California Transparency in Supply Chains Act Disclosure Statement

For more than 40 years, Kids II has been committed to providing quality products and the observance of high ethical standards in the conduct of our business. We promote honesty, integrity, accountability and compliance with laws as core values of our culture. All levels of employees within the company agree and acknowledge that employment is conditional upon the adherence to and compliance with the highest standards and business practices and requirements of ethical conduct and that at all times employees’ conduct and ethics must be above reproach. We respect the personal dignity and individual worth of every human being and comply with all applicable human rights laws.

Our global supply chain partners are required to be committed to high ethical standards and compliance with applicable laws, including those laws relating to human trafficking and slavery. Violators are subject to disciplinary action, up to and including termination of our business relationship.

The manufacturers of our products are required to sign an acknowledgement of their compliance with applicable laws and standards. In addition, prior to commencing a business relationship with them, their factories are subjected to an audit by Kids II to determine compliance with our requirements in meeting the high ethical standards and business practices which we embrace. Once accepted, we offer to provide training at the factories in the proper procedures to follow in the hiring of employees.

We routinely audit our direct supply chain partners to ensure the quality and safety of our products and to verify compliance with applicable laws. In some instances, these audits are performed by outside third parties. Audits are generally conducted on an announced basis, but periodically may be conducted on an unannounced basis.

We are also participants in the C-PTAT program which requires a 7 point inspection of every container before it is loaded, including recordings of the actual loading and sealing of the containers. Our suppliers are subject to an annual GSV (Global Security Verification) audit conducted by third party auditors. The GSV audit addresses all C-TPAT related activities to ensure a secure supply chain.

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