Date: November 1, 2005

To: All Schreiner University Employees

From: Dr. Summerlin, President

Re: Campus Conduct Hotline

As part of our university’s continuing effort to promote “zero tolerance” of unethical conduct in the workplace, I am pleased to announce a new service. It is called Campus Conduct Hotline© and it is designed to minimize any apprehension you may have and make it possible for you to report concerns about possible violations of our institution’s Code of Ethics and employment policies.

The University continues its commitment to having an open door policy and encourages you to report concerns to your supervisor, departmental Vice President, the Director of Human Resources or the President of the University. However, past issues within specific public companies such as Enron and WorldCom and the enactment of the Sarbanes-Oxley Act by the U.S. Congress have prompted others to re-evaluate their system and put methods into place making violations easier to uncover. Although not legally required to do so, Schreiner University has made a commitment to review our systems and processes and make changes if necessary.

One such change is the implementation of the Campus Conduct Hotline© system being offered through our liability insurance carrier EIIA. The Campus Conduct Hotline© system is available for your use around the clock, seven days a week. Because the Hotline is operated by an independent organization, any calls made through this Hotline are completely confidential and anonymous.

Using this new reporting service is easy. If you have a question or concern about a possible violation of our Code of Ethics or employment policies, simply dial toll-free to 866-943-5787.

Once you have dialed the toll-free number, here is how the reporting and follow-up processes work:

• Your call will be greeted promptly and courteously by a person who makes certain you understand the Campus Conduct Hotline© program and how it functions. If you prefer to make your report in a language other than English, just let the person who answers know and he or she will arrange for a translator to participate.

• At the beginning of the interview, you will be provided with a five digit, randomly generated case number that you should use to check back for updates and requests for additional information. Be sure to write this number down and remember where you put it! Other than yourself, no one at Schreiner University will be provided this case number or have access to gain it.

• You will then be interviewed about the question or concern that is on your mind.

• Your interview will not be recorded. Instead, the interviewer will be typing notes of your conversation. Whether or not you choose to provide your name is completely up to you.

• Within one business-day of your call, a summary of the interview will be forwarded to our institution. Our goal will be to have a basic response back to you in five business days.

• To receive your response, you will need to call back and provide the five digit case number that has been assigned to you. At that time, you might be asked to provide additional information or to call back at a later date. You will be able to keep checking back for updates until your case is closed.

Because of the built-in confidentiality, it is important that you try to be as specific as possible about the information you provide. For example, we will need to know the name of the department you work in and the location you are calling about. And please be sure to call back in five business days to check to see if any additional information is needed. Alternatively, if you would like someone to contact you directly, you can leave your name along with a phone number where and when you would prefer to be called.

To repeat, at no time is any caller required to identify himself or herself and all information provided can be completely confidential and anonymous.

It is important to recognize that the Campus Conduct Hotline© is not regarded as a normal venue for registering concerns, and it is emphatically not to be employed casually or inappropriately. However, we are committed to maintaining the highest ethical standards in our workplace. If you experience or observe what you believe is inappropriate behavior and feel you have exhausted all other reporting avenues, I hope you will use the Campus Conduct Hotline© to report it.