LI & FUNG (TRADING) LTD. Li Fung Tower, 888 Cheung Sha Wan Road, Kowloon, Hong Kong Tel: (852) 2300 2300 Fax: (852) 2300 2000

www.lifung.com

Supplier Name: _______________________________________________________ Supplier Registered Address: _______________________________________________________

_______________________________________________________

_______________________________________________________

_______________________________________________________

Date: __________

Dear Sirs,

Warranty of compliance with terms of the Supplier Code of Conduct

In conducting commercial activities on behalf of their customers, Li & Fung (Trading) Ltd and all of its affiliates and subsidiaries

(together, “Li & Fung”) rely on responsible sourcing from Suppliers around the world. Li & Fung works with its global supply chain to cultivate safe working conditions, to foster dignity and respect for workers and to promote responsible environmental practices.

The enclosed Supplier Code of Conduct and accompanying Standards detail the principles and practices that Li & Fung expects its Suppliers and their approved factories, manufacturing facilities, suppliers and other business partners (each a

“Subcontractor”) to uphold. The Supplier Code of Conduct, which is based on universally accepted fundamental principles and local laws, represents Li & Fung’s commitment to source goods only from Suppliers who value and incorporate these provisions into their operations.

In this regard Li & Fung requires all of its Suppliers to warrant to Li & Fung that they and their Subcontractors shall operate in full compliance at all times with the Supplier Code of Conduct as a condition of entering into any purchase order, contract or

other agreement with Li & Fung. Accordingly, by signing this letter, Supplier agrees and warrants that:

1. Supplier and the Subcontractor have each received, read and understood this letter and the attached Supplier Code

of Conduct;

2. Supplier and the Subcontractor shall abide by the terms of the Supplier Code of Conduct at all times in respect of the

production, manufacture and/or supply of any and all products to Li & Fung;

3. should the Supplier or the Subcontractor be unable to comply with the Code of Conduct, the Supplier shall

immediately notify Li & Fung and that a corrective action plan shall be promptly adopted and implemented in order to actively progress towards compliance; and

4. should the Supplier or the Subcontractor fail to fully implement a corrective action plan, Li & Fung shall be entitled to terminate its relationship with Supplier without liability.

Yours faithfully,

Supplier Director Signature: _______________________________________________________

Supplier Director Name: _______________________________________________________

Supplier Director Position:

_______________________________________________________ For and on behalf of

Supplier Name:

_______________________________________________________ Subcontractor Name: _______________________________________________________

Subcontractor Address: _______________________________________________________

_______________________________________________________

_______________________________________________________

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encl.

SUPPLIER CODE OF CONDUCT Li & Fung (Trading) Ltd.’s (Li & Fung) activities, on behalf of its customers, rely on sourcing from Suppliers around the world. We work with our global supply chain to cultivate safe working conditions, to foster dignity and respect for workers and to promote responsible environmental practices.

Our Supplier Code of Conduct and accompanying Standards detail the principles and practices that we expect our Suppliers to uphold. The Code, which is based on local, national laws/ regulations, the International Labor Organization’s (ILO) core conventions, and internationally recognized occupational health, safety, and environmental standards, represents our commitment to source goods from Suppliers who value and incorporate these provisions into their operations.

Although Suppliers’ employees in different departments have varied natures of work, the Supplier Code of Conduct is applicable to all worksites utilized for Li & Fung sourcing and associated onsite residential facilities.

MANAGEMENT SYSTEMS

Supplier management establishes policies and systems to manage risk and grievances.

HEALTH AND SAFETY PRACTICES

Licenses, permits and certifications are accurate, complete, and up-to-date, as required by law. All notices meet or exceed legal regulations.

Suitable personnel are responsible for emergency response and health and safety.

Supplier applies and maintains emergency and safety precautions that meet or exceed legal requirements.

Suppliers provide first aid and medical care that meets or exceeds legal requirements.

Suppliers report, investigate and address employee and facility accidents in a manner that meets or exceeds legal requirements.

Personal protective equipment policies, training, provision, maintenance, and use meet or exceed legal requirements.

Confined spaces and aboveground and underground storage (AST & UST) policies and training is provided.

Chemicals and hazardous materials management, policies, training, maintenance, storage, and use meet or exceed legal requirements.

Smoking and activities that involve open flame, fire or ignition are prohibited in designated areas.

Equipment safety management, policies, training, and maintenance meet or exceed legal requirements.

Electrical components and systems are properly maintained.

Noise levels are controlled to meet legal requirements.

Suppliers maintain a work place that is lit, ventilated and temperature controlled in a manner that meets or exceeds legal requirements.

Suppliers maintain a clean work environment and provide potable water, restrooms, and showers in a manner that meets or exceeds legal requirements.

Food preparation areas and child care facilities meet or exceed legal requirements.

Building and construction permits are maintained and accurate.

Suppliers implement ergonomics risk programs and provide training for ergonomics awareness.

Dormitory conditions and emergency and safety precautions meet or exceed legal requirements.

LABOR PRACTICES

Business licenses are accurate, valid, and up-to-date, as required by law. All postings meet or exceed legal requirements.

All hiring and termination practices meet or exceed legal requirements. Suppliers impose strict recruitment practices to mitigate the risk of trafficking in persons.

Employee compensation and payroll record keeping meet or exceed legal requirements.

Employee benefits meet legal requirements.

Employee working hours and time record keeping meet or exceed legal requirements.

Forced, bonded, indentured, slave and prison labor are prohibited.

Employment of juveniles no younger than 15 years of age, apprentices and trainees meets or exceeds legal requirements.

Abuse, coercion, harassment and inappropriate disciplinary actions are prohibited.

Discriminatory practices are prohibited.

The rights to freedom of association and collective bargaining must be respected.

ENVIRONMENTAL PRACTICES

Environmental management, policies, and postings meet or exceed legal requirements.

Suppliers shall mitigate adverse environmental impacts, reduce waste and prevent pollution.

ACCOUNTABILITY, TRANSPARENCY, AND ETHICS

Suppliers give unhindered access to facility in order to verify compliance and commit to engaging in improvement of identified non-compliances.

All subcontracting and homework activities must be disclosed and factory must maintain written authorization from Li & Fung and/or its customers.

Fraud, bribery and the undue influencing of a Li & Fung employee or designated Li & Fung representative are prohibited.