California Transparency in Supply Chains Act of 2010

Jo-Ann Stores, Inc.

Disclosure

Jo-Ann Stores, Inc., doing business as Jo-Ann Fabric and Craft Stores, contractually requires all of its vendors to comply with all applicable laws, including federal, state and foreign laws regarding slavery and human trafficking. If Jo-Ann learns that a vendor has failed to comply with its legal obligations, Jo-Ann will take appropriate action against that vendor.

For goods sourced directly by Jo-Ann, including products that are sold under the "Jo-Ann" name or under one of our private-label trademarks (such as "Summer Inspirations", "Holiday Inspirations", or "Autumn Inspirations"), Jo-Ann manages a factory audit program to ensure that the makers of these goods comply with our standards, including compliance with human trafficking laws. Jo-Ann?s factory audit program includes the following standards to ensure that our direct-sourced products are made without coerced labor:

• No child labor or youth labor. Factories will not employ anyone under age 16 and must follow country-specific laws and rules regarding working hours and working conditions for minors.
• No involuntary labor. Factories will not use involuntary labor (including slave labor), prison labor, indentured labor, or forced labor.
• No corporal punishment. Factories will not use corporal punishment or any other form of physical or psychological coercion or intimidation against their workers.
• Non-discrimination. Factories will not discriminate on the basis of age, gender, race, maternity or marital status, nationality or cultural, religious or personal beliefs, disability, sexual orientation, political opinion or otherwise in relation to hiring, wages, benefits, termination or retirement.
• Working hours. Factories will not force workers to work more than 60 hours per week, or more than any maximum number of hours per week set by country-specific laws and rules, whichever is less. Workers will receive at least one day off during each seven-day period.

To monitor compliance with these standards, the non-U.S. factories doing business with Jo-Ann pre-authorize Jo-Ann and its sourcing agent to conduct scheduled and unscheduled inspections of their facilities.

All foreign factories producing private-label merchandise for Jo-Ann are audited before their first shipment of merchandise to Jo-Ann. There are three different types of audits that are conducted by Jo-Ann?s independent overseas sourcing agent:

1. the Initial Audit is a first time audit to verify compliance with Jo-Ann?s standards;
2. the Follow-up Audit is a second audit conducted after the Initial Audit, to verify the status of any corrective action required by the Initial Audit;
3. the Anniversary Audit is an audit that is conducted at the end of the designated approval period.

If violations are found during an audit, Jo-Ann and the factory will agree on a corrective action plan that eliminates the problem in a timely manner. If repeated violations continue, Jo-Ann may cancel orders and terminate business with the factory in question.