III. DISNEY CODE OF CONDUCT FOR MANUFACTURERS AND MINIMUM COMPLIANCE STANDARD

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DISNEY CODE OF CONDUCT FOR MANUFACTURERS

First adopted in 1996, the Disney Code of Conduct for Manufacturers (“Disney Code”) sets forth Disney’s expectations formanufacturers of Disney branded products. Disney expects all Facilities engaged in the production of Disney branded products to comply with the Disney Code or another code of labor standards approved in advance by Disney as described in this ILS Program Manual (the Disney Code and any approved alternative code may be referred to together as the “Code”).

The principles embodied in the Disney Code are consistent with the core conventions of the International Labour Organization (“ILO”), as well as with various third party initiatives and corporate codes of conduct pertaining to supply chain labor standards. The Disney Code is available in more than 50 languages at www.DisneyLaborStandards.com. (See Appendix 3: Disney Code of Conduct for Manufacturers for more information.)

MINIMUM COMPLIANCE STANDARD

Disney requires that all Facilities engaged in the production of Disney branded products meet and maintain, at a minimum, a requisite level of compliance with the Code referred to as the Minimum Compliance Standard (“MCS”). In order to meet the MCS, a Facility must demonstrate the absence of violations in the following Code categories which Disney considers to be the highest priority and most serious labor standard issues:

? Child Labor                            

? Involuntary Labor

? Coercion and Harassment                

? Nondiscrimination

? Association                            

? Health and Safety

? Subcontracting                          

? Monitoring and Compliance

In addition, the MCS requires that each Facility you use provide access to complete and accurate information, including allphysical locations within the Facility, relevant documents, and workers for private and confidential interviews.

MCS violations identified prior to the initial authorization for Disney branded production must be resolved before, and as a condition of, initial production authorization by Disney. As a condition of continued use of a Facility, MCS violations identified during the course of production must be remediated within the time periods and in the manner established by the ILS Program.

Disney may adjust the MCS periodically to help foster safe, inclusive, and respectful workplaces wherever Disney branded products are manufactured and to reflect industry trends.

A Facility may be subject to immediate loss of authorization to produce Disney-branded products if:

? MCS violations identified during the course of production as a result of an IL Audit are not remediated within the designated time periods, as evidenced by a subsequent ILS Audit.

? An ILS Audit (from any source) reveals fraud, bribery, or other improper influence. (See the Facility Loss of Production Authorization section for details.)

In addition, an individual Licensee or Vendor will be prohibited from using a Facility upon their failure to submit a qualified ILS Audit Report demonstrating that the Facility is in compliance with the MCS, as required by the ILS Program. (See the Facility Declaration and Authorization section for details.)