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NETWORKS ASIA, INC. 30/F Oxford House, Tai Koo Place, 979 Kings Road, Quarry Bay, Hong Kong Contact: Tel: E-mail: Fax: Acct Exec: Licensee (Licensee): PT Cahaya Buana Intitama Name(s): Address: KAWASAN INDUSTRI SENTUL, Jl. Cahaya Raya Blok M, Sentul, Bogor 16810, Indonesia Further details are as set out in Attachment E. Contact: Tel: E-mail: Fax: Mr. Ardani Tamrin 62 21 876 5928-29 biglandsq@yahoo.co.id 62 21 875 0232 Ms. Dulce Lim-Chen +852-3128-3632 Dulce.Lim-Chen@turner.com +852-3128-3997
Address:
As further set out in Attachment A. Licensed Category: Licensed Products: Home Furnishing Those articles or products in the Licensed Category described in Attachment B. Channels of Distribution: described in Attachment C Sell-off Period: 60 days As further Wholesale Only
Licensee shall provide Company with a minimum of 6 samples of each Licensed Product. Guaranteed Consideration: payable in (i) (ii) (iii) on or before (iv) on or before (v) on or before (vi) on or before 1st Royalty Report due: Currency: USD Reporting Frequency: 15 Oct 08 Quarterly in arrears . ; and ; ; USD 25,000.00 instalments as follows:
By Licensed Property?
YES
NO
Royalty Rate: 12% of the per-article price charged by Licensee for the Licensed Products, or the MPAR set out in Attachment B, whichever is the higher.
Marketing Commitment: The Marketing Commitment includes a minimum of 5% of total net revenue during the Term to be spent by Licensee on advertising and promotion as set out in Attachment D. Proof of Marketing Commitment is due quarterly in arrears. Common Marketing Fund: Licensee must pay a minimum of 2.5% of the net Sales Amount into a Central Marketing Fund (CMF) by way of a marketing contribution to be managed by or on behalf of Company for Company related promotional activities. Third Party Manufacturer(s)?
YES NO
If Yes, complete Attachment F, including Third Party Manufacturers Agreement. Name and address of proposed Third Party Manufacturer(s): As set out in Attachment F.
INSURANCE: Minimum policy limit per occurrence required for Licensees commercial and general liability policy of insurance is as set out in the General Conditions.
YES YES NO NO
Credit Application completed and attached? Conflict Check completed and attached?
FRONT PAGE - NON-EXCLUSIVE INTERNATIONAL PRODUCT LICENCE New / Renewal Contract Number: 0 DOCUMENTS AND DEFINED TERMS: IMPORTANT: This application is subject to contract and Companys standard terms. It does not constitute a binding contract or an offer capable of acceptance. This application is subject to final approval by Company and the execution by all parties of the corresponding agreement(s). Licensee has no rights to utilise the Licensed Property for any purpose whatsoever until such time as a binding contract has been executed by all parties. Signature by local representative(s) is meant for authenticity purposes only. All agreement(s) are renewable only at Companys option. Statements in this application do not constitute a promise by, and do not confer any obligation or liability on, Company, its agents and/or its affiliated companies. Terms defined above apply throughout this application.
ATTACHMENTS: Attachment A Licensed Property Attachment B Licensed Products & Sales Plan Attachment C Channels of Distribution Attachment D Marketing Commitment Attachment E Licensee Details Attachment F Third Party Manufacturer Details & Agreement
Licensee:
APPROVALS: ________________ Initials: ________________ Initials: ________________ Initials: ________________ Initials: Initials:
________ VP Finance:
Licensing ________ Agent: Licensing Agent:
ATTACHMENT A Licensed Property and Trademark Notices New / Renewal Contract Number: 1. 0
Licensed Property means the names and static visual likenesses of the following specific fictional characters, only as depicted in the entertainment properties defined below as the Programme(s) (excluding dialogue, storylines and plot elements from the Programme(s), except as specifically agreed otherwise in writing and in advance by Company). It is specifically understood and agreed that the character names, likenesses and other elements referred to above (including, if applicable, the names of actors, voice-over artists, and/or other elements listed in this Attachment A) are included within this definition: (i) only to the extent of Companys ownership or control of such character names, likenesses or other elements; and (ii) only as specifically depicted in and as part of the Programme(s). Licensee understands and acknowledges that nothing in this Agreement grants Licensee the right to use sound bites, voices, music or other audio effects (Audio Elements ) from the Programme(s). If Licensee wishes to use any such Audio Elements, Licensee must separately procure the necessary rights at its sole expense including the cost of any rights, clearance or other related fees.
2.
For all uses of the Cartoon Network logo or Mark, the following trademark notice shall be used: CARTOON NETWORK and the logo are trademarks of and 2008 Cartoon Network. A Time Warner Company. All rights reserved. (s0X) or, subject to Company's prior written approval, the following trademark notice may be used: & 2008 Cartoon Network
3.
Programme(s) means the properties and characters set out below. The trademark notices to be used in connection with the Marks associated with the Programme(s) as at the date of this Agreement are as set out below. Company may update these notices from time to time during the Term. CHARACTERS: BEN TENNYSON, GWEN TENNYSON, GRANDPA MAX, DIAMONDHEAD, FOUR ARMS, GHOST FREAK, GREY MATTER, RIP JAW, STINKFLY, UPGRADE, XLR8, HEATBLAST, WILDMUTT, CANNONBOLT, WILDVINE, UPCHUCK, BENWOLF, VILGAX, DR. ANIMO & KEVIN 11 TRADEMARK NOTICES: BEN 10 and all related characters and elements are trademarks of and 2008 Cartoon Network. A Time Warner Company. All rights reserved.. (s0X) CARTOON NETWORK, the logo, BEN 10 and all related characters and elements are trademarks of and 2008 Cartoon Network. A Time Warner Company. All rights reserved. (s0X)*
PROGRAMME(S): BEN 10
Note: * means that this legal line is to be used when the Cartoon Network logo is used with any element of the relevant Licensed Property. "s0X" denotes the year of shipment e.g. for products shipped in 2008, the trademark notice should contain the note "s08".
ATTACHMENT B LICENSED PRODUCTS & SALES PLAN New / Renewal Contract Number: Licensee Name: Licensed Products (by item) 0
PT Cahaya Buana Intitama Licensed Category Ages Gender Dimensions / Sizes Construction/ Materials/ Fabrics Character Application Wholesale Price (A) Approx Retail Price Projected Projected Sales Volume Sales Amount (B) (A x B) MPAR (USD)
Home Furnishing
4-13 years
Boys
Home Furnishing
4-13 years
Boys
Home Furnishing
4-13 years
Boys
Home Furnishing
4-13 years
Boys
Home Furnishing
4-13 years
Boys
Home Furnishing
4-13 years
Boys
Spring Bed: 120 x 100 cm ; Cupboard: 90 x 550 x 140 cm Spring Bed: 120 cm x 100 cm ; Cupboard: 90 x 40 x 140 cm Spring Bed: 120 cm x 100 cm ; Nightstand: 40 x 40 x 50 cm Spring Bed: 120 cm x 100 cm ; Rolling Bed: 120 x 100 cm Spring Bed: 120 cm x 100 cm ; Bedsheet: 120 x 100 cm Spring Bed: 120 cm x 100 cm ; Bed Cover: 120 x 100 cm
Spring Bed: Wood, Fabric, Spring, Foam ; Study Desk: Particle Board Spring Bed: Wood, Fabric, Spring, Foam ; Cupboard: Particle Board Spring Bed: Wood, Fabric, Spring, Foam ; Night Stand: Particle Board Spring Bed: Wood, Fabric, Spring, Foam ; Rolling Bed: Fabric, Foam, Spring Bed: Wood, Fabric, Spring, Foam ; Bedsheet: Fabric Spring Bed: Wood, Fabric, Spring, Foam ; Bed Cover: Fabric, Silicone
Screen Printing
179.00
226.00
260
46540
17.184
Screen Printing
180.00
227.00
255
45900
17.28
Screen Printing
175.00
222.00
210
36750
16.8
Screen Printing
173.00
220.00
175
30275
16.608
Screen Printing
176.00
223.00
160
28160
16.896
Screen Printing
176.00
223.00
160
28160
16.896
0
DESIGNATED CATEGORY
YES NO
All expense documentation related to the production of such advertising and all purchases of media (any agency fee expenses must reflect any related advertising and other discounts).
YES
NO
YES
NO
YES NO
All expense documentation related to the contributions by Licensee to its retailer customers and, to the extent available, the production of the advertising materials by such retailers. All expense documentation related to the production and execution of such incentive programs.
YES
NO
YES
NO
All expense documentation related to the production and distribution of such items.
YES NO
Documentation of total tradeshow activity Tradeshow Activity production expenses and any specific costs Tradeshow activity expenses will only apply to the extent an area at the tradeshow is dedicated to the promotion of the Licensed Products. directly related to the area dedicated to the promotion of the Licensed Products (no more than twenty percent (20%) of the total tradeshow activity production expenses may count towards fulfillment of the Marketing Commitment, unless otherwise previously agreed to by Company). Required supporting expense documentation Other This category includes mandatory participation in Company-organized to be determined by Company on a case-bycase basis. promotions and any other advertising, promotional or marketing expenses not included in the foregoing categories, subject in all cases to Companys prior approval.
YES NO
YES NO
ATTACHMENT E LICENSEE CONTACT INFORMATION New / Renewal Contract Number: Licensee Name: Licensee Primary Contact:
0
(details below)
Agreement Contact (the person who will sign the agreement): PIMPIN First Name: NAGAWAN Last Name: Salutation: DIRECTOR Job Title: 62 21 876 5928-29 Phone #: Alternate Phone #: 62 21 875 0232 Fax #: Marketing Contact (if different from agreement information): ARDANI First Name: TAMRIN Last Name: Salutation: MARKETING MANAGER Job Title: 62 21 876 5928-29 Phone #: Alternate Phone #: 62 21 875 0232 Fax #: Billing Contact (if different from agreement information): HENDRA First Name: SAPUTRA Last Name: Salutation: FINANCE MANAGER Job Title: 62 21 876 5928-29 Phone #: Alternate Phone #: Fax #: 62 21 875 0232 Sales Contact (if different from agreement information): ARDANI First Name: TAMRIN Last Name: Salutation: MARKETING MANAGER Job Title: 62 21 876 5928-29 Phone #: Alternate Phone #: 62 21 875 0232 Fax #: Design Contact (if different from agreement information): LUBIS First Name: Last Name: Salutation: DESIGNER Job Title: 62 21 876 5928-29 Phone #: Alternate Phone #: 62 21 875 0232 Fax #:
Address: City: State: Postcode: Country: Email: Address: City: State: Postcode: Country: Email: Address: City: State: Postcode: Country: Email: Address: City: State: Postcode: Country: Email: Address: City: State: Postcode: Country: Email:
Address:
ATTACHMENT F-1 MANUFACTURERS AGREEMENT Licensor: Licensee: Product License: Territory: Term: Licensed Property: Licensed Category: Licensed Product(s): Name and Address of Manufacturer:
Ben 10 Home Furnishing as further described in Attachment A
[Contract No ]
(Licensee )
Name and Address of Manufacturers Factory: (If different from the address above.)
(A)
Company has pursuant to the Product License between itself and Licensee (Licence Agreement ) granted to Licensee certain rights in relation to the manufacture, sale and distribution of certain products in the Territory during the Term only in accordance with the terms of the Licence Agreement.
(B)
In consideration of Company consenting to the manufacture of the Licensed Product(s) by Manufacturer for and at the request of Licensee, Licensee and Manufacturer agree as follows: Manufacturer acknowledges and agrees that any and all rights and interest in and to all elements of the Licensed Property, including all artwork, trademarks, designs, drawings, photographs or other materials (Artwork ) relating to the Licensed Property, belong to Company.
1.
2.
Manufacturer shall use the Artwork only for the purpose of manufacturing the Licensed Product(s) at its factory at the location stated above, and shall not disclose, lend or give the Artwork to third parties or make copies or reproductions of the Artwork without the prior written consent of Company. The Artwork received by Manufacturer shall be on loan only and shall be returned to Licensee: (a) immediately after Manufacturer has completed the manufacture of the Licensed Product(s) in accordance with Licensees orders and instructions; or (b) at any time when such return is requested by Licensee or Company. Manufacturer shall manufacture only such quantities of the Licensed Product(s) as are from time to time ordered by Licensee in writing. Manufacturer shall not deliver Licensed Product(s) to anyone other than Licensee or such customers of Licensee as may be designated in writing by Licensee from time to time. Manufacturer shall not subcontract production of the Licensed Product(s) or any components of the Licensed Product(s) without the prior written consent of both Licensee and Company. Manufacturer shall not manufacture any item using any of the copyrighted material and/or trademarks owned by Company and its affiliates, other than the Licensed Product(s) manufactured using the Licensed Property in accordance with this Agreement. Licensed Product(s) that do not meet the standard of approved samples shall be destroyed, unless otherwise directed by Licensee and Company in writing. Manufacturer shall permit authorized representatives of each of Licensee and/or Company to inspect its activities and premises, accounting books and invoices relevant to its manufacture and supply of the Licensed Product(s) at any time during normal business hours. Manufacturer shall not publish or cause the publication of pictures of the Licensed Product(s) in any marketing or promotional materials, and shall not advertise the fact that it is permitted to manufacture the Licensed Product(s) using the Licensed Property. Manufacturer shall comply with all local laws, including labour laws, child protection laws, wage and hour laws, anti-discrimination laws and the United States Foreign Corrupt Practices Act, and shall conduct its affairs in accordance with good and reputable business practices.
3.
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6.
7.
8.
9.
Upon the expiration or earlier termination of the Licence Agreement, or upon notification by either Licensee or Company, Manufacturer shall immediately cease manufacturing the Licensed Product(s) and shall deliver to Licensee or Company or their respective representatives that portion of any and all moulds, plates, engravings, screens, embroidery tapes and all other devices used to produce items which incorporate the Licensed Property (including the Artwork) and shall provide Company with evidence satisfactory to Company that all images of the Licensed Property have been expunged from all such moulds, plates, engravings, screens, embroidery tapes and all other devices.
10.
The manufacture of the Licensed Product(s) under this Agreement shall not commence until signature of this Agreement by all parties to it, and shall not take place after expiry of the Term specified above.
MANUFACTURER:
LICENSEE:
Address:
ATTACHMENT F-2 MANUFACTURERS AGREEMENT Licensor: Licensee: Product License: Territory: Term: Licensed Property: Licensed Category: Licensed Product(s): Name and Address of Manufacturer:
Ben 10 Home Furnishing as further described in Attachment A
[Contract No ]
(Licensee )
Name and Address of Manufacturers Factory: (If different from the address above.)
(A)
Company has pursuant to the Product License between itself and Licensee (Licence Agreement ) granted to Licensee certain rights in relation to the manufacture, sale and distribution of certain products in the Territory during the Term only in accordance with the terms of the Licence Agreement.
(B)
In consideration of Company consenting to the manufacture of the Licensed Product(s) by Manufacturer for and at the request of Licensee, Licensee and Manufacturer agree as follows: Manufacturer acknowledges and agrees that any and all rights and interest in and to all elements of the Licensed Property, including all artwork, trademarks, designs, drawings, photographs or other materials (Artwork ) relating to the Licensed Property, belong to Company.
1.
2.
Manufacturer shall use the Artwork only for the purpose of manufacturing the Licensed Product(s) at its factory at the location stated above, and shall not disclose, lend or give the Artwork to third parties or make copies or reproductions of the Artwork without the prior written consent of Company. The Artwork received by Manufacturer shall be on loan only and shall be returned to Licensee: (a) immediately after Manufacturer has completed the manufacture of the Licensed Product(s) in accordance with Licensees orders and instructions; or (b) at any time when such return is requested by Licensee or Company. Manufacturer shall manufacture only such quantities of the Licensed Product(s) as are from time to time ordered by Licensee in writing. Manufacturer shall not deliver Licensed Product(s) to anyone other than Licensee or such customers of Licensee as may be designated in writing by Licensee from time to time. Manufacturer shall not subcontract production of the Licensed Product(s) or any components of the Licensed Product(s) without the prior written consent of both Licensee and Company. Manufacturer shall not manufacture any item using any of the copyrighted material and/or trademarks owned by Company and its affiliates, other than the Licensed Product(s) manufactured using the Licensed Property in accordance with this Agreement. Licensed Product(s) that do not meet the standard of approved samples shall be destroyed, unless otherwise directed by Licensee and Company in writing. Manufacturer shall permit authorized representatives of each of Licensee and/or Company to inspect its activities and premises, accounting books and invoices relevant to its manufacture and supply of the Licensed Product(s) at any time during normal business hours. Manufacturer shall not publish or cause the publication of pictures of the Licensed Product(s) in any marketing or promotional materials, and shall not advertise the fact that it is permitted to manufacture the Licensed Product(s) using the Licensed Property. Manufacturer shall comply with all local laws, including labour laws, child protection laws, wage and hour laws, anti-discrimination laws and the United States Foreign Corrupt Practices Act, and shall conduct its affairs in accordance with good and reputable business practices.
3.
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6.
7.
8.
9.
Upon the expiration or earlier termination of the Licence Agreement, or upon notification by either Licensee or Company, Manufacturer shall immediately cease manufacturing the Licensed Product(s) and shall deliver to Licensee or Company or their respective representatives that portion of any and all moulds, plates, engravings, screens, embroidery tapes and all other devices used to produce items which incorporate the Licensed Property (including the Artwork) and shall provide Company with evidence satisfactory to Company that all images of the Licensed Property have been expunged from all such moulds, plates, engravings, screens, embroidery tapes and all other devices.
10.
The manufacture of the Licensed Product(s) under this Agreement shall not commence until signature of this Agreement by all parties to it, and shall not take place after expiry of the Term specified above.
MANUFACTURER:
LICENSEE:
Address:
ATTACHMENT F-3 MANUFACTURERS AGREEMENT Licensor: Licensee: Product License: Territory: Term: Licensed Property: Licensed Category: Licensed Product(s): Name and Address of Manufacturer:
Ben 10 Home Furnishing as further described in Attachment A
[Contract No ]
(Licensee )
Name and Address of Manufacturers Factory: (If different from the address above.)
(A)
Company has pursuant to the Product License between itself and Licensee (Licence Agreement ) granted to Licensee certain rights in relation to the manufacture, sale and distribution of certain products in the Territory during the Term only in accordance with the terms of the Licence Agreement.
(B)
In consideration of Company consenting to the manufacture of the Licensed Product(s) by Manufacturer for and at the request of Licensee, Licensee and Manufacturer agree as follows: Manufacturer acknowledges and agrees that any and all rights and interest in and to all elements of the Licensed Property, including all artwork, trademarks, designs, drawings, photographs or other materials (Artwork ) relating to the Licensed Property, belong to Company.
1.
2.
Manufacturer shall use the Artwork only for the purpose of manufacturing the Licensed Product(s) at its factory at the location stated above, and shall not disclose, lend or give the Artwork to third parties or make copies or reproductions of the Artwork without the prior written consent of Company. The Artwork received by Manufacturer shall be on loan only and shall be returned to Licensee: (a) immediately after Manufacturer has completed the manufacture of the Licensed Product(s) in accordance with Licensees orders and instructions; or (b) at any time when such return is requested by Licensee or Company. Manufacturer shall manufacture only such quantities of the Licensed Product(s) as are from time to time ordered by Licensee in writing. Manufacturer shall not deliver Licensed Product(s) to anyone other than Licensee or such customers of Licensee as may be designated in writing by Licensee from time to time. Manufacturer shall not subcontract production of the Licensed Product(s) or any components of the Licensed Product(s) without the prior written consent of both Licensee and Company. Manufacturer shall not manufacture any item using any of the copyrighted material and/or trademarks owned by Company and its affiliates, other than the Licensed Product(s) manufactured using the Licensed Property in accordance with this Agreement. Licensed Product(s) that do not meet the standard of approved samples shall be destroyed, unless otherwise directed by Licensee and Company in writing. Manufacturer shall permit authorized representatives of each of Licensee and/or Company to inspect its activities and premises, accounting books and invoices relevant to its manufacture and supply of the Licensed Product(s) at any time during normal business hours. Manufacturer shall not publish or cause the publication of pictures of the Licensed Product(s) in any marketing or promotional materials, and shall not advertise the fact that it is permitted to manufacture the Licensed Product(s) using the Licensed Property. Manufacturer shall comply with all local laws, including labour laws, child protection laws, wage and hour laws, anti-discrimination laws and the United States Foreign Corrupt Practices Act, and shall conduct its affairs in accordance with good and reputable business practices.
3.
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6.
7.
8.
9.
Upon the expiration or earlier termination of the Licence Agreement, or upon notification by either Licensee or Company, Manufacturer shall immediately cease manufacturing the Licensed Product(s) and shall deliver to Licensee or Company or their respective representatives that portion of any and all moulds, plates, engravings, screens, embroidery tapes and all other devices used to produce items which incorporate the Licensed Property (including the Artwork) and shall provide Company with evidence satisfactory to Company that all images of the Licensed Property have been expunged from all such moulds, plates, engravings, screens, embroidery tapes and all other devices.
10.
The manufacture of the Licensed Product(s) under this Agreement shall not commence until signature of this Agreement by all parties to it, and shall not take place after expiry of the Term specified above.
MANUFACTURER:
LICENSEE:
Address:
ATTACHMENT F-4 MANUFACTURERS AGREEMENT Licensor: Licensee: Product License: Territory: Term: Licensed Property: Licensed Category: Licensed Product(s): Name and Address of Manufacturer:
Ben 10 Home Furnishing as further described in Attachment A
[Contract No ]
(Licensee )
Name and Address of Manufacturers Factory: (If different from the address above.)
(A)
Company has pursuant to the Product License between itself and Licensee (Licence Agreement ) granted to Licensee certain rights in relation to the manufacture, sale and distribution of certain products in the Territory during the Term only in accordance with the terms of the Licence Agreement.
(B)
In consideration of Company consenting to the manufacture of the Licensed Product(s) by Manufacturer for and at the request of Licensee, Licensee and Manufacturer agree as follows: Manufacturer acknowledges and agrees that any and all rights and interest in and to all elements of the Licensed Property, including all artwork, trademarks, designs, drawings, photographs or other materials (Artwork ) relating to the Licensed Property, belong to Company.
1.
2.
Manufacturer shall use the Artwork only for the purpose of manufacturing the Licensed Product(s) at its factory at the location stated above, and shall not disclose, lend or give the Artwork to third parties or make copies or reproductions of the Artwork without the prior written consent of Company. The Artwork received by Manufacturer shall be on loan only and shall be returned to Licensee: (a) immediately after Manufacturer has completed the manufacture of the Licensed Product(s) in accordance with Licensees orders and instructions; or (b) at any time when such return is requested by Licensee or Company. Manufacturer shall manufacture only such quantities of the Licensed Product(s) as are from time to time ordered by Licensee in writing. Manufacturer shall not deliver Licensed Product(s) to anyone other than Licensee or such customers of Licensee as may be designated in writing by Licensee from time to time. Manufacturer shall not subcontract production of the Licensed Product(s) or any components of the Licensed Product(s) without the prior written consent of both Licensee and Company. Manufacturer shall not manufacture any item using any of the copyrighted material and/or trademarks owned by Company and its affiliates, other than the Licensed Product(s) manufactured using the Licensed Property in accordance with this Agreement. Licensed Product(s) that do not meet the standard of approved samples shall be destroyed, unless otherwise directed by Licensee and Company in writing. Manufacturer shall permit authorized representatives of each of Licensee and/or Company to inspect its activities and premises, accounting books and invoices relevant to its manufacture and supply of the Licensed Product(s) at any time during normal business hours. Manufacturer shall not publish or cause the publication of pictures of the Licensed Product(s) in any marketing or promotional materials, and shall not advertise the fact that it is permitted to manufacture the Licensed Product(s) using the Licensed Property. Manufacturer shall comply with all local laws, including labour laws, child protection laws, wage and hour laws, anti-discrimination laws and the United States Foreign Corrupt Practices Act, and shall conduct its affairs in accordance with good and reputable business practices.
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Upon the expiration or earlier termination of the Licence Agreement, or upon notification by either Licensee or Company, Manufacturer shall immediately cease manufacturing the Licensed Product(s) and shall deliver to Licensee or Company or their respective representatives that portion of any and all moulds, plates, engravings, screens, embroidery tapes and all other devices used to produce items which incorporate the Licensed Property (including the Artwork) and shall provide Company with evidence satisfactory to Company that all images of the Licensed Property have been expunged from all such moulds, plates, engravings, screens, embroidery tapes and all other devices.
10.
The manufacture of the Licensed Product(s) under this Agreement shall not commence until signature of this Agreement by all parties to it, and shall not take place after expiry of the Term specified above.
MANUFACTURER:
LICENSEE:
The Time Warner Ethical Sourcing Guidelines (Guidelines ) reflect the commitment of Time Warner Inc. and its subsidiaries and affiliated companies (Time Warner ) to conduct business according to standards of integrity and ethics. It is important that all of our Vendors conduct business in compliance with local laws and regulations and industry standards. For the purposes of these Guidelines, " Vendor " is synonymous with terms that may include but are not limited to supplier, factory, licensee, site, facility, contractor and sub-contractor. Major Time Warner subsidiaries include AOL LLC, Home Box Office, Inc., New Line Cinema Corporation, Time Inc., Time Warner Cable Inc., Turner Broadcasting System Inc. and Warner Bros. Entertainment Inc. The International Labor Organization (ILO) Core Labor Conventions, as established by the tripartite United Nations affiliated agency, have served as the foundation upon which much of these Guidelines are based. EMPLOYMENT 1. Non-Discrimination Time Warner expects that Vendor will not discriminate in recruitment, hiring, training and employment practices, including compensation, benefits, advancement, discipline, termination or retirement, on the basis of race, color, religion, age, national origin, sex (including pregnancy), sexual orientation, marital status, physical or mental disability or any other category protected by law that does not affect an individuals ability to do the job. 2. Child Labor Time Warner expects that Vendor will not employ any person under the age of 15 (or 14 where local law allows) or younger than the age for completing compulsory education in the country of manufacture where such age is higher than 15. Workers under 18 years of age should not perform work likely to jeopardize the health or safety of young persons. All Vendors should also adhere to legitimate workplace apprenticeship programs and comply with all laws and regulations governing child labor and apprenticeship programs. The employment of child actors may be subject to separate guidelines. 3. Involuntary Labor Time Warner expects that Vendor will not use any forced or involuntary labor, whether prison, bonded, indentured or otherwise. Vendor will not require employees to relinquish any personal identification, including but not limited to passports, identification cards or work permits, as a condition of employment. 4. Coercion and Harassment Time Warner expects that Vendor will treat each employee with dignity and respect, and will not use corporal punishment, threats of violence or other forms of physical, sexual, psychological or verbal harassment or abuse. 5. Association Time Warner expects that Vendor will allow freedom of association when allowed by local law, and in all cases will respect the right of employees to communicate openly and directly with management and will not intimidate, harass or reprimand employees for doing so.
6. Working Hours and Compensation Time Warner expects that Vendor will comply with all wage and hour laws as mandated by applicable country laws or industry standards. Time Warner also expects that employees will not routinely work in excess of sixty hours per week and employees will be provided with a minimum of one rest day in every seven-day week. 7. Statutory Social Security and Welfare Benefits Time Warner expects that Vendor will contribute to all statutory social security and welfare funds to which employers and/or employees are required by applicable laws to contribute, including medical insurance, industrial injury insurance, pension, housing and unemployment funds, as well as contribute to these funds on behalf of all employees in accordance with all relevant laws and regulations. 8. Employment Records
Time Warner expects that Vendor will retain one year of complete and accurate records and documentation, including employment contracts, residence and work permits (if applicable), proof of age documentation, maternity leave records, industrial injury reports, and work time and pay records, relating to employees in manufacturing and operations positions necessary to demonstrate compliance with these Guidelines, other than information and records that applicable law requires Vendor to retain for a shorter period of time. HEALTH & SAFETY AND THE ENVIRONMENT 9. Health and Safety
Time Warner expects that Vendor will provide employees with a safe and healthy workplace in compliance with all applicable laws and regulations, ensuring at a minimum, occupational safety, machine guarding, emergency preparedness, industrial hygiene, reasonable access to potable water and sanitary facilities, fire safety, and adequate lighting and ventilation. Any Vendor that is a manufacturer will also ensure that the same standards of health and safety are applied in any housing or canteen facilities that it provides for employees. 10. Environment Time Warner expects that Vendor will comply with all applicable environmental laws and regulations and ensure that all required environmental permits and registrations are obtained, maintained and kept current and that operational and reporting requirements are followed. INTELLECTUAL PROPERTY AND ETHICS 11. Anti-Piracy Time Warner expects that Vendor will respect all intellectual property rights and will not copy or allow third party access to any Time Warner content without authorization, including but not limited to any form of film, video or digital elements containing audio/visual content, except as necessary to perform obligations under Vendors agreement with Time Warner. 12. Business Ethics Time Warner expects Vendors to implement effective ethics and compliance programs. For a sample policy, see the Time Warner Inc. Corporate Standards of Business Conduct at www.timewarner.com/corp/corp_governance/governance_conduct.html).
IMPLEMENTATION AND COMPLIANCE These Guidelines highlight Time Warners expectations of the manner in which its Vendors will conduct themselves in their business relationships with Time Warner. Time Warner recognizes that achieving the standards established in these Guidelines will be a dynamic rather than a static process and encourages Vendors continually to improve their workplace conditions.
Time Warner expects that its Vendors will establish and maintain appropriate management systems, the scope of which are consistent with the content of these Guidelines, and actively review, monitor and modify their management processes and business operations to ensure that their operations align with the principles set forth in these Guidelines. Time Warner expects that Vendor will work with its own suppliers and subcontractors to ensure that they also strive to meet the principles of these Guidelines or an equivalent set of principles. It is entirely within Time Warners discretion whether to continue to use a Vendor, subject to contractual obligations. Time Warner reserves the right to take such actions as it deems appropriate, in its discretion, to monitor and promote compliance with these Guidelines. The failure to consistently meet these standards may impact on a Vendors future ability to do business with Time Warner.