CHAMPIONSHIP BULL RIDING, INC. CBR Bull Team Challenge Agreement and 2017-2018 Rules & Regulations Whereas, the CBR Bull Team Challenge ( BTC ) scheduled bucking bull competition events are owned, sanctioned and managed by Championship Bull Riding, Inc. ( CBR ) which reserves the right and authority to rule on all aspects of the CBR BTC ( CBR Bull Team Events ), including but not limited to business, competition, infractions of these Rules and Regulations and any related disputes among CBR Bull Team Ownership owners ( Owners ), employees, independent contractors, agents and other persons affiliated with the Bull Team Ownership (collectively, including Owners, referred to as the Participants ). Whereas, CBR will investigate all disputes, controversies and complaints and has the right, power and authority to administer monetary fines, to disqualify Bull Team Ownership Participants or remove them from the CBR Bull Team Events competition if deemed necessary and in the best interests of CBR and the CBR Bull Team Events. The decisions of CBR shall be final and binding on all CBR Bull Team Ownership Owners and Participants. CBR reserves the right to make any necessary prospective changes to the CBR Bull Team Events Rules and Regulations as the CBR Bull Team Events progress with any changes to be promptly posted on the CBR website. Whereas, the reputation, public image and integrity of CBR are valuable assets that are vital to the CBR s success. Each Owner and Participant in every CBR Bull Team Event is responsible for conducting their business and personal actions and behavior relating to the CBR and its scheduled CBR Bull Team Events, including related gatherings and meetings, in a manner that demonstrates a respect and commitment to the reputation, public image and integrity of the CBR. Accordingly, illegal, dishonest, disturbing, embarrassing, disruptive or unethical conduct or behavior in the immediate vicinity of, at or around a CBR Bull Team Event or at any related gathering or meeting shall constitute a violation of these Rules and Regulations as determined in the sole discretion of the CBR, regardless of whether the Rules and Regulations specifically address the particular behavior or conduct. Now therefore, for and in consideration of the mutual covenants, promises and agreements herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby agreed to, each CBR Bull Team Ownership Owner acknowledges and agrees to the terms and conditions of this Agreement as follows: 1. Rules of Conduct: a. CBR Bull Team Participants agree to conduct themselves in a manner consistent with all applicable laws, ordinances and legal third-party restrictions and consistent with the values, objectives and positive image of CBR. b. All CBR Bull Team Event Participants present on the grounds of a CBR Event during event hours agree to be subject to the CBR Rules and Regulations. c. In addition, Participants agree that CBR maintains jurisdiction over misconduct that may occur off the grounds of the CBR Bull Team Event or outside CBR Bull Team Event hours, provided that the misconduct is directly or indirectly related to the CBR Bull Team Event. d. The Rules and Regulations shall be interpreted by CBR as broadly as is necessary to regulate any such off grounds misconduct as social media abuse, abuse of motel rooms or restaurants by Participants attending CBR BULL TEAM CHALLENGE AGREEMENT AND RULES AND REGULATIONS 2017-2018 Page 1
the CBR Bull Team Event and/or abuse of a bull entered in the CBR Bull Team Event, including but not limited to, any action or activity that is perceived or deemed by CBR as detrimental to CBR. e. The CBR may immediately terminate the Participant s participation in a CBR Bull Team Event upon the delivery of a written Notice of Termination to the Participant setting forth the conduct that has occurred which violates the Rules and Regulations, or terminate on such later date as may be set forth in such Notice of Termination, which conduct may include: i. Participant s wrongful act or wrongful failure to act that could adversely affect the CBR, or its reputation or public image, as determined by the CBR; ii. Participant s arrest, indictment or conviction for, any act of fraud, any commission of any felony other than a minor third degree felony such as a moving traffic violation involving a DWI or a DUI conviction; iii. a violation of any provision of these Rules and Regulations likely to cause harm or damage to the CBR. 2. Indemnification: a. Each CBR Bull Team Ownership owner hereby agrees to indemnify, defend, and hold CBR and its affiliates, and all of the foregoing entities' respective officers, directors, owners, employees, agents, representatives and assigns harmless from and against any and all losses, damages, liabilities and costs incurred by the Indemnified Parties in connection with any claim based upon or arising out of any breach or violation by the specific CBR Bull Team Ownership Participants of this Agreement and/or these CBR Rules and Regulations. b. No CBR Bull Team Ownership shall have any liability for the actions or inaction of any other third-party CBR Bull Team Ownership. 3. Limitation of Liability: a. UNDER NO CIRCUMSTANCES, INCLUDING NEGLIGENCE, SHALL CBR OR ITS AFFILIATES BE LIABLE TO ANY CBR BULL TEAM OWNERSHIP OWNER OR PARTICIPANT FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES INCLUDING LOST PROFITS, PERSONAL INJURY (INCLUDING DEATH) AND PROPERTY DAMAGE OF ANY NATURE WHATSOEVER, THAT MAY RESULT FROM THE PARTICIPATION BY A PARTICIPANT IN ANY CBR BULL TEAM EVENT, EVEN IF CBR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. b. MOREOVER, UNDER NO CIRCUMSTANCES SHALL CBR OR ITS AFFILIATES, OR ANY OF THE FOREGOING ENTITIES BE HELD LIABLE FOR ANY DELAY OR FAILURE IN PERFORMANCE RESULTING DIRECTLY OR INDIRECTLY FROM AN ACT OF FORCE MAJEURE OR CAUSES BEYOND ITS REASONABLE CONTROL. 4. Sale of Bull Team Ownership and CBR Right of First Refusal. a. Each Bull Team Owner acknowledges and agrees that every proposed sale of any CBR Bull Team Ownership is subject to and conditioned upon the prior written consent and approval of CBR regardless whether or not CBR elects to exercise its Right of First refusal as set forth herein below. b. Before any CBR Bull Team Ownership held by a Bull Team Owner may be sold or otherwise transferred, the selling CBR Bull Team Owner shall give CBR written notice of all the material terms and conditions of the proposed sale and CBR shall have a ten (10) business day right of first refusal after receiving such written CBR BULL TEAM CHALLENGE AGREEMENT AND RULES AND REGULATIONS 2017-2018 Page 2
notice to purchase the CBR Bull Team Ownership being offered for sale on the same terms and conditions as then being offered to the selling Bull Team Owner. c. The selling Bull Team Owner shall (a) deliver to CBR a written notice (the "Notice") stating: (i) the selling Bull Team Owner's bona fide intention to sell or otherwise transfer such CBR Bull Team Ownership; (ii) the name of each proposed purchaser or other transferee; (iii) the cash price or other consideration for which the selling Bull Team Owner proposes to transfer the CBR Bull Team Ownership (the "Offered Price"); and (v) the material terms and conditions of the proposed transfer (the "Offer Terms") and (b) offer the CBR Bull Team Ownership at the Offered Price and on the Offer Terms to CBR or its assignee(s). d. If the CBR Bull Team Ownership proposed in the Notice is not purchased by CBR within ten (10) business days after CBR receives such Notice, then the selling CBR Bull Team Owner may sell or otherwise transfer such CBR Bull Team Ownership to that proposed Transferee at the Offered Price or at a higher price and on the Offer Terms, provided that such sale or other transfer is consummated within thirty (30) days after the date of the Notice and provided further that any the proposed transferee agrees in writing that the provisions of this section shall continue to apply to the CBR Bull Team Ownership in the hands of such proposed transferee. e. If the CBR Bull Team Ownership described in the Notice is not transferred to the proposed transferee within such thirty (30) day period, a new Notice shall be given to CBR, and CBR and/or its assignees shall again be offered the Right of First Refusal before any CBR Bull Team Ownership held by the selling CBR Bull Team Owner may be sold or otherwise transferred. 5. Governing Law: Any disputes between an Owner or Participant and CBR regarding these CBR Rules and Regulations shall be governed by and construed in accordance with the laws of the State of Texas without giving effect to its conflict of law principles and the Owner or Participant hereby consents to the exclusive jurisdiction and venue in the Texas state courts in the City of Weatherford, Parker County, Texas and United States District Court for the Northern District of Texas. 6. Attorneys Fees. If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing Party in such action shall be entitled to reimbursement of costs and any attorneys fees. 1. CBR BULL TEAM OWNERSHIP: RULES AND REGULATIONS a. CBR BTC currently consists of sixty (60) CBR Bull Team Ownership teams. b. Annual Sustaining Ownership Fee = twenty-five hundred dollars ($2,500.00) per year due by August 20 th, after which a five hundred dollar ($500.00) late fee will be added to Annual Sustaining Bull Team Ownership Fee. c. Annual Sustaining Ownership Fees, entry fees, late fee penalties that have not been received by the CBR office by September 1 st, or other applicable fees, penalties or non-sufficient fund (NSF) transactions may result in suspension of competition and/or termination of Ownership, all to be determined at the sole discretion of CBR. 2. SCOPE OF COMPETITION: CBR Bull Team Events are conducted in conjunction with the televised CBR Events. CBR BULL TEAM CHALLENGE AGREEMENT AND RULES AND REGULATIONS 2017-2018 Page 3
3. ENTRY LIMITS and FEES: a. At each televised CBR Bull Team Challenge Event, BTC entries are limited to twelve (12) teams with three bulls on each team for a total of thirty-six (36) eligible bulls for each CBR BTC Event. b. Each bull will be bucked once (24 bulls in the long round and 12 bulls in the short round). c. Entry Fees will be CBR Bull Team Challenge Event specific as set by CBR. 4. PARTICIPANTS: Entries are open to all bulls with no age requirements and bulls do not have to be ABBI registered. 5. ENTRY PREFERENCES: 6. ENTRIES: a. Entries for open slots not otherwise assigned at a CBR BTC Event will be taken on a first come - first serve basis. b. A completed entry form and payment of entry fees are required for a team to be officially and formally entered into a CBR BTC Event. c. CBR BTC teams drawn out of a previous CBR BTC Event due to unavailable positions will have first preference into the next scheduled CBR BTC Event. a. Entries will be taken through the CBR offices in Weatherford, Texas for the CBR BTC Events. b. Methods of entry: Mailed entry form with payment, US Mail or overnight courier with personal checks, cashier s check, money order, or credit card or faxed entry with credit card payment. (a four percent (4%) service fee applies to all credit card entries.) c. Entries open date will be on the Monday, four weeks prior to the scheduled CBR BTC Event and will close on the Friday two weeks prior to the scheduled CBR BTC Event. d. All bulls on all CBR BTC teams must be approved by the CBR prior to the scheduled CBR BTC Event. e. If a bull is not approved, the CBR Bull Team Challenge Ownership will be notified and given the opportunity to replace the unapproved bull before the contestant draw. f. Entry forms and entry fees must be in the CBR office in Weatherford by 5:00 pm (Central Time) on entries closed date (not postmarked by entry closed date). g. Bull(s) will not be considered officially entered and added to the list of entries until all required documents and fees are received in the CBR office in Weatherford no later than the entry closing date. h. Entries received after entry closing date will be assessed a three hundred dollar ($300.00) late fee penalty. 7. HEALTH REQUIREMENTS: a. Bulls competing at CBR sanctioned or co-sanctioned events will be required to have a Certificate of Veterinary Inspection with results of a negative TB test and a negative Brucellosis test (within 12 months), unless otherwise posted in event details. b. A 30-day Certificate of Veterinary Inspection (health papers) with these test results must be presented at check-in. c. Additional requirements for individual states may differ, so Participants are required to check with a state licensed veterinarian to confirm any additional requirements. d. CBR, in its sole discretion, may request additional testing for any particular bull. e. Special ground rules regarding health requirements may apply to specific CBR events and will be included and posted in CBR BTC event details. CBR BULL TEAM CHALLENGE AGREEMENT AND RULES AND REGULATIONS 2017-2018 Page 4
8. HORNS: a. All competing bulls must have their horns tipped to the size of a fifty-cent coin prior to arriving at check-in for the CBR BTC event (broken or loose horns are excluded from this rule). b. At the discretion of a judge or event official, if an un-tipped or inadequately tipped animal arrives at a CBR sanctioned or co-sanctioned futurity, the bull must be tipped prior to competition and may be subject to a fine. c. Bulls may not be tipped on-site at the CBR Event location. d. Failure by an Owner to comply may result in forfeit or loss of any and or all entry fees and related expenses previously paid by the Owner. 9. IDENTIFICATION: a. Bulls must be fire or freeze-branded permanently with a permanent identification number and all brands must be readable. b. CBR reserves the right to disqualify any bull entered due to discrepancies in identifying bull or bulls in competition. 10. ARRIVAL / CHECK-IN: a. Check-in times will be event specific. b. Contact the Stock Manager or Event Coordinator to make arrangements for early arrival outside designated check-in times. c. Late arrivals will be subject to a two hundred dollar ($200.00) late arrival penalty. 11. COMPETITION FORMAT: The CBR Bull Team Event format will consist of the following: a. Twelve teams per event with 3 bulls each for a total of 36 bulls per team event. b. One (1) long round, with 2 bulls from each team for a total of 24 bulls. c. One (1) short round with 1 bull from each team for a total of 12 bulls. d. Four judges will be used and all four judges scores will count toward total bull score. e. Back judge will be official seconds ridden judge. f. Qualified judges will be selected By Tuff Hedeman. g. After the completion of both rounds, all three total bull scores are added together to determine the top four teams. h. The BTC competition bull with the highest marked total judges scores, excluding seconds ridden, will determine the winner of the Bull of the Event (High Marked Bull). i. The bull within the performance ridden for the most points will determine the Champion Bull (High Marked Ride). j. Points will be awarded on the following descending scale: 1 st place gets 12 points down to 12 th receiving 1 point. In the event of a tie, points will be added together, and split equally. 12. PAYOUT: Payout will be as follows (based on 12 teams): a. With a $5,000.00 entry fee per team, total purse will be $45,000.00 (75% payback). b. A Bull of the Event (High Marked Bull) from the BTC Competition will be awarded a buckle. c. A Champion Bull (High Marked Ride) from the performance will be awarded a buckle. d. $45,000.00 will be paid in four (4) places as follows: 1 st - $20,000.00; 2 nd - $12,000.00; 3 rd - $8,000.00; and 4 th - $5,000.00. CBR BULL TEAM CHALLENGE AGREEMENT AND RULES AND REGULATIONS 2017-2018 Page 5
13. CBR WORLD FINALS a. CBR will accept Twenty-Four (24) Teams for the CBR World Finals which will be composed of Twenty- One (21) Teams selected and awarded based on season points and Three (3) Teams will be awarded a position at the CBR World Finals based upon Three (3) Cheyenne Challenge ( wildcard events ). b. Ties will be on money earned at Bull Team Challenge competitions within the season and ties on money earned will be broken on event points on Three (3) events within the season. 14. CBR BULL AND STOCK CONTRACTOR OF THE YEAR VOTING a. Each team that has qualified for the CBR World Finals, based on year-end standings or Cheyenne Challenge wins, will place 1 vote towards the CBR Bull and Stock Contractor of the Year. Contractor votes will be added to a vote from each CBR World Finals qualified contestant to determine the Bull and Stock Contractor of the Year. 15. JUDGING GUIDELINES: a. CBR sanctioned or co-sanctioned CBR Bull Team Events will use four (4) judges unless stated otherwise in the event ground rules. b. Qualified judges will be selected by Tuff Hedeman. c. Bulls will be scored 1 25 (using ½ point system) points. 16. CONTESTANTS: Contestants in CBR Bull Team Events must be CBR members. 17. RE-BUCKS AND DISQUALIFICATIONS: a. If a contestant is granted a re-ride on a team bull because of a bull foul (i.e., bull hips himself, stumbles or falls down) or by human error, the contestant has the option (as per CBR rules) to request the same bull back as his re-ride with consent and agreement from the bull livestock contractor. b. If re-ride is due to bull foul, and contestant gets the bull back, the bull s score during the re-ride will count as a re-buck and be used as a part of the team s total score. If the contestant accepts designated re-ride bull, the team bull's original judges' score and time ridden will count toward team's total score. c. If re-ride is due to human error, and contestant gets bull back, the bull's score during the re-ride will count as a re-buck and be used as part of the team's total score. If the contestant accepts designated re-ride bull, the re-ride bull's score and time ridden will count toward team's total score. d. A back judge may disqualify a team bull for non-cooperation in the bucking chute, and will result in forfeiting team event entry fees. e. A rider will be given three (3) valid attempts to get out of the bucking chute before bull disqualification. 18. ELECTRICAL DEVICES AND FOREIGN OBJECTS: a. Any and all electrical devices used to stimulate the bull are not permitted for use inside the bucking chute. b. Foreign objects in flank will not be allowed or tolerated. c. Any Owner not adhering to this rule is subject to disqualification of the bull involved in the particular incident, and/or total disqualification from the competition in its entirety and forfeiture of any and all entry fees. CBR BULL TEAM CHALLENGE AGREEMENT AND RULES AND REGULATIONS 2017-2018 Page 6
d. In addition, failure to adhere to this rule could result in suspension and/or fine of the Owner and/or suspension of the bull. 19. DRAW/CHUTE POSITION: a. Bucking order will be determined by random draw. b. Positions may be altered, as needed, by the producer and / or chute boss to allow proper left hand and right hand deliveries per section. 20. TIE BREAKERS: a. There will be no tie breakers at CBR sanctioned Bull Team Events. b. Ties will be paid as straight splits. 21. WITHDRAWAL: a. Prior to contestant draw, a bull may be withdrawn without penalty or forfeit of entry fees and be replaced by another approved bull. b. After contestant draw is posted, Owners may withdraw bulls from an Event due to injury, and with the CBR livestock director or appointed representative confirming injury to bull. c. An Owner may substitute a bull from the remaining available CBR bulls already in the draw, not already on a team for that event, for a supplemental fee of one thousand dollars ($1,000.00). d. Supplement fees will be added to the bull team payout purse. e. If unable to attain a replacement bull, an Owner will receive regular CBR out money for remaining team bulls in the draw. f. Entry fees from any withdrawn bull team will remain in the payoff. 22. ALTERNATES: a. An alternate bull team will be defined as a team entered but not taken due to unavailable positions and will be created by either, draw or preference. b. If any withdraws occur, the alternate team(s) will be moved into the event replacing the withdrawn team. 23. PERSONNEL: Gate men, arena help and production labor will be provided by CBR and/or the event producer and only these designated individuals will be permitted to conduct their specific tasks. 24. TESTING & ADMINISTERING MEDICATION: a. Any substance deemed illegal for bovine use by local, state or federal law are strictly forbidden at CBR Bull Team Events. b. CBR, in its sole discretion, reserves the right to test participating bulls for any reason. c. Biological samples may be collected, including blood, tissue and/or fluids, from any bull or bulls for any reason. d. If an Owner suspects another Owner of using a substance deemed illegal for bovine, the objecting Owner may challenge the accused Owner by submitting a written and signed statement in a designated CBR Bull Team Challenge Agreement together with paying one thousand dollars ($1000.00) to CBR to challenge the said bull team to be tested for illegal substances. e. No challenges will be accepted after the event payout (typically within 15 minutes of the completion of the CBR Bull Team Event). f. All CBR Bull Team Event checks will be held until the challenge has been resolved by CBR. CBR BULL TEAM CHALLENGE AGREEMENT AND RULES AND REGULATIONS 2017-2018 Page 7
g. Within 24 hours, the said Owner whose bull team has been challenged will be required to have the bulls tested by a licensed veterinarian with CBR management present. h. If a bull(s) on the accused bull team tests negative for illegal substance, the challenging Owner shall forfeit the one thousand dollars ($1000.00) to the accused Owner whose bull was tested and the challenging Owner shall be financially responsible for any veterinarian and testing bill. i. If a bull(s) on the accused bull team tests positive for illegal substance, the accused Owner with the illegal bull(s) will pay the veterinarian and testing bills, forfeit any winning, and may be required to forfeit the Bull Team Ownership, if so determined by CBR, in its sole discretion. j. The challenging Owner will be refunded the one thousand dollars ($1000.00) challenge fee in the event the bulls in question are disqualified. k. CBR also reserves the right to levy a reasonable fine against the Owner at its discretion. 25. RULE CHANGES & DELETIONS: With written notice to all CBR Bull Team Ownership Owners, CBR reserves the right to alter, amend, revise, or otherwise change any term, condition or provision of the CBR Bull Team Challenge Agreement and the Rules and Regulations, on a prospective basis, in its sole discretion at any time. 26. By the signature below, the Owner expressly acknowledges that the Owner has carefully and thoroughly read this Agreement and these Rules and Regulations and agrees to abide by, adhere to and be subject to the terms and conditions as set forth herein. Championship Bull Riding, Inc. Benny H. Cude, Jr., Chairman of the Board Agreed by CBR Bull Team Ownership Owner: Signature: Date: Print name: Cell #: Agreed by CBR Bull Team Event Participant: Signature: Date: Print name: Cell #: CBR BULL TEAM CHALLENGE AGREEMENT AND RULES AND REGULATIONS 2017-2018 Page 8
ROAD TO CHEYENNE TOUR EVENTS & CHEYENNE CHALLENGES CBR estimates regular season qualifying event payout based on the minimum 12 teams per event. $5,000 Entry Fee. 75% Payback. 1st $20,000.00 2nd $12,000.00 3rd $8,000.00 4th $5,000.00 $45,000.00 2018 CBR WORLD FINALS AT CHEYENNE FRONTIER DAYS CBR estimates BTC World Finals payout based on the minimum 20 teams. $5,000 Entry Fee. 100% Payback. 1st $100,000.00 2nd $51,000.00 3rd $34,000.00 4th $24,000.00 5th $19,000.00 6th $12,000.00 7th $11,000.00 8th $9,000.00 9th $7,500.00 10th $6,500.00 11th $5,500.00 12th $4,500.00 13th $4,000.00 14th $3,000.00 15th $3,000.00 16th $3,000.00 17th $3,000.00 $300,000.00 CBR BULL TEAM CHALLENGE AGREEMENT AND RULES AND REGULATIONS 2017-2018 Page 9