1
Rockingham Promoter Agreement
July 3, 2000
Final Contract
CART, INC.
OFFICIAL ORGANIZER/PROMOTER AGREEMENT
ROCKINGHAM, ENGLAND
FINAL CONTRACT
July 3, 2000
1
2
Rockingham Promoter Agreement
July 3, 2000
Final Contract
CART, INC.
OFFICIAL ORGANIZER/PROMOTER AGREEMENT
The undersigned hereby applies for the right to conduct a FedEx Championship
Series (herein sometimes referred to as "the Series") race Competition
sanctioned or co-sanctioned by CART, Inc.("CART"), upon the following terms and
conditions. It is understood that this is an application only until accepted and
approved by CART in writing and that this Competition shall not be advertised or
communicated to the public, press or any other media or business arrangement as
having been approved by CART until this application has been so approved and
until an official sanction has been granted by CART.
1. Track: Rockingham Motor Speedway
Location: Rockingham, England
Organizer/Promoter: Rockingham
Address: ▇.▇. ▇▇▇ ▇▇▇
▇▇▇▇▇ ▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇
Telephone: 01536 500 500
Facsimile: 01536 500 555
E-mail Address:
Race Distance: up to 500K
Track Length and Type: Oval
Postponed Date: Next Day (Sunday)
DEFINITIONS:
2. A. The term "Competition" as used herein means the annual Champ
Car race(s) designated in this Agreement, as well as all time
trials, practice runs and rain or postponed dates related
thereto.
B. The term "Event" as used herein means the Competition(s) as
well as any other race(s), race-related activities or any
other activities associated with the Competition(s), as
approved by CART hereunder.
C. The terms "Dollars" and "$" refer to the lawful currency of
the United States of America.
D. References in this Agreement to "FedEx" shall be to Federal
Express Corporation, and/or (where applicable) any successor
or additional Series title or co-title sponsor.
2
3
Rockingham Promoter Agreement
July 3, 2000
Final Contract
3. A. Subject to compliance with all the terms and conditions set
forth in this Agreement, Organizer/Promoter shall have the
exclusive rights to organize, promote and conduct a FedEx
Championship Series race Competition in United Kingdom and
Ireland in the following year(s): 2001-2006.
B. Organizer/Promoter and CART will mutually agree as to the date
for each race hereunder. The parties agree that they will
exercise reasonable efforts to schedule the races during the
same weekend each year and acknowledge the desirability of
such date equity. If, however, due to television and
scheduling conflicts, in CART's sole discretion it becomes
necessary to schedule a race for a different weekend, CART
will exercise reasonable efforts to notify Organizer/Promoter
six (6) months before the date of the rescheduled race.
C. Organizer/Promoter agrees not to organize, promote, conduct,
authorize or permit the staging of any other major motor
racing event(s) at the track(s) designated hereinabove,
without the written approval of CART, within Fourteen (14)
days preceding or Seven (7) days following any Competition.
D. The parties shall have an exclusive reciprocal right of first
negotiation for the extension of this Agreement beyond the
Events covered hereunder, through a six (6) month reasonable
period of good faith negotiation, beginning on June 1, 2004;
provided, however, that should the parties not have agreed to
an extension hereunder by the end of such six (6) month
period, CART shall have the right to negotiate for a
substitute agreement and the Organizer/Promoter shall have the
right of first refusal to meet the terms of any proposed
substitute agreement negotiated by CART through a period which
terminates twelve (12) months prior to the last Event under
this Agreement. If Organizer/Promoter exercises its right of
first refusal under this paragraph 3.D, then the terms of the
proposed substitute agreement shall be the terms of the
extension agreement hereunder.
4. The total Organization and Rights Fee payable for the 2001 Competition
shall be Four Million ($4,000,000.00) Dollars and shall be paid to CART
as follows:
A. Fifteen (15%) percent, or Six Hundred Thousand ($600,000.00)
Dollars by January 1, 2001.
B. Thirty-five (35%) percent, or One Million, Four Hundred
Thousand ($1,400,000.00) Dollars not later than three (3)
months prior to the date of the race.
3
4
Rockingham Promoter Agreement
July 3, 2000
Final Contract
C. The balance due of Two Million ($2,000,000.00) Dollars not
later than thirty (30) days prior to the date of the race.
5. The total Organization and Rights Fee payable for the 2002 Competition
shall be Four Million Two Hundred Thousand ($4,200,000.00) Dollars and
shall be paid to CART as follows:
A. Fifteen (15%) percent, or Six Hundred Thirty Thousand
($630,000.00) Dollars by January 1, 2002.
B. Thirty-five (35%) percent, or One Million Four Hundred Seventy
Thousand ($1,470,000.00) Dollars not later than three (3)
months prior to the date of the race.
C. The balance due of Two Million One Hundred Thousand
($2,100,000.00) Dollars not later than thirty (30) days prior
to the date of the race.
6. The total Organization and Rights Fee payable for the 2003 Competition
shall be Four Million Four Hundred Ten Thousand ($4,410,000.00) Dollars
and shall be paid to CART as follows:
A. Fifteen (15%) percent, or Six Hundred Sixty-One Thousand Five
Hundred ($661,500.00) Dollars by January 1, 2003.
B. Thirty-five (35%) percent, or One Million Five Hundred
Forty-Three Thousand Five Hundred ($1,543,500.00) Dollars not
later than three (3) months prior to the date of the race.
C. The balance due of Two Million Two Hundred Five Thousand
($2,205,000.00) Dollars not later than thirty (30) days prior
to the date of the race.
7. The total Organization and Rights Fee payable for the 2004 Competition
shall be Four Million Six Hundred Thirty Thousand Five Hundred
($4,630,500.00) Dollars and shall be paid to CART as follows:
A. Fifteen (15%) percent, or Six Hundred Ninety-Four Thousand
Five Hundred Seventy-Five ($694,575.00) Dollars by January 1,
2004.
B. Thirty-five (35%) percent, or One Million Six Hundred Twenty
Thousand Six Hundred Seventy-Five ($1,620,675.00) Dollars not
later than three (3) months prior to the date of the race.
4
5
Rockingham Promoter Agreement
July 3, 2000
Final Contract
C. The balance due of Two Million Three Hundred Fifteen Thousand
Two Hundred Fifty ($2,315,250.00) Dollars not later than
thirty (30) days prior to the date of the race.
8. The total Organization and Rights Fee payable for the 2005 Competition
shall be Four Million Eight Hundred Sixty-Two Thousand Twenty-Five
($4,862,025.00) Dollars and shall be paid to CART as follows:
A. Fifteen (15%) percent, or Seven Hundred Twenty-Nine Thousand
Three Hundred Three Dollars and Seventy-Five ($729,303.75)
Cents by January 1, 2005.
B. Thirty-five (35%) percent, or One Million Seven Hundred One
Thousand Seven Hundred Eight Dollars and Seventy-Five
($1,701,708.75) Cents not later than three (3) months prior to
the date of the race.
C. The balance due of Two Million Four Hundred Thirty-One
Thousand Twelve Dollars and Fifty ($2,431,012.50) Cents not
later than thirty (30) days prior to the date of the race.
9. The total Organization and Rights Fee payable for the 2006 Competition
shall be Five Million Three Hundred Forty-Eight Thousand Two Hundred
Twenty-Seven ($5,348,227.00) Dollars and shall be paid to CART as
follows:
A. Fifteen (15%) percent, or Eight Hundred Two Thousand Two
Hundred Thirty-Four Dollars and Five ($802,234.05) Cents by
January 1, 2006.
B. Thirty-five (35%) percent, or One Million Eight Hundred
Seventy-One Thousand Eight Hundred Seventy-Nine Dollars and
Forty-Five ($1,871,879.45) Cents not later than three (3)
months prior to the date of the race.
C. The balance due of Two Million Six Hundred Seventy-Four
Thousand One Hundred Thirteen Dollars and Fifty
($2,674,113.50) Cents not later than thirty (30) days prior to
the date of the race.
10. A. Organizer/Promoter expressly understands and agrees that said
Organization and Rights Fees are intended to be net and are
non-refundable except as expressly provided in this Agreement.
If said Organization and Rights Fees are not paid to CART in
the manner and by the time provided above, CART shall have the
option to declare this Agreement terminated after a fourteen
(14) day notice of
5
6
Rockingham Promoter Agreement
July 3, 2000
Final Contract
default/opportunity to cure, in which circumstance CART will
be relieved from any further liability or responsibility
hereunder, and in addition, Organizer/Promoter shall forthwith
pay to CART and CART shall be entitled to enforce collection
of the total amount required under this Agreement for the
Competition for which such fees are not paid and for the
following year's Competition as liquidated damages, together
with all reasonable costs incurred by CART in connection
therewith, including reasonable attorney fees, and interest at
the rate of twelve (12%) percent per annum. Upon receipt in
full of the amounts specified in this Paragraph, CART
acknowledges that the receipt of said sums shall be CART's
sole and exclusive remedy in the event CART terminates this
Agreement as provided in this Paragraph. Organizer/Promoter
shall be responsible for payment of any taxes assessed by any
taxing authority on the Organization and Rights Fees and/or
any withholding requirements based on the distribution of same
to the teams. Any such tax liability shall be in addition to
the Organization and Rights Fees payable hereunder. In no
event will Organizer/Promoter be responsible for any U.S.
taxes imposed by any taxing authority on the income of CART.
11. Organizer/Promoter shall not be responsible for any purse distribution
whatsoever in respect to a Competition. CART must approve any and all
awards given in conjunction with a Competition and/or for the FedEx
Championship Series or any other CART sanctioned activity.
Organizer/Promoter agrees to provide driver and owner trophies in
recognition and representative of the achievements of at least the
first three (3) finishing positions in each Competition.
12. A. CART shall be responsible for providing not less than twenty
(20) entrants for each Competition. CART will make reasonable
efforts to notify Organizer/Promoter 30 days prior to an event
if there are fewer than twenty (20) entrants. If CART is
unable to provide twenty (20) entrants for any Competition,
Organizer/Promoter shall be entitled to a pro rata refund of
the Organization and Rights Fee. Alternatively,
Organizer/Promoter shall have the right to cancel such
Competition, providing that Organizer/Promoter first informs
CART in writing of such intent, and provided further that
twenty (20) entries have not been received within seven (7)
days after receipt by CART of such notice. If
Organizer/Promoter under these circumstances exercises this
cancellation right, CART will reimburse Organizer/Promoter for
the portion of the Organization and Rights Fee theretofore
paid for such Competition.
B. Either party hereto shall have the right to cancel a
Competition due to a "force majeure" which makes it impossible
to hold a Competition. "Force majeure" shall mean any event or
circumstances (whether arising from
6
7
Rockingham Promoter Agreement
July 3, 2000
Final Contract
natural causes, human or governmental agency or otherwise)
beyond the control of the parties including by way of
illustration, but not by way of limitation, civil strife, war,
flood, fire, or acts of God. If there is an unexpected
cancellation due to a "force majeure", Organizer/Promoter will
be entitled to the return of the portion of the Organization
and Rights Fee theretofore paid, except that
Organizer/Promoter agrees that CART may retain a sum
equivalent to the necessary expenses reasonably incurred by
CART and its teams in preparing for such Competition, which
expenses shall be mutually agreed by the parties provided,
however, that if the parties are unable to agree informally as
to the amount of such expenses, such dispute shall be
submitted to binding arbitration and the result of such
arbitration shall be enforceable by any court having
jurisdiction.
C. If Organizer/Promoter cancels or fails to stage a Competition
for any reason other than those mentioned within this
Paragraph, Organizer/Promoter shall forthwith pay to CART and
CART shall be entitled to enforce collection of the total
amount required under this Agreement for the Competition that
was not held and the following year's Competition as
liquidated damages, together with all costs incurred by CART
in connection therewith, including reasonable attorney fees,
and interest at the rate of twelve (12%) percent per annum.
Upon receipt in full of the amounts specified in this
Paragraph, CART acknowledges that the receipt of said sums
shall be CART's sole and exclusive remedy in the event
Organizer/Promoter cancels or fails to stage a Competition.
13. Except as expressly provided herein, Organizer/Promoter owns and shall
have exclusive control over all commercial rights to each Event
including by way of illustration, but not by way of limitation, the
right to sell and receive all the proceeds from Event sponsorships,
signage, admission tickets, programs, novelties, concessions (including
food and beverage), catering (including food and beverage), hospitality
facilities, hotel rooms, expositions, displays, parking spaces,
banquets and licenses to parades.
14. Organizer/Promoter shall assume and perform all organizational and
promotional activities for each Event except as otherwise provided
herein, including but not limited to business organization, promotional
activity, management, marketing, general affairs, selling tickets,
track maintenance and accommodations of the press, and further
understands and agrees that CART disclaims any warranty expressed or
implied, as to the potential success of any Event organized hereunder,
except as otherwise provided herein.
7
8
Rockingham Promoter Agreement
July 3, 2000
Final Contract
15. Organizer/Promoter shall organize and promote the races hereunder as
major motor racing events. Organizer/Promoter shall have the right to
on-site track entitlement, and revenues therefrom. On-site entitlement
is to designate the title/name of the Champ Car race. subject to CART
approval which shall not be unreasonably withheld. Such title
sponsorships must not conflict with CART Series sponsors (presently
FedEx) or a co-Series sponsor. As of the execution of this agreement,
CART does not have a co-Series sponsor. In the event CART obtains a
co-Series sponsor which is in conflict with entitlement sponsor of
Rockingham Motor Speedway, both parties will discuss in good faith how
to resolve such conflict. All media releases, public announcements and
public disclosures by either party or its employees or agents relating
to this Agreement, including but not limited to promotional or
marketing material, but not including any announcement intended solely
for internal distribution at either party or any disclosure required by
legal, accounting or regulatory requirements beyond the reasonable
control of the disclosing party, shall be coordinated with and approved
by the other in writing prior to the release thereof.
16. A. CART hereby grants Organizer/Promoter the non-exclusive right
to use the names and logos of CART and the FedEx Championship
Series in its promotion of each Event during the term hereof,
in accordance with all provisions contained in this Agreement.
Any logo, design, ▇▇▇▇ or representation made, formulated, or
developed in conjunction with such Event shall be subject to
the prior written approval of CART.
B. Organizer/Promoter shall display in all advertising and
publicity material including but not limited to news releases,
posters, banners, program covers, brochures, tickets, passes,
credentials and print and television advertising relating to
each Event the phrase: "FedEx Championship Series" and the
Series logo (as approved and supplied by CART), such approval
not to be unreasonably withheld. CART reserves the right to
change such phrase and logo upon 120 days notice. In the event
CART changes the phrase and logo without such notice, CART
shall reimburse Organizer/Promoter for its actual
out-of-pocket expenses in changing the phrase and logo.
C. Organizer/Promoter shall include in its display of the Series
name and logo the symbol (R) to indicate that they are
registered marks. A sheet of camera ready art depicting these
logos shall be provided by CART. Further, in promoting and
advertising each Event, Organizer/Promoter shall promote the
Competition as a part of the FedEx Championship Series or as
otherwise designated by CART. Organizer/Promoter shall provide
such verification of compliance with the provisions contained
in this Paragraph as CART may reasonably request.
8
9
Rockingham Promoter Agreement
July 3, 2000
Final Contract
D. Organizer/Promoter shall not use the names, logos or
trademarks of CART or any Series sponsor for any purpose other
than as herein defined.
E. Upon the expiration or termination of this Agreement for any
reason, Organizer/Promoter shall immediately cease and desist
any and all use of the names, logos or trademarks of CART or
any Series sponsor or any colorable imitation, variation or
adaptation thereof.
F. CART and Organizer/Promoter shall at CART's expense promptly
take such action as may be necessary to protect the names,
logos and trademarks of CART, the Series, and the Series
sponsors against any infringement or threatened infringement
or any common law "passing off".
G. The trademarks, trade names, logos, label designs, product
identification and artwork of each party as referred to herein
(collectively "Trademarks") shall remain the property of such
party. Any and all rights in each party's Trademarks under
trademark or copyright law or other property rights shall
inure to the benefit of and be the exclusive property of such
party. Neither party shall file any application for
registration of the other's Trademarks or other intellectual
property or any marks or works similar thereto.
17. A. Organizer/Promoter agrees that each Competition shall be
organized, approved by CART and conducted in accordance with
all applicable statutes, ordinances, regulations or other
requirements of any government authority, the FIA (CART shall
determine in its sole discretion the applicability of FIA
requirements), and the CART Competition Rule Book as amended
from time to time and as the same may be modified or
supplemented by any other rules, regulations, bulletins or
releases that may be applicable to such Competition. CART
reserves the right to terminate this Agreement at any time
without further liability for failure of Organizer/Promoter to
abide by said requirements, regulations, rules, or the terms
and conditions of this Agreement, by so notifying
Organizer/Promoter in writing, upon a five (5) day notice of
default/opportunity to cure, unless the circumstances of the
default mandate a more immediate cure, or do not warrant any
cure period. CART shall notify Organizer/Promoter in writing
of any alleged default and Organizer/Promoter shall have five
(5) days after receipt of such notice to cure the default,
provided, however, if the nature of the default is such that
it cannot reasonably be cured within five (5) days,
Organizer/Promoter shall not be deemed to be in default if it
commences the cure within such five (5) day period and
thereafter completes the curative action within a reasonable
time. Organizer/Promoter acknowledges receipt of a copy of the
CART Rule Book.
9
10
Rockingham Promoter Agreement
July 3, 2000
Final Contract
B. Organizer/Promoter shall be responsible for any licensing
fees, bonds, permits, or any other enabling documents and any
associated costs required by any government agencies as
related to any or all Event matters.
18. Organizer/Promoter represents and warrants that it has or will have
sole control of the track and of the premises upon which the track is
located, including all facilities thereon, and that Organizer/Promoter
has full authority to conduct each Event thereon as provided for herein
for the defined scheduled term of each Event.
19. A. Organizer/Promoter shall provide at its expense during each
Event the track or race course which must meet or exceed the
safety requirements of CART and the FIA and all facilities in
good repair and ready for use, and Organizer/Promoter shall
permit CART or its insurance broker or other designated
representative, and the FIA to inspect the track, race course
and/or facilities before, during and after each Event. Except
as provided in Paragraph 19C, all repairs deemed necessary in
order for the track to meet CART and/or FIA safety
requirements must be made at Organizer/Promoter's expense and
the failure to make the necessary repairs may result in the
postponement or cancellation of such Event, in CART's sole
discretion. The track site, design and condition shall be
subject to review and approval by CART and the FIA.
Organizer/Promoter and CART shall consult with one another on
the layout and design of the track, including but not limited
to the pit area, safety barriers, retention systems, and other
facilities for the Competition.
B. Annually, seven (7) months prior to the next Event,
Organizer/Promoter shall submit an engineering drawing(s) of
proposed changes to the race circuit and other facilities for
CART's approval. CART will have thirty (30) days to
acknowledge approval or request changes. Such drawings are to
be treated as confidential, for use by CART as contemplated
under this Agreement, and shall not be copied, disseminated
(without Organizer/Promoter's prior consent, which shall not
be unreasonably withheld), or used for any commercial purpose,
subject to any required disclosure pursuant to Paragraph 48
below. CART shall have the right to inspect the circuit for
the purpose of verifying that the circuit is being constructed
in accordance with the drawings as submitted and approved.
Within sixty (60) days after the execution of this Agreement,
CART and Organizer/Promoter shall mutually agree on the
specific track and facility improvements to be implemented for
the first Event covered by this Agreement, and a written
summary thereof shall be prepared and
10
11
Rockingham Promoter Agreement
July 3, 2000
Final Contract
appended hereto. Thereafter, a similar process shall occur
within sixty (60) days following each Event, in respect to
improvements or adjustments to be implemented for the
following year's Event.
C. Any changes to the safety system requested by CART will be
identified and communicated by CART to Organizer/Promoter
within sixty (60) days after the conclusion of each Event
hereunder. Absent unforeseeable supervening circumstances, the
parties agree that the cost of such changes to be implemented
for any Event hereunder shall not exceed ten percent (10%) of
the Organization and Rights Fee for such Event. The foregoing
cost limitation shall be construed to exclude
Organizer/Promoter's capital improvements/investments (i.e.,
fencing, barriers, gravel traps, etc.), as well as changes to
the safety system requested by any third party (i.e., not
mandated by CART).
D. Organizer/Promoter shall be responsible for compliance with
all environmental issues associated with this Event. cart and
the cart Teams agree to comply with all reasonable
environmental policies, which policies Organizer/Promoter
shall provide to cart and the cart Teams no later than 30days
prior to each Event. Organizer/Promoter represents that it is
knowledgeable in the area and that it is currently not aware
of any environmental issues which will need to be addressed as
of the date this Agreement is executed.
20. A. Organizer/Promoter shall provide at its expense such
facilities as CART deems adequate for the use of CART
personnel and those directly associated with the Event,
including but not limited to race control facilities, garage
areas, team and supplier work areas, facilities for
participant registration, television, scoring, race car
inspection, compiling and distributing media information, a
media work area, and facilities and services as may be
reasonably required by those who supply products and/or
services for the Event. Further details of these and other
operational and facility requirements of Organizer/Promoter
are agreed to as outlined in SCHEDULE A attached hereto and
made a part hereof. Failure to comply with all applicable
requirements may result in a fine, which may be levied by CART
in its sole discretion, subject to a reasonable notice of
default/opportunity to cure. Such fine shall be reasonably
related to the magnitude of the requirement(s) with which
Organizer/Promoter failed to comply, and any fine in excess of
Fifty Thousand ($50,000.00) Dollars shall be subject to the
appeal provisions set forth in the CART Rule Book.
11
12
Rockingham Promoter Agreement
July 3, 2000
Final Contract
B. Organizer/Promoter at its reasonable expense shall provide,
install and maintain the equipment necessary to operate CART's
Timing and Scoring system, in accordance with the
specifications supplied by CART and its timing and scoring
provider. cart acknowledges that the specifications will be
consistent with cart's specifications for oval facilities
Organizer/Promoter will provide CART's timing and scoring
provider or sponsor, free of charge at the start/finish line,
on the Timing and Scoring structure and at least one other
prominent location, space to affix and display the logo and/or
officially designated status of CART's timing and scoring
provider or sponsor. Organizer/Promoter shall not sell or
secure any timekeeping and/or watch sponsorship which would be
in effect during any CART Event. In the event
Organizer/Promoter intends to sell signage to a watch company
(i.e., not in connection with a timekeeping or watch
sponsorship), Organizer/Promoter may do so provided that CART
is given prior written notice, and any such watch company
signage shall be located at least one hundred (100) meters
from any signage related to CART's timing and scoring provider
or sponsor and further provided that such company shall not be
granted official sponsor, supplier, or comparable designation
rights or status in conjunction with any Event hereunder.
21. Organizer/Promoter shall at its expense furnish all facilities,
personnel, equipment, security, and services for accommodating and
controlling the public during each Event, for whose safety and comfort
Organizer/Promoter is solely responsible and liable.
22. Organizer/Promoter shall provide at its expense all necessary personnel
as reasonably required by CART for the conduct of each Competition
hereunder(other than the CART staff and officials), and
Organizer/Promoter shall assume all the responsibilities pertaining to
workers, volunteers and subcontractors necessary to properly staff the
facility for the purposes of the Competition and the public for each
Event weekend.
23. Organizer/Promoter at its expense shall obtain and maintain insurance
for each Event and all scheduled activities with an insurance company
approved by CART. Such insurance must conform to the minimum coverages,
specifications, limits, etc., as set forth in SCHEDULE B attached
hereto and made a part hereof. If Organizer/Promoter fails to maintain
such policies with the required minimum coverage throughout the Event,
CART may cancel such Event immediately with prior notice to
Organizer/Promoter, subject to a reasonable notice of
default/opportunity to cure, or CART may, in its discretion, obtain the
required insurance from an approved insurance company, with acceptable
terms, at Organizer/ Promoter's reasonable expense.
12
13
Rockingham Promoter Agreement
July 3, 2000
Final Contract
24. Only those individuals approved by CART or Organizer/Promoter,
including but not limited to appropriate staff and officials of CART
and Organizer/Promoter, drivers and other crew members and necessary
fire, wrecker, ambulance and security crews, shall have access to or be
allowed in the paddock, garage and pit areas, the racing surface, and
other areas to which admission by the general public is normally
restricted during the Event, and Organizer/Promoter shall be solely
responsible and provide sufficient security personnel in such areas to
enforce this provision at all times during each Event. Such access must
be in compliance with the CART Rule Book and may not interfere with or
adversely affect the Competition.
25. Organizer/Promoter shall honor CART's Unified Credential System and
shall comply with the facility access provisions implemented by CART,
as set forth in SCHEDULE C attached hereto and made a part hereof, and
as the same may be amended by future discussions and concurrence
between CART and its race promoters through the promoter group.
26. A. CART shall have the exclusive right to contract out or to take
or cause to be taken by others, make, broadcast, rebroadcast,
use, reproduce, transmit, copyright, sell, license or
otherwise dispose of for any purpose whatsoever, television
pictures, sound film and tape, motion pictures, still
photographs, illustrations, graphics, electronic images and
sound of each Event, by any and all means, uses and media, now
known or hereafter developed, and the right to use the track
PA system audio on the CART web site ▇▇▇▇.▇▇▇. CART shall
retain all United States national, international and local
broadcast rights including broadcast television, cable and
radio. Organizer/Promoter will assure that the presence of
personnel and equipment for these or similar purposes shall
not be inconsistent with the rights of CART herein provided
and shall not interfere or conflict with the exercise of any
such rights by CART as herein provided.
B. CART shall have the non-exclusive right to market for any
commercial purposes the name, identity, layout, likeness,
appearance, signage and logo(s) of the track, on a composite
basis with other tracks where CART races are conducted,
provided, however, that any use of such images for commercial
product licensing purposes shall be pursuant to a separate
licensing agreement to be negotiated.
C. Organizer/Promoter shall be entitled to receive footage and
photographs for promotional purposes, subject to the then
prevailing production cost.
13
14
Rockingham Promoter Agreement
July 3, 2000
Final Contract
CART shall use its reasonable efforts to work with ESPN
International to provide Organizer/Promoter with support for
pre-event promotional purposes.
D. The parties recognize that United Kingdom television rights
related to the Events and the Series are currently subject to
third party contractual requirements. Subject to the
foregoing, the parties acknowledge Organizer/Promoter's desire
to acquire such rights, and the issue of such future United
Kingdom television rights is, therefore, deferred for future
good faith negotiations if such rights are ultimately
available.
27. Organizer/Promoter recognizes and acknowledges that CART has entered or
intends to enter into a television contract with a United States
national broadcast or United States cable network and international
networks for the coverage of each Competition hereunder.
A. Detailed operational and facility requirements of
Organizer/Promoter in respect to television and other on-site
media are identified in SCHEDULE A.
B. CART has arranged with the television production companies
(subject to network approval) to provide the video portion of
the program feed from the mobile unit to Organizer/Promoter,
so that Organizer/Promoter may feed the video signal as a
courtesy to the medical center, stewards trailer (with
monitor), CART business center, operations trailer (with
monitor), media center and hospitality suites. This feed is
limited to on-site press and hospitality use only. Any other
feeds to hotels, bars, or other establishment(s) whether
on-site or off, are strictly prohibited, unless approved in
writing by CART or the television production company.
Organizer/ Promoter shall be responsible for the installation
and maintenance of appropriate cable originating at the
television compound which will then feed the system.
Maintenance and operation of the system is the sole
responsibility of Organizer/Promoter.
C. CART and Organizer/Promoter agree that it is in the best
interest of the sport, its promoters and sponsors to have the
same on-site and United States television title sponsor. CART
and Organizer/Promoter recognize and agree that all United
States television entitlements are derived from a privilege
granted by the United States television network and are
subject to United States network approval. In the event
Organizer/Promoter provides CART with a United States
television entitlement sponsor, such sponsor must agree to:
(i) purchase one (1) of several commercial unit package
options for either United States network or cable coverage to
be published by CART or its designee each year, (ii) enter
into a negotiated agreement with CART or its designee, or
(iii) guarantee a payment for entitlement in return for which
Organizer/Promoter will receive eight (8)
14
15
Rockingham Promoter Agreement
July 3, 2000
Final Contract
thirty (30) second commercial units to package with its
on-site title. The published rate option packages and payment
option will be made available to Organizer/Promoter at least
one (1) year in advance.
D. Organizer/Promoter may, at its option, and subject to approval
by CART or its designee and the appropriate network, elect to
guarantee over-the-air United States broadcast network
coverage of its Event. In this event Organizer/Promoter will
be required to provide a United States television title
sponsor subject to: (i) purchase of one (1) of several
published minimum commercial unit packages, (ii) enter into a
negotiated agreement with CART or its designee, or (iii)
guarantee a payment for entitlement to be determined each
year. In the payment option (iii) Organizer/Promoter will
receive eight (8) thirty (30) second units in the telecast to
package with its on-site title.
E. In the event Organizer/Promoter elects not to provide CART
with a United States television entitlement sponsor or to
guarantee over-the-air United States broadcast network
coverage, then CART or its designee shall have the option to
secure a United States television entitlement sponsor which
need not be the same as the on-site entitlement sponsor.
F. CART and Organizer/Promoter agree that the policies and terms
set forth as a condition of both United States and
international television coverage of this Event may change
from time to time, and, therefore, the United States and
international television agreement may supersede portions of
this Agreement. In the event that the United States and
international television agreement supersedes a portion of
this Agreement, CART will immediately notify
Organizer/Promoter and work toward a mutually agreed upon
solution.
28. Organizer/Promoter recognizes and acknowledges that CART has the right
to contract for official sponsors for the FedEx Championship Series,
which need not coincide with specific Event sponsors, as well as to
grant other official product designations on a Series wide basis, in
CART's sole discretion.
29. A. CART acknowledges that Organizer/Promoter intends to enter
into a sponsor relation with a vehicle manufacturer. If such
vehicle manufacturer is represented within CART pace car
fleet, CART will utilize that vehicle to pace the race. If
CART does not have that vehicle in the CART pace car fleet,
Organizer/Promoter and the vehicle manufacturer must provide a
pace car that meets CART safety and pace car standards. If not
provided, CART is under no obligation to use a car from the
vehicle manufacturer. Subject to the foregoing, CART or its
designee shall have the exclusive
15
16
Rockingham Promoter Agreement
July 3, 2000
Final Contract
right to provide any and all pace cars throughout the entire
Event. In addition, only pace cars provided by CART or its
designee shall be allowed to participate in the parade laps
immediately preceding the start of the Champ Car race. Further
details of these and other responsibilities of
Organizer/Promoter to CART and/or a co-Series sponsor to be
designated by CART are agreed to as outlined in SCHEDULE D
attached hereto and made a part hereof.
B. The Events shall be included in the FedEx Series sponsorship
and marketing program, in each year such Event(s) are
conducted pursuant to this Agreement, including extensions
and/or renewals thereof, up to and including the year 2001,
provided the FedEx Series Sponsorship Agreement is then in
full force and effect, or longer if such Agreement is
extended. Details of the FedEx sponsorship and marketing
program and the responsibilities of Organizer/Promoter to
FedEx are agreed to as outlined in SCHEDULE G attached hereto
and made a part hereof.
30. A. Organizer/Promoter agrees that the scheduled CART sanctioned
activities during each Event shall have priority over any
other race or other activity scheduled during such Event.
Organizer/Promoter will not schedule any supporting races,
tests, or ancillary activities on the same day as registration
or inspection, or on any other day during an Event, without
prior written approval of cart, such approval not to be
unreasonably withheld. Further details of these and other
scheduling considerations/requirements are agreed to as
outlined in SCHEDULE E attached hereto and made a part hereof.
B. Organizer/Promoter acknowledges that current CART regulations
prohibit testing by CART teams at facilities outside the North
American continent and agrees to abide by this regulation.
31. CART and Organizer/Promoter shall mutually agree upon grid/pre-race
activities to be conducted by cart, which activities shall include but
are not limited to the pole awards, other contingency award activities,
driver introductions, etc.
32. CART and Organizer/Promoter shall mutually agree to maintain control of
the Victory Circle location, facilities and proceedings. Details of
these proceedings and the requirements of Organizer/Promoter in regard
thereto are agreed to as outlined in SCHEDULE F attached hereto and
made a part hereof.
16
17
Rockingham Promoter Agreement
July 3, 2000
Final Contract
33. CART shall have reasonable access to the PA system in order for CART to
fulfill its contractual obligations to its sponsors and inform
participants and spectators of activities during the Event.
34. A. CART acknowledges Organizer/Promoter's desire to be the
official CART merchandiser at the events. Organizer/Promoter
and CART will negotiate in good faith to complete a mutually
acceptable agreement. In the event an agreement is not
reached, the following will apply. CART or its licensed
representative, shall have the right to sell official licensed
CART merchandise from its own temporary concession facility
and/or a facility supplied by the Organizer/Promoter as
determined by CART. Official Event Concessionaire locations
notwithstanding, CART or its licensed representative shall be
given first choice for any and all of its vendor locations
which shall be in a prominent, high-traffic location,
generally near the paddock area. CART or its licensed
representative shall pay to the Organizer/Promoter for each
location including associated credentials and any required
services, the lesser of the then current market price or a
single fee of One Thousand Five Hundred ($1,500.00) Dollars.
Sales information shall be confidential and proprietary
property of CART or its licensed representative.
B. Selected items of CART merchandise, at the discretion of CART,
will be offered to the Organizer/Promoter for sale in its
concession facilities at terms to be agreed upon by the
parties in writing in advance.
C. Organizer/Promoter shall include at its cost a CART Licensed
Products advertisement in the official race program. Camera
ready art shall be provided by CART or its licensed
representative.
D. CART and Organizer/Promoter shall negotiate in good faith for
the manufacture and distribution by CART licensees of
merchandise bearing the marks of both CART and the Event. Such
cross-licensed merchandise may be offered for sale through
CART and Organizer/Promoter controlled vendor locations as
agreed upon by the parties. CART licensees shall also have the
opportunity to sell such cross-licensed merchandise to
off-track retailers.
E. CART logos and trademarks including but not limited to all
Series logos and marks, sanctioning body logos and marks, and
any other CART or CART related logos and marks may not be used
by Organizer/Promoter on any merchandise whatsoever without
express advance written approval of CART.
17
18
Rockingham Promoter Agreement
July 3, 2000
Final Contract
F. It is Organizer/Promoter's responsibility to insure that any
and all concessions and/or merchandise is properly licensed.
In the event that CART discovers any unlicensed products, it
will have the right to take appropriate action in its sole
discretion.
G. All CART Champ Car teams will be afforded the opportunity to
sell merchandise within the confines of the race facility. All
teams will be in a prominent, high-traffic location.
Participating teams will pay a rights fee for the location,
which fee shall be (i) consistent with the then current market
price and (ii) no less favorable than the terms and conditions
provided to other vendors located within the same area.
H. This Section 34 shall supersede all related terms of the
Organizer/Promoter's standard Vendor Agreement.
35. In conjunction with the CART Winner's Circle Club, Organizer/Promoter
shall provide at its expense:
A. Limited access to restricted areas for club members during
group tours and club functions.
B. Inclusion of a CART Winner's Circle Club advertisement in the
official race program. Camera ready art shall be provided by
CART or its designee.
C. Covered facility for meetings with a proper PA system (size to
be specified by CART).
36. Organizer/Promoter shall cooperate with CART in its spectator research
efforts, including but not by way of limitation allowing CART
representatives access to spectators for personal interviews and
questionnaire distribution and inclusion of a CART questionnaire in the
official race program, for which camera ready art will be provided. The
results of such research shall be made available without cost to
Organizer/ Promoter.
37. A. In addition to the FedEx Series sponsorship and marketing
program, CART shall have the right to designate up to seven
(7) exclusive sponsorships on a series-wide basis utilizing
the following entitlements to be provided by
Organizer/Promoter for each sponsorship at no cost to CART
except as otherwise stated:
- Series-wide product category exclusivity;
- Twenty Thousand ($20,000.00) Dollar
hospitality credit
18
19
Rockingham Promoter Agreement
July 3, 2000
Final Contract
which can be applied to facility, food and
beverage;
- Acknowledgment by Organizer/Promoter as an
Event sponsor, with such recognition to
include all entitlements normally afforded
an associate Event sponsor;
- Inclusion in the Event press kit;
- One full page, four-color advertisement in
the Event souvenir program;
- One page of editorial in the Event souvenir
program;
- One 40' x 40' expo/sampling space;
- Twenty (20) public address announcements
over Event weekend;
- Grandstand admission tickets to be mutually
agreed upon by CART and Organizer/Promoter;
- Restricted area credentials to be mutually
agreed upon by CART and Organizer/Promoter;
- Track side signage, which receives
significant exposure to the global audience;
CART and Organizer/Promoter to agree on size
and placement;
All costs associated with the design and production of the
advertising page and wall signs shall be borne by Sponsor. For
each such sponsorship sold by CART, Organizer/Promoter shall
receive for each year of the sponsorship, One Hundred Thousand
($100,000.00) Dollars in return for the above listed
entitlements. The parties acknowledge the following categories
represent acceptable potential sponsorships that CART shall
have the right to negotiate for series-wide sponsorships:
- payment systems
- confectionery
- snacks
- film
- camera
- electronics (i.e., television, hi-fi, audio,
etc.)
- long distance
Exclusive of FedEx and MCI (or its British affiliate),
Organizer/Promoter shall have the right to market the race to
sponsors in the exclusive marketing categories so long as CART
has not secured Series wide sponsorship in that category six
(6) months prior to an Event hereunder. While CART has the
right to try to negotiate a series-wide sponsorship in the
above categories, Organizer/Promoter also has the right to
negotiate for Event sponsors in the same categories.
Organizer/Promoter shall promptly notify CART of any proposed
sponsorship involving one of the above categories, and may
proceed further with such sponsorship only if CART does not
then have consummated or pending (subject to
19
20
Rockingham Promoter Agreement
July 3, 2000
Final Contract
consummation within a reasonable period of time) the sale of
the category Series wide. Further, CART shall negotiate with
such proposed sponsor in good faith for a reasonable period of
time to secure the participation of such sponsor on a
series-wide basis. If after a reasonable period of good faith
negotiations, CART and sponsor do not come to an agreement,
then Organizer/Promoter may proceed with such sponsor with
respect to one or more Events hereunder. Upon the conclusion
of the last Event subject to such agreement with
Organizer/Promoter, the category shall again become subject to
the above provisions.
B. Organizer/Promoter shall provide CART with two (2) pages in
the Event Program without charge for CART's use only. CART's
placement of advertising within the Program shall be sensitive
to Organizer/Promoter's existing commercial and promotional
relationships.
C. Organizer/Promoter recognizes that each participating team has
a race sponsor. Organizer/Promoter agrees that each team may
place its team name and sponsor(s) on both sides of the wall
in the team's assigned pit box, subject to applicable
governmental laws and regulations.
38. Organizer/Promoter shall provide CART at no cost a preferred location
pit row suite or other mutually agreed upon hospitality provisions for
not less than forty (40) guests per day. Hospitality provisions will
include food and beverage (alcoholic and non-alcoholic) as associated
with pit suite participation.
39. If appropriate as determined by CART in its sole discretion, each
Competition shall appear on the FIA calendar as a full international
FIA event. Organizer/Promoter agrees to file this listing through CART
and reimburse CART for all applicable listing fees. In addition,
Organizer/Promoter agrees to pay through CART the applicable National
Motorsports Council assessments, as determined by the Council's
Executive Committee.
40. Organizer/Promoter agrees to indemnify and hold harmless CART, its
directors, officials and officers, participants, agents and employees,
members and sponsors ("Indemnitees") from any and all liabilities
including liability resulting from negligence of the same and all costs
and expenses, including attorneys fees incurred in the defense thereof,
asserted or imposed upon CART, its directors, officials, official
representatives, employees, officers, members and sponsors arising out
of or as a result of an Event hereunder, directly or indirectly, and
whether any such claim or liability arises before, during or after the
Event, excluding liabilities, costs or expenses arising out of the
gross negligence or gross misconduct of Indemnitees.
20
21
Rockingham Promoter Agreement
July 3, 2000
Final Contract
41. Organizer/Promoter agrees not to take any action adverse to the
interest of CART and, in consideration of the acceptance and approval
of this application, releases and discharges CART and its officials and
representatives from all liability for personal injury that may be
received, and from all claims and demands for damages to real or
personal property or to any person growing out of or resulting from an
Event hereunder, whether caused by any construction or condition or any
track or track equipment, cars or debris, or resulting from any act or
failure of any official or any person assisting the officials serving
in connection therewith, excluding liabilities, costs or expenses
arising out of the gross negligence or gross misconduct of Indemnitees.
42. Nothing contained herein shall be construed to place CART in the
relationship of a partner or joint venturer with Organizer/Promoter,
and Organizer/Promoter shall have no power to obligate or bind CART in
any manner whatsoever other than as specifically provided for herein.
Neither party undertakes by this Agreement to perform any obligations
of the other, whether regulatory or contractual, or to assume any
responsibility for the other's business or operations.
43. A. The validity, interpretation and construction of this
Agreement shall be governed and construed by the laws of the
State of Michigan.
B. In the event a dispute arises under this Agreement which
cannot be resolved, such dispute shall be submitted to
arbitration and resolved by a single arbitrator (who shall be
a lawyer) in accordance with the Commercial Arbitration Rules
of the American Arbitration Association then in effect. All
such arbitration shall take place at the office of the
American Arbitration Association located in Southfield,
Michigan. The award or decision rendered by the arbitrator
shall be final, binding, and conclusive and judgment may be
entered upon such award by any court.
44. This Agreement is not transferable or assignable without CART or
Organizer/Promoter's written approval, which approval shall not be
unreasonably withheld. Any transfer or assignment in violation of this
provision shall be void.
45. Any notice or written communication required or permissible hereunder
shall be sent by registered mail (or certified mail with return
receipt), postage prepaid, addressed as follows:
To CART:
Championship Auto Racing Teams, Inc.
▇▇▇ ▇. ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇, ▇▇ ▇▇▇▇▇
21
22
Rockingham Promoter Agreement
July 3, 2000
Final Contract
To Organizer/Promoter:
Rockingham Motor Speedway
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇ ▇▇▇▇ ▇▇▇ England
46. A. This Agreement (including the Schedules annexed hereto)
contains the entire agreement of the parties hereto and no
representations, inducements, promises, or agreements, oral or
otherwise, not embodied herein shall be of any force or
effect. This Agreement may be modified only upon the written
consent of the parties hereto.
B. No waiver by either party, whether expressed or implied, of
any provision of this Agreement or any breach or default shall
constitute a continuing waiver thereof.
C. Except as specifically otherwise stated, each and every of the
rights, remedies and benefits provided by this Agreement shall
be cumulative, and shall not be exclusive of any other said
rights, remedies and benefits, or of any other rights,
remedies and benefits allowed by law.
D. If any provision in this Agreement is held to be invalid or
unenforceable, it shall be ineffective only to the extent of
the invalidity, without affecting or impairing the validity
and enforceability of the remainder of the provision or the
remaining provisions of this Agreement.
47. The parties acknowledge the importance of each party's reputation, good
will and public image and, accordingly, agree to maintain and enhance
such image by restraining from taking any action contrary to the best
interest of either party, or detracting from the reputation of either
party. Each party shall refrain from making any statements about the
other party that adversely affects, casts in an unfavorable light, or
otherwise maligns the business or reputation of such other party or any
of its principals.
48. At all times, the terms and conditions of this Agreement are
confidential to CART, Organizer/Promoter, their parent companies and
their respective subsidiaries, and shall not be disclosed to any other
entity or individual without the other party's prior written consent.
Notwithstanding the foregoing, disclosure may be made if necessary to
enforce a party's rights under this Agreement, or if required by any
securities or other law or regulation or by a governmental agency, in
which case any and all documents, information, or materials disclosed
shall be marked "confidential" and such party shall seek confidential
treatment of such information.
22
23
Rockingham Promoter Agreement
July 3, 2000
Final Contract
49. Organizer/Promoter shall be responsible for the transportation of the
race cars and equipment of cart and, the race teams between the United
States of America and the United Kingdom, as well as travel and hotel
costs for the teams and officials and the assistants to the officials,
as reasonably determined by CART. In addition, series suppliers,
Official Sponsors and other participants (as mutually agreed between
Organizer/Promoter and CART) may be provided with freight cargo space,
if such space is available. Details to these arrangements and
requirements are agreed to as outlined in SCHEDULE H attached hereto
and made a part hereof.
50. The following Schedules are attached hereto, incorporated herein by
reference as though set forth in their entirety in this Agreement, and
labeled as follows:
SCHEDULE A - OPERATIONAL, MEDIA, AND OTHER FACILITY/SUPPLY
REQUIREMENTS
SCHEDULE B - INSURANCE REQUIREMENTS
SCHEDULE C - UNIFIED CREDENTIAL SYSTEM AND FACILITY ACCESS
PROVISIONS
SCHEDULE D - CO-SERIES SPONSOR AND OFFICIAL PACE CARS
SCHEDULE E - EVENT ACTIVITIES
SCHEDULE F - POST RACE PROCEDURES/ACTIVITIES
SCHEDULE G - FEDEX SPONSORSHIP AND MARKETING PROGRAM
SCHEDULE H - CARGO, TRAVEL ARRANGEMENTS AND OTHER
ACCOMMODATIONS
Any person or organization having responsibility in the organization, promotion
or staging of any Competition, whether by contract or otherwise, shall co-sign
this Agreement and shall be jointly responsible hereunder. Organizer/Promoter
and the undersigned warrant and represent that Applicant has the full right and
authority to enter into and perform this Agreement, and that the execution and
delivery of this Agreement has been duly authorized by all necessary
governmental and/or corporate action.
Date:
----------------------- -----------------------------------------------
Applicant
By:
-------------------------------------------
Its:
-------------------------------------------
Date:
----------------------- -----------------------------------------------
Co-Signer's Signature
23
24
Rockingham Promoter Agreement
July 3, 2000
Final Contract
CART APPROVAL
The foregoing application is hereby approved and accepted in accordance
with the terms stated therein.
Date: CART, Inc.
-----------------------
By:
-----------------------------------
Its:
24
25
SCHEDULE "A"
OPERATIONAL, SUPPLY, FACILITY AND UTILITY REQUIREMENTS
------------------------------------------------------
Pursuant to Paragraph 20 of the Agreement, Organizer/Promoter shall
provide at its expense except as otherwise specifically provided the
following additional items. The specific items listed in this Schedule
A reflect minimum requirements for certain areas, and should not be
construed as inclusive of all necessary items Organizer/Promoter must
provide.
A. MEDIA AREAS
-----------
GENERAL SET-UP REQUIREMENTS:
- The deadline for having the press facility fully operational
is 5:00 p.m. on the day prior to the commencement of CART
on-track activities. Among those items that must be fully
operational include: televisions in place with cable hookups;
all seats assigned with placards in the deadline media area
with help from CART Public Relations staff; all telephones are
in place, have service and are operational; unrestricted phone
lines with instruments for CART are in place and operational
with no restrictions; all media-related bins and press-kit
tables are in place as well as labeled, if need be; power
supplies are in place and working throughout; press conference
area is operational in regard to setup of microphones, sound
system, speakers, lectern, scaffolding and media seating.
- The auxiliary and/or photo press room also must be fully
operational with all the above items located in the main area
and staffed with track representatives.
- It is required that a track public relations representative is
at the media center the day prior to the commencement of CART
on-track activities.
- The track will provide runners to retrieve daily statistical
information from CART Timing and Scoring. The person(s) and
procedure must be in place on the day prior to the
commencement of CART on-track activities.
PRESS ROOM FACILITIES:
Solid, climate controlled, weatherproof and noise-insulated
structures, sufficient in size to accommodate the number of
attending media representatives and capable of supporting
separate work areas as follows. Ample televisions, power,
telephones and working materials will be provided for each
area, with specific requirements identified within this
Schedule A:
- Deadline Media
- Non-deadline Media
- Photo Media, with lockers provided
- Event Media Relations
- Support Event(s) Media Relations
26
PRESS CONFERENCE/INTERVIEW AREA FACILITIES:
Solid, climate controlled, weatherproof and noise insulated
structure. Area shall be set-up with skirted tables and chairs
placed on a raised podium, and a lectern for the moderator.
Proper lighting for television and photographers is required.
A CART approved backdrop shall be placed behind the drivers'
interview tables.
VIEWING STANDS FACILITIES:
- Required for venues that do not provide a legitimate track
view from the media center or a press box
- Viewing stand will not be a section of seating roped off in a
general spectator area
- Viewing stand should be in or near the suite section or its
own entity and should be under cover
- Viewing stand needs tables and chairs and the seats are to be
assigned with help from the CART Public Relations staff
- Viewing stand needs to be staffed by a track public relations
representative
- Requires a cooler of cold beverages for the media
- A shuttle service should be considered if the viewing stand is
a good distance from the media center
CART COMMUNICATIONS DEPARTMENT OFFICE FACILITIES:
- Requires an area in the main deadline press facility, an
enclosed office if available
- Area needs to have enough table space and seating for a
minimum of six (6) CART representatives
EQUIPMENT:
Photocopy Machines - A minimum of two (2) photocopy machines, which
shall be print quality high speed photocopiers with collating and
stapling capability.
Fax Machines - A minimum of three (3) fax machines.
Televisions - The amount of televisions will be specified for each
venue, with the size of the media center as well as additional
auxiliary areas being taken into consideration; televisions are
required in ALL media areas, including auxiliary areas; recommend that
televisions are either mounted to the wall with swivel hinges or on
wheel carts; the amount of televisions can be reduced if a big-screen
television (54) inches is utilized for a video feed in a primary
location; a minimum of three (3) televisions shall be provided in the
viewing stands; the CART Communication Department office must have a
minimum of five (5) televisions for timing and scoring and video feed.
Sound System - A sound system for press conferences will be provided by
the track; the requirements include four (4) microphones for the
podium; one (1) microphone for the speaker at the lectern; speakers;
and a multi box for radio media to plug into and record.
2
27
B. ACCREDITATION FACILITIES
------------------------
LOCATION:
- easily accessible by public transport
- adequate car parking
- within fifteen (15) minutes walking distance to the track
SIZE:
- minimum of 12 feet x 40 feet working area
- separate area for office and/or storage of computer cases
- 20 feet minimum of table/desk space
- seating for a minimum of ten (10) people
- ample space inside/under cover to allow for queuing of guests
- entrance and exit doors
TEMPERATURE:
- heating/air conditioning control to maintain adequate
temperature for computers
SIGNAGE:
- directing people to registration area
- "entrance" and "exit" signs to provide smooth flow
- external signage upon leaving showing way to parking areas and
entrances
- identifying separate series within one credential area
SECURITY:
- all doors, windows to be lockable
- in the case of a temporary structure an internal fully secure
facility should be provided and/or overnight security.
CLEANING:
- the facility should be cleaned at the end of each day
C. OPERATIONS
----------
FACILITIES:
The parties shall mutually agree on reasonable facility requirements
for the Events in the United Kingdom. As a minimum, the following areas
have been identified as being required and where applicable should be
in solid, climate controlled, weatherproof structures:
Race Control Area - An elevated, solid, quiet, climate controlled, and
weatherproof structure with an uninterrupted view of the front
straight, start/finish line pit entrance and exit and last turn.
Structure size: 30 feet x 15 feet. The structure design must provide
3
28
windows with anti-glare provisions and minimal structural interference
to the site line along the front face and forward half of each end
panel. Access to this structure must be provided for safe loading of
equipment. This structure shall be placed at an angle to and distance
from the race track as prescribed by CART. This facility is for the
exclusive use of the officials as their presence is required to control
on track activities;
Radio Room with a charging and repair area;
Timing and Scoring Area - A separate solid, elevated, weatherproof,
climate controlled timing and scoring structure with an uninterrupted
view of the front straight at start/finish line, pit entrance and exit,
and last turn. The enclosed structure shall be at least 12 feet deep x
40 feet long. The structure design must provide windows with anti-glare
provisions and minimal structural interference to the site line along
the front face and forward half of each end panel. Additional elevated
seating to accommodate 30 manual scorers adjacent to the main timing
and scoring area.. (Option: the enclosed structure of a minimum size of
12 feet x 65 feet). The dimensions supplied are to exclusively
accommodate scoring for CART sanctioned activities. Additional
considerations must be made for support event timing and scoring
activities. Access to this structure must be provided for safe loading
of equipment. This structure shall be placed at an angle to and
distance from the race track as prescribed by CART;
Operations Area, with appropriate furnishings;
Medical Facility with a separate area for CART medical operations, with
appropriate furnishings;
CART Business Facility, with appropriate furnishings;
CART Stewards Area, with appropriate furnishings;
Battery Charging Facility, with appropriate furnishings;
Two (2) separate tire supply facilities, at no cost to CART or the tire
suppliers, with high pressure compressed air with an adequate air dryer
which must be fitted; each facility at least fifteen hundred (1,500)
square feet, with room for at least four (4) full sized sea containers
adjacent to each facility;
Space for official equipment suppliers, at a cost to be mutually
determined between CART and Organizer/Promoter;
Space for engine manufacturers, at a cost to be mutually determined
between CART and Organizer/Promoter;
Space for chassis manufacturers, at a cost to be mutually determined
between CART and Organizer/Promoter;
Meeting Area - A solid, quiet, climate controlled, weatherproof
structure capable of accommodating sixty (60) people theater style.
This facility is for the exclusive use of the CART competition
department during the Event;
Fuel Compound Area and Scales;
Technical Inspection Area that must be capable of staging three (3)
cars in line and must be capable of having these cars run directly
through such area;
Manifold Pressure Relief Valve Testing Area.
TEAM WORK AREA REQUIREMENTS:
At a minimum, each Entrant (race car with assigned driver) shall be
provided the following:
Paddock (Garage) Work Area - A 17' x 40' area covered, weatherproof
work area; adequate overhead lighting; high pressure air supply (110
psi) with at least one (1) one-
4
29
quarter (1/4) inch NPT female fittings outlet. This air supply must be
dry air (through an air dryer). A potable water service (approximately
40 psi) shall be supplied via hose bib faucet.
De-briefing Area - One hundred fifty (150) square feet of quiet,
climate controlled, weatherproof area with electricity, tables, chairs
and overhead lighting. This area to be adjacent to paddock work area,
or as close as possible.
Pit Area - Potable water service (approximately 40 psi) shall be
supplied via hose bib faucet; Fire protection shall include charged
high pressure water line.
Storage Area - There shall also be a convenient secure storage area for
the team, CART, and suppliers shipping storage containers.
If the work area provided by Organizer/Promoter is not adequate, in
CART's sole discretion, Organizer/Promoter will use its best efforts to
provide adequate facilities to meet the needs of the CART teams.
EQUIPMENT:
Two (2) print quality hi-speed photo copiers (Timing and
Scoring/Operations Area) with collating and stapling capability.
Timing and Scoring System - see paragraph 20B of the Agreement.
COMMUNICATION CIRCUITS:
Land line communication system connecting all trackside stations, pit
in, pit out, pit center, race control and start/finish line.
A separate private land line communication circuit connecting timing
and scoring, race control, pit center and starters stand.
SAFETY:
Organizer/Promoter shall supply four (4) first response trucks. Trucks
to be supplied in accordance with the specifications supplied by CART.
Option: Organizer/Promoter to air freight CART's safety equipment from
USA to England to USA.
CART also requires two (2) pick-up trucks (1/2 ton) for track clean up
and operational support.
FUEL:
Organizer/Promoter shall provide fuel for all safety vehicles:
Safety Vehicles - unleaded gasoline - approximately 200 gallons
5
30
Organizer/Promoter shall be responsible for providing an adequate
supply of reagent grade methanol for the race cars and also for
supplying the equipment necessary to contain, transport and dispense
the fuel. The amount of fuel required shall be mutually agreed not less
than sixty (60) days in advance of the Event.
Organizer/Promoter recognizes that CART has a Series-wide Official Fuel
Supplier arrangement and acknowledges that Organizer/Promoter will not
enter into any specific Event official fuel supplier arrangements.
Organizer/Promoter shall supply thirty (30) pit fuel storage tanks
constructed in accordance with the specifications supplied by CART.
NITROGEN:
Organizer/Promoter shall provide bottles of compressed nitrogen for
Entrants in sufficient quantities for the Competition.
Organizer/Promoter is responsible to supply bottles with fittings
compatible with team equipment. Each Team shall provide a deposit for
the use of adapters, which deposit shall be refunded to the Teams upon
return of the adapters.
MANIFOLD PRESSURE RELIEF VALVE TESTING EQUIPMENT:
Organizer/Promoter shall provide an air compressor with a minimum
capacity of one hundred eighty (180) cubic feet per minute (at 100
psi), with a thirty (30) gallon storage tank. A minimum one inch
delivery hose is required.
GENERAL:
Minimum of three hundred fifty (350) pounds of ice each day from
Thursday (Wednesday for Saturday Champ Car races) until Sunday of race
weekend including any rain dates. In addition, 100 pounds of ice on the
day prior to the first Event day, as noted above.
Organizer/Promoter shall provide worker lunches and drinking water for
each day of the Event weekend, i.e., Thursday until Sunday (Wednesday
for Saturday Champ Car races) including any rain dates. CART will
identify the quantity to be supplied. Alternatively, cart and
Organizer/Promoter shall mutually agree upon food service to be
provided.
All areas and utilities shall be accessible for use by CART on or
before 8:00 AM the Wednesday prior to the published race date.
HAZMAT:
Organizer/Promoter shall work with CART to take all reasonable
precautions for the handling and disposal of HAZMAT materials. Further,
Organizer/Promoter shall work with CART to provide, at a reasonable
cost to the teams, basic HAZMAT materials that may be readily available
in Germany. Organizer/Promoter may also provide alternative
6
31
transportation of HAZMAT materials, provided such transportation is
timely.
7
32
D. TELEVISION AND RADIO
--------------------
As provided in Paragraphs 20 and 27 of the Agreement,
Organizer/Promoter shall comply with CART's television and radio
requirements; CART will review and determine such requirements as soon
as possible, which shall be included in this section and elsewhere
where appropriate in this Schedule A.
FACILITIES:
Approximately 200 feet X 150 feet for use by CART Productions, Domestic
Network Television, International Network Television, broadband, other
approved broadcast organizations and related production mobile units,
broadcast equipment and personnel.
Booths
1 - U.S Television 15 x 15
1 - Domestic Television 15 x 15
4 - International booths 8 x 8
1 - CART RADIO Network 8 x 8
1 - CART RADIO NETWORK SPANISH 8 x 8
ACCESS:
Organizer/Promoter shall accord all broadcast networks and/or their
designees the right to install and maintain at, and remove from, the
site of the Event and associated areas such wires, cables, and
apparatus as the network or its designee deems necessary for recording
and/or telecasting the Event (provided that there shall not be any
interference with the use of or means of ingress or egress at the site
or associated areas).
SECURITY:
Organizer/Promoter must provide sufficient security, with radio
communications, for all broadcast equipment in the television compound
and around the track, including camera, remote, and booth locations.
Security should be available from the first evening of arrival through
the morning of the last day of departure of all broadcast equipment.
ADDITIONAL FACILITIES:
CART may also require, and Organizer/Promoter agrees to provide,
additional space to locate one (1) or more mobile announce booths to
accommodate international networks, plus any required electrical power.
All reasonable costs associated with the provision of power and other
required facilities (i.e. telephone, etc.) for these additional
international networks shall be the responsibility of CART.
8
33
EQUIPMENT VENDORS:
Broadcast crews will use best efforts to achieve highest quality,
lowest cost for renting equipment from Organizer/Promoter's exclusive
source. If this cannot be achieved, then the exclusive track source
will not apply to production company's needs.
E. WINNERS CIRCLE
--------------
FACILITIES:
- A fenced, separate area, preferably away from pit lane
- Photographers' riser, placed proportionately to the podium
- Raised podium
- Two separate entrances: One for drivers, team owners and
presenters only (if necessary, TV); the other for VIP's,
sponsors and photographers
F. CHAPEL
------
Organizer/Promoter shall provide appropriate space and facilities for
use as a chapel during all CART Events at a maximum cost to CART of One
Thousand ($1,000.00) Dollars. These facilities shall include at a
minimum a solid, quiet, climate controlled, weather proof structure
capable of accommodating sixty (60) people, and a small office/private
room.
G. ELECTRIC/POWER REQUIREMENTS
---------------------------
GENERAL:
All power supplied shall be 60-cycle and should be dedicated "shore"
power, as opposed to generator power, where possible. If "shore" power
is not available, dedicated generator power must meet the requirements
of the network television production company, including but not limited
to: back-up power, redundant systems, frequency controlled, and
automatic switch-over features. Organizer/Promoter shall provide an
adequate supply of electrical power to service all areas, consistent
with the applicable function or activity therein. Listed power
requirements for Organizer/Promoter provided facilities are exclusive
of climate control and lighting requirements. Where shore power proves
to be neither clean, stable, nor dependable at the levels required,
Organizer/Promoter shall provide generator back up by frequency
controlled, automatic switch-over generators, at Organizer/Promoter's
sole expense.
9
34
MEDIA CENTER:
Organizer/Promoter should provide CART Communications staff at least
two (2) 110 volt, 20 amp, single phase circuits or equivalent with a
minimum of eight (8) electrical outlets. Adequate power and at least
one electrical power strip (with surge protector) adequate to
accommodate the power supply requirements of media lap top computers
for every two (2) media persons in media area.
ACCREDITATION FACILITIES:
Organizer/Promoter shall provide at least one (1) 110 volt 30 amp,
single phase circuit, exclusive of climate control and lighting, with a minimum
of four (4) main power outlets.
OPERATIONS:
Radio Room 110v/115v 6 30 amp single phase
Race Control 110v/115v 5 20 amp single phase
Timing and Scoring 110v/115v 6 30 amp single phase
Inspection Area 110v/115v 2 30 amp single phase
CART Operations Facility 110v/115v 2 30 amp single phase
CART Business Center 110v/115v 2 30 amp single phase
CART Medical Facility 110v/115v 1 30 amp single phase
Chapel 110v/115v 1 20 amp single phase
CART Fuel Compound 110v/115v 2 30 amp single phase
Each Tire Compound 220v/240v 2 50 amp single phase
Scales 110v/115v 2 25 amp single phase
Each Supplier Area 110v/115v 2 20 amp single phase
Each Engine Area 110v/115v 2 20 amp single phase
Each Chassis Area 110v/115v 2 20 amp single phase
*Each Entrant Garage Area 110v/115v 1 30 amp single phase
*Each Entrant Garage Area 110v/115v 1 20 amp single phase
*Each Entrant Pit 110v/115v 1 30 amp single phase-4 outlets
*Each Entrant Pit 110v/115v 1 20 amp single phase
*Each Entrant Briefing Area 110v/115v 2 15 amp single phase
(exclusive of air conditioning)
Each Support Race Entrant Pit Area
110v/115v 20 amp single phase
(*Entrant is defined as a race car with an assigned driver)
TELEVISION AND RADIO:
Domestic Broadcaster/Host
-------------------------
Mobile 1 208v 200 amp 3 phase
Mobile 2 208v 200 amp 3 phase
Mobile Support 208v 200 amp 3 phase
Uplink 208v 150 amp 3 phase
10
35
World Feed
----------
Mobile 1 208v 200 amp 3 phase
Mobile 2 208v 200 amp 3 phase
Mobile Support 208v 100 amp Single phase
Uplink 208v 150 amp 3 phase
In Car 208v 100 amp Single phase
RF 208v 100 amp Single phase
U. S. Network
-------------
Mobile 1 208v 200 amp 3 phase
Mobile 2 208v 200 amp 3 phase
Uplink 208v 150 amp 3 phase
International
-------------
Mobile 1 208v 200 amp 3 phase
Mobile 2 208v 200 amp 3 phase
Uplink 1 208v 150 amp 3 phase
Uplink 2 208v 150 amp 3 phase
Uplink 3 208v 150 amp 3 phase
H. TELEPHONE REQUIREMENTS
----------------------
GENERAL:
All line charges reasonably related to CART business activities, within
the United Kingdom, unless otherwise stated, shall be to the account of
Organizer/Promoter; all media telephones require free local access; no
credit card slide telephones; as a minimum, the following areas must be
supplied telephones which provide access to commercial telephone lines.
MEDIA AREAS:
Deadline Media Area - One (1) telephone for every two (2) media
persons;
Auxiliary Media Area - One (1) telephone for every four (4) media
persons;
CART Communications Department - Five (5) dedicated unrestricted access
lines with local and international service and instruments shall be
provided for the exclusive use of the CART Communications Department
staff. All charges related to these telephones are the responsibility
of Organizer/Promoter.
11
36
OPERATIONS:
CART Registration Area - One (1) telephone line and one (1) facsimile
line with facsimile machine;
CART Operations Area - Two (2) telephone lines and one (1) facsimile
line with facsimile machine;
CART Medical Facility - One (1) telephone line and (1) facsimile line
with facsimile machine, with both lines having
local and international service;
CART Business Center - Two (2) telephone lines and one (1) facsimile
line with facsimile machine;
Race Control - Two (2) telephone lines and one (1) facsimile
line with facsimile machine;
Timing & Scoring - Six (6) telephone lines and (1) facsimile line
with facsimile machine;
Chief ▇▇▇▇▇▇▇ Trailer - Two (2) telephone lines and one (1) facsimile
line
TELEVISION AND RADIO:
Television Compound area: - Organizer/Promoter shall ensure that
seventy-five (75) telephone circuits are permanently installed in the
television compound.
Announce Booths: A minimum of six (6) telephone circuits permanently
installed in each announce booth.
I. RESTROOMS
---------
There must be adequate facilities, to be specified by CART, in the paddock or
garage area, for the exclusive use of the officials and team personnel.
J. GENERAL
-------
As the execution of the Competition and broadcast coverage of CART events is
vital to the success and growth of the Series and each Event, and as newer and
additional technical facilities may be required to meet media, operational and
broadcast production standards in order to enhance and upgrade the facility and
broadcast quality, Organizer/Promoter agrees to provide additional space, power,
facilities, or other services as may be requested by CART. CART agrees to
provide Organizer/Promoter as much advance notice as possible of these
additional requirements. Organizer/Promoter is hereby notified that any change
to the facility could affect safety, competition activities or presentation of
the Event. Therefore, it is the responsibility of Organizer/Promoter to inform
CART of any proposed modifications to the facility including but not limited to
the race track and surrounding area and any structure used by CART during the
Event.
12
37
REGULATIONS FOR INTERNATIONAL AIR FREIGHT MOVEMENT FOR CART
-----------------------------------------------------------
CHAMPIONSHIP RACES
------------------
INTRODUCTION:
-------------
The air freight movement of the entire CART community to International Overseas
races is an extremely complicated logistical and legal exercise. The combined
movement operation is a multi-million dollar operation. The financial risks to
the Promoters alone measure in the tens of millions of dollars.
Further, movement of this amount of airfreight across international boundaries
would ordinarily be impossible in the time frames required. It is only through
the cooperation of several U.S. and host nation governmental agencies that we
are able to make this movement at all.
The cooperation of all parties, in both the spirit and the words of these
regulations are essential. A lack of cooperation from any individual can put the
entire operation in jeopardy.
All participants are reminded that these movements are considered as part of the
competition that they are a part of, and as such are subject to the provisions
of the CART rule book. Participants should particularly be aware that they are
required to follow the instructions of the CART officials.
1. BASICS
------
A. The Promoter for the _______________________at___________________
Mr. ▇▇▇▇ ▇▇▇
General Manger / Motorsports
XYZ Racetrack
ABC Street, DEF Town
Telephone: ▇▇▇-▇▇▇-▇▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇▇▇
E-mail:
B. The authorized Unites States representative for the ________________is:
Mr. ▇▇▇▇ ▇▇▇ Jr.
America's Representative
XYZ Racetrack
▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
Telephone: ▇▇▇-▇▇▇-▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
E-mail:
PAGE 1
38
XYZ International Air Service is the designated freight forwarder:
CONTACTS:
---------
▇▇▇▇ ▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇▇,
▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
Telephone: ▇▇▇-▇▇▇-▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
E-mail:
C. The basic freight movement is governed by contract between Championship
Auto Racing Teams, Inc. (hereinafter "CART") and the Promoters, acting
as the "Headquarters" for the teams, for the benefit of all concerned.
Nothing in these regulations shall be construed to modify the
transportation provisions of such contract, or to shift any risk with
respect to any undertaking as provided in such contracts. The Promoters
are dedicated to resolving any disputes amicably, with the assistance
of CART if necessary. The cooperation of shippers is expected and
appreciated.
D. The standard currency for CART freight movements shall be the U.S.
Dollar.
E. All freight will be measured in pound weight or its volume may be
translated into pound weight. (See 3. Weights and Volumes)
F. MAX SHIPPING WHEELBASE FOR RACE CARS BEING SHIPPED WILL NOT BE GREATER
THAN 126".
2. CLASSES OF SHIPPER
------------------
There are five classes of shipper on the CART international freight movements.
A. ENTRANTS. An entrant is a team with a car with an assigned driver. This
definition is further spelled out in the CART regulations, CART
franchise agreements and the contracts between CART and the Promoters.
The number of entrants accepted for freight movement is limited by
contract between CART and the Promoters.
B. CART. This is the freight used by CART to fulfill its obligations as
sanctioning body of the races.
C. CHASSIS, ENGINE AND TIRE MANUFACTURERS. These are the registered
manufacturers of CART chassis, engines and tires for the current
season. These companies receive an allotment of weight from the
Promoters in the interests of the teams, in order to transport spare
parts for the teams. Teams are
PAGE 2
39
encouraged to check with their manufacturers to see what parts are
being taken to each venue, to minimize the need for duplicates.
D. OTHER MANUFACTURERS. These are manufacturers related to CART, or
official sponsors of CART who may ship parts and other non-commercial
goods on a space available basis.
E. PROMOTER'S OPTION. This is freight shipped on a space available basis
by the Promoter, of items used to support the race. Only items, which
shall be returned to the United States, or expendable items, may be
shipped this way.
3. WEIGHTS AND VOLUMES
-------------------
The capacities of the aircraft that are used in the freight movement are limited
in both volume and weight. The maximum takeoff weights are also limited by the
length of the legs of the flights. It is therefore necessary to limit the amount
of cargo shipped by each shipper.
A. All freight shall be weighed at the port of embarkation and the weight
of each piece shall be recorded. The weight shall include any piece
that shall be placed on board the aircraft. The shipper may be present
at the weighing of the freight. If the shipper disagrees with the
weight of an item, they may ask that it is re-weighed and where
possible other scales may be used. Once agreement has been reached on
the weight of the freight the shipper shall sign the paper recording
the weight of their freight and thereafter the weight of the shipment
may not be disputed. If the shipper chooses not to be present at the
weighing of the freight, that will be indicated on the form, a witness
shall counter sign and the weight recorded at that time may not be
disputed.
B. Any item that appears, in the opinion of CART, to be of unusually low
density may be measured and its volume transferred to weight using the
following formula: 200 cu. Inches = 1 pound(1). This number shall be
rounded down by eliminating decimals. Therefore, for example, an item
weighing 50 lb., but which measures 48"x48"x36" may be charged against
the shipper allowance at 414 pounds.
C. The higher of the two weights, either by the above density formula, or
by straight weight shall be used as the weight of an item to be
shipped.
D. This formula will not apply to the shipment of racing tires which shall
be shipped only by mutual agreement of the parties.
E. It shall be assumed that the shipper's combined freight weight shall be
the same returning to the United States that it was departing.
F. No single item shipped may weigh more than 2000lbs. (except car racks.)
G. No item (except cars) may be longer than 122 inches in any dimension.
No item exceeding 93 inches in any dimension may be wider than 93
inches in any other dimension. The maximum dimensions of any item in
all directions are 122" long
--------
(1) This number is arrived at by using the standard dimensions of a lower deck
747 pallet (122" x 93" x 64" = 726,144 cu in) and dividing by the standard weigh
of a lower deck 747 pallet (6000 lb.). This gives 121 cu in = 1 pound. This
would be the standard density on a pallet. We then gave the teams the benefit of
a wide margin of variance to come to the number 200 cu in per pound.
PAGE 3
40
x 93" wide x 64" high. Any item higher than this must be able to be
shipped on its side in such a manner as to fit these dimensions.
H. The sole exception to (F) above is that each entrant shall be permitted
one TIMING STAND which, in accordance with CART regulations, may be up
to 72" high. All other dimension limits apply. NB. (See 8. Presentation
of General Freight for further details about Timing Stands).
I. Unique items, which are outside the above dimensions, may be shipped by
special prior arrangement with CART. These items will not be included
within a shippers weight allowance and will be charged at 150% of the
standard shipping fee. Items for which no prior arrangement has been
made are liable to be refused for shipment.
4. WEIGHT ALLOWANCES PER ENTRANT
-----------------------------
A. Each entrant is allowed to ship 8350 pounds of general freight plus two
rolling chassis (including one front and one rear wing element per
chassis), free of charge.
B. In the case of back to back overseas international events, that weight
allowance shall be 10000 pounds (ten thousand.)
C. Any entrant that elects to ship only one chassis will receive a bonus
of one thousand five hundred pounds (1500lbs) towards their basic
allowance.
D. Any amount over the basic and bonus allowance shall be shipped at a
cost of $4.65 per pound.
E. Teams are HIGHLY ENCOURAGED to take the minimum amount of hazardous
materials possible. Teams are reminded that they are responsible for
the packing and documentation charges.
F. The Promoter is not responsible for shipping any freight over the basic
and bonus allowances. Additional freight shall be shipped ON A SPACE
AVAILABLE BASIS. Teams are encouraged to communicate in advance with
CART the total freight that they expect to ship.
5. WEIGHT ALLOWANCES, CHASSIS, ENGINE AND TIRE MANUFACTURERS
----------------------------------------------------------
A. Each chassis manufacturer shall receive a weight allowance of three
hundred pounds (300lbs) per entrant that uses their chassis up to a
maximum of ten (10) entrants. For example, if Swift cars have four
entrants using Swift chassis they will receive an allowance of 1200
pounds of freight.
B. Each engine manufacturer shall receive a basic weight allowance of 1500
(one thousand five hundred) pounds. Additionally, each engine
manufacturer shall receive an allowance of 200 pounds per entrant using
that manufacturers engines, up to a maximum of ten entrants. (ie no
manufacturers' total allotment shall be above 3500 pounds.)
C. Each tire manufacturer in the series shall receive a basic weight
allotment of 3000 pounds. Additionally, on a space available basis,
space may be provided for tires at a rate of $50 per tire.
D. The Promoter is not responsible for shipping any freight over the basic
allowance. Additional freight shall be shipped on a space available
basis.
PAGE 4
41
E. Any amount over the basic allowance shall be shipped at a cost of $4.65
per pound.
D. A manufacturer may elect (in writing, in advance to the Promoter and
CART) to assign their weight allowance to one of the teams that they
support. For example, Lola Cars International may elect transfer their
weight allowance to ▇▇▇▇▇▇ ▇▇▇▇ Racing.
6. WEIGHT ALLOWANCES, OTHER SHIPPERS
---------------------------------
A. There are no weight allowances for other shippers. Other shipments may
only be made by prior arrangement, in writing, with the Promoter and
CART.
B. All freight in this category shall be shipped at a rate of $4.65 per
pound ON A SPACE VIABLE BIAS.
C. Hazardous materials shipped in this category shall be shipped at a rate
of $9.30 per pound, in addition to the packing and document charges
(see below).
7. PACKAGING OF CARS
-----------------
A. MAX SHIPPING WHEELBASE FOR RACE CARS BEING SHIPPED ARE NOT TO EXCEED
126".
B. All cars must be presented with a full, fitted protective cover made of
a durable canvas type material. Only the sling points and wheels may be
exposed. There must be access to the steering wheel. Each car must have
its steering wheel attached.
C. THE SHIPPER ACCEPTS FULL AND SOLE RESPONSIBILITY FOR ANY DAMAGE CAUSED
TO THEIR CAR, IN ANY MANNER, IF IT IS SHIPPED WITHOUT AN APPROPRIATE
PROTECTIVE COVER.
D. The appropriateness of any cover shall be determined by representatives
of CART and the Promoter. Plastic wrapping material shall be presumed
to be not appropriate.
E. Because slick tires are prone to nicks, cuts and are prone to
deflation, cars must be presented on rain tires. These tires are to be
considered for transportation only, for the protection of the car and
Promoter shall not be responsible for any damage to tires. Tires must
be in good condition and fully inflated when presented. Deflated tires
present a safety hazard in flight as well as to the safety of the car.
F. THE SHIPPER ACCEPTS FULL AND SOLE RESPONSIBILITY FOR ANY DAMAGE CAUSED
TO THEIR CAR, IN ANY MANNER, IF IT IS SHIPPED WITHOUT RAIN TIRES.
G. Cars must be drained completely of fuel.
H. Cars must be drained as completely as possible of all other fluids.
I. The Promoter may refuse transportation of any car that is, in the
opinion of the CART representative and the Promoter, inappropriately
presented.
PAGE 5
42
8. PRESENTATION OF GENERAL FREIGHT
-------------------------------
Most of the damage to freight is caused by poor packaging, and could be
prevented by better care and proper packaging.
A. All items shipped must be squared to the maximum extent possible,
without protrusions. The exception to this is the wheel packaging.
B. All freight must be capable of stacking.
C. No item shipped will have wheels or casters on it. Timing stands etc.
must be shipped without wheels, or with wheels that can be retracted,
removed or covered in such a manner that the covers form a skid.
D. ITEMS WITH EXPOSED WHEELS OR CASTERS WILL BE REFUSED FOR SHIPMENT.
E. The Promoter is not responsible for nicks, scratches and other damage
caused to the outer cover by normal wear and handling. Cloth type
coverings do not constitute protective packaging of general freight.
F. Timing Stands are subject to stacking, and must be properly protected.
We recommend a tubular external frame be installed for protection.
Because of the high weight of Timing Stands, we recommend that skids
are installed and the bottoms are reinforced to protect them when using
forklifts. (See D.)
G. Boxes and shipping containers should meet normal Airline Transportation
Association (ATA) standards, for packaging and freight shipment. Except
in very limited circumstances, cardboard boxes will not be considered
acceptable packaging.
H. All containers should be water-resistant. Shippers must recognize that
all the freight is liable to be loaded, off-loaded, and transported by
truck, in rain or snow. The Promoter shall not be liable for any damage
caused by weather.
I. The weight of an item should be distributed over the greatest possible
area. This is to protect other freight and to comply with airline
regulations. As a guide, no item when resting on its shipping base
should exert a pressure greater than 10 pounds per square inch.
J. Containers will be loaded and unloaded using a fork lift truck. The
bottom of containers must be reinforced for this purpose.
K. All containers must contain appropriate padding and cushioning for
their contents, considering that they will be transported over rough
roads. The Promoter shall not be responsible for damage that could have
been prevented by proper padding or cushioning.
L. All items must be clearly marked with the shipper's name on each side.
In addition, must indicate an item number for customs documentation.
All items should be numbered sequentially (i.e. Box 26 of 50) and
clearly marked by shipper.
M. Containers that need to be shipped in one particular direction must
have arrows clearly marking which direction is considered "up". These
markings must be visible from each direction.
N. Containers containing liquids of any type must indicate this clearly on
the outside of the box. All containers must be spill-proof and tight
and must be capable of withstanding the normal changes of pressure and
temperature of airfreight travel.
O. Any containers that in the opinion of the Promoter and CART require
special handling (for example top stacking) shall not be included in
the shipper's allowance and shall be charged at 150% of the basic fee
(i.e. $6.97 per pound).
PAGE 6
43
P. The Promoter may refuse transportation of any freight that is, in the
opinion of the CART representative and the Promoter, inappropriately
presented, or the shipper may be instructed to re-package the freight
or the shipper may be charged the special handling fee.
9. HAZARDOUS MATERIALS
-------------------
A. Hazardous materials must be packed and documented by the hazardous
materials specialists designated by the Promoter. The designated
hazardous materials specialists for ____________________________shall
be ________________________. Contact _____________________________
B. Packaging and documentation of hazardous materials will be at the
shipper's expense.
C. Certain classes of materials are prohibited. Shippers must consult the
hazardous materials specialists well in advance for further
information. Shippers must contact the Promoter for any variance from
this list. Variances shall be made in consultation with the CART
logistics office and the hazardous materials specialists.
D. The following items are commonly used by motor racing teams and are
amongst those considered to be hazardous cargo and should be avoided:
Acetone / aerosols / fiberglass repair kits / acid batteries /
methylated spirits / brake cleaner / 3M structural adhesives /
white spirit / liquid polish / isopan kits / glass cleaner /
1,1,1, trichloroethylene / special araldite adhesives / redux
adhesives / paints, paint thinners & adhesives / fuel / fire
extinguishers / WD 40 / S.P. resin & hardener kits / petrol
tank repair kits / seat foam part A&B trichloroethylene.
This is not a complete list. Shippers must consult the hazardous
materials specialists well in advance for further information.
10. CUSTOMS
-------
GENERAL
-------
A. The ultimate authority to export/import goods into any country is the
responsibility of the individual inspector at each port. This authority
may supersede the regulations and directives herein and may supersede
any directive issued by the government as it pertains to the special
status of an event. Therefore, it is necessary that all persons present
themselves, their cargo and their documentation in an appropriate and
orderly manner.
B. Inappropriate items (any contraband, controlled substances, firearms,
agricultural products, and food stuffs or alcoholic beverages) or any
items in excess of the goods required for the event must not be
transported across international borders.
PAGE 7
44
C. FAILURE TO FOLLOW PROCEDURES, MAKING FALSE DECLARATIONS AND THE
TRANSPORTATION OF INAPPROPRIATE ITEMS IS ILLEGAL. VIOLATORS ARE SUBJECT
TO THE CONSEQUENCES PROVIDED FOR UNDER THE REGULATIONS, LAWS AND
STATUTES OF THE JURISDICTIONS INVOLVED AND ARE SOLELY RESPONSIBLE FOR
THOSE CONSEQUENCES. FURTHER VIOLATORS MAY BE SUBJECT TO PENALTIES UNDER
THE CART RULE BOOK FOR ACTIONS DETRIMENTAL TO THE CORPORTION.
D. All items are being shipped temporarily. Everything will be re-imported
into the United States regardless of condition.
E. ALL CONTAINERS MUST CONTAIN EXACTLY THE SAME CONTENTS ON THE RETURN
FLIGHTS AS THEY DID ON THE departure.
F. The shipper shall bear full and sole responsibility for the cost of
delays, fines, duties or any other costs that may be caused by
in-accurate paper work by the shipper. All shippers are hereby warned
that their freight is liable to impoundment or confiscation, or may be
liable for duties if their paperwork is inaccurate. The Promoter shall
not be responsible for any such action in cases where the shipper
provided inaccurate paperwork.
ENGINES
-------
Engines are an extremely sensitive issue with Customs in every country. All
engines must have their serial numbers stamped into the metal area of the block,
in an easily accessible and highly visible area. The Team or engine supplier
must attach a conspicuous tag with the serial number in the general area that
the serial number is stamped. This must be the case on both the in-bound and
out-bound flights.
DOCUMENTATION
-------------
A. All documentation must be presented typed. CART and the Promoters have
developed computer-based versions of all documentation required
(INCLUDING THE U.S. CUSTOMS FORM 4455 IN ACROBAT PDF FORMAT). All
shippers must use these versions of these documents. They are provided
along with blank documents in this manual. Additional copies may be
obtained from the CART logistics department. All final versions of the
documents must be presented to CART at departure prior to export. These
documents are to be presented in this order.
1. United States Customs Form 4455 (Appendix A)
2. Manifest (Appendix B)
3. Temporary export letter (Appendix C)
4. Commercial Invoice (Appendix D)
5. Special power of attorney (Appendix E)
6. Documentation supporting the original importation and payment of
duty for each car that was not manufactured in the U.S. and a EPA
Vehicle Exemption Certificate is required and must accompany each
manifest.
7. Property Loss Notice (Appendix F)
PAGE 8
45
B. Shippers must complete a U.S. customs Form 4455, Certificate of
Registration, indicating each major item by serial number (chassis and
engines), the number of other pieces being shipped and the total counts
and value. (Examples are provided in Appendix A).
C. Shippers must complete an itemized manifest. This manifest MUST be
completed using the forms provided on the Document Disk. Microsoft
Excel 4.0 for WIN 3.1/WIN 3.11 or MS Excel 7.0 for WIN 95 is required
to run this form. This computerized version of the manifest has been
developed by CART and the Promoters to provide uniform reporting to
Customs and is easy to operate. The shipper is responsible for making
sure that the manifest is accurate, that all the items in each box are
there, and that all the items in each box are recorded on the manifest.
(Examples are provided in Appendix B). ONE (1) ORIGINAL, SIX (6)
PRINTED COPIES OF THE MANIFEST WITH THE COMPLETED DOCUMENTATION ON THE
ORIGINAL DISKETTE PROVIDED BY CART.
D. Shippers must provide ONE (1) ORIGINAL AND SIX (6) COPIES of a cover
letter on company letterhead briefly outlining the reason for the
temporary export, for each freight movement. The text for these
documents is on the document disk. (Examples are provided in Appendix
C) ONE (1) ORIGINAL, SIX (6) PRINTED COPIES OF THE MANIFEST WITH THE
COMPLETED DOCUMENTATION ON THE ORIGINAL DISKETTE PROVIDED BY CART.
A COMPLETED COPY OF THE FOLLOWING MUST BE PROVIDED ON THE DISKETTE
PROVIDED BY CART:
1. UNITED STATES CUSTOMS FORM 4455 (APPENDIX A)
2. MANIFEST (APPENDIX B)
3. TEMPORARY EXPORT LETTER (APPENDIX C)
4. COMMERCIAL INVOICE (APPENDIX D)
5. SPECIAL POWER OF ATTORNEY (APPENDIX E)
6. DOCUMENTATION SUPPORTING THE ORIGINAL IMPORTATION AND PAYMENT OF
DUTY FOR EACH CAR THAT WAS NOT MANUFACTURED IN THE U.S. AND A EPA
VEHICLE EXEMPTION CERTIFICATE IS REQUIRED AND MUST ACCOMPANY EACH
MANIFEST.
7. PROPERTY LOSS NOTICE (APPENDIX F)
ALONG WITH YOUR DISKETTE, PLEASE PROVIDE TWO (2) PIECES OF BLANK
COMPANY LETTERHEAD.
E. Shippers must complete and execute the Special Power of Attorney to the
Vice President of Logistics for CART. This must be executed by an
officer of the corporation, witnessed and notarized. This document is
provided on the document disk (Examples are provided in Appendix E)
this document is required by Customs.
PAGE 9
46
11. FACILITIES ACCESS
-----------------
A. Prior to the event during the load-up, airlift, cargo transfer and
breakdown of equipment, and again after the event, airport facilities,
pit lane and garage areas are considered restricted customs areas. All
shippers must be aware that access will be strictly limited and that
appropriate behavior is expected at all times. Shippers may not have
access to their cargo at all times. Until the cargo has been released
by customs in each jurisdiction, shippers should request access through
the representatives of CART and the Promoters. Shippers must carry
their CART credential for verification.
B. During the cargo operation, access to cargo even when not under the
control of customs will be limited.
12. GIVEAWAYS, RESALE OR COMMERICAL GOODS.
--------------------------------------
Shippers MAY NOT ship items for Giveaways, Resale or Commercial goods. Any
waiver from this requires special separate arrangements and must be arranged in
writing well in advance with the Promoter and CART.
13. INSURANCE OF EQUIPMENT
----------------------
A. The Promoter is responsible for providing insurance against loss or
damage of the equipment owned by those shippers identified in clause 2
of these regulations. This insurance covers the equipment at times when
the equipment is under the care, custody and control of the Promoter.
This commences at the point at which the equipment is accepted for
shipment by the Promoter and ends at the time when the equipment is
delivered to the event site. It recommences at the point where the
equipment is accepted by the Promoter for shipment to the United States
(usually at the garage) and ends when the equipment it returned to the
shipper.
B. The Promoter is only responsible for insuring equipment at the time of
the main shipment. Equipment shipped by other means, at other times, is
shipped at the shippers own risk, unless a prior arrangement is made in
writing with the Promoter.
C. All claims for damages must be made in writing to the Promoter within
seven calendar days following the final shipment of the equipment to
the United States. No further claims may be considered. A copy of the
initial claim form is attached as (Appendix F). Shippers are advised to
make claims at the earliest possible time. Initial claims forms may be
faxed to the Promoters, or may be mailed, so long as they are
postmarked within the seven-day limit.
D. The shipper must be as specific as possible in claiming damages and
pictures of claimed damage should be included.
E. No claims may be made on items that have been impounded or delayed in
shipment by the customs service of any country in cases where the delay
is attributable to errors in the paperwork of the shipper.
F. The Promoter will not accept either direct or consequential liability
for damages for individual items presented for shipping that do not
meet the size and weight
PAGE 10
47
packaging limits specified above, or which do not meet the packaging
standards set forth above.
G. The Promoter is responsible for replacement costs only, and is not
responsible for any consequential liability or damages to the shipper.
H. There is a US$500 (five hundred dollar) deductible. No shipper may
claim for any loss of damages under this limit. By using the freight
movement, Shippers indicate that they expressly understand and accept
this limitation.
14. PAYMENT PROCEDURES
------------------
A. Payment is due for all bills "net 30" of the billing date. Any claims
for adjustments or corrections of bills must be made within those
thirty days. Bills are considered "past due" thirty days after the
billing date, unless claims for adjustments are made within the thirty
days, the due date will then be adjusted to reflect thirty days from
the resolution of the claim.
B. Any amount considered past due would be forwarded to CART for
assistance in resolution.
C. The Promoter reserves the right to require a deposit in advance from
any shipper who ran a past due balance the previous year. The deposit
may be up to 100% of the past due balance of the previous year. The
Promoter reserves the right to refuse shipment of any freight over the
shippers allowance if the shipper refuses to provide the required
deposit. The Promoter shall inform the shipper of any required deposit
thirty (30) days prior to the initial shipment of the freight.
15. WAIVERS
-------
A. All waivers to any part these regulations must be in writing and signed
by the Promoter and CART prior to shipment.
B. No verbal representations, by any party shall bind the Promoter, CART
or the airline. This includes any verbal representation that may be
made by the Promoter, their employees or employees of CART.
PAGE 11
48
SCHEDULE "B"
INSURANCE REQUIREMENTS
----------------------
In an effort to protect the interest of track owners, Organizers/Promoters,
sponsors, CART, its Members and participants, CART has established certain
minimum criteria for insurance coverage which must be in effect for all CART
Events.
The insurance requirements for CART events consist of the following areas of
insurance coverage:
1. Spectator Liability Insurance;
2. Participant Legal Liability Insurance; and
3. Participant Accident Insurance.
The minimum specifications and requirements for acceptable coverage are:
$20,000,000 LIABILITY INSURANCE (coverage must be primary)
1. POLICY FORM
-----------
The policy must be a Comprehensive General Liability form and may be either a
manuscript Automobile Racing policy or a Commercial General Liability policy
with endorsements that provide the amendments required to cover automobile
racing events.
Coverage provided must include, but shall not be limited to:
A. Spectator/Public Bodily Injury Liability.
B. Participant Legal Liability - that is, coverage for bodily
injury claims from "participants" and must include participant
to participant liability.
C. Property Damage Liability
1. Including participants' property except when in
restricted areas.
2. No more than a Fifty Dollar ($50.00) deductible.
D. Refreshments/Products Liability including Concession Hard
Goods and Host Liquor Liability.
E. Personal Injury Liability, including false arrest, detention,
imprisonment or malicious prosecution, libel and slander;
wrongful entry or eviction.
F. Mobile Equipment Liability.
49
G. Primary Medical Malpractice Liability covering all medical
personnel - employed or volunteer.
H. Non-owned Aircraft Liability.
I. Off Premises Sign Liability.
J. Official Vehicle Physical Damage - Two Hundred Fifty ($250.00)
Dollar maximum deductible. An official vehicle is a vehicle on
the racetrack premises which is allowed access into
"restricted" areas. This includes but is not limited to an
ambulance, fire truck, tow truck, or pace car.
K. Contractual Liability.
2. MINIMUM LIMITS OF COVERAGE
--------------------------
CART reserves the right to change insurance limits as long as ninety (90) days
notice is given to Organizer/Promoter.
A. 2001 Event - $20 million combined single limits per occurrence
for Bodily Injury and Property Damage with no aggregate limit.
B. 2001 Event - $10 million minimum for Participant Legal
Liability. Subsequent Events subject to 50% of limits in place
in paragraph 2A.
C. 2001 Event - $1 million Medical Malpractice Liability with $1
million aggregate per incident. Coverage to include Medical
Professionals. (See paragraph 1 [G]).
3. NAMED INSUREDS
--------------
Must include:
A. CART, Inc., and Championship Auto Racing Teams, Inc. and their
subsidiaries, officers, team owners, directors and employees;
Federal Express Corporation; other co-Series sponsors.
B. CART reserves the right to add, with written notification,
additional named insureds provided however, that such notice
be given no later than sixty (60) days prior to the Event.
2
50
4. PERSONS INSURED
---------------
Must include:
All participants, entrants, sponsors for this Competition, Event or the
Series of which the Competition is a part, or of a Competition vehicle,
and CART Members. The definition of participants must include drivers,
mechanics, pitmen, officials of the race, and those assisting the
officials, event staff, announcers, emergency and safety crews and
security personnel and all other persons allowed access to restricted
areas. Such definition also applies to CART and support series events.
5. WAIVER AND RELEASE FROM LIABILITY
---------------------------------
The insurance policy must require the utilization of a system at all CART Events
which secures properly executed and signed "Waiver and Release from Liability"
forms from all participants. The procedure for obtaining such executed waivers
from CART participants shall be determined by CART.
6. GENERAL SPECIFICATIONS
----------------------
A. The insurer must be admitted or approved to write insurance in
the state, province and country where the insured track is
located. The broker or agent must be licensed to transact
business in the state, province and country where the track is
located. It is Organizer/Promoter's responsibility to inform
all participants of all coverages and conditions available
throughout the Event.
B. The insurer must have a minimum of a "Best A rating", and the
name of the insurer must be supplied to CART for the purposes
of confirmation.
C. The insurer must formally agree to send duplicate notice of
cancellation to CART in the event of cancellation a minimum of
thirty (30) days in advance of the cancellation. The reason
for the cancellation must be included with this notification.
The insurer must also formally agree to immediately notify
CART of each instance of the insured's failure to remit proper
premium or other required payments.
D. The agent or broker must submit a narrative explanation of
systems, procedures and authority for adjusting and paying
claims.
7. PROCEDURES FOR OBTAINING APPROVAL OF AND UTILIZING INSURANCE COVERAGE
---------------------------------------------------------------------
A. Any request or submission for approval of insurance coverage
not meeting the minimum specifications and requirements or
procedures will not be accepted.
3
51
B. To obtain approval for sources of insurance,
Organizer/Promoter or its insurance broker must submit a
certified true specimen copy of the proposed policy forms to
CART at least ninety (90) days prior to the first day of the
Event.
C. CART will notify the party submitting the request in writing
of the acceptance or rejection of insurance submissions within
fifteen (15) days of receipt of the submission. Only formal
written approval of the acceptance of insurance coverage by
CART shall be considered valid.
D. Upon acceptance, Organizer/Promoter must provide CART a
certified true copy of the actual policy of insurance issued
to track operators or Organizer/Promoter at the time of
issuance and no later than thirty (30) days prior to the first
day of the Event.
E. Should Organizer/Promoter fail to comply with the above
requirements, CART shall have the right to purchase the
insurance and obtain reimbursement from Organizer/Promoter.
8. PARTICIPANT ACCIDENT INSURANCE FOR CART PARTICIPANTS
----------------------------------------------------
Organizer/Promoter shall reimburse CART for the cost of participant accident
disability, medical and life insurance which minimum coverages for 2000 are as
follows:
Accidental Death and Dismemberment $ 50,000.00
Primary Accident Medical $150,000.00
Excess Major Medical - Champ Car drivers $850,000
All other participants $350,000.00
Weekly Disability (to 104 weeks) $ 250.00
Monthly Disability (to 48 months) $ 300.00
9. PARTICIPANT ACCIDENT INSURANCE FOR NON-CART PARTICIPANTS
--------------------------------------------------------
Organizer/Promoter shall provide participant accident insurance for all non-CART
participants at the Event with minimum limits of:
Accidental Death and Dismemberment $25,000.00
Medical $50,000.00
Weekly Indemnity (to 104 weeks) $ 100.00
4
52
SCHEDULE "C"
UNIFIED CREDENTIAL SYSTEM
-------------------------
AND FACILITY ACCESS PROVISIONS
------------------------------
CART SEASON CREDENTIALS (PLASTIC PICTURE IDENTIFICATION)
--------------------------------------------------------
Picture identification cards will be issued to CART participants as provided for
in this Agreement. Persons issued this credential may only use this credential
as expressly allowed for by the CART Rule Book, and only applies as to their
need or function. Any change in costs agreed to by the Promoters' Association
and CART will supersede the costs included in this Schedule "C".
A. TEAMS
-----
Each CART Owner Membership is entitled to a maximum of fifty (50) CART picture
I.D. license/credentials upon acceptance of application and payment of fees due
CART. Additional license/credentials may be purchased consistent with the
CART/Promoter Credential and Motorhome Policy, attached as Exhibit 1 to this
Schedule C. Revenues derived from such purchases less $25.00 per credential will
be divided equally among all CART Organizer/Promoters.
These license/credentials are to be issued to team members, i.e., owner, team
manager, chief mechanic, crew members, designated team and/or sponsor public
relations representative and any other associates the owner desires within the
allotted maximum number. This credential will permit access to the facility and
restricted areas including the pit area at all times during any CART Event. At
specified Events, a limited number of special credentials will be issued to
allow only necessary and appropriate personnel access to the pit area thirty
(30) minutes prior to and during the CART race.
B. DRIVERS
-------
Each driver will be issued a permanent CART picture license/credential. An
additional picture license/credential will be issued to the driver's spouse or
companion. Both credentials will permit access to the facility and restricted
areas including the pit area at all times during any CART Event. At specified
Events, a limited number of special credentials will be issued to allow only
necessary and appropriate personnel access to the pit area thirty (30) minutes
prior to and during the CART race.
C. OFFICIALS
---------
Each CART official will be issued a permanent CART picture I.D.
license/credential. This credential will permit access to the facility and
restricted areas including the pit area at all times during any CART Event. At
specified Events, a limited number of special credentials will be issued to
allow
53
only necessary and appropriate personnel access to the pit area thirty (30)
minutes prior to and during the CART race.
D. SUPPLIERS AND AWARD PROVIDERS
-----------------------------
A reasonable number of suppliers and award providers will be issued credentials
as determined by CART. cart shall provide the company name and role for each of
the individuals to whom credentials are being provided. These credentials will
permit access to the facility and restricted areas including the pit area at all
times during any CART Event. At specified Events, a limited number of special
credentials will be issued to allow only necessary and appropriate personnel
access to the pit area thirty (30) minutes prior to and during the CART race.
Each CART authorized supplier may request annual credentials for any number of
persons provided that these persons are bona fide members of the supplier's
support team needed at the track. Five (5) such credentials will be issued at no
charge. For each cart team supplied, one (1) additional credential will be
provided. All credentials issued over and above the allotted number will be
charged at a price of $500.00 per credential. Revenues derived from such
purchases less $10.00 per credential will be divided equally among all CART
Organizer/Promoters. CART has the right to review all requests and, if necessary
to ask for a clarification of the role to be performed by each person for whom a
credential is requested. If a supplier acquires a credential for a third party
under this system (i.e. for a person that is not a bona fide member of the
supplier's support team needed at the track), all credential privileges will be
revoked.
Each CART authorized award provider shall be entitled to a maximum of five (5)
credentials at no charge. Additional credentials may be purchased at a cost of
$100.00 each per season. Revenues derived from such purchases less $10.00 per
credential will be divided equally among all CART Organizer/Promoters.
E. MEDIA
-----
CART will issue a limited number of credentials to nationally and
internationally recognized journalists and photographers covering the majority
of Series Events on assignment for recognized media. They will clearly be marked
"MEDIA" and "MEDIA PHOTO" respectively. All media and photo credentials will
permit access to the facility and restricted areas including the pit area and
media center at all times during any CART Event. At specified Events, a limited
number of special credentials will be issued to allow only necessary and
appropriate personnel access to the pit area thirty (30) minutes prior to and
during the CART race.
F. TELEVISION PRODUCTION
---------------------
Television talent, key production staff and season-long television production
crew members are credentialed and marked "Network TV". All "Network TV"
credentials will permit free and unrestricted access to the facility and all
associated areas including the pit area and media center at all times during
2
54
any CART event. Individuals accredited by this CART Season Credential marked
"Network TV" should receive access to the same areas as any Event credential
issued by CART or the promoter to the television production crews. At specified
Events, a limited number of special credentials will be issued to allow only
necessary and appropriate personnel access to the pit area thirty (30) minutes
prior to and during the CART race.
G. SPONSORS
--------
A reasonable number of CART sponsors will be issued credentials as determined by
CART. cart shall provide the name, company name and role for each of the
individuals to whom credentials are being provided. These credentials will
permit access to the facility and restricted areas including the pit area at all
times during any CART Event. At specified Events, a limited number of special
credentials will be issued to allow only necessary and appropriate personnel
access to the pit area thirty (30) minutes prior to and during the CART race.
Each CART sponsor shall be entitled to a maximum of five (5) credentials at no
charge. Additional credentials may be purchased at a cost of $500.00 each per
season. Revenues derived from such purchase less $50.00 per credential will be
divided equally among all CART Organizer/Promoters.
EVENT CREDENTIALS (PROVIDED BY THE ORGANIZER/PROMOTER)
------------------------------------------------------
A. ISSUED BY CART:
---------------
1. ASSISTANTS
----------
Organizer/Promoter shall make Event credentials available to CART for
those persons assisting CART Officials. These credentials shall be the
same type of credentials as those issued by Organizer/Promoter to
others assisting in the production of the Event and will permit access
to the facility and restricted areas including the pit areas at all
times during any CART Event. At specified events, a limited number of
special credentials will be issued to allow only necessary and
appropriate personnel access to the pit area thirty (30) minutes prior
to and during the CART race.
2. SPONSORS
--------
For each Owner Membership accepted by CART the entrant may be entitled
to a maximum of twenty (20) credentials per accepted membership for
team sponsors. These credentials will permit access to the facility and
restricted areas during CART activities. Access to the pit area will be
terminated thirty (30) minutes prior to the start of and during the
CART race. Each credential purchased hereunder shall apply to all CART
sanctioned events during the season and shall be purchased at a cost of
$50.00 for each circuit on the schedule. Revenues derived from such
purchases will be divided equally among all CART Organizer/Promoters.
3
55
3. ADDITIONAL CREDENTIALS, PASSES, TICKETS AND PARKING
---------------------------------------------------
Organizer/Promoter will provide CART with additional credentials,
passes, tickets and parking to be utilized as stated below for
distribution at the discretion of CART.
(a) CREDENTIALS AND PASSES
General - Up to three Hundred (300) credentials for distribution by
CART; Access to the pit area will be terminated thirty (30) minutes
prior to the start of and during the CART race; cart shall provide
Organizer/Promoter with a detailed list of credential recipients within
14 days following the Event.
Drivers - Four (4) credentials to each participating CART driver;
Broadcast Partners (U.S. and International Television and CART Radio) -
Organizer/Promoter will provide all broadcast partners with
specifically designated all access "Network TV" credentials, which
accord production personnel free and unrestricted access to the site of
the event and associated areas otherwise restricted to the general
public. These areas are to include the media center, pit lane, paddock,
television compound, camera locations, announce booths, hospitality
areas, and trackside access for the sole purpose of producing
television coverage of the Event. This "Network TV" credential should
be restricted for distribution to and use by authorized workers only
under the direction of CART. At specified Events, a limited number of
special credentials will be issued to allow only necessary and
appropriate personnel access to the pit area thirty (30) minutes prior
to and during the CART race.
(b) TICKETS
General - Seventy-Five (75) tickets (deluxe grand stand seating) for
use by CART ; any tickets over the seventy-five (75) shall be purchased
by CART at face value. Tickets shall be provided thirty (30) days prior
to race day.
Television Network -
(c) PARKING
U. S. Television Network - Parking passes shall be provided by
Organizer/Promoter up to a total of (64) sixty-four; Forty (40) should
allow parking adjacent or as close as possible to television compound,
with another twenty (20) providing convenient access to overflow
parking; Four (4) service vehicle passes shall also be provided to
allow delivery and servicing of equipment to all areas of Event. CART
to coordinate; notwithstanding the foregoing requirements of general
application, the parties acknowledge Organizer/Promoter's space
limitations, and such requirements shall be subject to mutual agreement
between Organizer/Promoter and CART for these Events.
4
56
International Television Networks - Parking passes shall be provided by
Organizer/Promoter up to a total of (17) for ESPN International. Ten
(10) should allow parking adjacent or as close as possible to the
television compound with another five (5) providing convenient access
to overflow parking. Two (2) "service" vehicle passes shall also be
provided to allow delivery and servicing of equipment to all areas of
event. Additionally, four (4) parking passes shall be provided for each
other attending international network (excluding ESPN International),
preferably located as conveniently as possible to the television
compound. CART to coordinate.
CART Radio Network - Parking passes shall be provided by
Organizer/Promoter up to a total of (4) four, including three (3)
preferably in a location as close as possible to the radio announce
booth, and one (1) "service" vehicle pass to allow for delivery or
servicing of equipment to all areas of event. CART to coordinate;
Media - At least fifty (50) parking spaces shall be provided by
Organizer/Promoter for media personnel credentialed by CART in the
vicinity of the media center, with convenient overflow parking.
Competitor Hospitality Space - Each entrant (i.e., each separately
entered car/driver combination) shall be afforded, at a discounted
price, an area for hospitality and shall be provided a discounted
hospitality package.
Owners/Drivers/Team Affiliates/CART Officials & Staff -
Organizer/Promoter will designate a parking area which will accommodate
owners, drivers, team affiliates and CART officials and staff. Such
area will be located in close proximity to the paddock and/or garage
area. CART owners and drivers will have access to park in the paddock
or motor coach areas. The number of passes required will be mutually
agreed upon by Organizer/Promoter and CART's Registration Manager.
Suppliers and Manufacturers - Organizer/Promoter will provide parking
and work areas in the paddock for suppliers and manufacturers that
provide entrants with products and services.
B. ISSUED BY PROMOTER:
-------------------
1. RACE PIT CREDENTIALS
--------------------
This Event credential, provided by Organizer/Promoter for issue by the
Organizer/Promoter and CART allows the bearer access to the facility,
paddock/garage and the pit area at any time during a weekend racing
Event. At specified Events, a limited number of special credentials
will be issued to allow only necessary and appropriate personnel access
to the pit area thirty (30) minutes prior to and during the CART race.
Persons with this credential must remain behind the pit wall during on
track activity. The dress code will be in effect during races with
scheduled pit stops.
5
57
2. PRACTICE & QUALIFYING CREDENTIALS
---------------------------------
This Event credential, provided by Organizer/Promoter for issue by
Organizer/Promoter and CART allows the bearer access to the pit area
during all on track activity except races when scheduled pit stops are
a part of the race. Persons with this credential must remain behind the
pit wall during on track activity. The bearer must leave the pit lane
thirty (30) minutes prior to the start of a race with scheduled pit
stops.
3. REDEEMABLE CREDENTIAL
---------------------
This credential provides the bearer general admission and
paddock/garage area access, but does not allow admission into other
restricted areas. To gain access to the pit area, the bearer must
present the credential for validation or reissue and sign the proper
waiver at a redemption center. The redemption center will be operated
by CART or Organizer/Promoter and will be located in the infield,
paddock or other area mutually agreed upon by CART and
Organizer/Promoter. The purpose of this credential is to allow
distribution of credentials to V.I.P.'s that would be issued a pit
access credential prior to the Event. This system will ensure easy
access to the facility and not allow pit access until the proper waiver
is signed.
4. OTHER ACCESS IDENTIFIERS
------------------------
There are other access identifiers that are used in conjunction with
the above three credentials to allow access into specific restricted
areas (trackside access, media center access, etc.) that are provided
by Organizer/Promoter for issue by Organizer/Promoter and CART.
Organizer/Promoter agrees to provide a list to CART, two (2) weeks in
advance of the Event, of all local and regional TV broadcasters
accredited by Organizer/Promoter, for the Media Center area.
C. All credentials shall be plainly marked "RACE PIT" or "PRACTICE & QUALIFYING
PIT", "MEDIA", "MEDIA PHOTO", etc. Terms such as "HOT PITS" or "COLD PITS" are
not acceptable.
RULES
-----
1. Credentials are not transferable.
2. Persons in restricted areas may not enter team areas unless
invited, must obey the instructions given by CART officials
and security personnel in regards to their safety and well
being and may not interfere in any way with the activities of
CART participants or the Event. All credentialed persons are
bound by the rules set forth in the CART Rule Book which
pertain to conduct and safety.
6
58
3. Persons not properly attired must leave the pit area thirty
(30) minutes prior to the scheduled start of the race. Proper
attire is defined as including the following tenets:
A. Shorts are not permitted.
B. Shirts fully covering the shoulders must be
worn at all times.
C. Open-toe shoes are not permitted.
4. Minors, i.e., persons under the age of eighteen (18) or the
legal age of majority in the applicable jurisdiction if
greater than the age of eighteen (18), are not permitted in
the pit area at any time.
IMPLEMENTATION
--------------
1. All security guards, gate guards, pit workers, registrars and
staff members with activities that may be affected by this
policy, will be notified of this policy.
2. All CART Owners, Drivers, Team Managers, Chief Mechanics and
corporate Sponsors will be notified of this policy.
7
59
EXHIBIT 1
A. CREDENTIALS
------------------------------- --------------- -------------- --------------
Number of Credentials 2000 2001 2002
per Entry
------------------------------- --------------- -------------- --------------
------------------------------- --------------- -------------- --------------
0-50 Entitlement Entitlement Entitlement
------------------------------- --------------- -------------- --------------
51-80 $375.00 $395.00 $415.00
------------------------------- --------------- -------------- --------------
81-100 $600.00 $630.00 $660.00
------------------------------- --------------- -------------- --------------
101-130 $1,000.00 $1,050.00 $1,100.00
------------------------------- --------------- -------------- --------------
------------------------------- --------------- -------------- --------------
Pre-Paids $50.00 $50.00 $55.00
------------------------------- --------------- -------------- --------------
8
60
SCHEDULE "D"
CO-SERIES SPONSOR AND OFFICIAL PACE CARS
----------------------------------------
PACE CARS
---------
The pace cars provided by CART or its designee will serve as the Official Pace
Cars at all CART Events sanctioned by CART and shall be the only pace cars
referred to as "Official Pace Cars" in any advertising, publicity, or promotion
of a CART Event by the Organizer/Promoter. Track announcers shall identify such
pace cars during the parade laps and continue to identify the starting pace car
when it starts the race and when it is on the track during caution flag periods.
TICKETS AND CREDENTIALS
-----------------------
Organizer/Promoter shall provide choice seating locations for CART's Official
Pace Car provider and/or other designated co-Series sponsor when it makes ticket
purchases for its customers at the same rates, including discounts, provided any
other corporation or group. Also, Organizer/Promoter shall provide CART's
Official Pace Car provider and/or other designated co-Series sponsor with a
reasonable number of pit passes and parking stickers at no cost.
PROGRAM
-------
Organizer/Promoter shall provide CART's Official Pace Car provider and/or other
designated co-Series sponsor with one (1) full-page, full color ad, for which
color separations shall be provided to Organizer/Promoter, and one (1) full-page
of editorial in the Event program at no cost.
NEWS RELEASES
-------------
CART's Official Pace Car provider and/or other designated co-Series sponsor
shall be identified in all news releases and publicity issued by
Organizer/Promoter.
DISPLAY IN WORK AREA
--------------------
Organizer/Promoter and cart shall mutually agree upon an area for the display
and maintenance of the Official Pace Car fleet to be provided by
Organizer/Promoter.
PACE CAR ON TRACK ACTIVITIES
----------------------------
The Event schedule will include time for pace car on track activities. The
scheduling (placement and allotted time) of these activities will be consistent
with Paragraph 29 of the Organizer/Promoter Agreement and SCHEDULE E.
61
OFFICIAL CARS
-------------
In the event that Organizer/Promoter is able to obtain an official car from a
national automobile manufacturer and/or its local auto dealer, the parties agree
to designate that car as the Official Car of the Event and Organizer/Promoter
shall obtain any revenue derived as a result of the participation of the
national automobile manufacturer and/or its local dealer as a sponsor. In the
event that the national automobile manufacturer from which Organizer/Promoter
obtains a car is a manufacturer of a participating pace car (whether such car is
obtained by the Organizer/Promoter directly from the manufacturer or from a
local dealer), CART agrees that such official car, if represented in the
Official Pace Car fleet, or if not so represented, such other model produced by
said manufacturer which is represented in the Official Pace Car fleet as may be
selected by such manufacturer shall be designated by CART as the Official Pace
Car of such Event.
2
62
SCHEDULE "E"
EVENT ACTIVITIES
----------------
CART ACTIVITIES
---------------
The appropriate (road course, oval or 500 mile) standard CART schedule
will be in effect at all Events, including the "time certain"
requirements as implemented by CART.
RACE SCHEDULE FORMAT
--------------------
Schedules will be time certain. All sessions will start and end
(excluding Champ Car qualifying sessions(s)) according to the official
CART published schedule for the Event.
OFFICIAL SUPPORT SERIES AND PACE CAR ACTIVITIES
-----------------------------------------------
CART shall have the right to schedule, at any time during the Event,
including race day, its support series events as part of the overall
CART activities. Standardized schedules similar to the CART standard
format schedules will be developed for Official Pace Car on track
activities, and CART's support series, if any.
OTHER SUPPORT RACE ACTIVITIES
-----------------------------
Any additional motor racing events must be approved by the CART Vice
President, Competition, such approval not to be unreasonably witheld
These activities will be scheduled in a manner which will minimize any
interference with any scheduled CART, CART support series and Official
Pace Car on track activities. Support activities should be selected to
provide an appropriate complement to CART activities and must be a
balanced program and offer good entertainment value to the fans. A one
half-hour break between scheduled competition activities is
recommended. All on track support activities should be sanctioned by a
recognized FIA affiliate. If it is available, a formal sanction
agreement executed between the sanctioning body and the event organizer
will be on file with CART. This agreement must verify the performance
and obligations of the sanctioning body and the event organizer and
must not infer any organizational or operational responsibility to
CART. These activities must be held in compliance with the sanctioning
body's rules. The participant accident and liability insurance limits
and carrier must be acceptable to CART. In addition, celebrity events
must comply with the following:
1. All drivers must have successfully completed both classroom
and on track instruction.
2. Race cars must meet the safety requirements prescribed by the
sanctioning body of record and as a minimum must be equipped
as follows:
63
a) A seat that provides proper driver support in case of
impact.
b) A five (5) point competition seat belt and harness.
c) Rollover protection:
- roll cage for closed-wheel production-type
or -based vehicles;
- roll hoop for sports race and open-wheel
race cars.
d) The electrical system must include an accessible
master switch and an impact/rollover switch. Both of
these devices must interrupt the current to all
onboard circuits.
3. Historic and vintage car practice, qualifying, race or
exhibition activities will not be scheduled as part of this
Event. CART reserves the right to organize and sanction
Historic Championship Car "Parade" activities.
4. Only one race competition per CART sanctioned event weekend
will be scheduled for any support race category.
5. Commitments to live television coverage for support activities
will not be allowed, as such activities will be interrupted by
any delay in the schedule.
6. The television production company for the Event is limited to
the production of four (4) races on any given Event weekend,
including all CART sanctioned races.
ENTERTAINMENT ACTIVITIES
------------------------
Parades, exhibitions, stunts and other entertainment activities must be
scheduled in a manner which will not interfere with any racing
activity. CART does not accept any organizational or operational
responsibility for these activities. These activities must be held in
compliance with any applicable local, state or federal guidelines or
regulations. Event liability insurance must be in place to cover these
activities.
2
64
SCHEDULE "F"
POST RACE PROCEDURES/ACTIVITIES
-------------------------------
The following post-race Victory Circle procedures are to be followed by all
drivers, teams, sponsors, promoters, track and security personnel, P.R.
representatives and the media. Procedures may vary at individual tracks by prior
arrangement between Organizer/Promoter and CART. In the event of such change,
notification will be made in the Drivers Meeting and in the Press Room.
The objectives of these procedures are to develop a uniform handling of the
Victory Circle procedure in order to provide for a safe conclusion to the Event,
protect the integrity of the live television coverage of the Event, and to
present the winning drivers to the fans and the media in a organized fashion
that showcases the sport, and the sponsors who support it, in the most positive
way possible.
These procedures are meant to provide a guideline for the ideal handling of the
conclusion of the Event. Some of these procedures or the order of them may be
modified to take advantage of the physical properties of the Competition. It is
not meant in any way to deter the spontaneity or enthusiasm associated with
winning the race.
VICTORY CIRCLE PROCEDURES
-------------------------
1. The Victory Lane or Winner's Circle podium and backdrop shall be
constructed to meet all specifications contained in CART's agreement
with its Series title sponsor and shall be subject to the approval of
cart, the Organizer/Promoter, and its Series sponsor. A photograph or
sketch of the podium shall be provided to CART at least four (4) weeks
prior to the Event; CART shall respond within three (3) days. The
backdrop may not be covered over. Its appearance or function may not be
changed without permission of CART.
2. Security sets temporary fencing across from the track at designated
location near the finish line and along the side or sides of the track
to form a "U" shape into which the cars will drive. Security will
coordinate with the Assistant Technical Director. All personnel are
reminded of the CART Rule Book which prohibits the crossing of the
track and pit areas during any Competition.
3. Accredited photographers move behind security on up track side to await
the top three (3) cars.
4. The top three (3) cars stop perpendicular to security line side by
side. Or, alternately, winning car pulls into permanent track Victory
Circle where available.
5. Security sets temporary fencing across track behind top three (3) cars,
totally surrounding the cars, however, establishing two (2) entry
points on opposite ends of the Victory Circle for access. The following
personnel will be admitted, with appropriate accreditation: CART
officials, Broadcast Partners, owners/teams, driver's immediate family,
key sponsor executives, senior track and security, limited other
personnel as determined by cart and the Organizer/Promoter. One of the
two (2) entry points should be designated for the exclusive use of the
drivers, owners/teams and CART officials.
65
6. CART Promotions Coordinator gives appropriate tire manufacturer hat to
winner for television interviews. Television interviews will be
conducted in the following order with priority given to live shows over
tape:
A. Host TV broadcaster
B. Foreign TV broadcaster
C. Network radio-if live
D. Local radio-if live
E. CART Productions
Note that with three (3) drivers available, some interviews may occur
simultaneously. Live television will have preference of interviewing
drivers one, two and three without wait. All other driver interviews
may be conducted following trophy presentation.
Teams, P.R. representatives, sponsors and others should respect the
integrity of the television broadcast and act appropriately. All three
(3) drivers should be respected. No unauthorized hats, products, signs,
etc. may be thrust in front of Television cameras. No hats may be
exchanged during televisions interviews or in front of the camera.
7. Title Sponsor Victory Podium Truck, if applicable, moves into position
during interviews.
8. After all television/radio interviews, top three (3) drivers proceed to
Victory Podium. Security will provide escort for drivers. In the event
Television is still live, security will expedite same.
9. Drivers will be presented and interviewed by the track announcer on
stage in the following order: 3-2-1.
10. Organizer/Promoter may designate and present additional awards as
agreed by CART. Such agreement will not be unreasonably withheld. Any
additional award presentation must follow the Event trophy presentation
to the three (3) drivers and winning team owners.
11. Trophies are presented by executive presenters designated by
Organizer/Promoter. Event title sponsor hats are worn. Beauty queens
should not be on stage unless stated in pre-existing agreements with
title sponsor, or otherwise in accordance with the promotional model
program as agreed upon by CART and the Organizers/Promoters.
12. Winning owner(s) are present on podium for presentation of Trophy.
13. First round of photography. Executive presenters and/or owner(s) leave
platform.
2
66
14. CART Promotions Coordinator effectuates changes of driver's hats for
still photography session(s). This sequence will not appear on
television. Hats will be accommodated in the following order:
A. Series Title Sponsor(s)
B. Team Sponsor(s)
C. Limited number of additional sponsor(s) only by prior
agreement-time permitting
15. Organizer/Promoter retains the right to provide champagne which will
not be sprayed until all photo sessions are concluded.
VICTORY LAP
-----------
Drivers should be showcased to the fans. CART News Managers may accompany
drivers if sufficient space is available.
Upon completion of Victory Lap drivers proceed to Press Room for interviews.
Security will provide proper escort.
The Victory Lap is optional at the discretion of Organizer/Promoter.
3
67
SCHEDULE "G"
FEDEX SERIES MARKETING AND SPONSORSHIP PROGRAM
----------------------------------------------
Pursuant to paragraph 29B of the Agreement, Organizer/Promoter shall provide at
its expense except as otherwise specifically provided the following additional
entitlements for the CART Series title sponsor Federal Express Corporation.
FEDEX SERIES MARKETING PROGRAM
------------------------------
Organizer/Promoter shall provide FedEx the following Series marketing
entitlements, at no cost to CART or FedEx, except as otherwise stated:
A. Exclusivity in the "shipping" category, subject to Schedule H,
including, but not limited to (i) on- site visibility; (ii) on-site
sampling activities; and (iii) provider of routine delivery services;
B. The right to brand the program in any mutually determined manner within
the defined category;
C. Twenty Thousand ($20,000.00) Dollars hospitality credit to be applied
toward site/facility rental, food and beverage;
D. Right to use the term "Associate Sponsor" of each Event; and the rights
that are assigned to an Associate Sponsor;
E. Inclusion in the Event press kit;
F. One (1) full page, four-color advertisement in the Event souvenir
program, with content determined by FedEx;
G. One (1) page of editorial in the Event souvenir program, with content
determined by FedEx;
H. Ten (10) public address announcements over race weekend, with content
determined by FedEx but subject to approval by CART, which approval
shall not be unreasonably withheld;
I One hundred fifty (150) grandstand/admission tickets, and a discounted
ticket pricing program for purchase of additional Event tickets for
FedEx employees;
J. One hundred fifty (150) paddock access credentials;
K. One (1) billboard visible to television exposure in addition to the
Event signage rights accorded FedEx as the Series title sponsor as
provided below;
L. One 40' x 40' Expo/Sampling display space in the manufacturing midway;
M. Right to use Event logo for promotional purposes;
N. Competition trophies to be delivered to Victory Circle via FedEx truck;
68
O. One FedEx revenue operation (kiosk) located in CART paddock area for
delivery service;
P. Space for a FedEx cut-away truck display; and
Q. Series Logo or FedEx logo painted on grass or wall surface visible to
television exposure, during the Event.
In consideration of the forgoing Series marketing entitlements provided by
Organizer/Promoter, cart agrees to pay Organizer/Promoter a total amount
equivalent to One Hundred Thousand ($100,000.00) Dollars for the 2001 Event,
with such amount increased to One Hundred Fifty Thousand ($150,000.00) Dollars
for the 2002 Event and thereafter increased by 2.5% annually through the 2006
Event in accordance with Paragraph 29B of this Agreement, which amount shall be
deducted from the final payment of the Organization and Rights Fee for such
Event.
FEDEX SERIES TITLE SPONSORSHIP RIGHTS
-------------------------------------
Organizer/Promoter shall provide FedEx the following Series title sponsorship
rights at no cost to CART or FedEx, except as otherwise stated:
A. One (1) location for a painted sign highly visible to the principal
grandstands and to television cameras covering the race. FedEx will
assume responsibility and cost for painting the sign.
B. Preferential treatment in placement of temporary banners, signs, and
flags at each track for CART Events only. Where there is a tower, or
two towers, FedEx's banner shall be placed in a center location,
separate and apart from all other signs and banners. FedEx shall
receive at no charge at least two (2) choice locations at each track.
Additional placement of FedEx signs and banners will be in such
locations as may be determined by discussions between
Organizer/Promoter and representatives of FedEx.
C. Series Logo or FedEx logo featured in all Event promotional activities,
including news releases, posters, marketing brochures, souvenir
programs, newspaper inserts, and all tickets;
D. Series Logo or FedEx logo prominently featured on the backdrop of all
Victory Circle celebrations and media area backdrops; and
E. Right to hang one (1) banner on the Timing and Scoring tower (at tracks
that have such a tower).
GENERAL
-------
A. Where applicable, FedEx shall supply in a timely manner, the necessary
promotional material, color separations, body copy, hospitality
requirements, and any other information required to accommodate such
marketing and sponsorship entitlements.
B. All production costs associated with the aforesaid entitlements shall
be the responsibility of FedEx.
2
69
SCHEDULE "H"
CARGO, TRAVEL ARRANGEMENTS AND OTHER ACCOMMODATIONS
---------------------------------------------------
DEFINITIONS
-----------
"ENGLISH CUSTOMS SERVICE" means the applicable governmental body in
United Kingdom United Kingdom purporting to exercise jurisdiction to
tax in respect of the importation of goods into United Kingdom.
"EXHIBITIONS CONVENTION" means the "Customs Convention concerning
facilities for the importation of goods for display or use at
exhibitions, fairs, meetings or similar events" done at Brussels on 8
June, 1961 as amended, supplemented or superseded from time to time
including any convention in substitution thereof; also referred to as
"special event" status;
"EQUIPMENT" means the race cars and related accessories, parts, tires,
tools, machinery, supplies and all items reasonably necessary for
temporary use in United Kingdom by CART or any Team to enable CART to
satisfy its obligations under this Agreement in respect of the Event;
"FACILITY" means the area within which the Event is to be staged.
"TEAM" means a CART entrant duly registered with CART and, where the
context so permits or requires, includes its owners, drivers,
officials, sponsors, mechanics and other crew members and personnel.
"TEMPORARY ADMISSION" has the meaning ascribed to that term in the
Exhibitions Convention.
AIR TRANSPORTATION
------------------
1. Obligations of Organizer/Promoter:
A. Organizer/Promoter shall for each Event provide to CART's
reasonable satisfaction the round trip air transportation from
the United States of America for the Equipment for a maximum
of thirty (30) Teams to participate in the Event. Such travel
shall be in accordance with the Regulations for International
Air Freight Movement for cart Championship Races, as amended
from time to time, which is attached to this Schedule as
Exhibit 1 and incorporated by reference.
B. Organizer/Promoter shall provide to CART's reasonable
satisfaction round trip air transportation from the United
States of America to United Kingdom for reasonably necessary
Team members and CART officials. Each entrant shall be
entitled to a maximum number of fifteen (15) coach class round
trip tickets. In addition, each full season entrant shall
receive two (2) first class round trip tickets
70
and three (3) business class round trip tickets. CART will be
entitled to a maximum of eighty (80) coach class round trip
tickets and up to twenty (20) additional coach class round
trip tickets for Event officials, and one (1) first class and
twenty (20) business class round trip tickets, or such other
allocations as the parties may agree.
C. Organizer/Promoter shall be responsible for all transportation
while in United Kingdom for Equipment, all Team members and
CART officials relating to the Event, including but not
limited to travel to and from the airport, the hotel(s), the
track, etc.
D. The place of embarkation and disembarkation in the United
States for the Team members and CART officials shall be New
York or Chicago. The place(s) of embarkation and
disembarkation in the United States for the Equipment shall be
Indianapolis Such air transportation for freight and passenger
travel shall be arranged by CART in its sole discretion, at
Organizer/Promoter's expense.
E. The planes used for transportation of Equipment shall be for
the exclusive use by CART and its Teams Series suppliers,
Official Sponsors and other participants (as mutually agreed
between Organizer/Promoter and CART) may be provided with
freight cargo space, if such space is available.
Organizer/Promoter recognizes that so long as Federal Express
shall be the title sponsor of the Series, they shall be the
preferred provider of air and ground cargo transportation, so
long as their services are provided on a competitive basis.
Furthermore, Federal Express shall be provided a reasonable
opportunity to match any competitive qualifying written bid.
F. Organizer/Promoter shall pay, when due, or secure the payment,
by means of a bond or other undertaking which shall be at
Organizer/Promoter's expense, of any customs duties, import or
export duties and sales or use tax or any other governmental
fee(s) which at any time are imposed, assessed, levied or
charged on or upon Organizer/ Promoter or CART or any Team by
the English Customs Service (or other agency) or the U.S.
Customs Service in respect of the Equipment for the Event
specified in the inventories referred to in Paragraph 2A below
and shall provide to CART within forty-five (45) days of the
conclusion of the Event a copy of the notice of assessment of
duties or taxes issued by the English Customs Service (or
other agency) or the U.S. Customs Service in respect thereof.
G. Organizer/Promoter shall notify and keep the CART Vice
President, Logistics informed on a reasonably current basis,
as may be specified by CART, of the air transportation
arrangements in respect to this Agreement, including, where
appropriate, adequate assurances. The parties shall
communicate and cooperate so as to minimize the overall
expenses involved.
2
71
H. Organizer/Promoter shall be responsible at its expense for
providing insurance coverage for all Equipment and cargo to an
adequate (replacement) value to be mutually agreed between the
parties, from the point of packaging and lodging in the United
States of America, until same is returned in the United States
of America to the respective owners. Ultimate responsibility
and the risk of loss in the safe transport of the cargo and
Equipment to and from United Kingdom remains under all
circumstances with Organizer/Promoter and Organizer/Promoter
agrees to indemnify and hold harmless CART, its teams and
suppliers against any and all loss resulting from such
transportation.
2. Obligations of CART:
A. CART shall for each Event give Organizer/Promoter written
detailed preliminary inventories of all the Equipment and
written notice of the program, dates and other relevant
details of the importation of the Equipment at least 45 days
prior to the scheduled date of their exportation from the
United States of America; if necessary such inventories shall
be updated and finalized (but not substantially changed
without Organizer/ Promoter's approval), by CART and given to
Organizer/Promoter at least seven (7) days prior to the
scheduled date of the exportation from the United States of
America.
B. CART shall use its best efforts to ensure that all information
to be supplied by CART or any Team or supplier under Paragraph
2A above is true, complete and accurate and does not contain
any misleading statements or omissions.
C. CART shall fully and promptly comply and shall cause each Team
or supplier and their respective officers, officials,
employees and agents to fully and promptly comply with all
directions of the English Customs Service, the U.S. Customs
Service, their officers and agents, and Organizer/Promoter and
its officers, employees and agents with respect to the
importation into United Kingdom, exportation from United
Kingdom, exportation from the United States of America, and
transportation, storage and holding in United Kingdom of the
Equipment.
D. CART shall be responsible for and ensure that all the
Equipment is either exported from United Kingdom by CART and
the Teams and suppliers, abandoned free of all expense to
United Kingdom or destroyed or expended under the official
supervision or the satisfaction of the English Customs Service
following the conclusion of each Event within the time limited
for same by Organizer/Promoter or the English Customs Service.
E. CART shall fully reimburse Organizer/Promoter on demand the
total of all customs duties, import duties and sales tax
imposed, assessed, levied or charged by the English Customs
Service in respect of the Equipment if Organizer/Promoter's
obligations under Paragraph 1F above arises as a result of
CART's failure to comply with the preceding Paragraph 2D.
3
72
3. Additional travel provisions are included in Exhibit 1 to this
Schedule. In the event that two Competitions are held in Europe on a
back-to-back basis, each entrant shall be allotted 1750 pounds over the
normal freight allowance in place at the time of the Event, and the
Organizers/Promoters of the Events shall work together in good faith to
determine an allocation of travel expenses and liabilities between
themselves; provided, however, under no circumstances shall
Organizer/Promoter be obligated to incur liability for travel expenses
in excess of those that would be incurred hereunder were there no other
Competitions, unless Organizer/Promoter obtains an indemnity agreement
from a party satisfactory to Organizer/Promoter, or Organizer/Promoter
is secured by a letter of credit or another credit arrangement
satisfactory to Organizer/Promoter.
ACCOMMODATIONS
--------------
Organizer/Promoter shall provide to CART's reasonable satisfaction
accommodations for reasonably necessary Team members and CART officials
up to a maximum of two (2) first class rooms (suites or equivalent) per
entrant; up to four (4) single occupancy rooms per entrant; up to seven
(7) double occupancy rooms per entrant; up to five (5) first class
rooms (suites or equivalent) for CART; up to thirty (30) single
occupancy rooms for CART; up to forty (40) double occupancy rooms for
CART; and up to ten (10) additional double occupancy rooms for CART for
additional Event officials. These accommodations shall be reasonably
close to the site of the Competitions. These accommodation expenses
shall be limited solely to room tariffs up to a maximum of seven (7)
nights, provided adequate air transportation is available and except
that up to thirty (30) CART employees and officials that CART shall
designate shall be accommodated for up to eight (8) nights. Such
designated persons shall be accommodated in the same room that they
shall occupy throughout their stay. In order to minimize lost work
time, Organizer/Promoter shall be responsible to take all reasonable
actions to ensure that rooms are available for occupancy at the time
the Team members or CART officials are scheduled to arrive in United
Kingdom. All applicable accommodation provisions shall be extended as
applicable if the race is run on the rain date.
4
