SPONSORSHIP AGREEMENT THIS SPONSORSHIP AGREEMENT ("Sponsorship Agreement" or "Agreement") is made by and between Race Team _____________________________ ("The Race Team"), and Sponsor:___________________________ ("The Sponsor"), STATEMENT OF PURPOSE "The Sponsor" has agreed to act as an associate sponsor for a Speedway team fielded by "The Race Team" and driven by ________________________. "The Sponsor" expects to receive promotional and advertising benefits from such sponsorship. It is the intention of the parties hereto to field competitive motorcycles in all the events for which "The Sponsor" has agreed to serve as associate sponsor. Now, therefore, in consideration of the mutual covenants and agreements hereinafter set forth and intending to be legally bound hereby, the parties hereto agree as follows: I. SPONSORSHIP 1.01 "The Race Team" hereby grants to "The Sponsor" a Sponsorship relationship with the speedway motorcycle(s) raced under number ____ for the fee paid and other considerations contained herein. 1.02 "The Sponsor" shall have a decal located: ___________________________________________________________________________ In addition, the "The Sponsor" logo will be embroidered on: ___________________________________________________________________________ [Specify other sponsorship services to be provided.] ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 1.03 All decals for the race motorcycles and all painting and other preparation of the race motorcycles shall be provided at the expense of "The Race Team". 1.04 Except as herein otherwise expressly provided to the contrary, the cost of providing, painting and maintaining the above items shall be the responsibility of "The Race Team". 1.05 During the term of this Sponsorship Agreement, "The Race Team" shall maintain a race team, and shall use its best efforts to qualify and compete in the remaining Speedway races at _________________ Speedway and/or such other Speedway races as "The Race Team" in its sole discretion may determine. II. DRIVER AND TEAM OBLIGATIONS 2.01 During the term of this agreement and any renewals or extensions thereof, "The Race Team" represents and warrants to "The Sponsor" that: (a) It will at its own expense hire, furnish and maintain at all times an experienced first-class complete race team ("The Race Team") consisting of mechanics, pit crew, driver(s) and all other personnel necessary to furnish, maintain, operate and race the race motorcycle(s) and support vehicles, including, without limitation, ensuring that the following duties are performed: (i) Building the race motorcycles and purchasing or leasing all necessary support vehicles. (ii) Repairing, maintaining, storing and transporting the race motorcycles and support vehicles between Speedway races; and (iii) Utilizing its best efforts to qualify in and compete in the remaining Speedway races at ________________ Speedway and/or such other Speedway races as "The Race Team" in its sole discretion may determine. 2.02 "The Race Team" warrants to "The Sponsor" that it will secure the services of a qualified driver during the term of the sponsorship agreement, and that each driver will handle himself (herself) in a respectable manner that would not unfavorably impact any sponsor. "The Race Team" has the right to terminate the services of any driver should inappropriate behavior occur. 2.03 In the event any driver's services should no longer become available to "The Race Team" for any part of a race season covered by this agreement, it is the exclusive right of "The Race Team" to replace the driver. The replacement or substitute driver is subject to no approvals other than "The Race Team"'s sole discretion. III. TERM AND TERMINATION 3.01 The term of this contract is from the date executed, through the final race of the 20_____ season at _________________ Speedway, or such other Speedway races as "The Race Team" in its sole discretion sees fit to enter, this term not to extend past December 31, 20____. This contract shall apply to all Speedway races in which "The Race Team" competes during such term regardless of locale. 3.02 Either party may terminate this agreement if the other party is found to have breached the terms of the agreement and said breach is not cured within thirty (30) days of receipt of written notice of such breach from the non-breaching party. In the event a breach cannot be completely cured within the thirty (30) days allowed to cure the breach, and the curing process has been started within thirty (30) days, and the breaching party has been diligent in its efforts to cure through the period, both parties may agree to continue the agreement until such time as the breach is cured. Rightful termination hereunder shall be without prejudice to any other rights or remedies a party may have. IV. COMPENSATION 4.01 As compensation for the sponsorship relationship under the terms of this agreement, "The Sponsor" agrees to pay a total of $__________ and additional compensations such as products: ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 4.02 The schedule for the payment of this compensation shall be as follows: $__________ - Upon execution of this agreement. Payments are to be made payable to "The Race Team" and sent to the address shown below. V. INDEMNIFICATION 5.01 "The Race Team" will indemnify, defend and hold "The Sponsor" and its affiliates, subsidiaries, officers, directors, employees, customers, distributors, independent contractors, suppliers, agents, successors and assigns, harmless from and against all actions, suits, proceedings, judgments, demands, claims, liabilities, losses or expenses whatsoever (including reasonable attorney's fees) incurred in connection with or arising from the race motorcycle(s), the support vehicle(s), the activities or omissions of driver or team members or the activities or omissions of "The Race Team" including, without limitation: (a) Any claim falling within the insurance coverage; (b) "The Race Team"'s breach, misrepresentation or non-performance under this agreement; (c) Any claim or action for or relating to personal loss, injury, death, property damage or otherwise, suffered by participants, competitors (such as the drivers), spectators or others at any of the racing events or team activities or activities relating to the race motorcycles (or their relatives as a result thereof) or otherwise; or (d) Any payment owed by "The Race Team" related to the team support vehicles or race motorcycles. 5.02 Both during and after this sponsorship agreement, "The Sponsor" will indemnify, defend and hold "The Race Team", its officers, directors, employees, team members, customers, distributors, suppliers, agents, successors, and assigns, harmless from and against all actions, suits, proceedings, judgments, demands, claims, liabilities, losses, or expenses whatsoever (including reasonable attorney's fees) arising from "The Sponsor"'s breach, misrepresentation or non-performance under this agreement. VI. INSURANCE 6.01 "The Race Team" shall provide at its expense and maintain throughout the term of this Agreement spectator liability insurance in an amount not less than $1 million single limit coverage with respect to any liability relating to the activities of the race team in the performance of this Agreement. This spectator liability insurance coverage is usually provided by the race track and the governing racing body ( A.M.A., C.M.A., F.I.M., I.C.E. ).If requested, "The Race Team" shall, within 90 days of the execution of this Agreement, supply "The Sponsor" with a copy of such policy of insurance or a certificate thereof, and such policies shall be cancelable only upon 10 days written notice to "The Sponsor". VII. MISCELLANEOUS 7.01 This contract is not assignable by either party without written consent of all interested parties. 7.02 Any notice required to be given under this agreement shall be sent via registered mail, return receipt requested and deemed given at the time it is received by either party, provided such notice is addressed as follows: Race Team:___________________________ Attn: _______________________________ ADDRESS:____________________ ____________________________ ____________________________ ____________________________ Sponsor:_____________________________ Attn: ________________________________ ADDRESS:____________________ ____________________________ ____________________________ ____________________________ 7.03 This agreement shall be governed and construed within accordance with the laws of _____________ (state / province). 7.04 This agreement constitutes the entire agreement between the parties and may not be modified, amended or changed except by a writing signed by all parties to this agreement. 7.05 This agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, provided that neither party hereto shall have the right to assign this agreement or delegate any duty, service or responsibility hereunder without the prior written consent of the other party. Each party to this sponsorship agreement warrants and represents that the individual signing this agreement on behalf of a corporate party has the authority to bind his or her respective company in and to the terms of the agreement and each party further warrants and represents that it is authorized by its Board of Directors to enter into this sponsorship agreement. Race Team:_________________________ By: Print Name: ______________________ Title: ____________________________ Date: ____________________________ Sponsor: __________________________ By: Print Name: ______________________ Title: ____________________________ Date: ____________________________