ARTISTIC STITCHES, INC W. Grand Avenue Chicago, Illinois Phone: Fax:

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1 Artistic Stitches, Inc. is a full service true contract embroiderer operating 300 heads of Barudan embroidery machinery. Our goal is to offer our customers the best embroidery, pricing and service so they can effectively compete. In partnership we succeed together. 1/1/08 Contract Embroidery Pricing STITCHES < 3,000 $4.10 $1.65 $1.30 $1.10 $0.90 $0.80 < 4,000 $4.75 $1.90 $1.50 $1.30 $1.08 $0.94 < 5,000 $5.38 $2.15 $1.70 $1.50 $1.26 $1.08 < 6,000 $6.00 $2.40 $1.90 $1.70 $1.44 $1.22 < 7,000 $6.63 $2.65 $2.10 $1.88 $1.60 $1.34 < 8,000 $7.25 $2.90 $2.30 $2.06 $1.76 $1.46 < 9,000 $7.88 $3.15 $2.50 $2.24 $1.92 $1.58 < 10,000 $8.50 $3.40 $2.70 $2.42 $2.08 $1.70 Add/1,000 $0.55 $0.25 $0.20 $0.18 $0.16 $0.12 Stitch counts are rounded up to the next 1,000 stitches. Please call for quote on orders over 5,000 pieces. TIME FRAMES - Standard service is four to seven working days from the receipt of all product, the completed purchase order and design approval. Same day and next day service add 100%; two day and three-day service add 50%. Rush service as availability allows. HATS Hats and Flats need to be on separate purchase orders as they cannot run together or be combined for quantity pricing. DIFFICULT TO HANDLE ITEMS - Most bags will incur a handling charge of $0.50-$2.00 depending on difficulty of hooping and handling. Carhartt items will incur a 100% handling charge. Please contact your account manager about other items that require special handling. PERSONALIZATION - In our basic block or script embroidery machine font: first name $3.00, add $1.00 for each additional word. Digitized fonts add $6.00 per personalization. SOLVY - $0.30 per piece when needed. Solvy is a removable topping for fleece, towels, pique and like items enhancing the look of your logo. COLOR CHANGE CHARGE - $10.00 for each quantity of less than 24 embroidered pieces within the order requiring a change of thread. METALLIC THREAD - There is a 30% per piece up-charge for metallic thread. POLY BAGGING - $0.18 each (shirt size), $0.25 each (jacket, beach towel, blanket size) HANDLING FEES - Excessive handling of product due to the way product was shipped or packaged when received by Artistic Stitches, or any special packaging, labeling or other handling required to prepare an order for shipment will be charged at $40.00 per hour with a one-half hour minimum and will be billed in one-half hour increments DAMAGE ALLOWANCE - The standard damage allowance is 2% per location embroidered or one piece whichever is greater. We are not responsible for damages on caps or visors due to the different variables in embroidering them. REORDERS and BACKORDERS - Will be invoiced based on the new quantity and actual stitch count. DROP SHIPS - Drop ships are charged at $5.00 per location plus shipping charges. INTERNATIONAL SHIPPING - A shipping account number must be supplied. There is a $25.00 charge for the required paperwork. SHIPPING INSURANCE - Please provide the average per piece amount for which you would like your product insured or you can specify that you do not want your product insured. If an amount is not specified we will estimate a value. Artistic Stitches cannot be responsible for over or under valuing your shipment. Insurance charges will be added to you freight total. RECEIVING All packages must be sent to the attention of your company and your embroidery P.O. number (ex: Attn: XYZ Promos #789), and must have a packing slip referencing this same information. This will insure the quickest most accurate check-in of your product. We will not be responsible for delays due to difficulty in matching product to your order when this information is not supplied STORAGE - Artistic Stitches cannot be responsible for embroidered or blank merchandise left at our facility for over 60 days. If you need to have merchandise warehoused with us for a longer period of time please call us to make arrangements. PAYMENT TERMS - Payment terms are net 30 for existing customers with good credit history. New customer s credit will be reviewed and terms will be established. Accounts over net 45 are subject to credit hold and carrying charges.

2 Combining our experienced in-house digitizing staff with the latest embroidery program technology allows us to produce an embroidery design that surpasses all of your customer s expectations. Designs are quoted based on an estimated stitch count. You will be notified of the actual stitch count once the design is digitized. Your invoice for both the digitizing and embroidery will be based on the actual stitch count rounded up to the next 1,000 stitches. Free Digitizing (Standard Service with an embroidery order of 432 pieces or greater) $5.00 per thousand stitches (Standard Service with an embroidery order of 24 pieces or greater) 1/1/08 Custom Digitizing Price Guide OVER 432 PIECES STANDARD SERVICE: Free PIECES STANDARD SERVICE: $5.00 per 1,000 stitches (Minimum charge $25.00/minimum order 24 pieces) 1-23 PIECES STANDARD SERVICE: $10.00 per 1,000 stitches (Minimum charge $50.00) RUSH SERVICE: $14.00 per 1,000 stitches (Minimum charge $70.00) 1-2 days any size order (Rushes as availability allows) Edits: Sewouts: Customer Design: Start at $20.00, are quoted based on complexity and take between one and three days to complete. One sewout is included with new digitizing and edits. Additional sewouts will be billed at the one-piece price. Artistic Stitches will take in customer designs/disks, create one sewout (up to 10,000 stitches) and set up a production folder for $ Additional stitches over 10,000 will be billed at $.50/1000 stitches. Design Copy: Hard Copy: $25.00 per design plus shipping ed Copy: $15.00 per design STANDARD SERVICE - Our standard service (which includes an ed JPEG of a sewout) is three business days for Approved Artwork received before 2 pm CT. Designs received after 2 pm CT will be processed the next business day. For example if you were to submit your Approved Artwork by 2pm on Monday you would receive your ed JPEG sewn out sample by 5pm on Thursday. As needed we can ship the actual sewout (shipping expenses will apply). FREE DIGITIZING To qualify for Free Digitizing an order of over 432 pieces must be received within 4 days of design completion. If an order does not result within 4 days of design completion your digitizing will be invoiced based on our digitizing price guide. If a qualifying first order for the new design is received within 21 days of the digitizing invoice date you will be credited for the digitizing on your embroidery invoice. Approved Artwork is defined as: 1. Artwork to size that can be scanned and digitized. We can accept artwork in JPEG, EPS, Illustrator 10, Corel 8 and Photoshop 7 formats. 2. An agreed upon size of the final embroidery. 3. The fabric, weave/knit, type and color of garments/products, as well as the embroidery location for each garment/product. 4. The PMS and/or Robison Anton thread colors. EDITS BY GARMENT -Different types of garments may require edits to a design to ensure the acceptable appearance of the logo. Please make sure you let us know what type of product the logo will be going on for the initial and subsequent orders. CUSTOMER DISKS - Artistic Stitches cannot be responsible for the quality of a design that we did not digitize in-house. When you send us a digitized file it is assumed that you have seen the design and approve of the quality. Keep in mind that different machines will embroider differently and we may proceed with a logo we do not like or we may stop the job and send you a scan. If we choose to stop a job for this reason it may delay production and therefore delay delivery of your finished goods. If we have to stop a job for quality issues with regard to a design that we did not digitize in house there will be a $40.00 charge to reset the job after the design has been fixed.

3 P.O. REQUIREMENTS The following information should be included on all purchase orders to ensure that your job is produced accurately and efficiently. PRODUCTION INFORMATION P.O. #: Design: Product: Receipt of Product: Location: Colors: Ship Date: Price: Special Handling: Order Breakdown: Changes: Provide a P.O. # for each order. Name or description of design. If the design is a reorder please reference the design number. Provide brands, colors, sizes, quantity, style, gender, fabric and weave/knit for each item. Indicate when we should receive the product, from what vendor and which carrier. All product arriving at Artistic Stitches needs to be labeled Attn: Your Company & Your P.O. Number and should have a packing slip referencing this same information. We will not be responsible for delays in production due to difficulty in matching product to your order when this information is not supplied. All ground deliveries are received via our check-in process within 24 hours of delivery. Specify the location(s) for logo(s) to be placed. Indicate the color for each area of the design by designating a PMS number or a Robison-Anton thread name and number. We stock Robison-Anton brand thread; thread color is not a perfect match to PMS colors. Indicate the date your order is to ship or be ready for pick-up at the end of the business day. If your order will need to be picked up at an earlier time of day please advise this on your order. Indicate the cost of all services broken down by service. Please reference your quote number if available. Please specify any special handling such as polybag, special packaging, drop-ships, etc. Flats, Hats and Bags need to be put on separate purchase orders, as these items do not run together. All changes to your order must be submitted in writing; no verbal changes will be accepted. DIGITIZING INFORMATION Design: Artwork: Colors: Size: Product: Sample: Customer Disks: Is artwork new, existing or requiring an edit. We can accept Approved Artwork in JPEG, EPS, Illustrator 10, Corel 8 and Photoshop 7 formats Approved Artwork is defined as: 1. Artwork to size that can be scanned and digitized. We can accept artwork in JPEG, EPS, Illustrator 10 Corel 8 and Photoshop 7 formats. 2. An agreed upon size of the final embroidery. 3. The fabric, weave/knit, type and color of garments/products, as well as the embroidery location of each item. 4. The PMS and/or Robison Anton thread colors. Indicate the color for each area of the design by designating a PMS number or a Robison-Anton thread name and number. We stock Robison-Anton brand thread; thread color is not a perfect match to PMS colors. Specify the approximate size of the finished logo. Specify the fabric, weave, color(s), garment style and location to be embroidered. If there are various garments please provide this for information for all items. Indicate if a pre-production sewout is required via ed scan or the sewout shipped to you or your customer. Artistic Stitches cannot be responsible for the quality of a design that we did not digitize in-house. When you send us a digitized file it is assumed that you have seen the design and approve of the quality. Keep in mind that different machines will embroider differently. Changes: All changes to your order must be submitted in writing; no verbal changes will be accepted. Page 1 of 2

4 P.O. REQUIREMENTS (cont.) SHIPPING INFORMATION Ship to: Ship via: Changes: UPS: Other Carriers: Artistic Messenger: International Shipping: Insurance: Dimensional Weight: Drop Ships: Tracking # s: Charge Backs: Delivery: Pallets: Large Shipments: Call Tags: Provide a complete ship to address and advise if commercial or residential. All shipments will be marked Residential if your P.O. does not specify otherwise. A contact name and phone # are required for air shipments. Provide your preferred shipper, ship method and the date we need to ship by end of business day. All changes to your order must be submitted in writing; no verbal changes will be accepted. UPS makes one daily pick-up at Artistic Stitches. UPS is our main carrier and we have a strong relationship with both our UPS Driver and Representative. We communicate with our representative frequently on ways to offer better service to our customers. Other carriers including but not limited to Fed-Ex, DHL, Trucking Companies, etc. need to be called for a pick-up. Not all of these carriers will pick-up the same day or guarantee a pick-up date or time. Several of these carriers also charge for pickups, some charge a flat fee and others charge a per box fee. We work with several messenger companies in the Chicago area and can arrange messenger delivery of your product. We can request pick-up and delivery times but cannot be responsible for late pick-ups and deliveries due to traffic, etc. An account number must be supplied for International Shipments. There is a $25.00 charge for the paperwork required for international shipping. Please provide the average per piece amount you would like your product to be insured for or you can specify that you do not want your product insured. If an amount is not specified we will estimate a value. Artistic cannot be responsible for over or under valuing your shipment. Insurance charges will be added to you freight total. UPS and other carriers charge Dimensional Weight which reflects the amount of space a package occupies in relation to its actual weight. An example of this is bulky polar fleece, which may not weigh much but takes up a lot of space. For more detailed information please contact your specific carrier. Provide a list of drop ships if needed. ($5.00 per location plus shipping charges.) Tracking numbers for UPS shipments can be found on our website (). For other tracking # s please contact your customer service representative via or phone. UPS shipments can be tracked on our website once they have shipped. Simply click on Track Shipments at the bottom right of any page and key your P.O. # into the box, click on Track this package and you will be directly taken to your package information on the UPS website. Artistic Stitches will invoice any charge backs from shipping carriers due to incorrect or incomplete shipping information. Charge Backs include but are not limited to residential versus commercial address, wrong and or incomplete address information, dimensional weight, etc. We cannot guarantee delivery times and are not responsible for late shipments due to carrier issues. Artistic Stitches is not responsible for merchandise once it leaves our facility via your requested ship method. Product put on pallets and shrink-wrapped will be charged $15.00 per pallet. Floor loading and unloading of trucks will be charged $40.00 per hour When your vendor sends a call tag it must contain your Company Name, P.O. Number that was issued to Artistic Stitches and a description of product to be returned. Please also send a confirming to your customer service rep. with the above information as well as which vendor is issuing the call-tag. We cannot be responsible for matching/returning product with call-tags that do not provide this information. Page 2 of 2

5 PURCHASE ORDER (Example) Promos R Us P.O. #: Promo Way Order Date: 1/15/07 Chicago, IL Ship Date: 1/30/07 (312) Ship Via: UPS Ground Resid. (312) jane@promosrus.com Vendor: Ship To: Artistic Stitches, Inc. Racecars, Inc 2639 W. Grand Ave. Attn: John Doe Chicago, IL Racecar Drive Detroit, MI (248) QTY ITEM NO. DESCRIPTION UNIT COST TOTAL COST Black 100% Cotton Devon & Jones Short Sleeve Pique Polo Men s Sizes 6S, 10M, 10L, 12 XL, 12 XXL, 6 XXXL Black 100% Cotton Devon & Jones Short Sleeve Pique Polo Ladies Sizes 1 XS, 4 S, 4M, 3 L White 100% Cotton Devon & Jones Short Sleeve Pique Polo Ladies Sizes 5 S, 3 M, 3 L, 1 XL 1 Digitizing New Racecar artwork ed to Bob Smith on 1/15/ wide for Left Chest $40.00 $40.00 Thread Colors: PMS 193 Red for body, Black tires, PMS 422 Lt. Gray for windows & wheels Text on black shirts is PMS193 Red Text on Black shirts PMS 422 Lt. Gray 80 Embroidery Embroider logo Left Chest $2.30 $ Misc. Change text color $10.00 $ Misc. Polybag $0.18 $14.40 PRODUCT WILL ARRIVE FROM ALPHA VIA UPS GROUND ON 1/17/07 ATTN PROMOS R US #1234 When shipping insure all items for $15.00 each Call or Jane Doe with any questions on this order (312) or jane@promosrus.com

6 FREE SHIPPING The following suppliers all offer FREE SHIPPING into Artistic Stitches. Please contact the supplier for specific details and delivery schedules. AMERICAN APPAREL, INC. ( ) AMTEX ( ) BODEK & RHODES ( ) S & S ACTIVEWEAR ( ) STARDUST ( ) SUN CAP INTERNATIONAL ( ) (Previously Nissun Cap/Chicago Office) The following suppliers all offer FREE SHIPPING into Artistic Stitches for orders greater than $ Please contact the supplier for specific details and delivery schedules. ALPHA SHIRT COMPANY ( ) BRODER BROS. ( ) NES CLOTHING ( ) *When placing your orders, you must be very specific that you want the Artistic Stitches special free freight delivery option. Ship to/delivery address must be: ARTISTIC STITCHES, INC. Attn: Your Company Name & P.O. Number