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IV: Advertising Contracts (Continued) <br />A. 1. In the contract, Cimter will gu,arantee to the advertiser: <br />(Continued) <br />? <br />f. Replacement or repair of advertisement at no charge due to <br />vandalism. <br />1. Agreement between Cimter and NORC whereby the first <br />$500.00 of any vandalism claim is covered by Cimter, <br />the remainder by NORC's insurance. In other words, <br />Cimter will cover NORC's present deductable. <br />g. Verbal mention between periods and before each league <br />hockey games thanking the participating advertisers for <br />supporting NORC. <br />1. NORC has agreed to this verbal mention before or between <br />periods of hockey games. <br />V. Approximation of Expected Revenue from this Proiect <br />*Refer to enclosure #1 (Wall "B") and enclosure #2 (Wall "C"). <br />A. There is approximately 1,310 sq. ft. of advertising space on Wall <br />"B", and approximately 803 sq, ft. of.advertising space on Wall "C". <br />In combining Wall "B" and "C" there is approximately 2,113 sq. ft. <br />of advertising space available on these two walls. <br />1. $40.00 per sq. ft, is the National Advertising rate. <br />We do not.feel we have the exposure to demand the top <br />national ad rate. . <br />2. $20.00 per sq, ft. we'feel is a very reasonable neighborhood <br />or local ad rate•but low for the opportunity we are offering an <br />advertiser. - <br />3. 'Therefore, considering above (1) &(2), we are going to attempt <br />to average $30.00 per sq. ft. of advertising space. <br />B. Expected Revenue using $30.00 as an advertising rate on wa1Zs "B" <br />and "C". <br />1. Wall "B" = 1,310 sq, ft. Wall "C" = 803 sq, ft. <br />$30 sq. ft. $30 sq. ft. <br />$39,300 $240090 <br />Total Revenue $63,390 for walls "B" and "C". <br />2. We chose walls "B" and "C" to start the project for the following <br />reasons: <br />a. By limiting the advertising space available, we can fill the <br />space quicker and start production of the graphics. <br />b. As soon as Cimter and NORC have sold enough advertising to <br />cover approximately 2/3 of Cimter's cost involved in putting <br />the graphics on the wall, production will start. At this time <br />we estimate that cost to be approximately $18,000 for Wall <br />"B" and $12,500 for Wall"C" totalling $30,500 for both walls. <br />3