ITEQ Corporation

Supplier Code of Conduct

ITEQ is committed to ensuring that worker in its supply chains are treated with respect and dignity, and that business operations are environmentally responsible and conducted ethically. To this end, ITEQ established this Supplier Code of Conduct (“Code”) and requires our suppliers to operate in accordance with the principles outlined in this Code and in full compliance with the laws, rules and regulations of the countries in which they operate. In addition, ITEQ also expects our suppliers to hold their suppliers, contractors, and service providers to the standards defined in this Code.

1. Social Responsibility.

Suppliers should be committed to comply with all applicable local laws and regulations, the Corporate Social Responsibility Policy (CSR) of ITEQ, the requirements set forth in the Responsible Business Alliance (RBA), including but not limited to:

1.1. Payment of the wages shall be in compliance with the minimum wages requirement under the law, and the working hours and overtime hours shall not exceed in the maximum hours permitted by the law.

1.2. Prohibition of child labors or workers whose age are under the youngest age permitted by the law, except for the apprentices working in the cooperative education place (i.e. student participants and trainees).

1.3. Prohibition of any compulsory labors or involuntary employees by any means, such as incarcerated worker, bonded labor or any involuntary worker.

1.4. Prohibition of any discrimination in hiring employees or in working due to the race, color, age, gender, sexual orientation, ethnicity, disability, pregnancy, religion, political affiliation, union membership or marital status.

1.5. No restriction of the employee in joining the legitimate association, organization labor unions; the employee has the freedom to participate in the association.

2. DRC Conflict Free Materials

2.1. Suppliers and their suppliers shall support to the use of DRC conflict-free materials, for several metals commonly used in the electronics industry, particularly, gold (Au), tantalum (Ta), tungsten (W) and tin (Sn) (“DRC Conflict Free Materials”).

2.2. DRC Conflict Free Materials mean that the metal is (i) not from the Democratic Republic of the Congo’s war area of the mine, (ii) from the Refinery certified by RMI (Responsible Minerals Initiative), and (iii) not from the trade routes controlled by the illegal government military team or political. Currently, the identified illegal trade routes include direct output from the war zone, such as: output through Luanda, Uganda, Burundi, Tanzania and Kenya (i.e. the global output route involved the illegal mining of minerals and pointed out by United Nations Security Council).

2.3. Suppliers shall agree to act with the reasonable care within their supply chain to assure that these metals are DRC Conflict Free Materials.

3. Hazardous Substance Management

3.1. Suppliers shall warrant that any and all products and/or service (including the accessories, packing material and others) provided by them to ITEQ will not violate any applicable laws, regulations and directives of all relevant country or region upon the delivery, including but not limited to the REACH imposed by European Union.

3.2. Suppliers shall warrant that they shall operate their pollution treatment facilities in compliance with the applicable laws, dispose waste and pollutant within the statutory limitation of concentration and quantity, and have hazardous waste disposed only by a third party qualified under the laws.

3.3. Upon ITEQ’s request, suppliers shall retain the third-party inspector consented by ITEQ to test, verify and certify the products and/or services provided by them

4. Non-Infringement

4.1. Supplier shall warrant that any and all products and/or service provided by them to ITEQ shall not infringe any third party’s patent, copyright, trade secret or any other intellectual property rights.

4.2. In the event that such products and/or service provided by suppliers infringe, or is alleged to infringe, any rights, suppliers shall resolve such dispute, provide any and all defense or assistance with regard to the litigation or others to ITEQ, indemnify and hold ITEQ and its customers harmless from and against any and all settlements, damages, court costs and other litigation expenses, relevant security expense, attorneys’ fees, etc. according to law, and refund any payment received from ITEQ for such products and/or service.

4.3. In addition to the aforesaid warrants and obligations, suppliers shall, at their expense and according to ITEQ’s instruction, (i) obtain the necessary license so as to legally provide the said products and/or service to ITEQ, or (ii) replace the said matters with non-infringing ones which have the similar function. Suppliers will pay any and all costs and expenses arising from the above (i) and (ii).

5. Supplier shall agree to forward the terms and conditions of this Code of Conduct to all of their subcontractors and suppliers and urge and monitor their compliance therewith.

6. Upon ITEQ’s request, suppliers shall undertake to sign the document and assist the personnel appointed by ITEQ to carry out the relevant audit procedures so as to certify suppliers’ compliance with this Code of Conduct.

7. If suppliers breach any of the foregoing paragraphs, suppliers shall be responsible for any and all damages, losses and expenses suffered by ITEQ arising out of or in connection with suppliers’ breach (including but not limited to fines, punitive penalty, liquidated damages and penalty, settlement, compensation, litigation expenses and attorneys’ fees) and ITEQ shall be entitled to (i) terminate the purchase agreement entered by and between ITEQ and suppliers and/or cancel relevant effective purchase order; and (ii) remove supplier from ITEQ’s approved supplier list.