Supplier Code of Conduct

Augusta Sportswear, Inc. (collectively with its affiliated entities, “ASI”) strives to achieve and is committed to the highest ethical standards and offering safe, high quality merchandise and wholesale services. ASI expects and requires the same commitment from everyone with whom ASI or its affiliates has commercial dealings (“Suppliers”).

The ASI Supplier Code of Conduct (the “Code”) sets out the requirements expected of our Suppliers regarding compliance with laws and regulations, corruption and bribery, social and working conditions, and protection of the environment. The Code’s standards are based on International Labor Organization standards and internationally accepted good labor practices. Our goal is to work with our Suppliers to assure full compliance with these requirements as they, in turn, take the responsibility to implement these requirements and necessary due diligence processes with their own employees, agents, temporary workers, subcontractors, suppliers and sub-suppliers with whom they work with in the delivery of goods and services to ASI.

The Code must be visibly posted in English and in the shared language(s) of Supplier’s employees in a common area at all facilities that manufacture products for ASI. Suppliers shall create internal programs for handling reports of workplace grievances, including anonymous reports. The provisions of the Code are in addition to, and not in lieu of, the provisions of any legal agreement or contract between Supplier and ASI. We expect Suppliers to hold their supply chain, including subcontractors and third party labor agencies, to the same standards contained in the Code. The Code does not create any third-party beneficiary rights or benefits for suppliers, subcontractors, their respective employees or any other party.

Reporting Violations: To report suspected violations of this Code of Conduct e-mail ASI strictly prohibits any retaliation against persons who report violations of this Code of Conduct or assist or participate in any manner in any investigation of possible violations of this Code of Conduct. Any retaliation should be reported to ASI as outlined above.

Suppliers shall comply with all applicable domestic and international law, regulations, ordinances, industry safety standards, and all other relevant statutory requirements whichever requirements impose the highest standards of conduct. These include, but are not limited to, the Federal Trade Commission Act; the Fair Packaging and Labeling Act; the Consumer Product Safety Act; the Child Protection Safety Act of 1969; the California Safe Drinking Water and Toxic Enforcement Act of 1970 (also known as Proposition 65); the Flammable Fabrics Act of 1953; the Federal Hazardous Substances Act; the Textile Fiber Products Identification Act; and such laws related to the importation and labeling of products, packaging, and shipping cartons and containers.

To that end, each Supplier will complete the attached Certificate of Compliance and submit yearly audits conducted by an independent 3rd party Nationally Recognized Test Laboratory, such as UL, TUV, ETL or SGE at Supplier’s sole cost, to ASI or its designated agent in order for ASI to assess and monitor Supplier’s compliance with the Code.

ASI is committed to ensuring that all workers involved in the production of any ASI products are treated with humanity and dignity and are entitled to his or her basic human and civil rights. ASI expects all Suppliers, and any third party working on their behalf to comply with any and all applicable international, national, state and local laws and regulations pertaining to their employment practices and policies, including but not limited to minimum wage, overtime, and prompt delivery of wages provisions and all laws and regulations prohibiting child labor, slavery and human trafficking.

Child Labor: Suppliers shall not, under any circumstances, use child labor as defined by the International Labor Organization and/or national law, whichever is more stringent. In no event will Suppliers employ workers under age 15 or the age for completion of compulsory educations, whichever is higher.

Forced Labor: Slavery and human trafficking can take many forms including forced and child labor. Suppliers and any third party working on their behalf, shall not, under any circumstances, use forced, bonded or indentured labor or involuntary prison labor.

Compensation: Suppliers shall provide wages and benefits that comply with all related applicable laws, regulations and industry standards. Wages and benefits paid for a standard working week shall meet at least legal or industry minimum standards, or comply with legally binding, freely negotiated collective bargaining agreements, whichever is higher. Every worker has the right to compensation for a regular work week that is sufficient to meet the workers’ basic needs and provide some discretionary income. Deductions from wages as a disciplinary measure shall not be permitted unless authorized by applicable law. Where compensation does not meet workers’ basic needs and provide some discretionary income, each employer shall take appropriate actions that seek to progressively realize a level of compensation that does. Working Hours: Suppliers will not require workers to work more than the regular and overtime hours allowed by applicable law. In no event will the regular work week exceed 48 hours, and workers will be allowed at least 24 consecutive hours of rest in every seven-day period. All overtime work will be consensual. Suppliers will not request overtime on a regular basis and will compensate for overtime work at a premium rate. Other than in exceptional circumstances, the sum of regular and overtime hours in a week will not exceed 60 hours.

Non-Discrimination: Suppliers shall employ workers based solely on their ability to do the job and shall not subject employees to discrimination in hiring, compensation, advancement, discipline, termination or retirement including discrimination on the basis of gender, age, color, ethnicity, nationality, religion, sexual orientation, disability, political opinion, or any other basis prohibited by law.

Women's Rights: Suppliers shall ensure that women workers will receive equal remuneration, including benefits, equal treatment, equal evaluation of the quality of their work, and equal opportunity to fill all positions open to male workers and shall provide appropriate services and accommodation to women workers in connection with their pregnancies.

Harassment, Abuse and Disciplinary Practices: Suppliers are to treat all employees with fairness, respect and dignity and shall not engage in physical, psychological, verbal, sexual or any other harassment or abuse, inhumane or degrading treatment, corporal punishment or any form of intimidation. Suppliers shall comply with local laws and regulations on disciplinary practices.

Freedom of Association and Collective Bargaining: Suppliers shall respect the rights of employees to form and join trade unions and bargain collectively.

Health and Safety: Suppliers shall provide their employees with a safe and clean work environment and residential accommodations (where applicable) to prevent accidents and injury to health arising out of, linked with, or occurring in the course of work or as a result of the operation of employers’ facilities’ in compliance with all applicable laws, regulations and industry standards. Suppliers shall involve workers in the process of identifying and mitigating risks to worker’s health and safety and take proactive measures to prevent workplace hazards.

Working Conditions: Suppliers shall provide their employees with adequate working facilities which, at a minimum, shall ensure reasonable access to potable drinking water and sanitary facilities; fire safety; access to emergency medical care; and adequate lighting and ventilation.

Environment: ASI Suppliers must comply with any and all applicable environmental laws, regulations, codes, ordinances and industry standards. Suppliers shall implement policies and procedures to ensure environmental impacts are minimized with respect to energy, air emissions, water, waste, hazardous materials and other significant environmental risks. Hazardous Substances: Suppliers shall minimize the use of hazardous substances and comply with environmental laws, including all laws related to waste disposal, air emissions, discharges, toxic substances, and hazardous waste disposal. Suppliers shall inform employees on relevant safety practices and provide appropriate training.

Suppliers shall conduct their business in accordance with the highest ethical standards. Suppliers shall comply with all applicable domestic and international laws and regulations, particularly concerning corruption, bribery, anti-trust/competition, intellectual property, and conflicts of interest.

Anti-Corruption/Anti-Bribery: Suppliers shall not, directly or indirectly, tolerate, permit or engage in any act of corruption, extortion or embezzlement, nor in any form of bribery, corruption, or unethical practices under any circumstances including without limitation those prohibited by the Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. §§ 78dd-1, et seq. ("FCPA").This includes but is not limited to the promising, offering, giving or accepting of any improper monetary or other incentive such as bribes, unreasonable business entertaining and gifts as well as kickbacks whether in dealings with public officials, party officials or individuals in the private sector.

Anti-Trust/Free Competition: Suppliers shall commit to the principle of free competition and not engage in collusive bidding, price fixing, price discrimination, or other unfair trade practices.

Intellectual Property: Suppliers shall respect the intellectual property rights of others, including but not limited to patents, trademarks, trade dress, trade secrets and copyrights. Suppliers shall take appropriate steps to safeguard and maintain confidential and proprietary information or trade secrets of its business partners and use such information only for the purposes authorized in contractual agreements. Suppliers shall not authorize any subcontractors, subsuppliers, etc. to use, implement ASI’s intellectual property without ASI’s prior written approval.