RETAIL PRODUCT LICENSE AGREEMENT THIS RETAIL PRODUCT LICENSE AGREEMENT (this ?Agreement?), dated as of October 9, 2017 (the ?Effective Date?), is an Agreement between NIKE USA, Inc, a corporation organized under the laws of the state of Oregon, having its principal place of business at One Bowerman Drive, Beaverton, Oregon 97005-6453 or ?Licensee?) including its business divisions, Brand Jordan and NIKE Golf), IMG College Licensing LLC, a Georgia limited liability company, having its principal place of business at 1075 Peachtree Street Suite 3300, Atlanta, Georgia 30309 as agent on! behalf of the University of Washington (the Collegiate Institution). WHEREAS, the Collegiate Institution is the exclusive owner of its Licensed Marks (as de?ned - below); and WHEREAS, the Collegiate Institution has authorized IMGCL as its agent to administer the Collegiate Institution?s trademark licensing program on the Collegiate Institution?s behalf, which authorization includes the authority to enter into this Agreement; and WHEREAS, Licensee and its business divisions, Brand Jordan and NIKE Golf, desire to use the Licensed Marks and related designs in connection with the manufacture, marketing and sale of the Licensed Articles in the Licensed Territory (as such terms are de?ned below); and WHEREAS, the Collegiate Institution desires to grant Licensee a license for such use pursuant to the terms and conditions of this Agreement. NOW THEREFORE, for and in consideration of the mutual covenants and undertakings hereinafter set forth and other good and valuable consideration, it is agreed as follows: 1. DEFINITIONS. In addition to terms de?ned elsewhere in this Agreement, the following terms shall have the following respective meanings: 1.1 ?Affiliate? means any corporation or other entity that directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with Licensee. The term ?control? means the power to direct or cause the direction of the management and policies of a person through the ownership of voting securities. 1.2 ?Distribution Channels? mean the channels of distribution described in Appendix D. 1.3 ?Exclusive Licensed Articles? mean any product listed on Appendix 0?2 which bears Licensed Marks. 1.4 ?Licensed Articles? means, collectively, Exclusive Licensed Articles and Nonwexclusive Licensed Articles. 1.5 ?licensed Marks? means: the trademarks, service marks, trade dress, team names, nicknames, abbreviations, city/state names (when such city/stare names are used in a context that makes reference to the Collegiate Institution or is intended to create the impression that the Licensed Articles hearing such city/state names are associated with the Collegiate Institution), color schemes (when such color schemes are used in combination with other identi?able Collegiate Institution indicia and/or symbols), uniform designs and styles, distinctive landmarks, mascots, seals, and other symbols or designs associated The University of Washington? IMGCL NIKE Retail Product License Agreement with'or referring to the Collegiate Institution including, without limitation, those marks listed on Appendix any Collegiate Institution Slogans (as defined below), and and any new, additional or replacement marks, symbols, designs or indicia as the Collegiate Institution may, from time to time, adopt or use. 1.6 ?Licensed Territogy? means the 50 United States of America, the District of Columbia, Puerto Rico, United States territories and possessions, and United States military bases worldwide. 1. 7 ?Manufacturers? means Licensee contractor manufacturers and their subcontractors, that produce or assemble Licensed Articles (including Licensed Article packaging that bears the Licensed Indicia) ready for retail and/or public consumption. 1.8 ?Material Breach? means: any breach which causes or may cause substantial harm to the Collegiate Institution or Licensee, as applicable, or will substantially deprive the Collegiate Institution or Licensee, as applicable, of the bene?t it reasonably expected under this Agreement, an aggregate of non?material breaches by the Collegiate Institution or Licensee, as applicable, where the cumulative effect of such breaches satis?es the standards for materiality under subsection of this de?nition; and any breach by either the Collegiate Institution or IMGCL of Section 22. 1.9 ?Net Sales? means the total gross wholesale invoiced selling price including the royalty amount, less lawful quantity trade discounts actually allowed and taken as such by customers and shown on the invoice, less any credits for returns actually made, less sales taxes, and less prepaid nanSportation charges on Licensed Articles shipped by Licensee from its facilities to the purchaser. There shall be no other deductions allowed including, without limitation, deductions for direct or indirect costs incurred in the manufacturing, distributing, selling, importing or advertising (including cooperative and other advertising and promotional allowances) of the Licensed Articles, nor shall any deductions be allowed for non?collected or uncollectable accounts, commissions, cash or early payment discounts, or any other costs. In the case of sales of Licensed Articles by Licensee to a Licensee Af?liate that is a retail seller to the public, the sales price shall be the price regularly charged by Licensee to their respective bona ?de third party wholesale customers for a sale of similar quantity of such Licensed Articles. ?Net Sales? shall be computed by Licensee?s accounting system, guidance for which is established by generally accepted accounting principles, and provided that it conforms to the de?nition herein. 1.10 Marks? means the well?known and famous NIKE name, the Swoosh Design, the JUST DO IT tagline, the NIKE AIR Design, the Basketball Player Silhouette (?Jumprnan?) Design, Sport Specialties, and any other trademarks, logos or brands now or hereafter owned and/or controlled by NIKE, Inc. or Licensee. 1.12 tin-exclusive Licensed Articles? mean any product listed on Appendix (3-1 which bears hicensed Marks; 1.13 ?Premiums? mean any Licensed Articles that Licensee sells or gives away for the purposes of promoting, publicizing or increasing the sale of its own products or services, or promoting, publicizing or increasing the sale of the products or services of. any third party. Premiums shall not include Royalty Exempt Product or Licensed Articles described in the last sentence of Section 1.14 ?Royalty Exempt Product" means Licensed Articles which: Licensee or its Af?liates uses as samples for quality control, sourcing, premproduction, salesperson, product developer or similar purposes; are ?comp? or ?promo? product sold to any Licensee Af?liate or given directly to third parties for marketing and related purposes (but not for consumer or trade promotions), including, but not limited to, product provided pursuant to product placement agreements, or product given to music, television, 2 The University of Washington? IMGCL i NIKE Retail Product License Agreement entertainment or sports personalities for marketing purposes; (0) product Licensee provides to the Collegiate Institution or IMGCL as samples; Licensee provides to the Collegiate Institution pursuant to a promotional, sponsorship, product supply, or similar agreement; or Licensee sells or provides to any accounts or any customers listed on Appendix B-l as exempt with respect to the Collegiate Institution, which list the Collegiate Institution may, from time to time, modify by at least 90 days prior written notice to Licensee. 1.15 ?Royalty Perio means the 12?month period beginning on July 1 and ending on June 30 of the following calendar year and each 12?month period thereafter during the Term. 1.16 ?Collegiate Institution Slogans? mean any slogans, phrases or related marks created or utilized by the Collegiate Institution and/or any of its athletic teams, events, venues or other athletic?related activities or institutions. 2. GRANT OF LICENSE. 2.1 License. (21) Subject to the terms of this Agreement, the Collegiate Institution, through its authorized agent IMGCL, hereby grants Licensee a non-exclusive license to use its Licensed Marks in connection with the manufacturing, importation, marketing (including but not limited to marketing using social media), distribution and sale of the Nonsexclusive Licensed Articles in the Distribution Channels within the Licensed Territory and, if applicable (ii) an exclusive license to use its Licensed Marks in connection with the manufacturing, importation, marketing (including but not limited to marketing using social media), distribution and sale of the Exclusive Licensed Articles in the Distribution Channels within the Licensed Territory. IMGCL and the Collegiate Institution retain the right to grant other licenses or rights for use of the Licensed Marks in connection with the manufacturing, importation, marketing, distribution and sale of Non?exclusive Licensed Articles. In addition, the Collegiate Institution retains the right to use and license its Licensed Marks in connection with the manufacturing, importation, marketing, distribution and sale of Non?exclusive Licensed Articles. (0) Licensee may, from time to time, request the addition of other products to the Non?exclusive Licensed Articles set forth in Appendix C-l for the Collegiate Institution or (ii) to the Exclusive Licensed Articles set forth in Appendix 0-2. The Collegiate Institution shall not be required to grant any such request but shall evaluate such request based upon royalties, service models, institutional image and all other relevant factors that are appropriate for the requested additional products. If the Collegiate Institution grants such request, the addition of such products shall be reflected in an amendment to this Agreement. In addition to the rights under Section, 2.1(c) and unless otherwise prohibited by any contractual or legal obligation of the Collegiate Institution, if the Collegiate Institution wishes to grant exclusive or send?exclusive license(s) for any other products, including but not limited to competition, athletic, athletically inspired, athleisnre, and performance footwear, apparel and equipment, not included in the Licensed Articles set forth in. Appendices C-I 02 (?Additional Product Rights?), the Collegiate Institution shall give Licensee a reasonable opportunity to submit to the Collegiate Institution and/or IMGCL a proposal for Licensee to receive a grant of such right(s). The foregoing shall also apply to any ?product category management? or other programs the Collegiate Institution and/or IMGCL may offer. 3 The University of Washington? IMGCL NIKE Retail Product License Agreement 2.2 NIKE and Other Marks. (21) Licensee may use the NIKE Marks in a manner determined by Licensee on the Licensed Articles and in any marketing andfor packaging materials in connection therewith, subject to approval as outlined in subsection 4.3 below. Notwithstanding anything to the contrary in this Agreement, NIKE Marks may be featured on the exterior of Licensed Articles in a manner g. size and location) consistent with past practices, (ii) the NIKE Marks shall be displayed in a visible manner (for example, on the front plane of'a polo shirt), and retail products that are a direct replica of the on?field or on?court products will be allowed to have identical placement of NIKE Marks (eg. size and location) as the on? ?eldlon-court items. The Collegiate Institution acknowledges that Licensee may also want to use any sport?specific or other marks created by the National Collegiate Athletic Association post season bowl games, the CFP Semininal and National Championship Game,?or any successor national championship football game, or the marks of any athletic conference(s) which the Collegiate Institution is a part of on the Licensed Articles and in any marketing and/or packaging materials in connection therewith. However, in order for Licensee to use the marks of said entities, Licensee recognizes that it must separately obtain a license to such sport?specific or other marks from the NCAA, conference(s), bowl(s) or CFP. 2.3 Third Party Manufacturers. The license granted under this Section 2 includes the right to have third parties manufacture the Licensed Articles (including third parties located outside the Licensed Territory or in countries where the Collegiate Institution has not registered its Licensed Marks). Licensee shall be responsible for ensuring that the Licensed Articles are manufactured in accordance with the terms of this Agreement and shall ensure that any third? party manufacturers utilized by Licensee to produce the Licensed Articles produce the Licensed Articles only as and when directed by Licensee and do not distribute, sell or supply the Licensed Articles to any person or entity other than Licensee. 2.4 Prenuums, Collegiate Institution Mailing Lists and NCAA Rules. Licensee shall not use any of the Licensed Articles as Premiums unless Licensee receives prior written authorization from the Collegiate Institution or shall Licensee provide Licensed Articles as Premiums to any third party whom Licensee knows intends to use the Licensed Articles as Premiums. Licensee is not permitted, without the Collegiate Institution?s prior written minimization, to knowingly promote or market any Licensed Articles by means of a direct mailing or any other direct solicitation to a list of alumni, students, parents, athletic centrihutors, faculty or staff, or other similar groups maintained, compiled by, or generated by the Collegiate Institution. rl?he foregoing restriction shall not apply to any product or other merchandise allotments or sales by Licensee or any of its Af?liates to the Collegiate Institution?s athletic departments, programs, camps, coaches and/or staff. Licensee recognizes and agrees that any person who has collegiate athletic eligibility cannot have his or her name andlor facsimile utilized on any commercial product without the express written permission of the Collegiate Institution and/or the NCAA. Therefore, in conducting licensed activity under this Agreement, Licensee shall not encourage or participate in any activity that utilizes the name and/or facsimile of such an athlete on any conunercial product without the express written permission cf the Collegiate Institution and/or the NCAA. 2.5 Other Obligations of Licensee. 4 The University of Washington? I NIKE Retail Product License Agreement Licensee shall not use the LiCensed Marks for any purpose other than as authorized in this Agreement. In addition, Licensee shall advertise, distribute and sell Licensed Articles only in the Distribution Channels, or to distributors for sale in the Distribution Channels. Licensee recognizes that marketing efforts for Licensed Articles are important to the success of this program and Licensee, if requested, will reasonably assist IMGCL with such efforts by its participation when, in Licensee?s judgment, such participation is consistent with Licensee?s marketing plans and objectives related to Licensed Articles. 3. CONTINUATION OF MODIFICATION OF APPENDICES, 3.1 Continuation of Rights. The rights granted to Licensee under this Agreement shall continue regardless of whether the Collegiate Institution ceases to use IMGCL as its agent. In such an event, this Agreement shall remain in full force and effect and Licensee shall direct all royalty payments, statements, and line art approval requests and samples directly to the Collegiate Institution or such new agent or representative as the Collegiate Institution may designate. 3.2 Modi?cation of Appendices. IMGCL must provide prior written notice of any request by the Collegiate Institution to modify the Appendices listed in the table below. Licensee shall have the amount of time provided in the table below to implement changes and sell through Licensed Articles (if applicable) with respect to the Collegiate Institution: Appendix Royalty Rate for Non? Upon receipt of written notice from IMGCL, Licensee exclusive Licensed Articles shall have ninety (90) days to implement any modi?cations to Appendix A-l - Royalty Rate for Non? exclusive Licensed Articles and such changes to royalty rates shall be effective on the first day of the next calendar quarter following the ninety (90) day implementation period above. Appendix Licensed Marks Upon receipt of written notice from IMGCL, Licensee shall have one hundred eighty (180) days to implement any modi?cations to Appendix. Licensed Marks and to sell through any non-conforming Licensed Articles. Licensee may request additional time to sell through nonconforming Licensed Articles in the event work in process and seasonal market cycles do not adequately allow Licensee to sell through Licensed Articles in process or in inventory within the time provided above. IMGCL shall not unreasonably delay or deny such a request to extend such sell through time. Appendix B?l, Exemption Policies; Upon receipt of written notice from IMGCL, Licensee provided, however, that any such shall have ninety (90) days to implement any modi?cation may not remove subsections modifications to Appendix Exemption i?olicies. l.l4(a) through from Licensed Articles that are exempt from royalties Appendix C-l Non-exclusive Licensed Upon receipt of written notice from IMGCL, Licensee Articles shall have one hundred eighty (180) days to implement any modi?cations to Appendix 01 Nonesclusive Licensed Articles and to sell through any non? conforming Licensed Articles. Licensee 5 The University of Washington? IMGCL I NIKE Retail Product License Agreement may request additional time to sell through non- conforming Non?exclusive Licensed Articles in the event work in process and seasonal market cycles do not adequately allow - Licensee to sell through non? conforming NonwExclusive Licensed Articles in process or in inventory within the time provided above. IMGCL shall not unreasonably delay or deny-such a request to extend such sell through time. 4. QUALITY. NOTICES. APPROVALS AND SAMPLES. 4.1 Product Quali? and Standards. The quality and style of the Licensed Articles shall he at least as high as the quality of similar goods pres?ently sold or distributed by the Licensee in the Licensed Territory and approved by the Collegiate Institution, (ii) be suitable for their intended purpose, not cause harm when used with ordinary care, and (iv) not infringe or violate the rights of any third party, provided, however, that Licensee makes no representations or warranties of any kind with respect to any infringement or violation of the rights of any third parties arising out of or related to the Licensed Marks as approved in accordance with the requirements of this Agreement. . Licensee shall use the Licensed Marks on all Licensed Articles, as well as labels, containers, and packages for the Licensed Articles (?Packaging?) and in all print and online advertisements promoting Licensed Articles (?Advertising Materials?) in accordance with the trademark guidelines set forth in Section 7.2. Notwithstanding the foregoing, Licensee is not obligated to include the Licensed Marks on Packaging. Licensee shall comply with all applicable laws, regulations, standards and procedures relating or pertaining to the manufacture, use, advertising, distribution or sale of the Licensed Articles. 4.2 Of?cial Label. Licensee must af?x to each Licensed Article, or its Packaging or, where practical, any printed Advertising Materials an ?Of?cially Licensed Collegiate Products? tag or label, which label may also include a NIKE Mark(s), in the form prescribed by MGCL and as shown on the attached Appendix (?O?icial Label?), or, if no form prescribed by IMGCL, in a form determined by Licensee. 4.3 Approval of Artwork. Prior to the sale of any Licensed Article and prior to the publication of any Advertising Materials, Licensee shall submit to IMGCL for Collegiate Institution approval, at Licensee?s expense and in the format reasonably required by IMGCL, line art for each proposed Licensed Article and Packaging and representative examples of Advertising Materials as the same would be distributed, sold or, in the case of Advertising Materials, published. IMGCL shall use best efforts to obtain approval within ten (10) business days from its receipt of the line art, which approval may not be unreasonably withheld. If the Collegiate Institution approves in writing or via electronic system the line art, the same shall be accepted to serve as an example of quality for that Licensed Article, Packaging andfor Advertising Materials, and production quantities may be manufactured, used, sold and distributed by Licensee in conformity with the approved line art. 4.4 Samples. Upon request of IMGCL or Collegiate Institution, Licensee shall submit to either IMGCL or Collegiate Institution one (1) sample of a Licensed Article and/or a representative example of Advertising Materials manufactured, distributed, published or sold by Licensee to examine and test to 6 The University of Washington? Ill/[Gm I NIKE Retail Product License Agreement assure compliance with the quality and standards under this Agreement. Any request for a sample must be made by IMGCL or the Collegiate Institution at the time line art is submitted from IMGCL to the Collegiate Institution for approval. Each sample shall be shipped in its usual Packaging together with all labels, tags, and other materials usually accompanying the item. Licensee shall bear the expense of manufacturing and shipping such sample to the destination designated by IMGCL or Collegiate Institution. Upon the reasonable reignest of IMGCL or Collegiate Institution, Licensee will, subject to cost considerations and availability of inventory, also provide samples of Licensed Articles to IMGCL and the Collegiate Institution. 4.5 Non?Conforming Articles. If IMGCL noti?es Licensee of any material defect in any Licensed Article, Packaging and/or Advertising Materials, Licensee shall have thirty (30) days from the date it receives such notice to correct such defect (which correction, if Licensee chooses, may include removing the defective Licensed Article, Packaging and/or Advertising Materials from the marketplace). Defective Licensed Articles, Packaging and/or Advertising Materials in Licensee?s inventory shall not be distributed or sold until such time as Licensee corrects the defect. Notwithstanding subsection above, Licensee shall have the right to sell any Licensed Articles including but not limited to ?seconds or ?irregulars? at Licensee?s normal closeout distribution channels such as Licensee?s employee stores, Licensee?s factory outlet stores and/or factory outlet stores that are owned or operated by third parties (collectively, ?Closeout Channels?). Any defective products that are not ?seconds or ?irregulars? shall, upon request of IMGCL, be removed from the marketplace and destroyed or donated to Licensee?s then?current charitable partner, at Licensee?s expense. 4.6 Inspection of Distribution Facility. Upon thirty (30) days prior written notice, IMGCL or its duly authorized representatives shall have the right, once per year during the term of this Agreement, to inspect the distribution premises of Licensee from which the Licensed Articles are distributed to ensure that. standards of quality, as reflected in the approved line art or in any samples of Licensed Articles, are being maintained. Any such inspection shall take place during such facility?s normal business hours, be subject to such reasonable security and confidentiality requirements as Licensee may reasonably require, and not unreasonably interfere with Licensee?s operations or prevent or delay Licensee from meeting its delivery obligation to its customers or otherwise cause Licensee to incur ?chargebacks? or other costs or expenses in meeting (or being delayed from meeting) such obligations. 4.7 Code of Conduct. Licensee shall comply with the Special Agreement Regarding Labor Standards and Corporate Responsibility, which is attached hereto as Appendix G. Failure to do so will result in'breach of contract and result in termination of license agreement. 5. ROYALTY. 5.1 Royalm Rate. Licensee agrees to pay the Collegiate Institution a royalty on the Net Sales of all Nonexclusive Licensed Articles bearing the Licensed Marks of the Collegiate Institution at the rate for the Collegiate histitution as set forth on Appendix A-l Licensed Articles shall be deemed to have been sold when invoiced or, if not invoiced, when shipped or paid for, whichever occurs first. 5.2 Royalty Payments and Statements. (3.) All royalties payments under Section 5.1 shall be sent to as follows: quarterly royalty payments shall be made within forty-five (45) days following the end of each calendar quarter; provided, however, that any royalty payments with respect to Licensed Articles sold to any United 7 The University of Washington; NIKE Retail Product License Agreement States military bases in any foreign countries shall be made within sixty (60) days of the end of the applicable Royalty Period. With each quarterly royalty payment, Licensee shall submit to IMGCL a royalty statement in the form attached hereto as Appendix (a ?Royalty Statement?) showing the quantity, description, and Net Sales of the Licensed Articles distributed and/or sold during the preceding calendar quarter, (ii) Licensed Article style number, royalty rate, and (iv) royalty amount. Royalty Statements shail be submitted whether or not they reflect any sales. Licensee acknowledges development of its Retail Information Portal and will work. with IMGCL to include speci?c information contained within Retail Information Portal. Licensee will not be obligated to include information that is burdensome to obtain, given Licensee? system limitations, or information that is con?dential or proprietary to Licensee. Licensee shall pay interest at the rate of one and one?half percent per month, compounded on a basis, or the maximum-rate allowed by law, if lower, on any undisputed royalty payment due under the Agreement that remains unpaid after such payment becomes due. The receipt or acceptance by IMGCL of any Royalty Statement, or the receipt or acceptance of any royalty payment made, shall not prevent the Collegiate Institutions from subsequently challenging the validity or accuracy of such statement or payment in any subsequent audit pursuant to Section 6. 5.3 FOB Sales. If a customer of Licensee proposes to purchase Licensed Articles FOB the manufacturing source or participate in other arrangements which would result in such customer paying less for the Licensed Articles than Licensee?s regular selling price to the trade, Licensee will use reasonable efforts to provide prior written notice and seek approval from for such sales. 6. RECORDS AND RIGHT TO AUDIT. Licensee shall keep, maintain and preserve at its principal place of business during the term of this Agreement and for at least three (3) years following expiration of the Royalty Period to which they relate, complete and accurate books, accounts and records (including customer invoices and itemization of any permitted deductions andlor exemptions) covering all sales of Licensed Articles (the ?Records?) in a manner such that the information contained in the Royalty Statements can be reasonably determined. Not more than once per calendar year, IMGCL and/or its authorized representatives shall have the right, upon sixty (60) days prior written notice and at sole cost and expense, to inspect and audit the Records during Licensee?s normal business hours. At request, Licensee will provide IMGCL and/or its authorized representatives the abovemreferenced invoice detail information in an Excel CID-ROM or disk format. Where necessary, IMGCL or its representatives may request working copies of audit materials from Licensee?s designated personnel. IMGCL and/or its representatives shall have reasonable and fully adequate access to said Records for impaction and audit purposes at Licensee?s premises, provided that IMGCL and its representatives shall comply with Licensee?s reasonable security requirements that do not interfere with the audit, (ii) such access may not unreasonably interfere with the normal operation of Licensee?s business, any representative of IMGCL who conducts or is otherwise involved in any audit shall, prior to receiving any Records from Licensee, sign a mutually acceptable con?dentiality agreement, and (iv) Licensee will be permitted to have its personnel present during the audit. (0) If any audit reveals an underpayment by Licensee of any royal-ties owed under. this Agreement, IMGCL shall provide Licensee with written notice containing a detailed description and 8 . The University of Washington NIKE Retail Product license Agreement supporting documentation of such underpayment. Licensee shall pay any veri?ed underpayment of royalties plus interest. In the event such an underpayment is greater than five percent of the aggregate royalties due under all of Licensee?s then?current license agreements with IMGCL, Licensee shall also pay the reasonable out-of?pocket costs of the audit actually incurred by IMGCL 7. OWNERSHIP AND USE OF LICENSED MARKS. 7.1 Ownership; Authority to License. IMGCL represents and warrants to Licensee, on behalf of the Collegiate Institution, that: the Collegiate Institution to the best of its knowledge is the sole and exclusive owner of its respective Licensed Marks, and (ii) has the right to use such Licensed Marks including, without limitation, the right to grant use of such Licensed Marks to Licensee pursuant to this Agreement; to the best of the Collegiate Institution?s knowledge there are no oppositions or cancellation proceedings pending against any of its respective Licensed Marks in the United States Patent and Trademark Office; (0) to the best of the Collegiate Institution? 3 knowledge Licensee? use of the Licensed Marks in accordance with the manner approved pursuant this Agreement in accordance with the terms of this Agreement will not infringe on or violate the rights of any third party; and, IMGCL has full power and authority to execute and deliver this Agreement in the name and on behalf of the Collegiate Institution. 7.2 Trademark Guidelines. Wherever appropriate, the Licensed Marks shall he used as a proper adjective, and the common noun for the product shall be used in conjunction with the Licensed Marks. The proper symbol to identify the Licensed Marks as a trademark the symbol if the Licensed Marks is registered or the ?trn? symbol if not so registered) and/or copyright legend [Date] [Collegiate InstitutionD shall be placed adj acent to each Licensed Mark. The Licensed Marks of the Collegiate Institution shall also be used in accordance with other trademark guidelines as may be set forth on Appendix with respect to the applicable Licensed Marks, provided such guidelines do not con?ict with any other provisions of this Agreement. 7.3 Covenant Not to Assert Ownership. Licensee makes no claim to any goodwill associated with the Licensed Marks. Licensee will not in any manner represent that it has any ownership in the Licensed Marks or in any registration thereof, and will not knowingly in any way do or cause to be done any act or thing contesting or in any way impairing any part of such right, title and interest. Licensee therefore agrees that, except for the rights granted herein, it has no interest in or ownership of the Licensed Marks, and further agrees not to register or attempt to register, in any jurisdiction, any of the Licensed, Marks. Nothing in this Agreement gives Licensee any right, title, or interest in the Licensed Marks except the right to use the Licensed Marks in accordance with the terms of this Agreement. Licensee?s use of the Licensed Marks shall inure to the benefit of the Collegiate Institution. . 7.4 No Combined Use. Except as permitted by this Agreement or as otherwise approved in writing by the Collegiate Institution or IMGCL, Licensee agrees not to use any other trademark, service mark, trade name, logo, symbol or device in combination with any Licensed Marks nor shall Licensee use 9 The University of Washington- NIKE Retail Product License Agreement any of the Licensed Marks or any confusingly similar mark as, or as part of, a trademark, Service mark, trade name, ?ctitious name, company or corporate name. 7.5 Licensee recognizes the great value of the good will associated with the Licensed Marks and acknowledges that such good will belongs to the Collegiate lnStitution, and that such Licensed Marks have inherent and/or acquired distinctiveness Licensee shall not, during the term of this Agreement or thereafter, dispute or contest the property rights of the Collegiate Institution, dispute or contest the validity of this Agreement, or use the Licensed Marks or any similar mark in any manner other than as licensed hereunder. 7.6 Assistance Licensee agrees to assist IMGCL in the protection of the rights of the Collegiate Institution in and to the Licensed Marks and shall provide, at reasonable cost to be borne by IMGCL and/or the Collegiate Institution, any evidence, documents, and testimony concerning the use by Licensee of the Licensed Marks, which IMGCL may request for use in obtaining, defending, or enforcing rights in any Licensed Marks or related application or registration. Licensee shall notify in writing of any infringements by others of the Licensed Marks of which it is aware. IMGCL and the Collegiate Institution shall have the right to determine whether any action shall be taken on account of any such alleged infringements. Licensee shall not institute any suit or take any action on account of any such alleged infringements without ?rst obtaining the written authorization of IMGCL and the Collegiate Institution. Licensee agrees that it is not entitled to share in any proceeds received by IMGCL or the Collegiate Institution (by settlement or otherwise) in connection with any formal or informal action brought by IMGCL, the Collegiate Institution, or other entity. 7.7 0 Limitation of Rights Regarding NIKE Marks or Intellectual Prom. Notwithstanding the foregoing, no provision of this Agreement shall prohibit or limit (or be construed as prohibiting or limiting) in any way Licensee or any of its Af?liates from (3.) commencing any action of its own with respect to any infringement of any of the NIKE Marks or other intellectual property of Licensee or any of its Af?liates, obtaining, defending or enforcing rights in such NIKE Marks or other intellectual property, or filing any trademark applications with the United States Patent and Trademark Of?ce or with any other governmental entity for such NIKE Marks or other intellectual property. 8. INDEMNIFICATION. 8.1 By Licensee. Licensee agrees to defend, indemnify and hold harmless IMGCL, the Collegiate Institution, and their respective of?cers, agents, and employees from any claims, demands, causes of action or damages, loss, liabilities, costs and expenses, including reasonable attorney?s fees, arising out of or relating to any claim brought by a third party (a ?Loss?) that arises out of any unauthorized use by Licensee of the Licensed Marks or any breach by Licensee of any of its representations, warranties, covenants or obligations contained in this Agreement, the manufacture, advertising, promotion, distribution, export, sale and offering for sale by Licensee of the Licensed Articles, the use by Licensee of Packaging and/or Advertising Materials; and any unauthorized use or infringement of any patent, copyright, trademark or other proprietary right of a third party by Licensee in connection with the Licensed Articles, Packaging and/or Advertising Materials. Nomithstanding the foregoing, Licensee? obligations under this Section 8.1 shall not apply to any Loss arising out of any claim that use by Licensee of the Licensed Marks in aCCordance with and approved pursuant to this Agreement infringes on, misappropriates, or otherwise violates the rights of any third party, (ii) Licensee? compliance with any requirements of aodlor the Collegiate Institution, or any negligent act or omission of IMGCL or the Collegiate Institution or any of their respective of?cers, agents, or employees. 10 The University of Washington IMGCLI NIKE Retail Product License Agreement 8.2 By and the Collegiate institution. and, to the extent permitted by law, the Collegiate Institution, each agree to defend, indemnify and hold harmless the Licensee, its Af?liates and their respective of?cers, agents, and employees from any and all Losses arising out of the Collegiate Institution? 3 ownership of or authority to license use of the Licensed Marks and any breach by IMGCL or the Collegiate Institution of any of its representations, warranties, covenants or obligations contained in this Agreement. obligation to So defend, indemnify and hold harmless Licensee and its af?liates will be limited to rights to obtain a remedy from the Collegiate Institution. 8.3 . Procedure. ?Hie indemni?cation obligation of a party (the ?Indenmitor?) under this Section 8 is subject to the party or person entitled to such indemnity (the ?Indemnitee?) complying with the following conditions: the Indentmitee notifying the lndemnitor of the Loss (except that an Indemnitee?s failure to notify the Indemnitor will not limit, impair or otherwise affect the Indemnitee?s rights under this Section 8 unless the Indemnitor is prejudiced by that failure, and then only to the extent of the prejudice); and the lndernnitee gives the hidenmitor full and complete authority (including Without limitation, settlement authority) and reasonable assistance (including without limitation, reasonable access to information in the Indemnitee?s possess-ion) for the defense. However, the Indemnitor?s rights under this Section 8.3 are contingent on its agreement that it will not settle any claim without the Indemnitee?s prior written consent unless that settlement includes a full and final release of all claims against the Indemnitee and does not impose any obligations on the 9.. INSURANCE Licensee represents and warrants that the NIKE group of companies to which Licensee is a member (the Group?) has the financial resources to honor Licensee?s risk liability under this Agreement and that the NIKE Group currently carries excess liability insurance for more than one million dollars ($1,000,000) self?insured retention and (ii) Licensee losses under the SIR are paid from a funded reserve account. In?the event Licensee is unable to continue to self?insure at, or beyond, such levels as set forth above, or elects not to self-insure, it shall notify IMGCL of same and obtain insurance as prescribed in subsection below. In the event Licensee elects not to, or is unable to, self?insure at or beyond, the levels as set forth in subsection above, Licensee will obtain and maintain general liability, property damage, and product liability insurance providing coverage of at least one million dollars ($1,000,000) per occurrence for personal and advertising injury, bodily injury or death of persons and damage to property that result directly or indirectly from any Licensed Article, Packaging or Advertising Materials. Such substitute insurance coverage shall provide adequate protection for the IMGCL, the Collegiate Institution, and their respective of?cers, agents and employees, as additional insured parties against any claims, demands, or causes of action and damages, including reasonable attorney?s fees, arising out of any unauthorized use of or infringement of any patent, copyright, trademark or other proprietary right of a third party by Licensee in connection with the Licensed Articles, Packaging, Advertising Materials andlor designs covered by this Agreement, (ii) defects or alleged defects or deficiencies in said Licensed Articles, Packaging, Advertising Materials and/or designs or the use thereof, false advertising, fraud, misrepresentation or other claims related to the Licensed Articles, Packaging, Advertising Materials and/or designs not involving a claim of right to the Licensed Marks, (iv) Licensee?s unauthorized use of the Licensed Marks or any breach or alleged breach by Licensee of any of its representations, warranties, covenants or obligations contained in this Agreement, libel or slander against, or invasion of the right of privacy, publicity or property of, or violation or misappropriation of. any other right of any third party, andlor (vi) agreements or alleged agreements made or entered into by Licensee to effectuate the terms of this Agreement. Such substitute insurance coverage shall not be canceled or materially changed in form without at least thirty (30) days written notice to IMGCL. ii The University of Washington? IMGCL I NIKE Retail Product License Agreement . 10. TERM AND TERMINATION. 10.1 Term. The term of this Agreement (the ?Terrn?) will begin on the Effective Date and, unless earlier tenninated as provided in Section 10 of this Agreement, shall expire June 30, 2019. Upon execution of this Agreement, Collegiate Institution shall provide written notice to IMGCL of the expiration date of the University of Washington All-Sports Sponsorship Agreement and during the Term of the Agreemeng. Collegiate Institution shall provide IMGCL with written notice of any change in the expiration date pursuant to termination, renewal or extension or otherwise, This Agreement may be extended upon mutual written agreement of the parties. 10.2 Termination by Collegiate Institution. The Collegiate Institution may terminate this Agreement upon the occurrence of one or more of the following events: Licensee breaches section or fails to deliver any required Royalty Statement, and fails to cure this default within forty?five (45) days from receipt of notice from IMGCL. Licensee breaches subsection 6(b) or 6(c) of this Agreement, and fails to cure such breach within forty-five (45) days from receipt of notice from IMGCL. Licensee makes any assignment for the bene?t of creditors, or ?les any petition under any federal or state bankruptcy statute, or is adjudicated bankrupt or insolvent, or if any receiver is appointed for its business or property, or if any trustee in bankruptcy shall be appointed under the laws of the United States government or the several states. Licensee attempts to grant or grants a sublicense not otherwise permitted by this Agreement without the prior written authorization of IMGCL, or breaches Section? 16 of this Agreement. Licensee distributes or sells any Licensed Articles, above incidental quanti?es, outside the authorized Distribution Channels for such Licensed Articles, or distributes or sells any Licensed Articles to any third party that Licensee knows intends to distribute or sell such Licensed Articles outside the authorized Distribution Channels for such Licensed Articles, and fails to cure such breach within forty? five (45) days from written receipt of notice from Licensee distributes or sells any Licensed Articles outside the Licensed Territory or distributes or sells any Licensed Articles to a third party that Licensee knows intends to distribute or sell such Licensed Articles outside the Licensed Territory and fails to cure such breach within forty??ve (45) days from written receipt of notice from IMGCL. Licensee knowingly manufacuires, distributes or sells any product infringing or diluting the trademark, property or any other right of the Collegiate Institution or any other party. Licensee fails to maintain in full force and effect the insurance referred to in Section 9. Licensee manufactures, distributes or sells Licensed Articles, above incidental . quantities, of quality lower than the samples approved, or manufactures, distributes, sells or uses Licensed Articles or Licensed Marks in a manner not approved by IMGCL, and fails to cure such breach within forty- five (45) days from receipt of written notice from IMGCL. I 12 The University of Washington- IMGCL 1' NIKE Retail Product License Agreement Licensee fails to af?x to each Licensed Article, above incidental quantities, an Of?cial Label in the manner provided in Section 4.2 and fails to cure this default within forty-?ve (45) days from receipt of written notice from, IMGCL, or, if incurable, such default causes substantial harm to the Collegiate Institution or IMGCL. Licensee commits any Material Breach and fails to cure such breach within forty? five (45) days from receipt of written notice of such breach from IMGCL. 10.3 Requirements for Notice of Breach. Due to the prevalence of domestic and international counterfeiting of goods containing the Licensed Marks and NIKE Marks, any notice of a violation of this Agreement by IMGCL or the Collegiate Institution alleging Licensee?s violation of Sections 102(k), or 10.2(1) shall not be effective as a notice of such breach to Licensee and Licensee shall have no obligation to respond to such notice if all of the following items and conditions are not met with respect to such notice: Each notice must contain a detailed description of the Licensed Article or violating product; and Each notice must have a detailed description of the time, quantity, location, and vendor where such violation occurred; and Each notice must contain a physical sample(s) of each Licensed Article or violating product in order to allow Licensee to validate the authenticity of such item. Photographs of such items . without a physical sample will be acceptable, however, if Licensee is unable to authenticate product based on photographs, no further action will be required by Licensee under this Agreement Upon receipt of notice complying with all of the above, Licensee shall validate the authenticity of such alleged Licensed Articles or violating product and shall, within the cure periods of such violations, communicate with IMGCL or the Collegiate Institution, as the case may be, to demonstrate that such violation was cured or to provide notice to IMGCL or the Collegiate Institution that such Licensed Articles or violating products were verified to be counterfeit items after examination by Licensee. If such Licensed Articles or violating products are determined to be counterfeit items by Licensee, no fmther action shall be required by Licensee under this Agreement. 10.4 IMGCL shall have the right to terminate this Agreement upon written notice to Licensee without cause with respect to the Collegiate Instimtion in the event that the Collegiate Institution directs IMGCL to terminate this Agreement on an annual basis or otherwise. This termination shall be without prejudice to any other rights may have, whether under the provisions of this Agreement, in law,.in equity or otherwise. 1.0.5 Licensee shall have the right to terminate this Agreement upon ninety (90) days prior written notice to IMGCL and Collegiate Institution without cause. This termination shall be without prejudice to any other rights Licensee may have, whether under the provisions of this Agreement, in law, in equity or otherwise. 10.6 Termination by Licensee. Licensee may terminate this Agreement as to the Collegiate Institution if the Collegiate Institution or IMGCL commits a Material Breach and fails to cure such breach, if curable, within sixty (60) days from receipt of written notice of such breach from Licensee. ll. DUTIES UPON TERMINATION 13 The University of Washington IMGCL Retail Product license Agreement 11.1 Effect of Expiration or Termination. After expiration or termination of this Agreement for any reason: Except as provided in Section 11.2 or otherwise expressly authorized in writing by IMGCL or the Collegiate Institution, Licensee shall immediately discontinue the manufacture, advertising, use, distribution and sale of all Licensed Articles, Packaging and Advertising Materials bearing the Licensed Marks of the Collegiate Institution, and shall have no further right to manufacture, advertise, use, distribute or sell such Licensed Articles, Packaging or Advertising Materials. Licensee shall furnish to IMGCL a statement showing the number and description of Licensed Articles with instinct to the Collegiate Institution that Licensee has on hand or in process. Upon termination of this Agreement with respect to the Collegiate Institution, any unpaid balance of royalty payments owing and due under this Agreement with respect to the Collegiate Institution shall be due and payable. 11.2 Disposal of Inventory. After expiration or termination of this Agreement for any reason (other than a termination pursuant to Section Licensee may, for a period of one hundred twenty (120) days (the ?Disposal Period?), continue to market, sell and distribute its inventory of Licensed Articles with respect to the Collegiate Institution, and (ii) complete the manufacture and, upon completion, market, sell and distribute, all Licensed Articles with respect to the Collegiate Institution for which Licensee has accepted a customer order or that are otherwise in-process at the time of such expiration or termination. During the Disposal Period, Licensee shall deliver all Royalty Statements and royalty" payments due with respect to the Collegiate Institution in accordance with Section 5 and shall comply with all other terms and conditions of this Agreeme?nt' in connection with its manufacture, marketing, sale and distribution of Licensed Articles with respect to the Collegiate Institution. Following expiration of the Disposal Period, Licensee shall coordinate with the Collegiate Institution on the disposal of any unsold Licensed Articles in an agreed upon matter. 11.3 Effect on Other Agreements. Any expiration or termination of this Agreement shall not affect any rights Licensee or any of its Af?liates may have under any other agreement between Licensee (or any of its Af?liates) and the Collegiate Institution including, without limitation, any Direct Agreement (as de?ned in Section 15). 12. MATERIALITY. In the event of a claimed Material Breach or other breach by Licensee, including but not limited to a dispute in an amount less than One Hundred Thousand Dollars IMGCL shall allow 30 days to discuss a resolution via telephone or email correspondence with Licensee?s Director of Licensing before IMGCL issues any written notice of breach to Licensee, unless the Collegiate Institution directs IMGCL otherwise. Thereafter, Licensee shall not be deemed to be in breach of this Agreement unless IMGCL ?rst has delivered written notice to Licensee, specifying in detail the nature of the breach, and Licensee shall have failed to remedy the breach within the time speci?ed this Agreement, or within thirty (30) days following Licensee receipt of such notice, whichever 18 greater. 14 The University of Washington NIKE Retaii Product License Agreement 13. REMEDIES. The Collegiate Institution, IMGCL and Licensee each acknowledge that a Material Breach of this Agreement may result in immediate and irremediable damage to the Collegiate Institutionor Licensee, as applicable, and that money damages. alone may be inadequate to compensate the Collegiate Institution or Licensee. Therefore, in the event of a Material Breach or threatened Material Breach of this Agreement by the Collegiate Institution, IMGCL or Licensee, the Collegiate Institution (either directly or through IMGCL as its agent) or Licensee, as applicable, may, in addition to all other remedies, immediately seek to obtain and enforce injunctive relief prohibiting such breach or compelling speci?c performance. 14. SEVERABEHY. The determination that any provision of this Agreement is invalid or unenforceable shall not invalidate this Agreement, and the remainder of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 15. ENTIRE AGREEMENT MODIFICATION AND WAIVER. This Agreement and its Appendices constitute the entire agreement and understanding between Licensee, IMGCL and the Collegiate Institution and cancels, terminates, and supersedes any prior agreement or understanding, written or oral, relating to the subject matter hereof between Licensee, IMGCL and the Collegiate Institution, There are no representations, promises, agreements, warranties, covenants or understandings other than those contained herein. None of the provisions of this Agreement including, without limitation, any Appendices to this Agreement, may be waived, amended or modified, except as expressly provided in this Agreement or expressly stated in writing signed by the Collegiate Institution or IMGCL, on the one hand, and Licensee on the other. Without limiting or altering the foregoing, the parties acknowledge and agree that any inconsistent, additional in different terms in any notice, policy, schedule or other document issued by the Collegiate Institution or IMGCL will not have any force or effect unless and until it has been executed in the manner provided in the immediately preceding sentence. In the event of any inconsistency or con?ict between the terms of this Agreement and its Appendices, thetenrns of this Agreement shall control. Notwithstanding the foregoing, the parties acknowledge and understandthat Licensee may have entered into or may, from time to time, enter into one or more promotional, sponsorship, product supply, license or similar agreements directly with the Collegiate Institution and/or its athletic department not through IMGCL), which agreements may, among other things, grant Licensee certain rights with respect to the Collegiate Institution?s Licensed Marks (a ?Direct Agreement?), (ii) this Agreement shall not constitute (or be construed as an amendment or modi?cation of any such Direct Agreement, any rights granted to Licensee with respect to the Collegiate Institution?s Licensed Marks under such Direct Agreement shall be in addition to the rights granted under this Agreement, and (iv) in the event of any con?ict between the rights granted to Licensee under this Agreement and the same rights granted to Licensee under a Direct Agreement, the rights under such Direct Agreement shall control. No Written waiver by any party shall excuse the performance of any not other than those specifically referred to therein. However, failure of a party to require the performance of any term in this Agreement, or the waiver by any party of any breach, ?shall not prevent subsequent enforcement of such terrnnor be deemed a waiver of any subsequent breach. 16. ASSIGNABILITY. 15 The University of Washington? IMGCL I NIKE Retail Product License Agreement This Agreement is personal to Licensee. Except as provided in this Section 16 and except for assignments by Licensee to any of its Affiliates under a corporate restructuring or reorganization, neither this Agreement nor any of Licensee?s rights shall be sold, transferred or assigned by Licensee without or the Collegiate Institution?s prior written approval and no rights shall devolve by operation of law or otherwise upon any assignee, receiver, liquidator, trustee or other party. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the party?s successors and assigns. l7. ENFORCEMENT BY OR AGAINST COLLEGIATE The Collegiate Institution is entitled to enforce its respective rights in its respective Licensed Marks and the terms of this Agreement directly against the Licensee. Licensee is entitled to enforce the terms of this Agreement directly against the Collegiate Institution. 18. SURVIVAL. Each provision of this Agreement that expressly or by its nature provides for rights, obligations or remedies that extend beyond the expiration or earlier termination of this Agreement, will survive and . condone in full force and effect after this Agreement expires or is earlier terminated. 19. GOVERNING LAW. This Agreement shall be governed by the laws of the State of Georgia. 20. NOTICES AND PAYMENTS. Any notice shall be delivered personally or sent by certified mail (postage prepaid, return receipt requested), facsimile, the receipt of which is con?rmed by continuation document, email, con?rmed by email receipt con?rmation notice, or by a recognized US overnight courier, and shall be sent to the addresses given below, or such other addresses as may be designated in writing during the term of this Agreement. Each notice will be deemed to have been received by the party to whom it was addressed when delivered if delivered personally, on the ?fth business day after the date of mailing if mailed, or on the date of?cially recorded as delivered according to the record of delivery if delivered by overnight courier. To or The Collegiate Institution: Collegiate Licensing Company, LLC Attn: SVP and Managing Director 1075 Peachtree Street, Suite 3300 Atlanta, GA 30309 AND Collegiate Licensing Company, LLC Attn: Legal Dept. 1075 Peachtree Street, Suite 3300 Atlanta, GA 30309 To Licensee: NIKE USA, Inc. Attn: NCAA Business Director 16 The University of Washington NIKE Retail?Product License Agreement One Bowerman Drive Beaverton, OR 97005?6453 AND NIKE USA, Inc. Attn: General Counsel One Bowerman Drive, Beaverton, OR 97005-6453 21. NO PARTNERSHIP OR FRANCHISE. Nothing in this Agreement shall be construed to place Licensee and the Collegiate Institution or Licensee and IMGCL in the relationship of partners, joint venturers or agents and, except with respect to IMGCL as the authorised agent for the Collegiate Institution, neither party shall have the power to obligate or bind the other or the Collegiate Institution in any manner whatsoever. Nothing in this Agreement shall give, or is intended to give, any rights of any kind to any third parties. Neither nor the Collegiate Institution is in any way a guarantor of the quality of any product produced by Licensee. Licensee shall neither state nor imply, directly or indirectly, that Licensee or its activities, other than under this license, are supported, endorsed or sponsored by IMGCL or the Collegiate Institution. 22. CONFIDENTIALITY . Except as may he required by law, neither IMGCL nor Collegiate Institution shall disclose to any third party the terms of this Agreement or the Licensee?s sales information, marketing strategies or plans, or any other information in whatever form disclosed to, or observed or learned by, IMGCL or Collegiate Institution or their respective representatives under this Agreement including, without limitation, all information disclosed to, or observed or ascertained by, IMGCL or Collegiate Institution or their respective representatives during any audits or inspections permitted by this Agreement. The parties acknowledge that the terms of this Section 22 shall not prohibit disclosures of information by IMGCL to personnel of the Collegiate Institution who need to know such information or by Collegiate Institution to personnel of IMGCL who need to know such information. Prior to making any legally required discloSure of the terms of this Agreement, IMGCL and Collegiate institution shall notify Licensee of the pending disclosure and, if legally permissible, allow Licensee the opportunity to redact any proprietary or confidential information from the Agreement prior to disclosure. This Section 22 shall survive expiration or any termination of this Agreement. 23. EXTENSION TO NIKE AFFEIATES. IMGCL acknowledges that one or more Af?liates of Licensee may seek a nonexclusive license and an exclusive license to use the Licensed Marks. IMGCL confirms that it will use the general terms and conditions of this Agreement, where applicable, as the basis of its definitive agreement with such Affiliate. Notwithstanding, the above, IMGCL and the Collegiate Institutions shall not be obligated to contract with any NIKE Af?liate under this Section. An engagement between IMGCL and such NIKE Af?liate shall give rise to a direct contractual relationship between such Af?liate and IMGCL, the terms of which are evidenced by such agreement. Communications, fees, disputes and related matters shall be between IMGCL, Collegiate institution and such NIKE Af?liate, and Licensee shall have no obligations, liabilities or responsibilities thereunder. 17 The University of Washington? IMGCL I NIKE Retail Product license Agreement 24. MISCELLANEOUS. When necessary for appropriate meaning, a plural shall be deemed to be the singular and singular shall be deemed to be the plural. Section headings are for convenience only and shall not add to or detract from any of the terms or provisions of this Agreement. This Agreement may be executed in counterparts. Each Counterpart will be considered an original, and all of then}, taken together, will constitute a single Agreement. Signatures transmitted electronically by portable document fennel (pdf) file or facsimile shall be binding for all purposes hereof. IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the date ?rst above NIKE USA, Inc. g: - By: Tit? f?ef?s fest {?l?cm Name: Title: Naive LL: 3: we 3 's fhszii'ie?irw rs gauges; 18 COLLEGIATE LICENSING COMPANY, LLC, on behalf of itself and as authorized agent for the Collegiate Ins?otutio By: Name: Title: $149 Kimono Ee/gs/m The University of Washington NIKE Retail Precinct License Agreement APPENDIX The University of Washington Royalty Rate and Advance Payments for Non-exclusive Licensed Articles Royalty Rate is established at an escalating rate based on the total of all Net Sales of UW Licensed Articles duriug a Royalty Period, but will be reviewed quarterly with UW. If a dollar threshhold listed below in this Aggendix A-l is met during a quarterly Royalty Period, the corresponding Royalty Rate listed below will become the effective Royalty Rate for all Net Sales beginning the subsequent quarter. For the avoidance of doubt, once a Royalty Rate has been achieved, under no circumstance shall that Royalty Rate be reduced in subsequent Royalty Periods regardless of Net Sales performance. However, the rate for subsequent Royalty Periods may be increased pursuant to this Appendix Awl if a higher rate is achieved in accordance with the below targets. Non?Exclusive Licensed Articles 13% Begins immediately for all Net Sales subsequent to the Effective Date. 14% $5 million 15% $7.5 million The University of Washington Husky Throwback Program 15% Renegotiable at $7.5 million Advance Payments Not applicable 19 The University of Washington NIKE Retail Product License Agreement I The University of Washington Royalty Rate and Advance Payments for Exclusive Licensed Articles Exclusive Liceased Articlas Not applicable Advance Payments Not applicable 20 The Univegsity 0f Washingtom IMGCL I NIKE Retail Prodimt License Agreemnt APPENDIX LICENSED AND HUSKY THROWBACK PROGRAM MARKS M?wmme uugum Bubs" want-me mam ?mlat??m?toolgw Fault-It 0mg??! uuwm ml] Nmmi?ny?c F'Ahml?c Pair-Rim: uu RA in; ?gs'm??ga? UNEVERSITY a; WASHINGTON. 9 Wamm 2? of WASHINGTON.25 BE 110mm Hum 2? Irma: 2? mum ?9 "mam 3? 3? mnmwu NFDR may um - mm: mm mm "shimmy mom; I NEATION FREE 1 SEDTE: Thwart: n! (in ?himaity ?When In central-d Inlet: hing pram-nu by MG Collage lineman. Any an: of his mark: wli main w?m Ippmni irm lM? (Rabat ?aming :4 ?atrium mean- NOTE: The mm: at Unmly cl Walks-mks: are mind ?we: 1 W9 mum ?mm Comm Mimi: WW Museumew mm: ?155mm ?named mm Tmcmaghiaumu norm 2] The University of Washington? EMGCL i NIKE Retaii Product License Agreement APPENDIX B-l ROYALTY EXEMPTION POLICIES The University of Washington has no exemptions. 22 The University of Wasi?ngton? IMGCL NIKE Retaii Product License Agreemeni APPENDIX C-l Non-exclusive Licensed Articles Licensee Name: NIKE USA Inc. License Type: Standard License Licensed Articles: 01A Men'slUnisex T?shirts 1. Men?s/Unisex T~shirts (short sleeve-cotton) 3. Men's/Unisex Tushirts (short 4. Men's/Unisex T-shirls (short sleeve-blend) 5. Men's/Unisex T-shirts (long sleeve-cotton) 6. Men's/Unisex T-shirts (long 7. Men's/Unisex T~shirts (long sleeve?blend) 8. Men?s/Unisex Tank Tops (cotton) 9. Men?s/Unisex Tank Tops 10. Men's Unisex Tank Tops (blend) 0113 Men?s/Unisex Outerweg t. Men's/unisex Jackets 2. Men's/Unisex Flainwear 3. Men's/Unisex Polar fleece (non?performance) 4. Men?s/Unisex Windshirts 5. Men?s/Unisex Windsuits Warm-ops 010 Men?s/Unisex Other Headwear Men?s/Unisex Knit Caps 2. Men?s/Unisex Visors 3. Men's/Unisex Bucket Caps 4. Men's/Unisex Straw Hats 5. Men?s/Unisex Other Headwear Styles 01 Men's/Unisex Combo-Packaoed Goods 2. Men?s/Unisex multiple apparel product combo-pack 3. Metre/Unisex T-shirt/Headwear combo-pack 01 Jerseys/Uniforms 1. Replica Football Jerseys 2. Replica Basketball Jerseys Short sets 3. Replica Hockey Jerseys 4. Replica Baseball Jerseys 5. Replica Shooting Shirts/Tear?away Pant 23 The University of Washington- IMGCL I NLKE Retail Product License Agreement 11. Authentic Hockey Jerseys 12. Authentic Baseball Jerseys 13. Authentic Shooting Shirts/Tear?away pants 14. Authentic Jerseys?other 01G Youth Apparei 1. T-shirts (sizes 5420) 4. Jersey/Uniforms (sizes 5?20) 5. Cheerleader Uniforms (sizes 5?20) 6. Beachwear (sizes 5-20) 7. Outerwear (sizes 520) 8. Boy?s Fashion Tops Bottoms (sizes 5-20) 9. Girl?s Fashion Tops Bottoms (sizes 520) 10. Fleece Tops Bottoms (sizes 520) 11. Girls Boys GolflPolo Shirts (sizes 5-20) 13. Athletic Apparel (Sizes 5-20) 15. Misc. Apparel (sizes 5-20) 17. Fleece Tops (sizes 520) 18. Fleece Bottoms (sizes 5-20) 01 Men's Fashion Annexe! 1. Men?s GolflPolo Shirts 2. Men's Denim Dress Shirts 4. Men?s Rugby Shirts 5. Men's Henleys Thermals 6. Men?s/Unisex Turtlenecks 7. Men's Sweaters 8. Men?s/Unisex Non-Fleece 1/4 Zip Top 10. Men's/Unisex Athletic Shorts 11. Men's/Unisex Fashion Bottoms 12. Men's Beachwear 14. Men's/Unisex Scrubs 01l Women's T-shirts 1. Women's T-shirts (short sieevecotton) 6. Replica Jerseys - Other 7. Vintageffhrowback Jerseys 8. Fashion Jerseys 9. Authentic Footbail Jerseys 1U. Authentic Basketball Jerseys Shorts 01.} Men's/Unisex Fieece t. Men?s/Unisex Fleece Tops (crew neck cotton) . Men?s/Unisex Fleece Tops (crew . Men?slUnisex Fleece Tops (crew neck?blend) . Men's/Unisex Fleece Tops (hooded?cotton) . Men's/Unisex Fleece Tops . Men's/Unisex Fleece Tops (hooded-blend) . Men's/Unisex Fleece Bottoms (cotton) . Men's/Unisex Fleece Bottoms . Men's/Unisex Fleece Bottoms (blend) 01L Men's/Unisex Performance Aggarel 1. Men's/Unisex Performance T?shirts (Loose) 2. Men's/Unisex Performance T-shirts (Compression) 3. Men's/Unisex Performance Bottoms (Loose) 4. Men's/Unisex Performance Bottoms (Compression) 5. Men's/Unisex Performance Outerwear (Heavyweight) 6. Men'slUnisex Performance Outerwear (Lightweight) 7. Men's/Unisex Performance Fieece 8. Men?stnisex Performance Golf/Polo shirts 01 Clothing Accessories 1. Gioves/Mittens/M uffs 2. Socks 4. Cold Weather Knit Scarves 5. Headbands/wristbands 6. Fashion Scarves 01N Men?s/Unisex Structured Closed Back Headwear 1. Men's/Unisex Structured Closed Back Headwear 2. Structured Closed Back Performance Headwear 010 Merits/Unisex Structured Stretch Fit Headwear 1. Men?s/Unisex Structured Stretch Fit Headwear 2. Structured Stretch Fit Performance Headwear 01fa Men?s/Unisex Unstructured Closed Back Hegdwear 1. Men?s/Unisex Unstructured Closed Back Headwear 24 The University of Washington- I NIKE Retail Product. License Agreement 20. Women?s T?shirts (short 21. Women?s T-shirts (short sleeve-blend) 22. Women?s T-shirts (long sleeve~cotton) 23. Women's T?shirts (long 24. Women's T?shirts (long sleeve?blend) 01B Men?s/Unisex Adiustable Non?Wgoi Headwea 1. Adjustable Non-Woof Headwear 2. Adjustable Non-Wool Performance Headwear 018 Women?s Fleece Tops Bottoms 1. Women's Fleece Tops (crew neck - cotton) 2. Women's Fleece Tops (crew 3. Women?s Fleece Tops (crew neck-blend) 4. Women's Fleece Taps (hooded?cotton) 5. Women's Fleece Tops 6. Women's Fleece Tops (hooded-blend) 7. Women?s Fleece Bottoms (cotton) 8. Women?s Fleece Bottoms 9. Women's Fleece Bottoms (blend) Women?s Outerwear 1. Women's Jackets Vests 2. Women's Rainwear 3. Women's Polar Fleece (non-performance) 01 Women?s Headwear 1. Women's Baseball Caps 2. Women's Fashion Headwear 01V Women's Jerseys Performance Apgarel 1.. Women's Authentic Jerseys 2. Women's Repiica Jerseys 3. Women?s Fashion Jerseys 4. Women?s Performance Golf/Polo Shirts 5. Women's Performance Tops 6. Women?s Performance Bottoms 01W Women's Fashion Tops 1. Women's Golf/Polo Shirts (non-performance) 2. Women's Tank Tops 3. Women's Woyen Shirts 4. Women's Knit Tops 5. Women's Sweaters 2. Unstructured CEosed Back Performance Headwear 019 Men?s/Unisex Adiustable Wool Blend Headwear 1. Men's/Unisex Adjustable Wool Blend t?leadwear 2. Adjustable Wool Biend Performance Heedwear 01X Women's Fashion Bottoms 1. Women?s Shorts 2. Women?s Pants/Jeans/Leggings 3. Women's Skirts 4. Women's Dresses 020 Personal Accessories 1. Eyewear 11. Tote Bags 16. Eyewear Accessories 05E Publishing 8. Marketing Advertising Materials USA Sports Eguigment 1. Backpacks/Fanny Packs 2. Baseball/Softball Accessories 3. Basketball Accessories 6. Football Accessories 8. Golf Bags 11. Golf Bails 12. Athletic Bags 18. String Backpacks 0W Women?s Loungewear/Activewear/Misc. 6. Women's Exercise Tops (nomperiormeince) 7. Women?s Exercise Bottoms (non?performance) 8. Women's Swimwear Cover-Ups to. Women's Combo?Packaged Products 11. Women's Sports Bras/Bandeau Tops 02A Jewelm 3. Watches 6. Bracelets Charms 068 Balls 1. Coilectible Balls (full-sized mini) 2. CompetitionlLeather Balls 3. Rubber Balis - Full Size 4. Rubber Balls - Mini 07o Infant Products 1. Booties Shoes 07E Footwear 2. Sandals 3. Sneakers 4. Footwear - Misc. 5. Flip Flops 7. Cowboy Boots 07F Affinity Cards 3. Gift Cards ?Performance Apparel? means apparel that has unique construction andlor fabrications moisture-wicking) that assist the wearer during exercise and general athletic tasks in all types of weather. exciuding heavy outerwear and rainwear. These special characteristics must also be marketed as a feature of the product through hangtags, jock tags, or other labels on the product. 25 The University of Washingtom IMGCL 1' NEKE Rated: Product License Agreement Authorized Brand(s): Nike USA institution: The University of Washington 01A-3 DEA-5 (NA-6 01A-7 018?1 018-2 013?3 018?4 018-5 010-1 010-2 010-3 010?4 010-5 01D-2 01D-3 GTE-1 ENE-2 01E-3 O1E-4 D1E-5 O1E-7 O1E-8 016-1 016-5 01G-6 01G-8 01G-9 01G- 10 '11 01(3- Oil-H 01H-5 (NH-6 01H- DTHOil?1 Oil?20 Oil-21 (HI-22 O1I-24 O1J-2 01J-3 O1J-4 01J-5 O1J-8 01L-1 011:2 01L-3 01L-4 O1L-6 O1L-7 (TIL-8 (NM-2 (NM-4 (NM-5 010-1 010~2 (HP-1 010-1 010-2 (NR-2 018-4 018-2 018-4 018-5 015-6 018-7 018-8 018-9 01T-1 01T-3 01w O1U-2 01w Div-2 01v-3 (aw-4 01V-5 01w-1 01W-3 (YEW-4 02Wv5 01X-2 01X-3 Dix-4 01Y-6 02A-3 02A-6 02C-1 1O 11 020- 020- 05E-8 GSA-1 GSA-3 GSA-8 OBA- 0584 063-2 063-3 068-4 11 16 11 12 18 0713-1 07E-2 UTE-3 (WE-4 07E-5 O7E-7 26 The University of Washingtem IMGCL NIKE Retail Product License Agreemnt APPENDIX 02 Exclusive Licensed Articles Not Applicable 27 The University of Washington? IMGCL NIKE Retail Product Limnse Agreement Aw DISTRIBUTION CHANNELS . Campus/Local (CAMP): A retail store whose primary function is serving the university community, including 1) independently owned fan/gift shops located in the same town/city as the university; 2) store members of NACS (National Association of College Stores) that carry 80% of their store inventory for one university; 3) stores that carry textbooks and 80% of their non-textbook inventory for one university; 4) stems that carry 80% of their total company inventory for one university; or 5) university-owned outlets, including student owned/operated stores. Examples include campus and off?campus bookstores, athletic department team stores, campus/athletic concessionaires, local fan/gift shops in the same town/city as the university, and university-owned hotels/ golf course shops/visitor centers or similar entities. Restricted (REST): Internal departments of the Collegiate Institution that purchase Licensed Articles for internal use only by the Collegiate Institution and not for resale. Examples include departmental suppliers, uniform manufacturers, and similar forms of non?retail internal use. For purposes of this Agreement, Restricted Channel does not include bookstores, other institutional retail outlets, student clubs, and student organizations. Related Retail/Direct? (RRET): Sales of Licensed Articles directly to the consumer through a retail storefront owned and/or operated by the Licensee, any af?liate or subsidiary of Licensee, or any other person, firm, or corporation related in any manner to Licensee or its of?cers, directors, or major stockholders, or through direct consumer solicitations catalog, direct mail, direct response advertising, local craft shows, etc.) by Licensee, any af?liate or subsidiary of Licensee, or any other person, ?rm, or corporation related in any manner to Licensee or its of?cers, directors, or major stockholders. Please note that IMGCL and the Collegiate Institutions approve sales into this distribution channel on a casc-by?case basis and only under unique circumstances. Team Dealer (TDLR): Institutional or . league sales of sporting goods products through established distribution territories outlined by sporting goods companies. Team Dealers may or may not have a "retail" showroom, generally have office and warehouse space to conduct business, and often have traveling sales people to call on schools, leagues, organizations, and teams for distribution of products ranging from team uniforms to sports equipment. Off-Price (OPC): A retail store that offers or deals in consumer goods, typically close-out or liquidated branduname products, at discounted prices. Department Stores (DPT): A retail store, typically part of a chain of stores, which sells a wide range of products Without a predominant merchandise line. Department stores typically sell products including apparel, furniture, appliances, electronics, and other select lines or products such as cosmetics, jewelry, toys, and sporting goods. Better Department Stores/Boutiques (BDPT): A high end 01' elite department store that sells. a wide range of products without a predominant merchandise line, or a small shopping outlet that Specializes in elite and fashionable items, such as clothes and jewelry. Golf Specialty A retail store or golf pro shop that sells predominantly golf related products including bags, balls, clubs, shoes, clothing, etc. These stores or shops do not have an affiliation with a Collegiate Institution. Sporting Goods/Sports Specialty/Fan Shops (SGSS): A retail store that specializes in selling licensed sports apparel, team sports apparel and/or sports equipment. 28 The University of Washington IMGCL Retail Product license Agreement Specialty Mid-Tier (SMT): A retail store that typically specializes in a specific range of merchandise and related items other than licensed sports apparel. Most stores have an extensive selection of items they specialize in; and staff-provides high levels of service and expertise. This channel encompasses Inidntier retailers that don?t qualify for another distribution channel and therefore contains a wide range of retail formats. InternetlTV/Catalog (ITC): Retailers in the ITC channel focused primarily on commerce through the Internet g. ., GSI, FansEdge, etc?) via shopping networks QVC, HSN or Shop NBC, etc?) via Nike corn, and published catalogs that are mailed directly to the consumer. Amusement Park (AMP): Sales offered by a theme park which may have rides, games and other entertainment attractions. This channel also encompasses family entertainment centers Dave 8: Busters, Chuck E. Cheese, etc), and arcades. Grocery/Drug/Convenience Stores (GDC): A retail store that 1) primarily provides a wide variety of food and consumables, but also sells health and beauty care items, pharmaceuticals, and related products and services, or 2) primarily offers pharmacy services but can also sell a wide variety of consumer products, or 3) is usually located near busy roads or interstates and provides a convenient location to purchase a wide variety of consumable goods and gasoline services gas stations and truck stops). Super Center/Wholesale Clubs (SCWC): A retail or warehouse style store, typically larger than 50,000 square feet, that 1) offers one-stop shopping for customers by providing a wide range of consumer products at discounted prices, or 2) requires customers to pay a membership fee in order to shop for discounted merchandise. Specialty Mass (SMC): A retail store that 1) offers one or a few categories of merchandise and sells a Wide selection of merchandise in those categories at discounted prices, or 2) is typically smaller than 50, 000 square feet and offers a wide range of consumer products at discounted prices This channel encompasses mass retailers that don? qualify for another distribution channel and therefore contains a wide range of retail formats including stand?alone vending machines. 29 The University of Washington- MGCL i NIKE Retail Product License Agreement Licensee Name: Nike USA Inc. Autherized Brands: NIKE BRANDS Authorized Channels: Institution Approved Distribution Channels CAMP REST RRET TDLR OPC DPT BDPT GLFS SGSS SMT AMP CDC SCWC SMC University 30 The University of Washington? IMGCL 1' NIKE Reta? Product License Agreement APPENDIX ROYALTY STATEMENT The Collegiate Licensing Company Royalty Reporting Form [Team Name] Report Reporting Period: Licensee: Product Category 01A 018 01C 01D 01E 01H 01H 01H 0101V- A 01V- A 01V- 8 .8 01W 01W 01W 01W 01X 01X 01Y 06A 07E Apparel Apparel Apparel Apparel Apparel Apparel Apparel Apparel Apparel Apparel Apparel Apparel Apparel Apparel Apparel Apparel Apparel Apparel Apparel Apparel . Apparel Apparel Apparel Apparel Apparel Apparel Apparel Apparel Apparel . Apparel Non?Apparel Non-Apparel Nike Team Sports APR 2014 JUN 2014 Nike Team Sports Sub?Category T?s Tanks Outerwear Headwear Bundles Jerseys/Uniforms Other Polo Shirts Shorts T:Shirts Adult Fleece Performance Accessories Fleece Tops Bottoms Other Outerwear Polar Fleece Jackets Vests Baseball Caps Fashion Headwear Authentic Jerseys Replica Jerseys Fashion Jerseys Performance Golf/Polo Shirts Performance Apparel Golf/Polo Shirts (h0n~perlorrnance) Tank Tops Knit Tops Sweaters Shorts Pants, Jeans Leggings Miscellaneous Equipment Footwear 31 1 The University of washington? IMGCL NIKE Retail Product License Agreement IMGCL CODE Total Sales Rate Royalty Due $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 APPENDIX MGCL OFFICIAL LABEL 32 The University of Washington IMGCL i NEG: Retail Product License Agreement APPENDIX SPECIAL AGREEMENT REGARDING LABOR STANDARDS AND CORPORATE SOCIAL RESPONSIBILITY This is an Agreement between NIKE USA, Inc, a corporation organized under the laws of the state of Oregon, having its principal place of business at One Bowerman Drive, Beaverton, Oregon 97005? 6453 (?Licensee?), and College Licensing LLC, a Georgia limited liability company, having its principal place of business at 1075 Peachtree Street Suite 3300, Atlanta, Georgia 30309 as agent on behalf of the University of Washington (Collegiate Institution) WHEREAS Licensee and IMGCL, contemporaneously with their entry into this Agreement, are entering into a Retail Product License Agreement involving the use of Collegiate Institution indicia (together with all appendices, thereto, the ?License Agreement? WHEREAS the Collegiate Institution is committed to sourcing products which bear the Licensed Indicia only from licensees and manufacturers that use fair labor practices and conduct business in a socially responsible manner; WHEREAS defined terms not de?ned herein will have the same meanings as ascn'bed to such terms in the License Agreement. NOW, THEREFORE, in consideration of the parties? mutual covenants and undertakings, and other good and valuable consideration the receipt and suf?ciency of which are acknowledged, the parties agree as follows: 1. LICENSEE OBLIGATIONS Licensee agrees to the following: A. Labor Code Standards. Licensee shall ensure that all domestic or foreign parties producing Licensed Articles or applying Licensed lndicia of Collegiate Institution (?Manufacturers?) comply with the MGCL Labor Code Standards attached as Schedule I for the manufacturing of Licensed Articles under the License Agreement Labor Code Standards?). only and con?rms a shared commitment with Collegiate Institution and IMGCL to addressing labor issues in the subcontracted factories engaged to make Licensed Articles. Notvvithstanding anything to the contrary in this Agreement, the IMGCL Labor Code Standards attached to this Agreement as Schedule I, or the Licensing Agreement, the IMGCL Labor Code Standards apply, and any and all references to Licensee in the IMGCL Labor Code Standards shall be deemed to apply, exclusively to Manufacmrers. B. Factory Monitoring. Licensee engages independent third parties to conduct audits of NIKE supplier factories The Collegiate Institution has designated both the Worker Rights Consortium (WRC) and the Fair Labor Association (FLA) as itsindependent labor rights monitors. Licensee is a member of the FLA (and shall participate in one of the applicable categories) and FLA is an. independent third party monitor for the licensee. Licensee will continue to comply with its obligations to participate in and remain in good standing with the FLA under'the applicable category. Licensee and the WRC have agreed to a Protocol for Monitor Investigations of Nike Supplier Factories (?Protocol?), which is incorporated herein as Exhibit A. Licensee agrees to comply with its obligations under the terms of the Protocol for all Manufacturers. Collegiate Institution may participate in discussions facilitated by a designated college or university between Nike and the WRC en a regular basis, and at other times if concerns arise in the carrying out of any portion of this protocol. Collegiate Institution may invite other universities to participate in these discussions. C. Factory Disclosures. On not less than a quarterly basis, Licensee shall identify and provide information regarding each Manufacturer to or the Collegiate Institution designee. For each Manufacmrer, Licensee will provide the factory name, contact name, address, phone number, email address, products produced, and satiric of business association with the Licensee. Such information will be provided on an IMGCL or designated form. The Collegiate Institution reserves the right to disclose this information to third parties, without restriction as to its further distribution. D. Wages. licensee recognizes that wages are essential to meeting employees? basic needs. Licensee shall require Manufacturers to pay employees, as a floor, at least the minimum wage required by local law or the local prevailing industry wage, whichever is higher, and to provide legally mandated bene?ts. Licensee shall report annually to Collegiate Institution on its efforts to achieve a living wage standard for Manufacturer employees and contracted or 33 The University of Washington? IMGCL .1 NIKE Retail Product License Agreement subcontracted workers engaged in the production of licensed Articles. A living wage is de?ned as compensation that is sufficient to meet employees? basic needs and provide some discretionary income. E. Licensee Corporate Responsibility Licensee shall make information regarding its supply chain and corporate social responsibility policies and practices available and will collaborate with Collegiate Institution to share best practices and discuss issues of concern . F. Remediation. Licensee will use its best efforts. including all available economic leverage including exit, to cause Manufacturers to remediate any violations identi?ed by the WRC and/or FLA. To the extent that a disagreement exists between Licensee and a Collegiate Institution as to whether an identi?ed violation has been fully remediated, Licensee agrees to discuss in good faith the differences with that Collegiate Institution. IMGCL may terminate the License Agreement without cause on behalf of any Collegiate institution at the request of that Collegiate Institution, including whether the Collegiate Institution determines that Licensee has failed to effectively remediate a violation within a time period that is reasonable with respect to the nature and extent of the violation. G. Bangladesh Accords Licensees that source Licensed Articles from Manufacturers inaBangiadesh must Sign the Accord on Fire and Building Safety in Bangladesh (?Accord?) Licensee agrees to be identified among Accord signatories at httn; zilh-aniadeshaccord orsut and provide written documentation to IMGCL and the Collegiate Institution to this effect prior to sourcing Licensed Articles from Manufacuirers in Bangladesh. Licensee?s failure to comply with any of its obligations under this Section shall be considered a breach of the License Agreement. 2. TERM rl'his Agreement shall begin effect on the last date of signature below and shall terminate upon the termination, revocation, cancellation or expiration of the rights granted Licensee under the License Agreement with respect to affected Collegiate Institution(s). Any renewal(s) of said License Agreement shall constitute renewal of this Agreement. 3. The determination that any provision of this Agreement is invalid or unenforceable shall not invalidate this Agreement, and the remainder of this Agreement shail be valid and enforceable to the fullest extent permitted by iaw. 4. N0 WAIVER, MODIFICATION, ETC. This Agreement, including attachments, constitutes the entire agreement and understanding between the parties and cancels, terminates, and supersedes any prior agreement or understanding relating to the subject matter hereof between Licensee, IMGCL and the Collegiate Institution. There are no representations, promises, agreements, warranties, covenants or understandings other than those contained herein. None of the provisions of this Agreement may be waived or modified, except expressly in writing signed by both parties. However, failure of either party to require the performance of any term in this Agreement or the waiver by either party of any breach shalt not prevent subsequent enforcement of such term nor be deemed a waiver of any subsequent breach. 5. MSCELLANEOBS When necessary for appropriate meaning, a plural shall be deemed to be the singular land singular shall be deemed to be the plural The attached Schedules and Riders are an integral part of this Agreement. Paragraph headings are for convenience only and shall not add to or detract from any of the terms or provisions of this Agreement This Agreement shall be construed In accordance with the laws of the state of Georgia, which shall be the sole jurisdiction for any disputes. 34 The University of Washington IMGCL .1 NIKE Retait Product License Agreement IN WITNESS WHEREOF, the games hereto have signed this Agreement. Signatures transmitted electronically by portable document format (pdf) ?le er facsimile shall be binding for all purpeses hereof; LICENSEE: NIKE USA, Incl College Licensing, LLC if?) r? w? By: Brian Fairben By: 3?06 Hutchinson Title: NCAA Business Director Title: Sr. Vice Resident 35 The University of Washington? IMGCL I NIKE Retail Product License Agreement IMGCL Labor Code Standards Schedule I 1. Introduction: IMG College Licensing and the Collegiate Institutions represented by (?Collegiate Institutions?) are each committed to conducting their business affairs in a socially responsible and ethical manner consistent with their respective educational, research andlor service missions, and to protecting and preserving the global environment. While and the Collegiate Institutions believe that Licensees share this . commitment, IMGCL and certain Collegiate Institutions have adopted the following labor Code Standards (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 IMGCL to manufacture ?Licensed Articles? (as that term is de?ned in the License Agreement) bearing the names, trademarks and/or images of one or more Collegiate Institutions. The term ?iicensee? shall for purposes of the Code, and unless otherwise speci?ed in the Code, encompass all of Licensees? contractors, subcontractors or manufacturers which produce, assemble or package ?nished Licensed Articles for the consumer. II. Standards: Licensees agree to operate work places and contract with companies whose work places adhere to the standards and practices described below. IMGCL and the Collegiate Institutions prefer that Licensees exceed these standards. A. Legal Compliance: Licensees must comply with all applicable legal requirements of the country?es) of . manufacture in conducting business related to or involving the production or sale of Licensed Articles. Where there are differences or con?icts with the Code and the laws of the country(ies) of manufacture, the higher standard shall prevail, subject to the following considerations. 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 IMGCL, the applicable Collegiate Institution(s) or their designee, and the applicable Licensee(s) to achieve the maximum possible compliance with each of these standards. Licensees ?lrther agree to refrain from any actions that would diminish the protections of these labor standards. B. Employment Standards: Licensees shall comply with the following standards: 1. Wages and Bene?ts: 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.g 2. Working Hours: Except in extraordinary business circumstances, hourly and/or quota-based wage employees shall not be required to work more than the lesser of 48 hours per week and 12 hours overtime or 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. 3. Overtime Compensation: In addition to their compensation for regular hours of work, hourly andfor quota: based wage employees shall be compensated for overtime hours at such a premium rate as is legally required and the Collegiate 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. 36 The University of Washington- NIKE Retail Product License Agreement 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. 4. 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 IMGCL, the applicable Collegiate Institution(s) or their designee, 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. 5. Forced Labor: There shall not be any use of forced prison labor, indentured labor, bonded labor or other forced labor. 6. 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. 7. NondiScrimination: No person shall be subject to any discrimination in employment, including hiring, salary, bene?ts, advancement, discipline, termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, or social or ethnic origin. 8. Harassment or Abuse: Every employee shall be treated with dignity and respect. No employee shall be subject to any physical, sexual, or verbal harassment or abuse. Licensees will not use or tolerate any form of corporal punishment. 9. Freedom of Association and Collective Bargaining: Licensees shall recognize and respect the right of employees to freedom of association and collective bargaining. 37 The University of Washington? IMGCL I NIKE Retail Product License Agreement Labor Code Standards Rider to Schedule I Women?s Rights: 1. sets Women workers will receive equal remuneration, including bene?ts, equal treatment, equal evaluation of the quality of their work, and equal opportunity to fill all positions as male workers. Pregnancy tests will not be a condition of employment, nor will they he demanded of employees. Workers who take maternity leave will not face dismissal nor threat of dismissal, loss of seniority or deduction of wages?, and will be able to remm to their former employment at the same rate of pay and bene?ts. Workers will not be forced or pressured to use contraception. Workers will not be exposed to hazards, including glues and solvents, that may endanger their safety, including their reproductive health. Licensees shall provide appropriate services and accommodations to women workers in connection with pregnancy. 38 The University of Washington- Retail Prodect License Agreement FLA Principles of Fair Labor and Responsible Sourcing Schedule II Principles of Fair Labor and ResPonsibIe Sourcing Each Licensee comply with the monitoring requirements adopted by the Collegiate Institution including but not limited to participation in the Fair Labor Association labor code monitoring program. 1. Workplace Standards: Company Af?liate establishes and commits to clear standards. 1.1 Company Af?liate establishes and articulates clear, written workplace standards 1.2 that meet or exceed those embodied in the FLA Workplace Code of Conduct. 3) Af?liate has written workplace standards b) Workplace standards meet the FLA Workplace Code of Conduct Company Af?liate leadership formally Commits to uphold workplace standards and to integrate them into company business practices. a) Demonstrated commitment from CEO/owner to upholding and integrating workplace standards 2. Responsibility and Head Office/Regional Training: Company Af?liate identi?es and trains speci?c staff responsible for implementing workplace standards and provides training to all head of?ce and regional staff. 2.1.1 2.2 2.3 Company Af?liate identifies the person(s) responsible for administering and implementing its workplace standards compliance program. a) Organizational chart designating title, name and contact information of reSpo'nsible individuaks) b) Job description(s) or other equivalent to demonstrate relevant responsibilities Company Af?liate trains the responsible for administering and implementing its workplace standards compliance program. a) Appropriate training or other professional development to qualify the staff person(s) b) Training content includes: - Collective bargaining, - Union engagement, ?9 Effective worker-management communication channels c) Training feedback or behavioral changes that demonstrate participant knowledge gained Company Affiliate ensures that training is provided to all head of?ce and regional staff on the company?s commitment to workplace standards and the integration of standards into business practices. Training occurs at onboarding 39 University of Washington-MGCL NIKE Retail Product License Agreement and refresher training is conducted annually. Percentage of head of?ce and regions; staff that? received training . Training feedback or behooioroi Changes that demonstrate participant knowledge gained Evidence of cocoa? refresher training 3. Supplier Training: Company Af?liate obtains commitment and trains relevant supplier - management on workplace standards and tracks effectiveness of supplier workforce training. 3.1 3.2 3.3 3.4 3.5 Company Af?liate formally conveys workplace standards to suppliers and receives written acknowledgment of standards and commitment to uphold them. 3) Percentage of contract facilities providing written commitment to uphold standards and remediate noncompliance 5 Company Af?liate obtains written agreement from suppliers to facilitate periodic as,sessrnents including those organized by the FLA, and to actively contribute to consequent remediation activities a) i?ercentage of contract facilities providing Written agreement to facilitate periodic assessments Company Af?liate conditions future business with suppliers upon continuous improvement of workplace conditions. a) Policy on the use of workplace conditions information in factory evaluations b) Demonstrated example of workplace conditions information used in factory evaluations c) Demonstrated action taken for failure to improve Company Af?liate ensures that workplace standards are accessible, to workers, managers and supervisors in written form and relevant languages a) Percentage of contract facilities :11 which the affiliate veri?ed that workers, managers, and supervisors have access to written workplace standards to relevant languages Company Af?liate ensures that workers, managers and supervisors are trained on workplace standards at regular intervals to take account of labor turnover. a) Percentage of contract facilities in which the af?liate verified performance and frequency of ongoing workplace standards training b) Training feedback or behavioral changes that demonstrate participant knowledge gained 4 Functioning Grievance Mechanisms: Company Af?liate ensures workers have access to functioning grievance mechanisms, which include multiple reporting channels of which at least one is confidential. 4.1 4.2 4.3 Company Af?liate ensures there are functioning grievance mechanisms at contract facilities. a) Evidence of supplier grievance mechanisms b) Evaluation of the effectiveness of supplier grievance mechanisms Where local mechanisms are not functioning, Company Af?liate provides alternative channels for workers to contact the brand directly and confidentially a) Evidence that alternative grievance channels have been provided by the brand, if applicable Company Af?liate ensures training and communicationis provided to all 40 University of Washington?{MGCL I NIKE Retail Product License Agreement workers about the grievance mechanisms. a) Percentage of contract facilities for which af?liate veri?ed annual training on grievance mechanisms Training feedback or behavioral changes that demonstrate participant knowledge gained . 4.4 Company Af?liate ensures that grievance mechanisms lack penalty and have at least one confidential reporting channei. a) Evaluative evidence that grievance mechanisms lack penalty b) Evaluative evidence of at least one confidential reporting channel 5. Monitoring: Company Af?liate conducts workplace standards compliance monitoring. 5.1 Company Affiliate condocts pie-sourcing assessment of contract facilities to review compliance with workplace standards. a) Percentage of contract facilities added within the reporting period that were monitored for workplace standards prior to sourcing 5.2 Company Af?liate monitors contract facilities regularly to assess compliance with workplace standards. a) Percentage of contract facilities monitored for workplace standards by affiliate within the reporting period b) Evidence of a risk analysis approach in prioritizing assessments 5.3 Company Affiliate ensures that its monitoring program includes, but is not limited to: - - Worker interviews, - Consultation with unions or worker representative structures (where applicable), Management interviews, - Documentation review, - Visual inspection, and Occupational safety and health review. a) Monitoring documentation that includes all appropriate elements 5.4 Company Af?liate ensures that, where relevant, monitoring is consistent with applicable terms in collective bargaining agreements. a) Verification by af?liate of terms and Conditions related to workplace standards in contract facilities with collective bargaining agreements 6. Collection and Management of Compliance Information: Company Af?liate collects, manages, and analyzes workplace standards compliance information. 6.1 Company Af?liate maintains a complete and accurate list of contract facilities 41 University of WashingtonwiMGCL NIKE Retail Product License Agreement and collects and manages compliance and workplace information. a) A complete and accurate list of contract facilities including: - Address and contact information, Historic audit data, Possible root causes of noncompliance, Previous labor disputes, Incidents, Accidents, and Presence of unions or worker representative structures 6.2 Company Af?liate analyzes trends in noncompliance ?ndings. a) Documentation of analysis of trends b) Documentation that identi?es and tracks repeating forms of noncompliance as well as those that most negatively impact workers 7. Timely and Preventative Mediation: Company Af?liate works with suppliers to remediate in a timely and preventative manner. 7.1 Company Af?liate provides regular follow-up and oversight to implement corrective action following assessments. A) Documented process for following up on remediation b) Evidence of consultation with unions or worker representative structures on remediation, as appropriate c) Documented collaborative process of developing remediation plans 7.2 Company Af?liate works with the supplier to determine root causes and take action to prevent future noncompliance in contract facilities. a) Documented collaborative process of root cause analysis b) Evidence of actions taken to prevent future noncompliance 7.3 Company Af?liate records and tracks the progress and effectiveness of remediation for internal assessments. 21) Evidence that remediation progress is tracked to completion b) Demonstrated process to determine effectiveness of remediation plans 8. RESPONSIBLE PURCHASING PRACTICES: Company af?liate aligns planning and purchasing practices with commitment to workplace standards. 8.1 Company Af?liate has formal, written policies and procedures for planning and purchasing that l) articulate the many complexities involved in their global supply chains, 7 including different supplier business models, and 2) Require relevant internal representatives to work with suppliers to reduce negative impacts on working conditions. These policies and procedures shall address alignment of ?nancial terms with FLA Workplace Standards, adequacy of lead time provided (considering, for example, availability of inputs, testing, design changes, and production capacity) to produce excessive overtime, unauthorized subcontracting, or other negative impacts, and balanced annual planning efforts to eliminate negative 42 University of NIKE Retail Product License Agreement outcomes (Le. lower ef?ciency, poor labor retention, and longer throughput) that arise from traditional seasonal order demand. a) Policies and procedures that address: Element 1 and 2, - Financial terms, Lead time, and Balanced planning b) Frequency of review by senior management to assess impacts of planning and purchasing on compliance 8.2 All relevant business and compliance staff and any contracted agent/intermediary are trained and knowledgeable of the consequences of their planning and purchasing practices on working conditions in order to mitigate negative impacts on code compliance. 3.) Percentage of relevant business staff compliance staff and any agent/intermediary trained b) Training feedback or behavioral changes that demonstrate participant knowledge gained c) Frequency of refresher training d) Systems for periodic evaluation of training 8.3 Company Af?liate holds relevant staff and any contracted agent/intermediary accountable for the implementation of planning and purchasing practices that help avoid negative impacts on workers and working conditions. a) Job descriptions andfor annual performance reviews of relevant staff include accountability for carrying out responsible planning and purchasing practices b) Company has an integrated internal strategy that drives awareness for responsible planning and purchasing practices at all levels of the company c) Company tracks and analyzes suggestions/ideas to avoid negative impacts on the workplace d) Number of suggestions that are implemented 8.4 Company Af?liate staff responsible for planning and purchasing decisions engage with their labor compliance colleagues, any? contracted agent/intermediary and suppliers in regular and dialogue throughout the production process and when problems arise to support operations at the factory level and to seek to avoid or mitigate negative impacts on workers and/or compliance with code standards at supplier facilities. a) Documented process to facilitate dialogue among key departments, with any contracted agent/intennediary, as well as between supplier and buyer (each represented by staff from ali key departments) to analyze and review impact. b) Frequency of relevant dialogues 4c) Evidence that buyer contributes constructive feedback (1) Evidence of continuous measured improvements through open dialogue 8.5 Company Af?liate provides positive incentives for suppliers and/or facilities producing in a socially responsible and sustainable manner and, if applicable, 43 University of NEKB Remit Product License Agreement having internal systems aligned with FLA Principles. a) Documented system to evaluate suppliers and/or facilities b) Availability of positive incentives 0) Percentage of suppliers and/or facilities receiving incentives 9. Consultation with Civil Society: Company Af?liate identi?es, researches and engages with relevant governmental organizations, trade unions and other civil society institutions. 9.1 Company Af?liate develops a civil society organization (CSO) outreach strategy that re?ects the geographical distribution of production. a) A strategic plan for local CSO outreach and engagement that takes into account high risk and production volume b) Documented mapping of (3805 that considers criteria and relevancy 9.2 Company Af?liate develops and maintains links to relevant C80 3 to gain understanding of local labor issues. a) 4 Evidence of efforts to engage with CSOs in all high risk and high volume countries b) Percentage of sourcing countries where the af?liate has relationships with CSOs 9.3 Company Af?liate strategizes with C805 and lmowledgeable local sources in the design and implementation of workplace standards compliance programs. a) Demonstrated engagement with CSOs in the design and implementation of workplace standards compliance strategies including: - Trainings, - Worker communication channels, or - Facility site-speci?c remediation plans 9.4 Company Af?liate consults with supplier management and legally constituted unions or worker representative stru?cmres to gain an understanding of relevant - relationships. 3.) _Step-by?step procedure for relevant stafflassessor use in gaining an understanding of union structures in all sourcing countries, speci?cally within its supplier base, and demonstration of procedure implementation b) Evidence of consultation with all relevant parties regarding speci?c, existing relationships between supplier management and any legally constituted unions or worker representative structures 10. Verification Requirements: Company Af?liate meets FLA veri?cation and program requirements. 10.1 Company Af?liate maintains standard operating procedures related to FLA af?liation. a) Standard operating procedures related to FLA affiliation 10.2 Company Af?liate participates in FLA due diligence activities, including assessments at contract facilities and company headquarters, as applicable. a) Participation in applicable FLA due diligence activities b) IEA corrective action plans submitted within the timeframe designated in the IEA Procedures c) EA remediation updates provided to the FLA every 6 months 16.3 Company Affiliate completes a standardized annual report on ful?llment of 44 University of Washington?IMGCL I NIKE Retail Product License Agreement Principles of Fair Labor and Responsible Sourcing. a) Timely completion of the annual seifaassessment 10.4 Company Af?liate maintains a complete and accnrate profile and list of contract facilities with the FLA. Pro?le updated within the past year b) Contract facility list is up?to-date at the beginning of the selection process of each IEA cycle 1_0.5 Company Af?liate responds to FLA requests for documentation, contracts, information and clari?cation in a timely manner.? . a) Frequency that company appeared on a FLA staff report for failure to meet Principles b) Company representative'eontribution to the FLA by attending and/or hosting an FLA Board meeting or participating actively on a Working Group or Committee within the past year 10.6 Company Af?liate pays annual dues and applicablefees on seheduie. Company pays dues and fees in full and on time. 45 University of NIKE Retail Product Lioense Agreement EXHIBIT A PROTOCOL FOR WRC INVESTIGATIONS 0F NIKE FACTORIES I) Request for Access A) B) KC) The Worker Rights Consortium will provide Nike, ?110., (?Nike?) with a written request for access to a speci?c Nikesupplier factory, for the purpose of conducting an investigation of working conditions at the factory or to confirm remediation as described in Section KB). The WRC will provide the substantive reasons for the request when requesting access to the factory. If requested by the WRC, Nike will not disclose the reasons for requesting access to the factory. ike will use its best efforts, using all available economic leverage including exit, to facilitate access to the factory, including its facilities and personnel, within ?fteen (15) days from receiving the written request. In extraordinary circumstances, Nike will use its best efforts, using all available economic leverage including exit, to facilitate access no more than twenty-one (21) days from receiving the written request. In the event that an urgent problem is reported at the factory, Nike will facilitate access for the WC as soon as possible. Consistent with Section the WRC will have the ability to retum to the factory, after its initial visit, to confirm that remediation has occurred. To the extent possible, Nike will share records of audits that have been conducted at the factory by Nike?s staff, its agents, or other organizations. Nike and the WRC will discuss any ?ndings that have been made and corrective actions that have been recommended or implemented. The WRC will review and giVe due consideration to ?ndings reached by other organizations that have previously conducted audits or assessments in the factory. II) Investigation A) B) C) D) The WRC will be permitted to take photographs, copy documents, and interview factory workers and managers. Following an inspection, or in lieu of inspection when determined by the WRC, Nike will use its best efforts to ensure the WRC has access to physical or electronic records needed to complete the investigation. Nike?s staff or its agents may be present in the factory during the investigation. The WRC will make best efforts to coordinate logistics with other entities. If coordinating schedules between Nike or its agents and the WRC would cause a significant delay, then Nike will facilitate separate access to the factory for the WRC. When necessary, the WRC will be permitted to review personnel records or interview factory workers or managers in private in order to protect confidentiality and anonymity. The WRC will protect the confidentiality of competitive or proprietary information related to Nike or the factory obtained during its investigation. 46 University of Washington?M601, I NIKE Retail Product License Agreement HI) Remediation and Reporting A) The WRC will provide reasonable notice, including a detailed summary of ?ndings, to Nike prior to publishing B) its factory report in order to include commitments from Nike or the factory regarding remediation, or for Nike or the factory to demonstrate that appropriate corrective actions have been taken or are in process. The WRC may communicate its findings, prior to the publication of its report, to the factory owners, the factory workers, their representatives, government of?cials, and/or other buyers, and will discourage these parties from prematurely circulating this information. The WRC will not communicate its ?ndings to any parties other than these prior to publication of its report. In its factory report, the WRC will identify all brands and retailers that it knows to be sourcing from the factory and Specify which of them are university licensees sourcing university apparel. Nike and the WRC will work with the factory and, if possible, non?collegiate apparel brands and retailers sourcing from the factory to develop a remediation plan within a reasonable time after Nike receives the summary of ?ndings. To the extent that the WRC Icarus that the factory manufactures university? licensed products for other university licensees, the WRC will engage all university licensees sourcing from the factory to discuss its findings and work together on a remediation plan. IfNike and the WRC agree on the needed outcome of remediation but disagree on the process of achieving remediation, the parties will discuss such differences, and the WRC will retain the absolute right to express its regarding remediation in its reports. In the event that a problem identi?ed at the factory is of such an urgent nature (for example, where there is an imminent danger to workers? health and safety, or where a mass dismissal of workers is imminent or has occurred) that immediate reporting is necessary, the WRC will notify Nike and pubiiciy report the problem. 47 University of Washington-MGR I NIKE Retail Product License Agreement