Raymour & Flanigan's Policy Against Forced Labor

(with Requirements for Vendors)

Summary

Raymour & Flanigan ("Company") is committed to compliance with all applicable US import laws and regulations (collectively, “US Laws”), including the prohibition against importing goods produced or manufactured wholly or in part by convict, indentured, or forced labor, which includes forced or indentured child labor ("forced labor").

As an importer of merchandise into the United States, the Company is legally obligated to exercise reasonable care to ensure that its import transactions comply with all US Laws, including the prohibition against importing goods produced by forced labor. Any failure to exercise reasonable care or to comply with the forced labor import prohibition may result in US Customs and Border Protection's (CBP) detention or seizure of our merchandise. In addition to disrupting the Company’s business, this can harm the Company’s reputation, and potentially expose the Company to significant civil or criminal penalties. Compliance with the forced labor import prohibition is both an ethical imperative and a critical component of the Company’s reputation and success.

Statement of Policy

It is the Company’s policy (the “Policy”) (i) to strictly prohibit the use of forced labor in its international supply chain and (ii) to not enter a business relationship with any vendor that uses or is suspected of using any form of forced labor at any stage of the production process or at any point in its own supply chain. The Company shall endeavor to monitor the risk of labor abuses in its supply chain and undertake due diligence to ensure that its supply chain is free of forced labor and to ensure that all of its documentation related to the import of goods is accurate, complete and in compliance with US Laws and this Policy. If the Company suspects that a vendor or any of the vendor’s suppliers, subcontractors or other business partners is using forced labor, the Company will promptly investigate and cease doing business with the vendor if the Company concludes that forced labor is in fact being used.

Requirements and Agreement of Vendors

Each vendor selling merchandise to Company (each a “Seller”) shall be required to provide evidence that it is in compliance with US Laws and this Policy by providing documentation related to the merchandise being sold, including without limitation the vendor’s own written policy against forced labor, the vendor’s supply chain map for all merchandise (including all component parts thereof), and results of vendor’s own internal forced labor audits, in each case, to the extent sufficient to cause CBP to release any such shipment from detention should the same be detained If a buying agent or representative is satisfying the requirements of this Policy on behalf of a vendor, the buying agent must represent to Company that it has the authority to so act on behalf of vendor and that Company may rely on such representation. Any failure by vendor (or by any buying agent or representative on behalf of vendor) to comply with the terms of this Policy shall result in an invocation of the indemnification provisions provided in its vendor agreement with R&F.

Any shipment of merchandise by any Seller shall be deemed a certification by such Seller that it has obtained and will retain for a period of no less than two years from the date of such shipment, the Requirement Documentation demonstrating that no finished product or any component material included in such shipment was sourced (1) through any means in violation of any applicable law, including without limitation the Uyghur Forced Labor Prevention Act or any replacement or similar law or regulation (collectively, the “Forced Labor Laws”); (2) from any person or entity identified on any Forced Labor Law entity list; (3) from any person or entity located within the Xinjiang region or any other region identified by any Forced Labor Law from time to time as suspected or highly suspected for the use of any forced, child or indentured labor; or (4) through “forced” labor as that term is defined in 19 U.S.C. 1307.

In addition, by agreeing to be bound by the terms of Raymour & Flanigan’s Policy Against Forced Labor, each Seller hereby agrees to indemnify Raymour & Flanigan against all claims, demands, judgments, awards, fines, penalties, losses, damages, costs, suits and expenses arising from Seller’s non-compliance with this policy, including without limitation the cost of any investigation or all costs related to the shipment of goods (including without limitation the shipment back to the country of destination if mandated by a Forced Labor Law) where Seller is unable to provide such information or Required Documentation as is necessary or requested by any governmental authority to ensure compliance with a Forced Labor Law.