Plushly Supplier Code of Conduct

Plushly maintains a long-standing commitment to purchase products only from manufacturers who maintain the highest ethical labor standards for their employees. Plushly has created this Plushly Supplier Code of Conduct as a means of enforcing its commitment to purchase plush toys only from manufacturers who share its commitment to fair labor practices. By signing below, Suppliers signify that, as a condition of selling goods and services to Plushly, they agree to abide by the terms of our Plushly Supplier Code of Conduct.

I. Introduction: Plushly is committed to conducting its business affairs in a socially responsible manner. Plushly expects the same of its business partners. When appropriate, Plushly will seek to collaborate with Suppliers, agents, businesses, human rights, labor, and governmental organizations to demonstrate its commitment to socially responsible business practices by engaging in a periodic review of this Code to ensure that it is consistent with evolving business and social standards. Suppliers will be presented with and expected to agree to any future revisions of this Code as a condition of continuing to do business with Plushly.

II. Application: This Plushly Supplier Code of Conduct (the “Code”) establishes the minimum standards and requirements that apply to all Suppliers providing products and services to Plushly. Throughout this Code, use of the term “Supplier” refers to the manufacturer and “Suppliers” includes the manufacturer and any related parties such as its suppliers, subcontractors, third party contractors, facilities, sub-licensees, and any related entity (including officers, directors, partners, owners, and agents of such entities) who produce or sell products or materials incorporated in products sold to Plushly. “Suppliers” also refers to the party signing this Code of Conduct. Any use of "Company" signifies Plushly Customs LLC, also Doing Business As “Plushly”.

The Company and the Supplier are collectively referred to as the “Parties”.

III. Workplace Standards and Practices: All Suppliers’ workplace must adhere to the following minimum standards and practices.

1. Compliance with Laws and Regulations: Suppliers are required to abide by all applicable laws, codes, and regulations related to or involving the production or sale of products or materials to Plushly. Suppliers must comply with all applicable legal requirements of the jurisdictions in which goods or services are provided to Plushly, including, but not limited to, any national, provincial, municipal, and local laws of the People’s Republic of China, and industry standards.
2. Environmental Impact and Compliance: Suppliers must comply with all applicable environmental laws and regulations on waste management and pollution control of the jurisdictions in which goods or services are provided to Plushly. Suppliers are expected to have systems in place to ensure the safe handling, movement, storage, recycling, reuse, and management of waste, air emissions, and wastewater discharge. Any of these activities that have the potential to adversely impact human or environmental health should be appropriately managed, measured, controlled, and handled before the release of any substance into the environment. Suppliers must share Plushly's commitment to the protection and preservation of the global environment and the world's finite resources and conduct business accordingly.
3. Sustainability: Suppliers must ensure compliance with industry environmental, agricultural, and animal welfare laws, regulations, and standards as applicable. Suppliers are expected to develop appropriate environmental management systems that recognize the environmental impacts of their business processes and monitor and report performance with improvement targets.
4. Legal System: Products and materials shall not be manufactured or produced in any country where the local legal system would prevent Plushly, as determined in its sole discretion, from adequately protecting its name, trademarks, images, or other interests or from implementing any provision of this Code.
5. Political, Economic, and Social Environment: Products and materials shall not be manufactured or produced in any country where the political, social, or economic environment would threaten Plushly’s reputation and/or commercial or other interests, as determined by Plushly in its sole discretion.
6. Data Protection and Intellectual Property: Suppliers may use Plushly’s designs, data, and other intellectual property solely to fulfill Plushly’s orders. All materials remain the exclusive property of Plushly Customs LLC and must not be copied, shared, reproduced, modified, or used for any other purpose. Suppliers must protect Plushly’s confidential information by maintaining proper data security measures and ensure that Suppliers uphold the same confidentiality obligations. Suppliers may not disclose, share, or publicize their relationship with Plushly, or use Plushly’s name, logo, or designs for marketing or reference purposes without prior written consent.
7. Employment Standards
8. Compensation, Wages, and Benefits: Suppliers must contribute to all statutory social security, welfare funds, wages, and benefits in accordance with relevant employment laws and regulations. Suppliers must comply with all applicable wage and hour laws and regulations, including but not limited to those relating to minimum wages, overtime, maximum hours, commissions, bonuses, and other elements of compensation and provide legally mandated benefits.
9. Working Hours and Overtime: Suppliers must adhere to all applicable laws and regulations pertaining to working hours and overtime must be consensual. Suppliers shall guarantee that employees receive at least 24 consecutive hours of rest during each seven day period. If an applicable local law differs, Suppliers must follow the stricter requirement. Suppliers must provide fair compensation and benefits to all employees in accordance with applicable laws and regulations and overtime must be calculated at the legally required rate. Suppliers shall not schedule overtime on a regular basis in excess.
10. Child Labor: Suppliers are prohibited from using child labor. “Child” is defined as any person who is younger than 16 years of age, is within the compulsory age to be in school in the country where the work is to be performed, or under the minimum working age under applicable law. Plushly will not tolerate the use of unlawful child labor in the manufacture of products and will not accept products or services from Suppliers that employ or utilize child labor in any manner.
11. Involuntary Labor: Suppliers shall not use any form of forced, prison, indentured, or bonded labor. All workers shall be present on a voluntary basis, not at risk of physical harm, fairly compensated, and not exploited in any way. They shall not retain employees’ identification cards, passports, or work permits as a condition of employment.
12. Health & Safety: Suppliers must comply with all applicable laws and regulations on occupational health and safety and provide workers with a safe and healthy workplace. At a minimum, Suppliers must also ensure reasonable access to potable water, sanitary facilities, proper ventilation, adequate lighting, and fire safety. In addition, Suppliers are responsible for general emergency preparedness, machine maintenance, and evaluations in compliance with applicable safety standards. All relevant required permits, licenses, and registrations must be obtained, maintained and kept up-to-date and made available to Plushly upon reasonable request. If residential facilities are provided to workers, they must be safe and healthy facilities.
13. Non-discrimination: Suppliers must not discriminate with regard to hiring and employment practices, including salary, benefits, performance evaluation, promotion, discipline, termination, or retirement on the grounds of race, religion, age, nationality, social or ethnic origin, gender identity, sexual orientation, sex, disability, or other characteristics protected by law.
14. Harassment and Abuse: Suppliers must treat all workers with dignity and respect. Disrespectful, inappropriate behavior, unfair treatment, or retaliation of any kind will never be tolerated. Actions such as corporal punishment, threats of violence, and other forms of physical, sexual, psychological, verbal abuse, and harassment will never be tolerated.
15. Freedom of Association & Collective Bargaining: Suppliers recognize the employees’ right to freedom of association and collective bargaining, and shall not discriminate, retaliate, intimidate, or harass employees that peacefully exercise or express their right to join or refrain from such organization. Workers representatives shall not be hindered in carrying out their representative functions in the workplace.
16. Women’s Rights: Suppliers will ensure that women workers receive equal remuneration, benefits, treatment, evaluation of their work, and opportunity to fill all positions open to male workers. Pregnancy tests will not be demanded at any point of the hiring process and employment duration. Maternity leave will not be grounds for dismissal, loss of seniority, or deduction of wages, and the return to the same conditions must be ensured. Workers will not be exposed to hazards that may endanger reproductive health.
17. Disciplinary Practices: Suppliers will not use or tolerate corporal punishment or any other form of psychological or physical coercion.
18. Audit and Inspection: Suppliers should conduct audits and inspections to ensure their compliance with this Code and all applicable legal and contractual standards. In addition to any contractual rights of Plushly, any Suppliers’ failure to observe this Code may subject such Suppliers to disciplinary action, which could include termination of the Supplier-Company relationship. Plushly reserves the right, as a condition of continued approval, to conduct (or have its designee conduct) periodic, unannounced inspections of Suppliers’ facilities and business practices to verify compliance with these standards. The business relationship with Plushly is strengthened upon full and complete compliance with this Code and the Supplier’s agreements with Plushly. Any subcontractor retained by the Supplier must be in compliance with this Code and the Supplier is responsible for ensuring its subcontractor’s compliance.

IV. Verification:  It shall be the responsibility of Suppliers to ensure its compliance with this Code. Suppliers shall maintain on file such documentation as may be needed to demonstrate its compliance with this Code and shall make the documentation available for inspection upon request by Plushly.

V. Vendor Remediation: All products, in whole or in part, sold to Plushly must be manufactured in compliance with this Code of Conduct. If Plushly, in its sole discretion, determines that a product has been made in violation of this Code, then Plushly will consult with the Suppliers to examine the issue(s) and determine the appropriate measures to be taken. The remedy will include Suppliers taking steps necessary to correct such violations. If consultation and agreed upon measures fail to adequately resolve the violations within a specified time period, Plushly shall remove the non-complying product from Plushly’s inventory at the Suppliers’ sole expense, for full credit.

VI. Communication and Notification: Suppliers must ensure that the management staff of the Supplier has read and understood the requirements of this Code and effectively communicates the terms of this Code to its workers.

VII. Integration and Entire Agreement: This Code constitutes the full and complete understanding between the Parties and supersedes all prior agreements or representations. No amendment or modification to this Code shall be valid unless in writing and signed by both Parties. Electronic signatures and email confirmations are valid and binding. Compliance with this Code is mandatory and contractually binding. Failure to adhere may result in termination of the business relationship and refund for any orders completed in non-compliance with this Code.

Thank you for helping Plushly maintain the highest ethical standards and promoting a fair and competitive work environment.

I have read, understand and AGREE to follow the Plushly Supplier Code of Conduct. The Parties hereto have executed this Code as of the date first above written: