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HomeMy WebLinkAbout01/17/2006, C4 - AMGEN TOUR OF CALIFORNIA PARTICIPATION AGREEMENT council ?4..d.,DW j acEnaa nEpmt h=Num6w CITY O F SAN LUIS O B I S P O FROM: Linda Fitzgerald,Acting Parks & Recreation Director SUBJECT: AMGEN TOUR OF CALIFORNIA PARTICIPATION AGREEMENT CAO RECOMMENDATION Approve agreement with AEG Cycling in substantially the same form as the attached draft version, with the understanding that any outstanding issues are resolved to the satisfaction of the City Attorney for the City of San Luis Obispo's participation in the Amgen Tour of California cycling event and authorize the Mayor to execute the final agreement. DISCUSSION In May 2005, the City and Chamber of Commerce were approached by representatives from Anschutz Entertainment Group (AEG) and Medalist Sports to secure the City's participation in a world-class cycling event. The inaugural Amgen Tour of California,taking place over eight days in February 2006, covers over 700 miles from San Francisco to Redondo Beach in a format similar to the Tour de France. Council granted conceptual approval for participation in the event in June 2005. During the past few months, representatives from the Parks & Recreation Department and the Chamber of Commerce, as well as interested community members have formed a local organizing committee, to host the Stage 4 Finish on Thursday, February 23 and the Stage 5 Start on Friday, February 24. The cycling community has been enthusiastically supportive of the efforts by the City to bring the"Tour"to San Luis Obispo. A letter of participation was signed by the Mayor on October 11 with the understanding that an agreement would be forthcoming to formalize the arrangement between the City and AEG Cycling. The agreement, received in late November, included several items that the City Attorney's office needed additional clarification on. Because of the time constraints involved with placing this item on the Council's agenda and having the agreement signed before the event occurs, a draft agreement is being presented at this time. The outstanding issues under negotiation between the City Attorney's office and AEG Cycling's legal representatives at the time this report was prepared are set forth in Attachment 2. CONCURRENCES The Fire, Police, and Public Works Departments along with the Risk Manager concur with the CAO recommendation. The City Attorney's office is continuing to negotiate with AEG Cycling on language to be included in a final agreement. Gy� Amgen Tour of California Participation Agreement Page 2 FISCAL IMPACT When the City conceptually agreed to participate in the Amgen Tour of California, it was determined that service costs for Police, Fire, Public Works and Parks & Recreation during the two days would be absorbed through each department's operating budget in light of enhanced economic development and tourism anticipated from hosting the event. Estimated City staff costs related to the event could be between $10,000 and $12,000, some of this in overtime costs. These funds are available in existing budgets. The City is also waiving facility use fees estimated at $1,800 for use of the Ludwick Center, City/County Library and Mission Plaza. There may be an estimated loss of $2,400 in parking meter revenue during the times that the affected streets and parking lots will be unavailable for vehicle parking, although staff is exploring options to mitigate these effects. There are additional costs identified in the agreement, such as securing portable toilets, providing security, hospitality items, and other necessary infrastructure needs. The local organizing committee has been working on raising approximately$20,000 to cover those costs through in-kind services and donations. To date, $15,000 from three major local sponsors - Prudential California Realty, Cannon Associates and the Tribune- has been pledged with more funds expected to come in over the next few weeks. Other than the initial costs identified for City services, the remainder of the items in the agreement will be covered by sponsorship money. ALTERNATIVE If the agreement with AEG Cycling is not accepted, the action would exclude the City from being a host location on the Tour of California. The strong community support for the event would be lost as well as loss of tourism and additional revenues the City would garner by hosting the event. The City could be responsible for reimbursing AEG Cycling for any costs associated with the change of the Host city. Attachments: 1) Amgen Tour of California City Participation Agreement 2) Outstanding Agreement Terms to be Resolved 3) Letter of support to Medalist Sports June 16,2005 4) Letter of participation—October 11,2005 Electronic File Path: G:Admin/Council Agenda Reporw7ot r of California/CAR-TOC Agreement 010506 revised 400 �y� ATTACHMENT. I AMGEN TOUR OF CALIFORNIA CITY PARTICIPATION AGREEMENT (Stage : fNAME OF CITYI) This Amgen Tour of California City Participation Agreement (hereinafter referred to as the "Agreement")is entered into as of this_day of 2005, by and between AEG Cycling, LLC, a California limited liability company ("AEG Cycling"), and , a municipal corporation organized under the laws of the State of California("City"). (AEG Cycling and City are sometimes hereinafter collectively referred to as the "Parties" and individually as a"Party".) RECITALS: WHEREAS, AEG Cycling owns the Amgen Tour of California, a multi-stage cycling race across the State of California (the "Tour"); WHEREAS, in connection with its ownership of the Tour, AEG Cycling has rights to certain marks, logos, and other distinctive indicia of the Tour; WHEREAS, AEG Cycling-has contracted Medalist Sports ("Medalist") to assist with presenting, organizing and coordinating the Tour and developing its route and to utilize the Tour Marks (as hereinafter offered) in connection therewith; WHEREAS, City wishes to acquire the rights and benefits of hosting the Host Stage (as that term is defined herein) and to undertake all of the obligations related to such hosting, all under the terms and conditions of this Agreement; and WHEREAS, AEG Cycling wishes to grant such rights to the City under the terms and conditions of this Agreement. NOW THEREFORE, in consideration of the promises and covenants contained herein and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the Parties hereby agree as follows: 1. Designation of Host and Location of Host Stage Venue. AEG Cycling licenses to City (collectively, "Host") the right to host the (the "Host Stage") for the Tour to be held in February 2006. The 2006 Tour is scheduled to be held from February 19 through 26, 2006 and the Host Stage is scheduled to be held on February_, 2006. - 1 - �y 3 ATTACHMENT 1 Host accepts such license and agrees to exercise such license to host the Host Stage and to undertake and perform the Host Obligations, as defined hereinafter and as set forth more specifically in Section 4 of this Agreement. The Host Stage shall be held at a location in City which shall be subject to the prior review and approval of AEG Cycling and Medalist Sports (the "Host Stage Venue"). 2. Term. The term of this Agreement shall begin as of the date first set forth above (the "Effective Date") and, unless earlier terminated in accordance with the terms set forth herein, shall continue through and including March 31, 2006 (the "Term"). 3. CITY. City shall be subject to the following requirements: a. General. At all times during the Term of this Agreement, City will not discriminate in any way on the basis of age, sex, race, national origin, handicap, religion or any other characteristic protected by law, in the conduct of its activities. b. Structure. City will be led by one or more chairperson(s) who will be primarily responsible for performance of City's obligations under this Agreement. Such chairperson(s) shall ensure that the City's representatives relating to Tour include individuals with experience in the following areas and whose responsibilities could be as follows for the Host Stage in City (Cities have option to have one individual handle more than one responsibility): (1) Sponsorship/Sales Director; (2) Operations Director (3) Finance Director; (4) Media& Public Relations Director; (5) Medical/EMT Coordinator; (6) Technical Director; (7) Volunteer Director; (8) VIP/Hospitality Director; (9) School/Community Outreach/Ancillary Events Director; and (10) Liaison with Lifestyle Festival (if applicable) 4. Host Obligations. In consideration of the license granted by AEG Cycling to host the Host Stage as set forth in Section 1 and the Host Benefits as set forth in Section 5 of this Agreement and in addition to those other obligations set forth in this Agreement, Host agrees to undertake and perform the following obligations (collectively, the "Host Obligations"): a. Implementation in Accordance with Planning Manual. Host shall provide assistance in accordance with the 2006 Planning Manual for the Tour to be furnished by AEG Cycling. - 2 - �y� ATTACHMENT I b. Publicity and Promotion. Host shall use its best efforts to publicize and promote the Tour and the Host Stage through all local media. c. Host Obligation Specifications. Provide the following for the Host Stage in City, at the sole expense of Host, all in accordance with the operational and technical specifications set forth in Exhibit "A" (collectively, the "Host Venue Requirements"): (1) Auxiliary Space and Equipment for Tour Requirements: Those types of areas, premises and equipment for the time period designated on Exhibit "A"; (2) Police Services: Local police services to work in coordination with the California State Patrol and California Department of Transportation, as well as Tour representatives and City volunteers, to provide for safe road closure, fixed-post positions, traffic and crowd control and general public safety; (3) Public Works and Road Services: Support police efforts to ensure road closure and course safety; (4) Permits: All local permits for operation of the Tour in Host's locale and presentation of the Host Stage,including but not limited to special event permits, parking permits, road closure and use permits, alcohol permits, and concession sales permits; (5) EMS/EMT Services: Emergency medical services and emergency medical technicians to serve the general public at and on the day of the Host Stage in City; (6) Portable and/or Public Restrooms: Portable (e.g., port-o johns) or public restroom facilities on the day of the Host Stage in a number and location to be determined by Tour representatives; (7) Waste Management/Trash Removal: Waste management and trash removal services following conclusion of the Host Stage in City; and (8) Volunteers: Recruitment of that number of volunteers designated on Exhibit"A"to this letter to assist local police and Tour personnel with various functions to be designated by Tour representatives. Host will be responsible for the selection and training of its volunteers. All volunteers will be expected to perform their assigned duties and services in a professional and highly competent manner, to the best and full limit of their abilities at all times and in accordance with the highest quality standards, applicable law and the rules and regulations established by Host, Medalist and AEG Cycling. All volunteers will be required to sign the standard Volunteer Waiver and Release of Liability, Assumption of Risk and Indemnity Agreement form for the Tour. d. Tour Course Layout and Host Stage Venue. Host will assist Medalist and AEG Cycling in obtaining a design and layout of that portion of the City and county (if - 3 - ATTACHMENT I applicable) through which the Tour course will run and provide access to such course without imposition of any site fees. e. Ambush-Free Zone. Host agrees to work with AEG Cycling and Medalist to create a zone which consists of the Host Stage Venue and a radius around the Host Stage Venue (the "Ambush-Free Zone") that shall be free from temporary merchandise vending,temporary advertising, and temporary signs and inflatable items. Nothing herein shall obligate Host to take any actions as it relates to permanent retail establishments in the Ambush-Free Zone. The parameters of the Ambush-Free Zone should be within a 1-block-radius of the Start/Finish area. f. Ambush Marketing. Host agrees to use its commercially reasonable efforts to: (1) minimize the "ambush marketing" of Tour sponsors and local sponsors in and around City and the Host Stage Venue during the Tour; (2) prevent Commercial Exploitation Rights (as hereinafter defined) identified with City from being granted by any governmental agency to any entity that is not a Tour sponsor during the period commencing two (2) weeks prior to, through Tuesday following the conclusion of the Tour; and (3) prevent other City-controlled and conflicting major sporting, civic or cultural events from being scheduled in City during the week prior to, through the week following, the Tour, unless such major sporting, civic or cultural events are approved in writing by AEG Cycling and under such conditions as Medalist and AEG Cycling may specify. g. Merchandise Counterfeiting and Trademark Enforcement. Host shall cooperate with AEG Cycling in preventing unauthorized use of the Tour Marks, admissions for the Host Stage and other intellectual property and the sale or distribution of unlicensed merchandise bearing the Tour Marks or any other reference to the Tour. Such commitment shall apply and be in force during the Term of this Agreement, particularly with respect to the period beginning February 1 prior to the Tour and continuing through thirty (30) days following the Tour. Host will cooperate with AEG Cycling by permitting AEG Cycling the right to pursue (at its expense) legal enforcement measures to prevent unauthorized use of the intellectual property regarding the Tour, including but not limited to action against any seller or distributor of unlicensed merchandise. Host, in conjunction with such appropriate governmental entities, will help to identify and communicate information to AEG Cycling regarding unauthorized use of the intellectual property of the Tour, including but not limited to sales or distribution of unlicensed merchandise. The decision to pursue civil legal action or settle claims against an unauthorized user of the intellectual property of AEG Cycling or against a seller or distributor of unlicensed merchandise will be at the sole discretion of AEG Cycling. h. Media and Marketing Plan Cooperation. Host will cooperate with the media and marketing plan of AEG Cycling and its contractors, Medalist and GolinHarris, including accommodating television broadcasters, sponsors, and other persons and entities to whom and to which AEG Cycling has granted and will grant rights. -4 - // ATTACHMENT 1 i. Tour Sponsor Recognition.tion. Host agrees that Tour sponsors shall have the right to have recognition and visibility at the Host Stage Venue and that AEG Cycling shall determine placement of signage, recognition and visibility. j. Ancillary Events. Before staging any ancillary events in connection with the rights licensed by AEG Cycling as set forth in this Agreement, Host shall obtain the prior written approval of AEG Cycling and Medalist for the type, location and anticipated size of the event as well as sponsors. k. Sale of Merchandise. Host agrees that no merchandise other than that designated by AEG Cycling will be sold on-site at the Host Stage Venue during the Tour without the prior written consent of AEG Cycling. 1. Reference to Name of Tour. Host shall refer to the Tour by the exact name supplied by AEG Cycling from time-to-time, including any title or presenting sponsor identification (should title or presenting sponsorship rights be granted), and shall include, in all agreements that Host may enter into with third parties, a requirement that all third parties utilize the exact name for the Tour supplied by AEG Cycling from time- to-time. Notwithstanding anything to the contrary herein, if AEG Cycling changes the name or logo of the Tour after Host has created Tour related identification, Host shall not be required to recreate the Tour related identification. in. Proposed Host Contracts. Host shall submit to AEG Cycling for prior review and approval, such approval not to be unreasonably withheld, denied or conditioned, all material contracts that Host proposes to enter into with respect to: (1) the obligations undertaken by Host in connection with the Tour; and (2)Host's organization of any ancillary events. All such proposed Host contracts shall be subject to the terms of Section 8 of this Agreement. n. Anti-Gouging Provisions. Host shall exercise best efforts to make sure that hospitality services (including lodging and restaurants) are provided at reasonable prices for visitors and tenants. o. Cycling Requirements. Host will undertake to respect the minimum requirements [BOB TO CONVEY THESE MINIMUM REQUIREMENTS TO CITIES] for the sport of cycling as defined by the various governing organizations over the sport of cycling. p. Guidelines and Amendments. All services and other activities required to be performed or provided by Host described in this Agreement will be performed or provided in compliance with all reasonable and customary guidelines, standards, policies and directives (collectively, "Guidelines") developed and issued by Medalist and AEG Cycling from time to time. Host recognizes that, while the contents of the Planning Manual issued by Medalist represents the current position of Medalist and AEG Cycling on such matters, such material may evolve as a result of technological and other changes, some of which may be beyond the control of the Parties to this Agreement. Medalist and - 5 - e " — 7 ATTACHMENT � AEG Cycling reserves the right to propose amendments to this Agreement to address such changes. Should amendments to the Agreement or Guidelines result in adverse effects on the financial or other obligations of Host, it will so inform AEG Cycling in writing and AEG Cycling will then negotiate with Host in order to address such adverse effects in a mutually satisfactory manner. q. Progress ss Reports. Except to the extent any such dates occur after the execution of this Agreement, on November 31, December 31 and January 28, during the Term of this Agreement, Host will submit to Medalist and AEG Cycling written progress reports describing the status of its plans relating to the Host Stage and the Host Stage Venue and any related events, as well as copies of committee meeting minutes. Such periodic progress reports shall include, but not be limited to, information on: (1) the local sponsorships sold by Host and the status of efforts to present local sponsorship opportunities to various prospects; and(2) other revenues that Host has generated and expects to generate to pay the costs of discharging its obligations under this Agreement. r. Promotion of Goodwill. Host agrees to conduct the activities contemplated by this Agreement and the Planning Manual in such a way as to promote the goodwill associated with the Tour, the Host Stage and the Host Stage Venue, AEG Cycling, Anschutz Entertainment group, Inc. ("AEG"), Medalist, the State of California, and the sponsors of the Tour, and will not at any time disparage the good name, reputation, or image of the Tour, the Host Stage and the Host Stage Venue, AEG Cycling, AEG, Medalist, the State of California, or the sponsors of the Tour. This section shall not be interpreted to preclude any action or proceeding by Host to enforce or defend its rights under the Agreement and..shall not preclude Host or its representatives from communicating information, which Host reasonably determines to be factually accurate, pertaining to the Tour, its organizers or sponsors. s. Credentials. AEG Cycling and its contractors shall be responsible for producing credentials of all types for the Tour, including the Host Stage and Host Stage Venue and further including credentials for members of the media and operational personnel, which credentials shall be produced at the sole expense of AEG Cycling; AEG Cycling shall be responsible for all decisions regarding to whom media, VIP and operational credentials should be issued and shall establish all rules and regulations regarding media access to the Tour,the Host Stage and the Host Stage Venue.. t. Intentionally Omitted. u. Other Services. Host will provide those other services and undertake those other obligations set forth in Exhibit"A" attached hereto and incorporated herein by this reference, as well as those that may be reasonably requested by AEG Cycling after consultation with Host. 5. Host Benefits. In consideration of the agreement by Host to undertake and perform the Host Obligations, AEG Cycling agrees to provide the following recognition - 6 - ATTACNrdENT i and benefits to and for the benefit of Host (collectively referred to as the "Host Benefits"): a. Recoanition. Include recognition for Host in the official Tour Guide,Tour web site, and in a press conference announcing that Host has agreed to serve as the host for the Host Stage of the Tour; b. Hospitality. Provide a designated number of credentials for and grant access to VIP hospitality area that AEG Cycling intends to create; c. Local Sponsorship. Provide local sponsorship opportunities for Host to utilize, as a means of fundraising, in accordance with the terms of Section 7 of this Agreement; and d. Ancillary Events. Establish activities ancillary to the Host Stage within City for the promotion of the State of California and Host, subject to the prior review and approval of AEG Cycling. 6. Financial. a. Tour Revenues. Host acknowledges and agrees that AEG Cycling shall be entitled to retain all revenues attributable to the Tour, the Host Stage and the Host Stage Venue, except as may be specifically set forth in Sections 6c and 7 of this Agreement. b. Expenses. Host agrees that it shall be responsible for the entire cost and expense of undertaking and performing those Host Obligations listed in Section 4(c) of . this document and in otherwise discharging its obligations under this Agreement. c. Local Revenues. (1) Parking. Host may offer parking for spectators for the Host Stage. Host may retain all revenues from such parking and shall be responsible for all parking expenses. (2) Food and Beverage Concessions. Subject to certain VIP hospitality to be offered exclusively by AEG Cycling, Host may offer food and beverage concessions at the Host Stage Venue for purchase. Host may retain all revenues derived from food and beverage concessions and shall be responsible for all expenses attendant to such concessions. (3) Ancillary Events. Host may create, organize and present events ancillary to the Host Stage, provided AEG Cycling and Medalist has approved such events in advance in writing, and Host may retain all revenues generated thereby. Host shall be responsible for all expenses of creating, organizing and presenting such ancillary events. - 7 - Cy- 9' ATTACHMENT 9 7. Local Sponsorships. Host acknowledges and agrees that AEG Cycling holds and retains superior rights to grant sponsorships for the Tour, including for a title and presenting sponsor as well as for sponsorships which will grant recognition for the entire Tour(collectively, the "Tour Sponsors"). Notwithstanding the foregoing, AEG Cycling grants to Host a license to solicit and secure local sponsors to support the activities of Host in connection with the Host Stage, in accordance with the following terms and conditions: a. Designation. Each local sponsor may be given the designation "Local Stage Sponsor", to the exclusion of any other sponsorship designation. A Local Stage Sponsor may neither be referred to nor describe its involvement with the Host Stage by any other designation, including but not limited to a sponsor of the Tour or a local sponsor of the Tour. b. Sponsorship Levels. Host may create one or more sponsorship levels for Local Stage Sponsors, including a local presenting sponsor. . c. Local Sponsorship Benefits. Host shall be able to provide Local Stage Sponsors with those local sponsorship benefits set forth in Exhibit"B" ("Local Sponsorship Formulation") attached hereto. d. Local Sponsorship Guidelines. Sale of Local Stage Sponsor rights shall be subject to the following guidelines in Exhibit `B"-(the "Local Sponsorship Formulation Package"): (1) Reserved Tour Sponsor Categories. Host acknowledges that AEG Cycling has retained the exclusive right to sell sponsorship rights in specific sponsorship categories to Tour Sponsors ("the Tour Sponsor Categories"). A listing of the Tour Sponsor Categories is set forth on Exhibit "C". Host acknowledges that it may not sell local sponsorship rights to become a Local Stage Sponsor to any company which manufactures, markets or distributes products or services in any of the Tour Sponsor Categories, such right being reserved to AEG Cycling for Tour Sponsors. (2) AEG Cycling Approval. AEG Cycling shall have the right of prior review and prior written approval over the identity of all proposed Local Stage Sponsors as well as recognition and benefits to be provided by Host to such Local Stage Sponsors. Host acknowledges that such review and approval is necessary to avoid conflicts between Tour Sponsors and Local Stage Sponsors. (3) Sponsorship Priority. The title sponsor of the Tour as well as all other sponsors of the Tour designated by AEG Cycling shall have priority over and rights superior to that of any local sponsor. (4) Submission of Materials to AEG Cycling. Host must submit all prospective sponsor lists and packages, art work, copy and designs to AEG Cycling for approval in advance. - 8 - r ATTACijr4EiVr (5) Use of Tour Marks. Host has no authority to grant a sublicense to and Local Stage Sponsors shall have no right to use the Tour Marks at any time. (6) Recognition of Tour Sponsors. Host shall facilitate that recognition of Tour Sponsors as designated by AEG Cycling and Benefits List. (7) No Other Recognition. Local Stage Sponsors shall not receive any endorsements from individual athletes participating in the Tour without the involved athlete's prior permission, nor will local sponsors be guaranteed broadcast exposure of any type. 8. Required Clauses. Notwithstanding the obligations of Host pursuant to Section 41n of this Agreement, Host agrees that, in each and every transaction that either City or LOC enters into with regard to the Tour, the Host Stage, the ancillary events, or rights related to either the Tour, the Host Stage, or the ancillary events, the following required clauses will be incorporated: a. Commercial Identification Prohibition. Unless otherwise agreed in writing by AEG Cycling, all parties contracting with or providing goods or services to Host in connection with the Host Stage or the Tour and/or any ancillary events related thereto must agree that neither they nor their affiliates, agents, representatives, employees, suppliers or subcontractors shall commercially exploit in any manner the nature of their transaction with goods and/or services provided to Host for the Host Stage or the Tour, including without limitation: (1) by referring to the transaction or the goods or services, Host, the Host Stage or the Tour and/or events related thereto in any sales literature, advertisements, letters, client lists, press releases, brochures or other written, audio or visual materials; and (2)by using or allowing the use of the Tour Marks or any other service mark, trademark, copyright or trade name now or which may hereafter be owned or licensed to signify the Tour in connection with any service or product: or(3) by otherwise disclosing their affiliation with Host or the Host Stage or the Tour and/or events related thereto for a commercial purpose. b. Clearances and Licenses. All parties contracting with or providing goods or services to Host in connection with the Host Stage or the Tour or events which Host hosts or associates with during the Host Stage and/or events related thereto must agree that they are responsible for providing all clearances, licenses, permissions and consents (including without limitation all music clearances, synchronization rights, union and guild fees and the like) as may be necessary for the presentation of all such events, to the extent permitted by AEG Cycling, in any and all media and in any and all forms, whether now known or hereafter developed. c. Indemnification. Every party contracting with or providing goods or services to Host in connection with the Host Stage or the Tour and/or events related thereto must agree to indemnify, defend and hold harmless AEG Cycling, AEG, Medalist, GolinHarris, the State of California, Union Cycliste Internationale ("UCP'), - 9 - ATTACHMENT � Amgen, Inc., and Tour Sponsors, and their respective parent, subsidiary, and affiliated companies and each of their respective shareholders, members, trustees, partners, officers, directors, agents, volunteers, employees, and other representatives(collectively, the "AEG Cycling Parties")from and against any claims, demands, damages, liabilities, lawsuits, losses or expenses, including without limitation, interest,penalties, reasonable attorney's fees, and all amounts paid in the investigation, offense or settlement of any or all of the foregoing ("Claim" or"Claims") resulting from, arising out of or in connection with the contracting parties' obligations to Host or the provision of goods or services to Host. d. Compliance with Law. Every party contracting with or providing goods or services to Host in connection with the Host Stage or the Tour and/or events related thereto must agree to comply with all laws, ordinances, orders, rules and regulations (state, federal, municipal or promulgated by other agencies or bodies having or claiming jurisdiction) applicable to the performance of such party's obligations to Host. e. Exculvation Clause. Every party contracting with or providing goods or services to Host in connection with the Host Stage or the Tour and/or events related thereto must agree to look solely to the assets of Host for any recourse, and not those of AEG Cycling or the AEG Cycling Parties (as defined in Section 8c above). f. Insurance. Every party contracting with or providing goods or services to Host in connection with the Host Stage or the Tour and/or events related thereto must agree to maintain, at no cost to AEG Cycling or the AEG Cycling Parties, appropriate insurance coverage for Claims arising out of the contracting party's operations, personnel, products and services. All such insurance provided by each contracting party shall be (1)primary to and non-contributory with any insurance maintained by Host, AEG Cycling and the AEG Cycling Parties; (2) shall be written by insurance companies with ratings of"A" or better in the latest edition of the A.M. Best key rating guide; and (3) shall provide that coverage may not be materially changed, reduced or cancelled unless thirty (30) days prior written notice thereof is furnished to Host and AEG Cycling. All liability policies shall be endorsed to name Host, AEG Cycling, Medalist, Amgen, Inc., and the AEG Cycling Parties as Additional Insureds, and shall include a waiver of subrogation in favor of the Additional Insureds. Each contracting party shall be solely responsible for the costs of all deductibles under such policies and shall remain solely and fully liable for the full amount of any Claims not covered by insurance. Each contracting party shall provide Host and AEG Cycling with certificates of insurance certifying that the appropriate insurance is in place and that the policies have been properly endorsed to meet the insurance requirements as set forth above. 9. Licenses to Use Marks. a. Tour Marks. - 10 - ATTACIgAENT (1) Acknowledgements Regarding Tour Marks. AEG Cycling retains the rights to sell title and presenting sponsorships in and to the Tour and, in such event, to incorporate the name and/or marks of such title and/or presenting sponsor into the Tour Marks or to develop new marks and logos for the Tour, acknowledging such title and/or presenting sponsor's relationship with and support for the Tour. Host acknowledges the foregoing and that the term "Tour Marks" as used herein may also refer to the Tour Marks as such may be expanded to include the name and/or marks of a title and/or presenting sponsor of the Tour. Upon being advised by AEG Cycling and Medalist of a change to the Tour Marks in the event of a sale of title or presenting sponsorships, Host agrees to utilize the updated Tour Marks with the name and/or marks of a title and/or presenting sponsor, all as designated by AEG Cycling. (2) License to Use Tour Marks. AEG Cycling hereby grants to Host a limited non-exclusive license to use the name, logos, trademarks, service marks, designs, product and service identification, artwork and other symbols and distinctive indicia associated with the Tour and identified in Exhibit"C" (the "Tour Marks") during the Term of this Agreement, in accordance with the terms of this Agreement and the Tour Marks Guidelines set forth in Section 9a(6) hereinbelow, solely at or in connecting with the site of the Host Stage, including the Host Stage Venue. (Such Exhibit "C" to be provided within reasonable timeframe upon execution of this Agreement). The foregoing license is subject to the right of AEG Cycling to review and approve in advance all such uses of the Tour Marks. Host shall have no right to assign, license or"pass-through" rights to use the Tour Marks to any other person or entity. In exercising this license to use the Tour Marks and in each and every reference to the Tour, Host shall utilize the Tour Marks and the exact name of the Tour designated by AEG Cycling, which shall include the name of any title and/or presenting sponsor. The Parties acknowledge and agree that, upon the expiration or termination of the Term of the Agreement, Host shall cease to use the Tour Marks. (3) License Does Not Extend to Merchandise. Host shall not manufacture or sell, or license the manufacture or sale of, any promotional or other merchandise which bears the Tour Marks. (4) Acknowledgements Regarding Goodwill. Host acknowledges the great value of goodwill associated with the Tour Marks. Host acknowledges that the goodwill attached to the Tour Marks belongs exclusively to AEG Cycling. Host agrees that any and all goodwill and other rights that may be acquired by the use of the Tour Marks by Host shall inure to the benefit of AEG Cycling. (5) No Disparagement by Host. Host will not, at any time, disparage, dilute or adversely affect the validity of the Tour Marks or take any action, or otherwise suffer to be done any act or thing which may at any time, in any way materially adversely affect any rights of AEG Cycling in or to the Tour Marks, or any registrations thereof or which, directly or indirectly, may materially reduce the value of the Tour Marks or detract from their reputation. This section shall not be interpreted to preclude any action - 11 - � y J AIIA ChIffiff or proceeding by Host to enforce or defend its rights under this Agreement and shall not preclude Host or its representatives from communicating information, which Host reasonably determines to be factually accurate, pertaining to the Tour, its organizers or sponsors.. (6) Tour Marks Guidelines. Any use of the Tour Marks during the Term shall be further subject to the following conditions and limitations (collectively, the "Tour Marks Guidelines"): (a) The Tour Marks shall be used in accordance with the Amgen Tour of California Graphics Standards Manual, published by AEG Cycling from time-to-time; (b) Host shall not use the Tour Marks in any manner that is misleading or that reflects unfavorably upon the reputation of the Tour, AEG Cycling, AEG, Medalist, Amgen, Inc., the State of California or any competitor in the Tour or in any manner that is contrary to applicable laws and regulations, including, without limitation, those relating to truth in advertising and fair trade practices; (c) Host shall not (i) permit any tradename or mark of a third party to appear in conjunction with Host's materials that display any of the Tour Marks; or(ii)participate with any third party in a promotion using the Tour Marks or permit the Tour Marks to be used in a manner that could be reasonably interpreted as a promotion or endorsement of a third party's products or services; (d) Host shall not use the Tour Marks without the appropriate trademark or copyright designation as required by AEG Cycling; (e) Host acknowledges that its selection as a partner is not based upon the results of any quality comparison between Host and any other municipality within the State of California and agrees that it shall not represent otherwise to any third party or use the expressions "selected", "approved", "warranted", "preferred", or"consented to" by AEG Cycling or AEG, or the Tour or any similar endorsement; (f) Host shall not use the license granted under this Agreement in any comparative advertising;and (g) Host shall not, after the expiration or termination of this Agreement, use any slogan or graphic device that was developed for use in conjunction with the Tour Marks if such slogan or graphic device implies an ongoing association with the Tour. b. Host Marks. - 12 - ATTACHMENT I (1) License to Use Host Marks. Host hereby grants to AEG Cycling a limited non-exclusive license to use the name, logos, trademarks, service marks, designs, product and service identification, artwork and other symbols and distinctive indicia of Host and identified in Exhibit"D" attached hereto (the "Host Marks") during the Term of this Agreement in accordance with the terms of this Agreement and the Host Marks guidelines in accordance with Section 9b(2) of this Agreement, specifically to provide Host with the Host Benefits. The foregoing license is subject to the right of Host to review and approve in advance all such uses of the Host Marks. AEG Cycling shall have no right to assign, license or"pass-through" rights to use the Host Marks to any party, except as necessary to fulfill its obligations set forth in this Agreement. The Parties acknowledge and agree that, upon the expiration or termination of the Term of the Agreement, AEG Cycling shall discontinue any use of the Host Marks and AEG Cycling may continue to use the Tour Marks. (2) Host Marks Guidelines. AEG Cycling shall utilize the Host Marks pursuant to the license granted herein in accordance with those graphics standards supplied by Host to AEG Cycling in writing from time-to-time. 10.Trademarks. a. Tour Marks. (1) The Tour Marks, specifically including but not limited to the words "Amgen Tour of California", are and shall remain the property of AEG Cycling and AEG Cycling shall take all steps reasonably necessary to protect such Tour Marks, which steps may include registrations through the United States Patent and Trademark Office ("PTO") and foreign registrations, as it deems desirable and through reasonable prosecution of infringements. (2) The rights licensed by AEG Cycling to Host with respect to use of the Tour Marks shall convey license rights only and shall convey no rights of ownership in or to the Tour Marks. (3) AEG Cycling represents and warrants that it has the right to use the Tour Marks, specifically including but not limited to the words "Amgen Tour of California", and to license the use of the Tour Marks to Host as set forth in Section 9a of this Agreement. (4) AEG Cycling (as well as Amgen) shall own all right, title and interest in and to the Tour Marks. AEG Cycling shall have the right to take all steps reasonable necessary to protect the Tour Marks through PTO registrations and such foreign registrations as it deems desirable and through reasonable prosecution of infringements. AEG Cycling shall be the record owner of all such registrations for the Tour Marks. Host shall cooperate as reasonably necessary to assist AEG Cycling in obtaining such trademark protection and in prosecuting any alleged infringements of the Tour Marks. - 13 - s'0{ 1TrS�L+a"�Upfp�'9�� b. Host Marks. (1) The Host Marks are and shall remain the property of Host and Host shall take all steps reasonably necessary to protect such Host Marks through the PTO and foreign registrations as it deems desirable and through reasonable prosecution of infringements. (2) Host represents and warrants that it has the right to use the Host Marks and to license the use of the Host Marks to AEG Cycling for use in connection with the Tour and to provide the Host Benefits. (3) The rights granted to AEG Cycling by Host with respect to use of the Host Marks shall convey license rights only and shall convey no rights of ownership in or to the Host Marks. 11.Merchandising. The Parties acknowledge and agree that AEG Cycling shall be the sole licensor of all Tour-related merchandise bearing the Tour Marks and/or otherwise relating to the Tour in any way (the "Tour-Related Merchandise"). Host shall have the right to purchase Tour-Related Merchandise from the licensee for such Tour"- Related Merchandise at amount to be agreed upon by and among AEG Cycling, Host and such licensee,but shall have no right or license to manufacture or distribute Tour-Related Merchandise or any other merchandise bearing the Tour Marks. 12. Approvals. a. Host agrees to submit to AEG Cycling for its prior written approval all proposed uses of the Tour Marks that Host wishes to make pursuant to the limited license granted to Host in this Agreement, including but not limited to submission of representative samples of all advertising, promotional and other materials to be used in connection with Host's products and services as well as any premiums that Host may wish to use containing the Tour Marks. If Host's request is not responded to by AEG Cycling within ten (10) business days after AEG Cycling has received the material from Host,Host shall provide written notification to AEG Cycling of such fact and AEG Cycling agrees that any such proposed materials shall be deemed denied if Host's request is not responded to within five (5) business days following receipt of such written notice. Host shall not distribute any material without the prior written approval of AEG Cycling. b. Host shall supply free of charge to AEG Cycling for administrative and archival purposes two (2) originals of all advertising,promotional or other materials in connection with the products and services to be used by Host in connection with the licenses granted under this Agreement. c. All requests for approval, including representative samples of all advertising, promotional and other materials shall be sent to AEG Cycling at the address - 14 - ATTR c I41 LI 9- to� for notices under this Agreement to the attention of the individual designated to receive notices for AEG Cycling. 13.Broadcast and.Media Rights; Other Commercial Exploitation of Tour. As between Host and AEG Cycling, AEG Cycling controls all rights to distribute, promote, market and otherwise commercially exploit the Tour and the Host.Stage by means of any and all audio, visual and audiovisual media of all types, including but not limited to television, radio, Internet and print, and wireless devices as well as with respect to sponsorship, licensing,hospitality, merchandising, and other marketing rights with respect to the Tour("Commercial Exploitation Rights") and that Host will not purport to grant or license any such rights to a third party without the prior express written approval of AEG Cycling. 14. Ownership and Protection of Intellectual Property. a. Ownership of Intellectual Property. (1) Subject to the terms of Section 10 of this Agreement, each Party shall own all right, title and interest in and to all intellectual property created by or on behalf of such Party in connection with this Agreement, including without limitation, all logos, names, ideas, concepts, creative materials, promotional materials, advertising, graphics, including all copyrights and proprietary rights therein, and any inventions and discoveries first conceived or developed, whether or not protected by patent, trade secret or copyright, subject to the ownership rights of the other Party to such other Party's trademarks to the extent that such are incorporated into such intellectual property (such property being collectively referred to as the "Intellectual Property"). (That Intellectual Property which has been created by or on behalf of Host is referred to as the "Host Intellectual Property" and that Intellectual Property which has been created on behalf of AEG Cycling is referred to as the "AEG Cycling Intellectual Property".) (2) Notwithstanding the foregoing, the Parties acknowledge and agree that the Tour Marks and the distinctive colors, concepts, indicia and look displayed by AEG Cycling throughout the Tour and by AEG Cycling in its regular business operations and materials shall constitute AEG Cycling Intellectual Property and therefore be owned by AEG Cycling. Host expressly acknowledges that the Parties have agreed that all copyrightable aspects of the AEG Cycling Intellectual Property are to be considered "works made for hire"within the meaning of the Copyright Act of 1976, as amended(the "Act"), of which AEG Cycling is to be the "author" within the meaning of such Act. All such copyrightable works, as well as all copies of such works in whatever medium fixed or embodied, shall be owned exclusively by AEG Cycling as its creation and Host expressly disclaims any interest in any of them. Host expressly acknowledges that it is not a joint author and that the AEG Cycling Intellectual Property and all other work created by AEG Cycling hereunder are not joint works under the Act. (3) In the event (and to the extent) that any AEG Cycling Intellectual Property or any part or element thereof is found as a matter of law not to be "work made - 15 - i r� �� for hire" within the meaning of the Act, Host hereby conveys and assigns to AEG Cycling the sole and exclusive right, title and interest in the ownership to all such AEG Cycling Intellectual Property, and all copies of it, without further consideration, and agrees to assist AEG Cycling to register, and from time to time to enforce, all patents, copyrights, and other rights and protections relating to the AEG Cycling Intellectual Property in any and all countries. To that end, Host agrees to execute and deliver all documents requested by AEG Cycling to evidence any assignment as well as otherwise in connection therewith. (4) Host understands that the term"moral rights" means any rights of paternity and integrity, including any right to claim authorship of a copyrightable work, to object to a modification of such copyrightable work and any similar right existing under the judicial or statutory law of any country or under any treaty, regardless of whether or not such right is referred to as a"moral right",including, without limitation, the rights of attribution and integrity in works of visual art pursuant to 17 U.S.C. § 106A. Host irrevocably waives and agrees never to assert any moral rights Host may have in the AEG Cycling Intellectual Property, even after any termination or expiration of this Agreement. (5) The Parties agree to affix appropriate copyright and trademark notices as reasonably designated by the other; together with their own notices as appropriate, on the AEG Cycling Intellectual Property to identify AEG Cycling as the owner of the AEG Cycling Intellectual Property and Host as the owner of the Host Marks. b. Protection of Intellectual Property. (1) Host acknowledges that it has no right, title or.interest in the Tour Marks and that nothing in this Agreement shall be construed as an assignment to Host of any right, title or interest in the Tour Marks, except the license to use of the Tour Marks as provided in this Agreement. (2) Host agrees that AEG Cycling shall have the sole right to determine whether any action should be taken to terminate unauthorized use of the Tour Marks or to settle any proceeding brought by AEG Cycling to terminate such unauthorized use. All proceeds from any enforcement action shall belong exclusively to AEG Cycling. (3) AEG Cycling and Host agree to assist each other in the offense of any proceeding or claim with respect to the use of any Tour Marks by Host in accordance with the terms of this Agreement. AEG Cycling agrees to defend, at its expense, any such proceeding or claim on behalf of Host. Host shall be permitted to retain, at its expense, separate counsel in such offense. 15.Reservation of Rishts. AEG Cycling reserves all rights not expressly licensed to Host under this Agreement. Any and all rights of AEG Cycling, including those in and to - 16 - �y�8 AT the Tour and the Tour Marks, not expressly granted to Host under this Agreement are reserved to AEG Cycling and may be exercised, marketed, exploited or disposed of by AEG Cycling concurrently with the Term of this Agreement in such form and manner as AEG Cycling wishes. Host acknowledges and agrees that this Agreement does not convey or grant to it any rights of ownership in or management of the Tour, AEG Cycling or the Tour Marks. 16. Representations and Warranties. a. By AEG Cycling. AEG Cycling represents and warrants that: _ (1) It has the full right, power and legal authority to enter into and fully perform this Agreement in accordance with its terms without violating the rights of any other person, that there are no other agreements or commitments,oral or written, that will interfere with its full performance hereunder and that it will fully comply with all federal, state and local laws, rules and regulations applicable to the day-to-day conduct of its business and to its obligations and performances hereunder; (2) The Tour Marks do not infringe the trademarks or other proprietary rights of any other person or entity; (3) Any materials created under the control, direction or supervision of AEG Cycling shall be original, shall be owned by AEG Cycling and shall not infringe any third party copyright or trademark; and (4) It will comply with all applicable laws, regulations and ordinances pertaining to the promotion and conduct of the Tour. b. By Host. Host represents and warrants that: (1) It has the full right, power and legal authority to enter into and fully perform this Agreement in accordance with its terms without violating the rights of any other person, that there are no other agreements or commitments, oral or written, that will interfere with its full performance hereunder and that it will fully comply with all federal, state and local laws, rules and regulations applicable to the day-to-day conduct of its business and to its obligations and performances hereunder; (2) Host owns or has the authority to grant to AEG Cycling a license to use the Host Marks; (3) The Host Marks do not infringe the trademarks or other proprietary rights of any other person or entity; (4) Any materials created under the control, direction or supervision of Host shall be original, shall be owned by Host and shall not infringe any third party copyright or trademark;and - 17 - (5) It will exercise its best efforts to ensure that City officials, employees and other representatives and Host officers, directors; employees, volunteers, agents,representatives, and contracted parties promote and protect the goodwill of the Tour and not engage in conduct which is detrimental to the Tour, its Sponsors, AEG Cycling, Medalist and/or the AEG Cycling Parties. This section shall not be interpreted to preclude any action or proceeding by Host to enforce or defend its rights under this Agreement and shall not preclude Host or its representatives from communicating information, which Host reasonably determines to be factually accurate, pertaining to the Tour, its organizers or sponsors. 17.Indemnification. a. B AEG G Cycling. AEG Cycling shall indemnify, defend and hold harmless Host, its affiliates, and their respective officers, directors, partners, shareholders, members; agents, employees, and other representatives (collectively, the "Host Indemnified Parties"), from and against any and all claims, demands, damages, liabilities, lawsuits, losses or expenses, including without limitation, interest, penalties, reasonable attorney's fees, and all amounts paid in the investigation, offense or settlement of the foregoing (the"Claim"or"Claims") arising out of, based on or in any other manner related to: (1) the breach of any representation, warranty, material covenant or obligation of AEG Cycling under this Agreement; (2) any negligent act, negligent omission or willful conduct by AEG Cycling; and (3) any Claim that the Tour Marks or other AEG Cycling Intellectual Property infringe upon any patent, copyright, trademark, trade secret or any other right of a third party. b. By Host. Host shall indemnify, defend and hold harmless AEG Cycling, AEG, Medalist, the State of California, UCI, Amgen, Inc., and Tour Sponsors, and their respective parent, subsidiary and affiliated companies, and each of their respective officers, directors, partners, trustees, shareholders, members, agents,employees, volunteers and other representatives (collectively, the "AEG Cycling Indemnified Parties"), from and against any and all Claims arising out of, based on or in any other manner related to: (1) the breach of any representation, warranty, material covenant or obligation of Host under this Agreement; (2) any negligent act, omission or willful conduct by Host; (3) the products, services, and other deliverables provided by Host and its employees, volunteers, agents, representatives and contractors in carrying out its obligations under this Agreement; provided, however, that Host shall not be responsible for indemnification resulting from road conditions of State of California maintained highways and roads (4)the exercise by Host of its rights and the Host Benefits under this Agreement, including but not limited to any parking, food and beverage concessions, ancillary events or local sponsorships organized by Host; (5) advertiser's liability or other claim arising out of or in connection with the use by Host of the Tour Marks, including but not limited to any claim based upon an allegation of sponsorship or guaranty by AEG Cycling of City; (6) a claim that the Host Marks infringe upon any patent, copyright, trademark, trade secret or any other right of a third party; and (7) the failure or alleged - 18 - cy a� failure by Host to comply with all Laws relating to labor relations, fair employment practices, safety and similar rules and regulations, including without limitation, the requirement of the Occupational Safety and Health Act (OSHA)of 1970 and with all Equal Employment Opportunity (EEO) provisions as required by law, regulation or executive order. Notwithstanding the foregoing, this indemnification shall not extend to or include any claims, damages, suit or attorneys fees arising out of any claim or allegation that any of the routes, roads; trails or other parts of the Tour course were negligently designed, constructed, maintained or selected by an entity other than the Host. Prior approval by AEG Cycling of the use of the Tour Marks or other matters as to which AEG Cycling approval is required under this Agreement shall not affect AEG Cycling's right to indemnification as to such usage. c. Procedure Regarding Indemnification. Each Party shall give the other Party prompt written notice of any Claim coming within the scope of any indemnity expressly set forth in this Agreement. Upon written request of any indemnitee, the indemnitor will assume offense of any such Claim, action or proceeding. The indemnitee shall cooperate with the indemnitor in the investigation, offense and/or settlement of any such Claim. The indemnification obligations in this Section 17 of this Agreement shall survive the expiration and/or termination of this Agreement. 18. Termination. a. Default. Either Party may terminate this Agreement, at its option, upon written notice to the other Party, upon the occurrence of one or more of the following events (the "Termination Events"): (1) Material breach of any covenant, agreement, representation, warranty,term or condition of this Agreement, if such breach has not been waived in writing and if such breach is not cured or remedied by the breaching Party to the other Party's reasonable satisfaction within thirty (30) days after delivery of written notice specifying the nature of the breach, or if the Parties agree that the breach is not capable of being cured or remedied within said thirty (30) days, then within the time period mutually agreed to by the Parties in a jointly approved plan of corrective action developed within thirty (30) days after the delivery of written notice to the breaching Party specifying the nature of the breach; (2) A Party becomes insolvent, fails to pay its debts or perform its obligations in the ordinary course of its business as they become due, admits in writing its insolvency or instability to pay its debts or perform its obligations as they become due, or becomes the subject of any voluntary or involuntary proceeding in bankruptcy, liquidation, dissolution, receivership or general assignment for the benefit of creditors, provided that, if such condition is assumed involuntarily, it has not been dismissed with prejudice within sixty (60) days after its commencement; or (3) A Party is the subject of public controversy of such a magnitude that such Party's association with the other Party pursuant to this Agreement creates a - 19 - Cy negative association for such other Party, in the reasonable judgment of such other Party, in which case the other Party may terminate this Agreement without cost or penalty. b. Effect of Termination. Should either Party terminate this Agreement as a result of a Termination Event set forth in subsection a above, then upon termination of this Agreement, Host's Host Benefits shall terminate and Host shall cease using the Tour Marks. In addition, should such termination result from termination notice given by Host to AEG Cycling from occurrence of a Termination Event of the type set forth in Sections 18a(1) or(2) above, AEG Cycling shall repay to Host all amounts actually expended by Host in performing its obligations hereunder; provided, however that in no event shall AEG Cycling be liable for amounts in excess of$10,000 in the aggregate for any particular Tour. Should termination result from termination notice given by AEG Cycling to Host from occurrence of a Termination Event of the type set forth in Sections 18a(1) or(2) above, Host shall repay to AEG Cycling-all amounts expended by AEG Cycling in licensing to Host the right to host the Host Stage, to provide the Host Benefits, and to relocate the site for the Host Stage. 19. Independent Contractors. AEG Cycling and Host are independent contractors with respect to each other and nothing herein shall be deemed or construed to create any partnership,joint venture or agency relationship between them. Host is simply serving as host to the Host Stage of the Tour under the license of rights granted herein and is agreeing herein to provide certain services and to undertake certain obligations in order to acquire certain marketing rights and benefits. Neither Party shall have any authority to contract or bind the other Party in any manner and shall not represent itself as the agent of the other. 20. Insurance. a. AEG Cycling Provided Insurance. Throughout the Term of this Agreement (including any extensions thereof),AEG Cycling shall provide and maintain, at its expense, the following insurance policies which shall protect the AEG Cycling Parties on a primary basis from any and all Claims arising out of or in connection with respect.to the staging of each Tour and the obligations of AEG Cycling pursuant to this Agreement: (1) Event Liability insurance (inclusive of CGL as well as auto liability) of with limits not less than $1,000,000 each occurrence and $2,000,000 in the aggregate; (2) Workers' Compensation insurance covering AEG Cycling's employees with limits as required by statutory law, including Employer's Liability coverage with limits not less than $500,000 each accident; (3) Umbrella and/or Excess Liability insurance with limits not less than $5,000,000 each occurrence shall apply in excess of and on a following form basis - 20 - r:�I ;—� Li�6 Nva ud i�J nt7�d� y G to the primary Commercial General Liability, Automobile Liability and Employer's Liability policies; and (4) Any other insurance necessary and appropriate for the staging of the Tour as determined by AEG Cycling and Medalist. All such insurance to be maintained by AEG Cycling shall be (1)primary with respect to Claims arising out of the AEG Cycling's staging of each Tour and the obligations of AEG Cycling pursuant to this Agreement; (2) shall be written by insurance companies with ratings of"A" or better in the latest edition of the A.M. Best key rating guide; and (3) shall provide that coverage may not be materially changed, reduced or cancelled unless thirty (30) days prior written notice thereof is furnished to Sponsor. Policies (1) and(2) above shall be endorsed to name Host as Additional Insureds with respect to the negligent acts or omissions of AEG Cycling. At least 15 days prior to each Tour, AEG Cycling shall provide Host with a certificate of insurance certifying that the appropriate insurance is in place and that the policies have been properly endorsed to meet the insurance requirements as set forth above. b. AEG Cycling Optional Insurance. AEG Cycling may, but shall not be obligated to, secure Event Cancellation insurance providing reimbursement of insured losses if any Tour does not take place, in whole or in part, due to any Act of God or other event beyond the control of the AEG Cycling and those other circumstances set forth in Sections 21 and 22 of this Agreement. Covered perils may include adverse weather conditions; natural disasters; outbreak of disease; damage to or loss of venue; unavoidable transportation delays; non-appearance of key participants due to death, injury or illness; situations which pose significant danger to the public or Tour participants; and other causes beyond AEG Cycling's control which are not specifically excluded under the policy. Notable exclusionswill include war, civil commotion, riot, martial law, seizure, or radioactive/nuclear contamination; poor event planning and management; fraud, misrepresentation or concealment. All event cancellation proceeds shall constitute the property of AEG Cycling. AEG Cycling's obligation to secure Event Cancellation insurance is limited to the extent such coverage is available at a reasonable cost in the sole discretion of AEG Cycling. c. Host Provided Insurance. Throughout the Term of this Agreement (including any extensions thereof), Host shall provide and maintain, at its expense, the following insurance policies which shall protect Host, AEG Cycling,Medalist, Amgen, Inc. and the AEG Cycling Parties on a primary basis from any and all Claims arising out of or in connection with the Host's activities, operations, representations and warranties, rights, obligations and duties of Host pursuant to this Agreement: (1) General Liability insurance with limits not less than $1,000,000 each occurrence and$2,000,000 in the aggregate. Such insurance shall include coverage for contractual liability, products-completed operations, personal and advertising injury, - 21 - Cy ' _ l'Js mo��eittlt4'JitJ9 � � � I premises damage legal liability, liquor liability (if applicable), property damage and bodily injury liability (including death); (2) Auto Liability &Physical Damage insurance covering Claims arising out of the use, operation or maintenance of any vehicle (whether owned, non- owned, leased, hired or borrowed)by Host, with limits not less than $1,000,000 each accident combined single limit for bodily injury and property damage; (3) Workers' Compensation insurance covering Host's employees with limits as required by statutory law, including Employer's Liability coverage with limits not less than.$1,000,000 each accident, $1,000,000 disease-each employee and $1,000,000 disease-policy limit; (4) Umbrella and/or Excess Liability insurance with limits not less than $3,000,000 each occurrence shall apply in excess of and on a following form basis to the primary Commercial General Liability, Automobile Liability and Employer's Liability policies; (5) Any other insurance necessary and appropriate for covering the Host's activities, operations, representations and warranties, rights, obligations and duties pursuant to this Agreement. All such insurance to be maintained by Host shall be (1)primary to and non-contributory with any insurance maintained by AEG Cycling and the AEG Cycling Parties; (2) shall be written by insurance companies with ratings of"A" or better in the latest edition of the A.M. Best key rating guide; and(3) shall provide that coverage may not be materially changed, reduced or cancelled unless thirty (30) days prior written notice thereof is furnished to AEG Cycling. Policies(1) and(2) above shall be endorsed to name AEG Cycling and the AEG Cycling Indemnified Parties (as defined in Section 17b of this Agreement) as Additional Insureds with respect to the negligent acts or omissions of Host. At least 15 days prior to each Tour,Host shall provide AEG Cycling with a certificate of insurance certifying that the appropriate insurance is in place and that the policies have been properly endorsed to meet the insurance requirements as set forth above. 21.Force Maieure. In the event that the Tour does not take place or is rescheduled, in whole or in part, due to any Act of God or other event not reasonably foreseeable by the Parties or beyond the control of the Parties which is generally considered an event of force majeure ("Force Majeure"), including without limitation, weather, fire, flood, act of public enemy or terrorism, strike or labor dispute, governmental action or directive or local, regional or national day of mourning, whether such event of Force Majeure has occurred in a community through which the Tour course shall run or not, then AEG Cycling may discontinue provision of the Host Benefits to and for the benefit of Host and Host need not continue to perform those Host Obligations which remain unperformed as -22 - 41,;kyy, t� D i4UN of the date of cancellation or postponement. AEG Cycling shall determine whether the Tour is to be cancelled in whole or in part or postponed due to a Force Majeure event. Should the Tour be cancelled in whole or in part due to an event of Force Majeure, AEG Cycling shall have no further obligation, financial or otherwise, to Host and Host shall have no further obligation to AEG Cycling in connection with the Tour. In the event that the Tour is postponed in whole or in part due to an event of Force Majeure and AEG Cycling intends to reschedule the Tour, AEG Cycling and Host shall discuss in good faith the terms under which such rescheduling should occur. In the event of such cancellation or postponement due to a Force Majeure event, the obligations of AEG Cycling and the rights of Host shall be as specifically set forth in this Section 21 as the sole and exclusive remedy by virtue of such cancellation or postponement. 22. Cancellation or Postponement of Tour for Reason Other than Force Majeure. AEG Cycling shall have the sole and unfettered right to cancel or postpone the Tour or any Host Stage. In such event,Host acknowledges and agrees that AEG Cycling shall have no financial responsibility to Host as a consequence of such cancellation or postponement. In the event of such cancellation or postponement for a reason other than Force Majeure, the obligations of AEG Cycling and the rights of Host shall be as specifically set forth in this Section 22 as the sole and exclusive remedy by virtue of such cancellation or postponement. Upon providing notice of cancellation or postponement, AEG Cycling shall have no further obligation to provide Host with any of the Host Benefits as set forth in this Agreement. 23. Public Announcement. The Parties agree to make a joint public announcement and press release upon in the near future following execution of this Agreement. The Parties agree that the form and substance of such announcement and press release shall be mutually agreed between the Parties. 24. Arbitration. The Parties agree that any dispute between them arising out of, based upon, or relating to this Agreement, shall be resolved exclusively by arbitration conducted in accordance with the Commercial Rules then in effect of the American Arbitration Association. Such arbitration shall be held in Los Angeles, California. Judgment upon the award rendered shall be final and non-appealable and may be entered in a court having jurisdiction. Each Party shall bear its own expenses arising out of any such proceeding, except that the fees and costs of any arbitrator(s) shall be borne equally by the Parties. Notwithstanding the obligations set forth in this Section, AEG Cycling shall be permitted to seek equitable relief to prevent the unauthorized uses of the Tour Marks. 25.Liability of City. City acknowledges and agrees that it shall be responsible for each and every obligation under this Agreement and, therefore, that any liability for breach of any obligation of Host hereunder shall constitute an obligation of City hereunder. 26. Specific Performance. The duties, obligations and responsibilities of the Parties under this Agreement are unique, and, therefore, the Parties agree that monetary damages - 23 - /'YZ/ will not be an adequate remedy for breach of this Agreement. The Parties acknowledge and agree that, in the event of a breach by Host, AEG Cycling will suffer irreparable harm. Therefore, AEG Cycling shall be entitled to the remedy of specific performance, which shall not be the exclusive remedy for any violation of breach of this Agreement. 27. General. a. Assignment. Host may not assign any rights or obligations under this Agreement or this Agreement itself, in whole or in part, without the prior express written consent of AEG Cycling. Notwithstanding the foregoing, AEG Cycling may retain the services of subcontractors to discharge certain obligations under this Agreement. b. Notices. Except as expressly provided to the contrary herein, any notice, consent,report, documents or other item to be given, delivered, furnished or received hereunder shall be deemed given, delivered, furnished and received when given in writing and personally delivered to and received by an officer or designated employee of the applicable Party, to seventy-two (72) hours after the same is deposited in the United States mail, postage prepaid, registered or certified first class mail, return receipt requested addressed as set forth below, or to such other address as either of the parties shall advise the other in writing or sent by confirmed facsimile transmission: If to Host: NAME OF CITY Address City, State Zip Attn.: If to AEG Cycling: AEG Cycling, LLC 1100 S. Flower St, Suite 3200 Los Angeles, CA 90015 Attn: Bob Colarossi with a copy to: AEG Cycling, LLC 1100 S. Flower St, Suite 3200 Los Angeles, CA 90015 Attn: Shervin Mirhashemi, Esq. c. Entire Agreement; Modifications. This Agreement constitutes the entire agreement of the Parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings between the Parties with respect to the subject matter hereof. This Agreement may not be modified, amended or supplemented or - 24- �y otherwise changed, except by a written document executed by an authorized representative of each of the Parties hereto. d. No Waiver of Rights and Breaches. No failure or delay of any Party in the exercise of any right given to such Party hereunder shall constitute a waiver thereof, nor shall any single or partial exercise of any such right preclude other or further exercise thereof or of any other right. The waiver by a Party of any default of any other Party hereunder shall not be deemed to be a waiver of any such subsequent default or other default of any Party. e. Captions. Section headings used in this Agreement are for convenience of reference only and shall not affect the construction of any provision of this Agreement. f. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and authorized assigns. g. Governing Law. This Agreement shall be deemed to be a contract made under the laws of the State of California and for all purposes governed by and construed in accordance with the laws of the State of California. h. Construction of Agreement. Each Party acknowledges that it has participated in the negotiation of this Agreement and that no provision of this Agreement shall be construed against or interpreted to the disadvantage of any Party hereto by any court or other governmental or judicial authority by reason of such Party having or deemed to have structured, dictated or drafted such provision. i. Relationship of Parties. This Agreement shall neither be deemed nor construed to create a joint venture or partnership between AEG Cycling and Host, nor shall this Agreement be deemed or construed as making either Party the agent or representative of the other Party. Neither Party shall have the authority to bind the other Party in any respect. j. Survival. Those covenants, acknowledgments, representations, agreements and obligations contained in Sections 9a(4), 9a(5), 9a(6)(g), 13-16, 17, 18b, 20-22, and 24-27 of this Agreement shall survive the expiration and/or termination of this Agreement. k. Compliance with Law, Rules and Regulations. The Parties agree to comply with all federal, state and local laws, ordinances, orders, rules and regulations applicable to the performance of their respective obligations under this Agreement, both now existing and as such may hereinafter be adopted. 1. Time of Essence._The Parties agree that time is of the essence in performing obligations under this Agreement. - 25 - c gTACHMEN T I in. Exhibits. The documents attached hereto as exhibits are incorporated by reference herein and made a part of this Agreement as if fully set forth herein. n. Severability. The determination that any provision of this Agreement is invalid or unenforceable shall not invalidate this Agreement, all of such provisions being inserted conditionally upon their being considered legally valid, and this Agreement shall be construed and performed in all respects as if such invalid or unenforceable provision(s) were omitted. o. Exclusive Jurisdiction. The Parties agree that, subject to the provisions of Section 24, venue of any judicial action in connection with this Agreement shall lie exclusively in the state or federal courts located in Los Angeles, California. Host accepts, generally and unconditionally, the exclusive jurisdiction of such courts and any related appellate court and irrevocably agrees to be bound by any judgment rendered thereby in connection with this Agreement. Host further agrees that it irrevocably waives any objection it may now have or hereafter have as to the jurisdiction or venue of any such suit, action or proceeding brought in such court or that such court is an inconvenient forum. Host acknowledges that it possesses the requisite minimum contacts with the State of California sufficient to establish jurisdiction over Host in State and Federal Courts in California. p. Further Assurances. The Parties agree to execute and deliver, or cause to be executed and delivered, such instruments and documents as either Party may reasonably request or require to carry out more effectively the purpose and intent of this Agreement. q. Intentionally Omitted. r. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same agreement.. s. No Third Party Beneficiaries. It is expressly understood that there are no third party beneficiaries to this Agreement. IN WITNESS WHEREOF, the Parties hereto have caused their duly authorized representatives to execute this Agreement on their respective behalf, all as of the day and year first above written. AEG CYCLING: AEG CYCLING,LLC - 26 - jj By: Name: Title: HOST: [NAME OF CITY] By: Name: Title: - 27 - cy�9 EXHIBITS A Host Venue Requirements B Sponsorship Formulation: - Benefits List - Tour Sponsor Categories C Tour Marks D Host Marks 28 EXHIBIT A Host Venue Requirements Host Venue Requirements— Stage Finish with a Stage Start Below are the requirements of a community and its Local Organizing Committee (LOC) to host a Stage Finish with a Stage Start of the 2006 Tour de California. Please note that the Tour will make ever effort possible to reduce these requirements through its planning process. Operational Requirements 1. Accommodations • The host venue is required to assist the Tour in securing accommodations for the entourage, teams and team personnel(549 people), advance finish construction crew and advance staff(65 people) and advance start construction crew and advance start staff(36 people), totaling approximately 650 en ogle. This applies to the following: • Night before Stage Finish (advance crew and staff—65 people), requires 40 rooms (15 singles and 25 doubles). Rooms should be at one hotel within close proximity of the Finish Line area. • Night of Stage Finish—585 people(entourage plus start crew -329 people, athletes and team personnel—256 people),requires 360 rooms in the following room configuration: 4 suites, 133 single, 223 double rooms. Rooms should be in no more than 3 properties with at least one hotel having enough capacity for 175 rooms. 2.Meals The host venue is required to assist the Tour in securing a dinner meal the night of the Stage Finish, based on menu specifications provided by the Tour's Operations Director, for the entire entourage of 585 people. The dinner meal should be served at the Headquarters Hotel. • Excluding athletes and team support personnel, a dinner per diem of.$15 (per person) may be provided for staff(approximately 329 people)in lieu of participating in the organized dinner meal that is required for all teams. The host venue should provide a lunch meal the day of the Stage Finish, for the working media (approximately 35 people). The lunch meal should be located at the designated Media Office. The Tour encourages a host venue to consider a local restaurant/vendor to assist with this meal in-kind or as a potential sponsor. The host venue is required to assist the Tour in securing a breakfast meal the morning after the Stage Finish for the following groups: • Athletes and team support personnel only(approximately 256 people). Breakfast should be served at the headquarters hotel. • Start Crew staff(approximately 36 people breakfast should be served at 6:00 AM or 6:30 AM. Based upon early hours, a cash per diem of$6 (per person) is recommended. 3.Auxiliary Space The Tour requires the following auxiliary spaces for use within 24 hours leading up to the Stage Finish: Race Office • Approximately 500— 1,000 square feet Cy�� • Must have power,phone line,and wireless internet access. Operational Requirements Continued Media Office • Approximately 500— 1,000 square feet • Must have power,phone line, fax line and DSL and wireless internet access Press Work Room • Approximately 500— 1,000 square feet.-or can be co-mingled with Media Office • Must have power, DSL and wireless internet access Press Conference • Approximately 1,500 square feet • Theater-style seating for 300 people • Sound System with 7 Microphones and mult-box Medical Office • Suite at the Headquarter Hotel or a meeting room at the Headquarter Hotel with a nearby bathroom Team Parking and Mechanics Work Area • A sizable portion of the Headquarters Hotel parking lot is required • Each team travels with a motor coach,trailer and support vehicle and additional space is needed for mechanics to work on bikes • Access to water and power Staff Parking • Approximately 75 vehicles Bicycle Storage • Approx 1,500 square feet—can accommodate all teams and can be locked Commissaires Meeting Room • Small Conference Room for approx. (8-10)people High-Speed Copiers • The Tour requires the host venue to provide two (2) high-speed copiers, which collate and staple. • Copiers should be delivered and installed in the 1.) Race Office and 2.) Media Office • A copier technician must be on-hand each day,24-hours per day to assist Tour staff with trouble- shooting situations. 5. Flowers u The Tour requires of the host venue eight(8) flower bouquets to be used during the Awards Ceremony. C-! � Technical Requirements 1. Police o Local (City and/or County)police services are the responsibility of the host venue. In coordination with California Highway Patrol (CHP), CalTrans, as well as the Tour's motor and road marshals and in conjunction with the LOC volunteer program, local police provide for a safe road closure, which may include fixed-post positions, traffic control, crowd control, enforcing no-parking zones and maintaining general public safety. 2. Public Works and Road Services ❑ Local Public Works and Road Services are the responsibility of the host venue. These services are necessary to support police efforts to ensure road closure and safety of the course. These services may necessary include detours and detour equipment,barricades, cones, printing/posting of No Parking signs, removal/restoration and street repair. 3. Permits ❑ All city permits and permit requirements for the operation of the event are to be procured by the host venue on behalf of the Tour. They include,but are not limited to: - Special Event Permits Concession Sales Parking Permits Alcohol Permit Road Closure and Use Permits Sound Amplification Banner and Sign Permits Material Distribution Sponsor Expositions 4. Security ❑ It is the responsibility of the host venue to provide outdoor overnight security at each of the hotel properties being utilized by the Tour's entourage. In addition to attractive vehicles, the equipment of the staff and teams is very expensive. 5. EMT/EMS Services ❑ It is the responsibility of the host venue to provide EMT/EMS services for the general public the day of the Stage Finish and the Stage Start. ❑ Please note that the Tour provides medical services for the athletes,team support and staff personnel. ❑ Placement of EMT/EMS services will be decided by the Tour's Technical Director. B/7- ff Technical Requirements Continued 6. Port-o-Johns ❑ It is the responsibility of the host venue to provide port-o john services, or public restrooms, during the day of the Stage Finish and the Stage Start. ❑ Number of units(approx. 25,plus 2 handicap for Finish and 10 units, 2 handicap for Start)and placement of units to be mutually agreed upon by the host venue and the Tour's technical Director. 7. Waste Management/Trash Removal ❑ In consultation with the Tour, it is the responsibility of the host venue to provide waste management/trash removal services following the conclusion of the Stage Finish and Stage Start. ❑ It is the responsibility of the host venue to have this trash removed from the event site (it is recommended that the host venue may want to have a dumpster delivered to the site the day before the event—placement of this dumpster determined by the Tour's Technical Director). Volunteer Program ❑ Each race scenario must have volunteers to assist the local police and Tour personnel in providing a safe road closure. A typical Stage Finish venue will require approx. 250-300 volunteers and a Stage Start requires approximately 100-150 volunteers. The number of volunteers will be decided once the course has been finalized and properly approved by local authorities. ❑ In addition to providing volunteer course marshals, volunteers will also be assigned to assist with the following functions: > Media Office > Working Press Room > Press Conference > Awards > Hospitality > Anti-Doping/Drug Control > Economic Impact Survey-takers > Race Office > Site Decoration/Restoration ❑ The Tour's Volunteer Coordinator will conduct an Orientation for the Course Marshals and a separate meeting for the other Volunteer roles,prior to the Stage Start and Finish, as well as assist the host city Volunteer Coordinator on-site with assignment and T-shirt distribution. ❑ It is suggested that the host venue designate a visible and publicized check-in location that is in immediate proximity of the Tour's start/finish event site. ,E,rfliBir��f Local Organizing Committee ❑ In order for the Tour to be successful at the local level, in terms of support, planning and execution, the following positions are required for your host venue's Local Organizing Committee(LOC). Local Organizing Committee Positions Chairperson Sponsorship/Sales Director Operations Director Finance Director Media&Public Relations Director Medical/EMT Coordinator Technical Director Volunteer Director VIP/Hospitality Director Community Outreach/Ancillary Events Director Economic Impact Survey Liaison Health and Wellness Expo Liaison ❑ Typically, community members from your local CVB, Chamber of Commerce, Sports Council, City Special Events office, local bike/track clubs, sponsors, etc. make excellent LOC members. In addition,because the Tour of California promotes a health and wellness platform, LOC membership from local health care and fitness organizations and hospitals is encouraged. ❑ It is suggested that the LOC meet on a monthly basis, followed by a bi-weekly basis as the Tour approached, in order to maximize communication and planning. Tour representatives will also attend your LOC meetings in order to provide planning updates. Cy�s 7 EXHIBIT B LOC Sponsorship Formulation Package Protected Categories (Exclusivity) *As of November, 2005 • Pharmaceutical/Biotech • Tire/Wheels • Automobile • Game Station • Gas/Convenience Store • Airline • Soda Lottery • Water • Mortgage • Home Builder • Life Insurance • Financial Services (Bank, • Home Improvement investments, credit card) • AutoClub • QSR • Camera • Nutrition Bar • Beer/Wine • Computer Sciences • Home Security • Jerseys Apparel • Copier/Printer The following categories will NOT be allowed for inclusion in the 2006 Amgen Tour of California: • Gaming/Gambling • Firearms • Tobacco • Spirits/Hard alcohol �y EXHIBIT B LOC Sponsorship Formulation Package 2006 LOC Benefit Inventory Finish Venue/Time Trial Venue Promotional o Local kick-off Press Conference announcing course details, sponsors, etc. (conducted in conjunction with Tour officials) o Official Tour of California Flyers (amount TBD) o Official Tour of California Posters(amount TBD)—customizable/tagged with local sponsor logos (additional printing costs responsibility of LOC) o Sponsor `Thank Yous' listed in Tour's Official Program o Sponsor `Thank Yous' on Official Amgen Tour of California Website—Logo and Hotlink o Official Amgen Tour of California City"Welcome Banner"to be placed in prominent location—produced by Tour o Official Amgen Tour of California "Podium Hostess Program" o Educational Handbook and Curriculum(amount TBD) Hospitality o Twenty-five(25)Hospitality invitations (for day of race only) o Access to Finish Line VIP-viewing area o One(1)Amgen Tour of California Leader's Jersey Autographed by 2006 winner o Four(4)tickets provided to Tour's Post Race Celebration on February 26th (location TBD) On-Site o Six(6) 30-second commercial units to be shown on large-screen television at finish line o Eight(8) PAA's (read at Finish line) o Five(5) Health and Wellness Expo booths— 10' x 10' (finish line expo area only) o Sponsor Volunteer Employee Program—implemented in conjunction with the Tour- subject to approval by the Tour 34 C��7 EXHIBIT C Tour Marks 31 Cy-� L--1 EXHIBIT D Host Marks - city of `j san lues osispo • F 1 I ll6aFn RSA 2006 ICEN'��' 32 Cy�� RI iACNM Outstanding Agreement Terms to be Resolved Note: some of the outstanding terms listed below have been amended in the latest revised agreement, which is being presented at this time to Council. Until a final agreement is received, these items are being listed for informational purposes. 1. Introductory agreement language: The City's Parks and Recreation Department is serving as the LOC, so the City and the LOC are the same entity. Additionally, San Luis Obispo needs to be identified as a Charter City. 2. Host Obligations,paragraph e: Ambush-Free Zone. The City's Host Stage area will be surrounded by permanent retail establishments that frequently use temporary signs and merchandise as part of their seasonal displays. Some clarifying language needs to be included indicating that the City has no authority or responsibility to require removal of these materials and that the Agreement is not intended to include displays incidental to existing businesses. 3. Host Obligations,paragraph f: Ambush Marketing. The City is asking for clarification of the meaning of f(2)and eliminate the language relating to City obligations to regulate the conduct of the County or other unspecified governmental agencies. Additionally, the last sentence [f(3)],be modified to reflect that the City will use best efforts prevent the scheduling of other City authorized or sponsored events that conflict with or detract from the Tour, which would allow regularly scheduled events, such as Farmers'Market,to proceed without prior approval. 4. Host Obligations,paragraph g: Merchandise and Counterfeiting and Trademark Enforcement. City is requesting the elimination of the language re Host obligations to obtain cooperation of other governmental agencies. The revised language should read something like "Host will cooperate with AEG in preventing.... 5. Host Obligations, paragraph m: Proposed Host Contracts. The City is requesting the language be modified to reflect that incidental contracts (garbage,porta potties,etc.) are not subject to prior approval. Additionally, language to be added to make explicit that AEG approval will not be unreasonably withheld. 6. Host Obligations,paragraph o: Cycling Requirements. The City is asking AEG Cycling to provide clarification as to the nature and scope of the referenced cycling requirements and requesting some language indicating that AEG has inspected and accepted the course, surface, location,etc. 7. Host Obligations, paragraph q: Progress Reports. The City is asking for a correction of the due dates on the progress reports and to whom these reports should be submitted. 8. Host Obligations,paragraph r: The City is requesting the following revision to the anti- disparagement provisions in this and other sections: �y-ya ATTACHMENT 2 This section shall not be interpreted to preclude any action or proceeding by Host to enforce or defend its rights under this Agreement and shall not preclude Host or its representatives from communicating information, which Host reasonably determines to be factually accurate, pertaining to the Tour; its organizers or sponsors. 9. Host Obligations,paragraph t: No disclosure. All non-disclosure provisions will be removed from the agreement, as a municipality cannot legally withhold such information. (Note: this item is omitted in the revised agreement being presented to Council but is being noted as an issue until the final agreement is received) 10. Host Obligations,paragraph u: Other Services. The City is requesting that the language be qualified to include a consultation requirement with the Host City,or a provision that the City is agreeing to provide additional services,to the extent practicable,which may be incidental to its obligations under the agreement. 11. Financial,paragraph a: Tour Revenues. The "except" provisions should include revenues from ancillary events,which can simply include a reference to paragraphs 6c(3) (ancillary events). 12. Required Clauses,paragraph c: Indemnification. The City wishes to have it stated that the City is part of a self insurance pool and asked to incorporate language reflecting that. Also,asked to correct language relating to the indemnification of the State of California and spell out the UCI indemnitee. (Note: some of these items have been resolved but is being noted as an issue until the final agreement is received.) 13. Required Clauses, paragraph f: (also,Insurance, paragraphs a(1)-a(3) and c(1)-c(5): The City is asking that concerns be addressed about the insurance being required of the City was greater in both scope and amount than that being provided by the AEG parties. Additionally, asked that AEG revise the provisions to reflect the insurance actually in place. Also,the provision should reflect the insurance pool issue previously referenced. 14. Licenses to Use Marks,paragraph a(5):No Disparagement by Host. The City is requesting that the paragraph be revised to include the anti-disparagement qualification previously referenced. 15. Licenses to Use Marks,paragraph a(6)(a): Tour Marks Guidelines. The City is asking for verification that the referenced Graphics Standards Manual has been provided to the LOC representatives. 16. Ownership and Protection of Intellectual Property,paragraph a(3): The City is requesting clarification that the Host City is not assuming any affirmative obligation to register or enforce AEG's intellectual property rights,but is merely agreeing reasonably to cooperate with AEG should AEG find it necessary to initiate an action. 17. Representations and Warranties,paragraph b(5).(By Host): This paragraph should include the non-disparagement qualification language previously set forth. ATTACHMENT 2 18. Indemnification,paragraph b. (By Host): The City is asking AEG to add the previously provided language regarding the indemnification of the State of California for road conditions,etc. 19. Termination,paragraph b: Effect of Termination. The City is asking for an increase in the AEG liability limit and provide a revised number that is more equitable in light of the extent of the Host obligations. Also,the City is asking for limitation on the Host City's liability to AEG should termination result from a notice of termination from AEG and a more equitable allocation of liability resulting from termination. 20. Cancellation or Postponement of Tour for Reason Other than Force Majeure. This provision essentially provides AEG with the unilateral ability to cancel the Tour for any reason or no reason at all with no financial consequence. Thus,the City has less protection against a cancellation without cause than it does against a cancellation for a "termination event." The City should be protected against such a unilateral cancellation at least to the same extent that it is protected against a cancellation for cause. 21. Liability of City and LOC Joint and Several. This provision should be removed in its entirety as the City and the LOC are one and the same in this instance. (Note: this has been modified in the revised agreement but is being noted as an issue until the final agreement is received.) 22. General, paragraph q: Confidentiality. This paragraph must be deleted as the City cannot legally agree to a confidentiality provision. (Note: this item is omitted in the revised agreement being presented to Council but is being noted as an issue until the final agreement is received) 23. Exhibit C—Tour Marks: Not received �y-yd 1 ATTACHMENT June 16, 2005 Ms. Kelly Greene, Venue Director Medalist Sports P.O. Box 415 Tyrone, GA 30290 Dear Ms. Greene: On Tuesday June 7, 2005,the City Council unanimously approved the City's participation as a"Host City" for the Tour of California,the new world-class professional cycling event being coordinated by Medalist Sports and scheduled to take place in California from February 19-26, 2006. We are excited not only about the event but also with the opportunity to showcase our beautiful City during the two days you will be in San Luis Obispo (February 23 and 24, 2006). In approving the City's participation in the event, we are committed to the following in-kind services to assure that the event is safe and successful for all involved. These include: 1. Development of and participation in a Local Organizing Committee. 2. City services: Police, Public Works and Parks and Recreation staff, 300 volunteers, street sweeper, trash collection services. 3. Road closures in the immediate area of the finish and start location (one-block area) for approximately 12 hours for the finish line and 8 hours for the start line. Road closure equipment (cones,barriers,etc.). 4. Overnight secure location (if appropriate)for team vehicles, equipment,etc. 5. Waiving of permit fees. 6. Possible use of City-owned auxiliary space, if in close proximity to finish line (i.e. location for press conference,race office). 7. Assistance with local/city relationships in terms of other TOC requirements (i.e. portable toilets, hotels,catering,etc.). 8. Costs associated with creating other events to support the TOC(optional). 9. Other services, as negotiated during the development of a formal agreement with the City. We look forward to working with Medalist Sports during the next eight months to see that the portion of the Tour of California taking place in the City of San Luis Obispo is the best and most professionally run event that it can be. Sincerely, Mayor David F.Romero Cc: Chris Aronhalt,Managing Partner,Medalist Sports Dave Garth,President,SLO Chamber of Commerce Paul LeSage,Parks&Recreation Director Wolf Knabe,Fire Chief Deb Linden,Police Chief Jay Walter,Public Works Director � r ATTACHMENT TotIV- f fo October 11, 2005 Mayor David F. Romero City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Re: 2006 Tour of California Dear Mayor Romero: This letter shall serve to confirm the terms and conditions under which City of Ban Luis Obispo (hereinafter referred to as "Host") has been conditionally offered the opportunity to host the Stage 4 Finish and Stage 5 Start (the "Host Stages")for the 2006 Tour of California(the"Tour"), subject to signature and return of a counterpart of this letter containing an original si¢nature on behalf of Host within ten (10) days of the date of this letter. Should Host fail to return a counterpart of this letter containing an original signature on behalf of Host within ten (10) days of the date of this letter, AEG,LLC ("AEGC")may revoke the conditional offer set forth herein and conditionally award the right to host the Host Stage to another municipality or other entity. Upon receipt by AEGC of a counterpart of this letter containing an original signature on behalf of Host AEGC will forward to Host the more comprehensive agreement that memorializes the parties' rights and obligations. This letter and its terms represent a non-binding expression of the parties' intent, upon.the conditions set forth herein, and do not convey any rights of any type. The more comprehensive agreement which will be presented subsequently will constitute the binding legal document. The 2006 Tour will be held from February 19 through 26, 2006 and the Host Stages conditionally-offered to Host shall be held on February 23 and 24 , 2006. This conditional offer is made specifically made subject to AEGC entering into an agreement acceptable to AEGC- regarding the terms under which AEGC will operate the Tour as well as to the following terms and conditions:. In conjunction with hosting of the Host Stages for the Tour,Host agrees generally that it will cooperate with AEGC and AEGC's designees and use its best efforts to assist and to facilitate presentation of the Tour. More specifically, Host agrees that: 1. It will provide assistance in accordance with the 2006 Planning Manual to be furnished by Medalist Sports ("Medalist"); 2. It will form a local organizing committee(the "LOC")with specific responsibility for the Host Stages to be held in San Luis Obispo, to designate a chairperson for the LOC, and to ensure that the LOC includes individuals with experience in the following areas and whose responsibility would be as follows for the Host Stages in San Luis Obispo: 1 1 ATTACHMENT 4 a. Sponsorship/Sales Director; b. Operations Director; c. Finance Director; d. Media&Public Relations Director; e. Medical/EMT Coordinator; f. Technical Director; g. Volunteer Director; h. VIP/Hospitality Director; i. Community Outreach/Educational Director; and j. Ancillary Events Director ; 3. Host and LOC will assist the Tour in securing the following for the Host Stages in San Luis Obispo: a. Accommodations: That number and type of hotel rooms for the night(s) designated on Exhibit"A" within those further specifications to be provided by the Tour; b. Meals: That number and type of meals for those day(s) designated on Exhibit"A"; c. Auxiliary SRace and Equipment for Tour Requirements: Those types of areas,premises and equipment for the time period designated on Exhibit «A„ Host and LOC will provide the following at the sole expense of the Host and LOC: d. Police Services: Local police services to work in coordination with the Caltrans and California Highway Patrol, as well as Tour representatives and LOC volunteers, to provide for safe road closure, fixed-post positions, traffic and crowd control and general public safety; e. Public Works and Road Services: Support police efforts to ensure road closure and course safety; f. Permits: All local permits for operation of the Tour in Host's locale and presentation of the Host Stages, including but not limited to special event permits, parking permits,road closure and use permits, alcohol permits, and concession sales permits; g. Security Services: Outdoor overnight security at each of the hotel properties being utilized by the Tour's official party; h. EMS/EMT Services: Emergency medical services and emergency medical technicians to serve the general public at and on the days of the Host Stages in San Luis Obispo; i. Portable and/or Public Restrooms: Portable(e.g., port-o johns)or public restroom.facilities on the day of the Host Stages in a number and location to be determined by Tour representatives; j. Waste Management/Trash Removal: Waste management and trash removal services following conclusion of the Host Stages in San Luis Obispo; and 2 L,7 ATTACHMENT 4 k. Volunteers: Recruitment of that number of volunteers designated on Exhibit "A" to this letter to assist local police and Tour personnel with various functions to be designated by Tour representatives. 4. Host and LOC will assist AEGC and Medalist in obtaining a design and layout of that portion of San Luis Obispo through which the Tour course will run; 5. As between Host/LOC and AEGC; AEGC controls all.rights to distribute,promote, market and otherwise commercially exploit the Tour by means of any and all audio, visual and audiovisual media of all types, including but not limited to television, radio, Internet and print, as well as with respect to sponsorship, licensing, hospitality, merchandising, and other marketing rights with respect to the Tour and that Host will not purport to grant or license any such rights to a third party without the prior express written approval of AEGC. Further, Host will cooperate with the media and marketing plan of AEGC, including accommodating television broadcasters, sponsors, and other persons and entities to whom and to which AEGC has granted and will grant rights; 6. Before staging any ancillary events in connection with the rights granted by AEGC as set forth in this letter, Host and LOC shall obtain the prior written approval of AEGQ 7. Host and LOC shall refer to the Tour by the precise name supplied by AEGC from time-to-time, including any title or presenting sponsor identification (should title or. presenting sponsorship rights be granted), and shall include,in all agreements that Host may enter into with third parties, a requirement that all third parties utilize the name for the Tour supplied by AEGC from time-to-time; 8. Host and LOC shall submit to AEGC for prior review and approval all contracts that Host proposes to enter into with respect to the obligations undertaken by Host in connection with the Tour; 9. Host and LOC shall procure appropriate insurance in amounts and types of coverage underwritten by carrier(s) acceptable to AEGC in connection with claims p arising from performance of the obligations,products and services provided by Host and LOC in connection with both hosting the Host Stages and this Agreement and AEGC and Medalist will be added as additional insureds under the applicable insurance policies; 10. Host and LOC shall indemnify and hold harmless AEGC,Medalist and designated other parties of and from any liabilities, damages, losses, and other claims arising from the performance of the obligations,products and services by Host and LOC in connection with hosting the Host Stages and in connection with this Agreement; 11. Host and LOC shall exercise their best efforts to make sure that hospitality services (including lodging and restaurants) are provided at reasonable prices for visitors and tenants; 12. Host and LOC will undertake to respect the minimum requirements for the sport of cycling as defined by the various governing organizations over the sport of cycling; 3 Cy 7 ATTACHMENT d 13. Neither Host nor LOC will make any public disclosure of the terms of this letter or this offer to host the Host Stages in connection with the 2006 Tour; and 14. Host and LOC will provide those other services and undertake those other obligations set forth in Exhibit"A" attached hereto and made a part of this letter by this reference. Host agrees,both on its behalf and on behalf of the LOC, that it shall undertake those obligations set forth above as well as those to be set forth in the more definitive and comprehensive agreement between Host and AEGC, all at the agreed expense of Host and LOC. In consideration for Host and LOC agreeing to undertake such obligations at their expense, AEGC will: 1. Include recognition for Host in the official Tour Magazine, Tour web site; and in a press conference announcing that Host has agreed to serve as the host for Host Stage for the Tour; . 2. Provide a designated number of credentials for VIP hospitality that AEGC intends to create; and 3. Provide local sponsorship opportunities for Host to utilize as a means of fund- raising. It is the obligation of the LOC to inform the Tour's Managing Director of all possible conflicts of interest that may occur in the sponsorship area. It remains the sole right of the Tour Managing Director, at any time, to deny local sponsorship of any company in direct conflict with a national sponsor. The foregoing principal business terms will be incorporated into the definitive and more comprehensive agreement, which would also specify legal terms and conditions customary to an agreement of this type, including, without limitation,representations and warranties and termination provisions. We are excited to make this conditional offer to Host to be a part of the Tour in 2006. To accept this conditional offer, to recognize Host's undertaking and AEGC's-award of this hosting opportunity,please cause one counterpart of this letter to be signed on behalf of Host and return a counterpart containing an original signature to: AEG Cycling,LLC 1100 S. Flower St, Suite 3200 Los Angeles,CA 90015 Attn: Bob Colarossi As previously noted,Host must return a counterpart of this letter containing an original signature on behalf of Host within ten (10)days of the date of this letter. Should AEGC not receive such a counterpart within ten (10)days of the date of this letter, AEGC may revoke this conditional offer. 4 Cy y7 ATTACHMENT 4 Upon receipt by AEGC of a signed counterpart of this letter, we will forward the more comprehensive agreement for signature by Host. In the interim,Host should not make any disclosure of this conditional offer or of the terms and conditions of this letter. Sincerely, AEG Cycling, LLC By: Name: Robert V. Colarossi Title: Managing Director Agreed to this day of , 2005. City of San Luis Obispo By: Name: Title: 5 i EXHIBIT A Services to be Provided and/or Obligations to be Undertaken by Host Host Venue Requirements- Stage Finish with a Stage Start Below are the requirements of a community and its Local Organizing Committee (LOC) to host a . Stage Finish with a Stage Start of the 2006 Tour de California. Please note that the Tour will make ever effort possible to reduce these requirements through its planning process. Operational Requirements 1. Accommodations • The host venue is required to assist the Tour in securing accommodations for the entourage, teams and team personnel (549 people), advance finish construction crew and advance staff(65 people) and advance start construction crew and advance start staff(36 people),totaling approximately 650 people. This applies to the following: • Night before Stage Finish (advance crew and staff—65 people),requires 40 rooms (15 sin es and 25 doubles). Rooms should be at one hotel within close proximity of the Finish Line area. • Night of Stage Finish—585 people (entourage plus start crew -329 people, athletes and team personnel—256 people), requires 360 rooms in the following room configuration: 4 suites, 133 single, 223 double rooms. Rooms should be in no more than 3 properties with at least one hotel having enough capacity for 175 rooms. 2.Meals. The host venue is required to assist the Tour in securing a dinner meal the night of the Stage Finish, based on menu specifications provided by the Tour's Operations.Director, for the entire entourage of 585 people. The dinner meal should be served at the Headquarters Hotel. • Excluding athletes and team support personnel, a dinner per diem of$15 (per person) may be provided for staff(approximately 329 people)in lieu of participating in the organized dinner meal that is required for all teams. The host venue should provide a.lunch meal the day of the Stage Finish, for the worldng media (gpproximately 35 people).The lunch meal should be located at the designated Media Office. The Tour encourages a host venue to consider a local restaurant/vendor to assist with this meal in-kind or as a potential sponsor. The host venue is required to assist the Tour in securing a breakfast meal the morning after the Stage Finish for the following groups: • Athletes and team support personnel only (approximately 256 people). Breakfast should be served at the headquarters hotel. • Start Crew staff(approximately 36 ve2ple breakfast should be served at 6:00 AM or 6:30 AM. Based upon early hours, a cash per diem of$6 (per person) is recommended. 3.Auxiliary Space The Tour requires the following auxiliary spaces for use within 24 hours leading up to the Stage Finish: Race Office • Approximately 500— 1,000 square feet • Must have power,phone line, and wireless internet access. 6 �y-�9 317 Operational Requirements Continued Media Office • Approximately 500— 1,000 square feet • Must have power, phone line, fax line and.DSL and wireless internet access Press Work Room • Approximately 500— 1,000 square feet.- or can be co-mingled with Media Office • Must have power, DSL and wireless internet access Press Conference • Approximately 1,500 square feet • Theater-style seating for 300 people • Sound System with 7 Microphones and mult-box Medical Office • Suite at the Headquarter Hotel or a meeting room at the Headquarter Hotel with a nearby bathroom Team Parking and Mechanics Work Area • A sizable portion of the Headquarters Hotel parking lot is required • Each team travels with a motor coach, trailer and support vehicle and additional space is needed for mechanics to work on bikes • Access to water and power Staff Parking • Approximately 75 vehicles Bicycle Storage • Approx 1,500 square feet—can accommodate all teams and can be locked Commissaires Meeting Room • Small Conference Room for approx. (8-10) people High-Speed Copiers • The Tour requires the host venue to provide two (2)high-speed copiers, which collate and staple. • Copiers should be delivered and installed in the 1.) Race Office and 2.)Media Office • A copier technician must be on-hand each day, 24-hours per day to assist Tour staff with trouble-shooting situations. 5. Flowers ❑ The Tour requires of the host venue eight(8)flower bouquets to be used during the Awards Ceremony. 7 . Yl Technical Requirements 1. Police ❑ Local (City and/or County) police services are the responsibility of the host venue. In coordination with California Highway Patrol (CHP), CalTrans, as well as the Tour's motor and road marshals and in conjunction with the LOC volunteer program, local police provide fora safe road closure, which may include fixed-post positions, traffic control, crowd control,enforcing no-parking zones and maintaining general public safety. 2. Public Works and Road Services ❑ Local Public Works and Road Services are the responsibility of the host venue. These services are necessary to support police efforts to ensure road closure and safety of the course. These services may necessary include detours and detour equipment, barricades, cones, printing/posting of No Parking signs, removallrestoration and street repair. 3. Permits ❑ All city permits and permit requirements for the operation of the event are to be procured by the host venue on behalf of the Tour. They include, but are not limited to:. Special Event Permits Concession Sales Parking Permits Alcohol Permit Road Closure and Use Permits Sound Amplification Banner and Sign Permits Material Distribution Sponsor Expositions 4. Security ❑ It is the responsibility of the host venue to provide outdoor overnight security at each of the hotel properties being utilized by the Tour's entourage. In addition to attractive vehicles, the equipment of the staff and teams is very expensive. 5.EMT/EMS Services ❑ It is the responsibility of the host venue to provide EMT/EMS services for the general public the day of the Stage Finish and the Stage Start. ❑ Please note that the Tour provides medical services for the athletes, team support and staff personnel. ❑ Placement of EMT/EMS services will be decided by the Tour's Technical Director. 8 � y s/ .�XtfJ/3/T jj Technical Requirements Continued 6. Port-o-Johns ❑ It is the responsibility of the host venue to provide port-o john services, or public restrooms, during the day of the Stage Finish and the Stage Start. ❑ Number of units (approx. 25, plus 2 handicap for Finish and 10 units, 2 handicap for Start) and placement of units to be mutually agreed upon by the host venue and the Tour's technical Director. 7. Waste Management/Trash Removal ❑ In consultation with the Tour, it is the responsibility of the host venue to provide waste management1trash removal services following the conclusion of the Stage Finish and Stage Start. ❑ It is the responsibility of the host venue to have this trash removed from the event site(it is recommended that the host venue may want to have a dumpster delivered to the site the day before the event—placement of this dumpster determined by the Tour's Technical Director). Volunteer Program ❑ Each race scenario must have volunteers to assist the local police and Tour personnel in providing a safe road closure. A typical Stage Finish venue will require approx. 250-300 volunteers and a Stage Start requires approximately 100-150 volunteers. The number of volunteers will be decided once the course has been finalized and properly approved by local authorities. ❑ In addition to providing volunteer course marshals, volunteers will also be assigned to assist with the following functions: > Media Office > Working Press Room > Press Conference > Awards > Hospitality > Anti-Doping/Drug Control > Economic Impact Survey-takers > Race Office > Site Decoration/Restoration ❑ The Tour's Volunteer Coordinator will conduct an Orientation for the Course Marshals and a separate meeting for the other Volunteer roles, prior to the Stage Start and Finish, as well as assist the host city Volunteer Coordinator on-site with assignment and T-shirt distribution. ❑ It is suggested that the host venue designate a visible and publicized check-in location that is in immediate proximity of the Tour's start/finish event site. 9 Cy�z kh�IRI7 of Local Organizing Committee ❑ In order for the Tour to be successful at the local level,in terms of support, planning and execution,the following positions are required for your host venue's Local Organizing Committee (LOC). Local Organizing Committee Positions Chairperson Sponsorship/Sales Director Operations Director Finance Director Media&Public Relations Director Medical/EMT Coordinator Technical Director Volunteer Director VIP/Hospitality Director Community Outreach/Ancillary Events Director, Economic Impact Survey Liaison Health and Wellness Expo Liaison ❑ Typically, community members from your local CV13, Chamber of Commerce, Sports Council, City Special Events office, local bike/track clubs, sponsors,etc. make excellent LOC members. In addition, because the Tour of California promotes a health and wellness platform, LOC membership from local health care and fitness organizations and hospitals is encouraged. ❑ It is suggested that the LOC meet on a monthly basis, followed by a bi-weekly basis as the Tour approached, in order to maximize communication and planning. Tour representatives will also attend your LOC meetings in order to provide planning updates. 10 C7 ��� c o u n c i L m E m o Qa n O u m January 17, 2006 FRECEIVED TO: City Council 006 VIA: Ken Hampian, City Administrative Officerrd, LER K FROM: Linda Fitzgerald, Acting Parks & Recreation.Director ; SUBJECT: Amgen Tour of California Participation Agreement- Update On Thursday, January 12, the City received a revised participation agreement for the Tour of California. The final agreement is substantially the same as the document given to Council in the January 17 agenda packet. The City Attorney and the Parks & Recreation Department have reviewed the agreement and are satisfied with the terms outlined in the document. All of the issues identified in the "Outstanding Agreement Terms to be Resolved" attachment have been addressed to the City's satisfaction. 41qre,o 06;W E ® COUNCIL I-CDD DIR CAO aFIN DIA RED FILE ACAO PS FIRE CHIEF A77ORNEY Q5-PWOIR MEETING AGENDA ® CLERIVORIa �T CF CHF DATE 7 ITEM # Cy O D6FrHEADS 0 DIR 3 DIR ® ��� HR DIR council. M.WgD ` Jap 17, 2006 j ac,Enaa Report G5 CITY OF SAN LUIS OBISPO FROM: Jay D. Walter, Director of Public Works Prepared By: Jennifer Lawrence,Engine ring Technician SUBJECT: TRENCH REPAIR 2006, SPECIFICATION NO. 90618 CAO RECOMMENDATION 1. Approve plans and specifications for"Trench Repair 2006, Specification No. 90618." 2. Authorize staff to advertise for bids and authorize the CAO to award the contract if the lowest responsible bid is within the Engineer's Estimate of$105,000. DISCUSSION Throughout the year, City Utilities Department staff makes emergency repairs to pipelines in City streets. At the time of repair, temporary asphalt patches are placed at the surface of the street where trenches have been dug. These temporary patches eventually need to be replaced with a stronger and more permanent asphalt patch. The Public Works Department accumulates a list of the temporary patch locations from the Utilities Department and periodically issues a construction contract to make the permanent repairs. This project will "repair approximately 114 trenches and 1.6 meters of curb and gutter throughout the city. A complete plan of all locations is included in the Special Provisions. CONCURRENCES The Community Development Department has given this project a categorical exemption. FISCAL IMPACT This trench repair project is funded as part of the Water Distribution System Improvements approved in the 2005-2007 Financial Plan. Engineer's Estimate: $ 105,000 10% Contingencies: $ 10,500 Total for Construction: $ 115,500 Miscellaneous (incl. printing): $ 1,000 Total Project Cost: $ 116,500 Funds Available: $ 1,123,600 C5-I r Trench Repair 2006 Page 2 AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE Special Provisions is\_=reporfs\2006\dp\90618 tw&repa eSM18 aay.doc C5 - 2