Environmental, Social & Governance Policy

Reynolda Equity Partners (“REP”) has a fundamental ethical and investment belief in responsible behavior. We seek to execute this belief across our firm’s culture, general business practices, investment considerations, the general partners with which we invest, and the portfolio companies with which we interface. We have based our Environmental, Social and Governance Policy on the ten principles of the United Nations Global Compact, as listed on Annex A hereto and accessed online at https://www.unglobalcompact.org/what-is-gc/mission/principles, as well as the six principles of the United Nations Principles for Responsible Investment, as listed on Annex B hereto and accessed online at https://www.unpri.org/pri/what-are-the-principles-for-responsible-investment.

By implementing this ESG Policy, REP strives to align its operations with broader societal objectives, including consideration of the following ESG issues:

1. Environmental: Precaution for depletion of natural resources, disruption of fragile ecosystems, loss of endangered species, and pollution.
2. Social: Elimination of child labor, forced or compulsory labor, discrimination, and sexual harassment; protection of human rights and diversity; and promotion of business fairness.
3. Governance: Evaluation of corporate behaviors and values, non-shareholder stakeholder interests, and employee relations.

Specifically, our ESG Policy includes the following commitments and initiatives:

1. During the diligence, execution, monitoring and disposition stages of our investment process, REP will evaluate and contemplate ESG, as appropriate.
2. REP will encourage the financial sponsors and companies in which we invest to also consider relevant environmental, social and governance issues.
3. REP is committed to compliance with applicable national, state, and local labor laws in the jurisdictions in which we operate.
4. REP respects the human rights of those affected by the operation of our business, including our investment activities.
5. REP incorporates ESG issues into our ownership policies and practices.
6. REP seeks to use governance structures that provide appropriate levels of oversight in the areas of audit, riskmanagement and potential conflicts of interest.
7. REP maintains policies that prohibit bribery and other improper payments to public officials consistent with the USForeign Corrupt Practices Act and similar applicable laws in other jurisdictions in which we operate and invest.
8. REP strives to be a responsible employer by creating a culture in which we develop a diverse pool of high caliber employees and by committing to talent management and development in order to give everyone at REP an opportunityto perform to the best of his or her ability.
9. REP’s employees will work together to consider and promote ESG.

To promote ESG culturally at REP and to establish accountability for such promotion, REP has appointed two senior professionals and two additional team members to serve as ESG Champions: Marshall White (lead), Whit Edwards, Dudley Commander, and Mary Lou Cianci. Each is passionate about ESG and works to instill these principles in REP’s activities and culture. Additionally, REP maintains a “Green Team” consisting of REP employees whose goal is to promote ESG initiatives throughout the firm.

REP strongly believes in and promotes honesty, integrity, fairness and respect in all of our business dealings. Furthermore, we believe that introducing ESG considerations in our business and investment decisions can create value for our clients and investors.

Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and

Principle 2: make sure that they are not complicit in human rights abuses.

Labor
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

Principle 4: the elimination of all forms of forced and compulsory labor;

Principle 5: the effective abolition of child labor; and

Principle 6: the elimination of discrimination in respect of employment and occupation.

Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;

Principle 8: undertake initiatives to promote greater environmental responsibility; and

Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes;

Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices;

Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest;

Principle 4: We will promote acceptance and implementation of the Principles within the investment industry;

Principle 5: We will work together to enhance our effectiveness in implementing the Principles; and

Principle 6: We will each report on our activities and progress towards implementing the Principles.

The increasing severity of climate change brings with it a range of material and immaterial risks pertinent to long-term investment activity. An increasing arsenal of scientific research highlights a complex profile of climate-related risks pertaining to regulation, asset yield and pricing, consumer preferences and firm reputation, all of which make outcomes of long-term investing difficult to predict or control.

Reynolda Equity Partners (“REP”) is focused on the long-term prosperity of its employees, clients, various stakeholders, and planet. To that end, REP seeks to take actions to both mitigate climate change instigators and, to the extent that certain environmental conditions are irreversible, cautiously adapt to existing risks.

To accomplish this, REP has created a three-pronged approach to its Climate Policy centered around Information; Education; and Action. This keeps REP accountable for:

1. Staying informed about climate-related research and regulations
   1. Forming a team of employees across various levels of management to follow climate-related news and identify risks and opportunities accordingly
   2. Appointing at least one Managing Partner to convey these risks and opportunities to the rest of the investment team
   3. Actively reading and internalizing the literature provided by partner organizations, including the UN Global Compact and UN Principles for Responsible Investment
2. Playing a proactive role in increasing awareness of industry practices that help mitigate the various long-term climate- driven risks by:
   1. Communicating climate-conscious and risk-mitigating practices to financial sponsors and portfolio companies
   2. Encouraging financial sponsors and portfolio companies to develop policies pertaining to environmental, social, and governance issues
   3. Periodically communicating REP’s climate-focused practices to limited partners
   4. Providing REP employees with guides and training pertaining to making more climate-friendly decisions
3. Taking actionable steps firmwide to reduce REP’s carbon footprint by:
   1. Taking advantage of various programs that help divert waste from landfills and increase energy and water efficiency
   2. Adjusting practices during different seasons to minimize energy use (e.g., lowering shades during the day in summertime to prevent excess heating)
   3. Subsidizing and/or encouraging the use of alternative transportation to work (walking, cycling) to decrease emission of fossil fuels
   4. Engaging REP employees in a quarterly activity related to environmental or social issues
   5. Evaluating the effectiveness of REP’s climate-focused actions on an annual basis, identifying areas for improvement, and adjusting actions accordingly