pg. 2

"2. Audit Procedures. Each supplier that we verify must agree to allow us, or an independent third party hired by us through our independent service provider, to conduct an audit of the supplier’s business unannounced, without prior notice, to ensure compliance with our human trafficking and forced labor standards. Generally, a third party conducts announced or unannounced audits of each of our approved factories at least annually to ensure compliance. We, through our third party service provider, may conduct more frequent reviews of suppliers located in countries designated as high risk by the U.S. State Department’s Trafficking In Persons Report. Exemptions from annual audits may be granted to highly compliant factories based on the previous year’s audit scores."