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Supply Chain Transparency Act

MARC JACOBS BEAUTY SUPPLY CHAIN TRANSPARENCY ACT

Kendo Holdings Inc., exclusive licensee of Marc Jacobs Beauty products, ("Kendo") is committed to conducting business in a legal, ethical and responsible manner. We expect our suppliers to respect and adhere to the same business philosophy in the operation of their businesses.

The California Transparency in Supply Chains Act of 2010 (SB-657) requires retail sellers and manufacturers doing business in California to disclose their efforts to eradicate slavery and human trafficking in their direct supply chain. To address the requirements of this Act, Kendo discloses the following:

Kendo shares with, and expects its direct product suppliers to adhere to and to implement, our Supplier’s Code of Conduct, which addresses working conditions for suppliers and specifically prohibits the use of involuntary or forced labor, human trafficking, child labor, and harassment and abuse.

Kendo has communicated and will continue to communicate the requirements of our Supplier’s Code of Conduct to its direct suppliers to ensure that materials incorporated into our products comply with all applicable laws regarding slavery and human trafficking.

We do not currently engage in audits of our suppliers in this respect. However, we will consider measures such as auditing or third party verification for any suppliers we determine to be in significant risk of violating our Supplier’s Code of Conduct. If we suspect a supplier is involved in these activities, we will conduct an inquiry. In the event that a potential violation of human rights is identified, Kendo will promptly address the issue with the supplier and set expectations for how the situation is to be addressed. If a non-compliance issue is not resolved in a timely manner, then Kendo will re-evaluate its business relationship with the supplier, up to and including termination of the business relationship.

Kendo maintains internal accountability standards and procedures for employees and contractors who fail to meet our standards, including but not limited to prohibitions against slavery and trafficking.

Kendo provides training to ensure that our employees with direct responsibility for product supply chain management are knowledgeable and aware of the issues and concerns surrounding the supply chain, including mitigating the risk of human trafficking and slavery.

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