ADDM MERCHANDISING PROGRAM AGREEMENT

URBANDALE J-HAWKS. AND URBANDALEWEAR.COM

BY BROKEN ARROW CUSTOM SCREENPRINING & EMBROIDERY

Athletic Director’s Dream (Merchandising) Machine

This is agreement of merchandising is between, Broken Arrow Custom Screenprining and Embroidery, who will provide custom apparel and the virtual and physical marketing of such apparel to Urbandale High School, represented by its Athletic Director (AD), Bill Watson.

It is the primary goal of both parties to provide Urbandale with a virtual merchandising and fulfillment program that relieves school staff, coaches, teachers and most importantly, the Athletic Director and office, of the tasks of ordering team clothing, organizing orders or handling money for team t-shirts, warm-ups, casual wear, coaches wear and parent wear, and short notice championship contest event product.

There are three areas of merchandising that this program encompasses:

1. Merchandise for fundraising: promoted and administered by Booster Club.

2. Merchandise for team wear, spirit wear-fans, parents, most all-personalized.

3. Merchandise for staff

All products marketed through this program will have fixed pricing and decorating limitations to keep the garments within affordable and functional guidelines.

All products marketed through this program are subject to profit commission (term??) to the Athletic Department/Booster Club.

Products not subject to profit include student and organization walk ins who will receive wholesale custom pricing as opposed to school merchandising pricing. It is the hope of this partnership that these types of customers join the system with all other UHS athletic groups to benefit in pricing, administration and in merchandise value and attractiveness and fulfillment simplicity.

Broken Arrowwill be the official custom screenprinting and embroidery provider of custom apparel merchandised by the Booster Club or other athletic fundraising through the 2004-2005 school year. Such product will be exclusively available through and

at Broken Arrow’s retail location on Merle Hay Road, on-line and at 2 or 3 on-site events, for the convenience of the community during the 2004-2005 school year. Broken Arrowwill maintain stock through the initial run, filling in sizes as needed, at no additional cost to the Booster Club through the season period agreed to by both parties.

CREATING THE WEB SITES AND PRODUCT LINES:

In exchange for the partnership commitment to work through the development of this program over the next full school season, Broken Arrow will provide staff and program development for the web sites and placement of product in them and also in the shopping cart technology. Broken Arrowwill provide purchasing security for Urbandalewear.

Urbandale will Promote the product lines and work with the virtual site developers to

help achieve user simplicity and compliance and thorough and correct communication.

Urbandale agrees to provide an apparel link to Urbandalewear.com, prominently on every page of its own site. Mr. Watson will work with Broken Arrowto achieve this.

Broken Arrow will meet with the Athletic Director at least twice this January and February to identify the annual needs of the entire Athletic Teams, Fans, Parents.

Broken Arrowwill provide, exclusively this product in exchange for the development of the virtual merchandising program at urbandalewear.com

ORGANIZING PROMOTING AND SELLING FUNDRAISING APPAREL

Urbandale Booster Club will manage the administration of the merchandising program.

The Booster Club will receive the licensing fees or sales proceeds for disbursement under the direction of the Athletic Director.

Booster Club representatives to include, but not limited to the Athletic Director, will choose, approve and advertise product lines chosen and produced for each season.

Broken Arrowproposes these product line seasons:

FALL FUNDRIASING: Booster Club Line for sale at registration, first football game and pre-home coming. Budget suggestion $5,000. Ends November 10.

CHRISTMAS FUNDRAISING: November-December. $3,000 if sell all Fall product.

SPRING FUNDRAISING: January, February, March, sports specific, and parentwear.

Broken Arrowwill work with Urbandale to determine best choices for fulfillment and distribution based on the merchandise.

Urbandale will attempt to provide a merchandise corner in the school newspaper that will be used to keep the market updated on merchandise deadlines, ordering, and other important information. Broken Arrowwill provide news, art and information for the ads.

Urbandale will display garments for sale in a secure area.

Urbandale will send patrons to Broken Arrowfor clothing needs.

Broken Arrow will produce flyer for season merchandise promotions.

Urbandale will provide duplication, mail or mass distribution of promotional pieces.

Fundraising product lines for next Fall and after will be created in March 2004.

BOOSTER CLUB INITIAL INVESTMENT:

PRODUCT LINE DECEMBER 2003 BUDGET $2500

The customer pays for the initial inventory which ensures marketing/commitment by the customer in promoting the site and sales to their customers.

The profit projected is only on the initial order with the balance of the investment being reimbursed by the proceeds from product to be produced past the original 24 quantity.

If the 24 of each items sells through, then you will receive 100% of your initial investment back or it will be the deposit on the next season.

Ideally the school invests the first product line and never wants that investment back…just keeps using it as a deposit on the next season.

Broken Arrowwill reimburse the booster club 100% of initial line costs as they sell out plus a specified fee per item, as per product line attachment A.

GETTING THE COACHES VIRTUALLY ON!

Urbandale agrees to encourage all coaches to use Broken Arrowfor their teamwear, other than official playing varsity uniforms and shoes, and thus Urbandalewear.com linked to J-Hawks.com, virtual merchandise system for students to order sizes and garments direct from Broken Arrow.

Mr. Watson has agrees to organize all JHS coaches to meet with Broken Arrow, one by one if needed, well before their season, at Broken Arrow’s Merle Hay location or in a group meeting, per what works best for the parties.

Broken Arrowand Mr. Watson agree that a phase in of the coaches and teams on-line may take a year or two. Urbandale commits to five coaches during the spring of 2004 sports season with this a goal of at least this many again in fall and winter sports, with 100% of all coaches participating for the 2006-07 seasons.

PRODUCT LINE FOR TEAM WEAR.

Broken Arrow will design and illustrate products for all committed sports for the 2004-2005 teams identified – Girls Track, Girls Soccer, Boys Soccer, Tennis at no cost to the school or Booster Club. This will be complete in December 2003.

All other sports that Mr. Watson feels will participate in the Fall to spring programs next year will be completed by February.

All proposed designs will be custom and can be changed before season, if it is okay with the coaches and if team representatives want to work with Broken Arrow60 days pre-season so it can be on-line for order 30 days before season begins.

Team Clothing may be distributed by team captains at the beginning of a season. Teamwear will be bagged and labeled by name. Fan wear will be distributed according to captain or team representative preference. This will be worked at by them, directly with Broken Arrow. All checks and payments will be made to Broken Arrow.

TERMS OF THIS PARTNERSHIP

This agreement is binding to the degree that both parties are bound to work together, as partners to make this merchandise program work for both parties. Non performance on one or the other’s part is reason for termination if written communication fails to achieve results desired by the goals of this project.

The program may change to improve, and hopefully will as the needs of the customer are more finely determined and as more coaches and patrons get virtual. This is a large project for Broken Arrowand takes a team of people who will work hard to keep things progressing, but must have correct information to work with within deadlines agreed upon.