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Policies and Statements

PROP 65

Proposition 65, also known as the Safe Drinking Water and Toxic Enforcement Act of 1986 was enacted as a California ballot initiative in November 1986. The Proposition was intended by its authors to protect California citizens and the State’s drinking water sources from chemicals determined by a state agency to cause cancer, birth defects or other reproductive harm. Over 900 chemicals are now on California’s list of Proposition 65 chemicals. Prop 65 requires that a “clear and reasonable warning” be provided by a Company in the course of doing business, who manufactures, assembles, handles, distributes, stores, sells, or transfers a consumer product which he or she knows to contain a chemical known to the state to cause cancer or reproductive toxicity to any person to whom the product is sold or transferred. Artist Merchants® is committed to providing compliant, safe products for our customers. To that end we continually work with our vendors and supply chain partners to implement a process that insures the purchase and use of our products will meet Proposition 65 standards. Because we cannot test every piece of every order that we ship to California for every one of the Prop 65 listed 900 plus chemicals, you may continue to have concerns about compliance with Prop 65. If so, the safest option is to include a label on product that may ship to the state of California. The label would read as follows: WARNING: Cancer and Reproductive Harm.

CODE OF CONDUCT

Artist Merchants® Commitment to Ethical and Responsible Conduct. Artist Merchants® believes we must not only meet the expectations of our customers and consumers, we must exceed those expectations. To that end, we have adopted standards for the safety, quality and integrity of our products and processes and we are committed to respecting the rights of individuals and protecting the environment. We are dedicated to complying with all applicable laws and to conduct business in an ethical and responsible manner.

Product Safety

We will comply with all applicable laws and regulations regarding safety of products we sell. We will meet applicable recognized voluntary standards for our products and processes.

No Abuse of Labor

We will not use any form of forced labor, including indentured, prison, bonded or slave labor. We will not use physical or verbal harassment to discipline employees.

No Child Labor

We will not use child labor. We will comply with all minimum age provisions of applicable laws and regulations.

Freedom of Association

We respect the rights of employees to associate or organize, or join a union without fear of reprisal or interference. If employees are represented by a union recognized under law, we respect the right to bargain collectively.

No Discrimination

We will not discriminate in hiring and employment practices on the basis of age, nationality, race, religion, social or ethnic orientation, gender or disability.

Hours and Wages

We will comply with all applicable wage, work hours, benefits, and overtime laws and regulations. If local industry standards are higher than applicable laws and regulations, we will meet higher standards.

Workplace Conditions

We will provide a safe, healthy and secure workplace. We will abide by all applicable laws and regulations for safety and health. Proper sanitation, lighting, ventilations and fire safety protection will be provided.

Environment

We abide by all applicable environmental laws and regulations. We will manage our environmental footprint to minimize the adverse impact on the environment. We will manage our energy, water and waste systems for maximum efficiency and minimal adverse impact on the environment.

Absence of Applicable Laws and Regulations

In the absence of law in a particular location relating to product safety, labor, employment, environment or working conditions, the spirit and intent of these policies shall be met.

Subcontractors and Sources

We require all businesses that support our business as subcontractors, manufacturers or sources of goods to comply with all of the same policies stated in our Commitment to Ethical and Responsible Conduct Policy. All subcontractors and suppliers are required to comply with all applicable and national laws. We expect those businesses to develop and implement internal business procedures to ensure compliance with our policy. We routinely monitor and assess compliance.

CONFLICT MINERALS STATEMENT

With the passage in 2010 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, publicly traded companies must determine whether certain minerals that are necessary to the functionality or production of their products originated in the Democratic Republic of the Congo or any adjoining African country. The legislation further requires these companies whose products contain metals derived from tantalum, tin, tungsten and gold to report annually to the U.S. Securities and Exchange Commission (SEC) disclosing whether those minerals originated in the African countries. If so, then the company must disclose to the SEC measures they took to exercise due diligence on the source and chain of custody of the minerals. It is our understanding that this legislation is not a call for a boycott or ban on the use of minerals from Congo but a means to demand greater transparency in the supply chain and a call for companies to undertake the due diligence required to ensure they are not contributing to the conflict. Artist Merchants®, as a private company is not subject to the requirements of this Act. We support the legislation’s efforts to reduce the resources and supply chains to the armed groups and military units bringing violence and undue suffering against the people of the Congo, and we take every step at our disposal to ensure that our products are manufactured in a legal, responsible manner. We are unaware of any of our products having its mineral source from that region but we cannot with certainty say where the raw minerals might originate from. While we acknowledge that many customers or their end users may be public companies, subject to the disclosure requirements of this Act, we are not able to determine the original source of minerals that might be used in the manufacture of our products.

CPSIA STATEMENT

The Consumer Product Safety Improvement Act (CPSIA) was passed by the US Congress on August 14, 2008. This law expands current Consumer Product Safety Committee authority and creates new responsibilities for those who make, distribute and sell consumer products. This new law also created new regulations for “Children’s products”. Among the provisions of the CPSIA was a change in the acceptable levels of Lead (Pb) in Paint and surface coatings for all consumer products – the standard was lowered to less than 90ppm of Lead effective August 2009. Artist Merchants® products with painted surfaces are and will continue to be compliant with the applicable rules. The bulk of this statue referred to ‘children’s product’ meaning a consumer product designed or intended primarily for children 12 years of age or younger. While all items featured in any of Artist Merchants® catalogs are designed to meet applicable Federal regulations, they are not designed for, or intended for use by children under the age of 12.

INK COMPLIANCE STATEMENT

In August 2008, the US Congress passed the Consumer Product Safety Improvement Act of 2008 (CPSIA). The CPSIA has multiple provisions, which were scheduled to take effect over a three-year period. Among the provisions of the CPSIA was a change in the acceptable levels of Lead in Paint and surface coatings for all consumer products. The original standard of less than 600ppm was lowered to less than 90ppm effective August 2009. Artist Merchants® products with painted surfaces are in compliance with the applicable rules. We have worked with our supply chain partners to develop design specifications which clearly define our products in order to meet both the needs of our customers and the regulatory requirements of the markets we serve. Those specifications are reviewed and revised as necessary. We take all necessary steps to ensure that our products meet Federal product regulations and require our suppliers to obtain required permits and / or approvals from appropriate US Federal agencies.

Artist Merchants® DATA PRIVACY POLICY

This policy explains how The Magnet Group collects, processes and handles personally identifiable information that we obtain through our website, email, orders or other digital means.

Information We Collect

Being in the Advertising Specialties Industry, Artist Merchants® collects information for two distinct types of business relationships:

1) Our customers, known in the industry as Distributors

2) Our customer’s customers, known in the industry as End Users

For distributors, we collect information from our website, new distributor lists supplied by industry service organizations such as ASI and SAGE, employee lists from our Distributors and information we gather to process orders for distributors. Basic company information is stored for each distributor including company name, address, city, state, postal code, phone numbers and website URL. Basic contact information is also stored for the representatives of those distributors including name, address, city, state, postal code, phone numbers and email addresses.

Our Commitment to Data Security

Artist Merchants® utilizes multiple security measures to ensure the safety of your personal data and to

protect that data from loss or unauthorized access, including but not limited to:

• Strong passwords for company personnel that expire on a periodic basis

• Regularly updated enterprise grade malware and spyware detection

• Email filtering mechanisms to block malicious emails from entering our network

• Inbound and outbound internet traffic filtering

Distributor Information We Disclose to Third Parties

Artist Merchants® does not sell or disclose distributor information to third parties. For purposes of email marketing we upload distributor information to a third-party email marketing organization for the express purpose of sending marketing emails. Distributors can elect to opt out of marketing emails via a link at the bottom of the email body.

End User Information We Disclose to Third Parties

The Magnet Group does not sell or disclose end user information to third parties. For purposes of shipping orders on behalf of our distributors, we provide customer name and address information to shipping providers such as UPS, FedEx, LTL and Freight carriers.

General Data Protection Regulation (GDPR)

The Magnet Group recognizes the recently adopted GDPR regulations for citizens of the European Union. If a distributor wishes to obtain a copy of their personal information, elect to opt out of marketing emails, request that their information be deleted or specify restrictions on what we do with their data, the distributor can send an email to dataprivacy@themagnetgroup.com with details about their request. Since Artist Merchants® has no communication with end users, we rely on distributors to relay requests from end users that are citizens of the European Union in regards to GDPR.

It’s important to note that modification, deletion or restriction of distributor or end user data can impact pending shipments and Artist Merchants® will advise when such a request is received.

Changes to This Policy

As data collection and processing requirements change from time to time, this policy is also subject to change.

PRODUCT SAFETY POLICY STATEMENT

Artist Merchants® is dedicated to providing its customers with safe products that exceed their expectations for quality and safety, designed to comply with all statutory and voluntary standards and regulations. We have assembled an executive level Product Safety and Compliance Team which is comprised of Senior Managers from Purchasing, Production, Operations, and Marketing that report directly to company Ownership and together have developed strict policies to deter, detect and prevent non-compliant product from shipping to a customer. The foundation of these policies is based upon open daily communication internally and with our sourcing partners throughout the supply chain.

Procedures have been established for product design and performance as well as raw material certification, regulatory requirements, traceability and the validation of communication leading up to the Design Approval Process. Additional procedures are in place for internal and external testing ending with manufacturer based and domestic inspections as well as a protocol for recall should the need arise. While it is important to note Artist Merchants® products are NOT intended for children under the age of 12, but for use by businesses and individuals as general use promotional items, we do certify that these products comply with all applicable Consumer Product Safety Improvement Act (CPSIA) safety rules, bans, standards and regulations.

ENVIRONMENTAL STATEMENT

Artist Merchants® seeks to establish and sustain a positive environmental legacy for Artist Merchants® and for future generations. In doing so, the company is committed to manufacturing products and conducting business in a socially responsible way. We look to minimize our overall impact on the environment and encourage our suppliers and associates to share our environmentally responsible behaviors.

Artist Merchants®
Compliance