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FIRE SAFETY INSPECTION REPORT MAGPIE COMPOSITE TEXTILE LTD. 832/833, DEWAN IDRIS ROAD, AMTOLI, ASHULIA, SAVAR, DHAKA OTHER FACTORIES: NONE May 17, 2014

Page 2 SUMMARY was surveyed for fire safety on 5/17/2014 by Hughes Associates, Inc. This summary identifies the major deficiencies that were identified during the inspection. The purpose of this survey was to identify significant fire safety issues and to provide recommendations for remediation based on applicable standards specified by the Accord. The scope of this initial fire safety inspection was limited to the review and identification of major fire safety issues. The inspection did not include identification of minor deficiencies, which will be further addressed as part of follow-up inspections. Table 1 summarizes the major fire safety issues identified during the inspection. Recommendations have been provided to address each issue. An implementation schedule shall be developed by the factory to remediate each of the findings. The specific timing of improvements, including any requested extensions due to design / installation constraints, shall be submitted to the Accord for approval.

Page 3 Table 1. Findings And Recommendations No. Category Finding Recommendation Remediation Timeframe F-1 Fire Rated Construction The boiler and generator room is not separated by fire-rated construction (openings, non-rated doors, penetrations). Separate the boiler and generator room by a minimum 2-hr fire-rated construction. Seal and/or protected all openings to maintain the required fire separations Main Boilers on ground floor are not separated from a path of egress. The mini boiler is open to the factory on floors on the 1st and 4th floors. The Generator is not separated from a path of egress and the dyeing and finishing area.

Page 4 F-2 Fire Rated Construction Areas used for combustible storage are not separated by firerated construction. Location: All Floors Provide dedicated storage rooms separated by minimum 1-hr fire-rated construction. Where separate storage rooms are not feasible, provide defined storage areas and limit the storage arrangement as follows: - Maximum height of 2.4m and maximum area of 23m2 - If sprinkler protected: maximum height of 3.66m and maximum area of 93m2 Separate areas of unenclosed combustible storage by a minimum clear distance of 3m.

Page 5

Page 6 F-3 Fire Rated Construction The exit stairs are not separated from work areas and other spaces on each floor by firerated construction. Provide minimum 1.5-hr fire rated doors and seal all unprotected openings to separate the exit stairs from work areas and other building spaces on all floor levels. Ensure that the fire doors are self-closing and positive latching and that they are provided with fire exit (panic) hardware where serving production floors. If fire doors are required to be held open for functional reasons, provide automaticclosing devices tied to the fire alarm system. F-4 Fire Rated Construction Unsealed penetrations and openings are located in the fire-rated floor/ceiling assemblies. Provide a minimum 2-hr firerated shaft to separate the utility risers from each floor level.

Page 7 F-5 Fire Rated Construction Unsealed penetrations and openings are located in exit stair enclosures. Seal all penetrations and openings in exit stair enclosure walls to maintain the fire separation.

Page 8 F-6 Fire Rated Construction Mini offices are located inside the north stairwell landings. Remove mini offices from stairwell -OR- Provide minimum 1.5-hr fire rated doors and seal all unprotected openings to separate the exit stairs from mini offices on all floor levels. Ensure that the fire doors are self-closing and positive latching and that they are provided with fire exit (panic) hardware. F-7 doors / gates with locking features are provided at building exits, exit stairs, along egress routes, and exit discharge. All gates/doors were open and unlocked during the inspection. Remove locking features from all egress doors / gates. If locks are required for security reasons, utilize special door locking features complying with NFPA 101. Immediate

Page 9 F-8 Storage was located in the egress path on the 5th floor. Keep egress paths and stairs clear of storage. Immediate Storage was also located in the exit discharge on the south side of the building in between the main building and shed 1. F-9 Storage was located in the all exit stairs. Remove all storage from exit stairs and egress paths. Immediate It was located on the landings and the base of the stairs.

Page 10 F-10 Collapsible gates / sliding doors are provided at building exits, exit stairs, and exit discharge. Replace all gates / sliding doors along the means of egress with side-hinged, swinging egress doors. If locks are required for security reasons, utilize special door locking features complying with NFPA 101. Within 1 month

Page 11 F-11 The width of egress aisles is less than 36-in. Provide minimum aisle widths of 36-in. Locations: 2nd floor 5th floor F-12 The South exit stairs discharges inside the building. Provide 2-hr fire-rated exit passageway leading direclty outside (vestibules to separate any storage areas). Within 6

Page 12 F-13 Fire Protection The fire alarm system is antiquated, not a listed system, and does not provide alarm and notification features consistent with acceptable standards. Replace the fire alarm system with a new, listed addressable fire alarm system in accordance with NFPA 72. Design within 4, install within 9 F-14 Fire Protection Inspection, testing, and maintenance for the fire alarm system was not in accordance with NFPA 72. Inspect, test and maintain the fire alarm system, and keep written records on-site, in accordance with NFPA 72.

Page 13 F-15 Fire Protection The building is equipped with single-station smoke alarms. Smoke alarm activation sounds only a local alarm and does not provide automatic fire alarm notification of occupants. Replace the single-station smoke alarms. Provide automatic smoke detection throughout the building in accordance with NFPA 72. Within 6 F-16 Lighting Exit signage not illuminated (burned out, broken, etc.). Location: On multiple floors Regularly inspect all exit signage and replace/install lights as needed to illuminate signs. Within 1 month

Page 14 F-17 Lighting Inspection, testing, and maintenance records for the emergency lighting system were not available. Inspect, test and maintain the emergency lighting system in accordance with The ACCORD standard. Keep written records on-site. F-18 Lighting Based on the number and location of emergency lights observed, adequate illumination levels are not anticipated along egress routes. Location: All floors Test the emergency lighting system on each floor and provide additional emergency fixtures to provide adequate illumination along the means of egress. Provide a minimum illumination of 10 lux at the floor level within exit stairs and exit discharge paths and minimum 2.5 lux along exit access aisles.