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California Transparency in Supply Chains Act of 2010

On September 30, 2010, California Senate Bill 657, also known as the California Transparency in Supply Chains Act of 2010 (the "Supply Chains Act"), was signed into law and codified in California Civil Code Section 1714.43 and California Revenue and Taxation Code Section 19547.5. The Supply Chains Act requires retailers and manufacturers conducting business in California, and conducting over $100 million in worldwide sales, to publicly disclose what efforts that have taken to eliminate slavery and human trafficking from their Supply and Distribution Chains. Pursuant to the requirements provided in the Supply Chains Act, Radio Systems Corporation ("Radio Systems") provides the following disclosures that discuss our efforts to combat slavery and human trafficking in our supply and distribution chains.

Verification. Radio Systems requires disclosures from all suppliers regarding Sustainability and Ethical Human Rights practices. Radio Systems performs due diligence to track the chain of custody for all its electronic products from their point of origin at the raw materials level of the supply chain through transfer and production to the end­ product stage.

Audits. Radio Systems conducts internal as well as independent external audits of its suppliers to evaluate compliance with company standards for Sustainability and Ethical Human Rights practices which occur at minimum on an annual basis.

Certify. Radio Systems requires all suppliers to certify on a regular basis that materials incorporated into its products comply with the laws regarding human trafficking and forced labor of the countries in which it does business.

Internal Accountability. Radio Systems maintains standards and procedures for employees, contractors, or suppliers who fail to meet company standards regarding Sustainability and Ethical Human Rights practices. Radio Systems' standards and procedures address labor standards to prohibit all forms of human trafficking and forced labor. These policies are implemented by Radio Systems' due diligence process.

Training. Radio Systems is working to train all responsible supply chain employees and management on human trafficking and slavery, with particular training in respect to mitigating risks within the supply chain.

In accordance with the Supply Chains Act, Radio Systems Corporation is dedicated to continuing the expansion of our standards and are taking various measures to better our policies, procedures, and regulations aimed at combatting slavery and human trafficking.

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