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Input paper: Operating License for New AIESEC Operational Units 1. Introduction The present document aims to support existing entities (MCs and LCs) to explore a new way to increase our physical reach towards AIESEC 2015 – Operating licensing. This concept will enable a fast responding towards requests for expansions, as well as ensure a proper and practical understanding of a new market, before the full establishment of an LC or MC. The document is structure into 7 parts: 1. Introduction 2. Important definitions 3. Purpose of the Operating License 4. Principles of the Operating License 5. Process and steps for the concept implementation 6. Frequently asked questions 7. Appendix: Building a Memorandum of Understanding (MoU) Disclaimer: For the purpose of this document the Operating License is referred to as “License“, the recipient of the Operating License is referred to as “licensee or expansion team” and the issuer of the License is referred to as the “licensor.” This is not to be confused with the licensing of AIESEC’s brand and trademark, which is a separate legal process which can only be conducted through Stichting AIESEC IP Licensing.

2. Important definitions What is a license? License or grant a license means to give permission, as well as a document recording that permission. A license may be granted by a party ("licensor") to another party ("licensee") as an element of an agreement between those parties. Is an authorization (by the licensor) to use the licensed material (by the licensee). What is an operational unit? It’s a subsidiary that delivers a specific product to customers in places where there isn’t an established branch of the company or organization that owns the product. An operational unit has its own assets, liabilities and functions, as if it were an independent company/organization. The only difference is that it is owned by an established branch and needs to operate under its supervision and authority.

3. Purpose of the Operating License The purpose of the License is to give to potential new entities the opportunity to run specific AIESEC operations and deliver a specific part(s) of the AIESEC Experience, as a means of introducing AIESEC to the local market and to increase the speed at which we can expand into new entities.


4. Principles of the Operating License 

The license should exclusively be given to a group of students of higher education; o The students should always form an expansion team of minimum 4 people and submit an application form (template available) to a possible licensor; o After the application is accepted, the expansion team should receive trainings from the licensor that can be both physical and virtual, and afterwards start the operations under the license; o The expansion team should always have a minimum of 1 team leader and 3 team members. The licensor should be an existing AIESEC Member Committee, when the license is given to students from a country/territory where AIESEC does not exist yet; o The licensor should audit, train and track all activities and operations run by the expansion team. The license time frame varies between 3 to 6 months, and may be renewed upon mutual agreement between licensor and licensee and completion of at least 75% of the planned goals by the expansion team; o After the license expires the expansion team can either extend the time and scope of activities, or apply to become an official extension of AIESEC (if it’s a country/territory) or to become a local committee (if it’s a city/university). The Licensor and the expansion team (licensee) should always sign a memorandum of understanding (MoU), outlining the main responsibilities of both parties and a clear plan for the expansion team. If it’s a new country/territory, a copy of the MoU should be sent to AI and global membership sub-committee; The expansion team has a limit scope of operations to run. o For new operational units in countries/territories where AIESEC is not yet present, the expansion team can just establish partnerships with institutions of higher education, run GCDP OGX (keeping in mind XPP), register the global trademark on behalf of Stichting AIESEC IP Licensing and do a further research (especially focused on legality) to explore the possibility to deliver other parts of the AIESEC XP, after the license expires; o For new operational units within the same country the scope of operations and concrete plan can be defined by the licensor (MC or LC).

5. Process and steps for the concept implementation a) Interested student(s) approach(es) AIESEC entity (potential licensor) b) The licensor sends a welcome booklet and application form. If it’s a new country/territory the licensor should notify AIESEC International, Expansion Global Support Team (GST) and Membership Sub-committee that they will implement the Operating License concept; c) Student(s) submits an application for approval to get a license. Before the approval of the license the licensor should run an interview with the expansion team; d) If the application form is approved by the licensor, with the recommendation from the expansion GST (if it’s a new country/territory), the expansion team receive a training (physical or virtual), which can include exchange and/or international CEED. e) After the training the Licensor and Expansion Team sign a MoU and define a clear plan for the new operational unit. f) The licensor track and support the expansion team of the new operational unity on the delivery of their plan. Upon successful completion of the plan, the new operational unit can


directly apply to become an official extension (if it’s a new country/territory) or to become a Local committee (if it’s within the same country/territory). Additional Notes:  If the licensor have already selected (and trained) an expansion team, all the principles and steps are still valid, except the parts related to the application form and expansion team selection and training.  The licensor also has the freedom and flexibility to have different processes for the license implementation, as far the license principles are not violated.

6. Frequently asked questions (FAQ’s) i.

Why we just can run OGX GCDP under the license to new countries/territories? As we are not yet legally registered in those places, we need to mitigate the risks for the organization. Run ICX most of the times imply be legally registered in the country, while OGX is more flexible, especially if we already have the authorization from the university.

ii.

How can we count on myaiesec.net the TMP, TLP and OGX GCDP Experiences delivered by the new operational units? The new operational units will use the myaiesec.net account of the licensor entity, which means that all experiences will count for the licensor entity.

iii.

Which entities in the network are already prototyping this concept and who should I contact for further information? As of now, we will prototype this concept in the expansion initiatives of AIESEC to Albania and Nepal, which will work as operational units of AIESEC Italy and India. For internal expansions the concept is being prototyped by AIESEC in Ethiopia. If you’re interested to prototype this concept or you have any questions, please contact AIESEC International’s expansion manager at daudov@ai.aiesec.org or the Expansion Global Support Team Leader at nicole.cliteur@gmail.com Note: More FAQ’s will be added after the document is released to the network, since this is the 1st draft of the input paper.


7. Appendix: Building a Memorandum of Understanding (MoU) Terms and Sections    

Purpose of Collaboration: This section should outline why the license is being issued and the end goals of the collaboration between the licensor and licensee. Forms of Collaboration: This lists the terms of the license and expected actions for both parties involved. This section should be as detailed as possible. Revenue Sharing Model: This outlines the financial conditions for any services provided by the new entity and how profits will be split between the two parties. Other sections should not be altered without consultation, as they contain important legal conditions.

Memorandum of Understanding – Example Between: [Insert Name of Licensor] and [Insert Name of Licensee] [Licensor] and [Licensee] will agree to sign this Memorandum of Understanding (“MoU”), which presents a statement of intent by the parties to work together, and outlines the basis for collaboration and joint activities in fields of mutual interest. PURPOSE OF COLLABORATION 1. 2. 3. FORMS OF COLLABORATION: 

     

[Licensee] will select a team of minimum 4 people who will be part of the expansion team, that will focus on recruiting exchange participants(EPs) from [Expansion Place] to go on AIESEC Internships and research the process to make [Expansions Entity] a legal entity in the [country/city]. Out of the 4 AIESEC Programmes, only the Global Community Development Program will be offered, unless otherwise specified and mutually agreed upon. Out of the expansion team, one volunteer must be elected as team leader to communicate with [Licensor]. The exchange participants recruited would be under [Licensor] account’s on www.myaiesec.net. A 6 months plan will be presented to the National Team of [Licensor] before [deadline], in a framework provided by [Licensor] to [Licensee]. Once the plan is presented, the [Licensor] would deliver further virtual trainings for [Licensee] members, as suggested by the elected representative of the recovery team. Once [Licensee] fulfills a minimum of 75% of their goals, as mentioned in the 6 months plan, they will get the chance to extend the scope of their activities. The scope of activities


will be defined by [Licensor], in consultation with AIESEC International (if it’s a new country/territory) If the [Licensee] run any other form/type of AIESEC operations that are not specified on this MoU, the effects of this MoU will be suspended.

REVENUE SHARING MODEL   

The cost for each Exchange Participant to go for the Global Community Development internship (GCDP) will be [cost in euros]. The revenue will be shared on a [ratio] between [Licensor] and [Licensee]. All costs with respect to international transfers will be borne by [Licensee].

TIME FRAME AND TERMINATION  

The duration of the MOU shall be 6 months from the date of signing. However, there will be a review to evaluate progress and relevance once the plan of action is submitted to [Licensor]. The review may lead to refocusing from time to time. This memorandum will be in effect from [insert duration]and is renewable depending on various factors, to be defined by[Licensor], in consultation with AIESEC International (if it’s a new country)

Date:

Representative of [Licensor]:

Representative of [Licensee]:


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