[Apples]

California Transparency in Supply Chains Act – 2010.

The California Transparency in Supply Chains Act (the "Act") requires certain companies to disclose their efforts (if any) to eradicate slavery and human trafficking from their supply chains. Knouse Foods complies with all applicable laws, rules, and regulations where we manufacture products, and expects that our suppliers do so as well. In particular, in accordance with our Standard Terms and Conditions, our suppliers must comply with all applicable laws, rules, and regulations, which would include laws concerning human trafficking and slavery. In addition, Knouse Foods complies with the Ethical Sourcing requirements of the Safe Quality Food Institute ("SQF"), and expects its suppliers to do so as well. With respect to specific requirements under the Act: (i) Knouse Foods, through internal processes, engages in verification of supply chains to evaluate and address risks of human trafficking, although to date this verification does not take the form of a formal, independent, or unannounced audit of suppliers; (ii) Knouse Foods is requiring direct suppliers to certify that materials incorporated into Knouse Foods products comply with laws regarding slavery and human trafficking; (iii) Knouse Foods, through the SQF Ethical Sourcing Requirements, maintains internal accountability standards and procedures for employees or contractors failing to meet company standards regarding slavery and human trafficking; and (iv) Knouse Foods, through the SQF Ethical Sourcing Requirements, provides training on slavery and human trafficking to persons who have direct responsibility for supply chain management. In addition, Knouse Foods will review our options in the future, as such things as particularized training, audits, and procedures become available.

Any party having a question or concern with regard to Knouse Foods, Inc. practices in this regard may contact our Customer Service Representative: (717) 677-8181

[background]