0. Introduction: The Collegiate Licensing Company ("CLC") and the collegiate institutions represented by CLC ("Member Institutions") are each committed to conducting their business affairs in a socially responsible and ethical manner consistent with their respective educational, research and/or service missions, and to protecting and preserving the global environment. While CLC and the Member Institutions believe that Licensees share this commitment, CLC and the Member Institutions have adopted the following Code of Conduct (the "Code") which requires that all Licensees, at a minimum, adhere to the principles set forth in the Code.

   Throughout the Code the term "Licensee" shall include all persons or entities which have entered into a written "License Agreement" with CLC to manufacture "Licensed Articles" (as that term is defined in the License Agreement) bearing the names, trademarks and/or images of one or more Member Institutions. The term "Licensee" shall for purposes of the Code, and unless otherwise specified in the Code, encompass all of Licensees' contractors, subcontractors or manufacturers which produce, assemble or package finished Licensed Articles for the consumer.

1. Notice: The principles set forth in the Code shall apply to all Licensees. As a condition of being permitted to produce and/or sell Licensed Articles, Licensees must comply with the Code. The foregoing constitutes a requirement for Licensees pursuant to Paragraph 24 of the License Agreement. Licensees are required to adhere to the Code by _______("Effective Date").

2. Standards: Licensees agree to operate work places and contract with companies whose work places adhere to the standards and practices described below. CLC and the Member Institutions prefer that Licensees exceed these standards.
   0. Legal Compliance: Licensees must comply with all applicable legal requirements of the country(ies) of manufacture in conducting business related to or involving the production or sale of Licensed Articles. Where there are differences or conflicts with the Code and the laws of the country(ies) of manufacture, the higher standard shall prevail, subject to the considerations stated in Section VI.

   1. Employment Standards: Licensees shall comply with the following standards:
      0. Wages and Benefits: Licensees recognize that wages are essential to meeting employees' basic needs. Licensees shall pay employees, as a floor, at least the minimum wage required by local law or the local prevailing industry wage, whichever is higher, and shall provide legally mandated benefits.¹

      1. Working Hours: Except in extraordinary business circumstances, hourly and/or quota-based wage employees shall (i) not be required to work more than the lesser of (a) 48 hours per week and 12 hours overtime or (b) the limits on regular and overtime hours allowed by the law of the country of manufacture or, where the laws of such country do not limit the hours of work, the regular work week in such country plus 12 hours overtime, and (ii) be entitled to at least one day off in every seven day period.

      2. Overtime Compensation: In addition to their compensation for regular hours of work, hourly and/or quota-based wage employees shall be compensated for overtime hours at such a premium rate as is legally required in the country of manufacture or, in those countries where such laws do not exist, at a rate at least equal to their regular hourly compensation rate.

      3. Child Labor: Licensees shall not employ any person at an age younger than 15 (or 14, where, consistent with International Labor Organization practices for developing countries, the law of the country of manufacture allows such exception). Where the age for completing compulsory education is higher than the standard for the minimum age of employment stated above, the higher age for completing compulsory education shall apply to this section. Licensees agree to consult with governmental, human rights and nongovernmental organizations, and to take reasonable steps as evaluated by CLC, an advisory committee of Member Institutions, and the applicable Licensee(s) to minimize the negative impact on children released from employment as a result of implementation or enforcement of the Code.

      4. Forced Labor: There shall not be any use of forced prison labor, indentured labor, bonded labor or other forced labor.

      5. Health and Safety: Licensees shall provide a safe and healthy working environment to prevent accidents and injury to health arising out of, linked with, or occurring in the course of work or as a result of the operation of Licensee facilities.

      6. Nondiscrimination: No person shall be subject to any discrimination in employment, including hiring, salary, benefits, advancement, discipline, termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, or social or ethnic origin.

      7. Harassment or Abuse: Every employee shall be treated with dignity and respect. No employee shall be subject to any physical, sexual, psychological or verbal harassment or abuse. Licensees with not use or tolerate any form of corporal punishment.

      8. Freedom of Association and Collective Bargaining: Licensees shall recognize and respect the right of employees to freedom of association and collective bargaining.

3. Compliance and Disclosure: Licensees (for themselves and on behalf of their contractors, subcontractors or manufacturers) shall disclose to CLC the information set forth in Sections A, B and C below.
   0. upon execution and renewal of the License Agreement and upon the selection of any new manufacturing facility which produces Licensed Articles, the company names, contacts, addresses, phone numbers, e-mail addresses and nature of the business association for all such facilities which produce Licensed Articles (the foregoing to be disclosed to CLC on a confidential basis except for the name of the Licensee and the city and country of manufacture);

   1. at least sixty (60) days prior to the end of each contract year of the License Agreement, written assurance that (i) Licensees are in compliance with the Code and/or (ii) licensees are taking reasonable steps to remedy non-compliance in facilities found not to be in compliance with the code;

   2. at least sixty (60) days prior to the end of each contract year of the License Agreement, a summary of those steps taken to remedy material violations, and/or difficulties encountered, during the preceding year in implementing and enforcing the Code at all of Licensees' facilities which produce Licensed Articles.

   3. Upon review of the information set forth in sections A, B and C above, or as the result of information obtained from other sources, a Member Institutions(s) may occasionally desire additional information about a specific licensee facility which produces Licensed Articles for said Member Institutions(s). In those instances, CLC will provide said Member Institutions(s), upon request, the confidential identifying information noted in section A regarding said Licensee facility. The Member Institutions will maintain the confidentially of said information to the extent allowed by law.

4. Verification: It shall be the responsibility of Licensees (for themselves and on behalf of their contractors, subcontractors or manufactures) to ensure their compliance with the Code. CLC, the Member Institutions and Licensees will undertake efforts during the six months subsequent to the release date of the Code to determine and clearly define the obligations associated with the development of adequate methods and training for internal and independent external monitoring. Upon completion of these consultations, a reasonable time frame shall be established for the implementation of internal and independent external monitoring. CLC, the Member Institutions and Licensees will seek to participate in the methods developed and agreed to by the White House Apparel Industry Partnership, or other appropriate industry group. CLC, the Member Institutions and Licensees will enhance monitoring activities as new monitoring options and systems are developed.
   0. In this process, CLC, the Member Institutions and Licensees are committed to the principles of:
      0. establishing clear evaluation guidelines and criteria

      1. creating a database of records and information required to determine compliance with the Code;

      2. creating an informed workforce, including communication the Code to workers in their own languages, both orally and by posting the Code in a prominent place at Licensees' facilities;

      3. providing access, on a confidential basis, to Licensees' facilities and to information required to determine compliance with the Code by independent external monitors selected by CLC in conjunction with an advisory committee of Member Institutions and agreed to by the Licensees;

      4. conducting periodic announced and unannounced visits, on a confidential basis, of an appropriate sampling of Licensees' facilities to survey compliance with the Code;

      5. providing the opportunity for employees to report noncompliance with the Code in a manner that ensures they will not suffer retaliation for doing so;

      6. establishing relationships in the countries of manufacture with labor, human rights, religious or other local institutions familiar with the conditions of workers;

      7. publicizing to consumers the content of the Code and the compliance with the Code by Licensees at all Licensees' facilities which produce Licensed Articles (excluding confidential information);

      8. applying and enforcing the principles set forth in the Code in a reasonable and consistent manner.

   1. Labor Standards Environment: In countries where law or practice conflicts with these labor standards, Licensees agree to consult with governmental, human rights, labor and business organizations and to take effective actions as evaluated by CLC, and advisory committee of Member Institutions, and the applicable Licensee(s) to achieve the maximum possible compliance with each of these standards. Licensees further agree to refrain from any actions that would diminish the protections of these labor standards.

   2. Remediation: Remedies herein apply to violations which occur after the Effective Date of the Code. If a Licensee has failed to self-correct a violation of the Code (as determined by CLC, any Member Institution(s) affected by the violation, or an agreed independent monitoring source), CLC will consult with the Licensee (for itself and on behalf of its contractors, subcontractors or manufacturers) and the affected Member Institutions(s) to determine appropriate corrective action. If agreement on corrective action is not reached, and/or the action does not result in correction of the violation within a specified reasonable time period, CLC reserves the right to (i) require that the Licensee terminate its relationship with any contractor, subcontractor or manufacturer that continues to conduct its business in violation of the Code and/or (ii) terminate its relationship with any Licensee that continues to conduct its business in violation of the Code. In either event, CLC will provide the Licensee with thirty (30) days written notice of termination. In order to ensure the reasonable and consistent application of this provision, consistent with Section V.A.9 above, CLC will seek advice from an advisory committee of Member Institutions regarding possible corrective measures and invocation of options (i) and (ii) above.

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   ¹ CLC and the Member Institutions will continue to monitor these issues and will promote studies that examine conditions and factors related to minimum and prevailing wages and employees' basic needs.

   
    

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