cost plus management services, inc.cost plus ... - about us cpwm qa manual is now separated into two...

Dear Vendor: Our goal is to receive floor-ready merchandise from our vendors that meets our standards. It is to our mutual benefit that merchandise moves efficiently through our distribution centers, out to the stores, and is ready to be placed directly on the selling floor. The attached 2011 Vendor Guide is intended to assist you in achieving our goal by improving standards for on-time delivery, quality, transportation, and invoice submission and payment. Our standards are consistent with industry norms. This updated guide supersedes all previously issued standards including any verbal or buyer authorized exceptions. We reserve the right to amend the terms of this Vendor Guide from time to time. Authorized vendor representatives are required to review this guide and acknowledge their understanding (see the 2011 Vendor Guide Acknowledgment Form) within 14 days of receipt, which will indicate acceptance of all of its terms and conditions.

It is the vendor’s responsibility to ensure continued understanding of our standards. Amendments to this guide can be found by on our Vendor Relations website. You will find the link to the website, as well as your user ID and password at the bottom of every page of the attached 2011 Vendor Guide.

The attached Vendor Guide has recently been updated. All shaded sections highlight significant additions or

changes from the previous version. However, to ensure a complete understanding of all requirements, please read the entire guide carefully, paying particular attention to the following areas where policies have recently changed: � The CPWM QA Manual is now separated into two versions. There is a version dedicated solely to Furniture

Vendors titled: Quality Assurance Manual 2011 - Furniture Vendors Only. The other version covers all other product categories (excluding food and beverage) and is titled: Quality Assurance Manual 2011 - Excluding Furniture, Food, and Beverage Vendors. Both Manuals will be hereby referred to in this Guide as Quality Assurance Manuals. These manuals can be found on our Vendor Relations website.

� Beginning in December 2010, CPWM approved the addition of SGS as a third party testing partner for select

categories. See section 2 for complete details.

Thank you in advance for your cooperation, support, and partnership in building our profitable business together. Regards, Danielle McCurdy Director - Vendor Compliance & Internal Audit Cost Plus Management Services, Inc.

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VVVVendor Guideendor Guideendor Guideendor Guide

2020202011111111

NOTE: This guide was updated May 23, 2011

Shaded sections highlight significant additions or changes from the previous version.

2011 VENDOR GUIDE & QUALITY ASSURANCE MANUALS

ACKNOWLEDGMENT AND ACCEPTANCE FORM

Vendor Number __________ (Required field for existing vendors. New vendors leave blank)

Dear Cost Plus Management Services, Inc.

� I am responding as a VENDOR. I have received and reviewed the 2011 Cost Plus Management

Services, Inc. Vendor Guide and Quality Assurance Manuals, and agree to all of its provisions. I understand that the 2011 Vendor Guide and QA Manuals, as amended from time to time, applies to every purchase of merchandise from or on behalf of vendors of merchandise selling merchandise to Cost Plus, Inc. and its affiliates.

_______________________________________________________

Vendor Name (Print)

_______________________________________________________

Signed by and Title (Print) –must be individual authorized to sign on behalf of vendor

_______________________________________________________

Signature and Title – must be individual authorized to sign on behalf of vendor

__________________________

Date

All vendors must acknowledge their receipt of the Vendor Guide and Quality Assurance Manuals (using one of the following options). NOTE: email is the preferred method of acknowledgment, therefore all vendors should

submit via email (if possible).

Via Mail Via Fax Via email (preferred method)

Cost Plus Management Services, Inc. PO Box 23350 Oakland, CA 94623-2335 U.S.A. Attn: Vendor Guide

(510)-893-3681 Attn: Vendor Guide

[email protected]

NOTE: If you are responding by email (which is not mandatory but strongly encouraged), please include your vendor name and number, name, title, and the following statement: I am responding as a VENDOR. I have received and reviewed the 2011

Cost Plus Management Services, Inc. Vendor

Guide and Quality Assurance Manuals and agree

to all of its provisions. I understand that the 2011

Vendor Guide and Quality Assurance Manuals, as

amended from time to time, applies to every

purchase of merchandise from or on behalf of

vendors of merchandise selling merchandise to Cost

Plus, Inc. and its affiliates.

All vendors must acknowledge their understanding, and agreement of the 2011 Vendor Guide and Quality Assurance Manuals within 14 days of receipt (using one of the options described above). Expense-

Offset Fees will be assessed to those vendors that do not adhere to this policy.

TABLE OF CONTENTS

1. PURCHASE ORDER (P.O.) ........................................................................................ SECTION 1

PURCHASE ORDER (P.O.) NUMBER FORMAT ............................................................................................... 1-1 DIRECT TO STORE / DROP SHIP ORDERS (DSO) ........................................................................................... 1-1 ON-TIME SHIPPING ......................................................................................................................................... 1-1 FOB/FREIGHT TERMS POLICY ..................................................................................................................... 1-2 PRODUCT QUANTITY VARIANCE .................................................................................................................... 1-2 PURCHASE ORDER DELIVERY / CONFIRMATION .......................................................................................... 1-2

2. MERCHANDISE REQUIREMENTS ........................................................................ SECTION 2

SAMPLE POLICY - NON FOOD/BEVERAGE VENDORS ..................................................................................... 2-1 SKU FOLDER PROCESS (FURNITURE VENDORS ONLY).................................................................................. 2-4 PACKAGING REQUIREMENTS......................................................................................................................... 2-4 GENERAL PACKING REQUIREMENTS............................................................................................................ 2-5 CARTON MARKING INSTRUCTIONS............................................................................................................. 2-12 PRICE TICKETING ........................................................................................................................................ 2-16 QUALITY ASSURANCE.................................................................................................................................. 2-19 FOOD & BEVERAGE ...................................................................................................................................... 2-31

3. IMPORT LOGISTICS ................................................................................................. SECTION 3

CONTAINER LOADING .................................................................................................................................... 3-1 FREIGHT CONSOLIDATION ............................................................................................................................ 3-1 DOCUMENTATION .......................................................................................................................................... 3-2 SECURITY STANDARDS FOR VENDORS............................................................................................. 3-7 IMPORT ROUTING GUIDE...................................................................................................................... 3-7

4. DOMESTIC LOGISTICS............................................................................................ SECTION 4

TRAILER LOADING ........................................................................................................................................ 4-1 PALLET POLICY ............................................................................................................................................. 4-1 DOCUMENTATION .......................................................................................................................................... 4-1 FREIGHT COLLECT SHIPMENTS .................................................................................................................... 4-2 PRE-PAID SHIPPING....................................................................................................................................... 4-3 SECURITY STANDARDS................................................................................................................................... 4-3

5. ACCOUNTS PAYABLE .............................................................................................. SECTION 5

IMPORT DOCUMENTATION ............................................................................................................................ 5-1 DOMESTIC INVOICES ..................................................................................................................................... 5-2 VENDOR PAYMENT......................................................................................................................................... 5-2 PAYMENT DEDUCTIONS/CLAIMS .................................................................................................................. 5-3 INSURANCE REQUIRMENTS ............................................................................................................................ 5-3

6. EXPENSE OFFSET POLICY ..................................................................................... SECTION 6

7. APPENDIX.................................................................................................................... SECTION 7

PURCHASE ORDER TERMS AND CONDITIONS................................................................................................. 7-1 VENDOR CODE OF CONDUCT AND ETHICS ..................................................................................................... 7-9 SOCIAL COMPLIANCE POLICY .................................................................................................................... 7-10 CONTACT LIST .......................................................................................................................................... 7-12

* * *

1. Purchase Order (P.O.)

Cost Plus Management Services, Inc. 1-1 For updates to this guide, go to Vendor Guide 2011 - CONFIDENTIAL www.worldmarketcorp.com/vendor-relations/ Date: May 23, 2011 User ID: cp03 Password: cp03

Questions? Contact [email protected]

1. PURCHASE ORDER (P.O.)

PURCHASE ORDER (P.O.) NUMBER FORMAT

� Orders starting with a “2” (e.g., 200123456) are for the Stockton, CA, Distribution Center (SDC#901). � Orders starting with a “4” (e.g., 400123456) are for the Windsor, VA, Distribution Center (VDC#909).

DIRECT TO STORE / DROP SHIP ORDERS (DSO)

We may issue some DSO orders. Each P.O. will indicate a specific ship-to location. Orders starting with a “990” and all 6 digit orders are the only formats used for DSO’s. Vendors should only ship retail merchandise directly to the stores when directed to do so by the P.O. ship-to address.

ON-TIME SHIPPING

The ship date on the P.O. is the key to our on-time shipping policy. Our Ship Window is the ship date stated on the P.O. minus 5 business days for import shipments and 3 business days for domestic shipments. Business days are defined as Monday through Friday. Therefore, a “late shipment” is defined as having shipped the day after the ship date on the P.O. An “early shipment” is defined as having shipped 6 business days for import shipments and 4 business days for domestic shipments before the ship date on the P.O. Vendors will be issued an Expense Offset Fee for non-compliance (see section 6). Based on terms of sale and type of shipment, on time shipping is defined as:

Import Shipments

� FOB port - less than container load (LCL): Vendor must deliver merchandise to the consolidator up to 5 business days before the ship date stated on the P.O. and no later than the ship date. For example, if the ship date stated on the P.O. is a Friday, the vendor must deliver cargo to the consolidator between the previous Friday (5 business days, 7 calendar days) and the Friday ship date noted on the P.O.

� FOB port - full container cargo (FCL): Vendor must deliver merchandise to the port up to 5 business days before the ship date stated on the P.O. and no later than the ship date. For example, if the ship date stated on the P.O. is on a Friday, the vendor must deliver cargo to the port between the previous Friday (5 business days, 7 calendar days) and the Friday ship date noted on the P.O.

� Ex-factory: Vendor must have merchandise arranged and available for pick up at the factory up to 5 business days before the ship date stated on the P.O. and no later than the ship date. For example, if the ship date stated on the P.O. is on a Friday, the vendor must have cargo ready and available for pick up at the factory between the previous Friday (5 business days, 7 calendar days) and the Friday ship date noted on the P.O.

Domestic Shipments

� FOB Origin (collect): Vendor must have merchandise arranged and available for pick up by one of our carriers up to 3 business days before the ship date stated on the P.O. and no later than the ship date. For example, if the ship date stated on the P.O. is on a Friday, the vendor must have goods available for pick up between the previous Tuesday (3 business days before) and the Friday ship date noted on the P.O.

� FOB Delivered (Prepaid): Vendor must deliver merchandise up to 3 business days before the receipt date stated on the P.O. and no later than the receipt date. For example, if the receipt date stated on the P.O. is on a Friday, the vendor must deliver the merchandise between the previous Tuesday (3 business days before) and the Friday ship date noted on the P.O.

NOTE: The Ship Window described above applies to all non-DSO vendors (including those vendors that are paid using a letter of credit (LC)). LC vendors must ship in accordance with this policy, but will be paid in accordance with the LC. This policy supersedes all previously issued agreements including any verbal or buyer authorized exceptions. DSO orders must be received at the store on the receipt date stated on the P.O. Orders received after the receipt date will be considered late. Vendors will be issued an Expense Offset Fee for non-compliance (see section 6).

1. Purchase Order (P.O.)



FOB/FREIGHT TERMS POLICY

The FOB point on the P.O. is the key to our Freight Terms Policy. If the FOB on the P.O. is inaccurate, vendors should contact their buyer to make the correction. Vendors should not accept a P.O. until the correct FOB point is displayed on the P.O. Vendors will be issued an Expense Offset Fee for non-compliance (see section 6).

PRODUCT QUANTITY VARIANCE

All P.O. quantities must be shipped as ordered. We may allow a maximum variance of 5% per SKU (over or under). If the shipment variance is greater than 5% (over or under), the following will occur. Vendors will be issued an Expense Offset Fee for non-compliance (see section 6).

� If the ship quantity is under the P.O. quantity, the remaining units on the P.O. will either be cancelled or will be governed by our On-time Shipping Policy - see section 6 and previous page.

� If the ship quantity is over the P.O. quantity, we reserve the right to:

• return the excess units at the vendor’s expense (RTV) and/or destroy the product

• cancel units on future P.O. equal to the amount of variance on current shipment

• accept the excess units at a 20% discount NOTE: Any units shipped over the ordered quantity are subject to return.

PURCHASE ORDER DELIVERY / CONFIRMATION

Only GT Nexus generated P.O.'s are considered valid (DSO/EDI orders may be exempt). To obtain a copy of the GT Nexus User Guide, go to our Vendor Relations website (directions located at the bottom of this page). All new, changed, and cancelled P.O.'s must be accepted using this system. Vendors that ship product against a P.O. without accepting the P.O. via GT Nexus will not be paid. Vendors should only accept a P.O. when all information (such as ship date, quantity, FOB point, cost, etc.) is 100% accurate. Vendors that work with Agents/Brokers and require those Agents/Brokers to accept P.O.'s on vendor's behalf, shall provide written authority to them for such contract authorization.

PURCHASE ORDER TERMS AND CONDITIONS

Our Purchase Order Terms and Conditions can be found in section 7 and within the PDF version of our GT Nexus

(PO delivery) purchase order.

REJECT / RETURN POLICY

Merchandise that is received damaged, not as ordered, or is in violation of any terms, conditions, purchase order, warranties, or requirements described in this Vendor Guide may be refused, returned to vendor (RTV), or received at our discretion. Physical receipt of your shipment shall not constitute acceptance of any goods that do not conform to specifications, P.O. terms and conditions, vendor guidelines and all applicable U.S. regulations. All costs associated with returns are the responsibility of the vendor (see section 6). Vendors should work directly with their Buyer on all rejects/returns (including arranging for export documentation if applicable). Vendors that do not arrange for the return of non conforming merchandise within 14 calendar days of receiving an R.T.V. will be charged back according to our Expense Offset Fee policy(see section 6). R.T.V.

product will be destroyed (at CPWM's discretion) if product is not picked up from our DC within 14 calendar

days. Vendors are responsible for all costs associated with returns and/or destruction.

2. Merchandise Requirements



2. MERCHANDISE REQUIREMENTS

SAMPLE POLICY - NON FOOD/BEVERAGE VENDORS

We do not pay for samples or pay for the shipment costs of samples. All sample shipments must be approved by your Buyer prior to sample shipment. All costs associated with unapproved or incorrect sample shipments will be charged back to the vendor. To obtain shipment approval, details of the sample (digital pictures, corrections made, comments, etc.) must be submitted to your Buyer. Once samples have been sent, sample shipment information (such as tracking number, ETA, product description) should be submitted to your Buyer for tracking purposes.

Sample Carton Markings/Documentation

All sample shipments must have the following information on all master and inner sample cartons. If a master carton is used (that contains multiple samples, addressed to multiple Buyers) each Buyer name, department, and product description must appear on the master carton marking. All sorting costs associated with carton marking

errors will be charged back to the vendor. Corrugate cartons should be used for all sample shipments unless the product itself cannot fit into a carton (e.g., rugs). � The word “SAMPLE” � Buyer name � Department name or number � Product description

All international samples must be sent via international courier or via one of CPWM's nominated freight forwarders: � If shipping via international courier, vendor must provide the name of the international courier and it's tracking

number to the applicable CPWM Buyer. � If shipping via air or ocean freight, vendor must book the shipment in the following way.

• Vendor must use a Cost Plus-designated consolidator / freight forwarder.

• Vendor must book samples through to San Francisco, California, USA if sending via air freight.

• Vendor must book samples through to Oakland, California, USA, if sending via ocean freight

• For assistance, please contact the Cost Plus Imports group at [email protected].

NOTE: All documentation (including air way bills) submitted with sample merchandise must also include the vendor name, buyer name and department, and must be marked as “SAMPLE”. Samples received without the above information will either be disposed of, or will be sorted at the vendors' expense. See section 3 for invoice requirements related to Customs clearance and other government agencies.

Merchandise Sample Hang Tag/ Label

Using a hang tag or label, the following information must be attached to all samples. Samples received without this information may be disposed of, or vendors may be charged-back for all costs associated with sorting and identifying the samples. Please note that we have provided revised examples for your reference below. These examples are for illustration purposes only and do not need to be replicated. In other words, vendors/agents may use their own hang tag as long as it contains the following information: � Agent Name/Vendor Name (factory name if different than vendor) � Date � Buyer/Dept. information � Vendor Style/Item # or CPWM SKU # (if available) � Item Description (e.g. dimensions, material make-up, color, etc.) � Season/Program (if applicable) � P.O. # (if known) � Cost (US$) – include unit of measure � Country of Origin � Type of sample (such as offer, approval, production, etc.) � Seasonal Vendors (department 24 only) must include inner/master pack quantity, MOQ, case dimensions (see

example below)




� Comments section (include any details for your Buyer to specifically review)




Sample Quantities & Approval Procedure The required quantities of all samples described below may vary from one piece to several. Each Buyer has

different requirements, and will communicate these requirements directly to the vendor (or Agent where

applicable). Only a Buyer approved sample (in writing) will allow the start of production. Below are examples of samples that may be required. Please contact your Buyer before sending any samples.

� Offer Sample: Typically initiated by vendor/agent, and should be sent directly to your Buyer for review (before

an order can be placed). � Development Sample: Typically initiated by Buyer, and should be sent directly to your Buyer for review

(before an order can be placed). � Approval (pre-production) Sample: Vendors may be required to submit one or more Approval Samples to

ensure that design, construction, and workmanship details are to the agreed upon specifications. If the Approval Sample does not conform to the required standard, your Buyer (and/or Agent where applicable), will assist you in improving samples to re-send for approval. This will be repeated until your Buyer is satisfied with the quality. The Approval Sample and any agreed amendments must be retained by the vendor as a basis of specification and quality assessment. It is the vendors’ responsibility to get a final approval statement in writing from the Buyer before proceeding with production. Any shipped production that does not meet our approved sample will be subject to rejection.

� Top of Production (TOP) Sample: One or more TOP Samples may be required by your Buyer to ensure that any corrections requested during the Approval Sample process (see above) have been addressed. Contact your Buyer before sending any TOP Samples. The TOP sample is the finished product including packaging. It represents the product shipped. It is the first sample off of the production line which needs to be controlled against the approval sample.

� Floor Set / Advertising Sample: One or more samples may be required for floor set / advertising purposes.

Sample Shipment

After receiving approval from your Buyer, samples should be sent to one of the following addresses. Please note that unless you are shipping food or beverage samples to us, you must send your samples to the 201 Second Street address listed below. Vendors will be issued an Expense Offset Fee for non-compliance (see section 6). Once samples have been sent, sample shipment information (such as tracking number, ETA, product description) should be submitted to your Buyer for tracking purposes.

All samples excluding food and beverage Food & beverage samples

Cost Plus Mgt. Services, Inc. - Sample House Cost Plus Mgt. Services, Inc. - Headquarters

201 Second Street 200 Fourth Street

Oakland, CA 94607 Oakland, CA 94607 510-893-7300 x3470 510-893-7300 x3012

NOTE: All samples sent to us must have individual tracking numbers and must include assembly instructions (if applicable). Also, be sure to also include the following on the sample carton (and on all associated documentation). See previous page for more details. � The word "SAMPLE" � Name of Buyer/Assistant Buyer � Department name or number � Product Description

REMINDER: Any questions regarding our Sample Policy should be directed to your CPWM Buyer. This sample policy applies to non food & beverage vendors only.

The Food & Beverage Sample Policy can be found at the end of section 2.




SKU FOLDER PROCESS (FURNITURE VENDORS ONLY)

We receive many different pieces of information, in many different formats, for the hundreds of furniture SKU's we buy. It has become increasingly important for us to not only receive SKU information in one consistent format, but to also receive the same types of information from all vendors on all products. The new “SKU Folder” process (furniture vendors only) will allow us to do this by having item level information in a consistent format, while ensuring all the same questions are being answered on similar products. The “SKU Folders” are assembled at the end of the product development process. They include all of the FINAL information pertaining to a SKU (see below for details). The folder itself is assembled in our offices, but the internal information will be supplied by our vendors. To make the SKU Folders a successful tool for our teams to use, we will require our furniture vendors to supply us with the following seven key documents. Contact your CPWM Furniture Buyer for the actual forms.

� Spec Sheet: Final detailed product specifications supplied by vendor after final product approval. Due 2 weeks

after approval of sample.

� Packaging Sheet: Final detailed packaging specification supplied by vendor after BV approval. Due 2 weeks after approval from BV.

� Photograph Sheet: Photos of final approved product supplied by vendor. Due 2 weeks after approval of sample.

� Carton Labeling, Item Labeling & Inclusions: Copies of any hang tags, story cards, carton labeling, carton graphic print layout(s) and/or assembly instructions included with Product. Due 90-120 days prior to shipment.

� Swatches & Shade Bands: Three swatches of approved wood finish and/or fabric. Swatches due within 30 days of approval of samples. Shade bands due 90- 120 days prior to shipment

� BV Tests: Supplied by Bureau Veritas and/or vendors. Due 60 days prior to shipment. � Warranties: Required on all upholstery SKU's. Due 2 weeks after approval of sample. � Load Plan: Approved load plan due one week before shipment. � Technical Drawing: 3 view orthographic projection with dimensions. In DWG and TIF file format. Due 2

weeks after approval of final sample.

For all new Furniture SKU's, vendors must submit all SKU folder information to the CPWM Buyer within 3 months following the order placement/PO approval date. Vendors will be issued an Expense Offset Fee for non-compliance (see section 6). Expense Offset Fees will be assessed every 90 days; therefore re-occurring charges will be issued if applicable.

PACKAGING REQUIREMENTS

Overview

In order to ensure our merchandise moves through the DC, out to the stores, and is ready to be displayed and sold directly on the selling floor, merchandise must be shipped to our Distribution Centers (DC) in conveyable

cartons. This requirement includes master packs and inner packs. Conveyable cartons are those that can be placed on to our automated conveyer belt (see pictures on next page) which must travel through tunnels and turn on tight corners. Larger cartons (non-conveyable) will get stuck and disrupt the flow of material which must be picked manually. This manual picking process negatively affects our DC’s ability to deliver products to stores significantly and must be avoided whenever possible.




Reference the matrix chart below for details on conveyable carton limits. If you are not currently shipping merchandise in conveyable cartons, you must contact [email protected] to discuss a transition plan to meet our conveyable carton requirements. Failing to do so may result in Expense Offset Fees (see section 6). When contacting [email protected], it is critical that you include appropriate details including vendor name, current dimensions/gross weight of carton, ship pack/master pack quantities, SKU #, product description, detailed photos of your current packaging and the reason(s) for shipping in non-conveyable cartons. NOTE: If the physical dimensions of the product exceed the conveyable carton limits, then an automatic

exception is granted. In this case, there is no need to confirm the exemption with CPWM. We do not want to damage the product to make the carton conveyable. For example, if you ship a 6 ft umbrella, the physical dimensions of this product will exceed the conveyable carton dimensions limit. Therefore, it would be an automatic exception. We are only concerned about cases where vendors pack too many products inside a carton that would otherwise be conveyable if a lower inner or master pack qty can be adjusted or reduced. Please email your Buyer or Planner if you have further questions.

Conveyable Carton Size Requirements

Dimensions and Weight * Minimum * Maximum *

Largest Dimension 6” (15.24 cm) 34” (86.4 cm)

Second Largest Dimension 6” (15.24 cm) 28” (71 cm)

Third Largest Dimension 3” (7.62 cm) 28” (71 cm)

Gross Weight 2 lbs. (.91 kg) 50 lbs. (22.68 kg)

*Jewelry and Accessory Vendors, please see size requirements in Jewelry and Accessories packaging section.

2nd

Largest

Largest

Smallest

GENERAL PACKING REQUIREMENTS

� Pack Quantity: All master and inner pack quantities must be shipped as ordered (as stated on the P.O.). � Weight: Neither master cartons nor inner cartons should exceed 50 lbs (22.68 kg). If the weight of one unit

exceeds 50 lbs, an automatic exception will be granted. � Protective Packaging: Master cartons containing multiple inner packs should not have filler or packaging

materials around the inner packs. All protective packaging materials and structures should be contained within the inner pack. This includes, foam peanuts, foam or corrugated build up corners, plastic or paper dunnage. Any questions regarding this should be directed to [email protected]. Master cartons should be sized to snugly contain all inner packs with no additional packaging in between cartons.

� No Mixed SKU's: Pack only one SKU per carton. Cartons with more than one SKU will be refused or repackaged at the vendors’ expense.

� Strapping/Banding on Cartons: Unless otherwise specified, do not apply banding/strapping on cartons. Steel banding is strictly prohibited. If you feel the carton can not survive without banding, consider upgrading the carton material to stronger burst strength and/or changing the carton style. Exemptions to this would be heavy outdoor items (over 22.68KG), and certain furniture items. Please contact [email protected] for further details or requests for an exemption.




� Carton Strength: Use the chart below to select appropriate carton material for your product:

Products Corrugated

Board Type

Minimum

Mullen Burst

Minimum

Edge Crush

Minimum Caliper

Soft Lines /Hardline (inner cartons)

Single-wall (B/C Flute)

150 lb/in2 (1034 kPa)

32 lb/in (5.6 kN/m)

0.255 in. (6.48 mm)

150 lb/in2 32 lb/in Hard Lines (master carton) gross weight < 40 lbs

Double-wall (B/C Flute)

(1034 kPa) (5.6 kN/m)

0.260 in. (6.60 mm)


200 lb/in2

(1379 kPa) 40 lb/in 7.0 kN/m

Hard Lines (master carton) gross weight > 40 lbs

0.260 in. (6.60 mm)

Single-wall 150 lb/in2 32 lb/in B: .115 in. (2.92 mm)

(B,C, & E-Flute) (1034 kPa) (5.6 kN/m) C: .148 in. (3.76 mm)

Conveyable and Retail Quantity Inner Cartons

E: .070 in. (1.78 mm)


175 lb/in2

(1207 kPa) 40 lb/in (7.0 kN/m)

0.260 in. (6.60 mm)

All Furniture cartons gross weight up to

50 lbs and Mirrors


200 lb/in2

(1379 kPa) 42 lb/in (7.3 kN/m)

0.260 in. (6.60 mm)

All Furniture cartons gross weight from 50 lbs to 100 lbs


250 lb/in2

(1724 kPa) 44 lb/in (7.7 kN/m)

0.260 in. (6.60 mm)

All Furniture gross weight from > 100 to 150 lbs

All Furniture gross weight > 150 lbs


275 lb/in2

(1896 kPa) 48 lb/in

(8.41 kN/m) 0.260 in. (6.60 mm)

� Plastic bags: Minimum thickness of plastic bag used is 1.5 mil (0.04 mm). Bags with high recycled (impure)

content or are dirty are not allowed. Plastic bags should not be used as master packs (excluding some items such as rugs). See rug packaging in this chapter for details. All plastic bags must have the appropriate suffocation warnings printed on them. Refer to our Quality Assurance Manuals for complete details. Contact [email protected] with questions.

� Carton Styles: Selecting the carton style most appropriate for your product. See below charts for details on few of the most common carton styles.

� Environmentally Friendly Packing Materials: We encourage the use of environmentally friendly packing materials whenever possible. Examples of material include, but are not limited to, build-up corrugated pads, molded paper pulps (similar to egg carton) and air pillow (sealed plastic bag filled with air).

� PVC (Polyvinyl Chloride) Reduction Initiative: CPWM, in the best interest of our consumers and the environment, discourages the use of PVC in our product packaging. This includes protective packaging material and retail/display packaging, such as clear lids, see-through windows or clear boxes. Alternative packaging material to PVC is PVA (Polyvinyl Alcohol), PET or HDPE, depending on the application. For any questions or assistance, please contact [email protected].

� Desiccant: Use Silica Gel desiccant packets to absorb any excess moisture and to prevent molding during transit/storage. The general rule for using Silica Gel is one 5-gram Silica Gel packet per 1 cubic foot volume of product. Silica Gel packets must be stored in a cool, dry and hermetically sealed (to minimize exposure to outside air) area to prevent moisture saturation prior to use. Use properly stored desiccant only in appropriate amounts per manufacturer’s instruction. All packets must be clearly printed “Throw Away - Do Not Eat”. Candidates that may use the silica gel desiccant packets include products such as natural fiber weaved products (e.g. bamboo, reed, water hyacinth, banana fiber, and wicker), leather products, rugs and thick wooden collectible items.




� Carton Styles: Below is a chart outlining commonly used corrugated carton styles.

Carton Style Acronym/Name and

Int’l Fiberboard Case Code Carton Style Uses

RSC (0201) Regular Slotted Container

This is a highly efficient design for many applications. There is very little manufacturing waste. The RSC can be used for most products and is the most common box style. **See RSC restrictions of use below this chart. Not to be used with flat items (e.g. mirrors)

FOL (0203) Full Overlap Slotted Container

This style is especially resistant to rough handling. Stacked on its bottom panel, the overlapping flaps provide added cushioning. Stacked on its side, the extra thickness provides stacking strength.

HSC (0200) Half Slotted Container

Same as Regular Slotted Container without one set of flaps. Used together with a Design Style Cover as bottom tray, the HSC would be slid off the top of the product allow easier access to the product. Used for smaller furniture items such as bedside tables and night stands where an RSC would create difficulty for product removal.

OSC (0202) Overlap Slotted Container Used when the length of the box is considerably greater than the width, resulting in a long gap between the inner flaps. The sealed overlap helps to keep the outer flaps from pulling apart. Unlike RSC, the cut pads are not needed with this carton style.

FPF (0410) Five Panel Folder

This style is frequently used for tall/long or heavy products with small widths and depths that would be difficult to lower into the carton. The item is placed on the first long panel and the carton is wrapped around the item with one panel overlapping the first panel. Product Examples: umbrellas, curtain rods, bed side rails/slats

OPF (0401) One Piece Folder

Used for product that has similar length and width dimensions, but has short depth. Products such as mirrors, picture frames, and books.

FTD (0301)

Full Telescope Design Style Container

Used for products that have short depths and the ease of packing / unpacking are desired and where a FPF or OPF may demand larger corrugated. Good examples of product are head-boards, large panel bench and dining tables.

DC (0310) Double Cover Container

Used for large products such as dressers, armoires, media centers, where an HSC could not easily be slid over the top of the product.

RELF/DF (0427) (Die-cut)

Roll End Lock Front with Dust Flaps Mailer

Used for smaller products where ease of packing and product access is desired. In addition to greater stacking strength, this mailer is used where an internal tuck would interfere with the product.

RETT (0470) (Die-cut)

Roll End Tuck Top Mailer

Roll end Tray with Tuck Top and Interior Bottom Flaps or Reverse Walker Lock with Inside Tuck Top. Smaller products where ease of packing and product access is desired.

NOTE: the RSC (Regular Slotted Container) is the most economical to use, however, other styles should be considered depending on the nature of the product. Style such as FOL, FTD, or FPFs can offer additional stacking strength and product protection. Items such as frames, mirrors and various furniture items would benefit from these carton styles. Contact [email protected] with any questions or for recommendations.

Taping/Cushioning

� Carton closures: All master and inner packs must be sealed with either clear vinyl tape, fiberglass reinforced water activated gummed tape or hot-melt glue. No staples are allowed to seal cartons. Tape must be moisture/temperature resistant and must have an adhesive quality that resists drying in transit and storage for a minimum of 6 months. Seal all carton seams.




� Tape quality: Recommend Polypropylene or Vinyl tapes. Reference the 3M Scotch® Brand 373 Polypropylene Tape product specification for detail. Use 2 inch (5 cm) wide for carton with gross weight less than 30 lbs (13.63 Kg). For heavier cartons, use 3 inch (7.6 cm) wide tape.

Good Packaging Practices

� Select a carton style, dimensions and material that fits the product snuggly. Be sure the master carton dimensions are conveyable. Fragile product shall be restricted from internal movement with proper blocking and bracing with foam material (EPS, PU or PE foams) corrugated build up pads, bubble wrap, air pillow, etc.

� Master cartons should be sized correctly to contain inner cartons with no excess headspace and no additional packaging within the master carton. All protective packaging should be found within the inner cartons.

� It is recommended that a 1" (2.5 cm) thick cushion is used for inner cartons and a 2" (5 cm) thick cushion is used for master carton. The cushion should protect the product on all 6 sides of the carton, in an effort to "float" the item centered in the carton.

� Do not use loose fill (e.g. printed newsprint or packing peanuts) as void filler. Shredded paper is permitted only if it is fully contained inside a sealed plastic bag. It is only permitted as void-fill in the inner cartons. It is not to be used as void-fill in master cartons.

� If RSC carton style is used; and the contained product is at risk of being damaged if a sharp object is used to open the carton, fitted carton cut pads should be placed above and below merchandise for protection.

� Carton dividers and/or foam sheeting should be used (when appropriate) to separate, cushion and protect product from abrasion damage.

� Mark cartons containing glass or breakable items appropriately (e.g. fragile, this end up, etc.). � Food items may only be shrink-wrapped on trays if agreed to by CPWM Buyer and CPWM Packaging. Carton

markings must be legibly printed on a label or otherwise printed on the carton. � Table top and ceramic items must be properly separated with corrugated partitions to prevent them from hitting

one another inside the carton and to protect from vibration damage. Air cells should also be considered where applicable to protect from shock impact.

International Safe Transit Association (ISTA)

CPWM Buyers will determine if a product requires transit testing, therefore contact your CPWM Buyer to

confirm if transit testing is required for your product(s). However, all furniture and lamp items are required to be transit tested. In the event transit tests are waived, vendors are required to comply with the minimum packaging guidelines as published on our Vendor Relations website. It is also recommended that all vendors conduct in-house drop testing, especially for vendors shipping fragile product such as glassware, ceramics, mirrors, clocks, frames, framed art, etc. See the CPWM QA Manuals for more details. Please consult with [email protected] if any assistance is needed. CPWM Packaging Engineering has the final authority on all transit test results from BV test labs.

Transit Test results are valid for 24 months unless one or more of the following applies: � Vendors shipping product from multiple factories. In this case, vendors must submit product from each factory

for transit testing. � If we find quality issues (at point of receipt or at any other time) that warrant additional quality tests. Vendors

are responsible for all costs associated with these tests. � If there are any changes to the material make-up of the packaging /product or the manufacturing process that

may affect the quality and/or safety of the product.

Transit Group Testing Similar items may be tested in groups (test one product type and apply the test result to all others) provided they satisfy the following conditions: � The selected test item(s) has the same material make-up and process as the rest of the applicable items. � The applicable item(s) will be packed with the same packaging material and method as the tested item. � Selected test item(s) must be the heaviest and/or the largest of the group.




Group Testing requests require SKU #, pictures of the item, pictures of the packaging and confirmation of material type and factory. Once group transit testing is granted by Packaging, a Certification Statement will be required by vendor to fill out for the associated SKU. Contact [email protected] for group testing requests or questions.

If BV transit testing is applicable to your product(s), it is required to conduct in-house drop testing with successful results (prior to submitting fresh packaged sample for ISTA testing at BV test lab). Use the ISTA procedures found in the CPWM QA Manuals to perform in-house drop tests. Successfully passing the in-house drop test using this procedure will ensure passing the independent test at the BV test lab. When submitting testing samples to BV lab, be sure it is a fresh untested sample to avoid inherent damage from in-house testing. In addition, over pack the test sample to prevent en-route transit damage. Select the appropriate transit test protocol on the TRF (BV Test Request Form), depending on your carton physical characteristics as follows:

IF YOUR PACKAGE IS AND SELECT CPWM Protocol

6 sided carton ( like a cube) Less than 150 lbs (68 Kg) ISTA -1C CP-9029-US

6 sided carton ( like a cube) More than 150 lbs (68 Kg) ISTA -1D CP-9029-US

Flat carton (e.g. mirror) Less than 150 lbs (68 Kg) ISTA - 2D CP-9057-US

Elongated carton (Side Rail) Less than 150 lbs (68 Kg) ISTA - 2E CP-9058-US

Furniture attached on a custom pallet Palletize CP-9052-US

Furniture Requirements:

� Packaging: All KD (Knocked Down) and SKD (Semi Knocked Down) furniture products must be packed in compliance with the KD/SKD Packaging Requirements (see Vendor Relations website). Do not use RSC carton style. RSC carton style is only allowed on FA (Fully Assembled) products.

� Hardware packaging: All hardware must be contained within bags and clearly marked with a colored label or placed in a smaller box, clearly labeled “Hardware Enclosed”. This will decrease the risk of hardware being inadvertently discarded with protective packaging material. Bags must be of the proper gauge and protected as to not break during testing or transit. Each piece of hardware must be easily identifiable via labels indicating the appropriate part number.

� Carton marking: Furniture cartons must be in compliance with the Furniture Carton Printing Requirements located on our Vendor Relations website. Carton layout per mentioned specification must be submitted and approved before production printing.

� Loading: All furniture must be loaded into sea container or trailer in according to CPWM Engineering pre-approved load plan. Contact [email protected] for more details on how to create and submit a load plan for approval. It is important that you provide the following information when submitting loading plan:

• Carton dimensions (L x W x H)

• Carton gross weight

• Carton style (e.g. RSC, FOL, FTC, etc.)

• Type and inside dimension of the sea container you are using (e.g. 40GP, ID 473” x 92.5” x 94.1” (1203 cm x 235 cm x 239 cm)

• Copy of passed BV transit test report is also helpful.

� General furniture loading requirements:

• Load furniture per CPWM approved loading plan. All furniture vendors loading full containers at their factory are required to submit load plans for review and approval PRIOR to shipping. Submit your FINAL load plans to [email protected] 14 days prior to PO ship date. Production packaging should be final. Appropriate buyer/planner must be copied on your request for review and approval. There are no exceptions.

• Load cartons with a snug fit against one another to restrict product shifting.

• Uniform straight column stacking is required whenever possible.

• All voids along the length side of the container must be blocked/braced using air bags, strong void cartons, plywood or treated solid wood per APHIS regulation. Contact [email protected] for details.

• All void at the back of the container/trailer must be filled, block/braced to prevent load shifting during transport and fall out at receiving stage.




• All wooden and/or natural fiber furniture shipments originating from India and Indonesia during the rainy season (typically June-October and November-February for South East Asia) must utilize the proper desiccant/humidity control to avoid mold and moisture issues within the container. The recommended desiccant product is ABSORGEL produced by Absortech International. Contact [email protected] for further information.

NOTE: All furniture vendors must review Container / Trailer Loading Requirements for more details. This document can be found on our Vendor Relations website.

Leather Furniture Packaging

� Furniture Chair, Barstool or Couch Legs/Feet: It is recommended legs or feet of items that need to be attached are contained in a pouch beneath the seat. Be sure zippers for this pouch are tested for lead and surface coating.

� Desiccant: If vendors choose to use desiccants, desiccant packs must be secured within the carton in such a way to avoid breakage. Desiccant beads can cause indentations to the leather surfaces. It is recommended desiccant packs are not simply thrown into the cartons to move about freely, as they may be prone to break in this manner. Please contact [email protected] for recommendations of placement.

� Packaging: It is recommended all leather surfaces are surface protected; however, vendors must be proactive in ensuring elapsed time during shipment and warehousing will not leave indents on the leather surfaces. Any other packaging materials used for added protection such as corners or additional boxes containing other components must be placed in such a way that will not indent the leather over time. In house testing should be performed. Contact [email protected] for assistance.

Jewelry and Accessories Packaging

� Carton Size: Cartons should be planned to cube a 48in x 40in pallet.

Dimensions and Weight Maximum

Largest Dimension 30” (76.2 cm)

Second Largest Dimension 25” (63.5 cm)

Third Largest Dimension 24” (60.9 cm)

2nd

Largest

Largest

Smallest

Rug Packaging

The following rug packaging requirements outline our needs to protect this unique product commodity from the stress encountered in our shipping and handling environment. Unless otherwise specified, all rug vendors should comply to the below requirements when shipping rugs to us: � Sample development Rug Markings: All rugs sent for sample review must be marked with style number and

SKU if available, vendor name, season and year (S11-Spring 2011, F11-Fall 2011, H11-Holiday 2011), Cost PSF, Material content, size of sample.

� Packaging for Shipment: Burlap bags can no longer be used as packaging for any rugs. At a minimum, vendors must use a 6 mil (.015 cm) thick clear Polyethylene or Polypropylene bag for exterior packaging.




� Cartoned Rugs: Rugs smaller than 4’ x 6’ (122 cm x 182 cm) to be packed in corrugated cartons of min. 200 psi burst strength. Heavy rugs may need to be packed inside 275 psi burst strength or better. Select the FPF or FOL end-loader carton style to avoid knife cut during unpacking.

� Rolled and Bagged Rugs: All large rugs 4’ x 6’ (122 cm x 182 cm) or larger must be rolled around rug tubing made from rigid plastic or wounded rigid paperboard to avoid permanent creasing and to allow for ease of handling and storage. The strength of rug tubing must be adequate to support the rug from bending.

� Rolling Orientation/Method: Rugs should be rolled in a compact/tight manner. When rolling a rug, the smallest dimension should be the length of the finished package. For example, when rolling a 6’ x 9’ (182 cm x 274 cm) rug, roll it so that the length of the finished rolled rug is 6’ (182 cm).

� Package In Single Unit: All rugs should be rolled and bagged or packed in carton in single units. � Production packaging labeling: Labels should be placed on both ends of rolled rug with inner carton marking

information (SKU, QTY, DESC) so it can be viewed from both ends. � Hangtag: Product hangtag must contain a color photo of an unrolled rug. Additional contents must be

confirmed with buyer. � Selecting the Bag: Plastic bag (of approved thickness) should be sized to fit snuggly around the rolled rug but

should maintain enough room so the rug can be removed without much difficulty. � Desiccant: Use Silica Gel desiccant packets to absorb any excess moisture and to prevent molding during

transit/storage. The general rule for using Silica Gel is one 5-gram Silica Gel packet per 1 cubit foot volume of product. Silica Gel packets must be stored in a cool, dry and hermetically sealed (to minimize exposure to outside air) area to prevent moisture saturation prior to use. Use properly stored desiccant only in appropriate amounts per manufacturer’s instruction. All packets must be clearly printed “Throw Away - Do Not Eat”. Candidates that may use the silica gel desiccant packets include products such as natural fiber weaved products (e.g. bamboo, reed, water hyacinth, banana fiber, and wicker), leather products, rugs and thick wooden collectible items.

Pillow Packaging � Carton Size: When possible, cartons should be planned to cube a 48in x 40in pallet. � Capacity: Cartons should not be so overstuffed with product that they burst at the seams or that straps are

required to keep it sealed. Straps are not allowed. Cartons must be sized correctly to avoid the use of straps. Vacuum packing is not allowed without permission from the buyer and CPWM Packaging. See photos of unacceptable shipments below.

� If vacuum packing is used, the seal and bag thickness must be adequate enough to maintain its seal throughout transit. Cartons that are bursting at the seams which create extra work for our DCs to warehouse will be subject to chargeback.

Food Packaging

� Carton Styles/Cut pads: Cartons such as a RSC, which commonly require running a blade down the center seam over the merchandise contained, should have a cut pad (a fitted piece of corrugated on the top and bottom of the carton) to protect the merchandise from unintentional damage.

� Trays: Trays must have adequate height in comparison to the product to keep the product stable and contained. Film used for stretch wrap, should contain the product adequately on all sides, with enough slack and heat on the cut ends to ensure product will not fall out under normal distribution and storage handling.

� Corrugated Display Cartons: Corrugated display cartons, which contain retail units, intended to be placed directly onto the shelves must be adequately protected to survive transit on a pallet containing other




merchandise to the stores. Note that other corrugated cartons of various sizes can potentially be stacked on top of these cartons. To discuss your display carton program in further detail, please contact [email protected]

� Best By date: All units, inner cartons and master cartons should be marked with the Best By date. Do not confuse this requirement with the Date of Manufacture.

� Carton Markings: For details on food packaging carton markings, see Section 2-12. � PVC Use: Outlined below is the Toxics in Packaging Prevention Act. CPWM is moving toward eliminating

packaging materials containing toxic substances, such as PVC. Please contact [email protected] if PVC or any like substances are currently being used in any packaging components. CPWM Packaging can assist in recommendations of other material or packaging options.

Toxics in Packaging Prevention Act

Like all other U.S. laws and regulations, all vendors must adhere to the Toxics in Packaging Prevention Act. CPWM Vendors are responsible for ensuring compliance; therefore CPWM strongly recommends that vendors work directly with their packaging suppliers to ensure that all CPWM packaging complies with the Toxics in Packaging Prevention Act. The law prohibits the sale or distribution of packaging containing intentionally added heavy metals (cadmium, lead, mercury, and hexavalent chromium) and sets limits on the incidental concentration of these materials in packaging. The law seeks to reduce the amount of these heavy metals in consumer packages including; unsealed receptacles, carrying cases, crates, cups, pails, rigid foil and other trays, wrappers and wrapping films, bags, and tubs. “Packaging components” – individual or assembled parts of a package that are used to block, brace, cushion, weatherproof, coat, dye, or stabilize the interior or exterior of the consumer product are also included under the legislation.

The Model Toxics in Packaging Legislation was developed in 1989 to reduce the amount of four heavy metals in packaging and packaging components sold or distributed throughout the United States. Legislation based on the Model has been adopted by nineteen states as of the publication of this guide. Many of these states we do business in. No intentional introduction of an amount of the four metals is allowed. The sum concentration levels of incidentally introduced lead, mercury, cadmium, and hexavalent chromium present in any package or packaging component shall not exceed 100 parts per million by weight. Manufacturers of packaging and packaging components, Suppliers of packaging and packaging components, and Product Manufacturers or Distributors who use packaging are responsible for compliance to this Legislation. The manufacturer or supplier to the purchaser must submit a certificate of compliance stating that a package or packaging component is in compliance with the requirements of the law. The purchaser, manufacturer and supplier should keep a copy of the signed certificate of compliance on file as long as that package is in use. The certificate of compliance can be subject to state and public review upon request. For more information, see www.toxicsinpackaging.org

CARTON MARKING INSTRUCTIONS

Pallet Level Marking

Pallets are only to be used for domestic merchandise (excluding some imported food, specialty, and fragile

items). Markings only at the pallet level can no longer be accepted. In other words, all detailed P.O. and item level markings must be done at the carton level (see below). See section 4 for our updated pallet policy.

Carton Marking Requirements

Unless otherwise noted, all cartons described in this section must be marked on at least 2 sides of every carton and should be printed with a suggested minimum of 1” lettering. When using small cartons, the text may be printed in smaller lettering as long as it’s legible, however we do suggest utilizing the largest face of the carton to achieve as close to 1” lettering as possible. Hand written carton markings will NOT be accepted. Vendors will be issued an Expense Offset Fee for non-compliance (see section 6).




INNER CARTON / PACK - MARKING REQUIREMENTS

� SKU# � SKU description � Number of pieces per inner carton

INNER CARTON / PACK - MARKING FORMAT Unlike most retailers, CPWM stores have a significant amount of top stock inventory (see picture below). This is due to the size of our store back rooms. To ensure that CPWM store associates can easily locate product and to ensure that shelves are correctly stocked, we require the following carton marking format for all inner cartons.

� All inner cartons must be marked with a white label on 2 upper adjacent corners (see example on next page). � We recommend the label size to be 1.5" x 2.5". The location of the label must be consistent of every carton

(e.g., a shipment that contains 500 inner cartons must have the label in the same location on all 500 cartons). � Recommended font size for inner carton markings is 16 pts. Recommended font type is Arial or Verdana. � If the carton is smaller than label size recommendations, font and label size can be adjusted accordingly. � This format is not mandatory for food vendors, but is strongly encouraged. � Vendors will be issued an Expense Offset Fee for non-compliance (see section 6).

Inner Carton / Pack Carton Marking Example:

NOTE: If your inner carton only contains one selling unit and is placed "floor ready" in the master carton, inner carton markings are not required as we do not want these markings placed directly on the selling unit/retail packaging. If you have any questions regarding this policy, contact [email protected].

SKU#: 123456

Desc: 4x6 Beveled

Glass Frame Qty: 3

Top stock example




FOOD CARTON / CASE- MARKINGS REQUIREMENTS - the following requirements are acceptable for all food cartons/cases. � Bar code or UPC/EAN number � Item description � # of selling units in the case � “Best By” date (must be included on each individual item, inner carton & master carton)

• For pallets with multiple Best By dates, see “Best By Policy at a Glance” in section 2-32. � SKU# and P.O. # (not mandatory but strongly encouraged)

CARTONS CONTAINING FRAGILE ITEMS (I.E. GLASSWARE, CREAMICS, ETC)

� One top flap and 2 of the 4 sides of the carton in the upper right hand corner must be marked with the word “Fragile”. Please contact [email protected] if further assistance is needed.

RUG-MARKING REQUIREMENTS (rolled rugs 2x3 and larger) – place label on both flat ends of rolled rug � SKU # / SKU description � Size of Rug (e.g., 3 x 5) � P.O. # � 3” x 5” label size is suggested

SPARE / REPLACEMENT PART CARTON - MARKING REQUIREMENTS (where applicable) � See the template titled “Replacement Part Label” found on our Vendor Relations website. � SKU # � Item Description � Part name/number

SAMPLE CARTON - MARKING REQUIREMENTS (All vendors) � The word “SAMPLE” � Buyer name � Department name or number � Product description (not mandatory for food and beverage vendors, but strongly encouraged)

BATH PRODUCTS - EXPIRATION DATE/LOT CODES

� Lot codes only are to be used on all bath products. Expiration dates should not be used unless prior approval is received from the Buyer.

FURNITURE CARTON - MARKING REQUIREMENTS: See document titled “Furniture Carton Marking

Requirements” found on our Vendor Relations website. If you have additional questions, please contact [email protected]. HOLIDAY / SEASONAL CARTON - MARKING REQUIREMENTS: In addition to the markings described in this section, all seasonal items must bear seasonal case labels (on master and inner cartons). We have implemented markings for Easter, Halloween, and Hanukkah in addition to our existing markings for Christmas. Complete instructions and artwork are found on our v Vendor Relations website. If you have additional questions, please contact [email protected]. NOTE: Prior to re-printing packaging containing CPWM seasonal graphics, logos, etc. you must contact the buyer/assistant to ensure no graphic changes are required.

MASTER CARTON MARKING REQUIREMENTS

� MADE IN: This is where country of origin of product should be noted (e.g., India). � PO#: This is where the P.O. # should be noted. This can be found on the P.O. (e.g. 200123456) � DESC: This is where the SKU description should be noted. This can be found on the P.O. (e.g., 4X6 Beveled

glass frame). � SKU: This is where the SKU # should be noted. This can be found on the P.O. (e.g., 368645).




� PCS/SP: This is where the total units per ship pack (inner carton) should be noted. E.g., If you pack 6 units in each ship pack/inner carton, you should note 6.

� TTL/SP’S: This is where the total amount of ship packs (inner cartons) in the master carton should be noted (e.g., If you pack 4 ship packs (inner cartons) in each master carton, you should note 4).

� TTL/PCS: This is where total amount of units in the master carton should be noted (e.g., If you pack 6 units in each ship pack/inner carton, and you pack 4 ship packs/inner cartons in the master carton, you should note 24. 6 x 4 = 24 units in the master carton.

� N.W.: This is where the net weight of the master carton should be noted. Net weight is the total weight of all items in the carton less all packaging. Please be sure to include unit of measure (e.g., LBS, KGS, etc.).

� G.W.: This is where the gross weight of the master carton should be noted. Gross weight is the total weight of the master carton including all packaging. Please be sure to include unit of measure (e.g., LBS, KGS, etc.).

� CU FT: This is where the cubic feet of the master carton should be noted. Cubic feet is the total volume of the carton.

� CTN NO: This is where the number of cartons on the P.O. should be noted (e.g., If there are 10 cartons of SKU12345 and 20 cartons of sku 45678 on one P.O., the total carton count for the P.O. is 30 cartons. The cartons would be labeled 1 of 30, 2 of 30, 3 of 30, etc.)

� ADDITIONAL MARKINGS (where appropriate): Hazardous materials labels and special handling notations are to be used as required (e.g., Fragile, Mirror, This Side Up, Handle With Care, protect from freezing). Mark additional markings (where appropriate) on all sides of the carton.

MASTER CARTON EXAMPLE – 901 MASTER CARTON EXAMPLE – 909

All furniture vendors must refer to our Furniture Carton Printing Requirements on our Vendor Relations web

site.

MASTER CARTON - IMPORTANT NOTES

� If the final carton of a P.O. is a partial carton, special carton marking is required (such as colored tape, colored corrugate, etc.) stating "Partial Carton" along with an identifier that calls attention to the partial carton.

� We may request special carton marking instructions, which will be provided when necessary. � Any shape or style border may be used around the DC name/number to make those words stand out clearly. � Some vendors (such as food, furniture, rug vendors) are exempt from master carton markings. See previous 3

pages. � Excluding items that are displayed in our stores in the master pack (e.g. furniture), a sample price ticket is no

longer needed on the exterior of the master carton.




PRICE TICKETING

Overview

All merchandise shipped to Cost Plus Inc. that does not have a Cost Plus provided UPC and retail price printed on its packaging must be pre-ticketed with a UPC price ticket. Food and beverage vendors are exempt from pre-ticketing unless notified by your Buyer. Those vendors that are required to pre-ticket merchandise with a UPC

price ticket are required to utilize one of our approved ticket service bureaus, Avery Dennison or FineLine

Technologies. This policy is in place to ensure ticket consistency across all of our merchandise and to provide a 10-20% ticket price reduction (in addition to already discounted rate) to all vendors. To receive an exemption to this policy, please contact [email protected]. Please be sure to include your Buyer name and specific reasons for your exemption request. Unless exempt, vendors must use Avery or Fineline price tickets. Vendors will be

issued an Expense Offset Fee for non-compliance (see section 6).

Vendors Utilizing Avery Dennison or FineLine Technologies

Unless granted an exemption from [email protected], vendors must purchase tickets from one of our two approved ticket service bureaus.

Ticket Ordering Process � Avery Dennison: Vendors ordering tickets for the first time will be required to set up an account with Avery

Dennison. The Account Opening Agreement form and the Compliance Express Authorization form can be found on our Vendor Relations website. If you have an existing account with Avery but are not currently ordering tickets on line, you will be required to submit a Compliance Express Authorization form to Avery Dennison prior to placing your first on line ticket order. The Avery Dennison On Line Ordering User Guide is located on our Vendor Relations website.

� FineLine Technologies: Vendors ordering tickets for the first time will be required to set up an account with FineLine Technologies. To set up your account and place an order with FineLine, refer to the FineLine Technologies Ticket Ordering User Guide located on our Vendor Relations website.

� NOTE: It is the vendor’s responsibility to determine which ticket type (see next page) would best suit the product. Send an email to your Buyer if you're not sure which price ticket to use on your product.

Lead-time Lead time from all Avery facilities is 3 - 5 business days (+ transit time). Lead-time from all FineLine facilities is 2 – 3 business days (+ transit time). NOTE: Tickets must be ordered with enough lead-time to ensure the shipment of the P.O. is not delayed. We do

not accept late shipments due to an Avery Dennison or FineLine Technologies delay, therefore please be sure

to allow enough lead time with your price ticket order. In regards to lead time, the “clock” starts when the ticket order is received and is confirmed to be accurate. To prevent potential data errors on your tickets, do not order tickets too far in advance. Any questions regarding whether or not P.O. data is final should be directed to your CPWM Buyer or Planner prior to your ticket order placement.

Billing Avery and Fineline Technologies will bill all ticket and shipment costs directly to the vendor. Payments may be handled in two ways:

NOTE: The vendor is responsible for ensuring adequate carton strength for the handling and transportation of merchandise. Vendors that are identified as having poor packaging will be solely responsible for all costs associated with damages. Contact [email protected] with any questions.




Credit Terms: Vendors may choose to set up an account with Avery or Fineline prior to placing the first order. Avery’s form is located on our Vendor Relations website. See the Fineline Technologies Ticket Ordering User Guide for more details (available on our Vendor Relations website.) Cash in Advance/Pro Forma: Ticket orders must be paid for prior to shipping unless a credit account is set up.

Ticket Placement

� Tickets should be placed in the least noticeable location (back/bottom of the item and/or packaging), but must be easily located for scanning at point of sale. The location of the ticket must be consistent of every unit of the same item (e.g., a shipment of 500 glasses must have the ticket in the same location of each unit). Those

vendors that do not adhere to this policy will be charged-back for all costs associated with re-work.

� Tickets must be attached in a location where there is no possibility of damaging the merchandise. � Tickets shall be placed so that they do not obstruct the UPC or product information on packaging. � Hang tags and strip/barbell tags must be attached in an easily accessible location, yet not where they could be

torn off by normal wear and tear. � Jewelry/Accessory vendors should refer to the Jewelry & Accessories Price Ticket Placement document

(located on our Vendor Relations website). � Furniture vendors should refer to the CPWM Quality Assurance Manual - Furniture Vendors Only (located on

our Vendor Relations website). Furniture price tickets must not include a retail price on them. This is a mandatory requirement unless directed otherwise by the CPWM Buyer.

Ticket Types

There are numerous ticket types available. The most common ticket types are shown below. Please refer to the Avery Dennison On Line Ordering User Guide located on our Vendor Relations website for a complete listing of all approved ticket types. NOTE: FineLine Technologies has the availability to print only the ticket types shown below. If the ticket type required for your products is not shown below, you must order tickets with Avery.

1" x 1" Standard - semi-permanent adhesive (sticky) tickets - Below you will find examples with PO number

(all vendors excluding toy vendors) and age grading (toy vendors only).

� This is the preferred ticket type, and should be used whenever possible. � All sticky tickets have a tamper-proof cross-cut in the body of the ticket. � The adhesive is semi-permanent (it adheres to the product without falling off, but does not leave a non-removal

residue behind). All vendors (excluding Toys) Toy vendors only

1" x 1"Hang tags - Below you will find examples with PO number (all vendors excluding toy vendors) and

age grading (toy vendors only).

� Hang tags should be used on merchandise that can’t accommodate the standard sticky ticket (examples would include baskets).

� These can be attached either with a plastic loop or with a plastic hangbone – string may not be used � The hang tag must be placed where it can’t slip off and shall be attached without damaging the product.




All vendors (excluding Toys) Toy vendors only

2.5" x .5" Strip/Barbell tags - Below you will find examples with PO number (all vendors excluding toy

vendors) and age grading (toy vendors only).

� Strip/barbell tags should be used on merchandise that can’t accommodate the standard sticky ticket or the hang tag (examples would include artificial flowers). All vendors (excluding Toys) Toy vendors only

Age Grading for Toy Vendors – Select applicable age grade from the drop down selection list provided. See Age Grade list below:

6 Months and Up

18 Months and Up

2 Years and Up

3 Years and Up

4 Years and Up

4 Through 5 Years

5 Years and Up

6 Years and Up

6 Through 8 Years

7 Years and Up

8 Years and Up

9 Through 12 Years

All Ages

Other Ticket Types and Hang Tags - Check the Avery Dennison On Line Ordering User Guide located on our Vendor Relations website for other price tickets and hang tags such as: � Jewelry/Accessories Cards & UPC Tickets � Low Adhesive Sticky Ticket Order Form - NON-TOY Vendors Only � 2 For $XX.XX and Decorative Only Statement � Collectibles Vendors (dept 1) Only

Note for Furniture Vendors Only: Furniture price tickets must not include a retail price on them. This is a mandatory requirement unless directed otherwise by the CPWM Buyer/Assistant.

Vendors Printing Own Tickets Unless granted an exemption, vendors must purchase tickets from one of our two approved ticket service bureaus. To receive an exemption to this policy, email [email protected] with your Buyer name and specific reasons




for your exemption request. Only vendors granted an exemption may use a non-Avery or non-Fineline price ticket. Vendors will be issued an Expense Offset Fee for non-compliance (see section 6). Those vendors that receive an exemption must use the below ticket specifications when printing tickets for our merchandise and must submit sample tickets to their Buyer for final approval. Vendors printing their own tickets are responsible for the readability of bar codes. Please note that the appropriate CPWM Purchase Order number (or age grading - toy vendors only) must be included on all UPC tickets. See previous page.

Ticket Content and Format

Ticket Content: Must include the following information:

The World Market logo shall be used if possible. The logo is available on our Vendor Relations website. The words “WORLD MARKET” shall be at the top of the ticket. If the logo cannot be reproduced due to technical constraints, the words “WORLD MARKET” shall be bold and capitalized in at least 7 points. Purchase Order number (or Age Grading - toy vendors only). The registration mark - ® - shall be used after the words “WORLD MARKET” on all tickets. The human-readable version of the bar code shall be underneath the bar code. The retail price shall be clearly marked on each item (furniture items may be excluded). The Country of Origin must be marked on each item below the retail price (along the words “Made In”). The item number shall be converted to an 8 digit scannable bar code using EAN8 symbology. � The bar code number format is : 2SSSSSSC

• 2 = The leading digit is always a “2”

• S = The last 6 digits of the SKU number. If the SKU # is less than 6 digits, “0” will be added after the leading digit to fill out 6 digits. If the SKU# is longer than 6 digits, 6 digits starting from the right shall be used (e.g., 4237658 = 237658)

• C = The trailing digit is a check digit, which is calculated by using EAN8 methodology.

Ticket Format Font/Colors – in a Sans Serif font (such as Helvetica) using black ink on white stock The World Market logo is preferred. However we will accept WORLD MARKET® (there’s a ‘circle R’ after the T). The logo is available on our Vendor Relations website. Barcode – minimum height 1/4” (.25”) Point size: � WORLD MARKET logo - minimum of 7 points � UPC/EAN/SKU – minimum 8 points � P.O. or Age Grade – minimum 5 points � RETAIL – minimum 8 points, 10 points preferred � COUNTRY OF ORIGIN – minimum 5 points

QUALITY ASSURANCE

Overview

The quality of product received at our DC's and/or stores should be produced consistently to that of the approved sample approved by the CPWM Buyer. If the product quality deviates in performance and/or appearance from the approved sample, we may not be able to sell the product, therefore all expenses of this inventory will be charged

WORLD MARKET®

23456789

P.O. # or Age Grade

$26.00 Made in India

NOTE: Those vendors that are required to pre-ticket merchandise with a UPC price ticket are required to utilize one of our two approved ticket service bureaus.




back to the vendor. See the CPWM Quality Assurance Manuals for more details. If after reading the QA Manuals you still have questions, please contact [email protected]. The CPWM QA Manual is now separated into two versions. There is a version dedicated solely to Furniture Vendors titled; Quality Assurance Manual 2011 - Furniture Vendors Only. The other version covers all other product categories (excluding food and beverage) and is titled; Quality Assurance Manual 2011 - Excluding Furniture, Food, and Beverage Vendors. Both Manuals will be hereby referred to in this Guide as Quality Assurance Manuals. These manuals can be found on our Vendor Relations website When a quality and/or damage issue arises, the resolution of the issue can be time consuming and during that time period, the product is unavailable for sale. In the event that product requires major inspection, touch up, repair or repackaging, (that should have been caught in the production process or due to insufficient packaging) the vendor will be charged back accordingly. These charge-backs will not include normal inspection and handling time that we would expect to occur. Depending on the specific situation, the charge-back may include costs of advertising, inspection, re-work, warehousing, lost sales, applicable expense-offset fees, etc. See section 6 for Expense Offset Fee details.

Quality of Workmanship

To avoid or minimize quality issues, vendors are expected to carry out inspections regularly in accordance with ANSI ASQ Z1.4. An AQL of 2.5 should be used for all soft-lines and non-furniture hard-lines. For furniture items, an AQL of 4.0, normal inspection, general level 2, a single sampling plan should be used. This is to ensure that the quality of the materials, workmanship, parts, labeling, styling, and finished product meet the specifications and conform to the samples upon which the purchase order was based. Inspections must be implemented for all stages of production (material, in-line and final). Issues caught early in the production stage can be corrected. This will save time and prevent production delays. The examples highlighted below illustrate final inspection quantities required for AQL 2.5 (soft-line / non-furniture hard-line) and AQL 4.0 (furniture only), single sampling plan. Example 1: AQL 2.5 Normal inspection Level II, single sampling plan: If the P.O. calls for 300 units of SKU 123456 to be shipped, the required sample size for the vendor to inspect would be 50 units. If no more than 3 errors (defective) are found, the shipment is acceptable; if 4 or more errors (defective) are found then 100% of the shipment is to be inspected by the vendor (or Agent if applicable).

AQL 2.5 Normal inspection Level II, single sampling plan

Soft-line and Non-furniture hard-line SKU Order Quantity Sample Size Accept Reject

2 thru 50 5 0 1

51 thru150 20 1 2

151 thru 280 32 2 3

281 thru 500 50 3 4

501 thru 1200 80 5 6

1201 thru 3200 125 7 8

3201 thru 10000 200 10 11

10001 thru 35000 315 14 15

All Quality Assurance questions should be sent to [email protected]




Example 2: AQL 4.0 Normal inspection Level II, single sampling plan: If the P.O. calls for 300 units of SKU 123456 to be shipped, the required sample size for the vendor to inspect would be 50 units. If no more than 5 defectives are found, the shipment is acceptable; if 6 or more defectives are found then 100% of the shipment is to be inspected by the vendor (or Agent if applicable). If 100% of the shipment is inspected, AQL of 2.5 level is

used to sort defective units from quality merchandise.

AQL 4.0 Normal inspection Level II, single sampling plan

Furniture only

SKU Order Quantity Sample Size Accept

Defective Qty

Reject

Defective Qty

2-8 2 0 1

9-15 3 0 1

16-25 5 0 1

26-50 8 1 2

51-90 13 1 2

91-150 20 2 3

151-280 32 3 4

281-500 50 5 6

501-1200 80 7 8

1201-3200 125 10 11

NOTE: Our goal is not just to meet the selected AQL, but exceed it by improving design, manufacturing, packaging, and shipping processes so that the error rate is always less than the selected AQL. See the CPWM Quality Assurance Manuals (located on the CPWM Vendor Relations website) for more details.

Quality Assurance Product Testing (non food & beverage vendors only)

Overview

We know that you share in our commitment to provide quality merchandise to our customers. To safeguard the quality of purchases and to ensure that merchandise will meet our customer’s expectations, we require that all merchandise meet all Federal, State, and Local U.S. laws and regulations, as well as our expectations for product quality and packaging. It is the vendors’ responsibility to be aware of and to meet all legal requirements as

well as our quality expectations. For all items, we require proof of compliance to ensure the following: � All Federal, State, and Local legal requirements are met. � The product meets our quality and performance requirements.

Requirements

QA testing is required for all items (excluding food/beverage) unless granted an exemption from

[email protected]. Transit testing is recommended for all fragile items (see section 2, ISTA), but is required for all furniture and lamp items. Please contact your Buyer to confirm if your product requires transit testing. We have partnered with Bureau Veritas (BV) and SGS to operate a comprehensive product testing quality assurance program. Before goods can be shipped to us, vendors must provide a passing report (or must receive an exemption from [email protected]) for our Quality Assurance tests. The cost for testing is the vendor's responsibility; however since we have an established partnership with Bureau Veritas, the cost has been reduced by 30% (beyond already discounted rate). The cost for SGS is reduced by 25% (beyond already discounted rate). Vendors must keep a copy of all test results, and must provide a copy to their CPWM Buyer, to [email protected], and to the applicable CPWM Consolidator (see next page for more details).

NOTE: We may conduct preliminary, final, and random inspections to verify that merchandise is of acceptable quality. When inspection failures occur, the remainder of the items in the shipment will be inspected, or will be rejected and returned to the vendor with no further inspection. The costs for all of

these activities will be charged back to the vendor. See section 6 for more details.




Vendors are required to utilize our approved testing partners, BV or SGS. To receive an exemption to this policy, please email [email protected]. Please be sure to include applicable CPWM Buyer name and specific reasons for your exemption request. Those vendors (not granted an exemption) that use testing labs other than BV or SGS, will be charged-back for all costs associated with re-testing through BV or SGS. It is critical that all QA tests

submitted through BV or SGS are submitted under the Cost Plus Inc. program. This should be done via the Quality Assurance Test Request Form, which is located on our Vendor Relations website under Forms. We will determine which tests are required, and subsequent test results will be emailed to the vendor and to us.

Quality Assurance Test Enforcement Policy

In order to ensure the proper testing protocol is followed and to avoid shipping delays, we have instituted the following Quality Assurance Test Enforcement Policy:

Import vendors (non-food/beverage)

Prior to shipment, vendors must submit a passing QA product test result from BV or SGS to the appropriate CPWM Buyer and to [email protected]. If there is a QA testing failure, or if you would like to request a testing waiver, a CPWM QA Testing Waiver Form (located on our Vendor Relations website) must be filled out and sent to [email protected]. A passing QA PRODUCT test report from BV, SGS, or a CPWM QA Testing Waiver Form

must be submitted to the consolidator at the time of booking. This applies to all import SKU's and all shipments, excluding food and beverage. Failure to submit one of these documents will result in your booking request being denied. It is the responsibility of the vendor to ensure testing is performed at least 6 weeks prior to the ship date noted on the P.O. This allows enough time to make any required changes to the product and re-test if applicable while maintaining the original ship date noted on the P.O. We strongly suggest you adhere to this time frame as test waivers and or requests to revise P.O. ship dates will not be granted due to late submission of testing samples. The consolidator will upon receipt of a non-compliant booking request notify CPWM who will in turn post an Expense Offset Fee (see section 6) of $500 per sku per shipment to your account. Upon receipt of the required document for each sku the consolidator will proceed with booking the shipment. Submission of the form after the fact will not result in a waiver of the Expense Offset Fee. In addition, if you provide the missing document to the consolidator and the booking is accepted with less then the required 10 or more days prior to the ship date stated on the P.O., you will receive an Expense Offset Fee (see section 6) of $250 for booking late. For example, you request a booking and do not supply the required testing document as listed above, for 2 of the 6 skus shown on the P.O.; you will receive an Expense Offset Fee of $1000 ($500 for each non-compliant sku). Upon receipt of the required document, the booking is accepted on the 9th day prior to the ship date stated on the P.O. You will receive an Expense Offset Fee of $250 for booking the P.O. late. You will receive a total Expense Offset Fee of $1250 for this shipment. There will be no exceptions. Also, this policy does not apply to transit tests. See below for more details.

Consumer Product Safety Improvement Act (CPSIA) for all Vendors

The Consumer Product Safety Improvement Act (CPSIA) is law. It includes many regulatory changes that impact products you sell to CPWM, including toys, children’s products, furniture, rugs, candles with metal wicks, clothing and cleaning products. (Children’s products are products designed or intended primarily for

children 12 years of age or younger.) The regulations apply to products manufactured on or after November 12,

2008. Some of the procedures and requirements relating to CPWM purchases are set forth below: � General Certification of Conformity (GCOC) – A certification, based on a reasonable testing program is

required for each shipment of adult and children’s products that are subject to a consumer product safety rule, ban, standard or regulation enforceable by the CPSC including furniture, rugs, candles with metal wicks

clothing and cleaning products. As a domestic vendor, you must be able to supply Cost Plus and/or the CPSC with a General Certification of Conformity upon request for all covered products manufactured on or after November 12, 2008. The form is located on our Vendor Relations website under Forms.

� Children’s Products Certificate - Toys and children’s products must have a Children’s Products Certificate based on Third Party Testing issued by a CPSIA recognized independent third party test lab for lead in paint and other surface coatings and small parts. Lead in substrate and phthalates currently do not require a Children’s Products Certificate. However, must be in compliance with all applicable rules and bans. Therefore, all Toys and children’s product must be tested to the Cost Plus Toy and Children’s Product protocols.

� QA Test report, GCOC, and Children’s Products Certificate must still be sent to [email protected].




Please note: In December of 2009 the CPSC lifted the stay to the CSPIA legislation on certain categories. The stay will officially be lifted on 2/14/2010 for the following sections or areas of the law:

� Lead in Surface Testing (non children’s products):

• A GCOC is needed for adult furniture effective 2/14/2010 (16CFR 1303-BAN OF LEAD-CONTAINING PAINT).

� Lead in Candles with Metal Wicks Testing:

• GCOC is needed for candles with metal wicks effective 2/14/2010 (16 CF 1500.12(a)(2). In January of 2011 the CPSC lifted the stay to the CSPIA legislation on certain categories. The stay will officially be lifted on 1/26/11 for the following sections or areas of the law � Flammability Testing for rugs/floor coverings:

• A GCOC is needed for small and large rug/floor coverings due to stay being lifted 1/26/11 (16CFR 1630 & 1631-STANDARD FOR THE SURFACE FLAMMABILITY OF CARPETS AND RUGS).

� Flammability Testing for adult garments:

• A GCOC is needed for Adult apparel due to the stay being lifted 1/26/11 (16CFR 1610-STANDARD FOR THE FLAMMABILITY OF CLOTHING TEXTILES).

All fabrics must meet the requirements of 16 CFR 1610. That includes children’s clothing and adult clothing. Of course, children’s sleepwear must meet 16 CFR 1615/1616. These laws have been applicable since the 1950s. 1610.1 (c) Specific exceptions. This standard shall not apply to: (1) Hats, provided they do not constitute or form part of a covering for the neck, face, or shoulders when worn by individuals; (2) Gloves, provided they are not more than 14 inches in length and are not affixed to or do not form an integral part of another garment; (3) Footwear, provided it does not consist of hosiery in whole or part and is not affixed to or does not form an integral part of another garment; (4) Interlining fabrics, when intended or sold for use as a layer between an outer shell and an inner lining in wearing apparel. (d) Specific exemptions. Persons and firms issuing an initial guaranty of any of the following types of fabrics, or of products made entirely from one or more of these fabrics, are exempt from any requirement for testing to support guaranties of those fabrics: (1) Plain surface fabrics, regardless of fiber content, weighing 2.6 oz. per square yard or more; (2) All fabrics, both plain surface and raised-fiber surface textiles, regardless of weight, made entirely from any of the following fibers or entirely from combination of the following fibers: acrylic, modacrylic, nylon, olefin, polyester, wool.

If you have adult clothing that falls within an exemption, you can certify that you comply with 16 CFR 1610 because you are exempt under a specific provision (if you already provide a guaranty to that effect, you can most likely certify by referencing that guaranty). Note that guarantees may be provided voluntarily if you are a US importer or manufacturer (part 1608). Otherwise you are required to be in compliance with 16 CFR 1610, and will have to provide certification for general conformity to that effect as of 2/10 (once the temporary stay on testing and certifications is lifted). (Children’s products will also be subject to third-party certification as of that date).

Please note this does not mean you do not need to pass product testing for these areas. It only means you do not need to list the above on your GCOC or you do not need to submit a GCOC until the stay has ended. We will still be monitoring all testing to make sure all CPWM protocol testing has been completed.

Mandatory Third Party Testing of Children’s Products and Toys Every manufacturer of a children’s product or toy must have its product tested by an accredited independent testing lab and obtain a certificate stating that product meets all applicable CPSC requirements. Both BV and SGS are accredited by CPSC and are the required Cost Plus testing partners. BV and SGS will issue a Third Party Testing Certificate along with the test report. The implementation of the Third Party Testing requirement is staged, with the first Certificates due starting December 21, 2008. To comply with this law you must provide the following: � Third Party Testing Certificate from BV or SGS for each SKU in each shipment of toys and children’s

products sold to CPWM. This certificate should be sent along with the QA test report to [email protected]. This applies to every shipment.




� Toys and Children’s Products that have lead in paint or surface coatings and small parts must have a

Children’s Products Certificate based on Third Party Testing.

� Third Party Testing and certification for children’s products are phased in per rolling schedule noted below.

Standard Third-party testing required

Lead Paint 12/21/08

Small parts 2/10/09

Children’s metal jewelry 3/12/09

300 ppm total lead content 2/10/11

� Product without a Children’s Products Certificate will be refused or returned and a $500 Expense Offset Fee (per SKU/per shipment), will be issued. Vendor will be responsible for any fines, costs, or expenses resulting from failure to timely deliver a Children’s Products Certificate. There are no exceptions.

Testing Standards for Lead and Phthalates

� Lead in Substrate - Effective August 14, 2009, the standard is 300 ppm for all Toys and Children’s Products. The BV protocol for lead in substrates has been updated to 300 ppm.

� Lead in Surface Coating – Effective August 14, 2009, the standard is 90 ppm for all Toys, Children’s Products and Furniture in inventory. Note this standard applies to ALL furniture with a surface coating.

� Phthalates –The standard is 1000 ppm for Toys and Childcare products sold beginning January 1, 2009. Toy/Children’s Product protocols were updated in July, 2008 with the revised standard.

Recap of Testing Protocols

Item New

standard

Effective Product

Lead in Surface Coating

90 ppm All inventory on or after August 14, 2009

Toys/Children’s Products/ ALL Furniture

Lead in Substrate 300 ppm All inventory on or after August 14, 2009. The lead

limit will be reduced, if

technologically feasible, to

0.01% (100ppm) on Aug. 14,

2011

Toys/Children’s Products.

Phthalates 1000 ppm Products sold on or after January 1, 2009.

Toys/Children’s Products.

Tracking label- Section 103 of the CPSIA, entitled “Tracking Labels for Children’s Products,” mandates, in pertinent part, “distinguishing marks” on all children’s products and their packaging to enable the manufacturer and the ultimate purchaser to “ascertain” certain source and production information. These markings are to enable the manufacturer, retailers and the ultimate consumer to ascertain the manufacturer or private labeler, location and date of production of the product, and cohort information (batch, run number, or other identifying characteristic). � This means that all children’s products and their packaging manufactured on or after August 14, 2009 must bear

a permanent “tracking label”. (Children’s products are products designed or intended primarily for children 12 years of age or younger.)

� The purpose of the label is to enable consumers to specifically identify products subject to safety recalls. Based on CPSC’s requirements, please see following required cohort information for CPWM children’s products:

Cohort Information – CPWM Minimum Requirements

� PO # e.g. PO #200312345 � Manufacture date (last month/year date of production) mm/yyyy e.g. Mfg 11/2009




� Name of Manufacturer or World Market logo if private brand � City and Country of Origin

Textiles/Plush

Textile and Plush products require a sewn in label. CPWM requires the sewn in label follow the format and information shown in below templates.

Sewn In Label – Textile

Toys/Children’s Product

Stuffed Toy Label

Include:

PO #

MFG – date production was completed (mm/yyyy)

Small Toys (Bin/other small toys without packaging when permanent markings not feasible)

For small toys where permanent markings are not feasible, vendors should apply a CPWM UPC toy tickets provided by Avery Dennison and Fineline Technologies as they include CPWM cohort information. See below for the available ticket types:

Sticky ticket Hang Tag

Barbell Strip




All Other Toys

Labeling is not permitted. Permanent cohort information must be on product and packaging (if any). � PO # e.g. PO #200312345 � Manufacture date (last month/year date of production) mm/yyyy e.g. Mfg 11/2009 � Name of Manufacturer or World Market logo if private brand � City and Country of Origin

Placement of Cohort Information on Packaging

� Header card - back of header card � Package - adjacent to country of origin

Vendor Cohort Information

Vendors should adhere to CPWM minimum cohort requirements even when you have your own cohort information. If this cannot be done, vendor will need to be able to provide us with a cross reference for CPWM cohort information by email to [email protected].

Important Notes � QA Testing: All tests and corresponding GCOC and Children’s Products Certificate must be based on

random product from production (not prototypes/samples).

� CPSC Detention of Products at Import:

• As of June 14, 2010, CPSC’s Import Surveillance Division (CIS) is working in conjunction with U.S. Customs and Border Protection (CBP) to identify and examine imported shipments of consumer products. As part of this effort, CIS has co-located investigators at many of the largest ports of entry who work side-by-side with CBP staff.

• CPSC has the authority to determine the admissibility of consumer products and some hazardous substances offered for import. If it is necessary to detain a product in order to determine its admissibility into the United States, CPSC will issue a Notice of Detention.

• If imported product is found to be in non-compliance with CPSIA, vendor will be liable for all costs associated including loss of sales, fines and fees imposed, as well as any other miscellaneous costs.

• See following link for additional details: http://www.cpsc.gov/businfo/importsafety.html � Group Testing: For Toys, Children’s Products and Cleaning Products, group testing will no longer be allowed.

Each sku/style must be tested. See Group Testing Section below for more details. � Partial Testing: No partial/component testing is allowed for products requiring a GCOC and Children’s

Products Certificate. Product must be tested fully to the applicable CPWM protocol. For more detailed information and to receive updates to the Consumer Product Safety Improvement Act (CPSIA), go to the CPSC website at: http://www.cpsc.gov/about/cpsia/cpsia.html#signup

Domestic vendors (non food/beverage)

Prior to shipment, vendors must submit either a passing QA product test result from BV, SGS or a CPWM QA

Testing Waiver Form to their CPWM Buyer and to [email protected]. Vendors will be issued an Expense Offset Fee for non-compliance (See section 6).

Procedures for submitting a CPWM QA Testing Waiver Form:

The QA Testing Waiver Form will be used when there is a testing failure or when the vendor or agent has requested a group test. For a product failure waiver or Group Testing request, see below.

Process for Waiver Requests: � Vendor / Agent submits QA Testing Waiver Form for QA testing failure to [email protected] within one week of

receiving the failure and at least 4 weeks prior to the ship date. � Vendor / Agent will be responsible for the following boxes on the Testing Waiver Form: Skus Covered, Type of

Approval, Test # Referenced, Date of Testing Waiver and Summary. If these boxes are not filled out correctly, CPWM QA will return the form to Vendor /Agent.




� Vendor / Agent returns the QA Testing Waiver Form via e-mail which includes any referenced test reports and certification statements. Please keep all documents attached to the original e-mail. Do not alter the e-mail subject title throughout process.

� If warranted, QA gives approval for waiver to Vendor / Agent. � QA will return the QA Testing Waiver Form with a CPWM Confirmation Number locked in PDF format. � Vendor is required to send QA Testing Waiver Form to consolidator along with all other export documents. � Test failures may require corrective action by substituting components or design change as approved by buyer.

Whenever there is a change in components or material type, product must be retested and meet all testing requirements. Vendor must be sure production goods include compliant components/materials. In order to ensure we are receiving safe and compliant merchandise, we are taking following measures:

• Upon receipt at the distribution center, QA will perform random testing of this product before it is allocated to the stores.

• If product is found to be non-compliant, it will be pulled from the selling floor, destroyed, and claim will

be issued for loss sales, store/DC labor cost, as well as all other applicable costs incurred.

Important notes:

� Vendors that do not adhere to this policy will be issued an Expense Offset Fee of $500 per sku, per shipment, will be charged for expedited testing services, and may be placed on payment hold. There are no exceptions.

� Test results are valid for 12 months from the Date Out field of the BV or SGS test report. For example, PO ship date is February 15, 2008. Passing test report Out Date was February 1, 2007. This report is now expired and quality re-testing is required.

� CPWM QA Testing Waiver Forms are valid until the date noted in the upper right hand corner of the form. It is the vendor’s responsibility to submit new test results or waiver requests after the expiration date noted on the waiver form.

� Waivers will not be granted for any regulatory failures (e.g. Prop 65, FDA, lead in surface coating, etc.) � It is not acceptable for vendors to expand or move the production to another facility/factory without prior

approval from CPWM. � It is the vendor/agent’s responsibility to become familiar with this policy and incorporate it as part of their

production schedule. We strongly suggest that you submit test results at least 6 weeks prior to your scheduled ship date. Doing so will allow for proper organization and implementation of testing and will help to avoid last minute issues and problems. This will also guarantee that sufficient time is allotted to take corrective action for failed test results.

Important Notes Regarding Testing and Re-testing

Transit Test results are valid for 24 months; Product Test results are valid for 12 months unless one or more of the following applies: � Vendors shipping product from multiple factories. In this case, vendors must submit product from each factory

for quality and transit testing. � If we find quality issues (at point of receipt or at any other time) that warrant additional quality tests. Vendors

are responsible for all costs associated with these tests. � If there are any changes to the material make-up of the product or the manufacturing process that may affect the

quality and/or safety of the product.

Group Testing / Partial Testing– Product � Due to the Consumer Product Safety Improvement Act (CPSIA) group testing is no longer approved for Toys,

Children’s Products and Cleaning Products. � Some group testing may be allowed in regards to rugs, furniture and textiles, please consult [email protected] if

you have any questions. � Due to the Consumer Product Safety Improvement Act (CPSIA) partial is no longer allowed. Every component

of every sku/style must be tested. � Similar items may be tested in groups (test one product type and apply the test result to all others) provided they

satisfy the following conditions:

• The skus in question are not Toys, Children's Products and Cleaning Products.

• The selected test item(s) has the same material make-up as the rest of the applicable items.

• The selected test item(s) has the same production process as the rest of the applicable items.




• The selected test item(s) are manufactured in the same factory.

NOTE: Group Testing requests require vendors or agents to submit a Group Test Tracking Sheet that is located on our Vendor Relations website. The Group Test Tracking Sheet must be filled out and sent to [email protected]. Sku #, pictures of the item, and confirmation of material type are needed to complete the request.

Process for Waiver Requests in the case of a Group Test:

� Vendor / Agent submits CPWM QA Testing Waiver Form for Group Testing within 6 weeks prior to the ship date. The request must include: all sku #’s that will be affected by the grouping in the title of the e-mail subject line as well as pictures of all products.

� Vendor / Agent supplies QA with Certification Statement on company letter head, signed by Vendor that connects the tested sku# to the sku# that is being grouped. If no sku # has been assigned to the product being tested, use the test # in its place. The form is located on our Vendor Relations website under Forms.

� Vendor / Agent will be responsible for the following boxes on the Testing Waiver Form: Skus Covered, Type of Approval, Test # Referenced, Date of Testing Waiver and Summary. If these boxes are not filled out correctly, CPWM QA will return the form to Vendor /Agent.

� Vendor / Agent returns the CPWM QA Testing Waiver Form via e-mail which includes any referenced test reports and certification statements. Please keep all documents attached to the original e-mail. Do not alter the e-mail subject title throughout process.

� If warranted, QA gives approval for waiver to Vendor / Agent. � QA will return the CPWM QA Testing Waiver Form with a CPWM Confirmation Number locked in PDF

format. � Vendor / Agent is required to include CPWM QA Testing Waiver Form to consolidator at the time of booking. In addition to our QA testing policy described in this section, vendors are now required to conduct in-house QA testing on each batch of goods, and items must be tested in-house at multiple stages of production to ensure product does not contain lead or other hazardous material. Again, it is the vendors’ responsibility to be aware of and to meet all U.S. legal requirements, as well as our quality expectations. Vendors that do not meet these requirements will be held responsible for all costs associated with non-compliance.

Below you will find some helpful links regarding applicable Federal and State regulations and requirements: � U.S. Department of Agriculture and Safety (USDA –http://www.usda.gov ) � Consumer Products Safety Commission (CPSC –http://www.cpsc.gov ) � Weights and Measures (http://ts.nist.gov/WeightsAndMeasures/upload/06-H130-Complete-Final123.pdf) � Food and Drug Administration (FDA –http://www.fda.gov ) � Underwriters Laboratories (UL –http://www.ul.com ) � International Association of Bedding & Furniture Law Officials (ABFLO – http://www.abflo.org ) � Consumer Product Safety Commission (CPSC). Documents can be found in English, Chinese, Vietnamese and

Spanish under the Industry Guidance and International Activities links at following website - http://www.cpsc.gov/businfo/businfo.html

Product Testing – BV Laboratory Locations For those vendors that have general questions regarding BV, you may go to the BV website at www.bureauveritas.com. To view BV lab locations review the BV Lab Locations listing (available on our Vendor Relations website). BV labs are identified with an L for Lab or S for Sales Office. Note: If you have never tested through BV you should contact your local lab before product submission to ensure testing can be completed at that location.

You may obtain copies of all CPWM BV Testing Protocols at: www.bureauveritas.com/wps/wcm/connect/bv_com/Group/Home/About-Us/Our-Business/Our-Business-Consumer-Products/




Under Client Access click on the link titled: Click here to access BVcpnet . Username: cvendor660 Password: co660vendo. Check the Protocol Matrix to look up protocols by protocol name or protocol number. The Protocol Matrix can be found following the listing of the protocols. The BV Test Request Form (TRF) is also posted on the BVcpnet. The TRF must be submitted with all testing. Included in the form is a ‘Material Composition of Components’ row. Vendors are responsible to ensure the component makeup is what is stated on the form.

Product Testing – SGS Laboratory Locations

Effective December 13th 2010, CPWM has designated SGS as an approved consumer product testing service provider. The launch with SGS is a limited roll out to only select product categories. You will need to check the listing of current protocols within the SGS website to see if the products you manufacture are available for testing through SGS. If your product category is included in the initial roll out of SGS, you now have the option to test your products with either SGS or Bureau Veritas. If your product category is not included in the initial roll out of SGS, you will need to test the products through Bureau Veritas. To get started using SGS as a testing partner, please go to their website: http://www.sgs.com/online_services.htm. Here you will find contact information for SGS labs and the CPWM test request forms and CPWM test protocols. Certificates of Compliance (COCs), which are required for shipping purposes, can now also be issued by SGS. If this is the first time your company will be using SGS, you are required to fill out a credit application. The application is available on the CPWM Vendor Relations website under Vendor Relations. This must be completed prior to submitting your products for testing. cp03 is your username/password for our Vendor Relations website - http://www.worldmarketcorp.com/vendor-relations/

To begin the testing process, simply place cpwmvendor in both the Username and Password boxes. Once in the site, you can click on the “Application Form” link that is directly under the “eReporting” heading to start the process of registering yourself as a client with SGS. To find a protocol for your product, simply click on the “Protocol Review Log”. You can choose your type of product from the drop down menu in the search section entitled: Product.

The SGS Test Request Form (TRF) is also posted on the SGS website. The TRF must be submitted with all testing. Included in the form is a ‘Material Composition of Components’ row. Vendors are responsible to ensure the component makeup is what is stated on the form.

Artwork/ care labels/ law labels

� Artwork created by CPWM should not be printed until the final approval has been given by the buyer. � Artwork/ care labels/ law labels created by the vendor should not be printed until a passing test report is issued

by BV/ SGS and/ or a testing waiver form (TWF) has been issued by QA. � To ensure that BV/ SGS reviews your labels, please make sure to include them with the samples sent to BV/

SGS for testing. Please note that BV/ SGS will accept proofs of artwork/ care labels/ law labels. The labels do not need to be printed in order for BV/ SGS to review them.

Package Labeling

Overview

In an effort to help our customers gain accurate information regarding the products they are purchasing, we require that all merchandise meets Federal and State labeling regulations. To adhere to these regulations, vendors must provide accurate and complete information on packages (as to the identity and quantity of contents) so that the consumer can make informed comparison decisions.

Label Requirements

� Identity of product




� Name and address of manufacturer, packer or distributor. The connection of a distributor must be shown (such as “packed for”, “distributed by”).

� Net quantity of contents (expressed in terms of weight/mass, size, measure, numerical count or any combination thereof that is most appropriate). Net contents must be shown on the principal display panel of the product. Units of weight or measure are required to have both SI (metric) and inch-pound units. A declaration of the quantity must be in the lower 30% of the principal display panel, in a size depending upon the area of the principal display panel.

� Net quantity of servings, uses or applications included (FPLA items only. See below for more information)

Private Label Packaging

We have an established a package design system. All private label packaging (labels, product packaging, etc.) will be designed in-house by our Art Department, and an EPS artwork file will be provided to you for printing. Furthermore, an accurate color proof of every private label and package must be sent to Cost Plus for our approval before mass printing can proceed. (Send color proofs to Cost Plus, Inc., Attn. your Buyer, 200 4th St, Oakland CA 94607, USA). For further information and instructions, contact the buyer. To ensure that this happens, vendors should not proceed with the production of any private label packaging without receiving written approval from your Buyer. Please continue to utilize your Buyer as your main contact for all private label packaging initiatives. Please

note that vendors will be charged back for all costs associated with unapproved private label packaging.

NOTE: Some merchandise will require additional labeling. Most specific questions, products, and regulations can be addressed by visiting the following websites: � FPLA (there are four sections: 500-503):

• http://www.access.gpo.gov/nara/cfr/waisidx_02/16cfr500_02.html



• http://www.access.gpo.gov/nara/cfr/waisidx_02/16cfr503_02.html � The NIST "Packaging/Labeling Regulation (UPLR)" - http://ts.nist.gov/ts/htdocs/230/235/h130-02/packlab.pdf � International Association of Bedding & Furniture Law Officials (ABFLO) - http://www.abflo.org � California Measurement Standards - http://www.cdfa.ca.gov/measurement/ � Food and Beverage Vendors - http://www.fda.gov , http://www.usda.gov/wps/portal/usdahome � Conversion factors - http://www.fda.gov/ora/inspect_ref/iom/appendices/appendix4.html

LABELING - WEIGHTS AND MEASURES POLICY The laws regarding accuracy in labeling of Net Quantity Statements are far less tolerant and far more stringently enforced in the United States than in other countries. We are responsible to all Federal, state, county government agencies regarding all products we purchase and display in our stores. As our company is based in California, we use the very strict California standard of weights and measures for all of our stores. Regardless of weights and measures tolerances in your country (countries) of origin, including EU, we maintain a policy of 100% compliance with Federal, State and County regulations. Products must weigh, net of all packaging, at stated weight. There are no exceptions. Vendors will be issued an Expense Offset Fee for non-compliance (see section 6).

Policy regarding Weights and Measures infraction

We maintain a “Zero Tolerance” policy. Regardless of plus or minus “tolerances” in other countries, we expect to maintain 100% compliance with all Federal, State and County guidelines. There are no exceptions. We have instituted a new policy of aggressively examining and weighing all shipments as they arrive in our warehouse. All shipments will be weighed. Actual weights will be checked against the statement of net contents on the label using

It is the responsibility of the vendor to ensure their packaging complies with the requirements of applicable law. General label questions concerning U.S. regulations can be sent to [email protected]. Label reviews conducted by Cost Plus Management Services, Inc. does not constitute acceptance or confirm the accuracy and/or completeness of the product label or conformance with applicable laws or public authority,

all of which remains the responsibility of the vendor.




NIST Office of Weights and Measures standardized test procedures for calculating error. Standards for moisture loss, etc. are included in this calculation. Product found to be underweight (either at point of receipt or at a later date) will either be destroyed or re-labeled at the vendors’ expense (see section 6). Product will undergo multiple tests to confirm actual net weight.

Payment will not be made on any shipment of short-weight goods (unless product is re-labeled at our DC and the vendor has paid the associated claim in full). If the shipment was prepaid, that amount will be deducted from the next invoice. In addition, all costs (such as fines levied against us, loss of sales due to out-of-stock or short stock situations, labor for re-work, legal fees, etc.) associated with a weights and measure violation will be charged back

directly to the vendor.

What is the “Weights and Measures” agency?

Each county in each state in the US has an Office of Weights and Measures that has jurisdiction over any commodity that is weighed, measured, or counted. The offices are responsible for assuring the accuracy of weights and measures. This agency serves the people of each state by aggressively preserving and defending the measurement standards essential in providing the citizens a basis of value comparison and fair competition in the marketplace. What this means is that they aggressively monitor the weights of packages to make sure that the stated weight is what is in fact inside.

What triggers “enforcement”?

When Cost Plus Inc. has packages on the selling floor that are deemed underweight by an officer working for Weights and Measures, a violation can result. Depending on the number of violations and their severity, these citations can result in significant fines (beginning as high as $10,000 and increasing with frequency), and/or criminal prosecution and imprisonment.

What you, the vendor, must do to prevent mistakes in labeling weights and volume:

� Vendors must overfill packages to accommodate for any shrinkage that may occur in transit, in storage or while on the shelf in the stores.

� The net weight of the product must remain at or above stated net weight for the entire shelf life of the product. � Net weight (under US law) is the weight of an item less all packaging. � Our relationship with a non-compliant vendor will be reviewed and possible termination will result if immediate

steps are not taken to resolve the problem. � Vendors will be issued an Expense Offset Fee for non-compliance (see section 6).

FOOD & BEVERAGE

Best by Date – Food Labeling Requirements

In order to provide the freshest and highest quality food products, our stores and distribution centers must be able to read the expiration or "best by" date. We buy product based on full code sell through capability; therefore we will not pay full invoice price for goods that are shipped to us with a less than optimal shelf life. We are committed to checking each shipment upon receipt and expediting allocations to our stores based on the manufacturer's recommended “Best By” dates. Items that are received with less than optimal shelf life will either be refused or paid for based on the Food Declining Payment Scale. In order for us to use this system properly, vendors must provide the Manufacturer’s suggested shelf life for the product to their Buyer. All food items must have a “Best By” date expressed as “Best By” or similar wording followed by a date in month/day/year format. If using only month and year, month must be expressed in English (such as June/06). Please note that if the date is June '06, June 1st will be considered the expiration date, not June 30th. Vendors shipping seasonal items (Christmas, Easter, Valentines, and Halloween) and/or products with a shelf life of 2 years or longer are exempt from marking the item itself, but must have the “Best By” date on the case, inner, and/or outer carton.

The "Best By" date must be stamped or a sticker must be applied on each item and carton (including inner

and outer carton) regardless of other marking (manufacture date, lot codes, etc.) and must be IN ADDITION to any other codes required by law. No additional payment will be made for this "Best By" date labeling.




Merchandise without a clearly human readable “Best By” date marked will not be accepted, or alternatively, vendors will be charged all labor, materials, and administrative costs for application of a "Best By" sticker in our warehouse.

“Best By” Policy at a glance:

� “Best By” date must be applied on each item, inner pack, and master pack and are in addition to lot codes, dates of manufacture, etc. "Best By" dates may be applied using ink-jet, stamp or sticker.

� "Best By" dates listed on the master carton must match the inner carton/product. � Expiration date will be stated as "Best By" or “Best Before” and not "Expiration". � “Best By” date must be stated in month/day/year or if using only month and year, must be expressed in letters

and year (e.g., June/06). � For added clarity, the month must be in English and not in numbers. June or Jun, not 6 or 06. � Vendors will be charged for all costs if we need to label the items at the warehouse (see section 6). � Include the word “mixed” as well as a listing of all SKU's and "Best By" dates on pallet markings if pallet

contains multiple "Best By" dates. Separate items with different "Best By" dates on pallet with slip sheet. � Include the word “mixed” as well as a listing of all SKU's and "Best By" dates on pallet markings if pallet

contains multiple "Best By" dates and/or multiple SKUs. Separate items with different "Best By" dates on pallet with slip sheet.

Perishable Service / Perishable Freight

Merchandise which is susceptible to freezing during winter or melting during summer should be shipped in protective service. If the food and/or beverage item is temperature controlled, note on the bill of lading the acceptable temperature range that must be maintained for this product. Indicate "protect from freezing" or "protect from heat" (whichever applies) on your bill of lading and carton markings.

Bioterrorism Preparedness & Response Act of 2002

Vendors selling consumables (food items, candy, chewing gum, pet food, beverages, etc) must comply with all provisions of the Public Health Security and Bioterrorism Preparedness and Response Act of 2002, and any subsequent changes to that act. For further information, go the FDA’s website (http://www.fda.gov).

Carton / Case - Marking Requirements - The following requirements are acceptable markings for all food cases (inner and master cartons) � Bar code or UPC/EAN number � Item description � # of selling units in the case � “Best By” date (must be included on each individual item, inner carton & master carton) � SKU# and P.O.# (not mandatory but strongly encouraged)

Food Safety (FDA, GMP) Requirements All vendors must guarantee that no material or component delivered to us is adulterated, misbranded or has been processed, stored or transported under unsanitary conditions which would constitute a violation of Federal, State or Local food regulations. Pesticides used during the production of products must be approved by the environmental Protection Agency (EPA) and used in accordance with all U.S. Government regulations. For additional Product Specification and Quality Assurance Program information, including Organic Definitions and Ingredients Standards, all Organic and All Natural vendors must review the Private Label Food Information documents on our Vendor Relations website. Each shipment must be in compliance with all stated labeling specifications and USFDA nutritional requirements (unless exemption proof is provided). The vendor agrees to process, warehouse, and transport all raw materials under conditions that comply with current Good Manufacturing Practices. In the event that goods do not meet FDA requirements, the vendor will be responsible for either: � Assuming all costs for bringing goods into compliance (if possible). � Accepting a return of goods at the vendor's expense plus any additional penalties. � Approval of destruction of property (and payment of associated costs) if return is more costly than destruction.




Key Food Labeling Points Guideline - FDA

Below is a guideline of FDA regulations related to the labeling of food items. These guidelines are intended as a guide and are NOT complete. They have been provided for convenience and only represent highlights of all FDA requirements. To make sure products are in full compliance, please go to http://vm.cfsan.fda.gov/~dms/flg-toc.html. � Statement of identity: The name of the product must be IN ENGLISH on the Principal Display Panel (PDP),

the panel that the customer is most likely to see on the shelf (usually the front). This name should be a generic description of the product when a simple translation will not be meaningful. No “fanciful” names are allowed, unless the nature of the food is obvious. The lettering for this name must be at least ½ the size of the largest type on the panel. Please go to http://www.cfsan.fda.gov/~dms/flg-2.html for further details.

� The net quantity of the product and its placement on the package: Net quantity must appear in the bottom 30% of the PDP, in a size depending upon the area of the PDP. Net weight must show both metric and avoirdupois (U.S.). Both systems may use wt, fl, liq, dr, dia, pc, ea, and ct. The words “net mass”, “net weight”, “net”, or “net contents” are optional. Numerical values should be between 1 & 1000 (e.g., 500 g not 0.5kg, 750 ml not 0.75 L, etc.). Go to http://www.cfsan.fda.gov/~dms/flg-3.html for further details.

� The name and address of the manufacturer, packer, or distributor: The name, city, and ZIP code of the manufacturer, packer, or distributor must be on the label. The connection of a distributor must be shown (such as “distributed by”). This must be on the information panel below the ingredients. It must be contiguous with Nutritional Facts. When expressing the statement “imported by”, use the name, Cost Plus, Inc. Official logo art is available on our Vendor Relations website. Go to http://www.cfsan.fda.gov/~dms/flg-1.html for further details.

� Statement of ingredients: The statement of ingredients must be in English and cannot contain any colors listed as “E” colors. European colors must be translated into FD&C colors (for artificial) or listed by their common names. It is sufficient to list “artificial and/or natural flavors” as well as “spices”, but herbs must be listed by their common names. Ingredients must be in a typeface no smaller than 1/16” regardless of the size of the package. Any preservatives must be declared. Alcohol % must be declared even if used as flavoring. Please go to the following websites for further details:

• Comprehensive listing of colors and additives including banned substances and “E” numbers http://www.lactose.co.uk/milkallergy/numbersprint.html

• Color additives fact sheet - http://www.cfsan.fda.gov/~dms/cos-221.html

• Food Compliance Program, Imported Foods, Food and Color Additives - http://www.cfsan.fda.gov/~comm/cp09006.html

Nutritional Facts Panel (NFP): The Nutritional Facts Panel (NFP) is required for all food items with the exception of those who have obtained a vendor exemption from the FDA in the calendar year that the item is imported and make no nutritional claims. Proof of exemption should accompany the goods when they arrive in customs. The NFP may be printed on a sticker and applied to the product as long as the sticker adheres to the product under the intended storage conditions and will not fall off in transit or at the store level. The sticker must not cover any other pertinent material (address, country of origin, etc.). � Location: The NFP is to be located either on the side panel immediately to the right of the PDP as you face the

item on the shelf or on the back if there is not sufficient space on the side. NFP may not be placed on the bottom of the package unless there is not sufficient space for it on the side. The NFP must be located with the ingredient statement & manufacturer’s information. All 3 of these items must be contiguous without intervening material (bar codes, EAN, marketing, etc.) dividing them. The NFP should be placed inside a box with all black or one-color type printed on a white or neutral background. For exact requirements and FAQ’s regarding the NFP, go to: http://www.cfsan.fda.gov/~dms/flg-5-1.html AND http://www.cfsan.fda.gov/~dms/flg-5-2.html The NFP format requires minimum type sizes of 6 points and 8 points are required for various copy points. Almost any type may be used, if legible.

� Small Business Food Labeling Exemption - Under 21 CFR 101.9(j)(1), a business may be exempt from the requirement of including a NFP on its food packages. This exemption is based on the number of employees and the number of product units sold. This exemption deals only with the necessity of having the NFP, and has no effect on the mandatory labeling information. For more information, go to: http://www.cfsan.fda.gov/~dms/sbel.html. We encourage all vendors to display the NF panel.

� Nutritional Facts Serving Size - The FDA specifies what a “serving size” is. For a list, go to http://www.cfsan.fda.gov/~lrd/CF101-12.HTML .The vendor cannot decide what a serving size is. A snack is always 30 grams. Chocolate candy is always 40 grams. All foods are listed.




� Alcohol content labeling: If food products contain alcohol in an amount exceeding 1/2 of 1%, whether used as flavoring or as a liquid center, those products must be labeled as containing alcohol in the ingredients panel. In addition, a warning sticker on the front may be required. If a sticker is required, the buying office will advise. No warning label is required for food products containing alcohol not meant for consumption (e.g., brined olives or onions). Chocolate with liquid centers must carry a warning (illegal to sell the product to minors) sticker. Alcohol must be listed “% by weight” as well as “% by volume." The cost of the sticker is the responsibility of the vendor and is separate from all other labels.

Allergens – Food Labeling Requirements

All vendors must comply with all FALCPA (Food Allergen Labeling and Consumer Protection Act) requirements. The passage of FALCPA requires that food labeled on or after January 1, 2006, must declare the presence of a major food allergen in the ingredient list or via: � The word "Contains" followed by the name of the major food allergen (e.g., milk, wheat, or eggs); or a

parenthetical statement in the list of ingredients e.g., "albumin (egg)." � Major food allergens contained in spices, flavorings, additives, and colorings must be declared using plain

language. NOTE: This law became enforceable on January 1, 2006. Products manufactured and labeled after that date must be compliant. Food vendors must revise and print labels as needed. Old labels must be discarded after January 1, 2006 and will not be reimbursed. For more information on this law go to: http://www.cfsan.fda.gov/~dms/alrgact.html. The bill is intended to reduce consumers' confusion over which goods contain proteins from the eight most common foods causing allergies: milk, egg, fish, shellfish, tree nuts (such as almonds, pecans, and walnuts), wheat,

peanuts, and soybeans. Non-compliant imported product received at port after January 1, 2006 will not be accepted and may be subject to detention and/or destruction at the point of entry. Vendors will not receive payment for non-compliant product and may be additionally charged for loss of sales or other charges relating to the destruction of the product.




Food - Declining Payment Scale Below you will find our declining payment scale. For any product that falls in two ranges, the lower shelf life range will apply. The declining payment scale is designed to be applied to the expected agreed upon remaining shelf life at time of receipt. Imported products are not judged on total shelf life. Contact your Buyer with any questions.

Code Status for items with >24 months Shelf

Life remaining at time of receipt

Payment Percent Comment

<2 months short upon receipt 100% Optimal

2 - 5 months short upon receipt 90% Buyer Can Refuse





>18 months short upon receipt or less than 1 year of shelf life

0% Buyer Can Refuse

Code Status for items with 12 - 24 months

Shelf Life remaining at time of receipt


<2 months short upon receipt 100% Optimal






>9 months short upon receipt 0% Buyer Can Refuse

Code Status for items with 9 - 12 months



<1 month short upon receipt 100% Optimal





Code Status for items with 6 - 9 months Shelf



<3 weeks short upon receipt 100% Optimal

3 - 8 weeks short upon receipt 75% Buyer Can Refuse




Code Status for items with 5 - 6 months Shelf



<2 weeks short upon receipt 100% Optimal



>12 weeks short upon receipt 0% Buyer Can Refuse

Code Status for items with 16 - 20 weeks



<1 week short upon receipt 100% Optimal



>8 weeks short upon receipt 0% Buyer Can Refuse

Code Status for items with 0 - 16 weeks Shelf



<1 week short upon receipt 100% Optimal

>1 week short upon receipt 0% Buyer Can Refuse




Sample Policy – Food and Beverage

We do not pay for samples or pay for the shipment costs of samples. In compliance with the Bioterrorism Act, all food and beverage sample shipments must strictly adhere to the below regulations. Any food / beverage samples that do not adhere to the below regulations will be immediately disposed of. All costs (sorting, destruction, etc.) associated with unapproved samples will be charged back to the vendor. Vendors, brokers or agents must have buyer or assistant buyer approval for samples either by phone or in writing (e-mail) prior to shipment. To obtain shipment approval, the Food/Wine Sample Form must be completed and

submitted to your Buyer prior to shipment. Form is available on our Vendor Relations website. The following information is required on the form:

Vendor Detail

� Date shipped � Invoice/packing slip number (or an arbitrary assigned number if there is no invoice) � Buyer/Assistant Buyer Name, Department � Vendor Name (and factory name if different) � Vendor FDA Bio-terror Registration number (mandatory) � Agent or Broker name/location (if applicable) � Sender Name, Contact information (including email address) � Carrier (UPS, FED EX, DHL, Hand delivered only). Samples sent through any other service will be disposed of

as they cannot be tracked. If hand-carried, include name of delivery person to CPMS offices. � Country of origin (if different than address)

Product Detail

� Product Description for each item � Net wt /Volume each item � Vendor’s Style # � SKU # (if available) � FOB / Cost (US$) � Country of Origin � Comments section if necessary

NOTES:

� Documentation submitted with sample merchandise must also include the Buyer name and department, and must be marked as “SAMPLE”. Samples received without the above information will be disposed of. Please refer to section 3 for invoice requirements related to Customs clearance and other government agencies.

�� All samples must be individually stickered or tagged with Vendor Style #, Invoice # (see above), cost, vendor/contact information, and SKU# (if available). Stickers or tags may be hand-written or printed.

�� Arriving samples must clearly show approving Buyer/Assistant Buyer name, Department name or number, the word “Sample”, and product description (not required, but strongly encouraged) on the outside of the carton.

�� After receiving approval from your Buyer or Assistant Buyer, samples should be sent to:

Name of Buyer/Assistant Buyer

Department (Candy, Cookies, Savories, Snacks, Drinks, or Beverage (wine/beer/spirits)

Cost Plus Management Services, Inc.

200 Fourth Street

Oakland, CA 94607

It is the vendor's responsibility to keep records of all food sample shipments for 2 years.




Miscellaneous

PBDE (poly-brominated diphenyl ether)

Over the past few years, California and many other states enacted legislation banning PBDE (poly-brominated diphenyl ether) chemical fire retardants. These retardants are specifically used in the manufacture of foam, textiles, and electronics. Manufacturers of applicable products are required to have on file documentation confirming adherence to this legislation. Regardless if the material is produced within your own facility or purchased from an outside supplier. This documentation must be made available to Cost Plus World Market upon request. Please direct your questions to [email protected]

FORMALDEHYDE EMISSIONS FROM COMPOSITE WOOD PRODUCTS

The California Air Resources Board (CARB) has introduced a measure to reduce Formaldehyde Emissions from Composite Wood Products. If you do not manufacture items with composite wood products you may disregard

this section.

� Beginning January 1, 2009 you cannot purchase and or manufacture composite wood products that do not comply with the new standards. Standards can be found at: http://www.arb.ca.gov/toxics/compwood/compwood.htm

� Effective April 1, 2009, you cannot ship non-compliant composite wood products. � All compliant product must have affixed (to master carton and finished good) our approved CARB sticker

found on our Vendor Relations website. � Vendors must also include a statement of compliance on bills of lading or invoices, which serves as a record of

the sale of compliant products for downstream customers. � Vendor will be issued an Expense Offset Fee for non-compliance (See section 6).

3. Import Logistics



3. IMPORT LOGISTICS

CONTAINER LOADING

Unless otherwise specified in writing, all imported items must be loaded as follows:

� Floor loaded only. Pallets are not allowed. � Separate and group each PO within any given container. (Do not mix POs throughout a container). No PO shall

be loaded in multiple containers without approval from [email protected]. � Cartons shall be loaded in a straight column whenever possible. Attention to up arrow marking on the carton is

critical in preserving the carton stacking strength. � Never step on the lower layers of product to load the upper layer. � All voids along the length side of the container and the doors must be blocked/braced to prevent load shifting

and load stability during shipping and upon receiving. Use plywood, air bags or strong void cartons as appropriate. Do not allow blocking or product to prevent door from opening.

� Fragile items out of Europe may be palletized with prior approval from [email protected]. Palletized loads must be on 48in x 40in 2-way or 4-way GMA pallets grade B lumber or better. See section 4 for our Pallet Policy. Solid wooden pallets must be heat treated or fumigated with Methyl Bromide. Contact [email protected] with any questions.

� All containers arriving by vessel into the U.S. on or after October 15, 2008 are required by law to be sealed with a seal meeting the ISO/PAS 17712 standard. While this has always been a requirement under our C-TPAT Security Program and our consolidators and carriers already use ISO/PAS 17712 standard container seals, it is absolutely critical that any and all vendors who load containers directly at their factories use only ISO/PAS 17712 standard seals. Penalties will be assessed on any container that arrives on or after October 15, 2008 that does not meet this new requirement. For more information on this regulation and the types of seals that are compliant with this regulation see http://apl.com/security/html/seals.html. You can contact the local office of our approved consolidator or [email protected] with questions.

� All wooden and/or natural fiber furniture shipments originating from India and Indonesia during the rainy season (typically June-October and November-February for South East Asia) must utilize the proper desiccant/humidity control to avoid mold and moisture issues within the container. The recommended desiccant product is ABSORGEL produced by Absortech International. Contact [email protected] for further information.

FREIGHT CONSOLIDATION

We require that all P.O.'s be booked through and/or delivered to our Freight Consolidation facilities. Any vendor that does not book their P.O. through our nominated consolidator will be subject to charge-backs. For information regarding our nominated consolidator in each country, please see pages 3-6 - 3-9.

Advance Booking

All Freight Consolidators require advance-booking notice 10 or more days prior to the ship date stated on the Purchase Order. If the 10th day falls on a Saturday or Sunday, vendors are required to book the Friday before. Vendors that book less than 10 days prior to the ship date stated on the P.O. will be subject to charge-backs (see section 6). At the time of booking, the vendor must provide the following to the consolidator: � P.O. number(s) & SKU number(s) � Ship pack and item quantities for each SKU � Number of cartons per SKU � Count of total booked cartons � Weight per SKU (kg) / Volume per SKU (cbm) � Total booked cubic meters / kilograms � Destination DC / Confirmation of carton marking by destination DC � Special equipment requirements (e.g., reefer). Temperature setting must be specified at the time of booking. � Effective 4/15/09, Passing BV test report or a QA Testing Waiver Form (TWF) for each sku.

Email is the preferred method of

communication. Import Logistics

questions should be sent to

[email protected]. Customs questions

should be sent to [email protected]

3. Import Logistics



ISF Compliance / Shipping Orders in GT Nexus

U.S. Customs & Border Protection Importer Security Filing (ISF) Compliance: U.S. Customs requires all importers to file an Importer Security Filing (ISF) consisting of 10 unique data elements for each and every import shipment at least 24 hours before the cargo is laden aboard a vessel destined to the U.S. CPWM requires vendors’ assistance to supply the necessary data for ISF regulations through the GT Nexus Shipping Order process. � Vendors are required to create and submit a Shipping Order (SO) in GT Nexus at least 10 or more days prior to

PO Ship Date. If the 10th day falls on a Saturday or Sunday, vendors are required to submit SO the Friday before. Vendors that submit SO in GT Nexus less than 10 days prior to the ship date stated on the P.O., or provide inaccurate information in the SO, will be issued an Expense Offset Fee for non-compliance (See section 6). These chargeback’s will not be waived.

� The Shipping Order User Guide and the Shipping Order Training Video can be found on our Vendor Relations website.

� In addition to vendor charge-backs, any fines or penalties assessed to CPWM from U.S. Customs due to vendor failure to submit an SO or incorrect filing of SO data will be processed as a claim to the vendor. These claims cannot be waived and will be deducted from the vendor’s future payment. Potential U.S. Customs fines and

penalties could be in excess of $5000.

Factory Loading

All vendors (including those that are factory loading) must book through our nominated Freight

Consolidator. For factory loaded containers, vendors must meet our minimum stuffing requirements. Otherwise, vendors must deliver the goods for consolidation. We do not allow the use of 20’ containers. � 40’ regular container – minimum loading of 55 cbm’s: Target Goal: 61 cbm’s � 40’ high cube container – minimum loading of 66 cbm’s: Target Goal: 71 cbm’s � 45’ high cube container – minimum loading of 73 cbm’s: Target Goal: 77 cbm’s For factory loaded containers, vendors are responsible for ensuring the container is clean and free of damage prior to loading.

Air Shipments

Vendors must get authorization in writing from their Buyer for all air shipments. Once authorized, the shipment must be booked through one of our nominated airfreight forwarders. All costs for unauthorized and mis-booked air shipments will be at the vendor's expense. Similarly, all prepaid (vendor’s expense) air shipments must be booked through one of our nominated airfreight forwarders. Please contact [email protected] for the nominated air freight forwarder in a specific country. This may differ from the designated consolidator.

DOCUMENTATION

All vendors must submit documentation to the consolidator at least 72 hours prior to the vessel sailing. All documentation should be sent to the consolidator and should NOT be mailed or faxed to us. Any vendor that does

not submit all required documents on time will have their cargo held at origin until the documents are

completed and received. Any costs associated with this will be charged back to the vendor (including applicable Expense Offset Fees – see section 6). Vendors must deliver freight, turn over the complete documentation and pay all of the applicable origin charges in order to receive the forwarder’s cargo receipt (FCR). The Consolidator will send a scanned document set to us. Preparation of payments will begin upon receipt of the scanned document set. To obtain payment, vendors must submit the following documentation to the Freight Consolidator for each discrete shipment: � An accurate and complete commercial invoice. See A/P section as well as next two pages. � Packing list and any other applicable document (certificate of origin, fumigation certificate, original visa)

� Passing Quality Assurance test result or CPWM QA Testing Waiver Forms are no longer required to be

submitted in your shipment packet effective April 15, 2009. Instead, effective April 15, 2009, a passing QA test report from Bureau Veritas (BV) or a CPWM QA Testing Waiver Form must be submitted at the time of booking. Shipment packets submitted prior to April 15, 2009 must include a passing QA test report from BV or

3. Import Logistics



a CPWM QA Testing Waiver Form (along with other applicable export/booking documentation referenced in this section). This applies to all SKU's and all shipments, excluding food and beverage. Also, this policy does not apply to transit tests. See section 2 for more details; including applicable Expense Offset Fees for non-compliance.

� General Certification of Conformity (GCOC) – A certification, based on a reasonable testing program is required for each shipment of adult and children’s products that are subject to a consumer product safety rule, ban, standard or regulation enforceable by the CPSC including furniture, rugs, candles with metal wicks clothing and cleaning products. As a domestic vendor, you must be able to supply Cost Plus and/or the CPSC with a General Certification of Conformity upon request for all covered products manufactured on or after November 12, 2008. The form is located on our Vendor Relations website under Forms.

� Third Party Test Certificate - Toys and children’s products must have a Third Party Test Certificate issued by a CPSIA recognized independent third party test lab for lead in paint and other surface coatings and small parts. Lead in substrate and phthalates currently do not require a Third Party Test Certificate. However, must be in compliance with all applicable rules and bans. Therefore, all Toys and children’s product must be tested to the Cost Plus Toy and Children’s Product protocols.

� Plant and Plant Product Declaration Form: For products covered under the Harmonized Tariff Schedule (HTS) described in the following table, a completed Plant and Plant Product Declaration Form must be included in your documentation to the consolidator. This form can be downloaded from the “Forms / Templates” section of our Vendor Relations website. Vendors will be issued an Expense-Offset Fee for non-compliance. There are no exceptions. Contact [email protected] with questions. Please follow the Phase-In schedule described in the table for the particular plant product to be imported:

PHASE NUMBER IMPORT DATE COVERED HARMONIZED TARIFF SCHEDULE

Phase II

(no change) April 1, 2009

HTS Chapters:

Ch. 44 Headings (Wood & Articles of Wood)

4401 (fuel wood) 4403 (wood in the rough) 4404 (hoopwood; poles, piles, stakes) 4406 (railway or tramway sleepers) 4407 (wood sawn or chipped lengthwise) 4408 (sheets for veneering) 4409 (wood continuously shaped) 4417 (tools, tool handles, broom handles) 4418 (builders’ joinery and carpentry of wood)

Phase III October 1, 2009

HTS Chapters:


4402 (wood charcoal) 4412 (plywood, veneered panels, except 4412.99.06 and 4412.99.57) 4414 (wooden frames) 4419 (tableware & kitchenware, of wood) 4420 (wood marquetry; caskets; statuettes)

Plus Phase II

Phase IV

April 1, 2010 HTS Chapters:


4421 (other articles of wood)

Ch. 66 Headings (Umbrellas, Walking

Sticks, Riding Crops)

6602 (walking sticks, whips, crops)*

Ch. 82 Headings (Tools, Implements)

8201 (hand tools)*

Ch. 92 Headings (Musical Instruments)

9201 (pianos)*

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9202 (other stringed instruments)*

Ch. 93 Headings (Arms and

Ammunition)

9302 (revolvers and pistols)* 9305.10.20 (parts and accessories for revolvers and pistols)*

Ch. 94 Headings (Furniture, etc.)

9401.69 (seats with wood frames)

Ch. 95 Headings (Toys, Games, &

Sporting Equipment)

9504.20 (articles and accessories for billiards)*

Ch. 97 Headings (Works of Art)

9703 (sculptures) *

Plus Phases II and III

Packing List

Packing lists must be attached to the outside of the lead carton. The packing list must include: P.O. number and related SKU number(s) Total net and gross weights and net and gross weights for each line item Total number of cartons and total number of cartons for each line item

Bill of Lading (BL)

Preparation of BL documentation is the responsibility of our nominated consolidator in each origin.

Invoice Requirements

� See section 5 (A/P) for general invoice requirements. See next two pages for more detailed invoice

requirements.

Invoice- Special Notes: � Invoice and packing list requirements apply to shipments of samples, with the exception of the listing of P.O. � Invoice and packing list requirements also apply to items that are “free of charge”. A dollar value must be

assigned to any replacement items even if we do not pay for such items. � Textile declarations were no longer required by US Customs & Border Protection as of October 2005.

However, a vendor must still indicate the fiber content of a textile article on the commercial invoice. Please note the general invoice requirements listed above, specifically “complete and precise item description.”

� Invoices for sets of items must have the individual items listed, complete with an accurate item description, net & gross weights, and any other pertinent information required to clear the individual item through US Customs and any other related government agency.

Invoice - Information Required for Spare Parts/Hardware All spare parts, spare hardware and extra instruction sheets MUST be itemized on the vendor’s invoice. In addition to the types of specific descriptions shown below, the following information must be included for each item: � Country of origin � Manufacturer’s name and physical address of factory � Number of units (include net and gross weights) � Dollar value: show as “no charge” but include actual value along with item description

Invoice – Furniture Parts Spare furniture parts must be itemized using descriptions such as “wooden chair legs,” “wooden chair seats,” “wooden legs for coffee table,” “wooden desk drawer,” “iron table leg,” etc.

Invoice – Instruction Sheet(s) Indicate either a single sheet, or the number of sheets / pages, if the instructions are on printed on multiple sheets.

3. Import Logistics



Invoice – Hardware packet � Include material, such as iron, aluminum, copper, etc. � Itemize the exact type and number of hardware items being shipped, such as bolts, caps, washers, screws, nuts,

glue, locks, staples, handles, drawer slides, dowels, drawer pulls, Allen wrenches, nails, keys, hinges, etc.

Invoice - USFDA (United States Food & Drug Administration)

� In regards to our merchandise, the FDA governs all food consumed by humans and animals, as well as food-related items (e.g. ceramics and glassware) and medical devices (e.g. massagers, sunglasses).

� As noted above, each commercial invoice must indicate the actual manufacturer’s name and address. This information is even more critical for items that fall under the jurisdiction of the FDA.

Invoice - USDA (United States Department of Agriculture)

� The USDA is interested in knowing about the importation of plant materials (e.g. bamboo poles) and some animal products that are food (e.g. meat, poultry, and eggs). Genus and species names will be required for determination of admissibility into the United States. In addition, it is required that the genus and species of each plant material be listed on the commercial invoice.

� Vendors shipping merchandise that is made in or shipped from China or Hong Kong must declare one of the following if solid wood packing materials are used, declare that the wood was treated and certified to be free from pests -OR- no solid wood packing materials were used.

� The USDA revised its import regulation on wood packaging materials on September 16, 2005. The new regulation requires that regulated wood packaging materials used in international trade be treated to kill harmful insects that may be present. All vendors that use such wood packaging materials must ensure that they are properly marked according to the International Plant Protection Convention standard ISPM #15. For more information, please visit: http://www.customs.gov/xp/cgov/import/commercial_enforcement/wpm/.

Invoice –USFWS (United States Fish & Wildlife Service)

� The USFWS is interested in the importation of animals and products of animals (e.g. seashells, bone, horn, etc.) that are not food related. Common and scientific names (Latin genus and species) are required for determination of admissibility into the United States. In addition to the invoice requirements for Customs clearance listed above, it is required that the common and scientific (Latin genus and species) of each animal material be listed on the commercial invoice.

Invoice - Food & Other FDA Regulated Products Each shipment must comply with all stated label specifications and USFDA nutritional requirements (unless exemption proof is provided). Vendors must agree to process, warehouse, and transport all raw materials under conditions that comply with current Good Manufacturing Practices. In the event that goods do not meet FDA requirements, vendors are responsible for assuming all costs for bringing goods into compliance, accepting a return of goods at the vendor's expense, or destroying the goods under Customs and / or FDA supervision.

Invoice Requirements – Food General

� Must be in English, or have an English translation attached � Cost Plus Management Services, Inc. name and address (200 Fourth Street, Oakland, CA 94607) � Cost Plus Inc.’s distribution center and address (Stockton, CA or Windsor, VA) � Cost Plus Management Services, Inc. P.O. number and SKU number(s) � Terms of sale � Number of individual units of each SKU � Unit cost and extended cost � Unit of currency

For Each SKU

� Country of origin � Shipper’s name and address � If food or beverage - Shipper’s FDA Bioterrorism registration number -

http://www.fda.gov/oc/bioterrorism/bioact.html

3. Import Logistics



� Actual manufacturer’s name and physical address � If food or beverage - Actual manufacturer’s FDA Bioterrorism registration number -

http://www.fda.gov/oc/bioterrorism/bioact.html � Complete, precise, common name description � Net measure (net weight, net volume, etc.) � Material (and shape) of immediate container (e.g. “plastic bag,” ”round glass jar”) � Material (and shape) of outer container (e.g. “paper box”) � FDA product code - http://www.accessdata.fda.gov/SCRIPTS/ORA/PCB/PCB.HTM � If food or beverage - FCE number, if applicable - http://www.cfsan.fda.gov/~comm/lacf-s1.html � If food or beverage - SID number, if applicable - http://www.cfsan.fda.gov/~comm/lacf-s1.html � If food or beverage - Container dimensions as reported on SID filing, if applicable -

http://www.cfsan.fda.gov/~comm/lacf-apa.html

Packing List Requirements

� Cost Plus Management Services, Inc. P.O. and SKU number(s) � Net and gross weight for each line item � Total net and gross weight � Number of cartons for each line item � Total number of cartons

GSP Eligibility

Merchandise imported from beneficiary countries may be eligible for favorable duty treatment under the U.S. Government's GSP program. In order to meet GSP eligibility requirements, at least 35% of the item's content and manufacture must derive from the exporting country. For a list of the current countries that are eligible for GSP, please consult General Note 4 of the Harmonized Tariff Schedule of the U.S. or email [email protected].

GSP VERIFICATION OPTIONS

Include on the invoice the following (or similar) language. This language must be included with all other export documents. � "The merchandise covered by this commercial invoice # ________, dated ______ is wholly the growth,

product, or manufacture of __________{country of origin}. Additionally, this merchandise was not produced and/or manufactured using forced, indentured, prison or child labor", OR

� Include the GSP Eligibility form with the export documents. This form is located on the page at www.worldmarket.com or can be obtained by sending an email to [email protected].

By submitting the GSP verification, the vendor also agrees to the following:

In the event it becomes necessary to submit evidence supporting a GSP claim, the vendor must provide us, within a reasonable period of time, all documents that confirm the merchandise is wholly the growth, product, or manufacture of the stated country. These documents may include raw material purchases, proof of factory labor, financial records documenting manufacturing overhead, quality assurance reports, and health, safety, and origin certificates prepared by government officials in said country.

NOTE: Transshipments are NOT allowed on imports to Cost Plus Inc., or any of its subsidiaries.

Fumigation Policy

� All merchandise made with natural fiber and/or solid wood must be fumigated before shipping. � All merchandise (including samples) packed in solid wood packaging must be heat treated or fumigated in

compliance with APHIS guidelines. Go to http://www.aphis.com for more information. � All merchandise eligible for fumigation must be fumigated prior to packaging the product. � All merchandise such as mats, rugs, wicker/bamboo baskets, placemats/runners must be packed after

completely dried to prevent mold. � All merchandise that is composed of solid wood with bark and is not kiln dried must be fumigated. � For further information, please refer to the APHIS website: http://www.aphis.usda.gov/ppq/wpm/import.html. NOTE: We will detain and fumigate any shipments, at the vendor's expense, where evidence of insects or non-indigenous organisms is found.

3. Import Logistics



SECURITY STANDARDS FOR VENDORS

Cost Plus Management Services, Inc. is a proud participant in U.S. Customs’ new security initiative, “C-TPAT” (Customs-Trade Partnership Against Terrorism). As a member of this program, we are committed to monitor, establish, and improve security procedures throughout the supply chain. Accordingly, we are required to assess the security standards of our vendors’ overseas facilities that produce and/or ship product to CPMS.

Security Evaluation

To assess the security standards of our vendors’ overseas facilities, all import vendors are required to complete a CPMS Security Questionnaire. Vendors will be issued an Expense Offset Fee for non-compliance (see section 6). We have developed an online platform where vendors can complete and submit the questionnaire. The CPMS Security Questionnaire must be completed online. Once the online questionnaire has been completed by the vendor the results can be evaluated by CPMS. All that is required to access and complete the new Security Questionnaire is an internet connection and a web browser. It can be accessed via the following web link: http://vovici.com/wsb.dll/s/8674g3cc57 Simply click on the link above or copy and paste it into the address box of your web browser. All questions must be answered to successfully submit a completed questionnaire. Please note that there is an option to print out the entire questionnaire for those who need to take time to go through the questions in detail. You can then return to the original link and submit the answers online. Should you have any questions regarding this new procedure or CPMS’s C-TPAT security program please contact our C-TPAT department at [email protected].

We will work with vendors on an ongoing basis to evaluate security programs, and to develop mutually acceptable strategies for improving both facility and operational security. We require vendors’ cooperation in conducting site inspections and security evaluations.

IMPORT ROUTING GUIDE

Overview

This guide supersedes previous routing guides and routing instructions made by your Buyer either verbally or written on Purchase Orders. If the correct origin port is not listed, please request routing directly from our

Import Logistics Department ([email protected]) prior to arranging shipping. +

Country of Origin Details

Country Origin Port Nominated

Consolidator

Contact

Australia Brisbane Agility Logistics Agility Logistics Pty Ltd 175 Eagle Farm Road, Pinkenba QLD 4008 Tel: 61 7 3291 8600 Fax: 61 7 3291 8650 Contact: Carol Phipps / John Bleach E-mail: [email protected] E-mail: [email protected]

Australia Melbourne Agility Logistics Agility Logistics Pty Ltd 28-32 Sky Rd, Tullamarine Tel: 61 3 9339 0888 Fax: 61 3 9339 0894 Contact: Karen Lewis E-mail: [email protected]

Australia Sydney Agility Logistics Agility Logistics Pty Ltd 4 Military Road, Matrivlle NSW Sydney Australia Tel: 02 9695 8050 Fax: 02 9695 8088 Contact: Jake Zingapan Email: [email protected]

3. Import Logistics




Consolidator

Contact

Belgium Antwerp UTi Deutschland GmbH UTi Deutschland GmbH Hamburger Strasse 181, 22083 Hamburg, Germany Tel: 49 (0) 40 368001-359 Fax: 49 (0) 40 368001-198 Nina Sach s [email protected]

China * Air Only * Beijing Tianjin Dalian

* Air Only *

Agility Logistics Shanghai Ltd

Agility Logistics Shanghai Ltd. (Beijing Office) 4th Floor Customs Building #10 Tianzhu Industry Zone 101312 Beijing P.R.C. Tel: 86 10 80487889 Fax: 86 10 80487485 Contact: Bruce Wang & Sarah Zhan E-mail: [email protected] [email protected]

China Dalian DAMCO DAMCO China Suppy Chain Management Team 1-3 Floor, D3 Tianfu Software Park Chengdu, China 610041 Tel: 028-61552000-5626 Fax: 028-61552429 Claire Chen Email: [email protected]

China Fuzhou DAMCO DAMCO China Supply Chain Management Team 1-3 Floor, D3 Tianfu Software Park Chengdu, China 610041 T: 028-61552000-5633 F: 592-8126983 Sealy Xie Email: [email protected]

China * Air Only * So. China: Hong Kong Shenzhen Yantian * Air Only *

Agility Logistics Ltd Agility Logistics Ltd 19/F, Broadway Centre, 93 Kwai Fuk Road, Kwai Chung, N.T., Hong Kong Tel: 852 2211 8888 Fax: 852 2333 9924 Contact: Irene Chan E-mail: [email protected]

China Nanjing DAMCO DAMCO China Supply Chain Management Team 1-3 Floor, D3 Tianfu Software Park Chengdu, China 610041 T: 028-61552000-5633 F: 592-8126983 Sealy Xie Email: [email protected]

China Ningbo DAMCO DAMCO China Supply Chain Management Team 1-3 Floor, D3 Tianfu Software Park Chengdu, China 610041 Phone:028-61552000-5103 Fax:86-53283104676 Zoe Huang Email: [email protected]

China Qingdao DAMCO DAMCO China Supply Chain Management Team 1-3 Floor, D3 Tianfu Software Park Chengdu, China 610041 Tel: 028-61552000-5626 Fax: 028-61552429 Claire Chen Email: [email protected]

China Shanghai

DAMCO DAMCO China Supply Chain Management Team 1-3 Floor, D3 Tianfu Software Park Chengdu, China 610041 Phone:28 61552000-5419 Fax: 21 23061074 Steven Li Email: [email protected]

3. Import Logistics




Consolidator

Contact

China * Air Only *

Shanghai

* Air Only *

Agility Logistics Shanghai Ltd

Agility logistics Shanghai Ltd. Room 2010, 20F , Shanghai Mark 2299 Yan An Road (West) Shanghai 200336, China Tel: 86 21 61168669 Fax: 86 21 62363303 Contact: Kevin Gao E-mail: [email protected]

China Xiamen DAMCO DAMCO China Supply Chain Management Team 1-3 Floor, D3 Tianfu Software Park Chengdu, China 610041 T: 028-61552000-5633 F: 592-8126983 Sealy Xie Email: [email protected]

China Xingang / Tianjin

DAMCO DAMCO China Supply Chain Management Team 1-3 Floor, D3 Tianfu Software Park Chengdu, China 610041 Tel: 028-61552000-5626 Fax: 028-61552429 Claire Chen Email: [email protected]

China Yantian/ Chiwan/ Shenzhen /Guangzhou

DAMCO DAMCO China Supply Chain Management Team 1-3 Floor, D3 Tianfu Software Park Chengdu, China 610041 Phone:28 61552000-5087 Fax:28 61552432 Rita Qian Email:[email protected]

Czech Republic All Ports UTi Deutschland GmbH UTi Deutschland GmbH Hamburger Strasse 181, 22083 Hamburg, Germany Tel: 49 (0) 40 368001-359 Fax: 49 (0) 40 368001-198 Nina Sach s [email protected]

Egypt Alexandria DAMCO DAMCO Egypt Ltd. City Stars, Star Capital A2, 13th floor Cairo, Egypt Tel: +20 24801296 Fax: +20 224801022 Yasser Ibrahim [email protected]

El Salvador All Ports DAMCO DAMCO El Salvador 81 Avenida Norte entre 5a y 7a Calle Poniente San Salvador, El Salvador. Tel: +503 25270240 Fax: +503 25270249 Rodrigo Posada [email protected]

Europe: Northern and Eastern Europe (if not otherwise specified)

All Ports UTi Deutschland GmbH UTi Deutschland GmbH Hamburger Strasse 181, 22083 Hamburg, Germany Tel: 49 (0) 40 368001-359 Fax: 49 (0) 40 368001-198 Nina Sach s [email protected]

France All Ports UTi UTI - France 55 Route du Pont VI, Parc d’Activites du Pont VI, Postal Box: 5128 76600 Le Havre Katy Liard [email protected] ; Tel : 33235.26.27.94 , Fax : 33235.26.29.64

Germany Bremen UTi Deutschland GmbH UTi Deutschland GmbH Hamburger Strasse 181, 22083 Hamburg, Germany Tel: 49 (0) 40 368001-359 Fax: 49 (0) 40 368001-198 Nina Sach s [email protected]

Ghana Tema DAMCO DAMCO Ghana, Ltd. Obourwe Building, Torman Road. PO Box 8800, Comm. 7 Tema Ghana Tel: (233) 22 206740 / 41 / 42 / 43, Fax (233) 22 204114 / 210921 Jesse Edem Amedormey [email protected]

3. Import Logistics




Consolidator

Contact

Greece All UTi c/o Seagull S.A. SEAGULL S.A. 7,Karatasou str 546 26 Thessaloniki - Greece Tel 0030-2310-547615/617 Fax 0030-2310-547630 SOFIA STAFILARAKI email : [email protected]

Guatemala All DAMCO DAMCO Guatemala S.A. 902 Edificio Atlanti, 13 Calle 3-40 Zona 10, Guatemala City Guatemala, Tel: +502 22294301 Fax: +502 23632660 Lucia Choc [email protected]

Honduras Puerto Cortes DAMCO DAMCO Honduras 8 Piso Edificio Chalet 3a Avenida 1 Calle San Pedro Sula Honduras Tel: +504 (508) 2060 Fax: +504 (550) 2264 Angie Bulnes [email protected]

Hong Kong Hong Kong DAMCO Damco China Limited Shenzhen Branch 32/F, Shun Hing Square, Di Wang Commercial Centre, 5002 Shen Nan Dong Road, 518008 Shenzhen, China. Phone: +86 755 25021000 -5202 (Emily-Booking and Cargo planning) +86 755 25021000 -5219 (Wendy-FCR and documentation) Fax: +86 755 25022140 Email: [email protected]

India Mumbai (Bombay) / Nhava Sheva

Agility Logistics Pvt. Ltd.

Agility Logistics PVT Ltd 501/502 , 5th Floor Polaris, Off marol Maroshi Road Marol, Andheri (East) - 400059 Mumbai, India Tel +91.22.39891818 Dir + 91.22.30904731 Mob +9321327236 Fax +91.22.30904747 Contact: Ms. Kuntal Singh E-mail : [email protected]

India Cochin Agility Logistics Pvt. Ltd.

Agility Logistics PVT Ltd 24 / 156 , 6TH Cross Road Willingdon Island, Cochin -682003 Tel: 91-484 3114947 / 48 / 50 /51 Fax: 91-484 2668 806 Contact: BHAVIKA. VED E-mail : [email protected]

India Jaipur Agility Logistics Pvt. Ltd.

Agility Logistics PVT Ltd 2, Manoram, Ambeshwar colony, opp. K.S Ford Showroom, New Sanganer Road Jaipur 302012 Tel: 91-141 3142902/3142508 Fax: 91-141 2291594 Contac: Sita Ram / Shagun katyal (Jaipur) Email: [email protected] [email protected]

India Jodhpur Agility Logistics Pvt. Ltd.

Agility Logistics PVT Ltd 5th Ground Floor, Mudit Mansion Pal Link Road, Jodhpur India 342 003 Tel: 91-291 3204152/ 3204153/ 3204425 Fax: 91-291 2714992 Contact: Narendra Singh Charan Devendra Singh Chouhan Email: [email protected] [email protected]

India Kolkata / Haldia


Agility Logistics PVT Ltd Millenium City, IT Park, Tower II, 9 Floor, Unit 9D, Block – DN62, Sector V, Salt Lake, Kolkat – 700 091, India. Tel: +91 33 3989 1818 Fax: +91 33 30932393 Contact: Swapan Mukherjee ( Mob: 9339003837 Email: [email protected]

3. Import Logistics




Consolidator

Contact

India Chennai (Madras)


Agility Logistics PVT Ltd NO 10-12, THE OVAL, 7TH FLOOR VENKATNARAYANA ROAD T.NAGAR, CHENNAI 600 017 Tel: 044 30963136 Fax : 044 30963198 Contact: Nithya Mobile : 093817 33306 Email : [email protected] [email protected]

India ACTL Faridabad, New Delhi


Agility Logistics PVT Ltd. ENKAY CENTRE, A-BLOCK, 1ST FLOOR, VANIJYA NIKUNJ, UDYOG VIHAR, PHASE-V, GURGAON, HARYANA-122016 Tel: +91-124-3989181 Fax: +91-124-3967699 Contacts: Rajendra Gagneja & Sukhram Pal E-mail: [email protected] [email protected]

Indonesia Denpasar / Bali (Air Only)

PT. Agility International

PT. Agility International Indonesia JL Bung Tomo III 9A, Gatut Sabroto Barat Denpasar-Bali 80117 Tel: 62 361 418545 Fax: 62 361 418731 Contacts: Donny Wibawa & Sonny Gunadi E-mail: [email protected] [email protected]

Indonesia Jakarta Agility Logistics PT. Agility International Indonesia Jalan Raya Protokol Halim Perd Anakusuma, Jakarta Tel: 62 21 2852 9000 Fax: 62 21 2852 90001 Contact: Treesye Agustina Tmorason & Erna Ningsih E-mail: [email protected] [email protected]

Indonesia Semarang PT. Agility International

PT. Agility International Indonesia JL. Marina Raya No. 7 Semarang, Indonesia Tel: 62 24 7619528 Fax: 62 24 7619529 Contact: Belona Ika Yulianti E-mail: [email protected]

Indonesia Surabaya Agility Logistics PT. Agility International Indonesia Container Freight Station Jl. Margomulyo No. 46 Blok D-14 Surabaya – Indonesia Main Office-Jl.Bengawan No.1 Surabaya 60241,Indonesia Tel: +62 31 7498068 Fax: .+62 31 7497973 Contacts: Sugiyanto Ugix & Musa Latupapua [email protected] [email protected]

Italy All ports SaviTransport* SAVITRANSPORT S.P.A. VIA TEVERE, 2/12 50019 OSMANNORO Tel: 055-3062213 Fax: 055-5201489 Marina Mancini [email protected]

Japan Nagoya DAMCO DAMCO Japan Omori Bellport D-Wing, 13F. 6-26-3 Minami-Ohi Shinagawa-ku Tokyo, Japan 140-8554 Tel: +81 (03) 42884775 Fax: +81 (03) 42884761 Hidero Aida [email protected]

Kenya

Mombasa

UTi c/o Union Logistics Ltd.

UTi – Kenya - P.O. Box 4831 Nairobi, Kenya Tel: 254-20-3522391/2/3 Fax: 254-20-551141 Mr. Henry O. Owuor [email protected] Colman [email protected]

Korea Busan DAMCO Damco Korea Limited Seoul - South Korea Phone: +82 2 2054 4537 - Fax: +82 2 2054 4787 Keun-Young Lee [email protected]

3. Import Logistics




Consolidator

Contact

Malaysia Pasir Gudang DAMCO DAMCO LOGISTICS MALAYSIA SDN BHD Bangunan Palm Grove II, 2nd Floor, No 12 Jalan Glenmarie (Persiaran Kerjaya), Section U1, 40150 Shah Alam, Selangor Darul Ehsan, Malaysia [email protected] , Nurmuzlifa Mohamad Munir (Nur) Tel: (60) 3 5639 0326 Fax: (60) 3 5569 1206

Mali Bamako DAMCO DAMCO Mali Iimmeuble UATT, Quartier du Fleuve BP 3259 Bamako, Mali, Tel: (223) 675 5913 / 222-9718 Fax: (223) 222 86 28 Abdoul Kader Sylla [email protected]

Mexico Guadalajara Agility Mexico Trafinsa S.A. de CV. AV. Solidaridad Iberoamericana No 3000 Col. Las pintitas., El salto Jalisco Tel: 52 33 36892450, 52 33 36924551 Fax: 52 33 36892452 Contact: Yanko Toto & Carmen Toto E-mail: [email protected] [email protected]

Morocco All Ports DAMCO DAMCO Morocco RN 9, km 9 Ech Chellalate Casablanca Morocco Tel: 212-2232-9230 Fax: 212-2232-9229 Mehdi Taha Bouamri Youness Lamarti [email protected] [email protected]

Namibia All Ports DAMCO DAMCO Durban (South Africa) 8th Floor, The Marine Building Durban, South Africa 4001 Lynette Marimuthu Tel: +27 313367526 Fax: +27 313367506 [email protected]

Pakistan Karachi Agility Logistics Agility Logistics (PVT)Ltd, 2ND Floor, Progressive Centre BLOCK-6,PECHS- SHAHRA-E-FAISAL Karachi, Pakistan TEL: +92.21.111436436 Fax: +92.21.4383763 -4 Contact: FAZAL BALOCH E-mail: [email protected]

Peru

All Ports DAMCO DAMCO Peru Ave. Canaval y Moreyra 480, 2nd floor Lima, Peru Evelyn Sarmiento Tel: +51 (511) 6160303 Fax: +51 (511) 6289372 [email protected]

Philippines Manila DAMCO APM Global Logistics Filipinas Inc 9/F One E-com center, Harbor Drive corner Sunset Avenue Mall of Asia Complex, Pasay City 1300 Philippines Phone: +63 2 9767527 Fax: +63 2 7998261 Chai Jaylo- Lim [email protected]

Poland All Ports UTi Deutschland GmbH UTi Deutschland GmbH Hamburger Strasse 181, 22083 Hamburg, Germany Tel: 49 (0) 40 368001-351 Fax: 49 (0) 40 368001-198 Stefan Kock [email protected]

Portugal

Lisbon UTi (Portugal) UTi (Portugal) Zona Industrial do Cabo, Castanheira do Ribatejo, 2600-619 Castanheira do Ribatejo, Portugal Tel: 351 263200522, Fax: 351 263200518 Marcos Gomes [email protected] Jorge Beselga [email protected]

3. Import Logistics




Consolidator

Contact

Senegal Dakar DAMCO DAMCO Senegal Km 3,5 Boulevard du Centenaire De la Commune de Dakar, B.P. 3836 Dakar, Senegal Mohamed Kane Tel: +221 (33) 8591112 Fax: +221 (33) 8321623 [email protected] Kurven Saravanan Monien Tel: +221 (33) 859 1175 Fax: +221 (33) 832 1623 [email protected]

Singapore Singapore DAMCO DAMCO LOGISTCIS SINGAPORE PTE LTD 200 Cantonment Road, #05-03, Southpoint Singapore, 089763, ROS Tel 65-6318-3438 Fax 65-6223-6976 [email protected]

Spain All Ports UTi Spain UTi Spain Plaza Armada Espanola, 2, 2°, 46011 Valencia, Spain Tel: 34 96 316 44 93 Fax: 34 96 324 0053 Beatriz Sevilla [email protected]

Sweden All Ports UTi Logistics AB UTi Logistics AB Andra Langgatan 19, S-413 28 Gothenburg, Sweden Tel: 46-31-7755504 Fax: 46-31-148010 Camilla Oskarsson [email protected]

Taiwan All Ports DAMCO Damco Taiwan Co., Ltd. 11th Floor, No 2, Tun-Hua S. Road Sec. 1, Taipei 105, Taiwan ROC Tel: 886 (2) 27750938 Fax: 886-022775-2758 Doris Yang [email protected]

Thailand Bangkok / Laem Chabang

DAMCO Damco Logistics (Thailand)co.,ltd 46TH FL RIVER WING EAST EMPIRE TOWER 195 SOUTH SATHORN RD YA 10120 YANNAWA, BANGKOK BANGKOK THAILAND PHONE 66 27529270 FAX +66 27529873 Pantipa Jumpasri [email protected]

Tunisia Tunis DAMCO DAMCO RN 9, km 9 Ech Chellalate Casablanca, Morocco Mehdi Taha Bouamri (Casablanca office) Tel: +212 (522) 887120 Fax: +212 (522) 329229 [email protected]

Turkey All Ports UTi UTi Turkey Cihangir Mah. Sari Zeybek cad. No:8 C Blok, TR 34310 Avcilar, Istanbul, Turkey Tel: +90 212 422.80 80 Ext. 181; Fax: +90 212 422.0080 Defne Gunduz; [email protected]

UK All Ports UTi UTi Worldwide (UK) Limited Unit 1 Merlin Park, The Furrows (off Barton Dock Road), Trafford Park, Manchester, M32 0SZ, United Kingdom Carol Jennings [email protected] Ph +44 (0) 161 848 0581 F +44 (0) 161 848 6901

Vietnam Hanoi, Haiphong

Agility Ltd. Agility Ltd., 06th Floor, 85 Nguyen Chi Thanh St, Dong Da Dist, Ha Noi, Vietnam Tel: 084 437737300~02 Fax: 084 437737303 Contact: Mai Trang Nguyen Nhu Email: [email protected]

Vietnam Ho Chi Minh City

Agility Ltd. Agility Ltd., 08th Floor, Room 8.2-8.3, 364 Cong Hoa St, Dist Tan Binh, Ho Chi Minh City, Vietnam Tel: 084 38132840~49 Fax: 084 38132812 Contact: Tuong Anh Email: [email protected]

4. Domestic Logistics



4. DOMESTIC LOGISTICS

TRAILER LOADING

To increase receiving efficiencies, all domestic items must be loaded as follows:

� Unless otherwise authorized by [email protected], all products must be palletized on 48in x 40in pallet. � Load each trailer and group by SKU and by P.O. Do not mix P.O.'s throughout a trailer. Do not ship partial

P.O.'s on multiple trailers unless authorized by CPWM Transportation. � Individual pallet loads must be properly secured with strapping or stretch-wrapping to prevent load shifting. � Load bracing and/or blocking devices must be used to restrain load from shifting. � Those vendors that mix P.O.'s and/or SKU's throughout a trailer will be charged-back for all sorting costs.

PALLET POLICY

We do not pay for pallets and do not operate a pallet exchange program. All domestic (and approved import) products must be shipped on standard 48in x 40in (122cm x 102cm) 2-way or 4-way GMA pallets, grade B or

better, wooden pallets unless prior written approval is granted by CPWM. Vendors that do not adhere to this policy (such as damaged or wrong size pallets) will be charged back accordingly. This is critical to the safety of our workers and to the integrity of the product. � Pallets are only to be used for domestic merchandise (excluding some imported food and fragile items). � The California Air Resources Board (CARB) has introduced a measure to reduce Formaldehyde Emissions

from Composite Wood Products. Pallets are included in this measure. Please refer to the following link for complete details: http://www.arb.ca.gov/toxics/compwood/compwood.htm. Contact [email protected] with questions.

� There is no maximum pallet height; however, the corrugated and packaging must be adequate enough for the bottom cartons to sustain the load. Excessive damage and evidence of inadequate packaging or corrugated will be subject to chargeback.

� Place cartons so they do not overhang the edges of the pallet. No leaning, bulging, or unstable loads permitted � All cases must be palletized so that shipping labels and carton markings (such as “This Side Up”) are visible

and should be facing towards the rear door of the trailer for ease of unloading and identification. � Secure cartons to pallets with stretch wrap. � Corner posts/edge protectors are required for product not shipped in corrugated cartons. � If there are multiple P.O.’s on a shipment, sort cartons by P.O. / SKU, making sure that each pallet contains

cartons for only one P.O. If your carton count is insufficient to build a complete pallet, you may combine multiple items on one pallet by placing slip-sheets/heavy paper dividers between P.O.’s/SKU’s/Best By Dates so that cartons are clearly segregated.

� All pallets must be marked with the following on at least 2 sides of each pallet:

• Purchase Order # (if more than one P.O. per pallet, list all P.O.'s and separate PO's on pallet with slip sheet)

• Number of cartons per SKU on pallet

• SKU # (if pallet contains more than one SKU, list all SKU #'s and separate SKU's on pallet with slip sheet)

• Use the word “mixed” if pallet contains multiple P.O.’s/SKU’s/Best By Dates.

DOCUMENTATION

Bill of Lading (B.L.)

Separate B.L.’s must be cut for each destination DC. Multiple P.O.'s sent to the same destination, as a single shipment, must be placed on a single B.L. The B.L. MUST include: � Destination DC name and number � All P.O. and trailer numbers � The number of cartons � Any special handling instructions � Bill of Lading must be marked as Freight Collect.

All Domestic Transportation

questions should be sent to

[email protected]




� NOTE: Vendors must ensure that all third party carriers sign the B.L. to acknowledge the pick up of merchandise. Exact case quantities must be noted on the B.L. Vendors are not permitted to indicate only the number of pallets. In the event that case quantities are not shown, vendors will be held liable for all shortages.

Packing List

� Packing lists must be attached to the lead carton. The packing list must include: � SKU number(s) and P.O. number(s) � Carton quantities by P.O. (units per carton and total units per P.O.) � It is no longer necessary to fax a packing list to us prior to shipment.

FREIGHT COLLECT SHIPMENTS

Pick-Up Request

All requests for pick up require 72 hours advanced notice (Saturday , Sunday and actual ship date excluded)

prior to the ship date stated on the PO and no earlier than 2 weeks prior to the ship date stated on the PO (including Saturdays and Sundays). The day the form is submitted does not count as 24 hours. For example, if the ship date stated on the PO is a Friday, the form must be submitted no later than Monday of that week to be in compliance (see Domestic Pick-Up cheat sheet on second tab of the Domestic Pick-Up Request Form for examples of when form should be submitted). To request a pick up, the Domestic Pick-Up Request Form must be completely filled out (including cases and units) and emailed to [email protected]. Faxed copies are not accepted. To obtain a copy of this form, email [email protected] or go to our Vendor Relations website. Vendors will be issued an Expense Offset Fee for non-compliance (see section 6).Note that time of day does not apply. 72 hours is based on full day

increments.

If more than one PO is planned to ship together on the same movement, then all PO #’s must be listed on the same bill of lading along with the movement number. When the driver arrives, all PO’s must be loaded and shipped together as instructed on your Vendor Confirmation sent from a Cost Plus Transportation representative. If the driver does not ask for a specific PO that has been routed to ship with other PO’s on the same movement, then Transportation must be notified at [email protected] before driver is released. If the vendor does not hear back from [email protected] within the hour, the driver can be released, but the Bill of Lading must be marked that specific PO was not picked up due to driver refusing to take PO.

Vendor Confirmation Form

After receiving the Domestic Pick-Up Request Form (see 4-1) via email, our Domestic Logistics Department will email back a shipping confirmation with all appropriate shipping information. The shipping confirmation will not

be emailed back to the vendor until at least 24 hours prior to the scheduled pick up date.

Pallet Space Requested

Charges for pallet spaces not used on a truck will be applied to the vendor if the shipper loads less pallets then issued on the pick up request and/or confirmed on the Carrier Confirmation. Charges are calculated by the price of the load divided by the pallets space planned. (example; a truck that costs $2,000.00 and is planed for 26 pallets, each pallet space will be charged $76.92.) Vendors will be issued an Expense Offset Fee for non-compliance (see section 6).

Detention Charges

Carrier detention will accrue one hour after the appointment time. Once detention has started, $13.75 will be charged for every 15 minute (rounded off) increments until the load has been released. Detention will be approved on two conditions: 1) The Domestic Logistics Department will contact the shipper to verify the carrier’s request, if the shipper consents then the detention will be applied. 2) The carrier provides a Bill of Lading upon the driver’s arrival and departure date and times with a signature by the shipper. If the arrival & departure times match the carrier’s request then the detention will be applied. Vendors will be issued an Expense Offset Fee for non-compliance (see section 6).




PRE-PAID SHIPPING

Product is to be shipped to the proper DC as indicated on the P.O. Delivery appointments must be scheduled with the DC at least 3 days in advance. During the months of September through November, we require 5 days advance notice. Vendors will be charged back for all delivery appointment violations (e.g. detention, storage). All requests for delivery appointments for Pre-paid vendors must be submitted on the DC Receiving Appointment Request Form located on our Vendor Relations website. Phone calls will not be accepted. Questions should be directed to: � Stockton DC: [email protected]

� Virginia DC: [email protected]

SHIPMENTS OF LESS THAN 100 LBS.

Shipments of less than 100 pounds total may be shipped UPS Standard Ground. All cartons in the shipment must be aggregated to determine the total weight. UPS charges are to be billed as a separate line item on the invoice.

EXPEDITED SHIPMENTS

The CPWM Buyer must authorize all expedited freight services (such as Fed Ex, UPS 2nd day air, etc.) in

writing. Any costs for unauthorized expedited shipping will be at the vendor’s expense.

ADDITIONAL SERVICES

Any and all charges for additional services performed on the vendor’s behalf are the responsibility of the vendor. This includes loading, sorting, etc. If freight terms are collect and an unauthorized carrier is used, any additional costs incurred, above that which we would have paid for the approved carrier, will be charged back. See section 6.

HAZARDOUS MATERIALS

The shipment of hazardous materials must comply with all Local, State and Federal Hazardous Materials Regulations. Certification must be marked on the B.L. pursuant to the Department of Transportation Regulations.

SECURITY STANDARDS

Domestic vendors that are selling goods on an “FOB port of entry” basis (i.e. CPMS pulls container from the port) should go to the Import Logistics section to view our security standards

5. Accounts Payable



5. ACCOUNTS PAYABLE

OVERVIEW

It is our intent to pay vendor invoices within the agreed upon order payment terms. To ensure on-time payment,

our Accounts Payable Department (A/P) requires the vendor invoice to meet the requirements as described below (as well as the Customs requirements described in section 3). Vendors will be issued an Expense Offset Fee for non-compliance (see section 6).

IMPORT DOCUMENTATION

We pay for direct import shipments upon submission of a negotiable on-board document. To ensure there is no delay in matching payment requests to shipment events, we require that invoice copies be submitted to the Consolidator 72 hours prior to the vessel sailing. See section 3 for more details. The Consolidator will send a complete shipment package to us within 5 days of vessel sailing. Preparation of payments will begin upon receipt of the complete shipment packet. To obtain payment, vendors must submit the following for each discrete

shipment to the Freight Consolidator 72 hours prior to the vessel’s scheduled sailing:

� An accurate and complete commercial invoice (see Invoice Requirements in this section and in section 3) � Packing list and other applicable documentation (see Imports section 3 for more details) � Any applicable documentation (see Imports section 3 for more details) � Passing Quality Assurance test result or CPWM QA Testing Waiver Form. This policy is effective April 1,

2008. See sections 2 and 4 for more details. � General Certification of Conformity (GCOC) – A certification, based on a reasonable testing program is

required for each shipment of adult and children’s products that are subject to a consumer product safety rule, ban, standard or regulation enforceable by the CPSC including furniture, rugs, candles with metal wicks

clothing and cleaning products. As a domestic vendor, you must be able to supply Cost Plus and/or the CPSC with a General Certification of Conformity upon request for all covered products manufactured on or after November 12, 2008. The form is located on our Vendor Relations website under Forms.

� Third Party Test Certificate - Toys and children’s products must have a Third Party Test Certificate issued by a CPSIA recognized independent third party test lab for lead in paint and other surface coatings and small parts. Lead in substrate and phthalates currently do not require a Third Party Test Certificate, however, must be in compliance with all applicable rules and bans. Therefore, all Toys and children’s product must be tested to the Cost Plus Toy and Children’s Product protocols.

� Certification of Fumigation (only for products made from wood or natural fiber materials such as but not limited to furniture, decorative accessories, and baskets).

NOTE: Import invoices, packing lists, and related export documentation should NOT be sent to CPWM A/P directly,

unless otherwise requested. At time of press, only original pasta certificates and original fishery certificates should be sent to our Corporate Logistics department.

Import Invoice Requirements

Issue only one invoice per P.O. Vendors that issue invoices containing more than one P.O. will be issued an Expense Offset Fee to pay for administrative costs (see section 6). To facilitate payment within the P.O. terms, the following information and specifications are required in English on every merchandise invoice.

Invoice number Invoice date (PO Shipping Date) P.O. Number and related SKU numbers Quantity of each SKU Unit cost & extended cost (include unit of currency) Shipper's name and address. Remit-to address, contact name, phone, fax, and e-mail address Same vendor name and address that is on the Purchase Order

Accounts Payable

questions can be sent to

[email protected]

5. Accounts Payable



Actual manufacturer’s name and physical address (for each SKU) Remit-to address, contact name, phone, fax, and e-mail address Consignee – Cost Plus Management Services, Inc., 200 Fourth St., Oakland, CA 94607 Destination DC address Terms of sale Net and Gross Weight and CBM by line item Freight allowance, volume discount, advertising allowance or any other discounts or allowances should be identified as individual line items and deducted, if applicable. If invoice is being factored, please indicate “FACTORED INVOICE” on the top of the first page. Complete and precise item description - basic item, material from which that item is made, and size. The country of origin for each SKU (US firms must include a foreign manufacturer’s name and full address) When sending replacement parts for product, report as individual line items (every bolt, screw, etc.). NOTE: Refer to section 3 for invoice requirements related to Customs clearance and other government agencies.

DOMESTIC INVOICES

Send all DOMESTIC merchandise invoices to our A/P Department at the following address: Cost Plus Management Services, Inc.

Attn: A/P Dept.

P.O. Box 23350

Oakland, CA 94623

Domestic Invoice Requirements

Issue only one invoice per P.O. Vendors that issue invoices containing more than one P.O. will be issued an Expense Offset Fee to pay for administrative costs (see section 6). To facilitate payment within the P.O. terms, the following information and specifications are required in English on every merchandise invoice.

Invoice number Invoice date Consignee – Cost Plus Management Services, Inc., 200 Fourth St., Oakland, CA 94607 P.O. Number, related SKU numbers, and quantity of each SKU Unit cost & extended cost (include unit of currency) Same vendor name and address that is on the Purchase Order Shipper's name and address Remit-to address, contact name, phone, fax, and E-mail Destination DC address Terms of sale NOTE: Vendors shipping merchandise directly to Cost Plus Inc. stores should list the consignee as Cost Plus, Inc.

VENDOR PAYMENT

Our terms of payment are Net 60 days from the invoice date. Invoice date should be the same as the actual shipping date. Beverage vendors will be paid in accordance with state laws.

Letter of Credit (LC)

LC’s are approved on an exception basis only. If an LC is approved, it will be issued through Bank of America Hong Kong. LC's are issued 15-30 days before the negotiated ship date and expire 15-30 days after the latest shipment date. All bank fees (other than the issuance) are paid for by the vendors. Vendor requesting an LC must comply with all of the terms and conditions established by Cost Plus for its LC vendors.

Accounts Payable

questions can be sent to

[email protected]

5. Accounts Payable



Payment Process - Imports

We will remit payment via wire transfer. Please provide banking information on the CPWM Vendor Set-Up/Change

Form. Wire transfers are made once per week. Once we have received a shipment packet with complete documents (including passing QA test result or CPWM QA Testing Waiver Form) from the consolidator, the shipment is approved and the invoice is processed. We will process the invoice(s) in accordance with the payment terms of each vendor. We reserve the right to remit payment to vendors for merchandise through our in-country Buying Agent, who will remit payment to the vendors at our direction.

Payment process - Domestic

We will remit payment via check or Automated Clearing House (ACH). The preferred method of payment is

ACH. Please provide banking information on the CPWM Vendor Set-Up/Change Form. Checks and ACH payments are processed once per week.

FREIGHT BILLS

When billing for freight, report the freight charges on the merchandise invoice as individual line items and attach a copy of the freight bill.

PAYMENT DEDUCTIONS/CLAIMS

We reserve the right to adjust vendor remittance to include any and all deductions due to non-compliance outlined in this guide. See section 6 for more details. All credit balance/claims must be paid within 30 days and may be settled in the following manner (at our discretion): � We will deduct from future invoice, P.O., or wire transfer. � Vendor to send check or deduct claim from letter of credit

CHANGES TO VENDOR INFORMATION

Changes due to mergers, acquisitions, Chapter 11 filing, corporate office relocation, or company closures must be communicated to our Accounts Payable Department ([email protected]) in writing on the vendor’s company letterhead, and signed by a senior officer of your company.

INSURANCE REQUIRMENTS

At a minimum, all vendors, at its own expense, are required to secure and maintain in full force and effect during the term of the agreement the following insurance coverage. Any questions can be directed to [email protected].

Commercial General Liability insurance

� $1 million per occurrence � $2 million aggregate

Commercial Umbrella

� $5 million (vendors manufacturing or distributing high risk items including furniture, electronics, candles, cookware, any children's item, toys, lighting items, party favors, seasonal decorating & lighting items, costumes, food and beverages)

� $1 million (vendors manufacturing or distributing all other merchandise)

Coverage Compliance

� Vendors must provide Cost Plus Management Services, Inc. a Certificate of Insurance evidencing Product Liability coverage including bodily injury and property damage with limits of not less than $1,000,000 per occurrence and not less than $2,000,000 per general aggregate.

� The coverage and Certificate of Insurance must name Cost Plus Management Services, Inc., its officers, directors, employees, representatives and subsidiaries as Additional Insured per Vendors Additional Insured endorsement or equivalent.

5. Accounts Payable



� In the event of cancellation of the policy or reduction below the coverage limits provided, or expiration without renewal, 30 days advance written notice shall be given to Cost Plus Management Services, Inc. and 10 days advance written notice is required for cancellation due to non payment of premium.

� For any import vendors who provide Cost Plus Management Services, Inc. with goods by direct sale (rather than through a US-based importer) the Certificate of Insurance must show that the coverage territory includes the United States. Limits of insurance should also be shown in $U.S. dollars.

The Certificate Holder shall be: Cost Plus Management Services, Inc.

200 4th Street

Oakland, CA 94067

Attn: Corporate Risk

6. Expense-Offset Policy



6. EXPENSE OFFSET POLICY

OVERVIEW

It is our objective to expedite merchandise processing and reduce handling. When additional handling occurs, we incur additional expense. Our Expense Offset Policy is intended to directly offset the extra time and labor that

we spend correcting vendor errors and is without limitation to our other rights and remedies. We have gone to great lengths to ensure that these fees are not arbitrary and are intended to meet our needs for cost recovery. The fees described in this section may not be complete, as additional agreements with the vendor may occur. Please note that the fees described in this section cannot be waived. There are no exceptions. Most non-compliance related Expense Offset Fees are deducted directly from a future vendor payment. Depending on the method of payment, chargeback details may not be included in detail with your payment. To address this issue, prior to deducting any

non-compliance charges, we will send a monthly charge-back recap to your designated GT Nexus primary

and secondary contacts. It is critical that your dedicated GT Nexus contacts forward these reports to the appropriate people (Accounting, Operations, etc.). We may adjust vendor remittance to include any deductions due to non-compliance including (without limitation):

Ref # On-time shipping Expense Offset Section

1 All shipments made 1-10 days early or late (in relation to our ship window)

$250 per P.O. + 10% discount for lost sales (+ all costs to expedite if applicable)

1



1



1

4 All shipments made over 30 days early or late (in relation to our ship window)

$250 per P.O. + 25% minimum discount for lost sales or P.O. cancel

1

Ref # Product Order Quantity Expense Offset Section

5 Item quantity received over ordered quantity by more than 5%

$250 per P.O. + 20% discount for units over-shipped (or RTV)

1

6 Item quantity received under ordered quantity by more than 5%

$250 per P.O. + late shipment charges for units not shipped (if applicable) + costs for DC review if vendor disputes quantities received in error

1

7 Master Pack quantities - not as ordered $250 per SKU + cost to re-box (if applicable)

2

8 Inner Pack quantities - not as ordered $250 per SKU + cost to re-box (if applicable)

2

9 Product received was not ordered (substitution) $250 per SKU + all RTV costs (or Buyer negotiated discount)

N/A

Ref # Packaging/Labeling Expense Offset Section

10 Packing errors (e.g. cartons not sealed properly, etc.)

$250 per P.O. + cost to re-box/sort 2

11 Carton labeling errors (e.g. missing information) $250 per P.O. + cost to re-box/sort 2

12 More than one SKU per carton $250 per P.O. + cost to re-box/sort 2

13 UPC Ticketing errors (e.g. incorrect retail price) $250 per SKU + cost to re-ticket 2

14 “Best By” dates missing from item, master, or inner pack – Food Vendors

$250 per SKU + cost to re-label 2




Ref # Quality Assurance Expense Offset Section

15 Violation of U.S. laws, regulations and/or requirements (e.g. weights & measures, Prop 65)

$250 per SKU + all incurred costs (inspection, legal fees, fines, re-label, etc.)

2

16 Quality issues that warrant detailed inspection, re-work, or repair due to poor quality and/or packaging

$250 per SKU + cost to inspect/repair + cost of non-sellable inventory

2

17 Consumables received with less than optimal shelf life - Food Vendors

$250 per SKU + item discount (see declining payment scale – page 2-20)

2

18a Non-conforming & RTV Merchandise Warehousing

$250 per SKU + $20 per pallet/bay month (pro-rated)

1

18b Disposal of damaged/non-conforming goods $250 per SKU + all applicable disposal costs

1,2

Ref # Loading Expense Offset Section

19a Passing quality test result or QA Testing Waiver Form not submitted at the time of booking.

$500 per SKU + expedited lab fees + possible payment hold

2

19b GCOC and or 3PTC not included in Consolidator Documentation


2

19c Passing quality test result not submitted prior to shipment - Domestic Vendors


2

20 Items not loaded by P.O., or SKU’s not in sequence in container/trailer

$250 per shipment + cost to sort 3, 4

21 Improperly palletized freight (e.g. SKU’s and/or P.O.’s not sorted on pallet, substandard pallet quality)

$250 per shipment + cost to re-palletize/sort

4

22a Trailers/containers not braced properly and cartons have fallen over/insufficient bracing

$250 per shipment + cost of damages/re-work

3, 4

22b Incorrect loading – disregard of carton UP arrow $250 per P.O. + all incurred costs (inspection, damages, etc.)

3,4

22c Incorrect loading – exceeding stacking height (factory loaded containers only)

$250 per P.O. + all incurred costs (inspection, damages, etc.)

3,4

22d Incorrect loading – unsafe/unstable load (factory loaded containers only)


3,4

22e Incorrect loading – not per approved load plan (furniture vendors if applicable)


3,4

22f Loading of defective merchandise for RTV or re-fumigation (in case of infestation) per occurrence.

$250 per PO/container + any additional incurred tests

1

Ref # Shipping/Delivery Expense Offset Section

24 Consolidator booking errors - booked late -

Import

$250 per P.O. + all freight costs (if applicable)

3

25a Shipping Order not created in GTN 10 or more days prior to the PO ship date - Import

$500 per sku/PO shipment 3

25b Shipping Order inaccurately created in GTN -

Import

$500 per sku/PO shipment 3

26 Delivery appointment violations - Domestic pre-

paid

$250 per shipment + excess freight costs 4

27 Pick-up request violations (including P.O. not available for pick up) request not made at least 72 hours in advance, etc.) - Domestic collect

$250 per shipment + excess freight costs 4




29 Shipped in violation of FOB / freight terms $250 per P.O. + all freight costs (if applicable)

1

30 Shipped to wrong DC or store $250 per P.O. + all freight costs (if applicable)

1

31 Sample policy violation $250 per SKU + all freight costs 2

32 Unauthorized air/expedited shipments $250 per P.O. + excess freight costs 3

33 All unauthorized carrier accessorial charges (e.g. detention, storage, sorting, re-weight, etc)

$250 per shipment + all carrier accessorial fees

4

Ref # Documentation / Invoicing Expense Offset Section

34 Documentation not submitted to Consolidator at least 72 hours prior to vessel sailing - Import

$250 per P.O. 3

35 No declaration made (e.g. GSP, textile, Plant, etc.) - Import

$250 per P.O. 3

36 Invalid, incomplete, or missing bill of lading and/or packing list - Domestic

$250 per P.O. 4

37 Invoicing discrepancies (e.g. price higher than PO)

$250 per invoice 5

38a Invoice contains more than one purchase order/no purchase order listed

$250 per invoice 5

38b Invoicing error (e.g. Vendor name does not match Payee name on invoice)

$250 per invoice 5

39 Claims not paid within 30 days of notification $500 and payment hold 5

40 No Security Questionnaire on file – Import $500 and payment hold 3

41 Miscellaneous (errors not captured in #’s 1-40 above)

$250 per SKU + all incurred costs (inspection, legal fees, fines, re-label, etc.)

N/A

42 No current Vendor Guide Acknowledgment Form on file within 30 days of Vendor Guide receipt

$500 and payment hold VGA form

43 Incomplete SKU Folder (furniture vendors only)

$250 per SKU 2

44 Factory Inspection document not on file 24 hours prior to PO ship date - (furniture vendors

ONLY)

$500 per PO shipment QA Manual

DISPUTE RESOLUTION POLICY

Vendors have 7 calendar days (from the Compliance Report send date) to review and dispute the Expense Offset Fees recapped on the monthly compliance report. Please continue to respond in your current manner (preferred method is via email) within the 7 day period to avoid automatic deductions and to avoid filling out the form mentioned below.

After 7 calendar days (of the compliance report send date), the Charge Back Review Form must be used for Expense Offset Fee disputes. This form can be found on our Vendor Relations website. Complete this form, attach all supporting documentation and email to [email protected]. If applicable, supporting documents should be emailed with the form or faxed to Vendor Guide at 510-893-3681. Written notice of any dispute must be received within 45 calendar days of the compliance report send date. If the written dispute is received after the 45 day period, we will not recognize this dispute. Attached supporting documentation must be limited to information related to the violation in question. Incomplete forms will not be accepted. Please allow 30 days for a response from our Supply Chain Operations Department. You will be notified via email of acceptance or denial of your claim. Disputes that

don't follow this procedure will not be reviewed.



7. Appendix

COST PLUS MANAGEMENT SERVICES, INC. PURCHASE ORDER TERMS AND

CONDITIONS

These purchase order terms and conditions apply to every purchase of Merchandise (as defined in Section 1.1 below) from or on behalf of vendors of Merchandise (each a “Vendor”) selling Merchandise to Cost Plus Management Services, Inc., a California corporation (“Purchaser”).

1. FORMATION OF CONTRACT

1.1 This purchase order, all referenced documents attached or incorporated by reference, including Purchaser’s then-current Vendor Guide, as it may be updated from time to time by Purchaser, (a complete copy of which Vendor acknowledges having received and reviewed) are referred to collectively as the “Purchase Order.” The term “Merchandise” includes the goods and products described in this Purchase Order together with all sub-materials, labeling, packaging, commercial invoices, all export documentation, and other components to be provided by Vendor under the terms of the Purchase Order.

1.2 Purchaser shall issue a specific Purchase Order identification or reference number with respect to all sales and deliveries of Merchandise by or on behalf of the Vendor of that Merchandise. Vendor shall be deemed to have accepted a Purchase Order when Vendor confirms acceptance by electronic transmission, or by signature of Vendor or Vendor’s representative, or by Vendor’s commencing manufacture of the Merchandise for Purchaser, or by Vendor’s shipment of Merchandise against that Purchase Order. Vendor acknowledges that this Purchase Order may not have been signed by Purchaser, but nevertheless confirms that this Purchase Order constitutes a valid and legally binding agreement.

1.3 The Purchase Order constitutes the entire agreement between Purchaser and Vendor and incorporates all of the representations, promises and statements made in connection with this purchase of the Merchandise. THIS PURCHASE ORDER EXPRESSLY LIMITS ACCEPTANCE TO THE TERMS AND CONDITIONS STATED HEREIN, AND ANY ADDITIONAL OR DIFFERENT TERMS OR CONDITIONS, WHETHER IN A QUOTATION, ACKNOWLEDGMENT, ACCEPTANCE, INVOICE OR OTHERWISE, ARE REJECTED AND SHALL NOT APPLY UNLESS EXPRESSLY ASSENTED TO IN WRITING BY AN AUTHORIZED REPRESENTATIVE OF PURCHASER, NOTWITHSTANDING ANY CONTRARY LANGUAGE PROPOSED BY VENDOR THAT THE ACCEPTANCE OR USE OF, OR PAYMENT FOR, THE MERCHANDISE BY PURCHASER, OR ANY OTHER ACT OR FAILURE TO ACT BY PURCHASER, CONSTITUTES ACCEPTANCE OF ANY DIFFERENT OR ADDITIONAL TERMS OR CONDITIONS.

2. SHIPPING, INSPECTION, AND REJECTION OF MERCHANDISE

2.1 Purchaser reserves the right to cancel all or any part of this Purchase Order and to reject all or any part of the Merchandise that fails to conform to the provisions of this Purchase Order or otherwise relates to or involves a breach by Vendor of its obligations under this Purchase Order or any other agreement with Purchaser, including Merchandise that: (a) is shipped before or after the applicable shipping date; (b) fails to be packaged, labeled, marked, loaded, shipped, or delivered properly and in accordance with this Purchase Order; (c) is defective in any manner or not fit for the purpose sold, or varies from the Purchaser-approved final sample or specifications for which the Purchase Order was placed by Purchaser; (d) is the subject of any third-party claim, including for infringement of patent, trademark, service mark, trade dress, trade-name, copyright, design patent, or unfair competition; or (e) fails to have properly completed Country of Origin declarations and testing documents.



2.2 Vendor shall inspect all Merchandise before shipment to ensure quality, safety, and conformity with Purchaser-approved final samples and specifications and to ensure that the Merchandise is properly packed and loaded to prevent transit damage and tampering and satisfies all applicable shipping permits, as set forth in the Vendor Guide. Purchaser or Purchaser’s agent shall have the right to inspect the Merchandise before shipment and at any time during manufacture, including preliminary, final and random inspections. Any unpacking or handling of Merchandise incident to Purchaser’s inspection shall not constitute Purchaser’s acceptance.

2.3 Purchaser has the right to cancel this Purchase Order for any reason with respect to Merchandise that has not been shipped by giving Vendor reasonable notice of cancellation. If Vendor has not breached any term or condition of this Purchase Order or any other agreement with Purchaser, Purchaser shall, at Purchaser’s option, either (i) purchase any Merchandise that Vendor produced under this Purchase Order before such cancellation and that was specially manufactured for Purchaser and is not suitable for sale to any other buyer, or (ii) compensate Vendor for reasonable and unrecoverable costs actually incurred by Vendor to obtain or produce Merchandise that Vendor had obtained or produced solely for this Purchase Order before such cancellation. Purchaser shall have no other obligation or liability to Vendor on account of such cancellation.

2.4 At Purchaser’s request, given or withheld in Purchaser’s sole and absolute discretion, Vendor shall immediately remedy or cure to Purchaser’s satisfaction, any nonconformity in the Merchandise and/or any Vendor breach of any of its obligations under this Purchase Order. If Vendor fails to immediately remedy or cure any such breach upon Purchaser’s request, Purchaser may cancel this Purchase Order with respect to such Merchandise without any liability to Vendor. Purchaser also reserves the right, with or without notice to Vendor and in Purchaser’s sole and absolute discretion, to undertake or cause performance of the unperformed obligation or omission and receive from Vendor full and prompt reimbursement for the cost of such performance, and to remedy all or any part of any such non-conformity or other breach by selling or disposing of the Merchandise at prices determined by Purchaser, and/or by making repairs to such Merchandise, and by charging Vendor for Purchaser’s actual labor costs, material costs, overhead, and costs of returning or disposing of the Merchandise, including the cost of retail price markdowns and lost sales.

2.5 If Purchaser rejects all or part of the Merchandise, Purchaser may, at its option, (a) return all or part of the Merchandise to Vendor, whereupon Vendor shall immediately refund to Purchaser any part of the Merchandise price, together with all costs incurred by Purchaser in connection with rejection of nonconforming Merchandise, including, without limitation, the costs of inspection, packaging, transportation, duty, handling, and storage, or (b) accept all or part of the nonconforming Merchandise and reduce the price payable to Vendor by the amount of the decreased value of the Merchandise and by any lost sales and other damages. If Purchaser elects to reject the nonconforming Merchandise under clause (a) above, Purchaser shall be entitled, at Purchaser’s option, to demand delivery by Vendor of conforming Merchandise to replace the Merchandise rejected by Purchaser (without regard to the uniqueness of the Merchandise or the availability of substitutes) or to cancel the Purchase Order. If Purchaser accepts all or part of the Merchandise under clause (b) above, Purchaser shall deliver to Vendor a written statement of total price reduction for such nonconforming Merchandise and the amount of lost sales and other Purchaser damages attributable thereto, which aggregate amount shall be immediately payable to Purchaser by Vendor. If Purchaser elects to reject any nonconforming Merchandise, Purchaser shall also be entitled to demand prepayment by Vendor of all amounts payable to Purchaser in respect of such nonconforming Merchandise, including an immediate refund of any part of the Merchandise price theretofore paid for such nonconforming Merchandise and payment of all costs incurred (or to be incurred) by Purchaser in connection with the rejection of nonconforming Merchandise, including, without limitation, the costs of inspection, packaging, transportation, duty, handling, and storage, and Vendor agrees to remit the same to Purchaser immediately upon receipt of Purchaser’s written statement of the amount payable.

2.6 Any price reduction, refund, or other charge payable by Vendor to Purchaser under this Section 2 or any other Purchase Order provision may be taken by Purchaser, at Purchaser’s option, in the form of a reduction of the amount otherwise payable by Purchaser to Vendor, either pursuant to the Purchase Order



or pursuant to any other transaction between the parties. If Purchaser elects not to exercise its right of set-off (or if this remedy does not fully satisfy the amount due), Vendor shall pay the full amount of its outstanding obligation to Purchaser immediately upon receipt by Vendor of Purchaser’s statement of the amount due or, pursuant to the Vendor Guide, automatically deduct those chargebacks from the Vendor payment. If Vendor breaches any of its obligations under this Purchase Order, Purchaser shall be entitled to cancel or suspend its performance (in whole or in part) of any other Vendor order.

3. VENDOR WARRANTIES

3.1 Vendor represents, warrants, and guarantees that Vendor: (i) has the right, power, and authority to enter into and perform under this Purchase Order; (ii) will obtain all permits, licenses and the like as necessary to perform under this Purchase Order; (iii) will comply with Purchaser’s Vendor Code of Conduct and Ethics; and (iv) Vendor will comply with all applicable federal, state, and local laws, statutes, rules, regulations, ordinances, and codes (collectively, “Laws”).

3.2 Vendor represents, warrants, and guarantees that all Merchandise sold or provided to Purchaser:

(i) complies with all Laws (both in the country in which the Merchandise is produced and exported as well as the country and state(s) to which the Merchandise is imported and ultimately sold) relating to its manufacture, processing, packaging, labeling, certification, marking, weighing, inspecting, testing, transportation, quality, and sale (collectively, for purposes of this Section 3.2, “Applicable Laws”). Without limiting the generality of the foregoing, but as examples only, Vendor represents, warrants, and guarantees that:

(a) the weights, measures, sizes, legends, words, and particulars or descriptions, if any, stamped, printed, or otherwise attached to the Merchandise or its containers are true and correct and in compliance with all Applicable Laws; and

(b) the Merchandise and any accompanying documentation conform and comply with and, where applicable, are registered pursuant to the applicable provisions (as amended from time to time) of the Federal Food, Drug and Cosmetic Act, the Consumer Product Safety Act, the Consumer Product Safety Improvement Act, the Federal Hazardous Substances Act, the Food Safety Modernization Act, the Federal Trade Commission Act, C-TPAT container and packaging requirements, U.S. Customs and Border Protection requirements, child and involuntary labor prohibitions and the provisions of Purchaser’s Social Compliance Policy (set forth in the Vendor Guide), and any regulations, guidelines, rules, and administrative and judicial rulings implementing or interpreting any of the foregoing acts. This Purchase Order shall not be subject to the United Nations Convention on Contracts for the Sale of Goods.

(c) the Merchandise is in full compliance with California Proposition 65 (Calif. Health & Safety Code 25249.5-25249.13) and its implementing regulations (22 Calif. Code Reg. § 12000 et seq.), including that the Merchandise does not contain chemicals known to the State of California to cause cancer or reproductive toxicity or that the quantity of the chemical(s) in question is in compliance with Applicable Laws, including California Proposition 65.

(ii) is fit and safe for the purposes for which the Merchandise may be used and for the ordinary purposes for which the Merchandise is manufactured, (b) is merchantable, (c) is free from defects in workmanship and materials, (d) is of good quality and adequately and correctly packaged, labeled, and loaded in conformance with all shipping terms of sale, and (e) meets each final specification and sample approved by or on behalf of Purchaser and Vendor for the Merchandise covered by this Purchase Order;



(iii) all food product Merchandise will be delivered with a reasonable shelf life remaining as agreed upon in advance by Purchaser and Vendor based on the type and nature of the product, and will have legibly printed on all packages coding information according to a coding method agreed upon in advance by Vendor and Purchaser;

(iv) conforms to the terms of any applicable express or implied warranty under the laws of the state(s) in which Purchaser sells the Merchandise;

(v) complies with the provisions of the Vendor Guide;

(vi) does not and will not violate, misappropriate, or infringe any United States or foreign patent, trademark, service mark, trade dress, trade-name, copyright, design patent, right of publicity, or any other third-party right anywhere in the world; and

(vii) is transferred with good title; that such transfer is lawful, and that the Merchandise is delivered free from any security interest or other lien or encumbrance.

3.3 In addition to compliance with Purchaser’s Vendor Code of Conduct and Ethics, and without limiting the obligations of such compliance, Vendor specifically represents, warrants, and guarantees that:

(i) with respect to the payments Vendor has received and will receive from Purchaser in relation to this Purchase Order: (a) all such payments are solely in satisfaction of Purchaser’s obligations to Vendor arising out of this Purchase Order; (b) no such payment will be used in whole or in part to finance any illegal activities or otherwise contravene Laws, including anti-money laundering laws and regulations, or in any manner in whole or in part that violates any U.S. anti-corruption law, including the Foreign Corrupt Practices Act of 1977 (“FCPA”), as amended, 15 U.S.C. §§ 78dd-1, et seq.; Law of the U.S. or any other nation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business or other applicable conventions, or any other applicable anti-corruption law; and (c) no such payment will be directly or indirectly offered or given, or used to procure or offset any item of any value to be offered or given, to any government official for the purpose of obtaining or retaining business for any person, or to secure an improper advantage for such purpose;

(ii) neither Vendor nor its affiliates, nor any of their respective current or former directors, executives, officers or employees (a) has, directly or indirectly, paid or given, or offered, promised or authorized the payment or gift of, anything of value to any official, employee or person acting on behalf of any government, governmental agency or instrumentality, government-owned entity or public international organization, or any political party, party official or candidate for public office, or any employee of any customer or supplier in contravention of the laws of any jurisdiction, or (b) has violated or is violating any provision of the FCPA or any applicable law implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business, or any other applicable anti-corruption law;

(iii) All payments to any agents, consultants, and others made by Vendor or other persons or entities in connection with the business of Vendor have been in payment of bona fide fees and commissions and not as bribes, kickbacks, or otherwise illegal or improper payments. All such payments have been made directly to the parties providing the goods or services for which such payments were made, and no such payment has been paid in a manner intended to avoid currency controls or any party’s tax reporting or tax payment obligations; and

(iv) Vendor will report immediately to Purchaser any request to violate the foregoing anti-corruption provisions.



4. LATENT DEFECTS

4.1 If any Merchandise delivered by Vendor and accepted by Purchaser is thereafter discovered to be nonconforming to the terms of this Purchase Order or the Vendor Guide, or otherwise defective, whether such defect or nonconformity is discovered by Purchaser or by third-party transferees of such Merchandise, Purchaser shall be entitled to revoke acceptance of such nonconforming Merchandise and exercise any or all of its rights and remedies available to Purchaser, including as stated in Sections 2.5 and 2.6 of this Purchase Order. In no event shall any payment to Vendor by Purchaser constitute acceptance of nonconforming Merchandise or other waiver of rights. The foregoing liability of Vendor for defects, latent or otherwise, shall be continuing in nature.

5. RECALLS

Where Purchaser or Vendor has good cause at any time to believe that any Merchandise contains defects or hazards which could create a risk of harm to any person or property, does not comply with applicable law, or is otherwise materially nonconforming, upon Purchaser’s request, Vendor shall, at Vendor’s expense, promptly locate, identify, and recall any such Merchandise, whether in the possession of Purchaser or Purchaser’s customers.

In the event any Merchandise is the subject of a recall (which includes safety notices) initiated by Purchaser, Vendor, or a government or consumer protection agency, Vendor shall be responsible for all costs and expenses associated with the recall or notice and shall reimburse Purchaser for all costs and expenses incurred by Purchaser related to the recall or safety notice, including recalling, handling, shipping, and/or destroying the Merchandise (and where applicable, any products with which the Merchandise has been packaged, consolidated, or commingled), penalties, including refunds to customers and payment to Purchaser for its net landed cost of unsold Merchandise.

6. INTELLECTUAL PROPERTY

Purchaser grants Vendor a limited license to use Purchaser’s trademarks only on Merchandise made for Purchaser pursuant to this Purchase Order and for no other Merchandise or purpose. Vendor shall protect any and all intellectual property rights (United States or foreign patent, trademark, service mark, trade dress, trade-name, copyright, design patent, right of publicity, and other proprietary rights) of Purchaser, including, but not limited to, Cost Plus, World Market, Cost Plus World Market, World Market Explorer, World Market Pairings, World Market Design, Mercado del Mundo, Marche Du Monde, Asian Passage, Market Classics, Ponoma, World Grill, Zinfatuation, Electric Reindeer, Cab-u-lous, Castello Del Lago, Crossroads, and One World, One Store by using such rights only as expressly permitted by Purchaser. Any and all designs, patterns, graphics, marks and other artwork (“Intellectual Property”) used in the Merchandise, shall be and remain the sole and exclusive property of Purchaser, and Vendor may not use any such Intellectual Property without the express written consent of Purchaser, whether in the U.S. or worldwide. Vendor also agrees that it shall not sell any Merchandise bearing the Intellectual Property except as provided for in said Purchase Order(s).

7. INDEMNITY

Vendor agrees to indemnify, defend (with legal counsel approved by Purchaser, such approval not to be unreasonably withheld), and hold harmless Purchaser and its affiliates, and their respective employees, agents, and representatives (“Purchaser Indemnitees”) from and against any and all actual and threatened claims sounding in contract, tort, strict liability, or otherwise, demands, causes of action, liabilities, judgments, penalties, awards, settlements, losses, costs, damages, and/or expenses in law or equity (including, attorneys’ fees, professional, expert or consultant fees, investigative costs and costs of appeal and enforcement of this provision) of every kind and nature (“Claims”) whether arising during or after the performance of this Purchase Order to the extent the Claims arise directly or indirectly out of or relate to, or are alleged to arise out of or relate to:

(i) the failure of the Merchandise to conform to the provisions of this Purchase Order, any breach of any of Vendor’s representations, warranties, or agreements under this Purchase Order, or with respect to Vendor’s performance or failure of performance of the terms of this Purchase Order;



(ii) any actual or alleged death or injury to any person, damage to any property, or any other damage or loss claimed to result in whole or in part from the Merchandise or any actual or alleged defect or product liability in the Merchandise;

(iii) any actual or alleged active or passive negligence, strict liability, or intentional misconduct of Vendor in whole or in part (and anyone directly or indirectly employed by Vendor, or anyone for whose acts Vendor may be liable);

(iv) any actual or alleged infringement by Vendor or by the Merchandise of any rights of third parties, including, without limitation, patent, trademark, service mark, trade dress, trade-name, copyright, design patent, right of publicity, or other proprietary rights; or

(v) any actual or alleged violation of any Laws.

8. EXCLUSION OF DAMAGES

PURCHASER SHALL NOT BE LIABLE TO VENDOR, WHETHER IN CONTRACT, TORT, PRODUCT LIABILITY, OR OTHERWISE, FOR ANY SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES (INCLUDING LOST PROFITS AND LOSS OF GOODWILL) RELATED (i) IN ANY WAY TO THIS PURCHASE ORDER, (ii) TO ANY CANCELLATION OR TERMINATION OF THIS PURCHASE ORDER BY PURCHASER, OR (iii) TO PURCHASER’S PERFORMANCE, OR FAILURE OF PERFORMANCE, UNDER THIS PURCHASE ORDER, WHETHER OR NOT PURCHASER KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY OR PROBABILITY OF SUCH DAMAGES.

9. INVOICES AND DISCOUNTS

9.1 Upon shipment and in a timely manner, Vendor shall provide a commercial invoice to Purchaser. The invoice must reference the original Purchase Order number, the quantity and description of items shipped, both the unit and total price for each item, quota allocations, and, where required, a valid export visa setting forth the correct quota category and quantity in category units as may be necessary to secure importation of the Merchandise to the United States. All charges must be stated in United States dollars, unless the terms of the original Purchase Order provide for payment in foreign currency. Any discounts or previously authorized additional charges shall be explicitly noted and itemized. The prices on any Purchase Order are not subject to any increase or additional charges because of increased costs, any change in Applicable Laws, or any other reason. Purchaser will not pay for packaging, labeling, loading or draying, or for packing cases, reels, drums, or other extras, unless otherwise specified by the express terms of this Purchase Order. Purchaser reserves the right to remit payment to Vendor for Merchandise through a Buying Agent, who will remit payment to Vendor at Purchaser’s direction.

9.2 In the event of foreign shipments sold on an “ex factory” or “FOB basis” (or other sales terms obligating Purchaser to act as the Importer of Record), Vendor’s invoice shall also be in full compliance with any applicable regulations of the U.S. Department of Customs and Border Protection, all other Applicable Laws, and all requirements specified in Purchaser’s Vendor Guide.

10. ADEQUATE ASSURANCES

When reasonable grounds for insecurity arise with respect to Vendor’s performance under this Purchase Order, Purchaser may demand adequate assurances of due performance in writing and may suspend its own performance beginning five (5) days after delivery of such written demand, and continuing until Purchaser receives adequate assurances. Vendor’s failure to provide such assurances of due performance as are adequate under the circumstances, within a reasonable time not exceeding five (5) days, shall constitute a breach of Vendor’s obligations under the Purchase Order.



11. CHOICE OF LAW/VENUE

The laws of the State of California and United States of America will govern the validity, construction, and performance of this Purchase Order without regard to the conflicts of law provisions thereof. Any claims or actions relating to this Purchase Order shall be brought in the California courts sitting in Alameda County, California or the United States District Court for the Northern District of California, and the parties hereby submit to the jurisdiction of such courts and waive change of venue to any other jurisdiction.

12. THIRD PARTY BENEFICIARIES

Cost Plus, Inc. and its affiliates are express, intended third-party beneficiaries of all of Purchaser’s rights and remedies under this Agreement with full rights to enforce for and on their own behalf all of Purchaser’s rights and remedies under this Purchase Order to the same extent as if they had entered into this Purchase Order with Vendor as a signatory party. Except with respect to the rights of Cost Plus, Inc. and its affiliates as third-party beneficiaries of Purchaser’s rights and remedies under this Purchase Order, nothing in this Purchase Order is intended to confer any rights or remedies under or by reason of this Purchase Order on any persons other than the parties to it and their respective successors and permitted assigns.

13. GENERAL PROVISIONS

13.1 This Purchase Order (including the referenced documents attached or incorporated by reference, all of which are incorporated into this Purchase Order in full by this reference) constitutes the entire agreement between the parties and supersedes all previous communications, agreements, promises, representations, understandings, and negotiations, whether written or oral, between the parties with respect to the Merchandise. This Purchase Order may only be amended in a writing signed or acknowledged by an authorized representative of both parties. Notwithstanding the foregoing, Purchaser reserves the right to amend the terms of this Purchase Order from time to time either in writing or by electronic transmission including email, and Vendor’s continued performance of its obligations under this Purchase Order without objection to Purchaser within ten (10) days after receipt of such amendment shall constitute Vendor’s acceptance of those amended terms and conditions. If any amendment is unacceptable to Vendor, Vendor shall provide prompt written notice to Purchaser of any terms and conditions that are not acceptable to Vendor within three (3) days of such notice of such changed terms and conditions.

13.2 Neither this Purchase Order nor any obligations under this Purchase Order may be assigned, transferred, or delegated by Vendor (whether by operation of law, merger, acquisition, or otherwise) to any party whatsoever and any purported assignment, transfer, or delegation without Purchaser’s consent shall be void and shall constitute a breach of this Purchase Order by Vendor. This Purchase Order shall be binding on, and inure to the benefit of, the parties and their successors and permitted assigns. If any part or provision of this Purchase Order is determined to be invalid or unenforceable, the remainder of this Purchase Order shall be enforceable and shall in no way be invalidated. No failure by Purchaser to demand strict compliance with all of the requirements of this Purchase Order (including, without limitation, any acceptance by Purchaser of nonconforming Merchandise or delayed deliveries) or to exercise any rights or remedies provided under the provisions of the Purchase Order or otherwise available to Purchaser, shall constitute a waiver by Purchaser of its right to demand strict compliance with such requirements or to exercise such rights and remedies to their full extent in connection with any subsequent failure of Vendor to comply with the requirements of this Purchase Order, whether similar or dissimilar in nature to the prior failure. All provisions of this Purchase Order which may reasonably be interpreted or construed as surviving the completion, expiration, termination, or cancellation of this Purchase Order, including Sections 1 through 13, inclusive, shall so survive. No remedy conferred upon or reserved to the Purchaser under this Purchase Order is intended to be exclusive of any other remedy under this Purchase Order or by law, but each shall be cumulative and shall be in addition to every other remedy given under this Purchase Order or now or hereafter existing at law or in equity.



13.3 Vendor shall accept each Purchase Order by clicking on the “accept” button in the electronic PO delivery system (“Signature”). Vendor agrees that any such Vendor Signature in the PO or in any transmitted document shall be sufficient to verify that Vendor accepts such document.

14. TIME OF THE ESSENCE

Time is of the essence in respect to all provisions of this Purchase Order.

* * *



VENDOR CODE OF CONDUCT AND ETHICS

Foreign Corrupt Practices Act

Cost Plus Management Services, Inc. (“Cost Plus”) , Inc. requires full compliance with the Foreign Corrupt Practices Act (FCPA) by all of its employees, vendors, agents, and contractors. The anti-bribery and corrupt payment provisions of the FCPA make illegal any corrupt offer, payment, promise to pay, or authorization to pay any money, gift, or anything of value to any foreign official (including any officer, employee, or agent of a foreign government, department, agency, or state-owned or state-controlled enterprise; and any official, employee, or agent of a public international organization such as the World Bank or the United Nations); any foreign political party, candidate or official; or any person for the purpose of: influencing any act or failure to act, in the official capacity of such a foreign official or party; or inducing such a foreign official or party to use influence to affect a decision of a foreign government or agency, in order to obtain or retain business for anyone, or direct business to anyone, or to obtain a competitive advantage. “Anything of value” includes not only funds and gifts but also such things as travel, meals, entertainment, lodging, offers of employment, or contributions to an official’s favorite charities. Note that an offer to make a corrupt payment is a violation, as is an offer or payment even if the business or competitive advantage is not actually obtained, retained, or directed as a result of the offer or payment.

All Cost Plus employees, agents and contractors whether located in the United States or abroad, are responsible for FCPA compliance and the procedures to ensure FCPA compliance. All managers and supervisory personnel are expected to monitor continued compliance with the FCPA to ensure compliance with the highest moral, ethical and professional standards of the Company. FCPA compliance includes the Cost Plus policy on Maintaining and Managing Records in Section III.I of this Code of Business Conduct and Ethics. Laws in most countries outside of the United States also prohibit or restrict government officials or employees of government agencies from receiving payments, entertainment, or gifts for the purpose of winning or keeping business. No contract or agreement may be made with any business in which a government official or employee holds an interest of 5%, without the prior approval of the Cost Plus Chief Financial Officer, who may be contacted at [email protected].

Selecting Vendors

Cost Plus Vendors make significant contributions to our success. To create an environment where our Vendors have an incentive to work with Cost Plus they must be confident that they will be treated lawfully and in an ethical manner. Cost Plus policy is to purchase supplies based on need, quality, service, price and terms and conditions. Cost Plus policy is to select significant Vendors or enter into significant Vendor agreements though a competitive bid process where possible. Under no circumstances should any Cost Plus employee, agent or contractor attempt to adversely coerce vendors in any way.

Prohibition of Inducements – Payments and Gifts

Under no circumstances may agents, vendors or contractors offer to pay, make payment, promise to pay, or issue authorization to pay any money, gift, or anything of value to Cost Plus employees, agents, vendors, consultants, etc. that is perceived as intended, directly or indirectly, to improperly influence any business decision, any act or failure to act, any commitment of fraud, or opportunity for the commission of any fraud. Conversely, under no circumstances may agents, vendors, contractors or Cost Plus employees accept any offer, payment, promise to pay, or authorization to pay any money, gift, or anything of value from customers, vendors, consultants, etc. that is perceived as intended, directly or indirectly, to influence any buying decision, any act or failure to act, any commitment of fraud, or opportunity for the commission of any fraud. Inexpensive gifts, infrequent business meals, celebratory events and entertainment, provided that they are not excessive or create an appearance of impropriety, do not violate this policy. Any transfer by payment or gift that exceeds $250 in value to any single recipient requires the advanced written approval of Cost Plus.

Approval or any questions regarding whether a particular payment or gift violates this policy should be directed to vendor relations at [email protected] or telephone our Hot Line at 1-800-824-7103.



When you call the Hot Line, regardless of the hour of the day, you will speak with a Communication Specialist of Pinkerton Compliance Services who will focus on obtaining all of the facts of the situation. You may remain anonymous if you wish and all information will be handled as confidentially as possible and will be investigated discreetly, to the extent consistent with a full and complete investigation.

SOCIAL COMPLIANCE POLICY

We are committed to ethical and responsible conduct in all of our operations, respect for the rights of all individuals, and respect for the environment. All merchandise provided by our vendors must be manufactured in compliance with the provisions of our Social Compliance Policy and therefore must meet the following minimum criteria:

� Child Labor, Involuntary Labor: Vendor must be in compliance with all current, or later adopted, applicable laws, rules, and regulations of the exporting country and of the territory in which the Merchandise is produced, including those governing the use of child labor, and/or governing the importation of Merchandise produced with child labor into the United States. In addition, no prison, forced, indentured, or bonded labor may be utilized in the production of any Merchandise. No employee shall be subject to physical, sexual or psychological harassment or abuse or cruel or unusual disciplinary practices. Vendor hereby certifies that the materials incorporated into Merchandise provided to Purchaser comply with laws regarding slavery and human trafficking of the country in which Vendor is doing business.

� Health and Safety: Vendor will provide employees with a safe and healthy workplace in compliance with good industry practices and all current, or later adopted, applicable laws, rules, and regulations of the exporting country and of the territory in which the Merchandise is produced. Vendor will also confirm that the same standards of health and safety are applied in any housing that it provides for employees.

� Freedom of Association: Vendor shall recognize and respect the right of employees to freely associate in accordance with the laws of the countries in which they are employed.

� Nondiscrimination: Vendor shall not subject any person to unlawful discrimination in employment, including hiring, salary, benefits, advancement, discipline, termination or retirement.

� Compensation: Vendor will, at a minimum, comply with all current, or later adopted, applicable wage and hour laws, rules, and regulations of the exporting country and of the territory in which the Merchandise is produced, including those relating to minimum wages, overtime, maximum hours, piece rates and other elements of compensation, and provide legally mandated benefits.

� Overtime: Vendor shall not require their employees to work more than the limits on regular and overtime hours allowed by the law of the country of manufacture. Except under extraordinary business circumstances, employees shall be entitled to no less than one day off in every seven-day period. Vendor must inform its workers at the time of their hiring if mandatory overtime is a condition of their employment. Vendor shall not compel its workers to work excessive overtime hours.

� Protection of the Environment: Vendor will comply with all current, or later adopted, applicable laws, rules, and regulations and good industry practices relating to the environment of the exporting country and of the territory in which the Merchandise is produced.

� Monitoring: Vendor will measure, monitor, report, and verify compliance with the foregoing requirements for both itself and its suppliers and other subcontractors. Purchaser shall have the right to conduct periodic on-site visits for the purposes of inspecting working conditions and conducting audits of production records, practices, and compliance with this Social Compliance Policy. Purchaser may, from time to time and at any time, require a written acknowledgement from Vendor of compliance with this Social Compliance Policy.

� Notice: Vendor shall promptly notify Purchaser in writing of any failures to comply with this Social Compliance Policy.



� Termination: Purchaser will not tolerate violations of this Social Compliance Policy and reserves the right to terminate its business relationship with Vendor if Vendor or its suppliers violate this Social Compliance Policy.



Cost Plus Management Services, Inc.

CONTACT LIST

Contact Phone Fax Email Corporate Office 510-893-7300 510-893-3681 first name.last [email protected] 200 Fourth Street Oakland, CA 94607

Sample House 201 Second Street Oakland, CA 94607 Stockton, CA 209-982-1244 209-234-6515 N/A

Distribution Center (SDC #901)

1735 Zephyr Street Stockton, CA 95206 Windsor, VA 757-242-9930 757-242-6984 N/A

Distribution Center (VDC #909)

Shirley T. Holland Industrial Parkway 12300 Dominion Way Windsor, VA 23487

Domestic Logistics Dept.

Inbound Logistics (WA, OR, CA) 209-982-1244 x7038 [email protected] Inbound Logistics (all other states) 209-982-1244 x7040 [email protected] Logistics Supervisor 209-982-1244 x7025 [email protected] Logistics Manager 209-982-1244 x7062 [email protected]

Import Logistics Dept.

Manager, Int’l Logistics 510-893-7300 x3156 510-893-3776 [email protected] Manager, Customs 510-893-7300 x3273 510-893-3776 [email protected] Manager, C-TPAT Compliance 510-893-7300 x3354 510-893-3776 [email protected]

Invoices / Accounting

Manager, Accounts Payable 510-893-7300 x3065 510-763-5564 [email protected] GT Nexus / EDI [email protected] Vendor Compliance [email protected] Quality Assurance [email protected] Packaging [email protected] Product Labeling [email protected]