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California Transparency in Supply Chains Act

Revised December 04, 2015

At Taylor Guitars, we believe we have a responsibility to source our materials in a legal, ethical and sustainable manner.  As part of the Company’s commitment to supply chain transparency, and in compliance with the California Transparency in Supply Chains Act, we make available our efforts to prevent and address human trafficking in our supply chain.  The California Transparency in Supply Chains Act, enacted in 2009, requires major California companies to disclose such steps. As part of Taylor Guitars total effort to provide transparency in supply chain and maintain a transparent chain of custody, the Company conducts the following:

VERIFICATION

It is our practice to engage in verification of our direct materials supply chain for our key products to evaluate risks of human trafficking and slavery in countries we have identified as high risk.  We reserve the right to and occasionally utilize third parties and supplier compliance statements for verification purposes.  Taylor Guitars does not currently visit every supplier in the supply chain for every product purchased.   Taylor Guitars will conduct on-site visits to verify compliance as risk and business needs are determined.

AUDITS and COMPLIANCE STANDARDS

We periodically repeat our on-site visits that include audits of our direct materials suppliers to evaluate compliance with Company and country standards. It is our practice to require direct suppliers to comply with the laws of the country or countries in which they are doing business. We use internal methods that may include site visits, business references, or supplier documentation to determine supplier risk in relation to illegal activities, including human trafficking and slavery.  At our discretion, Taylor Guitars conducts on site visits to materials suppliers worldwide, with or without notice. Taylor Guitars would terminate a vendor found to violate slavery and trafficking laws. Employees and contractors would be reprimanded, up to an including termination, if found to violate Company standards.

TRAINING

Taylor Guitars staff that carry out the verification actions regularly discuss mitigating risks and best practices in due diligence covering illegal activities.