K-Swiss has adopted the SA8000 Standard for factory operations. All of K-Swiss' products are made in factories owned by others. At K-Swiss' request, all factory owners have agreed to implement the SA8000 Standard. The standard includes bans on child labor, mistreatment of workers, a ban on illegal overtime, and on all overtime for which workers are not paid premium wages. The standard requires measures to promote worker safety (e.g., fire safety, factory hygiene, safe living quarters), and regular audits by outside agencies which have been specially certified on the SA8000 Standard. We recognize that full implementation of the SA8000 Standard will require continual efforts, and we are serious about it.