Design Salt Outdoor GmbH / Design Salt Inc. / COCOON ^®

Design Salt Outdoor GmbH / Design Salt Inc. USA / COCOON ^® is committed to ecologically sustainable and socially responsible business management. We expect the same from all our factories and other suppliers.

The contracting parties agree to the applicability of the following provisions for a joint Code of Conduct for all future cooperation. This Agreement forms the basis for all future productions. The contracting partners undertake to meet the principles and requirements of the Code of Conduct. Suppliers are required to contractually oblige their subcontractors to comply with the standards and regulations contained in this document. Design Salt Outdoor GmbH / Design Salt Inc. is authorized to verify compliance with the Code of Conduct by the supplier at any time, but the supplier is primarily encouraged to self-assess whether they comply with the Code of Conduct. Violations of this Code of Conduct may give cause and reason to terminate the business relationship.

This agreement comes into effect as soon as it has been signed.

The Code of Conduct is based on national laws and regulations as well as on the following international treaties:

• United Nations Universal Declaration of Human Rights
• United Nations Children’s Rights and Business Principles
• International Labour Organization (ILO) Conventions and Recommendations
• United Nations Guiding Principles on Business and Human Rights (UNGP)
• Gender Dimensions of the United Nations Guiding Principles on Business and Human Rights

The Code of Conduct (hereinafter referred to as “CoC”) forms the basis for all business relationships. The supplier accepts the values and principles described in the CoC and undertakes to implement all reasonable measures to ensure compliance with these within its scope of influence. Suppliers are requested to oblige their subcontractors to comply with the CoC.

Social responsibility:

No forced labour

It is prohibited to use forced labour, slavery or other similar involuntary work. The business partners grant their employees the right to leave their place of work and to terminate their employment contracts by giving the employer reasonable notice. The business partners ensure that employees are not subjected to inhumane or humiliating treatment, physical punishment, psychological or physical coercion and / or verbal insults. (ILO Conventions No. 29 and 105)

No child labour

Child labour must not be used in any phase of production. The suppliers are required to comply with the recommendations in the ILO Conventions regarding the minimum age for the employment of children. These state that the age should not be less than the age at which the general duty to attend school ends, and in any case should not be less than 15 years of age. (ILO Conventions No. 79, 138, 142 and 182)

Reasonable wages and salaries

The wages and salaries paid to employees must comply with all applicable wage and salary laws. If the statutory minimum wage is insufficient for covering living costs, the business partner shall pay wages and salaries that cover basic needs. Wage and salary deductions as means of punishment are prohibited. Employees shall be informed on an ongoing basis about the basis on which their wages and salaries are paid by way of wage and salary statements. (ILO Conventions No. 26 and 131)

Reasonable working hours

Working hours must comply with the applicable laws or industry standards. Overtime is only permitted if worked on a voluntary basis. Employees must be granted at least one day off after six consecutive working days. Weekly working hours must not regularly exceed 48 hours (ILO Conventions No. 1 and 14)

Freedom of association

The supplier shall respect the right of employees to freedom of association, union memberships, appeals to employee representatives or works council membership in compliance with local applicable laws. Employees must be able to communicate with company management openly and without fear of repercussions or harassment. (ILO Conventions No. 87 and 98)

No discrimination

Business partners are prohibited from discriminating against, ostracising or favouring persons on the grounds of gender, age, religion, race, caste, birth, social background, disability, ethnic or national origin, nationality, membership of labour organisations, including unions, political memberships or views, sexual preferences, family obligations, civil status or any other situation that could result in discrimination. The personal dignity, privacy and personality rights of every individual are respected. (ILO Conventions No. 110 and 111)

Health and safety in the workplace

The supplier must provide a safe and healthy working environment. Preventive measures that are required to prevent accidents and damage to health that could occur in connection with the work are implemented by developing and applying adequate occupational safety systems. Employees also receive regular information and training on applicable health and safety standards and measures. The business partners shall provide suitable medical care in the workplace and related facilities.

Employees are given access to sufficient drinking water, clean and safe food preparation and storage areas and clean, sanitary facilities. The business partners shall further provide all employees with effective personal protective equipment (PPE) free of charge. (ILO Conventions No. 155 and 164)

Complaint mechanisms

The supplier must set up an effective complaint mechanism for individuals and groups that may be affected by negative effects at company level.

Intellectual property

Intellectual property rights must be respected. Technology and know-how must be transferred so that the intellectual property rights and customer information are protected.

Confidentiality and Data Protection

The supplier undertakes to meet the expectations of its orders, suppliers, customers, consumers and employees with regard to the protection of personal information. The supplier shall comply with data protection and information security laws as well as statutory provisions when collecting, storing, processing, transmitting and transferring personal information.

The Supplier must have adequate safeguards, rules and procedures to ensure that they remain in compliance with all applicable laws that govern cross-border data transmissions, where applicable.

Ethical trading

The fair trading, advertising and competition standards must be complied with. The applicable anti-trust laws must also be applied, which prohibit contact with competitors, particularly agreements and other activities that influence pricing or conditions. These regulations further prohibit agreements between customers and suppliers which are aimed at restricting customers’ freedom to independently determine their prices and other conditions when reselling goods. The highest integrity standards must be applied to all business activities. The supplier herewith guarantees that it is not involved in corruption, blackmail or fraud nor any other form of bribery, including, but not limited to, promising, offering or granting unfair financial or other incentives. Methods for monitoring and enforcing the standards must be applied to ensure compliance with the anticorruption laws. Suppliers shall not participate in the falsification of information nor acts of deception within the supply chain.

Implementation of the requirements

We expect our suppliers to identify risks within the supply chain and to implement adequate measures. In the event of a suspected violation and to secure supply chains with increased risks, the company requires disclosure of the supply chains. The company audits compliance with the standards and regulations in this document with the help of a self-assessment questionnaire as well as sustainability audits at the suppliers’ production sites. The company reserves the right to implement suitable measures against suppliers which do not meet these requirements, which could ultimately result in the suspension or termination of a supply relationship.

Environmental responsibility and animal welfare:

Environmental protection and animals‘ rights are of high importance to us. We strive to minimize the impact of the production of our products on the environment.

Furthermore, we do not tolerate any form of animal mistreatment. All animals must be treated with respect and have the right to live a life in dignity.

Cotton from Uzbekistan and Xinjiang

The use of cotton from Uzbekistan and Xinjiang is prohibited.

Feathers and down

The use of feathers and down from ducks and geese is permitted if they are by- products of the food industry. The use of feathers and down from birds that are plucked alive is prohibited. The use of feathers and down from ducks and geese originating from foie gras production is prohibited. Furthermore, the use of feathers and down from grey geese is prohibited.

Wool

The use of Australian sheep’s wool is prohibited. Certified bio sheep’s wool and wool certified in accordance with the responsible Wool Standard is exempt from this ban as mulesing is not accepted within the scope of the certification. The use of sheep’s wool not originating from Australia is permitted.

Handling the EU Chemical Directive REACh

The supplier explicitly declares that the merchandise meets the regulations of the EU Chemical Directive REACh (Registration, Evaluation, Authorisation and Restriction of Chemicals; EC No 1907/2006). In accordance with Article 33 of the EU Chemical Directive REACh (Registration, Evaluation, Authorisation and Restriction of Chemicals; EC No 1907/2006), information about products containing more than 0.1% of substances of very high concern (SVHC) must be provided if requested by the customer. For further details in this respect, go to the ECHA website at: http://echa.europa.eu/chem_data/candidate_list_table_en.asp. We assume that the supplier is familiar with the EU Chemical Directive REACh (Registration, Evaluation, Authorisation and Restriction of Chemicals; EC No 1907/2006) and has initiated corresponding steps to fulfil the respective rights and obligations.

Restricted Substances according to USA California Proposition 65 and EU regulations:

The supplier explicitly declares that all materials and parts used for the merchandise are free from harmful substances according to current regulations and limits of USA California Proposition 65 and EU regulations.