NOT BASIC OPERATING STANDARDS

NOT BASIC and its network of companies fully or partially controlled by NOT BASIC (referred to herein as "NB" or the "company") is committed to certain values, and requires everyone involved in the production and distribution of NB goods to adhere to these commitments. NB does not own or operate any production facilities where goods are made, nor is it involved in employment or sourcing of fabrics in these factories. As such, it is crucial that suppliers take conscious responsibility for creating a safe and fair environment for their employees and protecting the environment. We require everyone in management at NB and those affiliated with NB, including suppliers and contractors, to comply with these Operating Guidelines to ensure a safe, inclusive, and ethical workplace environment. All manufacturers and suppliers must sign an Operating Guidelines agreement (comprising Standards) as a condition of doing business with NB.

I. LABOR, HUMAN RIGHTS AND SAFETY

Employment Relationships: Suppliers must adhere to minimum wages, overtime compensation, and legally mandated benefits under national labour laws. They must also avoid recruiting workers through brokers and ensure that their wages cover basic needs and offer some discretionary income.

Working hours: Under the existing labor laws, the maximum working hours, inclusive of regular hours and overtime, must not exceed 48 hours a week for an adult employee. If an employee is required to work for more than 60 hours a week, the overtime labor must be compensated accordingly. Additionally, employees are entitled to a weekly rest period of at least one day in seven.

Health and safety: Suppliers must maintain a safe and healthy work environment for their employees. This includes providing safety equipment, protective gear, and appropriate health and safety measures as per relevant laws. Housing facilities for workers should meet basic sanitation and accommodation standards and be separate from living areas or workspaces. All necessary permits, licenses, and approvals required for compliance with applicable regulations must be obtained and kept current.

Fair wages and benefits- Suppliers in India must adhere to local wage regulations, ensure fair compensation according to applicable laws, and provide necessary benefits. Wages should be paid punctually, and a wage calculation must be provided for each pay period. Compensation should be sufficient to meet worker's basic needs as well as provide some discretionary income. If the compensation does not meet these standards, Suppliers are encouraged to work with relevant authorities to rectify the situation and guarantee worker's financial wellbeing.

No Child labor: Suppliers must not employ workers under the age of 14, and those between 14 and 18 must not be subject to night work or hazardous tasks.

Voluntary employment: Suppliers are prohibited from engaging in, or benefiting from, any form of forced, indentured, bonded, or compulsory labor. Suppliers must ensure that all employment is entered into voluntarily, through the free choice of the employee, without any undue influence, coercion or deception

No discrimination- Suppliers must take active measures to prevent discrimination in their employment practices, including during recruitment, selection, promotion, and termination of employees. They are prohibited from discriminating on the basis of gender, caste, race, religion, age, disability, sexual orientation, nationality, pregnancy, marital status, gender identity or expression, and other protected grounds under applicable Indian laws. Suppliers are expected to encourage diversity, equity, and inclusion, and ensure that employees are treated fairly and equally.

II. LEGAL AND ETHICAL STANDARDS

Bribery: Suppliers must, at all times, adhere to the highest standards of legal and ethical conduct. Bribery in any form is strictly prohibited, and suppliers must not offer any improper advantage to any person, including politicians or NB employees. Suppliers are expected to refrain from engaging in any action that could potentially give rise to a conflict of interest with the Company, or that could be perceived as creating such a conflict.

Subcontracting: NB understands and allows its suppliers to subcontract with other entities, provided that those entities adhere to the company's operating standards and comply with applicable laws and regulations. Suppliers are obligated to put subcontracting arrangements in writing and share the necessary details with NB via email.

Quality Control & Accountability:
i. Inspection: Prior to the dispatch of goods, the Supplier must provide NB with an opportunity to inspect the goods to ensure that they conform to the order specifications.
ii. Record Keeping: The Supplier must maintain accurate records of the production and shipping of goods, including any information related to defects or shortages.
iii. Responsibility for Defects: If any defects or shortcomings are identified during the inspection process, the responsibility for the entire

III. ENVIRONMENTAL RESPONSIBILITY

Environmental compliance- Suppliers must operate in accordance with applicable environmental laws and best practices. They must obtain and maintain current environmental licenses and permissions in regions of operation. Furthermore, suppliers are expected to conduct their operations in a manner that respects the environment and local communities, especially in addressing issues like deforestation, pollution, habitat loss, and rising greenhouse gas emissions.

Wastewater and Chemical Management: Suppliers are expected to minimize water waste and properly dispose of waste to prevent pollution. They should also abide by Indian laws and regulations that address waste management and water conservation. In order to ensure product safety, suppliers must adhere to product safety restrictions and prohibitions on hazardous substances according to their respective markets.

Energy efficiency- Suppliers must strive to use energy in the most efficient manner possible. This means that suppliers should prioritize the use of energy-efficient equipment and technology, improve insulation and heating systems, optimize production processes, and consider utilizing renewable energy sources whenever possible. The goal of this standard is to minimize energy waste, reduce supplier's reliance on non-renewable energy sources, and ultimately lower their CO2 emissions.