California Transparency in Supply Chains Act Disclosure Statement

Southeastern Mills is committed to corporate social responsibility within its industry and the communities in which it operates. This undertaking involves conducting its business in a lawful and ethical manner, including complying with laws involving the trafficking and enslavement of any person. We expect our vendors and suppliers to adhere to this same commitment. Specifically, we have taken the following steps to eradicate slavery and human trafficking from our supply chain:

Verification of Product Supply Chains and Suppliers
Southeastern Mills establishes policies for its suppliers addressing the content of products supplied to the company and also expects its suppliers to obey the laws that require them to treat workers fairly and provide a safe and healthy work environment. To that end, the company seeks to verify each supplier’s compliance with our sourcing requirements and to ensure that they manufacture products in accordance with fair and reasonable labor and human relations practices and do not participate directly or indirectly in any form of slavery or human trafficking.

Supplier Audits
Southeastern Mills monitors and reviews all suppliers on a regular basis and reserves the right to verify our supplier’s compliance with our standards and policies through periodic audits of our suppliers’ facilities and operations. Southeastern also reserves the right to demand corrective measures from our suppliers when necessary and to terminate any supplier who does not comply with our standards and expectations.

Certification Requirements
Southeastern Mills will make good faith efforts to require all its direct suppliers to certify that all materials incorporated into the products supplied to us comply with the laws regarding slavery and human trafficking of the country or countries in which they are doing business and will routinely audit suppliers to verify this compliance.

Internal Accountability
Southeastern Mills believes that people, not buildings or equipment, determine whether an organization will succeed and foster an environment of exceptional performance. Since the company’s founding, our business practices have been governed by integrity, honesty, fair dealing, and full compliance with applicable laws. We require all Southeastern Mills employees to comply with these standards, including our non-harrassment and anti-discrimination polices. Suppliers, contractors, and service providers as well are expected to act ethically and abide by comparable standards andpolicies. As with any alleged violation of company standards or polices, Southeastern Mills will investigate the issue and take appropriate action, including termination of employees and termination of agreements with suppliers.

Training
Southeastern Mills provides specific training for our employees responsible for supply chain management, and this training includes instruction regarding compliance with laws involving slavery and human trafficking.