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California Transparency in Supply Chain Act of 2010 Mandatory Disclosure

Chiquita Brands International, Inc., and its affiliated companies ("Chiquita"), recognize the atrocities of slavery and human trafficking which continue to exist in our society.  In compliance with the California Transparency in Supply Chains Act of 2010, and in an effort to help eradicate these atrocities, Chiquita has taken certain steps to ensure that its supply chains are free from slavery and human trafficking.

First, Chiquita engages in the verification of its supply chains to evaluate and address risks of human trafficking and slavery through a variety of means:

* Agreements with Chiquita's suppliers typically require suppliers to certify that they do not use child labor, they do not use forced or mandatory labor, they do not violate workers' right of free association and collective bargaining, and that materials comply with all applicable laws regarding slavery and human trafficking.  Chiquita is undertaking a review of our contracts, and formulating a plan to ensure such prohibitions are included in all supplier agreements.

* Chiquita's Sourcing Strategy, applicable to its vendors and suppliers, requires those entities to self-verify that employees are free to leave their workplace after their scheduled work hours and are free to terminate their employment after reasonable notice.

* Chiquita's Code of Conduct is incorporated into its contracts with vendors and suppliers and demands compliance with ILO Conventions 29 and 104 prohibiting forced labor and slavery. Through these yearly contractual agreements our suppliers certify that they are in compliance with laws regarding slavery and human trafficking in their respective countries.
* All Chiquita–owned farms and many of Chiquita's independent banana and pineapple growers are certified by the Rainforest Alliance and SA8000 as being compliant with antislavery and forced labor provisions.  The Rainforest Alliance is an international, non-profit, environmental organization whose mission includes promoting worker welfare and community well-being. Compliance with the ILO Conventions and the UN Declaration of Human Rights, specifically prohibitions against forced labor, is mandatory. SA8000, developed by Social Accountability International, provides standards based on national laws, international human rights norms, and the conventions of the ILO. These standards include a strict prohibition against forced labor.

These verifications are in process and are being evaluated to ensure maximum effort is geared towards mitigating the risk of human trafficking and slavery. That being said, these verifications are conducted by Chiquita, by the suppliers and vendors, and, with regard to Chiquita-owned farms and many banana and pineapple growers, by the Rainforest Alliance and SA 8000 authorized independent auditors.

Second, Chiquita conducts random audits and on-site verifications of suppliers and growers to evaluate supplier compliance with company standards for trafficking and slavery in supply chains.  These audits are conducted by Chiquita and we are in the process of contracting with an Independent Contractor to perform additional on-site verifications.

Third, Chiquita requires suppliers to certify that materials incorporated into the product comply with laws regarding slavery and human trafficking of the country or countries in which they are doing business.  As outlined above, agreements with those suppliers require them to certify that they comply with those laws; vendors and suppliers must certify that employees are free to leave the workplace after scheduled work hours and may terminate their employment with reasonable notice; and Chiquita’s Code of Conduct prohibition against forced labor and slavery is incorporated into all vendor and supplier contracts.

Fourth, Chiquita maintains internal accountability standards and procedures for employees and contractors failing to meet company standards regarding prohibition against slavery and trafficking.  If suppliers/contractors violate Chiquita's Code of Conduct in this regard, Chiquita is entitled to suspend its purchases of goods or services from that supplier/contractor.  Chiquita maintains a zero-tolerance policy for violations of Chiquita's standards regarding prohibiting slavery and human trafficking by its employees.

Finally, Chiquita provides annual training to all company employees and management who have direct responsibility for supply chain management. This training includes information on human trafficking and slavery and recognizing and mitigating risks within the supply chains.

The need to evaluate and address the risks of human trafficking and slavery in our product supply chain has long been part of our commitment to Corporate Responsibility and will remain a critical aspect of our supplier management. We will continue to require our suppliers, vendors, and employees to comply with Chiquita’s prohibition against slavery and human trafficking.
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