APPENDIX 2 - COUNCIL MINUTES - 1-2 MAY 1999

1. Definition of Advertising

For the purposes of this code, advertising is the name, logo, slogan, description,depiction, a variation or distortion thereof, or any other form of communication

that promotes an organisation, person, product, service, brand or idea so as to call attention to it or to persuade persons or organisations to buy, approve or otherwise support it.

2. General

2.1 Advertisements and anything advertised shall meet generally accepted moral and ethical standards.

2.2 Advertisements on sails shall be clearly separated from national letters　and sail numbers.

2.3 When, after finding the facts, a protest committee decides that a boat or　her crew has broken a rule of this code, it shall

(a) Disqualify the boat in accordance with rule 64.1; or

(b) Disqualify the boat from more than one race or from the series　when it decides that the breach warrants a stronger penalty; or

(c) Act under rule 69.1 when it decides that there may have been a　gross breach.

3. Advertising

3.1 The following types of advertising apply at all times

(a) The boat's class insignia must be displayed on her sails as required　by Appendix H.

(b) One sailmaker's mark, which may include the name or mark of the　sailcloth manufacturer and the pattern or model of the sail, may be　displayed on both sides of any sail and shall fit within a 150 mm x　150 mm square. On sails other than spinnakers, no part of such　mark shall be placed farther from the tack than the greater of 300mm or 15% of the length of the foot.

(c) One builder's mark, which may include the name or mark of the designer, may be placed on the hull, and one maker's mark may be displayed on spars and on each side of small equipment. Suchmarks shall fit within a 150 mm x 150 mm square.

(d) The forward 25% of the hull on each side, on all participating boats,shall* display advertising chosen by the event organiser.

3.2 In addition to 3.1 advertising chosen by the individual boat may be displayed in the following categories:-

(a) Category A

No additional advertising.

(b) Category C

As per Category A, hulls, spars and sails unrestricted except with respect to Appendix H.

4. All Classes- ISAF and Non-lSAF Status

4.1 Category A or C applies to all Classes, except Olympic Classes which shall be Category C.

4.2 The Class Associations shall decide the advertising status as either A or C.

4.3 If no decision is made by the class, the owner decides his status to be A or C.

4.4 If Category C status is chosen, only the MNA may introduce an Individual Advertising Licence System to permit their sailors to display advertising on their boatS.

4.5 For club or invitational events the organising authority may restrict the advertising to Category A, with the approval of the MNA of the organising club.

4.6 For specific events (promotional) when equipment is provided, and with the approval of the relevant MNA, the organising authority may apply to ISAF for a Category C Event approval.

4.7 If Category C is decided, the Class may decide the maximum level of advertising. Any restrictions within Category C shall be included in the Class Rules.

4.8 A non-Olympic Class may, in addition to Clause 3.1 (d), designate an area of the sails for the event and class sponsor. Such a requirement shall be included in the Class Rules.

The word "may" applies if the advertising is for alcohol or tobacco

5. Match Racing Events

5.1 When equipment is supplied by the event organiser Category C advertising is available to the event organiser.

5.2 The individual may display advertising on his/her clothes without restriction.

5.3 For the following events there is an ISAF "grading" fee as follows

Worlds pound 2,000

Grade pound 1,000

Note 1: No additional approval fee is required.

Note 2. Applications from Organising Authorities for Worlds and Grade I events shall be made to ISAF via the MNA, and shall be accompanied with payment of the fee. The MNA may choose to charge the Organising Authority a further fee.

6. Special Events/Classes/ISAF Events

6.1 Category C applies.

6.2 ISAF will administer an Event Advertising System and or Individual Advertising License System.

Events

Americas Cup series

Americas Cup Challenger series

Americas Cup Defender series

Americas Cup Match

Volvo Ocean Race

Global Ocean Races

Trans-Oceanic Races

Other special events at the ISAF Executive Committee's discretion

Classes

International America's Cup Class

Volvo 60'

Other special classes at the ISAF Executive Committee's discretion.

7. Fees

7.1 All boats carrying Category C advertising in line with Clause 4 should pay a fee to their MNA or the MNA of the Organising Authority (no share to ISAF).

7.2 All classes/events under Clauses 5 and 6 carrying Category C advertising shall pay a fee to ISAF (no share to MNA).

Note: Clauses 7.1 and 7.2 to be reviewed after 2 years (November 2002), before a final decision on fees is decided.

The Advertising Code will be effective from 1 January 2000.