Vendor Guidelines - amretailgroup.com

1 Vendor Guidelines Effective October 1, 2018 Table of Contents STATEMENT OF 4 Vendor Guidelines ACKNOWLEDGEMENT .. 5 Vendor CODE OF CONDUCT .. 6 Vendor SET-UP PROCESS .. 10 NEW Vendor SET-UP PROCESS .. 10 NEW FACTORY SET-UP PROCESS .. 10 APPROVED FOR PRODUCTION COUNTRY LIST .. 11 FACTORY COMPLIANCE .. 12 NEW FACTORY INTRODUCTION .. 12 AMRG TRANSPARENCY POLICY .. 13 UNSOLICITED PAYMENTS POLICY .. 15 SUBCONTRACTING POLICY .. 15 FACTORY ACCESS POLICY .. 15 BRANDED MERCHANDISE POLICY .. 16 FACTORY DISCLOSURE FORM .. 17 ACKNOWLEDGEMENT FORM .. 18 FACTORY EVALUATION .. 19 PRODUCT COMPLIANCE .. 21 CALIFORNIA PROPOSITION 65 .. 21 CONFLICT 21 PRODUCT TESTING .. 22 COLLATERAL Guidelines .. 23 ACCESSORIES Guidelines .. 24 PRODUCTION Guidelines ACCESSORIES .. 24 ACCESSORY PACKING Guidelines .. 26 TICKETING .. 28 FACTORY DEFECTS (ALL PRODUCT CATAGORIES) .. 29 APPAREL/GARMENT Guidelines .. 30 GARMENTS .. 30 TICKETING .. 36 FOOTWEAR Guidelines .

2 38 BUY 38 FOOTWEAR COMPLIANCE POLICY .. 38 FACTORY DEFECTS .. 39 LIQUIDATION OF BRANDED PRODUCTS .. 39 PRE-PRODUCTION SAMPLE PROCESS GH BASS PROTO REQUIREMENTS .. 40 CONFIRMATION SAMPLE PROCESS .. 40 FIT APPROVAL PROCESS .. 42 LACING STANDARDS .. 44 LABELING AND PACKAGING REQUIREMENTS .. 45 SUPPLIER CONTACT INFORMATION .. 47 ANTI-MOLD PACKING INSTRUCTION .. 48 PRODUCTION PLANNING AND DELIVERIES .. 55 SPLIT SHIPMENTS .. 55 AIR SHIPMENTS .. 56 GENERAL CARTON REQUIREMENTS .. 57 CARTON MARKING 58 PACKING SLIP REQUIREMENTS .. 59 TRANSPORTATION AND ROUTING .. 60 GENERAL DELIVERY 60 DOMESTIC LDP (LANDED DUTY PAID) SHIPMENT ROUTING INSTRUCTIONS .. 60 DOMESTIC DDP (DELIVERED DUTY PAID) SHIPMENT ROUTING 61 DIRECT TO STORE SHIPMENT ROUTING INSTRUCTIONS .. 62 INTERNATIONAL (FREE ON BOARD) SHIPMENT ROUTING INSTRUCTIONS .. 63 Effective October 1, 2018 3 CUSTOMS COMPLIANCE .. 75 RETAIL GROUP COMPLIANCE .. 78 PENALTY ASSESSMENT .. 78 APPENDICES (SEE ADDITIONAL DOCUMENTS ON WEBSITE).

3 79 Effective October 1, 2018 4 STATEMENT OF PURPOSE In a continued effort to sell quality products and to expedite the flow of goods, AM Retail Group, Inc. requires vendors to follow the packaging and routing instructions in this guide. Failure to comply with AM Retail Group Inc. s requirements will result in chargeback s to the Vendor . At AM Retail Group, Inc., our Vendor /supplier relationships have always been a very valuable part of our business. We are dedicated to ensuring that our supplier standards are in conformity with those of the retail industry as a whole, which in turn will translate into increased sales and profitability for AM Retail Group, Inc. and our Vendors. As we continue to grow, updates and revisions will be sent to you. It is your responsibility to ensure that the proper personnel within your organization are made aware of procedures and updates. Vendor Guidelines ACKNOWLEDGEMENT As an authorized representative of ( Vendor ), I acknowledge receipt of the AM Retail Group, Inc.

4 ( Company ) Vendor Guidelines . Vendor has read and understands Company s Vendor Guidelines , including the policies, procedures and terms contained therein and any revisions thereof, and warrants and represents that Vendor and its manufacturing facilities (i) are in full compliance with the expectations published in the Vendor Guidelines and (ii) will remain in full compliance Company s Vendor Guidelines at all times, as well as any additional laws, ordinances, rules and regulations applicable to Vendor . Vendor acknowledges that the Vendor Guidelines may be revised from time to time by Company. Vendor will review at least quarterly any revisions to the Guidelines , available at , and Vendor will abide by such Vendor Guidelines , as amended. The authorized representative signing below represents that he/she has authority to enter into this Agreement on behalf of Vendor . Vendor Name: Vendor Address: Country: Telephone Number: Authorized Representative Name: Authorized Representative Title: Authorized Representative Email: Authorized Representative Signature: Date of Signature: Effective October 1, 2018 6 Vendor CODE OF CONDUCT This document sets forth the expectations and Guidelines for all vendors and factories that provide merchandise to AM Retail Group, Inc.

5 (AMRG) and is incorporated into and a part of the Vendor Guidelines . AMRG has a long-standing commitment of conducting its business in accordance with high moral, ethical, and legal standards, and in compliance with all applicable laws. We choose vendors and factories who share this commitment. While AMRG recognizes that there are different cultural, legal, and ethical environments in the countries throughout the world in which merchandise purchased by AMRG is manufactured, this Vendor Code of Conduct sets forth the basic minimum requirements that all AMRG s vendors and factories must meet in order to do business with AMRG. AMRG strongly encourages vendors to exceed these standards and promote the best practices in all factories in which they manufacture merchandise. AMRG will use an on-site Internal Compliance Monitoring ( ICM ) Audit of its business partners to ensure compliance with these standards. Legal Requirements AMRG s vendors and factories must operate in full compliance with the applicable laws, regulations, rules and local legal requirements relevant to the conduct of their business.

6 They must adopt and adhere to rules and conditions of employment that respect workers and, at a minimum, safeguard their rights under applicable national and international labor and social security laws and regulations. We will seek vendors and factories who respect the legal and moral rights of the employees. Child Labor The use of Child Labor is strictly prohibited. Employees of AMRG s vendors and factories must be over the applicable minimum legal age requirement, which is generally 16 years old, but no persons shall be employed under the age the 15, or under the age for completion of compulsory education, whichever is higher. The vendors and factories must observe all legal requirements for work of authorized minors, particularly those pertaining to hours of work, wages, minimum education, work type and working conditions. Facilities must maintain proper documentation of each worker s date of birth. AMRG supports the development of lawful, legitimate workplace apprenticeship programs.

7 Forced or Compulsory Labor The use of forced or compulsory labor is prohibited. AMRG s vendors and factories shall not in any way use or support the use of forced labor, whether in the form of prison labor, indentured labor, bonded labor or otherwise. Mental and physical coercion, slavery, and human trafficking are prohibited throughout our supply chain. Health & Safety The employer shall ensure all applicable laws, regulations, and rules that pertain to the health and safety in the workplace are followed. The employer, bearing in mind the prevailing knowledge of the industry and of any specific hazards, shall provide workers a clean, safe, and healthy working environment, including systems and training designed to help prevent accidents, illness, and injury attributable to the operation of the facility and machinery. Responsible measures must be adopted to mitigate negative impacts on the environment. Employers must provide all required and appropriate workers compensation coverage in the event of injury.

8 The employer shall appoint a management representative who is accountable for the health and safety of all personnel. Effective October 1, 2018 7 Freedom of Association and Right to Collective Bargaining The vendors and factories shall recognize and respect the right of works to freedom of association and collective bargaining as required by local law, regulations and practice. No worker shall be subject to harassment, intimidation, or retaliation in their efforts to freely associate or bargain collectively. The Employer shall allow union organizers access to employees and shall recognize the union of the employees choice in accordance with the local laws and regulation. Non-Discrimination All employment decisions, including but not limited to hiring, job assignment, wages, bonuses, allowances and other forms of compensations, promotion, discipline, work assignments, termination of employment, provisions of retirement, shall be made solely on the basis of education, training, and demonstrated skills or abilities.

9 Employers shall not discriminate in employment, including gender, race, religion, age, disability, sexual orientation, nationality, political opinion, or social class or ethnic origin. Employers must act in accordance with law and not improperly discriminate. Disciplinary Practices The employer shall document and communicate to all workers a progressive disciplinary policy, , escalating disciplinary action steps such as verbal warning, written warning, suspension, and termination. Any exceptions to this rule, , immediate termination for theft or assault, shall be clearly communicated to workers. Harassment and Abuse The employers must treat employees with respect and dignity. AMRG will not utilize vendors and factories that use or permit the use of corporal punishment, physical, sexual, psychological, or verbal harassment, or other forms of mental or physical coercion, abuse or intimidation, as defined and prohibited by local law. Wages, Compensations, and Benefits Wages are essential for meeting the basic needs of workers.

10 Every worker has a right to compensation for a regular work week that is sufficient to meet the worker s basic needs and provide some discretionary income. The employer shall ensure that wages paid for all hours worked meet at least the legal minimum wage required by the local law and regulations or the appropriate prevailing wage, whichever is higher. The employer shall provide all legally mandated fringe benefits and wage requirements to all employees as required by law or contract. Employees shall be compensated for overtime hours at the rate established by law or regulations in the country of manufacture or, in those countries where such laws do not exist, at least equal to their regular hourly wage rate. If the compensation paid does not meet the worker s basic needs and provide some discretionary income, our business partners are required to take appropriate actions that seek to progressively realize a level of compensation that does. Effective October 1, 2018 8 Working Hours The employees shall not be required to work (inclusive of overtime) more than the local legally prescribed limits.