Deckers Factory Charter

Deckers Outdoor Corporation and its group of footwear brands, Teva, Simple and UGG, select and rely upon our elite group of manufacturers by applying a set of rigorous manufacturing standards and moral practices.

We depend on each factory's adherence to and maintenance of these standards to ensure the consistently high quality of the branded products our factories produce. As such, we require that our manufacturers meet and maintain the following standards and practices:

Process Control – Deckers authorized Factories must be ISO 9001 certified, with annually updated certification and regular ISO auditing. This ensures Deckers suppliers have accurate process and audit control for all aspects of sampling, costing, purchasing raw materials, processing, manufacturing, and quality control of the footwear.

Contract - All factories must be signatories of, and be in compliance with the Deckers Contract, which lists in detail the specific guidelines for fulfilling orders for the footwear.

No Subcontracting - As Deckers relies on the integrity of each assigned supplier and its approved premises, Deckers specifies that strictly no sub-contracting is allowed. Additionally, it is required that assigned factories follow all production specifications and no material substitutions or variation from written product specification will be allowed.

Quality - It is Deckers' expectation that all factories seek to manufacture quality products and are aware that, as assigned suppliers of footwear product, are vitally involved in building Deckers Brands through the ultimate satisfaction of the end consumer. As such, it is expected that the factories have quality control systems of their own in place and are active participants and partners in any and all quality control processes Deckers or its employees may initiate. Our charter implies that all factory staff operate to these ends in good faith and therefore would not be involved in materials substitutions or deliberate mislabeling of “B” or “C” graded footwear.

Communication – Clear outcomes depend on clear communication. Deckers works with its authorized Factories with the expectation that all communication and directives from Deckers Staff be followed and acted upon in a timely manner. When there are production problems or complications, it is expected that the Factory convene problem solving meetings with all relevant parties and departments included and that each of these meetings conclude with a written, actionable plan of corrective policy. All such directives should be communicated promptly back to Deckers staff.

Well Trained Staff - In order to ensure the highest quality of consistent mass production, it is Deckers expectation that the Factory provide regular and consistent training to all its manufacturing staff, and that all staff are sufficiently trained to adequately perform the functions required on their station.

Housekeeping - Deckers expects the Factories' sample rooms, manufacturing facilities, and warehouses to be properly organized, clean, free of debris, and well maintained. It is also expected that there is sufficient lighting for operators to perform their tasks and that adequate safety measures, from accident and emergency plans to adequate ventilation, are provided to ensure the health and safety of its workers.

Security – As the integrity of the Footwear is of primary importance, it is required that the Factory have adequate inventory control systems and security in place in order to ensure that only “A” grade footwear is packed into containers; that, in compliance with US CT-PAT ( US Customs anti-terrorist scheme ) requirements, ONLY footwear is loaded on Deckers containers, and that there is no shrinkage or pilferage of the Footwear or Footwear Parts from the factories' production lines, warehouses, or other storage facilities.

Human Rights – It is Deckers' expectation, as indicated in the terms of the Contract, that its authorized factories comply with all local laws as regards minimum age, wage, overtime, and housing laws in respect to its employees, and under no circumstances hires, keeps, or sanctions child, prison or indentured labor of any kind.

In order that Deckers be assured continuing compliance with the charter items detailed above, Deckers will issue a quarterly assessment of the factories Sampling, Costing, Commercialization, Production, QC, and Warehouse departments. It is expected that Deckers authorized factories will use this report to monitor and improve its process, systems, and control to ensure that the footwear product provided is of the highest quality possible.

We appreciate your understanding of and compliance with this Charter and are pleased to have your factory on board as a designated Deckers supplier.