HYBRID LIGHT, LC

MONITORING GUIDELINES

1. Establish Clear Standards

• Establish and articulate clear, written workplace Code of Conduct (standards)
• Convey Code of Conduct to factory
• Receive written notice every 6 months from factory that standards are being met
• Receive written notice every 6 months from factory that employees have been informed of standards
• Obtain agreement from factory to submit to and partake in periodic 3^rd party inspections/audits for compliance with standards
• Develop a questionnaire for factory to record compliance and auditors to use as a guideline for compliance and interviewing employees and managers

2. Create an Informed Workplace

• Ensure that all factory employees are informed about the workplace standards and standards are posted in a prominent place in language spoken by employees and managers. Ensure factory will periodically update and inform employees of standards.

3. Conduct Periodic Visits and Audits

• Have trained company monitors conduct periodic announced and unannounced visits to factory to assess compliance with Code of Conduct.

4. Provide Employees with Opportunity to Report noncompliance

• Develop a secure communications channel for employees to report to Company on non-compliance of standards with assurance they will not be punished or prejudiced for doing so

5. Establish Means of Remediation

• Work with factory to correct instances of non-compliance with standards and work to ensure they do not recur
• Conduct future business based on factory compliance with standards

6. Conduct Independent External 3^rd Party Audit to include:

• Confidential interview of factory workers
• Interview of factory management
• Conducting visual inspection of factory for cleanliness and safety concerns
• Report findings on non-compliance to Company
• Provide written report on findings and recommendations for improvement if any