UNITED STATES DISTRICT COURT, WESTERN DISTRICT OF WASHINGTON LEGAL NOTICE OF PROPOSED CLASS ACTION SETTLEMENT

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1 UNITED STATES DISTRICT COURT, WESTERN DISTRICT OF WASHINGTON LEGAL NOTICE OF PROPOSED CLASS ACTION SETTLEMENT ATTENTION PURCHASERS OF CRAYOLA 2011 WASHABLE COLORED BUBBLES. YOU MAY BE ENTITLED TO SETTLEMENT BENEFITS. PARTICIPATING IN THIS LAWSUIT WILL COST YOU NOTHING. A FEDERAL COURT HAS AUTHORIZED THIS NOTICE. THIS NOTICE MAY CONCERN YOUR LEGAL RIGHTS IF YOU PURCHASED OR ACQUIRED CRAYOLA 2011 WASHABLE COLORED BUBBLES PRODUCTS. THIS NOTICE IS BEING PUBLISHED BECAUSE A SETTLEMENT HAS BEEN PROPOSED BY ALL PARTIES IN A CLASS ACTION CURRENTLY PENDING BEFORE THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF WASHINGTON AT SEATTLE. 1. DESCRIPTION OF LAWSUIT. A class action lawsuit entitled Alyson Herfert v. Crayola LLC is currently pending in the United States District Court for the Western District of Washington at Seattle ( the Court ), Case No. 2:11-cv-1301-JCC. The lawsuit involves Crayola s Washable Colored Bubbles that were distributed at retail in 2011 ( 2011 Washable Colored Bubbles ). The lawsuit claims that the labeling and advertising of the bubbles as washable was and is not true. Crayola denies any wrongdoing. The Court has not ruled on the merits of the lawsuit. The parties have carefully investigated the facts and the law related to this litigation and have concluded that resolving the lawsuit pursuant to the proposed Settlement Agreement filed with the Court is in the parties best interest. Under the terms of the proposed Settlement Agreement, you are a Class Member if you purchased or acquired any 2011Crayola Washable Colored Bubbles products Crayola Washable Colored Bubbles are products identified as: individual bottles of bubble solution [SKU numbers , , , , , , , and ]; the Washable Colored Bubbles Bubble Launcher [SKU number ]; the Washable Colored Bubbles Wand Set [SKU number ]; the Washable Colored Bubbles three-pack [SKU number ]; and the Washable Colored Bubbles Play Pack [SKU numbers and ]. All of these products were distributed at retail in This lawsuit does not allege any wrongdoing regarding the reformulated 2012 Colored Bubbles currently in distribution, which are described below and bear different SKU numbers, and therefore this proposed Settlement Agreement does not provide any relief related to 2012 Colored Bubbles.

2 2. SUMMARY OF PROPOSED SETTLEMENT AGREEMENT. The proposed Settlement Agreement provides monetary or voucher benefits to the class, as well as comprehensive additional relief. Compensation for Purchase Costs: Class Members with proof of purchase or a UPC will receive their choice of: (i) the cash value of the 2011 Washable Colored Bubbles product(s) (plus any shipping, handling and tax if applicable) in the form of a check; or (ii) Crayola vouchers for the value of the 2011 Washable Colored Bubbles product(s) purchased (plus shipping, handling and tax if applicable), plus $5.00 in vouchers. Compensation or vouchers will not be given to more than one person for the same product. Class Members with no proof of purchase may receive the value of the 2011 Washable Colored Bubbles product(s) purchased in the form of Crayola vouchers not to exceed $ Compensation for Cleaning Costs: For out-of-pocket costs for cleaning supplies or services to remediate stains caused by 2011 Washable Colored Bubbles, Crayola will provide the cash value of such costs provided that: (i) the Class Member has a receipt or other reliable documentation for a 2011 Washable Colored Bubble product; (ii) the Class Member attests that the stain resulted from the 2011 Washable Colored Bubble product; and (iii) the Class Member provides a receipt or other reliable documentation showing out-of-pocket cost for the cleaning supplies or services. Compensation for Property Damage: For out-of-pocket costs to remediate damage to real or personal property caused by 2011 Washable Colored Bubbles, Crayola will provide the reasonable cash value of such costs provided the Class Member has receipts or other reliable documentation. Crayola reserves the right to seek verification of such damage, including the possible use of a claims adjustor at Crayola s expense to personally view the damage. Class Members dissatisfied with the resolution offered in connection with this provision have the right to appeal the offered remedy to a third party agreed to by Crayola and Plaintiffs. The reasonable fees and costs of the third party will be reimbursed by Crayola. Additional benefits to the Class include the discontinued production of the 2011 Washable Colored Bubbles as originally formulated; introduction of revised, improved bubble formula in 2012; removal of washable and spill resistant from labeling for the 2012 bubbles; clear labeling of product for outdoor use ; designation on the label that the product is messy ; and a recommendation on the label that play clothes be worn while using the product. In addition, Crayola will contribute art supplies valued at $250, to one or more designated youth charities. This is only a summary of the proposed Settlement Agreement s basic terms. For more information and the exact terms agreed upon, please review the proposed Settlement Agreement

3 on file with the Court clerk and available for review at 3. WHAT ARE MY OPTIONS AS A CLASS MEMBER? The Court has conditionally certified the following Class: All persons in the United States and its territories who purchased or acquired (including by gift) 2011 Washable Colored Bubbles, through the date of Final Settlement Approval. Excluded from the Class are: (i) Crayola LLC, any entity in which Crayola LLC has a controlling interest, and Crayola LLC s officers, directors, legal representatives, predecessors, successors, and assigns; (ii) affiliates of Crayola LLC, and those affiliates officers, directors, legal representatives, predecessors, successors, and assigns; and (iii) the judicial officers to whom this case is assigned. If you are a Class Member, your options are as follows: Do nothing and remain a Class Member. If you wish to remain in the Class, do nothing. Your interests will be represented by the Class Representatives and Class Counsel. You will be bound by the proposed Settlement Agreement and any related Court Orders or Judgments and will be deemed to have released certain claims against Crayola. As part of approving the Settlement, the Court may approve the Class Counsel s requested Fee and Expense Award of $950,000 and Representative Plaintiff Award of $1,500 per Representative Plaintiff, both of which will be paid by Crayola LLC. You do not have to pay any Fees, Expenses or Representative Plaintiff Award payments authorized by the Court. As a Class Member, you may object to the proposed Settlement Agreement as a whole, to any part of the Settlement Agreement, Class Counsel s requested Fee and Expense Award, and/or the Representative Plaintiff Award. You may also submit an Intent to Appear at the Final Approval Hearing. You must mail a Written Notice of Objection and/or Notice of Intent to Appear at Fairness Hearing to the Clerk of the Court and must also send copies to Lead Class Counsel. The addresses of the Clerk of the Court and Lead Class Counsel are: United States District Court Lynn Lincoln Sarko Clerk of the Court Gretchen Freeman Cappio U.S. Courthouse KELLER ROHRBACK L.L.P. 700 Stewart Street, Lobby Level 1201 Third Avenue, Suite 3200 Seattle, WA Seattle, WA Lead Class Counsel will forward your objection to Counsel for Crayola LLC. Your Objection and/or Notice of Intent to Appear must be postmarked no later than March 30, 2012 to be considered. A Written Notice of Objection must contain the objector s name, address, telephone number, address, reasons for the objection, and a detailed list of any other objections submitted by the objector or the objector s counsel to any class action settlement submitted in any court in the previous five (5) years. If you intend to

4 appear at the Final Approval Hearing through counsel, your Written Notice of Objection must also state the identity of all attorneys representing you at the Final Approval Hearing. If the Court rejects your objection, you will be bound by the Settlement Agreement. Exclude yourself from the Class. If you are a Class Member and do not want to be part of and legally bound by the proposed Settlement Agreement, you must exclude yourself from the Class. To do so, you must mail a written Request for Exclusion to the Clerk of the Court and must also send copies to Lead Class Counsel. The addresses of the Clerk of the Court and Lead Class Counsel are: United States District Court Lynn Lincoln Sarko Clerk of the Court Gretchen Freeman Cappio U.S. Courthouse KELLER ROHRBACK L.L.P. 700 Stewart Street, Lobby Level 1201 Third Avenue, Suite 3200 Seattle, WA Seattle, WA Lead Class Counsel will forward your Request for Exclusion to counsel for Crayola LLC. Your Request for Exclusion must be postmarked no later than March 30, 2012 to be considered. 4. HOW DO I REQUEST SETTLEMENT BENEFITS? If the Court approves the proposed Settlement Agreement, class members may call Crayola at through December 31, 2012 to request settlement benefits. Hearing-impaired class members may send an to -bubbleshearingassistance@crayola.com. Please do not contact Crayola before April 24, 2012 because the settlement will not yet be in effect. 5. WHAT DO I GIVE UP UNDER THE SETTLEMENT? The Settlement Agreement is intended to settle and release all claims that Class Members have alleged or could have alleged in the lawsuit regarding the washability of 2011 Washable Colored Bubbles, including claims related to the staining of personal property as a result of 2011 Washable Colored Bubbles, as well as to the marketing and advertising of the 2011 Washable Colored Bubbles products. 6. FINAL APPROVAL HEARING. The Court has scheduled a Final Approval Hearing for the proposed Settlement Agreement at the United States District Court for the Western District of Washington, Seattle Courthouse in the Honorable John C. Coughenour s courtroom, 700 Stewart Street, Seattle, Washington, on April 24, 2012 at 9:30 a.m. to determine whether the proposed Settlement Agreement should be finally approved as fair, reasonable and adequate. If comments or objections have been received, the Court will consider them at this time. The Final Approval Hearing may be continued or changed without further notice to the Class Members. If you would like, you or your lawyer may ask to appear and speak at the hearing at your own cost, but it is not required.

5 7. ADDITIONAL INFORMATION. This is just a summary. For a full copy of certain documents related to this lawsuit, including the proposed Settlement Agreement, the parties Joint Motion for Conditional Certification of Settlement Class and Preliminary Approval of Settlement, Spanish translations of the summary notice and long form notice, the Court s Order Conditionally Certifying Settlement Class and Preliminarily Approving of Settlement, and the Summary Notice, please visit Class Counsel s Motion for Fees and Expenses and Representative Plaintiff Awards will be available at this site once it has been filed with the Court. THIS IS JUST A SUMMARY. FOR A FULL COPY OF THE PROPOSED SETTLEMENT AGREEMENT, PLEASE VISIT PUBLISHED BY ORDER OF THE U.S. DISTRICT COURT.