WRAP Worldwide Responsible Accredited Production ProgramWRAP Worldwide Responsible Accredited Production (WRAP) > WRAP isan independent, non-profit organization dedicated to the certification of facilities engaged in lawful, humane and ethical manufacturing and services throughout the world. > Founded in 2000, WRAP has become the world’s largest facility-based social and environmental compliance certification and training organization, with more than 1,700 facilities in over 60 countries participating in the Certification Program. “Participation in the WRAP certification program can enhance a facility's standing with customers and reduce duplicative compliance audits.”Overview of the WRAP Certification Process The WRAP certification process is a continuous cycle providing facilities the opportunity to demonstrate compliance with the WRAP Principles coy Step 4 Prater , ts " eae ome Bist ea ier eon Cary one Indepondent cee een Camere ea eae ae perc : pitt shy ey Fcamretton erent Fi rlWRAP 12 Principles Compliance with Laws and Workplace Regulations Facilites will comply with laws and regulations in all locations where they conduct business, Prohibition of Forced Labor Facilities will not use involuntary or forced labor. Prohibition of Child Labor Facilities will not hire any employee under the age of 14 or under the minimum age established by law for employment, whichever is greater, or any employee whose employment would interfere with compulsory schooling. Prohibition of Harassment or Abuse Facilities will provide a work environment free of supervisory or co-worker harassment or abuse, and free of corporal punishment in any form, Compensation and Benefits Facilities will pay at least the minimum total compensation required by local law, including all mandated wages, allowances & benefits. Hours of Work Hours worked each day, and days worked each week, shall not exceed the limitations of the country’s law. Facilities will provide at least one day off in every seven-day period, except as required to meet urgent business needs.WRAP 12 Principles Prohibition of Discrimination Facilities will employ, pay, promote, and terminate workers on the basis of their ability to do the job, rather than on the basis of personal characteristics or beliefs. Health and Safety Facilities will provide a safe and healthy work environment. Where residential housing is provided for workers, facilities will provide safe and healthy ‘housing. Freedom of Association and Collective Bargaining Facilities will recognize and respect the right of employees to exercise their lawful rights of free association and collective bargaining. Environment Facilities will comply with environmental rules, regulations and standards applicable to their operations, and will observe environmentally conscious practices in all locations where they operate. Customs Compliance Facilities will comply with applicable customs laws, and in particular, will establish and maintain programs to comply with customs laws regarding illegal transshipment of finished products. Security Facilities will maintain facility security procedures to guard against the introduction of non-manifested cargo into outbound shipments (i.e. drugs, explosives biohazards and /or other contraband).Levels of certification > In October 2006, WRAP announced the introduction of a new, three-level Sacility certification program. The purpose of this program is to award participating facilities with the appropriate level of recognition for their progress in achieving full compliance with the WRAP Production Principles over a period of time.“A” Level Certificate » Awarded to a facility that has demonstrated full compliance with all WRAP principles for three consecutive years, and has successfully “passed” each audit with no corrective actions. > Facilities that meet these criteria will be issued a two-year certificate. > The facility will be subject to an unannounced audit during its two-year certification > Facilities must maintain continuous certification to qualify for the “A” level certificate“B” Level Certificate » A one-year certificate is awarded to a facility that has demonstrated full compliance with all WRAP principles during the first audit, or in subsequent audits. » The one year certification begins from the date of issue of the certificate, not from the date of the audit. (The “B" level certification is equal to WRAP's current compliance certificate.)“C” Level Certificate » A six-month certificate will be issued to facilities that demonstrate substantial compliance with the WRAP principles, but have minor non- compliances in policies, procedures or training that need to be addressed. > Facilities may not have any “red flag" non compliances such as child labor, egregious health & safety or environmental issues, prison labor, forced labor or involuntary labor, or harassment or abuse of employees. > Facilities must demonstrate that employees are paid the legal minimum wage and any required overtime compensation.> The Facility Certification Recommendation is a required action performed by Bureau Veritas based on the successful compliance findings of the on-site evaluation at the participating facility. > Ifa facility is verified to be in compliance with the WRAP Principles, Bureau Veritas will issue a written Facility Certification Recommendation to WRAP. The recommendation will be reviewed with all other relevant findings to determine certification. > If the participating facility is found not to be in compliance, the accredited independent monitor will issue a Corrective Action Plan. > A Certification Recommendation can only be issued if and when a participating facility satisfies the compliance requirements as verified by an accredited independent monitor.WRAP Certification Validity > The terms of the certification are determined by the WRAP Certification Board based on established risk-based certification guidelines that include, but are not limited to, facility performance, the facility's commitment and compliance with the 12 WRAP Principles, the independent monitor's evaluation and recommendation, and the facility's track record with WRAP. > Based on the above factors, WRAP may grant a certification for six months, one year or two years. At the end of the Certification Period, the facility can apply for re-certification.