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California Transparency Act

On January 1, 2012, the California Transparency in Supply Chains Act of 2010 (SB 657) went into effect in the State of California. Under the law, large
manufacturers and retailers are required to disclose their efforts to
eradicate slavery and human trafficking within their supply chains.

Cloud-9 does not use and does not permit the use of human trafficking or
slavery in the production of any of our products. Direct suppliers certify
their compliance through a contractual provision within our supplier
agreement.

Cloud-9 evaluates the risk of slavery and human trafficking by geographical
region and conducts audits in areas of concern to verify supplier
compliance.  Audits are routine and done by the company.

All Cloud-9 employees who deal directly with our suppliers are expected to
act ethically and are required to exercise due diligence in selecting
suppliers. Our supply chain evaluation includes the assessment of risks in
regards to forced labor, human trafficking, and slavery.

Cloud-9 administers an on-going training program on slavery and human
trafficking to all employees responsible for product sourcing.