SEARS HOLDINGS
Date:4/16/2014
To: G&W Industries
Attn: [[Primary Contact First Name]] Williams
Re: Results of the Preapproval audit at the Zhejiang Zhuji Horizon Clothing Industrial Co Ltd factory
NEEDS IMPROVEMENT / Production Permitted
In accordance with the Universal Terms and Conditions for Sears Roebuck and Co., Sears Canada, Inc. and Kmart Corporation, or the Lands' End Terms and Conditions for Purchase Orders signed by G&W Industries, all vendors and factories are required to comply with the business and labor requirements outlined in the Sears Holdings Code of Vendor Conduct.

On 4/15/2014 an auditor representing Sears Holdings conducted a Preapproval audit at the Zhejiang Zhuji Horizon Clothing Industrial Co Ltd factory to assess the compliance levels relative to the Sears Holdings Code of Vendor Conduct and local law on such important issues as child labor, wages, benefits, working hours, harassment, environmental, health and safety, and factory security. The evaluation included a review of factory payroll and personnel records, a factory walk-through, and interviews with management and select employees. 

Based on this evaluation, the overall compliance assessment for this facility is Needs Improvement. However, Sears Holdings will permit the factory to produce merchandise for Sears, Sears Canada, Kmart, or Lands' End for the next 6 months. Please keep in mind that the factory must reach an Acceptable level of compliance within 6 months to continue production for Sears Holdings.

ACTION REQUIRED

• Click here to view the specific audit findings that were shared with the factory at the end of the audit.
• Once you review the Audit Results, please follow the instructions for documenting the specific steps that the factory will take to remedy each violation, and submit the Corrective Action Plan to Sears Holdings within 10 days.
• Contact laborc@searshc.com if you need assistance.

An auditor representing Sears Holdings will conduct a follow-up audit of this factory at your expense in 6 months to ensure the violations cited in this audit have been addressed. If these issues have not been corrected, or if the factory fails to coorperate with the follow-up audit, Sears Holdings may not permit the Zhejiang Zhuji Horizon Clothing Industrial Co Ltd factory to be used in the production of Sears, Sears Canada, Kmart, or Lands' End merchandise.

Thank you for your cooperation. If you have any further questions regarding this audit, or our compliance requirements, please contact me.

Sincerely,
Joseph Wong
Compliance Manager
joseph.wong@searshc.com
852-28233183