Co-op Advertising Program Calendar Year 2008

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1 Co-op Advertising Program Calendar Year 2008 Objective Missouri Mulch s Co-op Advertising Program is designed to encourage their clients promotion of high quality mulch from a 100% pure wood source. Products to be included in program include: 1) Missouri Mulch s Bulk Mulch 2) Nature s Cover Bagged Products a. mulch b. bark fiber c. playground surface d. potting mix Eligibility This program is available to participating dealers in the Missouri Mulch service area who are involved in the sales and promotion of Missouri Mulch bulk mulch and Nature s Cover bagged mulch, playground surface, bark fiber and other products deemed eligible for customer incentives. An approved Participation Agreement (Form 1) and Advertising Approval Request (Form 2) must be signed by both parties (Dealer and Missouri Mulch) before submitting claims. Effective s To qualify, advertising must be placed in the current calendar year. This program is subject to change and periodic review. This agreement is good for one calendar year starting January 1, 2008 through December 31, Allowance Each participating dealer will be issued a credit for 50 percent of newspaper, broadcast or billboard media advertising costs up to allocated budget per dealer, per year. Each dealer will have an ongoing co-op advertising allowance account that equals 3% annual payments beginning January 1, For example, 2007 customers can use 2007 payment amounts. New 2008 customers can use 2008 payment amounts.

2 Payment Guidelines A. Each dealer will have an ongoing co-op advertising allowance account that equals 3% of its annual payments beginning January 1, This is applicable to paid invoices. B. Missouri Mulch will issue credit for co-op advertising when we receive a tear sheet along with the media invoice or a point-of-purchase piece with the printer s invoice. Please forward these materials to: Missouri Mulch Co-op Advertising Program Terry Wright C/o Independent Stave Company P.O. Box 104 Lebanon, MO Phone: Fax: twright@staveco.com C. Upon receipt of Form 3 (attached), a tear sheet and media invoice or a point-of-purchase piece and printer s invoice, Missouri Mulch will issue a credit 50% of the ad s insertion cost or point-of-purchase s printing cost towards future purchases of Missouri Mulch products, up to the balance in your advertising allowance account. For example, Customer A has been invoiced $100,000 from Missouri Mulch since January 1, 2008; therefore, Customer A s current advertising allowance is $3,000 (3% of $100,000). Missouri Mulch receives a $3,000 media invoice and tear sheet from Customer A. Missouri Mulch will then issue a credit of $1,500 (half of the ad s $3,000 cost) towards future purchases of Missouri Mulch Company products. Customer A unused advertising allowance balance is $1,500. D. Missouri Mulch will only credit your account for half of the ad s media insertion cost or half of the printing cost for a point-of-purchase piece. We do not accept invoices for artwork, photography, creative concepting or design time. E. On a monthly basis Missouri Mulch will advise you of your unused advertising allowance. Media Acceptable media include newspapers, magazines, shoppers, radio, TV and billboards. Missouri Mulch will review additional requests. Required Inclusions Newspapers and Shoppers: All newspaper ads must devote 50% of the ad space to the specific product, i.e., Missouri Mulch bulk mulch, Nature s Cover bagged mulch, Nature s Cover playground surface, etc. Where specific products are included in ad content, the product must meet specific quality guidelines. Bulk mulch ads must include the Missouri Mulch logo and a tagline stating Mulch with a Conscience. Bag mulch ads must include the Nature s Cover logo and words Produced by Missouri Mulch.

3 Logo size must be a minimum of 1 inch tall and proportionate to ad size. Radio and TV: All radio and TV advertising must devote 50 percent of copy toward the promotion of Missouri Mulch and Missouri Mulch products. Billboard: All billboard ads must devote 50 percent of the ad space to Missouri Mulch and Missouri Mulch products. Where specific products are included in ad content, the pictures of the Missouri Mulch product must meet Missouri Mulch quality standards. Billboards must include the Missouri Mulch logo and the logo must be legible from 150 yards. Logo must be proportionate to billboard size. Other Acceptable Inclusions Other products may be included in the advertising provided they do not compete with the products specified by Missouri Mulch. For example, a competitor s mulch may not be included in a Missouri Mulch Co-op ad. Contact your trade account manager to discuss other acceptable inclusions. Unacceptable Inclusions Ads shall not mention any mulch company other than Missouri Mulch. Business card and signature ads are not acceptable. Requirements for Credit Co-op advertising requests must be approved (with signature) before being published or broadcasted. Missouri Mulch will examine materials for eligibility based on the requirements noted above. Exclusion of any one of the minimum requirements may make the request invalid. Missouri Mulch reserves the right to refuse an ad not meeting the outlined requirements. To obtain approval before, please send a copy of your proposed ad and Participating Dealer Co- Op Advertising Form 2 (see attached) to: Missouri Mulch Co-op Advertising Program Attn: Terry Wright P.O. Box 104 Lebanon, MO Phone: Fax: twright@staveco.com After the ad is published or broadcasted, send the following: 1) A completed Form 3 (attached) 2) A copy of the original media invoice. 3) A tear sheet or copy of the newspaper ad with the date published printed on it, or

4 4) A script and affidavit of performance for radio advertising, or 5) A copy of a billboard creative with Missouri Mulch or Nature s Cover logo with date printed on it. To obtain credit after the ad is published or broadcasted, submit the items above to: Missouri Mulch Co-op Advertising Program Attn: Terry Wright P.O. Box 104 Lebanon, MO Phone: Fax: twright@staveco.com Logos and Artwork Upon receipt of a completed Participation Agreement, Missouri Mulch will ship you a CD with logos, logo specs, photos, bag artwork, etc Examples Please see the following examples for acceptable and unacceptable co-op ads.

5 Missouri Mulch Co-op Advertising Program Missouri Mulch s Co-op Advertising Program is designed to promote environmentally friendly oak mulch and chips made of pure oak derived from barrel making. This includes Missouri Mulch and Nature s Cover products. Requirements for reimbursements: Missouri Mulch must pre-approve the ad based on the requirements mentioned previously. Failure to pre-approve the ad and/or the exclusion of one or more of the requirements will make the reimbursement request invalid. Missouri Mulch reserves the right to refuse an ad not meeting the outlined guidelines. If provided photos are used on anything other than approved co-op advertising, they must include the caption: Photos courtesy of Missouri Mulch. A 50% of the ad space must be dedicated to a Missouri Mulch product and/or message. B The Missouri Mulch logo must be at least 1 inch tall. Acceptable print advertising samples 100% pure wood source By product of barrel making Extraordinary product line, from color enhanced mulch to cedar Environmentally friendly ozark nursery for all your landscaping needs At Ozark Nursery, we have everything from ground cover to florals and trees. We are proud to distribute Missouri Mulch, the mulch with a conscience. Because their mulch is a byproduct of barrel making, they are using the most of Mother Nature s resources. From the roots to the petals, come to Ozark Nursery for your landscaping supplies. ozark nursery Ozark Nursery, 222 Gardens Way, Hilltown, MO sample full page ad for all your landscaping needs A B 100% pure wood source By product of barrel making Environmentally friendly At Ozark Nursery, we have everything from ground cover to florals and trees. We are proud to distribute Missouri Mulch s new line of premium bagged mulch, Nature s Cover. From the roots to the petals, come to Ozark Nursery for your landscaping supplies. ozark nursery 222 Gardens Way, Hilltown, MO sample half page ad

6 Unacceptable print advertising sample Business card size ads not acceptable. No Missouri Mulch logo present. No Missouri Mulch image or product present. ozark nursery 222 Gardens Way, Hilltown, MO Acceptable radio advertising samples Remember, advertising must devote 50 percent of copy toward Missouri Mulch or Nature s Cover, meaning Missouri Mulch or Nature s Cover should be mentioned as many times as the co-op partner s business name. Sample This is the time of year when planning for yard and garden projects are underway. If these projects include mulching, call the friendly professionals at (name of business) in (City), a Missouri Mulch participating retailer. Missouri Mulch is an environmentally friendly mulch made from pure wood. Whether it s a residential, commercial or industrial project, call the pros at (name of business) for a free estimate. (Name of business) is a participating retailer of Missouri Mulch, the Mulch with a Conscience.

7 Sample of available imagery to be provided on CD

8 Dealer Information FORM 1 MISSOURI MULCH PARTICIPATION AGREEMENT To be sent to apply for the Missouri Mulch Co-Op Plan Company or Dealership Name: Tax ID No.: Address: City: State: Zip: Primary Contact Person: Phone: Fax: Signatures: Missouri Mulch Participating Dealer Requirements Before submitting a claim, you must be approved on this sheet. Missouri Mulch reserves the right to modify or cancel this program with 30-days advance written notice.

9 FORM 2 MISSOURI MULCH ADVERTISING APPROVAL REQUEST To be sent to prior to ad running in TV, radio, newspaper, billboard, etc Dealer Information Company or Dealership Name: Primary Contact Person: Phone: Media Information Type of Media That Will Be Used: Newspaper: Radio: Magazine: Billboard: Other: Size or Length of Media: Print Size: columns x inches Broadcast Length: 30 seconds 60 seconds Other Net Ad Cost: $ s Ad Will Run (for broadcast media schedule, please indicate date ad ran and attach affidavit of performance) Start : End : Total Due Dealer: $ Signatures: Missouri Mulch Participating Dealer Requirements This form must be completed and signed by both parties prior to ad running. Missouri Mulch reserves the right to modify or cancel this program with 30-days advance written notice.

10 Dealer Information FORM 3 MISSOURI MULCH POST ADVERTISING REQUEST To be sent to along with tear sheet or other proof of advertising. Company or Dealership Name: Primary Contact Person: Phone: Media Information Type of Media Used: Newspaper: Radio: Magazine: Billboard: Other: Size or Length of Media: Print Size: columns x inches Broadcast Length: 30 seconds 60 seconds Other Net Ad Cost: $ s of Ads (for broadcast media schedule, please indicate date ad ran and attach affidavit of performance) Start : End : Total Due Dealer: $ Signatures: Missouri Mulch Participating Dealer Requirements Before claim is credited, this sheet must be approved by both parties.

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