details and expected reach or impact
• Draft marketing materials or examples, when applicable
• Activity dates and execution timeline

Request Forms may be submitted:

• No earlier than 90 days prior to the activity
• No later than 15 days prior to the activity

Requests submitted outside these timeframes may be denied.

6. MDF Claim Form Submission & Documentation

Upon completion of an approved activity, Distributors must submit an MDF Claim Form with the following:

• Final, unaltered invoices or receipts issued by the original vendor
• Proof of execution corresponding to the approved activity, which may include:
  • Photographs
  • Screenshots
  • Event agendas
  • Attendee lists or circulation data

Documentation must:

• Match the approved activity description
• Reflect the approved materials, dates, and scope
• Clearly support the claimed expenses

Tradewinds Climate Systems reserves the right to:

• Request additional or clarifying documentation
• Deny claims that do not align with the approved request, materials, or documentation standards

7. Reimbursement & Account Adjustment

• Approved MDF claims will be reimbursed via an adjustment issued to the Distributor's Tradewinds account.
• An adjustment will be issued to the Distributor's account within 30 days of claim approval.
• Claims that are incomplete, inconsistent, or unsupported may be delayed or denied.

8. Year-End Processing Notice

Due to year-end volume and holiday schedules, MDF claims submitted in December may be reviewed and processed beginning in January of the following calendar year. Eligibility is not impacted provided:

• The activity was approved and completed within the applicable fiscal year, and
• All required documentation is submitted in full.

9. Audit Review

• All MDF activity, approvals, and reimbursements are subject to internal and external audit review.
• Tradewinds Climate Systems reserves the right to review submitted documentation and approvals for accuracy, consistency, and compliance with program guidelines.

For questions regarding the MDF Program, please contact:

Tatiana Force
Sr. Marketing Manager
Tatiana.Force@twclimate.com
754.707.4220
www.borealheatpump.com