bli-standards for suppliers 10-22-03.PDF

BIG LOTS’ STANDARDS FOR SUPPLIERS

Big Lots Stores, Inc. (“Big Lots”) has a long-standing commitment to Uncompromising

Integrity. We stay true to what we believe by acting with honesty, promoting

responsibility and treating each other, our customers, our shareholders, our vendors,

our competitors and our communities with respect and dignity. Upholding this

commitment is crucial for Big Lots’ continued growth and success.

Since Big Lots believes that the conduct of its suppliers can be attributed to Big Lots

and affect its reputation, Big Lots requires its suppliers, their contractors and their

subcontractors to conform to the standards for suppliers (the “Standards”) described

below.

Big Lots recognizes that these Standards cannot guarantee ethical behavior or best

business practices. Nevertheless, adhering to these Standards is imperative.

Accordingly, Big Lots requires conformity from its suppliers with the following Standards,

and hereby reserves the right to make periodic, unannounced inspections of supplier’s

facilities to satisfy itself of supplier’s compliance with these Standards:

1. COMPLIANCE WITH APPLICABLE LAWS

All suppliers shall comply with the legal requirements and standards of their industry

under the local and national laws of the jurisdictions in which the suppliers are doing

business, including the labor and employment laws of those jurisdictions, and any

applicable U.S. laws. Should the legal requirements and standards of the industry

conflict, suppliers must be in compliance with the legal requirements of the

jurisdiction in which the products are manufactured.

2. EMPLOYMENT

Big Lots expects its suppliers to meet the following terms and conditions of

employment:

A. Compensation

Suppliers shall fairly compensate their employees by providing wages and

benefits, which are in compliance with the local and national laws of the

jurisdictions in which the suppliers are doing business or which are consistent

with the prevailing local standards in the jurisdictions in which the suppliers are

doing business, if the prevailing local standards are higher.

B. Hours of Labor

Suppliers shall maintain reasonable employee work hours in compliance with

local standards and applicable laws of the jurisdictions in which the suppliers are

doing business. Employees shall not work more than 72 hours per 6 days or

work more than a maximum total working hours of 14 hours per calendar day

(midnight to midnight). Suppliers should strive to have a 60-hour work week. Big

Lots will not use suppliers who, on a regularly scheduled basis, require

employees to work in excess of the statutory requirements without proper

compensation as required by applicable law. Employees should be permitted

reasonable days off (at least one day off for every seven-day period) and leave

privileges.

C. Child Labor

Big Lots will not tolerate the use of child labor. Big Lots will not accept products

from suppliers who utilize in any manner child labor in the manufacture of its

products. No person shall be employed at an age younger than the law of the

jurisdiction of manufacture allows. Where country laws allow children below the

age of 14 years to work, Big Lots will only recognize the minimum working age of

14 years, regardless of the law of the jurisdiction.

D. Forced Labor/Prison Labor

Forced or prison labor will not be tolerated by Big Lots. Suppliers shall maintain

employment on a voluntary basis. Big Lots will not accept products from

suppliers who utilize in any manner forced labor or prison labor in the

manufacture of its products.

E. Discrimination/Human Rights

Big Lots recognizes that cultural difference exist and different standards apply in

various jurisdictions, however, we believe that all terms and conditions of

employment should be based on an individual’s ability to do the job, not on the

basis of personal characteristics or beliefs. Big Lots favors suppliers who have a

social and political commitment to basic principles of human rights and who do

not discriminate against their employees in hiring practices or any other term or

condition of work, on the basis of race, color, national origin, gender, sexual

orientation, religion, disability, or other similar factors.

3. WORKPLACE ENVIRONMENT

Big Lots expects its suppliers to maintain a safe, clean, healthy and productive

environment for its employees. Factories producing merchandise to be sold by Big

Lots shall provide adequate medical facilities, fire exits and safety equipment, well-

lighted and comfortable workstations, clean restrooms, and adequate living quarters

where necessary. Workers should be properly trained to perform their jobs safely.

Big Lots will not do business with any supplier that provides an unhealthy or

hazardous work environment or which utilizes mental or physical disciplinary

practices.

4. RIGHT OF INSPECTION

Big Lots wants to make sure that the standards for suppliers are applied in the

places where production occurs. Big Lots, or a designated third party, will take

actions such as on-site inspection of production facilities to implement and monitor

these standards. Suppliers are required to disclose to Big Lots the locations of

factories where Big Lots merchandise is being produced in order that Big Lots, or a

designated third party, may inspect the factories to ensure good practices and

adherence to our standards.

5. CONFIDENTIALITY

Supplier shall not at any time, during or after the term of this Agreement, disclose to

others and will not take or use for its own purposes or the purpose of others any

trade secrets, confidential information, knowledge, designs, data, know-how, or any

other information reasonably considered by Big Lots to be “confidential.” Supplier

recognizes that this obligation applies not only to technical information, designs and

marketing, but also to any business information that Big Lots treats as confidential.

Any information that is not readily available to the public shall be considered to be a

trade secret and confidential.

As an officer of , a supplier of Big Lots, I have read the

principles and terms described in this document and understand my company’s

business relationship with Big Lots is based upon said company being in full compliance

with these principles and terms. I further understand that failure to abide by any of the

terms and conditions stated herein may result in the immediate cancellation by Big Lots

of all outstanding orders and refusal by Big Lots to continue to do business in any

manner with my company. I am signing this statement, as a corporate representative of

, to acknowledge, accept and agree to abide by the

standards, terms and conditions set forth in this Standard for Suppliers between my

company and Big Lots. I hereby affirm that all actions, legal and corporate, to make this

Agreement binding and enforceable have been completed.

SUPPLIER COMPANY NAME:

ADDRESS:

TELEPHONE:

FAX:

Signature:

Typed

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