Fender supply chain transparency

CALIFORNIA TRANSPARENCY IN SUPPLY CHAINS ACT

Fender Musical Instruments Corporation, and all of its affiliates and subsidiaries (“Fender” or “us” or “we” or “Company”) who conduct business into and within California, recognize and support the California Transparency in Supply Chains Act (the "Act"). The Act, which took effect January 1, 2012, requires retailers and manufactures like Fender to make consumers aware of efforts to detect, and eradicate human slavery from their global supply chains.

As of January 1, 2012, Fender's actions in this area consist of the following:

All of Fender's direct suppliers have received a bulletin that not only summarizes the Act, but announces Fender's policy of enforcing and supporting the purpose of the Act. A copy of this bulletin may be obtained upon request through contact information below.

Standard purchase order (PO) terms require all direct suppliers to represent and warrant that products made for and on behalf of Fender, are in compliance with laws prohibiting forced, or child labor. The terms also include explicit references to California's Transparency in Supply Chains Act.

Senior supply chain managers in Fender have personally met with some of Fender's most critical OEM partners, to instill ongoing cooperation in Fender's commitment against unlawful labor in its supply chain. Master agreements with these critical OEMs contain (like Fender's standard PO terms) prohibitions against child or forced labor.

In territories around the world where Fender does not sell direct and instead relies upon third party distributors, written distributor agreements are used that contain specific provisions against the use of child labor or slavery.

Fender maintains internal accountability standards and procedures for employees failing to meet company standards regarding slavery and trafficking. Fender's Code of Conduct holds personnel accountable for ensuring compliance and ethical standards in Fender's international business.

Fender has, for years, maintained a compliance "hotline" that all personnel are instructed to use in the event violations of law or policies are suspected and/or detected.

Fender provides periodic training to impacted personnel on understanding, detecting, reporting and preventing unlawful labor issues in the supply chain. Relevant news stories are routinely tracked and distributed to impacted personnel to ensure the topic remains addressed in Fender's normal course of business.

At this time Fender does not conduct independent, unannounced inspections of third party facilities in its supply chain (in part due to challenges such as visa requirements in territories where Fender conducts business). However, for scheduled visits to OEM partner facilities in territories with such requirements, Fender now routinely includes unannounced agenda items dealing directly with human slavery detection and prevention. Going forward, Fender is actively seeking opportunities to incorporate independent, unannounced audits into its compliance plan.

Fender remains committed to building the world's best musical instruments and accessories, in a way that helps, not hurts the people and communities involved in its business. We welcome your input on this important issue. Written requests from consumers for a copy of this statement, or other information related to the above, may be obtained by emailing us. Responses will be given within 30 days of receiving such request.