Wet Seal (FRA:WS2A) Fees and Other Income

Wet Seal Inc was incorporated in the State of Delaware in 1990. The Company is a national multi-channel specialty retailer selling fashion apparel and accessory items designed for female customers aged 13 to 34 years old through its stores and e-commerce websites. It operates two nationwide, primarily mall-based, chains of retail stores under the names Wet Seal and Arden B. As of February 1, 2014, the Company had 532 retail stores in 47 states and Puerto Rico. Of the 532 stores, there were 475 Wet Seal stores and 57 Arden B stores. The names Wet Seal and Arden B are trademarks and service marks of the Company. Wet Seal is a junior apparel brand for girls who seek fashion apparel and accessories at affordable prices, with a target customer age range of 13 to 23 years old. Wet Seal provides its customers with a balance of trend right and fashion basic apparel and accessories that are budget-friendly. Arden B is a fashion brand at affordable prices for the contemporary woman. Arden B targets customers aged 24 to 34 years old and delivers differentiated contemporary fashion, dresses, sportswear separates and accessories for many occasions of the customers' lifestyles. Wet Seal stores average approximately 4,000 square feet in size. As of February 1, 2014, the Company operated approximately 475 Wet Seal stores. Arden B stores average approximately 3,100 square feet in size. As of February 1, 2014, it operated 57 Arden B stores. The Company purchases its merchandise from domestic vendors, comprised of domestic importers who source merchandise from factories in foreign countries. It owns a number of trademarks including, but not limited to, B. REWARDED, BLINK by WET SEAL, BLUE ASPHALT, BUTTERFLY DESIGN, CHIC BOUTIQUE, CONTEMPO CASUALS, ENR EVOLUTION NOT REVOLUTION, FASHION INSIDER, FASHION RIGHT.ALL DAY ALL NIGHT., FIT IN. STAND OUT., iRUNWAY, LOVE THE TREND-HATE TO SPEND, LIFE'S A BLUR.FOCUS ON FASHION, ROCK THESE BLUES and URBAN VIBE. The Company competes with specialty apparel retailers, department stores and other apparel retailers including Abercrombie & Fitch, Aeropostale, American Eagle, Anthropologie, Banana Republic, BCBG, bebe, Body Central, Charlotte Russe, Express, Forever 21, Gap, Guess, H&M, Nordstrom, Old Navy, Pacific Sunwear, rue21, Target, Urban Outfitters, Zara, and other regional retailers. The Company is subject to federal, state, and local laws affecting its business, including those relating to advertising, consumer protection, privacy, health care, tax, environmental and zoning and occupancy.