SUPPLIER CODE OF CONDUCT

the Supplier Code of Conduct outlines and defines the principles of social responsibility and the code of conduct for our business partners.

1. General principles and laws

2. Respecting human rights and working conditions

3. Respecting the environment

4. Conflict Minerals

5. REACH

6. IMDS

7. Implementing and monitoring observance and consequences of violations

BALTIC FILTER Supplier Code of Conduct

BALTIC FILTER is fully aware of its responsibility towards society. Our values as well as our adherence to applicable laws and general social and ethical principles are the stable basis of all decisions and all entrepreneurial action. These principles are laid down in writing in the Code of Conduct of BALTIC FILTER UAB.

We expect our business partners to also adhere to these standards and principles and to ensure that they are implemented in their supply chains. It outlines and defines the principles of social responsibility and the code of conduct for our business partners. The Supplier Code of Conduct aims to define the basic principles of cooperation with binding force and inform all business partners of these principles. This strengthens the common understanding of how to implement these principles in the day-to-day business.

The Baltic Filter Supplier Code of Conduct applies to all business partners of the BALTIC FILTER UAB and forms an integral part of the contractual relationship between BALTIC FILTER UAB and all business partners. This also applies to all affiliated companies and employees of the business partners (hereinafter referred to as „Supplier”). Each Supplier shall observe the Supplier Code of Conduct at the time of providing their services to a company of the BALTIC FILTER UAB. The principles and standards laid down in the Baltic Filter Supplier Code of Conduct are an integral part of our cooperation.

The Supplier shall also require its subcontractors to observe the Baltic Filter Supplier Code of Conduct.

General principles and laws

Laws Observance

BALTIC FILTER UAB expects its Suppliers to comply with legal rules and regulations as well as all contractual terms and conditions entered into with BALTIC FILTER UAB. Suppliers shall comply with relevant statutory provisions of the respective jurisdiction. If the Supplier Code of Conduct conflicts with applicable law, applicable law shall always take precedence. If local practice conflicts with a regulation of the Supplier Code of Conduct, the Supplier Code of Conduct shall be observed.

Transparent relationships with business partners

Suppliers are exclusively selected on the basis of the principles of competition and complete and detailed agreements which ensure appropriate remuneration and commissions.

Sanctions

The Supplier guarantees that is not involved in Sanctioned Activity (means any activity, service, carriage, trade or voyage subject to sanctions imposed by Lithuania, European Union, United Nations, United Kingdom, United States of America or any other applicable competent authority or government) neither is Sanctioned Party (means any persons, entities, bodies, or vessels designated by a Sanctioning Authority). If at any time Supplier becomes Sanctioned Party or the performance of the Contract becomes Sanctioned Activity BALTIC FILTER UAB is entitled to terminate the contract or even a business relationship with Supplier immediately.

Anti-corruption

Our Suppliers do not bribe and do not let themselves be bribed. Our Suppliers shall in particular ensure that their employees do not offer, promise or grant BALTIC FILTER UAB employees or their associated third parties any benefits with the object to obtain any benefit in the business relationship.

Anti-money laundering measures

Our Suppliers support all required measures to prevent money laundering in their sphere of influence.

Fair competition

Our Suppliers and their employees shall observe the national and international rules of fair competition and must not engage in any acts that violate competition law.

Compliance with foreign trade regulations

Our Suppliers comply with applicable national and international foreign trade regulations for all supplies, services and payments.

Avoiding conflicts of interest

Situations in which personal or financial interests of employees might conflict with those of their company must be avoided. To recognize and avoid such conflicts, the Suppliers shall immediately notify BALTIC FILTER UAB of situations which might limit the objectivity and independence of the employees.

Protection of information and data

Our Suppliers are aware of the meaning of information security and data protection for their company and their employees and provide effective protection in both areas. The Supplier processes personal data in compliance with all statuary provisions, in particular data protection regulations. The Supplier shall treat sensitive information of business partners and customers as confidential and protect them from unauthorized access and loss. The obligation to maintain confidentiality also continues after termination of the business relationship with BALTIC FILTER UAB.

BALTIC FILTER UAB accepts and respects the personal and individual differences of all employees. We will not tolerate discrimination, sexual or personal harassment, unfairness or offense. We are open and honest in dealings with each other, and our working atmosphere is based on mutual respect and shared responsibility. BALTIC FILTER UAB expects its Suppliers to follow this approach and comply with the following principles:

Free choice of employment

Employment is freely chosen. We do not tolerate forced and compulsory labor, (including slavery or forced labor for prisoners).

No child labor

Our Suppliers shall not violate the general legal requirements regarding the minimum age for admission to employment.

Nondiscrimination

The Supplier guarantees equality of treatment and opportunity, regardless of ethnic origin, race, gender, religion, nationality, sexual orientation, social background or political outlook, as long as they are based on democratic principles and tolerate different persuasions.

Working time and remuneration

Our Suppliers shall comply with the national laws and agreements concerning working hours and regular paid holidays. The remuneration observes – without discrimination in terms of sex – the respective legally guaranteed minimum wages and the minimum standards of the respective national economic sectors.

Industrial safety and health protection

The Suppliers ensure observance of all applicable laws and regulations regarding occupational health and safety as well as work and health protection. The Suppliers ensure that accidents and work-related diseases are prevented and that their employees work in a safe and healthy environment. Safety information and adequate personal protective equipment are available.

Use of resources / resource efficiency and energy consumption

The protection of resources and the environment are highly important, both with regard to development as well as manufacture, transport, and the disposal of products.

· Resource efficiency: The Suppliers use resources efficiently and have defined and implemented business processes for environmental aspects such as material use, energy consumption, greenhouse gas emissions, water quality and consumption, air quality, waste management, and other natural resources. This reduces emissions into air, water or soil and effectively minimizes environmental impacts. Relevant indicators are used to monitor the effectiveness. Upon request by BALTIC FILTER UAB, the Suppliers shall provide information and data for the preparation of resource efficiency analyses and ecobalances, e.g. the total energy consumption, CO2 emissions from own and external energy supply, total water consumption, process waste water, waste for disposal, waste for recycling, VOCs emissions (volatile organic compound).

· Waste management: The Suppliers avoid waste at the development, manufacturing and use phase and the subsequent use of products as well as other activities. Where possible re-use and recycle, also takes care of safe and environmentally friendly disposal of non-recyclable waste, chemicals and waste water.

· Environmental management: The Suppliers ensure observance of all applicable laws and regulations for environmental protection. The Suppliers shall also provide and use an adequate environmental management system (depending on the impacts of production on the environment, e.g. according to ISO 14001) in order to minimize environmental impacts and hazards and improve environmental protection in the day-to day business.

Hazardous substances

The Supplier identifies potentially hazardous chemical or other substances that present a hazard if released to the environment, and ensures that they are handled, transported, stored, recycled and disposed in a safe manner in accordance with legal requirements and in coordination with the responsible authorities.

All suppliers that use the conflict minerals wolframite, cassiterite, columbite, tantalite or gold are obliged to declare the origin of the materials. If you source conflict minerals from unregistered foundries or refineries, we ask you to have them registered in accordance with the Responsible Minerals Initiative (RMI) or to switch your sources of supply.

We also ask you to make provisions for corresponding regulations vis-à-vis your suppliers.

All BALTIC FILTER UAB suppliers have to be compliant with REACH Regulation. We inform you that all material suppliers have a duty to communicate information on substances in articles according to Article 33 in REACH Regulation (EC) no. 1907/2006 (SVHC substances). Suppliers have a duty to inform BALTIC FILTER UAB if any supplied products contain any SVHC (Substance of Very High Concern) in concentration above 0.1% of weight of the article. And for these products provide all required information: concerned BALTIC FILTER UAB delivered material identification number, name and weight of SVHC. The supplier has a duty to inform BALTIC FILTER UAB if any supplied products contain any substance from the Annex XIV in any concentration and supplier has a duty to provide all required information: concerned BALTIC FILTER UAB delivered product identification number, name and weight of substance. All required information mentioned above will be delivered to BALTIC FILTER UAB using IMDS system or send by written declaration letter directly to contact email: tiekimas@mfilter.lt, putting kokybe@mfilter.lt into the copy.

CLP – Regulation (EC) no. 1271/2008 on classification, labelling and packaging of substances and mixtures which define duty to all suppliers of process chemicals to provide to BALTIC FILTER UAB a safety data sheet. The safety data sheet (SDS) shall be provided free of charge on paper or electronically no later than the date on which the substance or mixture is first supplied and has to be always in local language based on country of use. For detailed SDS requirements see actual regulation. All necessary information about REACH and CLP Regulation can be found on ECHA agency website http://echa.europa.eu/ If you have any questions regarding REACH and CLP at BALTIC FILTER UAB, please do not hesitate to contact our specialists via e-mail: kokybe@mfilter.lt.

All BALTIC FILTER UAB Suppliers of RAW materials, semi finished or finished products should be registered in IMDS providing information on supplied materials, semi finished or finished products. This requirement is also valid for their suppliers and should be forwarded.

Implementation

The BALTIC FILTER UAB expects the Suppliers to fulfill the requirements of this Supplier Code of Conduct and introduce a respective compliance management system to ensure observance of the Supplier Code of Conduct in all areas. This includes at least:

· The Suppliers shall introduce a respective Code of Conduct in their companies, which informs the employees of the social, ethical and environmental standards and requires them to observe these standards.

· We call on our Suppliers to implement the principles and requirements of this Supplier Code of Conduct also in their upstream supply chain (Suppliers and sub-contractors).

· The Suppliers provide for complete documentation to prove compliance with the rules of the Supplier Code of Conduct.

· If needed The Suppliers develop and implement adequate training measures to give their employees an adequate understanding of the principles of this code of conduct that apply to them, as well as all applicable laws, regulations and generally recognized standards.

· BALTIC FILTER UAB strongly recommends that the Suppliers appoint a Compliance Officer who monitors observance of the principles and regulations in this code of conduct.

Continuing improvement

BALTIC FILTER UAB expects its Suppliers to continually improve the implementation of the requirements laid down in this Supplier Code of Conduct in order to permanently minimize negative environmental and social impacts.

Consequences

The BALTIC FILTER UAB expects the Suppliers to allow their employees to speak up if the requirements described here are not fulfilled.

The BALTIC FILTER UAB reserves the right to review fulfillment of the requirements by appropriate means like questionnaires, audits and visits to Suppliers. An onsite inspection will take place only upon prior notice during regular business hours and in the presence of the Supplier’s representatives.

The Supplier shall assess and remedy each identified non-compliance with the BALTIC FILTER UAB Supplier Code of Conduct in their supply chain within a reasonable period of time, without additional cost to the BALTIC FILTER UAB.

The BALTIC FILTER UAB considers the fulfillment of the requirements contained in this document to be essential for the respective business relationship. Culpable breaches of these principles will not be tolerated by BALTIC FILTER UAB and can result in the withdrawal or termination of the contract or even the termination of the business relationship.

Reporting options: Misconduct shall be identified at an early stage, reviewed and stopped immediately. This requires the attention of the entire staff and their willingness to report possible violations of rules if there is concrete evidence. Incidents may be reported via email to kokybe@mfilter.lt putting tiekimas@mfilter.lt into the copy.