License Application Guide

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License Application Guide

This document outlines the process for obtaining a license to produce royalty-bearing merchandise bearing the trademarks of collegiate institutions (universities, colleges, service academies, etc.) represented by The Collegiate Licensing Company (CLC). If you intend to produce merchandise bearing the trademarks of collegiate institutions for university

departments and related entities for internal consumption, please download and complete the application for Internal Campus Suppliers.

Please review this document using Adobe Reader XI or a full version of Adobe. Several pages within this document are fillable PDF forms and by utilizing Adobe Reader XI or a full version of Adobe, the forms can be completed directly, saved to your desktop, and edited if necessary.

CLC also represents the NCAA, certain bowls, athletic conferences, and other related properties and operates a separate application process for each of them. If you are interested in applying for one of these properties, please download the application from the “Licensing Info” section of www.clc.com.

This guide is divided into three (3) primary sections and includes (3) appendices:

I. Overview

II. Does a Collegiate License Make Sense for Your Company? III. Application Process - Final Thoughts

It is very important that you read through each section of this document in order to ensure a complete understanding of the application process, the type of license that makes sense for your company, and the commitment/resources necessary to obtain approval.

ENCLOSURES LIST

Following is a list of the documents that are enclosed in the application package. If there are any pages that are missing, please email [email protected] and request the missing documents.

1. License Application Guide (this document)

2. Phase I Application Checklist*

3. CLC License Application*

4. Factory/Supplier Information Form*

5. Strategic Marketing & Distribution Plan Outline (for Local and Standard Applicants)

6. CLC Institution & Fee List*

7. Insurance Information

8. MyiCLC Registration Form*

9. Logos on Demand Information

10. Workplace Code of Conduct and Fair Labor Association (“FLA”) Information 11. CLC Retail Product License Agreement Synopsis

*These documents are fillable PDF forms that allow the user to type directly into the document if using Adobe Reader XI or a full version of Adobe.

HOW TO OBTAIN ANSWERS TO YOUR QUESTIONS

If you have questions throughout the application process, please use this document as a reference or email your questions regarding the application process to [email protected]. Answers to most questions are contained herein. Please read through this entire document, the Phase I Checklist, and other enclosures before contacting CLC.

I. OVERVIEW

CLC’s ROLE

Nearly 200 collegiate institutions throughout the United States have entrusted the management of their trademark licensing programs to CLC. CLC is proud of its role in administering its clients’ licensing programs and has developed a comprehensive trademark management program that includes state-of-the-art license administration, trademark protection, and marketing systems. CLC manages all facets of the CLC partner institutions’ licensing programs and is responsible for interfacing with the institutions and their respective manufacturers and retailers.

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The Collegiate Licensing Company

License Application Guide

LICENSEE’S ROLE

Manufacturers have four primary responsibilities as collegiate licensees:

1. Always obtain institutional approval on all products, designs, labels, marketing & distribution plans, and advertising/promotional materials prior to any production and distribution.

2. Actively maximize distribution of collegiate products.

3. Pay royalties due to the institutions in a timely and accurate manner.

4. Ensure that your company and others within its supply chain manufacture products in a responsible manner that is consistent with CLC partner institutions’ workplace codes of conduct, monitoring, and remediation standards.

CLC has built many useful systems and services that assist licensees in meeting these responsibilities. Institutions require licensees to use CLC systems and services to ease and expedite the licensing process. These systems and services are introduced throughout this guide and the rest of the application process.

THE PURPOSE OF THE APPLICATION

The purpose of this application is to obtain detailed information about your company and the product(s) for which you seek licensure so that the respective institutions may determine if providing a license to your company is in the best interest of their licensing and merchandising programs. CLC serves as a conduit in managing the application process and makes recommendations to each institution about the viability of each applicant. The ultimate decision-maker on all new applicants, however, is each individual institution.

Furthermore, many institutions have established a one-year waiting period for disapproved applicants. Accordingly, if an institution with this policy disapproves your application, you will need to wait one year before reapplying. As such, it is critically important that you take the necessary time to provide a thorough, all-inclusive response to the information requested in the application and the other documents herewith in order to make your best possible case for becoming a licensee.

DECIDING WHAT TYPE OF LICENSE TO REQUEST

There are three license types you can pursue with CLC. It is important that all applicants identify a desired license type and select it within the CLC License Application. Each license type is described in detail below:

Internal Campus Supplier (application not included in this package) - The Internal Campus Supplier Agreement allows a company to produce merchandise bearing the trademarks of collegiate institutions for university departments and related entities for internal consumption only. Sales must be categorized as royalty exempt by the individual institution. Sales to university bookstores, alumni associations, student groups, and/or other university entities not included on the approved distribution list are not permitted. In addition, internal campus suppliers cannot sell to any entity if the product will be resold, used for promotional purposes (gift with purchase) or fundraising. If this is the type of license you wish to pursue, do not proceed further with this application; instead, please download the Internal Campus Supplier application at www.clc.com. This license type is the most expeditious and least costly to pursue but there are strict limitations on distribution.

Local License - The Local License is for companies that desire to obtain a license with an institution located in their

immediate in-state marketplace. This license type may better suit companies that do not believe they can qualify for a Standard License, but believe they can demonstrate sales success within a few years at the local level in order to qualify. Local Licensees may only apply for up to five institutions located within the same state as their business. CLC highly recommends that you only apply for institutions that you are prepared to maximize in the near future. Local Licensees ARE permitted to sell product to institutions and their departments, retailers, and directly to consumers. A Local Licensee

may not apply for a Standard License until licensed for at least one full year as a Local Licensee and must complete and submit a new application meeting all Standard application requirements. This license type is the next easiest type

to pursue, but the costs are higher and geographic restrictions do exist.

Standard License - The Standard License is intended for companies that are capable of extensive production and retail

distribution of their product(s) and are introducing a unique and commercially viable product to the collegiate market. The Standard License is usually not for first-time applicants or companies without well-established marketing plans, existing product distribution, and/or a solid financial history of selling licensed products. We highly recommend that Standard License applicants provide as much detailed information as possible in their application to improve the likelihood of acceptance by the institutions. This is the most challenging and expensive type of license to pursue.

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The Collegiate Licensing Company

Many companies initially become licensed as Local Licensees because they lack experience in the collegiate market. The Local License offers new/unproven companies the opportunity to establish distribution and sales without incurring the added costs, requirements, and elevated scrutiny of the Standard License. Success as a Local Licensee does not ensure approval as a Standard Licensee. It will, however, provide a sales and distribution history that is important to institutions in approving a company as a Standard Licensee.

APPLICATION PHASES

CLC’s application process consists of three phases for Standard & Local applicants. Phase I of the application will be completed once you have submitted your application and your application is conceptually approved by the institution(s). Following successful submittal of your application to CLC and conceptual approval from the institution(s), the next major piece of correspondence you will receive from CLC will be a Phase II packet.

Throughout each phase of the licensing process you will be provided detailed instructions on how to complete the phase as well as the necessary forms. You will receive notices from CLC via MyiCLC or email if you fail to properly meet the requirements within each phase, so please pay close attention and submit thorough responses through all steps of the process.

THREE PHASES OF THE APPLICATION PROCESS

The following outlines the requirements of each phase of the application process for Standard & Local License applicants.

Phase I

1) Determine if a collegiate license makes sense for your company/product 2) Complete the License Application

3) Pay the Application Fee via check or money order drawn from a US bank

4) Provide a quality sample of your merchandise for which you are requesting licensure (including example of type of

logo application your product will incorporate - for example, embroidery, screenprint, etching, etc.)

5) Provide a sample/example of how your company name will be applied to product (company label) 6) Provide a credit report for your company

7) Provide an annual report, certified financial report, or business plan for your company 8) Provide a Marketing & Distribution Plan

9) Complete and submit the factory/supplier information form 10) Complete and submit the MyiCLC Registration Form

11) Review insurance information and obtain a quote from your insurance agent/carrier

12) Complete and submit the Corporate Responsibility and Supply Chain Compliance Questionnaire, including the

Factory/Supplier Information Form, if required by one or more of the institutions for which you are applying. This questionnaire will be forwarded to you by CLC if applicable. It is not included in this package.

Phase II

1) Obtain insurance and provide CLC with proof of acquisition 2) Register for Logos on Demand

3) Submit initial institution-specific product/designs via MyiCLC 4) Complete and send Product Specification Sheet(s) to CLC

5) Provide CLC with Authorized Manufacturers Agreements from all applicable suppliers/finishers that will be used throughout the product manufacturing process

6) Pre-order “Officially Licensed Collegiate Product” hologram labels or hangtags through J. Patton 7) Provide finished product samples for the applicable institutions that maintain this requirement

8) Register with the Fair Labor Association (“FLA”) if obtaining a license for one or more FLA affiliated institutions.

Phase III

1) Fully disclose factory site locations to CLC

2) Review, sign, and return CLC’s Special Agreement regarding Labor Codes of Conduct 3) Pay royalty advances via check for all applicable institutions

4) Review, sign, and return the CLC Standard Retail Product License Agreement and send it to CLC for full execution 5) Hologram labels will be shipped by J. Patton once the CLC License Agreement is fully executed by CLC

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The Collegiate Licensing Company

II. DOES A COLLEGIATE LICENSE MAKE SENSE FOR YOUR COMPANY?

MAKING A GOOD BUSINESS DECISION

Obtaining a license for CLC institutions requires a significant financial and time commitment. With more than 3,200 companies already licensed to produce a wide range of products, each institution is carefully analyzing every applicant and the products they submit. This can result in disapproved applications, most often by the larger institutions that generate significant sales. Although 86.3% of applications returned in 2012 were approved, the majority were for Local Licensees or Internal Campus Suppliers for emerging and mid-major institutions. The following statistics are for January through December 2012:

Applications Downloaded/Sent – 4,850 Applications Submitted to CLC – 862 Applicants that Completed Licensure - 582

Many companies that do receive a license are not well prepared for the ongoing costs of sustaining a successful collegiate business. Annual statistics have repeatedly shown that more than 50% of all new collegiate licensees were no longer licensed after just 18 months. The primary factor cited by these companies was their inability to secure sufficient retail distribution, sustain a revenue stream to justify maintaining the license, or inability to meet the reporting or other system requirements of CLC.

This information is not being provided to dissuade you from applying for a license with CLC. However, it is important that you consider the significant investment that will be required in becoming a successful licensee before proceeding with your application. Collegiate licensing is a terrific opportunity for many companies to generate revenue; however, a license alone does not guarantee success, nor is it meant for all companies.

INSTITUTION SELECTION & APPROVAL CRITERIA

Each institution utilizes its own decision-making process to determine how to grant licenses. Some institutions grant licenses to many manufacturers, often within the same product category/distribution channel, and others are more selective in the types of companies/products they license. Typically, institutions that are among the top 50 selling institutions are more selective than institutions with emerging licensing programs. For a full list of the top selling CLC institutions, please visit CLC.com.

Among the applicants for Standard Licenses, only those that excel in many of the following criteria are likely to be granted a license by the institutions:

1) Demonstrate a commitment and ability to invest in the collegiate market 2) Proven production and distribution capabilities

3) Established high standards for retailer customer service

4) Offer a new or unique product or an incremental means of distribution

5) Proven sales history with other collegiate/professional/entertainment licensors

6) Significant investments in retail, consumer, digital media and print media marketing efforts 7) Well-established track record as a successful business

8) Established relationships with major collegiate retailers 9) Strong brand equity or leadership status in a product category

10) Dedicated staff to manage the day-to-day licensing process and supply chain compliance 10) Internal infrastructure and systems to manage approval and royalty reporting processes

11) Demonstrated commitment to responsible sourcing and production of products throughout the supply chain.

Important Note: Several institutions have pre-existing exclusive agreements in some product categories and

distribution channels that prevent them from considering other vendors. Also, because of existing saturation in key categories (i.e., t-shirts, headwear, jerseys, footwear, balls, jewelry, collectibles, and others), applicants for some categories will receive a higher level of scrutiny from CLC and the institutions in the application review process. If you wish to confirm the institutions and products for which you intend to apply are not affected by existing agreements, please email your list of institutions and products to [email protected]. CLC will provide additional information on any exclusives that are currently in place based on the information provided.

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THE COSTS ASSOCIATED WITH BECOMING A LICENSEE

Because the costs associated with a license can vary greatly depending on the institutions and product categories being sought, CLC encourages you to do a thorough cost analysis based on the specific institution/product licenses you wish to acquire.

You should narrow the costs associated with the license(s) you wish to obtain by reviewing the information provided in this packet and by conducting some initial research (obtain insurance quote, determine existing technology capabilities, etc.). You should also consider the additional costs of marketing your product via advertising, trade shows, sales commissions, sample production, and internal administrative expenses.

The following graph demonstrates the range of potential costs associated with becoming a Local or Standard Licensee and can be used as a general reference guide in assessing the business opportunity for your company. The most effective way to reduce costs is to limit the number of institutions. By only requesting institutions you are prepared to immediately maximize, you can save on your initial fee outlay and speed the application process.

APPLICATION & ADMINISTRATIVE FEES

Please review the cost chart above to determine the application fee that will apply for the license type your company is seeking. This one-time fee will not be refunded, even if your company applies for a Standard License and is only approved for a Local License. A CLC administrative fee is not charged during the first year as a licensee, but will be applied upon renewal every year thereafter. Standard and Local Licensees are required to pay $1,000 and $100 annual administrative fees, respectively. Additional administrative fees may be assessed each year at renewal if your company fails to comply with the terms of the CLC License or Labor Code Agreements or if licensed for multiple labels that are managed by separate accounts.

ROYALTY ADVANCE FEES, ROYALTY RATES, MR/U’s

The vast majority of institutions charge annual advance fees to all Standard and Local Licensees. These advance fees are used as a prepaid credit balance against future royalties due on an institution-by-institution basis. Unused prepaid balances are retained by the institutions and, therefore, are not carried from one year to the next. Applicants are required to submit royalty advances in Phase III of the application process and upon renewal every year thereafter.

Each institution also has a royalty rate or minimum royalty per unit (“MR/U”) that is used in calculating the royalty payments. In the majority of cases, these royalty rates are charged against the final wholesale invoice price charged to the retail customer, although unique royalty arrangements may apply depending on your distribution strategy. In product categories where MR/U’s have been established, Licensee shall calculate royalties based upon the Collegiate Institution’s standard royalty rate or Minimum Royalty per Unit, whichever is greater. CLC requires all licensees to submit royalty reports online

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The Collegiate Licensing Company

through MyiCLC. All royalty payments are made to CLC on either a monthly (Standard) or quarterly (Local) basis, according to license type. The royalty rates and advance fees for all CLC partner institutions are provided on the enclosed CLC Institution & Fee List. A list of applicable MR/U’s will be provided in Phase III of the licensing process.

MyiCLC

MyiCLC is CLC’s free internet-based approval, royalty reporting and communication system. Approved applicants and licensees are required to submit all artwork, license requests, and royalty reports through MyiCLC. Most CLC communications to applicants/licensees are made via MyiCLC or email. It is imperative that applicants check MyiCLC and email regularly throughout the application process for correspondence and communication from CLC’s staff. Please review the MyiCLC Registration Form included in this package for the technical requirements for using MyiCLC.

ROYALTY REPORTING

Licensees are required to report royalties by license type (i.e. standard, Bowl, Conference, National Champions, Special Program), institution, product category, and retail location. Total units, gross sales, royalty bearing sales, and MR/U units must be included for each transaction. As noted above, royalty reports must be submitted through MyiCLC. The MyiCLC system allows licensees to manually enter the required sales information each reporting period or upload sales information in a formatted CSV file utilizing license type, institution, product category, and retail codes as provided by CLC. The MyiCLC system will calculate total royalties due and the licensee is required to submit payment within 10 days to CLC.

Due to the detailed royalty reporting requirements of CLC, you should ensure your company’s invoicing and sales systems can compile and if possible, export the required sales information into the CSV format required. Uploading royalty reports rather than manually entering the sales information is the most expeditious way to report royalties to CLC. Below is an example of the upload template required to report royalties.

LIABILITY INSURANCE

All licensees are required to obtain at least $1 million of product liability insurance, although some higher liability products may require as much as $5 million worth of coverage. As indicated by the First Year Licensing Costs chart, this can be a substantial expense depending on how much insurance your company already has in place. For many applicants, securing proper insurance is the most time-consuming and challenging of all application requirements. Within this packet we have provided detailed information regarding CLC’s insurance requirements and recommend that you forward it to your insurance agent/provider as soon as possible. You should obtain a quote from an insurance agent to ensure that the cost is not prohibitive, but you should NOT actually purchase the required insurance until Phase II.

CORPORATE RESPONSIBILITY (“CR”)

If you are obtaining a license with institutions that have codes of conduct for corporate responsibility requirements, you will be required to demonstrate your company’s commitment and capacities for ensuring that your products are made under safe, healthy, and respectful conditions. If approved, you will be required to sign and implement CLC’s Special Agreement Regarding Labor Codes of Conduct in Phase III of the licensing process. In addition, if the university is a member of the Fair Labor Association, you will be required to register with that organization in the appropriate category for your business in Phase II of the licensing process.

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Corporate Responsibility (“CR”) competency for both your company and throughout your supply chain has become extremely important to many CLC institutions. These standards are set by the highest office on many university campuses, and are a requirement, regardless of the other favorable factors that might positively affect your application. A company’s current and on-going commitment to CR throughout its supply chain, as well as its ability to meet the requirements and/or the comply with the investigations of the Fair Labor Association (www.Fairlabor.org) and/or the Worker’s Rights Consortium (www.Workersrights.com) will be considered by many institutions as an essential part of the approval and renewal process. At this time, the requirements of the Code Agreement essentially involve the following:

1. Commit to and adopt throughout your supply chain standards and practices that meet or exceed those established by the institutions, the FLA and/or the WRC.

2. Provide public disclosure of all factories/suppliers of your collegiate products, including suppliers of blank goods. 3. Communicate labor code standards within your company and with all factories/suppliers used as a source for

collegiate product. All factories/suppliers must agree to adhere to these standards.

4. Audit all factories on an annual basis utilizing appropriately trained internal staff or approved external monitoring organizations.

5. Register and comply with all FLA requirements, including the payment of annual fees, auditing of all factories/suppliers of collegiate product annually, and establishing remediation protocol if problems are found. Note that some schools may also require auditing through the WRC program.

Additional information regarding the Workplace Code of Conduct and FLA classifications, fees and requirements can be found on the insert in this application package. Please review this information carefully as requirements and fees vary depending on your company’s overall revenue and where you source collegiate product.

CLC LABELING REQUIREMENTS

All Standard and Local Licensees must provide CLC with an example of their company name label as it will be applied on their products in the marketplace. CLC will accept the following company name applications: hang tag, adhesive, or sewn-in label or licensee name applied directly to product or packaging (printed or etched) or added to CLC’s hologram hangtag. If you cannot provide an actual sample, please submit a graphic representation of how your company name will be applied on your product along with a written description.

Standard and Local Licensees are also required to order "Officially Licensed Collegiate Products" (OLCP) hologram labels and affix them to all CLC licensed items. During Phase II, CLC will provide you with specific guidelines for use of the hologram labels and instructions for purchasing them. The minimum cost of hologram labels ranges from $46 to $84 depending on the type, size, and the quantity you need. More information on the hologram labeling program can be found at www.Jpattonondemand.com.

SAMPLE REQUIREMENTS

All applicants are required to submit at least one product quality sample during Phase I of the application process. A quality sample is simply an example of the same product that you wish to have licensed that enables CLC/the institutions to determine its quality/viability. Quality samples DO NOT need to include specific institution logos, but they must include an example of your method of application (screenprint, embroidery, etc.). Applicants that apply for institutions that require quality samples (Florida, Florida State, Notre Dame, and Oklahoma) must include one additional quality sample for each of these institutions in addition to the primary quality sample that is submitted for all other institutions (i.e., if you want to add 10 institutions including Florida and Oklahoma, you should submit three quality samples- one each for Florida and Oklahoma and another for the eight additional institutions).

During Phase II of the application process you may be required to submit “finished samples.” Finished samples include the actual institution's logos and are presented in the exact way they would be presented to consumers. Finished samples should include your company's name and indicate where the Officially Licensed Collegiate Product hologram label will be affixed. "Finished Sample Institutions" require licensees to submit finished samples during Phase II of the application process, but licensees should not produce and submit them until notified by CLC that their Phase II design submission has been preliminarily approved.

Finished Sample Institutions

Alabama Florida Georgia Tech Stanford Texas (Austin) Auburn Florida State Notre Dame Tennessee

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Please note that quality/finished samples will not be returned to licensees and become the property of CLC and/or the institutions regardless of whether or not the licensee is ultimately approved by the institutions. The cost of sample production is wholly incurred by the applicant and will not be paid by CLC/the institutions. You should consider sample production costs as you determine the overall costs of licensure.

OBTAINING INSTITUTION LOGO SHEETS & DIGITIZED EMBROIDERY FILES

CLC requires licensees to obtain logo sheets via the J. Patton On Demand service, which is CLC’s digital artwork distribution program. Subscribers have access to production-ready digital logo sheets via the Internet and receive quarterly updates throughout the subscription period. You will receive detailed information on the service during Phase II. The annual subscription fees are listed below and more information can be found at www.Jpattonondemand.com:

1 Approved Institution $ 50

2 – 5 Approved Institutions $100

6 – 15 Approved Institutions $250

16+ Approved Institutions $500

Super Pack (16+ Institutions, Bowls, Conferences) $750

1 Approval Conference $ 50

2 - 5 Approved Conferences $100

6+ Aproved Conferences $250

1 – 5 Approved Bowls $100

6+ Approval Bowls $250

In addition, J. Patton’s On Demand service provides world-class embroidery digitizing, design, and file distribution for CLC partner institutions. This web-based program allows users to access a wide variety of marks expertly digitized for use in a wide range of embroidery applications at reasonable costs. Stitches On Demand is integrated with the Logos On Demand Asset library and database to provide a single, comprehensive solution for your licensing needs.

CERTIFICATION, TESTING, AND/OR LABELING REQUIREMENTS

Many products have certification, testing and/or labeling requirements in accordance with US law. Licensees must comply with all applicable laws, regulations, standards and procedures including the requirements of any regulatory agency, such as the United States Consumer Product Safety Commission (www.CPSC.gov), the Federal Trade Commission (www.FTC.gov), and the Food and Drug Administration (www.FDA.gov).

The list of products below is not all-inclusive; however, it does highlight the most common products or types of products that require additional attention, including certification, testing and/or specific labeling. You should submit all test results, certifications, and/or product and packaging labels with your application where special requirements are mandated by the US government.

• Consumables, Health and Beauty Products, and Sunglasses must meet all FDA testing and labeling requirements • Electrical products must be UL approved and certified

• All children’s (children being those 12 years of age or under) products, including toys, games, apparel, accessories, footwear, etc., must include the proper manufacturing and warning labels

• All children’s products must be tested and certified for lead content and phthalates in accordance with the Consumer Products Safety Improvement Act of 2008. Such products must also be in compliance with the Federal Hazardous Substances Act and the Flammable Fabrics Act.

Again, this is not intended to be an exhaustive list of requirements and regulations. Applicants and licensees are fully responsible for upholding the legal and governmental requirements/certifications for their respective products, as well tracking any changes and developments of all applicable requirements and regulations.

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ALTERNATIVES TO SEEKING A LICENSE

Pursuing a collegiate license does not make sense for all companies. If you decide not to pursue a license, receive a recommendation via the New Product Inquiry Process not to apply, or receive a denial on your application, there are alternative pathways to participate in the collegiate licensing industry, including:

1.

Become an Authorized Manufacturer for an existing collegiate licensee and supply blank goods for decoration under the licensee’s agreement, or, your company can provide the finished product and the existing licensee can handle all licensing approvals, packaging, accounting, sales, and distribution.

2.

If your application was denied due to a lack of existing distribution or retail relationships, you may want to establish sales of your generic product (i.e, without collegiate marks) with retailers that carry collegiate product and reapply in the future after you have established a proven sales history and retailer service record.

III. APPLICATION PROCESS – FINAL CONSIDERATIONS

THE IMPORTANCE OF A THOROUGH RESPONSE AND NON-REFUNDABILITY

Many institutions do not permit reconsideration of application requests for a period of one year following institution disapproval. As such, it is imperative that applicants review their application responses prior to submission to ensure thoroughness and to strengthen their prospects for receiving approval from the institutions. If an applicant fails to provide key information, the application cannot be processed and may be denied.

Ensuring that you have a viable chance for obtaining approval for your product is important before submitting your application. The application fee is NON-REFUNDABLE once submitted even if the institution(s) disapproves your request. In addition, if you submit for a standard license but are only approved by institutions within your state and transferred to CLC’s Local division, the difference in application fees is non-refundable. CLC will notify you in writing if your application is disapproved by any of the institution(s) you requested.

HOW LONG DOES THE APPLICATION PROCESS TAKE?

The Standard and Local application process time varies based on the number of institutions being sought. The fewer number of institutions requested, the more expeditious the application process. As such, CLC highly recommends that you only apply for institutions that you are prepared to maximize in the near future. To avoid time pressures and financial loss, we strongly encourage applicants to fully complete the licensing process before making any commitments to the collegiate industry including trade show attendance, retail pre-orders, etc. We treat all applicants equally and on a first come, first served basis and therefore cannot accommodate “rush” requests.

APPLICATION CHECKLISTS

A checklist will be provided to you for each phase of the licensing process to help guide you. The Phase I Checklist is included in this packet. The checklists are all-inclusive and should be your primary guide for ensuring that you

submit all required items. The checklist document itself is a reference and does not need to be submitted to CLC.

NEXT STEPS…

We appreciate your interest in obtaining a collegiate license and are committed to providing you with courteous and helpful customer service throughout the process. If you have decided to pursue a collegiate license with CLC, please proceed by reviewing and completing the CLC License Application. Please continue to use this guide as a reference and as you have questions or problems throughout the rest of the application process. You may also visit our web site at www.clc.com where further resources on the collegiate licensing industry can be found.

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CLC Application Checklist

Please use the following checklist to ensure all of the application requirements are returned to The Collegiate Licensing Company. All requirements are included on this list. The application will not be processed until all of the requirements noted below are received.

Completed License Application. Please be sure to indicate your desired license type on the application. All fields must be

completed on the application and it must be signed by an officer/owner of the company.

Application Fee ($100 for Local Applicant or $1,000 for Standard Applicant). Please make the check or money order

payable to “CLC.” Funds must be drawn from a US bank. The application fee is non-refundable.

Credit Report- All applicants must provide a credit report from one of the following:

● If you are a new company with no credit history or an individual, you must provide an individual credit report from one of these three agencies: Equifax, Experian, or TransUnion

● If you are an established company and have been in business for more than a year, you must provide a business credit report for your company from one or more of the following reporting agencies: Accruint, ClientChecker, Credit.net, Dun & Bradstreet, Equifax, Experian, or TransUnion

Financial Statements:

● If the company is public, please provide a copy of your most recent annual report.

● If the company is private, please provide an audited or CPA certified financial statements (most recent balance sheet is preferred, historical profit/loss statement is also acceptable).

● If the company is a start-up, please provide a copy of the company business plan.

Completed Strategic Marketing & Distribution Plan. You must follow the outline provided for the license type you are

requesting (Local or Standard) and provide all of the information requested. Please do not bind the document as it will need to be scanned and sent to the institutions for review. It is also acceptable to provide the Strategic Marketing & Distribution Plan in digital format (CD or flash drive) with the other application requirements.

Completed Factory/Supplier Information Form. Describe all organizations, including facilities owned and operated by

your company, from which you will source all or part of your collegiate goods. If you have more than four

factories/suppliers that will provide components or products, including blank goods, for your collegiate product line, please make copies of this form before completing.

Completed Institution List. Please mark the institutions on t he enclosed CLC list for which you seek licensure. The

advance fees will not be due until Phase III of the licensing process.

Quality Sample. Send at least one quality sample of each product for which you are applying. Send additional samples if

applying for any institution(s) that requires a quality sample (see Sample Requirements section of Application Guide for an explanation). Samples are at the expense of the applicant and will not be returned. Quality samples should not include institution logos but must include an example of your method of logo application (screenprint, embroidery, etc.). Please

contact CLC before sending over-sized samples.

Completed MyiCLC Registration Form. Complete and return the enclosed registration form.

Company Name Label Sample. All licensees must submit to CLC an example of how they will display their company name

on their products. CLC will accept the following company name application techniques: hangtag, adhesive, or sewn-in label; licensee name applied directly to product or packaging (printed or etched) or added to CLC’s hologram hangtag. If your application technique cannot be demonstrated please submit a visual/graphical representation of how your company name will be applied along with a written description.

Sales Catalog (preferred but optional). Provide a sales catalog for your company’s current product offering. Digital

catalogs are preferred.

UL Approval for Electrical Products (required if applying for a product that includes electrical components). A copy

of applicant's UL Approval must be included for applications for all electrical products.

All information should be returned together and clearly marked “Standard Application” or “Local Application” to the following address: The Collegiate Licensing Company

Attn: Standard Application or Local Application 1075 Peachtree Street Suite 3300 Atlanta, GA 30309

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Have questions? Refer to the enclosed License Application Guide, visit www.CLC.com, or email [email protected]

Applicants should read the entire “CLC Application Guide” document prior to completing the application. If you determine that a collegiate license makes sense for your company, please complete all sections of the application below. This is a fillable PDF Form which will allow you to type your responses directly into the document and print. If you are using Adobe XI Reader or a full version of Adobe software, you can also save the document for future editing.

License Type Selection

All applicants must select a single license type. Please refer to the “Deciding What Type of License to Request” section of the CLC Application Guide to determine which license type is best for your company. Indicate the license type you are applying for by selecting the associated box below. If you fail to designate a license type, it will significantly delay the application process.

Standard Local

Company Information

Company Name __________________________________Owner Name ____________________________ Street Address___________________________________________________________________________ Mailing Address__________________________________________________________________________ City__________________________ State _______Zip ___________ Phone _________________________ Fax ________________Toll Free __________________ Company Website:__________________________

Contact Information

Provide the primary contact information for each area listed below.

Name Title Phone Number Email Address

Licensing Sales/Marketing Legal

Accounting

Corporate Responsibility

Company also known as___________________________________________________________________ Company also doing business as____________________________________________________________

Have you ever applied with CLC for licensure or held a license through CLC, under this or any other company name? Yes No

If Yes, attach a separate sheet explaining why your company discontinued the process or license and outline steps that will be taken to ensure that the license will remain in good standing in the future.

Have any claims been filed against this company or related entities for trademark, copyright, patent infringement, or product liability? Yes No

If Yes, attach a separate sheet explaining all details, including final resolution.

Company Description

Type of organization (select one):

Corporation Partnership S Corporation

Limited Liability Company Proprietorship Other:___________________ Company Inception Date____________ State_______ Employer ID:_________________________

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Have Questions? Refer to the enclosed License Application Guide, visit www.CLC.com, or email [email protected]

The Collegiate Licensing Company

License Application, Page 2

Owner/Officer Information - provide the name and title of all primary owners and officers of the company.

Name Title Years in Position

Owner/Officer #1 Owner/Officer #2 Owner/Officer #3 Owner/Officer #4 Owner/Officer #5

Is your company a certified minority or woman-owned business? Yes No

If Yes, provide certification number: _________________________

List any previous names for this business and/or names of businesses operated by any principal of this company within the last five years _________________________________________________________________________________ _______________________________________________________________________________________________ Company’s gross revenue/sales volume for past three years (check one for each year):

(Year)______ $0 - $50k $50k - $500k $500k - $5m $5m - $10m $10m - $50m $50m + (Year)______ $0 - $50k $50k - $500k $500k - $5m $5m - $10m $10m - $50m $50m + (Year)______ $0 - $50k $50k - $500k $500k - $5m $5m - $10m $10m - $50m $50m + Total # of employees ________

How many employees will be dedicated to the collegiate program in each of the following areas?

Administration: ________ Sales:________ Royalty Reporting:_______Corporate Responsibility:_________ Are you the Parent Company? Yes No

If No, provide parent name and location: ______________________________________________________________

_______________________________________________________________________________________________ Are you (or related entity) a retailer of the finished product? Yes No

If Yes, provide a complete description of your retail operation. If the related entity will retail the finished product, please provide the entity’s name and a description of the relationship between your two companies.

_______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________

Credit/Financial History

Credit Report- All applicants must provide a credit report from one of the following:

• If you are a new company with no credit history or an individual, you must provide an individual credit report from one of these three agencies: Equifax, Experian, or TransUnion

• If you are an established company and have been in business for more than a year, you must provide a business credit report for your company from one or more of the following reporting agencies: Accruint, ClientChecker, Credit.net, Dun & Bradstreet, Equifax, Experian, or TransUnion

Financial Statement- All applicants must provide one of the following:

• If the company is public, please provide a copy of your most recent annual report.

• If the company is private, please provide an audited or CPA certified financial statement (most recent balance sheet is preferred, historical profit/loss statement is also acceptable).

• If the company is a start-up, please provide a copy of the company business plan.

Have there been any voluntary or involuntary bankruptcies of the company or related entities? Yes No

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The Collegiate Licensing Company

Bank Reference

Bank Name_________________________________Contact Name_________________________________ Street Address___________________________________________ City____________________________ State_____Zip________________Phone ____________________ E-mail____________________________ Date account was opened:_______________Average Balance:____________Credit line:________________

Credit Reference

Creditor Name_______________________________Contact Name________________________________ Street Address___________________________________________ City____________________________ State_____Zip________________Phone ____________________ E-mail____________________________ Date account was opened:___________ Time doing business with Creditor:__________

Type of business: ____________ Credit limit placed on account:____________

Amount of credit line extended:____________ Account current? Yes No

General characteristics of relationship: ________________________________________________________

Trademark License Information

Identify any current trademark licenses held by your company including licensor information, licensed product(s) and length of license. If other licenses are currently held, please attach a separate list.

Licensor:____________________________Contact:______________________ Length of License:__________ Gross Royalties Paid: Last Year_________ Two Yrs. Ago__________ Three Yrs. Ago__________ Product(s) Licensed:________________________________________________________________________ Licensor:____________________________Contact:______________________ Length of License:__________ Gross Royalties Paid: Last Year_________ Two Yrs. Ago__________ Three Yrs. Ago__________ Product(s) Licensed:________________________________________________________________________ Licensor:____________________________Contact:______________________ Length of License:__________ Gross Royalties Paid: Last Year_________ Two Yrs. Ago__________ Three Yrs. Ago__________ Product(s) Licensed:________________________________________________________________________

Production & Supply Chain Information

Will all of your collegiate products—from raw material to finished product— be manufactured in facilities that are owned and operated by your company? This includes finished products and/or blank products.

Yes No

If No, which best describes how your finished product(s) are manufactured? Select the answer that most closely describes your business model:

Assembly of outsourced raw materials/components and logo application of products are conducted in company-owned facilities

Purchases fully finished blank goods from others and decorates/applies logo to product in company-owned facilities, or visa versa

Combination: less than half of products are outsourced to manufacturers/contractors for all production processes Combination: more than half of products are outsourced to manufacturers/contractors for all production processes All manufacturing processes, including assembly, production of blank goods and finished products, and

decoration/logo application, are outsourced Undetermined

How many manufacturing facilities, including your own, will be used to produce your collegiate products? Specify #:______ Unsure

Do any of these facilities subcontract work to other manufacturers? Yes No Unsure

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The Collegiate Licensing Company

Through what means will you procure all components (including blank goods) of your collegiate product? Indirectly, through Agent/Intermediary* to factories

Directly to contracted factories

Through a distributor or supplier of advertising specialty/promotional products Through factories your company owns and operates

Self-employed artisan working outside a factory Through a digital media designer and/or developer

Combination – please specify type and percentage of each type:_________________________________________ Other – please specify type and percentage of each type:______________________________________________ * “Intermediary” includes any organization that exists between your company and the facilities where the manufacturing and/or the decoration of the product takes place.

Does your company have a formal Corporate Responsibility (“CR”) strategy and/or code of conduct? Yes No

If Yes, please provide additional information on your CR strategy and a copy of your code of conduct with your strategic marketing and distribution plan.

Are you an advertising specialty or promotional products distributor or supplier? Yes No

If Yes, please indicate what promotional products industry trade organization memberships you hold.

_______________________________________________________________________________________________ What percentage of your collegiate product will be sourced through your membership in these organizations? _______%

Insurance Reference

Please forward the enclosed insurance information to your insurance agent. While you should not purchase your insurance coverage at this time, we highly recommend that you obtain a quote and ensure that your insurance carrier can provide the necessary insurance coverages. Please provide below the contact information for the insurance carrier from which you will obtain coverage. CLC and its Institutions are not responsible for any costs associated with insurance purchases made prior to license approval.

Insurance Company__________________________________Agent Name__________________________________ Street Address_______________________________________ City________________________________________ State_____Zip________________Phone _____________________ E-mail__________________________________

Retail References

List two (2) retail references CLC can contact who will provide an opinion on your company’s product line, product quality, service and delivery or provide references from retailers who have shown an interest in your product line. Retailer Name__________________________________Contact Name____________________________________ Phone ____________________________________ E-mail______________________________________________ Retailer Name__________________________________Contact Name____________________________________ Phone ____________________________________ E-mail______________________________________________

Systems

Please indicate the accounting software that your company utilizes for sales and invoicing: Impress Great Plains JD Edwards Macola MAS90 Oracle Oak Street Peachtree Pro Com Proprietary Software/Custom Other:__________________ Quickbooks Sage Pro SAP Shop Works Does your company have EDI capabilities? Yes No

CLC requires licensees to submit royalty sales by institution, product category, retailer, and if licensed for special programs, by license type.

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The Collegiate Licensing Company

Will your accounting system allow you to export this information in .CSV format for upload into CLC’s system? Yes No

To expedite licensing, CLC utilizes an online portal. Licensees are required to submit all artwork, license requests, and royalty reports through the online system. In addition, CLC communicates the majority of licensing notifications and updates via the portal and e-mail.

Do you have company-wide email? Yes No

Name of Internet Service Provider: ________________________________________________________________ Internet bandwidth: T3 T1 Cable DSL ISDN 56K 28.8 Other:_____________ What design/graphic software does your company use?________________________________________________

Prospective Licensee Statement (original signature required)

1. I hereby affirm that my answers to the above questions are, to the best of my ability, true, accurate, and complete. The Collegiate Licensing Company (CLC) will verify information through available resources where applicable. I understand that any license which may be granted to me by CLC will be subject to immediate termination, without the return of any amount paid or the abatement of any amount due, in the event CLC finds that I have supplied false, misleading, fraudulent, or incomplete information.

2. I hereby acknowledge the proprietary nature of all terminology and marks of CLC’s clients. I agree that I will make no use of any of CLC’s clients’ marks or terminology without written consent of CLC. I understand the acceptance of this application by CLC does not constitute a license or that such acceptance requires CLC to enter into any licensing agreement.

3. I hereby agree that my product or concept submitted upon request will be reviewed and accepted or rejected at the discretion of CLC and its partner universities.

4. I hereby acknowledge that the submission of any and all product samples is at my expense and that product samples will not be returned.

The Collegiate Licensing Company has agreed that any product sample(s), mock-up(s), etc. that I submit upon request will be examined for approval only by CLC and the respective client(s). I acknowledge that CLC may license other products similar to mine without obligation to me.

Officer/Agent of Co. (Print Name): _________________________________ Title:______________________ Signature: _________________________________________________Date: ________________________

Once all questions have been answered, please print, sign and return the application with the additional items indicated on the checklist to:

Collegiate Licensing Company

Attn: Standard or Local Licensing (depending on type of license requested) 1075 Peachtree Street Suite 3300

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Factory/Supplier Information

Provide the information requested below for all factories and suppliers, including facilities owned and operated by your company, from whom you will source your collegiate goods. This includes the manufacturer of blank products on which the collegiate logo will be applied. If you have more than 4 suppliers, please make copies of this form. This is a fillable PDF Form which will allow you to type your responses directly into the document and print. If you are using Adobe Reader XI or Adobe software, you can also save the document for future editing.

Manufacturer/Supplier Name:______________________________Location: City______________________Country________________ Product supplied by Manufacturer/Supplier:__________________________________________________________________________ Does your company have an equity/ownership stake in the factory? Yes No If yes, what percentage? ____________%

If your company does NOT own the facility, please specify the owner: _____________________________________________________ What % of your collegiate product will be sourced from this factory? _______% What % of this factory’s production is yours? _______% How long have you been sourcing product consecutively from this manufacturer/supplier?____________________________________ Please check the box that best describes the nature of this facility/location’s business:

Manufacturing facility Corporate/Sales office Distributor Non-factory artisan Other: _______________________ When was the date of your last audit/onsite visit to this facility? ______________________

Please check the box that best describes the business association of this entity.

Owned & operated by your company and/or a subsidiary Contractor (applies the collegiate logo to the product) Manufacturer (produces product & applies logo) Agent/Intermediary*

Vendor/Supplier (provides blank goods) Other: _____________________________________________ Manufacturer/Supplier Name:______________________________Location: City______________________Country________________ Product supplied by Manufacturer/Supplier:__________________________________________________________________________ Does your company have an equity/ownership stake in the factory? Yes No If yes, what percentage? ____________%

Vendor/Supplier (provides blank goods) Other: _____________________________________________

“Intermediary” includes any organization that exists between your company and the facility/ies where the manufacturing and/or the decoration of the collegiate product occurs.

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Strategic Marketing & Distribution Plan Outline

STANDARD Applicants

Please follow the outline provided below to prepare the required marketing plan for the institutions and products for which you seek a license. All information requested must be provided. The plan should be typed and stapled (not bound) or provided in a digital format on either a CD or flash drive. Include your company name and address at the top of the plan.

I. Company Information

A. Provide a brief history of the company including years in business, primary business operations (products/markets), and a brief bio for all owners/officers of the company.

B. Provide your company’s mission statement.

C. Provide information on your company’s efforts related to corporate responsibility including codes of conduct, environmental responsibility, sourcing practices, work environments, etc.

D. Provide a concise statement of what your company is trying to achieve in the collegiate market and include a summary of any marketplace research that you have done. Indicate what strengths your company brings to the collegiate market versus your competitors.

II. Product Information

A. Provide a complete list of the products that your company currently manufactures or a digital copy of your sales catalog. B. Furnish a complete list of products for which you are requesting licensure including the minimum order amount, wholesale price point, and the suggested retail price of each product. Provide images/renderings of potential collegiate designs.

C. Product Launches: Describe your “go-to-market”/launch plan for your new college program, as well as your strategy for future new product launches.

D. Labeling: CLC requires that all licensed products sold at retail include your company name and the Officially Licensed Collegiate Products (OLCP) hologram label. Hangtags are required on all apparel and stickers are required on non-apparel items. Provide a sample of your company name label and indicate where and how the OLCP hologram would be applied to your products.

III. Sales Information

A. Sales Projections: Provide realistic collegiate sales projections by product category for the next three years (in wholesale dollars and units).

B. Current Distribution: Provide a list of current top 10 retail accounts; include the buyer/contact name, phone number, vendor account number, length of relationship, and overall percentage of business done for each.

C. Target Retail Market: Supply a complete list of retail accounts or other channels of distribution that you plan to target for collegiate sales. If any of these accounts have expressed an interest in your product, provide the buyer/contact name and phone number for each.

D. Target Consumer Market: Identify and describe your target consumer market, including who your consumers are and what the demand is for your product.

E. Sales Representation: Provide detailed information regarding your current sales representatives, whether internal or external and the geographic region they cover.

F. Distributors: If your company utilizes distributors, provide the name and address of each distributor, the length of time doing business with the distributor and percentage of product sold through each.

IV. Marketing & Advertising

A. Marketing Philosophy: Describe your view of the importance of investing in marketing to grow your individual college business, as well as to grow the overall “college” business.

B. Marketing Budget: Provide details of your marketing budget, including the percentage of your collegiate sales total that you expect to reinvest back into marketing to grow your college business annually and an allocation of how you plan to invest your marketing budget during the next 12 months to promote your college program.

C. National Marketing: Describe how you plan to promote your overall college program to retailers and consumers.

D. Local Marketing: Describe how you plan to promote your association with individual colleges and universities to their students, fans, and alumni.

E. Digital Marketing: Describe how you plan to utilize digital media, including traditional internet and social media. F. Print Marketing: Describe, if any, your current plans to promote your college program utilizing print media.

G. In-Store Marketing: Provide a list of retailers you expect to execute in-store marketing programs with during the first 12 months of the license term and how you typically work with retail accounts to execute in-store marketing programs. H. Co-Op Dollars: Provide information on the utilization of co-op financial commitments with existing or planned retail

accounts for your collegiate product and indicate if you would you be open to partnering with other licensees and CLC to combine financial resources to bring larger marketing initiatives to retailers.

I. Tradeshows: Provide a list of all tradeshows that you currently attend, along with those that you will attend to showcase your college product assortment.

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Strategic Marketing & Distribution Plan Outline

LOCAL Applicants

Please follow the outline provided below to prepare the required marketing plan for the institutions and products for which you seek a license. All information requested must be provided. The plan should be typed and stapled (not bound) or provided in a digital format on either a CD or flash drive. Include your company name and address at the top of the plan.

I. Company Information

A. Provide a brief history of the company including years in business, primary business operations (products/markets), and a brief bio of each owner/officer of the company.

B. Provide a concise statement of what your company is trying to achieve in the collegiate market and include a summary of any marketplace research that you have done. Indicate what strengths your company brings to the collegiate market versus your competitors.

II. Product Information

A. Furnish a complete list of products for which you are requesting licensure including the minimum order amount, wholesale price point, and the suggested retail price of each product. Provide images/renderings of potential collegiate designs.

B. Provide your strategy and timeline for product launch.

C. Labeling: CLC requires that all licensed products sold at retail include your company name and the Officially Licensed Collegiate Products (OLCP) hologram label. Hangtags are required on all apparel and stickers are required on non-apparel items. Provide a sample of your company name label and indicate where and how the OLCP hologram would be applied to your products.

III. Sales Information

A. Sales Projections: Provide realistic collegiate sales projections by product category for the next three years (in wholesale dollars and units).

B. Current Distribution: Provide a list of your current top 10 retail accounts or other distribution channels; include the buyer/contact name, phone number, vendor account number, length of relationship, and overall percentage of business done for each.

C. Target Retail Market: Supply a complete list of retail accounts or other channels of distribution that you plan to target for collegiate sales. If any of these accounts have expressed an interest in your product, provide the buyer/contact name and phone number for each.

D. Target Consumer Market: Identify and describe your target consumer market, including who your consumers are and what the demand is for your product.

E. Sales Representation: Provide information regarding your current or planned sales representatives and the geographic region they cover.

F. Distributors: If your company utilizes distributors, provide the name and address of each distributor, the length of time doing business with the distributor and percentage of product sold through each.

IV. Marketing & Advertising

A. Describe how you plan to promote your overall college program to retailers and consumers and how you plan to promote your association with individual colleges and universities to their students, fans, and alumni.

B. Provide details of your marketing budget including information on in-store, print, and digital media (Internet, social media) plans for advertising.