PURCHASING CODE OF CONDUCT The KaDeWe Group GmbH

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1 PURCHASING CODE OF CONDUCT The KaDeWe Group GmbH (Version 1.1) At The KaDeWe Group GmbH we are commited to: A standard of excellence in every aspect of our business Ethical and responsible conduct in all of our operations Respect for the rights of all individuals Respect for the environment We expect that these same values and commitments are shared by all suppliers of The KaDeWe Group and that they will conduct themselves with the utmost fairness, honesty and responsibility in all aspects of their business. With this Purchasing Code of Conduct (hereinafter called: Code of Conduct ) The KaDeWe Group aims to facilitate the achievement of fair labour conditions throughout its whole supply chain, including sub-suppliers and subcontractors. This Code of Conduct provides a clear and common set of the fundamental requirements for all business partners in terms of the minimum standards that they must respect, implement and observe. The provisions set forth in this Code of Conduct constitute minimum and not maximum standards. This Code of Conduct shall not be used to prevent applicable international labour standards or national and/or local legislations from being met and/or exceeded. The firm principles of this Code of Conduct are consistent with: the United Nations Universal Declaration of Human Rights, the U.N. Conventions on the Rights of the Child and for the Elimination of All Forms of Discrimination against Women, the conventions of the International Labour Organization (herein after called ILO ), the principles of the U.N. Global Compact, the OECD Guidelines for Multinational Enterprises, EU Guidelines, and the Business Social Compliance Initiative (BSCI).

2 1. Scope of Application This Code of Conduct forms the basis of all business relationships in reference to all national and international production processes and production sites for the merchandise purchased by The KaDeWe Group. It applies around the world to The KaDeWe Group itself, its direct business partners and any other suppliers working on its behalf in the production of goods for The KaDeWe Group (hereinafter called Business Partners ). Business Partners guarantee, and shall be responsible for procuring, acceptance of and compliance with the principles set forth in this Code of Conduct. Business Partners will inform any suppliers, including sub-suppliers and/or subcontractors working on their behalf, of the contents and requirements of this Code of Conduct, and will ensure that they also observe the principles set forth in this Code of Conduct. Business Partners are required to respect and implement all the requirements of this Code of Conduct and the principles that underpin them. It is understood that the implementation of this Code of Conduct is the outcome of a process. Timelines for achieving compliance shall therefore be reasonable. 2. Involuntary Labour The KaDeWe Group does not tolerate any form of involuntary labour. All work must be conducted on a voluntary basis, and not under threat, be it direct or indirect, of any violence and intimidation, penalty or sanctions. The use of forced or compulsory labour in all its forms, including bondage, servitude, slavery and prison labour, when not in accordance with ILO Convention 29, is prohibited. We refer to ILO Conventions 29 and 105.

3 3. Child Labour The KaDeWe Group does not tolerate any form of child labour or any form of exploitation of young employees. Business Partners must comply with: the national regulation on minimum age for employment; or the regulation on completion of compulsory education; or any otherwise specified legal exceptions; whichever is more stringent. Business partners must at no time employ any person under the age of 15. Business Partners must not employ young employees under 18 years of age at night, or expose them to hazardous, unsafe or unhealthy conditions. We refer to ILO Conventions 79, 138, 142, 182 as well as ILO Recommendation Discrimination The KaDeWe Group does not tolerate any form of discrimination of employees. Equal opportunities in terms of recruitment, compensation, benefits, access to training, promotion, termination or retirement must be respected. Business Partners must not engage in, support or tolerate discrimination in employment including recruitment, hiring, training, working conditions, job assignments, pay, benefits, promotions, discipline, termination or retirement on the basis of gender, age, religion, marital status, race, caste, social background, diseases, disability, pregnancy, ethnic and national origin, nationality, membership in worker organizations including unions, political affiliation, sexual orientation, or any other personal characteristics. We refer to ILO Conventions 100, 111, 143, 158 and 159.

4 5. Health and safety Business Partners must provide safe and clean conditions for all employees in all work and residential facilities. A clear set of procedures regulating occupational health and safety must be established and followed. Adequate steps must be taken to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work, by minimizing the causes of hazards inherent in the working environment. Adequate safeguards against fire must be provided and the strength, stability and safety of buildings and equipment, including residential facilities where provided, be ensured. Access to adequate medical assistance and facilities must be provided. Access to sufficient and clean toilet facilities, to potable water and, if applicable, sanitary facilities for food preparation and storage must be provided. Regular and recorded health and safety training on applicable health and safety regulations and measures must be provided to all employees and handling and disposal of chemicals and other dangerous materials to relevant employees We refer to ILO Convention Disciplinary Measures The KaDeWe Group does not tolerate any form of harassment or abuse of employees. Business Partners shall treat all employees with respect and dignity and shall not engage in or tolerate corporal punishment, bullying, threats of violence or other forms of physical, sexual, psychological or verbal harassment and abuse. Written disciplinary procedures must be established and be explained in clear and understandable terms to all employees. All disciplinary actions must be recorded. We refer to ILO Conventions 100 and 111.

5 7. Freedom of association and the right to collective bargaining Business Partners will respect the right of employees to associate, organize and bargain collectively in a lawful and peaceful manner without discrimination, penalty or interference. Employees have the right to join or form trade unions of their own choosing and to collectively bargain, without prior authorization from Business Partners management. Business Partners must not interfere with, obstruct or prevent such legitimate activities. Where the right to freedom of association and collective bargaining is restricted or prohibited under law, Business Partners must not hinder alternative forms of independent and free employee representation and negotiation for bargaining purposes, in accordance with international labour standards. We refer to ILO Conventions 87, 98, 135, and 154 as well as ILO Recommendation Compensation and benefits Business Partners must ensure a recognized employment relationship established in compliance with national legislation and practice and international labour standards, whichever affords the greater protection. Business Partners guarantee that their employees terms of employment are documented in writing and that all legally required benefits, including paid leave, are provided to all employees. Excessive use of fixed term contracts of employment, or any comparable arrangements, must not be used to circumvent obligations to employees under domestic labour or social security laws and regulations arising from the regular employment relationship Business Partners guarantee that the wages paid to employees equal or exceed the minimum wage prescribed by law or applicable industry-specific custom, whichever is higher. The wage paid must be sufficient to cover an employee s basic needs. All overtime worked must be compensated at a premium rate, as required by law and, where applicable, by contractual agreement.

6 Wages must be disbursed in a manner that is convenient for employees and details of employees wages for the pay period concerned must be provided in a comprehensive manner. Any deductions from wages which are illegal, unauthorized or not provided for by national law are prohibited and no deduction from wages must be made as a disciplinary measure. We refer to ILO Conventions 26 and Working Hours Business Partners must set working hours that comply with national laws or benchmark industry standards or relevant international standards, whichever standard is more stringent and affords greater protection to ensure the health, safety and welfare of employees. The maximum number of weekly hours permitted by national law must not be exceeded. The standard allowable working hours in a week are 48, excluding overtime. Employees must not on a regular basis be required to work in excess of 48 hours per week. Overtime must be voluntary, must not exceed twelve hours per week and not be requested on a regular basis. Business Partners must respect all employees right to at least one free day of rest following six consecutive days worked as well as public and annual holidays. We refer to ILO Conventions 1 and 14.

7 10. Environmental Protection Business Partners must comply with all applicable environmental and endangered species protection laws and regulations. Business Partners are expected to undertake an ongoing effort to prevent and reduce environmental contamination and commit to protecting the environment at all stages of product development, work organization, production and sales. Processes and standards prescribed for waste management, for the handling and disposal of chemicals and other hazardous substances must be observed as well as for emissions and wastewater treatment, with special emphasis placed on the protection and preservation of natural resources. 11. Management Systems Business Partners shall introduce a management system, which must include clear responsibilities and processes as well as adequate documentation, to ensure the implementation and the monitoring of and the ongoing compliance with the principles set forth in this Code of Conduct. The KaDeWe Group reserves the right to inspect the documentation when and as required and Business Partners agree to present any relevant documentation to The KaDeWe Group when and as requested. 12. Monitoring the Code of Conduct Business Partners are responsible for enforcing the principles of this Code of Conduct and The KaDeWe Group is entitled to monitor Business Partners compliance with this Code of Conduct. Business Partners are obligated to have their production sites undergo social audits at the request of The KaDeWe Group, either by The KaDeWe Group itself or by any third party authorized by The KaDeWe Group. Monitoring activities to confirm compliance with this Code of Conduct may include unannounced on-site inspections of production sites and facilities, and employer-provided housing where applicable.

8 For the purpose of monitoring compliance with this Code of Conduct, Business Partners must notify The KaDeWe Group of the name and location of all production sites used for the production of goods for The KaDeWe Group in the section provided at the end of this Code of Conduct. The KaDeWe Group requests that an authorized representative of a listed production site signs this Code of Conduct. 13. Information and Communication Business Partners must ensure that the provisions of this Code of Conduct are communicated to employees and that it is prominently displayed in the appropriate national language at all production sites and freely accessible to all employees at all times. 14. Sanctions and Remedial Actions Business Partners must guarantee that the production of goods for The KaDeWe Group is carried out exclusively at the production sites indicated by the Business Partners. Where instances of noncompliance with and violations of the principles of this Code of Conduct are found, Business Partners must undertake remedial actions within a reasonable amount of time. Only after completion of all required remedial actions, can new orders be placed at the production site. Failure to comply with these provisions is adequate justification for the immediate and unconditional termination of all business and contractual relationships. 15. Validity The obligations arising from this Code of Conduct become legally binding upon signature of the same by Business Partners and form an integral part of the purchasing terms and conditions of The KaDeWe Group.

9 Declaration This Code of Conduct document must be signed by a duly authorized representative of the undersigned company and be returned to The KaDeWe Group. We, hereby declare and confirm that: (Company Name & BBN), We have received and taken due note of The KaDeWe Group Code of Conduct. We are aware of all relevant laws and regulations of the country or countries in which our company operates. We will inform The KaDeWe Group in case of conflict between provisions of this Code of Conduct and any applicable laws or regulations in our countries of operation. We will observe and comply with this Code of Conduct in its entirety and without amendment or abrogation. We will inform any suppliers (including sub-suppliers and/or subcontractors) working on our behalf and named on the attached List of Production Sites of the contents and requirements of this Code of Conduct, and we will ensure that they also observe the principles set forth in this Code of Conduct. We will inform The KaDeWe Group in case of any changes to our production sites that manufacture goods for The KaDeWe Group. We accept and allow that The KaDeWe Group and any individuals or organizations acting on their behalf may carry out social audits with or without notice at our business premises and/or Production Sites and the business premises and/or Production Sites of our subcontractors at any time. Name of company: Address of company: Name of authorized company signatory: Position: Signature: Date: Company stamp

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