Vendor Code of Conduct

1. INTRODUCTION:
ENSY Group (“Ensy ”) is committed to conducting its business in an ethical and socially responsible manner and in compliance with applicable laws. ENSY Group seeks to only engage in business relationships with vendors who uphold compatible business standards.

This Code of Conduct sets the requirements that all vendors, distributors, agents, suppliers, representatives, and other business partners and their employees, directors, officers, agents, representatives, and subcontractors (collectively referred to as “Vendors”) must comply with to do business with. ENSY Group Vendor Code of Conduct (the “Vendor Code”) applies to companies, foreign or domestic, that supply goods and/or services to ENSY Group, as well as vendors, distributors, agents, suppliers, representatives, and other business partners and their employees, directors, officers, agents, representatives, and subcontractors (collectively referred to as “Vendors”) and is meant to ensure that Ensy's business partners have a clear understanding of Ensy's expectations concerning their business standards and practices.

It is the responsibility of vendors to ensure that their employees and suppliers do not violate the standards of the Vendor Code.

2. STANDARDS OF VENDOR ENGAGEMENT
Vendors are expected to meet the standards of their industry and comply with all laws and regulations that govern their activities in the country in which they operate. The Vendor Code sets out specific expectations regarding the quality and safety of the products sold to ENSY Group, vendor workplace standards, as well as vendor business and environmental practices. These expectations are consistent with Ensy's values, principles and policies regarding ethical business conduct and are used to assess new and existing vendors and their facilities. ENSY Group will not knowingly work with vendors who do not meet the standards outlined in the Vendor Code.

2.1 QUALITY AND SAFETY
ENSY Group expects its vendors to supply products and/or services that fully comply with Ensy’s specifications as well as with all applicable legal requirements and that, when used as intended, are safe. Vendors are expected to notify ENSY Group of any circumstances which could potentially affect the safety and/or quality of any given product or service, to cooperate fully with ENSY Group and to take all necessary steps to address any health, safety or regulatory issues associated with products and/or services provided.

2.2 VENDOR WORKPLACE STANDARDS
Safe and Healthy Environment - Vendors must provide their employees with a safe and healthy work environment that complies with local laws and regulations. The same applies to housing facilities, where applicable.

No Forced Labor – Employment must be voluntary and free from financial penalties or coercion. ENSY Group will not knowingly work with vendors that use any form of forced labour in the manufacturing of products or the provision of services.

No Child Labor – Vendors shall not employ workers under the minimum age for employment in the country of manufacture or, in the absence of a minimum age requirement, no younger than 16 years old.

Fair Disciplinary Practices – Workers must be treated with respect and dignity, and no worker may be subject to physical, verbal, sexual or psychological harassment or abuse.

No Discrimination - Cultural differences must be respected and workers are expected to be employed based on merit, performance and ability, and not based on personal characteristics or beliefs. ENSY Group encourages vendors to eliminate workplace discrimination with respect to hiring, salary, benefits, advancement, discipline or termination on the basis of gender, race, color, religious or personal beliefs, place of origin, sexual orientation, marital or family status, disability, political opinion, membership in any legal organization or other grounds of discrimination prohibited by law.

Reasonable Working Hours – Vendors should maintain reasonable working hours. Workers must not be required to work more than the legally prescribed limits, are expected to be appropriately compensated for overtime, and shall have at least one day off for every seven-day period.

Wages and Benefits – Vendors must, at a minimum, provide wages and benefits that comply with the laws of the country in which they operate.

Ensy is proud of its reputation and record for integrity and respect in dealing with our own employees and expects nothing less of our Suppliers in their dealings with their workforce. Suppliers must adopt and maintain terms of employment for their employees that comply with local law and requirements of decency. We are committed to ensuring that working conditions in our supply chain are safe, that workers are treated with respect and dignity, and that our processes are environmentally and socially responsible.

2.3 ENVIRONMENT
Ensy supports the important goals of sustainable development, environmental protection, and pollution prevention. We are committed to operating in a safe, responsible manner that respects the environment and the health of our employees, our customers, and the communities where we operate.

ENSY Group seeks to work with vendors who strive to use resources, materials and energy as efficiently and responsibly as possible and who work to minimize the adverse impact of their activities on the environment. At a minimum, vendors are required to operate in compliance with environmental laws. Suppliers shall comply with all of Ensy’s requirements, as well as applicable local, state and federal laws related to environmental and waste management. In addition, if a Supplier is aware of any condition that would put Ensy at risk of compliance with any environmental law, the Supplier is required to disclose the risk to the appropriate Ensy management.

2.4 CONFLICTS OF INTEREST
Vendors are reminded that ENSY Group employees owe exclusive business loyalty to ENSY Group and are bound by a Code of Conduct and Ethics which requires them to avoid placing themselves in a situation of conflict of interest, actual or apparent. Consequently, employees must not be put in a position where personal or financial incentives or interests may impair their judgment and ability to make sound and unbiased business decisions in the best interest of ENSY Group. We expect vendors who do business or seek to do business with ENSY Group to respect these ethical principles and to not offer business courtesies (such as gifts and entertainment) that exceed nominal value.

2.5 COMPLIANCE WITH ANTI-CORRUPTION LAWS
Vendors are reminded that ENSY Group employees owe exclusive business loyalty to ENSY Group and are bound by a Code of Conduct and Ethics which requires them to avoid placing themselves in a situation of conflict of interest, actual or apparent. Consequently, employees must not be put in a position where personal or financial incentives or interests may impair their judgment and ability to make sound and unbiased business decisions in the best interest of ENSY Group. We expect vendors who do business or seek to do business with ENSY Group to respect these ethical principles and to not offer business courtesies (such as gifts and entertainment) that exceed nominal value.

2.6 CONFIDENTIALITY
Vendors must hold all confidential information regarding ENSY Group which may be communicated to them or to which they may have access in strict confidence and are also expected to take reasonable means to protect such information. Confidential information includes all non-public information about ENSY Group, including without limitation business plans, forecasts, retail pricing arrangements and pricing strategies, personal information about ENSY Group employees, trade secrets and intellectual property. Vendors may not disclose, share or use this information other than for the benefit of ENSY Group. This includes a prohibition to display or allow any supplier/vendor or factory to display items packaged for ENSY Group or on the packaging of which Ensy’s name, trademark(s) or logo(s) appear in any trade.

Confidential and proprietary information includes, but is not limited to Ensy’s and its customers’ intellectual property; trade and business secrets; best practices; customer requirements; copyrights; patents; logos; trademarks; employee data; customer, and Supplier lists; computer-generated reports; data used in the course of business; costs; profit and loss statements and non-public financial data; markets; plans for future development; corporate strategy; contracts with other parties; product lines and products; bids and quotes; pricing information, and other business information not available to the public.

Ensy does not encourage and will not accept proprietary information regarding Ensy customers or competitors received in an unauthorized manner and Suppliers are advised to not disclose such information to Ensy employees. Disclosure of such information by Suppliers shall be considered a breach of contract with Ensy in addition to any other violations under applicable law.

3. ENGAGEMENT
All vendors are required to carefully review the Vendor Code and agree to abide by its terms as a condition of doing business with ENSY Group, either by completing the attached form or by signing a contract with ENSY Group which incorporates the Vendor Code. Vendors will be asked to certify compliance with the Vendor Code every two (2) years. 

4. MONITORING AND ENFORCEMENT
Vendors are expected to ensure that the standards outlined in the Vendor Code are communicated, understood and implemented at every level of their organization.

ENSY Group reserves the right to assess and monitor vendor compliance with these standards. To this end, vendors are asked to maintain complete and accurate records and to grant ENSY Group or a designated agent of ENSY Group with unrestricted access to facilities, records and workers for inspection purposes. If ENSY Group determines that a vendor has violated the Vendor Code, the vendor will be required to propose and implement a corrective action plan in order to bring its business up to Ensy’s standards within a reasonable timeframe. ENSY Group also reserves the right to cancel purchase orders, to terminate the relationship with a vendor who is unwilling or unable to comply with the Vendor Code or to remediate a situation of non-compliance within a reasonable timeframe, or to terminate the relationship immediately in case of serious violation or gross negligence.

5. QUESTIONS:
Questions regarding the Vendor Code may be submitted to ENSY Group via:
ENSY Group inc. | Legal department
364A Sherbrooke East
Montreal, QC, H2X 1E6, Canada.
+1(833) 776-6331
legal@ensy.ca

6. REPORTING VIOLATIONS
Violation by Suppliers of any of the Principles described above or on the website or any law will lead to serious administrative and operational action, up to and including termination of contracts for breach and/or the elimination of Supplier from Ensy’s bidders' list and the cancellation of any future business relationship.

Any person who believes that a violation to the Vendor Code has occurred is encouraged to report the relevant information in confidence to the Legal Department of ENSY Group at legal@ensy.ca. With respect to the application of the Vendor Code, the head of the Legal Department will report directly to the Audit Committee, which has been delegated the primary risk oversight responsibility by the Board of Directors of ENSY Group will make every effort to investigate reported violations and take appropriate measures to maintain the integrity of its business, practices and beliefs