Recapping the 8 steps of Build-a-Cap: 1) Choose fabric 2) How many panels? 3) Choose color(s) 4) Choose profile 5) Crown structure 6) Choose back strap 7) Main decoration 8) Add decorating options  In Part 1 of How to Sell Vernon Custom Caps, you determined the construction of your custom cap. Steps 1 through 6 are complete, now on to the decoration phase in Steps 7 and 8. We talked about why you should promote this program – Unique, creative, lucrative, minimal competition Least expensive cap, minimum order amount - $360 commission Take a look at the Powerpoint for the first webinar for more information. You’ll find it on AccountPro after clicking the OEM Program Information link under the Vernon Headwear heading in the Tools and Resources box.

Build-a-Cap in 8 easy steps STEP 7 Apply the main decoration All base cap pricing includes one location embroidery, up to 10,000 stitches and nine thread colors. Anything beyond this single-location embroidery becomes an add-on decorating option. Most add-ons have a cost associated with it, however there are a few no-cost options you can take advantage of.  Embroidery stitch count 9269 Additional embroidery locations - $.44a per cap for up to 3,000 stitches, no tape charge Sell two locations as a package by adding $.22 net to the cap price before you quote Embroidery stitch count 5180 2

Build-a-Cap in 8 easy steps STEP 7 Apply the main decoration Embroidery tips and tricks No copy less than 3/16” tall Serifs on small type will not sew well Standard front panel size, 4” x 2-1/4”, maximum size, 5-1/2” x 2-3/4” (if eyelets don’t interfere) If you want a specific width or height, list it on the order Outlining and/or drop-shadows are not recommended on small type, 3X the stitch count and they won’t sew well If you want lots of copy, break it up into multiple locations  Embroidery stitch count 9269 Embroidery stitch count 5180 3

Build-a-Cap in 8 easy steps STEP 7 Apply the main decoration Embroidery tips and tricks, continued Specify thread colors using a Madeira thread chart or PMS color numbers Some logos have to be modified to sew well You cannot embroider directly onto standard mesh, the holes are too large, use emblems or woven labels You can embroider directly onto pro mesh as long as the type or detail is not to small  Embroidery stitch count 9269 Embroidery stitch count 5180 4

Build-a-Cap in 8 easy steps STEP 8 Change it up with decorating options BACK STRAP OPTIONS In addition to the six standard no-charge strap styles shown in Step 6, there are several other options available.  Back strap options range in price from just a few pennies to add a metal grommet tuck-in, to just under a buck for genuine leather. Consult the Build-a-Cap Worksheet found in the 7V Apparel Price Guide or online at Account Pro to see prices for all the different options. No charge styles are shown on page 7 of the catalog – plastic snap-back, two piece fabric with velcro, t-slide buckle (antique brass or silver), flat metal buckle (antique brass or silver) 1 pc velcro w/ D-ring & loop tab – $.52a Painted metal w/ Grommet Tuck-in – $.38a for buckle, $.13a for grommet Woven label on 2 pc velcro - $.52a Embroidered back strap – $.44a Faux leather – $.52a Nubuck leather – $.57a (caution, consistent colors have been hard to get) Leather - $.78a (caution, consistent colors have been hard to get) For most metal hardware, you can choose between antique brass or silver at no additional charge. Painted hardware will cost extra.

Build-a-Cap in 8 easy steps STEP 8 Change it up with decorating options VISOR TREATMENT OPTIONS The visor is probably the easiest, most visible way to customize the look of your cap.  Our standard, pre-priced options are shown here, but you’re not limited to these. Nearly anything you can think of can be created at the factory. It would require a custom quote from our overseas cap coordinator. Crescent visor w/ piping - $.78a Wrapped visor - $.13a Ridge visor - $.65a Duck visor - $.08a Binding around visor - $.16a Frayed visor - $.21a New moon visor - $.49a Woven label sandwich visor - $.47a Sandwich visor - $.13a Double sandwich visor - $.31a Spotlight visor - $1.20a (includes cover stitch and embroidery in spotlight (up to 3,000 stitches) Embroidered visor - $.44a (up to 3,000 stitches) 6

Build-a-Cap in 8 easy steps STEP 8 Change it up with decorating options CONSTRUCTION OPTIONS Extra touches here and there set your cap design apart from the rest.  Using mesh panels, contrasting color topstitching, or pro-stitch along the bottom front edge where the crown meets the visor, doesn’t add to the base cost of your cap. Other options shown do have a cost associated with them. Mesh panels – nc Contrasting stitching – nc Pro Stitch – nc Mixed fabrics – quote Reflective piping – $.78a Antique metal eyelets – $.02a ea Painted metal eyelets – $.05a ea Wrapped back opening – $.08a Custom woven label – $.13a and up, have quoted Distressed fabric overlay – $2.08a Terry sweatband - $.26a Colon sweatband – $.52a Printed tape in crown - $.21a 7

Build-a-Cap in 8 easy steps STEP 8 Change it up with decorating options ADDITIONAL DECORATION Deliver the “wow” factor when you add custom decorating treatments like these.  Most common addition is second or third location embroidery. Custom molded decorating treatments, such as a stamped buckle, metal emblem or rubber applique, usually involve a mold or die charge in addition to a per-piece charge. The options are endless, take advantage of our experience to get unique decoration methods quoted. 3D embroidery - $.80a Small woven label, added to a seam - $.13a, flat woven labels or larger labels will cost a little more, best to have them quoted Be aware that some of these options will require a mold charge and may delay production 8

Build-a-Cap in 8 easy steps STEP 8 Change it up with decorating options UNIQUE IS KEY Here’s some additional ideas for creating a unique cap for your customer  Everything shown here would need to be custom quoted by our overseas cap coordinator. Did you see a sharp cap design somewhere and would like to offer your customer something similar? Take pictures of it and send to us at capvirtuals@vernoncompany.com For ideas – AccountPro – Tools/Resources – OEM Cap Program Image library Visor templates Cap templates 9

VIRTUAL SPEC REQUEST FORM VIRTUAL CAP SPECS SHOW & SELL Virtual cap specs are an inexpensive way to generate interest in custom caps with your customers. For $5 you can have a custom cap designed with your customer’s logo on it. You’ll receive a PDF that you can either forward in an email or print and take to your customer. A great conversation starter!  *FIND THE FORM* VIRTUAL SPEC REQUEST FORM Located on Account Pro, at the bottom of the center column of the home page. Under “VERNON HEADWEAR”, click “OEM Program Information”, then click “OEM Build-A-Cap Worksheet with pricing”. This will download an .xls spreadsheet to your computer, fill it out and email with vector art to: capvirtuals@vernoncompany.com Test your design skills with a virtual, we’ve put a small charge on them to control our workload. Virtual order form allows you to get as detailed as you want or let us do the work. 10

ACTUAL SPEC REQUEST FORM ACTUAL CAP SPECS produced at the factory Allow 4 weeks production time PUT IT RIGHT IN THEIR HANDS For $25, you can have an actual cap produced, just like a pre-production sample but without an order commitment.  • Showing the customer a completed custom cap with their logo dramatically increases the order conversion rate • You’ll receive $25 extra commission if an order for the cap is written within 30 days, exactly as sampled • If order isn’t written, you have a unique sample cap to show to your next customer *FIND THE FORM* ACTUAL SPEC REQUEST FORM Located on Account Pro, at the bottom of the center column of the home page. Under “VERNON HEADWEAR”, click “OEM Program Information”, then click “OEM Build-A-Cap Worksheet with pricing” This will download an .xls spreadsheet to your computer, fill it out and email to Jo Dannels at jod@vernoncompany.com 11

Congratulations, you’re a cap expert. HAVE FUN WITH IT It’s fun to find unique ways to convey your customer’s brand image with custom headwear. The more custom and unique you make it, the more your cap will stand out from other more standard designs. They won’t want to settle for an ordinary cap again after they see what can be achieved with custom!  Don’t pre-set limits on what a client will spend or how many cap’s they’ll use Sell domestic decorated caps to fill the delivery gap if need be Begin discussing the next order shortly after they receive their first one If the customer can use 12 caps per month, this program makes sense for them STILL A LITTLE LOST AND SLIGHTLY OVERWHELMED? No worries -- Vernon’s cap designers can help if you don’t know where to start. Just send us your customer’s logo, we’ll ask a few questions and then take it from there. 12