A Look At A 2007 MotoGP Red Bull Rookies Cup Contract

A Look At A 2007 MotoGP Red Bull Rookies Cup Contract

© 2007, Roadracing World Publishing, Inc.

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1 RIDER’S CONTRACT concluded between Red Bull GmbH, Am Brunnen 1, 5330 Fuschl am See, Austria (hereinafter referred to as “Red Bull”) and (hereinafter referred to as the “Rider”) as follows: § 1 General Information With effect of January 1, 2007 Mr. ________________ (“Rider”) shall be engaged as a motorcycle rider for Red Bull in the capacity of racing rider or test rider. § 2 Duration of Contract This Contract is concluded for a fixed term of 5 years. No special declaration shall be required for its dissolution. Prior to the expiration of this deadline, the Contract shall end if no place is available in a team for the Rider by December 31 of each year for the upcoming season, particularly if such lack of place is caused by inadequate performance of the Rider. § 3 Area of Responsibility 1. During the first contractual year, the Rider shall be deployed in the Red Bull MotoGP Rookies Cup. The team will be determined by Red Bull. 2. In the following years Red Bull shall determine (i) in which Championship series the Rider will be engaged, (ii) whether the Rider be engaged as a racing rider or as test rider and (iii) which team the Rider shall be deployed in. 3. The Rider’s area of responsibility includes, in particular, the participation in races, in training sessions, in possible test drives, participation in PR events, press conferences or other events upon the request of Red Bull. During these events, the Rider has to wear the respective stipulated uniforms including helmet or appropriate headgear. The authorised advertising inscriptions and logos attached to same must not be covered and must be well visible. The Rider is under obligation to keep his uniforms in a flawless, cleaned and undamaged condition at all times. 4. Possible interviews given by the Rider must be authorised in advance by Red Bull for the purpose of planning a uniform strategy for the Rider and the team. 5. The Rider is under obligation, in accordance with the instructions, to complete training and fitness programmes as well as medical programmes. 6. Upon termination of the Contract, the Rider has to return all uniforms, leathers and other pieces of equipment and advertising material made available to him by Red Bull or by the team. Following the termination of the contractual relationship, neither parts of the uniforms nor advertisement material may be used by the Rider. § 4 Remuneration 1. In consideration for his services under this Contract, Red Bull will provide the Rider with a motorcycle which complies with the regulations of the relevant Championship series. Moreover, Red Bull will procure the services of the appertaining racing team for the driver. Per calendar year, these services on the part of Red Bull represent the equivalent of approximately EUR 150,000 in case of deployment in the Red Bull MotoGP Rookies Cup; EUR 150,000 in case of deployment in the Red Bull MotoGP Academy; EUR 250,000 in case of deployment in the 125cc class; EUR 350,000 in case of deployment in the 250 cc class EUR 1,500,000 in case of deployment in the MotoGP class. 2. The Rider shall hold Red Bull safe and harmless regarding possible taxes, social insurance contributions as well as other charges and duties in connection with this Agreement. 3. With the consideration described in point 1 above, all the services on the part of the Rider during his activity in favour of Red Bull shall be deemed settled. 4. In the event that the Rider participates in more than 15 advertising events, press conferences or other events per year on request of Red Bull, the participation in such events which exceeds this number is to be remunerated separately. For clarification, races, trainings, tests, etc. and advertising events connected thereto are not numbered among these 15 advertising events, but counted separately. § 5 Profit Sharing 1. As soon as the Rider’s income in connection with his motor sport activities exceeds EUR 250,000 gross per calendar year, Red Bull shall receive 10% of all gross income which the Rider obtains in connection with his motor sport activities for a period of seven years. This provision applies regardless of whether this 7-years-period begins or extends after the expiration or the termination (for whatever reason) of this Contract. The payments to Red Bull are due each year on March 31 for the preceding calendar year. Red Bull will use these amounts for the sponsoring of young athletes. 2. The Rider shall inform Red Bull of his own accord at least twice a year about his income in connection with his motor sport activities. In this context the Rider shall grant Red Bull or a third person named by Red Bull unrestricted access to his books. § 6 Prohibition of Competition 1. During the term of this Contract, the Rider must not pursue racing sports activities which are not covered by this Contract. In particular, tests, races or other activities for other teams require the prior written approval by Red Bull. Rider acknowledges that Red Bull will not grant its approval in the event Rider wishes to participate in any racing sport activities supported, sponsored or otherwise connected to non-alcoholic beverage brands, in particular energy drink brands. 2. The Rider grants Red Bull the exclusive right to use his equipment (racing leathers, headgear, etc.), his name and his likeness for commercial purposes and to license or assign all or part of these rights to third parties. During the duration of this Agreement, the Rider shall only be entitled to conclude agreements with other sponsors, managers, agents or motor sport teams after he has obtained the prior written approval by Red Bull. The Rider has to inform Red Bull without delay about such negotiations with third parties. The Rider shall be entitled to grant a promotion space on his racing leathers with a maximum size of approximately 8 x 4 cm each to two personal sponsors, if the identity of these sponsors and the exact positioning of the promotion spaces have been approved in advance by Red Bull and by the main sponsors of the applicable championship series. 3. The Rider warrants that he has informed Red Bull before signature of this Agreement about all his existing sponsoring contracts, management contracts, service contracts and any other contracts with third parties in connection with his racing activity. The Rider warrants that these contracts with third parties do not in any way interfere with the provisions of this Agreement. § 7 Advertising Measures 1. Red Bull shall have the right to photograph the Rider without additional remuneration prior to, during and following races, tests or training sessions as well as during any other event, and to make sound or picture recordings of him. 2. For an unlimited period, including after termination of this Contract, irrespective of how it shall have been terminated, Red Bull has the sole right to the utilisation, copying and marketing, in particular for commercial purposes, of such photographs, sound recordings, pictures and all biographical and other descriptive documents regarding the Rider. The Rider shall receive no separate remuneration for same. 3. In this respect, the term “photograph” shall include any pictorial representation or reproduction, produced in whichever manner, and shall be deemed to mean in particular still as well as moving pictures and pictorial representations on video tapes, magnet recording tapes or other data carriers. Sound recordings shall be deemed to mean any kind of recording of the Rider’s voice, irrespective of how such recordings have been made. 4. Red Bull shall be entitled, without prior authorisation on the part of the Rider, to assign the rights stated in Section 1 to 3 to a third party or to exercise these together with a third party. 5. The rights of Red Bull regulated in the Sections 2 to 4 shall not be affected by the termination of the Contract. The Rider shall not be entitled to any separate remuneration for same. § 8 Obligations on the Part of the Rider 1. The Rider may not act in a manner that is wrongful, illegal or immoral or in a manner which may otherwise have a detrimental effect on or damage the public image, the goodwill or the status of Red Bull, or act in a manner that may be detrimental to or damage same of a sponsor of the team determined by Red Bull, or the products of same. 2. The Rider is to hold Red Bull safe and harmless regarding possible costs, penalties or expenses, of whichever kind, which are incurred by Red Bull as a result of the Rider’s conduct. 3. The Rider is bound by directions and subject to the team order. In accordance with the instructions, he shall participate in each race test and training session in the respective allocated motorcycle. 4. The Rider must possess all the authorisations and licenses which are necessary for the implementation of his contractual obligations. § 9 Medical Test 1. Upon Red Bull’s request, the Rider shall have a medical test carried out regarding the state of his health. The cost of the first medical test will be born by Red Bull; the cost of the further tests (if necessary) will be born by the Rider. These tests shall be carried out by Dr. Bernd Pansold at Alte Fabrik zu Vischwang, Unterdorf, 5303 Thalgau, Austria. 2. Additionally, the Rider undertakes to undergo regular fitness tests upon Red Bull’s request at Dr. Pansold’s (address see para 1 above) and in accordance with Dr. Pansold’s instructions. Red Bull will bear the direct cost of these fitness tests; however, the Rider will bear all accommodation and travel cost in connection with these fitness tests. 3. Dr. Pansold shall also be responsible for the determination of any possible inability to drive on the part of the Rider, unless such determination is done directly by the designated race doctor of the respective racing event. 6 § 10 Premature Termination of the Rider’s Contract 1. Red Bull shall be entitled, in the event of an important reason, to rescind the contract in writing with immediate effect. An important reason shall be deemed given, in particular, if the Rider a) is disqualified either nationally or internationally, or if he is suspended from riding; b) is, or becomes, physically or mentally unable to ride a motorcycle in a race, a test or during a training session; c) repeatedly does not follow the team orders; d) repeatedly violates the instructions given by Red Bull, in particular such given by the Red Bull authorised racing representative or the racing manager of his team; e) does not achieve sufficient racing results; in particular if the Rider is not regularly placed among the top three in the races of his current championship series, if he retires on the basis of intent or gross negligence or is disqualified on the basis of intent or gross negligence; f) violates his obligations under this Contract. 2. The Rider shall be entitled to terminate the Contract in writing with immediate effect in the event of good cause. Good cause shall be given in particular if the Rider is rendered unable to further provide the agreed services. § 11 Compensatory Damages 1. The Rider shall hold Red Bull, the team and all responsible persons authorised by same as well as the sponsors safe and harmless regarding all claims which are lodged against individuals or all of same and which originate from an accident or another occurrence which or that has been caused by the Rider. 2. The Rider shall be liable for all damage suffered directly or indirectly by Red Bull for which he is responsible. The liability on the part of the Rider for damage suffered by Red Bull as a result of his riding activities during training, tests or races, shall be restricted to intent and gross negligence. 3. The liability on the part of Red Bull, the team, a sponsor or the racing manager shall be restricted to gross negligence and intent with regard to possible damage suffered by the Rider during the course of motorcycle racing. This provision shall also apply to the Rider’s legal successor, in particular to the dormant estate. 4. The Rider shall take out accident insurance at his own cost. The Rider shall present Red Bull with an appropriate health insurance policy not later than two weeks after both parties have signed this Contract. By 15 January of each year the Rider shall furnish proof of the payment of insurance premiums. Obligation to Disclose 1. Written notification regarding the Rider shall be made to the Rider’s last known address. As long as the Rider does not provide information of a new address by way of a registered letter, the address stated in this Contract is to be used. 2. The Rider is to inform Red Bull without delay of amendments of the marital status, place of residence and similar circumstances. All damage and disadvantages resulting from a possible failure shall be deemed the responsibility of the Rider. Penalties In the event that the Rider prematurely terminates the Contract without just cause, or if the Rider violates key provisions of this Contract, in particular if he violates § 6 Prohibition of Competition and § 7 Advertising Measures, he shall be required to pay to Red Bull a contractual penalty. The amount of this contractual penalty shall equal half the value of the services which Red Bull has procured to the driver up until the moment of the Rider’s contract violation; the value of Red Bull’s services is calculated in accordance with the figures set out in § 4 para 1 of this Contract. This penalty shall not be deemed subject to the right on the part of a judge to moderate. Final Provisions 1. Red Bull shall be entitled, without the approval of the Rider, to assign all or part of the rights resulting from this Contract to third parties. 2. Subsidiary agreements pertaining to this Contract do not exist. Amendments or supplementary information pertaining to this Contract shall be required to be submitted in writing. 3. The contestability or invalidity of a provision of this Contract shall not affect the validity of the other provisions of this Contract. 4. This Contract cancels and supersedes all previous agreements between the parties in respect of the subject matter of this Contract. 5. All legal disputes resulting from this Contract regulated by this legal relationship entered into between the parties, including such pertaining to the validity, effectiveness, interpretation or rescission of the Contract, shall be decided upon solely before the Court of Arbitration of Zurich by an arbitration senate in accordance with the rules of arbitration valid for same. The Court of Arbitration is to apply Austrian material law. The language of the arbitration proceedings shall be deemed English. The unsuccessful party shall carry all costs incurred for proceedings, in particular, the fees for arbitrators, and shall reimburse the fees of the parties` representatives in the sum of the amounts stipulated by the Court of Arbitration. 6. The Rider is under obligation to maintain secrecy regarding the content of this Contract with regard to dealings with third parties. Date: ______________ Date: _______________ ______________________________ ________________________________ Red Bull GmbH Rider _______________________________________ In case of legal minority: Signature of Parents / Guardians

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