1. CALIFORNIA’S DISPUTE WITH USSTC OVER ITS BRAND NAME SPONSORSHIP OF PROFESSIONAL BULL RIDING Deputy Attorney General Michelle Hickerson Office of the California Attorney General Tobacco Litigation & Enforcement Section 110 West A Street, Suite 1100 San Diego, CA 92101 Tel: (619) 645-2461 Email: Michelle.Hickerson @doj.ca.gov

2. PBR IS AN APPROVING ORGANIZATION SANCTIONING FOUR NATIONAL SERIES OR TOURS  BUILT FORD TOUGH SERIES  COPENHAGEN CHALLENGER TOUR  ENTERPRISE TOUR  DISCOVERY TOUR

3. STMSA BRAND NAME SPONSORSHIP RESTRICTIONS No Participating Manufacturer may engage in more than one Brand Name Sponsorship in the States in any twelve-month period. (Section III(c)(2)(A).) Brand Name Sponsorship means sponsorship of a single national or multistate series or tour. (Section II(h).) May also sponsor “an entrant, participant, or team” using the Brand Name in event that is part of sponsored series or tour. (Section II(h).)

4. CA’S DISPUTE WITH USSTC USSTC Claim to sponsor the entire PBR organization as a single national series or tour. Intended to sponsor a “team” of bullriders. Claim audience is overwhelmingly adult and no Youth contestants. CA AG’s Office PBR is a sanctioning body. USSTC must choose only one series or tour to sponsor in its Brand Name Not a team sport. PBR competition made up of entrants or participants. USSTC should sponsor only one entrant or participant. Also questioned Youth in audience, Youth participants, Youth targeting.

5. Court Entered a Stipulated Judgment in February 2009... LIMITS BRAND NAME SPONSORSHIP OF EVENTS IN CALIFORNIA TO ONE PBR SERIES OR TOUR. (CURRENTLY BUILT FORD TOUGH SERIES IS SPONSORED BY COPENHAGEN) USSTC MAY SPONSOR NO MORE THAN THREE BULLRIDERS IN CALIFORNIA WITHIN THE ONE TOUR SPONSORED. WHEN USSTC’s RIDERS COMPETE IN ANY OTHER SERIES OR TOUR, THEY CANNOT WEAR BRAND NAME.

6. DOES CA’S SETTLEMENT WITH USSTC HAVE IMPLICATIONS FOR OTHER STATES? PM’s are limited to one BNS in the states in any 12-month period. Arguably, having picked the Built Ford Tough Series as its one series or tour in CA, USSTC should not sponsor any other series or tour in the states in its Brand Name. At least one state has to taken this position with Altria, and objected to USSTC’s Copenhagen Sponsorship of the Challenger Tour.

7. What can you do? Complete event observation reports of all sponsored PBR events and share them with your Attorney General’s Office. Particularly note Copenhagen sponsorship of series or tours other than Built Ford Tough Pay attention to percentage of U-18s in audience and activities and merchandise aimed at children. May be helpful to notify your Attorney General in advance of upcoming events.