Agreement RJR/LOTUS/PIQUET

51600 2165

4.J
Source: http://industrydocuments.library.ucsf.edu/tobacco/docs/zlpg0065
 MEMORANDUM OF AGREEMENT

4 BETWEEN TEAM LOTUS INTERNATIONAL LIMITED ("Team Lotus")

RJ REYNOLDS TOBACCO INTERNATIONAL INC ("RJR") fff RACE ACE
MANAGEMENT CORPQRATION ("the Company") and NELSON
PIQUET-SOUTO-MA OR ("Nelson Piquet")

WHEREAS pursuant to discussions between Team Lotus, RJR, the

Company and Nelson Piquet it has been agreed betweon them
that the Company and Nelson Piquet will grant or procure the
grant to Team Lotus and RJR the right to the services of
Nelson Piquet as a racing driver together with the rights to
his promotional and-personal endorsement services and his
name and fame on the terms and conditions hereinafter
appearing

1 . The status of Nelson Piquet will be that of No . 1

driver for Team Lotus and No . 2 driver (for 1988j will
be Satoru Nakajima .y (who has signed a code of conduct to this effect)

2 . The Com p any and

q y Nelson
grant Pi uet
for hereb
1988/the
and 1g89
exclusive services of Nelson Piquet as a racing driver
to Team Lotus and grant to Team Lotus and RJR the
rights to use and exploit his name, fame and image as
well as granting his personal endorsement of sponsors'
products . It is understood that Nelson Piquet will not
be required personally to endorse tobacco products in
his individual capacity . However, Nelson Piquet shall
be obligated to endorse tobacco products in his
capacity as a member of Camel Team Lotus and driver of
a Camel Team Lotus Honda racing car .

3 . This Agreement is conditional upon . TeaPtLaftoUt% on from

Honda pi14"8x4=xi*", on or before 64 August 1987 that Honda will
supply to Team Lotus engines in 1988 .
4 . Team Lotus confirms that at the present time it has a
service contract with Gerard Ducarouge as Technical
Director for 1988 . It is the intention of Team Lotus
to extend this contract for 1989 . m
m
5 . Team Lotus has a contract with RJR as its principal
sponsor until the end of 1988 and an option exists to
extend this beyond that date .

6 . Nelson Piquet agrees that whilst at the race track he

will only wear racing uniform (helmet, overalls,
clothing worn under race uniform, anorak and cap)
approved by Team Lotus in writing and, further, that at
all sponsor functions and personal *p# promotional
appearances he will wear casual wear (polo shirt etc .)

,u (~ff d L

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 2

bearing the sponsors identification in such form as is

approved by Team Lotus .

7 . Nelson Piquet's racing uniform (as described in

Clause 6) is reserved exclusively for Team Lotus'
sponsors' displays and no personal sponsors will be
allowed .

8 . Nelson Piquet will wear a Goodyear cap when on the

podium but at other times in the racing arena and when
appropriate will wear the cap of one of Team Lotus'
sponsors .

9 . The payments to the Company cover Nelson Piquet's

exclusive personal endorsement and appearance release
to Team Lotus and its sponsors as well as for his
driving services . At no additional expense, the
Company and Nelson Piquet grant to each of Team Lotus
and RJR away from the race track ten (10) days per year
personal and promotional appearances (totalling in all
twenty days) . The reasonable expenses of Nelson Piquet
(first class travel, hotel and hire car) will be paid
by the sponsor concerned .
release to Team Lotu a JR
10 . Nelson Piquet's personal endorsement / does not ~nc u e
the right to use his signature (except in the case of
Honda) unless it is given in person (e .g . photograph
• and poster signing) .
11 . Nelson Piquet agrees that whilst at the race track he
is working exclusively for Team Lotus and its sponsors .

12 . Nelson Piquet's helmet will be identified with ths such

displays x1fiX as is determined between Team Lotus and RJR .

1 -a` °,°ls ^'^o'-- tn +'-_ ,4 . s +s . +e

(b) Honda on the visor

B
(c) Team Lotus' sec y sponsor on the chin below m
the visor ~
m
(d)_,Tw-35mm displays of RJR's choice on each rear `'
quarter .

13 . Nelson Piquet agrees to carry out such testing as is

reasonably required by Team Lotus for no additional fee
except that Team Lotus will pay his reasonable expenses (first class
;(air fare, hotel, hire car) for attending tests .

1 I

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 3

14 . Team Lotus agrees that the Company and Nelson Piquet

~ may enter into certain personal sponsorships not
connected with the racing programme but to avoid
conflict the Company and Nelson Piquet agree that they
will obtain Team Lotus' approval prior to entering such
conunitments so that the extent of such obligations may
be known and which in any case may not take priority
over the racing and testing programme .

15 . Nelson Piquet agrees that the race and test driving

activities under this Agreement are carried out at his
own risk .

16 . Remuneration for the year 1988

It is hereby agreed that the total remuneration to be

paid to the Company shall be as follows :-
1'4 , gEE 2H~_R~~1_a ___ _=~,s .t~ . .ssvn a~ ..e
.=z . i~ .._a
r i - th rr ._~a,=a=ea d
dollars (U .S .S1,500,000) by Te us in respect
of the exclusive serv Nelson Piquet as a
racing driver e rights to use and exploit
his n me and image, personal endorsement and

16 .2 the sum of three million five hundred thousand

dollars (u .S . ;3,500,000) by RJR in respect of the
rights to use and expolit the name fame and image,
personal endorsement and personal services of
Nelson Piquet as provided herein ;

16 .3 the sum of two hundred and twenty thousand dollars

(U .S .i220,000) by RJR within 21 days of the
signature hereof .
pursuant to subclauses 16 .1 and 16
Payment by each of Team Lotus and RJR/will be made in .2 hereof
four equal instalments on the last day of February,
May, August and October .

Team Lotus will pay agreed travelling and living

expenses for attending all races of U .S . ;40,000 .which amount will
paid within twenty one days of signature
Team Lotus will pay a results payment per World
Championship point of U .S .$4,000 .

A bonus will be paid in the event of Nelson Piquet

winning the World Championship in 1987 of U .S . ;500,000,
to be paid as to u .S .S150,000 by Team Lotus and as to
U .S .$350,000 by RJR .within thirty (30) days of the date upon which
the official prize giving takes place

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 RIDER I

16
.1 the sum of one million five hundred thousand dollars (U .S .
$1,500,000) by Team Lotus which shall be paid as to nine hundred

thousand United States dollars ($900,000) in respect of the

exclusive services of Nelson Piquet as a racing driver, as
to two hundred thousand United States dollars (U .S .$200,000) in respect
of his services for testing cars and as to four hundred thousand
dollars (U .S . $ 400,000) in respect of the rights to use and
exploit his name fame and image, personal endorsement and
?v4NtOf1MwI
parsanal services as provided herein ;

/~

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 4

A bonus in the event of Nelson Piquet winning the World

~ Championship in 1988 of U .S .$250,000 to be paid as
U .S .$75,000 by Team Lotus and as U .S .S175,000 by RJR .

1 hereby grant to Team-

Lotus the option for the exclusive services of Nelson
Piquet as a race driver and his exclusive personal
endorsement and appearance rel -for the year 1989 to
be exercised by Team Lotu later than 15th August
1988 except that th muneration for the year 1989
will be as set .ou below and the right to personal
sponsors ' on the uniform as described in clause 7
sha nly be acquired by Team Lotus if it expressly
that--off-ect .

1$~- Remuneration for the year 1969

Team Lotus confirm that the total remuneration agreed

to be paid to the Company for Nelson Piquet's
promotional work for sponsors and the fee for his
driving and testing will be U .S . ;5,500,000 . Payments
will be made in 4 equal instalments on the last day of
February, May, August and October .

Agreed travelling and living expenses for attending all

races U .S .$40,000 .

A payment of U .S .S220,000 in the event that Team Lotus

expressly notifies the Company and Nelson Piquet of its
wish to acquire the right to personal sponsorship on
the uniform as described in Clause 7 .

A results payment per World Championship point of

U .S . ;4,000 .

A bonus in the event of Nelson Piquet winning the World

Championship in 1989 of U .S .$250,000 .

1~s The- rID6R 2 . , and--kfr: 2

be reduced pro rata by 1/16th for ever s"sed in
either of the years if as a r something not the
fault of Team Lot example Nelson Piquet being
involv motorcycle or skiing accident etc .) the
#v-e-€ee--the- Team .
19 . SEE RIDER 2
20 . This agreement shall be governed by and construed in
accordance with English law .

21 . This Memorandum of Agreement represents the essence of

the agreement reached between Team Lotus International
Limited R .J . Reynolds Tobacco International Ine .,IM1a.ce

Source: http://industrydocuments.library.ucsf.edu/tobacco/docs/zlpg0065
 RIDSR 2

18 .
The retainer listed in 16 .1 and 16 .2 and 17 above will be reduced
pro rata by 1/16th for every race missed in either of the years

if as a result of something not the consequence of racing or

testing (for example Nelson Piquet being involved in a motorcycle
or skiing accident etc .) the driver is not available to drive for

the Team . Where the retaiijer listecj at 16 .1 and 16 .2 and 17 above

G11 . tf•e dnver i,.ad H+ISS~( rwUJ
is not reduced, the obligation to continue payment shall run for
9 ..a wu re n,. ,«Ka.~
the remainder of the racing season in which the event[occurs
'v'

and no longer .

19 . The parties hereto agree to keep confidential the contents of

this agreement and agree that neither will at anytime either

during or after the end of this agreement disclose the contents

hereof to any person or persons whatsoever (other than their
professional advisers) save with the express written consent of the
other .

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 5

We Management-Corporation and Nelson

Piquet-Souto-Ma~or and shall be legally binding on all
r parties .

_22 . A further document may be prepared setting out in

greater detail the provisions contained herein without
varying the above principle points (to the extent that
the agreement in this sentence shall be held not to be
legally binding this shall be severed from the
remainder of this agreement) . The timetable for
completing such further documentation is mutually
agreed to be 15th September 1987 .

Signed by )
for TEAM LOTUS INTERNATIONAL )
LIMITED in the presence of :- )
i

Signed by )
for R .J . REYNOLDS TOBACCO I
INTERNATIONA L INC a
n th0 )
presence of

Signed by ACE )
for AM RAC$'/MANAGEMENT 1
CORPORATION in the presence 1
of :-

Signed by NELSON PIQUET-SOUTO-)

MAROR in the presence of :- )

5th August, 1987

RWLC/LW-13

Source: http://industrydocuments.library.ucsf.edu/tobacco/docs/zlpg0065