Public Relations Agreement - Reach Group Communications LLC and Hansen Beverage Co.
PUBLIC RELATIONS AGREEMENT
This public relations services agreement is entered into on this 18th day of
March, 2003, by Reach Group Communications, LLC ("Reach"), a Nevada Limited
Liability Company, and Hansen Beverage Company, a Delaware Corporation
("Hansen's").
Scope of Work
The services that will be provided by Reach to Hansen's are described in Exhibit
1 and 2.
Budget and Payment Terms
It is agreed that the total budget to provide the services described in Exhibit
1 and Exhibit 2 is $____.
First Payment: The first payment of $____ is due on or before Friday, March 21,
2003.
Second Payment: The second payment of $____ is due on or before Tuesday, April
1, 2003.
Third Payment: The third payment of $____ is due on or before Tuesday, April 15,
2003.
Fourth Payment: The third payment of $____ is due on or before Wednesday, April
30, 2003.
After the payments listed above are made, a balance of $____ will be allocated
by Hansen's to Reach Group for PR services. Specific services and monthly
allocation of the balance will be mutually agreed upon by Reach and Hansen's
from time to time as and when rendered.
It is agreed that Reach may not commence work on this project until the first
payment is received and may, at its sole discretion, suspend work until the
first payment or any progress payments are received. If payments are late Reach
will notify Hansen's by e-mail or fax if payments and request payment to be made
within three business days prior to suspending work. Suspension of the project
may result in a revised project completion date.
Additional Expenses
Pre-approved additional expenses may be submitted to Hansen's by Reach Group for
a period of up to 90 days after the completion of your projects. All payments
for additional expenses are due net 10 days.
Cancellation Policy
With the exception of the New York and Las Vegas media events, Reach and
Hansen's may terminate this agreement at will upon 30 days written notice.
Hansen's will be responsible for service payment(s) during the 30-day
cancellation period. All monies due to Reach from Hansen's for all completed
work and any cancellation fees from Reach subcontractors will be paid upon
termination notification in full. Work completed by Reach will not be released
to the Hansen's until cancellation fees and all outstanding balances have been
paid in full. Cancellation charges will be as follows:
Copyrights
Reach is an independent contractor to Hansen's for all services contained herein
and in future projects unless specifically agreed otherwise in writing.
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Hansen's retains the ownership and copyrights for all text, graphics, artwork,
audio and video content on all projects created for or provided by Hansen's.
Hansen's has exclusive rights of ownership, assignments, licensing and use of
this content, as well as the right to create derivative works of this content
unless the work, video, programming scripts, etc., are the intellectual or other
property of a third party.
Unless specified otherwise under separate agreement, Reach grants indefinitely
to Hansen's the right to use any work created by Reach unless said work is
already established as the Intellectual Property of a third party. Reach retains
the ownership of these operating elements and may use them in other projects not
related to the asset created for Hansen's.
Attorney's Fees
Except as set forth below, each party to this agreement shall bear its own
attorney fees. If any party to this agreement initiates any litigation to
enforce any of the provisions of this Agreement, the prevailing party shall be
entitled to recover all of its reasonable attorneys' fees and costs as set by
the court.
SIGNATURE: HANSEN BEVERAGE COMPANY
The undersigned acknowledges that he/she has full authority to bind Hansen
Beverage Company, financially or otherwise, to this contract and agrees to all
aspects of this agreement and its exhibits.
Agreed: /s/ RODNEY C. SACKS
--------------------------
Print
Name: Rodney C. Sacks
Print
Title: Chief Executive Officer/Chairman
Date: March 18, 2003
SIGNATURE: REACH COMMUNICATIONS GROUP, LLC
The undersigned acknowledges that he/she has full authority to bind Hansen
Beverage Company, financially or otherwise, to this contract and agrees to all
aspects of this agreement and its exhibits.
Agreed: /s/ PATRICK A. PHARRIS
Financially Authorized Representative of Reach Communications
Group, LLC
Print
Name: Patrick A. Pharris
Print
Title: Partner & President
Date: March 18, 2003
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Hansen's Monster Energy Drink
Public Relations Initiatives for the Las Vegas Monorail
As of March 14, 2003
Exhibit 1
NEW YORK UNVEILING
The Hansen's Monster Energy Drink train will be the first advertiser-themed
train of the Las Vegas Monorail.
While this four-car train is expected to make its journey across the United
States from the Bombardier manufacturing facility in Kingston, Ontario, Canada
on four separate flat-bed semi trucks, the second nose-car of the train, will be
Monster-branded and make one detour to Manhattan, New York where a major media
event will take place.
o Event Date
The event in New York will take place on Wednesday, April 23, 2003.
o Location
As allowable by New York City permitting, the event will take place in one
of the following locations: Wall Street, in front of the NYSE building;
Rockefeller Plaza; Time Square or Central Park.
o Event Creative Concept
The Hansen's Monster Energy Drink-themed train of the Las Vegas Monorail
will be unveiled in a spectacular visual media event in Manhattan, New
York. During the unveiling ceremony, the monorail car will be covered with
a shroud bearing the Monster and Las Vegas Monorail logos. A Las
Vegas-themed skyline backdrop/facade will rise from behind the monorail car
(pending). Las Vegas-style music will play on a public address system while
several showgirls saunter out from behind the semi truck. The showgirls
will escort the Chairman of the Las Vegas Monorail Company and the
President of Bombardier to the podium from where will make short
introduction announcements (not to exceed 2-minutes each) to dozens of
television, radio, print and Internet news reporters, VIPs, invited members
of the investment community and the general public. The Chairman of the LV
Monorail Company will then publicly introduce, congratulate and welcome the
Chairman of Hansen's who will also make a few short comments and show on a
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large video screen, an animation of the Hansen's-Monster train as it
travels down the monorail route through Las Vegas. Then, with the
assistance of one showgirl, Hansen's Chairman will "pull the arm of an
unveiling slot machine" which will suddenly remove the shroud to unveil the
first corporate-themed train of the Las Vegas Monorail. More than 1000
helium balloons will rise from behind the Las Vegas-themed facade and
confetti cannons will fire confetti simultaneously into the air above the
train. Music will commence once again.
Immediately following the visual event the Chairman of Hansen's, the
Chairman of the Las Vegas Monorail and the President of Bombardier
participate in the dozens of interviews described above.
o Anticipated Media Participation
The event will primarily feature an unveiling of the train car and a live
tour of the car by the hosts or primary reporter of NBC's The Today Show,
ABC's Good Morning America or CBS' The Morning Show. Additional media tours
of the Monster-themed monorail car and interviews with the Chairman of
Hansen's, the Chairman of the Las Vegas Monorail Company and the President
of Bombardier will be conducted by dozens of newspaper, magazine,
television and radio reporters who are expected to attend the event and
tour the car throughout the day.
o Media Outreach
Hundreds of hours will be dedicated to the pitching and placement of
newspaper, magazine, Internet and radio interviews. A Video News Release
will be produced on site and made available via satellite to every
television station in North America and to the domestic news bureaus of the
top 10 international television news services. Live television interviews
will be conducted on site via satellite with television stations from the
primary target markets of Las Vegas and Hansen's. A feature press release
will be distributed nationally on Business Wire, PR Newswire or Internet
Wire and a news photo stringer will be retained to distribute photos of the
event on several news wire services. The Las Vegas Convention and Visitors
Authority will be approached by Reach Group to assist in the media outreach
effort through the distribution of press documents and photographs via the
Las Vegas News Bureau.
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LAS VEGAS ARRIVAL
When the Hansen's Monster-themed monorail train nose car arrives on a
flatbed semi truck in Las Vegas it will be greeted with grand Las
Vegas-style fanfare.
o Event Date
The event in Las Vegas will take place on Wednesday, April 30, 2003.
o Location
The event will take place in the parking lot adjacent to the monorail
"barn" which is located on the corner of Paradise Drive and Sahara
Boulevard. This is the same location at which the Las Vegas Monorail Ground
Breaking Ceremony took place in August of 2001.
o Event Creative Concept
The semi truck carrying the Monster-imaged train will drive slowly into the
parking lot and drive through or under a Las Vegas / Las Vegas Monorail /
Monster-themed banner. On the other side of the banner hundreds of
applauding business leaders, federal, state and local elected officials,
executives from the companies that have built the monorail and media
representatives will applaud the arrival. The semi will pull up to a
staging area where presentations will be made by the Governor of Nevada,
the Chairman of the Las Vegas Monorail Company, the Chairman of Hansen's
and the President of Bombardier (each not to exceed 2 minutes). Upon
conclusion of the presentation, an animation of the Hansen's-Monster train
as it travels down the monorail route through Las Vegas will be shown on a
large video screen to everyone in attendance.
When the video has concluded, Las Vegas-style music will play on the public
address system and a dozen showgirls will emerge from behind the train to
set the stage for the next visual event.
The Chairman of Hansen's, along with one showgirl, will crash an oversized
can of Monster (made of sugar and larger than a Champagne Magnum) on the
front of the monorail train proclaiming the particular train the
"advertiser-named" train (for purposes of the bond covenants, this naming
designation will not be an official naming of the car). Simultaneous with
the Monster can crash, Roman Candle-style fireworks will shoot 20 to
30-feet into the sky, 1,000 helium balloons will be released and confetti
cannons will shoot into the air above the train and staging area.
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o Media Outreach
Hundreds of hours will be dedicated to the pitching and placement of
newspaper, magazine, Internet and radio interviews. A Video News Release
will be produced on site and made available via satellite to every
television station in North America and to the domestic news bureaus of the
top 10 international television news services. Live television interviews
will be conducted on site via satellite with television stations from the
primary target markets of Las Vegas and Hansen's. A feature press release
will be distributed nationally on Business Wire, PR Newswire or Internet
Wire and a news photo stringer will be retained to distribute photos of the
event on several news wire services. The Las Vegas Convention and Visitors
Authority will be approached by Reach Group to assist in the media outreach
effort through the distribution of press documents and photographs via the
Las Vegas News Bureau.
POST-EVENT MEDIA OUTREACH
From the conclusion of the New York and Las Vegas media events and throughout
2004, an on-going effort of media follow-up and new media outreach will be
conducted by Reach Group on behalf of Hansen's Monster Energy Drink. These
initiatives, which will be developed after the events in New York and Las Vegas,
are planned to be conducted in cooperation with the Las Vegas Monorail and as
appropriate, with the participating casino resorts, the Las Vegas Convention and
Visitors Authority, and the retailers and promotional partners of Hansen's
Monster Energy Drink.
CAMPAIGN GOALS
The overall goal of the Hansen's - Monster Las Vegas Monorail public relations
campaign is:
o To promote Hansen's Monster product as the first advertiser of the Las Vegas
Monorail.
o To generate substantial media coverage and thereby consumer awareness of the
Monster brand.
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o To leverage the news value of the Las Vegas Monorail to the benefit of the
Monster train as the first train on the track and throughout the monorail
test period and the term of the Monster contract.
o To generate the quantity and quality of pre-opening public awareness and
media coverage necessary to help generate the projected 40+ million rides
of the Las Vegas Monorail.
o To position the Las Vegas Monorail as "the" icon in Las Vegas that is a
"must-experience" attraction as well as the most efficient means of
transportation in "the most visited city in the world".
o To build a "ground swell" of media coverage that will inform consumers, the
travel industry, the business community, the financial community and local
residents about the features and benefits of the Las Vegas Monorail.