1    Factory Audit Fees to Be Paid By the Vendor/Factory

o Effective for factory audits conducted on or after 6 July 2009, if the audit results for an initial or annual recertification audit do not lead to the factory being certified, a chargeback will be issued to the vendor for the audit fees owed to the audit company. Payments not received promptly may result in delays or cancellation of shipments.

2    New Items Reviewed During Audit

o The factory must have a written policy prohibiting the use of corporal punishment which is communicated to the workers.

o The factory must have a written policy that overtime is voluntary which is communicated to the workers.

3     Revisions of Requirements

o Verification that the factory does not engage in transshipping has been transferred to the Dollar General Customs Team.

o Please review the factory information on the vendor manual for updates on calculating work hours.

4     Changes to Probation Levels 1 and 2

o Probation level 1 results from violations regarding

* Corporal Punishment Policy

* Regular and overtime pay rate

* Day of rest

* Maximum work hours

* Voluntary overtime

o Probation level 2 results from violations regarding

* Insufficient Documentation-proof of age

* Emergency exits

* Fire extinguishers

5   No Change to Automatic Failures

o Dollar General will not use any factory that employees workers younger than 16 years of age.

o Dollar General will not use any factory that uses prison, forced or bonded labor.