IMAX VENDOR COMPLIANCE MANUAL TABLE OF CONTENTS

ACKNOWLEDGEMENT OF VENDOR COMPLIANCE MANUAL INTRODUCTION HOW TO USE THIS MANUAL 1. CONDITIONS OF IMAX PURCHASE ORDER COPYRIGHT / TRADE MARK WARRANTIES COUNTRY OF ORIGIN VARIANCES COMPLIANCE WITH APPLICABLE LAWS EMPLOYMENT ORDER FULFILLMENT AND CYCLE TIME CBM AND PACKING DISCREPANCIES 2. NEW VENDOR SET-UP 3. PURCHASE ORDER FULFILLMENT QUOTATIONS NEW ITEM SPECIFICATION SHEET PURCHASE ORDERS SHIPMENT TYPES SALES CONFIRMATIONS 4. SAMPLE SHIPMENTS COUNTRY OF ORIGIN LABEL SAMPLE CARTON MARKINGS SAMPLE PACKING COMMERICIAL INVOICE SAMPLE PAYMENT POLICY PRODUCTION COUNTER SAMPLE LATE SHIPMENT OF SAMPLES 4 5 5 6 6 6 7 8 8 8 9 9 10 11 11 11 11 12 12 14 14 14 14 14 15 15 15

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5. SUPPLY CHAIN SECURITY REQUIREMENTS U.S. CUSTOMS BORDER AND PROTECTION (CBP) MINIMUM SECURITY REQUIREMENTS 6. SHIPPING OF IMPORT PRODUCT ROUTING SHIPPING OUTSIDE OF THE PURCHASE ORDER SHIP WINDOW CONTAINER LOADING DOCUMENT DISBURSEMENT 7. ISF 10 + 2 SECURITY FILING 8. CARTON MARKING REQUIRED INFORMATION FOR MASTER PACK CARTON REQUIRED INFORMATION FOR INNER CARTON CARTON PRINTING FOR LICENSED BRANDS COUNTRY OF ORIGIN LABEL IMAX UPC BAR CODE LABEL LABELING CANDLEHOLDERS LABELING COPYRIGHT ITEMS LABELING ELECTRIC LAMPS FDA WARNING LABELING GARDEN OR OUTDOOR USE PRODUCTS POLY BAGS: SUFFUCATION WARNING 10. PACKAGING INSTRUCTIONS ASSEMBLY INSTRUCTIONS / HARDWARE PACKING MATERIAL CARTON REQUIREMENTS SEALING CARTONS 11. PRODUCT DESIGN AND TESTING REQUIREMENTS GENERAL CANDLE TESTING SHELVES TEXTILES SEATING BEDDING AND UPHOLSTERED FURNITURE TABLEWARE CONSUMER PRODUCT SAFETY IMPROVEMENT ACT 2008 (CPSIA) COMPLIANCE CARB CALIFORNIAS FORMALDEHYDE AIR TOXIC CONTROL MEASURE 12. PROTECTIVE DESIGN REQUIREMENTS FOR HOME ACCENTS

16 16 21 21 21 21 22 25 27 27 27 27 30 30 30 31 31 31 31 32 33 33 33 36 37 38 38 39 39 39 40 41 42 43 44

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DESIGN AND PROTECTION SPECIFICATION 13. IMAX QUALITY CONTROL INSPECTIONS 14. VENDOR CLAIMS / CHARGEBACK POLICY

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Acknowledgement of Vendor Compliance Manual

It is hereby acknowledged that the undersigned agrees to comply with the requirements as outlined in the IMAX Corporation Vendor Compliance Manual. All purchase orders must be shipped in conformance to the guidelines set out in this manual. If purchase orders are shipped in any manner not in compliance with the IMAX Corporation Vendor Compliance Manual, the vendor will be held responsible for all expenses incurred by IMAX Corporation as a result of the non-compliance issue. Please acknowledge your understanding by legibly completing this form, signing where indicated and returning to IMAX Corporation.

Company Name: Authorized Signature: Date:

_____________________________________________ _____________________________________________ _____________________________________________

Please sign the completed form and return to Vendor Compliance Department: Fax: 918-250-1326 or E-Mail: tera@imaxcorp.com; llippold@imaxcorp.com

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Introduction
How to use this manual
This manual is provided as an overview of the basic requirements related to merchandise quality, packaging, labeling, distribution, transportation, accounts payable, and to address specific information and reference material. The following pages identify the expectations and requirements IMAX has for our suppliers, as well as the cycle time definitions and improvement objectives.

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1. Conditions of IMAX Purchase Order

Copyright / Trade Mark
Seller agrees to defend, indemnify and keep harmless IMAX, its agents and employees from any and all liability, loss, damage and expense, including attorneys fees, which may or might be sustained or incurred because of the infringement by the goods supplied by the Seller under this Purchase Order of any patent, trademark, copyright, or claim thereof, or because of any claim or action against IMAX, its agents or employees on account of any alteration or other defective condition or any claim thereof, in any manner involving the goods hereby sold and purchased or any part thereof, or on account of any act of failure to act by Seller arising out of the services performed by Seller or any claim thereof, in any manner involving the goods hereby sold and purchased, or any part thereof, or on account of any failure to act by Seller arising out of the services performed by Seller, or any claim thereof, in any manner involving the goods hereby sold and purchased or any part thereof, except such claims and actions as arise by reason of unauthorized express warranties on part of IMAX, its agents and employees, and except such claims as are alleged by claimant to be due to the sole negligence of IMAX, its agents or employees; provided prompt written notice be given to the Seller of the bringing of any such claim or action, and an opportunity be given the Seller to settle or defend same as the Seller may see fit. In case any apparatus, or any part thereof, furnished under this contract is held to constitute infringement of any patent and the use of said apparatus or part is enjoined, the Seller shall, at its own expense, either procure for IMAX the right to continue using said apparatus or part; or replace same with non-infringing apparatus, or modify it so it becomes noninfringing, or remove said apparatus and refund the purchase price and the transportation and installation costs thereof. Nothing herein shall prevent IMAX from providing its own representation at its own expense in the event of litigation against IMAX.

Warranties
Compliance: Seller warrants that the Goods (including all related packaging, labeling and printed matter), and the manufacture, sales, safety and transportation of the Goods, and all representations, warranties and advertising made by Seller, or authorized by Seller to be made, in connection with the Goods, shall be in accordance with, comply with, and where required, be registered under, all applicable laws, regulations, standards, codes, orders and ordinances of the United States or any state or other subdivision thereof, including, without limitation: the Tariff Act of 1930; the Fair Packaging and Labeling Act; the Food, Drug and Cosmetic Act; the Federal IMAX VCM 2009 V.1 PAGE 6

Trade Commission Act; the Magnuson Moss Warranty Act; the Consumer Product Safety Act; the Flammable Fabrics Act of 1953; the Federal Hazardous Substances Act; the Fair Labor Standards Act of 1938; the Wool Products Labeling Act of 1939; the Textile Fiber Products Identification Act and the Fur Products Labeling Act; the United States Poison Prevention Packaging Act of 1970; the United States Child Protection and Toy Safety Act; International Trade in Endangered Species of Wild Fauna and Flora, as listed in the United States Endangered Species Act of 1973; and the United States Leachable Lead and Cadmium standards, California Proposition 65, California CARB Compliance, CPSIA, and all other applicable Federal Food and Drug Administration Standards. These warranties are in addition to all other express warranties and shall run to the benefit of and shall create direct rights of enforcement and remedy in Purchaser. The warranties of Seller here-under shall not be affected or limited in any way by Purchasers extension of express or implied warranties to its customers, except to the extent that any such warranties expressly extend beyond the scope of the Sellers warranties, express or implied, to Purchaser. None of the remedies available to Purchaser for the breath of any of the foregoing warranties may be limited except to the extent and in the manner agreed upon by Purchaser in a separate agreement specifically designating such limitation and signed by an authorized representative of Purchaser.

Country of Origin
Seller warrants that the Goods are manufactured in the country of origin stated on the commercial documents required for United States Customs entry. In the event Purchaser believes Goods to be in violation of transshipment regulations, Purchaser may cancel any order under this Contract, in whole or in part, and return the Goods to Seller, for a full refund of the purchase price (including all handling, transportation, shipping, and other cost incurred by Purchaser in connection therewith). In addition, Seller shall be liable for any penalties and/or fines resulting from breath of transshipment regulations, to the extent permitted by law, together with any costs, including attorneys fees incurred by Purchaser in defending against or responding to such charges. A certificate of origin, issued by the relevant authority in the origin country, shall be provided to IMAX as required shipping documents. Refer to ICC International Certificate of Origin Guidelines for more specific information.

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Variances
Unless authorized, no variances, regardless of industry standards, with respect to quality, quantity, size, capacity, volume, content or other standard measure of the Goods (including all related packaging, labeling and printed matter) are allowed. Seller shall assume responsibility for and indemnify Purchaser, to the extent permitted by law, against any fines, costs or expenses, including attorney fees, a) levied against Purchaser by any federal, state or local government, and/or b) incurred by Purchaser as a result of the variances.

Compliance with Applicable Laws

All vendors will comply with the legal requirements and standards of the industry under the national laws of the countries in which the vendor is doing business. Should the legal requirements and standards of the industry conflict, vendors must comply with the legal requirements of the country in which the products are manufactured. Vendors must comply with all import requirements of the U.S. Customs Services and all U.S. Government agencies.

Employment
At a minimum, IMAX expects vendors to meet the following requirements:

Compensation
Vendors shall fairly compensate their employees by providing wages and benefits, which comply with the national laws of the countries in which the vendors are doing business.

Hours of Labor
Vendors shall maintain reasonable employee work hours in compliance with local standards and applicable national laws of the countries in which the vendors are doing business. Employees shall not work more hours in one-week than allowable under applicable law, and shall be compensated as appropriate for overtime work. Employees should be permitted reasonable days off (which we define as meaning at least one day off for every seven-day period).

Forced / Prison Labor

IMAX will not purchase any products or materials for resale that are manufactured using child or forced labor. IMAX will not accept products from vendors who utilize forced labor or prison labor in manufacture or in their

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contracting, subcontracting, or other relationships for manufacture of their prodcuts.

Child Labor
IMAX will not tolerate the use of child labor. IMAX will not accept products form suppliers who utilize child labor in the manufacture or in the contracting, subcontracting, or other relationships for the manufacture of their products. No person shall be employed at an age younger that the law of the jurisdiction of manufacture allows.

Order Fulfillment and Cycle Time

All orders must be shipped complete and as ordered. Substitutions or mixing products from two or more orders to fill a container must first by authorized by IMAX Purchasing Department. IMAX will assign a ship date for each purchase order placed with the vendor. If the ship date is not able to be met, vendor must contact the buyer immediately and advise the reason for the delay. Because delays in shipment effect not only IMAX inventory availability but also our customers, it is critical that notification of any delay be communicated. All containers must be shipped full. If an order is placed by IMAX that does not fill a container, contact IMAX immediately to adjust quantities. IMAX will arrange bookings for all shipments. Assigned freight forwarders should be used for all shipments. The vendor should check the booking a week in advance to secure placement on the vessels.

CBM and Packing Discrepancies

All CBMs given to IMAX Corporation should be correct. IMAX freight costs and sales prices are based on these CBMs. After new item samples and prices have been confirmed, the CBM should never change. Any cost difference resulting from a CBM discrepancy after price confirmation will be the responsibility of the vendor. All master pack and inner carton quantities shall remain the same as original negotiation. The number of items shipping in a master pack or inner carton should never change without the written consent of IMAX Corporation. In the event an order is placed for a quantity that is not a multiple of the master pack quantity, vendor shall increase order quantity to nearest multiple of master pack.

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2. New Vendor Set-Up

All vendors must complete the following new vendor set-up forms:

Signed Acknowledgement of Vendor Compliance Manual Vendor Evaluation Form Supplier Profile Form New Vendor Contact Information Form Non-Infringement & Exclusivity Agreement Security Questionnaire
All vendor set-up forms must be completed accurately and submitted to IMAX prior to IMAX issuing any purchase orders to vendor. In addition, the Security Questionnaire must be submitted for the entity(s) that actually pack and ship IMAX product. This is typically the manufacturer of the product not a trading company. A completed security questionnaire must be submitted to IMAX prior to IMAX issuing any purchase orders to vendor. C-TPAT Certified Vendors may submit their business name, C-TPAT ID and VSI for verification. The Security Questionnaire is optional for C-TPAT Certified Vendors.

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3. Purchase Order Fulfillment

Quotations
A completed quote sheet with a color photo must be submitted to the appropriate buyer in order for your product to be selected for purchase. The quote sheet must be used for all import quoted product. All data must be accurately and completely. Incomplete quote sheets may be rejected by Buyer. It is imperitive that the buyer be provided with the accurate cube, weight, and pack information. This data is used to calculate estimated landed cost, margin, and routing. Any deviation from the information provided on the quote sheet to the actual shipment is subject to vendor chargeback.

New Item Specification Sheet

In addition to the initial quotation, a completed New Item Specification Sheet should be completed and returned to IMAX Corporation for each item selected for purchase by IMAX Corporation. This sheet contains detailed product specifications for each item. This form should be provided to the Assistant Buyer within 7 days of item selection. It is imperitive that the New Item Specification Sheet be completed accurately. This detailed product information is used for advertising and sales purposes. Any deviation from the information provided on the quote sheet to the actual shipment is subject to vendor chargeback.

Purchase Orders
IMAX purchase orders will be issued for shipments to its Tulsa, OK warehouse unless otherwise noted. The purchase order will be sent to you via e-mail. Vendor must confirm receipt of IMAX purchase order within 24 hours. This confirmation is an acknowledgement of receipt of the purchase order only. Upon review of the order, if any changes are required to the purchase order please contact the Buyer or Assistant Buyer immediately. Upon buyer approval of changes, the purchase order will be revised and resubmitted to vendor. Vendor will have 24 hours to confirm receipt of revised purchase order. IMAX purchase orders are typically issued in terms of FOB port of origin or consolidator warehouse at origin. Any other shipping terms must be approved by IMAX Logistics Department and IMAX Buyers.

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The purchase order is a valid contract between IMAX and the vendor. By confirming the purchase order vendor agrees to all IMAX terms and conditions as outlined in the IMAX Vendor Compliance Manual. Any shipment not in accordance with the purhcase order or IMAX Vendor Compliance Manual is subject to chargebacks as determined by Vendor Compliance Manager or Buyer. All Purchase Orders, Proforma Invoices, and Commercial Invoices shall reflect the negotiated cost approved by IMAX Buyer. At no time shall vendor change this cost without written Buyer approval. In the event goods are invoiced at cost higher than negotiated IMAX payment will be adjusted to reflect the negotiated cost.

Shipment Types
FOB Port of Shipment (FOB PORT)
Vendor tenders goods in FCL (Full Container Load) at port CY or port consolidator warehouse and pay for all expenses on FOB terms (ICC INCOTERMS 2000). There may be times that one container covers goods from multiple vendors. The vendor with most cargo typically consolidates goods from other vendors in the same container shipment.

FOB Consolidator Warehouse (FOB Consolidated)

Vendor tenders goods at nominated consolidator warehouse and pays for all expenses including container stuffing and export clearance on FOB terms (ICC INCOTERMS 2000) based on cargo volume or weight, whichever is appropriate.

Sales Confirmations
Within 72 hours of receipt of IMAX purchase order, a sales confirmation (ProForma Invoice) must be returned to the relevant Assistant Buyer at IMAX Purchasing Department. Any change to the initial purchase order is to be made prior to sending your sales confirmation (Proforma Invoice). The sales confirmation is a critical step for a successful import program and ensures all data is correct for both parties. This minimizes shipping delays, incorrect U.S. Customs entries and payment delays.

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All sales confirmation must correlate with the purchase order. Below is the required information on your Sales Confirmation.
IMAX PURHASE ORDER NUMBER (S) SHIP TO LOCATION SHIPPING WINDOW (NO LATER OR NO SOONER THAN) FOB ORIGIN PORT, COUNTRY VENDOR PART NUMBER IMAX SKU NUMBER DETAILED DESCRIPTION COLOR (IF APPLICABLE) UPC CODE CASE PACK COST QTY IN EACH TOTAL COST PER LINE AND PER PURCHASE ORDER PAYMENT TERMS APPLICABLE DEDUCTIONS AS PROVIDED IN YOUR PURCHASE ORDER

Upon completion of the purchase order and sales confirmation process, any additional changes must be requested in writing to the appropriate buyer and approval received in the form of adjusted purchase order prior to shipping.

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4. Sample Shipments
All sample shipments must first be approved by either the VP of Purchasing or the Logistics Manager. IMAX will choose the carrier for any cargo shipment in which IMAX will be responsible for freight charges.

Country of Origin Label

All sample items and cartons must also have a label stating the Country of Origin.

Sample Carton Markings

Factory Name
All cartons must be clearly marked with your factory name.

Item Number
Please reference assigned IMAX Item Number. If an IMAX Item Number has not been assigned please label each sample with your vendor item number.

Buyer Name
All sample cartons must be marked with the name of the buyer to review samples.

Sample Qty
All sample cartons must be marked with the number of units in each carton.

Sample Packing
All samples cartons should be packed with great care. IMAX will not be responsible for any broken samples resulting from insufficient packing for the mode of transportation intended. If required, the vendor shall pay for all freight cost associated with re-shipment of broken samples.

Commericial Invoice
Vendor must provide IMAX with a Commercial Invoice and Packing List for all shipments including sample inventory. Please refer to Section 6 for detailed instructions. When issuing the Commercial Invoice for any sample shipment, a cost must be listed for all items in the shipment. If any items are sent Free of Charge, the

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Commercial Invoice should show a line, after the original subtotal stating Samples Free of Charge with the total amount of all free samples listed.

Sample Payment Policy

Unless otherwise negotiated, the vendor will send 3 samples of each item free of charge. IMAX agrees to pay for all additional samples (excluding Production Counter Sample). Sample invoices will be paid at the time of shipment or according to established vendor payment terms. No samples will be paid in advance of sample production.

Production Counter Sample

Upon item selection, the vendor shall produce a counter sample to be used as reference by QC inspectors, buyers, and your productin team. This sample must be signed and dated by the buyer and shall serve as IMAX approval for future production quality. This sample shall be provided Free of Charge and stored at your facility.

Late Shipment of Samples

All IMAX sales are generated from the timely and accurate production of vendor samples. It is critical that all sample shipments be produced by the required ship date. Any potential delays in production must be immediately communicated to IMAX Buyer. Late sample shipments are subject to late penalty (minimum $100 per item). Additionaly, vendor may be required to air freight samples at their expense. IMAX reserves the right to cancel all item production if samples cannot be provided as agreed.

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5. Supply Chain Security Requirements

IMAX Corporation is participating in the U.S. Customs Trade Partnership Against Terrorism (C-TPAT) program. We have been accepted in this program and have received C-TPAT certification from Customs Border & Protection (CBP). IMAX is very serious about security issues within its supply chain process. In order to remain C-TPAT certified, IMAX Corporation is responsible for ensuring its business partner conduct meets or exceeds U.S. Customs minimum security requirement for all processes within our supply chain operations. Our suppliers and providers must establish minimum security procedures within its own facilities to safeguard shipments against terrorist activity. In order to be established as a vendor for IMAX Corporation, a validation of CTPAT certification or if not C-TPAT certified our security questionnaire must be completed in its entirety. C-TPAT requires that the importer enforce the following security requirements within its supply chain. All responses provided on the security questionnaire must be verifiable should an on-site validation visit occur.

U.S. Customs Border and Protection (CBP) Minimum Security Requirements

Security Procedures
All business partners that IMAX conducts import business with shall be required to complete a security questionnaire prior to doing business, unless such business is C-TPAT certified.

Container Security
Container integrity must be maintained to protect against the introduction of unauthorized material and/or persons. At point of stuffing, procedures must be in place to properly seal and maintain the integrity of the shipping containers. A high security seal must be affixed to all loaded containers bound for the U.S. All seals must meet or exceed the current PAS ISO 17712 standards for high security seals. For detailed information regarding PAS ISO 17712 standards, refer to web url www.brookseals.com for more information. Brookseals can also furnish PAS ISO 17712 standard seals should you need a source for these seals. Container Inspection Should you store containers at your facility, procedures must be in place to verify the physical integrity of the container structure prior to stuffing, to IMAX VCM 2009 V.1 PAGE 16

include the reliability of the locking mechanisms of the doors. A seven-point inspection process is recommended for all containers which must include inpection of: 1. Front Wall 2. Left Side 3. Right Side 4. Floor 5. Ceiling / Roof 6. Inside / Outside Doors 7. Outside / Undercarriage Container Seals For all containers that are sealed at the factorys facility, a high security seal must be affixed to all loaded containers bound for the U.S. All seals must meet or exceed the current PAS ISO 17712 standards. All foreign entities responsible for loading containers must have written procedures that stipulate how: 1. Seals are to be controlled and affixed to loaded containers. 2. To recognize and report compromised seals and/or containers to U.S. Customs and Border Protection or the appropriate foreign authority. Only designated employees should distribute contianer seals for integrity purposes. Container Storage Empty and loaded containers in your possession must be stored in a secure area prior to loading and delivering to the carriers container yard to prevent unauthorized access and/or manipulation. Verifiable procedures must be in place for reporting and neutralizing anauthorized entry into containers or container storage areas.

Physical Access Controls

Access controls prevent unauthorized entry to facilities, maintain control of employees and visitors, and protect company assets. Access controls must include the positive identification of all employees, visitors, and vendors at all points of entry. Employees An employee indentification system must be in place for positive identification and access control purposes. Employees should only be given access to those secure areas needed for the performance of their duties. Company management or security personnel must adequately control the issuance and removal of employee, visitor and vendor identification badges. Procedures for the issuance, removal and changing of access devices (example: keys, key cards, etc.) must be documented. IMAX VCM 2009 V.1 PAGE 17

Visitor Control Visitors must present photo identification for documentation purposes upon arrival. All visitors should be escorted and visibly display temporary identification. Deliveries (including mail) Proper vendor ID and/or photo identification must be presented for documentation purposes upon arrival by all vendors. Arriving packages and mail should be periodically screened before being disseminated. Challenging and Removing Anauthorized Persons Procedures must be in place to identify, challenge, and address anauthorized / unidentified persons. Personnel Security Processes must be in place to screen prospective employees and to periodically check current employees. Pre-Employement Verification Application information, such as employment history and references must be verified prior to employment. Background Checks / Investigations Consistent with foreign, federal, state, and local regulations, background checks and investigations should be conducted for prospective employees. Once employeed, periodic checks and reinvestigation should be performed based on cause, and/or the sensitivity of the employees position. Personnel Termination Procedures Companies must have procedures in place to remove identification, facility, and system access for terminated employees.

Procedural Security
Security measures must be in place to ensure the integrity and security of processes relevant to the transportation, handling, and storage of cargo in the supply chain. Documentation Processing Procedures must be in place to ensure that all information used in the clearing of merchandise / cargo, is legible, complete, accurate, and protected against the exchange, loss or introduction of erroneous information. Documentation control must include safegaurding computer access and information.

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Manifesting Procedures To help ensure the integrity of cargo received from abroad, procedures must be in place to ensure that information received from business partners is reported accurately and timely. Shipping and Receiving Arriving cargo should be reconciled against information on the cargo manifest. The cargo should be accurately described, and the weights, labels, marks, and piece count indicated and verified. Departing cargo should be verified against purchase or delivery orders. Drivers delivering or receiving cargo must be positvely identified before cargo is received or released.

Security Training and Threat Awareness

A threat awareness program should be established and maintained by security personnel to recognize and foster awareness of the threat posed by terrorists at each point in the supply chain. Employees must be made aware of the procedures the company has in place to address a situation and how to report it. Additional training should be provided to employees in the shipping and receiving areas, as well as those receiving and opening mail. Additionally, specific training should be offered to assist employees in maintaining cargo integrity, recognizing internal conspiracies, and protecting access controls. These programs should offer incentives for active employee participation. Physical Security Cargo handling and storage facilities in domestic and foreign locations must have physical barriers and deterrents that guard against unauthorized access. Importers should incorporate the following C-TPAT physical security criteria throughout their supply chains as applicable. Perimeter fencing should enclose the areas around cargo handling and storage facilities. Interior fencing within a cargo handling structure should be used to segregate domestic, international, high value, and hazardous cargo. All fencing must be regularly inspected for integrity and damage. Gates and Gate Houses Gates through which vehicles and/or personnel enter or exit must be manned and/or monitored. The number of gates should be kept to the minimum necessary for proper access and safety. Parking Private passenger vehicles should be prohibted from parking in or adjacent to cargo handling and storage areas.

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Building Structure Buildings must be constructed of materials that resist unlawful entry. The integrity of structures must be maintained by periodic inspection and repair. Locking Devices and Key Controls All external and internal windows, gates, and fences must be secured with locking devices. Management or security personnel must control the issuance of all locks and keys. Lighting Adequate lighting must be provided inside and outside the facility including the following areas: entrances, exits, cargo handling and storage areas. Alarm Systems and Video Surveillance Cameras Alarm systems and video surveillance cameras should be utilized to monitor premises and prevent unauthorized access to cargo handling and storage areas.

Information Technology Security

Password Protection Automated systems must use individually assigned accounts that require a periodic change of password. IT security policies, procedures and standards must be in place and provided to employees in the form of training. Accountability A system must be in place to identify the abuse of IT including improper access, tampering or the altering of business data. All system violators must be subject to appropriate disciplinary actions for abuse.

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6. Shipping of Import Product

IMAX Corporation import shipments are handled by its overseas forwarders. All requests for equipment and shipping are to be requested from our forwarder. Purchase orders are to be shipped complete at one time. Partial shipments are not permitted without prior approval from IMAX Corporation. Booking is to be done in ample time for shipment by the purchase order last ship date. Merchandise subsitutions are not permitted without prior approval from buyer and a revised purchase order issued and received by vendor. Any merchandise that is shipped but not on the purchase order will not be paid for and will not be returned to the vendor.

Routing
The routing of cargo and estimated freight has been determined based on the cube, weight and port provided on your quote sheet. If the information on your quote sheet is incorrect, our buyers must be notified as soon as the discrepancy is discovered. This includes but is not limited to inaccurate cubes, weight, shipping port, or pack information. Incorrect information for any of these factors can result in additional freight charges being incurred. Shipment is subject to a chargebacks as determined by Vendor Compliance Manager or Buyer.

Shipping Outside of the Purchase Order Ship Window

All purchase orders are to be shipped (on board the vessel) within the shipping window provided on your purchase order. Any request to ship merchandise earlier or later than the purchase order ship dates must be approved in writing from IMAX buyers. This information is to be requested as soon as it is evident that the ship date cannot be made or that goods will be ready to ship early. Requests should be made at least 7 days prior to the first or last ship date on the purchase order. Once shipping dates are approved a revised purchase order will be issued and sent to the vendor. Shipments are not to be made unless a revised purchase order has been received. Requests for early or late shipments are not to be requested from our forwarder. Our forwarder will not accept a booking that will place the goods on board the vessel outside of the purchase order shipping window.

Container Loading
When loading containers, it is imperative that the weight be evenly distributed from the nose to the tail of the container as well as evenly distributed over each axle. Failure to comply will result in chargeback.

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Vendors are responsible for blocking and bracing all loads that are not full to prevent damages. For C-TPAT security reasons, container must be inspected for false walls. Once the container has been received and prior to loading, a seven-point inspection process must be conducted (refer to Container Security Section). All containers destined for the United States must be sealed using a high security seal that meets or exceeds the current PAS ISO 17712 standards for high security seals. At no time shall vendor use seals that do not meet these standards.

Document Disbursement
Within 3 days of vessel sailing 1 complete original and 2 copy sets of required documents are to be tendered to our forwarder in exchange for the ORIGINAL Forwarders Cargo Receipt (FCR). These documents must be accurate and comply with your Purchase Order(s) as well as IMAX requirements as these documents are forwarded to our broker for U.S. Customs entry. Any document not provided to our forwarder within 3 days of the vessel sailing is subject to chargebacks. Once you have the ORIGINAL, signed forwarders cargo receipt an original set of documents can be forwarded to IMAX Logistics Department via an express courier service to begin the processing of your payment. Original Documents should be sent to IMAX Logistics Department within 10 days of actual shipment (email courier tracking number): IMAX CORPORATION ATTN: LOGISTICS DEPARTMENT 12502 E 55TH STREET TULSA, OK 74146 USA A copy of the documents should also be emailed to the Logistics Department within 2 business days. All import shipments require the following documents:

Commercial Invoice
Commercial Invoice must be in compliance with U.S. Customs regulation 141.86 as well as IMAX Corporation requirements. Commercial documents must match what has actually been shipped.

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The commercial invoice being presented for payment must show any applicable allowances that will be deducted from the gross amount of your invoice. These allowances must be labled on your commercial invoice. The commercial invoice must provide below details for each item:
IMAX ITEM NUMBER HS CODE (AT LEAST 6 DIGIT) FULL DESCRIPTION FOR US CUSTOMS UNIT PRICE QUANTITY LINE TOTAL IMAX ORDER REFERENCES TOTAL INVOICE AMOUNT APPLICABLE CREDIT

Please reference the Commercial Invoice Template for creation of your documents.

Packing List
The packing list must provide below details for each item:
PURCHASE ORDER NUMBER (if multiple purchase orders are being covered in one commercial invoice the packing list must clearly state the purchase order for each item.) GROSS WEIGHT PER ITEM NET WEIGHT PER ITEM TOTAL GROSS WEIGHT FOR ENTIRE SHIPMENT TOTAL NET WEIGHT FOR ENTIRE SHIPMENT TOTAL CUBIC MEASUREMENTS IN CBM FOR EACH ITEM TOTAL CUBIC MEASUREMENTS IN CBM FOR ENTIRE SHIPMENT MASTER PACK QTY INNER CARTON QTY

Please reference the Packing List Template for creation of your documents.

Certificate of Origin
Vendor should provide one original certificate of origin issued by the relevant agency in the country of export for each container shipment.

Statement of Quality Assurance

The manufacturer must provide a Statement of Quality Assurance to verify that they have taken all necessary steps to ensure the shipment is in compliance with IMAX requirements. At minimum the statement should include the following:
DATE OF INSPECTION

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IMAX PURCHASE ORDER NUMBER FORMAL STATEMENT THAT MANUFACTURER HAS PERSONALLY INSPECTED GOODS AND THE QUANTITY, QUALITY, AND CARTON MARKINGS ARE FOUND TO BE IN COMPLIANCE WITH IMAX CORPORATION REQUIREMENTS.

The Statement of Quality Assurance should not be confused with any Quality Inspection Reports given to vendor by IMAX Quality Control Inspector or IMAX Agents. This statement is soley a confirmation that vendor or manufacturer has taken active steps to ensure highest quality products and order compliance.

Forwarders Cargo Receipt (FCR)

An original FCR is required for all shipments booked or shipped by our forwarder. The original FCR is required in order for you to be paid. The original FCR will be issued once our forwarder has received original and 2 complete copy sets of accurate required documents. The original FCR will not be issued if documents are not in accordance with the IMAX Corporation purchase order, and/or the compliance manual. The original FCR should be completed in its entirety and signed by our forwarder. Payment will not be made from a non-negotiable forwarders cargo receipt (This may be referred to as Original House Bill of Lading).

Wood Packing Material

Any regulated wood packing material must be treated and marked with the IPPC mark in accordance with the regulation 7CFR319.40-3(b). IMAX Corporation is requiring a statement on the invoice:
SHIPMENT CONTAINS NO REGULATED WOOD PACKING MATERIAL

Or if regulated wood packing material is used a statement:

SHIPMENT CONTAINS REGULATED WOOD PACKING MATERIALS AND HAS BEEN TREATED AND MARKED WITH THE REQUIRED IPPC MARK

Statement of CARB Compliance

For shipments containing MDF products - a statement of CARB Compliance must be included with either the invoice or bill of lading. This Statement of Compliance must include the manufacturers name, the certification number of the third party compliance agency and the compliance standard met by the product. (Refer to Section 9, Product Design and Testing Requirements for more information related to CARB regulated product).

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7. ISF 10 + 2 Security Filing

On November 25, 2008, U.S. Customs and Border Protection (CBP) published an interim final rule entitled Importer Security Filing and Additional Carrier Requirements in the Federal Register (73 FR 71730). The interim final rule requires both importers and carriers to submit additional information pertaining to cargo to CBP before the cargo is brought into the United States by vessel. All IMAX vendors are required to work with our freight forwarders and/or their agents assigned to your account at all ocean ports or origin and provide the necessary information. Failure to comply, by fault of vendor, can result in financial penalty of up to $5,000. The following 10 elements are required to be submitted 72 hours prior to loading of USA bound vessel:

Manufacturer Name and Address

List all if more than one Name and address of the entity that last manufactures, assembles, produces, or grows the commodity or Name and address of the supplier of the finished goods in the country from which the goods are leaving.

Seller Name and Address

Name and address of the last known entity by which the goods are sold or agreed to be sold. If the goods are to be imported otherwise than in pursuance of a purchase, the name and address of the owner of the goods must be provided.

Container Stuffing Location

Name and address(es) of the physical location(s) where the goods were stuffed into the container. For break bulk shipments, the name and address(es) of the physical location(s) where the goods were made ship ready must be provided. The scheduled stuffing location may be provided. This may be the same name/address as the manufacturer (supplier). If a factory load, simply provide the name and address of the factory.

Consolidator Name and Address

Name and address of the party who stuffed the container or arranged for the stuffing of the container should be reported. For break bulk shipments, the name and address of the party who made the goods ship ready or the party who arranged for the goods to be made ship ready must be provided. If no consolidator is used, e.g. a factory load shipment, provide the name/address of the manufacturer (supplier).

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Buyer Name and Address

Name and address of the last known entity to which the goods are sold or agreed to be sold. If the goods are to be imported otherwise than in pursuance of a purchase, the name and address of the owner of the goods must be provided. IMAX is typically the buyer.

Ship To Name and Address

Name and address of the first deliver-to party scheduled to physically receive the goods after the goods have been released from customs custody. This should be the actual deliver to name/address; not the corporate address.

Importer of Record Number

IMAX will provide.

Consignee Number
IMAX will provide.

Country of Origin of Goods

Country of manufacture, production, or growth of the article, based upon the import laws, rules and regulations of the United States. A Certificate of Origin must be provided to IMAX.

Commodity Harmonized Tariff Schedule Number (6-digit HS Code)

Duty/statistical reporting number under which the article is classified in the Harmonized Tariff Schedule of the United States (HTSUS). The HTSUS number must be provided to the six-digit level. The HTSUS number may be provided to the 10-digit level.

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8. Carton Marking
IMAX will provide each Vendor with a template to use for labeling both Master Pack Cartons and Inner Cartons.

Required Information for Master Pack Carton

IMAX Item Number Minimum Buy Qty Gross Weight Container Code Product Image IMAX Logo Master Pack Qty Carton Dimensions CBM Product Description UPC Barcode

Required Information for Inner Carton

IMAX Item Number Inner Carton Qty Product Description Country of Origin UPC Bar Code Minimum Buy Qty Caution: Inspect Packaging Before Discarding

Carton Printing for Licensed Brands

Specific items may be purchased by IMAX to feature as part of a licensed brand program. These items will often require specific carton marking requirements either for the master pack carton, inner carton, or both. IMAX will advise specific carton marking requirements for each brand at the time of item selection.

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Example of Master Pack Carton Printing

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Example of Inner Carton Printing

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9. Item Labeling
Every item shipped to IMAX will require the following labels:

Country of Origin Label

Each product should be clearly marked with the country of origin or manufacture. Example: Made in China or Made in India

IMAX UPC Bar Code Label

IMAX will provide vendors with the UPC Numbers to create bar code labels for production shipments.

Label Formatting
Bar Code Symbology: UPC A Label Size: 3.85 cm x 2.5 cm (or similar size)

Barcode Assignment for Sets

IMAX will assign a unique barcode number to be applied to the individual units within the set. For example, each unit of a set of three (small, medium, or large) would be labeled with a unique barcode number. The label will be identified as Item Number S, M, or L. Some sets may be of equal size but vary only in color or design. IMAX will assign a unique barcode number to each unit within the set. However, the label will be indentified as Item Number A, B, C, D, etc. Sets containing identical items will be identified as Item Number E.

Labeling Candleholders
All candleholders must be labeled with the following statement. This warning may be applied either via hang tag or sticker to the underside of product.
WARNING: TO PREVENT FIRE KEEP BURNING CANDLE WITHIN SIGHT. KEEP OUT OF REACH OF CHILDREN AND PETS. NEVER BURN A CANDLE ON OR NEAR ANYTHING THAT CAN CATCH FIRE. ALWAYS PLACE LIT CANDLES ON A TEMPERATURE SAFE SURFACE. ALWAYS PLACE LIT CANDLES AWAY FROM FLAMMABLE MATERIAL. KEEP WICK TRIMMED TO INCH. TO EXTINGUISH CANDLE, BLOW OUT THE FLAME. DO NOT SNUFF.

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Labeling Copyright Items

Often, IMAX pays artists to use their artwork or designs for item production. This artwork is copyrighted and the vendor must label the artwork with the artist name, company, and year of design. In addition, some artists may require their signature be printed or stamped on the individual item. IMAX will supply vendor with all necessary artwork to permit production of both the copyright label and the artist signature.

Labeling Electric Lamps

All items that plug into an electric outlet must include the maximum wattage of light bulb and type to be used in each separate item. A label stating the maximum wattage of the bulb must be attached to the lamp as well as listed on the Commercial Invoice. All lamp cords should be clear in color. All electric lamps must be UL / CUL approved. A label stating UL / CUL approval must be adhered to each electrical lamp or chandelier. In addition, a UL certificate shall be provided to IMAX.

FDA Warning
Tabletop Items that have not been tested or have a failed result for FDA lead and cadmium requirements must be permanently marked with the following warning:
NOT FOR FOOD USE, MAY POISON FOOD

This warning must be applied in a permanent manner. For example, you may use an ink stamp, engrave, or emboss the warining on the underside of item. A sticky label does not comply with U.S. Federal Regulations. IMAX will work with each vendor to identify which items require this warning.

Labeling Garden or Outdoor Use Products

Products intended for garden or that could potentially be used for outdoor use must be labeled appropriately. Items that are safe for outdoor use must be labeled:
SAFE FOR OUTDOOR USE

Items that are not safe for outdoor use must be labeled:
NOT SAFE FOR OUTDOOR USE

IMAX will work with each vendor to identify which items require this warning.

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Poly Bags: Suffucation Warning

Poly Bags with an opening of 5 inches or greater require the following warning to be printed on the bag in English, Spanish, and French language.

English
Warning: Keep this bag away from babies and children. Do not use in cribs, beds, carriages or playpens. The thin film may cling to nose and mouth and prevent breathing. This bag is not a toy.

Spanish
La advertencia: Mantiene esta bolsa lejos de bebs y nios. No utilice en pesebres, las camas, los coches ni los corralitos. La pelcula delgada puede adherirse a la nariz y la boca y prevenir respirar. Esta bolsa no es un juguete.

French
L'avertissement : Garder ce sac loin des bbs et des enfants. Ne pas utiliser dans les berceaux, les lits, les attelages ou les parcs. Le film mince peut accrocher au nez et la bouche et empche la respiration. Ce sac n'est pas un jouet.

Warning Font Size

The size of the printing of the warniing on the plastic bag must adhere to the chart listed below: Total Length and Width of Bag 60 inches or more 40 to 59 inches 30 to 39 inches 25 to 29 inches Minimum Font Size 24 point font 18 point font 14 point font 10 point font

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10. Packaging Instructions

All items require packaging that will protect the item during transportation, distribution, storage, handling, and shipping. Items that can easily break must have inner and outer protection sufficient to withstand the normal distribution handling and shipping process.

Assembly Instructions / Hardware

All items which require assembly must also include assembly instructions. The instructions should be easy to read and understand. The instructions should reference IMAX Item Number and include a Parts List. Hardware and/or assembly instructions should be readily identifiable. Item which contain hardware should be placed in orange or red color bags and secured to item.

Packing Material
Packing Material must be placed on top, bottom, and sides of the items in order to eliminate the movement of the item. Packing Material also eliminates empty headspace reducing crushing of cartons:

Acceptable Packing Materials

Styrofoam Molding / Inserts Cardboard Inserts Thick Bubblewrap Pressed Wood (Furniture Items)

Unacceptable Packing Materials

Foam Peanuts Shredded Paper Print Material (Newspaper, Magazines Paper, etc.) Recycled / Scrap Material Below you will find minimum packing requirements for various product categories:

Oil Paintings / Canvas Wall Art

All paintings / canvas wall art should be protected with poly bag and have cardboard corner protection.

Ceramics, Resin, or Pottery

Fragile items such as ceramics, resin, or pottery should be protected with bubblewrap and supported with styrofoam mold, styrofoam inserts, or cardboard triangles.

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Metal Items
All metal items should be protected with bubblewrap and either styrofoam or cardboard inserts.

Glassware
Fragile items such as glassware should be protected with bubblewrap and styrofoam mold or caps as appropriate.

Lamps
Lighting should be protected with styrofoam mold. It is critical that the shade be supported to avoide crushing or dented. This is most often supported by styrofoam support.

Wood Items
Decorative accents that are made from wood should be protected with bubblewrap and styrofoam or cardboard corner protection.

Furniture Items
Furniture should never move inside the shipping carton. Any portion of the furniture that may come in contact with the carton must be well protected with a material to prevent abrasion. In addition, cushioning or abrasion protection material should be used in between the pieces of the item. All corners should be protected using corrugated corner pads. Allow for a minimum of 1 clearance between the item surface and the shipping carton. Any furniture drawers should be kept secure. In addtion, any loose parts should be packed so that they do not move during transporation. All largeurniture items (vanities, chairs, sideboards) must have a wood platform inside.

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Carton Requirements
When ordering boxes or cartons to use for packing your products, you must pay close attention to the strength of the box. This is most commonly measured by using a Burst Test or Edge Crust Test.

Burst Test
The traditional practice in making corrugated packaging is to combine different weights of paper liners with the corrugated (wavy) medium to meet a specific burst test that will handle the job of containment. Burst Test is the force required to rupture board using hydraulic pressure. This relates indirectly to the box's ability to withstand external or internal forces and to contain the contents during rough handling. This force is measured in lbs per square inch. For example, a box with a burst strength 200 lbs per sq. inch indicates that the combined board used to make the box can with-stand 200 lbs of hydraulic pressure per square inch.

Edge Crush Test

The Edge Crush Test measures the board's ability to withstand crushing to its columns. The amount of force needed to crush board standing on its edge is a principal factor in determining the compression strength of a finished box. This force is also measured in lbs per square inch. For example, a box with an ECT 32 lbs per square inch indicates that the board, standing on edge, can withstand a force of 32 lbs per square inch before crushing.

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Please refer to the chart below. This will serve as a guideline for selecting a carton strong enough to support the item. Maximum Weight of Box and Contents 20 35 50 65 80 95 Maximum Carton Dimensions Inches
(Length + Width + Height)

Minimum Burst Test 125 150 175 200 250 275

Minimum Edge Crush Test (ECT) 23 26 29 32 40 44

40 50 60 75 85 95

Maximum Weight of Box and Contents 80 100 120

Maximum Carton Dimensions Inches

(Length + Width + Height)

Minimum Burst Test 200 275 350

Minimum Edge Crush Test (ECT) 42 48 51

95 95 105

Sealing Cartons
All cartons should be securely sealed with tape. Master pack cartons must also be secured with plastic banding. Do not use metal or wire banding.

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11. Product Design and Testing Requirements

All products purchased by IMAX Corporation must comply with industry standards for both safety and quality. Unless otherwise advised, all goods should be designed / manufactured to meet U.S. Standards. In the event a shipment has a final destination other than U.S. vendor will be advised at time of order confirmation. Prior to buyer acceptance and or sale by IMAX Corporation, the vendor must provide documentation that the proposed item has passed the following tests. Copies of the test results must be emailed or faxed to the Vendor Compliance Department. All required testing will be at the expense of the vendor.

General Candle Testing

All candle accessories and candles must be designed to pass the following testing:

Candle Accessories
Tilt Test Flammability Test Burn Temperature Test

Candles
Candle Burn Test

Candle Safety Analysis Required

Candle Accessories or Candles must be risk free of all potential hazards. A safety analysis must be conducted by either the manufacturer, designer, supplier or an independent 3rd party lab facility to show evidence the item(s) has been properly evaluated and pass a safety analysis. Actual documentation must be provided in the English language and minimally contain the following: 1) The party's letterhead who conducted the safety analysis, 2) Date of the analysis, 3) Item(s) description and number, 4) Results, and 5) Contact name. Hand written documentation will not be acceptable.

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Shelves
The flat surface of a shelf must hold a distributed weight of 20 lbs. for a period of 24 hours. Any hooks or pegs that protrude from the shelf must hold a weight of 10 lbs. for a period of 24 hours.

Shelf Safety Analysis Required

Shelving must be risk free of all potential hazards. A safety analysis must be conducted by either the manufacturer, designer, supplier or an independent 3rd party lab facility to show evidence the item(s) has been properly evaluated and passes a safety analysis. Actual documentation must be provided in the English language and minimally contain the following: 1) The party's letterhead who conducted the safety analysis, 2) Date of the analysis, 3) Item(s) description and number, 4) Results, and 5) Contact name. Hand written documentation will not be acceptable.

Textiles
All textiles should be tested for flammability, color fastness, crocking, and tension. In addition to testing, textiles should be properly labeled with the following information: Fiber Content Country of Origin RN# Care Instructions

Seating
All chairs, benches, and stools should be constructed to safely support weight of adult person. Please refer to ASTM / ISO standards in chair construction for the proper design and testing for strength, stability, and durability.

Seating Safety Analysis Required

Seating must be risk free of all potential hazards. A safety analysis must be conducted by either the manufacturer, designer, supplier or an independent 3rd party lab facility to show evidence the item(s) has been properly evaluated and passes a safety analysis. Actual documentation must be provided in the English language and minimally contain the following: 1) The party's letterhead who conducted the safety analysis, 2) Date of the analysis, 3) Item(s) description and number, 4) Results, and 5) Contact name. Hand written documentation will not be acceptable.

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Bedding and Upholstered Furniture

All bedding items and upholstered furniture must be registered with appropriate states. Please utilize this link to determine what registration to take place before your item needs can be sold. http://www.abflo.org In addition, all bedding and upholstered furniture must meet the requirements of the California Bureau of Home Furnishings and Thermal Insulation (BHFT). This information can be retrieved from: http://www.bhfti.ca.gov/tb604 A separate tag must appear that the item has passed the requirements for California flammability requirements. Vendors should reference TB 604.

Flammability Testing Required

Vendors should have their upholstery products tested to ensure compliance with California flammability requirements. This test should be performed from an independent 3rd party lab facility. All labels should be sewn into the underside of the furniture. Examples of Upholstery Law Labels and California Flammability Tags are shown below:

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Tableware
Tableware is a group of any item that is defined as being safe for food serving, handling, storage etc. These items must pass the following tests before IMAX can consider it for sale.

California Prop 65
http://www.oehha.ca.gov/prop65.html

FDA Compliance Guidelines

http://www.fda.gov

Lead Content
Type of Tableware Plates Bowls Serving Dishes Cups or Mugs Large Pitchers, Jugs FDA Requirement 3.0 ppm 2.0 ppm 1.0 ppm 0.5 ppm 0.5 ppm California Prop 65 0.226 ppm 0.1 ppm 0.1 ppm 0.1 ppm 0.1 ppm

Cadmium Content
Type of Tableware Plates Bowls Serving Dishes Cups or Mugs Large Pitchers, Jugs FDA Requirement 0.5 ppm 0.5 ppm 0.25 ppm 0.5 ppm 0.25 ppm

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Consumer Product Safety Improvement Act 2008 (CPSIA) Compliance

All products purchased by IMAX Corporation must comply with CPSIA requirements pertinent to each item. For home dcor products, this is generally lead in surface coatings testing (16 CFR Part 1303). All products must be tested for CPSIA compliance. While all lab testing costs are the responsibility of the vendor - IMAX has negotiated discounted lab testing fees with our preferred lab, Intertek. Please refer to Intertek Testing file for more information regarding lab locations and IMAX Testing Request Forms. If you choose a lab other than Intertek it is essential that the lab be accredited by CPSIA Commission. Please refer to http://www.cpsc.gov/ABOUT/Cpsia/labaccred.html for more information.

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CARB Californias Formaldehyde Air Toxic Control Measure

The California Air Resources Board (CARB) has implemented new limits for formaldehyde emitted from composite wood products. All imported products are regulated and must be third-party certified and clearly labeled to indicate they meet the requirements. This regulation applies to hardwood, plywood, particleboard, and MDF and all products (such as furniture and decorative household items) made with these products. All items containing CARB regulated product must be certified by an approved third party certification testing agency. See below chart for CARB emission standards.

Item Labeling Requirements for CARB Compliance

Additionally, all CARB regulated items must be labeled with the following information: IMAX Corporation Production Lot Number or Batch Compliance Standard Being Met (Example: Phase 1 or Phase 2) CARB assigned number of third party compliance agency

Import Documents: Statement of Compliance

A statement of compliance must be included with either the invoice or bill of lading. This Statement of Compliance must include the manufactures name, the certification number of the third party compliance agency and the compliance standard met by the product.

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12. Protective Design Requirements for Home Accents

Often, unprotected accessories can result in costly damage to a stores display furniture or customers home. Bowls with metal feet, vases, and dishes with rough, ceramic bases and candlesticks with pointed, metal feet mar, scratch and gouge tabletop surfaces. Protective measures must be taken to solve this problem. The photos below provide examples of the types of accessories that can easily cause damage to customers home or store furniture.

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Design and Protection Specification

Item Design Requirements Base perimeter should be a minimum of 1 wide and rounded corners. For full base bottoms, ensure unglazed surfaces are polished to remove any residual roughness. All bases should have an acid-finished smooth base. Cut glass should have rounded edges. All metal products should be rounded or filed smooth. No sharp points or corners. Tightly woven, smooth finish with no rough edges. Sanded smooth, nontransferable stained bottoms. Sanded smooth, nontransferable stain / finish. Protection Specification Full Coverage EVA Pads or Felt Pads around perimeter of base.

Ceramic / Resin

Glass

If base is not smooth, must add clear, rubber pads. Full Coverage EVA Pads or Felt Pads around perimeter of base.

Metal

Wicker Wood Furniture

Full Coverage EVA Pads or Felt Pads around perimeter of base. All furniture must have plastic feet.

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13. IMAX Quality Control Inspections

All shipments originating from China or India must undergo quality inspections prior to shipment. Inspections will be completed by IMAX QC Inspector or Agent. It is critical that vendor allow for all required inspections and accommodate any production revisions as necessary for goods to pass inspection. IMAX invests much money and time to send inspectors to factory locations for inspection. In the event a shipment fails inspection and requires re-inspection the vendor shall pay all transportation cost and hotel costs. Shipments delayed as a result of failed QC inspection will result in late shipment penalty.

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14. Vendor Claims / Chargeback Policy

Vendor must comply with all requirements outlined in the IMAX Vendor Compliance Manual. Any deviation will result in chargeback. Below, you will find a list of common compliance issues and general chargeback schedules. However, IMAX Buyer or Vendor Compliance Manager may assess violations and impose fees as appropriate. Charge Back Type Carton Labeling Violations Non Compliance Issue 1. Incorrect Item Number 2. Incorrect Barcode 3. Incorrect Qty 4. Incorrect Unit of Measure 1. Excessive Carton Damage 2. Unacceptable Packing 1. Defective Goods 2. Wrong Color / Style 1. Product Shortage 2. Invoicing Error (Price) 1. Overship in Item Qty 2. Mixing Orders among two or more containers 1. Submitting original documents to IMAX (or bank for LC) more than 10 days after departure. 2. Submitting fax or email copies more than 2 days after departure. 1. Containers not shipped on the assigned week without written approval from IMAX. Charge Back Expense $5 per Carton + $25 per Man Hour Labor* $25 per Man Hour Labor + Cost of Materials IMAX will not pay for any items arrived broken 100% Cost of Good + Freight Cost + $25 per Man Hour Labor* 100% Cost of Goods Payment will be adjusted to reflect negotiated cost Payment will be adjusted to reflect actual ordered qty $200 Per Occurrence $150 per day, beginning on the 11th day $150 per day, beginning on the 3rd day 5% of Invoice after 1st week late. Chargeback will increase by additional 2% for each additional week late. Minimum $500 charge. IMAX reserves the right to cancel any shipment that is late.

Packing Specific Violations Quality Specific Violations Invoicing Violations Order Variance Violations

Late Document Presentation

Late Shipment Violations

* Labor Cost of $25 per man hour is subject to increase based on current U.S. Labor Cost.

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All Changes Effective February 20, 2009 This Vendor Compliance Manual supersedes all previous instructions submitted by IMAX Corporation either verbal or written. IMAX Corporation P.O. Box 472188 Tulsa, OK 74147 USA www.imaxcorp.com mail@imaxcorp.com Phone: 918.254.2700 Fax: 1.918.249.1000