PEOPLE AND CULTURE Code of Ethics

“Prospering with Rona”

Code of Ethics

PEOPLE AND CULTURE

2nd edition

TABLE OF CONTENTSA. PURPOSE OF THE CODE 2

B. APPLICATION AND IMPLEMENTATION 2

C. RONA’S MISSION AND VALUES 3

D. CONFLICTS OF INTEREST 4 AnnualDeclarationofInterests 5 Gifts,Gratuities,FavoursandPersonalBenefits 5 Gifts 5 Meals 5 Travel 5 Solicitationand“EmployeePricing” 6FamilyandPersonalTies 6 OutsideEmployment,BusinessOpportunitiesandOtherActivities 7 UndueInfluenceOvertheConductofAuditActivities 7

E. PROTECTING AND PROCESSING INFORMATION 8 Confidentiality 8 DisclosureofInformation 9 InsiderOffenses 9 ProtectionofPersonalInformationofCustomersandBusinessPartners 10 ProtectionofEmployees’PersonalInformation 10 SecurityofComputerSystemsandNetworks 11 BooksandRecords 11 ContractNegotiations 12 PersonalUseofInternetAccessProvidedbytheCompany 12 SocialNetworking 12

F. DEALING WITH CUSTOMERS AND COMPETITORS 13 SalesofProductsandServices 13 RespectfortheCompetition 13 CompetitionLaws 14

G. PROTECTING THE COMPANY’S ASSETS 14

H. A HEALTHY, RESPECTFUL WORK ENVIRONMENT 15 WorkplaceDiversity 15 EmploymentEquity 15 DiscriminationandHarassment 15 OccupationalHealthandSafety 17 Alcohol,DrugsandOtherSubstances 17 Judicialaffairs 18 WorkplaceViolence 18

I. COMPLIANCE WITH LAWS, REGULATIONS AND INTERNAL POLICIES 18

J. BREACHES TO THE CODE 19

K. REPORTING OF OFFENSES 20

L. ADDITIONAL INFORMATION 20

01Code of Ethical ConductMESSAGE FROM THE

PRESIDENT AND CHIEFEXECUTIVE OFFICERSinceitscreationin1939,RONAhasderivedstrengthfromasharedvisionanddeeplyrootedvaluestowhichweallbound.Service,unity,respect,searchforthecommongoodandsenseofresponsibilityaremorethanwords:thesevaluesrepresentacollectiveandindividualcommitment.

RONA’svaluesandCodeofEthicscountamongthereasonswhyourcustomers,employees,investors,andallbusinesspartners(suppliers)placetheirtrustinus.TheyknowthatRONA’sbusinessisconductedaccordingtothehigheststandardsofprofessionalism,honestyandintegrity.

Notwithstandingthesesharedvalues,thefastpaceofchangeintoday’sworldandtheacceleratedgrowthofourbusinessmakeitnecessaryanddesirabletodrawupasetofwrittenrulestowhichwecanrefer.

ThisupdatedversionofourCodeofEthicscontainsadjustmentswhich,whilestillinlinewithourcorevalues,reflectthenewrealitiesofourorganizationaswellasthechangingsocialcontextinwhichRONAoperates.

Thisdocumentisthusacompilationoftheprinciplesandstandardswhicheachofuspersonallyundertakes.Naturally,itdoesnotcovereverysituationthatwemayencounterwhileexercisingourdailytasks.Ifasituationwithethicalimplicationsshouldarise,theemployeeshoulddiscusswiththeirsupervisorhowthesituationshouldbehandled.Whenthequestionrequiresdeeperanalysis,itwillthenbesubmittedtotheCorporateExecutiveCommittee.

ThisCodeofEthicsisintendedfortheuseofallRONAemployeesaswellasitsadministratorsandemployeesofitsfranchisedstoresandaffiliateddealer-owners.AllmustcomplywiththisCode,asthereputationofourorganizationdependsonit.RONAfirmlybelievesinthesoundnessofthebusinessethicsprinciplesthatunderpinthisCode.WearealsotakingmeasuresneededtopromoteandimproveourbusinessrelationshipswithourbusinesspartnersandconsultantsbasedonethicalstandardssimilartotheonesinthisCode,andhaveadaptedthemtothesecontractualbusinessrelationships.

.

Robert DuttonPresidentandChiefExecutiveOfficerRONAInc..

02Code of Ethical Conduct PURPOSE OF THE CODE

As RONA employees, everyone is responsible for being familiar with the Code of Ethics and understanding how it applies to their job. AtRONA,ethicsgofarbeyondmerecompliancewithstandardsorrules.TheconceptofethicalconductcallsforeveryonetobepersonallyresponsiblewhenexercisingtheirdutiessothatthespiritofRONA’svaluesandofthegeneralprinciplesofethicsisreflectedonadailybasis.

ThisCodehasbeenpreparedtohelpeveryoneunderstandthegeneralprinciplesofethicalconductandtopromotebestbusinessoperatingpractices.

ItistobenotedthattheCodemaybeamendedfromtimetotimetotakeaccountfornewcircumstancesoramendmentstolawsandregulations.TheCodeoffersadviceonthemostcommonsituationsthatmaybeencountered.However,itdoesnotdealwitheveryconceiv-ablesituation.EmployeesareinvitedtoreadtheCodeandotherCompanydocumentsandpoliciesdealingwithcertainissuesingreaterdepth,availableonZONE.RONA.ca.

APPLICATION AND IMPLEMENTATIONThe RONA Code of Ethics applies to employees and directors of RONA, as well as to those of its subsidiaries, franchised stores and affiliated dealer-owners, and any person reporting to them or to their representatives. EveryemployeemustensurethatthestandardsandguidelinessetforthinthisCodearerespectedandtakethenecessarystepstocorrectanybreachtotheCode.

RONA’sExecutiveCommitteeisresponsibleforapplyingtherulesandevaluatingcasesthatarebroughttoitsattention.

ManagershavetheresponsibilitytopromotebehaviourthatisinaccordancewithandsupportingtheCodeofEthics.TheyarealsoresponsibleforensuringcompliancetotheCode.

ThePeopleandCultureDepartmentisresponsiblefordistributingtheCodetoallemployeesofRONAinc.anditssubsidiaries.ItisalsoresponsibleforapplyingtheCode,coachingmanagersaboutitsapplication,andkeepingtheCodeuptodate.

A.

B.

03Code of Ethical ConductRONA’S MISSION AND VALUES

At RONA, we achieve our aim by standing out: providing a unique, remarkable, consistent customer experience with the right home products and construction materials at the right price. Weaccomplishourmissionthrougharetailanddistributionnetworkthatseekstopositionourcorporateunits,affiliateddealer-ownersandfranchisedstoresasleadersintheirrespectivemarkets.

RONAfulfillsitsaimanditsmissionasacompanythattakesresponsibilityfortitssocial,economicandenvironmentalimpactonthecommunitieswhereitdoesbusiness.

RONA’svaluesguideitsday-to-daybusinessmethodsanddecisions.TheydeterminethemeansbywhichtheCompanyintendstoretainleadershipofitsbusinesssector.Bybuildingaconsensusamongitsdealersandemployeesaroundfivecoreprinciples,RONAwishestofosteroptimalconditionsforitsgrowthanddevelopmentinahighlycompetitiveindustry.ThevaluesadvocatedbyRONAarenotmerewordsbutratherrequireeveryemployeeatRONAtoadoptcertainbehavioursonaroutinebasis.

ServiceRONAanditsemployeesarecommittedtocustomerservice.ThisunconditionalcommitmentisboththerationaleforandtheinstrumentofRONA’sprosperityandgrowth.Thecommitmenttoservicealsoappliestointernalrelationshipsbetweendepartments,functionsandcolleagues.TheeffectivenessofRONA’soperationsdependsonthequalityofservicethateachemployeedeliverstotheothers.

UnityUnityisafoundingprincipleatRONA.TheCompanyconsidersthatallitsdealers,subsidiaries,corporatedepartmentsandallofitsemployeesarepartofoneteamsharingoneobjective,whichistoprovidethemostefficientandenjoyablestoreexperiencepossibletoeachandeveryoneofourcustomers.OurcommitmenttomaintainthisunityisthedrivingforcebehindalldevelopmentprojectsundertakenbytheCompany.

Respect Respectmanifestsitselfintheresourcesweinvestinourpeople’sdevelopmentandintheattentivewaywelistentoeveryone—fromemployeestoshareholders,customersandbusinesspartners.Respectisalsoreflectedintheworkingconditionsandintheworkenvironmentweprovidetoouremployees.

Search for the Common GoodInthesearchforthecommongood,RONApartnerswithpeopleandbusinesseswhobelieveinthebenefitsofbeingpartofagroup,andwhoacceptitsoperatingguidelines.RONA’sactionsarealwaysguidedbythecollectiveinterestofouremployees,investorsandcustomers.ThesearchforthecommongoodalsoextendsoutsidetheCompanytoincludeoureconomicandsocialpartners.

Sense of ResponsibilityAtRONA,eachpersonhasthelatitudetoimplementwhateveractionstheyfeelarenecessarytosupporttheCompany’ssuccess.Bydevelopingastrongsenseofrespon-sibilityamongouremployees,byencouragingthemtoworkinawaythatisrespectfulofothersandinaccordancewiththeirowncommitments,byencouraginginitiativesandsupportingprojectswithintheorganization,RONAgivesourpeopletheopportunitytogrowapacewiththeCompany.

C.

04Code of Ethical Conduct CONFLICTS OF INTEREST

RONA respects everyone’s right to manage their own affairs. However, each employee must make sure to avoid any situation in which their personal interests could be in conflict or even appear to be in conflict with RONA’s interests. WhenemployeescarryouttheirdutiesandfunctionsonbehalfofRONA,theymustactatalltimesinthebestinterestsoftheCompanyandperformtheirdutiesandobligationsfullyandobjectivelywithoutallowingtheirpersonalintereststoconflictwiththoseofRONA’s.

EmployeesshouldavoidsituationsinwhichtheycouldfindthemselvesasbeinginanapparentoractualconflictofinterestorappeartobeusingtheirpositionatRONAtogainapersonaladvantageforthemselvesoranyoneelse.

Allemployeesshouldalsoavoidsituationsinwhichtheirpersonalinterestscouldcom-promiseorappeartobecompromisingtheirabilitytomakeobjectivedecisionsthatserveRONA’sbestinterests.

It is impossible to describe in detail all the circumstances where conflicts of interest may occur. Even if an employee feels he or she is not behaving in a reprehensible manner, there may sometimes be an appearance of conflict. That may be just as harmful as an actual conflict of interest. When in doubt, employees should ask themselves:

•WillIgainpersonallyfromthis?

•Couldthisresultinafinancialorotherbenefitforme,arelativeorafriend?

•WouldIbeembarrassedtodiscussthiswithmysupervisorormycolleagues?

•WouldIactdifferentlyifafriendorrelativewerenotinvolved?

•Couldsomeoneelseviewthisasaconflictofinterest?

Iftheanswertoanyofthesequestionsisyes,thereisarealpotentialforconflictofinterestandemployeesshouldnotproceedorshoulddiscussthematterwiththeirimmediatesupervisor.Arealorperceivedconflictofinterestisaseriousmatter.Donothesitatetodiscussitandaskforguidance.

D.

Did you know that hiring a relative could be a conflict

of interest?

05Code of Ethical Conduct

Annual Declaration of InterestsRONAdirectorsandseniorexecutives,aswellasmerchandisersandassistantmerchandisersmustcompleteanannualstatementofinterestinwhichdescribesfamily,businessorfinancialrelationshipsofemployeeswithRONA’sbusinesspartnersordirectcompetitors.

Gifts, Gratuities, Favours and Personal BenefitsGifts

Employeesmaynotacceptgifts,gratuities,favoursorpersonalbenefitsfrombusinesspartners,exceptincertainlimitedcircumstanceswithlimitedimpact,andwhenthegift’svalueisunsubstantial.

Gifts,gratuitiesorfavoursmaybeperceivedasameansofundulyinfluencingbusinessrelationsandplaceanemployeeinasituationofaconflictofinterest.Everyemployeehastheresponsibilityofavoidinganytypeofsituationinvolvingaperceivedoractualconflictofinterest.

Thatiswhynooneshouldacceptanygiftsorfavoursfrombusinesspartnersunlesstheyareinfrequent,unsolicitedgiftsorfavoursofunsubstantialvalue.Agiftthatisworthlessthan$50isgenerallyconsideredtobeofunsubstantialvalue.

Ticketstoalocalsportingorculturalactivityorarecognitioneventforabusinesspartner’scustomersarealsoconsideredasacceptablegiftsorfavoursaslongasthebusinesspartnerisalsoaparticipantintheseevents,andtheyareinfrequent.Theseactivitiesmusthoweverbeofshortdurationandofreasonablevalue.Forexample,onehockeygameduringtheseasonwouldbeacceptable,butanentireweekendattheF1GrandPrixwouldnotbeacceptable.

AnygiftreceivedduringanactivitywithabusinesspartnerissubjecttotherulesofthepresentCodeofEthics.

Cashorequivalentgifts(giftcertificates,creditorpaymentcards)areneveracceptable,regardlessoftheirvalue.

Inallcases,agiftorfavour,regardlessofitsvalue,mustbereportedtotheemployee’ssupervisorwhowilltakeactionifthegiftorfavourmaycallintoquestionRONA’sortheemployee’simpartiality.Forexample,duringnegotiationsorcallsfortenderswithabusinesspartner,anygiftsorfavoursmustbeconsideredinappropriateregardlessoftheirvalue.

Anygiftdeemedinappropriatewillbereturnedtothebusinesspartner,orwillbehandedouttothedepartment’sstafforusedasaprizeorrewardduringsocialactivitiesinvolvingstore,serviceanddistributioncentresemployees.

ItistobenotedthatallsamplesprovidedbyacurrentorprospectivebusinesspartneraretheproprietyofRONA.

Meals

Generally,businessmealswithbusinesspartnersortheirrepresentativesshouldbeofareasonabledurationandRONAshouldnormallypayfortheemployee’sshare.

Travel

TripsofanytypeofferedbybusinesspartnersshouldbedeclinedunlesstheyaredeemednecessaryandapprovedinadvancebyaRONAvicepresident.Insuchcases,theallocationofexpensesbetweenRONAandthebusinesspartnerwillbedeterminedsoastoavoidaconflictofinterestortheappearanceofaconflictofinterest.

Itisforbiddentoacceptanypersonalorleisuretripsorextensionsofbusinesstripsforpersonalorentertainmentpurposesofferedbyabusinesspartner.


Solicitation and “Employee Pricing”

Solicitingdonations,gifts,sponsorshipsorfinancialcontributionsfrombusinesspartnersonbehalfofRONAispermitted,butisonlyallowedwhenaspecificauthorizationisgivenbyadirectororvicepresident,andiscarriedoutinaformalmanner,usuallyinwriting.

ItisstrictlyforbiddenforaRONAemployeetoaskforabusinesspartnerdiscount,favourorpersonalgiftfortheirownorsomeoneelse’sbenefit.Inaddition,noemployeemaymakepurchasesforthemselvesorothersdirectlyfromabusinesspartner.Tobenefitfromarebateonproductsofferedbybusinesspartners,allemployeepurchasesmustbemadeatparticipatingstoresorindesignateddistributioncentres.Employeediscountprogramsareappliedinaccordancewiththecurrentpolicy.

BusinesspartnersundercontractwithRONAarealsosubjecttoacodeofethicsforbiddingthemfromgrantingfavours,giftsorbenefitstoRONAemployees.Anyemployeesuspectingthatabusinesspartnerisactinginareprehensiblemannershouldinformtheirimmediatesupervisor.

Family and Personal TiesInordertopreventaperceivedoractualconflictofinterest,anyfamilyorpersonalrelation-shipwithanotheremployee,withacompetitor’sseniormanagerormajorshareholderorwithabusinesspartnershouldbereportedtotheemployee’simmediatesuperior.Together,theemployeeandthesupervisorwillconsiderwaystoavoidanyperceivedoractualconflictofinterest,andpreventapersonalrelationshiporotherfromhinderinganemployee’sabilitytoactintheCompany’sbestinterest.

Ingeneral,RONAwilltakeallthenecessarymeasurestoavoidsituationsinvolvingasupervisoryrelationshipbetweenmembersofthesamefamily.

Inallcaseswhereemployeeshaveapersonalorprofessionalrelationshipwithanemployeefromcompetingbusinessesorbusinesspartners,theyareresponsibleformaintainingtheconfidentialitylevelnormallyexpectedfromRONAemployees.Incaseofdoubt,employeesshoulddiscussthematterwiththeirimmediatesuperior.

Theseguidelinesarenotintendedtodiscourageemployeesfromreferringfriends,acquaintancesorfamilymemberswhohavetherequiredskillsrequiredforpositionsatRONA.


Outside Employment, Business Opportunities and Other ActivitiesEmployeesarefreetodowhattheylikeoutsideofworkinghours.However,theseotheractivitiesmustnotbeinactualorapparentconflictwithRONA’sactivitiesorrestrainemployeesfromperformingtheirduties.

Consequently, employees may not:

•workforacompetitorofRONA;

• setupabusinessthatoffersproductsorservicesthatcompetewithRONA;

• sellorpromoteathirdparty’sproductlineorservicesifsuchproducts andservicesareincompetitionwithRONA;

• usetheCompany’sequipmentorfacilitiestodopaidorunpaidworkforanother organizationunlesstheyhavereceivedspecificapprovalfrommanagement(for exampletosupportacharitableorphilanthropicorganization);

• acceptanyotheremploymentorundertakeanyactivitythatcouldpreventthem fromperformingalltheirdutiesfortheCompanyfullyandinacompetentmanner;

• takeadvantageofanopportunityarisingfromusingeitherRONA’sassets orinformationthatisnotpubliclyavailable;

• conducttheirbusinessduringworkinghoursand/orinRONA’sfacilities;

• unlesstheyhavebeenexpresslyauthorizedtodosobyRONA’smanagement, supportapoliticalactivityorgroupintheCompany’sname.However,RONA employeesmaysupportpoliticalgroupsoractivitiesintheirownname.

Someemployees,aspartoftheirresponsibilities,havetorepresenttheCompanyinsocialeventsinvolvingcustomers,businesspartnersoremployees.Theseeventsmaytakeplaceduringoroutsideregularworkinghours.Itisexpectedthatemployees,intheseoccasions,willbehaveinaresponsiblemannerandthattheywillnotactinanywaythatcouldcauseprejudicetotheorganization.Itisalsoexpectedthatemployeeswilltakeactionstopreventanysituationwhichcouldposeathreattothephysicalintegrityofparticipantsintheseevents.

Undue Influence Over the Conduct of Audit Activities Employeesareprohibitedfrommanipulating,misleading,orfraudulentlyinfluencingRONA’sexternalorinternalauditors.Theyarealsoprohibitedfromplacingthemunderduress.

08Code of Ethical Conduct E. PROTECTING AND

PROCESSING INFORMATIONConfidentialityIncarryingouttheirduties,employeesmayhaveaccesstoconfidentialinformationorbecomeawareoffactsoreventsthatcouldhaveanimportantimpactonthepriceorvalueofRONA’sshares.

UnauthorizeddisclosureofconfidentialinformationmayharmRONAdirectlybycausingtheCompanytoloseacompetitiveadvantage,damagingitsrelationswithitscustomers,harmingitsemployeesorputtingRONAindefaulttowardsthirdpartieswithwhomnon-disclosureagreementswereconcluded.

“Confidentialinformation”meansanyinformationorknowledgediscovered,acquiredorpossessedbytheCompanythatitdoesnotwishtodisclosetothegeneralpublic,includinganyconfidentialinformationthatmaybegiventoRONAbyathirdpartypursuanttoanondisclosureagreement.

Financialinformation,businessplans,informationaboutemployees,salesandmarketingdata,informationaboutcustomersandbusinesspartners,aswellastheCompany’slegalaffairsareallconsideredasbeingconfidentialinformation.

EmployeesofRONAwhoprepare,protect,useorbychancebecomeawareofconfidentialinformationmustprotectitsconfidentialityandmustnotdisclosesuchinformationtothirdparties,unlessitsdisclosureisexpresslyauthorizedorrequiredbylaw.

EveryemployeehasanobligationtoprotectconfidentialinformationsothatRONAcanremaincompetitive.AllemployeesshouldusesuchinformationefficientlytoachievetheCompany’sbusinessobjectivesandneverusetheinformationfortheirorother’spersonalgainorformotivesthatarenotbusinessrelated.

Did you know that buying and selling shares with “insider”

information is illegal?


Disclosure of InformationRONAappointsalimitednumberofspokespersonstocommunicatewiththefinancialcommunity,regulatoryauthoritiesandthemedia.TheauthorizedspokespersonsmayoccasionallyappointotherpersonswithintheCompanytoaccomplishthesetasks.

UnlesstheyhavebeenspecificallyappointedbymanagementorbytheCommunicationsandPublicAffairsDepartment,nootheremployeesshallbeauthorizedtorespondtorequests(evenifmadeanonymously)originatingfromthefinancialcommunity,themedia,securitiesregulatoryauthorities(includingstockexchanges)orcomingfromothersources.AnyrequestsforinformationofthiskindshouldbeforwardedimmediatelytotheCommunicationsandPublicAffairsDepartment.

Insider OffensesRONAisgenerallyboundbylawtopromptlydisclosetothepublicanymaterialinformationthatconcernsit,includinginformationthat,ifpubliclydisclosed,wouldprobablyinfluenceinvestors’decisionsorthemarketpriceofRONA’sshares.

Employeesmaysometimesbecomeawareofmaterialinformationthathasnotyetbeendisclosedtothepublic.Untiltheinformationhasbeenfullydisclosedtothepublic,anduntilareasonableperiodoftimehaselapsedallowingtheinformationtobecomewidelyknown,employeesmusttreatitinstrictconfidence.

Materialinformationisusuallydisclosedtothepublicbymeansofpressreleasesorbyafilingwithgovernmentorregulatoryauthorities.AllemployeesareresponsibleforreadingandcomplyingwithRONA’sDisclosurePolicy.

Undisclosedmaterialinformationmeansinformationthat,ifmadepublic,couldhaveaneffectonthepriceoftheCompany’ssecuritiesorwouldprobablybeconsideredmaterialbyinvestorsindecidingtopurchase,sellortradeinsuchsecurities.Forexample,investorsmayrelyonsuchinformationtobuy,exchangeorsellRONAsharesorsecuritiesofthirdpartiesthatdobusinesswithRONA.

Here are some examples of material information:

•annualorquarterlyfinancialstatements;

•newproductsandservices;

•businessplans;

•corporatereorganizationplans;

•importantorstrategicacquisitionprojects;

•salesfigures;

•importantchangesinthemanagement;and

•confidentialinformationprovidedbythirdparties.

.

Itisillegalforemployeesormembersoftheirimmediatefamiliestobuy,sellorother-wisetradeinsecuritiesbasedonsuchinformation.Moreover,itisillegaltocommunicatesuchinformationtootherpersonswhomightbuy,sellorotherwisetradeinsecurities.

Protection of Personal Information of Customers and Business PartnersTheverynatureofourorganizationmeansthatRONAmustgatherpersonalinformationforbusinessandcustomerrelationspurposes.

Topreventanyabuseandtoensurecompliancewithlawsandregulations,theCompanyhasputintoplaceapolicyregardingprivacyandtheprotectionofpersonalinformationthatcomplieswiththeapplicablelaws.RONA’sPrivacyPolicyisavailableonRONA.ZONE.ca.Thispolicygovernsthecollection,possession,useandcommunicationofpersonalinformation.

The collection of personal information may be used, in particular, to:

•identifycustomersandbusinesspartnersinordertoestablishandmaintainbusiness relationswiththem(includingforpurposesofprocessingcreditapplications);

•providecustomerswithcontinuousservice,includingpurchasing,billinganddelivery proceduresaswellastoprovidethemwithpersonalizedservicewhentheyvisit, calloremailus;

•improvetheproductsandservicesthatweoffer;

•providecustomerswithinformationonotherRONAproductsandservices thatmaybeofinteresttothem;and

•protectcustomersofRONAfrommistakesandfraud.

RONAmayalsousepersonalinformationtogatherstatisticsforitsbusiness.Thesestatisticsdonotcontainanyinformationthatcouldallowdirectidentificationofindividuals,whethertheyarecustomers,businesspartnersoremployees.

AllthepersonalinformationthattheCompanyhasonitsbusinesspartnersandcustomersisconfidentialandmaynotbedisclosedoruseddirectlyorindirectlyexceptforthepurposesauthorizedbytheCompany.

Anyemployeewho,inthecourseoftheirdutiesmusthandlepersonalinformationregardingcustomersandbusinesspartners,mustexercisetheutmostvigilancetoprotecttheconfidentialityofthisinformationandnottodisclosesametoanythirdparty,allinaccordancewithRONA’sPrivacyPolicy.

Protection of Employees’ Personal Information TheCompanyprotectsthepersonalinformationofitsemployeesandonlygathersinformationthatisrequiredforitsbusiness.

“Personalinformation”meansanyinformationwhichrelatestoaphysicalpersonandallowsthatpersontobeidentifiedwithinthemeaningofapplicableCanadianandprovincialprivacylaws.Foremployees,personalinformationcanincludeinformationintheirpersonalrecordandanyotherinformationgatheredandusedtoprovideservicesorsupport,suchasinformationrelatingtocompensationorbenefits.

Personalinformationmustbeprotectedbysecuritystandardsinaccordancewiththesen-sitivityoftheinformationandmaybeusedonlyforreasonablepurposes.Allemployees—managementandnon-management—whoholdpersonalinformationonotheremployeesmusttreatthatinformationinaccordancewiththeprinciplesofprotectionofprivacy.

Inadditiontotakingnormalprecautions(e.g.,lockingdeskdrawersandoffices),employeesmustavoiddiscussingpersonalinformationwithotheremployeesinpublicplaces.

RONAmaynotguaranteetheprotectionofcommunicationsusingtheCompany’sequipment(e.g.,email,Internetorintranetactivities,voicemail,computerfilesordisks)andintheworkplace(e.g.,officesandfilingcabinets).



RONA reserves the right to monitor or search any such property at any time if it has a reasonable motive to do so, such as:

•toevaluateandmeasurequalityofservice;

•toensurethesecurityandprotectionofotheremployeesandtheCompany;and

•ifithasreasontosuspectanemployeeoffraud,theft,anundisclosedconflict ofinterestoranotheroffenselikelytoharmanotheremployee,theCompanyorlikely totarnishitsreputation.

Security of Computer Systems and NetworksToprotecttheintegrity,confidentialityandavailabilityoftheinformationcontainedinitsvariouscomputersystemsandothertechnologicalequipment,RONAhasputintoplaceanInformationSecurityPolicy.ThispolicyisavailableonZONE.RONA.caandallemployeesarerequiredtoreadandcomplywiththepolicy.

In addition to contributing to information security, all employees must comply with the following standards:

•accesstocomputersystemsisgrantedonlytoauthorisedusers;

•usersareresponsiblefortheiraccesstothecomputersystemsandtheiruseofsuch systems.Inaddition,allaccesscodesandpasswordsmustremainconfidential;

•theuseofcomputers(whetherportableordesktop)mustbesuchastoprotectthe confidentialityoftheinformationstoredthereon;

•theuseoftheCompany’scomputersystemsornetworksforpersonalornon-work relatedpurposesisstrictlyprohibitedunlesstheemployeeobtainsthepermission ofhisorherimmediatesupervisor,allsubjecttotheguidelinesonthepersonaluseof Internetaccessdescribedhereafter;and

•eachemployeeisboundtoreportanybreachofcomputersecurityguidelines, methodsorstandards.

Books and RecordsTheCompany’sbooksandrecordscontainvitaldataonallitsactivities.ThesearedocumentsthatRONA’sexecutivesandseniormanagers,aswellasexternalfinancialanalysts,shareholders,investors,regulatorybodiesandothers,relyonwhenmakingimportantdecisions.

Employeesshouldensurethatalldocuments,reportsandfilesforwhichtheyareresponsibleareaccurateandcomplete.Theyshouldalsoensurethatalltransactionsaredulyauthorized.

In preparing and keeping the books and records of the Company, employees should:

•complytorecognizedaccountingstandardsandpracticesandtoapplicablerules, regulationsandcontrols;

•ensurethatallentriesarerecordedpromptlyandaccuratelyintheappropriate accountsandareproperlydocumented;

•recordallfunds,assetsandtransactions.Noundisclosedorunaccountedforfunds orassetsshouldbeestablished;

•keepbooksandrecordsthatreflectaccurately,fairlyandinsufficientdetail transactions,acquisitions,dispositionsofassetsandothersimilaractivities oftheCompany;

•onlysigndocumentswhoseaccuracyisnotindoubt;and

•limitaccesstosensitiveorconfidentialinformation(e.g.,financialinformation andinformationonbusinesspartners)inordertoensurethattheinformationisnot deliberatelyoraccidentallydisclosed,altered,misusedordestroyed.


Contract NegotiationsContractsandsimilararrangementsconstituteoneoftheCompany’sbusinessrisks.TheymayalsoallowRONAtoreduceitsrisk.Ifanemployee’sdutiesincludecontractnegotiationorexecutionthereof,theyshouldtakestepstoprotectRONA’sinterestsadequatelybyhavingsuchcontractsandarrangementsreviewedbytheLegalDepartmentincompliancewiththetermsofRONA’sExpensesAuthorizationandCommitmentPolicy.

InallcaseswhereanemployeeisinapositiontobindRONAcontractually,theymustrefertoandcomplywiththeExpensesAuthorizationandCommitmentPolicyandthePurchaseofGoodsandServicesotherthanthoseforResalePolicy.ThesepoliciesareavailableonZONE.RONA.ca.

Personal Use of Internet Access Provided by the CompanyAccesstoInternetisprovidedprimarilyfortheconductoftheCompany’sbusiness.Employeesmustrefrainfromvisitingsitesorconductingexchangesthatareinappropriate,racist,pornographic,violentorotherwisepromotingantisocialorillegalbehaviour.

Internetaccessmustnotbeusedforpersonalgainorforanemployee’sbusinessdealingsontheirownaccount.Furthermore,Internetshouldnotbeusedforentertainment,criminalorlitigiousactivities,polemicalordefamatorycommunications.EveryemployeeisresponsibleforalloftheirInternetoremailuse.

AccessingtheInternetforpersonaluseispermittedbutmustremainoccasionalandmustneverhinderthecompletionofemployees’tasks.

Furthermore,informationsystemsandtheiruseremainthepropertyandtheresponsibilityofRONA,andtheCompanymayverifyhowitssystemsarebeingused.

Social NetworkingWheneveremployeesareengagedinsocialnetworking(e.g.,viaFacebook,MSN,LinkedIn,etc.)orchatting,theymustrefrainfromtakingapositiononbehalfofRONA.TheymustalsoexerciserestraintanddiscretionwhenmakingcommentstoavoidharmingRONA’sreputation.Amongotherthings,employeesmustmeettheirobligationsintermsofprotectingtheconfidentialityoftheinformationavailabletothemthroughtheirpositionsatRONA.

Moreover,RONAemailaddresses(endingby“@rona.ca”)shouldneverbeusedforidentificationpurposesandaccessto“personal”socialnetworks.

13Code of Ethical ConductDEALING WITH CUSTOMERS

AND COMPETITORSIn order to enjoy a strong and lasting competi-tive advantage, it is every employee’s duty to help develop and protect RONA’s reputation for quality, service excellence and integrity. Thebestmeansofdoingthat,andofconsolidatingthisposition,istocompetehardbutfairlywhilerespectinglegalandethicalobligationstotheletter.Competingfairlymeansrespectingbusinesspartners,customers,competitorsandrepresentatives.

Sales of Products and ServicesRONA’sbusinesspartnersandcustomershavetherighttoexpectthatRONAwillofferthemqualityproductsandservices,andthatRONAwillpromoteinanhonestwaytheadvantagesitoffersoverthecompetition.

To keep this trust:

•Employeesshouldonlysellproductsandservicesthatmeettheneedsanddemands ofRONA’scustomersandbusinesspartners;

•Employeesshouldnotmakeanymisrepresentationsorfalsepromiseswhen promotingtheproductsandservicesofferedbyRONA;and

•EmployeesshouldonlyrefercontractorsthatarepartofRONA’sInstallProgram.

Respect for the CompetitionRONAencouragesfreeandopencompetition.TheCompanytreatsitscompetitorswiththerespecttheydeserve.Thus,RONAremainsfaithfultotheconceptofhealthycompetition,whichmotivatestheCompanytogiveofitsbest.

EveryRONAemployeehasthedutytoportraythecompetitorsoftheCompanywithaccuracy,fairnessandimpartiality.TodootherwisewouldexposeRONAtoaccusationsofanti-competitivebehaviourandeventolegalproceedings.

Respecting the competition means:

•notdescribingacompetitortothepublicortoacustomerinaccurately,ina misleading,offensiveorunfairmanner;and

•notshowinganydisrespecttoacustomerwhochoosesacompetitor’sproducts orservices.

F.


Competition LawsCompliance with Laws

RONA’spolicyistorespectallapplicablecompetitionlaws.Anycontraventiontotheselawsmaygiverisetoseriouscriminaloffensesandcivilsanctions,includingseverefinesandprisonsentencesfortheindividuals.

In order to comply with applicable laws, it is forbidden, in particular, to enter into any agreement:

•relatingtopricefixingorpricemaintenance;

•relatingtotheallocationofsales,territories,customersandmarkets;

•torestricttheproductionorthesupplyofaproduct;or

•relatingtobid-rigging.

Obtaining Information on Competitors

ItislegitimateforRONAtogathercommercialinformationaboutthemarketsinwhichitoperates.Thatincludesinformationaboutitscompetitors,theirproducts,services,prices,andmarketingcampaigns.

However,thisinformationmayonlybeobtainedbylegalandethicalmeans.Itisforbiddenforemployeestoobtaininformationdirectlyfromacompetitorortoexchangeinformationwithacompetitorthroughanintermediary.Actingotherwisewouldruncountertoourcommitmenttointegrityandrespect,andcouldalsobeillegal.

Foranyquestionrelatingwiththeapplicationofcompetitionlawsandmoreparticularlytomakesureofthelegalityofyouractions,weinviteyoutoconsulttheLegalAffairsDepartmentofRONA.

PROTECTING THE COMPANY’S ASSETSAll employees are bound to protect the Company’s assets. This responsibility is essential to maintain the confidence of shareholders and other stakeholders. MisuseoftheCompany’sassetsoraccountingforthemincorrectlycouldseriouslyharmtheCompany’sreputationforintegrity,defeatitsbusinessstrategiesanddecisions,andweakeninvestorconfidence.Itcouldalsobeconsideredillegalandsubjecttocriminalprosecution.

EveryemployeeofRONAhasanobligationtoprotecttheCompany’sassetsbothphysical(e.g.,persons,inventory,materials,buildings,facilities,information,revenues)andtechnological(e.g.,communicationsandinformationsystems)thatareentrustedtotheircare.Accesstosuchassetsandtheirusemustbeauthorized,properlymonitoredandrelatedtowork.

TheuseoftheCompany’sassetsforpersonalmeansorgainisstrictlyprohibited.Inaddition,eachemployeemusttakeappropriatestepstopreventlossesresultingfromintentionalactsbythirdparties,bothinsideandoutsidetheCompany,orthatcouldcausetobodilyinjuryorpropertydamageorthetheft,lossormisuseoforunauthorizedaccesstotheCompany’sphysicalortechnologicalassetsandintellectualproperty(includingdata).

ItisthedutyofeveryemployeetoreportimmediatelytotheirsupervisoranyactthatcouldbeanactualorpresumedbreachoftheguidelinescontainedinthisCoderegardingtheprotectionoftheCompany’sassets.

G.

15Code of Ethical ConductA HEALTHY, RESPECTFUL

WORK ENVIRONMENTThe Company commits itself to foster a workplace that:

• recognizesthedignityandpersonalvalueofeveryemployee;

• allowseveryemployeetoworkwithoutfearofintimidation,discrimination,

harassmentorviolence;

• promotesopenandhonestrelationships;

• allowseveryemployeetoworkinasafeenvironment;

• favoursawork-lifebalance;and

• promoteshealthylifestylesaswellasgroupandindividualwell-being.

Workplace DiversityTheCompanydefinesdiversityasrespectforeveryone.Culture,nationalityoforigin,sex,age,religion,adisability,sexualorientation,educationandexperiencearejustsomeofthewaysinwhichdiversityismeasured.

Byvaluingdifferences,everyonecancreateawelcomingworkplacebasedonmeritandrespectinwhichallemployeescanachievetheirfullpotential.TheCompanyalsoundertakestobetterreflectthecommunitiesinwhichitoperatesandthecustomersandbusinesspartnerswithwhomitdoesbusiness.

Employment EquityEmploymentequityisanimportantaspectoftheCompany’sdiversitystrategy.Diversitycomprisesanumberofdifferentfactorswhichmakeeachpersonunique.Employmentequitydoesnotmeanhiringunqualifiedpeople,butofferingequalopportunitiesofemploymenttoall.

Discrimination and HarassmentRONAdoesnottolerateanyformofillegaldiscriminationorharassmentofanypersonorgroupincludingitsemployees,businesspartners,customersandinvestors.Thisexpresslyincludesdiscriminationongroundsofrace,nationalorethnicorigin,colour,religion,age,sex,pregnancy,language,sexualorientation,maritalstatus,socialcondition,adisabilityortheuseofanymeanstopalliateadisability.

Harassment means any offensive, embarrassing, demeaning and often repeated behaviour that deprives a person of the dignity and respect to which they are entitled. It may take sev-eral forms such as:

• threats,intimidationorverbalabuse;

• inappropriateremarksorjokes,forexampleaboutrace,religion,disability,sex, sexualorientationorage;

• unwelcomephysicalcontact,suchastouching,patting,pinchingorhitting;

• photos,posters,emailsorscreensaversthataresexist,racistorotherwise offensive;and

• anyotheractthatcouldreasonablybeperceivedasoffensiveordemeaning.

H.


Sexualharassmentmeansanyoffensiveordemeaningbehaviourrelatingtoaperson’ssexaswellasanysexualbehaviourthatcreatesaworkclimatethatisintimidating,embarrassing,hostileoroffensive,orthatcouldreasonablybeinterpretedasmakingtheemploymentofapersonorhisorherchancesofemploymentorpromotionconditionaltosexualfavours.

Here are a few examples:

• questionsandconversationsaboutaperson’ssexuallife;

• remarksaboutaperson’ssexualattractivenessorunattractiveness;

• displayingposters,calendarsorscreensaversthatareofsexualnature;and

• writingnotes,lettersoremailswithasexualconnotation.

AnemployeewhobelievesthatheorsheisthevictimofharassmentordiscriminationshouldimmediatelycontacttheirsupervisororthePeopleandCultureDepartment.


Occupational Health and SafetyRONAiscommittedtoprovidingasafeandsecureworkenvironmentinanefforttoeliminatetherisksofillnessandinjury.

Occupationalhealthandsafetyisthereforearesponsibilitysharedbyeveryemployee,ateverylevel.

Every employee is responsible for their own health and safety. To this end, each employee should:

• followtheworkmethodsdictatedbytheCompanywhencarryingouttheirduties;

• complywithalltheCompany’shealthandsafetyguidelines,includingestablished emergencymeasures;

• observealloccupationalhealthandsafetylawsandregulations;

• wearrequiredprotectiveequipment;and

• holdallrequiredlicencesrequiredforanyvehicleusedtocompletethetasks assignedtotheemployee.

.

For its part, the Company undertakes to:

• provideaworkplacethatishealthyandsafeinordertoeliminatetheriskofillness andinjury;

• complywithorexceedlegalrequirementsregardinghealthandsafety;and

• provideappropriatesupervision,trainingandequipmentinthisarea.

Alcohol, Drugs and Other SubstancesTheCompanyisconcernedaboutthehealth,safetyandwellbeingofitsemployees,businesspartners,customersandthepublic.Forthisreason,theCompanytakesallreasonablestepstominimizetherisksassociatedwithitsactivitiesandtoensureahealthy,safeandproductiveworkenvironment.

TheseprinciplesapplytoallemployeesatalllocationswheretheCompanycarriesitsoperations,toalloperationsduringworkinghours.Eachemployeeshouldbehaveresponsiblyatbusiness,socialandrecreationalgatheringsinvolvingRONA.

Employeesmustbepreparedtoperformtheirdutiesatalltimes.RONAappliesazerotolerancepolicyregardingalcohol,drugsorillegaldrugsforallemployeeswhosedutiesrequiretheuseofmotorizedequipmentand/orwhosedutiesinvolveasecurityrisktothemselves,customers,thepublicorcoworkers.

Forclaritypurposes,itisthereforeunacceptableforthesegroupsofemployeestoperformtheirdutieswhileundertheinfluenceofalcohol,drugsorillegaldrugs.Allothergroupofemployeesmustnotbeimpairedbyanyofthesesubstances.

Theconsumption,sale,illegalpossession,manufacturingordistributionofalcoholorillegaldrugsintheworkplaceorduringworkinghoursisstrictlyforbidden.However,theconsumptionorsaleofalcoholispermittedatsocialeventsauthorizedbytheCompanyatconditionssetbythemanagementfortheholdingofsuchevents.

Furthermore,eachemployeeisresponsiblefordetermining,withtheassistanceoftheirphysicianorpharmacist,anypotentialsideeffectcausedbytheuseofprescriptionorover-the-counterdrugs.

Shouldtherebeanysideeffectsthatmayaffectanemployee’sperformanceatwork(e.g.,prescriptiondrugthatcausesdrowsiness)itistheemployee’sresponsibilitytonotifytheirimmediatesupervisor.TheCompanyreservestherighttoaskforadoctor’snotetovalidatetheemployee’sabilityorinabilitytoperformtheirtaskswhentakingmedication.


Judicial AffairsEmployeesinvolvedinalegalmatterorpoliceinvestigationshouldinformtheirsupervisorimmediatelyifthesituationislikelytoaffecttheirabilitytoattendworkortoperformalltheirdutiesfullyandproperly.

Workplace ViolenceEveryemployeeisentitledtoworkinaworkplacethatisfreefromviolenceandthreats.Therefore,theCompanyprohibitsallphysical,verbalorwrittenaggressionorviolencebyanemployeetowardsanotheremployee,ortowardsanyotherpersonwithwhomtheemployeehasdealingsinthecourseoftheirwork.

Everyemployeeisresponsibleforreportingtotheirsupervisoranyviolenceorthreatenedviolencetheywitness.

COMPLIANCE WITH LAWS, REGULATIONS AND INTERNAL POLICIESRONA must ensure compliance with the spirit and the letter of laws, rules and regulations and with generally accepted ethical standards. Employeesareresponsiblefortakingreasonablemeasurestoensuresuchcompliance.Similarly,everyemployeeisboundtocomplywiththepolicies,standardsandproceduresimplementedbyRONA.

I.

19Code of Ethical ConductBREACHES TO THE CODE

Any breach to the Code is considered a serious matter, whether or not such breach has been committed for personal convenience and whether or not it results in a loss or a gain for RONA or for others.AnybreachtothepresentCodewillgiverisetoaninvestigationand,ifappropriate,mayleadtodisciplinaryactionuptoandincludingdismissal.NoprovisionoftheCodeprohibitsRONAfromtakingdisciplinaryactionagainstanemployee,norlimitsRONA’spowersinthisregardwhetherornotthematterisdealtwithinthisCodeexplicitly.

Inaddition,anoffenseundertheCodemaygiverisetocivilorcriminalproceedingsagainsttheemployeewhocommittedtheoffense.

J.

Discuss any breaches to the Code with your superior.

20Code of Ethical Conduct REPORTING OF OFFENSES

This Code deals with fundamental principles adopted by RONA in matters of ethics as well as inherent responsibilities for the monitoring and reporting of breaches. AllemployeesofRONAarepersonallyobligedtoreportingoodfaithanyactivityappearingtobeinbreachtothisCodeorlawsandregulationsinforce.

IfanemployeebelievesthatapersonassociatedwithRONA(employees,businesspart-ners,consultants,intermediaries,etc.)hasbreachedaprovisionoftheCode,theemployeeshouldreportthefactingoodfaithtotheirsupervisoreitherbymail,phone,email,inpersonoranonymouslybycontactingClearViewConnectsby(RONA’sEthicsHotline)phoneat1.866.353.7662 orviatheirwebsite:www.clearviewconnects.com.RONAwillthentakethenecessarystepstoinvestigatethematter.

ClearViewConnects™isaserviceofClearViewStrategicPartnersInc.,anindependentcommunicationsconsultingcompanyprovidingconfidentialandanonymousfeedbackservicestoorganizations.Theirsecurereportingsystemsaredesignedtoprotecttheidentityofemployeesusingtheirservices.

Employeeswillnotbediscriminatedagainstnorpenalized,dismissed,relievedoftheirdutiesorsuspendedbecausetheyhavereportedingoodfaithanactivitythatcouldconstituteabreachtotherulescontainedinthisCode.

PleasereadRONA’sPolicyonComplaintsRegardingAccounting,InternalAccountingControlsorAuditingMattersonRONA.ZONE.CA

ADDITIONAL INFORMATIONTo obtain more information about the Code, please contact your immediate superior or the People and Culture Department. Ifyouhavequestionsaboutaparticularsituation,youshouldcontactyourimmediatesupervisororthePeopleandCultureDepartment.

K.

L.

ThepresentCodeofEthicalConductwasapprovedbytheBoardofDirectorsofRONAinc.onFebruary23,2011andreplacesandrevokesthepreviousCodeofConductofRONA.

0496149(2011)

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PEOPLE AND CULTURE Code of Ethics