Wherever NIKE operates around the globe, the company is guided by the following Code of Conduct, and binds its business partners to the code's principles with a signed Memorandum of Understanding.

THE NIKE CODE OF CONDUCT

NIKE, Inc. was founded on a handshake.

Implicit in that act was the determination that we would build our business with all of our partners upon trust, teamwork, honesty and mutual respect. We expect all of our business partners to operate on the same principles.

At the core of the NIKE corporate ethic is the belief that we are a company com prised of many different kinds of people, appreciating individual diversity, and dedi cated to equal opportunity for each individual.

NIKE designs, manufactures and markets sports and fitness products. At each step in that process, we are dedicated to minimizing our impact on the environment. We seek to implement to the maximum extent possible the three "R's" of environmental action: reduce, reuse and recycle.

We seek always to be a leader in our quest to enhance people's lives through sports and fitness. That means at every opportunity whether in the design, manufactur ing and marketing of products; in the environment; in the areas of human rights and equal opportunity; or in our relationships in the communities in which we do business -- we seek to do not only what is required, but, whenever possible, what is expected of a leader.

There Is No Finish Line.

MEMORANDUM OF UNDERSTANDING (NIKE)

1. Government regulation of business

(Subcontractor/supplier) certifies compliance with all applicable local gov ernment regulations regarding minimum wage; overtime; child labor laws; provisions for pregnancy, menstrual leave; provisions for vacation and holi days; and mandatory retirement benefits.

2. Safety and health

(Subcontractor/supplier) certifies compliance with all applicable local gov ernment regulations regarding occupational health and safety.

3. Worker insurance

(Subcontractor/supplier) certifies compliance with all applicable local laws providing health insurance, life insurance and worker's compensation.

4. Forced labor

(Subcontractor/supplier) certifies that it and its suppliers and contractors do not use any form of forced labor prison or otherwise.

5. Environment

(Subcontractor/supplier) certifies compliance with all applicable local envi ronmental regulations, and adheres to NIKE's own broader environmental practices, including the prohibition on the use of chloro-flouro-carbons (CFCs), the release of which could contribute to the depletion of the earth's ozone layer.

6. Equal opportunity

(Subcontractor/supplier) certifies that it does not discriminate in hiring, sal ary, benefits, advancement, termination or retirement on the basis of gender, race, religion, age, sexual orientation or ethnic origin.

7. Documentation and inspection

(Subcontractor/supplier) agrees to maintain on file such documentation as may be needed to demonstrate compliance with the certifications in this Memorandum of Understanding, and further agrees to make these docu ments available for NIKE's inspection upon request.