Hemtex Purchasing Instructions

2 Hemtex Code of Conduct

For us at Hemtex it is important to take responsibility for our actions. One of our
responsibilities is towards the people taking part in the production of our products. We have
to ensure that nobody is deprived of his or her human rights or suffers mental or bodily harm.

In order to make Hemtex position clear to our suppliers and co-workers, as well as any other
parties, we have set up a Code of Conduct. This Code of Conduct applies to all the suppliers
and their subcontractors which are involved in the manufacture or supply of products to
Hemtex.

While Hemtex recognises that there are different legal and cultural environments in which
factories operate through out the world, this Code of Conduct sets forth the basic
requirements that all the suppliers must meet in order to do business with Hemtex. The
conditions set out in the Code of Conduct are merely minimum requirements.

The supplier must observe relevant UN Conventions and International Agreements, for
example ILO conventions 29 (Forced Labour), 87 (Freedom of Association), 98 (Right to
Organise and Collective Bargaining), 100 (Equal Remuneration), 105 (Abolition of Forced
Labour), 111 (Discrimination), 138 (Minimum Age) and 182 (Worst Form of Child Labour).

The suppliers are responsible that all factories involved in the manufacture of the products to
Hemtex follow this Code of Conduct, either the Supplier own the relevant factory or not.

1. IMPLEMENTATION AND MONITORING

1.1 Implementation
All suppliers must communicate this Code of Conduct to all employees and subcontractors
involved in the production of Hemtex products. The supplier shall ensure that the
requirements are implemented and require a signed document where the subcontractor
acknowledge and accept the requirements.

1.2 Monitoring
All suppliers are obliged to inform Hemtex about where each order is being produced.
Hemtex reserve the right to make announced or unannounced visits at any time to all places
of production, including the subcontractors, for goods intended for supply to Hemtex. Hemtex
furthermore reserves the right to assign an independent third party to conduct inspections in
order to ensure compliance with Hemtex Code of Conduct. Hemtex or any third party
representing Hemtex shall have free access to all relevant document and records

Hemtex Code of Conduct is dependent on trust, respect and co-operation. All observations,
discussions and written information received from the supplier will be treated confidentially by
Hemtex and any third party appointed by Hemtex.

1.3 Non-compliance
If Hemtex find that a supplier does not comply with the Code of Conduct and if corrective
measures are not taken with in an agreed time limit, we will terminate our business
relationship with this supplier.

We hereby confirm that we accept Hemtex Code of Conduct (date and signature)

…………………………………………………………………………………..

Chapter 2 version 3.0 0811 1(5)

 Hemtex Purchasing Instructions

2. LEGAL REQUIREMENTS

Suppliers that manufacture products to Hemtex shall operate in full compliance with all
applicable laws, rules and regulations in the countries where they are operating. The supplier
shall always comply with the most demanding requirements, whether they are relevant
applicable laws or Hemtex requirements.

Should any of the following requirements in this Code of Conduct be in violation of the
national law in any country or territory, the law should always be followed. In such a case, the
supplier must inform Hemtex immediately when receiving this Code of Conduct or when the
relevant mandatory national law is implemented.

3. CHILD LABOUR

3.1 Prevention of child labour

Hemtex suppliers shall not use Child labour.

A child in this context is defined as any person less than 15 years of age according to ILO
Minimum Age Convention no. 138, unless local minimum age law stipulates a higher age, in
which case the higher age would apply. If the local minimum working age is set at 14 years
of age in accordance with exceptions for developing countries, the lower age will apply.

The supplier shall take the appropriate measures to ensure that no child labour occurs at the
own place of production or at subcontractors places of production. The supplier shall
maintain official documentation for every worker that verifies the worker’s date of birth.

If a child is found in any place of production, Hemtex will require that the measures taken by
the supplier take the child’s best interests into consideration. Hemtex will not ask the supplier
to dismiss a child without a discussion about the child’s future. Any costs for education etc
have to be paid by the factory.

3.2 Young workers

According to the UN Convention on the Rights of the Child, a person is a child until the age
of 18. The supplier shall therefore protect young persons of legal working age, up until the
age of 18, according to the article 32.1 in the UN Convention Rights of the Child. The
children shall be protected from economic exploitation and from performing any work that is
likely to be hazardous or to interfere with the child's education, or to be harmful to the child's
health or physical, mental, spiritual, moral or social development.

All suppliers shall also comply with all national applicable child labour laws, including those
related to hiring, wages, working hours, overtime and working conditions.

4. FORCED LABOUR AND DISCIPLINARY ACTIONS

The Hemtex supplier shall not use forced, prison, bonded or involuntary labour. Bonded
labour also means bonded by financial debts or deposits. The supplier shall allow the
workers to leave the factory area when their work shifts ends and the supplier shall not
withhold ID cards, or require deposits.

The Hemtex supplier shall not use corporal punishment or any other form of physical or
psychological coercion such as threats of violence, sexual harassment, or other abuse.

Chapter 2 version 3.0 0811 2(5)

 Hemtex Purchasing Instructions

5. DISCRIMINATION

No worker shall be discriminated against because of race, gender, age, political affiliation,
religion, ethic and national origin, caste, sexual orientation, maternal status, membership in
worker’s organisations including unions or any other personal characteristics.

The supplier shall base decisions regarding hiring, salary, benefits, promotion, termination
and retirement on workers individual skills and ability to do the job.

6. FREEDOM OF ASSOCIATION

Workers shall be free to join associations, including unions, of their own choice. The supplier
shall not interfere with workers who wish to lawfully and peacefully associate, organise or
bargain collectively. The decision whether or not to do so shall be made solely by the
workers.

7. WAGES AND WORKING HOURS

7.1 Contracts
All employees at Hemtex’ suppliers shall be employed according to applicable laws and be
entitled to an employment contract. The contract must contain everything specified in local
legislation and as a minimum the following: employer, name of employee, birth date, position,
salary, working hours, overtime compensation, benefits and notice time.

7.2 Attendance records and wage lists

The supplier shall maintain attendance records and wage lists documenting the working
hours and payment of wages for each employee, including piece rate and temporary
workers. These records shall be available in case of a Hemtex audit.

The supplier shall provide all workers with wage statement for every period, which includes
date of payment, number of days worked, wage or piece rate earned per day, hours of
overtime and overtime compensation, bonuses and any deductions.

7.3 Working hours and leaves

The working hours and overtime shall be in compliance with applicable national laws and
industry standards, but shall not on a regular scheduled basis exceed 60 hours per week
including overtime. Overtime must be on voluntary basis.

The supplier shall provide its employees with appropriate time off for meals and breaks and
all workers shall have at least one day off of every week of seven days.

Employees shall have time off from their job according to the applicable legislation, local
traditions or industry standards(e. g. sick leave, annual leave, maternity leave, national
holidays etc.). The supplier shall follow the principle that benefits the employee the most.

7.4 Wages and benefits

Workers shall be paid at least the legal applicable minimum wage and all workers shall be
compensated for all overtime hours worked according to the legal requirements.

Wages should be paid regularly and on time to all workers. Wages shall be paid at least
monthly. The supplier shall not withhold any workers salary.

All suppliers shall provide its employees with all legally mandated benefits (e. g. medical
insurance, social insurance, pensions, maternity leave etc.)

Chapter 2 version 3.0 0811 3(5)

 Hemtex Purchasing Instructions

8. HEALTH AND SAFETY

The supplier shall treat all workers with respect and dignity and provide them with a safe and
healthy environment.

The supplier shall comply with the requirements in 8.1-8.4 and all applicable local laws and
regulations regarding working conditions, including worker’s health and safety, sanitation, fire
safety, risk protection and electrical, mechanical and structural safety.

8.1 General health and safety

The supplier shall ensure that all employees are aware of the safety risks in their production
area and they shall be given necessary safety training before operating machines and other
equipment.

All machines and other equipment in the factories shall be equipped with necessary safety
devises, safety instructions and warnings. The supplier shall provide PPE (personal
protective equipment) to all workers in any harmful work area. The supplier shall ensure the
PPE is used and maintained.

The supplier shall make sure that other hazards and risk are avoided, e.g. damaged
staircases, dangerous electrical wires, unsafe storage of gas and other flammable products,
baths with hazardous chemicals which easily splash into the work place, unsecured places
where the workers can fall from heights etc.

8.2 Factory conditions

The factories shall be sufficiently lighted and ventilated; there must be windows, fans and/or
air conditioners and/or heaters in all work areas for adequate circulation, ventilation and
temperature control.

The supplier shall provide clean drinking water for all workers The water must be provided
within a reasonable distance of the work areas and the supplier shall allow access to it
throughout the working day.

The supplier shall ensure that an adequate number of clean and sanitary toilets and washing
areas are available for both men and women. The supplier shall ensure they are maintained
properly.

8.3 Fire safety

All buildings shall be inspected and approved by the fire authorities

The supplier shall train an adequate number of employees in each work area, covering all
shifts, to use the fire fighting equipment.

The supplier shall have the appropriate fire fighting equipment and it should be regularly
maintained and kept visible and accessible for all workers. Placing and maximum distance
shall comply with applicable laws.

There shall be at least two independent emergency exits per working area. All emergency
exits shall be clearly marked with lights and shall not be blocked and remain accessible/
unlocked during all working hours.

All factories must have evacuation plans and fire alarms. The alarm must function also during
power-cuts. Fire drills should be carried out according to the local law or at least once per
year. Records of each evacuation drill must be maintained.

Chapter 2 version 3.0 0811 4(5)

 Hemtex Purchasing Instructions

8.4 First aid

At least one first-aid box should be available at each floor and in each factory. At least one
person in each department, covering all shifts, should be first aid trained.

A doctor or nurse should be available at short notice, in case of an accident in the factory.
Any costs for medical care that are followed by an injury in the factory, shall be paid by the
employer.

9. DORMITORIES

If a factory is providing housing facilities to their workers, the requirements regarding health
and safety under section 8, should also cover the housing area. The supplier shall ensure
reasonable privacy and cleanliness in the housing facilities.

All workers shall have their own individual bed and the living space shall be at least the
minimum legal requirement. The dormitories, toilets and showers shall be separated for men
and women.

There shall be no restrictions which interfere with the employee’s right to leave the housing
facility during his/her free time.

10. ENVIRONMENT

10.1 Pollution
The supplier shall meet all national applicable laws and regulations for air pollution, noise
pollution, water pollution and ground contamination. To ensure the compliance the supplier
must be inspected by the environmental authorities.

All factories with dyeing, printing and/ or other water processing sections shall have an ETP
(Effluent Treatment Plant). The ETP shall always be used when the production is running
and must be operated and maintained properly. The sludge from the ETP shall not be land-
filled or burned by the supplier and the storage of the sludge must be free of possible
leakage.

10.2 Chemical handling

The supplier shall have a list of all chemicals used in production. The list shall include the
name of the chemical product, the purpose of use and a reference to an MSDS (Material
Safety Data Sheet).

All chemical containers must be marked with chemical names and danger symbols. The
supplier must have a procedure for how the chemicals should be handled, stored and used.
The supplier shall give the employees who are handling chemicals, safety training and make
sure that they use proper PPE. The information regarding risk and safe handling of each
chemical shall be displayed in the storage areas and production areas. Health checks shall
be done regularly on all employees handling chemicals.

The supplier shall prevent the chemicals from leaking to the ground and water. The storage
of chemicals and hazardous waste must be free of possible leakage. The hazardous waste
shall be handled over to a licensed waste contractor. Hazardous waste shall not be land-
filled or burned by the supplier.

Chapter 2 version 3.0 0811 5(5)