The Environmental Policy will be reviewed periodically by the Division and/or site level Executive Management to ensure its continuing suitability.

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Nathan Cox
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1 Environmental Policy PCE Paragon PCE Paragon is committed to protecting the environment and controlling the usage of resources in manufacturing and related operations through continual improvement of its operations. PCE Paragon is committed to: Maintaining compliance with relevant environmental legislation and regulations. Define and review objectives and targets for continual prevention and/or reduction of pollution to safeguard against adverse impact on the environment. Reuse, Recycle and Reduce consumption wherever possible. Record and maintain environmental system control data for monitoring of performance and promoting prevention and continuous improvement of its operations. This Environmental Policy is applicable to PCE Paragon operations in Huntsville, Alabama, Guadalajara, Mexico, and Raleigh North Carolina, US, Systems and Options. The Environmental Policy is communicated to all PCE Paragon employees, involved in the following operations: Huntsville, Alabama, Guadalajara, Mexico, and Raleigh North Carolina, US, Systems and Options. The Environmental Policy will be reviewed periodically by the Division and/or site level Executive Management to ensure its continuing suitability. This policy is made available to the public upon request. How can PCE Paragon RTP employees support our Environmental Policy? Follow the recycle guidelines defined in our EMS training and procedures Conserve natural resources. Copy double-sided, use a reusable mug, purchase products made of recycled materials, minimize packaging, etc. Use alternative forms of transportation to work (carpool, vanpool, ride the bus, ride a bike). This helps reduce our Carbon Footprint. Conserve energy (power saving mode on equipment not in use, turn off lights and equipment when not needed, etc.) Know the proper operating procedures for your job, and how your job can impact the environment. Ensure that all chemicals used at PCE Paragon are approved through the site chemical authorization process. Conserve Water, report any leaking or dripping faucets or pipes. PCE Paragon RTP, NC

Define and review objectives and targets for continual prevention and/or reduction of pollution to safeguard against adverse impact on the environment.

2 EMS Program and Goals PCE Paragon RTP EMS Program The PCE Paragon RTP Environmental program is to assure proper recycling of cardboard, paper, glass bottles, aluminum cans, plastic bottles, used batteries, and scrap material. PCE Paragon RTP EMS Program Goal The PCE Paragon RTP Environmental goal is to achieve and maintain a minimum 95% compliance score to our monthly recycling audits. How do you as an employee support our goal to maintain a 95% compliance score to recycling audits? By assuring 100% daily compliance to recycling items in the designated recycling receptacles for cardboard, paper, used batteries, glass, aluminum cans and plastic bottles, and scrap electronics and toner. PCE Paragon RTP Aspects and Impacts Significant Aspect: The generation of used cardboard, paper, glass bottles, aluminum cans, and used batteries resulting from the manufacturing and office processes. Significant Impact: Increased landfill volumes if the recycling program is not followed. Regulatory Fines or Penalties PCE Paragon RTP has not had any regulatory fines or penalties in the last 3 years. Reduce, Recycle and Reuse!

How do you as an employee support our goal to maintain a 95% compliance score to recycling audits?

3 Subject: Cascading IBM's S&EMS requirements Dear Supplier On behalf of IBM and at their request, FOXCONN is cascading to you IBM's Social & Environmental Management System requirements. If you have any questions regarding compliance, please contact your IBM Contract Manager. IBM's S&EMS requirements 1. Define, deploy, and sustain a corporate responsibility and environmental management system that identifies significant aspects of the supplier's intersections with these matters, including those articulated in the Electronic Industry Citizenship Coalition Code of Conduct (EICC) and/or IBM's Supplier Code of Conduct Principles. Supplier must be able to demonstrate that such a management system is in place and deployed at their sites where work for IBM is performed, such that should IBM choose to conduct a 3rd-party audit of a supplier's Supply Chain Social Responsibly (SCSR) program and/or environmental program, supplier will be able to demonstrate complete compliance to all elements of IBM's SCP and the EICC Code of Conduct. 2. Establish programs (within the management system) to control operations that intersect with these matters and confirm compliance with applicable law, regulation and any particular contractual requirements 3. Measure performance associated with supplier's significant environmental aspects where applicable and include at a minimum each of the following aspects common to virtually all businesses: energy conservation scope 1 and scope 2 greenhouse gas emissions waste management and recycling 4. Set voluntary environmental goals to achieve positive results associated with significant aspects where applicable and include at a minimum one in each of the three aspects cited in Supplier Requirement 3 above 5. Publicly disclose results associated with these voluntary environmental goals and other environmental aspects from the management system, including any regulatory fines or penalties that may have occurred 6. Train employees who are responsible for performing this work 7. Conduct self-assessments and audits as well as management reviews 8. Cascade this set of requirements to the supplier's suppliers who perform work that is material to the products, parts and/or services being supplied to IBM Please cascade same set of requirements to your sub-suppliers who perform work that is material to the products, parts and/or services being supplied to IBM. Sincerely Foxconn PCE Paragon Solutions (USA) Inc.

Define, deploy, and sustain a corporate responsibility and environmental management system that identifies significant aspects of the supplier's intersections with these matters, including those

LTES Environmental Management System (EMS) Compliance

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