[Date]

This letter is being provided to all Disney licensees and vendors currently authorized to produce Disney branded products in this facility.  As a courtesy, this letter is also being provided to licensees and vendors that have applied for authorization to produce in this facility.

On [Date Audit Received], Disney received a second audit of [Facility Name and ILS#], located in [City], [Country], indicating that this Facility still does not meet Disney’s Minimum Compliance Standard (“MCS”) under the Disney Code of Conduct for Manufacturers.

In accordance with prior notice and Disney’s ILS Program, production authorization for this Facility has been revoked. All Licensees and Vendors using the Facility must promptly cease producing Disney branded products and promptly remove any and all Disney branded products whether complete or in process (including any molds and materials), not to exceed 30 days from Disney’s written notice, or as otherwise may be required by Law. This Facility will be ineligible for Disney branded production for 12 months following the date of this notice.

The following is a summary of all violations of the Disney Code of Conduct for Manufacturers, prioritized by severity, for your reference.

MCS VIOLATIONS

1. Monitoring and Compliance

Compliance with wage requirements and overtime hour limitations cannot be verified due to discrepencies between the documents provided by the facility management for review and/or the information provided by employees during interviews.

NON-MCS VIOLATIONS

1. Health and Safety/Sanitation

Poor housekeeping practice in the production areas.

2. Other Laws

      Employment contracts have not been established with all employee as required.

If you have already notified us that you are no longer using this Facility, this letter will serve as your notice that the

Facility can no longer be used to produce Disney-branded products.