2010 Mountain States Cup Advertising and Sponsorship Proposal

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The 2010 Mountain States Cup series of 38 mountain bike events over 9 weekends will be broadcast on NBC Universal Sports Network and available as Video On Demand from www.universalsports.com. This event represents a high-value low-risk opportunity to advertise to a key 18-24 male demographic.

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2010 Mountain States Cup Advertising and Sponsorship Proposal

  1. 1. 2010 MSC The Premier Mountain Bike Championship Series in the United States partnership opportunity 2010
  2. 2. VAST Action Yeti Cycles Devon Balet Photography Devon Balet Photography VAST Action Yeti Cycles VAST Action VAST Action VAST Action VAST Action Devon Balet Photography VAST Action
  3. 3. Mountain biking is more than a sport – it is a lifestyle. The Mountain States Cup is more than the top regional mountain bike series in the country—it is a catalyst for celebrating the human spirit, of connecting people and nature, of green technology and responsible stewardship, and of athletes who push themselves to the limit surrounded by their friends and families. This proposal is very comprehensive, and shows how event sponsorship and advertising of the Mountain States Cup can be a high-value, low-risk way of promoting your products and services. The Mountain States Cup has been in existence for over 20 years, and we have worked for the past 18 months to ensure we have the right team in place to be able to expand the event to broadcast television with NBC Universal Sports, to Video On Demand over the Internet, and to a larger non-endemic market. We know how to drive value, and we know that any program involving your brand needs to be properly managed. We are presenting three standard spon- sorship and advertising options in this proposal - but are very adept at creating custom components to help you leverage your investment. §  Well-managed and experience = Low risk  Targeted key market  Flexible and can be leveraged  Can involve key stakeholders (employees, clients, distributors)  High value, good investment ADverTisiNg & sPoNsorsHiP CoNTACTs Dean Nelson Chris Conroy Clear Creek Media LLC Bigfoot Productions deannelson@clearcreekmedia.com cconroy@yeticycles.com 303.279.8234 303.278.6909
  4. 4. ParticiPants & sPectators MSC ON-SITE EVENT DEMOGRAPHICS GENDER at a glance . . . . Female Female Male 8,000+ entries in 2009. Male 75 % are male. 0% 10% 20% 30% 40% 50% 60% 70% 80% HOUSEHOLD INCOME the average bike in the Msc costs $4100. $0 - $25,000 $25,001 - $50,000 the average lodging cost at our race venues is $50,001 - $75,000 $200 per night. $75,001 - $100,000 $100,001 - $125,000 $125,001+ 47% have an average household income over $75,000. ADDITIONAL PEOPLE IN PARTY they drive 4WD and aWD vehicles, but show early adopter signs of more economical and fuel- 1 to 2 efficient cars and trucks. 3 to 4 5 to 6 6+ Junior participation represented 15% of total participation in 2009. AGE Juniors prefer racing gravity over endurance 3:1. Under 18 18-25 100% of them race in the best mountain bike 26-35 series in the United states as evidenced by a 35-45 45+ staggering amount of coverage in the vertical print and online media. PURPOSE FOR COMING They are loyal to the brands that support their sport Racer Spectator Parent Source: Actual 2009 MSC Series data and 2009 Participant Surveys Other Racing Discipline Short Track Discipline Cross Country Downhill Gated Super D 0% 10% 20% 30% 40% 50% Shawn Spomer Percentage of Total Starts
  5. 5. MSC MEDIA VIEWER DEMOGRAPHICS nBc UniVersaL sPorts attracts sPorts LiFestyLers Yeti Cycles What is a “Sports Lifestyler”? ♦ Core and casual athletes with a deep love for sports that is part of their identity ♦ Participate in sports activities several times a week and consume sports media daily ♦ Deeply connected to their sports, influencers and brand loyal ♦ Professionals, Enthusiasts and Super Fans this year 38 million americans will bike. That’s more than 2x the number of Americans who will ski or snowboard. Source – SGMA 2008 Sports & Fitness Participation Report freedigitalphotos.net Viewers of nBc Universal sports have a passion for favorite sports and athletes. • 89% are extremely passionate about favorite sports • 90% follow favorite athletes closely Source – NBC Universal Sports Site Intercept research 2009 compared to Versus, Discovery, speed, esPn2, esPn classic and Fuse television networks: • NBC Universal sports has the top viewership duration among 18-49 with over $100K of household income. • NBC Universal sports has higher viewership frequency at 25.4 times per month- more than all the other networks listed combined! Source – Nielsen Media Research, Local NPOWER, New York DMA, July 2009 Yeti Cycles nBc Universal sports also has higher frequency of viewership compared to other established cable channels, with 25.4 times per month. That’s more than versus, Discovery, speed, esPN2, esPN Classic and Fuse combined. Source –Nielsen Media Research, Local NPOWER, New York DMA, July 2009 sports Lifestylers favor brands surrounding their interests. • 67% are more likely to think higher of brands that sponsor favorite sport- ing events. • 64% are more likely to purchase brands that sponsor favorite sporting events. Source –NBC Universal Sports Site Intercept research 2009 Yeti Cycles nBc Universal sports programming can be acessed “anywhere, anytime”. • on-Air— Universal sports is currently available in 62 million households, and is projected to have 73 million households by February 2010. • internet— www.universalsports.com attracts 5.2 million unique viewers per month, representing over 50 million page views. • Mobile— subscribers can sign up for Text & video alerts and participate in mobile sweepstakes. Source –NBC Universal Sports Site Intercept research 2009 top national brands and leading sports endemic brands have already partnered with Universal sports on successful integrated, multi-platform campaigns: sprint, at&t, Ge, Visa, Us navy, Kleenex, nike, Gatorade, adidas, speedo and oakley – to name a few.
  6. 6. EVENT & MEDIA VALUE a tarGeteD ProMotion to a Key aUDience the Mountain states cup series is compromised of 32 mountain bike events over nine weekends during the summer of 2010 and attracts over 8,000 participants and Better Value 120,000 spectators. The MSC takes place at the top mountain bike venues in the Rocky Mountain Region, and consists of a number of for Sponsors disciplines: Cross Country (XC), Short Track (STXC), Downhill (DH), Mountain Cross (4X), Dual Slalom (DS) and A low risk business proposition Super D (SD). Sponsoring a well-developed series rather than individual athletes The events will be featured on 10 one-hour television programs or teams provides companies with broadcast on NBC Universal Sports Television Network with insulation from bad publicity. first airing one prime-time weekends, with at least two additional airings per program. With over 70 Million households able to Direct access to core consumers received NBC Universal Sports Television Network through either with great demographics their over-the-air digital broadcast signal or via cable television or Video, dedicated and professional DBS, the series is expected to deliver over 12 million advertising PR, consistent dialogue via direct spot impressions and over 24 million brand impressions to Gold- email with our customers included level sponsors. with partnerships. On-site exposure The series is expected to deliver over 12 Free tech space for our partners with electricity provided at cost. million advertising spot impressions and over 24 million brand impressions. Premier locations MSC is centrally located in the Rocky mountains and attracts not only The programs will also be available on Video-On-Demand through regional participants, but national the www.universalsports.com website - one of the top ten sports- and International participants who related websites in the world - with over 5.2 million unique viewers make it a “destination event” often every month and over 50 million page views. We expect that the building their vacations and Internet media property will generate at least 8 million additional business travel around it. In fact, the brand impressions for Gold-level sponsors over the course of the 2009 Series attracted participants four months the programming will be available for viewing. from 22 states and 4 countries. Based on the cost of a Gold sponsorship package, the cost per TV coverage Impression is estimated to be less than $5.00 per thousand - a very Investment in series underwrites effective media buy - especially when you consider that over 25% multiple broadcast dates and video capture in multiple mediums with of the impressions are ‘lean forward’ impressions via the Internet or unconditional pass-through rights. through on-site activities!
  7. 7. www.universalsports.com gets 50 million page views per month The series has grown over its 20-year history, can be to a company looking for a quality to a point where it is considered the premiere connection to the “Sports Lifestyler” mountain bike series in the nation. Under demographic. the management of Bigfoot Productions (an owned subsidiary of Yeti Cycles), the series has We are presenting three packages— with cat- attracted virtually every company endemic in egory exclusivity provided at no additional cost the cycling industry to become a sponsor. for the first five gold-level sponsors, provided their commitment is made prior to Each event in the series provides points for the end of 2009. national ranking, so athletes and spectators come from all across the country to compete We have provided exhaustive information and watch the best in the world. about the demographics associated with the property in the first two sections, and in this In fact, last year an event even section, we identify the specific components of attracted Lance Armstrong – who each package, based on four categories: was looking for a challenge a 1. On-site business related benefits couple of weeks after his podium 2. Off-site business-related benefits placement at the Tour de France. 3. On-site brand related benefits Clear Creek Media has been working for two 4. Off-site brand related benefits years to prepare for television coverage, and we VAST Action have engaged an experienced team who know how to balance the needs of athletes and spectators with those of camera crews and sponsors— to ensure that everyone gets value for their area of interest. We have shown in the first two sections how valuable the viewers of Universal Sports Television Network and participants and spectators of the Mountain States Cup Series
  8. 8. ON-SITE EVENT SPONSORSHIP DETAILS $50K LeVeL eVent sPonsorsHiP plus product GoLD • Banners 24- 3’x5’ coroplast, included in cost • expo space 20’x30’ included, power requires advanced notice and is provided at cost • start/Finish tower primary large sized logo placement • Pa announcements 16 per event day • Msc series championship Jersey 2 large logo placements • colorado state championship Jersey 2 large logo placements • Msc Merchandise and event tees exclusive logo presence at an additional $500 per event • Website primary logo placement / banner, links • Video primary logo placement, product placement and athlete endorsement • email newsletter prominently featured in all MSC press releases • race number plates primary logo placement • ViP credentials unlimited • signage at ancilliary events Angel Fire Burner, Fall Tilt in Telluride, Bear Creek Beti Bike Bash • opportunity to provide inserts Athlete schwag bags, registration packets, direct mail $25K LeVeL eVent sPonsorsHiP plus product siLVer • Banners 12- 3’x5’ coroplast, included in cost • expo space 10’x20’ included, power requires advanced notice and is provided at cost • start/Finish tower primary medium sized logo placement • Pa announcements 12 per event day • Msc series championship Jersey 2 medium logo placements • colorado state championship Jersey 2 medium logo placements • Msc Merchandise and event tees exclusive logo presence at an additional $1,000 per event • Website primary logo placement, links • Video logo placement, product placement and athlete endorsement • email newsletter featured in all MSC press releases • ViP credentials 2 per event • opportunity to provide inserts Athlete schwag bags, registration packets, direct mail $10K plus product BronZe LeVeL eVent sPonsorsHiP • Banners 6- 3’x5’ coroplast, included in cost • expo space 10’x10’ included, power requires advanced notice and is provided at cost • start/Finish tower primary small sized logo placement • Pa announcements 6 per event day • Msc series championship Jersey 2 small logo placements • colorado state championship Jersey 2 small logo placements • Website primary logo placement, links • email newsletter featured in all MSC press releases • ViP credentials 1 per event • opportunity to provide inserts Athlete schwag bags, registration packets, direct mail A contract is required with Bigfoot Productions for the on-site event sponsorship component, but that category exclusivity is only available to sponsors who make a Gold level commitment for both on-site sponsorship and media advertising components.
  9. 9. MEDIA PROPERTY ADVERTISING DETAILS $120K LeVeL MeDia sPonsorsHiP plus product GoLD • category exclusivity for the first 5 category sponsors (additional Terms and Conditions apply see page 12) • sixty 30-second advertising spots two 30-second ads per program times 10 programs on NBC Universal Sports Television Network, aired at least three times, including at least once during weekend prime-time • sixty 5-second billboards with voice-over two 5-second billboards at opening/closing times 10 programs on NBC Universal Sports Television Network, aired at least three times, including at least once during weekend prime-time • thirty sponsor name mentions at least one per program times 10 programs on NBC Universal Sports Television Network, aired at least three times, including at least once during weekend prime-time • 10 opening billboards on the Video-on-Demand programming on www.universalsports.com one per program times 10 programs, available for up to four months. It is likely that programming will be segmented into 15-minute segments for a total of 40 programs, in which case you would receive 40 billboards - one at the beginning of each segment • Banner and/or listing with logo and link to advertiser website from www.universalsports.com for a period of 4 months - which has over 50 million page views per month What does category exclusivity get my company or brand? The benefit of this type of sponsorship is a high level of exposure without the competition and clutter of traditional advertising. By establishing a link with our events, a company shares in the credibility of the event itself while delivering its message to a consumer who is apt to be relaxed and more receptive. $65K LeVeL MeDia sPonsorsHiP plus product siLVer • thirty 30-second advertising spots one 30-second ads per program times 10 programs on NBC Universal Sports Television Network, aired at least three times, including at least once during weekend prime-time) • thirty 5-second billboards with voice-over one 5-second billboards at opening or closing times 10 programs on NBC Universal Sports Television Network, aired at least three times, including at least once during weekend prime-time • thirty sponsor name mentions at least one per program times 10 programs on NBC Universal Sports Television Network, aired at least three times, including at least once during weekend prime-time • 10 opening billboards on the Video-on-Demand programming on www.universalsports.com one per program times 10 programs, available for up to four months. It is likely that programming will be segmented into 15-minute segments for a total of 40 programs, in which case you would receive 40 billboards - one at the geginning of each segment • Listing with logo and link to advertiser website from www.universalsports.com for a period of 4 months which has over 50 million page views per month $35K plus product BronZe LeVeL MeDia sPonsorsHiP • thirty 30-second advertising spots one 30-second ads per program times 10 programs on NBC Universal Sports Television Network, aired at least three times, including at least once during weekend prime-time • thirty sponsor name mentions at least one per program times 10 programs on NBC Universal Sports Television Network, aired at least three times, including at least once during weekend prime-tim • Listing with logo and link to advertiser website from www.universalsports.com for a period of 4 months which has over 50 million page views per month
  10. 10. 2010 aPPenDix 1 Proposed Race Schedule april 23-25 august 6-8 MSC #1, Rabbit Valley Rally MSC #6, Blast the Mass Fruita, CO Snowmass Village, CO TT, XC XC, DH, DH, SD May 14-16 august 20-22 MSC#2, Chalk Creek Stampede MSC #7, Full Tilt in Telluride Nathrop, CO Telluride, CO XC, 4X, STXC, DS 4X, XC, DH, SD June 4-6 september 3-6 MSC #3, Chile Challenge MSC #8, Winter Park Finale Angel Fire, NM Winter Park, CO XC, 4X, DH, SD XC, DS, DH, SD June 25-27 september 10-12 MSC #4, Wildflower Rush MSC #9 Fall Classic Stage Race Crested Butte, CO Breckenridge, CO XC, 4X DH, SD XC, TT, STXC July 9-11 MSC #5, Keystone Climax Keystone, CO XC, DS, DH, SD
  11. 11. aPPenDix 2 GLOSSARY: MTB RACING TERMS MoUntain BiKe racinG (MtB)- the first mountain bike competitions were held in California, USA in the early eighties. Since then the discipline has grown very fast in all aspects. The first World Championships to be officially recognized by the UCI dates back to 1990. A World Cup was setup the following year and has continued into the present. Union cycListe internationaLe (Uci)- a cycling association that oversees competitive cycling events internationally. It is the world governing body for jurisdiction in the sport of cycling. The UCI is based in Aigle, Switzerland, and man- ages the classification of races and the points ranking system in various cycling disciplines. It also oversees the World Championships, in which different countries compete instead of trade teams. nationaL oFF-roaD BicycLe association (norBa)- the national governing body for the sport of mountain biking in the United States. NORBA creates the rules for the sport of mountain bike racing (USA Cycling Mountain Bike) as well as the rules for the USA Cycling Mountain Bike National Championship. USA Cycling Mountain Bike is a division of USA Cycling, which is itself a part of Union Cycliste Internationale or UCI. Usa cycLinG (Usac)- the national governing body for bicycle racing in the United States. USAC is based in Colorado Springs, CO and covers the disciplines of road, track, mountain bike, cyclo-cross, BMX and collegiate racing. USAC is associated with the UCI, which governs international cycling. The organization is also a member of the continental body Confederacion Panamericana de Ciclismo (COPACI). USA Cycling is a membership organization of which over 50,000 members belonged to in 2008. cross coUntry (xc)- Cross country is the most common discipline of mountain biking. Cross-country racing emphasizes endurance over technical prowess, and races vary from 30 minutes to 24 hours in length. Races can either be point-to-point or lap- based. Races traditionally feature a mass or interval start where riders are released in several large groups divided by age / ability. There are narrow tracks, paths through forests, rocky paths and through streams and small rivers. sHort tracK (stxc)- a derivative of cross country racing, this event consist of many very short laps so as to be spectator friendly. Usually 25 to 60 minutes in duration. DoWnHiLL (DH)- a gravity-assisted time trial mountain biking event. Riders race against the clock, usually starting at intervals of 30 seconds (seeded from slowest to fastest), on courses which typically take two to five minutes to complete. The pacing is determined by the fastest times to complete the courses; races are often won by margin of under a second. Downhill races are held on steep, down- hill terrain with no extended climbing sections, resulting in high speed descents with extended air time off jumps and other obstacles. MoUntain cross (4x)- Mountain cross is a relatively new style of mountain bike racing where four bikers race downhill on a prepared, BMX-like track, simply trying to get down first. These bikes are generally full-suspension with 3-4 inches of travel, or hardtails, and have typically quite strong frames. DUaL sLaLoM (Ds)- a gravity event which consists of two racers racing two almost identical tracks next to each other down a slope. The courses are usually short; one run lasting about 30 seconds. It is filled with tabletop jumps, double and bermed turns. Both riders’ times are taken and then they switch tracks for another round, whereafter the combined times are counted and the slowest rider is eliminated. The winner moves on to the next round until they have two riders left racing in the final. sUPer-D (sD)- is a downhill, cross country race in its own category, that is a timed event and can have either individual start times, or a mass, Le Mans style start where everyone goes at the same time. Courses lack the technical danger-packed elements of downhill racing, and often have significant pedaling. Usually six to nine minutes in length. MoUnt cross DoWn ai c Hi oU LL n cr n tr o ss y VAST Action VAST Action VAST Action
  12. 12. COMPANY BACKGROUND aPPenDix 3 Bigfoot Productions (BFP), owned by yeti cycles, is the promoter of the Mountain states cup regional championship series (Msc), one of the premier mountain bike (xc, stxc, DH, Mx, Ds, sD) race series in the United states. BFP was started in 2006 by industry veterans and yeti cycles principals chris conroy and steve Hoogendoorn, who acquired the assets of Msc from cycle cyndicate. Bigfoot Productions has created strategic partnerships with destination venues all across the Rocky Mountain Region including Keystone, Breckenridge, Aspen/Snowmass, Taos/Angel Fire, Crested Butte, Telluride, Buena Vista/Salida, Fruita/Grand Junction, SolVista Basin/Granby Ranch and more to put on MSC events. The MSC infrastructure allows Bigfoot to invest in and create events, not just races. We see more “tribe” type events – large gatherings of like-minded MTB’ers for get-togethers that step outside the formal boundaries of competition. We plan on embracing and celebrating riders, not just racers. Tapping into this market will provide Bigfoot with the diversification necessary to serve more of mountain biking’s interests than those involving a number plate and a start line. Bigfoot Productions is also the promoter of USA Cycling Mountain Bike National Championships for 2009 and 2010, and other unique events such as the Angel Fire Burner and Fall Tilt in Tellruide— both 12 hour downhill races, and the Bear Creek Beti Bike Bash— the first women’s only mountain bike race coming June 2010. WHy: • To ensure the long-term viability of racing in the Rocky Mountain Region. • Continue to develop an atmosphere that pushes pros and develops juniors as potential World Cup competitors. • Provide larger purses for pros and groom athletes for international competition. • Continue to build and maintain the best courses in North America. • Nurture dialogue and involvement with our customers. • To enhance the culture of Colorado cycling for the Rocky Mountain athlete. WHo is BeHinD tHe scenes: KeitH Darner has twenty-three years of experience in the mountain bike industry- mainly as a racer, both XC and gravity, coach, trainer, and now as a race director. In the early 90’s he coached the Fort Lewis College Mountain Bike Team to three national collegiate championships. Keith founded the RPM Yeti Developmental race program in 1997 and has continued to produce some of Colorado’s premier gravity racers. Keith runs the show at all MSC events. He does everything from course designing; managing the operations crew; tech/expo organization, to sponsor, venue and racer relations. saraH raWLey is the central hub for all internal logistics for the Mountain States Cup. She manages the website; communication with media, sponsors, venues and racers; oversees the design and production of merchandise, awards and advertisements; takes care of the permitting of events through USA Cycling; manages online registration; designs and writes promotional materials; and races at each and every MSC event. cHris conroy is the president of Yeti and has a very active role in the Mountain States Cup. He sets the strategy and has a single- minded goal to make the Mountain States Cup the strongest series in the national. A critical element to creating a successful race series is establishing long-term relationships with key sponsors to ensure the series has the financial strength and industry support to carry its weight. Chris handles sponsorship negotiations for on-site event sponsorship details. Dean neLson Dean Nelson is the President and CEO of Clear Creek Media LLC. which is the TV rights holder of the Mountain States Cup. Dean has been involved in the media production, financing, sponsorship, client hosting and program distribution of sporting events such as the Tour de France, Calgary Olympics, Teleglobe Canada Triathlon Series, the 2nd World Mountain Bike Championships and Grand Prix Cyclist des Ameriques as well as a number of regional sporting events and festivals. Clear Creek Media is the producer of all MSC television programs, is responsible for distribution for Television and Internet with NBC Universal Sports, and negotiates all media property contracts with Sponsor/Advertisers. Keith Darner- the man in the big hat Dean Nelson- being interviewed for the Sarah Rawley- racing at MSC Chris Conroy- riding epic terrain in 1991 Tour de France Eldora Escape cross country Crested Butte, Colorado
  13. 13. aPPenDix 4 TESTIMONIALS FROM SPONSORS “As a long time supporter of the MSC series as both a racer and a sponsor I can honestly say that I feel the MSC series is the most professional series in the country. It offers the best venues, courses, promoters/organizers and the highest level of competition you can find at the national level. I feel that other race promoters could learn a lot by using the MSC as an example of a successful race series.” - Justin Frey, Fox Racing Shox, Race Support Technician “The Mountain States Cup Race Series is one of the most competitive race series in the United States. With the wide variety of courses and the top level talent it attracts, it has become the best venue for Colorado racers to test their skills.” - Mike Swafford, Maverick American Bicycle Company, Director of Operations “MSC has been great to work with! You are all a very laid back crew with a great brand! Thanks for letting mix1 be a part of the family, and we are looking forward to participating in another one of your great events!” - Amy Daignault, Field Marketing Manager, mix1 “Mountain States Cup succeeds by taking a customer first approach and consistently nailing the most important aspects of racing from that perspective, delivering high event quality, service and respect for the competitors, sponsors and venues.” - Jasen Thorpe, Editor in Chief/Brand Director Mountain Bike Magazine, National Cycling Manager, Bicycling Magazines “In our first year of participation with the MSC we are very pleased with the partnership and what it has done to help promote our brand. The MSC series is well recognized throughout the country as a premier series and is well organized. We look forward to the upcoming season and working with MSC.” - Henry Horrocks, North Americna OE Sales Manager, Schwalbe North America
  14. 14. GENERAL CONTACT TERMS & CONDITIONS aPPenDix 5 We have had a lot of experience with event management, and our first goal in a sponsor partnership is to mitigate any surprises. We know that events have a high payback when they are properly managed, and are a sinkhole for resources when they are not. In an effort to be entirely predictable so you are making decisions with a full understanding of what is required from each party, we’ve indicated the main terms and conditions that will be in our contract. aGreeMent A contract for services identified in this proposal as “On-Site Sponsorship” will be required between Customer and Bigfoot Productions. A contract for services identified in this proposal as “Media Properties” will be required between Customer and Clear Creek Media LLC. BigFoot Productions and Clear Creek Media LLC will be identified as “Supplier” in the agreements. cateGory excLUsiVity Up to five categories of exclusivity will exist for the 2010 MSC. These categories have not been defined, and are subject to negotiations between Customer and Supplier. All categories for “Media Properties” exclusivity (advertising spots, billboards, on-camera and voice-over mentions and graphic billboards on TV, VOD and Internet) are currently available. “On-site Sponsorship” category exclusivity (expo space, event signage, etc) may not be available since there are a number of long-term sponsors currently in multi-year contracts with Bigfoot Productions. PayMent terMs a) For agreements that include category exclusivity, 50 percent of the total contract must be paid within 10 days of signing to guarantee category exclusivity. An additional 10 percent is due on or before March 1, 2010, an additional payment of 20 percent is due July 1st, 2010, and a final payment, equal to the 20 percent balance is due on September 15, 2010. b) For agreements that do not include category exclusivity, payment equivalent to 10 percent of the total client commitment for Gold, Silver and Bronze packages is due within 10 days of signing of a contract. An additional 50 percent is due on or before March 1, 2010, an additional payment of 20 percent is due July 1st, 2010, and a final payment, equal to the 20 percent balance is due on September 15, 2010. Use oF LoGos anD BranDs Neither party shall use the other party’s names, marks or logos in any advertising, promotional efforts or any publicity of any kind without the prior approval of the other party. Such approvals will not be reasonably withheld or delayed. Customer and Supplier may state, without prior approval, in their promotional and advertising material that certain services are provided to Customer by Supplier. aDVertisinG restrictions Customer’s advertising spots must conform to commercial insertion standards and practices. a) No false or unwarranted claims for any product or service. b) No ambiguous statements or representations that may be misleading to the audience. c) No infringement of another advertiser’s rights through plagiarism or unfair imitation of either program idea or copy, or any other unfair competition. d) No disparagement of competitors or competitive products, no testimonials that cannot be authenticated. e) No material constituting or relating to a lottery, no material constituting or relating to a contest of any kind in which the public is unfairly treated, no advertising for any gambling, wagering or game of chance (Advertising from the official state lottery of a state in which the advertising will air is acceptable, so long as such advertising is not for any game of chance in which in any way is dependent on the outcome of any sporting event). f) No appeal for funds (other than for legitimate charities). g) No commercial or material that is in whole or part defamatory, obscene, profane, vulgar, repulsive or offensive, either in theme or treatment. h) No advertising or promotion of any habit-forming drugs, drugs or products relating to sexual performance or for sexual dysfunction, male or female enhancement products, or condoms or other prophylactics or birth-control drugs or devices. i) No advertising or promotion of tobacco products, handguns, or handgun ammunition or gentleman’s clubs (or other similar establishments).
  15. 15. j) No commercial or material that promotes or markets adult telephone services, gambling touting services or other services that relate to the occult, sexual activities, or adults-only services, or that are directed toward children. k) No advertising or materials that may be injurious or prejudicial to the interests of the public, enterprises or honest advertising and reputable business in general. l) No advertising or message that disparages any other affiliate or distributor of the Network or any other multi-channel video programming distributor of distribution systems (either generically as satellite or cable technology or specifically as to any such other distributor’s brand). reneWaLs anD First riGHt oF reFUsaLs All sponsors will have an automatic right of renewal for subsequent years provided that the Customer exercises that right in writing by October 1, 2010. Payment for any renewals will be subject to the terms and conditions covered under a separate contract, and none of the terms and conditions of the agreement for the 2010 MSC events and media will automatically transfer to subsequent years. UncontroLLaBLe circUMstances Neither party will be in default or otherwise liable for any delay or failure in its performance under the agreement where such delay or failure arises by reason of any act of God, acts of the common enemy, other elements, storms, earthquakes, floods, fires, epidemics, quarantine restrictions, riots, strikes, sabotage, government authority, failure or delay in transportation, willful or criminal misconduct of third parties or other causes beyond its control. terMination There will be no provision in the Agreement for termination for convenience. The parties will acknowledge that the Agreement will represent a commitment of Supplier resources that may not be refundable or resalable given the lead-time required by prospective Customers to adequately leverage event advertising and sponsorship. inDeMniFication anD LiaBiLity Suppliers will not be liable to Customer, and Customer will not be liable to Suppliers for any amounts representing their or their customers respective loss of profits, loss of business, or indirect, special exemplary, consequential or punitive damages arising from the performance or nonperformance of the agreement or any acts or omissions associated therewith or related to services whether the basis of the liability is breach of contract, tort (including negligence and strict liability), statutes or any other legal theory. coMPLiance WitH aPPLicaBLe LaWs & tHirD Party aUtHoriZations Bigfoot Productions and Clear Creek Media will prepare, apply for and maintain all governmental permits licenses and authorizations necessary to perform the Services. GoVerninG LaW The Agreement will be construed and interpreted according to the laws of the State of Colorado. entire aGreeMent The Agreement will constitute the entire agreement between the parties with respect to the Services to be provided. The Agreement will supersede all prior oral or written communications or agreements of the parties with respect to the Services.
  16. 16. ADverTisiNg & sPoNsorsHiP CoNTACTs Dean Nelson Chris Conroy Clear Creek Media LLC Bigfoot Productions deannelson@clearcreekmedia.com cconroy@yeticycles.com 303.279.8234 303.278.6909

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