Rev: March 2010

DEFECT CLASSSIFICATION – ZONES When inspecting garments for cleanliness and fabric flaws, the location of the defect and its effect on the appearance and performance of a garment must be taken into consideration. Size and severity also have an impact on the acceptability. Defects which are noticeable on a garment but are not in the focal area of the garment may not be a cause for garment rejection if the garment’s performance, fit or general appearance is not impaired. Our standard defect classification for all merchandising categories; Fabric, Appearance, Color, Shade, Workmanship & Construction, Cleanliness and Packing is classified using zones.

Zero Tolerance – Zero Tolerance covers the entire garment and applies to any sharp objects or a chemical product that poses a safety hazard to the customers. (Example: broken needles, sharp burrs/hardware, harsh chemical reaction to the end user). Zero tolerance will be classified under CRITICAL defect.

CRITICAL DEFECT: A defect likely to result in a hazardous or unsafe condition for an individual using the product or fails to meet Government mandatory regulations. One Critical Defect found during the inspection would cause the final QA audit to fail. The failure will be resulting in a 100% inspection by factory to remove all critical defect items prior to re-inspection again by a 3rd party auditor or PacSun QA Manager.

Zone A - Where the visual appearance of the garment is considered a MAJOR area of critical importance.

MAJOR DEFECT: Anything that adversely affects the appearance, performance including fit or customer satisfaction to a degree that would provide a discerning customer with justification for no purchase, a return or complaint.

Zone B – Where the visual appearance of the garment is considered a MINOR area of importance but not critical. This is not as noticeable to the person wearing the garment or to an observer at first glance.

MINOR DEFECT: Any variation from the standard that is not sufficient in degree to be classified as major, and that would not provide a discerning customer with justification for non-purchase, a return or complaint.

Counting of defects: When the number of defects is being recorded, a single defect is taken into account. In every case it will be the most serious defect encountered by the individual sample being inspected regardless of the characteristic. Example, when a garment being inspected contains both a Major defect and a Minor defect the most severe defect (Major defect) will be classified a defect on the inspection report.

Minor defects will be tallied at the end of the inspection by using the formula: 3 minor defects = 1 major defect.

e.g. If the inspectors totaled 10 minor defects on the visual report, the minors will be calculated using the formula above. In this case 10 minors = 3 majors. All major defects will be added to the major defects list. Exceeding the allowed amount of major defects will results in a failed inspection and must be 100% screen for all major defects encountered.

PACSUN DEFECT CLASSIFICATION (IN-LINE & FINAL QUALITY INSPECTIONS)

GENERAL DEFECTS REV: 12/1/2010

FABRIC ZONE A ZONE B

MAJOR MINOR (Zone locations refer to defect Classification-Zones Process)

1). Drill holes or pin holes (any size) X2). Visible knots, slubs, pilling and snags X X3). Missing yarns X X4). Fabric weight / oz different from PacSun approved sample X5). Hand feel different from PacSun approved sample X6). Skewed/bowed by + 1/4" X7). Knitting/weaving defects/flaws X X8). Misprint fabric /printing defects X9). Washing marks (permanent creases) X X10). Foreign matter / yarn contamination -Obvious X X

APPEARANCE, COLOR, SHADE ZONE A ZONE B

MAJOR MINOR (Zone locations refer to defect Classification-Zones Process)

1). Shading or dye lot deviation within garment panels X2). Shade or dye lot deviation from garment to garment within the shipment X3). Color bleeding or staining X

4). Plaids, checks, horizontal /vertical stripes not matching front within 1/8" X

5). Plaids, checks, horizontal/vertical stripes not matching sideseams within 1/4" X6). Interlining or fusible interfacing not compatible to base fabric causing bubble or puckering X7). Misplaced embroidery/screen printing by more than 1/4" X X8). Incorrect embroidery, color or silkscreen printing X9). Embroidery /Silkscreen printing letters or symbols less than 90% legible X10). Embroidery needle cuts X X11). Embroidery /Silkscreen printing peeling or cracked X12). Embroidery backing excessive X13). Twisted body/torque for T-Shirt exceeding 5%. X

APPEARANCE, COLOR, SHADE ZONE A ZONE B

MAJOR MINOR (Zone locations refer to defect Classification-Zones Process)

14). Twisted legs over 1/2" (sideseam twist around to the front of pant) X15). Uneven leg by more than 1/2" X16). Ribbons, piping, lace, bows and draw strings missing X17). Shine marks on the surface X18). Bleach or stone marks on surface of garments X X19). After wash streaks or striations (washing lines) X X20). Press marks resulting from clamps used during chemical processing or hangers X21). Pressing-poorly pressed garments X X22). Pressing- absence of pressing when the seam, pleats or gatherings is specified to the outside of the garment X23). Pressing-absence when seam is specified to the inside of the garment X24). Panels- Misaligned front and back panel more than 1/4" X25). Hi & Low Front pockets or flaps not to exceed 1/8" X26). Hi & Low back pockets or flaps not to exceed 3/16" X27). Back pocket smile over 1/8" X28). Pockets /Flaps with asymmetrical corners, shapes or position X29). Front & back pkts slanted or flaps slanted by more than 3/16" X30). Mismatch pocket 4 way plaid not to exceed 1/8" X31). Collar overlap not to exceed 1/8" X32). Collar overlap on the bias not to exceed 1/4" X33). Collar-point button hi-low over 1/8" X34). Uneven cuff width over 1/8" X35). Left & right sleeve uneven over 3/8" X36). Seams twisted, puckered, or pleated affecting appearance X37). Edge of flap, collar, cuff, placket rolled up X38). Twisted cuff, lace, collar, turtle neck X39). Beltloop slanting over 1/8" X40). Beltloop opening up to +- 1/8" X41). Locker loops, frt or centered beltloop misplaced by more than 1/4" from spec X42). Beltloop sideseam off spec by more than 3/8" X43). Beltloop unbalance ( hi -low) by more than 1/8" X44). Beltloop missing fusing (inside) X

45). Inconsistent pleat depth- right vs. left over 1/8" X

APPEARANCE, COLOR, SHADE ZONE A ZONE B

MAJOR MINOR (Zone locations refer to defect Classification-Zones Process)

46). Waistbands hi-low by more than 1/8" (button) X47). Uneven waistband width by more than 1/8" X48). Zipper tape exposed when the fly is closed X49). Hardware insecure or missing (snaps, rivets, buttons, zipper slider…) X50). Uneven leg length between L & R not to exceed 1/2" (pants) and 1/4" (shorts). X51). Misplaced rivets & buttons up to 1/8" X52). Misaligned yokes at the back rise, frt rise not to exceed 1/8" X53). Inconsistent zipper setting causing wavy zipper X54). Side edge of pocket exposed from under side of flap up to 1/16" X55). Shoulder tape missing by 1/2" X56). Missing or broken loops (sweater) X57). Loose floats (sweater) X58). Dust & yarn ends on the inside & outside of garments (sweater) X59). After wash hand feel different from PacSun approved standard X60). Distorted garment from excessive stretching during pressing or wash X61). Staining of pockets bags, garment or accessories during wet process (Re-Dip results) X62). Any area of the garment with holes due to needles or scissors X63). Holes due to abrasive wash (not approved by PacSun) X X64). Wash Standard or color swatch outside of approved standard X65). Pile direction not as specified X66). Label missing or incorrect X67). Sagging or rolling frt pockets X68). Tread tension too tight that create excessive puckering on seams and hems X69). Sweater should not have long float stitches that can be caught or broken when worn. X70). Sweater tensions too loose that reduces the recovery of shape X71). Sweater tensions too tight adding weight and stiffness to garment X72). Sweater, fleece or Knit tops with arm hole shape showing a slight curve or straight instead of having a "S" shape. X73). Sweaters, fleece or Knit tops with excesses fabric around the arm holes and pockets due to over pressing or pulling. X

74). Sweaters, fleece or Knit tops peaking at shoulder point by more than 1/4" X

APPEARANCE, COLOR, SHADE ZONE A ZONE B

MAJOR MINOR (Zone locations refer to defect Classification-Zones Process)

75). Sweaters, Fleece or Knit tops can not have shoulder seams fall back by more than 1/4". X76). Sweater, fleece, Knit tops must have center front, center back and sideseams not pulling back or forward by more than 3/8". X77). Sweaters, Fleece ,Knit or woven tops cannot hick by more than 1/2" X78). Misaligned sleeve & sideseam junction up to 1/4" X79). Trims materials with wrong color, width or shape X80). Burn or scorch marks X

WORKMANSHIP & CONSTRUCTION (SEAMS/STITCHING) ZONE A ZONE B

MAJOR MINOR (Zone locations refer to defect Classification-Zones Process)

1). Lock Stitches- one broken or skipped per operation X2). Lock Stitches- two or more broken or skipped per operation X3). Skipped or broken chain stitch/overlock stitch X4). Skipped or broken cover stitch one per operation X5). Skipped or broken cover stitch two or more per operation X6). Any unraveling, fray, raw edges or seams visible before and after wash X7). Missing tacks and /or back stay stitch (unravels seam or loosen attachment) X8). Stitch repair that is not sewn exactly stitch on stitch with an overlap of at least four stitches at one end. X X9). Improper stitch repairs -obvious X10). Construction not conforming to spec (i.e. wrong seam type...) X11). Ragged/Inconsistent edge (seam is extremely ragged or rolls inside the stitch) X X Minor-Inside seams12). Wavy seams-stretch or non stretch fabrics X13). Wrong color, type, size of thread X14). Disappearing stitches in stretch denim (thread looks smaller on seams in wrap direction than in the weft direction) X X Major if a deco stitch.15). Thread tension were it creates obvious puckering or loose stitching X X16). Loose stitching - obvious X17). Run off stitches up to 1/4" X X18). Ends of stitching not properly secured, tied in, caught in other seams, back-

stitched or tacked X

WORKMANSHIP & CONSTRUCTION (SEAMS/STITCHING) ZONE A ZONE B

MAJOR MINOR (Zone locations refer to defect Classification-Zones Process)

19). Broken threads due to chemical degradation (harsh washes) X X unless specified on Tech Pack/spec20). Broken threads due to chemical degradation at non-functional panel x X bk pkt hems, btm hems.21). Broken stitches due to needle cutting ( wrong needle points, dull needles …) X X22). Button hole incorrect direction/reversed X23). Button hole too small or big for button type or diameter X24). Button hole stitch broken or skipped X25). Button hole slanted or off centered by more than 1/8" X26). Insecure button sewing X27). Loose or tight stitch tension of buttons & button holes X28). Zipper tape/teeth not flushed to waistband more than 2 zipper teeth exposed X29). Missing or wrong placement care instructions/symbols X30). Elastic seams uneven X31). Ribbons, piping, lace, bows and draw strings not secured to garment X

32). Label/s sewn with monofilament yarn X unless specified on Tech Pack/spec

33). Stitches per inch (SPI) deviation of more than plus one or minus one X34). Sweater /knitting not symmetrically balanced X35). Sweater/Knitting yarn ends not dbl knotted/secure X36). Sweater/Knitting yarns with yarns loose and not properly knitted/locked into seams X37). Sweater/Knitting yarns not tucked into seams neatly. X38). Knits tops not symmetrically balanced at neck opening, arm holes and frt panels X39). Bartacks missing, incorrect size, non-secured X40). Missing bar tacks, destruction holes, additional stitches for aesthetics purposes X41). Edge stitch margin unevenness X

CLEANLINESS ZONE A ZONE B

MAJOR MINOR (Zone locations refer to defect Classification-Zones Process)

1). Any tape, seconds stickers or soabar left on garments (any vendor /outside stickers not allowed) X2). Any stains, spoilage, spots or oil 3/8" or less X X3). Staples, pins or swift tacks left in garment X4). Uncut sewing threads on the outside of garment exceeding 1/4" X5). Uncut or attached threads on the inside exceeding 3/4" X

6). Chalk, pen or pencil marks visible X XCLEANLINESS ZONE A ZONE B

MAJOR MINOR (Zone locations refer to defect Classification-Zones Process)

7). Mildew or Heavily odor garments X8). Spots & stains of a permanent nature or those that when removed leave a ring or other ring surface marks anywhere on the garment X9). Foreign matter - obvious (threads, fly yarns, debris sewn in) X X10). Brass zipper, buttons, rivets leaving stains or contamination on product due to oxidation or corrosion X

PACKING, LABELS, TAGS ZONE A ZONE B

MAJOR MINOR (Zone locations refer to defect Classification-Zones Process)

1). Missing or Wrong placement or Incorrect carton stickers, hang tags, UPC tickets X2). Incorrect folding /packing X3). Damaged cartons, labels, hang tags X4). Smeared barcodes or instructions X5) . Insecure tape X6). Open or tampered cartons X7). Incorrect size cartons X8). Incorrect quantity in cartons X

REV: 12/1/2010

(SKIRTS) (HOODIES)

(SWEATERS) (LONG SLEEVE SHIRTS)

PACSUN DEFECT CLASSIFICATION - ZONES* Zone B areas are identi�ed in below illustration;

All other areas = Zone A

2”B 2”B

to Elbow

B5” 1”

1”Bto Elbow

B 5”

1”B

1”

to Elbow

B5”

1”

B1”

to Elbow

B 5”

1”1”

B

to ElbowB5”

1”

1”

B

to Elbow

B5”1”

1” B

BB

B =RibHeight

BB

B =RibHeight

B

B

B =RibHeight

(Long Pants)(Shorts-Capris-Bermudas-Cut O�s)

(Cami-Tank Tops)(Short Sleeve-Long Sleeve)

* Zone B will not apply to inseams that are shorter than “Above the Knee”

**All Other Inseam Lengths will follow the above illustration.

PACSUN DEFECT CLASSIFICATION - ZONES* Zone B areas are identi�ed in below illustration;

All other areas = Zone A