To reset an iPad to its factory defaults: 

1.Tap the Settings icon and then tap General. Tap Reset.

2. Tap Erase All Contents and Settings.

3.Tap Erase Now.

4.Enter your iPad's passcode to confirm you have the privileges to do this.

Note - Erase All Content and Settings. This erases everything, making the iPad "factory fresh," as depicted in the steps above.