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$ $

We have found opportunities for im

provement in this factory. Please review this re

cap with the appropriate personnel within your factory

and with the vendor(s). A

s part of our ongoing audit program, an auditor will b

e returning to your factory to check on your progress.

There

is no need to make an appointment, a

s all Target compliance audits a

re unannounced.

Failure to correct issues id

entified during an audit co

uld result in this fa

ctory no longer receiving orders fo

r Target or TSS/AMC.

De no corregir problemas identific

ados durante una auditoria la fabrica dejara de recibir ordenes de produccio

n de Target or TSS/AMC.

18h and 12f: We will p

rovide training and post n

otice in productio

n area.

7b & 10q: We will co

rrect those issu

es within one week.

Auditor reviewed fin

dings in manager's language? Yes

Language used to review the Audit Recap Chinese

Factory Representative's Signature

Factory Representative's NameDate

Mr. Ma Jiangang

Factory Representative's Title

Deputy GM

Factory Representative's Signature

Factory Representative's NameDate

Mr. Jon Zhan

Factory Representative's Title

Business manager

Factory Representative's Signature

Factory Representative's NameDate

Ms. Gu Lim

ei

Factory Representative's Title

HR

Factory Representative's Signature

Factory Representative's NameDate

Mr. Sun Xue

Factory Representative's Title

Production manager

Auditor's Signature

Date

Copyright 2006 Target Corporation.

This document and the contents within are the property of Target Corporation and its subsidiaries (collectively “Target”).

They are for the sole use of designated employees of Target as well as certain authorized business partners and shall not be

reproduced, disseminated, or disclosed in any form to any party whatsoever without the express written consent of Target.

Global Compliance Full Audit

Factory Audit Recap:

Segger Color Printing Co. LTD

Factory ID: 16764998

Audit Number: F16764998-CN-03

IssueID Issue

Action

Correct By

18h Employees do not understand the pay

structure and/or the deductions taken

from their pay.

Educate all employees on the pay

structure and details of any

deductions taken from their pay.

Document and post the basic pay

structure and deduction information

in a visible location for all employees

review.

4/13/2011

Comments:

Three out of ten interviewed employees did not know the overtime pay structure.

12f Employees do not know what to do in

case of an emergency.

Train all employees on all factory

emergency procedures including how

to operate the fire extinguishers,

calling the fire brigade, and

understanding the evacuation plan.

4/20/2011

Comments:

Five out of ten interviewed employees did not know how to operate fire extinguishers.

4aToilets in the factory do not offer

privacy (no door and/or gender

markings).

Install doors and gender markings

on all toilets to allow for privacy.

4/6/2011

Comments:

The male toilet on 2F did not have gender marking.

7bElectrica

l cables/wires are exposed.Ensure that all electrica

l cables/wires

are in compliance with local health

and safety regulations.

4/13/2011

Comments:

Plugs wires of some floor fans.

10q Machinery does not have functioning

safety features.

Install proper safety features on

machinery per local health and

safety regulations. Monitor the

safety features on a regular basis to

ensure they are not removed.

4/13/2011

Comments:

1. Some fans guards in the production area were too wide.

2. One rolling hook did not have anti-off device.

Factory Comments

Page 1 of 3

YellowYellowYellowYellow assessmentassessmentassessmentassessment

***Please***Please***Please***Please readreadreadread carefull

ycarefullycarefullycarefully asasasas somesomesomesome ofofofof thethethethe f

ollowingfollowingfollowingfollowing informationinformationinformationinformation

hashashashas beenbeenbeenbeen updated***updated***updated***updated***

RERERERE:::: Factory:Factory:Factory:Factory: SEGGERSEGGERSEGGERSEGGER CO

LOURCOLOURCOLOURCOLOUR PRINTING(S

HENZHEN)

PRINTING(SHENZHE

N)PRINTING

(SHENZHEN)

PRINTING(SHENZHE

N) CO.,LTD.CO.,LTD.CO.,LTD.CO.,LTD. ////

深圳市信傑彩藝印

刷((((深圳))))有限公司//// 28029957280299572802995728029957

AuditAuditAuditAudit DateDateDateDate (MM/DD/YYYY):::: 4/

29/20104/29/20104/29/20104/29/2010

Dear Supplier:

We would like to thank yo

u for your cooperation dur

ing our Ethical Sourcing au

dit on 4/29/20104/29/20104/29/20104/29/2010 (M

M/DD/YYYY)

for SEGGERSEGGERSEGGERSEGGER COLOURCOLOURCOLOURCOLOUR PRINTING(SHENZHE

N)PRINTING

(SHENZHEN)

PRINTING(SHENZHE

N)PRINTING

(SHENZHEN) CO.,LTD

./CO.,LTD./CO.,LTD./CO.,LTD./深圳市信傑彩藝印刷 ((((深圳 ))))有限公司/28029957/28029957/28029957/28029957

(factory name/factory ID).

The above stated factory h

as received a“YellowYellowYellowYellow” asse

ssment. Thefactory had v

iolations and/or Conditions

which were deemed to be

medium risk. Please refer to the sn

ap-shot report and work clo

sely with your factory to

remedy theseviolations to p

revent futurereoccurrence

.

The followingconditions ap

ply to this factory:

• Orders can be placed.

• Placement oforders in this

factory for Wal-Mart produ

ction is at thediscretion of

Wal-Mart Sourcing /

Merchants.

• Orders can be shipped.

• Follow-up audit will be con

ducted within365365365365 days from

audit date listed above.

•••• SupplierSupplierSupplierSupplier shallshallshallshall accommodateaccommodateaccommodateaccommodate withwithwithwith follow-u

pfollow-upfollow-upfollow-up auditauditauditaudit schedu

ledscheduledscheduledscheduled bybybyby Wal-MartWal-MartWal-MartWal-Mart desig

nateddesignateddesignateddesignated 3333rdrdrdrd partypartypartyparty auditauditauditaudit

firm:firm:firm:firm:

• Be responsible for the aud

it fees and associated cost

• When your company is conta

cted by Wal-Mart designated 3

rd Party Audit Firm for audit fee c

ollection,

you will have5 working da

ys to remit payment.

• If the audit fee has not bee

n paid in full to the respect

ive audit firms within 5 wo

rking days, Wal-Mart

Ethical Standards Team will be notifie

d to escalatethe matter to

the respective sourcing an

d

merchandising team to avoid furth

er delay in the process.

• The completed action plan

by the factorymanagement

must be presented to the a

uditor duringthe follow-up

audit.

•••• PleasePleasePleasePlease notenotenotenote thatthatthatthat youyouyouyou cancancancan submitsubmitsubmitsubmit aaaa ““““FactoryFactoryFactoryFactory InactivationInactivationInactivationInactivation

RequestRequestRequestRequest”””” onlineonlineonlineonline viaviaviavia Re

tailRetailRetailRetail LinkLinkLinkLink ifififif youyouyouyou decidedecidedecidedecide

notnotnotnot totototo useuseuseuse thisthisthisthis factoryfactoryfactoryfactory inininin orderorderorderorder totototo avo

idavoidavoidavoid follow-upfollow-upfollow-upfollow-up au

ditauditauditaudit bybybyby Wal-Mart.Wal-Mart.Wal-Mart.Wal-Mart. butbutbutbut thatthatthatthat FCCAFCCAFCCAFCCA auditauditauditaudit maybemaybemaybemaybe

requiredrequiredrequiredrequired forforforfor reactivation.reactivation.reactivation.reactivation.

SocialSocialSocialSocial AccountabilityAccountabilityAccountabilityAccountability ReportReportReportReport

FactoryFactoryFactoryFactory DetailsDetailsDetailsDetailsAuditAuditAuditAudit ReportReportReportReport DetailsDetailsDetailsDetails

Factory Name: Segger Color Printing (Shenzhen) Co., Ltd File Number: 10101440090

Address: B building, CaiYin Factory, Sha - Gong-Ao Industrial Zone, ShiYan Street, Bao An District

Shenzhen GuangdongDate Of Audit: June 1, 2010

Vendor/Agent: Segger Color Printing (Shenzhen) Co., Ltd

Country: ChinaAuditor Names: Tracy Huang

Contact Person: Ms. GuEstimated Number of Factory Employees: 235 employees

Products manufactured for Staples: Color box

Time In: 10:00 Time Out: 17:35

ScoringScoringScoringScoringResultsResultsResultsResults

SectionSectionSectionSection #### SectionSectionSectionSection NameNameNameName CriticalCriticalCriticalCritical FoundFoundFoundFound PtsPtsPtsPts PossiblePossiblePossiblePossible PtsPtsPtsPts AwardedAwardedAwardedAwarded - Certified Vendor - 1 Year Audit Exemption

1 Child Labor Yes No 11 11 - Conditional Pass - CAP Required

2 Forced Labor Yes No 12 12 - Failed

3 Health and Safety No 4 4 ResultResultResultResult KeyKeyKeyKey

4 First Aid and Medical Services No 7 6

5 Facilities Yes No 39 32 80%80%80%80% orororor HigherHigherHigherHigher ==== CertifiedCertifiedCertifiedCertified VendorVendorVendorVendor

6 Food Preparation and Services No 7 7 70%70%70%70% ---- 79%79%79%79% ==== ConditionalConditionalConditionalConditional PassPassPassPass withwithwithwith CAPCAPCAPCAP

7 Fire Safety and Emerg. Evacuation Yes No 18 17 69%69%69%69% orororor LowerLowerLowerLower ==== FailedFailedFailedFailed

8 Environmental Protection Yes No 8 8

9 Dormitories and Housing No 28 28 TypeTypeTypeType ofofofof audit:audit:audit:audit:

10 Freedom of Association Yes No 3 3 Initial CAP Follow-up

11 Discrimination Yes No 8 8 Re-certification Post Probation

12 Disciplinary Practices Yes No 7 7 PreviousPreviousPreviousPrevious Audits:Audits:Audits:Audits:

13 Working Hours Yes No 11 11 Date: File#: Result:

14 Wages and Benefits No 16 16 Date: File#: Result:

Total Points 170 Date: File#: Result:

Pts Possible 179 Date: File#: Result:

%%%% ScoreScoreScoreScore 95%95%95%95% Date: File#: Result:

AuditorAuditorAuditorAuditor Comments:Comments:Comments:Comments:It was noted that the business license of Segger Color Printing (Shenzhen) Co., Ltd indicated address as B Building, CaiYin Factory, Sha - Gong-Ao Industrial Zone,

Shiyan Street, Bao ‘an District, Shenzhen, Guangdong. However, based on management information and testimonial from “Tian Hao Industrial” management, that as

of Year 2000, “Sha-Gong_Ao Industrial ” is renamed as “Tian Hao Industrial “; therefore, the revised address of Segger Color Printing is now known as B Building,

CaiYin Factory, Tian Hao Industrial Zone, Shiyan Street, Bao’an District, Shenzhen, Guangdong.

QuestionsQuestionsQuestionsQuestions markedmarkedmarkedmarked withwithwithwith anananan XXXX representrepresentrepresentrepresent criticalcriticalcriticalcritical violationsviolationsviolationsviolations

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