Li & Fung Bulk Fabric Approval Process Speed Quality Consistency Org Evolution Teams 3.18.14

Li & Fung Bulk Fabric Approval Process: Who: Brand, Production and Li & Fung for Org Evolution Brands only What: Li & Fung will review and approve Bulk Fabric Approvals for quality, hand feel, basic wash, construction, finishing and weight as it directly compares to the approved Raw Material Form-Confirmation Why: To increase approval speed, fabric quality consistency and efficiency When: Rolling start for Fall 14 and fully in place for Spring 15 for solid knit and wovens, both non washed and basic washed programs How: By implementing a robust process that will govern and ensure fabric quality and consistency * No Change to current Color Approval Process

Heavily Washed/Color Loss Programs Sweater Yarns Li & Fung Bulk Fabric Aesthetic Approval Process: What it Covers: Solids Knits, non & basic wash Woven, non & basic wash What it Doesn’t: Prints Yarn Dyes & Heathers Denim Garment Dyes Heavily Washed/Color Loss Programs Sweater Yarns *basic wash is a rinse wash w/silicone or softener w/little or no color loss *Testing applies to all approvals

Li & Fung Bulk Fabric Approval Process: Ownership Step 1: Submission of Fabric Standard Step 2: Approval of Fabric Standard Step 3: Bulk Fabric Production Starts Step 4: Submission of Bulk Fabric for Approval Step 5: Approval of Bulk Fabric Mill/Garment Supplier Kohl’s Design/Brand Mill/Garment Supplier Garment Supplier Li & Fung *Submits Raw Material Form *Fabric Development Test Report , either 3rd party or internal, submitted to Li&Fung *Approves fabric for quality, hand feel, wash, finishing, weight, construction. This approval sets the standard for bulk production *Li & Fung must confirm fabric meets performance standards through either internal mill report or 3rd party test report *In cases where gmt wash is approved separately from base fabric, Kohl’s assures that wash standard is also established *Proceeds with initial bulk production and submits Bulk Approval Form- to Li&Fung *On basic gmt wash programs, mill sends initial bulk lots to garment supplier for wash execution and sends to Li&Fung for approval quality approval *Submits bulk fabric to 3rd party testing lab along with the Raw Material Form – Confirmation *Mill should not ship bulk fabric until they have an approved test report or a waiver from Kohl’s or Li&Fung along with a Bulk Approval for color and quality from Li&Fung or Kohl’s. **This is mandatory for high risk & consolidation fabric as identified by Kohl’s * Post color approval, Li&Fung MR compares Bulk Approval Form –to approved Raw Material Confirmation Form . If matching, Li& Fung approves for bulk production and sends the Bulk Fabric Approval swatch to Kohl’s color office marked “L&F approved for Quality for Kohl’s reference only”