CALIFORNIA TRANSPARENCY IN SUPPLY CHAINS ACT

The California Transparency in Supply Chains Act of 2010 was enacted to increase the amount of information made available by manufacturers and retailers regarding their efforts to address the issue of slavery and human trafficking, thereby allowing consumers to make better, more informed choices regarding the products they buy and the companies they choose to support.

Lexington Home Brands is committed to conducting business in a lawful and ethical manner and it is the Company’s expectation that suppliers conduct themselves in the same manner.

Lexington Home Brands manufactures and assembles a significant portion of its product offering in its U.S. facilities. These facilities, together with the Company’s distribution centers and showrooms, are under the Company’s direct control and do not use forced or involuntary labor and do not engage in slavery or human trafficking. Further, the Company will not knowingly conduct business with any organization or individual that is found to engage in such practices.

While a third party has not been utilized, Lexington Home Brands has performed internal risk assessments of its suppliers, both in person and via questionnaire. These risk assessments are designed to verify each supplier’s efforts relative to eradicating slavery and human trafficking. The Company intends to continue this practice. Lexington Home Brands employees work closely with suppliers to ensure compliance with the Company’s quality and ethical standards, including periodic discussions on compliance.

Lexington Home Brands has conducted formalized training on this issue with all employees who interact with Company suppliers in an effort to confirm compliance and continuity with the Company’s stated position.