Vendor Manual – General Information Page 1

HAVERTYS BRAND

Furniture purchased under the Havertys Brand is produced exclusively for Haverty Furniture Companies, Inc. and cannot be sold in the United States by any other parties. Please refer to Purchasing Agreement, Sec. 6 “INTELLECTUAL PROPERTY; NONCOMPETITION IN APPROVED SELLER’S DESIGNS” for clarification of this policy. Exceptions to this policy must be approved in writing by an Officer of the Merchandising Department.

Please be aware that Havertys rewards any Associate with a $1000 finder’s fee for identifying Havertys branded items offered for sale in the United States by another party. The $1000 fee will be reimbursed to Havertys by the vendor selling the item to Havertys. Reimbursement will be in the form of a deduction from payments issued by Havertys to the vendor.

BUSINESS ETHICS POLICY

Havertys associates will maintain the highest ethical standards in the conduct of company affairs when dealing with vendors.

Under no circumstances may a vendor compensate a Havertys associate. All contests and promotions must be approved by an Officer of the Merchandise Department and run through the proper payroll procedures.

Novelty, promotional items or gifts of small value such as calendars, pens, pads, etc., are permitted. Gifts of perishable items usually given during the holidays such as cookies, nuts, etc., are acceptable. Gifts valued in excess of $50 are not allowed at any time.

POINT OF PURCHASE AND DISPLAY ITEMS

The Havertys branding initiative is a core focus of the Merchandising Department. No point of purchase materials, tags, or other display items can be distributed to any Havertys location or applied to any product without prior approval of an Officer of the Merchandise Department.

Vendor Manual – General Information Page 2

MATTRESS AND BOX SPRING SIZES (ISPA STANDARDS)

All major bedding manufacturers subscribe to the International Sleep Products Association standard for bedding products. Dimension sizes are allowed ± ½" tolerance. If a "bunkie" foundation is used, it shall have the same width, length and tolerances as the finished twin size box spring. Finished sizes are measured from seam to seam on the binding tape at the centerlines of the width and length.

International Sleep Products Association Standards

Mattress Box Spring (also called Foundation)

Twin 38 x 74 37½ x 74 (Use 38” width between rails due to ½” tolerance)

Twin Extra Long 38 x 79 37½ x 79 (Use 38” width between rails due to ½” tolerance)

Full 53 x 74 52½ x 74 (Use 53” width between rails due to ½” tolerance)

Full Extra Long 53 x 79 52½ x 79

Queen 60 x 79 59½ x 79 (Use 60” width between rails due to ½” tolerance)

Olympic® Queen 66 x 79 59½ x 79 (uses standard Queen Foundation)

King 76 x 79 37½ x 79 (Two Required) (Use 76” width between rails due to ½” tolerance)

California King 72 x 83 35½ x 83 (Two Required)

Vendor Manual – General Information Page 3

METAL BED FRAME BORING STANDARDS

6/6 King Size Metal Frame: 1. Exact length of Center to Center boring standard is: 74.375" (this is the ISPA standard and should be followed for Havertys products) 2. Maximum length of Center to Center boring that will work is 75.050" 3. Minimum length of Center to Center boring that will work is: 73.700" 4. The measurement from the floor to the bottom hole is 5.88" on center. 5. The measurement from the bottom hole to the top hole is 2 1/2" center to center. (Equal to 8.38" on center from the floor). 5/0 Queen Size Metal Frame: 1. Exact length of Center to Center boring standard is: 58.375" (this is the ISPA standard and should be followed for Havertys products) 2. Maximum length of Center to Center boring that will work is 59.350" 3. Minimum length of Center to Center boring that will work is: 57.400" 4. The measurement from the floor to the bottom hole is 5.88" on center. 5. The measurement from the bottom hole to the top hole is 2 1/2" center to center. (Equal to 8.38" on center from the floor). 4/6 Full Size Metal Frame: 1. Exact length of Center to Center boring standard is: 51.270" (this is the ISPA standard and should be followed for Havertys products) 2. Maximum length of Center to Center boring that will work is 52.240" 3. Minimum length of Center to Center boring that will work is: 50.300" 4. The measurement from the floor to the bottom hole is 5.88" on center. 5. The measurement from the bottom hole to the top hole is 2 1/2" center to center. (Equal to 8.38" on center from the floor). 3/3 Twin Size Metal Frame: 1. Exact length of Center to Center boring standard is: 36.022" (this is the ISPA standard and should be followed for Havertys products) 2. Maximum length of Center to Center boring that will work is 36.919" 3. Minimum length of Center to Center boring that will work is: 35.125" 4. The measurement from the floor to the bottom hole is 5.88" on center. 5. The measurement from the bottom hole to the top hole is 2 1/2" center to center. (Equal to 8.38" on center from the floor).

Vendor Manual – General Information Page 4

HAVERTYS NAMEPLATES FOR CASEGOODS

Every Havertys branded casegood piece that has drawers should have a Havertys nameplate. The nameplate should be placed in the top left hand side facing of the left drawer. If there are no drawers, a nameplate is not needed. Company: J.G. Edelen Hardware Company Contact: www.jgedelen.com

JGE China – Ms. Lansing Lee - edelenchina2@aliyun.com 86-18969819520 JGE US – Ms. Jessica Lawson - jessica@jgedelenva.com (276) 632-9750

Nameplate Description: 3”x 1.5” Havertys Drawer Nameplate, with Pins, Antique Brass Unit Price: $0.59 each, FOB Hong Kong (Purchasing factory is responsible for freight cost from Hong Kong to destination location). Shipping Method: Product can be shipped by ocean freight or by air courier. Product is shipped freight collect or prepay and add to invoice. Packaging: Packed in either 500 or 1000 pcs per carton with each nameplate in a poly bag. Nails will be bulk packed in a separate poly bag. Payment Terms: Net 30 Days

3” wide x 1.5” tall

Vendor Manual – General Information Page 5

HAVERTYS DECK LABELS FOR UPHOLSTERY

Every Havertys branded upholstery item that has loose cushions, should have a Havertys deck label. The label should be placed on the decking of the cushion. If there is no loose cushion, a label is not needed.

Company: Printcraft, Inc. Contact: marvinsmith@pcraftinc.com or jashby@pcraftinc.com or 336-248-2544 Nameplate Description: 5 ½” x 4” label on pressure sensitive satin cloth PMS Warm Grey 10 Unit Price:

1,000 = $291 5,000 = $267 10,000 = $256.44

Shipping Method: UPS or FedEX Payment Terms: Net 30 Days

5 ½” wide x 4” tall

Vendor Manual – General Information Page 6

CUSTOM LOOK AND SPECIAL ORDER

Havertys wants to give the customer as many options as possible. In domestic upholstery groups, in addition to the floored fabric of a particular frame/group, we like to offer 5-10 additional colors. These are referred to as “Custom Look” fabrics. They are sku’d in our system and are on a reorder point managed by our Supply Chain. We request that these skus be available to ship in 4-6 weeks. These fabrics should have no cost upcharge to Havertys. Havertys also has a special order program. We limit this to 250-300 of a vendor’s best-selling fabrics. A cost upcharge should be submitted each time a new frame/group is submitted. The vendor must keep up with a list of fabrics available for special order. An updated list should be submitted upon both fabric adds and drops. Custom Look Program -5-10 additional fabrics (please send swatches large enough to capture the repeat). -No additional cost. -Product available in 4-6 weeks. -Pillow fabrics should not have an upcharge, the upcharge is based on the body fabric. Ex. Floored fabric is green with yellow pillows. Custom Look color is red with blue pillows, along with other options. The customer should be able to order the red sofa with accent pillows in any of the other fabrics at no charge since the body fabric determines the upcharge. -Vendors must make a handle of fabrics to send to each store and one to Home Office attn.: Cathy Coskrey. Handles must be sent to stores one month before arrival of product.

-Fabric swatches and handles should be 13” wide x 18” long. -A name will be assigned to each vendor or program. -Havertys will design the logo and send to the vendor. The vendor will have the covers printed, laminated, grommeted. Using 3 ½” metal rings, the cover should be attached to the fabric swatches. The rings should then be attached by a wooden handle. -Each swatch should be labeled in the bottom right corner whether it is body/chair/pillow; fabric number or name; fabric content; cleaning code. Havertys will provide the label template. It is best to NOT attached fabrics together in case of drops and removal of fabrics. -Handles should be packaged securely to avoid crushing the laminates. -Wooden handles can be purchased through Smith Furniture Supply Co. 336-769-1362 or smithfur@bellsouth.net.

-A completed fabric handle should be sent to Cathy Coskrey for approval BEFORE sending to stores.

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Example of laminate cover Template for laminate with handle

Example of swatch with label Template of swatch label

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Special Order Program -Max 300 fabrics -Product available in 8-10 weeks. -For small quantities of special order fabrics, a handle similar to the Custom Look handle may be used. For larger quantity programs, Havertys may decide to use a rack exclusive to that vendor or program.

Example of fabric rack Template for fabric hanger

Example of fabric hanger (closed) Example of fabric hanger - open for special order rack

Vendor Manual – General Information Page 9

Photography and Promotions

Every piece of furniture within a group will be photographed. Both size beds will be shot, all pieces of a sectional will be individually shot, sleeper and sofa will be shot (unless noted that they are identical in appearance). Here are a few points to the process:

• Havertys will be responsible for paying for the studio photography shoot and you will be responsible for getting the merchandise to and from the studio. If photography is done at an off-site location, special arrangements might be made regarding costs.

• You will generally have 3 weeks notice to get your product to the studio.

• Do not bill Havertys for photography samples, as they will be returned upon completion. If the product needs to be pulled from our stock, we will issue a DMR chargeback for 50% of the FIFO cost of the item.

• A representative from the studio will contact you when the photography is complete and your product is available for pickup.

• Please see Havertys Partner Website at www.havertys.com/partner on the “promotions tab” for more information and to find out when your product will be promoted.

The next page is a sample of the email you will receive when we request product to be shipped for photography.

Vendor Manual – General Information Page 10

REQUEST FOR PHOTOGRAPHY SAMPLES – EMAIL EXAMPLE

We are requesting the items below for photography. Please note the following: 1. Photography pieces should be EXACT to production pieces. Market samples with any kind of change (finish, fabric or construction) should not be submitted. If incorrect product is sent, you will be responsible for a re-shoot fee. 2. Please send tracking or notify me when the product will be shipping. Also, please email the delivery information promptly upon arrival. 3. Make certain to identify each piece by the same item # as listed below. 4. Do not invoice Havertys or the photography studio for these items. 5. Samples will be available for pick-up immediately after photography is completed. You can follow up with the studio for status. Items not picked up after 45 days will be donated. Send the following items FREIGHT PREPAID to: Kreber Studios 221 Swathmore Ave. High Point NC. 27263 Phone: 336-861-2709 Attention: Barbara Bodenhamer Tag them as: HAVERTYS HVT # (# will be provided) SAMPLES SHOULD ARRIVE NO LATER THAN ??/??/???? (date will be provided) Samples Include: (Items will be listed) Please confirm your receipt of this email and an approximate date of arrival. If there are any problems with making the requested arrival date, please contact me as soon as possible. Thank you for your assistance,

Vendor Manual – General Information Page 11

SKU INFORMATION

At Havertys, each piece of merchandise has a stock keeping unit (SKU) that identifies it. The SKU is the number that will be used to order, sell, and deliver merchandise. If an item is packaged in two boxes (ex. table top and table base) it should will have two skus. The SKU number is 9 digits long and identifies different types and classes of merchandise.

Ex. Sku 0-4500-0000 -The first number identifies the type of SKU -0-3 is a corporate SKU -4 is a special order SKU -5 is a group SKU (two or more skus – ex. table top and table base together) -6 is a sample SKU -The second number identifies the class of SKU -10 Guardsmen -25 Upholstery -30 Sleepers -35 Recliners -40 Occasional -45 Bedroom -50 Mattresses/Bedding -55 Outdoor -60 Formal Dining -65 Casual Dining -70 Accessories -75 Linens -80 Rugs -85 Lamps Classes 10, 70, 75, 80, and 85 are considered to be “take with” items.

Vendor Manual – General Information Page 12

NUMERIC IDENTIFICATION OF HAVERTYS LOCATIONS

All Havertys locations have a four-digit accounting code assigned. All purchase orders, Credit Memos, DMR’s and RTV’s and many other reports have this four-digit code at the beginning of all references. Distribution facilities all start with a 4 in the four-digit code. All retail stores start with a 1 in the four-digit code. Examples of the use of location codes are: #4010, Eastern Distribution Center, Braselton, Georgia -Purchase order numbers start with #4010###### -Credit Memos start with CM4010########## You can reference the list of Havertys Stores and Warehouses to obtain the name, location, phone number and Manager of each facility. Please request an updated listing from a member of the Merchandising Department. DISTRIBUTION Havertys Distribution System uses a combination of three distribution centers, three home delivery centers and 13 local market cross-docks. The Distribution Centers (DCs) are designed to shuttle prepped merchandise up to 250 miles for next day home deliveries, and serve cross-docks and home delivery centers within a 500-mile radius. The home delivery centers are freestanding facilities that receive, prep and deliver furniture, providing service to markets within an additional 200 miles. Local market cross-docks process inventory in the same manner as a home delivery center but only serve a single outlying market.

The Eastern Distribution Center (4010-EDC) is located in Braselton, GA The Florida Distribution Center (4020-FDC) is located in Lakeland, FL The Western Distribution Center (4030-WDC) is located in Coppell, TX The Virginia Distribution Center (4011-VDC) is located in Colonial Heights, VA

Vendor Manual – General Information Page 13

ACCOUNTING PROCESSES AND CONTACTS

Randy Davis 404-443-4250 VP, Corporate Controller rdavis@havertys.com Gloria Roberts 404-443-2900 x 1208 Accounts Payable Manager groberts@havertys.com The following is a summary level overview of the Havertys merchandise invoice process from receipt of invoice to payment of same.

1) Vendor mails invoice “Attention Accounts Payable” to the distribution center which received the product being invoiced. Distribution addresses are as follows:

Eastern Distribution Center – EDC - 4010

1090 Broadway Avenue Braselton, GA 30517

Florida Distribution Center - FDC - 4020

7100 Havertys Way Lakeland, FL 33805-1416

Virginia Distribution Center - VDC – 4011

1720 Port Walthall Drive Colonial Heights, VA 23834

Western Distribution Center – WDC - 4030

770 Gateway Boulevard Coppell, TX 75019

2) Distribution facility personnel match the invoice with the related purchase order, bill of

lading and proof of delivery. Upon completion of this process, the invoice is approved for payment.

3) Once the invoice is approved for payment, it is transmitted electronically from the distribution center system to the corporate office accounting system.

4) As an invoice is received electronically at the corporate office, it is posted to the vendor’s

accounts payable account which dictates payment terms.

5) As payment terms are reached, a check is produced and mailed to the vendor.