pg. 3

"In addition to the contractual obligation, we evaluate our supplier’s compliance with the Manufacturer Code through audits conducted both by Fossil Group employees and third party compliance auditing firms. In most cases the audits are announced."

...

"As part of our risk assessment, we require completion of a factory self -assessment of all potential Tier 1 and Tier 2 suppliers. We evaluate the responses and determine if follow-up questions are needed. A manufacturer’s geographic location, nature of its manufacturing activities and anticipated production output are included in the consideration of the risk of the supplier."