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Executive Summary

Family owned and operated since 2003, ����ֱ��. believes in conducting business in a manner that is ethical, and environmentally and socially responsible. You can be confident that we are committed to promoting higher standards both within our business and within our industry.

Overall, we believe that there is increased awareness among employees and customers of the reputational and financial risks associated with Corporate Social Responsibility (CSR) and environmental sustainability practices.

The aim of documenting and communicating our work is to show our commitment to these efforts and support increased dialogue among our employees, customers and stakeholders. Our policies and procedures run throughout all that we do and across all departments within our company. We have categorized each activity as Responsible Sourcing, Product Safety, Environmental Stewardship and Community Development.

����ֱ��. is committed to ensuring production of our products meets legal and ethical standards. ����ֱ��. sets strong benchmarks through its Global Operating Principles, and proactively monitors suppliers for compliance. Our suppliers and brands are affiliated members of the Fair Labor Association (FLA), a collaborative effort of socially responsible companies, colleges and universities, and civil society organizations to improve working conditions in factories around the world.

����ֱ��. works within the guidelines of the Consumer Product Safety Improvement Act, including sharing of General Conformity Certificates for all products imported to the U.S. by our suppliers. In addition to adherence to our own Restricted Substances List, we maintain a Restricted Substances List similar to that developed by the American Apparel and Footwear Association (AAFA) and all ����ֱ��. apparel products meet all applicable U.S. legal requirements.

����ֱ��. has many successful initiatives aimed at minimizing our impact on the environment. These include programs to reduce our carbon footprint, conserve paper, packaging, and energy, and promote recycling. For instance, our on-demand manufacturing model drastically reduces our waste in comparison to our industry peers, as we only manufacturer items that have already been ordered by our customers. We are also an industry leader in digital manufacturing, eliminating the introduction of ink solvents and coloring agents into the environment, which are used in traditional printing processes, resulting in an eco-friendly manufacturing process.

����ֱ��. feels strongly about investing and participating in community events and programs, especially those in communities where our employees and customers live. Among other initiatives, we routinely hold and support charitable events within our facilities. A Customer Merchandise Donation Fund also supports our customers and their charitable efforts.

Responsible Sourcing

We have always believed in purchasing our products from long-term, reliable and responsible suppliers. As our business and supply chain have grown, we have taken great care to ensure that these suppliers share our standards and operate in a legal and responsible manner. By making social responsibility fundamental to our sourcing decisions, we ensure our suppliers take our Global Operating Principles as seriously as we do. We currently source from approximately five (5) U.S suppliers that have factories in over ten (10) countries around the world, including Bangladesh, Cambodia, China, El Salvador, Haiti, Honduras, India, Sri Lanka, Tanzania, the Dominican Republic and Vietnam. While there are a number of challenging issues we face when sourcing across such a global supply chain, Wwe believe that by carefully selecting our sourcing partners, monitoring conditions, and and engaging global and regional stakeholders, our suppliers can improve conditions impacting the lives of thousands of workers.

Monitoring and Compliance
����ֱ��. and our suppliers continually monitor and audit factories manufacturing our products to ensure they remain in compliance with legal requirements and standards outlined in our Global Operating Principles (GOP). We audit all suppliers’ annual reports in regards to producing the goods we sell, regardless of size or the volume of our business.

All audit findings are reviewed with the supplier’s management. In the event that findings are unsatisfactory, the supplier will be provided with a required corrective action plan that must be completed within 30 to 90 days. Depending on the nature and severity of the violations, we then perform remediation audits to confirm that appropriate steps have been taken to correct issues of noncompliance. If ����ֱ��. is unsatisfied with the remediation or with a supplier’s commitment to operating to the standards of our GOP, all business with that supplier will be terminated.

Dealing with Complex Issues
Our past work focused on establishing and communicating strong Global Operating Principles and conducting audits to enforce compliance. While these are critical aspects of our monitoring program, we increasingly work on getting to the root of the problems and designing activities to address these.

For instance, we encourage our suppliers to set goals to establish grievance mechanisms, especially in China where a number of high-profile worker incidents at other companies have recently occurred. We also discuss production and planning issues with supplier’s management to minimize overtime and to ensure sufficient rest time is provided on a daily and weekly basis.

Overall, we are confident that we have a well-designed compliance program that protects our brands, partners, meets and exceeds industry standards, and faces up to the challenges involved in working with factories and workers across our supply chain.

Our Work with the Fair Labor Association
����ֱ��. is a Category C member of the Fair Labor Association (FLA), and we are proud to work with this unique organization that brings together multiple stakeholders, to improve the lives of thousands of workers around the globe. We are one of the only retail companies in the industry to align ourselves with this initiative.

The FLA requires us to establish internal systems to monitor workplace conditions. The FLA staff routinely reviews our progress and provides us with valuable guidance and advice during meetings with our staff at our offices and at FLA meetings and training events in the United States and abroad. We also submit to a rigorous system of Independent External Monitoring (IEM) audits performed. These audits are unannounced to ����ֱ��. or our suppliers and the results are reported publicly providing a level of transparency and independence to our program that we feel is critical to our program’s overall success. For more information on the FLA, please visit .

Product Safety

����ֱ��. takes great care to ensure that the materials used to manufacture our products are safe and meet our standards and specifications. We understand that product safety is a high priority for our customers. That’s why we continually make significant and incremental investments in people and programs to ensure we meet legal requirements, as well as regularly checking on our suppliers.

Compliance with Product Safety Laws
The Consumer Product Safety Improvement Act (CPSIA) enhances current U.S. product safety laws and oversees hazardous substances and flammability requirements for general wear apparel. The law also requires the issuance of a General Conformity Certificate (GCC) for all products imported into the U.S. subject to safety regulations enforced by the Consumer Product Safety Commission.

We ensure that each applicable product we source from our suppliers is accompanied by a GCC and meets all testing requirements under the CPSIA. In keeping with our commitment to social responsibility, ����ֱ��. instituted a broad-level initiative to secure GCC certificate from all of our suppliers on items offered on our site.

Restricted Substances List
����ֱ��. has established a Restricted Substances List (RSL) to provide specific guidance to our suppliers in the production of our products. The list closely follows that of the American Apparel and Footwear Association and is based on the legal requirements, as well as any additional restrictions ����ֱ��. has deemed below our standards for health and safety.

Product Safety Testing
All our suppliers are required to work with the Consumer Product Safety Commission, and/or accredited test labs and global leaders in products testing to verify that manufacturers are producing goods that meet our high standards and those of the CPSIA and other applicable legal requirements.

California Proposition 65
Also known as the Safe Drinking Water and Toxic Enforcement Act of 1986, California Proposition 65 is a law that imposes requirements for goods made, distributed or sold in the state of California. It requires a warning on a product’s label or other labeling for products that may contain any of the 850+ chemicals on California’s Prop 65 list. A Proposition65 warning label does not mean a product is in violation of any product-safety standards or requirements.

Ensuring Responsible Sourcing & Product Safety
Our brands create quality, safe products in a socially responsible manner consistent with all federal laws and requirements including Consumer Product Safety Commission guidelines and the Consumer Product Safety Improvement Act.

We set high standards for quality and safety in our materials and craftsmanship and have rigorous testing programs to ensure it. We are proud to be a participating member of the Fair Labor Association and we are committed to sourcing our products in a socially responsible way.

Environmental Stewardship

We continue to be reminded of the direct link between climate change and cotton prices, not to mention polyester and other inputs that affect our prices. We are also keenly aware of the importance of environmental standards to many of our customers and we believe we can make a dramatic impact by making relatively small changes to our operations, many of which make smart business sense.

“In everything we do, we strive to reduce, reuse and recycle.”text in italic

Protecting Our Environment
����ֱ��. is committed to making quality products with minimal impact on the environment using as few resources as possible. We operate an on-demand manufacturingas a “small batch inventory” model and only create a product AFTER the customer has ordered and paid for it, thereby eliminatingreducing unsold inventory (waste) that requires transportation, storage space, packaging, HVAC, electricity, and human resources.

It is with this philosophy that we pride ourselves on creating high quality, customized sportswear in an efficient and consistent manner with minimal waste and environmental impact.

Some of our daily business practices include:

• We use limited packaging. We eliminated our interior packaging, reducing unnecessary waste.
• We recycle. Each year we recycle more than 2 tons of cardboard boxes. Earth-friendly inks. We use environmentally friendly inks for all our printing.
• We maximize printing. Our print jobs are ganged up for maximum efficiency and minimum waste.
• We use digital direct to garment printing techniques providing a “clean tech” solution instead ofto traditional printing processes that require human contact with toxic chemicals and a cleanup process that releases toxic chemicals into the environment.
• On-demand manufacturing modelSmall Batch inventory model. In order to reduce waste and limit our carbon impact on the environment we manufacture all products on-demand.utilize a small batch inventory process.
• We further reduce our carbon footprint by acting as both manufacturer and retailer for all orders, making our supply chain much more efficient than our industry competitors.
• The strategic location (Louisville, KY) of our fulfillment facilityies optimizes our supply chain and reduces direct to consumer shipping distances, reducing our carbon footprint.
• MADE IN USA. We have developed proprietary technology in order to automate our production processes in an attempt to reduce labor costs and provide higher paying, “clean manufacturing” jobs in the USA.

Community Development

Fundraising Programs
We recognize pay-to-play fees and cuts to athletic programs have made it difficult for many families to participate in youth sports. It is for this reason that ����ֱ��. created school partnership and fundraising programs that enable schools and youth sports teams to generate additional revenue sources. ����ֱ�� and youth sports teams that sign up for the partnership and/or fundraising program receive a portion of every sale generated from links to their school or team store. In 20171, we launched a new youth sports platform in partnership with Little League Baseball, Russell Athletic, and New Era Caps to provide a custom online fundraising store for every Little League program in the United States.provided over $74,000 back to schools and teams to use for their athletic programs.

Pat Downs Foundation
����ֱ��. is a charter sponsor of the Pat Downs Foundation, which provides scholarships for disadvantaged youth interested in playing baseball. The Pat Downs Foundation, named after the legendary Kirkland, WA youth baseball coach, was created by former players of his 1982 Kirkland National Little League World Series Championship team. The Pat Downs Foundation believes that every child should receive the opportunity to experience athletics and all that they offer. Athletics are great for life lessons and should be considered fun while remaining competitive. The goal is to provide for young athletes where the family is experiencing hard times and cannot afford the equipment, training, or fees that is needed for kids today to have a great experience in their chosen sport.

Learn more about the .

Clothing Donations
Over the past four years, we have donated over $500,000 worth of new, unused clothing and accessories to charitable organizations. As an ongoing community service, ����ֱ��. provides clothing to non-profit entities that have the ability to leverage our donation to assist people in need. We’re proud to work with organizations such as Society of St. Vincent de Paul of Seattle/King Co. and Cedar Lake of Louisville, KY.

Other Charitable Contributions
����ֱ��. contributes to several other charitable organizations that align with our mission. Some of these include: Kirkland Boys & Girls Club, Seattle Boys & Girls Club, Habitat for Humanity, Chris Elliott Fund, Susan G. Komen Foundation, St. Vincent de Paul, Wounded Warrior Project, Plymouth Housing Group, California All-Stars Elite Cheerleading, Northeast Seattle Little League, Magnolia Little League, Kirkland National Little League, and the University of Washington. In the years ahead, we will continue to support and collaborate with other charitable and community focused organizations.

Promoting a Healthy Work Environment
We promote a culture that recognizes the importance of a healthy work-life balance. Recognizing that happy and relaxed employees make better ambassadors for ����ֱ��., we encourage initiative and participation by creating a casual environment that inspires our employees to their fullest potential.

We are also proud of our strong commitment to providing our employees with a variety of in-depth training programs. Further, we support employee participation in volunteering events, such as park clean ups and non-profit meal services.