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TEAM AGREEMENT

This Team Agreement (this “Agreement”) is entered into between adidas America, Inc.,
an Oregon corporation (“adidas”), and Regents of the University of California, on behalf of its
Riverside campus (“School”), effective as of the first day of the Term (as defined in Section 8
below).

RECITALS

A. School fields athletic teams and programs in Baseball, Men’s Basketball, Men’s Cross
Country, Men’s Golf, Men’s Soccer, Men’s Tennis, Men’s Track & Field, Women’s
Basketball, Women’s Cross Country, Women’s Golf, Women’s Soccer, Softball, Women’s
Tennis, Women’s Track & Field, Women’s Volleyball (each, a “Team”) and retains and
supports the coaches, staff and student athletes in connection therewith (collectively,
the “Team Participants”).

B. adidas designs, manufactures, distributes, and sells athletic footwear, apparel and
related accessories and equipment through its Team Direct Sales Program (the “adidas
Team Program”). The products included in the adidas Team Program include Footwear
Products, Non-Footwear Products, and Baseball, and Softball Products (each as defined
in Section 1 below) (collectively, “adidas Products”). adidas wishes to support School and
its athletic teams and programs by, as more specifically described in this Agreement,
supplying adidas Products to School under the adidas Team Program.

C. School wishes to acquire and use adidas Products under the adidas Team Program and
consistent with the terms of this Agreement.

The parties agree as follows:

AGREEMENT

1. adidas Products.

1.1. Footwear Products. During the Term, School agrees to purchase adidas
Footwear Products directly from adidas for Team Participants’ use in accordance
with the adidas Team Program (45% off MSRP / 30% off MSRP for all miteam
footwear products). “Footwear Products” means all footwear for Team
Participants for all Team events, including competition, practices, training,
coaching, travel, recruiting and media engagements.

1.2. Apparel, Custom Uniforms, Accessories and Equipment. During the Term,
School agrees to purchase, directly from adidas, Non-Footwear Products for
Team Participants’ use in accordance with the adidas Team Program (50% off
MSRP for all apparel) for Team Participants’ use in each case for all Team events.
“Non-Footwear Products” means all apparel, uniforms (including custom
uniforms), accessories, equipment (including travel bags, headwear, socks,
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wristbands, gloves, watches, eyewear, hard goods, and inflatables) included in
the adidas Team Program, but excluding Footwear Products.

1.3. Baseball Products. Following the expiration of current Mizuno and Easton
contracts, and for the duration of the Term, School agrees to purchase, directly
from adidas, fielding gloves/mitts, batting helmets, catchers protective
equipment, gloves, bats, sticks, and shoulder pads at 37.5% off MSRP for Team
Participants’ use.

1.4. No Warranties. adidas shall not be liable for any injury or damage suffered by
School or Team Participants from wearing or using adidas Products, and School
hereby expressly knowingly and irrevocably waives all such liability, except to the
extent such injury or damage is caused by adidas’s gross negligence or willful
misconduct. ALL GOODS PURCHASED OR OTHERWISE ACQUIRED BY
SCHOOL PURSUANT TO THIS AGREEMENT ARE TRANSFERREDAS-IS.
ADIDAS HEREBY DISCLAIMS ANY AND ALL IMPLIED WARRANTIES,
INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
A PARTICULAR PURPOSE AND THOSE THAT MAY ARISE BY COURSE OF
DEALING, COURSE OF PERFORMANCE OR USAGE OF TRADE.

2. Exclusive Use.

2.1. Athletic Activities. During the Term, School shall ensure that each Team
(including all Team Participants) exclusively uses and wears adidas Products
whenever engaged in any Team event and any other athletic activities for which
such attire is appropriate, including games and practice sessions, being filmed by
motion picture or video tape, posing for photographs, and conducting or
participating in camps or clinics.

2.2. No Spatting. School shall not permit any Team Participant or any other person
to “spat”, obstruct or alter adidas’s logos and marks in any way.

Exceptions to this Section 2 require written approval by adidas. Notwithstanding the


foregoing, adidas agrees to work with any team member experiencing problems in
connection with the fit or performance of adidas footwear. In the event any team member
shall at any time suffer any physical injury, pain, or discomfort attributed to the use of
adidas footwear which is serious enough to affect the athlete’s performance or poses a
medically verified (by an independent doctor) safety risk, or if any team member has not
received adidas shoes which fit properly, then School shall so advise adidas and afford
adidas the opportunity to remedy the problem. If adidas is unable to provide such team
member with adidas footwear that can be worn satisfactorily, then adidas shall waive the
exclusivity requirement of this Section 2 in such a specific case until adidas can remedy the
problem, provided however, that such Team member shall completely cover all non-adidas
logos, trademarks and brand indicia of any non-adidas shoes while wearing such non-
adidas shoes.

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3. License. School hereby grants to adidas the right and license, during the Term to the extent
necessary for adidas’ lawful business purposes, to use School's name and trademarks
worldwide in connection with the development, promotion, marketing, advertising and sale
of adidas Products. School shall not grant any comparable right to any other person or entity
if the other person or entity for the development, promotion, marketing, advertising and
sale Footwear Products, Non-Footwear Products, and Baseball, Fastpitch and Softball
Products. This license includes the right to use School’s name, nickname, initials,
photograph, likeness, image or facsimile image, video or film portrayals and any other
means of expressing School's use of adidas Products in connection with, but not limited to,
television and radio advertisements, print advertisements, advertisements on any public or
private on-line service or the Internet, catalogs, posters, billboards, building murals, video or
audio promotional productions, promotional or marketing appearances, and hang tags and
other in-store displays. School acknowledges that no royalty shall be paid on adidas
Products provided by adidas to School’s Teams and Team Participants under this
Agreement. School retains all rights to UCR trademarks except as otherwise granted herein.

4. Promotional Merchandise.

Promotional Merchandise for Each School Year. For each School Year (defined as June 1
through May 30), during the Term, adidas shall provide the following types and values of
Promotional Merchandise:

Amount

Athletic Department $125,000

“Promotional Merchandise” means promotional merchandise orders from the adidas Team
Sales Catalog. Unused promotional merchandise amounts, as of 5:00 PM EST May 30, are
forfeited by School. As a result, promotional merchandise cannot be carried from one
School Year to the next.

5. Incentive Compensation. adidas shall provide School the following bonus amounts in any
School Year if School achieves the applicable goals during such School Year.

Goal Bonus

Annual Purchase Volume $175,000-$199,999 $2,500

Annual Purchase Volume $200,000-$224,999 $7,500

Annual Purchase Volume $225,00- $10,000

On Court Incentives:

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Men’s Basketball
 Basketball program will receive $10,000 @ retail in product for participating in the NCAA
Tournament
 Basketball program will receive $15,000 @ retail in product for reaching the 3rd Round of
the NCAA Tournament
 Basketball program will receive $25,000 @ retail in product for reaching the Sweet 16.
 Basketball program will receive $50,000 @ retail in product for reaching the Elite 8.
 Basketball program will receive $100,000 @ retail in product for reaching the Final Four.
 Basketball program will receive $200,000 @ retail in product for winning NCAA
Championship.
 Head Basketball Coach will receive $500 @ retail in product for being named Conference
Coach of the Year
 Head Basketball Coach will receive $5,000 @ retail in product for being named NCAA
Coach of the Year

Women’s Basketball
 Basketball program will receive $10,000 @ retail in product for participating in the NCAA
Tournament
 Basketball program will receive $15,000 @ retail in product for reaching the Sweet 16.
 Basketball program will receive $25,000 @ retail in product for reaching the Elite 8.
 Basketball program will receive $50,000 @ retail in product for reaching the Final Four.
 Basketball program will receive $100,000 @ retail in product for winning NCAA
Championship.
 Head Basketball Coach will receive $1,000 @ retail in product for being named
Conference Coach of the Year
 Head Basketball Coach will receive $5,000 @ retail in product for being named NCAA
Coach of the Year

Baseball Program
 Baseball program will receive $1,000 @ retail in product for winning the Conference
Championship
 Baseball program will receive $1,500 @ retail in product for reaching the NCAA
Tournament
 Baseball program will receive $5,000 @ retail in product for reaching the College World
Series
 Baseball program will receive $10,000 @ retail in product for winning the College World
Series
 Head Coach will receive $1,000 @ retail in product for being named Conference Coach
of the Year
 Head Coach will receive $2,500 @ retail in product for being named NCAA Coach of the
Year

All Other Sports

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 Team will receive $2,500 @ retail in product for going to the NCAA Tournament as a
team.
 Team will receive $5,000 @ retail in product for NCAA Championship appearance as a
team
 Team will receive $10,000 @ retail in product for winning the NCAA Team Championship
 Head Coach will receive $1,000 @ retail in product for being named Conference Coach
of the Year
 Head Coach will receive $2,500 @ retail in product for being named NCAA Coach of the
Year

6. Marketing Benefits. In all media and methods of communication listed below, School shall
identify adidas as the School’s exclusive athletic footwear, apparel, and accessory brand
permitted to advertise its products.

School shall also provide:

 adidas logo placement in all Men & Women’s Basketball, Baseball, Soccer, Softball, and
Volleyball - related media guides and game day programs

 adidas logo placement on all collateral materials used to promote UC Riverside Athletics;
including, but not limited to schedules, posters, camp brochures and coaches clinics

 Allow adidas to include (2) direct mail inserts for Athletics per year. Adidas to provide
copy and content. Adidas to pay for cost of flyer.

 Grant adidas access to your email database for up to (2) email blasts per year. Adidas to
provide copy and content. The intent will be to promote the adidas/UC Riverside licensed
merchandise outlets UC Riverside will approve design/content.

 Adidas signage at athletics locations mutually agreed upon by UC Riverside and adidas

 adidas link on http://www.gohighlanders.com homepage listing adidas as an ‘Official


Corporate Sponsor’

 2) PA Announcements during each Men & Women’s Basketball, Softball and Baseball
home games listing adidas as the official supplier/outfitter of UC Riverside Athletics
(adidas will provide copy)

 (2) Video Board Announcements during each Men & Women’s Basketball home game (if
applicable, adidas will provide)

 All Sports – Offered up to (4) NCAA/NIT tournament tickets for free (upon request)

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7. Representations and Warranties. Each party represents and warrants that such party (i) is
not party to any agreement, contract or understanding, whether oral or written, that would
prevent, limit or hinder the performance of any of its obligations under this Agreement; and
(ii) has the due and proper authority to enter into and perform its obligations under this
Agreement.

8. Term and Termination.

Term. This Agreement shall remain in effect from July 1, 2016 and until June 30, 2021, unless
sooner terminated pursuant to the terms of this Agreement (the "Term"). The prior 2011
Team Agreement between School and adidas shall terminate by mutual agreement of the
parties effective June 30, 2016.

8.1. Termination for Cause. Either party may terminate this Agreement if the other
party materially breaches this Agreement and, if such breach is curable, fails to
cure such breach within 30 days of written notice from the non-breaching party.
The parties acknowledge and agree that the breach of Section 2 constitutes an
incurable material breach of this Agreement.

8.2. Termination by adidas. adidas may, in its sole discretion, reduce the amount of
Promotional Merchandise described in Section 4 by 50% or terminate this
Agreement if (a) one or more coaches, a Team or multiple players are suspended
or otherwise subject to material disciplinary action by the NCAA, including any
disciplinary action that limits the Team’s competitiveness or prevents the Team
from participating in regular season or tournament games; or (b) in adidas’ sole
estimation one or more coaches, Teams, or multiple players engage in conduct
that reflects poorly on adidas or that harms adidas’ reputation in any way.

8.3. Right of Suspension or Reduction. If adidas believes that if School has materially
breached any term of this Agreement, then adidas may (in its sole discretion)
suspend or reduce payments of incentive compensation and/or reduce the dollar
amount of adidas Products available to School under Section according to the
following schedule:

For the first offense, there will be a 25% reduction in the amount of Promotional
Merchandise. The second offense will incur a 50% reduction in the amount of
Promotional Merchandise or termination of the Agreement. The third offense
will incur a 100% reduction in the amount of Promotional Merchandise or
termination of the Agreement, at adidas’ sole discretion. Any reductions in the
amount of Promotional Merchandise will be deducted in the following School
Year unless the breach occurs in the final year of this Agreement, in which case
the deduction will occur in the current School Year or in the first renewal year.
The decision to apply the deduction in the current School Year or the first renewal
year rests entirely with adidas.

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8.4. Effect of Termination; Survival. The right of termination under this Agreement is
not exclusive and is in addition to any and all other rights and remedies available
to the parties under applicable law. The termination of this Agreement shall not
relieve a party from liability for a prior breach of this Agreement. The provisions
of this Agreement that by their context or nature are intended to survive the
expiration or termination.

9. School Approvals.

9.1. School Approval. If School utilizes a third-party licensing agent or if School


utilizes a licensing department within the School administration, School agrees
and acknowledges that any approvals given by the School’s athletic director or
his/her designee shall be sufficient for all purposes under this Agreement.

9.2. Notice. adidas shall provide School with items for approval. School shall approve
or disapprove within ten (10) business days. If School does not provide approval
or disapproval with the allotted time, then this shall be deemed approval and
adidas may proceed with its obligations under this Agreement.

10. Covenants of Parties.

10.1. Confidentiality. Subject to applicable state public records law, the terms of this
Agreement are strictly confidential and neither party may disclose the terms
hereof to any third party without the prior written consent of the other party.
Notwithstanding the foregoing, either party may disclose the terms hereof to
such party’s professional, financial and similar advisors provided such persons are
bound by covenants or obligations prohibiting further disclosure and restricting
their use of such information to purposes consistent with the provisions of this
Agreement.

10.2. Compliance with Law. Each party shall comply with all laws, rules and regulations
applicable to it in the performance of its obligations under this Agreement,
including NCAA and Big West Conference rules and guidelines.

10.3. No Resale. During and after the Term, School agrees to not sell or distribute, or
to permit the sale or distribution of, any adidas Products acquired pursuant to this
Agreement, provided that School may sell such adidas Products to: (i) affiliates
of the School, including on-campus retail outlets that provide services or sales to
the School’s teams, athletic facilities, faculty, students and visitors; and (ii)
vendors of the School that provide services to the School’s teams or athletic
facilities but only to the extent related to vendor’s provision of service to the
School.

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11. Notices. Notices required by this Agreement shall be sent to the address listed below or to
such other address as the parties may from time to time by notice provide.

If to adidas: If to School:

adidas America, Inc. David M. Gee, CPSM, CPPO, CPPB


5055 N. Greeley Ave. Director - Procurement, Business
Portland, OR 97217 Contracts, Accounts Payable & Travel
Attn: Director, U.S. Team Sports University of California, Riverside

With a copy to: With a copy to:

adidas America, Inc. Tamica Smith-Jones, Athletic Director


5055 N. Greeley Ave. 106 Athletics and Dance Building
Portland, OR 97217 University of California, Riverside
Attn: Legal Dept. Riverside, CA 92521

Notice is effective when actually received if sent by any means that leaves a hard-copy record
in the hands of the recipient. If sent registered mail, postage prepaid, return receipt
requested, notice shall be deemed effective on the date the return receipt shows the notice
was accepted, refused, or returned undeliverable.

12. Miscellaneous.

12.1. Severability. If any provision of this Agreement is held to be invalid or


unenforceable in any respect for any reason, the validity and enforceability of
such provision in any other respect and of the remaining provisions of this
Agreement will not be in any way impaired.

12.2. Choice of Law; Venue; Jurisdiction. This Agreement shall be governed by and
construed in accordance with the laws of the State of California. The parties
hereby agree and consent to the exclusive jurisdiction and venue of any federal
or State court located in Riverside County, California.

12.3. Binding Effect. This Agreement will be binding on and inure to the benefit of the
parties and their respective heirs, personal representatives, successors and
permitted assigns.

12.4. Assignment. School may not assign, sell or transfer this Agreement or any of its
rights, interests or obligations under this Agreement without adidas’s prior
written consent and adidas may not assign, sell or transfer this Agreement or any
of its rights, interests or obligations under this Agreement without School’s prior
written consent.

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12.5. Construction. The captions used in this Agreement are provided for convenience
only and will not affect the meaning or interpretation of any provision of this
Agreement. All references in this Agreement to “Section” or “Sections” without
additional identification refer to the Section or Sections of this Agreement. All
words used in this Agreement will be construed to be of such gender or number
as the circumstances require. Whenever the words include or including are used
in this Agreement, they will be deemed to be followed by the words without
limitation.

12.6. Expenses. Except as otherwise expressly provided in this Agreement, each party
to this Agreement will bear its own expenses in connection with the preparation,
execution and performance of this Agreement and the transactions
contemplated by this Agreement. School shall be solely responsible for the
payment of all taxes or other associated expenses on any compensation or
considerations received under this Agreement.

12.7. School/adidas Relationship. Nothing contained in this Agreement shall be


construed as establishing an employer/employee, agency, partnership or joint
venture relationship between the parties.

12.8. Entire Agreement. This Agreement, together with the account completed in
connection with execution of this Agreement, all of which are incorporated into
this Agreement by reference, constitutes the entire understanding between the
parties with respect to the subject matter hereof and cannot be amended or
modified except by an agreement in writing, signed by each of the parties. All
previous understandings or agreements between the parties related to the
subject matter herein shall have no further force and effect.

12.9. UC Code of Conduct for Trademark Licensees January 5, 2000. Adidas shall
comply with the standards set forth in (University of California Code of Conduct)
attached and incorporated herein as Schedule D. Non compliance with these
standards shall constitute a material breach of this agreement.

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IN WITNESS WHEREOF, the undersigned individuals hereby certify that they are duly
authorized to execute this Agreement on behalf of the parties.

adidas America, Inc. The Regents of the University of California

__________________________________ __________________________________
Name: Mark Daniels Name: Ron T. Coley
Title: Vice President of US Sports Title: Vice Chancellor, Business &
Administrative Services

Date: Date:

__________________________________ __________________________________
Name: Monique Hawthorne Name: Bobbi McCracken
Title: Legal Counsel Title: Associate Vice Chancellor, Business &
Financial Services and Controller

Date: Date:

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UNIVERSITY OF CALIFORNIA
CODE OF CONDUCT
FOR TRADEMARK LICENSEES
(Revised January 5, 2000)

It is the policy of the University of California that trademark


licensees for goods produced with UC logos agree to follow the Code
of Conduct issued on January 5, 2000. Administrative guidelines
implementing this policy and incorporating appropriate enforcement
mechanisms shall be issued by the President of the University.
UNIVERSITY OF CALIFORNIA

Code of Conduct for Trademark Licensees


January 5, 2000

Introduction/Notice/Remediation

Standards/Compliance and Disclosure/Verification

I. Introduction: The University of California (“University”) is committed to


conducting its business affairs in a manner consistent with its employee personnel
policies and expects its licensees to conduct their business in a manner consistent
with, and follow workplace standards that adhere to this Code of Conduct (the
Code). The Code is subject to amendment to reflect any subsequently developed
standards either by the University or a national higher education organization
whose code the University chooses to adopt.

II. Notice: This Code shall apply to all trademark licensees of the University of
California. Throughout this code the term “licensee” shall include all persons or
entities who have entered a written licensing agreement with the University to
manufacture products bearing the name, trademarks and/or images of the
University. Additionally, this Code shall apply to all of the licensee’s contractors.
Throughout this Code the term “contractor” shall include each contractor,
subcontractor, vendor, or manufacturer that is engaged in a manufacturing process
that results in a finished product for the consumer. “Manufacturing process” shall
include assembly and packaging.

As a condition of being permitted to produce and/or sell licensed products bearing


the name, trademarks and/or images of the University, each licensee must comply
with this Code and ensure that its contractors comply with this Code. All
licensees and contractors are required to adhere to this Code within six months of
notification of the Code and as required in applicable license agreements.

III. Remediation: If the University determines that any licensee or contractor has
failed to remedy a violation of this Code, the University will consult with the
licensee to examine the issues and determine the appropriate measures to be
taken. The remedy will, at a minimum, include requiring the licensee to take all
steps necessary to correct such violations including, without limitation, paying all
applicable back wages found due to workers who manufactured the licensed
articles, and reinstating any worker whose employment has been terminated in
violation of this Code of Conduct. If consultation and agreed upon measures fail
to adequately resolve the violations within a specified time period, the University
and the licensee will implement a corrective action plan on terms acceptable to the

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University. The University reserves the right to terminate its relationship with any
licensee which continues to conduct its business in violation of the corrective
action plan, in accordance with the terms set forth in the licensee agreement.

IV. Standards: University licensees and their contractors must operate workplaces,
and ensure that their contractors operate workplaces, that adhere to the following
minimum standards and practices:

A. Legal Compliance: University licensees and their contractors must comply, at


a minimum, with all applicable legal requirements of the country in which
products are manufactured. Where this Code and the applicable laws of the
country of manufacture conflict or differ, the higher standard shall prevail. Such
compliance shall include compliance with all applicable environmental laws.

B. Ethical Principles: Licensees shall commit to conduct their business according


to a set of ethical standards which include, but are not limited to, honesty,
integrity, trustworthiness, and respect for the unique intrinsic value of each human
being.

C. Employment Standards: The University will do business only with licensees


whose workers are present to work voluntarily, are not at undue risk of physical
harm, are fairly compensated, and are not exploited in any way. In addition, the
following specific guidelines must be followed:

1. Wages and Benefits: Licensees and their contractors must provide


wages and benefits which comply with all applicable laws and regulations
and which match or exceed the local prevailing wages and benefits in the
relevant industry or which constitute a “living wage,” whichever provides
greater wages and benefits.

2. Working Hours: Except in extraordinary circumstances, employees shall


(i) not be required to work more than the lesser of (a) 48 hours per week
and 12 hours overtime per week, or (b) the limits on regular and overtime
hours allowed by the law of the country of manufacture; and (ii) be
entitled to at least one day off in every 7-day period.

3. Overtime Compensation: In addition to their compensation for regular


hours of work, employees shall be compensated for overtime hours at such
a premium rate as is legally required in that country, but not less than at a
rate equal to their regular hourly compensation rate.

4. Child Labor: No person shall be employed at an age younger than 15 (or


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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 work with governmental, human rights, and
non-governmental organizations, as determined by the University and
licensee, to minimize the negative impact on any child released from
employment as a result of the enforcement of this Code.

5. Forced Labor: There shall not be any use of forced labor, whether in the
form of prison labor, indentured labor, bonded labor or otherwise (March
1977 Regents’ Action, University Policy on the Procurement of Foreign-
Made Equipment, Materials, or Supplies Produced by Forced Labor,
Convict, or Indentured Labor and Administrative Guidelines issued April
7, 1998).

6. Health and Safety: Licensees and their contractors must provide workers
with a safe and healthy work environment and must, at a minimum,
comply with local and national health and safety laws. If residential
facilities are provided to workers, they must be safe and healthy facilities.

7. Nondiscrimination: Licensees and their contractors shall employ


individuals solely on the basis of their ability to perform the job.
Licensees and their contractors may not discriminate against employees in
subsequent personnel decisions. The pregnancy of an employee shall not
be used as a basis for disciplinary treatment or termination of employment.
Licensees and their contractors shall use their best efforts to reinstate
workers who have taken maternity leave to the same or similar position at
the same rate of pay and benefits. No employee or prospective employee
shall be subjected to involuntary use of contraceptives or pregnancy
testing.

8. 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 will not use or
tolerate any form of corporal punishment.

9. Freedom of Association: Licensees and their contractors shall recognize


and respect the right of employees to freedom of association and collective
bargaining with bargaining representatives of their own choice. No
employee shall be subject to harassment, intimidation or retaliation as a
result of his or her efforts to freely associate or bargain collectively.

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V. Compliance: Prior to the date of an annual renewal of a license agreement, the
licensee shall be required to provide the following to the University, as set forth in
the license agreement:

A. The company names, owners and/or officers; and addresses, phone


numbers, email addresses and the nature of the business association of all
the licensees’ contractors and manufacturing plants which are involved in
the manufacturing process of items which bear, or will bear, the name,
trademarks and/or images of the University;

B. Written assurances that it and its contractors adhere to this Code (except
that in the initial phase-in period, licensee must provide such written
assurances within six months of receipt of this Code); and

C. A summary of the steps taken, and/or difficulties encountered, during the


preceding year in implementing and enforcing this Code at each site.

VI. Disclosure:
A. The company names, owners, and/or officers, addresses, and nature of the
business association, including the steps performed in the manufacturing process,
of all the licensees’ contractors and manufacturing plants which are involved in
the manufacturing process of items which bear, or will bear, the name, trademarks
and or images of the university shall be made public information.

B. The Licensee shall be required to report immediately to the University any


changes in its business operations which materially affect the application of this
Code, such as the selection of a new factory. This information will also be made
publicly available.

VII. Verification: It shall be the responsibility of each University licensee to ensure its
compliance with this Code, and to verify that its contractors are in compliance
with this Code.

Clearly defined methods of internal monitoring, training and independent external


monitoring have not yet been determined by the University and licensee. The
University and its licensees shall undertake efforts to determine and clearly define
the obligations associated with the development of adequate training and
monitoring methods, including establishment of a reasonable time frame within
which compliance measures, including internal monitoring and independent
external monitoring, will begin.

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