Rights Package For The Sausalito Challenge For The 2007 America’s Cup and Other Activities

Exclusive Sponsorship to be auctioned via eBay April 2 - 9

Auction Overview
By bidding in the auction on eBay for this item, your company can become the Exclusive Sponsor of “The Sausalito Challenge,” thereby acquiring branding rights for an America’s Cup team and its yachts which will be sailed to challenge for the America’s Cup in Valencia Spain 2007, with official activities scheduled to commence in Europe in 2004. In addition to sponsoring the Sausalito Challenge for the 2007 America’s Cup, the winning bidder will also become the Exclusive Sponsor of both the 2004 and 2005 “Challenge Series,” a three regatta per year series for retired America’s Cup yachts sailed on San Francisco Bay. Finally, for 6 months, the winning bidder will be provided with the world’s most exclusive advertising vehicle – a “Sailing Billboard” on San Francisco Bay, with the date selected by the winning bidder.

John Sweeney & Tina Kleinjan winners of the 2003 Il Moro Trophy Regatta

The “Sausalito Challenge” is lead by syndicate co-chairpersons and investor/visionaries Tina Kleinjan and John Sweeney. Armed with their past America’s Cup and marketing expertise, Tina and John will lead a dynamic team of some of the world’s best America’s Cup sailors, designers and managers. The Exclusive Sponsorship is a comprehensive marketing package, which will provide brand exposure not only in Europe but also in the USA starting in June 2004.

An auction on eBay was selected as the vehicle for the sale of the Exclusive Sponsorship to allow all interested companies and individuals to see what is being offered at the same time. Typically, sponsors of teams challenging for the America’s Cup have to commit to fund budgets three or four times as large as the minimum bid amount required in this auction. The Sausalito Challenge proposes to enter the competition relying on a comparably small budget, by building one new yacht and giving a group of very smart individuals a chance to perform as a team using cost effective strategies. The core team assembled will have a chance of winning the America’s Cup, but the overall strategy is to create a global image for one company for a fraction of the cost of the usual America’s Cup team.

Overview “SC” Team Sponsorship – 2007 America’s Cup
The Sausalito Challenge will be based for training and operations at Treasure Island in San Francisco Bay, as well as in Valencia, Spain. The team will be participating in all regattas organized by AC Management Limited (the official organizing committee for the 2007 America’s Cup) for all of the challengers for the 2007 America’s Cup, leading up to and including the Louis Vuitton Challenger Series in 2007. Two or three regattas are scheduled each year starting in September 2004 in Valencia, as described in the 32nd America’s Cup Terms of Challenge and Protocol Governing the Thirty Second America’s Cup (see www.americascup.com).

Overview of America’s Cup 2007
For the first time ever in the history of the America’s Cup, the program will include numerous events over a period of 2 1/2 years. Events will start in September 2004 and end July 2007 and will be divided into three phases: Pre-Regattas, Louis Vuitton Cup and finally, the America’s Cup Match. The Pre-Regattas will take place in Valencia, Spain as well as additional venues in southern and northern Europe, allowing teams and their sponsors extended reach and exposure. All teams will participate in the Louis Vuitton Series in Valencia in 2007, and will sail until they are eliminated or win the America’s Cup.

Summary of Benefits
• Exclusive Naming Rights for the Team (The “Company Name” Challenge)
• Company Name, Logo and/or Colors displayed on Yacht
- Company Name/Logo/Colors to be displayed on the Hull
- Company Name/Logo/Colors on the Deck and Cockpit
- Company Name/Logo displayed on Mainsail
- Company Name/Logo displayed on Spinnaker
- Company Name/Logo displayed on Main Boom
• Crew Clothing: Company Name, Logo and/or Colors incorporated into all Team Clothing
• Company Name/Logo displayed on Shore Bases in Valencia, Spain and California
• Company Name/Logo incorporated into Team Website and Support Boats

Please refer to the 32nd America’s Cup Terms of Challenge and Protocol Governing the Thirty Second America’s Cup for further details, including without limitation, Article 10 of the Protocol (see www.americascup.com).

Overview of “The Challenge Series” San Francisco
The Challenge Series is comprised of three fleet-racing regattas held each year on San Francisco Bay. The yachts racing in the regattas are America’s Cup Class Yachts from the1992 America’s Cup competitions. Set in the natural San Francisco Bay amphitheater, the races are visible from the San Francisco and Marin County shorelines. Based on the fleet-racing format, 4-5 yachts race on the same course, all at once. Spectators can watch from any number of land-based viewing points and see the entire race. Additionally, the protected waters of the bay allow spectator craft of all sizes to follow the action on the actual racecourse. These elements make The Challenge Series one of the most accessible and viewable grand prix sailing events in the world.

Summary of Benefits:
• Exclusive Naming Rights for the Event (The “Company Name” Challenge Series) for two seasons (2004-2005)
• Company Name/Logo displayed on all Yachts Participating in the Regattas during the Races
- Company Name/Logo displayed on Hulls
- Company Name/Logo displayed on Mainsails
- Company Name/Logo displayed on Main Booms
- Company Name/Logo displayed on Spinnakers
• Clothing: Company Name, Logo and/or Colors incorporated into all Participating Teams’ and Event Staff Clothing
• Company Name/Logo incorporated into Challenge-Series.com Website
• Company Name/Logo on all Challenge Series Support Boats and Race Committee Yachts
• Company Name/Logo incorporated into all Event Advertising, Marketing and Promotions by SFCC
• Company Name/Logo on all Challenge Series Event Signage, Clothing and Merchandise Produced by SFCC
• Signage - Company Name/Logo at Treasure Island Base Pier
• “17th Man” position on Racing Yachts for Executives and Clients
• Host of Trophy Presentation
• Opportunity to use Sausalito Yacht Club and Base Facilities for Hospitality

All advertising and benefits will be provided as per SFCC policies for the Challenge Series as approved by the sponsor. (For examples, see photos and displays at www.challenge-series.com.)

Overview of “Sailing Billboard” advertisement
As the Exclusive Sponsor of the Sausalito Challenge America’s Cup team and The Challenge Series fleet racing events on San Francisco Bay, the Exclusive Sponsor may also choose to utilize a six (6) month, value-add opportunity of waterfront advertising on San Francisco Bay via “Sailing Billboards.” A Sailing Billboard is a twenty (20) day/month “branded” America’s Cup Yacht, which is sailed up and down the busy San Francisco city front/financial district displaying a bold advertising message. Sailing up and down the financial district with a ten-story ad gives your brand the most visible and creative outdoor advertising available in this market. Four (4) VIPS of the company’s choice can come for a sail each day. The yacht sails daily from 7am until 1pm weather permitting. (See www.sailingbilllboards.com.)

Sausalito Challenge Calendar
2007 America’s Cup Schedule

2004
5-11 September Pre-Regatta in Valencia
25 Sep – 2 Oct Pre-Regatta tbd in Med.
17-23 Oct Pre-Regatta tbd in Med.

2005
3 or 4 Pre-Regatta in Valencia, Southern Europe, Northern
Europe and USA.

2006
2 Pre-Regatta in Valencia

2007
3-17 April Fleet racing for all challengers
18 Apr – 12 Jun Louis Vuitton Cup for all challengers
23 Jun – 7 Jul America’s Cup 2007 (Swiss vs. winner of LV Cup)

Competitions are subject to change based on weather considerations and other factors as contemplated in the the 32nd America’s Cup Terms of Challenge and Protocol Governing the Thirty Second America’s Cup, as amended from time to time (available at www.americascup.com).

San Francisco Challenge Series Regatta Schedule

2004
18-20 June Sausalito Cup
6-8 August Il Moro Trophy
15-18 October Golden Gate Cup

2005
June Sausalito Cup
August Il Moro Trophy
October Golden Gate Cup

Competitions are subject to change based on weather considerations and other factors, subject to the mutual approval of the Exclusive Sponsor and SFCC.

Sailing Billboard Schedule

Any 6-month period chosen by sponsor during 2004/2005. May be broken into two 3-month flights.

Websites for further info:

www.americascup.com
www.challenge-series.com
www.sailingbillboards.com