An Artifact message to employee’s past, current and future.

As challenging as it is, we need to live by actions that are transformative and honest, to focus our energies on education, and when necessary, change. The report and recommendations from Seattle-based Diversity University are now complete. This notice then, is the basis for improvements and changes Artifact is making and our committed timeline for these changes. Diversity University methodology In Depth interviews with employees was conducted by Diversity University founder Megan Lutes, March 2022. Simultaneously, she performed a comprehensive audit of Artifact employee records, and Artifacts policies. Ms. Lutes was free to define the scope and interviews required. She interviewed employees who made the initial complaints alleging discrimination, and who made the choice to speak with her. She did not feel that it was necessary to speak with other employees. Diversity University Findings on concerns raised by employees (verbatim) • Disparate/inconsistent or discriminatory actions (discrepancies in pay, termination of employment, inconsistencies in discipline) due to race; no sufficient evidence was found to validate race as a determining factor in any decision. There is evidence that both POC and white employees were written up for similar behaviors. • With regard to pay disparities, there is no correlation with pay and race that Diversity University could find. It would benefit the store to do a full audit of their pay practices and make sure they are being consistent, including when minimum wage changes to make sure existing employees may proportionately get the right amount of pay. • With regard to working off the clock {i.e. dropping off receipts in a filing cabinet, turning off lights, locking the door, etc.}, I did find that some education should be had regarding non-exempt employee status. • With regard to cultural insensitivities, it seems that inherently in this type of business there will be cultural artifacts. It sounds like there is a solid system in place to attempt to vet these and that employees themselves have a large amount of control over what they buy. Diversity University Recommendations Artifact will act and implement all of Diversity University recommendations going forward. We are listing action items and our timelines for completion. • Refresh on {company} objective standards for reviewing disciplinary or termination decisions. To be updated in Artifact employee HR materials - To be completed on Q2

Clarify policies on pay and training on non-exempt requirements. To be updated in Artifact employee HR materials - To be completed on Q2

Conduct full pay audit and draft and establish pay policies. Artifact will bring an external auditor to perform a Pay Equity Analysis to ensure fair pay rates and compliance with Oregon and federal pay laws - To be completed, end of Q2

Conduct microaggression training or unconscious bias training. Managers will be required to further partake on DEI training and will meet periodically with a DEI specialist to review and audit practices and policies - To be completed on Q2 and ongoing

All new hires will be required to participate in DEI training - Ongoing

All employees will be required to participate in annual DEI refreshers - Annually We will immediately create a “communication board” for employees on policies and organizational changes as they occur. This will be placed in the employee break room used by all workers. Sincerely, Leah

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