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Vendor Guidelines & SOP’sboom! LLC & Affiliate Companies

Purpose:The intent of this document is to outline the Standard Operating Procedures (SOP) for all component / raw material vendors conducting business with boom! LLC, and its affiliate companies Big Bang Studio LLC, and New Sunrise Beauty Studio LLC.

This document will detail the vendor qualification procedure, quotation process, forecast review, boom purchase orders, packaging requirements, QA requirements, shipping requirements and invoice remittance process. It will also cover the procedures for mold/tooling PO acceptance and payment terms.

All vendors must follow these procedures to ensure smooth transaction, efficient material shipment, goods receipt and timely payment of invoices.

Failure to comply with these procedures will cause delay in payment and potential financial penalty in the event of breach of supply.

Any questions or for further information please contact boom!’s Purchasing Department. See Appendix A.

Quotation/RFQ Process1. All vendors must use the approved boom! Request For Quotation form (RFQ) to submit all

quotations2. Vendors must fill out all indicated fields. Failure to do so may void your RFQ. Minimum

information needed is: pricing, quantity breaks, minimum order quantity (MOQ), lead-times, daily or weekly rate of production, tooling, and FOB point.

3. All molds and/or tooling quotations must be on this form also4. Unless otherwise agreed to the terms and condition (ie. Annual pricing) will be enforced at all

times.5. Any changes or modifications to a submitted RFQ must be approved by Purchasing.6. All RFQ forms must be sent to the Purchasing as well as Packaging team.

Molds & Tooling:1. All molds, decoration tools and fixtures must be quoted on our RFQ and must contain the proper

level of details (i.e. 2 molds x 6 cavities or 3 SS print plates etc)2. All molds/tooling cost must be approved by boom! Purchasing and Packaging Departments.3. boom!’s payment terms for all molds and tooling are as follows: Net 45 Days; 1/3 with start of

mold, 1/3 with unit qualification, 1/3 with completed qualified mold/tool, unless otherwise specified.

4. Mold/tool pricing will be per RFQ, no other changes or modifications will be accepted, unless previously agreed.

/tt/file_convert/5b8b883409d3f222638b8c71/document.docDocument Owner: boom! Purchasing Original Issue: 1/5/09

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Copy, Print, Size Critical Component Vendors1. Any vendor providing printed, copy or die cut components to boom! must provide blue

lines/proofs for approval by the appropriate Packaging Development Person.2. Die lines must be submitted at least 3 weeks before production begins. 3. The Package Developer must provide an approved, signed and dated copy back to the vendor at

least 2 weeks before production begins.4. It is the vendors’ responsibility to make sure they have the proper approval prior to starting

production. Any production made without proper approval will be the vendor’s responsibility.

Quality (Packaging Components except Corrugate)

1. For each shipment to boom, a boom! Certificate of Conformity and 12 pre-shipment samples of each component for each replenishment order are to be sent via overnight delivery for QA release of the production shipment. The pre-shipment samples are to be sent to the issuing purchasing agent for coordination with QA. It is the shipping vendor’s responsibility to send CoC documents and pre-shipment samples in advance of shipments. These activities must be scheduled in a timely manner to ensure goods are received on the requested PO delivery dates. (A co-shipment sample may be sent if authorized by the Purchasing Agent.) All costs related to the processing of CoC samples is a “cost of doing business” and must be covered by your unit pricing to boom! Failure to submit a CoC document and samples may result in a $250 charge back per occurrence

2. boom ICCL (Item Conformance Checklist) identifies the AQL levels and attributes that boom uses to maintain acceptable quality and resolve disputes. See Appendix C.

Quality (Fragrance Oil / Solution / Raw Materials)1. Fragrance House / Raw Material vendors will follow boom Product Development pre-shipment

approval process.

Regulatory1. boom requires all vendors to comply with CONEG and Toxics in Packaging Clearinghouse

(TPCH) legislation for Heavy Metals in Packaging. Please reference Appendix E Heavy Metals Certificate of Conformance on page 9 of this document.

2. When producing materials for boom licensed brands (Disney, Nickelodeon, etc) and sold through Wal-Mart, for children age 12 and under, various test protocols will be required as part of the development process. These tests will be outlined by Package Development for each project. It is boom’s policy that the producing supplier is responsible to pay all outside testing costs. This is a “cost of doing business” and is yours to bear.

3. Please refer to Appendix D for boom’s Restricted Substance List (RSL) for items that must not be used in any boom packaging.


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Domestic Logistics1. Always contact Mode Transportation Services, 215-766-3080, Ursula DiCaro,

[email protected] to coordinate domestic transportation. Mode handles domestic freight and from our suppliers to our contract manufacturers.

2. Suppliers can offer and utilize their own trucks and or transportation service, but these need to be defined and approved by Purchasing and Accounts Payable (A/P). If a domestically produced item is quoted delivered, then freight carriers can be selected by the suppler without Purchasing Agent approval.

3. Carton labeling must accurately display: Vendor name, PO #, item number, item description, quantity shipped and lot number. The item number and item description must match the information listed on boom’s Purchase Order of Work Order… no exceptions are permitted.

4. Palletizing: All shipments must be palletized using standard 48x40 pallets in good condition. Pallets must be loaded on a trailer with the largest opening on the pallet facing the trailer door(s). SIDE LOADING OF PALLETS IS PROHIBITED.

5. Vendors must maintain proper shipping documents (i.e. COD, signed BOL) in case of future verification needs.

6. Vendors are responsible to provide a proper shipping format (i.e. Inner pack, shipper) that adequately protects goods during transit. Each pallet must be secured with stretch wrap to avoid shifting and toppling during transit.

International Logistics1. boom’s preferred terms are FOB Port. Freight terms must be clearly listed on the RFQ. This

should include FOB Port, estimated freight cost etc. Guide to Incoterms: 2. For ocean and air transportation into or leaving the USA boom’s primary freight forwarder is

Active Freight & Logistics; our secondary provider is ASAP Logistics. Please check with your Purchasing or Planning manager for logistics provider selection. See Appendix B below for contact information.

3. boom is a certified member of the US Customs & Border Patrol C-TPAT (Customs-Trade Partnership Against Terrorism) program. Consequently, it is vitally important that all international partners in our supply chain demonstrate that adequate supply chain security measures are in place in their facilities. New international suppliers/factories must complete and sign the Appendix F attachment and return it to their Purchasing Agent.


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Purchase Order:1. Vendors will use boom’s Purchase Order as confirmation to start production and ship product per

terms and conditions on PO, unless notified otherwise by the Purchasing department2. PO pricing will be based on submitted RFQ’s. RFQ pricing will constitute fixed annual pricing for

any/all new launch programs3. Never start production unless final print / design approvals have been submitted by packaging.4. boom Regular Business Purchase Orders and Work Orders will be shipped with a quantity

tolerance of -0% / +3%. Promotional Purchase Orders & Work Orders will have a quantity tolerance of -0% / +0%.

5. If delivery date will be other than the noted ‘PO Due Date’ by +1 / -3 days, then the vendor must notify boom! Purchasing to receive approval and to revise the PO Due Date.

Purchase Order Status Report:1. The supplier will provide the Purchasing associate with a weekly status report on all open orders2. If there are any drastic changes (+1 / -3 days or more) to the Weekly Status or Open Order

Report, the vendor must call the appropriate Purchasing associate to discuss the changes. The vendor must not depend on email alone!

3. It is the vendor responsibility to clearly communicate any major out of stock or delayed (+1 day) shipments to boom’s Purchasing Department.

4. The Purchasing associate will either accept or reject revised date. It is the suppliers’ responsibility to ensure that original due date is achieved.

5. In the event that air freight is required, the vendor if at fault will be responsible for all cost. If boom! is to pay for air freight, approval by boom Sr. VP Operations is required.

Receiving:1. boom! will enter all receipts into our financial systems within 24 hrs of receiving the receiver

document.2. In situations where our shipping terms are FOB Port or Ex-works factory then boom will enter

receipts at the time we take title to the goods.3. In the event that shipping confirmation is needed, the shipping vendor will supply boom!’s AR

department all relevant information. This may include: Proof of Delivery, signed BOL, Packaging Slip etc.

Invoicing:1. It is the vendor’s responsibility to ensure that invoice dates correspond to the PO due date.2. boom!’s payment terms are Net 45 days, unless otherwise noted.3. All invoices must contain: Vendor name, PO #, item number, description, quantity shipped,

remittance address, payment terms etc.4. Pallet / Carton labeling must accurately display: Vendor name, PO #, item number, description,

quantity shipped.5. Vendor must maintain proper shipping documents (i.e. COD, signed BOL) in case of future

verification needs.6. All invoices must contain: Vendor name, PO #, item number, item description, quantity shipped,

remittance address, payment terms etc.7. Boom!’s Remittance Address and AP Associate are:

boom! Creative Development, LLC800 3rd AvenueNew York, NY 10022-7601

Boom AP Auditor: Linda Yuan-Chen646-218-0754


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Appendix

Appendix A. Purchasing / Package Development / Engineering / QA Contacts:

Name Title Phone # e-mailGus Davis EVP Operations 646-218-0760 [email protected]

Marc DeGaetano Director Package Dev. 646-218-0766 [email protected]

Jessica Kolb Mgr. QA & Pkg. Eng. 646-218-0777 [email protected]

Rob Lynch EVP QA & Eng. 646-218-0758 [email protected]

Craig Poyser Sr. Mgr. Package Dev. 646-218-0788 [email protected]

Teddy Puk Sr. Mgr. Purchasing 646-218-0781 [email protected]

Stephen Pulisciano Director QA & Pkg. Eng. 646-218-0778 [email protected]

Doug Silady Sr. VP Package Dev. & Eng. 646-218-0756 [email protected]

Barbara Wise Director Purchasing 646-218-0767 [email protected]


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Appendix B. International Freight Contacts:

Primary: Active Freight & Logistics:

Pearl River, NY – Robert DietzelActive Freight & LogisticsOne Blue Hill Plaza8th FloorPearl River, NY 10965845-732-8883 (Direct)845-641-1378 (Cell)845-735-3546 (Fax) [email protected]

Hong Kong – Amy LiOrient Star Transport International Ltd.Room 8-10, Ever Gain Plaza, Tower 188 Container Port Road, Kwai Chung, N.T. Kowloon, Hong Kong(852) [email protected] Ada ChanOrient Star Transport International Ltd.Room 8-10, Ever Gain Plaza, Tower 188 Container Port Road, Kwai Chung, N.T. Kowloon, Hong Kong(852) [email protected]

Taiwan –

Winnie ChungUSA / America Sea Freight Dept.Orient Star Transport Int'l Ltd.5th Fl., No.61, Sec. 3, Nanking E. Road,Taipei, TaiwanTel : 886-2-25067088 Ext. 348 & 310Fax : 886-2-25067207Skype account: OSTTPE_WINNIEE-mail: [email protected]

Secondary: ASAP Logistics:

Debbie CrossManaging Director

(718) 995-5547 direct(917) 951-8869 mobile(718) 995-5540 fax

[email protected]://www.asaplogistics.com

148-05 175th StreetJamaica, NY 11434


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Appendix C. Item Conformance Checklist (ICCL) - Descriptions

Commodity ICCL # Title

Brush 20 Brushes

Actuator 21 Actuators

Bottle 22 Glass Bottles

Bottle 23 Plastic Bottles

Bottle 24 Decoration and Coating on Plastic and Glass (Hot Stamping, Silk Screening, Metalizing, Frosting and Coating)

Cap 25 Plastic Screw Caps

Cap 26 Compression Molded Caps and Jar Covers

Cap 27 Plastic Valve Seal With Hinged Plug Dispenser

Cap 28 Metal Trifoil Cap

Cap 29 Aerosol Dust Cap (Metal With Ribbed Plastic Insert)

Cap 30 Cap With Aluminum Over shell Assembly

Cap 31 Polypropylene "Living Hinge" Cap

Cap 32 Plastic Formed Over cap Assembly

Cap 33 Plastic Formed Over cap (PP) Metalized

Cap 34 Metal Screw Cap

Carton 35 Folding Cartons, Packers, Sleeves (Paper & PVC) and Product

EnclosuresContainer 36 Plastic Containers

Container 37 Metal Containers

Corrugate 38 Corrugate (Dividers, Pads, Master Shipper)

Disc 39 Plastic Film Disc

Drum 40 Paper/Transparent Bottom Chip Board Plug Drum for Loose Powder

Fitment 41 Injection Molded Shaker Talc Fitment For Use With Aluminum Can

Jar 42 Singe/Double Wall Jar

Label 43 Pressure Sensitive Labels

Liner 44 Liners (Single, Double Face Fluted Liners)

Platform 45 Vacuum Formed Platform

Plug 46 Plug

Puff 47 Puffs (Velour, Lambs Wool, Acrylic, or Polyurethane)

Pump 48 Pumps-Lotion

Pump 49 Pumps-Natural Spray

Set-up Box 50 Set-Up Boxes, Covers, or Inserts

Tube 51 Collapsible Plastic Decorated Tubes (Caps not Metalized)

ICCL Details:


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Appendix D. Heavy Metals, Phthalates & Restricted Substances Certificate of Compliance

Supplier’s signature on this document acknowledges receipt, acceptance and compliance with boom! Creative Development’s Packaging Regulatory Guidelines stated below:

Toxics in Packaging Clearinghouse (TPCH) legislation for Heavy Metals in Packaging : We certify that all packaging and packaging components sold to boom! Creative Development or its subsidiaries comply with the requirements of the toxics in packaging law(s). Specifically:

1. We certify that the regulated metals – lead, mercury, cadmium, and hexavalent chromium -- were not intentionally added to any package or packaging component during the manufacturing process.

2. We further certify that the sum of the incidental concentration levels of lead, mercury, cadmium and hexavalent chromium present in any package or package component does not exceed 90 parts per million by weight.

3. We will submit actual 3rd party Independent laboratory test results (according to ASTM test method E1613-04) to boom! Creative Development at our expense.

4. We will maintain adequate documentation of this certification for inspection upon request

Restricted Substance List for Plastic Materials: We certify that all items manufactured for and sold to boom or its subsidiaries do not contain the following phthalates: DEHP, DBP, BBP, DINP, DIDO, DnOP. We further certify that any molded items with intended use as drinking utensils do not contain Bisphenol A (BPA).

CPSIA (Consumer Product Safety Improvement Act): When packaging materials and components are designated for use in products marketed to children, age 12 and under, you will be notified by a boom package development associate. CPSIA law requires that a CPSC certified lab must conduct testing for lead and phthalates. Plastic materials made for boom

1. We will submit CPSC Certified lab test results to boom! at our expense.

__________________________________________________________________________________

Name (Printed):

Signature:

Title:

Date:

Company:

Please e-mail a signed copy of this document to Gus Davis and your Purchasing [email protected] [email protected]@boomllc.com


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Appendix E. Confirmation of Vendor Guidelines & Code of Conduct Receipt

Vendor Name(Print or Type):

Name & Title of Representative(Print or Type):

Signature of Representative:

Date:

Please e-mail this completed page to Gus Davis and your Purchasing Manager:[email protected] [email protected]@boomllc.com


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Appendix F. C-TPAT Security Questionnaire:

Please e-mail a completed signed C-TPAT Questionnaire to Gus Davis and your Purchasing [email protected] [email protected]@boomllc.com

Appendix G. Vendor Code of Conduct


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