Action Items for Implementation of the transfer

1. Action Items for Implementation of the transfer Supplier Information:  Smurfit, Mexico • Plant located in Queretaro, Mexico 2 hours from Atizapan • Warehouse in Atizapan: SOQ • SOQ - Service Outsource of Queretaro, a local supplier in Queretaro to handle the Atizapan production (as a 3rd party) and the distribution to the Atizapan Plant • SOQ will buy the corrugated sheets from Smurfit • Payment Terms – 5th 3rd Prox • Atizapan's Service Requirements: • Daily Deliveries • No Stock Out • Maintain Current Process which is very efficient • Develop a firm working relationship Actions for Transition Plan • Inventory as follows: • Approximately 189 total SKUs • 24 High Volume Items (defined as anywhere from 2000-20000 per month units of each SKU) • One shipment per week is required for High Volume Items • 40 Mid Volume (defined as anywhere from 500-2000 per month units of each SKU) • Daily deliveries is required for Med and Low Volume Items • Low Volumes - all other SKUs consumed at a rate of less than 500 units per month • Transition will start with the transferring of high and med volumes only from Weyerhaeuser to Smurfit / SQO • Eric Sabaleta from Especial Display will continue to produce the low volumes until Smurfit has fully mastered the production of the initial transfer. Then, we will transfer the low volumes to Smurfit / SOQ • Weyerhaeuser will produce one month worth of High and Mid Volume Items to built inventory prior to executing the transfer of the tooling • Inventory to be produced by Weyerhaeuser by July • SOQ Warehouse to hold this inventory • Approval of samples from SOQ for process by • Submitting first purchase order to Smurfit / SOQ by