1. NATURAL STONE & TILE PLR RESET VENDOR FORUM Reset Dates Phase:1 June 4-8, 2012 (Reset#12467) Phase 2: July 2-6, 2012 (Reset#12468) Phase 3: August 6-10, 2012 (Reset#12470) 1

2. Agenda –Reset timelines –Forecasting & Replenishment –Signage & display board requirements & approval process –Flyer/advertising support –Drop items exit strategy –Store associate training –Whatever/Whenever 2

3. New releases/ Promo pod Designer mosaics CURRENT NEW Reset timelines Phase 1 (June 4-8) Essentials Marble threshold Clearance Zone (June-August) 3 FOR COMPLETE ITEM LISTING PER PHASE, PLEASE REFER TO ITEM LISTING PER PHASE PER VENDOR EXCEL DOCUMENT AVAILABLE ON LOWES LINK

4. New releases/ Promo pod Designer mosaicsEssentials Natural StonePorcelain /Ceramic tile Porc /Ceramic tile Clearance Zone (June-August) Fashion rug CURRENT NEW Reset timelines Phase 2 (July 2-6) 4 FOR COMPLETE ITEM LISTING PER PHASE, PLEASE REFER TO ITEM LISTING PER PHASE PER VENDOR EXCEL DOCUMENT AVAILABLE ON LOWES LINK

5. New releases/ Promo pod Designer mosaicsEssentialsNatural StonePorcelain /Ceramic tile Porc /Ceramic tile Specialty tile Clearance Zone (June-August) CURRENT NEW Reset timelines Phase 3 (August 6-10) 5 FOR COMPLETE ITEM LISTING PER PHASE, PLEASE REFER TO ITEM LISTING PER PHASE PER VENDOR EXCEL DOCUMENT AVAILABLE ON LOWES LINK

6. Forecasting & Replenishment 6

7. Forecasting Deseasonalized Demand (DD) Weekly rate of sale for an item at a store, based historical trends and statistical model. Updated weekly for every store/item Base Index (BI) Weekly contribution of that week to the average week; grouped together they form a profile Forecast = DD * BI + Override 3 Types of Forecasts Demand – The quantity forecasted to be sold in the stores each week. Order- Fcst purchase order quantities expected to be placed in the week specified. Shipment- Fcst purchase order quantities we expect the vendor to ship in the week specified. 7

8. Weekly Vendor Forecast Sales forecast available to all vendors; order forecast available for product flowing through RDCs Allows vendors to pull sales, purchase order and shipment forecasts on a weekly basis by RDC Updated every week There is a 26 week and 52 week view of the forecast that you can access on Lowes Link. Full Webcast Training that all vendors should go thru. 8

9. Replenishment Channel Flow and Inventory Channel Inventory 1XD = cross dock. This means that you will receive one PO per week with a ship too location of our Milton DC #1469. OXD = Stocked at DC. This means that you will receive one PO per week with a ship too location of our Milton DC #1469. We will hold a limited amount of stock in the DC to handle store demand. With both the OXD or 1XD channels we would order in pallets but we may ship out to store in cases. FTL vs LTL Based on the volume we will purchase from you weekly drives whether we should order as FTL or LTL. The initial forecast is what drives if we order as FTL or LTL. After 2 to 3 months we will review the business again using the actuals to ensure the right decision was made. We will not be holding more than 4 to 6 weeks of supply in our network. Due to the unknown sales potential of these new programs our expectation is that the vendor holds 12 weeks of forecast in their facility to react to demand. 9

10. Vendor Compliance On-Time Shipment: 95% Requirement on Total Orders, no more than 2 days early or late 100% Requirement on New Store, New DC, Reset, Remerchandising, One- time and Promotional Orders Quantity Fill Rate: 98% Requirement on Total Monthly Orders 100% Requirement on New Store, New DC, Reset, Remerchandising, One- time and Promotional Orders Bar coding and Packaging Requirements: 100% Accuracy Requirement Core Carrier Compliance: 100% Accuracy Requirement 10

11. Signage & Display boards 11

12. 102Wing rack Designer mosaics POG/ 3 bays BeforeAfter Display/Signage components: Slider Product display board Product info card Storyboard (front panels only) 12

13. Designer Mosaics Wing rack POG Display/Signage requirements WING RACK PRODUCT DISPLAY BOARD Dimensions:14.5WX15 7/16H / Live area: 12Wx12H Source: Urban Stone Qty: 1 per item (Mosaic or Mosaic/Subway combo) Lowes price label 13 DONT FORGET TO FILL OUT THE WING RACK PRODUCT SPEC SHEET (1 per item)

14. Designer Mosaics Wing rack POG Display/Signage requirements WING RACK PRODUCT CARD Brand Item description: Line 1: Product name Line 2: sq.ft for item Item in use shot 3 reasons to buy item Feature #1 : Material Feature #2 : Where to use Feature #3 :Additional info/romance Lowes item# Dimensions:14.5WX15 7/16H Source: Pratt Qty: 1 per item Feature logo 14

15. Z Wall POGs/ 15 bays Natural Stone/ Porc Ceramic Tile Specialty tile Before After Display/Signage components: Z Wall product roomscene Z Wall Product display board C Channel card 15

16. Z Wall POGs Display/Signage requirements Z WALL PRODUCT DISPLAY BOARD Source:Product display: Urban Stone / Roomscene: Pratt Qty: 8 set per bay 16 DONT FORGET TO FILL OUT THE Z WALL PRODUCT DISPLAY BOARD SPEC SHEET/ INCLUDING MAPEI GROUT INFO (1 per z wall board)

17. Z Wall POGs Display/Signage requirements 17 Dimensions: 12W X5H Source: Pratt Qty: 8 sets per bay (complementing each Z Wall board) Brand Item description Product name and tile size Item in use shot (same in use shot as Z Wall roomscene) 3 reasons to buy item Feature #1 : Material Feature #2 : Where to use Feature #3 :Additional info/romance QR code or feature logo Lowes item# Z WALL C CHANNEL CARD

18. Urban Stone Art Att: Angelo Rao 7835 Hwy 50 Unit 10 Vaughan, ON L4L 1A5 arao@bellnet.ca 416-768-1001 Contacts Display/Signage requirements Wing rack & Z Wall product display boards Layout review/approval: jf.pelletier@lowes.com 416-730-7329 Technical requests: canadase@lowes.com Wing rack product cards/ C channel cards Z Wall roomscenes Wing rack & Z Wall spec sheets 18

19. Flyer/Advertising support 19

20. Advertising- Flyer Current and stylish in use image image Individual product image Silhouette -ideally other angles available Sell copy which: -romances the product -provides brief product description -- provides consumer benefits (why buys) Image requirements: minimum 150 dpi IMAGES & SELL COPY TO BE PROVIDED ON CD FORMAT Romance the product: This floor and wall tile combination emulates Roman themes beautifully and is easily used in checkerboard patterns while maintaining the elegance of the tile design Brief product description: 12X12 Navelli Ambrato Porcelain floor tile sold individually or in 9sq.ft carton Consumer benefit (why buys): Easy to clean Stain resistant <0.5% moisture absorption 20

21. Contacts Flyer/Advertising support 21 Item in use image/roomscene Individual product image (silouhette) Item sell copy CD Ship to address Lowes Canada Att: Darin Delvechio 5160 Yonge Steet Suite 200 Toronto, ON M2N 6L9 Questions: darin.c.delvechio@lowes.com

22. Drop items Exit strategy 22

23. Drop items Exit strategy Item countInventory on hand @ cost $ Weeks of supply 188$2,212,16332 Replenishment – Turn off All drop import vendor items+ All domestic vendor items with WOS>30 _________________________ Total: 108 items (58% of drops) All other drop items to be turned off 12 weeks prior to reset (by phase) Markdown Now->up to 45 days prior to reset: EDLP Less than 45 days to reset: Markdown optimization: 25%-75% off 23 Drop items inventory As of 03/13/2012