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1 Revision: 2017-08 -10 1 VENDOR MANUAL August 10, 2017 Revision: 2017-08 -10 2 Table of Contents Page Section 1 Overview 3 Introduction 4 Social Compliance Program 5 Customs & Trade Partnership Against Terrorism (CTPAT) 6-11 Contact List 12 Section 2 Purchase Orders 13 Purchase Order/Terms 14-19 Letters of Credit 20 Quick Response Program 21 +/- 20% Shift Policy 22 Overage and Shortage Policy 23-24 Late Policy 25 Purchase Order Change Notice (POCN)

2 Procedures 26 Defectives 27-28 Liquidating Goods Procedures/ Disposition Action Form (DAF) Process 29 DAF Template 30 Bulk Swatch Process 31 Bulk Swatch Card Template 32 Testing Program 33-38 Fabric and Merchandise Inspection Standards 39-49 Technical Package 50-84 Photo/Retail Samples 85 Photo Sample Order Form (Direct) 86 Retail Sample Order Form (Retail) 87 Photo/Retail Sample Label or Sticker 88-89 Invoice Cover Sheet 90 Invoice Procedures 91 Invoice Submission Envelope 92 Section 3 Packing/Non-Compliance 93 Garment Labeling 94 J.

3 crew Canada Health Law Label 95 Non-Compliance Chargeback Description 96 Non-Compliance-Example 98 Revision: 2017-08 -10 3 Section 1 Overview INTRODUCTION Revision: 2017-08 -10 4 Welcome to ! As we begin our partnership, we furnish the information in this manual as a guideline to manufacturing standards, processes and procedures. The contents of this manual apply to all Agents, Vendors, Suppliers and any of its subsidiaries/divisions. While recognizes that there are different legal and cultural environments in which facilities and offices operate throughout the world, this manual sets forth the basic minimum requirements all facilities and offices must meet in order to do business with We strongly encourage Suppliers to exceed these standards and promote the best practices and continuous improvement throughout their relationship with This manual is located on the Imports Website ( )

4 And should be distributed to all account representatives throughout your organizations. All updates and addendums will be communicated and posted to the Website accordingly. We ask you read through all areas of this manual and direct any questions/issues to the contact person noted in each section. If there is not a suggested contact department listed or you need additional information on a topic not included in this manual, please contact the Production Department. Social Compliance Program Revision: 2017-08 -10 5 is committed to a standard of excellence in every aspect of our business, including legal, ethical and responsible conduct in all of our operations.

5 The Social Compliance Program has been developed in order to ensure that all Suppliers are equally committed to these standards. All factories, subcontractors, vendors and agents ( Supplier ) are expected to cooperate fully in all Social Compliance efforts. The Social Compliance Program Supplier Guidelines set forth the fundamental requirements to which all Suppliers must adhere. The Social Compliance Program Supplier Guidelines are posted under "Downloads" on All Suppliers to are required to annually review and certify compliance to the Supplier Guidelines through For any questions or comments relating to the Social Compliance program, please contact us by email at CTPAT CUSTOMS AND TRADE PARTNERSHIP Revision: 2017-08 -10 6 AGAINST TERRORISM Group Inc.

6 Has successfully been certified for membership in the Customs-Trade Partnership Against Terrorism program (C-TPAT). C-TPAT is a joint government-business initiative to build cooperative relationships that strengthens overall supply chain and border security. Through this initiative, Customs is asking businesses to ensure the integrity of their security practices and communicate their security guidelines to their business partners within the supply chain. Therefore, as our business partner, we are asking you to review and confirm that you will make every effort to comply with the following list of recommendations set forth by Customs.

7 Please do so by logging on to our imports website ( ) and follow the instructions. MANUFACTURER SECURITY RECOMMENDATIONS Revision: 2017-08 -10 7 CUSTOMS-TRADE PARTNERSHIP AGAINST TERRORISM (C-TPAT) Develop and implement a sound plan to enhance security procedures. These are general recommendations that should be followed on a case by case basis depending on the company s size and structure and may not be applicable to all. The company should have a written security procedure plan in place that addresses the following: Physical Security: All buildings should be constructed of materials which resist unlawful entry and protect against outside intrusion.

8 Physical security should include: Adequate locking devices for external and internal doors, windows, gates, and fences. Segregation and marking of international, domestic, high-value, and dangerous goods cargo within the warehouse by a safe, caged, or otherwise fenced-in area. Adequate lighting provided inside and outside the facility to include parking areas. Separate parking area for private vehicles separate from the shipping, loading dock, and cargo areas. Having internal/external communications systems in place to contact internal security personnel or local law enforcement police.

9 Access Controls: Unauthorized access to the shipping, loading dock and cargo areas should be prohibited. Controls should include: The positive identification, recording, and tracking of all employees, visitors and vendors. Procedures for challenging unauthorized/unidentified persons. Procedural Security: Measures for the handling of incoming and outgoing goods should include the protection against the introduction, exchange, or loss of any legal or illegal material. Security controls should include: Having a designated security officer to supervise the introduction/removal of cargo.

10 Properly marked, weighed, counted, and documented products. Procedures for affixing, replacing, recording, tracking, and verifying seals on containers, trailers, and railcars. Procedures for detecting and reporting shortages and overages. Procedures for tracking the timely movement of incoming and outgoing goods. Proper storage of empty and full containers to prevent unauthorized access. Procedures to notify Customs and other law enforcement agencies in cases where anomalies or illegal activities are detected or suspected by the company.