CREDIT AND COLLECTION POLICIES

Creative Expressions welcomes the opportunity to extend an open line of credit to organizations with which we will be doing business. We have prepared this policy statement to explain our credit terms. If this does not answer all of your questions, please contact our Credit Department. We look forward to a mutually beneficial relationship.

A. GRANTING OF CREDIT

1. A line of credit will be granted on the basis of the results of a credit investigation by the Credit Department as to the credit history and financial strength of the account in question.

2. All customers are required to complete and sign our credit application, which will provide the credit information needed to support the line of credit extended. This information will be held in strict confidence by Creative Expressions. If additional information or clarification is needed, the account will be contacted by the Creative Expressions Credit Department.

3. Payment in advance will be required when a customerπs credit history precludes the extension of open account credit, a collection problem exists, or the urgency of the shipment precludes a normal credit investigation. These terms will be administered by the Credit Department as required.

B. TERMS

1. All orders presented to Creative Expressions will have standard terms of net 30 from date of invoice or as stipulated from the applicable seasonal catalog unless otherwise specified by prior agreement. No terms or conditions of purchase orders different from the terms of Creative Expressions will become part of any sales agreement or other document unless specifically approved in writing by Creative Expressions. Terms subject to credit approval.

2. Late interest charges will be assessed on all invoices if payments are not made within Creative Expressions terms at the rate of 1.5 percent per month, which is an annual rate of 18 percent. Late interest charges will be due upon notification and will be treated the same as an invoice for collection purposes.

3. If per special promotion, an invoice has discount terms, the invoice must be paid within those terms or the discount will be disallowed. The account will be notified of the amount of discount disallowed and the check number involved. This amount must be included on the next remittance to Creative Expressions. Discount due date is determined by invoice date.

4. In the event a customer is sent to collections, there will be charges for any court costs, attorneyπs fees of not less than twenty-five percent (25%) of the unpaid amount of principal and interest and all other cost of collection incurred, all without relief from valuation and appraisement laws.

5. We do not accept post-dated checks. We will not be held responsible for post-dated checks sent to our lockbox. Payment due dates are based upon date of original invoice. Cash discount does not apply to payments being made with credit cards. Additional anticipation discounts for payments made earlier than discount due date will not be allowed. Post audit deductions are not allowed on invoices after 6 months from date of invoice.

C. INVOICE ERROR OR DISCREPANCIES

1. If an account believes there is an error on an invoice, they should contact their Creative Expressions Customer Service Representative immediately. It is then Creative Expressions responsibility to investigate that error and resolve it as soon as possible. No post audits are allowed on invoices after 6 months from date of invoice.

2. Holding payment on a full invoice or the entire account, when only part of an invoice requires adjustment, is a violation of terms and will subject the entire invoice or account to interest charges and may result in disallowed discounts, if applicable.

D. ≥NOT SUFFICIENT FUNDS≤ (NSF) CHECKS

1. A $50.00 charge will be assessed for all checks presented for payment which are returned to Creative Expressions due to insufficient funds, and will be treated as an invoice for collection purposes.

2. If an account submits two such NSF checks, the account may be placed on a ≥certified funds only≤ status for a minimum of six months. After that time, a new credit investigation will be performed. Based upon the results of this investigation, the Credit Department may elect to return the account to open status or maintain the account on a ≥certified funds only≤ status.

E. COLLECTION POLICY

1. A ≥Statement of Account≤ will be sent the first of each month upon request.

2. In the event that payment of an invoice becomes past due, the account will be contacted by the Creative Expressions Credit Department to determine if any problems exist with the invoice. If the account believes there is an error on the invoice, the Credit Department will take appropriate action to resolve as soon as possible.

3. If there are no discrepancies on the invoice, the account will be reminded of our terms, including late interest charges, and asked when payment will be forthcoming. If an agreement cannot be reached on a mutually acceptable payment date, the account will be placed on credit hold, which will preclude the shipment of future orders on an open credit basis until the account is no longer delinquent.

F. RETURN GOODS POLICY

1. All returns must be authorized by our Customer Service Department before the merchandise is returned.

2. Specified return instructions will be provided on return procedures, as well as return shipping labels.

3. Merchandise that is returned to us without proper return authorization numbers clearly displayed will be refused. Credit will not be issued for any merchandise for which advance authorization was not obtained, and will be issued only for goods actually received by Creative Expressions .

4. All returns not attributable to a Creative Expressions error are subject to a 15% restocking charge. Customer is responsible for freight charges for the return.

G. MINIMUM ORDER QUANTITY

1. All Creative Expressions orders must be a minimum $500 if you have an established account on credit terms.

2. All orders less than $500 must be paid for with a credit card or check in advance and the customer is responsible for the freight charges.

H. FREIGHT CHARGES

1. Freight is prepaid on all orders over $500. Customer will pay the freight on any order less than $500.

2. Free freight will include only normal freight charges as determined by Creative Expressions. The following freight charges will not be paid by Creative Expressions but will be charged to the customer: freight on orders where the customer selects a specific carrier outside of Creative Expressions authorized carriers, air freight or special charges for customer requested rush deliveries, call before delivery charges, and inside delivery charges.

I. BACKORDERS

1. Creative Expressions will attempt to completely fill all orders. However, some products will occasionally not be available for immediate shipment. Backorders will be processed according to how you have customized your Backorder Policy.

HOFFMASTER/CREATIVE EXPRESSIONS

Credit Dept.

2920 N Main Street /P.O. Box 2038

Oshkosh, WI 54903-2038

Phone: 800-558-9300/Fax: 800-232-6140

1/1/06