SUPPLY CHAIN SOCIAL ACCOUNTABILITY POLICY

ShopKo Stores Operating Co., LLC (“Shopko”) has a zero-tolerance policy for forced labor and child labor and is committed to promote honest and ethical conduct among all its employees and vendors on all areas of ethical risk to help to reserve the culture of honesty and accountability of Shopko.

To ensure such standards are met:

• Any vendor that produces or manufactures goods for Shopko shall comply with all applicable laws, rules and regulations of the United States and any other country in which vendor is doing business. Shopko has adopted a Business Code of Conduct which identifies Shopko’s expectations regarding vendor compliance with wages, child labor, forced labor, disciplinary practices, discrimination, safety and health issues, product safety, general business ethics and more. Shopko’s vendors must ensure all factories involved in the manufacturing of goods fully understand, and agree to comply with Shopko’s Social Compliance Standards and all local laws.

• All of Company’s vendors acknowledge and agree to comply with these policies and procedures. Shopko will promptly investigate any reports alleging forced labor in the supply chain, and takes swift and decisive action against any vendor that is found to act improperly in this regard.

• To ensure compliance with our policies and procedures, third party inspections of factories engaged in the production of Shopko’s private label merchandise are made routinely and willful noncompliance with the polices and procedures will result in termination of business partnership.

• Compliance training is provided to all Shopko employees responsible for supply chain management on how to identify and respond to supply chain issues, such as forced labor or child labor. In addition, vendor must provide training and assistance to factory in implementation of preventative and corrective actions.

For more information regarding Shopko’s policies and procedures please contact the Social Compliance Department at 920-429-7496.