The Company has an exclusive licensing agreement with the National Association for Stock Car Auto Racing, Inc. ("NASCAR") for location-based entertainment, which allows the Company to use the NASCAR name and logo. The Company's confidential licensing agreement with NASCAR required annual royalty payments in 2002 and requires quarterly royalty payments in 2003 through 2009 based on simulator, merchandise, food, beverage, sponsor, and remote site revenues at varying percentages. The licensing agreement has been extended through December 31, 2009 as of July 24, 2003 and the exclusivity has broadened to include "operator assisted" sites such as amusement parks, family entertainment centers, casinos, auto malls, and other similar venues.
The Company also has licensing agreements with several NASCAR race teams, drivers, and racetracks that expire on various dates through 2007.
The Company opened two new revenue share locations, one at Cowboy Pizza (4 simulators) in Monterey, CA, on October 28, and another at NASCAR SpeedPark (6 simulators) at St. Louis Mills mall on November 13.
The Company signed a revenue share agreement for 8 simulators in August with RBL Development for installation in the Burdick Driver Mall scheduled for the first quarter of 2004.
The Company signed a three year lease agreement in October with National Tour for six simulators to be installed in a mobile experience that will be exhibited at all NASCAR Nextel Cup events in 2004.
The Company signed a simulator purchase agreement with Yello Properties Ltd. in August for 12 simulators to be installed in a family entertainment center planned to open in third quarter of 2004.
Recent pr's........
NASCAR Silicon Motor Speedway's Sixth Revenue Share to Be Featured Attraction of New Burdick Driver's Village Monday December 15, 1:19 pm ET
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