SPECIALTY CARDS & WRAP PROCEDURE – OCT 08

Koala will no longer provide specialty stock on consignment, but the distributor still doesn’thave to pay the account until the same date as it was on consignment.

NSM to allocate stock and send to distributors per attached schedule.

1. Koala will invoice in normal manner with the due date as per attached schedule.

2. Distributors to advise admin@koala the stock collected after the event as per the attached schedule. They are also to complete collection form for this product. See attached.

3. Warehouse is to ensure stock collected and returned within 10 days.

4. Distributors are now aware of the amount due to Koala, original allocation minus collected stock.

5. Warehouse will have 5 days to confirm stock returned.

6. Admin to credit stock returned against original specialty invoice.

7. Distributors to pay amount on due date.

8. Any stock collected after due date is not be placed in racks the next year, distributors obligation is to collect all specialty stock. Only the current year titles can appear in spinners. Any cards collected after cut off are to be destroyed at distributor expense.

9. The following year only new titles will be sent and the distributors will never carry over specialty product.

SPECIALTY CARDS & WRAP PROCEDURE – OCT 08

10. From Valentines Day 2009 all allocated stock will be invoiced.

11. Any residual stock distributor’s have from previous year is to be placed on racks and on collection returned with all Valentines stock. This will also apply for Easter and Mothers day 2009.

12. Koala will raise an invoice for SOH as advised plus any new allocated stock.

13. Koala will credit all returned stock that is sent within the designated timelines.

SPECIALTY PROCEDUREEXISTING STOCK FROM PREVIOUS YEAR

• Stock is to be included in allocation to stores with new titles.

• At completion of event all stock is to be boxed

Responsibility W'house Distributors Distributors Distributors Distributors Admin Distributors

12-June-2009 22-June-2009 25-June-2009 03-July-2009Mothers' Day10 May 2009

9/03/2009 to

3/04/200915-April-2009 11-May-2009

15-May-2009 25-May-2009 01-June-2009 05-June-2009Easter

10th April 2009

26/01/2009 to

13/02/200916-February-2009 14-April-2009

20-March-2009 30-March-2009 06-April-2009 10-April-2009Valentine's Day

14 Feb 2009

24/11/2008 to

12/1208826-December-2008 15-February-2009

06-February-2009 16-February-2009 23-February-2009 27-February-2009Christmas

25 Dec 2008

8/09/08 to

19/09/0829-September-2008 26-December-2008

10-October-2008 20-October-2008 25-October-2008 30-October-2008Fathers' Day7 Sept 2008

14/07/08 to

31/07/0804-August-2008 08-September-2008

SPECIAL OCCASION PROGRAM 2008 - 2009

OCCASIONAllocation

Initial Placement in Retailers Racks -

Timing

Removal from Retailers Racks -

Timing

Details by product of stock collected &

collection sheet

Stock returned to Koala warehouse

by

Credit stock returned

Invoice Payment - Timing