Mervyns LLC Domestic Transportation Routing Guide Table of Contents

Mervyns LLC Domestic Transportation Routing Guide Table of Contents What s New? Overview DC Addresses and phone numbers Consolidator Addresses and service zones General Routing Instructions Mervyns Web-Based Routing SMART VENDOR ORDER ENTRY SYSTEM Routing Instructions & assigned carriers New Vendor instructions Ship Windows BOL Instructions Loading of Shipments and Use of Pallets Overflow shipments Prepaid Carrier Selection Prepaid LTL Carriers Prepaid Air/Expedite Carriers Prepaid Truck Load Carriers Air Freight Procedures AIRBILL INSTRUCTIONS 1 2 3 4-5 6 7-8 9-10 11 FedEx Ground Procedures 12 Routing Instructions for Fine Jewelry Departments Routing Instructions for Watches and Bridge Jewelry Fine Jewelry, Costume Jewelry and Watch Packaging Instructions 13 14 Shipping Hazardous Materials Material Safety Data Sheets are required Transportation Violations Violation Table 15 16 17 Who to Call 18

Mervyns LLC Domestic Transportation Routing Guide What s New? What s New September 2007 Going forward ship windows for Southern California based vendors (Except Ship To Mark For) will be Monday, Tuesday and Wednesday only. This change is in recognition of transportation resource demands and traffic patterns Thursdays and Fridays in Southern California. It also allows Mervyns Merchandising systems to better manage ASN processing in support of product flow. Beginning in October of 2007, shipments (except for Ship To Mark For) originating in Southern California will be systematically blocked in the routing system (SMART) from shipping on Thursday or Friday. Plan your shipments accordingly in order to avoid shipping delays. Shipper BOL must contain routing system (SMART) load id in the Special Instructions field of the BOL Carrier contact information added for Mervyns assigned carriers August 2007 June 2007 May 2007 January 2007 Instruction for overflow shipments process Who to call list update regarding TR chargeback dispute questions Instruction to obtain FedEx Ground collect barcodes for FedEx Ground (RPSI) shipment Mervyns Approved Carriers listing update for Prepaid vendors Charges related to driver count of freight will be subject to chargeback Fine Jewelry Packaging Instructions are added The Mervyns LLC Domestic Transportation Routing Guide has been substantially revised New format makes it easier to find needed information Clarification of Mervyns standards Reflects changes to Mervyns systems and service providers Includes additional requirements/chargebacks (effective 3/04/07) 1. Multiple POs with overlapping ship windows from same origin to same destination must be combined when shipped within the same calendar week; 2. Use of pallets for truckload shipments is restricted 3. Load quality requirements imposed for multi stop Truck Load pick ups 4. Service fee for prepaid live unloads at Mervyns DCs 5. ASN and BOL matching requirement for multi trailer shipments 6. A service fee for processing chargebacks 7. Any entry into SMART past the latest ship date requires approval from the buyer The use of PAX for POE orders requires advance approval by Transportation All PAX value added fees will be paid directly by the vendor or assessed as a chargeback Ship days for vendors in the Southern Ca commercial zone 1

Overview Mervyns Domestic Transportation Department with the support of Werner VAS manages the movement of Mervyns merchandise. Mervyns has two Distribution Centers (Fremont, CA; Ontario, CA). Store support is divided geographically between the Distribution Centers. Mervyns contracts with third party consolidation centers in strategic geographic locations. Consolidation points are used as an economic alternative to combine small merchandise shipments into truckload shipments to the Distribution Centers. Currently Mervyns uses domestic consolidation points in the Northeast (North Bergen, NJ), Southeast (Ellenwood, GA), and the Los Angeles commercial areas (Mira Loma, CA). Distribution Center Addresses Distribution Center Name and Address Ontario Distribution Center-(ODC) 1015 Vintage Avenue Ontario, CA 91761 Northern CA Distribution Center (NDC) 48200 Fremont Blvd. Fremont, CA 94538 DC # Phone Contact for Appointments 0996 909-309-4021 0997 510-623-8021 Consolidator Addresses Consolidator Name and Address SCAC Consolidation Zone Consolidated Garments COGM California Zips codes 90000-93099 12450 Philadelphia Ave Mira Loma, CA 91752 (626) 333-2244 National Retail Transportation 2701 16 th Street, Building B North Bergen, NJ 07047 (201) 330-3636 NART Maine, Maryland, New Hampshire, Vermont, Massachusetts, Rhode Island, New York, New Jersey, and Pennsylvania Southeast Consolidators, Inc. 2590 Campbell Boulevard Ellenwood, GA 30294 (800) 822-4162 SOCS Alabama, Mississippi, Georgia, Florida, South Carolina, North Carolina, Tennessee and Virginia 2

General Routing Instructions The instructions and guidelines in this guide cancel and supersede all previously issued transportation instructions. They are additional provisions to the purchase order contract. If there is a conflict between the instructions and guidelines in this guide and the purchase order contract, the terms of Routing Guide shall control. Mervyns reserves the right to change any of the information in this guide at any time. Any exemptions, whether written or verbal, issued by any person other than the Mervyns Transportation Manager or Mervyns Logistics Manager, are invalid and will not be honored. Shipments for which Mervyns LLC pays the freight cost, must be made Freight Collect and shipped in accordance with Mervyns instructions. If shipments are made contrary to these instructions, the vendor will be responsible for any loss, damage, or delay claims in addition to all freight costs. All shipments must be entered into our online routing system (Mervyns SMART Vendor Order Entry System (SMART)) except for shipments direct to DC less than 150 lbs. or less or shipments of combined weight of 150 lbs for both DCs within a consolidation zone. Beginning in October of 2007 shipments originating in Southern California (except for Ship To Mark For) will be blocked from routing on Thursdays and Fridays. If you are shipping from a location within a consolidation zone i.e., (NART, SOCS or COGM), and your aggregate tender for all Distribution Centers on any given day is less that 150 lbs., ship direct to the Distribution Center via FedEx Ground. If your aggregate tender for all Distribution Centers on any given day is over than 150lbs. and you are within a consolidation zone then enter into SMART. Mervyns does not accept vendor delivered merchandise at our consolidation centers. In an effort to promote a more efficient supply chain, Mervyns is requesting that certain vendors located in the Southern Ca consolidation zone ship release purchase orders on a specific day of the week within a purchase order ship window. All vendors in this region regardless of ship window should avoid releasing shipments on Fridays. If your product is hazardous (ORM-D), of extraordinary value (Jewelry depts. 948, 989, 990, 991 and 992), or subject to heat or cold, call 866-810-2836 for alternate routing instructions. All airfreight shipments must be authorized by Mervyns Routing Department. Please call 866-810-2836 for instructions, verification and an air authorization number. Do not enter air or expedite shipments into the SMART website. Deliveries to Mervyns DC s are drop trailers with an appointment only. Please note this on your Bill of Lading for all prepaid shipments. Vendor terms are FOB origin with a freight allowance when shipping from zip codes 068-079, 088, 100-101, 104, 106-118. The freight allowance of $1.45 per carton shipped will be charged against a payment for merchandise. Vendor is responsible for border customs clearance for all Mervyns PO s shipping from Canadian provinces. POE (Port of Entry) shipments must be approved in advance by the Mervyns Transportation Manager. It is the vendor s responsibility in all instances to manage the customs clearance, Pier Pass and drayage from the port. All value added charges for shipments that process through PAX will be assessed against the vendor as a chargeback. For example these services might include unload and sort, create and apply UCC128 labels, create ASN. (Note: PAX is a third party warehouse proving logistics services to the vendor community). If your company prepays freight charges, we strongly encourage you to use our recommended carriers as any failures by your chosen carrier to perform to Mervyns LLC standards could result in a chargeback to your company. Mervyns will not pay any freight that is added to the merchandise invoice. Questions regarding carton labeling, EDI requirements or floor ready should be directed to the appropriate party through the Mervyns Information hot line at 510-727-2000. 3

Mervyns Web-Based Routing SMART VENDOR ORDER ENTRY SYSTEM Mervyns has a request for routing web site called Mervyns SMART Vendor Order Entry System. The web address for the site is https://smart.wernervas.com/mervyns. This web site is also available as a link directly through the MVP web site (Distribution EDI/Transportation/Open Werner Transportation). The vendor request for routing process requires you to post all shipments over 150 pounds at least 48 hours prior to pickup. (By 11:00am CST two business days prior to pick up) EXCEPTIONS NOT TO BE ENTERED INTO THE ONLINE ROUTING SYSTEM Never enter pallet weight Air/ Expedited Shipments Shipments less than 150 lbs unless they are in a consolidation zone. (SOCS, NART or COGM). Support for routing is available 7:00am to 5:30pm CST Monday through Friday at 866-810-2836 Information accuracy is critical to efficient routing. The information you enter into the SMART routing system is expected to be accurate. The actual weight and/or cube can not vary by more than 10% from the entered weight or cube otherwise a chargeback will be assessed. It is mandatory for you to accurately enter all collect domestic shipments over 150 lbs. into our Mervyns SMART website. Failure to do so may result in a charge back. Routing Instructions for Assigned Carriers Once your entry is made, Mervyns Transportation Department will determine the best routing for your PO. Routing optimization starts at 11:00 am CST and is usually done by 3:00 pm CST two business days before the latest pickup date that you entered. To receive your routed carrier you need to go back into the system to the tracking screen and view your carrier assignment. It is the vendor s responsibility to ensure that pick up arrangements have been made using the assigned carrier from the Routing System. See grid below for general instructions Shipping Mode Carrier Contact Truckload Carriers Will generally contact the shipper to make appointments Consolidators Will make pick up on requested pick up date. Any exceptions or requests for specific appointment times need to be arranged by the shipper LTL Carriers Shipper contacts carrier for pick up time and date Expedite-Air Will contact the shipper for appointment JBHunt Interstate Hub Group Werner Schneider Knight Pacer Consolidated Garments SECO NART 800-723-3185 800-925-8013 800-209-2869 866-810-2836 800-558-6767 ext 7512 602-606-6382 614-923-1732 626-333-2244 Local pick up carrier 201-330-1900 ext 3824 Roadway http://www.roadway.com or 800-538-1450 Eagle 510-475-1553 4

New Vendors If you are a new vendor to the SMART Vendor Order Entry screens, Werner VAS will provide you a login and password. Please contact Mervyns Routing Team at 866-810-2836 or mervyns@wernervas.com for login and password information. The website is available for viewing and for accessing training materials at any time after you receive your login information, so don t wait until the last moment to ensure that you will be able request routing for Mervyns orders. Ship Windows Entry into the SMART routing entry system can be made up to 14 days in advance of the begin ship date. However, the system will not allow for a pick up date that is earlier than the begin ship date of the purchase order. Shipments other than Ship To Mark For originating in Southern California will be routed for Monday, Tuesday or Wednesday pick up only. Due to transportation resources demands and traffic patterns in Southern CA. no Thursday or Friday pick ups will be allowed to be entered into the routing system. Plan your shipments accordingly in order to avoid shipping late. Request for routing process requires you to post all shipments over 150 pounds at least 48 hours prior to pickup. (By 11:00am CST two business days prior to pick up) The system will not allow for a pick up date that is after the latest ship date. Any entry into SMART past the latest ship date requires approval from the buyer. When shipping multiple Mervyns purchase orders from the same origin point only one combined shipment is permitted within a given week wherever purchase order ship windows are overlapping. The safest way to avoid chargebacks for multiple shipments from same origin to same destination with overlapping ship windows is to ship only once a week from any origin point. Less Than Truckload (LTL) shipments/pos should not be shipped more than once. Multiple LTL shipments against the same PO will result in a chargeback. Vendors are expected to make shipments available to assigned carriers during normal business hours (8:00am to 5:00pm) Monday through Friday. Failed attempts at pick up during these hours due to vendor facility closed could result in a Truck Ordered Not Used or a late ship chargeback. 5

BOL INSTRUCTIONS Mervyns requires the use of the standards and format published by VICS, which can be viewed at http://www.vics.org/standards/bol/ Bill of Lading (BOL) instructions also apply to prepaid shipments. All non-parcel shipments must have the following information on the Bill of Lading. Manifest and packing lists are not acceptable as a Bill of Lading. 1. Complete a separate Bill of Lading for each destination. 2. The Bill of Lading must have the full ship to address with the DC location number. 3. Vendors are to combine on one Bill of Lading all Purchase Orders leaving on the same day for the same Distribution Center. 4. Bill of Lading Number Bill of Lading Number must be unique per shipment representing one origin/ destination combination. Do not put more than one ship-to destination per Bill of Lading and do not combine the shipments of multiple customers on one Bill of Lading. If a purchase order requires more room (weight or cube) than a single trailer can hold, each trailer represents a unique shipment and must have a unique BOL number. The Bill of Lading Number must equal what is transmitted on the EDI 856 Ship Notice/ Manifest. If a master Bill of Lading is used with underlying Bills of Lading attached, be sure to transmit the Master Bill of Lading Number on your 856 (ASN) Ship Notice/ Manifest. Mervyns strongly recommends migration to the use of the standard UCC 17-digit Bill of Lading Number format and bar code. 5. Release Purchase Orders (example: 0123456789) must be listed only once on the Bill of Lading, showing the number of cartons and weight for each release Purchase Order. (Do not preface PO number with department number). 6. The routing system (SMART) load ID must be noted in the special instructions field of the BOL 7. The Bill of Lading must show total carton count and total weight of the shipment. For Palletized Shipments: The Bill of Lading must show a separate line on the Bill of Lading with the product weight plus a separate line for the weight of the pallet(s) and then a total lading weight which is the sum of the product and pallet weight. 8. Additional Bill of Lading requirements when the shipment is routed through a consolidators (e.g. SOCS, NART, & COGM): A Master Bill of Lading consigned to the consolidator is required in addition to an individual sub Bill of Lading per final Distribution Center destination point. Attach all Bills of Lading together with the Master Bill of Lading on top. The ship to portion of the Master Bill of Lading must state Mervyns c/o (Consolidator s name) and the address portion must reflect the consolidator s full address. 9. When shipping air, as required for all other Bills Of Lading, Purchase Orders must be listed on the air bill document. 10. Note that it is the vendor s responsibility to ensure that the Purchase Orders listed are valid Mervyns purchase orders and that all information on the Bill of Lading is legible. For questions or concerns regarding any of the above, please call the following number: 510-727-3075 6

Loading of Shipments and Use of Pallets It is the vendor s responsibility to tender their freight to Mervyns carriers with PO integrity. When product arrives at consolidation points and Mervyns DCs it must be unloaded and counted by PO. All truckload carrier and multi stop truckload shipments must be floor stacked. Mervyns prefers that all truckload carrier shipments be tendered as Shipper Load and Count SLC. Any driver delays or accessorial charges related to driver count of freight will be subject to chargeback. Pallets are not to be utilized for Truckload carrier shipments. Truckload carrier shipments moving on pallets without authorization from Mervyns Transportation will be subject to chargeback. Mervyns does not regulate the use of pallets for LTL carrier shipments. However, for Palletized LTL Carrier Shipments the Bill of Lading must show a separate line on the Bill of Lading with the product weight plus a separate line for the pallet weight and then a total lading weight which is the sum of the product and pallet weight. If Mervyns is billed by the carrier for pallet weight because the bill of lading did not show separate lines for product weight and pallet weight, there will be a charge back to the vendor. All trailers for truckload carrier and multi-stop truck loads must be sealed by the vendor and notation of the seal indicated on the BOL. Any and all charges for accessorial services performed at the vendor s facility at the vendor s request and on the vendor s behalf are the responsibility of the vendor. This includes loading, sorting, counting cartons, excessive wait time (2 hours for truckload, 1 hour for LTL), truck ordered not used etc. We have instructed our carriers to bill any vendor requesting loading assistance per the applicable tariff items and rates. If you have any questions regarding this policy, please address your e-mail to transportation@mervyns.com. Because of the difficulty of verifying the actual piece count on stretch-wrapped pallets or slipsheets, vendors shipping on stretch-wrapped pallets or slipsheets must permit drivers to sign for a specific number of pallets or slipsheets rather than a specific number of cartons. The driver will be deemed to have signed for a specific number of pallets or slipsheets, rather than a specific number of cartons, if the driver clearly indicates on the bill of lading at the point of origin that the freight is unitized and specifies the number of pallets or slipsheets loaded. Any of following notations (or some variation on one of them) would satisfy this requirement: X stretch-wrapped pallets, or X shrink-wrapped pallets, or X pallets said to contain Y cartons (STC), or X pallets, or X slipsheets, or X skids, or Shipper Load and Count (SLC) If the driver notes on the bill of lading at the point of origin that the freight is unitized and specifies the number of pallets or slipsheets loaded, then the vendor will be responsible for the actual piece count noted on the bill of lading, unless the condition of the stretch-wrap has been violated and is so noted on the receipt at the point of destination. Mervyns prefers that all truckload shipments be tendered as Shipper Load and Count SLC. Overflow Shipments There may be times when all of your shipment will not fit on the trailer and you will have to ship the overflow via LTL or consolidation method. Please follow the instructions below if you meet one of below 3 situations: Multiple PO shipment When you have a shipment made up of multiple POs and not enough space is available to fit all POs on the trailer/container, do not split a PO. You will need to make sure that full POs are loaded into the trailer/container. Then, contact Werner/Mervyns transportation at (866) 810-2836. They will ensure that a new routing is created and that on-time ship status is maintained in the system for the overflow. Single PO When you have a single po that is unable to fit into the trailer/container, you must contact Werner/Mervyns transportation at (866) 810-2836 immediately for assistance. 7

Unable to fit (before you start loading) When you determine there is not enough space after you open the trailer/container (before you start loading), you must contact Werner/Mervyns transportation at (866) 810-2836 immediately for assistance. When this happens your company will not be charged back for late shipment providing: You contact Werner to enable entry into the routing system for the remaining product. You also need to indicate Overflow along with the authorization number or the dispatch number from the original load in note section of Mervyns Smart Order Entry System. You will however be subject to charge backs if: You do not load per our instructions. You give inaccurate cube information into the SMART system or to our carriers. 8

Prepaid Carrier Selection Vendors who are responsible for paying the freight costs of shipments to Mervyns should use a carrier approved by Mervyns. If your company prepays freight charges, we strongly encourage you to use our recommended carriers as any failures by your chosen carrier to perform to Mervyns standards could result in a chargeback to your company. All truckload shipments require the trailer to be dropped for unloading at Mervyns DCs. Mervyns DC s do not accept live unload appointments for truckload shipments. Any charges for trailer and/ or tractor detention for carriers chosen by vendor will be the vendor s responsibility. Pre-Paid Vendors Only! Mervyns Approved Prepaid Carriers: LTL Carriers CARRIER SCAC 0996 ODC 997 NDC Roadway RDWY XX XX Estes Freight Lines ESTE XX XX Pre-Paid Vendors Only! Mervyns Approved Prepaid Carriers: Air/Expedite Carriers CARRIER SCAC 0996 ODC 997 NDC Eagle EASU XX XX Pilot PAAF XX XX Pre-Paid Vendors Only! Mervyns Approved Prepaid Carriers: Truckload Carriers CARRIER SCAC 0996 ODC 997 NDC J.B. Hunt HJBT XX XX Schneider National SCNN XX XX Hub Group HBGI XX XX Ryder RYDD XX *Werner Enterprises WENP XX XX *This carrier can also provide protective and refrigerated service. 9

Prepaid Vendors Only! Mervyns Approved Carriers: Truckload/Air Carriers (Contact Information) SCAC Carrier Name Operational Contact WENP *Werner Enterprises Phone Number Marketing Contact Kara Stieneke 866-810-2836 Ron Devries HJBT J.B. Hunt Johanna Robinson 800-229-8635 PAXR Consolidator Garments - PAX Jason Bohannon Phone Number 800-228-2240 ext 4091 479-820-7120 Cindy Bribiesca 626-333-2244 Gary D. Brown 626-333-4444 EASU Eagle Air Jocelyn Tan 510-475-1552 Chris Goodsell 510-910-1285 PAAF Pilot Air Rey Luarca 888-664-7450 Byron Wilson 801-977-8585 *This carriers can also provide protective and refrigerated service. 10

Air Freight Procedures At times Mervyns needs to expedite goods to our Distribution Centers via air, team driver or other expedited means. Mervyns has specific routing instructions that must be followed when shipping via air/expedite. Procedures for shipping product via air/expedite are as follows: Mervyns Buying Department and Mervyns Transportation Department must make the decision whether to ship via air on collect shipments. Vendors MUST obtain an air authorization number from Werner VAS prior to shipping via air. Mervyns Transportation Department/Werner VAS will determine the air carrier to be used if Mervyns is responsible for any portion of the freight expense. You will need to know the following information when shipping via air: o Air Authorization Number o Air Carrier Assigned By Mervyns Purchase Order Numbers (Example: 0123456789) o Number Of Cartons o Weight/Cube o Carton Dimensions o Total # Of Cartons Per Ship To Location Please indicate on the air bill the exact dimensions and weight of all cartons involved in the shipment. You must also show the air authorization number on the air bill. Note for Pre-Paid Shippers: In instances where the vendor is responsible for paying the cost of airfreight, the vendor is encouraged to use Mervyns s corporate contract carrier, Eagle Global Logistics, for store and Distribution Center shipments. You will receive the benefit of Mervyns s corporate contract rates if an air authorization number is obtained prior to pick up. If you have any other questions concerning air shipments, please call Mervyns Transportation Expediting Desk at 866-810-2836 AIRBILL INSTRUCTIONS Prepare an individual air bill for each destination, describing the merchandise accurately, and consign the shipment to Mervyns DCs (or the appropriate destination). The following information MUST be provided on the air bill: Mervyns air authorization number. Purchase Order number (Example: 0123456789). Actual dimensions of carton size shipped (length x width x height), per style, to nearest fraction of an inch. Total number of cartons for each carton size and weight. Destination Accessorial Charges If you select a carrier that is not on Mervyns approved list, any and all destination accessorial charges including, but not limited to, detention and sort/segregate, beyond charges will be your responsibility. Any bills we receive for destination accessorial will be returned to the carrier with instructions to bill the shipper or a charge back will be assessed. The prepaid carriers, listed above are currently transmitting the EDI 214 document which is imperative for the Receipt Scanning System at the Mervyns DCs. If you choose to use your own carrier, they must have a legal SCAC (Standard Carrier Alpha Code) 11

FedEx Ground Procedures All Collect Small Package shipments to Mervyns should be made using the FedEx Ground Collect billing program, including shipments from Canada. Before attempting to use the FedEx Ground Collect billing program, you must first have your own FedEx Ground account. If you do not have an account set up with FedEx Ground, follow one of the procedures detailed below. If you already have a FedEx Ground account and have collect barcodes, you will use those barcodes to ship to Mervyns. If you have an account but do not have collect barcodes; call FedEx at 1-800-GOFEDEX (463-3339) to arrange to have collect barcodes sent to you. You will need to talk to FedEx customer service to ask for FedEx Ground Collect barcodes after you select Shipping Supply and Preprinted Air Waybill options. Note: You will not at any time need to receive, or enter a Mervyns account number to ship FedEx Ground Collect. This is not a 3rd party billing arrangement. FedEx Ground Collect is a contractual service that allows transportation charges to be billed directly to Mervyns. All additional charges (e.g. declared value, weekly service charge, etc.) will be billed to the shipper. Procedures to get set up on the FedEx Ground Collect program If you are a new collect Mervyns vendor and need to be set up on the FedEx Ground Collect program, you have two options: 1. If you are electronically linked to one of FedEx s shipping systems (e.g. Quickship, Powership CAFE, FedEx compatible vendor systems, etc.) you can complete the setup process immediately by defaulting your billing option to Collect Ground on Mervyns collect shipments. 2. If you are not electronically linked to FedEx, contact FedEx at 1-800-231-9219 for complete instructions. At that time, the necessary supplies will be ordered for shipping Ground Collect. All supplies should arrive within 3-4 working days. Please plan accordingly based on when you need to ship your product. Procedures for shipping FedEx Ground Collect Using FedEx Electronic systems: You can process FedEx Ground Collect shipments the same way as you process your other FedEx shipments. Ensure that the billing option has been changed to Collect Ground on Mervyns s collect shipments. If you use an electronic system, the 10 digit Purchase Order Number must be input in reference field #1. These Purchase Order numbers will also appear on the address label and assist Mervyns in the receiving process. Using FedEx Ground Pick-Up Record Book: Enter your company name, address, date, and your FedEx Ground account number. Affix the FedEx Ground Collect tracking label receipt to the FedEx copy and your copy of the pickup record page. Additional instructions can be found on the FedEx Ground Delivers shipping poster. FedEx Ground CONSIGNEE BILLING PROOF OF DELIVERY/CLAIMS ETC. Since shipments sent Fed Ex Ground are not tendered on Bills of Lading or Freight Bills and all the data relevant to a Shipment is maintained by the Shipper's account number, the vendor will be responsible for proof of Shipment, proof of delivery and filing loss and damage claims on Fed Ex Ground shipments from the vendor to Mervyns. These responsibilities apply regardless of the freight payment terms (Prepaid, prepaid and add, third party or collect) or the terms of sale. 12

Routing Instructions for Fine Jewelry Departments Department # s: 989, 991, and 992 Federal Express: All shipments should be shipped via two day Federal Express. Do not pack more than $20,000 at cost in a single carton. Utilize Federal Express packaging whenever possible. Freight terms for all fine Jewelry shipments are FOB Destination, Freight Collect. Any insurance fees added to shipments destined for Mervyns Distribution Center will be assessed back to the vendor through a remittance deduction. All packages should be routed to: Mervyns #991 Northern California Distribution Center (NDC) #991 48200 Fremont Blvd. Fremont, CA 94538-6509 (510) 623-0300 This set of routing instructions supersedes any routing instructions on the Mervyns purchase order that conflicts with the above instructions. The use of UPS, Brinks or registered mail will be considered to be a violation of our routing instructions. It is the responsibility of the vendor to ship within the ship/cancel window. Failure to follow these instructions will result in a chargeback to your firm. Routing Instructions for Watches and Bridge Jewelry Department # s: 990 (watches), 948 (Bridge Jewelry) All shipments must be entered into our online routing system (Mervyns SMART Vendor Order Entry System (SMART)) except for shipments direct to DC less than 150 lbs. or less or shipments of combined weight of 150 lbs for both DCs within a consolidation zone. Shipments that fall beneath the 150 lb threshold should be routed via Fed-Ex Ground. (See instructions on page 10). These shipments do not need to be entered into the SMART Routing System. Freight terms for all watch and bridge jewelry shipments are FOB Destination, Freight Collect. Any insurance fees added to shipments destined for Mervyns Distribution Centers will be assessed back to the vendor through a remittance deduction. If you have any questions or need clarification, please feel free to contact us at 510-727-3558. 13

Fine Jewelry, Costume Jewelry and Watch Vendors Packaging Instructions All Fine Jewelry, Costume Jewelry and watch shipments coming into the Fine Jewelry Distribution Center should be consolidated at the PO level into the fewest number of shipping containers wherever possible. Bulk Orders- The merchandise should be poly-bagged with one SKU per poly-bag stapled at the end with unique shipping label and then placed in a master carton. Ship To Mark For- All STMF shipments should be poly-bagged by store and stapled at the end with its unique UCC128 label on each poly-bag. See below on two individual poly-bagged STMF. Assortment Prepack- All assortment orders should be poly-bagged and stapled at the end by assortment with its unique UCC128 label on each poly-bag. Note- Master Cartons should not exceed $20,000 cost in a single carton or 40 pounds in weight. If you have any questions or need clarification, please call us at 510-727-3556 14

Vendor Responsibility Shipping Hazardous Materials to Mervyns Mervyns expects that all of its vendors will be in compliance with the Federal Government s Department of Transportation (DoT) 49 CFR, Subchapter C regulations governing the shipment of hazardous materials. These regulations include properly classifying, packaging, marking, and labeling all hazardous materials being shipped. It also includes preparing proper shipping papers and trailer placarding for all hazardous materials being shipped to a Mervyns Distribution Center or other designated facility. Additionally, the vendor must provide training for any vendor employee shipping hazardous materials in compliance with 49 CFR, Part 172, Subpart H. Mervyns relies on its vendors to properly package, mark, and label any hazardous material, including ORM-D, as it re-ships the product in the original carton from our DC s to stores. Material Safety Data Sheets are required Mervyns requires all vendors to supply an OSHA compliant Material Safety Data Sheet (MSDS) to Mervyns Buyers, Safety Department, and Environmental Department, for approval before the new item(s) are accepted and setup for purchase. This must be done before purchase orders for these new items can be initiated and must include reference to Mervyns s SKU number and your UPC for the item. Further, a copy of the MSDS must accompany the first shipment of the material to a new Mervyn s location such as a Distribution Center. Mervyns requires the MSDS s for the safety of our guests, associates, and for transportation classification. Once approved and recorded, the MSDS sheets are made available by our Hazardous Materials consultant to Mervyn s employees through our MSDS distribution system. Following these procedures will help ensure that your return shipments are processed in a timely manner. 15

Transportation Violations Mervyns continues to focus on leading edge supply chain management. This strategy drives our corporate commitment to have the right product, in the right store, and at the right time for our customer. As you know, part of Mervyns Distribution Services Strategy is to continue to improve service to our stores and ultimately to our customers. It is our intention to flow your merchandise through our Distribution Centers and to our customers in the most cost efficient and timely manner possible. A comprehensive list of the chargebacks for transportation violations and the charge back amount is listed on the next page for your reference. Deductions and credits for transportation issues will usually be identified with a document listing the alpha characters TR plus violation number. Mervyns will review contested transportation chargebacks if submitted within six months of the check deduction date. We appreciate your cooperation in adhering to this policy. It is important that you work with your Buyers to ensure that Mervyns has the correct order points tied to the correct shipping location, as well as FOB and freight terms. Should you have any questions regarding the above policies, please direct them to Bob Zukoski, Group Manager of Domestic Transportation at (510) 727-3075, or Bob.Zukoski@mervyns.com. Questions regarding TR chargeback disputes should be directed via e-mail to Pam.Woody@mervyns.com. Vendor Correspondence: All Transportation Chargeback inquiries should be made in writing by e-mail and include the following information: Mervyns chargeback number Detailed explanation of the issue Contact information including return e-mail and phone number Vendor disputes must be made within 180 days of the initial chargeback deduction date. A fee of $30.00 will be charged for all disputes that are researched and denied. Note: For questions regarding deductions and credits for packing, marking, floor ready, ASN, UPC, fill rate and on-time ship contact Vendor Technology 510-727-2000 16

Violation Table: Reason Code Name of Audit Description Chargeback Amount *TR01 Order Point Actual ship origin different that PO ship origin point Full Freight *TR02 Unauthorized Ground Carrier Used unauthorized carrier (other than assigned by SMART) or failure to use SMART for routing. Full Freight Billed weight or actual cube for *TR03 in SMART. Online Routing System information shipments over 1000 lbs. is more Accuracy than 10% variant from vendor entry Full Freight *TR04 *TR05 *TR06 *TR07 *TR08 *TR09 TR10 TR11 *TR12 *TR13 *TR14 Prepaid and Prepaid Advance Freight Terms for Consolidation Shipments Use of pallets Shipment consolidation from origin point. Multiple Bills of Lading Back Order Accessorial Charges Consolidation Freight Allowance Authorized Air Allowance Single ASN for multi trailer/bol shipment Load Quality/Disruption of Multi stop load Truck Load Live unload for Prepaid shipment to a Mervyns DC PO terms are prepaid but shipment is collect to Mervyns Unauthorized use of pallets on truckload shipment Failure to combine LTL shipments with same origin and destination that ship within the same week, where PO ship windows are overlapping Failure to combine multiple LTL shipments for the same location shipped on same day or failure to use Master BOL for shipments that are moving to consolidation point Failure to obtain approval for multiple shipments of a Purchase Order for the same location. Origin accessorial charges billed to Mervyns, i.e.: driver wait time, equipment detention truck ordered not used, driver load, use of PAX Vendor paid freight allowance for goods picked up by NE consolidator. Vendor pays negotiated air freight or expedite charges. Failure to create a unique ASN per BOL Disruption of multi stop load for any reason. Examples include Failure to load multi stop PO in alignment with cube dimensions entered into SMART; loading wrong DC onto multi stop trailer, excessive wait time Any prepaid shipment requiring a live unload at a Mervyns DC will be subject to this chargeback Full Freight $50 per pallet (effective 3/04/07) Full Freight (effective 3/04/07) Full Freight Full Freight on subsequent shipments Accessorial Charges $1.45 per carton Per agreement $250 per shipment (effective 3/04/07) Full Freight (effective 3/04/07) $250 per DC (effective 3/04/07) * Effective 3/04/07 a processing fee of $50 may be added to these Transportation Violations at Mervyns sole discretion. 17

Who to Call Problem Questions regarding Domestic Transportation policies and practices Who to Call Mervyns Transportation Mgr 510-727-3075 Questions about collect LTL and full Truckload shipments, direct to store shipments, and collect carrier pickups and loading Werner VAS routing specialist-866-810-2836 Questions regarding air/expedite shipments Werner VAS routing specialist-866-810-2836 Mervyns Smart Vendor Order Entry System questions/problems with entry Mervyns Transportation 866-810-2836 Transportation Chargebacks (TR s) for routing violations/penalties Mail Correspondence to: Mervyns LLC- Attn: Pam Woody 22301 Foothill Blvd MS 3160 Hayward, CA 94541 Or Email to: Pam.Woody@mervyns.com Deductions and credits for packing, marking, ASN, fill rate, on-time ship and UPC issues Vendor Technology Helpdesk (510) 727-2000 Carton Marking and labeling requirements See the Domestic Carton Markings chapter under DISTRIBUTION/EDI Transportation- Domestic Carton Markings or Domestic labeling requirements Invoicing questions Accounts Payable Helpline (510) 727-2000 18