Dsseldorf, 07 October 2013

Re: C&A Global Late Shipment Policy

Dear supplier, C&As Sourcing vision is to build a world class supply chain capable of delivering outstanding performance in quality, delivery, price, and compliance with highly capable, sustainable suppliers with whom we have shared values and a common business objective. To support us in tracking our progress we have defined and implemented in 2013 a C&A supplier scorecard reflecting the five key performance indices - Delivery, Quality, Compliance, Product Execution and Profit Contribution. Our on time delivery target is 100% for advertised styles and > 92% for overall performance. The commercial impact to both the supplier and retailer on products shipped after the confirmed Latest Delivery Date (LDD) can have significant negative results on sales and profitability. It is common industry practice to impose counter measures and penalties to offset lost margins and cover expedited handling costs on late shipments. As a C&A supplier you have already agreed to our General Delivery Instructions (GDIs), and to be transparent, consistent, and global in our supplier policies please note C&As Glo bal Late Shipment Policy below.

C&A Buying has the right to evoke one or more of the below remedies when deliveries are late: Option 1 Option 2 Cancel all or a portion of the order without liability C&A may accept the goods with a late shipment discount as defined below: a) Up to 4 days - no discount if proactively communicated to C&A Buying and engaged in remedies to improve delays b) 1 to 10 days late - 5% discount c) 11 to 14 days late - 10% discount d) > 14 days - 1% additional discount per day

Note:

The above remedies are separate from the current Fire Brigade debit charges Special circumstances will be considered under Force Majeure conditions

Below are the most common areas which can be addressed to improve on time delivery performance. 1. 2. 3. 4. Proper capacity planning and only accepting orders which can meet the agreed delivery dates, manufactured within C&A approved production facilities Proactive communication and problem solving on potential delivery issues "First Time Right" approach in both sample development and in delivering quality products to the Inspection Centers or Distribution Centers Critical path management of raw material commitments including nominated sources to ensure on time delivery

Building world class sourcing capabilities together, Sincerely, Barbara Caalim Director of Global Sourcing Management EU